此 乃 要 件 請 即 處 理 閣下如對本通函任何內容或應採取之行動有任何疑問，應諮詢 閣下之股票經紀或其他持牌證 券交易商、銀行經理、律師、專業會計師或其他專業顧問。 閣下如已售出或轉讓所有名下之華控康泰集團有限公司股份，應立即將本通函送交買方或承讓 人，或經手出售或轉讓之銀行、股票經紀或其他持牌證券交易商或其他代理人，以便轉交買方或 承讓人。 香港交易及結算所有限公司及香港聯合交易所有限公司對本通函之內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本通函全部或任何部份內容而產生或因倚 賴該等內容而引致之任何損失承擔任何責任。 有關 北京研發綜合樓建築合約的 須予披露及關連交易 本封面頁所用詞彙與本通函所界定者具相同涵義。董事會函件載於本通函第4至10頁。 董事會函件載於本通函第4至10頁。獨立董事委員會致獨立股東之推薦意見函載於本通函第11至 12頁。載有獨立財務顧問旭倫企業融資有限公司就北京建築合約及其項下擬進行的交易致獨立 董事委員會及獨立股東之意見之函件載於本通函第13至22頁。 股東特別大會謹訂於二零二五年十月二十日（星期一）上午十時正假座香港灣仔謝斐道238號香港 諾富特 ...

延遲寄發 有關 須予披露及關連交易的通函 茲提述華控康泰集團有限公司（「本公司」）日期為二零二五年八月十八日的公告（「該 公告」），內容有關就北京研發綜合樓項目所訂立的北京建築合約。除另有界定者 外，本公告所用詞彙與該公告所界定者具有相同涵義。 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何 部分內容而產生或因依賴該等內容而引致之任何損失承擔任何責任。 如該公告所述，一份載有（其中包括）(i)有關北京建築合約及其項下擬進行之交易的 進一步資料；(ii)獨立董事委員會向獨立股東提供的推薦建議；(iii)獨立財務顧問函 件，當中載有其有關上述事項的意見；及(iv)召開股東特別大會的通告連同代表委 任表格的通函（「該通函」），預期將於二零二五年九月八日或之前寄發予股東。 由於需要額外時間確定將載入該通函的若干資料，本公司正向聯交所申請豁免嚴格 遵守上市規則第14.41(a)條的規定，目前預期該通函的寄發日期將推遲至二零二五 年九月三十日或之前的日期。 承董事會命 華控康泰集團有限公司 主席 王飛飛 香港，二零二五年九 ...

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: 華控康泰集團有限公司 呈交日期: 2025年9月2日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01312 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 100,000,000,000 | HKD | | 0.002 | HKD | | 200,000,000 | | 增加 / 減少 (-) | | | 0 | | | | HKD | | | | 本月底結存 | | | 100,000,000,000 | HKD | | 0.002 | HKD | | 200,000,000 | ...

Core Viewpoint - The company, Huakong Kante (01312.HK), reported a significant increase in net loss for the six months ending June 30, 2025, primarily due to challenges in its fitness franchise business and economic uncertainties [1] Financial Performance - The group's revenue and gross profit for the period were approximately HKD 452.7 million and HKD 254.6 million, representing a decline of about 1.3% and 8.1% respectively compared to the same period in 2024 [1] - The net loss for the group was approximately HKD 321.4 million, a substantial increase from a net loss of approximately HKD 4.5 million in 2024 [1] - Basic loss per share was approximately HKD 5.06, compared to earnings of approximately HKD 0.09 per share in 2024 [1] Business Challenges - The increase in net loss was attributed to a series of changes in the performance of the fitness franchise business, which faced slow recovery due to economic uncertainties and intensified competition [1] - The company's joint venture operating in Taiwan encountered operational difficulties and financial constraints, contributing to the financial losses [1] Impairment Losses - The group recorded significant impairment losses, including: - Expected credit loss model impairment of financial assets amounting to approximately HKD 159.0 million, compared to HKD 25.5 million in 2024 [1] - Impairment loss on intangible assets of approximately HKD 123.9 million, compared to HKD 13.6 million in 2024 [1] - Goodwill impairment loss in the fitness business segment of approximately HKD 88.4 million, whereas there was no such loss recorded in 2024 [1]

Group 1 - The company, Huakong Kante (01312), reported a revenue of HKD 453 million for the six months ending June 30, 2025, representing a year-on-year decrease of 1.3% [1] - The company recorded a loss attributable to shareholders of HKD 282 million, compared to a profit of HKD 4.745 million in the same period last year [1] - Basic loss per share was HKD 0.0506 [1] Group 2 - The significant increase in net loss was primarily due to changes in the company's fitness business franchise operations, which faced a slow recovery due to an uncertain economic outlook and intensified competition [1] - The company's joint venture in Taiwan encountered operational difficulties and financial constraints, leading to an expected credit loss model resulting in financial asset impairment losses of approximately HKD 159 million (compared to HKD 25.5 million in 2024) [1] - Impairment losses on intangible assets amounted to approximately HKD 124 million (compared to HKD 13.6 million in 2024), and goodwill impairment losses in the fitness business segment were approximately HKD 88.4 million (no losses reported in 2024) [1]

Core Viewpoint - Huakong Kantech (01312) reported a significant increase in net loss for the six months ending June 30, 2025, primarily due to challenges in its fitness franchise business and operational difficulties in its joint venture in Taiwan [1] Financial Performance - The company achieved revenue of HKD 453 million, a year-on-year decrease of 1.3% [1] - Shareholders' loss amounted to HKD 282 million, compared to a profit of HKD 4.745 million in the same period last year [1] - Basic loss per share was HKD 0.0506 [1] Business Challenges - The increase in net loss was attributed to a series of changes in the fitness franchise business, influenced by an uncertain economic outlook and intensified competition, leading to slower-than-expected business recovery [1] - The joint venture operating in Taiwan faced operational difficulties and financial constraints, contributing to significant impairment losses [1] Impairment Losses - The company recorded expected credit loss impairment of approximately HKD 159 million (2024: approximately HKD 25.5 million) [1] - Impairment loss on intangible assets was approximately HKD 124 million (2024: approximately HKD 13.6 million) [1] - Goodwill impairment loss in the fitness business segment was approximately HKD 88.4 million (2024: none) [1]

[Announcement Overview](index=1&type=section&id=Announcement%20Overview) [Unaudited Interim Results Announcement](index=1&type=section&id=Unaudited%20Interim%20Results%20Announcement) Huakong Kangtai Group Co., Ltd. announced its unaudited condensed consolidated interim results for the six months ended June 30, 2025, reviewed by the audit committee and auditors - Company name: **Huakong Kangtai Group Co., Ltd.**[3](index=3&type=chunk) - Reporting period: Six months ended **June 30, 2025**[2](index=2&type=chunk)[3](index=3&type=chunk) - Audit status: Unaudited, but reviewed by the company's audit committee and auditors[3](index=3&type=chunk) [Condensed Consolidated Financial Statements](index=1&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company shifted from a profit to a significant loss year-on-year, driven by decreased revenue, increased cost of sales and services, and substantial increases in other gains and losses and net impairment losses Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Revenue | 452,723 | 458,517 | | Cost of sales and services | (198,102) | (181,371) | | Gross profit | 254,621 | 277,146 | | Other gains and losses | (187,021) | (19,044) | | Net impairment losses recognized under expected credit loss model | (159,035) | (25,466) | | (Loss) Profit before tax | (339,251) | 3,672 | | Loss for the period | (321,425) | (4,532) | | Loss attributable to owners of the Company | (282,484) | 4,745 | | Basic (loss) earnings per share | (5.06) HK cents | 0.09 HK cents | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets and equity decreased from December 31, 2024, with significant reductions in non-current assets like goodwill and intangible assets, and a notable decline in net current assets Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Non-current assets | 730,458 | 1,030,423 | | Goodwill | 164,967 | 253,303 | | Intangible assets | 95,106 | 222,546 | | Current assets | 422,582 | 557,009 | | Current liabilities | 415,603 | 442,312 | | Net current assets | 6,979 | 114,697 | | Total equity | 620,918 | 961,536 | [Notes to the Condensed Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [Auditor's Review](index=5&type=section&id=Auditor's%20Review) The Group's interim condensed consolidated financial statements for the six months ended June 30, 2025, have been reviewed by BDO Limited, Hong Kong, in accordance with Hong Kong Standard on Review Engagements 2410 - Reviewing firm: **BDO Limited, Hong Kong**[9](index=9&type=chunk) - Review standard: **Hong Kong Standard on Review Engagements 2410**[9](index=9&type=chunk) [Basis of Preparation](index=5&type=section&id=Basis%20of%20Preparation) These interim condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and the disclosure requirements of the Listing Rules, and should be read in conjunction with the 2024 annual report - Preparation standards: **Hong Kong Accounting Standard 34 "Interim Financial Reporting"** and the **Listing Rules**[10](index=10&type=chunk) - Reading recommendation: Should be read in conjunction with the **2024 annual report**[10](index=10&type=chunk) [Changes in Accounting Policies](index=5&type=section&id=Changes%20in%20Accounting%20Policies) The interim condensed consolidated financial statements are prepared on a historical cost basis, except for certain financial instruments measured at fair value; new HKFRS amendments were first applied this period with no significant impact on financial position or performance - Preparation basis: **Historical cost basis**, with some financial instruments measured at **fair value**[11](index=11&type=chunk) - New standards applied: First-time application of amendments to Hong Kong Financial Reporting Standards, including **HKAS 21** and **HKFRS 1 "Lack of Exchangeability"**[12](index=12&type=chunk) - Impact: No significant impact on the financial position and performance for the current and prior periods[12](index=12&type=chunk) [Revenue and Segment Information](index=6&type=section&id=Revenue%20and%20Segment%20Information) The Group's total revenue slightly decreased year-on-year, primarily comprising pharmaceutical and fitness businesses, with stable pharmaceutical revenue and reduced fitness revenue, while mainland China remains the primary regional market Revenue by Major Product or Service Line (For the six months ended June 30) | Product/Service Line | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Manufacturing and sales of pharmaceutical products | 344,769 | 345,390 | | Private training courses | 31,852 | 35,295 | | Membership packages | 59,523 | 59,715 | | Franchise fee income | 16,579 | 18,117 | | **Total Revenue** | **452,723** | **458,517** | Revenue by Geographical Market (For the six months ended June 30) | Geographical Market | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Mainland China | 336,040 | 330,625 | | Singapore | 91,375 | 95,010 | | Taiwan | 16,579 | 18,117 | | Others | 8,729 | 14,765 | | **Total Revenue** | **452,723** | **458,517** | Segment Revenue and Results (For the six months ended June 30) | Segment | 2025 Revenue (HKD thousands) | 2024 Revenue (HKD thousands) | 2025 Results (HKD thousands) | 2024 Results (HKD thousands) | | :--- | :--- | :--- | :--- | :--- | | Pharmaceutical Business | 344,769 | 345,390 | 20,420 | 60,478 | | Fitness Business | 107,954 | 113,127 | (338,711) | (38,544) | | **Total** | **452,723** | **458,517** | **(318,291)** | **21,934** | - Pharmaceutical Business: Primarily engaged in the manufacturing and sales of pharmaceutical products, including **chemical drugs, active pharmaceutical ingredients (APIs), and API intermediates**[15](index=15&type=chunk) - Fitness Business: Primarily engaged in operating fitness centers, providing fitness and health consulting services, and **franchising operations**[15](index=15&type=chunk) [Other Gains and Losses](index=8&type=section&id=Other%20Gains%20and%20Losses) Other gains and losses recorded a significant loss this period, primarily due to substantial increases in impairment losses on intangible assets and goodwill, particularly goodwill impairment in the fitness segment Other Gains and Losses (For the six months ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Net exchange gains (losses) | 25,720 | (5,580) | | Impairment loss on intangible assets | (123,873) | (13,559) | | Impairment loss on goodwill | (88,417) | — | | **Total** | **(187,021)** | **(19,044)** | - Goodwill impairment in fitness segment: An impairment assessment was conducted on the goodwill of the fitness business cash-generating unit due to operating losses, operational difficulties, and tight financial resources of franchisees, resulting in an impairment loss of approximately **HKD 88,417 thousands**[16](index=16&type=chunk) [Net Impairment Losses under Expected Credit Loss Model](index=8&type=section&id=Net%20Impairment%20Losses%20under%20Expected%20Credit%20Loss%20Model) Net impairment losses recognized under the expected credit loss model significantly increased this period, primarily due to impairment losses on amounts due from an associate Net Impairment Losses Recognized under Expected Credit Loss Model (For the six months ended June 30) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Trade receivables | 1,916 | (2,862) | | Amounts due from an associate | (161,282) | (22,565) | | **Total** | **(159,035)** | **(25,466)** | - Main reason: Credit losses have occurred on amounts due from an associate, assessed based on the **lifetime expected credit loss model**[17](index=17&type=chunk) [Taxation](index=9&type=section&id=Taxation) Taxation for the period shifted from an expense last year to a credit, primarily due to an increase in deferred tax credits Taxation (Credit) Expense (For the six months ended June 30) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Current tax | 3,904 | 12,921 | | Deferred tax | (21,730) | (6,105) | | **Total** | **(17,826)** | **8,204** | [Loss for the Period](index=10&type=section&id=Loss%20for%20the%20Period) Loss for the period was primarily impacted by amortization and depreciation of intangible assets, inventory costs, sales and promotion expenses, and impairment losses on intangible assets and goodwill Loss for the Period is Arrived at After Charging (Crediting) the Following (For the six months ended June 30) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Total amortization and depreciation | 47,936 | 49,685 | | Cost of inventories recognized as expense | 101,254 | 76,631 | | Sales and promotion expenses | 201,694 | 192,789 | | Impairment loss on intangible assets | 123,873 | 13,559 | | Impairment loss on goodwill | 88,417 | — | [Earnings/(Loss) per Share](index=11&type=section&id=Earnings%2F%28Loss%29%20per%20Share) For the six months ended June 30, 2025, the company reported a basic loss per share of 5.06 HK cents, compared to earnings per share of 0.09 HK cents in the prior period, primarily due to a significant increase in loss attributable to owners of the Company Calculation of Basic (Loss) Earnings per Share (For the six months ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | (Loss) Profit attributable to owners of the Company | (282,484) | 4,745 | | Weighted average number of ordinary shares | 5,578,713,777 | 5,578,713,777 | | **Basic (Loss) Earnings per Share** | **(5.06) HK cents** | **0.09 HK cents** | - No diluted earnings per share: Diluted earnings per share are not presented as there were no outstanding potential ordinary shares for the current or prior periods[21](index=21&type=chunk) [Dividends](index=11&type=section&id=Dividends) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025, and no dividends were paid, declared, or proposed during the period - Interim dividend: **Not recommended** (2024: Nil)[22](index=22&type=chunk) - Dividends for the period: **None paid, declared, or proposed**[22](index=22&type=chunk) [Property, Plant and Equipment / Intangible Assets / Right-of-use Assets](index=11&type=section&id=Property%2C%20Plant%20and%20Equipment%20%2F%20Intangible%20Assets%20%2F%20Right-of-use%20Assets) Acquisitions of property, plant and equipment increased this period, intangible assets were fully impaired due to operational difficulties in Taiwan's franchise business, and a portion of right-of-use assets was derecognized due to a modification of a Singapore fitness center lease agreement - Property, plant and equipment: Acquisitions of approximately **HKD 13,196 thousands** this period (2024: approximately HKD 9,339 thousands)[23](index=23&type=chunk) - Intangible asset impairment: Intangible assets related to the Taiwan franchise business were fully impaired by approximately **HKD 123,873 thousands** due to operational difficulties, tight financial resources, and insufficient projected franchise fee income (2024: approximately HKD 13,559 thousands)[24](index=24&type=chunk)[25](index=25&type=chunk) - Right-of-use assets: Approximately **HKD 20,656 thousands** derecognized due to modification of the Singapore fitness center property lease agreement[26](index=26&type=chunk) [Trade Receivables](index=12&type=section&id=Trade%20Receivables) As of June 30, 2025, total trade receivables slightly increased, primarily concentrated in the 0-90 day aging category Aging Analysis of Trade Receivables (As of June 30) | Aging | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | 0 to 90 days | 88,728 | 74,837 | | 91 to 180 days | 17,610 | 29,530 | | 181 to 365 days | 2,387 | 3,150 | | Over one year | 439 | 1,193 | | **Total** | **109,164** | **108,710** | - Credit period: Trade customers have credit periods ranging from **30 to 180 days**, while fitness business customers settle via credit card[27](index=27&type=chunk) [Trade Payables](index=12&type=section&id=Trade%20Payables) As of June 30, 2025, total trade payables slightly decreased, primarily concentrated in the 0-90 day aging category Aging Analysis of Trade Payables (As of June 30) | Aging | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | 0 to 90 days | 4,808 | 4,258 | | 91 to 180 days | 7 | 16 | | 181 to 365 days | — | 136 | | Over one year | 1,658 | 2,249 | | **Total** | **6,473** | **6,659** | [Contingent Liabilities](index=13&type=section&id=Contingent%20Liabilities) The Group is involved in two legal proceedings (2019 and 2021 legal proceedings) related to the acquisition of True Cayman equity and profit guarantee arrangements; management assesses a low probability of significant economic outflow from these proceedings - 2019 legal proceedings: Involve the acquisition of **51% equity in True Cayman** and a sale and purchase agreement; the Group has enforced its rights under the share charge agreement and filed counterclaims, with no substantial progress and no trial date set[32](index=32&type=chunk) - 2021 legal proceedings: Involve legal action by Fester Global against Active Gains and Mr. PJW for breach of the sale and purchase agreement and shareholders' agreement, with no substantial progress and no trial date set[30](index=30&type=chunk)[32](index=32&type=chunk) - Management assessment: The likelihood of any significant economic outflow due to the aforementioned legal proceedings is **low**[30](index=30&type=chunk)[32](index=32&type=chunk) [Events After the Reporting Period](index=14&type=section&id=Events%20After%20the%20Reporting%20Period) Subsequent to the reporting period, the Group renewed a property lease agreement for a Singapore fitness center and entered into a construction contract with an associate for a Beijing R&D complex project, both constituting discloseable transactions - Singapore fitness center lease renewal: True Fitness Pte. Ltd. renewed a two-year lease agreement with Overseas Movie (Private) Limited, effective **August 5, 2025**, with an estimated recognition of right-of-use assets of approximately **HKD 16,059 thousands**[33](index=33&type=chunk) - Beijing R&D complex project: Tongfang Pharmaceutical Group Co., Ltd. signed a construction contract with Beijing Tsinghua Chuangchuang Engineering Construction Co., Ltd., valued at approximately **RMB 33,672 thousands**, for a new R&D complex; this is a discloseable and connected transaction requiring independent shareholders' approval[33](index=33&type=chunk)[34](index=34&type=chunk) - Management's preliminary assessment: Directly attributable asset costs will be capitalized as additions to **property, plant and equipment**[35](index=35&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=Management%20Discussion%20and%20Analysis) [Business Overview](index=15&type=section&id=Business%20Overview) The Group primarily engages in the manufacturing and sales of pharmaceutical products in China, as well as operating fitness centers and providing fitness and health consulting services, including franchising - Principal businesses: (i) Manufacturing and sales of pharmaceutical products in China (chemical drugs, APIs, API intermediates); (ii) Operating fitness centers, providing fitness and health consulting services, and operating franchising business to generate franchise fee income[37](index=37&type=chunk) [Financial Results](index=15&type=section&id=Financial%20Results) For the six months ended June 30, 2025, the Group's revenue and gross profit both decreased, and net loss significantly increased, primarily due to substantial impairment losses from underperforming fitness franchise operations Key Financial Results (For the six months ended June 30) | Indicator | 2025 (HKD millions) | 2024 (HKD millions) | | :--- | :--- | :--- | | Revenue | 452.7 | 458.5 | | Gross profit | 254.6 | 277.1 | | Net loss | 321.4 | 4.5 | | Basic loss per share | 5.06 HK cents | 0.09 HK cents (profit) | - Main reasons for loss: Changes in fitness business franchise performance, uncertain economic outlook, intensified competition, and operational difficulties and tight funding for the Taiwan associate[39](index=39&type=chunk) - Major impairment losses: Expected credit losses of approximately **HKD 159.0 millions**, impairment loss on intangible assets of approximately **HKD 123.9 millions**, and goodwill impairment loss on fitness business of approximately **HKD 88.4 millions**[39](index=39&type=chunk) [Business Review](index=16&type=section&id=Business%20Review) Pharmaceutical business revenue and gross profit slightly decreased due to intensified market competition but still recorded gains; fitness business revenue declined and incurred significant losses, primarily due to slower-than-expected franchise recovery and substantial impairment losses [Pharmaceutical Business](index=16&type=section&id=Pharmaceutical%20Business) Pharmaceutical business revenue and gross profit slightly decreased due to intensified market competition and product price adjustments, but still recorded gains, with increased marketing investment to maintain market share Pharmaceutical Business Financial Performance (For the six months ended June 30) | Indicator | 2025 (HKD millions) | 2024 (HKD millions) | | :--- | :--- | :--- | | Revenue | 344.8 | 345.4 | | Gross profit | 238.8 | 264.4 | | Segment results | 20.4 (gain) | 60.5 (gain) | - Reasons for decline: Intensified market competition negatively impacted individual product prices, while increased marketing investment led to higher distribution and selling expenses[40](index=40&type=chunk) [Tongfang Pharmaceutical Group Co., Ltd.](index=16&type=section&id=Tongfang%20Pharmaceutical%20Group%20Co.,%20Ltd.) Tongfang Pharmaceutical primarily engages in the production and sales of chemical generic drugs, with both revenue and gross profit declining in the first half due to intensified market competition - Principal business: Production and sales of **chemical generic drugs**, with key products being prescription drugs (local anesthetics and gynecological drugs)[41](index=41&type=chunk) Tongfang Pharmaceutical Financial Performance (For the six months ended June 30) | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | | :--- | :--- | :--- | | Revenue | 276.8 | 278.7 | | Gross profit | 223.5 | 235.9 | - Future strategy: Improve marketing efficiency and **increase product R&D efforts**[41](index=41&type=chunk) [Chongqing Kangle Pharmaceutical Co., Ltd.](index=17&type=section&id=Chongqing%20Kangle%20Pharmaceutical%20Co.,%20Ltd.) Chongqing Kangle primarily engages in the R&D, production, and sales of APIs and API intermediates; first-half revenue grew due to increased overseas customer demand, but gross profit declined due to fluctuating market prices - Principal business: R&D, production, and sales of **APIs and API intermediates**[42](index=42&type=chunk) Chongqing Kangle Financial Performance (For the six months ended June 30) | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | | :--- | :--- | :--- | | Revenue | 44.9 | 40.2 | | Gross profit | 4.9 | 10.2 | - Reason for revenue growth: Increased demand from overseas customers for one of its core products, driving higher sales volumes[42](index=42&type=chunk) - Reason for gross profit decline: Fluctuations in market prices of products sold[42](index=42&type=chunk) [Fitness Business](index=17&type=section&id=Fitness%20Business) Fitness business revenue decreased and incurred significant losses, primarily due to slower-than-expected business recovery, especially operational difficulties and tight funding faced by Taiwan franchisees, leading to substantial impairment losses Fitness Business Financial Performance (For the six months ended June 30) | Indicator | 2025 (HKD millions) | 2024 (HKD millions) | | :--- | :--- | :--- | | Revenue | 108.0 | 113.1 | | Of which: Franchise fee income | 16.6 | 18.1 | | Segment loss | 338.7 | 38.5 | - Reason for revenue decrease: Slower-than-expected recovery of the fitness business, including Taiwan franchise operations[43](index=43&type=chunk) - Reason for significant loss increase: Changes in franchise business performance, operational difficulties, and tight funding faced by Taiwan franchisees, leading to **substantial impairment losses**[43](index=43&type=chunk) [Financial Review](index=17&type=section&id=Financial%20Review) The Group's liquidity primarily stems from cash generated from operations and bank borrowings; cash reserves slightly decreased at period-end, while the gearing ratio increased, with financial policies aimed at risk reduction and avoiding speculative derivative financial transactions [Liquidity and Funding](index=17&type=section&id=Liquidity%20and%20Funding) The Group's capital expenditures, daily operations, and investments are primarily funded by cash generated from operations and bank borrowings; cash and cash equivalents slightly decreased at period-end - Sources of funding: **Cash generated from operations** and **bank borrowings** from principal bankers[44](index=44&type=chunk) Cash and Cash Equivalents (As of June 30) | Indicator | June 30, 2025 (HKD millions) | December 31, 2024 (HKD millions) | | :--- | :--- | :--- | | Bank balances and cash reserves | 78.3 | 80.6 | [Bank Borrowings](index=18&type=section&id=Bank%20Borrowings) The Group's outstanding borrowings repayable within one year decreased, primarily denominated in RMB and SGD, with a portion bearing floating interest rates; the gearing ratio increased Outstanding Borrowings (As of June 30) | Indicator | June 30, 2025 (HKD millions) | December 31, 2024 (HKD millions) | | :--- | :--- | :--- | | Bank borrowings due within one year | 82.1 | 88.1 | - Currency composition: **77.5% denominated in RMB** and **22.5% in SGD**[45](index=45&type=chunk) - Interest rate composition: Approximately **22.5% bear floating interest rates**, with the remainder bearing fixed interest rates[45](index=45&type=chunk) Gearing Ratio (As of June 30) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gearing ratio | 7.1% | 5.5% | [Financial Management and Policies](index=18&type=section&id=Financial%20Management%20and%20Policies) The Group's financial policies aim to minimize financial risks, avoiding speculative derivative financial transactions and high-risk financial product investments for liquid assets - Policy objective: To **minimize financial risks**[47](index=47&type=chunk) - Investment restrictions: **No participation in speculative derivative financial transactions** and **no investment of liquid assets in high-risk financial products**[47](index=47&type=chunk) [Foreign Exchange Fluctuation Risk](index=18&type=section&id=Foreign%20Exchange%20Fluctuation%20Risk) The Group's operations are primarily in China and Singapore, with transactions in RMB, SGD, USD, and HKD; the Group closely monitors foreign exchange risk and may hedge when necessary, but still faces exchange rate risk from financial statement translation into HKD - Principal business regions: **China and Singapore**[48](index=48&type=chunk) - Principal transaction currencies: **RMB, SGD, USD, and HKD**[48](index=48&type=chunk) - Risk management: **Closely monitors foreign exchange risk** and considers hedging when necessary[48](index=48&type=chunk) - Presentation currency risk: Faces exchange rate risk arising from the translation of interim condensed consolidated financial statements into **HKD**[48](index=48&type=chunk) [Asset Pledges](index=19&type=section&id=Asset%20Pledges) As of June 30, 2025, the Group's bank borrowings and lease liabilities are secured by buildings and structures, investment properties, right-of-use assets, and bank balances Pledged Assets (As of June 30) | Pledged Assets | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Buildings and structures | 21,773 | 30,622 | | Investment properties | 32,524 | 32,901 | | Right-of-use assets | 1,537 | 1,434 | | Bank balances | 1,047 | 305 | | **Total** | **56,881** | **65,262** | - Secured liabilities: Bank borrowings of approximately **HKD 82,081 thousands** and lease liabilities of approximately **HKD 162 thousands**[49](index=49&type=chunk) [Significant Capital Commitments and Investments](index=19&type=section&id=Significant%20Capital%20Commitments%20and%20Investments) The Group's contracted capital commitments not provided for in the interim condensed consolidated financial statements primarily relate to the acquisition of property, plant and equipment Capital Commitments (As of June 30) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Acquisition of property, plant and equipment | 4,606 | 5,284 | [Employees](index=19&type=section&id=Employees) As of June 30, 2025, the Group's employee count slightly decreased, and staff costs also declined; the Group offers competitive remuneration and share award schemes to incentivize and retain talent - Number of employees: **655** (December 31, 2024: 688)[52](index=52&type=chunk) - Staff costs: Approximately **HKD 72,402 thousands** (2024: approximately HKD 75,099 thousands)[52](index=52&type=chunk) - Remuneration policy: Offers **competitive remuneration packages**, performance-based salaries and bonuses, and a **share award scheme** to incentivize and retain talent[52](index=52&type=chunk) [Outlook](index=20&type=section&id=Outlook) The Group maintains a cautiously optimistic outlook for the second half, focusing on consolidating market share for existing advantageous products and quality services, while adjusting sales and operational strategies as needed to address challenges [Overall Outlook](index=20&type=section&id=Overall%20Outlook) The Group faced intense market competition in the first half and holds a cautiously optimistic outlook for the second half, aiming to consolidate market share and adjust strategies to meet challenges - First-half challenge: Impact of **intense market competition**[53](index=53&type=chunk) - Second-half strategy: Consolidate market share for existing advantageous products and quality services, continuously monitor market dynamics, and **adjust sales and operational strategies as appropriate**[53](index=53&type=chunk) [Pharmaceutical Business Outlook](index=20&type=section&id=Pharmaceutical%20Business%20Outlook) The pharmaceutical business will continue to strengthen revenue contributions from existing advantageous products, advance new product R&D, and build a "technology-led, service-enabled" dual-driven development model to strive for sustained growth - First-half strategy: **Adjusted selling prices for some products** to secure customer relationships and market share[54](index=54&type=chunk) - Future strategy: Strengthen revenue contribution from existing advantageous products, **advance new product R&D**, enrich the sales product portfolio, and build a **"technology-led, service-enabled" dual-driven development model**[54](index=54&type=chunk) [Fitness Business Outlook](index=20&type=section&id=Fitness%20Business%20Outlook) The fitness business will closely monitor changes in the Singapore and Taiwan fitness industry landscape, developing more effective strategies including innovative services, diversified membership packages, personal training expansion, brand collaborations, and digital marketing to strengthen brand image - Future strategy: Closely monitor changes in the **Singapore and Taiwan fitness industry landscape** and formulate effective business development strategies[55](index=55&type=chunk) - Singapore fitness business initiatives: Emphasize **innovation and diversified services**, launch more varied membership packages, enrich personal training expansion courses, seek brand collaborations, and strengthen digital marketing to enhance customer acquisition capabilities[55](index=55&type=chunk) [Dividend Policy](index=21&type=section&id=Dividend%20Policy) The Board considers it prudent to maintain an appropriate level of capital to seize future business opportunities, thus not recommending an interim dividend for the six months ended June 30, 2025 - Dividend recommendation: **No interim dividend recommended** (2024: Nil)[56](index=56&type=chunk) - Reason: To maintain an **appropriate level of capital** to seize future business opportunities[56](index=56&type=chunk) [Other Information](index=21&type=section&id=Other%20Information) [Compliance with Corporate Governance Code](index=21&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Company has complied with all applicable code provisions of the Corporate Governance Code, except for the deviation from code provision C.2.1 where the Chairman and Chief Executive Officer are the same person; the Board believes this arrangement benefits business strategy execution and operational efficiency, without compromising power balance - Compliance status: **Complied with all applicable code provisions**, except for a deviation from **code provision C.2.1**[57](index=57&type=chunk) - Reason for deviation: Mr. Wang Feifei serves concurrently as Chairman and Group President; the Board believes this arrangement benefits **business strategy execution and operational efficiency**, and that the balance of power, accountability, and independent decision-making are not compromised[57](index=57&type=chunk) - Oversight mechanism: The Audit Committee has **direct access to external auditors and independent professional advisors**[57](index=57&type=chunk) [Review by Audit Committee](index=21&type=section&id=Review%20by%20Audit%20Committee) The Audit Committee has reviewed the Group's accounting principles and practices, discussed internal controls and financial reporting matters, including a general review of the unaudited interim financial report, primarily relying on the external auditor's review results and management's report - Review scope: **Accounting principles and practices**, **internal controls and financial reporting matters**, and the **unaudited interim financial report**[58](index=58&type=chunk) - Review basis: Results of the external auditor's review conducted in accordance with **Hong Kong Standard on Review Engagements 2410**, and reports submitted by management[58](index=58&type=chunk) - Nature of review: **General review**, without detailed independent audit examination[58](index=58&type=chunk) [Purchase, Sale or Redemption of Shares](index=21&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Shares) 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 shares - Share transactions: **No shares of the Company were purchased, sold, or redeemed** during the period[59](index=59&type=chunk) [Events After Reporting Period](index=22&type=section&id=Events%20After%20Reporting%20Period_Other) Subsequent to the reporting period, the Company renewed a Singapore fitness center lease agreement and entered into a construction contract with an associate for a Beijing R&D complex project, with details disclosed in Note 15 - Singapore fitness center lease renewal: A new two-year lease was entered into on **July 18, 2025**[60](index=60&type=chunk) - Beijing R&D complex project: A construction contract was signed on **August 18, 2025**, valued at approximately **RMB 33,672 thousands**[60](index=60&type=chunk) - Details reference: Note 15 "Events After the Reporting Period" contained in this announcement[60](index=60&type=chunk) [Interim Report Publication](index=22&type=section&id=Interim%20Report%20Publication) The Company's interim report for the six months ended June 30, 2025, will be published on the HKEX and the Company's website in due course - Publication platforms: **HKEX website** (http://www.hkexnews.hk) and the **Company's website** (http://www.kontafarma.com.hk)[61](index=61&type=chunk) - Report nature: The financial results contained in this announcement **do not constitute statutory financial statements**[61](index=61&type=chunk) [Board Composition](index=22&type=section&id=Board%20Composition) As of the date of this announcement, the Board comprises four executive directors, one non-executive director, and three independent non-executive directors, with Mr. Wang Feifei serving concurrently as Chairman and President - Board members: **Four executive directors** (Mr. Wang Feifei, Ms. Qiao Lina, Ms. Guo Zixiu, Mr. Liu Jiankun), **one non-executive director** (Mr. Huang Yu), and **three independent non-executive directors** (Dr. Deng Lihua, Dr. He Haoming, Mr. Yao Xiaomin)[62](index=62&type=chunk) - Chairman and President: **Mr. Wang Feifei**[62](index=62&type=chunk)

Group 1 - The company Huakong Kantech (01312) announced a construction contract for a research and development complex in Beijing [1] - The contract was signed between Tongfang Pharmaceutical, a wholly-owned subsidiary of the company, and Beijing Qingkong [1] - The estimated contract value is approximately RMB 33.67 million, subject to adjustments [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何 部分內容而產生或因依賴該等內容而引致之任何損失承擔任何責任。 北京清控為深圳華融泰的間接非全資附屬公司，而深圳華融泰為本公司的控股股 東，透過中國健康持有本公司全部已發行股本約56.77%。因此，北京清控為深圳 華融泰的聯繫人及本公司的關連人士，而北京建築合約項下擬進行的交易構成本 公司的關連交易，並須遵守上市規則第14A章項下的申報、公告及獨立股東批准 的規定。 – 1 – 一般事項 本公司將召開及舉行股東特別大會，以供獨立股東考慮並酌情批准北京建築合約 及其項下擬進行之交易。中國健康（於本公告日期直接持有合共3,172,778,000股 股份，佔本公司已發行股本的約56.77%）須於股東特別大會上就批准北京建築合 約及其項下擬進行之交易的決議案放棄投票。除上文所述者外，經董事作出一切 合理查詢後所深知、盡悉及確信，概無其他股東於北京建築合約項下擬進行之交 易中擁有任何重大權益並須於股東特別大會上放棄投票。 本公司已成立獨立董事委員會（由全部三名獨立非執行董事組 ...

Core Viewpoint - The company, Huakong Kante (01312), anticipates significant financial losses due to expected impairment losses on financial assets, intangible assets, and goodwill in its fitness segment, leading to a projected comprehensive net loss for the upcoming six-month period ending June 30, 2025 [1] Financial Projections - Expected impairment losses on financial assets are projected to be between HKD 154 million and HKD 185 million [1] - Anticipated impairment losses on intangible assets are estimated to range from HKD 113 million to HKD 124 million [1] - Projected goodwill impairment losses in the fitness segment are expected to be between HKD 80.4 million and HKD 88.8 million [1] Overall Loss Expectations - The company forecasts a comprehensive net loss of approximately HKD 283 million to HKD 346 million for the period ending June 30, 2025 [1] - For the six-month period ending June 30, 2024, the company reported a comprehensive net loss of about HKD 4.5 million [1]