朝云集团(06601) - 2025 - 中期业绩

Financial Highlights This section provides a concise overview of the company's key financial performance metrics for the reporting period Financial Performance (thousand RMB) | Metric | H1 2025 (thousand RMB) | H1 2024 (thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,338,807 | 1,249,136 | 7.2 | | Gross Profit | 659,785 | 579,011 | 14.0 | | Profit Before Tax | 231,701 | 220,065 | 5.3 | | Profit for the Period | 171,106 | 175,873 | -2.7 | | Basic Earnings Per Share (cents RMB) | 13.02 | 13.46 | -3.3 | Business Overview and Outlook Business Summary In H1 2025, the Group focused on customer value, achieving a 7.2% revenue increase, 27.4% online channel revenue growth, 101.4% pet business revenue growth, 5.3% profit before tax growth, a 2.9 percentage point increase in gross margin, and robust cash reserves, with an interim dividend of RMB 0.0521 per share and a 40.0% payout ratio Key Financial and Operational Metrics (million RMB) | Metric | H1 2025 (million RMB) | H1 2024 (million RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,338.8 | 1,249.1 | 7.2 | | Online Channel Revenue Growth | - | - | 27.4 | | Pet Business Revenue Growth | - | - | 101.4 | | Profit Before Tax | 231.7 | 220.1 | 5.3 | | Gross Margin Improvement | 2.9 percentage points | - | - | | Interim Dividend (per share RMB) | 0.0521 | 0.0538 | -3.2 | | Payout Ratio | 40.0% | 40.0% | 0.0 | - The Group adheres to principles of high quality, sustainability, and stable profitability, implementing effective cost management to ensure continuous and stable growth in revenue, cash, and profit[5][6] - As of June 30, 2025, the Group's total cash, cash equivalents, and bank deposits amounted to RMB 2,650.0 million, indicating ample cash reserves[5] Business Overview In H1 2025, the Group achieved high-quality performance through various initiatives, including rapid online channel growth, doubled pet business revenue, leading market share in home care products, and enhanced profitability via product innovation and supply chain reform Revenue by Product Category Revenue by Product Category (million RMB) | Product Category | H1 2025 (million RMB) | H1 2024 (million RMB) | Growth (%) | | :--- | :--- | :--- | :--- | | Home Care Products | 1,214.2 | 1,163.6 | 4.3 | | Pet Stores and Pet Products | 96.0 | 47.6 | 101.4 | | Personal Care Products | 25.8 | 34.8 | -25.8 | Revenue by Sales Channel Revenue by Sales Channel (million RMB) | Sales Channel | H1 2025 (million RMB) | H1 2024 (million RMB) | Growth (%) | | :--- | :--- | :--- | :--- | | Online Channels | 517.2 | 405.9 | 27.4 | | Offline Channels | 821.6 | 843.3 | -2.6 | Marketing Strategy and Brand Building - Online sales channels achieved rapid development in content e-commerce, building more RMB 100 million channels while deepening presence in Taobao, JD, and Pinduoduo; increasing sales proportion of trending products like portable mosquito repellents, home cleaning, and pet food; and continuously optimizing investment-to-output ratio to enhance online operational efficiency and profitability[7] - Offline sales channels implemented multi-category distribution coverage, strengthening the distribution quantity and quality of high-margin products to enhance market foundation, and utilizing special display methods like product image displays, stack-ups, and shelf strips for promotion to improve resource input-output[10] - NielsenIQ retail market data indicates the Group's insecticide and mosquito repellent products have ranked first in comprehensive market share among similar products in China for eleven consecutive years (2015 to 2025), with electric mosquito liquid, insecticide aerosols, and toilet cleaners achieving offline market share leadership during the reporting period[9] Product Innovation and Supply Chain Reform - The Group drives overall revenue structure optimization and profitability improvement by creating high-margin blockbuster product matrices that address consumer pain points through technological innovation; continuously enhancing the leading brand power of insecticide, mosquito repellent, and home cleaning products; and launching differentiated, highly effective, and health-ingredient-focused single products, further optimizing the product structure[10] - Supply chain reform continuously enhances the Group's overall supply chain operational efficiency, optimizes supply costs, and strengthens overall profitability by implementing technological upgrades and increasing automated production lines in owned factories, lean management of outsourced factories, and upgrading and innovating R&D formulations[10] Business Outlook The company will adhere to a high-quality, sustainable, and stable profitability strategy, maintaining strong cash flow, continuously improving profitability, implementing a high dividend policy, and focusing on home care, pet business, online and offline channel expansion, enhancing R&D capabilities, strengthening team building, and actively pursuing M&A opportunities to maximize shareholder returns - Home care business expansion: Further develop high-end natural home care product lines, improve product gross margins, advance home cleaning product distribution coverage; continuously upgrade insecticide and mosquito repellent products, establish cockroach and mite control product lines, and accelerate online and offline marketing and promotion[11] - Pet business expansion: Further expand pet store coverage and number, enhance single-store profitability, create blockbuster pet food and product combinations online, continue to drive pet business development, and build a moat for the pet business[11] - Online channel breakthroughs: Maintain brand and market positions on Taobao, JD, and Pinduoduo, rapidly develop content e-commerce channels like Douyin, and further consolidate leadership and moats in various categories based on core product competitiveness, enhancing e-commerce business profitability[11] - Actively pursue M&A opportunities: Focus on domestic and international pet, personal care, cosmetics, and fast-moving consumer goods industries, accelerate the pace of mergers and acquisitions, targeting high-quality projects with stable cash flow, clear profit models, and business development potential[11] Condensed Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the company's revenue increased by 7.2% to RMB 1,338.8 million, gross profit rose by 14.0% to RMB 659.8 million, and profit before tax grew by 5.3% to RMB 231.7 million, but profit for the period slightly decreased by 2.7% to RMB 171.1 million, mainly due to increased income tax expense and exchange differences Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (thousand RMB) | Metric | H1 2025 (thousand RMB) | H1 2024 (thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,338,807 | 1,249,136 | 7.2 | | Cost of Sales | (679,022) | (670,125) | 1.3 | | Gross Profit | 659,785 | 579,011 | 14.0 | | Other Income | 55,322 | 59,997 | -7.8 | | Other Gains and Losses | 9,596 | (11,684) | N/A | | Selling and Distribution Expenses | (408,262) | (317,747) | 28.5 | | Administrative Expenses | (80,054) | (86,789) | -7.8 | | Finance Costs | (1,201) | (738) | 62.7 | | Profit Before Tax | 231,701 | 220,065 | 5.3 | | Income Tax Expense | (60,595) | (44,192) | 37.1 | | Profit for the Period | 171,106 | 175,873 | -2.7 | | Basic Earnings Per Share (RMB cents) | 13.02 | 13.46 | -3.3 | Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets less current liabilities amounted to RMB 3,081.7 million, a slight increase from the end of 2024, with net assets rising to RMB 3,052.6 million and ample cash and bank balances maintained Condensed Consolidated Statement of Financial Position (thousand RMB) | Metric | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Non-current Assets | 480,025 | 684,972 | | Current Assets | 2,991,916 | 3,321,678 | | Current Liabilities | (781,976) | (595,142) | | Net Current Assets | 2,209,940 | 2,726,536 | | Total Assets Less Current Liabilities | 3,081,746 | 3,019,727 | | Non-current Liabilities | (29,169) | (30,493) | | Net Assets | 3,052,577 | 2,989,234 | | Total Equity | 3,052,577 | 2,989,234 | - As of June 30, 2025, bank balances and cash totaled RMB 891.4 million[13] Notes to the Condensed Consolidated Financial Statements Basis of Preparation and Accounting Policies The condensed consolidated financial statements are prepared in accordance with IAS 34 and HKEX Listing Rules, using a historical cost basis, and the first-time application of IAS 21 (Amendment) "Lack of Exchangeability" had no material impact on financial position or performance - The condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" issued by the International Accounting Standards Board and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[15] - The condensed consolidated financial statements have been prepared on the historical cost basis, except for certain financial instruments that are measured at fair value where applicable[16] - The application of an amendment to an IFRS accounting standard (IAS 21 (Amendment) Lack of Exchangeability) during the current interim period had no material impact on the Group's financial position and performance for the current and prior periods and/or the disclosures contained in these condensed consolidated financial statements[17] Revenue and Segment Information The Group's revenue primarily derives from sales of home care, pet, and personal care products, with home care being the largest contributor; management views the Group as a single operating segment for resource allocation and performance assessment, with almost all revenue generated from China and no single external customer accounting for 10% or more of revenue Disaggregation of Revenue from Contracts with Customers Revenue by Product or Service Category (thousand RMB) | Product or Service Category | H1 2025 (thousand RMB) | H1 2024 (thousand RMB) | | :--- | :--- | :--- | | Home Care | 1,214,162 | 1,163,557 | | Pet Stores and Pet Products | 95,955 | 47,633 | | Personal Care | 25,776 | 34,752 | | Others | 2,914 | 3,194 | | Total | 1,338,807 | 1,249,136 | Segment Information - The Group's revenue and operating results are reported to the executive directors of the Company (i.e., the chief operating decision makers) for resource allocation and performance assessment, with the chief operating decision makers having identified one operating segment and presenting entity-wide disclosures regarding revenue, major customers, and geographical information in accordance with IFRS 8 Operating Segments[20] Geographical Information - The Group primarily operates in China (also its country of domicile), with almost all of its revenue derived from operations in China and almost all of its non-current assets located in China[22] Information About Major Customers - For the six months ended June 30, 2025 and 2024, no revenue from a single external customer accounted for 10% or more of the Group's revenue[23] Other Income Other income primarily comprises government grants, bank interest income, and interest income from other financial assets, totaling RMB 55.3 million in H1 2025, a 7.8% decrease from the prior year, mainly due to lower bank interest Other Income by Category (thousand RMB) | Category | H1 2025 (thousand RMB) | H1 2024 (thousand RMB) | | :--- | :--- | :--- | | Government Grants | 9,018 | 34,362 | | Bank Interest Income | 43,910 | 12,029 | | Interest income from other financial assets measured at amortized cost | 5,164 | 6,151 | | Investment income from financial assets at fair value through profit or loss | 1,416 | 2,337 | | Others | 489 | 443 | | Total | 55,322 | 59,997 | Other Gains and Losses In H1 2025, other gains of RMB 9.6 million were recorded, compared to a loss of RMB 11.7 million in the prior period, primarily influenced by net foreign exchange gains and fair value changes of financial assets Other Gains and Losses by Category (thousand RMB) | Category | H1 2025 (thousand RMB) | H1 2024 (thousand RMB) | | :--- | :--- | :--- | | Gain (loss) on disposal of property, plant and equipment | 75 | (1) | | Donation | – | (50) | | Net foreign exchange gain (loss) | 9,521 | (1,237) | | Loss on fair value change of financial assets at fair value through profit or loss | – | (10,016) | | Loss on fair value change of contingent consideration as financial liabilities at fair value through profit or loss | – | (380) | | Total | 9,596 | (11,684) | Selling and Distribution Expenses Selling and distribution expenses increased by 28.5% to RMB 408.3 million, mainly due to a significant rise in e-commerce channel marketing and advertising service fees to support online channel and pet business revenue growth Selling and Distribution Expenses by Category (thousand RMB) | Category | H1 2025 (thousand RMB) | H1 2024 (thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Staff costs | 57,883 | 56,768 | 2.0 | | Promotion expenses | 37,815 | 38,540 | -1.9 | | E-commerce channel marketing expenses | 203,011 | 136,226 | 49.0 | | Advertising service fees | 26,364 | 11,754 | 124.3 | | Transportation and storage expenses | 63,084 | 59,062 | 6.8 | | Marketing expenses | 11,762 | 10,330 | 13.9 | | Others | 8,343 | 5,067 | 64.6 | | Total | 408,262 | 317,747 | 28.5 | Finance Costs Finance costs primarily consist of interest expense on lease liabilities, amounting to RMB 1.2 million in H1 2025, an increase from the prior period Finance Costs by Category (thousand RMB) | Category | H1 2025 (thousand RMB) | H1 2024 (thousand RMB) | | :--- | :--- | :--- | | Interest expense on lease liabilities | 1,201 | 738 | Income Tax Expense Income tax expense increased by 37.1% to RMB 60.6 million, primarily due to higher profit before tax and a higher effective tax rate of 26.2% (up from 20.1%) as a subsidiary's High-Tech Enterprise qualification renewal was pending Income Tax Expense by Category (thousand RMB) | Category | H1 2025 (thousand RMB) | H1 2024 (thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Current tax | 63,943 | 48,627 | 31.5 | | Over-provision in prior year | (64) | (4,257) | -98.5 | | Deferred tax | (3,284) | (178) | 1744.9 | | Total | 60,595 | 44,192 | 37.1 | - Anfu Chaowei Biotechnology Co., Ltd. qualified as a High-Tech Enterprise and was entitled to a preferential tax rate of 15% granted by local tax authorities from 2022 to 2024; as of June 30, 2025, and the date of publication of these condensed consolidated financial statements, Anfu Chaowei is still processing its High-Tech Enterprise qualification application for 2025[30] Staff Costs and Depreciation Total staff costs remained stable, while total depreciation increased, with a slight decrease in depreciation of property, plant, and equipment and an increase in depreciation of right-of-use assets Staff Costs and Depreciation (thousand RMB) | Category | H1 2025 (thousand RMB) | H1 2024 (thousand RMB) | | :--- | :--- | :--- | | Total staff costs | 111,633 | 112,093 | | Depreciation of property, plant and equipment | 10,352 | 10,919 | | Depreciation of right-of-use assets | 10,636 | 7,285 | | Total depreciation | 20,988 | 18,204 | Dividends The Board has resolved to declare an interim dividend of RMB 0.0521 per share, maintaining a 40.0% payout ratio, with the 2024 final dividend totaling RMB 90.9 million Dividend Information (per share RMB) | Dividend Type | H1 2025 (per share RMB) | H1 2024 (per share RMB) | | :--- | :--- | :--- | | Interim Dividend | 0.0521 | 0.0538 | | Payout Ratio | 40.0% | 40.0% | - During the current interim period, a final dividend of RMB 0.0682 per ordinary share for the year ended December 31, 2024, totaling approximately RMB 90,933,000, was declared to the owners of the Company and paid on July 8, 2025[32] Earnings Per Share For the six months ended June 30, 2025, basic earnings per share attributable to owners of the company was RMB 13.02 cents, a slight decrease from the prior period Earnings Per Share (thousand RMB, cents RMB) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company (thousand RMB) | 173,562 | 179,461 | | Weighted average number of ordinary shares (thousand shares) | 1,333,334 | 1,333,334 | | Basic earnings per share (RMB cents) | 13.02 | 13.46 | Trade and Other Receivables Total trade and other receivables increased to RMB 152.4 million, primarily due to higher trade receivables and amounts due from intermediaries; the Group typically requires prepayment or grants 30 to 60 days credit for trade receivables and makes provisions for expected credit losses Trade and Other Receivables (thousand RMB) | Category | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Trade receivables (net of allowance) | 74,800 | 15,838 | | Prepayments for raw materials | 10,467 | 13,904 | | Prepaid marketing service fees | 7,623 | 18,356 | | Other recoverable taxes | 45,185 | 16,120 | | Amounts due from intermediaries | 11,125 | 3,270 | | Other receivables | 3,270 | 18,119 | | Total | 152,424 | 97,460 | - The Group generally requires most customers to prepay before goods delivery; for certain customers, the Group allows a credit period of 30 to 60 days from the invoice date for trade receivables[35] - For the six months ended June 30, 2025, the Group recognized a credit loss allowance of approximately RMB 3,485,000 (unaudited) for trade receivables (six months ended June 30, 2024: RMB 1,985,000 (unaudited))[38] Trade and Other Payables Total trade and other payables amounted to RMB 389.4 million, a decrease from the end of 2024, primarily due to reduced trade payables and accrued sales rebates; the credit period for trade payables is typically 20 to 60 days Trade and Other Payables (thousand RMB) | Category | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Trade payables | 159,623 | 189,907 | | Accrued sales rebates | 118,350 | 124,545 | | Other accrued expenses | 43,475 | 23,616 | | Accrued staff salaries and benefits | 37,652 | 48,791 | | Construction costs payable | 1,321 | 3,290 | | Other taxes payable | 20,229 | 4,055 | | Other payables | 8,710 | 11,978 | | Total | 389,360 | 406,182 | - The credit period for trade payables is generally within 20 to 60 days from the invoice date[40] Management Discussion and Analysis Financial Review In H1 2025, the Group's revenue grew by 7.2%, gross margin improved by 2.9 percentage points, and profit before tax increased by 5.3%, though profit for the period slightly declined; online channels and pet business performed strongly, selling and distribution expenses rose with business growth, administrative expenses decreased due to improved operational efficiency, and the Group maintained a robust financial position with ample cash flow and a stable gearing ratio Revenue Total Revenue (million RMB) | Metric | H1 2025 (million RMB) | H1 2024 (million RMB) | Growth (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 1,338.8 | 1,249.1 | 7.2 | - The increase in revenue was primarily due to the Group's successful capture of market opportunities and active promotion of rapid development in product categories, online channels, and the pet business[42] Revenue by Product Category Revenue by Product Category (thousand RMB) | Product Category | H1 2025 (thousand RMB) | Share (%) | H1 2024 (thousand RMB) | Share (%) | Growth (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Home Care | 1,214,162 | 90.7 | 1,163,557 | 93.1 | 4.3 | | Pet Stores and Pet Products | 95,955 | 7.2 | 47,633 | 3.8 | 101.4 | | Personal Care | 25,776 | 1.9 | 34,752 | 2.8 | -25.8 | | Others | 2,914 | 0.2 | 3,194 | 0.3 | -8.8 | Revenue by Sales Channel Revenue by Sales Channel (thousand RMB) | Sales Channel | H1 2025 (thousand RMB) | Share (%) | H1 2024 (thousand RMB) | Share (%) | Growth (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Online Channels | 517,189 | 38.6 | 405,854 | 32.5 | 27.4 | | Offline Channels | 821,618 | 61.4 | 843,282 | 67.5 | -2.6 | Gross Profit and Gross Margin Gross Profit and Gross Margin (million RMB) | Metric | H1 2025 (million RMB) | H1 2024 (million RMB) | Growth (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 659.8 | 579.0 | 14.0 | | Gross Margin | 49.3% | 46.4% | 2.9 percentage points | - The improvement in gross margin was primarily due to the Group's enhanced brand influence, continuous optimization of category and channel structures, and ongoing improvement in supply chain operational efficiency[47] Gross Profit and Gross Margin by Product Category Gross Profit and Gross Margin by Product Category (thousand RMB, %) | Product Category | H1 2025 Gross Profit (thousand RMB) | H1 2025 Gross Margin (%) | H1 2024 Gross Profit (thousand RMB) | H1 2024 Gross Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Home Care | 595,839 | 49.1 | 540,137 | 46.4 | | Pet Stores and Pet Products | 55,761 | 58.1 | 23,601 | 49.5 | | Personal Care | 10,340 | 40.1 | 14,716 | 42.3 | | Others | -2,155 | -74.0 | 557 | 17.4 | Gross Profit and Gross Margin by Sales Channel Gross Profit and Gross Margin by Sales Channel (thousand RMB, %) | Sales Channel | H1 2025 Gross Profit (thousand RMB) | H1 2025 Gross Margin (%) | H1 2024 Gross Profit (thousand RMB) | H1 2024 Gross Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Online Channels | 309,956 | 59.9 | 220,644 | 54.4 | | Offline Channels | 349,829 | 42.6 | 358,367 | 42.5 | Other Income Other Income (million RMB) | Metric | H1 2025 (million RMB) | H1 2024 (million RMB) | Decrease (%) | | :--- | :--- | :--- | :--- | | Other Income | 55.3 | 60.0 | 7.8 | - The decrease in other income was primarily due to lower bank interest[53] Selling and Distribution Expenses Selling and Distribution Expenses (million RMB) | Metric | H1 2025 (million RMB) | H1 2024 (million RMB) | Growth (%) | | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 408.3 | 317.7 | 28.5 | - The increase in selling and distribution expenses was primarily due to the increased revenue scale of the Group's online channels and pet business, consistent with business growth[54] Administrative Expenses Administrative Expenses (million RMB) | Metric | H1 2025 (million RMB) | H1 2024 (million RMB) | Decrease (%) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 80.1 | 86.8 | 7.8 | - The decrease in administrative expenses was primarily due to improved overall operational efficiency and reduced impairment losses on goodwill[55] Other Gains and Losses - For the six months ended June 30, 2025, we recorded other gains of RMB 9.6 million, compared to other losses of RMB 11.7 million in the corresponding period of 2024, primarily related to changes in the fair value of the Group's investments and exchange rate fluctuations[56] Finance Costs - Our finance costs remained relatively stable, at RMB 0.7 million for the six months ended June 30, 2024, and RMB 1.2 million for the six months ended June 30, 2025[57] Profit Before Tax Profit Before Tax (million RMB) | Metric | H1 2025 (million RMB) | H1 2024 (million RMB) | Growth (%) | | :--- | :--- | :--- | :--- | | Profit Before Tax | 231.7 | 220.1 | 5.3 | Income Tax Expense Income Tax Expense and Effective Tax Rate (million RMB, %) | Metric | H1 2025 (million RMB) | H1 2024 (million RMB) | Growth (%) | | :--- | :--- | :--- | :--- | | Income Tax Expense | 60.6 | 44.2 | 37.1 | | Effective Tax Rate | 26.2% | 20.1% | 6.1 percentage points | - The increase in income tax expense was primarily due to higher profit before tax and the impact of the income tax rate; a subsidiary, as a qualified High-Tech Enterprise, enjoyed a preferential income tax rate of 15% since 2022, but as of June 30, 2025, its qualification renewal process was still ongoing, resulting in a higher tax rate of 25%[59] Profit for the Period Profit for the Period and Net Profit Margin (million RMB, %) | Metric | H1 2025 (million RMB) | H1 2024 (million RMB) | Decrease (%) | | :--- | :--- | :--- | :--- | | Profit for the Period | 171.1 | 175.9 | 2.7 | | Net Profit Margin | 12.8% | 14.1% | -1.3 percentage points | Operating Cash Flow Net Cash Outflow from Operating Activities (million RMB) | Metric | H1 2025 (million RMB) | H1 2024 (million RMB) | | :--- | :--- | :--- | | Net cash outflow from operating activities | 36.4 | 159.7 | - The decrease in net cash outflow from operating activities was due to our profit before tax of RMB 231.7 million, adjustments for non-cash and non-operating items, changes in working capital, and income tax paid[61] Capital Expenditure Capital Expenditure (million RMB) | Metric | H1 2025 (million RMB) | H1 2024 (million RMB) | Decrease (%) | | :--- | :--- | :--- | :--- | | Capital Expenditure | 18.2 | 19.6 | 7.1 | - Capital expenditure was primarily used for the acquisition of property, plant and equipment and right-of-use assets; we primarily fund capital expenditure through cash generated from operating activities[62] Financial Position - As of June 30, 2025, our cash and cash equivalents and time deposits amounted to RMB 2,650.0 million, with the majority denominated in RMB[63] Gearing Ratio Gearing Ratio (%) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gearing Ratio | 1.7% | 1.7% | - The gearing ratio, calculated as total interest-bearing debt (including current and non-current lease liabilities) divided by total equity multiplied by 100%, remained stable at 1.7% as of December 31, 2024, and June 30, 2025[64] Other Financial Information The Group holds an investment portfolio generating stable income with capital appreciation potential, employs sound funding and treasury policies, had no significant M&A activities during the reporting period, faces exchange rate fluctuation risks, has no pledged assets or significant contingent liabilities, and saw an increase in employees due to pet offline store expansion Significant Investments Held - The Group maintains an investment portfolio capable of generating stable income and possessing capital appreciation potential; the Group held no other significant investments whose fair value accounted for 5% or more of the Group's total assets as of December 31, 2024, and June 30, 2025, respectively[65] Funding and Treasury Policies - The Group adopts stable funding and treasury policies aimed at maintaining an optimal financial position, the most economical finance costs, and the lowest financial risks; the Group regularly reviews its funding requirements to ensure sufficient financial resources to support its current business operations and future investment and expansion plans[66] Material Acquisitions and Future Plans for Major Investments - For the six months ended June 30, 2025, the Group did not undertake any material acquisitions or disposals; furthermore, apart from the expansion plans disclosed in the "Future Plans and Use of Proceeds" section of the Company's prospectus dated February 26, 2021, the Group has no specific plans for major investments or acquisitions of significant capital assets or other businesses, but will continue to identify new business development opportunities[67] Exchange Rate Fluctuation Risk - The Group primarily operates in China, with most of its transactions settled in RMB; however, the Group faces foreign exchange risk mainly from deposits denominated in USD and HKD, closely monitors exchange rate movements, and reviews foreign exchange risk management strategies periodically, with the Board potentially considering hedging foreign exchange exposure to mitigate risk when appropriate[68] Pledge of Assets - As of June 30, 2025, and December 31, 2024, the Group had no pledged assets[69] Contingent Liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[70] Human Resources Number of Employees | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Number of Employees | 1,321 | 1,140 | - The increase in the number of employees was primarily due to the expansion of the pet offline store business; total staff costs (including basic wages and salaries, social insurance, and bonuses) remained relatively stable at RMB 112.1 million and RMB 111.6 million for the six months ended June 30, 2024, and June 30, 2025, respectively[71] - The Company has adopted a share option scheme and a restricted share award scheme to attract, retain, and incentivize talented employees, and regularly organizes training activities for staff to maintain their quality, knowledge, and skill levels[71] Other Information Use of Proceeds from Global Offering The company obtained net proceeds of approximately RMB 2,418.8 million from the global offering, of which RMB 714.4 million had been utilized as of June 30, 2025, with the remaining RMB 1,704.4 million to be used according to the prospectus's disclosed purposes and timeline, primarily deposited in reputable banks in Hong Kong or mainland China Use of Proceeds from Global Offering (million RMB) | Item | Net proceeds from Global Offering (million RMB) | Net unutilized as at December 31, 2024 (million RMB) | Actual net utilized during the reporting period (million RMB) | Actual net utilized as at June 30, 2025 (million RMB) | Net unutilized as at June 30, 2025 (million RMB) | Expected timeline for full utilization | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | New product R&D, existing product upgrades, and new brand and category development | 171.8 | 84.4 | 13.8 | 101.2 | 87.4 | Before end of 2026 | | Promote construction and upgrade of relevant R&D centers and support their research activities | 246.7 | 246.7 | – | – | 246.7 | Before end of 2026 | | Incentivize existing researchers and recruit more experienced and talented personnel for our R&D team | 65.3 | 65.3 | – | – | 65.3 | Before end of 2026 | | Further develop online distribution channels | 241.9 | – | – | 241.9 | – | Not applicable | | Further strengthen our offline distribution network | 120.9 | 91.3 | 16.9 | 46.5 | 74.4 | Before end of 2026 | | Establish and optimize our overseas online and offline sales network and develop new markets | 120.9 | 120.9 | – | – | 120.9 | Before end of 2026 | | Increase our market penetration in lower-tier cities | 120.9 | 110.7 | – | 10.2 | 110.7 | Before end of 2026 | | Invest in online brand marketing activities to enhance brand and product awareness and educate consumers | 241.9 | 124.8 | 29.4 | 146.5 | 95.4 | Before end of 2026 | | Establish overseas supply chain to enhance our cost advantage in overseas business | 36.3 | 36.3 | – | – | 36.3 | Before end of 2026 | | Upgrade our existing production facilities and production lines at Anfu and Panyu bases, establish new production lines to increase capacity and efficiency | 36.3 | 36.3 | – | – | 36.3 | Before end of 2026 | | Establish a supply chain base in Shanghai, including a warehouse and logistics center and offices | 169.3 | 169.3 | – | – | 169.3 | Before end of 2026 | | Deepen our digitalization strategy, strengthen IT infrastructure, further develop technology and data-driven business middle platforms for supply chain management, consumer community, and proprietary platform operations and distribution channel management to improve operational efficiency | 241.9 | 232.4 | 1.3 | 10.8 | 231.1 | Before end of 2026 | | Strategic acquisitions of upstream and downstream businesses to acquire external high-quality, complementary technologies, brands, and businesses | 362.8 | 188.7 | – | 174.1 | 188.7 | Before end of 2026 | | Working capital and other general corporate purposes | 241.9 | 241.9 | – | – | 241.9 | Before end of 2026 | | Total | 2,418.8 | 1,765.8 | 61.4 | 714.4 | 1,704.4 | | Interim Dividend and Closure of Register of Members The Board resolved to declare an interim dividend of RMB 0.0521 per share, with a 40.0% payout ratio, payable on or about October 9, 2025; the company will suspend share transfer registration to determine eligibility for the interim dividend Interim Dividend Information (per share RMB) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Interim Dividend (per share RMB) | 0.0521 | 0.0538 | | Payout Ratio | 40.0% | 40.0% | - The interim dividend will be paid on or about Thursday, October 9, 2025, to shareholders of the Company whose names appear on the register of members of the Company on Tuesday, September 16, 2025 (the record date)[75] - The Company will suspend the registration of share transfers from Friday, September 12, 2025, to Tuesday, September 16, 2025 (both dates inclusive), to determine eligibility for the interim dividend[76] Corporate Governance The company has adopted the HKEX Corporate Governance Code and complied with all applicable code provisions during the reporting period; the roles of Chairman and CEO are combined under Ms. Chen Danxia, which the Board believes ensures leadership consistency and strategic planning, with sufficient independent non-executive directors to safeguard shareholder interests - The Company has adopted 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 as its own corporate governance code; during the reporting period, the Company has complied with all applicable code provisions under the Corporate Governance Code in effect during the reporting period[77] - The Company does not distinguish between the Chairman and the Chief Executive Officer, with both responsibilities undertaken by Ms. Chen Danxia; the Board believes that combining the roles of Chairman and Chief Executive Officer in the same person facilitates leadership consistency within the Group and enables more effective and efficient overall strategic planning for the Group[78] - Out of a total of eight directors on the Board, three are independent non-executive directors, ensuring the Board has sufficient independent opinions to protect the overall interests of the Company and its shareholders[78] Standard Code for Securities Transactions The company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules, and all directors confirmed compliance with the code during the reporting period - 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 as its own code of conduct regarding directors' securities transactions since the listing date; following specific inquiries, all directors confirmed that they have complied with the required standards set out in the Standard Code throughout the reporting period[79] Purchase, Sale or Redemption of the Company's Shares During the reporting period, the company held no treasury shares and did not engage in any purchase, sale, or redemption of its listed securities - During the reporting period, the Company held no treasury shares; during the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities (including the sale of treasury shares)[80] Public Float As of the date of this announcement, the company's public float is sufficient to meet the Listing Rules' requirement of at least 25% - Based on publicly available information and to the best knowledge of the Directors, as of the date of this announcement, the Company's public float is sufficient to meet the requirements of the Listing Rules, with at least 25% of the total issued shares of the Company held by the public[81] Events After Reporting Period No significant events occurred after the reporting period - No significant events occurred after the reporting period[82] Audit Committee The Audit Committee, comprising three independent non-executive directors and one non-executive director, has reviewed the Group's accounting principles, practices, and unaudited condensed consolidated financial statements, which were also reviewed by the independent auditor - The Board has established an Audit Committee, comprising three independent non-executive directors, namely Mr. Chen Hongjun (Chairman), Mr. Guo Sheng, and Dr. Yu Rong, and one non-executive director, namely Mr. Chen Zexing[83] - The Audit Committee, together with the Company's senior management, has reviewed the accounting principles and practices adopted by the Group, as well as the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025[83] - The Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025, have also been reviewed by the Company's independent auditor, Deloitte Touche Tohmatsu, in accordance with Hong Kong Standard on Review Engagements 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Hong Kong Institute of Certified Public Accountants[83] Publication of Interim Results and Interim Report This interim results announcement has been published on the HKEX and company websites, and the interim report containing all required information will be dispatched to shareholders and published on the websites in accordance with Listing Rules requirements - This interim results announcement is published on the HKEX website www.hkexnews.hk and the Company's website www.cheerwin.com[84](index=84&type=chunk) - The Company's interim report for the six months ended June 30, 2025, containing all information required by the Listing Rules, will be dispatched to shareholders upon request and published on the HKEX and the Company's websites in accordance with the Listing Rules[84]