瑞昌国际控股(01334) - 2025 - 中期财报

Definitions This chapter defines key terms and abbreviations used in the report, ensuring clear understanding of the content - This section defines key terms and abbreviations used in the report, covering company entities, financial terms, regulatory bodies, and geographical references for clear understanding[4][5] Company Information This chapter details the company's board members, committee changes, auditor, and stock code - The company's board of directors includes executive directors Mr. Lu Bo (Chairman and CEO), Ms. Lu Xiaojing, Ms. Bai Wei, Mr. Shao Song, Ms. Wu Rui, and independent non-executive directors Mr. Bao Xiaofeng, Mr. Shen Cheng, Mr. Jiang Li (appointed on May 19, 2025), and Mr. Tu Shenwei (resigned on May 19, 2025)[6] - Changes occurred in the company's Audit, Remuneration, and Nomination Committees, with Mr. Jiang Li appointed Chairman of the Audit and Remuneration Committees on May 19, 2025, and Mr. Shen Cheng appointed Chairman of the Nomination Committee on June 30, 2025[6] - The company's auditor is Zhonghui Anda Certified Public Accountants Limited, and its stock code is 1334[6][8] Key Financial Highlights This chapter summarizes the company's key financial performance for H1 2025, noting a shift from profit to net loss Key Financial Highlights for the Six Months Ended June 30 (RMB thousands) | Indicator | 2025 (Unaudited) | 2024 (Unaudited) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 151,799 | 224,894 | -32.5% | | Gross Profit | 39,910 | 75,254 | -47.0% | | Gross Margin | 26.3% | 33.5% | -7.2 ppts | | (Net Loss)/Profit | (38,060) | 11,525 | Shift from profit to loss | | Basic and Diluted (Loss)/Earnings Per Share (RMB cents) | (7.59) | 3.07 | Shift from profit to loss | - The company shifted from profit to net loss in the first half of 2025, primarily due to a significant decline in revenue and gross profit[10] Management Discussion and Analysis This chapter reviews the company's operational performance, strategies, and financial results Operating Review This section reviews H1 2025 economic impacts on the petrochemical industry and details the company's strategic responses and operational focus - Global economic growth expectations diverged in the first half of 2025, with the IMF forecasting a slowdown in global GDP growth to 3.3%, constraining downstream demand in the petrochemical industry[11] - International crude oil prices generally showed a volatile and weak trend, with geopolitical events (e.g., Israel-Iran conflict) and OPEC+ production policies significantly impacting market sentiment, causing WTI crude spot prices to fall to $65.11/barrel by June 30, 2025[11] - The Chinese market promoted "anti-involution" policies, encouraging the elimination of outdated capacity, with new investments in the petrochemical industry focusing on high-end chemical new materials (18% growth in H1), green and low-carbon transformation, and refining-chemical integration to address industry changes[12][13][14] - The company actively responded to challenges, with key focuses in H1 including: aligning with the "dual carbon" strategy, increasing R&D in green energy technologies like biomass gasifiers, with parts of the new smart factory operational by July 2025; securing exclusive after-sales business authorization from Honeywell UOP's Callidus in China; establishing a Dubai subsidiary to expand into the Middle East and North Africa markets and joining ADNOC's supplier list; and fully commencing the "phosphorus-containing waste recycling" project to create a green benchmark[16][17][18][19] - In the first half of 2025, the Group achieved revenue of approximately RMB 151.8 million, gross profit of approximately RMB 39.9 million, and a loss attributable to owners of the parent company of approximately RMB 38.1 million, primarily due to strategic investments in green technology R&D, Middle East market expansion, and circular economy projects[20] Company Development Strategies The company's strategy focuses on enhancing R&D, deepening client services, accelerating green transition, global market penetration, and investing in phosphorus resource recovery for sustainable growth - The company will increase R&D investment, strategically focusing on deepening and breaking through its core businesses, enhancing product and service competitiveness through cutting-edge technological innovation, and promoting the commercialization of R&D achievements[21] - Leveraging the after-sales business authorization with Callidus, the company will optimize domestic operational efficiency and costs, provide efficient and high-quality after-sales services to existing customers, and explore energy-saving and consumption-reducing demands[22] - The company will continue to provide environmentally friendly and efficient energy solutions, deeply explore customer demands for energy saving and consumption reduction, and strengthen the market promotion of green energy technologies like biomass gasifiers[23] - Regarding overseas markets, the company will focus on key regions where it has entered and has project experience (e.g., Middle East and North Africa), flexibly adjust business strategies, formulate differentiated market strategies, and drive overseas business growth[24] - The company is fully committed to making the Huangshan phosphorus-containing waste recycling project an industry benchmark, with Phase I expected to be completed and trial-operated by December 2025, and plans to strategically invest in similar projects in other key regions[25] Financial Overview This section analyzes the company's H1 2025 financial performance, explaining revenue decline, margin contraction, and the shift to loss - The Group's revenue decreased by 32.5% from RMB 224.9 million in H1 2024 to RMB 151.8 million in H1 2025[26] Revenue Breakdown (RMB thousands) | Product Category | 2025 | Proportion | 2024 | Proportion | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Sulfur Recovery and VOC Incineration Equipment | 39,621 | 26.1% | 73,112 | 32.5% | -45.8% | | Catalytic Cracking Equipment | 53,079 | 35.0% | 132,673 | 59.0% | -60.0% | | Process Burners | 37,580 | 24.7% | 16,552 | 7.4% | +126.5% | | Heat Exchangers | 21,519 | 14.2% | 2,557 | 1.1% | +726.9% | | Total | 151,799 | 100.0% | 224,894 | 100.0% | -32.5% | - Gross profit decreased by 47.0% from RMB 75.3 million in H1 2024 to RMB 39.9 million in H1 2025, with gross margin falling from 33.5% to 26.3%, primarily due to intensified market competition and securing sales orders at lower prices[36] - Selling expenses, administrative expenses, and R&D expenses all increased, leading to a shift from a net profit of RMB 11.5 million to a net loss of RMB 38.1 million for the period[38][39][40][43] - As of June 30, 2025, cash and cash equivalents were RMB 92.7 million (December 31, 2024: RMB 129.9 million), total bank and other borrowings increased to RMB 189.7 million (December 31, 2024: RMB 105.2 million), and the gearing ratio rose to 57.0% (December 31, 2024: 29.4%)[45][46][48] Significant Acquisitions and Disposals This section discloses the establishment of Huangshan Zhonglin Technology Co., Ltd., a new subsidiary focused on phosphorus pollution control and waste recycling - The Group established a new subsidiary, Huangshan Zhonglin Technology Co., Ltd., on March 4, 2025, with a registered capital of RMB 45 million, and the company indirectly holds an 80% stake[53] - Huangshan Zhonglin primarily engages in phosphorus pollution control deployment, phosphorus-containing waste treatment technology, and related waste product recycling to produce concentrated nutrient solutions[53] Use of Net Proceeds This section updates the utilization of net proceeds from the company's July 2024 listing, allocated to capacity, R&D, and working capital - The company was listed on July 10, 2024, with net proceeds of approximately HKD 60.6 million (approximately RMB 55.6 million)[84] Intended Use and Application of Net Proceeds (RMB millions) | Intended Use | Approximate Percentage of Net Proceeds | Net Proceeds Utilized During the Reporting Period | Net Proceeds Unutilized as of June 30, 2025 | Expected Timeline for Full Utilization of Unutilized Net Proceeds | | :--- | :--- | :--- | :--- | :--- | | Increase capacity and capabilities of new production facilities | 73.0% | 8.5 | 25.9 | On or before June 30, 2026 | | Further enhance design and R&D capabilities | 17.5% | 3.0 | 3.7 | On or before December 31, 2025 | | General working capital | 9.5% | 1.7 | 1.8 | On or before June 30, 2026 | | Total | 100.0% | 13.2 | 31.4 | | - The company has no plans to deviate from the use of proceeds and business strategies disclosed in the prospectus[84] Corporate Governance and Other Information This chapter covers the company's corporate governance practices, including directors' and major shareholders' interests, share incentive schemes, and compliance Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares, and Debentures of the Company or its Associated Corporations This section discloses directors' and chief executive's interests and short positions in shares and associated corporations as of June 30, 2025 Directors'/Chief Executive's Interests in the Company's Shares (As of June 30, 2025) | Name of Director/Chief Executive | Capacity/Nature of Interest | Number of Shares Held | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Lu Bo | Beneficiary of a trust | 164,171,263 | 32.83% | | | Interest in controlled corporation | 5,598,240 | 1.12% | | Ms. Lu Xiaojing | Beneficiary of a trust | 164,171,263 | 32.83% | | | Interest in controlled corporation | 5,598,240 | 1.12% | | Ms. Bai Wei (Spouse of Mr. Lu Bo) | Interest of spouse | 169,769,503 | 33.95% | | Mr. Shao Song (Spouse of Ms. Lu Xiaojing) | Interest of spouse | 169,769,503 | 33.95% | - All listed interests are long positions, calculated based on the total issued shares of 500,000,000 as of June 30, 2025[62] Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares This section lists substantial shareholders' interests and short positions in the company's shares and underlying shares as of June 30, 2025 Substantial Shareholders' Interests in the Company's Shares (As of June 30, 2025) | Name of Shareholder | Capacity/Nature of Interest | Number of Shares Held | Approximate Percentage of Shareholding in the Company | | :--- | :--- | :--- | :--- | | One Ideal Limited | Beneficial interest | 164,171,263 | 32.83% | | Now Wealth Limited | Beneficial interest | 164,171,263 | 32.83% | | Lady Jing Limited | Beneficial interest | 164,171,263 | 32.83% | | LXJ Limited | Beneficial interest | 164,171,263 | 32.83% | | TCT (BVI) Limited | Beneficial interest | 328,342,526 | 65.66% | | THE CORE TRUST COMPANY LIMITED | Trustee | 328,342,526 | 65.66% | | Huangshan Jiantou Private Equity Fund Management Co., Ltd. | Beneficial interest | 28,570,000 | 5.71% | - The interests of TCT (BVI) Limited and THE CORE TRUST COMPANY LIMITED represent the aggregate shareholdings of individual trusts established by Mr. Lu Bo and Ms. Lu Xiaojing, respectively[64] Share Incentive Scheme This section outlines the post-IPO share option scheme adopted on June 24, 2024, detailing maximum shares, participant limits, and vesting period - The company adopted a post-IPO share option scheme on June 24, 2024, aiming to provide eligible participants with opportunities to acquire ownership interests in the company and encourage them to enhance the company and share price[67][68] - Under the scheme, the maximum number of share options that can be granted is 50,000,000, representing 10% of the issued shares as of June 30, 2025[67][69] - The vesting period for share options is generally not less than 12 months, and the subscription price shall not be less than the highest of the closing price on the grant date, the average closing price for the five business days immediately preceding the grant date, and the nominal value of the shares[70][71] - No share options were granted, nor were any new shares issued for the grant of share options and awards during the reporting period and up to the date of this interim report[73] Compliance with Corporate Governance Code This section states the company's compliance with the Corporate Governance Code, noting one deviation where Chairman and CEO roles are combined - The company has adopted the principles and code provisions of the Corporate Governance Code as the basis for its corporate governance practices and has complied with all applicable code provisions during the reporting period and up to the date of this interim report[75][76] - There is one deviation from Code Provision C.2.1 of the Corporate Governance Code, where the roles of Chairman and Chief Executive Officer are combined and held by Mr. Lu Bo[76] - The Board believes that, given Mr. Lu Bo's experience and understanding of the business, this arrangement facilitates the effective execution of strategic initiatives and information flow, and all significant decisions are made after consulting Board members, ensuring that the balance of power is not undermined[76] Audit Committee and Review of Interim Results This section details the Audit Committee's composition and its review of the unaudited interim financial information, noting no independent auditor review - The Audit Committee comprises three independent non-executive directors: Mr. Jiang Li (Chairman), Mr. Bao Xiaofeng, and Mr. Shen Cheng[80] - The Audit Committee has discussed and reviewed the Group's unaudited condensed consolidated financial information for the reporting period, concluding that the interim results comply with applicable accounting standards, laws, and regulations, and are appropriately disclosed[80] - The interim results have not been reviewed by the company's independent auditor[80] Events After the Reporting Period This section discloses the resignation of Mr. Fu Cong as CFO and Joint Company Secretary on July 31, 2025, with no other significant subsequent events - Mr. Fu Cong resigned as the company's Chief Financial Officer and Joint Company Secretary on July 31, 2025[81] - Save for the aforementioned, no other significant subsequent events occurred after the reporting period up to the date of this interim report[82] Changes in Board and Directors' Information This section reports changes in the Board of Directors, including director resignations, appointments, and Nomination Committee changes - Independent non-executive director Mr. Tu Shenwei resigned on May 19, 2025, and Mr. Jiang Li was appointed independent non-executive director, Chairman of the Audit Committee, Chairman of the Remuneration Committee, and member of the Nomination Committee on the same day[87] - The Chairman of the Nomination Committee changed from Mr. Lu Bo to Mr. Shen Cheng, and Ms. Lu Xiaojing was appointed a member of the Nomination Committee, both effective from June 30, 2025[88] Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income This chapter presents the condensed consolidated statement of profit or loss and other comprehensive income for H1 2025 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (RMB thousands) | Indicator | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Revenue | 151,799 | 224,894 | | Cost of sales | (111,889) | (149,640) | | Gross profit | 39,910 | 75,254 | | Other income and gains, net | 1,548 | 3,191 | | Selling expenses | (14,948) | (14,427) | | Administrative expenses | (35,408) | (21,448) | | Research and development expenses | (22,473) | (14,723) | | (Loss)/Profit before tax | (37,861) | 15,515 | | Income tax expense | (199) | (3,990) | | (Loss)/Profit for the period | (38,060) | 11,525 | | (Loss)/Profit for the period attributable to owners of the Company | (37,967) | 11,525 | | Basic and diluted (loss)/earnings per share (RMB cents) | (7.59) | 3.07 | - The company shifted from profit to net loss in the first half of 2025, primarily due to a significant decline in revenue and gross profit, coupled with increased selling, administrative, and R&D expenses[93] Condensed Consolidated Statement of Financial Position This chapter presents the condensed consolidated statement of financial position, providing a snapshot of assets, liabilities, and equity as of June 30, 2025 Condensed Consolidated Statement of Financial Position (RMB thousands) | Indicator | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Non-current assets | 166,295 | 141,280 | | Current assets | 612,050 | 585,670 | | Current liabilities | 343,727 | 331,200 | | Net current assets | 268,323 | 254,470 | | Non-current liabilities | 86,696 | 7,404 | | Net assets | 347,922 | 388,346 | | Total equity | 347,922 | 388,346 | - Non-current liabilities significantly increased, primarily due to new non-current bank and other borrowings, leading to higher total liabilities and reduced total equity[95] - The increase in property, plant and equipment and right-of-use assets was the primary reason for the growth in non-current assets[94] Condensed Consolidated Statement of Changes in Equity This chapter presents the condensed consolidated statement of changes in equity, illustrating movements in equity attributable to owners for H1 2025 - For the six months ended June 30, 2025, equity attributable to owners of the company decreased from RMB 388,046 thousand at the beginning of the period to RMB 330,085 thousand at the end of the period[96] - The primary reasons for the equity decrease were a loss for the period of RMB 37,967 thousand and dividends declared and paid of RMB 20,000 thousand, partially offset by contributions from non-controlling shareholders of RMB 17,630 thousand[96] Condensed Consolidated Statement of Cash Flows This chapter presents the condensed consolidated statement of cash flows, detailing cash flows from operating, investing, and financing activities for H1 2025 Condensed Consolidated Statement of Cash Flows (RMB thousands) | Cash Flow Category | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Net cash used in operating activities | (96,685) | (11,257) | | Net cash used in investing activities | (16,740) | (2,974) | | Net cash from/(used in) financing activities | 76,383 | (9,752) | | Net decrease in cash and cash equivalents | (37,042) | (23,983) | | Cash and bank balances at end of period | 92,732 | 21,670 | - Cash outflow from operating activities significantly increased, cash outflow from investing activities also rose, but financing activities turned into a net inflow due to new bank borrowings[97] - Cash and bank balances at the end of the period were RMB 92,732 thousand, a decrease from the beginning of the period[97] Notes to the Condensed Consolidated Financial Statements This chapter provides detailed explanatory notes to the condensed consolidated financial statements, covering general information, basis of preparation, and specific financial line items General Information This section states that Ruichang International Holding Limited is an investment holding company engaged in manufacturing and selling petroleum refining and petrochemical equipment - The company is an investment holding company incorporated in the Cayman Islands, primarily engaged in the manufacturing and sale of petroleum refining and petrochemical equipment[98] - The company's shares have been listed on the Main Board of The Stock Exchange of Hong Kong Limited since July 10, 2024[98] Basis of Preparation This section explains that the unaudited condensed consolidated financial statements are prepared in accordance with HKAS 34 and HKEX Listing Rules - The unaudited condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and the requirements of the Listing Rules[99] - The accounting policies and methods of computation used are consistent with those adopted in the annual financial statements for the year ended December 31, 2024[99] Adoption of New and Revised Hong Kong Financial Reporting Standards This section notes the Group's adoption of all new and revised HKFRSs effective January 1, 2025, with no significant changes to accounting policies - The Group has adopted all new and revised Hong Kong Financial Reporting Standards effective for accounting periods beginning on January 1, 2025[100] - The adoption of these new and revised Hong Kong Financial Reporting Standards has not resulted in any significant changes to the Group's accounting policies or the amounts reported for the current and prior periods in the consolidated financial statements[100] Fair Value Measurement This section details the Group's fair value measurements using a three-level hierarchy for financial assets - Fair value measurements utilize a three-level fair value hierarchy, comprising Level 1 (quoted prices in active markets), Level 2 (observable inputs), and Level 3 (unobservable inputs)[101][102][103] Fair Value Hierarchy Disclosure (As of June 30, 2025, RMB thousands) | Description | Level 1 | Level 2 | Level 3 | Total | | :--- | :--- | :--- | :--- | :--- | | Financial assets at fair value through profit or loss — Funds | – | 9,262 | – | 9,262 | | Financial assets at fair value through other comprehensive income — Unlisted equity investments | – | – | 18,594 | 18,594 | - The valuation technique for unlisted equity investments is the proportionate share of net assets; if the net assets of the relevant investment increase/decrease by 5%, their carrying amount would increase/decrease by RMB 930 thousand, respectively[111] Revenue This section provides a breakdown of the Group's revenue for two interim periods, primarily from equipment manufacturing and sales Revenue from Contracts with Customers (RMB thousands) | Product Category | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Sulfur Recovery and VOC Incineration Equipment | 39,621 | 73,112 | | Catalytic Cracking Equipment | 53,079 | 132,673 | | Process Burners | 37,580 | 16,552 | | Heat Exchangers | 21,519 | 2,557 | | Total | 151,799 | 224,894 | - Revenue recognized from contract liabilities at the beginning of the period was RMB 7,990 thousand in H1 2025, compared to RMB 59,191 thousand in H1 2024[112] - Performance obligations are satisfied upon customer acceptance of the relevant products, with payments generally due within 30 to 90 days after delivery[113] Segment Information This section states that the Group primarily manufactures and sells petroleum refining and petrochemical equipment to mainland China customers - The Group is primarily engaged in the manufacturing and sale of petroleum refining and petrochemical equipment to customers in mainland China, and no financial information for separate operating segments is presented[114] - As substantially all revenue is derived from mainland China and all non-current assets are located in mainland China, no geographical information is presented[115] Other Income and Gains, Net This section presents the Group's other income and gains, net, which decreased primarily due to reduced government grants Other Income and Gains, Net (RMB thousands) | Item | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Government grants | 445 | 2,716 | | Interest income | 668 | 132 | | Net rental income | – | 47 | | Others | 435 | 296 | | Total | 1,548 | 3,191 | - The decrease in government grants was the primary reason for the decline in other income and gains, net, with these grants mainly subsidizing high-tech enterprises[117] Finance Costs This section discloses the Group's finance costs, which decreased mainly due to lower interest on bank and other borrowings Finance Costs (RMB thousands) | Item | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Interest on bank and other borrowings | 2,297 | 2,748 | | Interest on lease liabilities | 175 | 88 | | Total | 2,472 | 2,836 | - The decrease in finance costs was primarily due to a reduction in the Group's bank and other borrowings in H1 2025[41] Income Tax Expense This section details the Group's income tax expense, which significantly decreased due to reduced taxable income of Chinese subsidiaries Income Tax Expense (RMB thousands) | Item | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Current income tax — Mainland China | 199 | 3,497 | | Withholding tax | – | 1,000 | | Deferred income tax | – | (507) | | Total | 199 | 3,990 | - The decrease in income tax expense was primarily due to a reduction in the taxable income of Chinese subsidiaries[42] - Luoyang Ruichang and Shanghai Ruicheer, as high-tech enterprises, are eligible for a preferential corporate income tax rate of 15%[123] - As of June 30, 2025, the Group had accumulated tax losses in China of RMB 120,188 thousand, but no deferred tax assets were recognized due to the unpredictability of future profit sources[125] Loss / Profit for the Period This section lists the key items impacting the Group's loss or profit for the period, reflecting their influence on overall profitability Key Items Affecting (Loss)/Profit for the Period (RMB thousands) | Item | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Cost of inventories sold | 103,721 | 146,668 | | Depreciation of property, plant and equipment | 3,529 | 3,154 | | Depreciation of right-of-use assets | 1,532 | 2,158 | | Amortisation of intangible assets | 400 | 208 | | Research and development costs | 22,473 | 14,723 | | Impairment losses on financial assets and contract assets | 3,993 | 1,969 | | Total staff costs (including directors' emoluments) | 38,905 | 31,118 | - Total staff costs (including directors' emoluments) increased from RMB 31,118 thousand in H1 2024 to RMB 38,905 thousand in H1 2025[126] Loss / Earnings Per Share This section calculates the basic (loss)/earnings per share attributable to owners, with no diluted (loss)/earnings per share presented Loss / Earnings Per Share (RMB thousands) | Indicator | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | (Loss)/Profit for the period attributable to owners of the Company for the purpose of calculating basic (loss)/earnings per share | (37,967) | 11,525 | | Number of ordinary shares for the purpose of calculating basic (loss)/earnings per share | 500,000,000 | 375,000,000 | | Basic and diluted (loss)/earnings per share (RMB cents) | (7.59) | 3.07 | - No diluted (loss)/earnings per share is presented for the six months ended June 30, 2025 and 2024, as there were no outstanding potential ordinary shares[127] Dividends This section reports the final dividend declared and paid for 2024, with no interim dividend recommended for the current reporting period - During the interim period, a final dividend of RMB 0.04 per share, totaling RMB 20,000 thousand, was declared to owners of the company for the year ended December 31, 2024[128] - The directors of the company do not recommend the payment of any interim dividend for the reporting period[129] Movements in Property and Equipment This section discloses the Group's acquisition of property and equipment and a transfer from investment properties - The Group acquired property and equipment of RMB 15,243 thousand in H1 2025, a significant increase compared to RMB 2,719 thousand in H1 2024[130] - During the interim period, RMB 4,098 thousand of property and equipment was transferred from investment properties[130] Investment Property This section states the market value of investment property as of April 30, 2024, and its depreciation impact - The market value of investment property was RMB 15,790 thousand as of April 30, 2024[131] - If these assets were accounted for at this valuation, an additional depreciation of RMB 158 thousand would be recognized in the consolidated statement of profit or loss and other comprehensive income for the year ended December 31, 2024[131] Trade and Bills Receivables This section details the Group's trade and bills receivables, providing an aging analysis and changes in impairment provisions Trade and Bills Receivables (RMB thousands) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Trade receivables (net of impairment allowance) | 259,138 | 236,909 | | Bills receivables | 6,463 | 15,697 | | Total | 265,601 | 252,606 | Aging Analysis of Trade Receivables (As of June 30, 2025, RMB thousands) | Aging | Amount | | :--- | :--- | | Within 90 days | 91,518 | | 91 to 180 days | 6,115 | | 181 to 365 days | 123,725 | | Over 1 year but not exceeding 2 years | 25,019 | | Over 2 years but not exceeding 3 years | 10,799 | | Over 3 years but not exceeding 4 years | 1,962 | | Total | 259,138 | - Impairment allowance for trade receivables increased from RMB 16,908 thousand at the beginning of the period to RMB 19,971 thousand at the end of the period[135] Trade and Bills Payables This section lists the Group's trade and bills payables, providing an aging analysis and noting their interest-free nature Trade and Bills Payables (RMB thousands) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Trade payables | 104,355 | 134,786 | | Bills payables | 24,554 | 19,644 | | Total | 128,909 | 154,430 | Aging Analysis of Trade and Bills Payables (As of June 30, 2025, RMB thousands) | Aging | Amount | | :--- | :--- | | Within 90 days | 60,196 | | 91 to 180 days | 37,374 | | 181 to 365 days | 17,508 | | Over 1 year | 13,831 | | Total | 128,909 | - Trade payables are interest-free and are normally settled within a 60-day period[136] Bank and Other Borrowings This section details the Group's bank and other borrowings, including secured and unsecured loans and maturity profiles Bank and Other Borrowings (RMB thousands) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Secured loans | 119,700 | 99,800 | | Unsecured loans | 70,000 | 5,358 | | Total | 189,700 | 105,158 | | Current portion | (109,700) | (105,158) | | Non-current portion | 80,000 | – | Maturity Profile of Bank and Other Borrowings (As of June 30, 2025, RMB thousands) | Term | Amount | | :--- | :--- | | Within one year or on demand | 109,700 | | In the second year | – | | In the third to fifth years (inclusive) | 80,000 | | Total | 189,700 | - All borrowings are fixed-rate loans and are denominated in RMB[47] Share Capital This section states the company's authorized and issued share capital, which remained unchanged during the reporting period - The authorized share capital is 5,000,000,000 ordinary shares of USD 0.00001 each, totaling USD 50,000[139] - The issued and fully paid share capital is 500,000,000 ordinary shares of USD 0.00001 each, equivalent to RMB 35,671 thousand, and remained unchanged during the reporting period[139] Capital Commitments This section discloses the Group's capital commitments for property and equipment, which significantly decreased Capital Commitments (RMB thousands) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Property and equipment — contracted but not provided for | 372 | 11,194 | - Capital commitments for property and equipment significantly decreased, indicating a reduction in future capital expenditure pressure[140] Related Party Transactions This section identifies ultimate controlling shareholders and discloses non-trade balances and transactions with related parties - Mr. Lu Bo and Ms. Lu Xiaojing are the ultimate controlling shareholders of the Group[141] - As of June 30, 2025, amounts due from controlling shareholders were RMB 179 thousand[142] - Related party lease payments for the reporting period were RMB 83 thousand (H1 2024: RMB 57 thousand)[143]