百得利控股(06909) - 2025 - 中期业绩

Group Financial Summary This section provides a concise overview of the group's key financial performance and position for the first half of 2025 compared to 2024 | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 3,812.6 | 4,280.2 | -10.9% | | Passenger Vehicles Sold | 8,307 units | 9,141 units | -9.1% | | Revenue from Vehicle Sales | 3,158.8 | 3,673.7 | -14.0% | | Revenue from After-sales Services | 653.8 | 606.5 | +7.8% | | Net Profit | 11.6 | 47.5 | -75.6% | | Profit Attributable to Equity Holders of the Company | 7.1 | 33.9 | -79.1% | | Net Profit Margin | 0.3% | 1.1% | -0.8pp | | Net Cash Inflow from Operating Activities | 309.4 | 379.8 | -18.6% | | Cash and Cash Equivalents | 909.9 (as of June 30, 2025) | 899.4 (as of December 31, 2024) | +1.2% | Interim Results Overview The Board of Directors announced the unaudited consolidated interim results for the six months ended June 30, 2025, which have been reviewed by the audit committee - The Board of Directors announced the unaudited consolidated interim results for the six months ended June 30, 2025, which have been reviewed by the audit committee[4] Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income This section presents the consolidated financial performance, including revenue, profit, and comprehensive income, for the six months ended June 30, 2025 and 2024 Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 3,812,566 | 4,280,157 | -10.9% | | Cost of Sales | (3,799,606) | (4,076,484) | -6.8% | | Gross Profit | 12,960 | 203,673 | -93.6% | | Other Income | 363,583 | 259,900 | +39.9% | | Selling and Distribution Expenses | (228,278) | (289,988) | -21.3% | | Administrative Expenses | (105,290) | (88,932) | +18.4% | | Operating Profit | 42,975 | 84,653 | -49.2% | | Finance Costs | (29,809) | (16,349) | +82.3% | | Profit Before Tax | 13,166 | 68,304 | -80.7% | | Income Tax Expense | (1,539) | (20,802) | -92.6% | | Profit for the Period | 11,627 | 47,502 | -75.5% | | Profit Attributable to Equity Holders of the Company | 7,132 | 33,878 | -79.0% | | Basic and Diluted Earnings Per Share (RMB) | 0.01 | 0.05 | -80.0% | | Total Comprehensive Income for the Period | 10,564 | 46,795 | -77.4% | Interim Condensed Consolidated Statement of Financial Position This section details the group's assets, liabilities, and equity as of June 30, 2025, and December 31, 2024 Interim Condensed Consolidated Statement of Financial Position (As of June 30) | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current Assets | | | | | Property, Plant and Equipment | 566,867 | 415,952 | +36.3% | | Investment Properties | 338,114 | 54,898 | +516.0% | | Right-of-use Assets | 769,078 | 335,380 | +129.3% | | Intangible Assets | 791,380 | 810,557 | -2.4% | | Goodwill | 367,944 | 367,944 | 0.0% | | Deferred Tax Assets | 35,227 | 23,246 | +51.5% | | Long-term Prepayments | 89,900 | 386,175 | -76.7% | | Total Non-current Assets | 2,958,510 | 2,394,152 | +23.6% | | Current Assets | | | | | Inventories | 694,481 | 829,099 | -16.3% | | Trade Receivables | 129,400 | 77,317 | +67.4% | | Prepayments, Other Receivables and Other Assets | 657,577 | 647,903 | +1.5% | | Pledged Bank Deposits | 377,874 | 430,170 | -12.2% | | Cash and Cash Equivalents | 508,548 | 450,605 | +12.8% | | Total Current Assets | 2,405,286 | 2,469,688 | -2.6% | | Current Liabilities | | | | | Trade Payables and Bills Payable | 842,354 | 882,144 | -4.5% | | Interest-bearing Bank and Other Borrowings | 497,866 | 438,445 | +13.5% | | Total Current Liabilities | 1,761,436 | 1,577,808 | +11.6% | | Non-current Liabilities | | | | | Interest-bearing Bank and Other Borrowings | 350,000 | — | N/A | | Total Non-current Liabilities | 868,670 | 547,022 | +58.8% | | Total Equity | 2,733,690 | 2,739,010 | -0.2% | Notes to the Unaudited Interim Financial Statements This section provides detailed explanations and disclosures for the figures presented in the interim financial statements 1. General Information The Company, incorporated in the Cayman Islands, primarily operates 4S dealership businesses in China and was listed on the HKEX main board on July 15, 2021 - The Company was incorporated as an exempted company in the Cayman Islands on May 18, 2018[10] - The Group is principally engaged in 4S dealership businesses in the People's Republic of China[11] - The Company's shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on July 15, 2021[12] 2. Basis of Preparation The interim consolidated financial statements are prepared in accordance with IFRS, presented in RMB, and measured using the historical cost convention, requiring management judgments and estimates - The interim condensed consolidated financial statements have been prepared in accordance with all applicable accounting standards of International Financial Reporting Standards[13] - The financial statements are presented in RMB, the Group's presentation currency, and have been rounded to the nearest thousand[14] - The financial statements have been prepared on the historical cost basis, except for certain assets that are stated at fair value[15] 3. Application of Amendments to International Financial Reporting Standards Amendments to IAS 21 "Lack of Exchangeability" were first applied during the period, but had no significant impact on the Group's financial performance or position - The Group has first applied the amendments to IAS 21 "Lack of Exchangeability" issued by the International Accounting Standards Board[16][17] - The application of these amendments did not have a significant impact on the Group's financial performance and position for the current and prior periods[17] 4. Revenue and Segment Reporting The Group primarily engages in passenger vehicle sales and after-sales services, reporting a single operating segment in China, with vehicle sales revenue decreasing and after-sales service revenue increasing - The Group is principally engaged in the sale of passenger vehicles and provision of after-sales services, operating a single reportable operating segment, which is the sale of passenger vehicles and provision of related services in China[18] Revenue Disaggregated by Major Product or Service Line (For the six months ended June 30) | Revenue Source | 2025 (RMB thousand) | 2024 (RMB thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Sale of Passenger Vehicles | 3,158,820 | 3,673,665 | -14.0% | | Provision of After-sales Services | 653,746 | 606,492 | +7.8% | | Total | 3,812,566 | 4,280,157 | -10.9% | - All revenue is derived from mainland China and recognized at a point in time[19] 5. Other Income Other income increased by 39.9% year-on-year to RMB 363.6 million, primarily driven by a significant rise in commission income Other Income Components (For the six months ended June 30) | Income Source | 2025 (RMB thousand) | 2024 (RMB thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Interest income | 2,320 | 6,143 | -62.3% | | Commission income | 312,256 | 214,434 | +45.6% | | Rental income | 273 | 305 | -10.5% | | Government grants | 139 | 1,483 | -90.6% | | Gain on disposal of items of property, plant and equipment | 7,905 | 11,531 | -31.4% | | Others | 40,690 | 26,004 | +56.5% | | Total | 363,583 | 259,900 | +39.9% | 6. Profit Before Tax Profit before tax significantly decreased by 80.7% to RMB 13.2 million, mainly due to a substantial increase in finance costs and higher staff costs Finance Costs (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Interest on bank and other borrowings | 21,167 | 5,681 | +272.6% | | Interest on lease liabilities | 8,404 | 10,309 | -18.5% | | Interest on sale and leaseback liabilities | 238 | 359 | -33.7% | | Total | 29,809 | **16,349 | +82.3% | Staff Costs (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Salaries, wages and other benefits | 144,038 | 132,576 | +8.6% | | Contributions to defined contribution retirement plans | 19,108 | 16,993 | +12.4% | | Equity-settled share-based payment transactions | 1,101 | (6,317) | N/A | | Total | 164,247 | 143,252 | +14.7% | Other Items (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Cost of inventories | 3,761,486 | 4,017,800 | -6.4% | | Depreciation — owned property, plant and equipment | 42,687 | 48,980 | -12.8% | | Depreciation — right-of-use assets | 37,481 | 34,917 | +7.3% | | Amortisation of intangible assets | 19,177 | 19,717 | -2.7% | | Operating lease charges | 3,472 | 720 | +382.2% | | Auditor's remuneration — other services | 1,500 | — | N/A | 7. Income Tax Income tax expense decreased significantly by 92.8% year-on-year to RMB 1.5 million, primarily due to reduced taxable profit, with varying corporate income tax rates applied to Chinese subsidiaries Income Tax Expense (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Current tax: Provision for PRC income tax for the period | 17,808 | 21,812 | -18.4% | | Deferred tax: Origination and reversal of temporary differences | (16,269) | (1,010) | +1510.8% | | Total | 1,539 | 20,802 | -92.6% | - The Company, incorporated in the Cayman Islands, is not subject to income tax; Hong Kong subsidiaries had no taxable profit during the period, thus no provision for Hong Kong profits tax was made[24] - PRC subsidiaries are subject to a corporate income tax rate of 25%, except for Chengdu Jinbao, Chengdu Xinbao, and Hainan Liya, which enjoy a preferential tax rate of 15%, and two subsidiaries in Harbin and Xiamen, which enjoy a preferential tax rate of 5%[25][30] 8. Dividends The Board recommended no interim dividend for the six months ended June 30, 2025, compared to RMB 0.03 per ordinary share in the prior period - No interim dividend was proposed after the end of the reporting period for the six months ended June 30, 2025 (for the six months ended June 30, 2024: RMB 0.03 per ordinary share)[28] - A final dividend of RMB 0.02 per ordinary share for the previous financial year was approved in the next interim period (for the six months ended June 30, 2024: RMB 0.03 per ordinary share)[28] 9. Earnings Per Share Basic earnings per share for the six months ended June 30, 2025, was RMB 0.01, a significant decrease from RMB 0.05 in the prior period - Basic earnings per share for the six months ended June 30, 2025, was RMB 0.01 (2024: RMB 0.05)[5][28] - Basic earnings per share is calculated based on the profit attributable to equity holders of the Company of RMB 7,132,000 and the weighted average number of ordinary shares in issue of 611,524,729 shares[28] - No adjustment has been made to the basic earnings per share amount for dilution as the outstanding share options had an anti-dilutive effect on the basic earnings per share amount presented[29] 10. Intangible Assets As of June 30, 2025, the net book value of intangible assets was RMB 791.4 million, primarily comprising motor vehicle dealership rights, with amortization expense of RMB 19.2 million for the period Net Book Value of Intangible Assets (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Office software | 23,195 | 25,734 | | Motor vehicle dealership rights | 768,185 | 784,823 | | Total | 791,380 | 810,557 | - Motor vehicle dealership rights have an estimated useful life of 30 years, with fair value determined using the multi-period excess earnings method at each acquisition date[31] - Intangible assets of approximately RMB 27.2 million were written off due to the closure of a Jaguar-Land Rover retail store in the Foshan area[33] 11. Goodwill As of June 30, 2025, the carrying amount of goodwill remained stable at RMB 367.9 million, with RMB 10.7 million written off last year due to the closure of a Jaguar-Land Rover retail store in Foshan - The carrying amount of goodwill was RMB 367,944 thousand as of June 30, 2025, and December 31, 2024[34] - Goodwill of approximately RMB 10.7 million was written off last year due to the closure of a Jaguar-Land Rover retail store in the Foshan area[33][34] 12. Inventories Total inventories as of June 30, 2025, decreased by 16.2% to RMB 694.5 million, with portions pledged as collateral for bank loans and bills payable Inventory Components (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Motor vehicles | 655,622 | 783,766 | -16.4% | | Parts and accessories | 65,726 | 73,737 | -10.9% | | Less: Provision for inventories | (26,867) | (28,404) | -5.4% | | Total | 694,481 | 829,099 | -16.3% | - As of June 30, 2025, inventories with a carrying amount of RMB 130,733 thousand were pledged as collateral for bank and other borrowings[35] - As of June 30, 2025, inventories with a carrying amount of RMB 236,179 thousand were pledged as collateral for bills payable[35] 13. Trade Receivables Total trade receivables as of June 30, 2025, significantly increased by 67.4% to RMB 129.4 million, with all expected to be recovered within one year and no significant impairment provision recognized Ageing Analysis of Trade Receivables (As of June 30) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Within 3 months | 103,055 | 76,810 | +34.2% | | 3 to 6 months | 9,671 | 247 | +3815.0% | | 6 months to 1 year | 16,674 | 260 | +6313.1% | | Total | 129,400 | 77,317 | +67.4% | - All trade receivables are expected to be recovered within one year, and management continuously monitors credit risk[36] - No significant impairment provision for trade receivables was recognized as of June 30, 2025, and December 31, 2024[36] 14. Prepayments, Other Receivables and Other Assets The current portion of prepayments, other receivables, and other assets was RMB 657.6 million as of June 30, 2025, including RMB 579.0 million paid for the acquisition of a claim from Inner Mongolia Commercial Bank, which is not yet fully completed Components of Prepayments, Other Receivables and Other Assets (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Prepayments | 172,194 | 157,037 | +9.7% | | Prepayments for acquisition of claims | 89,721 | 385,996 | -76.7% | | Other receivables | 240,554 | 174,700 | +37.7% | | Rebates receivable | 233,746 | 291,125 | -19.7% | | Recoverable VAT | 26,502 | 40,460 | -34.5% | | Total | 762,717 | 1,049,318 | -27.3% | | Less: Long-term prepayments | (89,900) | (386,175) | -76.7% | | Impairment provision for other receivables | (15,240) | (15,240) | 0.0% | | Current portion | 657,577 | 647,903 | +1.5% | - The Group entered into a claim transfer agreement with Inner Mongolia Commercial Bank, having paid the remaining consideration of approximately RMB 579.0 million, with the transaction not fully completed before June 30, 2025[38] 15. Trade Payables and Bills Payable Total trade payables and bills payable decreased by 4.5% to RMB 842.4 million as of June 30, 2025, with bills payable secured by inventories and pledged bank deposits Components of Trade Payables and Bills Payable (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade payables | 109,146 | 88,291 | +23.6% | | Bills payable | 733,208 | 793,853 | -7.6% | | Total | 842,354 | 882,144 | -4.5% | - Bills payable are secured by inventories with a carrying amount of RMB 236,179 thousand and pledged bank deposits of RMB 377,874 thousand[39] 16. Acquisition of a Subsidiary The Group acquired a claim from Inner Mongolia Commercial Bank for approximately RMB 965.0 million to obtain collateral, including equity in Aurora Real Estate, business of Aurora Star, and two properties in Beijing, treated as an acquisition of assets and liabilities - The Group entered into a claim transfer agreement with Inner Mongolia Commercial Bank to acquire claims for a cash consideration of approximately RMB 965.0 million, aiming to acquire assets pledged as collateral[40] - The collateral includes equity in Beijing Aurora Real Estate Development Co., Ltd., the business of Beijing Aurora Star Automobile Sales and Service Co., Ltd., and two properties located in Beijing[40] - The transfer of equity in Aurora Real Estate is treated as an acquisition of assets and liabilities, not a business combination, with total assets and liabilities of RMB 875,269 thousand at the acquisition date[40][42] Management Discussion and Analysis This section provides an overview of the Group's operational performance, financial position, and key business developments during the reporting period 1. Business Review The Company is a luxury and ultra-luxury automotive dealership service provider in China, operating 17 4S stores and one showroom across eight provinces and cities, offering comprehensive automotive products and after-sales services - The Group is an automotive dealership service provider in China, focusing on luxury and ultra-luxury brands, operating 17 4S dealership stores and one showroom across eight provinces and cities in China[44][45] - It offers a full range of automotive-related products and services, including sales of imported and domestic vehicles, after-sales services, insurance agency, vehicle registration, auto financing, and used car services[47] - The Group implements standardized central management and builds an intelligent business platform to enhance operational efficiency, optimize customer experience, and establish differentiated competitive barriers[47] Key Operating Data (For the six months ended June 30) | Metric | H1 2025 | H1 2024 | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Passenger Vehicles Sold | 8,307 units | 9,141 units | -9.1% | | Revenue from Vehicle Sales | RMB 3,158.8 million | RMB 3,673.7 million | -14.0% | | Revenue from After-sales Services | RMB 653.8 million | RMB 606.5 million | +7.8% | | Proportion of Vehicle Sales Revenue to Total Revenue | 82.9% | 85.8% | -3.4% | | Proportion of After-sales Services Revenue to Total Revenue | 17.1% | 14.2% | +20.4% | 2. Financial Review The Group's revenue decreased by 10.9% to RMB 3,812.6 million, primarily due to lower vehicle sales and average selling prices, leading to a significant 93.6% drop in gross profit and a 75.6% decline in net profit 2.1 Revenue Revenue decreased by 10.9% to RMB 3,812.6 million, driven by a 14.0% decline in vehicle sales revenue due to lower sales volume and average selling price, while after-sales service revenue increased by 7.8% - Revenue decreased by approximately 10.9% from approximately RMB 4,280.2 million for the corresponding period in 2024 to approximately RMB 3,812.6 million for the period[51] - Revenue from vehicle sales decreased by 14.0% to approximately RMB 3,158.8 million, primarily due to a decline in new car sales volume (down 9.1%) and average selling price (down 5.4%)[51] - Revenue from after-sales services increased by 7.8% to approximately RMB 653.8 million, mainly due to an increase in business volume[51] 2.2 Cost of Sales Cost of sales decreased by 6.8% to RMB 3,799.6 million, primarily due to a decline in new vehicle sales volume - Cost of sales decreased by approximately 6.8% from approximately RMB 4,076.5 million for the corresponding period in 2024 to approximately RMB 3,799.6 million for the period, mainly due to a decline in new car sales volume[52] 2.3 Gross Profit and Gross Margin Gross profit decreased significantly by 93.6% to RMB 13.0 million, with the gross margin falling to 0.3%, mainly due to lower average selling prices and gross margins for passenger vehicles - Gross profit was approximately RMB 13.0 million, a decrease of approximately 93.6% compared to the corresponding period in 2024[53] - Gross profit margin decreased from approximately 4.8% for the corresponding period in 2024 to approximately 0.3% for the period, primarily due to a decrease in the average selling price and gross profit margin of passenger vehicles[53] 2.4 Other Income Other income increased by 39.9% to RMB 363.6 million, primarily attributable to higher commission income from other value-added automotive services - Other income increased by approximately 39.9% from approximately RMB 259.9 million for the corresponding period in 2024 to approximately RMB 363.6 million for the period, mainly due to an increase in commission income from other value-added automotive services[54] 2.5 Selling and Distribution Expenses Selling and distribution expenses decreased by 21.3% to RMB 228.3 million, mainly due to reduced promotional expenses for vehicle sales - Selling and distribution expenses decreased by approximately 21.3% from approximately RMB 290.0 million for the corresponding period in 2024 to approximately RMB 228.3 million for the period, mainly due to a reduction in promotional expenses for vehicle sales[55] 2.6 Administrative Expenses Administrative expenses increased by 18.4% to RMB 105.3 million, primarily due to higher staff costs and increased depreciation and amortization expenses - Administrative expenses increased by approximately 18.4% from approximately RMB 88.9 million for the corresponding period in 2024 to approximately RMB 105.3 million for the period, mainly due to an increase in staff costs and depreciation and amortization expenses[56] 2.7 Finance Costs Finance costs increased by 82.8% to RMB 29.8 million, mainly driven by an increase in bank and other borrowings - Finance costs increased by approximately 82.8% from approximately RMB 16.3 million for the corresponding period in 2024 to approximately RMB 29.8 million for the period, mainly due to an increase in bank and other borrowings[57] 2.8 Profit Before Tax Profit before tax decreased significantly by 80.7% to RMB 13.2 million - Profit before tax decreased by approximately 80.7% from approximately RMB 68.3 million for the corresponding period in 2024 to approximately RMB 13.2 million for the period[58] 2.9 Income Tax Expense Income tax expense decreased by 92.8% to RMB 1.5 million, primarily due to a reduction in taxable profit - Income tax expense decreased by approximately 92.8% from approximately RMB 20.8 million incurred for the corresponding period in 2024 to approximately RMB 1.5 million incurred for the period, mainly due to a reduction in taxable profit[59] 2.10 Profit for the Period Profit for the period decreased by 75.6% to RMB 11.6 million, resulting in a net profit margin of 0.3% compared to 1.1% in the prior period - Profit for the period decreased by approximately 75.6% from approximately RMB 47.5 million for the corresponding period in 2024 to approximately RMB 11.6 million for the period[60] - The net profit margin for the period was approximately 0.3%, compared to approximately 1.1% for the corresponding period in 2024[60] 2.11 Profit Attributable to Equity Holders of the Company Profit attributable to equity holders of the Company decreased by 79.1% to RMB 7.1 million - Profit attributable to equity holders of the Company decreased by approximately 79.1% from approximately RMB 33.9 million for the corresponding period in 2024 to approximately RMB 7.1 million for the period[61] 2.12 Inventory Turnover Days Inventory balance decreased by 16.2% to RMB 694.5 million, with average inventory turnover days increasing slightly to 36.3 days - The inventory balance decreased by approximately 16.2% from approximately RMB 829.1 million as of December 31, 2024, to approximately RMB 694.5 million as of June 30, 2025[62] - As of June 30, 2025, the average inventory turnover days were approximately 36.3 days (December 31, 2024: approximately 35.2 days)[62] 3. Liquidity and Financial Resources The Group maintains a prudent treasury policy and sound liquidity, with total equity slightly decreasing, interest-bearing bank and other borrowings significantly increasing by 93.4% to RMB 847.9 million, and a debt-to-equity ratio rising to 31.0% - The Group's primary sources of working capital include cash inflows from operating activities and bank borrowings, maintaining a prudent treasury policy and sound liquidity[63] - As of June 30, 2025, the Group's total equity was approximately RMB 2,733.7 million (December 31, 2024: approximately RMB 2,739.0 million)[63] - Interest-bearing bank and other borrowings amounted to RMB 847.9 million, an increase of approximately 93.4% compared to December 31, 2024, mainly due to increased loans to pay for the claim transfer from Inner Mongolia Commercial Bank[64] - The debt-to-equity ratio was approximately 31.0% (December 31, 2024: approximately 16.0%)[64] - Net cash inflow from operating activities was approximately RMB 309.4 million (H1 2024: RMB 379.8 million)[64] 4. Capital Commitments As of June 30, 2025, capital commitments were approximately RMB 4.0 million, primarily for property, plant and equipment, intangible assets, and business acquisitions, with no large capital commitments for future expansion - The Group's capital commitments were approximately RMB 4.0 million (December 31, 2024: approximately RMB 2.5 million)[66] - Capital commitments primarily include expenditures for property, plant and equipment, intangible assets, and business acquisitions[66] - The Group plans to further expand its dealership network and prefers to maintain flexibility throughout the expansion process, without making any large capital commitments for its expansion[67] 5. Significant Acquisitions and Disposals of Subsidiaries The Group acquired a subsidiary during the period, as detailed in Note 16 to the financial statements, with no other significant acquisitions or disposals - During the period, the Group acquired a subsidiary, details of which are disclosed in Note 16 to the financial statements in this announcement[68] - Save as disclosed above, the Group had no other significant acquisitions or disposals of subsidiaries during the period[68] 6. Capital Expenditure and Investments Total capital expenditure for the six months ended June 30, 2025, was approximately RMB 699.7 million, a significant increase from the prior period, primarily for property, plant and equipment and business acquisitions - For the six months ended June 30, 2025, the Group's total capital expenditure was approximately RMB 699.7 million (for the six months ended June 30, 2024: approximately RMB 54.6 million)[69] - Capital expenditure primarily includes expenditures for property, plant and equipment and business acquisitions[69] - Save as disclosed above, the Group made no other significant investments for the six months ended June 30, 2025[69] 7. 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 (December 31, 2024: Nil)[70] 8. Pledged Group Assets The Group pledged certain assets, including inventories, deposits, and properties, as collateral for bills payable and interest-bearing bank borrowings to fund daily business operations - The Group pledged its group assets as collateral for bills payable and interest-bearing bank and other borrowings to fund its daily business operations[71] Total Carrying Amount of Pledged Assets (As of June 30) | Item | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Inventories | 366.9 | 348.8 | | Deposits | 377.9 | 430.2 | | Properties | 161.8 | — | 9. Human Resources As of June 30, 2025, the Group had 1,756 employees, an increase from December 31, 2024, with remuneration comprising basic salaries, discretionary bonuses, social insurance contributions, and share-based incentives - As of June 30, 2025, the Group had 1,756 employees (December 31, 2024: 1,450 employees)[72] - Remuneration for existing employees includes basic salaries, discretionary bonuses, social insurance contributions, and share-based incentives[72] Other Information This section presents additional disclosures regarding post-balance sheet events, securities transactions, investments, corporate governance, and publication details 1. Post Balance Sheet Events The acquisition of a subsidiary under the claim transfer agreement and asset-for-debt agreement was completed on August 4, 2025 - The transaction for the acquisition of a subsidiary under the claim transfer agreement and the asset-for-debt agreement was completed on August 4, 2025[73] 2. Purchase, Sale or Redemption of the Company's Listed Securities Neither the Company nor its subsidiaries purchased, redeemed, or sold any of the Company's listed securities during the period, and no treasury shares were held as of June 30, 2025 - During the period, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities[74] - As of June 30, 2025, the Company did not hold any treasury shares[74] 3. Material Investments Held The Group held no material investments in the equity of any company during the period - The Group held no material investments in the equity of any company during the period[75] 4. Significant Acquisitions and Disposals of Subsidiaries and Associates The Group acquired a subsidiary during the period, as detailed in Note 16 to the financial statements, with no other significant acquisitions or disposals of subsidiaries and associates - During the period, the Group acquired a subsidiary, details of which are disclosed in Note 16 to the financial statements in this announcement[76] - Save as disclosed above, the Group had no other significant acquisitions or disposals of subsidiaries and associates during the period[77] 5. Corporate Governance Code The Company complied with all code provisions of the Corporate Governance Code set out in Appendix C1 to the HKEX Listing Rules during the period - During the period, the Company complied with all code provisions of the Corporate Governance Code set out in Appendix C1 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[78] 6. Standard Code for Securities Transactions by Directors The Company adopted and confirmed compliance by all directors with the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules[79] - Following specific enquiries made to all Directors, the Company confirmed that each of them has complied with the required standards set out in the Standard Code throughout the period[79] 7. Audit Committee The Audit Committee, comprising three independent non-executive directors, advises on external auditor appointments and oversees financial reporting, internal controls, risk management, and corporate governance, having reviewed the unaudited interim financial results - The Audit Committee comprises three members, namely Mr. Lu Shidong, Mr. Liu Dengqing, and Dr. Chu Fumin, with Mr. Lu Shidong serving as the Chairman of the Audit Committee[80] - The primary duties of the Audit Committee are to advise the Board on the appointment and removal of external auditors and to assist the Board in fulfilling its oversight responsibilities related to the Group's financial reporting, internal control structure, risk management process, external audit function, and corporate governance responsibilities[80] - The Audit Committee held a meeting on August 26, 2025, and reviewed the unaudited interim financial results for the six months ended June 30, 2025[80] 8. Interim Dividends The Board recommended no interim dividend for the six months ended June 30, 2025 - The Board recommended no interim dividend for the six months ended June 30, 2025 (for the six months ended June 30, 2024: RMB 0.03 per ordinary share)[81] 9. Public Float The Company maintained the prescribed public float under the Listing Rules throughout the period and up to the date of the announcement - During the period and as of the date of this announcement, the Company maintained the public float as prescribed by the Listing Rules[82] 10. Publication of Interim Results Announcement and Interim Report The interim results announcement is available on the HKEX and Company websites, and the interim report will be published and dispatched to shareholders in due course - This interim results announcement is available on the HKEX website www.hkexnews.hk and the Company's website www.blchina.com[83](index=83&type=chunk)[84] - The Company's interim report for the period, containing all information required by the Listing Rules, will be published on the aforementioned websites and dispatched to shareholders who have indicated their wish to receive printed copies in due course[83]