Financial Performance - Revenue for the six months ended June 30, 2025, was RMB 8,438.4 million, an increase of 11.9% compared to RMB 7,542.9 million in the same period of 2024[2] - Gross profit decreased by 18.6% to RMB 864.4 million from RMB 1,061.8 million year-on-year[2] - Profit for the period dropped by 71.3% to RMB 69.5 million, down from RMB 241.7 million in the previous year[2] - Earnings attributable to equity holders of the parent decreased by 61.7% to RMB 93.7 million, compared to RMB 244.8 million in the prior year[2] - Basic earnings per share fell to RMB 0.07 from RMB 0.18 year-on-year[2] - The pre-tax profit for the six months ended June 30, 2025, was RMB 93,741,000, a decrease of 61.5% compared to RMB 244,819,000 for the same period in 2024[25] - Net profit for the period was RMB 69.5 million, a significant decrease from RMB 241.7 million in the previous year[75] Revenue Breakdown - Revenue from the power solutions business was RMB 7,348,891, up 8.1% from RMB 6,798,509 in the previous year[15] - Revenue from the lead recycling business increased significantly to RMB 1,089,473, a rise of 46.3% compared to RMB 744,404 in 2024[15] - Revenue from mainland China accounted for RMB 4,764,820, representing a growth of 9.2% from RMB 4,363,895 in the prior year[16] - The network battery business accounted for 40.6% of total sales, generating revenue of RMB 3,428.8 million, a year-on-year increase of 9.4% driven by rising demand for UPS batteries in data centers[45] - The starting battery segment contributed 36.9% to total sales with revenue of RMB 3,115.3 million, reflecting a 9.6% increase due to higher automotive production, particularly in emerging markets[46] - The power battery business represented 7.4% of total sales, with revenue of RMB 621.8 million, down 9.5% year-on-year due to weak demand in the mainland China market[47] - Sales revenue in mainland China rose by 9.2% to RMB 4,764.8 million, accounting for 56.5% of total revenue[61] Assets and Liabilities - Total assets as of June 30, 2025, amounted to RMB 11,743.4 million, up from RMB 10,718.7 million at the end of 2024[7] - Current liabilities increased to RMB 9,086.2 million from RMB 8,027.8 million at the end of 2024[8] - Non-current liabilities decreased to RMB 1,294.7 million from RMB 1,477.4 million at the end of 2024[8] - Non-current assets totaled RMB 5,237,500, an increase from RMB 4,800,822 as of December 31, 2024[17] - The total amount of bank borrowings and advances as of June 30, 2025, was RMB 5,341,959,000, up from RMB 5,121,531,000 as of December 31, 2024, marking an increase of about 4.3%[39] Cash Flow and Investments - Cash and cash equivalents decreased to RMB 653,539,000 as of June 30, 2025, down from RMB 743,975,000 as of December 31, 2024, reflecting a decline of about 12.1%[35] - The group’s cash and bank balances decreased to RMB 1,275,391,000 as of June 30, 2025, from RMB 1,406,003,000 as of December 31, 2024, a decline of approximately 9.3%[35] - The group had capital commitments totaling RMB 314,726,000 as of June 30, 2025, compared to RMB 210,204,000 as of December 31, 2024, representing a significant increase of approximately 49.7%[40] Research and Development - Research and development costs were RMB 150.1 million, down from RMB 181.5 million in the previous year[4] - Research and development expenses decreased by 17.3% to RMB 150.1 million, as most of the expenses related to new product development were capitalized during the period[70] - The company is committed to increasing R&D investment to develop a diversified product matrix centered on lithium battery technology, including lead-carbon and sodium-ion batteries[54] Corporate Governance and Management - The company is committed to maintaining high standards of corporate governance, having complied with most of the corporate governance code provisions, except for the absence of the chairman at the annual general meeting due to other commitments[86] - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited financial statements and discussed accounting principles and internal controls with management[88] - The board expressed gratitude to shareholders, customers, suppliers, and employees for their continued support[90] Market and Strategic Focus - The company aims to enhance its core competitiveness in energy storage and power solutions, focusing on high-performance communication networks and robust data processing capabilities[50] - The company plans to strategically increase its focus on high-end lead-acid battery business for data centers and telecommunications to drive sustainable growth[51] - The after-sales channel market is identified as a key opportunity for growth, emphasizing the importance of full lifecycle service and optimizing supply chain responsiveness[52] - The company is optimizing its global supply chain management through SAP to enhance local operational capabilities in North America[55] - A new production base in Mexico is expected to start operations in Q4 2023 to enhance service capabilities for North American customers[55] - The company plans to spin off its subsidiary Leoch Energy Inc. for a separate listing in the U.S. by February 2025, aiming to enhance the market value of both the spun-off and retained groups[57] Other Financial Metrics - The total financial costs decreased to RMB 153,745,000 in 2025 from RMB 160,085,000 in 2024, reflecting a reduction of 4.3%[23] - The income tax expense for the period was RMB 47,059,000, which is an increase of 93.5% compared to RMB 24,302,000 in 2024[24] - The company did not declare an interim dividend for the current period, compared to a dividend of 4 HK cents per share in the previous year[2] - The company did not engage in any significant acquisitions or disposals during the period[83] - The company and its subsidiaries did not purchase, sell, or redeem any listed securities during the period, and held no treasury shares as of June 30, 2025[89]
理士国际(00842) - 2025 - 中期业绩