YUSEI(00096) - 2025 - 中期业绩

Condensed Consolidated Financial Statements This section presents the Group's financial performance, position, and cash flows for the six months ended June 30, 2025, highlighting growth in revenue and profit Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, Youcheng Holdings Limited reported 6.0% revenue growth to RMB 1,008,873 thousand and 10.7% gross profit increase Condensed Consolidated Statement of Profit or Loss Key Data (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,008,873 | 951,936 | 6.0% | | Cost of Sales | (868,323) | (825,012) | 5.2% | | Gross Profit | 140,550 | 126,924 | 10.7% | | Other Income | 26,923 | 20,683 | 30.2% | | Selling Expenses | (65,045) | (55,389) | 17.4% | | Administrative Expenses | (50,103) | (41,216) | 21.6% | | Finance Costs | (17,560) | (17,896) | -1.9% | | Profit Before Tax | 34,974 | 33,364 | 4.8% | | Profit for the Period | 28,852 | 28,255 | 2.1% | | Basic and Diluted Earnings Per Share | RMB 0.0446 | RMB 0.0435 | 2.5% | Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the Group's total comprehensive income was RMB 28,382 thousand, a slight decrease primarily due to negative exchange differences from overseas operations Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit for the Period | 28,852 | 28,255 | | Exchange differences arising from translation of financial statements of overseas operations | (470) | 158 | | Total Comprehensive Income for the Period | 28,382 | 28,413 | | Total comprehensive income attributable to owners of the Company | 27,905 | 27,889 | | Total comprehensive income attributable to non-controlling interests | 477 | 524 | Condensed Consolidated Statement of Financial Position As of June 30, 2025, total assets less current liabilities increased to RMB 1,255,761 thousand, with net current liabilities improving from RMB (143,114) thousand to RMB (91,440) thousand Condensed Consolidated Statement of Financial Position Key Data | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Non-current Assets | 1,347,201 | 1,333,953 | | Current Assets | 1,580,792 | 1,670,900 | | Current Liabilities | 1,672,232 | 1,814,014 | | Net Current Assets | (91,440) | (143,114) | | Total Assets Less Current Liabilities | 1,255,761 | 1,190,839 | | Non-current Liabilities | 259,300 | 222,760 | | Share Capital and Reserves | 981,722 | 953,817 | | Non-controlling Interests | 14,739 | 14,262 | Consolidated Statement of Changes in Equity As of June 30, 2025, total equity attributable to owners of the Company increased to RMB 981,722 thousand, driven by profit for the period despite reduced exchange reserves Consolidated Statement of Changes in Equity Key Data | Indicator | January 1, 2025 (RMB thousands) | June 30, 2025 (RMB thousands) | | :--- | :--- | :--- | | Share Capital | 5,801 | 5,801 | | Reserves | 948,016 | 975,921 | | Total equity attributable to owners of the Company | 953,817 | 981,722 | | Non-controlling Interests | 14,262 | 14,739 | | Total | 968,079 | 996,461 | Changes during the period (January 1, 2025 to June 30, 2025): * Profit for the period: RMB 28,375 thousand (attributable to owners of the Company) * Other comprehensive income for the period: RMB (470) thousand (mainly reduction in exchange reserve) Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2025, net cash outflow from operating activities improved to RMB (68,310) thousand, but a significant drop in financing cash inflow led to a net decrease in cash and cash equivalents of RMB (79,546) thousand Condensed Consolidated Statement of Cash Flows Key Data (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net cash flows from/(used in) operating activities | (68,310) | (122,998) | | Net cash flows from/(used in) investing activities | (99,107) | (149,333) | | Net cash flows from/(used in) financing activities | 87,871 | 272,972 | | Net increase/(decrease) in cash and cash equivalents | (79,546) | 641 | | Cash and cash equivalents at end of period | 109,346 | 58,879 | Notes to the Financial Statements This section details the accounting policies, revenue recognition, profit before tax components, earnings per share calculation, and trade receivables and payables Basis of Presentation and Accounting Policies This interim financial report is prepared under HKAS 34 and Listing Rules, with consistent accounting policies and no significant impact from new HKFRS amendments - The Company's shares were listed on the Main Board of the Stock Exchange on December 15, 2010[8] - This interim financial report is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[8] - Amendments to Hong Kong Financial Reporting Standards adopted on January 1, 2025, did not have a significant impact on the financial statements[8][9] Revenue and Other Income Revenue is defined as amounts received and receivable from goods sold, net of discounts and VAT, while other income includes gains from raw material sales and government subsidies - Revenue is defined as amounts received and receivable from the sale of goods during the period, net of discounts and value-added tax[10] - Other income includes gains from the sale of raw materials and scrap, and government subsidies[11] Profit Before Tax and Taxation Profit before tax is derived after deducting various expenses, with several Chinese subsidiaries enjoying a preferential 15% corporate income tax rate due to high-tech enterprise status Profit Before Tax Deductions (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Cost of inventories charged to expenses | 823,540 | 786,591 | | Depreciation of right-of-use assets | 1,995 | 1,760 | | Amortisation of intangible assets | 2,338 | 1,975 | | Depreciation of property, plant and equipment | 81,735 | 71,785 | - The Group's Chinese subsidiaries are subject to a corporate income tax rate of 25%[13] - Several subsidiaries, including Guangzhou Youcheng, Hangzhou Youcheng, Hubei Youcheng, Youcheng China, Youcheng Technology Research, Suzhou Youcheng, Jilin Youcheng, Youcheng Technology, and Tianjin Youcheng, enjoy a preferential tax rate of 15% due to their high-tech enterprise qualifications, with most renewed until 2027[13][14][15][16] Earnings Per Share For the six months ended June 30, 2025, basic and diluted earnings per share attributable to ordinary shareholders increased to RMB 0.0446, with diluted EPS equaling basic EPS Earnings Per Share Calculation Data (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit for the purpose of calculating basic and diluted earnings per share | 28,375 | 27,731 | | Weighted average number of ordinary shares ('000) | 636,550 | 636,550 | | Basic and Diluted Earnings Per Share | RMB 0.0446 | RMB 0.0435 | - Diluted earnings per share is equal to basic earnings per share as there are no outstanding potential ordinary shares[17] Trade and Other Receivables and Payables As of June 30, 2025, net trade receivables decreased to RMB 624,140 thousand, and total payables and accrued expenses also decreased, indicating improved current liability management Trade Receivables, Deposits and Prepayments (As of June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade receivables (net) | 624,140 | 730,935 | | Bills receivable | 179,443 | 75,262 | | Prepayments to suppliers | 45,983 | 47,822 | | Total | 901,704 | 940,731 | - The Group typically grants credit periods of 30 to 90 days to customers, which can be extended to 90 to 270 days for mold customers with good relationships[19] Trade and Other Payables and Accrued Expenses (As of June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade and bills payables | 840,991 | 932,135 | | Contract liabilities | 70,614 | 76,296 | | Accrued staff costs | 52,448 | 56,626 | | Accrued expenses | 37,094 | 41,143 | | Total | 1,081,200 | 1,280,644 | - The average payment period for purchases is 30 to 120 days, and the Group has financial risk management policies to ensure timely payment of payables[20] Management Discussion and Analysis This section provides an overview of the Group's business operations, financial performance, liquidity, and future strategies, emphasizing growth and global expansion Business Review The Group specializes in precision injection mold design and plastic parts production in China, serving major automotive clients, with stable sales growth and global expansion into Mexico and Serbia - The Group primarily engages in the design, development, and manufacturing of precision injection molds and the production of plastic parts in China, serving well-known domestic automotive and auto parts manufacturers[21] - For the six months ended June 30, 2025, sales revenue was approximately RMB 1,008,873,000, and profit attributable to owners of the Company was approximately RMB 28,375,000[21] - The Group invested approximately RMB 44,783,000 in research and development and established two overseas subsidiaries in Mexico and Serbia to become a global automotive parts supplier[21] Financial Review For the six months ended June 30, 2025, the Group achieved 6.0% sales revenue growth, 10.7% gross profit increase, and a 13.9% gross margin, despite increased operating expenses Financial Review Key Data (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Sales Revenue | 1,008,873 | 951,936 | 6.0% | | Gross Profit | 140,550 | 126,924 | 10.7% | | Gross Profit Margin | 13.9% | 13.3% | +0.6pp | | Selling Expenses | 65,045 | 55,389 | 17.4% | | Administrative Expenses | 50,103 | 41,216 | 21.6% | | Finance Costs | 17,560 | 17,896 | -1.9% | | Profit attributable to owners of the Company | 28,375 | 27,731 | 2.3% | - The increase in gross profit was primarily due to increased revenue and an improved gross profit margin resulting from changes in the product sales mix[24] - The decrease in finance costs was mainly due to the net effect of an increase in the average balance of bank and other borrowings (to meet business development needs) and a decrease in the average borrowing interest rate[27] Financial Resources and Liquidity As of June 30, 2025, the Group's equity increased to RMB 996,461 thousand, with net asset value per share at RMB 1.57, and an improved net current asset position despite a higher gearing ratio of 28.6% Financial Resources and Liquidity Key Data | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Equity | 996,461 | 968,079 | | Current Assets | 1,580,792 | 1,670,900 | | Bank balances and cash | 109,346 | 188,892 | | Pledged bank balances | 82,122 | 55,108 | | Inventories | 486,846 | 480,840 | | Trade receivables, bills receivable, deposits and prepayments | 901,704 | 940,731 | | Net non-current assets | 1,347,201 | 1,333,953 | | Current Liabilities | 1,672,232 | 1,814,014 | | Non-current Liabilities | 259,300 | 222,760 | | Net Asset Value Per Share | RMB 1.57 | RMB 1.52 | | Gearing Ratio | 28.6% | 24.9% | Segment Information and Staff Remuneration The Group operates as a single segment in China, manufacturing and trading molds and plastic parts, employing 3,200 staff with total remuneration costs of approximately RMB 150 million - The Group's sole principal business is the manufacturing and trading of molds and plastic mold parts, with all operations located and conducted in China, operating as a single operating segment[30] - As of June 30, 2025, the Group employed approximately 3,200 staff, with total staff remuneration costs of approximately RMB 150,000,000[31] - Remuneration is determined by market rates and individual employee performance, qualifications, and experience, with provident funds and similar retirement benefit schemes provided[31] Pledge of Assets and Risk Management The Group's assets, including right-of-use assets and property, plant and equipment, are pledged for borrowings, and it faces unhedged foreign exchange risks in RMB, USD, and JPY - As of June 30, 2025, the Group's right-of-use assets (approximately RMB 69,000,000) and property, plant and equipment (approximately RMB 150,000,000) were pledged as collateral for bank borrowings[32] - Some property, plant and equipment (approximately RMB 7,000,000) were pledged as collateral for other borrowings under sale and leaseback arrangements, with the remaining other borrowings (approximately RMB 50,000,000) secured by interests in an associate[32] - The Group is exposed to foreign exchange risks in RMB, USD, and JPY but currently has no foreign currency hedging policy, with the Board considering hedging significant exchange rate risks when necessary[33] Material Events and Outlook The Group reported no material acquisitions or contingent liabilities, and plans to enhance product quality, expand globally, and invest in intelligent manufacturing for future growth - The Group had no material investments, acquisitions, or disposals of subsidiaries, nor any material contingent liabilities or capital commitments for the six months ended June 30, 2025[34][35] - Management will continue to enhance product quality, expand the customer base, strengthen its leading position in the high-end mold market, and provide one-stop services from mold development to injection molding, aluminum plating, and assembly[36] - The Group will strengthen communication with European, American, and Japanese customers, send technical personnel for training, and recruit senior sales and technical staff, while investing in intelligent construction and independently developing information systems like ERP and MES for digital and visual management[37][38] - To keep pace with the automotive industry's development, the Group will focus on the three major automotive manufacturing markets of Europe, Asia, and America, continuing to invest in the second phase of its Mexico Youcheng factory and expanding production capacity in Serbia to meet US and European market demand[39] Proposed Dividend The Board of Directors recommends not paying an interim dividend for the six months ended June 30, 2025 - The Board of Directors recommends not paying an interim dividend for the six months ended June 30, 2025 (2024: nil)[40] Other Information This section covers directors' and major shareholders' interests, share acquisition rights, code of conduct, audit committee functions, securities transactions, competing business interests, and corporate governance practices Directors' and Major Shareholders' Interests Several directors and major shareholders hold interests in the Company, with Mr. Masuda Katsutoshi and Mr. Masuda Toshimitsu indirectly holding 36.65% through Conpri Limited Directors' Interests in Shares of the Company (As of June 30, 2025) | Director's Name | Capacity | Number of Shares Held (Long Position) | Approximate Percentage of Interest | | :--- | :--- | :--- | :--- | | Mr. Masuda Katsutoshi | Corporate interest | 233,316,864 shares | 36.65% | | Mr. Masuda Toshimitsu | Corporate interest | 233,316,864 shares | 36.65% | | Mr. Xu Yong | Personal interest | 102,086,400 shares | 16.04% | | Mr. Shimabayashi Manabu | Personal interest | 7,900,800 shares | 1.24% | | Mr. Fan Xiaoping | Personal interest | 57,024 shares | 0.01% | Major Shareholders' Interests in Shares of the Company (As of June 30, 2025) | Shareholder Name | Capacity | Number of Shares Held (Long Position) | Approximate Percentage of Interest | | :--- | :--- | :--- | :--- | | Conpri | Beneficial owner | 233,316,864 shares | 36.65% | | Superview International Investment Limited | Beneficial owner | 110,880,000 shares | 17.42% | | Ding Hongguang | Beneficial owner | 60,104,640 shares | 9.44% | - Superview International Investment Limited is wholly owned by Mr. Xu Yue, the elder brother of Mr. Xu Yong, an executive director of the Company[44] Directors' Rights to Acquire Shares and Code of Conduct As of June 30, 2025, no rights to acquire shares or debentures were granted or exercised by directors, and the Company's code of conduct for securities dealings was complied with - As of June 30, 2025, neither the Company nor its subsidiaries granted any rights to, nor did any directors or their associates exercise any rights to acquire shares or debentures of the Company or any other body corporate[45] - The Company has adopted a code of conduct for directors' dealings in securities, with terms no less exacting than those set out in Appendix 10 of the Listing Rules, and no directors have breached this code in their securities dealings[46] Audit Committee The Audit Committee, comprising three independent non-executive directors, reviews financial reports, monitors internal controls, and has approved the interim financial statements - The Audit Committee consists of three independent non-executive directors (Mr. Koki Takabayashi, Mr. Fan Xiaoping, and Mr. Lo Ka Wai), with Mr. Lo Ka Wai appointed as Chairman[47] - Key responsibilities include reviewing draft annual, interim, and quarterly reports and advising the Board, as well as reviewing and monitoring the Group's financial reporting and internal control procedures[47] - The Audit Committee has reviewed and approved the condensed consolidated financial statements for the six months ended June 30, 2025[47] Purchase, Sale or Redemption of Listed Securities For the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any listed shares - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed shares[48] Directors' Interests in Competing Business and Non-Competition Undertaking Despite business similarities, Japan Youcheng's market differs from the Group's, and a non-competition undertaking ensures no competing activities and referral of business opportunities - Japan Youcheng primarily engages in the design, manufacturing, and sale of injection molds and plastic parts, with its target market in Japan, differing from the Group's markets in Mainland China, Taiwan, Hong Kong, and Macau SAR[49] - The Directors believe that Youcheng Kiko Co., Ltd. does not compete with the Group, and both management teams operate independently[49] - The covenantors (Youcheng Kiko Co., Ltd. and its subsidiaries) have entered into a non-competition undertaking, agreeing not to engage in activities similar to or competing with the Group's business, and to refer business opportunities within the Group's exclusive market to the Company or any member of the Group[50][51] Corporate Governance The Group complies with the Corporate Governance Code, with a deviation from provision A.1.8 regarding directors' legal liability insurance, deemed unnecessary by the Board - The Group has adopted and complied with the relevant provisions of the Corporate Governance Code set out in Appendix 14 of the Listing Rules, except for a deviation from Code Provision A.1.8[53] - Code Provision A.1.8 requires appropriate insurance arrangements for potential legal actions against directors, but the Board believes such insurance is unnecessary due to the Group's single business, strict risk control, and sufficient director capabilities[53]