30 September 2025 Dear Registered Shareholders, Miko International Holdings Limited (the "Company") – Notice of Publication of Interim Report 2025 (the "Current Corporate Communications") The Current Corporate Communications of the Company have been published in English and Chinese languages and are available on the website of The Stock Exchange of Hong Kong Limited ("HKEX") at www.hkexnews.hk and the Company's website at www.redkids.com. If you are a new registered shareholder (i.e. if you previously have ...

[Company Information](index=4&type=section&id=Company%20Information) This section provides essential corporate details including the board of directors, registered offices, share registrars, auditor, and investor relations contact information [Board of Directors and Committees](index=4&type=section&id=Board%20of%20Directors%20and%20Committees) This section lists the company's board members and their roles in the audit, remuneration, and nomination committees, along with authorized representatives and the company secretary - The Board of Directors comprises four executive directors (Ding Peiji, Ding Peiyuan, Liu Min, Yu Jianjun) and three independent non-executive directors (Wu Chengjian, Chen Jun, Guo Zheng)[6](index=6&type=chunk) - Mr. Wu Chengjian serves as the Chairman of the Audit Committee, Mr. Guo Zheng as the Chairman of the Remuneration Committee, and Mr. Chen Jun as the Chairman of the Nomination Committee[6](index=6&type=chunk) [Registered Office and Principal Places of Business](index=4&type=section&id=Registered%20Office%20and%20Principal%20Places%20of%20Business) The company is registered in the Cayman Islands, with its principal place of business in Quanzhou, Fujian, China, and a main place of business in Hong Kong - The registered office is located at Cricket Square, Cayman Islands[6](index=6&type=chunk) - The head office and principal place of business in China are located at No. 168 Chongrong Street, Economic and Technological Development Zone, Quanzhou, Fujian Province[6](index=6&type=chunk) - The principal place of business in Hong Kong is located at Room 1601, Ho King Commercial Centre, 2–16 Fa Yuen Street, Mongkok, Kowloon[6](index=6&type=chunk) [Cayman Islands Share Registrar and Hong Kong Share Registrar](index=5&type=section&id=Cayman%20Islands%20Share%20Registrar%20and%20Hong%20Kong%20Share%20Registrar) This section provides contact details for the company's share registrars in the Cayman Islands and Hong Kong - The Cayman Islands share registrar is Suntera (Cayman) Limited[7](index=7&type=chunk) - The Hong Kong share registrar is Hong Kong Central Share Registrar Limited[7](index=7&type=chunk) [Auditor and Investor Relations](index=5&type=section&id=Auditor%20and%20Investor%20Relations) The company's auditor is BDO Limited, and investor relations contact information and the company website are provided - The auditor is BDO Limited[7](index=7&type=chunk) - Investor relations contact number is (86) 595 2469 7156, email is ir@redkids.com, and the company website is www.redkids.com[7](index=7&type=chunk) [Management Discussion and Analysis](index=6&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews the company's business performance, financial results, working capital, liquidity, capital structure, and risk management for the period [Business Review and Outlook](index=8&type=section&id=Business%20Review%20and%20Outlook) In the first half of 2025, the Group achieved significant revenue growth of **179.0%** by expanding into new supply chain management businesses, despite a challenging Chinese economy and cautious consumer spending 2025 H1 vs 2024 H1 Performance Comparison | Metric | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | | Revenue | 289.9 | 103.9 | +179.0% | | Net Loss | 4.5 | 1.1 | +309.1% | - The mainland Chinese economy faced challenges in H1 2025, with weak demand in wholesale and retail markets due to changes in consumer spending patterns, decreased confidence, and reduced income[11](index=11&type=chunk) - The Group has commenced new supply chain management business for bulk commodity trading products and expects to expand its business scope to include apparel, industrial, chemical products, and food import/export in 2025[11](index=11&type=chunk)[12](index=12&type=chunk) - Gross profit margin declined due to market conditions and changes in product mix; the Group took actions to preserve cash and strengthen liquidity, strictly managing operating, marketing, and financing costs[12](index=12&type=chunk) [Financial Review](index=9&type=section&id=Financial%20Review) The Group's revenue surged by **179.0%** to **RMB 289.9 million** in H1 2025, primarily driven by new supply chain management business contributing **82.5%** of revenue, but gross profit declined due to higher cost of sales, resulting in an expanded loss after tax 2025 H1 Key Financial Indicators Comparison | Metric | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | | Revenue | 289.9 | 103.9 | +179.0% | | Cost of Sales | 279.1 | 91.5 | +205.0% | | Gross Profit | 10.8 | 12.4 | -12.9% | | Gross Profit Margin | 3.7% | 11.9% | -8.2 percentage points | | Other Income | 0.8 | 1.9 | -57.9% | | Selling and Distribution Expenses | 8.1 | 8.6 | -5.9% | | Administrative and Other Operating Expenses | 7.7 | 6.6 | +17.3% | | Finance Costs | 0.3 | 0.3 | - | | Income Tax Expense | 0.1 | 0 | - | | Loss After Tax | 4.5 | 1.1 | +309.1% | - In H1 2025, revenue from wholesale business of children's wear and other apparel-related products was approximately **RMB 50.8 million**, accounting for approximately **17.5%** of the Group's revenue[13](index=13&type=chunk) - In H1 2025, revenue from supply chain management business for bulk commodity trading products was approximately **RMB 239.1 million**, accounting for **82.5%** of the Group's revenue[13](index=13&type=chunk) - The decrease in selling and distribution expenses was primarily due to lower advertising and marketing-related expenses given the business environment[19](index=19&type=chunk) [Working Capital Management](index=10&type=section&id=Working%20Capital%20Management) As of June 30, 2025, the Group's net current assets increased to **RMB 125.9 million**, and the current ratio improved to **2.6 times**, with significant reductions in turnover days for trade receivables, inventories, and trade payables Working Capital Indicators Comparison | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net Current Assets (RMB million) | 125.9 | 87.1 | | Current Ratio | 2.6 times | 2.2 times | Turnover Days Comparison | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Trade Receivables | 65 days | 219 days | | Inventories | 20 days | 64 days | | Trade Payables | 8 days | 26 days | [Liquidity and Capital Resources](index=11&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the Group's cash and cash equivalents significantly increased to **RMB 121.7 million**, with no bank borrowings, and a net increase in cash from financing activities due to new share placements Liquidity and Capital Resources Comparison | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 121.7 | 39.7 | | Bank Borrowings | 0 | 17.0 | | Gearing Ratio | Not applicable | 12.8% (December 31, 2024) | Cash Flow Comparison | Cash Flow Source | 2025 H1 (RMB million) | 2024 H1 (RMB million) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 49.3 | 67.8 | | Net Cash from Investing Activities | 0.2 | 0.3 (primarily interest received) | | Net Cash from Financing Activities | 30.9 | 18.3 | | Net Increase in Cash and Cash Equivalents | 80.4 | 86.3 | - The increase in net cash from financing activities primarily resulted from proceeds from the placement of new shares and the issuance of shares under the share option scheme[26](index=26&type=chunk) [Capital Structure and Fundraising Activities](index=12&type=section&id=Capital%20Structure%20and%20Fundraising%20Activities) In May 2025, the company completed a share placement, raising approximately **HK$41.9 million** net, intended for establishing a cross-border B2B platform, smart customs system, channel expansion, marketing, staff expansion, and general working capital - On May 26, 2025, the company entered into a placing agreement with a placing agent to place up to **31,635,200 placing shares** at **HK$1.35 per share**[30](index=30&type=chunk) - The placing price represented a discount of approximately **15.09%** to the closing price on May 26, 2025, and approximately **14.77%** to the average closing price for the five trading days immediately preceding the announcement date[30](index=30&type=chunk) Use of Proceeds from Share Placement (as of June 30, 2025) | Purpose | Planned Amount (HK$ million) | Percentage of Total Net Proceeds | Actual Usage (HK$ million) | | :--- | :--- | :--- | :--- | | Establishment of a multi-language cross-border B2B platform and smart customs clearance system | 7.0 | 16.7% | – | | Channel development and marketing | 10.0 | 23.9% | – | | Expansion of the Group's workforce to broaden business scope | 6.0 | 14.3% | – | | General working capital | 18.9 | 45.1% | – | | **Total** | **41.9** | **100.0%** | **–** | [Financial Risk Management](index=13&type=section&id=Financial%20Risk%20Management) The company implements treasury policies to control operations and reduce borrowing costs, ensuring sufficient cash and bank financing, with management deeming currency and exchange rate risks to be insignificant due to RMB-denominated primary business - Treasury policies aim to maintain sufficient cash and bank financing to fund daily operations and short-term funding requirements[34](index=34&type=chunk) - The Group's majority of monetary assets and liabilities are denominated in RMB, and management considers the currency risk exposure to be insignificant[34](index=34&type=chunk) - Interest rate risk primarily arises from bank borrowings, but as the Group mainly operates in mainland China, the Directors believe there is no significant exchange rate risk[34](index=34&type=chunk) [Capital Commitments and Contingent Liabilities](index=13&type=section&id=Capital%20Commitments%20and%20Contingent%20Liabilities) As of June 30, 2025, the Group had no significant capital commitments or contingent liabilities - As of June 30, 2025, the Group had no significant capital commitments or contingent liabilities[35](index=35&type=chunk) [Pledge of Assets](index=13&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group had no properties or prepaid lease payments pledged for bank loans, a change from December 31, 2024, when approximately **RMB 9.7 million** of such assets were pledged - As of June 30, 2025, no properties and prepaid lease payments were pledged for bank loans[36](index=36&type=chunk) - As of December 31, 2024, properties and prepaid lease payments with a net book value of approximately **RMB 9.7 million** were pledged[36](index=36&type=chunk) [Material Investments and Significant Acquisitions and Disposals of Subsidiaries](index=13&type=section&id=Material%20Investments%20and%20Significant%20Acquisitions%20and%20Disposals%20of%20Subsidiaries) For the six months ended June 30, 2025, the Group made no other material investments, significant acquisitions, or disposals - For the six months ended June 30, 2025, the Group made no other material investments, significant acquisitions, or disposals[37](index=37&type=chunk) [Investments Held in Foreign Currencies and Hedging](index=13&type=section&id=Investments%20Held%20in%20Foreign%20Currencies%20and%20Hedging) For the six months ended June 30, 2025, the Group held no investments denominated in foreign currencies, and its working capital or liquidity was not significantly affected by exchange rate fluctuations - For the six months ended June 30, 2025, the Group held no investments denominated in foreign currencies[38](index=38&type=chunk) - The Group's working capital or liquidity was not subject to any significant difficulties or impacts due to exchange rate fluctuations[38](index=38&type=chunk) [Employees and Remuneration Policy](index=13&type=section&id=Employees%20and%20Remuneration%20Policy) The Group's remuneration policy aims to attract, retain, and motivate talent, with compensation determined by job nature, position, and market levels, employing approximately **310 full-time staff** with total employee costs of **RMB 11.7 million** in H1 2025 - The remuneration policy aims to attract, retain, and motivate talent, with performance-based compensation reflecting market levels[39](index=39&type=chunk) - As of June 30, 2025, the Group employed approximately **310 full-time employees**[39](index=39&type=chunk) Total Employee Costs Comparison | Metric | 2025 H1 (RMB million) | 2024 H1 (RMB million) | | :--- | :--- | :--- | | Total Employee Costs | 11.7 | 11.6 | [Corporate Governance and Other Information](index=14&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section details the company's adherence to corporate governance codes, directors' securities transactions, audit committee review, dividend policy, public float, and directors' and substantial shareholders' interests [Corporate Governance Code](index=14&type=section&id=Corporate%20Governance%20Code) The company is committed to high corporate governance standards, adopting the Listing Rules' Corporate Governance Code, with minor deviations regarding the Chairman/CEO role and management reporting frequency, which the Board believes do not impair power balance - The company has adopted the Corporate Governance Code as set out in Appendix 14 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[41](index=41&type=chunk) - Deviation from Code Provision A.2.1: The Chairman (Mr. Ding Peiji) also serves as the Chief Executive Officer, an arrangement the Board believes ensures consistent leadership direction[41](index=41&type=chunk) - Deviation from Code Provision C.1.2: Management does not provide monthly updates to the Board, but will do so when appropriate[42](index=42&type=chunk) [Model Code for Securities Transactions by Directors](index=14&type=section&id=Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The company has adopted the Model Code for Securities Transactions by Directors as set out in Appendix C3 of the Listing Rules, and all directors confirmed full compliance during H1 2025 - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules[43](index=43&type=chunk) - All Directors confirmed full compliance with the required standards of dealing as set out in the Model Code during H1 2025[43](index=43&type=chunk) [Update on Directors' Information under Rule 13.51B(1) of the Listing Rules](index=14&type=section&id=Update%20on%20Directors'%20Information%20under%20Rule%2013.51B(1)%20of%20the%20Listing%20Rules) No other information required disclosure under Listing Rule 13.51B(1) during the reporting period and up to the date of this interim report, beyond what has already been disclosed - During the reporting period and up to the date of this interim report, no other information was required to be disclosed under Listing Rule 13.51B(1)[44](index=44&type=chunk) [Audit Committee and Review of Unaudited Interim Results](index=15&type=section&id=Audit%20Committee%20and%20Review%20of%20Unaudited%20Interim%20Results) The Audit Committee, established under Listing Rule 3.21, is responsible for reviewing financial reporting, internal controls, and risk management, and has reviewed the unaudited interim results for H1 2025, deeming them compliant with applicable accounting standards and Listing Rules - The Audit Committee comprises Mr. Wu Chengjian (Chairman), Mr. Chen Jun, and Mr. Guo Zheng[45](index=45&type=chunk) - The Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025, and considers them to be in compliance with applicable accounting standards and the Listing Rules[45](index=45&type=chunk) [Interim Dividend](index=15&type=section&id=Interim%20Dividend) The Board resolved not to declare any interim dividend for the first half of 2025, consistent with the first half of 2024 - The Board resolved not to declare any interim dividend for H1 2025 (H1 2024: nil)[46](index=46&type=chunk) [Sufficiency of Public Float](index=15&type=section&id=Sufficiency%20of%20Public%20Float) The directors confirm that, as of the date of this announcement, the company has maintained a sufficient public float of over **25%** of its issued share capital as required by the Listing Rules - The Directors confirm that the company has maintained a sufficient public float of over **25%** of its issued share capital as required by the Listing Rules as of the date of this announcement[47](index=47&type=chunk) [Directors' and Chief Executive's Interests in Securities](index=15&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20in%20Securities) As of June 30, 2025, Mr. Ding Peiji and Mr. Ding Peiyuan held interests in company shares and share options, with Mr. Ding Peiji holding approximately **11.5%** through a controlled corporation and as beneficial owner, and Mr. Ding Peiyuan holding approximately **2.36%** Directors' Long Positions in the Company (as of June 30, 2025) | Director Name | Nature of Interest | Capacity | Number of Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | :--- | | Mr. Ding Peiji | Long Position | Interest in controlled corporation | 24,817,669 | 11.29% | | | | Beneficial owner | 373,200 | 0.17% | | | | Beneficial owner (Share Options) | 90,000 | 0.04% | | Mr. Ding Peiyuan | Long Position | Interest in controlled corporation | 4,231,200 | 1.92% | | | | Beneficial owner (Share Options) | 960,000 | 0.44% | - Mr. Ding Peiji wholly owns and controls Huazhi Holdings Investment Limited and is therefore deemed to be interested in all shares held by Huazhi[51](index=51&type=chunk) - Mr. Ding Peiyuan wholly owns and controls Rightful Style Limited and is therefore deemed to be interested in all shares held by Rightful Style[51](index=51&type=chunk) [Substantial Shareholders' Interests and Short Positions](index=17&type=section&id=Substantial%20Shareholders'%20Interests%20and%20Short%20Positions) As of June 30, 2025, substantial shareholders included Huazhi Holdings Investment Limited (controlled by Mr. Ding Peiji), Rightful Style Limited (controlled by Mr. Ding Peiyuan), and Goldrun Limited (controlled by Mr. Chen Xinfu), holding approximately **11.29%**, **1.92%**, and **9.42%** of the company's shares, respectively Substantial Shareholders' Long Positions in the Company (as of June 30, 2025) | Name/Designation | Nature of Interest | Capacity | Number of Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | :--- | | Huazhi Holdings Investment Limited | Long Position | Beneficial owner | 24,817,669 | 11.29% | | Mr. Ding Peiji | Long Position | Interest in controlled corporation | 24,817,669 | 11.29% | | | | Beneficial owner | 373,200 | 0.17% | | | | Beneficial owner (Share Options) | 90,000 | 0.04% | | Rightful Style Limited | Long Position | Beneficial owner | 4,231,200 | 1.92% | | Mr. Ding Peiyuan | Long Position | Interest in controlled corporation | 4,231,200 | 1.92% | | | | Beneficial owner (Share Options) | 960,000 | 0.44% | | Goldrun Limited | Long Position | Beneficial owner | 20,704,000 | 9.42% | | Mr. Chen Xinfu | Long Position | Interest in controlled corporation | 20,704,000 | 9.42% | - Huazhi Holdings Investment Limited is wholly owned and controlled by Mr. Ding Peiji[52](index=52&type=chunk) - Rightful Style Limited is wholly owned and controlled by Mr. Ding Peiyuan, an executive Director[53](index=53&type=chunk) - Goldrun Limited is wholly owned by Mr. Chen Xinfu[61](index=61&type=chunk) [Directors' Interests in Contracts](index=18&type=section&id=Directors'%20Interests%20in%20Contracts) No director had a significant interest in any material contract entered into by the company or its holding company, subsidiaries, or fellow subsidiaries at June 30, 2025, or at any time during the period - No director had a significant interest in any material contract entered into by the company or its holding company, subsidiaries, or fellow subsidiaries at June 30, 2025, or at any time during the period[57](index=57&type=chunk) [Contracts with Controlling Shareholders](index=18&type=section&id=Contracts%20with%20Controlling%20Shareholders) Neither the company nor any of its subsidiaries entered into any material contracts with the company's controlling shareholders or their subsidiaries during the period - Neither the company nor any of its subsidiaries entered into any material contracts with the company's controlling shareholders or their subsidiaries during the period[58](index=58&type=chunk) [Equity-Settled Share-Based Payments](index=18&type=section&id=Equity-Settled%20Share-Based%20Payments) The company adopted a share option scheme in 2013 to reward and retain eligible participants, which expired in 2023, with **6,300,000 share options** remaining unexercised at **HK$1.07 per share** as of June 30, 2025 - The share option scheme was adopted on December 27, 2013, to reward and retain eligible participants[60](index=60&type=chunk) - The share option scheme expired on December 27, 2023, and no further share options can be granted thereafter[60](index=60&type=chunk) - The maximum number of shares that may be issued upon exercise of all options shall not exceed **10%** of the shares in issue on the Listing Date (i.e., **8,000,000 shares**)[62](index=62&type=chunk) Details of Share Option Movements (as of June 30, 2025) | Name/Category | Unexercised as of Jan 1, 2025 | Granted during Period | Exercised during Period | Cancelled during Period | Unexercised as of June 30, 2025 | Exercise Price (HK$) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Directors | 2,220,000 | – | (900,000) | – | 1,230,000 | 1.07 | | Employees | 2,580,000 | – | – | – | 2,580,000 | 1.07 | | Others | 3,200,000 | – | (800,000) | – | 2,400,000 | 1.07 | | **Total** | **8,000,000** | **–** | **(1,700,000)** | **–** | **6,300,000** | **1.07** | [Acknowledgement](index=20&type=section&id=Acknowledgement) The Board expresses sincere gratitude to the management team and employees for their contributions and dedication, and thanks shareholders and business partners for their strong support - The Board extends its sincere gratitude to the management team and employees for their contributions and dedication[68](index=68&type=chunk) - Appreciation is also extended to shareholders and business partners for their strong support to the Group[68](index=68&type=chunk) [Events After Reporting Period](index=21&type=section&id=Events%20After%20Reporting%20Period) As of the date of this report, the Group had no significant events after the reporting period requiring disclosure - As of the date of this report, the Group had no significant events after the reporting period requiring disclosure[69](index=69&type=chunk) [Unaudited Condensed Consolidated Interim Financial Statements](index=22&type=section&id=Unaudited%20Condensed%20Consolidated%20Interim%20Financial%20Statements) This section presents the unaudited condensed consolidated interim financial statements, including the statement of profit or loss, financial position, changes in equity, and cash flows for the period [Unaudited Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income](index=22&type=section&id=Unaudited%20Condensed%20Consolidated%20Interim%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group reported revenue of **RMB 289,908 thousand**, gross profit of **RMB 10,780 thousand**, a loss for the period of **RMB 4,522 thousand**, and basic and diluted loss per share of **RMB 2.37 cents** Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income (for the six months ended June 30) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 289,908 | 103,903 | | Cost of Sales | (279,128) | (91,492) | | Gross Profit | 10,780 | 12,411 | | Other Income | 786 | 1,896 | | Selling and Distribution Expenses | (8,066) | (8,571) | | Administrative and Other Operating Expenses | (7,722) | (6,583) | | Operating Loss | (4,134) | (780) | | Loss Before Tax | (4,407) | (1,054) | | Income Tax Expense | (115) | – | | Loss for the Period Attributable to Owners of the Company | (4,522) | (1,054) | | Total Comprehensive Loss for the Period | (6,244) | (2,812) | | Loss Per Share (RMB cents) | (2.37) | (0.64) | [Unaudited Condensed Consolidated Interim Statement of Financial Position](index=23&type=section&id=Unaudited%20Condensed%20Consolidated%20Interim%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets were **RMB 250,565 thousand**, net current assets were **RMB 125,850 thousand**, and total equity was **RMB 169,853 thousand** Condensed Consolidated Interim Statement of Financial Position (as of June 30) | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current Assets | 45,339 | 46,810 | | Current Assets | 205,226 | 159,248 | | Current Liabilities | 79,376 | 72,191 | | Net Current Assets | 125,850 | 87,057 | | Total Assets Less Current Liabilities | 171,189 | 133,867 | | Non-current Liabilities | 1,336 | 1,391 | | Net Assets | 169,853 | 132,476 | | Total Equity | 169,853 | 132,476 | [Unaudited Condensed Consolidated Interim Statement of Changes in Equity](index=24&type=section&id=Unaudited%20Condensed%20Consolidated%20Interim%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, the loss for the period attributable to owners of the company was **RMB 4,522 thousand**, with total comprehensive loss of **RMB 2,800 thousand**, and total equity increased to **RMB 169,853 thousand** due to share placements and share option exercises Condensed Consolidated Interim Statement of Changes in Equity (for the six months ended June 30) | Equity Item | Balance as of Jan 1, 2025 (RMB thousand) | Loss for the Period (RMB thousand) | Other Comprehensive Loss (RMB thousand) | Shares Issued under Share Option Scheme (RMB thousand) | Shares Issued from Placement (RMB thousand) | Balance as of June 30, 2025 (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Share Capital | 15,654 | – | – | 157 | 2,902 | 18,713 | | Share Premium | 319,573 | – | – | 2,501 | 35,588 | 357,662 | | Accumulated Losses | (423,376) | (4,522) | – | – | – | (427,898) | | **Total Equity** | **132,476** | **(4,522)** | **1,722** | **1,687** | **38,490** | **169,853** | - In H1 2025, loss for the period was **RMB 4,522 thousand**, and other comprehensive loss was **RMB 1,722 thousand**[77](index=77&type=chunk) - Share capital increased by **RMB 157 thousand** and share premium increased by **RMB 2,501 thousand** due to shares issued under the share option scheme[77](index=77&type=chunk) - Share capital increased by **RMB 2,902 thousand** and share premium increased by **RMB 35,588 thousand** due to shares issued from placement[77](index=77&type=chunk) [Unaudited Condensed Consolidated Interim Statement of Cash Flows](index=25&type=section&id=Unaudited%20Condensed%20Consolidated%20Interim%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash from operating activities was **RMB 49,285 thousand**, from investing activities was **RMB 154 thousand**, and from financing activities was **RMB 30,910 thousand**, resulting in a net increase in cash and cash equivalents of **RMB 80,349 thousand**, with an ending balance of **RMB 121,731 thousand** Condensed Consolidated Interim Statement of Cash Flows (for the six months ended June 30) | Cash Flow Source | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 49,285 | 67,806 | | Net Cash from Investing Activities | 154 | 347 | | Net Cash from Financing Activities | 30,910 | 18,269 | | Net Increase in Cash and Cash Equivalents | 80,349 | 86,422 | | Cash and Cash Equivalents at January 1 | 39,655 | 39,721 | | Effect of Exchange Rate Changes on Foreign Currencies | 1,727 | (1,758) | | Cash and Cash Equivalents at June 30 | 121,731 | 124,385 | - Net cash from financing activities primarily resulted from net proceeds of **RMB 38,490 thousand** from the issuance of new placing shares[78](index=78&type=chunk) - Repayment of bank loans of **RMB 17,000 thousand** resulted in a zero bank loan balance[78](index=78&type=chunk) [Notes to the Unaudited Condensed Consolidated Interim Financial Statements](index=26&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Interim%20Financial%20Statements) This section provides detailed notes to the unaudited condensed consolidated interim financial statements, covering general information, basis of preparation, accounting policy changes, segment information, and specific financial items [General Information](index=26&type=section&id=General%20Information) The company, a limited liability entity registered in the Cayman Islands, primarily engages in children's apparel design, manufacturing, and wholesale, and has expanded into supply chain management, with Huazhi Holdings Investment Limited and Mr. Ding Peiji as its direct and ultimate controlling parties - The company is a limited liability company incorporated in the Cayman Islands[80](index=80&type=chunk) - The Group is principally engaged in the design, manufacture, and wholesale of children's wear and has commenced supply chain management business, including bulk commodity trading products in mainland China[80](index=80&type=chunk) - The direct and ultimate controlling parties are Huazhi Holdings Investment Limited and Mr. Ding Peiji, respectively[80](index=80&type=chunk) [Basis of Preparation of Consolidated Financial Statements](index=26&type=section&id=Basis%20of%20Preparation%20of%20Consolidated%20Financial%20Statements) The unaudited condensed consolidated interim financial statements are prepared in accordance with applicable disclosure provisions of the HKEX Listing Rules and IAS 34, reviewed by the Audit Committee, and involve management judgments, estimates, and assumptions - The unaudited condensed consolidated interim financial statements are prepared in accordance with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, including compliance with International Accounting Standard 34 "Interim Financial Reporting"[83](index=83&type=chunk) - The unaudited interim results have been reviewed by the company's Audit Committee[84](index=84&type=chunk) - Management is required to make judgments, estimates, and assumptions that affect the application of policies and the reported amounts of assets, liabilities, income, and expenses[83](index=83&type=chunk) [Changes in Accounting Policies](index=27&type=section&id=Changes%20in%20Accounting%20Policies) The condensed consolidated interim financial statements are prepared using the historical cost convention and incorporate IFRS amendments effective January 1, 2025, which had no significant impact on the Group's financial position or performance - The condensed consolidated interim financial statements are prepared on the historical cost basis, except for certain properties and financial instruments measured at fair value[85](index=85&type=chunk) - The Group has first applied the amendments to International Financial Reporting Standards issued by the International Accounting Standards Board that are mandatorily effective for annual periods beginning on or after January 1, 2025[86](index=86&type=chunk) - The application of the amendments to IFRS accounting standards had no significant impact on the Group's financial position and performance for the current and prior periods[86](index=86&type=chunk) [Revenue and Segment Information](index=28&type=section&id=Revenue%20and%20Segment%20Information) The Group operates in wholesale (children's apparel) and supply chain management (commodity trading) segments, with the latter contributing most revenue in H1 2025, all from mainland China customers and recognized at a point in time - The Group's operating businesses and reportable segments include: (i) wholesale business: design, manufacture, and wholesale of children's wear and other apparel-related products; and (ii) supply chain management business: bulk commodity trading products[88](index=88&type=chunk)[92](index=92&type=chunk) Segment Revenue and Results (for the six months ended June 30) | Segment | 2025 Revenue (RMB thousand) | 2024 Revenue (RMB thousand) | 2025 Segment Results (RMB thousand) | 2024 Segment Results (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Wholesale Business | 50,824 | 103,903 | (4,538) | (1,313) | | Supply Chain Management Business | 239,084 | – | 1,668 | – | | **Total** | **289,908** | **103,903** | **(2,870)** | **(1,313)** | - All the Group's revenue from external customers and substantially all non-current assets are based in mainland China[96](index=96&type=chunk) Disaggregation of Revenue from Contracts with Customers (for the six months ended June 30) | Product Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Sales of children's wear and other apparel-related products | 50,824 | 103,903 | | Sales of bulk trading commodities | 239,084 | – | | **Total** | **289,908** | **103,903** | - The original expected duration of all revenue contracts is one year or less, and revenue is recognized at a point in time[99](index=99&type=chunk)[100](index=100&type=chunk) [Seasonality of Operations](index=31&type=section&id=Seasonality%20of%20Operations) The Group's children's apparel sales are seasonal, with spring/summer products sold in the first half and higher-priced autumn/winter products in the second half, typically resulting in lower first-half revenue and performance - The Group typically sells spring/summer children's wear products in the first half of the year and autumn/winter children's wear products in the second half of the year[101](index=101&type=chunk) - The selling prices of autumn/winter children's wear products are generally higher than those of spring/summer children's wear products, thus the revenue and results reported in the first half of the year are usually lower[101](index=101&type=chunk) [Other Income](index=31&type=section&id=Other%20Income) For the six months ended June 30, 2025, other income, primarily interest and rental income, totaled **RMB 786 thousand**, a decrease from **RMB 1,896 thousand** in the prior year Other Income (for the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest income | 156 | 486 | | Rental income | 580 | 580 | | Others | 50 | 830 | | **Total** | **786** | **1,896** | [Loss Before Tax](index=31&type=section&id=Loss%20Before%20Tax) For the six months ended June 30, 2025, the loss before tax was **RMB 4,407 thousand**, influenced by finance costs, employee costs, and cost of inventories sold, with employee costs remaining stable and depreciation decreasing Components of Loss Before Tax (for the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Finance costs | 273 | 274 | | Total employee costs | 11,662 | 11,627 | | Depreciation of property, plant and equipment | 1,418 | 2,678 | | Amortisation of right-of-use assets | 50 | 44 | | Cost of inventories sold | 279,128 | 91,492 | - Employee costs include contributions to defined contribution retirement plans, salaries, wages, and other benefits[104](index=104&type=chunk) - Cost of inventories sold includes approximately **RMB 5,937 thousand** (H1 2024: **RMB 6,786 thousand**) related to employee costs[104](index=104&type=chunk) [Taxation](index=32&type=section&id=Taxation) Income tax expense of **RMB 115 thousand** was recorded in H1 2025, mainly for China corporate income tax at **25%**, with no income tax payable in the Cayman Islands, British Virgin Islands, or on taxable profits in Hong Kong Taxation (for the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current tax – China corporate income tax | 115 | – | | Deferred tax – origination of temporary differences | – | – | | **Total** | **115** | **–** | - The Group's principal subsidiaries in mainland China are subject to corporate income tax at a rate of **25%**[109](index=109&type=chunk) - The Group is not subject to any income tax in the Cayman Islands or the British Virgin Islands and did not earn any assessable profits subject to profits tax in Hong Kong[109](index=109&type=chunk) [Loss Per Share](index=32&type=section&id=Loss%20Per%20Share) For the six months ended June 30, 2025, basic loss per share expanded to **RMB 2.37 cents** from **RMB 0.64 cents** in the prior year, with diluted loss per share being the same due to the anti-dilutive effect of share options Loss Per Share (for the six months ended June 30) | Metric | 2025 (RMB cents) | 2024 (RMB cents) | | :--- | :--- | :--- | | Basic Loss Per Share | (2.37) | (0.64) | | Diluted Loss Per Share | (2.37) | (0.64) | - Basic loss per share is calculated based on the loss for the period attributable to owners of the company of approximately **RMB 4,522,000** and the weighted average number of ordinary shares of approximately **190,460,000** shares[107](index=107&type=chunk) - The company's share options for the six months ended June 30, 2024 and 2025 had an anti-dilutive effect, thus the diluted loss per share is the same as the basic loss per share[108](index=108&type=chunk) [Property, Plant and Equipment and Right-of-Use Assets](index=33&type=section&id=Property,%20Plant%20and%20Equipment%20and%20Right-of-Use%20Assets) For the six months ended June 30, 2025, the Group acquired plant and machinery at a cost of **RMB 2 thousand**, and as of June 30, 2025, no buildings or right-of-use assets were pledged, unlike December 31, 2024 - For the six months ended June 30, 2025, the Group acquired plant and machinery at a cost of **RMB 2,000**[112](index=112&type=chunk) - As of June 30, 2025, no buildings (December 31, 2024: net book value of **RMB 7,466,000**) were pledged as collateral for the Group's bank loans[112](index=112&type=chunk) - As of June 30, 2025, no right-of-use assets (December 31, 2024: net book value of **RMB 2,061,000**) were pledged as collateral for the Group's bank loans[112](index=112&type=chunk) [Trade Receivables](index=33&type=section&id=Trade%20Receivables) As of June 30, 2025, the Group's total trade receivables significantly decreased to **RMB 51,787 thousand** from **RMB 88,515 thousand** at December 31, 2024, with the majority aged within 90 days Ageing Analysis of Trade Receivables (as of reporting period end) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 90 days | 34,318 | 53,428 | | 90–120 days | 7,069 | 6,830 | | 120 days to 180 days | 3,887 | 19,748 | | 180 days to 1 year | 6,513 | 8,509 | | **Total** | **51,787** | **88,515** | [Prepayments, Deposits and Other Receivables](index=34&type=section&id=Prepayments,%20Deposits%20and%20Other%20Receivables) As of June 30, 2025, total prepayments, deposits, and other receivables amounted to **RMB 15,611 thousand**, primarily comprising prepayments to suppliers of **RMB 13,937 thousand** Prepayments, Deposits and Other Receivables (as of reporting period end) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Other receivables | 1,678 | 227 | | Deposits paid | – | 34 | | Less: Provision for expected credit losses | (4) | (1) | | Prepayments to suppliers | 13,937 | 13,327 | | **Total** | **15,611** | **13,587** | [Trade and Other Payables](index=34&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, trade payables due within 3 months were **RMB 6,361 thousand**. Other payables included approximately **RMB 48,948 thousand** owed to directors, which is unsecured, interest-free, and repayable on demand Ageing Analysis of Trade Payables (as of reporting period end) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 3 months | 6,361 | 2,694 | - Other payables include the carrying amount of approximately **RMB 48,948,000** (December 31, 2024: **RMB 47,951,000**) due to directors, which is unsecured, interest-free, and repayable on demand[115](index=115&type=chunk) [Bank Borrowings](index=35&type=section&id=Bank%20Borrowings) As of June 30, 2025, the Group had no bank borrowings, a change from December 31, 2024, when **RMB 17,000 thousand** in secured fixed-rate bank loans were outstanding, collateralized by buildings and right-of-use assets and guaranteed by directors and an independent third party Bank Borrowings (as of reporting period end) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Bank borrowings – secured | – | 17,000 | | Fixed-rate bank borrowings | – | 17,000 | Pledged Assets (as of reporting period end) | Pledged Assets | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Buildings | – | 7,466 | | Right-of-use assets | – | 2,061 | | **Total** | **–** | **9,527** | - The bank borrowings as of December 31, 2024, were guaranteed by the company's directors and an independent third party[116](index=116&type=chunk) - The effective annual interest rate for fixed-rate bank borrowings as of December 31, 2024, was **3.7%**[118](index=118&type=chunk) [Capital, Reserves and Dividends](index=37&type=section&id=Capital,%20Reserves%20and%20Dividends) As of June 30, 2025, issued share capital comprised **219,846,000 shares** totaling **RMB 18,713 thousand**, increasing due to share placements and share option exercises, with no dividends paid or proposed during the period Authorized and Issued Share Capital (as of June 30/December 31) | Item | 2025 Number of Shares | 2025 RMB thousand | 2024 Number of Shares | 2024 RMB thousand | | :--- | :--- | :--- | :--- | :--- | | Issued and fully paid at January 1 | 186,514,000 | 15,654 | 158,176,000 | 13,026 | | Shares issued under share option scheme | 1,700,000 | 157 | – | – | | Shares issued from placement | 31,632,000 | 2,902 | 28,338,000 | 2,628 | | **As of June 30/December 31** | **219,846,000** | **18,713** | **186,514,000** | **15,654** | - On June 13, 2025, the company placed **31,632,000 placing shares** at a placing price of **HK$1.35 per share**, raising net proceeds of approximately **RMB 38,490,000**[119](index=119&type=chunk) - Under the Companies Law of the Cayman Islands, funds in the company's share premium account may be distributed to shareholders, subject to certain conditions immediately following the proposed dividend distribution date[120](index=120&type=chunk) - No dividends were paid or proposed for the six months ended June 30, 2025 and 2024[121](index=121&type=chunk) [Fair Value of Financial Assets and Liabilities Not Measured at Fair Value](index=38&type=section&id=Fair%20Value%20of%20Financial%20Assets%20and%20Liabilities%20Not%20Measured%20at%20Fair%20Value) As of June 30, 2025, and December 31, 2024, the carrying amounts of the Group's financial instruments measured at cost or amortized cost did not materially differ from their fair values - As of June 30, 2025, and December 31, 2024, the carrying amounts of the Group's financial instruments measured at cost or amortized cost did not materially differ from their fair values[123](index=123&type=chunk) [Capital Commitments Contracted But Not Provided For in the Unaudited Interim Financial Report](index=38&type=section&id=Capital%20Commitments%20Contracted%20But%20Not%20Provided%20For%20in%20the%20Unaudited%20Interim%20Financial%20Report) As of June 30, 2025, the Group had no capital commitments contracted or provided for - As of June 30, 2025, no capital commitments were contracted or provided for (December 31, 2024: nil)[124](index=124&type=chunk) [Significant Related Party Transactions](index=38&type=section&id=Significant%20Related%20Party%20Transactions) Apart from other disclosures in the financial statements, the Group engaged in significant related party transactions for the six months ended June 30, 2025, including a bank loan guarantee provided by Mr. Ding Peiji, which was no longer outstanding as of June 30, 2025 - Apart from other disclosures in the unaudited financial statements, the Group entered into significant related party transactions for the six months ended June 30, 2025 and 2024[125](index=125&type=chunk) - As of June 30, 2025, no secured bank borrowings (December 31, 2024: **RMB 17,000,000**) were guaranteed by Mr. Ding Peiji[126](index=126&type=chunk)

智通财经APP讯，米格国际控股(01247)公布，于2025年9月18日因非公司董事根据认股权计划行使认股 权而发行80万股股份，每股发行价1.07港元。 ...

米格国际控股(01247)公布，于2025年9月18日因非公司董事根据认股权计划行使认股权而发行80万股股 份，每股发行价1.07港元。 ...

FF305 翌日披露報表 (股份發行人 ── 已發行股份或庫存股份變動、股份購回及/或在場内出售庫存股份) 表格類別： 股票 狀態： 新提交 公司名稱： 米格國際控股有限公司 呈交日期： 2025年9月18日 (註7) (i) 上市發行人已收取其在是次股份發行或庫存股份出售或轉讓應得的全部款項； 如上市發行人的已發行股份或庫存股份出現變動而須根據《香港聯合交易所有限公司（「香港聯交所」）證券上市規則》(「《主板上市規則》」)第13.25A條 / 《香港聯合交易所有限公司GEM證券 上市規則》(「《GEM上市規則》」)第17.27A條作出披露，必須填妥第一章節 。 | 第一章節 | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 | 是 | | | | 證券代號 (如上市) | 01247 | 說明 | | | | | | | | | A. 已發行股份或庫存股份變動 | | | | | | | | | | | | ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年8月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 米格國際控股有限公司 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) | 01247 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 1,000,000,000 | HKD | | 0.1 | HKD | | 100,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 1,000,000,000 | HKD | | 0.1 | HKD | | 100,000,000 | 本月底法定/註冊股本 ...

Group 1 - The company reported a revenue of 290 million, representing a year-on-year increase of 179% [1] - The loss attributable to shareholders for the period was 4.522 million, an increase of 329% compared to the previous year [1] - The loss per share was 2.37 cents [1] Group 2 - Despite the significant increase in overall sales performance, the gross profit margin was affected by market conditions and the product mix sold during the period [1] - The company continues to face challenges in the current market environment [1]

智通财经APP讯，米格国际控股(01247)发布截至2025年6月30日止6个月中期业绩，该集团取得收益2.9 亿元，同比增加179%;公司股东应占期内亏损452.2万元，同比增加329%;每股亏损2.37分。 本时期仍然充满挑战，尽管随着出现供应链管理业务，截至2025年6月30日止6个月期间的整体销售表现 较2024年同期增加179.0%，但毛利率反映因受市场状况及截至2025年6月30日止6个月期间出售产品组 合影响而导致利润减少。 ...

[Company Information and Announcement Summary](index=1&type=section&id=Company%20Information%20and%20Announcement%20Summary) This section provides an overview of the company's basic information and the disclaimer for the interim results announcement [Announcement Statement](index=1&type=section&id=Announcement%20Statement) The Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited disclaim responsibility for this announcement's content, accuracy, completeness, and any resulting losses - Hong Kong Exchanges and the Stock Exchange are not responsible for the content, accuracy, or completeness of this announcement, and assume no liability for any losses[1](index=1&type=chunk) [Company Basic Information](index=1&type=section&id=Company%20Basic%20Information) MIG International Holdings Limited (Stock Code: 1247) announces its unaudited condensed consolidated interim results for the six months ended June 30, 2025, with comparative figures for 2024 - MIG International Holdings Limited (Stock Code: 1247) announces its unaudited condensed consolidated interim results for the six months ended June 30, 2025[2](index=2&type=chunk) - The Group's results are presented with comparative figures for the corresponding period in 2024[2](index=2&type=chunk) [Financial Statements](index=2&type=section&id=Financial%20Statements) This section presents the condensed consolidated interim financial statements, including the statement of profit or loss and financial position [Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's revenue significantly increased by **179.0%** to RMB289,908 thousands, but gross profit decreased by **13.1%** to RMB10,780 thousands, leading to an expanded loss for the period of RMB4,522 thousands Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income (Key Metrics) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 289,908 | 103,903 | +179.0% | | Cost of sales | (279,128) | (91,492) | +205.1% | | Gross profit | 10,780 | 12,411 | -13.1% | | Operating loss | (4,134) | (780) | +430.0% | | Loss before tax | (4,407) | (1,054) | +318.1% | | Loss for the period attributable to owners of the Company | (4,522) | (1,054) | +329.0% | | Basic and diluted loss per share (RMB cents) | (2.37) | (0.64) | +270.3% | - Exchange differences on translation of financial statements of overseas subsidiaries, a component of other comprehensive income, narrowed slightly to **negative RMB1,722 thousands** from negative RMB1,758 thousands in the prior year[4](index=4&type=chunk) [Condensed Consolidated Interim Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets and net assets increased, with a significant rise in cash and cash equivalents and a notable decrease in trade receivables, improving net current assets and total equity Condensed Consolidated Interim Statement of Financial Position (Key Metrics) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 45,339 | 46,810 | -3.1% | | Current assets | 205,226 | 159,248 | +29.0% | | Inventories | 16,097 | 17,491 | -7.9% | | Trade receivables | 51,787 | 88,515 | -41.5% | | Cash and cash equivalents | 121,731 | 39,655 | +207.0% | | Current liabilities | 79,376 | 72,191 | +10.0% | | Trade and other payables | 79,273 | 55,089 | +43.9% | | Bank loans | – | 17,000 | -100.0% | | Net current assets | 125,850 | 87,057 | +44.6% | | Net assets | 169,853 | 132,476 | +28.2% | | Total equity | 169,853 | 132,476 | +28.2% | - The Group's bank loans have been fully repaid, indicating an optimized debt structure[5](index=5&type=chunk) [Notes to the Financial Statements](index=4&type=section&id=Notes%20to%20the%20Financial%20Statements) This section provides detailed notes to the condensed consolidated interim financial statements, covering general information, basis of preparation, accounting policies, and segment information [General Information](index=4&type=section&id=General%20Information) The Company, incorporated in the Cayman Islands, primarily engages in the design, manufacturing, and wholesale of children's wear, and has expanded into supply chain management, including bulk commodity trading in Mainland China - The Company is incorporated in the Cayman Islands, with its principal place of business in Hong Kong[6](index=6&type=chunk) - The Group primarily engages in the design, manufacturing, and wholesale of children's wear and other apparel-related products, and has commenced supply chain management business, including bulk commodity trading products in Mainland China[6](index=6&type=chunk) - The Company's direct and ultimate controlling parties are Huazhi Holdings Investment Limited and Mr. Ding Peiji, respectively[6](index=6&type=chunk) [Basis of Preparation of Condensed Consolidated Financial Statements](index=4&type=section&id=Basis%20of%20Preparation%20of%20Condensed%20Consolidated%20Financial%20Statements) The condensed consolidated interim financial statements are prepared in accordance with the HKEX Listing Rules and IAS 34, reviewed by the Audit Committee, but not audited by an independent auditor - The condensed consolidated interim financial statements are prepared in accordance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and International Accounting Standard 34 "Interim Financial Reporting"[9](index=9&type=chunk) - The statements have been reviewed by the Company's Audit Committee but have not been audited by an independent auditor[10](index=10&type=chunk) - Financial information is presented in RMB and includes comparative data for the financial year ended December 31, 2024[7](index=7&type=chunk)[10](index=10&type=chunk) [Review and Changes in Accounting Policies](index=5&type=section&id=Review%20and%20Changes%20in%20Accounting%20Policies) The interim results have been reviewed by the Audit Committee but not audited by an independent auditor, and the adoption of IFRS amendments had no material impact on financial position or performance - The condensed consolidated interim results have been reviewed by the Company's Audit Committee but have not been audited by an independent auditor[10](index=10&type=chunk) - The Group has initially applied the amendments to International Financial Reporting Standards issued by the IASB, which are mandatorily effective for annual periods beginning on or after January 1, 2025[12](index=12&type=chunk) - The application of the amendments to IFRS had no material impact on the Group's financial position and performance for the current and prior periods[12](index=12&type=chunk) [Revenue and Segment Information](index=5&type=section&id=Revenue%20and%20Segment%20Information) The Group reports two operating segments: wholesale business (children's wear and apparel-related products) and supply chain management (bulk commodity trading products), with the latter contributing the majority of revenue in H1 2025, driving overall revenue growth despite a decline in wholesale business revenue - The Group has two reportable segments: wholesale business (children's wear and other apparel-related products) and supply chain management business (bulk commodity trading products)[14](index=14&type=chunk) Segment Revenue and Results (Six Months Ended June 30) | Segment | 2025 Revenue (RMB thousands) | 2024 Revenue (RMB thousands) | 2025 Results (RMB thousands) | 2024 Results (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Wholesale business | 50,824 | 103,903 | (4,538) | (1,313) | | Supply chain management business | 239,084 | – | 1,668 | – | | **Total** | **289,908** | **103,903** | **(2,870)** | **(1,313)** | - The supply chain management business contributed **RMB239,084 thousands** in revenue in H1 2025, with no comparable business in H1 2024[16](index=16&type=chunk) [Overview of Operating Segments](index=5&type=section&id=Overview%20of%20Operating%20Segments) The Group's business is divided into two reportable segments, wholesale business (children's wear and apparel-related products) and supply chain management business (bulk commodity trading products), based on strategic decisions and resource allocation - The Group determines its operating segments based on reports used for making strategic decisions[13](index=13&type=chunk) - Operating segments include wholesale business (design, manufacturing, and sale of children's wear and other apparel-related products) and supply chain management business (bulk commodity trading products)[14](index=14&type=chunk) [Segment Revenue and Results](index=6&type=section&id=Segment%20Revenue%20and%20Results) In H1 2025, the supply chain management business generated RMB239,084 thousands in revenue and RMB1,668 thousands in results, while the wholesale business saw declining revenue and an expanded loss of RMB4,538 thousands Segment Revenue and Results (Six Months Ended June 30) | Segment | 2025 Revenue (RMB thousands) | 2024 Revenue (RMB thousands) | 2025 Results (RMB thousands) | 2024 Results (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Wholesale business | 50,824 | 103,903 | (4,538) | (1,313) | | Supply chain management business | 239,084 | – | 1,668 | – | | **Total** | **289,908** | **103,903** | **(2,870)** | **(1,313)** | - All segment revenue is generated from external customers and recognized at a point in time[16](index=16&type=chunk) - Segment results represent the loss recorded by each segment, excluding unallocated other income, central administrative costs, and finance costs[17](index=17&type=chunk) [Segment Assets and Liabilities](index=7&type=section&id=Segment%20Assets%20and%20Liabilities) As of June 30, 2025, the Group's total assets increased to RMB250,565 thousands, driven by significant growth in supply chain management assets, while wholesale business assets slightly decreased Segment Assets and Liabilities (As of June 30) | Indicator | Wholesale business (June 30, 2025) | Wholesale business (Dec 31, 2024) | Supply chain management business (June 30, 2025) | Supply chain management business (Dec 31, 2024) | Total Assets (June 30, 2025) | Total Assets (Dec 31, 2024) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Segment assets (RMB thousands) | 133,119 | 150,260 | 64,382 | 51,589 | 197,501 | 201,849 | | Segment liabilities (RMB thousands) | 15,410 | 29,879 | 5,848 | 118 | 21,258 | 29,997 | - Unallocated assets significantly increased from **RMB4,209 thousands** as of December 31, 2024, to **RMB53,064 thousands** as of June 30, 2025[18](index=18&type=chunk) - Total assets increased from **RMB206,058 thousands** as of December 31, 2024, to **RMB250,565 thousands** as of June 30, 2025[18](index=18&type=chunk) [Other Segment Information](index=7&type=section&id=Other%20Segment%20Information) Capital expenditure and depreciation for the wholesale business both significantly decreased, while depreciation and amortization for the supply chain management business began to emerge Other Segment Information (Six Months Ended June 30) | Indicator | Wholesale business (2025) | Wholesale business (2024) | Supply chain management business (2025) | Supply chain management business (2024) | Total (2025) | Total (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Capital expenditure* (RMB thousands) | 2 | 2,246 | – | – | 2 | 2,246 | | Depreciation of property, plant and equipment (RMB thousands) | 1,378 | 2,678 | 40 | – | 1,418 | 2,678 | | Amortisation of right-of-use assets (RMB thousands) | 50 | 44 | – | – | 50 | 44 | | Net reversal of expected credit loss provision for trade and other receivables (RMB thousands) | (70) | (67) | (18) | – | (88) | (67) | - Capital expenditure for the wholesale business significantly decreased from **RMB2,246 thousands** in 2024 to **RMB2 thousands** in 2025[19](index=19&type=chunk) - The supply chain management business recorded **RMB40 thousands** in depreciation of property, plant and equipment for the first time in 2025[19](index=19&type=chunk) [Geographical Information](index=7&type=section&id=Geographical%20Information) All of the Group's revenue from external customers and the majority of its non-current assets are concentrated in Mainland China - All of the Group's revenue from external customers and the majority of its non-current assets are based in Mainland China[20](index=20&type=chunk) [Major Customer Information](index=8&type=section&id=Major%20Customer%20Information) In H1 2025, customers D, E, and F from the supply chain management business became major customers, while customers A, B, and C from the wholesale business in H1 2024 are no longer major customers Revenue from Single Customers Contributing Over 10% of Group Revenue (RMB thousands) | Customer | Business Type | 2025 | 2024 | | :--- | :--- | :--- | :--- | | Customer A | Wholesale business | Not applicable* | 12,719 | | Customer B | Wholesale business | Not applicable* | 11,980 | | Customer C | Wholesale business | Not applicable* | 25,246 | | Customer D | Supply chain management business | 58,972 | Not applicable* | | Customer E | Supply chain management business | 19,661 | Not applicable* | | Customer F | Supply chain management business | 31,160 | Not applicable* | - In H1 2025, customers D, E, and F from the supply chain management business became the Group's major customers[21](index=21&type=chunk) - In H1 2024, customers A, B, and C from the wholesale business were major customers, but are no longer applicable in H1 2025[21](index=21&type=chunk)[22](index=22&type=chunk) [Disaggregation of Revenue from Contracts with Customers and Timing of Recognition](index=8&type=section&id=Disaggregation%20of%20Revenue%20from%20Contracts%20with%20Customers%20and%20Timing%20of%20Recognition) In H1 2025, revenue from sales of bulk trading commodities was RMB239,084 thousands, while revenue from sales of children's wear and other apparel-related products was RMB50,824 thousands, with all revenue recognized at a point in time Disaggregation of Revenue from Contracts with Customers (Six Months Ended June 30) | Product Type | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Sales of children's wear and other apparel-related products | 50,824 | 103,903 | | Sales of bulk trading commodities | 239,084 | – | | **Total** | **289,908** | **103,903** | - All revenue is recognized at a point in time[23](index=23&type=chunk) - The Group does not disclose information about remaining performance obligations for customer contracts, as the original expected duration of all revenue contracts is one year or less[23](index=23&type=chunk) [Other Income](index=9&type=section&id=Other%20Income) Other income for H1 2025 was RMB786 thousands, a significant decrease from RMB1,896 thousands in H1 2024, primarily due to reduced interest and other income Other Income (Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest income | 156 | 486 | | Rental income | 580 | 580 | | Others | 50 | 830 | | **Total** | **786** | **1,896** | - Interest income decreased from **RMB486 thousands** in 2024 to **RMB156 thousands** in 2025[24](index=24&type=chunk) - Other income decreased from **RMB830 thousands** in 2024 to **RMB50 thousands** in 2025[24](index=24&type=chunk) [Loss Before Tax](index=9&type=section&id=Loss%20Before%20Tax) Loss before tax expanded to RMB4,407 thousands in H1 2025, mainly due to a significant increase in cost of sales and a decrease in gross profit, despite reductions in staff costs and depreciation Loss Before Tax Components (Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Finance costs | 273 | 274 | | Staff costs | 11,662 | 11,627 | | Depreciation of property, plant and equipment | 1,418 | 2,678 | | Amortisation of right-of-use assets | 50 | 44 | | Cost of inventories sold | 279,128 | 91,492 | - Cost of inventories sold significantly increased from **RMB91,492 thousands** in 2024 to **RMB279,128 thousands** in 2025[25](index=25&type=chunk) - Depreciation of property, plant and equipment decreased from **RMB2,678 thousands** in 2024 to **RMB1,418 thousands** in 2025[25](index=25&type=chunk) [Finance Costs](index=9&type=section&id=Finance%20Costs) Finance costs for H1 2025 remained largely stable at RMB273 thousands compared to H1 2024, primarily consisting of bank loan interest Finance Costs (Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest on bank loans | 264 | 274 | | Interest on lease liabilities | 9 | – | | **Total** | **273** | **274** | [Staff Costs](index=9&type=section&id=Staff%20Costs) Total staff costs for H1 2025 remained largely stable at RMB11,662 thousands compared to H1 2024, with an increase in contributions to defined contribution retirement plans Staff Costs (Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Contributions to defined contribution retirement plans | 1,885 | 1,489 | | Salaries, wages and other benefits | 9,777 | 10,138 | | **Total** | **11,662** | **11,627** | [Other Items](index=9&type=section&id=Other%20Items) Other major expenses include a significant increase in cost of inventories sold, alongside reduced depreciation and design and development expenses Other Items (Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 1,418 | 2,678 | | Amortisation of right-of-use assets | 50 | 44 | | Net reversal of expected credit loss provision for trade receivables | (88) | (67) | | Design and development expenses | 393 | 528 | | Cost of inventories sold | 279,128 | 91,492 | - Cost of inventories sold includes amounts related to staff costs, which were **RMB5,937 thousands** in 2025 and **RMB6,786 thousands** in 2024[25](index=25&type=chunk) [Taxation](index=10&type=section&id=Taxation) In H1 2025, a China corporate income tax expense of RMB115 thousands was recorded, compared to no income tax expense in H1 2024, primarily due to the 25% income tax rate applicable to Mainland China subsidiaries Taxation (Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current tax – China corporate income tax | 115 | – | | Deferred tax – origination of temporary differences | – | – | | **Total** | **115** | **–** | - The Group is not subject to income tax in the Cayman Islands or the British Virgin Islands[29](index=29&type=chunk) - The applicable income tax rate for all of the Group's subsidiaries in Mainland China is **25%**[29](index=29&type=chunk) [Loss Per Share](index=10&type=section&id=Loss%20Per%20Share) Basic and diluted loss per share for H1 2025 significantly expanded to RMB2.37 cents, compared to RMB0.64 cents in H1 2024, primarily due to increased loss for the period and a higher weighted average number of ordinary shares Loss Per Share (Six Months Ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Loss for the period attributable to owners of the Company (RMB thousands) | 4,522 | 1,054 | | Weighted average number of ordinary shares (thousands) | 190,460 | 163,441 | | Basic and diluted loss per share (RMB cents) | (2.37) | (0.64) | - The Company's share options for the six months ended June 30, 2024 and 2025, had an anti-dilutive effect, thus diluted loss per share is the same as basic loss per share[28](index=28&type=chunk) [Basic Loss Per Share](index=10&type=section&id=Basic%20Loss%20Per%20Share) Basic loss per share is RMB2.37 cents, calculated based on a loss for the period attributable to owners of the Company of RMB4,522 thousands and a weighted average of 190,460 thousands ordinary shares - Basic loss per share is **RMB2.37 cents**, based on a loss for the period attributable to owners of the Company of approximately **RMB4,522,000**[27](index=27&type=chunk) - The weighted average number of ordinary shares is approximately **190,460,000** shares[27](index=27&type=chunk) [Diluted Loss Per Share](index=10&type=section&id=Diluted%20Loss%20Per%20Share) Diluted loss per share is the same as basic loss per share for the period, as share options had an anti-dilutive effect - The Company's share options for the six months ended June 30, 2024 and 2025, had an anti-dilutive effect[28](index=28&type=chunk) - Therefore, diluted loss per share is the same as basic loss per share[28](index=28&type=chunk) [Tax Rate Information](index=10&type=section&id=Tax%20Rate%20Information) The Group is not subject to income tax in the Cayman Islands and British Virgin Islands, no Hong Kong profits tax provision is made, and Mainland China subsidiaries are subject to a 25% corporate income tax rate - The Group is not subject to any income tax in the Cayman Islands or the British Virgin Islands[29](index=29&type=chunk) - No provision for Hong Kong profits tax has been made as the Group did not earn any assessable profits subject to Hong Kong profits tax for the six months ended June 30, 2024 and 2025[29](index=29&type=chunk) - The applicable income tax rate for all of the Group's subsidiaries in Mainland China is **25%**[29](index=29&type=chunk) [Trade Receivables](index=11&type=section&id=Trade%20Receivables) As of June 30, 2025, total trade receivables decreased to RMB51,787 thousands, a **41.5%** reduction from December 31, 2024, primarily due to significant collection of amounts within 90 days Ageing Analysis of Trade Receivables (RMB thousands) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 90 days | 34,318 | 53,428 | | 90–120 days | 7,069 | 6,830 | | 120 days to 180 days | 3,887 | 19,748 | | 180 days to 1 year | 6,513 | 8,509 | | **Total** | **51,787** | **88,515** | - Total trade receivables decreased from **RMB88,515 thousands** as of December 31, 2024, to **RMB51,787 thousands** as of June 30, 2025[30](index=30&type=chunk) - Trade receivables aged within 90 days significantly decreased, indicating improved collection efficiency[30](index=30&type=chunk) [Trade and Other Payables](index=11&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, trade payables within 3 months increased to RMB6,361 thousands, and amounts due to directors within other payables slightly increased Ageing Analysis of Trade Payables (RMB thousands) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 3 months | 6,361 | 2,694 | - Other payables include an amount due to directors of approximately **RMB48,948 thousands** as of June 30, 2025, which is unsecured, interest-free, and repayable on demand[31](index=31&type=chunk) [Capital, Reserves and Dividends](index=12&type=section&id=Capital,%20Reserves%20and%20Dividends) The Group's share capital increased due to share placing and exercise of share options, share premium is distributable to shareholders, but no dividends were paid for the period - The Company's share capital increased due to share placing and the exercise of share options under the share option scheme[33](index=33&type=chunk) - Funds in the share premium account are distributable to shareholders, subject to the Company being able to pay its debts as they fall due immediately following the date of the proposed distribution[34](index=34&type=chunk) - No dividends were paid or proposed for the six months ended June 30, 2025 and 2024[34](index=34&type=chunk) [Share Capital](index=12&type=section&id=Share%20Capital) As of June 30, 2025, issued and fully paid share capital increased to 219,846 thousands shares, primarily due to the placing of 31,632 thousands shares and the exercise of share options Authorised and Issued Share Capital (As of June 30/December 31) | Item | 2025 Number of Shares | 2025 RMB thousands | 2024 Number of Shares | 2024 RMB thousands | | :--- | :--- | :--- | :--- | :--- | | Authorised share capital (HKD0.1 par value per share) | 1,000,000,000 | 79,380 | 1,000,000,000 | 79,380 | | Issued and fully paid share capital (as at January 1) | 186,514,000 | 15,654 | 158,176,000 | 13,026 | | Shares issued under share option scheme | 1,700,000 | 157 | – | – | | Shares issued due to placing | 31,632,000 | 2,902 | 28,338,000 | 2,628 | | Issued and fully paid share capital (as at June 30/December 31) | 219,846,000 | 18,713 | 186,514,000 | 15,654 | - On June 13, 2025, the Company placed **31,632,000 shares** at a placing price of **HKD1.35** per share, raising net proceeds of approximately **RMB38,490 thousands**, intended for developing the supply chain management business[33](index=33&type=chunk) [Share Premium](index=12&type=section&id=Share%20Premium) Under the Companies Law of the Cayman Islands, funds in the Company's share premium account are distributable to shareholders, provided the Company can repay its debts as they fall due - Under the Companies Law of the Cayman Islands, funds in the Company's share premium account are distributable to shareholders[34](index=34&type=chunk) - The distribution is subject to the Company being able to pay its debts as they fall due in the ordinary course of business[34](index=34&type=chunk) [Dividend Policy](index=12&type=section&id=Dividend%20Policy) The Company neither paid nor proposed any dividends for the six months ended June 30, 2025 and 2024 - No dividends were paid or proposed for the six months ended June 30, 2025 and 2024[34](index=34&type=chunk) - No dividends are proposed to be paid since the end of the reporting period[34](index=34&type=chunk) [Management Discussion and Analysis](index=13&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a comprehensive review of the Group's business performance, financial results, working capital, liquidity, capital structure, and risk management for the period [Business Review and Outlook](index=13&type=section&id=Business%20Review%20and%20Outlook) In H1 2025, the Group's revenue surged by **179.0%** to RMB289.9 millions, but net loss widened to RMB4.5 millions, primarily due to economic challenges in Mainland China and the new supply chain management business; the Group remains optimistic about expanding its supply chain management business H1 2025 Performance Overview | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 289.9 | 103.9 | +179.0% | | Net loss | (4.5) | (1.1) | +309.1% | - The Mainland China economy faces challenges, with changes in consumer spending patterns, decreased confidence, and reduced income leading to weak demand in the wholesale and retail markets[35](index=35&type=chunk) - The Group has commenced a new supply chain management business in Mainland China, covering bulk commodity trading products[35](index=35&type=chunk) - The Group is optimistic about the prospects of the apparel wholesale business and supply chain management business in Mainland China for 2025, expecting the supply chain management business to expand into import and export of bulk commodity trading products[37](index=37&type=chunk) [Financial Review](index=14&type=section&id=Financial%20Review) In H1 2025, the Group's revenue significantly increased by **179.0%** to RMB289.9 millions, driven by the supply chain management business; however, cost of sales grew even faster, leading to a decline in gross profit and gross margin, and an expanded loss for the period - The Group's revenue increased by approximately **179.0%**, from approximately **RMB103.9 millions** in H1 2024 to approximately **RMB289.9 millions** in H1 2025[38](index=38&type=chunk) - The supply chain management business contributed approximately **RMB239.1 millions** in revenue, accounting for **82.5%** of total revenue[38](index=38&type=chunk) - Gross profit decreased from approximately **RMB12.4 millions** in H1 2024 to approximately **RMB10.8 millions** in H1 2025, with gross margin declining by **8.2 percentage points** to **3.7%**[40](index=40&type=chunk) - Loss after tax for the period was approximately **RMB4.5 millions**, compared to a loss of approximately **RMB1.1 millions** in H1 2024[47](index=47&type=chunk) [Revenue](index=14&type=section&id=Revenue) Revenue for H1 2025 significantly increased by **179.0%**, primarily driven by the newly launched bulk commodity trading supply chain management business, which contributed **82.5%** of total revenue - The Group's revenue increased by approximately **RMB179.0%**, from approximately **RMB103.9 millions** in H1 2024 to approximately **RMB289.9 millions** in H1 2025[38](index=38&type=chunk) - The supply chain management business for bulk commodity trading products contributed approximately **RMB239.1 millions** in revenue, accounting for **82.5%** of the Group's revenue[38](index=38&type=chunk) - Revenue from the wholesale business of children's wear and other apparel-related products decreased to approximately **RMB50.8 millions**, accounting for **17.5%** of total revenue[38](index=38&type=chunk) [Cost of Sales](index=14&type=section&id=Cost%20of%20Sales) Cost of sales significantly increased by **205.0%** to RMB279.1 millions, largely consistent with changes in product and sales mix and the emergence of the supply chain management business - Cost of sales increased by approximately **RMB187.6 millions** or approximately **205.0%**, from approximately **RMB91.5 millions** in H1 2024 to approximately **RMB279.1 millions** in H1 2025[39](index=39&type=chunk) - This increase is largely consistent with changes in product and sales mix and the emergence of the supply chain management business for bulk commodity trading products[39](index=39&type=chunk) [Gross Profit and Gross Margin](index=15&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Gross profit decreased by **13.1%** to RMB10.8 millions, and gross margin fell by **8.2 percentage points** to **3.7%**, reflecting reduced profitability due to market conditions and changes in product mix - Gross profit decreased from approximately **RMB12.4 millions** in H1 2024 to approximately **RMB10.8 millions** in H1 2025[40](index=40&type=chunk) - Gross margin for H1 2025 was approximately **3.7%**, a decrease of approximately **8.2 percentage points** from **11.9%** in H1 2024[40](index=40&type=chunk) [Other Income](index=15&type=section&id=Other%20Income) Other income decreased from RMB1.9 millions in H1 2024 to RMB0.8 millions in H1 2025, primarily due to reduced interest income and other income - The Group's other income for H1 2025 was approximately **RMB0.8 millions**, compared to **RMB1.9 millions** in H1 2024[41](index=41&type=chunk) - This primarily includes interest income and rental income[41](index=41&type=chunk) [Net Reversal of Expected Credit Loss Provision for Trade and Other Receivables](index=15&type=section&id=Net%20Reversal%20of%20Expected%20Credit%20Loss%20Provision%20for%20Trade%20and%20Other%20Receivables) The net reversal of expected credit loss provision for trade and other receivables was RMB0.1 millions for the period, consistent with the prior year, reflecting management's prudent assessment of creditworthiness, collection history, and market conditions - A net reversal of expected credit loss provision for trade and other receivables of approximately **RMB0.1 millions** was made[42](index=42&type=chunk) - Management's decision was based on current creditworthiness, past collection records, ageing status, and current market conditions[42](index=42&type=chunk) [Selling and Distribution Expenses](index=15&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses decreased by **5.9%** to RMB8.1 millions, mainly due to reduced advertising and marketing-related expenses in the current business environment - Selling and distribution expenses were approximately **RMB8.1 millions**, a decrease of approximately **RMB0.5 millions** (or approximately **5.9%**) from approximately **RMB8.6 millions** in H1 2024[43](index=43&type=chunk) - The decrease was primarily due to lower advertising and marketing-related expenses in H1 2025 given the current business environment[43](index=43&type=chunk) - As a percentage of revenue, selling and distribution expenses decreased from **8.2%** in H1 2024 to **2.8%** in H1 2025[43](index=43&type=chunk) [Administrative and Other Operating Expenses](index=15&type=section&id=Administrative%20and%20Other%20Operating%20Expenses) Administrative and other operating expenses increased by **17.3%** to RMB7.7 millions, but as a percentage of revenue, they decreased from **6.3%** to **2.7%** - Administrative and other operating expenses were approximately **RMB7.7 millions**, an increase of approximately **RMB1.1 millions** (or approximately **17.3%**) from approximately **RMB6.6 millions** in H1 2024[44](index=44&type=chunk) - As a percentage of revenue, they decreased from **6.3%** in H1 2024 to **2.7%** in H1 2025[44](index=44&type=chunk) - These primarily include design and development expenses, salaries and benefits for administrative staff, professional fees, and taxes and levies[44](index=44&type=chunk) [Finance Costs](index=16&type=section&id=Finance%20Costs) Finance costs remained at a similar level of approximately RMB0.3 millions in H1 2025 - Finance costs remained at a similar level of approximately **RMB0.3 millions** in H1 2025 and H1 2024[45](index=45&type=chunk) - Finance costs primarily include interest on bank loans[45](index=45&type=chunk) [Taxation](index=16&type=section&id=Taxation) An income tax expense of RMB0.1 millions was recorded in H1 2025, compared to none in H1 2024, mainly because Mainland China subsidiaries are subject to a **25%** corporate income tax rate - An income tax expense of **RMB0.1 millions** was recorded in H1 2025 (H1 2024: nil)[46](index=46&type=chunk) - Currently, the Group's principal subsidiaries in Mainland China are subject to a corporate income tax rate of **25%**[46](index=46&type=chunk) [Loss for the Period After Tax](index=16&type=section&id=Loss%20for%20the%20Period%20After%20Tax) Loss for the period after tax expanded to approximately RMB4.5 millions, a significant increase from RMB1.1 millions in H1 2024 - Loss after tax for the period was approximately **RMB4.5 millions**, compared to a loss of approximately **RMB1.1 millions** in H1 2024[47](index=47&type=chunk) [Working Capital Management](index=16&type=section&id=Working%20Capital%20Management) As of June 30, 2025, the Group's net current assets increased to RMB125.9 millions, and the current ratio improved to **2.6 times**, with significant reductions in trade receivables, inventory, and trade payables turnover days Working Capital Turnover Days (Days) | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Trade receivables | 65 | 219 | | Inventories | 20 | 64 | | Trade payables | 8 | 26 | - As of June 30, 2025, the Group recorded net current assets of approximately **RMB125.9 millions** and a current ratio of **2.6 times**[48](index=48&type=chunk) - Trade receivables turnover days significantly shortened from **219 days** to **65 days**, inventory turnover days from **64 days** to **20 days**, and trade payables turnover days from **26 days** to **8 days**[49](index=49&type=chunk) [Liquidity and Capital Resources](index=17&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the Group's cash and cash equivalents significantly increased to RMB121.7 millions, with no bank borrowings; net cash from operating activities decreased, but net cash from financing activities substantially increased due to share placing and exercise of share options - As of June 30, 2025, the Group's total cash and cash equivalents were approximately **RMB121.7 millions**, a significant increase from **RMB39.7 millions** as of December 31, 2024[50](index=50&type=chunk) - As of June 30, 2025, the Group had no bank borrowings, compared to approximately **RMB17.0 millions** as of December 31, 2024[50](index=50&type=chunk) - Net cash generated from operating activities decreased by approximately **RMB19.2 millions**, from a net inflow of **RMB67.8 millions** in H1 2024 to a net inflow of **RMB48.6 millions** in H1 2025[50](index=50&type=chunk) - Net cash generated from financing activities was approximately **RMB31.6 millions**, primarily from proceeds from share placing and exercise of share options[50](index=50&type=chunk) [Capital Structure and Fundraising Activities](index=18&type=section&id=Capital%20Structure%20and%20Fundraising%20Activities) In H1 2025, the Company raised approximately HKD41.9 millions net proceeds through the placing of 31,632,000 shares, intended for developing its supply chain management business, platform construction, market promotion, and general working capital, which remained unutilized as of the reporting period end - On May 26, 2025, the Company entered into a placing agreement with the placing agent to place up to **31,635,200 placing shares** at **HKD1.35** per share[52](index=52&type=chunk) - The placing of **31,632,000 shares** was completed on June 13, 2025, raising net proceeds of approximately **HKD41.9 millions**[53](index=53&type=chunk) - As of June 30, 2025, the Company had not utilized any of the net proceeds[53](index=53&type=chunk) [Placing of Shares Under General Mandate](index=18&type=section&id=Placing%20of%20Shares%20Under%20General%20Mandate) The Company entered into a placing agreement with a placing agent to place up to 31,635,200 shares at HKD1.35 per share to no fewer than six placees, under a general mandate - The Company entered into a placing agreement with the placing agent to place up to **31,635,200 placing shares** at a placing price of **HKD1.35** per placing share to no fewer than six placees on a best effort basis[52](index=52&type=chunk) - The placing shares were allotted and issued under a general mandate[52](index=52&type=chunk) [Use of Proceeds from Share Placing](index=18&type=section&id=Use%20of%20Proceeds%20from%20Share%20Placing) The net proceeds of approximately HKD41.9 millions from the placing are intended for establishing a cross-border B2B platform, channel expansion, staff recruitment, and general working capital, with no funds utilized as of the reporting period end Planned and Actual Use of Net Proceeds from Share Placing (HKD millions) | Use | Planned Amount | Percentage of Total Net Proceeds | Actual Use as of June 30, 2025 | | :--- | :--- | :--- | :--- | | Establishment of a multi-language cross-border B2B platform and smart customs declaration system | 7.0 | 16.7% | – | | Channel expansion and market promotion | 10.0 | 23.9% | – | | Expansion of the Group's workforce to broaden business scope | 6.0 | 14.3% | – | | General working capital | 18.9 | 45.1% | – | | **Total** | **41.9** | **100.0%** | **–** | - As of June 30, 2025, the Company had not utilized any of the net proceeds[53](index=53&type=chunk) [Financial Risk Management](index=19&type=section&id=Financial%20Risk%20Management) The Group manages financial risks through treasury policies, maintaining sufficient cash and bank financing, and considers currency and exchange rate risks to be minimal as its primary business is conducted in RMB - The Group has treasury policies aimed at more effectively controlling treasury operations and reducing borrowing costs, requiring the maintenance of adequate levels of cash and cash equivalents and sufficient available bank financing[55](index=55&type=chunk) - The Group's business is primarily conducted in RMB, and most monetary assets and liabilities are denominated in RMB, so management believes the currency risk exposure is not significant[55](index=55&type=chunk) - The Directors believe the Group does not face significant exchange rate risk[55](index=55&type=chunk) [Capital Commitments and Contingent Liabilities](index=19&type=section&id=Capital%20Commitments%20and%20Contingent%20Liabilities) As of June 30, 2025, the Group had no significant capital commitments or contingent liabilities - As of June 30, 2025, the Group had no significant capital commitments or contingent liabilities[56](index=56&type=chunk) [Pledge of Assets](index=19&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, no property and prepaid lease payments were pledged by the Group, compared to approximately RMB9.7 millions of assets pledged as of December 31, 2024 - As of June 30, 2025, no property and prepaid lease payments were pledged for certain bank loans[57](index=57&type=chunk) - As of December 31, 2024, certain property and prepaid lease payments with a net book value of approximately **RMB9.7 millions** were pledged[57](index=57&type=chunk) [Major Investments and Material Acquisitions and Disposals of Subsidiaries](index=19&type=section&id=Major%20Investments%20and%20Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries) For the six months ended June 30, 2025, the Group made no other major investments, material acquisitions, or disposals - For the six months ended June 30, 2025, the Group made no other major investments, material acquisitions, or disposals[58](index=58&type=chunk) [Investments and Hedges Held in Foreign Currencies](index=19&type=section&id=Investments%20and%20Hedges%20Held%20in%20Foreign%20Currencies) For the six months ended June 30, 2025, the Group held no investments denominated in foreign currencies, and its working capital or liquidity was not materially affected by exchange rate fluctuations - For the six months ended June 30, 2025, the Group held no investments denominated in foreign currencies[59](index=59&type=chunk) - The Group's working capital or liquidity did not face any significant difficulties or material impact due to exchange rate fluctuations[59](index=59&type=chunk) [Other Information](index=20&type=section&id=Other%20Information) This section covers additional information including employee and remuneration policies, securities transactions by directors, corporate governance, audit committee review, dividends, public float, results publication, and board composition [Employees and Remuneration Policy](index=20&type=section&id=Employees%20and%20Remuneration%20Policy) The Group's remuneration policy aims to attract and motivate talent, with compensation based on job nature, position, and market levels; as of June 30, 2025, it employed approximately 310 full-time employees, with total staff costs of approximately RMB11.7 millions - The Group's remuneration policy aims to attract, retain, and motivate talented individuals, with performance-based compensation reflecting market levels[60](index=60&type=chunk) - As of June 30, 2025, the Group employed approximately **310 full-time employees**[60](index=60&type=chunk) - Total staff costs for H1 2025 were approximately **RMB11.7 millions** (H1 2024: approximately **RMB11.6 millions**)[60](index=60&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=20&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[61](index=61&type=chunk) [Corporate Governance Code](index=20&type=section&id=Corporate%20Governance%20Code) The Company is committed to maintaining high standards of corporate governance and has adopted the HKEX Corporate Governance Code, with two deviations: the Chairman and CEO roles are combined, and management does not provide monthly updates to the Board - The Company has adopted the code provisions of the Corporate Governance Code set out in Appendix 14 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[62](index=62&type=chunk) - A deviation from code provision A.2.1 exists, where the roles of Chairman and Chief Executive Officer are combined and held by Mr. Ding Peiji, which the Company believes ensures consistent leadership direction[62](index=62&type=chunk) - A deviation from code provision C.1.2 exists, where management does not provide monthly updates to the Board, but provides them when appropriate[63](index=63&type=chunk) [Standard Code for Securities Transactions by Directors](index=21&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted the Standard Code as set out in Appendix 10 of the Listing Rules, and all Directors have confirmed full compliance for H1 2025 - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers set out in Appendix 10 to the Listing Rules[64](index=64&type=chunk) - Following specific enquiries to all Directors, all Directors have confirmed their full compliance with the required standards of dealing as set out in the Standard Code for H1 2025[64](index=64&type=chunk) [Audit Committee and Review of Unaudited Interim Results](index=21&type=section&id=Audit%20Committee%20and%20Review%20of%20Unaudited%20Interim%20Results) The Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025, and found them to be in compliance with applicable accounting standards and Listing Rules - The Company has established an Audit Committee in compliance with Rule 3.21 of the Listing Rules, responsible for reviewing and overseeing the Group's financial reporting process, internal controls, and risk management[65](index=65&type=chunk) - The Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025, and is of the opinion that these statements comply with applicable accounting standards and the Listing Rules, and are adequately disclosed[65](index=65&type=chunk) [Interim Dividend](index=21&type=section&id=Interim%20Dividend) The Board of Directors resolved not to declare any interim dividend for H1 2025 - The Board of Directors resolved not to declare any interim dividend for H1 2025 (H1 2024: nil)[66](index=66&type=chunk) [Sufficiency of Public Float](index=21&type=section&id=Sufficiency%20of%20Public%20Float) The Directors confirm that the Company has maintained a sufficient public float of over **25%** of its issued share capital as required by the Listing Rules up to the date of this announcement - The Directors confirm that the Company has maintained a sufficient public float of over **25%** of its issued share capital as required by the Listing Rules up to the date of this announcement[67](index=67&type=chunk) [Publication of Results](index=21&type=section&id=Publication%20of%20Results) This unaudited interim results announcement has been published on the Company's and HKEX websites, and the interim report will be dispatched to shareholders and published by September 30, 2025 - This unaudited interim results announcement has been published on the Company's website www.redkids.com and the HKEX website www.hkexnews.hk[68](index=68&type=chunk) - The Company's H1 2025 interim report will be dispatched to the Company's shareholders and published on the Company's website and the HKEX website on or before September 30, 2025[68](index=68&type=chunk) [Acknowledgements](index=22&type=section&id=Acknowledgements) The Board of Directors extends its gratitude to the management team, employees, shareholders, and business partners for their support - The Board of Directors extends its sincere gratitude to the management team and employees for their contributions and dedication[69](index=69&type=chunk) - Appreciation is also extended to shareholders and business partners for their strong support of the Group[69](index=69&type=chunk) [Board Information](index=22&type=section&id=Board%20Information) As of the date of this announcement, the Board of Directors comprises four executive directors (Mr. Ding Peiji, Mr. Ding Peiyuan, Ms. Liu Min, Mr. Yu Jianjun) and three independent non-executive directors (Mr. Wu Chengjian, Mr. Chen Jun, Mr. Guo Zheng) - As of the date of this announcement, the executive directors are Mr. Ding Peiji, Mr. Ding Peiyuan, Ms. Liu Min, and Mr. Yu Jianjun[70](index=70&type=chunk) - The independent non-executive directors are Mr. Wu Chengjian, Mr. Chen Jun, and Mr. Guo Zheng[70](index=70&type=chunk) - Mr. Ding Peiji serves as the Chairman of the Board[70](index=70&type=chunk)

Company Overview - Mig International Holdings is primarily engaged in the design, manufacturing, and sales of children's clothing, operating through two business segments: production and wholesale of children's clothing products, and retail outlets for children's clothing products [2] - The company's product range includes apparel, footwear, and accessories for children and infants, such as backpacks and socks, marketed under the "Red Baby" brand [2] Financial Performance - As of December 31, 2024, Mig International Holdings reported total revenue of 389 million yuan, representing a year-on-year increase of 158.37% [1] - The company recorded a net profit attributable to shareholders of -28.42 million yuan, a decrease of 123.47% compared to the previous year [1] - The gross profit margin stood at 4.91%, with a debt-to-asset ratio of 35.71% [1] Stock Performance - As of August 19, the stock price of Mig International Holdings was 2.27 HKD per share, reflecting an increase of 11.27% with a trading volume of 1.803 million shares and a turnover of 3.8854 million HKD [1] - Over the past month, the stock has seen a cumulative increase of 13.33%, while year-to-date, it has risen by 12.09%, underperforming the Hang Seng Index, which has increased by 25.51% [1] Industry Valuation - The average price-to-earnings (P/E) ratio for the textile and apparel industry is -12.71 times, with a median of 3.54 times [2] - Mig International Holdings has a P/E ratio of -14.62 times, ranking 81st in the industry [2] - Comparatively, other companies in the industry have P/E ratios such as FAST RETAIL-DRS at 0.36 times, Zhejiang Yong'an at 1.34 times, and others ranging from 3.46 to 3.54 times [2] Upcoming Events - The company is scheduled to disclose its mid-year report for the fiscal year 2025 on August 28, 2025 [3]