China Harmony Auto Holding Limited (03836) has provided further details on its 2024 Annual Report, focusing on its Share Option Scheme and updates regarding advances to and interest receivable from an Independent Aftersales Company (IAC).

The Share Option Scheme figures remained consistent at 80,379,067 options available for grant as of January 1, 2024, and December 31, 2024. The total number of shares available under the scheme is 122,570,067, which represents 8.05% of the total shares in issue (excluding treasury shares) at the time of the report.

Regarding credit risk exposure related to IAC, the group recorded an additional expected credit loss (ECL) of approximately RMB139.6 million in 2024. This increase, compared to previous years, was attributed to intensified competition in the mainland China new energy vehicle market, which further impacted IAC’s cash flow and liquidity. Based on unaudited accounts for the year ended December 31, 2024, IAC’s net liabilities rose to around RMB855 million, with the business incurring an operating loss of roughly RMB36 million and interest payments of about RMB32 million.

In calculating the ECL, an independent valuer employed a lifetime expected credit loss approach. The exposure at default was estimated at RMB864.7 million, the probability of default was set at 100%, and the loss given default was measured at 82.4%. After factoring in the ECL allowance of RMB712.4 million, the carrying balance of the advances and interest receivable stood at approximately RMB152.3 million as of December 31, 2024, rising to RMB169.0 million by June 30, 2025. The company confirmed receiving RMB40 million in aggregate repayments from IAC on October 9 and 10, 2025.

All other details in the 2024 Annual Report remain unchanged according to the supplemental announcement. The company reiterated its commitment to recovering the outstanding balance and minimizing any potential losses.