凌雄科技(02436) - 2025 - 中期业绩

Company Overview and Financial Highlights This section provides an overview of Lingxiong Technology Group's business model and key financial performance for the period Company Profile and Business Model Lingxiong Technology Group Co., Ltd. is a Cayman Islands-incorporated company listed on the HKEX, providing equipment full lifecycle management solutions in China - Lingxiong Technology Group Co., Ltd. (Stock Code: 2436) is incorporated in the Cayman Islands, with its shares listed on the Main Board of the Hong Kong Stock Exchange[2] - The Group is a leading provider of equipment full lifecycle management solutions in China, offering equipment recycling, equipment subscription, and IT technical subscription services[4] Financial Summary For H1 2025, the Group's revenue grew by 18.5% to RMB 1,116.7 million, achieving a net profit of RMB 4.9 million and adjusted EBITDA growth of 38.5% Key Financial Data for H1 2025 (Unaudited) | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Revenue | 1,116.7 | 942.6 | Growth 18.5% | | Gross Profit | 101.9 | 92.9 | Growth 9.7% | | Net Profit | 4.9 | (40.6) | Turnaround to Profit | | Adjusted Profit | 18.6 | (22.3) | Turnaround to Profit | | Adjusted EBITDA | 194.1 | 140.2 | Growth 38.5% | Management Discussion and Analysis This section reviews the Group's strong H1 2025 performance, including its turnaround to profit, industry recognition, and future strategic outlook Business Review The Group demonstrated strong development in H1 2025, achieving a turnaround to profit driven by service scale expansion, refined expense management, process optimization, and enhanced digital operational efficiency - The Group recorded a net profit of approximately RMB 4.9 million in H1 2025, compared to a net loss of approximately RMB 40.6 million in the same period of 2024, achieving a turnaround to profit[4] - The turnaround to profit was primarily attributable to continuous expansion of service scale, refined expense management, process optimization, and enhanced digital operational efficiency[4] Overall Performance and Industry Recognition The company achieved significant financial improvement in H1 2025 and received multiple national industry recognitions, demonstrating its leadership in sustainable development and innovation - In January 2025, the Group was selected as one of the second batch of national service industry standardization pilot enterprises (commercial circulation special project)[5] - In April 2025, the Group was selected as one of the first national pilot enterprises for second-hand goods circulation, reinforcing its role in implementing national sustainable development strategies and IT equipment reuse[5] - In July 2025, the Group was recognized as a Shenzhen Gazelle Enterprise, reflecting its strong innovation capabilities, rapid growth momentum, and significant industry development potential[5] Core Business Segment Performance The Group's three core business segments showed varied performance: equipment recycling revenue significantly increased by 24.4%, equipment subscription service revenue grew by 4.5%, while IT technical subscription service revenue slightly decreased by 0.5% Equipment Recycling Business Equipment recycling business revenue significantly increased by 24.4% year-on-year to RMB 848.1 million, primarily driven by a 19.9% increase in customer numbers and a 3.7% growth in average revenue per customer Key Operating Data for Equipment Recycling Business | Metric | H1 2025 | H1 2024 | Growth Rate | | :--- | :--- | :--- | :--- | | Revenue (RMB million) | 848.1 | 681.9 | 24.4% | | Number of Devices Sold (units) | 424,710 | 449,029 | -5.4% | | Number of Equipment Recycling Customers | 1,570 | 1,309 | 19.9% | | Average Revenue per Equipment Recycling Customer (RMB) | 540,206 | 520,896 | 3.7% | - The equipment recycling business provides the Group with a stable source of retired equipment, which is then refurbished for equipment subscription services or sold through proprietary quotation platforms[8] Equipment Subscription Services Equipment subscription business revenue grew by 4.5% to RMB 191.9 million, primarily driven by an 11.7% increase in total equipment subscription volume, with second-hand equipment outperforming new equipment Equipment Subscription Service Revenue and Subscription Volume | Metric | H1 2025 | H1 2024 | Growth Rate | | :--- | :--- | :--- | :--- | | Revenue (RMB thousand) | 191,914 | 183,730 | 4.5% | | - New Equipment Revenue | 154,945 | 151,551 | 2.2% | | - Second-hand Equipment Revenue | 36,969 | 32,179 | 14.9% | | Total Equipment Subscription Volume (units) | 3,475,364 | 3,112,036 | 11.7% | | - New Equipment Subscription Volume | 2,803,650 | 2,505,320 | 11.9% | | - Second-hand Equipment Subscription Volume | 671,714 | 606,716 | 10.7% | - Equipment subscription services primarily include IT equipment selection, assembly, pre-installation configuration, and customized system settings, offering short-term and long-term subscription services targeting SMEs[8] IT Technical Subscription Services IT technical subscription service revenue slightly decreased by 0.5% to RMB 76.6 million, primarily due to a slight decline in business opportunities, with short-term subscriptions decreasing and long-term subscriptions slightly increasing IT Technical Subscription Service Revenue | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Growth Rate | | :--- | :--- | :--- | :--- | | Total Revenue | 76,633 | 77,015 | -0.5% | | - Long-term Subscription | 59,608 | 58,685 | 1.6% | | - Short-term Subscription | 17,025 | 18,330 | -7.1% | - IT technical subscription services primarily complement equipment subscription services, and also independently provide IT equipment troubleshooting and system upgrade services[8] Future Outlook The Group is confident in its future growth, aiming to solidify its IT equipment full lifecycle service platform through network expansion, digitalization, industry standardization, and sustainable practices - The Group will continue to expand its service network, further broaden its layout in key regional markets, and enhance operational efficiency[12] - Accelerate the deployment of data-driven tools and automation technologies to support high-quality, standardized service delivery[12] - Actively participate in national pilot projects to set industry standards, gain first-mover advantage, and deepen environmental practices to promote reliable reuse of IT equipment[12] Financial Review This section provides a detailed financial review, covering revenue, cost, profit, balance sheet, liquidity, and other financial information Revenue Analysis The Group's total revenue for H1 2025 increased by 18.5% to RMB 1,116.7 million, primarily driven by growth in equipment recycling and equipment subscription services, with equipment recycling being the largest revenue source - Total revenue for the period was approximately RMB 1,116.7 million, an increase of approximately 18.5% compared to the same period in 2024[13] - Revenue growth was primarily attributable to sales growth in the equipment recycling business segment and equipment subscription services segment[13] Revenue Overview and Composition The Group's revenue primarily derives from equipment recycling, equipment subscription, and IT technical subscription services, with equipment recycling accounting for the largest share at 76.0% and experiencing the fastest growth Revenue Breakdown by Service Line | Service Line | H1 2025 (RMB thousand) | Share (%) | H1 2024 (RMB thousand) | Share (%) | Growth Rate (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Equipment Recycling Revenue | 848,124 | 76.0 | 681,853 | 72.3 | 24.4 | | Equipment Subscription Services | 191,914 | 17.2 | 183,730 | 19.5 | 4.5 | | IT Technical Subscription Services | 76,633 | 6.8 | 77,015 | 8.2 | -0.5 | | Total | 1,116,671 | 100 | 942,598 | 100 | 18.5 | Revenue Details by Business Line Equipment recycling revenue increased due to more customers and higher average revenue, particularly from higher-priced IT equipment sales; equipment subscription revenue grew with increased subscription volume, while IT technical subscription revenue slightly declined due to fewer business opportunities - The increase in equipment recycling revenue was primarily due to an increase in the number of equipment recycling customers from 1,309 to 1,570, an increase in average revenue per customer from RMB 520,896 to RMB 540,206, and an increased proportion of higher-priced laptops and other IT equipment sold[14] - The increase in revenue from equipment subscription services was primarily due to an increase in total equipment subscription volume from 3,112,036 units to 3,475,364 units[16] - The slight decrease in revenue from IT technical subscription services was primarily due to a slight decline in business opportunities identified by the IT technical subscription services segment[17] Equipment Recycling Business Revenue by IT Device Type | IT Device Type | H1 2025 (RMB thousand) | Share (%) | H1 2024 (RMB thousand) | Share (%) | Growth Rate (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Tablets and Mobile Phones | 413,813 | 48.8 | 470,348 | 69.0 | -12.0 | | Laptops and Other IT Equipment | 434,311 | 51.2 | 211,505 | 31.0 | 105.3 | | Total | 848,124 | 100 | 681,853 | 100 | 24.4 | Regional Revenue Distribution Shenzhen remains the Group's largest revenue source, accounting for 80.0% of total revenue, though its share slightly decreased, while Shanghai's revenue grew significantly, increasing its share from 5.8% to 8.5% Revenue Breakdown by Geographical Location | Geographical Location | H1 2025 (RMB thousand) | Share (%) | H1 2024 (RMB thousand) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Shenzhen | 893,391 | 80.0 | 781,815 | 82.9 | | Shanghai | 95,070 | 8.5 | 54,335 | 5.8 | | Wuhan | 20,498 | 1.8 | 20,149 | 2.1 | | Beijing | 52,570 | 4.7 | 45,115 | 4.8 | | Guangzhou | 22,068 | 2.0 | 22,154 | 2.4 | | Others | 33,074 | 3.0 | 19,030 | 2.0 | | Total | 1,116,671 | 100.0 | 942,598 | 100.0 | Cost and Gross Profit Analysis Cost of sales increased in line with revenue growth, leading to a slight decrease in overall gross profit margin, while equipment subscription services saw improved margins and equipment recycling experienced a decline Cost of Sales Cost of sales for the period was approximately RMB 1,014.8 million, a year-on-year increase consistent with revenue growth, primarily due to the cost of inventories sold increasing from RMB 662.0 million to RMB 818.6 million - Cost of sales increased to approximately RMB 1,014.8 million from approximately RMB 849.7 million in the same period of 2024[19] - The increase in cost of sales was primarily attributable to the cost of inventories sold increasing from approximately RMB 662.0 million to approximately RMB 818.6 million[19] Gross Profit and Gross Profit Margin The Group's gross profit increased by 9.7% to RMB 101.9 million, but the overall gross profit margin slightly decreased to 9.1%, with varied performance across service lines Gross Profit and Gross Profit Margin by Service Line | Service Line | H1 2025 Gross Profit (RMB thousand) | H1 2025 Gross Profit Margin (%) | H1 2024 Gross Profit (RMB thousand) | H1 2024 Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Equipment Recycling Revenue | 4,396 | 0.5 | 7,677 | 1.1 | | Equipment Subscription Services | 51,670 | 26.9 | 39,746 | 21.6 | | IT Technical Subscription Services | 45,798 | 59.8 | 45,457 | 59.0 | | Total | 101,894 | 9.1 | 92,880 | 9.9 | - Gross profit margin for the equipment recycling business decreased to 0.5%, primarily because the increase in cost of goods sold exceeded the increase in revenue[21] - Gross profit margin for equipment subscription services increased to 26.9%, primarily due to revenue growth exceeding service cost growth, and the average monthly utilization rate increasing from 86.5% to 88.8%[22][23] - Gross profit margin for IT technical subscription services increased to 59.8%, primarily attributable to reduced service costs due to efficiency improvement measures[24] Expense and Profit Analysis The Group achieved a significant turnaround to profit in H1 2025, driven by increased revenue and gross profit, coupled with effective control and reduction in operating expenses, while finance costs increased due to business expansion - A profit attributable to owners of the Company of approximately RMB 5.7 million was recorded for the period, compared to a loss of approximately RMB 39.8 million in the same period of 2024, primarily due to increased revenue and gross profit, and reduced operating expenses[31] Other Income Other income decreased by 3.9% year-on-year to RMB 13.1 million, primarily due to a reduction in customer compensation for damaged equipment - Other income decreased by approximately 3.9% from approximately RMB 13.6 million to approximately RMB 13.1 million, due to a reduction in customer compensation for damaged equipment received during the period[25] Operating Expenses The Group effectively controlled operating expenses, with distribution and selling expenses, administrative expenses, and R&D expenses all decreasing year-on-year, primarily due to refined management, utilization of internal teams, and successful R&D project delivery Distribution and Selling Expenses Distribution and selling expenses decreased by 19.6% year-on-year to RMB 62.1 million, with its percentage of revenue falling from 8.2% to 5.6%, primarily due to refined expense management and a shift to internal sales and marketing teams - Distribution and selling expenses decreased by approximately 19.6% from approximately RMB 77.3 million to approximately RMB 62.1 million[26] - The decrease was primarily due to reduced staff costs following the implementation of refined expense management measures, and lower promotion expenses resulting from a shift from engaging external marketing experts to utilizing internal sales and marketing teams[26] Administrative Expenses Administrative expenses decreased by 9.7% year-on-year to RMB 42.5 million, with its percentage of revenue falling from 5.0% to 3.8%, primarily due to a reduction in share-based payments - Administrative expenses decreased by approximately 9.7% from approximately RMB 47.1 million to approximately RMB 42.5 million, primarily due to a reduction in share-based payments of approximately RMB 6.1 million[27] Research and Development Expenses R&D expenses decreased by 38.0% year-on-year to RMB 9.0 million, with its percentage of revenue falling from 1.5% to 0.8%, primarily due to reduced costs from successful R&D project delivery, organizational streamlining, and productivity improvements - R&D expenses decreased by approximately 38.0% from approximately RMB 14.5 million to approximately RMB 9.0 million[28] - The decrease was primarily due to reduced costs from the successful delivery of several R&D projects, as well as lower staff-related expenses resulting from organizational streamlining and productivity improvements[28] Finance Costs and Income Tax Finance costs increased by 5.9% year-on-year to RMB 25.0 million due to increased borrowings for business expansion, while income tax credit decreased from RMB 3.5 million to RMB 0.8 million - Finance costs increased by approximately 5.9% from approximately RMB 23.6 million to approximately RMB 25.0 million, due to increased borrowings for working capital to support business expansion during the period[29] - An income tax credit of approximately RMB 0.8 million was recorded for the period, compared to approximately RMB 3.5 million in the same period of 2024[30] Net Profit and Adjusted Profit The Group successfully achieved a turnaround to profit, recording a profit attributable to owners of the Company of approximately RMB 5.7 million, with adjusted profit and adjusted EBITDA also showing significant improvement - A profit and total comprehensive income attributable to owners of the Company of approximately RMB 5.7 million was recorded for the period, compared to a loss and total comprehensive expense of approximately RMB 39.8 million in the same period of 2024[31] - Adjusted profit (non-IFRS measure) was approximately RMB 18.6 million, compared to an adjusted loss of approximately RMB 22.3 million in the same period of 2024[32] - Adjusted EBITDA (non-IFRS measure) increased by approximately 38.5% from approximately RMB 140.2 million to approximately RMB 194.1 million[33] Reconciliation of Non-IFRS Measures to the Most Directly Comparable IFRS Performance Measures | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit / (Loss) for the period | 4,908 | (40,583) | | Add: Share-based payment expenses | 9,585 | 18,332 | | Add: Exchange losses / (gains) | 4,152 | (53) | | Adjusted Profit / (Loss) | 18,645 | (22,304) | | EBITDA | 180,392 | 121,880 | | Add: Share-based payment expenses | 9,585 | 18,332 | | Add: Exchange losses / (gains) | 4,152 | (53) | | Adjusted EBITDA | 194,129 | 140,159 | Balance Sheet Analysis As of June 30, 2025, the Group's total current assets increased by 7.8%, and the current ratio improved to 1.3 times, with significant changes in receivables, inventories, and property, plant and equipment Current Assets Total current assets were approximately RMB 962.7 million, an increase of 7.8% compared to December 31, 2024, with the current ratio improving to 1.3 times, driven by a significant decrease in trade and lease receivables and an increase in inventories - As of June 30, 2025, the Group's current assets were approximately RMB 962.7 million, an increase of approximately 7.8% from approximately RMB 893.4 million as of December 31, 2024[37] - The current ratio was approximately 1.3 times (December 31, 2024: approximately 1.2 times)[37] - Inventories increased from approximately RMB 102.8 million to approximately RMB 135.0 million, primarily due to increased demand from upstream suppliers for disposal of retired IT equipment towards the end of the period[39] - Trade and lease receivables decreased from approximately RMB 255.6 million to approximately RMB 132.0 million, primarily due to reduced credit terms offered to customers and enhanced risk management processes[40] Non-current Assets Property, plant and equipment and right-of-use assets decreased to RMB 719.8 million, primarily due to a reduction in purchases of property, plant and equipment during the period - Property, plant and equipment and right-of-use assets decreased from approximately RMB 743.5 million to approximately RMB 719.8 million, due to a reduction in purchases of property, plant and equipment during the period compared to the same period in 2024[38] Liabilities Trade payables decreased, reflecting timely settlement, while other payables and accrued expenses increased, primarily due to higher accrued expenses - Trade payables were approximately RMB 92.0 million, a decrease of approximately RMB 15.4 million from approximately RMB 107.4 million as of December 31, 2024, due to timely settlement of trade payables[42] - Other payables and accrued expenses were approximately RMB 74.2 million, an increase of approximately RMB 6.5 million from approximately RMB 67.7 million as of December 31, 2024, due to an increase in accrued expenses[43] Liquidity and Capital Resources The Group primarily funds its cash requirements through cash generated from operations and other debt financing, with bank balances and cash significantly increasing, and the gearing ratio remaining stable around 113% - During the period, cash requirements were primarily funded by cash generated from operations and other debt financing[44] Cash and Borrowings Bank balances and cash increased to RMB 386.2 million, primarily due to higher cash generated from business operations, while total bank and other borrowings increased to approximately RMB 852.3 million - As of June 30, 2025, bank balances and cash were approximately RMB 386.2 million (December 31, 2024: approximately RMB 295.9 million), with the increase primarily due to higher cash generated from business operations[45] - As of June 30, 2025, bank borrowings were approximately RMB 550.3 million, and other borrowings were approximately RMB 302.0 million, totaling approximately RMB 852.3 million[46] - Borrowings are primarily denominated in RMB, with maturities ranging from one to three years, and effective annual interest rates ranging from 3.5% to 7.7%[46] Gearing Ratio The gearing ratio as of June 30, 2025, was 113.1%, a slight increase from 113.0% as of December 31, 2024, indicating a largely stable leverage level - The gearing ratio was 113.1% as of June 30, 2025 (December 31, 2024: 113.0%)[47] Other Financial Information There were no significant investments, acquisitions, or disposals, nor any material contingent liabilities during the period, and the Group primarily settles transactions in RMB without a foreign exchange hedging policy - There were no significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures during the period[48] - There are no future plans for material investments or capital assets during the period, but the Group will continue to seek new business development opportunities[49] - As of June 30, 2025, there were no material contingent liabilities[50] - Most of the Group's transactions are settled in RMB, with a small portion settled in HKD and USD, and currently no foreign exchange hedging policy is adopted[51] Other Information This section covers employee and remuneration policies, events after the reporting period, corporate governance, and dividend policy Employees and Remuneration Policy As of June 30, 2025, the Group had 942 full-time employees, offering competitive remuneration, performance bonuses, and other incentives, while emphasizing employee training and development to maintain a competitive edge - As of June 30, 2025, the Group had 942 full-time employees (December 31, 2024: 970 full-time employees)[52] - Employee remuneration (excluding directors' remuneration) was approximately RMB 86.6 million (same period in 2024: approximately RMB 93.8 million)[52] - The company provides employees with competitive remuneration, performance bonuses, other incentive measures, on-the-job training, and regular seminars, and has established LX Brothers and Beauty Bear employee incentive schemes[52] Events After Reporting Period As of the date of this announcement, no other events have occurred after the reporting period that would have a material impact on the Group's operations and financial performance and require disclosure - No other events have occurred after June 30, 2025, and up to the date of this announcement that would have a material impact on the Group's operations and financial performance and require disclosure[53] Corporate Governance The Group has adopted the HKEX Corporate Governance Code, and despite the Chairman and CEO roles being combined, the Board believes this arrangement serves the overall interests of the company and shareholders, with all Directors confirming compliance with securities transaction standards - The Group has adopted the Corporate Governance Code set out in Appendix C1 Part 2 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[54] - The roles of Chairman and Chief Executive Officer are held by Mr. Hu Zuoxiong, and the Board believes this arrangement is most appropriate, beneficial to the Group's management, and in the overall interests of the company and shareholders[54] - All Directors confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers during the period[56] - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the period[57] Dividend Policy The Board resolved not to declare an interim dividend for the period, and the Company has not declared or paid any dividends since its incorporation, with no intention to do so since the end of the reporting period - The Board resolved not to declare an interim dividend for the period[59] - The Company has not declared or paid any dividends for the six months ended June 30, 2025 and 2024 since its incorporation, and does not intend to declare any dividends since the end of the reporting period[78] Notes to the Condensed Consolidated Financial Statements This section provides detailed notes on the condensed consolidated financial statements, including general information, accounting policies, revenue and expense breakdowns, taxation, and receivables/payables General Information and Basis of Preparation The Company is incorporated in the Cayman Islands and listed on the HKEX, with its condensed consolidated financial statements prepared in RMB according to IAS 34 and Listing Rules, consistent with 2024 annual report policies - The Company is an exempted company incorporated in the Cayman Islands, with its shares listed on the Main Board of The Stock Exchange of Hong Kong Limited[64] - The condensed consolidated financial statements have been prepared in accordance with International Accounting Standard 34 and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[66] - The condensed consolidated financial statements are presented in RMB, the Company's functional currency[65] Accounting Policies and Segment Information The Group adopted all new and revised IFRS effective January 1, 2025, without material changes, and segment information is primarily categorized by equipment recycling and equipment subscription services, with geographical data provided - The Group has adopted all new and revised International Financial Reporting Standards issued by the International Accounting Standards Board that are relevant to its operations and effective for the accounting period beginning on January 1, 2025, without material changes[67] - The Group's reportable segments include equipment recycling business and equipment subscription services[69] Revenue and Non-current Assets by Geographical Area | Region | H1 2025 Revenue (RMB thousand) | H1 2024 Revenue (RMB thousand) | Non-current Assets as of June 30, 2025 (RMB thousand) | Non-current Assets as of December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | China | 1,103,867 | 942,598 | 808,298 | 796,388 | | Hong Kong | 12,804 | — | 7,276 | — | | Total | 1,116,671 | 942,598 | 815,574 | 796,388 | Revenue and Expense Details This section details customer contract revenue types and recognition timing, along with the composition of other income (government grants, customer compensation) and finance costs (primarily interest expenses on borrowings) Disaggregation of Revenue from Contracts with Customers | Type of Goods or Services | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Equipment Recycling Revenue | 848,124 | 681,853 | | IT Technical Subscription Services | 76,633 | 77,015 | | Short-term Equipment Subscription | 23,464 | 23,830 | | Total | 948,221 | 782,698 | | Timing of Revenue Recognition | | | | At a point in time | 848,124 | 681,853 | | Over time | 100,097 | 100,845 | Other Income Details | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest income | 1,014 | 333 | | Government grants | 9,524 | 10,082 | | Customer compensation income | 2,387 | 3,051 | | Miscellaneous income | 125 | 108 | | Total | 13,050 | 13,574 | Finance Costs Details | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest expense on borrowings | 24,618 | 23,050 | | Interest expense on lease liabilities | 382 | 563 | | Total | 25,000 | 23,613 | Taxation and Earnings Per Share The Group's Chinese subsidiaries benefit from tax incentives, including a 15% preferential tax rate for high-tech enterprises, a low tax rate for small-profit enterprises, and an R&D expense super deduction policy, contributing to a significant improvement in EPS - Lingxiong (Shenzhen), as a high-tech enterprise, renewed its qualification in November 2023, enjoying a 15% preferential corporate income tax rate applicable for fiscal years 2023, 2024, and 2025[76][77] - Certain PRC subsidiaries qualified as "small-profit enterprises," subject to a 5% tax rate on profits not exceeding RMB 3 million (from January 1, 2023, to December 31, 2027)[77] - Enterprises engaged in R&D activities are entitled to claim 175% of the R&D expenses incurred during the year as deductible expenses[77] Earnings / (Loss) Per Share | Metric | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Basic Earnings / (Loss) Per Share | 0.02 | (0.13) | | Diluted Earnings / (Loss) Per Share | 0.02 | (0.13) | Receivables and Payables Trade and lease receivables significantly decreased due to shorter credit terms and enhanced risk management, while trade payables also decreased reflecting timely settlement, and other payables and accrued expenses increased due to higher accrued expenses Aging Analysis of Trade and Lease Receivables (Net of Allowance) | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 3 months | 107,643 | 232,594 | | Over 3 months but within 6 months | 8,269 | 7,861 | | Over 6 months but within 1 year | 9,736 | 10,626 | | Over 1 year | 6,308 | 4,542 | | Total | 131,956 | 255,623 | Aging Analysis of Trade Payables | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 6 months | 66,371 | 101,483 | | 6 to 12 months | 21,294 | 3,127 | | Over 1 year | 4,364 | 2,772 | | Total | 92,029 | 107,382 | - The credit period for trade payables ranges from 0 to 90 days[83]