泰坦能源技术(02188) - 2025 - 中期业绩

Interim Results Announcement Company Overview and Scope of Report This announcement from China Titan Energy Technology Group Co., Ltd. discloses unaudited interim results for the six months ended June 30, 2025, reviewed by the audit committee - China Titan Energy Technology Group Co., Ltd. released its interim results announcement for the six months ended June 30, 2025[2] - The condensed consolidated interim financial information is unaudited but has been reviewed by the company's audit committee[3] Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Financial Performance For the six months ended June 30, 2025, the Group experienced a year-on-year decrease in turnover, a significant reduction in gross profit, and an expanded loss for the period 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) | Year-on-year Change (RMB thousands) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | :--- | | Turnover | 137,218 | 148,007 | (10,789) | -7.29% | | Cost of sales | (101,486) | (100,731) | (755) | 0.75% | | Gross profit | 35,732 | 47,276 | (11,544) | -24.42% | | Other income and gains | 1,951 | 4,164 | (2,213) | -53.15% | | Selling and distribution expenses | (26,336) | (32,149) | 5,813 | -18.08% | | Administrative and other expenses | (35,187) | (38,743) | 3,556 | -9.18% | | Loss before tax | (29,804) | (31,753) | 1,949 | -6.14% | | Loss for the period | (29,809) | (29,564) | (245) | 0.83% | | Loss for the period attributable to owners of the Company | (29,618) | (29,290) | (328) | 1.12% | | Basic and diluted loss per share | (1.99 cents) | (1.96 cents) | (0.03 cents) | 1.53% | Condensed Consolidated Statement of Financial Position Asset and Liability Structure As of June 30, 2025, the Group's total assets slightly decreased, with non-current assets increasing while current assets and current liabilities both decreased Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Non-current assets | | | | | | Property, plant and equipment | 171,265 | 155,907 | 15,358 | 9.85% | | Interests in associates | 19,455 | 20,392 | (937) | -4.59% | | Total non-current assets | 236,847 | 221,823 | 15,024 | 6.77% | | Current assets | | | | | | Inventories | 162,599 | 143,082 | 19,517 | 13.64% | | Trade receivables | 321,705 | 380,413 | (58,708) | -15.43% | | Restricted bank balances | 21,883 | 56,874 | (34,991) | -61.52% | | Bank balances and cash | 154,588 | 133,861 | 20,727 | 15.48% | | Total current assets | 755,088 | 798,874 | (43,786) | -5.48% | | Current liabilities | | | | | | Trade and bills payables | 130,280 | 155,765 | (25,485) | -16.36% | | Bank and other borrowings (current) | 209,534 | 155,800 | 53,734 | 34.49% | | Total current liabilities | 379,369 | 386,403 | (7,034) | -1.82% | | Net current assets | 375,719 | 412,471 | (36,752) | -8.91% | | Non-current liabilities | | | | | | Bank and other borrowings (non-current) | 60,581 | 53,968 | 6,613 | 12.25% | | Total non-current liabilities | 71,896 | 65,283 | 6,613 | 10.13% | | Net assets | 540,670 | 569,011 | (28,341) | -4.98% | | Total equity | 540,670 | 569,011 | (28,341) | -4.98% | Notes to the Condensed Consolidated Interim Financial Information 1. General Information This section outlines China Titan Energy Technology Group Co., Ltd.'s registration, listing, ultimate controlling party, main business scope, and presentation currency - The Company was incorporated in the Cayman Islands and its shares are listed on the Hong Kong Stock Exchange[8] - The ultimate controlling party is the State-owned Assets Supervision and Administration Commission of Tangshan Municipal People's Government, China[8] - Principal activities include the supply of power electronic products and equipment, sales and leasing of electric vehicles, provision of electric vehicle charging services, and BOT charging pile construction services, with the Company's principal business being investment holding[9] - The condensed consolidated financial statements are presented in Renminbi[10] 2. Basis of Preparation The condensed consolidated financial statements are prepared in accordance with HKAS 34 and applicable disclosure requirements of Appendix D2 to the Listing Rules - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and Appendix D2 to the Listing Rules of the Stock Exchange[11] 3. Principal Accounting Policies The condensed consolidated financial information is prepared on a historical cost basis, with accounting policies consistent with last year's annual financial statements, and new HKFRS amendments have no material impact - The condensed consolidated financial information is prepared on a historical cost basis, except for certain financial instruments measured at fair value[12] - The new and revised Hong Kong Financial Reporting Standards (e.g., HKAS 21 amendments) applied for the first time in the current period have no material impact on financial performance and position[13] 4. Revenue and Segment Information Group revenue primarily derives from sales of electronic products, EV charging services, and other businesses, with total revenue decreasing year-on-year due to reduced power DC system and charging service revenue - Turnover primarily derives from sales of electronic products (power DC systems, energy storage equipment, electric vehicle charging equipment), provision of electric vehicle charging services, and other business income such as electric vehicle sales and leasing[14] Revenue Analysis (For the six months ended June 30) | Principal Product or Service Lines | 2025 (RMB thousands) | 2024 (RMB thousands) | Year-on-year Change (RMB thousands) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | :--- | | Sales of electronic products - Power DC systems | 46,858 | 60,122 | (13,264) | -22.06% | | Sales of electronic products - Charging equipment | 79,053 | 75,914 | 3,139 | 4.13% | | Provision of electric vehicle charging services | 11,130 | 11,892 | (762) | -6.41% | | Other business income such as electric vehicle sales and leasing | 177 | 79 | 98 | 124.05% | | Total Turnover | 137,218 | 148,007 | (10,789) | -7.29% | Segment Results (For the six months ended June 30) | Segment | 2025 Revenue (RMB thousands) | 2025 Results (RMB thousands) | 2024 Revenue (RMB thousands) | 2024 Results (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Power DC systems | 46,858 | 7,356 | 60,122 | 13,893 | | Charging equipment | 79,053 | 26,435 | 75,914 | 24,876 | | Charging services | 11,130 | 849 | 11,892 | 342 | | Unallocated | 177 | 133 | 79 | 25 | | Total | 137,218 | 34,773 | 148,007 | 39,136 | Segment Assets and Liabilities (As of June 30) | Segment | 2025 Assets (RMB thousands) | 2024 Assets (RMB thousands) | 2025 Liabilities (RMB thousands) | 2024 Liabilities (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Power DC systems | 263,699 | 290,023 | 55,209 | 94,993 | | Charging equipment | 444,879 | 435,716 | 93,142 | 100,161 | | Charging services | 53,158 | 51,564 | 13,113 | 27,715 | | Total segments | 761,736 | 777,303 | 161,464 | 222,869 | | Unallocated | 230,199 | 243,394 | 289,801 | 232,063 | | Consolidated total | 991,935 | 1,020,697 | 451,265 | 454,932 | 5. Income Tax (Expense) Credit The Group recorded a deferred tax credit of RMB 5 thousand for the period, with no corporate income tax provision due to no taxable profits in Hong Kong and no taxable profits for its high-tech subsidiary in China Income Tax (Expense) Credit (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Deferred tax | (5) | 2,189 | - Hong Kong profits tax is calculated at 16.5%, but no provision was made as the Group had no income in Hong Kong[22] - Zhuhai Titan Technology Co., Ltd. is certified as a high-tech enterprise, enjoying a preferential corporate income tax rate of 15%, but no provision was made due to no taxable profits[22] 6. Loss for the Period The loss for the period was primarily influenced by impairment losses on financial assets, depreciation and amortization, and research and development expenses Components of Loss for the Period (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net impairment losses on financial assets and contract assets | 49 | 8,668 | | Depreciation of property, plant and equipment | 9,169 | 11,759 | | Depreciation of right-of-use assets | 910 | 910 | | Amortisation of intangible assets | 4,243 | 2,443 | | Total depreciation and amortisation | 14,322 | 15,112 | | Cost of inventories recognised as an expense | 77,941 | 77,368 | | Research and development expenses (included in administrative and other expenses) | 13,328 | 11,265 | 7. Dividends No dividends were paid or proposed by the Company for the six months ended June 30, 2025 - The Company did not pay or propose any dividends during the reporting period[25] 8. Loss Per Share For the six months ended June 30, 2025, both basic and diluted loss per share attributable to owners of the Company increased to RMB 1.99 cents from RMB 1.96 cents last year Loss Per Share (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Loss for the purpose of calculating basic and diluted loss per share (RMB thousands) | (29,618) | (29,290) | | Weighted average number of ordinary shares (thousands of shares) | 1,492,026 | 1,492,026 | | Basic and diluted loss per share | (1.99 cents) | (1.96 cents) | - As the Group incurred a loss, the effect of share options was not included in the diluted loss per share, thus diluted loss per share is the same as basic loss per share[27] 9. Movements in Property, Plant and Equipment During the reporting period, the Group's cost of acquiring property, plant and equipment significantly increased, with a small amount of property, plant and equipment written off - The Group acquired property, plant and equipment at a cost of approximately RMB 24.8 million, an increase from RMB 16.194 million in the same period last year[28] - The Group wrote off approximately RMB 273 thousand of property, plant and equipment[28] 10. Interests in Associates As of June 30, 2025, the Group's interests in associates slightly decreased, maintaining significant influence over Jiangsu Titan Smart Technology Co., Ltd. and Guangdong Titan Intelligent Power Co., Ltd Interests in Associates (As of June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Investment cost in unlisted associates | 17,145 | 17,145 | | Share of post-acquisition results, net of dividends received | 3,007 | 3,944 | | Cumulative impairment losses recognised | (697) | (697) | | Total | 19,455 | 20,392 | - The Group has significant influence over Jiangsu Titan Smart Technology Co., Ltd. and Guangdong Titan Intelligent Power Co., Ltd. due to the right to appoint their board members[29] 11. Trade Receivables As of June 30, 2025, the Group's trade receivables (net of impairment allowance) significantly decreased, with a notable shift in aging towards older receivables Trade Receivables (As of June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade receivables | 388,515 | 483,878 | | Less: Impairment loss allowance | (66,810) | (103,465) | | Net | 321,705 | 380,413 | Aging Analysis of Trade Receivables (As of June 30) | Aging | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | 0 to 90 days | 59,568 | 215,345 | | 91 to 180 days | 54,722 | 38,094 | | 181 to 365 days | 149,353 | 88,850 | | 1 to 2 years | 53,288 | 26,216 | | 2 to 3 years | 4,774 | 11,908 | | Total | 321,705 | 380,413 | - The Group grants an average credit period of 90 days to trade customers, with some payments due after installation and testing, and retention money due at the end of the product warranty period[30] 12. Trade and Bills Payables As of June 30, 2025, the Group's total trade and bills payables decreased, with a shift in aging towards older payables Trade and Bills Payables (As of June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade payables | 75,880 | 106,527 | | Bills payables | 54,400 | 49,238 | | Total | 130,280 | 155,765 | Aging Analysis of Trade and Bills Payables (As of June 30) | Aging | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | 0 to 90 days | 77,655 | 121,242 | | 91 to 180 days | 13,472 | 21,368 | | 181 to 365 days | 31,405 | 4,800 | | 1 to 2 years | 3,288 | 7,953 | | Over 2 years | 4,460 | 402 | | Total | 130,280 | 155,765 | - The average credit period for purchases of goods is 90 days[31] Management Discussion and Analysis Business Review For the six months ended June 30, 2025, the Group's turnover decreased by 7.29% year-on-year, primarily due to intensified competition in power DC products and declining gross profit margin, leading to an increased loss attributable to owners of the Company - The Group's turnover was approximately RMB 137.218 million, a year-on-year decrease of 7.29%[32] - Loss for the period attributable to owners of the Company was approximately RMB 29.618 million, an increase of approximately RMB 328 thousand compared to the loss in the same period last year[33] - The increased loss was primarily due to intensified competition in power DC products, leading to decreased turnover and gross profit margin[33] Power DC Products Sales of power DC products decreased by 22.06% year-on-year to approximately RMB 46.858 million, mainly due to intensified market competition - Sales of power DC products decreased by 22.06% year-on-year to RMB 46.858 million[35] Electric Vehicle Charging Equipment Sales of electric vehicle charging equipment increased by 4.13% year-on-year to approximately RMB 79.053 million, driven by growing investment demand for charging infrastructure in various regions - Sales of electric vehicle charging equipment increased by 4.13% year-on-year to RMB 79.053 million[36] - The growth was primarily due to increased investment demand for charging infrastructure projects in various regions[36] Electric Vehicle Charging Services Sales of electric vehicle charging services decreased by 6.41% year-on-year to approximately RMB 11.130 million, mainly due to reduced charging volume at some public bus charging stations - Sales of electric vehicle charging services decreased by 6.41% year-on-year to RMB 11.130 million[37] - The decrease in revenue was mainly due to reduced charging volume at some public bus charging stations[37] Other Businesses Other business turnover (including EV sales and leasing) increased by 124.05% year-on-year to approximately RMB 177 thousand, though it is not a principal business of the Group - Other business turnover increased by 124.05% year-on-year to RMB 177 thousand[38] - This business is not a principal business of the Group[38] Key Operating Activities in the First Half of 2025 In the first half of 2025, the new energy vehicle industry saw high-quality development and significant growth in charging infrastructure, while the Group's main business revenue declined, leading to a loss despite strict cost control - In the first half of 2025, domestic sales of new energy vehicles reached 5.878 million units, and the increase in charging infrastructure was 3.282 million units, a year-on-year increase of 99.2%[39] - The Group's power DC product turnover decreased by 22.06% year-on-year, mainly due to weak industry demand and intensified competition, which the Group is addressing through direct sales and product iteration[40] - The Group's electric vehicle charging equipment revenue increased by 4.13% year-on-year, with Southern Power Grid related projects progressing efficiently, and the launch of four major product series: Titan Core, Titan Heng, Titan Wing, and Titan Leap[41][42] - Electric vehicle charging service revenue decreased by 6.41% year-on-year, mainly due to the divestment of some self-operated charging stations, with the Group optimizing software and hardware services and expanding its franchise network[45] - The Group continues to increase R&D investment, obtaining 2 invention patents, including a device for detecting ring network impedance and a power peak shaving method based on V2G technology and machine learning[45][46] - The Group is building a comprehensive strategic marketing system, optimizing personnel structure, expanding sales channels and partners, and enhancing customer service quality[47] Turnover For the six months ended June 30, 2025, the Group's turnover was RMB 137.218 million, a 7.29% decrease from the prior year, primarily due to intense competition in the power market Turnover Composition (For the six months ended June 30) | Product Category | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Power DC Products | 46,858 | 60,122 | | Electric Vehicle Charging Equipment | 79,053 | 75,914 | | Electric Vehicle Charging Services | 11,130 | 11,892 | | Other | 177 | 79 | | Total | 137,218 | 148,007 | - Total turnover decreased by 7.29% year-on-year, mainly due to intense competition in the power market[48] Cost of Sales Cost of sales increased from RMB 100.731 million in the prior year to RMB 101.486 million, primarily due to a lower gross profit margin during the reporting period - Cost of sales increased to RMB 101.486 million, a year-on-year increase of 0.75%[49] - The increase in cost of sales was mainly due to a lower gross profit margin[49] Gross Profit and Gross Profit Margin Group gross profit decreased by RMB 11.544 million to RMB 35.732 million, with the overall gross profit margin declining from 31.94% to 26.04% - Gross profit decreased by RMB 11.544 million year-on-year to RMB 35.732 million[50] - The overall gross profit margin decreased from 31.94% to 26.04%[51] Segment Gross Profit Margin (For the six months ended June 30) | Segment | 2025 Gross Profit Margin | 2024 Gross Profit Margin | Change | | :--- | :--- | :--- | :--- | | Power DC Products | 16.48% | 28.89% | -12.41% | | Electric Vehicle Charging Equipment | 34.19% | 38.59% | -4.40% | | Electric Vehicle Charging Services | 7.63% | 4.85% | +2.78% | | Other | 75.10% | 44.37% | +30.73% | Other Income The Group's other income, primarily comprising exchange gains and government subsidies, decreased by approximately 53.15% from RMB 4.164 million to RMB 1.951 million - Other income decreased by approximately RMB 2.213 million to RMB 1.951 million[53] - This primarily includes exchange gains and government subsidies[53] Selling and Distribution Expenses Selling and distribution expenses decreased by 18.08% year-on-year to RMB 26.336 million, mainly due to reduced sales-related personnel costs, despite increases in some other operational expenses - Selling and distribution expenses decreased by approximately RMB 5.813 million or 18.08% to RMB 26.336 million[54] - This was primarily due to a decrease of approximately RMB 12.834 million in sales-related salaries, travel, and entertainment expenses[54] Administrative and Other Expenses Administrative and other expenses decreased by 9.18% year-on-year to RMB 35.187 million, mainly due to reduced management personnel-related salaries, R&D, and depreciation expenses - Administrative expenses decreased by approximately RMB 3.556 million or 9.18% to RMB 35.187 million[55] - This was primarily due to a decrease of approximately RMB 3.472 million in salaries, research and development, and depreciation expenses related to management personnel[55] Share of Results of Associates During the reporting period, the Group's share of results of associates was a loss, despite profits from Beijing Pangda Yilian and Qingdao Titan, due to losses from Guangdong Titan and Jiangsu Titan - Share of profit from Beijing Pangda Yilian was approximately RMB 317 thousand[56] - Share of profit from Qingdao Titan was approximately RMB 2 thousand[56] - Share of loss from Guangdong Titan was approximately RMB 183 thousand[56] - Share of loss from Jiangsu Titan was approximately RMB 1.073 million[57] Finance Costs Group finance costs increased by 11.06% year-on-year to RMB 4.912 million, rising from 2.99% to 3.58% of turnover, primarily due to increased average borrowing interest expenses - Finance costs increased by approximately 11.06% to RMB 4.912 million[58] - Finance costs as a percentage of turnover increased from 2.99% to 3.58%[58] - This was primarily due to an increase in average borrowing interest expenses[58] Loss Attributable to Non-controlling Interests Loss attributable to non-controlling interests was approximately RMB 191 thousand, a decrease in loss of approximately RMB 83 thousand compared to the prior year - Loss attributable to non-controlling interests was approximately RMB 191 thousand, a decrease in loss of approximately RMB 83 thousand compared to the same period last year[59] Loss Attributable to Owners of the Company Loss attributable to owners of the Company was approximately RMB 29.618 million, an increase in loss of approximately RMB 328 thousand compared to the prior year - Loss attributable to owners of the Company was approximately RMB 29.618 million, a year-on-year increase in loss of approximately RMB 328 thousand[60] Loss Per Share For the six months ended June 30, 2025, both basic and diluted loss per share were RMB 1.99 cents, an increase from RMB 1.96 cents in the prior year - Basic and diluted loss per share were both RMB 1.99 cents, compared to RMB 1.96 cents in the same period last year[61] Employees and Remuneration As of June 30, 2025, the Group's total number of employees decreased to 416, with total employee remuneration slightly lower year-on-year, while adhering to various employee benefit plans and regulations - As of June 30, 2025, the Group employed a total of 416 employees, a decrease from 453 in the same period last year[62] - Total employee remuneration was approximately RMB 29.534 million, a decrease from RMB 30.505 million in the same period last year[62] - The Group participates in pension benefit schemes and medical insurance, complying with China's social insurance regulations[62] - The Company adopted a share option scheme on December 18, 2020, aimed at rewarding contributions and attracting and retaining talent[63] Liquidity, Financial Resources and Capital Structure The Group's capital structure remained unchanged, funding operations through internal resources and borrowings, with increased bank balances and cash but significantly reduced restricted bank balances, leading to decreased net current assets and liquidity ratio - The Group's capital structure remained unchanged, with capital comprising only ordinary shares[64] - Bank balances and cash were approximately RMB 154.588 million, an increase from RMB 133.861 million as of December 31, 2024[64] - Restricted bank balances were approximately RMB 21.883 million, a significant decrease from RMB 56.874 million as of December 31, 2024[64] - Net current assets were approximately RMB 375.719 million, a decrease from RMB 412.471 million as of December 31, 2024[64] Use of Net Proceeds from Subscription The Group completed a subscription on May 11, 2023, raising approximately HK$188.29 million, with most proceeds used for expanding EV charging equipment business and general working capital, while investment in EV charging services is ongoing - The subscription was completed on May 11, 2023, with net proceeds of approximately HK$188.29 million[66] Use of Net Proceeds from Subscription (As of June 30, 2025) | Purpose | Percentage of Total Amount | Net Proceeds (HK$ million) | Amount Utilized as of December 31, 2024 (HK$ million) | Amount Utilized as of June 30, 2025 (HK$ million) | Unutilized Amount as of June 30, 2025 (HK$ million) | Expected Time of Full Utilization | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Investment to expand electric vehicle charging services business | 50% | 94.14 | 42.44 | 53.00 | 41.14 | Before end of 2025 | | Investment to expand electric vehicle charging equipment business | 40% | 75.32 | 75.32 | 75.32 | – | – | | General working capital of the Group | 10% | 18.83 | 18.83 | 18.83 | – | – | | Total | 100% | 188.29 | 136.59 | 147.15 | 41.14 | | Bank and Other Borrowings As of June 30, 2025, the Group's total bank and other borrowings increased to RMB 270.115 million, with a decrease in secured loans, a lower current ratio, and a higher gearing ratio - Total bank and other borrowings were RMB 270.115 million, an increase of RMB 60.347 million from RMB 209.768 million as of December 31, 2024[67] - Secured loans were RMB 104.873 million, a decrease from RMB 209.768 million as of December 31, 2024[67] - The current ratio was 1.99, a decrease from 2.07 as of December 31, 2024[67] - The gearing ratio was 27.23%, an increase from 20.55% as of December 31, 2024[67] Material Investments For the six months ended June 30, 2025, the Group held no material investments other than those disclosed - During the reporting period, the Group held no material investments[68] Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures For the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures - During the reporting period, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures[69] Trade and Bills Receivables As of June 30, 2025, the Group's trade and bills receivables (net of allowance) decreased to RMB 321.705 million, with additional impairment allowance made, and a longer turnover period influenced by accounting policies and project delays - Trade and bills receivables (net of allowance) were approximately RMB 321.705 million, a decrease from RMB 380.413 million as of December 31, 2024[70] - The Group made an additional impairment loss allowance of RMB 2.28 million for trade and bills receivables[70] Aging Analysis of Trade Receivables (Net of Impairment Loss Allowance) | Aging | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 90 days | 59,568 | 215,345 | | 91 to 180 days | 56,722 | 38,094 | | 181 to 365 days | 149,353 | 88,850 | | 1 to 2 years | 53,288 | 26,216 | | 2 to 3 years | 4,774 | 11,908 | | Total | 321,705 | 380,413 | - The longer turnover days and higher overdue ratio for trade receivables are mainly due to timing differences in accounting policies, payments made after customer project completion, and project schedule delays[72] Pledged Assets As of June 30, 2025, leasehold land and buildings with a carrying value of approximately RMB 103.419 million were pledged to secure bank borrowings and other financing - Leasehold land and buildings with a carrying value of approximately RMB 103.419 million were pledged to secure bank borrowings and other financing[74] Capital Commitments and Contingent Liabilities As of June 30, 2025, the Group had contracted but unprovided capital expenditures of approximately RMB 5.25 million and no material contingent liabilities - The Group had contracted but unprovided capital expenditures of approximately RMB 5.25 million[75] - The Group had no material contingent liabilities[76] Foreign Exchange The Group primarily operates in China with transactions denominated and settled in RMB, thus RMB fluctuations may impact share value, and no foreign exchange hedging arrangements were in place during the period - The Group primarily operates in China, with transactions denominated and settled in Renminbi[77] - Exchange gains of approximately RMB 3 thousand were recorded during the reporting period[77] - The Group had no hedging arrangements for foreign exchange[77] Credit Risk The Group mitigates credit risk through continuous credit assessment and monitoring of customer project progress, maintaining close communication to expedite trade receivables collection - The Group strives to mitigate credit risk through continuous credit assessment of customers' financial conditions[78] - The Group monitors customer project progress and communicates with customers to expedite the collection of trade receivables[78] Future Business Prospects and Plans Industry Outlook and National Policies In 2025, the new energy vehicle industry is expected to continue its development with accelerating charging infrastructure upgrades, supported by national policies promoting electrification and new power systems - In 2025, new energy vehicles remain a key area for national efforts to boost domestic demand and industrial upgrading[79] - Five departments, including the Ministry of Industry and Information Technology, will launch the 2025 New Energy Vehicle to the Countryside campaign[80] - The National Development and Reform Commission and other agencies issued a notice aiming for over 100,000 high-power charging facilities nationwide by the end of 2027[80] - Charging infrastructure serves as a crucial bridge between new energy vehicles and new power systems, undertaking functions of energy management and information interaction[80] 1. Optimize Production and Sales Systems, Actively Expand Market Presence The Group plans to enhance manufacturing capabilities, accelerate digital and intelligent production transformation, optimize sales incentive mechanisms, and expand market penetration through diversified marketing and sales models - The Group will enhance the design and process levels of its manufacturing plants in Zhuhai, Guangdong, and Tangshan, Hebei, accelerating digital and intelligent production transformation[81] - Sales will optimize incentive mechanisms to enhance market penetration through digital marketing, scenario-based experiences, joint promotions, and stratified customer operations[82] - Implement a "direct sales + agent" dual-track model, with direct sales focusing on key industries and core regions, and agents covering sinking markets and standardized demand scenarios[82] - Consolidate leading positions in high-power fast charging and intelligent flexible charging, offering customized solutions for public charging stations, destination charging, highway energy replenishment, and heavy-duty truck charging and swapping scenarios[82] - Increase investment in the heavy-duty truck charging and swapping sector, strategically deploy intelligent heavy-duty truck charging and swapping stations, and plan to develop industrial and commercial energy storage projects based on BMS and EMS energy management technologies[83] 2. Strengthen Charging Station Operations Management, Assist Operators in Upgrading The Group will innovate a full ecological closed-loop model of "investment + construction + operation," leveraging its experience, high-performance equipment, and core technologies to provide upgrade services for existing charging stations and build integrated smart energy demonstration projects - The Group will innovate and build a full ecological closed-loop model of "investment + construction + operation," supported by its independently developed high-performance charging equipment and core technologies such as V2G and intelligent scheduling[84] - Focus on providing full lifecycle services including equipment updates, system upgrades, and energy efficiency management for existing charging stations in urban transportation hubs, commercial complexes, and other public places[84] - Create integrated "PV-storage-charging-swapping-inspection" smart energy demonstration projects, building a multi-energy complementary integrated energy service system[84] 3. Emphasize R&D, Enhance Core Product Competitiveness The Group will deeply implement an innovation-driven development strategy, continuously making breakthroughs in smart power, monitoring product systems, liquid-cooled and air-cooled supercharging, and promoting the upgrade of standard products and the implementation of new-generation industrial and commercial energy storage systems - The Group will continue to make breakthroughs in smart power, monitoring product systems, liquid-cooled supercharging, and air-cooled supercharging products[85] - Promote the upgrade of all standard products and the implementation of new-generation industrial and commercial energy storage systems[85] - Strengthen monitoring product platforms, software platforms, and system integration capabilities to achieve coordinated control of charging, energy storage, and photovoltaics[85] 4. Optimize Internal Management, Enhance Comprehensive Responsiveness The Group will optimize its supply chain, upgrade information systems, streamline personnel structure, cultivate versatile talents, and improve assessment mechanisms to build an efficient team - Optimize the supply chain system, upgrade information systems, improve efficiency, and reduce operating costs[85] - Promote streamlined and optimized personnel structure, cultivate versatile talents, and advance the rejuvenation of cadres[85] - Improve assessment mechanisms, deepen the integration of KPIs and OKRs, introduce AI office tools, and enhance employee quality and work efficiency[85] Other Information Interim Dividend The Board did not declare an interim dividend for the six months ended June 30, 2025 - The Board did not declare an interim dividend[86] Compliance with Corporate Governance Code The Company complied with all applicable code provisions of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules during the reporting period - The Company has complied with all applicable code provisions of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules[87] Compliance with Standard Code for Securities Transactions by Directors All Directors confirmed compliance with the required standards of the Standard Code for Securities Transactions by Directors as set out in Appendix C3 to the Listing Rules during the reporting period - All Directors confirmed compliance with the required standards of the Standard Code for Securities Transactions by Directors as set out in Appendix C3 to the Listing Rules during the reporting period[88] Purchase, Sale or Redemption of Listed Securities Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any 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 during the reporting period[89] Material Litigation and Arbitration Proceedings The Group had no material litigation or arbitration proceedings during the reporting period - The Group had no material litigation or arbitration during the reporting period[90] Review by Audit Committee The Company's Audit Committee reviewed and discussed the Group's accounting principles, risk management, internal control systems, and financial reporting matters, including these interim results - The Audit Committee reviewed and discussed the Group's accounting principles, risk management, internal control systems, and financial reporting matters, including these interim results[91] Events After Reporting Period No material events occurred after the reporting period other than those disclosed in this announcement - No material events occurred after the reporting period other than those disclosed in this announcement[92] Publication of Interim Results Announcement and Interim Report This results announcement has been published on the Stock Exchange and Company websites, with the interim report to be provided to shareholders and published on the same websites in due course - This results announcement has been published on the Stock Exchange website and the Company's website[93] - The interim report will be provided to shareholders and published on the aforementioned websites in due course[93]