Financial Performance - In the first half of 2025, the Group achieved revenue of RMB283.7 million, representing a significant increase of 38% compared to the same period in 2024[13]. - For the six months ended June 30, 2025, the Group's total revenue was RMB303.1 million, representing an increase of RMB83.7 million, or 38.1%, compared to the same period in 2024[37]. - Revenue from the MLCC segment for the same period was RMB283.7 million, an increase of RMB78.1 million, or 38.0%, attributed to increased sales volume and selling prices[37]. - The aggregate gross profit margin for the six months ended June 30, 2025, was 21.8%, an increase of 9.4 percentage points compared to the same period in 2024[38]. - The gross profit margin for the six months ended June 30, 2025, was 21.8%, an increase of 9.4 percentage points compared to the same period in 2024[42]. - The gross profit margin of the MLCC segment was 16.5% for the six months ended June 30, 2025, up from 6.5% for the same period in 2024, driven by a higher proportion of high-end products[43][48]. - The company reported a loss for the period of RMB 33,800,000, compared to a loss of RMB 59,169,000 in the previous year, showing a narrowing of losses[171]. - Total comprehensive loss for the period was RMB 36,411,000, compared to RMB 58,817,000 in the prior year, demonstrating overall financial improvement[171]. - Loss before taxation decreased to RMB 32,244,000 from RMB 56,934,000, reflecting a reduction in operational losses[171]. - For the six months ended June 30, 2025, the loss attributable to owners of the Company was RMB 33,800,000, a decrease of 42.8% compared to RMB 59,169,000 for the same period in 2024[173]. Investment and Development - The Group's investment in research and development has focused on high-end products, including industrial and automotive-grade capacitors, to strengthen competitiveness[16]. - The Group has developed multiple series of niche products for special circuit applications to meet high-end customer needs[16]. - The Group plans to enhance core competitiveness through investments in new materials and processes, while expanding its product portfolio to include medium and large-sized high-capacitance products[93]. - The company has maintained a strong emphasis on R&D investments to achieve technological breakthroughs in small-sized high-capacity MLCC products, solidifying its leading position in the domestic market[96]. - Research and development costs increased by RMB1.3 million to RMB29.1 million for the six months ended June 30, 2025, reflecting a greater investment in R&D[47][52]. Market and Economic Conditions - The overall economic recovery has been hampered by geopolitical conflicts and high inflation, impacting the Group's segments[12]. - The MLCC market is expected to maintain a favorable long-term development trend, driven by demand in IoT, 5G communications, new energy vehicles, and AI servers[94]. - The MLCC industry is expected to gradually recover by 2025, driven by growth in IoT, 5G communications, new energy vehicles, and AI servers, despite facing challenges[96]. Operational Efficiency - Selling and distribution costs fell by 24.9% to RMB7.7 million for the six months ended June 30, 2025, attributed to improved cost control[45][50]. - Administrative expenses decreased by RMB7.8 million to RMB35.9 million for the six months ended June 30, 2025, mainly due to lower legal fees and better cost management[46][51]. - Other income decreased by 18.6% to RMB8.8 million for the six months ended June 30, 2025, primarily due to a reduction in government grants[44][49]. - The company reported a net impairment loss of accounts receivables of RMB 0 thousand in 2025, compared to RMB (39) thousand in 2024, indicating improved receivables management[182]. - The increase in inventories was RMB (21,607) thousand in 2025, a reduction from RMB (41,155) thousand in 2024, suggesting better inventory control[182]. Financial Position and Liquidity - As of June 30, 2025, the total capital commitment of the funds was approximately US$647.8 million, with the Group committing approximately US$89.9 million and investing US$75.8 million[27]. - The Group's net current liabilities decreased to approximately RMB576.1 million as of June 30, 2025, compared to RMB603.4 million as of December 31, 2024, with current assets at RMB784.2 million[77]. - The current ratio remained stable at 0.6 as of June 30, 2025, consistent with the level at the end of 2024[78]. - The Group's gearing ratio increased to approximately 78.3% as of June 30, 2025, up from 75.9% at the end of 2024, due to an increase in bank and other loans[83]. - The Group's liquidity position is deemed sufficient to meet ongoing operational requirements, supported by liquid assets and credit facilities[84]. - The Group is actively negotiating with banks on loan terms and financial covenants, and exploring other debt or equity financing arrangements[200]. Corporate Governance and Shareholder Information - The company is committed to enhancing corporate governance practices to safeguard the interests of shareholders and stakeholders, ensuring compliance with the Corporate Governance Code[109][110]. - The interests of directors and chief executives in shares and debentures are disclosed in accordance with the Securities and Futures Ordinance[120][125]. - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2025, consistent with the previous year[112][115]. - The Share Award Scheme aims to align the interests of eligible participants with those of shareholders through ownership of interests in the company[132][135]. - A total of 74,475,000 shares are available for issue under the Share Award Scheme, representing 10% of the issued share capital of the Company[139]. Employee and Talent Management - As of June 30, 2025, the company employed 1,353 individuals, an increase from 1,257 employees as of December 31, 2024, reflecting a focus on talent acquisition[99][102].
天利控股集团(00117) - 2025 - 中期财报