Core Viewpoint - The company has entered into a non-binding memorandum of understanding with Shenzhen Huixin Equity Investment Management Co., Ltd. to establish a strategic cooperation framework for AIoT innovation enterprise incubation [1] Group 1: Strategic Partnership - The memorandum aims to leverage the company's strengths in artificial intelligence chip applications, solution design, and supply chain integration alongside NARFD's research, incubation, and capital resources [1] - This collaboration is expected to create a robust support system for AIoT startups, enhancing the overall ecosystem [1] Group 2: Industry Positioning - The partnership is anticipated to strengthen the company's position in the artificial intelligence hardware industry and expand its market coverage [1] - The cooperation is seen as a means to accelerate the commercialization of innovative artificial intelligence products and establish a foundation for long-term strategic partnerships and sustainable development [1]

Core Viewpoint - The company has entered into a non-binding memorandum of understanding with Shenzhen Huixin Equity Investment Management Co., Ltd. to establish a strategic cooperation framework for AIoT innovation incubation [1] Group 1: Strategic Partnership - The memorandum aims to leverage the company's strengths in AI chip applications, solution design, and supply chain integration alongside NARFD's research, incubation, and capital resources [1] - NARFD is a key operational unit under the National 5G High-Frequency Device Innovation Center and is established under the guidance of the Ministry of Industry and Information Technology [1] Group 2: Industry Impact - The collaboration is expected to create a complete industrial ecosystem for AIoT startups by combining technological, capital, industrial resources, and government support [1] - This partnership is anticipated to strengthen the company's position in the AI hardware industry, expand market coverage, and accelerate the commercialization of innovative AI products [1]

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，概不對因本公告全部或任何部分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。 INGDAN, INC. 硬 蛋 創 新 （ 於開曼群島註冊成立的有限公司） （股份代號：400） 有關共同開展AIoT創新企業孵化平台之諒解備忘錄 承董事會命 硬蛋創新（「本公司」，連同其附屬公司統稱「本集團」）董事會（「董事會」）欣然宣佈，本公司 已於 2025 年 11 月6 日 與深 圳市 匯芯 股權 投資 管理 有限 公司（「匯 芯投 資」）訂 立一份不 具法 律 約束力之諒解備忘錄（ 該「諒解備忘錄」）。匯芯投資為於中華人民共和國成立之公司，並為 國家5 G中高頻器件創新中心（「NARFD」）之核心運營單位。 該 諒 解 備 忘 錄 旨 在 確 立 本 集 團 與 NARFD 之 戰 略 合 作 框 架 ， 共 同 開 展 AIoT 創 新 企 业 孵 化 平 台 。 本 集 團 將 運 用 其 在 人 工 智 能 芯 片 應 用 、 方 案 設 計 及 供 應 鏈 整 合 方 面 之 優 ...

Investment Rating - The report maintains a "Buy" rating for the company [5] Core Insights - The company is positioned as a rare AI computing chip supplier, leveraging self-developed AI large language models and industry knowledge to provide cutting-edge chip application solutions and supply chain management services [1][9] - The company achieved significant revenue growth in the first half of 2025, with revenue reaching 6.676 billion RMB, a year-on-year increase of 54.5%, and a net profit of 132 million RMB, up 17.2% year-on-year [1][20] - The report highlights the explosive demand for AI-driven chips, with global computing power expected to reach 14,130 EFlops by 2029, and the AI chip market projected to grow to 400 billion USD by 2027 [2][9] Summary by Sections 1. AI Computing Demand and Revenue Growth - The company has established a comprehensive chip-end-cloud industry chain layout, capturing explosive demand for AI computing, resulting in a revenue increase of 54.5% in the first half of 2025 [1][20] - The company operates through two main platforms: KETON Technology, which serves as a core supplier in the AI computing supply chain, and Hard Egg Technology, focusing on AIoT data and technology services [1][17] 2. AI Chip Market Dynamics - The report emphasizes the scarcity of high-end computing resources driven by AI large models, with demand for computing power increasing exponentially [2][9] - The global AI chip market is expected to grow significantly, with infrastructure spending projected to reach 3-4 trillion USD by 2030 [2][9] 3. Physical AI and Technological Advancements - The emergence of physical AI is anticipated to transform industries valued at 50 trillion USD, with NVIDIA's platforms aiding in overcoming technological barriers [3][9] - The company is positioned to leverage NVIDIA's Jetson series products to provide AI solutions in robotics and other applications [3][9] 4. Self-Developed SOM and Growth Potential - The company is developing self-researched System on Module (SOM) products, which are expected to create a second growth curve by expanding into larger edge applications [4][9] - The SOM market is projected to exceed 3.22 billion USD by 2025 and 7.76 billion USD by 2035, indicating significant growth potential [4][9] 5. Financial Projections and Valuation - The company is expected to achieve revenues of 13.36 billion RMB, 20.03 billion RMB, and 27.08 billion RMB for the years 2025, 2026, and 2027 respectively, with corresponding net profits of 250 million RMB, 379 million RMB, and 502 million RMB [9][11] - The report highlights the company's valuation advantages, with projected P/E ratios of 16.7, 11.2, and 8.4 for the years 2025, 2026, and 2027 [9][11]

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10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: 硬蛋創新 (根據開曼群島法律註冊成立的有限公司) 呈交日期: 2025年11月3日 I. 法定/註冊股本變動 | 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) | 00400 | 說明 | | | | | | | | | 法定/註冊股份數目 | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | 500,000,000,000 | USD | 0.0000001 | USD | | 50,000 | | 增加 / 減少 (-) | | | 0 | | USD | | | | 本月底結存 | | 500,000,000,000 | USD | 0.0000001 | USD | | 50,000 | 本月底法定/註冊股本總額： US ...

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 本月底法定/註冊股本總額： USD 50,000 第 1 頁 共 10 頁 v 1.1.1 截至月份: 2025年9月30日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 硬蛋創新 (根據開曼群島法律註冊成立的有限公司) 呈交日期: 2025年9月30日 I. 法定/註冊股本變動 | 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) | 00400 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 500,000,000,000 | USD | 0.0000001 | USD | | 50,000 | | 增加 / 減少 (-) | | | 0 | | | USD | | | | 本月底結存 | | | 500,00 ...

[Company Information](index=3&type=section&id=Company%20Information) This section provides essential corporate details, including board composition, office locations, share registrars, key personnel, and listing information [Board of Directors](index=3&type=section&id=Board%20of%20Directors) This chapter lists the company's board members, including executive and independent non-executive directors, and the chairs of the audit, remuneration, and nomination committees - The Board of Directors includes executive directors Kang Jingwei (CEO and Chairman), Hu Linxiang (CFO), Guo Lihua, and independent non-executive directors Ye Xin, Ma Qiyuan, and Hao Chunyi[7](index=7&type=chunk)[8](index=8&type=chunk) - The Audit Committee is chaired by Hao Chunyi, the Remuneration Committee by Ma Qiyuan, and the Nomination Committee by Ye Xin[7](index=7&type=chunk)[8](index=8&type=chunk) [Registered Office and Principal Places of Business](index=3&type=section&id=Registered%20Office%20and%20Principal%20Places%20of%20Business) This chapter provides the company's registered office address in the Cayman Islands and its principal places of business in Shenzhen, China, and Hong Kong - The registered office is located at Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman KY1-1111, Cayman Islands[7](index=7&type=chunk)[8](index=8&type=chunk) - The principal place of business in China is on the 11th Floor, Microsoft Kexun Building, No. 55 Gaoxin South 9th Road, Nanshan District, Shenzhen[10](index=10&type=chunk) - The principal place of business in Hong Kong is Unit D, 6th Floor, Block 2, Tins Centre, No. 3 Hung Cheung Road, Tuen Mun, New Territories[10](index=10&type=chunk) [Share Registrar and Hong Kong Share Registrar](index=4&type=section&id=Share%20Registrar%20and%20Hong%20Kong%20Share%20Registrar) This chapter specifies the company's principal share registrar in the Cayman Islands and its Hong Kong share registrar - The principal share registrar is Conyers Trust Company (Cayman) Limited[10](index=10&type=chunk)[11](index=11&type=chunk) - The Hong Kong share registrar is Computershare Hong Kong Investor Services Limited[12](index=12&type=chunk)[13](index=13&type=chunk) [Company Secretary, Authorized Representatives, Auditor, Legal Advisers and Principal Bankers](index=4&type=section&id=Company%20Secretary%2C%20Authorized%20Representatives%2C%20Auditor%2C%20Legal%20Advisers%20and%20Principal%20Bankers) This chapter provides information on the company's key functional personnel and external partners, including the company secretary, authorized representatives, auditor, legal advisers, and principal bankers - The Company Secretary is Hu Linxiang, and the Authorized Representatives are Kang Jingwei and Hu Linxiang[10](index=10&type=chunk)[11](index=11&type=chunk) - The Auditor is Shinewing (HK) CPA Limited[10](index=10&type=chunk)[11](index=11&type=chunk) - Legal Advisers include Skadden, Arps, Slate, Meagher & Flom (Hong Kong and US law), AnJie Broad Law Firm (PRC law), and Conyers Dill & Pearman (Cayman) Limited (Cayman Islands law)[12](index=12&type=chunk) - Principal Bankers include Bank of China (Hong Kong) Limited and Standard Chartered Bank (Hong Kong) Limited[12](index=12&type=chunk) [Listing Information and Company Website](index=5&type=section&id=Listing%20Information%20and%20Company%20Website) This chapter provides the company's listing information and official website address - The company's stock code is **00400**, listed on the Stock Exchange[13](index=13&type=chunk) - The company's website is www.ingdangroup.com[13](index=13&type=chunk) [Executive Summary](index=6&type=section&id=Executive%20Summary) This section provides a high-level overview of the company's key financial and operational highlights [Financial Performance Summary](index=6&type=section&id=Financial%20Performance%20Summary) This chapter outlines the company's key financial performance in H1 2025 compared to the same period in 2024, showing significant growth in revenue, gross profit, operating profit, profit for the period, and earnings per share Financial Performance (RMB million) | Indicator | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 6,676.5 | 4,321.4 | 54.5% | | Gross Profit | 585.9 | 457.6 | 28.0% | | Operating Profit | 275.6 | 228.2 | 20.8% | | Profit for the Period | 190.0 | 169.1 | 12.4% | | Profit Attributable to Equity Holders of the Company | 132.1 | 112.7 | 17.2% | | Earnings Per Share (Basic) | 0.086 | 0.082 | 4.9% | | Earnings Per Share (Diluted) | 0.086 | 0.082 | 4.9% | [Management Discussion and Analysis](index=7&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an in-depth analysis of the group's business operations, financial performance, and future strategic direction [Business Review and Outlook](index=7&type=section&id=Business%20Review%20and%20Outlook) This section reviews the Group's overall business and financial performance in AI chips and AIoT, highlighting AI-driven market opportunities and the Group's strategy for integrating AI chip resources, providing application solutions, deepening internal AI operations, and building a unique business closed-loop. It also outlines future development goals through solution-driven innovation, transaction-driven value, and data-driven future - The Group is positioned as an application solution platform group with AI chips as its foundation, with core businesses being Cogobuy Technology (a technical service platform for the chip industry) and IngDan Technology (a platform providing AIoT technology and services)[15](index=15&type=chunk)[16](index=16&type=chunk) - The rapid penetration of AI applications is the core driver of global chip market growth, with generative AI, large models, and multimodal applications accelerating commercialization, leading to a significant increase in demand for high-performance GPUs, AI accelerators, and advanced memory chips in data centers[19](index=19&type=chunk)[21](index=21&type=chunk) - WSTS has revised its forecast for the 2025 global chip market size upwards to **USD728 billion** (a **15.4% year-on-year increase**), with a further **9.9% growth to USD800 billion** expected in 2026[19](index=19&type=chunk)[22](index=22&type=chunk) [Overall Business and Financial Performance of the Group](index=7&type=section&id=Overall%20Business%20and%20Financial%20Performance%20of%20the%20Group) The Group achieved significant revenue and profit growth during the reporting period, driven by strong demand for AI computing power and the gradual recovery of certain markets, particularly in AI chip-related industries - Revenue growth: Revenue for the reporting period was approximately **RMB6,676.5 million**, a **54.5% increase** compared to the same period in 2024[15](index=15&type=chunk)[17](index=17&type=chunk) - Profit growth: Gross profit was approximately **RMB585.9 million** (a **28.0% year-on-year increase**), operating profit was approximately **RMB275.6 million** (a **20.8% year-on-year increase**), and profit after tax was approximately **RMB190.0 million** (a **12.4% year-on-year increase**)[15](index=15&type=chunk)[17](index=17&type=chunk) [Market Environment and Group Strategy](index=8&type=section&id=Market%20Environment%20and%20Group%20Strategy) The global chip market is driven by the rapid penetration of AI applications, with strong demand in cloud computing and AI edge applications. The Group precisely seizes opportunities across the entire chain from AI computing infrastructure to smart terminal applications, building a unique business closed-loop and competitive barrier by integrating AI chip resources, providing efficient application solutions, and intelligent internal operations - Global chip market size: In H1 2025, the global chip market reached **USD346 billion**, a **18.9% year-on-year increase**, with AI-related demand being a significant contributor[19](index=19&type=chunk)[21](index=21&type=chunk) - Group's strategic advantages: Integrates top global AI chip resources, building an AI computing hardware library covering mainstream domestic and international manufacturers, forming a significant supply chain advantage[20](index=20&type=chunk)[23](index=23&type=chunk) - Value leap: Achieved a value leap from "chip selection" to "chip application," providing "out-of-the-box" core technology modules, significantly shortening customer R&D cycles[25](index=25&type=chunk)[27](index=27&type=chunk) - Unique business closed-loop: Built a business closed-loop from "chip trading" to "technology integration," providing efficient supply chain services, in-depth technical solutions, and customized products, strengthening customer stickiness[26](index=26&type=chunk)[29](index=29&type=chunk) [Cogobuy Technology Business](index=10&type=section&id=Cogobuy%20Technology%20Business) Cogobuy Technology, as a core supplier in the AI computing power supply chain, distributes products from over 80 chip original manufacturers and provides chip application technical solutions and supply chain management services. Through self-developed AI technology and intellectual property, it enhances product performance and operational efficiency. Shenzhen Cogobuy's A-share listing guidance application has been accepted, which is expected to bring long-term growth to the Group - Core business: As a core supplier in the AI computing power supply chain, serving numerous AI application fields including computing centers, data centers, and AI servers[31](index=31&type=chunk)[33](index=33&type=chunk) - Distributed products: Distributes products from over **80 core chip companies**, including internationally renowned original manufacturers such as Nvidia, AMD-Xilinx, Intel, and many domestic chip original manufacturers[31](index=31&type=chunk)[33](index=33&type=chunk) - Technological advantages: Possesses multiple independent intellectual property rights, including intelligent algorithm libraries, industry-specific large models, and intelligent hardware design platforms, providing intelligent and automated comprehensive solutions[32](index=32&type=chunk)[35](index=35&type=chunk) - Shenzhen Cogobuy A-share listing: Shenzhen Cogobuy's application for A-share pre-listing guidance has been accepted by the Shenzhen Securities Regulatory Bureau of the China Securities Regulatory Commission, which is expected to bring long-term growth to the Group's business[37](index=37&type=chunk)[39](index=39&type=chunk) [IngDan Technology Business](index=11&type=section&id=IngDan%20Technology%20Business) IngDan Technology focuses on AI servers and the new energy industry, collaborating with Huawei to launch the DeepSeek all-in-one machine, meeting the domestic demand for high-performance AI computing in research institutions. Simultaneously, it actively develops the two-wheeler battery swapping and cascade utilization industry, building a full lifecycle management platform for lithium batteries. The IngDan Industry Academy has trained over 8,000 chip application engineers, contributing to industry talent development and technology promotion - AI server business: Aligns with the domestic substitution strategy, deeply collaborates with Huawei, and leverages the Ascend 910 chip to launch the DeepSeek all-in-one machine, addressing the core computing needs of research customers[38](index=38&type=chunk)[40](index=40&type=chunk) - New energy industry layout: Focuses on the two-wheeler battery swapping and cascade utilization industry, building a full lifecycle data traceability and trusted asset management platform for lithium batteries, providing customized solutions[38](index=38&type=chunk)[41](index=41&type=chunk) - IngDan Industry Academy: Introduces leading global chip application technology, provides technical services and talent training, and has cultivated over **8,000 chip application engineers**, promoting Shenzhen as a center for the chip application industry[44](index=44&type=chunk)[47](index=47&type=chunk) [Future Prospects](index=12&type=section&id=Future%20Prospects) The Group will continue to deepen its strategic goals of "solution-driven innovation and transaction-driven value," upgrading its positioning from "industry connector" to "technology enabler." In the future, it will achieve sustainable growth by optimizing standardized and customized solutions, strengthening the "infrastructure + value-added services" dual engine, leveraging data to build a long-term moat, accelerating AI industry chain expansion, enhancing IngDan Technology's revenue streams, developing an electronic manufacturing ecosystem, increasing customer loyalty, and actively seeking strategic partners and acquisition opportunities - Long-term strategic goal: Steadfastly execute "solution-driven innovation, transaction-driven value," comprehensively advancing the positioning upgrade from "industry connector" to "technology enabler"[45](index=45&type=chunk)[48](index=48&type=chunk) [I. Solution-Driven Innovation: Precisely Addressing Customer Needs](index=12&type=section&id=I.%20Solution-Driven%20Innovation%3A%20Precisely%20Addressing%20Customer%20Needs) The Group will drive business growth by continuously optimizing "standardized solutions" to quickly respond to market demands and deepening self-developed "customized solutions" to establish long-term partnerships with high-growth enterprises, balancing market breadth and customer depth - Dual-track strategy: Optimize "standardized solutions" to respond to market demand, and deepen "customized solutions" in cooperation with high-growth enterprises, balancing market breadth and customer depth[46](index=46&type=chunk)[49](index=49&type=chunk) [II. Transaction-Driven Value: Building a Foundation for Growth](index=13&type=section&id=II.%20Transaction-Driven%20Value%3A%20Building%20a%20Foundation%20for%20Growth) The Group will enhance the conversion efficiency from front-end solutions to actual transactions through a "infrastructure + value-added services" dual engine, accumulating industry and customer data, optimizing product and service design, and consolidating its position as a technology integration platform, laying the foundation for sustainable profitability and stable cash flow - Dual-engine drive: Continuously improve the conversion efficiency from front-end solutions to actual transactions, accumulate industry and customer data, and optimize product and service design[51](index=51&type=chunk)[54](index=54&type=chunk) - Strategic upgrade: Consolidate the strategic upgrade from a chip trading platform to a technology integration platform, laying the foundation for a sustainable profit model and stable cash flow[51](index=51&type=chunk)[54](index=54&type=chunk) [III. Data for Future Success: Building a Long-Term Moat](index=13&type=section&id=III.%20Data%20for%20Future%20Success%3A%20Building%20a%20Long-Term%20Moat) The Group will deepen the self-reinforcing cycle of "ecosystem-data-creation-empowerment" through continuous business expansion and data accumulation, achieving two-way data empowerment to enhance customer efficiency and innovation, and providing market feedback to upstream original manufacturers, thereby building a strong moat - Core competitiveness: No longer limited to single business gross margin, but rather the systemic advantages brought by an efficient "customer acquisition-retention-conversion" closed-loop[52](index=52&type=chunk)[55](index=55&type=chunk) - Two-way data empowerment: Downstream, it helps customers improve efficiency and innovation; upstream, it provides feedback to original manufacturers for a more accurate grasp of market trends and customer needs[52](index=52&type=chunk)[55](index=55&type=chunk) - AI industry chain expansion: Accelerate the expansion of the AI industry chain, with Cogobuy Technology enhancing chip application solution design, and IngDan Technology leveraging big data analysis to accelerate the implementation of AI product applications[53](index=53&type=chunk)[56](index=56&type=chunk) [IV. Enhancing IngDan Technology's Revenue Streams](index=14&type=section&id=IV.%20Enhancing%20IngDan%20Technology%27s%20Revenue%20Streams) IngDan Technology will seize the demand for domestic computing power in the scientific research field, deeply cultivate niche markets, provide high-performance hardware, localized solutions, and full-lifecycle technical maintenance, building an integrated "hardware + software + service" closed-loop. In the short term, it aims to seize market opportunities; in the medium term, expand into the enterprise market; and in the long term, participate in joint R&D. It will also actively develop new energy smart battery cloud business and an iPaaS technology integration platform to serve the AIoT "chip-device-cloud" industry chain - Entry into scientific research market: Seize the demand for domestic computing power in the scientific research field, provide high-performance hardware, localized solutions, and full-lifecycle technical maintenance, building an integrated "hardware + software + service" closed-loop[58](index=58&type=chunk)[60](index=60&type=chunk) - New energy smart battery cloud: Actively focus on the new energy smart battery cloud business, with a key focus on two-wheeler battery cloud services[58](index=58&type=chunk)[61](index=61&type=chunk) - iPaaS platform: Build an iPaaS technology integration platform to serve the AIoT "chip-device-cloud" industry chain, focusing on five major smart hardware fields such as smart cars and digital infrastructure[58](index=58&type=chunk)[61](index=61&type=chunk) - "Chip-device-cloud" industry closed-loop: Cogobuy Technology serves the "chip" segment, while IngDan Technology focuses on "device" and "cloud" services, utilizing big data analysis to provide customized solutions[59](index=59&type=chunk)[62](index=62&type=chunk) [V. Fostering an Ecosystem Serving the Electronics Manufacturing Value Chain](index=15&type=section&id=V.%20Fostering%20an%20Ecosystem%20Serving%20the%20Electronics%20Manufacturing%20Value%20Chain) The Group plans to develop an open, collaborative, and prosperous electronic manufacturing ecosystem by expanding value-added services such as supply chain finance, insurance, and cloud computing, and by leveraging customer and supplier data to provide data-driven services, thereby attracting and retaining customers and driving its long-term business growth - Ecosystem development: Develop an open, collaborative, and prosperous electronic manufacturing ecosystem, expanding into supply chain finance, insurance, and cloud computing services[64](index=64&type=chunk)[67](index=67&type=chunk) - Data monetization: Monetize customer and supplier data to provide marketing, sales, product customization, fulfillment management, and third-party data services[64](index=64&type=chunk)[68](index=68&type=chunk) [VI. Further Enhancing Customer Loyalty and Increasing Per-Customer Purchase Volume](index=15&type=section&id=VI.%20Further%20Enhancing%20Customer%20Loyalty%20and%20Increasing%20Per-Customer%20Purchase%20Volume) The Group will utilize advanced market analysis tools to optimize online and offline platforms, continuously collect and analyze customer data and feedback, provide customized content and product recommendations, and develop new supporting services, enhancing customer service, order fulfillment, and delivery capabilities to increase repeat purchases from new customers and gain deeper insights into customer needs - Enhance customer loyalty: Utilize advanced market analysis tools to provide more efficient and suitable online and offline platforms[65](index=65&type=chunk)[69](index=69&type=chunk) - Customized services: Continuously collect and analyze customer data and feedback, recommend suitable products, or develop customized new products[65](index=65&type=chunk)[69](index=69&type=chunk) - New supporting services: Invest resources to enhance customer service, order fulfillment, and delivery capabilities, improving service reliability and shortening customer response times[71](index=71&type=chunk)[73](index=73&type=chunk) [VII. Advancing Strategic Partnerships and Acquisition Opportunities](index=16&type=section&id=VII.%20Advancing%20Strategic%20Partnerships%20and%20Acquisition%20Opportunities) The Group plans to expand its business through strategic partnerships and acquisitions, investing in, collaborating with, or acquiring enterprises with development potential to optimize business operations, expand its user and revenue base, broaden its geographical footprint, enhance its product and service portfolio, improve technological infrastructure, and strengthen its talent pool, thereby conquering different market segments, enhancing market advantage, and seizing new growth opportunities brought by AI - External expansion: Expand business through strategic partnerships and acquisitions, identifying enterprises with development potential for investment, collaboration, or acquisition[72](index=72&type=chunk)[74](index=74&type=chunk) - Diversified business: Optimize business operations, expand user and revenue base, broaden geographical footprint, enhance product and service portfolio, and conquer different market segments[72](index=72&type=chunk)[74](index=74&type=chunk) [Financial Review](index=17&type=section&id=Financial%20Review) This section provides a detailed review of the Group's financial performance in H1 2025 compared to H1 2024, covering key financial indicators such as revenue, costs, profits, various expenses, taxes, liquidity, capital expenditure, net gearing ratio, and material investments and contingent liabilities [Comparison of H1 2025 with H1 2024](index=17&type=section&id=Comparison%20of%20H1%202025%20with%20H1%202024) The Group achieved overall growth in operating profit, profit for the period, and profit attributable to equity holders of the Company in H1 2025, reflecting business expansion and improved profitability - Operating profit: Approximately **RMB275.6 million**, an increase of approximately **RMB47.4 million** (**20.8%**) year-on-year[81](index=81&type=chunk)[85](index=85&type=chunk) - Profit for the period: Approximately **RMB190.0 million**, an increase of approximately **RMB20.9 million** (**12.4%**) year-on-year[81](index=81&type=chunk)[85](index=85&type=chunk) - Profit attributable to equity holders of the Company: Approximately **RMB132.1 million**, an increase of approximately **RMB19.4 million** (**17.2%**) year-on-year[81](index=81&type=chunk)[85](index=85&type=chunk) [Revenue](index=18&type=section&id=Revenue) The Group's revenue significantly increased during the reporting period, primarily due to increased demand for chips in AI technology-related industries and the gradual recovery of markets for storage and memory module products - Total revenue: Approximately **RMB6,676.5 million**, an increase of approximately **RMB2,355.1 million** (**54.5%**) year-on-year[82](index=82&type=chunk)[86](index=86&type=chunk) - Revenue composition: Includes sales of ICs, other electronic components, AIoT products, and self-developed and semiconductor products of approximately **RMB6,653.4 million**, and revenue from Gravity Financial Services of approximately **RMB23.1 million**[82](index=82&type=chunk)[86](index=86&type=chunk) [Cost of Sales](index=18&type=section&id=Cost%20of%20Sales) Cost of sales increased proportionally with revenue, reflecting the expansion of business volume - Total cost of sales: Approximately **RMB6,090.6 million**, a year-on-year increase of approximately **57.6%**[83](index=83&type=chunk)[87](index=87&type=chunk) [Gross Profit](index=18&type=section&id=Gross%20Profit) The Group's gross profit increased due to revenue growth, but the gross profit margin slightly decreased due to changes in customer mix (higher proportion of sales to large customers) - Total gross profit: Approximately **RMB585.9 million**, a year-on-year increase of approximately **28.0%**[84](index=84&type=chunk)[88](index=88&type=chunk) - Gross profit margin: **8.8%** in H1 2025, compared to **10.6%** in H1 2024, primarily due to changes in customer mix resulting from a higher proportion of sales to large customers[84](index=84&type=chunk)[88](index=88&type=chunk) [Other Income, Gains and Losses](index=19&type=section&id=Other%20Income%2C%20Gains%20and%20Losses) Other income significantly increased, primarily due to an increase in government grants - Total other income: Approximately **RMB14.2 million**, a year-on-year increase of approximately **RMB6.0 million** (**73.2%**)[90](index=90&type=chunk)[94](index=94&type=chunk) - Government grants: Recorded approximately **RMB4.7 million** in government grants in H1 2025, compared to approximately **RMB0.8 million** in H1 2024[90](index=90&type=chunk)[94](index=94&type=chunk) [Selling and Distribution Expenses](index=19&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses increased due to higher sales volume and new customer acquisition activities - Total selling and distribution expenses: Approximately **RMB106.8 million**, a year-on-year increase of approximately **RMB11.4 million** (**12.0%**)[91](index=91&type=chunk)[95](index=95&type=chunk) - Reasons for increase: Primarily due to increased logistics and warehousing costs, and marketing and promotional activities to acquire new customers[91](index=91&type=chunk)[95](index=95&type=chunk) [Research and Development Expenses](index=19&type=section&id=Research%20and%20Development%20Expenses) Research and development expenses continued to increase, reflecting the Group's investment in IC chip distribution, AIoT products, and customized technical solutions for self-developed products - Total R&D expenses: Approximately **RMB47.5 million**, a year-on-year increase of approximately **RMB3.9 million** (**8.9%**)[92](index=92&type=chunk)[96](index=96&type=chunk) - Areas of investment: Primarily for IC chip distribution and application design R&D, AIoT products and technology, and customized technical solutions for self-developed products[92](index=92&type=chunk)[96](index=96&type=chunk) [Administrative and Other Operating Expenses](index=19&type=section&id=Administrative%20and%20Other%20Operating%20Expenses) Administrative and other operating expenses significantly increased, primarily due to higher net exchange losses and other operating expenses resulting from business expansion - Total administrative and other operating expenses: Approximately **RMB170.2 million**, a year-on-year increase of approximately **RMB71.6 million** (**72.6%**)[93](index=93&type=chunk)[97](index=97&type=chunk) - Reasons for increase: Primarily due to increased net exchange losses and other operating expenses such as insurance, office, and travel costs due to business expansion[93](index=93&type=chunk)[97](index=97&type=chunk) [Income Tax](index=20&type=section&id=Income%20Tax) Income tax expense significantly increased, primarily due to higher profit before tax and an increased effective tax rate resulting from a higher proportion of profit contributed by Hong Kong and PRC subsidiaries - Total income tax expense: Approximately **RMB28.6 million**, a year-on-year increase of approximately **RMB19.1 million** (**201.1%**)[99](index=99&type=chunk)[102](index=102&type=chunk) - Effective tax rate: **13.1%** in H1 2025, compared to **5.3%** in H1 2024, primarily due to a higher proportion of profit contributed by Hong Kong and PRC subsidiaries relative to tax-exempt profit from PRC subsidiaries[99](index=99&type=chunk)[102](index=102&type=chunk) [Profit Attributable to Equity Holders of the Company for the Reporting Period](index=20&type=section&id=Profit%20Attributable%20to%20Equity%20Holders%20of%20the%20Company%20for%20the%20Reporting%20Period) Profit attributable to equity holders of the Company increased due to higher operating profit, partially offset by increased income tax expense - Profit attributable to equity holders of the Company: Approximately **RMB132.1 million**, a year-on-year increase of approximately **RMB19.4 million** (**17.2%**)[100](index=100&type=chunk)[103](index=103&type=chunk) [Liquidity and Capital Resources](index=20&type=section&id=Liquidity%20and%20Capital%20Resources) Both the Group's current assets and liabilities increased, with the current ratio slightly decreasing but remaining at a healthy level. Redemption of financial liabilities was exercised by some investors on December 31, 2024 - Current assets: Approximately **RMB9,260.0 million**, primarily comprising cash and bank balances, inventories, and trade and other receivables[101](index=101&type=chunk)[104](index=104&type=chunk) - Current liabilities: Approximately **RMB6,881.8 million**, primarily comprising bank borrowings and trade and other payables[101](index=101&type=chunk)[104](index=104&type=chunk) - Current ratio: **1.35** as of June 30, 2025, a **4.3% decrease** from **1.41** as of December 31, 2024[101](index=101&type=chunk)[104](index=104&type=chunk) - Redeemable financial liabilities: The redemption right was exercised by certain investors on December 31, 2024, with the present value of redeemable financial liabilities being **RMB513.2 million**[105](index=105&type=chunk)[110](index=110&type=chunk) [Capital Expenditure](index=21&type=section&id=Capital%20Expenditure) Capital expenditure significantly increased, primarily due to additions to property, plant and equipment, and intangible assets acquired for self-developed product R&D - Total capital expenditure: Approximately **RMB15.9 million**, a year-on-year increase of approximately **RMB15.3 million**[107](index=107&type=chunk)[112](index=112&type=chunk) - Reasons for increase: Primarily due to a year-on-year increase in additions to property, plant and equipment, and intangible assets acquired for self-developed product R&D[107](index=107&type=chunk)[112](index=112&type=chunk) [Net Gearing Ratio](index=21&type=section&id=Net%20Gearing%20Ratio) The Group's net gearing ratio decreased, primarily due to an increase in equity from share issuance and profit, as well as an increase in cash and cash equivalents, partially offset by an increase in bank borrowings - Net gearing ratio: Approximately **23.4%** as of June 30, 2025, a decrease from **27.8%** as of December 31, 2024[108](index=108&type=chunk)[113](index=113&type=chunk) - Reasons for decrease: Primarily due to an increase in total equity from share issuance and profit, and an increase in cash and cash equivalents[108](index=108&type=chunk)[113](index=113&type=chunk) [Material Investments](index=21&type=section&id=Material%20Investments) The Group did not make any material investments during the reporting period - No material investments: The Group did not make any material investments during the reporting period[109](index=109&type=chunk)[114](index=114&type=chunk) [Material Acquisitions and Disposals](index=22&type=section&id=Material%20Acquisitions%20and%20Disposals) Except as disclosed in this report, the Group did not undertake any material acquisitions or disposals during the reporting period - No material acquisitions or disposals: Except as disclosed in this report, the Group did not undertake any material acquisitions or disposals during the reporting period[116](index=116&type=chunk)[120](index=120&type=chunk) [Plans for Material Investments and Capital Assets in the Future](index=22&type=section&id=Plans%20for%20Material%20Investments%20and%20Capital%20Assets%20in%20the%20Future) Shenzhen Cogobuy's A-share pre-listing guidance application has been accepted, which is expected to have a long-term impact on the Group's business, though its financial data may differ from the Group's consolidated financial statements - Shenzhen Cogobuy A-share listing guidance: Shenzhen Cogobuy's application for A-share pre-listing guidance was accepted for filing on **March 26, 2025**[117](index=117&type=chunk)[121](index=121&type=chunk) - Equity and consolidation: The Group currently holds approximately **72.42%** equity in Shenzhen Cogobuy, and its results will continue to be consolidated into the Group's consolidated financial statements[117](index=117&type=chunk)[123](index=123&type=chunk) [Pledged Assets](index=22&type=section&id=Pledged%20Assets) The Group only has pledged bank deposits as collateral for credit facilities, with no other pledged assets - Pledged bank deposits: Approximately **RMB722.9 million** as of June 30, 2025 (December 31, 2024: approximately **RMB231.5 million**), pledged as collateral for credit facilities from several banks in Hong Kong and China[118](index=118&type=chunk)[124](index=124&type=chunk) [Contingent Liabilities](index=22&type=section&id=Contingent%20Liabilities) Neither the Group nor the Company had any material contingent liabilities at the end of the reporting period - No material contingent liabilities: Neither the Group nor the Company had any material contingent liabilities as of June 30, 2025[119](index=119&type=chunk)[125](index=125&type=chunk) [Exchange Rate Risk](index=23&type=section&id=Exchange%20Rate%20Risk) The Group's foreign currency transactions are translated at exchange rates on the transaction date, and monetary assets and liabilities are translated at exchange rates at the end of the reporting period, with exchange differences recognized in profit or loss or other comprehensive income. Group management closely monitors foreign exchange risk and will consider hedging when necessary - Exchange rate policy: Foreign currency transactions are translated at exchange rates on the transaction date, and monetary assets and liabilities are translated at exchange rates at the end of the reporting period, with exchange gains and losses recognized in profit or loss[126](index=126&type=chunk)[128](index=128&type=chunk)[130](index=130&type=chunk) - Risk management: The Group has not used derivative financial instruments to hedge foreign currency fluctuations; management closely monitors foreign exchange risk and considers hedging[126](index=126&type=chunk)[132](index=132&type=chunk) [Events After the Reporting Period](index=23&type=section&id=Events%20After%20the%20Reporting%20Period) As of the date of this interim report, no significant events affecting the Group have occurred since the end of the reporting period - No significant events: No significant events affecting the Group have occurred since the end of the six months ended June 30, 2025[127](index=127&type=chunk)[133](index=133&type=chunk) [Other Information](index=24&type=section&id=Other%20Information) This section provides additional disclosures regarding directors' and major shareholders' interests, employee information, share schemes, corporate governance, and other relevant matters [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company and its Associated Corporations](index=24&type=section&id=Directors%27%20and%20Chief%20Executive%27s%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20and%20its%20Associated%20Corporations) As of June 30, 2025, this chapter details the interests of the company's directors and chief executive in the company's shares, with Mr. Kang Jingwei holding a majority of shares through his controlled corporation, Envision Global Directors' Interests in Shares | Director Name | Nature of Interest | Number of Shares | Approximate Percentage of Equity | | :--- | :--- | :--- | :--- | | Mr. Kang | Interest in controlled corporation | 650,200,000 | 39.54% | | Mr. Kang | Beneficial owner | 1,800,000 | 0.11% | | Mr. Hu | Beneficial owner | 1,800,000 | 0.11% | | Ms. Guo | Beneficial owner | 600,000 | 0.04% | - Interest in associated corporation: Mr. Kang directly owns **100%** interest in Envision Global[139](index=139&type=chunk)[140](index=140&type=chunk) [Substantial Shareholders' Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company](index=26&type=section&id=Substantial%20Shareholders%27%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company) As of June 30, 2025, this chapter outlines the equity interests of the company's substantial shareholders, including Envision Global, Mr. Kang, Optimum Profuse Technology (HK) Limited, SHEN Bing, Total Dynamic, and Ms. Yao Substantial Shareholders' Interests in Shares | Name/Entity | Nature of Interest | Number of Shares | Approximate Percentage of Equity | | :--- | :--- | :--- | :--- | | Envision Global | Beneficial owner | 650,200,000 | 39.54% | | Mr. Kang | Interest in controlled corporation | 650,200,000 | 39.54% | | Mr. Kang | Beneficial owner | 1,800,000 | 0.11% | | Optimum Profuse Technology (HK) Limited | Beneficial owner | 250,000,000 | 15.20% | | SHEN Bing | Interest in controlled corporation | 250,000,000 | 15.20% | | Total Dynamic | Beneficial owner | 182,888,000 | 11.12% | | Ms. Yao | Interest in controlled corporation | 182,888,000 | 11.12% | [Employees and Remuneration Policy](index=27&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 565 employees, with remuneration policies based on industry practice, education, experience, and performance, offering benefits such as pensions, training, discretionary bonuses, medical insurance, and share awards - Number of employees: As of June 30, 2025, the Group had **565 employees** (June 30, 2024: 588 employees)[152](index=152&type=chunk)[153](index=153&type=chunk) - Staff costs: Total staff costs for the six months ended June 30, 2025, were approximately **RMB88.8 million** (H1 2024: RMB74.9 million)[152](index=152&type=chunk)[155](index=155&type=chunk) - Remuneration policy: Based on industry practice, educational background, experience, and performance, offering pensions, training, discretionary bonuses, medical insurance, and share awards[152](index=152&type=chunk)[153](index=153&type=chunk) [Share Schemes](index=28&type=section&id=Share%20Schemes) The company has two Restricted Share Unit Schemes, 2014 and 2023, designed to incentivize employees. The 2014 scheme terminated in 2023 with no outstanding awards. The 2023 scheme sets a maximum number of shares that can be granted, with no new share-related restricted share units granted during the reporting period [2014 Restricted Share Unit Scheme](index=28&type=section&id=2014%20Restricted%20Share%20Unit%20Scheme) The 2014 Restricted Share Unit Scheme terminated on June 9, 2023, and as of June 30, 2025, and the date of this report, there are no outstanding share awards - Scheme termination: The 2014 Restricted Share Unit Scheme terminated on **June 9, 2023**[160](index=160&type=chunk)[161](index=161&type=chunk) - No outstanding awards: As of June 30, 2025, and the date of this report, there are no outstanding share awards[160](index=160&type=chunk)[161](index=161&type=chunk) [2023 Restricted Share Unit Scheme](index=30&type=section&id=2023%20Restricted%20Share%20Unit%20Scheme) The 2023 Restricted Share Unit Scheme was adopted on June 9, 2023, aiming to align the interests of eligible participants with those of the company and its shareholders through equity incentives. The scheme sets a maximum number of shares that can be granted, with no new share-related restricted share units granted during the reporting period, but a significant number of shares remain available for future grants - Scheme purpose: To reward, incentivize, and retain eligible participants, aligning their interests with those of the company and shareholders, contributing to the company's long-term growth[168](index=168&type=chunk)[170](index=170&type=chunk) - 2023 Restricted Share Unit Scheme limit: Not exceeding **139,426,273 shares** (representing **10%** of the total issued share capital on the adoption date)[169](index=169&type=chunk)[171](index=171&type=chunk) - Service provider sub-limit: **4,182,788 shares** (representing **3%** of the total issued share capital on the adoption date)[169](index=169&type=chunk)[172](index=172&type=chunk) - Grants during reporting period: No restricted share units involving new shares were granted during the reporting period[169](index=169&type=chunk)[173](index=173&type=chunk) - Maximum number of new shares available for issue: **139,426,273 shares** (representing **10%** of the total issued shares as of June 9, 2023)[176](index=176&type=chunk)[179](index=179&type=chunk) [Corporate Governance](index=32&type=section&id=Corporate%20Governance) The company is committed to maintaining strict corporate governance, generally complying with the Corporate Governance Code during the reporting period, except for the non-segregation of Chairman and CEO roles and the management not providing monthly updates to the Board, which the Board will continuously review and adjust as appropriate - Compliance with Corporate Governance Code: All applicable code provisions were complied with during the reporting period, except for C.2.1 (segregation of Chairman and CEO roles) and D.1.2 (management providing monthly updates)[184](index=184&type=chunk)[185](index=185&type=chunk)[186](index=186&type=chunk) - Chairman and CEO roles: Mr. Kang serves as both Chairman and CEO; the Board believes this arrangement ensures leadership consistency and efficiency and will continue to review it[185](index=185&type=chunk) - Board updates: Management provides business information to the Board quarterly and as needed, rather than monthly[186](index=186&type=chunk) [Directors' Interests in Competing Businesses](index=33&type=section&id=Directors%27%20Interests%20in%20Competing%20Businesses) During the reporting period, the Directors were not aware of any business or interest of any Director or substantial shareholder and their respective associates that competes or may compete with the Group's business or creates a conflict of interest - No competing business or conflict of interest: During the reporting period, the Directors were not aware of any business or interest of any Director or substantial shareholder and their respective associates that competes or may compete with the Group's business or creates a conflict of interest[189](index=189&type=chunk)[191](index=191&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors](index=33&type=section&id=Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The company has adopted a Model Code to regulate securities transactions by directors and relevant employees, and all directors confirmed compliance with the code during the reporting period, with no non-compliance found among relevant employees - Compliance with Model Code: The company has adopted the Model Code, and all Directors confirmed compliance during the reporting period[190](index=190&type=chunk)[192](index=192&type=chunk) - Compliance by relevant employees: No non-compliance with the Model Code was found among relevant employees[190](index=190&type=chunk)[193](index=193&type=chunk) [Review by Audit Committee](index=33&type=section&id=Review%20by%20Audit%20Committee) The Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025, and this report, and discussed accounting policies, internal controls, and risk management with senior management and external auditors - Review scope: Reviewed the Group's unaudited interim results for the six months ended June 30, 2025, and this report[197](index=197&type=chunk)[198](index=198&type=chunk) - Discussion content: Discussed accounting policies, internal controls, and risk management with senior management and external auditors[197](index=197&type=chunk)[198](index=198&type=chunk) [Other Board Committees](index=34&type=section&id=Other%20Board%20Committees) In addition to the Audit Committee, the company has also established a Nomination Committee and a Remuneration Committee - Other committees: The company has established a Nomination Committee and a Remuneration Committee[199](index=199&type=chunk)[201](index=201&type=chunk) [Changes in Directors' Information](index=34&type=section&id=Changes%20in%20Directors%27%20Information) Ms. Guo Lihua was appointed as a member of the company's Nomination Committee on June 30, 2025 - Ms. Guo's appointment: Ms. Guo Lihua was appointed as a member of the company's Nomination Committee, effective from **June 30, 2025**[200](index=200&type=chunk)[202](index=202&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=35&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) On February 7, 2025, the company entered into a subscription agreement with Optimum Profuse Technology (HK) Limited to place 250 million new shares at HKD1.30 per share, with proceeds used for acquiring Shenzhen Cogobuy shares, redemption payments, and general working capital, which have now been fully utilized. The company and its subsidiaries did not purchase, sell, or redeem other listed securities during the reporting period - 2025 Subscription: On **February 7, 2025**, the company entered into an agreement with a subscriber to place **250,000,000 new shares** at **HKD1.30 per share**, totaling **HKD325,000,000**[203](index=203&type=chunk)[206](index=206&type=chunk) - Use of proceeds: Used for acquiring Shenzhen Cogobuy shares, redemption payments, and general working capital, and has been fully utilized[203](index=203&type=chunk)[206](index=206&type=chunk) - No other listed securities transactions: Except as disclosed above, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities on the Hong Kong Stock Exchange[204](index=204&type=chunk)[208](index=208&type=chunk) [Interim Dividend](index=35&type=section&id=Interim%20Dividend) The Board does not recommend the payment of an interim dividend for the reporting period - No interim dividend: The Board does not recommend the payment of an interim dividend for the reporting period (H1 2024: nil)[205](index=205&type=chunk)[209](index=209&type=chunk) [Material Litigation](index=36&type=section&id=Material%20Litigation) As of June 30, 2025, the company was not involved in any material litigation or arbitration, and the Directors were not aware of any outstanding or threatened material litigation or claims - No material litigation: As of June 30, 2025, the company was not involved in any material litigation or arbitration[211](index=211&type=chunk)[212](index=212&type=chunk) [Update on Non-Compliance Matters](index=36&type=section&id=Update%20on%20Non-Compliance%20Matters) As of June 30, 2025, the company had 15 lease agreements with PRC landlords that were not registered with government authorities, potentially incurring fines of up to RMB150,000. However, the Directors believe this non-compliance does not have a material impact on operations or financial position and are committed to timely rectification - Unregistered lease agreements: As of June 30, 2025, **15 lease agreements** with PRC landlords were not registered with relevant government authorities[213](index=213&type=chunk)[215](index=215&type=chunk) - Potential fines: May face fines of up to **RMB150,000**, but the Directors believe it does not constitute a material impact[213](index=213&type=chunk)[215](index=215&type=chunk)[216](index=216&type=chunk) - Commitment to rectify: The company is committed to timely rectifying all non-compliance matters and will provide updates in subsequent reports[214](index=214&type=chunk)[216](index=216&type=chunk) [Review Report on Condensed Consolidated Interim Financial Information](index=37&type=section&id=Review%20Report%20on%20Condensed%20Consolidated%20Interim%20Financial%20Information) This section presents the independent auditor's review report on the Group's condensed consolidated interim financial information [Introduction](index=37&type=section&id=Introduction) The auditor has reviewed the condensed consolidated financial statements of IngDan Innovation and its subsidiaries for the six months ended June 30, 2025, prepared in accordance with Hong Kong Accounting Standard 34 issued by the HKICPA, with the Board responsible for their preparation and presentation - Reviewed subject: Condensed consolidated financial statements of IngDan Innovation and its subsidiaries for the six months ended June 30, 2025[218](index=218&type=chunk)[219](index=219&type=chunk) - Basis of preparation: Prepared in accordance with Appendix D2 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the HKICPA[218](index=218&type=chunk)[219](index=219&type:chunk) [Scope of Review](index=38&type=section&id=Scope%20of%20Review) The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410, primarily involving inquiries and analytical procedures, with a scope narrower than an audit, thus not providing audit assurance or expressing an audit opinion - Review standard: Conducted in accordance with Hong Kong Standard on Review Engagements 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the HKICPA[222](index=222&type=chunk)[223](index=223&type=chunk) - Scope limitation: The scope of a review is substantially less than an audit, and no audit opinion is expressed[222](index=222&type=chunk)[223](index=223&type=chunk) [Conclusion](index=38&type=section&id=Conclusion) Based on the review, the auditor found no material non-compliance with Hong Kong Accounting Standard 34 in the condensed consolidated financial statements - Review conclusion: Nothing has come to the auditor's attention that causes them to believe the condensed consolidated financial statements are not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34[224](index=224&type=chunk)[225](index=225&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=39&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement presents the Group's unaudited consolidated profit or loss and other comprehensive income for the six months ended June 30, 2025, including revenue, cost of sales, gross profit, various expenses, finance costs, share of results of associates, income tax expense, profit for the period, and total other comprehensive income (expense), attributed to owners of the company and non-controlling interests Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (RMB thousand) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue | 6,676,479 | 4,321,417 | | Cost of Sales | (6,090,611) | (3,863,822) | | Gross Profit | 585,868 | 457,595 | | Operating Profit | 275,600 | 228,200 | | Profit for the Period | 190,046 | 169,057 | | Profit Attributable to Owners of the Company | 132,075 | 112,688 | | Profit Attributable to Non-controlling Interests | 57,971 | 56,369 | | Other Comprehensive Income (Expense) for the Period | 4,698 | (373,991) | | Total Comprehensive Income (Expense) for the Period | 194,744 | (204,934) | | Earnings Per Share (Basic) | 0.086 | 0.082 | | Earnings Per Share (Diluted) | 0.086 | 0.082 | [Condensed Consolidated Statement of Financial Position](index=41&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement presents the Group's condensed consolidated financial position as of June 30, 2025, and December 31, 2024, including non-current assets, current assets, current liabilities, non-current liabilities, net assets, capital and reserves, and total equity Condensed Consolidated Statement of Financial Position (RMB thousand) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 23,729 | 15,600 | | Right-of-Use Assets | 105,214 | 104,904 | | Investment Properties | 192,765 | 207,347 | | Intangible Assets | 242,913 | 298,037 | | Goodwill | 607,007 | 607,007 | | Financial Assets at Fair Value Through Other Comprehensive Income | 1,205,186 | 796,786 | | Loans Receivable | 556,350 | 803,622 | | Interests in Associates | 35,780 | 33,239 | | **Current Assets** | | | | Inventories | 4,877,289 | 3,510,501 | | Trade and Other Receivables | 2,528,221 | 2,380,719 | | Pledged Bank Deposits | 722,863 | 231,458 | | Cash and Cash Equivalents | 903,915 | 608,229 | | **Current Liabilities** | | | | Trade and Other Payables | 4,155,145 | 2,475,227 | | Bank Borrowings | 2,561,178 | 1,885,882 | | **Non-current Liabilities** | | | | Other Financial Liabilities | 513,180 | 384,555 | | **Total Equity** | 4,804,429 | 4,408,884 | [Condensed Consolidated Statement of Changes in Equity](index=43&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This statement presents the Group's condensed consolidated changes in equity for the six months ended June 30, 2025, including the opening balance, profit for the period, other comprehensive income, share issuance, changes in ownership interests in subsidiaries, and share-based payment expenses, and their impact on share capital, share premium, various reserves, and non-controlling interests Condensed Consolidated Statement of Changes in Equity (RMB thousand) | Indicator | January 1, 2025 | June 30, 2025 | | :--- | :--- | :--- | | Share Capital | 1 | 1 | | Share Premium | 2,023,351 | 2,322,250 | | Capital Reserve | 18,923 | 18,923 | | Share-based Compensation Reserve | 28,567 | 28,477 | | Other Reserves | (124,607) | (154,483) | | Treasury Shares | (37,210) | (36,882) | | Exchange Fluctuation Reserve | 50,458 | 11,811 | | Statutory Reserve | 13,891 | 13,891 | | Fair Value Reserve | (1,026,512) | (975,805) | | Retained Profits | 2,899,193 | 3,031,268 | | **Total Attributable to Owners of the Company** | **3,846,055** | **4,259,451** | | Non-controlling Interests | 562,829 | 544,978 | | **Total Equity** | **4,408,884** | **4,804,429** | - Key changes during the period: Profit for the period: **RMB132,075 thousand**; Other comprehensive income for the period: **RMB12,060 thousand**; Share issuance: **RMB298,899 thousand**; Changes in ownership interests in subsidiaries: **RMB(98,336) thousand** [Condensed Consolidated Statement of Cash Flows](index=45&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This statement presents the Group's condensed consolidated cash flows for the six months ended June 30, 2025, including net cash from operating, investing, and financing activities, and the cash and cash equivalents balance at the end of the period Condensed Consolidated Statement of Cash Flows (RMB thousand) | Activity Type | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Cash From Operating Activities | 82,738 | 34,168 | | Net Cash Used in Investing Activities | (479,827) | (23,587) | | Net Cash From Financing Activities | 708,213 | 50,084 | | Net Increase in Cash and Cash Equivalents | 311,124 | 60,665 | | Cash and Cash Equivalents at End of Period | 903,915 | 503,430 | [Notes to the Condensed Consolidated Interim Financial Information](index=47&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Information) This section provides detailed notes and explanations supporting the condensed consolidated interim financial information [General Information](index=47&type=section&id=General%20Information) IngDan Innovation was incorporated in the Cayman Islands on February 1, 2012, and listed on the Hong Kong Stock Exchange on July 18, 2014. The Group primarily engages in the sale of ICs, other electronic components, AIoT products, and self-developed and semiconductor products, as well as providing financial services - Company incorporation and listing: Incorporated in the Cayman Islands on **February 1, 2012**, and listed on the Main Board of the Hong Kong Stock Exchange on **July 18, 2014**[242](index=242&type=chunk)[244](index=244&type=chunk) - Principal business: Sale of ICs, other electronic components, AIoT products, and self-developed and semiconductor products, and provision of Gravity Financial Services[243](index=243&type=chunk)[247](index=247&type=chunk) - Holding company: The immediate and ultimate holding company is Envision Global Investments Limited[242](index=242&type=chunk)[246](index=246&type=chunk) [Basis of Preparation](index=48&type=section&id=Basis%20of%20Preparation) The Group's condensed consolidated interim financial information for the six months ended June 30, 2025, has been prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the HKICPA and the disclosure requirements of Appendix D2 of the Listing Rules of the Stock Exchange - Basis of preparation: Prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and the applicable disclosure requirements of Appendix D2 of the Listing Rules of the Stock Exchange[249](index=249&type=chunk)[252](index=252&type=chunk) [Accounting Policies](index=48&type=section&id=Accounting%20Policies) The condensed consolidated interim financial information is primarily prepared under the historical cost convention, except for certain financial assets measured at fair value. Revisions to Hong Kong Financial Reporting Standards accounting standards were first applied in this period but did not have a material impact on financial performance and position - Basis of preparation: Primarily prepared under the historical cost convention, with certain financial assets measured at fair value[250](index=250&type=chunk)[253](index=253&type=chunk) - Impact of standard revisions: Revisions to Hong Kong Financial Reporting Standards accounting standards (e.g., amendments to HKAS 21) were applied in this period but did not have a material impact on financial performance and position[251](index=251&type=chunk)[254](index=254&type=chunk) [Revenue](index=49&type=section&id=Revenue) The Group's revenue primarily derives from the sale of ICs, other electronic components, AIoT products, and self-developed and semiconductor products, as well as interest income from Gravity Financial Services. All revenue from customer contracts is recognized at a point in time and primarily originates from the China (including Hong Kong) market Revenue by Source (RMB thousand) | Revenue Source | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Sales of ICs, other electronic components, AIoT products and self-developed and semiconductor products | 6,653,438 | 4,300,831 | | Interest income from Gravity Financial Services | 23,041 | 20,586 | | **Total Revenue** | **6,676,479** | **4,321,417** | - Revenue recognition timing: All revenue from customer contracts is recognized at a point in time[259](index=259&type=chunk)[260](index=260&type=chunk)[262](index=262&type=chunk) - Geographical market: Primarily from China (including Hong Kong)[259](index=259&type=chunk)[260](index=260&type=chunk)[262](index=262&type=chunk) [Segment Information](index=52&type=section&id=Segment%20Information) The Group identifies two reportable segments: Cogobuy Technology and IngDan Technology, which manage the sales of ICs, electronic components, and AIoT products, and self-developed and semiconductor products, financial services, software licensing, and incubator businesses, respectively. Both segments showed revenue and profit growth, but unallocated corporate expenses and finance costs impacted overall profit - Segment breakdown: The Group identifies two reportable segments: Cogobuy Technology and IngDan Technology[263](index=263&type=chunk)[265](index=265&type=chunk)[266](index=266&type=chunk) - Cogobuy Technology business: Sales of ICs, other electronic components, and AIoT products[266](index=266&type=chunk) - IngDan Technology business: Sales of self-developed and semiconductor products, Gravity Financial Services, software licensing operations, and incubator businesses[266](index=266&type=chunk) [Segment Revenue and Results](index=53&type=section&id=Segment%20Revenue%20and%20Results) This chapter details the revenue and profit performance of the Cogobuy Technology and IngDan Technology segments in H1 2025, showing that both segments contributed to the Group's overall performance growth Segment Revenue and Profit (RMB thousand) | Segment | Revenue | Profit | | :--- | :--- | :--- | | Cogobuy Technology | 6,345,756 | 243,798 | | IngDan Technology | 330,723 | 102,305 | | **Total** | **6,676,479** | **346,103** | [Segment Assets and Liabilities](index=55&type=section&id=Segment%20Assets%20and%20Liabilities) This chapter analyzes the assets and liabilities of the Cogobuy Technology and IngDan Technology segments as of June 30, 2025, showing that Cogobuy Technology has significantly larger asset and liability scales than IngDan Technology Segment Assets and Liabilities (RMB thousand) | Segment | Assets | Liabilities | | :--- | :--- | :--- | | Cogobuy Technology | 7,003,828 | 4,087,051 | | IngDan Technology | 3,376,909 | 132,210 | | **Total** | **10,380,737** | **4,219,261** | [Other Income, Gains and Losses](index=57&type=section&id=Other%20Income%2C%20Gains%20and%20Losses) The Group's other income, gains, and losses significantly increased in H1 2025, primarily due to a rise in government grants Other Income, Gains and Losses (RMB thousand) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Bank interest income | 6,723 | 7,266 | | Government grants | 4,740 | 839 | | Other | 2,955 | 59 | | Loss on disposal of investment properties | (225) | — | | **Total** | **14,193** | **8,164** | [Finance Costs](index=57&type=section&id=Finance%20Costs) The Group's finance costs slightly increased in H1 2025, primarily comprising interest on bank borrowings and other financial liabilities Finance Costs (RMB thousand) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Interest on other financial liabilities | 16,331 | 19,676 | | Interest on bank borrowings | 41,040 | 37,221 | | Interest on lease liabilities | 606 | 713 | | Factoring costs | 1,492 | 279 | | **Total** | **59,469** | **57,889** | [Income Tax Expense](index=58&type=section&id=Income%20Tax%20Expense) The Group's income tax expense significantly increased in H1 2025, primarily due to higher profit before tax and an increased effective tax rate Income Tax Expense (RMB thousand) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Current tax | 32,245 | 13,298 | | Deferred tax | (3,662) | (3,770) | | **Total** | **28,583** | **9,528** | - Effective tax rate: **13.1%** in H1 2025, compared to **5.3%** in H1 2024, primarily due to a higher proportion of profit contributed by Hong Kong and PRC subsidiaries relative to tax-exempt profit from PRC subsidiaries[99](index=99&type=chunk)[102](index=102&type=chunk) [Profit for the Period](index=59&type=section&id=Profit%20for%20the%20Period) The Group's profit for the period was achieved after deducting various expenses, with amortization of intangible assets, depreciation, inventory provisions, and trade receivables loss provisions being key influencing factors Profit for the Period (RMB thousand) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Amortization of intangible assets | 60,204 | 86,773 | | Depreciation of property, plant and equipment | 224 | 383 | | Depreciation of right-of-use assets | 11,068 | 12,298 | | Depreciation of investment properties | 3,575 | 1,765 | | Net provision for inventories | 1,670 | 32,399 | | Loss provision for trade receivables | 10,895 | 7,513 | | Research and development expenses | 47,454 | 43,597 | | Amount of inventories recognized as expense | 6,030,407 | 3,795,710 | [Dividends](index=60&type=section&id=Dividends) For the six months ended June 30, 2025, the company did not pay, declare, or propose any dividends - No dividend payment: No dividends were paid, declared, or proposed for the six months ended June 30, 2025[301](index=301&type=chunk)[302](index=302&type=chunk) [Earnings Per Share](index=60&type=section&id=Earnings%20Per%20Share) The Group's basic and diluted earnings per share for the six months ended June 30, 2025, both increased, reflecting an improvement in the company's profitability Earnings Per Share (RMB thousand, except per share amount) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit attributable to owners of the Company for the period | 132,075 | 112,688 | |

Core Insights - The company, HardEgg Innovation, reported a 54.5% year-on-year revenue growth to 6.677 billion yuan for the first half of 2025, with a net profit of 190 million yuan, driven by the booming demand for AI computing power [2] - The significant performance boost is attributed to its subsidiary, Shenzhen Keton Technology Co., Ltd., which serves as a core supplier in the AI computing supply chain, benefiting from partnerships with over 80 leading chip manufacturers including Nvidia, Xilinx, Intel, and AMD [2] - HardEgg Technology (Shenzhen) Co., Ltd., another key segment of the company, is leveraging a "dual-engine" strategy to capitalize on domestic AI computing opportunities and strengthen its position in the new energy sector [3] Business Strategy - The company is transitioning from a chip trading platform to a technology integration platform, which has shown significant results in its core business growth [2] - The dual-engine strategy involves collaboration with domestic leaders like Huawei to provide computing solutions and a focus on battery swapping and recycling in the new energy sector [3] - The CEO, Kang Jingwei, emphasized the goal of transforming data resources into strategic assets and building a solid competitive moat to create long-term sustainable value for shareholders [3]

Core Insights - Hard Egg Innovation (00400.HK) reported a strong revenue growth of 54.5% year-on-year, reaching RMB 6.677 billion for the first half of 2025, with a net profit of RMB 190 million [1] - The company's strategic transformation from a chip trading platform to a technology integration platform has yielded significant results, driven by the explosive demand for AI computing power globally [1] Business Performance - The core driver of the revenue growth is attributed to the outstanding performance of its subsidiary, Keton Technology, which serves as a key supplier in the AI computing supply chain [1] - Keton Technology has established close partnerships with over 80 leading chip manufacturers, including Nvidia, Xilinx, Intel, and AMD, enabling it to efficiently respond to the high demand for high-performance AI chips [1] - Keton Technology not only provides hardware but also offers integrated software and hardware solutions in the "AI infrastructure + AI intelligent terminal" sector, supporting thousands of innovative clients with deep technical assistance [1] Diversification and Future Strategy - The other significant segment, Hard Egg Technology, demonstrates diversified growth potential through a "dual-engine" strategy, focusing on domestic AI computing opportunities and strengthening partnerships with leading companies like Huawei [2] - The company is also committed to the renewable energy sector, particularly in battery swapping for two-wheeled vehicles and battery recycling [2] - Hard Egg Innovation's CEO emphasized the successful completion of the strategic upgrade and the establishment of an efficient business loop, serving tens of thousands of innovative enterprises [2] - The company aims to continue leveraging "infrastructure + value-added services" as dual engines to transform data resources into strategic assets, building a solid competitive moat for sustainable long-term value creation for shareholders [2]

FF301 呈交日期: 2025年9月1日 I. 法定/註冊股本變動 | 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) | 00400 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 500,000,000,000 | USD | | 0.0000001 USD | | | 50,000 | | 增加 / 減少 (-) | | | 0 | | | USD | | | | | 本月底結存 | | | 500,000,000,000 | USD | | 0.0000001 USD | | | 50,000 | 本月底法定/註冊股本總額： USD 50,000 第 1 頁 共 10 頁 v 1.1.1 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: 2 ...