长城微光(08286) - 2025 - 中期财报

GEM Market Characteristics and Report Statement This section details GEM market risks and clarifies directors' full responsibility for report accuracy GEM Market Characteristics The GEM market for SMEs carries high investment risks, significant volatility, and no liquidity guarantee - The GEM market is positioned for small and medium-sized companies, entailing higher investment risks, greater market volatility, and no guaranteed liquidity[2] Report Statement and Directors' Responsibilities Hong Kong Exchanges and the Stock Exchange are not responsible for this report, with directors assuming full responsibility for its accuracy - Hong Kong Exchanges and the Stock Exchange bear no responsibility for the report's content, while the company's directors assume full responsibility for its accuracy, completeness, and non-misleading nature[2] Financial Performance This section presents the group's financial results, including statements of profit or loss, financial position, changes in equity, and cash flows, highlighting key performance indicators Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the Group's revenue decreased by 4.24%, gross profit fell by 16.00%, and loss before tax expanded by 5.20% to RMB 4,111 thousand Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 8,662 | 9,046 | -4.24% | | Cost of sales | (5,655) | (5,468) | 3.42% | | Gross profit | 3,007 | 3,578 | -16.00% | | Other income, gains and losses | 1,217 | 1,227 | -0.81% | | Selling and distribution expenses | (102) | (150) | -32.00% | | Administrative and other operating expenses | (7,197) | (7,330) | -1.79% | | Finance costs | (1,036) | (1,233) | -15.98% | | Loss before tax | (4,111) | (3,908) | 5.20% | | Income tax expense | – | – | – | | Loss and total comprehensive loss for the period | (4,111) | (3,908) | 5.20% | | Basic and diluted loss per share | (0.013) | (0.013) | 0.00% | Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group reported net current liabilities of RMB 196,532 thousand, net liabilities of RMB 146,032 thousand, and total equity of negative RMB 146,032 thousand, indicating ongoing financial pressure Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Assets | | | | | Non-current assets | 136,317 | 138,663 | -1.76% | | Current assets | 32,469 | 24,211 | 34.11% | | Liabilities | | | | | Current liabilities | 229,001 | 218,430 | 4.84% | | Non-current liabilities | 85,817 | 86,365 | -0.63% | | Net | | | | | Net current liabilities | (196,532) | (194,219) | 1.19% | | Net liabilities | (146,032) | (141,921) | 2.89% | | Total equity | (146,032) | (141,921) | 2.89% | - Trade receivables significantly increased from RMB 5,881 thousand on December 31, 2024, to RMB 14,757 thousand on June 30, 2025, representing a 150.92% growth[6] - Contract liabilities significantly increased from RMB 5,642 thousand on December 31, 2024, to RMB 15,863 thousand on June 30, 2025, representing a 181.16% growth[6] Condensed Consolidated Statement of Changes in Equity For the six months ended June 30, 2025, total equity attributable to owners further decreased by RMB 4,111 thousand due to the total comprehensive loss for the period, expanding accumulated losses to RMB 211,218 thousand Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30) | Indicator | June 30, 2025 (RMB thousands) | January 1, 2024 (RMB thousands) | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Total equity at beginning of period | (141,921) | (108,301) | (33,620) | | Total comprehensive loss for the period | (4,111) | (3,908) | 203 | | Total equity at end of period | (146,032) | (112,209) | (33,823) | - Accumulated losses increased from RMB (207,107) thousand on January 1, 2025, to RMB (211,218) thousand on June 30, 2025[8] Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2025, net cash used in operating activities was RMB (6) thousand, net cash used in investing activities was RMB 1 thousand, net cash generated from financing activities was RMB 5 thousand, with cash and cash equivalents at period-end maintained at RMB 292 thousand Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Net cash used in operating activities | (6) | 240 | (246) | | Net cash used in investing activities | 1 | (47) | 48 | | Net cash generated from financing activities | 5 | (161) | 166 | | Increase in cash and cash equivalents | – | 32 | (32) | | Cash and cash equivalents at end of period | 292 | 309 | (17) | Notes to the Condensed Consolidated Financial Statements This section provides detailed explanations and disclosures for the condensed consolidated financial statements, covering general information, accounting policies, and specific financial items General Information Shanxi Changcheng Microlight Equipment Co, Ltd was incorporated in China on November 10, 2000, with its H shares listed on the HKEX GEM - The company was incorporated in China on November 10, 2000, with its H shares listed on the Hong Kong Stock Exchange GEM[10] Going Concern Basis The Group faces significant going concern uncertainties due to high net current liabilities, net liabilities, and outstanding borrowings, with management implementing measures like debt restructuring and shareholder financial support - As of June 30, 2025, the Group's net current liabilities were approximately RMB 196,532 thousand, net liabilities approximately RMB 146,032 thousand, and outstanding bank and other borrowings approximately RMB 71,424 thousand, indicating significant going concern uncertainties[11] - Management has implemented measures to improve liquidity, including negotiating debt restructuring, interest waivers, and repayment extensions with shareholders, lenders, and banks, while seeking further financial assistance and expanding fiber optic product sales channels[11] Basis of Preparation The condensed consolidated financial statements are prepared in accordance with HKAS 34 and GEM Listing Rules, consistent with 2024 annual report accounting policies - The condensed consolidated financial statements are prepared in accordance with HKAS 34 and the GEM Listing Rules, with accounting policies consistent with the 2024 annual report[12] Adoption of New and Revised Hong Kong Financial Reporting Standards The Group adopted all new and revised HKFRS effective January 1, 2025, without significant changes to accounting policies or financial statement amounts - The Group has adopted all new and revised Hong Kong Financial Reporting Standards effective January 1, 2025, without significant changes to accounting policies or financial statement amounts[13] Revenue and Segment Information The Group's revenue primarily derives from fiber optic product manufacturing and sales, totaling RMB 8,662 thousand for the six months ended June 30, 2025, a 4.24% year-on-year decrease, with microchannel plates and fiber optic inverters as key products and China as the main market, despite a significant decline in European and Russian market revenue Revenue by Product and Geographical Location (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 8,662 | 9,046 | -4.24% | | By Product | | | | | Fiber optic inverters | 3,479 | 4,234 | -17.79% | | Fiber optic straight plates | – | 150 | -100.00% | | Fiber optic faceplates | 69 | 460 | -85.00% | | Fiber optic tapers | 1,231 | 878 | 40.21% | | Microchannel plates | 3,723 | 3,313 | 12.37% | | Others | 160 | 11 | 1354.55% | | By Geographical Location | | | | | China | 7,430 | 7,346 | 1.14% | | Hong Kong and other Asian countries | 612 | 327 | 87.16% | | Europe and Russia | 620 | 1,373 | -54.84% | - The Group considers sales of fiber optic inverters, fiber optic straight plates, fiber optic faceplates, fiber optic tapers, and microchannel plates as a single reportable segment[19] - Revenue from major customer A increased from RMB 5,343 thousand in 2024 to RMB 5,868 thousand in 2025, while revenue from customer B decreased from RMB 1,652 thousand to RMB 996 thousand[24] Other Income, Gains and Losses For the six months ended June 30, 2025, other income, gains, and losses primarily comprised government grants totaling approximately RMB 1,217 thousand, a slight decrease from the prior year - Other income, gains and losses primarily comprised government grants, totaling RMB 1,217 thousand in 2025 and RMB 1,227 thousand in 2024[25] Finance Costs For the six months ended June 30, 2025, the Group's finance costs were RMB 1,036 thousand, a 15.98% decrease from RMB 1,233 thousand in the prior year, mainly due to reduced interest on other borrowings Finance Costs (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Y-o-Y Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Interest on bank borrowings | – | 218 | (218) | | Interest on other borrowings | 673 | 2,120 | (1,447) | | Interest on amounts due to shareholders | 363 | 372 | (9) | | Less: Interest waived | – | (1,477) | 1,477 | | Total | 1,036 | 1,233 | (197) | Income Tax Expense For the six months ended June 30, 2025, the Group incurred no taxable profit, resulting in no income tax expense - The Group generated no taxable profit during the reporting period, thus no income tax expense was recognized[27] Loss Per Share For the six months ended June 30, 2025, basic and diluted loss per share remained at RMB 0.013, consistent with the prior year, due to unchanged issued shares and no potential dilutive ordinary shares Loss Per Share (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Loss attributable to owners of the Company (RMB thousands) | 4,111 | 3,908 | | Number of shares in issue (shares) | 308,860,000 | 308,860,000 | | Basic and diluted loss per share (RMB) | (0.013) | (0.013) | Interim Dividend The Board of Directors does not recommend paying any dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend paying any dividend for the six months ended June 30, 2025[30] Property, Plant and Equipment For the six months ended June 30, 2025, the Group did not purchase any property, plant, or equipment - During the reporting period, the Group made no purchases of property, plant, and equipment[31] Trade Receivables As of June 30, 2025, net trade receivables significantly increased by 150.92% to RMB 14,757 thousand from RMB 5,881 thousand on December 31, 2024, with a notable rise in amounts over 365 days past due Ageing Analysis of Trade Receivables (As of June 30) | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Total trade receivables | 36,122 | 27,247 | 8,875 | | Less: Impairment of trade receivables | (21,365) | (21,366) | 1 | | Net | 14,757 | 5,881 | 8,876 | | By Ageing | | | | | Within 90 days | 3,374 | 5,561 | (2,187) | | 91 to 180 days | 3,903 | 320 | 3,583 | | 181 to 365 days | 224 | – | 224 | | Over 365 days | 7,256 | – | 7,256 | Trade Payables As of June 30, 2025, total trade payables were RMB 8,399 thousand, a slight decrease from RMB 8,832 thousand on December 31, 2024, with amounts over 365 days still constituting the majority Ageing Analysis of Trade Payables (As of June 30) | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | 0 to 90 days | 377 | 245 | 132 | | 91 to 180 days | 158 | 360 | (202) | | 181 to 365 days | 62 | 403 | (341) | | Over 365 days | 7,802 | 7,824 | (22) | | Total | 8,399 | 8,832 | (433) | Share Capital As of June 30, 2025, the company's total issued and fully paid share capital was RMB 30,886 thousand, comprising 198,860,000 domestic shares and 110,000,000 H shares, each with a par value of RMB 0.10 Share Capital Composition (As of June 30) | Share Capital Type | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Domestic shares (198,860,000 shares) | 19,886 | 19,886 | | H shares (110,000,000 shares) | 11,000 | 11,000 | | Total | 30,886 | 30,886 | Capital Commitments As of June 30, 2025, the Group's capital commitments amounted to RMB 49 thousand for contracted contributions to an associate, consistent with the previous fiscal period-end Capital Commitments (As of June 30) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Contracted contributions to an associate | 49 | 49 | Management Discussion and Analysis This section reviews the Group's business operations, financial condition, and going concern matters, along with key financial performance indicators and related party transactions Business Review The Group primarily designs, develops, manufactures, and sells image transmission fiber optic products for military night vision, with H1 2025 revenue declining due to overseas order drops but domestic sales increasing, as the company actively expands markets - The Group's primary business involves the design, research and development, production, and sale of image transmission fiber optic products, mainly applied in military low-light night vision devices[37] - In the first half of 2025, operating revenue decreased year-on-year, primarily due to a significant decline in overseas customer orders caused by international situations[38] - The company is actively developing domestic customers, with domestic sales increasing year-on-year, and will continue to strengthen new domestic customer development and increase market share with existing domestic customers, while striving to restore overseas revenue[38] Financial Position and Going Concern Matters The Group faces severe liquidity and debt issues, with management implementing asset revitalization, new product development, market expansion, debt restructuring, interest waivers, repayment extensions, and shareholder financial support to address significant going concern uncertainties - As of June 30, 2025, the Group's net current liabilities and net liabilities were approximately RMB 196,532 thousand and RMB 146,032 thousand, respectively, indicating significant going concern uncertainties[39] - Financial measures include: revitalizing long-term assets (leasing properties), researching and developing new products and extending down the industrial chain, strengthening sales efforts, and expanding into civilian product sectors[39] - Debt-related measures include: negotiating debt restructuring, interest waivers, and repayment extensions with shareholders, lenders, and banks, and seeking further financial assistance from major shareholders and lenders[39] - Implemented financial measures include major shareholder Taiyuan Changcheng and other lenders agreeing to extend loan principal to December 31, 2026, and defer interest payments[41] Financial Review For the six months ended June 30, 2025, the Group's turnover decreased by 4.24% year-on-year, and gross profit declined by 16.00%, but administrative and other operating expenses and finance costs decreased, resulting in a 5.20% expansion of loss after tax to RMB 4,111 thousand Financial Review Key Indicators (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Y-o-Y Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Turnover | 8,662 | 9,046 | (384) | | Cost of sales | 5,655 | 5,468 | 187 | | Gross profit | 3,007 | 3,578 | (571) | | Other income, gains and losses | 1,217 | 1,227 | (10) | | Administrative and other operating expenses | 7,197 | 7,330 | (133) | | Finance costs | 1,036 | 1,233 | (197) | | Loss after tax | 4,111 | 3,908 | 203 | Related Party Transactions and Financial Assistance from Major Shareholders The Group received financial assistance from major shareholders Taiyuan Changcheng, Beijing Zhongze, and other related parties, with total amounts due to these parties approximately RMB 26,410 thousand as of June 30, 2025, and interest charged by related parties on normal commercial terms or better Amounts Due to Major Shareholders and Related Parties (As of June 30) | Related Party | June 30, 2025 (RMB thousands) | | :--- | :--- | | Taiyuan Changcheng | 24,160 | | Beijing Zhongze | 1,481 | | Other related parties | 769 | | Total | 26,410 | Total Interest Charged by Related Parties (For the six months ended June 30) | Related Party | 2025 (RMB thousands) | | :--- | :--- | | Taiyuan Changcheng | 358 | | Beijing Zhongze | 6 | | Other related parties | 12 | | Total | 376 | Bank and Other Borrowings As of June 30, 2025, the Group had outstanding bank borrowings of RMB 6,000 thousand and other borrowings of approximately RMB 65,424 thousand Bank and Other Borrowings (As of June 30) | Borrowing Type | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Bank borrowings | 6,000 | 6,000 | | Other borrowings | 65,424 | – | | Total | 71,424 | 6,000 | Liquidity and Financial Resources As of June 30, 2025, the Group's total assets increased by 4% to RMB 168,786 thousand, total liabilities increased by 3% to RMB 314,818 thousand, leading to a decrease in total equity by approximately RMB 4,111 thousand to negative RMB 146,032 thousand Liquidity and Financial Resources Overview (As of June 30) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Total assets | 168,786 | 162,874 | 5,912 | | Total liabilities | 314,818 | 304,795 | 10,023 | | Total equity | (146,032) | (141,921) | (4,111) | Gearing Ratio As of June 30, 2025, the Group's gearing ratio increased to approximately 205% from 200% on December 31, 2024, indicating a further rise in debt levels Gearing Ratio (As of June 30) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gearing ratio | 205% | 200% | Material Investments Held As of June 30, 2025, the Group's carrying amount of interests in associates was zero - The Group held no material investments in associates at the end of the reporting period[52] Acquisition and Disposal of Subsidiaries For the six months ended June 30, 2025, the Group neither acquired nor disposed of any subsidiaries - During the reporting period, the Group did not engage in any acquisition or disposal of subsidiaries[53] Pledge of Assets As of June 30, 2025, buildings with a carrying amount of approximately RMB 39,559 thousand and right-of-use assets located in Shanxi, China, were pledged as collateral for bank borrowings - Buildings with a carrying amount of approximately RMB 39,559 thousand were pledged as collateral for bank borrowings[54] - Right-of-use assets located in Shanxi, China, were also pledged as collateral for bank borrowings[54] Contingent Liabilities As of June 30, 2025, the Group had no contingent liabilities - The Group had no contingent liabilities at the end of the reporting period[55] Exchange Rate Fluctuation Risk The Group faces minimal foreign exchange risk as its business transactions, assets, and liabilities are primarily denominated in its functional currency - The Group faces minimal foreign exchange risk as its business transactions, assets, and liabilities are primarily denominated in its functional currency[56] Employee Information As of June 30, 2025, the Group employed approximately 288 full-time staff, with remuneration determined by experience, performance, and contribution - As of June 30, 2025, the Group employed approximately 288 full-time staff[57] Other Information This section covers additional disclosures including directors' and major shareholders' interests, securities transactions, corporate governance, and employee details Directors' and Supervisors' Interests in Shares, Underlying Shares and Debentures of the Company As of June 30, 2025, Director Yuan Guoliang held 3,895,000 H shares, representing approximately 3.54% of H shares and 1.26% of total share capital, with no other directors or supervisors having disclosable interests or short positions Directors' and Supervisors' Long Positions in Shares of the Company (As of June 30) | Name | Nature and Capacity of Interest | Number and Class of H Shares | Approximate Percentage of H Shares Held* | Approximate Percentage of Total Share Capital Held* | | :--- | :--- | :--- | :--- | :--- | | Yuan Guoliang | Personal and family interests | 3,895,000 H shares | 3.54% | 1.26% | Major Shareholders As of June 30, 2025, the company's major shareholders include Zhang Shaohui (via controlled companies), Beijing Zhongze Venture Capital Management Co, Ltd, Taiyuan Changcheng Optoelectronic Co, Ltd, Beijing Yuankang Technology Co, Ltd, Ning Shuwu (via controlled companies), Taiyuan Tanghai Automatic Control Co, Ltd, Liu Jiang (via controlled companies), and Qiu Guiqing (family interests), primarily holding domestic shares Major Shareholders' Shareholdings (As of June 30) | Name/Company Name | Nature and Capacity of Interest | Number and Class of Domestic Shares | Approximate Percentage of Domestic Shares Held* | Approximate Percentage of Total Share Capital Held* | | :--- | :--- | :--- | :--- | :--- | | Zhang Shaohui | Interest in controlled corporation | 82,200,000 domestic shares | 41.34% | 26.61% | | Beijing Zhongze Venture Capital Management Co, Ltd | Registered and beneficial owner and interest in controlled corporation | 82,200,000 domestic shares | 41.34% | 26.61% | | Taiyuan Changcheng Optoelectronic Co, Ltd | Registered and beneficial owner | 80,160,000 domestic shares | 40.31% | 25.95% | | Beijing Yuankang Technology Co, Ltd | Registered and beneficial owner | 34,000,000 domestic shares | 17.10% | 11.01% | | Ning Shuwu | Interest in controlled corporation | 34,000,000 domestic shares | 17.10% | 11.01% | | Taiyuan Tanghai Automatic Control Co, Ltd | Registered and beneficial owner | 24,900,000 domestic shares | 12.52% | 8.06% | | Liu Jiang | Interest in controlled corporation | 24,900,000 domestic shares | 12.52% | 8.06% | | Qiu Guiqing | Family interest | 24,900,000 domestic shares | 12.52% | 8.06% | Purchase, Sale or Redemption of the Company's Listed Securities For the six months ended June 30, 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the reporting period, neither the company nor its subsidiaries engaged in the purchase, sale, or redemption of listed securities[64] Share Option Scheme The Group does not have any share option scheme - The Group has no share option scheme[65] Rights of Directors and Supervisors to Purchase H Shares For the six months ended June 30, 2025, no directors or supervisors were granted or exercised any rights to subscribe for the company's H shares - During the reporting period, no directors or supervisors were granted or exercised any rights to purchase H shares[66] Material Contracts The Board believes that for the six months ended June 30, 2025, neither the company nor its subsidiaries entered into any material contracts in which directors or supervisors had a significant interest - During the reporting period, the Group had no material related party contracts[68] Competing Interests The Board believes that for the six months ended June 30, 2025, no directors, supervisors, management shareholders, or their associates had interests in businesses competing with the Group - During the reporting period, directors, supervisors, and management shareholders had no competing interests[69] Audit Committee The company has established an Audit Committee, comprising two independent non-executive directors and one non-executive director, primarily responsible for reviewing and overseeing financial reporting, risk management, and internal control systems, and has reviewed the current period's results - The Audit Committee comprises Mr Xu Yongfeng (Chairman), Mr Rong Fei (Independent Non-executive Director), and Mr Yuan Guoliang (Non-executive Director)[70] - The Audit Committee has reviewed the Group's unaudited results for the six months ended June 30, 2025[70] Corporate Governance Practices The company has complied with the Corporate Governance Code in Appendix 15 of the GEM Listing Rules, except for not purchasing directors' liability insurance and some non-executive directors' absence from the AGM - The company has complied with the Corporate Governance Code in Appendix 15 of the GEM Listing Rules, with two exceptions: no directors' liability insurance was purchased, and some non-executive directors did not attend the Annual General Meeting[72] Directors' Securities Transactions The company has adopted a standard code for directors' securities transactions no less stringent than the GEM Listing Rules, with no non-compliance found - The company has adopted a standard code for directors' securities transactions, and no non-compliance was identified[73] Board Approval and Contact Information This report was approved by the Board on August 29, 2025, comprising three executive, two non-executive, and three independent non-executive directors, with publication details provided - This report was approved by the Board on August 29, 2025[74][75] - The Board comprises eight directors: Mr Song Zhenglai, Mr Jiao Baoguo, Ms Wang Lingling (Executive Directors); Mr Wu Bo, Mr Yuan Guoliang (Non-executive Directors); Mr Xu Yongfeng, Mr Wang Weizhong, Mr Rong Fei (Independent Non-executive Directors)[75]