爱德新能源(02623) - 2025 - 中期业绩

Financial Highlights The Group's H1 2025 revenue significantly decreased, but total comprehensive loss attributable to owners of the Company narrowed to RMB 1.8 million | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 12.9 | 157.3 | -91.8% | | Total comprehensive loss attributable to owners of the Company | 1.8 | 12.8 | -85.9% | - The Group's H1 2025 revenue significantly decreased by 91.8% to RMB 12.9 million, but total comprehensive loss attributable to owners of the Company decreased by 85.9% year-on-year to RMB 1.8 million[3] Unaudited Interim Results Announcement This announcement presents the unaudited interim consolidated results for the six months ended June 30, 2025, reviewed by the Audit Committee - This announcement presents the unaudited interim consolidated results for the six months ended June 30, 2025, which have been reviewed by the Company's Audit Committee[4] Unaudited Condensed Consolidated Statement of Comprehensive Income Despite significantly lower revenue, the Group's H1 2025 operating performance turned profitable, substantially narrowing net loss and total comprehensive loss | Metric (RMB thousand) | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | 12,935 | 157,288 | -91.8% | | Cost of sales | (9,280) | (145,104) | -93.6% | | Gross Profit | 3,655 | 12,184 | -69.9% | | Other income | 532 | 17 | +3029.4% | | Net other gains or losses | 27,190 | 7,533 | +261.0% | | Operating profit/(loss) | 1,675 | (12,610) | Turnaround to profit | | Net loss for the period | (3,564) | (16,353) | -78.2% | | Total comprehensive loss for the period | (1,805) | (12,842) | -85.9% | - Despite a significant decrease in revenue, the Group's operating performance turned from loss to profit, and net loss for the period and total comprehensive loss for the period significantly narrowed due to a substantial increase in other gains, particularly the reversal of excess provision for accrued expenses[5][7] Unaudited Condensed Consolidated Statement of Financial Position As of June 30, 2025, total assets slightly increased, driven by rising non-current assets and ongoing investment in mine development | Metric (RMB thousand) | June 30, 2025 (Unaudited) | Dec 31, 2024 (Audited) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 1,034,999 | 1,015,981 | +1.9% | | Non-current Assets | 674,890 | 592,692 | +13.9% | | Current Assets | 360,109 | 423,289 | -14.9% | | Total Equity | 544,038 | 545,843 | -0.3% | | Total Liabilities | 490,961 | 470,138 | +4.4% | | Trade and Bills Receivables | 4,860 | 22,671 | -78.6% | | Prepayments and Other Receivables | 278,705 | 306,441 | -9.0% | | Cash and Cash Equivalents | 69,912 | 80,001 | -12.6% | | Amounts due to controlling shareholder and ultimate holding company | 374,303 | 267,127 | +40.1% | - The increase in non-current assets primarily reflects the Group's continuous investment in mine development, particularly in property, plant and equipment and right-of-use assets[8] Notes to the Unaudited Condensed Consolidated Financial Information These notes provide detailed explanations of the Group's business, accounting policies, and changes in financial metrics - The notes provide detailed explanations of the Group's business nature, accounting treatments, and the composition and reasons for changes in various financial metrics[10][12][13] 1. General Information Aide New Energy, incorporated in the Cayman Islands, primarily processes iron ore and sells minerals in China, listed on HKEX in 2012 - The Company's principal business involves iron ore processing and sales of iron concentrate and other minerals in China[10] - The Company's shares were listed on the Main Board of The Stock Exchange of Hong Kong on April 27, 2012[10] 2. Basis of Preparation This interim financial information is prepared in accordance with HKAS 34 and applicable Listing Rules, and should be read in conjunction with the 2024 annual financial statements - The financial information is prepared in accordance with the Listing Rules and Hong Kong Accounting Standard 34[12] 3. Accounting Policies The interim financial information is prepared on a historical cost basis, with new HKFRS amendments applied for the first time, which had no significant impact - The revised Hong Kong Financial Reporting Standard 21 "Lack of Exchangeability" was applied for the first time, but it did not have a significant financial impact[13] 4. Estimates Management's judgments, estimates, and assumptions used in preparing this interim financial information are consistent with those applied in the 2024 annual consolidated financial statements - Significant judgments and estimates made by management in preparing the financial information are consistent with those of the previous year[15] 5. Segment Information The Group operates in two segments: Mining and Ore Processing, and Mineral Products Trading, with the former contributing most of H1 2025 gross and net profit - The Group's business is divided into two major segments: "Mining and Ore Processing" and "Mineral Products Trading"[18] | Metric (RMB thousand) | Mining and Ore Processing (H1 2025) | Mineral Products Trading (H1 2025) | | :--- | :--- | :--- | | Revenue | 8,713 | 4,222 | | Gross Profit | 3,652 | 3 | | Net Profit/(Loss) | 2,334 | 74 | - In H1 2025, the Mining and Ore Processing segment contributed the majority of gross profit and net profit, while the Mineral Products Trading segment had extremely low gross profit[19] 6. Revenue H1 2025 total revenue significantly decreased by 91.8% to RMB 12.9 million, with processing service income now comprising 67.4% of total revenue | Revenue Source (RMB thousand) | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Trading - Sales of Crude Iron Powder | 3,404 | 27,327 | -87.5% | | Trading - Sales of Blended Coal | 818 | 119,125 | -99.3% | | Processing Service Income | 8,713 | 10,836 | -19.6% | | Total Revenue | 12,935 | 157,288 | -91.8% | - In H1 2025, processing service income accounted for 67.4% of total revenue, while trading activity income decreased to 32.6%, a stark contrast to the 93.1% share of trading income in the prior year period[20] 7. Other Income Other income significantly increased to RMB 532 thousand in H1 2025, primarily due to higher government grants | Other Income Source (RMB thousand) | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Government Grants | 508 | 11 | +4518.2% | | Others | 24 | 6 | +300.0% | | Total | 532 | 17 | +3029.4% | - The increase in government grants was the primary reason for the substantial growth in other income during this period[20] 8. Net Other Gains or Losses Net other gains significantly increased to RMB 27.2 million in H1 2025, mainly from the reversal of excess provision for accrued expenses of Yangzhuang Iron Mine | Gain Source (RMB thousand) | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Reversal of excess provision for accrued expenses of Yangzhuang Iron Mine | 27,424 | – | | Gain on disposal of exploration rights | – | 7,547 | | Loss on disposal of property, plant and equipment | (234) | (14) | | Total | 27,190 | 7,533 | - In H1 2025, the reversal of excess provision for accrued expenses of Yangzhuang Iron Mine of RMB 27,424 thousand was the main driver for the significant increase in net other gains[22] 9. Net Finance Costs Net finance costs decreased to RMB 1.8 million in H1 2025, primarily due to reduced interest expense on borrowings and reversal of discount on mining rights payables | Finance Cost Item (RMB thousand) | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Interest expense on borrowings | – | (701) | -100% | | Amounts payable for mining rights: reversal of discount | (2,003) | (2,750) | -27.2% | | Interest income from bank deposits | 237 | 584 | -59.5% | | Net Finance Costs | (1,785) | (3,353) | -46.8% | - Interest expense on borrowings decreased to zero in this period, which is a significant reason for the substantial reduction in net finance costs[23] 10. Income Tax Expense Income tax expense increased to RMB 3.5 million in H1 2025, mainly due to China enterprise income tax calculated at a 25% rate | Tax Type (RMB thousand) | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Current tax - Enterprise Income Tax | (3,545) | (1,751) | +102.5% | - China enterprise income tax is provided at a rate of 25% on the assessable profits of the Group's subsidiaries in China, except for those incurring losses[24] 11. Loss Per Share H1 2025 basic loss per share significantly narrowed to RMB 1.02 cents from RMB 4.68 cents, primarily due to reduced loss attributable to owners of the Company | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Loss attributable to owners of the Company (RMB thousand) | (3,564) | (16,353) | -78.2% | | Weighted average number of ordinary shares in issue | 349,785,528 | 349,785,528 | No change | | Basic loss per share (RMB cents) | (1.02) | (4.68) | -78.2% | - There were no dilutive instruments during the period, so diluted loss per share is not presented[27] 12. Dividends The Board resolved not to declare any interim dividend for the six months ended June 30, 2025, consistent with the prior year period - The Board resolved not to declare an interim dividend for H1 2025[28] 13. Trade and Bills Receivables As of June 30, 2025, net trade and bills receivables significantly decreased by 78.6% to RMB 4.9 million, mainly due to reduced short-term receivables | Ageing (RMB thousand) | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Within 3 months | 3,609 | 22,923 | -84.3% | | Over 1 year | 3,051 | 3,051 | No change | | Net Trade Receivables | 3,560 | 22,671 | -84.3% | | Bills Receivables | 1,300 | – | New | | Total | 4,860 | 22,671 | -78.6% | 14. Prepayments and Other Receivables Total prepayments and other receivables decreased to RMB 278.7 million as of June 30, 2025, primarily due to reduced consideration receivable from disposal | Item (RMB thousand) | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Consideration receivable from disposal | 238,284 | 259,484 | -8.2% | | Trade deposits paid to suppliers | 3,405 | 8,496 | -59.9% | | Deductible input VAT | 19,383 | 12,622 | +53.6% | | Compensation receivable | 15,000 | 15,000 | No change | | Total | 278,705 | 306,441 | -9.0% | - Consideration receivable from disposal decreased by RMB 20,000 thousand and related taxes of RMB 1,200 thousand, which were deducted from the consideration receivable after the new mining permit was issued to the buyer[30] - Compensation receivable of RMB 15,000 thousand relates to a settlement agreement with a highway operator, with no significant risk of default[31] 15. Trade Payables Total trade payables decreased by 42.2% to RMB 12.1 million as of June 30, 2025, mainly due to reductions in short-term and long-term payables | Ageing (RMB thousand) | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Within 6 months | 7,285 | 11,151 | -34.6% | | Over 1 year | 2,291 | 5,825 | -60.6% | | Total | 12,088 | 20,895 | -42.2% | 16. Capital Commitments As of June 30, 2025, the Group had no significant capital commitments, with the Zhuge Shangyu Titanium Iron Mine project having paid RMB 507.5 million in total costs | Item (RMB thousand) | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Capital commitments for property, plant and equipment | – | 9,400 | -100% | - The Zhuge Shangyu Titanium Iron Mine new processing and production line project has paid total costs of approximately RMB 507,473 thousand, with the total project cost adjusted down to RMB 440,000 thousand[34] Management Discussion and Analysis The Group's revenue significantly decreased by 91.8%, but total comprehensive loss narrowed by 85.9% due to a reversal of accrued expenses - The Group actively responds to government calls, identifying wind, solar, and concentrated solar power as new economic growth points, and deepening the full industrial chain of titanium metal products like sponge titanium and high-purity titanium[36] Business Review The Group's core business is iron and titanium iron ore in Shandong, China; H1 2025 revenue significantly decreased, but comprehensive loss narrowed - The Group's principal business involves iron ore and titanium iron ore exploration, mining, and processing, as well as mineral trading in Shandong Province, China[36] - Revenue significantly decreased by 91.8% to RMB 12.9 million, primarily affected by mineral price fluctuations and reduced processing orders[36] - Total comprehensive loss decreased by 85.9% to RMB 1.8 million, mainly benefiting from the reversal of excess provision for accrued expenses of Yangzhuang Iron Mine of RMB 27.4 million[37] Summary of Work in the First Half of 2025 The Group advanced Brazilian crude powder processing, achieved RMB 6.171 million in coal trade revenue, and progressed Zhuge Shangyu mine construction and environmental initiatives - In H1, Brazilian crude powder toll processing volume reached 103 thousand tonnes[38] - Coal and coal product trading achieved sales revenue of RMB 6.171 million[38] - The Zhuge Shangyu mine and beneficiation plant new project, with an investment of approximately RMB 1.5 billion, has largely completed civil works and steel structure installation, with future development towards unmanned and intelligent operations[38] - The Zhuge Shangyu 800,000 tonnes/year mining right has been processed, meeting legal conditions for the infrastructure construction period; the 10 million tonnes/year iron-titanium ore expansion project obtained an exploration permit[39] - Shandong Shengtai Mining Technology Co., Ltd. was recognized as a provincial "Innovative Small and Medium-sized Enterprise" and "Technological Innovation Enterprise," and the Zhuge Shangyu 10 million tonnes/year beneficiation project was designated a "Shandong Province Green Low-Carbon High-Quality Development Key Project"[39] Shareholder Loans Controlling shareholder and ultimate holding company advanced approximately RMB 107.2 million to the Group as interest-free, unsecured, non-fixed repayment term loans - Controlling shareholder Mr. Li Yunde and ultimate holding company Hongfa further advanced a total of approximately RMB 107.176 million to the Group[40] - These advances are interest-free, unsecured, and have no fixed repayment terms[40] Financial Review This section reviews the Group's H1 2025 financial performance, including product prices, revenue, costs, and explains the significant narrowing of total comprehensive loss - The Group's revenue significantly decreased by 91.8%, primarily due to slower trading activities and reduced processing orders[41] - Total comprehensive loss decreased by 85.9%, mainly benefiting from the reversal of excess provision for accrued expenses of Yangzhuang Iron Mine[51] Prices of the Group's Products In H1 2025, the Group did not produce iron concentrate, while average selling prices for crude iron powder and blended coal increased by 12.9% and 8.7% - No iron concentrate was produced or sold in H1 2025[42] | Traded Goods | H1 2025 Average Selling Price (RMB/tonne) | H1 2024 Average Selling Price (RMB/tonne) | Change (%) | | :--- | :--- | :--- | :--- | | Crude Iron Powder | 858.5 | 760.2 | +12.9% | | Blended Coal | 312.2 | 287.2 | +8.7% | Revenue Total revenue for H1 2025 was RMB 12,935 thousand, a 91.8% year-on-year decrease, with processing service income significantly increasing its share to 67.4% | Revenue Source | H1 2025 (RMB thousand) | Share (%) | H1 2024 (RMB thousand) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Trading Activities Sales - Crude Iron Powder | 3,404 | 26.3% | 27,327 | 17.4% | | Trading Activities Sales - Blended Coal | 818 | 6.3% | 119,125 | 75.7% | | Processing Services | 8,713 | 67.4% | 10,836 | 6.9% | | Total Revenue | 12,935 | 100.0% | 157,288 | 100.0% | | Trading Volume (thousand tonnes) | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Crude Iron Powder | 4.0 | 35.9 | -88.9% | | Blended Coal | 2.6 | 414.8 | -99.4% | | Total Volume | 6.6 | 450.7 | -98.5% | Cost of Sales H1 2025 total cost of sales significantly decreased by 93.6% to RMB 9.3 million, consistent with revenue decline, due to reduced trading volume and processing services | Cost of Sales Source | H1 2025 (RMB thousand) | Share (%) | H1 2024 (RMB thousand) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Cost of sales for trading activities | 4,219 | 45.5% | 136,852 | 94.3% | | Cost of sales for processing services | 5,061 | 54.5% | 8,252 | 5.7% | | Total Cost of Sales | 9,280 | 100.0% | 145,104 | 100.0% | - Total cost of sales decreased by 93.6% to RMB 9.3 million, primarily due to a reduction in mineral trading volume of approximately 444.1 thousand tonnes and decreased processing services[46] Gross Profit and Gross Profit Margin H1 2025 gross profit decreased by 69.9% to RMB 3.7 million, but overall gross profit margin increased to 28.3% due to higher-margin processing service income | Gross Profit Source | H1 2025 (RMB thousand) | Share (%) | H1 2024 (RMB thousand) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Gross profit from trading activities | 3 | 0.1% | 9,600 | 78.8% | | Gross profit from processing services | 3,652 | 99.9% | 2,584 | 21.2% | | Total Gross Profit | 3,655 | 100.0% | 12,184 | 100.0% | | Gross Profit Margin | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Gross profit margin from trading activities - Crude Iron Powder | 0.0% | 0.2% | | Gross profit margin from trading activities - Blended Coal | 0.2% | 8.0% | | Gross profit margin from processing services | 41.9% | 23.8% | | Overall Gross Profit Margin | 28.3% | 7.7% | - The improvement in overall gross profit margin is primarily attributable to the increased proportion of processing service income, which has a higher profit margin than trading activities[48] Distribution Costs and Administrative Expenses Distribution and administrative expenses decreased by 5.7% to RMB 29.8 million, mainly due to reduced distribution costs from the sharp decline in trading activities - Total distribution costs and administrative expenses decreased by 5.7% to RMB 29.8 million[49] - Distribution costs decreased by RMB 3.1 million, primarily due to a sharp reduction in trading activities[49] Net Finance Costs Net finance costs decreased, primarily due to the absence of interest expense on borrowings in the current period, as all borrowings were fully repaid in 2024 - Net finance costs decreased, mainly because there were no interest expenses on borrowings in the current period, as all borrowings were fully repaid in 2024[50] Total Comprehensive Income H1 2025 total comprehensive loss attributable to owners of the Company significantly decreased by 85.9% to RMB 1.8 million, primarily due to a RMB 27.4 million reversal of accrued expenses - Total comprehensive loss attributable to owners of the Company decreased by 85.9% to RMB 1.8 million[51] - The reduction in loss was mainly attributable to the RMB 27.4 million reversal of excess provision for accrued expenses of Yangzhuang Iron Mine[51] Work Plan for the Second Half of 2025 The Group plans to enhance mining, expand the titanium industry chain, advance Zhuge Shangyu low-carbon project, increase coal trade, and promote the 10 million tonnes/year iron-titanium ore expansion - The plan for H2 includes increasing coal and coal product trading volume to boost sales and profitability[52] - The Zhuge Shangyu mine is preparing to enter the infrastructure construction and mining phase, with plans to complete equipment installation and joint commissioning, and promote integrated industry-university-research development[52] - Focus will be placed on low-carbon, environmentally friendly, and sustainable new energy projects, with plans to adjust the industrial structure[52] - The Zhuge Shangyu 10 million tonnes/year iron-titanium ore expansion project will advance work such as defining the mining area boundaries and reviewing the development and utilization plan[52] Other Information Ongoing capital expenditures for Zhuge Shangyu Titanium Iron Mine development impacted liquidity, increasing the gearing ratio and decreasing the current ratio - The Group's ongoing capital expenditures for the Zhuge Shangyu Titanium Iron Mine development have led to a decrease in the current ratio[54] - The Group has 126 employees and implements a share award scheme to recognize and incentivize talent[57][61] Liquidity and Financial Resources As of June 30, 2025, total borrowings increased to RMB 374.3 million, cash was RMB 72.4 million, gearing ratio rose to 40.8%, and current ratio decreased to 0.87 times | Metric (RMB million) | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total Borrowings | 374.3 | 267.1 | +40.1% | | Cash and Bank Balances | 72.4 | 80.0 | -9.5% | | Financial Ratios | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Gearing Ratio | 40.8% | 32.9% | +7.9% | | Current Ratio | 0.87 times | 1.07 times | -0.20 times | - The decrease in the current ratio is primarily attributable to continuous capital expenditures for the development of the Zhuge Shangyu Titanium Iron Mine, funded by advances from the controlling shareholder[54] Material Investments As of June 30, 2025, the Group held no material investments - The Group held no material investments at the end of the reporting period[55] Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures For the six months ended June 30, 2025, the Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures - No material acquisition or disposal activities occurred during the reporting period[56] Employees and Remuneration Policies As of June 30, 2025, the Group had 126 employees, with RMB 7.4 million in benefit expenses, offering pension plans, MPF, and a restricted share award scheme | Metric | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Number of Employees | 126 | 119 | +7 | | Employee Benefit Expenses (RMB million) | 7.4 | 6.8 (H1 2024) | +8.8% | - The Group provides retirement benefits for employees and has adopted a restricted share award scheme[57] Pledged Assets As of June 30, 2025, the Group pledged RMB 2,500 thousand in time deposits as security for contractors - The Group has pledged RMB 2,500 thousand in time deposits to provide guarantees to contractors[58] Foreign Exchange Risk The Group's revenues, expenses, and monetary assets/liabilities are primarily denominated in RMB and HKD, with no current foreign exchange hedging policy - The Group primarily conducts transactions in RMB and HKD and currently has no foreign exchange hedging policy[59] Contingent Liabilities As of June 30, 2025, the Group had no material contingent liabilities - The Group had no material contingent liabilities at the end of the reporting period[60] Share Award Scheme The Group's 2020 restricted share award scheme incentivizes employees; as of June 30, 2025, the trustee held 501,000 restricted shares, with no new grants this period - The Group has a share award scheme aimed at recognizing and incentivizing employees[61] - As of June 30, 2025, the trustee held 501,000 restricted shares, but no restricted shares were granted to employees during the period[61] - The maximum number of restricted shares available for grant under the scheme is 35,028,652 shares[61] Events After the Reporting Period No material events occurred after the reporting period up to the date of this announcement - No material events occurred after the end of the reporting period up to the date of this announcement[62] 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 listed securities - The Company did not purchase, sell, or redeem any listed securities during the reporting period[63] Standard Code for Securities Transactions by Directors The Company has adopted and confirmed compliance with the Standard Code for Securities Transactions by Directors as set out in Appendix C3 of the Listing Rules - The Company's directors have complied with the Standard Code for Securities Transactions as set out in Appendix C3 of the Listing Rules[64] Corporate Governance Practices The Company has adopted and believes it has complied with all relevant code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules - The Company has complied with the Corporate Governance Code as set out in Appendix C1 of the Listing Rules[65] Audit Committee The Audit Committee, comprising four independent non-executive directors, has reviewed and approved this interim consolidated results, confirming its compliance with applicable standards and regulations - The Audit Committee, composed of four independent non-executive directors, has reviewed and approved these interim results[66] Board of Directors The Board of Directors consists of Mr. Li Yunde as Chairman, Mr. Geng Guohua as CEO, Mr. Lang Weiguo as Executive Director, and four independent non-executive directors - The Board of Directors includes three executive directors and four independent non-executive directors[66]