Financial Statements Presents the Group's H1 2025 financial performance and position, showing revenue and profit declines, and changes in assets and liabilities Interim Condensed Consolidated Statement of Comprehensive Income In H1 2025, the Group's revenue decreased by 12.6% to RMB 82,398.5 million, gross profit fell 32.2% to RMB 11,920.5 million, and net profit attributable to equity holders significantly dropped 81.8% to RMB 360.0 million, with basic EPS of RMB 0.04 Interim Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB in thousands) | 2024 (RMB in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 82,398,455 | 94,322,292 | -12.6% | | Cost of sales | (70,477,919) | (76,749,697) | -8.2% | | Gross profit | 11,920,536 | 17,572,595 | -32.2% | | Operating profit | 6,202,257 | 10,750,177 | -42.3% | | Profit before income tax | 6,155,053 | 10,233,035 | -39.9% | | Profit for the period | 3,774,388 | 6,866,298 | -45.0% | | Attributable to equity holders of the Company | 359,961 | 1,978,021 | -81.8% | | Attributable to non-controlling interests | 3,414,427 | 4,888,277 | -30.2% | | Basic and diluted earnings per share (RMB) | 0.04 | 0.25 | -84.0% | Interim Condensed Consolidated Statement of Financial Position As of June 30, 2025, total assets were RMB 164,710.6 million, a 4.3% decrease from year-end 2024, with significant reduction in cash and cash equivalents, and negative net current assets Interim Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Indicator | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Assets | | | | | Total non-current assets | 88,071,013 | 90,358,033 | -2.5% | | Total current assets | 76,639,540 | 81,686,235 | -6.2% | | Total Assets | 164,710,553 | 172,044,268 | -4.3% | | Liabilities | | | | | Total current liabilities | 76,834,884 | 84,289,737 | -8.8% | | Total non-current liabilities | 9,632,992 | 9,273,058 | +3.9% | | Total Liabilities | 86,467,876 | 93,562,795 | -7.6% | | Equity | | | | | Capital and reserves attributable to equity holders of the Company | 57,509,439 | 57,314,818 | +0.3% | | Non-controlling interests | 20,733,238 | 21,166,655 | -2.0% | | Total Equity | 78,242,677 | 78,481,473 | -0.3% | | Net current assets | (195,344) | (2,603,502) | +92.5% | Notes to the Interim Condensed Consolidated Financial Information Provides detailed explanations on the Group's general information, accounting policies, going concern, segment data, revenue, operating profit items, income tax, dividends, earnings per share, and receivables/payables General Information The Group primarily manufactures and sells passenger vehicles in China, controlled by BAIC Group, with its ordinary shares listed on the HKEX - The Group primarily engages in the manufacturing and sales of passenger vehicles within China 8 - The Company's direct controlling company is Beijing Automotive Group Co., Ltd., beneficially owned by the Beijing Municipal People's Government State-owned Assets Supervision and Administration Commission 9 - The Company's ordinary shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on December 19, 2014 9 Basis of Preparation and Accounting Policies This condensed financial information is prepared in accordance with IAS 34 and should be read in conjunction with the annual financial statements for the year ended December 31, 2024 - This condensed financial information is prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and does not include all notes from the annual consolidated financial statements 11 - This condensed financial information should be read in conjunction with the Group's annual financial statements for the year ended December 31, 2024 11 Changes in Accounting Policies Accounting policies are consistent with the prior year, except for IFRS 21 (amended) "Lack of Exchangeability" effective January 1, 2025, which had no significant impact - The accounting policies adopted in preparing this condensed financial information are consistent with those applied in the Group's annual financial statements for the year ended December 31, 2024, except for new standards effective from January 1, 2025 12 - International Accounting Standard 21 (amended) "Lack of Exchangeability" was first applied in 2025 but had no significant impact on the Group's financial statements 13 Going Concern Despite current liabilities exceeding current assets by RMB 195.3 million as of June 30, 2025, management assesses sufficient financial resources, including operating cash inflows and unused bank facilities, support a going concern basis - As of June 30, 2025, the Group's current liabilities exceeded current assets by approximately RMB 195.3 million 14 - Management assesses that the Group has sufficient financial resources, including continuous net cash inflows from operating activities and approximately RMB 33,819 million in unused bank financing facilities, thus preparing financial statements on a going concern basis 1418 Segment Information The Group's business operations are reviewed as a single segment related to automotive manufacturing, sales, R&D, and services, with China contributing approximately 96.4% of revenue and 98.7% of non-current assets - The Group has optimized its business structure, with all operations related to the manufacturing and sales of automobiles and auto parts, R&D, and related technical services, thus reviewed as a single business segment 15 - For the six months ended June 30, 2025, revenue from external customers within mainland China accounted for approximately 96.4% of the Group's total revenue (H1 2024: 98.8%) 16 - As of June 30, 2025, approximately 98.7% of the Group's non-current assets, excluding financial instruments and deferred income tax assets, were located in mainland China (December 31, 2024: 98.4%) 16 Revenue Total revenue for H1 2025 was RMB 82,398,455 thousand, a decrease from RMB 94,322,292 thousand in H1 2024, primarily from customer contracts with a small portion from leasing Revenue Composition | Revenue Source | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Revenue from contracts with customers | 82,359,285 | 94,279,526 | | Lease income | 39,170 | 42,766 | | Total | 82,398,455 | 94,322,292 | Disaggregation of Revenue from Contracts with Customers Revenue from contracts with customers is disaggregated by type of goods/services (vehicle sales, other), geographic market (mainland China, other), and timing of recognition (point in time, over time) Disaggregation of Revenue from Contracts with Customers (H1 2025) | Disaggregation Category | Amount (RMB in thousands) | | :--- | :--- | | Type of goods or services | | | Sales of vehicles | 79,051,240 | | Others | 3,308,045 | | Geographical markets | | | Mainland China | 80,249,568 | | Other countries/regions | 2,109,717 | | Timing of revenue recognition | | | Goods transferred at a point in time | 81,646,023 | | Services transferred over time | 713,262 | Disaggregation of Revenue from Contracts with Customers (H1 2024) | Disaggregation Category | Amount (RMB in thousands) | | :--- | :--- | | Type of goods or services | | | Sales of vehicles | 90,715,703 | | Others | 3,563,823 | | Geographical markets | | | Mainland China | 93,239,724 | | Other countries/regions | 1,039,802 | | Timing of revenue recognition | | | Goods transferred at a point in time | 93,297,251 | | Services transferred over time | 982,275 | Items Included in Operating Profit Operating profit includes depreciation, employee benefits, warranty costs, and impairment provisions; H1 2025 saw a significant increase in non-financial asset impairment and a decrease in government grants Debit/Credit Items Included in Operating Profit | Item | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Depreciation and amortization | 4,281,433 | 4,427,650 | | Staff welfare expenses | 2,138,710 | 2,904,720 | | Warranty expenses | 1,199,577 | 1,112,811 | | Impairment provision for trade receivables | 16,348 | 11,509 | | Impairment provision for non-financial assets | 764,101 | 332,898 | | Foreign currency exchange losses/(gains) | 92,755 | 297,214 | | Losses/(gains) on forward foreign exchange contracts at fair value through profit or loss | (136,253) | 22,881 | | Loss on disposal of property, plant and equipment | 532 | 32,055 | | Government grants | (163,172) | (198,907) | Income Tax Some Group entities enjoy a 15% preferential income tax rate as high-tech enterprises, others are taxed at 25%; total income tax expense for H1 2025 was RMB 2,380,665 thousand, a decrease from the prior year - Some Group entities are recognized as high-tech enterprises, enjoying a preferential income tax rate of 15% 21 - Other entities calculate income tax at the statutory income tax rate of 25% in accordance with relevant Chinese enterprise income tax rules and regulations 21 Income Tax Expense Composition | Item | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Current income tax expense | 1,574,179 | 3,286,791 | | Deferred income tax expense | 806,486 | 79,946 | | Total | 2,380,665 | 3,366,737 | Dividends The Board of Directors did not propose an interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board of Directors did not propose an interim dividend for the six months ended June 30, 2025 (H1 2024: nil) 23 Earnings Per Share Basic earnings per share for H1 2025 was RMB 0.04, a significant decrease from RMB 0.25 in H1 2024, primarily due to reduced profit attributable to ordinary equity holders Earnings Per Share Calculation | Indicator | 2025 (RMB in thousands/per share) | 2024 (RMB in thousands/per share) | | :--- | :--- | :--- | | Profit attributable to ordinary equity holders of the Company | 359,961 | 1,978,021 | | Weighted average number of ordinary shares in issue (in thousands) | 8,015,338 | 8,015,338 | | Basic earnings per share (RMB) | 0.04 | 0.25 | - There were no potential dilutive ordinary shares for the six months ended June 30, 2025 and 2024, thus diluted earnings per share equal basic earnings per share 25 Trade and Bills Receivables As of June 30, 2025, total trade receivables were RMB 12,713,226 thousand with an impairment provision of RMB 1,505,439 thousand, and total bills receivables were RMB 6,234,494 thousand; most trade receivables are current to 1 year, but a high proportion is over 3 years old Trade Receivables and Impairment Provision as of June 30, 2025 | Item | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Gross trade receivables | 12,713,226 | 12,518,966 | | Less: Impairment provision | (1,505,439) | (1,457,105) | | Net | 11,207,787 | 11,061,861 | Aging Analysis of Trade Receivables as of June 30, 2025 | Aging | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Current to 1 year | 7,467,071 | 7,218,606 | | 1 to 2 years | 45,062 | 44,780 | | 2 to 3 years | 280,872 | 455,414 | | Over 3 years | 4,920,221 | 4,800,166 | | Total | 12,713,226 | 12,518,966 | - As of June 30, 2025, total bills receivables were RMB 6,234,494 thousand, of which RMB 4,754,910 thousand were pledged as collateral 27 Trade and Bills Payables As of June 30, 2025, total trade and bills payables were RMB 39,255,117 thousand, comprising RMB 28,587,980 thousand in trade payables and RMB 10,667,137 thousand in bills payables, with most trade payables being current to 1 year Trade and Bills Payables as of June 30, 2025 | Item | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Trade payables | 28,587,980 | 32,033,789 | | Bills payables | 10,667,137 | 7,274,630 | | Total | 39,255,117 | 39,308,419 | Aging Analysis of Trade Payables as of June 30, 2025 | Aging | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Current to 1 year | 28,410,381 | 31,954,999 | | 1 to 2 years | 126,559 | 41,582 | | 2 to 3 years | 21,454 | 17,721 | | Over 3 years | 29,586 | 19,487 | | Total | 28,587,980 | 32,033,789 | Business Overview Details the Group's core business activities, including passenger vehicle brands, component production, auto finance, and international operations, emphasizing new energy and intelligent transformation Main Business Activities The Group's main business encompasses R&D, manufacturing, sales, and after-sales services for passenger vehicles, core component production, auto finance, and international operations, accelerating transformation towards new energy and intelligence - The Group's main business covers passenger vehicle R&D, manufacturing, sales and after-sales services, core passenger vehicle component production, auto finance, international business, and other related activities 29 - The Group is accelerating its transformation towards new energy and intelligence, with passenger vehicle products covering both fuel and new energy models 30 Passenger Vehicles The Group operates passenger vehicle businesses through four brands: Beijing, Beijing Benz, Beijing Hyundai, and Fujian Benz, covering both fuel and new energy vehicles, accelerating transformation towards new energy and intelligence - The Group operates passenger vehicle businesses through four brands: Beijing Brand, Beijing Benz, Beijing Hyundai, and Fujian Benz 30 - Product types cover both fuel and new energy vehicles, accelerating transformation and upgrading towards new energy and intelligence 30 Beijing Brand The Beijing Brand, an independent brand, offers fuel and new energy sedans, SUVs, and off-road vehicles, focusing on off-road electrification with innovative models like BJ30 and BJ40 - The Beijing Brand is an independent brand, with products covering fuel and new energy models of sedans, SUVs, and off-road vehicles 31 - It focuses on the off-road/general off-road segment, achieving breakthrough innovations in off-road electrification through deep integration of off-road genes and new energy technologies 31 - Products include BJ30 Magic Core (leader in 100,000-level hybrid square SUVs), BJ40 Extended Range (camping vehicle), BJ40 Fuel Version (professional off-road fuel-efficient king), and BJ60 (luxury off-road SUV) 31 - Future product lineup will include over ten models across fuel, pure electric, and hybrid categories 32 Beijing Benz Beijing Benz, a 51.0% owned subsidiary and joint venture with Mercedes-Benz Group, is a global leader in producing front-wheel drive, rear-wheel drive, and electric vehicle platforms, including engine and power battery factories - Beijing Benz is a 51.0% owned subsidiary of the Company, a joint venture with Mercedes-Benz Group 33 - It is the only joint venture globally within the Mercedes-Benz Group that simultaneously possesses three vehicle platforms (front-wheel drive, rear-wheel drive, electric vehicles) and engine and power battery factories 33 - It has put into production fuel vehicles such as the long-wheelbase E-Class sedan and long-wheelbase GLC SUV, and launched multiple pure electric and hybrid models including EQE, EQE SUV, E350 e L, and GLC 350 e L 33 Beijing Hyundai Beijing Hyundai, a 50.0% owned joint venture with Hyundai Motor Company, boasts industry-leading quality and manufacturing, producing and selling compact, mid-size sedans, and SUVs - Beijing Hyundai is a 50.0% owned joint venture of the Company, with Hyundai Motor Company 34 - It possesses an industry-leading quality operation system and manufacturing plants, producing and selling compact, mid-size sedans, and SUVs 34 - Key models include the 7th generation Elantra, Festa N-line, 11th generation Sonata, 5th generation Tucson L, Mufasa, 5th generation Santa Fe, and Custo 34 Fujian Benz Fujian Benz, a 35.0% owned joint venture, has produced and sold Mercedes-Benz multi-purpose passenger vehicles since 2010, maintaining a leading position in the joint venture luxury commercial vehicle segment - Fujian Benz is a 35.0% owned joint venture of the Company, with Fujian Motor Industry Group Co., Ltd. and Mercedes-Benz Light Commercial Vehicles Hong Kong Limited 35 - It has produced and sold Mercedes-Benz brand multi-purpose passenger vehicles since 2010, with main products being the V-Class and new Vito 35 - It maintains a leading advantage in the joint venture luxury commercial vehicle segment 35 Core Passenger Vehicle Components The Group produces core components like engines, powertrains, and power batteries through its production bases, utilizing a combination of cooperative and independent R&D for mass production of various fuel and hybrid components - The Group produces core passenger vehicle components such as engines, powertrains, and power batteries through the production bases of Beijing Brand, Beijing Benz, and Beijing Hyundai 36 - It adopts a combination of cooperative development and independent R&D to achieve mass production of multiple fuel and hybrid engines, range extenders, and transmissions 36 - Beijing Benz has built two modern engine production bases and the first power battery factory outside Germany 36 - Beijing Hyundai primarily produces Gamma II series 1.5/1.6 displacement engines 36 Auto Finance The Group conducts auto finance and after-market businesses for Beijing, Mercedes-Benz, and Hyundai brands through associates and joint ventures, collaborating with various financial institutions to offer diverse financial products - The Group conducts auto finance and after-market related businesses for Beijing Brand, Mercedes-Benz Brand, and Hyundai Brand through its associates and joint ventures 37 - It collaborates with multiple auto finance companies, commercial banks, and financial leasing companies to provide financial products covering all in-market models and diverse customer needs 37 International Business The Group's international market operations are managed by Beijing Automotive International Development Co., Ltd., driving rapid global expansion through overseas sales, KD technical cooperation, and vehicle distribution, including a production base in South Africa - The Group's international market marketing business is managed by its wholly-owned subsidiary, Beijing Automotive International Development Co., Ltd 38 - It promotes rapid development of international business through overseas sales companies, KD technical cooperation, and complete vehicle distribution 38 - Its joint venture, BAIC South Africa Automotive Co., Ltd., is responsible for the production operations and related marketing in the South African production base 38 Operational Review and Outlook Reviews H1 2025 industry trends and Group operations, highlighting new energy development, marketing, user-centric strategies, overseas expansion, and outlines H2 2025 outlook H1 2025 Industry Development In H1 2025, the automotive industry maintained positive momentum with rapid growth in new energy vehicles, resilient exports, and increased market share for Chinese brands, supported by national policies - In H1 2025, the automotive industry continued its positive trend, with rapid growth in new energy vehicles, sustained resilience in automotive exports, and an increased market share for Chinese brand passenger vehicles 40 - In H1 2025, passenger vehicle sales reached 13.531 million units, a 13% year-on-year increase, with 2.581 million units exported 40 - National policies from the National Development and Reform Commission and the Ministry of Finance were released, continuously boosting end-market demand for automobiles and promoting industry development 40 H1 2025 Group Operations In H1 2025, guided by "survival, reform, development," the Group focused on domestic and international markets and star product portfolios, achieving 421 thousand wholesale and 427 thousand retail vehicle sales, improving operational efficiency and quality - In H1 2025, the Group was guided by the policy of "survival, reform, and development," focusing on both "domestic and international" strategic markets 41 - During the reporting period, Beijing Brand, Beijing Benz, Beijing Hyundai, and Fujian Benz collectively achieved 421 thousand wholesale vehicle sales and 427 thousand retail vehicle sales 41 New Energy Development Direction The Group is committed to new energy development, continuously improving its new energy product matrix and achieving breakthroughs in its new energy strategy - The Group firmly adheres to the new energy development direction, continuously improving its new energy product matrix and promoting in-depth breakthroughs in its new energy strategy 42 - Beijing Brand created the BJ30 and BJ40 extended-range twin products, integrating off-road and new energy technologies 42 - Beijing Benz unveiled its first model based on the Mercedes-Benz Modular Architecture (MMA), the new pure electric long-wheelbase CLA 42 - Beijing Hyundai's first pure electric SUV was publicly unveiled, and Fujian Benz initiated the construction of the Mercedes-Benz New Energy Commercial Vehicle Platform (VAN.EA) in China 42 New Marketing Channels The Group fully embraces new media, building a new media communication matrix and quality content ecosystem to integrate R&D, production, supply, sales, and service - The Group fully embraces new media, building a new media communication matrix and a quality content ecosystem to facilitate the integration of R&D, production, supply, sales, and service 44 - Beijing Brand's "Western Frontier Off-road" plan integrates western characteristics with off-road advantages, promoting both brand and market enhancement 44 - Beijing Benz created a "hit IP" through its "Anchors Take You to Explore BBAC" project to boost marketing 44 - Beijing Hyundai expanded brand awareness and drove sales growth through live streaming and co-creation with car owners 44 User-Centric Enterprise Building Beijing Auto adheres to a user-centric development philosophy, adapting to market changes and user needs, evolving brand value, product layout, and user experience - Beijing Auto adheres to its original intention of "user-centric" development, actively adapting to market changes and user needs 45 - Beijing Brand achieved a full-dimensional evolution from brand value and product layout to user experience 45 - Beijing Benz specifically created the new pure electric long-wheelbase CLA for the Chinese market, expanding choices for pure electric luxury travel 45 - In the future, it will continuously improve user satisfaction through multi-dimensional strategies including perfecting the product system, upgrading brand services, and optimizing the ecosystem experience 45 Overseas Business Expansion The Group continues to deepen overseas business expansion, comprehensively enhancing its systematic capabilities, accelerating product development and certification, and refining channel construction - The Group continues to promote in-depth breakthroughs in overseas business, comprehensively enhancing its systematic capabilities for international operations 46 - Beijing Brand accelerates overseas product development and certification, promoting multiple popular products to overseas markets and refining channel construction 46 - Beijing Hyundai actively expands overseas markets, enriching export models and regions, striving to improve operational quality through a "domestic sales + export" dual-driven approach 46 Sales Network and Channels Each brand maintains independent sales channels, focusing on enhancing product service systems and upgrading sales networks through channel innovation, digital marketing, and optimized layouts - Each brand has independent sales channels, committed to improving the product service system and providing timely, efficient, accurate, and high-quality service guarantees 47 - Beijing Brand drives sales network upgrades through channel innovation and user operations, adding multiple stores and building new channel partnerships 47 - Beijing Benz continuously promotes its network upgrade plan, enhancing the image, functions, processes, and service teams of offline touchpoints, and focusing on digital marketing 47 - Beijing Hyundai actively promotes network layout optimization, stabilizes channel operations, and enhances brand awareness and customer value conversion through hot-spot marketing and new media matrix 48 Production Facilities and Quality Management The Group operates specialized production facilities with flexible production lines, equipped with advanced digital and intelligent quality management systems to ensure high automation and product quality - The Group possesses specialized production facilities for manufacturing and assembling products, all equipped with flexible production lines capable of adapting production plans and quickly responding to market demand changes 49 - Beijing Brand's Zhuzhou and Guangzhou factories adopt advanced digital and intelligent production quality management systems, continuously improving product quality 49 - Beijing Benz has built the "most comprehensive and strongest production base globally" for Mercedes-Benz, characterized by "digitalization, flexibility, efficiency, and sustainability," and was listed among Beijing's advanced intelligent factories in 2025 49 - Beijing Hyundai adheres to a "green, quality, intelligent, and efficient" production philosophy, relying on intelligent production equipment and an international management system to ensure high automation rates and product quality 49 Supply Chain Synergy In H1 2025, the Group deepened industrial-financial synergy and cooperation, refining the entire R&D, production, supply, and sales chain to strengthen core competitiveness - In H1 2025, the Group continued to deepen industrial-financial synergy and industrial cooperation, refining the entire R&D, production, supply, and sales chain to strengthen core competitiveness 50 - Moving forward, guided by the overall operational strategy, it will unleash internal and external synergistic potential, link all aspects of the industrial chain, and continuously solidify its competitive foundation in the industry 50 Employee Information As of June 30, 2025, the Group's total number of employees was 31,885, a slight increase from 31,705 as of December 31, 2024 - As of June 30, 2025, the Group's total number of employees was 31,885 (December 31, 2024: 31,705) 51 H2 2025 Outlook H2 2025 outlook anticipates increased auto consumption driven by national policies and new product launches, despite complex external environment and intense competition; the Group will focus on marketing, cost control, and quality to expand market share - Looking ahead to H2, the orderly implementation of "two new" policies and continuous enrichment of new product offerings by enterprises are expected to boost automotive consumption, yet the external environment remains complex, severe, and uncertain, with intense industry competition 52 - In H2 2025, the Group will focus on "marketing empowerment, cost control, and quality improvement" as its operational core, aiming to expand market share and enhance investment efficiency 52 - Each brand will specifically cultivate target markets, consolidate its leading position in the high-end luxury car market, improve operational quality, and deepen practices of quality enhancement and efficiency improvement 52 Management Discussion and Analysis Analyzes H1 2025 financial results, including revenue, net profit, gross profit, liquidity, investments, R&D, foreign exchange, asset pledges, and contingent liabilities Revenue and Net Profit Attributable to Equity Holders In H1 2025, Group revenue decreased by 12.6% to RMB 82,398.5 million due to price competition and lower sales, while net profit attributable to equity holders significantly dropped 81.8% to RMB 360.0 million, resulting in basic EPS of RMB 0.04 - The Group's revenue for H1 2025 was RMB 82,398.5 million, a 12.6% decrease from H1 2024, primarily due to price competition and changes in sales volume 53 - The Group recorded a net profit attributable to equity holders of the Company of RMB 360.0 million in H1 2025, an 81.8% decrease from H1 2024 53 - Basic earnings per share for H1 2025 was RMB 0.04 53 Gross Profit In H1 2025, the Group's gross profit decreased by 32.2% to RMB 11,920.5 million, primarily due to intense price competition and lower sales volume - The Group's gross profit for H1 2025 was RMB 11,920.5 million, a 32.2% decrease from H1 2024, primarily due to price competition and changes in sales volume 54 Liquidity and Financial Resources H1 2025 net cash inflow from operating activities decreased by 83.0% to RMB 1,961.0 million; as of June 30, 2025, the Group held RMB 25,540.8 million in cash and equivalents and RMB 33,819 million in unused bank facilities, with a liability-to-asset ratio of 52.5% and a net debt-to-equity ratio of negative 28.2%, up 18.6 percentage points due to reduced cash - The Group's net cash generated from operating activities in H1 2025 was RMB 1,961.0 million, an 83.0% decrease from H1 2024, primarily due to reduced net cash inflow from operating activities 55 - As of June 30, 2025, the Group held cash and cash equivalents of RMB 25,540.8 million and had unused short-term and long-term bank financing facilities of approximately RMB 33,819 million 55 - As of June 30, 2025, the Group's liability-to-asset ratio was 52.5%, a 1.9 percentage point decrease from year-end 2024 56 - As of June 30, 2025, the Group's net debt-to-equity ratio was negative 28.2%, an 18.6 percentage point increase from year-end 2024, primarily due to a significant decrease in cash and cash equivalents 56 Significant Investments and R&D Expenses H1 2025 capital expenditure increased to RMB 2,464.1 million, while R&D expenses decreased to RMB 1,372.3 million, primarily for product development activities - The Group's total capital expenditure in H1 2025 was RMB 2,464.1 million, compared to RMB 2,214.1 million in H1 2024 57 - The Group's total R&D expenses in H1 2025 were RMB 1,372.3 million, compared to RMB 1,802.3 million in H1 2024 57 - R&D expenses were primarily for the Group's product development activities, with amounts meeting capitalization criteria being capitalized 57 Significant Acquisitions and Disposals The Group had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures in H1 2025 - The Group had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures in H1 2025 58 Foreign Currency Exchange Gains/Losses In H1 2025, the Group recorded foreign currency exchange gains of RMB 43.5 million, a turnaround from a loss of RMB 320.1 million in H1 2024, attributed to effective hedging with forward contracts and RMB appreciation against the Euro - The Group generated foreign currency exchange gains of RMB 43.5 million in H1 2025, compared to exchange losses of RMB 320.1 million in H1 2024 59 - This was primarily due to effective hedging of exchange rate risks through forward foreign exchange contracts and increased exchange gains from Euro-denominated payables due to changes in the RMB to Euro exchange rate 59 - The Group employs a mature foreign exchange management strategy, continuously and orderly hedging exchange rate risks, primarily using forward foreign exchange contracts as hedging instruments 59 Pledge of Assets As of June 30, 2025, the Group had pledged bills receivables totaling RMB 4,754.9 million - As of June 30, 2025, the Group had pledged bills receivables totaling RMB 4,754.9 million 60 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 61 Significant Litigation and Arbitration As of June 30, 2025, the Company had no significant litigation or arbitration matters, nor were directors aware of any material adverse litigation or claims - As of June 30, 2025, the Company had no significant litigation or arbitration matters 62 - The directors were also unaware of any pending significant litigation or claims that would have a material adverse effect on the Company 62 Events After Reporting Period No events with significant impact on the Group occurred after the reporting period - No events with significant impact on the Group occurred after the reporting period 63 Interim Dividends The Board of Directors did not propose an interim dividend for H1 2025 - The Board of Directors did not propose an interim dividend for H1 2025 64 Corporate Governance and Other Information Covers compliance with corporate governance codes, changes in board and supervisory committees, audit committee review, and publication details Purchase, Sale or Redemption of Listed Securities During the reporting period, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and no treasury shares were held as of June 30, 2025 - Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the reporting period 66 - As of June 30, 2025, the Company held no treasury shares 67 Compliance with Corporate Governance Code The Group is committed to high corporate governance standards, adopting the Corporate Governance Code in Appendix C1 of the Listing Rules, and has consistently complied with its provisions during the reporting period - The Group is committed to establishing and maintaining high standards of corporate governance to protect shareholders' interests and enhance corporate value and responsibility 68 - The Company has adopted the Corporate Governance Code set out in Appendix C1 of the Listing Rules and established a modern corporate governance structure with effective checks and balances and independent operations among the general meeting, Board of Directors, Supervisory Committee, and senior management 68 - The Company has consistently complied with the provisions of the Corporate Governance Code during the reporting period 69 Compliance with Standard Securities Trading Code The Company adopted the Standard Securities Trading Code for Directors of Listed Issuers (Appendix C3 of Listing Rules) for all directors, supervisors, and senior management, who confirmed strict compliance during the reporting period - The Company has adopted the "Standard Securities Trading Code for Directors of Listed Issuers" set out in Appendix C3 of the Listing Rules as the code of conduct for all directors, supervisors, and senior management when dealing in the Company's securities 70 - Following the Company's inquiry, all directors, supervisors, and senior management confirmed strict compliance with the Standard Code during the reporting period 71 Changes in Board and Committees On March 13, 2025, Mr. Chen Wei resigned as Chairman, and Mr. Wang Hao was appointed Executive Director, Chairman, and head of the Strategy and Nomination Committees; no other changes occurred in the Board or committees during the period - On March 13, 2025, Mr. Chen Wei ceased to be Chairman, Non-executive Director, Chairman of the Strategy Committee, and Chairman of the Nomination Committee due to work changes 72 - On the same day, Mr. Wang Hao was appointed as a Non-executive Director and, at the Board meeting, was appointed as an Executive Director, Chairman, Chairman of the Strategy Committee, and Chairman of the Nomination Committee 72 - Except for the aforementioned disclosures, there were no other changes in the composition of the Board, Strategy Committee, Audit Committee, Nomination Committee, or Remuneration Committee during the period from January 1, 2025, to the date of this announcement 73 Changes in Supervisory Committee Ms. Zhu Yan resigned as non-employee representative supervisor on January 16, 2025, and Mr. Xia Peng was appointed to the role on March 13, 2025 - On January 16, 2025, Ms. Zhu Yan ceased to be a non-employee representative supervisor due to work adjustments 74 - On March 13, 2025, Mr. Xia Peng was appointed as a non-employee representative supervisor 74 Audit Committee The Company's Audit Committee, comprising Mr. Xue Lipin (Chairman), Mr. Hu Hanjun, and Mr. Tang Jun (two independent non-executive directors), has reviewed the Group's unaudited interim financial statements and results for H1 2025 - The Company has established an Audit Committee and formulated its written terms of reference 75 - The Audit Committee members are Mr. Xue Lipin (Chairman), Mr. Hu Hanjun, and Mr. Tang Jun, two of whom are independent non-executive directors 75 - The Audit Committee has reviewed the Group's unaudited interim financial statements, H1 2025 interim results, and H1 2025 interim report 75 Publication of Report This interim results announcement will be published on the HKEX and Company websites, with the full 2025 interim report to follow, containing all information required by the Listing Rules - This interim results announcement will be published on the website of The Stock Exchange of Hong Kong Limited (www.hkex.com.hk) and the Company's website (www.baicmotor.com) 76 - The Company will timely publish the 2025 interim report, containing all information required by the Listing Rules, on the Company's and HKEX websites 76
北京汽车(01958) - 2025 - 中期业绩