香江电器(02619) - 2025 - 中期财报

Corporate Information This section provides an overview of the company's board, committees, professional advisors, and key corporate details Board and Committees This section lists the members and chairs of the company's Board of Directors, Supervisory Committee, joint company secretaries, and various committees including Audit, Remuneration, Nomination, and Strategy - The Board of Directors comprises six members, including Executive Director Mr. Pan Yun (Chairman), and three independent non-executive directors[3][4] - The Audit Committee, Remuneration Committee, Nomination Committee, and Strategy Committee have all been established, with their respective chairpersons clearly defined[3][4] Professional Advisors and Offices This section provides information on the company's auditors, legal counsel, compliance advisors, and its registered offices, headquarters, and principal places of business in China and Hong Kong - The company's auditor is Deloitte Touche Tohmatsu, and its legal counsel is DeHeng Law Offices (Hong Kong) LLP[5][6] - The company's registered office in China is located in Qichun County, Hubei Province, its China headquarters in Yantian District, Shenzhen, and its principal place of business in Hong Kong is in North Point[6][7][8] Company Details This section lists the company's principal bankers, H-share registrar in Hong Kong, share name, stock code, and company website - The company's principal bankers include Ping An Bank Co., Ltd. Shenzhen Branch Longhua Sub-branch and DBS Bank (China) Limited Shenzhen Branch[10] - The company's share name is Xiangjiang Electric, stock code is 2619, and company website is http://www.xjgroup.com[10](index=10&type=chunk) Key Highlights This section summarizes the company's critical financial and operational performance indicators Financial Performance Summary For the six months ended June 30, 2025, the company experienced significant declines in revenue, gross profit, and profit for the period, reflecting challenging operating conditions Key Financial Indicators for H1 2025 | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 542,816 | 614,423 | -11.7% | | Gross Profit | 107,567 | 137,410 | -21.7% | | Profit for the Period | 25,313 | 60,539 | -58.2% | - Revenue decreased by 11.7% year-on-year, gross profit by 21.7%, and profit for the period significantly declined by 58.2%[11] Management Discussion and Analysis This section provides an in-depth review of the group's business operations, financial performance, future prospects, and liquidity Business Overview The Group primarily engages in the R&D, design, production, and sales of electrical and non-electrical household products, including heating, electric, electronic appliances, garden hoses, and cookware - The Group is a Chinese manufacturer of household living products, specializing in the R&D, design, manufacturing, and sales of both electrical and non-electrical household items[12][15] - Electrical household products are categorized into three main types: heating (e.g., electric ovens, air fryers), electric (e.g., blenders, egg beaters), and electronic (e.g., electronic scales, humidifiers)[12][15] - Non-electrical household products include garden hoses and cookware[12][15] Business Review In H1 2025, the Group experienced declines in sales volume and revenue, gross margin contraction, and increased administrative expenses due to US trade policy uncertainties, leading to a significant drop in net profit; however, the Group actively adjusted strategies and explored emerging markets - Uncertainties arising from US trade policies (e.g., reciprocal tariff policies) led downstream customers to adopt a wait-and-see approach[13][16] Business Performance for H1 2025 | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Sales Volume | 9.0 million units | 10.6 million units | -15.4% | | Revenue | RMB 542.8 million | RMB 614.4 million | -11.7% | | Gross Margin | 19.8% | 22.4% | -2.6 percentage points | | Gross Profit | RMB 107.6 million | RMB 137.4 million | -21.7% | | Administrative Expenses | RMB 55.4 million | RMB 45.8 million | +20.9% | | Exchange Gain | RMB 4.5 million | RMB 8.8 million | -49.2% | | Net Profit | RMB 25.3 million | RMB 60.5 million | -58.2% | - Leveraging its advantages in product quality and service capabilities, the Group flexibly adjusted sales strategies and actively explored emerging markets and expanded product categories to counter adverse conditions[13][16] Business Prospects The company will pursue strategic goals by advancing overseas production capacity, upgrading automation and digitalization, and increasing R&D investment to enhance core competitiveness and market share in a complex operating environment - The company will steadfastly implement its strategic goals, fully leveraging its advantages in intelligent manufacturing of household products to continuously enhance core competitiveness and market share[18][20] - Advancing overseas production capacity: The first overseas production base was established in Indonesia (2023), and a second base was set up in Thailand (investing 67 mu of land in 2024), aiming to build a global production layout and mitigate trade risks[18][20] - Upgrading automation and digitalization: Launching an intelligent manufacturing plan, establishing the Xiangjiang Smart Factory in Huizhou, procuring advanced automated equipment, and planning to implement a computerized manufacturing execution system for real-time production monitoring[19][21] - Strengthening R&D investment: Planning to construct a new R&D center with a total floor area of approximately 6,000 square meters in Qichun County, Hubei, and collaborating with universities and research institutions to explore new technologies, processes, and material applications to enhance product technological content and added value[22][26] Financial Review The Group's financial performance in H1 2025 was impacted by multiple adverse factors, leading to significant declines in revenue, gross profit, and net profit, though other income increased, and shareholders' equity grew due to listing and profit for the period Key Financial Data Changes for H1 2025 | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Change (%) | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Revenue | 542.8 | 614.4 | -11.7% | Sales volume decline due to US tariff policy uncertainties | | Gross Profit | 107.6 | 137.4 | -21.7% | Decline in sales volume and overall gross margin | | Gross Margin | 19.8% | 22.4% | -2.6 percentage points | Decline in gross margin for some products | | Cost of Sales | 435.2 | 477.0 | -8.8% | Decrease in sales volume | | Other Income | 12.7 | 8.8 | +44.3% | 190.5% increase in government grants | | Other Gains and Losses | 2.5 | 8.5 | -70.6% | Decrease in exchange gains due to exchange rate fluctuations | | Selling Expenses | 12.4 | 14.9 | -17.1% | Decrease in sales personnel wages due to reduced sales scale | | Administrative Expenses | 55.4 | 45.8 | +20.9% | Increase in management personnel at China and Indonesia production facilities | | R&D Expenses | 14.7 | 16.5 | -10.4% | Decrease in the number of R&D projects | | Other Expenses | 0 | 1.8 | -100% | Decrease in donations and termination of A-share listing plan | | Finance Costs | 8.1 | 5.6 | +44.6% | Cessation of interest capitalization after completion of Xiangjiang Smart Factory construction | | Income Tax Expense | 5.4 | 10.4 | -47.9% | Decrease in profit before tax, effective tax rate increased from 14.6% to 17.7% | | Net Profit | 25.3 | 60.5 | -58.2% | Impact of the above factors | - Shareholders' equity increased from RMB 926.2 million as of December 31, 2024, to RMB 1,097.1 million as of June 30, 2025, primarily due to the increase in share capital and reserves from the listing and profit recorded during the reporting period[45][50] Liquidity and Financial Resources As of June 30, 2025, the Group's total bank balances and cash increased, bank borrowings rose, the gearing ratio improved, and no guarantees or pledges were provided to related parties - As of June 30, 2025, the Group's total bank balances and cash amounted to RMB 593.6 million, with pledged and restricted bank deposits totaling RMB 63.5 million, primarily benefiting from listing proceeds and increased bank borrowings[51][57] - Bank borrowings amounted to approximately RMB 389.8 million (December 31, 2024: approximately RMB 323.1 million)[51][57] - The gearing ratio decreased from 45.7% as of December 31, 2024, to 42.1% as of June 30, 2025[53][58] - As of June 30, 2025, the Group had not provided any guarantees or pledges to related parties[52][57] Treasury Policies and Market Risks The Group adopts prudent financial management strategies, maintains robust liquidity, and manages interest rate, industry policy, and foreign exchange risks through various approaches - The Group adopts prudent financial management strategies, mitigating credit risk through continuous credit assessments and closely monitoring liquidity to meet funding requirements[54][59] - Interest rate risk is primarily associated with cash, bank deposits, and interest-bearing borrowings; the Group manages this risk through fixed or floating rate deposits and borrowings, and no interest rate swaps were used for hedging during the reporting period[56][61][62][67] - Changes in industry policies may significantly impact the company's business development, production operations, and domestic and international trade[63][68] - Foreign exchange risk arises from USD and RMB revenues and HKD IPO proceeds; the Group will regularly review and use derivative financial instruments for hedging when necessary[64][69] Other Operational and Financial Information This section covers the Group's contingent liabilities, employee information, use of global offering proceeds, major investments and asset plans, acquisitions and disposals, and asset pledges - As of June 30, 2025, the Group had no significant contingent liabilities[65][70] - As of June 30, 2025, the Group had 2,380 employees, with total staff costs of approximately RMB 103.3 million, a decrease compared to the same period last year[66][71] - The company was listed on the Stock Exchange on June 25, 2025, with net proceeds from the global offering of approximately HKD 155.6 million, which remained unutilized as of June 30, 2025, and will be used according to the purposes and timetable disclosed in the prospectus[73][74][78] - As of June 30, 2025, the Group held no significant equity investments and had no major investment and capital asset plans other than those disclosed in the prospectus[75][76][79][80] - As of June 30, 2025, the Group had no significant acquisitions or disposals of subsidiaries, associates, and joint ventures[81][83] - As of June 30, 2025, certain assets with a total book value of approximately RMB 492.4 million were pledged to secure bank loans of approximately RMB 281.5 million[82][84] Other Information This section details directors' and substantial shareholders' interests, compliance and governance practices, interim dividend decisions, and audit committee review findings Directors' and Chief Executives' Interests This section discloses the interests or short positions of directors and chief executives in the company's shares, underlying shares, and debentures, including Mr. Pan Yun's beneficial and controlled corporate interests in unlisted domestic shares Mr. Pan Yun's Interests in the Company's Shares (as of June 30, 2025) | Name | Share Class | Capacity/Nature of Interest | Number of Securities Held (L) | Approximate Percentage of Relevant Class of Shares | Approximate Percentage of Total Share Capital | | :--- | :--- | :--- | :--- | :--- | :--- | | Mr. Pan Yun | Unlisted Domestic Shares | Beneficial Owner | 110,659,509 | 54.07% | 40.55% | | Mr. Pan Yun | Unlisted Domestic Shares | Interest in Controlled Corporation | 94,000,000 | 45.93% | 34.45% | - Mr. Pan Yun indirectly holds interests in unlisted domestic shares through Qichun Huayu Technology Management Center (Limited Partnership) and Qichun Hengxing Technology Management Center (Limited Partnership)[89][91] Substantial Shareholders' Interests This section lists the interests or short positions of substantial shareholders, other than directors and chief executives, in the company's shares and underlying shares, including Ms. Cao Chengling and several state-backed entities Substantial Shareholders' Interests in the Company's Shares (as of June 30, 2025) | Shareholder Name/Name | Share Class | Capacity/Nature of Interest | Number of Securities Held (L) | Approximate Percentage of Relevant Class of Shares | Approximate Percentage of Total Share Capital | | :--- | :--- | :--- | :--- | :--- | :--- | | Ms. Cao Chengling | Unlisted Domestic Shares | Spouse's Interest | 204,659,509 | 100.00% | 75.00% | | Qichun Huayu | Unlisted Domestic Shares | Beneficial Owner | 54,000,000 | 26.39% | 19.79% | | Qichun Hengxing | Unlisted Domestic Shares | Beneficial Owner | 40,000,000 | 19.54% | 14.66% | | Hubei Shunjie Investment (Hong Kong) Co., Ltd. | H Shares | Beneficial Owner | 15,008,000 | 22.00% | 5.50% | | Hong Kong Xinghuang Holdings Co., Ltd. | H Shares | Beneficial Owner | 11,256,000 | 16.50% | 4.12% | | Hong Kong Yunxing Technology Trade Management Co., Ltd. | H Shares | Beneficial Owner | 3,752,000 | 5.50% | 1.37% | - Ms. Cao Chengling, as the spouse of Mr. Pan Yun, is deemed to have an interest in the shares in which Mr. Pan Yun has an interest[100] - Several state-backed entities, such as Qichun County State-owned Assets Operation Center and Huanggang City State-owned Assets Management Co., Ltd., hold H-share interests through their controlled corporations[100] Compliance and Governance The company has complied with continuous disclosure obligations and the Model Code for Securities Transactions, applying the Corporate Governance Code, with the Board deeming the combined roles of Chairman and CEO held by Mr. Pan Yun to be in the Group's best interest - The company has complied with the continuous disclosure obligations under Rules 13.20, 13.21, and 13.22 of the Listing Rules[101][107] - From the listing date to June 30, 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities[102][108] - All Directors and Supervisors have fully complied with the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules[103][104][109] - The company has applied good corporate governance principles and adopted the Corporate Governance Code, but the roles of Chairman and Chief Executive Officer are combined and held by Mr. Pan Yun, an arrangement the Board believes is in the best interest of the Group[105][106][110][111] Interim Dividend and Post-Reporting Events The Board resolved not to declare an interim dividend for the six months ended June 30, 2025, and no significant events occurred after the reporting period - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025[113][119] - No Director was aware of any significant events relating to the Group's business or financial performance subsequent to the six months ended June 30, 2025, and up to the date of this interim report[114][120] Audit Committee Review The Audit Committee, composed of three independent non-executive directors, reviewed the Group's accounting principles, interim financial information, and this interim report, deeming them compliant with applicable accounting standards and disclosure requirements - The Audit Committee comprises three independent non-executive directors: Dr. Gu Zhaoyang (Chairman), Dr. Huang Hanxiong, and Dr. Li Jiannan[115][121] - The Audit Committee has reviewed the accounting principles and practices adopted by the Group, the unaudited interim financial information, and this interim report, and is of the opinion that they have been prepared in compliance with applicable accounting standards, the Listing Rules, and other legal requirements, and have been adequately disclosed[116][121][122] Report on Review of Condensed Consolidated Financial Statements This section presents the independent auditor's review report on the condensed consolidated financial statements Auditor's Review Report Deloitte Touche Tohmatsu has reviewed the condensed consolidated financial statements in accordance with Hong Kong Standard on Review Engagements 2410, concluding that the statements are prepared in all material respects in accordance with International Accounting Standard 34, with no material matters identified - Deloitte Touche Tohmatsu has reviewed the condensed consolidated financial statements in accordance with Hong Kong Standard on Review Engagements 2410[126][129] - The scope of review is less than that of an audit, thus no audit opinion was expressed, but nothing has come to their attention that causes them to believe the financial statements are not prepared, in all material respects, in accordance with International Accounting Standard 34[126][127][129][130] - The comparative condensed consolidated statement of profit or loss and other comprehensive income, statement of changes in equity, and statement of cash flows for the six months ended June 30, 2024, and related notes have not been reviewed in accordance with Hong Kong Standard on Review Engagements 2410[128][131] Condensed Consolidated Financial Statements This section presents the Group's condensed consolidated financial statements, including the statement of profit or loss, financial position, changes in equity, and cash flows Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the Group experienced significant declines in revenue and net profit, while other comprehensive income shifted from a loss to a gain Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 542,816 | 614,423 | | Gross Profit | 107,567 | 137,410 | | Profit for the Period | 25,313 | 60,539 | | Other Comprehensive Income (Expense) for the Period | 784 | (200) | | Total Comprehensive Income for the Period | 26,097 | 60,339 | | Basic and Diluted Earnings Per Share (RMB) | 0.12 | 0.30 | Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets and shareholders' equity increased, net current assets rose, while non-current liabilities remained stable Summary of Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Non-current Assets | 734,637 | 688,378 | | Current Assets | 1,161,331 | 1,018,601 | | Current Liabilities | 648,654 | 629,994 | | Net Current Assets | 512,677 | 388,607 | | Non-current Liabilities | 150,260 | 150,774 | | Net Assets | 1,097,054 | 926,211 | | Total Equity | 1,097,054 | 926,211 | - Property, plant and equipment increased to RMB 562,289 thousand, and inventories increased to RMB 265,644 thousand[134] - Bank balances and cash significantly increased to RMB 593,617 thousand[134] Condensed Consolidated Statement of Changes in Equity For the six months ended June 30, 2025, the Group's total equity significantly increased due to the issuance of new shares from the initial public offering and profit for the period Summary of Condensed Consolidated Statement of Changes in Equity | Item | January 1, 2025 (RMB thousands) | Profit for the Period (RMB thousands) | Other Comprehensive Income (RMB thousands) | IPO Issuance of New Shares (RMB thousands) | Transaction Costs for New Share Issuance (RMB thousands) | June 30, 2025 (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Share Capital | 204,660 | – | – | 68,220 | – | 272,880 | | Share Premium | 112,713 | – | – | 109,872 | (33,346) | 189,239 | | Reserves | 608,838 | 25,313 | 784 | – | – | 637,991 | | Total | 926,211 | 25,313 | 784 | 178,092 | (33,346) | 1,097,054 | - The initial public offering (IPO) of new shares generated proceeds of RMB 178,092 thousand, after deducting transaction costs of RMB 33,346 thousand[136] Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2025, the Group's net cash from operating activities decreased, net cash used in investing activities increased, but net cash from financing activities significantly rose, leading to a net increase in cash and cash equivalents Summary of Condensed Consolidated Statement of Cash Flows | Activity Type | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 11,983 | 22,063 | | Net Cash Used in Investing Activities | (105,310) | (97,177) | | Net Cash from Financing Activities | 207,964 | 12,751 | | Net Increase (Decrease) in Cash and Cash Equivalents | 114,637 | (62,363) | | Cash and Cash Equivalents at End of Period | 593,617 | 497,018 | - Net cash from financing activities significantly increased, primarily due to new borrowings and proceeds from share issuance[137] - Net cash used in investing activities increased, mainly for the purchase of property, plant and equipment[137] Notes to the Condensed Consolidated Financial Statements This section provides detailed notes to the condensed consolidated financial statements, covering general information, basis of preparation, revenue, segment information, and other financial details General Information and Basis of Preparation This section outlines the company's registration, controlling shareholders, listing status, and principal activities, stating that the condensed consolidated financial statements are prepared in accordance with IAS 34, with no material impact from IFRS amendments applied this period - The company was incorporated in China as a joint stock company, with Mr. Pan Yun and his son, Mr. Guangshe Pan, as controlling shareholders[138][142] - The company's shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on June 25, 2025[138][142] - The condensed consolidated financial statements have been prepared in accordance with International Accounting Standard 34 issued by the International Accounting Standards Board[140][143] - The amendments to IAS 21 'Lack of Exchangeability' were first applied in the current period, but they had no material impact on the financial position and performance[141][144] Revenue and Segment Information The Group's revenue primarily derives from electrical and non-electrical household products, with heating appliances being the largest contributor; overseas markets, particularly North America, are the main income source, and non-current assets are concentrated in China, Thailand, and Indonesia Revenue by Product Category (RMB thousands) | Product Category | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Electrical Household Products | 438,537 | 467,538 | | - Heating Appliances | 275,694 | 296,238 | | - Electric Appliances | 111,458 | 127,415 | | - Electronic Appliances | 51,385 | 43,885 | | Non-Electrical Household Products | 104,279 | 146,885 | | - Garden Hoses | 97,628 | 135,033 | | - Others | 6,651 | 11,852 | | Total Revenue | 542,816 | 614,423 | Revenue by Destination of Shipment (RMB thousands) | Destination of Shipment | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Overseas | 539,173 | 611,398 | | - North America | 445,227 | 505,598 | | - Europe | 44,316 | 62,042 | | - Oceania | 28,300 | 23,214 | | - Asia (excluding Mainland China) | 15,001 | 16,381 | | - South America | 5,681 | 4,228 | | - Africa | 548 | 135 | | Domestic | 3,743 | 2,825 | | Total Revenue | 542,816 | 614,423 | Non-current Assets by Geographical Location (RMB thousands) | Geographical Location | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | China | 583,626 | 602,076 | | Thailand | 79,625 | 15,946 | | Indonesia | 18,525 | 15,234 | | United States | 563 | 1,446 | | Total | 682,339 | 634,702 | - All revenue from contracts with customers is recognized at a point in time[156][158] Other Income and Gains/Losses The Group's other income primarily consists of government grants and interest income, with government grants significantly increasing, while net other gains and losses substantially decreased due to reduced exchange gains Other Income (RMB thousands) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Government Grants | 4,079 | 1,404 | | Interest Income | 6,090 | 4,942 | | Sales of Materials, Molds, and Scraps | 1,999 | 1,636 | | Rental Income | 415 | 464 | | Others | 164 | 316 | | Total | 12,747 | 8,762 | Net Other Gains and Losses (RMB thousands) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Exchange Gain | 4,478 | 8,808 | | Loss on Disposal of Property, Plant and Equipment | (369) | (104) | | Loss on Trade Receivables at Fair Value Through Other Comprehensive Income | (1,434) | – | | Others | (183) | (181) | | Total | 2,492 | 8,523 | - Government grants increased by 190.5% to RMB 4.1 million, primarily comprising various subsidies provided by Chinese government authorities[30][36][164][165] - Net exchange gain decreased by 49.2% to RMB 4.5 million due to exchange rate fluctuations[14][17][31][37] Finance Costs and Income Tax The Group's finance costs increased due to the cessation of interest capitalization, while income tax expense decreased due to lower profit before tax, though the effective tax rate rose Finance Costs (RMB thousands) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Interest on Borrowings | 6,295 | 6,893 | | Interest on Lease Liabilities | 1,788 | 1,206 | | Total Borrowing Costs | 8,083 | 8,099 | | Less: Amount Capitalized | – | (2,538) | | Total | 8,083 | 5,561 | - The increase in finance costs was primarily due to the cessation of interest capitalization after the completion of the Xiangjiang Smart Factory construction[42][47][172] Income Tax Expense (RMB thousands) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Current Tax | 6,088 | 9,582 | | Over-provision in Prior Years | (1,944) | – | | Deferred Tax | 1,293 | 806 | | Total | 5,437 | 10,388 | - The decrease in income tax expense was mainly due to lower profit before tax during the reporting period, with the effective tax rate increasing from 14.6% in H1 2024 to 17.7% in H1 2025[43][48] - Chinese subsidiaries are subject to a 25% tax rate, with high-tech enterprises enjoying a 15% preferential tax rate; Hong Kong entities are subject to a two-tiered profits tax system, and US subsidiaries are subject to federal 21% and state income tax rates of up to 8.84%[175][176][177][179][180] Profit for the Period and EPS The Group's profit for the period significantly decreased, leading to a corresponding reduction in basic and diluted earnings per share, with no interim dividend declared for the current period Composition of Profit for the Period (RMB thousands) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Total Depreciation and Amortization | 41,789 | 32,279 | | Capitalized in Inventories | (21,238) | (19,446) | | Capitalized in Construction in Progress | – | (308) | | Listing Expenses | 1,881 | – | | Write-down of Inventories Reversed | (357) | (2,964) | | Cost of Inventories Recognized as Expense | 435,249 | 477,013 | Earnings Per Share (RMB) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit for the Period Attributable to Owners of the Company (RMB thousands) | 25,313 | 60,539 | | Weighted Average Number of Ordinary Shares (thousand shares) | 206,921 | 204,660 | | Basic and Diluted Earnings Per Share (RMB) | 0.12 | 0.30 | - No interim dividend was declared for the current period[119][184][185] Assets and Liabilities Details This section details changes in the Group's property, plant and equipment, right-of-use assets, inventories, trade receivables, prepayments and other receivables, trade and bills payables, other payables and accrued expenses, and borrowings - In H1 2025, the Group purchased property, plant and equipment amounting to RMB 87,577 thousand and renewed or entered into multiple lease agreements with terms of 1-3 years[189][190][191] Composition of Inventories (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Raw Materials | 90,207 | 75,195 | | Work in Progress | 119,300 | 74,869 | | Finished Goods | 74,311 | 64,942 | | Goods in Transit | 16,426 | 27,308 | | Less: Provision | (34,600) | (34,957) | | Total | 265,644 | 207,357 | - The aging of trade receivables is primarily within 1 year, with normal credit terms ranging from 30 to 135 days; as of June 30, 2025, the total overdue amount was RMB 24,807 thousand[197][198] - Trade receivables at fair value through other comprehensive income increased to RMB 9,218 thousand, all due within 1 year[201][202] Aging Analysis of Trade and Bills Payables (RMB thousands) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 1 year | 246,916 | 262,081 | | 1-2 years | 678 | 104 | | 2-3 years | 195 | 251 | | Over 3 years | 1,689 | 2,021 | | Total Trade Payables | 249,478 | 264,457 | | Bills Payable | 24,823 | 28,017 | | Total | 274,301 | 292,474 | - In H1 2025, the Group obtained new bank loans of RMB 382,273 thousand and repaid borrowings of RMB 315,335 thousand, with new loan interest rates ranging from 2.55% to 5.00%[212][214] Share Capital and Commitments The company's share capital increased due to the issuance of H-shares upon listing, and contracted but unprovided capital expenditures are disclosed Changes in Share Capital (RMB thousands) | Item | Number of Shares | Share Capital | | :--- | :--- | :--- | | January 1, 2025 | 204,659,509 | 204,660 | | Shares Issued After Listing | 68,220,000 | 68,220 | | June 30, 2025 | 272,879,509 | 272,880 | - Upon listing on June 25, 2025, the company issued 68,220,000 H-shares with a par value of RMB 1 per share, generating total proceeds of approximately HKD 195,109,000 (approximately RMB 178,092,000)[216][217] Capital Commitments (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Contracted but not provided for capital expenditure - Property, plant and equipment | 48,566 | 20,224 | Fair Value Measurements of Financial Instruments The Group's financial assets are measured at fair value, with trade receivables at fair value through other comprehensive income classified as Level 3 fair value measurements, using discounted cash flow with risk-adjusted discount rates and cash flows as key inputs Financial Assets Measured at Fair Value (RMB thousands) | Financial Asset | June 30, 2025 | December 31, 2024 | Fair Value Hierarchy | Valuation Techniques and Key Inputs | Significant Unobservable Inputs | | :--- | :--- | :--- | :--- | :--- | :--- | | Trade Receivables at Fair Value Through Other Comprehensive Income | 9,218 | 2,145 | Level 3 | Discounted cash flow with risk-adjusted discount rates and cash flows | Discount rate | Reconciliation of Level 3 Fair Value Measurements (RMB thousands) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | At January 1 | 2,145 | 15,750 | | Additions | 171,387 | 171,674 | | Settlements | (162,846) | (173,275) | | Fair Value Changes Through Other Comprehensive Income | (1,468) | 309 | | At June 30 | 9,218 | 14,458 | - Changes in unobservable inputs would not significantly alter the fair value of the relevant financial instruments[224] Related Party Transactions This section discloses the Group's significant related party transactions during the reporting period, primarily including lease liabilities and interest with Mr. Pan Yun, and key management personnel compensation Related Party Lease Liabilities and Interest (RMB thousands) | Related Party Name | Lease Liabilities (June 30, 2025) | Lease Liabilities (December 31, 2024) | Lease Liabilities Interest (H1 2025) | Lease Liabilities Interest (H1 2024) | | :--- | :--- | :--- | :--- | :--- | | Mr. Pan Yun | 226 | 446 | 7 | 20 | Key Management Personnel Remuneration (RMB thousands) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Salaries, Bonuses, and Other Allowances | 2,482 | 3,051 | | Contributions to Retirement Benefit Plans | 24 | 18 | | Total | 2,506 | 3,069 | - The remuneration of Directors and Supervisors is determined by the Remuneration Committee based on individual performance and market trends[231]