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硬蛋创新(00400) - 2025 - 中期业绩
INGDANINGDAN(HK:00400)2025-08-29 14:48

Interim Results Overview Financial Highlights IngDan Innovation reported unaudited consolidated results for H1 2025, with revenue up 54.5% to RMB 6,676.5 million and profit up 12.4% to RMB 190.0 million | Metric | June 30, 2025 (RMB million) | June 30, 2024 (RMB million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 6,676.5 | 4,321.4 | 54.5% | | Gross Profit | 585.9 | 457.6 | 28.0% | | Operating Profit | 275.6 | 228.2 | 20.8% | | Profit for the Period | 190.0 | 169.1 | 12.4% | | Profit Attributable to Equity Holders of the Company | 132.1 | 112.7 | 17.2% | | Basic Earnings Per Share (RMB) | 0.086 | 0.082 | 4.9% | | Diluted Earnings Per Share (RMB) | 0.086 | 0.082 | 4.9% | Management Discussion and Analysis The Group, an AI chip application solution platform, achieved significant revenue and profit growth driven by AI computing demand, leveraging Comtech and IngDan platforms for end-to-end services and long-term strategic initiatives Overall Business and Financial Performance The Group, an AI chip application platform, saw revenue increase by 54.5%, gross profit by 28.0%, operating profit by 20.8%, and net profit by 12.4% due to rising AI computing demand - The Group is positioned as an AI chip-based application solution platform, with main businesses including Comtech Technology (chip industry technical services) and IngDan Technology (AIoT technical services)8 - Benefiting from increased demand for AI computing power and AI technology-related chips, revenue for the reporting period was approximately RMB 6,676.5 million, a year-on-year increase of approximately 54.5%8 - Gross profit was approximately RMB 585.9 million, an increase of approximately 28.0% year-on-year; operating profit was approximately RMB 275.6 million, an increase of approximately 20.8% year-on-year; and net profit after tax was approximately RMB 190.0 million, an increase of approximately 12.4% year-on-year8 Market Environment and Strategic Opportunities AI applications drive global chip market growth, particularly in data centers and edge AI, with the Group leveraging top AI chip resources and developing advanced solutions for robotics and autonomous driving - In H1 2025, the global chip market reached USD 346 billion, growing 18.9% year-on-year, with AI-related demand being a significant contributor9 - The global chip market size is projected to be revised upwards to USD 728 billion in 2025, a 15.4% year-on-year increase, and further grow by 9.9% to USD 800 billion in 20269 - The Group integrates top global AI chip resources, building a supply chain advantage with an AI computing hardware library covering mainstream domestic and international manufacturers10 - Mature application solutions covering cutting-edge fields such as robotics, autonomous driving, and low-altitude economy have been developed, providing "out-of-the-box" core technology modules to shorten customer R&D cycles10 - Internal operating systems deeply integrate AI technology, enhancing market promotion, customer acquisition, and supply chain management efficiency, achieving intelligent upgrades10 - A unique business closed-loop is established, strategically evolving from "chip trading" to "technology integration," offering efficient supply chain services, in-depth technical solutions, and customized products to strengthen customer stickiness11 Core Business Segments The Group's core business, Comtech Technology and IngDan Technology, provides AI computing supply chain solutions, distributes over 80 chip brands, and focuses on AI servers, new energy, and battery lifecycle management Comtech Technology Comtech Technology, a core AI computing supply chain supplier, distributes products from over 80 chip manufacturers, offers AI-driven solutions, and has applied for A-share IPO pre-listing guidance - Comtech Technology is a core supplier in the AI computing power supply chain, distributing products from over 80 core chip companies, including Nvidia, AMD-Xilinx, and Intel12 - It provides chip application technology solutions and supply chain management services, achieving intelligent and automated comprehensive solutions through self-developed AI technology, large models, and professional knowledge bases12 - It possesses multiple independent intellectual property rights, including an intelligent algorithm library, industry-specific large models, and an intelligent hardware design platform13 - Shenzhen Comtech Technology Co, Ltd (Shenzhen Comtech) has applied for pre-listing guidance for its proposed spin-off and A-share listing, which has been accepted for filing by the Shenzhen Regulatory Bureau of the China Securities Regulatory Commission14 IngDan Technology IngDan Technology focuses on AI servers with Huawei's Deep Seek, new energy solutions including two-wheeler battery swapping and lifecycle data platforms, and provides chip application training through its academy - IngDan Technology is strategically positioned in the AI server business, deeply collaborating with Huawei to launch the Deep Seek integrated machine, based on the Ascend 910 chip, serving the domestic AI computing power needs of universities, medical schools, and research institutions15 - It focuses on the new energy industry, developing two-wheeler battery swapping and cascade utilization, and building a full lifecycle data traceability and trusted asset management platform for lithium batteries15 - IngDan Industry Academy introduces leading global chip application technologies, providing technical services and talent training, having cultivated over 8,000 chip application engineers16 Future Outlook and Strategic Objectives The Group will pursue a "solution-driven innovation, transaction-driven value" strategy, evolving into a technology enabler by enhancing customer acquisition, driving value through infrastructure and services, leveraging data for a self-reinforcing ecosystem, expanding IngDan's revenue, and seeking strategic partnerships Solution-driven Innovation The Group will drive innovation by optimizing standardized solutions for broad market needs and deepening customized solutions for high-growth enterprises, balancing market reach and client depth to fuel growth - Continuously optimize "standardized solutions" to quickly respond to market demands and maintain competitive advantage18 - Deepen self-developed "customized solutions" to establish close, long-term partnerships with high-growth enterprises18 Transaction-driven Value The Group will enhance transaction conversion efficiency via "infrastructure + value-added services," accumulate data to optimize offerings, solidify its strategic shift to a technology integration platform, and ensure sustainable profitability and cash flow - Drive with a "infrastructure + value-added services" dual engine to improve the conversion efficiency from front-end solutions to actual transactions19 - Accumulate industry and customer data as strategic assets to aid product and service design optimization and enhance supply chain collaboration efficiency19 Data-driven Future The Group will leverage business expansion and data to create a self-reinforcing "ecosystem-data-creation-empowerment" loop, enabling bidirectional data empowerment for clients and manufacturers, establishing a strong competitive advantage - Core competitiveness lies in the systemic advantages brought by an efficient "customer acquisition-retention-conversion" closed-loop20 - Plans to deepen a self-reinforcing "ecosystem-data-creation-empowerment" loop, achieving bidirectional data empowerment to assist customers and provide feedback to original manufacturers20 - Accelerate expansion in the AI industry chain, with Comtech Technology enhancing chip application solution design and IngDan Technology accelerating AI product application implementation through "IngDan Cloud"21 Enhancing IngDan Technology's Revenue Streams IngDan Technology will focus on domestic computing power for research with Huawei Ascend, offering integrated solutions, expanding into enterprise markets, and developing new energy smart battery cloud services and an iPaaS platform for five smart hardware sectors - IngDan Technology will deeply cultivate domestic computing power demand in the research field, providing an integrated "hardware + software + service" closed-loop solution with high-performance adaptable hardware and exclusive domestic solutions, complemented by full-lifecycle technical maintenance22 - Leveraging the Huawei Ascend ecosystem as an entry point, it aims to capture short-term market opportunities, expand into the enterprise market in the medium term, and participate in joint R&D long-term22 - Continue to actively focus on developing new energy smart battery cloud business, with a key focus on two-wheeler battery cloud services23 - Build an iPaaS technology integration platform to become a core technology supplier for the AIoT "chip-device-cloud" industry chain, focusing on five major smart hardware sectors: smart cars, digital infrastructure, industrial internet, energy control, and mass consumption23 - Establish a "chip-device-cloud" industry closed-loop, with Comtech Technology serving upstream chip suppliers and IngDan Technology focusing on "device" and "cloud" technology integration support, providing customized solutions for emerging industries24 Fostering Electronic Manufacturing Ecosystem The Group plans to foster an open electronic manufacturing ecosystem, develop value-added services like supply chain finance and cloud computing, and monetize data to offer data-driven services for customer retention - Plans to foster an open, collaborative, and prosperous electronic manufacturing ecosystem to drive its own business growth25 - Plans to develop related businesses serving the electronic manufacturing value chain, such as supply chain finance, insurance, and cloud computing services, to expand platform value-added services25 - Plans to monetize collected customer and supplier data to provide data-driven services, including marketing planning, sales, and customized product design25 Enhancing Customer Loyalty and Purchase Volume The Group plans to enhance customer loyalty and purchase volume by using advanced market analysis for product recommendations, improving service and fulfillment, and providing robust online tools for new clients to boost repeat purchases and cross-selling - Utilize advanced market analysis tools to provide more efficient and suitable online and offline platforms, recommending products or developing customized new products through continuous data collection and analysis26 - Invest more resources to enhance customer service, order fulfillment, and delivery capabilities, improving service reliability and shortening customer response times27 - Provide new customers with powerful online tools, enterprise resource planning, and other supporting services to increase repeat purchase rates and facilitate cross-selling27 Advancing Strategic Partnerships and Acquisitions The Group plans to expand through strategic partnerships and acquisitions, targeting promising enterprises to optimize operations, broaden user and revenue bases, expand geographically, enhance offerings, improve technology, and strengthen talent, while seizing AI-driven market growth opportunities - Plans to expand business through strategic partnerships and acquisition activities, identifying promising enterprises for investment, collaboration, or acquisition28 - Objectives include optimizing business operations, broadening user and revenue bases, expanding geographical footprint, enhancing product and service portfolios, improving technological infrastructure, and strengthening the talent pool28 - Seek attractive cross-marketing and licensing opportunities to enhance sales capabilities and capture market growth driven by AI28 Detailed Financial Performance Income Statement Comparison For H1 2025, the Group's revenue surged 54.5% driven by AI chip demand, with operating profit and profit attributable to equity holders showing double-digit growth despite a lower gross margin, while operating and income tax expenses increased Revenue and Cost of Revenue The Group's revenue grew 54.5% to RMB 6,676.5 million, driven by AI chip demand and memory market recovery, with cost of revenue increasing 57.6% to RMB 6,090.6 million | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 6,676.5 | 4,321.4 | 54.5% | | Cost of Sales | (6,090.6) | (3,863.8) | 57.6% | - Revenue growth was primarily due to the increasing demand for chips in AI technology-related industries and the gradual recovery of certain markets, such as memory and storage module products31 Gross Profit and Margin Gross profit increased 28.0% to RMB 585.9 million, but gross margin declined to 8.8% from 10.6% due to a higher proportion of lower-margin sales to major customers | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Gross Profit | 585.9 | 457.6 | 28.0% | | Gross Margin | 8.8% | 10.6% | -1.8 percentage points | - The decrease in gross margin was mainly due to a change in customer mix, with revenue from major customers being relatively higher in H1 2025 compared to H1 2024, and sales to major customers typically having lower gross margins33 Other Income, Gains and Losses Other income increased 73.2% to RMB 14.2 million, mainly driven by a significant rise in government grants from RMB 0.8 million to RMB 4.7 million | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Other Income | 14.2 | 8.2 | 73.2% | | Government Grants | 4.7 | 0.8 | 487.5% | Operating Expenses Sales and distribution expenses rose 12.0% to RMB 106.8 million, R&D expenses increased 8.9% to RMB 47.5 million, and administrative and other operating expenses surged 72.6% to RMB 170.2 million due to business expansion and exchange losses | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Sales and Distribution Expenses | 106.8 | 95.4 | 12.0% | | R&D Expenses | 47.5 | 43.6 | 8.9% | | Administrative and Other Operating Expenses | 170.2 | 98.6 | 72.6% | - The significant increase in administrative and other operating expenses was mainly due to increased net exchange losses and other operating expenses such as insurance, office, and travel expenses resulting from business expansion37 Income Tax and Net Profit Income tax expense surged 201.1% to RMB 28.6 million, with the effective tax rate rising to 13.1% due to increased operating profit and a shift in profit contribution, while profit attributable to equity holders grew 17.2% to RMB 132.1 million | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Income Tax Expense | 28.6 | 9.5 | 201.1% | | Effective Tax Rate | 13.1% | 5.3% | 7.8 percentage points | | Profit Attributable to Equity Holders of the Company | 132.1 | 112.7 | 17.2% | - The increase in the effective tax rate was mainly due to a higher proportion of profit contributed by Hong Kong and Chinese subsidiaries relative to tax-exempt profit contributed by Chinese subsidiaries38 Earnings Per Share Basic and diluted earnings per share for H1 2025 both increased by 4.9% to RMB 0.086, up from RMB 0.082 in the prior year | Metric | H1 2025 (RMB) | H1 2024 (RMB) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share | 0.086 | 0.082 | 4.9% | | Diluted Earnings Per Share | 0.086 | 0.082 | 4.9% | Financial Position As of June 30, 2025, the Group reported RMB 9,260.0 million in current assets and RMB 6,881.8 million in current liabilities, with a current ratio of 1.35 and a net debt-to-equity ratio of 23.4%, while capital expenditure significantly increased Liquidity and Capital Resources As of June 30, 2025, current assets were RMB 9,260.0 million and current liabilities RMB 6,881.8 million, resulting in a current ratio of 1.35, a 4.3% decrease from year-end 2024 due to increased payables and bank loans | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Current Assets | 9,260.0 | 6,739.9 | 37.4% | | Current Liabilities | 6,881.8 | 4,781.1 | 44.0% | | Current Ratio | 1.35 | 1.41 | -4.3% | - The decrease in the current ratio was mainly due to an increase in trade and other payables and bank loans, partially offset by an increase in inventories, receivables, and cash and cash equivalents40 - As of December 31, 2024, certain investors had exercised their redemption rights under the subscription agreements41 Capital Expenditure Capital expenditure surged to RMB 15.9 million from RMB 0.6 million, primarily due to increased investment in plant and equipment and intangible assets for self-developed product R&D | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Capital Expenditure | 15.9 | 0.6 | 2550.0% | - The increase in capital expenditure was mainly due to a year-on-year increase in additions to plant and equipment, and an increase in intangible assets acquired for self-developed product R&D42 Net Debt to Equity Ratio As of June 30, 2025, the net debt-to-equity ratio decreased to 23.4% from 27.8%, driven by increased total equity from share issuance and profit, alongside higher cash and cash equivalents | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Net Debt to Equity Ratio | 23.4% | 27.8% | -4.4 percentage points | - The decrease in the net debt-to-equity ratio was mainly due to an increase in total equity resulting from the issuance of shares and increased profit during the reporting period, as well as an increase in cash and cash equivalents, partially offset by an increase in bank loans43 Significant Investments, Acquisitions and Disposals The Group made no significant investments or disposals during the period, but Shenzhen Comtech's proposed spin-off and A-share listing application, with the Group remaining its ultimate controlling shareholder, is expected to drive long-term growth - During the reporting period, the Group did not make any significant investments, acquisitions, or disposals4445 - Shenzhen Comtech's proposed spin-off and A-share listing application has been accepted for filing, which is expected to bring long-term growth to the Group's business, with the Group remaining Shenzhen Comtech's ultimate controlling shareholder1446 Pledge of Assets and Contingent Liabilities As of June 30, 2025, the Group pledged RMB 722.9 million in bank deposits for credit facilities, with no significant contingent liabilities for the Group or the Company during the period | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Pledged Bank Deposits | 722.9 | 231.5 | - Pledged bank deposits serve as collateral for credit facilities granted by several banks in Hong Kong and China47 - As of June 30, 2025, neither the Group nor the Company had any significant contingent liabilities48 Exchange Rate Risk Foreign currency transactions are translated at transaction date rates, monetary assets/liabilities at period-end rates, with exchange differences recognized in profit or loss; no derivatives are used, but management monitors and may consider hedging - Foreign currency transactions are translated at the exchange rates prevailing on the transaction dates, while monetary assets and liabilities are translated at the exchange rates at the end of the reporting period, with exchange gains and losses recognized in profit or loss49 - The Group does not use derivative financial instruments to hedge foreign exchange risk, but management closely monitors and will consider hedging when necessary49 Events After Reporting Period No significant events affecting the Group have occurred since the end of the six months ended June 30, 2025 - No significant events that could affect the Group have occurred since the end of the reporting period50 Condensed Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For H1 2025, the Group reported RMB 6,676.5 million in revenue, RMB 190.0 million in profit for the period, and RMB 194.7 million in total comprehensive income | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 6,676,479 | 4,321,417 | | Gross Profit | 585,868 | 457,595 | | Operating Profit | 275,629 | 228,200 | | Profit for the Period | 190,046 | 169,057 | | Profit Attributable to Owners of the Company | 132,075 | 112,688 | | Total Comprehensive Income (Expense) for the Period | 194,744 | (204,934) | | Basic Earnings Per Share (RMB) | 0.086 | 0.082 | Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets less current liabilities were RMB 5,347.2 million, with net assets at RMB 4,804.4 million, driven by increased financial assets at fair value through OCI and growth in current assets | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current Assets | 2,968,944 | 2,866,542 | | Current Assets | 9,260,018 | 6,739,997 | | Current Liabilities | 6,881,803 | 4,781,189 | | Net Current Assets | 2,378,215 | 1,958,808 | | Total Assets Less Current Liabilities | 5,347,159 | 4,825,350 | | Net Assets | 4,804,429 | 4,408,884 | | Total Equity | 4,804,429 | 4,408,884 | - Financial assets at fair value through other comprehensive income increased from RMB 796,786 thousand as of December 31, 2024, to RMB 1,205,186 thousand53 - Inventories increased from RMB 3,510,501 thousand to RMB 4,877,289 thousand; trade receivables, bills receivable, and other receivables increased from RMB 2,380,719 thousand to RMB 2,528,221 thousand; cash and cash equivalents increased from RMB 608,229 thousand to RMB 903,915 thousand53 Notes to Financial Statements General Information and Basis of Preparation IngDan Innovation, incorporated in the Cayman Islands and listed on HKEX, primarily sells ICs, electronic components, AIoT products, and provides financial services, with interim financials presented in RMB under HKAS 34 and Listing Rules - The Company is incorporated in the Cayman Islands, and its shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited55 - The Group is principally engaged in the sale of ICs, other electronic components, AIoT products, and self-developed and semiconductor products, as well as the provision of financial services (Gravity Finance)55 - The condensed consolidated interim financial information is presented in RMB and has been prepared in accordance with Hong Kong Accounting Standard 34 and the applicable disclosure requirements of the Listing Rules5657 Accounting Policies Interim financial information is primarily prepared using historical cost, with certain financial assets at fair value; new HKFRS revisions had no significant impact on financial performance or position - The condensed consolidated interim financial information has been prepared principally under the historical cost convention, except for certain financial assets which are measured at fair value58 - The revisions to HKFRS accounting standards issued by the Hong Kong Institute of Certified Public Accountants were first applied in this interim period but had no significant impact on the Group's financial performance and position59 Revenue Analysis The Group's revenue comprises sales of ICs, electronic components, AIoT products, self-developed and semiconductor products, and Gravity Finance interest income, primarily from China (including Hong Kong) and recognized at a point in time | Revenue Source | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Sales of ICs, Electronic Components, AIoT Products, and Self-developed & Semiconductor Products | 6,653,438 | 4,300,831 | | Interest Income from Gravity Finance | 23,041 | 20,586 | | Total Revenue | 6,676,479 | 4,321,417 | - For the six months ended June 30, 2025, all revenue from goods and services was recognized at a point in time and originated entirely from the China (including Hong Kong) market63 Segment Information The Group has two reportable segments: Comtech Technology, with RMB 6,345.8 million in external revenue from ICs and AIoT products, and IngDan Technology, with RMB 330.7 million from self-developed products, financial services, and software licensing - The Group identifies two reportable segments: Comtech Technology (sales of ICs, other electronic components, and AIoT products) and IngDan Technology (sales of self-developed and semiconductor products, Gravity Finance, software licensing, and incubator businesses)66 | Segment | H1 2025 External Revenue (RMB thousand) | H1 2024 External Revenue (RMB thousand) | | :--- | :--- | :--- | | Comtech Technology | 6,345,756 | 4,042,719 | | IngDan Technology | 330,723 | 278,698 | | Total | 6,676,479 | 4,321,417 | | Segment | H1 2025 Segment Profit (RMB thousand) | H1 2024 Segment Profit (RMB thousand) | | :--- | :--- | :--- | | Comtech Technology | 243,798 | 183,134 | | IngDan Technology | 102,305 | 57,349 | | Total Segment Profit | 346,103 | 240,483 | Notes on Other Income, Gains and Losses For H1 2025, total other income, gains, and losses were RMB 14.2 million, mainly from RMB 6.7 million in bank interest and RMB 4.7 million in non-recurring government grants without unfulfilled conditions | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Bank Interest Income | 6,723 | 7,266 | | Government Grants | 4,740 | 839 | | Others | 2,955 | 59 | | Loss on Disposal of Investment Property | (225) | — | | Total | 14,193 | 8,164 | - Government grants are non-recurring and are not subject to unfulfilled conditions or other contingencies73 Notes on Income Tax Expense For H1 2025, income tax expense totaled RMB 28.6 million, comprising RMB 12.7 million in China corporate income tax, RMB 19.5 million in Hong Kong profits tax, and RMB (3.7) million in deferred tax | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | China Corporate Income Tax | 12,698 | 2,278 | | Hong Kong Profits Tax | 19,547 | 11,020 | | Deferred Tax | (3,662) | (3,770) | | Total | 28,583 | 9,528 | Dividends No dividends were paid, declared, or proposed by the Company for the six months ended June 30, 2025 - No dividends were paid, declared, or proposed for the six months ended June 30, 202575 EPS Calculation For H1 2025, profit attributable to owners was RMB 132.1 million, with weighted average ordinary shares of 1,544,310 thousand for basic EPS and 1,544,335 thousand for diluted EPS | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit for the purpose of calculating basic and diluted EPS | 132,075 | 112,688 | | Metric | H1 2025 (thousand shares) | H1 2024 (thousand shares) | | :--- | :--- | :--- | | Weighted average number of ordinary shares for basic EPS | 1,544,310 | 1,370,028 | | Weighted average number of ordinary shares for diluted EPS | 1,544,335 | 1,370,992 | Loans Receivable As of June 30, 2025, total loans receivable were RMB 784.1 million, comprising RMB 227.7 million non-current and RMB 556.4 million current portions | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current Portion | 227,730 | 2,875 | | Current Portion | 556,350 | 803,622 | | Total | 784,080 | 806,497 | Trade and Other Receivables As of June 30, 2025, total trade and other receivables were RMB 2,528.2 million, with trade and bills receivables (net of loss allowance) at RMB 2,186.7 million, having credit terms of 30 to 120 days | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade and Bills Receivables (net of loss allowance) | 2,186,708 | 1,965,876 | | Interest Receivable on Loans | 85,914 | 73,181 | | Trade Deposits and Prepayments | 222,342 | 310,291 | | Other Receivables | 33,257 | 21,371 | | Total | 2,528,221 | 2,380,719 | | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 month | 2,056,591 | 1,839,691 | | 1 to 2 months | 43,775 | 42,347 | | 2 to 3 months | 23,991 | 11,751 | | Over 3 months | 62,351 | 72,087 | | Total | 2,186,708 | 1,965,876 | Trade and Other Payables As of June 30, 2025, total trade and other payables were RMB 4,155.1 million, with trade payables at RMB 4,090.7 million, managed with a 30-day average credit period and financial risk controls | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Payables | 4,090,739 | 2,388,410 | | Accrued Staff Costs | 27,087 | 29,473 | | Other Payables | 37,319 | 57,344 | | Total | 4,155,145 | 2,475,227 | | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 month | 4,038,636 | 1,891,643 | | 1 to 3 months | 28,707 | 465,111 | | Over 3 months | 23,396 | 31,656 | | Total | 4,090,739 | 2,388,410 | - The average credit period granted to the Group is 30 days, and the Group has implemented financial risk management to ensure all payables are settled within the credit terms80 Share Capital As of June 30, 2025, the Company's authorized share capital was 500 billion ordinary shares at USD 0.0000001 each, with issued capital increasing by 250 million shares to 1,644,262,732 due to a placement for debt reduction and working capital | Item | June 30, 2025 (shares) | December 31, 2024 (shares) | | :--- | :--- | :--- | | Authorized Ordinary Shares | 500,000,000,000 | 500,000,000,000 | | Issued and Fully Paid Ordinary Shares | 1,644,262,732 | 1,394,262,732 | - On February 7, 2025, the Company entered into a subscription agreement with independent private investors for the placement of 250,000,000 new shares at a subscription price of HKD 1.30 per share, with net proceeds of approximately HKD 324,146,453 used for the acquisition of Shenzhen Comtech shares, redemption payments, and general working capital of the Company828384 Other Information Purchase, Sale or Redemption of Listed Securities On February 7, 2025, the Company placed 250 million shares for HKD 325 million, with net proceeds fully utilized; no other listed securities were purchased, sold, or redeemed by the Company or its subsidiaries - On February 7, 2025, the Company entered into a subscription agreement with subscribers for the placement of 250,000,000 subscription shares at a subscription price of HKD 1.30 per share, totaling HKD 325,000,00084 - The net proceeds of approximately HKD 324,146,453 were fully utilized for the acquisition of Shenzhen Comtech shares, redemption payments, and general working capital of the Company84 - Save as disclosed above, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities on The Stock Exchange of Hong Kong Limited85 Corporate Governance The Company adheres to strict corporate governance, complying with Listing Rules' Corporate Governance Code and Model Code, with exceptions for Chairman/CEO roles and monthly management updates, which the Board deems effective and under review Compliance with Corporate Governance Code The Company complied with the Corporate Governance Code, except for the combined Chairman/CEO role and non-monthly management updates, which the Board believes ensure leadership consistency and decision-making efficiency - The Company has complied with all applicable code provisions of Appendix C1 "Corporate Governance Code" of the Listing Rules during the reporting period, except for code provision C.2.1 (segregation of Chairman and Chief Executive Officer roles) and D.1.2 (management providing monthly updates to all Board members)8687 - The Board believes that combining the roles of Chairman and Chief Executive Officer ensures consistent leadership within the Group and enhances efficiency in strategic planning87 - While management does not provide monthly updates, it provides the Board with the latest business information quarterly and on an ad-hoc basis, ensuring directors are timely informed of the Group's performance87 Model Code for Securities Transactions by Directors The Company adopted the Model Code for Securities Transactions by Directors, with all Directors confirming strict compliance, and no instances of non-compliance by employees were found - The Company has adopted the "Model Code for Securities Transactions by Directors of Listed Issuers" as set out in Appendix C3 of the Listing Rules, and all Directors confirmed strict compliance with the code during the reporting period and up to the announcement date89 - The Company has not identified any instances of non-compliance with the Model Code by relevant employees89 Audit Committee and Review of Interim Results The Audit Committee, comprising three independent non-executive directors chaired by Mr. Hao Chunyi, reviewed the Group's unaudited interim results, accounting policies, and internal controls, with the results also reviewed by Shinewing (HK) CPA Limited - The Audit Committee is composed of three independent non-executive directors, with Mr Hao Chunyi serving as Chairman90 - The Audit Committee has reviewed the Group's unaudited interim results and discussed accounting policies and internal control matters with senior management90 - The unaudited interim results for the six months ended June 30, 2025, have been reviewed by the auditor, Shinewing (HK) CPA Limited91 Other Board Committees Besides the Audit Committee, the Company has also established a Nomination Committee and a Remuneration Committee - In addition to the Audit Committee, the Company has also established a Nomination Committee and a Remuneration Committee92 Major Litigation As of June 30, 2025, the Company was not involved in any major litigation or arbitration, and Directors were unaware of any outstanding or threatened significant claims - As of June 30, 2025, the Company was not involved in any major litigation or arbitration matters93 Interim Dividend The Board does not recommend an interim dividend for the reporting period - The Board does not recommend the payment of an interim dividend for the reporting period (six months ended June 30, 2024: nil)94 Publication Information This interim results announcement is published on the HKEX and Company websites, and the interim report will be dispatched to shareholders in due course - This interim results announcement has been published on the HKEX website www.hkexnews.hk and the Company's website www.ingdangroup.com[95](index=95&type=chunk) - The Company's interim report for the reporting period will be published on the aforementioned websites and dispatched to the Company's shareholders in due course95