Company Performance - In the first half of 2025, the company achieved resilient growth amidst global supply chain transformation, ranking 160th in the Fortune China 500 list[7]. - The company achieved a revenue of RMB 24.5 billion during the reporting period, focusing on customer-centric strategies and digital innovation[25]. - The company’s platform, HSH International Inc., reported a revenue of approximately RMB 10.1 billion, with a cumulative customer base of 56,088 as of June 30, 2025[29]. - The company’s subsidiary, Zhuogang Chain, achieved a revenue of approximately RMB 7.5 billion, serving over 5,000 clients with a comprehensive supply chain service ecosystem[31]. - The company’s revenue increased by approximately 33.2% from RMB 68,276.4 million for the six months ended June 30, 2024, to RMB 90,921.5 million for the six months ended June 30, 2025[37]. - Revenue from supply chain management and trading business contributed about 99.7% of total revenue, showing a year-on-year increase of approximately 33.3% due to the expansion of business scale[38]. - The company reported a financial income of RMB (125,523,000) for the six months ended June 30, 2025, slightly higher than RMB (122,803,000) in the previous year[171]. - The company recorded a profit of RMB 97,051 thousand for the six months ended June 30, 2025, compared to a profit of RMB 49,817 thousand for the same period in 2024, representing an increase of approximately 94.5%[145]. Supply Chain and Digital Transformation - The company expanded its product matrix to over 2,500 types of raw materials, significantly increasing sales volume and revenue in various categories such as ABS, PP, and PET[8]. - The company has successfully implemented a "cloud factory" model in multiple regions, enhancing logistics efficiency and achieving same-day delivery capabilities[9]. - The company is focusing on digital trade and supply chain services, integrating AI and big data technologies to improve operational efficiency and risk management[9]. - The company has established modern supply chain systems in various sectors, including flowers, seafood, and textiles, enhancing market penetration and service capabilities[10]. - The company has launched a digital sugarcane planting management platform, utilizing AI technology for comprehensive monitoring throughout the growth cycle[9]. - The company has integrated various supply chain systems covering the entire steel industry chain, enhancing service capabilities through a multi-dimensional smart service system[9]. - The company aims to enhance operational efficiency and value along the supply chain, leveraging digital technologies such as big data and artificial intelligence[34]. Market Expansion and Customer Engagement - Hankou North has established over 30 large-scale integrated professional market clusters, including brand clothing and hotel supplies, aiming to become the largest supply chain management center in China and a leading global trade logistics platform[16]. - In the first half of 2025, Hankou North focused on upgrading its commodity market and developing a new model integrating industrial integration, experiential consumption, trade digitization, and supply chain services[16]. - The live streaming ecosystem at Hankou North has seen significant growth, with over 2,800 signed merchants and more than 200 live streaming teams, achieving over 1,000 live streaming sessions daily[11]. - Hankou North has established a "Foreign Trade Quality Live Streaming Room" and an online "Foreign Trade Special Zone," providing 24-hour electronic customs clearance and intelligent review services to help foreign trade enterprises expand into the domestic market[12]. - The live streaming e-commerce base has seen a surge in online order volume, with daily GMV reaching new highs, supported by free training programs for aspiring live streamers[21]. - Hankou North is committed to creating high-quality shopping parks, attracting over one million participants during themed events like the May Day Carnival[22]. Financial Overview - The cost of sales increased by approximately 33.5% from RMB 67,912.6 million to RMB 90,644.1 million, in line with the revenue increase[43]. - Gross profit decreased by approximately 23.8% from RMB 363.8 million to RMB 277.3 million, with the gross profit margin dropping from about 0.5% to 0.3%[44]. - Other net income decreased by approximately 65.3% from RMB 55.1 million to RMB 19.1 million, mainly due to a reduction in government subsidies and changes in fair value of forward contracts[45]. - Selling and distribution expenses increased by approximately 20.1% from RMB 122.8 million to RMB 147.6 million, primarily due to an increase in promotional expenses[46]. - The net profit for the six months ending June 30, 2025, was approximately RMB 70.0 million, an increase of approximately 71.7% compared to RMB 40.8 million for the same period last year[56]. - The company reported a net cash outflow from operating activities of RMB 1,251,654 thousand for the six months ended June 30, 2025, compared to RMB 3,411,736 thousand for the same period in 2024, showing a significant reduction of approximately 63.3%[146]. - The total equity attributable to equity shareholders of the company as of June 30, 2025, was RMB 14,016,047 thousand, up from RMB 13,951,217 thousand as of December 31, 2024, marking an increase of approximately 0.5%[145]. Employee and Governance - Employee benefit expenses for the six months ended June 30, 2025, were approximately RMB 146.4 million, compared to RMB 129.6 million for the same period in 2024, reflecting an increase of about 12.9%[71]. - The group employed a total of 1,558 full-time employees as of June 30, 2025, a decrease from 1,628 employees as of June 30, 2024[71]. - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules and has complied with all provisions during the reporting period[127]. - The company confirms that all directors have adhered to the standard code for securities trading during the six months ending June 30, 2025[128]. Future Outlook and Strategic Plans - The company plans to further develop through internal growth or acquisitions to enhance its intelligent ecosystem and operational efficiency[32]. - The group plans to generate positive operating cash flow over the next twelve months through improved supply chain management and trade business revenue[152]. - The group plans to sell non-core businesses and assets to raise additional operating funds[152]. - The company plans to continue investing in the market through self-funding, bank loans, and other channels to enhance the Han Kou Bei International Trading Center and promote the integration of online and offline businesses[65].
卓尔智联(02098) - 2025 - 中期财报