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10月31日 | | --- | | 狀態: | | 新提交 | 致：香港交易及結算所有限公司 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) | 01241 | 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 | | 0.01 HKD | | | 100,000,000 | | 增加 / 減少 (-) | | | | | | HKD | | | | | 本月底結存 | | | 10,000,000,000 | HKD | | 0.01 HKD | | | 100,000,000 | 本月底法定/註冊股本總額： HKD ...

致：香港交易及結算所有限公司 公司名稱: 雙樺控股有限公司 呈交日期: 2025年9月30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) | 01241 | 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 | | 0.01 | HKD | | 100,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 10,000,000,000 | HKD | | 0.01 | HKD | | 100,000,000 | 本月底法定/註冊股本總額： HKD 100,000,000 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 第 ...

Company Information [Company Basic Information](index=2&type=section&id=Company%20Basic%20Information) Shuanghua Holdings Limited (Stock Code: 1241) is a Cayman Islands-incorporated company based in Shanghai, focusing on supply chain management and food supply business - Company Name: **Shuanghua Holdings Limited**, Stock Code: **1241**[1](index=1&type=chunk)[8](index=8&type=chunk)[9](index=9&type=chunk) - Registered in the **Cayman Islands**; Headquarters in **Shanghai, China**; Principal place of business in Hong Kong: **Kowloon Bay, Hong Kong**[8](index=8&type=chunk) - Board members include Executive Directors Mr. Zheng Ping (Chairman and CEO), Ms. Zheng Fei, Ms. Deng Luna; Non-Executive Director Ms. Kong Xiaoling; and Independent Non-Executive Directors Mr. He Binhui, Mr. Chen Lifan, and Ms. Guo Ying[8](index=8&type=chunk) Management Discussion and Analysis This section details Shuanghua Holdings Limited's H1 2025 macroeconomic challenges, business performance, future strategies, financial position, liquidity, capital expenditure, and human resources [Business Review](index=5&type=section&id=Business%20Review) In H1 2025, the Group's revenue significantly declined due to global geopolitical conflicts, US tariffs, and China's economic downturn, yet loss attributable to owners narrowed through refined management and cost control - The Group's primary businesses are supply chain management based on its own cold storage and properties, and food supply of high-end agricultural products like fruits, both domestically and internationally[10](index=10&type=chunk) - In H1 2025, frequent global geopolitical conflicts, increased US tariffs, and China's economic pressure led to a **0.1% year-on-year decrease in CPI** and a **2.8% decrease in PPI**[10](index=10&type=chunk) H1 2025 Sales Revenue and Loss | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-Year Change (RMB million) | | :--- | :--- | :--- | :--- | | Sales Revenue | 12.8 | 60.6 | -47.8 | | Loss Attributable to Owners of Parent | 2.1 | 3.2 | -1.1 (Loss narrowed) | H1 2025 Business Segment Revenue | Business Segment | H1 2025 Revenue (RMB million) | | :--- | :--- | | Supply Chain Management Business | 6.5 | | Food Supply Business | 6.3 | - Due to China's consumption downgrade leading to lower sales prices and unstable global trade increasing import costs, the Group reduced low-margin orders and actively pursued product diversification[11](index=11&type=chunk) [Outlook and Strategies](index=6&type=section&id=Outlook%20and%20Strategies) For H2 2025, the Group anticipates continued geopolitical and trade uncertainties, focusing on product and service diversification, one-stop supply chain solutions, and exploring innovative tech like power battery technology for robust growth - In H2 2025, the global geopolitical landscape remains complex, with uncertain US tariffs and trade policies, making it difficult to significantly boost domestic effective demand[13](index=13&type=chunk) - Strategy one: Promote product and service diversification, deepen one-stop supply chain solutions, and enhance warehousing capacity and turnover rate; expand protein and aquatic product lines in food supply, strengthening upstream resource integration and downstream customer network development[13](index=13&type=chunk)[14](index=14&type=chunk)[15](index=15&type=chunk) - Strategy two: Expand supply chain businesses for other goods and services through acquisitions, investments, joint ventures, or strategic alliances, actively seeking opportunities in innovative technology sectors (e.g., green energy), and planning to introduce advanced global power battery technology to develop new productive forces[13](index=13&type=chunk)[16](index=16&type=chunk) [Financial Review](index=7&type=section&id=Financial%20Review) In H1 2025, the Group experienced a significant revenue and gross profit decline, but increased other income and gains, substantial trade receivables impairment reversal, reduced administrative expenses, and stable interest expenses, leading to a narrowed loss attributable to owners H1 2025 Revenue Overview | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Year-on-Year Change (RMB thousand) | | :--- | :--- | :--- | :--- | | Revenue | 12,789 | 60,563 | -47,774 | | Gross Profit | 1,119 | 4,439 | -3,320 | | Other income, gains and losses | 3,005 | 2,090 | +915 | | Reversal of impairment loss on trade receivables | 2,676 | 112 | +2,564 | | Selling and distribution costs | 938 | 916 | +22 | | Administrative expenses | 8,257 | 8,896 | -639 | | Interest expenses | 3 | 12 | -9 | | Loss Attributable to Owners of Parent | 2,115 | 3,183 | -1,068 (Loss narrowed) | H1 2025 Revenue and Gross Profit by Business Segment | Business Segment | 2025 Revenue (RMB thousand) | 2024 Revenue (RMB thousand) | 2025 Gross Profit (RMB thousand) | 2024 Gross Profit (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Supply Chain Management Business | 6,463 | 13,531 | 1,112 | 3,819 | | Food Supply Business | 6,326 | 47,032 | 7 | 620 | | Total | 12,789 | 60,563 | 1,119 | 4,439 | - The decrease in gross profit was primarily due to lower product sales prices and volumes resulting from China's consumption downgrade, coupled with increased import product costs[18](index=18&type=chunk) - The increase in other income, gains and losses was mainly attributable to investment income from financial assets[21](index=21&type=chunk) - The decrease in administrative expenses was primarily due to reduced consulting fees[24](index=24&type=chunk) [Liquidity and Financial Resources](index=10&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's net current assets and total cash and financial assets increased with no bank borrowings, while significantly reduced average inventory turnover days and increased trade receivables and payables turnover days reflect enhanced inventory management and improved terms with stakeholders Liquidity and Financial Resources Overview | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Net Current Assets | 90.3 | 89.7 | +0.6 | | Total Cash and Financial Assets | 91.1 | 88.2 | +2.9 | - The Group had **no bank borrowings** as of June 30, 2025, and December 31, 2024[29](index=29&type=chunk) Working Capital Turnover Days | Metric | H1 2025 (days) | H1 2024 (days) | Change (days) | | :--- | :--- | :--- | :--- | | Average Inventory Turnover Days | 0 | 5 | -5 | | Average Trade Receivables and Bills Receivable Turnover Days | 135 | 81 | +54 | | Average Trade Payables and Bills Payable Turnover Days | 97 | 51 | +46 | - The decrease in average inventory turnover days was mainly due to the Group's enhanced inventory turnover management[30](index=30&type=chunk) - The increase in average trade receivables and bills receivable turnover days was primarily due to extended credit terms for reputable customers; the increase in average trade payables and bills payable turnover days was mainly due to the Group negotiating more favorable terms with suppliers[31](index=31&type=chunk) [Capital Expenditure, Capital Commitments and Human Resources](index=11&type=section&id=Capital%20Expenditure%2C%20Capital%20Commitments%20and%20Human%20Resources) In H1 2025, the Group's capital expenditure focused on cold storage construction, with a significant year-on-year reduction in capital commitments; as of period-end, 42 employees' remuneration and benefits were disclosed, guided by position, performance, market conditions, and statutory social security Capital Expenditure and Capital Commitments | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Capital Expenditure | 1.7 | 1.3 | +0.4 | | Capital Commitments (Period-end) | 1.0 | 7.3 | -6.3 | - Capital expenditure and capital commitments were primarily for cold storage area construction[32](index=32&type=chunk) Human Resources and Remuneration Benefits | Metric | June 30, 2025 | H1 2025 (RMB million) | | :--- | :--- | :--- | | Total Employees | 42 employees | - | | Remuneration (excluding Directors' and Senior Management's) | - | 2.5 | | Benefit Expenses | - | 0.4 | - Remuneration policy is based on employee responsibilities, performance, length of service, and market conditions, complying with Chinese labor laws and regulations, and providing various employee social insurance schemes and housing provident funds[32](index=32&type=chunk)[33](index=33&type=chunk) [Significant Investments, Acquisitions and Disposals](index=13&type=section&id=Significant%20Investments%2C%20Acquisitions%20and%20Disposals) For the six months ended June 30, 2025, the Group made no significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, the Group had **no significant investments, acquisitions, or disposals** of subsidiaries, associates, or joint ventures[34](index=34&type=chunk) [Foreign Exchange Risk](index=13&type=section&id=Foreign%20Exchange%20Risk) Operating in China with RMB as functional currency, the Group faces transactional currency risk from HKD and USD exchange rate fluctuations against RMB, with no current hedging intent but ongoing monitoring for future measures - The Group's operations are in China, with RMB as its functional and presentation currency, primarily exposed to transactional currency risk from **HKD and USD exchange rate fluctuations against RMB**[35](index=35&type=chunk) - Currently, the Group has **no intention to hedge foreign exchange fluctuation risks**, but management will continue to monitor and consider appropriate hedging measures when necessary[35](index=35&type=chunk) [Contingent Liabilities](index=14&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had **no significant contingent liabilities** (December 31, 2024: Nil)[36](index=36&type=chunk) [Pledge of Assets](index=14&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group had no pledge of assets - As of June 30, 2025, the Group had **no pledge of assets** (December 31, 2024: Nil)[37](index=37&type=chunk) [Interim Dividend](index=14&type=section&id=Interim%20Dividend) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does **not recommend** the payment of an interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: Nil)[38](index=38&type=chunk) [Significant Events After Reporting Period](index=14&type=section&id=Significant%20Events%20After%20Reporting%20Period) No significant events requiring disclosure occurred after the reporting period - No significant events requiring disclosure occurred after the reporting period[39](index=39&type=chunk) Corporate Governance and Other Information This section discloses Shuanghua Holdings Limited's corporate governance practices, including directors' and major shareholders' interests, share option scheme, securities trading compliance, board committee structures, and adherence to the Corporate Governance Code, noting the deviation of combined Chairman and CEO roles [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures](index=14&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures) As of June 30, 2025, Executive Director Mr. Zheng Ping and his spouse, Non-Executive Director Ms. Kong Xiaoling, jointly held a **43.5% long position** in the Company's issued share capital through You Shen International Group Limited Directors' and Chief Executive's Long Positions in Shares (June 30, 2025) | Director's Name | Nature of Interest | Number of Shares | Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Zheng Ping | Corporate Interest (through You Shen Group) | 282,750,000 | 43.5% | | Ms. Kong Xiaoling | Family Interest (spouse of Mr. Zheng Ping) | 282,750,000 | 43.5% | - Mr. Zheng Ping holds **100% interest** in You Shen International Group Limited, and Ms. Kong Xiaoling, his spouse, is deemed to have an interest in the shares held by You Shen Group[41](index=41&type=chunk) [Interests Discloseable Under the Securities and Futures Ordinance and Major Shareholders](index=15&type=section&id=Interests%20Discloseable%20Under%20the%20Securities%20and%20Futures%20Ordinance%20and%20Major%20Shareholders) As of June 30, 2025, You Shen International Group Limited, Ms. Zhou Shuxian, and Mr. Xu Zonglin were major shareholders, holding **43.5%**, **18.5%**, and **9.1%** long positions respectively, excluding directors Major Shareholders' Long Positions in Shares (June 30, 2025) | Shareholder Name | Capacity | Number of Shares | Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | You Shen Group | Beneficial Owner | 282,750,000 | 43.5% | | Ms. Zhou Shuxian | Beneficial Owner | 120,160,000 | 18.5% | | Mr. Xu Zonglin | Beneficial Owner | 59,144,000 | 9.1% | - The interest of You Shen Group is associated with the interests of Executive Director Mr. Zheng Ping and his spouse Ms. Kong Xiaoling[44](index=44&type=chunk) [Share Option Scheme](index=16&type=section&id=Share%20Option%20Scheme) The Company adopted a new 2022 Share Option Scheme on June 30, 2022, with a ten-year validity, to reward eligible participants, capped at **10% of issued shares** and **1% for any single participant within 12 months**, with no options granted as of June 30, 2025 - The Company adopted a new Share Option Scheme (the **2022 Share Option Scheme**) on **June 30, 2022**, with a **ten-year validity**, aiming to reward eligible participants who contribute to the Group[46](index=46&type=chunk)[47](index=47&type=chunk) - The scheme limit is **10% of the total issued shares** (**65,000,000 shares**), with a **1% limit** for options granted to any single eligible participant within a 12-month period[46](index=46&type=chunk) - For the six months ended June 30, 2025, **no share options were granted, exercised, lapsed, or cancelled**, and no share options under the 2022 Share Option Scheme were issued[48](index=48&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities or Sale of Treasury Shares](index=18&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities%20or%20Sale%20of%20Treasury%20Shares) For the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities, nor held any treasury shares - For the six months ended June 30, 2025, neither the Company nor its subsidiaries **purchased, sold, or redeemed any of the Company's listed securities**, nor held any treasury shares[49](index=49&type=chunk) [Compliance with the Corporate Governance Code](index=18&type=section&id=Compliance%20with%20the%20Corporate%20Governance%20Code) The Company adopted the Corporate Governance Code in Appendix C1 of the Listing Rules, complying with all provisions during the reporting period except for Code Provision C.2.1, where Mr. Zheng Ping holds both Chairman and CEO roles, which the Board believes facilitates swift decision-making - The Company has adopted the Corporate Governance Code in **Appendix C1 of the Listing Rules** and complied with all code provisions during the reporting period[50](index=50&type=chunk) - Deviation from Code Provision C.2.1: The roles of Chairman and Chief Executive Officer are combined and held by **Mr. Zheng Ping**, which the Board believes facilitates prompt and efficient decision-making and implementation[51](index=51&type=chunk) [Compliance with the Model Code](index=18&type=section&id=Compliance%20with%20the%20Model%20Code) The Company adopted the Model Code in Appendix C3 of the Listing Rules as the code of conduct for directors' securities transactions, with all directors confirming compliance for the six months ended June 30, 2025 - The Company has adopted the Model Code in **Appendix C3 of the Listing Rules** as the code of conduct for directors' securities transactions[52](index=52&type=chunk) - All Directors confirmed compliance with the required standards of the Model Code for the six months ended June 30, 2025[52](index=52&type=chunk) [Competition and Conflicts of Interest](index=19&type=section&id=Competition%20and%20Conflicts%20of%20Interest) As of the report date, no director or their associates held any direct or indirect interests in businesses competing or potentially competing with the Group, nor were there any other conflicts of interest - As of the date of this report, **no Director or their associates** had any direct or indirect interests in any business competing or potentially competing with the Group's business, nor were there any other conflicts of interest[53](index=53&type=chunk) [Nomination Committee](index=19&type=section&id=Nomination%20Committee) The Company established a Nomination Committee, chaired by Mr. Chen Lifan, primarily responsible for recommending suitable directors and management to the Board to enhance corporate strategy - The Company has established a Nomination Committee, chaired by **Mr. Chen Lifan**, with members including Mr. He Binhui and Ms. Guo Ying[54](index=54&type=chunk) - Its primary responsibility is to make recommendations to the Board regarding the appointment of suitable directors and management (including skills, knowledge, and experience) to enhance the Company's corporate strategy[54](index=54&type=chunk) [Board Diversity Policy](index=19&type=section&id=Board%20Diversity%20Policy) The Board adopted and revised its Diversity Policy in 2019 and 2023, respectively, aiming to enhance company performance, optimize leadership structure, and promote long-term development by considering gender, age, race, cultural and educational background, professional skills, and occupational experience, with the Nomination Committee making appointment decisions based on overall merits - The Board adopted its Diversity Policy in **2019** and revised it in **2023**, aiming to enhance company performance, optimize leadership structure, improve talent quality, and promote the Group's long-term development[55](index=55&type=chunk) - Candidate selection will be based on a range of diversity criteria, including but not limited to **gender, age, race, cultural and educational background, professional skills, occupational experience, management level, and length of service**[55](index=55&type=chunk) [Remuneration Committee](index=19&type=section&id=Remuneration%20Committee) The Company established a Remuneration Committee, chaired by Ms. Guo Ying, primarily responsible for recommending remuneration policies and structures for directors and senior management to the Board, and determining their specific remuneration packages - The Company has established a Remuneration Committee, chaired by **Ms. Guo Ying**, with members including Mr. He Binhui and Mr. Chen Lifan[56](index=56&type=chunk) - Its primary responsibility is to make recommendations to the Board regarding the Group's remuneration policies and structures for directors and senior management, and to determine their specific remuneration packages[56](index=56&type=chunk) [Audit Committee](index=20&type=section&id=Audit%20Committee) The Company established an Audit Committee, comprising three independent non-executive directors with Mr. He Binhui as Chairman, responsible for reviewing financial reporting, internal controls, and risk management systems, and serving as a key liaison between the Board and auditors, deeming current systems adequate and effective - The Company has established an Audit Committee, comprising three independent non-executive directors: **Mr. He Binhui (Chairman)**, Ms. Guo Ying, and Mr. Chen Lifan[57](index=57&type=chunk) - The Committee is responsible for reviewing the financial reporting process and the adequacy and effectiveness of the Group's internal control and risk management systems[57](index=57&type=chunk) - The Audit Committee believes that the Group's current internal control and risk management systems are **adequate and effective**[57](index=57&type=chunk) [Review of Interim Results](index=20&type=section&id=Review%20of%20Interim%20Results) The Audit Committee reviewed the Company's unaudited consolidated results and interim report for the six months ended June 30, 2025, discussing accounting principles, practices, internal controls, and financial reporting matters with management - The Audit Committee has reviewed the Company's **unaudited consolidated results** and this interim report for the six months ended June 30, 2025[58](index=58&type=chunk) - The Committee, together with management, reviewed the accounting principles and practices adopted by the Group and discussed internal controls and financial reporting matters[58](index=58&type=chunk) Unaudited Interim Condensed Consolidated Financial Information This section presents Shuanghua Holdings Limited's unaudited interim condensed consolidated financial statements for the six months ended June 30, 2025, including the statement of profit or loss and other comprehensive income, statement of financial position, statement of changes in equity, and statement of cash flows, providing an overview of the Company's financial performance during the reporting period [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=21&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group reported **RMB 12.8 million in revenue**, **RMB 1.1 million in gross profit**, a **loss attributable to owners of RMB 2.1 million**, and a **basic loss per share of 0.3 cents**, reflecting significant declines in revenue and gross profit but a narrowed loss compared to the prior period Profit or Loss and Other Comprehensive Income Overview | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 12,789 | 60,563 | | Cost of sales | (11,670) | (56,124) | | Gross Profit | 1,119 | 4,439 | | Other income, gains and losses | 3,005 | 2,090 | | Reversal of impairment loss on trade receivables | 2,676 | 112 | | Selling and distribution costs | (938) | (916) | | Administrative expenses | (8,257) | (8,896) | | Interest expenses | (3) | (12) | | Loss before tax | (2,398) | (3,183) | | Income tax recoverable | 283 | – | | Total comprehensive loss for the period | (2,115) | (3,183) | | Loss Attributable to Owners of Parent | (2,115) | (3,183) | | Basic and diluted loss per share | (0.3) cents | (0.5) cents | [Interim Condensed Consolidated Statement of Financial Position](index=22&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets were **RMB 279.3 million**, slightly up from year-end 2024, with non-current assets primarily comprising property, plant and equipment, investment properties, and right-of-use assets; current assets saw increases in cash and cash equivalents and financial assets at fair value, while total liabilities slightly rose due to increased trade payables Financial Position Overview (June 30, 2025 vs December 31, 2024) | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Assets** | | | | Total non-current assets | 169,556 | 172,569 | | Total current assets | 109,783 | 105,750 | | **Total assets** | **279,339** | **278,319** | | **Liabilities** | | | | Total current liabilities | 19,487 | 16,069 | | Total non-current liabilities | 1,269 | 1,552 | | **Total liabilities** | **20,756** | **17,621** | | **Equity** | | | | Net assets/Total equity | 258,583 | 260,698 | - Trade receivables and bills receivable decreased from **RMB 11,954 thousand** at year-end 2024 to **RMB 7,234 thousand**[61](index=61&type=chunk) - Cash and cash equivalents increased from **RMB 79,934 thousand** at year-end 2024 to **RMB 81,520 thousand**[61](index=61&type=chunk) - Trade payables increased from **RMB 3,980 thousand** at year-end 2024 to **RMB 8,587 thousand**[61](index=61&type=chunk) [Interim Condensed Consolidated Statement of Changes in Equity](index=24&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, equity attributable to owners of the parent decreased by **RMB 2.1 million** due to the loss for the period, from **RMB 260.7 million** as of January 1, 2025, to **RMB 258.6 million** Equity Changes Overview | Metric | January 1, 2025 (RMB thousand) | Loss and total comprehensive income for the period (RMB thousand) | June 30, 2025 (RMB thousand) | | :--- | :--- | :--- | :--- | | Equity Attributable to Owners of Parent | 260,694 | (2,115) | 258,579 | | Non-controlling Interests | 4 | – | 4 | | **Total Equity** | **260,698** | **(2,115)** | **258,583** | [Interim Condensed Consolidated Statement of Cash Flows](index=25&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, the Group generated **RMB 3.3 million** in net cash from operating activities, had **RMB 1.7 million** in net cash outflow from investing activities, and **RMB 3 thousand** in net cash outflow from financing activities, resulting in a **net increase of RMB 1.6 million** in cash and cash equivalents Cash Flow Overview | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Net cash generated from operating activities | 3,269 | 28,856 | | Net cash used in investing activities | (1,680) | (1,151) | | Net cash used in financing activities | (3) | (383) | | Net increase in cash and cash equivalents | 1,586 | 27,322 | | Cash and cash equivalents at beginning of period | 79,934 | 65,349 | | Cash and cash equivalents at end of period | 81,520 | 92,671 | - Net cash generated from operating activities significantly decreased year-on-year, reflecting increased pressure on business operating cash flow[65](index=65&type=chunk) Notes to the Interim Condensed Consolidated Financial Statements This section provides detailed notes to the interim condensed consolidated financial statements, covering company and group information, basis of preparation, accounting standards application, operating segment information, revenue breakdown, loss before tax details, income tax, dividends, loss per share, key assets (property, plant and equipment, right-of-use assets, financial assets), receivables, cash, payables, capital commitments, related party transactions, and fair value measurement of financial instruments, offering essential context and details for understanding the financial data [Company and Group Information](index=26&type=section&id=Company%20and%20Group%20Information) Shuanghua Holdings Limited, incorporated in the Cayman Islands in 2010, primarily engages in supply chain management and food supply in China, with You Shen International Group Limited, incorporated in the British Virgin Islands, as its parent and ultimate holding company - The Company was incorporated in the **Cayman Islands** on **November 19, 2010**[66](index=66&type=chunk) - The Group is principally engaged in supply chain management business based on its own cold storage and properties, and food supply business of high-end agricultural products like fruits, both domestically and internationally[66](index=66&type=chunk) - The Company's parent and ultimate holding company is **You Shen International Group Limited**, incorporated in the British Virgin Islands[66](index=66&type=chunk) [Basis of Preparation](index=27&type=section&id=Basis%20of%20Preparation) These interim condensed consolidated financial statements are prepared in accordance with HKAS 34 'Interim Financial Reporting' and Listing Rules disclosure requirements, using the historical cost convention and presented in RMB, and should be read in conjunction with the 2024 annual financial statements - These interim condensed consolidated financial statements are prepared in accordance with **Hong Kong Accounting Standard 34 'Interim Financial Reporting'** and the applicable disclosure requirements of the Listing Rules[67](index=67&type=chunk) - The statements are prepared under the **historical cost convention** (except for certain financial assets) and presented in **RMB**[67](index=67&type=chunk) [Application of Revised Hong Kong Financial Reporting Standards](index=28&type=section&id=Application%20of%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards) The accounting policies and calculation methods used in the interim condensed consolidated financial statements for the six months ended June 30, 2025, are consistent with the 2024 annual financial statements, except for changes due to new and revised HKFRSs effective from January 1, 2025 (e.g., amendments to HKAS 21), which had no significant impact on the Group's accounting policies - The accounting policies for the six months ended June 30, 2025, are consistent with the 2024 annual financial statements, except for the application of new and revised Hong Kong Financial Reporting Standards (HKFRSs) effective for annual periods beginning on or after **January 1, 2025**[68](index=68&type=chunk) - The revised HKFRSs (e.g., amendments to HKAS 21) had **no significant impact** on the Group's accounting policies[68](index=68&type=chunk) [Operating Segment Information](index=29&type=section&id=Operating%20Segment%20Information) The Group's operations are segmented into supply chain management and food supply based on internal reports reviewed by the chief operating decision maker; in H1 2025, both segments saw significant revenue declines, with food supply's gross profit near zero, all revenue and non-current assets originated from mainland China, and three major customers contributed over **10% of total revenue** during the period - The Group's operating segments include supply chain management business (based on its own cold storage and properties) and food supply business (high-end agricultural products like fruits, both domestically and internationally)[69](index=69&type=chunk) Operating Segment Revenue and Results (RMB thousand) | Segment | H1 2025 Revenue | H1 2024 Revenue | H1 2025 Segment Results | H1 2024 Segment Results | | :--- | :--- | :--- | :--- | :--- | | Food Supply Business | 6,326 | 47,032 | 7 | 620 | | Supply Chain Management Business | 6,463 | 13,531 | 1,112 | 3,819 | | **Total** | **12,789** | **60,563** | **1,119** | **4,439** | - All of the Group's revenue and non-current assets (excluding financial instruments) are located in its operating region, **mainland China**[72](index=72&type=chunk)[73](index=73&type=chunk) Major Customer Revenue Contribution (RMB thousand) | Customer | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Customer A | 6,265 | – | | Customer B | 3,179 | – | | Customer C | 1,318 | – | | Customer D | – | 19,851 | | Customer E | – | 19,581 | | **Total** | **10,762** | **39,432** | [Revenue, Other Income, Gains and Losses](index=32&type=section&id=Revenue%2C%20Other%20Income%2C%20Gains%20and%20Losses) In H1 2025, the Group's total revenue was **RMB 12.8 million**, comprising **RMB 1.8 million** from supply chain management services, **RMB 6.3 million** from food supply, and **RMB 4.6 million** from rental income; total other income, gains, and losses amounted to **RMB 3.0 million**, primarily from bank interest income and fair value changes of financial assets Revenue Analysis (RMB thousand) | Revenue Source | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Supply Chain Management: Supply Chain Services | 1,835 | 3,124 | | Food Supply | 6,326 | 47,032 | | Supply Chain Management: Rental | 4,628 | 10,407 | | **Total Revenue** | **12,789** | **60,563** | Other Income, Gains and Losses Analysis (RMB thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Bank interest income | 1,457 | 1,392 | | Fair value changes of financial assets | 1,320 | 1,132 | | Exchange (losses)/gains, net | (172) | 275 | | Others | 400 | (709) | | **Total** | **3,005** | **2,090** | - Regarding revenue recognition timing, supply chain services revenue is recognized **'over time'**, while food supply revenue is recognized **'at a point in time'**[80](index=80&type=chunk) [Loss Before Tax](index=35&type=section&id=Loss%20Before%20Tax) For the six months ended June 30, 2025, the Group's loss before tax narrowed to **RMB 2.4 million** from **RMB 3.2 million** in the prior period, primarily influenced by cost of inventories sold, depreciation, and employee benefit expenses, with a positive impact from the reversal of impairment loss on trade receivables Components of Loss Before Tax (RMB thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Cost of inventories sold | 6,319 | 46,412 | | Depreciation of property, plant and equipment | 2,831 | 2,873 | | Depreciation of investment properties | 2,904 | 2,875 | | Depreciation of right-of-use assets | 277 | 644 | | Reversal of impairment loss on trade receivables | (2,676) | (112) | | Employee benefit expenses (excluding directors' and chief executive's remuneration) | 2,460 | 3,341 | - Employee benefit expenses (excluding directors' and chief executive's remuneration) decreased from **RMB 3,341 thousand** in H1 2024 to **RMB 2,460 thousand** in H1 2025[84](index=84&type=chunk) [Income Tax](index=35&type=section&id=Income%20Tax) For the six months ended June 30, 2025, the Group recorded income tax recoverable of approximately **RMB 283 thousand**, compared to nil in the prior period, with income tax paid on a profit entity basis in the respective jurisdictions of Group members Income Tax Overview (RMB thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Current tax: Expense for the period | – | – | | Deferred tax | (283) | – | | **Total income tax recoverable for the period** | **(283)** | **–** | - The Group calculates its income tax expense for the period using the tax rate applicable to the expected total annual earnings[85](index=85&type=chunk) [Dividends](index=36&type=section&id=Dividends) The Board does not recommend the payment of a final dividend for the year ended December 31, 2024, or an interim dividend for the six months ended June 30, 2025 - The Board does **not recommend** the payment of a final dividend for the year ended December 31, 2024, or an interim dividend for the six months ended June 30, 2025[86](index=86&type=chunk) [Loss Per Share Attributable to Ordinary Equity Holders of the Parent](index=36&type=section&id=Loss%20Per%20Share%20Attributable%20to%20Ordinary%20Equity%20Holders%20of%20the%20Parent) For the six months ended June 30, 2025, the Group's basic loss per share narrowed to **0.3 cents** from **0.5 cents** in the prior period, calculated based on the loss attributable to ordinary equity holders of the parent and **650,000,000 issued ordinary shares**, with no potential dilutive ordinary shares during the period - For the six months ended June 30, 2025, the basic loss per share was **0.3 cents** (2024: **0.5 cents**)[87](index=87&type=chunk) - Loss per share is calculated based on the loss attributable to ordinary equity holders of the parent for the period and the **650,000,000 ordinary shares** in issue during the period[87](index=87&type=chunk) - The Group had **no potential dilutive ordinary shares** in issue during the period[87](index=87&type=chunk) [Property, Plant and Equipment](index=37&type=section&id=Property%2C%20Plant%20and%20Equipment) For the six months ended June 30, 2025, the Group's additions to property, plant and equipment amounted to **RMB 1.7 million**, primarily for cold storage area construction, with no transfers to investment properties or disposals, and all buildings remaining unpledged Cost of Additions to Property, Plant and Equipment (RMB thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Additions | 1,680 | 1,274 | - There were **no transfers of property, plant and equipment to investment properties or disposals** during the period[88](index=88&type=chunk) - As of June 30, 2025, **all of the Group's buildings were unpledged**[89](index=89&type=chunk) [Right-of-use Assets](index=37&type=section&id=Right-of-use%20Assets) For the six months ended June 30, 2025, the Group made no transfers of right-of-use assets to investment properties - For the six months ended June 30, 2025, the Group made **no transfers of right-of-use assets to investment properties**[90](index=90&type=chunk) [Financial Assets at Fair Value Through Profit or Loss](index=37&type=section&id=Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As of June 30, 2025, the Group's financial assets at fair value through profit or loss amounted to **RMB 9.6 million**, primarily consisting of listed equity investments in Bank of Shanghai, which are fair valued based on market quotations Financial Assets at Fair Value (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Listed equity investments | 9,588 | 8,268 | - The listed equity investments are equity investments in **Bank of Shanghai**, measured at fair value based on market quotations of the investee company[91](index=91&type=chunk) [Trade Receivables and Bills Receivable](index=38&type=section&id=Trade%20Receivables%20and%20Bills%20Receivable) As of June 30, 2025, the Group's net trade receivables and bills receivable decreased to **RMB 7.2 million** from **RMB 12.0 million** at year-end 2024; credit terms typically range from **30 to 90 days**, extendable up to **1 year** for major customers, with strict control over outstanding receivables and no significant credit concentration risk Trade Receivables and Bills Receivable (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade receivables | 25,052 | 32,447 | | Bills receivable | 2 | 3 | | Impairment allowance | (17,820) | (20,496) | | **Net amount** | **7,234** | **11,954** | - The credit period for trade receivables generally ranges from **30 to 90 days**, extendable up to **1 year** for major customers[92](index=92&type=chunk) - The Group strives to strictly control its outstanding trade receivables and has **no significant credit concentration risk**[92](index=92&type=chunk) Ageing Analysis of Trade Receivables (net of impairment allowance, RMB thousand) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 1 month | 3,544 | 10,181 | | 1 to 3 months | – | – | | 3 to 12 months | – | 76 | | Over 12 months | 3,688 | 1,694 | | **Total** | **7,232** | **11,951** | [Cash and Cash Equivalents and Restricted Term Deposits](index=40&type=section&id=Cash%20and%20Cash%20Equivalents%20and%20Restricted%20Term%20Deposits) As of June 30, 2025, the Group's cash and cash equivalents totaled **RMB 81.5 million**, with **RMB 42.2 million** denominated in RMB, which is not freely convertible but can be exchanged through authorized banks; bank balances are deposited with reputable banks and earn interest at floating rates Cash and Cash Equivalents (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | 81,520 | 79,934 | - As of June 30, 2025, RMB-denominated cash and cash equivalents amounted to **RMB 42,175 thousand**[94](index=94&type=chunk) - RMB is **not freely convertible** into other currencies but can be exchanged through banks authorized to conduct foreign exchange business[94](index=94&type=chunk) [Trade Payables](index=40&type=section&id=Trade%20Payables) As of June 30, 2025, the Group's trade payables significantly increased to **RMB 8.6 million** from **RMB 4.0 million** at year-end 2024; trade payables are interest-free with an average credit period of **three months** Trade Payables (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables | 8,587 | 3,980 | Ageing Analysis of Trade Payables (RMB thousand) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 1 month | 5,145 | 403 | | 1 to 3 months | – | 71 | | 3 to 6 months | – | 76 | | 6 to 12 months | – | – | | Over 12 months | 3,442 | 3,430 | | **Total** | **8,587** | **3,980** | - Trade payables are **interest-free**, with an average credit period of **three months**[96](index=96&type=chunk) [Capital Commitments](index=41&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group's contracted but unprovided capital commitments amounted to approximately **RMB 1.0 million**, primarily for property, plant and equipment, representing a significant decrease from **RMB 7.3 million** at year-end 2024 Capital Commitments (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Contracted but not provided for: Property, plant and equipment | 1,000 | 7,262 | [Related Party Transactions](index=42&type=section&id=Related%20Party%20Transactions) For the six months ended June 30, 2025, the Group paid **RMB 286 thousand** in office rental fees to Shanghai Automata Investment Co., Ltd., a transaction based on mutually agreed prices, with Director Ms. Kong Xiaoling having an investment in Shanghai Automata; total remuneration for key management personnel was **RMB 967 thousand** Related Party Transactions (RMB thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Office rental fees paid to Shanghai Automata | 286 | 383 | - Director **Ms. Kong Xiaoling** has an investment in Shanghai Automata Investment Co., Ltd[100](index=100&type=chunk) Key Management Personnel Remuneration (RMB thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Short-term employee benefits | 929 | 1,080 | | Pension scheme contributions | 38 | 92 | | **Total** | **967** | **1,172** | [Financial Instruments by Category](index=43&type=section&id=Financial%20Instruments%20by%20Category) As of June 30, 2025, the Group's total financial assets were **RMB 100.4 million**, comprising **RMB 9.6 million** in financial assets at fair value through profit or loss and **RMB 90.8 million** in financial assets measured at amortized cost; total financial liabilities were **RMB 10.7 million**, mainly trade payables and financial liabilities included in other payables and accrued expenses Financial Assets by Category (RMB thousand) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Financial assets at fair value through profit or loss | 9,588 | 8,268 | | Financial assets debt instruments at fair value through other comprehensive income | 2 | 3 | | Financial assets measured at amortised cost | 90,807 | 93,840 | | **Total** | **100,397** | **102,111** | Financial Liabilities by Category (RMB thousand) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables | 8,587 | 3,980 | | Financial liabilities included in other payables and accrued expenses | 2,158 | 2,089 | | **Total** | **10,745** | **6,069** | [Fair Value and Fair Value Hierarchy of Financial Instruments](index=45&type=section&id=Fair%20Value%20and%20Fair%20Value%20Hierarchy%20of%20Financial%20Instruments) The Group's financial instruments' carrying amounts approximate their fair values, with fair value measurements categorized into a three-level hierarchy where listed equity investments are Level 1 (quoted prices in active markets) and bills receivable are Level 2 (observable inputs); no transfers between fair value hierarchy levels occurred during the period for financial assets and liabilities - All carrying amounts of the Group's financial instruments approximate their fair values[106](index=106&type=chunk) - The fair value of listed equity investments is calculated based on market quotations, classified as **Level 1 measurement**[107](index=107&type=chunk)[108](index=108&type=chunk) - The fair value of bills receivable is calculated by discounting expected future cash flows, classified as **Level 2 measurement**[107](index=107&type=chunk)[108](index=108&type=chunk) - During the period, there were **no transfers** between Level 1 and Level 2, nor any transfers into or out of Level 3 for fair value measurements of financial assets and financial liabilities[111](index=111&type=chunk) [Approval of Interim Condensed Consolidated Financial Statements](index=47&type=section&id=Approval%20of%20Interim%20Condensed%20Consolidated%20Financial%20Statements) These interim condensed consolidated financial statements were approved and authorized for issue by the Board of Directors on August 29, 2025 - These interim condensed consolidated financial statements were **approved and authorized for issue by the Board of Directors on August 29, 2025**[112](index=112&type=chunk)

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | | | 致：香港交易及結算所有限公司 公司名稱: 雙樺控股有限公司 呈交日期: 2025年9月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01241 | 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 | | 0.01 | HKD | | 100,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 10,000,000,000 | HKD | | 0.01 | HKD | | 100,000,000 | 本月底法定/註冊股本總額： HKD 100,000,0 ...

Group 1 - The core viewpoint of the article is that Shuanghua Holdings (01241.HK) reported a significant decline in revenue for the first half of 2025, with a year-on-year decrease of 78.88% [1] - The company achieved a revenue of RMB 12.789 million in the first half of 2025 [1] - The loss attributable to the owners of the parent company during the period was RMB 2.115 million, an improvement from a loss of RMB 3.183 million in the same period last year [1] - The basic loss per share was RMB 0.03 [1]

Group 1 - The company, Shuanghua Holdings (01241), reported a revenue of RMB 12.789 million for the six months ending June 30, 2025, representing a year-on-year decrease of 78.88% [1] - The loss attributable to shareholders was RMB 2.115 million, which narrowed by 33.55% compared to the previous year [1] - The loss per share was 0.3 cents [1]

Group 1 - The core viewpoint of the article highlights the financial performance of Shuanghua Holdings for the six months ending June 30, 2025, indicating a significant decline in revenue and a reduction in losses [1] Group 2 - The company's revenue for the period was RMB 12.789 million, representing a year-on-year decrease of 78.88% [1] - The loss attributable to shareholders was RMB 2.115 million, which is a year-on-year narrowing of 33.55% [1] - The loss per share was reported at 0.3 cents [1]

[Company Information and Announcements](index=1&type=section&id=Company%20Information%20and%20Announcements) Shuanghua Holdings Limited (Stock Code: 1241) announced its unaudited condensed consolidated results for the six months ended June 30, 2025, primarily engaged in supply chain management and high-end agricultural product food supply [Company Overview and Announcement Statement](index=1&type=section&id=Company%20Overview%20and%20Announcement%20Statement) The company, Shuanghua Holdings Limited, reported its unaudited interim results for the six months ended June 30, 2025, focusing on supply chain management and food supply businesses - Company Name: **Shuanghua Holdings Limited** (Stock Code: **1241**)[2](index=2&type=chunk) - Reporting Period: Unaudited condensed consolidated results for the six months ended **June 30, 2025**[2](index=2&type=chunk) - Main Business: Supply chain management based on self-owned cold storage and properties, and food supply for high-end agricultural and sideline products, both domestically and internationally[7](index=7&type=chunk) [Interim Condensed Consolidated Financial Statements](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) This section presents the company's interim financial performance and position, including the statement of profit or loss and the statement of financial position [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's revenue significantly decreased to **RMB 12,789 thousand**, with gross profit falling to **RMB 1,119 thousand**, resulting in a narrower loss of **RMB 2,115 thousand** for the period Key Profit and Loss Data (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (RMB thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | 12,789 | 60,563 | (47,774) | -78.9% | | Cost of sales | (11,670) | (56,124) | 44,454 | -79.2% | | Gross profit | 1,119 | 4,439 | (3,320) | -74.8% | | Other income, gains and losses | 3,005 | 2,090 | 915 | 43.8% | | Reversal of impairment losses on trade receivables, etc. | 2,676 | 112 | 2,564 | 2289.3% | | Selling and distribution costs | (938) | (916) | (22) | 2.4% | | Administrative expenses | (8,257) | (8,896) | 639 | -7.2% | | Interest expenses | (3) | (12) | 9 | -75.0% | | Loss before tax | (2,398) | (3,183) | 785 | -24.7% | | Recoverable tax | 283 | – | 283 | N/A | | Loss and total comprehensive income for the period | (2,115) | (3,183) | 1,068 | -33.6% | | Loss per share attributable to ordinary equity holders of the parent (cents) | (0.3) | (0.5) | 0.2 | -40.0% | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets slightly increased to **RMB 279,339 thousand**, driven by higher current assets and stable cash, while current liabilities significantly rose due to trade payables Key Financial Position Data (As of June 30) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (RMB thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | **Assets** | | | | | | Total non-current assets | 169,556 | 172,569 | (3,013) | -1.7% | | Total current assets | 109,783 | 105,750 | 4,033 | 3.8% | | **Total assets** | **279,339** | **278,319** | **1,020** | **0.4%** | | **Liabilities** | | | | | | Total current liabilities | 19,487 | 16,069 | 3,418 | 21.3% | | Total non-current liabilities | 1,269 | 1,552 | (283) | -18.2% | | **Net assets** | **258,583** | **260,698** | **(2,115)** | **-0.8%** | | **Equity** | | | | | | Total equity | 258,583 | 260,698 | (2,115) | -0.8% | - Trade payables increased from **RMB 3,980 thousand** as of December 31, 2024, to **RMB 8,587 thousand** as of June 30, 2025, representing a **115.8%** increase[4](index=4&type=chunk)[30](index=30&type=chunk) [Notes to the Interim Condensed Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures for the figures presented in the interim condensed consolidated financial statements [1. Company and Group Information](index=5&type=section&id=1.%20Company%20and%20Group%20Information) Shuanghua Holdings Limited is registered in the Cayman Islands, with principal places of business in Shanghai and Anhui, China, focusing on supply chain management and food supply - Registered Place: Cayman Islands[7](index=7&type=chunk) - Principal Places of Business: Fengxian District, Shanghai, China, and Tunxi District, Huangshan City, Anhui Province, China[7](index=7&type=chunk) - Main Business: Supply chain management business based on self-owned cold storage and properties, and food supply business for high-end agricultural and sideline products, both domestically and internationally[7](index=7&type=chunk) - Ultimate Holding Company: You Shen International Group Limited (registered in the British Virgin Islands)[7](index=7&type=chunk) [2. Basis of Preparation](index=5&type=section&id=2.%20Basis%20of%20Preparation) These interim condensed consolidated financial statements are prepared in accordance with HKAS 34 and Listing Rules, primarily using the historical cost convention and presented in RMB - Basis of Preparation: Hong Kong Accounting Standard 34 "Interim Financial Reporting" and the disclosure requirements of the Listing Rules[8](index=8&type=chunk) - Measurement Basis: Primarily adopted the historical cost convention[8](index=8&type=chunk) - Presentation Currency: Renminbi (RMB)[8](index=8&type=chunk) [3. Application of Revised Hong Kong Financial Reporting Standards](index=6&type=section&id=3.%20Application%20of%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards) The accounting policies for the six months ended June 30, 2025, are consistent with the 2024 annual financial statements, with no significant impact from new or revised HKFRSs effective January 1, 2025 - Accounting Policies: Largely consistent with the 2024 annual financial statements[9](index=9&type=chunk) - Application of New Standards: Revised Hong Kong Financial Reporting Standards effective January 1, 2025 (e.g., amendments to HKAS 21), had no significant impact on the Group's accounting policies[9](index=9&type=chunk) [4. Operating Segment Information](index=6&type=section&id=4.%20Operating%20Segment%20Information) The Group's business is segmented into supply chain management and food supply, with all revenue and non-current assets derived from China - Operating Segments: Supply chain management business (based on self-owned cold storage and properties) and food supply business (agricultural and sideline products)[10](index=10&type=chunk) - Geographical Information: All revenue and non-financial instrument non-current assets are derived from China[14](index=14&type=chunk)[15](index=15&type=chunk) [Segment Revenue and Results](index=7&type=section&id=Segment%20Revenue%20and%20Results) For the six months ended June 30, 2025, food supply business revenue significantly decreased, leading to a substantial reduction in total revenue and segment results, while supply chain management's revenue proportion increased Segment Revenue and Results (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (RMB thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | | | | | | Food supply business | 6,326 | 47,032 | (40,706) | -86.5% | | Supply chain management business | 6,463 | 13,531 | (7,068) | -52.2% | | **Total Revenue** | **12,789** | **60,563** | **(47,774)** | **-78.9%** | | **Segment Results** | | | | | | Food supply business | 7 | 620 | (613) | -98.9% | | Supply chain management business | 1,112 | 3,819 | (2,707) | -70.9% | | **Total Segment Results** | **1,119** | **4,439** | **(3,320)** | **-74.8%** | [Geographical Information](index=9&type=section&id=Geographical%20Information) The Group's operating entities, all revenue, and non-financial instrument non-current assets are exclusively located in mainland China - Operating Entities Location: China[14](index=14&type=chunk) - Revenue Source: Entirely from China[14](index=14&type=chunk) - Non-current Assets Location: All located in mainland China, excluding financial instruments[15](index=15&type=chunk) [Information on Major Customers](index=9&type=section&id=Information%20on%20Major%20Customers) For the six months ended June 30, 2025, the Group's revenue from major customers shifted, with three new key contributors replacing the previous two - Major Customer Count: **Three** in 2025, compared to **two** in 2024[16](index=16&type=chunk) Major Customer Revenue Contribution (For the six months ended June 30) | Customer | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Customer A | 6,265 | – | | Customer B | 3,179 | – | | Customer C | 1,318 | – | | Customer D | – | 19,851 | | Customer E | – | 19,581 | | **Total** | **10,762** | **39,432** | - In 2025, major customers A, B, and C contributed **84.1%** of total revenue (10,762/12,789)[18](index=18&type=chunk)[3](index=3&type=chunk) - In 2024, major customers D and E contributed **65.1%** of total revenue (39,432/60,563)[18](index=18&type=chunk)[3](index=3&type=chunk) [5. Revenue, Other Income, Gains and Losses](index=9&type=section&id=5.%20Revenue%2C%20Other%20Income%2C%20Gains%20and%20Losses) The Group's total revenue significantly decreased due to reduced food supply and supply chain management (leasing) income, while other income, gains and losses increased, primarily from fair value gains on financial assets Revenue Analysis (For the six months ended June 30) | Revenue Source | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (RMB thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Supply chain management: Services | 1,835 | 3,124 | (1,289) | -41.3% | | Food supply | 6,326 | 47,032 | (40,706) | -86.5% | | Supply chain management: Leasing | 4,628 | 10,407 | (5,779) | -55.5% | | **Total Revenue** | **12,789** | **60,563** | **(47,774)** | **-78.9%** | Total Other Income, Gains and Losses (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (RMB thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Bank interest income | 1,457 | 1,392 | 65 | 4.7% | | Fair value changes of financial assets at fair value through profit or loss | 1,320 | 1,132 | 188 | 16.6% | | Exchange (losses) / gains, net | (172) | 275 | (447) | -162.5% | | Others | 400 | (709) | 1,109 | -156.4% | | **Total** | **3,005** | **2,090** | **915** | **43.8%** | [6. Loss Before Tax](index=12&type=section&id=6.%20Loss%20Before%20Tax) For the six months ended June 30, 2025, the Group's loss before tax narrowed to **RMB 2,398 thousand**, primarily due to a significant decrease in cost of inventories sold and a substantial increase in reversal of impairment losses on trade receivables Components of Loss Before Tax (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (RMB thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Cost of inventories sold | 6,319 | 46,412 | (40,093) | -86.4% | | Depreciation of property, plant and equipment | 2,831 | 2,873 | (42) | -1.5% | | Depreciation of investment properties | 2,904 | 2,875 | 29 | 1.0% | | Depreciation of right-of-use assets | 277 | 644 | (367) | -57.0% | | Reversal of impairment losses on trade receivables, etc. | (2,676) | (112) | (2,564) | 2289.3% | | Total employee benefit expenses | 2,460 | 3,341 | (881) | -26.4% | [7. Income Tax](index=13&type=section&id=7.%20Income%20Tax) For the six months ended June 30, 2025, the Group recorded **RMB 283 thousand** in recoverable tax, primarily from deferred tax, with no such item in the prior year - Total recoverable tax for 2025 was **RMB 283 thousand**, mainly from deferred tax[24](index=24&type=chunk) - There was no recoverable tax in the corresponding period of 2024[24](index=24&type=chunk) [8. Dividends](index=13&type=section&id=8.%20Dividends) The Board does not recommend a final dividend for the year ended December 31, 2024, or an interim dividend for the six months ended June 30, 2025 - No final dividend recommended for 2024[25](index=25&type=chunk) - No interim dividend recommended for 2025[25](index=25&type=chunk) [9. Loss Per Share Attributable to Ordinary Equity Holders of the Parent](index=14&type=section&id=9.%20Loss%20Per%20Share%20Attributable%20to%20Ordinary%20Equity%20Holders%20of%20the%20Parent) For the six months ended June 30, 2025, basic and diluted loss per share attributable to ordinary equity holders of the parent was **0.3 cents**, narrower than **0.5 cents** in the prior year, with the number of ordinary shares outstanding remaining unchanged - Basic and diluted loss per share: **(0.3) cents** in 2025, **(0.5) cents** in 2024[3](index=3&type=chunk) - Number of ordinary shares outstanding: **650,000,000** shares, with no potential dilutive ordinary shares during the reporting period[26](index=26&type=chunk) [10. Financial Assets at Fair Value Through Profit or Loss](index=14&type=section&id=10.%20Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As of June 30, 2025, listed equity investments in Shanghai Bank, measured at fair value, increased to **RMB 9,588 thousand** from **RMB 8,268 thousand** as of December 31, 2024 - Listed Equity Investment: Equity investment in Shanghai Bank[27](index=27&type=chunk) - Fair Value: **RMB 9,588 thousand** as of June 30, 2025, compared to **RMB 8,268 thousand** as of December 31, 2024[27](index=27&type=chunk) [11. Trade and Bills Receivables](index=15&type=section&id=11.%20Trade%20and%20Bills%20Receivables) As of June 30, 2025, net trade and bills receivables decreased to **RMB 7,234 thousand**, with a reduction in impairment provisions, but a significant increase in the proportion of receivables over 12 months old Trade and Bills Receivables (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (RMB thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Trade receivables | 25,052 | 32,447 | (7,395) | -22.8% | | Impairment provision | (17,820) | (20,496) | 2,676 | -13.1% | | **Net Amount** | **7,234** | **11,954** | **(4,720)** | **-39.5%** | - Credit Period: Generally **30 to 90 days**, extendable up to **1 year** for major customers[28](index=28&type=chunk) Aging Analysis of Trade Receivables (Net of impairment provision) | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 month | 3,544 | 10,181 | | Over 12 months | 3,688 | 1,694 | - The proportion of trade receivables over 12 months old increased from **14.2%** (1,694/11,951) as of December 31, 2024, to **51.0%** (3,688/7,232) as of June 30, 2025[29](index=29&type=chunk) [12. Trade Payables](index=17&type=section&id=12.%20Trade%20Payables) As of June 30, 2025, trade payables significantly increased to **RMB 8,587 thousand**, with notable increases in payables aged within 1 month and over 12 months - Trade Payables: **RMB 8,587 thousand** as of June 30, 2025, compared to **RMB 3,980 thousand** as of December 31, 2024, representing a **115.8%** increase[30](index=30&type=chunk) - Average Credit Period: **Three months**[30](index=30&type=chunk) Aging Analysis of Trade Payables | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 month | 5,145 | 403 | | Over 12 months | 3,442 | 3,430 | [Management Discussion and Analysis](index=18&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the Group's operational and financial performance, strategic outlook, and key financial resources [Business Review](index=18&type=section&id=Business%20Review) In the first half of 2025, the Group's sales revenue significantly declined due to global geopolitical conflicts, US tariff policies, and China's economic downturn, leading to active adjustments in product portfolios and diversification efforts - Macroeconomic Environment: Global geopolitical conflicts, US tariffs, China's economic pressure, consumption downgrade, industrial deflation[31](index=31&type=chunk) - Sales Revenue: Approximately **RMB 12.8 million** during the reporting period, a decrease of approximately **RMB 47.8 million** compared to the prior year[32](index=32&type=chunk)[38](index=38&type=chunk) - Food Supply Business Revenue: Approximately **RMB 6.3 million**, with low-margin orders cut due to consumption downgrade and rising import costs[32](index=32&type=chunk) - Loss for the Period: Loss attributable to owners of the parent was approximately **RMB 2.1 million**, narrower than **RMB 3.2 million** in the prior year, mainly due to cost and risk control[33](index=33&type=chunk)[48](index=48&type=chunk) [Outlook and Strategies](index=19&type=section&id=Outlook%20and%20Strategies) Facing complex global and domestic economic conditions, the Group will focus on diversifying its products and services and expanding into supply chain businesses for other goods and services to achieve stable development and business expansion - Macro Outlook: Complex global geopolitical landscape, uncertain US trade policies, and short-term domestic demand challenges[34](index=34&type=chunk) - Core Strategies: (i) Promoting product and service diversification; (ii) Expanding supply chain business for other goods and services[34](index=34&type=chunk) [Promoting Product and Service Diversification for Stable Business Development](index=19&type=section&id=Promoting%20Product%20and%20Service%20Diversification%20for%20Stable%20Business%20Development) The Group plans to enhance its one-stop supply chain solutions, optimize asset structure, expand food supply product lines, and broaden downstream channels to ensure stable business growth - Supply Chain Management: Consolidate existing and new customer collaborations, enhance warehousing capacity and turnover rate, and optimize asset structure[35](index=35&type=chunk) - Food Supply: Expand protein and aquatic product lines to enrich the product matrix[35](index=35&type=chunk) - Channel Expansion: Develop large and medium-sized chain supermarkets, e-commerce, and live-streaming platforms[35](index=35&type=chunk) - Brand Building: Steadily advance products and services under the "Longhua Zhen" and "Shuanghua" brands[36](index=36&type=chunk) [Expanding Supply Chain Business for Other Goods and Services to Diversify and Expand the Group's Operations](index=20&type=section&id=Expanding%20Supply%20Chain%20Business%20for%20Other%20Goods%20and%20Services%20to%20Diversify%20and%20Expand%20the%20Group%27s%20Operations) The Group intends to leverage existing resources to explore supply chain opportunities in innovative technology sectors, such as green energy, and introduce advanced power battery technology to drive sustainable growth - Expansion Direction: Supply chain business for innovative technology products and services, including technological innovation and green energy industries[37](index=37&type=chunk) - Specific Plan: Based on lithium battery recycling exploration, the Group plans to introduce global advanced power battery technology[37](index=37&type=chunk) - Goal: Develop new productive forces to drive sustained improvement in revenue scale and profitability, achieving stable and high-quality growth[37](index=37&type=chunk) [Financial Review](index=21&type=section&id=Financial%20Review) The Group's revenue and gross profit significantly declined due to consumption downgrade and rising import costs, while other income increased from financial asset gains, administrative expenses decreased, and the loss for the period narrowed - Revenue: Decreased by **78.9%** year-on-year to **RMB 12.8 million**[38](index=38&type=chunk) - Gross Profit: Decreased by **74.8%** year-on-year to **RMB 1.1 million**[40](index=40&type=chunk) - Other Income, Gains and Losses: Increased by **43.8%** year-on-year to **RMB 3.0 million**, primarily due to financial asset investment gains[42](index=42&type=chunk) - Reversal of Impairment Losses on Trade Receivables: Significantly increased to **RMB 2.7 million** year-on-year[43](index=43&type=chunk) - Administrative Expenses: Decreased by **7.2%** year-on-year to **RMB 8.3 million**, mainly due to reduced consulting fees[45](index=45&type=chunk) - Loss for the Period: Narrowed by **33.6%** year-on-year to **RMB 2.1 million**[48](index=48&type=chunk) [Revenue](index=21&type=section&id=Revenue) For the six months ended June 30, 2025, total revenue was **RMB 12.8 million**, a significant decrease from **RMB 60.6 million** in the prior year, with food supply business revenue proportion falling and supply chain management's rising Revenue by Business Segment (For the six months ended June 30) | Business Segment | 2025 (RMB thousand) | 2025 Proportion | 2024 (RMB thousand) | 2024 Proportion | | :--- | :--- | :--- | :--- | :--- | | Supply chain management business | 6,463 | 50.5% | 13,531 | 22.3% | | Food supply business | 6,326 | 49.5% | 47,032 | 77.7% | | **Total** | **12,789** | **100.0%** | **60,563** | **100.0%** | - Total revenue decreased by **78.9%** year-on-year[38](index=38&type=chunk) - Food supply business revenue decreased by **86.5%** year-on-year, while supply chain management business revenue decreased by **52.2%** year-on-year[39](index=39&type=chunk) [Gross Profit](index=21&type=section&id=Gross%20Profit) For the six months ended June 30, 2025, gross profit was **RMB 1.1 million**, a decrease of approximately **RMB 3.3 million** from the prior year, primarily due to lower sales prices and volumes, rising import costs, and near-zero gross profit from food supply - Total Gross Profit: **RMB 1.1 million**, a **74.8%** year-on-year decrease[40](index=40&type=chunk) - Main Reasons: Lower product sales prices and volumes due to consumption downgrade in China, and rising import product costs[40](index=40&type=chunk) Gross Profit by Business Segment (For the six months ended June 30) | Business Segment | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Supply chain services business | 1,112 | 3,819 | | Food supply business | 7 | 620 | | **Total** | **1,119** | **4,439** | - Food supply business gross profit decreased by **98.9%** year-on-year[41](index=41&type=chunk) [Other Income, Gains and Losses](index=22&type=section&id=Other%20Income%2C%20Gains%20and%20Losses) For the six months ended June 30, 2025, total other income, gains and losses amounted to **RMB 3.0 million**, an increase of approximately **RMB 1.0 million** from the prior year, mainly driven by increased investment gains from financial assets - Total Amount: **RMB 3.0 million**, an increase of approximately **RMB 1.0 million** year-on-year[42](index=42&type=chunk) - Main Driver: Increased investment gains from financial assets[42](index=42&type=chunk) - Fair value changes of financial assets at fair value through profit or loss increased from **RMB 1,132 thousand** to **RMB 1,320 thousand**[21](index=21&type=chunk) [Reversal of Impairment Losses on Trade Receivables under Expected Credit Loss Model](index=22&type=section&id=Reversal%20of%20Impairment%20Losses%20on%20Trade%20Receivables%20under%20Expected%20Credit%20Loss%20Model) For the six months ended June 30, 2025, the Group recorded a reversal of impairment losses on trade receivables of approximately **RMB 2.7 million**, a significant increase from **RMB 0.1 million** in the prior year - Impairment Loss Reversal: **RMB 2.7 million** (2025), **RMB 0.1 million** (2024)[43](index=43&type=chunk) - Increased by **2289.3%** year-on-year[43](index=43&type=chunk) [Selling and Distribution Costs](index=22&type=section&id=Selling%20and%20Distribution%20Costs) For the six months ended June 30, 2025, selling and distribution costs were approximately **RMB 0.9 million**, consistent with the prior year - Selling and Distribution Costs: Approximately **RMB 0.9 million**, consistent with the prior year[44](index=44&type=chunk) - Main Components: Staff costs, sales and transportation expenses, operating lease rentals, business entertainment, and travel expenses[44](index=44&type=chunk) [Administrative Expenses](index=22&type=section&id=Administrative%20Expenses) For the six months ended June 30, 2025, administrative expenses were approximately **RMB 8.3 million**, a decrease of approximately **RMB 0.6 million** from the prior year, primarily due to reduced consulting fees - Administrative Expenses: Approximately **RMB 8.3 million**, a year-on-year decrease of approximately **RMB 0.6 million**[45](index=45&type=chunk) - Main Reason: Reduced consulting fees[45](index=45&type=chunk) - Main Components: Staff costs, local taxes, depreciation, research and development expenses, and sundry expenses[45](index=45&type=chunk) [Interest Expenses](index=22&type=section&id=Interest%20Expenses) For the six months ended June 30, 2025, interest expenses were approximately **RMB 2,997**, a significant decrease from **RMB 12,469** in the prior year, primarily related to interest on lease liabilities - Interest Expenses: **RMB 2,997** (2025), **RMB 12,469** (2024)[46](index=46&type=chunk) - Decreased by **75.9%** year-on-year[46](index=46&type=chunk) - Primarily interest expenses on lease liabilities[46](index=46&type=chunk) [Recoverable Tax](index=22&type=section&id=Recoverable%20Tax) For the six months ended June 30, 2025, the Group recorded recoverable tax of approximately **RMB 283 thousand**, with no such item in the prior year - Recoverable Tax: **RMB 283 thousand** (2025), none in 2024[47](index=47&type=chunk) [Loss for the Period](index=22&type=section&id=Loss%20for%20the%20Period) For the six months ended June 30, 2025, the loss attributable to owners of the Company was approximately **RMB 2.1 million**, narrower than **RMB 3.2 million** in the prior year - Loss Attributable to Owners of the Parent: **RMB 2.1 million** (2025), **RMB 3.2 million** (2024)[48](index=48&type=chunk) - Loss narrowed by **33.6%** year-on-year[48](index=48&type=chunk) [Liquidity and Financial Resources](index=23&type=section&id=Liquidity%20and%20Financial%20Resources) The Group's net current assets slightly increased, and total cash and cash equivalents and financial assets at fair value grew steadily, with no bank borrowings, indicating a sound asset-liability structure and improved inventory management - Net Current Assets: Increased from approximately **RMB 89.7 million** as of December 31, 2024, to approximately **RMB 90.3 million** as of June 30, 2025[49](index=49&type=chunk) - Cash and Cash Equivalents and Financial Assets at Fair Value: Approximately **RMB 91.1 million** (June 30, 2025), approximately **RMB 88.2 million** (December 31, 2024)[50](index=50&type=chunk) - No Bank Borrowings[50](index=50&type=chunk) - No Material Contingent Liabilities[50](index=50&type=chunk) [Net Current Assets](index=23&type=section&id=Net%20Current%20Assets) The Group's net current assets increased from approximately **RMB 89.7 million** as of December 31, 2024, to approximately **RMB 90.3 million** as of June 30, 2025 - Net Current Assets: **RMB 90.3 million** as of June 30, 2025, compared to **RMB 89.7 million** as of December 31, 2024[49](index=49&type=chunk) - A slight increase of **0.7%**[49](index=49&type=chunk) [Financial Position and Bank Borrowings](index=23&type=section&id=Financial%20Position%20and%20Bank%20Borrowings) As of June 30, 2025, the Group's total cash and cash equivalents and financial assets at fair value were approximately **RMB 91.1 million**, an increase from the prior year, with no bank borrowings in either reporting period - Total Cash and Cash Equivalents and Financial Assets at Fair Value: **RMB 91.1 million** as of June 30, 2025, compared to **RMB 88.2 million** as of December 31, 2024[50](index=50&type=chunk) - No Bank Borrowings[50](index=50&type=chunk) - No outstanding mortgages, charges, debentures, debt securities, other loan capital, bank overdrafts or loans, other similar debts or finance lease commitments, acceptance liabilities or acceptance credits, hire purchase commitments, guarantees, or other material contingent liabilities[50](index=50&type=chunk) [Working Capital](index=23&type=section&id=Working%20Capital) For the six months ended June 30, 2025, average inventory turnover days significantly decreased to **0**, while average trade and bills receivables turnover days increased to **135**, and average trade and bills payables turnover days increased to **97** - Average Inventory Turnover Days: **0 days** in 2025, **5 days** in 2024, a significant decrease primarily due to enhanced inventory turnover management[51](index=51&type=chunk) - Average Trade and Bills Receivables Turnover Days: **135 days** in 2025, **81 days** in 2024, an increase mainly due to extended credit terms for reputable customers[51](index=51&type=chunk) - Average Trade and Bills Payables Turnover Days: **97 days** in 2025, **51 days** in 2024, an increase primarily due to more favorable terms negotiated with suppliers[52](index=52&type=chunk) [Capital Expenditure, Capital Commitments and Human Resources](index=24&type=section&id=Capital%20Expenditure%2C%20Capital%20Commitments%20and%20Human%20Resources) For the six months ended June 30, 2025, capital expenditure increased, primarily for cold storage construction, while capital commitments significantly decreased; the Group employs 42 staff, with remuneration based on market conditions and compliance with social security regulations - Capital Expenditure: Approximately **RMB 1.7 million** (2025), primarily for cold storage area construction, an increase from **RMB 1.3 million** in 2024[53](index=53&type=chunk) - Capital Commitments: Approximately **RMB 1.0 million** (2025), primarily for cold storage area construction, a significant decrease from **RMB 7.3 million** in 2024[53](index=53&type=chunk) - Employee Count: **42** employees[53](index=53&type=chunk) - Remuneration: Approximately **RMB 2.5 million** (excluding directors' and chief executive's remuneration)[53](index=53&type=chunk) - Benefit Expenses: Approximately **RMB 0.4 million**[54](index=54&type=chunk) - Compliance with social security and housing provident fund contribution regulations[54](index=54&type=chunk) [Material Investments, Material Acquisitions and Disposals](index=25&type=section&id=Material%20Investments%2C%20Material%20Acquisitions%20and%20Disposals) For the six months ended June 30, 2025, the Group had no material investments, acquisitions, or disposals of subsidiaries, associates, and joint ventures - No material investments, acquisitions, or disposals[56](index=56&type=chunk) [Foreign Exchange Risk](index=25&type=section&id=Foreign%20Exchange%20Risk) The Group's operations in China, with RMB as its functional and presentation currency, are primarily exposed to transactional currency risk from HKD and USD against RMB, with no current hedging intention but ongoing monitoring - Functional and Presentation Currency: Renminbi (RMB)[57](index=57&type=chunk) - Primary Foreign Exchange Risk: Fluctuations in HKD against RMB and USD against RMB exchange rates[57](index=57&type=chunk) - No current intention to hedge, but management will continue to monitor[57](index=57&type=chunk) [Contingent Liabilities](index=25&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no material contingent liabilities - No material contingent liabilities[58](index=58&type=chunk) [Pledged Assets](index=25&type=section&id=Pledged%20Assets) As of June 30, 2025, the Group had no pledged assets - No pledged assets[59](index=59&type=chunk) [Interim Dividend](index=25&type=section&id=Interim%20Dividend) The Board does not recommend an interim dividend for the six months ended June 30, 2025 - No interim dividend recommended[60](index=60&type=chunk) [Events After the Reporting Period](index=25&type=section&id=Events%20After%20the%20Reporting%20Period) No material events requiring disclosure occurred after the reporting period - No material post-reporting events[61](index=61&type=chunk) [Other Information and Corporate Governance](index=26&type=section&id=Other%20Information%20and%20Corporate%20Governance) This section details the company's compliance with corporate governance codes, policies on board diversity, and the functions of its key committees [Purchase, Sale or Redemption of the Company's Listed Securities or Sale of Treasury Shares](index=26&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities%20or%20Sale%20of%20Treasury%20Shares) For the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities or sold any treasury shares - No purchase, sale, or redemption of listed securities[62](index=62&type=chunk) - No sale of treasury shares[62](index=62&type=chunk) [Compliance with Corporate Governance Code](index=26&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Company has adopted the Corporate Governance Code, with the only deviation being the combined roles of Chairman and CEO held by Mr. Zheng Ping, which the Board believes enhances decision-making efficiency without impairing power balance - Corporate Governance Code adopted[63](index=63&type=chunk) - Deviation from Code Provision C.2.1: The roles of Chairman and Chief Executive Officer are combined and held by Mr. Zheng Ping[64](index=64&type=chunk) - The Board believes this structure does not impair the balance of power and enhances decision-making efficiency[64](index=64&type=chunk) [Compliance with Model Code](index=26&type=section&id=Compliance%20with%20Model%20Code) The Company has adopted the Model Code for directors' securities transactions, and all directors confirmed compliance during the reporting period - Model Code adopted as the code of conduct for directors' securities transactions[65](index=65&type=chunk) - All directors confirmed compliance with the Model Code[65](index=65&type=chunk) [Competition and Conflicts of Interest](index=27&type=section&id=Competition%20and%20Conflicts%20of%20Interest) As of the announcement date, no director or their associates directly or indirectly held any business interests competing or potentially competing with the Group's business, nor were there any other conflicts of interest - No directors or their associates have competing or conflicting business interests[66](index=66&type=chunk) [Nomination Committee](index=27&type=section&id=Nomination%20Committee) The Company has established a Nomination Committee, chaired by Mr. Chen Lifan, responsible for recommending directors and management personnel appointments to the Board - Nomination Committee established[67](index=67&type=chunk) - Responsibilities: To make recommendations to the Board on the appointment of directors and management personnel[67](index=67&type=chunk) - Chairman: Mr. Chen Lifan[67](index=67&type=chunk) [Board Diversity Policy](index=27&type=section&id=Board%20Diversity%20Policy) The Board has adopted and revised a diversity policy to enhance company performance and leadership structure by considering various aspects such as gender, age, and professional experience, with appointment decisions based on overall candidate qualities - Board Diversity Policy adopted and revised[68](index=68&type=chunk) - Objectives: To enhance company performance, optimize leadership structure, improve talent quality, and promote long-term development[68](index=68&type=chunk) - Diversity Aspects: Gender, age, ethnicity, cultural and educational background, professional skills, occupational experience, management level, and length of service[68](index=68&type=chunk) [Remuneration Committee](index=27&type=section&id=Remuneration%20Committee) The Company has established a Remuneration Committee, chaired by Ms. Guo Ying, responsible for recommending remuneration policies and structures for directors and senior management, and determining specific remuneration packages - Remuneration Committee established[69](index=69&type=chunk) - Responsibilities: To make recommendations to the Board on the remuneration policy and structure for directors and senior management, and to determine specific remuneration packages[69](index=69&type=chunk) - Chairman: Ms. Guo Ying[69](index=69&type=chunk) [Audit Committee](index=28&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors and chaired by Mr. He Binhui, reviews financial reporting, internal control, and risk management systems, and has deemed them adequate and effective after reviewing the interim results - Composed of three independent non-executive directors, chaired by Mr. He Binhui[70](index=70&type=chunk) - Responsibilities: To review the financial reporting process, internal control, and risk management systems[70](index=70&type=chunk) - Reviewed the unaudited consolidated results for the period[71](index=71&type=chunk) - Believes the Group's internal control and risk management systems are adequate and effective[70](index=70&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=28&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This interim results announcement has been published on the HKEX website and the Company's official website, with the interim report to be dispatched to shareholders and uploaded to relevant websites in due course - Announcement published on the HKEX website (www.hkex.com.hk) and the Company's official website (www.shshuanghua.com)[72](index=72&type=chunk) - Interim report will be dispatched to shareholders and uploaded to websites in due course[72](index=72&type=chunk)

Core Viewpoint - The company anticipates a decline in revenue for the first half of 2025, projecting approximately RMB 12.8 million, compared to RMB 60.6 million for the first half of 2024, alongside a reduction in net loss after tax [1] Revenue Expectations - Projected revenue for the first half of 2025 is approximately RMB 12.8 million [1] - Revenue for the first half of 2024 was approximately RMB 60.6 million [1] - The expected decrease in revenue is attributed to a sluggish overall economic outlook in China and a downgrade in consumer spending [1] Net Loss Projections - Anticipated net loss after tax for the first half of 2025 is approximately RMB 2.1 million [1] - The net loss after tax for the first half of 2024 was approximately RMB 3.2 million [1] - The reduction in net loss is primarily due to the reversal of impairment losses on trade receivables [1] Strategic Adjustments - The company is actively adjusting its product and service mix to adapt to changes in supply and demand in the market [1] - Cost and risk control measures are being implemented in response to the economic challenges [1]

Core Viewpoint - The company expects a significant decline in revenue and a reduction in net loss for the six months ending June 30, 2025, primarily due to a sluggish overall economic outlook in China and changes in consumer behavior [1] Revenue Summary - The estimated revenue for the six months ending June 30, 2025, is approximately RMB 12.8 million, a decrease from RMB 60.6 million for the same period in 2024 [1] - The revenue decline is attributed to a general economic downturn in China, leading to downgraded consumer spending, which has impacted both the sales prices and volumes of the company's products and services [1] Net Loss Summary - The expected net loss after tax for the six months ending June 30, 2025, is approximately RMB 2.1 million, an improvement from a net loss of RMB 3.2 million for the same period in 2024 [1] - The reduction in net loss is primarily due to the reversal of impairment losses on trade receivables [1] Strategic Adjustments - The company is actively adjusting its product and service mix to adapt to changes in supply and demand dynamics, focusing on cost and risk control measures [1]