英恒科技(01760) - 2025 - 中期财报

Company Information Board of Directors and Committees The company's board comprises executive and independent non-executive directors, supported by audit, remuneration, nomination, and ESG committees to ensure effective corporate governance - Executive directors include Mr. Lu Yingming (Chairman and Co-CEO), Mr. Chen Changyi (Co-CEO), Mr. Chen Ming, and Mr. Huang Xihua[3] - Independent non-executive directors include Mr. Jiang Yongwei (Chairman of Remuneration Committee), Mr. Xu Rongguo (Chairman of Audit Committee), and Ms. Han Shuting[3] - The company has four main committees: Audit, Remuneration, Nomination, and Environmental, Social and Governance, with board members serving in these roles[3] Company Basic Information The company is registered in the Cayman Islands, with its principal place of business in Hong Kong Science Park, maintaining relationships with major banks like Bank of China and Shanghai Bank, and its stock code is 1760 - Registered office in the Cayman Islands, with Hong Kong head office and principal place of business in Hong Kong Science Park, Pak Shek Kok, Shatin, New Territories[3] - Major bankers include Bank of China, Shanghai Bank, Bank of China (Hong Kong) Limited, BNP Paribas, Hang Seng Bank Limited, and The Hongkong and Shanghai Banking Corporation Limited[4] - The company's stock code is 1760, and its official website is www.intron-tech.com[4](index=4&type=chunk) Management Discussion and Analysis Overview In H1 2025, China's auto market saw 11.4% sales growth, driven by "trade-in" policies and NEV demand, despite intensified price wars impacting profit margins, while the Group achieved 5% revenue growth and launched the GRC1.0 high-performance controller for robotics - In H1 2025, China's automobile sales reached 15.653 million units, a year-on-year increase of 11.4%; new energy vehicle sales reached 6.937 million units, a year-on-year increase of 40.3%, accounting for 44.3% of total new car sales[6] - Intensified price competition in the automotive industry led to a profit margin of 4.3% in 2024, further declining to 3.9% in Q1 2025[6] - The Group's revenue increased by 5% year-on-year, achieving a breakthrough in the robotics industry with the launch of the GRC1.0 high-performance controller solution, integrating automotive electronics experience into robotics[6][7][9] Business Review In H1 2025, despite a weak and competitive automotive electronics market, the Group achieved robust business growth with total revenue up 5% to RMB 2.97 billion, driven by strong performance in safety systems and cloud servers, though gross margin declined to 13.5% due to price wars, resulting in a 50% decrease in net profit to RMB 49.7 million 2025 H1 Revenue Breakdown by Product Category | Product Category | 2025 Revenue (RMB thousand) | 2024 Revenue (RMB thousand) | Year-on-year Change (%) | | :------- | :--------------------- | :--------------------- | :----------- | | New Energy | 1,437,848 | 1,452,608 | -1% | | Body Systems | 314,404 | 422,691 | -26% | | Safety Systems | 451,568 | 355,382 | 27% | | Powertrain Systems | 185,189 | 161,112 | 15% | | Intelligent Driving & Connectivity | 230,548 | 229,860 | 0% | | Cloud Servers | 255,444 | 108,783 | 135% | | Services & Others | 91,321 | 104,595 | -13% | | Total | 2,966,322 | 2,835,031 | 5% | 2025 H1 Gross Profit and Gross Margin | Metric | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Year-on-year Change (%) | | :----- | :-------------------------- | :-------------------------- | :----------- | | Gross Profit | 401.0 | 452.0 | -11% | | Gross Margin | 13.5% | 15.9% | -2.4 ppts | - Profit attributable to shareholders for the period was RMB 49.7 million, compared to RMB 97.7 million in the same period last year, with a net profit margin of 1.6%[15] - Added 112 new mass production projects, including 10 involving export models or overseas clients, expanding client base to major Japanese and European automakers and Tier 1 suppliers[15] Core Solutions for New Energy Vehicles New energy sector revenue remained flat at RMB 1.438 billion, accounting for 48.5% of total revenue, with continued growth in MCU and BMS, and the "motor controller power brick" achieving industry-leading levels, with ongoing efforts to enhance mass production and develop higher power density solutions - New energy business revenue was RMB 1,437.8 million, accounting for 48.5% of total revenue, similar to the same period last year[17] - The core component "motor controller power brick" has reached industry-leading levels in key indicators such as power density, integration, and reliability, with mass production in the ramp-up phase[17] - The Group will continue to develop higher power density solutions, including cost-effective hybrid solutions combining silicon carbide and silicon[17] Body/Safety/Powertrain System Solutions Body system revenue decreased by 26% to RMB 314 million due to market competition and strategic choices, while powertrain solutions grew 15% benefiting from commercial vehicle electrification, and safety system solutions increased 27% driven by active suspension and new braking/steering projects, with increased R&D planned for synergy with intelligent driving systems - Body system business revenue decreased by 26% to RMB 314.4 million, accounting for 10.6% of total revenue, primarily due to market competition and the Group's strategic choices regarding low-margin businesses[18] - Powertrain system solutions grew by 15%, accounting for 6.2% of the Group's total revenue, benefiting from the growth in the commercial vehicle market and electrification progress[18] - Safety system solutions recorded a 27% increase in revenue, accounting for 15.2% of the Group's total revenue, mainly driven by increased adoption of active suspension systems and mass production of new braking and steering projects[18] Intelligent Driving and Connectivity Solutions Intelligent driving and connectivity business revenue remained flat at RMB 231 million, accounting for 7.8% of total revenue, with the Group launching its first L3-capable system solution, actively developing Horizon Journey® 6 related solutions, releasing pre-fusion perception solutions, and introducing the MADC4.0 next-generation system-level domain controller based on Journey® 6E/M platforms to enhance intelligent driving technology and market competitiveness - Intelligent driving and connectivity business revenue was RMB 230.5 million, accounting for 7.8% of total revenue, consistent with the same period last year[20] - The Group has launched its first L3-capable system solution and plans to optimize its cost-effectiveness for lower-cost vehicle models[20] - Actively investing in the development of Horizon Journey® 6 related solutions, releasing pre-fusion perception solutions based on Journey® 6, and introducing the MADC4.0 next-generation system-level domain controller solution, supporting L2+ advanced driving assistance functions[20][21] Cloud Server Related Solutions Cloud server related solutions business revenue increased by 135% to RMB 255 million, primarily driven by growing customer demand for AI services and private server/cloud infrastructure, with the Group continuing to strengthen R&D investment in core cloud computing technologies - Cloud server related business revenue increased by 135% to RMB 255.4 million[22] - The main growth drivers are customer demand for AI services and the establishment of private servers and private clouds[22] Research and Development and Group Development R&D is central to the Group's strategy, with H1 2025 R&D expenses at RMB 220 million (7.4% of revenue) and 950 R&D personnel (70.9% of total staff), as the Group collaborates with eSOL to enhance automotive electronics testing, secures multiple awards in chassis and safety systems, and achieves a breakthrough in robotics with the GRC1.0 high-performance controller, anticipating high growth in robotics solutions revenue - In H1 2025, R&D expenses were RMB 219.9 million, accounting for approximately 7.4% of the Group's revenue, with 950 R&D personnel, representing 70.9% of the total workforce[23] - The Group holds 394 patents and 329 software copyrights, with an additional 267 patents pending[23] - The Group continues to advance its ESG initiatives, setting greenhouse gas emission reduction targets and maintaining stable performance across multiple ESG rating agencies[24] R&D Progress in Automotive Sector The Group partnered with eSOL Co., Ltd. to integrate its high-security RTOS platform into automotive electronics, enhanced testing capabilities through CNAS re-accreditation, secured multiple project awards in chassis and safety systems, and completed the second phase of the Nantong R&D base to boost power brick product prototyping and small-batch delivery, targeting million-unit scale delivery by 2027 - Established a strategic partnership with eSOL Co., Ltd. to integrate its high-security and scalable Real-Time Operating System (RTOS) platform products into the Group's automotive electronics and software solutions[25] - The testing and validation center passed the re-assessment by the China National Accreditation Service for Conformity Assessment (CNAS), possessing various testing capabilities including electromagnetic compatibility, electrical performance, and environmental reliability[27] - The second phase of the Nantong R&D base renovation was completed, adding approximately 3,000 square meters of usable area, establishing complete prototyping and small-batch delivery capabilities for power brick products, targeting million-unit scale delivery of inverter bricks and power modules by 2027[28] R&D Progress in Robotics Sector The Group strategically advanced its robotics initiatives, with the Hong Kong R&D center accelerating solution deployment and international expansion, achieving breakthroughs in multi-modal perception, fusion localization, and joint module drive control, and successfully developing the GRC1.0 high-performance controller based on the Digua Robot RDK S100 platform in H1 2025, which is expected to drive high growth in robotics-related solutions revenue - The Hong Kong R&D center is accelerating the deployment of robotics solutions and international business expansion, achieving significant research and development results in multi-modal perception, fusion localization, and joint module drive and control[29] - Successfully developed the GRC1.0 high-performance controller solution, designed for embodied intelligent robots and industrial automation scenarios, featuring a high-reliability system architecture, powerful real-time control capabilities, integration of advanced technologies, and mass production-friendly design[29][33] - The introduction of the GRC1.0 controller significantly lowers R&D barriers and supply chain management costs for robot manufacturers, with robotics-related solutions expected to maintain high growth in the Group's revenue going forward[31] Outlook In the second half, China's NEV market will continue to grow, with emerging markets offering opportunities for Chinese automakers to expand globally, as the Group commits to technological innovation, increased investment in NEV and autonomous driving technologies, and the integration of AI with cloud server technologies, anticipating over 100 new mass production projects across various domains, including R&D for export markets, to solidify its domestic position and accelerate international expansion for long-term sustainable growth - In the second half, China's new energy vehicle penetration rate is expected to further increase, with emerging markets such as Southeast Asia and Latin America providing growth opportunities for Chinese automakers expanding overseas[32] - The Group will increase investment in new energy vehicles and autonomous driving technologies, and collaborate with chip manufacturers and cloud service providers to build comprehensive solutions, accelerating service upgrades and transformation[32] - The number of new mass production projects is expected to exceed 100, covering chassis systems, ADAS, MCU, BMS, thermal management technology, in-car wireless charging units, and electronic and electrical architecture (EEA), with some projects developed for export markets or overseas customer needs[37][38] Financial Review In H1 2025, the Group's total revenue grew 5% year-on-year to RMB 2.966 billion, driven by strong performance in safety systems and cloud servers, while gross profit decreased 11% to RMB 401 million, with gross margin falling to 13.5% due to price competition, and other income/gains increased 55% to RMB 19.2 million, primarily from government grants, resulting in a 50% decrease in profit for the period to RMB 48.0 million, impacted by lower gross profit and increased exchange losses, though finance costs decreased 5% due to loan structure adjustments 2025 H1 Revenue, Gross Profit and Gross Margin | Metric | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Year-on-year Change (%) | | :----- | :-------------------------- | :-------------------------- | :----------- | | Total Revenue | 2,966,322 | 2,835,031 | 5% | | Gross Profit | 401,046 | 451,966 | -11% | | Gross Margin | 13.5% | 15.9% | -2.4 ppts | 2025 H1 Other Income and Gains | Metric | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Year-on-year Change (%) | | :----------- | :-------------------------- | :-------------------------- | :----------- | | Other Income and Gains | 19,177 | 12,340 | 55% | 2025 H1 Finance Costs and Profit for the Period | Metric | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Year-on-year Change (%) | | :------- | :-------------------------- | :-------------------------- | :----------- | | Finance Costs | 53,841 | 56,932 | -5% | | Profit for the Period | 47,975 | 95,093 | -50% | Liquidity and Financial Resources As of June 30, 2025, the Group maintained a sound liquidity position with cash and cash equivalents of RMB 679 million and net current assets of RMB 1.376 billion, while the net debt-to-equity ratio decreased to 47%, with capital expenditures primarily allocated to R&D equipment and infrastructure 2025 H1 Liquidity Position | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--------------- | :----------------------------- | :------------------------------ | | Cash and Cash Equivalents | 678.5 | 916.2 | | Net Current Assets | 1,375.6 | 1,716.4 | | Net Debt-to-Equity Ratio | 47% | 50% | - Capital expenditure for the first half of the year was RMB 36.2 million, mainly for increasing R&D equipment and improving R&D infrastructure[53] - Outstanding bank loans amounted to RMB 1,636.3 million, with pledged deposits of RMB 129.6 million as collateral[54] Interim Dividend The Board does not recommend the payment of an interim dividend for the review period - The Directors do not recommend the payment of a dividend for the review period (six months ended June 30, 2024: nil)[55] Material Events After Reporting Period The Group had no material events requiring disclosure after the reporting period - The Group had no material events after the reporting period requiring disclosure[56] Capital Commitments As of June 30, 2025, the Group's contracted but unprovided capital commitments amounted to RMB 23.9 million, primarily for patents, plant, and machinery Capital Commitments | Item | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :------------- | :----------------------------- | :------------------------------ | | Contracted but not provided for | 23.9 | 7.2 | Significant Investments, Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures During the review period, the Group did not undertake any significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures - During the review period, the Group did not undertake any significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures[59] Contingent Liabilities As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[60] Exchange Rate Risk Operating primarily in China, the Group faces foreign exchange risk from RMB fluctuations against other currencies, which it manages by reducing net foreign currency positions, adjusting customer prices, and considering forward foreign exchange contracts - The Group primarily operates in China and is exposed to foreign exchange risk arising from fluctuations in exchange rates between RMB and other currencies used for business transactions[61] - The Group manages and mitigates losses from foreign currency exchange rate fluctuations by reducing net foreign currency positions, adjusting customer prices to transfer costs, and considering the use of forward foreign exchange contracts when necessary[61] Employees and Remuneration Policy As of June 30, 2025, the Group employed 1,340 staff with total employee costs of RMB 252.4 million (8.5% of revenue), offering competitive remuneration including basic salary plus performance bonuses, specialized training, and a share option scheme for incentives, along with retirement benefit plans for Hong Kong and mainland China employees - As of June 30, 2025, the Group employed 1,340 staff, with total employee costs of RMB 252.4 million, accounting for 8.5% of the period's revenue[62] - The Group offers competitive basic salaries, annual performance bonuses, and specialized training, and incentivizes employees through a share option scheme[62][64] - As of June 30, 2025, 70,621,550 share options were outstanding under the share option scheme[64] Use of Proceeds from Global Offering The company's 2018 global offering yielded net proceeds of HKD 767 million (approximately RMB 655 million), with most funds utilized as planned for R&D expansion, infrastructure, and general working capital, and the remaining RMB 47.0 million for "acquiring R&D capabilities" is expected to be fully utilized by the end of 2026 - Net proceeds from the global offering amounted to HKD 766.7 million (equivalent to RMB 655.4 million)[65] Use of Proceeds from Global Offering and Utilization Status | Use of Proceeds | Planned Use (RMB million) | % of Total Net Proceeds | Actual Utilization as of June 30, 2025 (RMB million) | Unutilized Net Proceeds as of June 30, 2025 (RMB million) | Expected Timeline for Utilizing Remaining Unutilized Net Proceeds | | :----------- | :---------------------- | :--------------------- | :--------------------------------------------- | :--------------------------------------------- | :--------------------------------------- | | Expanding R&D capabilities | 196.6 | 30 | 196.6 | 0 | Not applicable | | Strengthening R&D infrastructure | 196.6 | 30 | 196.6 | 0 | Not applicable | | Acquiring R&D capabilities | 196.6 | 30 | 149.6 | 47.0 | Expected to be fully utilized by end of 2026 | | General working capital | 65.6 | 10 | 65.6 | 0 | Not applicable | | Total | 655.4 | 100 | 608.4 | 47.0 | | Purchase, Sale or Redemption of the Company's Listed Securities The company or its subsidiaries did not purchase, sell, or redeem any of its listed securities during the review period - The company or its subsidiaries did not purchase, sell, or redeem any of its listed securities during the review period[68] Disclosure of Interests Interests and Short Positions of Substantial Shareholders in Shares and Underlying Shares As of June 30, 2025, Magnate Era Limited, Treasure Map Ventures Limited, Heroic Mind Limited, and Zenith Benefit Investments Limited were corporate controlling shareholders, holding varying percentages of long positions in the company's shares, with Mr. Lu Yingming and Mr. Chen Changyi indirectly holding shares through these controlled corporations Interests of Substantial Shareholders in Shares | Shareholder Name | Nature of Interest | Number of Securities Held (L) | Approximate Percentage of Shareholding (%) | | :----------------------- | :------- | :--------------- | :------------------- | | Magnate Era Limited | Beneficial owner | 525,000,000 | 48.26% | | Treasure Map Ventures Limited | Beneficial owner | 75,000,000 | 6.89% | | Heroic Mind Limited | Beneficial owner | 75,000,000 | 6.89% | | Zenith Benefit Investments Limited | Beneficial owner | 43,970,000 | 4.04% | - Mr. Lu Yingming and Mr. Chen Changyi each beneficially own 50% of the shares in Magnate Era and Zenith Benefit, respectively, while Mr. Lu also beneficially owns 100% of Treasure Map, and Mr. Chen beneficially owns 100% of Heroic Mind[71] Interests and Short Positions of Directors and Chief Executive in Shares, Underlying Shares and Debentures of the Company or its Associated Corporations As of June 30, 2025, Mr. Lu Yingming and Mr. Chen Changyi, along with their spouses, indirectly held 59.20% long positions in the company's ordinary shares through controlled corporations, while Mr. Chen Ming, Mr. Huang Xihua, Mr. Xu Rongguo, and Mr. Jiang Yongwei held minor beneficial shareholdings, and several directors held share options to subscribe for company shares Directors' and Chief Executive's Long Positions in Ordinary Shares | Shareholder Name | Nature of Interest | Number of Shares Held (L) | Approximate Percentage (%) | | :------- | :--------- | :--------------- | :------------- | | Mr. Lu | Interest in controlled corporation | 643,970,000 | 59.20% | | Mr. Chen | Interest in controlled corporation | 643,970,000 | 59.20% | | Ms. Zhang Dan | Spouse's interest | 643,970,000 | 59.20% | | Ms. Zhang Hui | Spouse's interest | 643,970,000 | 59.20% | | Mr. Chen Ming | Beneficial owner | 4,750,000 | 0.44% | | Mr. Huang Xihua | Beneficial owner | 3,760,000 | 0.35% | | Mr. Xu Rongguo | Beneficial owner | 90,000 | 0.01% | | Mr. Jiang Yongwei | Beneficial owner | 90,000 | 0.01% | Share Options Held by Directors | Name | Grant Date | Exercise Period | Balance as of June 30, 2025 (shares) | Exercise Price per Share (HKD) | | :------- | :----------- | :----------------- | :----------------------- | :---------------- | | Mr. Chen Ming | January 21, 2019 | January 1, 2020 to December 31, 2025 | 1,550,000 | 2.662 | | | May 18, 2021 | June 1, 2022 to May 31, 2028 | 200,000 | 4.25 | | Mr. Huang Xihua | January 21, 2019 | January 1, 2020 to December 31, 2025 | 1,500,000 | 2.662 | | | May 18, 2021 | June 1, 2022 to May 31, 2028 | 160,000 | 4.25 | | Mr. Jiang Yongwei | January 21, 2019 | January 1, 2020 to December 31, 2025 | 50,000 | 2.662 | | | May 18, 2021 | June 1, 2022 to May 31, 2028 | 40,000 | 4.25 | | Mr. Xu Rongguo | January 21, 2019 | January 1, 2020 to December 31, 2025 | 50,000 | 2.662 | | | May 18, 2021 | June 1, 2022 to May 31, 2028 | 40,000 | 4.25 | Share Option Scheme The company's 2018 share option scheme terminated on May 27, 2024, with 70,621,550 unexercised options remaining, while a new 2024 share scheme was approved on May 27, 2024, under which no options or awards have been granted as of June 30, 2025, but 108,783,840 shares are available for grant - The 2018 Share Option Scheme terminated on May 27, 2024, but as of June 30, 2025, 70,621,550 share options remained unexercised[78] - The 2024 Share Scheme was approved by shareholders on May 27, 2024, and as of June 30, 2025, no share options or awards have been granted under this scheme[79] - Under the 2024 Share Scheme, the number of share options and awards available for grant at the beginning and end of the period was 108,783,840[79] Details of Unexercised Share Options under 2018 Share Option Scheme | Category | Grant Date | Exercise Period | Balance as of January 1, 2025 (shares) | Lapsed/Forfeited during the Period (shares) | Balance as of June 30, 2025 (shares) | Exercise Price per Share (HKD) | | :------------- | :----------- | :----------------- | :---------------------- | :-------------------- | :----------------------- | :---------------- | | Executive Directors | January 21, 2019 | January 1, 2020 to December 31, 2025 | 3,050,000 | – | 3,050,000 | 2.662 | | | May 18, 2021 | June 1, 2022 to May 31, 2028 | 360,000 | – | 360,000 | 4.25 | | Independent Non-executive Directors | January 21, 2019 | January 1, 2020 to December 31, 2025 | 100,000 | – | 100,000 | 2.662 | | | May 18, 2021 | June 1, 2022 to May 31, 2028 | 80,000 | – | 80,000 | 4.25 | | Employees | January 21, 2019 | January 1, 2020 to December 31, 2025 | 18,596,550 | 25,000 | 18,571,550 | 2.662 | | | September 30, 2020 | October 1, 2021 to September 30, 2027 | 2,925,000 | 75,000 | 2,850,000 | 2.810 | | | May 18, 2021 | June 1, 2022 to May 31, 2028 | 19,425,000 | 200,000 | 19,225,000 | 4.25 | | | November 25, 2022 | December 1, 2023 to May 30, 2029 | 11,240,000 | 900,000 | 10,340,000 | 4.324 | | | September 20, 2023 | October 1, 2024 to September 30, 2030 | 16,425,000 | 380,000 | 16,045,000 | 3.364 | | Total | | | 72,201,550 | 1,580,000 | 70,621,550 | | Other Information Corporate Governance Practices The company is committed to high corporate governance standards and has adopted the Corporate Governance Code, with the Board believing that the Chairman also serving as Co-CEO enhances decision-making efficiency, despite deviating from Code Provision C.2.1, due to appropriate checks and balances from independent non-executive directors - The company has adopted the code provisions of the Corporate Governance Code set out in Appendix C1 to the Listing Rules[85] - Mr. Lu Yingming serves as both the Chairman and Co-Chief Executive Officer of the company, which deviates from Code Provision C.2.1 of the Corporate Governance Code, but the Board believes this arrangement enhances decision-making and execution efficiency, with appropriate checks and balances in place[85] Compliance with the Model Code for Securities Transactions by Directors The company has adopted written guidelines no less exacting than the Model Code under the Listing Rules, and all directors confirmed compliance with both the code and guidelines during the review period and up to the report date - The company has adopted written guidelines on terms no less exacting than the Model Code set out in Appendix C3 to the Listing Rules[87] - All Directors have confirmed their compliance with the Model Code and the written guidelines throughout the review period and up to the date of this report[87] Specific Performance Obligations of Controlling Shareholders under Financing Agreements The company entered into two financing agreements (Financing I and Financing II) with a syndicate for up to USD 180 million, which stipulate that lenders can cancel commitments and demand immediate repayment if ultimate controlling shareholders Mr. Lu Yingming and Mr. Chen Changyi collectively cease to beneficially own or control at least 51% of the company's or guarantor's issued share capital, an obligation that remains in effect as of the report date, with the two ultimate controlling shareholders jointly owning approximately 66% of the company's issued share capital - The company entered into Financing Agreement I (up to USD 60 million) and Financing Agreement II (up to USD 120 million) with a syndicate, with one purpose of Financing II being to refinance Financing Agreement I[88][90] - The financing agreements stipulate that if the ultimate controlling shareholders, Mr. Lu Yingming and Mr. Chen Changyi, collectively cease to directly or indirectly beneficially own or control at least 51% of the issued share capital or control of the company or the guarantor, the lenders may cancel the loan commitments and demand immediate repayment of all outstanding amounts[88][90] - As of the date of this report, Mr. Lu Yingming and Mr. Chen Changyi jointly own approximately 66% of the company's issued share capital, and this specific performance obligation remains in effect[92][93] Review by Audit Committee The Audit Committee, composed of three independent non-executive directors with Mr. Xu Rongguo as chairman possessing financial expertise, has reviewed the Group's accounting principles, internal controls, and unaudited condensed consolidated interim financial statements, deeming them compliant with relevant accounting standards, rules, and regulations - The Audit Committee comprises three independent non-executive directors, with Mr. Xu Rongguo serving as chairman, possessing financial professional qualifications and experience in compliance with the Listing Rules[94] - The Committee has reviewed the Group's accounting principles, internal controls, and the unaudited condensed consolidated interim financial statements, deeming them compliant with relevant accounting standards, rules, and regulations[94] Appointment of New Director Ms. Han Shuting was appointed as an independent non-executive director of the company, effective December 1, 2024, and has confirmed her understanding of her responsibilities as a director - Ms. Han Shuting was appointed as an independent non-executive director of the company, effective December 1, 2024[95] - Ms. Han Shuting has confirmed her understanding of her responsibilities as a director of the company[95] Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, the Group's revenue was RMB 2.966 billion, a 5% year-on-year increase, while gross profit was RMB 401 million, down 11%, and profit for the period significantly decreased by 50% to RMB 47.98 million, with basic and diluted earnings per share both at RMB 4.57 cents Key Data from Consolidated Statement of Profit or Loss | Metric | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Change (%) | | :------------- | :-------------------------- | :-------------------------- | :------- | | Revenue | 2,966,322 | 2,835,031 | 5% | | Cost of sales | (2,565,276) | (2,383,065) | 7.6% | | Gross profit | 401,046 | 451,966 | -11.3% | | Other income and gains | 19,177 | 12,340 | 55.4% | | Selling and distribution expenses | (47,995) | (47,971) | 0.05% | | Administrative expenses | (256,328) | (248,806) | 3.0% | | Other expenses | (30,674) | (29,212) | 5.0% | | Finance costs | (53,841) | (56,932) | -5.4% | | Profit before tax | 31,441 | 81,693 | -61.5% | | Income tax credit | 16,534 | 13,400 | 23.4% | | Profit for the period | 47,975 | 95,093 | -49.5% | | Attributable to owners of the parent | 49,740 | 97,678 | -49.1% | | Non-controlling interests | (1,765) | (2,585) | -31.7% | | Basic earnings per share | RMB 4.57 cents | RMB 8.98 cents | -49.1% | | Diluted earnings per share | RMB 4.57 cents | RMB 8.98 cents | -49.1% | Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, the Group's profit for the period was RMB 47.98 million, with net other comprehensive income of RMB 5.80 million, primarily from exchange differences on translating foreign operations (RMB 17.50 million) partially offset by exchange differences on translating the company's accounts (RMB -11.70 million), resulting in total comprehensive income of RMB 53.77 million, a 42.3% year-on-year decrease Key Data from Consolidated Statement of Comprehensive Income | Metric | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Change (%) | | :--------------- | :-------------------------- | :-------------------------- | :------- | | Profit for the period | 47,975 | 95,093 | -49.5% | | Net other comprehensive income | 5,796 | (1,894) | N/A | | - Exchange differences on translating foreign operations | 17,499 | (7,918) | N/A | | - Exchange differences on translating the company's accounts | (11,703) | 6,024 | N/A | | Total comprehensive income for the period | 53,771 | 93,199 | -42.3% | | Attributable to owners of the parent | 55,536 | 95,784 | -42.0% | | Non-controlling interests | (1,765) | (2,585) | -31.7% | Consolidated Statement of Financial Position As of June 30, 2025, the Group's total non-current assets were RMB 1.113 billion, and total current assets were RMB 4.488 billion, including inventories of RMB 1.326 billion and trade and bills receivables of RMB 1.686 billion, while total current liabilities were RMB 3.113 billion, primarily comprising interest-bearing bank and other borrowings of RMB 1.636 billion, resulting in net assets of RMB 2.476 billion and equity attributable to owners of the parent of RMB 2.476 billion Key Data from Consolidated Statement of Financial Position | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--------------- | :-------------------------- | :-------------------------- | :------- | | Total non-current assets | 1,113,067 | 1,073,047 | 3.7% | | Total current assets | 4,488,321 | 5,037,226 | -10.9% | | - Inventories | 1,325,650 | 1,332,966 | -0.5% | | - Trade and bills receivables | 1,685,814 | 2,352,870 | -28.3% | | - Cash and cash equivalents | 678,485 | 916,208 | -25.9% | | Total current liabilities | 3,112,763 | 3,320,788 | -6.2% | | - Interest-bearing bank and other borrowings | 1,636,264 | 1,742,945 | -6.1% | | Net current assets | 1,375,558 | 1,716,438 | -19.9% | | Net assets | 2,476,023 | 2,481,266 | -0.2% | | Equity attributable to owners of the parent | 2,476,334 | 2,479,826 | -0.1% | Consolidated Statement of Changes in Equity For the six months ended June 30, 2025, the Group's total equity slightly decreased from RMB 2.481 billion at the beginning of the period to RMB 2.476 billion, with profit for the period at RMB 49.74 million and other comprehensive income at RMB 5.80 million, but a net reduction in equity due to declared and approved final dividends of RMB 62.84 million and transactions with non-controlling interests of RMB 0.49 million Key Data from Consolidated Statement of Changes in Equity | Metric | As of January 1, 2025 (RMB thousand) | Profit for the Period (RMB thousand) | Other Comprehensive Income for the Period (RMB thousand) | Final Dividend Declared and Approved (RMB thousand) | As of June 30, 2025 (RMB thousand) | | :--------------- | :-------------------------- | :-------------------- | :---------------------------- | :------------------------------------ | :-------------------------- | | Equity attributable to owners of the parent | 2,479,826 | 49,740 | 5,796 | (62,839) | 2,476,334 | | Non-controlling interests | 1,440 | (1,765) | – | – | (311) | | Total Equity | 2,481,266 | 47,975 | 5,796 | (62,839) | 2,476,023 | Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2025, the Group's net cash flow from operating activities significantly increased to RMB 199 million, while net cash flow used in investing activities was RMB 66 million, and net cash flow used in financing activities was RMB 372 million, primarily due to a net decrease in bank and other borrowings, resulting in cash and cash equivalents of RMB 678 million at period-end, a decrease of RMB 239 million from the beginning of the period Key Data from Condensed Consolidated Statement of Cash Flows | Metric | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Change (%) | | :------------------- | :-------------------------- | :-------------------------- | :------- | | Net cash flows from operating activities | 198,711 | 82,813 | 140.0% | | Net cash flows used in investing activities | (65,534) | (93,715) | -30.1% | | Net cash flows (used in)/from financing activities | (371,791) | 224,736 | N/A | | Net (decrease)/increase in cash and cash equivalents | (238,614) | 213,834 | N/A | | Cash and cash equivalents at end of period | 678,485 | 732,486 | -7.3% | Notes to the Financial Statements General Information The Group (Intron Technology Holdings Limited and its subsidiaries) specializes in developing automotive component engineering solutions for major Chinese automakers, with the company incorporated in the Cayman Islands on January 3, 2017 - The Group specializes in developing automotive component engineering solutions for major Chinese automobile manufacturers[108] - The company was incorporated as a limited liability company in the Cayman Islands on January 3, 2017[108] Basis of Presentation These financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the HKICPA and Appendix D2 of the Listing Rules, using the historical cost convention and presented in RMB, with all values rounded to the nearest thousand - The financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of Appendix D2 to the Listing Rules[109] - The financial statements are prepared under the historical cost convention and presented in RMB, with all values rounded to the nearest thousand[109] Changes in Accounting Policies and Disclosures The accounting policies adopted for these financial statements are consistent with those applied in the 2024 annual consolidated financial statements, with the only change being the initial adoption of new and revised Hong Kong Financial Reporting Standards issued by the HKICPA, among which the amendment to HKAS 21 "Lack of Exchangeability" had no significant financial impact on the financial statements - The accounting policies adopted for these financial statements are consistent with those applied in the preparation of the Group's annual consolidated financial statements for the year ended December 31, 2024[110] - The amendment to HKAS 21 "Lack of Exchangeability" had no significant financial impact on these financial statements[111] Operating Segment Information The Group has only one reportable operating segment, with management monitoring its overall operating results, and in H1 2025, external customer revenue from mainland China was the largest contributor at RMB 2.757 billion, while non-current assets are primarily concentrated in mainland China - The Group does not disaggregate its business units by product and has only one reportable operating segment[113] External Customer Revenue by Customer Location | Region | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :----------- | :-------------------------- | :-------------------------- | | Hong Kong | 197,777 | 115,311 | | Mainland China | 2,756,785 | 2,698,257 | | Other Countries/Regions | 11,760 | 21,463 | | Total | 2,966,322 | 2,835,031 | Non-current Assets by Asset Location | Region | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :----------- | :-------------------------- | :-------------------------- | | Hong Kong | 98,449 | 100,865 | | Mainland China | 807,683 | 802,633 | | Other Countries/Regions | 1,064 | 1,458 | | Total | 907,196 | 904,956 | Revenue, Other Income and Gains In H1 2025, the Group's revenue from contracts with customers was RMB 2.966 billion, primarily from product sales, while total other income and gains increased by 55.4% to RMB 19.18 million, driven mainly by government grants (RMB 7.66 million) and bank interest income (RMB 6.14 million) Revenue, Other Income and Gains Analysis | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :------------- | :-------------------------- | :-------------------------- | | Revenue from contracts with customers | 2,966,322 | 2,835,031 | | - Sales of products | 2,932,332 | 2,785,967 | | - Provision of consulting services | 33,990 | 49,064 | | Total other income | 14,996 | 7,835 | | - Government grants | 7,664 | 2,167 | | - Bank interest income | 6,135 | 3,090 | | Gains | 4,181 | 4,505 | | Total Other Income and Gains | 19,177 | 12,340 | Profit Before Tax The Group's H1 2025 profit before tax was impacted by various expenses, including cost of inventories sold of RMB 2.539 billion, total R&D costs of RMB 220 million (with RMB 193 million expensed during the period), and employee benefit expenses of RMB 220 million, alongside a net exchange loss of RMB 30.40 million and inventory write-down to net realizable value of RMB 30.68 million Major Deductions/(Credits) in Profit Before Tax | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :------------------- | :-------------------------- | :-------------------------- | | Cost of inventories sold | 2,539,342 | 2,360,660 | | Total R&D costs | 219,869 | 215,043 | | - Expensed during the period | 193,128 | 188,302 | | Net exchange loss | 30,401 | 29,121 | | Employee benefit expenses (excluding directors' and co-chief executive officers' emoluments) | 220,050 | 209,250 | | Write-down of inventories to net realizable value | 30,683 | 7,582 | Finance Costs In H1 2025, the Group's finance costs were RMB 53.84 million, a 5.4% decrease from the prior year, primarily comprising interest on bank borrowings (RMB 40.47 million) and interest on discounted bills receivable (RMB 12.81 million) Finance Costs Analysis | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--------------- | :-------------------------- | :-------------------------- | | Interest on bank borrowings | 40,465 | 43,812 | | Interest on discounted bills receivable | 12,807 | 12,508 | | Interest on lease liabilities | 569 | 612 | | Total | 53,841 | 56,932 | Income Tax The Group is subject to income tax on profits in each jurisdiction, with Hong Kong profits tax at 16.5% and mainland China's statutory rate at 25%, while certain Chinese subsidiaries enjoy preferential rates of 15% for high-tech enterprises or 5% to 25% for small-scale enterprises, resulting in a total income tax credit of RMB 16.53 million for H1 2025 - Hong Kong profits tax rate is 16.5%, and the statutory enterprise income tax rate in mainland China is 25%[125] - Shanghai Intron Electronic Co., Ltd. and other subsidiaries qualify as high-tech enterprises, enjoying a preferential income tax rate of 15%; certain subsidiaries qualify as small-scale enterprises, enjoying preferential tax rates ranging from 5% to 25%[126] Total Income Tax Credit | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :------------- | :-------------------------- | :-------------------------- | | Current - Mainland China | 350 | 38 | | Current - Other regions | 20,896 | 27,134 | | Deferred tax | (37,780) | (40,572) | | Total Income Tax Credit for the Period | (16,534) | (13,400) | Dividends The Directors do not recommend an interim dividend for the six months ended June 30, 2025, while the 2024 final dividend of HKD 6.3 cents per ordinary share (approximately RMB 62.84 million) was approved by shareholders on May 26, 2025, and paid in July 2025 - The Directors do not recommend the payment of a dividend for the six months ended June 30, 2025[129] - The final dividend for the year ended December 31, 2024, of HKD 6.3 cents per ordinary share (equivalent to RMB 62,839,000) was approved by shareholders and paid in July 2025[129] Earnings Per Share Attributable to Ordinary Equity Holders of the Parent For the six months ended June 30, 2025, basic and diluted earnings per share attributable to ordinary equity holders of the parent both significantly decreased to RMB 4.57 cents, down from RMB 8.98 cents in the prior period, calculated based on a weighted average of 1,087,838,400 ordinary shares outstanding during the period Earnings Per Share Calculation | Metric | 2025 H1 | 2024 H1 | | :------------- | :----------- | :----------- | | Profit attributable to ordinary equity holders of the parent (RMB thousand) | 49,740 | 97,678 | | Weighted average number of ordinary shares in issue during the period (shares) | 1,087,838,400 | 1,087,838,400 | | Basic and diluted earnings per share (RMB cents) | 4.57 | 8.98 | - No adjustment was made to the basic earnings per share amount presented for dilution during the period, as the exercise price of the company's outstanding share options was higher than the average market price of the shares during the period[130] Property, Plant and Equipment For the six months ended June 30, 2025, the Group's cost of purchasing property, plant, and equipment items was RMB 27.96 million, a decrease from RMB 45.93 million in the prior period Purchase Cost of Property, Plant and Equipment | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :------------- | :-------------------------- | :-------------------------- | | Purchase cost | 27,958 | 45,929 | Other Intangible Assets As of June 30, 2025, the Group's net book value of other intangible assets increased to RMB 445 million from RMB 425 million at the beginning of the year, with internal development additions of RMB 44.92 million and amortization of RMB 32.85 million during the period Changes in Other Intangible Assets | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :------------- | :-------------------------- | :-------------------------- | | Net book value at end of period/year | 445,029 | 424,697 | | Additions - internally developed | 44,920 | 120,992 | | Amortization | (32,854) | (64,366) | Inventories As of June 30, 2025, the Group's inventories, primarily semiconductor devices and electronic components, amounted to RMB 1.326 billion, remaining largely consistent with the end of 2024 Inventories Composition | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :------------- | :-------------------------- | :-------------------------- | | Semiconductor devices and electronic components | 1,325,650 | 1,332,966 | Trade and Bills Receivables As of June 30, 2025, the Group's total trade and bills receivables significantly decreased by 28.3% to RMB 1.686 billion from RMB 2.353 billion at the end of 2024, comprising trade receivables of RMB 1.546 billion and bills receivable of RMB 157 million, with credit terms generally within three months and strict controls on overdue amounts Trade and Bills Receivables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :------------- | :-------------------------- | :-------------------------- | | Trade receivables | 1,545,994 | 2,311,500 | | Bills receivable | 157,091 | 54,144 | | Impairment | (17,271) | (12,774) | | Total | 1,685,814 | 2,352,870 | Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--------- | :-------------------------- | :-------------------------- | | Within 3 months | 1,401,989 | 2,194,563 | | 3 to 6 months | 76,184 | 54,997 | | 6 to 12 months | 18,752 | 31,526 | | 1 to 2 years | 26,647 | 15,940 | | Over 2 years | 5,151 | 1,700 | | Total | 1,528,723 | 2,298,726 | Prepayments, Other Receivables and Other Assets As of June 30, 2025, the Group's total prepayments, other receivables, and other assets significantly increased to RMB 669 million from RMB 269 million at the end of 2024, with prepayments accounting for RMB 632 million Prepayments, Other Receivables and Other Assets | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :------------- | :-------------------------- | :-------------------------- | | Prepayments | 631,749 | 231,235 | | Prepaid expenses | 7,101 | 7,711 | | Interest receivable | 675 | 695 | | Other recoverable taxes | 8,272 | 8,913 | | Deposits and other receivables | 25,937 | 25,241 | | Impairment allowance | (4,915) | (4,538) | | Total | 668,819 | 269,257 | Cash and Cash Equivalents and Pledged Deposits As of June 30, 2025, the Group's cash and bank balances were RMB 678 million, with pledged deposits of RMB 130 million, primarily serving as collateral for bank borrowings, bills payable, and letters of credit Cash and Cash Equivalents and Pledged Deposits | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :------------- | :-------------------------- | :-------------------------- | | Cash and bank balances | 678,485 | 916,208 | | Pledged deposits | 129,553 | 165,520 | | Subtotal | 808,038 | 1,081,728 | | Less: Pledged deposits | | | | - Pledged for bank borrowings | (68,679) | (68,308) | | - Pledged for bills payable | (10,874) | (4,892) | | - Pledged for letters of credit | (50,000) | (92,320) | | Cash and Cash Equivalents | 678,485 | 916,208 | Trade and Bills Payables As of June 30, 2025, the Group's total trade and bills payables increased to RMB 611 million from RMB 575 million at the end of 2024, comprising trade payables of RMB 425 million and bills payable of RMB 186 million, with trade payables being interest-free and generally settled within three months Trade and Bills Payables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :------------- | :-------------------------- | :-------------------------- | | Trade payables | 425,250 | 502,664 | | Bills payable | 185,874 | 72,283 | | Total | 611,124 | 574,947 | Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--------- | :-------------------------- | :-------------------------- | | Within 3 months | 359,951 | 295,605 | | 3 to 6 months | 59,440 | 155,584 | | 6 to 12 months | 549 | 46,982 | | 1 to 2 years | 1,785 | 4,328 | | Over 2 years | 3,525 | 165 | | Total | 425,250 | 502,664 | Other Payables and Accruals As of June 30, 2025, the Group's total other payables and accruals decreased to RMB 785 million from RMB 938 million at the end of 2024, primarily including other payables of RMB 558 million, dividends payable of RMB 63 million, and salaries and welfare payable of RMB 50 million Other Payables and Accruals | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :------------- | :-------------------------- | :-------------------------- | | Other payables | 558,449 | 687,968 | | Dividends payable | 62,503 | – | | Taxes payable other than enterprise income tax | 62,636 | 80,822 | | Salaries and welfare payable | 50,128 | 112,000 | | Contract liabilities | 49,683 | 54,765 | | Payables for purchase of property, plant, equipment and other intangible assets | 1,960 | 2,394 | | Total | 785,359 | 937,949 | Interest-bearing Bank and Other Borrowings As of June 30, 2025, the Group's total interest-bearing bank and other borrowings amounted to RMB 1.636 billion, all repayable within one year or on demand, with some bank loans secured by the Group's pledged deposits Repayment Period of Interest-bearing Bank and Other Borrowings | Repayment Period | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :----------- | :-------------------------- | :-------------------------- | | Within 1 year or on demand | 1,636,264 | 1,742,945 | | Within 1 to 2 years | – | 295,443 | | Total | 1,636,264 | 2,038,388 | - As of June 30, 2025, certain bank loans of the Group were secured by pledged deposits amounting to RMB 68,679,000[150] Government Grants As of June 30, 2025, the Group's non-current government grants amounted to RMB 3.04 million, related to subsidies received from the government to compensate for expenses incurred in specific project R&D and improvements to production facilities Government Grants | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :------- | :-------------------------- | :-------------------------- | | Non-current | 3,040 | 1,260 | - The grants relate to subsidies received from the government to compensate for expenses incurred in certain specific project R&D and improvements to production facilities[151] Share Capital As of June 30, 2025, the company's authorized share capital comprised 2,400,000,000 ordinary shares of HKD 0.01 each, with 1,087,838,400 shares issued and fully paid, having a par value of RMB 9.25 million Share Capital Details | Item | Number of Shares | Par Value (HKD thousand/RMB thousand) | | :------------- | :------------- | :----------------------- | | Authorized share capital | 2,400,000,000 | 24,000 (HKD) | | Issued and fully paid share capital | 1,087,838,400 | 9,249 (RMB) | Pledged Assets The Group has pledged assets as collateral for bank and other borrowings, with details disclosed in Note 19 to the financial statements - Details of the Group's assets pledged for bank and other borrowings are set out in Note 19 to these financial statements[154] Commitments As of June 30, 2025, the Group's contracted but unprovided capital commitments amounted to RMB 23.98 million, primarily for patents, plant, and machinery Capital Commitments | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :------------- | :-------------------------- | :-------------------------- | | Contracted but not provided for | 23,975 | 7,243 | Significant Related Party Transactions In H1 2025, the Group engaged in sales of products and services to related parties, including RMB 7.35 million to Momenta (Shanghai) Technology Co., Ltd., with total key management personnel compensation amounting to RMB 9.96 million Sales of Products and Services to Related Parties | Related Party | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :----------------- | :-------------------------- | :-------------------------- | | Wuxi Sheng Bang Electronics Co., Ltd. | – | 19,354 | | Momenta (Shanghai) Technology Co., Ltd. | 7,350 | 466 | Key Management Personnel Compensation | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :------------- | :-------------------------- | :-------------------------- | | Salaries, allowances and benefits in kind | 9,762 | 10,669 | | Contributions to retirement benefit schemes | 164 | 162 | | Equity-settled share option and award expenses | 36 | 95 | | Total | 9,962 | 10,926 | Fair Value of Financial Instruments and Fair Value Hierarchy The carrying amounts of the Group's financial instruments approximate their fair values, with derivative financial instruments measured at present value and fair values of unlisted equity investments estimated using market-based and discounted cash flow valuation techniques, and as of June 30, 2025, total assets measured at fair value amounted to RMB 298 million, including bills receivable of RMB 157 million (Level 2) and financial assets designated at fair value through profit or loss of RMB 136 million (Level 3), while liabilities measured at fair value primarily comprised derivative financial instruments of RMB 0.30 million (Level 2) - All carrying amounts of the Group's financial instruments approximate their fair values[161] - Derivative financial instruments are measured at present value using valuation techniques similar to forward pricing models, and fair values of unlisted equity investments are estimated using market-based valuation techniques and discounted cash flow valuation techniques[161] Assets Measured at Fair Value (June 30, 2025) | Item | Level 1 (RMB thousand) | Level 2 (RMB thousand) | Level 3 (RMB thousand) | Total (RMB thousand) | | :------------- | :----------------- | :----------------- | :----------------- | :---------------- | | Bills receivable | – | 157,091 | – | 157,091 | | Equity investments designated at fair value through other comprehensive income | – | – | 4,410 | 4,410 | | Financial assets at fair value through profit or loss | – | – | 136,394 | 136,394 | | Total | – | 157,091 | 140,804 | 297,895 | Liabilities Measured at Fair Value (June 30, 2025) | Item | Level 1 (RMB thousand) | Level 2 (RMB thousand) | Level 3 (RMB thousand) | Total (RMB thousand) | | :------------- | :----------------- | :----------------- | :----------------- | :---------------- | | Derivative financial instruments | – | 299 | – | 299 |