Financial Performance - For the six months ended June 30, 2025, the turnover was RMB 2,380,758, a decrease of 2.46% compared to RMB 2,440,776 in 2024[5]. - The company reported a loss of RMB 18,870 for the period, a significant decline of 439.6% from a profit of RMB 5,556 in the previous year[5]. - Loss attributable to owners of the company was RMB 14,468, down 361.9% from a profit of RMB 5,524 in 2024[5]. - Basic and diluted loss per share was RMB (1.33), compared to earnings of RMB 0.51 per share in the same period last year, reflecting a decrease of 360.8%[5]. - The Group recorded a consolidated turnover of approximately RMB2,380.8 million, a decrease of approximately 2.5% compared to the same period in 2024[39]. - The Group reported a loss attributable to owners of approximately RMB14.5 million, compared to a profit of RMB5.5 million in 2024[39]. - The Group recorded a net loss attributable to owners of approximately RMB14.5 million for the period, a decrease of 361.9% compared to a profit of RMB5.5 million in 2024[68][70]. - Total comprehensive income for the period was RMB (17,716), down from RMB 3,424 in the previous year[116]. - The company reported a total comprehensive income for the period of RMB (13,314,000) for the six months ended June 30, 2025, compared to RMB 2,807,000 for the same period in 2024[124]. Revenue Sources - During the six-month period from January 1, 2025, to June 30, 2025, over 90% of the Group's revenue was derived from the ODM business, primarily from smartphone and tablet segments[29]. - Approximately 63% of the Group's ODM sales revenue during the Review Period came from mobile phone batteries, while 21% came from tablet batteries[29]. - The ODM business generated a turnover of approximately RMB2,249.3 million, accounting for approximately 94.5% of the Group's consolidated turnover[49]. - Sales from mobile phone batteries amounted to approximately RMB1,423.8 million, accounting for about 59.8% of the Group's consolidated turnover[53]. - The aggregate sales of new power supply products contributed approximately RMB103.3 million, representing approximately 4.6% of the turnover of the ODM business[43]. Market Trends and Challenges - The global smartphone market faced challenges, with a 1.5% year-over-year increase in shipments in Q1 2025 and a 1.0% increase in Q2 2025, but a decline in China's smartphone market in Q2 2025[24]. - The rise of AI-enabled smartphones is expected to drive demand for high-performance lithium-ion batteries, which are crucial for innovation in the mobile phone industry[26]. - The smartphone market is anticipated to remain a key platform for personal entertainment and social networking, with no emerging technology expected to replace smartphones in the near future[32]. - The competition in niche segments such as foldable devices and advanced camera technology is expected to intensify, while 5G devices will continue to drive growth, particularly in emerging markets[24]. Cost and Profitability - Gross profit for the Group was approximately RMB178.4 million, an increase of approximately 14.2% compared to the same period in 2024[48]. - The overall gross profit margin improved to 7.5%, up from 6.4% in 2024, due to reduced sales costs through optimized production processes[58]. - EBITDA decreased by approximately 40.1% to RMB58.3 million compared to RMB97.3 million in 2024[50]. - Administrative expenses increased by approximately 23.5% to RMB137.7 million, accounting for about 5.8% of the Group's consolidated turnover[61]. Cash Flow and Liquidity - Cash and cash equivalents decreased to approximately RMB148.7 million as of June 30, 2025, down from RMB333.0 million at December 31, 2024, primarily due to reduced cash flows from operating activities[72][75]. - The Group experienced a net cash outflow from operating activities of approximately RMB159.2 million for the six months ended June 30, 2025, compared to a net inflow of RMB20.1 million in 2024[72][75]. - The Group's current ratio remained stable at approximately 1.2 times as of June 30, 2025, with current assets of approximately RMB3,338.7 million and current liabilities of approximately RMB2,782.7 million[78][81]. - Net current assets increased by approximately 5.7% to RMB556.1 million as of June 30, 2025, compared to RMB525.9 million at December 31, 2024[84]. Employee and Operational Metrics - Employee costs for the six months ended June 30, 2025, totaled RMB204.6 million, compared to RMB192.6 million for the same period in 2024, reflecting an increase in employee costs[103]. - The Group had 2,465 full-time employees as of June 30, 2025, a decrease from 2,542 employees as of June 30, 2024[103]. Research and Development - The company is committed to investing in R&D for new technologies, particularly in industrial design and AI applications[35]. - Research and development costs for the six months ended June 30, 2025, were RMB53,101,000, an increase from RMB49,532,000 in 2024, reflecting a growth of approximately 3.2%[165]. Assets and Liabilities - The Group's total assets decreased to RMB1,070 million as of June 30, 2025, down from RMB1,087.8 million as of December 31, 2024, representing a decrease of approximately RMB17.7 million[90]. - Total non-current liabilities increased to RMB246,438,000 as of June 30, 2025, up from RMB224,521,000 at December 31, 2024, representing a growth of 9.7%[121]. - Total trade and notes payables amounted to RMB1,805,755,000 as of June 30, 2025, down from RMB1,961,850,000, indicating a decrease of about 8.0%[191]. Regulatory and Compliance - The interim financial information has been prepared in accordance with IAS 34 and is presented in Chinese Renminbi (RMB) for the six months ended June 30, 2025[135][139]. - The adoption of new or amended IFRS Accounting Standards effective from January 1, 2025 did not have any significant impact on the Group's accounting policies[140][142].
锐信控股(01399) - 2025 - 中期业绩