德基科技控股(01301) - 2025 - 中期业绩

Financial Statements Interim Condensed Consolidated Statement of Profit or Loss Revenue grew significantly by 51.7% to 215,096 thousand RMB, and loss attributable to owners narrowed by 25.8% to 4,221 thousand RMB Interim Condensed Consolidated Statement of Profit or Loss | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 215,096 | 141,811 | 51.7% | | Cost of Sales | (141,736) | (92,443) | 53.3% | | Gross Profit | 73,360 | 49,368 | 48.6% | | Operating Loss | (8,224) | (11,995) | -31.5% | | Loss for the Period Attributable to Owners of the Company | (4,221) | (5,683) | -25.8% | Interim Condensed Consolidated Statement of Comprehensive Income Basic and diluted loss per share attributable to owners narrowed to 0.66 RMB cents, with total comprehensive loss for the period slightly improving to 6,663 thousand RMB Interim Condensed Consolidated Statement of Comprehensive Income | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Loss per share attributable to owners of the Company for the period (RMB cents) | (0.66) | (0.89) | | Loss for the period | (4,221) | (5,683) | | Exchange differences on translation | (2,442) | (1,060) | | Total comprehensive loss attributable to owners of the Company for the period | (6,663) | (6,743) | Interim Condensed Consolidated Statement of Financial Position Total assets increased to 770,889 thousand RMB, primarily driven by current assets, while total liabilities rose and total equity slightly decreased Interim Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 770,889 | 737,678 | 4.5% | | Total Non-current Assets | 173,752 | 176,731 | -1.7% | | Total Current Assets | 597,137 | 560,947 | 6.4% | | Total Equity | 555,654 | 565,279 | -1.7% | | Total Liabilities | 215,235 | 172,399 | 24.8% | | Total Non-current Liabilities | 4,698 | 4,838 | -2.9% | | Total Current Liabilities | 210,537 | 167,561 | 25.6% | Notes to the Financial Information General Information The company specializes in the production, distribution, R&D, and sale of asphalt mixing plants and related equipment, listed on the HKEX Main Board since May 2015 - The company's core business involves the production, distribution, R&D, and sale of asphalt mixing plants and related equipment[7] - The company was listed on the Main Board of The Stock Exchange of Hong Kong Limited on May 27, 2015[8] Basis of Preparation The interim condensed consolidated financial information is prepared under HKAS 34 'Interim Financial Reporting' and should be read with the 2024 annual financial statements - The interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[10] Accounting Policies Accounting policies align with 2024 annual financial statements, adopting new standards effective January 1, 2025, with no significant financial impact, and assessing unadopted standards - Adopted accounting policies are consistent with the 2024 annual financial statements, incorporating new and revised standards effective January 1, 2025, including HKAS 21 and HKFRS 1 (Amendments) "Lack of Exchangeability", which had no significant financial impact[11][12] - Several new and revised standards not yet adopted are listed, including HKFRS 9, HKFRS 7, HKFRS 1, HKFRS 10, and HKAS 28, with effective dates mostly in 2026 or 2027, and their potential impact is still under assessment[13][14] Estimates Significant judgments and estimation uncertainties for interim financial information are consistent with 2024 annual statements, with actual results potentially differing from estimates - Significant judgments and sources of estimation uncertainty in preparing the interim financial information are consistent with those applied in the 2024 annual consolidated financial statements[15] Segment Information The Group operates a single segment, selling asphalt mixing plants and related equipment, with significant revenue growth in Mainland China and a decline overseas - The Group operates a single primary business segment: sales of asphalt mixing plants, spare parts, refurbished equipment, and other asphalt specialized equipment[16] Revenue by Product Type | Revenue Source | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Sales of asphalt mixing plants | 170,213 | 112,578 | | Sales of spare parts and refurbished equipment | 32,624 | 21,906 | | Sales of other asphalt specialized equipment | 12,259 | 7,327 | | Total Revenue | 215,096 | 141,811 | Revenue by Geographical Market | Revenue from External Customers (by Country) | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Mainland China | 198,656 | 97,388 | | Outside Mainland China | 16,440 | 44,423 | | Total Revenue | 215,096 | 141,811 | Other Income and Other Gains/(Losses) – Net Other income and other gains – net significantly increased, driven by stable government grants and a reversal from exchange losses to gains Other Income and Other Gains/(Losses) – Net | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | Change (thousand RMB) | | :--- | :--- | :--- | :--- | | Government grants | 1,124 | 1,034 | 90 | | Net exchange gains/(losses) | 437 | (1,187) | 1,624 | | Total | 1,952 | 422 | 1,530 | Operating Loss Operating loss narrowed, influenced by increased inventory costs and employee benefits, but offset by a significant reduction in trade receivables impairment Operating Loss Components | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Cost of inventories | 132,049 | 87,607 | | Employee benefit expenses | 38,502 | 33,511 | | Net impairment loss provision/(reversal) on trade receivables | 33 | (3,350) | | Net impairment loss provision/(reversal) on inventories | 5,515 | (3,199) | Income Tax Expense Mainland China operations are subject to a 25% statutory tax rate, with Langfang Deji enjoying a 15% preferential rate as a 'High-Tech Enterprise', and no tax provision due to no taxable profit - Langfang Deji Machinery Technology Co., Ltd., as a "High and New Technology Enterprise", enjoys a preferential income tax rate of 15%[27] - Eligible R&D expenditures are deductible with an additional 100% tax deduction[27] Loss Per Share Basic loss per share narrowed to 0.66 RMB cents, driven by reduced loss attributable to owners, with diluted loss per share being identical due to no dilutive shares Loss Per Share Calculation | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Loss attributable to owners of the Company (thousand RMB) | (4,221) | (5,683) | | Weighted average number of ordinary shares issued | 638,516,000 | 639,408,000 | | Basic loss per share (RMB cents per share) | (0.66) | (0.89) | Trade and Bills Receivables Total trade and bills receivables increased to 212,888 thousand RMB, driven by third-party receivables, with credit terms up to 18 months and impairment provisions based on risk Trade and Bills Receivables | Metric | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Total trade and bills receivables | 212,888 | 169,189 | | Trade receivables within 1 year | 207,566 | 147,779 | | Trade receivables over 3 years | 60,461 | 60,666 | - Customers are generally granted credit terms of up to 18 months[30] Trade and Other Payables and Contract Liabilities Total trade and other payables increased to 160,343 thousand RMB, with contract liabilities at 49,696 thousand RMB, and bills payable secured by pledged assets Trade and Other Payables and Contract Liabilities | Metric | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Trade payables | 60,568 | 26,307 | | Bills payable | 56,705 | 64,091 | | Contract liabilities | 49,696 | 41,320 | | Total trade and other payables | 160,343 | 125,302 | - Bills payable are secured by pledged bank deposits of approximately 20,080 thousand RMB, buildings of 23,619 thousand RMB, and land use rights of 4,116 thousand RMB[31] Share Capital, Share Premium and Other Reserves Share capital remained unchanged, with some shares repurchased and cancelled; reserves include distributable share premium, capital reserve from shareholder contributions, and statutory reserves - For the six months ended June 30, 2025, the company repurchased a total of 5,184,000 of its own shares at a total cost of approximately 2,962 thousand RMB[33] - The company cancelled a total of 12,424,000 repurchased shares with a total cost of approximately 7,795 thousand RMB during the period[33] - The statutory general reserve can be used to compensate for losses from previous years and can be converted into capital in proportion to investors' existing equity[37] Dividends No interim dividends were paid, declared, or proposed by the board for the six months ended June 30, 2025 - For the six months ended June 30, 2025, no interim dividends were paid, declared, or proposed[39] Management Discussion and Analysis Overview The Group, a leading road construction machinery provider, achieved strong revenue and gross profit growth in H1 2025, driven by infrastructure investment and effective cost and inventory management - The Group is a leading market participant in the road construction and maintenance machinery industry in Mainland China and overseas markets[40] - Core products include asphalt mixing plants, encompassing conventional and recycling equipment, along with refurbishment services and advanced technologies like RAP crushing equipment and sand-making machines[40][41] Key Financial Performance | Metric | H1 2025 (thousand RMB) | H1 2024 (thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 215,096 | 141,811 | 51.7% | | Gross Profit | 73,360 | 49,368 | 48.6% | Business Development The Group diversifies revenue by expanding asphalt-related businesses, investing in combustion technology and R&D, holding 262 registered patents and 31 software copyrights in China - Committed to developing asphalt-related businesses along the supply chain, seeking strategic partners for cooperative production and sales of asphalt mixtures[45] - Continuously conducting combustion technology research, developing burner combustion equipment, and providing technical support services, with 59 registered combustion technology patents and 4 pending registrations[46] - As of June 30, 2025, the Group holds 262 registered patents (including 16 invention patents and 8 design patents) and 31 software copyrights in China, with 29 patent applications pending approval[47] Marketing and Awards The Group enhanced brand image through industry events and online platforms, earning multiple industry and environmental awards for its specialized manufacturing and sustainability efforts - Participated in various promotional activities, technical seminars, and corporate social responsibility events, including the Chengdu Southwest Asphalt Recycling Mixing Equipment Technology Exchange Conference and the CTT Expo in Moscow[48] - In May 2025, ranked 45th among the Top 50 Specialized Manufacturers in China's Construction Machinery Industry[48] - In July and August 2025, received the "Sustainable Development Institution Excellence Award" at the UN Sustainable Development Goals Hong Kong Achievement Awards 2025, and "Environmental Excellence Enterprise" and "10 Years+ Environmental Pioneer" honors at the BOC Hong Kong Corporate Environmental Leadership Awards[48] Prospects The Group is optimistic about H2 2025 China road construction market, targeting global expansion in Asia and product diversification through strategic partnerships, led by new Board Chairman Ms. Cai Qunli - National infrastructure spending is projected to exceed 3 trillion RMB in 2025, with transportation development remaining a top priority[49] - Committed to global expansion, focusing on profitable Asian markets, particularly emerging markets like the Philippines and Indonesia[49] - Strengthening strategic cooperation with a Canadian company specializing in road construction vehicles to expand product offerings[49] - CEO Ms. Cai Qunli was appointed as the Board Chairman, effective June 23, 2025, and will lead the company towards long-term stable and sustainable growth in domestic and international markets[50] Financial Review This section reviews H1 2025 financial performance, showing total revenue growth of 51.7% and gross profit growth of 48.6%, with net loss attributable to owners narrowing to 4,221 thousand RMB Key Financial Metrics | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 215,096 | 141,811 | 51.7% | | Gross Profit | 73,360 | 49,368 | 48.6% | | Gross Profit Margin | 34.1% | 34.8% | -0.7 percentage points | | Net Loss Attributable to Owners of the Company | (4,221) | (5,683) | -25.8% | Sales of Asphalt Mixing Plants Asphalt mixing plant sales revenue grew 51.2% to 170,213 thousand RMB, driven by increased contracts and improved gross margin, with strong growth in conventional equipment and China market sales Sales of Asphalt Mixing Plants Performance | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Sales Revenue of Asphalt Mixing Plants | 170,213 | 112,578 | 51.2% | | Gross Profit | 61,108 | 34,773 | 75.7% | | Gross Profit Margin | 35.9% | 30.9% | 5.0 percentage points | | Number of Contracts | 23 | 10 | 13 | | Average Contract Value | 7,401 | 11,258 | -34.3% | Sales of Asphalt Mixing Plants by Equipment Type | Equipment Type | 2025 (thousand RMB) | 2024 (thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Recycling Equipment Revenue | 28,276 | 75,139 | -62.4% | | Recycling Equipment Gross Profit Margin | 35.4% | 31.6% | 3.8 percentage points | | Conventional Equipment Revenue | 141,937 | 37,439 | 279.1% | | Conventional Equipment Gross Profit Margin | 36.0% | 29.4% | 6.6 percentage points | Sales of Asphalt Mixing Plants by Region | Region | 2025 (thousand RMB) | 2024 (thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | China Sales Revenue | 160,269 | 73,800 | 117.2% | | China Sales Gross Profit Margin | 35.4% | 29.5% | 5.9 percentage points | | Overseas Sales Revenue | 9,944 | 38,778 | -74.4% | | Overseas Sales Gross Profit Margin | 43.8% | 33.5% | 10.3 percentage points | Sales of Spare Parts and Components and Refurbished Equipment Sales of spare parts, components, and refurbished equipment grew 48.9% to 32,624 thousand RMB, driven by increased demand for conventional equipment refurbishment, with gross margin slightly improving to 46.6% Sales of Spare Parts and Components and Refurbished Equipment Performance | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 32,624 | 21,906 | 48.9% | | Gross Profit | 15,194 | 9,989 | 52.1% | | Gross Profit Margin | 46.6% | 45.6% | 1.0 percentage points | Sales of Other Asphalt Specialized Equipment Other asphalt specialized equipment sales revenue grew 67.3% to 12,259 thousand RMB, with gross margin improving to 21.0%, driven by strategic partnerships and new product promotion Sales of Other Asphalt Specialized Equipment Performance | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 12,259 | 7,327 | 67.3% | | Gross Profit | 2,573 | 1,407 | 82.9% | | Gross Profit Margin | 21.0% | 19.2% | 1.8 percentage points | | Number of Contracts | 6 | 3 | 3 | - The Group has been the exclusive supplier of LiuGong Asphalt Equipment (LAP) series asphalt mixing plants since May 2021[61] - Actively promoting RAP crushing equipment and sand-making machines as new revenue sources and value-added services in both local and overseas asphalt mixing plant markets[62] Other Income and Other Gains/(Losses) – Net Other income and other gains – net increased primarily due to a significant rise in net exchange gains, reversing prior year's losses - The increase in other income and other gains – net was primarily due to an increase in net exchange gains of 1.6 million RMB (2024: exchange losses of 1.2 million RMB)[63] Distribution Costs Distribution costs increased by 52%, aligning with revenue growth, driven by higher logistics, sales staff, commissions, marketing, and warranty expenses - Distribution costs increased by 52%, consistent with revenue growth, primarily driven by higher logistics expenses, sales and marketing staff costs, distributor commissions, marketing costs, and warranty costs[64] Administrative Expenses Administrative expenses rose 3.3%, mainly due to increased R&D and employee costs, partially offset by reduced legal and professional fees - Administrative expenses increased by 3.3%, primarily due to higher R&D costs and employee costs[65] Impairment Loss on Trade Receivables (Provision)/Reversal – Net Net impairment loss provision for trade receivables was 33 thousand RMB, a significant reduction from prior year's reversal, due to recognizing expected credit losses on overdue receivables Impairment Loss on Trade Receivables | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Net impairment loss provision/(reversal) on trade receivables | 33 | (3,350) | Share of Net Profit of an Associate Share of net profit of an associate was 1,077 thousand RMB, mainly from Topu Financial Leasing (Shanghai) Co., Ltd., showing slight growth - Share of net profit of an associate was 1,077 thousand RMB, primarily from the profit of Topu Financial Leasing (Shanghai) Co., Ltd[67] Net Finance Income Net finance income decreased, primarily due to lower interest income from bank deposits - Net finance income decreased primarily due to lower interest income from bank deposits[68] Income Tax Expense Income tax expense for the period was primarily due to deferred tax expense from warranty provisions - Income tax expense was primarily due to deferred tax expense arising from warranty provisions[69] Loss Attributable to Owners of the Company Loss attributable to owners narrowed to 4,221 thousand RMB, primarily due to increased revenue and gross profit Loss Attributable to Owners of the Company | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Loss attributable to owners of the Company | (4,221) | (5,683) | Working Capital Management Net current assets slightly decreased, current ratio fell to 2.8 times, with increased inventory and receivables, and slightly increased payables Working Capital Metrics | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Net Current Assets | 386,605 thousand RMB | 393,386 thousand RMB | -1.7% | | Current Ratio | 2.8 times | 3.3 times | -0.5 times | | Inventories | 219,295 thousand RMB | 212,960 thousand RMB | +3.0% | | Inventory Turnover Days | 276 days | 314 days | -38 days | | Trade and Bills Receivables | 212,888 thousand RMB | 169,189 thousand RMB | +25.8% | | Trade and Bills Receivables Turnover Days | 164 days | 131 days | +33 days | | Trade and Bills Payables | 117,273 thousand RMB | 90,398 thousand RMB | +29.7% | | Trade and Bills Payables Turnover Days | 133 days | 126 days | +7 days | Liquidity and Financial Resources The Group funds operations via internal cash and bank credit, with increased cash and pledged deposits, no borrowings, and operating cash flow turning positive - The Group generally funds its operations through internally generated cash flows and credit facilities granted by its principal bankers[74] Liquidity Position | Metric | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Cash and cash equivalents | 55,882 | 48,926 | | Pledged bank deposits | 24,986 | 21,672 | | Borrowings | Nil | Nil | - Net cash generated from operating activities was 19,485 thousand RMB (2024: cash used in operating activities of 29,834 thousand RMB)[75] Capital Commitments Contracted capital commitments for property, plant, and equipment were 663 thousand RMB, with guarantees for customer finance leases through Shanghai Topu up to 94,333 thousand RMB Capital Commitments | Metric | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Contracted – Property, plant and equipment | 663 | 648 | - The Group provides guarantees to Shanghai Topu for finance leases provided to customers for the purchase of the Group's equipment, with a maximum guarantee amount of 94,333 thousand RMB[77] Pledge of Assets Property, plant, and equipment, land use rights, and bank deposits were pledged to secure bills payable and bank financing as of June 30, 2025 - Property, plant and equipment (23,619 thousand RMB), land use rights (4,116 thousand RMB), and bank deposits (24,986 thousand RMB) are pledged to secure the Group's bills payable and bank financing[78] Foreign Exchange Risk The Group faces foreign exchange risk from USD and EUR denominated transactions, with management monitoring but no hedging instruments used during the period - The Group is exposed to foreign exchange risk arising from sales and purchases denominated in foreign currencies, including USD and EUR[79] - For the six months ended June 30, 2025, the Group did not use any financial instruments for hedging purposes[79] Material Investments and Material Acquisitions or Disposals The Group had no material investments, acquisitions, or disposals for the six months ended June 30, 2025 - For the six months ended June 30, 2025, the Group had no material investments or material acquisitions or disposals[80] Employees and Remuneration Policy As of June 30, 2025, the Group had 352 employees with total staff costs of 38,502 thousand RMB, and remuneration is performance-based, with no share options granted Employee Information | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of Employees | 352 | 330 | | Total Staff Costs | 38,502 thousand RMB | 33,511 thousand RMB | - Remuneration policy is formulated based on employee performance, market conditions, business needs, and expansion plans, including salaries, discretionary bonuses, and provident fund scheme contributions[81] - No share options were granted for the six months ended June 30, 2025 and 2024[81] Interim Dividends The board did not recommend any interim dividends for the six months ended June 30, 2025 - For the six months ended June 30, 2025, the board of directors did not recommend the payment of any interim dividends[82] Purchase, Sale or Redemption of the Company’s Listed Securities The company repurchased 5,184,000 shares and cancelled 12,424,000 shares, with no sales of listed securities during the six months ended June 30, 2025 - The company repurchased a total of 5,184,000 of its own shares at a total cost of approximately 2,962 thousand RMB[83] - The company cancelled 12,424,000 shares with a total value of approximately 7,795 thousand RMB[83] Corporate Governance The Group maintains high corporate governance, complying with Listing Rules, with the review committee confirming interim results and directors' compliance, and Ms. Cai Qunli appointed as Chairman - The company complies with all code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules, except for the roles of Chairman and Chief Executive Officer being combined by Ms. Cai Qunli, for which the Board has taken measures to maintain effective checks and balances[84] - All directors have confirmed compliance with the Model Code for Securities Transactions set out in Appendix C3 of the Listing Rules for the entire period of the six months ended June 30, 2025[85] - The interim results have been reviewed by the Audit Committee and by PricewaterhouseCoopers in accordance with Hong Kong Standard on Review Engagements 2410[86][87] - Mr. Cai Hongneng resigned as Chairman and Executive Director of the company, and Ms. Cai Qunli was appointed as Chairman, effective June 23, 2025[88] Publication of Interim Results Announcement and Interim Report The interim results announcement is published on HKEX and company websites, with the interim report to be dispatched to shareholders in due course - The interim results announcement has been published on the website of Hong Kong Exchanges and Clearing Limited (www.hkexnews.hk) and the company's website (www.dgtechnology.com)[90](index=90&type=chunk) Board of Directors As of the announcement date, the Board comprises four executive, two non-executive, and three independent non-executive directors, with Ms. Cai Qunli as Chairman - As of the announcement date, the company's executive directors are Ms. Cai Qunli, Mr. Cai Hanting, Mr. Liu Jingzhi, and Mr. Liu Jinzhi[92] - The non-executive directors are Mr. Chen Linghong and Mr. Alain Vincent Fontaine; the independent non-executive directors are Mr. Au Yeung Wai Lap, Mr. Li Wai Yat, and Mr. Fok Wai Shun[92]