来源：中国日报网 2025年10月17日，第十九届杭州文博会华彩启幕，构筑起"文明共美""文脉焕新""数智新城""异想造 物""市井漫游"五大主题展馆，呈现一场多维度、高密度的文化盛宴。 作为文博会中备受瞩目的单元，杭州国际工艺周以"游园织梦"为主题，汇聚70余个知名手工艺品牌与匠 人，以技艺与感悟为经纬，共同编织出一个传统与现代交融、理想与现实对话的工艺美学空间。"栉佩 之美·谭木匠设计大赛"以10年成果展的姿态公开亮相，在140多平方米的场域内，打造了一个集设计展 览、工艺科普、文创互动、手作体验于一体的多元空间。这不仅仅是对过往设计灵感的收纳，亦是设计 随时代发展变化的现实反映。 为"赏"而来 10年好设计首次集结亮相 "栉佩之美·谭木匠设计大赛10年成果展"以"以设计·溯传统·致未来"为主题，展现了大赛从2015年初始探 索，到AI浪潮袭来的2025年的代表性作品，让观众直观感受到10年间设计的风格、工具、审美、技术 等的变迁与理念革新。 同时，大赛更加注重手的参与，鼓励动手制作实物，以手工激发生活中的创造力。2025年，谭木匠携手 《中华手工》与四川美术学院设计学院发起的"髹饰为栉——传统漆艺梳饰当 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年9月30日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 譚木匠控股有限公司 呈交日期: 2025年10月2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) | 00837 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | 10,000,000,000 | HKD | | 0.01 | HKD | | 100,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | | | 本月底結存 | | 10,000,000,000 | HKD | | 0.01 | HKD | | 100,000,000 | 本月底法定/註冊股本總額： HKD 100, ...

Company Information [Board and Committee Members](index=4&type=section&id=Board%20and%20Committee%20Members) The company's board comprises four executive and three independent non-executive directors, with Mr. Tan Lizi and Ms. Liu Kejia appointed on February 1, 2025, and Mr. Zhou Jinrong chairs all key committees - Mr. Tan Lizi and Ms. Liu Kejia were appointed as executive directors on **February 1, 2025**[5](index=5&type=chunk)[119](index=119&type=chunk) - The Audit, Remuneration, and Nomination Committees are all chaired by independent non-executive director Mr. Zhou Jinrong[5](index=5&type=chunk) [Company Contact and Registration Information](index=4&type=section&id=Company%20Contact%20and%20Registration%20Information) The company is registered in the Cayman Islands, with its principal place of business in Wanzhou District, Chongqing, China, and a Hong Kong branch for share registration - The company's registered office is in the Cayman Islands, with its principal place of business in Wanzhou District, Chongqing, China, and a Hong Kong office in Mong Kok, Kowloon[5](index=5&type=chunk)[8](index=8&type=chunk) - The company's stock code is **837**, and its official website is www.ctans.com[8](index=8&type=chunk) Financial Highlights [Key Financial Performance](index=7&type=section&id=Key%20Financial%20Performance) For the six months ended June 30, 2025, revenue increased by 9.4% to RMB 288 million, profit for the period grew by 13.2% to RMB 109 million, and basic earnings per share were RMB 43.8 cents Key Financial Data for the Six Months Ended June 30 | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Percentage Change | | :--- | :--- | :--- | :--- | | Revenue | 287,886 | 263,082 | 9.4% | | Cost of Sales | (110,089) | (100,837) | 9.2% | | Gross Profit | 177,797 | 162,245 | 9.6% | | Gross Profit Margin | 61.8% | 61.7% | 0.1 percentage points | | Profit Before Tax | 133,366 | 119,182 | 11.9% | | Profit for the Period | 109,046 | 96,288 | 13.2% | | Profit Attributable to Owners of the Company | 109,046 | 96,288 | 13.2% | | Basic Earnings Per Share (RMB cents) | 43.8 | 38.7 | 13.2% | [Liquidity and Gearing](index=7&type=section&id=Liquidity%20and%20Gearing) As of June 30, 2025, the company's current ratio was 5.42 and quick ratio was 1.97, with the gearing ratio not applicable due to no interest-bearing bank borrowings Liquidity and Gearing Ratios | Indicator | June 30, 2025 | December 31, 2024 | Percentage Change | | :--- | :--- | :--- | :--- | | Current Ratio | 5.42 | 5.48 | (1.2)% | | Quick Ratio | 1.97 | 2.50 | (21.2)% | | Gearing Ratio | Not Applicable | Not Applicable | Not Applicable | - As of June 30, 2025, and December 31, 2024, the Group had no interest-bearing bank borrowings, rendering the calculation of the gearing ratio meaningless[15](index=15&type=chunk) Chairman's Statement [First Half Operating Review](index=9&type=section&id=First%20Half%20Operating%20Review) Despite a weak macroeconomic environment, Tan Mujiang achieved double-digit retail performance growth through strategic adjustments, largely meeting its first-half targets, but significant customer service deficiencies require reflection - The macroeconomic environment in the first half of 2025 was challenging, with weak market demand and low consumer confidence[17](index=17&type=chunk) - The Group achieved double-digit net retail sales growth by adjusting strategies, such as opening larger stores, promoting customer experience services, and organizing brand events, largely meeting its first-half targets[17](index=17&type=chunk) - The company exhibited significant shortcomings in customer service, failing to uphold its "customer as family, honest and kind, dedicated service" philosophy, requiring heightened vigilance and thorough self-reflection[18](index=18&type=chunk) [Second Half Strategic Outlook](index=9&type=section&id=Second%20Half%20Strategic%20Outlook) In the second half, the company will continue store upgrades, open flagship stores in major Chinese cities and new international concept stores in Hong Kong and Singapore, and host brand promotion events - In the second half, the company will continue to transform counter and strip stores into independent concept stores, with plans to open flagship stores in Beijing, Shanghai, Guangzhou, and Shenzhen[18](index=18&type=chunk) - Plans include opening new international concept stores in Hong Kong and Singapore to expand domestic and international markets and enhance brand image[18](index=18&type=chunk) - The company will host the "Beauty of Combs and Ornaments" Design Competition 10th Anniversary Retrospective Exhibition, focusing on "Wood • Art + Humanity" for brand communication and promotion[18](index=18&type=chunk) Management Discussion and Analysis [Management Review](index=11&type=section&id=Management%20Review) In the first half, the company strictly executed operational goals, focused on domestic market upgrades and large independent stores, explored new overseas channels despite tariff impacts, advanced production technology, completed new factory construction, and maintained robust governance - In early 2025, the Group set clear operating performance targets, key work directions, and critical measures, which were strictly implemented[23](index=23&type=chunk) - The domestic market strategy focused on entering prime business districts, shopping malls, and locations, promoting the upgrade of counter and strip stores to independent stores, and planning to prioritize opening 200-300 square meter flagship concept stores in Beijing, Shanghai, or Guangzhou/Shenzhen[24](index=24&type=chunk) - Overseas market plans for a North American local warehouse were postponed due to US tariff trade disputes, but the company is exploring platforms like Sam's Club and Costco, and will open new concept stores in Hong Kong and Singapore[27](index=27&type=chunk) - Significant progress has been made in intelligent polishing of comb teeth and bodies, and automated one-time milling of comb blanks, with batch trial production underway[28](index=28&type=chunk) - Phase one of the new factory's northern district infrastructure is largely complete, with the logistics distribution center and raw material preparation workshop relocating to the new site in the second half to optimize production processes and enhance safety management[28](index=28&type=chunk) - Market rectification and rights protection efforts continued, resulting in strong retail performance and sales outbound growth in the first half, while overall group governance remained effective and healthy[29](index=29&type=chunk) [Business Review](index=12&type=section&id=Business%20Review) Tan Mujiang's offline POS sales grew 11.9% to RMB 437.5 million, online sales increased 12.65% to RMB 138 million, and overseas outbound sales rose 1.02%, driven by channel expansion, R&D, production improvements, and brand building, while also focusing on human resources and governance [Offline Business](index=12&type=section&id=Offline%20Business) For the six months ended June 30, 2025, offline POS sales reached RMB 437.5 million, an 11.9% year-on-year increase, achieving record high metrics across various business indicators - For the six months ended June 30, 2025, offline POS sales reached approximately **RMB 437.5 million**, a year-on-year increase of **11.9%**, with all business indicators reaching historical highs[30](index=30&type=chunk) - As of June 30, 2025, Tan Mujiang had **1,278 franchised stores** and **1 directly operated store** in mainland China, and **5 franchised stores** and **3 directly operated stores** in Hong Kong overseas, totaling **1,287 stores**, an increase of **33 stores** from the end of 2024[32](index=32&type=chunk) - **101 new stores** were opened, with shopping mall stores accounting for **93.07%** and an average area of **21.50㎡**; over a hundred stores were renovated, rapidly eliminating or upgrading some outlets[33](index=33&type=chunk) - Cumulative new members reached **171,917**, a **34.51%** increase compared to the same period in 2024, with total backend members exceeding **1.4 million**[34](index=34&type=chunk) - During the reporting period, three new product distributions were conducted, totaling **27 new products**, including intangible cultural heritage craft products, Mother's Day products, summer products, and Gua Sha comb products[34](index=34&type=chunk) - Key offline business initiatives for the second half include new retail business training, implementing store image design and display standards, building a loyal franchisee team, and addressing higher customer demands for products and services[38](index=38&type=chunk) [Online Business](index=16&type=section&id=Online%20Business) In the first half, online sales reached RMB 138 million, a 12.65% year-on-year increase, exceeding the semi-annual target, driven by new platform expansion, social media promotion, service optimization, and live streaming - For the six months ended June 30, 2025, online business achieved sales of **RMB 138 million**, completing **108%** of the semi-annual target, a year-on-year increase of **12.65%**[39](index=39&type=chunk) - Online business now covers **8 mainstream e-commerce platforms**, and a JBP strategic cooperation was signed with Tmall, utilizing "Follow-up Assistant" to recall non-member purchasers, generating **RMB 1.89 million** in payments[43](index=43&type=chunk) - Douyin channel promotion focused on brand culture, with Douyin keyword search index increasing by **80.26%** year-on-year in the first half, and total video views reaching **249 million**[43](index=43&type=chunk) - On-site and off-site content promotion generated sales of **RMB 3.083 million**, a year-on-year increase of **31.3%**, indicating good content conversion effectiveness[43](index=43&type=chunk) - The introduction of Leyan robots and Shizai Smart RPA robots enhanced reception service capabilities and refund processing efficiency, reducing manual response times[43](index=43&type=chunk) - "Hair Care Comb Cui Ping" and "Lacquer Art Comb Bear with Bamboo" emerged as potential best-selling products[44](index=44&type=chunk) - Tmall live streaming accumulated **179 sessions**, totaling **1,417.5 hours**, with "seed-to-sale" transaction value increasing by **19.4%** year-on-year, and member transactions contributing as high as **68%**[44](index=44&type=chunk) - Key online business initiatives for the second half include strengthening platform communication, providing personalized products, integrating online and offline channels, experimenting with AI digital human live streaming, and continuously optimizing private domain customer operations[46](index=46&type=chunk)[47](index=47&type=chunk) [Overseas Business](index=20&type=section&id=Overseas%20Business) In the first half, overseas offline outbound sales were RMB 1.812 million, cross-border e-commerce sales were RMB 0.453 million, and Hong Kong direct store sales were HKD 2.025 million, with plans for new stores in Hong Kong and Singapore Overseas Business Sales for the Six Months Ended June 30 | Indicator | 2025 (RMB/HKD) | 2024 (RMB/HKD) | Year-on-Year Growth/Decline | | :--- | :--- | :--- | :--- | | Overseas Offline Outbound Sales | RMB 1.812 million | - | 1.02% | | Cross-border E-commerce Platform Sales | RMB 0.453 million | - | 2.6% | | Hong Kong Direct Store Sales | HKD 2.025 million | - | (7.11)% | - Plans include opening **1 direct store** each in Hong Kong and Singapore, with the Hong Kong store featuring a new design image and the Singapore store using a mature image, expected to open by the end of October[51](index=51&type=chunk) - The original plan to establish overseas warehouse sites was postponed due to US-China tariff issues[51](index=51&type=chunk) - The company participated in the Las Vegas Consumer Goods and Gifts Show in the first half and will attend the 100th Tokyo International Gift Show in the second half[51](index=51&type=chunk) - The US official website tanmujiang.com is being rebuilt and upgraded, expected to launch in September, to unify overseas brand names and enhance recognition[51](index=51&type=chunk) [Creative R&D](index=20&type=section&id=Creative%20R%26D) The creative R&D team launched 23 new products in the first half, focusing on new structures, materials, and styles, and plans to integrate market feedback to develop best-selling products - The creative R&D team explored new structures, materials, and styles for product design and development, launching **23 new products** including inserted-tooth hair combs, inlaid-tooth combs, mixed-material accessories, and co-branded products[49](index=49&type=chunk)[53](index=53&type=chunk) - Co-branded "Family Series" and "Time Series" products and packaging designs were launched with Hong Kong illustrators Siu Kim Ying and Lee Chi Tat, totaling **13 new products**[53](index=53&type=chunk) - Products were specifically developed for overseas market demands, including Southeast Asian regional products and North American beard combs[53](index=53&type=chunk) - Future creative R&D will focus on "brand image enhancement," exploring new materials, processes, and structures, and integrating market feedback into the design and development process to create best-selling products[53](index=53&type=chunk) [Production Technology](index=22&type=section&id=Production%20Technology) In the first half, production orders remained stable despite increased complexity, with efficiency gains of 10.78%, and significant progress in automated comb blank milling, surface adhesion, and glue-free comb structures - In the first half, actual delivery volume was **2.8372 million pieces**, a decrease of approximately **50,000 pieces** year-on-year, while comprehensive production efficiency per capita working hour increased by **10.78%**[54](index=54&type=chunk) - The "Tan Mujiang Product Type Testing Database" was completed and put into use, and the prototype equipment for automated comb blank profiling technology was fabricated and functionally verified[55](index=55&type=chunk) - Significant improvements were achieved in product surface adhesion and the structural optimization of glue-free inserted-tooth combs, slated for production application in the second half[55](index=55&type=chunk) - The raw material precision processing project has passed acceptance, improving material yield and processing efficiency[55](index=55&type=chunk) - The natural plant dyeing process technology project for wooden combs completed extraction and dyeing trials with **10 natural herbal plant pigments**, significantly slowing down color fading[56](index=56&type=chunk) [Logistics Distribution and After-Sales Service](index=23&type=section&id=Logistics%20Distribution%20and%20After-Sales%20Service) In the first half, the logistics team shipped 3.0337 million items, a 9.79% increase, and completed 156,357 after-sales repairs, a 14.66% increase, continuously improving service quality - The logistics distribution team shipped a total of **3.0337 million items**, a year-on-year increase of **9.79%**[59](index=59&type=chunk) - A total of **156,357 product after-sales repairs** were completed, a year-on-year increase of **14.66%**[60](index=60&type=chunk) - Repair quality is continuously improved through source inspection, employee skill enhancement, increased post-repair checks, updated service forms, and standardized repair station management[61](index=61&type=chunk) [Brand Building](index=24&type=section&id=Brand%20Building) In the first half, Tan Mujiang successfully hosted the "Comb Garden" pop-up event, enhancing brand recognition, concluded its 9th design competition, and received multiple awards and recognitions - In March 2025, Tan Mujiang's "Comb Garden" themed event debuted with a new image in Changsha IFS, and toured Kunming and Guangzhou, enhancing brand awareness and reputation[63](index=63&type=chunk)[64](index=64&type=chunk) - The 9th "Beauty of Combs and Ornaments • Tan Mujiang Design Competition" successfully concluded, receiving **528 entries** (sets) and conducting university-themed lectures[64](index=64&type=chunk) - The brand received multiple honors, including an Excellence Award at the 11th "Zijin Award" Cultural and Creative Design Competition for the "Comb Rhyme Landscape" series of wooden combs, and a Silver Award at the China Tourism Commodity Competition for the "Customized Gift Box Chongqing Impression"[65](index=65&type=chunk)[67](index=67&type=chunk) - Chongqing Tan Mujiang Handicrafts Co., Ltd.'s Intangible Cultural Heritage Comb Industrial Design Center was recognized as a Chongqing Municipal Excellent Industrial Design Center and was selected for the "Yu Ban Li" Chongqing Elite TOP 10 list and the China Brand Value Evaluation list in the Independent Innovation category[68](index=68&type=chunk)[69](index=69&type=chunk)[70](index=70&type=chunk) [Human Resources and Comprehensive Governance](index=25&type=section&id=Human%20Resources%20and%20Comprehensive%20Governance) The company upholds its core values, promotes fair market expansion, addresses internal violations, encourages employee suggestions, continues market rectification, protects intellectual property, and prioritizes disabled employment and public welfare - The company adheres to its core values of "Honesty, Labor, Happiness" and ethical standards of "Kindness, Humility, Craftsmanship," promoting fair market expansion mechanisms and long-term brand philosophy, avoiding price wars[71](index=71&type=chunk) - In the first half, **10 instances** of internal cultural norm violations were investigated, and franchised stores with inadequate service were penalized with security deposit deductions and closures, while the franchise system management contract was improved[72](index=72&type=chunk) - A total of **443 rationalization and improvement suggestions** were received in the first half, with **151 adopted** and **94 implemented**[74](index=74&type=chunk) - Market rectification and rights protection efforts in the first half collected **23 cases** of violations, resulting in awarded compensation of **RMB 0.2685 million**, with continued efforts to combat online infringement[74](index=74&type=chunk) - As of June 30, 2025, the Group held **765 valid trademarks** (384 domestic, 128 in Hong Kong, Macau, Taiwan, and overseas) and **121 valid patents** (16 invention, 55 utility model, 50 design)[75](index=75&type=chunk)[76](index=76&type=chunk) - The company remains committed to promoting and safeguarding employment for people with disabilities, with a net increase of **10 disabled employees** in the first half, bringing the total to **357**, and improved accessibility facilities[79](index=79&type=chunk) - Public welfare activities continue, and improper public opinion handling issues are publicly reported to promote internal improvement and market standardization[80](index=80&type=chunk) [Financial Review](index=28&type=section&id=Financial%20Review) For the six months ended June 30, 2025, revenue increased by 9.4% to RMB 288 million, driven by market recovery and sales mix, with gross margin slightly up to 61.8%, and profit for the period rising 13.2% to RMB 109 million [Revenue](index=28&type=section&id=Revenue) For the six months ended June 30, 2025, the company's revenue was approximately RMB 288 million, a 9.4% increase year-on-year, primarily due to market demand recovery Revenue Breakdown (For the Six Months Ended June 30) | Sales Category | 2025 (RMB thousands) | % Share | 2024 (RMB thousands) | % Share | | :--- | :--- | :--- | :--- | :--- | | Combs | 21,134 | 7.3% | 20,201 | 7.7% | | Mirrors | 230 | 0.1% | 267 | 0.1% | | Gift Sets | 264,014 | 91.7% | 240,437 | 91.3% | | Other Accessories* | 2,215 | 0.8% | 1,715 | 0.7% | | Franchise Fee Income | 293 | 0.1% | 462 | 0.2% | | **Total** | **287,886** | **100.0%** | **263,082** | **100.0%** | - The increase in revenue was primarily due to the gradual recovery of market demand during the reporting period compared to the six months ended June 30, 2024[81](index=81&type=chunk) [Cost of Sales](index=28&type=section&id=Cost%20of%20Sales) For the six months ended June 30, 2025, cost of sales was approximately RMB 110 million, a 9.2% year-on-year increase, consistent with increased sales volume and changes in product mix - Cost of sales was approximately **RMB 110,089,000**, an increase of **9.2%** compared to the same period last year, primarily due to increased sales volume and changes in the sales product mix[82](index=82&type=chunk) [Gross Profit and Gross Profit Margin](index=28&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) For the six months ended June 30, 2025, gross profit was approximately RMB 178 million, a 9.6% year-on-year increase, with gross profit margin slightly rising to 61.8% due to a shift towards higher-margin products - Gross profit was approximately **RMB 177,797,000**, an increase of **9.6%** compared to the same period last year[83](index=83&type=chunk) - Gross profit margin increased from **61.7%** in 2024 to **61.8%** in 2025, primarily due to a shift in sales mix towards higher-margin products[83](index=83&type=chunk) [Other Income](index=28&type=section&id=Other%20Income) For the six months ended June 30, 2025, other income was approximately RMB 22.762 million, a 5.8% year-on-year increase, mainly from increased VAT preferential refunds and government subsidies - Other income was approximately **RMB 22,762,000**, an increase of **5.8%** compared to the same period last year, primarily from increased China VAT preferential refunds and government subsidies[83](index=83&type=chunk) [Selling and Distribution Expenses](index=29&type=section&id=Selling%20and%20Distribution%20Expenses) For the six months ended June 30, 2025, selling and distribution expenses were approximately RMB 46.012 million, a 6.1% year-on-year increase, mainly due to higher advertising, transportation, and staff costs - Selling and distribution expenses were approximately **RMB 46,012,000**, an increase of **6.1%** compared to the same period last year, primarily due to increased advertising expenses, transportation costs, and staff costs[86](index=86&type=chunk) [Administrative Expenses](index=29&type=section&id=Administrative%20Expenses) For the six months ended June 30, 2025, administrative expenses were approximately RMB 17.673 million, a 2.7% year-on-year decrease, mainly due to reduced consulting fees - Administrative expenses were approximately **RMB 17,673,000**, a decrease of **2.7%** compared to the same period last year, primarily due to reduced consulting fees[86](index=86&type=chunk) [Operating Profit](index=29&type=section&id=Operating%20Profit) For the six months ended June 30, 2025, operating profit was approximately RMB 134 million, an 11.9% year-on-year increase, primarily attributable to increased gross profit - Operating profit was approximately **RMB 133,654,000**, an increase of **11.9%** compared to the same period last year, primarily attributable to an increase in gross profit of approximately **RMB 15,552,000**[86](index=86&type=chunk) [Finance Costs](index=29&type=section&id=Finance%20Costs) For the six months ended June 30, 2025, finance costs were approximately RMB 0.288 million, largely stable year-on-year, primarily from HKFRS 16, with no bank loan interest expenses - The Group had no bank loan interest expenses in the first half of 2025 and 2024[86](index=86&type=chunk) - Finance costs were approximately **RMB 288,000**, primarily arising from the adoption of HKFRS 16[86](index=86&type=chunk) [Profit Before Tax](index=29&type=section&id=Profit%20Before%20Tax) For the six months ended June 30, 2025, profit before tax was approximately RMB 133 million, an 11.9% year-on-year increase, primarily due to higher operating profit - Profit before tax was approximately **RMB 133,366,000**, an increase of **11.9%** compared to the same period last year, primarily attributable to an increase in operating profit of approximately **RMB 14,163,000**[86](index=86&type=chunk) [Income Tax Expense](index=29&type=section&id=Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense was approximately RMB 24.32 million, a 6.2% year-on-year increase, with an effective tax rate of 18.2%, down 1.0 percentage point - Income tax expense was approximately **RMB 24,320,000**, an increase of **6.2%** compared to the same period last year, primarily due to increased profit before tax and deferred tax provision[86](index=86&type=chunk) - The effective tax rate for the reporting period was **18.2%**, a decrease of **1.0 percentage point** compared to **19.2%** in the same period last year[87](index=87&type=chunk) [Profit for the Period](index=29&type=section&id=Profit%20for%20the%20Period) For the six months ended June 30, 2025, profit for the period was approximately RMB 109 million, a 13.2% year-on-year increase, influenced by the combined effect of the aforementioned financial factors - Profit for the period was approximately **RMB 109,046,000**, an increase of **13.2%** compared to the same period last year[87](index=87&type=chunk) [Liquidity and Sources of Funds](index=30&type=section&id=Liquidity%20and%20Sources%20of%20Funds) The Group primarily uses cash generated from operations to meet funding needs, had no bank loans during the period, and saw cash and bank balances significantly increase to RMB 117 million as of June 30, 2025 - The Group primarily uses cash generated from operations to meet its working capital needs and had no bank loans during the reporting period[89](index=89&type=chunk) - As of June 30, 2025, cash and bank balances were **RMB 116,530,000**, a significant increase from **RMB 41,714,000** as of December 31, 2024[89](index=89&type=chunk) - The Directors believe the Group has sufficient working capital to meet its funding needs for the current period and at least the next twelve months from the reporting date[89](index=89&type=chunk) [Cash Flow](index=30&type=section&id=Cash%20Flow) During the reporting period, net cash and cash equivalents increased by approximately RMB 74.816 million, with net cash from operating activities at RMB 98.627 million, from investing activities at RMB 56.796 million, and used in financing activities at RMB 86.435 million - During the reporting period, cash and cash equivalents increased by approximately **RMB 74,816,000**[90](index=90&type=chunk) Major Components of Cash Flow (For the Six Months Ended June 30) | Item | 2025 (RMB thousands) | | :--- | :--- | | Net Cash from Operating Activities | 98,627 | | Net Cash from Investing Activities | 56,796 | | Net Cash Used in Financing Activities | (86,435) | | Net Positive Impact from Exchange Rate Changes | 5,828 | [Capital Structure](index=30&type=section&id=Capital%20Structure) As of June 30, 2025, the Group had no interest-bearing bank loans, rendering the gearing ratio inapplicable - As of June 30, 2025, and during the reporting period, the Group had no bank loans[91](index=91&type=chunk) - The calculation of the gearing ratio is meaningless due to the absence of interest-bearing bank loans[92](index=92&type=chunk) [Pledge of Assets](index=30&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group had no assets pledged to banks - As of June 30, 2025, the Group had no assets pledged to banks[93](index=93&type=chunk) [Capital Expenditure](index=30&type=section&id=Capital%20Expenditure) During the reporting period, capital expenditure was RMB 11.236 million, a decrease from RMB 22.32 million in the prior year - During the reporting period, the Group's capital expenditure was **RMB 11,236,000**, a decrease from **RMB 22,320,000** in the same period last year[94](index=94&type=chunk) [Exchange Rate Risk](index=30&type=section&id=Exchange%20Rate%20Risk) The Group's primary business operates with RMB and HKD as functional and operating currencies, posing no significant risk to other exchange rate fluctuations - The Group's primary business operates with RMB and HKD as functional and operating currencies, posing no significant risk to other exchange rate fluctuations[95](index=95&type=chunk) [Contingent Liabilities, Legal and Potential Proceedings](index=31&type=section&id=Contingent%20Liabilities,%20Legal%20and%20Potential%20Proceedings) As of June 30, 2025, the Group has a property in Jurong City, Jiangsu, with a carrying value of approximately RMB 22.735 million, for which ownership certificates are pending due to the developer's liquidation, but management expects no material adverse impact - The Group has a property in Jurong City, Jiangsu, with a carrying value of approximately **RMB 22,735,000**, for which ownership certificates have not yet been obtained, and the developer has entered liquidation proceedings[96](index=96&type=chunk) - Management assesses that the liquidator is highly likely to continue executing the sale and purchase agreement and complete the issuance of ownership certificates, thus having no material adverse impact on business operations and financial position[96](index=96&type=chunk) - As of June 30, 2025, other than the aforementioned disclosure, the Group had no other significant contingent liabilities, legal proceedings, or potential litigation[97](index=97&type=chunk) [Material Acquisitions and Disposals](index=31&type=section&id=Material%20Acquisitions%20and%20Disposals) For the six months ended June 30, 2025, the Group had no material acquisitions or disposals - For the six months ended June 30, 2025, the Group had no material acquisitions or disposals[97](index=97&type=chunk) [Going Concern](index=31&type=section&id=Going%20Concern) Based on current financial conditions and available financing, the Group has sufficient financial resources to continue operations, thus financial reports are prepared on a going concern basis - The Group has sufficient financial resources to continue operations for the foreseeable future, and the financial reports are prepared on a going concern basis[97](index=97&type=chunk) [Significant Investments Held](index=31&type=section&id=Significant%20Investments%20Held) As of June 30, 2025, the Group's investment properties had a carrying value of approximately RMB 84.1 million, with no significant difference from fair value and no purchases or disposals during the period - As of June 30, 2025, the Group's investment properties had a carrying value of approximately **RMB 84,100,000**[97](index=97&type=chunk) - The Directors believe there is no material difference between the carrying amount of investment properties and their fair value as of December 31, 2024, with no fair value changes recognized, nor any purchases or disposals of investment properties during the period[97](index=97&type=chunk) [Future Outlook](index=32&type=section&id=Future%20Outlook) In the second half of 2025, the company plans to continue store upgrades, expand into prime commercial locations, open flagship stores in major Chinese cities and international concept stores in Hong Kong and Singapore, and advance brand activities and production improvements - In the second half, the company will continue to implement store upgrades, expand into prime commercial areas and shopping malls, and encourage the opening of larger stores in new first-tier cities[101](index=101&type=chunk) - Plans include opening Lee Wing Shing international concept stores in Hong Kong and Singapore, and designing and opening flagship concept stores with a "Wood • Art + Humanity • Modern Song Dynasty Aesthetics" style in Beijing, Shanghai, or Guangzhou/Shenzhen[101](index=101&type=chunk) - The company will continue to organize the "Comb Garden" brand pop-up events, host the 10th Design Competition and its 10th-anniversary retrospective exhibition, and resume wood art exhibitions[101](index=101&type=chunk) - The logistics distribution center and the Wanzhou factory's material preparation workshop will relocate to the new factory area, and progress will be made in the maturation and small-batch production of traditional handicraft techniques such as lacquerware, mother-of-pearl inlay, and cloisonné[101](index=101&type=chunk) - Technical improvements will be made to product spraying processes and working environments, accessibility facilities for disabled employees at the old factory will be continuously improved, and plans for a Tan Mujiang Museum will be conceptualized[101](index=101&type=chunk) [Human Resources and Training](index=32&type=section&id=Human%20Resources%20and%20Training) As of June 30, 2025, the Group employed 1,007 staff, committed to providing employment opportunities for people with disabilities and enhancing employee skills and corporate culture through various training programs - As of June 30, 2025, the Group employed a total of **1,007 staff** across mainland China, Hong Kong, and overseas regions[99](index=99&type=chunk) - The Group is committed to providing employment opportunities for people with disabilities and enhancing employee work skills, marketing strategies, and team spirit through various training programs[99](index=99&type=chunk) - For the six months ended June 30, 2025, the total remuneration paid to employees by the Group was approximately **RMB 54,939,000**, an increase from **RMB 51,346,000** in the same period of 2024[99](index=99&type=chunk) Other Information [Principal Business](index=33&type=section&id=Principal%20Business) The company primarily designs, manufactures, and distributes small wooden ornaments made from natural wood, including combs, mirrors, other wooden accessories, and gift sets, mainly sold under the "Tan Mujiang" brand - The Group primarily engages in the design, manufacturing, and distribution of small wooden ornaments made from natural wood, including wooden combs, mirrors, other wooden accessories, and gift sets[102](index=102&type=chunk) - Products are mainly sold under the "Tan Mujiang" brand through franchised stores, distribution networks, and directly operated stores[102](index=102&type=chunk) [Directors' and Major Shareholders' Interests](index=33&type=section&id=Directors'%20and%20Major%20Shareholders'%20Interests) As of June 30, 2025, Director Mr. Tan Chuanhua held 67.43% of the company's shares through a controlled entity, while Mr. Yang Tiannan beneficially owned 0.99%, with major shareholders Mr. Tan Chuanhua, Ms. Fan Chengqin, and Lingchang all holding 67.43% long positions Directors' Interests in the Company's Shares (As of June 30, 2025) | Director Name | Capacity/Nature of Interest | Number of Securities | Approximate Percentage | | :--- | :--- | :--- | :--- | | Tan Chuanhua | Interest in controlled corporation | 167,700,000 | 67.43% | | Yang Tiannan | Beneficial owner | 2,480,000 | 0.99% | Major Shareholders' Interests in the Company's Shares (As of June 30, 2025) | Name | Capacity/Nature of Interest | Number of Shares | Type | Approximate Percentage | | :--- | :--- | :--- | :--- | :--- | | Tan Chuanhua | Interest in controlled corporation | 167,700,000 | Long Position | 67.43% | | Fan Chengqin | Interest in controlled corporation | 167,700,000 | Long Position | 67.43% | | Lingchang | Beneficial owner | 167,700,000 | Long Position | 67.43% | [Capital Commitments and Public Float](index=35&type=section&id=Capital%20Commitments%20and%20Public%20Float) As of June 30, 2025, the Group had contracted but unprovided capital commitments of approximately RMB 20.588 million for property, plant, and equipment, maintaining a public float of at least 25% - As of June 30, 2025, the Group had contracted but unprovided capital commitments of approximately **RMB 20,588,000** for the acquisition of property, plant, and equipment[109](index=109&type=chunk) - From the reporting period to the date of this report, at least **25%** of the company's issued share capital was held by public shareholders[110](index=110&type=chunk) - During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[111](index=111&type=chunk) [Corporate Governance](index=36&type=section&id=Corporate%20Governance) The company is committed to complying with the Corporate Governance Code, has adopted the Model Code for directors' securities transactions, and its Nomination and Audit Committees are established and functioning, with the Audit Committee reviewing the interim financial information - The company has complied with the code provisions set out in the Corporate Governance Code throughout the reporting period[113](index=113&type=chunk) - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 to the Listing Rules[114](index=114&type=chunk) - Both the Nomination Committee and the Audit Committee have been established, and the Audit Committee has reviewed the financial information in this interim report and agreed with the accounting treatments adopted[115](index=115&type=chunk)[116](index=116&type=chunk) [Dividends and Directors' Appointments](index=37&type=section&id=Dividends%20and%20Directors'%20Appointments) The company paid a final dividend of HKD 36.63 cents per share for FY2024, totaling approximately HKD 91.104 million, but the board resolved not to declare any interim dividend for the first half of 2025, and Mr. Tan Lizi and Ms. Liu Kejia were appointed as executive directors on February 1, 2025 - The company paid a final dividend for FY2024 of **HKD 36.63 cents per share** on June 30, 2025, totaling approximately **HKD 91,104,000** (approximately **RMB 85,632,000**)[118](index=118&type=chunk) - The Board resolved not to declare any interim dividend for the six months ended June 30, 2025[118](index=118&type=chunk) - Mr. Tan Lizi and Ms. Liu Kejia were appointed as executive directors of the company on **February 1, 2025**[119](index=119&type=chunk) Condensed Consolidated Statement of Profit or Loss [Profit or Loss Overview](index=38&type=section&id=Profit%20or%20Loss%20Overview) For the six months ended June 30, 2025, the company reported revenue of RMB 288 million, gross profit of RMB 178 million, profit for the period of RMB 109 million, and basic earnings per share of RMB 43.8 cents Condensed Consolidated Statement of Profit or Loss (For the Six Months Ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 287,886 | 263,082 | | Cost of Sales | (110,089) | (100,837) | | Gross Profit | 177,797 | 162,245 | | Other Income | 22,762 | 21,520 | | Selling and Distribution Expenses | (46,012) | (43,386) | | Administrative Expenses | (17,673) | (18,170) | | Other Operating Expenses | (3,220) | (2,718) | | Operating Profit | 133,654 | 119,491 | | Finance Costs | (288) | (309) | | Profit Before Tax | 133,366 | 119,182 | | Income Tax | (24,320) | (22,894) | | Profit for the Period | 109,046 | 96,288 | | Basic Earnings Per Share | RMB 43.8 cents | RMB 38.7 cents | Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income [Comprehensive Income Overview](index=39&type=section&id=Comprehensive%20Income%20Overview) For the six months ended June 30, 2025, profit for the period was RMB 109 million, with net other comprehensive income of RMB 5.828 million, resulting in a total comprehensive income of RMB 115 million Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the Six Months Ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit for the Period | 109,046 | 96,288 | | Exchange differences on translation from functional currency to presentation currency | (3,530) | 5,787 | | Exchange differences arising from translation of overseas operations | 9,358 | (7,692) | | Other Comprehensive Income/(Loss) for the Period | 5,828 | (1,905) | | Total Comprehensive Income for the Period | 114,874 | 94,383 | Condensed Consolidated Statement of Financial Position [Assets and Liabilities Overview](index=40&type=section&id=Assets%20and%20Liabilities%20Overview) As of June 30, 2025, the Group's total non-current assets were RMB 566 million, total current assets were RMB 466 million, and net assets increased to RMB 913 million from RMB 884 million at the end of 2024 Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 139,903 | 132,355 | | Right-of-use Assets | 34,400 | 36,233 | | Investment Properties | 84,100 | 84,100 | | Unpledged Fixed Bank Deposits | 306,000 | 218,000 | | Other Receivables, Deposits and Prepayments | 1,137 | 624 | | **Total Non-current Assets** | **565,540** | **471,312** | | **Current Assets** | | | | Inventories | 296,535 | 292,498 | | Trade Receivables | 10,540 | 7,153 | | Other Receivables, Deposits and Prepayments | 12,006 | 10,656 | | Financial Assets at Fair Value Through Profit or Loss | 10,000 | 80,791 | | Unpledged Fixed Bank Deposits (maturing in >3 months but <1 year) | 20,000 | 105,000 | | Cash and Cash Equivalents | 116,530 | 41,714 | | **Total Current Assets** | **465,611** | **537,812** | | **Current Liabilities** | | | | Trade Payables | 7,738 | 9,507 | | Other Payables and Accruals | 46,353 | 47,798 | | Income Tax Payable | 29,642 | 38,595 | | Lease Liabilities | 2,175 | 2,161 | | **Total Current Liabilities** | **(85,908)** | **(98,061)** | | **Net Current Assets** | **379,703** | **439,751** | | **Total Assets Less Current Liabilities** | **945,243** | **911,063** | | **Non-current Liabilities** | | | | Deferred Tax Liabilities | 22,197 | 16,654 | | Deferred Income | 487 | 497 | | Lease Liabilities | 9,358 | 9,953 | | **Total Non-current Liabilities** | **(32,042)** | **(27,104)** | | **Net Assets** | **913,201** | **883,959** | | **Total Equity** | **913,201** | **883,959** | Condensed Consolidated Statement of Changes in Equity - Unaudited [Equity Movement Overview](index=41&type=section&id=Equity%20Movement%20Overview) As of June 30, 2025, total equity attributable to owners of the company increased to RMB 913 million from RMB 884 million on January 1, 2025, driven by profit for the period and foreign currency translation differences, net of dividend payments Condensed Consolidated Statement of Changes in Equity (For the Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Total Equity at January 1 | 883,959 | 808,484 | | Profit for the Period | 109,046 | 96,288 | | Exchange differences on translation from functional currency to presentation currency | (3,530) | 5,787 | | Exchange differences arising from translation of overseas operations | 9,358 | (7,692) | | Total Comprehensive Income for the Period | 114,874 | 94,383 | | Dividends | (85,632) | (87,000) | | Acquisition of additional interests in a subsidiary | - | (4,444) | | Total Equity at June 30 | 913,201 | 811,423 | Condensed Consolidated Statement of Cash Flows [Cash Flow Overview](index=42&type=section&id=Cash%20Flow%20Overview) For the six months ended June 30, 2025, net cash and cash equivalents increased by RMB 68.988 million, with net cash from operating activities at RMB 98.627 million, from investing activities at RMB 56.796 million, and used in financing activities at RMB 86.435 million Condensed Consolidated Statement of Cash Flows (For the Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 98,627 | 53,530 | | Net Cash from Investing Activities | 56,796 | 77,719 | | Net Cash Used in Financing Activities | (86,435) | (92,418) | | Net Increase in Cash and Cash Equivalents | 68,988 | 38,831 | | Cash and Cash Equivalents at January 1 | 41,714 | 67,381 | | Net Effect of Exchange Rate Changes | 5,828 | (1,908) | | Cash and Cash Equivalents at June 30 | 116,530 | 104,304 | Notes to the Unaudited Interim Financial Report [General Information and Basis of Preparation](index=43&type=section&id=General%20Information%20and%20Basis%20of%20Preparation) The company, incorporated in the Cayman Islands and listed on the HKEX, prepared its interim financial report under HKAS 34 and Listing Rules, measured at historical cost, and reviewed by the Audit Committee, with no material impact from new HKFRS amendments - The company was incorporated in the Cayman Islands and its shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited[136](index=136&type=chunk) - The unaudited interim financial report has been prepared in accordance with Hong Kong Accounting Standard 34 Interim Financial Reporting issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of Appendix 16 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[137](index=137&type=chunk) - The condensed consolidated interim financial statements are prepared on the historical cost basis, except for investment properties and financial assets at fair value through profit or loss, which are measured at fair value, and have been reviewed by the Audit Committee[137](index=137&type=chunk) - The application of the revised Hong Kong Financial Reporting Standards during the period had no material impact on the Group's financial position and performance during the period and prior periods, and/or the disclosures contained in these condensed consolidated interim financial statements[139](index=139&type=chunk) [Accounting Judgments and Segment Reporting](index=45&type=section&id=Accounting%20Judgments%20and%20Segment%20Reporting) Management's significant judgments and estimation uncertainties in preparing financial statements remain consistent with the prior year, and no segment information is presented as over 90% of the Group's revenue, results, and assets derive from a single segment of wooden crafts and accessories - The significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty are the same as those described in the consolidated financial statements for the previous year[141](index=141&type=chunk) - Over **90%** of the Group's revenue, results, and assets are derived from a single segment of manufacturing and selling wooden crafts and accessories, thus no segment information is presented[141](index=141&type=chunk) - The Group's sales generally fluctuate due to seasonality, with higher sales in March to April and September to December, primarily due to increased purchases before holidays[142](index=142&type=chunk) [Revenue and Other Income Details](index=46&type=section&id=Revenue%20and%20Other%20Income%20Details) The Group's principal business is designing, manufacturing, and distributing "Tan Mujiang" brand small wooden crafts and accessories, generating RMB 288 million in goods sales and RMB 0.293 million in franchise fees for the six months ended June 30, 2025 - The Group's principal business is the design, manufacturing, and distribution of "Tan Mujiang" brand small wooden crafts and accessories, and operating franchised and distribution networks[143](index=143&type=chunk) Revenue Breakdown (For the Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Sales of Goods | 287,593 | 262,620 | | Franchise Fee Income | 293 | 462 | | **Total** | **287,886** | **263,082** | Other Income Breakdown (For the Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Government Subsidies | 2,459 | - | | Interest Income from Financial Assets | 1,450 | 5,336 | | Gain on Fair Value Change of Financial Assets at FVTPL | 225 | 25 | | China VAT Preferential Refunds | 16,412 | 12,298 | | Rental Income from Investment Properties | 1,095 | 2,267 | | Net Exchange Gain | 15 | 52 | | Reversal of Loss Provision for Other Receivables | 10 | - | | Others | 1,096 | 1,542 | | **Total** | **22,762** | **21,520** | [Profit Before Tax and Income Tax](index=47&type=section&id=Profit%20Before%20Tax%20and%20Income%20Tax) For the six months ended June 30, 2025, profit before tax was RMB 133 million, with income tax expense of RMB 24.32 million and an effective tax rate of 18.2%, benefiting from preferential tax rates and deductions for employing disabled individuals Components of Profit Before Tax (For the Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Carrying amount of inventories sold | 111,087 | 101,430 | | Inventories (reversal of write-down)/write-down | (998) | (593) | | Cost of Inventories | 110,089 | 100,837 | | Depreciation - Property, Plant and Equipment | 3,665 | 2,515 | | Depreciation - Right-of-use Assets | 1,769 | 1,847 | | Staff Costs (including Directors' emoluments) | 54,939 | 51,346 | | Net Rental Income | (723) | (1,940) | Income Tax Expense (For the Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current Tax - China Corporate Income Tax | 18,678 | 19,135 | | Deferred Tax - Provision for the Period | 5,642 | 3,759 | | **Total** | **24,320** | **22,894** | - Chongqing Tan Mujiang Handicrafts Co., Ltd. enjoys a preferential corporate income tax rate of **15%**[148](index=148&type=chunk) - Tan Mujiang, a wholly-owned subsidiary of the Group, is entitled to a double income tax deduction for salaries paid to its disabled employees and VAT refunds[149](index=149&type=chunk) [Earnings Per Share](index=49&type=section&id=Earnings%20Per%20Share) For the six months ended June 30, 2025, basic earnings per share were RMB 43.8 cents, calculated using a profit of RMB 109 million and a weighted average of 248,714 thousand ordinary shares, with no diluted earnings presented due to the absence of potential ordinary shares - The profit used for calculating basic earnings per share was **RMB 109,046,000**[151](index=151&type=chunk) - The weighted average number of ordinary shares outstanding was **248,714 thousand shares**[153](index=153&type=chunk) - No diluted earnings per share are presented as there were no potential ordinary shares outstanding during the period[153](index=153&type=chunk) [Fixed Assets and Trade Receivables](index=50&type=section&id=Fixed%20Assets%20and%20Trade%20Receivables) For the six months ended June 30, 2025, the Group's property, plant, and equipment acquisitions totaled RMB 11.236 million, investment property carrying values were not materially different from fair value, and trade receivables amounted to RMB 10.54 million, with RMB 8.551 million aged 0-30 days - For the six months ended June 30, 2025, the total cost of property, plant, and equipment acquired by the Group was **RMB 11,236,000**[155](index=155&type=chunk) - The Directors believe that the carrying amount of the Group's investment properties does not materially differ from their fair value as estimated on December 31, 2024[155](index=155&type=chunk) Ageing Analysis of Trade Receivables (Net of Loss Provision) | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | 0 to 30 days | 8,551 | 5,617 | | 31 to 60 days | 744 | 799 | | 61 to 90 days | 201 | 315 | | 91 to 180 days | 290 | 52 | | 181 to 365 days | 163 | 655 | | Over 1 year | 99 | 207 | | **Total** | **10,540** | **7,153** | [Financial Assets and Trade Payables](index=51&type=section&id=Financial%20Assets%20and%20Trade%20Payables) As of June 30, 2025, principal-protected wealth management products at fair value through profit or loss amounted to RMB 10 million, with an expected annual return rate of 1.40% to 2.18%, and total trade payables were RMB 7.738 million, with RMB 6.292 million aged 0-30 days - As of June 30, 2025, principal-protected wealth management products at fair value through profit or loss amounted to **RMB 10,000,000**, with an expected annual return rate of **1.40% to 2.18%**[159](index=159&type=chunk) Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | 0 to 30 days | 6,292 | 5,209 | | 31 to 60 days | 869 | 3,211 | | 61 to 90 days | 49 | 777 | | 91 to 180 days | 333 | 104 | | 181 to 365 days | 81 | 95 | | Over 1 year | 114 | 111 | | **Total** | **7,738** | **9,507** | [Dividends and Share Capital](index=52&type=section&id=Dividends%20and%20Share%20Capital) The board resolved not to declare an interim dividend for the first half of 2025, while a final dividend of RMB 85.632 million for FY2024 was paid, and as of June 30, 2025, the company had 248,714 thousand issued and fully paid shares at HKD 0.01 par value - The Board resolved not to declare any interim dividend for the six months ended June 30, 2025[162](index=162&type=chunk) - The final dividend for FY2024, approved and paid during the interim period, amounted to **RMB 85,632,000**[162](index=162&type=chunk) - As of June 30, 2025, the issued and fully paid share capital consisted of **248,714,000 shares** with a par value of **HKD 0.01 per share**[161](index=161&type=chunk) [Fair Value Measurement of Financial Instruments](index=53&type=section&id=Fair%20Value%20Measurement%20of%20Financial%20Instruments) The Group's financial instruments measured at fair value on a recurring basis primarily consist of Level 3 principal-protected wealth management products, totaling RMB 10 million as of June 30, 2025, with fair value measurements using expected returns as a significant unobservable input - The Group's financial instruments measured at fair value on a recurring basis at the end of the reporting period primarily consist of Level 3 principal-protected wealth management products[164](index=164&type=chunk)[165](index=165&type=chunk) - As of June 30, 2025, the fair value of financial assets at fair value through profit or loss (principal-protected wealth management products) was **RMB 10,000,000**[164](index=164&type=chunk) - Fair value measurement is positively correlated with expected returns, and the discount rate used is derived from expected returns, serving as a significant unobservable input[168](index=168&type=chunk) - As of June 30, 2025, and December 31, 2024, there were no material differences between the carrying amounts and fair values of the Group's financial instruments accounted for at amortized cost[170](index=170&type=chunk) [Acquisition of Additional Interests in a Subsidiary and Contingent Liabilities](index=55&type=section&id=Acquisition%20of%20Additional%20Interests%20in%20a%20Subsidiary%20and%20Contingent%20Liabilities) For the six months ended June 30, 2024, the Group acquired an additional 5% equity in Jiangsu Mujianggu Tourism Development Co., Ltd. for RMB 4.444 million, increasing its stake to 100%, and as of June 30, 2025, the Group had no significant contingent liabilities - For the six months ended June 30, 2024, the Group acquired an additional **5% equity interest** in Jiangsu Mujianggu Tourism Development Co., Ltd. for a cash consideration of **RMB 4,444,000**, increasing its equity interest to **100%**[171](index=171&type=chunk) - As of June 30, 2025, and December 31, 2024, the Group had no significant contingent liabilities[171](index=171&type=chunk) [Capital Commitments and Related Party Transactions](index=55&type=section&id=Capital%20Commitments%20and%20Related%20Party%20Transactions) As of June 30, 2025, the Group had contracted but unprovided capital commitments of approximately RMB 20.558 million for property, plant, and equipment, and total key management personnel remuneration for the period was RMB 2.859 million - As of June 30, 2025, the Group had contracted but unprovided capital commitments of approximately **RMB 20,558,000** for the acquisition of property, plant, and equipment[171](index=171&type=chunk) - The total remuneration for the Group's key management personnel (including amounts paid to the company's directors) for the period was **RMB 2,859,000**[174](index=174&type=chunk) [Accounting Standards Amendments Not Yet Effective](index=56&type=section&id=Accounting%20Standards%20Amendments%20Not%20Yet%20Effective) The HKICPA has issued several amendments not yet effective, which the Group is evaluating, with preliminary conclusions indicating no material impact on the condensed consolidated financial statements - The Hong Kong Institute of Certified Public Accountants has issued several amendments that are not yet effective for the six months ended June 30, 2025, and have not been adopted in these interim financial statements[174](index=174&type=chunk) - The Group is assessing the expected impact of these developments upon initial application, and the conclusion to date is that the adoption of these developments is unlikely to have a material impact on the condensed consolidated financial statements[175](index=175&type=chunk)

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | 截至月份: 2025年8月31日 | | --- | | 新提交 | | 狀態: | 致：香港交易及結算所有限公司 公司名稱: 譚木匠控股有限公司 呈交日期: 2025年9月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00837 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | HKD | | 0.01 | HKD | | 100,000,000 | | 增加 / 減少 (-) | | | 0 | | | | HKD | | | | 本月底結存 | | | 10,000,000,000 | HKD | | 0.01 | HKD | | ...

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: 譚木匠控股有限公司 呈交日期: 2025年9月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00837 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | 10,000,000,000 | | HKD | | 0.01 | HKD | | 100,000,000 | | 增加 / 減少 (-) | | | 0 | | | | HKD | | | | 本月底結存 | | | 10,000,000,000 | HKD | | 0.01 | HKD | | 100,000,000 | 本月底法定 ...

格隆汇8月28日丨谭木匠(00837.HK)公布中期业绩，2025年上半年，公司收益为人民币2.88亿元，同比 增长9.4%；公司拥有人应占溢利 为人民币1.09亿元，同比增长13.2%，每股基本盈利为人民币43.8分。 2025年上半年，线下业务之POS销售完成约人民币4.375亿元，同比2024年同期增长11.9%，包含产品销 售金额、产品销售数量、新建店数、重装店数、活跃会员数、客单价在内的各项业务指标均再次创下历 史新高。2025年上半年，线上业务完成销售人民币1.38亿元，完成半年度目标108%，同比2024年同期 增长12.65%。已完成年度目标56.19%。 ...

Core Viewpoint - The company, Tan Mu Jiang (00837), reported a significant increase in its interim financial performance for the six months ending June 30, 2025, with a notable rise in both revenue and profit attributable to shareholders [1]. Financial Performance - The company achieved revenue of 288 million RMB, representing a year-on-year increase of 9.4% [1]. - Profit attributable to shareholders reached 109 million RMB, which is a 13.2% increase compared to the previous year [1]. - Basic earnings per share were reported at 43.8 cents [1].

Core Viewpoint - The company, Tan Mu Jiang (00837), reported a revenue of 288 million RMB for the six months ending June 30, 2025, reflecting a year-on-year increase of 9.4% [1] - The profit attributable to the owners of the company was 109 million RMB, representing a year-on-year increase of 13.2% [1] - The basic earnings per share were 43.8 cents [1] Financial Performance - Revenue for the period reached 288 million RMB, up 9.4% compared to the previous year [1] - Profit attributable to owners increased to 109 million RMB, marking a 13.2% rise year-on-year [1] - Basic earnings per share stood at 43.8 cents [1]

[Announcement Information and Financial Summary](index=1&type=section&id=Announcement%20Information%20and%20Financial%20Summary) This section provides essential company and reporting period details, along with a high-level overview of the unaudited financial performance for the six months ended June 30, 2025 [Announcement Statement and Company Information](index=1&type=section&id=Announcement%20Statement%20and%20Company%20Information) This section includes the Hong Kong Stock Exchange's disclaimer, company name, registration details, and stock code, confirming the reporting period for the interim results announcement - The company name is **CARPENTER TAN HOLDINGS LIMITED 譚木匠控股有限公司**, stock code **837**, registered in the Cayman Islands[2](index=2&type=chunk) [Financial Summary](index=1&type=section&id=Financial%20Summary) This section presents an unaudited financial summary for the six months ended June 30, 2025, highlighting year-on-year growth across key metrics including revenue, gross profit, profit before tax, profit for the period, and basic earnings per share Financial Summary for the Six Months Ended June 30 | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | Percentage Change | | :--- | :--- | :--- | :--- | | Revenue | 287,886 | 263,082 | 9.4% | | Cost of sales | (110,089) | (100,837) | 9.2% | | Gross profit | 177,797 | 162,245 | 9.6% | | Gross profit margin | 61.8% | 61.7% | 0.1 percentage point | | Profit before tax | 133,366 | 119,182 | 11.9% | | Profit for the period | 109,046 | 96,288 | 13.2% | | Profit attributable to owners of the Company | 109,046 | 96,288 | 13.2% | | Basic earnings per share (RMB cents) | 43.8 | 38.7 | 13.2% | [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section provides the condensed consolidated financial statements, including the statement of profit or loss, statement of profit or loss and other comprehensive income, and statement of financial position, for the reporting period [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) This section displays the condensed consolidated statement of profit or loss for the six months ended June 30, 2025, detailing revenue, costs, various expenses, and profit, showing a **13.2%** year-on-year increase in profit for the period Condensed Consolidated Statement of Profit or Loss (For the six months ended June 30) | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue | 287,886 | 263,082 | | Cost of sales | (110,089) | (100,837) | | Gross profit | 177,797 | 162,245 | | Other income | 22,762 | 21,520 | | Selling and distribution expenses | (46,012) | (43,386) | | Administrative expenses | (17,673) | (18,170) | | Other operating expenses | (3,220) | (2,718) | | Operating profit | 133,654 | 119,491 | | Finance costs | (288) | (309) | | Profit before tax | 133,366 | 119,182 | | Income tax expense | (24,320) | (22,894) | | Profit for the period | 109,046 | 96,288 | [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) This section presents the condensed consolidated statement of profit or loss and other comprehensive income for the six months ended June 30, 2025, indicating a significant increase in total comprehensive income, primarily driven by positive exchange differences Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Profit for the period | 109,046 | 96,288 | | Exchange differences on translation from functional currency to presentation currency | (3,530) | 5,787 | | Exchange differences arising from translation of overseas operations | 9,358 | (7,692) | | Other comprehensive income/(loss) for the period, net of income tax of nil | 5,828 | (1,905) | | Total comprehensive income for the period | 114,874 | 94,383 | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This section provides the condensed consolidated statement of financial position as of June 30, 2025, showing growth in total assets less current liabilities and net assets, with notable increases in unsecured fixed bank deposits and cash and cash equivalents Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Indicator | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | **Non-current assets** | | | | Property, plant and equipment | 139,903 | 132,355 | | Unsecured fixed bank deposits | 306,000 | 218,000 | | **Current assets** | | | | Inventories | 296,535 | 292,498 | | Cash and cash equivalents | 116,530 | 41,714 | | **Current liabilities** | | | | Trade payables | 7,738 | 9,507 | | **Net assets** | 913,201 | 883,959 | [Notes to the Condensed Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the condensed consolidated financial statements, covering general information, accounting policies, judgments, segment reporting, and specific financial line items [1. General Information](index=5&type=section&id=1.%20General%20Information) This section introduces the basic registration information of Carpenter Tan Holdings Limited, including its place of registration, listing exchange, and principal place of business - The company was incorporated in the Cayman Islands on **June 20, 2006**, with shares listed on the Main Board of The Stock Exchange of Hong Kong Limited; its principal place of business is in Wanzhou District, Chongqing, China[10](index=10&type=chunk) [2. Basis of Preparation and Significant Accounting Policies Information](index=5&type=section&id=2.%20Basis%20of%20Preparation%20and%20Significant%20Accounting%20Policies%20Information) This section explains that the interim financial report is prepared in accordance with HKAS 34 and the Listing Rules, noting that the accounting policies adopted are consistent with the previous year's consolidated financial statements, and new revised standards have no significant impact - The interim financial report is prepared in accordance with **Hong Kong Accounting Standard 34** issued by the Hong Kong Institute of Certified Public Accountants and Appendix 16 of the Listing Rules[11](index=11&type=chunk) - The condensed consolidated interim financial statements are prepared on a historical cost basis, except for investment properties measured at fair value and financial assets at fair value through profit or loss[12](index=12&type=chunk) - The application of revised Hong Kong Financial Reporting Standards during the period had no significant impact on the Group's financial position and performance[13](index=13&type=chunk) [3. Accounting Judgements and Estimates Uncertainty](index=6&type=section&id=3.%20Accounting%20Judgements%20and%20Estimates%20Uncertainty) This section states that management made accounting judgments and estimates in preparing the interim financial statements, and the sources of uncertainty for these judgments and estimates are consistent with those described in the previous year's consolidated financial statements - The significant judgments and key sources of estimation uncertainty made by management in preparing the interim financial statements are the same as those described in the previous year's consolidated financial statements[14](index=14&type=chunk) [4. Segment Reporting](index=6&type=section&id=4.%20Segment%20Reporting) This section explains that the company's main business is concentrated in a single segment of manufacturing and selling wooden crafts and accessories, with primary business activities in China, thus no segment and geographical information is presented - Over **90%** of the Group's revenue, results, and assets are derived from the single segment of manufacturing and selling wooden crafts and accessories, hence no segment information is presented[15](index=15&type=chunk) - The Group's revenue and results primarily originate from business activities conducted in China, with overseas business being insignificant, thus no geographical information is provided[15](index=15&type=chunk) - No single external customer transaction equals or exceeds **10%** of the Group's total revenue, so no major customer analysis is provided[16](index=16&type=chunk) [5. Operating Seasonal Factors](index=6&type=section&id=5.%20Operating%20Seasonal%20Factors) This section indicates that the company's sales are subject to seasonal fluctuations, typically higher from March to April and September to December, and lower in July, which is related to peak purchasing before holidays - The Group's sales generally fluctuate due to seasonal factors, with higher sales from March to April and September to December, and lower sales in July[17](index=17&type=chunk) - Seasonal effects are mainly due to increased procurement by franchised stores in preparation for retail peak periods such as Mother's Day, Teacher's Day, National Day, Double Eleven, Christmas, and New Year holidays[17](index=17&type=chunk) [6. Revenue and Other Income](index=7&type=section&id=6.%20Revenue%20and%20Other%20Income) This section analyzes the Group's revenue and other income composition, primarily from goods sales and franchise fees, as well as other income such as government subsidies and VAT refunds - The Group's main business involves designing, manufacturing, and distributing "Carpenter Tan" brand small wooden crafts and accessories; operating a franchised and distribution network primarily in China; and directly selling Group products through retail stores in Hong Kong and China[18](index=18&type=chunk) [6(a) Revenue Details](index=7&type=section&id=6(a)%20Revenue%20Details) For the six months ended June 30, 2025, revenue from goods sales was **RMB 287.593 million**, and franchise fee income was **RMB 293 thousand**, totaling **RMB 287.886 million**, a year-on-year increase of **9.4%** Revenue Details (For the six months ended June 30) | Revenue Category | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Sales of goods | 287,593 | 262,620 | | Franchise fee income | 293 | 462 | | **Total** | **287,886** | **263,082** | [6(b) Other Income Details](index=7&type=section&id=6(b)%20Other%20Income%20Details) For the six months ended June 30, 2025, total other income was **RMB 22.762 million**, a year-on-year increase of **5.8%**, primarily driven by increased government subsidies and China VAT preferential refunds Other Income Details (For the six months ended June 30) | Other Income Category | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Government subsidies | 2,459 | – | | Bank interest income | 1,450 | 5,336 | | Gain on fair value changes | 225 | 25 | | China VAT preferential refunds | 16,412 | 12,298 | | Rental income from investment properties | 1,095 | 2,267 | | Net exchange gain | 15 | 52 | | Others | 1,096 | 1,542 | | **Total** | **22,762** | **21,520** | - In 2025, government subsidies primarily came from the Chongqing Municipal Finance Bureau and Human Resources and Social Security Bureau, aimed at encouraging overseas market promotion and stabilizing employment[19](index=19&type=chunk) [7. Profit Before Tax](index=8&type=section&id=7.%20Profit%20Before%20Tax) This section lists various deductions and inclusions affecting profit before tax, including inventory costs, depreciation, and staff costs, indicating an increase in staff costs Items Affecting Profit Before Tax (For the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Carrying amount of inventories sold | 111,087 | 101,430 | | Inventories (reversal of write-down)/write-down | (998) | (593) | | Cost of inventories | 110,089 | 100,837 | | Depreciation – property, plant and equipment | 3,665 | 2,515 | | Staff costs (including directors' emoluments) | 54,939 | 51,346 | [8. Income Tax](index=8&type=section&id=8.%20Income%20Tax) This section details the composition and calculation basis of income tax, including China corporate income tax, Hong Kong profits tax, and deferred tax, also mentioning the company's tax incentives Income Tax Expense (For the six months ended June 30) | Tax Category | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | China corporate income tax | 18,678 | 19,135 | | Deferred tax | 5,642 | 3,759 | | **Total** | **24,320** | **22,894** | - Chongqing Carpenter Tan Crafts Co., Ltd. enjoys a preferential corporate income tax rate of **15%**, compared to the statutory rate of **25%**[24](index=24&type=chunk) - Carpenter Tan, a wholly-owned subsidiary, is eligible for a double income tax deduction and VAT refund for employing disabled persons[23](index=23&type=chunk) [9. Earnings Per Share](index=10&type=section&id=9.%20Earnings%20Per%20Share) This section provides details on the calculation of basic earnings per share, which was **RMB 43.8 cents** for the six months ended June 30, 2025, a **13.2%** year-on-year increase, with no diluted earnings as there were no potential ordinary shares issued during the period Basic Earnings Per Share Calculation (For the six months ended June 30) | Indicator | 2025 (RMB '000/cents) | 2024 (RMB '000/cents) | | :--- | :--- | :--- | | Profit used for basic earnings per share | 109,046 | 96,288 | | Weighted average number of ordinary shares issued (thousands) | 248,714 | 248,714 | | Basic earnings per share (RMB cents) | 43.8 | 38.7 | - No diluted earnings per share are presented as there were no potential ordinary shares issued during the period[28](index=28&type=chunk) [10. Fixed Assets](index=10&type=section&id=10.%20Fixed%20Assets) This section discloses the acquisition and disposal of fixed assets and the valuation of investment properties, showing a year-on-year decrease in property and equipment acquisitions and no significant difference between the carrying amount and fair value of investment properties - For the six months ended June 30, 2025, the Group's acquisitions of property and equipment amounted to **RMB 11.236 million**, a year-on-year decrease of approximately **50%** (RMB 22.320 million in the same period of 2024)[29](index=29&type=chunk) - Investment properties were not revalued by independent valuers, and the directors believe there is no significant difference between the carrying amount and the fair value as of December 31, 2024[30](index=30&type=chunk) [11. Trade Receivables](index=11&type=section&id=11.%20Trade%20Receivables) This section provides details on trade receivables and their aging analysis, showing an increase in total trade receivables, with most due within **30 days** Trade Receivables and Aging Analysis (As of June 30, 2025) | Indicator | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade receivables from customer contracts | 10,634 | 7,222 | | Less: Provision for credit losses | (94) | (69) | | **Total** | **10,540** | **7,153** | | **Aging Analysis** | | | | 0 to 30 days | 8,551 | 5,617 | | 31 to 60 days | 744 | 799 | | 61 to 90 days | 201 | 315 | | 91 to 180 days | 290 | 52 | | 181 to 365 days | 655 | 163 | | Over 1 year | 99 | 207 | - Customers are generally required to settle orders before product delivery, while reputable customers may be granted credit terms of up to **30 days**[31](index=31&type=chunk) [12. Financial Assets at Fair Value Through Profit or Loss](index=11&type=section&id=12.%20Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) This section discloses financial assets measured at fair value through profit or loss, primarily principal-protected wealth management products issued by licensed Chinese banks, with a significant year-on-year decrease in amount Financial Assets at Fair Value Through Profit or Loss (As of June 30, 2025) | Indicator | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Principal-protected wealth management products | 10,000 | 80,791 | - Financial assets primarily consist of principal-protected wealth management products issued by licensed Chinese banks, with expected annual returns between **1.40%** and **2.18%**, all maturing within one year[33](index=33&type=chunk) [13. Trade Payables](index=12&type=section&id=13.%20Trade%20Payables) This section provides an aging analysis of trade payables, showing a decrease in the total amount, with most settled within **30 days** Aging Analysis of Trade Payables (As of June 30, 2025) | Aging | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | 0 to 30 days | 6,292 | 5,209 | | 31 to 60 days | 869 | 3,211 | | 61 to 90 days | 49 | 777 | | 91 to 180 days | 333 | 104 | | 181 to 365 days | 81 | 95 | | Over 1 year | 114 | 111 | | **Total** | **7,738** | **9,507** | - Suppliers generally grant credit terms of **30 days**[34](index=34&type=chunk) [14. Dividends](index=12&type=section&id=14.%20Dividends) This section discloses the final dividend for the 2024 fiscal year approved and distributed during the reporting period, and the decision not to declare an interim dividend for the first half of 2025 Dividend Distribution (For the six months ended June 30) | Dividend Type | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | 2024 final dividend (HK 36.63 cents per share) | 85,632 | 87,000 (2023 final dividend) | - The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025[36](index=36&type=chunk) [15. Share Capital](index=13&type=section&id=15.%20Share%20Capital) This section provides information on the company's authorized, issued, and fully paid share capital, showing a stable number of ordinary shares Share Capital (As of June 30, 2025) | Share Capital Type | Number of Shares | Amount (HKD) | Equivalent RMB Amount | | :--- | :--- | :--- | :--- | | Authorized ordinary shares (par value HKD 0.01 per share) | 10,000,000,000 | 100,000,000 | 87,926,000 | | Issued and fully paid ordinary shares | 248,714,000 | 2,487,140 | 2,189,160 | [Management Discussion and Analysis](index=14&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's review of the company's operations, performance, and strategic initiatives across various business segments for the reporting period [Management Review](index=14&type=section&id=Management%20Review) Management reviewed the operating objectives, key work directions, and measures for the first half of 2025, including market expansion, product R&D, production efficiency, brand building, new factory construction, disabled employment, and market rights protection, noting good growth in retail performance and sales outbound - In the first half of 2025, the Group focused on annual performance targets, market expansion, new intangible cultural heritage product development, craft technology R&D, brand enhancement, new factory construction, disabled employment, and market rights protection[38](index=38&type=chunk) - The domestic market focused on entering high-quality business districts, shopping malls, and retail spaces, promoting a large-store strategy, with plans to open **200-300 square meter** flagship stores in Beijing, Shanghai, or Guangzhou/Shenzhen first[39](index=39&type=chunk) - Overseas market plans for a North American local warehouse were postponed due to trade wars and tax policies, but the company is still exploring platforms like Sam's Club and Costco, and has initiated trial operations for agency authorization in the UK, with new image stores planned for Hong Kong and Singapore in the second half of the year[40](index=40&type=chunk) - Significant progress was made in intelligent polishing comb teeth and body, and automatic milling and forming technology for comb blanks, entering batch trial production; the first phase of the new factory's northern area infrastructure is largely complete, with the logistics distribution center and raw material preparation workshop to relocate in the second half of the year[41](index=41&type=chunk) - Retail performance and sales outbound achieved good growth in the first half of the year, and the Group's governance remained generally effective and healthy[42](index=42&type=chunk) [Offline Business](index=16&type=section&id=Offline%20Business) Offline business achieved **11.9%** POS sales growth in the first half of 2025, with various business indicators reaching historical highs, focusing on channel expansion, store renovation, and service innovation - For the six months ended June 30, 2025, offline business POS sales reached approximately **RMB 437.5 million**, a year-on-year increase of **11.9%**[43](index=43&type=chunk) - Various business indicators, including product sales amount, quantity, number of new stores, renovated stores, active members, and average transaction value, all reached historical highs[43](index=43&type=chunk) [1. Specialty Store Overview](index=16&type=section&id=1.%20Specialty%20Store%20Overview) As of June 30, 2025, Carpenter Tan's total number of global stores reached **1,287**, an increase of **33** from the end of 2024, with shopping mall stores accounting for **72.54%** Specialty Store Quantity Overview (As of June 30, 2025) | Region | June 30, 2025 (Franchised Stores) | June 30, 2025 (Directly Operated Stores) | December 31, 2024 (Franchised Stores) | December 31, 2024 (Directly Operated Stores) | | :--- | :--- | :--- | :--- | :--- | | Mainland China | 1,278 | 1 | 1,245 | 1 | | Hong Kong | – | 3 | – | 3 | | Other Countries and Regions | 5 | – | 5 | – | | **Total** | **1,283** | **4** | **1,250** | **4** | Distribution of Franchised Stores in Mainland China (As of June 30, 2025) | Store Type | June 30, 2025 (Number) | June 30, 2025 (Proportion) | December 31, 2024 (Number) | December 31, 2024 (Proportion) | | :--- | :--- | :--- | :--- | :--- | | Shopping Malls | 927 | 72.5% | 875 | 70.3% | | Street Stores | 223 | 17.4% | 236 | 19.0% | | Department Stores | 57 | 4.5% | 59 | 4.7% | | Supermarkets | 10 | 0.8% | 12 | 1.0% | | Scenic Spots | 44 | 3.4% | 46 | 3.7% | | Transportation Hubs | 10 | 0.8% | 9 | 0.7% | | Hotels | 2 | 0.2% | 2 | 0.2% | | Others | 5 | 0.4% | 6 | 0.4% | | **Total** | **1,278** | **100.0%** | **1,245** | **100.0%** | [2. Channel Development](index=17&type=section&id=2.%20Channel%20Development) The offline team adjusted its store development strategy to parallel new openings and renovations, with **101** new stores, of which **93.07%** are in shopping malls, with an average area of **21.50㎡**; over **100** stores were renovated to rapidly upgrade store image - The number of new stores reached **101**, with shopping mall stores accounting for **93.07%** and an average store area of **21.50㎡**[48](index=48&type=chunk) - Over **100** stores were renovated, rapidly eliminating or upgrading small, poorly located, or outdated stores[48](index=48&type=chunk) [3. Offline Activities](index=17&type=section&id=3.%20Offline%20Activities) The offline team heavily subsidized regional DP point advertising, totaling **RMB 386,000**, and successfully held "Comb Garden" pop-up brand promotion events in Changsha, Kunming, and Guangzhou, with plans to continue in Nanjing, Hangzhou, and Shenyang in the second half of the year - The offline team provided substantial subsidies for regional DP point advertising, totaling **RMB 386,000**, covering multiple cities and regions[49](index=49&type=chunk) - Successfully held "Comb Garden" pop-up brand promotion events in Changsha, Kunming, and Guangzhou, with plans to continue in Nanjing, Hangzhou, and Shenyang in the second half of the year[49](index=49&type=chunk) [4. Member Services](index=18&type=section&id=4.%20Member%20Services) During the reporting period, Carpenter Tan's membership significantly grew, with **171,917** new members, a year-on-year increase of **34.51%**, bringing the total membership to over **1.4 million** - The cumulative number of new members reached **171,917**, a year-on-year increase of **34.51%** (127,813 in the same period of 2024)[50](index=50&type=chunk) - Carpenter Tan's total backend membership has exceeded **1.4 million**[50](index=50&type=chunk) [5. New Product Launches](index=18&type=section&id=5.%20New%20Product%20Launches) During the reporting period, **27** new products were launched, including intangible cultural heritage craft items, Mother's Day new products, summer new products, and meridian combs, with intangible cultural heritage craft products incorporating cloisonné enamel and lacquerware techniques, combining traditional and modern styles - During the reporting period, three new product distributions were conducted, launching **27** new products, including **10** intangible cultural heritage craft items, **5** Mother's Day new products, **11** summer new products, and **1** meridian comb new product[51](index=51&type=chunk) - Among the intangible cultural heritage craft new products, **5** drew inspiration from cloisonné enamel painting art, and **5** utilized lacquerware techniques, embodying both traditional charm and modern style[51](index=51&type=chunk) [6. Store Image Enhancement](index=19&type=section&id=6.%20Store%20Image%20Enhancement) A total of **199** store designs were initiated, with **168** design proposals completed, of which **86%** adopted the Morandi style; the third-generation store image enhancement work is fully completed, and the Hong Kong designer Lee Wing-shing image store is under construction in Beijing Qinghe MixC - A total of **199** store designs were initiated, with **168** design proposals completed, of which **146** adopted the Morandi style, accounting for **86%**[52](index=52&type=chunk) - Carpenter Tan's third-generation store image enhancement work is fully completed, and the Hong Kong designer Lee Wing-shing image store is under construction in Beijing Qinghe MixC[52](index=52&type=chunk) [7. Offline Business Focus for the Second Half of 2025](index=19&type=section&id=7.%20Offline%20Business%20Focus%20for%20the%20Second%20Half%20of%202025) In the second half of the year, offline business will focus on new retail business training, developing store image design and display standards, building a loyal and efficient franchise team, and improving user feedback processing and service quality - Key focus areas for the second half of the year include conducting new retail business training, implementing store image design and display standards, and building a highly loyal and executive franchise team[53](index=53&type=chunk) - Increase feedback channels and establish improvement mechanisms to address higher demands from users regarding product design, quality, repair services, and combing experience[53](index=53&type=chunk) [Online Business](index=20&type=section&id=Online%20Business) Online business achieved sales of **RMB 138 million** in the first half of 2025, a year-on-year increase of **12.65%**, completing **108%** of the semi-annual target, maintaining steady growth despite fierce competition through innovation and expansion - For the six months ended June 30, 2025, online business achieved sales of **RMB 138 million**, a year-on-year increase of **12.65%**, completing **108%** of the semi-annual target[54](index=54&type=chunk) - Online business maintained steady growth in a fiercely competitive environment by continuously innovating sales methods, diversifying product lines, and improving customer experience[54](index=54&type=chunk) [1. New Platforms and Promotion Methods](index=21&type=section&id=1.%20New%20Platforms%20and%20Promotion%20Methods) Online business now covers **8** mainstream e-commerce platforms, signed a JBP strategic cooperation with Tmall, upgraded the "Follow-up Assistant" new module to recall purchased but un-enrolled members, and conducted live streaming sales with Li Ruotong on Xiaohongshu - Online business now operates on **8** platform channels, covering almost all mainstream traditional and new e-commerce platforms[56](index=56&type=chunk) - Signed JBP strategic cooperation and Q2 store live streaming strategic cooperation with Tmall, upgraded the "Follow-up Assistant" new module to recall purchased but un-enrolled members, sending messages to **182,000 people** and generating **RMB 1.89 million** in payments[56](index=56&type=chunk) - Completed **2** live streaming sales sessions with Li Ruotong on Xiaohongshu, achieving a total exposure of **13.3 million**, total views of **1.576 million**, and payments of **RMB 349,000**[56](index=56&type=chunk) [2. Douyin Channel Expansion](index=21&type=section&id=2.%20Douyin%20Channel%20Expansion) Douyin channel promotion focused on brand culture dissemination, enhancing brand influence and user stickiness through content publishing and cross-platform integration, with significant year-on-year growth in Douyin keyword search index and comprehensive index in the first half of the year - In the first half of the year, Douyin keyword search index increased by **80.26%** year-on-year and **48.15%** month-on-month; the comprehensive keyword index increased by **80.65%** year-on-year and **47.76%** month-on-month[57](index=57&type=chunk) - As of June 30, 2025, the total playback volume across all platform accounts was **249.232 million times**, and the Douyin platform account had **298,000 followers**[57](index=57&type=chunk) [3. On-site and Off-site Content Promotion](index=21&type=section&id=3.%20On-site%20and%20Off-site%20Content%20Promotion) On-site and off-site content promotion continued to output brand culture and emotional marketing content, achieving **RMB 3.083 million** in sales through content guidance in the first half of the year, a **31.3%** year-on-year increase, demonstrating good content conversion effectiveness - In the first half of the year, sales achieved through content guidance amounted to **RMB 3.083 million**, a **31.3%** increase compared to **RMB 2.348 million** in the same period last year[58](index=58&type=chunk) - **81** pieces of content were published on Xiaohongshu off-site, with a total exposure of over **5.75 million times**; **328** pieces of influencer content were published on-site content channels, with a total exposure of over **1.269 million times**[58](index=58&type=chunk) [4. Store Service Enhancement](index=22&type=section&id=4.%20Store%20Service%20Enhancement) By introducing Leyan robot software and Shizai Smart RPA robots, Tmall reception service capabilities and refund processing efficiency were improved, reducing manual response time and increasing Wangwang satisfaction - Utilized Leyan robot software to add new Tmall reception service scenarios and auxiliary evaluation scenarios, enhancing reception service capabilities and alleviating consultation pressure[59](index=59&type=chunk) - Utilized Shizai Smart RPA robots to build order return and refund operation scenarios, improving refund processing efficiency[59](index=59&type=chunk) [5. Bestseller Creation](index=22&type=section&id=5.%20Bestseller%20Creation) The online business team focused on creating bestsellers around four products, with "Hair Care Comb - Cui Ping" and "Lacquer Art Comb - Bear with Bamboo" already standing out as the most promising - "Hair Care Comb - Cui Ping" and "Lacquer Art Comb - Bear with Bamboo" have emerged as the most promising bestseller products after promotional efforts in the first half of the year[60](index=60&type=chunk) [6. Tmall Live Streaming](index=22&type=section&id=6.%20Tmall%20Live%20Streaming) Tmall live streaming platform continued to deepen its efforts, conducting **179** live streams, with a **19.4%** year-on-year increase in "grass-roots" driven sales, and member transactions contributing as high as **68%**, achieving excellent industry performance for brand self-broadcasting - A total of **179** live streams were conducted, totaling **1,417.5 hours**, with "grass-roots" driven sales increasing by **19.4%** year-on-year, and penetration rate rising to **10.6%**[61](index=61&type=chunk) - Added **10,600 new followers** and **17,800 new members**, with member transactions making a significant contribution, accounting for as high as **68%**[61](index=61&type=chunk) [7. E-commerce Venue Optimization](index=22&type=section&id=7.%20E-commerce%20Venue%20Optimization) The online business team re-planned the shipping area, adding conveyor belts and automatic express sorters to improve warehousing operational efficiency, reduce manual errors, and optimize logistics services - Re-planned the shipping area, adding conveyor belt equipment and automatic express sorters to improve warehousing operational efficiency and reduce manual operation errors[62](index=62&type=chunk) [8. Online Business Focus for the Second Half of 2025](index=23&type=section&id=8.%20Online%20Business%20Focus%20for%20the%20Second%20Half%20of%202025) In the second half of the year, online business will strengthen platform communication, provide personalized product offerings, integrate online and offline channels, use digital employees to improve customer conversion rates, and explore AI digital human live streaming and continuous optimization of private domain customer operations - Key focus areas for the second half of the year include strengthening communication with various platforms, providing personalized product offerings, integrating online and offline channels, and utilizing "Follow-up Assistant" digital employees to improve customer conversion rates[63](index=63&type=chunk) - Explore introducing Leyan reception robots to Pinduoduo stores to achieve **24-hour** online service and improve store service ratings[63](index=63&type=chunk) - Explore the feasibility of AI digital human live streaming in stores to reduce costs, achieve **24-hour** uninterrupted live streaming, and enhance interactivity[64](index=64&type=chunk) - Continuously optimize private domain customer operations through adding WeChat enterprise friends, member recruitment, user callbacks, and activity notifications to enhance user loyalty[64](index=64&type=chunk) [Overseas Business](index=25&type=section&id=Overseas%20Business) As of June 30, 2025, overseas offline outbound sales increased by **1.02%** year-on-year, and cross-border e-commerce platform sales increased by **2.6%** year-on-year, but Hong Kong directly operated store sales decreased by **7.11%** year-on-year Overseas Business Sales (For the six months ended June 30, 2025) | Business Type | Sales Amount | Year-on-Year Growth/Decrease | | :--- | :--- | :--- | | Overseas offline outbound sales | RMB 1.812 million | Growth 1.02% | | Cross-border e-commerce platform sales | RMB 453,000 | Growth 2.6% | | Hong Kong directly operated store sales | HKD 2.025 million | Decrease 7.11% | [Overseas Key Work Summary](index=25&type=section&id=Overseas%20Key%20Work%20Summary) Overseas business plans to open directly operated stores in Hong Kong and Singapore, with the Hong Kong store featuring a new design image; the original plan to establish overseas warehouses was postponed due to China-US tariffs; participated in the Las Vegas Consumer Goods & Gift Show in the first half of the year, and will participate in the Tokyo Gift Show in the second half; the US official website is being rebuilt and upgraded - Plans to open **1** directly operated store each in Hong Kong and Singapore, with the Hong Kong store adopting a new design image by the Lee Wing-shing team, expected to open by the end of October[66](index=66&type=chunk) - The original plan to establish overseas warehouse sites was postponed due to China-US tariff issues but will continue to be monitored[66](index=66&type=chunk) - Participated in the Las Vegas Consumer Goods & Gift Show in the first half of the year, and will participate in the **100th Tokyo Gift Show** in the second half[66](index=66&type=chunk) - The US official website (tanmujiang.com) is being rebuilt and upgraded, expected to launch in September[66](index=66&type=chunk) [Creative R&D](index=26&type=section&id=Creative%20R%26D) The creative R&D team explores new product design and development directions in structure, materials, and styles, combining market demand and wood inventory, and has completed multiple key projects, including inserted-tooth hair combs, inlaid combs, mixed-material accessories, and co-branded product development - The creative R&D team, based on analysis of existing product systems and in-depth understanding of market demand, explores new product design and development directions in structure, materials, and styles, considering current wood inventory and processing feasibility[67](index=67&type=chunk) [Creative R&D Team Key Projects](index=26&type=section&id=Creative%20R%26D%20Team%20Key%20Projects) Key projects include **2** launched inserted-tooth hair combs, **4** inlaid combs, **4** mixed-material accessories (carbon fiber, ABS, Nanhong agate, Hetian jade combined with wood), and **13** new products co-branded with Hong Kong illustrators - **2** inserted-tooth hair combs, **4** inlaid combs, and **4** mixed-material accessories (carbon fiber, ABS, Nanhong agate, Hetian jade combined with wood) have been launched[68](index=68&type=chunk) - Co-branded with Hong Kong illustrators Siu Kim-ying and Lee Chi-tat to launch "Family Series" and "Time Series" products and packaging designs, totaling **13** new products[68](index=68&type=chunk) - Developed products specifically for overseas market demand, including Southeast Asian regional products and North American beard combs[68](index=68&type=chunk) - Completed sampling and cost estimation for the full packaging system based on the Lee Wing-shing collaboration series packaging as the main line[68](index=68&type=chunk) [Creative R&D Team Future Work Focus](index=27&type=section&id=Creative%20R%26D%20Team%20Future%20Work%20Focus) Future work will focus on enhancing brand image, exploring new materials, processes, and structural applications, improving the efficiency of self-developed projects, and deeply understanding market demand to create best-selling products - Future work will focus on the "brand image enhancement" goal, including new product R&D, packaging system upgrade design, graphic visual promotion materials, and store image support[71](index=71&type=chunk) - Explore the application of new materials, processes, and structures, improve the efficiency of self-developed project design and implementation, and monitor product system sales dynamics to control costs or increase added value[71](index=71&type=chunk) - Deeply understand market demand, incorporating market feedback into the design and R&D process proactively to create best-selling products[71](index=71&type=chunk) [Production Technology](index=27&type=section&id=Production%20Technology) The production organization team effectively ensured market order supply through multi-skilled positions, workshop collaboration, and equipment additions, with **2.8372 million units** delivered in the first half of the year, and a **10.78%** increase in comprehensive production efficiency per capita working hour - In the first half of the year, actual delivery volume was **2.8372 million units**, a year-on-year decrease of approximately **50,000 units**[69](index=69&type=chunk) - Comprehensive production efficiency per capita working hour increased by **10.78%**[69](index=69&type=chunk) [Craft and Equipment Technology Innovation and Improvement](index=27&type=section&id=Craft%20and%20Equipment%20Technology%20Innovation%20and%20Improvement) The "Carpenter Tan Product Type Testing Database" was completed and put into use; the comb blank automated profiling technology project's prototype equipment manufacturing and functional verification are complete; product surface adhesion improvement efforts are in trial production verification; glue-free inserted-tooth comb structure products are optimized and upgraded for production in the second half; raw material precise processing project is completed, improving material yield; and natural plant dye processing technology for wooden combs is under development - The "Carpenter Tan Product Type Testing Database" construction is complete and in use, providing proactive optimization references for design development and marketing[70](index=70&type=chunk) - The prototype equipment manufacturing and functional verification for the comb blank automated profiling technology project are complete, entering formal production phase[72](index=72&type=chunk) - Glue-free inserted-tooth comb structure products have completed optimization and upgrade of comb teeth and glue-free accessory structures, significantly improving the problem of tooth loss, and will be put into production in the second half of the year[72](index=72&type=chunk) - The raw material precise processing project has passed acceptance, with plate surface quality, thickness dimension accuracy, and processing efficiency indicators all met, improving material yield[72](index=72&type=chunk) [Logistics Distribution and After-Sales Repair](index=28&type=section&id=Logistics%20Distribution%20and%20After-Sales%20Repair) The logistics distribution team completed **3.0337 million units** of delivery and shipment in the first half of the year, a year-on-year increase of **9.79%**, while after-sales repair work completed **156,357 units**, a year-on-year increase of **14.66%**, with continuous improvements to the repair quality assurance system - The logistics distribution team completed a total of **3.0337 million units** of production, delivery, and shipment in the first half of the year, a year-on-year increase of **9.79%**[73](index=73&type=chunk) - After-sales repair work completed a total of **156,357 units**, a year-on-year increase of **14.66%**[73](index=73&type=chunk) [After-Sales Repair Quality Assurance Measures](index=29&type=section&id=After-Sales%20Repair%20Quality%20Assurance%20Measures) The repair station continuously improves its repair quality assurance system by starting from the source, strengthening employee skill enhancement, increasing post-repair inspection efforts, updating the "Specialty Store Return, Exchange, and Repair Service" form, and conducting irregular inspections of authorized repair stations - The repair station improves repair quality assurance by carefully inspecting repaired items, strengthening employee skill enhancement, increasing post-repair inspection efforts, and updating the "Specialty Store Return, Exchange, and Repair Service" form[75](index=75&type=chunk) - Irregular inspections are conducted on the repair technology and quality of authorized repair stations, with authorization potentially revoked for those receiving valid complaints for **2** consecutive months[75](index=75&type=chunk) [Brand Building](index=30&type=section&id=Brand%20Building) In brand building, the "Comb Garden" pop-up event and the 9th "Beauty of Combs and Adornments • Carpenter Tan Design Competition" were successfully held, and multiple awards were received, continuously enhancing brand awareness and influence - Successfully held the "Comb Garden" themed pop-up event, based on "nature and emotion," touring Changsha, Kunming, and Guangzhou, receiving widespread acclaim[76](index=76&type=chunk) - The 9th "Beauty of Combs and Adornments • Carpenter Tan Design Competition" concluded successfully, themed "Beauty of Humanity. Design Symbiosis," receiving **528** pieces (sets) of comb and accessory works[77](index=77&type=chunk) ["Comb Garden" Theme Event](index=30&type=section&id=Comb%20Garden%20Theme%20Event) The "Comb Garden" theme event debuted with a new image, creating a warm and healing atmosphere through four core sections: raw wood material display, classic works exhibition, wooden comb making experience, and combing experience, receiving high praise from the audience - The "Comb Garden" event featured four core sections: raw wood material display, classic works exhibition, wooden comb making experience, and combing experience, creating a "garden" atmosphere[76](index=76&type=chunk) - The event specially featured emotional cards and matching packaging themed "family affection, friendship, love, and self-love," imbuing wooden combs with emotional significance[76](index=76&type=chunk) ["Beauty of Combs and Adornments • Carpenter Tan Design Competition"](index=30&type=section&id=Beauty%20of%20Combs%20and%20Adornments%20•%20Carpenter%20Tan%20Design%20Competition) The 9th Design Competition, themed "Beauty of Humanity. Design Symbiosis," attracted wide participation and collaborated with multiple universities to host themed lectures, building a bridge for school-enterprise cooperation - The 9th "Beauty of Combs and Adornments • Carpenter Tan Design Competition," themed "Beauty of Humanity. Design Symbiosis," received **528** pieces (sets) of comb and accessory works[77](index=77&type=chunk) - During the competition, themed lectures were held with Guangzhou Academy of Fine Arts, Zhengzhou University of Light Industry, and Sichuan Fine Arts Institute, building a bridge for school-enterprise cooperation and brand communication with young groups[77](index=77&type=chunk) [Brand Honors](index=31&type=section&id=Brand%20Honors) During the reporting period, Carpenter Tan received multiple brand honors, including an Excellence Award at the "Zijin Award" Cultural and Creative Design Competition and a Silver Award at the China Tourism Commodity Competition, and was recognized as a Chongqing Municipal Excellent Industrial Design Center - Carpenter Tan's "Comb Rhyme Landscape" series of wooden combs received an Excellence Award in the Cultural and Creative Product Comprehensive Competition at the **11th "Zijin Award" Cultural and Creative Design Competition** for its unique cultural connotation and artistic design[79](index=79&type=chunk) - The "Customized Gift Box Chongqing Impression" product won a **Silver Award** at the **2025 China Tourism Commodity Competition**[80](index=80&type=chunk) - Chongqing Carpenter Tan Crafts Co., Ltd.'s Intangible Cultural Heritage Comb and Hairpin Industrial Design Center was recognized as a **Chongqing Municipal Excellent Industrial Design Center**[80](index=80&type=chunk) [Human Resources and Comprehensive Governance](index=31&type=section&id=Human%20Resources%20and%20Comprehensive%20Governance) The company adheres to the governance spirit of "honesty and kindness," upholds core values, establishes fair market expansion mechanisms, insists on brandism, and continuously promotes internal management, market rights protection, disabled employment, and public welfare activities - The Group adheres to the core values of "Honesty, Labor, Happiness" and the moral standards of "Kindness, Humility, Craftsmanship"[82](index=82&type=chunk) - Insists on long-term brandism – no price wars, no discounts, no "lying flat," no active participation in and timely removal, delisting, and investigation of disguised price marketing behaviors[82](index=82&type=chunk) [Company Governance Policy and Core Values](index=31&type=section&id=Company%20Governance%20Policy%20and%20Core%20Values) The Chairman reiterated the "honesty and kindness" requirements for conduct, clarified adherence to the core values of "Honesty, Labor, Happiness" and the moral standards of "Kindness, Humility, Craftsmanship," established fair market expansion mechanisms, and insisted on brandism - The Chairman proposed "honesty and kindness" as requirements for conduct, adhering to the core values of "Honesty, Labor, Happiness" and the moral standards of "Kindness, Humility, Craftsmanship"[82](index=82&type=chunk) - Established a fair market expansion mechanism, breaking down territorialism to achieve sufficient, appropriate, healthy competition and harmonious development[82](index=82&type=chunk) - Insists on long-term brandism, avoiding price wars and discounts, deeply cultivating the brand, and empowering it with culture[82](index=82&type=chunk) [Internal Management and Market Rights Protection](index=32&type=section&id=Internal%20Management%20and%20Market%20Rights%20Protection) Adhering to the governance spirit of "honesty and kindness, inclusive but not indulgent," the company internally investigated and issued **10** notices of criticism in the first half of the year, and imposed penalties and store closures on non-compliant specialty stores; in market rights protection, **23** cases of violations were collected, resulting in **RMB 268,500** in compensation - In the first half of the year, **4** internal investigations resulted in **10** notices of criticism, and non-compliant specialty stores were penalized with deductions from their reputation deposits and store closures[83](index=83&type=chunk) - In the first half of the year, **23** cases of violations were collected, **22** cases had evidence collected and secured, resulting in **RMB 268,500** in compensation[84](index=84&type=chunk) - Continuously encouraged employees to submit reasonable improvement suggestions, receiving **443** in the first half, adopting **151**, and implementing **94**[84](index=84&type=chunk) [Intellectual Property and Safety Production](index=32&type=section&id=Intellectual%20Property%20and%20Safety%20Production) As of June 30, 2025, the company holds **765** valid trademarks and **121** valid patents; the company insists on quarterly safety production meetings and semi-annual fire safety drills, but two production safety accidents occurred in the first half of the year - As of June 30, 2025, the Group holds **765** valid trademarks (including **384** domestic registered trademarks under Carpenter Tan, **128** registered trademarks in Hong Kong, Macau, Taiwan, and overseas; **233** domestic registered trademarks under Mujian Valley, **20** registered trademarks in Hong Kong, Macau, Taiwan, and overseas)[85](index=85&type=chunk) - The Group holds a total of **121** valid patents: **16** invention patents, **55** utility model patents, and **50** design patents[86](index=86&type=chunk) - Two production safety accidents occurred in the first half of the year, involving employees working at height without safety ropes and slipping while retrieving materials, resulting in falls and injuries[86](index=86&type=chunk) [Disabled Employment and Public Welfare Activities](index=33&type=section&id=Disabled%20Employment%20and%20Public%20Welfare%20Activities) The company continues to promote employment for disabled persons, improve accessibility facilities, with a net increase of **10** disabled employees in the first half of the year, totaling **357**, and actively carries out public welfare activities - Continuously committed to promoting and safeguarding employment for disabled persons, and constantly improving rehabilitation venues and facilities for disabled persons[87](index=87&type=chunk) - In the first half of the year, there was a net increase of **10** disabled employees, bringing the current total to **357** disabled employees[87](index=87&type=chunk) - Continuously carried out public welfare activities, including visiting local nursing homes and special education schools[87](index=87&type=chunk) [Financial Review](index=34&type=section&id=Financial%20Review) This section provides a detailed financial review of the company's performance for the reporting period, analyzing key financial indicators and their drivers [1. Revenue](index=34&type=section&id=1.%20Revenue) For the six months ended June 30, 2025, the Group's revenue was **RMB 287.886 million**, a year-on-year increase of **9.4%**, primarily due to market demand recovery, with combined gift boxes being the main income source at **91.7%** Revenue Composition (For the six months ended June 30) | Sales Category | 2025 (RMB '000) | Proportion | 2024 (RMB '000) | Proportion | | :--- | :--- | :--- | :--- | :--- | | Combs | 21,134 | 7.3% | 20,201 | 7.7% | | Mirrors | 230 | 0.1% | 267 | 0.1% | | Combined gift boxes | 264,014 | 91.7% | 240,437 | 91.3% | | Other accessories | 2,215 | 0.8% | 1,715 | 0.7% | | Franchise fee income | 293 | 0.1% | 462 | 0.2% | | **Total** | **287,886** | **100.0%** | **263,082** | **100.0%** | - Revenue increased by **9.4%**, primarily due to the gradual recovery of market demand during the reporting period[89](index=89&type=chunk) [2. Cost of Sales](index=34&type=section&id=2.%20Cost%20of%20Sales) For the six months ended June 30, 2025, the cost of sales was **RMB 110.089 million**, a year-on-year increase of **9.2%**, primarily related to increased sales volume and changes in product mix - Cost of sales was **RMB 110.089 million**, a year-on-year increase of **9.2%** (RMB 100.837 million in the same period of 2024)[90](index=90&type=chunk) - The increase in cost of sales was mainly due to the increase in sales volume and changes in the sales product mix during the reporting period[90](index=90&type=chunk) [3. Gross Profit and Gross Profit Margin](index=34&type=section&id=3.%20Gross%20Profit%20and%20Gross%20Profit%20Margin) For the six months ended June 30, 2025, gross profit was **RMB 177.797 million**, a year-on-year increase of **9.6%**, with the gross profit margin rising from **61.7%** in 2024 to **61.8%** in 2025, mainly due to a shift in sales mix towards higher-margin products - Gross profit was **RMB 177.797 million**, a year-on-year increase of **9.6%** (RMB 162.245 million in the same period of 2024)[91](index=91&type=chunk) - The gross profit margin increased from **61.7%** in 2024 to **61.8%** in 2025, mainly due to a shift in the sales mix towards products with higher gross profit margins[91](index=91&type=chunk) [4. Other Income](index=35&type=section&id=4.%20Other%20Income) For the six months ended June 30, 2025, other income was **RMB 22.762 million**, a year-on-year increase of **5.8%**, primarily driven by increased China VAT preferential refunds and government subsidies - Other income was **RMB 22.762 million**, a year-on-year increase of **5.8%** (RMB 21.520 million in the same period of 2024)[92](index=92&type=chunk) - The increase mainly came from increased China VAT preferential refunds and government subsidies[92](index=92&type=chunk) [5. Selling and Distribution Expenses](index=35&type=section&id=5.%20Selling%20and%20Distribution%20Expenses) For the six months ended June 30, 2025, selling and distribution expenses were **RMB 46.012 million**, a year-on-year increase of **6.1%**, primarily due to increased advertising, transportation, and staff costs - Selling and distribution expenses were **RMB 46.012 million**, a year-on-year increase of **6.1%** (RMB 43.386 million in the same period of 2024)[93](index=93&type=chunk) - The increase mainly resulted from increased advertising expenses, transportation expenses, and staff costs[93](index=93&type=chunk) [6. Administrative Expenses](index=35&type=section&id=6.%20Administrative%20Expenses) For the six months ended June 30, 2025, administrative expenses were **RMB 17.673 million**, a year-on-year decrease of **2.7%**, primarily due to reduced consulting fees - Administrative expenses were **RMB 17.673 million**, a year-on-year decrease of **2.7%** (RMB 18.170 million in the same period of 2024)[94](index=94&type=chunk) - The main decrease came from reduced consulting fees[94](index=94&type=chunk) [7. Operating Profit](index=35&type=section&id=7.%20Operating%20Profit) For the six months ended June 30, 2025, operating profit was **RMB 133.654 million**, a year-on-year increase of **11.9%**, primarily attributable to increased gross profit - Operating profit was **RMB 133.654 million**, a year-on-year increase of **11.9%** (RMB 119.491 million in the same period of 2024)[95](index=95&type=chunk) - The increase in operating profit was mainly attributable to an increase in gross profit of approximately **RMB 15.552 million**[95](index=95&type=chunk) [8. Finance Costs](index=35&type=section&id=8.%20Finance%20Costs) For the six months ended June 30, 2025, finance costs were **RMB 288,000**, a slight year-on-year decrease, primarily arising from the adoption of HKFRS 16, with no bank loan interest expenses during the period - Finance costs were **RMB 288,000** (RMB 309,000 in the same period of 2024), primarily arising from the adoption of HKFRS 16[96](index=96&type=chunk) - The Group had no bank loans during the reporting period and for the six months ended June 30, 2024, thus no interest expenses[96](index=96&type=chunk) [9. Profit Before Tax](index=36&type=section&id=9.%20Profit%20Before%20Tax) For the six months ended June 30, 2025, profit before tax was **RMB 133.366 million**, a year-on-year increase of **11.9%**, primarily driven by increased operating profit - Profit before tax was **RMB 133.366 million**, a year-on-year increase of **11.9%** (RMB 119.182 million in the same period of 2024)[97](index=97&type=chunk) - The increase in profit before tax was mainly attributable to an increase in operating profit of approximately **RMB 14.163 million** during the reporting period[97](index=97&type=chunk) [10. Income Tax Expense](index=36&type=section&id=10.%20Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense was **RMB 24.320 million**, a year-on-year increase of **6.2%**, with the effective tax rate decreasing from **19.2%** to **18.2%** - Income tax expense was **RMB 24.320 million**, a year-on-year increase of **6.2%** (RMB 22.894 million in the same period of 2024)[98](index=98&type=chunk) - The effective tax rate decreased by **1.0 percentage point** from **19.2%** in the same period of 2024 to **18.2%**[98](index=98&type=chunk) [11. Profit for the Period](index=36&type=section&id=11.%20Profit%20for%20the%20Period) For the six months ended June 30, 2025, profit for the period was **RMB 109.046 million**, a year-on-year increase of **13.2%**, primarily due to the combined effect of the aforementioned financial factors - Profit for the period was **RMB 109.046 million**, a year-on-year increase of **13.2%** (RMB 96.288 million in the same period of 2024)[99](index=99&type=chunk) [12. Liquidity and Capital Resources](index=36&type=section&id=12.%20Liquidity%20and%20Capital%20Resources) The company primarily meets its funding needs with cash generated from operations, had no bank loans during the period, and the directors believe it has sufficient working capital; as of June 30, 2025, cash and bank balances were **RMB 116.530 million**, a significant increase from the end of 2024 - The Group primarily meets its working capital needs with cash generated from operations and had no bank loans during the period[100](index=100&type=chunk) - As of June 30, 2025, cash and bank balances were **RMB 116.530 million** (RMB 41.714 million as of December 31, 2024), primarily from operating income[100](index=100&type=chunk) [13. Cash Flow](index=37&type=section&id=13.%20Cash%20Flow) During the reporting period, cash and cash equivalents increased by **RMB 74.816 million**, primarily contributed by net cash from operating activities and net cash from investing activities, partially offset by net cash used in financing activities - During the reporting period, the Group's cash and cash equivalents increased by approximately **RMB 74.816 million**[101](index=101&type=chunk) - Net cash generated from operating activities was approximately **RMB 98.627 million**; net cash generated from investing activities was approximately **RMB 56.796 million**; net cash used in financing activities was approximately **RMB 86.435 million**[101](index=101&type=chunk) [14. Capital Structure](index=37&type=section&id=14.%20Capital%20Structure) As of June 30, 2025, the company had no bank loans, rendering the debt-to-equity ratio meaningless, and no pledged assets; capital expenditure significantly decreased year-on-year - As of June 30, 2025, and during the reporting period, the Group had no bank loans, making the calculation of the debt-to-equity ratio meaningless[102](index=102&type=chunk)[103](index=103&type=chunk) - As of June 30, 2025, the Group had no assets pledged to banks[104](index=104&type=chunk) - Capital expenditure was **RMB 11.236 million**, a significant year-on-year decrease (RMB 22.320 million in the same period of 2024)[105](index=105&type=chunk) - The Group's main businesses use RMB and HKD as functional and operating currencies, exposing the Group to foreign exchange risks arising from RMB and HKD, but no significant risks from other exchange rate fluctuations[106](index=106&type=chunk) [15. Contingent Liabilities, Legal and Potential Proceedings](index=38&type=section&id=15.%20Contingent%20Liabilities,%20Legal%20and%20Potential%20Proceedings) The company has a property in Jurong City, Jiangsu Province, for which ownership certificates have not yet been obtained, and a lawsuit has been filed against the developer, who has entered liquidation; however, management assesses that the liquidator is likely to complete the issuance of ownership certificates, with no significant adverse impact - The company has a property in Jurong City, Jiangsu Province, with a carrying amount of approximately **RMB 22.735 million**, for which ownership certificates have not yet been obtained, and a lawsuit has been filed against the developer[107](index=107&type=chunk) - The developer has entered liquidation, but management assesses that the liquidator is likely to continue executing the sale and purchase agreement and complete the issuance of ownership certificates, thus not causing any significant adverse impact on the Group's business operations and financial position[107](index=107&type=chunk) [16. Material Acquisitions and Disposals](index=38&type=section&id=16.%20Material%20Acquisitions%20and%20Disposals) For the six months ended June 30, 2025, the Group did not undertake any material acquisitions or disposals - For the six months ended June 30, 2025, the Group did not undertake any material acquisitions or disposals[108](index=108&type=chunk) [17. Going Concern](index=38&type=section&id=17.%20Going%20Concern) Based on its current financial position and available financing, the directors believe the company has sufficient financial resources to continue as a going concern for the foreseeable future - The Group has sufficient financial resources to continue operating for the foreseeable future, and therefore, the going concern basis has been adopted in the preparation of the financial report[109](index=109&type=chunk) [18. Major Investments Held](index=38&type=section&id=18.%20Major%20Investments%20Held) As of June 30, 2025, investment properties had a carrying amount of approximately **RMB 84.1 million**, were not revalued during the period, and the directors believe there is no significant difference between the carrying amount and fair value, with no purchases or disposals of investment properties - Investment properties had a carrying amount of approximately **RMB 84.1 million**, were not revalued during the period, and the directors believe there is no significant difference between the carrying amount and the fair value estimated by independent qualified professional valuers as of December 31, 2024[110](index=110&type=chunk) - During the reporting period, the Group neither purchased nor disposed of any investment properties[110](index=110&type=chunk) [Future Outlook](index=39&type=section&id=Future%20Outlook) This section outlines the company's strategic priorities and key initiatives planned for the second half of 2025, focusing on human resources, training, and operational enhancements [Human Resources and Training](index=39&type=section&id=Human%20Resources%20and%20Training) As of June 30, 2025, the Group employed **1,007** staff, continued to provide employment opportunities for disabled persons, and enhanced employee skills and sense of belonging through various training forms, with an increase in total remuneration - As of June 30, 2025, the Group employed a total of **1,007** staff in mainland China, Hong Kong, and overseas regions[112](index=112&type=chunk) - Continuously committed to providing employment opportunities for disabled persons and enhancing employee work skills, marketing strategies, and sense of belonging through various training forms[112](index=112&type=chunk) - For the six months ended June 30, 2025, the total remuneration paid by the Group to employees was approximately **RMB 54.939 million** (2024: ap

Group 1 - The company, Tan Mu Jiang (00837.HK), has announced a board meeting scheduled for August 28, 2025, to review and approve the unaudited interim results for the six months ending June 30, 2025, and to consider any proposed interim dividend, if applicable [1]