蓝思科技(06613) - 2025 - 中期业绩

Financial Highlights Financial Highlights Overview The company reported significant increases in total revenue, gross profit, and net profit attributable to owners of the parent, alongside an interim cash dividend proposal Key Financial Data for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Growth (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 32,960.16 | 28,866.65 | 14.18% | | Gross Profit | 4,304.61 | 3,653.66 | 17.82% | | Net Profit Attributable to Owners of the Parent | 1,142.69 | 861.26 | 32.68% | | Cash Dividend per 10 Shares | RMB 1.00 (tax inclusive) | - | - | Condensed Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income During the reporting period, the company's revenue and profit both grew, with profit for the period at RMB 1,194,275 thousand and total comprehensive income at RMB 1,165,018 thousand Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 32,960,158 | 28,866,649 | | Gross Profit | 4,304,610 | 3,653,655 | | Profit Before Tax | 1,245,648 | 787,389 | | Profit for the Period | 1,194,275 | 880,945 | | Profit for the Period Attributable to Owners of the Company | 1,142,689 | 861,262 | | Total Comprehensive Income for the Period | 1,165,018 | 800,954 | | Basic Earnings Per Share (RMB) | 0.23 | 0.17 | Condensed Consolidated Statement of Financial Position As of June 30, 2025, the company's non-current assets increased, while current assets and current liabilities both decreased, leading to a reduction in net current assets Summary of Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current Assets | 52,575,732 | 50,243,266 | | Current Assets | 24,677,823 | 30,772,781 | | Current Liabilities | 22,305,454 | 23,065,161 | | Net Current Assets | 2,372,369 | 7,707,620 | | Net Assets | 47,995,837 | 48,845,910 | Notes to the Condensed Consolidated Financial Statements 1. General Information Lens Technology Co., Ltd. was incorporated in China, listed on the Shenzhen Stock Exchange in 2015, and its H-shares were listed on the Hong Kong Stock Exchange from July 9, 2025, with the Group primarily engaged in R&D, design, manufacturing, and sales of structural and functional modules, as well as consumer electronics assembly, smart automotive, and other emerging businesses - The company's H-shares were listed on the Main Board of the Hong Kong Stock Exchange on July 9, 2025[10] - The Group's principal business covers R&D, design, manufacturing, and sales of structural components and functional modules, along with consumer electronics assembly, smart automotive, and other emerging sectors[10] 2. Basis of Preparation and Accounting Policies The condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 and the Listing Rules of the Stock Exchange, with the first-time application of amendments to IAS 21 having no significant impact on financial position or performance - The financial statements are prepared in accordance with International Accounting Standard 34 and the Listing Rules of the Stock Exchange[11] - The first-time application of amendments to International Accounting Standard 21, 'Lack of Exchangeability', had no significant impact on the financial position and performance[12] 5. Revenue and Segment Information Total revenue for the period was RMB 32,960.16 million, primarily from smart devices and computers, with significant contributions also from smart automotive and cockpit, smart wearables, and other smart terminal businesses, and the company operates as a single operating and reportable segment Revenue Analysis by Major End Products and Services | Revenue Source | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Smart Devices and Computers | 27,184,821 | 24,015,935 | | Smart Automotive and Cockpit | 3,164,660 | 2,717,527 | | Smart Head-mounted Displays and Wearables | 1,646,553 | 1,435,012 | | Other Smart Terminals | 363,606 | 159,334 | | Other | 600,518 | 538,841 | | Total | 32,960,158 | 28,866,649 | - The company operates as a single operating and reportable segment[14] 6. Other Income Other income for the period was RMB 310,463 thousand, primarily comprising government grants and interest income, with a significant increase in government grants Composition of Other Income | Other Income Source | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Government Grants | 142,156 | 101,481 | | Interest Income | 124,091 | 129,876 | | Compensation Income | 13,875 | 14,390 | | Other | 30,341 | 36,163 | | Total | 310,463 | 281,910 | 7. Net Other Gains and Losses Net other gains and losses for the period amounted to RMB 255,142 thousand, primarily driven by a substantial increase in net foreign exchange gains Composition of Net Other Gains and Losses | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Foreign Exchange Gains | 167,973 | 30,357 | | Net Fair Value Gains from Financial Assets/Liabilities at Fair Value Through Profit or Loss | 74,180 | 110,083 | | Gains (Losses) on Disposal of Property, Plant and Equipment and Intangible Assets | 13,675 | (10,856) | | Other | (686) | — | | Total | 255,142 | 129,584 | 8. Income Tax Expense (Credit) Income tax expense for the period was RMB 51,373 thousand, compared to an income tax credit in the prior period, primarily due to increased profit before tax, with some Chinese subsidiaries enjoying a 15% preferential tax rate as high-tech enterprises Composition of Income Tax Expense (Credit) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current Tax | 63,315 | 123,024 | | Under-provision in Prior Years | 23,251 | 2 | | Deferred Tax Credit | (35,193) | (216,582) | | Total | 51,373 | (93,556) | - The company and certain Chinese subsidiaries are certified as high-tech enterprises, enjoying a 15% preferential tax rate[17] 9. Dividends The Board approved an interim dividend of RMB 0.10 per ordinary share (tax inclusive) for 2025, totaling RMB 526,023 thousand, expected to be paid on or before October 24, 2025 - The Board approved an interim dividend of RMB 0.10 per ordinary share (tax inclusive) for 2025, totaling RMB 526,023 thousand[19] - The 2024 final dividend of RMB 1,983,582 thousand (RMB 0.40 per share) was declared and paid during the current period[19] 10. Earnings Per Share Basic and diluted earnings per share attributable to owners of the company for the period were both RMB 0.23, an increase from RMB 0.17 in the prior period Earnings Per Share | Indicator | 2025 (RMB) | 2024 (RMB) | | :--- | :--- | :--- | | Basic Earnings Per Share | 0.23 | 0.17 | | Diluted Earnings Per Share | 0.23 | 0.17 | 11. Financial Assets (Liabilities) at Fair Value Through Profit or Loss As of June 30, 2025, total financial assets at fair value through profit or loss significantly increased to RMB 1,242,678 thousand, primarily comprising structured deposits and unlisted investments Financial Assets (Liabilities) at Fair Value Through Profit or Loss | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Structured Deposits | 1,081,917 | 354,917 | | Unlisted Investments at Fair Value Through Profit or Loss | 138,443 | — | | Deliverable Forward Contracts | (15,432) | (9,620) | | Listed Equity Securities | 589 | — | | Total | 1,205,517 | 345,297 | | Financial Assets at Fair Value Through Profit or Loss | 1,242,678 | 354,917 | | Financial Liabilities at Fair Value Through Profit or Loss | (37,161) | (9,620) | 12. Trade and Bills Receivables As of June 30, 2025, total trade and bills receivables amounted to RMB 8,754,981 thousand, a decrease from the end of 2024, with the largest portion being non-overdue amounts Trade and Bills Receivables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables | 8,877,537 | 11,006,529 | | Less: Provision for Expected Credit Losses | (123,393) | (148,312) | | Total | 8,754,981 | 10,865,736 | Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Not Overdue | 8,631,198 | 10,610,390 | | Overdue 0-90 Days | 187,242 | 363,411 | | Overdue 91-180 Days | 33,428 | 9,396 | | Overdue 181-365 Days | 15,957 | 4,236 | | Overdue Over One Year | 9,712 | 19,096 | 13. Prepayments and Other Receivables As of June 30, 2025, total prepayments and other receivables increased to RMB 2,206,002 thousand from the end of 2024, primarily comprising recoverable VAT and prepayments for property, plant, and equipment Composition of Prepayments and Other Receivables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Recoverable VAT | 586,999 | 344,998 | | Prepayments for Property, Plant and Equipment | 928,579 | 1,020,338 | | Prepayments for Materials and Other | 148,792 | 174,304 | | Refundable Deposits for Land Use Rights | 200,000 | 200,000 | | Refundable Deposits for Project Performance | 150,000 | 150,000 | | Other Receivables | 157,873 | 141,181 | | Total | 2,206,002 | 2,038,769 | 14. Trade and Other Payables As of June 30, 2025, total trade and other payables decreased to RMB 15,578,880 thousand from the end of 2024, with trade payables constituting the largest portion Composition of Trade and Other Payables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Payables | 9,363,757 | 10,388,566 | | Construction Payables | 3,895,189 | 3,616,325 | | Accrued Staff Costs | 1,440,892 | 1,532,142 | | Total | 15,578,880 | 16,365,834 | 15. Borrowings During the period, the Group repaid borrowings of RMB 2,009,811 thousand, with floating-rate bank borrowings bearing interest at the Loan Prime Rate, subject to certain upward or downward adjustments - Borrowings of RMB 2,009,811 thousand were repaid during the period, a decrease from RMB 2,872,598 thousand in the prior period[25] - Floating-rate bank borrowings bear interest at the Loan Prime Rate, with interest rates reset every 1 to 12 months[25] 16. Share Capital As of June 30, 2025, the company's share capital was RMB 4,982,772 thousand, slightly reduced due to the repurchase and cancellation of restricted A-shares under the restricted share scheme Changes in Share Capital | Item | June 30, 2025 (Number of Shares) | June 30, 2025 (RMB thousand) | | :--- | :--- | :--- | | Registered, Issued and Fully Paid Ordinary Shares | 4,982,772,171 | 4,982,772 | | Repurchase and Cancellation of Restricted A-shares | (107,100) | (107) | 17. Events After the Reporting Period Subsequent to the reporting period, the company's H-shares were listed on the Stock Exchange on July 9, 2025, with a total of 301,595,200 ordinary shares issued through public offering and overallotment - The company's H-shares were listed on the Stock Exchange on July 9, 2025[27] - A total of 301,595,200 ordinary shares were issued through public offering and overallotment[27] Management Discussion and Analysis I. Industry Development During the Reporting Period AI technology is profoundly empowering consumer electronics, smart cockpits, and embodied AI, driving market demand growth and industrial upgrading, with the company actively seizing market opportunities through its full-产业链 integration capabilities and innovative products - AI empowers innovation in consumer electronics terminals, with Canalys projecting AI smartphone penetration to rise from 34% in 2025 to 54% in 2028[28] - The smart cockpit sector is undergoing multimodal interaction innovation, with China Business Industry Research Institute forecasting the passenger vehicle smart cockpit market to exceed RMB 156.4 billion in 2025[29] - The embodied AI industry has entered its first year of scaled growth, with Gaogong Robot predicting the global embodied AI market to reach RMB 6.339 billion in 2025 and potentially surpass RMB 400 billion by 2035[30] II. Group's Operating Performance In H1 2025, the company's operations progressed steadily, achieving significant growth in both operating revenue and net profit attributable to owners of the parent, with the H-share listing raising capital for global expansion and product portfolio optimization, and all major business segments maintaining growth - The company's H-shares were listed on the Main Board of the Hong Kong Stock Exchange, raising capital for global expansion and optimizing the product portfolio[32] Operating Performance for H1 2025 | Indicator | H1 2025 (RMB million) | YoY Growth (%) | | :--- | :--- | :--- | | Operating Revenue | 32,960.16 | 14.18% | | Net Profit Attributable to Owners of the Parent | 1,142.69 | 32.68% | | Net Profit Attributable to Owners of the Parent (Excluding Non-recurring Items) | 940.08 | 41.85% | | Basic Earnings Per Share | RMB 0.23 | 35.29% | 1. Smart Devices and Computers This business segment achieved significant revenue growth, with the company solidifying its leading position in the market for appearance parts, structural components, and functional modules, and successfully mass-producing metal frames for multiple high-end models Revenue from Smart Devices and Computers Business | Business Segment | H1 2025 Revenue (RMB million) | YoY Growth (%) | | :--- | :--- | :--- | | Smart Devices and Computers | 27,184.82 | 13.19% | - The company solidified its leading position in the market for appearance parts, structural components, and functional modules, including glass, ceramics, sapphire, and metal[32] - In collaboration with leading clients, the company mass-produced metal frames for several new high-end models, achieving rapid growth in market share and profitability[32] 2. Smart Automotive and Cockpit Revenue from smart automotive and cockpit business grew, with core product lines achieving synergistic volume production, and ultra-thin laminated car window glass successfully integrated into new vehicle models of leading automakers Revenue from Smart Automotive and Cockpit Business | Business Segment | H1 2025 Revenue (RMB million) | YoY Growth (%) | | :--- | :--- | :--- | | Smart Automotive and Cockpit | 3,164.66 | 16.45% | - Core product lines such as central control modules, smart B/C pillars, charging piles, cockpit decorative parts, and wireless charging modules achieved synergistic volume production, with communication modules and domain controllers realizing batch delivery[33] - Ultra-thin laminated car window glass was successfully integrated into the mass production system of new models for leading domestic automakers, with capacity expansion initiated based on customer demand[33] 3. Smart Head-mounted Displays and Wearables Revenue from smart head-mounted displays and wearables grew, with the company achieving breakthroughs in core processes such as optical waveguide lens yield optimization and high-precision automated assembly, and successfully mass-producing AI glasses Revenue from Smart Head-mounted Displays and Wearables Business | Business Segment | H1 2025 Revenue (RMB million) | YoY Growth (%) | | :--- | :--- | :--- | | Smart Head-mounted Displays and Wearables | 1,646.55 | 14.74% | - Breakthroughs were achieved in core process areas such as optical waveguide lens yield optimization and high-precision automated assembly[34] - Successfully achieved large-scale mass production and delivery of complete AI glasses for leading domestic clients[34] 4. Other Smart Terminals Revenue from other smart terminals achieved significant growth, with substantial progress in collaborations with leading domestic and international embodied AI enterprises, and batch delivery of core components and complete machine assembly Revenue from Other Smart Terminals Business | Business Segment | H1 2025 Revenue (RMB million) | YoY Growth (%) | | :--- | :--- | :--- | | Other Smart Terminals | 363.61 | 128.2% | - Substantial progress was made in collaborations with leading domestic and international embodied AI enterprises, achieving batch delivery of core components such as joint modules, dexterous hands, and exoskeleton devices, as well as complete machine assembly[35] - Revenue from the smart retail product line significantly increased year-on-year, forming diversified growth engines[35] III. Financial Review This section provides a detailed review of changes in various financial indicators during the reporting period, including revenue, gross profit, expenses, net other gains and losses, reversal of impairment losses, and income tax expense, along with explanations for key variations Revenue Total revenue increased by 14.18% year-on-year during the reporting period, primarily driven by comprehensive growth across smart devices and computers, smart automotive and cockpit, smart wearables, and other smart terminal businesses Revenue Growth Details | Business Segment | H1 2025 Revenue (RMB million) | YoY Growth (%) | | :--- | :--- | :--- | | Total Revenue | 32,960.16 | 14.18% | | Smart Devices and Computers | Increased by 3,168.89 | 13.19% | | Smart Automotive and Cockpit | Increased by 447.13 | 16.45% | | Smart Head-mounted Displays and Wearables | Increased by 211.54 | 14.74% | | Other Smart Terminals | Increased by 204.27 | 128.2% | Gross Profit and Gross Margin Gross profit increased by 17.82% year-on-year during the reporting period, with gross margin improving by 0.40 percentage points to 13.06%, reflecting enhanced profitability Changes in Gross Profit and Gross Margin | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Growth (%) | | :--- | :--- | :--- | | Gross Profit | 4,304.61 | 3,653.66 | 17.82% | | Gross Margin | 13.06% | 12.66% | 0.40pp | Other Income Other income increased by 10.13% year-on-year during the reporting period, primarily due to an increase in government grants Changes in Other Income | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Growth (%) | | :--- | :--- | :--- | | Other Income | 310.46 | 281.91 | 10.13% | - Primarily due to an increase in government grants[39] Selling Expenses Selling expenses decreased by 10.91% year-on-year during the reporting period, primarily due to reductions in intermediary service fees, sample and packaging costs, and sorting fees Changes in Selling Expenses | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | | Selling Expenses | 281.77 | 316.29 | -10.91% | - Primarily due to a decrease in intermediary service fees, sample and packaging costs, and sorting fees[40] Administrative Expenses Administrative expenses increased by 5.31% year-on-year during the reporting period, primarily due to higher staff remuneration and professional service fees Changes in Administrative Expenses | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Growth (%) | | :--- | :--- | :--- | | Administrative Expenses | 1,568.07 | 1,489.01 | 5.31% | - Primarily due to an increase in staff remuneration and professional service fees[41] Research and Development Expenses Research and development expenses increased by 29.15% year-on-year during the reporting period, primarily due to increased investment in R&D for new projects, products, and areas Changes in Research and Development Expenses | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Growth (%) | | :--- | :--- | :--- | | Research and Development Expenses | 1,643.86 | 1,272.82 | 29.15% | - Primarily due to increased R&D investment in new projects, new products, and new areas[42] Finance Costs Finance costs decreased by 21.50% year-on-year during the reporting period, primarily due to the repayment of certain bank loans, including both long-term and short-term borrowings Changes in Finance Costs | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | | Finance Costs | 155.86 | 198.55 | -21.50% | - Primarily due to the repayment of certain bank loans, including both long-term and short-term borrowings[43] Net Other Gains and Losses Net other gains and losses increased by 96.90% year-on-year during the reporting period, primarily due to increased net foreign exchange gains from USD to RMB settlements Changes in Net Other Gains and Losses | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Growth (%) | | :--- | :--- | :--- | | Net Other Gains and Losses | 255.14 | 129.58 | 96.90% | - Primarily due to increased net foreign exchange gains from USD to RMB settlements[44] Net Reversal of Impairment Losses under Expected Credit Loss Model Net reversal of impairment losses significantly increased by 1,483.75% during the reporting period, primarily due to higher collection amounts compared to the prior period Changes in Net Reversal of Impairment Losses | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Growth (%) | | :--- | :--- | :--- | | Net Reversal of Impairment Losses | 25.34 | 1.60 | 1,483.75% | - Primarily due to an increase in collection amounts compared to the prior period[45] Income Tax Expense Income tax expense for the period was RMB 51.37 million, compared to an income tax benefit in the prior period, primarily due to increased profit before tax Changes in Income Tax Expense (Benefit) | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Income Tax Expense (Benefit) | 51.37 (Expense) | (93.56) (Benefit) | - Primarily due to an increase in profit before tax[46] Cash Flow Analysis Net cash from operating activities significantly increased during the reporting period, while net cash used in investing and financing activities also increased, reflecting the impact of revenue growth, increased accounts receivable collection, asset purchases, and no new borrowings Net Cash Generated from Operating Activities Net cash generated from operating activities increased by 28.43% year-on-year during the reporting period, primarily due to increased revenue and higher collection of opening trade receivables Changes in Net Cash Generated from Operating Activities | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Growth (%) | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 4,325.28 | 3,367.72 | 28.43% | - Primarily due to increased revenue and higher collection of opening trade receivables[47] Net Cash Used in Investing Activities Net cash used in investing activities increased by 109.28% year-on-year during the reporting period, primarily due to increased payments for property, plant, and equipment and purchases of structured deposits Changes in Net Cash Used in Investing Activities | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Growth (%) | | :--- | :--- | :--- | | Net Cash Used in Investing Activities | 5,020.38 | 2,398.91 | 109.28% | - Primarily due to increased payments for property, plant, and equipment and purchases of structured deposits[48] Net Cash Used in Financing Activities Net cash used in financing activities increased by 19.62% year-on-year during the reporting period, primarily due to no new borrowings raised in the current period Changes in Net Cash Used in Financing Activities | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Growth (%) | | :--- | :--- | :--- | | Net Cash Used in Financing Activities | 4,205.50 | 3,515.57 | 19.62% | - Primarily due to no new borrowings raised in the current period[49] Liquidity and Sources of Working Capital The Group's primary sources of liquidity are cash generated from operating activities and bank borrowings; as of June 30, 2025, current assets decreased, and the current ratio declined to approximately 1.11, but the company is committed to maintaining optimal liquidity to meet operational needs - Primary sources of liquidity include cash generated from operating activities and bank borrowings[50] Liquidity Position | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Current Assets | 24,677.82 | 30,772.78 | Decrease | | Current Ratio | 1.11 | 1.33 | Decline | Foreign Exchange Risk Management The company manages foreign exchange risk by closely monitoring foreign currency exchange rate fluctuations and may employ hedging instruments such as derivatives; net foreign exchange gains of RMB 167.97 million were recorded during the reporting period - The company manages foreign exchange risk by closely monitoring foreign currency exchange rate fluctuations and may employ hedging instruments such as forward, option, and swap contracts[51] - Net foreign exchange gains of RMB 167.97 million were recorded during the reporting period[51] Contingent Liabilities As of June 30, 2025, the company had no material contingent liabilities, guarantees, or pending litigations - As of June 30, 2025, there were no material contingent liabilities, guarantees, or any pending or threatened material litigation or claims against any member of the Group[52] Capital Expenditure and Commitments Capital expenditure for the period was approximately RMB 4,297.12 million, primarily for the purchase of property, plant, and equipment and land leases; as of June 30, 2025, total capital commitments were approximately RMB 2,640.37 million Capital Expenditure | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Capital Expenditure | 4,297.12 | 2,936.65 | Capital Commitments | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Total Capital Commitments | 2,640.37 | 2,217.42 | Non-IFRS Measures The company uses adjusted profit for the period and adjusted net profit margin as non-IFRS measures to better compare operating performance across different periods; adjusted profit for H1 2025 was RMB 1,224.2 million, with an adjusted net profit margin of 3.7% - The company uses adjusted profit for the period and adjusted net profit margin as non-IFRS measures to eliminate the impact of non-cash items such as share-based payments, aiding in the understanding and evaluation of interim financial information[55] Non-IFRS Measures | Indicator | January-June 2025 (RMB thousand) | January-June 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit for the Period | 1,194,275 | 880,945 | | Add: Share-based Payments | 29,967 | 94,412 | | Adjusted Profit for the Period | 1,224,242 | 975,357 | | Adjusted Net Profit Margin | 3.7% | 3.4% | IV. Prospects and Outlook Prospects and Outlook Overview The company will seize AI-driven smart terminal upgrade opportunities, deepen precision manufacturing and material innovation, continuously expand business boundaries in smart devices, smart automotive, smart wearables, and other smart terminal sectors, and build diversified growth engines through global layout, vertical integration, and technological R&D - The company is seizing the opportunity of the AI-driven smart terminal upgrade wave, deeply empowering the edge-side model hardware ecosystem with precision manufacturing and material innovation[58] - In the future, the company will continue to deepen its global production capacity layout, accelerate overseas base construction leveraging its Hong Kong listing; strengthen its vertical integration advantages in materials, modules, and complete machines; and enrich its high-value-added product matrix[59] - R&D will focus on cutting-edge areas such as full-color optical waveguides, lightweight new metal materials, and core technologies for smart terminals[59] 1. Smart Devices Sector Leveraging its deep technical expertise in foldable screen UTG and mass production capabilities, the company innovatively launched a multi-layer structural design to effectively eliminate creases, and is benefiting from the rapid increase in demand for new 3D glass - Leveraging deep technical expertise in foldable screen UTG and mass production capabilities, the company innovatively launched a multi-layer structural design for foldable screens, effectively eliminating creases and enhancing screen flatness[58] - Demand for new 3D glass is rapidly increasing, with high growth expected in the coming years, and the company will continue to benefit from the incremental opportunities brought by this round of technological innovation[58] 2. Smart Cockpit Sector The company has established collaborations with over 30 leading domestic and international automotive enterprises, expanding its automotive business boundaries, achieving new business breakthroughs in automotive communication modules and domain controllers, with ultra-thin laminated glass expected to bring significant incremental growth - Collaborations have been established with over 30 leading domestic and international automotive enterprises, including major North American clients, expanding automotive business boundaries and achieving new business breakthroughs in automotive communication modules and domain controllers[58] - The developed automotive ultra-thin laminated glass features lightweight, sound insulation, heat insulation, HUD projection, and photochromic shading functions, which will continue to bring significant incremental growth to the company's automotive business[58] 3. Smart Wearables Sector As a complete machine assembly partner for renowned domestic clients, the company covers the entire production process from optical lenses and functional modules to complete machines, applying core technologies such as self-developed nanocrystalline glass, with future optical modules and optical waveguide lenses expected to be gradually introduced and achieve volume production - As a complete machine assembly partner for renowned domestic clients, the company covers the entire production process from optical lenses and functional modules to complete machines[58] - Applying core technologies such as self-developed nanocrystalline glass, product performance and lightweighting levels are significantly enhanced[58] - It is expected that the gradual introduction and volume production of the company's optical-related modules and optical waveguide lenses will effectively address industry bottlenecks in the future[58] 4. Other Smart Terminals Sector The company is collaborating with clients to establish an embodied AI innovation center, aiming to build China's largest core manufacturing platform for embodied AI hardware, and continuously expanding into the smart retail payment terminal market to strengthen diversified growth contributions - Collaborating with clients to establish an embodied AI innovation center, focusing on core R&D for data acquisition and secondary development, key modules such as joint motors, and iterative motion control algorithms[59] - The goal is to build China's largest highly vertically integrated core manufacturing platform for embodied AI hardware[59] - Continuously expanding into the smart retail payment terminal market, strengthening diversified growth contributions[59] Other Important Information Material Investments and Material Acquisitions and Disposals of Subsidiaries, Associates, and Joint Ventures As of the date of this announcement, the company has no other material future plans for investments and capital assets beyond those disclosed in the prospectus and this announcement, nor were there any material acquisitions or disposals of subsidiaries, associates, and joint ventures during the reporting period - As of the date of this announcement, the company has no other material future plans regarding material investments and capital assets[60] - During the reporting period, the company had no material investments and/or material acquisitions or disposals of subsidiaries, associates, and joint ventures[61] Corporate Governance The company is committed to maintaining high standards of corporate governance, having adopted the Corporate Governance Code in Appendix C1 of the Hong Kong Listing Rules; while the H-shares were not listed during the reporting period and the code was not applicable, it has been complied with since the listing date, with two deviations: the roles of Chairman and Chief Executive Officer are not segregated, and management reports business progress quarterly - The company has adopted all applicable code provisions of the Corporate Governance Code as set out in Appendix C1 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[62] - Since the H-share listing date (July 9, 2025), the company has complied with all applicable code provisions in Part 2 of the Corporate Governance Code, with two deviations: the roles of Chairman and Chief Executive Officer are not segregated, and management reports business progress quarterly[63][64][65] Standard Code for Securities Transactions by Directors The company has adopted the Standard Code in Appendix C3 of the Listing Rules; while the H-shares were not listed during the reporting period and the code was not applicable, all Directors and Supervisors have confirmed compliance with the Standard Code's provisions since the listing date - The company has adopted the Standard Code as set out in Appendix C3 of the Listing Rules as the code of conduct for securities transactions by Directors and Supervisors[66] - Since the H-share listing date, each Director and Supervisor has confirmed compliance with the standards set out in the Standard Code[67] Significant Events After the Reporting Period Except for the H-share listing and share issuance disclosed in Note 17 to the condensed consolidated financial statements, there were no other significant events affecting the Group from the end of the reporting period to the date of this announcement - Save as disclosed in Note 17 to the condensed consolidated financial statements, there were no other significant events affecting the Group from the end of the reporting period to the date of this announcement[68] Use of Proceeds from Global Offering The company's H-share global offering has successfully listed, with net proceeds after expenses of approximately HKD 5,404.52 million (equivalent to approximately RMB 4,924.27 million), which will be used as stated in the prospectus, with no changes to the proposed use currently - Net proceeds from the company's H-share global offering amounted to approximately HKD 5,404.52 million (equivalent to approximately RMB 4,924.27 million)[69] - The net proceeds will be used as stated in the prospectus, with no changes to the proposed use currently[69][70] 2025 Interim Dividend The Board approved the 2025 interim profit distribution plan, proposing a cash dividend of RMB 1.00 per 10 shares (tax inclusive), totaling an estimated RMB 526,022,760.40, representing 46.03% of H1 net profit; H-share dividends will be paid in HKD at a specific exchange rate, with detailed tax relief and withholding arrangements for A-share and H-share shareholders - The Board approved the 2025 interim profit distribution plan: a cash dividend of RMB 1.00 per 10 shares (tax inclusive)[73] 2025 Interim Dividend Distribution Details | Indicator | Amount | | :--- | :--- | | H1 2025 Net Profit Attributable to Owners of the Parent | RMB 1,142,689,297.22 | | Actual Distributable Profits to Shareholders | RMB 14,464,160,992.29 | | Estimated Total Cash Dividend | RMB 526,022,760.40 | | Percentage of H1 2025 Unaudited Net Profit | 46.03% | - H-share dividends will be calculated based on the average benchmark exchange rate of RMB to HKD published by the People's Bank of China for the five working days preceding the Board meeting (RMB 0.91274 to HKD 1.00), resulting in an interim dividend of HKD 1.0956 per 10 H-shares (tax inclusive)[74] I. Distributable Profits The company achieved a net profit attributable to shareholders of RMB 1,142,689,297.22 in H1 2025, with actual distributable profits to shareholders totaling RMB 14,464,160,992.29 as of June 30, 2025 - The company achieved a net profit attributable to shareholders of RMB 1,142,689,297.22 in H1 2025[71] - As of June 30, 2025, the company's actual distributable profits to shareholders amounted to RMB 14,464,160,992.29[72] II. Distribution Plan The company's 2025 interim profit distribution plan proposes a cash dividend of RMB 1.00 per 10 shares (tax inclusive) to all shareholders, with an estimated total cash dividend of RMB 526,022,760.40, representing 46.03% of H1 net profit - The company's 2025 interim profit distribution plan proposes a cash dividend of RMB 1.00 per 10 shares (tax inclusive) to all shareholders[73] - The estimated total cash dividend is RMB 526,022,760.40, representing 46.03% of the company's unaudited net profit for H1 2025[73] - The H-share interim dividend is HKD 1.0956 per 10 shares (tax inclusive), calculated at an average benchmark exchange rate of RMB 0.91274 to HKD 1.00[74] III. Suspension of H-share Transfer Registration for 2025 Interim Dividend Distribution To determine eligibility for the 2025 interim dividend, H-share transfer registration will be suspended from September 18 to September 23, 2025, with the record date being September 23, 2025 - To determine eligibility for the 2025 interim dividend, H-share transfer registration will be suspended from September 18 to September 23, 2025[75] - The record date is September 23, 2025, and H-share shareholders must complete transfer registration by 4:30 p.m. on September 17, 2025[75] IV. Tax Relief This section details dividend tax relief and withholding arrangements for overseas non-resident enterprise and individual H-share shareholders, Shenzhen-Hong Kong Stock Connect investors, and Shanghai-Hong Kong Stock Connect H-share investors - For overseas non-resident enterprise H-share shareholders, the company is required to withhold and pay enterprise income tax at a 10% rate[76] - For overseas individual H-share shareholders, the company will withhold and pay individual income tax at a 10% rate, and provide assistance for tax refund applications based on tax treaties[77] - Dividends for Shenzhen-Hong Kong Stock Connect investors are subject to a 10% income tax withholding by the company, with eligible investors under tax treaties able to apply for tax refunds[79][80] - Dividends for Shanghai-Hong Kong Stock Connect H-share investors are distributed in RMB, with mainland individual investors and securities investment funds subject to a 20% individual income tax withholding, while mainland enterprise investors declare and pay taxes themselves[81] Purchases, Sales or Redemptions of the Company's Listed Securities During the reporting period, the company cumulatively repurchased 322,600 A-shares through centralized bidding, totaling RMB 7,267,695, for employee stock ownership or equity incentive plans, and concurrently repurchased and cancelled 107,100 restricted A-shares from 45 incentive recipients - The company cumulatively repurchased 322,600 A-shares through centralized bidding, representing 0.006474% of the total A-share capital, with a total payment of RMB 7,267,695, for employee stock ownership or equity incentive plans[83] - The company repurchased and cancelled a total of 107,100 restricted A-shares of the first category, which were granted but not yet vested, from 45 incentive recipients who no longer met the incentive qualifications[84] Publication of 2025 Interim Results and H-share Interim Report The 2025 interim results announcement has been published on the HKEXnews website and the company's website, and the H-share interim report will be displayed on these websites and dispatched to shareholders who have requested printed copies in due course - The 2025 interim results announcement has been published on the HKEXnews website (www.hkexnews.hk) and the **company's website (www.hnlens.com)**[85](index=85&type=chunk) - The H-share interim report will be displayed on the aforementioned websites in due course and dispatched to shareholders who have requested printed copies[85]