第 1 頁 共 11 頁 v 1.1.1 | 3. 股份分類 | 普通股 | 股份類別 | 其他類別 (請註明) | 於香港聯交所上市 (註1) | 否 | | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | N/A | 說明 | 外資股 | | | | 2. 股份分類 | 普通股 | 股份類別 | 其他類別 (請註明) | | 於香港聯交所上市 (註1) | | 否 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | N/A | 說明 | 內資股 | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 2,500,000 | RMB | | 0.1 RMB | | 250,000 | | 增加 / 減少 (-) | | | 0 | | | RMB | | 0 | | 本月底結存 | | | 2,500,000 | RMB | | 0.1 RMB | | 250,000 | | 1. ...

[Condensed Consolidated Financial Statements](index=3&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's revenue decreased by 13% year-on-year to RMB 272,278 thousand, with gross profit falling to RMB 13,151 thousand, and loss for the period expanding to RMB 25,987 thousand, resulting in basic and diluted loss per share of RMB (0.049) Condensed Consolidated Statement of Comprehensive Income Key Data (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 272,278 | 313,802 | -13.23% | | Cost of sales | (259,127) | (297,815) | -12.99% | | Gross profit | 13,151 | 15,987 | -17.61% | | Operating loss | (19,485) | (14,572) | 33.71% | | Loss and total comprehensive loss for the period | (25,987) | (18,576) | 39.89% | | Loss per share (basic and diluted) | (0.049) | (0.035) | 40.00% | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets were RMB 1,229,695 thousand, a slight decrease from the end of 2024, with total equity at RMB 557,352 thousand and total liabilities increasing to RMB 672,343 thousand, primarily due to higher current liabilities Condensed Consolidated Statement of Financial Position Key Data (As of June 30) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total assets | 1,229,695 | 1,249,758 | -1.61% | | Non-current assets | 938,140 | 950,965 | -1.35% | | Current assets | 291,555 | 298,793 | -2.42% | | Total equity | 557,352 | 583,339 | -4.59% | | Total liabilities | 672,343 | 666,419 | 0.89% | | Current liabilities | 584,477 | 604,551 | -3.29% | | Non-current liabilities | 87,866 | 61,868 | 42.02% | [Condensed Consolidated Statement of Changes in Equity](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, total equity attributable to owners of the company decreased from RMB 583,446 thousand at the beginning of the year to RMB 557,656 thousand, primarily due to a loss for the period of RMB 25,790 thousand Total Equity Attributable to Owners of the Company Changes (For the six months ended June 30) | Indicator | June 30, 2025 (RMB thousands) | January 1, 2025 (RMB thousands) | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Total equity attributable to owners of the Company | 557,656 | 583,446 | (25,790) | | Loss for the period | (25,790) | - | - | | Non-controlling interests | (304) | (107) | (197) | [Condensed Consolidated Statement of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash generated from operating activities was RMB 15,363 thousand, a positive shift from a net outflow in the prior period, while net cash used in investing activities significantly decreased, and financing activities shifted from net generation to net usage, resulting in a net increase in cash and cash equivalents of RMB 417 thousand Condensed Consolidated Statement of Cash Flows Key Data (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Net cash generated from / (used in) operating activities | 15,363 | (26,585) | 41,948 | | Net cash used in investing activities | (1,130) | (42,820) | 41,690 | | Net cash (used in) / generated from financing activities | (13,816) | 40,892 | (54,708) | | Net increase / (decrease) in cash and cash equivalents | 417 | (28,513) | 28,930 | | Cash and cash equivalents at June 30 | 58,581 | 62,029 | (3,448) | [Notes to the Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [1 General Information](index=8&type=section&id=1%20General%20Information) Changmao Biochemical Engineering Company Limited primarily engages in the production and sale of organic acid products, with its H shares listed on the Main Board of the Hong Kong Stock Exchange since June 28, 2013, and the condensed consolidated interim financial statements are presented in RMB - The company's principal business is the production and sale of organic acid products[8](index=8&type=chunk) - H shares were transferred to the Main Board of the Hong Kong Stock Exchange on June 28, 2013[8](index=8&type=chunk) [2 Basis of Preparation and Accounting Policies](index=8&type=section&id=2%20Basis%20of%20Preparation%20and%20Accounting%20Policies) The condensed consolidated interim financial statements are prepared in accordance with HKAS 34 and are consistent with the accounting policies of the 2024 annual financial statements, though the Group faces significant going concern uncertainties due to net loss, net current liabilities, and a subsidiary's failure to meet bank loan financial covenants, for which management has developed mitigation plans - For the six months ended June 30, 2025, the Group recorded a **net loss of RMB 25,987,000**[12](index=12&type=chunk) - The Group has **net current liabilities of RMB 292,922,000**, current bank borrowings of RMB 487,961,000, and cash and bank balances of RMB 58,581,000[12](index=12&type=chunk) - A subsidiary failed to meet the asset-liability ratio financial covenants for two project loans totaling RMB 245,020,000, resulting in the reclassification of **RMB 168,860,000** of non-current portions as current liabilities[12](index=12&type=chunk) - Management has formulated several mitigation measures, including negotiating with banks, utilizing unutilized revolving bank facilities, consolidating production lines to reduce costs, and controlling administrative expenses and capital expenditures to support going concern[13](index=13&type=chunk)[14](index=14&type=chunk) [Going Concern Basis](index=8&type=section&id=Going%20Concern%20Basis) The company faces significant going concern uncertainties due to a loss for the period, high net current liabilities, and a subsidiary's failure to meet bank loan financial covenants, but management has proposed several mitigation measures, including bank negotiations, utilizing unutilized credit facilities, cost control, and new production line commissioning, to ensure sufficient working capital for the next 12 months - The Group recorded a **net loss of RMB 25,987,000** and **net current liabilities of RMB 292,922,000**[12](index=12&type=chunk) - A subsidiary's failure to meet the asset-liability ratio requirement for project loans led to **RMB 168,860,000** of non-current loans being reclassified as current liabilities[12](index=12&type=chunk) - Management plans to negotiate with banks, utilize **RMB 112,362,000** in unutilized revolving bank facilities, integrate production lines to reduce costs, control administrative expenses and capital expenditures to alleviate liquidity pressure[14](index=14&type=chunk) [2.1 New and Revised Standards](index=10&type=section&id=2.1%20New%20and%20Revised%20Standards) New Hong Kong Financial Reporting Standards effective from July 1, 2025, are not expected to have a significant impact on the Group's financial statements for the current and future periods - New Hong Kong Financial Reporting Standards have no significant impact on the accounting policies of the Group's condensed consolidated interim financial statements[11](index=11&type=chunk) [3 Estimates](index=11&type=section&id=3%20Estimates) The preparation of interim financial information involves management's judgments, estimates, and assumptions, with key sources of estimation uncertainty being the same as those applied in the 2024 annual consolidated financial statements - Key sources of significant judgments and estimation uncertainties made by management in preparing the interim financial information are the same as those in the 2024 annual financial statements[18](index=18&type=chunk) [4 Financial Risk Management](index=11&type=section&id=4%20Financial%20Risk%20Management) The Group is exposed to foreign currency, credit, liquidity, and interest rate risks, with no significant changes in risk management policies since year-end, and related information should be read in conjunction with the 2024 annual consolidated financial statements - The Group's activities are exposed to foreign currency risk, credit risk, liquidity risk, and cash flow and fair value interest rate risk[19](index=19&type=chunk) - There have been no significant changes in risk management policies since year-end[20](index=20&type=chunk) [5 Revenue and Segment Information](index=12&type=section&id=5%20Revenue%20and%20Segment%20Information) The Group primarily engages in the production and sale of organic acid products, which management considers a single operating segment, with Mainland China contributing the highest proportion of revenue for the six months ended June 30, 2025, despite an overall year-on-year revenue decrease - The Group is principally engaged in the production and sale of organic acid products and is presented as one operating segment[21](index=21&type=chunk) Sales Revenue by Region (For the six months ended June 30) | Region | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Mainland China | 196,143 | 222,042 | -11.66% | | Asia Pacific | 34,287 | 41,472 | -17.32% | | Europe | 30,713 | 34,902 | -11.99% | | Americas | 7,173 | 9,650 | -25.77% | | Other regions | 3,962 | 5,736 | -30.93% | | **Total** | **272,278** | **313,802** | **-13.23%** | [6 Other Income](index=13&type=section&id=6%20Other%20Income) For the six months ended June 30, 2025, total other income was RMB 3,282 thousand, a decrease from RMB 5,507 thousand in the prior period, mainly due to a significant reduction in income from the sale of scrap materials Other Income Details (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Sale of scrap materials | 4 | 1,704 | (1,700) | | Government grants | 2,472 | 2,965 | (493) | | Others | 806 | 838 | (32) | | **Total** | **3,282** | **5,507** | **(2,225)** | [7 Other Gains, Net](index=13&type=section&id=7%20Other%20Gains%2C%20Net) For the six months ended June 30, 2025, net other gains were RMB 496 thousand, a significant decrease from RMB 1,844 thousand in the prior period, primarily impacted by a reduction in net exchange gains Other Gains, Net Details (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Fair value gains on financial assets at fair value through profit or loss | 10 | 32 | (22) | | Net exchange gains | 575 | 1,812 | (1,237) | | Others | (89) | – | (89) | | **Total** | **496** | **1,844** | **(1,348)** | [8 Finance Costs, Net](index=13&type=section&id=8%20Finance%20Costs%2C%20Net) For the six months ended June 30, 2025, net finance costs increased to RMB 5,754 thousand, mainly due to a decrease in capitalized interest on bank borrowings, leading to higher actual interest expenses Finance Costs, Net Details (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Interest on bank borrowings | 9,903 | 10,678 | (775) | | Interest paid / payable on lease liabilities | 22 | 46 | (24) | | Less: Capitalized for qualifying assets | (3,882) | (7,319) | 3,437 | | Interest income from bank deposits | (289) | (535) | 246 | | **Finance costs, net** | **5,754** | **2,870** | **2,884** | [9 Loss Before Income Tax](index=14&type=section&id=9%20Loss%20Before%20Income%20Tax) For the six months ended June 30, 2025, loss before income tax expanded to RMB 25,239 thousand compared to the prior period, with depreciation expenses increasing while amortization of patent rights and right-of-use assets remained stable Loss Before Income Tax Composition (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Loss before income tax | (25,239) | (17,442) | (7,797) | | Amortisation of patent rights | 66 | 66 | 0 | | Amortisation of right-of-use assets | 1,526 | 1,526 | 0 | | Depreciation | 23,153 | 20,508 | 2,645 | [10 Income Tax Expense](index=14&type=section&id=10%20Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense was RMB 748 thousand, a decrease from the prior period, as the company benefits from a 15% preferential tax rate for high-tech enterprises and an additional deduction for R&D expenses - The company qualifies as a high-tech enterprise, enjoying a **preferential corporate income tax rate of 15%**[26](index=26&type=chunk) - The Group can claim a **200% tax deduction** (super deduction) for eligible R&D expenses when determining assessable profits[28](index=28&type=chunk) Income Tax Expense Details (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Current income tax | 640 | 632 | 8 | | Deferred income tax | 108 | 502 | (394) | | **Income tax expense** | **748** | **1,134** | **(386)** | [11 Loss Per Share](index=15&type=section&id=11%20Loss%20Per%20Share) For the six months ended June 30, 2025, basic and diluted loss per share attributable to owners of the company expanded to RMB (0.049), compared to RMB (0.035) in the prior period, primarily due to an increased loss for the period Loss Per Share Data (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Loss attributable to owners of the Company (RMB thousands) | 25,790 | 18,786 | | Weighted average number of ordinary shares in issue (shares) | 529,700,000 | 529,700,000 | | Loss per share (basic and diluted) (RMB) | (0.049) | (0.035) | [12 Dividends](index=16&type=section&id=12%20Dividends) The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025, consistent with the prior period - The Directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025[31](index=31&type=chunk) [13 Patent Rights](index=16&type=section&id=13%20Patent%20Rights) As of June 30, 2025, the net book value of patent rights was RMB 440 thousand, a decrease from RMB 506 thousand at the beginning of the year, primarily due to amortization expenses Patent Rights Net Book Value Changes | Item | RMB thousands | | :--- | :--- | | Net book value at January 1, 2025 | 506 | | Amortisation | (66) | | Net book value at June 30, 2025 | 440 | [14 Capital Expenditure](index=16&type=section&id=14%20Capital%20Expenditure) As of June 30, 2025, the net book value of property, plant and equipment was RMB 580,197 thousand, construction in progress increased to RMB 241,614 thousand, and Dalian land use rights were pledged as collateral for bank financing Capital Expenditure Net Book Value (As of June 30) | Item | June 30, 2025 (RMB thousands) | January 1, 2025 (RMB thousands) | | :--- | :--- | :--- | | Property, plant and equipment | 580,197 | 604,275 | | Construction in progress | 241,614 | 230,344 | | Right-of-use assets | 88,833 | 90,359 | | Investment properties | 3,245 | 3,424 | - The land use rights of Changmao Dalian were pledged as collateral for bank financing for the Dalian factory[32](index=32&type=chunk) [15 Trade and Bills Receivables](index=17&type=section&id=15%20Trade%20and%20Bills%20Receivables) As of June 30, 2025, total trade and bills receivables amounted to RMB 68,600 thousand, an increase from the end of 2024, with trade receivables having credit terms ranging from 30 to 210 days, and the zero to three months aging category accounting for the largest proportion Trade and Bills Receivables (As of June 30) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade receivables | 47,898 | 43,010 | | Bills receivables | 20,702 | 19,991 | | **Total** | **68,600** | **63,001** | Trade Receivables Aging Analysis (As of June 30) | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | 0 to 3 months | 43,998 | 40,841 | | 4 to 6 months | 4,691 | 3,216 | | Over 6 months | 341 | 85 | [16 Cash and Bank Balances](index=18&type=section&id=16%20Cash%20and%20Bank%20Balances) As of June 30, 2025, total cash and bank balances were RMB 62,405 thousand, with RMB accounting for the largest proportion, and the conversion and remittance of RMB balances are subject to China's foreign exchange controls Cash and Bank Balances (As of June 30) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | 58,581 | 57,963 | | Pledged bank balances | 3,824 | 1,108 | | **Total** | **62,405** | **59,071** | Cash and Bank Balances by Currency (As of June 30) | Currency | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | RMB | 55,230 | 52,968 | | USD | 6,906 | 5,748 | | HKD | 269 | 355 | [17 Share Capital](index=19&type=section&id=17%20Share%20Capital) As of June 30, 2025, the company's issued share capital comprised 529,700,000 shares with a par value of RMB 0.10 each, totaling RMB 52,970 thousand in book value, with the share capital structure remaining unchanged Share Capital Structure (As of June 30) | Item | Number of shares | Book value (RMB thousands) | | :--- | :--- | :--- | | As of June 30, 2025 and December 31, 2024 | 529,700,000 | 52,970 | - The company's share capital includes **2,500,000 domestic shares**, **343,500,000 unlisted foreign shares**, and **183,700,000 H shares**[36](index=36&type=chunk) [18 Reserves](index=19&type=section&id=18%20Reserves) As of June 30, 2025, total reserves amounted to RMB 504,686 thousand, a decrease from RMB 530,476 thousand at the beginning of the year, primarily due to a reduction in retained earnings resulting from the loss for the period Reserves Movement (As of June 30) | Item | June 30, 2025 (RMB thousands) | January 1, 2025 (RMB thousands) | | :--- | :--- | :--- | | Share premium | 102,559 | 102,559 | | Statutory reserve | 87,233 | 87,233 | | Capital reserve | 461 | 461 | | Translation reserve | 7 | 7 | | Special reserve | 2,524 | 1,164 | | Retained earnings | 311,902 | 339,052 | | **Total** | **504,686** | **530,476** | - The **loss for the period of RMB 25,790 thousand** led to a decrease in retained earnings[37](index=37&type=chunk) [19 Bank Borrowings](index=20&type=section&id=19%20Bank%20Borrowings) As of June 30, 2025, total bank borrowings were RMB 524,361 thousand, with current bank borrowings accounting for RMB 487,961 thousand, and secured bank borrowings had a non-current portion of RMB 168,860 thousand reclassified as current liabilities due to a subsidiary's failure to meet asset-liability ratio requirements Bank Borrowings Composition (As of June 30) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Secured bank borrowings | 245,020 | 282,634 | | Unsecured bank borrowings | 279,341 | 241,906 | | **Total** | **524,361** | **524,540** | - Subsidiary Changmao Dalian failed to meet the asset-liability ratio requirement, resulting in **RMB 168,860 thousand** of non-current secured bank borrowings being reclassified as current liabilities[39](index=39&type=chunk) - The effective interest rate for secured bank borrowings is **4.4%**, and for unsecured bank borrowings is **3.1%**[40](index=40&type=chunk) [20 Trade and Bills Payables](index=22&type=section&id=20%20Trade%20and%20Bills%20Payables) As of June 30, 2025, total trade and bills payables amounted to RMB 49,724 thousand, a significant increase from the end of 2024, primarily driven by a notable growth in bills payables Trade and Bills Payables (As of June 30) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade payables | 30,604 | 23,158 | | Bills payables | 19,120 | 5,542 | | **Total** | **49,724** | **28,700** | Trade Payables Aging Analysis (As of June 30) | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | 0 to 6 months | 29,468 | 22,565 | | 7 to 12 months | 2 | 163 | | Over 12 months | 1,134 | 430 | [21 Contingent Liabilities](index=22&type=section&id=21%20Contingent%20Liabilities) As of June 30, 2025, and December 31, 2024, the Group had no significant contingent liabilities - The Group had no significant contingent liabilities[42](index=42&type=chunk) [22 Commitments](index=22&type=section&id=22%20Commitments) As of June 30, 2025, the Group's capital commitments for property, plant and equipment amounted to RMB 47,133 thousand, an increase from the end of 2024, primarily for the new Dalian factory and production line upgrades Capital Commitments (As of June 30) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Contracted but not provided for | 47,133 | 34,719 | [Business and Financial Review](index=23&type=section&id=Business%20and%20Financial%20Review) [Business Review and Outlook](index=23&type=section&id=Business%20Review%20and%20Outlook) In the first half of 2025, the Group's sales revenue decreased by 13%, and net loss attributable to shareholders expanded by 37%, primarily due to geopolitical uncertainties, tariff policies, and weak demand for maleic anhydride downstream products; the company actively adjusted its production and sales strategies, focusing on product quality, industrial upgrading, and R&D, while looking to future transformation, technological innovation, enhanced safety and environmental protection, and high-end customer development - Sales revenue decreased by approximately **13%** in the first half, and net loss attributable to owners of the Company expanded by approximately **37%**[45](index=45&type=chunk) - The decline in performance was mainly due to geopolitical conflicts, tariff policy uncertainties, weaker-than-expected demand for maleic anhydride downstream products, and increased interest expenses[45](index=45&type=chunk) - Changzhou factory's production and sales volume increased but gross profit margin decreased, Dalian factory's production and sales were lower than the prior period, and some production lines from Lianyungang have been relocated to Dalian and commenced operation[47](index=47&type=chunk) - The Group will fully support the development of the Dalian factory as its main chemical product production base, extending into new materials, APIs, and novel feed additives[49](index=49&type=chunk) [Interim Results](index=23&type=section&id=Interim%20Results) For the six months ended June 30, 2025, the Group's sales revenue decreased by 13% year-on-year to RMB 272,278 thousand, and net loss attributable to owners of the company expanded by 37% to RMB 25,790 thousand, with performance decline mainly attributed to external market factors and increased interest expenses Interim Results Overview (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Sales revenue | 272,278 | 313,802 | -13.23% | | Net loss attributable to owners of the Company | 25,790 | 18,786 | 37.28% | - The decline in performance was mainly due to geopolitical conflicts, tariff policy uncertainties, weaker-than-expected demand for maleic anhydride downstream products, and increased interest expenses[45](index=45&type=chunk) [Business Review](index=23&type=section&id=Business%20Review) In the first half of 2025, the Group maintained balanced production and sales, with Changzhou factory showing increased production and sales but lower gross profit margin, while Dalian factory's performance was below the prior period, and some Lianyungang production lines have been relocated to Dalian and commenced operation, as the company focuses on product quality, industrial upgrading, and continuous safety and environmental efforts - Changzhou factory's main product production and sales volume increased year-on-year, but the gross profit margin slightly decreased due to unit price impacts[47](index=47&type=chunk) - Some production lines from Lianyungang factory have been relocated to Dalian and commenced operation, positively impacting business operations[47](index=47&type=chunk) - The Group received certifications for Jiangsu Advanced Intelligent Factory and "Jiangsu Quality Product," and continues to enhance safety and environmental protection[47](index=47&type=chunk) [Research and Development](index=24&type=section&id=Research%20and%20Development) In the first half of 2025, the Group's R&D projects progressed steadily, covering new product development and existing product process improvements, with the Pharmaceutical Division having laid out 12 API and pharmaceutical excipient varieties, 7 of which have received "A" status approval results, and one new pharmaceutical excipient is undergoing quality stability assessment - Multiple self-developed and outsourced R&D projects were carried out as planned in the first half, covering new product development and existing product process improvements[48](index=48&type=chunk) - **12 API and pharmaceutical excipient varieties** have been laid out, with **7 varieties** receiving "A" status approval results in the "joint review and approval with formulations"[48](index=48&type=chunk) - A new pharmaceutical excipient is undergoing quality stability assessment and is expected to be submitted to the National Medical Products Administration's Center for Drug Evaluation within the year[48](index=48&type=chunk) [Prospects and Outlook](index=24&type=section&id=Prospects%20and%20Outlook) The Group will adhere to technological innovation, focusing on economic efficiency and customer needs, continuously reducing costs and increasing efficiency, including supporting the Dalian factory as a main production base, accelerating technological innovation, enhancing safety and environmental protection, strengthening risk control, and expanding high-end and international markets - Will fully support the development of the Dalian factory as the Group's main chemical product production base, extending into new materials, APIs, and novel feed additives[49](index=49&type=chunk) - Continuously increase R&D investment, integrate resources and R&D teams, accelerate R&D speed, and cultivate new products that are safe, environmentally friendly, and market-competitive[50](index=50&type=chunk) - Continue to strengthen safety risk control, promote cleaner production, and strive to improve levels in energy and resource consumption, carbon neutrality, and pollutant emissions[51](index=51&type=chunk) - The sales team is dedicated to developing key accounts and end-users, enhancing brand awareness and added value through product quality and service, and focusing on international market expansion[52](index=52&type=chunk) [Review of Financial Statements](index=26&type=section&id=Review%20of%20Financial%20Statements) The Audit Committee, together with the Directors, has reviewed the Group's unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025 - The Audit Committee, together with the Directors, has reviewed the Group's unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025[53](index=53&type=chunk) [Dividends](index=26&type=section&id=Dividends) The Directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025[54](index=54&type=chunk) [Segment Information](index=26&type=section&id=Segment%20Information) For the six months ended June 30, 2025, the Group's export revenue accounted for approximately 28% of total revenue, and domestic sales accounted for approximately 72%, showing little change compared to the prior period Revenue Geographical Distribution (For the six months ended June 30) | Sales Region | 2025 | 2024 | | :--- | :--- | :--- | | Export | Approx. 28% | Approx. 29% | | Domestic sales | Approx. 72% | Approx. 71% | [Exchange Rate Fluctuation Risk and Hedging](index=26&type=section&id=Exchange%20Rate%20Fluctuation%20Risk%20and%20Hedging) The Group primarily operates in China and is exposed to USD-related foreign currency risk, which management regularly monitors and partially hedges using forward foreign exchange agreements when necessary - The Group primarily operates in China and is exposed to USD-related foreign currency risk[56](index=56&type=chunk) - Management regularly monitors foreign currency risk and used forward foreign exchange agreements to hedge part of the USD risk during the period[56](index=56&type=chunk) [Liquidity and Financial Resources](index=26&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's total outstanding bank borrowings were RMB 524,361 thousand, with a debt-to-asset ratio of 54.7%, and capital commitments of RMB 47,133 thousand, mainly for the new Dalian factory and production line upgrades, intended to be met through operating cash flow and/or bank financing Liquidity and Financial Resources Overview (As of June 30) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total outstanding bank borrowings | 524,361 | 524,540 | | Debt-to-asset ratio | 54.7% | 53.3% | | Cash and cash equivalents at bank | 58,581 | 57,963 | | Capital commitments | 47,133 | 34,719 | - Capital commitments are mainly for the new Dalian factory and production line upgrades, intended to be met through operating cash flows and/or bank financing[57](index=57&type=chunk) [Employees](index=27&type=section&id=Employees) As of June 30, 2025, the Group had 533 employees, with total staff costs of RMB 40,605 thousand, a decrease from the prior period primarily due to reduced headcount and structural changes, and while an employee incentive scheme is in place, no profit-based bonuses were distributed this period Employees and Staff Costs (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Total number of employees | 533 | 647 | | Total staff costs (RMB thousands) | 40,605 | 42,389 | - The decrease in staff costs was mainly due to a reduction in the number of employees and changes in employee structure[59](index=59&type=chunk) - The company has an employee incentive scheme, but no profit-based bonuses were distributed during the period[59](index=59&type=chunk) [Material Investments](index=27&type=section&id=Material%20Investments) As of June 30, 2025, and December 31, 2024, the Group held no material investments, with major capital expenditures concentrated on the Dalian factory - The Group held no material investments[60](index=60&type=chunk) - Major capital commitments are concentrated on capital expenditure for the Dalian factory[60](index=60&type=chunk) [Changes in Group Structure During the Period](index=28&type=section&id=Changes%20in%20Group%20Structure%20During%20the%20Period) For the six months ended June 30, 2025, the Group did not acquire or dispose of any significant subsidiaries or associated companies - The Group did not acquire or dispose of any significant subsidiaries or associated companies[62](index=62&type=chunk) [Contingent Liabilities](index=28&type=section&id=Contingent%20Liabilities) As of June 30, 2025, and December 31, 2024, the Group had no significant contingent liabilities - The Group had no significant contingent liabilities[63](index=63&type=chunk) [Going Concern](index=28&type=section&id=Going%20Concern) The Group faces significant going concern uncertainties due to a loss for the period, net current liabilities, and failure to meet bank loan financial covenants; although the Board has reviewed cash flow forecasts and formulated mitigation measures, significant uncertainty remains regarding the realization of these plans - The Group recorded a **net loss of RMB 25,987,000** and **net current liabilities of RMB 292,922,000**[64](index=64&type=chunk) - The reclassification of **RMB 168,860,000** of the non-current portion of project loans as current liabilities indicates significant uncertainty[64](index=64&type=chunk) - The Board has reviewed management's cash flow forecasts and believes the Group will have sufficient working capital, but significant uncertainty remains regarding the realization of these plans[65](index=65&type=chunk) [Disclosure of Interests](index=29&type=section&id=Disclosure%20of%20Interests) [Directors', Supervisors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company or any of its Specified Corporations or any other Associated Corporations](index=29&type=section&id=Directors%27%2C%20Supervisors%27%20and%20Chief%20Executive%27s%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20or%20any%20of%20its%20Specified%20Corporations%20or%20any%20other%20Associated%20Corporations) As of June 30, 2025, Mr. Rui Xinsheng and his spouse Ms. Leng Yixin held beneficial interests in the company's domestic shares, unlisted foreign shares, and H shares, making them major shareholders, while other directors and supervisors also held unlisted foreign share interests through associated companies Directors' Interests in Shares (As of June 30, 2025) | Director | Type of interest | Number of domestic shares | Number of unlisted foreign shares | Number of H shares | | :--- | :--- | :--- | :--- | :--- | | Mr. Rui Xinsheng | Beneficial owner, spouse's interest and interest of controlled corporations | 2,500,000 | 135,000,000 | 12,236,000 | | Ms. Leng Yixin | Beneficial owner, spouse's interest and interest of controlled corporations | 2,500,000 | 135,000,000 | 12,236,000 | | Mr. Yu Xiaoping | Spouse's interest and interest of controlled corporations | – | 66,000,000 | 3,774,000 | - Mr. Rui Xinsheng and Ms. Leng Yixin hold significant unlisted foreign shares and domestic shares through Hong Kong Xinsheng and Changzhou Xinsheng[68](index=68&type=chunk) [Persons Who Have Interests or Short Positions Discloseable Under Divisions 2 and 3 of Part XV of the Securities and Futures Ordinance and Substantial Shareholders](index=32&type=section&id=Persons%20Who%20Have%20Interests%20or%20Short%20Positions%20Discloseable%20Under%20Divisions%202%20and%203%20of%20Part%20XV%20of%20the%20Securities%20and%20Futures%20Ordinance%20and%20Substantial%20Shareholders) As of June 30, 2025, Hong Kong Xinsheng Venture Investment Co., Ltd., Hong Kong Biochemical High-Tech Investment Co., Ltd., Zaowu Limited, and Hong Kong Kehai Venture Investment Co., Ltd. are major shareholders of the company, holding substantial unlisted foreign shares, and Ms. Lin Mao (spouse of Mr. Yu Xiaoping) also holds H shares and unlisted foreign shares through Zaowu Limited Substantial Shareholders' Interests in Shares (As of June 30, 2025) | Shareholder Name | Type of interest | Number of unlisted foreign shares | Approx. % of unlisted foreign shares | Number of H shares | Approx. % of H shares | | :--- | :--- | :--- | :--- | :--- | :--- | | Hong Kong Xinsheng Venture Investment Co., Ltd. | Beneficial owner | 135,000,000 | 39.30% | – | – | | Hong Kong Biochemical High-Tech Investment Co., Ltd. | Beneficial owner | 67,500,000 | 19.65% | – | – | | Zaowu Limited | Beneficial owner | 66,000,000 | 19.21% | – | – | | Ms. Lin Mao | Spouse's interest, interest of controlled corporations and beneficial owner | 66,000,000 | 19.21% | 3,774,000 | 2.05% | | Hong Kong Kehai Venture Investment Co., Ltd. | Beneficial owner | 62,500,000 | 18.20% | – | – | - Shanghai Science and Technology Venture Capital Co., Ltd. and its associated companies hold significant unlisted foreign shares through Hong Kong Kehai Venture Investment Co., Ltd[72](index=72&type=chunk) [Directors', Supervisors' and Chief Executive's Rights to Acquire Shares or Debentures](index=34&type=section&id=Directors%27%2C%20Supervisors%27%20and%20Chief%20Executive%27s%20Rights%20to%20Acquire%20Shares%20or%20Debentures) During the current year, neither the company, its subsidiaries, nor any other associated corporations entered into any arrangements enabling directors, supervisors, and chief executive or their families to hold interests in the shares or debentures of the company or associated corporations - During the current year, neither the company nor its subsidiaries entered into any arrangements enabling directors, supervisors, and chief executive or their families to hold interests in the shares or debentures of the company or associated corporations[74](index=74&type=chunk) [Other Information](index=35&type=section&id=Other%20Information) [Purchase, Sale or Redemption of the Company's Listed Securities](index=35&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[75](index=75&type=chunk) [Share Capital Structure](index=35&type=section&id=Share%20Capital%20Structure) As of June 30, 2025, the company's total issued shares were 529,700,000, comprising H shares, domestic shares, and unlisted foreign shares; while Chinese law does not explicitly define the rights of unlisted foreign shares, their holders are generally expected to enjoy the same rights as domestic shares and can be converted to H shares under specific conditions Share Capital Structure (As of June 30, 2025) | Share Class | Number of shares | | :--- | :--- | | H shares | 183,700,000 | | Domestic shares | 2,500,000 | | Unlisted foreign shares | 343,500,000 | | **Total** | **529,700,000** | - Holders of unlisted foreign shares are generally considered to have the same rights and obligations as holders of domestic shares and may be converted into overseas listed foreign shares (H shares) upon approval[78](index=78&type=chunk) [Compliance with Code Provisions of the Corporate Governance Code](index=37&type=section&id=Compliance%20with%20Code%20Provisions%20of%20the%20Corporate%20Governance%20Code) The company has complied with the code provisions of the Corporate Governance Code as set out in Part 2 of Appendix C1 to the Listing Rules for the six months ended June 30, 2025 - The company has complied with the code provisions of the Corporate Governance Code as set out in Part 2 of Appendix C1 to the Listing Rules[79](index=79&type=chunk) [Code of Conduct for Securities Transactions by Directors](index=37&type=section&id=Code%20of%20Conduct%20for%20Securities%20Transactions%20by%20Directors) The company has adopted the Model Code as its code of conduct for directors' securities transactions and was not aware of any non-compliance with the Model Code during the six months ended June 30, 2025 - The company has adopted the Model Code as its code of conduct for directors' securities transactions[80](index=80&type=chunk) - During the six months ended June 30, 2025, no non-compliance with the Model Code was noted[80](index=80&type=chunk) [Glossary](index=38&type=section&id=Glossary) [Glossary](index=38&type=section&id=Glossary) This section provides definitions for key terms used in the report, including financial statements, company entities, security types, and regulatory bodies - The glossary defines key terms used in the report, such as "Condensed Consolidated Financial Statements," "the Group," "H shares," and "Listing Rules"[82](index=82&type=chunk)[83](index=83&type=chunk)

| 3. 股份分類 | 普通股 | 股份類別 | 其他類別 (請註明) | 於香港聯交所上市 (註1) | 否 | | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | N/A | 說明 | 外資股 | | | | 2. 股份分類 | 普通股 | 股份類別 | | 其他類別 (請註明) | 於香港聯交所上市 (註1) | | 否 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | N/A | 說明 | 內資股 | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 2,500,000 | RMB | | 0.1 RMB | | 250,000 | | 增加 / 減少 (-) | | | 0 | | | RMB | | 0 | | 本月底結存 | | | 2,500,000 | RMB | | 0.1 RMB | | 250,000 | | 證券代號 (如上市) | 00954 | 說明 ...

Core Viewpoint - Changmao Biological (00954) reported a decline in revenue and an increase in losses for the first half of 2025, primarily due to external geopolitical factors and changes in product demand and pricing [1] Financial Performance - Revenue for the first half of 2025 was approximately 272 million yuan, representing a year-on-year decrease of 13.23% [1] - The loss attributable to shareholders was 25.79 million yuan, an increase of 37.28% compared to the previous year [1] - Earnings per share showed a loss of 0.049 yuan [1] Contributing Factors - The decline in performance was influenced by external factors such as geopolitical conflicts and uncertainties in tariff policies [1] - Demand for downstream products of phthalic anhydride was below expectations, and the release of new production capacity altered the supply-demand balance, indirectly affecting product prices and profitability [1] - The increase in interest expenses in the consolidated income statement was due to a reduction in the amount of capitalized interest on qualifying assets [1]

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) [Summary of Key Financial Data](index=1&type=section&id=Summary%20of%20Key%20Financial%20Data) During the reporting period, the company's revenue decreased by 13% year-on-year, loss attributable to equity holders expanded by 37%, and the board did not recommend an interim dividend - The Directors do not recommend the payment of an **interim dividend** for the six months ended June 30, 2025[3](index=3&type=chunk) Key Financial Data for the Six Months Ended June 30 (RMB thousands) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 272,278 | 313,802 | | Loss for the period attributable to equity holders of the Company | (25,790) | (18,786) | [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's revenue was **RMB 272,278 thousand**, a 13.23% year-on-year decrease, with loss attributable to equity holders of **RMB (25,790) thousand**, expanding by 37.28%, and basic and diluted loss per share of **RMB (0.049)** Summary of Condensed Consolidated Statement of Comprehensive Income (RMB thousands) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 272,278 | 313,802 | | Cost of sales | (259,127) | (297,815) | | Gross profit | 13,151 | 15,987 | | Other income | 3,282 | 5,507 | | Other gains, net | 496 | 1,844 | | Selling expenses | (4,396) | (4,194) | | Administrative expenses | (32,018) | (33,716) | | Operating loss | (19,485) | (14,572) | | Finance costs, net | (5,754) | (2,870) | | Loss before income tax | (25,239) | (17,442) | | Income tax expense | (748) | (1,134) | | Loss and total comprehensive loss for the period | (25,987) | (18,576) | | Loss attributable to equity holders of the Company | (25,790) | (18,786) | | Loss per share (RMB) | (0.049) | (0.035) | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets were **RMB 1,229,695 thousand**, total liabilities **RMB 672,343 thousand**, and total equity **RMB 557,352 thousand**, with slight decreases in non-current assets, current assets, and current liabilities, but an increase in non-current liabilities Summary of Condensed Consolidated Statement of Financial Position (RMB thousands) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Total non-current assets | 938,140 | 950,965 | | Total current assets | 291,555 | 298,793 | | **Total assets** | **1,229,695** | **1,249,758** | | **Equity** | | | | Equity attributable to equity holders of the Company | 557,656 | 583,446 | | Non-controlling interests | (304) | (107) | | **Total equity** | **557,352** | **583,339** | | **Liabilities** | | | | Total non-current liabilities | 87,866 | 61,868 | | Total current liabilities | 584,477 | 604,551 | | **Total liabilities** | **672,343** | **666,419** | | **Total equity and liabilities** | **1,229,695** | **1,249,758** | [Condensed Consolidated Statement of Changes in Equity](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, equity attributable to equity holders decreased from **RMB 583,446 thousand** at the beginning of the year to **RMB 557,656 thousand**, primarily due to a loss of **RMB 25,790 thousand** during the period Summary of Condensed Consolidated Statement of Changes in Equity (RMB thousands) | Item | Balance at January 1, 2025 | Loss for the period | Other | Balance at June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | | Attributable to equity holders of the Company | 583,446 | (25,790) | – | 557,656 | | Non-controlling interests | (107) | (197) | – | (304) | | **Total equity** | **583,339** | **(25,987)** | **–** | **557,352** | [Condensed Consolidated Statement of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash generated from operating activities was **RMB 15,363 thousand**, a significant improvement from a net outflow in the prior year, with net cash used in investing activities of **RMB (1,130) thousand** and financing activities of **RMB (13,816) thousand**, resulting in a net increase in cash and cash equivalents of **RMB 417 thousand** Summary of Condensed Consolidated Statement of Cash Flows (RMB thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Net cash generated from/(used in) operating activities | 15,363 | (26,585) | | Net cash used in investing activities | (1,130) | (42,820) | | Net cash (used in)/generated from financing activities | (13,816) | 40,892 | | Net increase/(decrease) in cash and cash equivalents | 417 | (28,513) | | Cash and cash equivalents at June 30 | 58,581 | 62,029 | [Notes to the Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [1 General Information](index=7&type=section&id=1%20General%20Information) Changmao Biochemical Engineering Company Limited primarily engages in the production and sale of organic acid products, with its H shares listed on the Main Board of the HKEX on June 28, 2013, and its registered office in Changzhou, Jiangsu Province, China - The company's principal activities are the production and sale of **organic acid products**[10](index=10&type=chunk) - H shares were transferred to the Main Board of the HKEX on **June 28, 2013**[10](index=10&type=chunk) [2 Basis of Preparation and Accounting Policies](index=7&type=section&id=2%20Basis%20of%20Preparation%20and%20Accounting%20Policies) Interim financial information is prepared in accordance with HKAS 34, with accounting policies consistent with the 2024 annual financial statements, despite significant going concern uncertainties due to net loss, net current liabilities, and a subsidiary's non-compliance with bank loan covenants, for which management has developed mitigation plans [Going Concern Basis](index=7&type=section&id=Going%20Concern%20Basis) For the six months ended June 30, 2025, the Group reported a net loss of **RMB 25,987 thousand** and net current liabilities of **RMB 292,922 thousand**, with a subsidiary's non-compliance with loan covenants leading to **RMB 168,860 thousand** of non-current loans being reclassified as current liabilities, creating significant going concern uncertainty, which management addresses through bank negotiations, unused financing, cost reduction, and capital expenditure control - The Group recorded a net loss of **RMB 25,987 thousand** and net current liabilities of **RMB 292,922 thousand**[14](index=14&type=chunk) - A subsidiary's failure to meet asset-liability ratio covenants for project loans resulted in **RMB 168,860 thousand** of non-current loans being reclassified as current liabilities[14](index=14&type=chunk) - Management has developed plans including negotiating with banks, utilizing **RMB 112,362 thousand** in unutilized bank facilities, consolidating production lines, reducing costs, and controlling capital expenditures to mitigate liquidity pressure and support going concern[15](index=15&type=chunk)[16](index=16&type=chunk) [2.1 New and Revised Standards](index=9&type=section&id=2.1%20New%20and%20Revised%20Standards) New Hong Kong Financial Reporting Standards effective from July 1, 2025, have no significant impact on the Group's accounting policies - New Hong Kong Financial Reporting Standards have no significant impact on the Group's interim financial statements[18](index=18&type=chunk) [3 Estimates](index=9&type=section&id=3%20Estimates) Preparation of interim financial information involves management's judgments, estimates, and assumptions regarding accounting policies and reported amounts, with key uncertainties consistent with the 2024 annual financial statements, primarily concerning bank covenant compliance, financing, cost control, and profitability enhancement plans - Key estimation uncertainties include banks' discretionary assessment of financial covenants, successful acquisition of new financing, implementation of cost reduction plans, and control over administrative and capital expenditures[19](index=19&type=chunk)[20](index=20&type=chunk) [4 Financial Risk Management](index=10&type=section&id=4%20Financial%20Risk%20Management) The Group faces foreign exchange, credit, liquidity, and cash flow and fair value interest rate risks, with no significant changes in risk management policies since year-end - The Group faces foreign exchange, credit, liquidity, and interest rate risks, with no significant changes in risk management policies[21](index=21&type=chunk)[22](index=22&type=chunk) [5 Revenue and Segment Information](index=10&type=section&id=5%20Revenue%20and%20Segment%20Information) The Group primarily engages in the production and sale of organic acid products, with management identifying only one operating segment; for the six months ended June 30, 2025, Mainland China remained the main revenue source, but revenue decreased across all regions - The Group presents only one operating segment, primarily engaged in the production and sale of **organic acid products**[23](index=23&type=chunk) Sales Revenue by Geographical Region (RMB thousands) | Region | 2025 | 2024 | | :--- | :--- | :--- | | Mainland China | 196,143 | 222,042 | | Asia Pacific | 34,287 | 41,472 | | Europe | 30,713 | 34,902 | | Americas | 7,173 | 9,650 | | Other regions | 3,962 | 5,736 | | **Total** | **272,278** | **313,802** | - All non-current assets, excluding deferred tax assets, are located in **Mainland China**[25](index=25&type=chunk) [6 Other Income](index=11&type=section&id=6%20Other%20Income) For the six months ended June 30, 2025, total other income decreased to **RMB 3,282 thousand** from **RMB 5,507 thousand** in the prior period, primarily due to a significant reduction in income from sales of scrap materials Other Income (RMB thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Sales of scrap materials | 4 | 1,704 | | Government grants | 2,472 | 2,965 | | Others | 806 | 838 | | **Total** | **3,282** | **5,507** | [7 Other Gains, Net](index=11&type=section&id=7%20Other%20Gains%2C%20Net) For the six months ended June 30, 2025, net other gains significantly decreased to **RMB 496 thousand** from **RMB 1,844 thousand** in the prior period, primarily due to lower net exchange gains Other Gains, Net (RMB thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Fair value gains on financial assets | 10 | 32 | | Net exchange gains | 575 | 1,812 | | Others | (89) | – | | **Total** | **496** | **1,844** | [8 Finance Costs, Net](index=11&type=section&id=8%20Finance%20Costs%2C%20Net) For the six months ended June 30, 2025, net finance costs significantly increased to **RMB 5,754 thousand** from **RMB 2,870 thousand** in the prior period, primarily due to reduced capitalization of interest on qualifying assets, leading to higher bank loan interest expenses Finance Costs, Net (RMB thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Interest on bank loans | 9,903 | 10,678 | | Interest on lease liabilities | 22 | 46 | | Less: Capitalized for qualifying assets | (3,882) | (7,319) | | Interest income from bank deposits | (289) | (535) | | **Net finance costs** | **5,754** | **2,870** | [9 Loss Before Income Tax](index=12&type=section&id=9%20Loss%20Before%20Income%20Tax) For the six months ended June 30, 2025, loss before income tax expanded to **RMB 25,239 thousand** from **RMB 17,442 thousand** in the prior period, with depreciation expenses increasing from **RMB 20,508 thousand** to **RMB 23,153 thousand** Components of Loss Before Income Tax (RMB thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Amortisation of patent rights | 66 | 66 | | Amortisation of right-of-use assets | 1,526 | 1,526 | | Depreciation | 23,153 | 20,508 | [10 Income Tax Expense](index=12&type=section&id=10%20Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense decreased to **RMB 748 thousand** from **RMB 1,134 thousand** in the prior period, with the company benefiting from a **15% preferential income tax rate** as a high-tech enterprise, while other subsidiaries are subject to **25%**, and the R&D super deduction policy remains applicable - The company enjoys a **15% preferential income tax rate** as a high-tech enterprise, while other subsidiaries are subject to **25%**[28](index=28&type=chunk) Income Tax Expense (RMB thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Current income tax | 640 | 632 | | Deferred income tax | 108 | 502 | | **Total** | **748** | **1,134** | - The **200% R&D super deduction policy** continues to provide tax benefits to the company[30](index=30&type=chunk) [11 Loss Per Share](index=13&type=section&id=11%20Loss%20Per%20Share) For the six months ended June 30, 2025, basic and diluted loss per share expanded to **RMB (0.049)** from **RMB (0.035)** in the prior period, primarily due to an increase in loss attributable to equity holders Loss Per Share (RMB) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Loss attributable to equity holders of the Company | (25,790,000) | (18,786,000) | | Weighted average number of ordinary shares in issue | 529,700,000 | 529,700,000 | | **Loss per share** | **(0.049)** | **(0.035)** | - There were no dilutive shares during the period[32](index=32&type=chunk) [12 Dividends](index=14&type=section&id=12%20Dividends) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025, consistent with the prior period - The Directors do not recommend the payment of an **interim dividend** for the six months ended June 30, 2025[33](index=33&type=chunk) [13 Patent Rights](index=14&type=section&id=13%20Patent%20Rights) As of June 30, 2025, the net book value of patent rights decreased to **RMB 440 thousand** from **RMB 506 thousand** at the beginning of the year, primarily due to amortization of **RMB 66 thousand** Net Book Value of Patent Rights (RMB thousands) | Item | Amount | | :--- | :--- | | Net book value at January 1, 2025 | 506 | | Amortisation | (66) | | **Net book value at June 30, 2025** | **440** | [14 Capital Expenditure](index=14&type=section&id=14%20Capital%20Expenditure) As of June 30, 2025, the net book value of property, plant, and equipment was **RMB 580,197 thousand**, and construction in progress was **RMB 241,614 thousand**, with Dalian land use rights pledged as collateral for bank financing Net Book Value of Capital Expenditure (RMB thousands) | Item | June 30, 2025 | | :--- | :--- | | Property, plant and equipment | 580,197 | | Construction in progress | 241,614 | | Right-of-use assets | 88,833 | | Investment properties | 3,245 | - The land use rights of Changmao Dalian were pledged as collateral for bank financing for the Dalian factory[36](index=36&type=chunk) [15 Trade and Bills Receivables](index=15&type=section&id=15%20Trade%20and%20Bills%20Receivables) As of June 30, 2025, total trade and bills receivables increased to **RMB 68,600 thousand** from **RMB 63,001 thousand** as of December 31, 2024, with trade receivables having credit terms ranging from **30 to 210 days** Trade and Bills Receivables (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade receivables | 47,898 | 43,010 | | Bills receivables | 20,702 | 19,991 | | **Total** | **68,600** | **63,001** | - Trade receivables have credit terms ranging from **30 to 210 days**, and bills receivables generally mature within **six months**[37](index=37&type=chunk) [16 Pledged Bank Balances and Cash and Bank Balances](index=16&type=section&id=16%20Pledged%20Bank%20Balances%20and%20Cash%20and%20Bank%20Balances) As of June 30, 2025, total cash and bank balances were **RMB 62,405 thousand**, with **RMB 55,230 thousand** denominated in RMB, and pledged bank balances increased to **RMB 3,824 thousand**; the remittance of RMB funds is subject to China's foreign exchange controls Cash and Bank Balances (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | 58,581 | 57,963 | | Pledged bank balances | 3,824 | 1,108 | | **Total** | **62,405** | **59,071** | - Balances denominated in RMB are subject to China's government foreign exchange controls for conversion into foreign currencies and remittance[38](index=38&type=chunk) [17 Share Capital](index=16&type=section&id=17%20Share%20Capital) As of June 30, 2025, the company's total issued share capital was **529,700,000 shares**, comprising domestic shares, promoter foreign shares, and H shares, with a total book value of **RMB 52,970 thousand**; H shares enjoy equal rights with domestic and promoter foreign shares, but dividends are paid in HKD Issued Share Capital (RMB thousands) | Number of shares | Book value | | :--- | :--- | | 529,700,000 | 52,970 | - The company's share capital comprises **2,500,000 domestic shares**, **343,500,000 promoter foreign shares**, and **183,700,000 H shares**[39](index=39&type=chunk) [18 Reserves](index=17&type=section&id=18%20Reserves) As of June 30, 2025, the company's total reserves decreased to **RMB 504,686 thousand** from **RMB 530,476 thousand** at the beginning of the year, primarily due to a loss of **RMB 25,790 thousand** during the period Movement in Reserves (RMB thousands) | Item | January 1, 2025 | Loss for the period | Other | June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | | Share premium | 102,559 | – | – | 102,559 | | Statutory surplus reserve | 87,233 | – | – | 87,233 | | Capital reserve | 461 | – | – | 461 | | Translation reserve | 7 | – | – | 7 | | Special reserve | 1,164 | – | 1,360 | 2,524 | | Retained profits | 339,052 | (25,790) | (1,360) | 311,902 | | **Total** | **530,476** | **(25,790)** | **–** | **504,686** | [19 Bank Loans](index=17&type=section&id=19%20Bank%20Loans) As of June 30, 2025, the Group's total outstanding bank loans were **RMB 524,361 thousand**, with **RMB 487,961 thousand** classified as current bank loans; a subsidiary, Changmao Dalian, failed to meet its asset-liability ratio covenant, leading to **RMB 168,860 thousand** of non-current secured bank loans being reclassified as current liabilities, though management believes banks have discretion not to deem this a non-compliance Total Bank Loans (RMB thousands) | Type | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Secured bank loans | 245,020 | 282,634 | | Unsecured bank loans | 279,341 | 241,906 | | **Total** | **524,361** | **524,540** | - Subsidiary Changmao Dalian's failure to meet its asset-liability ratio covenant resulted in **RMB 168,860 thousand** of non-current secured bank loans being reclassified as current liabilities[43](index=43&type=chunk) - Management believes banks have discretion in calculating the asset-liability ratio and may not deem Changmao Dalian non-compliant, and internal loans can be converted to capital if necessary to meet requirements[43](index=43&type=chunk) - The effective interest rate for secured bank loans is **4.4%**, and for unsecured bank loans is **3.1%**[44](index=44&type=chunk) [20 Trade and Bills Payables](index=19&type=section&id=20%20Trade%20and%20Bills%20Payables) As of June 30, 2025, total trade and bills payables significantly increased to **RMB 49,724 thousand** from **RMB 28,700 thousand** as of December 31, 2024, with trade payables primarily aged between **zero and six months** Trade and Bills Payables (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables | 30,604 | 23,158 | | Bills payables | 19,120 | 5,542 | | **Total** | **49,724** | **28,700** | - Trade payables are primarily aged between **zero and six months**, and bills payables generally mature within **six months**[48](index=48&type=chunk) [21 Contingent Liabilities](index=19&type=section&id=21%20Contingent%20Liabilities) As of June 30, 2025, and December 31, 2024, the Group had no significant contingent liabilities - The Group has no significant contingent liabilities[46](index=46&type=chunk) [22 Commitments](index=19&type=section&id=22%20Commitments) As of June 30, 2025, the Group's capital commitments for property, plant, and equipment increased to **RMB 47,133 thousand** from **RMB 34,719 thousand** as of December 31, 2024 Capital Commitments (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Contracted but not provided for | 47,133 | 34,719 | [Business Review and Outlook](index=20&type=section&id=Business%20Review%20and%20Outlook) [Interim Results](index=20&type=section&id=Interim%20Results) For the six months ended June 30, 2025, the Group's sales revenue decreased by **13%** year-on-year to **RMB 272,278 thousand**, and net loss attributable to equity holders expanded by **37%** to **RMB 25,790 thousand**, primarily due to geopolitical conflicts, tariff policy uncertainties, weaker-than-expected maleic anhydride downstream demand, and increased interest expenses - Sales revenue decreased by **13%** year-on-year to **RMB 272,278 thousand**[49](index=49&type=chunk) - Net loss attributable to equity holders expanded by **37%** to **RMB 25,790 thousand**[49](index=49&type=chunk) - Performance decline was primarily impacted by geopolitical conflicts, tariff policy uncertainties, weaker-than-expected maleic anhydride downstream demand, and increased interest expenses[49](index=49&type=chunk) [Business Review](index=20&type=section&id=Business%20Review) In the first half, the Group maintained balanced production and sales, with Changzhou factory's production and sales increasing but gross margin declining, while Dalian factory's performance lagged; some Lianyungang production lines have relocated to Dalian and commenced operation, and the Group focuses on product quality, industrial upgrading, system development (smart factory certification), factory management, safety, environmental protection, and energy saving - Changzhou factory's production and sales increased but gross margin declined, while Dalian factory's production and sales lagged behind the prior period[50](index=50&type=chunk) - Some Lianyungang production lines have been relocated to Dalian and commenced operation, positively impacting operations[50](index=50&type=chunk) - The Group obtained Jiangsu Province Advanced Smart Factory certification and 'Jiangsu Quality Product' certification, and continuously enhances safety and environmental protection standards[50](index=50&type=chunk) [Research and Development](index=21&type=section&id=Research%20and%20Development) In the first half, the Group steadily advanced multiple R&D projects, covering new product development and existing product process improvements; the Pharmaceutical Division has laid out **12 API and pharmaceutical excipient varieties**, with **7 already in A-status** for direct supply to pharmaceutical companies, and one new pharmaceutical excipient undergoing quality stability assessment, expected to be submitted for approval within the year - R&D projects steadily advanced in the first half, covering new product development and existing product process improvements[51](index=51&type=chunk) - The Pharmaceutical Division has laid out **12 API and pharmaceutical excipient varieties**, with **7 already in A-status**, and one new pharmaceutical excipient is expected to be submitted for approval within the year[51](index=51&type=chunk) [Prospects and Outlook](index=21&type=section&id=Prospects%20and%20Outlook) The Group will continue to prioritize technological innovation and economic efficiency, focusing on customer needs to maintain industry leadership through transformation, technological innovation, enhanced safety and environmental standards, and market expansion, extending its product chain into high-value-added areas such as new materials and APIs [1. Continue Transformation and Upgrading, Promote New Base Business Development](index=21&type=section&id=1.%20Continue%20Transformation%20and%20Upgrading%2C%20Promote%20New%20Base%20Business%20Development) The Group will fully support the development of the Dalian factory, which has commenced production for Phase II and relocated Lianyungang products, serving as the primary chemical product manufacturing base to extend the product chain into new materials, APIs, and novel feed additives, creating new economic benefits - The Dalian factory will serve as the Group's main chemical product manufacturing base, with Phase II and relocated Lianyungang products already in production[52](index=52&type=chunk) - Future plans include extending the product chain into new materials, APIs, and novel feed additives[52](index=52&type=chunk) [2. Accelerate Technological Innovation, Promote Product Upgrading](index=22&type=section&id=2.%20Accelerate%20Technological%20Innovation%2C%20Promote%20Product%20Upgrading) The Group will continuously increase R&D investment, integrate resources, attract talent, and focus on key breakthroughs to enhance existing product competitiveness and accelerate the development of safe, environmentally friendly, and market-competitive new products, seeking new sources of profit - Continuously increase R&D investment, integrate resources, attract talent, and focus on key breakthroughs to enhance existing product competitiveness[53](index=53&type=chunk) - Accelerate the development of safe, environmentally friendly, and market-competitive new products, promoting product chain renewal and upgrading[53](index=53&type=chunk) [3. Enhance Safety and Environmental Protection, Strengthen Risk Control](index=22&type=section&id=3.%20Enhance%20Safety%20and%20Environmental%20Protection%2C%20Strengthen%20Risk%20Control) The Group will continue to strengthen safety risk control, improve the safe production environment, promote cleaner production, implement pollution prevention, and strive to enhance performance in energy and resource consumption, carbon neutrality, and pollutant emissions, building a resource-saving and environmentally friendly enterprise - Strengthen safety risk control, improve the safe production environment, promote cleaner production, and implement pollution prevention[54](index=54&type=chunk) - Committed to improving performance in energy and resource consumption, carbon neutrality, and pollutant emissions, building a resource-saving and environmentally friendly enterprise[54](index=54&type=chunk) [4. Focus on Market Expansion, Develop High-End Customers](index=22&type=section&id=4.%20Focus%20on%20Market%20Expansion%2C%20Develop%20High-End%20Customers) The sales team will focus on developing key accounts and end-users, enhancing Changmao's brand recognition and added value through improved product quality and service to avoid low-price competition, while also expanding international markets and collaborating with major international clients on new products and technologies to boost global influence - The sales team will develop key accounts and end-users, enhancing brand recognition and added value through improved product quality and service[55](index=55&type=chunk) - Expand international markets and collaborate with major international clients on new products and technologies to enhance global influence[55](index=55&type=chunk) [Outlook Summary](index=23&type=section&id=Outlook%20Summary) The Group will continue to focus on food additives, enhance existing product competitiveness, accelerate new product launches, actively explore new markets and application areas, leverage R&D and manufacturing advantages, extend the product chain, and grow stronger - Continue to focus on **food additives**, enhance existing product competitiveness, and accelerate new product launches[56](index=56&type=chunk) - Develop new functional food additives, new materials, APIs, and other products to extend the product chain[56](index=56&type=chunk) [Review of Financial Statements](index=23&type=section&id=Review%20of%20Financial%20Statements) The Audit Committee, together with the Directors, has reviewed the Group's unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025 - The Audit Committee has reviewed the Group's unaudited condensed consolidated interim financial statements[57](index=57&type=chunk) [Dividends](index=23&type=section&id=Dividends) The Directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Directors do not recommend the payment of an **interim dividend**[58](index=58&type=chunk) [Segment Information](index=23&type=section&id=Segment%20Information) For the six months ended June 30, 2025, export sales accounted for approximately **28%** of the Group's revenue (29% in the prior period), while domestic sales accounted for approximately **72%** (71% in the prior period) - Export sales accounted for approximately **28%** of revenue (a 1% year-on-year decrease), while domestic sales accounted for approximately **72%** (a 1% year-on-year increase)[59](index=59&type=chunk) [Exchange Rate Fluctuation Risk and Related Hedging](index=23&type=section&id=Exchange%20Rate%20Fluctuation%20Risk%20and%20Related%20Hedging) Operating primarily in China, the Group faces foreign currency risk mainly denominated in USD; management regularly monitors and considers hedging significant foreign currency exposures, utilizing forward foreign exchange agreements to hedge some USD risk during the period - The Group primarily faces **USD foreign currency risk**, which management regularly monitors and partially hedges using forward foreign exchange agreements[60](index=60&type=chunk) [Liquidity and Financial Resources](index=24&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's total outstanding bank loans were **RMB 524,361 thousand**, with capital commitments of **RMB 47,133 thousand** primarily for the new Dalian factory and production line upgrades, and a debt-to-asset ratio of **54.7%** - Total outstanding bank loans amounted to **RMB 524,361 thousand**[61](index=61&type=chunk) - Capital commitments were **RMB 47,133 thousand**, primarily for the new Dalian factory and production line upgrades[61](index=61&type=chunk) - The debt-to-asset ratio was **54.7%** (53.3% as of December 31, 2024)[62](index=62&type=chunk) - Cash and cash equivalents at bank totaled approximately **RMB 58,581 thousand**[62](index=62&type=chunk) [Employees](index=24&type=section&id=Employees) As of June 30, 2025, the Group had **533 employees**, with total staff costs of **RMB 40,605 thousand**, a year-on-year decrease primarily due to reduced headcount and structural changes; the company's employee incentive plan had a target profit of **RMB 40,000 thousand**, which was not met this period - Total employees numbered **533** (a decrease of **114** year-on-year), with total staff costs of **RMB 40,605 thousand** (a **4.2%** year-on-year decrease)[63](index=63&type=chunk) - The decrease in staff costs was primarily due to a reduction in headcount and structural changes[63](index=63&type=chunk) - The company has an employee incentive plan with a target profit of **RMB 40,000 thousand**, which was not achieved this period, resulting in no profit-based incentive bonuses[63](index=63&type=chunk)[64](index=64&type=chunk) [Significant Investments](index=25&type=section&id=Significant%20Investments) The Group had no significant investments during the reporting period, with capital commitments primarily allocated to capital expenditures for the Dalian factory - The Group has no significant investments or capital asset plans, with capital commitments primarily for capital expenditures at the Dalian factory[65](index=65&type=chunk) [Changes in the Group's Structure During the Period](index=25&type=section&id=Changes%20in%20the%20Group's%20Structure%20During%20the%20Period) For the six months ended June 30, 2025, the Group did not acquire or dispose of any significant subsidiaries or associated companies - There were no significant acquisitions or disposals of subsidiaries or associated companies during the period[66](index=66&type=chunk) [Contingent Liabilities](index=25&type=section&id=Contingent%20Liabilities) As of June 30, 2025, and December 31, 2024, the Group had no significant contingent liabilities - The Group has no significant contingent liabilities[67](index=67&type=chunk) [Going Concern](index=25&type=section&id=Going%20Concern) The Group faces significant going concern uncertainties due to net loss, net current liabilities, and a subsidiary's non-compliance with bank loan covenants, leading to reclassification of some non-current loans as current liabilities; the Board has reviewed management's cash flow forecasts and mitigation plans, believing the Group will have sufficient working capital, but the realization of these plans remains subject to significant uncertainties - The Group recorded a net loss of **RMB 25,987 thousand**, net current liabilities of **RMB 292,922 thousand**, total bank loans of **RMB 524,361 thousand**, of which **RMB 487,961 thousand** were current bank loans[68](index=68&type=chunk) - A subsidiary's failure to meet bank loan financial covenants resulted in **RMB 168,860 thousand** of non-current loans being reclassified as current liabilities, constituting a significant going concern uncertainty[68](index=68&type=chunk) - The Board has reviewed management's cash flow forecasts and mitigation plans, believing the Group will have sufficient working capital, but the realization of these plans remains subject to significant uncertainties[69](index=69&type=chunk) [Corporate Governance and Shareholder Information](index=26&type=section&id=Corporate%20Governance%20and%20Shareholder%20Information) [Directors', Supervisors' or Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company or its Specified Corporations or Any Other Associated Corporations](index=26&type=section&id=Directors'%2C%20Supervisors'%20or%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20or%20its%20Specified%20Corporations%20or%20Any%20Other%20Associated%20Corporations) As of June 30, 2025, Director Mr. Rui Xinsheng and his spouse Ms. Leng Yixin held significant long positions in domestic shares, foreign shares, and H shares; Mr. Yu Xiaoping and his spouse also held interests in foreign shares and H shares, with other directors and supervisors holding partial interests Directors' Long Positions in Shares | Director | Type of interest | Domestic shares (thousand shares) | Foreign shares (thousand shares) | H shares (thousand shares) | | :--- | :--- | :--- | :--- | :--- | | Mr. Rui Xinsheng | Beneficial owner, spouse, controlled corporation | 2,500 | 135,000 | 12,236 | | Ms. Leng Yixin | Beneficial owner, spouse, controlled corporation | 2,500 | 135,000 | 12,236 | | Mr. Yu Xiaoping | Spouse, controlled corporation | – | 66,000 | 3,774 | - Mr. Rui Xinsheng and Ms. Leng Yixin hold significant interests in domestic shares, foreign shares, and H shares through beneficial ownership, spouse's interests, and controlled corporations[72](index=72&type=chunk)[74](index=74&type=chunk) [Persons and Substantial Shareholders Required to Disclose Interests or Short Positions Under Divisions 2 and 3 of Part XV of the Securities and Futures Ordinance](index=29&type=section&id=Persons%20and%20Substantial%20Shareholders%20Required%20to%20Disclose%20Interests%20or%20Short%20Positions%20Under%20Divisions%202%20and%203%20of%20Part%20XV%20of%20the%20Securities%20and%20Futures%20Ordinance) As of June 30, 2025, Hong Kong Xinsheng Venture Capital Co., Ltd., Hong Kong Biochemical High-Tech Investment Co., Ltd., Zaowu Co., Ltd., Hong Kong Kehai Venture Capital Co., Ltd., and their associated companies were substantial shareholders of the Company, holding significant interests in foreign shares; Ms. Lin Mao (spouse of Mr. Yu Xiaoping) also held interests in H shares Substantial Shareholders' Long Positions in Shares | Shareholder Name | Type of interest | Foreign shares (thousand shares) | H shares (thousand shares) | | :--- | :--- | :--- | :--- | | Hong Kong Xinsheng Venture Capital Co., Ltd. | Beneficial owner | 135,000 | – | | Hong Kong Biochemical High-Tech Investment Co., Ltd. | Beneficial owner | 67,500 | – | | Zaowu Co., Ltd. | Beneficial owner | 66,000 | – | | Ms. Lin Mao | Spouse, controlled corporation, beneficial owner | 66,000 | 3,774 | | Hong Kong Kehai Venture Capital Co., Ltd. | Beneficial owner | 62,500 | – | | Shanghai Science and Technology Venture Capital Co., Ltd. | Controlled corporation | 62,500 | – | - Hong Kong Xinsheng Venture Capital Co., Ltd. is the largest foreign share shareholder, holding **135,000,000 shares**, representing **39.30%**[75](index=75&type=chunk) [Interests of Directors, Supervisors and Chief Executive to Subscribe for Shares or Debentures](index=31&type=section&id=Interests%20of%20Directors%2C%20Supervisors%20and%20Chief%20Executive%20to%20Subscribe%20for%20Shares%20or%20Debentures) Neither the Company, its subsidiaries, nor any associated corporations entered into any arrangements during the year enabling directors, supervisors, chief executive, or their associates to acquire interests in shares or debentures of the Company or its associated corporations - During the current year, the company had no arrangements enabling directors, supervisors, chief executive, or their associates to hold interests in the company's shares or debentures[78](index=78&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=31&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During the period, neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities[79](index=79&type=chunk) [Share Capital Structure](index=31&type=section&id=Share%20Capital%20Structure) As of June 30, 2025, the Company's total issued shares were **529,700,000**, comprising H shares, domestic shares, and foreign shares; foreign shareholders enjoy the same rights and obligations as domestic shareholders, including receiving foreign currency dividends, participating in residual asset distribution, and, with approval, converting to overseas listed foreign shares Issued Share Classes and Quantities | Share Class | Number of Shares | | :--- | :--- | | H shares | 183,700,000 | | Domestic shares | 2,500,000 | | Foreign shares | 343,500,000 | | **Total** | **529,700,000** | - Foreign shareholders enjoy the same rights and obligations as domestic shareholders, including receiving foreign currency dividends, participating in residual asset distribution, and, with approval, converting to overseas listed foreign shares[82](index=82&type=chunk)[83](index=83&type=chunk)[88](index=88&type=chunk) [Compliance with Code Provisions of the Corporate Governance Code](index=33&type=section&id=Compliance%20with%20Code%20Provisions%20of%20the%20Corporate%20Governance%20Code) For the six months ended June 30, 2025, the Company has consistently complied with the code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules - The company complies with the Corporate Governance Code in Appendix C1 Part 2 of the Listing Rules[84](index=84&type=chunk) [Code of Conduct for Directors' Securities Transactions](index=33&type=section&id=Code%20of%20Conduct%20for%20Directors'%20Securities%20Transactions) The Company has adopted the Standard Code as its code of conduct for directors' securities transactions and found no instances of non-compliance during the reporting period - The company has adopted the Standard Code as its code of conduct for directors' securities transactions, with no non-compliance found during the reporting period[85](index=85&type=chunk) [Glossary](index=34&type=section&id=Glossary) [Glossary](index=34&type=section&id=Glossary) This section provides definitions of key terms used in the report to aid reader comprehension of the financial report content

此乃要件 請即處理 閣下如對本通函任何方面或應採取之行動有任何疑問，應諮詢持牌證券交易商或註 冊證券機構、銀行經理、律師、專業會計師或其他專業顧問。 閣下如已將名下常茂生物化學工程股份有限公司股份全部售出或轉讓，應立即將本 通函送交買主或受讓人，或經手買賣或轉讓之銀行、持牌證券交易商或註冊證券機 構或其他代理商，以便轉交買主或受讓人。 香港交易及結算所有限公司及香港聯合交易所有限公司對本通函之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本通函全部或任何部 份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 | 釋義 | | 1 | | --- | --- | --- | | 董事會函件 | | 3 | | 附件一 － | 財務資料 | 10 | | 附件二 － | 一般資料 | 13 | 常茂生物化學工程股份有限公司 Changmao Biochemical Engineering Company Limited* （於中華人民共和國註冊成立之股份有限公司） （股份代號：954） 主要交易 有關 售後回租安排 董事會函件載於本通函第3至9頁。 本封頁所用詞彙與本通函「釋義」一 ...

Group 1: Company Earnings - PCCW (00008.HK) reported a revenue of HKD 18.922 billion for the first half, a year-on-year increase of 7%, with a net loss of HKD 0.445 billion, narrowing by 4% [1] - Xinyi Solar (00968.HK) recorded a revenue of HKD 10.932 billion, a decrease of 6.5% year-on-year, with a net profit of HKD 0.746 billion, down 58.8% [2] - Xinyi Glass (00868.HK) had a revenue of HKD 9.821 billion, a year-on-year decrease of 9.7%, with a net profit of HKD 1.013 billion, down 59.6% [3] - Xinyi Energy (03868.HK) reported a revenue of HKD 1.21 billion, an increase of 7.7% year-on-year, with a net profit of HKD 0.45 billion, up 23.4% [4] - DTXS Silk Road Investment (02510.HK) issued a profit warning, expecting a mid-term net profit of approximately USD 180-200 million, a year-on-year increase of about 220% to 255% [5] - Lianhua Supermarket (00980.HK) issued a profit warning, expecting a mid-term net profit of approximately HKD 25-55 million [6] - Tibet Water Resources (01115.HK) issued a profit warning, expecting a mid-term net profit of approximately HKD 36 million, a year-on-year increase of about 300% [7] - Foton Motor (00420.HK) issued a profit warning, expecting a mid-term net profit of HKD 30.7 million, turning from loss to profit [8] - Hong Kong Travel (00308.HK) issued a profit warning, expecting a mid-term net loss exceeding HKD 70 million, turning from profit to loss [9] - Poly Property Group (00119.HK) issued a profit warning, expecting a mid-term net profit to decline by 40%-50% year-on-year [10] - Kefu Shan Group Holdings (08512.HK) issued a profit warning, expecting a mid-term net profit to decrease to approximately HKD 43-47 million [11] - Mobi Development (00947.HK) issued a profit warning, expecting a mid-term net loss of approximately HKD 32 million [12] - Changmao Biochemical Engineering (00954.HK) issued a profit warning, expecting a mid-term net loss of approximately HKD 24-27 million [13] - Yunyou Holdings (00484.HK) issued a profit warning, expecting a mid-term net loss to increase to approximately HKD 21 million [14] - Weiya Li (00854.HK) issued a profit warning, expecting a mid-term net profit of approximately HKD 15-25 million, turning from loss to profit [15] Group 2: Automotive Sales - BYD Company (01211.HK) reported sales of approximately 2.4903 million new energy vehicles in the first seven months, a year-on-year increase of 27.35% [16] - Great Wall Motors (02333.HK) reported total vehicle sales of approximately 674,200 units in the first seven months, a year-on-year increase of 3.57% [17] - Li Auto (02015.HK) delivered 30,731 new vehicles in July [18] - Geely Automobile (00175.HK) reported total vehicle sales of 237,700 units in July, a year-on-year increase of approximately 58% [19] Group 3: Company News - Sinopec Engineering (02386.HK) signed a front-end engineering design (FEED) contract for a large green hydrogen project in Yanbu, Saudi Arabia, with a contract value expected to reach several billion USD [20] - InnoCare Pharma (02577.HK) partnered with NVIDIA to jointly promote the large-scale implementation of 800 VDC power architecture in AI data centers [21] - Zijin Mining (02899.HK) received parliamentary approval for the mining lease of the Akyem gold mine in Ghana, with a total transaction value of USD 1 billion [22] - Codex-B (02487.HK) received approval from the Hong Kong Department of Health for the listing of CU-40102 (topical finasteride spray) for the treatment of androgenetic alopecia [23] - Mixue Group (02097.HK) subscribed to a wealth management product from Pudong Development Bank, involving an investment of HKD 300 million [24] Group 4: Buyback Activities - Hang Seng Bank (00011.HK) repurchased 200,000 shares at a cost of approximately HKD 22.5922 million, with repurchase prices ranging from HKD 112.4 to 114.3 [25] - Vitasoy International (00345.HK) repurchased 1.844 million shares at a cost of approximately HKD 16.89 million, with repurchase prices ranging from HKD 9.14 to 9.17 [26]

Core Viewpoint - Changmao Biological (00954) has issued a profit warning, expecting a net loss of approximately RMB 24 million to 27 million for the six months ending June 30, 2025, compared to a net loss of approximately RMB 18.786 million for the same period ending June 30, 2024 [1] Financial Performance - The board of directors attributes the anticipated financial performance to several factors, including a decline in product sales prices and intense market competition, which have led to reduced sales revenue and gross profit [1] - Additionally, there has been an increase in interest expenses included in the consolidated income statement, primarily due to a decrease in the amount of capitalized interest expenses for qualifying assets [1]

Core Viewpoint - Changmao Biological (00954.HK) expects to record a consolidated net loss attributable to shareholders of approximately RMB 24 million to RMB 27 million for the six months ending June 30, 2025, compared to a net loss of approximately RMB 18.786 million in the same period last year [1] Financial Performance Summary - The board believes that the financial performance during this period is primarily affected by two factors: (1) a decrease in sales revenue and gross profit due to declining product sales prices and intense market competition; and (2) an increase in interest expenses included in the consolidated income statement, resulting from a reduction in the amount of capitalized interest on qualifying assets [1]

Group 1 - The company, Changmao Biochemical Engineering Company Limited (00954.HK), has announced a board meeting scheduled for August 18, 2025, at 3 PM [1] - The agenda for the meeting includes the consideration and approval of the group's unaudited interim results for the six months ending June 30, 2025 [1] - The board will also discuss the potential declaration of dividends, if any, and consider the suspension of share transfer registration procedures if necessary [1]