晶科电子股份(02551) - 2025 - 中期业绩

Company Information This section details the composition of the company's board of directors, supervisory board, and various committees, including executive, non-executive, independent non-executive directors, and supervisors, along with their terms and positions Board of Directors and Committees This section lists the members of the company's Board of Directors, Supervisory Board, and various committees, including executive, non-executive, independent non-executive directors, and supervisors, noting their terms and roles - Board members include Executive Directors Mr. Xiao Guowei (Chairman and Chief Strategy Officer) and Mr. Hou Yu (President), as well as several Non-executive Directors and Independent Non-executive Directors[5] - The lists of members for the Strategy Committee, Audit Committee, Remuneration and Appraisal Committee, and Nomination Committee are also provided, with Ms. Zhang He serving as the Chair of the Audit Committee[5] Professional Advisors and Contact Information This section provides detailed contact and basic information for the company, including joint company secretaries, authorized representatives, auditors, compliance advisors, legal advisors (Hong Kong and China), registered office, principal place of business in Hong Kong, H share registrar, company website, stock code, listing date, and principal bankers - The company's auditor is Ernst & Young, and the compliance advisor is Max Times Capital Limited[5] - The company was listed on the Hong Kong Stock Exchange on November 8, 2024, with stock code 2551[7] - The registered office, headquarters, and principal place of business in China are located at No. 33 Huanshi Avenue South, Nansha District, Guangzhou, Guangdong Province, China[7] Management Discussion and Analysis This section provides an overview of the Group's business performance, industry conditions, and future development strategies for the first half of 2025 Business Review This section outlines the Group's business performance, industry conditions, and future development strategies for the first half of 2025, focusing on smart visual products and system solutions with "LED+" technology - The company is a provider of smart visual products and system solutions, with "LED+" as its core technology, covering automotive smart vision, high-end lighting, and new display businesses[9] - In the first half of 2025, the Chinese automotive industry faced a period of deep adjustment, with price wars extending to the supply chain, putting pressure on component manufacturers like automotive lighting suppliers[10] - The new display market is driven by innovative technologies such as Mini LED and local dimming, with Mini LED TV sales penetration increasing from 16% in the same period last year to over 40% during the "618" sales event[12] 2025 First Half Key Financial Performance | Metric | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,113,000 | 1,071,000 | +3.9% | | Net Profit | 11,232 | 49,779 | -77.4% | - Net profit decreased primarily due to reduced profits in the smart automotive lighting business segment (driven by intensified competition in the automotive industry leading to lower average selling prices) and increased strategic investments in the construction of Guangzhou Lingwei Vision Greater Bay Area headquarters and R&D base[14] The Company's Industry This section outlines the company's industry of smart visual products and system solutions, highlighting its "LED+" core technology, and analyzing the current status and development opportunities in automotive smart vision, high-end lighting, and new display markets - The company has successfully transformed from a traditional LED manufacturer into a provider of smart visual products and systems, leveraging "LED+" technology to penetrate high-value and high-growth markets[9] - LED smart headlights, with their energy efficiency, long lifespan, and safety features like ADB, have seen rapid annual penetration growth and are evolving from single lighting components into core carriers for sensing, decision-making, and interaction[10] - The high-end lighting and new display markets benefit from advancements in LED chip technology, environmental policies, and increasing consumer demand for high-contrast, high-resolution display products[11][12] Business Review and Outlook During the reporting period, the Group's operating revenue increased by 3.9% year-on-year to RMB 1.113 billion, but net profit decreased by 77.4% year-on-year to RMB 11.232 million, mainly due to reduced profits in the automotive smart vision lighting business and increased strategic investments 2025 First Half Business Segment Revenue and Year-on-year Change | Business Segment | 2025 H1 Revenue (RMB 100 million) | Year-on-year Change | | :--- | :--- | :--- | | Automotive Smart Vision | 4.19 | -9.3% | | New Display | 3.54 | +30.3% | | High-end Lighting | 3.40 | +0.6% | - The decline in automotive smart vision business revenue was primarily due to intensified competition in the automotive industry leading to lower average selling prices for complete lighting units, but sales of automotive-grade devices and modules significantly increased and are expected to enter a rapid growth phase[17] - New display business revenue grew significantly by 30.3%, mainly driven by large-size TV backlight modules and Mini LED display technology applications, as well as national home appliance subsidy policies[18] - The Group has completed its full industry chain patent strategic layout, having obtained 446 authorized patents as of the end of the reporting period, including 125 invention patents[19] Future Key R&D Directions The company's future R&D will focus on smart visual products and systems, including automotive smart visual products, high-end lighting products, and new display products - Key R&D areas for automotive smart visual products include ten-thousand-pixel high-definition (HD) smart projection headlight systems, platform-based headlight ADB lens modules, and AR-HUD systems with large-screen TFTs featuring Local Dimming[22] - New display product R&D will focus on Mini LED new display backlight products and application solutions for large-size display panels, MicroLED technology for artificial intelligence (AI) display applications, and AR+AI glasses display modules[22] Operations Management The Group will comprehensively promote the application of Artificial Intelligence (AI) in product technology R&D, manufacturing, and operations management to strengthen intelligent manufacturing capabilities, optimize production processes, improve product yield, and build an intelligent cluster platform in the automotive smart vision field - Comprehensively promote the application of AI in R&D, production, and operations management to strengthen intelligent manufacturing capabilities, optimize production processes, and improve product yield[21] - Utilize AI technology to build an intelligent cluster platform in the automotive smart vision field, covering the entire product lifecycle from R&D to production and quality inspection by integrating multiple business-specific intelligent agents[21] Financial Review This section provides a detailed analysis of the Group's financial performance for the first half of 2025, including revenue structure, balance sheet, liquidity, capital structure, contingent liabilities, foreign exchange risk, capital expenditures, and significant investments 2025 First Half Total Revenue and Year-on-year Change | Metric | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Total Revenue | 1,112.6 | 1,070.9 | +3.9% | - Revenue growth primarily driven by increased revenue from the new display segment[24] Revenue Structure During the reporting period, the Group's total revenue was RMB 1,112.6 million, a 3.9% year-on-year increase, with significant growth in new display products and a decline in automotive smart vision products 2025 First Half Revenue by Product | Item | 2025 Revenue (RMB thousand) | Revenue Share (%) | 2024 Revenue (RMB thousand) | Revenue Share (%) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Automotive Smart Vision | 418,533 | 37.6% | 461,265 | 43.1% | (9.3)% | | New Display | 354,444 | 31.9% | 272,003 | 25.4% | 30.3% | | High-end Lighting | 339,643 | 30.5% | 337,628 | 31.5% | 0.6% | | Total | 1,112,620 | 100.0% | 1,070,896 | 100.0% | 3.9% | 2025 First Half Revenue by Place of Product Delivery | Item | 2025 Revenue (RMB thousand) | Revenue Share (%) | 2024 Revenue (RMB thousand) | Revenue Share (%) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Mainland China | 893,694 | 80.3% | 882,574 | 82.4% | 1.3% | | Overseas | 218,926 | 19.7% | 188,322 | 17.6% | 16.3% | | Total | 1,112,620 | 100.0% | 1,070,896 | 100.0% | 3.9% | Financial Position As of June 30, 2025, the Group's total assets were RMB 2,940.4 million, a 5.2% decrease from the end of 2024, with non-current liabilities significantly increasing due to deferred government grants 2025 June 30 Financial Position Overview | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 2,940.4 | 3,101.5 | -5.2% | | Non-current Assets | 1,074.7 | 1,060.0 | +1.4% | | Current Assets | 1,865.7 | 2,041.5 | -8.6% | | Total Liabilities | 1,667.7 | 1,806.7 | -7.7% | | Non-current Liabilities | 246.1 | 38.3 | +542.6% | | Current Liabilities | 1,421.6 | 1,768.4 | -19.6% | - Non-current liabilities significantly increased by 542.6%, primarily due to the recognition of a RMB 200 million government grant as deferred income by subsidiary Lingwei Vision[29] Liquidity and Financial Resources During the reporting period, the Group's net cash inflow from operating activities was RMB 4.0 million, a significant 94.2% year-on-year decrease, primarily due to payments for prior period procurement and increased R&D investment 2025 First Half Cash Flow from Operating Activities | Metric | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Net Cash Inflow from Operations | 4.0 | 69.2 | -94.2% | - The significant decrease in net cash inflow from operations was mainly due to payments for accounts payable related to a surge in orders in the second half of 2024, and increased R&D investment to maintain technological advantages[31] - As of June 30, 2025, bank and cash balances were approximately RMB 544.0 million, and total interest-bearing bank borrowings were approximately RMB 190.1 million, indicating sufficient liquidity[32][33] Capital Structure As of June 30, 2025, the Group's net debt-to-equity ratio was 14.9% and its asset-liability ratio was 56.7%, maintaining financial stability 2025 June 30 Capital Structure Metrics | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net Debt-to-Equity Ratio | 14.9% | Not applicable | | Asset-Liability Ratio | 56.7% | 58.3% | - The Group monitors its capital structure using the asset-liability ratio and maintains financial stability to support continuous healthy business development[34] Contingent Liabilities As of June 30, 2025, the Group had no contingent liabilities - As of June 30, 2025, the Group had no contingent liabilities[35] Foreign Exchange Risk The Group's operations are primarily in Mainland China, with most assets and liabilities denominated in RMB, and it currently does not have a foreign currency hedging policy - The Group's business is primarily concentrated in Mainland China, with most assets and liabilities denominated in RMB, and it does not face significant foreign exchange risk[36] - Currently, no foreign currency hedging policy is adopted for foreign currency transactions, assets, and liabilities, but the Group believes it has sufficient foreign currency to meet its foreign exchange needs[36] Capital Expenditures During the reporting period, the Group's capital expenditures amounted to RMB 99.2 million, primarily for capacity expansion and equipment upgrades, funded by internal resources, bank borrowings, and operating cash inflows 2025 First Half Capital Expenditures | Metric | Amount (RMB million) | | :--- | :--- | | Capital Expenditures | 99.2 | - Capital expenditures were mainly for capacity expansion and equipment upgrades to improve efficiency[37] Capital Commitments As of June 30, 2025, total contracted but unexpended capital commitments amounted to RMB 346.7 million, primarily for the construction of Guangzhou Lingwei 2025 June 30 Capital Commitments | Item | Amount (RMB million) | | :--- | :--- | | Total contracted but unexpended capital expenditures | 346.7 | - Primarily related to the construction investment of Guangzhou Lingwei[38] Pledged Assets As of June 30, 2025, the Group had pledged assets with a total carrying value of RMB 431.8 million for bank financing, including pledged bank deposits, trade receivables and bills, property, plant and equipment, and right-of-use assets 2025 June 30 Pledged Assets | Asset Category | Amount (RMB million) | | :--- | :--- | | Pledged and restricted bank deposits | 99.4 | | Trade receivables and bills receivable | 40.7 | | Property, plant and equipment | 235.8 | | Restricted right-of-use assets | 55.9 | | Total | 431.8 | Significant Investments Held As of June 30, 2025, the Group had not made or held any significant investments - As of June 30, 2025, the Group had not made or held any significant investments[40] Future Plans for Material Investments and Capital Assets As of the date of this interim report, the Group has no future plans for material external investments and capital assets - As of the date of this interim report, the Group has no future plans for material external investments and capital assets[41] Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures During the reporting period, the Group had no 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, or joint ventures[42] Employees and Remuneration Policy As of June 30, 2025, the Group had 2,345 employees, with staff costs of approximately RMB 194,264 thousand, a 15.3% year-on-year increase Employee and Remuneration Overview | Metric | June 30, 2025 | December 31, 2024 | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Total Employees | 2,345 people | 2,459 people | Not applicable | Not applicable | | Staff Costs | Not applicable | Not applicable | 194,264 | 168,519 | - Staff costs increased by 15.3% year-on-year, and the company provides competitive remuneration packages, including basic salaries, performance bonuses, and contributions to statutory employee benefit plans[43][44] - The company attracts talent through campus recruitment, internal and external referrals, and headhunters, and provides internal and external training to maintain and enhance employees' knowledge and skills[43][44] Financial Policy The Group has adopted a prudent financial management policy to ensure proper and effective recovery and allocation of funds, maintain sufficient liquidity, and closely monitor its liquidity position - Adopt a prudent financial management policy to ensure proper recovery and allocation of funds and prevent significant cash shortages[45] - Maintain sufficient liquidity to cover operating cash flows and administrative expenses, with the Board closely monitoring the liquidity position[45] Corporate Governance and Other Information This section covers the company's corporate governance practices, changes in directors and supervisors, compliance with securities trading standards, use of global offering proceeds, audit committee review, dividend policy, and interests of directors and major shareholders Corporate Governance Practices The company is committed to maintaining high standards of corporate governance, has adopted the Corporate Governance Code, and fully complied with all applicable code provisions during the reporting period - The company has adopted the Corporate Governance Code in Appendix C1 of the Listing Rules and fully complied with all applicable code provisions during the reporting period[47] Changes in Information of Directors, Chief Executives and Supervisors At the AGM on May 29, 2025, Mr. Xiao Guowei, Mr. Hou Yu, and others were elected as executive, non-executive, and independent non-executive directors for a three-year term - Mr. Xiao Guowei, Mr. Hou Yu, and others were elected as directors of the fourth session of the Board of Directors for a three-year term, effective from May 29, 2025[49] - Mr. Li Wenhong and Ms. Luo Xiaoyun were elected as non-employee representative supervisors of the fourth session of the Supervisory Board, and Mr. Ou Weineng was re-elected as an employee representative supervisor, both for a three-year term[49] - Mr. Hou Yu was re-elected as the President of the company on May 29, 2025[49] Compliance with the Model Code for Securities Transactions by Directors and Supervisors The company has adopted the Model Code for Securities Transactions by Directors and Supervisors, and all directors and supervisors confirmed compliance during the reporting period - The company has adopted the Model Code in Appendix C3 of the Listing Rules, and all directors and supervisors confirmed compliance during the reporting period[51] - The company's senior management and relevant employees are also subject to the Model Code, prohibiting securities transactions when in possession of inside information[52] Use of Proceeds from Global Offering The company received net proceeds of HKD 79.04 million from the global offering on November 8, 2024, with HKD 2.94 million utilized as of the reporting period end, mainly for technology innovation and working capital Use of Net Proceeds from Global Offering (As of June 30, 2025) | Use of Proceeds | Percentage of Total Net Proceeds | Net Proceeds Allocated (HKD million) | Utilized during Reporting Period (HKD million) | Unutilized during Reporting Period (HKD million) | | :--- | :--- | :--- | :--- | :--- | | Expansion of Automotive Smart Vision Production Capacity | 70% | 55.33 | 0 | 0 | | Technology Innovation and Product Upgrades | 20% | 15.81 | 1.54 | 14.27 | | Working Capital and General Corporate Purposes | 10% | 7.90 | 1.40 | 6.50 | | Total | 100% | 79.04 | 2.94 | 20.77 | - The expected timetable for utilizing the unutilized net proceeds is on or before December 31, 2025[54] Audit Committee The Audit Committee, composed of three independent non-executive directors with Ms. Zhang He as Chair, reviewed and approved the interim condensed consolidated financial statements and interim report for the six months ended June 30, 2025 - The Audit Committee is composed of three independent non-executive directors, with Ms. Zhang He as Chair, and Mr. Chen Zhiguang possesses the appropriate professional qualifications as required by Rule 3.10(2) of the Listing Rules[57] - The Committee reviewed and agreed with management on the interim condensed consolidated financial statements and interim report, and discussed accounting principles and practices[58] Dividends The Board of Directors has resolved not to recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board of Directors has resolved not to recommend the payment of an interim dividend for the six months ended June 30, 2025[59] Interests and Short Positions of Directors, Supervisors and Chief Executives in Shares, Underlying Shares and Debentures of the Company or its Associated Corporations As of June 30, 2025, directors and chief executives, including Mr. Xiao, Mr. Chen, Mr. Yuan, and Mr. Hou Yu, held long positions in the company's shares or underlying shares, with Mr. Xiao, Mr. Chen, Mr. Yuan, and their concert parties collectively holding a significant proportion of domestic unlisted shares and H shares Long Positions of Directors/Chief Executives in the Company's Shares (As of June 30, 2025) | Name of Director/Chief Executive | Capacity/Nature of Interest | Class of Shares | Number of Shares(1) | Approximate Percentage of Shareholding(1) (%) | | :--- | :--- | :--- | :--- | :--- | | Mr. Xiao | Interest held jointly with other parties | Domestic unlisted shares | 171,316,739 (L) | 31.89 | | | | H shares | 63,524,835 (L) | 11.83 | | Mr. Chen | Interest held jointly with other parties | Domestic unlisted shares | 171,316,739 (L) | 31.89 | | | | H shares | 63,524,835 (L) | 11.83 | | Mr. Yuan | Interest held jointly with other parties | Domestic unlisted shares | 171,316,739 (L) | 31.89 | | | | H shares | 63,524,835 (L) | 11.83 | | Mr. Hou Yu | Spouse's interest | Domestic unlisted shares | 3,500,000 (L) | 0.65 | | | | H shares | 1,500,000 (L) | 0.28 | - Mr. Xiao, Mr. Chen, Mr. Yuan, APTESS, and Giant Power Limited are parties acting in concert regarding their equity interests in Microcrystal Advanced Optoelectronics and/or the Company, pursuant to a concert party agreement dated January 1, 2021[61] Interests and Short Positions of Substantial Shareholders and Other Persons in Shares and Underlying Shares of the Company As of June 30, 2025, Microcrystal Advanced Optoelectronics, Jingyu Investment, Jingshi Investment, Jingling Investment, Jingrui Investment, APTESS, Ms. Lao, Giant Power Limited, Yaoning Technology, Ningbo Chunhua Qiushi, Angbu Investment, Mr. Li Xingxing, Yuetec Investment, Yuetec Group, Yuetec Holdings, and Su Yongchun, among other substantial shareholders and other persons, held interests in the company's shares or underlying shares Interests of Substantial Shareholders and Other Persons in the Company's Shares (As of June 30, 2025) | Name of Substantial Shareholder/Person | Capacity/Nature of Interest | Class of Shares | Number of Shares(1) | Approximate Percentage of Shareholding(1) (%) | | :--- | :--- | :--- | :--- | :--- | | Microcrystal Advanced Optoelectronics | Beneficial owner | Domestic unlisted shares | 149,824,524 (L) | 27.89 | | | | H shares | 52,483,352 (L) | 9.77 | | Yaoning Technology | Beneficial owner | Domestic unlisted shares | 34,291,286 (L) | 6.38 | | | | H shares | 34,291,287 (L) | 6.38 | | Guangdong Yuetec Financial Equity Investment Co., Ltd. | Beneficial owner | Domestic unlisted shares | 23,712,360 (L) | 4.41 | - Microcrystal Advanced Optoelectronics, Jingyu Investment, Jingling Investment, Jingrui Investment, and Jingshi Investment are parties acting in concert pursuant to a concert party agreement dated December 8, 2023[65][74] Purchase, Sale or Redemption of the Company's Listed Securities During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities, and no treasury shares were held as of June 30, 2025 - During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[72] - As of June 30, 2025, the company did not hold any treasury shares[73] Continuing Disclosure Obligations under Rules 13.20, 13.21 and 13.22 of the Listing Rules During the reporting period, the company had no continuing disclosure obligations under Rules 13.20, 13.21, and 13.22 of the Listing Rules - During the reporting period, the company had no continuing disclosure obligations under Rules 13.20, 13.21, and 13.22 of the Listing Rules[76] Pension Scheme Employees of the Group's subsidiaries operating in Mainland China are required to participate in a central pension scheme operated by local municipal governments, with the company contributing a certain percentage of wage costs - Employees of subsidiaries in Mainland China are required to participate in a central pension scheme operated by local municipal governments, and the company is required to contribute a certain percentage of wage costs[77] Share Incentive Schemes The company has Share Incentive Schemes I, II, and III, where participants indirectly hold awarded shares through employee shareholding platforms, subject to regulatory lock-up requirements and prescribed lock-up periods - The company has Share Incentive Schemes I, II, and III, where participants indirectly hold interests in incentive shares through employee shareholding platforms[78] - Awards under the Share Incentive Schemes are subject to regulatory lock-up requirements and prescribed lock-up periods (from the grant date until two years after the listing date)[78] - As of June 30, 2025, all restricted share units under the Share Incentive Schemes have been granted to eligible participants[79] Events After the Reporting Period and Material Changes The directors confirm that there have been no material adverse changes in the company's financial or trading position or prospects, nor any events with a significant impact on the information contained in this interim report, from June 30, 2025, up to the date of this interim report - From June 30, 2025, up to the date of this interim report, there have been no material adverse changes in the company's financial or trading position or prospects[80] Independent Review Report This section presents the independent review report by Ernst & Young, confirming that nothing has come to their attention to suggest that the interim financial information is not prepared in all material respects in accordance with IAS 34 Scope of Review and Conclusion Ernst & Young has reviewed the Group's interim financial information for the six months ended June 30, 2025, and found no matters suggesting it was not prepared in all material respects according to IAS 34 - Ernst & Young has reviewed the interim financial information, and this review was conducted in accordance with Hong Kong Standard on Review Engagements 2410 issued by the Hong Kong Institute of Certified Public Accountants[81][82] - The review concluded that nothing has come to their attention that causes them to believe the interim financial information is not prepared, in all material respects, in accordance with International Accounting Standard 34[83] Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income This section presents the interim condensed consolidated statement of profit or loss and other comprehensive income, showing the Group's revenue, profit, and other comprehensive income for the six months ended June 30, 2025 Overview of Profit or Loss and Comprehensive Income For the six months ended June 30, 2025, the Group achieved revenue of RMB 1,112,620 thousand, a 3.9% year-on-year increase, but profit for the period significantly decreased by 77.4% to RMB 11,232 thousand 2025 First Half Consolidated Statement of Profit or Loss Summary | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,112,620 | 1,070,896 | +3.9% | | Gross Profit | 167,757 | 196,974 | -14.8% | | Profit Before Tax | 13,965 | 53,086 | -73.7% | | Profit for the Period | 11,232 | 49,779 | -77.4% | | Earnings Per Share Attributable to Owners of the Parent (RMB) | 0.02 | 0.10 | -80.0% | - Sales and distribution expenses and research and development expenses increased year-on-year, while administrative expenses decreased[86] - Other comprehensive loss for the period primarily arose from fair value changes of financial assets measured at fair value through other comprehensive income and exchange differences on translation of overseas operations[87] Interim Condensed Consolidated Statement of Financial Position This section presents the interim condensed consolidated statement of financial position, detailing the Group's assets, liabilities, and equity as of June 30, 2025 Overview of Assets and Liabilities As of June 30, 2025, the Group's total assets were RMB 2,940,430 thousand, a 5.2% decrease from the end of 2024, with net current assets improving to RMB 444,015 thousand 2025 June 30 Consolidated Statement of Financial Position Summary | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 1,074,778 | 1,059,982 | +1.4% | | Total Current Assets | 1,865,652 | 2,041,533 | -8.6% | | Total Current Liabilities | 1,421,637 | 1,768,416 | -19.6% | | Total Non-current Liabilities | 246,110 | 38,239 | +542.6% | | Net Assets | 1,272,683 | 1,294,860 | -1.7% | - Net current assets increased from RMB 273,117 thousand at December 31, 2024, to RMB 444,015 thousand[89] - The significant increase in non-current liabilities was primarily due to the recognition of deferred income[90] Interim Condensed Consolidated Statement of Changes in Equity This section presents the interim condensed consolidated statement of changes in equity, showing the movements in the Group's equity for the six months ended June 30, 2025 Overview of Changes in Equity For the six months ended June 30, 2025, the Group's total equity was RMB 1,272,683 thousand, a slight decrease from RMB 1,294,860 thousand at the end of 2024, with total comprehensive income for the period at RMB 11,010 thousand 2025 First Half Consolidated Statement of Changes in Equity Summary | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Equity | 1,272,683 | 1,294,860 | -1.7% | | Total Comprehensive Income for the Period | 11,010 | Not applicable | Not applicable | | Dividends Declared | (36,526) | Not applicable | Not applicable | - Share capital remained unchanged, reserves slightly decreased, but share-based payment reserve increased[92] Interim Condensed Consolidated Statement of Cash Flows This section presents the interim condensed consolidated statement of cash flows, detailing the Group's cash flows from operating, investing, and financing activities for the six months ended June 30, 2025 Overview of Cash Flows For the six months ended June 30, 2025, net cash flow from operating activities was RMB 3,966 thousand, a significant 94.2% year-on-year decrease, with net cash used in investing activities at RMB 150,961 thousand 2025 First Half Consolidated Statement of Cash Flows Summary | Metric | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 3,966 | 69,194 | -94.2% | | Net Cash Flow (Used in)/from Investing Activities | (150,961) | 17,222 | Not applicable | | Net Cash Flow from Financing Activities | 91,860 | 27,111 | +238.8% | | Cash and Cash Equivalents at End of Period | 444,553 | 323,738 | +37.3% | - Operating cash flow significantly decreased primarily due to payments for prior period accounts payable and increased R&D investment[95] - Increased cash outflow from investing activities was mainly due to the purchase of financial assets measured at fair value through profit or loss and placement of pledged time deposits[96] Notes to Interim Condensed Consolidated Financial Statements This section provides detailed notes to the interim condensed consolidated financial statements, covering company information, basis of preparation, accounting policy changes, operating segment information, revenue, profit before tax, income tax, dividends, earnings per share, property, plant and equipment, inventories, trade and bills receivables, trade and bills payables, other payables and accrued expenses, share capital, share-based payments, commitments, related party transactions, fair value of financial instruments, and approval of financial information Company and Group Information Guangdong Jingke Electronics Co., Ltd. was established in China, primarily engaged in the production and sale of LED-related products and automotive smart visual products - The company was established in the People's Republic of China, with its principal activities being the production and sale of LED-related products and automotive smart visual products[97][103] Basis of Preparation The interim condensed consolidated financial information is prepared in accordance with IAS 34 and should be read in conjunction with the Group's annual consolidated financial statements for the year ended December 31, 2024 - The interim condensed consolidated financial information has been prepared in accordance with International Accounting Standard 34 and should be read in conjunction with the Group's annual consolidated financial statements for the year ended December 31, 2024[97] - The unaudited interim condensed consolidated financial information is presented in RMB, and all values are rounded to the nearest thousand unless otherwise specified[98] Changes in Accounting Policies and Disclosures Except for the first-time adoption of IAS 21 (Amendment) "Lack of Exchangeability," the accounting policies used to prepare the interim condensed consolidated financial information are consistent with those of the previous year, with no significant financial impact - Except for the first-time adoption of IAS 21 (Amendment) "Lack of Exchangeability" during this period, the accounting policies used to prepare the interim condensed consolidated financial information are consistent with those applied in the preparation of the Group's annual consolidated financial statements for the year ended December 31, 2024[99] - The adoption of the above revised IFRS accounting standards had no significant financial impact on the interim condensed consolidated financial information[100] Operating Segment Information For management purposes, the Group has only one reportable operating segment, with its principal operating entities and most revenue derived from Mainland China - For management purposes, the Group does not disaggregate business units by its services and products and has only one reportable operating segment[101] - The principal operating entities are all located in Mainland China, and most of the Group's revenue from external customers is generated from Mainland China[102] Information about Major Customers In the first half of 2025, Customer I contributed RMB 307,286 thousand in revenue, and Customer II contributed RMB 176,536 thousand Revenue from Major Customers (RMB thousand) | Customer | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Customer I | 307,286 | 416,074 | | Customer II | 176,536 | 120,531 | | Customer III | Not applicable | 119,007 | Revenue, Other Income and Gains The Group's revenue from contracts with customers for the first half of 2025 was RMB 1,112,620 thousand, with total other income and gains of RMB 17,500 thousand, primarily from interest income, government grants, and exchange differences 2025 First Half Other Income and Gains | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest income | 4,022 | 2,432 | | Government grants | 8,725 | 1,865 | | Exchange difference gains | 512 | 977 | | Investment income from financial assets measured at fair value through profit or loss | 1,662 | 1,652 | | Total other income and gains | 17,500 | 11,143 | - Government grants primarily refer to awards received from local governments to compensate for R&D contributions, local economic contributions, and purchases of property, plant, and equipment projects[108] - Performance obligations are satisfied upon delivery of smart visual products and systems, with payments generally due 60 to 120 days from delivery[107] Profit Before Tax The Group's profit before tax from continuing operations was RMB 13,965 thousand, a significant decrease from RMB 53,086 thousand in the same period last year, with major costs including cost of inventories sold, depreciation, R&D costs, and employee benefit expenses 2025 First Half Major Deductions/Additions to Profit Before Tax | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of inventories sold | 944,863 | 873,922 | | Depreciation of property, plant and equipment | 56,052 | 61,164 | | Research and development costs | 55,696 | 44,638 | | Total employee benefit expenses | 189,579 | 161,225 | - Research and development costs increased by 24.8% year-on-year, and total employee benefit expenses increased by 17.6% year-on-year[109] Income Tax The Group is subject to income tax on an entity basis, with Hong Kong subsidiaries having no taxable profits, and Mainland China subsidiaries enjoying preferential tax rates of 15% or 25% depending on their status 2025 First Half Income Tax Expense | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current income tax | 1,950 | 3,122 | | Deferred income tax | 783 | 185 | | Total | 2,733 | 3,307 | - The company and certain subsidiaries enjoy a preferential tax rate of 15% as high-tech enterprises or located in the Nansha Pilot Free Trade Zone[114] Dividends For the six months ended June 30, 2025, the company declared and paid a final dividend of RMB 36,526 thousand for the previous year 2025 First Half Dividends Declared | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Final dividend declared and paid for the previous year during the subsequent year (tax inclusive) | 36,526 | — | Earnings Per Share Attributable to Owners of the Parent For the six months ended June 30, 2025, basic and diluted earnings per share attributable to owners of the parent were RMB 0.02, calculated based on a weighted average of 537,146,709 ordinary shares outstanding 2025 First Half Earnings Per Share Calculation | Metric | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Profit attributable to ordinary equity holders of the Company (RMB thousand) | 11,232 | 49,779 | | Weighted average number of ordinary shares outstanding during the period (thousand shares) | 537,147 | 496,583 | | Basic and diluted earnings per share (RMB) | 0.02 | 0.10 | - No diluted adjustment was made to the basic earnings per share amount presented for the reporting period as the Group had no potentially dilutive ordinary shares outstanding during the period[117] Property, Plant and Equipment For the six months ended June 30, 2025, the Group acquired assets of approximately RMB 95,497 thousand, incurred depreciation of RMB 56,052 thousand, and disposed of assets with a net book value of RMB 412 thousand, resulting in a net loss on disposal of RMB 135 thousand 2025 First Half Property, Plant and Equipment Movements | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Cost of assets acquired | 95,497 | 51,311 | | Depreciation | 56,052 | 61,164 | | Net book value of assets disposed of | 412 | 497 | | Net loss on disposal | 135 | 360 | Inventories As of June 30, 2025, the Group's total inventories amounted to RMB 249,606 thousand, a decrease from RMB 284,911 thousand at the end of 2024, primarily comprising raw materials, work-in-progress, finished goods, and contract costs Inventory Composition (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Raw materials and consumables | 77,299 | 96,132 | | Work-in-progress | 29,771 | 30,789 | | Finished goods | 120,173 | 132,046 | | Contract costs | 22,363 | 25,944 | | Total | 249,606 | 284,911 | Trade and Bills Receivables As of June 30, 2025, total trade and bills receivables amounted to RMB 960,134 thousand, a decrease from the end of 2024, with credit terms typically ranging from 60 to 120 days Trade and Bills Receivables (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade receivables | 897,236 | 941,321 | | Bills receivable | 83,063 | 172,616 | | Impairment | (20,165) | (21,446) | | Total | 960,134 | 1,092,491 | - The Group primarily enters into trade terms with its customers on credit, with credit periods typically ranging from 60 to 120 days[123] - The Group is committed to strictly controlling its outstanding receivables and has a credit control department to minimize credit risk[123] Trade and Bills Payables As of June 30, 2025, total trade and bills payables amounted to RMB 901,706 thousand, a decrease from RMB 1,178,783 thousand at the end of 2024, with trade payables to third parties being interest-free and generally settled within one to three months Trade Payables Aging Analysis (RMB thousand) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 1 year | 897,797 | 1,175,611 | | 1 to 2 years | 1,996 | 2,035 | | 2 to 3 years | 835 | 59 | | Over 3 years | 1,078 | 1,078 | | Total | 901,706 | 1,178,783 | - Trade payables to third parties of the company are interest-free and generally settled within one to three months from the invoice date[125] Other Payables and Accrued Expenses As of June 30, 2025, total other payables and accrued expenses amounted to RMB 348,242 thousand, a decrease from RMB 491,985 thousand at the end of 2024, primarily including salaries and welfare payable, other payables, dividends payable, and other taxes payable Other Payables and Accrued Expenses (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Deposits received | 2,547 | 2,280 | | Salaries and welfare payable | 37,576 | 48,931 | | Other payables | 261,228 | 223,452 | | Dividends payable | 36,526 | — | | Government subsidies payable | — | 200,000 | | Other taxes payable | 10,365 | 17,322 | | Total | 348,242 | 491,985 | Share Capital As of June 30, 2025, the company's issued and fully paid share capital was RMB 537,147 thousand, with 537,146,709 ordinary shares of RMB 1.00 par value each, consistent with the end of 2024 Summary of Share Capital Movements | Item | Number of shares issued | Share capital (RMB thousand) | | :--- | :--- | :--- | | As at January 1, 2024 | 480,078,011 | 480,078 | | New shares issued for share incentive schemes | 18,428,698 | 18,429 | | New shares issued for initial public offering | 38,640,000 | 38,640 | | As at December 31, 2024 and June 30, 2025 | 537,146,709 | 537,147 | Share-based Payments The company has Share Incentive Schemes I, II, and III, granting restricted shares to employees and directors through employee shareholding platforms, which vest upon meeting specific conditions - The company granted restricted share schemes ("Share Incentive Scheme I") to employees and directors of the Group and established new employee shareholding platforms under Share Incentive Scheme II and Share Incentive Scheme III[129] - Shares granted to employees under Share Incentive Scheme III shall vest in four equal tranches over a four-year period upon completion of the company's public offering, expiry of the corresponding lock-up period, and achievement of annual performance milestones[129] Number of Restricted Shares (thousand shares) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Restricted shares granted by the Company under the schemes | 32,534 | 32,534 | Commitments As of June 30, 2025, the Group's capital commitments primarily related to the acquisition of property, plant and equipment and intangible assets, with total contracted but unexpended capital expenditures of RMB 346,707 thousand, mainly for the construction of Guangzhou Lingwei Capital Commitments (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Construction in progress | 346,707 | 70,626 | - Capital commitments primarily relate to the acquisition of property, plant and equipment and intangible assets, mainly for the construction investment of Guangzhou Lingwei[132] Related Party Transactions The Group engaged in transactions with various related parties, including Geely-affiliated entities and Epistar Corporation, with significant sales and purchases of goods and services, and outstanding trade receivables and payables balances 2025 First Half Related Party Transactions Summary (RMB thousand) | Transaction Type | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Revenue from goods and services | 365,488 | 448,595 | | Purchase of goods and services | 64,526 | 77,686 | 2025 June 30 Outstanding Balances with Related Parties Summary (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade and bills receivables | 201,102 | 263,558 | | Trade payables | 49,311 | 66,484 | - Sales to and purchases from related parties were conducted at published prices and terms, and credit periods granted by related parties were generally consistent with those granted to major customers[135][136] Names and Relationships of Related Parties This section lists the names of the Group's major related parties and their relationships with the company, including shareholders holding over 5% indirect or direct equity, entities controlled by the ultimate controlling shareholder, and Geely-affiliated entities - Related parties include Epistar Corporation (shareholder holding over 5% indirect equity), Zhejiang Yaoning Technology Group Co., Ltd. (shareholder holding over 5% direct equity), and multiple Geely-affiliated entities[134] - Guangdong Xinyueneng Semiconductor Co., Ltd. and Guangdong Xinjuneng Semiconductor Co., Ltd. are controlled by the company's ultimate controlling party[134] Remuneration of Directors, Supervisors and Chief Executives For the six months ended June 30, 2025, the total remuneration for directors, supervisors, and chief executives was RMB 4,685 thousand, including fees, salaries, allowances, performance-related bonuses, share-based payment expenses, and pension scheme contributions 2025 First Half Remuneration of Directors, Supervisors and Chief Executives (RMB thousand) | Remuneration Category | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Fees | 355 | 354 | | Salaries, allowances and benefits in kind | 2,476 | 2,106 | | Performance-related bonuses | 411 | 213 | | Share-based payment expenses | 1,346 | 2,053 | | Pension scheme contributions | 97 | 91 | | Total | 4,685 | 4,817 | - Total fees for independent non-executive directors were RMB 355 thousand, with Ms. Zhang He, Ms. Lin Nan, and Ms. Ding Hui each receiving RMB 80 thousand, and Mr. Chen Zhiguang receiving RMB 115 thousand[142] - Total remuneration for Executive Directors Mr. Xiao Guowei and Mr. Hou Yu was RMB 2,325 thousand and RMB 1,315 thousand, respectively[143] Other Transactions On June 25, 2025, the company subscribed for shares in Cao Cao Mobility Limited's international offering at a cost of approximately RMB 14,350 thousand, which is classified as a financial asset measured at fair value through profit or loss - The company subscribed for shares in Cao Cao Mobility Limited's international offering at a cost of approximately RMB 14,350 thousand[149] - This investment is classified as a financial asset measured at fair value through profit or loss, with a fair value of approximately RMB 12,099 thousand as of June 30, 2025[149] Fair Value and Fair Value Hierarchy of Financial Instruments The carrying amounts of the Group's financial instruments approximate their fair values in the short term, and management has assessed that the fair values of current instruments like cash and cash equivalents and receivables/payables are similar to their carrying amounts Carrying Amounts and Fair Values of Financial Instruments (RMB thousand) | Item | June 30, 2025 Carrying Amount | December 31, 2024 Carrying Amount | June 30, 2025 Fair Value | December 31, 2024 Fair Value | | :--- | :--- | :--- | :--- | :--- | | Financial assets measured at fair value through profit or loss | 83,343 | 42,613 | 83,343 | 42,613 | | Interest-bearing bank and other borrowings | 52,512 | 65,237 | 52,049 | 64,773 | - Management has assessed that the fair values of current instruments such as cash and cash equivalents, restricted deposits, and trade receivables approximate their carrying amounts, primarily due to their short-term maturity[150] Approval of Financial Information The interim condensed consolidated financial information was approved and authorized for issue by the Board of Directors on August 28, 2025 - The interim condensed consolidated financial information was approved and authorized for issue by the Board of Directors on August 28, 2025[153] Definitions This section provides definitions for key terms used throughout the report, covering company entities, legal documents, committees, geographical areas, share types, listing-related terms, and major shareholders and related parties Definitions of Key Terms This section provides definitions for key terms used in the report, including company entities, legal documents, committees, geographical areas, share types, listing-related terms, and major shareholders and related parties - Definitions are provided for company and governance-related terms such as "Microcrystal Advanced Optoelectronics," "Audit Committee," "Corporate Governance Code," "the Company," "Controlling Shareholder," "Directors," "Global Offering," "the Group," and "H Shares"[154][155][156] - Explanations are given for terms related to employee shareholding platforms and controlling shareholder group members, including "Jingling Investment," "Jingrui Investment," "Jingshi Investment," and "Jingyu Investment"[155] Glossary of Technical Terms This section explains various technical terms used in the report, covering automotive smart vision, LED technology, display technology, and related industry terms, to aid reader comprehension of specialized content Explanation of Technical Terms This section explains various technical terms used in the report, covering automotive smart vision, LED technology, display technology, and related industry terms, to aid reader comprehension of specialized content - Explanations are provided for automotive smart vision and LED technology-related terms such as "ADB" (Adaptive Driving Beam), "AI" (Artificial Intelligence), "COB" (Chip-on-Board), and "LED+ Technology"[161] - Explanations are given for new display technology-related terms such as "Local Dimming," "Mini LED," and "Micro LED"[163]