容大科技(09881) - 2025 - 中期业绩

Interim Results Announcement Financial Performance Summary The company reported unaudited interim results for H1 2025, with revenue decreasing 10.4% to RMB 145,617 thousand and a net loss of RMB 6,398 thousand Financial Performance Summary for the Six Months Ended June 30 | Metric | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue | 145,617 | 162,491 | | Gross Profit | 39,582 | 43,871 | | (Loss)/Profit Before Income Tax | (8,805) | 15,014 | | (Loss)/Profit and Total Comprehensive Income for the Period Attributable to Owners of the Company | (6,398) | 14,413 | | Basic and Diluted (Loss)/Earnings Per Share (RMB per share) | (0.08) | 0.18 | | Adjusted Net Profit (Non-IFRS Measure) | 12,348 | 21,585 | Management Discussion and Analysis This section details the company's H1 2025 business performance, future strategies, financial position, and key risks, noting revenue decline due to external factors but stable gross margin through cost control Business Review Group revenue decreased 10.4% to RMB 145.6 million due to external factors, with stable gross margin at 27.2% despite product line declines - During the reporting period, the Group's revenue was approximately RMB 145.6 million, a decrease of approximately 10.4% compared to the same period in 2024[5] - The revenue decline was primarily due to external factors, including tighter import policies in Africa, geopolitical impacts in Europe, and customer project delays[5] - Sales of printing equipment, portable learning printers, traditional weighing scales, and POS terminals/PDAs all decreased, though growth in the US market partially offset the decline in POS terminal/PDA sales[5] - The Group's gross profit margin remained relatively stable at approximately 27.2%, primarily due to effective cost control and increased R&D investment to strengthen product competitiveness[5] Outlook The Group plans to enhance international supply chain resilience, strengthen technology integration, hedge regional volatility, and support strategic investments through capacity expansion, market penetration, product innovation, and financial control - Capacity: Continue to expand Malaysia production scale to enhance international supply chain resilience; Wuhan R&D center is expected to operate in 2026, strengthening IoT and AI technology integration[6] - Market Expansion: Deepen cooperation in Southeast Asia and the Middle East; promote AI weighing scales and industrial-grade printing equipment in Europe and America; advance domestic projects and increase promotion of hazardous waste products[6] - Product R&D: Iterate AI smart scales to integrate SaaS functions and develop modular POS terminals to adapt to emerging markets[6] - Financial Control: Strictly control accounts receivable, optimize financing costs; gearing ratio approximately 42.2% after listing, reserving approximately HKD 131.2 million net proceeds from global offering to support strategic investments[6] Revenue Group revenue decreased 10.4% to RMB 145.6 million due to slow project approvals and product specification changes, with declines across all product segments, notably POS terminals/PDAs down 23.2% - During the reporting period, revenue was approximately RMB 145.6 million, a decrease of approximately 10.4% compared to RMB 162.5 million in the same period of 2024[7] - The decrease in revenue was primarily due to slow approval progress for some customer projects and requests for further product specification improvements before delivery[7] Revenue by Product and Service Segment | Product Segment | 2025 (RMB '000) | 2024 (RMB '000) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Printing Equipment | 100,453 | 109,534 | -8.3% | | Weighing Scales | 24,034 | 27,133 | -11.4% | | POS Terminals and PDAs | 12,363 | 16,088 | -23.2% | | Accessories and Other Purchased Products | 7,877 | 8,716 | -9.7% | | Others | 890 | 1,020 | -12.7% | | Total | 145,617 | 162,491 | -10.4% | Cost of Sales Cost of sales decreased 10.6% to RMB 106.0 million, primarily due to effective cost control, leading to reductions in raw material, manufacturing, and transportation costs - During the reporting period, cost of sales was approximately RMB 106.0 million, a decrease of approximately 10.6% compared to RMB 118.6 million in the same period of 2024[13] - The decrease in cost of sales was primarily due to the Group's effective cost control, resulting in corresponding reductions in material, manufacturing, and transportation costs[13] Cost of Sales Details | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Raw materials cost | 84,875 | 100,974 | | Labor cost | 13,686 | 13,028 | | Direct production expenses | 1,714 | 1,915 | | Depreciation and amortization | 4,575 | 4,118 | | Impairment (reversal) of inventories | (429) | (2,660) | | Others | 1,614 | 1,245 | | Total | 106,035 | 118,620 | Gross Profit and Gross Profit Margin Gross profit decreased by RMB 4.3 million to RMB 39.6 million, but the gross profit margin remained stable at 27.2%, indicating effective cost management despite lower revenue - During the reporting period, gross profit was approximately RMB 39.6 million, a decrease of approximately RMB 4.3 million compared to the same period in 2024[14] - Gross profit margin remained relatively stable at approximately 27.2%, an increase of 0.2 percentage points compared to the same period in 2024[14] Other Income Other income decreased 19.2% to RMB 6.3 million, primarily due to a reduction in government grants, including R&D subsidies and VAT refunds - During the reporting period, other income was approximately RMB 6.3 million, a decrease of approximately 19.2% compared to the same period in 2024[15] - The decrease was primarily due to a reduction in government grants (including R&D-related grants and operating VAT refund grants)[15] Net Other Gains Net other gains increased 600.0% to RMB 0.7 million, mainly due to the absence of foreign exchange forward contract losses and higher gains from property, plant, and equipment disposals - During the reporting period, net gains of approximately RMB 0.7 million were recorded, an increase of approximately 600.0% compared to the same period in 2024[16] - The increase was primarily due to no foreign exchange forward contracts in H1 2025 and increased net gains from disposal of property, plant and equipment[16] Selling and Marketing Expenses Selling and marketing expenses increased 7.1% to RMB 13.6 million, driven by higher sales personnel costs, increased advertising for exhibitions, and greater e-commerce platform promotion fees - During the reporting period, selling and marketing expenses were approximately RMB 13.6 million, an increase of approximately 7.1% compared to the same period in 2024[17] - The increase was primarily due to increased labor costs for sales personnel, increased advertising and other marketing expenses (due to participation in more exhibitions), and increased service fees due to greater promotion efforts on e-commerce platforms[17] General and Administrative Expenses General and administrative expenses surged 80.5% to RMB 31.4 million, primarily due to non-recurring listing expenses incurred from the company's June 2025 listing on the Stock Exchange - During the reporting period, general and administrative expenses were approximately RMB 31.4 million, an increase of approximately 80.5% compared to the same period in 2024[18] - The increase was primarily due to non-recurring listing expenses incurred from the company's shares being listed on the Stock Exchange in June 2025[18] Research and Development Expenses R&D expenses increased 52.5% to RMB 9.3 million, mainly due to higher R&D staff numbers and benefits, coupled with reduced capitalization of R&D projects - During the reporting period, R&D expenses were approximately RMB 9.3 million, an increase of approximately 52.5% compared to the same period in 2024[19] - The increase was primarily due to an increase in the number of R&D employees and their benefits, as well as a decrease in the capitalization of R&D projects[19] Impairment Losses on Financial Assets (Provision)/Reversal Impairment losses on financial assets recorded a provision of RMB 79 thousand, a shift from a RMB 122 thousand reversal in 2024, primarily due to delayed customer settlements - During the reporting period, a provision for impairment losses on financial assets of RMB 79 thousand was recorded, compared to a reversal of impairment losses on financial assets of RMB 122 thousand in the same period of 2024[20] - The change was primarily due to delayed settlement of certain customer accounts during the reporting period[20] Finance Income and Costs Net finance costs increased 42.9% to RMB 1.0 million, primarily due to lower bank deposit interest income compared to higher USD deposit interest in the prior year - During the reporting period, net finance costs were approximately RMB 1.0 million, an increase of approximately 42.9% compared to the same period in 2024[21] - The increase was primarily due to a decrease in bank deposit interest income during the reporting period, whereas there was more interest income from USD deposits in the same period of 2024[21] - During the reporting period, an income tax credit of approximately RMB 2.4 million was recorded, compared to an income tax expense of approximately RMB 0.6 million in H1 2024, primarily due to the recognition of deferred tax assets from the Group's loss for the period[22] Net Profit and Net Profit Margin The Group's net profit shifted from a RMB 14.4 million profit to a RMB 6.4 million loss, with net profit margin declining from 8.9% to negative 4.4%, driven by listing expenses, reduced revenue, and increased R&D costs - The Group's net profit decreased from approximately RMB 14.4 million for the six months ended June 30, 2024, to an approximate loss of RMB 6.4 million for the reporting period[23] - The net profit margin decreased from approximately 8.9% to approximately negative 4.4%[23] - The decrease was primarily due to an increase in general and administrative expenses (due to listing expenses), decreased revenue, and increased R&D expenses[23] Adjusted Net Profit (Non-IFRS Measure) To better reflect core operations, the Group presents adjusted net profit (non-IFRS measure), excluding listing expenses, reporting RMB 12,348 thousand with an 8.5% adjusted net profit margin - The Group presents adjusted net profit and adjusted net profit margin as non-IFRS measures to exclude the impact of listing expenses and share-based payments[24] Adjusted Net Profit Reconciliation | Metric | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Profit for the period | (6,398) | 14,413 | | Add: Listing expenses | 18,746 | 7,172 | | Adjusted Net Profit (Non-IFRS Measure) | 12,348 | 21,585 | | Adjusted Net Profit Margin (Non-IFRS Measure) | 8.5% | 13.3% | Liquidity and Financial Resources The Group maintains prudent capital management, with cash and cash equivalents surging 1,897.4% to RMB 151.8 million due to global offering proceeds, facing fair value interest rate risk on borrowings and lease liabilities - The Group has adopted a prudent capital management policy to maintain a stable liquidity position[26] - As of June 30, 2025, the total cash and cash equivalents balance was approximately RMB 151.8 million, an increase of approximately 1,897.4% compared to December 31, 2024, primarily due to the proceeds from the global offering[26] - As of June 30, 2025, total equity was approximately RMB 307.1 million, a significant increase compared to approximately RMB 160.1 million as of December 31, 2024[27] Capital Expenditure Capital expenditure increased by RMB 23.6 million to RMB 35.4 million, primarily for the construction of the Malaysia production base, including land, construction, and equipment investments - During the reporting period, capital expenditure was approximately RMB 35.4 million, an increase of approximately RMB 23.6 million compared to the same period last year[28] - The increase was primarily due to investments in the construction of the Malaysia production base during the reporting period, including land, construction, and equipment investments[28] Capital Commitments As of June 30, 2025, the Group had no material capital commitments - The Group had no material capital commitments as of June 30, 2025[29] Borrowings As of June 30, 2025, the Group's bank borrowings totaled RMB 145.7 million, all due within two years at fixed interest rates, with RMB 140.0 million in undrawn bank facilities - As of June 30, 2025, the Group's total bank borrowings were approximately RMB 145.7 million, all of which are due within two years[30] - All outstanding bank borrowings bear fixed interest rates and are denominated in RMB[30] - As of June 30, 2025, the Group had undrawn bank facilities of approximately RMB 140.0 million[30] Lease Liabilities Lease liabilities decreased from RMB 0.2 million to RMB 0.1 million, primarily due to reduced balances from lease payments and associated interest - Lease liabilities decreased from approximately RMB 0.2 million as of December 31, 2024, to approximately RMB 0.1 million as of June 30, 2025[31] - The decrease was primarily due to reduced balances resulting from lease payments and related interest payments[31] Contingent Liabilities Excluding civil litigation disclosed in the prospectus and subsequent announcements, the Group had no material contingent liabilities as of June 30, 2025 - Excluding the civil litigation disclosed in the prospectus and announcements dated July 3, 2025, and July 25, 2025, the Group had no material contingent liabilities as of June 30, 2025[32] Employees and Remuneration Policies As of June 30, 2025, the Group had 653 employees with total employee benefit expenses of RMB 40.0 million, offering performance bonuses and an employee share scheme based on market and individual capabilities - As of June 30, 2025, the Group had 653 employees, and total employee benefit expenses for the reporting period were approximately RMB 40.0 million[33] - The Group established an employee share scheme since 2017, holding shares through two platforms, Xiamen Gaoli Hezhong and Xiamen Gaoli Zhongcheng, to recognize and incentivize employee contributions[34] Pledge of Assets Certain bank loans are secured by mortgages on the new Xiamen production base in Tongan District, Xiamen, China, with a total carrying value of approximately RMB 118.9 million as of June 30, 2025 - Certain bank loans of the Group are secured by mortgages on the new Xiamen production base located in Tongan District, Xiamen, China[35] - The total carrying value of the related pledged assets was approximately RMB 118.9 million as of June 30, 2025[35] Material Investments, Acquisitions and Disposals As of June 30, 2025, the Group had no material investments, acquisitions, or disposals, but post-period, a subsidiary agreed to acquire an industrial building in Shanghai for RMB 42,910,983, funded by internal resources - As of June 30, 2025, the Group did not hold any material investments, nor were there any material acquisitions or disposals of subsidiaries, associates, and joint ventures[36] - On July 30, 2025, the company's wholly-owned subsidiary agreed to acquire industrial buildings located at No. 172 and No. 173, Lane 3938, Huqingping Highway, Qingpu District, Shanghai, China, for RMB 42,910,983[37] - The total consideration for the acquisition will be funded by the Group's internal resources, and the proceeds from the global offering will not be used for payment[37] Gearing Ratio The Group's gearing ratio decreased to 42.2% from 52.5%, primarily due to increased shareholders' equity following the company's June 2025 listing on the Stock Exchange - The Group's gearing ratio was approximately 42.2% as of June 30, 2025, a decrease from approximately 52.5% as of December 31, 2024[38] - The decrease was primarily due to the increase in shareholders' equity as a result of the company's shares being listed on the Stock Exchange in June 2025[38] Currency Risk The Group faces foreign exchange risk from USD-denominated revenue/costs and HKD-denominated global offering proceeds, with no significant issues during the period, and management monitors and considers hedging without a current policy - The Group faces currency risk arising from revenue and certain costs denominated in foreign currencies (primarily USD) and proceeds from the global offering denominated in HKD[39] - During the reporting period, there were no significant difficulties or impacts on its operations or liquidity due to fluctuations in currency exchange rates[39] - The Group currently has no foreign exchange hedging policy, but management monitors foreign exchange risk and considers hedging when necessary[39] Significant Events After Reporting Period No significant events affecting the Group occurred from June 30, 2025, to the date of this announcement, other than those disclosed herein - Except as disclosed in this announcement, no significant events affecting the Group have occurred from June 30, 2025, up to the date of this announcement[40] Condensed Consolidated Interim Statement of Comprehensive Income For the six months ended June 30, 2025, the Group reported revenue of RMB 145,617 thousand, gross profit of RMB 39,582 thousand, an operating loss of RMB 7,801 thousand, and a total comprehensive loss of RMB 6,398 thousand Condensed Consolidated Interim Statement of Comprehensive Income (For the Six Months Ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue | 145,617 | 162,491 | | Cost of Sales | (106,035) | (118,620) | | Gross Profit | 39,582 | 43,871 | | Selling and Marketing Expenses | (13,556) | (12,668) | | General and Administrative Expenses | (31,365) | (17,428) | | Research and Development Expenses | (9,346) | (6,123) | | Impairment Losses on Financial Assets (Provision)/Reversal, Net | (79) | 122 | | Other Income | 6,259 | 7,812 | | Net Other Gains | 704 | 110 | | Operating (Loss)/Profit | (7,801) | 15,696 | | Net Finance Costs | (1,004) | (682) | | (Loss)/Profit Before Income Tax | (8,805) | 15,014 | | Income Tax Expense | 2,407 | (601) | | (Loss)/Profit and Total Comprehensive Income for the Period Attributable to Owners of the Company | (6,398) | 14,413 | | Basic and Diluted (Loss)/Earnings Per Share (RMB) | (0.08) | 0.18 | Condensed Consolidated Interim Statement of Financial Position As of June 30, 2025, total assets increased 57.6% to RMB 531,260 thousand, with total equity at RMB 307,057 thousand, total liabilities at RMB 224,203 thousand, and cash and cash equivalents significantly rising to RMB 151,779 thousand Condensed Consolidated Interim Statement of Financial Position (As of June 30) | Item | June 30, 2025 (RMB '000) | Dec 31, 2024 (RMB '000) | | :--- | :--- | :--- | | ASSETS | | | | Non-current assets | 183,506 | 156,254 | | Current assets | 347,754 | 180,874 | | TOTAL ASSETS | 531,260 | 337,128 | | EQUITY | | | | Total equity | 307,057 | 160,063 | | LIABILITIES | | | | Non-current liabilities | 17,908 | 31,883 | | Current liabilities | 206,295 | 145,182 | | TOTAL LIABILITIES | 224,203 | 177,065 | | TOTAL EQUITY AND LIABILITIES | 531,260 | 337,128 | - Cash and cash equivalents increased significantly from RMB 7,609 thousand as of December 31, 2024, to RMB 151,779 thousand as of June 30, 2025[42] Condensed Consolidated Interim Statement of Changes in Equity Total equity attributable to owners increased to RMB 307,057 thousand, driven by a RMB 167,992 thousand increase from share issuance upon listing, partially offset by a RMB 6,398 thousand loss and capitalized listing expenses Condensed Consolidated Interim Statement of Changes in Equity (For the Six Months Ended June 30) | Item | Share Capital (RMB '000) | Reserves (RMB '000) | Retained Earnings (RMB '000) | Total (RMB '000) | | :--- | :--- | :--- | :--- | :--- | | As of January 1, 2025 | 76,333 | 20,044 | 63,686 | 160,063 | | Loss for the period | – | – | (6,398) | (6,398) | | Shares issued upon listing | 18,400 | 149,592 | – | 167,992 | | Listing expenses capitalized after listing | – | (14,451) | – | (14,451) | | Foreign currency translation differences | – | (149) | – | (149) | | Balance as of June 30, 2025 | 94,733 | 155,036 | 57,288 | 307,057 | Condensed Consolidated Interim Statement of Cash Flows For H1 2025, net cash outflow from operating activities was RMB 31,027 thousand, net cash outflow from investing activities was RMB 36,883 thousand, and net cash inflow from financing activities was RMB 212,558 thousand, significantly increasing period-end cash to RMB 151,779 thousand Condensed Consolidated Interim Statement of Cash Flows (For the Six Months Ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Net Cash (Used in)/Generated from Operating Activities | (31,027) | 12,067 | | Net Cash Used in Investing Activities | (36,883) | (33,667) | | Net Cash Generated from Financing Activities | 212,558 | 24,307 | | Net Increase in Cash and Cash Equivalents | 144,648 | 2,707 | | Cash and Cash Equivalents at End of Period | 151,779 | 17,917 | - Net cash generated from financing activities increased significantly, primarily due to proceeds from the issuance of shares and other equity instruments of RMB 167,992 thousand[46] Notes to the Condensed Consolidated Interim Financial Statements This section provides detailed notes to the condensed consolidated interim financial statements, covering general information, basis of preparation, significant accounting policies, estimates, financial risk management, revenue and segment information, expenses, finance income and costs, income tax, earnings per share, dividends, asset details, and related party transactions 1 General Information of the Group Rongda United (Xiamen) Technology Group Co., Ltd., incorporated in China, manufactures and sells AIDC equipment, including printers, scales, POS terminals, and PDAs, with its shares listed on the HKEX Main Board since June 10, 2025 - The company primarily engages in the manufacturing and sale of automatic identification and data collection (AIDC) equipment in China, including specialized printers, weighing scales, point-of-sale (POS) terminals, and personal digital assistant (PDA) devices, as well as providing related solutions[47] - The company's shares have been listed on the Main Board of The Stock Exchange of Hong Kong Limited since June 10, 2025[48] 2 Basis of Preparation The condensed consolidated interim financial statements are prepared under IAS 34 'Interim Financial Reporting' and should be read with the 2024 annual financial statements, with consistent accounting policies except for new and revised standards adoption - The condensed consolidated interim financial statements are prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting'[51] - The accounting policies adopted in the preparation are consistent with those followed in the preparation of the 2024 financial statements, except for the adoption of new and revised standards[51] 3 Significant Accounting Policies Key accounting policies for these interim financial statements align with 2024, with the adoption of new/revised standards like IAS 21 (Amendment) 'Lack of Exchangeability' effective January 1, 2025, and other standards pending future effectiveness - The principal accounting policies adopted in the preparation of these condensed consolidated interim financial statements are consistent with those applied in the 2024 financial statements, except for the adoption of new and revised standards[52] - The Group adopted International Accounting Standard 21 (Amendment) 'Lack of Exchangeability', effective January 1, 2025[54][56] - New and revised standards that will be effective in future years include IFRS 9 and 7 (Amendments) 'Classification and Measurement of Financial Instruments' and 'Renewable Electricity Contracts', and IFRS 18 'Presentation and Disclosure in Financial Statements', among others[57] 4 Estimates Interim financial statement preparation requires management judgments, estimates, and assumptions, where actual results may differ, with key judgments and estimation uncertainties consistent with the 2024 financial statements - The preparation of interim financial statements requires management to make judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income, and expenses[58] - The significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those applied to the 2024 financial statements[58] 5 Financial Risk Management The Group faces market (currency, interest rate), credit, and liquidity risks, with unchanged risk management policies since year-end, managing credit risk on cash and receivables, liquidity through cash and financing, and fair value measurement using a three-level hierarchy and discounted cash flow for wealth management products - The Group's activities expose it to various financial risks: market risk (including currency risk and interest rate risk), credit risk, and liquidity risk[59] - The Group's risk management policies have not changed since the end of the prior year[60] - Credit risk primarily relates to cash and cash equivalents, trade and bills receivables, and other financial assets measured at amortized cost[61] - Liquidity risk is managed by maintaining sufficient cash and cash equivalents and is regularly monitored[68] - The fair value of wealth management products is estimated using the discounted cash flow method based on management's judgments and estimates of expected returns[74] 6 Revenue and Segment Information The Group primarily manufactures and sells AIDC equipment in China, recognizing revenue by product/service at a point in time, with China revenue at RMB 74,193 thousand and overseas at RMB 71,424 thousand, and contract liabilities mainly from non-refundable customer prepayments - The Group primarily engages in the manufacturing and sale of specialized printers, weighing scales, POS terminals, and PDA equipment, as well as providing related solutions in China[80] Revenue by Region (For the Six Months Ended June 30) | Region | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | China | 74,193 | 79,816 | | Overseas Countries | 71,424 | 82,675 | | Total | 145,617 | 162,491 | - Contract liabilities relate to non-refundable prepayments from the Group's customers, amounting to RMB 7,782 thousand as of June 30, 2025[82] 7 Expenses by Nature This section details expenses by nature, including raw materials, employee benefits, listing expenses, amortization, and depreciation, with total expenses incurred at RMB 163,178 thousand and RMB 160,302 thousand deducted from profit or loss after capitalizing development expenses Expenses by Nature Details (For the Six Months Ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Raw materials and consumables used | 84,883 | 97,815 | | Employee benefit expenses | 39,985 | 37,072 | | Listing expenses | 18,746 | 7,172 | | Amortisation of intangible assets | 3,297 | 2,916 | | Depreciation of property, plant and equipment | 2,162 | 2,127 | | Net reversal of impairment losses on inventories | (429) | (2,660) | | Total expenses incurred | 163,178 | 160,094 | | Less: Development expenditure capitalised in intangible assets | (2,876) | (5,255) | | Total expenses deducted from profit or loss | 160,302 | 154,839 | 8 Finance Income and Costs Finance income was RMB 259 thousand and finance costs were RMB 1,263 thousand, resulting in net finance costs of RMB 1,004 thousand, an increase from RMB 682 thousand in the prior period Finance Income and Costs (For the Six Months Ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Finance income | 259 | 673 | | Finance costs | (1,263) | (1,355) | | Net Finance Costs | (1,004) | (682) | 9 Income Tax Expense Income tax credit of RMB 2,407 thousand was recorded, compared to an expense of RMB 601 thousand in the prior period, mainly due to deferred tax asset recognition from the Group's loss, with the company enjoying a 15% high-tech enterprise tax rate and subsidiaries qualifying for small-profit enterprise tax benefits Income Tax Expense (For the Six Months Ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Current income tax expense | 404 | – | | Deferred income tax expense | (2,811) | 601 | | Total | (2,407) | 601 | - The company enjoys a high-tech enterprise preferential income tax rate of 15%, valid until 2026[88] - Chinese subsidiaries that qualify as "small-profit enterprises" enjoy preferential tax treatment, with taxable income reduced by 25% or 50% and corporate income tax paid at a 20% rate[89] 10 Earnings Per Share Loss attributable to owners was RMB 6,398 thousand, with a weighted average of 76,333 thousand ordinary shares outstanding, resulting in a basic and diluted loss per share of RMB 0.08 - The company had no potentially dilutive ordinary shares outstanding during the reporting period, so diluted earnings per share is equal to basic earnings per share[93] Earnings Per Share Calculation (For the Six Months Ended June 30) | Item | 2025 | 2024 | | :--- | :--- | :--- | | (Loss)/Profit attributable to owners of the Company (RMB '000) | (6,398) | 14,413 | | Weighted average number of ordinary shares in issue ('000 shares) | 76,333 | 78,167 | | Basic and diluted earnings per share (RMB) | (0.08) | 0.18 | 11 Dividends No dividends were paid, declared, or proposed for the six months ended June 30, 2025 (H1 2024: RMB 1,500,000) - No dividends were paid, declared, or proposed for the six months ended June 30, 2025 (for the six months ended June 30, 2024: RMB 1,500,000)[96] 12 Property, Plant and Equipment, Right-of-Use Assets, Investment Properties and Intangible Assets As of June 30, 2025, property, plant and equipment had a carrying value of RMB 84,203 thousand, and intangible assets RMB 22,600 thousand, with additions of RMB 6,379 thousand and RMB 2,876 thousand respectively during the period Property, Plant and Equipment, Right-of-Use Assets, Investment Properties and Intangible Assets Movement (As of June 30) | Item | Property, Plant and Equipment (RMB '000) | Right-of-Use Assets (RMB '000) | Investment Properties (RMB '000) | Intangible Assets (RMB '000) | | :--- | :--- | :--- | :--- | :--- | | As of January 1, 2025 | 84,444 | 4,682 | 39,953 | 23,021 | | Additions | 6,379 | – | – | 2,876 | | Depreciation/Amortisation | (2,162) | (108) | (502) | (3,297) | | Disposals | (4,458) | – | – | – | | As of June 30, 2025 | 84,203 | 4,574 | 39,451 | 22,600 | 13 Inventories As of June 30, 2025, total inventories were RMB 64,350 thousand, slightly lower than December 31, 2024, with a net reversal of inventory impairment of approximately RMB 429 thousand recognized during the period Inventories Details (As of June 30) | Item | June 30, 2025 (RMB '000) | Dec 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Raw Materials | 42,932 | 44,431 | | Work-in-Progress | 3,903 | 779 | | Finished Goods | 25,941 | 28,091 | | Less: Impairment Provision for Inventories | (8,426) | (8,855) | | Total | 64,350 | 64,446 | - For the six months ended June 30, 2025, a net reversal of impairment losses on inventories of approximately RMB 429 thousand was recognized[98] 14 Trade and Bills Receivables As of June 30, 2025, net trade and bills receivables decreased to RMB 57,730 thousand, with an impairment provision of RMB 485 thousand, and management regularly assesses recoverability based on historical and forward-looking data Trade and Bills Receivables Details (As of June 30) | Item | June 30, 2025 (RMB '000) | Dec 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Bills Receivable | 48 | 937 | | Trade Receivables - Third Parties | 58,167 | 65,641 | | Less: Impairment Provision | (485) | (412) | | Total | 57,730 | 66,166 | Aging Analysis of Trade Receivables (As of June 30) | Aging | June 30, 2025 (RMB '000) | Dec 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within 180 days | 57,895 | 64,198 | | 181 to 360 days | 234 | 1,306 | | Over 360 days | 38 | 137 | | Total | 58,167 | 65,641 | 15 Prepayments and Other Receivables As of June 30, 2025, prepayments and other receivables significantly increased to RMB 45,179 thousand, primarily due to higher prepaid expenses and advances for raw material purchases Prepayments and Other Receivables Details (As of June 30) | Item | June 30, 2025 (RMB '000) | Dec 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Prepaid Expenses | 26,741 | 1,593 | | Prepayments for Raw Material Purchases | 8,770 | 1,938 | | Recoverable VAT | 4,861 | 7,771 | | Recoverable Current Income Tax | 1,962 | – | | Other Receivables - Recoverable Deposits | 936 | 621 | | Prepaid Listing Expenses | – | 5,342 | | Others | 2,007 | 3,058 | | Less: Impairment Provision | (98) | (92) | | Total | 45,179 | 20,231 | 16 Financial Assets and Liabilities at Fair Value Through Profit or Loss As of June 30, 2025, the Group's financial assets at fair value through profit or loss primarily comprised wealth management products totaling RMB 27,216 thousand, generating RMB 118 thousand in gains during the period Financial Assets at Fair Value Through Profit or Loss (As of June 30) | Item | June 30, 2025 (RMB '000) | Dec 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Wealth Management Products | 27,216 | 22,422 | Wealth Management Products Movement (As of June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Beginning Balance | 22,422 | 11,504 | | Additions | 127,706 | 115,400 | | Disposals | (123,030) | (94,238) | | Gains on Financial Assets at Fair Value Through Profit or Loss | 118 | 1,119 | | Ending Balance | 27,216 | 33,785 | 17 Cash and Cash Equivalents and Restricted Cash As of June 30, 2025, total cash and cash equivalents were RMB 151,779 thousand, primarily denominated in HKD (RMB 134,263 thousand) and USD (RMB 11,699 thousand) Cash and Cash Equivalents Details (As of June 30) | Item | June 30, 2025 (RMB '000) | Dec 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Cash on Hand and Bank Balances | 149,550 | 6,955 | | Other Cash and Cash Equivalents | 2,229 | 654 | | Total | 151,779 | 7,609 | Cash and Cash Equivalents by Currency (As of June 30) | Currency | June 30, 2025 (RMB '000) | Dec 31, 2024 (RMB '000) | | :--- | :--- | :--- | | RMB | 4,406 | 6,881 | | USD | 11,699 | 687 | | HKD | 134,263 | – | | MYR | 1,158 | – | | Others | 253 | 41 | | Total | 151,779 | 7,609 | 18 Share Capital As of June 30, 2025, the company's issued and paid-up share capital was RMB 94,733 thousand, primarily due to the issuance of 18,400,000 ordinary shares on June 10, 2025, raising approximately HKD 185,555,681 Share Capital Movement Summary (As of June 30) | Item | Number of Shares | Share Capital (RMB '000) | | :--- | :--- | :--- | | As of January 1, 2025 | 76,333,000 | 76,333 | | - Shares issued upon listing | 18,400,000 | 18,400 | | Balance as of June 30, 2025 | 94,733,000 | 94,733 | - On June 10, 2025, the company issued 18,400,000 ordinary shares at a price of HKD 10.08 per share, raising total proceeds of approximately HKD 185,555,681[105] 19 Reserves As of June 30, 2025, total reserves were RMB 155,036 thousand, comprising capital, statutory, and share-based compensation reserves, with the increase mainly from capital reserves due to share issuance, partially offset by capitalized listing expenses and foreign currency translation differences Reserves Movement Summary (As of June 30) | Item | Capital Reserve (RMB '000) | Statutory Reserve (RMB '000) | Other Comprehensive Income (RMB '000) | Share-based Compensation (RMB '000) | Total (RMB '000) | | :--- | :--- | :--- | :--- | :--- | :--- | | As of January 1, 2025 | (8,946) | 16,025 | – | 12,965 | 20,044 | | Shares issued upon listing | 149,592 | – | – | – | 149,592 | | Listing expenses capitalized after listing | (14,451) | – | – | – | (14,451) | | Foreign currency translation differences | – | – | (149) | – | (149) | | As of June 30, 2025 | 126,195 | 16,025 | (149) | 12,965 | 155,036 | - Chinese subsidiaries are required to appropriate 10% of their annual statutory net profit to a statutory reserve fund, which can be used to offset prior year losses or be converted into share capital[107] 20 Trade Payables As of June 30, 2025, total trade payables decreased to RMB 38,374 thousand, with all amounts due within one year Trade Payables Details (As of June 30) | Item | June 30, 2025 (RMB '000) | Dec 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade Payables - Third Parties | 38,374 | 43,811 | - An aging analysis of trade payables by invoice date shows that all amounts are due within 1 year[108] 21 Accruals and Other Payables As of June 30, 2025, accruals and other payables decreased to RMB 20,107 thousand, mainly due to reductions in employee salaries, benefits, VAT, other taxes payable, and listing expenses payable Accruals and Other Payables Details (As of June 30) | Item | June 30, 2025 (RMB '000) | Dec 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Salaries and Welfare Payable to Employees | 7,690 | 9,510 | | Other Accrued Expenses and Payables | 6,741 | 2,502 | | VAT and Other Taxes Payable | 3,127 | 6,840 | | Listing Expenses Payable | 1,915 | 4,313 | | Payables for Property, Plant and Equipment Purchases | 436 | 439 | | Deferred Revenue - Current Portion | 198 | 198 | | Total | 20,107 | 23,802 | 22 Borrowings As of June 30, 2025, total borrowings were RMB 145,653 thousand (RMB 127,745 thousand current, RMB 17,908 thousand non-current), denominated in RMB at a fixed average annual interest rate of 2.24%, with some secured by land use rights, buildings, and investment properties totaling RMB 118,946 thousand Borrowings Details (As of June 30) | Item | June 30, 2025 (RMB '000) | Dec 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Non-current Borrowings | 17,908 | 31,379 | | Current Borrowings | 127,745 | 57,942 | | Total Borrowings | 145,653 | 89,321 | - The Group's bank borrowings are denominated in RMB and bear fixed interest rates, with average annual interest rates of 2.24% (2025) and 3.03% (2024) respectively[112] Assets Pledged as Collateral (As of June 30) | Item | June 30, 2025 (RMB '000) | Dec 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Property, Plant and Equipment | 75,061 | 76,025 | | Right-of-Use Assets | 4,434 | 4,483 | | Investment Properties | 39,451 | 39,953 | | Total | 118,946 | 120,461 | 23 Related Party Transactions The Group engaged in related party transactions with Mr. Xu Kaiming and Xiamen Rongxin, including RMB 4 thousand in interest income and RMB 1,500 thousand in loans to related parties, with RMB 1,500 thousand due from related parties and key management compensation of RMB 1,590 thousand - The Group's ultimate controlling shareholder is Mr. Xu Kaiming, and the ultimate controlling company is Xiamen Rongxin[115] Summary of Related Party Transactions (For the Six Months Ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Interest Income from Related Party: Xiamen Rongxin | 4 | 41 | | Loans to Related Party: Xiamen Rongxin | 1,500 | – | | Related Party Loan Repayment: Xiamen Rongxin | – | 32,533 | - As of June 30, 2025, amounts due from related parties (non-trade in nature) were RMB 1,500 thousand, representing unsecured short-term loans bearing interest at an annual rate of 3%[116] - For the six months ended June 30, 2025, key management compensation was approximately RMB 1,590 thousand[117] Directors', Supervisors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures As of June 30, 2025, Mr. Xu Kaiming held 32.04% beneficial interest and 39.49% controlled corporate interest, while Mr. Xu Kaihe held 2.38% beneficial and 1.07% controlled corporate interest, with a combined 38.53% interest with Mr. Xu Kaiming Directors', Supervisors' and Chief Executive's Interests in Shares (As of June 30, 2025) | Name | Nature of Interest | Number of Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Xu Kaiming | Beneficial Interest | 30,354,873(L) | 32.04% | | | Controlled Corporate Interest | 37,405,685(L) | 39.49% | | Mr. Xu Kaihe | Beneficial Interest | 2,250,953(L) | 2.38% | | | Controlled Corporate Interest | 1,016,717(L) | 1.07% | | | Jointly held interest with another person | 36,496,505(L) | 38.53% | - Mr. Xu Kaiming controls the relevant share interests through Xiamen Rongxin and Xiamen Gaoli Hezhong[120] - Mr. Xu Kaihe controls the relevant share interests through Xiamen Gaoli Zhongcheng and is presumed to be a group of controlling shareholders with Mr. Xu Kaiming[120] Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares As of June 30, 2025, Xiamen Rongxin held a 38.53% beneficial interest, and Ms. Lin Yaqiong (Mr. Xu Kaiming's spouse) was deemed to have an interest in shares held by Mr. Xu Kaiming, totaling approximately 71.53% Substantial Shareholders' Interests in Shares (As of June 30, 2025) | Name/Company Name | Nature of Interest | Number of Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Xiamen Rongxin | Beneficial Interest | 36,496,505(L) | 38.53% | | Ms. Lin Yaqiong | Spouse's Interest | 67,760,558(L) | 71.53% | - Ms. Lin Yaqiong is the spouse of Mr. Xu Kaiming, and under the Securities and Futures Ordinance, she is deemed to have an interest in the shares in which Mr. Xu Kaiming has an interest[125] Employee Share Scheme The Group established an employee share scheme in 2017 via Xiamen Gaoli Hezhong and Xiamen Gaoli Zhongcheng as employee shareholding platforms, with all related shares (approx. 2.03% of total issued shares) granted to eligible participants by this announcement date, and no further grants post-listing - The Group established an employee share scheme since 2017, through Xiamen Gaoli Hezhong and Xiamen Gaoli Zhongcheng as employee shareholding platforms[124] - As of the date of this announcement, all shares related to the employee share scheme (approximately 2.03% of the company's total issued shares) have been granted to eligible participants, and no further shares will be granted under the employee share scheme after listing[124] Use of Proceeds from Listing The company listed on June 10, 2025, raising net proceeds of approximately HKD 131.2 million, allocated for R&D (36.5%), production efficiency (33.4%), sales network expansion (20.1%), and working capital (10.0%), with all proceeds unutilized and held in interest-bearing accounts - The company was listed on June 10, 2025, and the net proceeds from the global offering, after deducting underwriting commissions, fees, and other expenses, were approximately HKD 131.2 million[127] Use of Proceeds from Listing and Expected Timeline | Purpose | Budget (HKD million) | Percentage of Net Proceeds (%) | Unutilized Net Proceeds as of June 30, 2025 (HKD million) | Expected Timeline for Utilizing Unutilized Net Proceeds | | :--- | :--- | :--- | :--- | :--- | | Conducting R&D Activities | 47.9 | 36.5 | 47.9 | December 2026 | | Enhancing Production Efficiency and Effectiveness | 43.8 | 33.4 | 43.8 | December 2027 | | Expanding Sales Network and International Presence | 26.4 | 20.1 | 26.4 | December 2027 | | Working Capital and General Corporate Purposes | 13.1 | 10.0 | 13.1 | December 2025 | | Total | 131.2 | 100.0 | 131.2 | – | - As of the date of this announcement, the unutilized net proceeds have been deposited into interest-bearing accounts with licensed commercial banks or financial institutions in China or Hong Kong[127] Material Litigation and Arbitration The company received a civil lawsuit on July 3, 2025, alleging trade secret infringement, with controlling shareholders agreeing to extend the lock-up period until the litigation concludes, and no other material litigation affecting operations during the reporting period - The company received a civil lawsuit issued by the Xiamen Intermediate People's Court of Fujian Province on July 3, 2025, alleging trade secret infringement[129] - The controlling shareholders have agreed to voluntarily extend the lock-up period for their shares held upon completion of the listing until the final conclusion of the possible legal proceedings related to the aforementioned civil lawsuit[129] - Except for the disclosures above, during the reporting period, the Group had no litigation or arbitration matters that had a material impact on its operating activities[129] Compliance with Corporate Governance Code The company adopted the Corporate Governance Code in Appendix C1 of the Listing Rules, with the Chairman and CEO roles combined under Mr. Xu Kaiming, an arrangement the Board believes provides strong leadership and will be continuously reviewed, otherwise complying with all applicable code provisions since listing - The company has adopted the Corporate Governance Code set out in Appendix C1 to the Listing Rules[130] - Mr. Xu Kaiming serves as both Chairman and Chief Executive Officer, an arrangement the Board believes provides strong and consistent leadership, and the Board will continue to consider separating the roles at an appropriate time[130] - Save for the aforementioned deviation, to the best knowledge of the Directors, the company has complied with all applicable code provisions set out in Part 2 of the Corporate Governance Code from the listing date up to the date of this announcement[130] Purchase, Sale or Redemption of the Company's Listed Securities Neither the company nor its subsidiaries purchased, sold, or redeemed any of its listed securities from the listing date to June 30, 2025, and the company held no treasury shares as of June 30, 2025 - During the period from the listing date up to June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's securities[132] - As of June 30, 2025, the company did not hold any treasury shares[132] Directors', Supervisors' and Controlling Shareholders' Interests in Competing Businesses No directors, supervisors, controlling shareholders, or their associates held interests in any business directly or indirectly competing with the company's business during the six months ended June 30, 2025, up to the announcement date - At no time during the six months ended June 30, 2025, and up to the date of this announcement, did any director, supervisor, or controlling shareholder, or their respective associates, have any interest in any business that competes or competed, or is or was likely to compete, directly or indirectly with the business of the company[133] Review of Interim Results The Board's Audit Committee reviewed the Group's unaudited condensed consolidated interim financial results for the reporting period, confirming compliance with relevant accounting standards, rules, regulations, and appropriate disclosures - The Board's Audit Committee has considered and reviewed the accounting principles and practices adopted by the Group and has discussed financial reporting matters with management, including reviewing the Group's unaudited condensed consolidated interim financial results for the reporting period[134] - The Audit Committee believes that the interim financial results for the reporting period comply with the relevant accounting standards, rules, and regulations, and that appropriate disclosures have been made[134] Continuing Disclosure Obligations under Listing Rules From the listing date to the end of the reporting period, the company had no other disclosure obligations under Listing Rules 13.20, 13.21, and 13.22 - From the listing date to the end of the reporting period, the company had no other disclosure obligations under Listing Rules 13.20, 13.21, and 13.22[135] Publication of Interim Results Announcement and 2025 Interim Report This interim results announcement is published on the Stock Exchange and company websites, and the 2025 interim report will be published on both websites in due course - This interim results announcement is published on the Stock Exchange website (www.hkexnews.hk) and the company's website (www.rongtatech.cn)[136](index=136&type=chunk) - The company will publish its 2025 interim report in due course and will make it available on the Stock Exchange website and the company's website[136]