知行科技(01274) - 2025 - 中期业绩

Interim Results Announcement Financial Summary The company reported a significant decline in revenue and gross profit for H1 2025, with increased losses and no interim dividend recommendation H1 2025 Key Financial Indicators (YoY) | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 365.99 | 636.16 | -42.47% | | Gross Profit | 17.07 | 44.85 | -61.93% | | Gross Profit Margin | 4.67% | 7.05% | -2.38 percentage points | | Loss Before Income Tax | (177.86) | (98.60) | +80.39% | | Loss Attributable to Equity Holders of the Company | (177.88) | (98.61) | +80.38% | | Basic and Diluted Loss Per Share | (0.75) | (0.44) | +70.45% | - The Board does not recommend an interim dividend for the reporting period, consistent with H1 2024[3] Condensed Consolidated Financial Statements This section presents the unaudited condensed consolidated financial statements for the six months ended June 30, 2025, detailing the company's financial performance, position, equity changes, and cash flows Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income This statement details the company's revenues, costs, gross profit, operating loss, and net loss for the six months ended June 30, 2025 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 365,993 | 636,157 | | Cost of Sales | (348,919) | (591,305) | | Gross Profit | 17,074 | 44,852 | | Operating Loss | (182,240) | (100,063) | | Loss Before Income Tax | (177,861) | (98,600) | | Loss for the Period | (177,946) | (98,629) | | Loss and Total Comprehensive Loss for the Period Attributable to Equity Holders of the Company | (177,882) | (98,613) | | Basic and Diluted Loss Per Share (RMB) | (0.75) | (0.44) | Condensed Consolidated Statement of Financial Position This statement presents the company's assets, equity, and liabilities as of June 30, 2025, reflecting its financial structure and solvency Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | ASSETS | | | | Total Non-current Assets | 493,870 | 411,668 | | Total Current Assets | 1,092,996 | 1,149,254 | | TOTAL ASSETS | 1,586,866 | 1,560,922 | | EQUITY | | | | Share Capital | 241,948 | 230,757 | | Reserves | 1,352,677 | 1,181,008 | | Accumulated Losses | (686,687) | (508,741) | | TOTAL EQUITY | 907,938 | 903,024 | | LIABILITIES | | | | Total Non-current Liabilities | 247,649 | 181,770 | | Total Current Liabilities | 431,279 | 476,128 | | TOTAL LIABILITIES | 678,928 | 657,898 | | TOTAL EQUITY AND LIABILITIES | 1,586,866 | 1,560,922 | | Net Current Assets | 661,717 | 673,126 | Condensed Consolidated Statement of Changes in Equity This statement outlines the changes in the company's equity components, including share capital, reserves, and accumulated losses, for the period ended June 30, 2025 Condensed Consolidated Statement of Changes in Equity (As of June 30, 2025) | Indicator | Share Capital (RMB thousand) | Reserves (RMB thousand) | Accumulated Losses (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | As of January 1, 2025 | 230,757 | 1,181,008 | (508,741) | 903,024 | | Loss for the period | – | – | (177,946) | (177,946) | | Other comprehensive loss | – | (64) | – | (64) | | Placing of new shares | 11,191 | 198,991 | – | 210,182 | | Purchase of shares for share award scheme | – | (27,258) | – | (27,258) | | As of June 30, 2025 | 241,948 | 1,352,677 | (686,687) | 907,938 | Condensed Consolidated Statement of Cash Flows This statement presents the company's cash flows from operating, investing, and financing activities for the six months ended June 30, 2025 Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net cash used in operating activities | (97,507) | (406,911) | | Net cash generated from/(used in) investing activities | 65,709 | (168,734) | | Net cash generated from financing activities | 230,084 | 65,374 | | Net increase/(decrease) in cash and cash equivalents | 198,286 | (510,271) | | Cash and cash equivalents at end of period | 378,622 | 212,390 | Notes to the Unaudited Interim Financial Report This section provides detailed notes to the interim financial report, covering general information, basis of preparation, accounting policy changes, revenue, expenses, tax, loss per share, inventories, receivables, borrowings, payables, and dividend policy General Information This section provides fundamental details about the company, including its establishment date, registration location, and primary business activities - ZhiXing Automotive Technology (Suzhou) Co., Ltd. was incorporated in Suzhou on December 27, 2016, primarily engaged in the development, manufacturing, and sales of combined driving assistance solutions and products[9] - The company was listed on the Main Board of The Stock Exchange of Hong Kong Limited on December 20, 2023[9] Basis of Preparation This section outlines the accounting standards and disclosure provisions used in preparing the interim financial report - This interim financial report is prepared in accordance with the disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and International Accounting Standard 34 'Interim Financial Reporting'[10] - This interim financial report is unaudited, but financial information for the year ended December 31, 2024, is extracted from the published annual financial statements with an unqualified opinion[11] Changes in Accounting Policies This section details the application of new accounting standards and interpretations, noting their impact on the interim financial report - The Group has applied amendments to IAS 21 'The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability', which had no significant impact on this interim report due to the absence of relevant foreign currency transactions[12] - The Group has not applied any new standards or interpretations that are not yet effective for the current accounting period[13] Revenue and Segment Information This section provides an overview of the company's revenue streams and confirms its operation as a single business segment primarily in China - The Group primarily engages in the production, R&D, and sales of combined driving assistance solutions and products in China, operating as a single business segment[14] Revenue Analysis by Category (For the six months ended June 30) | Revenue Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Combined driving assistance solutions and products | 327,495 | 613,257 | | Autonomous driving related R&D services | 25,790 | 19,610 | | Sales of PCBA products | 12,708 | 3,290 | | Total Revenue | 365,993 | 636,157 | - For the six months ended June 30, 2025, impairment provisions for contract costs recognized significantly increased to approximately RMB 1,475,000, up from RMB 77,000 in the same period of 2024[18] Other Income This section details the company's other income streams, primarily focusing on government subsidies received during the reporting period Other Income (For the six months ended June 30) | Income Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Government grants | 2,904 | 2,198 | - Government grants are primarily utilized for R&D expenses and the construction of advanced industrial bases, with no unfulfilled conditions or contingent matters attached[22] Other Losses – Net This section presents the net other losses, including fair value changes of financial instruments and exchange losses, for the six months ended June 30, 2025 Other Losses – Net (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net fair value gain on derivative financial instruments | – | 626 | | Net gain/(loss) on disposal of property, plant and equipment and intangible assets | 1 | (1) | | Net fair value gain/(loss) on financial assets at fair value through profit or loss | 1,280 | (5,708) | | Net exchange losses | (3,732) | (6,026) | | Others | 7 | 32 | | Total | (2,444) | (11,077) | Loss Before Income Tax This section details the components contributing to the company's loss before income tax, including financial income and costs, and other operating expenses Finance Income and Costs (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest income from bank balances | 6,215 | 3,655 | | Interest on bank and other borrowings | (4,471) | (2,714) | | Interest on lease liabilities | (48) | (80) | | Less: Interest expenses capitalized into construction in progress | 2,683 | 602 | | Net Finance Income | 4,379 | 1,463 | Other Items of Expense (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of inventories | 339,370 | 567,442 | | Depreciation: Property, plant and equipment | 7,033 | 5,243 | | Depreciation: Right-of-use assets | 2,530 | 1,784 | | Research and development expenses | 156,526 | 99,587 | | Amortization of intangible assets | 5,055 | 2,942 | - Staff costs and depreciation expenses within R&D expenses amounted to RMB 117,097,000 (2024: RMB 77,187,000) respectively[26] Income Tax Expense This section details the company's income tax expenses and the preferential tax policies it benefits from as a high-tech enterprise Income Tax Expense (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current income tax expense | 85 | 29 | | Deferred income tax expense | – | – | | Income Tax Expense | 85 | 29 | - As a high-tech enterprise, the company enjoys a preferential corporate income tax rate of 15%, with its qualification renewed until 2025[28] - Subsidiaries qualifying as small and micro enterprises benefit from a policy allowing their annual taxable income to be calculated at 25% and taxed at a 20% rate, extended until December 31, 2027[28] - Enterprises engaged in R&D activities can deduct 200% of their R&D expenses for tax purposes (super deduction)[29] Loss Per Share This section details the calculation of basic and diluted loss per share for the reporting period, considering the weighted average number of ordinary shares outstanding Basic Loss Per Share (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Loss attributable to ordinary equity holders of the Company (RMB thousand) | (177,946) | (98,629) | | Weighted average number of ordinary shares in issue (thousand shares) | 236,775 | 226,330 | | Basic loss per share (RMB) | (0.75) | (0.44) | - Diluted loss per share is identical to basic loss per share, as there were no potential dilutive ordinary shares outstanding during the period[32] Inventories This section provides a breakdown of the company's inventory composition and the associated impairment provisions as of June 30, 2025 Inventory Composition (As of June 30, 2025) | Inventory Category | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Raw materials | 105,131 | 145,526 | | Work in progress | 15,559 | 9,840 | | Finished goods | 162,217 | 146,283 | | Less: Impairment provision | (2,892) | (2,706) | | Total | 280,015 | 298,943 | - For the six months ended June 30, 2025, recognized inventory impairment provisions significantly increased to approximately RMB 4,048,000, up from RMB 266,000 in the same period of 2024[35] Trade and Other Receivables This section presents the company's trade receivables, including loss provisions and an aging analysis, as of June 30, 2025 Trade and Other Receivables (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables | 273,987 | 227,360 | | Loss allowance | (6,980) | (5,239) | | Total | 267,007 | 222,121 | Aging Analysis of Trade Receivables (As of June 30, 2025) | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 3 months | 216,285 | 206,577 | | 3 to 6 months | 32,138 | 7,132 | | 6 to 12 months | 17,433 | 658 | | Over 12 months | 8,131 | 12,993 | Borrowings This section details the company's borrowing structure, including secured and unsecured bank loans and other loans, as of June 30, 2025 Borrowings Composition (As of June 30, 2025) | Borrowing Category | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current liabilities: Secured bank borrowings | 240,399 | 170,173 | | Current liabilities: Secured bank borrowings | 15,933 | – | | Current liabilities: Unsecured bank borrowings | 80,000 | 114,500 | | Current liabilities: Other loans | 30,000 | 30,000 | | Current liabilities: Interest payable | 187 | 225 | | Total Borrowings | 366,519 | 314,898 | - The Group pledged land use rights with a carrying amount of approximately RMB 29,957,000 to banks as collateral for long-term bank borrowings of RMB 256,332,000[37] - The Group's borrowings are subject to interest rate changes and contract repricing or maturity dates, with RMB 100,000,000 of borrowings maturing within six months[38] Trade and Other Payables This section provides a breakdown of the company's trade payables, other payables, and accrued expenses as of June 30, 2025 Trade Payables (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Payables for materials | 136,932 | 114,918 | Other Payables and Accrued Expenses (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Payables for purchase of property, plant and equipment | 62,834 | 82,816 | | Salaries and welfare payables | 15,435 | 36,797 | | Accrued expenses | 30,948 | 39,019 | | Other tax payables | 2,389 | 2,762 | | Others | 34,503 | 25,161 | | Total | 146,109 | 186,555 | - Service fees for autonomous driving products collected from customers but not yet paid to suppliers amounted to approximately RMB 30,559,000[40] Dividends This section confirms the company's dividend policy and the absence of any interim dividend payments or declarations during the reporting period - For the six months ended June 30, 2025 and 2024, the company neither paid nor declared any dividends[41] Management Discussion and Analysis This section reviews H1 2025 market conditions, business performance, financial position, liquidity, and capital sources, outlining future strategies despite market competition and revenue decline Market Review This section reviews the H1 2025 automotive market in China, highlighting growth in production, sales, new energy vehicles, and the increasing penetration of intelligent driving systems - In H1 2025, China's auto production and sales grew by 12.5% and 11.4% respectively, with new energy vehicle production and sales increasing by 41.4% and 40.3%, achieving a market share of 44.3%[43] - The market share of Chinese brand passenger vehicles reached 68.4%, an increase of 6.5% compared to the same period last year[43] - Chinese government departments introduced multiple policies to promote and regulate the intelligent driving industry, including making Automatic Emergency Braking (AEB) a mandatory standard and incorporating combined driving assistance systems and OTA into mandatory regulatory frameworks[44] - The penetration rate of combined driving assistance systems continues to increase, particularly rapidly in vehicle models priced below RMB 200,000[45] - Autonomous driving algorithm models are continuously upgrading, evolving from 'perception-decision' end-to-end large models to 'understanding-reasoning' VLM/VLA large models, enhancing generalization capabilities and scene understanding[46] Business Review This section reviews the company's business performance, product deliveries, new OEM partnerships, and strategic advancements in autonomous driving and embodied AI - The Group is a Chinese intelligent driving solutions provider, offering L2 to L2+ combined driving assistance solutions and developing L3 to L4 autonomous driving solutions[47] - During the reporting period, the company delivered over 116,000 sets of combined driving assistance solutions and products, representing a 20.8% year-on-year increase[47] Revenue by Major Business Line (For the six months ended June 30) | Business Line | 2025 (RMB million) | 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Combined driving assistance solutions and products | 327.50 | 613.26 | -46.60% | | Intelligent driving related R&D services | 25.79 | 19.61 | +31.51% | | Sales of PCBA products | 12.71 | 3.29 | +286.26% | - Revenue from self-developed iDC series combined driving assistance domain controllers increased by 115.66% year-on-year, and intelligent front-view camera revenue increased by 115.99%, primarily due to mass production and delivery of new vehicle models[49] - During the reporting period, the company secured 19 nomination letters from renowned OEM clients such as Chery Automobile, Geely Automobile, and Dongfeng Motor, with production expected in 2025 and 2026[52] - The full-stack self-developed iDC500 combined driving assistance domain controller officially entered mass production, and a strategic cooperation agreement was signed with Horizon Robotics to advance mass production based on the Journey 6 series[53] - The company is actively expanding into the embodied AI sector, establishing a wholly-owned subsidiary, Aimoxing Robotics (Suzhou) Co., Ltd., and signing an equity restructuring framework agreement with Suzhou Xiaogongjiang Robotics Co., Ltd[54] - The company is actively pursuing overseas expansion by forming a joint venture with Delloyd Technology Berhad in Malaysia to penetrate the Southeast Asian market[55] Financial Review This section provides a detailed financial review, analyzing revenue, cost of sales, gross profit margin, R&D expenses, finance income, and net loss for the reporting period Revenue Breakdown and Proportion (For the six months ended June 30) | Revenue Category | 2025 (RMB thousand) | Proportion (%) | 2024 (RMB thousand) | Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | Combined driving assistance domain controller solutions | 294,402 | 80.44% | 597,939 | 93.99% | | Intelligent front-view cameras | 33,093 | 9.04% | 15,318 | 2.41% | | Intelligent driving related R&D services | 25,790 | 7.05% | 19,610 | 3.08% | | Sales of PCBA products | 12,708 | 3.47% | 3,290 | 0.52% | | Total | 365,993 | 100.00% | 636,157 | 100.00% | - Revenue decreased by 42.47%, primarily due to reduced demand from OEM clients, with a decline in Supervision product sales offset by an increase in iDC series product sales[56] - Cost of sales and services decreased by 40.99% year-on-year to RMB 348.92 million, consistent with the revenue decline[59] - Gross profit margin decreased from 7.05% in H1 2024 to 4.67%, mainly due to strategic price reductions for certain iDC and iFC products to expand market share and maintain customer loyalty[60] - R&D expenses increased by 57.18% year-on-year to RMB 156.53 million, with the percentage of revenue rising from 15.65% to 42.77%, primarily due to increased investment in self-developed new products and intelligent driving technologies[65] - Finance income increased by RMB 2.56 million year-on-year to RMB 6.22 million, mainly due to increased cash from the completion of a placing in February 2025[66] - Loss for the period increased by 80.42% year-on-year to RMB 177.95 million, and loss attributable to owners of the parent increased by 80.38% to RMB 177.88 million[68][69] Liquidity and Capital Resources This section analyzes the company's cash flow from operating, investing, and financing activities, along with changes in net current assets, inventories, borrowings, and capital expenditure - Net cash outflow from operating activities decreased from RMB 406.91 million in H1 2024 to RMB 97.51 million in the current reporting period, primarily due to reduced raw material purchases[70] - Net cash inflow from investing activities was RMB 65.71 million, compared to a net outflow of RMB 168.73 million in H1 2024, mainly due to higher redemptions of financial assets at fair value through profit or loss[70] - Net cash inflow from financing activities significantly increased to RMB 230.08 million, up from RMB 65.37 million in H1 2024, primarily due to investment proceeds from a placing completed in February 2025[71] - Net current assets were RMB 661.72 million as of June 30, 2025, slightly lower than RMB 673.13 million as of December 31, 2024[72] - Inventories decreased by 6.33% to RMB 280.02 million, but average inventory turnover days increased from 92 to 149, mainly due to advance stock-piling for headquarters relocation[73] - Total borrowings increased by 16.39% to RMB 366.52 million[74][77] - The gearing ratio increased from 29.20% as of June 30, 2024, to 40.37% as of June 30, 2025[78] - Total capital expenditure increased by 51.29% to RMB 124.43 million, primarily for new plant infrastructure and equipment purchases[80] - Staff costs increased by 31.87% to RMB 127.07 million, mainly due to higher labor costs for R&D and management personnel, with total employees rising to 559[84] Significant Investments This section confirms the absence of any significant investments during the reporting period, apart from the utilization of proceeds from global offerings and placings - As of June 30, 2025, the Group had no significant investments or other future major investment and capital asset plans, apart from utilizing the remaining net proceeds from global offerings and placings[85] Significant Acquisitions and Disposals This section confirms that the company did not undertake any significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period - During the reporting period, the Group had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures[86] Future Strategies and Outlook This section outlines the company's strategic direction, focusing on product optimization, R&D investment, market expansion, value chain integration, and diversification into embodied AI - 2025 is expected to be the inaugural year for widespread intelligent driving, with a significant increase in penetration, and the company will offer cost-effective solutions to meet diverse vehicle demands[87] - China's auto exports reached new highs, intelligent driving features are increasingly crucial in new energy vehicles, and the embodied AI industry is rapidly developing with clear synergistic trends with intelligent driving technology[88] - The company will continuously optimize existing product lines, expand in-house manufacturing capabilities, provide more cost-effective solutions through technological advancements and supply chain optimization, and enhance supply chain and manufacturing digitalization[89] - Increased R&D investment will deepen VLA large model deployment, improve the full-link data closed-loop system, optimize self-developed software middleware, and strengthen cooperation with Horizon Robotics to build integrated cockpit-driving and central vehicle computing platforms[90] - The company will deepen cooperation with existing clients, expand into more vehicle models, increase the size of its sales and marketing teams, and collaborate with strategic partners to enlarge its OEM client base[91] - Enhancing value chain integration involves collaborating with top international SoC suppliers and Horizon Robotics, deepening partnerships with sensor suppliers, and planning to strengthen vertical integration capabilities through investments or M&A[92] - A firm overseas expansion strategy includes supporting Chinese OEM outbound businesses, actively developing international clients, planning a global sales and service network, and leveraging strategic overseas shareholder resources to establish international alliances[93] - Actively exploring diversified business models involves promoting domain controllers in unmanned logistics and increasing investment in embodied AI, exploring cooperation opportunities in main controllers, key components, and algorithms[94] Corporate Governance and Other Information This section details the company's corporate governance practices, including code compliance, securities dealing standards, interim dividend policy, use of proceeds from offerings, post-reporting events, and financial statement review Corporate Governance Code This section outlines the company's adherence to the Corporate Governance Code, noting an exception regarding the combined roles of Chairman and CEO - The company has complied with all applicable code provisions of the Corporate Governance Code, with the exception of code provision C.2.1[95] - The roles of Chairman and Chief Executive Officer are held by the same individual (Mr. Song Yang), an arrangement the Board believes facilitates unified leadership and effective executive function, with the Board's structure ensuring a balance of power[95] Standard Code for Securities Transactions This section confirms the company's adoption and compliance with the Standard Code for Securities Transactions by its directors and supervisors - The company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers, and all directors and supervisors confirmed compliance during the reporting period[96] Interim Dividend This section reiterates the Board's decision not to recommend an interim dividend for the reporting period, consistent with the prior year - The Board does not recommend an interim dividend for the reporting period, consistent with H1 2024[97] Use of Proceeds from Global Offering This section details the allocation and utilization of net proceeds from the global offering, including amounts used for R&D, capital expenditure, and sales network expansion - The net proceeds from the global offering amounted to approximately RMB 575.83 million[98] Use of Proceeds from Global Offering (As of June 30, 2025) | Purpose | Proportion (%) | Net Proceeds (RMB million) | Unutilized as of Jan 1, 2025 (RMB million) | Actual Use during Period (RMB million) | Unutilized as of June 30, 2025 (RMB million) | Expected Time for Full Utilization | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Enhance R&D for autonomous driving solutions and products | 45.0% | 259.12 | 43.88 | 43.88 | 0 | Fully utilized | | Capital expenditure for R&D headquarters, production plants, and new production lines | 35.0% | 201.54 | 18.43 | 18.43 | 0 | Fully utilized | | Expand sales and service network | 10.0% | 57.58 | 44.03 | 5.60 | 38.43 | Before end of 2026 | | Working capital and general corporate purposes | 10.0% | 57.58 | 0 | – | – | Fully utilized | | Total | 100.0% | 575.83 | 106.34 | 67.91 | 38.43 | | - As of June 30, 2025, approximately RMB 38.43 million of net proceeds from the global offering remained unutilized, expected to be fully utilized before the end of 2026[99] Use of Proceeds from 2024 Placing of New H Shares This section details the allocation and utilization of net proceeds from the 2024 placing of new H shares, including amounts for R&D, capital expenditure, and overseas expansion - The net proceeds from the 2024 placing amounted to approximately HKD 73.28 million[100] Use of Proceeds from 2024 Placing (As of June 30, 2025) | Purpose | Proportion (%) | Net Proceeds (HKD million) | Unutilized as of Jan 1, 2025 (HKD million) | Actual Use during Period (HKD million) | Unutilized as of June 30, 2025 (HKD million) | Expected Time for Full Utilization | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Enhance R&D for advanced intelligent driving, cockpit-driving integrated solutions and products | 40.0% | 29.30 | 8.26 | 8.26 | 0 | Fully utilized | | Enhance capital expenditure for R&D and production facilities | 20.0% | 14.66 | 0 | – | – | Fully utilized | | Expand overseas sales and service network | 20.0% | 14.66 | 12.36 | 1.28 | 11.08 | Before end of 2026 | | Working capital and general corporate purposes | 20.0% | 14.66 | 5.31 | 5.31 | 0 | Fully utilized | | Total | 100.0% | 73.28 | 25.93 | 14.85 | 11.08 | | - As of June 30, 2025, approximately HKD 11.08 million of net proceeds from the 2024 placing remained unutilized, expected to be fully utilized before the end of 2026[101] Use of Proceeds from 2025 Placing of New H Shares This section details the allocation and utilization of net proceeds from the 2025 placing of new H shares, including amounts for R&D, capital expenditure, and working capital - The company completed the placing of 11,190,200 new H shares in February 2025, with net proceeds amounting to approximately HKD 228.37 million[102] Use of Proceeds from 2025 Placing (As of June 30, 2025) | Purpose | Proportion (%) | Net Proceeds (HKD million) | Actual Use during Period (HKD million) | Unutilized as of June 30, 2025 (HKD million) | Expected Time for Full Utilization | | :--- | :--- | :--- | :--- | :--- | :--- | | Enhance R&D for advanced intelligent driving, cockpit-driving integrated solutions and products | 60.0% | 137.02 | 76.27 | 60.75 | Before end of 2025 | | Enhance capital expenditure for R&D and production facilities | 10.0% | 22.84 | 5.53 | 17.31 | Before end of 2025 | | Expand overseas sales and service network | 5.0% | 11.42 | 0 | 11.42 | Before end of 2026 | | Working capital and general corporate purposes | 25.0% | 57.09 | 57.09 | 0 | Fully utilized | | Total | 100.0% | 228.37 | 138.89 | 89.48 | | - As of June 30, 2025, approximately HKD 89.48 million of net proceeds from the 2025 placing remained unutilized, with most expected to be fully utilized before the end of 2025[104] Purchase, Redemption or Sale of Listed Securities This section reports on the company's transactions involving its own listed securities, specifically noting purchases for a share award scheme - During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities, except for the trustee of the first H share award scheme purchasing 2,104,000 H shares for a total consideration of HKD 29.52 million[105] - As of June 30, 2025, the company held no treasury shares[106] Review of Financial Statements by Audit Committee This section confirms the Audit Committee's review of the unaudited interim financial statements and its satisfaction with their preparation and disclosure - The Audit Committee has reviewed the Group's unaudited consolidated financial statements and interim results for the six months ended June 30, 2025, deeming them prepared in accordance with applicable accounting standards, laws, and regulations, with appropriate disclosures[107] Significant Events After Reporting Period This section discloses significant events occurring after the reporting period, including a subsequent placing of new H shares and its intended use of proceeds - In July 2025, the company completed a second placing, allotting and issuing 15,495,000 new H shares with net proceeds of approximately HKD 230.7 million[108] - Net proceeds from the second 2025 placing will be used to enhance R&D for advanced intelligent driving and cockpit-driving integrated solutions, boost capital expenditure for R&D and production facilities, fund R&D, M&A for the company's robotics business, and for working capital and general corporate purposes[108] - Aside from the aforementioned disclosures, as of the announcement date, there were no other significant events materially impacting the Group's operations and financial performance[109] Publication of Interim Results Announcement and Interim Report This section informs stakeholders about the availability of the interim results announcement on the Stock Exchange and company websites, with the interim report to follow - This announcement has been published on the Stock Exchange website and the company's website, with the interim report to be dispatched to shareholders requesting printed copies and posted on the aforementioned websites in due course[110]