香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部份內容而產生或因依 賴該等內容而引致的任何損失承擔任何責任。 公司秘書、授權代表及法律程序代理人的變更 中國雨潤食品集團有限公司（「本公司」）董事會（「董事會」）謹此宣佈，李詠思 女士（「李女士」）已辭任本公司的副總裁、公司秘書（「公司秘書」）、香港聯合 交易所有限公司（「聯交所」）證券上市規則（「上市規則」）第 3.05 條項下本公司 的授權代表（「授權代表」）及根據公司條例（香港法例第 622 章 ）第 16 部及上市規 則第 19.05(2)條代表本公司於香港接收法律程序文件及通知之代理人（「 法律程序代 理人」）， 自 2025 年 9 月 19 日起生效。 李女士已確認，彼與董事會並無任何意見分歧，亦無任何有關彼辭任的事宜需提請本 公司股東或聯交所垂注。 CHINA YURUN FOOD GROUP LIMITED 中 國 雨 潤 食 品 集 團 有 限 公 司 * （於百慕達註冊成立之有限公司） （股份代號：1068） 2 董事會欣然宣佈，陳小密女士（ ...

China Yurun Food Group Limited 中國雨潤食品集團有限公司* (Incorporated in Bermuda with limited liability) （於百慕達註冊成立之有限公司） (Stock Code 股份代號：1068) NOTIFICATION LETTER 通知信函 22 September 2025 Should you have any queries relating to this notification, please call the Branch Share Registrar's telephone hotline at (852) 2980 1333 from 9:00 a.m. to 6:00 p.m., Monday to Friday (excluding public holidays). Yours faithfully, China Yurun Food Group Limited ZHU Yuan Chairman Note: Corporate Communications include any document(s) is ...

China Yurun Food Group Limited (the "Company") China Yurun Food Group Limited 中國雨潤食品集團有限公司* (Incorporated in Bermuda with limited liability) （於百慕達註冊成立之有限公司） (Stock Code 股份代號：1068) NOTIFICATION LETTER 通知信函 Dear Non-registered Holder(s) (Note 1), 22 September 2025 中國雨潤食品集團有限公司（「本公司」） －二零二五年中期報告之刊發通知（「本次公司通訊」） – Notice of publication of Interim Report 2025 (the "Current Corporate Communication") The English and Chinese versions of the Company's Current Corporate Communications are available on the Company's we ...

[Company Information](index=3&type=section&id=Company%20Information) This section provides fundamental company details, including board composition, committees, auditors, and contact information [Board of Directors and Committee Composition](index=3&type=section&id=Board%20of%20Directors%20and%20Committee%20Composition) This chapter lists the company's basic information, including board members, committee compositions, company secretary, authorized representatives, auditors, and stock code - **Board composition:** Executive Directors Zhu Yuan (Chairperson and Chief Executive Officer), Yang Linwei; Independent Non-executive Directors Gao Hui, Chen Jianguo, Xu Xinglian[4](index=4&type=chunk) - **Audit Committee Chairperson:** Gao Hui[4](index=4&type=chunk) - **Company Secretary and Authorized Representative:** Li Wing Sze[4](index=4&type=chunk) - **Auditor:** BDO Limited[4](index=4&type=chunk) - **Stock Code:** 1068[5](index=5&type=chunk) [Management Discussion and Analysis](index=4&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's perspective on the company's performance, industry trends, and financial position [Industry Review](index=4&type=section&id=Industry%20Review) The Chinese economy faced complexities in H1 2025, with a fragile recovery, while the hog farming industry experienced significant price pressure - China's GDP grew by **5.3% year-on-year** in H1 2025 (at constant prices)[7](index=7&type=chunk) - National Consumer Price Index (CPI) **decreased by 0.1% year-on-year**, indicating insufficient consumer willingness[7](index=7&type=chunk) - Hog slaughter volume **increased by 0.6% year-on-year** to **366.19 million heads**[7](index=7&type=chunk) - Hog inventory **increased by 2.2% year-on-year** to **424.47 million heads**[7](index=7&type=chunk) - Long-term trend of pork consumption is expected to **decline** due to improved living standards, increased health awareness, aging population, and declining birth rates[7](index=7&type=chunk) [Business Review](index=4&type=section&id=Business%20Review) The Group focused on "Harbin Meat Union" products, but reduced low-profit slaughtering and terminated some processing plant leases, leading to a significant revenue decrease - Core brand: 'Harbin Meat Union' series, adhering to traditional craftsmanship while exploring innovation[8](index=8&type=chunk) - Average live hog price in H1 2025: **RMB15.32/kg**, a **2.2% year-on-year decrease**[8](index=8&type=chunk) - Average pork retail price in H1 2025: **RMB26.48/kg**, a **3.4% year-on-year increase**[8](index=8&type=chunk) - Overall revenue **decreased by approximately 52.6% year-on-year**[10](index=10&type=chunk) [Product Quality and R&D](index=5&type=section&id=Product%20Quality%20and%20R%26D) The Group upholds "quality first" by strictly controlling food safety from raw material procurement to sales, ensuring product consistency - Core principle: 'Quality First', strict food safety standards[9](index=9&type=chunk) - Quality control: Strict control over every stage from raw material procurement, production, processing to sales[9](index=9&type=chunk) [Sales and Distribution](index=5&type=section&id=Sales%20and%20Distribution) The Group strategically reduced low-profit slaughtering and terminated some processing plant leases, leading to decreased sales, though chilled and low-temperature processed meats remain key - Strategic adjustment: Reduced production at individual low-profit slaughtering plants and terminated businesses related to some processed meat product plant lease agreements[10](index=10&type=chunk) Product Sales Performance | Product Type | H1 2025 Sales (HK$) | H1 2024 Sales (HK$) | Year-on-year Change | % of Total Revenue (2025) | % of Total Revenue (2024) | | :----------------------- | :------------------ | :------------------ | :------------------ | :------------------------ | :------------------------ | | Chilled Meat | HK$54 million | HK$270 million | -80.1% | 21% | 50% | | Low-temperature Processed Meat | HK$185 million | HK$154 million | +20.7% | 73% | 28% | [Production Facilities and Capacity](index=5&type=section&id=Production%20Facilities%20and%20Capacity) As of June 30, 2025, the Group's annual production capacity for upstream slaughtering and downstream processed meat products remained consistent with December 31, 2024 - Upstream slaughtering annual capacity: Approximately **2.35 million heads**[11](index=11&type=chunk) - Downstream processed meat products annual capacity: Approximately **20,000 tonnes**[11](index=11&type=chunk) - Capacity stability: Consistent with December 31, 2024[11](index=11&type=chunk) [Financial Review and Key Performance Indicators](index=5&type=section&id=Financial%20Review%20and%20Key%20Performance%20Indicators) The Group's H1 2025 revenue significantly decreased to HK$255 million, with loss attributable to equity holders increasing to HK$11 million, despite an improved gross margin - H1 2025 revenue: **HK$255 million** (H1 2024: HK$539 million), a **52.6% year-on-year decrease**[12](index=12&type=chunk) - Loss attributable to equity holders: **HK$11 million** (H1 2024: HK$10 million)[12](index=12&type=chunk) - Basic and diluted loss per share: **HK$0.006** (unchanged from H1 2024)[12](index=12&type=chunk) [Revenue](index=6&type=section&id=Revenue) Total revenue for H1 2025 was HK$255 million, a 52.6% year-on-year decrease, driven by significant declines in upstream business and a shift towards low-temperature processed products Total Revenue | Indicator | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | Year-on-year Change | | :-------- | :--------------------- | :--------------------- | :------------------ | | Revenue | 255,353 | 538,975 | -52.6% | [Chilled and Frozen Meat](index=6&type=section&id=Chilled%20and%20Frozen%20Meat) Upstream business sales revenue significantly decreased by 77.7% to HK$70 million, with chilled meat sales down 80.1% and its proportion of total revenue falling from 50% to 21% - Upstream business total sales revenue: **HK$70 million** (H1 2024: HK$312 million), a **77.7% year-on-year decrease**[14](index=14&type=chunk) - Chilled meat sales: **HK$54 million** (H1 2024: HK$270 million), an **80.1% year-on-year decrease**[14](index=14&type=chunk) - Chilled meat as a percentage of total revenue: **21%** (H1 2024: 50%)[14](index=14&type=chunk) - Frozen meat sales: **HK$16 million** (H1 2024: HK$42 million), a **61.9% year-on-year decrease**[14](index=14&type=chunk) [Processed Meat Products](index=6&type=section&id=Processed%20Meat%20Products) Processed meat product sales decreased by 18.1% to HK$185 million, with low-temperature processed meat revenue growing by 20.7% and its share of total revenue significantly increasing to 73% - Processed meat product sales: **HK$185 million** (H1 2024: HK$227 million), an **18.1% year-on-year decrease**[15](index=15&type=chunk) - Low-temperature processed meat revenue: **HK$185 million** (H1 2024: HK$154 million), a **20.7% year-on-year increase**[15](index=15&type=chunk) - Low-temperature processed meat as a percentage of total revenue: **73%** (H1 2024: 28%)[15](index=15&type=chunk) - High-temperature processed meat revenue: **None** in H1 2025 (H1 2024: HK$73 million), due to expiration of plant lease agreements[15](index=15&type=chunk) [Gross Profit and Gross Margin](index=6&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Total gross profit decreased to HK$58 million, but the overall gross margin improved to 22.9% due to a strategic focus on higher-margin downstream businesses - Total gross profit: **HK$58 million** (H1 2024: HK$76 million), a **22.7% year-on-year decrease**[16](index=16&type=chunk) - Overall gross margin: **22.9%** (H1 2024: 14.0%), an **8.9 percentage point increase**[16](index=16&type=chunk) - Upstream business gross margin: **1.5%** (H1 2024: 1.4%), a **0.1 percentage point increase**[16](index=16&type=chunk) - Low-temperature processed meat products gross margin: **30.9%** (H1 2024: 37.2%), a **6.3 percentage point decrease** due to increased raw material costs[16](index=16&type=chunk) [Other Net Loss / Income](index=6&type=section&id=Other%20Net%20Loss%20%2F%20Income) The Group recorded an other net loss of HK$2.2 million, primarily due to reduced government subsidies and gains from asset disposals - Other net loss: **HK$2.2 million** (H1 2024: net income of HK$1.8 million)[17](index=17&type=chunk) Composition of Other Net (Loss) / Income | Item | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :------------------------- | :--------------------- | :--------------------- | | Government subsidies | – | 468 | | Gain on disposal of property, plant and equipment | – | 2,031 | | Other expenses | (2,431) | (981) | [Operating Expenses](index=7&type=section&id=Operating%20Expenses) Operating expenses decreased by 20.1% to HK$52 million due to lower sales volume, but their proportion of revenue increased to 20.5% - Total operating expenses: **HK$52 million** (H1 2024: HK$66 million), a **20.1% year-on-year decrease**[18](index=18&type=chunk) - Operating expenses as a percentage of revenue: **20.5%** (H1 2024: 12.2%)[18](index=18&type=chunk) - Reason for decrease: Lower sales volume led to reduced sales-related direct expenses[18](index=18&type=chunk) [Operating Results](index=7&type=section&id=Operating%20Results) The Group's operating profit significantly decreased to HK$4 million from HK$12 million in the prior period - Operating profit: **HK$4 million** (H1 2024: HK$12 million)[19](index=19&type=chunk) [Net Finance Costs](index=7&type=section&id=Net%20Finance%20Costs) Net finance costs decreased by 23.7% to HK$19 million, mainly due to lower interest rates on some bank borrowings and no longer accruing overdue interest - Net finance costs: **HK$19 million** (H1 2024: HK$25 million), a **23.7% year-on-year decrease**[20](index=20&type=chunk) - Reason for decrease: Lower interest rates on some bank borrowings and no longer accruing overdue interest and penalties[20](index=20&type=chunk) [Income Tax](index=7&type=section&id=Income%20Tax) Income tax expense was HK$0.004 million, compared to a credit of HK$0.05 million in the prior period - Income tax expense: **HK$0.004 million** (H1 2024: credit of HK$0.05 million)[21](index=21&type=chunk) [Loss Attributable to Equity Holders of the Company](index=7&type=section&id=Loss%20Attributable%20to%20Equity%20Holders%20of%20the%20Company) The loss attributable to equity holders of the Company expanded to HK$11 million, compared to HK$10 million in the prior period - Loss attributable to equity holders of the Company: **HK$11 million** (H1 2024: HK$10 million)[22](index=22&type=chunk) [Financial Resources](index=7&type=section&id=Financial%20Resources) Cash and cash equivalents decreased to HK$21 million, with HK$438 million in outstanding bank borrowings, mostly due within one year, and net cash outflow for debt repayment and operations - Cash and cash equivalents: **HK$21 million** (December 31, 2024: HK$41 million), a **decrease of approximately HK$20 million**[23](index=23&type=chunk) - Outstanding bank borrowings: **HK$438 million** (December 31, 2024: HK$444 million), of which **HK$376 million** is due within one year[23](index=23&type=chunk) - Fixed-rate debt ratio: **95%** (December 31, 2024: 94%)[24](index=24&type=chunk) - Reason for net cash outflow: Primarily for repayment of bank borrowings and operating activities[24](index=24&type=chunk) - Capital expenditure: **HK$1.3 million** (H1 2024: HK$10 million)[24](index=24&type=chunk) [Breach of Loan Agreements](index=8&type=section&id=Breach%20of%20Loan%20Agreements) The Group failed to meet covenants for HK$349 million in bank borrowings, which are overdue, but management is actively negotiating with banks to mitigate immediate repayment risks - Bank borrowings in breach of covenants: **HK$349 million** (December 31, 2024: HK$344 million)[25](index=25&type=chunk) - Overdue borrowings and accrued interest: **HK$272 million** (December 31, 2024: HK$251 million)[25](index=25&type=chunk) - Restructuring plan: Related debts are part of the consolidated restructuring described in the company's 2021 and 2022 financial reports[26](index=26&type=chunk) - Management response: Actively communicating with a state-owned commercial bank to discuss extension, renewal, and/or revision of loan terms[27](index=27&type=chunk) - Risk assessment: The Board assesses that the risk of immediate repayment demands due to overdue borrowings is controllable and will not have a material adverse impact on the going concern ability[27](index=27&type=chunk) [Assets and Liabilities](index=9&type=section&id=Assets%20and%20Liabilities) Total assets decreased to HK$621 million, with total liabilities at HK$1.351 billion, resulting in a net liability position, though non-current assets support operations - Total assets: **HK$621 million** (December 31, 2024: HK$645 million), a **decrease of HK$24 million**[28](index=28&type=chunk) - Total liabilities: **HK$1.351 billion** (December 31, 2024: HK$1.353 billion), a **decrease of HK$2 million**[28](index=28&type=chunk) - Property, plant and equipment: **HK$195 million** (December 31, 2024: HK$199 million), a **decrease of HK$3 million**[28](index=28&type=chunk) - Net liability position: Recorded a net liability position, but holds approximately **HK$235 million** in non-current assets[29](index=29&type=chunk) - Net current liabilities: **HK$902 million** (December 31, 2024: HK$872 million)[29](index=29&type=chunk) - Net liabilities: **HK$729 million** (December 31, 2024: HK$708 million)[29](index=29&type=chunk) - Board confidence: Believes the Group has sufficient financial resources to support operations and fulfill financial obligations[30](index=30&type=chunk) [Pledge of Assets](index=10&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, approximately HK$12 million in trade receivables were pledged as collateral for HK$23 million in bank borrowings - Carrying value of pledged trade receivables: **HK$12 million** (December 31, 2024: HK$17 million)[34](index=34&type=chunk) - Total pledged bank borrowings: **HK$23 million** (December 31, 2024: HK$27 million)[34](index=34&type=chunk) [Significant Investments, Acquisitions and Disposals of Subsidiaries and Associates, and Plans for Major Investments or Capital Asset Purchases](index=10&type=section&id=Significant%20Investments%2C%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%20and%20Associates%2C%20and%20Plans%20for%20Major%20Investments%20or%20Capital%20Asset%20Purchases) The Group had no significant investments, acquisitions, or disposals of subsidiaries/associates, nor any plans for major investments or capital asset purchases during the reporting period - Significant investments and M&A: No significant investments or major acquisitions and disposals of subsidiaries and associates during the reporting period[35](index=35&type=chunk) - Future plans: No plans for major investments or capital asset purchases as of the reporting date[35](index=35&type=chunk) [Contingent Liabilities](index=10&type=section&id=Contingent%20Liabilities) A PRC bank has sued a subsidiary for immediate repayment of HK$349 million in bank borrowings, which the Group is actively negotiating to resolve - Major litigation: A PRC bank demands immediate repayment of approximately **HK$349 million** in bank borrowings from a Group subsidiary[36](index=36&type=chunk) - Management response: The Group is negotiating with the bank to resolve these litigations[36](index=36&type=chunk) - Other contingent liabilities: No other significant litigations or contingent liabilities beyond those disclosed above[36](index=36&type=chunk) [Exchange Rate Fluctuation Risk and Hedging](index=10&type=section&id=Exchange%20Rate%20Fluctuation%20Risk%20and%20Hedging) The Group's operations are primarily settled in RMB, which is subject to exchange controls, and it continuously monitors foreign exchange risk to maintain it within a controllable range - Primary settlement currency: RMB[37](index=37&type=chunk) - Foreign exchange control: RMB is subject to foreign exchange control and is not freely convertible[37](index=37&type=chunk) - Risk management: Continuously monitors foreign exchange risk, considering exchange rate trends and cash flow needs to ensure risk is controllable[37](index=37&type=chunk) [Human Resources](index=11&type=section&id=Human%20Resources) The Group's headcount decreased to approximately 600 employees, with total staff costs of HK$26 million, while maintaining a people-oriented approach to employee welfare and development - Total employees: Approximately **600** (December 31, 2024: approximately 1,000)[38](index=38&type=chunk) - Total staff costs: **HK$26 million** (H1 2024: HK$35 million)[38](index=38&type=chunk) - Staff costs as a percentage of revenue: **10.1%** (H1 2024: 6.4%)[38](index=38&type=chunk) - Human resources strategy: Safeguards employees' legal rights, provides competitive salaries, performance bonuses, and social insurance, optimizes training programs, and establishes fair promotion mechanisms[38](index=38&type=chunk) [Environmental Protection and Performance](index=11&type=section&id=Environmental%20Protection%20and%20Performance) The Group prioritizes sustainable development, integrating green and low-carbon principles into its governance and operations, and is committed to a comprehensive green transformation - Core philosophy: Sustainable development, actively fulfilling corporate social responsibility[39](index=39&type=chunk) - Implementation measures: Optimizes energy structure, improves energy efficiency, promotes green office concepts, and advocates green travel[39](index=39&type=chunk) - Future outlook: Comprehensively promotes the company's transformation towards low-carbon and green operations[39](index=39&type=chunk) [Other Information](index=12&type=section&id=Other%20Information) This section covers interim dividends, directors' and major shareholders' interests, share option schemes, corporate governance, and audit committee reviews [Interim Dividend](index=12&type=section&id=Interim%20Dividend) The Board resolved not to declare an interim dividend for the reporting period - Interim dividend declaration: **None** (H1 2024: None)[41](index=41&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures](index=12&type=section&id=Directors%27%20and%20Chief%20Executive%27s%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures) As of June 30, 2025, no directors or chief executives held any disclosable interests or short positions in the company's securities - Directors' and Chief Executive's interests: As of June 30, 2025, none held any disclosable interests or short positions in shares, underlying shares, or debentures[42](index=42&type=chunk) [Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares](index=12&type=section&id=Substantial%20Shareholders%27%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares) Willie Holdings Limited and its associated parties, Mr. Zhu Yicai and Ms. Wu Xueqin, are substantial shareholders, holding 25.82% of the company's issued shares Substantial Shareholders' Interests | Name / Designation | Nature | Number of Shares | Approximate Percentage of Issued Shares | | :---------------------- | :----- | :--------------- | :-------------------------------------- | | Willie Holdings Limited | Long | 470,699,900 | 25.82% | | Zhu Yicai | Long | 470,699,900 | 25.82% | | Wu Xueqin | Long | 470,699,900 | 25.82% | - Relationship: Mr. Zhu Yicai and his spouse Ms. Wu Xueqin respectively hold **93.41%** and **6.59%** equity interests in Willie Holdings[43](index=43&type=chunk) [Share Option Scheme](index=13&type=section&id=Share%20Option%20Scheme) The new share option scheme, adopted on August 7, 2015, has expired without any options granted, exercised, lapsed, or cancelled during the reporting period - New Share Option Scheme adoption date: **August 7, 2015**[45](index=45&type=chunk) - Number of share options authorized for grant (beginning/end of period): **182,275,565 shares**[47](index=47&type=chunk) - Outstanding share options: **None** at the beginning and end of the reporting period[47](index=47&type=chunk) - Share option activities (during the reporting period): **None** granted/exercised/lapsed/cancelled[47](index=47&type=chunk) - New Share Option Scheme status: Expired, no share options granted since adoption[47](index=47&type=chunk) [Corporate Governance](index=14&type=section&id=Corporate%20Governance) The company adheres to high corporate governance standards, with a five-member board and committees, but the Chairman and CEO roles are combined, which the Board deems beneficial - Governance principles: Integrity, transparency, openness, and efficiency[50](index=50&type=chunk) - Board composition: Five directors, with Audit, Remuneration, and Nomination Committees[50](index=50&type=chunk) - Risk management and internal control: Systems established to safeguard assets, manage risks, and maintain proper records[50](index=50&type=chunk) - Non-compliance with Code Provision C.2.1: Roles of Chairperson and Chief Executive Officer are combined and held by Ms. Zhu Yuan[51](index=51&type=chunk) - Board explanation: Believes this arrangement facilitates business strategy formulation and execution, and the Board's experienced members, with over half being independent non-executive directors, ensure a balance of power[51](index=51&type=chunk) - Future plan: To identify and appoint a suitable Chief Executive Officer in the long term[51](index=51&type=chunk) [Standard Code for Securities Transactions by Directors](index=15&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The company adopted the Standard Code for directors' securities transactions, and all directors complied with its provisions during the reporting period - Code of conduct: Adopted the 'Standard Code'[52](index=52&type=chunk) - Compliance: All directors complied with the 'Standard Code' during the reporting period[52](index=52&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=15&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any of its listed securities during the reporting period - Listed securities transactions: Neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities during the reporting period[53](index=53&type=chunk) [Audit Committee](index=15&type=section&id=Audit%20Committee) The Audit Committee reviewed the Group's accounting standards, internal controls, risk management, and financial reporting, including the unaudited interim results - Responsibilities: Reviews accounting standards and practices, discusses internal controls, risk management, and financial reporting matters[54](index=54&type=chunk) - Review scope: Includes the Group's unaudited interim results for the reporting period[54](index=54&type=chunk) [Significant Events Affecting the Group After the Reporting Period](index=15&type=section&id=Significant%20Events%20Affecting%20the%20Group%20After%20the%20Reporting%20Period) No significant events affecting the Group occurred from June 30, 2025, up to the date of this report - Significant events: No significant events affecting the Group occurred from June 30, 2025, up to the reporting date[55](index=55&type=chunk) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=16&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group's loss for H1 2025 widened to HK$15.2 million, with revenue significantly down by 52.6%, despite an improved gross margin Key Financial Data (H1 2025 vs H1 2024) | Indicator | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | Year-on-year Change | | :-------------------------------------- | :--------------------- | :--------------------- | :------------------ | | Revenue | 255,353 | 538,975 | -52.6% | | Cost of sales | (196,967) | (463,472) | -57.5% | | Gross profit | 58,386 | 75,503 | -22.7% | | Operating results | 3,755 | 11,606 | -67.6% | | Net finance costs | (18,958) | (24,842) | -23.7% | | Loss for the period | (15,207) | (13,191) | +15.3% | | Loss attributable to equity holders of the Company | (10,803) | (10,069) | +7.3% | | Basic and diluted loss per share (HK$) | (0.006) | (0.006) | 0% | - Total comprehensive income for the period: **HK$(21,591) thousand** (H1 2024: HK$(48,120) thousand)[59](index=59&type=chunk) [Consolidated Statement of Financial Position](index=18&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets were HK$621 million, with total liabilities at HK$1.351 billion, indicating a persistent net liability position Key Financial Position Data (June 30, 2025 vs December 31, 2024) | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :-------------------------------------- | :--------------------------- | :------------------------------- | | Non-current assets | 234,976 | 238,720 | | Current assets | 386,352 | 406,233 | | Current liabilities | 1,288,795 | 1,278,594 | | Net current liabilities | (902,443) | (872,361) | | Net liabilities | (729,187) | (707,596) | | Total equity attributable to equity holders of the Company | (715,968) | (704,841) | - Cash and cash equivalents: **HK$20,694 thousand** (December 31, 2024: HK$40,983 thousand)[61](index=61&type=chunk) - Bank borrowings (current): **HK$375,990 thousand** (December 31, 2024: HK$369,922 thousand)[61](index=61&type=chunk) [Consolidated Statement of Changes in Equity](index=20&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) The Group's total equity decreased from HK$(707.596) million to HK$(729.187) million, primarily due to the total comprehensive loss for the period - Total equity (end of period): **HK$(729,187) thousand** (June 30, 2024: HK$(737,499) thousand)[65](index=65&type=chunk) - Total equity attributable to equity holders of the Company (end of period): **HK$(715,968) thousand** (June 30, 2024: HK$(727,067) thousand)[65](index=65&type=chunk) - Total comprehensive income for the period: **HK$(21,591) thousand** (H1 2024: HK$(48,120) thousand)[65](index=65&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=21&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) The Group experienced a net decrease of HK$19.478 million in cash and cash equivalents, primarily due to net outflows from operating and financing activities - Net decrease in cash and cash equivalents: **HK$(19,478) thousand** (H1 2024: HK$(7,384) thousand)[66](index=66&type=chunk) - Net cash used in operating activities: **HK$(5,236) thousand** (H1 2024: HK$(33) thousand)[66](index=66&type=chunk) - Net cash used in investing activities: **HK$(312) thousand** (H1 2024: HK$(5,882) thousand)[66](index=66&type=chunk) - Net cash used in financing activities: **HK$(13,930) thousand** (H1 2024: HK$(1,469) thousand), primarily for repayment of bank borrowings[66](index=66&type=chunk) - Cash and cash equivalents at June 30: **HK$20,694 thousand** (H1 2024: HK$31,666 thousand)[66](index=66&type=chunk) [Notes to the Unaudited Interim Financial Report](index=22&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Financial%20Report) This section provides detailed explanations and disclosures for the unaudited interim financial report, covering accounting policies, financial instruments, and related party transactions [1. Reporting Entity](index=22&type=section&id=1.%20Reporting%20Entity) China Yurun Food Group Limited, incorporated in Bermuda, presents its interim financial report covering the company and its subsidiaries - Place of incorporation: **Bermuda**[68](index=68&type=chunk) - Scope of report: The Company and its subsidiaries[68](index=68&type=chunk) [2. Basis of Preparation](index=22&type=section&id=2.%20Basis%20of%20Preparation) The interim financial report is prepared under IAS 34 and HKEX Listing Rules, highlighting significant going concern uncertainties due to net loss, net current liabilities, and overdue bank borrowings - Preparation standards: **IAS 34** and Appendix D2 of the **Listing Rules**[69](index=69&type=chunk) - Going concern uncertainties: As of June 30, 2025, the Group recorded a net loss of **HK$15,207 thousand**, net current liabilities of **HK$902,443 thousand**, and net liabilities of **HK$729,187 thousand**[70](index=70&type=chunk) - Bank borrowing status: Bank borrowings of **HK$437,710 thousand**, of which **HK$348,827 thousand** plus accrued interest of **HK$271,858 thousand** are overdue and in breach of covenants[70](index=70&type=chunk) - Management plans: (i) Negotiate with banks for updated financing terms and waivers; (ii) Bank borrowings to be ultimately settled as part of a consolidated restructuring; (iii) Seek additional new financing[72](index=72&type=chunk)[73](index=73&type=chunk) - Going concern effectiveness: Depends on the successful outcome of the aforementioned plans and measures[72](index=72&type=chunk) [3. Changes in Accounting Policies](index=24&type=section&id=3.%20Changes%20in%20Accounting%20Policies) The Group adopted new or revised IFRSs, including amendments to IAS 21 and IFRS 1, which had no material impact on the interim financial report - Adoption of new/revised standards: Amendments to **IAS 21** and **IFRS 1**[75](index=75&type=chunk) - Impact: No material impact on the interim financial report[75](index=75&type=chunk) [4. Revenue and Segment Information](index=24&type=section&id=4.%20Revenue%20and%20Segment%20Information) The Group's revenue primarily comes from chilled and frozen meat and processed meat products, with total revenue significantly decreasing in H1 2025 Segment Revenue (H1 2025 vs H1 2024) | Segment | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :----------------------- | :--------------------- | :--------------------- | | Chilled and Frozen Meat | 69,781 | 312,426 | | Processed Meat Products | 185,572 | 226,549 | | **Total** | **255,353** | **538,975** | Segment Results (H1 2025 vs H1 2024) | Segment | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :----------------------- | :--------------------- | :--------------------- | | Chilled and Frozen Meat | (12,225) | (22,510) | | Processed Meat Products | 22,037 | 40,189 | | **Total Reported Segment Results** | **9,812** | **17,679** | - Unallocated head office and corporate expenses: **HK$(6,057) thousand** (H1 2024: HK$(6,073) thousand)[78](index=78&type=chunk) [5. Seasonality of Operations](index=25&type=section&id=5.%20Seasonality%20of%20Operations) The Group's operations are subject to seasonal fluctuations, with demand for processed meat products typically peaking before the Lunar New Year - Seasonal impact: Demand for processed meat products peaks before the Lunar New Year (January or February)[79](index=79&type=chunk) [6. Other Net (Loss) / Income](index=25&type=section&id=6.%20Other%20Net%20%28Loss%29%20%2F%20Income) The Group recorded an other net loss of HK$2.164 million in H1 2025, mainly due to reduced government subsidies and gains from asset disposals Composition of Other Net (Loss) / Income | Item | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :------------------------- | :--------------------- | :--------------------- | | Government subsidies | – | 468 | | Gain on disposal of property, plant and equipment | – | 2,031 | | Other expenses | (2,431) | (981) | | **Total** | **(2,164)** | **1,809** | [7. Loss Before Income Tax](index=26&type=section&id=7.%20Loss%20Before%20Income%20Tax) The Group's loss before income tax widened to HK$15.203 million, influenced by net finance costs, staff costs, and other items - Loss before income tax: **HK$(15,203) thousand** (H1 2024: HK$(13,236) thousand)[58](index=58&type=chunk) [7(a) Net Finance Costs](index=26&type=section&id=7%28a%29%20Net%20Finance%20Costs) Net finance costs for H1 2025 decreased, primarily comprising interest on bank borrowings and lease liabilities, despite ongoing issues with overdue borrowings and litigation Composition of Net Finance Costs | Item | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :------------------------- | :--------------------- | :--------------------- | | Interest on bank borrowings | 18,936 | 23,836 | | Interest on lease liabilities | 18 | 1,038 | | Bank charges | 30 | 56 | | Net foreign exchange (gain) / loss | (11) | 57 | | Interest income from bank deposits | (15) | (145) | | **Total** | **18,958** | **24,842** | - Bank borrowings in breach of covenants: **HK$348,827 thousand**, plus accrued interest of **HK$271,858 thousand**, are overdue[81](index=81&type=chunk) - Litigation status: A PRC bank initiated litigation against a subsidiary, demanding immediate repayment of **HK$348,827 thousand** in bank borrowings[84](index=84&type=chunk) - Judged outstanding bank borrowings: **HK$437,726 thousand** (December 31, 2024: HK$416,664 thousand)[84](index=84&type=chunk) [7(b) Staff Costs](index=27&type=section&id=7%28b%29%20Staff%20Costs) Total staff costs for H1 2025 decreased, primarily consisting of salaries, wages, other benefits, and contributions to defined contribution retirement plans Total Staff Costs | Item | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--------------------------------- | :--------------------- | :--------------------- | | Salaries, wages and other benefits | 24,230 | 32,421 | | Contributions to defined contribution retirement plans | 1,469 | 2,276 | | **Total** | **25,699** | **34,697** | [7(c) Other Items](index=27&type=section&id=7%28c%29%20Other%20Items) This section details other significant items affecting loss before income tax, including cost of inventories, impairment losses on trade receivables, and depreciation Other Key Items (H1 2025 vs H1 2024) | Item | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--------------------------------- | :--------------------- | :--------------------- | | Cost of inventories | 196,967 | 463,472 | | (Reversal of) / write-down of inventories | (49) | 484 | | Impairment losses on trade receivables | 10,109 | 5,245 | | Depreciation of property, plant and equipment | 8,956 | 14,208 | [8. Income Tax Expense / (Credit)](index=28&type=section&id=8.%20Income%20Tax%20Expense%20%2F%20%28Credit%29) Income tax expense was HK$4 thousand, with tax exemptions for certain operations in China and no taxable profits in Hong Kong, but a risk of being deemed a PRC resident enterprise - Total income tax expense / (credit): **HK$4 thousand** (H1 2024: HK$(45) thousand)[87](index=87&type=chunk) - Tax exemptions: No income tax in Bermuda and BVI; no taxable profits in Hong Kong; PRC enterprises engaged in primary processing of agricultural products are exempt from corporate income tax[87](index=87&type=chunk) - PRC resident enterprise risk: The Group may be deemed a PRC resident enterprise, subject to **25%** corporate income tax on its global income[87](index=87&type=chunk) [9. Other Comprehensive Income](index=28&type=section&id=9.%20Other%20Comprehensive%20Income) There were no tax implications for other comprehensive income during the six months ended June 30, 2025 - Tax impact: No tax impact[88](index=88&type=chunk) [10. Loss Per Share](index=29&type=section&id=10.%20Loss%20Per%20Share) Both basic and diluted loss per share for H1 2025 remained at HK$0.006, consistent with the prior period - Basic loss per share: **HK$(0.006)** (H1 2024: HK$(0.006))[88](index=88&type=chunk) - Diluted loss per share: **HK$(0.006)** (H1 2024: HK$(0.006)), same as basic loss per share due to no potential ordinary shares[89](index=89&type=chunk) [11. Property, Plant and Equipment](index=29&type=section&id=11.%20Property%2C%20Plant%20and%20Equipment) The carrying value of property, plant, and equipment was HK$195.170 million, with additions and disposals, and no impairment losses recognized - Additions: **HK$1,303 thousand** (H1 2024: HK$6,651 thousand)[91](index=91&type=chunk) - Carrying value of items disposed: **HK$(976) thousand** (H1 2024: HK$(1,694) thousand)[91](index=91&type=chunk) - Impairment assessment: No impairment losses recognized as recoverable amount exceeded carrying amount[91](index=91&type=chunk) [12. Inventories](index=30&type=section&id=12.%20Inventories) Total inventories significantly decreased to HK$28.814 million, primarily comprising finished goods, raw materials, and work-in-progress, with a reversal of inventory write-down - Total inventories: **HK$28,814 thousand** (December 31, 2024: HK$78,439 thousand)[92](index=92&type=chunk) Composition of Inventories (June 30, 2025) | Item | Amount (HK$ thousand) | | :---------- | :-------------------- | | Raw materials | 7,109 | | Work-in-progress | 1,784 | | Finished goods | 19,921 | - Reversal of inventory write-down: **HK$49 thousand** (December 31, 2024: inventory write-down of HK$1,019 thousand)[92](index=92&type=chunk) [13. Trade and Other Receivables](index=30&type=section&id=13.%20Trade%20and%20Other%20Receivables) Total trade and other receivables increased to HK$336.777 million, with net trade receivables at HK$85.896 million, and an increase in trade receivables aged over 180 days - Total trade and other receivables: **HK$336,777 thousand** (December 31, 2024: HK$286,749 thousand)[93](index=93&type=chunk) - Net trade receivables: **HK$85,896 thousand** (December 31, 2024: HK$85,013 thousand)[93](index=93&type=chunk) Trade Receivables Ageing Analysis (June 30, 2025) | Ageing | Amount (HK$ thousand) | | :------------ | :-------------------- | | Within 30 days | 66,569 | | 31 to 90 days | 910 | | 91 to 180 days | 21,357 | | Over 180 days | 15,209 | - Expected credit loss: **HK$(18,149) thousand** (December 31, 2024: HK$(7,997) thousand)[93](index=93&type=chunk) [14. Cash and Cash Equivalents](index=31&type=section&id=14.%20Cash%20and%20Cash%20Equivalents) Total cash and cash equivalents significantly decreased to HK$20.694 million, with most denominated in RMB, which is subject to foreign exchange controls - Total cash and cash equivalents: **HK$20,694 thousand** (December 31, 2024: HK$40,983 thousand)[95](index=95&type=chunk) Currency Composition (June 30, 2025) | Currency | Amount (HK$ thousand) | | :--------- | :-------------------- | | RMB | 18,818 | | USD | 296 | | EUR | 209 | | Other currencies | 1,371 | - RMB foreign exchange control: RMB is not freely convertible but can be exchanged through banks with licensed foreign exchange operations[95](index=95&type=chunk) [15. Trade and Other Payables](index=31&type=section&id=15.%20Trade%20and%20Other%20Payables) Total trade and other payables slightly increased to HK$912.190 million, with significant components including interest payable and litigation loss provisions - Total trade and other payables: **HK$912,190 thousand** (December 31, 2024: HK$908,023 thousand)[96](index=96&type=chunk) Key Components (June 30, 2025) | Item | Amount (HK$ thousand) | | :--------------------------------- | :-------------------- | | Total trade payables | 92,386 | | Customer deposits | 18,670 | | Contract liabilities | 17,465 | | Accrued salaries and welfare | 3,326 | | VAT payable | 67,752 | | Payables for acquisition of property, plant and equipment | 27,647 | | Provision for litigation losses | 64,271 | | Interest payable | 271,858 | | Other payables and accrued expenses | 348,815 | [16. Capital, Reserves and Dividends](index=32&type=section&id=16.%20Capital%2C%20Reserves%20and%20Dividends) The Directors do not recommend declaring an interim dividend for the six months ended June 30, 2025 and 2024 - Interim dividend: Directors do not recommend declaration[98](index=98&type=chunk) [17. Fair Value Measurement of Financial Instruments](index=32&type=section&id=17.%20Fair%20Value%20Measurement%20of%20Financial%20Instruments) The carrying amounts of financial instruments measured at cost or amortized cost did not materially differ from their fair values - Fair value and carrying amount difference: No material difference[98](index=98&type=chunk) [18. Capital Commitments Not Provided for in the Interim Financial Report](index=32&type=section&id=18.%20Capital%20Commitments%20Not%20Provided%20for%20in%20the%20Interim%20Financial%20Report) As of June 30, 2025, the Group had contracted capital commitments of HK$365.634 million - Contracted capital commitments: **HK$365,634 thousand** (December 31, 2024: HK$358,028 thousand)[98](index=98&type=chunk) [19. Contingent Liabilities](index=32&type=section&id=19.%20Contingent%20Liabilities) Aside from the significant litigation disclosed in Note 7(a), the Group is not involved in other material litigations, and non-material litigations are not expected to significantly impact financial performance - Significant litigation: No other significant litigation apart from that disclosed in Note 7(a)[98](index=98&type=chunk) - Non-material litigation: Management believes it will not have a material impact on financial position and performance[98](index=98&type=chunk) [20. Related Party Transactions and Balances](index=33&type=section&id=20.%20Related%20Party%20Transactions%20and%20Balances) The Group engages in various transactions and balances with related parties, including sales and purchases of goods, property leases, and land use rights, with Mr. Zhu Yicai as a key beneficial owner - Related party: Mr. Zhu Yicai is the beneficial shareholder, honorary chairman, and senior advisor of the Company, and holds beneficial interests in related companies[100](index=100&type=chunk) [20(a) Significant Related Party Transactions](index=33&type=section&id=20%28a%29%20Significant%20Related%20Party%20Transactions) The Group conducted sales and purchases of raw materials and finished goods with related parties, with a significant decrease in finished goods sales to related parties Sales and Purchases of Raw Materials and Finished Goods (H1 2025 vs H1 2024) | Transaction Type | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :------------------------------- | :--------------------- | :--------------------- | | Sales of raw materials to related companies | 29 | 72 | | Sales of finished goods to related companies | 2,012 | 114,624 | | Purchases of raw materials from related companies | 1,929 | 1,713 | - Rent payments: **None** paid or payable to related companies in H1 2025 (H1 2024: HK$1,540 thousand)[100](index=100&type=chunk) - Assets provided by related parties: Certain related parties provided properties and land use rights to the Group, with a carrying value of **HK$30,618 thousand**[100](index=100&type=chunk) [20(b) Amounts Due from Related Parties](index=34&type=section&id=20%28b%29%20Amounts%20Due%20from%20Related%20Parties) Trade receivables from related companies amounted to HK$34.530 million, unsecured, interest-free, and expected to be recovered within one year - Trade receivables from related companies: **HK$34,530 thousand** (December 31, 2024: HK$34,530 thousand)[101](index=101&type=chunk) - Terms: Unsecured, interest-free, and expected to be recovered within one year[101](index=101&type=chunk) [20(c) Amounts Due to Related Parties](index=34&type=section&id=20%28c%29%20Amounts%20Due%20to%20Related%20Parties) Trade payables to related companies were HK$12.927 million, and other payables were HK$247.102 million, both unsecured, interest-free, and without fixed repayment terms Amounts Due to Related Companies (June 30, 2025 vs December 31, 2024) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--------------------------------- | :--------------------------- | :------------------------------- | | Trade payables to related companies | 12,927 | 12,927 | | Other payables to related companies | 247,102 | 237,052 | - Terms: Unsecured, interest-free, and without fixed repayment terms[102](index=102&type=chunk) [20(d) Key Management Personnel Compensation](index=34&type=section&id=20%28d%29%20Key%20Management%20Personnel%20Compensation) Total key management personnel compensation for H1 2025 was HK$1.311 million, including salaries, other emoluments, and retirement benefit plan contributions Total Key Management Personnel Compensation | Item | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--------------------------------- | :--------------------- | :--------------------- | | Salaries and other emoluments | 1,286 | 1,292 | | Contributions to retirement benefit plans | 25 | 26 | | **Total** | **1,311** | **1,318** |

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: 中國雨潤食品集團有限公司 呈交日期: 2025年9月2日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01068 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 3,000,000,000 | HKD | | 0.1 | HKD | | 300,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 3,000,000,000 | HKD | | 0.1 | HKD | | 300,000,000 | 本月底法定/註冊 ...

Group 1 - The core viewpoint of the article is that Yurun Food (01068) reported a significant decline in its mid-year performance for 2025, with revenues of approximately HKD 255 million, representing a year-on-year decrease of 52.62% [1] - The company reported a loss attributable to equity holders of HKD 10.803 million, which is an increase of 7.29% compared to the previous year [1] - The loss per share for the company was HKD 0.006 [1]

Core Viewpoint - Yurun Food (01068) reported a significant decline in its mid-year performance for 2025, indicating challenges in its financial health [1] Financial Performance - The company's revenue for the period was approximately HKD 255 million, representing a year-on-year decrease of 52.62% [1] - The loss attributable to equity holders amounted to HKD 10.803 million, which is an increase of 7.29% compared to the previous year [1] - The loss per share was reported at HKD 0.006 [1]

Company Information and Report Statement [Report Statement and Company Overview](index=1&type=section&id=Company%20Information%20and%20Report%20Statement) This report presents the unaudited condensed consolidated interim results of China Yurun Food Group Limited for the six months ended June 30, 2025, which has been reviewed by the company's Audit Committee - This report presents the unaudited condensed consolidated interim results of China Yurun Food Group Limited for the six months ended June 30, 2025[2](index=2&type=chunk)[3](index=3&type=chunk) - The report has been reviewed by the company's Audit Committee[3](index=3&type=chunk) Financial Statements [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 experienced a significant decline in revenue, with both loss for the period and total comprehensive income expanding Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data | Indicator | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 255,353 | 538,975 | -52.6% | | Cost of sales | (196,967) | (463,472) | -57.5% | | Gross profit | 58,386 | 75,503 | -22.7% | | Results from operating activities | 3,755 | 11,606 | -67.6% | | Loss before income tax | (15,203) | (13,236) | +14.9% | | Loss for the period | (15,207) | (13,191) | +15.3% | | Loss attributable to owners of the Company | (10,803) | (10,069) | +7.3% | | Total comprehensive income for the period | (21,591) | (48,120) | -55.1% | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's non-current assets slightly decreased, current assets declined, and both net current liabilities and net liabilities expanded, indicating continued financial pressure Condensed Consolidated Statement of Financial Position Key Data | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 234,976 | 238,720 | -1.6% | | Current assets | 386,352 | 406,233 | -4.9% | | Current liabilities | 1,288,795 | 1,278,594 | +0.8% | | Net current liabilities | (902,443) | (872,361) | +3.4% | | Net liabilities | (729,187) | (707,596) | +3.0% | | Cash and cash equivalents | 20,694 | 40,983 | -49.5% | | Bank borrowings (total) | 437,710 | 443,611 | -1.3% | [Condensed Consolidated Statement of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, operating, investing, and financing activities all showed net cash outflows, leading to a significant decrease in cash and cash equivalents Condensed Consolidated Statement of Cash Flows Key Data | Indicator | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Net cash used in operating activities | (5,236) | (33) | | Net cash used in investing activities | (312) | (5,882) | | Net cash used in financing activities | (13,930) | (1,469) | | Net decrease in cash and cash equivalents | (19,478) | (7,384) | | Cash and cash equivalents at June 30 | 20,694 | 31,666 | Notes to the Financial Statements [Basis of Preparation and Going Concern](index=6&type=section&id=1%20Basis%20of%20Preparation) The company's interim financial report is prepared in accordance with International Accounting Standards, but faces significant going concern uncertainties, including net losses, expanded net current liabilities and net liabilities, and substantial overdue and defaulted bank borrowings; management has proposed several plans to alleviate liquidity pressure, but the effectiveness of going concern depends on the successful implementation of these plans - The Group recorded a net loss of **HKD 15,207,000**, with net current liabilities and net liabilities reaching **HKD 902,443,000** and **HKD 729,187,000** respectively[9](index=9&type=chunk) - Certain bank borrowings of **HKD 348,827,000** along with accrued interest of **HKD 271,858,000** are overdue, and loan covenants have not been met, leading to legal proceedings initiated by banks[10](index=10&type=chunk) - Management plans to improve the financial position by negotiating updated financing terms with banks, seeking consolidated restructuring for final settlement, and obtaining additional new financing, but significant uncertainties exist regarding going concern[11](index=11&type=chunk)[12](index=12&type=chunk) [Changes in Accounting Policies](index=7&type=section&id=2%20Changes%20in%20Accounting%20Policies) The adoption of new or revised International Financial Reporting Standards in the current period had no significant impact on the interim financial report - The adoption of new or revised International Financial Reporting Standards had no significant impact on the interim financial report[13](index=13&type=chunk) [Revenue and Segment Information](index=8&type=section&id=3%20Revenue%20and%20Segment%20Information) The Group's main businesses are divided into chilled and frozen meat and processed meat products segments; in the first half of 2025, external revenue from both segments significantly decreased, leading to a 52.6% year-on-year reduction in total revenue - The Group's reportable segment information is divided into chilled and frozen meat and processed meat products[14](index=14&type=chunk) [Segment Results](index=8&type=section&id=3(a)%20Segment%20Results) External revenue from both the chilled and frozen meat segment and the processed meat products segment significantly declined, leading to a substantial decrease in total reportable segment revenue and results Segment Results Key Data | Segment | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Chilled and frozen meat external revenue | 69,781 | 312,426 | -77.7% | | Processed meat products external revenue | 185,572 | 226,549 | -18.1% | | Total reportable segment revenue | 255,353 | 538,975 | -52.6% | | Reportable segment results | 9,812 | 17,679 | -44.5% | [Reportable Segment Revenue and Loss](index=9&type=section&id=3(b)%20Reportable%20Segment%20Revenue%20and%20Loss) The Group's consolidated revenue significantly decreased year-on-year, and the consolidated loss for the period expanded, primarily due to net finance costs and unallocated head office and corporate expenses Reportable Segment Revenue and Loss Key Data | Indicator | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Consolidated revenue | 255,353 | 538,975 | | Reportable segment profit before tax | 9,812 | 17,679 | | Net finance costs | (18,958) | (24,842) | | Income tax (expense) / credit | (4) | 45 | | Unallocated head office and corporate expenses | (6,057) | (6,073) | | Consolidated loss for the period | (15,207) | (13,191) | [Other Net (Losses) / Income](index=9&type=section&id=4%20Other%20Net%20(Losses)%20%2F%20Income) In the first half of 2025, the Group shifted from net income to net loss, primarily due to an increase in other expenses Other Net (Losses) / Income Details | Item | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Government grants | – | 468 | | Gain on disposal of property, plant and equipment | – | 2,031 | | Rental income | 132 | 56 | | Sales of scrap materials | 135 | 235 | | Other expenses | (2,431) | (981) | | **Other net (losses) / income** | **(2,164)** | **1,809** | [Loss Before Income Tax](index=10&type=section&id=5%20Loss%20Before%20Income%20Tax) Loss before income tax is primarily affected by net finance costs, staff costs, and cost of inventories - Loss before income tax has been arrived at after charging / (crediting) net finance costs, staff costs, and other items[16](index=16&type=chunk) [Net Finance Costs](index=10&type=section&id=5(a)%20Net%20Finance%20Costs) Net finance costs primarily consist of interest on bank borrowings, which decreased in the current period, but a significant amount of bank borrowings remains overdue and is subject to a restructuring plan Net Finance Costs Details | Item | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Interest on bank borrowings | 18,936 | 23,836 | | Interest on lease liabilities | 18 | 1,038 | | Bank charges | 30 | 56 | | Net foreign exchange (gain) / loss | (11) | 57 | | Interest income from bank deposits | (15) | (145) | | **Net finance costs** | **18,958** | **24,842** | - As of June 30, 2025, bank borrowings of **HKD 348,827,000** and accrued interest of **HKD 271,858,000** are overdue and have been included in a consolidated restructuring plan[16](index=16&type=chunk)[17](index=17&type=chunk) - Chinese courts have issued judgments for bank borrowings with a principal of **HKD 327,697,000**, requiring the subsidiary to repay the adjudicated outstanding bank borrowings together with accrued interest totaling **HKD 437,726,000**[18](index=18&type=chunk) [Staff Costs](index=11&type=section&id=5(b)%20Staff%20Costs) Staff costs, primarily comprising salaries, wages, and other benefits, decreased year-on-year in the current period Staff Costs Details | Item | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Salaries, wages and other benefits | 24,230 | 32,421 | | Contributions to defined contribution retirement schemes | 1,469 | 2,276 | | **Total** | **25,699** | **34,697** | [Other Items](index=11&type=section&id=5(c)%20Other%20Items) Other items primarily include cost of inventories, impairment losses on trade receivables, and depreciation and amortization, with significant decreases in cost of inventories and depreciation, but a substantial increase in impairment losses on trade receivables Other Items Details | Item | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Cost of inventories | 196,967 | 463,472 | | (Reversal of write-down) / write-down of inventories | (49) | 484 | | Impairment losses on trade receivables | 10,109 | 5,245 | | Amortisation of prepaid lease payments | 540 | 995 | | Amortisation of intangible assets | 307 | – | | Depreciation of property, plant and equipment | 8,956 | 14,208 | [Income Tax (Expense) / Credit](index=12&type=section&id=6%20Income%20Tax%20(Expense)%20%2F%20Credit) Income tax shifted from a credit to an expense in the current period, mainly due to under-provision in prior years Income Tax (Expense) / Credit Details | Item | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Current tax credit - current year | – | – | | Under-provision / (over-provision) in prior years | 4 | (45) | | **Total income tax expense / (credit)** | **4** | **(45)** | [Loss Per Share](index=12&type=section&id=7%20Loss%20Per%20Share) Basic and diluted loss per share remained flat compared to the same period last year, as the company has no potential ordinary shares Loss Per Share Data | Indicator | Six Months Ended June 30, 2025 (HKD) | Six Months Ended June 30, 2024 (HKD) | | :--- | :--- | :--- | | Basic loss per share | (0.006) | (0.006) | | Diluted loss per share | (0.006) | (0.006) | [Basic Loss Per Share](index=12&type=section&id=7(a)%20Basic%20Loss%20Per%20Share) Basic loss per share is calculated based on the loss attributable to owners of the Company and the weighted average number of ordinary shares, amounting to HKD 0.006 in the current period - Basic loss per share is calculated based on the loss attributable to owners of the Company of **HKD 10,803,000** and the weighted average number of ordinary shares of **1,822,756,000**[22](index=22&type=chunk) [Diluted Loss Per Share](index=12&type=section&id=7(b)%20Diluted%20Loss%20Per%20Share) Diluted loss per share is equal to basic loss per share as the company has no potential ordinary shares - Diluted loss per share is equal to basic loss per share as the company has no potential ordinary shares[23](index=23&type=chunk) [Income Tax Rules and Exemptions](index=12&type=section&id=Income%20Tax%20Rules%20and%20Exemptions) The Group is not subject to income tax in Bermuda and the British Virgin Islands, has no assessable profits in Hong Kong, and enterprises engaged in primary processing of agricultural products in mainland China are exempt from corporate income tax - The Group is not subject to any income tax in Bermuda and the British Virgin Islands, and has no assessable profits in Hong Kong[24](index=24&type=chunk) - Enterprises engaged in primary processing of agricultural products in mainland China are exempt from Chinese corporate income tax, and profits from slaughtering businesses are also exempt[24](index=24&type=chunk) [Property, Plant and Equipment](index=13&type=section&id=8.%20Property,%20Plant%20and%20Equipment) The recoverable amount of property, plant and equipment was assessed during the period, and no impairment loss was recognized - The Group assessed the recoverable amount of cash-generating units based on value in use, using management-approved five-year financial forecasts[25](index=25&type=chunk) - No impairment losses on property, plant and equipment and prepaid lease payments were recognized for the six months ended June 30, 2025 and 2024[25](index=25&type=chunk) [Trade and Other Receivables](index=13&type=section&id=9%20Trade%20and%20Other%20Receivables) As of June 30, 2025, net trade receivables slightly increased, but prepayments and other receivables grew significantly, leading to an increase in total receivables Trade and Other Receivables Details | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Gross trade receivables | 104,045 | 93,010 | +11.9% | | Less: Expected credit losses | (18,149) | (7,997) | +126.9% | | Trade receivables, net | 85,896 | 85,013 | +1.0% | | Deductible VAT | 55,439 | 61,468 | -9.8% | | Deposits and prepayments | 90,461 | 69,603 | +30.0% | | Other receivables | 104,981 | 70,665 | +48.6% | | **Total** | **336,777** | **286,749** | **+17.4%** | [Trade and Other Payables](index=14&type=section&id=10%20Trade%20and%20Other%20Payables) As of June 30, 2025, total trade payables decreased, but accrued interest and other payables significantly increased, leading to a slight rise in total payables Trade and Other Payables Details | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Gross trade payables | 92,386 | 113,855 | -18.8% | | Customer deposits | 18,670 | 20,322 | -8.1% | | Contract liabilities | 17,465 | 19,465 | -10.3% | | Accrued salaries and welfare | 3,326 | 10,414 | -68.1% | | VAT payable | 67,752 | 64,229 | +5.5% | | Payables for acquisition of property, plant and equipment | 27,647 | 27,229 | +1.5% | | Provision for litigation losses | 64,271 | 63,299 | +1.5% | | Accrued interest | 271,858 | 250,721 | +8.4% | | Other payables and accrued expenses | 348,815 | 338,489 | +3.1% | | **Total** | **912,190** | **908,023** | **+0.5%** | [Dividends](index=14&type=section&id=11%20Dividends) The Board of Directors does not recommend the declaration of an interim dividend for the six months ended June 30, 2025 and 2024 - The Directors do not recommend the declaration of an interim dividend for the six months ended June 30, 2025 and 2024[28](index=28&type=chunk) [Contingent Liabilities](index=14&type=section&id=12%20Contingent%20Liabilities) Aside from the bank litigation disclosed in Note 5(a), the Group has no other significant pending or threatened litigation or claims - Aside from the bank litigation disclosed in Note 5(a), the Group is not involved in any other significant litigation or arbitration[29](index=29&type=chunk) - Management believes that non-material litigation arising from ordinary business will not have any significant impact on the Group's financial position and results[29](index=29&type=chunk) Management Discussion and Analysis [Macroeconomic and Industry Review](index=15&type=section&id=Macroeconomic%20and%20Industry%20Review) In the first half of 2025, China's economy continued its recovery and improvement, with GDP growing by 5.3% year-on-year, but insufficient consumer willingness led to a 0.1% year-on-year decline in CPI; the hog farming industry faced downward pressure on pork prices, and pork consumption is expected to decline long-term, prompting industry transformation and upgrading - In the first half of 2025, China's GDP grew by **5.3%** year-on-year, but insufficient consumer willingness led to a **0.1%** year-on-year decline in CPI[31](index=31&type=chunk) - The hog farming industry faced significant downward pressure on pork prices, with hog slaughter volume increasing by **0.6%** year-on-year, and pork production and sales are expected to decline long-term, necessitating industry transformation and upgrading[31](index=31&type=chunk) [Business Review](index=15&type=section&id=Business%20Review) In the first half of the year, the Group focused on "Harbin Meat Union" series products, but overall revenue decreased by approximately 52.6% year-on-year due to falling hog prices, a strategic reduction in production at low-profit slaughterhouses, and the expiration of leases for some processed meat product factories - The Group focused on downstream "Harbin Meat Union" series products, adhering to traditional craftsmanship while exploring innovation[32](index=32&type=chunk) - Hog slaughter volume increased, market supply was abundant, and insufficient consumer demand led to a **2.2%** year-on-year decrease in hog prices[32](index=32&type=chunk) - The Group strategically reduced production at low-profit slaughterhouses and experienced the expiration of leases for some processed meat product factories, resulting in an overall revenue decrease of approximately **52.6%** year-on-year[34](index=34&type=chunk) [Product Quality and Research & Development](index=16&type=section&id=Product%20Quality%20and%20Research%20%26%20Development) The Group adheres to the "quality first" principle, strictly controlling every aspect from raw material procurement to sales, ensuring product quality stability and safety - The Group consistently adheres to the "quality first" principle, strictly controlling every aspect from raw material procurement to sales[33](index=33&type=chunk) - Ensuring product quality stability and consistency to provide consumers with high-quality, safe, and reliable food[33](index=33&type=chunk) [Sales and Distribution](index=16&type=section&id=Sales%20and%20Distribution) Chilled meat and low-temperature processed meat products are the main sources of income; chilled meat sales decreased by 80.1% year-on-year, while low-temperature processed meat product sales increased by 20.7% year-on-year, significantly increasing their proportion of total revenue Sales and Distribution Key Data | Product Category | H1 2025 Sales (HKD) | H1 2024 Sales (HKD) | Y-o-Y Change | % of Total Revenue (2025) | % of Total Revenue (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | | Chilled meat | HKD 54 million | HKD 270 million | -80.1% | 21% | 50% | | Low-temperature processed meat products | HKD 185 million | HKD 154 million | +20.7% | 73% | 28% | [Production Facilities and Capacity](index=16&type=section&id=Production%20Facilities%20and%20Capacity) As of June 30, 2025, the Group's annual production capacity for upstream slaughtering and downstream processed meat products remained consistent with December 31, 2024 - The Group's annual production capacity for upstream slaughtering and downstream processed meat products is approximately **2.35 million heads** and **20,000 tons** respectively, consistent with December 31, 2024[35](index=35&type=chunk) [Financial Review and Key Performance Indicators](index=16&type=section&id=Financial%20Review%20and%20Key%20Performance%20Indicators) The Group's revenue significantly decreased in the first half of the year, but by focusing on higher-margin downstream businesses, the overall gross profit margin improved; however, the loss attributable to owners of the Company still expanded Financial Review and Key Performance Indicators Overview | Indicator | H1 2025 (HKD) | H1 2024 (HKD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | HKD 255 million | HKD 539 million | -52.6% | | Loss attributable to owners | HKD 11 million | HKD 10 million | +10.0% | | Basic and diluted loss per share | HKD 0.006 | HKD 0.006 | 0% | [Revenue](index=17&type=section&id=Revenue) The Group's overall revenue decreased by approximately 52.6% year-on-year, primarily due to a significant decline in upstream business sales revenue, while downstream processed meat product business revenue also decreased - The Group's overall revenue decreased by approximately **52.6%** year-on-year[34](index=34&type=chunk)[36](index=36&type=chunk) [Chilled and Frozen Meat](index=17&type=section&id=Chilled%20and%20Frozen%20Meat) Overall sales revenue from upstream business significantly decreased by 77.7%, with chilled meat sales decreasing by 80.1% and frozen meat sales decreasing by 61.9% Chilled and Frozen Meat Sales Data | Product Category | H1 2025 Sales (HKD) | H1 2024 Sales (HKD) | Y-o-Y Change | % of Upstream Total Revenue (2025) | % of Upstream Total Revenue (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | | Upstream business total sales revenue | HKD 70 million | HKD 312 million | -77.7% | - | - | | Chilled meat | HKD 54 million | HKD 270 million | -80.1% | 77% | 86% | | Frozen meat | HKD 16 million | HKD 42 million | -61.9% | 23% | 14% | [Processed Meat Products](index=17&type=section&id=Processed%20Meat%20Products) Sales of processed meat products decreased by 18.1% year-on-year, with low-temperature processed meat product revenue increasing by 20.7%, but high-temperature processed meat products having no revenue due to lease expiration Processed Meat Products Sales Data | Product Category | H1 2025 Sales (HKD) | H1 2024 Sales (HKD) | Y-o-Y Change | % of Total Revenue (2025) | % of Total Revenue (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | | Processed meat products total sales | HKD 185 million | HKD 227 million | -18.1% | - | - | | Low-temperature processed meat products | HKD 185 million | HKD 154 million | +20.7% | 73% | 28% | | High-temperature processed meat products | None | HKD 73 million | -100% | 0% | - | [Gross Profit and Gross Profit Margin](index=17&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) The Group's overall gross profit decreased by 22.7% year-on-year, but by focusing on high-margin downstream businesses, the overall gross profit margin increased from 14.0% to 22.9%; upstream business gross profit margin slightly increased, while downstream business gross profit margin decreased due to increased raw material costs Gross Profit and Gross Profit Margin Data | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Overall gross profit (HKD) | HKD 58 million | HKD 76 million | -22.7% | | Overall gross profit margin | 22.9% | 14.0% | +8.9 percentage points | | Upstream overall gross profit margin | 1.5% | 1.4% | +0.1 percentage points | | Chilled meat gross profit margin | 2.5% | 2.2% | +0.3 percentage points | | Frozen meat gross profit margin | -2.2% | -3.6% | +1.4 percentage points | | Downstream overall gross profit margin | 30.9% | 31.4% | -0.5 percentage points | | Low-temperature processed meat products gross profit margin | 30.9% | 37.2% | -6.3 percentage points | [Other Net Losses / Income](index=18&type=section&id=Other%20Net%20Losses%20%2F%20Income) The Group shifted from net income to a net loss of approximately HKD 2.2 million during the review period Other Net Losses / Income Data | Indicator | H1 2025 (HKD) | H1 2024 (HKD) | | :--- | :--- | :--- | | Other net losses / income | (HKD 2.2 million) | HKD 1.8 million | [Operating Expenses](index=18&type=section&id=Operating%20Expenses) Operating expenses decreased by 20.1% year-on-year, primarily due to lower direct costs resulting from reduced sales volume, but their proportion of revenue increased Operating Expenses Data | Indicator | H1 2025 (HKD) | H1 2024 (HKD) | Y-o-Y Change | % of Revenue (2025) | % of Revenue (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | | Operating expenses | HKD 52 million | HKD 66 million | -20.1% | 20.5% | 12.2% | [Operating Results](index=18&type=section&id=Operating%20Results) The Group's operating profit significantly decreased by 66.7% year-on-year Operating Results Data | Indicator | H1 2025 (HKD) | H1 2024 (HKD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Operating profit | HKD 4 million | HKD 12 million | -66.7% | [Net Finance Costs](index=18&type=section&id=Net%20Finance%20Costs) Net finance costs decreased by 23.7% year-on-year, primarily due to a lower interest rate on a bank borrowing and no longer accruing overdue interest and penalties Net Finance Costs Data | Indicator | H1 2025 (HKD) | H1 2024 (HKD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Net finance costs | HKD 19 million | HKD 25 million | -23.7% | - The decrease in net finance costs was primarily due to a lower interest rate on a bank borrowing under a new agreement, and no longer needing to accrue overdue interest and penalties[43](index=43&type=chunk) [Income Tax](index=18&type=section&id=Income%20Tax) Income tax shifted from a credit to an expense during the review period Income Tax Data | Indicator | H1 2025 (HKD) | H1 2024 (HKD) | | :--- | :--- | :--- | | Income tax expense / (credit) | HKD 4 thousand | (HKD 50 thousand) | [Loss Attributable to Owners of the Company](index=18&type=section&id=Loss%20Attributable%20to%20Owners%20of%20the%20Company) Loss attributable to owners of the Company expanded by 10% year-on-year Loss Attributable to Owners of the Company Data | Indicator | H1 2025 (HKD) | H1 2024 (HKD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Loss attributable to owners of the Company | HKD 11 million | HKD 10 million | +10.0% | [Financial Resources and Liabilities](index=18&type=section&id=Financial%20Resources) The Group's cash and cash equivalents significantly decreased, and outstanding bank borrowings slightly declined but still faced substantial overdue borrowings and default issues; despite a net liability position, the Board believes non-current assets can provide support and is confident in future financial improvement - The Group's cash and cash equivalents decreased by approximately **HKD 20 million** to **HKD 21 million**[46](index=46&type=chunk) - Outstanding bank borrowings amounted to **HKD 438 million**, of which **HKD 376 million** are due within one year[46](index=46&type=chunk) - Despite recording a net liability position, the Group holds approximately **HKD 235 million** in non-current assets, which the Board believes does not pose a significant impact on going concern[54](index=54&type=chunk) [Financial Resources](index=18&type=section&id=Financial%20Resources) As of June 30, 2025, cash and cash equivalents significantly decreased, outstanding bank borrowings slightly declined, and all borrowings were denominated in RMB Financial Resources Key Data | Indicator | June 30, 2025 (HKD) | December 31, 2024 (HKD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | HKD 21 million | HKD 41 million | -48.8% | | Outstanding bank borrowings | HKD 438 million | HKD 444 million | -1.4% | | Fixed-rate debt ratio | 95% | 94% | +1 percentage point | - Net cash outflow during the review period was primarily used for repayment of bank borrowings and operating activities[48](index=48&type=chunk) - Capital expenditure was approximately **HKD 1.3 million**, a significant decrease compared to the same period last year[49](index=49&type=chunk) [Breach of Loan Covenants](index=19&type=section&id=Breach%20of%20Loan%20Covenants) The Group failed to meet covenants for HKD 349 million in bank borrowings, which, along with accrued interest, are overdue and have been included in a consolidated restructuring plan; the company is actively communicating with banks to seek extensions, renewals, or revised terms, and banks have indicated no intention to take extreme measures - As of June 30, 2025, the Group failed to meet certain loan covenants for bank borrowings of **HKD 349 million**, which, along with accrued interest of **HKD 272 million**, are overdue[50](index=50&type=chunk) - The overdue bank borrowings have been included in a consolidated restructuring plan, but relevant legal procedures will not be automatically lifted if banks do not convert the debt into equity in the new platform[51](index=51&type=chunk) - The Group is actively communicating with state-owned commercial banks to discuss extensions, renewals, and/or revisions of loan terms, and the banks have indicated no intention to take extreme measures[53](index=53&type=chunk) [Assets and Liabilities](index=20&type=section&id=Assets%20and%20Liabilities) The Group's total assets and total liabilities both slightly decreased, but net current liabilities and net liabilities both expanded, indicating increased financial leverage pressure Assets and Liabilities Key Data | Indicator | June 30, 2025 (HKD) | December 31, 2024 (HKD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Total assets | HKD 621 million | HKD 645 million | -3.7% | | Total liabilities | HKD 1.351 billion | HKD 1.353 billion | -0.1% | | Property, plant and equipment | HKD 195 million | HKD 199 million | -2.0% | | Net current liabilities | HKD 902 million | HKD 872 million | +3.4% | | Net liabilities | HKD 729 million | HKD 708 million | +3.0% | - The Board assessed that despite the net liability position, the Group holds approximately **HKD 235 million** in non-current assets, which can support daily production and operations[54](index=54&type=chunk) [Pledge of Assets](index=21&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, approximately HKD 12 million of the Group's trade receivables were pledged to secure approximately HKD 23 million in bank borrowings Pledge of Assets Data | Indicator | June 30, 2025 (HKD) | December 31, 2024 (HKD) | | :--- | :--- | :--- | | Pledged trade receivables | HKD 12 million | HKD 17 million | | Secured bank borrowings | HKD 23 million | HKD 27 million | [Material Investments, Acquisitions and Disposals of Subsidiaries and Associates, and Plans for Future Material Investments or Capital Asset Purchases](index=21&type=section&id=Material%20Investments,%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%20and%20Associates,%20and%20Plans%20for%20Future%20Material%20Investments%20or%20Capital%20Asset%20Purchases) During the review period, the Group had no material investments or significant acquisitions and disposals of subsidiaries, nor any plans for future material investments or capital asset purchases - The Group held no other material investments or significant acquisitions and disposals of subsidiaries during the review period[58](index=58&type=chunk) - As of the date of this announcement, the Group also has no plans for any material investments or capital asset purchases[58](index=58&type=chunk) [Contingent Liabilities](index=21&type=section&id=Contingent%20Liabilities) A bank in mainland China initiated litigation against a subsidiary of the Group, demanding immediate repayment of approximately HKD 349 million in bank borrowings, which the Group is negotiating to resolve - A bank in mainland China initiated litigation against a subsidiary of the Group, demanding immediate repayment of approximately **HKD 349 million** in bank borrowings[59](index=59&type=chunk) - The Group is negotiating with the bank to resolve these litigations, and there are no other significant contingent liabilities[59](index=59&type=chunk) [Risk Management](index=21&type=section&id=Foreign%20Exchange%20Fluctuation%20Risk%20and%20Related%20Hedging) The Group's business is primarily settled in RMB, and it continuously monitors foreign exchange risk to ensure it remains within a controllable range - The Group's business is primarily settled in RMB, which is currently still subject to foreign exchange controls[60](index=60&type=chunk) - The Group continuously monitors its foreign exchange risk, considering exchange rate fluctuation trends and cash flow needs, to ensure related risks remain within a controllable range[60](index=60&type=chunk) [Human Resources](index=22&type=section&id=Human%20Resources) As of June 30, 2025, the Group's total number of employees decreased to approximately 600, and total staff costs decreased year-on-year but increased as a proportion of revenue; the company adheres to a people-oriented philosophy, providing competitive compensation, benefits, and training and promotion mechanisms Human Resources Key Data | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total number of employees | Approx. 600 | Approx. 1,000 | | Total staff costs (HKD) | HKD 26 million | HKD 35 million (H1 2024) | | Staff costs as % of revenue | 10.1% | 6.4% (H1 2024) | - The company adheres to a people-oriented philosophy, strictly safeguarding employees' legitimate rights and interests, and providing competitive salaries, performance bonuses, retirement plans, and other benefits[61](index=61&type=chunk) - Continuously optimizing employee training programs and establishing fair promotion mechanisms to stimulate employee enthusiasm and creativity[61](index=61&type=chunk) [Environmental Protection and Performance](index=22&type=section&id=Environmental%20Protection%20and%20Performance) The Group places sustainable development at its core, actively fulfilling corporate social responsibility, integrating green and low-carbon concepts into corporate governance and business operations, and continuously optimizing energy structure, advocating green office and travel - The Group places sustainable development at the core of its development, actively fulfilling corporate social responsibility[62](index=62&type=chunk) - Integrating green and low-carbon concepts into corporate governance and business operations, optimizing energy structure, and improving energy utilization efficiency[62](index=62&type=chunk) - Continuously deepening the green office concept, advocating green travel, and will comprehensively promote the enterprise's transformation towards low-carbon and green operations in the future[62](index=62&type=chunk) Corporate Governance [Corporate Governance Principles and Structure](index=23&type=section&id=Corporate%20Governance%20Principles%20and%20Structure) The company adheres to principles of integrity, transparency, openness, and efficiency in corporate governance, adopting a sound governance structure and measures, overseeing company operations through the Board of Directors and its committees (Audit, Remuneration, Nomination), and establishing risk management and internal control systems - The company adheres to principles of integrity, transparency, openness, and efficiency in corporate governance, striving to achieve high standards of corporate governance[63](index=63&type=chunk) - The Board of Directors consists of five directors and has an Audit Committee, Remuneration Committee, and Nomination Committee, with clearly defined terms of reference[63](index=63&type=chunk) - A risk management and internal control system has been established and its effectiveness is reviewed by the Audit Committee with the assistance of the internal audit department[63](index=63&type=chunk) [Roles of Chairman and Chief Executive Officer](index=24&type=section&id=Roles%20of%20Chairman%20and%20Chief%20Executive%20Officer) Ms. Zhu Yuan serves as both the Chairman of the Board and Chief Executive Officer, which does not comply with Code Provision C.2.1 of the Corporate Governance Code; the Board believes this arrangement facilitates efficient formulation and execution of business strategies and plans to identify a suitable Chief Executive Officer in the long term - Ms. Zhu Yuan serves as both the Chairman of the Board and Chief Executive Officer of the company, which does not comply with Code Provision C.2.1 of the Corporate Governance Code[65](index=65&type=chunk) - The Board believes this arrangement facilitates more effective and efficient formulation of business strategies and execution of business plans, benefiting the Group's business prospects and management[65](index=65&type=chunk) - The composition of the Board ensures a balance of power, and a suitable Chief Executive Officer will be identified and appointed in the long term[65](index=65&type=chunk) [Standard Code for Securities Transactions by Directors](index=24&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The company has adopted Appendix C3 "Standard Code" of the Listing Rules and confirms that all Directors have complied with the code during the review period - The company has adopted Appendix C3 "Standard Code" of the Listing Rules as the code of conduct for Directors' dealings in company securities[66](index=66&type=chunk) - The company confirms that all Directors have complied with the requirements of the Standard Code during the review period[66](index=66&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=24&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) During the review period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the review period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[67](index=67&type=chunk) [Audit Committee](index=24&type=section&id=Audit%20Committee) The Audit Committee has reviewed the Group's accounting principles, practices, internal controls, risk management, and financial reporting matters with management, including the unaudited interim results for the current period - The Audit Committee has reviewed the Group's accounting principles and practices with management, and discussed internal controls, risk management, and financial reporting matters[68](index=68&type=chunk) - The review included the Group's unaudited interim results for the review period[68](index=68&type=chunk) Post-Reporting Events and Publication [Significant Events Affecting the Group After the Reporting Period](index=24&type=section&id=Significant%20Events%20Affecting%20the%20Group%20After%20the%20Reporting%20Period) From June 30, 2025, up to the date of this announcement, there have been no significant events affecting the Group - From June 30, 2025, up to the date of this announcement, there have been no significant events affecting the Group[69](index=69&type=chunk) [Publication of Interim Results and Interim Report](index=25&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report) This announcement has been published on the HKEX and company websites, and the interim report will be dispatched to shareholders and published on the company and HKEX websites in due course - This announcement has been published on the website of The Stock Exchange of Hong Kong Limited and the company's website[70](index=70&type=chunk) - The company's 2025 interim report will be dispatched to the company's shareholders (if requested) and published on the company's and HKEX websites in due course[70](index=70&type=chunk)

Group 1 - The company, Yurun Food (01068.HK), will hold a board meeting on August 21, 2025, to approve the interim results announcement for the six months ending June 30, 2025, and to consider the distribution of an interim dividend, if any [1] - For the year 2024, the company reported a loss attributable to equity holders of HKD 38.573 million [1]

香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 告 的 內 容 概 不 負 責 ， 對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明 ， 並 明 確 表 示 概 不 就 因 本 公 告 全 部 或任 何部份內容而產 生或因依賴該等內容 而引致之任何損失承 擔任何責任。 於 本 公 告 日 ， 本 公 司 之 執 行 董 事 為 祝 媛 及 楊 林 偉 ； 獨 立 非 執 行 董 事 為 高 輝 、 陳 建國及徐幸蓮。 中國雨潤食品集團有限公司（「本公司」）董事會（「 董事 會」）謹此 宣佈 ， 本公司將於二零二五年八月二十一日（星期四）舉行董事會會議，藉以（其 中包括）批准本公司及其附屬公司截至二零二五年六月三十日止六個月之中 期業績公告及其發佈，以及考慮派發中期股息（如 有）。 承董事會命 主席 祝媛 香港，二零二五年八月七日 CHINA YURUN FOOD GROUP LIMITED 中 國 雨 潤 食 品 集 團 有 限 公 司* （於百慕達註冊成立之有限公司） （股份代號： 1068） 董事會會議日期 * 僅 供 識 別 ...