芯成科技(00365) - 2025 - 中期财报

Company Information This section provides an overview of the company's fundamental administrative and contact details Board of Directors and Company Secretary The report lists the composition of the company's executive directors, non-executive directors, independent non-executive directors, and members of the audit, remuneration, and nomination committees, noting Mr. Wang Yanxin, an independent non-executive director, will resign on August 1, 2025 - Independent Non-Executive Director Mr. Wang Yanxin will resign on August 1, 2025[3] Registered Office and Principal Place of Business The company's registered office is in Bermuda, with its principal place of business in Tsim Sha Tsui, Kowloon, Hong Kong - The company's registered office is at Clarendon House, Bermuda, with its principal place of business at Tower One, Gateway, 25 Canton Road, Tsim Sha Tsui, Kowloon, Hong Kong[3] Principal Bankers and Auditor The company's principal banker is DBS Bank (Hong Kong) Limited, and its auditor is Grant Thornton Hong Kong Limited - Principal banker is DBS Bank (Hong Kong) Limited, and the auditor is Grant Thornton Hong Kong Limited[3] Share Registrar The company's principal share registrar is in Bermuda, and its Hong Kong branch share registrar is Tricor Tengard Limited - The principal share registrar is Conyers Corporate Services (Bermuda) Limited, and the Hong Kong branch is Tricor Tengard Limited[3][4] Condensed Consolidated Statement of Comprehensive Income This section presents the company's financial performance over the period, detailing revenues, costs, and profits or losses Key Financial Data from Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30, 2025) | Indicator | 2025年6月30日 (HKD thousands) | 2024年6月30日 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | 177,334 | 142,600 | 34,734 | 24.36% | | Cost of Sales | (109,926) | (77,672) | (32,254) | 41.53% | | Gross Profit | 67,408 | 64,928 | 2,480 | 3.82% | | Operating Profit/(Loss) | 8,920 | (10,766) | 19,686 | 182.85% | | Loss for the Period | (3,253) | (26,518) | 23,265 | 87.73% | | Profit/(Loss) from Continuing Operations Attributable to Owners of the Company | 6,309 | (10,777) | 17,086 | 158.55% | | Basic and Diluted Earnings/(Loss) Per Share (HK cents) | 0.42 | (0.74) | 1.16 | 156.76% | Condensed Consolidated Statement of Financial Position This section outlines the company's assets, liabilities, and equity at a specific point in time, reflecting its financial health Key Data from Condensed Consolidated Statement of Financial Position (As at June 30, 2025) | Indicator | 2025年6月30日 (HKD thousands) | 2024年12月31日 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Total Assets | 931,931 | 923,846 | 8,085 | 0.87% | | Non-current Assets | 481,981 | 501,397 | (19,416) | -3.87% | | Current Assets | 443,516 | 416,015 | 27,501 | 6.61% | | Total Equity | 182,148 | 184,921 | (2,773) | -1.50% | | Total Liabilities | 749,783 | 738,925 | 10,858 | 1.47% | | Non-current Liabilities | 494,697 | 350,277 | 144,420 | 41.23% | | Current Liabilities | 255,086 | 388,648 | (133,562) | -34.37% | | Net Current Assets | 194,864 | 33,801 | 161,063 | 476.51% | Condensed Consolidated Statement of Changes in Equity This section details the changes in the company's equity over the period, reflecting movements in capital and retained earnings Key Data from Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30, 2025) | Indicator | 2025年6月30日 (HKD thousands) | 2024年6月30日 (HKD thousands) | Change (HKD thousands) | | :--- | :--- | :--- | :--- | | Equity Attributable to Owners of the Company (End of Period) | 232,786 | 251,898 | (19,112) | | Non-controlling Interests (End of Period) | (50,638) | (23,909) | (26,729) | | Total Equity (End of Period) | 182,148 | 227,989 | (45,841) | | Loss for the Period (Attributable to Owners of the Company) | 6,180 | (10,777) | 16,957 | | Total Comprehensive Expense for the Period (Attributable to Owners of the Company) | 6,660 | (9,847) | 16,507 | Condensed Consolidated Statement of Cash Flows This section presents the cash inflows and outflows from operating, investing, and financing activities, illustrating the company's liquidity and solvency Key Data from Condensed Consolidated Statement of Cash Flows (For the six months ended June 30, 2025) | Indicator | 2025年6月30日 (HKD thousands) | 2024年6月30日 (HKD thousands) | Change (HKD thousands) | | :--- | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (11,984) | (10,289) | (1,695) | | Net Cash Used in Investing Activities | (4,671) | (12,444) | 7,773 | | Net Cash (Used in)/Generated from Financing Activities | (18,934) | 20,926 | (39,860) | | Net Decrease in Cash and Cash Equivalents | (35,589) | (1,807) | (33,782) | | Cash and Cash Equivalents at End of Period | 171,945 | 180,715 | (8,770) | Notes to the Condensed Consolidated Interim Financial Statements This section provides detailed explanations and supplementary information for the figures presented in the condensed consolidated interim financial statements 1. General Information The company is a limited company registered in Bermuda, with shares listed on the Main Board of the Hong Kong Stock Exchange, primarily engaged in SMT equipment manufacturing and energy business, having terminated its radar business - The company is primarily engaged in SMT equipment manufacturing and electricity sales and provision of electricity spot market trading and ancillary services (energy business)[14] - For the six months ended June 30, 2025, the Group has terminated its radar hardware manufacturing and intelligent software development, application, and system integration business[14] 2. Basis of Preparation The condensed consolidated interim financial statements are prepared in accordance with HKAS 34 and the Listing Rules, and should be read in conjunction with the annual consolidated financial statements - The financial statements are prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' and the Listing Rules[17] 3. Significant Accounting Policies The financial statements are primarily prepared under the historical cost convention, except for investment properties and financial assets measured at fair value; several revised HKFRSs adopted this period had no significant impact on consolidated results or financial position - The financial statements are primarily prepared under the historical cost convention, with certain assets presented at fair value[18] - The adoption of newly revised Hong Kong Financial Reporting Standards had no significant impact on the consolidated results and financial position for the current and prior periods[19] 4. Critical Accounting Estimates and Judgements The preparation of financial statements involves management's critical judgments, estimates, and assumptions regarding accounting policy application and carrying amounts of assets, liabilities, income, and expenses, where actual results may differ - Financial statement preparation involves management's critical judgments, estimates, and assumptions, and actual results may differ[20] 5. Revenue Total revenue for the period was HKD 177,334 thousand, primarily from the production and sale of industrial products (HKD 152,408 thousand) and electricity sales (HKD 24,926 thousand), with revenue recognition completed at a point in time Revenue Composition (For the six months ended June 30, 2025) | Revenue Source | 2025年6月30日 (HKD thousands) | 2024年6月30日 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Production and Sale of Industrial Products | 152,408 | 134,758 | 17,650 | 13.10% | | Electricity Sales | 24,926 | 7,842 | 17,084 | 217.85% | | Total | 177,334 | 142,600 | 34,734 | 24.36% | 6. Segment Information The Group primarily operates in industrial product manufacturing and sales and energy business, with the radar business terminated; the industrial products segment saw significant revenue and gross profit growth, while the energy business revenue increased substantially but still recorded gross loss and pre-tax loss - The radar business has been terminated, and segment information does not include discontinued operations[23] Revenue and Gross Profit/(Loss) from Continuing Operations by Segment (For the six months ended June 30, 2025) | Segment | 2025 Revenue (HKD thousands) | 2024 Revenue (HKD thousands) | Revenue Change Rate | 2025 Gross Profit/(Loss) (HKD thousands) | 2024 Gross Profit (HKD thousands) | Gross Profit Change Rate | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Industrial Product Manufacturing and Sales | 150,706 | 131,709 | 14.42% | 74,610 | 59,835 | 24.69% | | Energy Business | 24,926 | 7,842 | 217.85% | (8,904) | 2,044 | -535.52% | | Unallocated Items | 1,702 | 3,049 | -44.18% | 1,702 | 3,049 | -44.18% | | Total | 177,334 | 142,600 | 24.36% | 67,408 | 64,928 | 3.82% | 7. Other Income Other income for the period was HKD 1,384 thousand, mainly from government grants, a significant decrease from the prior period Other Income Composition (For the six months ended June 30, 2025) | Income Source | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Sale of Scrap Materials | 31 | 294 | (263) | -89.46% | | Government Grants | 1,353 | 4,656 | (3,303) | -70.94% | | Total | 1,384 | 4,950 | (3,566) | -72.04% | 8. Finance Income and Expenses Net finance expenses for the period were HKD 10,767 thousand, a decrease from the prior period, primarily due to lower interest expenses on bank and other borrowings Finance Income and Expenses (For the six months ended June 30, 2025) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Finance Income (Bank Deposit Interest) | 561 | 913 | (352) | -38.55% | | Finance Expenses (Borrowing Interest) | (11,328) | (13,410) | 2,082 | -15.53% | | Net Finance Expenses | (10,767) | (12,497) | 1,730 | -13.84% | 9. Income Tax Expense/(Credit) from Continuing Operations Income tax expense from continuing operations for the period was HKD 1,085 thousand, compared to an income tax credit of HKD 1,453 thousand in the prior period, mainly due to China corporate income tax Income Tax from Continuing Operations (For the six months ended June 30, 2025) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (HKD thousands) | | :--- | :--- | :--- | :--- | | China Corporate Income Tax Expense/(Credit) | 1,085 | (1,453) | 2,538 | 10. Discontinued Operations Discontinued operations (radar business) resulted in a loss of HKD 187 thousand for the period, primarily administrative expenses, with no such loss in the prior period Loss from Discontinued Operations (For the six months ended June 30, 2025) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Revenue | — | — | | Administrative Expenses | (187) | — | | Loss for the Period from Discontinued Operations | (187) | — | - Discontinued operations primarily refer to the radar business, incurring a loss of HKD 187 thousand for the period[14][28] 11. Earnings/(Loss) Per Share Basic and diluted earnings per share from continuing operations were 0.43 HK cents, loss per share from discontinued operations was 0.01 HK cents, totaling 0.42 HK cents earnings per share, achieving a turnaround Earnings/(Loss) Per Share (For the six months ended June 30, 2025) | Indicator | 2025 (HK cents) | 2024 (HK cents) | Change (HK cents) | | :--- | :--- | :--- | :--- | | Continuing Operations | 0.43 | (0.74) | 1.17 | | Discontinued Operations | (0.01) | — | (0.01) | | Basic and Diluted Earnings/(Loss) | 0.42 | (0.74) | 1.16 | 12. Dividends No dividends were declared or proposed by the company for the six months ended June 30, 2025 - No dividends were declared or proposed for the current period or the prior corresponding period[30] 13. Trade and Other Receivables As at June 30, 2025, total trade and bills receivables were HKD 105,564 thousand, a significant increase from HKD 72,136 thousand at the end of 2024, with receivables over 180 days growing substantially Ageing Analysis of Trade and Bills Receivables (As at June 30, 2025) | Ageing | 2025年6月30日 (HKD thousands) | 2024年12月31日 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | 0 to 90 Days | 48,379 | 58,476 | (10,097) | -17.27% | | 91 to 180 Days | 28,658 | 11,779 | 16,879 | 143.29% | | Over 180 Days | 28,527 | 1,881 | 26,600 | 1414.14% | | Total | 105,564 | 72,136 | 33,382 | 46.28% | 14. Trade and Other Payables As at June 30, 2025, total trade and bills payables were HKD 45,693 thousand, a decrease from HKD 49,634 thousand at the end of 2024 Ageing Analysis of Trade and Bills Payables (As at June 30, 2025) | Ageing | 2025年6月30日 (HKD thousands) | 2024年12月31日 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | 0 to 90 Days | 40,141 | 43,702 | (3,561) | -8.15% | | 91-120 Days | 447 | 253 | 194 | 76.68% | | Over 120 Days | 5,105 | 5,679 | (574) | -10.11% | | Total | 45,693 | 49,634 | (3,941) | -7.94% | 15. Assets Classified as Held for Sale As at June 30, 2025, the Group classified equipment, intangible assets, and inventories of the radar business, totaling HKD 6,434 thousand, as assets held for sale - Equipment, intangible assets, and inventories of the radar business, totaling HKD 6,434 thousand, were classified as assets held for sale[33] Chairman's Report This report from the Chairman provides an executive summary of the company's performance, strategic direction, and outlook Overview In the first half of 2025, the global economy faced challenges with slowing growth, but China's economy maintained steady progress with a 5.3% GDP increase; the Group adopted a prudent strategy, focusing on SMT and semiconductor equipment manufacturing and energy businesses - In the first half of 2025, global economic growth slowed, while China's GDP grew by 5.3% and industrial value-added above designated size increased by 6.4%[35] - The Group focuses on SMT and semiconductor equipment manufacturing and energy businesses, aiming to create greater commercial value and shareholder returns[35] Business Review For the period, the Group's revenue increased by 24.4% year-on-year to HKD 177,334 thousand, and gross profit grew by 3.8% to HKD 67,408 thousand; SMT and semiconductor equipment manufacturing contributed 85.0% of revenue, the energy business gradually stabilized, administrative expenses decreased, resulting in a profit attributable to owners of HKD 6,180 thousand, achieving a turnaround Key Financial Data from Group Business Review (For the six months ended June 30, 2025) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | | Overall Revenue | 177,334 | 142,600 | 24.4% | | Gross Profit | 67,408 | 64,928 | 3.8% | | SMT and Semiconductor Equipment Manufacturing Business Revenue | 150,706 | 131,709 | 14.4% | | SMT and Semiconductor Equipment Manufacturing Business Gross Profit | 74,610 | 59,835 | 24.7% | | Energy Business Segment Revenue | 24,926 | 7,842 | 217.85% | | Profit Attributable to Owners of the Company | 6,180 | (10,777) | Turnaround | - The Group achieved a turnaround, primarily due to stable operations in SMT and semiconductor equipment manufacturing, gradual stabilization of the energy business, and reduced administrative expenses[36] - The Group commissioned China's first grid-side new energy storage project for spot trading and ancillary services in Datong, Shanxi, at the end of 2023, with the energy business segment revenue reaching HKD 24,926 thousand this period[37] Industry Trends This section analyzes the broader market and technological trends impacting the company's SMT and semiconductor equipment manufacturing and energy businesses SMT and Semiconductor Equipment Manufacturing Related Industries China's manufacturing sector is stable and improving, with significant growth in equipment manufacturing and high-tech manufacturing value-added; demand for Mini LED TVs, AI servers, and automotive electronics PCBs is rising, with the global PCB market expected to reach USD 96.8 billion in 2025, China's smartphone shipments to reach 291 million units, the automotive electronics market to reach RMB 1.28 trillion, and China's IoT spending to reach USD 165.86 billion - China's equipment manufacturing and high-tech manufacturing value-added grew by 10.2% and 9.5%, respectively[38] - By 2025, China's Mini LED TV penetration rate is expected to exceed 20%, the global PCB market size to reach USD 96.8 billion, and China's smartphone shipments to reach 291 million units[38] - By 2025, China's automotive electronics market size is expected to reach RMB 1.28 trillion, and IoT spending to reach USD 165.86 billion[39] Energy Industry China's power industry continues to grow with increasing renewable energy share, and energy storage is crucial for alleviating grid absorption pressure; since 2025, China's energy storage industry has grown rapidly, with new energy storage installed capacity continuously climbing to 94.91 million kW / 222 million kWh by the end of June, an increase of approximately 29% year-on-year; multiple policies have been introduced to support energy storage development, including expanding application scenarios, improving utilization, promoting technological innovation, strengthening standard systems, and perfecting market mechanisms - Energy storage is a key technology for alleviating grid absorption pressure and enhancing power system regulation capabilities[41] - By the end of June, national new energy storage installed capacity reached 94.91 million kW / 222 million kWh, an increase of approximately 29% compared to the end of 2024[41] - Multiple government departments have introduced policies to promote large-scale construction, technological innovation, standard system improvement, and market mechanism optimization for new energy storage[42] Development and Outlook China's economy is expected to maintain steady progress in the second half of 2025; the Group will consolidate its core SMT and semiconductor equipment manufacturing business, enhance R&D and market competitiveness, and accelerate the development of its energy business to contribute more revenue and shareholder value - China's economy is expected to continue its stable growth in the second half of 2025, with domestic demand, new energy, and high-end manufacturing as key drivers[44] - The Group will operate its SMT and semiconductor equipment manufacturing business steadily, consolidate its independent R&D advantages, and accelerate the development of its energy business to contribute more revenue[44] Management Discussion and Analysis This section provides management's perspective on the company's financial performance, operational results, and future prospects, offering insights beyond the financial statements Performance Review Revenue for the period was HKD 177,334 thousand, up 24.4% year-on-year; SMT and semiconductor equipment manufacturing accounted for 85.0% of total revenue, with increased contribution from the energy business; profit attributable to owners was HKD 6,180 thousand, and comprehensive income was HKD 6,660 thousand, both increasing year-on-year, mainly due to stable energy business operations and reduced administrative expenses - Revenue increased by 24.4% year-on-year to HKD 177,334 thousand, with profit attributable to owners reaching HKD 6,180 thousand, achieving a turnaround[46] - The energy business gradually entered stable operation, and reduced one-off expenses and daily management costs led to lower administrative expenses[46] - The domestic manufacturing and energy industries have broad prospects for modernization and green transformation, and the Group will actively seize development opportunities[47] SMT and Semiconductor Equipment Manufacturing Business For the period, SMT and semiconductor equipment manufacturing revenue was HKD 150,706 thousand, up 14.4% year-on-year; segment gross profit was HKD 74,610 thousand, up 24.7%; segment profit before tax was HKD 23,384 thousand, up 38.4%, making it the primary source of revenue and profit; the company actively expanded its market, launched an e-commerce platform, participated in domestic and international exhibitions, and deepened its overseas strategic layout, benefiting from growing market demand for Mini LED, new energy vehicles, and domestic semiconductor equipment substitution SMT and Semiconductor Equipment Manufacturing Business Performance (For the six months ended June 30, 2025) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | | Business Segment Revenue | 150,706 | 131,709 | 14.4% | | Segment Gross Profit | 74,610 | 59,835 | 24.7% | | Segment Profit Before Income Tax | 23,384 | 16,890 | 38.4% | - The company actively promotes its market presence and deepens its overseas strategic layout by launching the 'Nitto Technology Mall' e-commerce platform and participating in domestic and international industry exhibitions[48] - SMT technology is widely used in communications, computers, automotive electronics, consumer electronics, and other fields, benefiting from growing market demand for Mini LED, new energy vehicles, and domestic semiconductor equipment substitution[49][50] Energy Business The Group's Herong New Energy Storage Power Station in Datong, Shanxi, commenced commercial operation in 2023; for the period, energy business revenue was HKD 24,926 thousand, but still recorded a gross loss of HKD 8,904 thousand and a pre-tax loss of HKD 19,133 thousand; the Herong Power Station has passed secondary and primary frequency regulation technical tests and entered market operation, with its frequency regulation response speed and accuracy reaching industry-leading levels; the power station has initiated new energy leasing business and plans to consolidate frequency regulation revenue, participate in the electricity spot market and standby compensation, and explore diversified development opportunities Energy Business Performance (For the six months ended June 30, 2025) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Revenue | 24,926 | 7,842 | | Segment Gross Loss | (8,904) | 2,044 | | Segment Loss Before Income Tax | (19,133) | (31,413) | - The Herong Power Station has passed secondary frequency regulation (AGC) and primary frequency regulation (PFR) technical tests and officially entered market operation, with its K-value and charge-discharge conversion rate ranking among the industry's best[53] - The Herong Power Station has initiated new energy leasing business and plans to consolidate frequency regulation revenue, actively participate in the electricity spot market and standby compensation, and explore diversified development opportunities[53] Financial Review This section provides a detailed analysis of the company's financial performance, including revenue, costs, profits, and key financial ratios Revenue Total revenue for the period was HKD 177,334 thousand, a 24.4% year-on-year increase, primarily driven by SMT equipment manufacturing and related businesses and electricity sales Revenue by Business Segment (For the six months ended June 30, 2025) | Business Segment | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | SMT Equipment Manufacturing and Related Businesses | 150,706 | 131,709 | 18,997 | 14.42% | | Electricity Sales | 24,926 | 7,842 | 17,084 | 217.85% | | Integrated Services | 1,702 | 3,049 | (1,347) | -44.18% | | Total | 177,334 | 142,600 | 34,734 | 24.36% | Other Income Other income for the period was HKD 1,384 thousand, mainly from government grants - Other income for the period was HKD 1,384 thousand, primarily from government grants[55] Distribution Costs Distribution costs for the period were HKD 26,563 thousand, an increase of HKD 5,950 thousand year-on-year, mainly growing with sales revenue Distribution Costs (For the six months ended June 30, 2025) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Distribution Costs | 26,563 | 20,613 | 5,950 | 28.86% | Administrative Expenses Administrative expenses for the period were HKD 34,570 thousand, a decrease of HKD 24,954 thousand year-on-year, mainly due to the reclassification of depreciation from the electricity sales segment to cost of sales Administrative Expenses (For the six months ended June 30, 2025) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Administrative Expenses | 34,570 | 59,524 | (24,954) | -41.92% | Net Finance Expenses Net finance expenses for the period were HKD 10,767 thousand, a decrease of HKD 1,730 thousand year-on-year, primarily due to reduced interest expenses Net Finance Expenses (For the six months ended June 30, 2025) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Net Finance Expenses | 10,767 | 12,497 | (1,730) | -13.84% | Profit for the Period Profit attributable to owners for the period was HKD 6,180 thousand, achieving a turnaround - Profit attributable to owners for the period was HKD 6,180 thousand, achieving a turnaround[59] EBITDA EBITDA for the period was HKD 21,750 thousand, with an EBITDA margin of approximately 12.26% EBITDA (For the six months ended June 30, 2025) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | EBITDA | 21,750 | 23,916 | (2,166) | -9.06% | | EBITDA Margin | 12.26% | 16.77% | -4.51% | -26.89% | Current Ratio As at June 30, 2025, the Group's net current assets were HKD 194,864 thousand, with a current ratio of approximately 176.39%, indicating ample working capital Current Ratio (As at June 30, 2025) | Indicator | 2025年6月30日 (HKD thousands) | 2024年12月31日 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Net Current Assets | 194,864 | 33,801 | 161,063 | 476.51% | | Current Ratio | 176.39% | 108.08% | 68.31% | 63.20% | Working Capital Management As at June 30, 2025, cash and bank balances decreased to HKD 171,945 thousand; average trade receivables turnover days, trade payables turnover days, and inventory turnover days all increased Working Capital Management Indicators (As at June 30, 2025) | Indicator | 2025年6月30日 | 2024年12月31日 | Change | | :--- | :--- | :--- | :--- | | Cash and Bank Balances (HKD thousands) | 171,945 | 205,301 | (33,356) | | Average Trade Receivables Turnover Days | 180 Days | 95 Days | 85 Days | | Average Trade Payables Turnover Days | 156 Days | 72 Days | 84 Days | | Average Inventory Turnover Days | 80 Days | 44 Days | 36 Days | Pledge of the Group's Assets As at June 30, 2025, the Group's bank facilities were secured by first legal charges over certain land and buildings with a total net book value of approximately HKD 70,873 thousand - The Group's bank facilities are secured by first legal charges over land and buildings with a net book value of approximately HKD 70,873 thousand[64] Equity and Liabilities As at June 30, 2025, the Group's net assets attributable to owners were approximately HKD 232,786 thousand, with equity increasing by HKD 6,660 thousand during the period Equity and Liabilities (As at June 30, 2025) | Indicator | 2025年6月30日 (HKD thousands) | 2024年12月31日 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Equity Attributable to Owners of the Company | 232,786 | 226,126 | 6,660 | 2.95% | Employees As at June 30, 2025, the Group employed approximately 285 full-time employees and workers in mainland China and approximately 24 staff in Hong Kong, enhancing employee capabilities through regular training and welfare programs - The Group employs approximately 285 full-time employees in mainland China and approximately 24 staff in Hong Kong[66] - The Group maintains and enhances employee capabilities through regular training, employee benefits, and performance-linked bonuses[66] Principal Risks and Uncertainties This section identifies and discusses the key risks and uncertainties that could materially affect the company's business, financial condition, and operating results Operational Risks The Group's various business segments face operational risks, which are effectively mitigated through management monitoring, risk management policies, and whistleblowing procedures - The Group manages operational risks through management monitoring, risk management policies, and whistleblowing procedures across its business segments[68] Financial Risks This section details the financial risks the company faces, including credit, liquidity, and foreign exchange risks, and how they are managed Credit Risk The Board closely monitors credit risk, with management responsible for credit approval and collection procedures, ensuring adequate impairment provisions for irrecoverable amounts, thereby effectively reducing credit risk - The Group mitigates credit risk through close monitoring, strict credit approval and collection procedures, and ensuring adequate impairment provisions[70] Liquidity Risk The Group has established an appropriate liquidity risk management framework, maintaining sufficient cash and cash equivalents to meet working capital needs and mitigate cash flow fluctuations - The Group effectively manages liquidity risk by establishing a liquidity risk management framework and maintaining sufficient cash and cash equivalents[71] Foreign Exchange Risk The Group faces foreign exchange risk arising from business transactions, assets, and liabilities denominated in multiple currencies such as RMB, HKD, and USD, and will continue to closely monitor and implement hedging measures when necessary - The Group faces foreign exchange risk from transactions, assets, and liabilities denominated in RMB, HKD, USD, and other currencies, and will closely monitor and implement hedging measures as needed[72] Disclosure of Interests This section provides information on the interests of directors and substantial shareholders in the company's shares and underlying shares Directors' Interests in Shares and Underlying Shares As at June 30, 2025, no director had any disclosable interests or short positions in the shares, underlying shares, or debentures of the company or its associated corporations - As at June 30, 2025, no director held any disclosable interests or short positions in the shares, underlying shares, or debentures of the company or its associated corporations[73] Directors' Rights to Acquire Shares or Debentures During the period, the company did not grant any rights to any director or their spouse or minor children to acquire shares or debentures of the company, nor were any such rights exercised - During the period, the company did not grant any rights to any director or their associates to acquire company shares or debentures, nor were any such rights exercised[74] Substantial Shareholders' Interests in Shares and Underlying Shares As at June 30, 2025, Core Ding Limited, Chen Ping, Bi Tianfu, and Da Guang were substantial shareholders, with Core Ding Limited holding 67.85% of shares as the largest shareholder Substantial Shareholders' Long Positions in Shares (As at June 30, 2025) | Shareholder Name | Nature of Interest | Number of Ordinary Shares Held | Approximate Percentage of Total Equity (%) | | :--- | :--- | :--- | :--- | | Core Ding Limited | Beneficial Owner | 987,176,230 | 67.85 | | Chen Ping | Beneficial Owner | 100,000,000 | 6.87 | | Bi Tianfu | Beneficial Owner | 87,783,168 | 6.03 | | Da Guang | Beneficial Owner | 84,270,000 | 5.79 | - Core Ding Limited is 50.1% owned by Qingxin (Suzhou Industrial Park) Asset Management Co., Ltd., making it the ultimate controlling shareholder of the company[14][77] Corporate Governance and Other Information This section details the company's adherence to corporate governance principles and other relevant information for stakeholders Corporate Governance Practices The company is committed to complying with the Corporate Governance Code and regularly reviews it to ensure adherence to Appendix C1 of the Listing Rules; the company complied with the code throughout the period - The company has adopted the Corporate Governance Code set out in Appendix C1 of the Listing Rules and complied with it during the period[78] Audit Committee The Audit Committee has reviewed the Group's interim results for the six months ended June 30, 2025, and found them to be in compliance with applicable accounting standards, laws, and Listing Rules - The Audit Committee has reviewed the interim results and found them to be in compliance with applicable accounting standards, laws, and Listing Rules[79] Purchase, Sale or Redemption of the Company's Listed Securities During the period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the period, neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities[80] Dividends The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the current period[81] Standard Code for Securities Transactions by Directors The company has adopted the Standard Code for Securities Transactions by Directors as set out in Appendix C3 of the Listing Rules, and all directors confirm compliance with the code - The company has adopted the Standard Code for Securities Transactions by Directors, and all directors confirm compliance[82] Publication of Interim Report on HKEX and Company Website This interim report will be published on the HKEX website and the company's website, and dispatched to shareholders - The interim report will be published on the HKEX website and the company's website, and dispatched to shareholders[83] Cautionary Statement This statement advises investors on the inherent risks associated with relying on forward-looking information and unaudited financial data - The Board reminds investors that unaudited interim financial results and operating data are based on internal information, and undue reliance may pose investment risks; investors should exercise extreme caution when trading the company's securities[85] - The report contains forward-looking statements that do not constitute a guarantee of future performance, and actual results may differ significantly due to factors such as industry economic conditions, changes in customer demand, and government policy changes[85]