Group 1 - The core viewpoint of the article is that 泛亚环保 (Pan-Asia Environmental) reported a decline in revenue and profit for the six months ending June 30, 2025, indicating challenges in its business operations [1] - The company's total revenue for the first half of 2025 was 113 million RMB, representing a year-on-year decrease of 2% [1] - The profit attributable to the company's owners was 4.718 million RMB, which is a 26% decline compared to the previous year [1] - Basic earnings per share were reported at 0.48 cents [1] Group 2 - The decline in revenue was primarily attributed to a slight decrease in sales of environmental products [1]

Core Viewpoint - Pan-Asia Environmental (00556) reported a revenue of 113 million RMB for the six months ending June 30, 2025, reflecting a year-on-year decline of 2% [1] - The profit attributable to the company's owners was 4.718 million RMB, down 26% year-on-year, with basic earnings per share at 0.48 cents [1] Financial Performance - Total revenue for the group decreased year-on-year, primarily due to a slight decline in sales of environmental products [1]

Group 1 - The company reported a revenue of RMB 113 million for the six months ending June 30, 2025, representing a year-on-year decrease of 2% [1] - The gross profit was RMB 15.316 million, which is a year-on-year decrease of 14% [1] - The profit attributable to the company's owners was RMB 4.718 million, reflecting a year-on-year decrease of 26% [1] - The basic earnings per share were RMB 0.48 [1]

[Financial Summary](index=1&type=section&id=Financial%20Summary) Pan-Asia Environmental Group reported a decline in revenue, gross profit, and profit attributable to owners for the six months ended June 30, 2025 Financial Summary for the Six Months Ended June 30 | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 113,340 | 115,410 | -2% | | Gross Profit | 15,316 | 17,855 | -14% | | Profit for the Period Attributable to Owners of the Company | 4,718 | 6,389 | -26% | | Earnings Per Share (RMB cents) | 0.48 | 0.66 | -27% | [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the Group's condensed consolidated financial statements, showing declines in income and profit, with a slight increase in total equity [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group's revenue and gross profit declined, with profit for the period decreasing by 33.1% due to the absence of certain gains and losses from the prior year Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 113,340 | 115,410 | -2% | | Cost of Sales | (98,024) | (97,555) | 0.5% | | Gross Profit | 15,316 | 17,855 | -14.2% | | Net Other Income | 1,264 | 3,040 | -58.4% | | Net Other Gains | 2,193 | 889 | 146.7% | | Impairment Loss on Cryptocurrencies | – | (6,988) | N/A | | Fair Value Gain on Financial Liabilities at Fair Value Through Profit or Loss | – | 7,609 | N/A | | Finance Costs | (160) | (845) | -81.1% | | Profit Before Tax | 8,931 | 11,954 | -25.3% | | Income Tax Expense | (4,213) | (4,896) | -14.0% | | Profit for the Period | 4,718 | 7,058 | -33.1% | | Profit for the Period Attributable to Owners of the Company | 4,718 | 6,389 | -26.2% | | Basic and Diluted Earnings Per Share (RMB cents) | 0.48 | 0.66 | -27.3% | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group saw decreases in non-current assets and current liabilities, a slight increase in net current assets, and stable cash balances Key Data from Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current Assets | 2,409 | 6,129 | -60.6% | | Current Assets | 1,301,651 | 1,309,769 | -0.6% | | Current Liabilities | 132,617 | 149,999 | -11.6% | | Net Current Assets | 1,169,034 | 1,159,770 | 0.8% | | Total Assets Less Current Liabilities | 1,171,443 | 1,165,899 | 0.5% | | Non-current Liabilities | 332 | 1,017 | -67.3% | | Net Assets | 1,171,111 | 1,164,882 | 0.5% | | Total Equity | 1,171,111 | 1,164,882 | 0.5% | | Cash and Bank Balances | 1,264,950 | 1,256,898 | 0.6% | [Notes to the Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section details the basis of preparation, significant accounting judgments, revenue, segment reporting, and other key financial statement items for the Group's operations [1. General Information](index=6&type=section&id=1.%20General%20Information) Pan-Asia Environmental Group Limited, incorporated in the Cayman Islands and listed on the Stock Exchange, focuses on environmental products, engineering, and investment holding - The company is incorporated in the Cayman Islands, with shares listed on the Stock Exchange[7](index=7&type=chunk) - The Group primarily engages in the sale of environmental protection products and equipment, environmental construction engineering services in China, and investment holding[8](index=8&type=chunk) [2. Basis of Preparation](index=6&type=section&id=2.%20Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in RMB under HKAS 34 and Listing Rules, with consistent accounting policies and no significant impact from new standards [2(a) Statement of Compliance](index=6&type=section&id=2(a)%20Statement%20of%20Compliance) The condensed consolidated financial statements are prepared in RMB, adhering to HKAS 34 and the Stock Exchange Listing Rules' disclosure requirements - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and the Listing Rules of the Stock Exchange[9](index=9&type=chunk) - The Group's functional currency is HKD, but the condensed consolidated financial statements are presented in RMB, as most transactions are denominated in RMB[9](index=9&type=chunk) [2(b) Significant Accounting Policies Information](index=6&type=section&id=2(b)%20Significant%20Accounting%20Policies%20Information) Accounting policies are consistent with 2024, and newly adopted or issued standards are not expected to significantly impact the Group's financial position or performance - Accounting policies are consistent with the 2024 annual consolidated financial statements, and revised standards effective January 1, 2025, have been adopted with no significant impact expected[10](index=10&type=chunk)[11](index=11&type=chunk) - New and revised standards issued but not yet effective (e.g., HKFRS 9, 18, 19) are not expected to have a significant impact on the Group's financial position and performance[12](index=12&type=chunk)[13](index=13&type=chunk) [3. Significant Accounting Judgments and Key Sources of Estimation Uncertainty](index=7&type=section&id=3.%20Significant%20Accounting%20Judgments%20and%20Key%20Sources%20of%20Estimation%20Uncertainty) This section outlines significant accounting judgments and estimation uncertainties, including impairment, warranty, income tax, and withholding tax, based on historical data and economic forecasts [3(a) Key Sources of Estimation Uncertainty](index=7&type=section&id=3(a)%20Key%20Sources%20of%20Estimation%20Uncertainty) Impairment estimates for trade receivables and contract assets involve judgment based on credit loss experience and economic forecasts, with no warranty provisions due to supplier coverage - Impairment estimates for trade receivables and contract assets are based on expected credit losses, requiring estimation and judgment, considering past experience and economic conditions[14](index=14&type=chunk)[15](index=15&type=chunk) - The Group has not made provisions for product warranties on environmental protection products and equipment due to supplier warranties and insignificant recent claims experience[16](index=16&type=chunk) [3(b) Significant Accounting Judgments Made in Applying the Group's Accounting Policies](index=8&type=section&id=3(b)%20Significant%20Accounting%20Judgments%20Made%20in%20Applying%20the%20Group's%20Accounting%20Policies) Significant accounting judgments include income tax provisions, assessing final tax determinations, and withholding tax on Chinese subsidiaries' distributable profits, where dividend distribution is deemed unlikely - Income tax provisions involve significant judgment regarding final tax determinations due to transaction and calculation complexities, leading to uncertainty[18](index=18&type=chunk) - The Group judges that the likelihood of its Chinese subsidiaries distributing dividends in the foreseeable future is extremely low, thus no provision for withholding tax on dividend distribution has been made[19](index=19&type=chunk) [4. Revenue and Segment Reporting](index=9&type=section&id=4.%20Revenue%20and%20Segment%20Reporting) This section details revenue sources and segment reporting, with revenue primarily from environmental products and equipment sales, and all segments located in China [4(a) Revenue](index=9&type=section&id=4(a)%20Revenue) Group revenue, excluding sales taxes, is entirely from goods sales, specifically water treatment and flue gas treatment products, with no environmental engineering service revenue Revenue Disaggregation from Contracts with Customers | Type of Goods or Services | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Water Treatment Products and Equipment | 84,270 | 84,920 | | Flue Gas Treatment Products and Equipment | 29,070 | 30,490 | | **Total** | **113,340** | **115,410** | | Timing of Revenue Recognition (at a point in time) | 113,340 | 115,410 | [4(b) Segment Reporting](index=9&type=section&id=4(b)%20Segment%20Reporting) The Group manages two China-based segments, environmental products and engineering, assessing performance via Adjusted EBITDA, with only the product segment generating revenue - The Group's operating and reportable segments are classified as (i) environmental protection products and equipment and (ii) environmental construction engineering services, all located in China[23](index=23&type=chunk) - Segment profit is assessed using the **Adjusted EBITDA** method, representing earnings before interest, tax, depreciation, and amortization, adjusted for items not allocated to individual segments[25](index=25&type=chunk) Reportable Segment Revenue and Profit (Adjusted EBITDA) | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Environmental Protection Products and Equipment Segment Revenue | 113,340 | 115,410 | | Environmental Construction Engineering Services Segment Revenue | – | – | | **Total Reportable Segment Revenue** | **113,340** | **115,410** | | Environmental Protection Products and Equipment Segment Profit (Adjusted EBITDA) | 18,627 | 17,941 | | Environmental Construction Engineering Services Segment Profit (Adjusted EBITDA) | – | – | - Revenue from external customers is entirely derived from China[29](index=29&type=chunk)[30](index=30&type=chunk) [5. Net Other Income](index=12&type=section&id=5.%20Net%20Other%20Income) Net other income significantly decreased by 58.4% to RMB 1,264 thousand, mainly due to the absence of agency fees and distributed storage solution income Details of Net Other Income | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Bank Interest Income | 1,264 | 1,257 | 0.6% | | Agency Fee Income | – | 1,708 | -100% | | Net Income from Providing Distributed Disaster Recovery Storage Solutions | – | 75 | -100% | | **Total** | **1,264** | **3,040** | -58.4% | [6. Profit Before Tax](index=12&type=section&id=6.%20Profit%20Before%20Tax) Profit before tax decreased by 25.3% to RMB 8,931 thousand, influenced by significantly lower finance costs and the absence of prior-year cryptocurrency and financial liability fair value items Major Items Affecting Profit Before Tax | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Finance Costs | 160 | 845 | -81.1% | | Cost of Inventories | 98,024 | 97,555 | 0.5% | | Depreciation | 1,734 | 369 | 370% | | Net Impairment Loss on Trade Receivables | (1,662) | (976) | 70.3% | | Net Impairment Loss on Contract Assets | (955) | 85 | N/A | | Impairment Loss on Cryptocurrencies | – | 6,988 | N/A | | Fair Value Gain on Financial Liabilities at Fair Value Through Profit or Loss | – | (7,609) | N/A | [7. Income Tax Expense](index=13&type=section&id=7.%20Income%20Tax%20Expense) Income tax expense decreased by 14% to RMB 4,213 thousand, with China corporate income tax at 25% and a 10% withholding tax on Chinese subsidiaries' profit distributions Details of Income Tax Expense | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Current Period Provision | 3,205 | 4,674 | -31.5% | | Deferred Tax | 1,008 | 222 | 354.1% | | **Total** | **4,213** | **4,896** | -14.0% | - China corporate income tax is calculated at a **25%** rate, and Chinese subsidiaries distributing profits to overseas shareholders are subject to a **10%** withholding tax[33](index=33&type=chunk)[34](index=34&type=chunk) [8. Earnings Per Share](index=13&type=section&id=8.%20Earnings%20Per%20Share) Basic and diluted earnings per share decreased by 27.3% to RMB 0.48 cents, with no difference between basic and diluted due to the absence of dilutive shares Earnings Per Share Calculation Data | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit for the Period Attributable to Owners of the Company | 4,718 | 6,389 | | Weighted Average Number of Ordinary Shares | 990,000,000 | 972,479,784 | - Diluted earnings per share are the same as basic earnings per share, as there were no potentially dilutive ordinary shares outstanding in both the current and prior periods[37](index=37&type=chunk) [9. Dividends](index=14&type=section&id=9.%20Dividends) The Board does not recommend an interim dividend for the six months ended June 30, 2025, to conserve capital for business development - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (2024: nil), to reserve capital for the Group's business development[38](index=38&type=chunk) [10. Right-of-Use Assets and Property, Plant and Equipment](index=14&type=section&id=10.%20Right-of-Use%20Assets%20and%20Property%2C%20Plant%20and%20Equipment) The Group had no new right-of-use assets or property, plant and equipment acquisitions in the current period, unlike the prior year - For the six months ended June 30, 2025, the Group had no additions to right-of-use assets or acquisitions of property, plant and equipment[39](index=39&type=chunk) - For the six months ended June 30, 2024, the Group added approximately **RMB 977 thousand** in right-of-use assets and approximately **RMB 201 thousand** in property, plant and equipment[39](index=39&type=chunk) [11. Trade and Other Receivables](index=14&type=section&id=11.%20Trade%20and%20Other%20Receivables) Total trade and other receivables decreased by 30.5% to RMB 36,701 thousand, driven by lower net trade receivables, while contract assets slightly increased Details of Trade and Other Receivables | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Net Trade Receivables | 9,532 | 26,186 | -63.6% | | Net Contract Assets | 26,989 | 26,367 | 2.4% | | Prepayments and Deposits | 169 | 307 | -45.0% | | Other Recoverable Taxes | 11 | 11 | 0% | | **Total** | **36,701** | **52,871** | -30.5% | - The Group generally grants trade customers credit terms of **0 to 180 days** and monitors overdue amounts[40](index=40&type=chunk)[41](index=41&type=chunk) [12. Trade and Other Payables](index=15&type=section&id=12.%20Trade%20and%20Other%20Payables) Total trade and other payables decreased by 7.2% to RMB 130,582 thousand, with a notable decrease in trade payables and an increase in amounts due to the controlling party Details of Trade and Other Payables | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Trade Payables | 40,243 | 56,013 | -28.1% | | Accruals and Other Payables | 13,829 | 12,250 | 12.9% | | Amounts Due to the Company's Direct and Ultimate Controlling Party | 76,510 | 72,454 | 5.6% | | **Total** | **130,582** | **140,717** | -7.2% | - Amounts due to the company's direct and ultimate controlling party, Praise Fortune Limited, are unsecured, interest-free, and repayable on demand[42](index=42&type=chunk) [13. Share Capital](index=16&type=section&id=13.%20Share%20Capital) As of June 30, 2025, issued share capital was 990,000 thousand shares, including new shares issued in 2024 to capitalize RMB 11,806 thousand in debt Changes in Share Capital | Item | Number of Shares (thousand shares) | Amount (RMB thousands) | | :--- | :--- | :--- | | As at December 31, 2023 and January 1, 2024 | 928,679 | 86,149 | | Issue of New Shares (February 22, 2024) | 61,321 | 5,569 | | As at December 31, 2024 and June 30, 2025 | 990,000 | 91,718 | - On February 22, 2024, the company settled **RMB 11,806 thousand** in debt by issuing **61,320,755** ordinary shares[44](index=44&type=chunk) [Management Discussion and Analysis](index=17&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews China's environmental industry trends, the Group's financial performance decline due to product sales, and future strategies focusing on AI integration and national alignment for growth [Industry and Business Review](index=17&type=section&id=Industry%20and%20Business%20Review) China's environmental industry is integrating green and digital technologies with AI, making smart solutions mandatory; the Group has four projects totaling RMB 82.3 million expected by year-end - China's environmental protection industry is guided by "high-quality development" and "new productive forces" strategies, deeply integrating green and digital technologies[45](index=45&type=chunk) - The deep integration of Artificial Intelligence (AI) technology with environmental engineering has become a core competency, with smart water platforms and AI energy-saving control systems being mandatory requirements for project bidding[45](index=45&type=chunk) - As of June 30, 2025, the Group has four projects on hand with a total engineering value of **RMB 82.3 million** yet to be completed, expected by the end of 2025[46](index=46&type=chunk) [Financial Review](index=17&type=section&id=Financial%20Review) Total revenue decreased by 1.8% to RMB 113.3 million, gross profit fell by 14.2% to RMB 15.3 million, and profit attributable to owners decreased by 26.2% to RMB 4.7 million Summary of Financial Review for H1 2025 | Metric | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 113.3 | 115.4 | -1.8% | | Gross Profit | 15.3 | 17.855 | -14.2% | | Gross Profit Margin | 13.5% | 15.5% | -2.0pp | | Profit Attributable to Owners of the Company | 4.7 | 6.4 | -26.2% | | Basic and Diluted Earnings Per Share (RMB cents) | 0.48 | 0.66 | -27.3% | - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025, to reserve capital for the Group's business development[48](index=48&type=chunk) [Outlook](index=18&type=section&id=Outlook) The Group anticipates new opportunities from AI, digitalization, and green transformation, focusing on AI-empowered core business, diversified investments, and national alignment for sustained growth - The global economy is evolving driven by AI, digitalization, and green transformation, bringing opportunities for industrial upgrading and business model innovation[49](index=49&type=chunk) - The Group will focus on deepening its core business (leveraging AI empowerment), expanding diversified layouts (investing in the "AI+" industry chain), strengthening synergistic cooperation, and aligning with national plans to achieve sustained business growth and value enhancement[50](index=50&type=chunk)[51](index=51&type=chunk) [Exposure to Exchange Rate Fluctuations](index=19&type=section&id=Exposure%20to%20Exchange%20Rate%20Fluctuations) The Group's transactions, liabilities, and bank deposits are primarily in RMB and HKD, with no foreign currency hedging instruments held as of June 30, 2025 - The vast majority of the Group's operating transactions and liabilities are denominated in RMB and HKD, with bank deposits also primarily in RMB and HKD[53](index=53&type=chunk) - As of June 30, 2025, the Group held no foreign currency bank liabilities, foreign exchange contracts, interest or currency swaps, or other financial derivative instruments for hedging purposes[53](index=53&type=chunk) [Capital Commitments and Contingent Liabilities](index=19&type=section&id=Capital%20Commitments%20and%20Contingent%20Liabilities) As of June 30, 2025, the Group had no capital expenditure commitments and believes its product warranty liabilities are not significant due to supplier coverage - As of June 30, 2025, the Group had no capital expenditure commitments for the acquisition of property, plant and equipment[54](index=54&type=chunk) - The Group provides product warranty services to customers (six months to two years) and benefits from supplier warranty services, with Directors believing period-end warranty liabilities are not significant[54](index=54&type=chunk) [Pledge of Assets](index=19&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group had no pledge of assets, consistent with the prior year-end - As of June 30, 2025, the Group had no pledge of assets[55](index=55&type=chunk) [Other Information](index=20&type=section&id=Other%20Information) This section covers employee relations, listed securities transactions, audit committee review, corporate governance practices, and interim results publication, noting a deviation in board meeting frequency [Relationship with Employees and Key Stakeholders](index=20&type=section&id=Relationship%20with%20Employees%20and%20Key%20Stakeholders) The Group employed 90 employees, with total staff costs of RMB 6.5 million, and maintains good employee relations through competitive remuneration and training - As of June 30, 2025, the Group employed **90 employees**[56](index=56&type=chunk) Total Staff Costs | Period | Total Staff Costs (RMB thousands) | | :--- | :--- | | For the six months ended June 30, 2025 | 6,500 | | For the six months ended June 30, 2024 | 9,900 | [Purchase, Sale or Redemption of the Company's Listed Securities](index=20&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities during the six months ended June 30, 2025 - For 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[57](index=57&type=chunk) [Audit Committee Review](index=20&type=section&id=Audit%20Committee%20Review) The Audit Committee, composed of three independent non-executive directors, reviewed the Group's interim results and is responsible for financial reporting and internal controls - The Audit Committee, comprising three independent non-executive directors, has reviewed the Group's interim results and report for the six months ended June 30, 2025[58](index=58&type=chunk) [Corporate Governance](index=20&type=section&id=Corporate%20Governance) The Board is committed to high corporate governance, with a deviation from the code regarding board meeting frequency, but directors confirm compliance with securities dealing rules [At Least Four Regular Board Meetings Annually](index=20&type=section&id=At%20Least%20Four%20Regular%20Board%20Meetings%20Annually) The company deviates from Code Provision C.5.1 by holding only two board meetings annually, citing no quarterly results publication as the reason - The company has not complied with Corporate Governance Code Provision C.5.1, holding only two board meetings annually instead of at least four, as it does not publish quarterly results[59](index=59&type=chunk)[60](index=60&type=chunk) [Directors' Securities Transactions](index=21&type=section&id=Directors'%20Securities%20Transactions) The company adopted a strict securities dealing code, which directors confirmed compliance with, and no employees with inside information breached it - The company has adopted a strict code for securities dealing, which Directors confirmed compliance with during the period[61](index=61&type=chunk) - The code also applies to all employees who may possess inside information, and to the company's knowledge, no employees have breached it[61](index=61&type=chunk) [Publication of Interim Results and Interim Report](index=21&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report) The interim results announcement is published on HKEX and company websites, with the full interim report to be despatched to shareholders and published online - The interim results announcement has been published on the websites of Hong Kong Exchanges and Clearing Limited and the company, and the interim report will be despatched to shareholders and published on the aforementioned websites in due course[62](index=62&type=chunk)

Core Viewpoint - Pan-Asia Environmental (00556.HK) announced that it will hold a board meeting on August 27, 2025, to review and approve the interim results for the six months ending June 30, 2025, and to consider the proposal for an interim dividend, if any [1] Summary by Category - **Company Announcement** - The company will convene a board meeting on August 27, 2025 [1] - The meeting will focus on reviewing the interim results for the six months ending June 30, 2025 [1] - The board will also consider the proposal for an interim dividend [1]

Group 1 - The company, Pan-Asia Environmental Protection (00556.HK), announced a board meeting scheduled for August 27, 2025, to consider and approve the interim results for the six months ending June 30, 2025, and to discuss the proposed interim dividend, if any, along with other matters [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。 （股份代號：556） 董事會召開日期 泛 亞 環 保 集 團 有 限 公 司（「本公司」及 其 附 屬 公 司「本集團」）董 事 會（「董事會」）兹 通 告 謹 定 於 二 零 二 五 年 八 月 二 十 七 日（星 期 三）舉 行 董 事 會 會 議，以 考 慮 及 通 過 本 集 團 截 至 二 零 二 五 年 六 月 三 十 日 止 的 六 個 月 中 期 業 績，及 建 議 之 中 期 股 息 （如 有），以 及 處 理 其 他 事 項。 承董事會命 （ 於 開 曼 群 島 註 冊 成 立 之 有 限 公 司 ） 泛亞環保集團有限公司 主 席 郭建南 香 港，二 零 二 五 年 八 月 十 五 日 於 本 公 告 日 期，本 公 司 董 事 為： 執 行 董 事： 獨 立 非 執 行 董 事： 郭建南先生 陳學政先生 ZHU Duke Li ...

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: 泛亞環保集團有限公司（於開曼群島註冊成立之有限公司） 呈交日期: 2025年8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) | 00556 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 4,000,000,000 | HKD | | 0.1 HKD | | 400,000,000 | | 增加 / 減少 (-) | | | | | | HKD | | | | 本月底結存 | | | 4,000,000,000 | HKD | | 0.1 HKD | | 400,000,000 | 本月底法定/ ...

Financial Performance - The Group achieved a net profit of RMB 17.5 million for the year ended December 31, 2024, compared to a net profit of RMB 1.5 million in 2023[10]. - Total revenue increased by 14.1% to RMB 251.5 million in 2024, up from RMB 220.3 million in 2023, driven by business development and growing demand for eco-friendly solutions[11]. - Gross profit rose by 27.4% to RMB 36.2 million, with a gross profit margin of 14.4%, compared to 12.9% in 2023[11]. - Profit attributable to owners of the Company was RMB 17.2 million, with basic and diluted earnings per share at RMB 1.76 cents, up from RMB 0.17 cents in 2023[12]. - In 2024, the sale of environmental protection (EP) products and equipment generated revenue of RMB 251.5 million, an increase of 14.1% from RMB 220.3 million in 2023, accounting for 100% of the Group's total revenue[25]. Assets and Liabilities - The Group's total assets as of December 31, 2024, amounted to RMB 1,315.9 million, an increase of RMB 23.2 million compared to RMB 1,292.7 million in 2023[33]. - The Group's total liabilities decreased to RMB 151.0 million as of December 31, 2024, down from RMB 155.2 million in 2023, reflecting a reduction of RMB 4.2 million[33]. - The Group's total equity increased to RMB 1,164.9 million as of December 31, 2024, compared to RMB 1,137.5 million in 2023, indicating growth of RMB 27.4 million[33]. - The gearing ratio as of December 31, 2024, was 6.4%, down from 8.3% in 2023, indicating improved financial stability[33]. Strategic Initiatives - The Group plans to leverage AI technologies to enhance market competitiveness and explore new business opportunities in the "AI+" sector[16]. - Collaboration with partners like Chengdu Qingshu Technology Co. Ltd. is aimed at capturing synergies in the AI industry[17]. - The Group will align with national long-term planning and market trends to identify investment opportunities for sustainable growth[18]. - Continuous efforts will be made to improve comprehensive service capabilities in environmental protection engineering solutions[10]. - The Group is committed to contributing to green development and the construction of a beautiful China through its services[10]. - The ongoing battle against pollution and advancements in environmental technology are expected to provide broader development prospects for the industry[10]. Corporate Governance - The Board of Directors consists of six members, including three Executive Directors and three Independent Non-executive Directors, ensuring a balanced composition for effective governance[62]. - The company has complied with all applicable code provisions of the Corporate Governance Code throughout the year, except for three specific provisions related to the separation of roles and regular board meetings[52]. - The company is committed to high ethical standards, aiming to maximize shareholder wealth while benefiting employees and the communities in which it operates[46]. - The company has established a corporate governance framework based on the Corporate Governance Code, enhancing the Board's ability to oversee business conduct[51]. - The company conducted professional and vocational training for its employees during the year, indicating a focus on employee development[43]. Risk Management and Compliance - The Board is responsible for evaluating and determining the nature and extent of risks in achieving strategic objectives[166]. - An ongoing process for identifying, evaluating, and managing significant risks has been established, including risk identification, evaluation, and management[169]. - The Company engaged an external professional firm for internal audit functions to review the adequacy and effectiveness of risk management and internal control systems[174]. - The Audit Committee assists the Board in overseeing the design, implementation, and monitoring of risk management and internal control systems[166]. - The Company has implemented control procedures to prohibit unauthorized access and use of inside information[181]. Employee Compensation and Development - Total remuneration costs for the year ended December 31, 2024, were RMB 14.6 million, an increase from RMB 12.9 million in 2023[40]. - Total employee compensation, including director remuneration, amounted to RMB 14.6 million for the year ended December 31, 2024, compared to RMB 12.9 million in 2023, reflecting an increase of approximately 13.2%[43]. - The company employed approximately 89 employees as of December 31, 2024, maintaining competitive salary levels and conducting annual reviews based on market conditions[43]. - The Company provides continuous professional development for Directors to keep them informed of regulatory developments and changes[97]. - The Company encourages all Directors to participate in relevant training courses at the Company's expense to enhance their knowledge and skills[99]. Board Diversity and Composition - The Company has adopted a Board Diversity Policy to achieve diversity at the Board level, recognizing its importance for maintaining competitive advantage[127]. - The Nomination Committee is committed to diversity at all levels and considers various aspects, including gender, age, and professional qualifications, in its assessments[128]. - The Board has achieved a gender diversity target of at least 20% female Directors, with current representation at 17%[138]. - The overall workforce gender ratio is 22% female and 78% male, with 20 female employees out of 90 total[138]. - The Board composition includes no female representation in senior management, which is 100% male[138].

[Corporate Information](index=2&type=section&id=Corporate%20Information) [Corporate Information](index=2&type=section&id=Corporate%20Information) This section outlines the company's basic registration, governance, and key personnel, including the recent CEO transition - **Company senior management change**: Mr. Guo Jiannan resigned as CEO on April 12, 2024, and was succeeded by Mr. Zhu Duke Li[4](index=4&type=chunk) [Management Discussion and Analysis](index=4&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=4&type=section&id=BUSINESS%20REVIEW) The company expanded into AI and Web 3.0 via Pan Asia USA, complementing its stable environmental business operations - Environmental Products and Equipment Segment: Completed 4 water treatment and 1 flue gas treatment projects in H1, achieving sales revenue of **RMB 115.4 million**; 3 projects remain with **RMB 223.6 million** uncompleted contract value[10](index=10&type=chunk) - New Business Expansion: Established Pan Asia USA, a non-wholly owned US subsidiary, to develop Web 3.0 and AI businesses, including a decentralized disaster recovery storage network and GPU computing power leasing agency services[10](index=10&type=chunk) Initial AI Business Revenue | Business Type | Revenue (USD) | | :--- | :--- | | Decentralized Disaster Recovery Storage Network | 11,000 | | GPU Computing Power Leasing Agency | 240,000 | [Financial Review](index=5&type=section&id=FINANCIAL%20REVIEW) The company's H1 2024 financial performance was strong, with revenue growth and a substantial increase in profit attributable to owners Key Financial Indicators for H1 2024 | Indicator | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue (RMB million) | 115.4 | 108.9 | +5.9% | | Gross Profit (RMB thousand) | 17,855 | - | +10.3% | | Gross Margin | 15.5% | 14.9% | +0.6pp | | Profit Attributable to Owners (RMB thousand) | 6,390 | 2,070 | +208.2% | | Basic and Diluted EPS (RMB cents) | 0.66 | 0.25 | +164% | - Revenue from AI businesses, including **RMB 1.71 million** in agency fees and **RMB 75 thousand** net income from decentralized disaster recovery storage solutions, is classified under "Net Other Income"[12](index=12&type=chunk) [Prospects](index=5&type=section&id=PROSPECTS) The Group plans to deepen its low-carbon economy and AI focus, enhancing environmental services and expanding Web 3.0 and GPU computing power businesses - The company proposes changing its Chinese name to "圖靈人工智能科技集團有限公司" and English name to "**Turing AI Technologies Group Limited**" to emphasize its commitment to AI and Web 3.0 development[16](index=16&type=chunk)[17](index=17&type=chunk) - For Web 3.0 business, the company will collaborate with PowerMeta to build up to **28 disaster recovery nodes**, with **14 nodes** already deployed on the mainnet[15](index=15&type=chunk)[17](index=17&type=chunk) - In early August 2024, Pan Asia USA signed an exclusive agency agreement with PowerMeta for GPU computing power leasing services in Southeast Asia and Australia[15](index=15&type=chunk)[17](index=17&type=chunk) [Liquidity and Financial Resources](index=8&type=section&id=LIQUIDITY%20AND%20FINANCIAL%20RESOURCES) As of June 30, 2024, the Group maintains a robust financial position with ample liquidity, low leverage, and substantial cash reserves Financial Position Summary (As of June 30, 2024) | Indicator | June 30, 2024 (RMB million) | December 31, 2023 (RMB million) | | :--- | :--- | :--- | | Total Assets | 1,330.7 | 1,292.7 | | Total Liabilities | 175.0 | 155.2 | | Total Equity | 1,155.7 | 1,137.5 | | Cash and Cash Equivalents | 1,248.9 | 1,235.8 | | Equity-to-Debt Ratio | 7.9% | 8.3% | - As of June 30, 2024, the Group pledged approximately **RMB 23.72 million** in cryptocurrency for joint operations[26](index=26&type=chunk) - The Group maintains a prudent financial policy, with most transactions, liabilities, and bank deposits denominated in RMB and HKD, holding no financial derivatives for hedging purposes[23](index=23&type=chunk)[24](index=24&type=chunk) [Other Information](index=9&type=section&id=Other%20Information) [Corporate Governance and Compliance](index=9&type=section&id=Corporate%20Governance%20and%20Compliance) This section details the company's compliance and corporate governance practices, including adherence to securities trading codes and board meeting frequency - The company previously deviated from the corporate governance code requiring separation of Chairman and CEO roles, but compliance was achieved with the new CEO appointment on April 12, 2024[39](index=39&type=chunk) - The company deviated from the code requiring at least four annual board meetings, citing no necessity for quarterly meetings due to non-disclosure of quarterly results[39](index=39&type=chunk) Major Shareholder Holdings (As of June 30, 2024) | Shareholder Name | Number of Shares (Long Position) | Percentage of Issued Share Capital | | :--- | :--- | :--- | | Mr. Jiang Xin | 358,568,000 | 36.22% (Combined) | | Praise Fortune Limited | 356,568,000 | 36.02% | | China Sky Global Investment Limited | 250,000,000 | 25.25% | | Hongkong Jinggangshan International Co. Limited | 80,000,000 | 8.08% | [Condensed Consolidated Financial Statements](index=13&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=13&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2024, the company's profitability significantly improved, with a substantial increase in profit for the period Key Items from Statement of Profit or Loss (For the six months ended June 30, RMB thousand) | Item | 2024 (Unaudited) | 2023 (Unaudited) | | :--- | :--- | :--- | | Revenue | 115,410 | 108,938 | | Gross Profit | 17,855 | 16,193 | | Profit Before Tax | 11,954 | 4,995 | | Profit for the Period | 7,058 | 2,073 | | Profit Attributable to Owners of the Company | 6,389 | 2,073 | | Total Comprehensive Income/(Loss) for the Period | 6,402 | (1,297) | [Condensed Consolidated Statement of Financial Position](index=15&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, the company's balance sheet is robust, with total assets and net assets steadily improving Key Items from Statement of Financial Position (RMB thousand) | Item | June 30, 2024 (Unaudited) | December 31, 2023 (Audited) | | :--- | :--- | :--- | | **ASSETS** | | | | Non-current Assets | 29,170 | 4,362 | | Current Assets | 1,301,521 | 1,288,363 | | **TOTAL ASSETS** | **1,330,691** | **1,292,725** | | **LIABILITIES** | | | | Current Liabilities | 128,279 | 133,637 | | Non-current Liabilities | 46,711 | 21,595 | | **TOTAL LIABILITIES** | **174,990** | **155,232** | | **NET ASSETS** | **1,155,701** | **1,137,493** | | **TOTAL EQUITY** | **1,155,701** | **1,137,493** | [Condensed Consolidated Statement of Changes in Equity](index=17&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) During the reporting period, total equity increased, primarily driven by profit for the period and new share issuance - Total equity increased from **RMB 1,137,493 thousand** to **RMB 1,155,701 thousand**[50](index=50&type=chunk) - Key drivers for the equity increase include: profit for the period (**RMB 6,389 thousand**) and new share issuance (**RMB 11,806 thousand**)[50](index=50&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=18&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) In H1 2024, the company's cash flow significantly improved, with operating activities generating a net inflow and increased cash equivalents Cash Flow Statement Summary (For the six months ended June 30, RMB thousand) | Item | 2024 (Unaudited) | 2023 (Unaudited) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 4,666 | (3,647) | | Net Cash from Investing Activities | 1,056 | 1,597 | | Net Cash from Financing Activities | 6,953 | 4,298 | | Net Increase in Cash and Cash Equivalents | 12,675 | 2,248 | | Cash and Cash Equivalents at End of Period | 1,248,889 | 1,204,941 | [Notes to the Condensed Consolidated Interim Financial Statements](index=19&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) [2. Basis of Preparation](index=19&type=section&id=2.%20BASIS%20OF%20PREPARATION) This section details the financial statements' preparation basis under HKAS 34, including new accounting policies for AI and cryptocurrency - Agency Fee Revenue: The Group recognizes agency fee revenue only after the introduced client signs an agreement and pays fees to the partner, PowerMeta[58](index=58&type=chunk) - Cryptocurrency Accounting Treatment: Held cryptocurrencies are treated as intangible assets with indefinite useful lives, measured at cost less accumulated impairment losses[64](index=64&type=chunk) - Cryptocurrency Borrowings: Cryptocurrencies borrowed from related parties are classified as "financial liabilities at fair value through profit or loss," with fair value changes recognized in current profit or loss[64](index=64&type=chunk)[145](index=145&type=chunk) [3. Critical Accounting Judgements and Key Sources of Estimation Uncertainty](index=28&type=section&id=3.%20CRITICAL%20ACCOUNTING%20JUDGEMENTS%20AND%20KEY%20SOURCES%20OF%20ESTIMATION%20UNCERTAINTY) This section outlines management's key accounting judgments, particularly for new businesses like cryptocurrency and decentralized storage solutions - Cryptocurrency Accounting Judgment: Given the absence of specific HKFRSs guidance for cryptocurrency, management judged to treat it as an indefinite-lived intangible asset using the cost model[88](index=88&type=chunk) - Cryptocurrency Mining Revenue Recognition Judgment: Lacking specific guidance, management exercised significant judgment in recognizing revenue from decentralized disaster recovery storage solutions (mining), measuring it based on the fair value of cryptocurrencies received[90](index=90&type=chunk) [4. Revenue and Segment Reporting](index=34&type=section&id=4.%20REVENUE%20AND%20SEGMENT%20REPORTING) During the reporting period, the Group's total revenue was entirely from the "Environmental Products and Equipment" segment in Mainland China Segment Revenue and Profit (For the six months ended June 30, 2024, RMB thousand) | Segment | Revenue | Profit (Adjusted EBITDA) | | :--- | :--- | :--- | | Environmental Products and Equipment | 115,410 | 17,941 | | Environmental Construction Services | 0 | 0 | | **Total** | **115,410** | **17,941** | - All revenue from external customers originated from China (place of registration)[105](index=105&type=chunk) [11. Cryptocurrencies](index=42&type=section&id=11.%20CRYPTOCURRENCIES) As of June 30, 2024, the company reported Filecoins as a new asset, with a carrying value after impairment losses Changes in Cryptocurrency Carrying Value (RMB thousand) | Item | Amount | | :--- | :--- | | Cost | 30,747 | | Accumulated Impairment | (6,988) | | Exchange Differences | 33 | | **Carrying Value (June 30, 2024)** | **23,792** | - The company recognized an impairment loss of **RMB 6.988 million** due to Filecoins' market price being significantly below cost[128](index=128&type=chunk)[130](index=130&type=chunk) - Approximately **RMB 23.723 million** in cryptocurrency (**743,012 Filecoins**) was pledged to the Mainnet network for 540-day joint operations supporting decentralized disaster recovery storage solutions[123](index=123&type=chunk)[124](index=124&type=chunk) [18. Material Related Party Transactions](index=52&type=section&id=18.%20MATERIAL%20RELATED%20PARTY%20TRANSACTIONS) The Group engaged in significant related party transactions, including agency fee income, cryptocurrency borrowings, and payables to its ultimate controlling party - Received agency fee income of **RMB 1.708 million** from related company PowerMeta[160](index=160&type=chunk) - Borrowed cryptocurrency from related company 3 Body, resulting in a **RMB 25.927 million** financial liability at fair value through profit or loss[162](index=162&type=chunk) Key Balances with Related Parties (RMB thousand) | Related Party | Item | June 30, 2024 | | :--- | :--- | :--- | | PowerMeta | Amounts Receivable from Related Companies | 1,453 | | Praise Fortune Limited | Amounts Payable to Ultimate Controlling Party | (70,005) | | 3 Body | Financial Liabilities at Fair Value Through Profit or Loss | (25,927) | [21. Events After the Reporting Period](index=57&type=section&id=21.%20EVENTS%20AFTER%20THE%20REPORTING%20PERIOD) Post-reporting period, the company proposed a name change to "Turing AI Technologies Group Limited" and secured an exclusive GPU computing power agency agreement - On August 13, 2024, the Board proposed changing the company name from "Pan Asia Environmental Group Limited" to "**Turing AI Technologies Group Limited**"[174](index=174&type=chunk) - On August 5, 2024, a company subsidiary entered into an exclusive agency agreement with PowerMeta for GPU computing power leasing services in Southeast Asia and Australia[174](index=174&type=chunk)