汇通达网络(09878) - 2025 - 中期业绩

Announcement Information Announcement Statement and Company Overview This announcement presents the unaudited consolidated interim results of Huitongda Network Co., Ltd. for the six months ended June 30, 2025, prepared in accordance with Listing Rules and IAS 34, and reviewed by the Audit Committee - Huitongda Network Co., Ltd. (Stock Code: 9878) released its interim results announcement for the six months ended June 30, 2025[2] - These unaudited consolidated interim results are prepared in accordance with applicable Listing Rules and IAS 34, and have been reviewed by the Audit Committee[3] Business Review Overall Operating Performance and Strategic Transformation Facing a complex and severe external environment, the Group steadfastly advanced its "Quality and Efficiency Improvement, Innovative Development" strategy, successfully transitioning from pursuing scale expansion to focusing on enhancing development quality and profitability, achieving record highs in multiple core financial indicators, and generating AI-related revenue from scratch - The Group steadfastly advanced its "Quality and Efficiency Improvement, Innovative Development" strategy, successfully transitioning from pursuing scale expansion to focusing on enhancing development quality and profitability[5] - Gross profit margin, net profit margin, and net profit margin attributable to owners of the parent company all reached the Group's historical best levels[5] - AI-related revenue achieved significant results from scratch[5] Key Financial Indicators for the Six Months Ended June 30, 2025 | Indicator | 2025 (RMB Thousand) | 2024 (RMB Thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 24,341,934 | 32,855,766 | (25.9%) | | Gross Profit | 1,129,873 | 1,142,231 | (1.1%) | | Gross Profit Margin | 4.6% | 3.5% | +31.4% | | Operating Profit | 356,122 | 307,310 | +15.9% | | Profit for the Period | 238,600 | 229,269 | +4.1% | | Profit Attributable to Equity Holders of the Company | 138,606 | 125,087 | +10.8% | | Net Cash from Operating Activities | 412,551 | 248,976 | +65.7% | Self-Operated Trading Business and Smart Supply Chain Upgrade Self-operated trading business revenue decreased by 26.0% year-on-year, primarily due to strategic optimization of inefficient businesses, but revenue structure continued to improve with an increased proportion of member retail store revenue. The Group launched three major smart supply chain initiatives, deepened cooperation with leading brands, and achieved a significant 203.3% growth in consumer electronics O2O business - Revenue from the self-operated trading business segment was RMB 23.96 billion, a year-on-year decrease of 26.0%, mainly due to strategic upgrades focusing on quality and efficiency improvement, and proactive optimization of some inefficient businesses[8] - The proportion of revenue from member retail stores further increased to 47.4%, reflecting enhanced "short-chain" capabilities[8] - On February 28, 2025, three major smart supply chain initiatives were upgraded and launched: "Brand Direct Express Project," "Private Brand Ecosystem Project," and "Open Smart Supply Chain Project"[8] - In the consumer electronics industry, a cumulative total of 1,804 Apple O2O stores were expanded, with O2O business scale growing by 203.3% year-on-year[8] AI+SaaS Product Implementation and Customer Operation Effectiveness The Group focused on the "AI+SaaS" core track, launching the "Qiancheng AI Super Store Manager" APP, integrating AI Agent functions, achieving an average improvement of over 30% in store operating efficiency. AI-related revenue accounted for approximately 20% of total service revenue, and private brand sales grew by 490.7% year-on-year, while continuously expanding new categories and channels - The "Qiancheng AI Super Store Manager" APP was officially launched in April 2025, fully integrating AI Agent function modules, capable of automatically completing 60% of daily store management tasks[9] - AI+SaaS products entered the commercialization stage in May 2025, with member retail stores adopting AI tools achieving an average operating efficiency improvement of over 30% and inventory turnover shortened by 15% to 20%[9] - During the reporting period, AI-related revenue accounted for approximately 20% of total service revenue[9] - In the first half of 2025, private brand sales exceeded RMB 80 million, a year-on-year increase of 490.7%[10] - Service business segment revenue was RMB 312 million, with over 251,000 registered member retail stores and over 35,000 paying SaaS+ users[11] AI Technology Strengthening and Ecosystem Cooperation The Group launched its "AI+ Strategy" ("One Cloud + Three Projects"), including the "Qiancheng Cloud AI" industry large model, AI+ Industry Platform Project, AI+ SaaS Service Project, and AI+ Smart Terminal Project. In August 2025, it achieved comprehensive full-stack AI cooperation with Alibaba Cloud to jointly build an AI+ industry new ecosystem in the sinking market - In the first half of 2025, the Group launched its AI+ Strategy, summarized as "One Cloud + Three Projects"[12] - The "Qiancheng Cloud AI" industry large model passed the national cyberspace administration's filing in May 2025, becoming one of the few vertical large models in China capable of adapting to rural commercial scenarios[12] - In August 2025, a comprehensive full-stack AI cooperation was established with Alibaba Cloud to jointly explore innovation and application prospects for artificial intelligence and digitalization solutions[13] - The two parties will jointly build a matrix of "Small Store Large Model Intelligent Agent," "AI Sales Intelligent Agent," "Sales Prediction Intelligent Agent," and "AI Customer Service Robot" to enhance the intelligent service capabilities of the S2b2c supply chain[13] Corporate Influence and Organizational Capability Building The Group actively practiced the rural revitalization strategy, fulfilled social responsibilities, gained recognition from government and society, and was honored as a "National Key Software Enterprise." Concurrently, it continuously optimized its organizational structure and talent mechanisms, providing a solid guarantee for long-term strategic goals - The Group actively practiced the rural revitalization strategy, fulfilled social responsibilities, and received full attention and recognition from governments at all levels and various sectors of society[14] - In the first half of 2025, the Company was honored as a "National Key Software Enterprise," "High-tech Enterprise," and was again listed on the "Fortune China 500" list[14] - Continuously optimized organizational structure, front-to-back office personnel ratio, improved organizational and talent mechanisms, strengthened cadre echelon building, one-position rotation, cadre rejuvenation, and key talent reserves[15] Future Outlook and Strategic Focus The Group will continue to implement the "Quality and Efficiency Improvement, New Growth" policy, focusing on smart supply chain capability building, expanding new categories and channels, and deepening AI empowerment for member retail stores. Concurrently, it will adhere to the "Industrial Development + Capital Operation" dual-driven strategy, enhancing competitiveness through M&A, and is confident in achieving steady improvements in gross profit margin and net profit margin - In the second half of 2025, the Group will continue to implement the basic policy of "Quality and Efficiency Improvement, New Growth"[16] - Focus on smart supply chain capability building, expanding new categories (such as smart small home appliances, AI consumer electronics, robots, and elderly care health) and new channels (online, cross-border export, government, and enterprise procurement)[16] - Deepen comprehensive full-stack AI cooperation with Alibaba Cloud, accelerate AI Agent research and development and commercialization, and drive service revenue growth powered by AI+SaaS[17] - Adhere to the "Industrial Development + Capital Operation" dual-driven strategy, focusing on high-value "supply chain-type, channel network-type, AI-type" quality enterprise acquisitions[18] - The Group is confident in achieving steady improvements in gross profit margin and net profit margin in 2025, and plans to complete the capital reserve to cover losses, creating conditions for shareholder dividends[18] Financial Performance Analysis Revenue Analysis The Group's total revenue decreased by 25.9% year-on-year to RMB 24.34 billion, primarily due to strategic adjustments in the second half of 2024, optimization of inefficient businesses, and a high base in the first half of 2024. Self-operated trading business revenue decreased by 26.0%, and service business revenue decreased by 18.4%, but SaaS+ subscription revenue grew by 22.7% quarter-on-quarter - The Group's revenue decreased by 25.9% year-on-year to RMB 24,341.9 million, mainly due to strategic adjustments, optimization of inefficient businesses, and a high base in the first half of 2024[19] Revenue from Self-Operated Trading Business Segment (For the Six Months Ended June 30) | Product Category | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Consumer Electronics Products | 14,625,746 | 19,527,699 | | Home Appliances | 4,322,649 | 4,314,442 | | Agricultural Production Materials | 2,883,407 | 4,139,979 | | Transportation | 1,087,988 | 2,885,142 | | Home Furnishing and Building Materials | 764,842 | 992,089 | | Alcoholic Beverages | 147,665 | 390,431 | | Others | 122,927 | 135,233 | | Total Self-Operated Trading Business Segment | 23,955,224 | 32,385,015 | - Self-operated trading business revenue decreased by 26.0%, mainly due to strategic upgrades, price declines in the consumer electronics industry, downturn in agricultural production materials market, fierce competition in new energy vehicles, and real estate cycle impacts[22] Revenue from Service Business Segment (For the Six Months Ended June 30) | Service Category | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Store SaaS+ Subscriptions | 250,332 | 306,849 | | Merchant Solutions | 61,223 | 77,650 | | Total Service Business Segment | 311,555 | 384,499 | - Store SaaS+ subscription revenue decreased by 18.4% year-on-year, but increased by 22.7% quarter-on-quarter compared to the second half of 2024, mainly due to AI system upgrade concessions[23] Cost of Revenue, Gross Profit, and Gross Profit Margin Analysis Cost of revenue decreased by 26.8% in line with revenue, gross profit remained largely flat, while gross profit margin significantly increased by 1.1 percentage points to 4.6%, a 31.4% year-on-year growth, primarily due to strategic upgrades, optimization of industry structure, and deepened brand cooperation - Cost of revenue decreased by 26.8% to RMB 23,212.1 million, mainly due to the decrease in revenue[24] - Gross profit remained largely flat, decreasing by 1.1% from RMB 1,142.2 million to RMB 1,129.9 million[24] - Gross profit margin increased by 1.1 percentage points from 3.5% to 4.6%, a year-on-year growth of 31.4%, mainly due to strategic upgrades, abandonment of inefficient businesses, and optimization of industry structure[24] Expense Analysis Selling and marketing expenses decreased by 19.2%, and administrative and other operating expenses decreased by 8.7%, both benefiting from cost reduction and efficiency improvement measures. However, impairment losses on trade and other receivables increased by 48.3%, mainly due to increased provision for expected credit losses on older receivables. R&D costs decreased by 23.4% due to the adoption of AI to accelerate R&D efficiency and slowing down the upgrade pace of some mature product lines - Selling and marketing expenses decreased by 19.2% to RMB 462.4 million, mainly due to a decrease in promotional service fees[26] - Administrative and other operating expenses decreased by 8.7% to RMB 146.2 million, mainly due to effective implementation of cost reduction and efficiency improvement measures[28] - Impairment losses on trade and other receivables increased by 48.3% to RMB 199.5 million, mainly due to increased provision for expected credit losses on some older receivables[29] - Research and development costs decreased by 23.4% to RMB 29.6 million, mainly due to attempts to use AI to accelerate R&D efficiency and slowing down the upgrade pace of some mature product lines[30] Other Income and Gains Other income decreased by 27.9%, primarily due to reduced government subsidies. Net other gains remained largely flat - Other income decreased by 27.9% to RMB 17.5 million, mainly due to a decrease in government subsidies[31] - Net other gains remained largely flat at RMB 46.5 million[32] Net Finance Costs Net finance costs increased from a net expense of RMB 34.7 million to a net expense of RMB 65.5 million, primarily due to a decrease in bank deposit interest rates - Net finance costs increased from a net expense of RMB 34.7 million to a net expense of RMB 65.5 million[33] - Primarily due to a decrease in bank deposit interest rates[33] Income Tax and Profit Income tax increased by 4.4% to RMB 46.7 million, with an effective tax rate of 16.4%. Profit attributable to equity holders of the Company increased by 10.8% to RMB 138.6 million, and profit for the period increased by 4.1% to RMB 238.6 million, primarily benefiting from improved gross profit margin and reduced expenses - Income tax increased by 4.4% to RMB 46.7 million, mainly due to an increase in profit before tax year-on-year[34] - The effective tax rate calculated on profit before tax for the six months ended June 30, 2025, was 16.4%[35] - Profit attributable to equity holders of the Company increased by 10.8% to RMB 138.6 million[36] - Profit for the period increased by 4.1% to RMB 238.6 million, mainly due to improved gross profit margin and significant reduction in expenses[37] Balance Sheet and Cash Flow Key Items Cash and cash equivalents significantly increased to RMB 3.96 billion, indicating ample working capital. Inventory remained largely flat with a turnover period of 16 days. Trade payables and bills payable increased by 14.3%, mainly due to enhanced supply chain capabilities and seasonal procurement. Prepayments, deposits, and other receivables increased by 9.1%, primarily affected by seasonal stocking. Capital expenditures increased due to property decoration and equipment purchases - Cash and cash equivalents increased to RMB 3,961.4 million, indicating the Group has ample working capital[38] - Inventory remained largely flat at RMB 2,051.2 million, with an inventory turnover period of 16 days[39][40] - Trade payables and bills payable increased by 14.3% to RMB 16,732.3 million, mainly due to enhanced supply chain capabilities and seasonal procurement impacts[41] - Prepayments, deposits, and other receivables increased by 9.1% to RMB 9,883.3 million, mainly due to seasonal stocking in some industries[42] - Capital expenditures increased to RMB 18.4 million, mainly due to increased property decoration and equipment purchases[43] Employees and Material Investments As of June 30, 2025, the Group employed 3,633 staff, with remuneration based on employee performance and market levels. There were no material investments, acquisitions, or disposals of subsidiaries, associates, and joint ventures during the reporting period - As of June 30, 2025, the Group employed 3,633 staff, with remuneration determined by employee performance and market salary levels[44] - For the six months ended June 30, 2025, the Group had no material investments, material acquisitions, or disposals of subsidiaries, associates, and joint ventures[45] Financial Statements Consolidated Statement of Profit or Loss (Unaudited) This consolidated statement of profit or loss presents the Group's unaudited financial performance for the six months ended June 30, 2025, including key indicators such as revenue, gross profit, operating profit, and profit attributable to equity holders of the Company Consolidated Statement of Profit or Loss (Unaudited) for the Six Months Ended June 30, 2025 | Indicator | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Revenue | 24,341,934 | 32,855,766 | | Cost of Revenue | (23,212,061) | (31,713,535) | | Gross Profit | 1,129,873 | 1,142,231 | | Operating Profit | 356,122 | 307,310 | | Profit for the Period | 238,600 | 229,269 | | Profit Attributable to Equity Holders of the Company | 138,606 | 125,087 | | Basic Earnings Per Share (RMB) | 0.24 | 0.23 | | Diluted Earnings Per Share (RMB) | 0.24 | 0.23 | Consolidated Statement of Profit or Loss and Other Comprehensive Income (Unaudited) This consolidated statement of profit or loss and other comprehensive income shows the Group's profit for the period and other comprehensive income for the six months ended June 30, 2025, primarily including exchange differences on translating financial statements of subsidiaries with functional currencies other than RMB Consolidated Statement of Profit or Loss and Other Comprehensive Income (Unaudited) for the Six Months Ended June 30, 2025 | Indicator | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Profit for the Period | 238,600 | 229,269 | | Other Comprehensive Income for the Period (Net of Tax) | (19) | 29 | | Total Comprehensive Income for the Period | 238,581 | 229,298 | | Total Comprehensive Income Attributable to Equity Holders of the Company | 138,587 | 125,116 | Consolidated Statement of Financial Position (Unaudited) This consolidated statement of financial position presents the Group's assets, liabilities, and equity as of June 30, 2025, reflecting major components such as non-current assets, current assets, current liabilities, and net assets Consolidated Statement of Financial Position (Unaudited) as of June 30, 2025 | Indicator | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Non-current Assets | 2,403,968 | 2,698,152 | | Current Assets | 28,646,390 | 25,792,988 | | Current Liabilities | 21,003,937 | 18,631,008 | | Net Current Assets | 7,642,453 | 7,161,980 | | Total Assets Less Current Liabilities | 10,046,421 | 9,860,132 | | Non-current Liabilities | 210,863 | 249,632 | | Net Assets | 9,835,558 | 9,610,500 | | Total Equity Attributable to Equity Holders of the Company | 7,935,686 | 7,787,230 | | Total Equity | 9,835,558 | 9,610,500 | Condensed Consolidated Statement of Cash Flows (Unaudited) This condensed consolidated statement of cash flows outlines the Group's cash flow situation for the six months ended June 30, 2025, including net cash from operating, investing, and financing activities, as well as cash and cash equivalents at the end of the period Condensed Consolidated Statement of Cash Flows (Unaudited) for the Six Months Ended June 30, 2025 | Indicator | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 412,551 | 248,976 | | Net Cash from / (Used in) Investing Activities | 731,789 | (1,006,909) | | Net Cash from Financing Activities | 35,874 | 482,645 | | Net Increase / (Decrease) in Cash and Cash Equivalents | 1,180,214 | (275,288) | | Cash and Cash Equivalents at End of Period | 3,961,416 | 3,473,509 | Notes to the Financial Statements General Information and Basis of Preparation The Company was established in China in 2010 and listed on the HKEX in 2022, primarily engaged in commodity sales and smart commercial services. The interim financial information is unaudited, prepared in accordance with HKEX Listing Rules and IAS 34, and approved for issue on August 28, 2025 - Huitongda Network Co., Ltd. was established in China on December 6, 2010, and its H shares were listed on the Main Board of the Hong Kong Stock Exchange on February 18, 2022[51] - The Group is primarily engaged in the sale of a full range of commodities and provides smart commercial and marketing subscription services, merchant solutions, and other related services in China[51] - This unaudited interim financial information is extracted from the Group's interim financial report for the six months ended June 30, 2025, prepared in accordance with the HKEX Listing Rules and International Accounting Standard 34[52] Changes in Accounting Policies The Group has applied the amendments to IAS 21 "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability," but it has no material impact on this interim report as no transactions in non-exchangeable foreign currencies were conducted. No other new standards or interpretations not yet effective were applied in this period - The Group has applied the amendments to International Accounting Standard 21 "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability" to the interim financial report for the current accounting period[54] - As the Group did not conduct any foreign currency transactions that are not exchangeable into other currencies, these amendments have no material impact on this interim report[54] Revenue and Segment Reporting The Group's revenue primarily derives from commodity sales, store SaaS+ subscriptions, merchant solutions, and other services, managed across three reportable segments: trading business, service business, and others, with gross profit as the basis for segment performance evaluation Disaggregation of Revenue from Contracts with Customers by Major Business Line (For the Six Months Ended June 30) | Business Line | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Revenue from Sales of Goods | 23,955,224 | 32,385,015 | | Revenue from Store SaaS+ Subscriptions | 250,332 | 306,849 | | Revenue from Merchant Solutions | 61,223 | 77,650 | | Revenue from Other Services | 75,155 | 86,252 | | Total | 24,341,934 | 32,855,766 | - The Group manages its businesses across three reportable segments: trading business, service business, and others[58][59][60][61] - The measure for reportable segment profit is gross profit[62] Reportable Segment Revenue and Profit (For the Six Months Ended June 30) | Segment | 2025 Revenue (RMB Thousand) | 2025 Profit (RMB Thousand) | 2024 Revenue (RMB Thousand) | 2024 Profit (RMB Thousand) | | :--- | :--- | :--- | :--- | :--- | | Trading Business | 23,955,224 | 809,938 | 32,385,207 | 757,003 | | Service Business | 311,555 | 258,770 | 384,499 | 318,828 | | Others | 75,155 | 61,165 | 86,060 | 66,400 | | Total | 24,341,934 | 1,129,873 | 32,855,766 | 1,142,231 | Other Income and Net Other Gains (Notes) This note details the composition of other income, primarily government grants, and net other gains, including realized and unrealized net gains on financial assets measured at fair value through profit or loss, and net loss/gain on disposal of interests in subsidiaries Other Income (For the Six Months Ended June 30) | Item | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Government Grants | 16,970 | 23,564 | | Others | 489 | 653 | | Total | 17,459 | 24,217 | Net Other Gains (For the Six Months Ended June 30) | Item | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Realized and Unrealized Net Gains on Financial Assets Measured at Fair Value Through Profit or Loss | 46,251 | 39,429 | | Net (Loss) / Gain on Disposal of Interests in Subsidiaries | (547) | 2,477 | | Impairment Loss on Investment Properties | (2,000) | (3,414) | | Others | 3,006 | 8,684 | | Total | 46,475 | 46,522 | Profit Before Tax (Notes) This note details the composition of profit before tax, including net finance costs, cost of inventories recognized as an expense, depreciation expense, research and development costs, credit loss provision for trade and other receivables, and provision for inventory write-downs Net Finance Costs (For the Six Months Ended June 30) | Item | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Interest Income from Bank Deposits | (55,077) | (99,051) | | Interest Expense on Discounted Bills and Bank Loans | 118,697 | 131,707 | | Net Finance Costs | 65,474 | 34,714 | Other Items Deducted / (Credited) from Profit Before Tax (For the Six Months Ended June 30) | Item | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Cost of Inventories Recognized as an Expense | 23,108,531 | 31,589,704 | | Depreciation Expense (Total) | 28,998 | 33,003 | | Research and Development Costs | 29,573 | 38,586 | | Credit Loss Provision for Trade and Other Receivables | 199,542 | 134,468 | | Provision for Inventory Write-downs | 14,956 | 14,383 | Income Tax (Notes) This note provides the detailed composition of income tax, including current tax and deferred tax, and explains the basis for calculating China income tax and Hong Kong profits tax Income Tax (For the Six Months Ended June 30) | Item | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Current Tax (Provision for the Period) | 80,412 | 86,799 | | Deferred Tax (Origination and Reversal of Temporary Differences) | (33,685) | (42,046) | | Total | 46,727 | 44,753 | - China income tax provision is determined according to relevant China income tax rules and regulations, and Hong Kong profits tax provision is calculated at an estimated annual effective tax rate of 16.5%[69] Earnings Per Share (Notes) This note calculates the Company's basic and diluted earnings per share for the six months ended June 30, 2025, and lists the weighted average number of ordinary shares used in the calculation, including the impact of treasury shares and restricted share unit schemes - Basic earnings per share was RMB 0.24 (2024: RMB 0.23), and diluted earnings per share was RMB 0.24 (2024: RMB 0.23)[70][71] Weighted Average Number of Ordinary Shares at Period End for Basic Earnings Per Share (For the Six Months Ended June 30) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Ordinary Shares Issued at Beginning of Period | 562,569,837 | 562,569,837 | | Treasury Shares at Beginning of Period | (8,322,910) | (3,450,400) | | Effect of Repurchase of Own Shares | (29,825) | (4,504,354) | | Weighted Average Number | 554,217,102 | 554,615,083 | Weighted Average Number of Ordinary Shares at Period End for Diluted Earnings Per Share (For the Six Months Ended June 30) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Weighted Average Number of Ordinary Shares at Period End for Basic Earnings Per Share | 554,217,102 | 554,615,083 | | Effect of Outstanding Shares under Restricted Share Unit Scheme | – | 261,330 | | Diluted Earnings Weighted Average Number | 554,217,102 | 554,876,413 | Financial Assets Measured at Fair Value Through Profit or Loss This note details the Group's financial assets measured at fair value through profit or loss, including unlisted investments (primarily equity in technology and new energy industry companies) and structured deposits and wealth management products issued by various Chinese financial institutions Financial Assets Measured at Fair Value Through Profit or Loss (As of June 30, 2025, and December 31, 2024) | Item | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Unlisted Investments (Non-current Portion) | 386,648 | 386,308 | | Structured Deposits and Wealth Management Products (Non-current Portion) | 350,870 | 573,047 | | Structured Deposits and Wealth Management Products (Current Portion) | 3,882,366 | 3,516,166 | | Total | 4,619,884 | 4,475,521 | - Unlisted investments represent the Group's equity interests in companies primarily engaged in the technology and new energy industries[73] Inventories (Notes) This note provides the detailed composition of inventories, including goods and goods in transit, and provision for inventory write-downs. As of June 30, 2025, some inventories were pledged as collateral for bills payable and bank loans Inventories (As of June 30, 2025, and December 31, 2024) | Item | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Goods | 2,049,373 | 2,000,080 | | Goods in Transit | 104,488 | 126,446 | | Inventory Write-downs | (102,663) | (93,801) | | Total | 2,051,198 | 2,032,725 | - During the six months ended June 30, 2025, the Group recognized write-downs of RMB 14,956,000 for inventories where net realizable value was lower than carrying amount[75] - As of June 30, 2025, inventories of RMB 39,044,000 were pledged as collateral for bills payable, bank loans, and other borrowings[75] Trade and Bills Receivables This note provides the detailed composition of trade and bills receivables and their aging analysis, showing that most receivables are expected to be recovered within one year Trade and Bills Receivables (As of June 30, 2025, and December 31, 2024) | Item | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Trade Receivables | 1,961,112 | 1,875,132 | | Bills Receivable | 1,065,874 | 1,192,392 | | Less: Loss Provision | (114,677) | (68,310) | | Total | 2,912,309 | 2,999,214 | Aging Analysis of Trade and Bills Receivables (As of June 30, 2025, and December 31, 2024) | Aging | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Within 3 Months | 2,421,601 | 2,536,298 | | Over 3 Months but Within 12 Months | 370,499 | 191,498 | | Over 12 Months | 120,209 | 271,418 | | Total | 2,912,309 | 2,999,214 | Prepayments, Deposits, and Other Receivables This note lists the detailed composition of prepayments, recoverable VAT, refunds due from suppliers, and other receivables, net of loss provisions Prepayments, Deposits, and Other Receivables (As of June 30, 2025, and December 31, 2024) | Item | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Prepayments | 8,805,464 | 8,146,179 | | Recoverable VAT | 179,811 | 147,077 | | Refunds Due from Suppliers | 750,606 | 586,345 | | Amounts Due from Former Subsidiaries | 451,288 | 442,848 | | Interest Receivable | 59,306 | 63,482 | | Other Deposits and Receivables | 422,691 | 309,511 | | Less: Loss Provision | (785,880) | (639,104) | | Total | 9,883,286 | 9,056,338 | Cash and Cash Equivalents, Restricted Deposits, Pledged Deposits, and Time Deposits This note details the Group's bank cash, restricted deposits related to litigation, pledged deposits as collateral for bills payable and bank loans, and current and non-current time deposits Cash and Cash Equivalents (As of June 30, 2025, and December 31, 2024) | Item | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Bank Cash | 3,961,416 | 2,781,257 | Restricted Deposits (As of June 30, 2025, and December 31, 2024) | Item | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Restricted Deposits Related to Litigation | 160,979 | 173,523 | | Other Restricted Deposits | 2,523 | 2,587 | | Total | 163,502 | 176,110 | Pledged Deposits (As of June 30, 2025, and December 31, 2024) | Item | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Current Portion | 5,690,022 | 4,454,957 | | Non-current Portion | 1,050,000 | 780,000 | | Total | 6,740,022 | 5,234,957 | Time Deposits (As of June 30, 2025, and December 31, 2024) | Item | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Current Portion | 100,000 | 770,000 | | Non-current Portion | 100,000 | 470,000 | | Total | 200,000 | 1,240,000 | Trade and Bills Payables and Contract Liabilities This note details the composition and aging analysis of trade and bills payables, as well as the opening balance, decrease due to revenue recognition, and increase due to advance payments received for contract liabilities Trade and Bills Payables (As of June 30, 2025, and December 31, 2024) | Item | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Trade Payables | 1,060,405 | 1,070,684 | | Bills Payable | 15,671,915 | 13,566,101 | | Total | 16,732,320 | 14,636,785 | Aging Analysis of Trade and Bills Payables (As of June 30, 2025, and December 31, 2024) | Aging | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Within 3 Months | 8,065,723 | 7,628,373 | | 3 to 12 Months | 8,494,880 | 6,889,883 | | Over 12 Months | 171,717 | 118,529 | | Total | 16,732,320 | 14,636,785 | Contract Liabilities (As of June 30, 2025, and December 31, 2024) | Item | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Balance at Beginning of Year / Period | 2,256,326 | 2,426,677 | | Decrease in Contract Liabilities Due to Revenue Recognized from Opening Balance During Year / Period | (1,816,311) | (2,149,522) | | Increase in Contract Liabilities Due to Advance Payments Received During Year / Period | 1,899,826 | 2,091,724 | | Decrease in Contract Liabilities Due to Disposal of Interests in Subsidiaries | (2,491) | (112,553) | | Balance at End of Year / Period | 2,337,350 | 2,256,326 | Capital, Reserves, and Dividends This note states that the Board did not recommend an interim dividend. It details the grant, vesting conditions, and related expenses of the Restricted Share Unit Scheme, Employee Share Purchase Plan, and 2024 H Share Option Scheme, and reports on treasury shares repurchased during the period - The Company's directors did not recommend the payment of any dividends during the period[83] - The Restricted Share Unit Scheme was approved by shareholders on November 28, 2022, granting shares to directors, supervisors, and employees[84] - For the six months ended June 30, 2025, the total expense recognized in the consolidated statement of profit or loss for the Restricted Share Unit Scheme was RMB 5.672 million[86] - The 2024 H Share Option Scheme was approved by shareholders on November 12, 2024, and 18,000,000 share options were granted on May 21, 2025, with an exercise price of HKD 19.30[89] - For the six months ended June 30, 2025, the total expense recognized in the consolidated statement of profit or loss for the Share Option Scheme was RMB 3.895 million[90] - In January 2025, the Company repurchased 32,400 of its own shares for a total price of HKD 480,915 (approximately RMB 454,000), recognized as treasury shares[91] Other Information Securities Transactions and Dividend Policy During the reporting period, neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities, and no treasury shares were held at period-end. The Board did not recommend an interim dividend for the six months ended 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[92] - As of the end of the reporting period, the Company did not hold any treasury shares[93] - The Board did not recommend the payment of an interim dividend for the six months ended June 30, 2025[94] Corporate Governance and Audit The Company is committed to maintaining good corporate governance, complying with the Corporate Governance Code and the Model Code for Securities Transactions. The Audit Committee has reviewed the interim results and accounting principles, and the interim financial report has been reviewed by KPMG - The Company is committed to maintaining good corporate governance and has consistently complied with the code provisions of the Corporate Governance Code[95][96] - All directors and supervisors confirmed their compliance with the Model Code for Securities Transactions during the reporting period[97] - The Audit Committee has reviewed the Company's unaudited interim results for the six months ended June 30, 2025, and the accounting principles and practices adopted by the Group[98] - The interim financial report for the six months ended June 30, 2025, has been reviewed by KPMG[99] Post-Reporting Period Events and Report Publication As of the date of this announcement, no significant post-reporting period events affecting the Group have occurred. The interim results announcement and interim report will be published on the HKEX website and the Company's website in due course - No significant post-reporting period events affecting the Group occurred after June 30, 2025, and up to the date of this announcement[100] - This interim results announcement and the interim report containing all information required by the Listing Rules will be published on the HKEX website and the Company's website in due course[101] Definitions Terminology Definitions This section provides definitions for key terms used in this announcement to ensure readers have a clear understanding of the report's content - In this announcement, unless the context otherwise requires, definitions are provided for terms such as Audit Committee, Board, Corporate Governance Code, China, Company, Directors, Group, H Shares, HKD, Hong Kong, HKEX, Listing Rules, Model Code, Reporting Period, RMB, SaaS, Store SaaS+, Shareholders, Subsidiaries, Supervisors, and Percentage[102][104]