英恒科技(01760) - 2025 - 中期业绩

Financial Summary The Group's H1 2025 financial performance shows a 5% revenue increase, but a significant 50% drop in net profit and earnings per share, primarily due to reduced gross profit margins H1 2025 Financial Summary (RMB thousand) | Financial Data | June 30, 2025 (Unaudited) | June 30, 2024 (Unaudited) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 2,966,322 | 2,835,031 | 5% | | Gross Profit | 401,046 | 451,966 | -11% | | Net Profit | 47,975 | 95,093 | -50% | | Profit Attributable to Owners of the Parent | 49,740 | 97,678 | -49% | | Basic Earnings Per Share (RMB cents) | 4.57 | 8.98 | -49% | | Diluted Earnings Per Share (RMB cents) | 4.57 | 8.98 | -49% | | Financial Ratios (as % of Total Revenue) | | | Percentage Point Change | | Gross Profit | 13.5% | 15.9% | -2.4 | | R&D Costs | 7.4% | 7.6% | -0.2 | | Net Profit | 1.6% | 3.4% | -1.8 | H1 2025 Revenue Breakdown (RMB thousand) | Revenue Details | June 30, 2025 (Unaudited) | June 30, 2024 (Unaudited) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | New Energy | 1,437,848 | 1,452,608 | -1% | | Body Systems | 314,404 | 422,691 | -26% | | Safety Systems | 451,568 | 355,382 | 27% | | Powertrain Systems | 185,189 | 161,112 | 15% | | Intelligent Driving & Connectivity | 230,548 | 229,860 | 0% | | Cloud Servers | 255,444 | 108,783 | 135% | | Services & Others | 91,321 | 104,595 | -13% | Management Discussion & Analysis Overview In H1 2025, China's auto market saw 11.4% sales growth, driven by 'trade-in' policies and NEV demand, with NEV sales up 40.3%, while the Group achieved 5% revenue growth despite industry price competition - H1 2025 China's auto sales reached 15.653 million units, a 11.4% year-on-year increase, with new energy vehicle sales growing 40.3% to 6.937 million units, accounting for 44.3% of total sales[6] - China's automotive industry profitability continued to decline, reaching 4.3% in 2024 and further dropping to 3.9% in Q1 2025[6] - The Group's revenue increased 5% year-on-year, and it launched the GRC1.0 high-performance controller solution based on the Digua Robot RDK S100 series intelligent computing platform, entering the embodied intelligent robotics field[6][7] Business Overview & Strategy As a leading automotive electronics and robotics solution provider, the Group leverages strong R&D, semiconductor application technology, and industrialization capabilities to achieve continuous growth in NEVs and intelligent driving, while applying its mature automotive electronics experience to robotics Automotive Electronics & Semiconductors The Group excels in NEV R&D and automotive semiconductor application technology, enabling cost-effective mass production solutions for OEMs, with NEV and intelligent driving as key growth drivers - The Group leverages its NEV R&D capabilities and automotive semiconductor application technology to help OEMs achieve cost-effective mass production solutions, enhancing business penetration[8] - The new energy sector and intelligent driving business are the primary drivers for the Group's long-term revenue and profit growth[8] - The Group maintains solid cooperation with global chip leaders and empowers the application and development of domestic chips in the Chinese automotive market[8] Robotics Business Layout Addressing standardization, high customization costs, and yield challenges in intelligent robot core controllers, the Group applies its high reliability, safety, and mass production experience from automotive electronics to robotics, offering industrial-grade controller products - The intelligent robotics industry faces challenges in core controller standardization, high customization costs, and product consistency and yield[9] - The Group injects its technological accumulation and mass production experience from automotive electronics (new energy, autonomous driving) into the robotics sector, providing standardized robot controller products[9] R&D & Operating Model R&D is the cornerstone of the Group's long-term development, providing optimized solutions through deep client collaboration, while adhering to a 'light-asset, heavy-R&D' model with continuous investment and a high-caliber talent team - R&D is the cornerstone of the Group's long-term business development, providing optimized solutions through deep collaboration with clients[10] - The Group adheres to a "light-asset, heavy-R&D" operating model, continuously investing in R&D and maintaining a high-caliber team of scientific and technological talents[10] H1 2025 Business Performance Despite a weak automotive electronics market and intensified competition, the Group's H1 2025 total revenue grew 5% to RMB 2.97 billion, driven by safety systems, powertrain systems, and cloud servers, though gross margin declined to 13.5% due to price competition Total Revenue & Gross Profit The Group's H1 2025 total revenue increased 5% to RMB 2.97 billion, driven by safety systems, powertrain systems, and cloud servers, but gross profit decreased to RMB 401.0 million, with gross margin falling 2.4 percentage points to 13.5% due to intensified price competition - H1 2025 total revenue increased 5% year-on-year to RMB 2.97 billion[11] - Gross profit was RMB 401.0 million, with a gross margin of 13.5%, a 2.4 percentage point decrease from the prior year, primarily due to intensified price competition among automotive OEMs[13] - The Group maintained total R&D expenses at 7.4% of total revenue, amounting to RMB 219.9 million[13] Segment Revenue Analysis The New Energy segment remains the largest contributor (48.5%) with stable revenue, while Safety Systems and Powertrain Systems saw 27% and 15% growth respectively, and Cloud Servers surged 135% due to AI demand New Energy The New Energy segment's revenue remained stable at RMB 1,437.8 million, accounting for 48.5% of total revenue, with growth in MCU, BMS, in-vehicle charging, and PTC, and strong new project acquisition - New Energy segment revenue was RMB 1,437.8 million, stable year-on-year, accounting for 48.5% of total revenue[11][15] - This business saw growth in Motor Control Units (MCU), Battery Management Systems (BMS), in-vehicle charging, and PTC[15] - The Group's self-developed "motor controller power brick" has achieved industry-leading levels in power density, integration, and reliability, with continued R&D into high-power density solutions combining silicon carbide and silicon[15] Body, Safety & Powertrain Systems Body Systems revenue decreased 26% to RMB 314.4 million due to strategic divestment of low-margin businesses, while Powertrain Systems grew 15% and Safety Systems increased 27% driven by active suspension and new project mass production - Body Systems business revenue decreased 26% to RMB 314.4 million, accounting for 10.6% of total revenue, primarily due to the Group's strategic divestment of some low-margin businesses[11][16] - Powertrain Systems solutions grew 15%, accounting for 6.2% of total revenue, benefiting from commercial vehicle market growth and accelerated electrification[11][16] - Safety Systems solutions revenue increased 27%, accounting for 15.2% of total revenue, primarily driven by increased adoption of active suspension systems and mass production of new projects in braking and steering applications[11][16] Intelligent Driving & Connectivity Intelligent Driving & Connectivity revenue remained stable at RMB 230.5 million, with the Group launching its first L3-capable system solution and actively developing solutions based on Horizon Journey® 6, including a new generation domain controller MADC4.0 for L2+ ADAS - Intelligent Driving & Connectivity business revenue was RMB 230.5 million, stable year-on-year, accounting for 7.8% of total revenue[11][17] - The Group has launched its first-generation L3-capable system solution and plans to optimize its cost-effectiveness for broader market applicability[17] - The Group is actively developing solutions related to Horizon Journey® 6, including a front-fusion perception solution and the new generation system-level domain controller solution MADC4.0 based on the Journey® 6E/M platform, supporting L2+ advanced driving assistance functions[17][18] Cloud Servers Cloud Servers business revenue surged 135% to RMB 255.4 million, driven by strong customer demand for AI services, leading many clients to increase investment in private servers and private clouds - Cloud Servers business revenue increased 135% to RMB 255.4 million, accounting for 8.6% of the Group's revenue[11][19] - The primary growth driver is customer demand for AI services, which has boosted the need for cloud servers, with many clients increasing investment in establishing private servers and private clouds[19] Services & Others Revenue from Services & Others accounted for 3.1% of total revenue, with the Group securing more client mass production project development mandates and nominations during the period - Revenue from Services & Others accounted for 3.1% of total revenue, with the Group securing more client mass production project development mandates and nominations during the period[11] Clients & Market Expansion OEMs and their Tier 1 suppliers remain the Group's primary end-customers, including China's top ten NEV passenger car brands, with 112 new mass production nominations, 10 of which involve export models or overseas clients, expanding reach to Japanese and European automakers - OEMs and their Tier 1 suppliers are the Group's primary end-customers, including China's top ten well-known new energy passenger vehicle brands[14] - The Group secured 112 new mass production nomination projects, with 10 involving export models or overseas client projects, expanding its client base to major Japanese and European automakers and Tier 1 suppliers[14] R&D & Group Development R&D is central to the Group's strategy, with H1 2025 R&D expenses at RMB 219.9 million, 7.4% of revenue, supported by 950 R&D personnel and extensive intellectual property, while ESG efforts continue, and the Nantong R&D base enhances power brick production R&D Investment & Achievements H1 2025 R&D expenses were RMB 219.9 million, 7.4% of revenue, with 950 R&D personnel, and the Group added 36 patents and 2 software copyrights, accumulating 394 patents and 329 software copyrights - H1 2025 R&D expenses were RMB 219.9 million, representing approximately 7.4% of the Group's revenue[20] - As of June 30, 2025, the Group had 950 full-time R&D technical personnel, accounting for 70.9% of its total workforce[20] - During the period, 36 new patents and 2 software copyrights were added, bringing the cumulative total to 394 patents and 329 software copyrights, with an additional 267 patents pending[20] ESG Practices The Group actively advances its ESG initiatives, setting GHG emission reduction targets, collaborating on green logistics, and enhancing product quality and safety through technological innovation to support a greener, safer, and smarter mobility ecosystem - The Group actively sets Greenhouse Gas (GHG) emission reduction targets (Scope 1 and Scope 2) and energy consumption reduction targets, collaborating with logistics providers to explore green mobility pilot projects[21] - Through intelligent driving solutions, energy-efficient autonomous driving systems, and AI-driven safety technologies, the Group enhances product quality and safety standards, supporting a greener, safer, and smarter mobility ecosystem[21] - The Group demonstrates stable performance in various ESG rating agencies, including QuantData (A), China Securities Index (BBB), China Chengxin Green Finance (BB), and MioTech (BB)[21] Collaboration & Testing Validation The Group partnered with eSOL Co., Ltd. to integrate its high-security RTOS platform into automotive electronics solutions, while its testing and validation center achieved CNAS re-accreditation and multiple project awards in chassis and safety systems - The Group partnered with eSOL Co., Ltd. to integrate its high-security and scalable Real-Time Operating System (RTOS) platform products into its automotive electronics and software solutions[22] - The testing and validation center passed the China National Accreditation Service for Conformity Assessment (CNAS) re-assessment, possessing capabilities for electromagnetic compatibility (EMC), electrical performance, and environmental reliability testing[22] - The chassis and safety systems segment received multiple project awards, with solutions covering steer-by-wire, air suspension, and chassis domain controllers, demonstrating technical advantages in high-voltage electronic control and functional safety[23] Nantong R&D Base The Nantong R&D base completed its Phase II renovation, adding 3,000 square meters, and establishing full power brick prototyping and small-batch delivery capabilities, aiming for million-unit scale inverter brick and power module delivery by 2027 - The Nantong R&D base completed its Phase II renovation, adding approximately 3,000 square meters of usable area, bringing the total building area to 16,000 square meters[24] - The base has established complete capabilities for power brick product prototyping and small-batch delivery, including laser cleaning, welding, EOL test lines, and AVI workstations[24] - The Nantong R&D base will support the Group in achieving million-unit scale delivery of inverter bricks and power modules by 2027, enhancing its competitiveness in the new energy vehicle business[24] Robotics Business Leveraging electrification and intelligent technology, the Group strategically entered robotics, developing the GRC1.0 high-performance controller solution based on the Digua Robot RDK S100 platform for embodied intelligent robots and industrial automation, anticipating rapid revenue growth - The Group successfully developed the GRC1.0 high-performance controller solution based on the Digua Robot RDK S100 intelligent computing platform, designed for embodied intelligent robots and industrial automation scenarios[25] - The GRC1.0 controller features core advantages such as a highly reliable system architecture, powerful real-time control capabilities, integration of advanced technologies (e.g., SLAM), and mass production-friendly design[25][26] - With the rapid development of the embodied intelligence industry, the proportion of robotics-related solutions in the Group's revenue is expected to maintain high growth[25] Outlook In H2, the global NEV market will be driven by China's leadership and emerging market vitality, prompting increased investment in NEV and autonomous driving technologies, while AI and cloud server integration will create opportunities across core businesses Market Trends & Business Strategy The H2 global NEV market will be driven by China's leadership and emerging market vitality, with domestic policies and supply chain advantages boosting NEV penetration, while AI and cloud server integration will create transformative opportunities for the Group's core businesses - In H2, the global new energy vehicle market will be driven by China's leading position and the vitality of emerging markets, with domestic policies and supply chain advantages further increasing NEV penetration[27] - The Group will steadfastly pursue technological innovation, continuously increasing investment in new energy vehicles and autonomous driving technologies[27] - The integration of Artificial Intelligence and cloud server technologies will create transformative opportunities for body control, safety systems, powertrain, and new energy vehicle businesses, with the Group collaborating with chip manufacturers and cloud service providers to build comprehensive solutions[27] R&D & International Expansion Intelligent driving and connectivity solutions are a long-term growth highlight, with the Group launching advanced domain control platforms for L3+ autonomous driving, deepening robotics collaboration, and anticipating over 100 new mass production nominations while accelerating international expansion - Intelligent Driving & Connectivity solutions are a long-term growth highlight for the Group, which is expected to secure more collaborations in L2+ advanced driving assistance domain controllers based on its prior technological accumulation and project experience[28] - The Group will launch advanced intelligent driving domain control platforms for L3 and above autonomous driving systems, further solidifying its business opportunities in the high-end market[28] - The Group anticipates over 100 new mass production nomination projects, covering chassis systems, Advanced Driver-Assistance Systems (ADAS), Motor Control Units (MCU), and Battery Management Systems (BMS), while accelerating its international expansion to support localized overseas supply chains[30][31] Financial Review Income Statement Analysis The Group's H1 2025 total revenue grew 5% to RMB 2,966.3 million, driven by safety systems and cloud servers, but gross profit decreased 11% to RMB 401.0 million, with profit for the period falling 50% to RMB 48.0 million Revenue For the six months ended June 30, 2025, the Group's total revenue increased 5% year-on-year to RMB 2,966.3 million, primarily driven by strong performance in the safety systems and cloud servers segments - Total revenue increased 5% year-on-year to RMB 2,966.3 million[32] - The main growth drivers were the Safety Systems segment (+27%) and Cloud Servers segment (+135%)[33] Gross Profit For the six months ended June 30, 2025, gross profit decreased 11% year-on-year to RMB 401.0 million, with the overall gross margin falling 2.4 percentage points to 13.5% from 15.9% in the prior year - Gross profit decreased 11% to RMB 401.0 million[34] - The overall gross margin was 13.5%, a 2.4 percentage point decrease from 15.9% in the prior year[34] Other Income & Gains Other income and gains increased 55% to RMB 19.2 million, primarily due to earlier receipt of government grants in the first half of the year compared to the prior period - Other income and gains increased 55% to RMB 19.2 million[35] - This was primarily due to earlier receipt of government grants in the first half of the year compared to the prior period[35] Selling & Distribution Expenses Selling and distribution expenses remained stable at RMB 48.0 million compared to the same period in 2024 - Selling and distribution expenses were RMB 48.0 million, remaining stable compared to the same period in 2024[36] Administrative Expenses Administrative expenses increased 3% to RMB 256.3 million, with total R&D expenses at RMB 219.9 million, representing 7.4% of revenue, primarily due to a slight increase in R&D personnel salaries - Administrative expenses were RMB 256.3 million, an increase of 3% compared to the same period in 2024[37] - Total R&D expenses were RMB 219.9 million, representing 7.4% of revenue, an increase of 2% compared to the same period in 2024, primarily due to a slight increase in R&D personnel salaries[37] Other Expenses Other expenses increased 5% to RMB 30.7 million, primarily due to increased exchange losses - Other expenses were RMB 30.7 million, an increase of 5% compared to the prior year, primarily due to increased exchange losses[38] Finance Costs Finance costs decreased 5% to RMB 53.8 million, mainly due to a higher proportion of RMB loans in the Group's borrowings, reducing overall interest expenses - Finance costs were RMB 53.8 million, a 5% decrease compared to the same period in 2024[39] - This was primarily due to an increased proportion of RMB loans in the Group's borrowings, reducing overall interest expenses[39] Income Tax Credit Income tax credit increased 23% to RMB 16.5 million, mainly due to a decrease in profit before tax compared to the prior period while deferred tax recognition remained stable - Income tax credit was RMB 16.5 million, an increase of 23% compared to the same period in 2024[40] - This was primarily due to a decrease in profit before tax compared to the same period in 2024, while deferred tax recognition remained stable[40] Profit for the Period The Group's profit for the period decreased 50% from RMB 95.0 million for the six months ended June 30, 2024, to RMB 48.0 million for the six months ended June 30, 2025 - Profit for the period decreased 50% to RMB 48.0 million[41] Liquidity & Financial Resources As of June 30, 2025, the Group's cash and cash equivalents were RMB 678.5 million, with net current assets of RMB 1,375.6 million, a net debt-to-equity ratio of 47%, and outstanding bank loans of RMB 1,636.3 million - As of June 30, 2025, cash and cash equivalents were RMB 678.5 million (December 31, 2024: RMB 916.2 million)[42] - Net current assets were RMB 1,375.6 million (December 31, 2024: RMB 1,716.4 million)[42] - The net debt-to-equity ratio was 47% (December 31, 2024: 50%), with outstanding bank loans of RMB 1,636.3 million (December 31, 2024: RMB 2,038.4 million)[42] Dividends The Directors do not recommend the payment of an interim dividend for the review period - The Directors do not recommend the payment of a dividend for the review period[44] Other Financial Matters The Group had no significant post-balance sheet events, major investments, acquisitions, or disposals, nor significant contingent liabilities during the review period, with capital commitments increasing to RMB 23.9 million, and exchange rate risk managed through various strategies Capital Commitments As of June 30, 2025, the Group's contracted but unprovided capital commitments amounted to RMB 23.9 million, an increase from RMB 7.2 million as of December 31, 2024 - As of June 30, 2025, contracted but unprovided capital commitments were RMB 23.9 million (December 31, 2024: RMB 7.2 million)[46] Major Investments, Acquisitions & Disposals During the review period, the Group did not undertake any significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures - During the review period, the Group did not undertake any significant investments, major acquisitions, or disposals of subsidiaries, associates, or joint ventures[47] Contingent Liabilities As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[48] Exchange Rate Risk The Group operates primarily in China and faces foreign exchange risk from RMB fluctuations against other currencies, which it manages by reducing net foreign currency positions and adjusting customer prices - The Group faces foreign exchange risk arising from fluctuations in exchange rates between the RMB and other currencies used in its operations[49] - The Group mitigates losses from foreign currency exchange rate fluctuations by reducing net foreign currency positions, adjusting customer prices, and considering foreign exchange forward contracts when necessary[49] Use of Proceeds from Global Offering The net proceeds from the global offering were HKD 766.7 million (approx. RMB 655.4 million), with RMB 608.4 million utilized by June 30, 2025, and RMB 47.0 million for acquiring R&D capabilities expected to be fully used by end of 2026 - The net proceeds from the global offering were HKD 766.7 million (equivalent to RMB 655.4 million)[52] Use of Proceeds from Global Offering (RMB million) | Use of Proceeds | Planned Use | % of Total Net Proceeds | Actual Utilization as of June 30, 2025 | Unutilized Net Proceeds as of June 30, 2025 | Expected Timeline for Utilizing Remaining Unutilized Net Proceeds | | :--- | :--- | :--- | :--- | :--- | :--- | | Expanding R&D Capabilities | 196.6 | 30 | 196.6 | 0 | Not applicable | | Strengthening R&D Infrastructure | 196.6 | 30 | 196.6 | 0 | Not applicable | | Acquiring R&D Capabilities | 196.6 | 30 | 149.6 | 47.0 | Expected to be fully utilized by end of 2026* | | General Working Capital | 65.6 | 10 | 65.6 | 0 | Not applicable | | Total | 655.4 | 100 | 608.4 | 47.0 | | - The timeline for acquiring R&D capabilities has been extended to end of 2026 due to the need for more time to identify and select suitable potential investment targets[53] Corporate Governance & Other Information Employees & Remuneration Policy As of June 30, 2025, the Group employed 1,340 staff, with total employee costs of RMB 252.4 million, representing 8.5% of revenue, offering competitive remuneration and training, and providing share options to eligible employees - As of June 30, 2025, the Group employed 1,340 staff (June 30, 2024: 1,373 staff)[50] - Total employee costs were RMB 252.4 million, accounting for 8.5% of the Group's revenue for the period[50] - The Group granted 70,621,550 outstanding share options to eligible employees to enhance the attractiveness of remuneration packages[50] Corporate Governance Practices The Company is committed to high corporate governance standards, adopting the Listing Rules' Corporate Governance Code, and despite the Chairman and Co-CEO roles being combined, the Board ensures effective checks and balances - The Company has adopted the Code Provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules[55] - The roles of Chairman and Co-Chief Executive Officer are held by Mr. Lu Yingming, deviating from Code Provision C.2.1, but the Board believes this arrangement enhances decision-making and execution efficiency, with appropriate checks and balances implemented through the Board and independent non-executive directors[55] - All Directors complied with the Model Code for Securities Transactions by Directors of Listed Issuers and written guidelines during the review period and up to the date of this report[57] Audit Committee The Audit Committee, comprising three independent non-executive directors chaired by Mr. Xu Rongguo, reviews and oversees the Group's financial reporting and internal controls, having approved the unaudited condensed consolidated interim financial statements - The Audit Committee comprises three independent non-executive directors, with Mr. Xu Rongguo as Chairman, possessing the financial expertise and experience required by the Listing Rules[58] - The Committee has reviewed the Group's unaudited condensed consolidated interim financial statements for the review period and deemed them compliant with relevant accounting standards, rules, and regulations[58] Publication of Information This results announcement will be published on the HKEX and Company websites, with the interim report to be dispatched to shareholders in due course - This results announcement and the interim report will be published on the **HKEX website (www.hkexnews.hk) and the Company's website (www.intron-tech.com)**[59](index=59&type=chunk) Condensed Consolidated Financial Statements Consolidated Income Statement For the six months ended June 30, 2025, the Group reported revenue of RMB 2,966,322 thousand and gross profit of RMB 401,046 thousand, with profit for the period decreasing 50% to RMB 47,975 thousand, and basic and diluted EPS at RMB 4.57 cents Consolidated Income Statement Key Data (RMB thousand) | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Revenue | 2,966,322 | 2,835,031 | | Gross Profit | 401,046 | 451,966 | | Profit Before Tax | 31,441 | 81,693 | | Income Tax Credit | 16,534 | 13,400 | | Profit for the Period | 47,975 | 95,093 | | Profit Attributable to Owners of the Parent | 49,740 | 97,678 | | Basic Earnings Per Share (RMB cents) | 4.57 | 8.98 | | Diluted Earnings Per Share (RMB cents) | 4.57 | 8.98 | Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, the Group's profit for the period was RMB 47,975 thousand, with net other comprehensive income of RMB 5,796 thousand, resulting in total comprehensive income of RMB 53,771 thousand Consolidated Statement of Comprehensive Income Key Data (RMB thousand) | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Profit for the Period | 47,975 | 95,093 | | Exchange differences on translating foreign operations | 17,499 | (7,918) | | Exchange differences on translating the Company's accounts | (11,703) | 6,024 | | Other comprehensive income for the period, net of tax | 5,796 | (1,894) | | Total comprehensive income for the period | 53,771 | 93,199 | | Attributable to owners of the parent | 55,536 | 95,784 | Consolidated Statement of Financial Position As of June 30, 2025, the Group reported total non-current assets of RMB 1,113,067 thousand, total current assets of RMB 4,488,321 thousand, and net current assets of RMB 1,375,558 thousand, with net assets totaling RMB 2,476,023 thousand Consolidated Statement of Financial Position Key Data (RMB thousand) | Indicator | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Total Non-current Assets | 1,113,067 | 1,073,047 | | Total Current Assets | 4,488,321 | 5,037,226 | | Total Current Liabilities | 3,112,763 | 3,320,788 | | Net Current Assets | 1,375,558 | 1,716,438 | | Net Assets | 2,476,023 | 2,481,266 | | Equity Attributable to Owners of the Parent | 2,476,334 | 2,479,826 | Notes to the Financial Statements General Information & Basis of Presentation The Group develops automotive component engineering solutions for major Chinese car manufacturers, with financial statements prepared under HKAS 34 and Listing Rules Appendix D2, presented at historical cost in RMB - The Group focuses on developing automotive component engineering solutions for major Chinese car manufacturers[64] - The financial statements are prepared in accordance with HKAS 34 'Interim Financial Reporting' issued by the HKICPA and Appendix D2 of the Listing Rules[65] - The financial statements are prepared under the historical cost convention and presented in RMB[65] Changes in Accounting Policies The accounting policies adopted are consistent with the 2024 annual consolidated financial statements, except for the initial adoption of HKAS 21 amendments 'Lack of Exchangeability', which had no significant financial impact - The accounting policies adopted for these financial statements are consistent with those applied in the 2024 annual consolidated financial statements, except for the initial adoption of HKAS 21 amendments 'Lack of Exchangeability' issued by the HKICPA for the current period's financial information[66][67] - The new and revised standards have no significant financial impact on these financial statements[67] Operating Segments & Geographical Information The Group operates as a single reportable segment, with the vast majority of H1 2025 revenue (RMB 2,756,785 thousand) and non-current assets (RMB 807,683 thousand) originating from Mainland China - The Group has only one reportable operating segment[68] External Customer Revenue by Customer Location (RMB thousand) | Region | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Hong Kong | 197,777 | 115,311 | | Mainland China | 2,756,785 | 2,698,257 | | Other Countries/Regions | 11,760 | 21,463 | | Total | 2,966,322 | 2,835,031 | Non-current Assets by Asset Location (RMB thousand) | Region | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Hong Kong | 98,449 | 100,865 | | Mainland China | 807,683 | 802,633 | | Other Countries/Regions | 1,064 | 1,458 | | Total | 907,196 | 904,956 | - No single customer's revenue accounted for 10% or more of the Group's revenue during the period, thus no corresponding revenue is disclosed for such customers[72] Details of Revenue, Other Income & Gains The Group's revenue primarily consists of product sales (RMB 2,932,332 thousand) and consulting services (RMB 33,990 thousand), with other income mainly from government grants and bank interest, and gains from fair value derivatives Revenue, Other Income & Gains Analysis (RMB thousand) | Category | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Revenue from contracts with customers | | | | －Sales of products | 2,932,332 | 2,785,967 | | －Rendering of consulting services | 33,990 | 49,064 | | Total other income | 14,996 | 7,835 | | Government grants | 7,664 | 2,167 | | Bank interest income | 6,135 | 3,090 | | Gains | | | | Gains on derivative financial instruments at fair value through profit or loss | 4,181 | 4,505 | | Total other income and gains | 19,177 | 12,340 | Components of Profit Before Tax Profit before tax is presented after deducting cost of inventories sold (RMB 2,539,342 thousand), depreciation of property, plant and equipment (RMB 29,418 thousand), and right-of-use assets (RMB 11,447 thousand), with total R&D costs of RMB 219,869 thousand Profit Before Tax Deductions/(Credits) (RMB thousand) | Item | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Cost of inventories sold | 2,539,342 | 2,360,660 | | Depreciation of property, plant and equipment | 29,418 | 30,309 | | Depreciation of right-of-use assets | 11,447 | 12,676 | | Total R&D costs | 219,869 | 215,043 | | Employee benefit expenses (excluding directors' and co-CEOs' emoluments) | 220,050 | 209,250 | | Write-down of inventories to net realizable value | 30,683 | 7,582 | | Government grants | (7,664) | (2,167) | | Bank interest income | (6,135) | (3,090) | | Net exchange losses | 30,401 | 29,121 | Income Tax Details The Group is subject to income tax in various jurisdictions, with Hong Kong profits tax at 16.5% and Mainland China corporate income tax at 25%, with preferential rates for high-tech and small/micro enterprises, resulting in a total tax credit of RMB 16,534 thousand for the period - Hong Kong profits tax is provided at a rate of 16.5%, with some subsidiaries applying a two-tiered profits tax system[74] - Mainland China corporate income tax has a statutory rate of 25%, with high-tech enterprises enjoying a preferential rate of 15%, and small and micro-enterprises enjoying preferential rates from 5% to 25%[74][75] Total Income Tax Credit (RMB thousand) | Item | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Current - Mainland China tax for the period | 350 | 38 | | Current - Other regions tax for the period | 20,896 | 27,134 | | Deferred tax | (37,780) | (40,572) | | Total tax credit for the period | (16,534) | (13,400) | Earnings Per Share Calculation Basic and diluted earnings per share were both RMB 4.57 cents, calculated based on profit attributable to ordinary equity holders of RMB 49,740 thousand and 1,087,838,400 weighted average ordinary shares outstanding, with no dilution adjustment due to share option exercise price - Basic and diluted earnings per share were both RMB 4.57 cents[79] - The calculation is based on profit attributable to ordinary equity holders of the parent of RMB 49,740 thousand and a weighted average number of ordinary shares outstanding of 1,087,838,400 shares during the period[79][81][82] - No adjustment was made for diluted basic earnings per share as the exercise price of outstanding share options was higher than the average market price of the shares during the period[79] Trade & Bills Receivables As of June 30, 2025, total trade and bills receivables were RMB 1,685,814 thousand, including trade receivables of RMB 1,545,994 thousand and bills receivables of RMB 157,091 thousand, with credit terms generally within three months and strict control over overdue amounts Trade & Bills Receivables (RMB thousand) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Trade receivables | 1,545,994 | 2,311,500 | | Bills receivables | 157,091 | 54,144 | | Impairment | (17,271) | (12,774) | | Total | 1,685,814 | 2,352,870 | - Credit terms are generally within three months, and the Group maintains strict control over overdue amounts[83] - Trade receivables include amounts due from related parties of RMB 12,831 thousand[84] Trade & Bills Payables As of June 30, 2025, total trade and bills payables were RMB 611,124 thousand, comprising trade payables of RMB 425,250 thousand and bills payables of RMB 185,874 thousand, which are interest-free and generally repayable within three months Trade & Bills Payables (RMB thousand) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Trade payables | 425,250 | 502,664 | | Bills payables | 185,874 | 72,283 | | Total | 611,124 | 574,947 | - Trade payables are interest-free and generally repayable within three months[86] Share Capital As of June 30, 2025, the Company's authorized share capital was 2,400,000,000 ordinary shares of HKD 0.01 each, with issued and fully paid share capital of 1,087,838,400 ordinary shares, totaling RMB 9,249 thousand - Authorized share capital was 2,400,000,000 ordinary shares of HKD 0.01 each, with a par value of HKD 24,000 thousand[87] - Issued and fully paid share capital was 1,087,838,400 ordinary shares of HKD 0.01 each, totaling RMB 9,249 thousand[87]