港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任何部份內容而產生或因 倚賴該等內容而引致的任何損失承擔任何責任。 AEON STORES (HONG KONG) CO., LIMITED 永 旺 (香 港 )百貨有限公司 (於香港註冊成立之有限公司) (股份代號: 984) 有關租賃協議之須予披露交易 董事會欣然宣佈，於 2025 年 9 月 29 日，本公司非全資附屬公司永旺廣東（作為承租人）與 出租人（作為出租人）就租賃該處所訂立租賃協議，租期由承租日起計 12 年 6 個月。永旺 廣東向出租人租賃該處所以經營其零售業務。 根據香港財務報告準則第 16 號，永旺廣東訂立租賃協議將令本集團須確認該處所為使用 權資產。故此，根據上市規則，訂立租賃協議將被視為本集團收購資產。本集團根據租賃 協議所確認之使用權資產價值約為人民幣 9.51 百萬元。 由於按租賃協議項下擬進行的交易，本集團根據香港財務報告準則第 16 號確認之使用權 資產的價值計算，其最高適用百分比率（定義見上市規則）為 5%或以上，但低於 25%，訂 立 ...

(Incorporated in Hong Kong with limited liability) （ 於 香 港 註 冊 成 立 之 有 限 公 司 ） (Stock code: 984) （股份代號：984） NOTIFICATION LETTER 通知信函 26 September 2025 Dear Non-Registered Holder (Note 1) , AEON Stores (Hong Kong) Co., Limited (the "Company") Notice of Publication of 2025 Interim Report (the "Current Corporate Communication") The English and Chinese versions of the Current Corporate Communication of the Company are now available on the Company's website at www.aeonstores. com.hk and the Hong Kong Exchanges a ...

(Incorporated in Hong Kong with limited liability) （ 於 香 港 註 冊 成 立 之 有 限 公 司 ） (Stock code: 984) （股份代號：984） NOTIFICATION LETTER 通知信函 26 September 2025 Dear Registered Shareholder, AEON Stores (Hong Kong) Co., Limited (the "Company") Notice of Publication of Interim Report 2025 (the "Current Corporate Communication") The English and Chinese versions of the Current Corporate Communication of the Company are now available on the Company's website at www.aeonstores.com.hk and the Hong Kong Exchanges and Clearin ...

中期報告 2025 公司資料 董事會 執行董事 長島武德先生 （董事總經理） 久永晋也先生 非執行董事 後藤俊哉先生 （主席） 猪原弘行先生 橫地庸利先生 獨立非執行董事 水野英人先生 沈詠婷女士 黃美玲女士 提名委員會 後藤俊哉先生 （主席） 水野英人先生 沈詠婷女士 黃美玲女士 薪酬委員會 沈詠婷女士 （主席） 後藤俊哉先生 水野英人先生 黃美玲女士 審核委員會 黃美玲女士 （主席） 後藤俊哉先生 水野英人先生 沈詠婷女士 公司秘書 陳鄺良先生 核數師 畢馬威會計師事務所 執業會計師 於《會計及財務匯報局條例》下的 註冊公共利益實體核數師 往來銀行 Mizuho Bank, Ltd. 三菱日聯銀行 三井住友銀行 渣打銀行（香港）有限公司 香港上海滙豐銀行有限公司 股份過戶登記處 卓佳證券登記有限公司 香港夏慤道16號 遠東金融中心17樓 註冊辦事處 香港康山道2號 康怡廣場（南）地下至4樓 辦事處及主要營業地點 香港新界荃灣青山公路388號 中染大廈26樓07–11室 電話：(852) 2565 3600 傳真：(852) 2563 8654 股份代號 984 網址 www.aeonstores.com. ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | 截至月份: | 2025年8月31日 | 狀態: 新提交 | | --- | --- | --- | | 致：香港交易及結算所有限公司 | | | | 公司名稱: | 永旺(香港)百貨有限公司 | | | 呈交日期: | 2025年9月2日 | | | I. 法定/註冊股本變動 不適用 | | | FF301 第 1 頁 共 10 頁 v 1.1.1 FF301 II. 已發行股份及/或庫存股份變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00984 | 說明 | | | | | | | | | 已發行股份（不包括庫存股份）數目 | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | 260,000,000 | | 0 | | 260,000,000 | | 增加 / 減少 (-) | | | 0 | | ...

(於香港註冊成立之有限公司) (股份代號: 984) 延期寄發有關主要交易之通函 茲提述永旺(香港)百貨有限公司(「本公司」)日期為 2025 年 6 月 24 日及 2025 年 7 月 21 日之 公告(「該公告」)，內容為有關租賃協議之主要交易。除另有界定者外，本公告所用詞彙與該 公告所界定者具有相同涵義。 誠如該公告所披露，載有(其中包括)有關租賃協議及其項下擬進行的交易之進一步詳情之通 函(「通函」)，原預期將於 2025 年 8 月 29 日或之前寄發予股東以供參考。 港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任何部份內容而產生或因 倚賴該等內容而引致的任何損失承擔任何責任。 AEON STORES (HONG KONG) CO., LIMITED 永 旺 (香 港 )百 貨 有 限 公 司 由於本公司需要額外時間審定將載入通函之若干資料，現預期該通函將於 2025 年 9 月 30 日 或之前寄發。 承董事會命 永旺(香港)百貨有限公司 主席 後藤俊哉 香港，2025 年 8 月 29 日 於本公告 ...

Group 1 - The core revenue for Aeon (00984) for the first half of 2025 is approximately HKD 39.31 billion, representing a year-on-year decrease of 3% [1] - The company reported a loss attributable to shareholders of approximately HKD 2.17 billion, which is a 27% increase compared to the previous year, with a loss per share of HKD 0.8361 [1] - The Hong Kong business revenue decreased by 5.97% to HKD 17.84 billion, with a loss of HKD 1.62 billion, compared to a loss of HKD 1.443 billion in the first half of 2024 [1] Group 2 - Excluding foreign exchange factors, the adjusted loss for the Hong Kong business was HKD 1.41 billion, an improvement of 9.5% compared to the adjusted net loss of HKD 1.556 billion in the same period last year [1] - The gross margin for the mainland China division slightly improved due to a significant increase in private label sales [2] - The company opened five new independent supermarkets in the Greater Bay Area, responding to the consumption trend of Hong Kong residents shopping in mainland China [2]

Group 1 - The core viewpoint of the article highlights Aeon (00984) reporting a mid-year loss for 2025, with a revenue of approximately HKD 39.31 billion, a year-on-year decrease of 3% [1] - The company reported a loss attributable to shareholders of approximately HKD 2.17 billion, an increase of 27% year-on-year, with a loss per share of HKD 0.8361 [1] - The Hong Kong business segment experienced a revenue decline of 5.97% to HKD 17.84 billion, with a loss of HKD 1.62 billion compared to a loss of HKD 1.443 billion in the first half of 2024 [1] Group 2 - Excluding foreign exchange factors, the adjusted loss for the Hong Kong business was HKD 1.41 billion, an improvement of 9.5% compared to an adjusted net loss of HKD 1.556 billion in the first half of 2024 [1] - The management believes that excluding foreign exchange gains and losses provides a clearer picture of the operational efficiency of the core business, aiding investors in assessing the trend of ongoing improvements [1] - The mainland China division saw a slight increase in gross margin, primarily due to a significant rise in self-branded sales, with online sales also showing a year-on-year increase [2] Group 3 - The company has responded flexibly to market changes, capitalizing on the consumption trend of Hong Kong residents shopping in mainland China, opening five new independent supermarkets in the Greater Bay Area [2] - The new stores include locations in Longgang, Foshan, and multiple sites in Guangzhou, aimed at attracting new and loyal customers in the region [2] - The company is actively reviewing store performance, closing the Bao'an store in Shenzhen and renewing the lease for the Tianhe store in Guangzhou to optimize its store network and enhance overall efficiency [2]

格隆汇8月28日丨永旺(00984.HK)公告，于2025年上半年，集团收益按年减少3.0%至港币3,930.7百万 元。毛利率下跌0.4%至28.0%（2024：28.4%）。回顾期内公司拥有人应占亏损为港币217.4百万元 （2024年：亏损港币171.2百万元），亏损增加港币46.2百万元。期内集团的调整后EBITDA为亏损港币 158.3百万元（2024年：亏损港币145.8百万元），亏损增加港币12.5百万元。 ...

[Company Information and Report Statement](index=1&type=section&id=Company%20Information%20and%20Report%20Statement) This section provides an overview of AEON Stores (Hong Kong) Co., Limited and the disclaimer regarding the interim results report [Company Overview](index=1&type=section&id=Company%20Overview) This report, issued by AEON Stores (Hong Kong) Co., Limited, discloses the unaudited interim results for the six months ended June 30, 2025 - Company Name: **AEON STORES (HONG KONG) CO., LIMITED**[2](index=2&type=chunk) - Stock Code: **984**[2](index=2&type=chunk) - Reporting Period: Unaudited interim results for the six months ended **June 30, 2025**[3](index=3&type=chunk)[4](index=4&type=chunk) [Report Statement](index=1&type=section&id=Report%20Statement) Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited bear no responsibility for this announcement, make no representation, and accept no liability for any loss - The Hong Kong Stock Exchange and HKEX are not responsible for the content of this announcement, make no statements, and assume no liability[1](index=1&type=chunk) [Consolidated Financial Statements](index=1&type=section&id=Consolidated%20Financial%20Statements) This section presents the group's consolidated statements of profit or loss, comprehensive income, and financial position for the reporting period [Consolidated Statement of Profit or Loss](index=1&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, group revenue decreased by **3.0%** to **HKD 3,930.7 million**, and loss for the period expanded by **29.9%** to **HKD 226.4 million** Key Data from Consolidated Statement of Profit or Loss | Indicator | 6 Months Ended June 30, 2025 (HKD Thousand) | 6 Months Ended June 30, 2024 (HKD Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 3,930,714 | 4,052,133 | -3.0% | | Other Income | 218,487 | 235,046 | -7.0% | | Investment Income | 5,432 | 7,790 | -30.3% | | Purchases of goods and changes in inventories | (2,829,827) | (2,902,908) | -2.5% | | Staff Costs | (417,893) | (487,956) | -14.4% | | Loss Before Tax | (225,629) | (173,440) | +30.1% | | Loss for the Period | (226,372) | (174,188) | +29.9% | | Loss Attributable to Owners of the Company | (217,394) | (171,176) | +27.0% | | Loss Per Share (Basic and Diluted) | (83.61) HK cents | (65.84) HK cents | +27.0% | [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the group's total comprehensive loss for the period was **HKD 225.2 million**, an increase from **HKD 182.1 million** in the prior year Key Data from Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | 6 Months Ended June 30, 2025 (HKD Thousand) | 6 Months Ended June 30, 2024 (HKD Thousand) | | :--- | :--- | :--- | | Loss for the Period | (226,372) | (174,188) | | Fair value gain/(loss) on equity securities at fair value through other comprehensive income | 3,128 | (7,532) | | Exchange differences arising on translation of foreign operations | (1,940) | (377) | | Other comprehensive income for the period, net of tax | 1,188 | (7,909) | | Total Comprehensive Loss for the Period | (225,184) | (182,097) | | Total Comprehensive Loss Attributable to Owners of the Company | (216,932) | (179,233) | [Consolidated Statement of Financial Position](index=3&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the group's non-current and current assets both decreased, net current liabilities expanded, leading to a further increase in the deficit attributable to owners of the company Key Data from Consolidated Statement of Financial Position | Indicator | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current Assets | 3,419,596 | 3,609,049 | -5.3% | | Current Assets | 1,796,637 | 1,846,266 | -2.7% | | Current Liabilities | 3,210,713 | 3,045,539 | +5.4% | | Net Current Liabilities | (1,414,076) | (1,199,273) | +17.9% | | Total Assets Less Current Liabilities | 2,005,520 | 2,409,776 | -16.8% | | Non-current Liabilities | 2,661,445 | 2,840,517 | -6.3% | | Net Liabilities | (655,925) | (430,741) | +52.3% | | Deficit Attributable to Owners of the Company | (746,517) | (529,585) | +40.9% | [Notes to the Financial Statements](index=4&type=section&id=Notes%20to%20the%20Financial%20Statements) This section details the basis of preparation, accounting policy changes, revenue segmentation, and other financial disclosures [Basis of Preparation and Going Concern](index=4&type=section&id=Basis%20of%20Preparation%20and%20Going%20Concern) This interim results report is prepared in accordance with HKAS 34. The group faces significant going concern uncertainties due to losses, cash outflows from operations, and net current liabilities, but management expects continued financial support from the ultimate holding company - This interim results report is prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the Hong Kong Institute of Certified Public Accountants[7](index=7&type=chunk) - For the six months ended June 30, 2025, the group recorded a loss of **HKD 226,372,000** and net cash outflows from operating activities and lease liabilities of **HKD 80,135,000**[8](index=8&type=chunk) - As of June 30, 2025, the group's net current liabilities were **HKD 1,414,076,000**, indicating a material uncertainty that may cast significant doubt on its ability to continue as a going concern[8](index=8&type=chunk)[9](index=9&type=chunk) - Management expects to receive continued support from the ultimate holding company, **AEON Co., Ltd.**, including extensions of loan repayments and additional sufficient financial resources[9](index=9&type=chunk) [Changes in Accounting Policies](index=4&type=section&id=Changes%20in%20Accounting%20Policies) The accounting policies adopted in this interim report are consistent with the 2024 annual financial statements, with no significant impact from the first-time application of HKAS 21 amendments on foreign exchange rate changes - The accounting policies and methods of computation adopted in the interim financial report are consistent with those presented in the group's annual financial statements for the year ended **December 31, 2024**[10](index=10&type=chunk) - The first-time application of amendments to HKAS 21 (Effect of Foreign Exchange Rate Changes – Lack of Exchangeability) had no significant impact on the financial position and performance for the current and prior periods[11](index=11&type=chunk) [Revenue and Segment Information](index=5&type=section&id=Revenue%20and%20Segment%20Information) Group revenue primarily derives from direct sales and franchise sales in two reportable segments: Hong Kong and Mainland China. Total revenue decreased year-on-year, with both segments reporting expanded losses - Revenue represents the invoiced value of goods sold to customers, net of discounts, and franchise sales income, recognized when control of the goods is transferred to the customer[12](index=12&type=chunk) - The chief operating decision maker identifies Hong Kong and Mainland China as two reportable segments[12](index=12&type=chunk) [Revenue by Geographical Segment](index=5&type=section&id=Revenue%20by%20Geographical%20Segment) For the six months ended June 30, 2025, the group's total revenue decreased by **3.0%** year-on-year, with Hong Kong operations revenue down **5.97%** and Mainland China operations revenue slightly down **0.4%** Revenue from Contracts with Customers by Segment | Segment | 6 Months Ended June 30, 2025 (HKD Thousand) | 6 Months Ended June 30, 2024 (HKD Thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | **Hong Kong** | | | | | Direct Sales | 1,663,378 | 1,763,823 | -5.7% | | Franchise Sales Income | 120,750 | 133,602 | -9.6% | | **Subtotal (Hong Kong)** | **1,784,128** | **1,897,425** | **-5.97%** | | **Mainland China** | | | | | Direct Sales | 2,044,964 | 2,048,419 | -0.2% | | Franchise Sales Income | 101,622 | 106,289 | -4.4% | | **Subtotal (Mainland China)** | **2,146,586** | **2,154,708** | **-0.4%** | | **Total** | **3,930,714** | **4,052,133** | **-3.0%** | [Segment Results by Geographical Segment](index=5&type=section&id=Segment%20Results%20by%20Geographical%20Segment) For the six months ended June 30, 2025, Hong Kong segment loss expanded by **12.3%** to **HKD 162.0 million**, and Mainland China segment loss expanded by **78.7%** to **HKD 66.1 million** Segment Loss | Segment | 6 Months Ended June 30, 2025 (HKD Thousand) | 6 Months Ended June 30, 2024 (HKD Thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Hong Kong Segment Loss | (162,024) | (144,259) | +12.3% | | Mainland China Segment Loss | (66,050) | (36,971) | +78.7% | | Total Segment Loss | (228,074) | (181,230) | +25.8% | - Segment loss represents the loss generated by each segment, excluding investment income and finance costs[14](index=14&type=chunk) [Other Income and Gains/Losses](index=6&type=section&id=Other%20Income%20and%20Gains%2FLosses) For the six months ended June 30, 2025, other income decreased by **7.0%** year-on-year, mainly due to reduced platform collaboration income. Other gains and losses shifted from a gain to a loss, primarily due to exchange losses Other Income | Item | 2025 (HKD Thousand) | 2024 (HKD Thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Rental income from investment properties | 155,300 | 158,390 | -1.95% | | Tenant management fees and other income | 32,635 | 34,512 | -5.58% | | Platform collaboration income | 16,861 | 27,323 | -38.3% | | Government grants | 360 | - | N/A | | Sales of scrap materials | 1,355 | 1,406 | -3.63% | | Others | 11,976 | 13,415 | -10.7% | | **Total** | **218,487** | **235,046** | **-7.0%** | Other Gains and Losses | Item | 2025 (HKD Thousand) | 2024 (HKD Thousand) | Change | | :--- | :--- | :--- | :--- | | Exchange (loss)/gain, net | (21,089) | 11,271 | Shifted from gain to loss | | Loss on disposal/write-off of property, plant and equipment | (777) | (390) | Loss expanded | | Gain on lease modification | - | 1,058 | Shifted from gain to zero | | **Total** | **(21,866)** | **11,939** | **Shifted from gain to loss** | [Income Tax Expense](index=7&type=section&id=Income%20Tax%20Expense) For the six months ended June 30, 2025, the group's income tax expense was **HKD 743 thousand**, primarily from deferred tax and China withholding income tax. No Hong Kong profits tax or China corporate income tax was provided due to continuous tax losses in both regions Income Tax Expense | Item | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Current tax - China withholding income tax | 89 | - | | Deferred tax | 654 | 748 | | **Income tax expense for the period** | **743** | **748** | - The group continuously incurred tax losses in Hong Kong and Mainland China, thus no Hong Kong profits tax or China corporate income tax was provided[16](index=16&type=chunk)[17](index=17&type=chunk) [Dividends](index=7&type=section&id=Dividends) No dividends were declared to ordinary shareholders for the six months ended June 30, 2025, or after the reporting period - No dividends were declared to ordinary shareholders for the six months ended **June 30, 2025**, and **June 30, 2024**, or after the reporting period[18](index=18&type=chunk) [Loss Per Share](index=7&type=section&id=Loss%20Per%20Share) For the six months ended June 30, 2025, the basic loss per share attributable to owners of the company was **HKD 83.61 cents**, an increase from **HKD 65.84 cents** in the prior year Loss Per Share | Indicator | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :--- | :--- | :--- | | Loss for the period attributable to owners of the company | HKD 217,394,000 | HKD 171,176,000 | | Number of ordinary shares in issue | 260,000,000 shares | 260,000,000 shares | | Basic loss per share | (83.61) HK cents | (65.84) HK cents | - No diluted loss per share is presented as there were no dilutive potential ordinary shares in issue during both periods[20](index=20&type=chunk) [Trade Receivables](index=8&type=section&id=Trade%20Receivables) The group's trade receivables primarily arise from retail transactions settled by credit cards and electronic payments, with an average settlement period of **10 days**. As of the reporting date, most receivables are due within **30 days**, with no significant overdue balances or default risks - The group's trade receivables arise from retail transactions settled by credit cards or other electronic payment methods[21](index=21&type=chunk) - The average settlement period for amounts due from these credit card and other electronic payment service providers is **10 days**[21](index=21&type=chunk) - As of the reporting date, **HKD 28,959,000** (December 31, 2024: **HKD 28,726,000**) is due within **30 days**, with no significant overdue balances and no expected defaults[21](index=21&type=chunk) [Trade Payables](index=8&type=section&id=Trade%20Payables) As of June 30, 2025, the group's total trade payables increased to **HKD 1,060.8 million**, with approximately **86.8%** due within **60 days** Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | | :--- | :--- | :--- | | 0 to 60 Days | 920,921 | 872,264 | | 61 to 90 Days | 44,501 | 43,839 | | Over 90 Days | 95,426 | 89,151 | | **Total** | **1,060,848** | **1,005,254** | [Performance Review](index=9&type=section&id=Performance%20Review) This section reviews the group's performance in Hong Kong and Mainland China, considering macroeconomic factors and operational strategies [Macroeconomic Environment](index=9&type=section&id=Macroeconomic%20Environment) In the first half of 2025, Hong Kong and Mainland China economies gradually recovered, but consumer confidence remained low due to high interest rates, a declining property market, and the US-China trade war, pressuring the overall retail market - In the first half of **2025**, the economies of Hong Kong and Mainland China gradually recovered, but consumer confidence remained low[23](index=23&type=chunk) - Key influencing factors included high interest rates, a continued downturn in the property market, and the US-China trade war[23](index=23&type=chunk) [Hong Kong Operations Review](index=9&type=section&id=Hong%20Kong%20Operations%20Review) Hong Kong's retail sector performed weakly in the first half, impacted by cross-border consumption, e-commerce competition, and changing tourist spending patterns. The group responded with product reforms, store network optimization, structural reforms, and digital transformation, yet revenue and losses worsened - In the first half of **2025**, the provisional estimate of total retail sales value in Hong Kong decreased by **3.3%** compared to the same period last year, indicating weak overall consumption[24](index=24&type=chunk) - The group's own brand sales grew by over **30%**, and it launched the popular Japanese cartoon character 'Opanchu Usagi' series merchandise[24](index=24&type=chunk) - **AEON STYLE Kai Tak** grandly opened, **AEON STYLE Kornhill** reopened, and the group actively expanded small specialty stores such as 'Mono Mono', **DAISO Japan**, and **Living PLAZA by AEON**[25](index=25&type=chunk) - Structural reforms were implemented through optimizing human resource allocation, negotiating rent reductions with landlords, and enhancing product management efficiency[25](index=25&type=chunk) - The application of electronic shelf labels, self-checkout systems, and 'Mobile Assistant' was expanded and optimized, leading to good growth in **AEON App** sales[25](index=25&type=chunk) Hong Kong Operations Financial Performance | Indicator | H1 2025 (HKD Million) | H1 2024 (HKD Million) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,784.1 | 1,897.4 | -5.97% | | Business Loss | 162.0 | 144.3 | +12.3% | | Adjusted Loss for the Period (excluding exchange factors) | 140.8 | 155.6 | -9.5% | [Mainland China Operations Review](index=9&type=section&id=Mainland%20China%20Operations%20Review) Mainland China's economy saw a steady recovery with growth in total retail sales of consumer goods. The group improved gross profit margin, increased online sales, opened five new independent supermarkets in the Greater Bay Area, and adjusted its store network for efficiency. However, business revenue slightly decreased, and losses expanded - Mainland China's GDP grew by **5.2%** year-on-year in Q2 and **5.3%** in the first half. Total retail sales of consumer goods increased by **5.0%** year-on-year[27](index=27&type=chunk) - The gross profit margin of the Mainland China segment slightly improved, mainly due to a significant increase in own brand sales[28](index=28&type=chunk) - Online sales recorded a year-on-year increase, demonstrating the effectiveness of the group's e-commerce strategy[28](index=28&type=chunk) - During the period, five new independent supermarkets were opened, including **Shenzhen Longgang Renheng Store**, **Foshan MixC Store**, **Guangzhou Hengbao Store**, **Guangzhou Link Store**, and **Guangzhou Chengguanghui Store**, further expanding the market presence in the Greater Bay Area[28](index=28&type=chunk) - The store network layout was adjusted by closing the **Shenzhen Bao'an Store** and completing the lease renewal for the **Guangzhou Tianhe Store**[28](index=28&type=chunk) Mainland China Operations Financial Performance | Indicator | H1 2025 (HKD Million) | H1 2024 (HKD Million) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 2,146.6 | 2,154.7 | -0.4% | | Business Loss | 66.1 | 37.0 | +78.7% | [Business Outlook](index=10&type=section&id=Business%20Outlook) This section outlines the group's strategic plans and capital expenditure for its Hong Kong and Mainland China operations [Hong Kong Operations Outlook](index=10&type=section&id=Hong%20Kong%20Operations%20Outlook) Facing challenges from the US-China trade war, changing tourist consumption patterns, and prevalent online shopping, the group will continue product reforms, increase digital transformation investment, expand small specialty stores, and optimize operational management systems in the second half to enhance profitability - In the second half, the group will continue to advance product reforms, increase sales of higher-margin own brands, seek more cartoon IP brand collaborations, and boost direct imports from regions like Japan and Southeast Asia[29](index=29&type=chunk) - Investment in digital transformation and e-commerce will be increased, introducing smart shopping carts and intelligent loss prevention systems, optimizing member management, launching a linkage program with Mainland company members, and launching a WeChat mini-program in July[30](index=30&type=chunk) - The group will focus on expanding small specialty store businesses such as 'Mono Mono', **Living PLAZA by AEON**, and **DAISO Japan**, planning to open at least **3 'Mono Mono' stores** and **1 DAISO Japan store** in the second half[31](index=31&type=chunk) - Existing operating and management systems will be continuously reviewed and reformed, logistics costs optimized, and **TOPVALU** vending machines introduced to control labor costs and boost sales[31](index=31&type=chunk) [Mainland China Operations Outlook](index=11&type=section&id=Mainland%20China%20Operations%20Outlook) The group maintains a cautiously optimistic outlook for Mainland China operations, expecting government stimulus measures to boost demand, especially in the Greater Bay Area. Three new **AEON** stores are planned for the Greater Bay Area in the second half to accelerate market expansion - The group holds a cautiously optimistic view on the future development of its Mainland China operations, expecting various government-introduced consumption stimulus measures to effectively boost retail demand[32](index=32&type=chunk) - In the second half, the group plans to open **3 new AEON stores** in the Greater Bay Area (**AEON Guangzhou Panyu K11 Store**, **AEON Jiangmen Lihe Store**, and **AEON Guangzhou Tower Plaza Store**), further expanding its store network[32](index=32&type=chunk) [Group Capital Expenditure Plan](index=11&type=section&id=Group%20Capital%20Expenditure%20Plan) According to the 2025 investment plan, the group anticipates total capital expenditure of approximately **HKD 108.0 million** in the second half, primarily for new store openings, store renovations, and IT system upgrades - Based on the **2025** investment plan, the group's total capital expenditure for the second half is estimated to be approximately **HKD 108.0 million**[33](index=33&type=chunk) - Capital expenditure is primarily allocated to new store openings, store renovations, and upgrades to information technology systems[33](index=33&type=chunk) [Financial Review](index=11&type=section&id=Financial%20Review) This section provides a detailed financial review, covering overall performance, cash flow, liquidity, and adjusted EBITDA reconciliation [Overall Financial Performance](index=11&type=section&id=Overall%20Financial%20Performance) In the first half of 2025, group revenue decreased by **3.0%**, and gross profit margin fell by **0.4%**. Staff costs decreased as a percentage of revenue, but other operating expenses increased. Exchange losses caused other gains and losses to turn from profit to loss, ultimately expanding the loss attributable to owners of the company Key Data on Overall Financial Performance | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | HKD 3,930.7 million | HKD 4,052.1 million | -3.0% | | Gross Profit Margin | 28.0% | 28.4% | -0.4% | | Other Income | HKD 218.5 million | HKD 235.0 million | -7.0% | | Staff Costs | Decreased 14.4% | | Percentage of revenue decreased to 10.6% (2024: 12.0%) | | Lease-related expenses | Decreased 1.6% | | Ratio to revenue increased to 13.0% (2024: 12.8%) | | Other operating expenses | Increased 3.8% | | Ratio to revenue increased to 13.4% (2024: 12.5%) | | Exchange Loss | HKD 21.1 million | Exchange gain HKD 11.3 million | Shifted from gain to loss | | Loss Attributable to Owners of the Company | HKD 217.4 million | HKD 171.2 million | Loss increased by HKD 46.2 million | | Adjusted EBITDA | Loss HKD 158.3 million | Loss HKD 145.8 million | Loss increased by HKD 12.5 million | | Capital Expenditure | HKD 73.1 million | | | | Additions to right-of-use assets | HKD 170.0 million | HKD 787.3 million | | | Additions to lease liabilities | HKD 172.3 million | HKD 826.8 million | | - The Board resolved not to declare an interim dividend for the six months ended **June 30, 2025**[35](index=35&type=chunk) [Cash Flow and Liquidity](index=12&type=section&id=Cash%20Flow%20and%20Liquidity) As of June 30, 2025, the group maintained a net cash position, though cash and bank balances slightly decreased. The gearing ratio increased, primarily due to new borrowings from the ultimate holding company. Net current liabilities expanded, but the Board believes sufficient funding sources exist to meet financial obligations Key Data on Cash Flow and Liquidity | Indicator | June 30, 2025 (HKD Million) | December 31, 2024 (HKD Million) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and bank balances and short-term time deposits | 814.9 | 830.6 | -1.9% | | Gearing Ratio | -57.23% | -53.32% | Increased | | Pledged bank deposits (for lease deposits) | 34.4 | 36.8 | -6.6% | | Pledged bank deposits (for stored value cards) | 7.1 | 7.0 | +1.4% | | Total lease liabilities | 3,261.2 | 3,463.9 | -5.8% | | Lease liabilities due within one year | 722.7 | 757.6 | -4.6% | | Net Current Liabilities | 1,414.1 | 1,199.3 | +17.9% | - The increase in gearing ratio was due to new borrowings of **HKD 145.7 million** from the ultimate holding company, **AEON Co Ltd**[37](index=37&type=chunk) - The Directors believe that the group has sufficient funding sources to finance its operations for the foreseeable future and to meet its financial obligations as they fall due[38](index=38&type=chunk) [Adjusted EBITDA Reconciliation](index=12&type=section&id=Adjusted%20EBITDA%20Reconciliation) Management believes Adjusted EBITDA more accurately reflects the group's operating earnings. For the six months ended June 30, 2025, Adjusted EBITDA loss was **HKD 158.3 million**, an increase from **HKD 145.8 million** in the prior year - Management believes that Adjusted EBITDA more accurately reflects the group's operating earnings[39](index=39&type=chunk) Adjusted EBITDA Reconciliation Table | Item | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Loss for the Period | (226,372) | (174,188) | | Income tax expense | 743 | 748 | | Depreciation of investment properties | 36,429 | 37,659 | | Depreciation of property, plant and equipment | 70,791 | 67,231 | | Depreciation of right-of-use assets | 334,687 | 320,461 | | Interest on lease liabilities | 110,010 | 96,616 | | Investment income | (5,432) | (7,790) | | Interest income on lease deposits | (6,032) | (5,236) | | Other gains and losses | 21,866 | (11,939) | | Finance costs | 2,987 | - | | Repayment of lease liabilities | (387,997) | (372,751) | | Interest on lease liabilities | (110,010) | (96,616) | | **Adjusted EBITDA** | **(158,325)** | **(145,800)** | [Other Information](index=13&type=section&id=Other%20Information) This section covers human resources, securities transactions, public float, corporate governance, and interim report publication details [Human Resources](index=13&type=section&id=Human%20Resources) As of June 30, 2025, the group employed approximately **4,929** full-time and **4,023** part-time staff. The group is committed to providing education and career development opportunities, fostering a positive work environment to enhance employee skills and ultimately benefit customers - As of **June 30, 2025**, the group employed approximately **4,929** full-time and **4,023** part-time staff in Hong Kong and Mainland China[41](index=41&type=chunk) - The group provides education and career development opportunities to enhance employee skills and professional knowledge, and creates a positive work environment[41](index=41&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=13&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Listed%20Securities) For the six months ended June 30, 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities, and the company held no treasury shares - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the six months ended **June 30, 2025**[42](index=42&type=chunk) - As of **June 30, 2025**, and up to the date of this report, the company held no treasury shares[42](index=42&type=chunk) [Sufficient Public Float](index=13&type=section&id=Sufficient%20Public%20Float) Based on public information and the directors' knowledge, the company maintained a sufficient public float for the six months ended June 30, 2025, and up to the date of this announcement - The company maintained a sufficient public float for the six months ended **June 30, 2025**, and up to the date of this announcement[43](index=43&type=chunk) [Corporate Governance](index=13&type=section&id=Corporate%20Governance) For the six months ended June 30, 2025, the company's Board of Directors complied with the Code Provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules and adopted the Model Code for Securities Transactions by Directors - The company's Board of Directors has consistently complied with the Code Provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules[44](index=44&type=chunk) - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, as set out in Appendix C3 of the Listing Rules, as its code of conduct for directors' securities transactions and confirmed compliance[44](index=44&type=chunk) [Publication of Interim Report](index=13&type=section&id=Publication%20of%20Interim%20Report) The company's Audit Committee has reviewed the unaudited interim results for the six months ended June 30, 2025, and the interim report will be published on the Stock Exchange and the company's website - The company's Audit Committee, together with management, has reviewed the unaudited interim results for the six months ended **June 30, 2025**[45](index=45&type=chunk) - The interim report for the six months ended **June 30, 2025**, will be published on the Stock Exchange and the company's website, respectively[46](index=46&type=chunk)