[Financial Summary](index=1&type=section&id=Financial%20Summary%20Table) This section provides a concise overview of the group's key financial performance metrics for the six months ended June 30, 2025, compared to the prior year [Financial Summary for the Six Months Ended June 30, 2025](index=1&type=table&id=Financial%20Summary%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | Percentage Change | | :--- | :--- | :--- | :--- | | Revenue | 1,621,157 | 1,582,285 | +2.5% | | Gross Profit | 703,462 | 709,254 | -0.8% | | Gross Profit Margin | 43.4% | 44.8% | -1.4% | | EBITDA | 293,690 | 262,021 | +12.1% | | EBITDA Margin | 18.1% | 16.6% | +1.5% | | Operating Profit | 122,194 | 100,287 | +21.8% | | Operating Profit Margin | 7.5% | 6.3% | +1.2% | | Profit for the Period | 119,650 | 46,286 | +158.5% | | Profit attributable to owners of the Company | 118,081 | 29,662 | +298.1% | | Basic and Diluted Earnings Per Share | RMB 3.66 cents | RMB 0.92 cents | - | | Proposed/Paid Interim Dividend Per Share | HK 1.2 cents | HK 0.3 cents | +300% | | Proposed/Paid Special Dividend Per Share | HK 3.2 cents | HK 3.2 cents | 0% | | Adjusted EBITDA | 366,450 | 356,172 | +2.9% | | Adjusted EBITDA Margin | 22.6% | 22.5% | +0.1% | | Adjusted Operating Profit | 194,954 | 194,438 | +0.3% | | Adjusted Operating Profit Margin | 12.0% | 12.3% | -0.3% | | Adjusted Profit for the Period | 192,410 | 188,396 | +2.1% | [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the group's condensed consolidated financial statements, including the statement of profit or loss, comprehensive income, and financial position [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the group's revenue increased by 2.5% to RMB 1.621 billion, with profit attributable to owners significantly up by 298.1% to RMB 118 million [Key Data from Condensed Consolidated Statement of Profit or Loss](index=2&type=table&id=Key%20Data%20from%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue | 1,621,157 | 1,582,285 | | Gross Profit | 703,462 | 709,254 | | Operating Profit | 122,194 | 100,287 | | Profit Before Tax | 175,568 | 78,999 | | Profit for the Period | 119,650 | 46,286 | | Profit attributable to owners of the Company | 118,081 | 29,662 | | Basic and Diluted Earnings Per Share | RMB 3.66 cents | RMB 0.92 cents | - Profit for the period and profit attributable to owners of the Company significantly increased, primarily due to the recognition of goodwill impairment losses, other asset impairment losses, and impairment provisions for investments in associates in the prior period, with no similar impairment provisions in the reporting period[50](index=50&type=chunk) [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, total comprehensive income after tax increased by 70.5% to RMB 95.859 million, despite other comprehensive income turning into a loss [Key Data from Condensed Consolidated Statement of Comprehensive Income](index=3&type=table&id=Key%20Data%20from%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Profit for the Period | 119,650 | 46,286 | | Other Comprehensive (Loss)/Income for the Period, After Tax | (23,791) | 9,931 | | Total Comprehensive Income for the Period, After Tax | 95,859 | 56,217 | | Total Comprehensive Income attributable to owners of the Company | 84,275 | 38,532 | - Other comprehensive income after tax for the period turned from income in the corresponding period of 2024 to a loss in the corresponding period of 2025, primarily due to currency translation differences of the Company and its non-overseas operations, shifting from an income of RMB 23.240 million to a loss of RMB 21.245 million[7](index=7&type=chunk) [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets slightly decreased to RMB 14.805 billion, with a notable shift from cash to fair value financial assets [Key Data from Condensed Consolidated Statement of Financial Position](index=4&type=table&id=Key%20Data%20from%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) | Metric | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Total Assets | 14,804,909 | 15,002,076 | | Non-current Assets | 6,970,443 | 6,838,549 | | Current Assets | 7,834,466 | 8,163,527 | | Total Equity | 13,749,754 | 13,720,356 | | Total Liabilities | 1,055,155 | 1,281,720 | | Cash and Bank Balances | 4,501,462 | 5,562,231 | | Financial Assets at Fair Value Through Profit or Loss (Current) | 1,464,721 | 706,890 | | Trade and Other Receivables | 811,947 | 860,105 | | Trade and Other Payables | 611,226 | 700,879 | - Cash and bank balances within current assets decreased by **RMB 1.06 billion**, while financial assets at fair value through profit or loss (current) increased by **RMB 750 million**[8](index=8&type=chunk) - Total liabilities decreased by **RMB 226 million**, primarily due to a reduction in borrowings, trade and other payables, and contract liabilities within current liabilities[9](index=9&type=chunk) [Notes to the Financial Statements](index=6&type=section&id=Notes%20to%20the%20Financial%20Statements) This section provides detailed notes explaining the basis of preparation, accounting policies, and specific financial statement line items [Basis of Preparation](index=6&type=section&id=Basis%20of%20Preparation) The condensed consolidated interim financial information for the six months ended June 30, 2025, is prepared in accordance with HKAS 34 - The interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants[10](index=10&type=chunk) [Accounting Policies](index=6&type=section&id=Accounting%20Policies) New and revised standards adopted during the period had no material impact, and management is assessing future standards - New and revised standards adopted during the reporting period had no material impact on the group's current period results and financial position, requiring no changes to accounting policies or retrospective adjustments[12](index=12&type=chunk) - Management is evaluating several new and revised standards issued but not yet effective, including HKFRS 9, 7, 18, 19, and HKAS 28 amendments, with expected effective dates on or after January 1, 2026[13](index=13&type=chunk)[14](index=14&type=chunk) [Revenue and Segment Information](index=7&type=section&id=Revenue%20and%20Segment%20Information) The group operates in four segments: Flavors and Food Ingredients, Tobacco Raw Materials, Fragrance Raw Materials, and Seasoning, with varied performance across segments - The group's operations are divided into four main operating segments: Flavors and Food Ingredients, Tobacco Raw Materials, Fragrance Raw Materials, and Seasoning[15](index=15&type=chunk)[17](index=17&type=chunk) [Segment Revenue and Results for the Six Months Ended June 30, 2025](index=7&type=table&id=Segment%20Revenue%20and%20Results%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025) | Segment | Net Revenue (RMB '000) | Segment Results (RMB '000) | | :--- | :--- | :--- | | Flavors and Food Ingredients | 595,730 | 18,766 | | Tobacco Raw Materials | 238,424 | 31,342 | | Fragrance Raw Materials | 405,373 | 61,709 | | Seasoning | 381,630 | 38,930 | | Others | — | (28,553) | | **Total** | **1,621,157** | **122,194** | [Segment Revenue and Results for the Six Months Ended June 30, 2024](index=7&type=table&id=Segment%20Revenue%20and%20Results%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202024) | Segment | Net Revenue (RMB '000) | Segment Results (RMB '000) | | :--- | :--- | :--- | | Flavors and Food Ingredients | 651,838 | 137,858 | | Tobacco Raw Materials | 164,103 | (3,417) | | Fragrance Raw Materials | 376,763 | (16,333) | | Seasoning | 389,072 | 55,457 | | Others | 509 | (73,278) | | **Total** | **1,582,285** | **100,287** | [Other Income and Other Gains – Net](index=10&type=section&id=Other%20Income%20and%20Other%20Gains%20%E2%80%93%20Net) Net other income and gains increased by 28.5% to RMB 85.386 million, driven by gains from subsidiary disposal and foreign exchange [Other Income and Other Gains – Net](index=10&type=table&id=Other%20Income%20and%20Other%20Gains%20%E2%80%93%20Net) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Fair value changes of financial assets at fair value through profit or loss | 26,342 | 17,794 | | Gain/(Loss) on disposal of a subsidiary | 13,176 | (2,592) | | Government grants | 52,412 | 68,021 | | Net foreign exchange gain/(loss) | 10,051 | (17,669) | | Fair value changes of previously held interest in an associate upon becoming a subsidiary | (14,296) | (938) | | **Total** | **85,386** | **66,424** | - Gain on disposal of a subsidiary turned from a loss of **RMB 2.592 million** in the prior period to a gain of **RMB 13.176 million** in the reporting period[23](index=23&type=chunk) - Foreign exchange results turned from a loss of **RMB 17.669 million** in the prior period to a gain of **RMB 10.051 million** in the reporting period[23](index=23&type=chunk) [Expenses by Nature](index=10&type=section&id=Expenses%20by%20Nature) Employee and welfare expenses increased by 14.5% to RMB 424.891 million, with a significant rise in inventory impairment provisions [Expenses by Nature](index=10&type=table&id=Expenses%20by%20Nature) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Depreciation | 109,980 | 101,672 | | Amortisation | 52,294 | 51,429 | | Impairment provision for inventories | 30,756 | 577 | | Employee and welfare expenses | 424,891 | 370,992 | | Research and development expenses | 125,146 | 121,362 | - Impairment provision for inventories significantly increased from **RMB 577 thousand** in the corresponding period of 2024 to **RMB 30.756 million** in the corresponding period of 2025[24](index=24&type=chunk) - Employee and welfare expenses included in R&D expenses amounted to **RMB 78.917 million**, accounting for **63%** of total R&D expenses[26](index=26&type=chunk) [Income Tax Expense](index=11&type=section&id=Income%20Tax%20Expense) Income tax expense increased by 70.9% to RMB 55.918 million, primarily due to higher profit before tax [Income Tax Expense](index=11&type=table&id=Income%20Tax%20Expense) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Current tax: China corporate income tax | 76,378 | 70,178 | | Deferred income tax | (20,800) | (37,702) | | **Total** | **55,918** | **32,713** | - The increase in income tax expense was primarily due to the rise in profit before tax during the reporting period[72](index=72&type=chunk) - The group incurs income tax expenses in Mainland China, Hong Kong, Germany, and Indonesia, with China corporate income tax being the largest component[26](index=26&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk) [Earnings Per Share](index=12&type=section&id=Earnings%20Per%20Share) Basic and diluted earnings per share significantly increased to RMB 3.66 cents, reflecting a substantial rise in profit attributable to owners [Earnings Per Share Data](index=12&type=table&id=Earnings%20Per%20Share%20Data) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Profit attributable to owners of the Company (RMB '000) | 118,081 | 29,662 | | Weighted average number of ordinary shares in issue (thousands) | 3,229,927 | 3,229,927 | | Basic Earnings Per Share (RMB cents) | 3.66 | 0.92 | | Diluted Earnings Per Share (RMB cents) | 3.66 | 0.92 | - Both basic and diluted earnings per share significantly increased, consistent with the growth trend in profit attributable to owners of the Company[31](index=31&type=chunk)[32](index=32&type=chunk) - The employee share incentive scheme of Guangdong Jiahao Food Co., Ltd. resulted in an adjustment to the diluted EPS calculation, but some restricted shares were excluded due to their anti-dilutive effect[32](index=32&type=chunk) [Dividends](index=13&type=section&id=Dividends) The Board resolved to declare an interim dividend of HK 1.2 cents and a special dividend of HK 3.2 cents per share for the period [Dividend Distribution](index=13&type=table&id=Dividend%20Distribution) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Proposed interim dividend of HK 1.2 cents per share for the six months ended June 30, 2025 | 35,346 | — | | Proposed special dividend of HK 3.2 cents per share for the six months ended June 30, 2025 | 94,257 | — | | Interim dividend paid of HK 0.3 cents per share for the six months ended June 30, 2024 | — | 8,839 | | Special dividend paid of HK 3.2 cents per share for the six months ended June 30, 2024 | — | 94,285 | | **Total** | **129,603** | **103,124** | - The proposed interim dividend for H1 2025 is **HK 1.2 cents per share**, representing a **300% increase** compared to HK 0.3 cents in H1 2024[34](index=34&type=chunk)[102](index=102&type=chunk) - As the interim and special dividends were declared after the reporting date, these payable dividends were not recognized as at June 30, 2025[35](index=35&type=chunk) [Trade and Other Receivables](index=13&type=section&id=Trade%20and%20Other%20Receivables) Net trade and other receivables decreased to RMB 811.947 million, with an increase in impairment provisions for trade receivables [Trade and Other Receivables](index=13&type=table&id=Trade%20and%20Other%20Receivables) | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade receivables – net | 559,098 | 642,223 | | Impairment provision for trade receivables | (134,353) | (127,652) | | Bills receivable | 17,034 | 33,751 | | Prepayments and other receivables | 207,706 | 161,448 | | **Total** | **811,947** | **860,105** | - Impairment provision for trade receivables increased from **RMB 127.652 million** as of December 31, 2024, to **RMB 134.353 million** as of June 30, 2025[36](index=36&type=chunk)[37](index=37&type=chunk) - The credit period granted to customers generally ranges from **0 to 180 days**, with the aging of trade receivables primarily concentrated within **0 to 1 year**[37](index=37&type=chunk) [Borrowings](index=14&type=section&id=Borrowings) Total bank borrowings decreased to RMB 155.160 million, with all loans repayable within one year and a decrease in average interest rates [Borrowings Situation](index=14&type=table&id=Borrowings%20Situation) | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Short-term secured bank loans | 22,000 | 18,000 | | Unsecured bank loans | 133,160 | 140,000 | | Current portion of secured bank loans under non-current liabilities | — | 36,000 | | **Total Borrowings** | **155,160** | **194,000** | - The average annual interest rate for secured bank loans decreased from **4.2%** in H1 2024 to **4.0%** in H1 2025[38](index=38&type=chunk) - The average annual interest rate for unsecured bank loans decreased from **2.6%** in H1 2024 to **1.4%** in H1 2025[38](index=38&type=chunk) [Trade and Other Payables](index=15&type=section&id=Trade%20and%20Other%20Payables) Total trade and other payables decreased to RMB 611.226 million, with trade payables primarily aged within 0 to 90 days [Trade and Other Payables](index=15&type=table&id=Trade%20and%20Other%20Payables) | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade payables | 264,139 | 266,504 | | Bills payable | 7,271 | — | | Accrued payroll | 114,645 | 166,238 | | Other taxes payable | 39,712 | 54,971 | | Other payables | 174,487 | 202,036 | | Deferred income from government grants | 10,972 | 11,130 | | **Total** | **611,226** | **700,879** | - The non-current portion under trade and other payables primarily refers to deferred income from various government grants from Chinese government agencies[40](index=40&type=chunk) - The credit period granted by suppliers to the group ranges from **0 to 180 days**, with the aging of trade payables primarily concentrated within **0 to 90 days**[40](index=40&type=chunk)[80](index=80&type=chunk) [Reconciliation of HKFRS Measures to Non-HKFRS Measures](index=17&type=section&id=Reconciliation%20of%20HKFRS%20Measures%20to%20Non-HKFRS%20Measures) The group provides adjusted non-HKFRS measures to exclude non-cash items like share-based payments and impairment losses, offering a clearer view of core operating performance - Non-HKFRS measures, such as adjusted EBITDA, operating profit, and profit for the period, aim to exclude non-cash items to provide a clearer perspective on core operating performance[41](index=41&type=chunk) [Reconciliation of Adjusted Financial Measures (Six Months Ended June 30, 2025)](index=17&type=table&id=Reconciliation%20of%20Adjusted%20Financial%20Measures%20(Six%20Months%20Ended%20June%2030%2C%202025)) | Item | As Reported (RMB '000) | Share-based Payment Expenses (RMB '000) | Impairment of Property, Plant and Equipment (RMB '000) | Adjusted (RMB '000) | | :--- | :--- | :--- | :--- | :--- | | EBITDA | 293,690 | 72,390 | 370 | 366,450 | | Operating Profit | 122,194 | 72,390 | 370 | 194,954 | | Profit for the Period | 119,650 | 72,390 | 370 | 192,410 | [Reconciliation of Adjusted Financial Measures (Six Months Ended June 30, 2024)](index=17&type=table&id=Reconciliation%20of%20Adjusted%20Financial%20Measures%20(Six%20Months%20Ended%20June%2030%2C%202024)) | Item | As Reported (RMB '000) | Share-based Payment Expenses (RMB '000) | Goodwill Impairment (RMB '000) | Intangible Assets Impairment (RMB '000) | Impairment of Property, Plant and Equipment (RMB '000) | Impairment Provision for Investments in Associates (RMB '000) | Adjusted (RMB '000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | EBITDA | 262,021 | 44,653 | 29,309 | 14,380 | 5,809 | — | 356,172 | | Operating Profit | 100,287 | 44,653 | 29,309 | 14,380 | 5,809 | — | 194,438 | | Profit for the Period | 46,286 | 44,653 | 29,309 | 14,380 | 5,809 | 47,959 | 188,396 | [Management Discussion and Analysis](index=19&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's perspective on the group's operational and financial performance, industry trends, and future outlook [Overview](index=19&type=section&id=Overview) In H1 2025, the group navigated global economic challenges by adopting AI, expanding into Southeast Asia, and enhancing risk management - The global economy faced challenges from high inflation, high interest rates, and supply chain disruptions, leading to weak domestic consumption and intensified market competition[46](index=46&type=chunk) - The group introduced artificial intelligence technology to enhance intelligence and digitalization, and steadily advanced overseas market development by establishing factories in Southeast Asia[46](index=46&type=chunk) - The group strengthened risk management, optimized operational processes, and improved regulations to mitigate operational risks[46](index=46&type=chunk) [Industry Overview](index=20&type=section&id=Industry%20Overview) The tobacco, food, beverage, daily chemical, and seasoning industries face evolving consumer trends and intensified competition, requiring innovation and digital transformation [Tobacco Industry Overview](index=20&type=section&id=Tobacco%20Industry%20Overview) Traditional cigarettes dominate the domestic market, while international companies accelerate investment in new tobacco products like HNB - In H1 2025, cigarette production reached **27.513 million cases**, a **0.8% year-on-year increase**[47](index=47&type=chunk) - International tobacco companies continued to increase investment in technology, production capacity, and market layout for heated-not-burn (HNB) tobacco products, making new smokeless products a core strategic direction for the industry chain[47](index=47&type=chunk) [Food, Beverage, and Daily Chemical Industry Overview](index=20&type=section&id=Food%2C%20Beverage%20and%20Daily%20Chemical%20Industry%20Overview) Increased value-added in related sectors, driven by health, emotional, and rational consumption trends, necessitates R&D and digital marketing upgrades - Value-added of agricultural and sideline food processing industry increased by **7.5% year-on-year**, food manufacturing industry by **6.3% year-on-year**, and liquor, beverage, and refined tea manufacturing industry by **4.7% year-on-year**[48](index=48&type=chunk) - Health consumption, emotional consumption, and rational consumption became major trends in the food and beverage industry, with consumers favoring low-price, high-quality products with health elements and functional properties[48](index=48&type=chunk) - Consumers in the daily chemical industry showed increased demand for natural, environmentally friendly, and additive-free products, with social media and online stores becoming important sales channels[48](index=48&type=chunk) [Seasoning Industry Overview](index=21&type=section&id=Seasoning%20Industry%20Overview) The seasoning industry faces slower growth and intense competition in the catering sector, requiring differentiation and supply chain optimization - National catering industry revenue reached **RMB 27.48 billion**, a **4.3% year-on-year increase**, but the growth rate decreased by **3.6 percentage points** compared to the prior period, indicating a slower growth cycle for the industry[49](index=49&type=chunk) - Seasoning companies need to enhance digital marketing capabilities, expand online sales channels, strengthen product and service differentiation, and improve supply chain management to adapt to changes in the catering industry[49](index=49&type=chunk) [Performance](index=21&type=section&id=Performance) Group revenue grew by 2.5% to RMB 1.621 billion, with profit attributable to owners surging by 298.1% due to lower prior-year impairment provisions [Group Overall Performance Overview](index=21&type=table&id=Group%20Overall%20Performance%20Overview) | Metric | H1 2025 | H1 2024 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Sales Revenue | Approx. RMB 1.621 billion | Approx. RMB 1.582 billion | +2.5% | | Gross Profit Margin | 43.4% | 44.8% | -1.4 percentage points | | Operating Profit | Approx. RMB 122 million | Approx. RMB 100 million | +21.8% | | Profit attributable to owners of the Company | Approx. RMB 118 million | Approx. RMB 29.662 million | +298.1% | | Basic Earnings Per Share | Approx. RMB 3.66 cents | Approx. RMB 0.92 cents | - | - The significant growth in operating profit and profit attributable to owners was primarily due to the recognition of goodwill impairment losses, other asset impairment losses, and impairment provisions for investments in associates in the prior period, with no similar impairment provisions in the reporting period[50](index=50&type=chunk) [Business Review](index=22&type=section&id=Business%20Review) Business segments showed mixed performance, with tobacco raw materials turning profitable, while flavors and food ingredients and seasoning faced challenges [Flavors and Food Ingredients Business Review](index=22&type=section&id=Flavors%20and%20Food%20Ingredients%20Business%20Review) Revenue declined by 8.6% to RMB 596 million, and operating profit significantly decreased due to demand shifts and share incentive termination costs [Flavors and Food Ingredients Business Performance](index=22&type=table&id=Flavors%20and%20Food%20Ingredients%20Business%20Performance) | Metric | H1 2025 | H1 2024 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Sales Revenue | Approx. RMB 596 million | Approx. RMB 652 million | -8.6% | | Proportion of Group's Total Revenue | Approx. 36.7% | 41.2% | -4.5 percentage points | | Operating Profit | Approx. RMB 18.766 million | Approx. RMB 138 million | -86.4% | | Operating Profit Margin | Approx. 3.2% | Approx. 21.1% | -17.9 percentage points | - The decline in operating profit and operating profit margin was primarily due to changes in product sales structure and the recognition of approximately **RMB 70.056 million** in expenses from the termination of the share incentive scheme[51](index=51&type=chunk) - The group actively explored demand for tobacco flavors in Southeast Asian and Middle Eastern markets, strengthened microwave drying, extraction, and encapsulation technologies, and built flavor base modules, while establishing a comprehensive food technology base in Indonesia to expand Southeast Asian market coverage[51](index=51&type=chunk)[52](index=52&type=chunk) [Tobacco Raw Materials Business Review](index=23&type=section&id=Tobacco%20Raw%20Materials%20Business%20Review) Revenue surged by 45.3% to RMB 238 million, achieving profitability driven by overseas sales growth and subsidiary disposal gains [Tobacco Raw Materials Business Performance](index=23&type=table&id=Tobacco%20Raw%20Materials%20Business%20Performance) | Metric | H1 2025 | H1 2024 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Sales Revenue | Approx. RMB 238 million | Approx. RMB 164 million | +45.3% | | Proportion of Group's Total Revenue | Approx. 14.7% | 10.4% | +4.3 percentage points | | Operating Profit | Approx. RMB 31.342 million | Approx. RMB (3.417) million | Turned profitable | | Operating Profit Margin | Approx. 13.1% | - | - | - The segment turned profitable primarily due to increased revenue and gross profit, and the recognition of a **RMB 13.176 million** gain from the disposal of a subsidiary[53](index=53&type=chunk) - The new reconstituted tobacco production base in Indonesia, with an annual capacity of **3,000 tons**, has been fully completed and is supplying international tobacco company customers in bulk[53](index=53&type=chunk) - The tobacco new materials (tobacco capsules) business actively expanded overseas markets, applying technologies such as drip-speed acceleration and optical AI visual inspection to enhance product delivery capabilities and efficiency, and advanced the development of regionally distinctive flavors[54](index=54&type=chunk) [Fragrance Raw Materials Business Review](index=24&type=section&id=Fragrance%20Raw%20Materials%20Business%20Review) Revenue increased by 7.6% to RMB 405 million, with operating profit significantly up due to lower prior-year impairment provisions and cost control [Fragrance Raw Materials Business Performance](index=24&type=table&id=Fragrance%20Raw%20Materials%20Business%20Performance) | Metric | H1 2025 | H1 2024 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Sales Revenue | Approx. RMB 405 million | Approx. RMB 377 million | +7.6% | | Proportion of Group's Total Revenue | Approx. 25.0% | Approx. 23.8% | +1.2 percentage points | | Operating Profit | Approx. RMB 61.709 million | Approx. RMB (16.333) million | Significant growth | - The significant growth in operating profit was primarily due to the recognition of goodwill and asset impairment of approximately **RMB 49.498 million** in the prior period, with no related impairment provisions recognized in the reporting period[55](index=55&type=chunk) - The group successfully developed new domestic customers by controlling costs and enhancing price competitiveness, and implemented "lean production" initiatives at major factories, introducing intelligent management systems to optimize production processes and reduce costs[55](index=55&type=chunk) [Seasoning Business Review](index=24&type=section&id=Seasoning%20Business%20Review) Revenue remained stable at RMB 382 million, but operating profit decreased by 29.8% due to increased sales network expansion costs [Seasoning Business Performance](index=24&type=table&id=Seasoning%20Business%20Performance) | Metric | H1 2025 | H1 2024 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Sales Revenue | Approx. RMB 382 million | Approx. RMB 389 million | Largely stable | | Proportion of Group's Total Revenue | Approx. 23.5% | Approx. 24.6% | -1.1 percentage points | | Operating Profit | Approx. RMB 38.930 million | Approx. RMB 55.457 million | -29.8% | | Operating Profit Margin | Approx. 10.2% | Approx. 14.3% | -4.1 percentage points | - The decline in operating profit and operating profit margin was primarily due to increased expenses for expanding the sales network[56](index=56&type=chunk) - The group launched new Chinese soup base and soy sauce products, enriching its product portfolio, and focused marketing strategies on "catering channel value innovation" through live streaming and "Jinba Fireworks Flavor" series events to interact with customers[57](index=57&type=chunk) - The number of first-tier distributors reached **956**, and the group began deploying products for overseas market sales, formulating preliminary international expansion plans[57](index=57&type=chunk) [R&D Review](index=25&type=section&id=R%26D%20Review) R&D expenses increased by 3.1% to RMB 125 million, maintaining 7.7% of sales revenue, with all expenses recognized as incurred [R&D Expenses Overview](index=25&type=table&id=R%26D%20Expenses%20Overview) | Metric | H1 2025 | H1 2024 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | R&D Expenses | Approx. RMB 125 million | Approx. RMB 121 million | +3.1% | | R&D Expenses as % of Sales Revenue | 7.7% | 7.7% | Stable | - All R&D expenses were recognized as incurred, with no R&D costs capitalized[58](index=58&type=chunk) [Human Resources and Corporate Culture Development](index=25&type=section&id=Human%20Resources%20and%20Corporate%20Culture%20Development) As of June 30, 2025, the group employed 3,910 people globally, a slight decrease from the end of 2024 - As of June 30, 2025, the group employed **3,910 people** across Mainland China, Hong Kong, Germany, Indonesia, Singapore, and other regions, a decrease from **4,056 people** as of December 31, 2024[59](index=59&type=chunk) [Digital Transformation](index=25&type=section&id=Digital%20Transformation) The group rapidly integrated AI technology into operations and management, enhancing efficiency in various business functions - The group's information technology team integrated AI models into internal work systems, completing high-computing power local deployment to improve employee efficiency in information retrieval and problem-solving[60](index=60&type=chunk) - AI technology was applied in areas such as customer visits, knowledge base establishment, intelligent flavor blending, and quality screening, effectively expanding the operational capabilities and efficiency of various business departments[60](index=60&type=chunk) - The group will continue to monitor the development and application of AI technology to enhance corporate management and deepen its application in business areas like flavor blending[61](index=61&type=chunk) [Outlook](index=26&type=section&id=Outlook) The group maintains a cautious outlook for H2 2025, focusing on strategic initiatives like R&D, AI integration, internationalization, and M&A to drive growth - The group maintains a cautious and conservative outlook for the domestic and international economic and operating environment in the second half of the year, anticipating insufficient domestic consumer confidence and intensified competition, along with uncertainties in overseas market tariff policies[62](index=62&type=chunk) - The group will continue to implement eight strategic measures formulated at the beginning of the year, including strengthening R&D innovation, AI empowerment, accelerating international development, enhancing supply chain management, relying on lean production management, strengthening value-creating corporate culture and employee share incentive schemes, achieving dual-wheel drive through acquisitions and mergers, and strengthening communication with capital markets[62](index=62&type=chunk) - Each business segment will pursue targeted development: Flavors and Food Ingredients will focus on health and natural products; Tobacco Raw Materials will increase overseas market development and investment in new tobacco products; Fragrance Raw Materials will continue to develop new products and reduce costs and increase efficiency; Seasoning will broaden product categories, develop compound seasonings, and strengthen brand building and overseas deployment[63](index=63&type=chunk) [Review of Financial Position](index=27&type=section&id=Review%20of%20Financial%20Position) This section reviews the group's financial performance, including revenue, costs, profitability, and financial resources [Revenue](index=27&type=section&id=Revenue) Group revenue increased by 2.5% to RMB 1.621 billion, primarily driven by tobacco raw materials and fragrance raw materials segments [Revenue Year-on-Year Change](index=27&type=table&id=Revenue%20Year-on-Year%20Change) | Metric | H1 2025 (RMB '000) | H1 2024 (RMB '000) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Total Revenue | 1,621,157 | 1,582,285 | +2.5% | | Tobacco Raw Materials Segment Revenue | 238,424 | 164,103 | +45.3% | | Fragrance Raw Materials Segment Revenue | 405,373 | 376,763 | +7.6% | | Flavors and Food Ingredients Segment Revenue | 595,730 | 651,838 | -8.6% | - Revenue growth was primarily driven by the rapid growth of overseas business in new tobacco materials and the release of production capacity and new customer acquisition in the fragrance raw materials segment[64](index=64&type=chunk) [Cost of Sales](index=27&type=section&id=Cost%20of%20Sales) Cost of sales increased by 5.1% to RMB 917.695 million for the six months ended June 30, 2025 [Cost of Sales Year-on-Year Change](index=27&type=table&id=Cost%20of%20Sales%20Year-on-Year%20Change) | Metric | H1 2025 (RMB '000) | H1 2024 (RMB '000) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Cost of Sales | 917,695 | 873,031 | +5.1% | [Gross Profit and Gross Profit Margin](index=27&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) Gross profit slightly decreased by 0.8% to RMB 703.462 million, with gross profit margin declining by 1.4 percentage points to 43.4% [Gross Profit and Gross Profit Margin Year-on-Year Change](index=27&type=table&id=Gross%20Profit%20and%20Gross%20Profit%20Margin%20Year-on-Year%20Change) | Metric | H1 2025 (RMB '000) | H1 2024 (RMB '000) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Gross Profit | 703,462 | 709,254 | -0.8% | | Gross Profit Margin | 43.4% | 44.8% | -1.4 percentage points | - The decline in gross profit margin was primarily due to intensified market competition and changes in the group's product mix[66](index=66&type=chunk) [Other Income and Other Gains – Net](index=28&type=section&id=Other%20Income%20and%20Other%20Gains%20%E2%80%93%20Net) Net other income and gains increased by RMB 18.962 million to RMB 85.386 million, driven by gains from subsidiary disposal and foreign exchange [Other Income and Other Gains – Net Year-on-Year Change](index=28&type=table&id=Other%20Income%20and%20Other%20Gains%20%E2%80%93%20Net%20Year-on-Year%20Change) | Item | H1 2025 (RMB '000) | H1 2024 (RMB '000) | Change (RMB '000) | | :--- | :--- | :--- | :--- | | Other income and other gains (net) | 85,386 | 66,424 | +18,962 | | Gain/(Loss) on disposal of a subsidiary | 13,176 | (2,592) | +15,768 | | Net foreign exchange gain/(loss) | 10,051 | (17,669) | +27,720 | | Government grants | 52,412 | 68,021 | -15,609 | | Fair value changes of previously held interest in an associate upon becoming a subsidiary | (14,296) | (938) | -13,358 | - The gain on disposal of a subsidiary turning from a loss in the prior period to a gain in the reporting period, and foreign exchange turning from a loss to a gain, were the main drivers of growth[67](index=67&type=chunk) [Selling and Marketing Expenses](index=28&type=section&id=Selling%20and%20Marketing%20Expenses) Selling and marketing expenses increased by 15.6% to RMB 191.158 million, primarily due to expansion of overseas operations [Selling and Marketing Expenses Year-on-Year Change](index=28&type=table&id=Selling%20and%20Marketing%20Expenses%20Year-on-Year%20Change) | Metric | H1 2025 (RMB '000) | H1 2024 (RMB '000) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Selling and Marketing Expenses | 191,158 | 165,416 | +15.6% | | As % of Total Revenue | Approx. 11.8% | Approx. 10.5% | +1.3 percentage points | - The increase in expenses was primarily due to the group's expansion and development of overseas business, leading to an increase in sales and marketing staff and related expenses[68](index=68&type=chunk) [Administrative Expenses](index=28&type=section&id=Administrative%20Expenses) Administrative expenses increased by 3.0% to RMB 472.163 million, mainly due to higher share-based payment expenses [Administrative Expenses Year-on-Year Change](index=28&type=table&id=Administrative%20Expenses%20Year-on-Year%20Change) | Metric | H1 2025 (RMB '000) | H1 2024 (RMB '000) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Administrative Expenses | 472,163 | 458,285 | +3.0% | | Share-based Payment Expenses | 69,859 | 42,578 | +27,281 | | As % of Total Revenue | Approx. 29.1% | 29.0% | Stable | - The increase in administrative expenses was primarily due to the termination of the first phase of the restricted share incentive scheme by subsidiary HuaBao Flavours & Fragrances Co., Ltd., resulting in accelerated vesting treatment and increased recognition of share-based payment expenses[69](index=69&type=chunk) [Operating Profit](index=29&type=section&id=Operating%20Profit) Operating profit increased by 21.8% to RMB 122.194 million, driven by higher other income and reduced impairment provisions [Operating Profit Year-on-Year Change](index=29&type=table&id=Operating%20Profit%20Year-on-Year%20Change) | Metric | H1 2025 (RMB '000) | H1 2024 (RMB '000) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Profit | 122,194 | 100,287 | +21.8% | | Adjusted Operating Profit | 194,954 | 194,438 | +0.3% | | Adjusted Operating Profit Margin | Approx. 12.0% | Approx. 12.3% | -0.3 percentage points | - The increase in operating profit was primarily due to increased net other income and other gains, reduced impairment provisions for receivables, reduced impairment provisions for property, plant and equipment, and the impact of goodwill impairment and intangible asset impairment provisions recognized in the prior period[70](index=70&type=chunk) - The adjusted operating profit margin decreased by **0.3 percentage points**, mainly due to the decline in gross profit margin during the reporting period[71](index=71&type=chunk) [Tax Expense](index=29&type=section&id=Tax%20Expense) Tax expense increased by RMB 23.205 million to RMB 55.918 million, primarily due to higher profit before tax [Tax Expense Year-on-Year Change](index=29&type=table&id=Tax%20Expense%20Year-on-Year%20Change) | Metric | H1 2025 (RMB '000) | H1 2024 (RMB '000) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Tax Expense | 55,918 | 32,713 | +70.9% | - The increase in tax expense was primarily due to the rise in profit before tax during the reporting period[72](index=72&type=chunk) [Profit for the Period](index=30&type=section&id=Profit%20for%20the%20Period) Profit for the period surged by 158.5% to RMB 119.650 million, mainly due to increased other income and reduced impairment provisions [Profit for the Period Year-on-Year Change](index=30&type=table&id=Profit%20for%20the%20Period%20Year-on-Year%20Change) | Metric | H1 2025 (RMB '000) | H1 2024 (RMB '000) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Profit for the Period | 119,650 | 46,286 | +158.5% | | Adjusted Profit for the Period | 192,410 | 188,396 | +2.1% | - The significant increase in profit was primarily attributable to increased net other income and other gains, reduced impairment provisions for receivables, reduced impairment provisions for property, plant and equipment, increased net finance income, and the impact of goodwill impairment, intangible asset impairment provisions, and impairment provisions for investments in associates recognized in the prior period[73](index=73&type=chunk) [Net Current Assets and Financial Resources](index=30&type=section&id=Net%20Current%20Assets%20and%20Financial%20Resources) Net current assets slightly decreased to RMB 6.911 billion, with a shift from cash to bank wealth management products and long-term deposits [Net Current Assets and Financial Resources](index=30&type=table&id=Net%20Current%20Assets%20and%20Financial%20Resources) | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Net Current Assets | 6,910,690 | 7,034,542 | | Cash and Bank Balances | 4,501,462 | 5,562,231 | | Bank Wealth Management Products (Financial assets at fair value through profit or loss) | 1,372,909 | 649,498 | | Long-term Bank Deposits (Other non-current assets) | 253,684 | 51,435 | - The group primarily funds its operations through operating activities, maintaining a sound financial position[75](index=75&type=chunk) - Over **74%** of cash and bank balances are held in RMB[75](index=75&type=chunk) [Bank Borrowings and Gearing Ratio](index=31&type=section&id=Bank%20Borrowings%20and%20Gearing%20Ratio) Total bank borrowings decreased to RMB 155.160 million, with a lower gearing ratio of 1.3% and reduced average interest rates [Bank Borrowings and Gearing Ratio](index=31&type=table&id=Bank%20Borrowings%20and%20Gearing%20Ratio) | Metric | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Total Bank Borrowings | 155,160 | 194,000 | | Secured Borrowings | 22,000 | 54,000 | | Unsecured Borrowings | 133,160 | 140,000 | | Gearing Ratio | 1.3% | 1.6% | - The average annual interest rate for secured borrowings was **4.0%** (H1 2024: 4.2%), and for unsecured borrowings was **1.4%** (H1 2024: 2.6%), both showing a decrease[76](index=76&type=chunk) [Investing Activities](index=31&type=section&id=Investing%20Activities) Net cash used in investing activities was RMB 909.004 million, primarily for purchasing bank wealth management products and long-term deposits [Investing Activities Cash Flow](index=31&type=table&id=Investing%20Activities%20Cash%20Flow) | Metric | H1 2025 (RMB '000) | H1 2024 (RMB '000) | | :--- | :--- | :--- | | Net Cash Used in Investing Activities | 909,004 | (39,886) | - Investing activities primarily include purchases of property, plant and equipment; investments in financial assets; and acquisition activities related to strategic development strategies[77](index=77&type=chunk) - Net cash outflow from investing activities during the reporting period was mainly due to the purchase of bank wealth management products and deposits into long-term bank accounts[77](index=77&type=chunk) [Financing Activities](index=31&type=section&id=Financing%20Activities) Net cash used in financing activities was RMB 301.080 million, mainly for repaying bank loans and paying dividends [Financing Activities Cash Flow](index=31&type=table&id=Financing%20Activities%20Cash%20Flow) | Metric | H1 2025 (RMB '000) | H1 2024 (RMB '000) | | :--- | :--- | :--- | | Net Cash Used in Financing Activities | 301,080 | 444,621 | - This primarily included repayment of bank loans of **RMB 227 million**, cash dividends paid to shareholders of **RMB 147.998 million**, cash dividends paid to non-controlling interests of **RMB 31.171 million**, and new bank loans of **RMB 126.260 million**[78](index=78&type=chunk) [Trade Receivables Turnover Days](index=31&type=section&id=Trade%20Receivables%20Turnover%20Days) Average trade receivables turnover days remained stable at 81 days for the six months ended June 30, 2025 [Trade Receivables Turnover Days](index=31&type=table&id=Trade%20Receivables%20Turnover%20Days) | Metric | H1 2025 (Days) | H1 2024 (Days) | | :--- | :--- | :--- | | Average Trade Receivables Turnover Days | 81 | 83 | - The group generally grants customers a credit period of approximately **0 to 180 days**, depending on the customer's business volume and length of business relationship[79](index=79&type=chunk) [Trade Payables Turnover Days](index=31&type=section&id=Trade%20Payables%20Turnover%20Days) Average trade payables turnover days remained stable at 52 days for the six months ended June 30, 2025 [Trade Payables Turnover Days](index=31&type=table&id=Trade%20Payables%20Turnover%20Days) | Metric | H1 2025 (Days) | H1 2024 (Days) | | :--- | :--- | :--- | | Average Trade Payables Turnover Days | 52 | 51 | - Suppliers grant the group a credit period ranging from **0 to 180 days**[80](index=80&type=chunk) [Inventories and Inventory Turnover Days](index=32&type=section&id=Inventories%20and%20Inventory%20Turnover%20Days) Inventory balance increased to RMB 916.336 million, while inventory turnover days decreased to 177 days due to lower average inventory and higher cost of sales [Inventories and Inventory Turnover Days](index=32&type=table&id=Inventories%20and%20Inventory%20Turnover%20Days) | Metric | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Inventory Balance | 916,336 | 893,330 | | Inventory Turnover Days (Days) | 177 | 209 (Prior Period) | - The decrease in inventory turnover days was primarily due to a decrease in the average inventory balance compared to the prior period, while the cost of sales increased year-on-year in the reporting period[81](index=81&type=chunk) [Foreign Exchange and Exchange Rate Risk](index=32&type=section&id=Foreign%20Exchange%20and%20Exchange%20Rate%20Risk) The group's revenue is primarily RMB-denominated, with limited foreign currency exposure from imported raw materials and equipment - The group's principal operations are in Mainland China, with the vast majority of revenue settled in RMB, and only a portion of imported raw materials and equipment settled in foreign currencies such as USD or EUR[82](index=82&type=chunk) - Management agrees with the People's Bank of China's view that the RMB exchange rate has the conditions to remain generally stable within a reasonable and balanced range[82](index=82&type=chunk) [Pledge of Assets](index=32&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, certain properties, right-of-use assets, and intangible assets totaling RMB 25.504 million were pledged for secured bank loans [Pledge of Assets Situation](index=32&type=table&id=Pledge%20of%20Assets%20Situation) | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Total Book Value of Pledged Assets | 25,504 | 43,063 | | Secured Bank Loans | 22,000 | 54,000 | - Pledged assets include properties, right-of-use assets, and intangible assets of Hunan Jiapin Jiawei Technology Development Group Co., Ltd. and its subsidiaries[83](index=83&type=chunk) [Capital Commitments](index=32&type=section&id=Capital%20Commitments) Capital commitments for contracted purchases of property, plant, equipment, and investments increased to RMB 116.093 million [Capital Commitments](index=32&type=table&id=Capital%20Commitments) | Metric | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Capital Commitments | 116,093 | 97,854 | [Contingent Liabilities](index=32&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the group had no significant contingent liabilities - As of June 30, 2025, the group had no significant contingent liabilities based on information available to the Board[85](index=85&type=chunk) [Other Significant Matters](index=33&type=section&id=Other%20Significant%20Matters) This section covers key events and disclosures, including the use of subsidiary IPO proceeds, termination of a share incentive scheme, and profit guarantee issues [Use of Proceeds from Subsidiary](index=33&type=section&id=Use%20of%20Proceeds%20from%20Subsidiary) HuaBao Flavours & Fragrances Co., Ltd. (HuaBao) utilized RMB 953 million of its IPO proceeds, with project timelines adjusted to align with actual progress - HuaBao Flavours & Fragrances Co., Ltd.'s IPO raised a total of approximately **RMB 2.377 billion**, with net proceeds of approximately **RMB 2.312 billion** after deducting issuance expenses[86](index=86&type=chunk) [Overview of HuaBao IPO Proceeds Utilization](index=33&type=table&id=Overview%20of%20HuaBao%20IPO%20Proceeds%20Utilization) | Project | Unused Proceeds as of Dec 31, 2024 (RMB million) | Proceeds Used in H1 2025 (RMB million) | Unused Proceeds as of June 30, 2025 (RMB million) | | :--- | :--- | :--- | :--- | | HuaBao Sci-Tech Innovation Center Project | 439.82 | 0.80 | 439.02 | | HuaBao Digital Transformation Project | 31.19 | 0.99 | 30.20 | | Unused Proceeds Special Account | 889.56 | — | 889.56 | | **Total** | **1,360.57** | **1.79** | **1,358.78** | - The expected completion date for the HuaBao Sci-Tech Innovation Center Project has been extended to **June 30, 2029**, and the HuaBao Digital Transformation Project to **December 31, 2026**, to accommodate land procedures and actual project progress[88](index=88&type=chunk)[89](index=89&type=chunk) [Termination of Subsidiary's Share Incentive Scheme](index=36&type=section&id=Termination%20of%20Subsidiary%27s%20Share%20Incentive%20Scheme) HuaBao's share incentive scheme was terminated, leading to accelerated vesting treatment and a RMB 70.06 million share-based payment expense in H1 2025 - The Board of Directors and shareholders of HuaBao Flavours & Fragrances Co., Ltd. have approved the termination of its share incentive scheme[91](index=91&type=chunk) - Upon termination, all unvested restricted shares will not vest and will be subject to accelerated vesting treatment in accordance with relevant HKFRS provisions[92](index=92&type=chunk) - This termination resulted in the recognition of approximately **RMB 70.06 million** in share-based payment expenses in H1 2025, with the final impact on the net profit of the Company and HuaBao subject to final audit results[92](index=92&type=chunk) [Disclosure Regarding Failure to Meet Profit Guarantee under Listing Rule 14.36B](index=36&type=section&id=Disclosure%20Regarding%20Failure%20to%20Meet%20Profit%20Guarantee%20under%20Listing%20Rule%2014.36B) Shanghai Yifang Agricultural Technology Co., Ltd. failed to meet its profit guarantee, leading HuaBao to initiate arbitration for compensation of RMB 606 million - HuaBao Flavours & Fragrances Co., Ltd. acquired a **27% equity interest** in Shanghai Yifang Agricultural Technology Co., Ltd. in 2022, making it an indirect non-wholly owned subsidiary[94](index=94&type=chunk) [Shanghai Yifang Performance Commitment vs. Actual Net Loss](index=36&type=table&id=Shanghai%20Yifang%20Performance%20Commitment%20vs.%20Actual%20Net%20Loss) | Year | Committed Net Profit (RMB '000) | Actual Net Loss (RMB '000) | Performance Difference (RMB '000) | | :--- | :--- | :--- | :--- | | 2022 | Not less than 41,000 | 42,195.6 | 83,195.6 | | 2023 | Not less than 55,000 | 65,755.9 | 120,755.9 | | 2024 | Not less than 74,000 | 70,036.0 | 144,036.0 | - As Shanghai Yifang failed to meet its performance commitment, HuaBao has submitted an arbitration application to the Shanghai International Arbitration Center, demanding Qian Rong and Huang Jinrong pay performance compensation of approximately **RMB 606 million**, with the total arbitration claim temporarily amounting to **RMB 636 million**[97](index=97&type=chunk) - As of the announcement date, the arbitration hearing process has not yet commenced, and the group cannot accurately predict the final outcome or assess the impact on its financial position[98](index=98&type=chunk) [Events After Reporting Period](index=39&type=section&id=Events%20After%20Reporting%20Period) No significant events occurred after the reporting period, other than those already disclosed in this announcement - No significant events occurred after the reporting period[99](index=99&type=chunk) [Corporate Governance](index=39&type=section&id=Corporate%20Governance) This section details the company's adherence to corporate governance principles, including compliance with the code and director's securities transactions [Compliance with Corporate Governance Code](index=39&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company generally complied with the Corporate Governance Code, with an exception for the combined roles of Chairman and CEO - The Company has complied with the Corporate Governance Code set out in Appendix C1 of the Listing Rules, but did not fully comply with Code Provision C.2.1 regarding the segregation of roles between the Chairman and Chief Executive Officer[100](index=100&type=chunk) - Ms. Zhu Linyao, the Chairman of the Board and Executive Director, has also served as the Chief Executive Officer since April 9, 2013, and the Board believes this arrangement does not undermine the balance of power and authority[100](index=100&type=chunk) [Model Code for Securities Transactions by Directors of Listed Issuers](index=39&type=section&id=Model%20Code%20for%20Securities%20Transactions%20by%20Directors%20of%20Listed%20Issuers) The company adopted and confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers during the reporting period - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules and confirmed that the directors have complied with the said code for the six months ended June 30, 2025[101](index=101&type=chunk) [Interim and Special Dividends](index=39&type=section&id=Interim%20and%20Special%20Dividends) The Board declared an interim dividend of HK 1.2 cents and a special dividend of HK 3.2 cents per share, payable on October 10, 2025 [Interim and Special Dividend Declaration](index=39&type=table&id=Interim%20and%20Special%20Dividend%20Declaration) | Dividend Type | 2025 (Per Share) | 2024 (Per Share) | | :--- | :--- | :--- | | Interim Dividend | HK 1.2 cents | HK 0.3 cents | | Special Dividend | HK 3.2 cents | HK 3.2 cents | - The interim and special dividends are expected to be paid on **October 10, 2025**, to shareholders whose names appear on the Company's register of members on **September 19, 2025**[102](index=102&type=chunk) [Closure of Register of Members](index=40&type=section&id=Closure%20of%20Register%20of%20Members) The register of members will be closed from September 16 to September 19, 2025, to determine eligibility for interim and special dividends - The register of members will be closed from **September 16 to September 19, 2025** (both dates inclusive), to determine shareholders' eligibility for the interim and special dividends[103](index=103&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=40&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities during the reporting period - During 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[104](index=104&type=chunk) - As of June 30, 2025, the Company did not hold any treasury shares[104](index=104&type=chunk) [Audit Committee](index=40&type=section&id=Audit%20Committee) The Audit Committee, comprising independent non-executive directors, reviewed and approved the unaudited condensed consolidated interim financial information - The Audit Committee comprises Mr. Li Luk Shiu, Mr. Jonathan Jun YAN, and Mr. Hou Haitao, all of whom are independent non-executive directors[105](index=105&type=chunk) - The Audit Committee has reviewed and approved the unaudited condensed consolidated interim financial information of the group for the six months ended June 30, 2025[105](index=105&type=chunk) [Publication of Interim Results and Interim Report](index=40&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report) The interim results announcement is available on HKEX and the company's website, with the interim report to follow - This interim results announcement has been published on the website of The Stock Exchange of Hong Kong Limited (www.hkexnews.hk) and the Company's website (www.hbglobal.com)[106](index=106&type=chunk) - The Company's 2025 interim report will be dispatched to shareholders and published on the aforementioned websites in due course[106](index=106&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦 不發表任何聲明，並明確表示概不就因本公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何 損失承擔任何責任。 HUABAO INTERNATIONAL HOLDINGS LIMITED 華 寶 國 際 控 股 有 限 公 司 * （於百慕達註冊成立之有限公司） （股份代號：00336） 須予披露交易 進一步認購金融產品 進一步認購金融產品 董事會謹此公佈，於2025年8月13日（交易時間後），本集團成員公司已向中國 浙商銀行認購且於本公告日期仍未到期的該等金融產品合計投資總額為人民 幣535,000,000元。 於本公告日期，董事確認（i）除該等金融產品仍未到期外，其餘的所有向中國 浙商銀行認購的金融產品均已按照各自的條款悉數贖回；（ii）本集團相信認購 該等金融產品各自均獲得合理利息；及（iii）認購該等金融產品將不會對本集 團的財務狀況造成任何不利影響。 上市規則的涵義 由於根據上市規則第14.07條就本集團成員公司於本公告日期向中國浙商銀行 認購該等金融產品仍未到期投資總額的最高適用百分比率超過5%但低於2 ...

Key Points - The top three stocks with net inflows from southbound funds are Yingfu Fund (02800) with 1.184 billion, Alibaba-W (09988) with 730 million, and Hang Seng China Enterprises (02828) with 556 million [1] - The top three stocks with net outflows are WuXi Biologics (02269) with -539 million, Hua Hong Semiconductor (01347) with -509 million, and SMIC (00981) with -432 million [1] - In terms of net inflow ratio, Shanghai Industrial Holdings (00363) leads with 63.56%, followed by Bank of China Aviation Leasing (02588) with 60.26%, and Sunshine Insurance (06963) with 55.37% [1] - The top three stocks with the highest net outflow ratios are GX China (03040) at -100.00%, Southern Hang Seng Index ETF (03037) at -65.52%, and Sichuan Chengyu Expressway (00107) at -49.23% [1] Top 10 Net Inflows - Yingfu Fund (02800) had a net inflow of 1.184 billion, representing a 16.79% increase, closing at 25.380 [2] - Alibaba-W (09988) saw a net inflow of 730 million, with a 10.34% increase, closing at 116.300 [2] - Hang Seng China Enterprises (02828) had a net inflow of 556 million, with an 8.70% increase, closing at 91.160 [2] - Xiaomi Group-W (01810) had a net inflow of 473 million, with a 6.69% increase, closing at 51.250 [2] - Zai Ding Pharmaceutical (09688) had a net inflow of 429 million, with a 26.73% increase, closing at 27.200 [2] Top 10 Net Outflows - WuXi Biologics (02269) experienced a net outflow of -539 million, with a -33.02% decrease, closing at 29.360 [2] - Hua Hong Semiconductor (01347) had a net outflow of -509 million, with a -21.78% decrease, closing at 44.000 [2] - SMIC (00981) saw a net outflow of -432 million, with a -3.98% decrease, closing at 48.660 [2] - Kuaishou-W (01024) had a net outflow of -292 million, with a -14.76% decrease, closing at 79.150 [2] - Juzi Biotechnology (02367) experienced a net outflow of -220 million, with a -24.75% decrease, closing at 59.000 [2] Net Inflow Ratios - Shanghai Industrial Holdings (00363) had a net inflow ratio of 63.56%, with a net inflow of 11.36 million, closing at 14.870 [3] - Bank of China Aviation Leasing (02588) had a net inflow ratio of 60.26%, with a net inflow of 3.56 million, closing at 73.500 [3] - Sunshine Insurance (06963) had a net inflow ratio of 55.37%, with a net inflow of 2.48 million, closing at 3.790 [3] - Poly Property (06049) had a net inflow ratio of 52.60%, with a net inflow of 1.14 million, closing at 34.880 [3] Net Outflow Ratios - GX China (03040) had a net outflow ratio of -100.00%, with a net outflow of -7100.00, closing at 35.460 [3] - Southern Hang Seng Index ETF (03037) had a net outflow ratio of -65.52%, with a net outflow of -724,900, closing at 25.400 [3] - Sichuan Chengyu Expressway (00107) had a net outflow ratio of -49.23%, with a net outflow of -380,740, closing at 4.920 [3]

Group 1 - The core viewpoint of the article highlights that Huabao International (00336) is expected to report a significant increase in pre-tax profit for the first half of the year, with estimates ranging from 151.2 million to 177.2 million RMB, representing a year-on-year growth of approximately 91.3% to 124.3% [1] - The increase in profit is attributed to the absence of impairment provisions that were present in the same period last year, which included goodwill impairment of approximately 29.3 million RMB, other asset impairment of about 20.2 million RMB, and investment impairment provisions of around 48 million RMB from associated companies [1] - Huabao International is recognized as a leading player in the domestic tobacco flavoring industry, particularly in the context of heated non-combustible (HNB) tobacco products, which require significantly more flavoring agents compared to traditional tobacco [1] Group 2 - According to Guosheng Securities, HNB tobacco products have a lower heating temperature than traditional cigarettes, which leads to a reduction in the flavor components produced through thermal synthesis and pyrolysis, necessitating the addition of more flavoring agents to replicate the taste of traditional cigarettes [1] - For the same quality of tobacco, the amount of flavoring required for HNB tobacco is 6 to 10 times that of traditional tobacco, although the length of HNB tobacco sticks is half that of traditional cigarettes, resulting in a per-stick flavoring requirement that is 3 to 5 times higher than that of traditional tobacco [1]

Group 1 - Huabao International (00336) saw a nearly 5% increase in stock price, currently up 4.51% at HKD 3.71, with a trading volume of HKD 38.9236 million [1] - The company plans to hold a board meeting on August 18 to approve its interim results, with a projected pre-tax profit of RMB 151.2 million to RMB 177.2 million for the first half of the year, representing a year-on-year increase of approximately 91.3% to 124.3% [1] - The significant profit increase is attributed to the absence of impairment provisions for goodwill and other assets, which were approximately RMB 29.3 million and RMB 20.2 million respectively in the same period last year, along with a RMB 48 million impairment provision for investments in associates [1] Group 2 - Huabao International is a leading player in the domestic tobacco flavoring industry [1] - According to Guosheng Securities, heated non-combustible (HNB) tobacco requires significantly more flavoring agents compared to traditional cigarettes, with the amount needed being 6 to 10 times greater for the same quality of tobacco [1] - Considering that HNB tobacco sticks are half the length of traditional cigarettes, the overall flavoring agent usage per stick is 3 to 5 times that of traditional tobacco [1]

格隆汇8月6日丨华宝国际(00336.HK)宣布，公司董事会会议将于2025年8月18日举行，藉以（其中包 括）批准公司及其附属公司截至2025年6月30日止六个月的未经审核中期业绩，以及考虑派发中期股息 （如有）。 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發 表任何聲明，並明確表示，概不就因本公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承 擔任何責任。 董事會會議日期 華寶國際控股有限公司（「本公司」）董事會（「董事會」）宣佈本公司董事會會議將 於2025年8月18日舉行，藉以（其中包括）批准本公司及其附屬公司截至2025年6月30日 止六個月的未經審核中期業績，以及考慮派發中期股息（如有）。 承董事會命 華寶國際控股有限公司 執行董事 潘昭國 香港，2025年8月6日 於本公告日期，董事會由六名執行董事包括朱林瑤女士、林嘉宇先生、夏利群先生、潘昭國先生、林嘉炘女士 及蔡文霞女士；以及三名獨立非執行董事包括李祿兆先生、Jonathan Jun YAN先生及侯海濤先生組成。 * 僅供識別 HUABAO INTERNATIONAL HOLDINGS LIMITED 華 寶 國 際 控 股 有 限 公 司 * （於百慕達註冊成立之有限公司） （股份代號：00336） ...

FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 華寶國際控股有限公司（於百慕達註冊成立之有限公司） 本月底法定/註冊股本總額： HKD 500,000,000 第 1 頁 共 10 頁 v 1.1.1 FF301 II. 已發行股份及/或庫存股份變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00336 | 說明 | 華寶國際 | | | | | | | | 已發行股份（不包括庫存股份）數目 | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | 3,229,926,876 | | 0 | | 3,229,926,876 | | 增加 / 減少 (-) | | | 0 | | 0 | | | | 本月底結存 | | | 3,229,926,876 | | ...

智通财经APP讯，华宝国际(00336)发布公告，于2025年7月29日(交易时间后)，集团成员公司已向中国 浙商银行认购且于本公告日期仍未到期的该等金融产品合计投资总额为人民币6.15亿元。 ...

格隆汇7月29日丨华宝国际(00336.HK)发布公告，2025年7月29日，集团成员公司已向中国浙商银行认购 且于本公告日期仍未到期的该等金融产品合计投资总额为人民币6.15亿元。 ...