Financial Performance - Revenue for the six months ended June 30, 2025, decreased by approximately RMB 93.1 million or 8.3% to approximately RMB 1,022.2 million compared to the same period in 2024[4] - Gross profit for the same period decreased by approximately RMB 22.9 million or 10.9% to approximately RMB 187.3 million, with a gross margin of approximately 18.3%, down 0.5 percentage points year-on-year[4] - The net loss attributable to equity shareholders for the six months ended June 30, 2025, was approximately RMB 70.4 million, compared to a net profit of approximately RMB 26.6 million for the same period in 2024[4] - Basic loss per share for the six months ended June 30, 2025, was approximately RMB 0.152, compared to basic earnings per share of approximately RMB 0.065 for the same period in 2024[4] - Total comprehensive loss for the six months ended June 30, 2025, was approximately RMB 69.3 million, compared to a total comprehensive income of approximately RMB 33.8 million for the same period in 2024[6] - Operating profit for the six months ended June 30, 2025, was approximately RMB 31.2 million, a decrease from RMB 67.5 million in the same period in 2024[5] - The total revenue for the six months ended June 30, 2025, was RMB 1,022,209 thousand, a decrease of 8.36% compared to RMB 1,115,320 thousand for the same period in 2024[18] - The company reported a total pre-tax profit of RMB 6 thousand for the six months ended June 30, 2025, a significant decrease from RMB 43,600 thousand in the same period of 2024[23] - The company recorded a loss attributable to equity shareholders of approximately RMB 70.4 million in H1 2025, compared to a profit of approximately RMB 26.6 million in H1 2024, influenced by decreased revenue and gross margin, increased interest expenses, and higher income tax[85] Revenue Breakdown - Revenue from Integrated Circuits and Digital Technology was RMB 94,677 thousand, up 21.5% from RMB 78,037 thousand in the previous year[18] - Revenue from New Energy and Services increased to RMB 73,697 thousand, a rise of 8.9% from RMB 68,032 thousand in the prior year[18] - Revenue from Wireless Communication decreased to RMB 853,835 thousand, down 12% from RMB 969,251 thousand in the same period last year[18] - The wireless communication segment reported a pre-tax loss of RMB (5,775) thousand for the six months ended June 30, 2025, compared to a profit of RMB 3,714 thousand in the same period of 2024[22] - In the first half of 2025, the integrated circuit and digital technology segment recorded revenue of approximately RMB 94.7 million, an increase of about RMB 16.7 million or 21.4% compared to approximately RMB 78.0 million in the first half of 2024[70] - The new energy and services segment achieved revenue of approximately RMB 73.7 million in the first half of 2025, up by about RMB 5.7 million or 8.4% from approximately RMB 68.0 million in the first half of 2024[71] - The wireless communication segment's revenue decreased by approximately RMB 115.4 million or 11.9% to approximately RMB 853.8 million in the first half of 2025, down from approximately RMB 969.3 million in the first half of 2024[72] Assets and Liabilities - Non-current assets as of June 30, 2025, amounted to approximately RMB 1,555.5 million, a decrease from RMB 1,737.9 million as of December 31, 2024[7] - Current assets increased to approximately RMB 3,680.9 million as of June 30, 2025, compared to RMB 2,928.3 million as of December 31, 2024[8] - Total equity attributable to equity shareholders as of June 30, 2025, was approximately RMB 1,493.2 million, down from RMB 1,561.9 million as of December 31, 2024[8] - The company’s total liabilities for the six months ended June 30, 2025, were RMB 31,148 thousand, reflecting an increase from RMB 34,870 thousand in the same period of 2024[28] - As of June 30, 2025, total liabilities amounted to RMB 2,958,627 thousand, while total assets reached RMB 5,236,419 thousand, resulting in a debt-to-asset ratio of 57%[96] - Total assets increased to approximately RMB 5,236.4 million as of June 30, 2025, from RMB 4,666.2 million as of December 31, 2024, with current assets rising to approximately RMB 3,680.9 million[91] - Trade payables increased significantly to RMB 1,036,011 thousand as of June 30, 2025, from RMB 633,966 thousand as of December 31, 2024[39] Expenses and Costs - The company incurred total depreciation and amortization expenses of RMB 32,320 thousand for the six months ended June 30, 2025, down from RMB 34,421 thousand for the same period in 2024[24] - Research and development expenses amounted to RMB 72,990 thousand for the six months ended June 30, 2025, slightly up from RMB 72,184 thousand in the same period of 2024[29] - Interest expenses for short-term bank loans increased to RMB 31,139 thousand for the six months ended June 30, 2025, compared to RMB 23,799 thousand for the same period in 2024, reflecting a rise of approximately 30.7%[28] - Selling and distribution expenses decreased by approximately RMB 7.5 million or 11.3% to approximately RMB 58.9 million in the first half of 2025, consistent with the decline in revenue from the wireless communication segment[79] - Administrative expenses decreased by approximately RMB 9.2 million or 18.3% to approximately RMB 41.0 million in the first half of 2025, mainly due to reductions in wage-related expenses and consulting fees[80] - Other operating income decreased by approximately RMB 14.1 million or 47.5% to approximately RMB 15.6 million in the first half of 2025, primarily due to a reduction in government subsidies and net gains from commodity futures contracts[78] Corporate Governance and Compliance - The company does not recommend the payment of an interim dividend for the six months ended June 30, 2025[4] - The company had no interim dividend proposed or declared for the six months ended June 30, 2025, and June 30, 2024[33] - The company has complied with all corporate governance code provisions as of June 30, 2025[123] - The audit committee reviewed the group's unaudited interim results for the six months ending June 30, 2025[122] - The board composition changed with the resignation of two non-executive directors on July 11, 2025[120] Strategic Focus and Future Outlook - The company is focused on expanding its operations in Integrated Circuits, New Energy, and Wireless Communication sectors, with a strategic emphasis on digital security products and services[11] - The company plans to enhance gross margins by increasing investment in new product development and applying new technologies, while also focusing on operational efficiency and cost control measures[76] - The company aims to leverage the diversification of its business and the synergy between its segments to create greater value for shareholders[111] - The company is focusing on risk management and market forecasting to navigate challenges posed by global trade tensions and geopolitical issues[108] Related Party Transactions - The company engaged in related party transactions, with sales of finished products amounting to RMB 56,129 thousand and purchases of raw materials totaling RMB 153,850 thousand for the six months ended June 30, 2025[40] - The first loan agreement with Nanjing Zhangyu Information Technology Co., Ltd. involves a principal amount of RMB 40 million at an interest rate of 4.9%[54] - The second loan agreement provides a principal of RMB 210 million, also at an interest rate of 4.9%, intended for potential acquisition costs related to Zhejiang Zhongguang New Energy Technology Co., Ltd.[54] - The total principal amount of the first and second loan agreements exceeds HKD 10 million, constituting a related party transaction under listing rules[55] - The repayment date for the first loan has been extended to April 27, 2025, and for the second loan to July 18, 2025[57] Employee and Shareholder Information - The company has adopted an employee equity incentive plan and a share reward plan to motivate and retain key employees[128] - Major shareholder 崔巍 holds 23.38% of the company's issued shares through 金永实业有限公司[116] - Wellahead Holdings Limited, owned by 张鍾, holds 3.41% of the company's issued shares[117] - As of June 30, 2025, the group employed 956 staff, an increase from 902 as of December 31, 2024[128]
亨鑫科技(01085) - 2025 - 中期业绩