途虎养车(09690) - 2025 - 中期财报

Company Information Company Basic Information Tuhu Car Inc. is a limited company incorporated in the Cayman Islands, primarily offering automotive products and services in China via its app, website, and WeChat mini-program - Tuhu Car Inc. was incorporated in the Cayman Islands on July 8, 2019, primarily providing automotive products and services in China through its online platforms[3][192] - Mr. Chen Min serves as the Chairman of the Board and Chief Executive Officer, with Ernst & Young as the auditor[6] Dual-Class Share Structure The company employs a dual-class share structure, granting Class B shares ten votes per share compared to one vote per Class A share, ensuring voting control for the Differentiated Voting Rights Beneficiary (Mr. Chen Min) to pursue long-term strategies without majority economic interest - The company adopts a dual-class share structure, with Class A shares having one vote per share and Class B shares having ten votes per share (except for specific resolutions), aiming to ensure the continuous leadership of the Differentiated Voting Rights Beneficiary (Mr. Chen Min)[9] - As of the Latest Practicable Date, Mr. Chen Min owned and controlled approximately 48.27% of the company's issued share voting rights[11] - Class B shares are convertible into Class A shares on a one-to-one basis, and differentiated voting rights will terminate under specific circumstances, such as the beneficiary's death or cessation of board membership[11] Financial Summary and Key Operating Metrics Financial Summary In the first half of 2025, the company's revenue grew by 10.5% year-on-year to RMB 7.877 billion, with gross profit increasing by 7.4% to RMB 1.982 billion, demonstrating robust profitability amidst market adjustments 2025 H1 Financial Summary (RMB thousands) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Period Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 7,876,938 | 7,126,161 | 10.5 | | Gross Profit | 1,982,131 | 1,845,765 | 7.4 | | Operating Profit | 221,929 | 211,884 | 4.7 | | Profit for the Period | 306,535 | 284,332 | 7.8 | | Adjusted EBITDA | 483,349 | 449,619 | 7.5 | | Adjusted Net Profit | 410,460 | 358,164 | 14.6 | Key Operating Metrics As of June 30, 2025, the number of Tuhu workshops reached 7,205, a 14.2% year-on-year increase, while transacting and registered users also grew significantly by 23.8% and 18.8% respectively, indicating continuous user base expansion 2025 H1 Key Operating Metrics | Indicator | June 30, 2025 | June 30, 2024 | Period Change (%) | | :--- | :--- | :--- | :--- | | Tuhu Workshop Stores | 7,205 | 6,311 | 14.2 | | - Self-operated Stores | 160 | 149 | 7.4 | | - Franchise Stores | 7,045 | 6,162 | 14.3 | | Transacting Users (millions) | 26.5 | 21.4 | 23.8 | | Registered Users (millions) | 150.3 | 126.4 | 18.8 | Chairman's Report Business Review In the first half of 2025, China's automotive service industry faced significant adjustments with contracting market demand and increased consumer focus on value, while Tuhu Car achieved high-quality growth through standardized service networks, digital efficiency, and government policy collaboration - China's automotive service industry experienced a period of deep adjustment in the first half of 2025, with a temporary contraction in market demand, increased consumer focus on value, and growing demand for car wash, detailing, and quick repair services for new energy vehicles and existing car models[15] - Tuhu Car achieved high-quality development through its standardized service network, digital efficiency, and active response to government "trade-in" policies, expanding its store count to over 7,000, with transaction user satisfaction exceeding 95% and a repurchase rate of 64%[16] Financial Summary In the first half of 2025, Tuhu Car's total revenue reached RMB 7.9 billion, a 10.5% year-on-year increase, maintaining its leading position in China's independent automotive service market, while adjusted net profit grew by 14.6% to RMB 410 million and free cash flow increased by 32.2% to RMB 347 million - Total revenue in the first half of 2025 reached RMB 7.9 billion, a 10.5% year-on-year increase, maintaining its position as the largest independent automotive service market player in China[17] - Adjusted net profit RMB 410 million, a 14.6% year-on-year increase; free cash flow RMB 347 million, a 32.2% year-on-year increase[20] - As of the end of the reporting period, the company held approximately RMB 7.5 billion in total cash reserves, indicating ample funding[20] Platform Operations As of the end of the first half of 2025, Tuhu Car's cumulative twelve-month transacting users reached 26.5 million and average monthly active users reached 13.5 million, with the company enhancing user experience through AI-powered smart customer service, leading to improved conversion rates and reduced labor costs - As of the end of the first half of 2025, cumulative twelve-month transacting users reached 26.5 million, and average monthly active users reached 13.5 million, representing year-on-year increases of 23.8% and 17.5% respectively[21] - Han Han was invited as the first "Professional Brand Ambassador" to reinforce the brand image of "Professional Tuhu, Reliable Car Maintenance"[21] - Continuous collaboration with authoritative institutions for product testing and establishment of the first professional film product testing laboratory among domestic automotive service platforms[22] - Deep renovation of the smart customer service system based on the DeepSeek large model resulted in a 2 percentage point increase in pre-sales conversion rate, a 7 percentage point increase in smart customer service satisfaction, and an 18% reduction in customer service labor costs[25] Store Expansion and Operations As of June 30, 2025, Tuhu workshop stores expanded to 7,205 across 320 prefecture-level and 1,855 county-level administrative divisions, with the company supporting franchisees through various programs, leading to improved profitability and increased same-store fulfillment user numbers - As of June 30, 2025, the number of Tuhu workshop stores reached 7,205, covering 320 prefecture-level administrative divisions and 1,855 county-level administrative divisions nationwide, with county-level coverage increasing to 70%[27] - Launched the "Youth Automotive Service Talent Entrepreneurship Support Program" and the "Ten Billion Subsidy, Ten Thousand Stores Together" program to support franchisee development[28] - In the first half of the year, the profitability ratio of new franchised workshop stores increased by over 5 percentage points year-on-year, same-store fulfillment user numbers grew by over 7% year-on-year, and approximately 90% of franchised stores operating for more than six months remained profitable[31] - Innovatively launched the "Smart Quotation" function, strengthened store capability building, and ensured service quality through the "New Store Improvement Program" and refined management[30][31] Products and Services Tires Facing sluggish growth in the replacement tire industry, Tuhu Car strengthened its market position by deepening cooperation with international brands and leveraging domestic brands, achieving double the year-on-year sales growth in lower-tier markets compared to higher-tier cities - The tire business consolidated its market-leading position by deepening cooperation with international brands like Michelin and Continental, and by capitalizing on the growth dividends of domestic brands[33] - In lower-tier markets, the year-on-year growth rate of tire sales volume was twice that of higher-tier cities, demonstrating the effectiveness of refined recommendation strategies[33] Car Maintenance In car maintenance, Tuhu Car collaborated with international brands to offer high-quality, low-price engine oil products and upgraded its private label entry-level products, resulting in over 60% year-on-year growth in low-price segment engine oil sales and user volume, while battery services expanded with doubled coverage for "28-minute guaranteed delivery or compensation" service - In the engine oil category, Tuhu collaborated with international brands to launch high-quality, low-price products and upgraded its private label offerings, leading to a significant year-on-year increase of over 60% in low-price segment engine oil sales volume and user numbers in the first half of the year[34] - Battery services optimized rapid on-site installation service network coverage, doubling the number of car owners covered by the "28-minute guaranteed delivery or compensation" service year-on-year[37] - Brake disc and pad sales increased by over 40% year-on-year, and air filter sales year-on-year increased by approximately 30%[37] Other Products and Services Quick repair service revenue surged by over 60% year-on-year, maintaining over 10% penetration among Tuhu transacting users, while deep detailing services saw private label product revenue exceed 70%, with approximately 60% of sales coming from new car owners - Quick repair service revenue increased by over 60% year-on-year, maintaining a penetration rate of over 10% among Tuhu transacting users[38] - Private label product revenue for deep detailing services exceeded 70%, with approximately 60% of sales generated from new car owners with vehicles less than one year old[39] New Energy Vehicle Business Tuhu Car actively expanded its new energy vehicle business by introducing specialized tires and hybrid engine oils, and offering power battery inspection and out-of-warranty "three-electric" repair services, leading to a 83.5% year-on-year increase in new energy vehicle transacting users to 3.4 million - Launched new energy vehicle-specific tires, accounting for over 15% of private label product sales, and offered "lifetime warranty" services[41] - New energy vehicle hybrid engine oil paying user volume increased by over 120% year-on-year[41] - Initiated power battery inspection and out-of-warranty "three-electric" (battery, motor, electronic control) repair services for new energy vehicles[42] - For the twelve months ended June 30, 2025, the number of new energy vehicle transacting users reached 3.4 million, an 83.5% year-on-year increase, accounting for over 12% of the platform's total transacting users[42] Supply Chain and Logistics As of June 30, 2025, Tuhu Car operated 258 self-operated delivery routes, covering 32 regional warehouses, 662 front-end warehouses, and 7,205 workshop stores, achieving an 83% same-day/next-day delivery rate and a 0.5 percentage point reduction in overall fulfillment cost ratio, while exploring smart logistics with automated warehouses and unmanned delivery vehicles - As of June 30, 2025, the company operated 258 self-operated delivery routes, covering 32 regional warehouses, 662 front-end warehouses, and 7,205 workshop stores[44] - In the first half of the year, the same-day/next-day delivery rate increased by approximately 6 percentage points to 83%, and the overall fulfillment cost ratio decreased by 0.5 percentage points year-on-year[44] - The Guangzhou automated benchmark warehouse commenced trial operations, expected to reduce labor costs by 60% and increase efficiency by 2.5 times[44] - Exploring smart logistics and unmanned delivery, with unmanned delivery vehicles deployed in cities like Nanjing and Chengdu[45] Environmental, Social and Governance In the first half of 2025, Tuhu Car actively fulfilled its corporate social responsibility by joining the "Caihua Convention" to support people with disabilities, launching public service initiatives, and collaborating with the Central Committee of the Communist Youth League to foster young talent in the automotive service industry - Joined the "Caihua Convention" to promote services for people with disabilities and launched public service projects such as "Open During Spring Festival" and "Gaokao Assistance"[46] - Collaborated with a direct affiliate of the Central Committee of the Communist Youth League to launch the "Youth Automotive Service Talent Entrepreneurship Support Program," nurturing young talent in the automotive service industry[46] - Awarded "Top 100 Chain Enterprises in Life Service Industry" (first place in automotive aftermarket) and "Minhang District Corporate Social Responsibility Award"[48] Concluding Remarks Founder, Chairman of the Board, and CEO Mr. Chen Min reaffirmed the company's commitment to long-termism, leading industry development with professionalism and resilience, and expressed gratitude to all supporters - Founder Mr. Chen Min emphasized the company's continued commitment to long-termism, leading industry development with professionalism and resilience[49] Management Discussion and Analysis Selected Consolidated Statement of Profit or Loss Items In the first half of 2025, the company's revenue increased by 10.5% to RMB 7.877 billion, gross profit grew by 7.4% to RMB 1.982 billion, profit for the period was RMB 307 million, and adjusted net profit was RMB 410 million, up 14.6% year-on-year 2025 H1 Selected Consolidated Statement of Profit or Loss Items (RMB thousands) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 7,876,938 | 7,126,161 | | Cost of Sales | (5,894,807) | (5,280,396) | | Gross Profit | 1,982,131 | 1,845,765 | | Operating Profit | 221,929 | 211,884 | | Profit for the Period | 306,535 | 284,332 | | Adjusted EBITDA | 483,349 | 449,619 | | Adjusted Net Profit | 410,460 | 358,164 | Revenue Analysis Total revenue for the first half of 2025 increased by 10.5% to RMB 7.9 billion, driven by a 10.8% growth in automotive products and services revenue due to network expansion and customer base growth, and a 6.6% increase in advertising, franchise, and other services revenue - For the six months ended June 30, 2025, total revenue was RMB 7.9 billion, an increase of 10.5% compared to the same period in 2024[54] 2025 H1 Revenue Breakdown (RMB thousands) | Revenue Category | 2025 (RMB thousands) | Share (%) | 2024 (RMB thousands) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Automotive Products and Services | 7,362,402 | 93.5 | 6,643,280 | 93.2 | | - Individual End Customers | 6,632,821 | 84.2 | 5,970,096 | 83.8 | | -- Tires and Chassis Parts | 3,285,204 | 41.7 | 2,972,618 | 41.7 | | -- Car Maintenance | 2,906,881 | 36.9 | 2,617,725 | 36.7 | | -- Others | 440,736 | 5.6 | 379,753 | 5.4 | | - Qipeilong | 729,581 | 9.3 | 673,184 | 9.4 | | Advertising, Franchise and Other Services | 514,536 | 6.5 | 482,881 | 6.8 | | - Franchise Services | 424,177 | 5.4 | 378,265 | 5.3 | | - Advertising Services | 63,211 | 0.8 | 48,045 | 0.7 | | - Others | 27,148 | 0.3 | 56,571 | 0.8 | | Total | 7,876,938 | 100.0 | 7,126,161 | 100.0 | - Automotive products and services revenue increased by 10.8%, primarily due to the expansion of the Tuhu workshop store network and a growing customer base, though average transaction value decreased as customers favored value-for-money products[59] - Advertising, franchise, and other services revenue increased by 6.6%, mainly driven by the expansion of the franchised Tuhu workshop store network and enhanced brand influence, which boosted advertising service revenue[60] Cost of Sales In the first half of 2025, cost of sales increased by 11.6% to RMB 5.9 billion, primarily due to a 12.0% increase in automotive products and services costs and a 14.7% increase in self-operated Tuhu workshop store and other sales costs, aligning with revenue growth and business expansion - Cost of sales for the six months ended June 30, 2025, was RMB 5.9 billion, an 11.6% increase from the same period in 2024[63] 2025 H1 Cost of Sales Breakdown (RMB thousands) | Cost Category | 2025 (RMB thousands) | Share (%) | 2024 (RMB thousands) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Automotive Products and Services Cost | 5,681,323 | 72.1 | 5,070,842 | 71.1 | | - Individual End Customers | 5,108,569 | 64.8 | 4,517,023 | 63.3 | | -- Tires and Chassis Parts | 2,764,735 | 35.1 | 2,451,589 | 34.4 | | -- Car Maintenance | 1,997,853 | 25.3 | 1,756,918 | 24.7 | | -- Others | 345,981 | 4.4 | 308,516 | 4.2 | | - Qipeilong | 572,754 | 7.3 | 553,819 | 7.8 | | Advertising, Franchise and Other Services Cost | 51,501 | 0.6 | 68,294 | 1.0 | | Self-operated Tuhu Workshop Store and Other Costs | 161,983 | 2.1 | 141,260 | 2.0 | | Total | 5,894,807 | 74.8 | 5,280,396 | 74.1 | - The increase in cost of sales was primarily due to a 12.0% increase in automotive products and services costs and a 14.7% increase in self-operated Tuhu workshop store and other sales costs, consistent with business growth and network expansion[66] Gross Profit and Gross Margin In the first half of 2025, gross profit increased to RMB 2 billion, but gross margin slightly decreased from 25.9% to 25.2%, mainly due to lower gross margins in automotive products and services (especially tires and chassis parts and car maintenance) as consumers favored value-for-money products, partially offset by improved gross margins in car wash and detailing services and Qipeilong's automotive parts sales - In the first half of 2025, gross profit was RMB 2 billion, with gross margin slightly decreasing from 25.9% in the same period of 2024 to 25.2%[67] - The decline in gross margin was primarily attributed to lower gross margins in automotive products and services (especially tires and chassis parts and car maintenance) as consumers favored value-for-money products, and increased cost of sales for self-operated Tuhu workshop stores and other items[67] - The decrease in gross margin was partially offset by increased gross margin in car wash and detailing services and improved gross margin from Qipeilong's sales of automotive parts[67] Other Income and Gains, Net In the first half of 2025, other income and gains, net, significantly increased by 326.1% to RMB 89.7 million, primarily driven by higher government grants, partially offset by foreign exchange losses due to currency fluctuations - Other income and gains, net, amounted to RMB 89.7 million, an increase of 326.1% compared to RMB 21.0 million in the same period of 2024[68] - The increase was mainly due to higher government grants received in the first half of 2025, partially offset by foreign exchange losses[68] Operating and Support Expenses In the first half of 2025, operating and support expenses increased by 9.4% to RMB 309.7 million, mainly due to higher employee benefit expenses and share-based payments resulting from adjustments to remuneration schemes and share incentive grants - Operating and support expenses were RMB 309.7 million, an increase of 9.4% compared to the same period in 2024[69] - The increase was primarily due to higher employee benefit expenses and share-based payments, resulting from adjustments to remuneration schemes and the granting of share incentives[69] Research and Development Expenses In the first half of 2025, research and development expenses increased by 13.8% to RMB 343.6 million, mainly due to increased investment in R&D talent and higher cloud service procurement to support business expansion and AI technology deployment - Research and development expenses were RMB 343.6 million, an increase of 13.8% compared to the same period in 2024[70] - The increase was primarily due to greater investment in R&D talent and increased cloud service procurement to support business scale expansion and artificial intelligence technology deployment[70] Selling and Marketing Expenses In the first half of 2025, selling and marketing expenses increased by 12.5% to RMB 1.022 billion, mainly due to higher advertising and promotion-related expenses (especially for online traffic acquisition and Tuhu workshop store promotional activities) and increased logistics fulfillment costs driven by higher order volumes - Selling and marketing expenses were RMB 1.022 billion, an increase of 12.5% compared to the same period in 2024[73] - The increase was primarily due to higher advertising and promotion-related expenses (especially for online traffic acquisition and Tuhu workshop store promotional activities) and increased logistics fulfillment costs driven by higher order volumes[73] General and Administrative Expenses In the first half of 2025, general and administrative expenses slightly increased to RMB 194.2 million, mainly due to higher transaction fees resulting from an overall increase in transaction volume - General and administrative expenses were RMB 194.2 million, a slight increase compared to the same period in 2024[74] - The increase was primarily due to higher transaction fees resulting from an overall increase in transaction volume[74] Finance Income In the first half of 2025, finance income remained relatively stable at RMB 87.1 million - Finance income remained relatively stable, amounting to RMB 87.1 million in the first half of 2025[75] Income Tax Expense In the first half of 2025, income tax expense was RMB 5.1 million, an increase of 6.4% compared to the same period in 2024, primarily due to higher taxable income - Income tax expense was RMB 5.1 million, an increase of 6.4% compared to the same period in 2024[76] - The increase was primarily due to higher taxable income generated in the first half of 2025[76] Profit for the Period In the first half of 2025, profit for the period was RMB 306.5 million, an increase of 7.8% compared to the same period in 2024 - Profit for the period in the first half of 2025 was RMB 306.5 million, an increase of 7.8% compared to the same period in 2024[77] Non-IFRS Measures The company uses adjusted EBITDA and adjusted net profit as non-IFRS measures to better assess operating performance, with adjusted EBITDA reaching RMB 483 million (up 7.5%) and adjusted net profit reaching RMB 410 million (up 14.6%) in the first half of 2025 - Adjusted EBITDA and adjusted net profit are used as non-IFRS measures to evaluate operating performance by excluding the impact of income tax expense, finance income, finance costs, depreciation and amortization, and share-based payment expenses[78][82] 2025 H1 Non-IFRS Measures (RMB thousands) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit for the Period | 306,535 | 284,332 | | Adjusted EBITDA | 483,349 | 449,619 | | Adjusted Net Profit | 410,460 | 358,164 | Selected Consolidated Statement of Financial Position Data As of June 30, 2025, the company's total assets were RMB 12.612 billion, total liabilities were RMB 7.584 billion, and net assets were RMB 5.028 billion, with net current assets increasing to RMB 1.318 billion June 30, 2025 Selected Consolidated Statement of Financial Position Data (RMB thousands) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total Non-current Assets | 4,376,303 | 4,431,963 | | Total Current Assets | 8,235,483 | 8,365,276 | | Total Current Liabilities | 6,917,819 | 7,198,929 | | Total Non-current Liabilities | 666,414 | 738,932 | | Net Assets | 5,027,553 | 4,859,378 | | Net Current Assets | 1,317,664 | 1,166,347 | Trade Receivables As of June 30, 2025, trade receivables amounted to RMB 203.9 million, a 9.8% decrease from December 31, 2024, primarily due to enhanced monitoring and management of receivables collection, which effectively accelerated recovery - As of June 30, 2025, trade receivables were RMB 203.9 million, a 9.8% decrease from December 31, 2024[89] - The decrease was primarily attributed to enhanced monitoring and management measures for receivables follow-up, effectively accelerating the collection of trade receivables[89] Wealth Management Investments As of June 30, 2025, total wealth management investments were RMB 4.7 billion, a 4.7% decrease from December 31, 2024, mainly due to the redemption of some wealth management products upon maturity during the reporting period - As of June 30, 2025, total wealth management investments were RMB 4.7 billion, a 4.7% decrease from December 31, 2024[94] - The decrease was primarily due to the redemption of some wealth management products upon maturity during the reporting period[94] Restricted Cash As of June 30, 2025, total restricted cash was RMB 1.231 billion, primarily comprising margin deposits held in designated bank accounts for the issuance of bills payable and letters of guarantee - As of June 30, 2025, total restricted cash was RMB 1.231 billion, a slight increase from December 31, 2024[97] - It primarily comprises margin deposits held in designated bank accounts for the issuance of bills payable and letters of guarantee[95] Cash and Cash Equivalents As of June 30, 2025, cash and cash equivalents amounted to RMB 1.511 billion, an increase from December 31, 2024, primarily including cash at bank and in hand, and time deposits with original maturities within three months - As of June 30, 2025, cash and cash equivalents were RMB 1.511 billion, an increase from December 31, 2024[100] - This primarily includes cash at bank and in hand (RMB 1.356 billion) and time deposits with original maturities within three months (RMB 155 million)[100] Trade Payables and Bills Payable As of June 30, 2025, total trade payables and bills payable were RMB 4.3 billion, a 4.1% decrease from December 31, 2024, mainly due to the settlement of outstanding balances with certain suppliers in the first half of the year - As of June 30, 2025, total trade payables and bills payable were RMB 4.3 billion, a 4.1% decrease from December 31, 2024[103] - The decrease was primarily attributed to the settlement of outstanding balances with certain suppliers in the first half of 2025[103] Financial Ratios In the first half of 2025, the company's debt-to-asset ratio decreased to 60.1%, total revenue growth rate was 10.5%, and gross margin was 25.2%, with adjusted EBITDA margin and adjusted net profit margin at 6.1% and 5.2% respectively 2025 H1 Key Financial Ratios | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Debt-to-Asset Ratio | 60.1% | 62.0% | | Total Revenue Growth Rate | 10.5% | 9.3% | | Gross Margin | 25.2% | 25.9% | | Adjusted EBITDA Margin | 6.1% | 6.3% | | Adjusted Net Profit Margin | 5.2% | 5.0% | Liquidity and Capital Resources As of June 30, 2025, the company's cash position, including cash and cash equivalents, wealth management investments, and restricted cash, remained stable at RMB 7.5 billion, with cash needs funded by operating cash flows and net proceeds from global offerings, maintaining a healthy liquidity profile - As of June 30, 2025, the company's cash position (including cash and cash equivalents, wealth management investments, and restricted cash) remained stable at RMB 7.5 billion[106] - The company primarily funds its cash needs through cash generated from business operations and net proceeds from the global offering, maintaining a prudent funding policy and a healthy liquidity position[106][107] Selected Consolidated Statement of Cash Flows Data In the first half of 2025, net cash flows from operating activities were RMB 258 million, net cash flows from investing activities were RMB 305 million, and net cash flows used in financing activities were RMB 422 million, with cash and cash equivalents at period-end totaling RMB 1.511 billion 2025 H1 Selected Consolidated Statement of Cash Flows Data (RMB thousands) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Cash Flows from Operating Activities | 257,729 | 718,700 | | Net Cash Flows from Investing Activities | 304,691 | (1,981,416) | | Net Cash Flows Used in Financing Activities | (422,456) | (105,540) | | Net Increase/(Decrease) in Cash and Cash Equivalents | 139,964 | (1,368,256) | | Cash and Cash Equivalents at End of Period | 1,511,139 | 1,355,581 | Net Cash Flows from Operating Activities In the first half of 2025, net cash flows from operating activities amounted to RMB 258 million, influenced by profit before tax, adjustments for non-cash and non-operating items (such as share-based payments and depreciation), and changes in working capital (including a decrease in trade payables and contract liabilities) - Net cash flows from operating activities for the first half of 2025 were RMB 258 million[110] - Primarily influenced by profit before tax, adjustments for non-cash items like share-based payment expenses and depreciation, and working capital changes such as decreases in trade payables and bills payable, and contract liabilities[110] Net Cash Flows from Investing Activities In the first half of 2025, net cash flows from investing activities were RMB 305 million, primarily due to proceeds from wealth management investments and interest received, partially offset by purchases of wealth management investments and property, plant, and equipment - Net cash flows from investing activities for the first half of 2025 were RMB 305 million[113] - Primarily due to proceeds from wealth management investments of RMB 6.1 billion and interest received of RMB 79.8 million, partially offset by purchases of wealth management investments of RMB 5.8 billion and purchases of property, plant, and equipment of RMB 133.0 million[113] Net Cash Flows Used in Financing Activities In the first half of 2025, net cash flows used in financing activities amounted to RMB 422 million, mainly due to the repurchase of ordinary shares totaling RMB 347 million and the principal portion of lease payments of RMB 64.1 million - Net cash flows used in financing activities for the first half of 2025 were RMB 422 million[114] - Primarily due to the repurchase of ordinary shares totaling RMB 347 million and the principal portion of lease payments of RMB 64.1 million[114] Borrowings As of June 30, 2025, the company's bank borrowings totaled RMB 2.0 million, all bearing floating interest rates with an average annual rate of 2.7% - As of June 30, 2025, the company's bank borrowings totaled RMB 2.0 million[115] - All borrowings bear floating interest rates, with an average annual interest rate of 2.7%[115] Contingent Liabilities and Guarantees As of June 30, 2025, the company had no material contingent liabilities or guarantees - As of June 30, 2025, the Group had no material contingent liabilities or guarantees[116] Capital Expenditures In the first half of 2025, capital expenditures amounted to RMB 135.9 million, a 27.2% decrease from the same period in 2024, with the company planning to fund future capital expenditures through internal resources - Capital expenditures for the first half of 2025 were RMB 135.9 million, a 27.2% decrease compared to the same period in 2024[117] - The company plans to fund future capital expenditures through internal resources, including cash and cash equivalents and net proceeds from the global offering[117] Capital Commitments As of June 30, 2025, the company's capital commitments were RMB 43.6 million, a 35.8% decrease from December 31, 2024, primarily related to the construction of new automated warehouses - As of June 30, 2025, the company's capital commitments were RMB 43.6 million, a 35.8% decrease from December 31, 2024[118] - Capital commitments are primarily related to the construction of new automated warehouses and are planned to be paid within one to two years[118] Pledge of Assets As of June 30, 2025, the Group had no pledge of assets - As of June 30, 2025, the Group had no pledge of assets[119] Future Material Investment Plans and Capital Assets As of the date of this interim report, the Group has no definite plans for material investments and capital assets to disclose, other than those outlined in the prospectus under "Future Plans and Use of Proceeds" - As of the date of this interim report, other than those disclosed in the prospectus under "Future Plans and Use of Proceeds," the Group has no definite plans for material investments and capital assets to disclose[120] Foreign Exchange Risk and Hedging The company primarily operates in China with most transactions in RMB, and foreign currency risk mainly arises from USD-denominated bank balances; currently, there is no foreign currency hedging policy, but the company monitors exposure and considers hedging when necessary - The company primarily operates in China, with almost all operating transactions conducted in RMB, and foreign currency risk mainly arises from USD-denominated bank balances[121] - The company currently has no foreign currency hedging policy but closely monitors foreign exchange risk exposure and considers hedging when necessary[121] Material Acquisitions, Significant Investments and Disposals For the six months ended June 30, 2025, the company did not undertake any material acquisitions, significant investments, or disposals of subsidiaries, associates, and joint ventures requiring disclosure under the Listing Rules - For the six months ended June 30, 2025, the company did not undertake any material acquisitions, significant investments, or disposals requiring disclosure under the Listing Rules[122] No Material Changes Except as disclosed in this interim report, no material changes affecting the Group's performance occurred during the reporting period that require disclosure under paragraphs 40(2) and 46 of Appendix D2 to the Listing Rules - Except as disclosed in this interim report, no material changes affecting the Group's performance occurred during the reporting period that require disclosure under the Listing Rules[123] Employees and Remuneration As of June 30, 2025, the company had 4,461 employees, with total remuneration costs of RMB 924 million, and determines compensation based on qualifications, experience, position, and performance, while providing regular professional training - As of June 30, 2025, the company had 4,461 employees (compared to 4,506 in the same period of 2024)[124] - Total remuneration costs for the first half of 2025 were RMB 924 million (compared to RMB 807 million in the same period of 2024)[124] - The company determines remuneration based on employee qualifications, industry experience, job level, and performance, and provides regular professional training[124] Other Information Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures As of June 30, 2025, the company's directors and chief executive held interests in the company's shares, with Mr. Chen Min controlling approximately 48.27% of the total voting rights through beneficial ownership and controlled corporations, and Mr. Hu Xiaodong also holding Class A shares Directors' and Chief Executive's Interests in Shares (as of June 30, 2025) | Director Name | Nature of Interest | Share Class | Number of Shares | Percentage of Interest in Each Class of Shares | | :--- | :--- | :--- | :--- | :--- | | Mr. Chen Min | Beneficial Owner | Class A Shares | 850,000 (L) | 0.1% | | | Interest in Controlled Corporation | Class A Shares | 13,518,284 (L) | 1.8% | | | Interest in Controlled Corporation | Class A Shares | 5,000,000 (S) | 0.7% | | | Interest in Controlled Corporation | Class B Shares | 67,918,860 (L) | 100.0% | | Mr. Hu Xiaodong | Beneficial Owner | Class A Shares | 300,000 (L) | 0.0(*)% | | | Interest in Controlled Corporation | Class A Shares | 25,223,685 (L) | 3.4% | | | Interest in Controlled Corporation | Class A Shares | 2,996,703 (S) | 0.4% | - Mr. Chen Min exercises voting control over the company through the dual-class share structure, where his Class B shares grant ten votes per share[127][130] Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares As of June 30, 2025, key shareholders, excluding directors, include Tencent, Image Architecture Investment (Hong Kong) Limited, Pandanus Associates Inc., Joy Capital GP, Ltd, Ubiquity Holdings Ltd., and Ju Xi Limited, holding significant interests in the company's Class A shares, with Tencent holding 21.1% through its controlled entities Substantial Shareholders' Interests in Shares (as of June 30, 2025) | Shareholder Name | Nature of Interest | Share Class | Number of Shares | Percentage of Interest in Each Class of Shares | | :--- | :--- | :--- | :--- | :--- | | Tencent | Interest in Controlled Corporation | Class A Shares | 158,895,235 (L) | 21.1% | | Image Architecture Investment (Hong Kong) Limited | Beneficial Owner | Class A Shares | 151,792,350 (L) | 20.2% | | Pandanus Associates Inc. | Beneficial Owner | Class A Shares | 44,058,965 (L) | 5.9% | | Joy Capital GP, Ltd | Interest in Controlled Corporation | Class A Shares | 44,007,640 (L) | 5.8% | | Ubiquity Holdings Ltd. | Interest in Controlled Corporation | Class A Shares | 42,707,045 (L) | 5.7% | | Ju Xi Limited | Beneficial Owner | Class A Shares | 39,167,585 (L) | 5.2% | | | Interest in Controlled Corporation | Class A Shares | 453,132 (L) | 0.1% | - Tencent, through its controlled entities, holds 21.1% of the company's Class A shares, making it one of the company's significant shareholders[132][137] Share Incentive Schemes The company has adopted three share incentive schemes—the 2019 Share Incentive Scheme, the Post-IPO Share Scheme, and the Second Post-IPO Share Scheme (Existing Shares)—to incentivize directors, employees, and consultants through the grant of share options and restricted share units - The company has adopted three share incentive schemes: the 2019 Share Incentive Scheme, the Post-IPO Share Scheme, and the Second Post-IPO Share Scheme (Existing Shares)[139] 2019 Share Incentive Scheme The 2019 Share Incentive Scheme was adopted on October 31, 2019, under which Mr. Chen Min and other employees/consultants exercised share options for 637,500 and 1,328,468 Class A shares respectively during the reporting period, with 27,138,884 Class A share options remaining unexercised as of June 30, 2025 2019 Share Incentive Scheme Share Option Movements (as of June 30, 2025) | Grantee Category | Unexercised as of Jan 1, 2025 (shares) | Exercised During Period (shares) | Unexercised as of June 30, 2025 (shares) | | :--- | :--- | :--- | :--- | | Directors (Mr. Chen Min) | 850,000 | 637,500 | 212,500 | | Other Grantees (Employees and Consultants) | 28,270,500 | 1,328,468 | 26,626,384 | | Total | 29,420,500 | 1,965,968 | 27,138,884 | Post-IPO Share Scheme The Post-IPO Share Scheme, adopted on September 7, 2023, had 40,197,516 restricted shares/units and 8,143,714 share options available for grant as of June 30, 2025, with 30,268 restricted share units vested and 214,487 forfeited during the reporting period - As of June 30, 2025, the total number of restricted shares, restricted share units, and share options available for grant under the Post-IPO Scheme was 40,197,516 shares and 8,143,714 shares respectively[144] Post-IPO Share Scheme Restricted Share Unit Movements (as of June 30, 2025) | Grantee Category | Unvested as of Jan 1, 2025 (shares) | Vested During Period (shares) | Forfeited During Period (shares) | Unvested as of June 30, 2025 (shares) | | :--- | :--- | :--- | :--- | :--- | | Employees | 2,799,145 | 30,268 | 214,487 | 2,554,390 | Post-IPO Share Scheme Share Option Movements (as of June 30, 2025) | Grantee Category | Unexercised as of Jan 1, 2025 (shares) | Forfeited During Period (shares) | Unexercised as of June 30, 2025 (shares) | | :--- | :--- | :--- | :--- | | Employees | 1,018,094 | 49,582 | 968,512 | Second Post-IPO Share Scheme (Existing Shares) The Second Post-IPO Share Scheme (Existing Shares), announced on June 25, 2024, allows for the grant of 33,000,000 Class A shares, with 132,220 new share options and 6,615,522 restricted share units granted during the reporting period, of which 547,091 vested and 426,694 forfeited - The Second Post-IPO Scheme allows for the grant of a total of 33,000,000 Class A shares, comprising only existing Class A shares[148] Second Post-IPO Share Scheme Share Option Movements (as of June 30, 2025) | Grantee Category | Unexercised as of Jan 1, 2025 (shares) | Granted During Period (shares) | Unexercised as of June 30, 2025 (shares) | | :--- | :--- | :--- | :--- | | Employees | 60,000 | 132,220 | 192,220 | Second Post-IPO Share Scheme Restricted Share Unit Movements (as of June 30, 2025) | Grantee Category | Unvested as of Jan 1, 2025 (shares) | Granted During Period (shares) | Vested During Period (shares) | Forfeited During Period (shares) | Unvested as of June 30, 2025 (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Employees | 12,411,101 | 6,615,522 | 547,091 | 426,694 | 18,052,838 | Changes in Directors' Information Mr. Feng Wei resigned as an independent non-executive director and from related committee positions on June 29, 2025, with Ms. Zhou Lingfei appointed on the same day to fill the vacancy, serving as an independent non-executive director and chair of the Corporate Governance Committee - Mr. Feng Wei resigned as an independent non-executive director, Chairman of the Corporate Governance Committee, and a member of the Review Committee and Nomination Committee on June 29, 2025[155] - Ms. Zhou Lingfei was appointed on the same day as an independent non-executive director, Chairman of the Corporate Governance Committee, and a member of the Review Committee and Nomination Committee[155] Interim Dividend The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025[156] Use of Net Proceeds The net proceeds from the global offering were approximately HKD 1.2733 billion, of which HKD 179.4 million had been utilized as of June 30, 2025, primarily for R&D, supply chain enhancement, and new energy vehicle service investments, with the remaining HKD 275.8 million expected to be utilized by December 31, 2025 - The net proceeds from the global offering were approximately HKD 1.2733 billion[157] Use of Net Proceeds from Global Offering (as of June 30, 2025) | Description | Percentage of Net Proceeds | Allocated Net Proceeds (HKD millions) | Amount Utilized as of June 30, 2025 (HKD millions) | Unutilized Amount as of June 30, 2025 (HKD millions) | Expected Timeline for Utilization of Unutilized Net Proceeds | | :--- | :--- | :--- | :--- | :--- | :--- | | Enhancing supply chain capabilities | 35.0% | 445.6 | 38.4 | 37.1 | December 31, 2025 | | R&D to enhance data analytics technology and improve operational efficiency | 20.0% | 254.7 | 101.1 | 45.8 | December 31, 2025 | | Expanding store network and franchisee base | 15.0% | 191.0 | 6.2 | – | – | | Investments in new energy vehicle services and tools/equipment | 20.0% | 254.7 | 10.5 | 154.5 | December 31, 2025 | | Working capital and general corporate purposes | 10.0% | 127.3 | 23.2 | 38.4 | December 31, 2025 | | Total | 100.0% | 1,273.3 | 179.4 | 275.8 | | Compliance with Corporate Governance Code The company is committed to maintaining stringent corporate governance standards and has adopted the Corporate Governance Code, complying with all applicable code provisions during the reporting period, except for the combined roles of Chairman and CEO, which the Board believes ensures consistent leadership and efficient strategic planning - The company has adopted the Corporate Governance Code and regularly reviews its compliance since the listing date[160] - The roles of Chairman of the Board and Chief Executive Officer are combined and held by Mr. Chen Min, which deviates from code provision C.2.1, but the Board believes this arrangement ensures consistent leadership and efficient strategic planning[160] Compliance with Model Code The company has adopted the Model Code and confirmed that all directors complied with its required standards during the reporting period, with no instances of non-compliance found among senior management and employees - The company has adopted the Model Code and confirmed that all directors complied with it during the reporting period[161] - No instances of non-compliance with the Model Code were found among senior management and employees[161] Purchase, Sale, Redemption or Issue of Listed Securities Between January 1, 2025, and August 20, 2025, the company's trustee purchased 19,400,100 Class A shares under the Second Post-IPO Scheme, with no other purchases, sales, redemptions, or issues of listed securities by the company or its subsidiaries during the reporting period - Between January 1, 2025, and August 20, 2025, the trustee appointed by the company purchased 19,400,100 Class A shares under the Second Post-IPO Scheme[162] - Other than the above disclosure, neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities, nor issued equity securities or sold treasury shares during the reporting period[162] Corporate Governance Committee The company has established a Corporate Governance Committee, composed of three independent non-executive directors, responsible for ensuring operations align with shareholder interests, complying with Listing Rules, and maintaining the dual-class share structure, while reviewing and monitoring director training, conflict of interest management, and compliance advisor remuneration - The company has established a Corporate Governance Committee, comprising three independent non-executive directors, responsible for ensuring the company's operations and management align with the interests of all shareholders, comply with the Listing Rules, and maintain the dual-class share structure[165] - The committee reviewed and monitored matters such as director and senior management training, confirmation of Differentiated Voting Rights Beneficiaries, conflict of interest management, risks associated with the dual-class share structure, and remuneration of compliance advisors[166] Independent Review Report Scope of Review Ernst & Young, the auditor, conducted a review of the interim financial information in accordance with Hong Kong Standard on Review Engagements 2410, primarily involving inquiries with financial and accounting personnel and applying analytical and other review procedures, with a scope less than an audit - Ernst & Young, the auditor, conducted a review of the interim financial information in accordance with Hong Kong Standard on Review Engagements 2410[174] - The scope of review primarily included inquiries with personnel responsible for financial and accounting matters, and applying analytical and other review procedures, but was less extensive than an audit, thus no audit opinion is expressed[174] Conclusion Based on the review, the auditor found no matters that would lead them to believe the interim financial information was not prepared in all material respects in accordance with International Accounting Standard 34 - The auditor found no matters that would lead them to believe the interim financial information was not prepared in all material respects in accordance with International Accounting Standard 34[175] Interim Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, the company reported revenue of RMB 7.877 billion, gross profit of RMB 1.982 billion, and profit for the period of RMB 307 million, with basic and diluted earnings per share both at RMB 0.4 Interim Condensed Consolidated Statement of Profit or Loss Summary (RMB thousands) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 7,876,938 | 7,126,161 | | Cost of Sales | (5,894,807) | (5,280,396) | | Gross Profit | 1,982,131 | 1,845,765 | | Operating Profit | 221,929 | 211,884 | | Profit for the Period | 306,535 | 284,332 | | Basic Earnings Per Share Attributable to Owners of the Parent (RMB) | 0.4 | 0.4 | | Diluted Earnings Per Share Attributable to Owners of the Parent (RMB) | 0.4 | 0.3 | Interim Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, profit for the period was RMB 307 million, with other comprehensive income, net, of RMB 90.07 million, resulting in a total comprehensive income for the period of RMB 397 million Interim Condensed Consolidated Statement of Comprehensive Income Summary (RMB thousands) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit for the Period | 306,535 | 284,332 | | Other Comprehensive Income/(Loss) | 90,066 | (14,910) | | Total Comprehensive Income for the Period | 396,601 | 269,422 | Interim Condensed Consolidated Statement of Financial Position As of June 30, 2025, the company's total assets were RMB 12.612 billion, including RMB 8.235 billion in current assets, total liabilities were RMB 7.584 billion, including RMB 6.918 billion in current liabilities, and net assets amounted to RMB 5.028 billion Interim Condensed Consolidated Statement of Financial Position Summary (RMB thousands) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total Non-current Assets | 4,376,303 | 4,431,963 | | Total Current Assets | 8,235,483 | 8,365,276 | | Total Current Liabilities | 6,917,819 | 7,198,929 | | Total Non-current Liabilities | 666,414 | 738,932 | | Net Assets | 5,027,553 | 4,859,378 | Interim Condensed Consolidated Statement of Changes in Equity As of June 30, 2025, total equity attributable to owners of the parent was RMB 5.030 billion, with total comprehensive income for the period at RMB 397 million, and key changes including share-based payments, share repurchases, and exercise of share-based payments - As of June 30, 2025, total equity attributable to owners of the parent was RMB 5.030 billion[184] - Total comprehensive income for the period was RMB 397 million[184] - Key changes in equity included share-based payments (RMB 104 million), share repurchases (RMB 332 million), and the exercise of share-based payments[184] Interim Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2025, net cash flows from operating activities were RMB 258 million, net cash flows from investing activities were RMB 305 million, and net cash flows used in financing activities were RMB 422 million, with cash and cash equivalents at period-end totaling RMB 1.511 billion Interim Condensed Consolidated Statement of Cash Flows Summary (RMB thousands) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Cash Flows from Operating Activities | 257,729 | 718,700 | | Net Cash Flows from Investing Activities | 304,691 | (1,981,416) | | Net Cash Flows Used in Financing Activities | (422,456) | (105,540) | | Net Increase/(Decrease) in Cash and Cash Equivalents | 139,964 | (1,368,256) | | Cash and Cash Equivalents at End of Period | 1,511,139 | 1,355,581 | Notes to the Interim Condensed Consolidated Financial Information Company Information Tuhu Car Inc. was incorporated in the Cayman Islands on July 8, 2019, operating as an investment holding company that primarily provides automotive products and services in China through its online platforms - Tuhu Car Inc. was incorporated in the Cayman Islands on July 8, 2019, primarily providing automotive products and services to consumers in China through its online interfaces, including its application, website, and WeChat mini-program[192] Basis of Preparation The interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 Interim Financial Reporting and should be read in conjunction with the annual consolidated financial statements as of December 31, 2024 - The interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 Interim Financial Reporting[193] Changes in Accounting Policies The accounting policies used for the interim condensed consolidated financial information are consistent with the 2024 annual consolidated financial statements, with the initial adoption of amended IAS 21 "Lack of Exchangeability" having no material impact as the Group's transaction currencies are convertible - The amended International Accounting Standard 21 "Lack of Exchangeability" was adopted for the first time, with no impact on the interim condensed consolidated financial information[194][195] Operating Segment Information No operating segment or further geographical segment information is presented as the Group's revenue, reported results, and total assets are derived from a single operating segment in China, with no single customer accounting for over 10% of total revenue - The Group's revenue, reported results, and total assets are all derived from a single operating segment (China), thus no operating segment and further geographical segment information is presented[197][198] - No single customer accounted for more than 10% of the Group's total revenue during the period[199] Revenue In the first half of 2025, revenue from customer contracts totaled RMB 7.877 billion, comprising RMB 7.362 billion from automotive products and services and RMB 515 million from advertising, franchise, and other services, with most revenue from automotive products and services recognized at a point in time, while other services are recognized over time 2025 H1 Revenue Analysis (RMB thousands) | Revenue Category | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Automotive Products and Services | 7,362,402 | 6,643,280 | | Advertising, Franchise and Other Services | 514,536 | 482,881 | | Total | 7,876,938 | 7,126,161 | - Revenue from automotive products and services is recognized at a point in time, while revenue from advertising, franchise, and some other services is recognized over time[201] - Total recognized revenue included in contract liabilities at the beginning of the reporting period was RMB 661 million[202] Finance Income / (Finance Costs) In the first half of 2025, finance income was RMB 87.10 million, primarily from interest income, while finance costs were RMB 6.20 million, mainly comprising interest on lease liabilities 2025 H1 Finance Income/(Finance Costs) (RMB thousands) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Finance Income (Interest Income) | 87,099 | 90,443 | | Finance Costs (Interest on Bank Loans and Lease Liabilities) | (6,204) | (8,635) | Profit Before Tax The Group's profit before tax is derived after deducting various expenses, including cost of sales, depreciation and amortization, employee benefit expenses (including share-based payments), advertising and promotion expenses, and transportation expenses - Profit before tax is derived after deducting various expenses, including cost of sales (RMB 5.742 billion), depreciation of property, plant and equipment (RMB 83.32 million), depreciation of right-of-use assets (RMB 62.86 million), and employee benefit expenses (RMB 924 million, including share-based payments of RMB 104 million)[205] Income Tax Expense The Group's income tax expense for the first half of 2025 was RMB 5.08 million, primarily calculated based on applicable corporate income