奥威控股(01370) - 2025 - 中期业绩

Financial Summary Financial Summary Overview Aowei Holdings Limited reported a 15.6% revenue decline and an 89.7% drop in gross profit for the six months ended June 30, 2025, resulting in a wider net loss Financial Highlights | Indicator | 6 Months Ended June 30, 2025 (RMB Million) | 6 Months Ended June 30, 2024 (RMB Million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 273.1 | 323.7 | -15.6% | | Gross Profit | 4.8 | 46.7 | -89.7% | | Gross Profit Margin | 1.8% | 14.4% | -12.6 p.p. | | Loss Attributable to Equity Holders | (75.6) | (50.6) | +49.4% (Loss Widened) | | Basic Loss Per Share | (0.05) | (0.03) | +66.7% (Loss Widened) | - The Board of Directors does not recommend the payment of any interim dividend for the reporting period[3] Condensed Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income The Group's revenue decreased by 15.6% to RMB 273.1 million, leading to a significant 89.7% fall in gross profit and an expanded period loss of RMB 75.6 million Statement of Profit or Loss Highlights (RMB'000) | Indicator | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 273,140 | 323,731 | -15.6% | | Cost of sales | (268,296) | (277,059) | -3.2% | | Gross profit | 4,844 | 46,672 | -89.7% | | Other income, gains and losses, net | 5,861 | 2,365 | +147.8% | | Distribution expenses | (554) | (821) | -32.5% | | Administrative expenses | (51,827) | (59,684) | -13.2% | | Net impairment losses under ECL model | (8,542) | (10,128) | -15.6% | | Finance costs | (27,941) | (30,720) | -9.1% | | Loss before tax | (78,159) | (52,316) | +49.4% (Loss Widened) | | Income tax credit | 2,535 | 1,729 | +46.6% | | Loss for the period | (75,624) | (50,587) | +49.5% (Loss Widened) | | Basic loss per share | (0.05) | (0.03) | +66.7% (Loss Widened) | Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total non-current assets decreased while current liabilities increased, resulting in a larger net current liability position and reduced total equity Statement of Financial Position Highlights (RMB'000) | Indicator | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Assets | | | | | Total non-current assets | 1,299,408 | 1,492,019 | -12.9% | | Total current assets | 493,055 | 365,779 | +34.8% | | Liabilities | | | | | Total current liabilities | 1,049,492 | 900,646 | +16.5% | | Total non-current liabilities | 131,021 | 269,538 | -51.4% | | Equity | | | | | Net assets/Total equity | 611,950 | 687,614 | -11.0% | | Net current liabilities | (556,437) | (534,867) | +4.0% (Deficit Widened) | - As of June 30, 2025, pledged bank deposits increased significantly to RMB 181.1 million from RMB 20.0 million at the end of 2024[5] - Bank borrowings classified as current liabilities rose to RMB 773.5 million from RMB 633.0 million at the end of 2024[5] Notes to the Condensed Consolidated Financial Statements 1. General Information Aowei Holdings Limited primarily engages in iron ore operations and the production of green building materials from tailings in China, with its ultimate controlling parties being Mr. Li Yanjun and Mr. Li Ziwei - The Group's principal activities include iron ore exploration, mining, processing, and sales, as well as the production and sale of green building sand and stone aggregates from tailings[7] - The Group's consolidated financial statements are presented in Renminbi (RMB), and its main operations are located in China[8] - The Group's ultimate controlling parties are Mr. Li Yanjun and Mr. Li Ziwei[8] 2. Basis of Preparation The financial statements were prepared on a going concern basis, despite material uncertainties arising from net losses, net current liabilities, and significant short-term borrowings exceeding cash reserves - The Group incurred a loss of approximately RMB 75,624,000, had net current liabilities of approximately RMB 556,437,000, and borrowings due within one year of approximately RMB 773,500,000 against cash and cash equivalents of only RMB 13,923,000, indicating a material uncertainty related to going concern[10] - To address these uncertainties, the Board plans to negotiate loan renewals, pledge non-current assets if necessary, and has secured a commitment of sufficient financial support from the ultimate controlling parties[11][14] 3. Principal Accounting Policies The financial statements are prepared under the historical cost convention, with the first-time application of amendments to IAS 21 having no material impact on the Group's financial position - The unaudited condensed consolidated financial statements have been prepared on the historical cost basis, except for certain financial instruments measured at fair value[12] - The first-time application of amendments to IAS 21 "Lack of Exchangeability" during the interim period had no material impact on the Group's financial position and performance[13] 4. Revenue from Contracts with Customers Total revenue from customer contracts decreased by 15.6% to RMB 273.1 million, driven by a 22.1% drop in iron concentrate sales, partially offset by a 100.2% surge in sand and stone aggregate sales Disaggregation of Revenue from Contracts with Customers (RMB'000) | Type of Goods | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Iron concentrate | 239,038 | 306,694 | -22.1% | | Sand and stone aggregates | 34,102 | 17,037 | +100.2% | | Total | 273,140 | 323,731 | -15.6% | | Geographical market: PRC | 273,140 | 323,731 | -15.6% | | Timing of revenue recognition: At a point in time | 273,140 | 323,731 | -15.6% | 5. Operating Segments The Group operates under a single reportable segment, the mining segment, which encompasses all its iron ore and green building material activities - The Group's sole reportable and operating segment is the mining segment, which includes iron ore operations and the production and sale of green building sand and stone aggregates[17] - All of the Group's revenue for the six months ended June 30, 2025 and 2024 was derived from the mining segment[17] 6. Other Income, Gains and Losses, Net Net other income increased significantly to RMB 5.9 million, primarily driven by new dividend income from equity instruments and higher government grants Other Income, Gains and Losses, Net (RMB'000) | Item | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Loss on disposal of property, plant and equipment | (8) | – | N/A | | Loss on write-off of property, plant and equipment | (31) | (434) | -92.9% | | Government grants | 640 | 480 | +33.3% | | Interest income | 2,260 | 2,319 | -2.6% | | Dividend from equity instruments at FVTOCI | 3,000 | – | N/A | | Total | 5,861 | 2,365 | +147.8% | 7. Net Impairment Losses under Expected Credit Loss (ECL) Model Net impairment losses under the ECL model decreased to RMB 8.5 million, mainly due to a larger reversal of impairment losses on trade receivables Net Impairment Losses under ECL Model (RMB'000) | Item | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Reversal of impairment loss on trade receivables | 4,982 | 1,604 | +210.6% | | Reversal of impairment loss on other receivables | 934 | 50 | +1768.0% | | Impairment loss on trade receivables | (14,458) | (11,558) | +25.1% (Loss Increased) | | Impairment loss on other receivables | – | (224) | -100.0% | | Net | (8,542) | (10,128) | -15.6% | 8. Finance Costs Finance costs decreased by 9.1% to RMB 27.9 million, primarily attributable to lower interest expenses on bank borrowings Finance Costs (RMB'000) | Item | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Interest expense on bank borrowings | 26,557 | 29,785 | -10.8% | | Interest expense on discounted bills | 457 | 29 | +1475.9% | | Interest expense on lease liabilities | – | 23 | -100.0% | | Reversal of interest expense on provision for reclamation | 927 | 883 | +4.9% | | Total | 27,941 | 30,720 | -9.1% | 9. Income Tax Credit The Group's income tax credit increased to RMB 2.5 million, consisting of an overprovision of PRC Enterprise Income Tax from prior years and deferred tax for the period Income Tax Credit (RMB'000) | Item | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Current tax: Overprovision in prior years | 2,395 | 21,043 | -88.6% | | Deferred tax: For the period | 140 | (19,314) | N/A | | Total | 2,535 | 1,729 | +46.6% | 10. Loss for the Period The Group's loss for the period of RMB 75.6 million was arrived at after charging key expenses including staff costs, transportation fees, and depreciation and amortization Items Charged in Loss for the Period (RMB'000) | Item | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total staff costs | 33,550 | 36,074 | -7.0% | | Transportation service fees (net of capitalisation in inventories) | 554 | 821 | -32.5% | | Total depreciation and amortisation (net of capitalisation in inventories) | 8,142 | 14,070 | -42.2% | | Cost of inventories recognised as expense | 266,488 | 274,613 | -3.0% | 11. Dividends The Board of Directors has resolved not to declare any interim dividend for the six months ended June 30, 2025, consistent with the prior year period - No dividend was paid, declared or proposed by the Company during the interim period[22] 12. Loss Per Share Basic loss per share attributable to owners of the Company widened to RMB 0.05 from RMB 0.03 in the prior year period, with no dilutive potential ordinary shares outstanding Loss Per Share Data | Indicator | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :--- | :--- | :--- | | Loss for the purpose of calculating basic loss per share (RMB'000) | (75,624) | (50,587) | | Basic loss per share (RMB) | (0.05) | (0.03) | | Diluted loss per share | N/A | N/A | 13. Property, Plant and Equipment During the period, the Group acquired property, plant and equipment of RMB 26.9 million and recorded depreciation of RMB 48.4 million, while title certificates for certain assets remain pending - The Group acquired property, plant and equipment (including right-of-use assets) costing approximately RMB 26,872,000, a significant increase from the prior period (RMB 328,000)[27] - As of June 30, 2025, the Group had not yet obtained title certificates for leased land with a carrying amount of approximately RMB 44,843,000 and buildings and plants of approximately RMB 221,423,000[26][29] - During the reporting period, depreciation on property, plant and equipment was approximately RMB 48,393,000, with a write-off loss of RMB 31,000 and a disposal loss of RMB 8,000[27][28] 14. Construction in Progress The Group's additions to construction in progress amounted to approximately RMB 3.0 million, primarily for green mine construction and plant and machinery installation - The Group's additions to construction in progress of approximately RMB 3,001,000 were mainly for green mine construction costs, processing plants, and machinery and equipment under construction and installation[30] 15. Trade and Other Receivables Net trade receivables decreased by 14.6% to RMB 92.9 million as of June 30, 2025, while the aging analysis shows a significant portion remains over one year outstanding Trade and Other Receivables (RMB'000) | Item | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Gross trade receivables, net | 92,939 | 108,835 | -14.6% | | Bills receivable, net | 5,100 | 1,300 | +292.3% | | Gross other receivables, net | 89,916 | 91,696 | -1.9% | | Trade and other receivables, net, classified as current assets | 176,089 | 179,007 | -1.6% | Aging Analysis of Trade Receivables (RMB'000) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 0 to 30 days | 5,560 | 7,008 | | 31 to 90 days | 15,629 | 14,489 | | 91 to 180 days | 3,814 | 13,039 | | 181 to 365 days | 23,395 | 13,882 | | Over 1 year | 44,541 | 60,417 | - Prepayments and deposits mainly consist of prepayments to transportation service providers, with Laiyuan County Ruitong Transportation Co, Ltd being the largest[33][34] 16. Trade and Other Payables Total trade and other payables increased by 3.9% to RMB 213.3 million as of June 30, 2025, mainly driven by an increase in amounts due to a related party Trade and Other Payables (RMB'000) | Item | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Trade payables | 89,050 | 86,911 | +2.5% | | Bills payable | 40,000 | 40,000 | 0.0% | | Other tax payables | 11,879 | 11,219 | +5.9% | | Payables for construction in progress, purchase of equipment and others | 38,480 | 39,824 | -3.4% | | Interest payable | 1,384 | 1,816 | -23.8% | | Amount due to a related party | 4,000 | – | N/A | | Other payables | 28,459 | 25,538 | +11.4% | | Total | 213,252 | 205,308 | +3.9% | Aging Analysis of Trade Payables (RMB'000) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 0 to 30 days | 29,709 | 33,419 | | 31 to 90 days | 11,882 | 8,326 | | 91 to 180 days | 7,437 | 8,327 | | 181 to 365 days | 7,987 | 4,721 | | Over 1 year | 32,035 | 32,118 | - The amount due to a related party (Hebei Aowei Industrial Group Co, Ltd) is unsecured, interest-free, and repayable on demand[36] Management Discussion and Analysis Iron Ore Business The iron ore market experienced a downward trend in the first half of 2025, leading to a 22.1% decline in the Group's iron ore business revenue amid lower selling prices and a mining suspension Market Review The iron ore market in the first half of 2025 started strong but trended downwards due to supply recovery and policy impacts, with prices fluctuating between a high of US$109.50 and a low of US$92.75 per ton - In the first half of 2025, the iron ore market was volatile, with the Platts 62% iron ore index fluctuating from a high of US$109.50/ton to a low of US$92.75/ton[37] Business Review The Group's iron ore business revenue fell 22.1% due to the suspension of mining at Jiheng Mining and a 16.1% drop in the average selling price of iron concentrate, despite cost reduction efforts - The Group's loss during the period was mainly attributable to the suspension of mining at Jiheng Mining's open-pit mine and a decline in the selling price of iron concentrate, which lowered the gross profit margin[38] - The average unit cash operating cost of iron concentrate at Jingyuancheng Mining was approximately RMB 663.43/ton, a year-on-year decrease of about 1.1%[38] Iron Concentrate Production, Sales, and Price Details | Indicator | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Iron concentrate production ('000 tonnes) | 327.50 | 337.53 | -3.0% | | Iron concentrate sales volume ('000 tonnes) | 332.75 | 358.26 | -7.1% | | Average selling price of iron concentrate (RMB/tonne) | 718.37 | 856.06 | -16.1% | | Iron ore business revenue (RMB million) | 239.0 | 306.7 | -22.1% | Operating Mines The Wang'ergou and Shuanmazhuang mines, with a combined annual capacity of 14 million tonnes, saw reduced ore extraction and production volumes, though unit cash operating costs slightly decreased - The Wang'ergou Mine and Shuanmazhuang Mine have a combined annual mining capacity of 14 million tonnes per year[41] Wang'ergou and Shuanmazhuang Mines Production Details | Item | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Ore mined ('000 tonnes) | 5,677.22 | 6,054.37 | -6.2% | | Waste rock stripped ('000 tonnes) | 2,839.92 | 3,457.22 | -17.9% | | Raw ore processed ('000 tonnes) | 5,602.43 | 6,238.23 | -10.2% | | Iron concentrate production ('000 tonnes) | 327.50 | 337.53 | -3.0% | Average Unit Cash Operating Cost of Iron Concentrate (RMB/tonne) | Cost Item | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Mining cost | 314.64 | 329.63 | -4.5% | | Dry processing cost | 115.73 | 115.09 | 0.6% | | Wet processing cost | 129.21 | 127.68 | 1.2% | | Administrative expenses | 73.80 | 62.17 | 18.7% | | Taxes and fees | 30.05 | 36.30 | -17.2% | | Total | 663.43 | 670.87 | -1.1% | Green Building Materials - Sand and Stone Aggregates Business The Group's green building materials business saw significant growth in production and sales volumes, driven by the resumption of operations, despite a decline in average selling prices - The Group's solid waste comprehensive utilization projects have a total processing capacity of approximately 6.4 million tonnes per year[44] - The growth in production and sales volume of sand and stone aggregates was mainly due to the resumption of normal operations at Jiheng Mining and partial resumption at Jingyuancheng Mining[45] - The decrease in average cash operating costs for sand and stone aggregates was primarily due to lower unit electricity costs and reduced unit labor costs resulting from increased production and sales[46] Sand and Stone Aggregates Production and Sales Details | Indicator | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Production ('000 tonnes) | 1,037.60 | 466.21 | +122.6% | | Sales volume ('000 tonnes) | 1,258.57 | 460.35 | +173.4% | | Average selling price (RMB) | 25.95 | 33.12 | -21.7% | | Average unit cash operating cost (RMB) | 20.49 | 22.10 | -7.3% | Safety and Environmental Protection The Group prioritizes safety and environmental protection, aiming for zero accidents, occupational diseases, and pollution incidents, and reported no major incidents during the period - The Group adheres to the goal of "zero safety accidents, zero new occupational diseases, and zero environmental pollution incidents"[47] - During the reporting period, the Group had no major safety or environmental accidents[48] Financial Review This section details the Group's financial performance, highlighting revenue decline from lower selling prices, a sharp drop in gross profit, and an expanded net loss despite reduced operating expenses Revenue Revenue decreased by 15.6% to RMB 273.1 million, reflecting the combined effect of lower selling prices for iron concentrate and aggregates, partially offset by higher aggregate sales volume - The Group's revenue for the period was approximately RMB 273.1 million, a decrease of about RMB 50.6 million or 15.6% year-on-year[49] - The decrease in revenue was mainly due to the combined effect of lower selling prices for iron concentrate and sand and stone aggregates, and an increase in the sales volume of aggregate products[49] Cost of Sales Cost of sales decreased by 3.2% to RMB 268.3 million, primarily due to lower unit sales costs for products and reduced sales volume of iron concentrate - The Group's cost of sales for the period was approximately RMB 268.3 million, a decrease of about RMB 8.8 million or 3.2% year-on-year[50] - The decrease was mainly due to lower unit sales costs for iron concentrate and sand and stone aggregate products, as well as a decrease in the sales volume of iron concentrate[50] Gross Profit and Gross Profit Margin Gross profit plummeted to RMB 4.8 million and the gross profit margin fell to 1.8%, mainly due to a significant drop in the selling price of iron concentrate products - The Group's gross profit was approximately RMB 4.8 million, a decrease of about RMB 41.9 million, with the gross profit margin at 1.8%, down 12.6 percentage points year-on-year[51] - The decrease in gross profit was primarily caused by the significant decline in the selling price of the Group's iron concentrate products[51] Distribution Expenses Distribution expenses decreased to RMB 0.6 million, mainly due to reduced transportation costs for moving finished sand and stone aggregate products within the mining area - The Group's distribution expenses were approximately RMB 0.6 million, a decrease of about RMB 0.2 million, mainly due to reduced transportation costs for finished aggregate products[52] Administrative Expenses Administrative expenses fell by 13.2% to RMB 51.8 million, primarily as a result of lower work suspension losses included in administrative costs - The Group's administrative expenses were approximately RMB 51.8 million, a decrease of about RMB 7.9 million or 13.2%, mainly due to a reduction in work suspension losses[53] Finance Costs Finance costs decreased by 9.1% to RMB 27.9 million, which was mainly attributable to a lower average balance of bank borrowings during the period - The Group's finance costs were approximately RMB 27.9 million, a decrease of about RMB 2.8 million or 9.1%, primarily due to a lower average balance of bank borrowings[54] Income Tax Credit The income tax credit for the period was RMB 2.5 million, an increase from RMB 1.7 million in the prior year, comprising an overprovision of current tax and deferred tax - The Group's income tax credit for the period was approximately RMB 2.5 million, compared to an income tax credit of approximately RMB 1.7 million in the same period last year[55] Total Loss for the Period The Group recorded a post-tax loss of RMB 75.6 million, an increase of RMB 25.0 million from the prior year, driven by lower gross profit from reduced iron concentrate prices - The Group recorded a post-tax loss of approximately RMB 75.6 million, an increase in loss of about RMB 25.0 million compared to the same period last year[56] - The loss was mainly due to the decline in sales gross profit caused by a significant drop in the selling price of iron concentrate, combined with the effects of lower administrative and finance costs[56] Property, Plant and Equipment The net book value of property, plant and equipment decreased by 2.1% to RMB 919.7 million as of June 30, 2025, primarily due to depreciation charges - As of June 30, 2025, the net book value of the Group's property, plant and equipment was approximately RMB 919.7 million, a decrease of about RMB 19.9 million or 2.1% from the end of last year, mainly due to depreciation[57] Construction in Progress Construction in progress stood at RMB 116.9 million as of June 30, 2025, representing a slight increase of RMB 1.2 million from the end of the previous year - As of June 30, 2025, the Group's construction in progress was approximately RMB 116.9 million, an increase of about RMB 1.2 million from the end of last year[58] Intangible Assets The net value of intangible assets, mainly comprising mining rights, decreased to RMB 40.6 million as of June 30, 2025, down by RMB 4.4 million from year-end 2024 - The Group's intangible assets, mainly consisting of mining rights and related premiums, had a net value of approximately RMB 40.6 million as of June 30, 2025, a decrease of about RMB 4.4 million from the end of last year[59] Inventories Inventories decreased by 9.3% to RMB 100.8 million as of June 30, 2025, primarily due to a reduction in the value of finished goods - As of June 30, 2025, the Group's inventories were approximately RMB 100.8 million, a decrease of about RMB 10.3 million or 9.3% from the end of last year, mainly due to a decrease in the amount of finished goods inventory[61] Trade and Other Receivables Trade receivables and bills receivable decreased to RMB 98.2 million due to lower credit sales, while other receivables also saw a slight reduction - As of June 30, 2025, the Group's trade and bills receivables were approximately RMB 98.2 million, a decrease of about RMB 11.9 million from the end of last year, mainly due to a reduction in credit sales[62] - The Group's other receivables were approximately RMB 89.9 million, a decrease of about RMB 1.8 million from the end of last year, mainly due to a decrease in prepayments[62] Trade and Other Payables Trade and other payables increased, driven by higher amounts due to major suppliers and increased related party transactions and accruals - As of June 30, 2025, the Group's trade and bills payables were approximately RMB 129.1 million, an increase of about RMB 2.2 million from the end of last year, mainly due to an increase in trade payables to major suppliers[63] - The Group's other payables were approximately RMB 84.2 million, an increase of about RMB 5.8 million from the end of last year, mainly due to an increase in related party transactions and accrued expenses[63] Cash and Borrowings Cash and cash equivalents decreased to RMB 13.9 million, while total bank borrowings stood at RMB 870.5 million, with a significant portion classified as current liabilities - As of June 30, 2025, the Group's cash and cash equivalents balance was approximately RMB 13.9 million, a decrease of about RMB 20.7 million from the end of last year[64] - As of June 30, 2025, the Group's bank borrowings were approximately RMB 870.5 million, of which about RMB 773.5 million were current liabilities, with annual interest rates ranging from 2.8% to 7.5%[64] Gearing Ratio The gearing ratio increased by 1.7 percentage points to 48.6% as of June 30, 2025, compared to the end of the previous year - The Group's gearing ratio as of June 30, 2025 was approximately 48.6%, an increase of about 1.7% from the end of last year[66] Capital Commitments Total capital commitments amounted to approximately RMB 14.9 million as of June 30, 2025, a decrease from the end of 2024 - As of June 30, 2025, the Group's total capital commitments were approximately RMB 14.9 million (December 31, 2024: approximately RMB 18.1 million)[67] Interest Rate Risk, Foreign Currency Risk The Group faces limited interest rate risk due to the short-term nature of its borrowings and is exposed to foreign currency risk as its RMB-denominated transactions are not hedged - The Group's fair value interest rate risk is mainly related to bank borrowings, but the risk is low as they are due within one to three years, and there is currently no interest rate hedging policy[68] - The Group's main operations are in China with transactions primarily in RMB, which is not freely convertible, exposing it to exchange rate risk that is not hedged[68] Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures The Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period - The Group had no material acquisitions or disposals of subsidiaries, associates, and joint ventures during the reporting period[69] Pledge of Assets, Contingent Liabilities The Group's bank borrowings of RMB 870.5 million are secured by various assets, including mining rights, properties, and receivables, with no other significant contingent liabilities reported - As of June 30, 2025, the Group's bank borrowings of RMB 870.5 million were secured by the Group's mining rights, right-of-use assets, properties, trade receivables, bank deposits, and assets of related parties and third parties[70] - As of June 30, 2025, the Group had no significant contingent liabilities[71] Outlook The Group anticipates a looser global iron ore market in the second half of 2025 and plans to focus on cost control, expand its green building materials business, and potentially dispose of its depleted iron ore assets - In the second half of 2025, the global iron ore supply-demand pattern is expected to shift towards a looser balance, with domestic demand showing structural differentiation[72] - The Company will continue to strengthen cost control and efficiency, adjust product and sales strategies, broaden market channels, and enhance customer credit management[73] - Given the depletion of Jiheng Mining's open-pit iron ore, the Group may consider disposing of its iron ore business to improve financial performance[73] - The Group will seize opportunities from the construction of the Xiong'an New Area to expand its sand and stone aggregates production scale and enhance profitability[73] Other Information Share Option Scheme As of the date of this announcement, the Company has not adopted any share option scheme - As at the date of this announcement, the Company had not adopted any share option scheme[74] Model Code for Securities Transactions by Directors The Company has adopted the Model Code as set out in Appendix C3 of the Listing Rules, and all directors have confirmed their compliance throughout the period - The Company has adopted the Model Code as set out in Appendix C3 of the Listing Rules, and all directors have confirmed their compliance with its provisions throughout the six months ended June 30, 2025[75] Competition and Conflict of Interests As of June 30, 2025, no director, controlling shareholder, or major shareholder held any competing interests in businesses that compete with the Group - As of June 30, 2025, no director, controlling shareholder, substantial shareholder, or their respective close associates had any competing interests in any business that directly or indirectly competes or may compete with the Group[76] Purchase, Redemption or Sale of Listed Securities Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the first half of 2025 - During the first half of 2025, neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company's listed securities (including the sale of treasury shares)[77] Employees and Remuneration Policies The Group had 733 employees as of June 30, 2025, with total remuneration expenses decreasing by 7.0% to RMB 33.6 million, and compensation is linked to performance - As of June 30, 2025, the Group had a total of 733 employees (June 30, 2024: 797), with total remuneration and other employee benefits amounting to approximately RMB 33.6 million (June 30, 2024: RMB 36.1 million)[78] - Employee income is linked to individual performance and the Group's operating results, and the Group participates in local government-managed retirement pension schemes[78] - The Group enhances employees' professional skills by continuously improving its internal training system and formulating scientific and reasonable training and development plans[79] Corporate Governance The Group has complied with the Corporate Governance Code, and its Audit Committee has reviewed the interim financial results, confirming their proper preparation and disclosure - The Group has complied with the Corporate Governance Code as set out in Appendix C1 to the Listing Rules[80] - The Audit Committee, comprising three independent non-executive directors, has reviewed the interim financial results and unanimously agreed that they have been prepared in accordance with applicable accounting principles and the Listing Rules with appropriate disclosures made[81][82] Interim Dividend The Board has resolved not to declare an interim dividend for the six months ended June 30, 2025, consistent with the same period in 2024 - The Board has resolved not to declare an interim dividend for the six months ended June 30, 2025 (2024: Nil)[83] Material Litigation The Group was not involved in any material litigation or arbitration during the six months ended June 30, 2025, and is not aware of any pending or threatened material claims - During the six months ended June 30, 2025, the Group was not involved in any material litigation or arbitration[84] Events after the Reporting Period No significant events affecting the Group have occurred between July 1, 2025, and the date of this announcement - Save as disclosed in this announcement, no significant events affecting the Group have occurred from July 1, 2025 up to the date of this announcement[85] Publication of Interim Results and Report This results announcement and the 2025 interim report will be published on the websites of the Hong Kong Stock Exchange and the Company - This results announcement and the Company's 2025 Interim Report will be published on the website of the Hong Kong Stock Exchange at www.hkexnews.hk and on the Company's website at http://www.aoweiholding.com[86](index=86&type=chunk) Appreciation The Board of Directors extends its gratitude to the management, employees, shareholders, creditors, customers, and business partners for their contributions and support - The Board of Directors expresses its gratitude to the Group's management and employees, as well as to all shareholders, creditors, customers, and business partners[87] Board of Directors As of the announcement date, the Board comprises five executive directors, including the Chairman and CEO, and three independent non-executive directors - The Company's executive directors are Mr. Li Yanjun (Chairman), Mr. Li Ziwei, Mr. Zuo Yuehui, Mr. Sun Tao, and Ms. Chen Lixian[89] - The Company's independent non-executive directors are Dr. Wong Sze Lok, Mr. Meng Likun, and Mr. Ge Xinjian[89]