Core Viewpoint - The Hong Kong gold stocks are experiencing a strong rally, driven by rising silver prices and expectations of potential interest rate cuts by the Federal Reserve [1] Group 1: Market Performance - China Silver Group surged by 8.5%, leading the gains among gold stocks [1] - Zhaojin Mining increased by 7.3%, reaching a new historical high [1] - Other companies such as Shandong Gold, Lingbao Gold, China Gold International, and Zijin Mining also hit historical highs [1] Group 2: Commodity Prices - The strong upward trend in spot silver prices is approaching $40 per ounce, with a potential breakthrough imminent [1] - The market is preparing for significant upcoming events, including important U.S. data releases and the FOMC meeting [1] Group 3: Federal Reserve Expectations - There is a growing consensus that the Federal Reserve may initiate one or two interest rate cuts within this year, which would support commodity prices, including gold and silver [1] - Several international financial institutions are bullish on gold prices, with UBS raising its target for gold prices to $3,700 per ounce by mid-2026 [1] - Bank of America analysts predict that gold prices could reach $4,000 per ounce by mid-2026 [1]

Group 1 - Gold stocks have shown significant gains, with China Silver Group rising by 10.64% to HKD 0.52, and other companies like Zhaojin Mining and Shandong Gold also experiencing notable increases [1] - On September 1, spot gold prices reached USD 3,450, influenced by political tensions surrounding the Federal Reserve and deteriorating U.S. non-farm employment data, which are seen as strong bullish catalysts for gold prices [1] - JPMorgan forecasts that gold prices could reach USD 3,675 per ounce by the end of the year, with a potential rise to USD 4,000 per ounce by early next year [1] Group 2 - Huaxi Securities highlights that rising tariffs are impacting the U.S. economy, leading to increased consumer concerns about inflation, which may create favorable conditions for a potential interest rate cut and subsequent depreciation of the dollar [2] - In a high-inflation environment, interest rate cuts are likely to drive up gold prices, benefiting from global monetary and debt concerns [2] - The passage of the "Big and Beautiful" bill is expected to increase the U.S. fiscal deficit by USD 3.4 trillion, which is anticipated to positively impact future gold prices and enhance profit expectations for gold resource stocks [2]

Group 1: Silver Market Insights - The strong upward trend in spot silver prices is approaching $40 per ounce, with a potential breakout imminent [1] - Industrial demand for silver, particularly from solar panel applications, is supporting its price, leading to increased investments in silver-backed exchange-traded funds (ETFs) [1] - August marked the seventh consecutive month of expansion for these silver ETFs, the longest continuous inflow since 2020 [1] Group 2: Gold Market Insights - Gold remains a key hedge against short-term global policy fluctuations and growing skepticism regarding the Federal Reserve's credibility [1] - Morgan Stanley predicts that gold prices could reach $3,675 per ounce by the end of the year, with a potential rise to $4,000 per ounce by early next year [1] - The independence of the Federal Reserve is under threat, particularly following President Trump's attempt to remove a Fed governor, which could act as a strong bullish catalyst for gold prices [1] Group 3: Related Companies in Gold and Silver - Key companies in the gold industry include Zijin Mining (601899)(02899), Shandong Gold (600547)(01787), and Zhaojin Mining (01818) [2] - In the silver sector, China Silver Group (00815) reported a revenue of RMB 2.33 billion for the six months ending June 30, 2025, a year-on-year increase of 0.5%, with a profit attributable to shareholders of RMB 54.91 million, up 167.13% [3]

Group 1: Silver Market Insights - The strong upward trend in spot silver prices is approaching $40 per ounce, with a potential breakthrough imminent [1] - Industrial demand for silver, particularly from solar panel applications, is supporting its price, leading to increased investments in silver-backed exchange-traded funds (ETFs) [1] - In August, silver-backed ETFs experienced their longest continuous inflow since 2020, marking the seventh consecutive month of expansion [1] Group 2: Gold Market Insights - Gold remains a key hedge against short-term global policy volatility and growing skepticism regarding the Federal Reserve's credibility [1] - JPMorgan forecasts that gold prices could reach $3,675 per ounce by the end of the year, with a potential rise to $4,000 per ounce by early next year [1] - The independence of the Federal Reserve is under threat, particularly following President Trump's attempt to remove a Fed governor, which could act as a strong bullish catalyst for gold prices [1] Group 3: Related Companies in the Gold Industry - Key companies in the gold industry include Zijin Mining (02899), Shandong Gold (01787), Zhaojin Mining (01818), and others [2] Group 4: Related Companies in the Silver Industry - China Silver Group (00815) reported a revenue of RMB 2.33 billion for the six months ending June 30, 2025, a year-on-year increase of 0.5%, with a profit attributable to owners of RMB 54.91 million, up 167.13% [3]

Group 1 - Hong Kong gold stocks surged, with China Gold International, Zhaojin Mining, and Chifeng Jilong Gold rising over 5%, while Lingbao Gold and Tongguan Gold increased over 4%, and China Silver Group and Zijin Mining rose over 3% [1] Group 2 - President Trump announced the immediate dismissal of Federal Reserve Governor Lisa Cook, which analysts believe could lead to Trump gaining control over four seats at the Fed, raising concerns about the Fed's independence [3] - The dismissal is expected to increase rate cut expectations, driving investors towards traditional safe-haven assets like gold and the Japanese yen, as well as cryptocurrencies [3] - Selena Ling from OCBC Bank anticipates a 25 basis point rate cut in the Fed's September meeting, with a total potential reduction of up to 75 basis points for the year, predicting five rate cuts over the next two years [3] - Ling projects gold prices to reach $3,570 per ounce by the end of the year and $3,850 by mid-next year, driven by ongoing demand from central banks, institutions, and retail investors, alongside geopolitical and political factors [3]

Core Viewpoint - China Silver Group (00815) reported a revenue of RMB 2.33 billion for the six months ending June 30, 2025, representing a year-on-year increase of 0.5% [1] - The profit attributable to the company's owners reached RMB 54.91 million, a significant year-on-year increase of 167.13%, with earnings per share of RMB 0.02 [1] Financial Performance - The substantial increase in net profit is primarily attributed to the jewelry new retail business segment, which saw a remarkable increase of approximately 1058.7% in gold product sales for the first half of 2025 compared to the same period in 2024 [1] - The significant rise in gold prices during the first half of 2025, along with the fact that most gold products sold were from inventory with lower procurement and/or processing costs, led to a substantial increase in the gross profit margin for gold product sales [1] - Overall gross profit for the group increased significantly by approximately 103.0% in the first half of 2025 compared to the same period in 2024 [1] Business Transactions - On January 13, 2025, the group completed the sale of its fresh food retail business segment, previously operated by Zhu Feng Gold Group, resulting in a gain of approximately RMB 11.5 million (after allocating related earnings to non-controlling interests) [1]

Group 1 - The core viewpoint of the news is that China Silver Group reported significant increases in revenue and net profit for the first half of 2025 compared to the same period in 2024 [1] - The group's revenue for the first half of 2025 was approximately RMB 2.33 billion, reflecting an increase of about 0.5% from the first half of 2024 [1] - The profit from continuing operations for the first half of 2025 was approximately RMB 62.8 million, a substantial increase of about 139.8% compared to the first half of 2024 [1] - The net profit attributable to shareholders for the first half of 2025 was approximately RMB 54.9 million, representing a significant increase of about 167.1% from approximately RMB 20.6 million in the first half of 2024 [1] Group 2 - The substantial increase in net profit is primarily attributed to the jewelry new retail business segment, which saw a dramatic increase of approximately 1,058.7% in gold product sales for the first half of 2025 compared to the first half of 2024 [2] - The significant rise in gold prices during the first half of 2025, along with the sale of mostly inventory products at lower procurement and processing costs, led to a substantial increase in the gross profit margin for gold product sales [2] - The overall gross profit for the group increased significantly by approximately 103.0% in the first half of 2025 compared to the same period in 2024 [2] - The group recorded a gain of approximately RMB 11.5 million from the sale of its fresh food retail business segment, which was completed on January 13, 2025 [2] - The increase in profit was partially offset by a share-based payment expense of approximately RMB 18.5 million related to stock options granted to employees by the jewelry new retail business segment [2]

Core Viewpoint - China Silver Group (00815) reported a revenue of RMB 2.33 billion for the six months ending June 30, 2025, representing a year-on-year increase of 0.5% [1] - The profit attributable to shareholders reached RMB 54.91 million, a significant increase of 167.13% year-on-year, with earnings per share at RMB 0.02 [1] Revenue and Profit Analysis - The substantial increase in net profit is primarily attributed to the jewelry new retail business segment, operated by Zhumeng Gold Group, which saw a remarkable increase of approximately 1058.7% in gold product sales for the first half of 2025 compared to the same period in 2024 [1] - The significant rise in gold prices during the first half of 2025, along with the fact that most gold products sold were from inventory with lower procurement and/or processing costs, led to a substantial increase in gross profit margin for gold product sales [1] - Overall gross profit for the group increased significantly by approximately 103.0% in the first half of 2025 compared to the same period in 2024 [1] Business Divestiture - On January 13, 2025, the group completed the sale of its fresh food retail business segment, previously operated by Zhumeng Gold Group, which generated approximately RMB 11.5 million in revenue after distributing related earnings to non-controlling interests [1]

Core Viewpoint - China Silver Group (00815) reported a revenue of RMB 2.33 billion for the six months ending June 30, 2025, reflecting a year-on-year increase of 0.5% and a significant rise in net profit attributable to shareholders by 167.13% to RMB 54.91 million, with earnings per share at RMB 0.02 [1] Financial Performance - The group's revenue for the first half of 2025 was RMB 2.33 billion, a slight increase of 0.5% compared to the previous year [1] - Net profit attributable to shareholders surged to RMB 54.91 million, marking a substantial increase of 167.13% year-on-year [1] - Earnings per share stood at RMB 0.02 [1] Business Segments - The jewelry new retail business segment, operated by Zhu Feng Gold Group, saw a remarkable increase in gold product sales by approximately 1058.7% in the first half of 2025 compared to the same period in 2024 [1] - The significant rise in gold prices during the first half of 2025, along with the sale of mostly inventory products at lower procurement and processing costs, led to a substantial increase in gross profit margin for gold product sales [1] - Overall gross profit for the group increased significantly by approximately 103.0% compared to the first half of 2024 [1] Asset Disposal - On January 13, 2025, the group completed the sale of its fresh food retail business segment, previously operated by Zhu Feng Gold Group, which generated approximately RMB 11.5 million in income after distributing related earnings to non-controlling interests [1]

[2025 Interim Results Highlights](index=1&type=section&id=2025%20Interim%20Results%20Highlights) This section provides a high-level overview of the Group's financial performance and key drivers for the first half of 2025 [Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) The Group's revenue slightly increased by 0.5% to RMB 2,329.7 million in H1 2025, with profit from continuing operations surging 139.8% to RMB 62.8 million and net profit attributable to owners increasing 167.1% to RMB 54.9 million Financial Performance Summary (RMB million) | Indicator | H1 2025 | H1 2024 | YoY Growth | | :--- | :--- | :--- | :--- | | Revenue | 2,329.7 | 2,319.0 | 0.5% | | Profit for the period from continuing operations | 62.8 | 26.2 | 139.8% | | Net profit attributable to owners of the Company | 54.9 | 20.6 | 167.1% | [Reasons for Significant Net Profit Growth](index=2&type=section&id=Reasons%20for%20Significant%20Net%20Profit%20Growth) Net profit growth was driven by a 1,058.7% increase in gold product sales and improved gross margin in new retail jewelry, plus RMB 11.5 million gain from fresh food retail business disposal, partially offset by RMB 18.5 million share-based payment expense - Jewelry new retail business gold product sales significantly increased by approximately **1,058.7%** year-on-year, with most gold products sold from low-cost inventory, coupled with rising gold prices, leading to a significant increase in gross margin and an overall gross profit growth of approximately **103.0%**[4](index=4&type=chunk) - Completed the disposal of the fresh food retail business, generating a gain of approximately **RMB 11.5 million** for the Group (after allocating related gains to non-controlling interests)[4](index=4&type=chunk) - The grant of share options by Everest Gold Group to employees resulted in share-based payment expenses of approximately **RMB 18.5 million**, partially offsetting the net profit growth[3](index=3&type=chunk) [Condensed Consolidated Financial Statements](index=3&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the Group's condensed consolidated financial statements, including the statement of profit or loss and other comprehensive income, and the statement of financial position for the interim period [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) In H1 2025, continuing operations revenue was RMB 2,329.7 million, gross profit surged to RMB 142.0 million, profit before tax was RMB 85.5 million, and profit for the period was RMB 62.8 million, with basic and diluted EPS of RMB 0.02 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (RMB thousand) | Indicator | H1 2025 | H1 2024 (Restated) | | :--- | :--- | :--- | | Revenue | 2,329,712 | 2,318,997 | | Cost of sales | (2,187,674) | (2,249,028) | | Gross profit | 142,038 | 69,969 | | Profit before income tax | 85,494 | 28,162 | | Profit for the period from continuing operations | 62,805 | 26,190 | | Loss for the period from discontinued operations | – | (15,888) | | Gain on disposal of subsidiaries | 11,465 | – | | Total profit and comprehensive income for the period | 74,270 | 10,302 | | Profit for the period attributable to owners of the Company | 54,911 | 20,556 | [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, non-current assets increased to RMB 205.8 million, current assets to RMB 1,915.1 million, and net current assets to RMB 1,253.6 million, with total equity reaching RMB 1,458.1 million Condensed Consolidated Statement of Financial Position (RMB thousand) | Indicator | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Non-current assets | 205,800 | 129,700 | | Current assets | 1,915,104 | 1,849,176 | | Current liabilities | 661,551 | 758,750 | | Net current assets | 1,253,553 | 1,090,426 | | Total equity | 1,458,069 | 1,218,348 | | Equity attributable to owners of the Company | 606,579 | 461,437 | [Notes to the Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section details the basis of preparation, significant accounting policies, segment information, revenue breakdown, tax expenses, and other financial notes for the interim period [Basis of Preparation and Accounting Policies](index=7&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) The condensed consolidated financial statements are prepared in accordance with IAS 34 and HKEX Listing Rules, reflecting the disposal of the fresh food retail business as a discontinued operation with restated comparative figures - The condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" issued by the International Accounting Standards Board and the applicable disclosure requirements of Appendix D2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[11](index=11&type=chunk) - The Group completed the disposal of 51% equity interest in Shenzhen Xiansheng Zhanggui Technology Co., Ltd. on January 13, 2025, and the fresh food retail business is classified as a discontinued operation, with comparative figures for H1 2024 restated[11](index=11&type=chunk) [Basis of Preparation](index=7&type=section&id=Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in accordance with IAS 34 "Interim Financial Reporting" and applicable disclosure requirements of Appendix D2 of the HKEX Listing Rules - The condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" issued by the International Accounting Standards Board and the applicable disclosure requirements of Appendix D2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[11](index=11&type=chunk) [Significant Accounting Policies](index=7&type=section&id=Significant%20Accounting%20Policies) The condensed consolidated financial statements are prepared on a historical cost basis, with accounting policies consistent with the 2024 annual financial statements, except for new policies from revised IFRS - The condensed consolidated financial statements are prepared on a **historical cost basis**[12](index=12&type=chunk) - Except for new accounting policies resulting from the application of revised International Financial Reporting Standards, the accounting policies and methods of computation used are consistent with those followed in the 2024 annual financial statements[12](index=12&type=chunk) [Application of Revised International Financial Reporting Standards](index=8&type=section&id=Application%20of%20Revised%20International%20Financial%20Reporting%20Standards) Revised IFRS, effective from January 1, 2025, were first applied in this interim period but had no material impact on the Group's financial position or performance - Revised International Financial Reporting Standards, such as amendments to IAS 21 "Lack of Exchangeability", were first applied in this interim period[13](index=13&type=chunk) - The application of the revised International Financial Reporting Standards had **no material impact** on the Group's financial position and performance for the current and prior periods[13](index=13&type=chunk) [Segment Information](index=8&type=section&id=Segment%20Information) The Group operates two reportable segments: manufacturing and new retail jewelry, with the fresh food retail business having been terminated and disposed of during the period - The Group has two operating and reportable segments: manufacturing business (manufacturing, sales, and trading of silver ingots, palladium, and other non-ferrous metals) and new retail jewelry business (design and sales of gold, silver, colored gemstones, and other jewelry products)[14](index=14&type=chunk)[16](index=16&type=chunk) - The fresh food retail business was terminated and disposed of during the period ended June 30, 2025[14](index=14&type=chunk) [Overview of Operating Segments](index=8&type=section&id=Overview%20of%20Operating%20Segments) The Group currently has two operating segments, manufacturing and new retail jewelry, with the fresh food retail business terminated and disposed of in this interim period - The Group has two operating and reportable segments: manufacturing business and new retail jewelry business[14](index=14&type=chunk)[16](index=16&type=chunk) - The fresh food retail business was terminated and disposed of during the period ended June 30, 2025[14](index=14&type=chunk) [Segment Revenue and Results](index=9&type=section&id=Segment%20Revenue%20and%20Results) In H1 2025, manufacturing business external sales were RMB 2,093.4 million with segment results of RMB 36.5 million, while new retail jewelry external sales surged to RMB 236.3 million with segment results significantly improving to RMB 58.2 million Segment Revenue and Results (RMB thousand) | Segment | H1 2025 External Sales | H1 2025 Segment Results | H1 2024 External Sales (Restated) | H1 2024 Segment Results (Restated) | | :--- | :--- | :--- | :--- | :--- | | Manufacturing Business | 2,093,384 | 36,526 | 2,220,488 | 38,980 | | New Retail Jewelry Business | 236,328 | 58,233 | 98,509 | 5,438 | | **Total** | **2,329,712** | **94,759** | **2,318,997** | **44,418** | [Segment Assets and Liabilities](index=11&type=section&id=Segment%20Assets%20and%20Liabilities) As of June 30, 2025, new retail jewelry segment assets were significantly higher than manufacturing, with total assets of RMB 2,120.9 million and total liabilities of RMB 662.8 million Segment Assets and Liabilities (RMB thousand) | Segment | June 30, 2025 Segment Assets | June 30, 2025 Segment Liabilities | December 31, 2024 Segment Assets (Audited) | December 31, 2024 Segment Liabilities (Audited) | | :--- | :--- | :--- | :--- | :--- | | Manufacturing Business | 390,389 | 301,444 | 431,444 | 458,597 | | New Retail Jewelry Business | 1,728,729 | 354,194 | 1,515,465 | 190,811 | | **Total** | **2,119,118** | **655,638** | **1,946,909** | **649,408** | [Other Segment Information](index=12&type=section&id=Other%20Segment%20Information) In H1 2025, continuing operations reported intangible asset amortization of RMB 181 thousand, property, plant and equipment depreciation of RMB 6,916 thousand, and right-of-use asset depreciation of RMB 757 thousand Other Segment Information (RMB thousand) | Indicator | H1 2025 | H1 2024 (Restated) | | :--- | :--- | :--- | | Amortisation of intangible assets | (181) | (182) | | Depreciation of property, plant and equipment | (6,916) | (7,466) | | Depreciation of right-of-use assets | (757) | (1,776) | | Net reversal (provision) for impairment losses | 1,577 | (2,908) | | Write-off of leasehold improvements | (2,710) | – | [Geographical Information](index=13&type=section&id=Geographical%20Information) All of the Group's operations and revenue are generated within China - All of the Group's operations and revenue are generated within China[24](index=24&type=chunk) [Revenue](index=14&type=section&id=Revenue) In H1 2025, the Group's total revenue from continuing operations was RMB 2,329.7 million, with manufacturing contributing RMB 2,093.4 million and new retail jewelry contributing RMB 236.3 million, driven by a 1,058.7% increase in gold product sales Revenue by Product Category (RMB thousand) | Product Category | H1 2025 | H1 2024 (Restated) | | :--- | :--- | :--- | | **Manufacturing Business** | | | | Sales of silver ingots | 2,093,384 | 2,220,488 | | **New Retail Jewelry Business** | | | | Sales of gold products | 145,391 | 12,548 | | Sales of silver products | 90,871 | 83,633 | | Sales of gemstones and other jewelry products | 66 | 527 | | Sales of colored gemstones | – | 1,801 | | **Total** | **2,329,712** | **2,318,997** | - Sales of gold products in the new retail jewelry business increased significantly by approximately **1,058.7%** compared to H1 2024[26](index=26&type=chunk) [Income Tax Expense](index=15&type=section&id=Income%20Tax%20Expense) In H1 2025, income tax expense from continuing operations increased to RMB 22.7 million, primarily due to higher PRC corporate income tax provision Income Tax Expense (RMB thousand) | Indicator | H1 2025 | H1 2024 (Restated) | | :--- | :--- | :--- | | PRC corporate income tax | 22,047 | 2,557 | | Deferred tax | 642 | (585) | | **Total** | **22,689** | **1,972** | - The increase in income tax expense was primarily due to an increase in the provision for PRC corporate income tax for the new retail jewelry business[28](index=28&type=chunk) [Profit for the Period](index=16&type=section&id=Profit%20for%20the%20Period) In H1 2025, profit from continuing operations was RMB 62.8 million, with key deductions including inventory costs, depreciation, amortization, and RMB 18.5 million in share-based payment expenses Profit for the Period (RMB thousand) | Indicator | H1 2025 | H1 2024 (Restated) | | :--- | :--- | :--- | | Cost of inventories recognised as an expense | 2,187,674 | 2,249,028 | | Depreciation of property, plant and equipment | 6,916 | 7,466 | | Depreciation of right-of-use assets | 757 | 1,776 | | Amortisation of intangible assets | 181 | 182 | | Share-based payment expenses | 18,543 | – | [Dividends](index=16&type=section&id=Dividends) The Board resolved not to declare an interim dividend for H1 2025, consistent with the prior year - No dividends were paid, declared, or proposed to ordinary shareholders for H1 2025 and H1 2024[31](index=31&type=chunk) [Earnings Per Share](index=17&type=section&id=Earnings%20Per%20Share) In H1 2025, basic and diluted earnings per share from continuing operations were both RMB 0.02, with profit attributable to owners from continuing operations at RMB 43.4 million Earnings Per Share | Indicator | H1 2025 | H1 2024 (Restated) | | :--- | :--- | :--- | | Profit for the period from continuing operations attributable to owners of the Company for the purpose of calculating basic and diluted earnings per share (RMB thousand) | 43,446 | 25,503 | | Profit (loss) for the period from discontinued operations attributable to owners of the Company for the purpose of calculating basic and diluted earnings (loss) per share (RMB thousand) | 11,465 | (4,947) | | Weighted average number of ordinary shares (thousand shares) | 2,284,240 | 1,954,081 | | **Basic and diluted earnings per share (continuing operations)** | **0.02** | **0.01** | [Movements in Property, Plant and Equipment / Right-of-Use Assets / Intangible Assets](index=17&type=section&id=Movements%20in%20Property%2C%20Plant%20and%20Equipment%20%2F%20Right-of-Use%20Assets%20%2F%20Intangible%20Assets) In H1 2025, the Group acquired approximately RMB 81 million in vehicles and leased land and buildings through subsidiary acquisition, and wrote off RMB 2.7 million in leasehold improvements - In H1 2025, the Group purchased vehicles for **RMB 1.1 million** and acquired subsidiaries to obtain leased land and buildings for office premises, valued at **RMB 79.9 million**[33](index=33&type=chunk) - Leasehold improvements with a carrying amount of **RMB 2.7 million** were written off[33](index=33&type=chunk) - Additions to intangible assets included the acquisition of patents for **RMB 20 thousand** and capitalisation of exploration rights for **RMB 5.5 million**[34](index=34&type=chunk) [Trade and Other Receivables](index=18&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2025, trade and other receivables increased to RMB 178.4 million, with trade receivables from customer contracts at RMB 139.0 million (RMB 122.1 million net of provision), and trade receivables turnover days increasing to 7.0 days Trade and Other Receivables (RMB thousand) | Indicator | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Trade receivables from contracts with customers | 139,028 | 73,601 | | Less: Provision for expected credit losses on trade receivables | (16,885) | (18,462) | | Other receivables, deposits and prepayments | 41,425 | 26,864 | | Recoverable value added tax | 14,247 | 6,572 | | **Total** | **178,369** | **140,542** | Ageing Analysis of Trade Receivables (RMB thousand) | Ageing | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | 0 to 30 days | 119,247 | 45,660 | | 31 to 60 days | 296 | 744 | | 61 to 90 days | 51 | 305 | | Over 90 days | 2,549 | 8,430 | | **Total** | **122,143** | **55,139** | [Net Reversal (Provision) for Impairment Losses under Expected Credit Loss Model](index=19&type=section&id=Net%20Reversal%20%28Provision%29%20for%20Impairment%20Losses%20under%20Expected%20Credit%20Loss%20Model) In H1 2025, continuing operations recorded a net reversal of impairment losses of RMB 1.6 million, compared to a net provision of RMB 2.9 million in the prior year Net Reversal (Provision) for Impairment Losses (RMB thousand) | Indicator | H1 2025 | H1 2024 (Restated) | | :--- | :--- | :--- | | Net reversal (provision) for impairment losses from continuing operations | 1,577 | (2,908) | [Discontinued Operations](index=20&type=section&id=Discontinued%20Operations) The Group completed the disposal of its fresh food retail business on January 13, 2025, recognizing a gain on disposal of RMB 11.5 million, after incurring a loss of RMB 15.9 million in H1 2024 - The Group completed the disposal of its entire equity interest in the fresh food retail business (Nongmuren Group) on January 13, 2025, for a consideration of **RMB 300 thousand**[40](index=40&type=chunk) Profit (Loss) for the Period from Discontinued Operations (RMB thousand) | Indicator | January 1 to January 13, 2025 | H1 2024 (Unaudited) | | :--- | :--- | :--- | | Loss for the period from discontinued operations | – | (15,888) | | Gain on disposal of subsidiaries | 11,465 | – | | **Profit (loss) for the period from discontinued operations** | **11,465** | **(15,888)** | Assets and Liabilities of Discontinued Operations as of December 31, 2024 (Audited) (RMB thousand) | Indicator | Amount | | :--- | :--- | | Assets classified as held for sale | 29,890 | | Liabilities directly associated with assets classified as held for sale | 97,732 | [Trade and Other Payables](index=25&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables amounted to RMB 280.1 million, an increase from year-end 2024, including trade payables of RMB 33.3 million and bills payable of RMB 44.0 million Trade and Other Payables (RMB thousand) | Indicator | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Trade payables | 33,258 | 19,609 | | Other payables and accrued expenses | 152,731 | 72,604 | | Bills payable | 43,960 | 79,600 | | Value added tax and other taxes payable | 42,743 | 18,974 | | Provision for termination of transfer contracts | 7,413 | 7,413 | | **Total** | **280,105** | **198,200** | - The ageing analysis of trade payables shows that amounts over 90 days increased from **RMB 15.3 million** as of December 31, 2024, to **RMB 22.2 million** as of June 30, 2025[49](index=49&type=chunk) [Bank and Other Borrowings](index=27&type=section&id=Bank%20and%20Other%20Borrowings) As of June 30, 2025, bank and other borrowings decreased significantly to RMB 263.5 million from RMB 400.9 million at year-end 2024, resulting in a net cash position with a net debt-to-equity ratio of approximately -25.4% Bank and Other Borrowings (RMB million) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Bank and other borrowings balance | 263.5 | 400.9 | | Net debt-to-equity ratio | -25.4% | -10.3% | - Borrowings are secured by leased land and buildings, personal guarantees from company directors and their spouses, guarantees from suppliers and independent third parties, and pledges of assets[51](index=51&type=chunk) - Approximately **RMB 112.0 million** bears interest at fixed annual rates ranging from **3.75% to 5.61%**, and **RMB 151.5 million** bears interest at the prime lending rate plus **1.70% to 2.05%** per annum[52](index=52&type=chunk) [Acquisition of Subsidiaries Accounted for as Asset Acquisition](index=27&type=section&id=Acquisition%20of%20Subsidiaries%20Accounted%20for%20as%20Asset%20Acquisition) On May 25, 2025, the Group acquired 100% equity in four target companies for a total consideration of RMB 80 million to obtain leased land and buildings for future office space, accounted for as an asset acquisition - The Group acquired 100% equity interest in four target companies, including Shenzhen Heqingde Investment Development Co., Ltd., for a total consideration of **RMB 80 million**[53](index=53&type=chunk) - The acquisition aims to obtain leased land and buildings for office premises required for the Group's future business development and is accounted for as an asset acquisition[53](index=53&type=chunk) Acquired Assets (RMB thousand) | Acquired Asset | Amount | | :--- | :--- | | Leased land and buildings | 79,895 | | Other receivables | 130 | | Bank balances and cash | 315 | | Other payables | (340) | | Consideration payable | 80,000 | [Management Discussion and Analysis](index=29&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the Group's business performance, strategic adjustments, segment-specific reviews, and future outlook, highlighting key drivers and challenges [Business Review](index=29&type=section&id=Business%20Review) In H1 2025, macroeconomic uncertainty boosted precious metal demand, leading to significant price increases for gold and silver, prompting the Group to shift its strategic focus to gold and expand upstream through acquisitions, while the fresh food retail business was terminated - Macroeconomic uncertainty, geopolitical instability, and trade tensions drove up demand for precious metals, with gold prices rising from approximately **USD 2,000/ounce** in January 2024 to approximately **USD 3,300/ounce** in June 2025, and silver prices increasing from approximately **USD 24/ounce** to approximately **USD 36/ounce**[55](index=55&type=chunk) - The Group proactively adjusted its business strategy, shifting its strategic focus towards gold, and acquired a **55%** equity interest in Jiangxi Yiding Trade Co., Ltd. to expand its upstream business[55](index=55&type=chunk) - Profit for the period from continuing operations significantly increased by **139.8%** to **RMB 62.8 million**, and net profit attributable to owners of the Company significantly increased by **167.1%** to **RMB 54.9 million**[58](index=58&type=chunk) [Macroeconomic Environment and Strategic Adjustments](index=29&type=section&id=Macroeconomic%20Environment%20and%20Strategic%20Adjustments) In H1 2025, global macroeconomic uncertainty intensified, driving strong demand for precious metals and significant price increases for gold and silver, leading the Group to shift its strategic focus to gold and expand upstream through the acquisition of Jiangxi Yiding - Gold prices rose from approximately **USD 2,000/ounce** in January 2024 to approximately **USD 3,300/ounce** in June 2025, and silver prices increased from approximately **USD 24/ounce** to approximately **USD 36/ounce**[55](index=55&type=chunk) - The Group proactively adjusted its business strategy, shifting its strategic focus towards gold, and jointly acquired a **55%** equity interest in Jiangxi Yiding Trade Co., Ltd. with Everest Gold Group on June 26, 2025, to expand more upstream businesses[55](index=55&type=chunk) [Manufacturing Business](index=31&type=section&id=Manufacturing%20Business) The manufacturing segment, primarily producing silver ingots and palladium, saw external sales decrease by 5.7% to RMB 2,093.4 million and segment profit decline by 6.3% to RMB 36.5 million in H1 2025, mainly due to reduced revenue - The manufacturing business segment primarily focuses on producing high-quality silver ingots for industrial and trading purposes, being one of the leading silver producers in China[61](index=61&type=chunk) Manufacturing Business Performance (RMB million) | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | External Sales | 2,093.4 | 2,220.5 | -5.7% | | Segment Profit | 36.5 | 39.0 | -6.3% | [New Retail Jewelry Business](index=32&type=section&id=New%20Retail%20Jewelry%20Business) The new retail jewelry business achieved a 139.9% surge in external sales to RMB 236.3 million and significantly improved segment results to RMB 58.2 million in H1 2025, driven by the strategic sale of low-cost gold inventory and rising gold prices - External sales of the new retail jewelry business significantly increased by **139.9%** to **RMB 236.3 million**, accounting for **10.1%** of the Group's total revenue[62](index=62&type=chunk) - Segment results significantly improved to **RMB 58.2 million**, primarily benefiting from the proactive sale of existing low-cost gold inventory, with this positive impact partially offset by share-based payment expenses of approximately **RMB 18.5 million**[62](index=62&type=chunk) - Market demand for physical gold, especially investment products, significantly increased, leading to a substantial rise in sales of the Group's high-ticket, low-processing-fee investment gold bar products and a significant increase in gross margin[63](index=63&type=chunk) [Lab-Grown Diamond Brand SISI](index=33&type=section&id=Lab-Grown%20Diamond%20Brand%20SISI) The Group reduced marketing expenses for its lab-grown diamond brand SISI due to market oversupply and intense competition in China, and will carefully consider future investment and sales strategies to maintain profitability and liquidity - The Group reduced marketing expenses for its lab-grown diamond brand SISI[65](index=65&type=chunk) - The lab-grown diamond industry in China is relatively nascent, with market oversupply leading to price declines and intense retail market price competition[65](index=65&type=chunk) - The Group will carefully consider its investment and sales strategies for the SISI brand to maintain business profitability and ample liquidity[65](index=65&type=chunk) [Online Sales Channels](index=34&type=section&id=Online%20Sales%20Channels) The Group promotes and sells jewelry products through third-party platforms, including TV and video shopping channels, becoming a core supplier for top-tier TV stations, with short-video marketing and KOL endorsements now standard for brand promotion - The Group promotes and sells jewelry products through third-party platforms, including TV and video shopping channels, becoming a core supplier for gold and silver jewelry categories across all first-tier TV stations[66](index=66&type=chunk) - Short-video marketing and KOL endorsements have become standard for brand marketing, with content serving as the core of marketing, sales, and operations[66](index=66&type=chunk) [Offline Retail and Service Experience Channels](index=34&type=section&id=Offline%20Retail%20and%20Service%20Experience%20Channels) The Group maintains a jewelry showroom in Shenzhen Shuibei for wholesale clients and franchisees, while adjusting its offline retail network by no longer expanding CSmall experience stores, retaining only two franchised CSmall stores as of June 30, 2025 - The Group maintains a jewelry showroom in Shenzhen Shuibei, serving as an exhibition and sales interaction platform for wholesale customers and franchisees[67](index=67&type=chunk) - The Group adjusted its offline retail network layout, no longer expanding its original CSmall experience stores, and as of June 30, 2025, only two franchised CSmall experience stores are retained[68](index=68&type=chunk) [Development of Mineral Exploration Business](index=35&type=section&id=Development%20of%20Mineral%20Exploration%20Business) The Group is actively expanding its mineral exploration business in Tibet through acquisitions, with the Shannan exploration area showing potential for 20-25 tons of gold and the Gudui mining area's gold-antimony polymetallic deposit offering a new profit driver in semiconductor materials - The Group, through the acquisition of a **51%** equity interest in Jiangxi Letong, holds a **100%** equity interest in Tibet Longtianyong Mining Co., Ltd., which holds a mineral resource general survey and exploration permit for a **28.88 square kilometer** area in the Shannan exploration zone[69](index=69&type=chunk) - Multiple gold mineralization zones have been discovered in the Shannan exploration area, with an estimated inferred ore volume of approximately **2,100,000 tons** and an inferred gold metal content of approximately **5,800 kg**, with an average gold grade of approximately **2.77 grams/ton**, and a preliminary estimated prospective gold metal content of approximately **20 to 25 tons**[69](index=69&type=chunk) - The exploration stage of the prospecting right has been upgraded from "general survey" to "detailed survey", and the Gudui mining area's gold-antimony polymetallic deposit is a typical gold-antimony deposit, where the associated antimony revenue is expected to become a significant profit growth point for the project and enter the core semiconductor materials sector[70](index=70&type=chunk) - The Group, in conjunction with Everest Gold Group, acquired a **55%** equity interest in Jiangxi Yiding Trade Co., Ltd., which holds a **100%** equity interest in Huaye Mining Development Co., Ltd. in Xigaze City, Tibet, primarily engaged in lead-zinc exploration, with the mining area located in the core of the Gangdese metallogenic belt, possessing rich polymetallic deposit potential[71](index=71&type=chunk) [Discontinued Operations](index=37&type=section&id=Discontinued%20Operations) The Group completed the disposal of its fresh food retail business (Nongmuren platform) on January 13, 2025, realizing a gain of approximately RMB 11.5 million, to refocus management attention and resources on its core gold and silver jewelry retail business - The Group completed the disposal of its entire **51%** equity interest in the fresh food retail business (Nongmuren platform) on January 13, 2025[73](index=73&type=chunk) - The disposal generated a gain of approximately **RMB 11.5 million**[73](index=73&type=chunk) - The disposal aims to enable the Group to focus management attention and financial and human resources on its core gold and silver jewelry retail business[73](index=73&type=chunk) [Outlook](index=37&type=section&id=Outlook) In 2025, global macroeconomic uncertainty is expected to persist, driving demand for precious metals as safe-haven and industrial assets, prompting the Group to focus on its core gold and silver jewelry business, optimize structure, and expand strategically to become a benchmark in the gold sector, potentially entering the RWA market - Global macroeconomic uncertainty is expected to persist in 2025, with continued growth in demand for precious metals as traditional safe-haven assets and for industrial applications[74](index=74&type=chunk) - The Group will further focus on its core gold and silver jewelry business segment, continuously optimize its business structure, and create more stable and sustainable revenue streams for shareholders by strengthening product R&D innovation and diversifying channel expansion[75](index=75&type=chunk) - Through strategic expansion of resource reserves (such as the acquisitions of Jiangxi Letong and Jiangxi Yiding), the Group is poised for leapfrog development, striving to become a benchmark enterprise in the gold sector[75](index=75&type=chunk) - The Group is closely monitoring the development trend of Real World Assets (RWA) and does not rule out the possibility of entering the gold and precious metals RWA market at an opportune time, leveraging its integrated upstream and downstream capabilities and experience in operating precious metals trading platforms[77](index=77&type=chunk) [Financial Review](index=40&type=section&id=Financial%20Review) This section provides a detailed analysis of the Group's financial performance, including revenue, cost of sales, gross profit, expenses, and liquidity, for the interim period [Revenue](index=40&type=section&id=Revenue) In H1 2025, the Group's continuing operations revenue was RMB 2,329.7 million, a slight 0.5% increase from H1 2024, with manufacturing contributing 89.9% and new retail jewelry 10.1% Revenue by Segment (RMB thousand) | Indicator | H1 2025 | % of Total | H1 2024 (Restated) | % of Total | | :--- | :--- | :--- | :--- | :--- | | Manufacturing Business (Sales of silver ingots) | 2,093,384 | 89.9% | 2,220,488 | 95.8% | | New Retail Jewelry Business (Sales of gold, silver, colored gemstones and gemstones and other jewelry products) | 236,328 | 10.1% | 98,509 | 4.2% | | **Total** | **2,329,712** | **100.0%** | **2,318,997** | **100.0%** | [Manufacturing Business Segment](index=41&type=section&id=Manufacturing%20Business%20Segment) The manufacturing business segment's external sales of silver ingots decreased by approximately 5.7% to RMB 2,093.4 million in H1 2025 from RMB 2,220.5 million in H1 2024 - External sales of silver ingots by the manufacturing business segment decreased by approximately **5.7%** year-on-year to **RMB 2,093.4 million**[81](index=81&type=chunk) [New Retail Jewelry Business Segment](index=41&type=section&id=New%20Retail%20Jewelry%20Business%20Segment) The new retail jewelry business segment's sales surged by 139.9% to RMB 236.3 million, primarily driven by a 1,058.7% increase in gold product sales due to rising gold prices and strategic sales of low-cost inventory - Sales of the new retail jewelry business segment significantly increased by approximately **139.9%** year-on-year to **RMB 236.3 million**[82](index=82&type=chunk) - The increase was primarily due to a significant increase of approximately **1,058.7%** in gold product sales, benefiting from a substantial rise in gold prices and the proactive sale of existing low-cost inventory[82](index=82&type=chunk) [Cost of Sales](index=41&type=section&id=Cost%20of%20Sales) In H1 2025, cost of sales decreased by 2.7% to approximately RMB 2,187.7 million, mainly due to the new retail jewelry business strategically utilizing existing low-cost gold inventory - Cost of sales for H1 2025 was approximately **RMB 2,187.7 million**, representing a year-on-year decrease of approximately **2.7%**[84](index=84&type=chunk) - The decrease in cost of sales was primarily due to the new retail jewelry business strategically utilizing existing low-cost gold inventory to fulfill customer orders, rather than procuring at current higher market prices[84](index=84&type=chunk) [Gross Profit and Gross Margin](index=42&type=section&id=Gross%20Profit%20and%20Gross%20Margin) In H1 2025, gross profit significantly increased by 103.0% to RMB 142.0 million, with the overall gross margin improving from 3.0% to 6.1%, primarily driven by increased gold product sales from low-cost inventory and rising gold prices in the new retail jewelry business Gross Profit and Gross Margin (RMB million) | Indicator | H1 2025 | H1 2024 | YoY Growth | | :--- | :--- | :--- | :--- | | Gross Profit | 142.0 | 70.0 | 103.0% | | Gross Margin | 6.1% | 3.0% | +3.1pp | - The increase in gross profit was primarily due to a significant increase in gold product sales in the new retail jewelry business, with most gold products sold from low-cost inventory, coupled with rising gold prices, leading to a significant increase in gross margin[85](index=85&type=chunk) [Selling and Distribution Expenses](index=42&type=section&id=Selling%20and%20Distribution%20Expenses) In H1 2025, selling and distribution expenses increased by 32.9% to RMB 11.9 million, mainly due to a substantial increase in gold product sales within the new retail jewelry business Selling and Distribution Expenses (RMB million) | Indicator | H1 2025 | H1 2024 | YoY Growth | | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 11.9 | 9.0 | 32.9% | - The increase in selling and distribution expenses was primarily due to a significant increase in gold product sales in the new retail jewelry business segment[86](index=86&type=chunk) [Administrative Expenses](index=43&type=section&id=Administrative%20Expenses) In H1 2025, administrative expenses increased by 108.1% to RMB 41.4 million, primarily due to share-based payment expenses of approximately RMB 18.5 million incurred by Everest Gold Group Administrative Expenses (RMB million) | Indicator | H1 2025 | H1 2024 | YoY Growth | | :--- | :--- | :--- | :--- | | Administrative Expenses | 41.4 | 19.9 | 108.1% | - The increase in administrative expenses was primarily due to share-based payment expenses of approximately **RMB 18.5 million** incurred by Everest Gold Group[88](index=88&type=chunk) [Income Tax Expense](index=43&type=section&id=Income%20Tax%20Expense) In H1 2025, income tax expense increased to RMB 22.7 million, mainly due to increased provision for PRC corporate income tax in the new retail jewelry business Income Tax Expense (RMB million) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Income Tax Expense | 22.7 | 2.0 | - The increase in income tax expense was primarily due to an increase in the provision for PRC corporate income tax for the new retail jewelry business[89](index=89&type=chunk) [Profit Attributable to Owners of the Company](index=43&type=section&id=Profit%20Attributable%20to%20Owners%20of%20the%20Company) In H1 2025, profit attributable to owners of the Company from continuing operations increased by 70.4% to RMB 43.4 million, primarily due to improved overall revenue and profitability Profit Attributable to Owners of the Company from Continuing Operations (RMB million) | Indicator | H1 2025 | H1 2024 | YoY Growth | | :--- | :--- | :--- | :--- | | Profit Attributable to Owners of the Company from Continuing Operations | 43.4 | 25.5 | 70.4% | - The profit growth was primarily due to the improvement in overall revenue and profitability[90](index=90&type=chunk) [Discontinued Operations](index=43&type=section&id=Discontinued%20Operations) The Group completed the disposal of the Nongmuren platform business on January 13, 2025, realizing a gain of approximately RMB 11.5 million, to refocus management attention and resources on core businesses - The Group completed the disposal of the Nongmuren platform business on January 13, 2025, realizing a gain on disposal of approximately **RMB 11.5 million**[91](index=91&type=chunk) - The disposal aims to enable the Group to focus management attention and its financial and human resources on its core jewelry and metals businesses[91](index=91&type=chunk) [Turnover Days of Inventories, Trade Receivables and Trade Payables](index=44&type=section&id=Turnover%20Days%20of%20Inventories%2C%20Trade%20Receivables%20and%20Trade%20Payables) In H1 2025, inventory turnover days decreased to 91.8 days, trade receivables turnover days increased to 7.0 days, and trade payables turnover days decreased to 2.2 days, primarily influenced by increased sales and the nature of the new retail jewelry business Turnover Days | Indicator | H1 2025 | Year Ended December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Inventory Turnover Days | 91.8 days | 95.5 days | Decrease | | Trade Receivables Turnover Days | 7.0 days | 4.7 days | Increase | | Trade Payables Turnover Days | 2.2 days | 3.1 days | Decrease | - The decrease in inventory turnover days was primarily due to increased sales in the new retail jewelry business segment, leading to faster inventory circulation[92](index=92&type=chunk) - The increase in trade receivables turnover days and decrease in trade payables turnover days were primarily influenced by the increase in sales of the new retail jewelry business and the nature of its business[92](index=92&type=chunk) [Bank and Other Borrowings](index=44&type=section&id=Bank%20and%20Other%20Borrowings) As of June 30, 2025, bank and other borrowings significantly decreased to RMB 263.5 million from RMB 400.9 million at year-end 2024, resulting in a net cash position with a net debt-to-equity ratio of approximately -25.4% Bank and Other Borrowings (RMB million) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Bank and other borrowings balance | 263.5 | 400.9 | | Net debt-to-equity ratio | -25.4% | -10.3% | - Borrowings are secured by company guarantees, personal guarantees from directors, guarantees from suppliers and independent third parties, and pledges of certain assets[93](index=93&type=chunk) [Pledge of Assets](index=45&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group pledged assets with a total carrying value of approximately RMB 81.6 million as security for bills payable and bank borrowings, including property, plant and equipment, leased land, and pledged bank deposits Pledged Assets (RMB thousand) | Pledged Asset | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Property, plant and equipment | 47,134 | 49,948 | | Leased land (included in right-of-use assets) | 14,938 | 15,155 | | Pledged bank deposits | 19,500 | 39,800 | | **Total** | **81,572** | **104,903** | [Capital Expenditure](index=45&type=section&id=Capital%20Expenditure) In H1 2025, capital expenditure primarily included RMB 1.1 million for vehicle purchases and RMB 79.9 million for leased land and buildings acquired through subsidiaries, totaling approximately RMB 81 million - In H1 2025, the Group's capital expenditure was primarily for the purchase of vehicles of approximately **RMB 1.1 million** and the acquisition of leased land and buildings through the acquisition of subsidiaries of approximately **RMB 79.9 million**[96](index=96&type=chunk) - Capital expenditure was funded by internal financial resources, existing cash, operating surpluses, and bank and other borrowings[96](index=96&type=chunk) [Capital Commitments](index=45&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group's contracted but unprovided capital expenditure was approximately RMB 5.5 million for the acquisition of a non-wholly owned subsidiary - As of June 30, 2025, the Group's contracted but unprovided capital expenditure was approximately **RMB 5.5 million** for the acquisition of a non-wholly owned subsidiary[97](index=97&type=chunk) [Contingent Liabilities](index=45&type=section&id=Contingent%20Liabilities) As of June 30, 2025, and December 31, 2024, the Group had no contingent liabilities - As of June 30, 2025, and December 31, 2024, the Group had **no contingent liabilities**[98](index=98&type=chunk) [Employees](index=46&type=section&id=Employees) As of June 30, 2025, the Group employed 173 staff, with total remuneration of RMB 10.8 million for H1 2025, and compensation arrangements align with current laws, qualifications, and market conditions Employee Information | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of Employees | 173 | 178 | | Total Remuneration (H1 2025) | RMB 10.8 million | RMB 12.4 million (H1 2024) | - The Group's remuneration arrangements are in line with current laws, employee qualifications and experience, and overall market conditions, with bonuses linked to financial performance and individual performance[99](index=99&type=chunk) [Liquidity and Financial Resources](index=46&type=section&id=Liquidity%20and%20Financial%20Resources) In H1 2025, the Group maintained a robust liquidity position, funded primarily by internal resources and bank borrowings, with increases in bank balances and cash, net current assets, and total assets less current liabilities Liquidity and Financial Resources (RMB million) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Bank balances and cash | 633.8 | 526.3 | | Net current assets | 1,253.6 | 1,090.4 | | Total assets less current liabilities | 1,459.4 | 1,220.1 | - The Group is primarily funded by internal resources and bank and other borrowings[100](index=100&type=chunk) [Interim Dividend](index=46&type=section&id=Interim%20Dividend) The Board resolved not to declare an interim dividend for H1 2025, consistent with the prior year - The Board resolved not to declare an interim dividend for H1 2025 (H1 2024: nil)[101](index=101&type=chunk) [Other Information](index=46&type=section&id=Other%20Information) This section covers material investments, significant acquisitions and disposals, post-reporting period events, corporate governance, and other statutory disclosures [Material Investments Held, Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures, and Plans for Future Material Investments or Capital Asset Acquisitions](index=46&type=section&id=Material%20Investments%20Held%2C%20Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures%2C%20and%20Plans%20for%20Future%20Material%20Investments%20or%20Capital%20Asset%20Acquisitions) The Group completed the disposal of 51% equity in Shenzhen Xiansheng Zhanggui Technology Co., Ltd. on January 13, 2025, and a joint acquisition of Jiangxi Yiding Trade Co., Ltd. was completed post-reporting period, with no other material investments or acquisition plans - The Group completed the disposal of a **51%** equity interest in Shenzhen Xiansheng Zhanggui Technology Co., Ltd. (which controls the fresh food retail business) on January 13, 2025[102](index=102&type=chunk) - During the reporting period, a subsidiary of the Group and Everest Gold Group jointly entered into an equity transfer agreement to acquire a portion of the equity interest in Jiangxi Yiding Trade Co., Ltd., with this transaction completed after the reporting period[103](index=103&type=chunk) - Save as disclosed above, as of the date of this announcement, the Group did not hold any material investments, nor did it undertake any material acquisitions or disposals of subsidiaries, associates, and joint ventures, and had no other plans for any material investments or capital asset acquisitions[103](index=103&type=chunk) [Significant Events After Reporting Period](index=47&type=section&id=Significant%20Events%20After%20Reporting%20Period) Post-reporting period, the Group completed the joint acquisition of 55% equity in Jiangxi Yiding Trade Co., Ltd. on July 18, 2025, and entered into subscription agreements for the proposed allotment and issuance of 460 million subscription shares at HKD 0.45 per share, which is ongoing - On July 18, 2025, the Group completed the joint acquisition of a **55%** equity interest in Jiangxi Yiding Trade Co., Ltd., which holds a **100%** equity interest in Huaye Mining Development Co., Ltd. in Xigaze City, Tibet[104](index=104&type=chunk) - On July 14, 2025, the Company entered into subscription agreements with eight subscribers for the proposed allotment and issuance of a total of **460,000,000** subscription shares at **HKD 0.45** per subscription share, and the subscription is ongoing[104](index=104&type=chunk) [Corporate Governance Code](index=48&type=section&id=Corporate%20Governance%20Code) The Company adheres to the Corporate Governance Code in Appendix C1 of the Listing Rules, complying with its provisions in H1 2025, except for the combined roles of Chairman and Chief Executive Officer - The Company has adopted the Corporate Governance Code set out in Appendix C1 to the Listing Rules and has complied with the code provisions during H1 2025[106](index=106&type=chunk) - There is one deviation: the roles of Chairman and Chief Executive Officer are combined and held by Mr. Chen Wantian, and the Board will consider separating these roles at an appropriate time[106](index=106&type=chunk) [Standard Code for Securities Transactions](index=48&type=section&id=Standard%20Code%20for%20Securities%20Transactions) The Company adopted the Standard Code for Securities Transactions by Directors of Listed Issuers in Appendix C3 of the Listing Rules, with all directors confirming compliance during H1 2025 - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 to the Listing Rules[107](index=107&type=chunk) - All Directors, after specific enquiry, confirmed that they have complied with the required standards for dealing in securities as set out in the Standard Code during H1 2025[107](index=107&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=48&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during H1 2025 - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during H1 2025[108](index=108&type=chunk) [Audit Committee](index=49&type=section&id=Audit%20Committee) The Audit Committee reviewed the Group's financial reporting, risk management, internal controls, and the H1 2025 unaudited condensed consolidated financial statements, confirming their compliance with applicable accounting standards, Listing Rules, and legal requirements, with adequate disclosures - The Audit Committee has reviewed the Group's financial reporting process, risk management and internal control systems, and the unaudited condensed consolidated financial statements for H1 2025[109](index=109&type=chunk) - The Audit Committee is of the opinion that the financial statements were prepared in compliance with applicable accounting standards, the Listing Rules, and legal requirements, and that adequate disclosures have been made[109](index=109&type=chunk) [Acknowledgement](index=49&type=section&id=Acknowledgement) The Board extends its gratitude to management and all employees for their hard work and contributions, and to shareholders and customers for their continued support - The Board expresses its gratitude to the management and all staff for their hard work and contributions, and to the shareholders and customers for their continued support to the Group[110](index=110&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=49&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This announcement is published on the Company's and HKEX websites, and the 2025 interim report will be dispatched to shareholders requesting printed copies and published on the same websites in due course - This announcement has been published on the Company's website (www.chinasilver.hk) and the website of Hong Kong Exchanges and Clearing Limited (www.hkexnews.hk)[111](index=111&type=chunk) - The Company's 2025 interim report will be dispatched to shareholders who request printed copies and published on the same websites in due course[111](index=111&type=chunk)