中关村科技租赁(01601) - 2025 - 中期业绩

Financial Summary Key Financial Data For the six months ended June 30, 2025, the company's revenue decreased by 1.4% to RMB 417.5 million, while profit before tax and profit for the period increased by 4.9% and 5.1% respectively, with total assets slightly down and shareholders' equity significantly up by 21.6% For the six months ended June 30, 2025, Financial Summary | Indicator | June 30, 2025 (RMB million) | Same Period in 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 417.5 | 423.6 | -1.4% | | Profit before tax | 192.1 | 183.2 | 4.9% | | Profit for the period | 144.3 | 137.3 | 5.1% | | Total assets (period-end) | 12,851.4 | 13,055.8 (year-end last year) | -1.6% | | Shareholders' equity (period-end) | 3,138.2 | 2,581.4 (year-end last year) | 21.6% | | Average return on equity | 10.1% | - | - | | Average return on assets | 2.2% | - | - | - For the six months ended June 30, 2025, revenue was approximately RMB 417.5 million, a decrease of approximately 1.4% compared to approximately RMB 423.6 million in the same period last year[3] - For the six months ended June 30, 2025, profit before tax was approximately RMB 192.1 million, an increase of approximately 4.9% compared to approximately RMB 183.2 million in the same period last year[3] - For the six months ended June 30, 2025, profit for the period was approximately RMB 144.3 million, an increase of approximately 5.1% compared to approximately RMB 137.3 million in the same period last year[3] - As of June 30, 2025, shareholders' equity was approximately RMB 3,138.2 million, an increase of approximately 21.6% compared to approximately RMB 2,581.4 million at the end of last year[3] Management Discussion and Analysis 1. Operating Review In the first half of 2025, despite global economic challenges, AI emerged as a growth engine, and the company achieved a 5.1% net profit growth, increased equity, and optimized asset quality through strategic transformation and enhanced risk control 1.1 Economic Landscape The first half of 2025 saw global economic slowdowns and geopolitical shifts, yet AI became a new growth driver, while China's GDP grew by 5.3% and "Two New" policies spurred leasing industry transformation - In the first half of 2025, global economic growth is projected to slow to 2.4% (from 2.9% in 2024), with global inflation at 3.6%, higher than initial forecasts[16] - AI is expected to drive global GDP growth by 0.5% annually between 2025 and 2030[16] - China's GDP reached RMB 66,053.6 billion in the first half, with a 5.3% year-on-year growth, and outstanding social financing increased by 8.9% year-on-year[17] - In the first half of 2025, the average interest rate for new corporate loans was approximately 3.3%, about 45 basis points lower than the same period last year[17] - The "Two New" policies (large-scale equipment renewal and trade-in of consumer goods) drove a 18.2% year-on-year increase in equipment purchase investment, transforming the leasing industry into a strategic partner for industrial upgrading[18] 1.2 Company's Response The company achieved a 5.1% net profit growth, increased total equity to RMB 3.14 billion, and significantly grew operating lease income by 325.6%, while optimizing asset quality and reducing financing costs through strategic initiatives - The company's net profit increased by 5.1% year-on-year, total equity rose to RMB 3.14 billion, and operating lease income grew by 325.6% year-on-year[19] - Non-performing asset ratio decreased to 1.1%, and provision coverage ratio increased to 241.2%, indicating steady optimization of asset quality[19] - In the first half, 6 new industry-finance integration projects were added, driving RMB 470 million in leasing placements, accounting for 13.5% of overall business[20] - For the first time, big data modeling was used to develop specialized rating models for intelligent manufacturing and operational clients, increasing the proportion of high-quality clients[21] - Successfully completed the first transfer of non-performing asset trust beneficiary rights, with over RMB 20 million recovered through collection and disposal[22] - In the first half, RMB 4.081 billion in debt financing was achieved, with interest expenses decreasing by 11.6% year-on-year, reaching a new low in financing costs[23] 1.3 Business Innovation The company signed strategic cooperation agreements with Hangjing Innovation and Yimu Technology, establishing asset operation platforms and committing RMB 500 million and RMB 300 million respectively over three years to support industry upgrades in drones and intelligent mining machinery - Signed a strategic cooperation agreement with Beijing Hangjing Innovation Technology Co., Ltd., jointly establishing an asset operation platform, with a planned RMB 500 million in funding support over the next three years to promote drone industry upgrading[24] - Signed a strategic cooperation agreement with Xiamen Yimu Zhihui Technology Co., Ltd., jointly establishing an asset operation platform, with a planned RMB 300 million in funding support over the next three years to drive the new energy and intelligent upgrading of the mining sector[25] 2. Profit and Loss Analysis During the reporting period, the Group's total revenue decreased by 1.4% to RMB 417.5 million, but net profit increased by 5.1% to RMB 144.3 million, driven by a significant rise in operating lease income and a reduction in interest expenses 2.1 Overview During the reporting period, the Group's total revenue was RMB 417.5 million, a 1.4% year-on-year decrease, while net profit for the period was RMB 144.3 million, a 5.1% year-on-year increase, reflecting continuous asset structure optimization and improved profitability - Total revenue was RMB 417.5 million, a 1.4% decrease compared to RMB 423.6 million in the same period last year[26] - Net profit for the period was RMB 144.3 million, a 5.1% increase compared to RMB 137.3 million in the same period last year[26] 2.2 Revenue The Group's total revenue decreased by 1.4% to RMB 417.5 million, with interest income accounting for 81.9% (down 6.5%), consulting fee income growing by 11.2% (14.4% share), and operating lease income significantly increasing by 325.6% (3.7% share) Revenue by Service Category and Changes | Revenue Category | 2025 (RMB thousand) | Proportion (%) | 2024 (RMB thousand) | Proportion (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Interest income | 342,005 | 81.9 | 365,865 | 86.4 | -6.5 | | Consulting fee income | 60,199 | 14.4 | 54,112 | 12.8 | 11.2 | | Operating lease income | 15,268 | 3.7 | 3,587 | 0.8 | 325.6 | | Total revenue | 417,472 | 100.0 | 423,564 | 100.0 | -1.4 | 2.2.1 Interest Income Interest income decreased by 6.5% year-on-year to RMB 342.0 million, representing 81.9% of total revenue, primarily due to intensified industry competition and a decline in average market interest rates, despite a 3.0% increase in average interest-bearing asset balance - Interest income decreased by 6.5% to RMB 342.0 million, accounting for 81.9% of total revenue[30] - Average balance of interest-bearing assets increased by 3.0% to RMB 11,446.9 million[31] - Average yield on interest-bearing assets decreased from 6.6% to 6.0%, mainly due to intensified industry competition and declining market interest rates[33] 2.2.2 Consulting Fee Income Consulting fee income increased by 11.2% year-on-year to RMB 60.2 million, representing 14.4% of total revenue, with both policy consulting fees and management and business consulting fees growing by approximately 11% - Consulting fee income increased by 11.2% to RMB 60.2 million, accounting for 14.4% of total revenue[34] Consulting Service Fee Income by Service Category | Service Category | 2025 (RMB thousand) | Proportion (%) | 2024 (RMB thousand) | Proportion (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Policy consulting fee income | 42,284 | 70.2 | 37,991 | 70.2 | 11.3 | | Management and business consulting fee income | 17,915 | 29.8 | 16,121 | 29.8 | 11.1 | | Total consulting fee income | 60,199 | 100.0 | 54,112 | 100.0 | 11.2 | 2.2.3 Operating Lease Income Operating lease income significantly increased by 325.6% year-on-year to RMB 15.3 million, representing 3.7% of total revenue, driven by the expansion of operating lease business - Operating lease income increased by 325.6% to RMB 15.3 million, accounting for 3.7% of total revenue[37] 2.3 Interest Expense Interest expense decreased by 11.6% year-on-year to RMB 129.4 million, primarily due to effective capital management and optimized debt structure, with commercial bank borrowing interest expense significantly down 46.1% while bond issuance interest expense rose 54.5% - Interest expense decreased by 11.6% to RMB 129.4 million, mainly due to capital position and financing cost management[38] Interest Expense by Funding Source | Funding Source | 2025 (RMB thousand) | Proportion (%) | 2024 (RMB thousand) | Proportion (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Commercial banks | 42,681 | 33.0 | 79,134 | 54.0 | -46.1 | | Bonds issued | 61,878 | 47.8 | 40,062 | 27.4 | 54.5 | | Interest-free security deposits from lessees | 24,673 | 19.1 | 26,757 | 18.3 | -7.8 | | Lease liabilities | 174 | 0.1 | 414 | 0.3 | -58.0 | | Total interest expense | 129,406 | 100.0 | 146,367 | 100.0 | -11.6 | - Borrowing interest expense cost rate decreased by 0.7 percentage points from 3.5% to 2.8%[43] 2.4 Net Interest Spread and Net Interest Margin During the reporting period, net interest spread was 3.0%, a 0.1 percentage point year-on-year decrease, and net interest margin was 3.7%, a 0.3 percentage point year-on-year decrease, mainly due to intensified industry competition and declining average market interest rates affecting interest-bearing asset yields Net Interest Margin and Related Data | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Interest income | 342,005 | 365,865 | -6.5 | | Interest expense | (129,406) | (146,367) | -11.6 | | Net interest income | 212,599 | 219,498 | -3.1 | | Interest income yield | 6.0% | 6.7% | -10.4 | | Interest expense cost rate | 3.0% | 3.6% | -16.7 | | Net interest spread | 3.0% | 3.1% | -3.2 | | Net interest margin | 3.7% | 4.0% | -7.5 | - Net interest spread was 3.0%, a 0.1 percentage point decrease from the same period last year; net interest margin was 3.7%, a 0.3 percentage point decrease from the same period last year[46] 2.5 Other Net Income Other net income significantly increased by 71.0% year-on-year to RMB 4.0 million, primarily driven by a substantial 1,009.5% growth in government grants - Other net income was RMB 4.0 million, a 71.0% increase from the same period last year, mainly due to an increase in government grants[48] Other Net Income Details | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Bank deposit interest income | 1,901 | 2,045 | -7.0 | | Government grants | 1,642 | 148 | 1,009.5 | | Other | 410 | 119 | 244.5 | | Total other net income | 3,953 | 2,312 | 71.0 | 2.6 Operating Expenses Operating expenses slightly increased by 1.8% year-on-year to RMB 69.8 million, with staff costs decreasing by 17.6%, depreciation and amortization significantly growing by 107.5%, and service expenses declining by 21.2% - Operating expenses were RMB 69.8 million, a 1.8% increase compared to the same period last year[52] Operating Expenses Details | Item | 2025 (RMB thousand) | Proportion (%) | 2024 (RMB thousand) | Proportion (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Staff costs | 30,824 | 44.2 | 37,387 | 54.5 | -17.6 | | Depreciation and amortization | 19,648 | 28.1 | 9,467 | 13.8 | 107.5 | | Service expenses | 12,232 | 17.5 | 15,519 | 22.7 | -21.2 | | Office and travel expenses | 2,209 | 3.2 | 2,278 | 3.3 | -3.0 | | Public maintenance fees | 866 | 1.2 | 981 | 1.4 | -11.7 | | Other | 4,025 | 5.8 | 2,908 | 4.3 | 38.4 | | Total operating expenses | 69,804 | 100.0 | 68,540 | 100.0 | 1.8 | 2.7 Impairment recognized under Expected Credit Loss model, net Net impairment losses recognized under the expected credit loss model increased by 9.8% year-on-year to RMB 33.8 million, primarily due to continuous enhancement of the risk control system and improved credit discovery capabilities, expanding client base while maintaining asset quality - Impairment losses under expected credit loss model were RMB 33.8 million, a 9.8% increase compared to the same period last year[56] Impairment recognized under Expected Credit Loss model, net details | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Loans and receivables | 33,790 | 30,774 | 9.8 | | Total impairment recognized under Expected Credit Loss model, net | 33,790 | 30,774 | 9.8 | 2.8 Income Tax Expense Income tax expense increased by 4.1% year-on-year to RMB 47.8 million, mainly due to higher profit before tax, with an effective tax rate of 24.9% for the reporting period - Income tax expense was RMB 47.8 million, a 4.1% increase compared to the same period last year, mainly due to increased profit before tax[59] - The effective income tax rate for the reporting period was 24.9%[60] 2.9 Profit for the Period Profit for the period increased by 5.1% year-on-year to RMB 144.3 million, primarily driven by a 11.6% reduction in interest expense, despite a 1.4% decrease in total revenue and a 1.8% increase in operating expenses, with future profitability expected to grow - Profit for the period was RMB 144.3 million, a 5.1% increase compared to the same period last year[61] - Profit growth was mainly due to a 11.6% decrease in interest expense, offsetting the 1.4% decrease in total revenue and 1.8% increase in operating expenses[61] - Future profitability is expected to continuously strengthen with enhanced capital strength, leasing business development, and improved digitalization capabilities[62] 2.10 Basic Earnings Per Share Basic earnings per share increased by RMB 0.01 year-on-year to RMB 0.11, primarily due to the Group's enhanced profitability - Basic earnings per share was RMB 0.11, an increase of RMB 0.01 compared to the same period last year[63] 3. Financial Position Analysis As of the end of the reporting period, the Group's total assets were RMB 12,851.4 million, a 1.6% decrease from the end of last year, with loans and receivables accounting for 83.0% and cash and cash equivalents for 9.4%; total liabilities decreased by 7.3%, and shareholders' equity significantly grew by 21.6% to RMB 3,138.2 million, mainly due to domestic share issuance 3.1 Assets (Overview) As of the end of the reporting period, the Group's total assets were RMB 12,851.4 million, a 1.6% decrease from the end of last year, with loans and receivables accounting for 83.0%, cash and cash equivalents for 9.4%, and property and equipment significantly increasing by 279.6% - Total assets were RMB 12,851.4 million, a 1.6% decrease from the end of last year[64] - Loans and receivables accounted for 83.0% of total assets, and cash and cash equivalents for 9.4%[64] Assets Analysis | Asset Category | June 30, 2025 (RMB thousand) | Proportion (%) | December 31, 2024 (RMB thousand) | Proportion (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Loans and receivables | 10,667,900 | 83.0 | 11,505,094 | 88.2 | -7.3 | | Cash and cash equivalents | 1,205,511 | 9.4 | 840,966 | 6.4 | 43.3 | | Property and equipment | 307,244 | 2.4 | 80,945 | 0.6 | 279.6 | | Total assets | 12,851,409 | 100.0 | 13,055,814 | 100.0 | -1.6 | 3.2 Loans and Receivables At the end of the reporting period, net loans and receivables were RMB 10,946.8 million, an 8.4% decrease from the end of last year, mainly due to the company's proactive industry focus; the non-performing asset ratio significantly decreased by 38.9% to 1.1%, and the provision coverage ratio increased by 33.7 percentage points to 241.2%, indicating overall stable asset quality - Net loans and receivables were RMB 10,946.8 million, an 8.4% decrease from the end of last year[67] - The non-performing asset ratio decreased from 1.8% to 1.1%, a 38.9% decrease[80] - The provision coverage ratio increased by 33.7 percentage points to 241.2%[83] 3.2.1 Maturity Profile of Loans and Receivables As of the end of the reporting period, net loans and receivables maturing within one year accounted for 60.9% of the total, indicating a balanced business placement pace and stable future cash inflows Maturity Profile of Net Loans and Receivables | Maturity Date | June 30, 2025 (RMB thousand) | Proportion (%) | December 31, 2024 (RMB thousand) | Proportion (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Within 1 year | 6,658,151 | 60.9 | 7,286,730 | 61.0 | -8.6 | | 1-2 years | 2,935,774 | 26.8 | 3,273,312 | 27.4 | -10.3 | | 2-3 years | 1,052,193 | 9.6 | 1,018,393 | 8.5 | 3.3 | | 3 years and above | 300,645 | 2.7 | 368,525 | 3.1 | -18.4 | | Net loans and receivables | 10,946,763 | 100.0 | 11,946,960 | 100.0 | -8.4 | - Net loans and receivables maturing within one year accounted for 60.9% of the total[72] 3.2.2 Asset Quality of Loans and Receivables The Group maintained prudent risk management, improving asset management efficiency through industry focus, business model transformation, and enhanced risk control strategies, resulting in a significant 45.7% decrease in the non-performing asset ratio to 1.1% and a substantial reduction in sub-standard and loss assets - The non-performing asset ratio decreased from 1.8% to 1.1%, a 38.9% decrease[80] - Sub-standard assets decreased by 60.4%, loss assets decreased by 98.0%, and doubtful assets increased by 73.7%[80] - Actively implemented the "leasing + investment + service" business model and improved the industry-finance integration business model[76] - Successfully conducted the first transfer of non-performing asset trust beneficiary rights, enhancing non-performing asset disposal capabilities[78] Net Loans and Receivables Classification Details | Classification | June 30, 2025 (RMB thousand) | Proportion (%) | December 31, 2024 (RMB thousand) | Proportion (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Normal | 9,942,780 | 90.9 | 10,854,839 | 90.8 | -8.4 | | Special mention | 888,380 | 8.1 | 879,156 | 7.4 | 1.0 | | Sub-standard | 15,799 | 0.1 | 39,898 | 0.3 | -60.4 | | Doubtful | 97,418 | 0.9 | 56,084 | 0.5 | 73.7 | | Loss | 2,386 | 0.0 | 116,983 | 1.0 | -98.0 | | Non-performing assets | 115,603 | - | 212,965 | - | -45.7 | | Non-performing asset ratio | 1.1% | - | 1.8% | - | -38.9 | 3.2.3 Impairment and Provision for Loans and Receivables Provisions for interest-bearing assets decreased by RMB 163.0 million to RMB 278.9 million, while the provision coverage ratio for loans and receivables increased by 33.7 percentage points to 241.2%, with Stage 1 assets increasing and Stage 2 decreasing - Provisions for interest-bearing assets decreased from RMB 441.9 million to RMB 278.9 million[81] - The provision coverage ratio for loans and receivables was 241.2%, an increase of 33.7 percentage points from the end of last year[83] - Stage 1 assets accounted for 90.5% (up 0.6 percentage points), Stage 2 for 0.5% (down 0.6 percentage points), and Stage 3 remained flat at 9.0%[83] Overall Provision for Loans and Receivables | Item | June 30, 2025 (RMB thousand) | Proportion (%) | December 31, 2024 (RMB thousand) | Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | Provision for non-performing assets | 97,378 | 34.9 | 199,040 | 45.0 | | Provision for normal and special mention assets | 181,485 | 65.1 | 242,826 | 55.0 | | Total provisions | 278,863 | 100.0 | 441,866 | 100.0 | | Non-performing assets | 115,603 | - | 212,965 | - | | Provision coverage ratio | 241.2% | - | 207.5% | - | 3.3 Other Assets As of the end of the reporting period, cash and cash equivalents were RMB 1,205.5 million, restricted deposits RMB 70.1 million, accounts receivable RMB 8.2 million, trade and other assets RMB 131.8 million, deferred income tax assets RMB 117.9 million, property and equipment RMB 307.2 million, and investments in associates RMB 305.2 million, with other financial and intangible assets being relatively small - Cash and cash equivalents were RMB 1,205.5 million, and restricted deposits were RMB 70.1 million[88] - Accounts receivable balance was RMB 8.2 million, and trade and other assets balance was RMB 131.8 million[88] - Property and equipment balance was RMB 307.2 million, mainly operating lease assets[88] - Investments in associates balance was RMB 305.2 million[89] 3.4 Liabilities As of the end of the reporting period, total liabilities were RMB 9,713.2 million, a 7.3% decrease from the end of last year, with borrowings being the main component, accounting for 76.6% and slightly increasing - Total liabilities were RMB 9,713.2 million, a 7.3% decrease from the end of last year[91] - Borrowings accounted for 76.6% of total liabilities, a slight increase from 76.5% at the end of last year[91] Liabilities Analysis | Liability Category | June 30, 2025 (RMB thousand) | Proportion (%) | December 31, 2024 (RMB thousand) | Proportion (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Borrowings | 7,436,027 | 76.6 | 8,008,224 | 76.5 | -7.1 | | Trade and other liabilities | 2,264,923 | 23.3 | 2,443,414 | 23.3 | -7.3 | | Income tax payable | 12,293 | 0.1 | 22,801 | 0.2 | -46.1 | | Total liabilities | 9,713,243 | 100.0 | 10,474,439 | 100.0 | -7.3 | 3.5 Borrowings As of the end of the reporting period, total borrowings were RMB 7,436.0 million, a 7.1% decrease from the end of last year, with bank loans decreasing to 31.4%, asset-backed securities increasing to 56.4%, and credit bonds slightly decreasing; the company successfully issued three tranches of asset securitization products and one tranche of ultra-short-term financing bonds, achieving new lows in financing costs and actively diversifying financing channels - Total borrowings were RMB 7,436.0 million, a 7.1% decrease from the end of last year[94] - Bank loans accounted for 31.4% of total borrowings (decrease), asset-backed securities for 56.4% (increase), and credit bonds for 12.2% (slight decrease)[96] - Issued three tranches of asset securitization products raising RMB 1.6 billion, and one tranche of ultra-short-term financing bonds raising RMB 400 million, with financing costs reaching new lows[96] Borrowings by Funding Source | Funding Source | June 30, 2025 (RMB thousand) | Proportion (%) | December 31, 2024 (RMB thousand) | Proportion (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Bank loans | 2,334,814 | 31.4 | 3,344,993 | 41.7 | -30.2 | | Asset-backed securities | 4,192,205 | 56.4 | 3,656,920 | 45.7 | 14.6 | | Credit bonds | 909,008 | 12.2 | 1,006,311 | 12.6 | -9.7 | | Total borrowings | 7,436,027 | 100.0 | 8,008,224 | 100.0 | -7.1 | 3.6 Trade and Other Liabilities Total trade and other liabilities were RMB 2,264.9 million, a 7.3% decrease from the end of last year, primarily comprising security deposits from lessees, accounts payable, and bills payable - Total trade and other liabilities were RMB 2,264.9 million, a 7.3% decrease from the end of last year[99] 3.7 Capital and Reserves Total shareholders' equity was RMB 3,138.2 million, a 21.6% increase from the end of last year, mainly due to an increase in share capital and reserves - Total equity was RMB 3,138.2 million, a 21.6% increase from the end of last year[100] Total Equity | Item | June 30, 2025 (RMB thousand) | Proportion (%) | December 31, 2024 (RMB thousand) | Proportion (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Share capital | 1,615,102 | 51.5 | 1,333,334 | 51.7 | 21.1 | | Reserves | 1,523,064 | 48.5 | 1,248,041 | 48.3 | 22.0 | | Total equity | 3,138,166 | 100.0 | 2,581,375 | 100.0 | 21.6 | 4. Capital Expenditure During the reporting period, the Group's capital expenditure amounted to RMB 221.4 million, primarily allocated to upgrading information systems for business operations and risk management, acquiring operating lease machinery and equipment, and purchasing office and electronic equipment - Capital expenditure was RMB 221.4 million, mainly for information system upgrades, operating lease machinery and equipment, and office equipment purchases[103] 5. Risk Management The Group has established a prudent, efficient, and innovative risk management system to balance risks and returns in technology and new economy sectors, addressing credit, interest rate, liquidity, and foreign exchange risks with corresponding policies - The Group has established a prudent, efficient, and innovative risk management system to balance risks and returns and maximize Group value[104] - Key operating risks include credit risk, interest rate risk, liquidity risk, and foreign exchange risk[105] 5.1 Credit Risk Credit risk is a primary concern, managed through strict client admission policies, a scientific credit evaluation system, comprehensive due diligence, rigorous project approval, and a complete post-lease management system - Implemented focus on "business segments," "core clients," and "core leased assets," along with "three-person project approval" and "pre-approval" procedures[107] - Continuously optimized the "entity credit + asset credit" two-dimensional rating system, introducing external big data to enhance model adaptability and accuracy[108] - Established a comprehensive due diligence system, considering risks from the lessee entity, related enterprises, and leased assets[109] - Implemented a "reviewer" mechanism, tiered approval, specialized approval, and regular analysis and review of overdue projects to improve approval efficiency[110] - Established a complete post-lease management system, covering leased asset management, lessee operation monitoring, leased asset classification, and non-performing asset disposal[111] 5.2 Interest Rate Risk Interest rate risk primarily relates to the Group's interest-bearing bank and other financing, as well as finance lease receivables, with plans to monitor rate changes and use financial instruments like interest rate swaps to hedge exposures - Interest rate risk primarily relates to interest-bearing bank and other financing, as well as finance lease receivables[112] - Hedging interest rate risk exposure through asset-liability management, repricing management, and interest rate swaps[112] 5.3 Liquidity Risk Liquidity risk, the inability to obtain sufficient funds at a reasonable cost to meet payment obligations, is managed by maintaining adequate cash and cash equivalents and implementing comprehensive monitoring policies and procedures, with the Group's liquidity remaining good during the reporting period - The Group holds cash and cash equivalents deemed sufficient by management and implements comprehensive policies and procedures to monitor them[113] - The Group's liquidity position was good during the reporting period[113] 5.4 Foreign Exchange Risk Foreign exchange risk arises from transactions denominated in currencies other than RMB, the Group's functional currency, and is managed through financial instruments like currency swaps to hedge exposure - Foreign exchange risk primarily arises from transactions denominated in currencies other than RMB[114] - The Group uses financial instruments such as currency swaps to hedge foreign exchange risk exposure[114] 6. Pledged Assets of the Group As of the end of the reporting period, RMB 4,938.7 million of loans and receivables were pledged, and RMB 70.1 million in cash was used for bank acceptance bills, bank factoring loans, and asset securitization businesses - RMB 4,938.7 million of loans and receivables were pledged[115] - RMB 70.1 million in cash was used for bank acceptance bills, bank factoring loans, and asset securitization businesses[115] 7. Material Investments, Acquisitions and Disposals During the reporting period, the Group had no material investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures - During the reporting period, the Group had no material investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures[116] 8. Human Resources As of June 30, 2025, the Group had 146 employees, with approximately 100% holding bachelor's degrees or above and 69.2% holding master's degrees or above; staff retention is high, with over 55.5% having more than 5 years of service, supported by flexible compensation, clear career paths, and comprehensive training and benefits 8.1 Staff Costs During the reporting period, the Group's staff costs were approximately RMB 30.8 million, a decrease from RMB 37.4 million in the same period last year, including salaries, social insurance, share-based payments, and training - Staff costs were approximately RMB 30.8 million, a decrease from approximately RMB 37.4 million in the same period last year[117] 8.2 Staff Structure As of June 30, 2025, the Group had 146 employees, with approximately 100% holding bachelor's degrees or above and 69.2% holding master's degrees or above; overall staff stability is high, with over 55.5% having more than 5 years of service - As of June 30, 2025, the Group had 146 employees, with approximately 100% holding bachelor's degrees or above, and approximately 69.2% holding master's degrees or above[118] - Over 55.5% of current employees have more than 5 years of service, indicating overall staff stability and high retention[118] 8.3 Incentive Schemes The Group has established flexible and efficient employee compensation incentive schemes linking remuneration to performance and contributions, providing clear career development paths, and implementing annual performance evaluations and targeted training based on operational goals - Established flexible and efficient employee compensation incentive schemes, linking remuneration to work performance and contributions[119] - Provides clear career development paths and implements comprehensive performance evaluations and targeted training programs[119] 8.4 Employee Benefits The Group strictly fulfills all statutory social insurance and housing provident fund obligations as required by Chinese laws and regulations, and provides supplementary medical and accidental injury insurance to eligible employees - Strictly fulfills statutory social insurance and housing provident fund obligations[120] - Provides supplementary medical and accidental injury insurance to eligible employees[120] 8.5 Staff Training The Group prioritizes staff training, having established a competency-based training system, organized various management and professional skills courses, and implemented development programs for cadres and young talents - Established a competency-based training system, organizing multiple management and professional skills training courses[121] - Implemented development programs for cadres and young talents[121] 9. Contingent Liabilities and Capital Commitments As of the end of the reporting period, the Group had no material contingent liabilities; capital and credit commitments primarily include finance lease commitments for signed but uncommenced leases, unpaid capital contributions to associates, and amounts payable for operating lease assets signed but not yet recognized 9.1 Contingent Liabilities As of the end of the reporting period, the Group had no material contingent liabilities - As of the end of the reporting period, the Group had no material contingent liabilities[122] 9.2 Capital Commitments and Credit Commitments As of the end of the reporting period, off-balance sheet credit commitments amounted to RMB 106.1 million, capital expenditure commitments to RMB 2.34 million, and property and equipment commitments to RMB 2.593 million Capital Commitments and Credit Commitments | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Off-balance sheet credit commitments | 106,122 | 109,269 | | Capital expenditure commitments | 2,340 | 2,340 | | Property and equipment | 2,593 | 995 | - Off-balance sheet credit commitments primarily represent finance leases that have been signed but whose lease terms have not yet commenced[123] - Capital expenditure commitments represent unpaid capital contributions to associates[123] - Property and equipment commitments primarily represent amounts payable for operating lease assets that have been signed but not yet recognized in the financial statements[123] 10. Use of Net Proceeds from Subscription of Domestic Shares The company successfully issued 282 million new domestic shares to Zhongguancun JinFu and Wangjing Zongkai, raising approximately RMB 507 million in net proceeds to strengthen capital, enhance competitiveness, accelerate strategic transformation, improve credit ratings, boost financing capabilities, elevate brand influence, and optimize capital structure; as of June 30, 2025, RMB 195.6 million has been used for finance lease and industry-finance integration businesses, with the remaining funds to be utilized in the second half of 2025 - Successfully issued 282 million new domestic shares, raising net proceeds of approximately RMB 507 million[126] - The purpose of the subscription includes strengthening capital, enhancing market competitiveness, accelerating strategic transformation, improving credit ratings, boosting financing capabilities, elevating brand influence, and optimizing capital structure[125] - As of June 30, 2025, RMB 195.6 million has been used, with the remaining RMB 311.6 million to be utilized in the second half of 2025 for developing finance lease and industry-finance integration businesses[126] Use of Net Proceeds from Domestic Share Subscription | Planned Use | Planned Amount (RMB million) | Amount Used (RMB million) | Remaining Amount (RMB million) | Planned Usage Time | | :--- | :--- | :--- | :--- | :--- | | Development of finance lease business | 456.5 | 145.0 | 311.5 | Before December 31, 2025 | | Development of industry-finance integration business | 50.7 | 50.6 | 0.1 | Before December 31, 2025 | 11. Future Outlook In the second half of 2025, the company will continue to pursue its goals, actively adapt, leverage the unique "Zhongguancun Technology Leasing Model," deeply integrate industrial operations with technology finance, achieve business structure transformation and upgrading, and continuously enhance intrinsic value for investors and society - In the second half of 2025, the company will continue to firmly pursue its goals, actively seek change, and innovate to address external uncertainties with its own certainty[128] - Leverage the unique role of the "Zhongguancun Technology Leasing Model" to promote deep integration of industrial operations and technology finance, achieving business structure transformation and upgrading[128] 12. Future Plans for Material Investments or Capital Assets As of June 30, 2025, the company had no future plans for material investments or capital assets - As of June 30, 2025, the company had no future plans for material investments or capital assets[129] Condensed Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the Group reported revenue of RMB 417.5 million and net profit of RMB 144.3 million, a 5.1% year-on-year increase, with total comprehensive income for the period at RMB 144.9 million and basic and diluted earnings per share at RMB 0.11 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 417,472 | 423,564 | | Profit before tax | 192,130 | 183,201 | | Net profit for the period | 144,311 | 137,256 | | Other comprehensive income | 606 | – | | Total comprehensive income for the period | 144,917 | 137,256 | | Basic and diluted earnings per share (RMB) | 0.11 | 0.10 | Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets were RMB 12,851.4 million, with non-current assets at RMB 5,047.8 million and current assets at RMB 7,803.6 million; total liabilities were RMB 9,713.2 million, with current liabilities at RMB 5,824.4 million; net assets and total equity attributable to shareholders were RMB 3,138.2 million Condensed Consolidated Statement of Financial Position Summary | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current assets | 5,047,821 | 5,179,451 | | Current assets | 7,803,588 | 7,876,363 | | Total assets | 12,851,409 | 13,055,814 | | Current liabilities | 5,824,442 | 6,324,297 | | Non-current liabilities | 3,888,801 | 4,150,142 | | Total liabilities | 9,713,243 | 10,474,439 | | Net assets | 3,138,166 | 2,581,375 | | Total equity attributable to shareholders of the Company | 3,138,166 | 2,581,375 | Condensed Consolidated Statement of Changes in Equity As of June 30, 2025, total shareholders' equity increased from RMB 2,581.4 million at the beginning of the year to RMB 3,138.2 million, primarily due to total comprehensive income of RMB 144.9 million and proceeds from share issuance of RMB 507.2 million, offset by dividends paid of RMB 95.3 million Condensed Consolidated Statement of Changes in Equity Summary | Item | January 1, 2025 (RMB thousand) | Total comprehensive income for the period (RMB thousand) | Shares issued (RMB thousand) | Dividends (RMB thousand) | June 30, 2025 (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | | Total shareholders' equity | 2,581,375 | 144,917 | 507,165 | (95,291) | 3,138,166 | Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2025, net cash from operating activities was RMB 721.4 million; net cash used in investing activities was RMB 220.1 million, mainly for equipment and intangible asset purchases; net cash used in financing activities was RMB 136.7 million, despite obtaining RMB 3,433.1 million in borrowings, offset by RMB 3,920.0 million in repayments; cash and cash equivalents at period-end increased by RMB 364.6 million to RMB 1,205.5 million Condensed Consolidated Statement of Cash Flows Summary | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net cash generated from operating activities | 721,366 | 847,082 | | Net cash used in investing activities | (220,109) | (76,509) | | Net cash used in financing activities | (136,699) | (827,721) | | Net increase in cash and cash equivalents | 364,558 | (57,148) | | Cash and cash equivalents at June 30 | 1,205,511 | 578,111 | Notes to the Unaudited Interim Financial Report 1. General Information Zhongguancun Technology Leasing Co., Ltd. was established in Beijing, China, restructured into a joint stock company in 2019, and listed on the Hong Kong Stock Exchange on January 21, 2020 - The Company was established in Beijing, People's Republic of China, restructured into a joint stock company on August 16, 2019, and its H shares were listed on the Hong Kong Stock Exchange on January 21, 2020[136] 2. Basis of Preparation This interim financial report is prepared in accordance with the Hong Kong Stock Exchange Listing Rules and International Accounting Standard 34, comprising condensed consolidated financial statements and explanatory notes, and has been reviewed by Deloitte Touche Tohmatsu - This interim financial report is prepared in accordance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and International Accounting Standard 34 – Interim Financial Reporting[137] - This report was approved for issue on August 28, 2025, and has been reviewed by Deloitte Touche Tohmatsu in accordance with International Standard on Review Engagements 2410[138] 3. Accounting Policies The condensed consolidated financial statements are prepared on a historical cost basis, except for certain financial instruments measured at fair value; the first-time application of IAS 21 (amended): Lack of Exchangeability during this interim period had no significant impact on financial position or performance - The condensed consolidated financial statements are prepared on a historical cost basis, except for certain financial instruments measured at fair value[139] - The first-time application of IAS 21 (amended): Lack of Exchangeability during this interim period had no significant impact on financial position or performance[139] 4. Revenue The Group's primary business involves providing leasing and consulting services, with revenue comprising finance lease interest income, sale and leaseback interest income, intellectual property lease income, management consulting fees, policy consulting fees, and operating lease income; no single customer transaction exceeded 10% of total revenue during the reporting period - The Group's primary business is to provide leasing services and related consulting services, with no single customer transaction exceeding 10% of total revenue[140] Revenue by Major Category | Revenue Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Finance lease interest income | 36,223 | 32,022 | | Sale and leaseback interest income | 281,456 | 296,427 | | Intellectual property lease income | 24,326 | 37,416 | | Management consulting fee income | 17,915 | 16,121 | | Policy consulting fee income | 42,284 | 37,991 | | Operating lease income | 15,268 | 3,587 | | Total | 417,472 | 423,564 | 5. Other Net Income Other net income primarily includes bank deposit interest, government grants, and fair value changes of financial assets measured at fair value through profit or loss; government grants, awarded for financing services to technology innovation enterprises in specific regions, are recognized as income upon receipt Other Net Income Details | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Deposit interest | 1,901 | 2,045 | | Government grants | 1,642 | 148 | | Fair value changes of financial assets measured at fair value through profit or loss | 405 | – | | Other | 5 | 119 | | Total | 3,953 | 2,312 | - Government grants are mainly for rewarding finance lease companies that provide financing services to technology innovation enterprises in specific regions, and are recognized as income upon receipt as they are unconditional[142] 6. Interest Expense Interest expense primarily comprises borrowing interest, estimated interest expense on interest-free security deposits from lessees, and lease liability interest expense, totaling RMB 129.4 million for the six months ended June 30, 2025 Interest Expense Details | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Borrowings | 98,286 | 119,196 | | Estimated interest expense on interest-free security deposits from lessees | 24,673 | 26,757 | | Lease liabilities interest expense | 174 | 414 | | Other | 6,273 | – | | Total | 129,406 | 146,367 | 7. Operating Expenses Operating expenses include staff costs, depreciation and amortization, regional enterprise service fees, professional service fees, office and travel expenses, public maintenance fees, business development fees, auditor's remuneration, and other expenses, totaling RMB 69.8 million for the six months ended June 30, 2025 Operating Expenses Details | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Staff costs | 30,824 | 37,387 | | Depreciation and amortization | 19,648 | 9,467 | | Regional enterprise service fees | 4,738 | 3,444 | | Professional service fees | 1,652 | 1,513 | | Office and travel expenses | 2,209 | 2,278 | | Public maintenance fees | 866 | 981 | | Business development fees | 1,344 | 870 | | Auditor's remuneration | 830 | 830 | | Other | 7,693 | 11,770 | | Total operating expenses | 69,804 | 68,540 | 8. Impairment recognized under Expected Credit Loss model, net Net impairment recognized under the expected credit loss model is primarily related to loans and receivables, amounting to RMB 33.8 million for the six months ended June 30, 2025 Impairment recognized under Expected Credit Loss model, net details | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Loans and receivables | 33,790 | 30,774 | | Credit commitments | – | – | | Total | 33,790 | 30,774 | 9. Income Tax in Condensed Consolidated Statement of Profit or Loss Income tax expense in the condensed consolidated statement of profit or loss includes current China corporate income tax provision and deferred income tax; the company is subject to a statutory corporate income tax rate of 25% in China Income Tax in Condensed Consolidated Statement of Profit or Loss Details | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current tax – provision for China corporate income tax for the period | 55,089 | 44,323 | | Deferred tax – (generated) / reversed temporary differences | (7,270) | 1,622 | | Total | 47,819 | 45,945 | - The Company is subject to China corporate income tax at a statutory rate of 25%[148] 10. Basic and Diluted Earnings Per Share Basic earnings per share is calculated based on net profit attributable to shareholders of RMB 144.3 million and a weighted average of 1,339.6 million ordinary shares outstanding during the interim period; basic and diluted earnings per share are identical as there were no potentially dilutive shares outstanding - Basic earnings per share is calculated based on net profit attributable to shareholders of the Company of RMB 144.3 million and a weighted average of 1,339.6 million ordinary shares outstanding during the interim period[149] - Basic and diluted earnings per share are identical as there were no potentially dilutive shares outstanding during the reporting period[149] 11. Property and Equipment As of June 30, 2025, the carrying value of property and equipment was RMB 307.2 million, primarily comprising operating lease equipment, self-use leased properties, electronic equipment, office equipment, and other items; purchases during the period amounted to RMB 244.4 million, and disposals and other changes were RMB 41.3 million - As of June 30, 2025, the carrying value of property and equipment was RMB 307.2 million[150] - Purchases during the period amounted to RMB 244.4 million, and disposals and other changes were RMB 41.3 million[150] 12. Loans and Receivables Total loans and receivables amounted to RMB 10,946.8 million, with impairment provisions of RMB 278.9 million, resulting in a carrying value of RMB 10,667.9 million; these primarily include finance lease receivables, sale and leaseback receivables, and intellectual property lease receivables; during the reporting period, the Group established a trust plan for certain credit-impaired loans and receivables and transferred the beneficiary rights, incurring no profit or loss Loans and Receivables Details | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Net finance lease receivables | 1,241,252 | 1,261,433 | | Sale and leaseback receivables | 9,082,788 | 9,788,885 | | Intellectual property lease receivables | 622,723 | 896,642 | | Total loans and receivables | 10,946,763 | 11,946,960 | | Less: Impairment provision for loans and receivables | (278,863) | (441,866) | | Total | 10,667,900 | 11,505,094 | - In June 2025, the Group established a trust plan for certain loans and receivables that had incurred credit impairment over their entire lifetime, and transferred the beneficiary rights to shareholders for a consideration of approximately RMB 20 million, resulting in no profit or loss[154] 13. Investments in Associates The Group's investments in associates totaled RMB 305.2 million, primarily long-term equity investments in investment management and consulting service companies such as Beijing Zhongnuo Tongchuang Investment Fund Management Co., Ltd. and Jiangsu Zhongguancun Zhongnuo Collaborative Investment Fund Partnership; all associates are unlisted companies or partnerships accounted for using the equity method - Investments in associates totaled RMB 305.2 million[159] - Primarily invested in investment management and consulting service companies; all associates are unlisted companies or partnerships accounted for using the equity method[156][157][158] 14. Income Tax in Condensed Consolidated Statement of Financial Position Deferred income tax assets amounted to RMB 117.9 million, primarily arising from temporary differences between financial reporting net profit and taxable income; income tax payable was RMB 12.3 million - Deferred income tax assets amounted to RMB 117.9 million[161] - Income tax payable amounted to RMB 12.3 million[162] 15. Other Assets Total other assets amounted to RMB 131.8 million, including non-current other assets, deductible VAT, prepayments, amounts due from related parties, and other receivables Other Assets Details | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current assets – other assets | 9,364 | 3,086 | | Current assets – deductible VAT | 99,456 | 77,222 | | Current assets – prepayments | 17,605 | 4,112 | | Current assets – amounts due from related parties | 5,287 | 5,288 | | Current assets – other receivables | 137 | 373 | | Total | 131,849 | 90,081 | 16. Accounts Receivable Accounts receivable, primarily operating lease receivables, amounted to RMB 8.2 million as of June 30, 2025, all due within one year - Accounts receivable, primarily operating lease receivables, amounted to RMB 8.2 million as of June 30, 2025[164] - All accounts receivable are due within one year[164] 17. Cash and Cash Equivalents As of June 30, 2025, cash and cash equivalents in the form of bank deposits amounted to RMB 1,205.5 million - As of June 30, 2025, cash and cash equivalents in the form of bank deposits amounted to RMB 1,205.5 million[164] 18. Borrowings Total borrowings amounted to RMB 7,436.0 million, including bank loans (pledged and unpledged), asset-backed securities and notes, and credit bonds; current borrowings accounted for 57.5% and non-current for 42.5%, with contractual interest rates ranging from floating rates (LPR-10bps to +60bps) to fixed rates (2.35%-4.60%) Borrowings Details | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Bank loans – pledged | 983,898 | 1,427,217 | | Bank loans – unpledged | 1,350,916 | 1,917,776 | | Asset-backed securities and notes | 4,192,205 | 3,656,920 | | Credit bonds | 909,008 | 1,006,311 | | Total | 7,436,027 | 8,008,224 | - Current borrowings accounted for 57.5% of total borrowings, and non-current borrowings for 42.5%[164] - Contractual interest rates for borrowings ranged from floating rates (Loan Prime Rate -10bps to +60bps) to fixed rates (2.35%-4.60%)[165] 19. Trade and Other Liabilities Total trade and other liabilities amounted to RMB 2,264.9 million, including bills payable, security deposits from lessees, accounts payable, dividends payable, deferred income, accrued staff costs, and lease liabilities, with bills payable and security deposits from lessees being the main components Trade and Other Liabilities Details | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Current liabilities – bills payable | 673,069 | 920,434 | | Current liabilities – security deposits from lessees | 416,482 | 494,415 | | Current liabilities – accounts payable | 234,165 | 150,838 | | Current liabilities – dividends payable | 95,291 | – | | Non-current liabilities – security deposits from lessees | 704,147 | 748,041 | | Total | 2,264,923 | 2,443,414 | - Accrued staff costs include accrued bonuses and defined contribution retirement plans[167] 20. Capital, Reserves and Dividends As of June 30, 2025, total share capital was RMB 1,615.1 million, comprising domestic and H shares, with an increase due to the issuance of 282 million new domestic shares to two companies; reserves include capital reserve, surplus reserve, fair value reserve, and general reserve; dividends approved but not yet distributed for the interim period amounted to RMB 95.3 million Share Capital | Share Class | Number of Shares (thousand shares) | Share Capital (RMB thousand) | | :--- | :--- | :--- | | Domestic shares (as of June 30, 2025) | 1,121,768 | 1,121,768 | | H shares (as of June 30, 2025) | 493,334 | 493,334 | | Total | 1,615,102 | 1,615,102 | - In June 2025, 282 million new domestic shares were issued, increasing total share capital to 1,615.1 million shares[168] - Capital reserve primarily includes capital reserve arising from the conversion from a limited liability company to a joint stock company and share premium[169] - Reserves include surplus reserve, fair value reserve, and general reserve[170][172][173] - Dividends approved but not yet distributed for this interim period amounted to RMB 95.3 million[174] 21. Financial Risk Management and Fair Value Measurement of Financial Instruments Risk management policies remained unchanged during the reporting period; the Group determines and discloses the fair value of financial instruments based on Level 1, Level 2, and Level 3, with fair value of unlisted investments determined using the net asset method, classified as Level 3 measurement - Risk management policies did not undergo significant changes during the reporting period[175] - The fair value of financial instruments is determined and disclosed based on Level 1, Level 2, and Level 3[175] - The fair value of unlisted investments is determined using the net asset method and is classified as Level 3 measurement[178] Fair Value Measurement Level Distribution | Financial Asset Category | Level 1 (RMB thousand) | Level 2 (RMB thousand) | Level 3 (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Financial assets me