金源氢化(02502) - 2025 - 中期财报

Management Discussion and Analysis Overview The Group is a supplier of hydrogenated benzene-based chemicals and energy products in Henan Province, sourcing raw materials from the coking industry and actively expanding its hydrogen energy business in response to national "dual carbon" goals - The Group is a supplier of hydrogenated benzene-based chemicals and energy products in Henan Province, primarily obtaining raw materials (crude benzene and coke oven gas) from the upstream coking industry[7] - In response to the Chinese government's encouragement of circular economy development and "dual carbon" goals, the Group is expanding its energy business to include hydrogen, commencing hydrogen refueling station operations in Q4 2023[7] - In H1 2025, the Group's revenue primarily derived from hydrogenated benzene-based chemicals, energy products (liquefied natural gas and coal gas), and trading (LNG, hydrogen, and refined oil products)[8] Financial Summary In H1 2025, the Group experienced significant declines in revenue, gross profit, and profit for the period, resulting in a basic loss per share, substantial drops in gross profit margin and net profit margin, and reductions in total assets and total equity 2025 H1 vs 2024 H1 Financial Summary | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Change (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | 1,442.2 | 1,602.1 | (159.9) | -10.0% | | Gross Profit | 22.5 | 71.8 | (49.3) | -68.7% | | (Loss) Profit for the Period | (9.3) | 44.9 | (54.2) | -120.7% | | Basic (Loss) Earnings Per Share (RMB) | (0.02) | 0.03 | (0.05) | -166.7% | | Gross Profit Margin | 1.6% | 4.5% | (2.9%) | -64.4% | | Net (Loss) Profit Margin | (0.6%) | 2.8% | (3.4%) | -121.4% | 2025 June 30 vs 2024 December 31 Balance Sheet Summary | Indicator | 2025 June 30 (RMB million) | 2024 December 31 (RMB million) | Change (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Total Assets | 1,605.2 | 1,676.4 | (71.2) | -4.2% | | Total Equity | 1,059.4 | 1,091.6 | (32.2) | -2.9% | Factors Affecting the Group's Operating Results and Financial Position The Group's operating results are influenced by China's overall economic conditions, downstream industry demand, raw material and product price fluctuations, production capacity and sales stability, and financing costs, with hydrogenated benzene-based chemicals and LNG prices particularly sensitive to oil and global LNG price movements - China's overall economic conditions affect product market prices, demand, and raw material prices, with an economic downturn potentially leading to lower product selling prices and requiring adjustments to procurement and sales strategies[11] - Sales of hydrogenated benzene-based chemicals and LNG primarily depend on domestic chemical industry consumption, with their prices influenced by crude oil prices and global LNG price fluctuations[12] - Fluctuations in raw material prices (crude benzene and coke oven gas) and changes in the price spread between products and raw materials are major risks, affected by upstream coal prices and macroeconomic conditions[13] Average Prices of Major Products and Raw Materials (RMB/tonne or cubic meter) | Product/Raw Material | 2025 H1 Average Selling Price | 2024 Average Selling Price | 2025 H1 Average Purchase Price | 2024 Average Purchase Price | | :--- | :--- | :--- | :--- | :--- | | Hydrogenated Benzene-based Chemicals | 5,668.57 | 6,734.73 | - | - | | Pure Benzene | 6,103.05 | 7,270.64 | - | - | | Toluene | - | 6,395.48 | - | - | | Coal Gas | 0.84 | 0.83 | - | - | | LNG | 3,993.39 | 4,197.57 | - | - | | Crude Benzene | - | - | 5,118.52 | 6,294.04 | | Coke Oven Gas | - | - | 0.62 | 0.60 | - In H1 2025, hydrogenated benzene-based chemicals production capacity was approximately 400,000 tonnes/year, LNG production facility capacity was approximately 72,000 tonnes/year, and hydrogen production capacity was approximately 317 million cubic meters/year, with stable capacity utilization and product sales[20] - As of June 30, 2025, interest-bearing borrowings amounted to approximately RMB 365.8 million, with financing costs of approximately RMB 7.9 million, accounting for approximately 0.55% of total revenue[21] Key Developments In H1 2025, the Group continued to invest in production efficiency, safety, and environmental protection, actively expanding its hydrogen refueling station business with two new stations, significantly increasing hydrogen sales volume and serviced vehicles - Investment of approximately RMB 1.2 million for the construction of a sulfur-containing wastewater stripping tower to save treatment costs and stabilize production[22] - During the period, 5 hydrogen refueling stations were in operation, with the addition of Jiyuan Huling Hydrogen Refueling Station and Dengfeng Guojiawa Hydrogen Refueling Station[23][24] Hydrogen Sales Volume at Hydrogen Refueling Stations (tonnes) | Hydrogen Refueling Station | 2025 H1 Sales Volume (tonnes) | 2024 H1 Sales Volume (tonnes) | | :--- | :--- | :--- | | Jiyuan Nanerhuan Hydrogen Refueling Station | 322 | 167 | | Zhengzhou Huagong Road Hydrogen Refueling Station | 179 | 63 | | Gongyi Heluo Hydrogen Refueling Station | 103 | 20 | | Jiyuan Huling Hydrogen Refueling Station | 133 | - | | Dengfeng Guojiawa Hydrogen Refueling Station | 73 | - | - The new policy for hydrogen-powered vehicles to enjoy free highway tolls promoted rapid growth in hydrogen-powered tractor transportation business[23] Operating Results In H1 2025, the Group's overall operating performance significantly declined, turning from profit to loss, with revenue decreasing by 10.0%, gross profit by 68.7%, and pre-tax profit shifting from profit to loss, primarily due to falling average selling prices of hydrogenated benzene-based chemicals, reduced government subsidies and large-denomination deposit interest income, asset disposal losses, and a decline in joint venture performance Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (RMB thousand) | Indicator | 2025 H1 | 2024 H1 | Change | | :--- | :--- | :--- | :--- | | Revenue | 1,442,220 | 1,602,071 | (159,851) | | Cost of Sales | (1,419,722) | (1,530,294) | 110,572 | | Gross Profit | 22,498 | 71,777 | (49,279) | | Other Income | 5,183 | 16,188 | (11,005) | | Other Gains and Losses | (2,384) | 3,201 | (5,585) | | Selling and Distribution Expenses | (6,920) | (7,556) | 636 | | Administrative Expenses | (20,829) | (21,780) | 951 | | Finance Costs | (7,938) | (8,088) | 150 | | Share of Results of a Joint Venture | (351) | 1,190 | (1,541) | | (Loss) Profit Before Tax | (10,741) | 54,932 | (65,673) | | Income Tax Credit (Expense) | 1,439 | (10,050) | 11,489 | | (Loss) Profit for the Period | (9,302) | 44,882 | (54,184) | | Total Comprehensive (Expense) Income for the Period | (9,332) | 45,108 | (54,440) | | Basic (Loss) Earnings Per Share (RMB) | (0.02) | 0.03 | (0.05) | - Revenue decreased by 10.0% year-on-year to RMB 1.4422 billion, primarily due to an approximately 18.3% drop in the average tax-inclusive price of hydrogenated benzene-based chemicals, despite a 10.6% increase in sales volume[28] - Gross profit margin declined from 4.5% to 1.6%, mainly because the decrease in hydrogenated benzene-based chemicals raw material purchase prices was less than the decrease in selling prices[28] - Other income decreased by RMB 11.005 million, primarily due to a RMB 6.6 million reduction in government subsidies and a RMB 4.1 million reduction in interest income from large-denomination deposits[29] - Other gains and losses shifted from a gain of RMB 3.201 million to a loss of RMB 2.384 million, mainly affected by asset disposal losses, fair value changes in bills receivable, and reduced exchange gains[30] - Share of results of a joint venture turned from a profit of RMB 1.19 million to a loss of RMB 0.351 million, primarily due to decreased sales volume and average selling price of Jinjiang Refining & Chemical[34] Business Segment Performance (RMB thousand) | Segment | 2025 Revenue | 2024 Revenue | 2025 Performance | 2024 Performance | 2025 Gross Profit Margin | 2024 Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Hydrogenated Benzene-based Chemicals | 1,110,256 | 1,229,506 | (17,993) | 15,790 | (1.6%) | 1.3% | | Energy Products | 282,881 | 303,937 | 36,083 | 46,323 | 12.8% | 15.2% | | Trading | 46,773 | 63,421 | 3,141 | 5,507 | 6.7% | 8.7% | - Hydrogenated benzene-based chemicals segment revenue decreased by 9.7%, and gross profit margin fell from 1.3% to -1.6%, mainly because the average selling price decline was greater than the raw material purchase price decline[37] - Energy products segment revenue decreased by 6.9%, and gross profit margin declined, primarily due to increased LNG production costs and a smaller increase in coal gas selling prices compared to raw materials[38] - Trading segment revenue decreased by 26.2%, and gross profit margin fell from 8.7% to 6.7%, mainly due to a significant drop in sales volume of diesel and gasoline at refueling stations[38] Financial Position The Group maintained good liquidity in H1 2025, but net cash from operating activities significantly decreased, total bank borrowings increased, the gearing ratio rose, and both return on equity and return on assets turned negative, with no significant off-balance sheet arrangements and the transfer of certain financial assets to settle payables or raise cash - In H1 2025, the Group's funds primarily came from product sales, shareholders' equity, and bank borrowings, with directors confirming no liquidity issues[39] Condensed Consolidated Cash Flow Statement Excerpts (RMB thousand) | Indicator | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Net Cash from Operating Activities | 42,950 | 104,201 | | Net Cash (Used in) Investing Activities | (21,132) | (67,741) | | Net Cash from Financing Activities | 461 | 46,321 | | Net Increase in Cash and Cash Equivalents | 22,279 | 82,781 | | Cash and Cash Equivalents at End of Period | 158,905 | 388,221 | - Net cash from operating activities significantly decreased, primarily attributable to a reduction in operating cash flow before working capital changes, partially offset by a decrease in inventories and an increase in contract liabilities[41] - Net cash used in investing activities decreased, mainly due to reduced purchases of property, plant, and equipment, partially offset by interest received on bank deposits and dividends from a joint venture[42] - Net cash from financing activities significantly decreased, primarily due to increased bank borrowings being offset by repayment of bank loans, dividend payments, and interest expenses[43] Bank Borrowings (RMB thousand) | Category | 2025 June 30 | 2024 December 31 | Increase/(Decrease) | | :--- | :--- | :--- | :--- | | Total Bank Borrowings | 365,843 | 334,040 | 31,803 | | Secured | 120,343 | 148,040 | (27,697) | | Unsecured | 245,500 | 186,000 | 59,500 | | Fixed-rate Borrowings | 59,800 | 65,000 | (5,200) | | Floating-rate Borrowings | 306,043 | 269,040 | 37,003 | | Amount Repayable within One Year | (276,404) | (231,395) | (45,009) | | Amount Repayable after One Year | 89,439 | 102,645 | (13,206) | - As of June 30, 2025, the Group obtained total bank credit facilities of approximately RMB 630.1 million, of which approximately RMB 254.3 million remained unutilized[47] - As of June 30, 2025, the total carrying amount of the Group's pledged assets was approximately RMB 31.1 million, used as collateral for bank credit facilities[49] Key Financial Ratios | Indicator | 2025 June 30 | 2024 December 31 | | :--- | :--- | :--- | | Gearing Ratio | 34.5% | 30.6% | | Return on Equity (Annualized) | -4.1% | -1.6% | | Return on Assets (Annualized) | -2.5% | 0.7% | - The gearing ratio increased to 34.5%, primarily due to an increase in total interest-bearing bank borrowings[52] - Return on equity decreased to -4.1%, mainly due to an increase in loss for the period attributable to owners of the Company[54] - Return on assets decreased to -2.5%, primarily due to total comprehensive income for the period turning from income to expense[56] - The Group has no significant off-balance sheet arrangements and has transferred bills receivable to settle payables or raise cash, with a maximum exposure of RMB 256.451 million[57][58] Market Risks The Group faces various market risks including commodity price fluctuations, interest rate volatility, credit concentration, and liquidity management, with management striving to mitigate risks through regular operational and financial activities and continuous monitoring to ensure risks are controllable - The Group faces commodity price risk from fluctuations in raw material prices (crude benzene and coke oven gas) and product market prices, which are influenced by chemical industry demand, macroeconomic conditions, and upstream coal prices[62] - The Group is exposed to cash flow interest rate risk related to floating-rate borrowings, with fixed-rate borrowings of approximately RMB 59.8 million, and management will consider hedging when necessary[63] - Credit risk is primarily concentrated in trade receivables and amounts due from shareholders and related parties, with the top five outstanding balances accounting for over 95.4%[64] - Liquidity risk is managed by monitoring and maintaining adequate levels of cash and cash equivalents to meet debt maturities and cash flow fluctuations[65] No Material Adverse Changes The Directors confirm that there have been no material adverse changes in the Group's financial or trading position from June 30, 2025, up to the date of this report - There have been no material adverse changes in the Group's financial or trading position from June 30, 2025, up to the date of this report[66] Dividends The Board of Directors resolved not to declare an interim dividend for H1 2025, primarily based on current period performance and financial position considerations - The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025[68] - Dividend distribution requires consideration of distributable reserves, liquidity levels, future commitments, and Chinese legal requirements[67] Pension Schemes The Group participates in defined contribution retirement benefit schemes for its employees in China and the Mandatory Provident Fund Scheme for its employees in Hong Kong, making contributions as required - The Group's employees in China participate in defined contribution retirement benefit schemes organized by the Chinese government, contributing a certain percentage of employees' monthly salaries[69] - Hong Kong employees participate in the Mandatory Provident Fund Scheme, with the Group contributing HKD 1,500 or 5% of the relevant monthly salary (whichever is lower) each month[69] Use of Proceeds from Listing The net proceeds from the Company's listing were approximately RMB 228.91 million, of which RMB 10.216 million was utilized for working capital and general corporate purposes as of June 30, 2025, with the remaining funds planned for hydrogen refueling facilities, investments/acquisitions, and working capital - Net proceeds from the listing were approximately RMB 228.91 million[70][71] Planned vs Actual Use of Net Proceeds from Listing (RMB thousand) | Business Purpose Disclosed in Prospectus | Planned Use of Net Proceeds | Actual Use of Net Proceeds from Jan 1 to Jun 30, 2025 | Unutilized Net Proceeds as of Jun 30, 2025 | Estimated Timeframe for Use | | :--- | :--- | :--- | :--- | :--- | | Refueling Stations with Hydrogen Refueling Facilities | 194,574 | 0 | 194,574 | 2025-2027 | | Investment and/or Acquisition of Upstream and Downstream Participants | 11,445 | 0 | 11,445 | 2025-2027 | | Working Capital and Other General Corporate Purposes | 22,891 | 10,216 | 12,674 | 2025-2027 | | Total | 228,910 | 10,216 | 218,693 | | Corporate Governance and Other Information Corporate Governance Philosophy The Company is committed to being a socially responsible enterprise, balancing economic and social benefits, and adhering to a prudent and efficient corporate governance philosophy, continuously improving its internal control system through internal and third-party audits - The Company adheres to combining economic and social benefits, committed to technological progress in the industry and fulfilling social responsibilities[72] - Upholding a prudent and efficient corporate governance philosophy, focusing on shareholder interests, and improving the internal control system through internal and third-party audits[72] Corporate Governance Code and Articles of Association The Company has formulated its Articles of Association and adopted the Corporate Governance Code in Appendix C1 of the Listing Rules to regulate its organization and conduct, adopting revised Articles of Association on January 22, 2025, and has complied with the Code provisions except for not having a dividend policy - The Company formulated its Articles of Association in accordance with the PRC Company Law and other relevant laws and regulations, governing its organization, conduct, and shareholder rights and obligations[73] - Adopted the Corporate Governance Code set out in Appendix C1 of the Listing Rules and established Nomination, Remuneration and Appraisal, and Audit Committees to achieve good corporate governance[73] - For the six months ended June 30, 2025, the Company has complied with all code provisions under the Listing Rules and the Code, except for not having a dividend policy in accordance with Code Provision F.1.1[74] - The Company adopted the revised Articles of Association on January 22, 2025[74] Directors' Securities Transactions The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers and confirmed that all Directors and Supervisors complied with the Model Code during the reporting period - The Company adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules[75] - Following specific enquiries, all Directors and Supervisors confirmed compliance with the Model Code for the six months ended June 30, 2025[75] Board of Directors and Supervisory Committee The Company's Board of Directors comprises eight directors, including two executive directors, three non-executive directors, and three independent non-executive directors, while the Supervisory Committee consists of three supervisors, with some changes in director appointments during the reporting period - The first session of the Board of Directors consists of eight directors, including two executive directors, three non-executive directors, and three independent non-executive directors, serving a three-year term until July 28, 2026[76] - The first session of the Supervisory Committee consists of three supervisors, serving a three-year term[76] - Ms. Huang Xinqi resigned as an independent non-executive director of Duoxiangyun Holdings Limited effective June 27, 2025, and was appointed as an independent non-executive director of RemeGen Co., Ltd. effective June 30, 2025[76][77] - Mr. Wang Lijie was appointed as an executive director of Henan Jinma Energy Company Limited effective June 16, 2025[78] - Mr. Rao Zhaohui resigned as Chairman and executive director of Henan Jinma Energy Company Limited effective June 16, 2025, and was appointed as a non-executive director effective September 5, 2025[78] Interests of Directors, Supervisors and Chief Executive in Securities As of June 30, 2025, no Director, Supervisor, or Chief Executive held disclosable interests in the Company's shares, however, non-executive directors Mr. Rao Zhaohui and Mr. Wang Lijie held interests in the associated corporation Henan Jinma Energy Company Limited - As of June 30, 2025, no Director, Supervisor, or Chief Executive had any interests or short positions in the shares, underlying shares, or debentures of the Company that were required to be recorded in the register or notified to the Company[79] Directors' Interests in Henan Jinma Energy Company Limited | Name | Nature of Interest | Class of Shares | Number of Shares Held | Approximate Percentage | | :--- | :--- | :--- | :--- | :--- | | Mr. Rao Zhaohui | Interest in controlled corporation | H Shares | 162,000,000 (L) | 30.26% | | Mr. Rao Zhaohui | Beneficial owner | H Shares | 2,681,000 (L) | 0.50% | | Mr. Wang Lijie | Interest in controlled corporation | H Shares | 42,900,000 (L) | 8.01% | Interests of Directors and Supervisors in Transactions, Arrangements or Contracts During the reporting period, no Director, Supervisor, or their associated entities were involved in or held significant interests in any transactions, arrangements, or contracts material to the Group's business - During the reporting period or as of June 30, 2025, no Director or Supervisor, or any entity connected with such Director or Supervisor, was a party to, or had a material direct or indirect interest in, any transaction, arrangement, or contract to which the Company, its holding company, or any of its subsidiaries or fellow subsidiaries was a party and which was significant to the Group's business[83] Arrangement to Purchase Shares or Debentures During the reporting period, neither the Company, its holding company, nor any of its subsidiaries or fellow subsidiaries made any arrangements to enable Directors to acquire rights through the purchase of shares or debentures - At no time during the reporting period did the Company, its holding company, or any of its subsidiaries or fellow subsidiaries make any arrangements to enable Directors to acquire rights through the purchase of shares or debentures of the Company or any other body corporate[84] Major Shareholders' Interests in Securities As of June 30, 2025, Jinma Energy was the Company's major shareholder, holding approximately 75% of the Company's equity directly and indirectly Major Shareholders' Interests in the Company's Securities | Name/Designation | Nature of Interest | Class of Shares | Number of Shares Held | Approximate Percentage | | :--- | :--- | :--- | :--- | :--- | | Jinma Energy | Beneficial owner | H Shares | 713,380,000 (L) | 74.65% | | Jinma Energy | Interest in controlled corporation | H Shares | 3,350,000 (L) | 0.35% | - Jinma Energy indirectly holds interests in the Company through its wholly-owned subsidiary, Shanghai Jinma Energy Co., Ltd[92] Sufficiency of Public Float Since the listing date and up to the date of this report, the Company has maintained a sufficient public float as required by the Listing Rules - Since the listing date and up to the date of this report, the Company has maintained a sufficient public float as required by the Listing Rules[88] Purchase, Sale and Redemption of the Company's Securities For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[89] Employees and Remuneration Policy As of June 30, 2025, the Group had 397 employees, with employee costs of approximately RMB 21.58 million, a decrease year-on-year; the Company has a Remuneration and Appraisal Committee, provides social insurance and housing provident fund for employees according to regulations, and implements annual training programs - As of June 30, 2025, the Group had a total of 397 employees, with employee costs of approximately RMB 21.58 million, a decrease from RMB 23.98 million in the same period last year[90] - The Remuneration and Appraisal Committee is responsible for recommending remuneration packages for Directors and senior management, reviewing remuneration policies based on the Group's operating performance, individual performance, and market practices[90] - The Group makes full contributions to social insurance (including pension schemes, medical insurance, work injury insurance, unemployment insurance, and maternity insurance) and housing provident funds for all employees[90] - Management formulates annual training programs covering management, finance, safety, environmental protection, equipment, and processes, committed to employees' personal growth[91] Independent Auditor's Report Introduction Deloitte Touche Tohmatsu has reviewed the condensed consolidated financial statements of Henan Jinyuan Hydrogenated Chemicals Co., Ltd. and its subsidiaries for the six months ended June 30, 2025, prepared in accordance with International Accounting Standard 34 and the Listing Rules - Deloitte Touche Tohmatsu has reviewed the Company's condensed consolidated financial statements for the six months ended June 30, 2025[96] - The condensed consolidated financial statements were prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and the relevant requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[96] Scope of Review The review was conducted in accordance with International Standard on Review Engagements 2410, primarily involving inquiries, analytical procedures, and other review procedures, with a scope smaller than an audit, thus no audit opinion was expressed - The review was conducted in accordance with International Standard on Review Engagements 2410 issued by the International Auditing and Assurance Standards Board[97] - The scope of a review is substantially less than an audit conducted in accordance with International Standards on Auditing, therefore, it does not provide assurance that all significant matters that might be identified in an audit would be identified, and no audit opinion was expressed[97] Conclusion Based on the review, the auditor believes that the condensed consolidated financial statements have been prepared in all material respects in accordance with International Accounting Standard 34 - Based on the review, nothing has come to the auditor's attention that causes them to believe that the condensed consolidated financial statements are not prepared, in all material respects, in accordance with International Accounting Standard 34[98] Interim Results Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the Group recorded a loss for the period of RMB 9.302 million, compared to a profit of RMB 44.882 million in the prior year, primarily affected by decreased revenue, reduced gross profit, and other income and gains/losses Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (RMB thousand) | Indicator | 2025 June 30 | 2024 June 30 | | :--- | :--- | :--- | | Revenue | 1,442,220 | 1,602,071 | | Gross Profit | 22,498 | 71,777 | | (Loss) Profit Before Tax | (10,741) | 54,932 | | (Loss) Profit for the Period | (9,302) | 44,882 | | Total Comprehensive (Expense) Income for the Period | (9,332) | 45,108 | | (Loss) Profit for the Period Attributable to Owners of the Company | (20,231) | 30,233 | | Basic (Loss) Earnings Per Share (RMB) | (0.02) | 0.03 | Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets were RMB 1.6052 billion and total equity was RMB 1.0594 billion, both decreasing from December 31, 2024, with net current assets of RMB 119.0 million Condensed Consolidated Statement of Financial Position (RMB thousand) | Indicator | 2025 June 30 | 2024 December 31 | | :--- | :--- | :--- | | Non-current Assets | 1,053,645 | 1,085,713 | | Current Assets | 551,593 | 590,685 | | Current Liabilities | 432,544 | 456,779 | | Net Current Assets | 119,049 | 133,906 | | Total Assets Less Current Liabilities | 1,172,694 | 1,219,619 | | Total Equity | 1,059,368 | 1,091,550 | | Non-current Liabilities | 113,326 | 128,069 | Condensed Consolidated Statement of Changes in Equity As of June 30, 2025, equity attributable to owners of the Company was RMB 965.1 million, a decrease from the beginning of the period, with total comprehensive expense for the period of RMB 20.261 million and dividends of RMB 22.85 million distributed to non-controlling interests Condensed Consolidated Statement of Changes in Equity (RMB thousand) | Indicator | As of Jan 1, 2025 | Total Comprehensive (Expense) Income for the Period | Dividends Recognized as Distribution | Transfer | As of Jun 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | Equity Attributable to Owners of the Company | 985,373 | (20,261) | - | - | 965,112 | | Non-controlling Interests | 106,177 | 10,929 | (22,850) | - | 94,256 | | Total | 1,091,550 | (9,332) | (22,850) | - | 1,059,368 | - Capital reserve primarily includes reserves arising from pre-listing company reorganization and share premium from H-share issuance[107] - Statutory surplus reserve fund requires 10% of after-tax profit to be transferred to this fund in accordance with Chinese law[107] - Special reserve, established according to regulations issued by the Ministry of Finance and the Ministry of Emergency Management, is used for improving safety production environments and facilities and is not distributable to shareholders[107] Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2025, net cash from operating activities was RMB 42.95 million, net cash used in investing activities was RMB 21.132 million, and net cash from financing activities was RMB 0.461 million, with cash and cash equivalents at the end of the period totaling RMB 158.905 million Condensed Consolidated Statement of Cash Flows (RMB thousand) | Indicator | 2025 June 30 | 2024 June 30 | | :--- | :--- | :--- | | Net Cash from Operating Activities | 42,950 | 104,201 | | Net Cash Used in Investing Activities | (21,132) | (67,741) | | Net Cash from Financing Activities | 461 | 46,321 | | Net Increase in Cash and Cash Equivalents | 22,279 | 82,781 | | Cash and Cash Equivalents at End of Period | 158,905 | 388,221 | Notes to the Condensed Consolidated Financial Statements This section details key financial information including the basis of preparation, significant accounting policies, revenue and segment information, other income, other gains and losses, finance costs, profit before tax, income tax, dividends, earnings per share, property, plant and equipment, deferred tax, receivables, borrowings, payables, transfer of financial assets, fair value measurement of financial instruments, and related party transactions - The condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 and the Listing Rules of the Hong Kong Stock Exchange, with accounting policies consistent with the 2024 annual consolidated financial statements[111][112] Revenue from Contracts with Customers (RMB thousand) | Segment | 2025 H1 Total | 2024 H1 Total | | :--- | :--- | :--- | | Hydrogenated Benzene-based Chemicals | 1,110,256 | 1,229,506 | | Energy Products | 343,353 | 362,937 | | Trading | 84,046 | 93,070 | | Other Services | 3,817 | 5,245 | | Total Revenue from Contracts with Customers | 1,541,472 | 1,690,758 | | Offsetting | (99,252) | (88,687) | | Consolidated Revenue | 1,442,220 | 1,602,071 | - Revenue is recognized when control of the product is transferred, i.e., when products are delivered to the specified location or when customers purchase goods; credit terms for some long-term customers are within 60 days, while other customers require prepayment[122] - The Group's operating segments include sales of hydrogenated benzene-based chemicals, energy products, trading, and other services[123] Segment Revenue and Results (RMB thousand) | Segment | 2025 H1 External Sales | 2025 H1 Segment Results | 2024 H1 External Sales | 2024 H1 Segment Results | | :--- | :--- | :--- | :--- | :--- | | Derivative Chemicals | 1,110,256 | (17,993) | 1,229,506 | 15,790 | | Energy Products | 282,881 | 36,083 | 303,937 | 46,323 | | Trading | 46,773 | 3,141 | 63,421 | 5,507 | | Other Services | 2,310 | 1,915 | 5,207 | 4,378 | | Total | 1,442,220 | 23,146 | 1,602,071 | 71,998 | - All revenue from external customers and non-current assets are located in China[127] Other Income (RMB thousand) | Item | 2025 June 30 | 2024 June 30 | | :--- | :--- | :--- | | Interest Income from Bank Deposits | 2,058 | 7,193 | | Government Subsidies | 507 | 7,103 | | Total | 5,183 | 16,188 | Other Gains and Losses (RMB thousand) | Item | 2025 June 30 | 2024 June 30 | | :--- | :--- | :--- | | Fair Value (Loss) of Bills Receivable at Fair Value Through Other Comprehensive Income | (1,303) | (2,184) | | (Loss) Gain on Disposal/Write-off of Property, Plant and Equipment | (1,599) | 2 | | Net Foreign Exchange (Loss) Gain | (146) | 4,839 | | Total | (2,384) | 3,201 | Finance Costs (RMB thousand) | Item | 2025 June 30 | 2024 June 30 | | :--- | :--- | :--- | | Interest Expense on Bank Borrowings | 7,836 | 7,984 | | Interest Expense on Lease Liabilities | 102 | 104 | | Total | 7,938 | 8,088 | Components of (Loss) Profit Before Tax (RMB thousand) | Item | 2025 June 30 | 2024 June 30 | | :--- | :--- | :--- | | Total Staff Costs | 21,579 | 23,984 | | Capitalized in Inventories | (14,070) | (14,649) | | Staff Costs Recognized as Expense | 7,509 | 9,335 | | Total Depreciation and Amortization | 40,309 | 40,041 | | Capitalized in Inventories | (34,984) | (34,516) | | Depreciation and Amortization Recognized as Expense | 5,325 | 5,525 | | Cost of Inventories Recognized as Expense | 1,419,074 | 1,530,073 | Income Tax (Credit) Expense (RMB thousand) | Item | 2025 June 30 | 2024 June 30 | | :--- | :--- | :--- | | PRC Enterprise Income Tax - Current Tax | 6,160 | 10,181 | | Deferred Tax | (7,899) | (1,093) | | Total | (1,439) | 10,050 | - No dividends were declared during this interim period, nor did the Directors recommend any dividend declaration[134][135] - Basic loss per share was RMB 0.02, with a weighted average number of ordinary shares of 955.64 million, and no dilutive effect[136] - Construction costs of RMB 5.362 million were incurred during this interim period, primarily for hydrogen refueling station construction, and ancillary equipment with a total carrying amount of RMB 2.13 million was disposed of or written off, resulting in a loss of RMB 1.599 million[137] Deferred Tax Assets/Liabilities (RMB thousand) | Item | 2025 June 30 | 2024 December 31 | | :--- | :--- | :--- | | Deferred Tax Assets | 27,540 | 19,726 | | Deferred Tax Liabilities | (1,450) | (1,545) | | Total | 26,090 | 18,181 | - The Group has unutilized tax losses of RMB 136.036 million available to offset future profits, with deferred tax assets of RMB 27.709 million recognized[138] Trade and Other Receivables (RMB thousand) | Item | 2025 June 30 | 2024 December 31 | | :--- | :--- | :--- | | Trade Receivables - Customer Contracts | 7,288 | 7,792 | | Prepayments to Suppliers | 15,612 | 12,293 | | Total | 29,303 | 30,722 | - Amounts due from shareholders were RMB 0.338 million, from parent company Jinma Energy, with an aging within 90 days[143] Amounts Due from Related Parties (RMB thousand) | Item | 2025 June 30 | 2024 December 31 | | :--- | :--- | :--- | | Xinyang Steel Jingang Energy Co., Ltd. | 23,411 | 23,411 | | Henan Bohai Chemical Co., Ltd. | 343 | - | | Total | 23,754 | 23,411 | Borrowings (RMB thousand) | Item | 2025 June 30 | 2024 December 31 | | :--- | :--- | :--- | | Total Bank Borrowings | 365,843 | 334,040 | | Fixed-rate Borrowings Effective Annual Interest Rate | 3.40%-4.10% | 3.50%-4.10% | | Floating-rate Borrowings Effective Annual Interest Rate | 3.00%-5.40% | 3.41%-5.60% | Trade and Other Payables (RMB thousand) | Item | 2025 June 30 | 2024 December 31 | | :--- | :--- | :--- | | Trade Payables | 7,394 | 13,881 | | Bills Payable | - | 5,000 | | Consideration Payable for Property, Plant and Equipment | 94,478 | 114,510 | | Total | 118,138 | 193,106 | - Amounts due to shareholders were RMB 2.862 million, from Jinma Energy, with an aging within 90 days[152][153] Endorsed and Discounted Bills Receivable with Recourse Not Yet Recovered (RMB thousand) | Item | 2025 June 30 | 2024 December 31 | | :--- | :--- | :--- | | Endorsed Bills to Settle Payables | 74,048 | 72,285 | | Discounted Bills to Raise Cash | 182,403 | 174,508 | | Total | 256,451 | 246,793 | - The fair value of bills receivable at fair value through other comprehensive income was RMB 41.479 million, valued using discounted cash flow techniques[157] Related Party Transactions (RMB thousand) | Transaction Type | Related Party | 2025 June 30 | 2024 June 30 | | :--- | :--- | :--- | :--- | | Sales of Products and Services to Related Parties | Jinma Energy | 4,255 | 8,362 | | | Bohai Chemical | 7,560 | 18,240 | | | Jinjiang Refining & Chemical | 44,198 | 52,407 | | Purchases of Raw Materials and Services from Related Parties | Jinma Energy | 86,886 | 149,338 | | | Jinma Middle East | 178,429 | 183,666 | | | Jinjiang Refining & Chemical | 5,098 | 10,773 | Key Management Personnel Remuneration (RMB thousand) | Item | 2025 June 30 | 2024 June 30 | | :--- | :--- | :--- | | Salaries and Allowances | 875 | 578 | | Performance-related Bonuses | 15 | 530 | | Retirement Benefits | 74 | 66 | | Total | 964 | 1,174 | Company Information Basic Company Information The Company, Henan Jinyuan Hydrogenated Chemicals Co., Ltd., with stock code 2502, is listed on the Hong Kong Stock Exchange, with its registered office in Jiyuan City, Henan Province, China, and its principal place of business in Hong Kong located in Quarry Bay - Company Name: Henan Jinyuan Hydrogenated Chemicals Co., Ltd[165] - Stock Code: 2502, H shares listed on The Stock Exchange of Hong Kong Limited[165] - Registered Office and Principal Place of Business in China: South of Xiyihuan Road, Jiyuan City, Henan Province, China[165] - Principal Place of Business in Hong Kong: 17th Floor, One Island East, Taikoo Place, 18 Westlands Road, Quarry Bay, Hong Kong[165] Board of Directors Members The Board of Directors comprises Executive Directors Mr. Wang Zengguang (General Manager) and Mr. Qiao Erwei (Deputy General Manager and Company Secretary), Non-executive Directors Mr. Rao Zhaohui (Chairman), Mr. Wang Kaibao (Vice Chairman), and Mr. Wang Lijie, and Independent Non-executive Directors Ms. Huang Xinqi, Mr. Di Zhigang, and Ms. Liang Shanying - Executive Directors: Mr. Wang Zengguang (General Manager), Mr. Qiao Erwei (Deputy General Manager and Company Secretary)[165] - Non-executive Directors: Mr. Rao Zhaohui (Chairman), Mr. Wang Kaibao (Vice Chairman), Mr. Wang Lijie[165] - Independent Non-executive Directors: Ms. Huang Xinqi, Mr. Di Zhigang, Ms. Liang Shanying[165] Supervisory Committee Members The Supervisory Committee members include Mr. Huang Ziliang (Chairman), Mr. Wu Zhiqiang, and Mr. Li Hebao - Supervisors: Mr. Huang Ziliang (Chairman), Mr. Wu Zhiqiang, Mr. Li Hebao[165] Committee Members Ms. Huang Xinqi chairs the Audit Committee, Mr. Di Zhigang chairs the Remuneration and Appraisal Committee, Ms. Liang Shanying chairs the Nomination Committee, and Mr. Wang Kaibao chairs the Strategy Committee - Audit Committee Chairman: Ms. Huang Xinqi (Independent Non-executive Director)[165] - Remuneration and Appraisal Committee Chairman: Mr. Di Zhigang[166] - Nomination Committee Chairman: Ms. Liang Shanying[166] - Strategy Committee Chairman: Mr. Wang Kaibao[166] Company Secretary and Authorized Representatives Ms. Li Kunying serves as the Company Secretary, and Mr. Wang Zengguang and Ms. Li Kunying are the Authorized Representatives - Company Secretary: Ms. Li Kunying[166] - Authorized Representatives: Mr. Wang Zengguang, Ms. Li Kunying[166] Auditor The Company's auditor is Deloitte Touche Tohmatsu - Auditor: Deloitte Touche Tohmatsu[166] Legal Advisers The PRC legal adviser is Shanghai Panming Law Firm, and the Hong Kong legal adviser is Reed Smith Richards Butler LLP - PRC Legal Adviser: Shanghai Panming Law Firm[166] - Hong Kong Legal Adviser: Reed Smith Richards Butler LLP[166] H Share Registrar The H Share Registrar is Hong Kong Registrars Limited - H Share Registrar: Hong Kong Registrars Limited[166] Principal Banks The Group's principal banks include branches of Industrial and Commercial Bank of China, Bank of China, Shanghai Pudong Development Bank, CITIC Bank, Guangfa Bank, Zhongyuan Bank, and China Merchants Bank in China, as well as Bank of China (Hong Kong) Limited - Principal Banks include Industrial and Commercial Bank of China Jiyuan Branch, Bank of China Jiyuan Branch, Shanghai Pudong Development Bank Zhengzhou Branch, CITIC Bank Zhengzhou Branch, Guangfa Bank Zhengzhou Shangdu Road Sub-branch, Zhongyuan Bank Jiyuan Branch, Bank of China (Hong Kong) Limited Metroplaza Branch, and China Merchants Bank Zhengzhou Branch[167] Definitions General Terms This section defines general terms commonly used in the report, such as "Board," "China," "Code," and "Company," to ensure clear understanding of the report content - "Board" refers to the Board of Directors of the Company[169] - "China" refers to the People's Republic of China, excluding Taiwan, the Macao Special Administrative Region of China, and the Hong Kong Special Administrative Region[169] - "Company" or "the Company" refers to Henan Jinyuan Hydrogenated Chemicals Co., Ltd[169] - "Hong Kong Stock Exchange" or "the Stock Exchange" refers to The Stock Exchange of Hong Kong Limited[169] Technical Terms This section explains financial and technical terms used in the report, such as the calculation methods for "Basic Loss Per Share," "Current Ratio," "Gearing Ratio," "Return on Assets," and "Return on Equity" - "Basic Loss Per Share" is calculated by dividing the profit attributable to owners of the Company by the weighted average number of ordinary shares outstanding during the year[171] - "Current Ratio" is calculated by dividing total current assets by total current liabilities[171] - "Gearing Ratio" is calculated by dividing total interest-bearing bank borrowings by total equity[171] - "Return on Assets" is calculated by dividing profit and total comprehensive income by average total assets[171] - "Return on Equity" is calculated by dividing profit attributable to owners of the Company by average equity attributable to owners of the Company[171] Company Abbreviations This section lists the abbreviations and full names of companies mentioned in the report for clear identification by readers - "Jinma Energy" refers to Henan Jinma Energy Company Limited[172] - "Jinma Group" refers to Jinma Energy and its subsidiaries (excluding the Group)[172] - "Jinjiang Refining & Chemical" refers to Henan Jinjiang Refining & Chemical Co., Ltd[172]