富银融资股份(08452) - 2025 - 中期业绩

Report Foreword and Company Overview This section introduces the company's interim results announcement and provides an overview of its corporate structure Announcement Statement and Company Profile This announcement presents Fuyin Financial Leasing (Shenzhen) Co., Ltd.'s unaudited interim results for H1 2025, highlighting GEM market characteristics and investment risks - This announcement presents the unaudited consolidated results of Fuyin Financial Leasing (Shenzhen) Co., Ltd. for the six months ended June 30, 2025[2][4] - The HKEX GEM market is positioned as a listing platform for small and medium-sized companies, carrying higher investment risks, thus investors should exercise prudence[3] Board Members and Responsibility Statement The announcement lists the company's board members and emphasizes their collective responsibility for the accuracy and completeness of the content - Board members include executive directors Mr. Li Peng (Chairman), Mr. Weng Jianxing, Ms. Gong Xiaoting, non-executive directors Mr. Peng Qilei, Ms. Liu Jing, and independent non-executive directors Mr. Liu Shengwen, Mr. Han Liang, Mr. Tong Qiang[7] - All directors jointly and individually assume full responsibility for this announcement, confirming the information contained is accurate, complete, and free from misleading or fraudulent content[7] Company Information This section details the company's governance structure, registration, and key operational contacts Board of Directors, Supervisory Committee, and Committees The company details the members of its Board, Supervisory Committee, and various committees, including recent appointment changes - The Board of Directors comprises executive, non-executive, and independent non-executive directors, with Mr. Li Peng serving as Chairman[9] - Mr. Zhu Xiaodong chairs the Supervisory Committee, and Ms. Li Juan was appointed as a staff representative supervisor on March 31, 2025[9] - The Audit Committee, Nomination Committee, and Remuneration Committee are all chaired or primarily composed of independent non-executive directors, ensuring the independence of corporate governance[9] Registration and Principal Place of Business The company is registered in Shenzhen, China, with its principal place of business in Hong Kong, and discloses key information on auditors, legal counsel, and banks - The company's registered office is located in Qianhai Shenzhen-Hong Kong Cooperation Zone, Shenzhen, Guangdong, China, with its China head office in Futian District, Shenzhen[10] - The principal place of business in Hong Kong is situated at Dah Sing Financial Centre, Queen's Road East, Wan Chai[10] - Shinewing (HK) CPA Limited serves as the auditor, and legal counsel includes Sidley Austin and Beijing Tian Yuan Law Firm[10] Management Discussion and Analysis This section provides an in-depth review of the Group's business performance, financial results, and strategic outlook for the reporting period Business Review and Outlook The Group achieved significant revenue growth and narrowed net loss in H1 2025 amidst a complex economic environment, with a future focus on expanding its energy storage business 2025 H1 Key Financial Performance | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Year-on-Year Growth Rate | | :--- | :--- | :--- | :--- | | Total Revenue | 46.61 | 25.20 | 84.96% | | Net Loss | (1.39) | (2.97) | 53.20% (Loss narrowed) | - The Group's main businesses include financial leasing, factoring, consulting services, medical equipment supply, energy storage business, and cross-border e-commerce business[12] - The energy storage business adheres to the strategic goal of "doing well in energy storage and utilizing energy storage effectively," developing industrial and commercial energy storage and power storage to expand market and enhance competitiveness[13] - The cross-border e-commerce business adjusted its product operation strategy, delisting loss-making products, and improving sales and profitability of profitable products, resulting in reduced losses compared to the same period last year[13] - Looking ahead, the Group will continue to adopt a prudent financial management strategy and further develop its energy storage business to expand its revenue base[14] Financial Review The Group's H1 2025 revenue surged 84.96% to RMB 46.61 million, driven by energy storage and cross-border e-commerce, while administrative expenses decreased 31.70% due to cost controls 2025 H1 Key Financial Indicators Changes | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | | Revenue | 46.61 | 25.20 | +84.96% | | Cost of Sales | 33.71 | 12.52 | +169.24% | | Other Income and Gains | 1.36 | 2.59 | -47.54% | | Operating Expenses | 3.59 | 2.63 | +36.64% | | Administrative Expenses | 9.38 | 13.74 | -31.70% | | Impairment Provision for Accounts Receivable | 1.35 | 1.37 | -1.46% | | Income Tax Expense | 0.33 | 1.11 | -70.36% | - Revenue growth was primarily due to increased income from energy storage business and cross-border e-commerce business[15] - The decrease in administrative expenses was mainly due to the implementation of cost control measures[19] Financial Position Analysis As of June 30, 2025, total assets slightly increased by 0.38% to RMB 559.64 million, with accounts receivable accounting for nearly 60%, and the gearing ratio slightly rose to 21.23% Financial Position as of June 30, 2025 | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | | Total Assets | 559.64 | 557.54 | +0.38% | | Accounts Receivable | 333.33 | 313.15 | +6.44% | | Total Liabilities | 118.79 | 115.23 | +3.04% | | Gearing Ratio | 21.23% | 20.68% | +0.55% | | Bank Borrowings Repayable within One Year | 10.00 | 10.00 | 0% | - Accounts receivable accounted for approximately 59.56% of the Group's total assets[22] Cash Flow Analysis The Group's operating cash flow turned from net outflow to net inflow of RMB 0.53 million, and investing cash flow also turned to net inflow of RMB 1.56 million, while financing cash flow became a net outflow of RMB 0.48 million 2025 H1 Cash Flow | Activity Type | 2025 H1 (RMB million) | 2024 H1 (RMB million) | | :--- | :--- | :--- | | Net Cash from (Used in) Operating Activities | +0.53 (Inflow) | (21.30) (Outflow) | | Net Cash from (Used in) Investing Activities | +1.56 (Inflow) | (7.26) (Outflow) | | Net Cash (Used in) from Financing Activities | (0.48) (Outflow) | +4.23 (Inflow) | Capital Management The Group aims to ensure continuous operation and provide adequate shareholder returns by balancing high returns with a sound capital structure, with no changes to objectives - The capital management objective is to ensure continuous operation and provide adequate returns to equity holders[24] - During the reporting period, the Group made no changes to its capital management objectives, policies, or procedures[24] Capital Expenditure Due to the nature of its business, the Group's capital expenditure is minimal, primarily for office equipment, with no significant capital expenditure during the reporting period - The Group's capital expenditure is minimal, primarily for office equipment expenses[25] - During the reporting period, the Group incurred no significant capital expenditure[25] Risk Management and Internal Control System The Group maintains a comprehensive risk management and internal control system covering credit, liquidity, interest rate, operational, and legal compliance risks, which the Board deems effective and adequate - The Group is committed to maintaining a comprehensive risk management and internal control system to address various risks and enhance risk control capabilities[26] - The internal audit department is responsible for analyzing and evaluating the risk management and internal control system, with results reported to the Audit Committee and the Board[27] - The Board considers the risk management and internal control system effective and adequate in all material aspects[27] Human Resources As of June 30, 2025, the Group's full-time employees decreased to 64, leading to a 44.60% year-on-year reduction in employee benefit expenses, with compensation based on market conditions, experience, and performance Employee Count and Benefit Expense Changes | Indicator | June 30, 2025 | June 30, 2024 | Change Rate | | :--- | :--- | :--- | :--- | | Full-time Employees | 64 | 86 | -25.58% | | Employee Benefit Expenses (RMB million) | 0.52 | 0.94 | -44.60% | - The decrease in employee benefit expenses was primarily due to a reduction in the number of full-time employees[28] Contingent Liabilities As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[29] Capital Commitments As of June 30, 2025, the Group had no contracted but unprovided capital commitments, except for disclosed major acquisitions or disposals and significant investments - As of June 30, 2025, the Group had no contracted but unprovided capital commitments, except for those disclosed in item 13[30] Liquidity, Financial Resources, and Capital Structure As of June 30, 2025, the Group's net current assets and cash and cash equivalents both increased, while bank borrowings remained stable Liquidity Position | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Net Current Assets | 297.83 | 294.83 | | Cash and Cash Equivalents | 27.69 | 26.08 | | Bank Borrowings Repayable within One Year | 10.00 | 10.00 | Events After Reporting Period No other significant events affecting the Group occurred after the reporting period, apart from those already disclosed in this report - No other significant events affecting the Group occurred after the reporting period, apart from those disclosed in this report[32] Major Acquisitions or Disposals and Significant Investments The Group completed the disposal of 5G base station assets during the period and holds significant investments in associates and financial assets at fair value through profit or loss, primarily in strategic emerging industries - The Group's non-wholly owned subsidiary sold 18 base stations and 105 base stations for a total consideration of RMB 999,670.5 and RMB 8,750,000, respectively[33][34] - The Group's investment strategy aims to indirectly participate in rapidly developing industries with broad market prospects and explore potential business cooperation opportunities[36] Significant Investment Details as of June 30, 2025 | Investment Name | Investment Cost (RMB thousand) | Shareholding Percentage | Percentage of Total Assets Book Value | Book Value/Fair Value (RMB thousand) | Share of (Loss) Profit (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | | Shanghai Kuaiyi Mingshang Cloud Technology Co., Ltd. | 50,000 | 20.81% | 8.93% | 45,760 | (806) | | Zhuhai Huihe Guangjing Venture Capital Fund (Limited Partnership) | 30,000 | 33.57% | 5.36% | 18,207 | – | | Beijing Shuncheng Health Investment Enterprise (Limited Partnership) | 30,000 | 9.9% | 5.36% | 22,202 | – | Pledged Assets As of June 30, 2025, the Group had no pledged assets - As of June 30, 2025, the Group had no pledged assets[39] Exchange Rate Risk The Group's income, expenses, assets, and liabilities are primarily denominated in RMB, with no significant impact from exchange rate fluctuations on operating liquidity or hedging activities during the period - The Group's income and expenses are primarily denominated in RMB, as are most assets and liabilities[40] - During the reporting period, the Group experienced no significant impact or difficulties on operating liquidity due to exchange rate fluctuations, nor did it engage in hedging transactions or forward contract arrangements[40] Future Plans for Major Investments or Capital Assets As of June 30, 2025, the Group had no specific plans for acquiring any major investments or capital assets, other than those disclosed in major acquisitions or disposals and significant investments - As of June 30, 2025, the Group had no specific plans for acquiring any major investments or capital assets, other than those disclosed in item 13 above[41] Other Information This section covers corporate governance, shareholder disclosures, and other statutory information Audit Committee The Company's Audit Committee, comprising three independent non-executive directors, has reviewed the Group's unaudited condensed consolidated interim financial statements and interim report for the six months ended June 30, 2025 - The Audit Committee comprises three independent non-executive directors: Mr. Liu Shengwen (Chairman), Mr. Han Liang, and Mr. Tong Qiang[44] - The Audit Committee has reviewed the Group's unaudited condensed consolidated interim financial statements and interim report for the six months ended June 30, 2025[45] Disclosure of Interests As of June 30, 2025, major shareholders and other persons held interests in the Company's shares, with Beijing Dayuan Tiandi Real Estate Development Co., Ltd. and its associates holding 22.26% and Shenzhen Zhonglian Jinkong Investment Development Co., Ltd. and its associates holding 19.60% Major Shareholder Interests as of June 30, 2025 | Shareholder Name/Individual | Share Type | Nature of Interest | Number of Shares with Interest in Total Share Capital of the Company | Percentage (Approx.) | | :--- | :--- | :--- | :--- | :--- | | Beijing Dayuan Tiandi Real Estate Development Co., Ltd. | Domestic Shares | Beneficial Owner | 80,000,000 | 22.26% | | Mr. Zhao Dehua | Domestic Shares | Interest of Controlled Corporation | 80,000,000 | 22.26% | | Mr. Gong Liang | Domestic Shares | Interest of Controlled Corporation | 80,000,000 | 22.26% | | Shenzhen Zhonglian Jinkong Investment Development Co., Ltd. | Unlisted Foreign Shares/Domestic Shares | Beneficial Owner | 75,445,200 | 19.60% | | Hainan Mujing Chengyuan Technology Partnership (Limited Partnership) | Unlisted Foreign Shares/Domestic Shares | Interest of Controlled Corporation | 75,445,200 | 19.60% | | Mr. Gong Changjiu | Unlisted Foreign Shares/Domestic Shares | Interest of Controlled Corporation | 75,445,200 | 19.60% | | Mr. Xu Dongsheng | Unlisted Foreign Shares/Domestic Shares | Interest of Controlled Corporation | 75,445,200 | 19.60% | | Beijing Youke Yu Technology Development Co., Ltd. | Unlisted Foreign Shares | Beneficial Owner | 46,714,200 | 13.00% | | Beijing Hengsheng Rongcheng Commercial and Trading Co., Ltd. | Unlisted Foreign Shares | Beneficial Owner | 32,340,600 | 9.00% | | KKC Capital Limited | H Shares | Investment Manager | 9,408,000 | 2.62% | | A Plus Capital Management Limited | H Shares | Investment Manager | 9,318,000 | 2.59% | - The Company has a total of 359,340,000 shares issued, including 120,000,000 domestic shares, 89,840,000 H shares, and 149,500,000 unlisted foreign shares[47] Securities Interests of Directors, Supervisors, and Chief Executive As of June 30, 2025, no directors, supervisors, or chief executive of the Company held any disclosable interests or short positions in the shares, underlying shares, or debentures of the Company or its associated corporations - As of June 30, 2025, no directors, supervisors, or chief executive of the Company held any disclosable interests or short positions in the shares, underlying shares, or debentures of the Company or its associated corporations[50] Dividends The Board does not recommend the payment of any interim dividend for the reporting period - The Board does not recommend the payment of any interim dividend for the reporting period[51] Purchase, Sale, or Redemption of the Company's Listed Securities During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and the Company held no treasury shares - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[52] - As of June 30, 2025, and up to the date of this report, the Company held no treasury shares[52] Competing Interests As of June 30, 2025, no directors, controlling shareholders of the Company, or their respective close associates had any interests in businesses competing or potentially competing with the Group's business - As of June 30, 2025, no directors, controlling shareholders of the Company, or their respective close associates had any interests in any business competing or potentially competing with the Group's business[53] Securities Transactions by Directors and Supervisors The Group has adopted a code of conduct for securities transactions by directors and supervisors, and all have confirmed compliance with the required standards - The Group has adopted a code of conduct for securities transactions by directors and supervisors, with terms no less exacting than the required standards set out in the GEM Listing Rules[54] - All directors and supervisors confirmed their compliance with the required standards and code of conduct for the six months ended June 30, 2025[54] Changes in Information of Directors and Supervisors There were no changes in the information of directors and supervisors requiring disclosure under the GEM Listing Rules - No changes in the information of directors and supervisors requiring disclosure under Rule 17.50A(1) of the GEM Listing Rules[55] Corporate Governance and Culture The Company is committed to high corporate governance standards and core values of integrity, responsibility, and innovation, acknowledging a deviation where the Chairman and CEO roles are held by the same person for operational efficiency - The Company has adopted the principles set out in the Corporate Governance Code, committed to maintaining high standards of corporate governance practices[57] - The Group's core principles include integrity and code of conduct, honesty, responsibility, innovation, and dedication, aiming to build a strong and efficient workforce[59][60] - A deviation exists where the roles of Chairman and Chief Executive Officer are combined and held by Mr. Li Peng, which the Board believes facilitates business strategy execution and maximizes operational efficiency[61] Share Incentive Scheme The Group had no share incentive scheme during the reporting period - The Group had no share incentive scheme during the reporting period[62] Condensed Consolidated Interim Financial Statements This section presents the Group's condensed consolidated interim financial statements, including the statement of profit or loss, financial position, changes in equity, and cash flows Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the Group's revenue from continuing operations was RMB 46.613 million, with a gross profit of RMB 12.901 million, and a narrowed loss for the period Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 46,613 | 25,202 | | Cost of Sales | (33,712) | (12,521) | | Gross Profit | 12,901 | 12,681 | | Loss Before Income Tax | (1,067) | (1,795) | | Income Tax Expense | (329) | (1,110) | | Loss and Total Comprehensive Expenses for the Period | (1,394) | (2,973) | | Loss Attributable to Owners of the Company for the Period | (1,137) | 258 (Profit) | | Basic and Diluted Loss Per Share (RMB cents) | (0.32) | 0.04 (Earnings) | Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets were RMB 559.642 million, with current assets at RMB 416.178 million, total liabilities at RMB 118.785 million, and net assets at RMB 440.857 million Summary of Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current Assets | 143,464 | 147,481 | | Current Assets | 416,178 | 410,055 | | Total Assets | 559,642 | 557,536 | | Current Liabilities | 118,347 | 115,229 | | Non-current Liabilities | 438 | 56 | | Net Assets | 440,857 | 442,251 | | Equity Attributable to Owners of the Company | 435,835 | 436,972 | | Non-controlling Interests | 5,022 | 5,279 | | Total Equity | 440,857 | 442,251 | - Accounts receivable amounted to RMB 333,329 thousand, representing a significant portion of current assets[66] Condensed Consolidated Statement of Changes in Equity For the six months ended June 30, 2025, the loss attributable to owners of the Company was RMB 1.137 million, reducing total equity attributable to owners from RMB 436.972 million to RMB 435.835 million Summary of Condensed Consolidated Statement of Changes in Equity | Indicator | January 1, 2025 (RMB thousand) | Loss and Total Comprehensive Expenses for the Period (RMB thousand) | June 30, 2025 (RMB thousand) | | :--- | :--- | :--- | :--- | | Total Attributable to Owners of the Company | 436,972 | (1,137) | 435,835 | | Non-controlling Interests | 5,279 | (257) | 5,022 | | Total Equity | 442,251 | (1,394) | 440,857 | - In the corresponding period of 2024, profit attributable to owners of the Company was RMB 258 thousand[70] Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2025, the Group generated net cash of RMB 0.531 million from operating activities and RMB 1.561 million from investing activities, while using RMB 0.479 million in financing activities, increasing cash and cash equivalents to RMB 27.690 million Summary of Condensed Consolidated Statement of Cash Flows | Activity Type | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Cash from (Used in) Operating Activities | 531 | (21,299) | | Net Cash from (Used in) Investing Activities | 1,561 | (7,258) | | Net Cash (Used in) from Financing Activities | (479) | 4,228 | | Net Increase (Decrease) in Cash and Cash Equivalents | 1,613 | (24,329) | | Cash and Cash Equivalents at End of Period | 27,690 | 37,934 | - Operating cash flow turned from a net outflow in the prior year to a net inflow, indicating improved operating conditions[72] Notes to the Condensed Consolidated Interim Financial Statements This section provides detailed notes and explanations supporting the condensed consolidated interim financial statements General Information Fuyin Financial Leasing (Shenzhen) Co., Ltd., established in China in 2012 and listed on HKEX GEM in 2017, engages in diverse financial and energy storage businesses - The Company was established in China on December 7, 2012, and has been listed on the HKEX GEM since May 23, 2017[73] - Principal businesses include financial leasing, consulting services, customer referral services, as well as factoring, medical equipment supply, investment holding, and energy storage business[73] Basis of Preparation The Group's condensed consolidated financial statements are prepared in RMB in accordance with HKAS 34 and applicable GEM Listing Rules disclosure requirements - The condensed consolidated financial statements are prepared in accordance with HKAS 34 issued by the HKICPA and the applicable disclosure requirements of Chapter 18 of the GEM Listing Rules[74] - The financial statements are presented in RMB, which is also the functional currency of the Group's principal subsidiaries[74] Application of Amendments to Hong Kong Financial Reporting Standards The Group first applied HKAS 21 (Amendment) "Lack of Exchangeability" during this interim period, with no significant impact expected on current or future periods - The Group first applied HKAS 21 (Amendment) "Lack of Exchangeability" issued by the HKICPA during this interim period[75] - The aforementioned standard has no impact on the Group's accounting policies and is not expected to have a significant impact on the current or future periods[75] Segment Information The Group has three reportable segments: financial and consulting, trading operations, and energy storage, with energy storage showing significant revenue growth and all revenue and non-current assets primarily from China - The Group has three reportable segments: financial and consulting business, trading operations business, and energy storage business[76][78] 2025 H1 Revenue by Segment | Segment | 2025 H1 Revenue (RMB thousand) | 2024 H1 Revenue (RMB thousand) | | :--- | :--- | :--- | | Financial and Consulting Business | 6,816 | 11,699 | | Trading Operations Business | 14,066 | 12,453 | | Energy Storage Business | 25,731 | 1,050 | | Total | 46,613 | 25,202 | - All of the Group's revenue and non-current assets are primarily derived from China[79] - For the six months ended June 30, 2025, no single customer contributed 10% or more of the Group's revenue[79] Revenue The Group's total revenue from continuing operations for H1 2025 was RMB 46.613 million, primarily from energy storage services and sales of electronic products, while factoring income decreased 2025 H1 Revenue from Continuing Operations Analysis | Revenue Source | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Energy Storage Service Income | 25,731 | 1,050 | | Sales of Goods – Electronic Products | 14,066 | 12,453 | | Finance Lease Income | – | 9 | | Sale and Leaseback Transaction Income | 540 | 111 | | Factoring Income | 6,276 | 11,579 | | Total | 46,613 | 25,202 | - Revenue from contracts with customers, disaggregated by timing of recognition, includes RMB 14,066 thousand recognized at a point in time and RMB 25,731 thousand recognized over time[80] Other Income and Gains and Losses The Group's total other income and gains for H1 2025 decreased to RMB 1.356 million from RMB 2.585 million in the prior year, mainly due to reduced maintenance service income 2025 H1 Other Income and Gains | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Bank Interest Income | 85 | 248 | | Net Exchange Gain or Loss | 153 | – | | Maintenance Service Income | 1,027 | 1,901 | | Others | 91 | 2 | | Total | 1,356 | 2,585 | - Maintenance service income decreased from RMB 1.901 million to RMB 1.027 million, being the primary reason for the decline in other income[82] Loss Before Tax The Group's loss before tax for H1 2025 was RMB 1.067 million, primarily composed of cost of sales, staff costs, depreciation, and impairment losses 2025 H1 Loss Before Tax Components | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Cost of Sales | 33,712 | 12,521 | | Staff Costs | 6,789 | 9,383 | | Depreciation of Property, Plant and Equipment | 174 | 556 | | Depreciation of Right-of-Use Assets | 505 | 575 | | Net Impairment Loss on Finance Lease Receivables and Accounts Receivable | 1,351 | 1,377 | - Staff costs (including directors' emoluments) decreased from RMB 9.383 million to RMB 6.789 million[83] Discontinued Operations The Group entered into an asset transfer agreement on May 16, 2024, to dispose of its 5G base station business segment, which is classified as a discontinued operation, generating a pre-tax profit of RMB 2 thousand despite the disposal not yet being completed - The Group disposed of assets from its 5G base station business segment to optimize resource allocation and enhance operational quality and efficiency[84] - As of June 30, 2025, the disposal had not yet been completed and is expected to be completed within the next twelve months[84] 2025 H1 Discontinued Operations Performance | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Revenue | – | 808 | | Profit (Loss) Before Tax | 2 | (57) | | Profit (Loss) for the Period | 2 | (68) | Income Tax Expense The Group's income tax expense for H1 2025 was RMB 0.329 million, a significant 70.36% decrease from the prior year, mainly due to reduced income tax provisions 2025 H1 Income Tax Expense | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Income Tax | 329 | 1,074 | | Deferred Tax | – | 36 | | Total | 329 | 1,110 | - Provision for PRC corporate income tax is calculated at a statutory tax rate of 25%[88] (Loss) Earnings Per Share The basic and diluted loss per share attributable to owners of the Company was RMB 0.32 cents, primarily from continuing operations 2025 H1 (Loss) Earnings Per Share | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | (Loss) Profit for the Year Attributable to Owners of the Company Used for Calculating Basic and Diluted (Loss) Earnings Per Share | | | | From Continuing Operations | (1,138) | (7,463) | | From Discontinued Operations | 1 | 590 | | Number of Ordinary Shares | 359,340,000 | 359,340,000 | | Basic and Diluted (Loss) Earnings Per Share (RMB cents) | | | | From Continuing Operations | (0.32) | (2.08) | | From Discontinued Operations | – | 0.17 | | Total Basic (Loss) Earnings Per Share | (0.32) | (1.91) | Dividends No dividends were paid or proposed for the six months ended June 30, 2025, nor were any proposed since the end of the reporting period - No dividends were paid or proposed for the six months ended June 30, 2025[90] Property, Plant and Equipment and Right-of-Use Assets For the six months ended June 30, 2025, the Group added RMB 24 thousand in property, plant and equipment and RMB 683 thousand in right-of-use assets, with no write-offs or disposals during the period 2025 H1 Additions to Property, Plant and Equipment/Right-of-Use Assets | Asset Type | 2025 H1 Additions (RMB thousand) | 2024 H1 Additions (RMB thousand) | | :--- | :--- | :--- | | Property, Plant and Equipment | 24 | 446 | | Right-of-Use Assets | 683 | 11 | - No write-offs or disposals of property, plant and equipment occurred for the six months ended June 30, 2025[91] Financial Assets at Fair Value Through Profit or Loss As of June 30, 2025, the Group's total financial assets at fair value through profit or loss amounted to RMB 69.465 million, primarily investments in Puqiang Times, Zhuhai Huihe, Beijing Shuncheng, Shenzhen Shenchuang, and Yixing, with a partial capital refund from Zhuhai Huihe Financial Assets at Fair Value Through Profit or Loss as of June 30, 2025 | Investment Name | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Puqiang Times Preferred Shares | 5,723 | 5,723 | | Equity in Zhuhai Huihe | 18,207 | 19,817 | | Equity in Beijing Shuncheng | 22,202 | 22,202 | | Shenzhen Shenchuang Ordinary Shares | 14,350 | 14,350 | | Equity in Yixing | 8,983 | 8,983 | | Total | 69,465 | 71,075 | - The Group received a partial capital investment refund of RMB 1.610 million from Zhuhai Huihe, with no change in ownership after withdrawal[94] - No fair value gains or losses were recognized for most financial assets during the period ended June 30, 2025[94] Finance Lease Receivables As of June 30, 2025, the present value of minimum lease payments for the Group's finance lease receivables was RMB 10.790 million, reduced to RMB 0.418 million after credit loss provisions, with all receivables overdue by more than 180 days classified as credit-impaired Finance Lease Receivables as of June 30, 2025 | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Present Value of Minimum Lease Payments | 10,790 | 10,977 | | Less: Provision for Credit Losses | (10,372) | (8,967) | | Net Amount | 418 | 2,010 | - Finance lease receivables overdue by more than 180 days amounted to RMB 418 thousand, classified as overdue and credit-impaired[96] - Provision for impairment losses on finance lease receivables increased from RMB 8.967 million at the beginning of the year to RMB 10.372 million[96] Accounts Receivable As of June 30, 2025, the Group's total accounts receivable amounted to RMB 333.329 million, primarily comprising factoring receivables with recourse and trade receivables, with detailed aging analysis and credit quality assessments Accounts Receivable Composition as of June 30, 2025 | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Sale and Leaseback Receivables | 6,574 | 7,854 | | Factoring Receivables with Recourse | 215,241 | 205,351 | | Trade Receivables | 108,567 | 96,340 | | Operating Lease Receivables | 2,947 | 4,406 | | Total Accounts Receivable Less Provision for Credit Losses | 333,329 | 313,951 | - The effective interest rate for sale and leaseback receivables is 6.14%, with an overdue interest rate of 0.1% per day[102][101] - Factoring receivables have a credit period of 0 to 30 days, with an overdue interest rate of 0.1% per day[105][107] - Trade receivables have a credit period of 0 to 30 days; as of June 30, 2025, amounts overdue within 30 days were RMB 30,036 thousand[113][112] Trade and Other Payables As of June 30, 2025, the Group's total trade and other payables amounted to RMB 98.306 million, with trade payables at RMB 88.780 million and an average credit period of 30 days Trade and Other Payables as of June 30, 2025 | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Payables | 88,780 | 86,814 | | Accrued Expenses | 78 | 1,707 | | Deposits from Finance Lease Customers | 266 | 582 | | VAT Payable | 3,615 | 4,166 | | Others | 5,567 | 806 | | Total | 98,306 | 94,075 | - The average credit period for purchases of goods for the period ended June 30, 2025, was 30 days[122] Bank Borrowings As of June 30, 2025, the Group's unsecured bank borrowings repayable within one year amounted to RMB 10.000 million, bearing fixed annual interest rates from 2.95% to 3.05% Bank Borrowings as of June 30, 2025 | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Unsecured Bank Borrowings Classified as Current Liabilities | 10,000 | 10,000 | | Book Value of Bank Borrowings Repayable within One Year | 10,000 | 10,000 | - Bank borrowings are denominated in RMB, bear fixed annual interest rates from 2.95% to 3.05%, and are used for operating purposes[123] Share Capital As of June 30, 2025, the Company's total registered domestic and H share capital was 359,340,000 shares, amounting to RMB 359.340 million, consistent with 2024 Share Capital as of June 30, 2025 | Item | Number of Shares | RMB thousand | | :--- | :--- | :--- | | Registered Domestic Shares and H Shares | 359,340,000 | 359,340 | Related Party Transactions The Group and its related parties engaged in factoring income and lease payments, with total receivables from related companies amounting to RMB 22.900 million as of June 30, 2025, and key management personnel emoluments at RMB 1.274 million 2025 H1 Related Party Transaction Income | Related Party Name | Nature of Transaction | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | :--- | | Dayuan Tiandi | Factoring Transaction Income | 212 | 381 | | Longding Huayuan | Factoring Transaction Income | 546 | 1,098 | | Longding Huayuan | Lease Payments | 82 | 82 | | Longding Huayuan | Lease Liability Interest | 4 | 7 | Receivables from Related Companies as of June 30, 2025 | Related Party Name | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Longding Huayuan Factoring Receivables | 22,900 | 22,900 | | Dayuan Tiandi Factoring Receivables | – | 7,950 | | Total | 22,900 | 30,850 | 2025 H1 Key Management Personnel Emoluments | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Salaries, Allowances, and Benefits in Kind | 1,216 | 855 | | Contributions to Defined Contribution Plans | 58 | 55 | | Total | 1,274 | 910 | Capital Commitments As of June 30, 2025, the Group's contracted but unprovided capital commitments primarily involved an investment in a fund, totaling RMB 12.023 million Capital Commitments as of June 30, 2025 | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Commitment to Invest in a Fund | 12,023 | 6,000 | Contingent Liabilities As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[130] Financial Instruments Measured at Fair Value As of June 30, 2025, the Group's financial instruments measured at fair value through profit or loss totaled RMB 69.465 million, primarily classified within Level 3 (unobservable inputs) and Level 2 (observable inputs) - Fair value measurements are categorized into Level 1 (quoted prices in active markets), Level 2 (observable inputs), and Level 3 (unobservable inputs)[131] 2025 H1 Financial Instruments Measured at Fair Value by Hierarchy | Item | Level 1 (RMB thousand) | Level 2 (RMB thousand) | Level 3 (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Financial Assets at Fair Value Through Profit or Loss | | | | | | – Preferred Shares of Unlisted Investments | – | – | 5,723 | 5,723 | | – Equity in Zhuhai Huihe | – | – | 18,207 | 18,207 | | – Equity in Beijing Shuncheng | – | – | 22,202 | 22,202 | | – Equity in Shenzhen Shenchuang | – | 14,350 | – | 14,350 | | – Equity in Yixing | – | – | 8,983 | 8,983 | | Total | – | 14,350 | 55,115 | 69,465 | - No transfers between levels occurred during the period[132]