中国新华教育(02779) - 2025 - 中期业绩

Summary The company's revenue and gross profit saw slight increases, while profit for the period and adjusted net profit experienced double-digit growth | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 362,551 | 355,716 | 1.9 | | Gross Profit | 236,762 | 235,921 | 0.4 | | Profit for the Period | 256,334 | 213,119 | 20.3 | | Adjusted Net Profit | 241,516 | 224,779 | 7.4 | Consolidated Statement of Profit or Loss and Other Comprehensive Income This statement details the group's financial performance, showing revenue, costs, and various profit metrics for the reporting periods | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 362,551 | 355,716 | | Cost of Sales | (125,789) | (119,795) | | Gross Profit | 236,762 | 235,921 | | Other Income | 48,267 | 24,057 | | Selling and Distribution Costs | (709) | (1,078) | | Administrative Expenses | (16,608) | (36,661) | | Operating Profit | 267,712 | 222,239 | | Finance Costs | (6,407) | (6,375) | | Profit Before Tax | 261,305 | 215,864 | | Income Tax | (4,971) | (2,745) | | Profit for the Period | 256,334 | 213,119 | | Total Comprehensive Income for the Period | 247,628 | 217,658 | | Basic and Diluted Earnings Per Share (RMB cents) | 15.9 | 13.2 | Consolidated Statement of Financial Position This statement presents the group's assets, liabilities, and equity as of the reporting dates, highlighting changes in financial position | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Non-current Assets | 3,855,379 | 3,928,626 | | Current Assets | 865,423 | 920,120 | | Current Liabilities | 213,327 | 576,581 | | Net Current Assets | 652,096 | 343,539 | | Total Assets Less Current Liabilities | 4,507,475 | 4,272,165 | | Non-current Liabilities | 537,800 | 551,829 | | Net Assets | 3,969,675 | 3,720,336 | | Share Capital | 12,952 | 12,952 | | Reserves | 3,956,723 | 3,707,384 | | Total Equity | 3,969,675 | 3,720,336 | Notes to the Unaudited Interim Financial Report This section provides supplementary information on the interim financial report's basis of preparation, accounting policy changes, revenue, expenses, and balance sheet items 1 Basis of Preparation The interim financial report is prepared in accordance with HKEX Listing Rules and IAS 34, and has been reviewed by KPMG - The report is prepared in accordance with International Accounting Standard 34, and has been reviewed by KPMG[8][9] 2 Changes in Accounting Policies The group adopted amendments to IAS 21, "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability," with no material impact on this interim report - The group applied the amendments to International Accounting Standard 21, but they had no material impact on the interim financial report[10] 3 Revenue and Segment Reporting Group revenue, primarily from tuition and boarding fees, totaled RMB 362.55 million, entirely from China, with education services as the sole operating segment Revenue Sources | Revenue Source | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Tuition Fees | 335,862 | 328,607 | | Boarding Fees | 26,689 | 27,109 | | Total | 362,551 | 355,716 | - All group revenue and non-current assets are located in China, with education services as the sole operating segment[13][14] 4 Other Income Other income significantly increased by 100.4% to RMB 48.267 million, driven by higher rental, property management, service, and financial asset interest income, along with operating surpluses from Anhui and Jiangsu schools Other Income Items | Other Income Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Rental and Property Management Income | 14,951 | 12,345 | | Service Income | 11,941 | 7,270 | | Government Grants | 395 | 550 | | Interest Income from Financial Assets Measured at Amortized Cost | 10,835 | 7,067 | | Operating Surplus/(Deficit) from Anhui and Jiangsu Schools | 10,167 | (3,123) | | Others | (22) | (52) | | Total | 48,267 | 24,057 | 5 Profit Before Tax Profit before tax is primarily influenced by finance costs, staff costs, and other items such as depreciation, amortization, and net exchange gains or losses - Profit before tax is net of finance costs, staff costs, and other operating expenses[16][18] 5(a) Finance Costs Finance costs, mainly interest expenses on loans and borrowings, amounted to RMB 6.407 million, remaining largely consistent with the prior period Finance Cost Items | Finance Cost Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest Expense on Loans and Borrowings | 6,407 | 6,375 | 5(b) Staff Costs Total staff costs increased by 5.3% to RMB 93.175 million, comprising salaries, wages, other benefits, defined contribution retirement plan contributions, and equity-settled share-based payment expenses Staff Cost Items | Staff Cost Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Salaries, Wages and Other Benefits | 84,620 | 78,645 | | Defined Contribution Retirement Plan Contributions | 6,844 | 5,714 | | Equity-settled Share-based Payment Expenses | 1,711 | 4,102 | | Total | 93,175 | 88,461 | 5(c) Other Items Other items decreased significantly by 51.8% to RMB 16.965 million, primarily due to a net exchange gain reversing a prior-period loss, offsetting increased depreciation and amortization Other Items | Other Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Depreciation of Property, Plant and Equipment | 30,057 | 24,281 | | Amortization of Intangible Assets | 1,159 | 1,127 | | Depreciation of Right-of-use Assets | 1,278 | 1,278 | | Net Exchange (Gain)/Loss | (16,529) | 7,558 | | Auditor's Remuneration | 1,000 | 1,000 | | Total | 16,965 | 35,244 | 6 Income Tax Income tax expense increased by 85.2% to RMB 4.971 million, mainly due to higher taxable profit in China, with potential future tax implications for academic education services Income Tax Items | Income Tax Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Provision for China Income Tax for the Period | 4,971 | 2,745 | - The group's schools currently do not pay income tax on academic education service revenue, but this may change due to future policy updates[19][21] 7 Earnings Per Share Basic and diluted earnings per share for the six months ended June 30, 2025, were RMB 15.9 cents, up from RMB 13.2 cents, driven by increased profit for the period Earnings Per Share (RMB cents) | Earnings Per Share (RMB cents) | 2025 | 2024 | | :--- | :--- | :--- | | Basic and Diluted | 15.9 | 13.2 | - Diluted earnings per share are the same as basic earnings per share due to the anti-dilutive effect of share options during the reporting period[20] 8 Other Non-current Assets Other non-current assets, totaling RMB 2.929 billion, primarily consist of investment prepayments and advances to Anhui and Jiangsu schools, showing a slight increase Other Non-current Asset Items | Other Non-current Asset Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Investment Prepayments | 660,000 | 660,000 | | Advances to Anhui and Jiangsu Schools | 2,269,737 | 2,230,700 | | Total | 2,929,737 | 2,890,700 | - Investment prepayments represent the first installment for the acquisition of Jiangsu School, and advances are for campus construction, both unsecured and interest-free[22] 9 Trade Receivables Trade receivables decreased to RMB 1.150 million from RMB 2.137 million at the end of 2024, with no provision for doubtful debts Trade Receivables | Trade Receivables | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within One Year | 1,150 | 2,137 | 10 Prepayments, Deposits and Other Receivables Prepayments, deposits, and other receivables increased to RMB 247.941 million from RMB 228.101 million, mainly due to an increase in the balance due from Jiangsu School Prepayments, Deposits and Other Receivables | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Prepayments and Deposits | 202,530 | 201,838 | | Other Receivables | 45,411 | 26,263 | | Total | 247,941 | 228,101 | - Prepayments and deposits primarily include a balance of RMB 200 million due from Jiangsu School[23] 11 Long-term Bank Deposits, Cash and Bank Balances Long-term bank deposits, cash, and bank balances decreased to RMB 856.332 million from RMB 1.019 billion, with bank deposit interest rates ranging from 1.85% to 3.31% Long-term Bank Deposits, Cash and Bank Balances | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Long-term Bank Deposits | 240,000 | 330,000 | | Bank Deposits | 476,100 | 548,100 | | Cash and Cash Equivalents | 140,232 | 141,782 | | Total | 856,332 | 1,019,882 | - Bank deposit annual interest rates range from 1.85% to 3.31% (December 31, 2024: 1.45% to 3.55%)[24] 12 Loans and Borrowings Total loans and borrowings slightly decreased to RMB 589.410 million from RMB 601.849 million, comprising unsecured bank loans and loans from related parties Loans and Borrowings | Loan Type | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Unsecured Bank Loans (within one year or on demand) | 51,610 | 50,020 | | Unsecured Bank Loans (after one year but within two years) | 56,290 | 62,880 | | Related Party Loans (after one year but within two years) | 216,132 | – | | Related Party Loans (after two years but within five years) | 169,623 | 293,555 | | Related Party Loans (after five years) | 95,755 | 195,394 | | Total | 589,410 | 601,849 | - Unsecured bank loans bear interest at an annual rate of 2.70%, while related party loans bear interest at an annual rate of 2.00%[25][26] 13 Contract Liabilities Contract liabilities significantly decreased to RMB 10.987 million, primarily due to the recognition of tuition and boarding fees as revenue Contract Liabilities | Contract Liability Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Tuition Fees | 2,061 | 327,088 | | Boarding Fees | 8,926 | 34,957 | | Total | 10,987 | 362,045 | 14 Other Payables Other payables decreased to RMB 141.744 million from RMB 152.114 million, including amounts due to suppliers, accrued staff costs, and accrued interest Other Payables | Other Payable Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Amounts Due to Suppliers | 67,664 | 62,055 | | Miscellaneous Expenses Collected from Students | 6,635 | 6,643 | | Accrued Staff Costs | 19,802 | 25,381 | | Accrued Expenses | 4,986 | 4,274 | | Accrued Interest | 28,008 | 23,535 | | Others | 14,649 | 30,226 | | Total | 141,744 | 152,114 | - All other payables are expected to be settled within one year[28] 15 Share Capital, Reserves and Dividends This section covers interim dividend policy, prior-year approved dividends, changes in share option schemes, and the group's capital management strategy aimed at ensuring going concern and shareholder returns - The Board does not recommend the payment of an interim dividend for the reporting period[29] 15(a) Dividends Payable to Equity Shareholders of the Company Attributable to the Interim Period The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend paying an interim dividend for the reporting period[29] 15(b) Dividends Approved in Respect of the Previous Financial Year Attributable to Equity Shareholders of the Company in the Interim Period No final dividend for the previous financial year was approved for the six months ended June 30, 2025, compared to HKD 6.32 cents per share in the prior period Dividend (Per Ordinary Share) | Dividend (Per Ordinary Share) | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Final Dividend for Previous Financial Year (HK cents) | 0 | 6.32 | | Corresponding Amount | – | 92,609 | 15(c) Equity-settled Share-based Transactions No share options were exercised during the period, while 21.6 million options vested and 3 million expired, leaving 134.8 million outstanding as of June 30, 2025 - No share options were exercised during the reporting period, while 21.6 million share options vested and 3 million expired[32] - As of June 30, 2025, the company had 134.8 million outstanding share options[32] 15(d) Capital Management The group manages its capital structure using the gearing ratio to ensure its ability to continue as a going concern and maximize shareholder returns - The group monitors its capital structure using the gearing ratio, aiming to ensure its ability to continue as a going concern and generate returns for shareholders[33] Business Overview China Xinhua Education Group Limited is a leading private higher education institution in the Yangtze River Delta, providing quality applied academic and vocational education services - China Xinhua Education Group Limited is a leading private higher education institution in the Yangtze River Delta region, committed to providing high-quality applied academic and secondary vocational education services[35][36] - The group actively responds to the national strategy of building a strong education nation, continuously improving educational quality, with graduate employment rates generally higher than the provincial average[35][36] Business Review and Operational Update During the reporting period, the group maintained stable student enrollment, increased continuing education students, and made significant progress in professional development, talent acquisition, collaborations, and campus investments Student Enrollment For the 2024/25 academic year, full-time student enrollment was approximately 43,014, a 1.48% decrease, while continuing education enrollment reached 20,149, an increase of 1.88% Student Enrollment | Student Type | 2024/25 Academic Year (Number of Students) | Year-on-Year Change (%) | | :--- | :--- | :--- | | Full-time Students | 43,014 | -1.48 | | Continuing Education Students | 20,149 | 1.88 | Operational Updates and Highlights The group achieved notable progress in professional construction, talent development, exchange and cooperation, and campus infrastructure, enhancing its educational and social service capabilities - The group boasts 4 national-level first-class undergraduate programs and 14 provincial-level first-class undergraduate programs, with student awards in provincial-level and above academic competitions increasing by 206.7%[38] - Implementing a "talent-driven education" strategy, the group has cultivated and introduced over 340 doctoral teachers, and Xinhua College was approved as an Anhui Province postdoctoral research workstation[38] - Actively promoting industry-university and local government cooperation, the group established a School of Music, co-built a Smart Modern Industry College, and expanded international exchanges, launching undergraduate preparatory program enrollment with the University of Malaya[38] - Continuous investment in education has improved campus infrastructure, with new laboratories, upgraded smart classrooms, and the development of AI intelligent agents for smart student affairs and digital counselors[40] - The group actively contributes to social services by adding an off-campus teaching site for Northwestern Polytechnical University's continuing higher education and introducing a new drone application technology program[40] Future Outlook The group will align with the national "Education Powerhouse" strategy, reform talent cultivation, strengthen disciplines, optimize campus environments, build a smart education ecosystem, and deepen cooperation to enhance brand influence - The group will implement the "Outline for Building a Strong Education Nation" to cultivate high-quality applied talents[39] - It will continuously strengthen dynamic adjustment of disciplines, cultivate more national-level first-class courses and programs, and enhance students' comprehensive quality and employment competitiveness[41] - The "talent-driven education" strategy will continue to be implemented to cultivate a professional and high-quality teaching team[42] - Focusing on smart campus construction, the group will strengthen data platforms and large education models to promote the digital and intelligent transformation of education[43] - Deepening industry-university and local government cooperation, expanding industry-academia-research collaboration, and increasing international student enrollment under the "Belt and Road" initiative will enhance its international brand[44] 1. Implement Policy Directives to Support the Construction of a Strong Education Nation The group will actively respond to the "Outline for Building a Strong Education Nation," focusing on moral education to cultivate high-quality applied talents with strong practical skills, international perspectives, and innovative spirit - The group will implement the "Outline for Building a Strong Education Nation" to cultivate socialist builders and successors who are well-rounded in moral, intellectual, physical, aesthetic, and labor education[39] 2. Focus on Talent Cultivation, Provide Quality Resources and Services The group will align with industry transformation needs, continuously adjust disciplines, cultivate first-class courses and programs, deepen applied talent cultivation reforms, and optimize campus facilities - Continuously strengthen dynamic adjustment of disciplines, cultivating more national-level first-class courses and first-class programs[41] - Deepen reform and innovation in applied talent cultivation models, enhancing students' comprehensive quality and employment competitiveness[41] 3. Focus on Capability Building, Effectively Leverage the Role of Talent-Driven Education The group will continue to implement its "Talent-Driven Education" strategy, prioritizing talent development through tiered training to build a professional and high-quality teaching team - Continuously implement the "talent-driven education" development strategy, focusing on cultivating teachers' comprehensive abilities in teaching, research, and practice[42] 4. Promote Technology Application, Build a New Smart Education Ecosystem The group will focus on smart campus construction, strengthen data platforms and large education models, promote digital and intelligent transformation of curriculum and teaching, and expand AI applications in education - Strengthen data platform and large education model construction, promoting the digital and intelligent upgrade of curriculum, textbooks, and teaching systems[43] - Increase the application of artificial intelligence in professional construction, teaching reform, and quality assessment to enhance talent cultivation efficiency through digital intelligence in education[43] 5. Strengthen Cooperative Education, Enhance Brand Influence The group will deepen industry-university and local government collaborations, achieve breakthroughs in industry-academia-research, strengthen core technology research, and expand international student enrollment under the "Belt and Road" initiative - Deepen industry-university and local government cooperation models, achieving new breakthroughs in industry-academia-research collaboration, such as the construction of modern industry colleges and future technology institutes[44] - Expand international student enrollment under the "Belt and Road" initiative, actively apply for Sino-foreign cooperative education programs, and continuously build an international brand[44] Financial Review During the period, revenue slightly increased, other income significantly rose, and both cost of sales and gross profit grew, while selling and distribution and administrative expenses decreased, leading to double-digit growth in profit for the period and adjusted net profit - Revenue slightly increased by 1.9%, other income significantly grew by 100.4%, and profit for the period increased by 20.3%[45][46][55] - Selling and distribution costs decreased by 36.4%, and administrative expenses decreased by 54.8%, primarily due to reduced student recruitment expenses, depreciation, amortization, and exchange losses[49][50] Revenue Group revenue slightly increased by 1.9% to RMB 362.6 million, primarily driven by an increase in average tuition fees Revenue | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 362,600 | 355,700 | 1.9 | - Revenue growth was primarily due to an increase in average tuition fees[45] Other Income Other income significantly increased by 100.4% to RMB 48.3 million, primarily due to improved operations Other Income | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Other Income | 48,300 | 24,100 | 100.4 | - The significant increase in other income was primarily due to improved operations[46] Cost of Sales Cost of sales increased by 5.0% to RMB 125.8 million, mainly due to continuous increases in teaching investment Cost of Sales | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Cost of Sales | 125,800 | 119,800 | 5.0 | - The increase in cost of sales was mainly due to continuous increases in teaching investment[47] Gross Profit Gross profit slightly increased by 0.4% to RMB 236.8 million, primarily benefiting from improved management and economies of scale from resource integration Gross Profit | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 236,800 | 235,900 | 0.4 | - Gross profit growth primarily benefited from improved management and economies of scale resulting from resource integration[48] Selling and Distribution Costs Selling and distribution costs decreased by 36.4% to RMB 0.7 million, mainly due to reduced student recruitment expenses, depreciation, and amortization Selling and Distribution Costs | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Selling and Distribution Costs | 700 | 1,100 | -36.4 | - The decrease in selling and distribution costs was mainly due to reduced student recruitment expenses, depreciation, and amortization[49] Administrative Expenses Administrative expenses decreased by 54.8% to RMB 16.6 million, primarily due to a reduction in exchange losses Administrative Expenses | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 16,600 | 36,700 | -54.8 | - The decrease in administrative expenses was primarily due to a reduction in exchange losses[50] Finance Costs Finance costs for the period were RMB 6.4 million, showing no significant difference compared to the same period last year Finance Costs | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Finance Costs | 6,400 | 6,400 | 0.0 | Profit Before Tax Profit before income tax increased by 21.0% to RMB 261.3 million, primarily due to higher taxable profit in China Profit Before Tax | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Profit Before Tax | 261,300 | 215,900 | 21.0 | - The increase in profit before tax was primarily due to higher taxable profit in China[53] Income Tax Income tax increased by 85.2% to RMB 5.0 million, primarily due to higher taxable income in China Income Tax | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Income Tax | 5,000 | 2,700 | 85.2 | - The increase in income tax was primarily due to higher taxable income in China[54] Profit for the Period Profit for the period increased by 20.3% to RMB 256.3 million, resulting from the combined impact of various financial factors Profit for the Period | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Profit for the Period | 256,300 | 213,100 | 20.3 | Adjusted Net Profit Adjusted net profit increased by 7.4% to RMB 241.5 million, a key supplementary measure of operating performance that excludes exchange gains/losses and share-based payment expenses Adjusted Net Profit | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Profit for the Period | 256,334 | 213,119 | 20.3 | | Add: Net Exchange (Gain)/Loss | (16,529) | 7,558 | - | | Add: Share-based Payment Expenses | 1,711 | 4,102 | - | | Adjusted Net Profit | 241,516 | 224,779 | 7.4 | - Adjusted net profit, which excludes exchange gains/losses and share-based payment expenses, is a key supplementary measure of the group's operating performance[56] Working Capital and Capital Resources The group primarily funds its operations through cash and cash equivalents generated from operating activities, with total long-term bank deposits, cash, and bank balances of RMB 856.3 million as of June 30, 2025 - The group primarily funds its operations through cash and cash equivalents generated from operating activities[58] Long-term Bank Deposits, Cash and Bank Balances | Indicator | June 30, 2025 (RMB thousands) | | :--- | :--- | | Long-term Bank Deposits, Cash and Bank Balances | 856,300 | Net Current Assets Net current assets increased by 89.8% to RMB 652.1 million, primarily due to changes in contract liabilities, other payables, and accrued expenses exceeding the decrease in current assets Net Current Assets | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Net Current Assets | 652,100 | 343,500 | 89.8 | - The increase in net current assets was primarily due to changes in contract liabilities, other payables, and accrued expenses exceeding the decrease in current assets[59] Capital Expenditure Capital expenditure for the period significantly decreased to RMB 49.2 million, primarily for building construction, school facilities, and equipment, funded mainly by operating cash flow Capital Expenditure | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Capital Expenditure | 49,200 | 101,700 | - Capital expenditure was primarily used for the construction of buildings and school facilities, as well as the purchase of equipment and software, mainly funded by cash generated from operating activities[60] Bank Loans and Other Borrowings As of June 30, 2025, the group's total bank loans and borrowings from related parties amounted to RMB 589.4 million Bank Loans and Other Borrowings | Indicator | June 30, 2025 (RMB thousands) | | :--- | :--- | | Bank Loans and Borrowings from Related Parties | 589,400 | Contingent Liabilities, Guarantees and Litigation As of June 30, 2025, the group had no unrecorded material contingent liabilities, guarantees, or litigation against it - As of the end of the reporting period, the group had no unrecorded material contingent liabilities, guarantees, or litigation[62] Gearing Ratio The group's gearing ratio decreased from 23.3% to 15.9%, primarily due to a greater reduction in total liabilities than in total assets Gearing Ratio | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Liabilities (RMB thousands) | 751,127 | 1,128,410 | | Total Assets (RMB thousands) | 4,720,802 | 4,848,746 | | Gearing Ratio (%) | 15.9 | 23.3 | - The decrease in the gearing ratio was primarily due to a greater reduction in total liabilities than in total assets[63] Future Plans for Material Investments and Capital Assets As of June 30, 2025, and up to the date of this announcement, the group had no other material investment and capital asset plans - As of the end of the reporting period, the group had no other material investment and capital asset plans[64] Material Acquisitions and Disposals of Subsidiaries and Associates Except as disclosed in this announcement, there were no material acquisitions or disposals of subsidiaries and associates during the reporting period - During the reporting period, the company had no material acquisitions or disposals of subsidiaries and associates[65] Material Investments Held by the Group Except as disclosed in this announcement, the group held no other material investments during the reporting period - During the reporting period, the group held no other material investments[66] Foreign Exchange Risk Management The group's functional currency is RMB, with most income and expenses denominated in RMB, and management continuously monitors foreign exchange risk - The group's functional currency is RMB, with most income and expenses denominated in RMB, and management continuously monitors foreign exchange risk[67] Pledge of Assets As of June 30, 2025, the group had not pledged any assets - As of the end of the reporting period, the group had not pledged any assets[68] Human Resources As of June 30, 2025, the group had approximately 3,035 employees, a 21.3% increase, all located in China and participating in local government social security plans Number of Employees | Indicator | June 30, 2025 (Number of Persons) | June 30, 2024 (Number of Persons) | Change (%) | | :--- | :--- | :--- | :--- | | Number of Employees | 3,035 | 2,501 | 21.3 | - The group maintains good working relationships with its employees, with no significant labor disputes during the reporting period[69] Off-balance Sheet Commitments and Arrangements As of June 30, 2025, the group had not entered into any off-balance sheet transactions - As of the end of the reporting period, the group had not entered into any off-balance sheet transactions[70] Events After the Reporting Period No events occurred after June 30, 2025, up to the date of this announcement, that would have a material impact on the group - No events occurred after the reporting period that would have a material impact on the group[71] Interim Dividend The Board does not recommend the payment of an interim dividend for the reporting period - The Board does not recommend paying an interim dividend for the reporting period[72] Purchase, Sale or Redemption of the Company's Listed Securities During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities, and there were no treasury shares - During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities[73] - As of June 30, 2025, the company held no treasury shares[74] Corporate Governance and Publication The group is committed to maintaining high standards of corporate governance, adhering to the Corporate Governance Code and the Model Code for Securities Transactions by Directors, and has reviewed and discussed its interim results - The group is committed to maintaining high standards of corporate governance and complies with the Corporate Governance Code[76] - The Audit Committee has reviewed the interim results and confirmed compliance with applicable accounting standards, laws, and regulations[75] Audit Committee Review of Interim Results The Audit Committee, with management and KPMG, reviewed the interim results, confirming compliance with applicable accounting standards, laws, and regulations - The Audit Committee, together with management and independent auditor KPMG, reviewed the interim results[75] - The Audit Committee concluded that the interim results comply with applicable accounting standards, laws, and regulations, and are appropriately disclosed[75] Corporate Governance Code The group adopted and complied with all applicable code provisions of the Corporate Governance Code during the reporting period, appointing new Nomination Committee members in response to revisions - The group has complied with all applicable code provisions under the Corporate Governance Code during the reporting period[76] - In response to the revised Corporate Governance Code, the Board has appointed new members to the Nomination Committee[76] Standard Code for Securities Transactions by Directors The company adopted the Model Code as the standard for directors' securities transactions, and all directors confirmed compliance during the reporting period - All directors confirmed compliance with the Standard Code for Securities Transactions by Directors during the reporting period[77] Publication of Interim Results and Interim Report This announcement has been published on the HKEX and company websites, with the interim report to be issued and sent to shareholders requesting printed copies - This announcement has been published on the websites of Hong Kong Exchanges and Clearing Limited and the company[78] Definitions This section provides definitions for key terms and abbreviations used throughout the report to ensure clear understanding of the content - This section provides definitions for key terms and abbreviations used in the report to ensure clear understanding[79][82]