国鸿氢能(09663) - 2025 - 中期业绩

Financial Highlights The company reported a 55.7% revenue decrease to RMB 58.9 million, with loss attributable to owners narrowing by 13.2% to RMB 184.2 million, and basic loss per share reducing to RMB 0.36. - During the reporting period, total revenue was approximately RMB 58.9 million, a 55.7% decrease from the prior period[3] - During the reporting period, loss attributable to owners was approximately RMB 184.2 million, a 13.2% decrease from the prior period[3] - Basic loss per share was RMB 0.36, a 12.2% reduction from RMB 0.41 in the prior period[3] - The Board resolved not to declare any interim dividend for the reporting period[3] Condensed Consolidated Financial Statements This section presents the condensed consolidated financial statements, including the income statement, comprehensive income statement, and balance sheet, with detailed explanatory notes. Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, revenue significantly decreased by 55.7% to RMB 58.883 million, operating loss narrowed to RMB 183.063 million, and loss attributable to owners was RMB 184.248 million. Condensed Consolidated Statement of Profit or Loss | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 58,883 | 133,012 | | Cost of sales | (55,788) | (132,242) | | Gross profit | 3,095 | 770 | | Selling expenses | (14,113) | (20,825) | | Research and development expenses | (67,785) | (65,302) | | Administrative expenses | (96,667) | (113,497) | | Net impairment losses on financial and contract assets | (22,566) | (44,553) | | Other income | 6,173 | 7,410 | | Other gains – net | 8,800 | 28,035 | | Operating loss | (183,063) | (207,962) | | Finance costs – net | (10,876) | (6,065) | | Share of profits of associates and joint ventures accounted for using the equity method | 11,908 | 90 | | Loss before income tax | (182,031) | (213,937) | | Income tax (expense) / credit | (2,396) | 1,640 | | Loss for the period | (184,427) | (212,297) | | Loss for the period attributable to owners of the Company | (184,248) | (212,297) | Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, total comprehensive loss for the period was RMB 184.500 million, narrowing from RMB 192.045 million in the prior period, primarily due to reduced loss for the period and changes in other comprehensive income. Condensed Consolidated Statement of Comprehensive Income | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Loss for the period | (184,427) | (212,297) | | Other comprehensive income: Exchange differences on translation | (73) | 260 | | Other comprehensive income: Net fair value gains on financial assets at fair value through other comprehensive income | – | 19,992 | | Total comprehensive loss for the period | (184,500) | (192,045) | | Total comprehensive loss for the period attributable to owners of the Company | (184,321) | (192,045) | Condensed Consolidated Statement of Financial Position As of June 30, 2025, total assets were RMB 4,337.699 million, a decrease from year-end 2024; total equity was RMB 2,797.855 million, and total liabilities were RMB 1,539.844 million. Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Assets | | | | Total non-current assets | 1,180,581 | 1,244,773 | | Total current assets | 3,157,118 | 3,419,368 | | Total assets | 4,337,699 | 4,664,141 | | Equity | | | | Equity attributable to owners of the Company | 2,778,963 | 2,971,357 | | Non-controlling interests | 18,892 | 17,071 | | Total equity | 2,797,855 | 2,988,428 | | Liabilities | | | | Total non-current liabilities | 292,345 | 316,215 | | Total current liabilities | 1,247,499 | 1,359,498 | | Total liabilities | 1,539,844 | 1,675,713 | | Total equity and liabilities | 4,337,699 | 4,664,141 | Notes to the Condensed Consolidated Interim Financial Statements This section details the basis of preparation, accounting policies, segment information, and specific composition and changes of key financial items, including revenue, operating loss, tax, loss per share, receivables, payables, financial assets, share capital, and dividends. General Information Guohong Hydrogen Energy Technology (Jiaxing) Co., Ltd. was established in 2015, restructured as a joint-stock company in 2022, primarily engaged in R&D, production, and sales of hydrogen fuel cell stacks and systems in China, and listed on the HKEX on December 5, 2023. - The Company was incorporated on June 30, 2015, in Yunfu City, Guangdong Province, China, and restructured as a joint-stock company on March 22, 2022[8] - Its principal business involves the research, development, production, and sale of hydrogen fuel cell stacks and systems[8] - H shares have been listed on The Stock Exchange of Hong Kong Limited since December 5, 2023[8] Basis of Preparation The condensed consolidated interim financial information is prepared in accordance with IAS 34, consistent with accounting policies used for the annual consolidated financial statements as of December 31, 2024, and discloses new and amended standards adopted and not yet adopted. - The condensed consolidated interim financial information is prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting"[10] - The accounting policies adopted are consistent with those applied in the consolidated financial statements for the year ended December 31, 2024, with no need for the Group to modify its accounting policies or make retrospective adjustments[10][11] - New and amended standards and interpretations issued but not yet effective for the financial year beginning January 1, 2025, and not early adopted by the Group, including amendments to IFRS 9 and IFRS 7, are disclosed, with the Group currently assessing their full impact[11] Segment Information Management reviews business operating results as a single segment for resource allocation decisions, with virtually all non-current assets and revenue derived from operations in China. - Management reviews the operating results of the business as one segment to make decisions about resource allocation[12] - All of the Group's non-current assets are located in China, and virtually all revenue is derived from operations in China[12] Revenue (Notes) Revenue primarily derives from sales of hydrogen fuel cell systems, stacks, and components, as well as maintenance services. During the reporting period, hydrogen fuel cell system sales significantly decreased, while maintenance service revenue grew substantially. Revenue by Product Category | Product Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Hydrogen fuel cell systems | 36,651 | 130,939 | | Hydrogen fuel cell stacks | 2,017 | 432 | | Hydrogen fuel cell system components | 1,035 | 619 | | Maintenance services | 18,651 | – | | Others | 529 | 1,022 | | Total | 58,883 | 133,012 | Operating Loss (Notes) Operating loss is primarily influenced by inventory costs, employee benefits expenses, depreciation, amortization, inventory impairment provisions, and financial asset impairment losses. During the reporting period, inventory costs and employee benefits expenses significantly decreased, but inventory impairment provisions and financial asset impairment losses remained substantial components. Operating Loss Items | Operating Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of inventories | 60,210 | 103,794 | | Employee benefits expenses | 54,163 | 105,765 | | Depreciation of property, plant and equipment | 43,643 | 40,898 | | Depreciation of right-of-use assets | 6,267 | 7,685 | | Amortisation of intangible assets | 3,059 | 3,153 | | Provision for impairment of inventories | 5,909 | 2,542 | | After-sales service expenses | 1,833 | 2,866 | | Gain on disposal of financial assets at fair value through profit or loss | (7,246) | – | | Net fair value gains on financial assets at fair value through profit or loss | (2,704) | (21,839) | | Net exchange gains | (3,264) | (5,656) | | Government grants and subsidies | (6,022) | (6,551) | | Net impairment losses on financial assets and contract assets | 22,566 | 44,553 | | Total | 178,414 | 277,210 | Finance Costs – Net (Notes) During the reporting period, net finance costs increased from approximately RMB 6.065 million in the prior period to RMB 10.876 million, primarily due to increased interest expenses on borrowings. Net Finance Costs | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Finance income – bank interest income | 1,355 | 4,706 | | Finance costs – interest expenses on borrowings | (9,720) | (8,941) | | Finance costs – interest expenses on lease liabilities | (2,511) | (1,864) | | Finance costs – amount capitalised for property under construction | – | 34 | | Finance costs – net | (10,876) | (6,065) | Income Tax Expense / (Credit) (Notes) During the reporting period, the Group recorded an income tax expense of approximately RMB 2.396 million, compared to an income tax credit of approximately RMB 1.640 million in the prior period, mainly due to changes in current and deferred income tax, with some entities benefiting from preferential tax rates for high-tech enterprises or Western Development regions. Income Tax Expense / (Credit) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current income tax | 7 | (58) | | Deferred income tax | 2,389 | (1,582) | | Income tax expense / (credit) | 2,396 | (1,640) | - The applicable corporate income tax rate for the Company's entities in mainland China is 25%, but "High and New Technology Enterprises" enjoy a preferential corporate income tax rate of 15%[17] - For the six months ended June 30, 2025, 15 of the Group's subsidiaries qualified as small and micro-enterprises, enjoying a 20% corporate income tax rate; two subsidiaries benefited from a 15% preferential income tax rate due to their location in China's Western Development regions[17] - Hong Kong subsidiaries are subject to Hong Kong profits tax at a rate of 16.5%[18] Loss Per Share (Notes) For the six months ended June 30, 2025, basic loss per share was RMB 0.36, a reduction from RMB 0.41 in the prior period, primarily due to a decrease in loss attributable to owners. Diluted loss per share was the same as basic loss per share due to the recorded loss. Basic Loss Per Share | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Loss attributable to shareholders of the Company (RMB thousand) | (184,248) | (212,297) | | Weighted average number of ordinary shares in issue (thousand shares) | 517,595 | 518,042 | | Basic loss per share (expressed in RMB per share) | (0.36) | (0.41) | - On December 5, 2023, the Company issued 79,520,000 ordinary shares through an initial public offering, raising a total subscription amount of approximately RMB 1,422.9 million[21] - As the Group recorded losses for the six months ended June 30, 2025, and 2024, share-based payments had an anti-dilutive effect on the Group's loss per share, thus diluted loss per share was the same as basic loss per share[22] Trade and Bills Receivables (Notes) As of June 30, 2025, total trade and bills receivables were RMB 1,639.974 million, a decrease from RMB 1,724.350 million at year-end 2024, with approximately 33% of receivables due within one year. Trade and Bills Receivables | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Current trade and bills receivables | 1,600,483 | 1,685,471 | | Non-current trade and bills receivables | 39,491 | 38,879 | | Total | 1,639,974 | 1,724,350 | Ageing of Trade and Bills Receivables | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 year | 541,897 | 546,315 | | 1 to 2 years | 561,359 | 671,533 | | 2 to 3 years | 566,009 | 637,914 | | Over 3 years | 481,531 | 358,009 | | Total | 2,150,796 | 2,213,771 | Financial Assets at Fair Value Through Profit or Loss (Notes) As of June 30, 2025, financial assets at fair value through profit or loss primarily consisted of wealth management products, totaling RMB 1,122.884 million, an increase from RMB 1,021.535 million at year-end 2024. Financial Assets at Fair Value Through Profit or Loss | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Wealth management products | 1,122,884 | 1,021,535 | - These investments refer to investment funds managed by investment managers of various private equity funds or financial institutions, with investment objectives in cash or cash equivalents, government bonds, and other money market instruments[25] Financial Assets at Fair Value Through Other Comprehensive Income (Notes) As of June 30, 2025, financial assets at fair value through other comprehensive income were unlisted equity investments, totaling RMB 99.836 million, consistent with year-end 2024. Financial Assets at Fair Value Through Other Comprehensive Income | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Unlisted equity investments | 99,836 | 99,836 | Trade and Bills Payables (Notes) As of June 30, 2025, total trade and bills payables were RMB 680.538 million, a decrease from RMB 791.894 million at year-end 2024, with approximately 44.5% of payables due within one year. Trade and Bills Payables | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade payables | 655,791 | 702,510 | | Bills payables | 24,747 | 89,384 | | Total | 680,538 | 791,894 | Ageing of Trade and Bills Payables | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 year | 302,951 | 517,389 | | 1 to 2 years | 209,755 | 189,631 | | 2 to 3 years | 160,719 | 83,918 | | Over 3 years | 7,113 | 956 | | Total | 680,538 | 791,894 | Share Capital (Notes) As of June 30, 2025, the Company's share capital was RMB 518.042 million, and share premium was RMB 3,657.827 million, consistent with the beginning and end of 2024. Share Capital and Share Premium | Metric | January 1, 2025 and June 30, 2025 (RMB thousand) | January 1, 2024 and June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Share capital | 518,042 | 518,042 | | Share premium | 3,657,827 | 3,657,827 | Dividends (Notes) For the six months ended June 30, 2025, and 2024, neither the Company nor any of its current subsidiaries paid or declared any dividends. - For the six months ended June 30, 2025, and 2024, neither the Company nor any of its current subsidiaries paid or declared any dividends[30] Events After the Reporting Period (Notes) Except as disclosed elsewhere in this announcement, there have been no significant events after June 30, 2025, up to the date of this announcement. - Except as disclosed elsewhere in this announcement, there have been no significant events after June 30, 2025, up to the date of this announcement[31] Business Overview The company focuses on product upgrades, R&D innovation, and governance optimization to enhance its market position and operational efficiency in the hydrogen energy sector. Product Upgrades and Application Expansion The company continuously increases R&D investment, achieving breakthroughs in fuel cell stack and system technologies, completing a 0-360kW power range layout, and actively expanding into new application scenarios like hydrogen-powered ships, hydrogen production equipment, drones, and two-wheelers, while deepening traditional advantageous areas such as transportation, rail, and power generation. - In water-cooled stack R&D, the new high-power Hongxin GIII stack's rated performance has been further enhanced, and the power generation-specific Hongxin GIV stack has been developed[33] - In air-cooled stack R&D, two air-cooled stacks have been developed based on demand for drones and hydrogen-powered two-wheelers[33] - Fuel cell system products have completed a 0 – 360kW power range layout, adaptable to various application scenarios such as intelligent mining trucks, long-haul logistics heavy trucks, hydrogen locomotives, high-speed trains, ships, and stationary power generation[33] - The company is deploying hydrogen production equipment products across both alkaline electrolyzer and proton exchange membrane electrolyzer technology routes, focusing on independent development of megawatt-scale electrolyzer technology[33] - In domestic hydrogen transportation applications, hydrogen heavy trucks achieved rapid integration with China-Europe freight trains for the first time, and large-scale "water-rail-road" hydrogen multimodal transport was implemented in Chongqing, with nearly 100 hydrogen vehicles operating in the Northwest region, and Jiaxing Port delivering its 100th hydrogen container truck[34] - Successfully won the bid for Inner Mongolia Autonomous Region's scientific and technological breakthrough project "Research on High-Density Rare Earth Solid-State Hydrogen Storage in Hydrogen Fuel Cell Rail Locomotives," providing 480kW high-power hydrogen fuel cell systems to the Baogang Group consortium[36] - In overseas hydrogen power generation equipment applications, in collaboration with China State Construction Engineering (Hong Kong) Limited and Sinopec (Hong Kong) Limited, Hong Kong's first hydrogen power generation application project was launched at the Hong Kong-Shenzhen Innovation and Technology Park construction site[36] R&D Innovation During the reporting period, R&D expenditure exceeded RMB 67.8 million, focusing on fuel cell stacks, systems, hydrogen power generation systems, marine applications, and innovative technology reserves to enhance product economics, reliability, and durability, while improving test center capabilities through CNAS certification. - R&D expenditure exceeded RMB 67.8 million during the reporting period[37] - In fuel cell stack R&D, the company continuously improved the performance of water-cooled stack products (Hongxin GIII, GIV) and expanded the air-cooled stack product matrix (drones 2-6kW, two-wheelers 300-500W)[37] - In fuel cell system R&D, the company continuously enhanced product performance, environmental adaptability, reliability, and durability, making smooth progress in key technologies such as adaptive fan coil control algorithms, electrochemical impedance spectroscopy detection, and fault prediction and health management[37] - In hydrogen power generation system R&D, the company optimized megawatt-scale stationary hydrogen fuel power generation systems, forming modular solutions, and achieving miniaturized, modular design and high reliability in distributed energy and backup power scenarios[37] - In marine application R&D, the C240 system comprehensively enhanced safety designs including explosion protection, ventilation, dual power switching, multi-point hydrogen concentration monitoring, and insulation isolation, while adopting intelligent temperature control algorithms[37] - In innovative technology reserves, the company developed megawatt-scale proton exchange membrane (PEM) electrolyzer technology and a new generation 1,000 Nm³/h alkaline electrolyzer technology, along with a hydrogen production system featuring Safety Instrumented System (SIS) functions[38] - Guohong Hydrogen Energy R&D Center – Test Center passed the China National Accreditation Service for Conformity Assessment (CNAS) review, successfully obtaining national laboratory accreditation[38] Governance Optimization The company is advancing internal management reforms around four core directions: "governance upgrade, organizational optimization, talent revitalization, and cost reduction and efficiency improvement," to enhance decision-making efficiency, risk control, organizational effectiveness, and talent vitality, achieving optimized operating cost structure and strengthened governance resilience. - The company is advancing internal management reforms and operational system upgrades around four core directions: "governance upgrade, organizational optimization, talent revitalization, and cost reduction and efficiency improvement"[39] - In the future, the governance system will be fully upgraded, with decision-making efficiency and risk control at its core, improving the authority and responsibility system and internal control mechanisms[39] - Optimize organizational structure, break down departmental barriers, build a flat structure, and strengthen market responsiveness and cross-functional collaboration capabilities[39] - The talent strategy is value-creation oriented, aiming to stimulate team innovation vitality and professional potential through talent pipeline development, precise incentive mechanisms, and optimized empowerment systems[39] - Management cost reduction and efficiency improvement will focus on full value chain optimization through rationalized authorization, streamlined processes, refined resource allocation, and deep application of business informatization[39] Financial Review This section provides a detailed financial review, analyzing revenue, cost of sales, gross profit, other income and gains, impairment losses, operating expenses, finance costs, income tax, and loss attributable to owners. Revenue Analysis Total revenue for the reporting period was approximately RMB 58.9 million, a 55.7% year-on-year decrease, primarily due to the hydrogen fuel cell industry's early commercialization stage, market sales pressure, and declining average selling prices. Hydrogen fuel cell system sales decreased, but stack sales grew significantly. - During the reporting period, the Group's revenue was approximately RMB 58.9 million, a 55.7% decrease compared to the prior period[41] - The decrease in revenue was primarily due to the hydrogen fuel cell industry still being in its early commercialization stage, market sales pressure, and a decline in the average selling price of hydrogen fuel cell systems[41] Revenue by Product Type | Product Type | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Hydrogen fuel cell systems | 36,651 | 130,939 | | Hydrogen fuel cell stacks | 2,017 | 432 | | Hydrogen fuel cell system components | 1,035 | 619 | | Maintenance services | 18,651 | – | | Others | 529 | 1,022 | | Total Revenue | 58,883 | 133,012 | - Sales volume of hydrogen fuel cell stacks increased from 240.0 kW in the prior period to 2,396.1 kW in the reporting period, while the average selling price decreased from RMB 1,799.4/kW to RMB 841.8/kW[44][45] - Sales volume of hydrogen fuel cell systems decreased from 34,645.0 kW in the prior period to 11,090.0 kW in the reporting period, while the average selling price decreased from RMB 3,779.4/kW to RMB 3,304.9/kW[44][45] Cost of Sales Cost of sales decreased by 57.8% from RMB 132.242 million in the prior period to RMB 55.788 million in the reporting period, primarily due to lower raw material costs, although inventory impairment losses significantly increased by 132.5%. Cost of Sales Details | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | Year-on-year change (%) | | :--- | :--- | :--- | :--- | | Raw materials | 36,006 | 108,693 | (66.9) | | Employee benefits expenses | 3,712 | 8,664 | (57.2) | | Depreciation and amortization expenses | 8,287 | 6,658 | 24.5 | | Others | 1,873 | 5,685 | (67.1) | | Subtotal | 49,879 | 129,700 | (61.5) | | Impairment losses on inventories | 5,909 | 2,542 | 132.5 | | Total | 55,788 | 132,242 | (57.8) | - Raw material costs decreased by 66.9% from approximately RMB 108.7 million in the prior period to approximately RMB 36.0 million in the reporting period, mainly due to a decline in sales revenue from hydrogen fuel cell systems[47] - Impairment losses on inventories increased by 132.5% from approximately RMB 2.5 million in the prior period to approximately RMB 5.9 million in the reporting period, primarily due to further impairment provisions for long-aged obsolete raw materials[48] Gross Profit and Gross Margin The Group's gross profit significantly increased by 301.9% from RMB 0.8 million in the prior period to RMB 3.1 million in the reporting period, with gross margin rising from 0.6% to 5.3%, primarily due to reduced unit costs from mass production of hydrogen fuel cell systems and higher gross margins from maintenance services. Gross Profit and Gross Margin Details | Product Type | 2025 (RMB thousand) | 2025 (%) | 2024 (RMB thousand) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Hydrogen fuel cell stacks | (594) | (29.5) | 204 | 47.2 | | Hydrogen fuel cell systems | 4,608 | 12.6 | 3,123 | 2.4 | | Hydrogen fuel cell system components and others | 330 | 21.1 | (15) | (0.9) | | Maintenance services | 4,660 | 25.0 | – | – | | Subtotal | 9,004 | 15.3 | 3,312 | 2.5 | | Less: Impairment losses on inventories | (5,909) | Not applicable | (2,542) | Not applicable | | Total | 3,095 | 5.3 | 770 | 0.6 | - The Group's gross profit significantly increased by 301.9% from approximately RMB 0.8 million in the prior period to approximately RMB 3.1 million in the reporting period, with gross margin increasing from approximately 0.6% to approximately 5.3%[49] - The growth in gross profit and gross margin was primarily due to the Group's hydrogen fuel cell systems entering mass production settlement during the reporting period, leading to a decrease in unit cost of sales; and the higher gross margin from hydrogen fuel cell vehicle maintenance services provided by the Group[49] - During the reporting period, the Group's hydrogen fuel cell stacks recorded a negative gross profit, mainly due to significant market price reductions[49] Other Income and Gains Other income decreased by 16.2% to RMB 6.2 million, mainly due to reduced government grants; net other gains decreased by 68.6% to RMB 8.8 million, primarily impacted by lower fair value gains and exchange rate fluctuations. - The Group's other income decreased by approximately 16.2% from approximately RMB 7.4 million in the prior period to approximately RMB 6.2 million in the reporting period, mainly due to a reduction in government grants and subsidies[50] - The Group's net other gains decreased by approximately 68.6% from approximately RMB 28.0 million in the prior period to approximately RMB 8.8 million in the reporting period, primarily due to a decrease in fair value gains of approximately RMB 19.1 million, impacted by exchange rate fluctuations[51] Net Impairment Losses Net impairment losses on financial and contract assets decreased by 49.4% to RMB 22.6 million, primarily due to a reduction in the provision for expected credit losses on trade receivables. - The Group's impairment losses on financial and contract assets decreased by approximately 49.4% from approximately RMB 44.6 million in the prior period to approximately RMB 22.6 million in the reporting period[52] - The decrease was mainly due to a reduction in the provision for expected credit losses on trade receivables compared to the prior period[52] Operating Expenses Administrative expenses decreased to RMB 96.7 million, mainly due to no share-based payment expenses and savings in employee compensation; selling expenses decreased to RMB 14.1 million, primarily due to reduced marketing expenses; R&D expenses increased to RMB 67.8 million, mainly due to continuous increased R&D investment. - The Group's administrative expenses decreased from approximately RMB 113.5 million in the prior period to approximately RMB 96.7 million in the reporting period, mainly due to no share-based payment expenses and savings in employee compensation[53] - The Group's selling expenses decreased from approximately RMB 20.8 million in the prior period to approximately RMB 14.1 million in the reporting period, mainly due to reduced marketing expenses[54] - The Group's R&D expenses increased from approximately RMB 65.3 million in the prior period to approximately RMB 67.8 million in the reporting period, mainly due to the company's continuous increased R&D investment in key projects such as fuel cell stacks, fuel cell systems, stationary generators, and water electrolysis hydrogen production equipment[55] Net Finance Costs Net finance costs increased to approximately RMB 10.9 million, primarily due to increased interest expenses on borrowings and decreased interest income from deposits. - During the reporting period, the Group's net finance costs were approximately RMB 10.9 million (prior period: approximately RMB 6.1 million)[56] - Primarily due to the combined effect of increased interest expenses on borrowings and decreased interest income from deposits[56] Income Tax Expense / (Credit) During the reporting period, an income tax expense of approximately RMB 2.4 million was recorded, compared to an income tax credit of approximately RMB 1.6 million in the prior period. - During the reporting period, the Group recorded an income tax expense of approximately RMB 2.4 million[57] - An income tax credit of approximately RMB 1.6 million was recorded in the prior period[57] Loss Attributable to Owners of the Company During the reporting period, the loss attributable to owners of the Company was approximately RMB 184.2 million, narrowing from approximately RMB 212.3 million in the prior period. - During the reporting period, the loss attributable to owners of the Company was approximately RMB 184.2 million[58] - Approximately RMB 212.3 million in the prior period[58] Liquidity, Financing and Capital Resources This section reviews the company's liquidity, financing activities, capital resources, including cash flow, borrowings, capital commitments, and foreign exchange risk. Liquidity Overview The Group's primary liquidity sources include cash from operating activities, bank borrowings, and proceeds from H-share listing. As of June 30, 2025, cash and cash equivalents (including restricted cash) decreased by approximately 69.3% to RMB 95.2 million, with net current assets of RMB 1,909.6 million and a current ratio of approximately 2.5. - The Group's primary liquidity sources include cash generated from operating activities, bank borrowings, and proceeds from the listing of H shares on the Stock Exchange on December 5, 2023[59] - As of June 30, 2025, the Group's cash and cash equivalents (including restricted cash) were approximately RMB 95.2 million, a decrease of approximately 69.3% from approximately RMB 309.6 million at the beginning of the reporting period[59] - As of June 30, 2025, the Group's net current assets were approximately RMB 1,909.6 million, and the current ratio was approximately 2.5[59] Borrowings and Pledges As of June 30, 2025, the Group's total outstanding current and non-current borrowings were approximately RMB 544.4 million, a 2.8% year-on-year increase, with long-term borrowings accounting for approximately 31.6% of total borrowings, secured by various assets. Borrowing Term Grouping | Borrowing Term | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Year-on-year change (%) | | :--- | :--- | :--- | :--- | | Within one year | 372,268 | 332,408 | 12.0 | | One to two years | 84,480 | 82,921 | 1.9 | | Two to five years | 87,602 | 114,405 | (23.4) | | Total | 544,350 | 529,734 | 2.8 | - As of June 30, 2025, the Group's bank loans were approximately RMB 544.4 million[61] - Secured borrowings include those collateralized by deposits, land use rights, property, plant and equipment, production lines, and rights to receivables[61] - As of June 30, 2025, long-term borrowings accounted for approximately 31.6% of the Group's total borrowings, with weighted average effective interest rates for bank and third-party borrowings at 3.48% and 3.39%, respectively[61] Gearing Ratio During the reporting period, the gearing ratio remained relatively stable at 0.2. - From the prior period to the reporting period, the gearing ratio remained relatively stable at 0.2[62] Capital Commitments and Expenditures As of June 30, 2025, the Group's contracted but unprovided capital commitments for the acquisition of property, plant, and equipment were approximately RMB 277.9 million, with capital expenditure during the reporting period of approximately RMB 21.8 million. - As of June 30, 2025, the Group's contracted but unprovided capital commitments for the acquisition of property, plant and equipment were approximately RMB 277.9 million[63] - During the reporting period, the Group's capital expenditure was approximately RMB 21.8 million[64] Foreign Exchange and Exchange Rate Risk The Group primarily operates in China, facing foreign exchange risk from RMB fluctuations against other currencies, but has not entered into hedging transactions, expecting no significant adverse impact from exchange rate volatility. - The Group primarily operates in China, thus facing foreign exchange risk arising from fluctuations in the exchange rates between RMB and other currencies involved in the Group's business operations[65] - As of June 30, 2025, the Group had not entered into any hedging transactions for foreign exchange risk[65] - The Directors do not expect fluctuations in the RMB exchange rate to have a significant adverse impact on the Group's operations[65] Contingent Liabilities As of June 30, 2025, the company reported no significant contingent liabilities. - As of June 30, 2025, the Company had no significant contingent liabilities[66] Future Development and Outlook The company outlines its future strategy focusing on technology innovation, integrated hydrogen energy ecosystem development, business diversification, and lean operational management. Commercialization of Technological Innovation The company will adhere to product technology innovation, increase R&D investment in core products, focusing on breakthroughs in high power density and extreme environment tolerance for stacks, modular integration and multi-scenario adaptability for fuel cell systems, and core technologies and cost reduction bottlenecks for hydrogen production equipment, to consolidate its market leading position. - In the future, the company will adhere to product technology innovation, increase R&D investment in core products, and drive synergistic upgrades across the entire industry chain through technological innovation[68] - Key breakthroughs will focus on high power density and extreme environment tolerance for stack products, strengthening modular integration and multi-scenario adaptability for fuel cell system products, and overcoming core technology and large-scale cost reduction bottlenecks for hydrogen production equipment[68] - By continuously improving comprehensive product performance and accelerating systematic technological iteration, the company aims to provide efficient and reliable products and services for the commercial application of hydrogen energy technology, consolidating its leading market position in the hydrogen fuel cell industry[68] Integrated Hydrogen Energy Ecosystem The company will commit to building an integrated "equipment + scenario + finance" development model, driving the hydrogen energy industry from demonstration to commercial scale through equipment cost reduction, scenario innovation, and financial capital synergy, creating a closed-loop ecosystem across the entire hydrogen energy value chain. - The company will be dedicated to building an innovative commercial ecosystem model for the hydrogen energy industry, fully promoting the integrated development of "equipment + scenario + finance"[69] - Solidifying the industrial foundation through equipment cost reduction, unleashing market momentum through scenario innovation, and connecting resource elements through financial capital[69][70] - Systematically promoting the hydrogen energy industry from demonstration to commercial scale, creating a closed-loop ecosystem across the entire hydrogen energy value chain[70] Business Diversification and Expansion The company will actively implement a "Hydrogen Energy+" diversified development strategy, consolidating its advantages in automotive hydrogen energy while deeply expanding into transportation applications like rail, marine, and two-wheelers, focusing on energy supply fields such as water electrolysis hydrogen production and distributed power generation, and exploring commercial applications of hydrogen drones in low-altitude economy scenarios. - The company will actively implement a "Hydrogen Energy+" diversified development strategy, maintaining its market leading position by continuously consolidating its first-mover advantage in automotive hydrogen energy equipment[71] - Continue to deeply expand into commercial transportation application fields such as rail transit, marine vessels, and two-wheeled motorcycles, promoting China's zero-carbon transformation in transportation[71] - Focus on deploying in energy supply fields such as water electrolysis hydrogen production and distributed power generation, striving to break through multi-scenario efficient energy supply technologies[71] - Actively respond to the national low-altitude economy development strategy, focusing on the commercial application of drones in new quality productive forces scenarios, and accelerating the product layout for hydrogen drone application scenarios[71] Lean Operational Management The company will implement a dual-track strategy of "talent efficiency enhancement and management system upgrade," continuously attracting top technical talent, optimizing talent pipeline structure, improving professional skills training, and enhancing cross-departmental collaboration efficiency through refined management and process optimization, thereby elevating corporate governance, management, and operational levels. - The company will improve its internal lean operational ecosystem through a dual-track internal management optimization strategy of "talent efficiency enhancement and management system upgrade"[72] - Regarding talent efficiency enhancement, the company will continuously attract top technical talent and collaborate deeply with domestic universities to jointly cultivate hydrogen energy technology composite talents through school-enterprise cooperation, continuously optimizing the company's talent pipeline structure[72] - In terms of management system upgrade, the company will further improve its management system, enhance management and operational efficiency, and strengthen cross-departmental collaboration efficiency through refined management and process optimization[72] - Simultaneously, the company will improve its business risk management mechanisms to ensure operational compliance and efficient resource allocation, achieving a comprehensive enhancement of corporate governance, management, and operations[72] Other Information This section provides other relevant information, including major investments, employee details, IPO proceeds utilization, dividend policy, corporate governance, share repurchases, and post-reporting events. Major Investments and Acquisitions/Disposals During the reporting period, the Group held no major investments significantly impacting its operations and financial performance, nor did it undertake any major acquisitions or disposals of subsidiaries, associates, or assets. - During the reporting period, the Group held no major investments or events that had a significant impact on its operations and financial performance[73] - As of June 30, 2025, the Company had no specific plans for any major investments or acquisitions of capital assets[73] - During the reporting period, the Group did not undertake any major acquisitions or disposals of subsidiaries, associates, or assets[74] Employees and Remuneration Policy As of June 30, 2025, the Group had 358 full-time employees, a decrease from 511 at year-end 2024. The company values employee training, with remuneration policies varying by function, and employee benefits expenses for the reporting period were approximately RMB 54.2 million. - As of June 30, 2025, the Group had 358 full-time employees (December 31, 2024: 511), all located in China[75] - The company emphasizes employee training, providing safety production, fire safety, emergency medical training, and team-building activities[75] - Employee remuneration varies by function, including basic salary, bonuses, allowances, and performance incentives[75] - Employee benefits expenses (including Directors' remuneration) for the reporting period were approximately RMB 54.2 million (prior period: approximately RMB 105.8 million)[75] Use of Net Proceeds from Global Offering The company's H-shares were listed on December 5, 2023, with net proceeds from the global offering of approximately HKD 1,456.3 million. As of June 30, 2025, approximately HKD 62.7 million has been utilized, mainly for capacity expansion, R&D, team building, and working capital, with the remaining funds expected to be fully utilized by the end of 2026. Use of Net Proceeds from Global Offering | Use of Proceeds | Approximate percentage of total net proceeds (%) | Net proceeds from listing (HKD million) | Net proceeds remaining as of December 31, 2024 (HKD million) | Net proceeds utilized during the reporting period (HKD million) | Net proceeds remaining as of June 30, 2025 (HKD million) | Expected timeline for full utilization of remaining net proceeds | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Expanding production capacity for hydrogen fuel cell stacks and systems | 40 | 582.6 | 531.9 | 11.6 | 520.3 | By end of 2026 | | R&D of hydrogen fuel cell stacks, systems, and hydrogen production equipment | 20 | 291.3 | 270.0 | 15.4 | 254.6 | By end of 2026 | | Investing in upstream companies, potential acquisitions, or establishing partnerships | 10 | 145.6 | 145.6 | 0 | 145.6 | By end of 2026 | | Developing downstream transportation and stationary applications and establishing joint ventures | 10 | 145.6 | 129.5 | 0 | 129.5 | By end of 2026 | | Team building, talent recruitment and training, upgrading IT infrastructure | 10 | 145.6 | 134.6 | 10.0 | 124.6 | By end of 2026 | | Working capital and other general corporate purposes | 10 | 145.6 | 124.8 | 25.7 | 99.1 | By end of 2026 | | Total | 100 | 1,456.3 | 1,336.4 | 62.7 | 1,273.7 | | Dividend Policy The Board does not recommend the payment of an interim dividend for the reporting period. - The Board does not recommend the payment of an interim dividend for the reporting period[77] Corporate Governance The Company has adopted the Corporate Governance Code set out in Appendix C1 of the Listing Rules and complied with all applicable code provisions during the reporting period. The Board believes that the Chairman also serving as General Manager facilitates the execution of business strategies and enhances operational efficiency. - The Company has adopted the Corporate Governance Code set out in Appendix C1 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[78] - The Board appointed Mr. Chen Xiaomin as General Manager, effective February 28, 2025, who also serves as Chairman[79] - The Board believes that having the same individual serve as both Chairman and Chief Executive Officer facilitates the execution of the Company's business strategies and enhances its operational efficiency[79] - Except as disclosed, the Company has complied with all applicable code provisions set out in Part 2 of Appendix C1 of the Listing Rules during the reporting period[79] Share Repurchases During the reporting period, the Company repurchased a total of 894,500 H shares on the Stock Exchange for a total consideration of approximately HKD 8,559.85 thousand, demonstrating confidence in its business prospects, and holding the repurchased shares as treasury shares for purposes such as employee incentives. Repurchased H Shares Details | Month of Repurchase | Number of H shares repurchased | Highest price per share (HKD) | Lowest price per share (HKD) | Total consideration (HKD thousand) | | :--- | :--- | :--- | :--- | :--- | | January 2025 | 586,000 | 10.5 | 9.45 | 5,878.81 | | March 2025 | 26,500 | 9.09 | 8.8 | 237.89 | | April 2025 | 282,000 | 9.10 | 7.81 | 2,443.15 | - The Directors conducted the aforementioned H-share repurchases under the mandate approved by shareholders at the Annual General Meeting held on June 19, 2024, aiming to demonstrate the Company's confidence in its business prospects, which will benefit the Company and create value for shareholders in the long term[81] - All repurchased H shares are held by the Company as treasury shares, intended for purposes such as employee incentives, sale, or transfer to obtain liquidity[81] Standard Code for Securities Transactions The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules and confirmed that all Directors and Supervisors complied with the code during the reporting 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[82] - Following specific and reasonable inquiries with all Directors and Supervisors, the Company confirmed that all Directors and Supervisors complied with the provisions of the Model Code during the reporting period[82] Audit Committee Review The Audit Committee reviewed the Group's unaudited condensed interim financial results for the reporting period and discussed accounting principles, external auditor relationship, financial reporting system, internal controls, and risk management with management. - The Audit Committee reviewed with management, among other things, the accounting principles and practices adopted by the Group, the relationship and terms of engagement with the external auditors, the Company's financial reporting system, internal control, and risk management systems[83] - The Audit Committee reviewed the Group's unaudited condensed interim financial results for the reporting period[83] Election of Board and Supervisory Board and Management Changes The company completed the election of its second Board of Directors and Supervisory Board, appointed a new senior management team, with Mr. Chen Xiaomin serving concurrently as Chairman and General Manager. - The Company completed the election of its second Board of Directors and Supervisory Board, with shareholders approving all proposed elections of Directors and Supervisors at the extraordinary general meeting held on March 28, 2025[84] - The Board announced the appointment of the new senior management team, with Mr. Chen Xiaomin as General Manager, and Mr. Liu Zhixiang, Mr. Yan Xiqiang, Ms. Li Jing, Mr. Wang Jun, and Mr. Xiao Xin as Deputy General Managers of the Company[85] - Mr. Chen Xiaomin's concurrent roles as Chairman and General Manager of the Company are conducive to enhancing the efficiency of the Company's overall strategic planning[79] Proposed H-share Full Circulation The Company submitted an application to the CSRC for the conversion of 41,303,978 domestic shares held by 12 shareholders into H shares and received a filing notice, valid for 12 months from August 19, 2025. - The Company's Board of Directors reviewed and approved the conversion of 41,303,978 domestic shares held by 12 shareholders into H shares[86] - On August 19, 2025, the Company obtained a filing notice from the China Securities Regulatory Commission regarding its proposed H-share full circulation, which will be valid for 12 months from August 19, 2025[86] - The detailed implementation plan for the conversion and listing has not yet been finalized and is subject to other relevant procedures required by the CSRC, the Stock Exchange, and other relevant domestic and overseas regulatory authorities[87] Events After Reporting Period Except as disclosed elsewhere in this announcement, no other significant post-reporting events occurred after June 30, 2025, up to the date of this announcement. - Except as disclosed above, no other significant post-reporting events occurred after June 30, 2025, up to the date of this announcement[88] Publication of Announcement This announcement has been published on the HKEX website and the Company's website, and the 2025 interim report will be circulated and dispatched to shareholders in due course. - This announcement is published on the HKEX website (www.hkexnews.hk) and the Company's website (www.sinosynergypower.com)[89](index=89&type=chunk) - The Company will circulate and dispatch the 2025 interim report, containing all information required by the Listing Rules, to shareholders in due course, and it will also be published on the aforementioned websites[89]