北大青鸟环宇(08095) - 2025 - 中期业绩

Interim Results Announcement This report presents the unaudited interim financial statements for the six months ended June 30, 2025, including management's discussion and analysis, and other relevant disclosures GEM Features and Disclaimer This section outlines the GEM market's role as a listing platform for SMEs, noting its higher investment risks, while the Stock Exchange disclaims responsibility for this announcement's content, and directors assume full accountability for its accuracy - The GEM market provides a listing platform for small and medium-sized companies, but it carries higher investment risks[3] - Hong Kong Exchanges and Clearing Limited and the Stock Exchange are not responsible for the content of this announcement and make no representations regarding it[3] - The company's directors collectively and individually assume full responsibility for this announcement, confirming the information is accurate, complete, and not misleading[3] Interim Results (Unaudited) This section presents the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025, including the statement of profit or loss and other comprehensive income, statement of financial position, statement of changes in equity, and statement of cash flows, reflecting operational performance, financial condition, and cash flows during the period Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the Group's revenue significantly increased, but operating loss and loss for the period both substantially widened, primarily due to losses from the disposal of a joint venture and an associate, alongside increased administrative expenses Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 300,562 | 214,841 | | Cost of sales and services | (252,873) | (183,031) | | Gross profit | 47,689 | 31,810 | | Operating loss | (60,089) | (11,923) | | Loss before tax | (50,746) | (12,563) | | Loss for the period | (29,102) | (14,690) | | Loss for the period attributable to owners of the Company | (28,372) | (6,049) | | Basic and diluted loss per share (cents per share) | (1.87) | (0.40) | - Loss on disposal of a joint venture was RMB 16,142 thousand, and loss on partial disposal of an associate was RMB 22,097 thousand[4] - Administrative expenses increased from RMB 37,866 thousand in 2024 to RMB 62,567 thousand in 2025[4] Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets and net assets slightly decreased, but net current assets significantly increased, indicating an improvement in liquidity Condensed Consolidated Statement of Financial Position Key Data | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total assets | 5,330,276 | 5,516,277 | | Current assets | 1,172,380 | 1,101,413 | | Current liabilities | 870,873 | 1,037,109 | | Net current assets | 301,507 | 64,304 | | Net assets | 3,960,620 | 3,964,803 | - Investment in associates decreased from RMB 2,597,989 thousand as of December 31, 2024, to RMB 2,354,557 thousand as of June 30, 2025[6] - Cash and cash equivalents increased from RMB 147,634 thousand as of December 31, 2024, to RMB 183,040 thousand as of June 30, 2025[6] Condensed Consolidated Statement of Changes in Equity Total equity for the period slightly decreased, primarily due to a negative total comprehensive income for the period, accompanied by a reduction in non-controlling interests Condensed Consolidated Statement of Changes in Equity Key Data | Indicator | June 30, 2025 (RMB thousands) | January 1, 2025 (RMB thousands) | | :--- | :--- | :--- | | Equity attributable to owners of the Company | 3,710,875 | 3,709,800 | | Non-controlling interests | 249,745 | 255,003 | | Total equity | 3,960,620 | 3,964,803 | - Total comprehensive income for the period was RMB (533) thousand, compared to RMB 12,247 thousand in the same period last year[8] - Non-controlling interests decreased by RMB 5,258 thousand during the period[8] Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2025, the Group experienced net cash outflow from operating activities, but a significant increase in net cash inflow from investing activities ultimately led to a net increase in cash and cash equivalents Condensed Consolidated Statement of Cash Flows Key Data | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net cash (used in)/from operating activities | (100,772) | 155,028 | | Net cash from/(used in) investing activities | 243,380 | (189,609) | | Net cash (used in)/from financing activities | (107,980) | 54,126 | | Net increase in cash and cash equivalents | 34,628 | 19,545 | | Cash and cash equivalents at end of period | 183,040 | 176,155 | - Net cash from investing activities shifted from an outflow in the prior period to an inflow this period, likely related to the disposal of associate shares[9] Notes to Condensed Consolidated Financial Statements This section provides detailed notes to the condensed consolidated financial statements, covering general information, accounting policies, revenue breakdown, segment information, finance costs, taxation, loss per share, dividends, receivables and payables, share capital, related party transactions, and financial guarantees, offering context and specifics for understanding the financial data General Information The Company is a Sino-foreign joint stock limited liability company incorporated in China, with H shares listed on GEM, primarily engaged in investment holding, while its subsidiaries operate diverse businesses including tourism, wine, metal products, and LED devices - The Company's H shares are listed on GEM, with its principal business being investment holding[10] - Subsidiary businesses encompass tourism and leisure, wine production and sales, metal product sales and procurement, and LED device sales and production[10] Basis of Preparation and Significant Accounting Policies The condensed consolidated financial statements are prepared in accordance with HKAS 34 and the GEM Listing Rules, reviewed by the audit committee, with no material impact on accounting policies or reported amounts from new and revised HKFRSs adopted this period - The condensed consolidated financial statements are prepared in accordance with HKAS 34 and the GEM Listing Rules[11] - The adoption of new and revised HKFRSs had no material impact on the Group's accounting policies or reported amounts[11] - The condensed consolidated financial statements are unaudited but have been reviewed by the Audit Committee[12] Revenue Total revenue for the period increased by 39.9% year-on-year, primarily driven by significant growth in metal product sales and shuttle bus services, with tourism and leisure services also showing substantial improvement Revenue from Contracts with Customers by Major Product or Service Line | Product or Service Line | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Metal products | 190,238 | 128,573 | | Shuttle bus services | 68,680 | 56,187 | | LED devices | 26,539 | 25,646 | | Tourism and leisure services | 11,169 | 182 | | Wine and related products | 3,887 | 4,253 | | Others | 49 | – | | Total Revenue | 300,562 | 214,841 | - Revenue from metal products increased by 48.0% year-on-year, serving as the primary driver of revenue growth this period[14] - Tourism and leisure services revenue significantly increased from RMB 182 thousand to RMB 11,169 thousand[14] Other Gains, Income and Losses, Net Net other gains, income, and losses for the period resulted in a loss of RMB 1,817 thousand, an expansion of the loss compared to the prior period, mainly due to net losses in the "Others" category Other Gains, Income and Losses, Net | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Bank interest income | 456 | 556 | | Government grants | 25 | 247 | | Tax incentives | 199 | 1,788 | | Others | (2,497) | (2,962) | | Total | (1,817) | (371) | - Government grants and tax incentives both significantly decreased compared to the same period last year[15] Segment Information The Group operates four reportable segments: tourism development, investment holding, trading of metal products, and sales and production of LED devices, with metal product trading contributing the most revenue, investment holding showing significant growth in share of profits of associates, and China (excluding Hong Kong) being the primary source of revenue - The Group has four reportable segments: tourism development, investment holding, trading of metal products, and sales and production of LED devices[17] Segment Revenue and Profit/Loss | Segment | 2025 Revenue (RMB thousands) | 2024 Revenue (RMB thousands) | 2025 Segment (Loss)/Profit (RMB thousands) | 2024 Segment Profit/(Loss) (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Tourism Development | 79,849 | 56,369 | (1,652) | 5,821 | | Investment Holding | – | – | (14,042) | 19,727 | | Trading of Metal Products | 190,238 | 128,573 | 3,072 | 1,867 | | Sales and Production of LED Devices | 26,539 | 25,646 | (6,936) | (6,614) | | All Other Segments | 3,936 | 4,253 | (1,169) | (437) | | Total | 300,562 | 214,841 | (20,727) | 20,364 | - Share of profits of associates increased from RMB 22,859 thousand in 2024 to RMB 30,247 thousand in 2025[19] Geographical Revenue and Non-current Assets | Region | 2025 Revenue (RMB thousands) | 2024 Revenue (RMB thousands) | 2025 Non-current Assets (RMB thousands) | 2024 Non-current Assets (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | China (excluding Hong Kong) | 296,675 | 203,201 | 3,348,586 | 3,596,161 | | United States | 3,887 | 4,253 | 14,612 | 15,072 | | Singapore | – | 7,387 | – | – | | Hong Kong | – | – | – | 1 | | Total | 300,562 | 214,841 | 3,363,198 | 3,611,234 | - Revenue from Customer A (Metal Products Trading segment) increased from RMB 86,959 thousand in 2024 to RMB 190,238 thousand in 2025[24] Finance Costs, Net Net finance costs for the period amounted to RMB 19,896 thousand, a decrease from the prior period, primarily comprising interest on bank and other borrowings and foreign exchange losses Finance Costs, Net | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest on bank, other borrowings and lease liabilities | 19,181 | 22,855 | | Net foreign exchange losses | 715 | 590 | | Total | 19,896 | 23,445 | - Interest expenses on bank, other borrowings, and lease liabilities decreased[26] Income Tax Credit/Expense The period recorded an income tax credit of RMB 21,644 thousand, primarily due to adjustments for over-provision in prior years in China, a stark contrast to the income tax expense in the same period last year Income Tax Credit/Expense | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current tax – China | 1,118 | 2,696 | | Over-provision in prior years – China | (22,217) | – | | Deferred tax | (547) | (571) | | Total | (21,644) | 2,127 | - Over-provision in prior years in China of RMB 22,217 thousand was the main reason for the income tax credit this period[27] - The Company's subsidiaries established in China are generally subject to income tax at a rate of 25%[28] Loss for the Period The loss for the period is presented after deducting expenses such as amortization of other intangible assets and depreciation Loss for the Period Deducted Items | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Amortisation of other intangible assets | 6,766 | 6,796 | | Depreciation | 15,068 | 14,645 | Loss Per Share For the six months ended June 30, 2025, basic and diluted loss per share attributable to owners of the Company significantly increased to RMB 1.87 cents, primarily due to the expanded loss for the period Loss Per Share | Indicator | 2025 (RMB) | 2024 (RMB) | | :--- | :--- | :--- | | Basic and diluted loss per share (cents per share) | (1.87) | (0.40) | | Loss for the period attributable to owners of the Company | 28,372,000 | 6,049,000 | | Weighted average number of ordinary shares in issue | 1,514,464,000 | 1,514,464,000 | - Basic and diluted loss per share are identical, with no adjustments made[30] Dividends The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (2024: nil)[30] Property, Plant and Equipment During the period, the Group made additions to property, plant and equipment amounting to approximately RMB 5.90 million - Additions to property, plant and equipment during the period amounted to approximately RMB 5.90 million[31] Trade and Other Receivables As of June 30, 2025, total trade and other receivables slightly increased, with the aging analysis of trade receivables showing that most are due within three months, indicating diversified credit risk Trade and Other Receivables | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade and bills receivables (net) | 168,278 | 168,602 | | Other receivables (net) | 762,967 | 757,239 | | Prepayments to suppliers | 3,259 | 11,058 | | Prepayments | 38,003 | 2,077 | | Total | 972,507 | 938,976 | Aging Analysis of Trade Receivables | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Less than 3 months | 135,029 | 118,720 | | 3 to 6 months | 32,096 | 49,356 | | 6 to 12 months | 720 | 526 | | Over 1 year | 433 | – | | Total | 168,278 | 168,602 | - The credit period granted to customers is generally three months, and there is no excessive concentration of credit risk[32] Trade and Other Payables As of June 30, 2025, total trade and other payables decreased, mainly due to a reduction in accrued expenses and other payables, with the aging analysis of trade payables showing a significant portion due over one year Trade and Other Payables | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade payables | 104,999 | 107,384 | | Contract liabilities | 2,024 | 1,236 | | Accrued expenses and other payables | 169,134 | 219,538 | | Dividends payable | 21,194 | 21,313 | | Salaries and staff welfare payable | 12,221 | 11,439 | | Amounts due to associates | 74 | 2,794 | | Amounts due to related parties | 6,177 | 6,327 | | Total | 315,823 | 370,031 | Aging Analysis of Trade Payables | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | 0 to 90 days | 22,995 | 38,769 | | 91 to 180 days | 67 | 966 | | 181 to 360 days | 21,379 | 1,918 | | Over 1 year | 60,558 | 65,731 | | Total | 104,999 | 107,384 | Share Capital The Company's registered, issued, and fully paid share capital remained unchanged during the period, comprising both unlisted shares and H shares Share Capital Composition | Share Class | Number of Shares (thousand shares) | Amount (RMB thousands) | | :--- | :--- | :--- | | Unlisted shares | 700,000 | 70,000 | | H shares | 814,464 | 81,446 | | Total | 1,514,464 | 151,446 | - The par value per share is RMB 0.10[34] Significant Related Party Transactions This section discloses balances with related parties and key management personnel remuneration, with the latter showing a decrease compared to the prior period Balances with Related Parties | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Amounts due from associates | 460 | 390 | | Amounts due to associates | 74 | 2,794 | | Amounts due to related companies controlled by Peking University | 5,732 | 5,882 | Key Management Personnel Remuneration | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Short-term employee benefits | 1,729 | 2,121 | | Post-employment benefits | 254 | 257 | | Total | 1,983 | 2,378 | Financial Guarantees The Group provided financial guarantees of RMB 100 million for bank facilities granted to an associate, which has fully drawn down the facilities - The Group issued two guarantees for bank facilities granted to an associate, with a maximum limit of RMB 100,000,000[36] - The associate has drawn down RMB 100,000,000 of the facilities[36] Capital Commitments As of June 30, 2025, the Group's contracted but unprovided capital commitments for property, plant and equipment significantly increased, alongside committed capital contributions to an associate Capital Commitments | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Contracted but not provided for – property, plant and equipment | 98,192 | 69,270 | | Committed capital contributions to an associate | 3,478 | 3,478 | - Capital commitments for property, plant and equipment increased by approximately 41.7% year-on-year[37] Management Discussion and Analysis This section details the Group's performance and strategies across tourism development, investment holding, LED device sales and production, metal product trading, and other businesses, reviewing financial conditions, liquidity, significant investments, and risk management, while also outlining future challenges and opportunities Business Review The Group's diversified businesses include tourism development, investment holding, LED device sales and production, metal product trading, and other ventures; tourism benefited from favorable weather, investment holding involved arbitration and disposal of shares in Qingniao Fire, LED business attracted new investors, and vocational education expansion is planned Tourism Development The Group's tourism business in Nanyue District, Hunan Province, benefited from favorable weather, with visitor and pilgrim numbers increasing by approximately 19% year-on-year; additionally, the Group plans to establish a joint venture in Gansu Province to invest in sightseeing rail transit and supporting facilities to expand tourism project investments - For the six months ended June 30, 2025, the number of visitors and pilgrims to Hengshan Scenic Area increased by approximately 19% year-on-year[39] - The Company's non-wholly owned subsidiary, Chuanqi Tourism (Hunan) Co Ltd, will invest RMB 49 million to establish a joint venture for the development and operation of sightseeing rail transit, sightseeing buses, and supporting facilities within the Zha Ga Na Scenic Area in Diebu County, Gansu Province[40] Investment Holding The Group's investment holding business includes private equity funds, semiconductor materials and display device companies, shares in Qingniao Fire, and other financial assets; regarding the disposal of Qingniao Fire shares, an arbitration award requires the buyer to return 70,044,000 shares, and the Group has sold 20,000,000 Qingniao Fire shares under the disposal authorization, with net proceeds of approximately RMB 232.1 million to be used for debt repayment - Investment holding business primarily includes private equity funds, semiconductor materials and display device companies, and shares in Qingniao Fire Co Ltd[41] - The Beijing Arbitration Commission ruled that the buyer must return 70,044,000 shares of Qingniao Fire to the Company[44] - The Company has sold a total of 20,000,000 shares of Qingniao Fire under the disposal authorization, with gross proceeds of approximately RMB 233.4 million and net proceeds of approximately RMB 232.1 million[49] - The net proceeds from the disposal will be used to repay the Group's bank and other borrowings to strengthen its liquidity position[48] - As of the date of this announcement, the Group holds 186,569,363 shares of Qingniao Fire, representing approximately 21.4% equity interest[50] Sales and Production of LED Devices The Company, through Guangdong Xinrui Liuming Optoelectronics Co Ltd, engages in the R&D, production, and sales of high-end ceramic high-power LED devices and modules; recently, Guangdong Liuming received an investment of RMB 50.63 million, which will support its growth and development - Primarily engaged in the R&D, production, and sales of high-end ceramic high-power LED devices and modules, focusing on special light source applications[51] - Investors injected RMB 50.63 million into Guangdong Liuming, reducing the Group's effective equity interest in Guangdong Liuming from 94% to approximately 62.98%[52] Metal Products Trading During the period, the Group engaged in the sale and procurement of metal products in China - The Group engaged in the sale and procurement of metal products in China during the period[53] Other Businesses The Group operates a winery in the United States and has completed the acquisition of a 70% equity interest in Beijing Qingniao Vocational Education Technology Development Co Ltd to expand into vocational education and diversify its business - The Group operates a winery in Virginia, USA, producing and selling wine and related products[54] - The acquisition of a 70% equity interest in Beijing Qingniao Vocational Education Technology Development Co Ltd for a consideration of RMB 13.05 million has been completed, aiming to diversify business into vocational education[54] Prospects Looking ahead to the second half of 2025, global economic growth is expected to remain sluggish, posing challenges for the Group with weakening local consumption and reduced demand for products and services; in response, the Group will implement cost control, enhance operational efficiency, expand new customer bases and product portfolios, and prudently evaluate potential investment opportunities to maintain profitability and competitive advantages - Global economic growth is expected to remain sluggish in the second half of 2025, and the Group will face weakening local consumer spending and reduced demand for products and services[55] - The Group will implement measures including closely monitoring and controlling costs, improving operational efficiency, and expanding new customer segments and product portfolios[55] - The Group will continue to adopt a prudent approach to explore and evaluate potential investment opportunities, aiming to achieve a balanced and diversified investment portfolio[55] Financial Review This section provides a detailed financial review of the Group's business segments, highlighting significant growth in total revenue and gross profit, but also a substantial increase in loss attributable to owners of the Company due to several non-recurring losses, including an alleged misappropriation event, disposal of an associate, and a joint venture loss Tourism Development (Financial) Tourism development business revenue increased by 41.7% year-on-year, primarily due to improved performance after being adversely affected by extreme weather in the prior period; however, the Group recorded a loss of approximately RMB 24 million due to an alleged misappropriation of funds by a cashier - Tourism development business revenue was approximately RMB 79.8 million, an increase of 41.7% compared to the same period in 2024[56] - The Group recorded a loss of approximately RMB 24 million due to an alleged misappropriation event, which is currently under forensic investigation[57] Investment Holding (Financial) Segment total assets for investment holding business decreased by 5.7%, primarily due to the disposal of 20,000,000 shares in associate Qingniao Fire, resulting in a recorded loss of approximately RMB 22.1 million - Segment total assets for investment holding business decreased by 5.7% to approximately RMB 4.0255 billion[58] - A loss of approximately RMB 22.1 million was recorded due to the partial disposal of an equity interest in an associate[58] Sales and Production of LED Devices (Financial) Revenue from the sales and production of LED devices business was approximately RMB 26.5 million, representing a 3.5% year-on-year increase - Revenue from the sales and production of LED devices business was approximately RMB 26.5 million, an increase of 3.5% year-on-year[59] Metal Products Trading (Financial) Revenue from metal products trading business was approximately RMB 190.2 million, a 48.0% year-on-year increase, primarily attributed to higher transaction volumes; however, gross profit margin decreased to 1.5% due to market competition and price fluctuations - Revenue from metal products trading business was approximately RMB 190.2 million, an increase of 48.0% year-on-year[60] - Gross profit margin decreased from 2.1% in 2024 to 1.5% in the current period[60] Other Businesses (Financial) Winery business revenue remained largely stable year-on-year, amounting to approximately RMB 3.9 million - Winery business revenue was approximately RMB 3.9 million, remaining largely stable year-on-year[61] Revenue and Gross Profit The Group's total revenue increased by 39.9% year-on-year to RMB 300.6 million, and gross profit grew by 49.9% to RMB 47.7 million, mainly driven by improved tourism development business and increased metal product trading volume - Total revenue was approximately RMB 300.6 million, an increase of 39.9% compared to the same period in 2024[62] - Gross profit increased by 49.9% to approximately RMB 47.7 million[62] Loss on Disposal of a Joint Venture The Group recorded a loss of approximately RMB 16.1 million due to the dissolution of an immaterial joint venture, primarily resulting from the reclassification of exchange reserves to profit or loss - A loss of approximately RMB 16.1 million was recorded due to the dissolution of an immaterial joint venture[63] Loss on Partial Disposal of an Associate The Group recorded a loss of approximately RMB 22.1 million due to the partial disposal of associate Qingniao Fire under the disposal authorization - A loss of approximately RMB 22.1 million was recorded due to the partial disposal of associate Qingniao Fire[64] Finance Costs, Net (Financial) Net finance costs amounted to approximately RMB 19.9 million, primarily comprising interest on bank and other borrowings, interest on lease liabilities, and net exchange differences - Finance costs were approximately RMB 19.9 million, a decrease from RMB 23.4 million in the same period last year[65] Share of Profits of Associates The Group's share of profits of associates increased by 32.3% year-on-year to approximately RMB 30.2 million, mainly due to the relatively unsatisfactory financial performance of associates in the prior period - Share of profits of associates was approximately RMB 30.2 million, an increase of 32.3% year-on-year[66] Share of Losses of Joint Ventures The Group's share of losses of joint ventures was approximately RMB 1 million, an increase compared to the prior period - Share of losses of joint ventures was approximately RMB 1 million, compared to RMB 54 thousand in the same period last year[67] Income Tax Credit/Expense (Financial) The period recorded an income tax credit of approximately RMB 21.6 million, primarily comprising net China corporate income tax credit and deferred tax credit - Income tax credit for the period was approximately RMB 21.6 million, compared to an expense of RMB 2.2 million in the same period last year[68] Loss Attributable to Owners of the Company Loss attributable to owners of the Company significantly increased by 369.0% year-on-year to approximately RMB 28.4 million, primarily due to several non-recurring losses including an alleged misappropriation event, partial disposal of an associate, and dissolution of a joint venture - Loss attributable to owners of the Company was approximately RMB 28.4 million, an increase of 369.0% year-on-year[69] - Primarily attributed to: a loss of approximately RMB 24 million from an alleged misappropriation event, a loss of approximately RMB 22.1 million from the partial disposal of Qingniao Fire, and a loss of approximately RMB 16.1 million from the dissolution of an immaterial joint venture[69] Financial Position The Group's current ratio increased to 1.35 and gearing ratio decreased to 22.8%, indicating improved liquidity and reduced financial leverage, mainly due to a decrease in bank and other borrowings Financial Ratios | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current ratio | 1.35 | 1.06 | | Gearing ratio | 22.8% | 25.0% | - The increase in current ratio and decrease in gearing ratio were primarily due to a reduction in the Group's bank and other borrowings during the period[70] Significant Acquisitions and Disposals of Subsidiaries and Affiliated Companies Aside from those already disclosed in this report, the Group had no other significant acquisitions or disposals of subsidiaries and affiliated companies requiring disclosure during the period - For the six months ended June 30, 2025, the Group did not undertake any significant acquisitions or disposals requiring disclosure under the GEM Listing Rules[71] Liquidity, Financial Resources and Capital Structure The Group primarily relies on internal financial resources and corporate borrowings for operations, with cash and cash equivalents of approximately RMB 183.0 million at period-end; total outstanding borrowings were approximately RMB 901.4 million, mostly due within one year, bearing fixed and floating interest rates - As of June 30, 2025, the Group had cash and cash equivalents of approximately RMB 183.0 million[72] - The Group's total outstanding borrowings amounted to approximately RMB 901.4 million[72] Outstanding Borrowings Repayment Schedule | Repayment Period | Amount (RMB thousands) | | :--- | :--- | | Within one year | 534,800 | | One to two years | 84,100 | | Two to five years | 178,000 | | More than five years | 104,500 | | Total | 901,400 | - Approximately RMB 556.4 million bears interest at fixed rates, and approximately RMB 345.0 million bears interest at floating rates, with annual interest rates ranging from zero to 5.4%[72] Significant Investments Held The Group holds financial assets totaling approximately RMB 758.7 million, representing 14.2% of total assets, primarily including a 13.7% equity interest in Shanghai Xianyao Display Technology Co Ltd; the Group's investment strategy is to diversify risk, seize market opportunities, and plans to invest in industries such as tourism and leisure, new materials, semiconductors, and high-end equipment manufacturing - The Group holds financial assets at fair value through other comprehensive income and at fair value through profit or loss totaling approximately RMB 758.7 million, representing 14.2% of total assets[74] - Holds a 13.7% equity interest in Shanghai Xianyao Display Technology Co Ltd, with a fair value of approximately RMB 712.8 million[75] - The investment strategy is to diversify assets and businesses into promising industries, including tourism and leisure, new materials, semiconductor products and technology, and high-end equipment manufacturing[75] Future Plans for Material Investments or Capital Assets As of June 30, 2025, the Group had no material investment plans other than those already disclosed - As of June 30, 2025, the Group had no material investment plans[76] Contingent Liabilities The Group has contingent liabilities of approximately RMB 100 million for guarantees provided for bank facilities granted to an associate - The Group has contingent liabilities of approximately RMB 100 million for guarantees provided for bank facilities granted to an associate[77] Foreign Currency Risk The Group is exposed to foreign currency risks from USD, RMB, and HKD, but due to most business activities being denominated in RMB, there is a natural hedge, thus no foreign currency hedging policy has been formulated - The Group is exposed to foreign currency risks from USD, RMB, and HKD[79] - The Group has not formulated a foreign currency hedging policy, as turnover and most production costs are denominated in RMB, providing a natural hedge[79] Pledge of Assets As of June 30, 2025, the Group has pledged fixed assets of approximately RMB 197.7 million, investment properties of approximately RMB 333.6 million, and equity interests in an associate as collateral for bank and other borrowings - Fixed assets of approximately RMB 197.7 million have been pledged as collateral[80] - Investment properties of approximately RMB 333.6 million have been pledged as collateral[80] - Equity interests in an associate have been pledged as collateral[80] Employees and Remuneration Policies As of the end of the reporting period, the Group employed 740 staff, a 23.3% increase from the end of 2024; staff costs, including directors' emoluments, were approximately RMB 38.3 million, consistent with the increase in headcount, and the Group offers competitive remuneration packages and prioritizes workplace safety - The Group employed 740 staff, an increase of 23.3% from the end of 2024[81] - Staff costs (including directors' emoluments, employee salaries, and contributions to retirement benefit schemes) were approximately RMB 38.3 million, an increase from RMB 32.9 million in the same period last year[81] - The Group provides employees with a competitive remuneration package, including medical and outbound insurance, and makes adequate and timely contributions to pension and MPF schemes[81] Other Information This section discloses the interests of directors, supervisors, and chief executives, as well as substantial shareholders, in the company's shares, confirms compliance with corporate governance practices and the code for securities transactions by directors, and states that no listed securities were purchased, redeemed, or sold during the period, also outlining the audit committee's responsibilities Directors', Supervisors' and Chief Executive's Interests and Short Positions in Shares and Underlying Shares As of June 30, 2025, Supervisor Ms Zhou Min held approximately 13.56% of the Company's issued unlisted shares through a trust, and Executive Director Mr Liu Ziyi beneficially owned approximately 0.37% of the Company's issued H shares Directors', Supervisors' and Chief Executive's Long Positions in Shares | Name | Capacity | Interests in Unlisted Shares (thousand shares) | Interests in H Shares (thousand shares) | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | :--- | | Ms Zhou Min | Beneficiary of a trust | 205,414 | – | 13.56% | | Mr Liu Ziyi | Beneficial owner | – | 3,000 | 0.20% | Rights of Directors and Supervisors to Acquire Shares During the period, no rights to acquire benefits by way of acquisition of shares in the Company were granted to or exercised by the directors and supervisors or their respective spouses or minor children - At no time during the period were any rights to acquire benefits by way of acquisition of shares in the Company granted to or exercised by the directors and supervisors or their respective spouses or minor children[84] Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares and Underlying Shares As of June 30, 2025, several substantial shareholders and other persons held significant interests in the Company's issued share capital, including Peking University and its associated entities, Shenzhen Yingtai Industrial Investment Co Ltd and its associated entities, Zhai Yong and his associated entities, Heng Huat Investments Limited and its associated entities, Mongolia Energy Corporation Limited and its associated entities, and Huang Taomei and her associated entities Substantial Shareholders' and Other Persons' Long Positions in Shares | Shareholder Name | Capacity | Interests in Unlisted Shares (thousand shares) | Interests in H Shares (thousand shares) | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | :--- | | Peking University | Interest of controlled corporation | 85,000 | – | 5.61% | | Shenzhen Yingtai Industrial Investment Co Ltd | Beneficial owner | 115,000 | – | 7.59% | | Zhai Yong | Interest of controlled corporation | 130,000 | – | 8.58% | | Heng Huat Investments Limited | Interest of controlled corporation | 205,414 | – | 13.56% | | Mongolia Energy Corporation Limited | Interest of controlled corporation | 84,586 | – | 5.58% | | Asia Development Capital (HK) Limited | Beneficial owner | – | 126,214 | 8.33% | Competing Interests As of June 30, 2025, no directors, supervisors, or their respective associates had any interests in businesses that compete or are likely to compete with the Group's businesses - No directors and supervisors and their respective associates had any interests in businesses that compete or are likely to compete with the Group's businesses[90] Corporate Governance Practices The Board believes that the Company has complied with all code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the GEM Listing Rules for the six months ended June 30, 2025 - The Company has complied with all code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the GEM Listing Rules[92] Purchase, Redemption or Sale of the Company's Listed Securities Neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities during the six months ended June 30, 2025 - Neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities during the six months ended June 30, 2025[93] Code of Conduct Regarding Securities Transactions by Directors Upon enquiry, all directors have complied with the code of conduct for securities transactions adopted by the Company and the required standards of dealing set out in the GEM Listing Rules for the six months ended June 30, 2025 - All directors have complied with the code of conduct for securities transactions adopted by the Company and the required standards of dealing set out in the GEM Listing Rules[94] Audit Committee The Audit Committee, comprising three independent non-executive directors with Mr Tang Xuan as chairman, convened a meeting to review and approve the content of the Group's interim results report for the six months ended June 30, 2025 - The Audit Committee comprises three independent non-executive directors, with Mr Tang Xuan as chairman[95] - The Audit Committee has reviewed the Group's interim results report for the six months ended June 30, 2025[95] Chairman of the Board and Date This announcement was issued by Ms Zheng Zhong, Chairman of the Board, on August 29, 2025 - The Chairman of the Board is Zheng Zhong[95] - The announcement date is August 29, 2025[96]