致：香港交易及結算所有限公司 公司名稱: 金活醫藥集團有限公司 呈交日期: 2025年10月2日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01110 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | HKD | | 0.1 HKD | | 1,000,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | | | 本月底結存 | | | 10,000,000,000 | HKD | | 0.1 HKD | | 1,000,000,000 | 本月底法定/註冊股本總額： HKD 1,000,000,000 FF301 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: ...

2.在虚假平台填写个人信息，可能导致身份证号、银行卡号、联系方式等重要信息泄露，被不法分子用 于其他违法犯罪活动。 风险小贴士：陌生链接不点击，不明APP不下载！ 某银行理财经理接到刘先生来电，称自己在线上网络贷款时，因贷款卡号填写有误，导致资金未到账， 向银行询问情况。经沟通得知，刘先生此前收到某贷款营销短信，点击链接下载了软件，并在该平台上 申请了15000元贷款。在填写个人信息、上传资料后，该平台客服通知其贷款卡号填写错误，资金被冻 结。随后，平台客服引导刘先生下载了另一款软件，以刘先生存在骗贷可能为由，要求刘先生向贷款银 行卡存入贷款金额的50%用于认证，认证成功后将全额返还并放款。银行工作人员发现该网贷平台网址 未正规备案、客服引导下载其他APP、资金冻结理由牵强等诸多疑点，判断刘先生可能遭遇电信网络诈 骗，对其进行劝阻，并联系反诈民警。最终，经过民警和银行工作人员耐心劝说，刘先生识破骗局，避 免了资金损失。 广发银行南京分行提醒您： 1.以卡号错误、资金冻结等理由，要求缴纳保证金、认证金、解冻金等，一旦转账，资金将有去无回。 ...

广发银行南京分行提醒您： 1.遇到不明来源要求提供个人信息的，不要轻易回复，应通过官方渠道核实情况，切实保护好个人信息 安全 王女士前些日子办理了退休手续，刚刚赋闲在家开启了安逸生活。某天在小区内看到一则广告，某平台 推出了新的活动，只要扫码注册就可以免费领取高档礼品。王女士非常心动，便立即扫码注册，没想到 竟然抽中了888元现金大礼包！便立即按页面要求填写了自己的银行卡号、姓名、手机号、验证码、家 庭住址等多项个人信息，静待奖金到账。回到家后，王女士还沉浸在意外中奖的喜悦中，却不料收到了 多条消费短信。打开短信一看，发现银行短信提示自己有多条异地消费的记录，合计金额高达3000多 元。王女士慌了神，赶紧来到银行柜面查询，才发现自己的个人信息被泄露，卡内资金已经被盗刷了。 2.不贪图各类小便宜，不参与来路不明的扫码注册领奖品活动 风险小贴士：不轻易透露手机号、证件号、银行卡号等个人信息！ ...

Group 1 - The core viewpoint of the article emphasizes the importance of financial education and risk prevention to protect the public's financial security, particularly targeting vulnerable groups such as the elderly and small business owners [1][4]. Group 2 - The bank conducted community outreach specifically aimed at elderly clients, providing face-to-face education on identifying counterfeit currency and the process for handling it, while also addressing common scams targeting seniors [2]. - A financial knowledge salon was organized in collaboration with China Life Insurance, where bank staff and insurance agents discussed prevalent financial scams and provided practical advice to enhance participants' risk management skills [3]. Group 3 - In commercial areas, the bank engaged the public through interactive sessions on deposit insurance, addressing common concerns about the safety of savings and emphasizing that both personal and business deposits are protected [4]. - The series of outreach activities received positive feedback from community residents and business owners, with the bank planning to continue focusing on the needs of elderly clients and small enterprises while innovating its financial education approach [4].

[Company Information](index=3&type=section&id=Company%20Information) This section provides an overview of the company's governance structure, key personnel, contact details, and professional service providers [Board of Directors and Committees](index=3&type=section&id=Board%20of%20Directors%20and%20Committees) The Board comprises executive and independent non-executive directors, with changes in Audit, Remuneration, and Nomination Committee memberships during the reporting period - Board members include executive directors Zhao Lisheng (Chairman), Chen Leshen, Zhou Xuhua, and independent non-executive directors Duan Jidong, Huang Zhuolin, Zhang Jianbin (resigned), and Chu Xiaoping[8](index=8&type=chunk) - Mr. Zhang Jianbin resigned as an independent non-executive director, member of the Audit Committee, chairman of the Remuneration Committee, and member of the Nomination Committee on August 1, 2025[8](index=8&type=chunk)[197](index=197&type=chunk) - Dr. Chu Xiaoping was re-designated as Chairman of the Remuneration Committee on August 1, 2025[8](index=8&type=chunk) [Company Contact and Professional Services](index=3&type=section&id=Company%20Contact%20and%20Professional%20Services) This section details the company's secretarial and authorized representatives, registered and principal offices, main banks, and professional advisors - Mr. Chen Hanyun serves as Company Secretary, with Mr. Zhao Lisheng and Mr. Chen Hanyun as authorized representatives[8](index=8&type=chunk) - Key banks include China Construction Bank, Industrial Bank, and Nanyang Commercial Bank[9](index=9&type=chunk) - Crowe (HK) CPA Limited is the auditor[9](index=9&type=chunk) [Financial Highlights](index=5&type=section&id=Financial%20Highlights) This section presents a summary of the company's interim financial performance, liquidity, and capital structure [Overview of Interim Financial Performance](index=5&type=section&id=Overview%20of%20Interim%20Financial%20Performance) For the six months ended June 30, 2025, the company's revenue and gross profit declined, leading to a significant decrease in profit for the period and a loss attributable to owners For the Six Months Ended June 30, 2025 Financial Highlights | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Percentage Change | | :--- | :--- | :--- | :--- | | Revenue | 404,850 | 526,088 | (23.0)% | | Cost of Sales | (302,807) | (388,828) | (22.1)% | | Gross Profit | 102,043 | 137,260 | (25.7)% | | Gross Profit Margin | 25.2% | 26.1% | (0.9) percentage points | | Profit for the Period | 11,436 | 45,620 | (74.9)% | | (Loss)/Profit Attributable to Owners of the Company | (5,412) | 30,716 | Not Applicable | | Basic (Loss)/Earnings Per Share (RMB cents) | (0.94) | 5.20 | Not Applicable | | **Liquidity and Gearing** | | | | | Current Ratio | 1.14 | 1.18 | (3.4)% | | Quick Ratio | 0.92 | 0.95 | (3.2)% | | Gearing Ratio | 26.2% | 21.6% | 4.6 percentage points | [Management Discussion and Analysis](index=6&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an in-depth review of the company's market and industry, business segments, R&D, talent, sustainability, and financial performance [Market and Industry Review](index=6&type=section&id=Market%20and%20Industry%20Review) In H1 2025, Kingworld Medicines Group adapted to complex economic conditions, deepening supplier cooperation and planning for product line expansion and new project launches - In the first half of 2025, Kingworld Medicines Group flexibly adjusted its strategy and deepened national marketing cooperation with upstream suppliers, achieving steady development amidst complex economic conditions[15](index=15&type=chunk) - The second half will focus on exploring upstream cooperation potential, developing new dosages, specifications, and categories for existing products, and accelerating new cooperation projects to leverage terminal network advantages for rapid growth of newly introduced products[15](index=15&type=chunk) [Business Review](index=6&type=section&id=Business%20Review) The Group's business performance varied, with pharmaceutical sales declining, health products and daily chemicals gaining market influence, and medical devices achieving growth - The pharmaceutical distribution segment's sales were **RMB 266.2 million**, a year-on-year decrease of **25.3%**, mainly due to the decline in China's urban physical pharmacy market for proprietary Chinese medicines and rising raw material prices[16](index=16&type=chunk)[18](index=18&type=chunk) - **Seirogan** saw a year-on-year increase of **443.2%**, primarily benefiting from research findings that its main ingredient, creosote, inhibits Anisakis activity, indicating significant market potential[21](index=21&type=chunk) - **Fo Ci Kingworld Angong Niuhuang Wan** sales reached **RMB 1.5 million**, a year-on-year increase of **315.4%**, attributed to its high quality, cost-effectiveness, and inclusion in the "Chikungunya Fever Diagnosis and Treatment Plan"[27](index=27&type=chunk) - **Kingworld Imada Seihong Hua Oil** sales were **RMB 21.5 million**, a slight year-on-year decrease of **10.6%**, but its brand influence expanded through marathon sponsorships and mosquito repellent public welfare activities[23](index=23&type=chunk) - **Zhuangyao Jianshen Tablets** sales reached nearly **RMB 1.0 million**, having completed bidding for medical insurance listings in 13 provinces and cities nationwide and successfully developed distributors[30](index=30&type=chunk)[49](index=49&type=chunk) - The medical devices and equipment segment's sales were approximately **RMB 118.4 million**, a **4.0%** increase from last year, with the launch of the portable shockwave therapy device SW3200 Basic[77](index=77&type=chunk) [Key Review of Pharmaceutical Segment](index=6&type=section&id=Key%20Review%20of%20Pharmaceutical%20Segment) The pharmaceutical segment faced market challenges in H1 2025, with overall sales declining, but some key products achieved significant growth through strategic initiatives [Deepening Industrial Chain Cooperation, Consolidating Multi-channel Construction](index=11&type=section&id=Deepening%20Industrial%20Chain%20Cooperation,%20Consolidating%20Multi-channel%20Construction) The Group expanded its tier-one customer base and optimized its terminal network, while enhancing brand image and market penetration for key products through flagship stores and strategic partnerships - Tier-one customer count increased by **11.5%** to **204** in the first half, primarily driven by B2C business expansion[33](index=33&type=chunk) - The terminal network covers **182,677** outlets, including **151,589** chain and independent pharmacies, **20,414** primary healthcare institutions, and **10,655** hospitals and clinics[33](index=33&type=chunk) - The number of terminal outlets slightly decreased by **10%** compared to last year, mainly due to inventory control management and elimination of low-quality terminal networks[33](index=33&type=chunk) - **Seirogan** advanced its terminal flagship store construction plan in six major regions, covering **191** high-quality cooperative stores[34](index=34&type=chunk) - **Kingworld Imada Seihong Hua Oil** successfully established **400** flagship stores nationwide, enhancing brand image[34](index=34&type=chunk) [Strengthening Scenario-Based Interactive Marketing, Deeply Connecting with Consumer Emotions](index=12&type=section&id=Strengthening%20Scenario-Based%20Interactive%20Marketing,%20Deeply%20Connecting%20with%20Consumer%20Emotions) The Group implemented diverse scenario-based marketing strategies to foster emotional connections with consumers and enhance brand presence - **Nin Jiom Pei Pa Koa** and lozenges utilized scenario-based marketing through bus, building, and Wanda Cinema New Year advertisements[38](index=38&type=chunk) - The "Good Lungs, Good Voice" music caravan national tour covered **4** routes and **48** cities, integrating the brand into leisure and entertainment scenarios[38](index=38&type=chunk) - **Seirogan** set up "Gaokao Guardian Stations" during the college entrance exam period, providing emergency medicines and expanding brand exposure through media联动[41](index=41&type=chunk) - **Kingworld Imada Seihong Hua Oil** sponsored the 20th Asian Marathon Championships and the 2025 Jiaxing Marathon and Jinggangshan Trail Race, offering pre-race warm-up and post-race massage services[43](index=43&type=chunk) [Consolidating Online Communication and Marketing Matrix, Building a Full-Channel Brand Communication Ecosystem](index=15&type=section&id=Consolidating%20Online%20Communication%20and%20Marketing%20Matrix,%20Building%20a%20Full-Channel%20Brand%20Communication%20Ecosystem) The Group strengthened its online brand strategy through TV and streaming platform advertising, while exploring new e-commerce models to integrate online and offline sales - Brand advertisements were placed on CCTV-8 and iQiyi's hit dramas "Fearless: Never Give Up" and "Lychees in Chang'an"[46](index=46&type=chunk) - Launched the "Kingworld Cloud Chain" project, piloting the Douyin local life service platform with the first batch of **60** stores to achieve efficient online-offline linkage[48](index=48&type=chunk) - Explored leveraging Douyin's traffic aggregation effect to create popular products and tested a new marketing closed-loop of "online content generating interest, offline stores achieving instant sales"[48](index=48&type=chunk) [Revitalizing Kingworld's Proprietary Brands, Accelerating New Product Introduction](index=16&type=section&id=Revitalizing%20Kingworld's%20Proprietary%20Brands,%20Accelerating%20New%20Product%20Introduction) The Group is actively incubating proprietary brands and introducing new products through strategic collaborations to expand its market presence - **Kingworld Zhuangyao Jianshen Tablets** sales reached nearly **RMB 1.0 million**, becoming a strong product in the Group's pharmaceutical portfolio[49](index=49&type=chunk) - **Kingworld American Ginseng Capsules** gift boxes have seen increased market penetration and sales since their launch in April 2025[49](index=49&type=chunk) - Collaborated with Shang Ya Ju to cultivate Calculus Bovis slices and advanced national marketing cooperation with Qihuang Pharmaceutical for Cistanche Tubulosa Laxative Oral Liquid, an exclusive patented product expected to launch in the second half[51](index=51&type=chunk) [Key Review of Health Products and Daily Chemicals Segment](index=17&type=section&id=Key%20Review%20of%20Health%20Products%20and%20Daily%20Chemicals%20Segment) The health products and daily chemicals segment, as the Group's second-largest business, steadily increased market influence through online-offline synergy and new product introductions - Health products and daily chemicals is the Group's second-largest business segment, with **INNOPHARM** ranking fourth in overseas tonic brands on JD.com International, up one spot[54](index=54&type=chunk) - **INNOPHARM Fish Oil** published **77** product sharing notes on Xiaohongshu, accumulating over **7.6 million** exposures and **460,000** reads, successfully driving Xiaohongshu traffic to Tmall for conversion[56](index=56&type=chunk) - **Carmex Lip Balm** focused on the "lip primer" scenario, precisely targeting the 18-25 age group, achieving a **24%** year-on-year sales growth[59](index=59&type=chunk) - **Golden Partner Glucosamine Chondroitin Calcium Capsules** were deeply integrated with the Kingworld Red Flower Oil product line, creating a "topical pain relief + oral nourishment" scenario-based solution[61](index=61&type=chunk) - Introduced new products such as **German Horse Balm** and **Irish Probiotics**, and expanded into new channels including Hong Kong Yuhua Chain and HKTVMALL[65](index=65&type=chunk)[68](index=68&type=chunk) [High-Density Penetration into Emerging Communities, Connecting the Entire 'Seeding-to-Conversion' Chain](index=18&type=section&id=High-Density%20Penetration%20into%20Emerging%20Communities,%20Connecting%20the%20Entire%20'Seeding-to-Conversion'%20Chain) The Group achieved significant online exposure and sales conversion for its health products through targeted content marketing and e-commerce strategies - **INNOPHARM Fish Oil** collaborated with multi-domain professionals on Xiaohongshu, publishing **77** product sharing notes that garnered over **7.6 million** exposures and **460,000** reads[56](index=56&type=chunk) - The brand's official account continuously published **170**科普 content pieces, with over **30,000** reads, successfully diverting Xiaohongshu traffic to Tmall for conversion[56](index=56&type=chunk) - **Carmex Lip Balm** focused on the "lip primer" core scenario, precisely targeting the 18-25 age group, achieving a **24%** year-on-year sales growth[59](index=59&type=chunk) [Scenario Strategy Upgraded Again, Synergistic Product Dual-Core Driven](index=19&type=section&id=Scenario%20Strategy%20Upgraded%20Again,%20Synergistic%20Product%20Dual-Core%20Driven) The Group enhanced its scenario-based marketing for health products through sports sponsorships, innovative offline services, and product bundling strategies - **INNOPHARM Fish Oil** sponsored the Jiaxing Marathon Expo and the 2025 Jinggangshan Trail Race, achieving multi-dimensional brand exposure[60](index=60&type=chunk) - Innovated a "professional consultant" offline service model, providing scientific purchasing guidance through face-to-face communication with consumers by professional teams[60](index=60&type=chunk) - **Golden Partner Glucosamine Chondroitin Calcium Capsules** were deeply integrated with the Kingworld Red Flower Oil product line, creating a "topical pain relief + oral nourishment" scenario-based solution to drive associated sales of both products[61](index=61&type=chunk) [Enriching Product Portfolio, Continuously Developing New Channels for Leverage Communication](index=20&type=section&id=Enriching%20Product%20Portfolio,%20Continuously%20Developing%20New%20Channels%20for%20Leverage%20Communication) The Group is expanding its product offerings and distribution channels, including new R&D projects and international product introductions, supported by digital marketing - Steadily advancing the joint R&D project with Hong Kong University of Science and Technology on **Cistanche Probiotics**, expected to launch this year, targeting workplace sub-health and the elderly population[64](index=64&type=chunk) - Introduced new products from overseas to Hong Kong, such as **German Horse Balm** and **Irish Probiotics**, enriching the product portfolio[65](index=65&type=chunk) - Expanded into new channels including Hong Kong Yuhua Chain, Hong Kong Hospital Authority Staff Online Shopping Platform "Lok Hip", HKTVMALL, and Lion Life platform live streaming, and developed Kingworld's overseas independent website[68](index=68&type=chunk) - **INNOPHARM** collaborated with renowned artist Wong Cheung Hing and Facebook influencers for over **30** live streams, while Horse Balm and Probiotics also partnered with Christine Ng for live streams[70](index=70&type=chunk) [Partnering with Top European Pharmaceutical Manufacturers to Empower Product Matrix Upgrade](index=22&type=section&id=Partnering%20with%20Top%20European%20Pharmaceutical%20Manufacturers%20to%20Empower%20Product%20Matrix%20Upgrade) The Group is pursuing strategic cooperation with a leading European herbal therapy manufacturer to enhance its product matrix with international pharmaceutical-grade standards - Actively negotiating strategic cooperation with a top European herbal therapy manufacturer that adheres to European Good Manufacturing Practice (GMP) standards[72](index=72&type=chunk) - The first batch of cooperative products will focus on core areas such as joint health, sleep improvement, and immunity enhancement, aiming to introduce international leading pharmaceutical-grade standards[72](index=72&type=chunk) [Collaborating with National Scientific Research Teams, Building Core Technological Barriers](index=22&type=section&id=Collaborating%20with%20National%20Scientific%20Research%20Teams,%20Building%20Core%20Technological%20Barriers) The Group plans to deepen collaboration with academic institutions to develop global health products based on Traditional Chinese Medicine, integrating R&D, production, and sales - Plans to deepen cooperation with a senior professor team from a university, focusing on key Traditional Chinese Medicinal materials, leveraging national scientific research achievements to jointly develop health products for the global market[73](index=73&type=chunk) - The cooperation aims to integrate the "R&D-production-sales" chain, accelerating the transformation, registration, and internationalization of scientific research results through Shenzhen-Hong Kong synergy, promoting the "going global" of Traditional Chinese Medicine standards[73](index=73&type=chunk) - Focuses on key technologies such as primary processing of authentic medicinal materials, active ingredient extraction, quality standards, and fresh product storage, developing a series of products with anti-aging, anti-fatigue, and other effects, including fresh herbal extracts, natural active ingredients, and probiotic-enhanced products[73](index=73&type=chunk) [Key Review of Medical Devices and Equipment Segment](index=23&type=section&id=Key%20Review%20of%20Medical%20Devices%20and%20Equipment%20Segment) Dongdixin Technology achieved sales growth and launched an innovative portable shockwave therapy device, while deepening its domestic and international market presence - **Dongdixin Technology** sales were approximately **RMB 118.4 million**, a **4.0%** increase from last year[77](index=77&type=chunk) - Launched the new portable shockwave therapy device **SW3200 Basic**, integrating electromagnetic drive, portable design, and multi-layer conductive flexible treatment heads[77](index=77&type=chunk) - The product debuted at the 91st CMEF exhibition in Shanghai, receiving positive market feedback and showing promising prospects[77](index=77&type=chunk) [Deepening Domestic and International Layout, Significant Achievements in Strategic Cooperation](index=24&type=section&id=Deepening%20Domestic%20and%20International%20Layout,%20Significant%20Achievements%20in%20Strategic%20Cooperation) The company effectively navigated international trade challenges, expanded into new emerging markets, and strengthened its domestic presence through product re-registration and strategic partnerships - Achieved significant results in the North American market, effectively mitigating the impact of external environmental changes on first-half sales performance[78](index=78&type=chunk) - Intensified efforts to explore emerging potential markets such as South America, South Africa, and Southeast Asia, actively participating in multiple international industry exhibitions[78](index=78&type=chunk) - Completed the medical device re-registration for the biofeedback therapy device product, obtaining a five-year registration certificate[81](index=81&type=chunk) - Strategic cooperation with Merson Technology deepened, with ultrasound therapy device products ranking among the top in sales on mainstream e-commerce platforms like JD.com and Tmall[81](index=81&type=chunk) [Strengthening Internal Control and Efficiency, Multi-pronged Approach to Unleash Profit Potential](index=25&type=section&id=Strengthening%20Internal%20Control%20and%20Efficiency,%20Multi-pronged%20Approach%20to%20Unleash%20Profit%20Potential) The company optimized its quality, after-sales, and risk control systems, while implementing cost reduction and efficiency improvement strategies to enhance profitability - Established or co-established localized after-sales service response networks in major sales markets with core distributors, enhancing the timeliness and efficiency of customer issue resolution[82](index=82&type=chunk) - Optimized organizational structure and talent management through measures such as merging and streamlining positions and strengthening incentives for key employees[82](index=82&type=chunk) - Implemented cost reduction and efficiency improvement strategies, including multi-dimensional comparative procurement, bidding systems for equipment, consumables, and raw materials, saving production energy consumption, and reducing administrative expenses, effectively improving product gross profit margins[82](index=82&type=chunk) [Continuously Advancing Digital Transformation, Industry-University-Research Collaboration Driving New Product Development](index=25&type=section&id=Continuously%20Advancing%20Digital%20Transformation,%20Industry-University-Research%20Collaboration%20Driving%20New%20Product%20Development) The company is enhancing its digital manufacturing systems and leveraging AI and academic partnerships to drive product innovation and operational efficiency - Continuously advancing the optimization and upgrade of digital intelligent manufacturing systems, deepening strategic cooperation with top domestic artificial intelligence research institutes[83](index=83&type=chunk) - Actively exploring the deep application of artificial intelligence technology in improving production efficiency and empowering product research and development[83](index=83&type=chunk) - Collaborating with renowned domestic rehabilitation hospitals and the Shenzhen Institute of Advanced Technology, Chinese Academy of Sciences, on in-depth technical research in the rehabilitation field, with innovative technologies and products expected to be launched within the year[83](index=83&type=chunk) [Other Businesses](index=26&type=section&id=Other%20Businesses) Kingworld Longde Health Industrial Park consolidated its health industry ecosystem and attracted new clients, while the Group actively pursued investment opportunities for sustainable growth - **Kingworld Longde Health Industrial Park** consolidated its health industry collaborative ecosystem through industrial cooperation and policy linkage amidst macroeconomic downward pressure[84](index=84&type=chunk) - The park hosted **25** batches of government departments and business associations for visits and exchanges, adding **72** prospective clients[84](index=84&type=chunk)[89](index=89&type=chunk) - The Group actively seized investment and financing opportunities in the big health industry, leveraging its listed company advantages to integrate internal and external resources and deepen collaborative cooperation with upstream and downstream enterprises in the industry chain[91](index=91&type=chunk) [Gathering Momentum and Empowerment, with Longde Industrial Park as the Hub, Connecting the Health Industry Collaborative Ecosystem](index=26&type=section&id=Gathering%20Momentum%20and%20Empowerment,%20with%20Longde%20Industrial%20Park%20as%20the%20Hub,%20Connecting%20the%20Health%20Industry%20Collaborative%20Ecosystem) Longde Industrial Park actively engaged with industry leaders and government, hosting events and securing new clients to enhance its brand and service capabilities - Longde Health Industrial Park hosted high-level exchanges with industry leaders such as Yangtze River Pharmaceutical Group and Ningbo Tianyi Medical Co., Ltd., exploring the Greater Bay Area market and international product布局[84](index=84&type=chunk) - Received platform resource support for health technology enterprises from Longgang District Government, hosting **25** batches of government departments and business associations for visits and exchanges in the first half[84](index=84&type=chunk) - Jointly organized multiple large-scale industry exchange events with various chambers of commerce and enterprises, such as the preparatory symposium for the "National Food and Medicine Homology Industry Innovation Project - Agarwood Special Project"[87](index=87&type=chunk) - The park added **72** prospective clients and identified key platform projects such as the "Food and Medicine Homology Agarwood Base"[89](index=89&type=chunk) [Actively Seizing Investment and Financing Opportunities in the Big Health Industry, Promoting Sustainable Business Growth](index=28&type=section&id=Actively%20Seizing%20Investment%20and%20Financing%20Opportunities%20in%20the%20Big%20Health%20Industry,%20Promoting%20Sustainable%20Business%20Growth) The Group is strategically leveraging its capital market position to integrate resources, optimize financing, and strengthen industry chain collaborations for future growth - Actively seizing development opportunities in the big health industry, promoting the Group's sustainable business development through strategic investments[91](index=91&type=chunk) - Leveraging its listed company capital market advantages, integrating internal and external resources, optimizing financing platforms, and deepening collaborative cooperation with upstream and downstream enterprises in the industry chain[91](index=91&type=chunk) - The investment department will continue to focus on high-potential projects and strengthen investment布局 to provide solid support for the Group's business growth and increased investment returns[91](index=91&type=chunk) [Research and Development and Innovation](index=28&type=section&id=Research%20and%20Development%20and%20Innovation) The Group has built a robust intellectual property system and achieved significant progress in digital transformation, expense control, CRM, and AI applications - The Group and its related brands have cumulatively registered over **300** valid trademarks, **83** software copyrights, and **1** invention patent[92](index=92&type=chunk) - **Dongdixin** cumulatively holds **4** valid invention patents, **24** utility model patents, **1** design patent, and **13** software copyrights[92](index=92&type=chunk) - The market activity management system was successfully launched, achieving digital optimization and upgrade of expense control management[93](index=93&type=chunk) - The new version of the customer visit management system 2.0 was officially launched, comprehensively optimizing geolocation accuracy and visit planning rationality[93](index=93&type=chunk) - Achieved AI-powered office operations by introducing public AI interfaces, significantly improving office efficiency, and enhanced marketing and promotional content using AI digital imaging technology[93](index=93&type=chunk) - In the second half of 2025, the microservice architecture middleware will be officially launched, and the flow management system will undergo iterative upgrades[95](index=95&type=chunk) [Talent and Culture](index=29&type=section&id=Talent%20and%20Culture) The Group maintains a people-oriented approach, with a comprehensive talent development system, strategic recruitment, and a share award scheme to motivate employees - The Group has established a comprehensive talent development system, training nearly a thousand people through multi-channel recruitment, school-enterprise cooperation, headhunter partnerships, and internal promotions[96](index=96&type=chunk) - Added positions such as management accountants, introducing professional talent to assist the company in more precise analysis of various operating costs and rational allocation of strategic resources[98](index=98&type=chunk) - As of June 30, 2025, the Group had a total of **759** employees, with **137** at the Shenzhen head office, **261** stationed in **36** other regions for sales and marketing, and **361** at Dongdixin[98](index=98&type=chunk)[159](index=159&type=chunk) - On July 4, 2025, under the 2025 Share Award Scheme, a total of **3,457,600** award shares were granted at nil consideration to **70** selected participants, aiming to recognize key talent contributions and motivate the team[100](index=100&type=chunk)[195](index=195&type=chunk) [Improving Talent Development Mechanisms, Supporting New Breakthroughs in Corporate Strategy](index=29&type=section&id=Improving%20Talent%20Development%20Mechanisms,%20Supporting%20New%20Breakthroughs%20in%20Corporate%20Strategy) The Group's people-oriented approach includes robust talent development, strategic recruitment for specialized roles, and a focus on employee career growth - The Group has established a comprehensive talent development system, training nearly a thousand people through multi-channel recruitment, school-enterprise cooperation, headhunter partnerships, and internal promotions[96](index=96&type=chunk) - Added positions such as management accountants, introducing professional talent to assist the company in more precise analysis of various operating costs and rational allocation of strategic resources[98](index=98&type=chunk) - As of June 30, 2025, the Group had a total of **759** employees, with **137** at the Shenzhen head office, **261** stationed in **36** other regions, and **361** at Dongdixin[98](index=98&type=chunk)[159](index=159&type=chunk) [Continuously Advancing Share Award Scheme, Stimulating Team Vitality and Corporate Growth Momentum](index=30&type=section&id=Continuously%20Advancing%20Share%20Award%20Scheme,%20Stimulating%20Team%20Vitality%20and%20Corporate%20Growth%20Momentum) The Group's performance management and incentive mechanisms, including a share award scheme, aim to boost employee engagement and drive corporate growth - The Group has established a comprehensive performance management system and incentive mechanism, fully stimulating employee work enthusiasm and creativity[100](index=100&type=chunk) - On July 4, 2025, under the 2025 Share Award Scheme, a total of **3,457,600** award shares were granted at nil consideration to **70** selected participants[100](index=100&type=chunk)[195](index=195&type=chunk) - Of these, **1,397,600** award shares were granted to **19** connected grantees, and **2,060,000** shares to **51** non-connected grantees[100](index=100&type=chunk)[195](index=195&type=chunk) [Sustainable Development](index=31&type=section&id=Sustainable%20Development) The Group actively fulfills its corporate social responsibility through significant donations, public welfare activities, and support for sports and education - The Group donated over **RMB 680,000** in cash and pharmaceutical supplies to the earthquake-stricken areas in Xizang Autonomous Region's Xigaze City[102](index=102&type=chunk) - Launched the "Jianfu Capsule Public Welfare Donation" activity, donating Jianfu Capsules worth nearly **RMB 3 million** to help improve women's health protection standards[102](index=102&type=chunk) - Its foundation received the "2024 Guangdong Province Poverty Alleviation and Charity Kapok Cup Bronze Award"[102](index=102&type=chunk) - Continuously launched the "Summer Retreat Large-scale Monk Protection Public Welfare Activity," donating pharmaceutical supplies to over seventy famous mountains and temples nationwide[104](index=104&type=chunk) - During the Gaokao period, "Love Aid Stations" were set up near examination centers in Guangzhou, and public welfare sun shelters were erected in Haikou, Hainan, and other locations, providing emergency supplies and services[107](index=107&type=chunk) [Awards and Recognition](index=33&type=section&id=Awards%20and%20Recognition) The Group received multiple corporate, product, and public welfare honors in 2024, recognizing its contributions and brand influence - Awarded "2024-2026 Nanshan District 'Green Channel' Enterprise" and "2024 Shenzhen Health Industry Product Technology, Service Model Innovation Case"[114](index=114&type=chunk) - **Kingworld Imada Seihong Hua Oil** received "Special Runner Tribe - Running Greater Bay Area Glorious Partner"[114](index=114&type=chunk) - **Fo Ci Minshan Xiaoyao Wan** received the "2024-2025 Most Popular Brand in Hong Kong Pharmacies Award"[114](index=114&type=chunk) - Awarded "2024 Guangdong Poverty Alleviation and Charity Kapok Award Bronze" and "2024 Outstanding Enterprise for Social Responsibility"[114](index=114&type=chunk) [Individual Honors of Group Leaders](index=34&type=section&id=Individual%20Honors%20of%20Group%20Leaders) Several Group leaders were recognized with individual honors for their contributions to social responsibility, cultural communication, and innovation - Executive Director Ms. Chen Leshen received "2024 Outstanding Individual for Social Responsibility" and Southern Media Group's "New Era Shenzhen Loves Her" 3.8 Women's Day Most Beautiful Her[117](index=117&type=chunk) - Assistant to the Chairman Mr. Zhao Jianwei received the "Shining Starfish" Cultural Communication Practice Award and was appointed Executive Director of the Shenzhen Federation of Industry and Commerce[117](index=117&type=chunk) - Assistant to the Chairman Ms. Zhao Weiying was recognized as an Active CPPCC Member of Luohu District, Shenzhen, and a "Shenzhen New Generation Innovation and Entrepreneurship Figure" in the 5th edition[117](index=117&type=chunk) [Financial Review](index=35&type=section&id=Financial%20Review) The Group's H1 2025 financial performance saw a significant decline in revenue and profit, primarily due to reduced pandemic-related boosts and increased administrative expenses 2025 H1 Financial Performance | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 404,850 | 526,088 | (23.0)% | | Cost of Sales | (302,807) | (388,828) | (22.1)% | | Gross Profit | 102,043 | 137,260 | (25.7)% | | Gross Profit Margin | 25.2% | 26.1% | (0.9) percentage points | | Other Income, Revenue and Other Losses, Net | 7,877 | 4,222 | 86.6% | | Selling and Distribution Costs | (43,592) | (48,565) | (10.2)% | | Administrative Expenses | (55,020) | (42,708) | 28.8% | | Operating Profit | 15,958 | 57,929 | (72.5)% | | Finance Costs | (8,085) | (9,316) | (13.2)% | | Profit Before Tax | 13,874 | 55,466 | (75.0)% | | Income Tax | (2,438) | (9,846) | (75.2)% | | Profit for the Period | 11,436 | 45,620 | (74.9)% | | (Loss)/Profit Attributable to Owners of the Company | (5,412) | 30,716 | Not Applicable | - As of June 30, 2025, cash and cash equivalents were **RMB 230,541 thousand**, indicating adequate liquidity[131](index=131&type=chunk) - The gearing ratio was **26.2%**, an increase from **21.6%** at the end of 2024[135](index=135&type=chunk) - There were no material acquisitions or disposals, nor any significant legal or potential proceedings during the reporting period[139](index=139&type=chunk)[142](index=142&type=chunk) [Revenue](index=35&type=section&id=Revenue) The Group's revenue decreased by 23.0% year-on-year, primarily due to reduced positive effects from the lifting of pandemic control measures on its distribution business - Revenue was approximately **RMB 404,850 thousand**, a **23.0%** decrease from the same period last year[120](index=120&type=chunk) - The decrease was mainly due to reduced positive effects from the lifting of pandemic control measures on the distribution business of branded imported pharmaceutical and health products in China[120](index=120&type=chunk) - This was partially offset by increased sales of medical equipment products manufactured by Dongdixin[120](index=120&type=chunk) [Cost of Sales and Gross Profit Margin](index=35&type=section&id=Cost%20of%20Sales%20and%20Gross%20Profit%20Margin) Cost of sales decreased by 22.1% due to lower sales volume, but gross profit margin declined by 0.9 percentage points due to a shift in product mix - Cost of sales was approximately **RMB 302,807 thousand**, a year-on-year decrease of **22.1%**[121](index=121&type=chunk) - Gross profit margin decreased from **26.1%** in the same period of 2024 to **25.2%** in the same period of 2025, a **0.9** percentage point decline[121](index=121&type=chunk) - The decline in gross profit margin was mainly due to a shift in the sales mix, leading to an increased revenue contribution from lower-margin products[121](index=121&type=chunk) [Other Income, Revenue and Other Losses, Net](index=35&type=section&id=Other%20Income,%20Revenue%20and%20Other%20Losses,%20Net) Other income, revenue and other losses, net, increased by 86.6%, primarily due to reduced fair value change losses on financial assets - Other income, revenue and other losses, net, amounted to approximately **RMB 7,877 thousand**, an **86.6%** year-on-year increase[122](index=122&type=chunk) - The increase was mainly due to a reduction in fair value change losses on financial assets at fair value through profit or loss during the reporting period[122](index=122&type=chunk) [Selling and Distribution Costs](index=35&type=section&id=Selling%20and%20Distribution%20Costs) Selling and distribution costs decreased by 10.2%, mainly due to lower promotion, transportation, and storage expenses resulting from reduced sales volume - Selling and distribution costs were approximately **RMB 43,592 thousand**, a year-on-year decrease of **10.2%**[123](index=123&type=chunk) - The decrease was mainly due to reduced promotion expenses, transportation, traffic, and storage costs resulting from lower sales volume during the reporting period[123](index=123&type=chunk) [Administrative Expenses](index=35&type=section&id=Administrative%20Expenses) Administrative expenses increased by 28.8%, primarily driven by higher depreciation and research and development expenses during the reporting period - Administrative expenses were approximately **RMB 55,020 thousand**, a year-on-year increase of **28.8%**[124](index=124&type=chunk) - The increase was mainly due to higher depreciation and research and development expenses during the reporting period[124](index=124&type=chunk) [Operating Profit](index=35&type=section&id=Operating%20Profit) Operating profit decreased by 72.5%, primarily due to reduced gross profit and increased administrative expenses, partially offset by lower selling and distribution costs - Operating profit was approximately **RMB 15,958 thousand**, a year-on-year decrease of **72.5%**[125](index=125&type=chunk) - The decrease in operating profit was mainly attributable to a reduction in gross profit of approximately **RMB 35,217 thousand** and an increase in administrative expenses, partially offset by a decrease in selling and distribution costs[125](index=125&type=chunk) [Finance Costs](index=36&type=section&id=Finance%20Costs) Finance costs decreased by 13.2%, mainly due to a reduction in bank loan interest resulting from lower average bank loan interest rates - Finance costs were approximately **RMB 8,085 thousand**, a year-on-year decrease of **13.2%**[126](index=126&type=chunk) - The decrease was mainly due to a reduction in bank loan interest resulting from lower average bank loan interest rates during the reporting period[126](index=126&type=chunk) [Profit Before Tax](index=36&type=section&id=Profit%20Before%20Tax) Profit before tax decreased by 75.0%, primarily attributable to the reduction in operating profit - Profit before tax was approximately **RMB 13,874 thousand**, a year-on-year decrease of **75.0%**[127](index=127&type=chunk) - The decrease in profit before tax was mainly attributable to the reduction in operating profit[127](index=127&type=chunk) [Income Tax](index=36&type=section&id=Income%20Tax) Income tax decreased by 75.2%, with the effective tax rate for the reporting period at 16.4% - Income tax was approximately **RMB 2,438 thousand**, a year-on-year decrease of **75.2%**[128](index=128&type=chunk) - The effective tax rate for the reporting period was **16.4%**, compared to **17.8%** for the six months ended June 30, 2024[128](index=128&type=chunk) [Profit for the Period](index=36&type=section&id=Profit%20for%20the%20Period) Profit for the period decreased by 74.9% to RMB 11,436 thousand - Profit for the period was approximately **RMB 11,436 thousand**, a year-on-year decrease of **74.9%**[129](index=129&type=chunk) [Loss/Profit Attributable to Owners of the Company for the Period](index=36&type=section&id=Loss%2FProfit%20Attributable%20to%20Owners%20of%20the%20Company%20for%20the%20Period) The Group recorded a loss attributable to owners of the company of RMB 5,412 thousand, a significant shift from a profit in the prior year - The loss attributable to owners of the company for the period was approximately **RMB 5,412 thousand**, compared to a profit of approximately **RMB 30,716 thousand** in the same period last year[130](index=130&type=chunk) [Liquidity and Sources of Funding](index=36&type=section&id=Liquidity%20and%20Sources%20of%20Funding) The Group maintains sufficient working capital, primarily funded by operations and bank borrowings, with cash and cash equivalents at RMB 230,541 thousand - As of June 30, 2025, cash and cash equivalents amounted to **RMB 230,541 thousand**[131](index=131&type=chunk) - The effective interest rate for fixed-rate loans ranged from **3.3%** to **7.0%**[131](index=131&type=chunk) - The directors believe the Group has sufficient working capital to meet its funding requirements for at least the next twelve months from the date of this interim report[131](index=131&type=chunk) [Cash Flows](index=37&type=section&id=Cash%20Flows) The Group experienced a net decrease in cash and cash equivalents, with operating activities generating positive cash flow but investing and financing activities consuming cash - During the reporting period, cash and cash equivalents decreased by approximately **RMB 4,758 thousand**[133](index=133&type=chunk) 2025 H1 Cash Flows | Cash Flow Activity | Amount (RMB thousand) | | :--- | :--- | | Net Cash Inflow from Operating Activities | 5,884 | | Net Cash Outflow from Investing Activities | (7,516) | | Net Cash Outflow from Financing Activities | (2,191) | | Net Effect of Exchange Rate Changes | (935) | [Capital Structure](index=37&type=section&id=Capital%20Structure) The Group's total borrowings increased, leading to a higher gearing ratio, with various assets pledged as collateral for bank financing - As of June 30, 2025, total borrowings were approximately **RMB 413,754 thousand**, an increase from **RMB 387,616 thousand** at the end of 2024[134](index=134&type=chunk) - The gearing ratio was **26.2%**, an increase from **21.6%** at the end of 2024[135](index=135&type=chunk) 2025 H1 Asset Pledges | Pledged Asset Category | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Investment Properties | 111,600 | 107,000 | | Right-of-Use Assets | 92,681 | 94,257 | | Property, Plant and Equipment | 207,610 | 15,526 | - Capital expenditure during the reporting period was approximately **RMB 1,955 thousand**, mainly for the acquisition of property, plant and equipment[137](index=137&type=chunk) - The Group is exposed to foreign exchange risk arising from RMB, HKD, EUR, and USD[138](index=138&type=chunk) [Contingent Liabilities, Legal and Potential Proceedings](index=38&type=section&id=Contingent%20Liabilities,%20Legal%20and%20Potential%20Proceedings) The Group had no significant legal or potential proceedings as of June 30, 2025, with a prior lawsuit concluded without material adverse impact - As of June 30, 2025, the Group had no significant legal or potential proceedings[139](index=139&type=chunk) - A lawsuit involving the 15% equity transfer of Dongdixin concluded in February 2025, when the Shenzhen People's Procuratorate of Guangdong Province disapproved the retrial application[141](index=141&type=chunk) - This lawsuit had no and will not have any material adverse impact on the normal operations and financial position of the Company and its subsidiaries[141](index=141&type=chunk) [Material Acquisitions and Disposals](index=38&type=section&id=Material%20Acquisitions%20and%20Disposals) The Group did not undertake any material acquisitions or disposals during the six months ended June 30, 2025 - For the six months ended June 30, 2025, the Group had no material acquisitions or disposals[142](index=142&type=chunk) [Going Concern](index=38&type=section&id=Going%20Concern) The Group's financial statements are prepared on a going concern basis, supported by sufficient financial resources for the foreseeable future - Based on its current financial position and available financing, the Group has sufficient financial resources to continue operating for the foreseeable future[143](index=143&type=chunk) - The financial statements have been prepared on a going concern basis[143](index=143&type=chunk) [Future Outlook](index=39&type=section&id=Future%20Outlook) The Group plans to deepen its core strategy, accelerate new product launches, and expand international cooperation to address market challenges and capitalize on health industry trends - In the first half of 2025, China's GDP grew by **5.3%** year-on-year, total retail sales of consumer goods increased by **5.0%**, and national residents' per capita disposable income grew by **5.4%** in real terms[145](index=145&type=chunk) - China's total import and export trade of pharmaceutical and health products reached **USD 97.95 billion**, a year-on-year increase of **0.23%**, with exports growing by **3.80%** to **USD 54.539 billion**[146](index=146&type=chunk) - Per capita healthcare consumption expenditure reached **RMB 1,314**, a year-on-year increase of **3.4%**, accounting for **9.2%** of per capita consumption expenditure[147](index=147&type=chunk) - Medical insurance centralized procurement continued to deepen, with the third batch of proprietary Chinese medicine centralized procurement implemented across **26** provinces nationwide in April 2025, covering **95** products[149](index=149&type=chunk) - Ai Media Consulting predicts that China's pharmaceutical e-commerce market size will exceed **RMB 340 billion** by 2026[152](index=152&type=chunk) - The Group will continue to deepen its core strategy, actively replicate successful product experiences, accelerate the launch of new products with market potential, and continuously optimize its product structure[155](index=155&type=chunk) - In the domestic market, leveraging the "food and medicine homology" concept, the Group will deepen industry-university-research cooperation with top universities like Hong Kong University of Science and Technology to strategically布局 "Cistanche Tubulosa Laxative Oral Liquid"[156](index=156&type=chunk) - In overseas markets, the Group will deepen strategic cooperation with international leading brands in herbal medicine, introducing distinctive products centered on botanical drugs to address emerging health pain points[156](index=156&type=chunk) [Industry Landscape and Trends](index=39&type=section&id=Industry%20Landscape%20and%20Trends) China's health industry showed robust growth in H1 2025, driven by economic expansion, increased health awareness, and policy support for Traditional Chinese Medicine and e-commerce - In the first half of 2025, China's GDP reached **RMB 66,053.6 billion**, a year-on-year increase of **5.3%**; total retail sales of consumer goods reached **RMB 24,545.8 billion**, a year-on-year increase of **5.0%**; national residents' per capita disposable income was **RMB 21,840**, a real increase of **5.4%**[145](index=145&type=chunk) - China's total import and export trade of pharmaceutical and health products reached **USD 97.95 billion**, a year-on-year increase of **0.23%**, with exports at **USD 54.539 billion**, a year-on-year increase of **3.80%**[146](index=146&type=chunk) - Per capita healthcare consumption expenditure reached **RMB 1,314**, a year-on-year increase of **3.4%**, and its proportion in per capita consumption expenditure rose to **9.2%**[147](index=147&type=chunk) - In the first half of 2025, the National Medical Products Administration approved **14** new Traditional Chinese Medicine drugs, including **5** innovative Traditional Chinese Medicine drugs[150](index=150&type=chunk) - Ai Media Consulting predicts that China's pharmaceutical e-commerce market size will exceed **RMB 340 billion** by 2026[152](index=152&type=chunk) [Challenges and Strategies](index=41&type=section&id=Challenges%20and%20Strategies) Facing a downturn in physical pharmacy sales, the Group plans to accelerate new product launches, optimize its product structure, and expand strategic collaborations in both domestic and international markets - In Q1 2025, retail sales of proprietary Chinese medicines were **RMB 41.2 billion**, a year-on-year decrease of **7.67%**[153](index=153&type=chunk) - From January to June 2025, the cumulative scale of China's physical pharmacies was **RMB 296.1 billion**, a **2.2%** decline from the same period last year[153](index=153&type=chunk) - The Group will continue to deepen its core strategy, actively replicate successful product experiences, accelerate the launch of new products with market potential, and continuously optimize its product structure[155](index=155&type=chunk) - In the domestic market, leveraging the "food and medicine homology" concept, the Group will deepen industry-university-research cooperation with top universities like Hong Kong University of Science and Technology to strategically布局 "Cistanche Tubulosa Laxative Oral Liquid"[156](index=156&type=chunk) - In overseas markets, the Group will deepen strategic cooperation with international leading brands in herbal medicine, introducing distinctive products centered on botanical drugs to address emerging health pain points such as sleep disorders, emotional tension, and post-COVID lung function recovery[156](index=156&type=chunk) [Conclusion](index=42&type=section&id=Conclusion) Kingworld Medicines Group is committed to proactive development in the big health sector, focusing on innovation, service upgrades, and strengthening core competitiveness - Kingworld Medicines Group will work together with employees and partners to flexibly adjust strategic implementation in the "VUCA era"[157](index=157&type=chunk) - Upholding the spirit of proactive progress and sincere altruism, the Group will deeply cultivate the big health sector, promote product innovation and service upgrades, and strengthen core competitiveness[157](index=157&type=chunk) [Other Information](index=43&type=section&id=Other%20Information) This section covers the Group's human resources, equity disclosures, share schemes, capital commitments, public float, dividends, securities transactions, corporate governance, and post-reporting period events [Human Resources and Training](index=43&type=section&id=Human%20Resources%20and%20Training) The Group employs 759 staff across its head office, regional sales, and Dongdixin, with a focus on training and incentive programs to enhance efficiency - As of June 30, 2025, the Group had a total of **759** employees[159](index=159&type=chunk) - Of these, **137** were employed at the Shenzhen head office, **261** were stationed in **36** other regions performing sales and marketing duties, and **361** were employed at Dongdixin[159](index=159&type=chunk) - For the six months ended June 30, 2025, the total remuneration paid by the Group to employees was approximately **RMB 61,110 thousand** (2024: approximately **RMB 66,559 thousand**)[159](index=159&type=chunk) - The Group employs various incentive mechanisms to enhance employee efficiency, regularly assesses employee performance, and provides training for different functional employees[159](index=159&type=chunk) [Disclosure of Interests](index=44&type=section&id=Disclosure%20of%20Interests) This section details the interests and short positions of the Company's directors, chief executive, and substantial shareholders in the Company's shares and underlying shares [Interests and Short Positions of Directors and Chief Executive in Shares, Underlying Shares and Debentures of the Company and its Associated Corporations](index=44&type=section&id=Interests%20and%20Short%20Positions%20of%20Directors%20and%20Chief%20Executive%20in%20Shares,%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20and%20its%20Associated%20Corporations) The table below summarizes the interests and short positions of the Company's directors and chief executive in the Company's shares as of June 30, 2025 Interests of Directors and Chief Executive in Company Shares (as of June 30, 2025) | Director Name | Capacity/Nature of Interest | Number of Company Shares Held | Approximate Percentage of Total Issued Share Capital of the Company | | :--- | :--- | :--- | :--- | | Zhao Lisheng | Beneficial Owner | 24,720,000 | 3.97% | | | Spouse's Interest | 90,448,000 | 14.53% | | | Interest in Controlled Corporation | 297,812,250 | 47.84% | | Chen Leshen | Beneficial Owner | 448,000 | 0.07% | | | Spouse's Interest | 322,532,250 | 51.81% | | | Interest in Controlled Corporation | 90,000,000 | 14.46% | | Zhou Xuhua | Beneficial Owner | 296,000 | 0.05% | | | Spouse's Interest | 2,380,000 | 0.38% | | Zhang Jianbin | Beneficial Owner | 248,000 | 0.04% | | Duan Jidong | Beneficial Owner | 212,000 | 0.03% | | Huang Zhuolin | Beneficial Owner | 212,000 | 0.03% | Interests of Directors in Shares of Associated Corporations (as of June 30, 2025) | Director Name | Name of Associated Corporation | Capacity/Nature of Interest | Percentage of Equity Interest | | :--- | :--- | :--- | :--- | | Zhao Lisheng | Kingworld | Beneficial Owner | 100% | | Chen Leshen | Jinchen | Beneficial Owner | 100% | [Interests and Short Positions of Substantial Shareholders in Shares and Underlying Shares of the Company](index=46&type=section&id=Interests%20and%20Short%20Positions%20of%20Substantial%20Shareholders%20in%20Shares%20and%20Underlying%20Shares%20of%20the%20Company) The table below outlines the interests and short positions of substantial shareholders in the Company's shares as of June 30, 2025 Interests of Substantial Shareholders in Company Shares (as of June 30, 2025) | Shareholder Name | Capacity/Nature of Interest | Number of Company Shares Held | Approximate Percentage of Total Issued Share Capital of the Company | | :--- | :--- | :--- | :--- | | Kingworld | Beneficial Owner | 297,812,250 | 47.84% | | Jinchen | Beneficial Owner | 90,000,000 | 14.46% | | Zhao Lisheng | Beneficial Owner | 24,720,000 | 3.97% | | | Spouse's Interest | 90,448,000 | 14.53% | | | Interest in Controlled Corporation | 297,812,250 | 47.84% | | Chen Leshen | Beneficial Owner | 448,000 | 0.07% | | | Spouse's Interest | 322,532,250 | 51.81% | | | Interest in Controlled Corporation | 90,000,000 | 14.46% | | Sinopharm Healthcare Fund L.P

Core Viewpoint - Consumer spending is becoming a crucial support for improving people's livelihoods and an important engine for economic development, with financial policies aimed at stimulating domestic demand [1] Group 1: Implementation of Financial Policies - Guangfa Bank has launched a personal consumption loan interest subsidy service on September 1, 2025, to lower consumer credit costs and stimulate market consumption potential [1] - The implementation aligns with the central government's directive to boost consumption and expand domestic demand [1] Group 2: Targeted Consumer Credit Services - Guangfa Bank focuses on seven key consumption areas: household vehicles, elderly care and childbirth, education and training, cultural tourism, home decoration, electronic products, and health care [2] - The bank aims to enhance consumer experience through innovative financial services, such as home decoration loans and health care loans, addressing core needs in various life scenarios [2] - In the household vehicle sector, Guangfa Bank promotes its "Car E Loan" product, offering features like zero down payment and flexible repayment options to reduce the financial burden on consumers [2] Group 3: Enhancing Consumer Experience - The subsidy policy aims to guide credit resources to consumption sectors, lowering financing costs and improving livelihoods [3] - Guangfa Bank has established a streamlined process for consumers to access benefits, allowing automatic recognition of eligible transactions for interest subsidies [3] - The bank plans to further optimize consumer credit products and services, enhancing the effectiveness of the subsidy policy and contributing to economic development [3]

Group 1 - The fund is named "Guoshou Anbao Selected Stable Pension Target One-Year Holding Period Mixed Fund of Funds (FOF)" and is categorized as a mixed fund of funds [26][27] - The fund is open for subscription from September 25, 2025, to October 24, 2025, with no upper limit on the initial fundraising scale [33][26] - The fund has a minimum holding period of one year for each share, during which investors cannot redeem their shares [10][27] Group 2 - The fund is managed by Guoshou Anbao Fund Management Co., Ltd., and the custodian is Guangfa Bank Co., Ltd. [2][3] - The fund aims to achieve long-term stable appreciation of assets while strictly controlling downside risks and maintaining asset liquidity [29][26] - The fund's investment strategy includes investing at least 80% of its assets in publicly offered funds approved or registered by the China Securities Regulatory Commission [9][10] Group 3 - The fund allows individual and institutional investors, including qualified foreign institutional investors, to participate [30][3] - The minimum subscription amount is set at 1 RMB, and there are no upper limits on the total subscription amount during the fundraising period [36][3] - The fund may implement measures to limit subscriptions if a single investor's cumulative subscription reaches or exceeds 50% of the total fund shares [4][3]

Core Viewpoint - The collaboration between Guangfa Bank Chongqing Branch and the Chongqing Three Gorges Citrus Group aims to support local farmers and enhance the citrus industry through financial assistance, addressing challenges such as slow sales and delayed payments [1][2]. Group 1: Financial Support for Farmers - Guangfa Bank Chongqing Branch provided a credit line of 20 million yuan specifically for the procurement of citrus from local farmers, ensuring timely payment for their produce [1]. - The bank's financial support has enabled farmers to process and distribute their citrus products efficiently, alleviating their concerns about cash flow and operational costs [1]. Group 2: Industry Development and Collaboration - The Chongqing Three Gorges Citrus Group is focused on optimizing and upgrading the citrus industry chain, facing financial pressures despite its leadership role in regional development [2]. - Guangfa Bank is committed to supporting the entire citrus industry ecosystem, from planting to processing and branding, fostering collaborative growth within the sector [2]. Group 3: Growth Metrics and Future Plans - As of mid-2025, Guangfa Bank Chongqing Branch reported a 26.5% increase in green credit balance, an 11.1% rise in agricultural loans, and a 36.1% increase in inclusive agricultural loans, demonstrating its commitment to supporting the real economy and rural revitalization [2]. - The bank plans to replicate its successful financial support model for the citrus industry in other local specialty sectors, contributing to high-quality development in Chongqing [3].

Core Viewpoint - The collaboration between Guangfa Bank Chongqing Branch and the Chongqing Three Gorges Citrus Group aims to enhance the citrus industry in the region by providing financial support to farmers and the industry as a whole, thereby promoting rural revitalization and economic development [1][2]. Group 1: Financial Support to Farmers - Guangfa Bank Chongqing Branch has provided a credit line of 20 million yuan specifically for the procurement of citrus at the origin, addressing the challenges faced by farmers regarding slow sales and payment collection [1]. - The timely disbursement of funds has enabled farmers to receive prompt payment for their produce, facilitating the processing and distribution of citrus products across the country [1]. Group 2: Support for Industry Development - The Chongqing Three Gorges Citrus Group, as a leading player in the regional industry, is focused on optimizing and upgrading the citrus industry chain, while facing financial pressures in collaboration and structural optimization [1]. - Guangfa Bank has offered targeted financing support based on the real trade background and development plans of the group, alleviating the tight liquidity situation of the enterprise and injecting financial momentum into brand building and industry resilience [1]. Group 3: Commitment to Sustainable Development - Guangfa Bank Chongqing Branch emphasizes the importance of supporting the entire citrus industry chain, from planting to processing and brand marketing, to foster a collaborative ecosystem [2]. - As of mid-2025, the bank's green credit balance has increased by 26.5% since the beginning of the year, with agricultural loans growing by 11.1% and inclusive agricultural loans rising by 36.1%, reflecting the bank's commitment to serving the real economy and supporting rural revitalization [2]. - The bank plans to replicate its successful experience in supporting the citrus industry to other specialty sectors, contributing to high-quality development in Chongqing [2].

Core Viewpoint - The National Financial Regulatory Administration has issued a second batch of fines in September, totaling over 166 million yuan, targeting various financial institutions for issues related to credit approval, regulatory data reporting, and capital operation risks [1][2][11]. Summary by Category Fines and Penalties - A total of 18 entities, including policy banks, state-owned banks, joint-stock banks, and local banks, have been penalized, with fines amounting to approximately 269 million yuan in September alone [2][11]. - Specific fines include: - Guangfa Bank: 66.7 million yuan for improper management of loans and regulatory data reporting [2]. - Hengfeng Bank: 61.5 million yuan for similar issues [2][3]. - Minsheng Bank: 5.9 million yuan for inadequate system control [4]. - Citic Bank: 5.5 million yuan for inaccurate risk classification [5]. - China Export-Import Bank: 1.3 million yuan for poor country risk management [6]. Regulatory Focus - The regulatory focus remains on compliance in credit and bill operations, with significant scrutiny on the capital operations of wealth management subsidiaries and financial asset investment companies [11]. - The recent fines highlight a trend of "responsibility to individuals," with 32 individuals facing penalties, including warnings, fines, and bans from the banking industry [11]. Institutional Responses - Guangfa Bank and Hengfeng Bank have both acknowledged the penalties and stated that they have completed the necessary rectifications and are committed to improving their risk management and internal controls [2][3]. - Huaxia Wealth Management has also accepted the penalties and emphasized compliance with regulatory requirements in their operations [7]. Notable Cases - The only individual penalty involved former employees of the Industrial and Commercial Bank of China, who were banned from the banking industry for serious violations of prudent management rules [11].