Core Insights - As of September 29, a total of 82 stocks reached their 52-week highs, with notable performances from Oriental University City Holdings (08067), China Integrated Holdings (01027), and Wisdom Pacific (08147) [1] 52-Week Highs Summary - Oriental University City Holdings (08067) closed at 0.380, with a peak price of 0.710, achieving a high rate of 61.36% [2] - China Integrated Holdings (01027) closed at 2.970, with a peak price of 3.140, achieving a high rate of 34.19% [2] - Wisdom Pacific (08147) closed at 0.620, with a peak price of 0.650, achieving a high rate of 27.45% [2] - Other notable stocks include Dida Chuxing (02559) with a high rate of 22.66% and China Smart Technology (00464) with a high rate of 21.70% [2] 52-Week Lows Summary - China Information Technology (08178) reached a low of 1.540, with a lowest price of 1.380, reflecting a low rate of -14.29% [3] - Economic Development Properties (01354) closed at 4.800, with a lowest price of 4.620, reflecting a low rate of -7.78% [3] - Metalight (02605) closed at 4.050, with a lowest price of 4.000, reflecting a low rate of -6.98% [3]

[Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20PROFIT%20OR%20LOSS%20AND%20OTHER%20COMPREHENSIVE%20INCOME) For the six months ended June 30, 2025, the company's revenue decreased by 7.2% to 173,416 thousand RMB, but loss significantly narrowed to 3,488 thousand RMB, a substantial improvement from 11,985 thousand RMB in the prior period, with basic and diluted loss per share at 0.85 RMB cents Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Revenue | 173,416 | 186,910 | | Cost of sales | (157,497) | (168,464) | | Gross profit | 15,919 | 18,446 | | Other income and net other gains/(losses) | 9,371 | (1,368) | | Selling and distribution expenses | (8,304) | (7,851) | | Administrative expenses | (18,220) | (19,318) | | Finance costs | (1,735) | (1,886) | | Loss before tax | (2,969) | (11,977) | | Income tax expense | (519) | (8) | | Loss for the period | (3,488) | (11,985) | | Loss for the period attributable to owners of the Company | (3,488) | (11,985) | | Basic and diluted loss per share (RMB cents) | (0.85) | (2.91) | - Loss for the period significantly narrowed from approximately **12 million RMB** in H1 2024 to approximately **3 million RMB** in H1 2025[4](index=4&type=chunk)[77](index=77&type=chunk) - Basic and diluted loss per share decreased from **2.91 RMB cents** in H1 2024 to **0.85 RMB cents** in H1 2025[4](index=4&type=chunk)[77](index=77&type=chunk) [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20FINANCIAL%20POSITION) As of June 30, 2025, the Group's total assets slightly increased, while net current assets and total equity slightly decreased, driven by a significant increase in bank balances and cash, and a reduction in inventories and trade receivables Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | **Non-current assets** | | | | Property, plant and equipment | 44,329 | 46,003 | | Right-of-use assets | 11,782 | 12,050 | | **Current assets** | | | | Inventories | 111,830 | 135,648 | | Financial assets at fair value through profit or loss | 12,268 | 6,427 | | Trade receivables | 102,053 | 114,156 | | Prepayments and other receivables | 58,328 | 47,907 | | Loan receivables | 10,101 | 10,398 | | Pledged time deposits | 23,030 | 22,843 | | Bank balances and cash | 38,644 | 4,145 | | **Current liabilities** | | | | Trade and bills payables | 58,414 | 51,398 | | Accruals, other payables and contract liabilities | 8,329 | 12,595 | | Bank borrowings | 96,120 | 81,470 | | Tax payable | 2,102 | 2,665 | | **Total equity** | 247,400 | 251,449 | - Bank balances and cash significantly increased from approximately **4.1 million RMB** as of December 31, 2024, to approximately **38.6 million RMB** as of June 30, 2025[7](index=7&type=chunk) - Inventories decreased by approximately **17.5%** to **111,830 thousand RMB**, and trade receivables decreased by approximately **10.5%** to **102,053 thousand RMB**[7](index=7&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=4&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CHANGES%20IN%20EQUITY) For the six months ended June 30, 2025, the Group's total equity decreased from 251,449 thousand RMB at the beginning of the year to 247,400 thousand RMB, primarily due to the loss for the period and negative exchange differences, partially offset by shareholder capital contributions Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30) | Indicator | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | As at 1 January (audited) | 251,449 | 239,598 | | Loss for the period | (3,488) | (11,985) | | Exchange differences arising on translation of financial statements | (582) | 454 | | Total comprehensive expense for the period | (4,070) | (11,531) | | Capital contribution from shareholders | 21 | 194 | | Lapsed share options | – | – | | As at 30 June (unaudited) | 247,400 | 228,261 | - In H1 2025, loss for the period was **3,488 thousand RMB**, a significant narrowing from **11,985 thousand RMB** in H1 2024[9](index=9&type=chunk) - In H1 2025, exchange differences arising on translation of financial statements were a negative **582 thousand RMB**, compared to a positive **454 thousand RMB** in H1 2024[9](index=9&type=chunk) [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, the Group generated net cash of 19,496 thousand RMB from operating activities, a significant improvement from a net outflow, resulting in a net increase of 34,532 thousand RMB in cash and cash equivalents Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Indicator | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Net cash generated from/(used in) operating activities | 19,496 | (28,531) | | Net cash (used in)/generated from investing activities | (519) | 5,026 | | Net cash generated from financing activities | 15,555 | 21,306 | | Net increase/(decrease) in cash and cash equivalents | 34,532 | (2,199) | | Effect of foreign exchange rate changes | (33) | 125 | | Cash and cash equivalents at 1 January | 4,145 | 13,094 | | Cash and cash equivalents at 30 June | 38,644 | 11,020 | - Operating cash flow improved from a net outflow of **28,531 thousand RMB** in H1 2024 to a net inflow of **19,496 thousand RMB** in H1 2025, indicating improved operating conditions[13](index=13&type=chunk) - Bank balances and cash at period-end increased from **11,020 thousand RMB** in H1 2024 to **38,644 thousand RMB** in H1 2025[13](index=13&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=7&type=section&id=NOTES%20TO%20THE%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) These notes provide detailed information on the Group's financial performance, position, and cash flows, including accounting policies, segment information, and key financial metrics, prepared in accordance with relevant accounting standards [1. General Information of the Group](index=7&type=section&id=1.%20GENERAL%20INFORMATION%20OF%20THE%20GROUP) China Integrated Holdings Limited, incorporated in the Cayman Islands and listed on the HKEX since February 13, 2015, primarily engages in investment holding, with its main subsidiaries focused on umbrella manufacturing and sales, using RMB as its functional and presentation currency - The Company was incorporated in the Cayman Islands on **June 12, 2014**, and listed on the Main Board of the Stock Exchange of Hong Kong on **February 13, 2015**[14](index=14&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk) - The Company is engaged in investment holding, while its principal subsidiaries are engaged in the manufacturing and sale of umbrellas[14](index=14&type=chunk)[18](index=18&type=chunk) - The functional currency of the Company and its PRC subsidiaries is **RMB**, and the condensed consolidated financial statements are presented in **RMB**[15](index=15&type=chunk)[18](index=18&type=chunk) [2.1 Basis of Preparation](index=7&type=section&id=2.1%20BASIS%20OF%20PREPARATION) The condensed consolidated financial statements are prepared in accordance with HKAS 34 "Interim Financial Reporting" and Appendix D2 of the Listing Rules, using a historical cost basis consistent with the 2024 annual financial statements - The financial statements are prepared in accordance with **HKAS 34 "Interim Financial Reporting"** and **Appendix D2 of the Listing Rules**[16](index=16&type=chunk)[19](index=19&type=chunk) - The statements are prepared on a **historical cost basis**, with accounting policies and methods of computation consistent with those used in the 2024 annual consolidated financial statements[17](index=17&type=chunk)[19](index=19&type=chunk) [2.2 Principal Accounting Policies](index=8&type=section&id=2.2%20PRINCIPAL%20ACCOUNTING%20POLICIES) New and revised HKFRSs, including HKAS 21 (Amendments) – Lack of Exchangeability, were first applied in this interim period but had no material impact on the Group's financial performance or position - New and revised **HKFRSs**, including **HKAS 21 (Amendments) – Lack of Exchangeability**, were first applied in this period[23](index=23&type=chunk)[24](index=24&type=chunk) - The application of new and revised standards had **no material impact** on the Group's financial performance and position for the current and prior periods[23](index=23&type=chunk)[24](index=24&type=chunk) [3. Revenue](index=8&type=section&id=3.%20REVENUE) Group revenue primarily represents amounts received and receivable from the sale of goods in the ordinary course of business, net of discounts and sales returns, totaling 173,416 thousand RMB for the six months ended June 30, 2025 - Revenue represents amounts received and receivable from the sale of goods in the ordinary course of business, net of discounts and sales returns[25](index=25&type=chunk) Revenue from Contracts with Customers (For the six months ended June 30) | Revenue Source | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Sale of goods | 173,416 | 186,910 | [4. Segment Information](index=8&type=section&id=4.%20SEGMENT%20INFORMATION) The Group operates in a single segment, manufacturing and selling umbrellas, with revenue analysis provided by product category, geographical location, and major customers, showing growth in POE and nylon umbrellas and in the Japanese market, despite an overall revenue decline [Product Information](index=9&type=section&id=PRODUCT%20INFORMATION) The Group's main products include POE umbrellas, nylon umbrellas, and umbrella components; for the six months ended June 30, 2025, revenue from POE and nylon umbrellas increased, while umbrella components revenue significantly decreased, contributing to the overall revenue decline Revenue Analysis by Product Category (For the six months ended June 30) | Product Category | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | POE umbrellas | 37,026 | 28,662 | | Nylon umbrellas | 87,568 | 82,340 | | Umbrella components | 48,822 | 75,908 | - POE umbrella revenue increased by **29.2%** year-on-year, and nylon umbrella revenue increased by **6.3%** year-on-year[30](index=30&type=chunk) - Umbrella components revenue significantly decreased by **35.7%** year-on-year, which is the primary reason for the overall revenue decline[30](index=30&type=chunk)[78](index=78&type=chunk) [Geographical Information](index=9&type=section&id=GEOGRAPHICAL%20INFORMATION) The Group operates in China with customers primarily in Japan, Cambodia, and China; for the six months ended June 30, 2025, revenue from Japan significantly increased, while revenue from China and Cambodia decreased, impacting overall geographical revenue distribution Revenue Analysis by Geographical Location (For the six months ended June 30) | Region | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Japan | 76,587 | 59,827 | | China | 46,656 | 55,074 | | Cambodia | 41,151 | 59,070 | | Others | 9,022 | 12,939 | - Revenue from Japan increased by **28.0%** year-on-year, becoming the largest market[33](index=33&type=chunk) - Revenue from China and Cambodia decreased by **15.3%** and **30.3%** year-on-year, respectively[33](index=33&type=chunk) [Information About Major Customers](index=10&type=section&id=INFORMATION%20ABOUT%20MAJOR%20CUSTOMERS) For the six months ended June 30, 2025, revenue from Customer A slightly increased, while Customer B's revenue decreased, with both major customers collectively contributing approximately 37% of the Group's total revenue Major Customer Revenue (For the six months ended June 30) | Customer | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Customer A | 29,691 | 28,099 | | Customer B | 34,574 | 36,310 | - Customer A's revenue increased by **5.7%** year-on-year, while Customer B's revenue decreased by **4.8%** year-on-year[39](index=39&type=chunk) [5. Income Tax Expense](index=10&type=section&id=5.%20INCOME%20TAX%20EXPENSE) For the six months ended June 30, 2025, the Group's income tax expense was 519 thousand RMB, primarily from China corporate income tax at a 25% rate, with no income or profits tax payable by subsidiaries in Cayman Islands, BVI, and Hong Kong Income Tax Expense (For the six months ended June 30) | Tax Category | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | China corporate income tax | 519 | 8 | - The corporate income tax rate for PRC companies is **25%**[41](index=41&type=chunk) - Subsidiaries in the Cayman Islands, British Virgin Islands, and Hong Kong were **not subject to income or profits tax** for the period[41](index=41&type=chunk) [6. Loss for the Period](index=11&type=section&id=6.%20LOSS%20FOR%20THE%20PERIOD) The loss for the period is derived after deducting various expenses, where total staff costs, cost of materials used in production, and research and development expenses increased, while net exchange gains positively influenced the narrowing loss Loss for the Period Deducted/(Credited) Items (For the six months ended June 30) | Item | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Total staff costs | 19,376 | 18,388 | | Cost of materials used in production | 164,696 | 183,332 | | Depreciation of property, plant and equipment | 2,410 | 2,142 | | Depreciation of right-of-use assets | 268 | 268 | | Net exchange (gains)/losses | (2,595) | 746 | | Finance costs – bank borrowings | 1,735 | 1,886 | | Loss on disposal of property, plant and equipment | 176 | 27 | | Research and development expenses | 6,637 | 6,409 | - Total staff costs increased by **5.4%** year-on-year, and research and development expenses increased by **3.6%** year-on-year[44](index=44&type=chunk) - Net exchange gains were **2,595 thousand RMB**, compared to net exchange losses of **746 thousand RMB** in the prior period, positively contributing to the narrowing loss for the current period[44](index=44&type=chunk) [7. Loss Per Share](index=11&type=section&id=7.%20LOSS%20PER%20SHARE) For the six months ended June 30, 2025, basic and diluted loss per share attributable to owners of the Company significantly narrowed to 0.85 RMB cents from 2.91 RMB cents in the prior period, with both being identical due to the anti-dilutive effect of share options Loss Per Share (For the six months ended June 30) | Indicator | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Loss for the period attributable to owners of the Company for basic and diluted loss per share calculation | (3,488) | (11,985) | | Weighted average number of ordinary shares for basic and diluted loss per share calculation ('000 shares) | 412,550 | 412,550 | | Basic and diluted loss per share (RMB cents) | (0.85) | (2.91) | - Basic and diluted loss per share were identical for both periods due to the **anti-dilutive effect of share options**[49](index=49&type=chunk)[52](index=52&type=chunk) [8. Dividend](index=12&type=section&id=8.%20DIVIDEND) For the six months ended June 30, 2025, the Board of Directors did not recommend the payment of any interim dividend, consistent with the prior period - No dividends were paid, declared, or proposed for the six months ended **June 30, 2025**[50](index=50&type=chunk)[53](index=53&type=chunk) - The Directors did not recommend the payment of any interim dividend (2024: nil)[50](index=50&type=chunk)[53](index=53&type=chunk) [9. Property, Plant and Equipment](index=12&type=section&id=9.%20PROPERTY%2C%20PLANT%20AND%20EQUIPMENT) For the six months ended June 30, 2025, the Group acquired approximately 912 thousand RMB in property, plant and equipment, a significant increase from the prior period, with no impairment losses recognized in either period - For the six months ended June 30, 2025, additions to property, plant and equipment amounted to approximately **912 thousand RMB**, a significant increase from **111 thousand RMB** in the prior period of 2024[51](index=51&type=chunk)[54](index=54&type=chunk) - No impairment losses were recognized for property, plant and equipment in either period[51](index=51&type=chunk)[54](index=54&type=chunk) [10. Trade Receivables](index=13&type=section&id=10.%20TRADE%20RECEIVABLES) The Group generally grants credit terms of 30 to 150 days to trade customers; as of June 30, 2025, total trade receivables decreased, with a significant reduction in receivables within 90 days and an increase in those over 91 days - The Group generally grants credit terms of **30 to 150 days** to trade customers[55](index=55&type=chunk)[56](index=56&type=chunk) Ageing Analysis of Trade Receivables (As of June 30) | Ageing | 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | 0 to 90 days | 42,976 | 74,237 | | 91 to 180 days | 20,660 | 15,030 | | 181 to 365 days | 16,165 | 6,762 | | Over 365 days | 22,252 | 18,127 | | **Total** | **102,053** | **114,156** | - Trade receivables within **0 to 90 days** decreased from approximately **74.2 million RMB** as of December 31, 2024, to approximately **43.0 million RMB** as of June 30, 2025[57](index=57&type=chunk) [11. Loan Receivables](index=13&type=section&id=11.%20LOAN%20RECEIVABLES) As of June 30, 2025, the Group's total loan receivables were 10,101 thousand RMB, slightly lower than December 31, 2024, comprising unsecured, fixed-rate loans denominated in HKD, bearing 8% annual interest, and repayable within one year Loan Receivables (As of June 30) | Item | 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Fixed-rate loan receivables | 13,234 | 13,623 | | Less: Provision for credit losses | (3,133) | (3,225) | | **Total** | **10,101** | **10,398** | - Loan receivables are unsecured, bear fixed interest at **8% per annum**, and are repayable within one year[59](index=59&type=chunk)[60](index=60&type=chunk) - Loan receivables are denominated in **HKD**, which is the functional currency of the relevant Group entity[60](index=60&type=chunk) [12. Trade and Bills Payables](index=14&type=section&id=12.%20TRADE%20AND%20BILLS%20PAYABLES) As of June 30, 2025, total trade and bills payables increased to 58,414 thousand RMB, with a significant rise in payables within 90 days and a substantial decrease in those between 181 and 365 days, while credit terms for goods purchased range from 30 to 120 days Trade and Bills Payables (As of June 30) | Item | 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Trade payables | 24,537 | 20,140 | | Bills payables | 33,877 | 31,258 | | **Total** | **58,414** | **51,398** | Ageing Analysis of Trade and Bills Payables (As of June 30) | Ageing | 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | 0 to 90 days | 41,269 | 33,097 | | 91 to 180 days | 16,327 | 15,375 | | 181 to 365 days | 818 | 2,926 | - Credit terms for goods purchased range from **30 to 120 days**[65](index=65&type=chunk) [13. Bank Borrowings](index=14&type=section&id=13.%20BANK%20BORROWINGS) As of June 30, 2025, the Group's bank borrowings increased to 96,120 thousand RMB, all secured and repayable within one year, bearing fixed annual interest rates from 3.40% to 4.55%, and collateralized by the Group's buildings, right-of-use assets, and personal guarantees from Director Mr. Wong and his spouse Bank Borrowings (As of June 30) | Item | 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Secured, repayable within one year | 96,120 | 81,470 | - Bank borrowings bear fixed annual interest rates ranging from **3.40% to 4.55%**[69](index=69&type=chunk)[71](index=71&type=chunk) - Borrowings are secured by the Group's buildings (carrying amount of approximately **33,160 thousand RMB**), right-of-use assets (carrying amount of approximately **11,782 thousand RMB**), and personal guarantees from Director Mr. Wong and his spouse[70](index=70&type=chunk)[71](index=71&type=chunk) [14. Share Capital](index=15&type=section&id=14.%20SHARE%20CAPITAL) As of June 30, 2025, the Company's authorized and issued share capital remained unchanged, with ordinary shares having a par value of 0.032 HKD per share, entitling holders to dividends, one vote per share, and equal interests in residual assets Share Capital (As of June 30) | Item | June 30, 2025 ('000 shares) | December 31, 2024 ('000 shares) | | :--- | :--- | :--- | | Number of authorized shares | 1,562,500 | 1,562,500 | | Number of issued and fully paid shares | 412,550 | 412,550 | | Amount of issued and fully paid shares (thousand HKD) | 13,201 | 13,201 | | Par value of ordinary shares (thousand RMB) | 10,818 | 10,818 | - Holders of ordinary shares are entitled to dividends declared from time to time and one vote per share at Company general meetings[74](index=74&type=chunk) - All ordinary shares have equal interests in the residual assets of the Company[74](index=74&type=chunk) [Management Discussion and Analysis](index=16&type=section&id=MANAGEMENT%20DISCUSSION%20AND%20ANALYSIS) This section provides an overview of the Group's financial performance, liquidity, and future outlook, highlighting key operational achievements, financial trends, and strategic initiatives for the period [Interim Dividend](index=16&type=section&id=INTERIM%20DIVIDEND) The Board of Directors does not recommend the payment of any interim dividend for the current period, consistent with the prior period - The Board of Directors does not recommend the payment of any interim dividend for the current period (2024: nil)[75](index=75&type=chunk)[80](index=80&type=chunk) [Business Review](index=16&type=section&id=BUSINESS%20REVIEW) The Group primarily manufactures and sells POE umbrellas, nylon umbrellas, and umbrella components, ranking among China's largest umbrella exporters and plastic umbrella manufacturers, and is actively exploring new business opportunities for diversification - The Group is principally engaged in the manufacturing and sale of **POE umbrellas, nylon umbrellas, and umbrella components** to customers[76](index=76&type=chunk)[81](index=81&type=chunk) - The Group is one of the largest umbrella and parasol exporters and plastic umbrella manufacturers in China by export volume and sales volume, and one of the largest plastic umbrella suppliers in Japan[76](index=76&type=chunk)[81](index=81&type=chunk) - To enrich its business and explore potential opportunities, the Group is actively exploring and developing business opportunities and projects[76](index=76&type=chunk)[81](index=81&type=chunk) [Financial Review](index=16&type=section&id=FINANCIAL%20REVIEW) The Group's revenue decreased by 7.5% to 173 million RMB, mainly due to reduced demand for umbrella components; despite this, loss attributable to owners significantly narrowed to 3 million RMB due to lower cost of sales and increased other income and gains [Results](index=16&type=section&id=RESULTS) For the period, the Group's revenue decreased by 7.5% year-on-year to approximately 173 million RMB, while loss attributable to owners significantly narrowed to approximately 3 million RMB, with basic loss per share at 0.85 RMB cents - For the period, the Group's revenue decreased to approximately **173 million RMB**, a decrease of approximately **7.5%** compared to H1 2024[77](index=77&type=chunk)[82](index=82&type=chunk) - Loss attributable to owners of the Company was approximately **3 million RMB**, compared to a loss of approximately **12 million RMB** in H1 2024[77](index=77&type=chunk)[82](index=82&type=chunk) - The Company's basic loss per share was **0.85 RMB cents**[77](index=77&type=chunk)[82](index=82&type=chunk) [Revenue](index=16&type=section&id=REVENUE) Revenue decreased by approximately 7.5% from 187 million RMB in H1 2024 to 173 million RMB in the current period, primarily due to reduced demand for umbrella components - Revenue decreased by approximately **7.5%** from approximately **187 million RMB** in H1 2024 to **173 million RMB** in the current period[78](index=78&type=chunk)[83](index=83&type=chunk) - The decrease in revenue was mainly due to reduced demand for umbrella components compared to the prior period[78](index=78&type=chunk)[83](index=83&type=chunk) [Cost of Sales](index=16&type=section&id=COST%20OF%20SALES) Cost of sales decreased by approximately 6.5% from 168 million RMB in H1 2024 to 157 million RMB in the current period, primarily due to reduced direct labor costs, consistent with the Group's revenue decline - Cost of sales decreased by approximately **6.5%** from approximately **168 million RMB** in H1 2024 to **157 million RMB** in the current period[79](index=79&type=chunk)[84](index=84&type=chunk) - The decrease in cost of sales was mainly due to a reduction in direct labor costs, consistent with the Group's revenue decrease during the same period[79](index=79&type=chunk)[84](index=84&type=chunk) [Gross Profit and Gross Margin](index=17&type=section&id=GROSS%20PROFIT%20AND%20GROSS%20MARGIN) Gross profit decreased by 11% from approximately 18 million RMB in H1 2024 to 16 million RMB in H1 2025, with the gross margin declining from approximately 9.6% to 9.3% - Gross profit decreased by approximately **2 million RMB** or **11%** from approximately **18 million RMB** in H1 2024 to **16 million RMB** in H1 2025[85](index=85&type=chunk)[91](index=91&type=chunk) - The Group's gross margin decreased from approximately **9.6%** in H1 2024 to **9.3%** in the current period[85](index=85&type=chunk)[91](index=91&type=chunk) [Other Income and Net Other Gains/(Losses)](index=17&type=section&id=OTHER%20INCOME%20AND%20NET%20OTHER%20GAINS%2F%28LOSSES%29) For the period, the Group recorded net other income and gains of approximately 9.4 million RMB, a significant improvement from a net loss of 1.4 million RMB in H1 2024, mainly driven by increased exchange gains and fair value gains on financial assets - For the period, the Group recorded net other income and gains of approximately **9.4 million RMB**, compared to net other income and losses of approximately **1.4 million RMB** in H1 2024[86](index=86&type=chunk)[92](index=92&type=chunk) - This was mainly due to an increase in exchange gains and gains on financial assets at fair value through profit or loss[86](index=86&type=chunk)[92](index=92&type=chunk) [Selling and Distribution Expenses](index=17&type=section&id=SELLING%20AND%20DISTRIBUTION%20EXPENSES) Selling and distribution expenses remained stable at approximately 8 million RMB in both H1 2024 and the current period - Selling and distribution expenses remained stable at approximately **8 million RMB** in both H1 2024 and the current period[87](index=87&type=chunk)[93](index=93&type=chunk) [Administrative Expenses](index=17&type=section&id=ADMINISTRATIVE%20EXPENSES) Administrative expenses remained stable at approximately 19 million RMB in H1 2024 and 18 million RMB in the current period - Administrative expenses remained stable at approximately **19 million RMB** in H1 2024 and **18 million RMB** in the current period[88](index=88&type=chunk)[94](index=94&type=chunk) [Liquidity and Financial Resources](index=17&type=section&id=LIQUIDITY%20AND%20FINANCIAL%20RESOURCES) As of June 30, 2025, the Group's bank and cash balances significantly increased to approximately 61.7 million RMB, short-term bank borrowings rose to 96 million RMB, the current ratio slightly decreased to 2.2 times, and the gearing ratio increased to 53% - As of June 30, 2025, the Group's bank and cash balances (including time deposits of approximately **23 million RMB**) amounted to approximately **61.7 million RMB** (December 31, 2024: approximately **27 million RMB**)[89](index=89&type=chunk)[95](index=95&type=chunk) - The Group's short-term bank borrowings amounted to **96 million RMB** (December 31, 2024: approximately **81 million RMB**), with annual interest rates ranging from **3.4% to 4.6%**[89](index=89&type=chunk)[95](index=95&type=chunk) - The current ratio was approximately **2.2 times** (December 31, 2024: **2.3 times**), and the gearing ratio was approximately **53%** (December 31, 2024: **45%**)[90](index=90&type=chunk)[95](index=95&type=chunk) [Principal Risks and Uncertainties](index=18&type=section&id=PRINCIPAL%20RISKS%20AND%20UNCERTAINTIES) The Group faces various risks, including loss of major customers, political and economic instability, foreign currency exchange rate fluctuations, raw material price volatility or supply instability, and labor shortages or rising labor costs, which could materially adversely affect its business, financial condition, and operating results - The loss of major customers could have a **material adverse effect** on the Group's business, financial condition, and operating results[96](index=96&type=chunk)[98](index=98&type=chunk) - The Group faces risks related to political and economic instability and foreign currency exchange rate fluctuations associated with sales to customers in Japan, China, and other overseas markets[96](index=96&type=chunk)[98](index=98&type=chunk) - Fluctuations in raw material prices or unstable supply, as well as labor shortages or continuously rising labor costs, could negatively impact business operations and profitability[97](index=97&type=chunk)[98](index=98&type=chunk) [Capital Commitments and Contingent Liabilities](index=19&type=section&id=CAPITAL%20COMMITMENTS%20AND%20CONTINGENT%20LIABILITIES) As of June 30, 2025, the Group had no significant capital commitments or contingent liabilities, consistent with the situation as of December 31, 2024 - As of June 30, 2025, the Group had **no significant capital commitments** (December 31, 2024: nil)[99](index=99&type=chunk)[105](index=105&type=chunk) - As of June 30, 2025, the Group had **no significant contingent liabilities** (December 31, 2024: nil)[99](index=99&type=chunk)[105](index=105&type=chunk) [Pledge of Assets](index=19&type=section&id=PLEDGE%20OF%20ASSETS) As of June 30, 2025, the Group's leasehold land and buildings with a carrying amount of approximately 44 million RMB, and time deposits of approximately 23 million RMB, were pledged to banks as security for bank borrowings - As of June 30, 2025, the Group's leasehold land and buildings with a carrying amount of approximately **44 million RMB** were pledged to banks[100](index=100&type=chunk)[106](index=106&type=chunk) - Time deposits with a carrying amount of approximately **23 million RMB** were pledged to banks as security for bank borrowings[100](index=100&type=chunk)[106](index=106&type=chunk) [Employees and Remuneration Policy](index=19&type=section&id=EMPLOYEES%20AND%20REMUNERATION%20POLICY) As of June 30, 2025, the Group employed 593 staff, an increase from late 2024, with remuneration policies based on experience, qualifications, and abilities, and benefits including statutory MPF, social insurance, and housing provident fund contributions - As of June 30, 2025, the Group employed a total of **593 employees** (December 31, 2024: **523 employees**)[101](index=101&type=chunk)[107](index=107&type=chunk) - Employee remuneration policy is established by the Board based on individual employee experience, qualifications, and abilities[101](index=101&type=chunk)[107](index=107&type=chunk) - Other employee benefits include statutory Mandatory Provident Fund contributions, social insurance, and housing provident fund contributions[101](index=101&type=chunk)[107](index=107&type=chunk) [Future Prospects](index=19&type=section&id=FUTURE%20PROSPECTS) The Group aims to consolidate its leading position in the Japanese and Chinese markets, expand market share in existing markets like Hong Kong, Cambodia, and Korea, and address global economic downturns, trade tensions, and slow market recovery by expanding capacity, promoting business development, enhancing R&D, and exploring diversification opportunities - The Group's primary objective is to maintain and consolidate its leading position as an umbrella manufacturer in the Japanese market and an own-brand umbrella manufacturer in the Chinese market, and to expand its market share in existing markets such as Hong Kong, Cambodia, and Korea[102](index=102&type=chunk)[108](index=108&type=chunk) - Facing challenges such as global economic downturns, threats from the Sino-US trade war, and slow market recovery, the Group will expand production capacity, promote business development, and enhance R&D capabilities[103](index=103&type=chunk)[108](index=108&type=chunk) - To enrich its business and explore potential opportunities, the Group is actively exploring and developing business opportunities and projects[103](index=103&type=chunk)[108](index=108&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=19&type=section&id=PURCHASE%2C%20SALE%20OR%20REDEMPTION%20OF%20THE%20COMPANY'S%20LISTED%20SECURITIES) During the period, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities - During the period, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities[104](index=104&type=chunk)[109](index=109&type=chunk) [Directors' and Chief Executives' Interests in Securities](index=20&type=section&id=DIRECTORS'%20AND%20CHIEF%20EXECUTIVES'%20INTERESTS%20IN%20SECURITIES) As of June 30, 2025, directors and chief executives held long positions in the Company's shares, with Mr. Wong Man Chap holding 30.31% through a controlled corporation and other directors holding 0.46% as beneficial owners Long Positions in the Company (As of June 30) | Director's Name | Nature of Interest | Capacity | Number of Issued Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | :--- | | Mr. Wong Man Chap | Long Position | Interest in controlled corporation and beneficial owner | 125,030,900 | 30.31% | | Mr. Yang Guang | Long Position | Beneficial owner | 1,890,000 | 0.46% | | Mr. Lam Ching Sheung | Long Position | Beneficial owner | 1,890,000 | 0.46% | | Mr. Chung Kin Hung | Long Position | Beneficial owner | 1,890,000 | 0.46% | | Mr. Cao Siwei | Long Position | Beneficial owner | 1,890,000 | 0.46% | | Ms. Li Jieying | Long Position | Beneficial owner | 1,890,000 | 0.46% | - Mr. Wong Man Chap is deemed to have an interest in shares held by Jicheng Investment Limited, a controlled corporation[113](index=113&type=chunk)[115](index=115&type=chunk) [Interests and Short Positions of Substantial Shareholders](index=21&type=section&id=INTERESTS%20AND%20SHORT%20POSITIONS%20OF%20SUBSTANTIAL%20SHAREHOLDERS) As of the report date, Jicheng Investment Limited held 29.85% of shares, Mr. Wong Man Chap was deemed to hold 30.31% due to his full ownership of Jicheng Investment Limited, and his spouse, Ms. Chan Kai Yau, was also deemed to hold 29.85% Interests and Short Positions of Substantial Shareholders (As of the report date) | Shareholder Name/Designation | Nature of Interest | Capacity | Number of Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | :--- | | Jicheng Investment Limited | Long Position | Beneficial owner | 123,140,900 | 29.85% | | Mr. Wong Man Chap | Long Position | Interest in controlled corporation and beneficial owner | 125,030,900 | 30.31% | | Ms. Chan Kai Yau | Long Position | Spouse's interest | 123,140,900 | 29.85% | - Mr. Wong Man Chap wholly and beneficially owns Jicheng Investment Limited, and is therefore deemed to have an interest in the shares held by it[117](index=117&type=chunk)[121](index=121&type=chunk) - Ms. Chan Kai Yau is the spouse of Mr. Wong Man Chap, and is therefore deemed to have an interest in the shares in which Mr. Wong Man Chap has an interest[117](index=117&type=chunk)[121](index=121&type=chunk) [Share Option Scheme](index=21&type=section&id=SHARE%20OPTION%20SCHEME) The Company's share option scheme, adopted on January 23, 2015, expired on January 22, 2025, with no further options granted thereafter, aiming to reward and retain eligible individuals contributing to the Group's development, with 18,750,000 shares available for issuance as of the report date - The share option scheme expired on **January 22, 2025**, and no share options have been granted since its expiry[118](index=118&type=chunk)[120](index=120&type=chunk) - Eligible participants of the scheme include employees, directors, shareholders, consultants, advisors, suppliers, customers, and agents of the Company or any of its subsidiaries[122](index=122&type=chunk)[126](index=126&type=chunk) - As of the report date, the total number of securities available for issue under the share option scheme was **18,750,000 shares**, representing **4.54%** of the Company's total issued shares[131](index=131&type=chunk)[134](index=134&type=chunk) Share Option Movement (As of June 30) | Participant Category | Date of Grant | Exercise Period | Adjusted Exercise Price (HKD) | Outstanding as at 01.01.2025 | Granted during the period | Exercised during the period | Lapsed during the period | Outstanding as at 30.06.2025 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Employees | April 10, 2019 | April 10, 2019 to April 9, 2029 | 0.900 | 18,750,000 | – | – | – | 18,750,000 | [Corporate Governance](index=24&type=section&id=CORPORATE%20GOVERNANCE) The Company is committed to high corporate governance standards, adhering to the Corporate Governance Code in Appendix C1 of the Listing Rules, despite deviations like the combined Chairman and CEO role and some INEDs' absence from the AGM, which the Board believes supports strategy execution and decision-making - The Company has adopted and complied with the **Corporate Governance Code** as set out in **Appendix C1 of the Listing Rules**[138](index=138&type=chunk)[141](index=141&type=chunk) - The roles of Chairman and Chief Executive Officer are performed by Mr. Wong, which the Board believes facilitates the execution of business strategies and decision-making[138](index=138&type=chunk)[141](index=141&type=chunk) - Some Independent Non-executive Directors did not attend the Annual General Meeting held on **June 2, 2025**, due to other commitments, constituting a deviation from Code Provision F.1.3[139](index=139&type=chunk)[141](index=141&type=chunk) [Model Code for Securities Transactions by the Directors](index=25&type=section&id=MODEL%20CODE%20FOR%20SECURITIES%20TRANSACTIONS%20BY%20THE%20DIRECTORS) The directors have adopted and confirmed full compliance with the Model Code for Securities Transactions by Directors of Listed Issuers, as set out in Appendix C3 of the Listing Rules, since the listing date - The Directors have adopted the **Model Code for Securities Transactions by Directors of Listed Issuers** as set out in **Appendix C3 of the Listing Rules**[143](index=143&type=chunk)[148](index=148&type=chunk) - All Directors have confirmed their full compliance with the required standards of dealing as set out in the Model Code since the listing date[143](index=143&type=chunk)[148](index=148&type=chunk) [Audit Committee](index=25&type=section&id=AUDIT%20COMMITTEE) Established on January 23, 2015, the Audit Committee, comprising three independent non-executive directors and chaired by Mr. Cao Siwei, has reviewed the Group's accounting principles, practices, and financial reporting matters, including the unaudited condensed interim financial statements for the period - The Audit Committee was established on **January 23, 2015**, comprising three independent non-executive directors, with Mr. Cao Siwei as the chairman[144](index=144&type=chunk)[149](index=149&type=chunk) - The Committee has reviewed the accounting principles and practices adopted by the Group and financial reporting matters with management, including the unaudited condensed interim financial statements for the period[144](index=144&type=chunk)[149](index=149&type=chunk) [Remuneration Committee](index=25&type=section&id=REMUNERATION%20COMMITTEE) Established on January 23, 2015, the Remuneration Committee comprises three independent non-executive directors and is chaired by Ms. Li Jieying - The Remuneration Committee was established on **January 23, 2015**, comprising three independent non-executive directors, with Ms. Li Jieying as the chairman[145](index=145&type=chunk)[150](index=150&type=chunk) [Nomination Committee](index=25&type=section&id=NOMINATION%20COMMITTEE) Established on January 23, 2015, the Nomination Committee comprises three independent non-executive directors and is chaired by Mr. Yang Xuetai - The Nomination Committee was established on **January 23, 2015**, comprising three independent non-executive directors, with Mr. Yang Xuetai as the chairman[146](index=146&type=chunk)[151](index=151&type=chunk) [Appreciation](index=25&type=section&id=APPRECIATION) Mr. Wong Man Chap, Chairman of the Board, on behalf of the Board, extends gratitude to all staff for their diligent work, dedication, loyalty, and integrity, and thanks shareholders, customers, bankers, and other business partners for their trust and support - Mr. Wong Man Chap, Chairman of the Board, on behalf of the Board, extends gratitude to all staff for their diligent work, dedication, loyalty, and integrity[147](index=147&type=chunk)[152](index=152&type=chunk) - Appreciation is also extended to shareholders, customers, bankers, and other business partners for their trust and support[147](index=147&type=chunk)[152](index=152&type=chunk)

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年8月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 中國集成控股有限公司 呈交日期: 2025年9月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01027 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 1,562,500,000 | HKD | | 0.032 HKD | | 50,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | 0 | | 本月底結存 | | | 1,562,500,000 | HKD | | 0.032 HKD | | 50,000,000 | 本月底法定/註冊股本總額： HKD 50,0 ...

公告称，收益减少主要由于雨伞零部件的需求较去年同期减少。 中国集成控股(01027)公布2025年中期业绩，收益约1.734亿元，同比减少7.22%;净亏损348.8万元，同比 收窄70.9%;每股亏损0.85分。 ...

Core Viewpoint - China Integrated Holdings (01027) reported a decrease in revenue for the first half of 2025, primarily due to reduced demand for umbrella components compared to the same period last year [1] Financial Performance - Revenue for the first half of 2025 was approximately 173.4 million, representing a year-on-year decrease of 7.22% [1] - The net loss narrowed to 3.488 million, a year-on-year improvement of 70.9% [1] - Earnings per share reflected a loss of 0.85 cents [1]

[CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME](index=2&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20PROFIT%20OR%20LOSS%20AND%20OTHER%20COMPREHENSIVE%20INCOME) This statement provides a concise overview of the Group's financial performance, showing a narrowed loss despite a revenue decrease for the six months ended June 30, 2025 [Profit and Loss Overview](index=2&type=section&id=Profit%20and%20Loss%20Overview) For the six months ended June 30, 2025, the Group's revenue decreased by 7.5% year-on-year, turning from profit to loss, but significantly narrowing the loss compared to the same period last year, with basic and diluted loss per share at RMB 0.85 cents | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 173,416 | 186,910 | -7.5% | | Cost of Sales | (157,497) | (168,464) | -6.5% | | Gross Profit | 15,919 | 18,446 | -13.7% | | Other Income and Net Other Gains/(Losses) | 9,371 | (1,368) | N/A | | Selling and Distribution Expenses | (8,304) | (7,851) | +5.8% | | Administrative Expenses | (18,220) | (19,318) | -5.7% | | Finance Costs | (1,735) | (1,886) | -8.0% | | Loss Before Tax | (2,969) | (11,977) | -75.2% | | Income Tax Expense | (519) | (8) | N/A | | Loss for the Period | (3,488) | (11,985) | -70.9% | | Basic and Diluted Loss Per Share (RMB cents) | (0.85) | (2.91) | -70.8% | - Loss for the period significantly narrowed by 70.9%, primarily due to a substantial increase in other income and net gains, along with controlled cost of sales and administrative expenses[8](index=8&type=chunk) [CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION](index=3&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20FINANCIAL%20POSITION) This statement presents the Group's financial position as of June 30, 2025, highlighting changes in assets, liabilities, and equity [Financial Position Overview](index=3&type=section&id=Financial%20Position%20Overview) As of June 30, 2025, the Group's total assets slightly increased, while net current assets and total equity slightly decreased. Bank balances and cash significantly increased, while inventories and trade receivables decreased | Indicator | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | **Non-current Assets** | | | | | Property, Plant and Equipment | 44,329 | 46,003 | -3.6% | | Right-of-Use Assets | 11,782 | 12,050 | -2.2% | | **Current Assets** | | | | | Inventories | 111,830 | 135,648 | -17.5% | | Financial Assets at FVTPL | 12,268 | 6,427 | +90.9% | | Trade Receivables | 102,053 | 114,156 | -10.6% | | Prepayments and Other Receivables | 58,328 | 47,907 | +21.7% | | Loan Receivables | 10,101 | 10,398 | -2.9% | | Pledged Time Deposits | 23,030 | 22,843 | +0.8% | | Bank Balances and Cash | 38,644 | 4,145 | +832.3% | | **Current Liabilities** | | | | | Trade and Bills Payables | 58,414 | 51,398 | +13.6% | | Accruals, Other Payables and Contract Liabilities | 8,329 | 12,595 | -33.9% | | Bank Borrowings | 96,120 | 81,470 | +17.9% | | Tax Payables | 2,102 | 2,665 | -21.2% | | **Net Value** | | | | | Net Current Assets | 191,289 | 193,396 | -1.1% | | Net Assets | 247,400 | 251,449 | -1.6% | | Total Equity | 247,400 | 251,449 | -1.6% | - Bank balances and cash significantly increased by 832.3%, indicating improved cash flow, but short-term bank borrowings also increased by 17.9%[11](index=11&type=chunk) [CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY](index=4&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CHANGES%20IN%20EQUITY) This statement details the changes in the Group's total equity attributable to owners, primarily influenced by period loss and exchange reserve movements [Equity Changes Overview](index=4&type=section&id=Equity%20Changes%20Overview) For the six months ended June 30, 2025, total equity attributable to owners of the Company slightly decreased, primarily due to the loss for the period and negative movements in exchange reserves, partially offset by capital contributions from shareholders | Indicator | As of June 30, 2025 (RMB thousands) | As of Jan 1, 2024 (RMB thousands) | Change (2025 vs 2024) | | :--- | :--- | :--- | :--- | | Share Capital | 10,818 | 10,818 | 0 | | Share Premium | 177,394 | 177,394 | 0 | | Exchange Reserve | 5,950 | 5,772 | +178 | | Statutory Reserve | 22,884 | 22,884 | 0 | | Share Option Reserve | 5,947 | 5,960 | -13 | | Other Reserves | 1,241 | 1,008 | +233 | | Merger Reserve | 81,521 | 81,521 | 0 | | Retained Profits | (58,355) | (65,759) | +7,404 | | **Total Equity** | **247,400** | **239,598** | **+7,802** | - Loss for the period was RMB 3,488 thousands, leading to a decrease in retained profits. Exchange reserve decreased by RMB 582 thousands due to exchange differences on translation of financial statements[13](index=13&type=chunk) - Shareholders' capital contribution of RMB 21 thousands had a positive impact on total equity[13](index=13&type=chunk) [CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CASH%20FLOWS) This statement outlines the Group's cash flow activities, showing a positive shift in operating cash flow and a net increase in cash and cash equivalents [Cash Flow Overview](index=6&type=section&id=Cash%20Flow%20Overview) For the six months ended June 30, 2025, the Group's operating cash flow turned from negative to positive, and financing cash flow maintained a net inflow, leading to a net increase in cash and cash equivalents | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Change (2025 vs 2024) | | :--- | :--- | :--- | :--- | | Net Cash From/(Used In) Operating Activities | 19,496 | (28,531) | N/A (Turned from negative to positive) | | Net Cash From/(Used In) Investing Activities | (519) | 5,026 | N/A (Turned from positive to negative) | | Net Cash From Financing Activities | 15,555 | 21,306 | -27.0% | | Net Increase/(Decrease) in Cash and Cash Equivalents | 34,532 | (2,199) | N/A (Turned from negative to positive) | | Bank Balances and Cash as of June 30 | 38,644 | 11,020 | +250.7% | - Net cash from operating activities significantly improved, turning from a net outflow of RMB 28,531 thousands in H1 2024 to a net inflow of RMB 19,496 thousands in H1 2025[17](index=17&type=chunk) - Net cash from investing activities turned from a net inflow to a net outflow, primarily reflecting adjustments in investment activities[17](index=17&type=chunk) [NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS](index=7&type=section&id=NOTES%20TO%20THE%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) These notes provide detailed explanations and disclosures for the condensed consolidated financial statements, covering accounting policies, segment information, and financial instruments [1. GENERAL INFORMATION OF THE GROUP](index=7&type=section&id=1.%20GENERAL%20INFORMATION%20OF%20THE%20GROUP) The Group primarily manufactures and sells umbrellas, is registered in the Cayman Islands, and its shares are listed on the Main Board of the Hong Kong Stock Exchange. Both the functional and presentation currencies are RMB - The Company was incorporated in the Cayman Islands on June 12, 2014, and listed on the Main Board of the Hong Kong Stock Exchange on February 13, 2015[18](index=18&type=chunk)[21](index=21&type=chunk)[23](index=23&type=chunk)[24](index=24&type=chunk) - Principal subsidiaries are engaged in the manufacturing and sale of umbrellas, while the Company is an investment holding company[18](index=18&type=chunk)[21](index=21&type=chunk) - The condensed consolidated financial statements are presented in RMB, which is also the functional currency of the Company and its PRC subsidiaries[18](index=18&type=chunk)[21](index=21&type=chunk) [2.1 BASIS OF PREPARATION](index=7&type=section&id=2.1%20BASIS%20OF%20PREPARATION) The condensed consolidated financial statements are prepared in accordance with HKAS 34 'Interim Financial Reporting' and Appendix D2 of the Listing Rules, using a historical cost basis consistent with the 2024 annual consolidated financial statements - The financial statements are prepared in accordance with HKAS 34 'Interim Financial Reporting' and Appendix D2 of the Listing Rules[19](index=19&type=chunk)[22](index=22&type=chunk) - The historical cost basis is adopted, and the accounting policies and methods of computation are consistent with those used in the annual consolidated financial statements for the year ended December 31, 2024[20](index=20&type=chunk)[22](index=22&type=chunk) [2.2 PRINCIPAL ACCOUNTING POLICIES](index=8&type=section&id=2.2%20PRINCIPAL%20ACCOUNTING%20POLICIES) New amendments to Hong Kong Financial Reporting Standards were first applied in the current period, but they had no significant impact on the Group's financial performance or position - The Group first applied HKAS 21 (Amendment) – Lack of Exchangeability[26](index=26&type=chunk)[27](index=27&type=chunk) - The application of the new amendments had no significant impact on the financial performance and position for the current and prior periods[26](index=26&type=chunk)[27](index=27&type=chunk) [3. REVENUE](index=8&type=section&id=3.%20REVENUE) Revenue for the period, primarily from the sale of goods, decreased by 7.5% year-on-year, reflecting changes in market demand | Revenue Source | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Sale of Goods | 173,416 | 186,910 | -7.5% | - The decrease in revenue was primarily due to reduced demand for umbrella components compared to the same period last year[81](index=81&type=chunk)[86](index=86&type=chunk) [4. SEGMENT INFORMATION](index=8&type=section&id=4.%20SEGMENT%20INFORMATION) The Group operates a single segment: the manufacturing and sale of umbrellas. Revenue is segmented by product category and geographical location, with significant growth in the Japanese market and declines in the Chinese and Cambodian markets - The Group operates a single segment: manufacturing and sale of umbrellas[30](index=30&type=chunk)[31](index=31&type=chunk) [PRODUCT INFORMATION](index=9&type=section&id=PRODUCT%20INFORMATION) The Group's main products are POE umbrellas, nylon umbrellas, and umbrella components. Sales of umbrella components significantly decreased this period, while sales of POE and nylon umbrellas increased | Product Category | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | POE Umbrellas | 37,026 | 28,662 | +29.2% | | Nylon Umbrellas | 87,568 | 82,340 | +6.3% | | Umbrella Components | 48,822 | 75,908 | -35.7% | | **Total Revenue** | **173,416** | **186,910** | **-7.2%** | - Sales of umbrella components significantly decreased by 35.7%, which was the main reason for the decline in total revenue[33](index=33&type=chunk) [GEOGRAPHICAL INFORMATION](index=9&type=section&id=GEOGRAPHICAL%20INFORMATION) The Group's customers are primarily located in Japan, Cambodia, and China. Revenue from the Japanese market significantly increased, while revenue from the Chinese and Cambodian markets decreased | Geographical Location | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Japan | 76,587 | 59,827 | +28.0% | | China | 46,656 | 55,074 | -15.3% | | Cambodia | 41,151 | 59,070 | -30.3% | | Others | 9,022 | 12,939 | -30.3% | | **Total Revenue** | **173,416** | **186,910** | **-7.2%** | - Revenue from the Japanese market increased by 28.0%, becoming the Group's largest source of income[36](index=36&type=chunk) - Revenue from both the Chinese and Cambodian markets experienced double-digit declines[36](index=36&type=chunk) [INFORMATION ABOUT MAJOR CUSTOMERS](index=10&type=section&id=INFORMATION%20ABOUT%20MAJOR%20CUSTOMERS) The Group has two major customers, each accounting for 10% or more of total revenue, with one showing growth and the other a slight decline | Customer | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Customer A | 29,691 | 28,099 | +5.7% | | Customer B | 34,574 | 36,310 | -4.8% | [5. INCOME TAX EXPENSE](index=10&type=section&id=5.%20INCOME%20TAX%20EXPENSE) Income tax expense significantly increased this period, primarily from China corporate income tax at a rate of 25%. Subsidiaries in the Cayman Islands, British Virgin Islands, and Hong Kong are not subject to income tax | Tax Category | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | PRC Corporate Income Tax | 519 | 8 | N/A (Significant increase) | - The corporate income tax rate for PRC companies is 25%[44](index=44&type=chunk) - Subsidiaries in the Cayman Islands, British Virgin Islands, and Hong Kong were not subject to income tax for the current and prior periods[44](index=44&type=chunk) [6. LOSS FOR THE PERIOD](index=11&type=section&id=6.%20LOSS%20FOR%20THE%20PERIOD) The loss for the period was derived after deducting various expenses, with staff costs, production material costs, and R&D expenses being major components. Exchange gains had a positive impact on narrowing the loss | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Staff Costs | 19,376 | 18,388 | +5.4% | | Cost of Materials Used in Production | 164,696 | 183,332 | -10.2% | | Depreciation of Property, Plant and Equipment | 2,410 | 2,142 | +12.5% | | Net Exchange Gains/(Losses) | (2,595) | 746 | N/A (Turned from loss to gain) | | Finance Costs – Bank Borrowings | 1,735 | 1,886 | -8.0% | | Research and Development Expenses | 6,637 | 6,409 | +3.6% | - Cost of materials used in production decreased by 10.2%, consistent with the trend of declining revenue[47](index=47&type=chunk) - Net exchange gains of RMB 2,595 thousands were recorded, compared to a net loss of RMB 746 thousands in the same period last year, significantly contributing to the narrowing of the loss for the period[47](index=47&type=chunk) [7. LOSS PER SHARE](index=11&type=section&id=7.%20LOSS%20PER%20SHARE) Basic and diluted loss per share for the period was RMB 0.85 cents, a significant narrowing from the prior year, with both being identical due to anti-dilutive share options | Indicator | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Loss for the Period Attributable to Owners of the Company (RMB thousands) | (3,488) | (11,985) | -70.9% | | Weighted Average Number of Ordinary Shares (thousands) | 412,550 | 412,550 | 0% | | Basic and Diluted Loss Per Share (RMB cents) | (0.85) | (2.91) | -70.8% | - Basic and diluted loss per share for both periods are identical due to the anti-dilutive effect of share options on the basic loss per share calculation[52](index=52&type=chunk)[55](index=55&type=chunk) [8. DIVIDEND](index=12&type=section&id=8.%20DIVIDEND) The Board did not recommend the payment of any interim dividend for the current period, consistent with the prior year - No dividends were paid, declared, or proposed for the six months ended June 30, 2025[53](index=53&type=chunk)[56](index=56&type=chunk) [9. PROPERTY, PLANT AND EQUIPMENT](index=12&type=section&id=9.%20PROPERTY%2C%20PLANT%20AND%20EQUIPMENT) No impairment losses were recognized for property, plant and equipment during the period, and additions significantly increased - Additions to property, plant and equipment amounted to approximately RMB 912,000 for the six months ended June 30, 2025, a significant increase from RMB 111,000 in the same period of 2024[54](index=54&type=chunk)[57](index=57&type=chunk) - No impairment losses were recognized for property, plant and equipment in either period[54](index=54&type=chunk)[57](index=57&type=chunk) [10. TRADE RECEIVABLES](index=13&type=section&id=10.%20TRADE%20RECEIVABLES) The Group's total trade receivables decreased, with a significant reduction in receivables aged 0-90 days, but an increase in those aged over 365 days | Aging | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | 0 to 90 days | 42,976 | 74,237 | -42.1% | | 91 to 180 days | 20,660 | 15,030 | +37.5% | | 181 to 365 days | 16,165 | 6,762 | +139.1% | | Over 365 days | 22,252 | 18,127 | +22.7% | | **Total** | **102,053** | **114,156** | **-10.6%** | - The Group generally grants credit terms of 30 to 150 days to its trade customers[58](index=58&type=chunk)[59](index=59&type=chunk) [11. LOAN RECEIVABLES](index=13&type=section&id=11.%20LOAN%20RECEIVABLES) Total loan receivables slightly decreased, primarily comprising unsecured loans to independent third parties, bearing interest at 8% per annum and repayable within one year | Item | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Fixed-rate Loan Receivables | 13,234 | 13,623 | -2.9% | | Less: Provision for Credit Losses | (3,133) | (3,225) | -2.8% | | **Net Amount** | **10,101** | **10,398** | **-2.9%** | - Loan receivables are unsecured, bear interest at 8% per annum, and are repayable within one year[62](index=62&type=chunk) [12. TRADE AND BILLS PAYABLES](index=14&type=section&id=12.%20TRADE%20AND%20BILLS%20PAYABLES) The Group's total trade and bills payables increased, with a significant rise in payables aged 0-90 days | Item | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Trade Payables | 24,537 | 20,140 | +21.8% | | Bills Payables | 33,877 | 31,258 | +8.4% | | **Total** | **58,414** | **51,398** | **+13.6%** | | Aging | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | 0 to 90 days | 41,269 | 33,097 | +24.7% | | 91 to 180 days | 16,327 | 15,375 | +6.2% | | 181 to 365 days | 818 | 2,926 | -72.0% | - Credit terms for purchases of goods range from 30 to 120 days[68](index=68&type=chunk) [13. BANK BORROWINGS](index=14&type=section&id=13.%20BANK%20BORROWINGS) The Group's total bank borrowings increased, all secured and repayable within one year, with interest rates ranging from 3.40% to 4.55%. The borrowings are collateralized by buildings, right-of-use assets, and personal guarantees from a director | Item | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Secured, repayable within one year | 96,120 | 81,470 | +17.9% | - Bank borrowings bear fixed interest rates ranging from 3.40% to 4.55% per annum[72](index=72&type=chunk)[74](index=74&type=chunk) - The borrowings are secured by the Group's buildings, right-of-use assets, and personal guarantees from Mr. Wong, a director, and his spouse[73](index=73&type=chunk)[74](index=74&type=chunk) [14. SHARE CAPITAL](index=15&type=section&id=14.%20SHARE%20CAPITAL) The Company's issued and fully paid share capital remained unchanged during the period, with ordinary shareholders enjoying dividend and voting rights | Item | As of June 30, 2025 (thousands of shares) | As of Dec 31, 2024 (thousands of shares) | Change (%) | | :--- | :--- | :--- | :--- | | Number of Authorized Shares | 1,562,500 | 1,562,500 | 0% | | Number of Issued and Fully Paid Shares | 412,550 | 412,550 | 0% | | Nominal Value of Ordinary Shares (RMB thousands) | 10,818 | 10,818 | 0% | - Holders of ordinary shares are entitled to dividends as declared from time to time and have one vote per share at general meetings of the Company[77](index=77&type=chunk) [MANAGEMENT DISCUSSION AND ANALYSIS](index=16&type=section&id=MANAGEMENT%20DISCUSSION%20AND%20ANALYSIS) This section provides a comprehensive review of the Group's operational and financial performance, liquidity, risks, and future outlook for the period [INTERIM DIVIDEND](index=16&type=section&id=INTERIM%20DIVIDEND) The Board did not recommend any interim dividend for the current period, consistent with the prior year - The Board did not recommend the payment of any interim dividend for the six months ended June 30, 2025 (2024: nil)[78](index=78&type=chunk)[83](index=83&type=chunk) [BUSINESS REVIEW](index=16&type=section&id=BUSINESS%20REVIEW) The Group primarily manufactures and sells umbrellas, is one of China's largest umbrella and parasol exporters, and holds a leading position in the Japanese plastic umbrella market. The Group is actively exploring and developing new business opportunities for diversification - The Group primarily manufactures and sells POE umbrellas, nylon umbrellas, and umbrella components[79](index=79&type=chunk)[84](index=84&type=chunk) - Based on export volume and sales volume, the Group is one of the largest umbrella and parasol exporters and manufacturers in China, and one of the largest suppliers of plastic umbrellas in Japan[79](index=79&type=chunk)[84](index=84&type=chunk) - The Group is actively exploring and developing business opportunities and projects to enrich its business and uncover potential opportunities[79](index=79&type=chunk)[84](index=84&type=chunk) [FINANCIAL REVIEW](index=16&type=section&id=FINANCIAL%20REVIEW) The Group's revenue decreased by 7.5% this period, but the loss significantly narrowed by 75.2%, primarily due to a substantial increase in other income and net gains | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 173 | 187 | -7.5% | | Loss Attributable to Owners of the Company | 3 | 12 | -75.0% | | Basic Loss Per Share (RMB cents) | 0.85 | 2.91 | -70.8% | [Revenue](index=16&type=section&id=REVENUE_FINANCIAL_REVIEW) Revenue decreased by 7.5% this period, mainly attributed to reduced demand for umbrella components - Revenue decreased by approximately 7.5% from approximately RMB 187 million in H1 2024 to approximately RMB 173 million in the current period[81](index=81&type=chunk)[86](index=86&type=chunk) - The decrease in revenue was primarily due to reduced demand for umbrella components compared to the same period last year[81](index=81&type=chunk)[86](index=86&type=chunk) [Cost of Sales](index=16&type=section&id=COST%20OF%20SALES_FINANCIAL_REVIEW) Cost of sales decreased by 6.5%, consistent with the revenue decline, primarily due to reduced direct labor costs - Cost of sales decreased by approximately 6.5% from approximately RMB 168 million in H1 2024 to approximately RMB 157 million in the current period[82](index=82&type=chunk)[87](index=87&type=chunk) - The decrease in cost of sales was primarily due to reduced direct labor costs, consistent with the Group's revenue decline in the same period[82](index=82&type=chunk)[87](index=87&type=chunk) [GROSS PROFIT AND GROSS MARGIN](index=17&type=section&id=GROSS%20PROFIT%20AND%20GROSS%20MARGIN) Gross profit decreased by 11%, and gross margin declined from 9.6% to 9.3%, reflecting the impact of reduced revenue and cost structure - Gross profit decreased by approximately RMB 2 million (11%) from approximately RMB 18 million in H1 2024 to approximately RMB 16 million in the current period[88](index=88&type=chunk)[94](index=94&type=chunk) - Gross margin decreased from approximately 9.6% in H1 2024 to 9.3% in the current period[88](index=88&type=chunk)[94](index=94&type=chunk) [OTHER INCOME AND NET OTHER GAINS/(LOSSES)](index=17&type=section&id=OTHER%20INCOME%20AND%20NET%20OTHER%20GAINS%2F%28LOSSES%29) The current period recorded other income and net gains of approximately RMB 9.4 million, a significant improvement from a net loss in the prior year, driven by increased exchange gains and fair value gains on financial assets - The current period recorded other income and net gains of approximately RMB 9.4 million, compared to a net loss of approximately RMB 1.4 million in H1 2024[89](index=89&type=chunk)[95](index=95&type=chunk) - This was primarily due to increased exchange gains and fair value gains on financial assets at FVTPL[89](index=89&type=chunk)[95](index=95&type=chunk) [SELLING AND DISTRIBUTION EXPENSES](index=17&type=section&id=SELLING%20AND%20DISTRIBUTION%20EXPENSES) Selling and distribution expenses remained stable at approximately RMB 8 million during the current period - Selling and distribution expenses remained stable at approximately RMB 8 million in both H1 2024 and the current period[90](index=90&type=chunk)[96](index=96&type=chunk) [ADMINISTRATIVE EXPENSES](index=17&type=section&id=ADMINISTRATIVE%20EXPENSES) Administrative expenses remained stable at approximately RMB 18 million during the current period - Administrative expenses remained stable at approximately RMB 19 million in H1 2024 and approximately RMB 18 million in the current period[91](index=91&type=chunk)[97](index=97&type=chunk) [LIQUIDITY AND FINANCIAL RESOURCES](index=17&type=section&id=LIQUIDITY%20AND%20FINANCIAL%20RESOURCES) The Group's liquidity improved with a significant increase in bank and cash balances, though short-term bank borrowings and the gearing ratio also rose | Indicator | As of June 30, 2025 | As of Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Bank and Cash Balances (RMB millions) | 61.7 | 27 | +128.5% | | Short-term Bank Borrowings (RMB millions) | 96 | 81 | +18.5% | | Current Ratio | 2.2 times | 2.3 times | Slight decrease | | Gearing Ratio | 53% | 45% | +8 percentage points | - Bank and cash balances (including time deposits) significantly increased to approximately RMB 61.7 million[92](index=92&type=chunk)[98](index=98&type=chunk) - The gearing ratio increased to 53%, primarily due to an increase in the percentage of interest-bearing liabilities and bills payables to total equity[93](index=93&type=chunk)[98](index=98&type=chunk) [PRINCIPAL RISKS AND UNCERTAINTIES](index=18&type=section&id=PRINCIPAL%20RISKS%20AND%20UNCERTAINTIES) The Group faces various business risks, including loss of major customers, political and economic instability, foreign currency fluctuations, raw material price volatility or unstable supply, and labor shortages or rising costs - Loss of major customers could have a significant adverse impact on the Group's business, financial condition, and operating results[99](index=99&type=chunk)[101](index=101&type=chunk) - The Group faces risks related to political and economic instability and foreign currency exchange rate fluctuations associated with selling products to customers in Japan, China, and other overseas markets[99](index=99&type=chunk)[101](index=101&type=chunk) - Fluctuations in raw material prices or unstable supply could negatively impact business operations and profitability[100](index=100&type=chunk)[101](index=101&type=chunk) - The Group may face risks of labor shortages or continuously rising labor costs[100](index=100&type=chunk)[101](index=101&type=chunk) [CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES](index=19&type=section&id=CAPITAL%20COMMITMENTS%20AND%20CONTINGENT%20LIABILITIES) As of June 30, 2025, the Group had no significant capital commitments or contingent liabilities - As of June 30, 2025, the Group had no significant capital commitments (December 31, 2024: nil)[102](index=102&type=chunk)[108](index=108&type=chunk) - As of June 30, 2025, the Group had no significant contingent liabilities (December 31, 2024: nil)[102](index=102&type=chunk)[108](index=108&type=chunk) [PLEDGE OF ASSETS](index=19&type=section&id=PLEDGE%20OF%20ASSETS) The Group's leasehold land and buildings, along with time deposits, are pledged to banks as security for bank borrowings - As of June 30, 2025, leasehold land and buildings with a carrying amount of approximately RMB 44 million were pledged to banks[103](index=103&type=chunk)[109](index=109&type=chunk) - Time deposits with a carrying amount of approximately RMB 23 million were pledged to banks as security for bank borrowings[103](index=103&type=chunk)[109](index=109&type=chunk) [EMPLOYEES AND REMUNERATION POLICY](index=19&type=section&id=EMPLOYEES%20AND%20REMUNERATION%20POLICY) The Group's employee count increased, with remuneration policies based on experience, qualifications, and ability, supplemented by statutory benefits - As of June 30, 2025, the Group employed a total of 593 employees, an increase from 523 as of December 31, 2024[104](index=104&type=chunk)[110](index=110&type=chunk) - Remuneration policies are set by the Board based on individual employees' experience, qualifications, and abilities[104](index=104&type=chunk)[110](index=110&type=chunk) - Other employee benefits include statutory mandatory provident fund contributions, social insurance, and housing provident fund contributions[104](index=104&type=chunk)[110](index=110&type=chunk) [FUTURE PROSPECTS](index=19&type=section&id=FUTURE%20PROSPECTS) Facing global economic downturns and trade war threats, the Group aims to consolidate its market position, expand production capacity, enhance R&D capabilities, and actively explore new business opportunities to address challenges and create shareholder value - The Group aims to maintain and consolidate its leading position in the Japanese market and as an own-brand umbrella manufacturer in China, while expanding its market share in existing markets such as Hong Kong, Cambodia, and South Korea[105](index=105&type=chunk)[111](index=111&type=chunk) - Given the uncertainties of the Sino-US trade war and the slow pace of market recovery, the Group will further consolidate its market position, expand production capacity, promote business development, and enhance R&D capabilities[106](index=106&type=chunk)[111](index=111&type=chunk) - The Group will actively explore and develop business opportunities and projects to achieve business diversification[106](index=106&type=chunk)[111](index=111&type=chunk) [PURCHASE, SALE OR REDEMPTION OF THE COMPANY'S LISTED SECURITIES](index=19&type=section&id=PURCHASE%2C%20SALE%20OR%20REDEMPTION%20OF%20THE%20COMPANY%27S%20LISTED%20SECURITIES) During the current period, neither the Company nor its subsidiaries purchased, redeemed, or sold any of the Company's listed securities - During the current period, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities[107](index=107&type=chunk)[112](index=112&type=chunk) [CORPORATE GOVERNANCE AND OTHER INFORMATION](index=20&type=section&id=CORPORATE%20GOVERNANCE%20AND%20OTHER%20INFORMATION) This section details the Group's corporate governance practices, including directors' interests, substantial shareholders, share option scheme, and committee structures [DIRECTORS' AND CHIEF EXECUTIVES' INTERESTS IN SECURITIES](index=20&type=section&id=DIRECTORS%27%20AND%20CHIEF%20EXECUTIVES%27%20INTERESTS%20IN%20SECURITIES) As of June 30, 2025, directors and chief executives held long positions in the Company's shares, with Chairman Mr. Huang Wenji holding the largest interest | Director's Name | Nature of Interest | Capacity | Number of Issued Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | :--- | | Mr. Huang Wenji | Long Position | Interest in controlled corporation and beneficial owner | 125,030,900 | 30.31% | | Mr. Yang Guang | Long Position | Beneficial Owner | 1,890,000 | 0.46% | | Mr. Lin Zhenshuang | Long Position | Beneficial Owner | 1,890,000 | 0.46% | | Mr. Zhong Jianxiong | Long Position | Beneficial Owner | 1,890,000 | 0.46% | | Mr. Cao Siwei | Long Position | Beneficial Owner | 1,890,000 | 0.46% | | Ms. Li Jieying | Long Position | Beneficial Owner | 1,890,000 | 0.46% | - Mr. Huang Wenji is deemed to be interested in the shares of the Company held through Jicheng Investment Limited[116](index=116&type=chunk)[118](index=118&type=chunk) [INTERESTS AND SHORT POSITIONS OF SUBSTANTIAL SHAREHOLDERS](index=21&type=section&id=INTERESTS%20AND%20SHORT%20POSITIONS%20OF%20SUBSTANTIAL%20SHAREHOLDERS) As of the report date, substantial shareholders, including Jicheng Investment Limited, Mr. Huang Wenji, and his spouse Ms. Chen Jieyou, all held long positions in the Company's shares | Name of Shareholder | Nature of Interest | Capacity | Number of Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | :--- | | Jicheng Investment Limited | Long Position | Beneficial Owner | 123,140,900 | 29.85% | | Mr. Huang Wenji | Long Position | Interest in controlled corporation and beneficial owner | 125,030,900 | 30.31% | | Ms. Chen Jieyou | Long Position | Spouse's Interest | 123,140,900 | 29.85% | - Mr. Huang Wenji is the sole beneficial owner of Jicheng Investment Limited, and his spouse, Ms. Chen Jieyou, is deemed to be interested in the shares in which Mr. Huang Wenji is interested[124](index=124&type=chunk) [SHARE OPTION SCHEME](index=21&type=section&id=SHARE%20OPTION%20SCHEME) The Company's share option scheme expired on January 22, 2025, with no new options granted during the period. However, 18,750,000 shares remain exercisable under existing options, representing 4.54% of the total issued shares - The share option scheme expired on January 22, 2025, and no share options have been granted since its expiry[121](index=121&type=chunk)[123](index=123&type=chunk) - As of the date of this report, the total number of securities available for issue under the share option scheme is 18,750,000 shares, representing 4.54% of the Company's total issued shares[134](index=134&type=chunk)[137](index=137&type=chunk) | Class of Participants | Date of Grant | Exercise Period | Adjusted Exercise Price (HKD) | Outstanding as of Jan 1, 2025 | Granted during the period | Exercised during the period | Lapsed during the period | Outstanding as of June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Employees | April 10, 2019 | April 10, 2019 to April 9, 2029 | 0.900 | 18,750,000 | – | – | – | 18,750,000 | [CORPORATE GOVERNANCE](index=24&type=section&id=CORPORATE%20GOVERNANCE) The Company is committed to maintaining high corporate governance standards, with a board comprising four executive directors and three independent non-executive directors. Deviations exist regarding the non-separation of Chairman and CEO roles and the absence of independent non-executive directors at the general meeting - The Board of Directors comprises four executive directors and three independent non-executive directors[141](index=141&type=chunk)[144](index=144&type=chunk) - There is a deviation from Code Provision C.2.1 of the Corporate Governance Code, where the roles of Chairman and Chief Executive Officer are performed by the same person (Mr. Huang)[141](index=141&type=chunk)[144](index=144&type=chunk) - Independent Non-executive Directors Mr. Cao Siwei, Mr. Yang Xuetai, and Ms. Li Jieying did not attend the Annual General Meeting on June 2, 2025, due to other commitments, deviating from Code Provision F.1.3[142](index=142&type=chunk)[144](index=144&type=chunk) [MODEL CODE FOR SECURITIES TRANSACTIONS BY THE DIRECTORS](index=25&type=section&id=MODEL%20CODE%20FOR%20SECURITIES%20TRANSACTIONS%20BY%20THE%20DIRECTORS) Directors have adopted and confirmed full compliance with the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules - The Directors have adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules[146](index=146&type=chunk)[151](index=151&type=chunk) - All Directors have confirmed full compliance with the required standards of dealings set out in the Model Code since the listing date[146](index=146&type=chunk)[151](index=151&type=chunk) [AUDIT COMMITTEE](index=25&type=section&id=AUDIT%20COMMITTEE) The Audit Committee, composed of three independent non-executive directors, is responsible for reviewing accounting principles, financial reporting matters, and the unaudited interim financial statements for the period - The Audit Committee was established on January 23, 2015, and comprises three independent non-executive directors: Mr. Cao Siwei (Chairman), Ms. Li Jieying, and Mr. Yang Xuetai[147](index=147&type=chunk)[152](index=152&type=chunk) - The Committee has reviewed the accounting principles and practices adopted by the Group and financial reporting matters, including the unaudited consolidated interim financial statements for the current period[147](index=147&type=chunk)[152](index=152&type=chunk) [REMUNERATION COMMITTEE](index=25&type=section&id=REMUNERATION%20COMMITTEE) The Remuneration Committee, comprising three independent non-executive directors, is responsible for remuneration-related matters - The Remuneration Committee was established on January 23, 2015, and comprises three independent non-executive directors: Mr. Cao Siwei, Ms. Li Jieying (Chairman), and Mr. Yang Xuetai[148](index=148&type=chunk)[153](index=153&type=chunk) [NOMINATION COMMITTEE](index=25&type=section&id=NOMINATION%20COMMITTEE) The Nomination Committee, consisting of three independent non-executive directors, is responsible for nomination-related matters - The Nomination Committee was established on January 23, 2015, and comprises three independent non-executive directors: Mr. Cao Siwei, Ms. Li Jieying, and Mr. Yang Xuetai (Chairman)[149](index=149&type=chunk)[154](index=154&type=chunk) [APPRECIATION](index=25&type=section&id=APPRECIATION) The Chairman of the Board, on behalf of the Board, expresses gratitude to all colleagues, shareholders, customers, banks, and business partners for their support - The Chairman of the Board, Mr. Huang Wenji, on behalf of the Board, expresses gratitude to all colleagues for their diligence, dedication, loyalty, and integrity[150](index=150&type=chunk)[155](index=155&type=chunk) - The Board also thanks all shareholders, customers, banks, and other business partners for their trust and support[150](index=150&type=chunk)[155](index=155&type=chunk)

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 中國集成控股有限公司 呈交日期: 2025年8月4日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01027 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 1,562,500,000 | HKD | | 0.032 HKD | | 50,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | 0 | | 本月底結存 | | | 1,562,500,000 | HKD | | 0.032 HKD | | 50,000,000 | 本月底法定/註冊股本總額： HKD 50,0 ...

Financial Performance - The Group's revenue for the year ended 31 December 2024 increased to approximately RMB353 million, representing a growth of approximately 20.1% compared to 2023[13]. - The Group recorded a profit of approximately RMB11 million for the year ended 31 December 2024, a significant recovery from a loss of approximately RMB93 million in 2023[13]. - Revenue increased from approximately RMB 294 million for the year ended 31 December 2023 to approximately RMB 353 million for the year ended 31 December 2024, representing an increase of approximately 20.1%[34]. - Cost of sales increased from approximately RMB 273 million for the year ended 31 December 2023 to approximately RMB 323 million for the year ended 31 December 2024, representing an increase of approximately 18.3%[35]. - Gross profit increased by approximately RMB 10 million, or 47.6%, from approximately RMB 21 million for the year ended 31 December 2023 to approximately RMB 31 million for the year ended 31 December 2024[36]. - The gross profit margin increased from approximately 7.1% for the year ended 31 December 2023 to approximately 8.5% for the year ended 31 December 2024[36]. Revenue Breakdown - Revenue from POE umbrella products decreased by approximately RMB16 million, or 27.1%, from approximately RMB59 million in 2023 to approximately RMB43 million in 2024[14]. - Revenue from nylon umbrella products increased by approximately RMB31 million, or 27.2%, from approximately RMB114 million in 2023 to approximately RMB145 million in 2024[14]. - Revenue from umbrella parts increased by approximately RMB44 million, or 36.4%, from approximately RMB121 million in 2023 to approximately RMB165 million in 2024[15]. - Approximately 70.6% of the Group's total revenue for 2024 was generated from overseas customers, with key markets including Japan, Hong Kong, and the Republic of Korea[25]. - The Group's domestic market accounted for approximately 29.4% of total revenue in 2024, with sales primarily through existing product selections designed by the research and development team[26]. Business Strategy - The Group aims to shift its business focus from upstream manufacturing to downstream distribution and brand building to enhance margins and shareholder returns[21]. - The Group is exploring and developing new business opportunities and projects to diversify its operations[21]. - The Group is shifting its business focus from upstream manufacturing to downstream distribution network and brand building to promote higher-margin branded umbrellas[29]. Financial Position - The Group's bank balances and cash amounted to approximately RMB 27 million as at 31 December 2024, compared to approximately RMB 36 million as at 31 December 2023[47]. - The current ratio increased from 2.2 times as at 31 December 2023 to 2.3 times as at 31 December 2024[48]. - As of December 31, 2024, the Group's cash and bank balances were approximately RMB 27 million, a decrease from approximately RMB 36 million in 2023, while short-term bank borrowings increased to RMB 81 million from RMB 73 million in 2023[52]. - The current ratio improved from 2.2 times in 2023 to 2.3 times in 2024, indicating better short-term financial health[52]. - Inventory as of December 31, 2024, was approximately RMB 136 million, up from RMB 115 million in 2023, with inventory turnover days decreasing from approximately 165 days in 2023 to approximately 142 days in 2024[55][59]. - Trade receivables increased to approximately RMB 114 million in 2024 from RMB 93 million in 2023, with average trade receivables turnover days decreasing from approximately 150 days in 2023 to approximately 107 days in 2024[56][60]. - Trade and bills payables rose to approximately RMB 51 million in 2024 from RMB 45 million in 2023, with average turnover days slightly decreasing from approximately 70 days in 2023 to approximately 55 days in 2024[57][61]. Corporate Governance - The Board comprises four executive Directors and three independent non-executive Directors, committed to high standards of corporate governance[80][87]. - The independent non-executive Directors did not attend the annual general meeting held on May 31, 2024, due to other business engagements[81][84]. - The Board has established three committees to oversee different areas of the Company's affairs, including Audit, Remuneration, and Nomination Committees[86][89]. - The Audit Committee held four meetings during the year ended December 31, 2024, to review the Group's annual and interim results and assess the appointment of Infinity CPA Limited as the new auditor[113]. - Infinity CPA Limited was appointed as the new auditor of the Group on October 29, 2024, following the resignation of Elite Partners CPA Limited[112]. - The Company has received confirmations from all independent non-executive Directors regarding their independence, in compliance with Listing Rules[105]. - The Board is supported by three committees: Audit Committee, Nomination Committee, and Remuneration Committee, each with defined terms of reference approved by the Board[106]. - All Directors are committed to continuous professional development to ensure their contributions to the Board remain informed and relevant[102]. - The Company has arranged appropriate insurance coverage for potential legal actions against its Directors and officers[100]. - The Audit Committee's review included significant internal controls, financial matters, and compliance with Listing Rules and statutory requirements[113]. Risk Management - The Group's business is subject to risks including loss of key customers, fluctuations in raw material prices, and exchange rate risks, which could adversely affect financial performance[62][64][66]. - The Group has established risk management procedures to address significant risks associated with its business[150]. - The Board is responsible for evaluating and determining the nature and extent of risks it is willing to take in achieving the Group's strategic objectives[147]. - The management identifies risks associated with the Group's business by considering internal and external factors, prioritizing them based on impact and occurrence opportunity[155]. - The Audit Committee reviews significant risk management and internal controls on an ongoing basis, considering the adequacy of resources and qualifications of staff[148]. - The Group has engaged an external advisory firm to conduct the internal audit function, identifying no significant deficiencies in the internal control system[157]. - The Board assessed that the risk management and internal control system, covering all material controls including financial, operational, and compliance controls, were reasonably effective and adequate for the year ended December 31, 2024[158]. Employee and Management - The Group employed a total of 523 employees as of December 31, 2024, an increase from 449 employees in 2023, reflecting growth in operational capacity[69]. - The company’s executive directors have extensive experience in management and finance, with backgrounds in various industries[189][190][191][192]. - The senior management includes a manager for the research and development department who has been with the company since 2000, focusing on product design and R&D operations[198]. - The company has been expanding its management team with experienced professionals in project management and business planning, particularly in the consumer electronics sector[194]. - The independent non-executive directors bring diverse expertise, including finance, administration, and industrial design, enhancing the company's governance[197]. - The management team is well-educated, with qualifications from reputable institutions, contributing to the company's strategic direction[196]. Shareholder Engagement - The Company encourages shareholder participation in general meetings, providing opportunities for direct communication with the Board[175]. - Shareholders have the right to participate in general meetings and vote on significant matters, with notices sent at least 20 business days prior[182]. - The company encourages shareholders to attend meetings and make proposals directly to the Board or via written notice[176]. - Poll voting is adopted at shareholders' meetings to ensure each share has one vote, with results posted on the company's website[184]. - Shareholders holding at least 10% of the paid-up capital can requisition an extraordinary general meeting[180]. - The company has a dedicated email for shareholder inquiries, promoting direct communication with the Board[178]. - All reasonable expenses incurred by requisitionists for convening meetings due to the Board's failure will be reimbursed by the company[180].

Financial Performance - Revenue increased by approximately 20.1% to approximately RMB 353 million for the year ended December 31, 2024, compared to RMB 294 million for the year ended December 31, 2023[4] - Gross profit rose by approximately 47.6% to approximately RMB 31 million, up from RMB 21 million in the previous year[4] - The company reported a profit of approximately RMB 11 million for the year, a significant turnaround from a loss of approximately RMB 93 million in the prior year[4] - Basic earnings per share were approximately RMB 2.64, compared to a loss per share of approximately RMB 22.48 in the previous year[4] - The group reported a profit of RMB 10,879,000 for the year 2024, compared to a loss of RMB 92,751,000 in 2023, indicating a significant turnaround in performance[32] - The company recorded a net profit of approximately RMB 11 million for the year ended December 31, 2024, compared to a loss of approximately RMB 93 million for the year ended December 31, 2023, primarily due to improved market conditions and increased demand[48] Revenue Sources - Revenue from umbrella and umbrella components for 2024 reached RMB 353,264,000, a 19.9% increase from RMB 294,467,000 in 2023[16] - The company reported a significant increase in sales of nylon umbrellas, reaching RMB 144,819,000 in 2024, up 26.6% from RMB 114,400,000 in 2023[21] - Revenue from the Cambodian market increased to RMB 124,243,000 in 2024, a 28.3% rise from RMB 96,860,000 in 2023[22] - Revenue increased from approximately RMB 294 million for the year ended December 31, 2023, to approximately RMB 353 million for the year ended December 31, 2024, representing a growth of about 20.1% driven by increased demand for nylon umbrellas and umbrella components[41] Costs and Expenses - Cost of sales rose from approximately RMB 273 million for the year ended December 31, 2023, to approximately RMB 323 million for the year ended December 31, 2024, an increase of about 18.3% due to higher direct material and labor costs[42] - The cost of materials used in production rose to RMB 346,847,000 in 2024, up from RMB 262,530,000 in 2023, reflecting a 32% increase[30] - Total employee costs for the year 2024 amounted to RMB 37,604,000, slightly increasing from RMB 36,780,000 in 2023[30] - Research and development expenses accounted for RMB 13,376,000 in 2024, compared to RMB 12,617,000 in 2023, showing a growth of 6%[30] Assets and Liabilities - Trade receivables increased to RMB 114.156 million from RMB 92.925 million year-on-year[6] - Inventory rose to RMB 135.648 million, compared to RMB 115.366 million in the previous year[6] - Total assets increased to RMB 341.524 million from RMB 315.575 million year-on-year[6] - Net asset value increased to RMB 251.449 million from RMB 239.598 million in the previous year[6] - Trade payables and notes payable as of December 31, 2024, were approximately RMB 51 million, up from approximately RMB 45 million as of December 31, 2023, with average turnover days slightly decreasing from about 70 days to approximately 55 days[52] Dividends and Shareholder Returns - The company did not recommend the payment of a final dividend for the year ended December 31, 2024, consistent with the previous year[4] - The company has not proposed a final dividend for the year ending December 31, 2024, consistent with 2023[70] Governance and Management - The board of directors consists of four executive directors and three independent non-executive directors, ensuring a diverse governance structure[75] - The board expresses gratitude to all employees for their diligence and loyalty, as well as to shareholders, customers, banks, and business partners for their trust and support[73] Market and Strategic Focus - The company aims to maintain and strengthen its leading position as a manufacturer of umbrellas in the Japanese market and a private label umbrella manufacturer in the Chinese market[61] - The company is shifting its business focus from upstream manufacturing to downstream distribution networks and brand building to promote higher-margin products[61] - The company is actively seeking and developing business opportunities and projects for diversification[40] - The company is exploring and developing business opportunities and projects for diversification[61] Financial Reporting and Standards - The company has not applied any new or revised Hong Kong Financial Reporting Standards that are expected to have a significant impact on its financial statements[10] - The company is currently analyzing the impact of the new Hong Kong Financial Reporting Standard 18 on its consolidated financial statements[11] - The new financial reporting standards will be effective for annual reporting periods beginning on or after January 1, 2027, with early adoption permitted[12] Risks and Challenges - The company faces risks related to labor shortages and rising labor costs[55] - The company is exposed to foreign exchange risks due to sales in multiple currencies and purchases of raw materials in RMB and USD[60] Other Financial Metrics - The liquidity ratio improved from 2.2 times as of December 31, 2023, to 2.3 times as of December 31, 2024, with a debt-to-equity ratio of approximately 45%[49] - The company has no significant capital commitments or contingent liabilities as of December 31, 2024, consistent with 2023[56] - The company did not make any significant investments, acquisitions, or disposals of subsidiaries or capital assets during the year[59] - The group exported approximately 70.6% of its total revenue from POE umbrellas, nylon umbrellas, and umbrella components to overseas markets in 2024[38] Trade Receivables and Payables - Trade receivables from customer contracts decreased to RMB 155,993,000 in 2024 from RMB 170,732,000 in 2023, with a provision for credit losses of RMB 41,837,000[33] - The group’s trade payables increased to RMB 20,140,000 in 2024 from RMB 10,774,000 in 2023, indicating a 86% rise[35] - The group’s trade receivables aging analysis showed that overdue receivables totaled approximately RMB 65,222,000 as of December 31, 2024, down from RMB 88,383,000 in 2023[34] - The average credit period for sales is between 90 to 180 days post-delivery[16] - The average credit period granted to trade customers remained between 90 to 180 days, consistent with the previous year[33] Fixed Assets - The company’s leasehold land and buildings had a book value of approximately RMB 47 million as of December 31, 2024, down from RMB 50 million in 2023[57] - The group had a total of RMB 22,843,000 in fixed deposits pledged to banks as collateral for trade payables[37] Other Income - Other income and gains for 2024 totaled RMB 3,131,000, down 32.5% from RMB 4,656,000 in 2023, primarily due to a decrease in government grants[19] - Interest expenses on bank loans rose to RMB 4,102,000 in 2024, compared to RMB 3,045,000 in 2023[25] Reporting and Announcements - The annual performance announcement and report will be published on the Hong Kong Stock Exchange website and the company's website, covering the fiscal year ending December 31, 2024[72]

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 186,910,000, representing a 18.5% increase from RMB 157,738,000 in the same period of 2023[2] - Gross profit for the period was RMB 18,446,000, compared to RMB 12,140,000 in 2023, indicating a 52% increase[2] - Loss before tax for the period was RMB 11,977,000, compared to a loss of RMB 7,584,000 in the previous year, reflecting a 58.5% increase in losses[2] - Loss for the period attributable to owners of the Company was RMB 11,985,000, up from RMB 7,314,000 in 2023, marking a 63.5% increase[2] - Basic and diluted loss per share was RMB 2.91 cents, compared to RMB 1.77 cents in the same period last year[2] - Total comprehensive expense for the period was RMB 11,531,000, compared to RMB 6,592,000 in 2023, representing a 75.5% increase[2] - The Group's revenue increased to approximately RMB 187 million, representing an increase of approximately 18.4% compared to the first half of 2023[45] - The loss attributable to owners of the Company was approximately RMB 12 million for the Period, compared to a loss of approximately RMB 7 million for the first half of 2023[45] - The cost of sales increased from approximately RMB 146 million to RMB 168 million, representing an increase of approximately 15.1%[46] - Gross profit increased by approximately RMB 6 million, or 50%, from approximately RMB 12 million to RMB 18 million[47] - The Group's gross profit margin increased from approximately 7.6% to 9.6%[47] Cash Flow and Assets - For the six months ended June 30, 2024, net cash used in operating activities was RMB (28,531) thousand, compared to RMB (8,897) thousand for the same period in 2023[11] - Net cash generated from investing activities increased to RMB 5,026 thousand in 2024 from RMB 164 thousand in 2023[11] - Net cash generated from financing activities rose significantly to RMB 21,306 thousand in 2024, up from RMB 4,871 thousand in 2023[11] - Cash and cash equivalents as of June 30, 2024, amounted to RMB 11,020 thousand, down from RMB 12,569 thousand as of June 30, 2023[11] - The total cash and cash equivalents at the beginning of the year (January 1, 2024) were RMB 13,094 thousand[11] - The net decrease in cash and cash equivalents for the six months ended June 30, 2024, was RMB 2,199 thousand, compared to a decrease of RMB 3,862 thousand in 2023[11] - The effect of foreign exchange rate changes on cash and cash equivalents was RMB 125 thousand in 2024, compared to RMB (140) thousand in 2023[11] - Non-current assets as of June 30, 2024, totaled RMB 65,445,000, slightly down from RMB 66,485,000 as of December 31, 2023[4] - Current assets decreased to RMB 317,004,000 from RMB 315,575,000 at the end of 2023, indicating a marginal increase[4] - Total equity as of June 30, 2024, was RMB 228,261,000, down from RMB 239,598,000 at the end of 2023[4] - The ageing analysis of trade receivables showed a total of RMB 102,272,000 as of June 30, 2024, an increase from RMB 92,925,000 as of December 31, 2023[35] - The ageing analysis of trade and bills payables indicated a total of RMB 42,315,000 as of June 30, 2024, a decrease from RMB 45,041,000 as of December 31, 2023[37] Operational Highlights - The company is engaged in investment holding, with principal subsidiaries focused on manufacturing and selling umbrellas[11] - The Group operates in a single segment, focusing on the manufacturing and sale of umbrellas, with no segment assets or liabilities reported separately[14] - The Group's major non-current assets are all located in the PRC, reflecting its operational focus in this region[19] - The Group aims to strengthen its position as a leading umbrella manufacturer in the Japan market and increase market share in Hong Kong, Cambodia, and South Korea[60] - The Group plans to expand production capacity and enhance research and development capabilities to meet increasing demand in the umbrella market[61] - The Group is exploring and developing new business opportunities to diversify its operations[61] Employee and Governance - For the six months ended June 30, 2024, the total staff costs amounted to RMB 18,388,000, a decrease of 13% from RMB 21,129,000 in the same period of 2023[23] - The Group employed a total of 542 employees as of June 30, 2024, an increase from 449 employees as of December 31, 2023[59] - The Group's emolument policy is based on employees' experience, qualifications, and competence, with additional benefits including contributions to provident funds and social insurance[59] - The company has adopted and complied with the Corporate Governance Code since the Listing Date, with the roles of chairman and CEO vested in the same person, which the Directors believe maximizes operational effectiveness[84] - The company has three independent non-executive Directors on its Board, which enhances the Board's independence[84] - The Nomination Committee was established to oversee the appointment of Directors and consists of three independent non-executive Directors[90] - The company has confirmed that all Directors have complied with the Model Code for Securities Transactions since the Listing Date[86] Shareholder Information - As of June 30, 2024, Mr. Huang Wenji holds a long position of 125,033,900 shares, representing approximately 30.31% of the company's shareholding[69] - Ms. Chen Jieyou, as the spouse of Mr. Huang Wenji, has a long position of 123,140,900 shares, accounting for about 29.85% of the company's shareholding[70] - Jicheng Investment Limited, wholly owned by Mr. Huang Wenji, holds a long position of 123,140,900 shares, which is 29.85% of the total[72] - Other directors, including Mr. Yang Guang, Mr. Lin Zhenshuang, Mr. Chung Kin Hung, Mr. Tso Sze Wai, and Ms. Lee Kit Ying, each hold a long position of 1,890,000 shares, representing approximately 0.46% each[69] - The interests of Mr. Huang Wenji in Jicheng Investment Limited are deemed under the Securities and Futures Ordinance (SFO)[73] - The report indicates that all disclosed interests comply with the requirements of the SFO[74] - The company maintains transparency regarding the interests of its directors and substantial shareholders as mandated by regulatory requirements[74] Share Option Scheme - The maximum number of shares that may be issued under the Share Option Scheme is capped at 10% of the shares in issue as of the date of shareholder approval[75] - The total number of securities available for issue under the Share Option Scheme is 41,255,000 shares, representing 10% of the total number of issued shares of the Company[79] - Options granted to any director, chief executive, or substantial shareholder, or their associates, require prior approval from independent non-executive Directors[77] - The exercise price of the share options must not be less than the highest of the closing price on the offer date, the average closing price for the preceding five business days, or the nominal value of a share[79] - The number of options available for grant under the scheme at the beginning and end of the interim period 2024 remained at 41,255,000 shares[80] - The number of shares that may be issued in respect of options granted during the interim period 2024 was approximately 4.5% of the weighted average number of shares in issue[81] - Share options granted in excess of 1% of the shares in issue require a circular and shareholder approval[76] - The exercise period for share options can last up to ten years from the date of grant, with no minimum holding period required[78] - Participants must pay HK$1.0 upon acceptance of the grant within 21 days after the offer date[78] - The Remuneration Committee believes that no performance target or clawback mechanism is necessary for the grant of Share Options, as it aims to retain high-caliber employees[81] - During the period ended June 30, 2024, 88,000 share options lapsed[83] - The number of share options granted under the company's share option scheme for the interim period is approximately 4.5% of the weighted average number of shares issued during the same period[82] Audit and Compliance - The Audit Committee has reviewed the unaudited consolidated interim financial statements for the period[93] - The Remuneration Committee is responsible for reviewing and approving matters related to share schemes under Chapter 17 of the Listing Rules[89] - The report does not mention any new products, technologies, market expansions, or mergers and acquisitions[74] - The report is dated August 30, 2024, and includes the current executive and independent non-executive Directors[92]