同方泰德(01206) - 2025 - 中期财报

Company Information Provides essential corporate details including board members, committees, key contacts, and financial advisors Board of Directors Lists the executive, non-executive, and independent non-executive directors of the company - Executive Directors include Mr. Zhao Xiaobo and Mr. Qin Bing. Non-executive Directors include Mr. Li Chengfu (Chairman), Mr. Zeng Xuejie, and Ms. Zhang Yanhua. Independent Non-executive Directors include Mr. Xie Youwen, Ms. Lu Yao, and Mr. Li Xuejin (appointed on June 17, 2025), with Mr. Fan Renda retiring on the same date[5] Board Committees Details the composition and changes in chairpersons for the Audit, Nomination, Remuneration, and Risk Management Committees - The Audit Committee is chaired by Ms. Lu Yao, with Mr. Li Xuejin appointed as a member on June 17, 2025, and Mr. Fan Renda retiring[5] - The Nomination Committee is chaired by Mr. Xie Youwen, with Ms. Lu Yao appointed as a member on June 17, 2025, and Mr. Fan Renda retiring[5] - Following Mr. Fan Renda's retirement, Mr. Li Xuejin was appointed as Chairman of the Remuneration Committee on June 17, 2025[5] - Following Mr. Fan Renda's retirement, Mr. Li Chengfu was appointed as Chairman of the Risk Management Committee, with Mr. Li Xuejin appointed as a member on June 17, 2025[5] Joint Company Secretaries Discloses changes in the company's joint company secretaries - Mr. Leung Lok Wai is a Joint Company Secretary, Ms. Chan Wan Mei resigned on May 2, 2025, and Ms. Chan Lai Yin was appointed on July 4, 2025[5] Authorized Representatives Lists the company's authorized representatives - Mr. Zhao Xiaobo and Mr. Li Chengfu are the authorized representatives[6] Registered Office and Headquarters Provides the company's registered office and headquarters address in Singapore - Both the registered office and headquarters are located at 66 Tannery Lane 04-10/A Sindo Industrial Building Singapore 347805[6] Principal Place of Business in Hong Kong Provides the company's principal place of business in Hong Kong - The principal place of business in Hong Kong is located at 17/F, Tower 2, Silvercord, 30 Canton Road, Tsim Sha Tsui, Hong Kong[7] Legal Advisers and Auditor Lists the company's Hong Kong legal advisers and auditor - The Hong Kong legal adviser is Morgan, Lewis & Bockius, and the auditor is KPMG[7] Share Registrars Provides information on the company's share registrars in Singapore and Hong Kong - The principal share registrar in Singapore is Tricor Barbinder Share Registration Services, and the Hong Kong share registrar is Tricor Investor Services Limited[7] Company Website Provides the company's official website address - The company's website is www.technovator.com.sg[7](index=7&type=chunk) Principal Bankers Lists the company's principal bankers - Principal bankers include Agricultural Bank of China, Bank of Beijing, Bank of China, China CITIC Bank, China Construction Bank, China Merchants Bank, DBS Bank, Industrial and Commercial Bank of China, Standard Chartered Bank, and The Hongkong and Shanghai Banking Corporation Limited[7] Investor Relations Contact Information Provides contact information for the company's investor relations - Investor relations contact numbers are +852 2736 8180 (Hong Kong) and +65 6841 1788 (Singapore), with email at info@technovator.com.sg[7] Management Discussion and Analysis Provides an overview of the company's operational and financial performance, strategic initiatives, and future outlook Overview The company benefited from national "dual carbon" strategy and smart city construction, achieving significant revenue growth and reduced losses in H1 2025 - Benefiting from the 'dual carbon' strategy and smart city construction, target market demand increased[8] Key Financial Indicators for H1 2025 | Indicator | H1 2025 (RMB millions) | Y-o-Y Growth | | :--- | :--- | :--- | | Revenue | 665.5 | 29.8% | | Loss | 7.7 | Significantly reduced | - Revenue growth was primarily due to significant progress in multiple smart energy projects, which have higher gross profit margins, driving overall gross profit improvement[8] - The company will continue to focus on technological innovation to build competitive advantages and consolidate its industry-leading position[8] Business Review The company achieved significant progress across smart transportation, smart building & campus, and smart energy sectors, consolidating market leadership and expanding strategic partnerships - All business segments are driven by technological innovation, continuously contributing to urban intelligence and low-carbon transformation[9][11][13] Smart Transportation Segment The smart transportation segment expanded in key regional markets, securing multiple rail transit integrated monitoring system projects and enhancing operational efficiency through proprietary platforms - Awarded the integrated monitoring system project for Phase I of Changchun Urban Rail Transit Airport Line, enhancing regional transportation convenience[9] - Successfully signed the integrated monitoring system project for Chongqing Rail Transit Line 27 post-construction, building a 'center-station' two-level smart control system based on the Kunlun Digital Platform to promote comprehensive intelligence for Chongqing Metro[9] - Signed integrated monitoring system projects for Wuhan Rail Transit Xingang Line Phase I and West Extension, which will deeply integrate the network information cloud platform to create a green and smart rail transit demonstration project[10] Smart Building and Campus Segment The smart building and campus segment achieved breakthroughs in digital cultural tourism, smart cities, and financial technology, securing projects for high-end hotels, smart parks, and data centers - Successfully signed the digital construction project for 'Wanli • Nuolan Hotel,' a high-end resort brand under Shougang Group, creating an intelligent analysis, data-driven, and IoT-enabled hotel service ecosystem[11] - Undertook the intelligent engineering project for Shenzhen Universiade Smart Park, building four intelligent system frameworks: smart management hub, immersive experience space, smart service network, and intelligent infrastructure[11] - Awarded the Bank of Communications Gui'an Data Center project, constructing a DCIM and smart campus operation and maintenance management platform, energy consumption management and carbon emission detection system, and AI management system, supporting financial security networks and green computing power industry development[12] Smart Energy Segment The smart energy segment strengthened its strategic layout in energy performance contracting and CNNC Group internal business, successfully implementing benchmark EMC projects and expanding into non-nuclear clean energy management - Signed the comprehensive energy efficiency improvement project for Tianhe Thermal Power Plant and its heating area, validating the technical practice of reducing return water temperature in heating networks to promote waste heat recovery from power plant exhaust steam, which has demonstrative significance[13] - Expanded strategic cooperation with CNNC Group, newly signing the research and development project for Roots blower vacuum extraction technology for Fuqing Nuclear Power Unit condensers, and undertaking the environmental monitoring system project for Xudapu Nuclear Power Plant, deepening cooperation in nuclear power energy saving[14] Outlook The company will focus on a "digital intelligence + green low-carbon" dual-driven strategy, leveraging smart city construction to build a dual-core business in energy utilization and technology services - Focusing on a 'digital intelligence + green low-carbon' dual-driven strategy, leveraging new smart city construction as a fulcrum[15] - Building a dual-core business layout in energy utilization and technology services[15] - Strengthening overall synergy within CNNC Group and industry-academia-research integration with Tsinghua University, enhancing investment in technological innovation[15] - Systematically building digital support systems such as IoT, big data, and AI applications, creating an innovative technology matrix around 'energy saving and carbon reduction + new energy utilization,' and accelerating the cultivation of new quality productive forces[15] Financial Review In H1 2025, revenue grew by 29.8% to RMB 665.5 million, driven by smart energy, with gross profit margin significantly improving to 18.2% and net loss narrowing to RMB 7.7 million - Policy dividends and capital investment drive the integration of 'green' and 'intelligent' market demand, expanding industry growth space[16] - The company continues to deepen its business expansion strategy, focusing on improving project conversion efficiency, optimizing resource allocation, strengthening process control, and ensuring high-quality project implementation[16] Revenue In H1 2025, net revenue reached RMB 665.5 million, a 29.8% year-on-year increase, driven by deepened business expansion and accelerated project implementation Revenue Overview | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Y-o-Y Growth | | :--- | :--- | :--- | :--- | | Net Revenue | 665.5 | 512.6 | 29.8% | Revenue by Business Segment Smart energy revenue significantly grew by 63.6% to RMB 325.8 million, becoming the primary growth driver and accounting for 49% of total revenue Revenue by Business Segment (For the six months ended June 30) | Business Segment | 2025 Revenue (RMB thousands) | 2025 % of Total | 2024 Revenue (RMB thousands) | 2024 % of Total | Y-o-Y Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Smart Transportation | 93,397 | 14% | 93,261 | 18% | 0.1% | | Smart Building and Campus | 246,297 | 37% | 220,216 | 43% | 11.8% | | Smart Energy | 325,779 | 49% | 199,095 | 39% | 63.6% | | Total | 665,473 | 100% | 512,572 | 100% | 29.8% | - Smart Transportation segment revenue remained largely flat, primarily due to settlement revenue from several major projects (e.g., Changchun Rail Transit Line 7, Ningbo Rail Transit Line 6)[19] - Smart Building and Campus segment revenue increased by 11.8%, driven by the low-carbon transformation of the construction industry and 'dual carbon' policies, with new projects like Shougang Group's high-end resort hotel digitalization contributing to revenue[20] - Smart Energy segment revenue significantly increased by 63.6%, primarily due to strategic deployment and efficient project implementation, such as Tianfu Energy Tianhe Thermal Power Plant heating project and Daqing Smart Heating project[21] Cost of Sales Cost of sales increased by 19.3% to approximately RMB 544.4 million in H1 2025, consistent with revenue growth Cost of Sales Overview | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Y-o-Y Increase | | :--- | :--- | :--- | :--- | | Cost of Sales | 544.4 | 456.5 | 19.3% | Gross Profit Gross profit surged by 115.9% to RMB 121.1 million in H1 2025, with gross profit margin improving by 7.3 percentage points to 18.2%, mainly due to higher margins from energy performance contracting projects Gross Profit Overview | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Y-o-Y Increase | | :--- | :--- | :--- | :--- | | Gross Profit | 121.1 | 56.1 | 115.9% | | Gross Profit Margin | 18.2% | 10.9% | Increased by 7.3 percentage points | - Gross profit margin growth was primarily attributable to the higher gross profit margins of energy performance contracting projects[23] Other Income Other income decreased by 17.4% to approximately RMB 10.9 million in H1 2025, mainly due to reduced government subsidies Other Income Overview | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Y-o-Y Decrease | | :--- | :--- | :--- | :--- | | Other Income | 10.9 | 13.2 | 17.4% | - The decrease in other income was mainly due to a reduction in government subsidies compared to the same period last year[24] Selling and Distribution Expenses Selling and distribution expenses decreased by 37.4% to approximately RMB 28.0 million in H1 2025, representing a 4.5 percentage point reduction in revenue proportion due to optimized personnel structure Selling and Distribution Expenses Overview | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Y-o-Y Decrease | | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 28.0 | 44.7 | 37.4% | | % of Revenue | 4.2% | 8.7% | Decreased by 4.5 percentage points | - The reduction in expenses was primarily achieved through personnel structure optimization measures, effectively lowering sales staff costs[25] Administrative and Other Operating Expenses Administrative and other operating expenses increased by 52.5% to approximately RMB 115.1 million in H1 2025, mainly due to increased R&D investment and intangible asset amortization Administrative and Other Operating Expenses Overview | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Y-o-Y Increase | | :--- | :--- | :--- | :--- | | Administrative and Other Operating Expenses | 115.1 | 75.4 | 52.5% | - The significant increase in expenses was mainly due to higher R&D expenses and amortization of intangible assets, reflecting the Group's strengthened investment in technological innovation[26] Impairment Losses on Trade and Other Receivables and Contract Assets Impairment losses decreased by 57.7% to approximately RMB 9.0 million in H1 2025, as the Group actively pursued collection of receivables, especially long-aged ones Impairment Losses Overview | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Y-o-Y Decrease | | :--- | :--- | :--- | :--- | | Impairment Losses | 9.0 | 21.3 | 57.7% | - The decrease in impairment losses was mainly due to the Group's vigorous efforts in recovering receivables, especially long-aged ones[27] Finance Costs Finance costs increased by 25.0% to approximately RMB 5.0 million in H1 2025, primarily due to increased financing to optimize liquidity and support business growth Finance Costs Overview | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Y-o-Y Increase | | :--- | :--- | :--- | :--- | | Finance Costs | 5.0 | 4.0 | 25.0% | - The increase in finance costs was mainly due to the Group appropriately raising its financing quota to optimize liquidity and match business growth needs[28] Income Tax Income tax increased from RMB -7.4 million in H1 2024 to RMB -3.1 million in H1 2025, primarily due to a reduction in the loss for the period Income Tax Overview | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Change | | :--- | :--- | :--- | :--- | | Income Tax | -3.1 | -7.4 | Increased by 4.3 | - The change in income tax was primarily due to the reduction in the loss for the first half of the year[29] Loss for the Period The Group's loss for H1 2025 significantly narrowed to approximately RMB 7.7 million, with net margin improving from -14.0% to -1.2%, driven by revenue growth and increased gross profit Loss for the Period Overview | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Loss Reduction | | :--- | :--- | :--- | :--- | | Loss for the Period | 7.7 | 71.9 | 64.2 | | Net Margin | -1.2% | -14.0% | Improved by 12.8 percentage points | - The reduction in loss was primarily due to increased revenue and gross profit[30] Loss Per Share Basic and diluted loss per share from continuing operations for H1 2025 was RMB 0.0083, a significant reduction from RMB 0.0889 in the prior year Loss Per Share Overview | Indicator | H1 2025 (RMB) | H1 2024 (RMB) | Loss Reduction | | :--- | :--- | :--- | :--- | | Basic and Diluted Loss Per Share | 0.0083 | 0.0889 | 0.0806 | Working Capital and Financial Resources As of June 30, 2025, the Group improved operational efficiency with reduced inventory, trade receivables, and trade payables turnover days, while maintaining a 5.8% gearing ratio Working Capital and Financial Resources Overview | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | :--- | | Inventories | 1,365,083 | 1,363,757 | 1,355,869 | | Trade and Other Receivables | 1,736,219 | 1,801,587 | 1,871,205 | | Trade and Other Payables | 2,144,299 | 2,400,263 | 1,977,618 | | Average Inventory Turnover Days | 374 | 264 | 470 | | Average Trade Receivables Turnover Days | 457 | 329 | 570 | | Average Trade Payables Turnover Days | 672 | 437 | 735 | - Average inventory turnover days decreased to approximately 374 days compared to the same period last year, reflecting the Group's strengthened full-lifecycle project management and accelerated settlement progress[32] - Trade and other receivables decreased by 3.6%, and average trade receivables turnover days decreased from 570 days to 457 days, primarily through vigorous efforts in recovering long-aged receivables[33] - Trade and other payables decreased by 10.7%, and average trade payables turnover days decreased from 735 days to 672 days, improving capital turnover efficiency by optimizing payment processes and enhancing supplier management systems[34] Cash and Liabilities Situation | Indicator | June 30, 2025 (RMB millions) | December 31, 2024 (RMB millions) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 101.8 | 344.7 | | Net Cash | -204.7 | -2.9 | | Gearing Ratio | 5.8% | 6.2% | - Liabilities include short-term bank loans of RMB 265.3 million (average annual interest rate of 3.2%), long-term bank loans of RMB 7.5 million (annual interest rate of 3.8%), and secured borrowings of RMB 33.6 million (annual interest rate of 4.7%)[35] Pledge of Assets As of June 30, 2025, the Group had no assets pledged - As of June 30, 2025, the Group had no assets pledged[36] Foreign Exchange Fluctuation Risk The Group primarily faces currency risk from receivables, payables, and cash balances denominated in SGD, CAD, USD, and HKD, but directors believe the impact on financial performance is not significant - Primarily exposed to foreign exchange risk from Singapore Dollars, Canadian Dollars, US Dollars, and Hong Kong Dollars[37] - As most of the business is transacted in RMB in China, the Directors believe that foreign exchange risk has no significant impact on financial performance[37] - No hedging arrangements are currently in place, but foreign exchange movements will be closely monitored, and the necessity will be assessed[37] Contingent Liabilities As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[38] Off-Balance Sheet Arrangements The Group has not established special purpose entities, entered into unrecorded derivative contracts, or retained interests in transferred assets - The Group has not established any special purpose entities to provide financing, liquidity, market risk, or credit support[39] - The Group has not entered into any derivative contracts not reflected in the financial statements[39] - The Group also holds no retained or contingent interests in assets transferred to unconsolidated entities to provide credit, liquidity, or market risk support services[39] Employees, Training and Development As of June 30, 2025, the Group had 662 employees, with total staff costs increasing to RMB 88.0 million, and provides regular training to enhance professional capabilities Employee and Cost Overview | Indicator | June 30, 2025 | June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Total Employees | 662 persons | 626 persons | Increased by 36 persons | | Total Staff Costs (RMB millions) | 88.0 | 80.0 | Increased by 8.0 | - The company determines remuneration based on employee performance, experience, and prevailing industry practices, and regularly reviews all remuneration policies and compensation packages[41] - Regular training is provided to employees, covering products, technological developments, and industry market conditions, with frontline sales personnel trained on new products[41] Material Acquisitions and Disposals For the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries or associates - For the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries or associates[42] Material Investments For the six months ended June 30, 2025, the Group had no material investments, nor did the Board authorize any plans for other significant investments or capital asset additions - For the six months ended June 30, 2025, the Group had no material investments[43] - The Board also has no plans to authorize other material investments or additions of capital assets[43] Corporate Governance and Other Information Details the company's adherence to corporate governance codes, review of financial statements, and information on directors' and major shareholders' interests Corporate Governance Code The company complied with all code provisions of the Listing Rules' Corporate Governance Code for H1 2025, with minor exceptions regarding director attendance at the AGM - The company has complied with all code provisions set out in Appendix 14 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the 'Listing Rules') Corporate Governance Code[44] - The Chairman of the Board and the chairmen or other members of the Audit Committee, Nomination Committee, and Remuneration Committee were unable to attend the Annual General Meeting held on June 17, 2025, due to other business engagements[44] Standard Code for Securities Transactions by Directors of Listed Issuers The company adopted the Standard Code for securities transactions by directors, and all directors confirmed compliance for H1 2025 - The company has adopted the Standard Code as set out in Appendix C3 of the Listing Rules as the code of conduct for directors' securities transactions[45] - Following specific enquiries, all Directors confirmed that they have complied with the required standards set out in the Standard Code throughout the period[45] Review of Interim Financial Statements Directors confirmed compliance with Listing Rules for financial disclosures, the Audit Committee reviewed interim results, and KPMG performed an independent review of the interim financial information - The Directors confirmed that the financial information disclosure in this interim report complies with the requirements of Appendix D2 of the Listing Rules[46] - The Audit Committee has discussed internal control and financial reporting matters and reviewed the interim results and unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025[46] - The external auditor, KPMG, has reviewed the interim financial information in accordance with Hong Kong Standard on Review Engagements 2410[46] Purchase, Sale or Redemption of the Company's Listed Securities For the six months ended June 30, 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any of its listed securities, and the number of treasury shares was zero - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[47] - As of June 30, 2025, the number of treasury shares held by the company was zero[48] Dividends The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025[49] Changes in Directors' Information Discloses changes in Board members since the 2024 annual report, including retirements, appointments, and committee role changes, along with directors' and chief executives' interests in shares - Mr. Fan Renda retired as an Independent Non-executive Director and from various committee positions on June 17, 2025[51] - Mr. Li Xuejin was appointed as an Independent Non-executive Director, a member of the Audit Committee, Chairman of the Remuneration Committee, and a member of the Risk Management Committee on June 17, 2025[51] - Ms. Lu Yao was appointed as a member of the Nomination Committee, and Mr. Li Chengfu was appointed as Chairman of the Risk Management Committee, both effective June 17, 2025[51] Directors' and Chief Executives' Interests in the Company (As of June 30, 2025) | Name of Director/Chief Executive | Capacity/Nature of Interest | Number of Shares in which Interests are Held | Approximate % of Interest in the Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Zhao Xiaobo | Beneficial Owner | 8,728,000 | 1.12% | - For the six months ended June 30, 2025, neither the company, its holding company, nor any of its subsidiaries entered into any arrangements that would enable directors and chief executives of the company to acquire interests or short positions in the shares, underlying shares, or debentures of the company or its associated corporations[52] Major Shareholders' Interests and Short Positions in Shares and Underlying Shares As of June 30, 2025, Tsinghua Tongfang Co., Ltd. and its wholly-owned subsidiary, Resuccess Investments Limited, were major shareholders, collectively holding 36.60% of the company's issued share capital Major Shareholders' Interests in the Company (As of June 30, 2025) | Name of Shareholder | Capacity/Nature of Interest | Number of Shares in which Interests are Held | Approximate % of Interest in the Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Tsinghua Tongfang Co., Ltd. | Beneficial Owner | 92,000,000 | 11.76% | | Tsinghua Tongfang Co., Ltd. | Interest of Controlled Corporation (1) | 194,330,142 | 24.84% | | Resuccess Investments Limited | Beneficial Owner | 194,330,142 | 24.84% | - Tsinghua Tongfang Co., Ltd. is the sole shareholder of Resuccess Investments Limited and is therefore deemed to be interested in all shares held by Resuccess Investments Limited[53] Share Award Scheme The company adopted a share award scheme on December 4, 2015, with a maximum of 77,772,218 shares available for awards as of June 30, 2025, but no awards were granted during the period - The company adopted a share award scheme on December 4, 2015[55] - As of June 30, 2025, the maximum number of shares that may be granted under the share award scheme was 77,772,218 shares[55] - As of June 30, 2025, there were no unvested outstanding awarded shares under the share award scheme, and no share awards have been granted by the company under the scheme since its adoption date[55] Independent Review Report KPMG reviewed the interim financial report in accordance with HKSAE 2410, finding no matters suggesting non-compliance with HKAS 34, and did not express an audit opinion - KPMG has reviewed the interim financial report contained on pages 16 to 32[56] - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410 issued by the Hong Kong Institute of Certified Public Accountants, with a scope narrower than an audit, and no audit opinion is expressed[57] - Based on the review, nothing has come to our attention that causes us to believe that the interim financial report is not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34[58] Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, the company reported revenue of RMB 665,473 thousand, gross profit of RMB 121,080 thousand, and a significantly narrowed loss for the period of RMB 7,663 thousand, with basic and diluted loss per share of RMB 0.0083 Key Data from Consolidated Statement of Profit or Loss (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 665,473 | 512,572 | | Cost of sales | (544,393) | (456,487) | | Gross profit | 121,080 | 56,085 | | Other income | 10,879 | 13,234 | | Other gains/(losses) – net | 14,354 | (2,970) | | Selling and distribution costs | (28,008) | (44,730) | | Administrative and other operating expenses | (115,055) | (75,444) | | Impairment losses on trade and other receivables and contract assets | (8,975) | (21,269) | | Operating loss | (5,725) | (75,247) | | Finance costs | (5,029) | (4,042) | | Loss before tax | (10,754) | (79,289) | | Income tax | 3,091 | 7,380 | | Loss for the period | (7,663) | (71,909) | | Loss attributable to equity holders of the Company | (6,492) | (69,557) | | Loss attributable to non-controlling interests | (1,171) | (2,352) | | Basic and diluted loss per share (RMB) | (0.0083) | (0.0889) | Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, the company reported a loss for the period of RMB 7,663 thousand and other comprehensive income of RMB (90) thousand from exchange differences, resulting in a total comprehensive loss of RMB (7,753) thousand Key Data from Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Loss for the period | (7,663) | (71,909) | | Exchange differences on translation of financial statements of overseas subsidiaries | (90) | 82 | | Total comprehensive loss for the period | (7,753) | (71,827) | | Attributable to equity holders of the Company | (6,582) | (69,475) | | Attributable to non-controlling interests | (1,171) | (2,352) | Consolidated Statement of Financial Position As of June 30, 2025, the company's total non-current assets were RMB 1,156,627 thousand, net current assets were RMB 1,573,020 thousand, and total equity was RMB 2,625,213 thousand, with RMB 2,607,178 thousand attributable to equity holders Key Data from Consolidated Statement of Financial Position (As of June 30) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Non-current assets | | | | Property, plant and equipment | 56,732 | 60,709 | | Intangible assets | 538,377 | 576,200 | | Financial assets measured at amortised cost | 500,329 | 376,039 | | Deferred tax assets | 61,189 | 58,496 | | Total non-current assets | 1,156,627 | 1,071,444 | | Current assets | | | | Inventories | 1,365,083 | 1,363,757 | | Contract assets | 937,683 | 987,448 | | Trade and other receivables | 1,595,172 | 1,687,280 | | Prepayments | 141,047 | 114,307 | | Bank balances and cash | 101,761 | 344,686 | | Total current assets | 4,140,746 | 4,497,478 | | Current liabilities | | | | Trade and other payables | 2,144,299 | 2,400,263 | | Contract liabilities | 126,999 | 148,360 | | Loans and borrowings | 269,438 | 308,982 | | Lease liabilities | 927 | 921 | | Current tax payable | 26,063 | 28,869 | | Total current liabilities | 2,567,726 | 2,887,395 | | Net current assets | 1,573,020 | 1,610,083 | | Total assets less current liabilities | 2,729,647 | 2,681,527 | | Non-current liabilities | | | | Deferred tax liabilities | 3,820 | 3,383 | | Deferred income | 6,406 | 6,580 | | Loans and borrowings | 36,980 | 38,598 | | Lease liabilities | 57,228 | – | | Total non-current liabilities | 104,434 | 48,561 | | Net assets | 2,625,213 | 2,632,966 | | Total equity | 2,625,213 | 2,632,966 | Consolidated Statement of Changes in Equity For the six months ended June 30, 2025, total equity attributable to equity holders decreased from RMB 2,613,760 thousand to RMB 2,607,178 thousand, primarily due to the loss for the period and a decrease in exchange reserves Key Data from Consolidated Statement of Changes in Equity (For the six months ended June 30) | Indicator | January 1, 2025 (RMB thousands) | June 30, 2025 (RMB thousands) | January 1, 2024 (RMB thousands) | June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Total equity attributable to equity holders of the Company (Beginning of period) | 2,613,760 | - | 2,880,190 | - | | Loss for the period | (6,492) | (6,492) | (69,557) | (69,557) | | Other comprehensive income (Exchange differences) | - | (90) | - | 82 | | Appropriation to safety production fund | - | 392 | - | 1,028 | | Utilisation of safety production fund | - | (392) | - | (765) | | Total equity attributable to equity holders of the Company (End of period) | - | 2,607,178 | - | 2,810,715 | | Non-controlling interests (End of period) | - | 18,035 | - | 15,991 | | Total equity (End of period) | - | 2,625,213 | - | 2,826,706 | Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2025, net cash used in operating activities was RMB (223,169) thousand, net cash used in investing activities was RMB (6,062) thousand, and net cash used in financing activities was RMB (13,302) thousand, resulting in a net decrease in cash and cash equivalents of RMB (242,533) thousand Key Data from Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net cash used in operating activities | (223,169) | (278,017) | | Net cash used in investing activities | (6,062) | (24,692) | | Net cash (used in)/generated from financing activities | (13,302) | 56,922 | | Net decrease in cash and cash equivalents | (242,533) | (245,787) | | Cash and cash equivalents at January 1 | 339,697 | 354,783 | | Effect of foreign exchange rate changes | (124) | 232 | | Cash and cash equivalents at June 30 | 97,040 | 109,228 | Notes to the Unaudited Interim Financial Report Provides explanatory notes to the unaudited interim financial report, covering preparation basis, accounting policy changes, and detailed financial breakdowns Basis of Preparation The interim financial report is prepared in accordance with HKAS 34 and Listing Rules, authorized for issue on August 27, 2025, and reviewed by KPMG - The interim financial report has been prepared in accordance with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 'Interim Financial Reporting'[67] - The report was authorized for issue on August 27, 2025, and has been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410[67][68] - The report contains condensed consolidated financial statements and selected explanatory notes, not including all information required for a complete set of financial statements[67] Changes in Accounting Policies The Group applied amendments to HKAS 21 regarding foreign exchange rate changes, but these had no significant impact on the interim report due to the absence of non-convertible foreign currency transactions - The Group has applied the amendments to Hong Kong Accounting Standard 21 'The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability'[69] - As the Group did not enter into any foreign currency transactions where one currency is not exchangeable into another currency, these amendments had no significant impact on this interim report[69] - The Group has not applied any new standards or interpretations that are not yet effective for the current accounting period[70] Revenue The Group primarily engages in integrated smart energy-saving services, with total revenue of RMB 665,473 thousand in H1 2025, largely contributed by the smart energy business - The Group is principally engaged in integrated smart energy-saving services for cities, providing smart energy management products, solutions, and comprehensive services throughout the customer's lifecycle[71] Disaggregation of Revenue from Contracts with Customers by Service Type (For the six months ended June 30) | Service Type | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Smart Transportation business revenue | 93,397 | 93,261 | | Smart Building and Campus business revenue | 246,297 | 220,216 | | Smart Energy business revenue | 325,779 | 199,095 | | Total | 665,473 | 512,572 | Segment Reporting The Group manages its business through three reportable segments: Smart Transportation, Smart Building & Campus, and Smart Energy, with the Smart Energy segment showing significant growth in revenue and profit in H1 2025 - The Group identifies three reportable segments: Smart Transportation, Smart Building and Campus, and Smart Energy, with no operating segments aggregated[73] - The Smart Transportation business provides full-lifecycle integrated solutions for patented software and hardware products and systems in rail transit[73] - The Smart Building and Campus business provides intelligent integrated solutions and energy efficiency management services, covering energy consumption monitoring, energy-saving consulting, system integration, and product supply[73] - The Smart Energy business possesses a series of leading technologies, including regional energy planning, integrated utilization of industrial waste heat recovery, heat pump technology, independent temperature and humidity control technology, and variable air volume technology, and holds core technologies in urban heating networks[73] Revenue and (Loss)/Profit by Reportable Segment (For the six months ended June 30) | Segment | 2025 External Customer Revenue (RMB thousands) | 2024 External Customer Revenue (RMB thousands) | 2025 Reportable Segment (Loss)/Profit (RMB thousands) | 2024 Reportable Segment (Loss)/Profit (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Smart Transportation business | 93,397 | 93,261 | (5,819) | (14,156) | | Smart Building and Campus business | 246,297 | 220,216 | 687 | 3,312 | | Smart Energy business | 325,779 | 199,095 | 66,927 | 5,408 | | Total | 665,473 | 512,572 | 61,795 | (5,436) | - The Smart Energy business achieved significant profit growth in H1 2025, increasing from RMB 5,408 thousand in 2024 to RMB 66,927 thousand[75] - The Group does not have significant operations outside the People's Republic of China, and therefore no geographical segment information is presented[76] Loss Before Tax For the six months ended June 30, 2025, loss before tax significantly narrowed to RMB 10,754 thousand from RMB 79,289 thousand in the prior year, despite increased finance costs and a substantial rise in R&D expenses Components of Loss Before Tax (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Finance costs | 5,029 | 4,042 | | Research and development expenses | 43,401 | 12,028 | | Amortisation | 53,841 | 48,593 | | Depreciation (owned property, plant and equipment) | 6,080 | 13,660 | | Depreciation (right-of-use assets) | 977 | 1,267 | | Interest income | (10,474) | (11,487) | - Research and development expenses significantly increased from RMB 12,028 thousand in 2024 to RMB 43,401 thousand in 2025, indicating a substantial increase in the Group's investment in technological innovation[77] Income Tax For the six months ended June 30, 2025, income tax decreased to RMB (3,091) thousand from RMB (7,380) thousand in the prior year, mainly due to a reduced loss for the period, with some high-tech subsidiaries enjoying a 15% preferential tax rate Components of Income Tax (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current tax (provision for the year) | 81 | 43 | | Current tax (over-provision in prior years) | (916) | (4,989) | | Deferred tax | (2,256) | (2,434) | | Total | (3,091) | (7,380) | - The company is subject to Singapore corporate income tax at a rate of 17%, but no provision was made due to continuous tax losses during the period[78] - The Group's subsidiaries established in China are subject to China corporate income tax at a rate of 25%[78] - Tongfang Technovator International Technology (Beijing) Co., Ltd. and Tongfang Energy Saving Engineering Technology Co., Ltd. are recognized as high-tech enterprises and are eligible for a preferential tax rate of 15%[79] Loss Per Share For the six months ended June 30, 2025, basic and diluted loss per share was RMB 0.0083, calculated based on a loss attributable to equity holders of RMB 6,492,000 and a weighted average of 782,192,189 ordinary shares Loss Per Share Details (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Loss attributable to ordinary equity holders of the Company (RMB thousands) | 6,492 | 69,557 | | Weighted average number of ordinary shares in issue | 782,192,189 | 782,192,189 | | Basic and diluted loss per share (RMB) | (0.0083) | (0.0889) | - For the six months ended June 30, 2025 and 2024, there were no outstanding potentially dilutive ordinary shares[81] Property, Plant and Equipment For the six months ended June 30, 2025, the Group acquired property, plant, and equipment at a cost of RMB 3,373,000 Acquisition Cost of Property, Plant and Equipment (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Acquisition cost | 3,373 | 2,105 | Financial Assets Measured at Amortised Cost As of June 30, 2025, the balance of other financial assets primarily represents long-term trade receivables from engineering projects, repayable over 2 to 13 years - As of June 30, 2025, the balance of other financial assets primarily represents long-term trade receivables from certain engineering projects[83] - These long-term trade receivables are repayable in installments over a period of 2 to 13 years[83] Trade and Other Receivables As of June 30, 2025, total trade receivables and bills receivable (net of impairment allowance) amounted to RMB 1,536,902 thousand, with current amounts forming the largest proportion Ageing Analysis of Trade and Other Receivables (As of reporting date) | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Current | 1,373,486 | 1,548,031 | | Overdue within 1 month | 46,599 | 2,127 | | Overdue over 1 month but within 3 months | 15,771 | 1,179 | | Overdue over 3 months but within 12 months | 60,465 | 44,960 | | Overdue over 12 months | 40,581 | 21,135 | | Trade receivables and bills receivable, net of allowance for doubtful debts | 1,536,902 | 1,617,432 | | Other receivables | 58,270 | 69,848 | | Total | 1,595,172 | 1,687,280 | - The Group generally requires customers to settle progress payments and retention money in accordance with contract terms[84] Bank Balances and Cash As of June 30, 2025, total bank balances and cash amounted to RMB 101,761 thousand, including RMB 97,040 thousand in bank and cash on hand Bank Balances and Cash (As of reporting date) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Deposits with banks and other financial institutions | 4,721 | 4,989 | | Bank and cash on hand | 97,040 | 339,697 | | Bank balances and cash in the consolidated statement of financial position | 101,761 | 344,686 | | Restricted deposits | (4,721) | (4,989) | | Cash and cash equivalents in the consolidated statement of cash flows | 97,040 | 339,697 | Trade and Other Payables As of June 30, 2025, total trade payables and bills payable amounted to RMB 1,966,626 thousand, with amounts due within 3 months forming the largest proportion Ageing Analysis of Trade and Other Payables (As of reporting date) | Ageing (by invoice date) | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 3 months | 1,181,693 | 1,268,761 | | Over 3 months but within 6 months | 150,738 | 220,719 | | Over 6 months but within 12 months | 251,015 | 132,774 | | Over 12 months | 383,180 | 553,692 | | Total payables and bills payable | 1,966,626 | 2,175,946 | | Other payables and accrued expenses | 177,673 | 224,317 | | Total | 2,144,299 | 2,400,263 | Share Capital, Reserves and Dividends As of June 30, 2025, the company had 782,192,189 issued and fully paid ordinary shares with a share capital of RMB 1,189,968 thousand, and the Board did not recommend any interim dividend Share Capital Overview (As of reporting date) | Indicator | June 30, 2025 (Number of shares) | June 30, 2025 (RMB thousands) | December 31, 2024 (Number of shares) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Issued and fully paid ordinary shares | 782,192,189 | 1,189,968 | 782,192,189 | 1,189,968 | - Other reserves arise from transactions with equity holders (in their capacity as equity holders), including changes in capital reserve[88] - The company did not declare any interim dividends for the six months ended June 30, 2025 and 2024[89] - In accordance with relevant rules and regulations in China, the Group is required to transfer a certain amount to a special reserve for the safety production fund based on contract amounts[90] Fair Value Measurement of Financial Instruments As of June 30, 2025, and December 31, 2024, there were no significant differences between the carrying amounts and fair values of the Group's financial instruments accounted for at cost or amortized cost - As of June 30, 2025, and December 31, 2024, there were no significant differences between the carrying amounts and fair values of the Group's financial instruments accounted for at cost or amortized cost[91] Commitments As of June 30, 2025, the Group's unfulfilled contracted capital commitments amounted to RMB 191,238 thousand Unpaid Capital Commitments (As of reporting date) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Contracted | 191,238 | 196,380 | Significant Related Party Transactions The Group engages in various significant related party transactions with its controlling shareholder, Tsinghua Tongfang Co., Ltd. and its subsidiaries, and CNNC Group and its subsidiaries, including sales, purchases, services, and fund transfers - Related parties include the controlling shareholder, Tsinghua Tongfang Co., Ltd. and its subsidiaries, and subsidiaries of China National Nuclear Corporation ('CNNC Group')[93] Significant Related Party Transactions (For the six months ended June 30) | Type of Transaction | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Sales to Tongfang and its subsidiaries | 153,942 | 43,330 | | Purchases from Tongfang and its subsidiaries | 11,849 | 26,785 | | Receipt of sundry products and services from Tongfang and its subsidiaries | 6,882 | 6,838 | | Provision of sundry products and services to Tongfang and its subsidiaries | 4,425 | – | | Amounts transferred from Tongfang to the Group | 240,668 | 297,691 | | Amounts transferred from the Group to Tongfang | 196,792 | 220,704 | | Sales to CNNC Group and its subsidiaries | 10,501 | 12,067 | | Purchases from CNNC Group and its subsidiaries | 1,692 | 417 | - Tongfang authorized the Group to use certain trademarks in China at zero consideration[94] - The Group also conducts transactions with other Chinese state-owned enterprises, including sales of products and services, purchases of materials, and bank deposits and borrowings[95]