容大科技(09881) - 2025 - 中期财报

Definitions This section provides definitions of key terms and abbreviations used in the report to ensure a clear understanding of its content Company Information This section outlines basic information about Rongta Technology (Xiamen) Group Co., Ltd., including company name, board and supervisory committee members, committee compositions, registered and principal places of business, listing information, legal advisors, and auditors - The company's Chinese name is 容大合眾（廈門）科技集團股份公司, and its English name is Rongta Technology (Xiamen) Group Co., Ltd.[9] - The Board of Directors comprises Mr. Xu Kaiming (Chairman), Mr. Xu Kaihe, Ms. Lin Yanqin (Executive Directors), and Dr. Lin Junhua, Dr. Yu Xiaoou, Dr. Huang Liqin (Independent Non-executive Directors)[10] - The company's H-shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited, stock code 9881[10] Management Discussion and Analysis This section details the Group's business performance, financial position, future strategic outlook, and key risk factors, highlighting a 10.4% revenue decrease and a shift to loss, driven by external factors, product performance, and increased listing expenses, as the Group implements strategic initiatives like capacity expansion and R&D Business Review The Group's revenue decreased by 10.4% to RMB 145.6 million due to external factors and product line performance, while the gross profit margin remained stable at 27.2% through cost control and R&D investment Business Performance Overview | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 145.6 | 162.5 | -10.4% | | Gross Profit Margin | 27.2% | 27.0% | +0.2pp | - The decrease in revenue was primarily impacted by external factors such as tighter import policies in Africa, geopolitical influences in Europe, and delayed client projects[14] - Sales of printing equipment (slowing demand for portable learning printers), weighing scales (declining traditional weighing scale sales), and POS terminals/PDAs (tighter import policies in Algeria) all decreased[14] Outlook The Group is expanding Malaysian production capacity for supply chain resilience, establishing a Wuhan R&D center for IoT and AI integration by 2026, deepening Southeast Asia and Middle East market cooperation, and promoting AI weighing scales and industrial printers globally, while financially controlling receivables, optimizing financing costs, and utilizing listing proceeds for strategic investments - Expanding Malaysian production scale to enhance international supply chain resilience; the Wuhan R&D center is expected to operate in 2026, strengthening IoT and AI technology integration[15] - Deepening cooperation in Southeast Asia and the Middle East, participating in international exhibitions to promote AI weighing scales and industrial-grade printing equipment, and increasing promotion of hazardous waste products domestically[15] - Iterating AI smart scales to integrate SaaS functions, developing modular POS terminals; strictly controlling accounts receivable, optimizing financing costs, and utilizing net proceeds of approximately HKD 131.2 million from the listing to support strategic investments[16] Financial Review This section reviews key financial indicators for the reporting period, including revenue, costs, profit, various expenses, and net profit, noting a 10.4% year-on-year revenue decrease and a shift from profit to loss, primarily due to delayed client project approvals, product specification improvements, increased listing expenses, and higher R&D investment Revenue During the reporting period, the Group's revenue was approximately RMB 145.6 million, a 10.4% decrease from approximately RMB 162.5 million in the same period of 2024, mainly due to slower approval progress for some client projects and further improvements requested by clients before product delivery Revenue Comparison | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 145.6 | 162.5 | -10.4% | - The decrease in revenue was primarily due to slower approval progress for some client projects and clients requesting further improvements to product specifications before delivery[18] Revenue by Product and Service Segment During the reporting period, revenue from all major product lines decreased, with printing equipment revenue down 8.3%, weighing scales down 11.4%, and POS terminals/PDAs down 23.2%, primarily due to delayed client projects, unsuccessful bids by downstream distributors, and tighter import policies in Algeria Revenue Breakdown by Product Segment (RMB thousand) | Product Segment | H1 2025 | H1 2024 | Year-on-year Change | | :--- | :--- | :--- | :--- | | Printing Equipment | 100,453 | 109,534 | -8.3% | | Weighing Scales | 24,034 | 27,133 | -11.4% | | POS Terminals and PDAs | 12,363 | 16,088 | -23.2% | | Accessories and Other Purchased Products | 7,877 | 8,716 | -9.7% | | Others | 890 | 1,020 | -12.7% | | Total | 145,617 | 162,491 | -10.4% | - Sales of printing equipment decreased mainly due to slower approval progress for some new client projects and product specification improvements[19] - Sales of POS terminals and PDAs decreased primarily due to tighter import policies in Algeria, with import licenses expected to be issued in H2 2025[19] Cost of Sales During the reporting period, cost of sales was approximately RMB 106.0 million, a 10.6% decrease from the same period in 2024, primarily due to the Group's effective cost control, leading to corresponding reductions in raw materials, manufacturing, and transportation costs Cost of Sales Breakdown (RMB thousand) | Cost of Sales Item | H1 2025 | H1 2024 | Year-on-year Change | | :--- | :--- | :--- | :--- | | Raw Material Costs | 84,875 | 100,974 | -15.9% | | Labor Costs | 13,686 | 13,028 | +5.1% | | Direct Production Expenses | 1,714 | 1,915 | -10.5% | | Depreciation and Amortization | 4,575 | 4,118 | +11.1% | | Impairment (Reversal) of Inventories | (429) | (2,660) | -83.9% | | Others | 1,614 | 1,245 | +29.6% | | Total | 106,035 | 118,620 | -10.6% | - The decrease in cost of sales was mainly attributable to the Group's effective cost control, resulting in corresponding reductions in material, manufacturing, and transportation costs[22] Gross Profit and Gross Profit Margin During the reporting period, gross profit was approximately RMB 39.6 million, a RMB 4.3 million year-on-year decrease, while the gross profit margin remained relatively stable at approximately 27.2%, an increase of 0.2 percentage points from the same period last year Gross Profit and Gross Profit Margin Comparison | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Gross Profit | 39.6 | 43.9 | -9.8% | | Gross Profit Margin | 27.2% | 27.0% | +0.2pp | Other Income During the reporting period, other income was approximately RMB 6.3 million, a 19.2% year-on-year decrease, primarily due to reduced government grants, including R&D-related subsidies and operating VAT refund subsidies Other Income Comparison (RMB million) | Metric | H1 2025 | H1 2024 | Year-on-year Change | | :--- | :--- | :--- | :--- | | Other Income | 6.3 | 7.8 | -19.2% | - The decrease in other income was mainly due to reduced government grants (R&D-related subsidies and operating VAT refund subsidies)[24] Net Other Gains During the reporting period, net other gains were approximately RMB 0.7 million, a significant 600.0% year-on-year increase, primarily due to no foreign exchange forward contract losses in H1 2025 and increased net gains from disposal of property, plant, and equipment Net Other Gains Comparison (RMB million) | Metric | H1 2025 | H1 2024 | Year-on-year Change | | :--- | :--- | :--- | :--- | | Net Other Gains | 0.7 | 0.1 | +600.0% | - The increase in gains was mainly due to no foreign exchange forward contracts in H1 2025 and increased net gains from the disposal of property, plant, and equipment[26] Selling and Marketing Expenses During the reporting period, selling and marketing expenses were approximately RMB 13.6 million, a 7.1% year-on-year increase, primarily due to higher labor costs for sales personnel, increased advertising and other marketing expenses (due to more exhibitions), and higher service fees from increased e-commerce platform promotion Selling and Marketing Expenses Comparison (RMB million) | Metric | H1 2025 | H1 2024 | Year-on-year Change | | :--- | :--- | :--- | :--- | | Selling and Marketing Expenses | 13.6 | 12.7 | +7.1% | - Selling and marketing expenses increased mainly due to higher labor costs for sales personnel, increased advertising and other marketing expenses (more exhibitions), and higher e-commerce platform service fees[27] General and Administrative Expenses During the reporting period, general and administrative expenses were approximately RMB 31.4 million, a significant 80.5% year-on-year increase, primarily due to non-recurring listing expenses incurred from the company's shares being listed on the Stock Exchange in June 2025 General and Administrative Expenses Comparison (RMB million) | Metric | H1 2025 | H1 2024 | Year-on-year Change | | :--- | :--- | :--- | :--- | | General and Administrative Expenses | 31.4 | 17.4 | +80.5% | - The significant increase in expenses was primarily due to non-recurring listing expenses incurred from the company's shares being listed on the Stock Exchange in June 2025[28] Research and Development Expenses During the reporting period, R&D expenses were approximately RMB 9.3 million, a 52.5% year-on-year increase, primarily due to an increase in R&D personnel and benefits, as well as a decrease in capitalized R&D projects R&D Expenses Comparison (RMB million) | Metric | H1 2025 | H1 2024 | Year-on-year Change | | :--- | :--- | :--- | :--- | | R&D Expenses | 9.3 | 6.1 | +52.5% | - The increase in R&D expenses was mainly due to an increase in R&D personnel and benefits, as well as a decrease in capitalized R&D projects[29] Impairment Losses on Financial Assets (Provision)/Reversal During the reporting period, an impairment loss provision of RMB 79 thousand on financial assets was recorded, compared to a reversal of RMB 122 thousand in the same period of 2024, primarily due to delayed settlement by certain clients during the reporting period Impairment Losses on Financial Assets Comparison (RMB thousand) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Impairment Losses (Provision)/Reversal on Financial Assets | (79) | 122 | - The impairment loss shifted from a reversal to a provision, primarily due to delayed settlement by certain clients during the reporting period[30] Finance Income and Costs During the reporting period, net finance costs were approximately RMB 1.0 million, a 42.9% year-on-year increase, primarily due to a decrease in interest income from bank deposits, whereas the same period in 2024 had more interest income from USD deposits Net Finance Income and Costs Comparison (RMB million) | Metric | H1 2025 | H1 2024 | Year-on-year Change | | :--- | :--- | :--- | :--- | | Net Finance Costs | (1.0) | (0.7) | +42.9% | - The increase in net finance costs was mainly due to a decrease in interest income from bank deposits, whereas the same period in 2024 had more interest income from USD deposits[31] Income Tax (Credit)/Expense During the reporting period, an income tax credit of approximately RMB 2.4 million was recorded, compared to an income tax expense of approximately RMB 0.6 million in the same period of 2024, primarily due to the recognition of deferred tax assets as the Group incurred a loss during the period Income Tax (Credit)/Expense Comparison (RMB million) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Income Tax (Credit)/Expense | 2.4 (Credit) | (0.6) (Expense) | - Income tax shifted from an expense to a credit, primarily due to the Group's loss during the reporting period and the recognition of deferred tax assets[32] Net Profit and Net Profit Margin During the reporting period, net profit shifted from a profit of RMB 14.4 million in the same period of 2024 to a loss of RMB 6.4 million, with the net profit margin decreasing from 8.9% to -4.4%, primarily due to increased listing expenses, decreased revenue, and higher R&D expenses Net Profit and Net Profit Margin Comparison (RMB million) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Profit | (6.4) (Loss) | 14.4 (Profit) | | Net Profit Margin | -4.4% | 8.9% | - Net profit shifted from profit to loss, primarily due to increased non-recurring listing expenses, decreased revenue, and higher R&D expenses[33] Adjusted Net Profit (Non-IFRS Measure) Adjusted net profit (excluding the impact of listing expenses) was RMB 12.3 million, a decrease from RMB 21.6 million in the same period of 2024, with an adjusted net profit margin of 8.5%, down from 13.3% last year, as this non-IFRS measure aims to better reflect the Group's underlying operating performance Adjusted Net Profit Comparison (RMB thousand) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit/(Loss) for the Period | (6,398) | 14,413 | | Add: Listing Expenses | 18,746 | 7,172 | | Adjusted Net Profit | 12,348 | 21,585 | | Adjusted Net Profit Margin | 8.5% | 13.3% | - Adjusted net profit (non-IFRS measure) aims to exclude the impact of listing expenses and share-based payments to better reflect the Group's underlying operating performance[36] Liquidity and Financial Resources The Group maintains a prudent capital management policy with ample liquidity, as cash and cash equivalents significantly increased by 1,897.4% to RMB 151.8 million at the end of the reporting period, primarily due to proceeds from the global offering, and the gearing ratio decreased to 42.2%, indicating an improved financial structure Cash and Cash Equivalents As of June 30, 2025, total cash and cash equivalents were approximately RMB 151.8 million, a significant increase of 1,897.4% from December 31, 2024, primarily due to the proceeds from the global offering Cash and Cash Equivalents Comparison (RMB million) | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 151.8 | 7.6 | +1,897.4% | - The significant increase in cash and cash equivalents was primarily due to the proceeds from the global offering[38] Debt As of June 30, 2025, the Group's debt primarily included borrowings of approximately RMB 145.7 million and lease liabilities of approximately RMB 0.1 million, with all borrowings bearing fixed interest rates, and the Group closely monitoring interest rate risk Debt Composition (RMB million) | Debt Type | June 30, 2025 | | :--- | :--- | | Borrowings | 145.7 | | Lease Liabilities | 0.1 | - All borrowings bear fixed interest rates, and the Group currently does not hedge interest rate risk but will monitor it closely[39] Capital Structure As of June 30, 2025, the Group's net assets were approximately RMB 307.1 million, a significant increase from RMB 160.1 million as of December 31, 2024 Net Assets Comparison (RMB million) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net Assets | 307.1 | 160.1 | Capital Expenditure During the reporting period, capital expenditure was approximately RMB 35.4 million, an increase of RMB 23.6 million from the same period last year, primarily for the construction of the Malaysia production base, including land, construction, and equipment investments Capital Expenditure Comparison (RMB million) | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Capital Expenditure | 35.4 | 11.8 | +23.6 | - The increase in capital expenditure was mainly due to investments in the construction of the Malaysia production base during the reporting period, including land, construction, and equipment[41] Capital Commitments As of June 30, 2025, the Group had no significant capital commitments - As of June 30, 2025, the Group had no significant capital commitments[42] Borrowings As of June 30, 2025, total bank borrowings were approximately RMB 145.7 million, all due within two years and bearing fixed interest rates, with the Group having approximately RMB 140.0 million in undrawn bank credit facilities Bank Borrowings (RMB million) | Metric | June 30, 2025 | | :--- | :--- | | Total Bank Borrowings | 145.7 | | Undrawn Bank Credit Facilities | 140.0 | - All outstanding bank borrowings bear fixed interest rates, are denominated in RMB, and are due within two years[43] Lease Liabilities Lease liabilities decreased from RMB 0.2 million as of December 31, 2024, to RMB 0.1 million as of June 30, 2025, primarily due to a reduction in the balance from lease payments and related interest payments Lease Liabilities Comparison (RMB million) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Lease Liabilities | 0.1 | 0.2 | Contingent Liabilities Except for the civil litigation disclosed in the prospectus and the July 2025 announcement, the Group had no other significant contingent liabilities as of June 30, 2025 - Except for the disclosed civil litigation, as of June 30, 2025, the Group had no significant contingent liabilities[45] Employees and Remuneration Policy As of June 30, 2025, the Group had 653 employees with total employee benefit expenses of approximately RMB 40.0 million, offering fair career development opportunities, training, performance bonuses, and an employee shareholding scheme to incentivize staff Employee and Remuneration Overview | Metric | June 30, 2025 | | :--- | :--- | | Number of Employees | 653 | | Total Employee Benefit Expenses (RMB million) | 40.0 | - The Group has an employee shareholding scheme, holding company shares through Xiamen Gaoli Hezhong and Xiamen Gaoli Zhongcheng platforms, accounting for approximately 2.03% of the total issued shares[48][147] Pledge of Assets Certain bank loans of the Group are secured by mortgages on the new Xiamen production base in Tongan District, Xiamen City, China, with a total carrying value of approximately RMB 118.9 million as of June 30, 2025 Asset Pledge Information (RMB million) | Pledged Asset Type | Carrying Value as of June 30, 2025 | | :--- | :--- | | New Xiamen Production Base Mortgage | 118.9 | Significant Investments, Acquisitions and Disposals As of June 30, 2025, the Group held no significant investments and had no material acquisitions or disposals of subsidiaries, associates, or joint ventures, and while it subscribed to wealth management products for cash management, it did not utilize proceeds from the global offering for this purpose - As of June 30, 2025, the Group held no significant investments and had no material acquisitions or disposals of subsidiaries, associates, or joint ventures[50] - The Group subscribed to wealth management products for cash management purposes but did not utilize proceeds from the global offering[50] Plans for Material Investments or Capital Assets On July 30, 2025, Shanghai Rongta Zhizhi Technology Co., Ltd., a wholly-owned subsidiary of the Group, signed an agreement to acquire industrial buildings in Qingpu District, Shanghai, with a total gross floor area of approximately 1,810.59 square meters, for RMB 42,910,983, to be funded by internal resources, with no other major investment plans currently apart from this acquisition and those disclosed in the prospectus - The Group's wholly-owned subsidiary, Shanghai Rongta Zhizhi Technology Co., Ltd., signed an agreement on July 30, 2025, to acquire two industrial buildings in Qingpu District, Shanghai, with a total gross floor area of approximately 1,810.59 square meters, for RMB 42,910,983[51] - The acquisition will be funded by the Group's internal resources, and proceeds from the global offering will not be used to pay the total consideration[52] Gearing Ratio As of June 30, 2025, the Group's gearing ratio was approximately 42.2%, a decrease from 52.5% as of December 31, 2024, primarily due to the increase in shareholders' equity resulting from the company's share listing Gearing Ratio Comparison | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Gearing Ratio | 42.2% | 52.5% | -10.3pp | - The decrease in the gearing ratio was primarily due to the increase in shareholders' equity resulting from the company's shares being listed on the Stock Exchange in June 2025[53] Currency and Foreign Exchange Risk The Group faces foreign exchange risk from USD-denominated revenue and some costs, as well as HKD-denominated global offering proceeds, with no significant difficulties or impacts during the reporting period, and while there is currently no foreign exchange hedging policy, management monitors and considers hedging - The Group faces foreign exchange risk arising from USD-denominated revenue and some costs, as well as HKD-denominated proceeds from the global offering[54] - No significant difficulties or impacts occurred during the reporting period, and while there is currently no foreign exchange hedging policy, management will monitor and consider hedging[54] Material Events After the Reporting Period Except as disclosed in this interim report, no material events affecting the Group have occurred from June 30, 2025, up to the date of this interim report - Except as disclosed in this interim report, no material events affecting the Group have occurred from June 30, 2025, up to the date of this interim report[55] Condensed Consolidated Interim Statement of Comprehensive Income This statement presents the condensed consolidated interim comprehensive income for the six months ended June 30, 2025, and the corresponding period in 2024, showing the Group's shift from profit to loss, primarily due to decreased revenue and increased expenses Condensed Consolidated Interim Statement of Comprehensive Income (RMB thousand) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue | 145,617 | 162,491 | | Cost of Sales | (106,035) | (118,620) | | Gross Profit | 39,582 | 43,871 | | Operating (Loss)/Profit | (7,801) | 15,696 | | Net Finance Costs | (1,004) | (682) | | (Loss)/Profit Before Income Tax | (8,805) | 15,014 | | Income Tax Expense | 2,407 | (601) | | (Loss)/Profit and Total Comprehensive Income for the Period | (6,398) | 14,413 | | Basic and Diluted (Loss)/Earnings Per Share (RMB per share) | (0.08) | 0.18 | Condensed Consolidated Interim Statement of Financial Position This statement presents the condensed consolidated interim financial position as of June 30, 2025, and December 31, 2024, indicating a significant increase in the Group's total assets and shareholders' equity due to the listing, alongside an increase in total liabilities Condensed Consolidated Interim Statement of Financial Position (RMB thousand) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Non-current Assets | 183,506 | 156,254 | | Current Assets | 347,754 | 180,874 | | Total Assets | 531,260 | 337,128 | | Equity | | | | Total Equity | 307,057 | 160,063 | | Liabilities | | | | Non-current Liabilities | 17,908 | 31,883 | | Current Liabilities | 206,295 | 145,182 | | Total Liabilities | 224,203 | 177,065 | | Total Equity and Liabilities | 531,260 | 337,128 | Condensed Consolidated Interim Statement of Changes in Equity This statement presents the condensed consolidated interim changes in equity for the six months ended June 30, 2025, and the corresponding period in 2024, showing a substantial increase in share capital and reserves in 2025 due to the listing, despite a loss incurred during the period Condensed Consolidated Interim Statement of Changes in Equity (RMB thousand) | Metric | Share Capital | Reserves | Retained Earnings | Total | | :--- | :--- | :--- | :--- | :--- | | Balance as of January 1, 2025 | 76,333 | 20,044 | 63,686 | 160,063 | | Loss for the Period | – | – | (6,398) | (6,398) | | Shares Issued upon Listing | 18,400 | 149,592 | – | 167,992 | | Capitalized Listing Expenses after Listing | – | (14,451) | – | (14,451) | | Foreign Currency Translation Differences | – | (149) | – | (149) | | Balance as of June 30, 2025 | 94,733 | 155,036 | 57,288 | 307,057 | | Balance as of January 1, 2024 | 80,000 | 45,149 | 57,557 | 182,706 | | Profit for the Period | – | – | 14,413 | 14,413 | | Dividend Distribution | – | – | (1,500) | (1,500) | | Repurchase of Ordinary Shares | (3,667) | (28,823) | – | (32,490) | | Balance as of June 30, 2024 | 76,333 | 16,326 | 70,470 | 163,129 | Condensed Consolidated Interim Statement of Cash Flows This statement presents the condensed consolidated interim cash flows for the six months ended June 30, 2025, and the corresponding period in 2024, indicating cash outflow from operating activities in 2025, but a significant increase in cash inflow from financing activities, leading to a net increase in cash and cash equivalents Condensed Consolidated Interim Statement of Cash Flows (RMB thousand) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Cash (Used in)/Generated from Operating Activities | (31,027) | 12,067 | | Net Cash Used in Investing Activities | (36,883) | (33,667) | | Net Cash Generated from Financing Activities | 212,558 | 24,307 | | Net Increase in Cash and Cash Equivalents | 144,648 | 2,707 | | Cash and Cash Equivalents at End of Period | 151,779 | 17,917 | - In H1 2025, there was cash outflow from operating activities, but cash inflow from financing activities significantly increased, primarily due to proceeds from the issuance of shares[65] Notes to the Condensed Consolidated Interim Financial Statements This section provides detailed notes to the condensed consolidated interim financial statements, explaining the Group's accounting policies, financial risk management, composition and changes in various financial data, and related party transactions, offering essential context and details for understanding the financial statements 1 General Information of the Group Rongta Technology (Xiamen) Group Co., Ltd., incorporated in China, primarily manufactures and sells automatic identification and data collection (AIDC) equipment, including specialized printers, weighing scales, POS terminals, and PDA devices, with its shares listed on the Main Board of the Hong Kong Stock Exchange since June 10, 2025 - The Company primarily engages in the manufacturing and sale of automatic identification and data collection (AIDC) equipment in China, including specialized printers, weighing scales, point-of-sale ("POS") terminals, and personal digital assistant ("PDA") devices, and provides related solutions[66] - The Company's shares have been listed on the Main Board of The Stock Exchange of Hong Kong Limited since June 10, 2025[67] 2 Basis of Preparation The condensed consolidated interim financial statements are prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and should be read in conjunction with the consolidated financial statements for the year ended December 31, 2024, with adopted accounting policies consistent with the 2024 financial statements, except for newly adopted and revised standards - The condensed consolidated interim financial statements are prepared in accordance with International Accounting Standard ("IAS") 34 "Interim Financial Reporting"[71] - The accounting policies adopted in the preparation of these condensed consolidated interim financial statements are consistent with those followed in the preparation of the 2024 financial statements, except for the adoption of new and revised standards[71] 3 Significant Accounting Policies This section outlines the principal accounting policies adopted in preparing the condensed consolidated interim financial statements, consistent with the 2024 financial statements, and lists newly adopted and revised standards for this reporting period, such as the amendment to IAS 21, as well as standards not yet effective, like amendments to IFRS 9 and 18 - The principal accounting policies adopted in the preparation of these condensed consolidated interim financial statements are consistent with those applied in the 2024 financial statements, except for the adoption of new and revised standards[72] - The Group has adopted the amendment to IAS 21 "Lack of Exchangeability" and is currently assessing the full impact of new and revised standards not yet effective, such as amendments to IFRS 9 and 18[74][75][76] 4 Estimates The preparation of interim financial statements requires management to make judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts of financial items, with the significant judgments and sources of estimation uncertainty made by management during this reporting period being the same as those in the 2024 financial statements - The preparation of interim financial statements requires management to make judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income, and expenses[77] - In preparing these condensed consolidated interim financial statements, the significant judgments made by management and the key sources of estimation uncertainty are the same as those applied in the 2024 financial statements[77] 5 Financial Risk Management This section describes the market risks (currency and interest rate risks), credit risk, and liquidity risk faced by the Group, along with its risk management plans, noting that the Group's risk management policies have not changed since the end of the previous year, and detailing the assessment methods for credit and liquidity risks, as well as fair value estimations 5.1 Financial Risk Factors The Group faces market risks (currency and interest rates), credit risk, and liquidity risk, with credit risk primarily arising from cash and cash equivalents, trade receivables, and other financial assets, managed through transactions with reputable institutions and regular client credit assessments, while liquidity risk is managed by maintaining sufficient cash and bank financing (a) Credit Risk The Group's credit risk primarily stems from cash and cash equivalents, trade receivables, and other financial assets, with low credit risk for cash and cash equivalents due to transactions with state-owned or reputable financial institutions in China, while trade receivables credit risk is managed through credit policies, continuous credit assessments, and the simplified approach under IFRS 9 for measuring expected credit losses - The Group is exposed to credit risk from cash and cash equivalents, trade and bills receivable, and other financial assets measured at amortized cost[80] - Credit risk for cash and cash equivalents is low, as the Group only transacts with state-owned or reputable financial institutions in China[81] - Credit risk for trade receivables is managed through credit policies, continuous credit assessments, and the simplified approach under IFRS 9 for measuring expected credit losses[82] Expected Credit Loss Provision for Trade and Bills Receivable (RMB thousand) | Aging | Carrying Amount as of June 30, 2025 | Expected Loss Rate as of June 30, 2025 | Total Loss Provision as of June 30, 2025 | Carrying Amount as of December 31, 2024 | Expected Loss Rate as of December 31, 2024 | Total Loss Provision as of December 31, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Current | 55,461 | 0.46% | (253) | 57,590 | 0.02% | (12) | | Within Six Months | 2,482 | 5.00% | (124) | 7,545 | 0.68% | (51) | | Within Twelve Months | 234 | 29.91% | (70) | 1,306 | 20.83% | (272) | | Over One Year | 38 | 100.00% | (38) | 137 | 56.20% | (77) | | Total | 58,215 | 0.83% | (485) | 66,578 | 0.62% | (412) | (b) Liquidity Risk The Group manages liquidity risk by maintaining sufficient cash and cash equivalents and regularly monitoring its liquidity position, with an analysis of contractual undiscounted cash flows for financial liabilities showing that most liabilities, including trade payables and borrowings, are due within one year - Prudent liquidity risk management involves maintaining sufficient cash and cash equivalents and regularly monitoring liquidity risk[90] Financial Liabilities Maturity Analysis (RMB thousand) | Liability Type | Less than One Year (June 30, 2025) | One to Two Years (June 30, 2025) | Total (June 30, 2025) | Less than One Year (December 31, 2024) | One to Two Years (December 31, 2024) | Total (December 31, 2024) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Trade Payables | 38,374 | – | 38,374 | 43,811 | – | 43,811 | | Accrued Expenses and Other Payables (excluding staff salaries and benefits payable and VAT and other taxes payable) | 9,092 | – | 9,092 | 7,254 | – | 7,254 | | Borrowings | 127,745 | 17,908 | 145,653 | 57,942 | 31,379 | 89,321 | | Interest on Borrowings | 1,754 | 20 | 1,774 | 1,704 | 230 | 1,934 | | Lease Liabilities | 129 | – | 129 | 126 | 65 | 191 | | Total | 177,094 | 17,928 | 195,022 | 110,837 | 31,674 | 142,511 | 5.2 Fair Value Estimation This section describes the Group's fair value measurement of financial instruments, primarily financial assets at fair value through profit or loss (wealth management products), categorized into three levels based on the observability of input data, with fair value of wealth management products estimated using the discounted cash flow method, and a sensitivity analysis of significant unobservable input data (expected return rate) disclosed (a) Fair Value Measurement Hierarchy for Fair Value Measurements This section describes the Group's fair value measurement hierarchy for financial instruments, categorized into three levels based on the observability of input data: Level 1 (quoted prices in active markets), Level 2 (valuation techniques using observable market data), and Level 3 (instruments with one or more significant inputs not based on observable market data) - The Group categorizes its financial instruments into three levels according to accounting standards, providing an indication of the reliability of inputs used to determine fair value[96] - Level 1 refers to quoted prices in active markets, Level 2 refers to valuation techniques using observable market data, and Level 3 refers to instruments where one or more significant inputs are not based on observable market data[96] (b) Valuation Techniques Used to Determine Fair Values The fair value of wealth management products is estimated using the discounted cash flow method based on management's judgments and estimated expected returns, while the fair value of foreign currency forward contracts is estimated using quotes provided by banks, with no changes in valuation methods during the reporting period, and a sensitivity analysis for Level 3 financial assets disclosed - The fair value of wealth management products is estimated using the discounted cash flow method based on management's judgments and estimated expected returns[97] Fair Value Estimation of Level 3 Financial Assets (RMB thousand) | Metric | June 30, 2025 | December 31, 2024 | Unobservable Input Data | Input Data Range (June 30, 2025) | Input Data Range (December 31, 2024) | | :--- | :--- | :--- | :--- | :--- | :--- | | Financial Assets at Fair Value Through Profit or Loss – Wealth Management Products | 27,216 | 22,422 | Expected Return Rate | 2.12-2.28% | 2.23-2.67% | - If the price of the relevant instruments increases/decreases by 10%, the Group's pre-tax profit would increase/decrease by approximately RMB 2,721,600 (June 30, 2025) and RMB 4,885,000 (December 31, 2024), respectively, due to gains/losses on financial instruments classified as at fair value through profit or loss[100] 6 Revenue and Segment Information This section provides the Group's revenue and segment information, confirming that the Group primarily manufactures and sells AIDC equipment in China, with revenue disaggregated by product and service, and customer location, noting a decrease in revenue across all product lines during the reporting period, and disclosing information related to contract liabilities and unsatisfied performance obligations (a) Description of Segments and Principal Activities The Group primarily engages in the manufacturing and sale of specialized printers, weighing scales, POS terminals, and PDA devices in China, and provides related solutions, with the decision-makers viewing this business as a single operating segment for strategic decisions and resource allocation, and all business and operations conducted in China - The Group primarily engages in the manufacturing and sale of automatic identification and data collection (AIDC) equipment in China, including specialized printers, weighing scales, POS terminals, and PDA devices, and provides related solutions[101] - The decision-makers review the operating results of this business as a single operating segment to make strategic decisions and allocate resources[101] (b) Disaggregation of Revenue During the reporting period, the Group's total revenue was RMB 145.6 million, with printing equipment contributing the most, but all product lines experienced a year-on-year decrease in revenue, and revenue from both China and overseas markets also decreased Revenue Breakdown by Product and Service (RMB thousand) | Product and Service | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Printing Equipment | 100,453 | 109,534 | | Weighing Scales | 24,034 | 27,133 | | POS Terminals and PDAs | 12,363 | 16,088 | | Accessories and Other Purchased Products | 7,877 | 8,716 | | Others | 890 | 1,020 | | Total | 145,617 | 162,491 | Revenue Breakdown by Customer Location (RMB thousand) | Customer Location | H1 2025 | H1 2024 | | :--- | :--- | :--- | | China | 74,193 | 79,816 | | Overseas Countries | 71,424 | 82,675 | | Total | 145,617 | 162,491 | (c) Contract Liabilities As of June 30, 2025, the Group's contract liabilities amounted to RMB 7,782 thousand, related to non-refundable advance payments from customers, with RMB 7,715 thousand of revenue recognized during the reporting period related to the opening balance of contract liabilities Contract Liabilities (RMB thousand) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Contract Liabilities | 7,782 | 7,715 | Revenue Recognized Related to Contract Liabilities (RMB thousand) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Revenue Recognized (included in opening balance of contract liabilities) | 7,715 | 10,307 | (d) Unsatisfied Performance Obligations The Group's vast majority of contracts have a duration of one year or less, thus the transaction price allocated to unsatisfied or partially unsatisfied performance obligations is not disclosed - The Group's vast majority of contracts have a duration of one year or less, thus the transaction price allocated to unsatisfied or partially unsatisfied performance obligations is not disclosed[106] 7 Expenses by Nature This section details expenses by nature, including raw materials and consumables, employee benefits, listing expenses, amortization, and depreciation, noting an increase in total expenses during the reporting period, with a significant rise in listing expenses Expenses Breakdown by Nature (RMB thousand) | Expense Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Raw Materials and Consumables Used | 84,883 | 97,815 | | Employee Benefit Expenses | 39,985 | 37,072 | | Listing Expenses | 18,746 | 7,172 | | Amortization of Intangible Assets | 3,297 | 2,916 | | Depreciation of Property, Plant and Equipment | 2,162 | 2,127 | | Total Expenses Deducted in Profit or Loss | 160,302 | 154,839 | - Listing expenses significantly increased from RMB 7,172 thousand in H1 2024 to RMB 18,746 thousand in H1 2025[106] 8 Net Finance Income and Costs During the reporting period, net finance costs amounted to RMB 1,004 thousand, an increase from RMB 682 thousand in the same period of 2024, primarily due to a decrease in interest income from bank deposits Net Finance Income and Costs (RMB thousand) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Finance Income | 259 | 673 | | Finance Costs | (1,263) | (1,355) | | Net Finance Costs | (1,004) | (682) | - The decrease in finance income was mainly due to reduced interest income from bank deposits[107] 9 Income Tax Expense During the reporting period, an income tax credit of RMB 2,407 thousand was recorded, compared to an income tax expense of RMB 601 thousand in the same period of 2024, primarily due to the recognition of deferred tax assets as the Group incurred a loss, with the Group enjoying a 15% preferential tax rate as a high-tech enterprise in China, and its Chinese subsidiaries qualifying for "small-profit enterprise" tax incentives (a) China Corporate Income Tax ("CIT") The Company enjoys a 15% preferential income tax rate as a high-tech enterprise in China, valid until 2026, and its Chinese subsidiaries qualify as "small-profit enterprises," benefiting from a reduced taxable income (25% or 50%) and a 20% CIT rate - The Company enjoys a 15% preferential income tax rate as a high-tech enterprise, valid until 2026[109] - Chinese subsidiaries that qualify as "small-profit enterprises" benefit from a reduced taxable income (25% or 50%) and a 20% CIT rate[110] (b) Malaysia and Singapore Income Tax The Group's subsidiary incorporated in Malaysia is subject to Malaysian income tax at a rate of 24%, while its subsidiary incorporated in Singapore is subject to Singapore income tax at a rate of 17% - The Group's subsidiary incorporated in Malaysia is subject to Malaysian income tax at a rate of 24%[111] - The Group's subsidiary incorporated in Singapore is subject to Singapore income tax at a rate of 17%[112] 10 Earnings Per Share During the reporting period, basic and diluted loss per share was RMB 0.08, compared to earnings of RMB 0.18 in the same period of 2024, reflecting the Group's shift from profit to loss Earnings Per Share Comparison | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | (Loss)/Profit Attributable to Owners of the Company (RMB thousand) | (6,398) | 14,413 | | Weighted Average Number of Ordinary Shares (thousand shares) | 76,333 | 78,167 | | Basic and Diluted (Loss)/Earnings Per Share (RMB per share) | (0.08) | 0.18 | - The Company had no potentially dilutive ordinary shares outstanding during the reporting period, thus diluted earnings per share are equal to basic earnings per share[114] 11 Dividends For the six months ended June 30, 2025, no dividends were paid, declared, or proposed (compared to RMB 1,500,000 in the same period of 2024) Dividend Payout (RMB thousand) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Dividends Paid/Declared/Proposed | – | 1,500 | 12 Property, Plant and Equipment, Right-of-use Assets, Investment Properties and Intangible Assets This section presents the changes in the Group's property, plant and equipment, right-of-use assets, investment properties, and intangible assets, noting additions of RMB 6,379 thousand to property, plant and equipment and RMB 2,876 thousand to intangible assets during the reporting period Asset Movement Overview (RMB thousand) | Asset Type | Balance as of January 1, 2025 | Additions | Depreciation/Amortization | Disposals | Balance as of June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | Property, Plant and Equipment | 84,444 | 6,379 | (2,162) | (4,458) | 84,203 | | Right-of-use Assets | 4,682 | – | (108) | – | 4,574 | | Investment Properties | 39,953 | – | (502) | – | 39,451 | | Intangible Assets | 23,021 | 2,876 | (3,297) | – | 22,600 | 13 Inventories As of June 30, 2025, the Group's total inventories amounted to RMB 64,350 thousand, a slight decrease from December 31, 2024, with a net reversal of inventory impairment of RMB 429 thousand recognized during the reporting period Inventories Breakdown (RMB thousand) | Inventory Type | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Raw Materials | 42,932 | 44,431 | | Work-in-progress | 3,903 | 779 | | Finished Goods | 25,941 | 28,091 | | Less: Inventory Impairment Provision | (8,426) | (8,855) | | Total | 64,350 | 64,446 | - For the six months ended June 30, 2025, a net reversal of inventory impairment of approximately RMB 429,000 was recognized[118] 14 Trade and Bills Receivable As of June 30, 2025, net trade and bills receivable amounted to RMB 57,730 thousand, a decrease from December 31, 2024, with receivables due within 180 days accounting for the majority, and the Group applying the simplified approach under IFRS 9 to provide for expected credit losses Trade and Bills Receivable Breakdown (RMB thousand) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Bills Receivable | 48 | 937 | | Trade Receivables – Third Parties | 58,167 | 65,641 | | Less: Impairment Provision | (485) | (412) | | Total | 57,730 | 66,166 | Aging Analysis of Trade Receivables (RMB thousand) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 180 Days | 57,895 | 64,198 | | 181 to 360 Days | 234 | 1,306 | | Over 360 Days | 38 | 137 | | Total | 58,167 | 65,641 | - The Group applies the simplified approach under IFRS 9 to provide for expected credit loss provisions[120] 15 Prepayments and Other Receivables As of June 30, 2025, total prepayments and other receivables amounted to RMB 45,179 thousand, a significant increase from December 31, 2024, primarily due to a substantial growth in prepaid expenses and prepayments for raw materials Prepayments and Other Receivables Breakdown (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Prepaid Expenses | 26,741 | 1,593 | | Prepayments for Raw Materials | 8,770 | 1,938 | | Recoverable VAT | 4,861 | 7,771 | | Recoverable Current Income Tax | 1,962 | – | | Other Receivables – Recoverable Deposits | 936 | 621 | | Prepaid Listing Expenses | – | 5,342 | | Others | 2,007 | 3,058 | | Less: Impairment Provision | (98) | (92) | | Total | 45,179 | 20,231 | - The significant increase in prepayments and other receivables was primarily due to a substantial growth in prepaid expenses and prepayments for raw materials[122] 16 Financial Assets and Liabilities at Fair Value Through Profit or Loss As of June 30, 2025, the Group's financial assets at fair value through profit or loss primarily consisted of wealth management products, amounting to RMB 27,216 thousand, an increase from December 31, 2024, with the Group designating these investments as financial assets at fair value through profit or loss based on its risk management and investment strategies Financial Assets at Fair Value Through Profit or Loss (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Investment in Wealth Management Products | 27,216 | 22,422 | Movement in Investment in Wealth Management Products (RMB thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Opening Balance | 22,422 | 11,504 | | Additions | 127,706 | 115,400 | | Disposals | (123,030) | (94,238) | | Gains on Financial Assets at Fair Value Through Profit or Loss | 118 | 1,119 | | Closing Balance | 27,216 | 33,785 | - The Group manages and assesses the performance of these investments on a fair value basis according to its risk management and investment strategies[124] 17 Cash and Cash Equivalents and Restricted Cash As of June 30, 2025, total cash and cash equivalents amounted to RMB 151,779 thousand, a significant increase from December 31, 2024, with HKD-denominated cash accounting for the largest proportion, reflecting the impact of the global offering proceeds Cash and Cash Equivalents Breakdown (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash on Hand and Bank Balances | 149,550 | 6,955 | | Other Cash and Cash Equivalents | 2,229 | 654 | | Total | 151,779 | 7,609 | Cash and Cash Equivalents by Currency (RMB thousand) | Currency | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | RMB | 4,406 | 6,881 | | USD | 11,699 | 687 | | HKD | 134,263 | – | | Malaysian Ringgit | 1,158 | – | | Others | 253 | 41 | | Total | 151,779 | 7,609 | - The significant increase in HKD-denominated cash primarily reflects the impact of the global offering proceeds[125] 18 Share Capital As of June 30, 2025, issued and fully paid share capital was RMB 94,733 thousand, an increase from December 31, 2024, primarily due to the issuance of 18,400,000 ordinary shares on June 10, 2025, upon the company's listing, raising gross proceeds of approximately HKD 185,555,681 Share Capital Movement Summary (RMB thousand) | Item | Number of Shares | Share Capital | | :--- | :--- | :--- | | Balance as of January 1, 2025 | 76,333,000 | 76,333 | | Shares Issued upon Listing | 18,400,000 | 18,400 | | Balance as of June 30, 2025 | 94,733,000 | 94,733 | - On June 10, 2025, the Company issued 18,400,000 ordinary shares at a price of HKD 10.08 per share, raising gross proceeds of approximately HKD 185,555,681[126] 19 Reserves As of June 30, 2025, total reserves amounted to RMB 155,036 thousand, a significant increase from January 1, 2024, primarily due to an increase in capital reserves from the listing, partially offset by capitalized listing expenses and foreign currency translation differences Reserves Breakdown (RMB thousand) | Reserve Type | Capital Reserve | Statutory Reserve | Other Comprehensive Income | Share-based Compensation | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | Balance as of January 1, 2025 | (8,946) | 16,025 | – | 12,965 | 20,044 | | Shares Issued upon Listing | 149,592 | – | – | – | 149,592 | | Capitalized Listing Expenses after Listing | (14,451) | – | – | – | (14,451) | | Foreign Currency Translation Differences | – | – | (149) | – | (149) | | Balance as of June 30, 2025 | 126,195 | 16,025 | (149) | 12,965 | 155,036 | - According to relevant Chinese laws and regulations, Chinese subsidiaries are required to appropriate 10% of their annual statutory net profit to the statutory surplus reserve[129] 20 Trade Payables As of June 30, 2025, total trade payables amounted to RMB 38,374 thousand, a decrease from December 31, 2024, with all trade payables due within one year Trade Payables Breakdown (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade Payables – Third Parties | 38,374 | 43,811 | - All trade payables are due within one year and are denominated in RMB[130] 21 Accruals and Other Payables As of June 30, 2025, total accruals and other payables amounted to RMB 20,107 thousand, a decrease from December 31, 2024, primarily due to reductions in staff salaries and benefits payable, VAT and other taxes payable, and listing expenses payable Accruals and Other Payables Breakdown (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Staff Salaries and Benefits Payable | 7,690 | 9,510 | | Other Accrued Expenses and Payables | 6,741 | 2,502 | | VAT and Other Taxes Payable | 3,127 | 6,840 | | Listing Expenses Payable | 1,915 | 4,313 | | Payables for Purchase of Property, Plant and Equipment | 436 | 439 | | Deferred Income – Current Portion | 198 | 198 | | Total | 20,107 | 23,802 | - The decrease was mainly due to reductions in staff salaries and benefits payable, VAT and other taxes payable, and listing expenses payable[131] 22 Borrowings As of June 30, 2025, the Group's total borrowings amounted to RMB 145,653 thousand, mostly short-term bank borrowings, all denominated in RMB, bearing fixed interest rates with an average annual rate of 2.24%, and largely due within one year, with some long-term bank borrowings secured by mortgages on land use rights, buildings, and investment properties Borrowings Breakdown (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Non-current Borrowings | 17,908 | 31,379 | | Current Borrowings | 127,745 | 57,942 | | Total Borrowings | 145,653 | 89,321 | - Some long-term bank borrowings are secured by mortgages on the land use rights, buildings, and investment properties at the Group's headquarters in Xiamen[132] Carrying Value of Pledged Assets (RMB thousand) | Pledged Asset Type | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Property, Plant and Equipment | 75,061 | 76,025 | | Right-of-use Assets | 4,434 | 4,483 | | Investment Properties | 39,451 | 39,953 | | Total | 118,946 | 120,461 | - Bank borrowings are denominated in RMB and bear fixed interest rates, with average annual rates of 2.24% (June 30, 2025) and 3.03% (December 31, 2024), respectively[134] 23 Related Party Transactions This section discloses the Group's transactions and balances with related parties, including the ultimate controlling shareholder Mr. Xu Kaiming and Xiamen Rongxin, which he controls, noting that the Group provided short-term loans to Xiamen Rongxin during the reporting period and disclosing key management personnel compensation (a) Related Parties of the Group The Group's related parties include Mr. Xu Kaiming, the ultimate controlling shareholder, and Xiamen Rongxin, the ultimate holding company controlled by him Related Party List | Related Party Name | Relationship | | :--- | :--- | | Mr. Xu Kaiming | Ultimate Controlling Shareholder | | Xiamen Rongxin | Ultimate Holding Company Controlled by Mr. Xu Kaiming | (b) Transactions with Related Parties During the reporting period, the Group provided short-term loans of RMB 1,500 thousand to Xiamen Rongxin, bearing an annual interest rate of 3% and repayable within one year, while in the same period of 2024, Xiamen Rongxin repaid loans and offset payables Transactions with Related Parties (RMB thousand) | Transaction Type | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Interest Income from Xiamen Rongxin | 4 | 41 | | Loans to Xiamen Rongxin | 1,500 | – | | Repayment of Loans by Xiamen Rongxin | – | 44 | | Offset of Payables by Xiamen Rongxin | – | 32,489 | - For the period ended June 30, 2025, the Group made several short-term loans to Xiamen Rongxin, which were unsecured and non-trade in nature, bearing an annual interest rate of 3% and repayable within one year[137] (c) Balances with Related Parties As of June 30, 2025, amounts due from related parties (non-trade in nature) totaled RMB 1,500 thousand, all from Xiamen Rongxin Balances with Related Parties (RMB thousand) | Related Party | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Xiamen Rongxin (Amounts Due from Related Parties) | 1,500 | – | (d) Key Management Personnel Compensation For the six months ended June 30, 2025, key management personnel compensation was approximately RMB 1,590 thousand, an increase from RMB 1,271 thousand in the same period of 2024 Key Management Personnel Compensation Comparison (RMB thousand) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Key Management Personnel Compensation | 1,590 | 1,271 | Corporate Governance and Other Information This section discloses the Group's corporate governance practices and other important information, including share interests of directors, supervisors, and substantial shareholders, employee shareholding schemes, use of listing proceeds, interim dividend policy, material litigation, and compliance with the Corporate Governance Code and Model Code Directors, Supervisors and Chief Executive Interests in Shares, Underlying Shares and Debentures As of June 30, 2025, Mr. Xu Kaiming held a 32.04% beneficial interest and a 39.49% controlled corporate interest in the Company, while Mr. Xu Kaihe held a 2.38% beneficial interest and a 1.07% controlled corporate interest, and jointly held a 38.53% interest with Mr. Xu Kaiming Directors, Supervisors and Chief Executive Share Interests (as of June 30, 2025) | Name | Nature of Interest | Number of Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Xu Kaiming | Beneficial Interest | 30,354,873(L) | 32.04% | | | Controlled Corporate Interest | 37,405,685(L) | 39.49% | | Mr. Xu Kaihe | Beneficial Interest | 2,250,953(L) | 2.38% | | | Controlled Corporate Interest | 1,016,717(L)