[Financial and Operational Summary](index=1&type=section&id=Financial%20and%20Operational%20Summary) [Financial Summary for the Six Months Ended June 30](index=1&type=section&id=截至六月三十日止六個月財務概要) Revenue decreased by 1.9% to RMB 443.9 million, resulting in a loss attributable to owners of the parent of RMB 40.6 million, with basic loss per share at RMB 1.26 cents and operating cash outflow increasing by 25.9% **Financial Summary for the Six Months Ended June 30 (RMB millions):** | Indicator | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | 443.9 | 452.4 | -1.9% | | Loss / (Profit) attributable to owners of the parent | (40.6) | 8.2 | N/A | | Basic Loss / (Earnings) per share (RMB cents) | (1.26) | 0.25 | N/A | | Interim dividend per share (HK cents) | – | – | N/A | | Net cash flow (used in) / from operating activities | (188.3) | (149.5) | +25.9% | - The company shifted from a profit of **RMB 8.2 million** in the prior period to a loss of **RMB 40.6 million** in the current period[2](index=2&type=chunk) [Operational Summary for the Six Months Ended June 30](index=1&type=section&id=截至六月三十日止六個月營運概要) Total assets slightly increased, but inventory and accounts receivable turnover days rose, indicating potential operational efficiency decline, while accounts payable turnover days decreased **Operational Summary for the Six Months Ended June 30 (RMB millions/days):** | Indicator | H1 2025 | FY 2024 | H1 2024 | | :--- | :--- | :--- | :--- | | Total assets | 2,843.6 | 2,829.2 | 2,996.1 | | Inventory turnover days – Raw materials | 79.3 | 61.1 | 60.6 | | Inventory turnover days – Finished goods and work-in-progress | 322.4 | 223.4 | 232.9 | | Accounts receivable turnover days | 63.2 | 61.3 | 66.4 | | Accounts payable turnover days | 62.4 | 67.0 | 62.3 | - Inventory turnover days (raw materials and finished goods) and accounts receivable turnover days both increased, indicating a potential decline in operational efficiency[2](index=2&type=chunk) [Condensed Consolidated Financial Statements](index=2&type=section&id=簡明綜合財務報表) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=簡明綜合損益及其他全面收益表) Revenue declined by 1.9% and gross profit by 34.5%, shifting the company from profit to a **RMB 40.586 million** loss attributable to owners of the parent, exacerbated by increased income tax expense **Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30, RMB thousands):** | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 443,914 | 452,357 | | Cost of sales | (392,193) | (373,334) | | Gross profit | 51,721 | 79,023 | | Other income and gains, net | 14,525 | 31,862 | | Selling and distribution expenses | (14,961) | (18,579) | | Administrative expenses | (65,862) | (59,640) | | Finance costs | (2,548) | (3,713) | | Profit / (Loss) before tax | (21,074) | 18,703 | | Income tax expense | (18,012) | (9,724) | | Profit / (Loss) for the period | (39,086) | 8,979 | | Profit / (Loss) attributable to owners of the parent | (40,586) | 8,231 | | Profit / (Loss) attributable to non-controlling interests | 1,500 | 748 | | Basic Earnings / (Loss) per share (RMB cents) | (1.26) | 0.25 | - Profit for the period shifted from **RMB 8,979 thousand** in the prior period to a loss of **RMB 39,086 thousand** in 2025, primarily due to a significant decrease in gross profit and increased income tax expense[4](index=4&type=chunk) [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=簡明綜合財務狀況報表) Total assets slightly decreased, driven by reduced fixed deposits and increased interest-bearing bank borrowings and dividends payable, resulting in lower net current assets and net assets **Condensed Consolidated Statement of Financial Position (As at June 30, 2025, RMB thousands):** | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Non-current assets** | | | | Property, plant and equipment | 906,204 | 977,416 | | Investment properties | 78,322 | 30,828 | | Fixed deposits | 10,000 | 114,000 | | Total non-current assets | 1,162,005 | 1,289,642 | | **Current assets** | | | | Inventories | 912,803 | 813,976 | | Accounts receivable and bills receivable | 148,544 | 158,838 | | Cash and cash equivalents | 558,602 | 503,804 | | Total current assets | 1,681,619 | 1,539,538 | | **Current liabilities** | | | | Accounts payable and bills payable | 51,270 | 111,160 | | Interest-bearing bank borrowings | 410,295 | 240,285 | | Dividends payable | 117,842 | – | | Total current liabilities | 672,050 | 508,356 | | Net current assets | 1,009,569 | 1,031,182 | | Net assets | 2,133,017 | 2,292,691 | - Fixed deposits within non-current assets significantly decreased from **RMB 114,000 thousand** at the end of 2024 to **RMB 10,000 thousand** as of June 30, 2025[6](index=6&type=chunk) - Interest-bearing bank borrowings in current liabilities increased from **RMB 240,285 thousand** at the end of 2024 to **RMB 410,295 thousand** as of June 30, 2025, and dividends payable increased from zero to **RMB 117,842 thousand**[6](index=6&type=chunk) [Notes to the Condensed Interim Financial Information](index=6&type=section&id=簡明中期財務資料附註) [1. Company Information](index=6&type=section&id=1.%20公司資料) The company, registered in the Cayman Islands, primarily manufactures and sells edible collagen casings, collagen food, skincare, and medical biomaterials - The company's main business encompasses the manufacturing and sale of edible collagen casings, collagen food, skincare products, and high-molecular collagen medical biomaterials[8](index=8&type=chunk) [2.1 Basis of Preparation and Accounting Policies](index=6&type=section&id=2.1%20編製基準及會計政策) Interim financial information is prepared under HKAS 34 'Interim Financial Reporting' and should be read with the 2024 annual consolidated financial statements - Interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting'[9](index=9&type=chunk) [2.2 Changes in Accounting Policies](index=6&type=section&id=2.2%20會計政策變動) The company adopted HKAS 21 (Revised) 'Lack of Exchangeability', which had no impact on interim financial information due to currency convertibility - The company first adopted HKAS 21 (Revised) 'Lack of Exchangeability', but it had no impact on the financial information[10](index=10&type=chunk) [3. Operating Segment Information](index=7&type=section&id=3.%20經營分部資料) Edible collagen casings generate over 90% of revenue, primarily from mainland China, where most non-current assets are located, and a new major customer emerged - Edible collagen casing products contributed over **90%** of the Group's revenue[11](index=11&type=chunk) **Revenue from External Customers (For the six months ended June 30, RMB thousands):** | Region | 2025 | 2024 | | :--- | :--- | :--- | | Mainland China | 387,600 | 380,261 | | Asia (excluding Mainland China) | 36,246 | 48,162 | | Other countries / regions | 20,068 | 23,934 | | Total | 443,914 | 452,357 | - As of June 30, 2025, a major customer accounted for over **10%** of the Group's revenue, contributing **RMB 49,431 thousand**[14](index=14&type=chunk) [4. Revenue](index=8&type=section&id=4.%20收入) Total revenue decreased by 1.9% to **RMB 443.914 million**, with 99.99% derived from goods transferred at a point in time **Revenue Breakdown (For the six months ended June 30, RMB thousands):** | Revenue Source | 2025 | 2024 | | :--- | :--- | :--- | | Goods transferred at a point in time | 443,885 | 452,323 | | Services transferred over time | 29 | 34 | | Total | 443,914 | 452,357 | [5. Other Income and Gains, Net](index=8&type=section&id=5.%20其他收入及收益，淨額) Other income and gains, net, significantly decreased by **54.4%** to **RMB 14.525 million**, mainly due to reduced bank interest, government grants, and auxiliary material sales **Analysis of Other Income and Gains, Net (For the six months ended June 30, RMB thousands):** | Item | 2025 | 2024 | | :--- | :--- | :--- | | Bank interest income | 7,602 | 17,156 | | Government grants | 1,826 | 4,887 | | Sales of auxiliary materials | 1,930 | 3,596 | | Total | 14,525 | 31,862 | - Other income and gains, net, decreased by **54.4%** year-on-year, primarily due to reduced bank interest income and government grants[16](index=16&type=chunk) [6. Finance Costs](index=8&type=section&id=6.%20融資成本) Finance costs decreased by **31.4%** to **RMB 2.548 million**, primarily driven by lower bank loan interest **Finance Costs (For the six months ended June 30, RMB thousands):** | Item | 2025 | 2024 | | :--- | :--- | :--- | | Interest on bank loans | 2,387 | 3,627 | | Interest on lease liabilities | 161 | 86 | | Total | 2,548 | 3,713 | [7. Profit / (Loss) Before Tax](index=9&type=section&id=7.%20除稅前盈利╱（虧損）) The company shifted from pre-tax profit to a **RMB 21.074 million** loss, impacted by lower gross profit, increased inventory provisions, and fair value losses **Profit / (Loss) Before Tax after deducting / (crediting) items (For the six months ended June 30, RMB thousands):** | Item | 2025 | 2024 | | :--- | :--- | :--- | | Cost of inventories sold | 335,472 | 334,283 | | Depreciation of property, plant and equipment | 37,842 | 35,150 | | Provision for obsolete and slow-moving inventories | 22,622 | 2,775 | | Impairment of accounts receivable and bills receivable | 3,027 | 6,395 | | Fair value loss / (gain) on investment properties, net | 258 | (574) | - Profit before tax shifted from **RMB 18,703 thousand** in the prior period to a loss of **RMB 21,074 thousand** in 2025[4](index=4&type=chunk) - Provision for obsolete and slow-moving inventories significantly increased from **RMB 2,775 thousand** in 2024 to **RMB 22,622 thousand** in 2025[18](index=18&type=chunk) [8. Income Tax Expense](index=9&type=section&id=8.%20所得稅開支) Income tax expense significantly increased by **85.2%** to **RMB 18.012 million**, mainly due to financial planning adjustments between China and Hong Kong entities, resulting in dividend withholding tax **Income Tax Expense (For the six months ended June 30, RMB thousands):** | Item | 2025 | 2024 | | :--- | :--- | :--- | | Current – China | 10,712 | 12,865 | | Current – Hong Kong | 647 | 406 | | Deferred tax | 6,653 | (3,547) | | Total tax expense for the period | 18,012 | 9,724 | - Income tax expense increased from **RMB 9,724 thousand** in the prior period to **RMB 18,012 thousand** in 2025, an increase of **85.2%**[21](index=21&type=chunk) - The increase in income tax expense is primarily due to overall financial planning adjustments between the Group's companies in China and Hong Kong, resulting in dividend withholding tax expenses and provisions[48](index=48&type=chunk) [9. Dividends](index=10&type=section&id=9.%20股息) The company declared and paid **RMB 118.328 million** in 2024 final and special dividends, but the Board does not recommend an interim dividend for this period **Dividends Declared and Paid (For the six months ended June 30, RMB thousands):** | Item | 2025 | 2024 | | :--- | :--- | :--- | | Final dividend declared and paid for 2024 | 59,164 | 58,725 | | Special dividend declared and paid for 2024 | 59,164 | 58,725 | | Total | 118,328 | 117,450 | - The Board does not recommend paying any interim dividend for this reporting period[22](index=22&type=chunk) [10. Earnings / (Loss) Per Share Attributable to Owners of the Parent](index=11&type=section&id=10.%20母公司普通股權益持有人應佔每股盈利╱（虧損）) Basic loss per share attributable to owners of the parent was **RMB 1.26 cents**, a shift from **RMB 0.25 cents** profit in the prior period, with no dilutive shares **Earnings / (Loss) Per Share Attributable to Owners of the Parent (For the six months ended June 30, RMB cents per share):** | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Basic and diluted | (1.26) | 0.25 | - Basic earnings per share shifted from a profit of **RMB 0.25 cents** in the prior period to a loss of **RMB 1.26 cents** in the current period[23](index=23&type=chunk) [11. Accounts Receivable and Bills Receivable](index=11&type=section&id=11.%20應收賬款及應收票據) Total accounts receivable and bills receivable slightly decreased to **RMB 148.544 million**, with the majority aged within three months **Aging Analysis of Accounts Receivable and Bills Receivable (As at June 30, RMB thousands):** | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 1 month | 48,496 | 72,326 | | 1 to 3 months | 47,038 | 43,777 | | 3 to 6 months | 44,576 | 33,653 | | 6 months to 1 year | 4,807 | 3,618 | | Over 1 year | 3,627 | 5,464 | | Total | 148,544 | 158,838 | [12. Accounts Payable and Bills Payable](index=11&type=section&id=12.%20應付賬款及應付票據) Total accounts payable and bills payable significantly decreased by **53.9%** to **RMB 51.270 million**, with the largest portion due within one month **Aging Analysis of Accounts Payable and Bills Payable (As at June 30, RMB thousands):** | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 1 month | 35,594 | 38,257 | | 1 to 2 months | 499 | 12,168 | | 2 to 3 months | 1,162 | 9,753 | | 3 to 6 months | 6,002 | 41,396 | | Over 6 months | 8,013 | 9,586 | | Total | 51,270 | 111,160 | - Total accounts payable and bills payable significantly decreased by **53.9%** from **RMB 111,160 thousand** at the end of 2024 to **RMB 51,270 thousand** as of June 30, 2025[25](index=25&type=chunk) [13. Share Capital](index=12&type=section&id=13.%20股本) Authorized share capital remained at **HKD 200,000 thousand**, with issued and fully paid share capital at **HKD 32,305 thousand** (equivalent to **RMB 27,807 thousand**), consistent with 2024 year-end **Share Capital (As at June 30, RMB thousands):** | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Authorized share capital (20,000,000,000 ordinary shares of HKD 0.01 each) | 200,000 (HKD) | 200,000 (HKD) | | Issued and fully paid share capital (3,230,480,000 ordinary shares of HKD 0.01 each) | 32,305 (HKD) | 32,305 (HKD) | | Equivalent (RMB thousands) | 27,807 | 27,807 | [Management Discussion and Analysis](index=13&type=section&id=管理層討論及分析) [Market Review](index=13&type=section&id=市場回顧) China's GDP grew by **5.3%** in H1 2025, with future policies expected to boost domestic consumption and drive collagen casing market growth - China's GDP grew by **5.3%** year-on-year in the first half of 2025, with the national economy maintaining overall resilience[27](index=27&type=chunk) - Future policies are expected to further unleash domestic consumption potential, driving sustained growth in China's collagen casing market demand[27](index=27&type=chunk) [Business Review](index=13&type=section&id=業務回顧) The Group focused on quality and high-end products, expanding into food, skincare, and medical biomaterials, with the latter showing exceptional performance in R&D and approvals - The Group's core guiding principle is "strengthening standard management and solidifying new product quality," with a focus on increasing the proportion of high-end casing products, accounting for approximately **40%** of first-half sales volume[28](index=28&type=chunk) - The Group is intensifying market development efforts in new business areas such as collagen food, skincare products, and high-molecular collagen medical biomaterials[28](index=28&type=chunk) [Collagen Casings](index=14&type=section&id=膠原蛋白腸衣) New collagen casing products gained significant market acceptance, production efficiency improved through innovation, and raw material sourcing and cost management were enhanced - Market acceptance for the six new series of collagen casing products significantly improved after market promotion[29](index=29&type=chunk) - Production processes were optimized through technological innovation, equipment upgrades, and resource investment, enhancing production efficiency[29](index=29&type=chunk) - Raw material import channels were expanded, and domestic acquisition points increased to ensure stable supply, while standardized management of equipment and spare parts was implemented to reduce costs[29](index=29&type=chunk) [High-Molecular Collagen Medical Biomaterials, Collagen Food and Skincare Products](index=14&type=section&id=高分子膠原蛋白醫用生物材料、膠原蛋白食品及膠原蛋白護膚品) Non-casing business sales grew by **93%**, led by high-molecular collagen medical biomaterials with strong performance and progress in medical device approvals, exceeding FDA standards - Sales of business segments other than collagen casings increased by approximately **93%** year-on-year, with high-molecular collagen medical biomaterials performing exceptionally well[30](index=30&type=chunk) - The endotoxin content of medical collagen raw materials is only **0.01EU/ml**, superior to the US FDA standard of **0.5EU/ml**[30](index=30&type=chunk) - Documentation for the "Collagen Bone Graft Material (Artificial Bone)" Class III medical device product license approval is being finalized, and clinical trials for "Dental Medical Collagen Sponge" have been completed, with plans to enter the application process in the second half of the year[30](index=30&type=chunk) [Group Accolades](index=14&type=section&id=集團榮譽) The 'Shenguan' brand was recognized among China's Top 500 Most Valuable Brands, maintaining its research center status, holding **116 patents**, and collaborating on research with universities - The "Shenguan" brand was evaluated by the World Brand Lab as one of China's Top 500 Most Valuable Brands in 2025[31](index=31&type=chunk) **Group Patent Status (As at June 30, 2025):** | Patent Authority | Total Granted | In Force | Pending | | :--- | :--- | :--- | :--- | | China National Intellectual Property Administration | 108 | 71 | 22 | | Taiwan Intellectual Property Office, Ministry of Economic Affairs | 2 | 2 | – | | United States Patent and Trademark Office | 1 | 1 | – | | Intellectual Property Office of Singapore | 2 | 2 | – | | Intellectual Property Department, Ministry of Commerce, Cambodia | 1 | 1 | – | | Directorate General of Intellectual Property, Indonesia | 1 | 1 | – | | Intellectual Property Corporation of Malaysia | 1 | 1 | – | | Total | 116 | 79 | 22 | - The Group collaborates closely with Huazhong University of Science and Technology, publishing research articles in *Advanced Science* and *BioDesign Research* journals, with six co-developed patents authorized or pending[32](index=32&type=chunk)[33](index=33&type=chunk) [Quality Control](index=16&type=section&id=質量控制) Strict quality control, multiple ISO and FDA certifications enable global exports, while a subsidiary's extensive testing capabilities support high-end collagen raw material development - Collagen casing production is certified with multiple management systems including ISO9001, ISO22000, ISO10012, ISO45001, and ISO14001, and has obtained US FDA registration, allowing products to be exported to Southeast Asia, Europe, and the United States[34](index=34&type=chunk) - Subsidiary Wuzhou Zhongguan Testing Technology Service Co., Ltd. possesses over **800** physicochemical indicator testing capabilities and provides third-party impartial testing services, which helps the Group develop a high-end collagen raw material base[35](index=35&type=chunk) [Customer Relationships](index=16&type=section&id=客戶關係) The Group maintains strong, long-term relationships with domestic and international partners, ensuring a stable customer base and continuous new client acquisition - The Group maintains close relationships with leading meat product processing and sausage manufacturers in China and various overseas markets including Southeast Asia, South America, and the United States[36](index=36&type=chunk) - The Group continuously attracts new customers while maintaining its existing customer base, achieving good results[36](index=36&type=chunk) [Raw Material Supply](index=16&type=section&id=原料供應) Bovine inner hide supply has been stable since H2 2024, significantly improving from prior years, with the main supplier holding a food production license - The supply of bovine inner hide, the main raw material for collagen casings, has remained stable since the second half of 2024, showing significant improvement compared to the previous two years[37](index=37&type=chunk) - The main supplier, Guangxi Zhiguan Industrial Development Co., Ltd., has obtained a food production license valid until October 2027[38](index=38&type=chunk) [Financial Analysis](index=17&type=section&id=財務分析) Revenue decreased by 1.9% and gross profit by 34.5%, leading to a **RMB 40.6 million** loss attributable to owners of the parent, impacted by weak consumer confidence, inventory write-downs, and increased tax expense - Revenue decreased by **1.9%** to **RMB 443.9 million**, primarily due to weakened demand in the meat market caused by insufficient consumer confidence[39](index=39&type=chunk) - Gross profit decreased by **34.5%** to **RMB 51.7 million**, with the gross profit margin falling from **17.5%** to **11.7%**, mainly due to inventory write-downs and preferential sales policies for old process products[41](index=41&type=chunk) - Loss attributable to owners of the parent was approximately **RMB 40.6 million**, a reversal from a profit of approximately **RMB 8.2 million** in the prior period[50](index=50&type=chunk) [Revenue](index=17&type=section&id=收入) Revenue decreased by **1.9%** to **RMB 443.9 million**, primarily due to weakened market demand for meat products amid insufficient consumer confidence **Revenue (RMB millions):** | Period | Amount | | :--- | :--- | | Current period | 443.9 | | Prior period | 452.4 | | Change | -1.9% | [Cost of Sales](index=17&type=section&id=銷售成本) Cost of sales increased by **5.1%** to **RMB 392.2 million**, driven by a **312.5%** surge in inventory write-downs and provisions, despite slight reductions in raw material and energy costs **Cost of Sales Composition (RMB millions):** | Item | Current Period | Prior Period | Change | | :--- | :--- | :--- | :--- | | Total cost of sales | 392.2 | 373.3 | +5.1% | | Inventory write-downs and provisions | 23.1 | 5.6 | +312.5% | | Raw material costs | 163.1 | 164.7 | -1.0% | | Energy expenses | 76.2 | 76.4 | -0.2% | | Direct labor costs | 78.7 | 75.5 | +4.2% | - Inventory write-downs and provisions significantly increased from **RMB 5.6 million** in the prior period to **RMB 23.1 million** in the current period, which is the main reason for the increase in cost of sales[40](index=40&type=chunk) [Gross Profit](index=17&type=section&id=毛利) Gross profit decreased by **34.5%** to **RMB 51.7 million**, with gross profit margin falling from **17.5%** to **11.7%**, primarily due to inventory write-downs and promotional sales **Gross Profit and Gross Profit Margin (RMB millions):** | Indicator | Current Period | Prior Period | Change | | :--- | :--- | :--- | :--- | | Gross profit | 51.7 | 79.0 | -34.5% | | Gross profit margin | 11.7% | 17.5% | -5.8 percentage points | | Gross profit margin after deducting inventory write-downs and provisions | 16.8% | 18.7% | -1.9 percentage points | - The decrease in gross profit margin is primarily due to increased inventory write-downs and provisions, as well as preferential policies implemented to accelerate sales of old process products[41](index=41&type=chunk) [Other Income and Gains](index=18&type=section&id=其他收入及收益) Other income and gains decreased by **54.4%** to **RMB 14.5 million** **Other Income and Gains (RMB millions):** | Period | Amount | | :--- | :--- | | Current period | 14.5 | | Prior period | 31.9 | | Change | -54.4% | [Selling and Distribution Expenses](index=18&type=section&id=銷售及分銷開支) Selling and distribution expenses decreased by **19.5%** to **RMB 15.0 million**, with its revenue ratio falling from **4.1%** to **3.4%** **Selling and Distribution Expenses (RMB millions):** | Period | Amount | | :--- | :--- | | Current period | 15.0 | | Prior period | 18.6 | | Change | -19.5% | [Administrative Expenses](index=18&type=section&id=行政開支) Administrative expenses increased by **10.4%** to **RMB 65.9 million**, primarily due to higher staff costs and a **RMB 2.9 million** revaluation loss on investment properties **Administrative Expenses (RMB millions):** | Period | Amount | | :--- | :--- | | Current period | 65.9 | | Prior period | 59.6 | | Change | +10.4% | - The increase in administrative expenses is mainly due to higher employee remuneration and benefits expenses, and a revaluation loss of approximately **RMB 2.9 million** on investment properties[44](index=44&type=chunk) [Finance Costs](index=18&type=section&id=融資成本) Finance costs decreased by **31.4%** to **RMB 2.5 million** **Finance Costs (RMB millions):** | Period | Amount | | :--- | :--- | | Current period | 2.5 | | Prior period | 3.7 | | Change | -31.4% | [Share of Loss of an Associate](index=18&type=section&id=分佔一間聯營公司之虧損) The Group no longer shared losses from an associate in the current period, as its net investment had been reduced to zero by prior losses and impairment **Share of Loss of an Associate (RMB thousands):** | Period | Amount | | :--- | :--- | | Current period | – | | Prior period | (287) | [Impairment of Accounts Receivable and Bills Receivable](index=18&type=section&id=應收賬款及應收票據減值) Impairment of accounts receivable and bills receivable decreased to **RMB 3.0 million** from **RMB 6.4 million** in the prior period **Impairment of Accounts Receivable and Bills Receivable (RMB millions):** | Period | Amount | | :--- | :--- | | Current period | 3.0 | | Prior period | 6.4 | [Income Tax Expense](index=19&type=section&id=所得稅開支) Income tax expense significantly increased to **RMB 18.0 million** from **RMB 9.7 million**, primarily due to financial planning adjustments between China and Hong Kong entities, leading to dividend withholding tax **Income Tax Expense (RMB millions):** | Period | Amount | | :--- | :--- | | Current period | 18.0 | | Prior period | 9.7 | - Income tax expense significantly increased, primarily due to overall financial planning adjustments between the Group's companies in China and Hong Kong, resulting in dividend withholding tax expenses and provisions[48](index=48&type=chunk) [Profit Attributable to Non-Controlling Interests](index=19&type=section&id=非控股權益應佔盈利) Profit attributable to non-controlling interests increased to **RMB 1.5 million**, representing the aggregate profit from non-wholly owned subsidiaries **Profit Attributable to Non-Controlling Interests (RMB millions):** | Period | Amount | | :--- | :--- | | Current period | 1.5 | | Prior period | 0.7 | [Loss Attributable to Owners of the Parent](index=19&type=section&id=母公司擁有人應佔虧損) The Group reported a loss attributable to owners of the parent of **RMB 40.6 million**, a reversal from a **RMB 8.2 million** profit in the prior period **Loss Attributable to Owners of the Parent (RMB millions):** | Period | Amount | | :--- | :--- | | Current period | (40.6) | | Prior period | 8.2 | [Liquidity and Capital Resources](index=19&type=section&id=流動資金及資本資源) Cash and equivalents, net of dividends, decreased to **RMB 477.1 million**, while bank borrowings rose to **RMB 410.3 million**, increasing the debt-to-equity ratio to **19.7%**; operating cash outflow was **RMB 188.3 million**, with future capital commitments of **RMB 130.2 million** - As of June 30, 2025, cash and cash equivalents, together with pledged and fixed deposits, amounted to approximately **RMB 595.0 million**, or **RMB 477.1 million** after deducting dividends, a decrease of approximately **RMB 169.2 million** from the end of 2024[51](index=51&type=chunk) - Total bank borrowings increased to approximately **RMB 410.3 million**, all repayable within one year[52](index=52&type=chunk) - The net cash position (after deducting dividends) was **RMB 66.8 million**, a decrease of approximately **RMB 339.2 million** from the end of 2024; the debt-to-equity ratio increased to **19.7%** (December 31, 2024: **10.8%**)[53](index=53&type=chunk) [Cash and Bank Borrowings](index=19&type=section&id=現金及銀行借貸) Cash and equivalents, net of dividends, decreased to **RMB 477.1 million**, while bank borrowings rose to **RMB 410.3 million**, increasing the debt-to-equity ratio to **19.7%** **Cash and Bank Borrowings Overview (RMB millions):** | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents together with pledged and fixed deposits | 595.0 | 646.3 | | Cash and cash equivalents together with pledged and fixed deposits after deducting dividends | 477.1 | – | | Total bank borrowings | 410.3 | 240.3 | | Net cash position (after deducting dividends) | 66.8 | 406.0 | | Debt-to-equity ratio | 19.7% | 10.8% | [Cash Flows](index=20&type=section&id=現金流量) Net cash outflow from operating activities was **RMB 188.3 million**, primarily due to increased inventory and reduced accounts payable, offset by inflows from investing and financing activities **Cash Flows (For the six months ended June 30, RMB millions):** | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash outflow from operating activities | (188.3) | (149.5) | | Net cash inflow from investing activities | 57.6 | – | | Net cash inflow from financing activities | 164.9 | – | - Net cash outflow from operating activities increased by **25.9%**, mainly due to increased inventory and decreased accounts payable[54](index=54&type=chunk) [Exposure to Exchange Rate Risk](index=20&type=section&id=承受匯兌風險) Operating primarily in China with RMB-denominated transactions, the Group has no formal hedging policy, as the Board anticipates no significant impact from future currency fluctuations - The Group primarily settles transactions in Renminbi and has not adopted a formal hedging policy, as the Board believes future currency fluctuations will not have a significant impact on operations[55](index=55&type=chunk) [Capital Expenditure](index=21&type=section&id=資本開支) Capital expenditure was **RMB 17.3 million**, with future commitments of **RMB 130.2 million** for capacity expansion and equipment upgrades, including **RMB 100.0 million** estimated for 2025 **Capital Expenditure and Commitments (RMB millions):** | Item | Amount | | :--- | :--- | | Capital expenditure for the current period | 17.3 | | Capital commitments as of June 30, 2025 | 130.2 | | Estimated capital expenditure for 2025 | 100.0 | - Future capital commitments are primarily related to expanding, improving, and upgrading production equipment, particularly for the renovation of high-quality collagen casing production lines[56](index=56&type=chunk) [Pledge of Assets](index=21&type=section&id=資產抵押) Pledged bank deposits totaled **RMB 26.4 million** as of June 30, 2025 **Pledged Bank Deposits (RMB millions):** | Date | Amount | | :--- | :--- | | June 30, 2025 | 26.4 | [Contingent Liabilities](index=21&type=section&id=或然負債) The Group had no significant contingent liabilities as of June 30, 2025 - The Group had no significant contingent liabilities as of the end of the reporting period[58](index=58&type=chunk) [Material Investments, Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=21&type=section&id=重大投資、重大收購及出售附屬公司、聯營公司及合營企業) No significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures occurred during the period - No material investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures occurred during the reporting period[59](index=59&type=chunk) [Events After the Reporting Period](index=21&type=section&id=本期間後事項) No significant post-reporting period events affecting the Group have occurred as of this announcement date - No significant events affecting the Group have occurred subsequent to the reporting period as of the date of this announcement[60](index=60&type=chunk) [Human Resources](index=21&type=section&id=人力資源) The Group had **3,010** employees with **RMB 134.7 million** in staff costs, focusing on automation to mitigate rising labor expenses **Human Resources Overview (RMB millions):** | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Number of contracted employees | 3,010 | 2,730 | | Total remuneration and employee benefits expenses | 134.7 | 124.0 | - The Group is committed to enhancing automated production to offset continuously rising labor costs[61](index=61&type=chunk) [Outlook](index=22&type=section&id=展望) [Macroeconomic Outlook](index=22&type=section&id=宏觀經濟展望) China's government will continue implementing policies to stabilize employment, boost consumption, and expand emerging industry investment, aiming to unleash domestic demand potential - The country will continue to promote policies to stabilize employment, boost consumption, and expand investment in emerging industries to unleash domestic demand potential[62](index=62&type=chunk) [Collagen Casing Business Outlook](index=22&type=section&id=膠原蛋白腸衣業務展望) The Group will focus on standardizing collagen casing production, enhancing new product applicability, improving efficiency, resolving bottlenecks, and strengthening market expansion efforts - Key work for the second half of the year includes strengthening standardized production management and enhancing the applicability of the six new series of products[63](index=63&type=chunk) - The Group will advance improvements in the production environment, site environment, and equipment environment to enhance production efficiency and product quality[63](index=63&type=chunk) - The Group plans to improve collagen casing production support capabilities, resolve production bottlenecks, and conduct training for market marketing and technical service teams to continuously expand the market[63](index=63&type=chunk) [High-Molecular Collagen Medical Biomaterials Industry Outlook](index=23&type=section&id=高分子膠原蛋白醫用生物材料產業展望) The Group will boost medical collagen raw material sales, expedite Class III medical device approvals for 'artificial bone' and 'oral collagen sponge,' and advance other biomaterial R&D - The Group will continue to promote the production and sales of medical collagen raw materials to enhance performance[64](index=64&type=chunk) - Efforts will be made to accelerate the finalization of supplementary materials required for "artificial bone" approval and to compile post-clinical data for "oral medical collagen sponge" in preparation for application[65](index=65&type=chunk)[66](index=66&type=chunk) - The Group will continue to advance the research and development and preclinical preparation for other high-molecular collagen medical biomaterials[67](index=67&type=chunk) [Collagen Food Industry Outlook](index=23&type=section&id=膠原蛋白食品產業展望) The Group will innovate high-molecular collagen food applications, expand marketing for 'Niu Xiaojin' and 'Boboji,' and adjust strategies via in-store and online channels to boost performance - The Group will expand marketing and promotion for products such as "Niu Xiaojin" and "Boboji"[67](index=67&type=chunk) - Marketing strategies will be adjusted, and the marketing team expanded, utilizing in-store experiences and online live streaming to strive for better performance[67](index=67&type=chunk) [Collagen Skincare Products Industry Outlook](index=23&type=section&id=膠原蛋白護膚品產業展望) The Group will research high-molecular collagen in skincare, develop new products, expand brands like 'Luxianna,' and enhance advertising and sales planning for dual online and offline sales - The Group will continue to research and develop new daily skincare and washing products, expanding the product chain for brands such as "Luxianna," "Gaojile," "Collagen Family," and "Guangcaidunsheng"[68](index=68&type=chunk) - Advertising and sales planning will be strengthened to fully promote both online (e-commerce, WeChat commerce) and offline sales[68](index=68&type=chunk) [Overall Group Strategy](index=23&type=section&id=集團整體戰略) The Group aims to accelerate Shenguan's health industry development, expand collagen technology applications, launch more products, and enhance shareholder returns - The Group's team will continue to strive to accelerate the development of Shenguan's grand health industry and further expand the technological application of collagen[68](index=68&type=chunk) - The Group will develop and launch more collagen industry chain products to the market, providing better investment returns for shareholders[68](index=68&type=chunk) [Other Information](index=24&type=section&id=其他資料) [Share Option Scheme](index=24&type=section&id=購股權計劃) The employee stock option scheme, adopted in 2020 and revised in 2024, aims to attract and retain talent, with a 10% share cap and approximately 5 years remaining; no options were transacted this period - The share option scheme aims to attract and retain qualified individuals and promote the Group's business development[69](index=69&type=chunk) - The scheme has a ten-year validity, with approximately **5 years** remaining as of June 30, 2025[69](index=69&type=chunk) - Under the scheme, the total number of shares that can be issued is capped at **10%** of the issued shares on the adoption date (**323,048,000 shares**)[72](index=72&type=chunk) [Payment of Interim Dividend](index=25&type=section&id=派付中期股息) The Board does not recommend an interim dividend for this period, prioritizing future capital expenditures and market expansion needs - The Board does not recommend paying an interim dividend for this reporting period, to support future capital expenditures and market expansion[75](index=75&type=chunk) [Purchase, Redemption or Sale of the Company's Listed Securities](index=25&type=section&id=購買、贖回或出售本公司的上市證券) Neither the company nor its subsidiaries purchased, redeemed, or sold any of the company's listed securities during the period - During the reporting period, neither the company nor any of its subsidiaries purchased, redeemed, or sold any of the company's listed securities[76](index=76&type=chunk) [Corporate Governance Code](index=25&type=section&id=企業管治守則) The company complied with corporate governance codes, except for the combined Chairman and CEO roles, which the Board is reviewing, while the Chairman ensures board effectiveness and shareholder communication - The company did not comply with code provision C.2.1 (separation of Chairman and Chief Executive Officer roles), but the Board believes the current structure fosters strong leadership[77](index=77&type=chunk) - The company will continue to consider the feasibility of appointing a separate Chief Executive Officer[78](index=78&type=chunk) - The Chairman's responsibilities include ensuring the Board acts in the company's best interests, maintaining effective communication with shareholders, and leading the Board's effective operation[79](index=79&type=chunk)[81](index=81&type=chunk) [Model Code for Securities Transactions](index=26&type=section&id=上市規則標準守則) The company adopted the Listing Rules' Model Code for securities transactions, with all directors confirming compliance and no known breaches by senior management - The company has adopted the Model Code set out in Appendix C3 of the Listing Rules, and all directors confirmed compliance during the reporting period[80](index=80&type=chunk) [Audit Committee](index=27&type=section&id=審核委員會) The Audit Committee, comprising three independent non-executive directors with a professionally qualified Chairman, reviewed and approved the interim results, confirming compliance with standards - The Audit Committee comprises three independent non-executive directors, with Mr. Xu Rongguo, the Chairman, possessing professional accounting qualifications[82](index=82&type=chunk) - The Committee has reviewed and approved the Group's unaudited condensed consolidated interim results, deeming them compliant with all applicable accounting standards and Listing Rules[82](index=82&type=chunk) [Board of Directors](index=27&type=section&id=承董事會命) [Board Members](index=27&type=section&id=董事會成員) The Board comprises four executive directors, one non-executive director, and three independent non-executive directors, including the Chairman - The Board of Directors includes four executive directors, one non-executive director, and three independent non-executive directors[83](index=83&type=chunk)

神冠控股(00829)盈警后跌超16%，截至发稿，跌16.13%，报0.26港元，成交额673.67万港元。 2)投资物业录得税后估值亏损共约人民币300万元。3)其余税后亏损主要由于集团在中华人民共和国及 香港的公司之间整体财务规划的调整。其中一间集团内香港公司已经及计划将向另外一间集团内中国公 司偿还一部分计息的贷款，香港子公司的还款资金来自其其中一家中国子公司已经及计划支付的股息， 从而产生中国股息抵扣税的支出及拨备。 本文源自：智通财经网 消息面上，神冠控股发布公告，预期集团于截至2025年6月30日止6个月录得母公司拥有人应占亏损约人 民币3500万元至人民币4300万元，截至2024年6月30日止6个月则录得母公司拥有人应占溢利约人民币 820万元。 公告称，董事会认为，以下为对本期间业绩不利的主要因素：1)总体营商环境仍然困难，集团销售收入 因此下降。此外，存货撇销及拨备上升主要是由于集团于过去年度为研发新产品及扩大生产能力而进行 大规模的产品试制和设备改造，这些和新产品试制有关的成品库存至今仍有待市场消化。日常经营业务 录得税后亏损约人民币1700万元至人民币2500万元。 ...

Core Viewpoint - Shen Guan Holdings (00829) issued a profit warning, expecting a loss of approximately RMB 35 million to RMB 43 million for the six months ending June 30, 2025, leading to a stock price drop of over 16% [1] Group 1: Financial Performance - The company anticipates a loss attributable to shareholders of approximately RMB 35 million to RMB 43 million for the six months ending June 30, 2025, compared to a profit of approximately RMB 8.2 million for the same period in 2024 [1] - The company recorded an after-tax loss from its daily operations estimated between RMB 17 million to RMB 25 million [1] Group 2: Factors Affecting Performance - The overall business environment remains challenging, resulting in a decline in sales revenue [1] - Inventory write-offs and increased provisions are primarily due to large-scale product trials and equipment upgrades related to new product development, with finished goods inventory still awaiting market absorption [1] - The company recorded an after-tax valuation loss of approximately RMB 3 million on investment properties [2] - Additional after-tax losses are attributed to adjustments in overall financial planning between companies within the group in China and Hong Kong [2]

公告称，董事会认为，以下为对本期间业绩不利的主要因素：1)总体营商环境仍然困难，集团销售收入 因此下降。此外，存货撇销及拨备上升主要是由于集团于过去年度为研发新产品及扩大生产能力而进行 大规模的产品试制和设备改造，这些和新产品试制有关的成品库存至今仍有待市场消化。日常经营业务 录得税后亏损约人民币1700万元至人民币2500万元。 2)投资物业录得税后估值亏损共约人民币300万元。3)其余税后亏损主要由于集团在中华人民共和国及 香港的公司之间整体财务规划的调整。其中一间集团内香港公司已经及计划将向另外一间集团内中国公 司偿还一部分计息的贷款，香港子公司的还款资金来自其其中一家中国子公司已经及计划支付的股息， 从而产生中国股息抵扣税的支出及拨备。 神冠控股(00829)盈警后跌超16%，截至发稿，跌16.13%，报0.26港元，成交额673.67万港元。 消息面上，神冠控股发布公告，预期集团于截至2025年6月30日止6个月录得母公司拥有人应占亏损约人 民币3500万元至人民币4300万元，截至2024年6月30日止6个月则录得母公司拥有人应占溢利约人民币 820万元。 ...

Core Viewpoint - The company anticipates a significant loss for the six months ending June 30, 2025, while reporting a profit for the same period in 2024, indicating a challenging operational environment and financial adjustments [1] Financial Performance - The company expects a loss attributable to equity holders of approximately RMB 35 million to RMB 43 million for the six months ending June 30, 2025 [1] - For the six months ending June 30, 2024, the company reported a profit attributable to equity holders of approximately RMB 8.2 million [1] Factors Affecting Performance - The overall business environment remains difficult, leading to a decline in sales revenue [1] - Inventory write-offs and increased provisions are primarily due to large-scale product trials and equipment upgrades conducted in previous years, with finished goods inventory still awaiting market absorption [1] - The company's operating activities recorded a post-tax loss of approximately RMB 17 million to RMB 25 million [1] - Investment properties experienced a post-tax valuation loss of approximately RMB 3 million [1] - Additional post-tax losses are attributed to financial planning adjustments between companies in China and Hong Kong, including loan repayments and associated tax expenses [1]

Core Viewpoint - The company anticipates a loss attributable to equity holders of approximately RMB 35 million to RMB 43 million for the six months ending June 30, 2025, following a profit of approximately RMB 8.2 million for the six months ending June 30, 2024 [1] Financial Performance - The board attributes the adverse performance to several factors, including a challenging overall business environment leading to a decline in sales revenue [1] - Inventory write-offs and increased provisions are primarily due to large-scale product trials and equipment upgrades conducted in previous years for new product development, with finished goods inventory still awaiting market absorption [1] - The company recorded a post-tax loss from ongoing operations of approximately RMB 17 million to RMB 25 million [1] Investment Property and Financial Adjustments - The investment properties experienced a post-tax valuation loss of approximately RMB 3 million [1] - Additional post-tax losses are mainly due to adjustments in overall financial planning between the company's entities in the People's Republic of China and Hong Kong, including a Hong Kong subsidiary repaying part of an interest-bearing loan to another subsidiary in China [1]

神冠控股（集團）有限公司 （於開曼群島註冊成立的有限公司） （股份代 號：00829） 盈利警告 香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示 概 不 就 因 本 公 佈 全 部 或 任 何 部 分 內 容 而 產 生 或 因 依 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 SHENGUAN HOLDINGS (GROUP) LIMITED 3. 其 餘 稅 後 虧 損 主 要 由 於 集 團 在 中 華 人 民 共 和 國（「中 國」）及 香 港 的 公 司 之 間 整 體 財 務 規 劃 的 調 整。其 中 一 間 集 團 內 香 港 公 司（「香港子公司」）已 經 及 計 劃 將 向 另 外 一 間 集 團 內 中 國 公 司 償 還 一 部 分 計 息 的 貸 款，香 港 子 公 司 的 還 款 資 金 來 自 其 其 中 一 家 中 國 子 公 司 已 經 及 計 劃 支 付 的 股 息，從 而 產 生 中 國 股 息 抵 扣 稅 的 支 出 及 撥 ...

格隆汇8月13日丨神冠控股(00829.HK)宣布，董事会会议将于2025年8月25日（星期一）举行，以（其中 包括）审议及批准本集团截至2025年6月30日止六个月的未经审核中期业绩及其刊发，以及审议派付中 期股息（如有）。 ...

（於開曼群島註冊成立的有限公司） 香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示 概 不 就 因 本 公 佈 全 部 或 任 何 部 分 內 容 而 產 生 或 因 倚 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 SHENGUAN HOLDINGS (GROUP) LIMITED 神冠控股（集團）有限公司 （股份代 號：00829） 董事會會議通告 神 冠 控 股（集 團）有 限 公 司（「本公司」及 其 附 屬 公 司「本集團」）董 事（「董 事」）會（「董 事 會」）謹 此 宣 佈，董 事 會 會 議 將 於 二 零 二 五 年 八 月 二 十 五 日（星 期 一）舉 行，以 （其 中 包 括）審 議 及 批 准 本 集 團 截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月 之 未 經 審 核 中 期 業 績 及 其 刊 發，以 及 審 議 派 付 中 期 股 息（如 有）。 承董事會命 神 冠 控 股（集 團）有 限 公 司 主 席 周亞仙 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 神冠控股(集團)有限公司 呈交日期: 2025年8月4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) | 00829 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 20,000,000,000 | HKD | | 0.01 | HKD | | 200,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 20,000,000,000 | HKD | | 0.01 | HKD | | 200,000,000 | 本月底法 ...