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: 天德化工控股有限公司 呈交日期: 2025年11月3日 I. 法定/註冊股本變動 II. 已發行股份及/或庫存股份變動 | 1. 股份分類 | 普通股 | | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00609 | 說明 | | | | | | | | | | 已發行股份（不包括庫存股份）數目 | | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | | 878,418,000 | | 0 | | 878,418,000 | | 增加 / 減少 (-) | | | | | | | | | | 本月底結存 | | | | 878,418,000 | | 0 | | 878,418,000 | 第 2 頁 共 10 頁 v 1.1.1 III ...

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: 天德化工控股有限公司 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) | 00609 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 100,000,000,000 | HKD | | 0.01 | HKD | | 1,000,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 100,000,000,000 | HKD | | 0.01 | HKD | | 1,000,000,000 | ...

Tiande Chemical Holdings Limited (Incorporated in the Cayman Islands with limited liability) (Stock code: 609) N O T I F I C AT I O N L E T T E R Dear Non-registered Holders(Note 1) , Tiande Chemical Holdings Limited (the "Company") – Notice of Publication of Interim Report 2025 (the "Current Corporate Communications") Please note that both the English and Chinese versions of all future Corporate Communications will be available electronicall y on the website of the Company at www.tdchem.com and the HKEXnew ...

Tiande Chemical Holdings Limited (Incorporated in the Cayman Islands with limited liability) To ensure timely receipt of the latest Corporate Communications, the Company recommends you provide your email address by sca nning your personalized QR code printed on the enclosed reply form (the "Reply Form"). Alternatively, you may sign and return the Reply Form to the Share Registrar, Computershare Hong Kong Investor Services Limited, at 17M Floor, Hopewell Centre, 183 Queen's Road Ea st, Wanchai, Hong Kong. (S ...

[Corporate Information](index=2&type=section&id=Corporate%20Information) This section provides the company's basic information, including board members, committee compositions, contact details, and listing information, outlining its governance structure and external communication channels [Corporate Information and Governance Structure](index=3&type=section&id=Corporate%20Information) This section details the company's fundamental information, including board composition, committee structures, key contacts, and listing specifics, illustrating its governance framework - The Board of Directors comprises executive directors including Mr. Liu Yang (Chairman), Mr. Wang Zijiang, Mr. Chen Xiaohua (General Manager), and independent non-executive directors including Mr. Liang Jinyun, Mr. Liu Chenguang, and Ms. Shan Honghong[4](index=4&type=chunk) - The Company has established an Audit Committee, Remuneration Committee, Nomination Committee, and Safety and Environmental Protection Committee to ensure effective corporate governance[5](index=5&type=chunk) - The Company's stock code is **609**, listed on The Stock Exchange of Hong Kong Limited, with investor relations contact at **852-2866 6848**[9](index=9&type=chunk)[10](index=10&type=chunk) [Condensed Consolidated Income Statement](index=5&type=section&id=Condensed%20Consolidated%20Income%20Statement) This section presents the company's financial performance, showing a 5.6% decrease in revenue to RMB 932.3 million and a 19.0% decline in gross profit to RMB 116.7 million for the six months ended June 30, 2025 [Financial Performance Overview](index=5&type=section&id=Condensed%20Consolidated%20Income%20Statement) For the six months ended June 30, 2025, the company's revenue decreased by 5.6% to RMB 932.3 million, gross profit fell by 19.0% to RMB 116.7 million, and profit for the period significantly dropped by 43.2% to RMB 19.2 million Condensed Consolidated Income Statement (RMB'000) | Metric | 2025年6月30日止六个月 (RMB'000) | 2024年6月30日止六个月 (RMB'000) | 同比变化 (%) | | :--- | :--- | :--- | :--- | | Revenue | 932,301 | 987,765 | -5.6% | | Cost of sales | (815,625) | (843,681) | -3.3% | | Gross profit | 116,676 | 144,084 | -19.0% | | Other income and gains | 18,100 | 18,166 | -0.4% | | Selling expenses | (40,747) | (36,327) | +12.2% | | Administrative and other operating expenses | (52,197) | (83,289) | -37.3% | | Finance costs | (6,395) | (638) | +902.4% | | Profit before income tax | 35,437 | 41,996 | -15.6% | | Income tax expense | (16,206) | (8,146) | +99.0% | | Profit for the period | 19,231 | 33,850 | -43.2% | | Profit attributable to owners of the Company | 35,154 | 42,357 | -17.0% | | Basic earnings per share | RMB0.040 | RMB0.049 | -18.4% | [Condensed Consolidated Statement of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) This section details the company's total comprehensive income, which decreased significantly by 62.3% to RMB 13.1 million for the six months ended June 30, 2025, primarily due to negative currency translation differences [Analysis of Total Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, profit for the period was RMB 19.2 million, but negative currency translation differences of RMB 6.2 million led to a total comprehensive income of RMB 13.1 million, a 62.3% decrease year-on-year Condensed Consolidated Statement of Comprehensive Income (RMB'000) | Metric | 2025年6月30日止六个月 (RMB'000) | 2024年6月30日止六个月 (RMB'000) | 同比变化 (%) | | :--- | :--- | :--- | :--- | | Profit for the period | 19,231 | 33,850 | -43.2% | | Other comprehensive income (currency translation differences) | (6,175) | 737 | -938.4% | | Total comprehensive income for the period | 13,056 | 34,587 | -62.3% | | Total comprehensive income attributable to owners of the Company | 28,803 | 43,242 | -33.4% | | Total comprehensive income attributable to non-controlling interests | (15,747) | (8,655) | +81.9% | [Condensed Consolidated Statement of Financial Position](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This section outlines the company's assets, liabilities, and equity as of June 30, 2025, showing a slight decrease in total assets less current liabilities and stable total equity [Assets, Liabilities, and Equity Status](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets less current liabilities were RMB 2,529.4 million, a slight decrease from 2024 year-end, with net current assets declining to RMB 867.3 million, while total equity remained stable at RMB 2,504.6 million Condensed Consolidated Statement of Financial Position (RMB'000) | Metric | 2025年6月30日 (RMB'000) | 2024年12月31日 (RMB'000) | 变化 (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 1,662,114 | 1,659,245 | +0.2% | | Current assets | 1,520,861 | 1,425,188 | +6.7% | | Current liabilities | 653,606 | 524,507 | +24.6% | | Net current assets | 867,255 | 900,681 | -3.7% | | Total assets less current liabilities | 2,529,369 | 2,559,926 | -1.2% | | Non-current liabilities | 24,778 | 45,002 | -44.9% | | Net assets | 2,504,591 | 2,514,924 | -0.4% | | Total equity | 2,504,591 | 2,514,924 | -0.4% | - Trade and bills receivables increased by **22.3%** from **RMB 377,774 thousand** at the end of 2024 to **RMB 461,932 thousand**[15](index=15&type=chunk) - Bank borrowings increased by **60.9%** from **RMB 220,134 thousand** at the end of 2024 to **RMB 354,191 thousand**[15](index=15&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This section analyzes the company's cash flows, showing a significant 66.8% decrease in net cash from operating activities, a shift to net cash inflow from investing activities, and a stable net cash from financing activities [Cash Flow Analysis](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash from operating activities significantly decreased by 66.8% to RMB 50.3 million, while investing activities shifted to a net inflow of RMB 209.6 million, primarily due to fixed deposit withdrawals Condensed Consolidated Statement of Cash Flows (RMB'000) | Metric | 2025年6月30日止六个月 (RMB'000) | 2024年6月30日止六个月 (RMB'000) | 同比变化 (%) | | :--- | :--- | :--- | :--- | | Net cash generated from operating activities | 50,349 | 151,845 | -66.8% | | Net cash generated from / (used in) investing activities | 209,602 | (209,339) | +199.9% | | Net cash generated from financing activities | 22,104 | 25,381 | -12.8% | | Net increase / (decrease) in cash and cash equivalents | 282,055 | (32,113) | +978.2% | | Cash and cash equivalents at end of period | 633,913 | 144,371 | +339.1% | - Non-cash financing activities include supplier financing arrangements with banks, where banks directly paid **RMB 106,400 thousand** to suppliers, which the Group classified as "bank borrowings"[20](index=20&type=chunk)[21](index=21&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This section details the changes in the company's equity, showing a slight increase in equity attributable to owners of the Company, influenced by dividend declarations, share issuance from option exercises, and profit for the period [Equity Composition and Changes](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) As of June 30, 2025, equity attributable to owners of the Company slightly increased to RMB 2,425.5 million, with key changes including a declared 2024 final dividend of RMB 24.2 million, share issuance from option exercises of RMB 0.8 million, and profit for the period of RMB 35.2 million Condensed Consolidated Statement of Changes in Equity (RMB'000) | Metric | 2025年1月1日 (RMB'000) | 2025年6月30日 (RMB'000) | 变动 (RMB'000) | | :--- | :--- | :--- | :--- | | Share capital | 8,060 | 8,069 | +9 | | Share premium | 146,691 | 147,611 | +920 | | Exchange fluctuation reserve | 19,120 | 12,769 | -6,351 | | Retained profits | 1,153,733 | 1,164,669 | +10,936 | | Total equity attributable to owners of the Company | 2,420,103 | 2,425,517 | +5,414 | | Non-controlling interests | 94,821 | 79,074 | -15,747 | | Total equity | 2,514,924 | 2,504,591 | -10,333 | - The 2024 final dividend of **RMB 24,218 thousand** was declared and paid on August 28, 2025[22](index=22&type=chunk) - Share capital increased by **RMB 9 thousand** and share premium increased by **RMB 920 thousand** due to the exercise of share options[22](index=22&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the financial statements, covering general information, accounting policies, critical judgments, segment information, revenue breakdown, finance costs, profit before tax, income tax, dividends, earnings per share, asset details, receivables, payables, share capital, commitments, share-based payments, related party transactions, and fair value measurements [1. General Information and Basis of Preparation and Presentation](index=11&type=section&id=1.%20General%20Information%20and%20Basis%20of%20Preparation%20and%20Presentation) This section outlines Tianneng Chemical Holdings Limited's registration, primary business (R&D, manufacturing, and sales of fine chemical products), and the basis for preparing interim financial statements under HKAS 34 and Listing Rules, noting HKD as functional currency and RMB as presentation currency - The Company's principal business is investment holding, while its subsidiaries are primarily engaged in the research, development, manufacturing, and sales of fine chemical products[26](index=26&type=chunk)[30](index=30&type=chunk) - The unaudited condensed financial information is prepared in accordance with Hong Kong Accounting Standard 34 issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of Appendix D2 to the Listing Rules of the Stock Exchange[27](index=27&type=chunk)[31](index=31&type=chunk) - The Company's functional currency is HKD, but due to its principal operations being in China, the unaudited condensed financial information is presented in RMB[27](index=27&type=chunk)[34](index=34&type=chunk) [2. Significant Accounting Policies](index=12&type=section&id=2.%20Significant%20Accounting%20Policies) This section details the Group's initial application of new and revised HKFRSs, including amendments to HKAS 21 and HKFRS 1 (Lack of Exchangeability), and notes the potential significant impact of HKFRS 18 on presentation and disclosure - The Group first applied the amendments to Hong Kong Accounting Standard 21 and Hong Kong Financial Reporting Standard 1, "Lack of Exchangeability," issued by the Hong Kong Institute of Certified Public Accountants, which had no impact on the interim condensed consolidated financial statements[36](index=36&type=chunk)[37](index=37&type=chunk)[38](index=38&type=chunk) - Hong Kong Financial Reporting Standard 18 (replacing Hong Kong Accounting Standard 1) is expected to have a significant impact on the presentation and disclosure of certain items in the consolidated financial statements, including classifications and subtotals in the income statement[41](index=41&type=chunk)[44](index=44&type=chunk) [3. Critical Judgements and Estimates](index=13&type=section&id=3.%20Critical%20Judgements%20and%20Estimates) The significant judgments and key sources of estimation uncertainty made by management in preparing the interim condensed financial information are consistent with those applied in the 2024 annual financial statements - The significant judgments made by management and the key sources of estimation uncertainty in preparing the unaudited condensed financial information are the same as those applied in the 2024 annual financial statements[42](index=42&type=chunk)[45](index=45&type=chunk) [4. Segment Information](index=13&type=section&id=4.%20Segment%20Information) The Group's chief operating decision maker identifies the R&D, manufacturing, and sales of fine chemical products as a single operating segment, with China remaining the primary revenue source, complemented by significant contributions from overseas markets - The Group's research, development, manufacturing, and sales of fine chemical products are identified as a single operating segment[46](index=46&type=chunk) Revenue by Region (RMB'000) | Region | 2025年6月30日止六个月 (RMB'000) | 2024年6月30日止六个月 (RMB'000) | 同比变化 (%) | | :--- | :--- | :--- | :--- | | China (local) | 643,615 | 708,475 | -9.2% | | India | 103,938 | 124,289 | -16.4% | | United Arab Emirates | 41,891 | 24,533 | +70.8% | | United States | 29,300 | 16,375 | +78.9% | | Brazil | 21,459 | 6,112 | +251.1% | | Others | 92,098 | 107,981 | -14.7% | | **Total** | **932,301** | **987,765** | **-5.6%** | - For the period ended June 30, 2025, no single customer accounted for **10% or more** of the Group's revenue[50](index=50&type=chunk)[51](index=51&type=chunk) [5. Revenue and Other Income and Gains](index=14&type=section&id=5.%20Revenue%20and%20Other%20Income%20and%20Gains) This section details the Group's revenue, primarily from fine chemical product sales, and other income and gains, including bank interest and exchange gains, totaling RMB 932.3 million and RMB 18.1 million respectively for the period Revenue and Other Income and Gains (RMB'000) | Item | 2025年6月30日止六个月 (RMB'000) | 2024年6月30日止六个月 (RMB'000) | 同比变化 (%) | | :--- | :--- | :--- | :--- | | Sales of fine chemical products | 932,301 | 987,765 | -5.6% | | Government grants | 85 | 47 | +80.9% | | Bank interest income | 15,099 | 10,771 | +40.2% | | Net gain on disposal of property, plant and equipment | 1,018 | – | Not applicable | | Net exchange gain | 1,008 | 4,826 | -79.1% | | Total other income and gains | 18,100 | 18,166 | -0.4% | [6. Finance Costs](index=14&type=section&id=6.%20Finance%20Costs) This section discloses the Group's finance costs, which totaled RMB 6.4 million for the six months ended June 30, 2025, a significant 902.4% increase year-on-year, mainly due to interest from asset-backed financing, supplier financing, and advances from related companies Finance Costs (RMB'000) | Item | 2025年6月30日止六个月 (RMB'000) | 2024年6月30日止六个月 (RMB'000) | 同比变化 (%) | | :--- | :--- | :--- | :--- | | Interest on bank borrowings | 2,701 | 638 | +323.4% | | Interest on asset-backed financing | 391 | – | Not applicable | | Interest on supplier financing arrangements | 3,202 | – | Not applicable | | Interest on advances from related companies | 101 | – | Not applicable | | **Total finance costs** | **6,395** | **638** | **+902.4%** | [7. Profit Before Income Tax](index=15&type=section&id=7.%20Profit%20Before%20Income%20Tax) This section details the key expenses deducted or included in calculating profit before income tax, highlighting a 14.5% decrease in total employee costs and a 58.3% decrease in research costs Expenses Deducted/Included in Profit Before Income Tax (RMB'000) | Item | 2025年6月30日止六个月 (RMB'000) | 2024年6月30日止六个月 (RMB'000) | 同比变化 (%) | | :--- | :--- | :--- | :--- | | Directors' emoluments | 1,869 | 2,024 | -7.6% | | Other employee costs | 74,124 | 87,187 | -15.0% | | Contributions to retirement benefit schemes | 7,693 | 8,699 | -11.6% | | **Total employee costs** | **83,686** | **97,910** | **-14.5%** | | Depreciation of right-of-use assets | 1,287 | 1,287 | 0.0% | | Amortisation of intangible assets | 902 | 902 | 0.0% | | Cost of inventories recognised as expense | 815,625 | 843,681 | -3.3% | | Depreciation of property, plant and equipment | 90,487 | 83,700 | +8.1% | | Research costs | 22,669 | 54,426 | -58.3% | - Cost of inventories recognized as expense includes depreciation expenses of **RMB 87,464 thousand** and staff costs of **RMB 58,085 thousand**[63](index=63&type=chunk) - Research costs include depreciation expenses of **RMB 900 thousand** and staff costs of **RMB 12,286 thousand**[63](index=63&type=chunk) [8. Income Tax Expense](index=16&type=section&id=8.%20Income%20Tax%20Expense) This section details the Group's income tax expense, which significantly increased by 99.0% to RMB 16.2 million for the six months ended June 30, 2025, primarily due to a substantial rise in China dividend withholding tax Income Tax Expense (RMB'000) | Item | 2025年6月30日止六个月 (RMB'000) | 2024年6月30日止六个月 (RMB'000) | 同比变化 (%) | | :--- | :--- | :--- | :--- | | Current tax – China corporate income tax | 11,319 | 9,167 | +23.5% | | – Over-provision in prior years | (641) | (1,172) | -45.3% | | – China dividend withholding tax paid | 25,706 | 970 | +2549.1% | | Deferred tax – Credit for the period | (20,178) | (819) | +2363.6% | | **Total income tax expense** | **16,206** | **8,146** | **+99.0%** | - Hong Kong-registered subsidiaries are not subject to Hong Kong profits tax as they had no assessable profits during the period[64](index=64&type=chunk)[66](index=66&type=chunk) - Subsidiaries established in China are subject to China corporate income tax at a rate of **25%**, and China withholding tax at **5% or 10%**[64](index=64&type=chunk)[67](index=67&type=chunk) [9. Dividends](index=17&type=section&id=9.%20Dividends) This section reports the declaration and payment of the 2024 final dividend of HKD 0.03 per share, totaling RMB 24.2 million, and the Board's decision not to recommend an interim dividend for the current period - The 2024 final dividend of **HKD 0.03 per share**, totaling **RMB 24,218 thousand**, was paid on August 28, 2025[68](index=68&type=chunk) - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025 (2024: HKD 0.02 per share)[69](index=69&type=chunk) [10. Earnings Per Share](index=17&type=section&id=10.%20Earnings%20Per%20Share) This section provides data for calculating basic and diluted earnings per share, both of which decreased to RMB 0.040 for the six months ended June 30, 2025, compared to the prior year Earnings Per Share | Metric | 2025年6月30日止六个月 | 2024年6月30日止六个月 | 同比变化 (%) | | :--- | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company (RMB'000) | 35,154 | 42,357 | -17.0% | | Weighted average number of ordinary shares for basic earnings per share ('000 shares) | 877,462 | 869,418 | +0.9% | | Weighted average number of ordinary shares for diluted earnings per share ('000 shares) | 877,506 | 873,606 | +0.4% | | Basic earnings per share (RMB) | 0.040 | 0.049 | -18.4% | | Diluted earnings per share (RMB) | 0.040 | 0.049 | -18.4% | [11. Property, Plant and Equipment / Right-of-use Assets](index=18&type=section&id=11.%20Property%2C%20Plant%20and%20Equipment%20%2F%20Right-of-use%20Assets) This section discloses the Group's investments, disposals, and pledges related to property, plant, and equipment and right-of-use assets, noting a significant increase in property, plant, and equipment acquisitions and certain assets pledged as collateral - For the six months ended June 30, 2025, the Group acquired property, plant and equipment totaling **RMB 97,933 thousand**, a significant increase from **RMB 47,314 thousand** in the prior period[74](index=74&type=chunk)[76](index=76&type=chunk) - During the period, a gain of **RMB 1,018 thousand** was realized from the disposal of property, plant and equipment, and property, plant and equipment with a net book value of **RMB 2,353 thousand** were written off[74](index=74&type=chunk)[76](index=76&type=chunk) - As of June 30, 2025, certain buildings with a net book value of **RMB 50,411 thousand** and right-of-use assets of **RMB 76,645 thousand** were pledged as collateral for bank borrowings of **RMB 175,000 thousand**[75](index=75&type=chunk)[78](index=78&type=chunk) [12. Trade and Bills Receivables](index=19&type=section&id=12.%20Trade%20and%20Bills%20Receivables) This section details the composition, credit terms, aging analysis, and impairment provisions for trade and bills receivables, which totaled RMB 461.9 million (net of provisions) as of June 30, 2025, representing a 22.3% increase from 2024 year-end Trade and Bills Receivables (RMB'000) | Item | 2025年6月30日 (RMB'000) | 2024年12月31日 (RMB'000) | 变化 (%) | | :--- | :--- | :--- | :--- | | Trade receivables | 328,576 | 275,024 | +19.5% | | Bills receivables | 138,089 | 105,999 | +30.3% | | Less: Provision for impairment losses | (4,733) | (3,249) | +45.7% | | **Total** | **461,932** | **377,774** | **+22.3%** | Aging Analysis of Trade and Bills Receivables (RMB'000) | Aging | 2025年6月30日 (RMB'000) | 2024年12月31日 (RMB'000) | | :--- | :--- | :--- | | 0 to 90 days | 321,193 | 275,588 | | 91 to 180 days | 49,260 | 87,238 | | 181 to 365 days | 78,260 | 14,753 | | Over 365 days | 13,219 | 195 | | **Total** | **461,932** | **377,774** | - The Group discounted certain bills receivables with full recourse to financial institutions; as of June 30, 2025, approximately **RMB 62,791 thousand** of bills receivables continued to be recognized in the financial statements and included in bank borrowings[81](index=81&type=chunk)[84](index=84&type=chunk) [13. Prepayments and Other Receivables](index=21&type=section&id=13.%20Prepayments%20and%20Other%20Receivables) This section details the composition of prepayments and other receivables, which totaled RMB 53.2 million as of June 30, 2025, a 23.6% increase from 2024 year-end, primarily due to increased advances to suppliers and prepayments Prepayments and Other Receivables (RMB'000) | Item | 2025年6月30日 (RMB'000) | 2024年12月31日 (RMB'000) | 变化 (%) | | :--- | :--- | :--- | :--- | | Advances to suppliers | 23,724 | 27,200 | -12.8% | | Recoverable VAT | 8,750 | 8,223 | +6.4% | | Prepayments | 7,311 | 894 | +717.8% | | Other receivables | 13,435 | 6,746 | +99.1% | | **Total** | **53,220** | **43,063** | **+23.6%** | [14. Trade Payables](index=21&type=section&id=14.%20Trade%20Payables) This section provides an aging analysis of trade payables, which totaled RMB 40.8 million as of June 30, 2025, a 7.5% increase from 2024 year-end, with credit terms generally ranging from 30 to 270 days Aging Analysis of Trade Payables (RMB'000) | Aging | 2025年6月30日 (RMB'000) | 2024年12月31日 (RMB'000) | | :--- | :--- | :--- | | 0 to 90 days | 35,600 | 32,497 | | 91 to 180 days | 851 | 1,798 | | 181 to 365 days | 1,666 | 1,533 | | Over 365 days | 2,638 | 2,073 | | **Total** | **40,755** | **37,901** | - The credit period for trade payables ranges from **30 to 270 days**, and their carrying amounts approximate their fair values[93](index=93&type=chunk)[95](index=95&type=chunk) [15. Accruals and Other Payables](index=22&type=section&id=15.%20Accruals%20and%20Other%20Payables) This section details the composition of accruals and other payables, which totaled RMB 240.1 million as of June 30, 2025, remaining largely stable compared to 2024 year-end, with an increase in payables for property, plant, and equipment offset by decreases in accrued expenses and staff welfare payables Accruals and Other Payables (RMB'000) | Item | 2025年6月30日 (RMB'000) | 2024年12月31日 (RMB'000) | 变化 (%) | | :--- | :--- | :--- | :--- | | Payables for property, plant and equipment | 153,969 | 140,874 | +9.3% | | Accrued expenses | 9,365 | 30,473 | -69.2% | | Payables for salaries and welfare | 5,396 | 12,452 | -56.6% | | Dividends payable | 24,218 | – | Not applicable | | **Total** | **240,084** | **238,471** | **+0.7%** | - Other payables primarily include amounts due for maintenance and procurement of spare parts[97](index=97&type=chunk) [16. Share Capital](index=22&type=section&id=16.%20Share%20Capital) This section provides details on the company's authorized and issued share capital, noting a slight increase in issued share capital to RMB 8,069 thousand as of June 30, 2025, due to the exercise of share options Share Capital (RMB'000) | Item | Number of shares ('000 shares) | Amount (RMB'000) | | :--- | :--- | :--- | | Issued and fully paid at January 1, 2024 | 869,418 | 7,986 | | Shares issued upon exercise of share options | 8,000 | 74 | | Issued and fully paid at December 31, 2024 | 877,418 | 8,060 | | Shares issued upon exercise of share options | 1,000 | 9 | | **Issued and fully paid at June 30, 2025** | **878,418** | **8,069** | [17. Commitments](index=23&type=section&id=17.%20Commitments) This section discloses the Group's capital commitments, primarily for the acquisition of property, plant, and equipment, which decreased to RMB 105.7 million as of June 30, 2025, from 2024 year-end Commitments (RMB'000) | Item | 2025年6月30日 (RMB'000) | 2024年12月31日 (RMB'000) | 变化 (%) | | :--- | :--- | :--- | :--- | | Commitments for acquisition of property, plant and equipment | 105,696 | 140,324 | -24.7% | [18. Share-based Payments](index=23&type=section&id=18.%20Share-based%20Payments) This section details the 2016 Share Option Scheme, designed to reward contributors to the Group, noting that Executive Director Mr. Chen Xiaohua exercised 1,000,000 share options during the period, resulting in no outstanding options at period-end - The 2016 Share Option Scheme became effective on May 20, 2016, with a ten-year validity, allowing for a maximum grant of **84,687,800** share options[103](index=103&type=chunk)[105](index=105&type=chunk) - During the period, option holders exercised **1,000,000** share options at an exercise price of **HKD 0.908 per option**[104](index=104&type=chunk)[106](index=106&type=chunk) - As of June 30, 2025, there were no outstanding share options granted under the 2016 Share Option Scheme[107](index=107&type=chunk) [19. Related Party Transactions](index=25&type=section&id=19.%20Related%20Party%20Transactions) This section discloses the Group's related party transactions during the period, including short-term lease expenses paid to related companies, advances from related companies, and interest payments Related Party Transactions (RMB'000) | Type of transaction | 2025年6月30日止六个月 (RMB'000) | 2024年6月30日止六个月 (RMB'000) | | :--- | :--- | :--- | | Short-term lease expenses paid to related companies | 257 | 257 | | Advances from related companies | 12,000 | – | | Repayment to related companies | 12,000 | – | | Interest paid to related companies | 101 | – | - Advances from related companies are unsecured, bear interest at an annual rate of **2%**, and are repayable within one year[114](index=114&type=chunk) [20. Fair Value Measurement](index=25&type=section&id=20.%20Fair%20Value%20Measurement) This section explains the fair value measurement hierarchy (Level 1, 2, 3) and provides an analysis of financial assets (bills receivables) measured at fair value through other comprehensive income, with fair value determined using Level 2 inputs - Fair value measurements are categorized into three levels: Level 1 (quoted prices in active markets), Level 2 (observable inputs), and Level 3 (unobservable inputs)[117](index=117&type=chunk) Fair Value Measurement of Financial Assets (RMB'000) | Item | Level 1 (RMB'000) | Level 2 (RMB'000) | Level 3 (RMB'000) | Total (RMB'000) | | :--- | :--- | :--- | :--- | :--- | | June 30, 2025: Bills receivables | – | 138,089 | – | 138,089 | | December 31, 2024: Bills receivables | – | 105,999 | – | 105,999 | - The fair value of bills receivables is determined by discounting expected future cash flows using current available interest rates for instruments with similar terms, credit risk, and remaining maturities[120](index=120&type=chunk) [Management Discussion and Analysis](index=27&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's insights into the Group's business and financial performance, discussing market conditions, strategic responses, and key financial metrics [Business Review](index=27&type=section&id=BUSINESS%20REVIEW) Despite macroeconomic headwinds, geopolitical tensions, and US tariffs causing domestic manufacturing downturns and deflation, the Group strategically expanded overseas markets, increased capacity, and diversified applications, achieving moderate overseas sales growth that mitigated overall revenue decline - Persistent unfavorable macroeconomic factors, international geopolitical tensions, and US tariff policies severely impacted domestic manufacturing, leading to increased downward pressure on the domestic economy and intense competition due to market supply-demand imbalance[122](index=122&type=chunk)[124](index=124&type=chunk) - The selling prices of almost all the Group's products further declined compared to the same period last year[122](index=122&type=chunk)[124](index=124&type=chunk) - The Group strategically focused its marketing efforts and resources on developing overseas markets, achieving moderate year-on-year growth in overseas sales by actively expanding its international marketing network and successfully opening up new application areas in downstream industries[123](index=123&type=chunk)[125](index=125&type=chunk) - Domestic deflation led to a decrease in average raw material costs, and the Group effectively reduced labor and overall production costs through automated production processes and a circular economy production system, though this could not fully offset the negative impact of declining product selling prices[127](index=127&type=chunk)[129](index=129&type=chunk) [Outlook](index=28&type=section&id=Outlook) Looking ahead, the Group anticipates continued challenges from US-China trade tensions and a slowing domestic economy, planning to respond by expanding business scope, diversifying risks, enhancing operational flexibility, optimizing product portfolios, and seeking new revenue streams, while emphasizing cash flow management and operational efficiency - Persistent US-China trade tensions and US tariff policies pose significant pressure on the domestic economy, with continued economic slowdown and deepening deflation expected to present severe challenges to domestic manufacturing operations[128](index=128&type=chunk)[130](index=130&type=chunk) - The Group is actively expanding its business scope and diversifying its business risks, enhancing operational flexibility, continuously optimizing its product portfolio, and actively seeking new revenue sources[128](index=128&type=chunk)[131](index=131&type=chunk) - Strengthening cash flow management and improving operational efficiency remain key priorities for the Group[128](index=128&type=chunk)[131](index=131&type=chunk) [Financial Review](index=29&type=section&id=FINANCIAL%20REVIEW) This section provides a detailed review of the Group's financial performance, including declining revenue and gross profit, changes in operating expenses, significantly increased finance costs, reduced profit for the period, increased receivables and bank borrowings, and the status of liquidity and financial resources [Revenue and Gross Profit](index=29&type=section&id=Revenue%20and%20gross%20profit) Affected by the domestic economic downturn and falling product prices, the Group's total revenue decreased by 5.6% to RMB 932.3 million, and gross profit fell by 19.0% to RMB 116.7 million, with gross margin contracting by 2.1 percentage points to 12.5% Revenue and Gross Profit (RMB million) | Metric | 2025年6月30日止六个月 (RMB million) | 2024年6月30日止六个月 (RMB million) | 同比变化 (%) | | :--- | :--- | :--- | :--- | | Total revenue | 932.3 | 987.8 | -5.6% | | Gross profit | 116.7 | 144.1 | -19.0% | | Gross profit margin | 12.5% | 14.6% | -2.1个百分点 | - The decrease in revenue was primarily due to a sustained significant decline in overall product selling prices, despite moderate growth in overseas market revenue[134](index=134&type=chunk) - The decline in gross profit was due to cost savings from lower raw material costs and improved operational efficiency being insufficient to fully offset the negative impact of falling product selling prices[135](index=135&type=chunk) [Operating Expenses](index=29&type=section&id=Operating%20expenses) Selling expenses increased by 12.2% to RMB 40.7 million due to higher transportation costs from increased domestic sales of hazardous products, while administrative and other operating expenses significantly decreased by 37.3% to RMB 52.2 million due to lower R&D costs Operating Expenses (RMB million) | Metric | 2025年6月30日止六个月 (RMB million) | 2024年6月30日止六个月 (RMB million) | 同比变化 (%) | | :--- | :--- | :--- | :--- | | Selling expenses | 40.7 | 36.3 | +12.2% | | Selling expenses as % of revenue | 4.4% | 3.7% | +0.7个百分点 | | Administrative and other operating expenses | 52.2 | 83.3 | -37.3% | | Administrative and other operating expenses as % of revenue | 5.6% | 8.4% | -2.8个百分点 | - The increase in selling expenses was primarily attributable to increased domestic sales of hazardous products, leading to higher transportation costs to comply with national safety regulations[136](index=136&type=chunk) - The decrease in administrative and other operating expenses was mainly attributable to lower research and development expenses[137](index=137&type=chunk) [Finance Costs](index=30&type=section&id=Finance%20costs) Finance costs surged by 902.4% to RMB 6.4 million, primarily due to the Group's strategic increase in the use of bank borrowings, asset-backed financing, supplier financing arrangements, and advances from related companies to optimize short-term liquidity management Finance Costs (RMB million) | Metric | 2025年6月30日止六个月 (RMB million) | 2024年6月30日止六个月 (RMB million) | 同比变化 (%) | | :--- | :--- | :--- | :--- | | Finance costs | 6.4 | 0.6 | +902.4% | - The increase in finance costs was due to the strategic increase in the use of bank borrowings, asset-backed financing, supplier financing arrangements, and advances from related companies to optimize short-term liquidity management[139](index=139&type=chunk)[142](index=142&type=chunk) [Profit for the Period](index=30&type=section&id=Profit%20for%20the%20period) Influenced by the aforementioned factors, profit for the period attributable to owners of the Company decreased by 17.0% to RMB 35.2 million compared to the prior period Profit for the Period Attributable to Owners of the Company (RMB million) | Metric | 2025年6月30日止六个月 (RMB million) | 2024年6月30日止六个月 (RMB million) | 同比变化 (%) | | :--- | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company | 35.2 | 42.4 | -17.0% | [Trade and Bills Receivables](index=30&type=section&id=Trade%20and%20bills%20receivable) As of June 30, 2025, trade receivables (net of impairment provisions) increased by 19.1% to RMB 323.8 million, and bills receivables rose by 30.3% to RMB 138.1 million, with the Directors deeming no additional bad debt provision necessary Trade and Bills Receivables (RMB million) | Metric | 2025年6月30日 (RMB million) | 2024年12月31日 (RMB million) | 变化 (%) | | :--- | :--- | :--- | :--- | | Trade receivables (net of impairment provisions) | 323.8 | 271.8 | +19.1% | | Bills receivables | 138.1 | 106.0 | +30.3% | - Approximately **60.7%** of trade receivables were generated in the second quarter of the current year and were mostly not yet due, while **28.3%** of trade receivables were aged over **180 days**[144](index=144&type=chunk) - All bills receivables are bank acceptance bills, guaranteed by reputable licensed banks in China, carrying low default risk, thus requiring no bad debt provision[145](index=145&type=chunk) [Short-term Bank Borrowings](index=31&type=section&id=Short-term%20bank%20borrowings) As of June 30, 2025, total bank borrowings increased to RMB 354.2 million, primarily utilized for the Group's general working capital requirements Short-term Bank Borrowings (RMB million) | Metric | 2025年6月30日 (RMB million) | 2024年12月31日 (RMB million) | 变化 (%) | | :--- | :--- | :--- | :--- | | Total bank borrowings | 354.2 | 220.1 | +60.9% | - All bank borrowings were obtained in China, bear interest at fixed rates, are denominated in RMB, and are primarily used to finance the Group's general working capital[146](index=146&type=chunk)[149](index=149&type=chunk) [Liquidity and Financial Resources](index=31&type=section&id=Liquidity%20and%20financial%20resources) The Group maintained a sound financial position with a net cash balance of RMB 490.4 million as of June 30, 2025; despite a significant decrease in net cash inflow from operating activities, funding needs were met through new bank borrowings and fixed deposit withdrawals Liquidity and Financial Resources (RMB million) | Metric | 2025年6月30日止六个月 (RMB million) | 2024年6月30日止六个月 (RMB million) | 同比变化 (%) | | :--- | :--- | :--- | :--- | | Net cash inflow from operating activities | 50.3 | 151.8 | -66.8% | | New bank borrowings | 118.6 | 26.0 | +356.2% | | Repayment of bank borrowings | 91.0 | – | Not applicable | | Net cash balance (period-end) | 490.4 | 626.9 | -21.8% | | Net current assets (period-end) | 867.3 | 900.7 | -3.7% | - The Group's gearing ratio is not applicable as cash and cash equivalents exceeded total outstanding borrowings[151](index=151&type=chunk) - The Group is capable of meeting its capital commitments and working capital requirements for the foreseeable future and will continue to closely manage its working capital[153](index=153&type=chunk) [Pledge of Assets](index=32&type=section&id=Pledge%20of%20assets) As of June 30, 2025, the Group pledged bank deposits, certain buildings, and right-of-use assets as collateral for factory water supply guarantees, foreign exchange forward contract performance guarantees, and bank borrowings - Bank deposits of **RMB 300 thousand** were pledged as collateral for factory water supply guarantees, and **RMB 1,000 thousand** were pledged as collateral for foreign exchange forward contract performance guarantees[155](index=155&type=chunk)[160](index=160&type=chunk) - Certain buildings (**RMB 50.4 million**) and right-of-use assets (**RMB 76.6 million**) were pledged as collateral for the Group's bank borrowings[155](index=155&type=chunk)[160](index=160&type=chunk) [Contingent Liabilities](index=32&type=section&id=Contingent%20liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[156](index=156&type=chunk)[161](index=161&type=chunk) [Exposure to Fluctuations in Exchange Rates](index=32&type=section&id=Exposure%20to%20fluctuations%20in%20exchange%20rates) The Group primarily faces RMB exchange rate fluctuation risk, with most income and expenses denominated in RMB and export sales in USD; no significant difficulties were encountered during the period, and cost-effective hedging methods will be considered in the future - The Group's most significant foreign exchange fluctuation risk arises from changes in the RMB exchange rate[157](index=157&type=chunk)[163](index=163&type=chunk) - Most of the Group's income and expenses are denominated in RMB, while export sales are primarily denominated in USD[157](index=157&type=chunk)[163](index=163&type=chunk) - No significant difficulties or impacts were encountered due to exchange rate fluctuations during the period, and cost-effective hedging methods will be considered in the future[157](index=157&type=chunk)[163](index=163&type=chunk) [Other Information](index=32&type=section&id=Other%20Information) This section covers various other corporate information, including dividend policy, human resources, directors' and substantial shareholders' securities interests, share option scheme details, compliance with securities transaction codes, share repurchase activities, and corporate governance practices [Dividends](index=33&type=section&id=DIVIDEND) The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025 (2024: HKD 0.02 per share)[164](index=164&type=chunk)[167](index=167&type=chunk) [Human Resources](index=33&type=section&id=HUMAN%20RESOURCES) As of June 30, 2025, the Group had 1,213 full-time employees, a decrease from 1,358 at the end of 2024, with policies in place for compensation, benefits, diverse training, and a share option scheme for employee incentives Number of Full-time Employees | Metric | 2025年6月30日 | 2024年12月31日 | 变化 (%) | | :--- | :--- | :--- | :--- | | Number of full-time employees | 1,213 | 1,358 | -10.7% | - The Group has established human resources policies and systems, including compensation and rewards, employee benefits (medical insurance and provident fund), and diverse training and personal development programs[169](index=169&type=chunk)[170](index=170&type=chunk) - The Group has adopted a share option scheme to reward eligible participants who have contributed to the Group's business achievements, but no share options were granted during the period[171](index=171&type=chunk) [Directors' and Chief Executive's Interests in Securities](index=34&type=section&id=DIRECTORS%27%20AND%20CHIEF%20EXECUTIVE%27S%20INTERESTS%20IN%20SECURITIES) As of June 30, 2025, the interests of the Company's directors, chief executive, and their associates in the Company's shares were disclosed, with Mr. Liu Yang, Mr. Wang Zijiang, and Mr. Chen Xiaohua holding significant share interests Directors' and Chief Executive's Interests in Securities | Name of Director / Chief Executive | Number of shares held / Nature of interest | Capacity | Approximate % of total issued shares | | :--- | :--- | :--- | :--- | | Mr. Liu Yang | 232,560,000 (Controlled corporation) | Interest in controlled corporation | 26.47% | | | 5,000,000 | Beneficial owner | 0.57% | | Mr. Wang Zijiang | 159,120,000 | Beneficial owner | 18.11% | | | 140,000 | Interest of spouse | 0.02% | | Mr. Chen Xiaohua | 4,532,000 | Beneficial owner | 0.52% | - Mr. Liu Yang holds **232,560,000 shares** through Zhifeng Group Limited, which he ultimately beneficially owns[176](index=176&type=chunk) - Save as disclosed, as of June 30, 2025, none of the Directors, chief executive, or their associates had any interests or short positions in the shares, underlying shares, or debentures of the Company or any of its associated corporations[177](index=177&type=chunk)[178](index=178&type=chunk) [Substantial Shareholders](index=35&type=section&id=SUBSTANTIAL%20SHAREHOLDERS) As of June 30, 2025, besides the directors, substantial shareholders holding 5% or more of the issued shares included Zhifeng Group Limited, Ms. Sun Jianhua, and Ms. Zheng Hong Substantial Shareholders' Interests | Name of Shareholder | Number of shares held / Nature and total amount of interest | Capacity | Approximate % of total issued shares | | :--- | :--- | :--- | :--- | | Zhifeng Group Limited | 232,560,000 | Beneficial owner | 26.47% | | Ms. Sun Jianhua | 70,380,000 | Beneficial owner | 8.01% | | Ms. Zheng Hong | 70,380,000 | Beneficial owner | 8.01% | - The entire issued share capital of Zhifeng Group Limited is ultimately beneficially owned by Mr. Liu Yang, an executive director[183](index=183&type=chunk)[184](index=184&type=chunk) - Mr. Gao Feng is deemed to have an interest in the same number of shares held by Ms. Zheng Hong under the Securities and Futures Ordinance[183](index=183&type=chunk)[184](index=184&type=chunk) [Share Option Scheme](index=36&type=section&id=SHARE%20OPTION%20SCHEME) This section provides details on the changes in the 2016 Share Option Scheme, noting that Executive Director Mr. Chen Xiaohua exercised 1,000,000 share options during the period, resulting in no outstanding options at period-end Share Option Scheme Movements | Name of grantee | Date of grant | Vesting period | Exercise period | Exercise price | Outstanding at beginning of period | Exercised during period | Outstanding at end of period | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Mr. Chen Xiaohua | 2021年8月30日 | 2021年8月30日至2023年8月29日 | 2023年8月30日至2028年8月29日 | HKD 0.908 | 1,000,000 | 1,000,000 | – | - No share options were granted under the 2016 Share Option Scheme during the period[189](index=189&type=chunk)[192](index=192&type=chunk) [Model Code for Securities Transactions by Directors of Listed Companies](index=36&type=section&id=MODEL%20CODE%20FOR%20SECURITIES%20TRANSACTIONS%20BY%20DIRECTORS%20OF%20LISTED%20COMPANIES) The Company has adopted a code of conduct for directors' securities transactions no less exacting than the Model Code in Appendix C3 of the Listing Rules, with all directors confirming compliance for the six months ended June 30, 2025 - The Company has adopted a code of conduct for directors' securities transactions no less exacting than the Model Code set out in Appendix C3 of the Listing Rules[190](index=190&type=chunk)[193](index=193&type=chunk) - Each Director has confirmed compliance with the required standards of the Model Code and the Company's code of conduct for the six months ended June 30, 2025[190](index=190&type=chunk)[193](index=193&type=chunk) - Senior management are also required to comply with the provisions of the Model Code and the Company's code of conduct[190](index=190&type=chunk)[194](index=194&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Shares](index=36&type=section&id=PURCHASE%2C%20SALE%20OR%20REDEMPTION%20OF%20THE%20COMPANY%27S%20LISTED%20SHARES) As of June 30, 2025, the Company held no treasury shares, and neither the Company nor its subsidiaries purchased, sold, or redeemed any listed shares during the period - As of June 30, 2025, the Company held no treasury shares[195](index=195&type=chunk) - 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 shares[195](index=195&type=chunk) [Corporate Governance Practices](index=37&type=section&id=CORPORATE%20GOVERNANCE%20PRACTICES) The Board confirms that the Company has complied with the Corporate Governance Code set out in Part 2 of Appendix C1 to the Listing Rules for the six months ended June 30, 2025 - The Board confirms that the Company has complied with the Corporate Governance Code set out in Part 2 of Appendix C1 to the Listing Rules for the six months ended June 30, 2025[196](index=196&type=chunk)[200](index=200&type=chunk) [Nomination Committee](index=37&type=section&id=NOMINATION%20COMMITTEE) The Nomination Committee, chaired by Executive Director Mr. Liu Yang and including two independent non-executive directors, did not hold any meetings during the period - The Nomination Committee is chaired by Executive Director Mr. Liu Yang, with members including independent non-executive directors Mr. Liang Jinyun and Mr. Liu Chenguang[197](index=197&type=chunk)[201](index=201&type=chunk) - The Nomination Committee did not hold any meetings during the review period[197](index=197&type=chunk)[201](index=201&type=chunk) [Remuneration Committee](index=37&type=section&id=REMUNERATION%20COMMITTEE) The Remuneration Committee, chaired by Independent Non-executive Director Mr. Liu Chenguang and comprising three other members, did not hold any meetings during the period - The Remuneration Committee is chaired by Independent Non-executive Director Mr. Liu Chenguang, with members including independent non-executive directors Mr. Liang Jinyun, Ms. Shan Honghong, and Executive Director Mr. Liu Yang[198](index=198&type=chunk)[202](index=202&type=chunk) - The Remuneration Committee did not hold any meetings during the review period[198](index=198&type=chunk)[202](index=202&type=chunk) [Audit Committee](index=37&type=section&id=AUDIT%20COMMITTEE) The Audit Committee, composed of three independent non-executive directors, reviewed the company's accounting principles, internal controls, financial reporting, and compliance matters during the period, communicating with independent auditors and raising no objections to accounting treatments - The Audit Committee comprises three independent non-executive directors, including Chairman Mr. Liang Jinyun, Mr. Liu Chenguang, and Ms. Shan Honghong[199](index=199&type=chunk)[203](index=203&type=chunk) - During the period, the Audit Committee reviewed the Company's accounting principles and practices, Listing Rules, internal controls, statutory requirements, and compliance matters related to financial reporting[199](index=199&type=chunk)[203](index=203&type=chunk) - The Audit Committee has reviewed the unaudited condensed financial information and raised no objections to the accounting treatments adopted by the Company during the review period[199](index=199&type=chunk)[203](index=203&type=chunk)

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8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: 天德化工控股有限公司 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) | 00609 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 100,000,000,000 | HKD | | 0.01 | HKD | | 1,000,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 100,000,000,000 | HKD | | 0.01 | HKD | | 1,000,000,000 | ...

Summary of Key Points Core Viewpoint - Tian De Chemical (00609.HK) reported a decline in revenue and profit for the six months ending June 30, 2025, attributed to a sluggish domestic economy and significant price drops in products [1]. Financial Performance - Revenue for the period was approximately RMB 932 million, a decrease of 5.6% compared to the same period last year [1]. - Profit attributable to shareholders fell to approximately RMB 35.2 million, down from RMB 42.4 million for the same period last year [1]. - Basic earnings per share were approximately RMB 0.040, compared to RMB 0.049 for the same period last year [1]. Dividend Policy - The board of directors does not recommend the payment of any interim dividend for the six months ending June 30, 2025, compared to an interim dividend of HKD 0.02 for the same period last year [1]. Market Conditions - The overall selling prices of the company's products continued to decline significantly during the review period due to ongoing challenges in the domestic economic environment [1]. - Despite a challenging business environment, the overseas market recorded moderate growth in revenue [1].

Group 1 - The company Tian De Chemical (00609) reported a revenue of 932 million RMB for the six months ending June 30, 2025, representing a year-on-year decrease of 5.62% [1] - The profit attributable to shareholders was 35.154 million RMB, which is a year-on-year decline of 17.01% [1] - The basic earnings per share were 0.04 RMB [1]

Group 1 - The company Tian De Chemical (00609) reported a revenue of 932 million RMB for the six months ending June 30, 2025, representing a year-on-year decrease of 5.62% [1] - The profit attributable to shareholders was 35.154 million RMB, which is a year-on-year decrease of 17.01% [1] - The basic earnings per share were 0.04 RMB [1]

Performance Highlights [Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) The company experienced declines in turnover, gross profit, profit attributable to owners, and basic EPS for H1 2025, with no interim dividend recommended H1 2025 Performance Summary | Metric | H1 2025 (RMB) | H1 2024 (RMB) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Turnover | 932,300,000 | 987,765,000 | Decreased 5.6% | | Gross Profit | 116,700,000 | 144,084,000 | Decreased 19.0% | | Gross Profit Margin | 12.5% | 14.6% | Decreased 2.1 percentage points | | Profit attributable to owners of the Company for the period | 35,200,000 | 42,400,000 | Decreased 16.98% | | Basic earnings per share | 0.040 | 0.049 | Decreased 18.37% | | Interim Dividend | Not recommended for distribution | HKD 0.02 | Not distributed | Condensed Consolidated Financial Statements [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For H1 2025, group turnover decreased by 5.6% to RMB 932,301 thousand, gross profit fell by 19.0% to RMB 116,676 thousand, and profit for the period was RMB 19,231 thousand Condensed Consolidated Statement of Profit or Loss (For the six months ended June 30) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Turnover | 932,301 | 987,765 | | Cost of sales | (815,625) | (843,681) | | Gross Profit | 116,676 | 144,084 | | Other income and gains | 18,100 | 18,166 | | Selling expenses | (40,747) | (36,327) | | Administrative and other operating expenses | (52,197) | (83,289) | | Finance costs | (6,395) | (638) | | Profit before income tax | 35,437 | 41,996 | | Income tax expense | (16,206) | (8,146) | | Profit for the period | 19,231 | 33,850 | | Profit attributable to owners of the Company for the period | 35,154 | 42,357 | | Profit/(Loss) attributable to non-controlling interests for the period | (15,923) | (8,507) | | Basic earnings per share | RMB 0.040 | RMB 0.049 | | Diluted earnings per share | RMB 0.040 | RMB 0.049 | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) Total comprehensive income for H1 2025 significantly decreased to RMB 13,056 thousand, primarily due to a shift from gain to loss in currency translation differences Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Profit for the period | 19,231 | 33,850 | | Other comprehensive income - Currency translation differences | (6,175) | 737 | | Total comprehensive income for the period | 13,056 | 34,587 | | Total comprehensive income attributable to owners of the Company | 28,803 | 43,242 | | Total comprehensive income attributable to non-controlling interests | (15,747) | (8,655) | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets less current liabilities slightly decreased, with increases in trade and bills receivables and cash balances, and a significant reduction in time deposits Condensed Consolidated Statement of Financial Position (As of June 30) | Metric | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Non-current assets | 1,662,114 | 1,659,245 | | Current assets | 1,520,861 | 1,425,188 | | Current liabilities | 653,606 | 524,507 | | Net current assets | 867,255 | 900,681 | | Total assets less current liabilities | 2,529,369 | 2,559,926 | | Non-current liabilities | 24,778 | 45,002 | | Net assets | 2,504,591 | 2,514,924 | | Equity attributable to owners of the Company | 2,425,517 | 2,420,103 | | Non-controlling interests | 79,074 | 94,821 | | Total equity | 2,504,591 | 2,514,924 | - Within current assets, **trade and bills receivables increased from RMB 377,774 thousand to RMB 461,932 thousand**, and **bank and cash balances increased from RMB 358,214 thousand to RMB 633,913 thousand**, while **time deposits decreased from RMB 493,340 thousand to RMB 215,006 thousand**[5](index=5&type=chunk) - Bank borrowings within current liabilities significantly **increased from RMB 220,134 thousand to RMB 354,191 thousand**[5](index=5&type=chunk) Notes to the Financial Statements [General Information](index=5&type=section&id=1.%20General%20Information) TianDe Chemical Holdings Limited is an exempted company incorporated in the Cayman Islands, primarily engaged in investment holding and the R&D, manufacturing, and sale of fine chemical products - The Company is an exempted company incorporated in the Cayman Islands, with shares listed on the Hong Kong Stock Exchange[6](index=6&type=chunk) - The Company's principal business is investment holding, while the Group's principal activities are the research, development, manufacturing, and sale of fine chemical products[7](index=7&type=chunk) [Basis of Preparation and Presentation](index=5&type=section&id=2.%20Basis%20of%20Preparation%20and%20Presentation) The unaudited condensed consolidated financial statements are prepared in accordance with HKAS 34 and Appendix D2 of the Listing Rules, presented in RMB, and reviewed by BDO Limited - The financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and Appendix D2 of the Listing Rules[8](index=8&type=chunk) - The Company's functional currency is HKD, but financial information is presented in RMB due to its principal operations being in China[8](index=8&type=chunk) - The financial information is unaudited but has been reviewed by BDO Limited[8](index=8&type=chunk) [Significant Accounting Policies](index=5&type=section&id=3.%20Significant%20Accounting%20Policies) Amendments to HKAS 21 and HKFRS 1, concerning non-exchangeable currencies and exchange rate estimation, were first applied this interim period with no significant impact, while HKFRS 18 is expected to significantly affect financial statement presentation - The first-time application of amendments to Hong Kong Accounting Standard 21 and Hong Kong Financial Reporting Standard 1, concerning the assessment of non-exchangeable currencies, had **no impact on the Group's condensed consolidated interim financial statements**[9](index=9&type=chunk)[10](index=10&type=chunk) - Hong Kong Financial Reporting Standard 18 will replace Hong Kong Accounting Standard 1, and is expected to have a **significant impact on the classification of profit or loss, subtotals, aggregation/disaggregation of information, and disclosure of management performance measures**[11](index=11&type=chunk) [Turnover and Segment Information](index=7&type=section&id=4.%20Turnover%20and%20Segment%20Information) The Group identifies R&D, manufacturing, and sale of fine chemical products as a single operating segment, with total turnover of RMB 932,301 thousand for H1 2025, showing decreased domestic sales but increased sales in UAE, USA, and Brazil - The Group identifies the research, development, manufacturing, and sale of fine chemical products as a **single operating segment**[12](index=12&type=chunk) Classified Turnover from External Customers (By Geographical Region) | Region | 2025 (RMB '000) | 2024 (RMB '000) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | China (Domestic) | 643,615 | 708,475 | -9.29% | | India | 103,938 | 124,289 | -16.40% | | United Arab Emirates | 41,891 | 24,533 | +70.76% | | United States | 29,300 | 16,375 | +78.93% | | Brazil | 21,459 | 6,112 | +251.10% | | Others | 92,098 | 107,981 | -14.71% | | **Total** | **932,301** | **987,765** | **-5.62%** | - For the period ended June 30, 2025, **no single customer accounted for 10% or more of the Group's revenue**[14](index=14&type=chunk) [Finance Costs](index=7&type=section&id=5.%20Finance%20Costs) Finance costs for H1 2025 significantly increased to RMB 6,395 thousand from RMB 638 thousand in the prior period, driven by interest on bank borrowings, asset-backed financing, and supplier financing arrangements Finance Costs Details (For the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Interest on bank borrowings repayable within one year and containing a repayment on demand clause | 2,701 | 638 | | Interest on asset-backed financing | 391 | - | | Interest on supplier financing arrangements | 3,202 | - | | Interest on advances from related parties | 101 | - | | **Total** | **6,395** | **638** | [Profit Before Income Tax](index=8&type=section&id=6.%20Profit%20Before%20Income%20Tax) Profit before income tax for H1 2025 was RMB 35,437 thousand, with decreased total employee costs but increased inventory costs and depreciation of property, plant, and equipment, alongside a significant reduction in research costs Profit Before Income Tax Deducted/(Credited) Items (For the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Total employee costs | 83,686 | 97,910 | | Depreciation of right-of-use assets | 1,287 | 1,287 | | Amortisation of intangible assets | 902 | 902 | | Cost of inventories recognised as expense | 815,625 | 843,681 | | Depreciation of property, plant and equipment | 90,487 | 83,700 | | (Gain)/Loss on disposal of property, plant and equipment, net | (1,018) | 43 | | Provision for impairment loss on trade receivables | 1,484 | 110 | | Loss on write-off of property, plant and equipment | 2,353 | 8 | | Research costs | 22,669 | 54,426 | - **Research costs significantly decreased from RMB 54,426 thousand in H1 2024 to RMB 22,669 thousand in H1 2025**[16](index=16&type=chunk) - **Depreciation of property, plant and equipment increased from RMB 83,700 thousand in H1 2024 to RMB 90,487 thousand in H1 2025**[16](index=16&type=chunk) [Income Tax Expense](index=9&type=section&id=7.%20Income%20Tax%20Expense) Income tax expense for H1 2025 significantly increased to RMB 16,206 thousand from RMB 8,146 thousand in the prior period, primarily due to a substantial rise in withholding tax paid on China dividends Income Tax Expense Details (For the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Current tax—China corporate income tax - Tax for the period | 11,319 | 9,167 | | Current tax—China corporate income tax - Over-provision in prior years | (641) | (1,172) | | Current tax—China corporate income tax - Withholding tax paid on China dividends | 25,706 | 970 | | Deferred tax - Credit for the period | (20,178) | (819) | | **Total Income Tax Expense** | **16,206** | **8,146** | - **Withholding tax paid on China dividends significantly increased from RMB 970 thousand in H1 2024 to RMB 25,706 thousand in H1 2025**[17](index=17&type=chunk) - China subsidiaries are subject to corporate income tax at a rate of **25%**, with China withholding tax rates of **5% or 10%**[18](index=18&type=chunk) [Dividends](index=9&type=section&id=8.%20Dividends) Shareholders approved a final dividend of HKD 0.03 per share for 2024, but the Board does not recommend any interim dividend for H1 2025, compared to HKD 0.02 per share in the prior period - The 2024 final dividend of **HKD 0.03 per share** (2023: HKD 0.10) was approved at the AGM on June 6, 2025, totaling **RMB 24,218,000**[19](index=19&type=chunk) - The Board does not recommend any interim dividend for the six months ended June 30, 2025 (H1 2024: HKD 0.02 per share)[19](index=19&type=chunk) [Earnings Per Share](index=10&type=section&id=9.%20Earnings%20Per%20Share) Basic and diluted earnings per share attributable to owners of the Company for H1 2025 both decreased to RMB 0.040, down from RMB 0.049 in the prior period Earnings Per Share Calculation Data (For the six months ended June 30) | Metric | 2025 (RMB '000/thousand shares) | 2024 (RMB '000/thousand shares) | | :--- | :--- | :--- | | Profit attributable to owners of the Company for the period | 35,154 | 42,357 | | Weighted average number of ordinary shares for basic EPS | 877,462 | 869,418 | | Dilutive effect of potential ordinary shares - Share options | 44 | 4,188 | | Weighted average number of ordinary shares for diluted EPS | 877,506 | 873,606 | | **Basic earnings per share** | **RMB 0.040** | **RMB 0.049** | | **Diluted earnings per share** | **RMB 0.040** | **RMB 0.049** | [Trade and Bills Receivables](index=10&type=section&id=10.%20Trade%20and%20Bills%20Receivables) As of June 30, 2025, total trade and bills receivables increased to RMB 461,932 thousand from RMB 377,774 thousand at December 31, 2024, with a notable increase in receivables over 365 days - The Group generally grants credit terms of **one to six months** to its trade customers[21](index=21&type=chunk) Ageing Analysis of Trade and Bills Receivables (By invoice date) | Ageing | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | 0 to 90 days | 321,193 | 275,588 | | 91 to 180 days | 49,260 | 87,238 | | 181 to 365 days | 78,260 | 14,753 | | Over 365 days | 13,219 | 195 | | **Total** | **461,932** | **377,774** | [Trade Payables](index=11&type=section&id=11.%20Trade%20Payables) As of June 30, 2025, total trade payables slightly increased to RMB 40,755 thousand from RMB 37,901 thousand at December 31, 2024, with credit terms from suppliers ranging from 30 to 270 days - The Group is granted credit terms by its suppliers ranging from **30 to 270 days**[22](index=22&type=chunk) Ageing Analysis of Trade Payables (By invoice date) | Ageing | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | 0 to 90 days | 35,600 | 32,497 | | 91 to 180 days | 851 | 1,798 | | 181 to 365 days | 1,666 | 1,533 | | Over 365 days | 2,638 | 2,073 | | **Total** | **40,755** | **37,901** | Management Discussion and Analysis [Business Review](index=11&type=section&id=Business%20Review) Domestic manufacturing faces downward pressure from macroeconomic headwinds, geopolitical tensions, and US tariffs, but the Group's overseas market expansion and capacity increase for potential products partially offset negative impacts, leading to a slight decline in total turnover - Persistent adverse macroeconomic factors, international geopolitical tensions, and US tariff policies have severely impacted domestic manufacturing, leading to **increased downward pressure on the overall domestic economy and declining product selling prices**[23](index=23&type=chunk) - The Group strategically allocated marketing resources to developing overseas markets, achieving **moderate year-on-year growth in overseas sales** through an expanded international marketing network[23](index=23&type=chunk) - Expanding production capacity for products with market potential successfully opened new application areas in downstream industries and broadened product applications in international markets, helping to **mitigate the adverse effects of declining product selling prices**[23](index=23&type=chunk) - Domestic deflation led to a decrease in average raw material costs, and the Group improved efficiency through automated production and a circular economy system, but these efforts could not fully offset the negative impact of declining product selling prices, resulting in **reduced gross profit and gross profit margin**[24](index=24&type=chunk) [Outlook](index=12&type=section&id=Outlook) Facing US-China trade tensions, domestic economic slowdown, and deflation, the Group is actively expanding its business scope, diversifying risks, enhancing operational flexibility, optimizing product portfolio, and seeking new revenue streams, while strengthening cash flow management and maintaining confidence in long-term prospects - Ongoing US-China trade tensions and US tariff policies pose significant pressure on the domestic economy, with a **continued slowdown and deepening deflation expected to bring severe challenges to domestic manufacturing**[25](index=25&type=chunk) - The Group is actively expanding its business scope and diversifying its business risks, enhancing operational flexibility, continuously optimizing its product portfolio, and actively seeking new revenue sources[25](index=25&type=chunk) - Strengthening cash flow management and improving operational efficiency remain key priorities for the Group, and the Board remains **confident in the Group's long-term prospects**[25](index=25&type=chunk) [Financial Review](index=12&type=section&id=Financial%20Review) Turnover decreased by 5.6% to RMB 932.3 million due to domestic economic downturn and falling product prices; gross profit fell 19.0% to RMB 116.7 million, with margin shrinking to 12.5%; selling expenses rose, administrative expenses decreased, and finance costs significantly increased [Turnover and Gross Profit](index=12&type=section&id=Turnover%20and%20Gross%20Profit) Total turnover decreased by 5.6% to RMB 932.3 million due to domestic economic downturn and falling product prices; gross profit fell 19.0% to RMB 116.7 million, with margin shrinking to 12.5%, despite lower raw material costs and improved efficiency - Total turnover **decreased by 5.6% to approximately RMB 932.3 million** (H1 2024: RMB 987.8 million), primarily due to a significant decline in overall product selling prices caused by the prolonged domestic economic downturn[26](index=26&type=chunk) - Gross profit **decreased by 19.0% to approximately RMB 116.7 million** (H1 2024: RMB 144.1 million), and gross profit margin **contracted by 2.1 percentage points to 12.5%** (H1 2024: 14.6%), mainly because the decline in product selling prices was not fully offset by lower raw material costs and improved operational efficiency[27](index=27&type=chunk) [Operating Expenses](index=13&type=section&id=Operating%20Expenses) Selling expenses increased by 12.1% to RMB 40.7 million due to higher transportation costs from increased domestic sales of hazardous products, while administrative and other operating expenses significantly decreased by 37.3% to RMB 52.2 million, mainly due to lower research and development expenses - Selling expenses **increased by approximately RMB 4.4 million to approximately RMB 40.7 million**, primarily due to higher transportation costs resulting from increased domestic sales of hazardous products[28](index=28&type=chunk) - Administrative and other operating expenses **decreased by approximately RMB 31.1 million or 37.3% to approximately RMB 52.2 million**, mainly due to a reduction in research and development expenses[28](index=28&type=chunk) [Finance Costs](index=13&type=section&id=Finance%20Costs) Finance costs significantly increased by approximately RMB 5.8 million to RMB 6.4 million, primarily due to a strategic increase in bank borrowings, asset-backed financing, supplier financing arrangements, and advances from related parties to optimize short-term liquidity management - Finance costs were approximately **RMB 6.4 million**, an **increase of approximately RMB 5.8 million** compared to the same period last year, primarily from interest on bank borrowings, asset-backed financing, supplier financing arrangements, and advances from related parties[29](index=29&type=chunk) - The Group strategically increased its use of bank borrowings and other methods to **optimize short-term liquidity management**[29](index=29&type=chunk) [Profit for the Period](index=13&type=section&id=Profit%20for%20the%20Period) Profit attributable to owners of the Company for the period under review was approximately RMB 35.2 million, a decrease from RMB 42.4 million in the prior period - Profit attributable to owners of the Company for the period under review was approximately **RMB 35.2 million** (H1 2024: RMB 42.4 million)[30](index=30&type=chunk) [Trade and Bills Receivables](index=13&type=section&id=Trade%20and%20Bills%20Receivables) As of June 30, 2025, trade receivables (net of impairment allowance) increased by 19.1% to RMB 323.8 million, with approximately 28.3% aged over 180 days; bills receivables rose by 30.3% to RMB 138.1 million, all being bank acceptance bills with low default risk - Trade receivables (net of allowance for impairment losses) **increased by 19.1% to approximately RMB 323.8 million** (December 31, 2024: RMB 271.8 million)[31](index=31&type=chunk) - Approximately **28.3% of trade receivables were aged over 180 days**, but the Directors believe no additional bad debt provision is required[31](index=31&type=chunk) - Bills receivables **increased by 30.3% to approximately RMB 138.1 million** (December 31, 2024: RMB 106.0 million), all of which are bank acceptance bills with low default risk[32](index=32&type=chunk) [Short-term Bank Borrowings](index=14&type=section&id=Short-term%20Bank%20Borrowings) As of June 30, 2025, total bank borrowings increased to RMB 354.2 million, primarily utilized to fund the Group's general working capital - Total bank borrowings outstanding **increased to approximately RMB 354.2 million** (December 31, 2024: RMB 220.1 million)[33](index=33&type=chunk) - The bank borrowings were primarily raised to fund the Group's **general working capital** during the period under review[33](index=33&type=chunk) [Liquidity and Financial Resources](index=14&type=section&id=Liquidity%20and%20Financial%20Resources) Net cash inflow from operating activities for H1 2025 significantly decreased to RMB 50.3 million, and the Group's net cash balance declined to RMB 490.4 million, yet it maintains a sound financial position with cash and cash equivalents exceeding total outstanding borrowings - Net cash inflow from operating activities was approximately **RMB 50.3 million** (H1 2024: RMB 151.8 million), representing a **significant decrease**[34](index=34&type=chunk) - New bank borrowings amounted to approximately **RMB 118.6 million**, and advances from related parties were **RMB 12.0 million**[34](index=34&type=chunk) - Net cash balance was approximately **RMB 490.4 million** (December 31, 2024: RMB 626.9 million), showing a **decrease**[35](index=35&type=chunk) - The Group maintained a **sound financial position** during the period under review, with cash and cash equivalents exceeding total outstanding borrowings, and the debt-to-equity ratio is not applicable[35](index=35&type=chunk) [Pledge of Assets](index=15&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group pledged RMB 1.3 million in bank deposits as security and certain buildings (RMB 50.4 million) and right-of-use assets (RMB 76.6 million) as collateral for bank borrowings - Bank deposits of approximately **RMB 0.3 million were pledged as security for factory water supply**, and **RMB 1.0 million was pledged as security for foreign exchange forward contracts**[38](index=38&type=chunk) - Certain buildings (approximately **RMB 50.4 million**) and right-of-use assets (approximately **RMB 76.6 million**) were pledged as collateral for bank borrowings[38](index=38&type=chunk) [Contingent Liabilities](index=15&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had **no significant contingent liabilities**[39](index=39&type=chunk) [Foreign Exchange Fluctuation Risk](index=15&type=section&id=Foreign%20Exchange%20Fluctuation%20Risk) The Group's primary operations are in China, with assets, liabilities, turnover, and transactions mainly denominated in RMB, USD, and HKD; the main foreign exchange risk stems from RMB fluctuations, which caused no significant issues during the period, and cost-effective hedging methods will be considered in the future - The Group's assets, liabilities, turnover, and transactions are primarily denominated in **RMB, USD, and HKD**[40](index=40&type=chunk) - The most significant foreign exchange fluctuation risk arises from **RMB exchange rate changes**, but no major difficulties or impacts were encountered during the period under review[40](index=40&type=chunk) - The Group will consider adopting **cost-effective hedging methods** for foreign currency transactions when appropriate in the future[40](index=40&type=chunk) [Dividends](index=15&type=section&id=Dividends) The Board does not recommend any interim dividend for the six months ended June 30, 2025 - The Board does not recommend any interim dividend for the six months ended June 30, 2025 (H1 2024: HKD 0.02 per share)[41](index=41&type=chunk) Other Information [Human Resources](index=15&type=section&id=Human%20Resources) As of June 30, 2025, the Group had 1,213 full-time employees, a decrease from 1,358 at year-end 2024, with established remuneration, bonus, and diverse training and development programs to enhance employee skills and industry knowledge - As of June 30, 2025, the Group had **1,213 full-time employees** (December 31, 2024: 1,358 full-time employees)[42](index=42&type=chunk) - The Group has established human resources policies and systems, including **remuneration, bonuses, diverse training, and personal development programs**[42](index=42&type=chunk) - The Group adopted a share option scheme to reward contributors, but **no share options were granted** during the period under review[43](index=43&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=16&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) For the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed shares - 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 shares**[44](index=44&type=chunk) [Corporate Governance Practices](index=16&type=section&id=Corporate%20Governance%20Practices) To the best of the Directors' knowledge, the Company has complied with the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules for the six months ended June 30, 2025 - The Company has **complied with the Corporate Governance Code** set out in Appendix C1 Part 2 of the Listing Rules for the six months ended June 30, 2025[45](index=45&type=chunk) [Standard Code for Securities Transactions](index=16&type=section&id=Standard%20Code%20for%20Securities%20Transactions) The Company has adopted a code of conduct no less exacting than the Standard Code in Appendix C3 of the Listing Rules, and all Directors and senior management have confirmed compliance - The Company has adopted a code of conduct **no less exacting than the Standard Code** set out in Appendix C3 of the Listing Rules, and each Director has confirmed compliance with the code[46](index=46&type=chunk) - Senior management is also required to comply with the provisions of the Standard Code and the Company's code of conduct regarding Directors' securities transactions[46](index=46&type=chunk) [Nomination Committee](index=16&type=section&id=Nomination%20Committee) The Nomination Committee is chaired by Executive Director Mr. Liu Yang and includes two independent non-executive Directors, with no meetings held during the period under review - The Nomination Committee is chaired by Executive Director Mr. Liu Yang, with members including Independent Non-executive Directors Mr. Leung Kam Wan and Mr. Liu Chenguang[47](index=47&type=chunk) - **No Nomination Committee meetings were held** during the period under review[47](index=47&type=chunk) [Remuneration Committee](index=17&type=section&id=Remuneration%20Committee) The Remuneration Committee is chaired by Independent Non-executive Director Mr. Liu Chenguang and has three other members, with no meetings held during the period under review - The Remuneration Committee is chaired by Independent Non-executive Director Mr. Liu Chenguang, with members including Independent Non-executive Directors Mr. Leung Kam Wan, Ms. Shan Honghong, and Executive Director Mr. Liu Yang[48](index=48&type=chunk) - **No Remuneration Committee meetings were held** during the period under review[48](index=48&type=chunk) [Audit Committee](index=17&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive Directors and chaired by Mr. Leung Kam Wan, has reviewed accounting principles, internal controls, independent auditor's work, and the unaudited condensed financial information without objection - The Audit Committee comprises **three independent non-executive Directors**, with Mr. Leung Kam Wan as Chairman[49](index=49&type=chunk) - The Committee has reviewed the Company's adopted accounting principles and practices, compliance with Listing Rules, internal controls, statutory requirements, and financial reporting[49](index=49&type=chunk) - The Audit Committee has reviewed the unaudited condensed financial information and has **no objections to the accounting treatments adopted by the Company** during the period under review[49](index=49&type=chunk) [Events After the Reporting Period](index=17&type=section&id=Events%20After%20the%20Reporting%20Period) As of the announcement date, the Group had no other significant events after June 30, 2025 - As of the announcement date, the Group had **no other significant events after June 30, 2025**[50](index=50&type=chunk)