彩客新能源(01986) - 2025 - 中期业绩

Financial Highlights The company reported a 7.1% decrease in revenue and a 19.7% decrease in gross profit for H1 2025, while net profit increased by 27.7% Key Financial Data for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 933.5 | 1,005.0 | -7.1% | | Gross Profit | 116.8 | 145.4 | -19.7% | | Net Profit | 30.0 | 23.5 | +27.7% | | Basic and Diluted Earnings Per Share | 0.01 | 0.02 | -50.0% | - The Board resolved to declare an interim dividend of RMB0.015 per ordinary share (H1 2024: interim dividend of RMB0.005 and special dividend of RMB0.025 per ordinary share)[2] Unaudited Interim Condensed Consolidated Financial Statements This section presents the unaudited interim condensed consolidated financial statements, including statements of profit or loss, financial position, and cash flows Unaudited Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Revenue decreased by 7.1% and gross profit by 19.7%, but profit for the period increased by 27.7% due to significantly reduced income tax expense, despite a 40.4% drop in profit attributable to owners of the parent Overview of Profit or Loss and Other Comprehensive Income | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 933,518 | 1,005,013 | -7.1% | | Cost of Sales | (816,678) | (859,592) | -5.0% | | Gross Profit | 116,840 | 145,421 | -19.7% | | Profit Before Tax | 32,857 | 30,521 | +7.6% | | Income Tax Expense | (2,832) | (7,023) | -59.7% | | Profit for the Period | 30,025 | 23,498 | +27.8% | | Profit Attributable to Owners of the Parent | 9,315 | 15,634 | -40.4% | | Profit Attributable to Non-controlling Interests | 20,710 | 7,864 | +163.4% | | Basic and Diluted Earnings Per Share (RMB) | 0.01 | 0.02 | -50.0% | Unaudited Interim Condensed Consolidated Statement of Financial Position As of June 30, 2025, total assets and liabilities decreased, but net current assets increased, indicating improved liquidity primarily driven by a significant reduction in current liabilities Overview of Financial Position | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (RMB thousand) | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 1,912,241 | 1,945,108 | -32,867 | | Total Current Assets | 1,325,169 | 1,562,341 | -237,172 | | Total Current Liabilities | 907,805 | 1,200,012 | -292,207 | | Net Current Assets | 417,364 | 362,329 | +55,035 | | Total Equity | 1,962,227 | 1,953,055 | +9,172 | Unaudited Interim Condensed Consolidated Statement of Cash Flows Net cash flow from operating activities significantly increased due to higher cash payments from sales, while net cash outflow from investing activities rose and net cash outflow from financing activities substantially decreased, reflecting reduced loan repayments and dividend payments Overview of Cash Flows | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (RMB thousand) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 69,862 | 35,167 | +34,695 | | Net Cash Flow Used in Investing Activities | (18,818) | (10,758) | -8,060 | | Net Cash Flow Used in Financing Activities | (18,007) | (134,311) | +116,304 | | Net Increase/(Decrease) in Cash and Cash Equivalents | 33,037 | (109,902) | +142,939 | | Cash and Cash Equivalents at End of Period | 300,418 | 177,439 | +122,979 | Notes to the Unaudited Interim Condensed Consolidated Financial Information This section provides detailed notes explaining the basis of preparation, significant accounting policies, and specific financial statement line items 1. Company Information The company is an investment holding company incorporated in the Cayman Islands, primarily engaged in the production and sale of battery materials, dye and agrochemical intermediates, pigment intermediates, and new materials, with Mr. Ge Yi identified as the controlling party - The company is an investment holding company incorporated in the Cayman Islands, primarily engaged in the production and sale of battery materials, dye and agrochemical intermediates, pigment intermediates, and new materials[9][14] - Mr. Ge Yi has been identified by the Board as the company's controlling party[9] 2. Basis of Preparation and Changes in Accounting Policies The interim financial information is prepared in accordance with HKAS 34 and should be read with the annual financial statements; newly adopted HKFRS amendments, including HKAS 21 on lack of exchangeability, have no material impact on the Group's financial position or performance - The interim condensed consolidated financial information is prepared in accordance with Hong Kong Accounting Standard 34 “Interim Financial Reporting”[10] - Newly adopted amendments to Hong Kong Financial Reporting Standards, including HKAS 21 “Lack of Exchangeability”, have no impact on the Group's financial position or performance[11][12][13] 3. Operating Segment Information The Group operates in three reportable segments: battery materials, dye and agrochemical intermediates, and pigment intermediates and new materials; the latter showed significant revenue and profit growth, while the other two segments experienced declines - The Group has three reportable operating segments: battery materials, dye and agrochemical intermediates, and pigment intermediates and new materials[15][16] Operating Segment Revenue and Profit | Segment | H1 2025 Revenue (RMB thousand) | H1 2024 Revenue (RMB thousand) | Year-on-year Change (%) | H1 2025 Profit (RMB thousand) | H1 2024 Profit (RMB thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Battery Materials | 234,277 | 281,949 | -16.9% | (99,684) | (101,222) | +1.5% | | Dye and Agrochemical Intermediates | 416,520 | 502,506 | -17.1% | 44,493 | 98,928 | -55.0% | | Pigment Intermediates and New Materials | 282,721 | 220,558 | +28.2% | 95,400 | 63,331 | +50.6% | | Total Segment Revenue | 933,518 | 1,005,013 | -7.1% | 40,209 | 61,037 | -34.1% | - As of June 30, 2025, assets for the battery materials segment were RMB1,433,414 thousand, for dye and agrochemical intermediates RMB1,607,367 thousand, and for pigment intermediates and new materials RMB634,498 thousand[18] 4. Revenue Total revenue for the period was RMB933.5 million, entirely from goods sales, with mainland China remaining the primary market, though export sales to India and Indonesia increased - Total revenue was RMB933,518 thousand, entirely derived from the sale of goods[21] Revenue by Geographical Market | Geographical Market | H1 2025 Revenue (RMB thousand) | H1 2024 Revenue (RMB thousand) | | :--- | :--- | :--- | | Mainland China | 725,829 | 833,207 | | India | 103,157 | 80,139 | | Indonesia | 22,342 | 12,053 | | Japan | 16,849 | 13,598 | | Germany | 12,789 | 14,793 | | Brazil | 9,896 | 7,507 | | Taiwan, China | 9,010 | 7,599 | | Spain | 8,942 | 5,100 | | United States | 5,488 | 13,412 | | Other Countries/Regions | 9,288 | 5,978 | | Total | 933,518 | 1,005,013 | 5. Finance Costs Finance costs decreased year-on-year to RMB17.7 million, primarily due to lower interest on bank and other borrowings Composition of Finance Costs | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (RMB thousand) | | :--- | :--- | :--- | :--- | | Interest on bank and other borrowings and other non-current liabilities | 16,993 | 19,651 | -2,658 | | Interest on lease liabilities | 278 | 13 | +265 | | Other finance costs | 438 | 2,483 | -2,045 | | Total | 17,709 | 22,147 | -4,438 | - There were no capitalized interest expenses for the six months ended June 30, 2025 and 2024[23] 6. Profit Before Tax Profit before tax was RMB32.9 million, primarily influenced by cost of inventories sold, depreciation, research and development costs, staff salaries and benefits, and inventory write-downs Key Deductions/Additions to Profit Before Tax | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of inventories sold | 816,678 | 859,592 | | Depreciation of property, plant and equipment | 79,865 | 81,460 | | Research and development costs | 7,955 | 9,630 | | Wages, salaries and benefits | 104,808 | 89,896 | | Write-down of inventories to net realizable value | 18,314 | 8,596 | 7. Income Tax Expense Income tax expense significantly decreased by 59.7% year-on-year to RMB2.8 million, mainly due to a reduction in current taxable income; the company applies varying tax rates across regions, with Tsaker Chemical enjoying preferential high-tech enterprise rates Composition of Income Tax Expense | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Current income tax expense | 22,068 | 38,823 | -43.2% | | Deferred income tax credit | (19,236) | (31,800) | -39.5% | | Total Income Tax Expense for the Period | 2,832 | 7,023 | -59.7% | 8. Earnings Per Share Attributable to Owners of the Parent Basic and diluted earnings per share attributable to owners of the parent was RMB0.01, representing a 50% decrease compared to the same period last year Earnings Per Share Calculation | Indicator | H1 2025 | H1 2024 | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Profit for the period attributable to owners of the parent (RMB thousand) | 9,315 | 15,634 | -40.4% | | Weighted average number of ordinary shares for basic EPS (thousand shares) | 970,865 | 993,392 | -2.3% | | Basic and Diluted Earnings Per Share (RMB) | 0.01 | 0.02 | -50.0% | - The Group had no dilutive potential ordinary shares during the reporting period[27] 9. Property, Plant and Equipment During the period, the company incurred a total cost of RMB27.0 million for property, plant, and equipment purchases, and disposed of assets with a net book value of approximately RMB3.8 million, resulting in a net loss of approximately RMB3.3 million - Total cost of purchases of property, plant and equipment: approximately RMB27,002 thousand for H1 2025 (H1 2024: approximately RMB43,687 thousand)[28] - Net book value of assets disposed: approximately RMB3,806 thousand for H1 2025 (H1 2024: approximately RMB2,178 thousand), resulting in a net loss of approximately RMB3,312 thousand (H1 2024: approximately RMB1,484 thousand)[28] 10. Inventories During the period, the company's inventories were written down to net realizable value by approximately RMB18.3 million, a significant increase compared to the same period last year - Inventories written down to net realizable value: approximately RMB18,314 thousand for H1 2025 (H1 2024: approximately RMB8,596 thousand)[29] 11. Trade Receivables As of June 30, 2025, total trade receivables were RMB243.9 million, a decrease from December 31, 2024; the company maintains strict control over overdue balances and uses a simplified approach for expected credit loss provisions Trade Receivables and Impairment Provisions | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (RMB thousand) | | :--- | :--- | :--- | :--- | | Trade receivables | 251,359 | 293,699 | -42,340 | | Impairment provisions | (7,474) | (9,835) | +2,361 | | Total | 243,885 | 283,864 | -39,979 | - Credit terms generally range from one to three months, with regular review of overdue balances and no significant concentration of credit risk[30] - Changes in impairment provisions: a reversal of RMB2,361 thousand for H1 2025 (December 31, 2024: provision of RMB1,395 thousand)[31] 12. Financial Assets at Fair Value Through Profit or Loss As of June 30, 2025, total financial assets at fair value were RMB33.1 million, a significant increase from December 31, 2024, primarily driven by growth in listed equity investments and short-term debt investments Financial Assets at Fair Value Through Profit or Loss | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (RMB thousand) | | :--- | :--- | :--- | :--- | | Listed equity investments (current) | 14,003 | 906 | +13,097 | | Short-term debt investments (current) | 2,421 | – | +2,421 | | Unlisted investments (non-current) | 16,687 | 14,960 | +1,727 | | Total | 33,111 | 15,866 | +17,245 | - Listed equity investments and short-term debt investments are classified as held for trading purposes[33] - Unlisted investments represent an investment in the income rights of a private equity fund[33] 13. Interest-bearing Bank and Other Borrowings As of June 30, 2025, total interest-bearing bank and other borrowings increased to RMB251.8 million from December 31, 2024, all repayable within one year, with certain property, plant, and equipment pledged as collateral Interest-bearing Bank and Other Borrowings | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (RMB thousand) | | :--- | :--- | :--- | :--- | | Short-term bank loans (secured) | 211,719 | 165,172 | +46,547 | | Short-term bank loans (unsecured) | 30,029 | 25,249 | +4,780 | | Long-term other borrowings (secured) | 10,080 | 17,990 | -7,910 | | Total Bank and Other Borrowings | 251,828 | 208,411 | +43,417 | - All borrowings are denominated in RMB and bear fixed interest rates[34] - Property, plant and equipment and right-of-use assets of approximately RMB182.3 million have been pledged to secure bank borrowings and credit facilities[34] 14. Cash and Cash Equivalents As of June 30, 2025, cash and cash equivalents totaled RMB300.4 million, predominantly denominated in RMB, with restricted cash primarily comprising margin deposits for bills payable Composition of Cash and Cash Equivalents | Indicator | June 30, 2025 (RMB thousand) | June 30, 2024 (RMB thousand) | Change (RMB thousand) | | :--- | :--- | :--- | :--- | | Cash and bank balances | 303,593 | 210,832 | +92,761 | | Less: Restricted cash | (3,175) | (33,393) | +30,218 | | Cash and Cash Equivalents | 300,418 | 177,439 | +122,979 | - Restricted cash primarily consists of margin deposits held for bills payable[35] 15. Fair Value and Fair Value Hierarchy of Financial Instruments The Group's financial instruments are measured at fair value across three levels, including bills receivable, financial assets at fair value, and equity investments designated at fair value, with Level 3 valuation methods primarily used for non-current financial assets at fair value and unquoted equity investments - Fair value measurements are categorized into three levels: Level 1 (quoted prices in active markets), Level 2 (observable inputs), and Level 3 (significant unobservable inputs)[37] - As of June 30, 2025, the total fair value of financial assets was RMB116,487 thousand, comprising RMB16,424 thousand in Level 1, RMB54,156 thousand in Level 2, and RMB45,907 thousand in Level 3[41] - Non-current financial assets at fair value are valued using valuation multiples and a discount for lack of marketability[43][44] - The fair value of other non-current liabilities is classified under Level 2, amounting to RMB379,773 thousand as of June 30, 2025[46] 16. Contingent Liabilities As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities[49] 17. Commitments As of June 30, 2025, the Group had contracted but unprovided capital commitments of RMB5.4 million, primarily for plant and machinery - Contracted but unprovided capital commitments: RMB5,430 thousand as of June 30, 2025 (December 31, 2024: RMB7,720 thousand), primarily for plant and machinery[50] 18. Related Party Transactions During the period, the Group engaged in product sales and purchase transactions with related parties, primarily entities controlled by close family members of the company's controlling party, and key management personnel remuneration increased - Sales of products and services to Hebei Huage Graphene Materials Co., Ltd. amounted to RMB31 thousand in H1 2025[52] - Purchases of products and services from Cangzhou Aomu Agricultural Development Co., Ltd. amounted to RMB84 thousand and from Dezhou Wugu Shishang Food Technology Co., Ltd. to RMB77 thousand in H1 2025[52] - All related party transactions were conducted at published prices and terms, with related parties controlled by close family members of the Group's controlling party[53][54] - Remuneration paid to key management personnel: RMB5,550 thousand for H1 2025 (H1 2024: RMB3,461 thousand)[55] 19. Dividends The Board resolved to declare an interim dividend of RMB0.015 per ordinary share, an increase from the same period last year - Final dividend of RMB0.025 per ordinary share for 2024, totaling RMB24,267 thousand, was declared and paid in H1 2025[56] - The Board resolved to declare an interim dividend of RMB0.015 per ordinary share (H1 2024: interim dividend of RMB0.005 and special dividend of RMB0.025 per ordinary share)[56] 20. Events After the Reporting Period Subsequent to the reporting period, the Board declared an interim dividend on August 25, 2025 - On August 25, 2025, the Board declared an interim dividend for the six months ended June 30, 2025[57] 21. Approval of Interim Financial Information The Group's unaudited interim condensed consolidated financial information for the six months ended June 30, 2025, was authorized for issue by the Board on August 25, 2025 - The unaudited interim condensed consolidated financial information was authorized for issue by the Board on August 25, 2025, in accordance with a Board resolution[58] Management Discussion and Analysis This section provides an overview of the Group's financial performance, operational highlights, and future outlook for the reporting period Performance Review During the period, overall Group revenue and gross profit decreased year-on-year, but the pigment intermediates and new materials segment performed strongly with significant growth in both, while battery materials and dye and agrochemical intermediates faced market challenges with declining revenue and gross profit Operating Segment Performance This section details the revenue and profit performance of each operating segment, highlighting key drivers and challenges - Overall revenue decreased by 7.1% year-on-year to RMB933.5 million, and gross profit decreased by 19.7% to RMB116.8 million, with the overall gross profit margin falling to 12.5%[59][74] - Profit attributable to owners of the parent decreased by 40.4% year-on-year to RMB9.3 million, with the profit margin falling to 1.0%[60] - Battery materials segment revenue decreased by 16.9% year-on-year to RMB234.3 million, accounting for approximately 25.1% of total revenue; gross profit decreased by 76.1% to RMB-53.9 million, with a gross profit margin of -23.0%; sales volume decreased due to focus on high-performance products and intense competition, while average selling price increased, but production costs rose due to increased shutdown costs from Cangzhou factory's technical upgrade[61][62] - Dye and agrochemical intermediates segment revenue decreased by 17.1% year-on-year to RMB416.5 million, accounting for approximately 44.6% of total revenue; overall gross profit decreased by 52.2% to RMB44.9 million, with a gross profit margin of 10.8%; average selling price of DSD acid decreased due to market fluctuations, but sales volume of iron oxide red to battery material customers significantly increased; agrochemical intermediates experienced declines in both sales volume and average selling price due to supply-demand imbalance and intensified competition[64][65][66] - Pigment intermediates and new materials segment revenue increased by 28.2% year-on-year to RMB282.7 million, accounting for approximately 30.3% of total revenue; overall gross profit increased by 53.3% to RMB125.9 million, with a gross profit margin of 44.5%; growth was primarily driven by increased downstream demand and supply shortages from competitors, leading to a significant increase in product sales volume[67][68] Exports Export revenue increased by 20.9% year-on-year to RMB207.7 million, representing 22.2% of total revenue, primarily driven by increased sales to India and Indonesia - Export revenue was approximately RMB207.7 million, a year-on-year increase of 20.9%[69] - Export revenue accounted for approximately 22.2% of total revenue (H1 2024: 17.1%)[69] - Export growth was mainly due to increased export sales to India and Indonesia[69] Business Outlook Facing complex domestic and international economic environments, the company will continue to optimize sales strategies, upgrade product technology, focus on high-performance battery materials, see a market recovery in dye and agrochemical intermediates, maintain strong performance in pigment intermediates and new materials, and actively advance Tsaker Chemical's listing on the Beijing Stock Exchange - China's economy is experiencing a moderate recovery but faces internal and external pressures, alongside global geopolitical tensions and trade uncertainties[70] - Battery materials: optimizing sales strategies, divesting from low-end market competition, focusing on high-performance lithium iron phosphate products, with a new generation of products already in small-batch commercial application, and comprehensive technical upgrades at the Cangzhou factory to enhance performance and reduce costs[71] - Dye and agrochemical intermediates: market performance is recovering, iron oxide red products successfully expanded into battery material applications, and agrochemical intermediates effectively suppressed competitors through stable customer relationships and flexible strategies, leading to increased sales volume[72] - Pigment intermediates and new materials: strong market performance with significant increases in sales volume and revenue, and new material BPDA products achieved mass production and positive gross profit[73] - The proposed transfer of indirect non-wholly owned subsidiary Tsaker Chemical to the Beijing Stock Exchange has made phased progress, with the listing application submitted and accepted[73] - The company will adhere to a proactive and stable strategy, driven by continuous R&D, deepening technological innovation and process iteration, and coordinating the development of all business segments[73] Revenue and Gross Profit During the period, Group revenue decreased by 7.1% year-on-year to RMB933.5 million, and gross profit decreased by 19.7% to RMB116.8 million, resulting in a gross profit margin of 12.5% - Revenue was approximately RMB933.5 million, a year-on-year decrease of 7.1%[74] - Gross profit was approximately RMB116.8 million, a year-on-year decrease of 19.7%[74] - Gross profit margin was approximately 12.5% (H1 2024: 14.5%)[74] Net Profit and Net Profit Margin During the period, Group net profit increased by 27.7% year-on-year to RMB30.0 million, with the net profit margin rising to 3.2% - Net profit was approximately RMB30.0 million, a year-on-year increase of 27.7%[75] - Net profit margin was approximately 3.2% (H1 2024: 2.3%)[75] Selling and Distribution Expenses Selling and distribution expenses decreased by 52.4% year-on-year to RMB9.0 million, primarily due to strict cost control measures - Selling and distribution expenses were approximately RMB9.0 million, a year-on-year decrease of RMB9.9 million[76] - Representing 1.0% of revenue (H1 2024: 1.9%)[76] - The decrease was mainly due to the implementation of strict cost control measures[76] Administrative Expenses Administrative expenses decreased by 5.9% year-on-year to RMB70.3 million, primarily due to reductions in technical research and development fees and intermediary service fees - Administrative expenses were approximately RMB70.3 million, a year-on-year decrease of RMB4.4 million[77] - Representing 7.5% of revenue (H1 2024: 7.4%)[77] - The decrease was mainly due to reductions in technical research and development fees, intermediary service fees, and other expenses[77] Finance Costs Finance costs decreased by 19.9% year-on-year to RMB17.7 million, primarily due to lower interest rates on interest-bearing bank and other borrowings, with an increase in net exchange gains - Finance costs were approximately RMB17.7 million, a year-on-year decrease of RMB4.4 million[78] - The decrease was mainly due to lower interest rates on interest-bearing bank and other borrowings[78] - Net exchange gains were approximately RMB0.7 million (H1 2024: approximately RMB0.2 million), primarily affected by fluctuations in the RMB exchange rate against the US dollar[79] Income Tax Expense Income tax expense decreased by 59.7% year-on-year to RMB2.8 million, primarily due to a reduction in current taxable income; the company applies varying tax rates across regions, with Tsaker Chemical enjoying preferential high-tech enterprise rates - Income tax expense was approximately RMB2.8 million, a year-on-year decrease of RMB4.2 million[80] - The decrease was mainly due to a reduction in current taxable income[80] - Chinese subsidiaries generally apply a 25% tax rate, Tsaker Chemical enjoys a 15% preferential tax rate, Hong Kong subsidiaries apply a two-tiered tax system of 8.25%/16.5%, and Singapore subsidiaries apply a 17% tax rate[80] Cash Flows Net cash inflow from operating activities significantly increased, net cash outflow from investing activities rose, and net cash outflow from financing activities substantially decreased, reflecting higher cash payments from sales, increased property, plant, and equipment maintenance expenses, and reduced loan repayments and dividend distributions - Net cash inflow from operating activities was approximately RMB69.9 million, a year-on-year increase of RMB34.7 million, primarily due to a higher proportion of cash payments from sales receipts[81] - Net cash outflow from investing activities was approximately RMB18.8 million, a year-on-year increase of RMB8 million, mainly due to increased property, plant, and equipment maintenance expenses[81] - Net cash outflow from financing activities was approximately RMB18.0 million, a year-on-year decrease of RMB116.3 million, primarily due to reduced loan repayments and dividend distributions[81] Financial Policy The Group adopts a prudent financial management approach, maintaining a robust liquidity position, primarily meeting working capital needs through internal operating cash flows and bank borrowings - The Group adopts a prudent financial management approach and closely monitors its liquidity position[82] - Daily working capital is primarily sourced from cash flows generated from internal operations and bank borrowings[83] Gearing Ratio As of June 30, 2025, the gearing ratio increased to 12.8% - The gearing ratio (interest-bearing bank and other borrowings divided by total equity) was approximately 12.8% (December 31, 2024: approximately 10.7%)[86] Current Assets As of June 30, 2025, total current assets were RMB1,325.2 million, primarily comprising inventories, trade and bills receivables, and cash and cash equivalents; inventory turnover days increased, while trade and bills receivables turnover days remained stable - Total current assets were approximately RMB1,325.2 million (December 31, 2024: approximately RMB1,562.3 million)[87] - Key components: inventories approximately RMB332.6 million, trade and bills receivables approximately RMB625.7 million, and cash and cash equivalents approximately RMB300.4 million[87] - Inventory turnover days: 67 days (year ended December 31, 2024: 52 days), an increase mainly due to higher ending inventory quantities to address market uncertainties[88] - Trade and bills receivables turnover days: 154 days (year ended December 31, 2024: 143 days), remaining stable[89] Current Liabilities As of June 30, 2025, total current liabilities significantly decreased to RMB907.8 million from December 31, 2024, primarily due to reductions in other payables and accrued expenses, and contract liabilities - Total current liabilities were approximately RMB907.8 million (December 31, 2024: approximately RMB1,200.0 million)[91] - Key components: trade and bills payables approximately RMB384.3 million, other payables and accrued expenses and contract liabilities approximately RMB260.8 million, and interest-bearing bank and other borrowings approximately RMB251.8 million[91] - Trade and bills payables turnover days: 85 days (year ended December 31, 2024: 80 days), remaining relatively stable[92] - Other payables and accrued expenses and contract liabilities decreased by approximately RMB334 million in total, mainly due to a reduction in unrecognised endorsed bills receivable[93] Pledged Assets As of June 30, 2025, approximately RMB182.3 million of property, plant, and equipment and right-of-use assets were pledged to secure bank borrowings and credit facilities - Approximately RMB182.3 million of property, plant and equipment and right-of-use assets have been pledged to secure bank borrowings and credit facilities[94] Material Acquisitions, Disposals and Major Investments During the reporting period, the Group did not undertake any material acquisitions, disposals, or major investments - For the six months ended June 30, 2025, the Group had no material acquisitions, disposals, or major investments[95] Capital Commitments Details regarding the Group's capital commitments are provided in Note 17 to the financial statements - Details of capital commitments are provided in Note 17 to the financial statements[96] Future Plans for Material Investments or Capital Assets As of the date of this announcement, the Group has no other plans for material investments or acquisitions of capital assets - As of the date of this announcement, the Group has no other plans for material investments or acquisitions of capital assets[97] Contingent Liabilities As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities[98] Foreign Exchange Risk The Group is exposed to foreign exchange risk primarily related to operating activities, currently without foreign currency hedging, but the Board closely monitors and considers hedging options - The Group is exposed to foreign exchange risk primarily related to its operating activities and currently has no foreign currency hedging policy[99] - The Board closely monitors exchange rate fluctuations and will consider hedging if necessary[99] Employees and Remuneration Policies As of June 30, 2025, the Group had 2,098 employees, with total staff costs increasing year-on-year primarily due to salary growth; the company is committed to building an HR policy system, offering incentive rewards and training programs - As of June 30, 2025, the Group had 2,098 employees (June 30, 2024: 2,117 employees)[100] - Total staff costs were approximately RMB129.0 million (H1 2024: approximately RMB111.6 million), with the increase mainly due to higher employee salaries and wages[100] - The company provides benefits such as bonuses, training programs, pension schemes, medical coverage, and housing provident funds[100] Events After Review Period Other than the interim dividend declaration disclosed in Note 20 to the financial statements, the Group had no other material events after the reporting period - Other than what is disclosed in Note 20 to the financial statements, the Group had no other material events after the reporting period[101] Interim Dividend The Board resolved to declare an interim dividend of RMB0.015 per ordinary share, totaling approximately RMB14.5 million, payable on November 28, 2025 - The Board resolved to declare an interim dividend of RMB0.015 per ordinary share (H1 2024: interim dividend of RMB0.005 and special dividend of RMB0.025 per ordinary share)[102] - The total interim dividend is approximately RMB14,531 thousand, payable on November 28, 2025[102] - The dividend will be declared in RMB and paid in HKD, at an exchange rate of HKD1 to RMB0.913[102] Corporate Governance and Other Information This section covers the company's corporate governance practices, compliance with relevant codes, and other pertinent information Purchase, Sale or Redemption of the Company's Listed Securities During the period, the company repurchased a total of 1,706,500 shares on the Stock Exchange for a total consideration of HKD1,365,560, with some repurchased shares cancelled, as the Board believed the share value did not reflect its intrinsic value - The company repurchased a total of 1,706,500 shares on the Stock Exchange for a total consideration of HKD1,365,560[105][107] - Of the repurchased shares, 1,082,500 shares and 624,000 shares were cancelled on February 19, 2025, and August 6, 2025, respectively[105] - The share repurchases were made as the Board believed the company's share value did not reflect its intrinsic value[105] Corporate Governance Code The company adopted the Corporate Governance Code in Appendix C1 Part 2 of the Listing Rules and complied with all provisions during the period, except for the chairman and chief executive officer being the same person, though the Board believes sufficient safeguards ensure power balance - The company has adopted the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules[109] - Except for the roles of Chairman and Chief Executive Officer being held by Mr. Ge Yi, the company has complied with all code provisions during the reporting period[109] - The Board believes that Mr. Ge Yi holding both roles ensures strong and consistent leadership, with sufficient safeguards in place to ensure a balance of power[109][110] Compliance with the Model Code for Securities Transactions by Directors The company adopted the Model Code in Appendix C3 of the Listing Rules, and all directors confirmed compliance during the reporting period, with no instances of employee breaches found - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules[111] - All directors confirmed compliance with the Model Code throughout the reporting period, and no instances of employee breaches were identified[111] Audit Committee and Review of Financial Statements The Board established an audit committee comprising three independent non-executive directors, which reviewed the Group's unaudited interim financial statements, and an independent auditor performed a review of the interim financial information - The Board has established an audit committee comprising three independent non-executive directors, which has reviewed the Group's unaudited interim financial statements[112] - Tianjian International Certified Public Accountants Limited, the independent auditor, has performed an independent review of the interim financial information[112] Publication of Interim Results Announcement and Interim Report This interim results announcement has been published on the Stock Exchange and the company's website, with the interim report to be posted in due course - The interim results announcement has been published on the Stock Exchange website www.hkexnews.hk and the company's website www.tsaker.com[113](index=113&type=chunk) - The interim report will be posted in due course[113]