汽车街(02443) - 2025 - 中期财报

Company Information Board of Directors and Corporate Structure The company's board, comprising executive, non-executive, and independent directors, ensures sound corporate governance through its audit, remuneration, and nomination committees - Board members include Mr. Yang Aihua, Mr. Yang Hansong, Ms. Gao Kun, Mr. Zhao Hongliang (new Executive Director), Mr. Rob Huting, Ms. Yang Chuyu (Non-executive Directors), and Mr. Wang Jianping, Ms. Li Mochou, Mr. Yan Jun (Independent Non-executive Directors)[5] - Ms. Li Mochou chairs the Audit Committee, Mr. Wang Jianping chairs the Remuneration Committee, and Mr. Yang Hansong chairs the Nomination Committee[5] Registration and Operating Locations Registered in Cayman Islands, the company operates from Shanghai, China, with a Hong Kong office; Ernst & Young is its auditor - The company's registered office is in the Cayman Islands, and its principal place of business and head office in China are located at 6/F, Kailong Center, No. 2251 Zhenbei Road, Putuo District, Shanghai[5] - The principal place of business in Hong Kong is located at Room 1917, 19/F, Lee Garden One, 33 Hysan Avenue, Causeway Bay[5] - The auditor is Ernst & Young, and legal advisors include Paul Hastings (Hong Kong) and Maples and Calder (Hong Kong)[5][6] Listing Information The company's stock code is 2443, and it was listed on the Main Board of the Stock Exchange on May 31, 2024 - The company's stock code is 2443, with a listing date of May 31, 2024[7] - The company's website is www.autostreets.com[7](index=7&type=chunk) Financial and Operational Summary Financial Performance Overview For the six months ended June 30, 2025, revenue decreased by 25.9% to RMB 141.8 million, gross profit declined by 27.9%, but profit for the period turned from loss to profit, increasing by 109.0% Financial Performance for the Six Months Ended June 30 | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 141,846 | 191,309 | (25.9) | | Gross Profit | 89,209 | 123,701 | (27.9) | | Gross Margin (%) | 62.9 | 64.7 | (1.8) percentage points | | Profit/(Loss) for the Period | 12,791 | (142,231) | 109.0 | Operational Performance Overview For the six months ended June 30, 2025, the number of used cars traded and serviced by the company decreased by 8.0% year-on-year to 174,520 vehicles Operational Performance for the Six Months Ended June 30 | Metric | 2025 (vehicles) | 2024 (vehicles) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Number of used cars traded and serviced | 174,520 | 189,591 | (8.0) | Management Discussion and Analysis Industry and Business Review China's auto market saw record production and sales in the first half, but the EV-driven price war led to lower transaction prices for new and used cars, slowing used car transaction volume growth; the company responded by expanding key account business, increasing EV collaborations, optimizing auction networks, and enhancing appraiser professionalism - In the first half of 2025, China's auto production and sales both exceeded 15 million vehicles for the first time, with domestic sales growing by 11.7% year-on-year, including a 35.5% increase in new energy passenger vehicles and a 1.8% decrease in fuel vehicles[9] - National cumulative used car transaction volume reached 9.5701 million vehicles, a year-on-year increase of 1.99%, with significantly slowed growth primarily due to insufficient demand and new car price wars[9] - In the first half, the company signed cooperation agreements with over twenty auto dealer groups, including national top 100 groups and top 100 new energy dealers, becoming an auction cooperation platform for resource vehicles from several major domestic leading brand manufacturers[11] - As of the end of June 2025, the company had cumulatively established 82 auction centers and service outlets, covering 329 cities nationwide, with over 92% of its in-house professional appraiser team employees obtaining the "Advanced Used Car Appraisal and Evaluation Specialist Certificate" qualification[12] Performance by Business Segment Affected by continuous new car price declines and industry downturn, the company's used car auction, value-added services, and buy-and-sell arrangement businesses experienced declines in both transaction volume and revenue, with exhibition business revenue falling to zero; the company maintained transaction rates through marketing policies, but per-vehicle revenue was impacted Key Operating Data by Business Segment | Business Segment | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | :--- | | Used Car Auction Business | Number of transactions (vehicles) | 74,411 | 79,439 | -6.3% | | | Average revenue per vehicle (RMB) | 1,264 | 1,678 | -24.7% | | Used Car Value-Added Services | Number of used cars serviced (vehicles) | 89,545 | 100,921 | -11.3% | | | Average revenue per vehicle (RMB) | 318 | 302 | +5.3% | | Used Car Buy-and-Sell Arrangement | Number of consumer trade-in transactions (vehicles) | 6,502 | 9,231 | -29.6% | | | Average revenue per vehicle (RMB) | 2,081 | 1,985 | +4.8% | - The transaction success rate for used car auction business increased from 45.6% in H1 2024 to 47.2% in H1 2025, but listing volume and transaction volume decreased by 9.4% and 6.3% respectively[18] - Exhibition business revenue decreased from RMB 0.7 million in H1 2024 to zero in H1 2025, primarily due to partners reducing marketing expenditures[21] Outlook The company is committed to reshaping China's used car transaction process, planning to expand its auction network, broaden supply and buyer channels, diversify services, strengthen cooperation with new energy vehicle OEMs, enhance digital products and services, and explore strategic cooperation and acquisition opportunities - The company will expand and optimize its auction network, upgrading service facilities to strengthen management and improve service quality[23] - The company will strengthen cooperation with new energy vehicle OEMs and manufacturers to enhance appraisal, inspection, and transaction capabilities for new energy used cars[23] - The company will enhance digital products and services, establish an integrated platform for used car data and appraisal/inspection, and explore potential strategic cooperation and acquisition opportunities[23] Material Events After Reporting Period As of the date of this interim report, no events with a material impact on the company and its subsidiaries have occurred after the reporting period - Except as disclosed in this interim report, no events that could have a material impact on the company and its subsidiaries have occurred from the end of the reporting period to the date of this interim report[24] Financial Analysis Total company revenue decreased by 25.9% year-on-year, primarily due to reduced revenue from used car auction, value-added services, and buy-and-sell arrangement businesses; cost of sales, selling and distribution expenses, and administrative expenses all decreased, leading to lower gross profit and gross margin; profit for the period turned from a loss in the prior year to a profit, mainly benefiting from no fair value change impact and listing expense expenditures Revenue Breakdown by Business Segment | Business Segment | 2025 (RMB thousands) | 2025 (%) | 2024 (RMB thousands) | 2024 (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Used car auction commissions and service fees | 94,051 | 66.3 | 133,309 | 69.7 | -29.4 | | Used car value-added services | 28,456 | 20.1 | 33,179 | 17.3 | -14.2 | | Used car buy-and-sell arrangement | 13,534 | 9.5 | 18,326 | 9.6 | -26.1 | | Exhibition business | – | – | 721 | 0.4 | -100.0 | | Other services | 5,805 | 4.1 | 5,774 | 3.0 | +0.5 | | Total | 141,846 | 100.0 | 191,309 | 100.0 | -25.9 | - Cost of sales decreased by 22.1% year-on-year to RMB 52.6 million, primarily due to reduced labor costs, professional service costs, and intermediary costs as business transaction volume declined[30] - Administrative expenses decreased by 45.5% year-on-year to RMB 42.1 million, mainly due to no listing expenses in H1 2025 and a decrease in salaries and benefits expenses resulting from a reduction in employee numbers[33] - Profit for the period improved by 109.0% from a loss of RMB 142.2 million in H1 2024 to a profit of RMB 12.8 million in H1 2025, primarily attributable to no fair value change impact and listing expense expenditures[38][39][41] Capital Management and Liquidity The company's capital management objective is to safeguard its ability to continue as a going concern and maintain a sound capital ratio; as of June 30, 2025, cash and cash equivalents remained stable, borrowings slightly decreased, and the debt-to-asset ratio remained stable - As of June 30, 2025, cash and cash equivalents were RMB 1,046.8 million, a slight increase from RMB 1,046.6 million as of December 31, 2024[43] - Outstanding borrowings were RMB 126.2 million, a 3% decrease from RMB 129.5 million as of December 31, 2024[44] - The debt-to-asset ratio was 23.8%, remaining stable compared to 25.0% as of December 31, 2024[45] Investments, Acquisitions, and Asset Pledges During the reporting period, the company made no material investments, acquisitions, or disposals of subsidiaries, pledged no assets, and currently has no other significant future plans for investments and capital assets - During the reporting period, the company made or held no material investments, nor any material acquisitions and/or disposals of subsidiaries[46][47] - As of June 30, 2025, the Group had no assets pledged[48] - As of the date of this interim report, the company had no other significant plans for investments and capital assets[49] Employees and Risk Management The company's employee count decreased, but it offers competitive remuneration and training; the company's primary business is denominated in RMB, foreign currency risk is not material, and investment risk is managed through low-risk financial products - As of June 30, 2025, the company had 622 employees, a decrease from 686 as of December 31, 2024[50] - Total employee benefit expenses (including directors' remuneration) were RMB 38.2 million, a decrease from RMB 56.6 million in H1 2024[50] - The company's primary business is conducted in RMB, with most assets and liabilities denominated in RMB, and currently considers foreign currency risk not material[52] - The company invests in low-risk financial products offered by licensed financial institutions and adopts internal policies and guidelines to manage investment risk[52] Corporate Governance and Other Information Changes in Directors and Key Executives and Their Interests Mr. Zhao Hongliang was appointed as an Executive Director, and Ms. Zhu Yi resigned as a Non-executive Director; several directors and key executives hold company shares through controlled corporations, with Mr. Yang Aihua holding the largest proportion - Mr. Zhao Hongliang was appointed as an Executive Director on May 28, 2025, and Ms. Zhu Yi resigned as a Non-executive Director on the same day[53] Interests of Directors and Key Executives in the Company's Shares (As of June 30, 2025) | Name | Position | Nature of Interest | Number of Shares Held | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | :--- | | Yang Aihua | Executive Director | Interest in controlled corporation | 100,000,000 | 12.01% | | Yang Hansong | Executive Director and Chairman | Interest in controlled corporation | 45,000,000 | 5.40% | | Gao Kun | Executive Director, CFO and Joint Company Secretary | Interest in controlled corporation | 5,000,000 | 0.60% | | Zhao Hongliang | Executive Director and CEO | Interest in controlled corporation | 7,300,000 | 0.88% | Major Shareholders' Interests In addition to the directors, Changguang Investment Co., Ltd., Manheim Investments, Inc., World Key Investment Trading Limited, and Grand Baoxin Auto Group Co., Ltd. are major shareholders holding company shares Major Shareholders' Interests in the Company's Shares (As of June 30, 2025) | Shareholder Name/Entity | Nature of Interest | Number of Shares Held | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Changguang Investment Co., Ltd. | Beneficial owner | 100,000,000 | 12.01% | | Manheim Investments, Inc. | Beneficial owner | 90,000,000 | 10.81% | | World Key Investment Trading Limited | Beneficial owner | 45,000,000 | 5.40% | | Grand Baoxin Auto Group Co., Ltd. | Interest in controlled corporation | 62,500,000 | 7.50% | Corporate Governance Compliance The company has complied with all code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules during the reporting period and up to the date of this interim report, and directors confirmed compliance with the Model Code for Securities Transactions - The company has complied with all code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules during the reporting period and up to the date of this interim report[60] - Following specific enquiries made to all Directors, they confirmed compliance with the Model Code throughout the reporting period and up to the date of this interim report[63] Audit Committee and Dividend Policy The Audit Committee has reviewed the interim results and deemed the financial statements compliant with accounting standards; the Board does not recommend an interim dividend, and the company has not engaged in any purchase, sale, or redemption of listed securities - The Audit Committee, comprising Ms. Li Mochou (Chairperson), Mr. Wang Jianping, and Mr. Yan Jun, has reviewed the Group's unaudited interim results for the six months ended June 30, 2025[64] - The Directors do not recommend the payment of any interim dividend for the six months ended June 30, 2025[65] - During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's securities listed on the Stock Exchange[66] Material Litigation and Use of Proceeds from Global Offering The company is not involved in any material litigation; net proceeds from the global offering were approximately HKD 83.0 million, with HKD 17.9 million utilized as of June 30, 2025, primarily for expanding the auction network, strengthening customer relationships, developing service portfolios, and R&D, with the remaining amount expected to be fully utilized by December 2028 - For the six months ended June 30, 2025, the company was not involved in any material litigation or arbitration[67] Use of Proceeds from Global Offering (As of June 30, 2025) | Purpose | Percentage (%) | Net Proceeds (HKD millions) | Amount Utilized During Reporting Period (HKD millions) | Unutilized Amount (HKD millions) | Expected Timeline for Full Utilization | | :--- | :--- | :--- | :--- | :--- | :--- | | Expanding geographical coverage of auction network | 40.0 | 33.2 | 1.0 | 31.2 | 2028 | | Strengthening relationships with existing sellers and buyers, attracting new sellers and buyers | 10.0 | 8.2 | 1.6 | 5.0 | 2028 | | Developing and diversifying service portfolio, exploring new growth areas | 15.0 | 12.5 | 2.0 | 8.5 | 2028 | | Investing in research and development | 15.0 | 12.5 | 2.9 | 7.8 | 2028 | | Establishing potential strategic partnerships and alliances with business partners, making investments and/or acquisitions | 10.0 | 8.3 | 0 | 8.3 | 2028 | | Working capital and general corporate purposes | 10.0 | 8.3 | 2.0 | 4.3 | 2028 | | Total | 100.0 | 83.0 | 9.5 | 65.1 | | Interim Report Approval The Board approved and authorized the publication of the Group's interim report and unaudited interim condensed consolidated results for the six months ended June 30, 2025, on August 29, 2025 - The Board approved and authorized the publication of the Group's interim report and unaudited interim condensed consolidated results for the six months ended June 30, 2025, on August 29, 2025[73] Interim Condensed Consolidated Statement of Profit or Loss Profit or Loss Statement Overview For the six months ended June 30, 2025, the company's revenue was RMB 141.8 million, and gross profit was RMB 89.2 million; profit for the period was RMB 12.8 million, compared to a loss of RMB 142.2 million in the prior year, with basic and diluted earnings per share of RMB 0.01 Summary of Interim Condensed Consolidated Statement of Profit or Loss | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 141,846 | 191,309 | | Cost of revenue | (52,637) | (67,608) | | Gross profit | 89,209 | 123,701 | | Other income and gains, net | 3,775 | 4,457 | | Selling and distribution expenses | (30,460) | (39,620) | | Administrative expenses | (42,089) | (77,188) | | Other expenses | (952) | (1,552) | | Finance costs | (3,586) | (3,276) | | Share of profit/(loss) of an associate | 119 | – | | Fair value change of financial assets at FVTPL | – | 44 | | Fair value change of financial liabilities at FVTPL | – | (142,293) | | Profit/(Loss) before tax | 16,016 | (135,727) | | Income tax expense | (3,225) | (6,504) | | Profit/(Loss) for the period | 12,791 | (142,231) | | Earnings/(Loss) per share attributable to ordinary equity holders of the parent — Basic and diluted (RMB) | 0.01 | (0.19) | Interim Condensed Consolidated Statement of Comprehensive Income Comprehensive Income Statement Overview For the six months ended June 30, 2025, the company's profit for the period was RMB 12.8 million, and after deducting other comprehensive loss of RMB 4.4 million due to exchange differences, total comprehensive income for the period was RMB 8.4 million Summary of Interim Condensed Consolidated Statement of Comprehensive Income | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit/(Loss) for the period | 12,791 | (142,231) | | Exchange differences on translation of financial statements of the company | (4,381) | (987) | | Other comprehensive loss for the period, net of tax | (4,381) | (987) | | Total comprehensive income/(loss) for the period | 8,410 | (143,218) | | Attributable to owners of the parent | 1,081 | (148,594) | | Non-controlling interests | 7,329 | 5,376 | Interim Condensed Consolidated Statement of Financial Position Financial Position Overview As of June 30, 2025, the company's total assets were RMB 1,241.5 million, with current assets accounting for the largest proportion; total current liabilities were RMB 252.7 million, and net assets were RMB 945.9 million Summary of Interim Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total non-current assets | 81,225 | 92,074 | | Total current assets | 1,160,292 | 1,158,162 | | Total assets | 1,241,517 | 1,250,236 | | Total current liabilities | 252,680 | 262,285 | | Total non-current liabilities | 42,899 | 50,423 | | Total liabilities | 295,579 | 312,708 | | Net assets | 945,938 | 937,528 | | Equity attributable to owners of the parent | 927,355 | 926,274 | | Non-controlling interests | 18,583 | 11,254 | | Total equity | 945,938 | 937,528 | - Cash and cash equivalents as of June 30, 2025, were RMB 1,046.8 million, a slight increase from RMB 1,046.6 million as of December 31, 2024[76] - Trade receivables were RMB 15.0 million, and trade payables were RMB 10.3 million[76][77] Interim Condensed Consolidated Statement of Changes in Equity Changes in Equity Overview For the six months ended June 30, 2025, total equity increased from RMB 937.5 million at the beginning of the period to RMB 945.9 million, primarily influenced by profit for the period and an increase in non-controlling interests Summary of Interim Condensed Consolidated Statement of Changes in Equity | Metric | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total equity at beginning of period | 937,528 | 394,726 | | Profit/(Loss) for the period | 12,791 | (142,231) | | Other comprehensive loss for the period | (4,381) | (987) | | Total comprehensive income/(loss) for the period | 8,410 | (143,218) | | Shares issued from initial public offering | – | 139,118 | | Share issue expenses | – | (7,779) | | Conversion of convertible redeemable preference shares to ordinary shares | – | 516,312 | | Capital contribution from non-controlling shareholders of subsidiaries | – | 245 | | Total equity at end of period | 945,938 | 899,404 | - Equity attributable to owners of the parent increased from RMB 926.3 million at the beginning of the period to RMB 927.4 million at the end of the period, while non-controlling interests increased from RMB 11.3 million to RMB 18.6 million[78] Interim Condensed Consolidated Statement of Cash Flows Cash Flow Overview For the six months ended June 30, 2025, net cash generated from operating activities was RMB 15.1 million, net cash generated from investing activities was RMB 6.1 million, net cash used in financing activities was RMB 17.8 million, and cash and cash equivalents at period-end were RMB 1,046.8 million Summary of Interim Condensed Consolidated Statement of Cash Flows | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net cash flows from/(used in) operating activities | 15,119 | (63,623) | | Net cash flows from investing activities | 6,078 | 11,432 | | Net cash flows (used in)/from financing activities | (17,771) | 75,476 | | Net increase in cash and cash equivalents | 3,426 | 23,285 | | Cash and cash equivalents at beginning of period | 1,046,599 | 935,441 | | Net effect of exchange rate changes | (3,182) | 930 | | Cash and cash equivalents at end of period | 1,046,843 | 959,656 | - Operating cash flow turned from a net outflow of RMB 63.6 million in the prior year to a net inflow of RMB 15.1 million, primarily benefiting from improved profit before tax[80] - Financing cash flow turned from a net inflow of RMB 75.5 million in the prior year to a net outflow of RMB 17.8 million, primarily due to repayment of interest-bearing bank borrowings and lease payments[81] Notes to the Interim Condensed Consolidated Financial Information Company and Group Information Autostreets Development Limited was incorporated in the Cayman Islands on September 3, 2014, as an investment holding company primarily engaged in used car buy-and-sell arrangements and providing used car services, and was listed on the Main Board of the Stock Exchange on May 31, 2024 - The company was incorporated as an exempted company under the Companies Act of the Cayman Islands on September 3, 2014[82] - The company is an investment holding company primarily engaged in used car buy-and-sell arrangements and providing used car services[83] - The company's shares have been listed on the Main Board of The Stock Exchange of Hong Kong Limited since May 31, 2024[84] Basis of Preparation and Changes in Accounting Policies The interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34, with accounting policies consistent with the annual consolidated financial statements, and only a few newly adopted revised IFRS accounting standards are not expected to have a material impact - The interim condensed consolidated financial information has been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting[85] - The accounting policies adopted in preparing the interim condensed consolidated financial information are consistent with those applied in the preparation of the Group's annual consolidated financial statements for the year ended December 31, 2024[86] - The newly adopted amendments to IFRSs are not expected to have any material impact on the Group's interim condensed consolidated financial information[86] Operating Segment Information As the Group's revenue, results, and total assets are derived from a single operating segment (i.e., providing transportation and related services), and all revenue and non-current assets are from China, no operating segment and geographical information is presented, and no single customer accounts for more than 10% of total revenue - The Group's revenue and reported results for the reporting period, as well as its total assets at each period end, are derived from a single operating segment (i.e., providing transportation and related services), thus no operating segment information is presented[87] - All of the Group's revenue during the period was derived from China, and all non-current assets are located in China, thus no geographical segments are presented[88] - The Group has a large number of customers, and during the period, no single customer's revenue accounted for more than 10% of the Group's total revenue[89] Revenue Analysis For the six months ended June 30, 2025, total revenue was RMB 141.8 million, primarily from used car auction commissions and service fees, followed by used car value-added services and used car buy-and-sell arrangements; most revenue is recognized at the point of sale or service completion Disaggregated Revenue Information from Contracts with Customers | Revenue Source | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Used car auction commissions and service fees | 94,051 | 133,309 | | Used car value-added service income | 28,456 | 33,179 | | Used car buy-and-sell arrangement income | 13,534 | 18,326 | | Exhibition business income | – | 721 | | Other service income | 5,805 | 5,774 | | Total | 141,846 | 191,309 | | Timing of revenue recognition | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | At a point in time (completion of sale or service) | 121,924 | 166,506 | | Over time (as services are provided) | 19,922 | 24,803 | | Total | 141,846 | 191,309 | Components of Profit/(Loss) Before Tax Profit/(loss) before tax is primarily influenced by various business costs, R&D costs, depreciation and amortization, fair value changes, and employee benefit expenses; the absence of fair value changes for convertible redeemable preference shares and listing expenses in H1 2025 positively impacted profit Summary of Items Deducted From/(Credited To) Profit/(Loss) Before Tax | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Cost of used car auction commissions and service fees | 43,197 | 56,254 | | Research and development costs | 6,334 | 5,309 | | Depreciation of property, plant and equipment | 2,797 | 2,888 | | Depreciation of right-of-use assets | 10,616 | 11,955 | | Fair value change of convertible redeemable preference shares | – | 142,293 | | Listing expenses | – | 26,662 | | Employee benefit expenses (including directors' remuneration) | 38,207 | 56,584 | - In H1 2025, there were no fair value changes for convertible redeemable preference shares (H1 2024: loss of RMB 142.3 million) and no listing expenses (H1 2024: RMB 26.7 million)[92] Income Tax For the six months ended June 30, 2025, income tax expense was RMB 3.2 million, a decrease from the prior year; Chinese subsidiaries are subject to a 25% income tax rate, with some high-tech enterprises and western development zone enterprises enjoying a 15% preferential rate, and small and micro enterprises a 20% preferential rate Summary of Income Tax Expense | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current — Mainland China: Expense for the year | 556 | 5,012 | | Underprovision in prior years | 24 | 181 | | Deferred tax | 2,645 | 1,311 | | Total | 3,225 | 6,504 | - Changchun Baorui International Exhibition Co., Ltd. is certified as a "High-tech Enterprise" and enjoys a 15% preferential income tax rate[96] - Xinjiang Huihan Motor Vehicle Auction Service Co., Ltd. enjoys a five-year income tax exemption, followed by a five-year 50% reduction; Guizhou Xintong Used Car Auction Co., Ltd. enjoys a 15% preferential tax rate[96] - Certain Chinese subsidiaries qualify as small and micro enterprises, enjoying a 20% preferential corporate income tax rate[97] Dividends and Earnings Per Share The Board does not recommend an interim dividend; for the six months ended June 30, 2025, basic and diluted earnings per share were RMB 0.01, compared to a loss per share of RMB 0.19 in the prior year - The company's Board of Directors has resolved not to declare an interim dividend for the six months ended June 30, 2025[98] Calculation of Basic and Diluted Earnings/(Loss) Per Share | Metric | 2025 (RMB thousands/thousands of shares/RMB) | 2024 (RMB thousands/thousands of shares/RMB) | | :--- | :--- | :--- | | Profit/(Loss) attributable to ordinary equity holders of the parent | 5,462 | (147,607) | | Weighted average number of ordinary shares in issue for basic and diluted EPS calculation | 832,662 | 773,706 | | Earnings/(Loss) per share — Basic and diluted | 0.01 | (0.19) | Trade Receivables and Payables As of June 30, 2025, total trade receivables were RMB 15.0 million, all due within six months; total trade payables were RMB 10.3 million, all settled within six months and non-interest bearing Ageing Analysis of Trade Receivables (As of June 30, 2025) | Ageing | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 6 months | 15,032 | 14,376 | | 6 months to 1 year | – | 294 | | Total | 15,032 | 14,670 | Ageing Analysis of Trade Payables (As of June 30, 2025) | Ageing | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 6 months | 10,320 | 10,906 | | 6 months to 1 year | – | 197 | | Total | 10,320 | 11,103 | - Trade payables are non-interest bearing and generally settled within 15 to 120 days[102] Share Capital and Related Party Transactions The company's issued and fully paid share capital consists of 832,662,428 ordinary shares, with a share capital amount of RMB 56 thousand; the company has transactions with related parties such as Huzhou Baorui Auto Sales and Service Co., Ltd. and Shanghai Kailong Auto Group Co., Ltd. for used car value-added service costs and rental expenses, and has outstanding balances Issued and Fully Paid Share Capital | Share Capital Type | Number of Shares Issued | Share Capital (RMB thousands) | | :--- | :--- | :--- | | Ordinary shares of US$0.00001 each | 832,662,428 | 56 | Summary of Related Party Transactions (As of June 30, 2025) | Transaction Type | Related Party Name | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | :--- | | Cost of used car value-added services | Huzhou Baorui Auto Sales and Service Co., Ltd. | 143 | 92 | | Rental expenses | Shanghai Kailong Auto Group Co., Ltd. | 1,657 | 1,714 | | Rental expenses | Shanghai Longyun Property Management Co., Ltd. | 259 | 274 | Outstanding Balances with Related Parties (As of June 30, 2025) | Balance Type | Related Party Name | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | :--- | | Prepayments, transaction deposits and other receivables | Shanghai Kailong Auto Group Co., Ltd. | 2,610 | 2,610 | | Prepayments, transaction deposits and other receivables | Shanghai Longyun Property Management Co., Ltd. | 412 | 415 | | Trade payables and bills payable | Huzhou Baorui Auto Sales and Service Co., Ltd. | 88 | 122 | | Trade payables and bills payable | Ma'anshan Ruibao Auto Sales and Service Co., Ltd. | 24 | 14 | Summary of Key Management Personnel Remuneration (As of June 30, 2025) | Remuneration Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Salaries, allowances and benefits in kind | 3,611 | 4,546 | | Pension scheme contributions | 171 | 156 | | Total | 3,782 | 4,702 | Fair Value of Financial Instruments and Fair Value Hierarchy Management assesses that the fair value of most financial instruments approximates their carrying amounts; financial assets measured at fair value through profit or loss are primarily bank-issued financial products, classified as Level 2 in the fair value hierarchy - Management has assessed cash and cash equivalents, trade receivables, financial assets included in prepayments, transaction deposits and other receivables, financial liabilities included in other payables and accrued charges, and interest-bearing borrowings, determining that their fair values approximate their carrying amounts[107] - The Group's unlisted investments refer to financial products issued by banks, with fair value estimated using a discounted cash flow valuation model[108] Assets Measured at Fair Value (As of June 30, 2025) | Item | Quoted prices in active markets (Level 1) (RMB thousands) | Significant observable inputs (Level 2) (RMB thousands) | Significant unobservable inputs (Level 3) (RMB thousands) | Total (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Financial assets at fair value through profit or loss | – | 4,000 | – | 4,000 | - As of June 30, 2025, and December 31, 2024, the Group had no financial liabilities measured at fair value[109] Events After Reporting Period As of the date of this interim report, no material events have occurred after June 30, 2025 - No material events have occurred after June 30, 2025[110] Definitions Definitions of Key Terms This section provides definitions for key terms used in the report, including ADMS System, Auction, Contact Person, Audit Committee, Board, China, Company, Corporate Governance Code, Directors, Electric Vehicle, Group, HKD, Hong Kong, IAS, IFRS, Listing, Listing Date, Listing Rules, Main Board, Model Code, OEM, Prospectus, Reporting Period, Professional Buyer, RMB, SFO, Shares, Shareholders, Stock Exchange, Subsidiary, Substantial Shareholder, Trade-in, and Used Car - "ADMS System" refers to the company's proprietary used car management system, designed to assist dealer groups in managing used car inventory, improving efficiency, and profitability[111] - "The Group" or "we" refers to the company and its subsidiaries from time to time[111] - "Used car" refers to a used passenger vehicle, meaning a motor vehicle designed and constructed primarily for the carriage of passengers, generally not exceeding eight seats in addition to the driver's seat[112]