傲基股份(02519) - 2025 - 中期业绩

Company Information and Financial Summary Company Basic Information AUKEY (Shenzhen) Cross-border E-commerce Co., Ltd. (Stock Code: 2519) announced its interim results for the six months ended June 30, 2025 - Company Name: AUKEY (Shenzhen) Cross-border E-commerce Co., Ltd[2] - Stock Code: 2519[2] - Reporting Period: Six months ended June 30, 2025[2] Financial Highlights For the six months ended June 30, 2025, the company's revenue increased by 29.3% year-on-year to 5,607,246 Thousand RMB, while profit for the period and profit attributable to owners of the company significantly decreased For the six months ended June 30, 2025 Financial Highlights | Indicator | 2025 (Thousand RMB) | 2024 (Thousand RMB) | Change Rate | | :--- | :--- | :--- | :--- | | Revenue | 5,607,246 | 4,334,982 | +29.3% | | Gross Profit | 1,602,364 | 1,483,440 | +8.0% | | Profit Before Tax | 143,640 | 350,876 | -59.1% | | Profit for the Period | 116,586 | 283,943 | -58.9% | | Profit for the Period Attributable to Owners of the Company | 107,872 | 258,880 | -58.3% | 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 significantly increased by 29.3% to 5,607,246 Thousand RMB, but increased costs and expenses, along with a shift from other gains to losses, led to a substantial decrease in profit before tax and profit for the period, with basic and diluted earnings per share falling from 0.67 RMB to 0.26 RMB Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data | Indicator | 2025 (Thousand RMB) | 2024 (Thousand RMB) | Change Rate | | :--- | :--- | :--- | :--- | | Revenue | 5,607,246 | 4,334,982 | +29.3% | | Cost of Sales | (4,004,882) | (2,851,542) | +40.4% | | Gross Profit | 1,602,364 | 1,483,440 | +8.0% | | Other Income | 24,294 | 15,795 | +53.8% | | Other Gains and Losses | (11,701) | 41,001 | -128.5% | | Selling Expenses | (1,071,004) | (902,851) | +18.6% | | Administrative Expenses | (195,185) | (157,938) | +23.6% | | Research and Development Expenses | (80,146) | (55,851) | +43.5% | | Finance Costs | (127,291) | (43,541) | +192.3% | | Profit Before Tax | 143,640 | 350,876 | -59.1% | | Profit for the Period | 116,586 | 283,943 | -58.9% | | Profit for the Period Attributable to Owners of the Company | 107,872 | 258,880 | -58.3% | | Basic and Diluted Earnings Per Share (RMB) | 0.26 | 0.67 | -61.2% | Condensed Consolidated Statement of Financial Position As of June 30, 2025, the company's total assets slightly increased, with a decrease in total non-current assets and an increase in total current assets, while both total current and non-current liabilities rose, leading to a minor decrease in net assets and equity attributable to owners of the company, primarily due to increased bank borrowings and lease liabilities Condensed Consolidated Statement of Financial Position Key Data | Indicator | June 30, 2025 (Thousand RMB) | December 31, 2024 (Thousand RMB) | Change Rate | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 3,977,899 | 4,011,030 | -0.8% | | Total Current Assets | 4,962,106 | 4,768,520 | +4.1% | | Total Assets | 8,940,005 | 8,779,550 | +1.8% | | Total Current Liabilities | 2,880,473 | 2,675,779 | +7.7% | | Total Non-current Liabilities | 2,953,499 | 2,994,458 | -1.4% | | Total Liabilities | 5,833,972 | 5,670,237 | +2.9% | | Net Assets | 3,106,033 | 3,109,313 | -0.1% | | Equity Attributable to Owners of the Company | 3,067,323 | 3,079,521 | -0.4% | | Cash and Cash Equivalents | 1,306,988 | 1,363,752 | -4.2% | | Trade Receivables | 990,490 | 1,269,396 | -22.0% | | Bank Borrowings (Current) | 1,024,843 | 716,626 | +42.9% | | Bank Borrowings (Non-current) | 248,248 | 257,174 | -3.4% | Notes to the Condensed Consolidated Financial Statements Basis of Preparation and Presentation and Accounting Policies The condensed consolidated financial statements are prepared in accordance with IAS 34 and HKEX Listing Rules, using the historical cost basis, consistent with the accounting policies and methods used in the 2024 consolidated financial statements, with no significant impact from IFRS amendments applied this period - The condensed consolidated financial statements are prepared in accordance with IAS 34 and the HKEX Listing Rules[9] - The statements are prepared on a historical cost basis, with certain financial instruments measured at revalued amounts or fair value[10] - The application of amendments to IFRS (such as amendments to IAS 21) during the period had no significant impact on the financial position and performance[11] Revenue and Segment Information The company's main operating segments are sales of goods and logistics solutions, with total revenue increasing by 29.3% year-on-year for the six months ended June 30, 2025, driven by a significant increase in logistics solutions revenue, while the US market remains the primary revenue source and the China market shows rapid growth - The Group's operating and reportable segments include sales of goods and logistics solutions[13] Analysis of Revenue and Results by Reportable Segment For the six months ended June 30, 2025, revenue from sales of goods was 3,922,266 Thousand RMB, and logistics solutions revenue was 1,684,980 Thousand RMB, with logistics solutions revenue significantly increasing by 86.4% year-on-year, yet the decline in profit from sales of goods led to an overall 59.1% decrease in the Group's profit before tax Reportable Segment Revenue and Profit | Segment | 2025 Revenue (Thousand RMB) | 2024 Revenue (Thousand RMB) | Revenue Change Rate | 2025 Profit (Thousand RMB) | 2024 Profit (Thousand RMB) | Profit Change Rate | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Sales of Goods | 3,922,266 | 3,430,989 | +14.3% | 366,731 | 431,946 | -15.1% | | Logistics Solutions | 1,684,980 | 903,993 | +86.4% | 164,987 | 151,656 | +8.8% | | Consolidated Total | 5,607,246 | 4,334,982 | +29.3% | 143,640 (Pre-tax) | 350,876 (Pre-tax) | -59.1% | Revenue by Product or Service Category For the six months ended June 30, 2025, sales of goods revenue primarily came from third-party e-commerce platforms, while logistics solutions revenue significantly grew by 86.4%, increasing its proportion of total revenue from 20.9% to 30.1% Revenue by Product or Service Category | Category | 2025 (Thousand RMB) | 2024 (Thousand RMB) | Change Rate | | :--- | :--- | :--- | :--- | | Sales of Goods - Through Third-Party E-commerce Platforms | 3,641,064 | 3,162,895 | +15.1% | | Sales of Goods - Through Other Channels | 281,202 | 268,094 | +4.9% | | Logistics Solutions Revenue | 1,684,980 | 903,993 | +86.4% | | Total | 5,607,246 | 4,334,982 | +29.3% | Revenue by Geographical Market For the six months ended June 30, 2025, the United States remained the company's largest geographical market with revenue of 3,531,330 Thousand RMB, while the China market's revenue grew rapidly by 85.5% year-on-year, demonstrating strong growth momentum Revenue by Geographical Market | Region | 2025 (Thousand RMB) | 2024 (Thousand RMB) | Change Rate | | :--- | :--- | :--- | :--- | | China | 1,493,979 | 805,211 | +85.5% | | United States | 3,531,330 | 3,089,609 | +14.3% | | Other North American Countries | 69,578 | 23,809 | +192.2% | | Germany | 221,601 | 155,864 | +42.2% | | Other European Countries | 238,161 | 191,161 | +24.6% | | Others | 52,597 | 69,328 | -24.2% | | Total | 5,607,246 | 4,334,982 | +29.3% | Other Income and Gains/Losses For the six months ended June 30, 2025, other income, primarily from bank interest and government grants, increased by 53.8% year-on-year, while other gains and losses shifted from a gain to a loss, mainly due to net foreign exchange losses Other Income Details | Item | 2025 (Thousand RMB) | 2024 (Thousand RMB) | Change Rate | | :--- | :--- | :--- | :--- | | Bank Interest Income | 13,677 | 11,239 | +21.7% | | Government Grants | 8,501 | 2,461 | +245.4% | | Interest Income from Finance Lease Receivables | 2,000 | 1,801 | +11.0% | | Dividends from Financial Assets at Fair Value Through Other Comprehensive Income | 116 | 294 | -60.5% | | Total | 24,294 | 15,795 | +53.8% | Other Gains and Losses Details | Item | 2025 (Thousand RMB) | 2024 (Thousand RMB) | Change Rate | | :--- | :--- | :--- | :--- | | Gain (Loss) on Disposal of Property, Plant and Equipment | 41 | (706) | N/A | | Net Foreign Exchange (Loss) Gain | (16,132) | 39,929 | -140.4% | | Fair Value Change in Financial Assets at Fair Value Through Profit or Loss | 4,390 | 1,778 | +146.9% | | Total | (11,701) | 41,001 | -128.5% | Income Tax Expense For the six months ended June 30, 2025, income tax expense decreased by 59.6% year-on-year, primarily due to a reversal of deferred tax from an expense last year to a credit this period, alongside increased current tax in China, Hong Kong, and significantly in the United States Income Tax Expense Details | Item | 2025 (Thousand RMB) | 2024 (Thousand RMB) | Change Rate | | :--- | :--- | :--- | :--- | | Current Tax: Hong Kong | 7,374 | 2,884 | +155.7% | | Current Tax: PRC Enterprise Income Tax | 5,549 | 4,358 | +27.3% | | Current Tax: United States | 21,549 | 6,279 | +243.2% | | Deferred Tax | (7,418) | 53,412 | -113.9% | | Total Income Tax Expense | 27,054 | 66,933 | -59.6% | Components of Profit for the Period For the six months ended June 30, 2025, significant increases in depreciation and amortization, employee benefit expenses, and cost of inventories recognized as an expense were major factors contributing to the decrease in profit for the period Profit for the Period Deductions | Item | 2025 (Thousand RMB) | 2024 (Thousand RMB) | Change Rate | | :--- | :--- | :--- | :--- | | Depreciation and Amortization of Property and Equipment, Right-of-Use Assets and Intangible Assets | 231,656 | 125,693 | +84.3% | | Auditor's Remuneration | 400 | 5 | +7900.0% | | Employee Benefit Expenses | 336,427 | 231,799 | +45.1% | | Write-down of Inventories Recognized as Selling Expenses | 25,673 | 29,038 | -11.6% | | Cost of Inventories Recognized as an Expense (Excluding Write-down of Inventories) | 2,466,453 | 2,068,789 | +19.2% | Dividends and Earnings Per Share For the six months ended June 30, 2025, the company declared and paid a special dividend of 0.25 RMB per share, totaling 103,801 Thousand RMB, while the Board did not recommend an interim dividend, and basic and diluted earnings per share significantly decreased by 61.2% to 0.26 RMB, mainly due to reduced profit and an increased weighted average number of ordinary shares - The company declared and paid a special dividend of 0.25 RMB per ordinary share, totaling 103,801 Thousand RMB, during the interim period[21] - The Board of Directors decided not to recommend the payment of a dividend for the interim period[21] Earnings Per Share Calculation Data | Indicator | 2025 (Thousand RMB/Thousand Shares) | 2024 (Thousand RMB/Thousand Shares) | Change Rate | | :--- | :--- | :--- | :--- | | Profit for the Period Attributable to Owners of the Company | 107,872 | 258,880 | -58.3% | | Weighted Average Number of Ordinary Shares for Basic and Diluted Earnings Per Share | 412,445 | 385,311 | +7.0% | | Basic and Diluted Earnings Per Share (RMB) | 0.26 | 0.67 | -61.2% | - For the six months ended June 30, 2025, the company repurchased 2,487,600 shares as treasury shares, which are not included in the total number of issued shares[25] - Diluted earnings per share were not presented for the six months ended June 30, 2025, as there were no potential ordinary shares issued during the period[26] Changes in Key Balance Sheet Items As of June 30, 2025, the company increased investments in property, plant and equipment, reduced intangible asset acquisitions, and recognized new right-of-use assets and lease liabilities from leasing activities; trade receivables and trade and other payables both decreased, but the 91-180 day aging portion of trade receivables significantly increased Property, Plant and Equipment, Right-of-Use Assets and Intangible Assets For the six months ended June 30, 2025, the company's construction costs for property, plant and equipment acquisitions increased, while intangible asset acquisitions significantly decreased, and active leasing activities resulted in new right-of-use assets of 81,404 Thousand RMB and lease liabilities of 97,019 Thousand RMB - Acquisitions of property, plant and equipment and construction costs amounted to 88,571 Thousand RMB, an 11.7% increase year-on-year[27] - Acquisitions of intangible assets amounted to 958 Thousand RMB, a significant 96.6% decrease year-on-year[27] - New right-of-use assets of 81,404 Thousand RMB and lease liabilities of 97,019 Thousand RMB were recognized, primarily due to termination, subleasing, and new lease agreements[27] Trade Receivables As of June 30, 2025, total trade receivables were 990,490 Thousand RMB, a 22.0% decrease from December 31, 2024, with a reduction in credit loss provisions and a significant increase in receivables aged 91 to 180 days Trade Receivables Details | Item | June 30, 2025 (Thousand RMB) | December 31, 2024 (Thousand RMB) | Change Rate | | :--- | :--- | :--- | :--- | | Trade Receivables from Third Parties | 1,023,475 | 1,311,157 | -22.0% | | Less: Provision for Credit Losses | (32,985) | (41,761) | -21.1% | | Total | 990,490 | 1,269,396 | -22.0% | Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (Thousand RMB) | December 31, 2024 (Thousand RMB) | Change Rate | | :--- | :--- | :--- | :--- | | 0 to 90 days | 830,423 | 1,187,111 | -30.0% | | 91 to 180 days | 116,708 | 43,820 | +166.3% | | 181 to 365 days | 18,044 | 11,174 | +61.5% | | Over 365 days | 25,315 | 27,291 | -7.2% | | Total | 990,490 | 1,269,396 | -22.0% | Trade and Other Payables As of June 30, 2025, total trade and other payables were 1,386,935 Thousand RMB, a 9.0% decrease from December 31, 2024, with a significant increase in trade payables from associates, while bills payable and accrued issuance costs/listing expenses decreased Trade and Other Payables Details | Item | June 30, 2025 (Thousand RMB) | December 31, 2024 (Thousand RMB) | Change Rate | | :--- | :--- | :--- | :--- | | Trade Payables - Third Parties | 1,263,146 | 1,396,100 | -9.5% | | Trade Payables - Associates | 19,583 | 2,349 | +737.9% | | Bills Payable | 28,126 | 39,996 | -29.7% | | Accrued Employee Benefits | 49,569 | 52,355 | -5.4% | | Accrued Issuance Costs/Listing Expenses | - | 8,116 | -100.0% | | Total | 1,386,935 | 1,523,741 | -9.0% | Ageing Analysis of Trade Payables and Bills Payable | Ageing | June 30, 2025 (Thousand RMB) | December 31, 2024 (Thousand RMB) | Change Rate | | :--- | :--- | :--- | :--- | | 0 to 90 days | 1,266,675 | 1,338,704 | -5.4% | | 91 to 180 days | 26,277 | 84,059 | -68.8% | | 181 to 365 days | 6,776 | 6,580 | +3.0% | | Over 365 days | 11,127 | 9,101 | +22.3% | | Total | 1,310,855 | 1,438,444 | -8.8% | Management Discussion and Analysis Industry Environment and Trends Global digital trade continues to advance, with China's export cross-border e-commerce expected to grow steadily, and the global B2C e-commerce market GMV projected to reach 7,712.5 billion USD by 2028; despite universal pressure from global tariff policy adjustments, the impact on the company's major overseas market sales remains controllable, though the international trade environment remains complex and uncertain - Global digital trade continues to advance, with China's export cross-border e-commerce scale expected to maintain steady growth in 2025[31] - The global B2C e-commerce market's GMV is projected to reach 7,712.5 billion USD by 2028[31] - Global tariff policy adjustments pose pressure on operational costs, but the impact on the company's major overseas market sales remains controllable[31] Business Review During the reporting period, the company leveraged its multi-brand system, digital support, supply chain management, and warehousing logistics network to focus on cross-border B2C business in the "Home and Living" sector, primarily selling through third-party platforms like Amazon, Walmart, and Wayfair, while its logistics solutions business achieved significant growth through Western Post Group, expanding its overseas warehouse network - The company's mission is "Connecting the World, Creating a Better Life," focusing on the "Home and Living" sector through a multi-brand system, digital support, supply chain management, and warehousing logistics network[32] - It primarily engages in cross-border B2C business through third-party online platforms such as Amazon, Walmart, and Wayfair[32] - Logistics solutions are provided through WESTERN POST (SG) PTE. LTD. and its subsidiaries ("Western Post Group"), enabling efficient and low-cost delivery[32] Core Business and Brands During the reporting period, the company focused on furniture and home furnishing products under proprietary brands like ALLEWIE and IRONCK, with several core product categories consistently ranking first in market share on Amazon US, and new categories such as wardrobes, storage cabinets, and cat trees also performing strongly Revenue by Business Line | Business Line | 2025 (Thousand RMB) | % of Revenue | 2024 (Thousand RMB) | % of Revenue | | :--- | :--- | :--- | :--- | :--- | | Sales of Goods | 3,922,266 | 69.9% | 3,430,989 | 79.1% | | Logistics Solutions | 1,684,980 | 30.1% | 903,993 | 20.9% | | Total | 5,607,246 | 100.0% | 4,334,982 | 100.0% | - Focus on furniture and home furnishing products under proprietary brands such as ALLEWIE, IRONCK, LIKIMIO, SHA CERLIN, HOSTACK, and FOTOSOK[33] - Multiple core product categories consistently held the top market share on Amazon US, with new categories also ranking among the leaders[33] Product Portfolio The company strategically focuses more on furniture, home furnishings, and home appliances, while also offering power tools (such as electric screwdrivers and air pumps) and other products (such as power banks and chargers), providing a rich product portfolio with high-tech features and practical designs - Strategically focusing more on furniture, home furnishings, and home appliances, including beds, bookshelves, wardrobes, refrigerators, and juicers[36] - The product portfolio also includes power tools such as electric screwdrivers, air pumps, jump starters, and car vacuum cleaners[39] - Other products include power banks, chargers, and data cables[39] Supply Chain and Logistics The company is accelerating the optimization and upgrade of its supply chain system, strategically adjusting its layout to deepen its presence in non-US markets, and enhancing competitiveness through continuous product development; leveraging Western Post Group, cross-border logistics solutions have made significant progress, with an additional 924,000 square feet of warehouse space and an 86.4% year-on-year increase in logistics solutions revenue - Accelerating the optimization and upgrade of the supply chain system by adding production bases and expanding into non-US markets[40][41] - During the reporting period, 79 new patent applications were filed, and 17 international design awards were received (13 Red Dot, 4 iF)[40] - Leveraging Western Post Group's technological empowerment, cross-border logistics solutions cover the entire chain, with an additional warehouse area of 924,000 square feet[40] - Logistics solutions revenue achieved significant growth, with a year-on-year increase of 86.4%[40] Sales Network The company derives most of its revenue from third-party e-commerce platforms, deepening cooperation with leading global platforms such as Amazon, Walmart, and Wayfair, while also selling products through other third-party e-commerce platforms like Shein, Temu, and Tiktok, as well as offline distributors - Most revenue is derived from selling goods through third-party e-commerce platforms, deepening cooperation with Amazon, Walmart, and Wayfair[42] - Amazon platform: Standard agreements signed, direct sales to consumers, utilizing FBA services[42] - Walmart platform: Standard agreements signed, direct sales to consumers, utilizing Walmart fulfillment services[42] - Wayfair platform: Products sold to Wayfair, with suggested listing prices, Wayfair makes final decisions[42] - Other channels: Including multiple third-party e-commerce platforms such as Shein, Temu, Tiktok, and offline distributors[42] Future Outlook The company anticipates significant growth potential in the online furniture market, especially for large furniture items, and plans to enhance market competitiveness by optimizing the supply chain, strengthening brand building, improving logistics efficiency, and deeply applying AI technology to navigate complex economic environments and tariff policy adjustments - The company is committed to long-term development, implementing multi-dimensional strategies across supply chain, brand, logistics, and digital empowerment to enhance risk resistance and market competitiveness[45] Industry Development Opportunities The online furniture market has immense growth potential, with the global furniture and home furnishings market GMV projected to reach 779.4 billion USD by 2028; despite low online penetration for large furniture, deepening digital consumption, upgraded overseas warehousing logistics infrastructure, and improved installation services are expanding online sales to high-value large furniture, creating a virtuous cycle - The global furniture and home furnishings market's GMV is projected to reach 779.4 billion USD by 2028[43] - Online penetration for large furniture is lower than for small home furnishings, primarily due to high unit prices, high logistics costs, and complex installation[43] - Deepening digital consumption behaviors cultivated during the pandemic and upgraded overseas warehousing logistics infrastructure are driving the expansion of online sales for large furniture[44] Development Strategies The company will implement a global supply chain layout, localized procurement, strengthened brand core competitiveness, improved logistics efficiency and services, and deep application of AI technology for full-process intelligent upgrades to address market challenges and drive a leap in corporate competitiveness Supply Chain Management The company will accelerate its global supply chain layout by establishing new production bases in advantageous regions and building a localized procurement system, fostering deep cooperation with quality suppliers to mitigate supply chain risks, optimize operational costs, and enhance resilience and efficiency - Accelerating the deep optimization of the supply chain layout and actively promoting a global supply chain layout[46] - Establishing a localized procurement system and fostering deep, long-term strategic partnerships with local quality suppliers[46] - Implementing a "production + procurement" dual-driven model to reduce supply chain risks and intermediate costs, ensuring resilience and efficiency[46] Brand Building The company will continue to deepen its brand strategy, increase R&D investment, focus on product functional innovation, enhance quality, performance, and uniqueness, and strengthen brand premium and market influence through precise market positioning, mid-to-high-end product design, and superior user experience - Continuously deepening brand strategy, increasing R&D investment, focusing on product functional innovation, and enhancing product quality, performance, and uniqueness[47] - Enhancing brand and product premium capabilities through precise market positioning, mid-to-high-end product design, and superior user experience[47] Logistics Management The company will build its logistics system by enhancing efficiency, upgrading infrastructure, and optimizing services, utilizing intelligent management systems to improve inventory turnover and delivery timeliness, increasing investment in overseas warehouses, and establishing a refined after-sales service system to boost customer satisfaction and loyalty - Optimizing warehousing, transportation, and distribution through an intelligent logistics management system to reduce logistics operating costs[48] - Increasing investment in overseas warehouses and regional distribution centers to optimize the warehousing network layout[48] - Establishing a refined and responsive after-sales service system to provide personalized services, enhancing customer satisfaction and loyalty[48] AI Empowerment The company will actively promote the deep penetration and integration of AI technology across all business segments, achieving full-process intelligent upgrades from front-end market insights to back-end operational management, precisely predicting market demand through multi-modal data analysis, and building dynamic prediction models for intelligent and automated procurement and inventory management to improve collaborative efficiency and reduce operational costs - Actively promoting the deep penetration and integration of AI technology across all company business segments to achieve full-process intelligent upgrades[49] - Leveraging AI's powerful multi-modal data analysis capabilities to accurately predict market demand trends and analyze consumer behavior[49] - AI will build dynamic prediction models through deep mining of back-end operational data, enabling intelligent and automated procurement and inventory management[49] Financial Review Revenue Analysis For the six months ended June 30, 2025, the company's total revenue increased by 29.3% year-on-year to 5,607.2 Million RMB, primarily driven by the continuous expansion of sales of goods and significant growth in logistics solutions business, with logistics solutions revenue increasing by 86.4% as the main growth driver Total Revenue For the six months ended June 30, 2025, the company's revenue increased by 29.3% from 4,335.0 Million RMB to 5,607.2 Million RMB, primarily due to expanded sales of goods and increased provision of logistics solutions - Revenue increased by 29.3% from 4,335.0 Million RMB to 5,607.2 Million RMB[51] - Primarily due to the continuous expansion of sales of goods and the provision of more logistics solutions[51] Revenue by Product or Service Category For the six months ended June 30, 2025, sales of goods remained the primary revenue source, accounting for 69.9% of total revenue, but logistics solutions revenue significantly increased its share to 30.1%, growing by 86.4% year-on-year Revenue by Product or Service Category Details | Product or Service Category | 2025 (Thousand RMB) | % of Revenue | 2024 (Thousand RMB) | % of Revenue | | :--- | :--- | :--- | :--- | :--- | | Sales of Goods | 3,922,266 | 69.9% | 3,430,989 | 79.1% | | Furniture, Home Furnishings and Home Appliances | 3,276,838 | 58.4% | 2,883,923 | 66.5% | | Power Tools | 290,336 | 5.2% | 260,351 | 6.0% | | Other Products | 355,092 | 6.3% | 286,715 | 6.6% | | Logistics Solutions | 1,684,980 | 30.1% | 903,993 | 20.9% | | Total | 5,607,246 | 100.0% | 4,334,982 | 100.0% | Sales of Goods Revenue For the six months ended June 30, 2025, sales revenue from furniture, home furnishings, and home appliances increased by 13.6%, power tools by 11.5%, and other products by 23.8%, primarily driven by the expansion of new sales channels - Sales revenue from furniture, home furnishings, and home appliances increased by 13.6% to 3,276.8 Million RMB[53] - Sales revenue from power tools increased by 11.5% to 290.3 Million RMB[53] - Sales revenue from other products increased by 23.8% to 355.1 Million RMB, primarily due to the expansion of new sales channels (e.g., Tiktok, TEMU)[54] Logistics Solutions Revenue For the six months ended June 30, 2025, logistics solutions revenue significantly increased by 86.4% year-on-year to 1,685.0 Million RMB, mainly due to warehouse expansion, an enlarged customer base, increased order fulfillment, and enhanced "last-mile" services and warehousing facility capabilities - Logistics solutions revenue increased by 86.4% to 1,685.0 Million RMB[55] - Primarily due to warehouse expansion, an enlarged customer base, fulfillment of more orders, and enhanced "last-mile" services and warehousing facility capabilities[55] Costs and Gross Profit For the six months ended June 30, 2025, cost of sales increased by 40.4% year-on-year, leading to a decrease in gross margin from 34.2% to 28.6%; gross margins for both sales of goods and logistics solutions declined, primarily affected by rising ocean freight costs and promotional pricing for new warehouses to attract customers Cost of Sales For the six months ended June 30, 2025, cost of sales increased by 40.4% year-on-year to 4,004.9 Million RMB, primarily due to rising ocean freight costs for sales of goods and a substantial increase in operating costs from warehouse expansion in the logistics solutions business - Cost of sales increased by 40.4% from 2,851.5 Million RMB to 4,004.9 Million RMB[56] - Primarily due to rising ocean freight costs for sales of goods and a substantial increase in operating costs from warehouse expansion in the logistics solutions business[56] Gross Profit and Gross Margin For the six months ended June 30, 2025, gross profit increased by 8.0% to 1,602.4 Million RMB, but the gross margin decreased from 34.2% to 28.6%, with sales of goods gross margin falling to 36.5% and logistics solutions gross margin to 10.2%, mainly impacted by ocean freight costs and promotional pricing for new warehouses - Gross profit increased by 8.0% from 1,438.4 Million RMB to 1,602.4 Million RMB[57] - Gross margin decreased from 34.2% to 28.6%, primarily due to rising ocean freight costs for sales of goods and promotional pricing for new warehouses to attract new customers[57] - Sales of goods gross margin decreased from 38.9% to 36.5%, and logistics solutions gross margin decreased from 16.6% to 10.2%[57] Other Gains and Losses For the six months ended June 30, 2025, other gains significantly decreased by 128.5% from a gain of 41.0 Million RMB in the prior year to a loss of 11.7 Million RMB, primarily due to a decline in foreign exchange gains resulting from exchange rate fluctuations - Other gains significantly decreased by 128.5% from 41.0 Million RMB to a loss of 11.7 Million RMB[58] - Primarily due to a decline in foreign exchange gains resulting from exchange rate fluctuations[58] Impairment Losses Under Expected Credit Loss Model ("ECL"), Net of Reversals For the six months ended June 30, 2025, impairment losses under the expected credit loss model shifted from a loss of 3.4 Million RMB in the prior year to a reversal of 4.0 Million RMB, an increase of 216.6%, mainly due to a reduction in bad debts at Western Post Group - Impairment losses under the expected credit loss model increased by 216.6% from a loss of 3.4 Million RMB to a reversal of 4.0 Million RMB[59] - Primarily due to a reduction in bad debts at Western Post Group[59] Operating Expenses For the six months ended June 30, 2025, selling expenses, administrative expenses, and research and development expenses all increased; selling expenses grew by 18.6% in line with revenue growth but the selling expense ratio decreased; administrative expenses rose by 23.6% mainly due to increased employee and consulting fees; and R&D expenses increased by 43.5% primarily due to a higher number of R&D employees Selling Expenses For the six months ended June 30, 2025, selling expenses increased by 18.6% year-on-year to 1,071.0 Million RMB, generally consistent with revenue growth, while the selling expense ratio decreased from 20.8% to 19.1%, mainly due to changes in revenue structure - Selling expenses increased by 18.6% from 902.9 Million RMB to 1,071.0 Million RMB[60] - The selling expense ratio decreased from 20.8% to 19.1%, primarily due to changes in revenue structure[60] Administrative Expenses For the six months ended June 30, 2025, administrative expenses increased by 23.6% year-on-year to 195.2 Million RMB, primarily due to increased employee and consulting fees - Administrative expenses increased by 23.6% from 157.9 Million RMB to 195.2 Million RMB[61] - Primarily due to increased employee expenses and consulting fees[61] Research and Development Expenses For the six months ended June 30, 2025, research and development expenses increased by 43.5% year-on-year to 80.1 Million RMB, primarily due to an increase in the number of R&D employees - Research and development expenses increased by 43.5% from 55.9 Million RMB to 80.1 Million RMB[62] - Primarily due to an increase in the number of R&D employees[62] Finance Costs For the six months ended June 30, 2025, finance costs significantly increased by 192.3% year-on-year to 127.3 Million RMB, primarily due to expanded logistics solutions operations and new leased warehouses, leading to a corresponding increase in finance costs for related lease liabilities - Finance costs increased from 43.5 Million RMB to 127.3 Million RMB[63] - Primarily due to the expansion of logistics solutions operations and new leased warehouses, leading to a corresponding increase in finance costs for related lease liabilities[63] Net Profit For the six months ended June 30, 2025, net profit significantly decreased by 58.9% year-on-year to 116.6 Million RMB, primarily due to tariff policy adjustments and rising logistics costs for sales of goods, increased operating costs from new leased warehouses in the logistics solutions business, and higher investment costs for new incubation projects diluting profits - Net profit decreased by 58.9% from 283.9 Million RMB to 116.6 Million RMB[64] - Key reasons include tariff policy adjustments and rising logistics costs for sales of goods, a substantial increase in operating costs from new leased warehouses in the logistics solutions business, and higher investment costs for new incubation projects[64] Liquidity and Capital Resources Cash and Cash Equivalents As of June 30, 2025, the company's cash and cash equivalents amounted to 1,307.0 Million RMB, and the company believes its working capital is sufficient to meet current needs, primarily supported by net proceeds from the global offering, bank borrowings, and cash flows from operating activities - As of June 30, 2025, cash and cash equivalents amounted to 1,307.0 Million RMB[65] - The company believes its working capital is sufficient to meet current needs, primarily from net proceeds from the global offering, bank borrowings, and cash flows from operating activities[65] Cash Flow Analysis For the six months ended June 30, 2025, net cash from operating activities increased, but net cash outflow from investing activities decreased, and net cash from financing activities shifted from an inflow to an outflow, resulting in a decrease in cash and cash equivalents at period-end Cash Flow Statement Summary | Item | 2025 (Thousand RMB) | 2024 (Thousand RMB) | Change Rate | | :--- | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 271,099 | 239,683 | +13.1% | | Net Cash Used in Investing Activities | (269,382) | (372,911) | -27.7% | | Net Cash Generated From/(Used In) Financing Activities | (45,631) | 84,766 | -153.8% | | Net Decrease in Cash and Cash Equivalents | (43,914) | (48,462) | -9.3% | | Cash and Cash Equivalents at End of Period | 1,306,988 | 762,621 | +71.4% | Net Cash Generated from Operating Activities In the first half of 2025, net cash generated from operating activities was 271.1 Million RMB, an increase from 239.7 Million RMB in the first half of 2024 - In the first half of 2025, net cash generated from operating activities was 271.1 Million RMB, a year-on-year increase of 13.1%[66] Net Cash Used in Investing Activities In the first half of 2025, net cash used in investing activities was 269.4 Million RMB, a decrease from 372.9 Million RMB in the prior year, primarily due to outflows for property, plant and equipment purchases and pledged bank deposits, offset by net inflows from the disposal of wealth management products - In the first half of 2025, net cash outflow from investing activities was 269.4 Million RMB, a year-on-year decrease of 27.7%[67] - Primarily due to the purchase of property, plant and equipment of 89.0 Million RMB, a net outflow of pledged bank deposits of 215.1 Million RMB, and a net inflow of 16.0 Million RMB from the disposal of wealth management products[67] Net Cash Generated From/(Used In) Financing Activities In the first half of 2025, financing activities shifted from a net inflow in the prior year to a net outflow of 45.6 Million RMB, mainly due to increased inflows from new bank borrowings, but also increased outflows for dividend payments, repayment of lease liabilities, and share repurchases - In the first half of 2025, net cash outflow from financing activities was 45.6 Million RMB, compared to a net inflow of 84.8 Million RMB in the prior year[68] - Primarily due to a net inflow of new bank borrowings of 299.3 Million RMB, but increased outflows for bank interest payments, finance costs for Western Post Group's right-of-use assets, dividends paid, repayment of lease liabilities, and share repurchases[68] Contingent Liabilities and Capital Commitments As of June 30, 2025, the company had no significant contingent liabilities but had contracted capital commitments of 179.0 Million RMB not yet provided for, primarily for future investments in property, plant and equipment - As of June 30, 2025, the company had no significant contingent liabilities[69] - For the six months ended June 30, 2025, the Group had contracted capital commitments of 179.0 Million RMB not yet provided for, primarily for future investments in property, plant and equipment[70] Material Investments, Acquisitions and Disposals As of the end of the reporting period, the Group had no material investments requiring disclosure, nor did it undertake any material acquisitions or disposals during the reporting period - As of the end of the reporting period, the Group had no material investments requiring disclosure[71] - During the reporting period, the Group undertook no material acquisitions or disposals[71] Gearing Ratio As of June 30, 2025, the Group's gearing ratio increased from 1.3 as of December 31, 2024, to 1.4, primarily due to an increase in bank borrowings - The gearing ratio increased from 1.3 as of December 31, 2024, to 1.4 as of June 30, 2025[72] - Primarily due to an increase in bank borrowings[72] Other Important Information Employees, Training and Remuneration Policies As of June 30, 2025, the company had 2,661 employees, with product development, operations, sales, and marketing personnel accounting for the largest proportion; the company is committed to providing fair opportunities, competitive remuneration, and performance incentives, and enhances employee capabilities through onboarding and regular internal training, with total remuneration and benefits expenses of 336.4 Million RMB - As of June 30, 2025, the company had a total of 2,661 employees, mostly located in Shenzhen, China[73] Number of Employees by Function | Function | Number of Employees | % of Total | | :--- | :--- | :--- | | Product Development, Operations, Sales & Marketing | 1,354 | 50.90% | | Procurement & Supply Chain Management | 463 | 17.40% | | Administration/Functional | 459 | 17.20% | | Warehousing/Production | 385 | 14.50% | | Total | 2,661 | 100% | - The company provides competitive salaries, comprehensive insurance, and performance incentive plans, offering onboarding training for new employees and customized internal training for existing employees[74] - For the six months ended June 30, 2025, total employee remuneration and benefits expenses amounted to 336.4 Million RMB[75] Use of Proceeds from Global Offering The company listed in November 2024, with net proceeds of approximately 387.5 Million HKD; given changes in tariff policies, the utilization period for the raised funds has been adjusted to before June 30, 2026, primarily for business expansion (80%), digitalization enhancement (5%), and working capital (15%); as of the end of the reporting period, 46.9 Million HKD had been utilized - The company was listed on the Main Board of the HKEX on November 8, 2024, with net proceeds of approximately 387.5 Million HKD[76] - Given changes in tariff policies, the utilization period for the raised funds has been adjusted to before June 30, 2026[76] Use of Net Proceeds Plan | Item | Percentage | Amount for Related Use (Million HKD) | Amount Utilized During Reporting Period (Million HKD) | Amount Unutilized at End of Reporting Period (Million HKD) | Expected Timeline for Full Utilization of Unutilized Amount | | :--- | :--- | :--- | :--- | :--- | :--- | | Business Expansion | 80.0% | 310.0 | 42.0 | 268.0 | Before June 30, 2026 | | Enhance Digitalization and Further Improve Information Management Systems | 5.0% | 19.375 | 0 | 19.375 | Before June 30, 2026 | | Working Capital and General Corporate Purposes | 15.0% | 58.125 | 4.90 | 53.225 | Before June 30, 2026 | | Total | 100% | 387.5 | 46.9 | 340.6 | | Interim Dividend The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025[77] Corporate Governance Practices The company has adopted the Corporate Governance Code as set out in Appendix C1 of the Listing Rules and complied with all applicable code provisions in the first half of 2025, except for the combined roles of Chairman and Chief Executive Officer held by Mr. Lu Haichuan, which the Board believes facilitates consistent leadership and efficient decision-making and will be continuously reviewed - The company has adopted the principles and code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules[78] - The roles of Chairman and Chief Executive Officer are combined and held by Mr. Lu Haichuan, deviating from Code Provision C.2.1, but the Board believes this facilitates consistent leadership and efficient strategic planning[78] - Except for the aforementioned deviation, the Board believes that the company has complied with all applicable code provisions of the Corporate Governance Code in the first half of 2025[79] Securities Transactions and Share Movements The company has adopted the Standard Code to regulate securities transactions by directors and employees; during the reporting period, the company did not purchase, sell, or redeem any listed securities, and 187,093,658 domestic unlisted shares were converted to H-shares and listed on the HKEX in May 2025, achieving "full circulation" Standard Code for Securities Transactions The company has adopted the Standard Code as set out in Appendix C3 of the Listing Rules as a code of conduct for directors and employees who may possess inside information to deal in the company's securities; all directors have confirmed compliance with the code in the first half of 2025 - The company has adopted the Standard Code as set out in Appendix C3 of the Listing Rules to regulate securities transactions by directors and employees who may possess inside information[81] - All directors have confirmed compliance with the Standard Code in the first half of 2025[81] Purchase, Sale or Redemption of the Company's Listed Securities In the first half of 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities, and as of June 30, 2025, the company held no treasury shares - In the first half of 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[82] - As of June 30, 2025, the company did not hold any treasury shares[82] "Full Circulation" of Domestic Unlisted Shares In May 2025, 187,093,658 domestic unlisted shares of the company were converted to H-shares and commenced trading on the HKEX from May 23, 2025, achieving "full circulation" - On May 13, 2025, the company converted 187,093,658 domestic unlisted shares into H-shares and filed with the China Securities Regulatory Commission[83] - The HKEX granted approval for the listing and trading of these H-shares on May 20, 2025[83] - These converted H-shares commenced trading on the HKEX from 9:00 a.m. on May 23, 2025[83] Events After Reporting Period No significant events have occurred for the Group from the end of the reporting period up to the date of this announcement - No significant events have occurred for the Group from the end of the reporting period up to the date of this announcement[84] Audit Committee and Review The company has established an Audit Committee comprising three independent non-executive directors, which has reviewed the Group's accounting principles and policies, as well as the interim results for the six months ended June 30, 2025; independent auditor Deloitte Touche Tohmatsu has reviewed the condensed consolidated interim financial information - The Audit Committee comprises three independent non-executive directors, with Ms. Meng Rongfang as Chairman[85] - The Audit Committee has reviewed the Group's accounting principles and policies and the interim results for the six months ended June 30, 2025[85] - Independent auditor Deloitte Touche Tohmatsu has reviewed the condensed consolidated interim financial information in accordance with Hong Kong Standard on Review Engagements 2410[86] Publication of Interim Results Announcement and Interim Report This interim results announcement has been published on the HKEX website and the company's website, and the interim report will be dispatched to shareholders and made available on the aforementioned websites when appropriate - This interim results announcement is published on the HKEX website (www.hkexnews.hk) and the **company's website (www.augroup.com)**[87](index=87&type=chunk) - The company's interim report for the six months ended June 30, 2025, will be dispatched to shareholders who require a printed copy and will be available on the aforementioned websites when appropriate[87]