翼辰实业(01596) - 2025 - 中期业绩

Report Overview This section provides an overview of the company's interim consolidated results, including company information, reporting period, and currency unit Company Information and Report Statement Hebei Yichen Industrial Group Corporation Limited (Stock Code: 1596) announced its unaudited condensed consolidated interim results for the six months ended June 30, 2025, with amounts stated in RMB thousand - The company name is Hebei Yichen Industrial Group Corporation Limited, with stock code 1596[2] - This announcement presents the unaudited condensed consolidated interim results for the six months ended June 30, 2025[2] - All monetary amounts are expressed in RMB thousand[2] Consolidated Financial Statements This section presents the company's consolidated income statement and balance sheet, highlighting key financial performance and position metrics Consolidated Income Statement For the six months ended June 30, 2025, total operating revenue was RMB477,143 thousand, a 4.3% year-on-year decrease, with operating profit turning to RMB53,612 thousand from a loss, net profit at RMB48,671 thousand, and basic earnings per share at RMB0.05, significantly improving from a loss in the prior period Key Consolidated Income Statement Data (For the six months ended June 30) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | YoY Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 477,143 | 498,707 | -4.3% | | Total Operating Costs | 434,715 | 478,062 | -9.07% | | Operating Profit/(Loss) | 53,612 | (51,618) | Significant improvement | | Total Profit/(Loss) | 48,671 | (42,171) | Significant improvement | | Net Profit/(Net Loss) | 48,671 | (42,171) | Significant improvement | | Net Profit/(Net Loss) Attributable to Owners of the Parent | 48,617 | (42,177) | Significant improvement | | Basic Earnings/(Loss) Per Share (RMB) | 0.05 | (0.05) | Significant improvement | Consolidated Balance Sheet As of June 30, 2025, the company's total assets were RMB3,593,149 thousand, a 2.6% increase from the end of 2024, with total current assets at RMB2,004,360 thousand and total non-current assets at RMB1,588,789 thousand, while total liabilities increased by 5.5% to RMB1,167,767 thousand Key Consolidated Balance Sheet Data (As of June 30) | Indicator | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | Change | | :--- | :--- | :--- | :--- | | Assets | | | | | Total Current Assets | 2,004,360 | 1,930,330 | +3.83% | | Total Non-current Assets | 1,588,789 | 1,571,167 | +1.12% | | Total Assets | 3,593,149 | 3,501,497 | +2.62% | | Liabilities | | | | | Total Current Liabilities | 648,182 | 717,680 | -9.68% | | Total Non-current Liabilities | 519,585 | 389,444 | +33.42% | | Total Liabilities | 1,167,767 | 1,107,124 | +5.48% | | Equity | | | | | Total Equity Attributable to Owners of the Parent | 2,412,403 | 2,381,448 | +1.30% | | Non-controlling Interests | 12,979 | 12,925 | +0.42% | | Total Equity | 2,425,382 | 2,394,373 | +1.30% | Notes to Financial Statements This section provides detailed explanations of the company's general information, accounting policies, segment performance, and key financial account movements General Information Hebei Yichen Industrial Group Corporation Limited, incorporated in China in 2001, primarily engages in the R&D, production, and sale of railway fastening system products, welding wire products, and railway sleeper products. Its H-shares were listed on the HKEX in 2016, and these interim results are unaudited but reviewed by the Audit Committee - The company's principal activities include the R&D, production, and sale of railway fastening system products, welding wire products, and railway sleeper products[8] - The consolidated results for the six months ended June 30, 2025, are unaudited by the company's auditor but have been reviewed by the Audit Committee[8] Basis of Preparation and Accounting Policies The financial statements are prepared on a going concern basis, in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance of China and relevant provisions of the HKEX Listing Rules - The financial statements are prepared on a going concern basis and comply with Chinese Accounting Standards and the disclosure requirements of the HKEX Listing Rules[9] Segment Information The Group segments its business into railway fastening system products, welding wire products, and railway sleeper products, assessing segment performance based on gross profit. In H1 2025, railway fastening system products saw significant gross profit growth, while welding wire and railway sleeper products experienced minor changes - The Group's business segments are categorized by product type: railway fastening system products, welding wire products, and railway sleeper products[11] - Management determines segment performance based on gross profit[12] Segment Gross Profit (For the six months ended June 30) | Business Segment | Jan-Jun 2025 Gross Profit (RMB'000) | Jan-Jun 2024 Gross Profit (RMB'000) | YoY Change | | :--- | :--- | :--- | :--- | | Railway Fastening System | 119,799 | 94,524 | +26.74% | | Welding Wire | (370) | (862) | +57.08% | | Railway Sleeper | 6,261 | 6,657 | -5.95% | | Others | 1,095 | 1,269 | -13.71% | | Total | 126,785 | 101,588 | +24.80% | Railway Fastening System Products Railway fastening system products generated total revenue of RMB303,537 thousand and gross profit of RMB119,799 thousand in H1 2025, with a gross profit margin of 39.5%, a significant increase from the prior period, driven by higher revenue, optimized customer structure, and lower raw material prices Key Data for Railway Fastening System Products (For the six months ended June 30) | Indicator | Jan-Jun 2025 (RMB'000) | Jan-Jun 2024 (RMB'000) | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | 303,537 | 300,433 | +1.03% | | Total Operating Costs | (183,738) | (205,909) | -10.86% | | Segment Gross Profit | 119,799 | 94,524 | +26.74% | - The gross profit margin for railway fastening system products increased from 31.5% in H1 2024 to 39.5% in H1 2025, an increase of 8.0 percentage points[12] Welding Wire Products Welding wire products generated total revenue of RMB141,841 thousand in H1 2025, with a negative gross profit of RMB370 thousand and a gross profit margin of -0.3%, showing minor change compared to the prior period Key Data for Welding Wire Products (For the six months ended June 30) | Indicator | Jan-Jun 2025 (RMB'000) | Jan-Jun 2024 (RMB'000) | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | 141,841 | 154,013 | -7.90% | | Total Operating Costs | (142,211) | (154,875) | -8.20% | | Segment Gross Profit | (370) | (862) | +57.08% | - The gross profit margin for welding wire products increased from -0.6% in H1 2024 to -0.3% in H1 2025, a minor change[12] Railway Sleeper Products Railway sleeper products generated total revenue of RMB28,761 thousand and gross profit of RMB6,261 thousand in H1 2025, with a gross profit margin of 21.9%, an increase from the prior period, mainly due to optimized internal management and cost reduction efforts Key Data for Railway Sleeper Products (For the six months ended June 30) | Indicator | Jan-Jun 2025 (RMB'000) | Jan-Jun 2024 (RMB'000) | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | 28,761 | 40,556 | -29.10% | | Total Operating Costs | (22,500) | (33,899) | -33.62% | | Segment Gross Profit | 6,261 | 6,657 | -5.95% | - The gross profit margin for railway sleeper products increased from 16.5% in H1 2024 to 21.9% in H1 2025, an increase of 5.4 percentage points[12] Notes on Key Financial Items This section details the movements and analyses of significant financial accounts, including receivables, payables, revenue, costs, and profit components Bills Receivable As of June 30, 2025, the carrying value of bills receivable was RMB31,449 thousand, a 42.5% decrease from RMB54,689 thousand at the end of 2024 Carrying Value of Bills Receivable | Indicator | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | Change | | :--- | :--- | :--- | :--- | | Carrying Value of Bills Receivable | 31,449 | 54,689 | -42.5% | Accounts Receivable As of June 30, 2025, the carrying value of accounts receivable was RMB1,150,169 thousand, a 3.6% decrease from RMB1,193,124 thousand at the end of 2024, with the highest proportion being current within one year Carrying Value and Aging Analysis of Accounts Receivable | Indicator | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | Change | | :--- | :--- | :--- | :--- | | Carrying Value of Accounts Receivable | 1,150,169 | 1,193,124 | -3.6% | | Within 1 year | 691,591 | 721,712 | -4.17% | | 1 to 2 years | 303,987 | 313,721 | -3.09% | | 2 to 3 years | 192,613 | 213,020 | -9.58% | | Over 3 years | 257,646 | 242,396 | +6.37% | Bills Payable As of June 30, 2025, bills payable amounted to RMB37,474 thousand, a 29.3% decrease from RMB53,000 thousand at the end of 2024 Bills Payable | Indicator | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | Change | | :--- | :--- | :--- | :--- | | Bills Payable | 37,474 | 53,000 | -29.3% | Accounts Payable As of June 30, 2025, accounts payable amounted to RMB371,016 thousand, a 5.4% decrease from RMB391,730 thousand at the end of 2024, with 84.5% of accounts payable due within one year Accounts Payable and Aging Analysis | Indicator | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | Change | | :--- | :--- | :--- | :--- | | Accounts Payable | 371,016 | 391,730 | -5.39% | | Within 1 year | 313,416 | 328,095 | -4.47% | | Over 1 year | 57,600 | 63,635 | -9.49% | Operating Revenue and Costs In H1 2025, principal business revenue was RMB474,139 thousand, principal business costs were RMB348,449 thousand, and other business revenue was RMB3,004 thousand, with both total revenue and total costs decreasing year-on-year Operating Revenue and Costs (For the six months ended June 30) | Indicator | Jan-Jun 2025 Revenue (RMB'000) | Jan-Jun 2025 Costs (RMB'000) | Jan-Jun 2024 Revenue (RMB'000) | Jan-Jun 2024 Costs (RMB'000) | | :--- | :--- | :--- | :--- | :--- | | Principal Business | 474,139 | 348,449 | 495,002 | 394,683 | | Other Businesses | 3,004 | 1,909 | 3,705 | 2,436 | | Total | 477,143 | 350,358 | 498,707 | 397,119 | Investment Income/(Loss) Investment income in H1 2025 was RMB16,041 thousand, a significant increase from RMB8,273 thousand in H1 2024, primarily due to increased income from long-term equity investments accounted for using the equity method Investment Income/(Loss) (For the six months ended June 30) | Indicator | June 30, 2025 (RMB'000) | June 30, 2024 (RMB'000) | Change | | :--- | :--- | :--- | :--- | | Income from Long-term Equity Investments Accounted for Using Equity Method | 16,041 | 7,600 | +111.07% | | Total Investment Income | 16,041 | 8,273 | +93.90% | Fair Value Change Gains/(Losses) Fair value change gains were RMB0 in H1 2025, a significant improvement from a loss of RMB58,506 thousand in H1 2024, primarily because the company sold all its Hong Kong listed securities in 2024 Fair Value Change Gains/(Losses) (For the six months ended June 30) | Indicator | June 30, 2025 (RMB'000) | June 30, 2024 (RMB'000) | Change | | :--- | :--- | :--- | :--- | | Financial Assets Held for Trading | – | (58,506) | Significant improvement | | Total | – | (58,506) | Significant improvement | Income Tax Expense Income tax expense in H1 2025 was RMB4,934 thousand, a significant improvement from a loss of RMB9,422 thousand in H1 2024, primarily due to changes in deferred income tax expense Income Tax Expense (For the six months ended June 30) | Indicator | June 30, 2025 (RMB'000) | June 30, 2024 (RMB'000) | Change | | :--- | :--- | :--- | :--- | | Current Income Tax Expense | 5,880 | 3,607 | +63.01% | | Deferred Income Tax Expense | (946) | (13,029) | Significant improvement | | Total | 4,934 | (9,422) | Significant improvement | Earnings/(Loss) Per Share Basic earnings per share in H1 2025 was RMB0.05, turning a loss into profit from basic loss per share of RMB0.05 in H1 2024 Earnings/(Loss) Per Share (For the six months ended June 30) | Indicator | June 30, 2025 (RMB) | June 30, 2024 (RMB) | Change | | :--- | :--- | :--- | :--- | | Basic Earnings/(Loss) Per Share | 0.05 | (0.05) | Turned loss into profit | | Diluted Earnings/(Loss) Per Share | 0.05 | (0.05) | Turned loss into profit | - For the six months ended June 30, 2025, and 2024, there were no potential dilutive ordinary shares, thus diluted earnings per share equal basic earnings per share[21] Dividends The Board does not recommend an interim dividend for the six months ended June 30, 2025, while the 2024 final dividend was paid in July 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[22] - The final dividend for the year ended December 31, 2024 (approximately RMB0.0168 per share) was paid in July 2025[22] Management Discussion and Analysis This section provides an overview of the industry, business performance, future outlook, detailed financial performance analysis, and financial position Industry Review In H1 2025, the national economy maintained a stable and improving trend, with GDP growing by 5.3% year-on-year, and national railway fixed asset investment reaching RMB355.9 billion, a 5.5% increase, accelerating railway infrastructure construction - In H1 2025, China's GDP grew by 5.3% year-on-year[23] - National railway fixed asset investment in H1 2025 amounted to RMB355.9 billion, a year-on-year increase of 5.5%[23] - A total of 301 kilometers of new railway lines were put into operation, and 220.70 kilometers of new urban rail transit lines were added in H1 2025[23] Business Review In H1 2025, the Group's total revenue decreased by 4.3% year-on-year to RMB477.1 million, primarily due to reduced revenue from welding wire and railway sleeper products, though external impacts were effectively managed through proactive operational adjustments - In H1 2025, the Group's total revenue was approximately RMB477.1 million, a year-on-year decrease of approximately 4.3%[24] - The company actively communicated with customers and suppliers, adjusting production and operation plans based on demand and market changes to address external uncertainties[24] Railway Fastening System Products Railway fastening system products revenue increased by 1.0% to RMB303.5 million, accounting for 63.6% of total revenue, with gross profit margin rising 8.0 percentage points to 39.5%, and outstanding contract value of approximately RMB2,132.1 million - Revenue from railway fastening system products was approximately RMB303.5 million, a year-on-year increase of approximately 1.0%, accounting for approximately 63.6% of total revenue[25] - Operating costs decreased by approximately RMB22.2 million, mainly due to optimized customer structure and lower raw material prices[25] - Gross profit margin increased by 8.0 percentage points to 39.5%, with gross profit increasing by 26.8% to RMB119.8 million[26] - As of June 30, 2025, the outstanding contract value was approximately RMB2,132.1 million[27] Welding Wire Products Welding wire products revenue decreased by 7.9% year-on-year to RMB141.8 million, accounting for 29.7% of total revenue, primarily due to intense market competition and declining selling prices, with plans to expand the customer base - Revenue from welding wire products was approximately RMB141.8 million, a year-on-year decrease of approximately 7.9%, accounting for approximately 29.7% of total revenue[28] - The decrease in revenue was mainly due to intense market competition and a decline in the selling price of welding wire products[28] - The company plans to further expand its customer base while continuing to cooperate with existing major customers[28] Railway Sleeper Products Railway sleeper products revenue decreased by 29.1% year-on-year to RMB28.8 million, accounting for 6.0% of total revenue, primarily due to delays in supply as per customer requirements - Revenue from railway sleeper products was approximately RMB28.8 million, a year-on-year decrease of approximately 29.1%, accounting for approximately 6.0% of total revenue[29] - The decrease in revenue was mainly due to delays in supplying railway sleeper products to customers as per their requirements[29] Future Outlook China's railway construction investment is expected to remain high, with new-generation smart high-speed rail anticipated by 2027, and the Group will seize opportunities to enhance product quality and service, while exploring vertical industry extension to build diverse product lines - In H1 2025, the national economy showed stable and improving trends, with railway construction investment remaining high[30] - Multiple new lines and stations commenced operation, ongoing construction projects progressed smoothly, and preliminary project work was carried out in an orderly manner[31][32] - China State Railway Group Co., Ltd. will accelerate railway planning and construction, with the new generation of smart high-speed rail expected to be implemented by 2027[33] - The Group will seize opportunities from the 'Transportation Powerhouse' initiative, focusing on high-quality railway fastening system products and railway sleeper products, enhancing product quality and service levels, and exploring vertical industry extension to build diverse product lines[33] Performance Analysis This section provides a detailed breakdown and analysis of the Group's revenue, costs, gross profit, operating expenses, and net profit for the reporting period Revenue The Group's total revenue decreased by 4.3% from RMB498.7 million in H1 2024 to RMB477.1 million in H1 2025, primarily due to reduced revenue from welding wire and railway sleeper products, while railway fastening system products revenue slightly increased by 1.0% Revenue Composition and Changes (For the six months ended June 30) | Product Type | H1 2025 Revenue (RMB million) | H1 2024 Revenue (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Railway Fastening System Products | 303.5 | 300.4 | +1.0% | | Welding Wire Products | 141.8 | 154.0 | -7.9% | | Railway Sleeper Products | 28.8 | 40.6 | -29.1% | | Total Revenue | 477.1 | 498.7 | -4.3% | - Other business income is derived from the sale of raw materials, provision of product processing services, and electricity sales[36] Operating Costs The Group's operating costs decreased by 11.8% to RMB350.4 million in H1 2025, primarily due to optimized customer structure and lower raw material prices, with all product lines experiencing varying degrees of cost reduction Operating Costs Changes (For the six months ended June 30) | Product Type | H1 2025 Costs (RMB million) | H1 2024 Costs (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Railway Fastening System Products | 183.7 | 205.9 | -10.8% | | Welding Wire Products | 142.2 | 154.9 | -8.2% | | Railway Sleeper Products | 22.5 | 33.9 | -33.6% | | Total Operating Costs | 350.4 | 397.1 | -11.8% | Gross Profit In H1 2025, the Group's gross profit increased by 24.7% to RMB126.7 million, driven by increased revenue from railway fastening system products, optimized customer structure, and lower raw material prices, with significant gross profit margin improvements for railway fastening system and railway sleeper products Gross Profit and Gross Profit Margin Changes (For the six months ended June 30) | Product Type | H1 2025 Gross Profit (RMB million) | H1 2024 Gross Profit (RMB million) | YoY Change | H1 2025 Gross Profit Margin | H1 2024 Gross Profit Margin | GPM Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Railway Fastening System Products | 119.8 | 94.5 | +26.8% | 39.5% | 31.5% | +8.0% | | Welding Wire Products | -0.4 | -0.9 | +55.6% | -0.3% | -0.6% | +0.3% | | Railway Sleeper Products | 6.3 | 6.7 | -6.0% | 21.9% | 16.5% | +5.4% | | Total Gross Profit | 126.7 | 101.6 | +24.7% | | | | Selling Expenses Selling expenses in H1 2025 were RMB10.2 million, a minor change from RMB10.3 million in H1 2024, with both periods representing 2.1% of total revenue Selling Expenses (For the six months ended June 30) | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change | % of Total Revenue (2025) | % of Total Revenue (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | | Selling Expenses | 10.2 | 10.3 | -1.0% | 2.1% | 2.1% | Administrative Expenses Administrative expenses in H1 2025 were RMB44.0 million, an increase from RMB42.2 million in H1 2024, primarily due to higher depreciation and amortization, with its percentage of total revenue rising from 8.5% to 9.2% Administrative Expenses (For the six months ended June 30) | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change | % of Total Revenue (2025) | % of Total Revenue (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | | Administrative Expenses | 44.0 | 42.2 | +4.3% | 9.2% | 8.5% | - The increase in administrative expenses was mainly due to higher depreciation and amortization[42] Research and Development Expenses R&D expenses in H1 2025 were RMB14.6 million, an increase from RMB13.0 million in H1 2024, primarily due to the Group's active efforts to enhance its technological capabilities and increased R&D investment, with its percentage of total revenue rising from 2.6% to 3.1% Research and Development Expenses (For the six months ended June 30) | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change | % of Total Revenue (2025) | % of Total Revenue (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | | R&D Expenses | 14.6 | 13.0 | +12.3% | 3.1% | 2.6% | - The increase in R&D expenses was mainly due to the Group's active efforts to enhance its technological capabilities and increased R&D investment[43] Investment Income Investment income in H1 2025 was RMB16.0 million, a significant increase from RMB8.3 million in H1 2024, primarily due to increased adjusted profits from associates Investment Income (For the six months ended June 30) | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Investment Income | 16.0 | 8.3 | +92.8% | - The increase in investment income was mainly due to increased adjusted profits from associates[44] Fair Value Change Gains/(Losses) Fair value change gains were RMB0 in H1 2025, a significant improvement from a loss of RMB58.5 million in H1 2024, as the company sold all its Hong Kong listed securities in 2024 Fair Value Change Gains/(Losses) (For the six months ended June 30) | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Fair Value Change Gains/(Losses) | 0 | (58.5) | Significant improvement | - There were no fair value change losses in H1 2025, as the company had sold all its Hong Kong listed securities in 2024[45] Finance Costs – Net Finance costs – net in H1 2025 were RMB8.6 million, a decrease from RMB9.1 million in H1 2024, primarily due to increased interest income Finance Costs – Net (For the six months ended June 30) | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Finance Costs – Net | 8.6 | 9.1 | -5.5% | - The decrease in net finance costs was mainly due to increased interest income[46] Operating Profit/(Loss) In H1 2025, the Group recorded an operating profit of RMB53.6 million, a significant improvement of approximately RMB105.2 million from an operating loss of RMB51.6 million in H1 2024 Operating Profit/(Loss) (For the six months ended June 30) | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Profit/(Loss) | 53.6 | (51.6) | Significant improvement (+RMB105.2 million) | Net Profit/(Loss) In H1 2025, the Group's net profit was RMB48.6 million, a significant improvement of approximately RMB90.8 million from a net loss of RMB42.2 million in H1 2024, turning a loss into profit with basic earnings per share of RMB0.05 Net Profit/(Loss) (For the six months ended June 30) | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Net Profit/(Loss) | 48.6 | (42.2) | Significant improvement (+RMB90.8 million) | | Net Profit/(Loss) Attributable to Owners of the Parent | 48.6 | (42.2) | Significant improvement (+RMB90.8 million) | | Basic Earnings/(Loss) Per Share (RMB) | 0.05 | (0.05) | Turned loss into profit (+RMB0.1) | - The increase in net profit was mainly due to the Group's active efforts in optimizing customer structure and lower raw material prices, resulting in overall good operating performance[48] Financial Position Analysis This section analyzes the Group's total assets, liabilities, equity, and gearing ratio, highlighting key changes and their drivers Total Assets As of June 30, 2025, the Group's total assets were RMB3,593.1 million, a 2.6% increase from the end of 2024, primarily due to increased inventory for railway fastening systems Total Assets (As of June 30) | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 3,593.1 | 3,501.5 | +2.6% | - The increase in total assets was mainly due to increased inventory for railway fastening systems[49] Total Liabilities As of June 30, 2025, the Group's total liabilities were RMB1,167.8 million, a 5.5% increase from the end of 2024, primarily due to increased bank borrowings Total Liabilities (As of June 30) | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Total Liabilities | 1,167.8 | 1,107.1 | +5.5% | - The increase in total liabilities was mainly due to increased bank borrowings[50] Total Equity As of June 30, 2025, the Group's total equity was RMB2,425.4 million, a 1.3% increase from the end of 2024, primarily due to the net profit generated in H1 2025 Total Equity (As of June 30) | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Total Equity | 2,425.4 | 2,394.4 | +1.3% | - The increase in total equity was mainly due to the net profit generated in H1 2025[51] Gearing Ratio As of June 30, 2025, the Group's gearing ratio was 16.8%, a 0.5 percentage point decrease from 17.3% at the end of 2024, primarily due to an increase in cash and cash equivalents Gearing Ratio (As of June 30) | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Gearing Ratio | 16.8% | 17.3% | -0.5 percentage points | - The decrease in the gearing ratio was mainly due to an increase in the Group's cash and cash equivalents[52] Employees and Remuneration Policy As of June 30, 2025, the Group had 1,274 employees, with staff costs of approximately RMB50.5 million, a minor change from the prior period, and remuneration standards are based on employee qualifications, job responsibilities, and industry averages Employees and Staff Costs (For the six months ended June 30) | Indicator | June 30, 2025 | June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Number of Employees | 1,274 | 1,277 | -3 | | Staff Costs (RMB million) | 50.5 | 51.0 | -1.0% | - Remuneration standards are determined based on employee qualifications, job responsibilities, and industry average levels, with bonuses awarded based on operating performance and individual work performance[53] Events After Reporting Period No events have occurred after the balance sheet date and up to the date of this announcement that would have a material impact on the Group - No events have occurred after the balance sheet date and up to the date of this announcement that would have a material impact on the Group[54] Interim Dividends The Board does not recommend an interim dividend for the six months ended June 30, 2025, to meet daily operational liquidity needs and support the smooth implementation of long-term development strategies - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[55] - The decision not to distribute dividends aims to meet the company's daily operational liquidity needs and support the smooth implementation of its medium-to-long-term development strategies[55] Purchase, Sale or Redemption of the Company's Listed Securities As of June 30, 2025, the trustee of the company's H-share award scheme cumulatively purchased 10,597,000 H-shares for employee incentive plans at an average price of approximately RMB2.61 per share, with no other listed securities purchased, sold, or redeemed by the company or its subsidiaries during the period - As of June 30, 2025, the trustee of the company's H-share award scheme cumulatively purchased 10,597,000 H-shares at an average price of approximately RMB2.61 per share[56] - The H-shares were purchased for the employee incentive plan[56] - During the period, neither the company nor its subsidiaries purchased, sold, or redeemed any other listed securities[56] Other Information This section covers the company's compliance with securities dealing and corporate governance codes, audit committee review, and publication details of the results and report Compliance with Securities Dealing Code The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules, and all directors and supervisors confirmed full compliance during the period - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and directors and supervisors confirmed full compliance[57] Compliance with Corporate Governance Code The company is committed to maintaining high standards of corporate governance and complied with all code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules for the six months ended June 30, 2025 - The company complied with all code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules during the period[58] Audit Committee The condensed consolidated interim financial information was unaudited by the company's auditor but reviewed by the Audit Committee, which concurred with the accounting principles, treatments, and practices adopted - The condensed consolidated interim financial information was unaudited by the company's auditor[59] - The company's Audit Committee has reviewed and concurred with the accounting principles, accounting treatments, and practices adopted by the company[59] Publication of Results and Report This results announcement has been published on the HKEX 'Disclosure of Interests' website and the company's website, with the 2025 interim report containing all required information to be published on both websites, and Board members as of the announcement date are listed - This results announcement has been published on the HKEX 'Disclosure of Interests' website (http://www.hkexnews.hk) and the company's website (http://www.hbyc.com.cn)[60](index=60&type=chunk) - The 2025 interim report, containing all information required by the Listing Rules, will be published on the company's website and the HKEX website[60] - As of the announcement date, the Board members include Executive Directors Zhang Haijun, Wu Jinyu, Zhang Lihuan, Zhang Chao, and Ma Xuehui; Non-executive Director Zheng Zhixing; and Independent Non-executive Directors Ye Qizhi, Wang Fuji, and Zhang Liguo[61]