Dear Registered Shareholders. China New City Group Limited (the "Company") – Notice of publication of 2025 Interim Report (the "Current Corporate Communication") The English and Chinese versions of the Company's Current Corporate Communication are now available on the Company's website at www.chinanewcity.com.cn and the website of The Stock Exchange of Hong Kong Limited (the "Stock Exchange") at www.hkexnews.hk, respectively (the "Website Version"). The Company strongly recommends you to access the Website ...

[Corporate Information](index=2&type=section&id=Corporate%20Information) [Corporate Overview](index=2&type=section&id=Corporate%20Information%20Overview) This chapter provides basic corporate governance and contact information, including details of board members, principal offices, share registrars, principal bankers, auditors, and investor relations department - Executive Directors include Mr. Shi Nanlu (CEO), Mr. Jin Jianrong, and Ms. Chen Jing (re-designated as Executive Directors from June 20, 2025)[3](index=3&type=chunk) - The Non-executive Director is Mr. Shi Zhongan (Chairman)[3](index=3&type=chunk) - Independent Non-executive Directors are Mr. Lin Youyao, Mr. Xu Chengfa, and Mr. Yuan Yuan[3](index=3&type=chunk) - The company's auditor is Ernst & Young[7](index=7&type=chunk) [Investment Properties](index=5&type=section&id=Investment%20Properties) [Investment Properties Summary](index=5&type=section&id=Investment%20Properties%20Summary) As of June 30, 2025, the Group's total land reserve gross floor area was approximately 3,673,020 sqm, with major investment properties in Hangzhou, Shanghai, and Yuyao, primarily commercial complexes and properties - As of June 30, 2025, the Group's total land reserve gross floor area was approximately **3,673,020 sqm**[9](index=9&type=chunk) - Major Investment Properties (As of June 30, 2025) | Project | Location | Property Type | Gross Floor Area (sqm) | | :--- | :--- | :--- | :--- | | Guomao Building | Hangzhou, Zhejiang Province | Commercial Complex | 12,061 | | Yinlong Bay | Hangzhou, Zhejiang Province | Commercial Complex | 18,053 | | Hang Lung Plaza | Hangzhou, Zhejiang Province | Commercial Complex | 63,418 | | Integrated Service Center | Hangzhou, Zhejiang Province | Commercial Complex | 5,913 | | International Office Center | Hangzhou, Zhejiang Province | Commercial Complex | 55,671 | | Yilexuan | Shanghai | Commercial | 341 | | Shanshuiyuan | Hangzhou, Zhejiang Province | Commercial Complex | 936 | | Xixi New City (Building 1) | Hangzhou, Zhejiang Province | Commercial | 16,680 | | Yiwu Project | Hangzhou, Zhejiang Province | Commercial | 45,812 | | Zhong'an Plaza | Yuyao, Zhejiang Province | Commercial Complex | 92,489 | | Zhong'an Times Square (Phase I) | Yuyao, Zhejiang Province | Commercial Complex | 2,160 | | **Total** | | | **313,534** | [Major Properties Held for Development and/or Sales](index=6&type=section&id=Major%20Properties%20Held%20for%20Development%20and/or%20Sales) [Properties Under Development and/or Sales Summary](index=6&type=section&id=Properties%20Under%20Development%20and/or%20Sales%20Summary) This chapter lists the Group's major properties held for development and/or sales, covering various property types including commercial, hotel, office, and commercial complexes across Anhui, Ningbo, Hangzhou, Zhejiang, and Jiangsu, with a total land reserve gross floor area of 3,673,020 sqm - Major Properties Held for Development and/or Sales | Project | Location | Property Type | Site Area (sqm) | Gross Floor Area (sqm) | Land Reserve Gross Floor Area (sqm) | | :--- | :--- | :--- | :--- | :--- | :--- | | Huaibei Brilliant Hotel | Huaibei, Anhui Province | Commercial/Hotel | 60,768 | 67,060 | 67,060 | | Cixi New City | Cixi, Ningbo | Office/Commercial | 197,655 | 510,125 | 4,567 | | Mingcai City | Hangzhou, Zhejiang Province | Commercial | 26,087 | 78,261 | 4,799 | | Hangzhou Qiandao Lake Brilliant Resort & Spa | Hangzhou, Zhejiang Province | Commercial/Hotel | 119,398 | 46,691 | 46,691 | | Yinlong Bay | Hangzhou, Zhejiang Province | Commercial | 89,173 | 241,695 | 39,386 | | International Office Center (Block A) | Hangzhou, Zhejiang Province | Commercial Complex | 92,610 | 798,795 | 471,963 | | International Office Center (Blocks B & C) | Hangzhou, Zhejiang Province | Commercial Complex | 207,390 | 1,098,065 | 1,098,065 | | Longying Huijinzuo (Beigan Project) | Hangzhou/Xiaoshan | Commercial | 12,819 | 44,867 | 22,032 | | Tuankou Fenghuangshan Hot Spring Hotel | Hangzhou, Zhejiang Province | Commercial/Hotel | 37,500 | 63,502 | 63,502 | | Xin Nong Du | Zhejiang Province | Commercial | 991,736 | 1,217,335 | 1,055,987 | | Xixi New City | Hangzhou, Zhejiang Province | Office/Commercial | 39,703 | 83,391 | 665 | | Xuzhou New City | Xuzhou, Jiangsu | Commercial Complex | 154,802 | 562,371 | 562,371 | | Zhong'an Times Square (Phase I) | Yuyao, Zhejiang Province | Commercial Complex | 65,159 | 305,473 | 132,475 | | Zhong'an Times Square (Phase II) | Yuyao, Zhejiang Province | Commercial Complex | 71,519 | 322,912 | 103,458 | | **Total** | | | | | **3,673,020** | [Management Discussion and Analysis](index=8&type=section&id=Management%20Discussion%20and%20Analysis) [Overview](index=9&type=section&id=Overview) The Group is a large integrated enterprise with businesses spanning commercial development, hotel management, film, education, and cultural tourism, establishing a leading position in the Yangtze River Delta region; revenue and gross profit significantly decreased due to reduced property sales, but total equity remained at RMB 5.262 billion - The Group's core business segments include industrial real estate development, commercial operations, hotel management, industrial investment, and diversified new industries such as industrial services, rural cultural tourism, smart agricultural wholesale, film and television education, and digital health[16](index=16&type=chunk) - Key Financial Indicators for the Period | Indicator | Amount (RMB) | Y-o-Y Change (%) | | :--- | :--- | :--- | | Consolidated Revenue | 366 million | -87.5% | | Gross Profit | 77 million | -95.1% | | Gross Profit Margin | 21.0% | Decrease of 33.1 percentage points | | Total Equity (as of June 30, 2025) | 5.262 billion | - | | Cash Book Value (as of June 30, 2025) | 226 million | - | [Policy and Outlook](index=10&type=section&id=Policy%20and%20Outlook) China's 2025 real estate policy aims for 'stabilization and recovery' through a comprehensive package of 'four cancellations, four reductions, and two increases' to restore market confidence and drive quality-focused industry transformation, while the Group will maintain prudent operations, business innovation, and urban renewal - China's 2025 real estate policy focuses on 'stopping decline and stabilizing recovery', implementing a comprehensive package of 'four cancellations, four reductions, and two increases'[19](index=19&type=chunk)[22](index=22&type=chunk) - The 'four cancellations' include abolishing purchase restrictions, sales restrictions, price caps, and ordinary housing standards (partially retained in Beijing, Shanghai, Guangzhou, and Shenzhen)[19](index=19&type=chunk)[22](index=22&type=chunk) - The 'four reductions' include lowering down payment ratios, mortgage interest rates, existing mortgage interest rates, and transaction taxes and fees[19](index=19&type=chunk)[22](index=22&type=chunk) - The 'two increases' include adding **1 million units** for urban village renovation (monetized resettlement) and over **RMB 4 trillion** in financing for real estate enterprises on the 'white list'[19](index=19&type=chunk)[22](index=22&type=chunk) - The Group will continue to uphold a prudent operating philosophy, maintain financial stability, intensify business innovation, and steadfastly advance urban renewal projects[21](index=21&type=chunk)[23](index=23&type=chunk) [Development of Major Projects](index=11&type=section&id=Development%20of%20Major%20Projects) This chapter outlines the progress of the Group's major property development projects, including Hangzhou International Office Center (IOC) and Longying Huijinzuo (Binhe Yin), noting a significant decrease in recognized property sales and delivered gross floor area during the period - Hangzhou International Office Center (IOC) Block A3 is substantially sold out, and Block A2 sales are in line with expectations[24](index=24&type=chunk)[25](index=25&type=chunk) - The Longying Huijinzuo (Binhe Yin) project was completed in 2024, with sales for the period meeting expectations[27](index=27&type=chunk)[29](index=29&type=chunk) - Overview of Recognized Sales and Delivered Properties | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Recognized Sales Amount | Approximately RMB 175.269 million | Approximately RMB 2.72353 billion | Significant decrease | | Total Gross Floor Area Delivered | Approximately 10,415 sqm | Approximately 73,493 sqm | Significant decrease | - Details of Projects with Recognized Sales for the Period | Project | Region | Recognized Amount (RMB million) | Recognized Sales Area (sqm) | | :--- | :--- | :--- | :--- | | Longying Huijinzuo (Binhe Yin) | Hangzhou | 133.8 | 6,212 | | Mingcai City | Hangzhou | 28.8 | 2,225 | | Zhong'an Times Square Phase II | Yuyao | 6.9 | 1,200 | | Cixi New City | Cixi | 5.4 | 778 | | Other remaining properties | Hangzhou | 0.4 | – | | **Total** | | **175.3** | **10,415** | [Contracted Sales](index=13&type=section&id=Contracted%20Sales) During the period, the Group's contracted sales area and contracted sales revenue both significantly decreased compared to the same period last year - Overview of Contracted Sales | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Contracted Sales Area | Approximately 14,981 sqm | Approximately 29,997 sqm | Decrease of approximately 50% | | Contracted Sales Revenue | Approximately RMB 326.848 million | Approximately RMB 663.35 million | Decrease of approximately 50.7% | - Details of Major Project Contracted Sales for the Period | Project | Region | Contracted Amount (RMB million) | Contracted Sales Area (sqm) | | :--- | :--- | :--- | :--- | | International Office Center (IOC) A2 | Hangzhou | 195.9 | 4,845 | | Xin Nong Du | Hangzhou | 74.5 | 7,489 | | Longying Huijinzuo (Binhe Yin) | Hangzhou | 48.2 | 1,943 | | Mingcai City | Hangzhou | 5.0 | 312 | | Cixi New City | Cixi | 2.8 | 392 | | Zhong'an Times Square Phase II | Yuyao | 0.5 | – | | Chaoyang Ginza | Hangzhou | 0.1 | – | | **Total** | | **326.8** | **14,981** | [Hotel Management](index=13&type=section&id=Hotel%20Management) The Group's hotel management revenue decreased due to a weak market and lower occupancy rates, managing four self-owned hotels during the period - Hotel Management Revenue and Occupancy Rate | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Hotel Management Revenue | Approximately RMB 99.181 million | Approximately RMB 112.651 million | Decrease of approximately RMB 13.47 million | | Average Occupancy Rate | Approximately 60% | Approximately 62% | Decrease of 2 percentage points | - The Group manages four self-owned hotels, including Holiday Inn Hangzhou Xiaoshan, Hangzhou Qiandao Lake Brilliant Resort & Spa, Ningbo Brilliant Hotel, and Huaibei Brilliant Hotel[35](index=35&type=chunk) [Commercial Operation](index=14&type=section&id=Commercial%20Operation) The Group's total commercial operation revenue increased, primarily driven by new community commercial projects, higher occupancy at Yuyao Zhong'an Plaza, and increased per-square-meter rent at Yiwu Zhong'an Plaza, despite a slight decrease in overall average occupancy rate - Commercial Operation Revenue and Occupancy Rate | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Total Commercial Operation Revenue | Approximately RMB 64.896 million | Approximately RMB 48.646 million | Increase of approximately RMB 16.25 million | | Average Occupancy Rate of Leased Properties | Approximately 80% | Approximately 84% | Decrease of 4 percentage points | - Revenue growth primarily benefited from revenue generation from new community commercial projects, increased occupancy at Yuyao Zhong'an Plaza, and higher per-square-meter rent at Yiwu Zhong'an Plaza[37](index=37&type=chunk)[39](index=39&type=chunk) [Land Reserve](index=14&type=section&id=Land%20Reserve) As of June 30, 2025, the Group's total land reserve gross floor area held for development and/or sales slightly decreased - Total Land Reserve Gross Floor Area | As of | Total Gross Floor Area (sqm) | | :--- | :--- | | June 30, 2025 | Approximately 3,673,020 | | December 31, 2024 | Approximately 3,690,924 | [Financial Performance Analysis](index=15&type=section&id=Financial%20Performance%20Analysis) During the period, the Group's consolidated revenue and gross profit significantly declined due to a substantial decrease in property sales, resulting in a loss; despite improved cost control efficiency, increased impairment of financial assets and property and equipment, along with higher finance costs, further impacted profitability - Overview of Revenue and Gross Profit | Indicator | Six Months Ended June 30, 2025 (RMB '000) | Six Months Ended June 30, 2024 (RMB '000) | Y-o-Y Change (RMB '000) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | :--- | | Consolidated Revenue | 366,307 | 2,921,774 | (2,555,467) | -87.5% | | Consolidated Gross Profit | 77,089 | 1,579,596 | (1,502,507) | -95.1% | | Gross Profit Margin | 21.0% | 54.1% | -33.1 percentage points | - | - Other Income and Gains | Indicator | Six Months Ended June 30, 2025 (RMB '000) | Six Months Ended June 30, 2024 (RMB '000) | Y-o-Y Change (RMB '000) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | :--- | | Other Income and Gains | 174,232 | 25,876 | 148,356 | 573.3% | - The increase in other income and gains was primarily due to the difference between the fair value of the Group's share of an associate's identifiable net assets and the investment cost, amounting to approximately **RMB 153.398 million**[44](index=44&type=chunk)[49](index=49&type=chunk) - Overview of Expenses and Costs | Indicator | Six Months Ended June 30, 2025 (RMB '000) | Six Months Ended June 30, 2024 (RMB '000) | Y-o-Y Change (RMB '000) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 53,587 | 66,588 | (13,001) | -19.5% | | Administrative Expenses | 45,165 | 67,991 | (22,826) | -33.6% | | Other Expenses | 79,080 | 5,833 | 73,247 | 1,255.7% | | Finance Costs | 97,642 | 47,317 | 50,325 | 106.4% | - The decrease in selling and distribution expenses and administrative expenses was primarily due to the Group's effective implementation of cost management strategies[45](index=45&type=chunk)[46](index=46&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk) - The significant increase in other expenses was primarily due to increased impairment of financial assets, property and equipment[52](index=52&type=chunk)[56](index=56&type=chunk) - The increase in finance costs was primarily due to a decrease in capitalized interest expenses and an increase in loan balances[53](index=53&type=chunk)[57](index=57&type=chunk) - Loss and Capital Expenditure for the Period | Indicator | Six Months Ended June 30, 2025 (RMB '000) | Six Months Ended June 30, 2024 (RMB '000) | | :--- | :--- | :--- | | Loss Attributable for the Period | (39,448) | 347,502 (Profit) | | Capital Expenditure on Property and Equipment | 31,016 | 24,835 | - The loss for the period was primarily due to a significant decrease in revenue generated from the sales of commercial property projects[54](index=54&type=chunk)[58](index=58&type=chunk) [Investments in an Associate](index=17&type=section&id=Investments%20in%20an%20Associate) As of June 30, 2025, the Company recorded an investment of approximately RMB 681.9 million in Zhejiang Xin Nong Du Holdings Group Co., Ltd., reclassified from a financial asset to an associate investment after the Group increased its equity stake to 42.5% - Investments in an Associate | Indicator | As of June 30, 2025 (RMB million) | As of December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Investments in an associate | 681.9 | – | - The Group increased its equity stake in Zhejiang Xin Nong Du Holdings Group Co., Ltd. to **42.5%** through an equity transfer agreement and a deed of settlement, gaining significant influence[62](index=62&type=chunk)[64](index=64&type=chunk) - This equity interest was derecognized as a financial asset and recognized as an investment in an associate as of June 30, 2025[62](index=62&type=chunk)[64](index=64&type=chunk) [Significant Investments](index=17&type=section&id=Significant%20Investments) During the period, the Group did not hold any significant investments - During the period, the Group did not hold any significant investments[63](index=63&type=chunk)[65](index=65&type=chunk) [Capital Structure](index=18&type=section&id=Capital%20Structure) The Group's total cash and cash equivalents significantly decreased, while total interest-bearing bank and other borrowings increased, leading to a higher gearing ratio; the current ratio, however, improved - Cash and Cash Equivalents and Restricted Cash | Indicator | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | Y-o-Y Change (RMB '000) | | :--- | :--- | :--- | :--- | | Total cash and cash equivalents and restricted cash | 225,937 | 886,087 | (660,150) | - Current Ratio and Gearing Ratio | Indicator | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Current Ratio | 1.67 | 1.12 | | Gearing Ratio | 52% | 46% | - Interest-Bearing Bank and Other Borrowings | Repayment Term | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within one year | 327,079 | 1,072,160 | | After one year | 4,127,840 | 2,327,020 | | **Total** | **4,454,919** | **3,399,180** | - As of June 30, 2025, approximately **RMB 1.043919 billion** of bank and other borrowings bore interest at fixed rates, with the remainder bearing interest at floating rates[68](index=68&type=chunk)[71](index=71&type=chunk) [Pledge of Assets](index=18&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, approximately RMB 4.454919 billion of the Group's bank and other borrowings were secured by various pledged assets, with the total value of pledged assets increasing from the end of last year - Details of Pledged Assets | Asset Class | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Property and equipment | 1,507,805 | 957,123 | | Investment properties | 3,005,621 | 3,043,315 | | Completed properties held for sale | 2,377,202 | 2,328,953 | | Investments in an associate | 318,475 | – | | **Total** | **7,209,103** | **6,329,391** | [Foreign Exchange Risk and Treasury Policies](index=19&type=section&id=Foreign%20Exchange%20Risk%20and%20Treasury%20Policies) The Group primarily operates in China with revenue, costs, and borrowings denominated in RMB, resulting in minimal foreign exchange rate fluctuation risk; it adopts a prudent treasury policy, holding cash mainly in short-term RMB deposits, and did not use any hedging instruments during the period - The Group primarily operates in China, with revenue, operating costs, and borrowings mainly denominated in RMB, resulting in minimal foreign exchange rate fluctuation risk[74](index=74&type=chunk)[79](index=79&type=chunk) - The Group's borrowing interest rates are floating and fixed, and upward fluctuations in interest rates will increase borrowing costs[74](index=74&type=chunk)[79](index=79&type=chunk) - The Group adopts a prudent treasury policy for cash and financial management, with cash typically held as short-term RMB deposits[75](index=75&type=chunk)[79](index=79&type=chunk) - No financial instruments were used for hedging purposes during the period[75](index=75&type=chunk)[79](index=79&type=chunk) [Guarantees and Contingent Liabilities](index=19&type=section&id=Guarantees%20and%20Contingent%20Liabilities) As of June 30, 2025, the Group's contingent liabilities primarily consisted of guarantees for property buyers' mortgage loans, with the total amount decreasing from the end of last year; directors believe the net realizable value of the related properties is sufficient to cover potential default risks - Overview of Contingent Liabilities | Indicator | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Total contingent liabilities | 286,410 | 359,727 | - Contingent liabilities primarily consist of guarantees provided by the Group for mortgage loans granted by certain banks to buyers of the Group's properties[76](index=76&type=chunk)[80](index=80&type=chunk) - The directors believe that in the event of default, the net realizable value of the related properties would be sufficient to repay the outstanding mortgage loans and any accrued interest and penalties, thus no provision has been made for these guarantees[76](index=76&type=chunk) [Capital Commitments](index=19&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group's capital commitments for property development expenditures slightly decreased and are expected to be funded by internal resources and bank borrowings - Capital Commitments for Property Development Expenditures | Indicator | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Capital commitments for property development expenditures | 156,839 | 160,697 | - The Group expects to fund the related capital commitments through its internal resources and bank borrowings[77](index=77&type=chunk)[81](index=81&type=chunk) [Human Resources and Remuneration Policy](index=19&type=section&id=Human%20Resources%20and%20Remuneration%20Policy) As of June 30, 2025, the Group's employee headcount decreased; remuneration policy considers market conditions, industry standards, inflation, business performance, and employee performance, with annual appraisals and continuous training to enhance competitiveness - Number of Employees | As of | Number of Employees | | :--- | :--- | | June 30, 2025 | 1,147 | | December 31, 2024 | 1,232 | - Employee remuneration policy is determined by considering various factors such as local market salary conditions, overall industry salary levels, inflation, corporate operating performance, and employee performance[78](index=78&type=chunk)[82](index=82&type=chunk) - The Group conducts annual performance appraisals for employees, with results used for salary reviews and promotion assessments, and provides continuous education and training programs[78](index=78&type=chunk)[82](index=82&type=chunk) [Independent Review Report](index=20&type=section&id=Independent%20Review%20Report) [Independent Review Report Summary](index=20&type=section&id=Independent%20Review%20Report%20Summary) Ernst & Young has reviewed the Group's interim financial information for the six months ended June 30, 2025, in accordance with Hong Kong Standard on Review Engagements 2410, concluding no material matters indicating non-preparation in all material respects under International Accounting Standard 34 - The review was conducted by **Ernst & Young**[84](index=84&type=chunk)[90](index=90&type=chunk) - The scope of the review covered the interim financial information for the six months ended June 30, 2025, and complied with International Accounting Standard 34 'Interim Financial Reporting' and Hong Kong Standard on Review Engagements 2410[84](index=84&type=chunk)[86](index=86&type=chunk) - The review concluded that nothing has come to our attention that causes us to believe the interim financial information is not prepared, in all material respects, in accordance with International Accounting Standard 34[87](index=87&type=chunk)[89](index=89&type=chunk) [Interim Condensed Consolidated Statement of Profit or Loss](index=22&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) [Profit or Loss Summary](index=22&type=section&id=Profit%20or%20Loss%20Summary) For the six months ended June 30, 2025, the Group recorded a net loss of RMB 39.448 million, a significant turnaround from a profit in the prior year, primarily due to a substantial decrease in revenue and gross profit from property sales, despite an increase in other income and gains - Key Data from Interim Condensed Consolidated Statement of Profit or Loss | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | Y-o-Y Change (RMB '000) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 366,307 | 2,921,774 | (2,555,467) | -87.5% | | Gross Profit | 77,089 | 1,579,596 | (1,502,507) | -95.1% | | Other Income and Gains | 174,232 | 25,876 | 148,356 | 573.3% | | Selling and Distribution Expenses | (53,587) | (66,588) | 13,001 | -19.5% | | Administrative Expenses | (45,165) | (67,991) | 22,826 | -33.6% | | Other Expenses | (79,080) | (5,833) | (73,247) | 1,255.7% | | Finance Costs | (97,642) | (47,317) | (50,325) | 106.4% | | Fair value changes of investment properties | (8,600) | (535,900) | 527,300 | -98.4% | | Loss/(Profit) before tax | (32,753) | 877,358 | (910,111) | -103.7% | | Income Tax Expense | (6,695) | (529,856) | 523,161 | -98.7% | | Loss/(Profit) for the period | (39,448) | 347,502 | (386,950) | -111.3% | | Loss/(Profit) attributable to owners of the parent | (35,522) | 377,789 | (413,311) | -109.4% | | Basic and diluted loss/(earnings) per share | RMB (1.77) cents | RMB 18.79 cents | - | - | [Interim Condensed Consolidated Statement of Comprehensive Income](index=23&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) [Comprehensive Income Summary](index=23&type=section&id=Comprehensive%20Income%20Summary) For the six months ended June 30, 2025, the Group recorded a total comprehensive loss of RMB 75.937 million, primarily due to the net loss for the period and exchange differences arising from the translation of overseas subsidiaries and operations - Key Data from Interim Condensed Consolidated Statement of Comprehensive Income | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | Y-o-Y Change (RMB '000) | | :--- | :--- | :--- | | Loss/(Profit) for the period | (39,448) | 347,502 | (386,950) | | Exchange differences arising from translation of financial statements of overseas subsidiaries | (7,613) | 10,812 | (18,425) | | Exchange differences arising from translation of overseas operations | (12,467) | 5,690 | (18,157) | | Equity investments designated at fair value through other comprehensive income: fair value changes | (21,879) | (1,982) | (19,897) | | **Total comprehensive loss/(income) for the period** | **(75,937)** | **362,518** | **(438,455)** | | Total comprehensive loss/(income) attributable to owners of the parent | (72,011) | 392,805 | (464,816) | [Interim Condensed Consolidated Statement of Financial Position](index=24&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) [Financial Position Summary](index=24&type=section&id=Financial%20Position%20Summary) As of June 30, 2025, the Group's total assets and total liabilities both slightly decreased, leading to a reduction in net assets and total equity; however, net current assets significantly increased, primarily due to a substantial decrease in current liabilities - Key Data from Interim Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | Change (RMB '000) | | :--- | :--- | :--- | :--- | | Total non-current assets | 7,875,606 | 7,736,991 | 138,615 | | Total current assets | 5,406,824 | 5,648,736 | (241,912) | | **Total assets** | **13,282,430** | **13,385,727** | **(103,297)** | | Total current liabilities | 3,229,136 | 5,055,477 | (1,826,341) | | Total non-current liabilities | 4,790,813 | 2,988,116 | 1,802,697 | | **Total liabilities** | **8,019,949** | **8,043,593** | **(23,644)** | | **Net assets** | **5,262,481** | **5,342,134** | **(79,653)** | | Total equity | 5,262,481 | 5,342,134 | (79,653) | | Net current assets | 2,177,688 | 593,259 | 1,584,429 | - Amounts due from related companies significantly increased from **RMB 237.788 million** to **RMB 965.03 million**[95](index=95&type=chunk) - Contract liabilities significantly decreased from **RMB 923.714 million** to **RMB 286.895 million**[95](index=95&type=chunk) - Non-current interest-bearing bank and other borrowings significantly increased from **RMB 2.32702 billion** to **RMB 4.12784 billion**[96](index=96&type=chunk) [Interim Condensed Consolidated Statement of Changes in Equity](index=26&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) [Changes in Equity Summary](index=26&type=section&id=Changes%20in%20Equity%20Summary) For the six months ended June 30, 2025, the Group's total equity decreased, primarily due to the loss for the period and other comprehensive losses, partially offset by capital contributions from non-controlling shareholders - Overview of Changes in Equity | Indicator | As of January 1, 2025 (RMB '000) | Changes for the Period (RMB '000) | As of June 30, 2025 (RMB '000) | | :--- | :--- | :--- | :--- | | Equity attributable to owners of the parent | 5,265,498 | (76,127) | 5,189,371 | | Non-controlling interests | 76,636 | (3,526) | 73,110 | | **Total equity** | **5,342,134** | **(79,653)** | **5,262,481** | - Loss attributable to owners of the parent for the period was **RMB 35.522 million**[98](index=98&type=chunk) - Total comprehensive loss for the period was **RMB 75.937 million**, of which **RMB 72.011 million** was attributable to owners of the parent[98](index=98&type=chunk) - Capital contribution from non-controlling shareholders was **RMB 400,000**[98](index=98&type=chunk) [Interim Condensed Consolidated Statement of Cash Flows](index=27&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) [Cash Flows Summary](index=27&type=section&id=Cash%20Flows%20Summary) For the six months ended June 30, 2025, the Group experienced significant net cash outflows from both operating and investing activities, and despite net cash inflows from financing activities, overall cash and cash equivalents substantially decreased - Key Data from Interim Condensed Consolidated Statement of Cash Flows | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | Change (RMB '000) | | :--- | :--- | :--- | :--- | | Net cash (used in)/generated from operating activities | (839,404) | 193,901 | (1,033,305) | | Net cash used in investing activities | (838,082) | (119,191) | (718,891) | | Net cash generated from/(used in) financing activities | 1,046,713 | (130,927) | 1,177,640 | | Net decrease in cash and cash equivalents | (630,773) | (56,217) | (574,556) | | Cash and cash equivalents at end of period | 208,647 | 123,710 | 84,937 | - In investing activities, an increase in amounts due from an associate of **RMB 727.242 million** led to cash outflow[101](index=101&type=chunk) - In financing activities, new interest-bearing bank and other borrowings of **RMB 2.563919 billion** generated cash inflow[101](index=101&type=chunk) [Notes to Interim Condensed Consolidated Financial Information](index=29&type=section&id=Notes%20to%20Interim%20Condensed%20Consolidated%20Financial%20Information) [1. CORPORATE INFORMATION](index=29&type=section&id=1.%20CORPORATE%20INFORMATION) This note reiterates the Company's registration information, its nature as an investment holding company, and the Group's principal businesses in commercial property development, leasing, and hotel operations, with the ultimate holding company being Quanhao Management Limited - The Company was incorporated in the Cayman Islands as an exempted company with limited liability on **July 2, 2013**[102](index=102&type=chunk) - The Group is principally engaged in commercial property development, leasing, and hotel operations[103](index=103&type=chunk) - The Company's ultimate holding company is Quanhao Management Limited[104](index=104&type=chunk) [2. BASIS OF PREPARATION AND ACCOUNTING POLICIES](index=30&type=section&id=2.%20BASIS%20OF%20PREPARATION%20AND%20ACCOUNTING%20POLICIES) This interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 and is consistent with the accounting policies adopted for the annual financial information for the year ended December 31, 2024, except for the initial adoption of the revised International Accounting Standard 21, which had no significant financial impact - The interim condensed consolidated financial information has been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' issued by the International Accounting Standards Board[106](index=106&type=chunk) - The accounting policies are consistent with those adopted in the annual financial information for the year ended December 31, 2024, except for the initial adoption of the revised International Accounting Standard 21 'Lack of Exchangeability'[108](index=108&type=chunk)[111](index=111&type=chunk) - The new and revised standards did not have any significant financial impact on these financial statements[109](index=109&type=chunk)[112](index=112&type=chunk) [3. OPERATING SEGMENT INFORMATION](index=31&type=section&id=3.%20OPERATING%20SEGMENT%20INFORMATION) The Group has four reportable operating segments: commercial property development, property leasing, hotel operations, and other services; during the period, commercial property development revenue significantly decreased, while property leasing revenue increased, with all external customer revenue originating from mainland China - The Group's four reportable operating segments are: commercial property development, property leasing, hotel operations, and other services[113](index=113&type=chunk)[117](index=117&type=chunk) - Overview of Segment Revenue (RMB '000) | Segment | 2025 (Unaudited) | 2024 (Unaudited) | Y-o-Y Change (RMB '000) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | :--- | | Commercial property development | 175,269 | 2,723,530 | (2,548,261) | -93.6% | | Property leasing | 64,896 | 48,646 | 16,250 | 33.4% | | Hotel operations | 99,181 | 112,651 | (13,470) | -12.0% | | Other services | 26,961 | 36,947 | (9,986) | -27.0% | | **Total sales to external customers** | **366,307** | **2,921,774** | **(2,555,467)** | **-87.5%** | - Overview of Segment Results (RMB '000) | Segment | 2025 (Unaudited) | 2024 (Unaudited) | Change (RMB '000) | | :--- | :--- | :--- | :--- | | Commercial property development | (19,071) | 1,403,421 | (1,422,492) | | Property leasing | 12,049 | (426,319) | 438,368 | | Hotel operations | (20,646) | (30,498) | 9,852 | | Other services | 76,145 | (26,026) | 102,171 | | **Total segment results** | **48,477** | **920,578** | **(872,101)** | - All revenue from external customers was derived from mainland China[131](index=131&type=chunk) [4. REVENUE, OTHER INCOME AND GAINS](index=37&type=section&id=4.%20REVENUE,%20OTHER%20INCOME%20AND%20GAINS) This note provides a detailed analysis of the Group's revenue, other income, and gains; revenue from contracts with customers significantly decreased, while other income and gains substantially increased, primarily benefiting from gains on remeasurement of investments in an associate - Analysis of Revenue Sources (RMB '000) | Revenue Source | 2025 (Unaudited) | 2024 (Unaudited) | Y-o-Y Change (RMB '000) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue from contracts with customers | 301,411 | 2,873,128 | (2,571,717) | -89.5% | | Gross rental income from operating leases of investment properties | 64,896 | 48,646 | 16,250 | 33.4% | | **Total** | **366,307** | **2,921,774** | **(2,555,467)** | **-87.5%** | - Disaggregated Information of Revenue from Contracts with Customers (RMB '000) | Type of goods or services | 2025 (Unaudited) | 2024 (Unaudited) | Y-o-Y Change (RMB '000) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | :--- | | Sales of properties | 175,269 | 2,723,530 | (2,548,261) | -93.6% | | Hotel operation income | 99,181 | 112,651 | (13,470) | -12.0% | | Other services | 26,961 | 36,947 | (9,986) | -27.0% | | **Total** | **301,411** | **2,873,128** | **(2,571,717)** | **-89.5%** | - Details of Other Income and Gains (RMB '000) | Source | 2025 (Unaudited) | 2024 (Unaudited) | Y-o-Y Change (RMB '000) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | :--- | | Subsidy income | 570 | 80 | 490 | 612.5% | | Interest income | 16,412 | 4,097 | 12,315 | 300.6% | | Other income | 3,852 | 4,137 | (285) | -6.9% | | Gain on remeasurement of investment in an associate | 153,398 | – | 153,398 | Not applicable | | **Total** | **174,232** | **25,876** | **148,356** | **573.3%** | - The gain on remeasurement of investment in an associate of approximately **RMB 153.398 million** was primarily due to the difference between the fair value of the identifiable net assets of Zhejiang Xin Nong Du Holdings Group Co., Ltd. and the investment cost, after the Group increased its equity stake to **42.5%**[147](index=147&type=chunk) [5. LOSS/PROFIT BEFORE TAX](index=42&type=section&id=5.%20LOSS/PROFIT%20BEFORE%20TAX) This note lists the various expenses and gains contributing to the Group's loss before tax, including cost of properties sold, depreciation, staff costs, fair value loss on investment properties, and impairment provisions for financial assets and property and equipment, while also incorporating the gain on remeasurement of investment in an associate - Components of Loss/Profit Before Tax (RMB '000) | Item | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Cost of properties sold | 175,036 | 1,217,435 | | Depreciation of property and equipment | 57,275 | 62,147 | | Staff costs (including directors' and chief executive's emoluments) | 42,240 | 50,995 | | Fair value changes of investment properties | 8,600 | 535,900 | | Gain on remeasurement of investment in an associate | (153,398) | – | | Impairment provision for financial assets | 48,367 | – | | Impairment provision for property and equipment | 24,186 | – | | Impairment provision for right-of-use assets | 337 | – | [6. INCOME TAX EXPENSE](index=43&type=section&id=6.%20INCOME%20TAX%20EXPENSE) This note shows a significant decrease in the Group's income tax expense, primarily due to reductions in China income tax and Land Appreciation Tax (LAT); China income tax is levied at 25%, while LAT is levied at progressive rates from 30% to 60% - Details of Income Tax Expense (RMB '000) | Item | 2025 (Unaudited) | 2024 (Unaudited) | Y-o-Y Change (RMB '000) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | :--- | | China income tax for the period | 14,306 | 295,642 | (281,336) | -95.2% | | China Land Appreciation Tax for the period | 6,006 | 428,946 | (422,940) | -98.6% | | Deferred tax | (13,617) | (194,732) | 181,115 | -93.0% | | **Total tax expense for the period** | **6,695** | **529,856** | **(523,161)** | **-98.7%** | - China income tax is provided at the applicable tax rate of **25%**[153](index=153&type=chunk) - China Land Appreciation Tax is levied at progressive rates ranging from **30% to 60%** on the appreciation of land value[154](index=154&type=chunk) [7. (LOSS)/EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT](index=44&type=section&id=7.%20(LOSS)/EARNINGS%20PER%20SHARE%20ATTRIBUTABLE%20TO%20ORDINARY%20EQUITY%20HOLDERS%20OF%20THE%20PARENT) This note discloses the Group's basic and diluted loss per share for the six months ended June 30, 2025, contrasting with the earnings per share for the same period last year - Loss/(Earnings) Per Share Data | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Loss/(Profit) attributable to ordinary equity holders of the parent (RMB '000) | (35,522) | 377,789 | | Weighted average number of ordinary shares in issue during the period | 2,010,768,000 | 2,010,768,000 | | **Basic and diluted loss/(earnings) per share** | **RMB (1.77) cents** | **RMB 18.79 cents** | - During the period ended June 30, 2025, the Group had no outstanding potential dilutive ordinary shares[160](index=160&type=chunk) [8. PROPERTY AND EQUIPMENT](index=45&type=section&id=8.%20PROPERTY%20AND%20EQUIPMENT) This note details changes in the Group's property and equipment, including additions, disposals, and impairment losses; as of June 30, 2025, a significant portion of property and equipment was pledged as collateral for bank loans - Changes in Property and Equipment (RMB '000) | Item | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Cost of additions to property and equipment | 31,016 | 24,835 | | Net book value of property and equipment disposed of | 3,625 | 7,337 | | Impairment loss on property and equipment | 24,186 | – | - As of June 30, 2025, property and equipment with a net book value of approximately **RMB 1.507805 billion** were pledged as collateral for the Group's interest-bearing bank loans[162](index=162&type=chunk) [9. INVESTMENT PROPERTIES](index=46&type=section&id=9.%20INVESTMENT%20PROPERTIES) This note discloses changes in the fair value and pledge status of the Group's investment properties; as of June 30, 2025, investment properties were revalued by independent valuers, resulting in a fair value loss, with most properties pledged as collateral - Fair Value Changes of Investment Properties (RMB '000) | Item | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Fair value changes of investment properties | (8,600) | (495,100) | | Disposal of investment properties held for sale | (19,900) | – | - The Group's investment properties as of June 30, 2025, were revalued at fair value with the assistance of independent professional qualified valuer, Huichen Appraisal Advisory Co., Ltd[165](index=165&type=chunk) - As of June 30, 2025, certain investment property items with a net book value of approximately **RMB 3.005621 billion** were pledged as collateral for the Group's interest-bearing bank and other borrowings[166](index=166&type=chunk) [10. PROPERTIES UNDER DEVELOPMENT](index=47&type=section&id=10.%20PROPERTIES%20UNDER%20DEVELOPMENT) This note describes the changes in the carrying value of the Group's properties under development, which slightly increased as of June 30, 2025, with most located in mainland China - Carrying Value of Properties Under Development (RMB '000) | Indicator | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Carrying value at end of period/year | 447,663 | 439,451 | | Carrying value at beginning of period/year | 439,451 | 3,317,279 | | Additions | 8,212 | 1,749,993 | - Except for one property located in Japan, the remaining properties under development of the Group are all located in mainland China[170](index=170&type=chunk) [11. EQUITY INVESTMENTS DESIGNATED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME](index=48&type=section&id=11.%20EQUITY%20INVESTMENTS%20DESIGNATED%20AT%20FAIR%20VALUE%20THROUGH%20OTHER%20COMPREHENSIVE%20INCOME) This note explains that as of June 30, 2025, the Group's balance of equity investments designated at fair value through other comprehensive income was zero, as the investment in Zhejiang Xin Nong Du was reclassified as an investment in an associate - Equity Investments Designated at Fair Value Through Other Comprehensive Income (RMB '000) | As of | Amount | | :--- | :--- | | June 30, 2025 | – | | December 31, 2024 | 340,354 | - As the Group's equity stake in Zhejiang Xin Nong Du Holdings Group Co., Ltd. increased to **42.5%**, giving it significant influence, this equity interest was derecognized as a financial asset and recognized as an investment in an associate as of June 30, 2025[62](index=62&type=chunk)[173](index=173&type=chunk) [12. COMPLETED PROPERTIES HELD FOR SALE](index=48&type=section&id=12.%20COMPLETED%20PROPERTIES%20HELD%20FOR%20SALE) This note explains that the carrying value of the Group's completed properties held for sale decreased due to sales, with most properties pledged as collateral for borrowings - Carrying Value of Completed Properties Held for Sale (RMB '000) | Indicator | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Carrying value at end of period/year | 3,910,663 | 4,085,699 | | Cost of properties sold | (175,036) | (1,818,398) | - As of June 30, 2025, certain completed properties held for sale with a carrying value of **RMB 2.377202 billion** were pledged as collateral for the Group's interest-bearing bank and other borrowings[176](index=176&type=chunk) [13. TRADE RECEIVABLES](index=49&type=section&id=13.%20TRADE%20RECEIVABLES) This note provides an aging analysis of the Group's trade receivables, showing an increase in the total amount, with most due within six months - Aging Analysis of Trade Receivables (RMB '000) | Aging | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Within 6 months | 65,119 | 55,063 | | Over 6 months but within 1 year | 7,180 | 4,802 | | Over 1 year but within 2 years | 3,281 | 1,216 | | **Total** | **75,580** | **61,081** | [14. CASH AND CASH EQUIVALENTS AND RESTRICTED CASH](index=49&type=section&id=14.%20CASH%20AND%20CASH%20EQUIVALENTS%20AND%20RESTRICTED%20CASH) This note details the composition and changes in the Group's cash and cash equivalents and restricted cash; cash and bank balances significantly decreased, and restricted cash also decreased due to specific property development purposes - Cash and Cash Equivalents and Restricted Cash (RMB '000) | Indicator | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | Change (RMB '000) | | :--- | :--- | :--- | :--- | | Cash and bank balances | 225,937 | 886,087 | (660,150) | | Less: Restricted cash | 17,290 | 47,088 | (29,798) | | **Cash and cash equivalents** | **208,647** | **838,999** | **(630,352)** | - Restricted cash of approximately **RMB 17.29 million** (December 31, 2024: RMB 47.088 million) was held in designated bank accounts for specific property development purposes[183](index=183&type=chunk) [15. TRADE PAYABLES](index=51&type=section&id=15.%20TRADE%20PAYABLES) This note provides an aging analysis of the Group's trade payables, showing a decrease in the total amount, with most due within six months; these amounts are unsecured, interest-free, and typically settled according to construction progress - Aging Analysis of Trade Payables (RMB '000) | Aging | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Within 6 months | 733,802 | 701,370 | | Over 6 months but within 1 year | 330,547 | 828,857 | | Over 1 year but within 2 years | 5,946 | 3,557 | | Over 2 years but within 3 years | 7,006 | 9,524 | | **Total** | **1,077,301** | **1,543,308** | - The above balances are unsecured and interest-free, and are generally paid according to construction progress[187](index=187&type=chunk) [16. INTEREST-BEARING BANK AND OTHER BORROWINGS](index=52&type=section&id=16.%20INTEREST-BEARING%20BANK%20AND%20OTHER%20BORROWINGS) This note details the composition, repayment terms, interest rates, and collateral for the Group's interest-bearing bank and other borrowings; total borrowings significantly increased, with a larger increase in non-current borrowings and a higher proportion of fixed-rate borrowings, and various Group assets are pledged as collateral - Total Interest-Bearing Bank and Other Borrowings (RMB '000) | Category | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | Change (RMB '000) | | :--- | :--- | :--- | :--- | | Current | 327,079 | 1,072,160 | (745,081) | | Non-current | 4,127,840 | 2,327,020 | 1,800,820 | | **Total** | **4,454,919** | **3,399,180** | **1,055,739** | - As of June 30, 2025, approximately **RMB 1.043919 billion** of bank and other borrowings bore interest at fixed rates, with all other bank loans bearing interest at floating rates[190](index=190&type=chunk) - Effective Interest Rate and Currency Denomination | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Effective interest rate | 5.10% | 4.73% | | Currency denomination | RMB | RMB | - Details of Pledged Assets (RMB '000) | Asset Class | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Completed properties held for sale | 2,377,202 | 2,328,953 | | Property and equipment | 1,507,805 | 957,123 | | Investment properties | 3,005,621 | 3,043,315 | | Investments in an associate | 318,475 | – | | **Total** | **7,209,103** | **6,329,391** | - As of June 30, 2025, the Group had no borrowings guaranteed by Mr. Shi Zhongan, a non-executive director[196](index=196&type=chunk) [17. SHARE CAPITAL](index=55&type=section&id=17.%20SHARE%20CAPITAL) This note indicates that the Company's authorized and issued share capital remained unchanged during the reporting period - Overview of Share Capital | Category | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Authorized share capital (5,000,000,000 ordinary shares of HKD 0.10 each) | HKD 500,000 | HKD 500,000 | | Issued and fully paid share capital (2,010,768,000 ordinary shares of HKD 0.10 each) | 160,220 | 160,220 | [18. RELATED PARTY TRANSACTIONS](index=56&type=section&id=18.%20RELATED%20PARTY%20TRANSACTIONS) This note details the Group's outstanding balances and transactions with related parties, including a significant increase in amounts due from Zhong'an Group Co., Ltd., loans provided to related companies, and payments for property services - Outstanding Balances with Related Parties (RMB '000) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Amounts due from Zhong'an Group Co., Ltd. | 965,030 | 237,788 | | Amounts due to related companies (fellow subsidiaries) | 45,315 | 46,479 | - Amounts due from Zhong'an Group Co., Ltd. bear interest at an annual rate of **5%**, are unsecured, and have no fixed repayment terms[200](index=200&type=chunk) - Amounts due to fellow subsidiaries are interest-free, unsecured, and have no fixed repayment terms[206](index=206&type=chunk) - Transactions with Related Parties (RMB '000) | Type of Transaction | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Repayment to related companies (fellow subsidiaries) | 1,164 | 282,300 | | Loans provided to related companies (fellow subsidiaries) | 727,242 | 237,788 | | Property management fees | 4,576 | 5,649 | | Community value-added service fees | 80 | 499 | | Value-added service fees primarily provided to property developers | 892 | 3,669 | | **Total property service fees** | **5,548** | **9,817** | | Total remuneration for key management personnel | 2,950 | 3,222 | [19. COMMITMENTS](index=61&type=section&id=19.%20COMMITMENTS) This note discloses the Group's capital commitments for property development expenditures as of the end of the reporting period, with the total amount remaining relatively stable - Capital Commitments for Property Development Expenditures (RMB '000) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Contracted but not provided for: properties under development | 156,839 | 160,697 | [20. CONTINGENT LIABILITIES](index=62&type=section&id=20.%20CONTINGENT%20LIABILITIES) This note explains that the Group's guarantees for property buyers' mortgage loans constitute contingent liabilities, with the total amount decreasing; directors believe the net realizable value of the related properties is sufficient to cover potential default risks, thus no provision has been made - Overview of Contingent Liabilities (RMB '000) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Guarantees given to banks for mortgage loans granted to purchasers of the Group's properties | 286,410 | 359,727 | - The Group provided guarantees for mortgage loans granted by certain banks to purchasers of the Group's properties[227](index=227&type=chunk) - The directors believe that in the event of default, the net realizable value of the related properties would be sufficient to repay the outstanding mortgage loans and any accrued interest and penalties, thus no provision has been made for these guarantees[228](index=228&type=chunk) [21. FAIR VALUE AND FAIR VALUE HIERARCHY OF FINANCIAL INSTRUMENTS](index=63&type=section&id=21.%20FAIR%20VALUE%20AND%20FAIR%20VALUE%20HIERARCHY%20OF%20FINANCIAL%20INSTRUMENTS) This note elaborates on the fair value measurement of the Group's financial instruments and their classification within the fair value hierarchy; the fair value of fixed-rate interest-bearing borrowings is calculated by discounting future cash flows, while unlisted equity investments use market valuation methods, with no fair value measurement transfers between levels during the period - Fair Value of Interest-Bearing Bank and Other Borrowings (RMB '000) | Indicator | June 30, 2025 (Unaudited) | December 31, 2024 (Unaudited) | | :--- | :--- | :--- | | Carrying value | 1,043,919 | 390,680 | | Fair value | 1,061,253 | 412,601 | - Management has assessed that the fair values of current financial instruments such as cash and cash equivalents, current portion of restricted cash, trade receivables, and trade payables approximate their carrying values[232](index=232&type=chunk) - The fair value of unlisted equity investments is estimated using market valuation approaches, considering discounts for lack of marketability[236](index=236&type=chunk)[242](index=242&type=chunk) - The fair value hierarchy is categorized into three levels: Level 1 (quoted prices in active markets), Level 2 (significant observable inputs), and Level 3 (significant unobservable inputs)[246](index=246&type=chunk) - Fair Value Measurement Hierarchy of Financial Instruments (RMB '000) | Item | Level 1 | Level 2 | Level 3 | Total | | :--- | :--- | :--- | :--- | :--- | | June 30, 2025: Financial assets at fair value through profit or loss | 36 | – | – | 36 | | June 30, 2025: Equity investments designated at fair value through other comprehensive income | – | – | – | – | | December 31, 2024: Financial assets at fair value through profit or loss | 37 | – | – | 37 | | December 31, 2024: Equity investments designated at fair value through other comprehensive income | – | – | 340,354 | 340,354 | - During the reporting period, there were no transfers between Level 1 and Level 2 fair value measurements, and no transfers into or out of Level 3[253](index=253&type=chunk) [22. EVENT AFTER THE REPORTING PERIOD](index=68&type=section&id=22.%20EVENT%20AFTER%20THE%20REPORTING%20PERIOD) This note discloses a significant event after the reporting period, specifically the Company's repurchase and cancellation of shares in July 2025, arising from the Xin Nong Du acquisition transaction - In July 2025, the Company repurchased and cancelled **166,744,883 shares** arising from the Xin Nong Du acquisition transaction[251](index=251&type=chunk)[254](index=254&type=chunk) [23. APPROVAL OF THE INTERIM CONDENSED FINANCIAL STATEMENTS](index=68&type=section&id=23.%20APPROVAL%20OF%20THE%20INTERIM%20CONDENSED%20FINANCIAL%20STATEMENTS) This note confirms that the interim condensed financial statements were approved and authorized for issue by the Board of Directors on August 22, 2025 - The interim condensed financial statements were approved and authorized for issue by the Board of Directors on **August 22, 2025**[252](index=252&type=chunk)[255](index=255&type=chunk) [Other Information](index=68&type=section&id=Other%20Information) [DIRECTORS' AND CHIEF EXECUTIVE'S INTERESTS AND SHORT POSITIONS IN THE SHARES, UNDERLYING SHARES AND DEBENTURES OF THE COMPANY OR ANY ASSOCIATED CORPORATION](index=69&type=section&id=DIRECTORS'%20AND%20CHIEF%20EXECUTIVE'S%20INTERESTS%20AND%20SHORT%20POSITIONS%20IN%20THE%20SHARES,%20UNDERLYING%20SHARES%20AND%20DEBENTURES%20OF%20THE%20COMPANY%20OR%20ANY%20ASSOCIATED%20CORPORATION) This chapter discloses the interests and short positions of directors and the chief executive in the shares, underlying shares, and debentures of the Company or any associated corporation, with Mr. Shi Zhongan holding significant long positions in the Company and Zhong'an Group Co., Ltd. through controlled corporations - Mr. Shi Zhongan holds **1,358,859,594 shares** in the Company (representing approximately **67.58%** of the equity interest) through controlled corporations[258](index=258&type=chunk)[265](index=265&type=chunk) - Mr. Shi Zhongan holds **3,262,411,200 shares** in Zhong'an Group Co., Ltd. (representing approximately **57.89%** of the equity interest) through controlled corporations[258](index=258&type=chunk)[265](index=265&type=chunk) - Mr. Shi Zhongan wholly owns Quanhao Management Limited[258](index=258&type=chunk) [DIRECTORS' RIGHTS TO ACQUIRE SHARES OR DEBENTURES](index=70&type=section&id=DIRECTORS'%20RIGHTS%20TO%20ACQUIRE%20SHARES%20OR%20DEBENTURES) During the period, no rights to acquire benefits by way of acquisition of shares or debentures of the Company were granted to or exercised by any director or their respective spouses or minor children - At no time during the period were any rights granted to or exercised by any director or their respective spouses or minor children to acquire benefits by way of acquisition of shares or debentures of the Company[261](index=261&type=chunk)[264](index=264&type=chunk) [SUBSTANTIAL SHAREHOLDERS' INTERESTS AND SHORT POSITIONS IN SHARES AND UNDERLYING SHARES](index=71&type=section&id=SUBSTANTIAL%20SHAREHOLDERS'%20INTERESTS%20AND%20SHORT%20POSITIONS%20IN%20SHARES%20AND%20UNDERLYING%20SHARES) This chapter lists substantial shareholders, other than directors and the chief executive, with interests or short positions in the Company's shares and underlying shares, primarily Ideal World, Zhong'an, and Quanhao, all related to Mr. Shi Zhongan - Substantial Shareholders' Interests in Shares (Long Positions) | Name of Shareholder | Capacity/Nature of Interest | Number of Shares Held | Percentage of the Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Ideal World | Beneficial owner | 1,327,556,000 shares | 66.02% | | Zhong'an | Interest in controlled corporation | 1,327,556,000 shares | 66.02% | | Quanhao | Interest in controlled corporation | 1,327,556,000 shares | 66.02% | | Quanhao | Beneficial owner | 31,303,594 shares | 1.56% | - Ideal World is a wholly-owned subsidiary of Zhong'an, and approximately **57.89%** of Zhong'an's entire issued share capital is owned by Quanhao (wholly owned by Mr. Shi Zhongan)[267](index=267&type=chunk) [SHARE OPTION SCHEME](index=72&type=section&id=SHARE%20OPTION%20SCHEME) The Company's share option scheme expired on May 19, 2025, and as of that date, there were no outstanding share options under the scheme - The Company's share option scheme was adopted on **May 20, 2015**, and expired on **May 19, 2025**[270](index=270&type=chunk)[275](index=275&type=chunk) - As of **January 1, 2025**, and **May 19, 2025** (the expiry date of the scheme), there were no outstanding share options under the scheme[270](index=270&type=chunk)[275](index=275&type=chunk) [INTERIM DIVIDEND](index=72&type=section&id=INTERIM%20DIVIDEND) The Board of Directors does not recommend the payment of any interim dividend for the current period - The Board does not recommend the payment of any interim dividend for the current period (six months ended June 30, 2024: nil)[271](index=271&type=chunk)[276](index=276&type=chunk) [COMPLIANCE WITH THE CORPORATE GOVERNANCE CODE](index=72&type=section&id=COMPLIANCE%20WITH%20THE%20CORPORATE%20GOVERNANCE%20CODE) The Board has reviewed the Company's corporate governance practices and confirms compliance with the applicable provisions of the Corporate Governance Code during the period and up to the report date - The Board has adopted the applicable principles and code provisions of the Corporate Governance Code set out in Appendix C1 to the Listing Rules[272](index=272&type=chunk)[277](index=277&type=chunk) - The Board confirms that the Company has applied the principles and complied with the applicable code provisions of the Corporate Governance Code during the period and up to the date of this report[272](index=272&type=chunk)[277](index=277&type=chunk) [MODEL CODE FOR SECURITIES TRANSACTIONS BY DIRECTORS](index=72&type=section&id=MODEL%20CODE%20FOR%20SECURITIES%20TRANSACTIONS%20BY%20DIRECTORS) The Company has adopted a code of conduct for directors' securities transactions no less exacting than the Model Code in Appendix C3 of the Listing Rules, and all directors confirmed compliance during the period - The Company has adopted a code of conduct for directors' securities transactions on terms no less exacting than the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 to the Listing Rules[273](index=273&type=chunk)[278](index=278&type=chunk) - All directors have confirmed that they have complied with the required standards set out in the Model Code and the Company's code of conduct for securities transactions during the period[274](index=274&type=chunk)[278](index=278&type=chunk) [REVIEW OF THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENT](index=73&type=section&id=REVIEW%20OF%20THE%20UNAUDITED%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENT) The Company's Audit Committee, comprising three independent non-executive directors, has reviewed the unaudited interim condensed consolidated financial information for the period with management and the auditor, Ernst & Young - The Audit Committee is chaired by Mr. Lin Youyao, with other members being Mr. Xu Chengfa and Mr. Yuan Yuan, all of whom are independent non-executive directors[279](index=279&type=chunk)[283](index=283&type=chunk) - The interim condensed consolidated financial information for the period is unaudited but has been reviewed by the Audit Committee and the Company's auditor, Ernst & Young[279](index=279&type=chunk)[283](index=283&type=chunk) [PURCHASE, SALE OR REDEMPTION OF LISTED SECURITIES OF THE COMPANY](index=73&type=section&id=PURCHASE,%20SALE%20OR%20REDEMPTION%20OF%20LISTED%20SECURITIES%20OF%20THE%20COMPANY) During the period, neither the Company nor any of its subsidiaries repurchased, sold, or redeemed any of its shares - During the period, neither the Company nor any of its subsidiaries repurchased, sold, or redeemed any of its shares[280](index=280&type=chunk)[284](index=284&type=chunk) [MATERIAL CHANGES](index=73&type=section&id=MATERIAL%20CHANGES) Except as disclosed in this interim report, there have been no material changes concerning the Group's business development, prospects, or financial position, nor any significant events affecting the Group since the publication of the Company's 2024 annual report - Except as disclosed in this interim report, there have been no material changes concerning the Group's business development, prospects, or financial position, nor any significant events affecting the Group since the publication of the Company's 2024 annual report[281](index=281&type=chunk)[285](index=285&type=chunk) [EVENTS AFTER THE REPORTING PERIOD](index=73&type=section&id=EVENTS%20AFTER%20THE%20REPORTING%20PERIOD) This chapter discloses a significant event after the reporting period, specifically the Company's repurchase and cancellation of shares in July 2025 arising from the Xin Nong Du acquisition transaction, with no other material matters - In July 2025, the Company repurchased and cancelled **166,744,883 shares** arising from the Xin Nong Du acquisition transaction[282](index=282&type=chunk)[286](index=286&type=chunk) - Save as disclosed above, the Board is not aware of any other material events that have occurred after June 30, 2025, and up to the date of this report that require disclosure[282](index=282&type=chunk)[286](index=286&type=chunk)

Group 1 - The core point of the article is that China New City (01321.HK) has entered into a service agreement with EXIO Group Limited to provide tokenization services starting from September 15, 2025 [1] - The services to be provided by EXIO include legal document coordination, smart contract development, smart contract auditing, wallet solutions, access to tokens on the EXIO platform, coordination of investor KYC procedures, and initial distribution and secondary trading of virtual assets [1] - The service agreement is initially set for a period of one year, with the possibility of early termination as per the terms of the agreement [1]

Core Viewpoint - China New City (01321) has entered into a service agreement with EXIO Group Limited to provide tokenization services, indicating a strategic move towards digital assets [1] Group 1: Agreement Details - The service agreement includes legal document coordination, smart contract development, smart contract auditing, wallet solutions, token access on the EXIO platform, coordination of investor KYC procedures, and initial distribution and secondary trading of virtual assets [1] Group 2: Strategic Intent - The company aims to leverage Hong Kong's status as an international financial center and its regulatory environment to deepen collaboration with leaders in the digital asset industry [1] - The strategic research and layout of digital assets are intended to promote the revaluation of existing asset values [1] Group 3: EXIO Group Information - EXIO is a licensed virtual asset trading platform in Hong Kong, backed by Sina's Huasheng Group, and received its operating license from the Hong Kong Securities and Futures Commission in December 2024 [1]

自願性公告 與EX.IO合作推出商業地產RWA項目 本公告乃中國新城市集團有限公司（「本公司」，連同其附屬公司統稱「本集團」）自願作出。 本公司董事會（「董事會」）欣然宣佈，於2025年9月15日，本公司與EXIO Group Limited（「EXIO」）訂 立服務協議（「服務協議」），據此EXIO同意向本公司提供代幣化服務：法律文件協調、智能合約開 發、智能合約審計、錢包解決方案、代幣在EXIO平台的准入、協調完成投資者認識你的客戶程序、 虛擬資產的首次分銷及二級交易。 服務協議自2025年9月15日起生效，初步為期一年，除非按協議條款提前終止。服務協議期限屆滿 前至少60天如任何一方未有發出書面不續約通知，則自動續約一年。任何一方可發出不少於30天 的書面通知終止服務協議。 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或 完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該 等內容而引致的任何損失承擔任何責任。 China New City Group Limited 中國新城市集團有限公 司 （於開曼群島註冊成立之有限公司） （股份 ...

FF301 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 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 公司名稱: 中國新城市集團有限公司 (於開曼群島註冊成立之有限公司) 呈交日期: 2025年9月3日 I. 法定/註冊股本變動 FF301 II. 已發行股份及/或庫存股份變動 | 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) | 01321 | 說明 | | | | | | | | | 已發行股份（不包括庫存股份）數目 | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | 1,844,023,117 | | 0 | | 1,844,023,117 | | 增加 / 減少 (-) | | | 0 | | 0 | | | | 本月底結存 | | | 1,844,023,117 | | 0 | | 1,844,023,117 | 第 ...

Group 1 - The company reported a revenue of approximately 366 million yuan for the first half of 2025, representing a year-on-year decrease of 87.5% [1] - Gross profit was 77.089 million yuan, down 95.1% compared to the previous year [1] - The company experienced a loss attributable to equity holders of 35.522 million yuan, a shift from profit to loss year-on-year, with a loss per share of 1.77 cents [1] Group 2 - The significant decrease in revenue and gross profit is primarily attributed to a substantial decline in property sales business [1]

Core Viewpoint - China New City (01321) reported a significant decline in its mid-year performance for 2025, with a sharp drop in revenue and gross profit, primarily due to a substantial decrease in property sales [1] Financial Performance - Revenue for the period was approximately 366 million yuan, representing a year-on-year decrease of 87.5% [1] - Gross profit stood at 77.1 million yuan, down 95.1% compared to the previous year [1] - The company reported a loss attributable to equity holders of 35.5 million yuan, marking a shift from profit to loss year-on-year [1] - Earnings per share reflected a loss of 1.77 cents [1] Business Operations - The decline in revenue and gross profit was primarily attributed to a significant reduction in the property sales business [1]

Core Viewpoint - China New City (01321.HK) reported a significant decline in financial performance for the six months ending June 30, 2025, with a revenue drop of 87.5% year-on-year [1] Financial Performance - Revenue for the period was RMB 366 million, a decrease of 87.5% compared to the previous year [1] - Gross profit amounted to RMB 77.089 million, reflecting a 95.1% year-on-year decline [1] - The loss attributable to the parent company was RMB 35.522 million, contrasting with a profit of RMB 378 million in the same period last year [1] - Basic loss per share was RMB 0.0177 [1]

[Financial Summary](index=1&type=section&id=Financial%20Summary) The Group experienced a significant decline in revenue and gross profit for the six months ended June 30, 2025, resulting in a net loss and a decrease in total assets and net assets Financial Summary for the Six Months Ended June 30, 2025 | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Revenue | 366,307 | 2,921,774 | -87.5% | | Gross Profit | 77,089 | 1,579,596 | -95.1% | | (Loss)/Profit for the Period | (39,448) | 347,502 | -111.4% | | (Loss)/Profit Attributable to Owners of the Parent | (35,522) | 377,789 | -109.4% | | (Loss)/Earnings Per Share Attributable to Ordinary Equity Holders of the Parent - Basic and Diluted | RMB (1.77) cents | RMB 18.79 cents | -109.4% | | **As of June 30, 2025** | **RMB thousand** | **As of December 31, 2024** | **Change** | | Total Assets | 13,282,430 | 13,385,727 | -0.8% | | Net Assets | 5,262,481 | 5,342,134 | -1.5% | | Net Asset Value Per Share | RMB 2.62 | RMB 2.66 | -1.5% | [Interim Condensed Consolidated Financial Statements](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) This section presents the Group's interim condensed consolidated financial statements, including the statement of profit or loss, comprehensive income, and financial position, reflecting a shift from profit to loss and changes in asset and liability structures [Interim Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the Group turned from profit to loss, recording a net loss of RMB 39,448 thousand, compared to a profit of RMB 347,502 thousand in the prior period, primarily due to an 87.5% revenue decline and 95.1% gross profit reduction from decreased property sales Interim Condensed Consolidated Statement of Profit or Loss (For the Six Months Ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 366,307 | 2,921,774 | | Cost of Sales | (289,218) | (1,342,178) | | Gross Profit | 77,089 | 1,579,596 | | Other Income and Gains | 174,232 | 25,876 | | Selling and Distribution Expenses | (53,587) | (66,588) | | Administrative Expenses | (45,165) | (67,991) | | Other Expenses | (79,080) | (5,833) | | Finance Costs | (97,642) | (47,317) | | Fair Value Change of Investment Properties | (8,600) | (535,900) | | (Loss)/Profit Before Tax | (32,753) | 877,358 | | Income Tax Expense | (6,695) | (529,856) | | (Loss)/Profit for the Period | (39,448) | 347,502 | | (Loss)/Profit Attributable to Owners of the Parent | (35,522) | 377,789 | [Interim Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) Total comprehensive loss for the period was RMB 75,937 thousand, a significant deterioration from the prior period's total comprehensive income of RMB 362,518 thousand, mainly due to the period's loss and negative impacts from other comprehensive income, including exchange differences and fair value changes in equity investments Interim Condensed Consolidated Statement of Comprehensive Income (For the Six Months Ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | (Loss)/Profit for the Period | (39,448) | 347,502 | | Exchange Differences Arising from Translation of Financial Statements of Overseas Subsidiaries | (7,613) | 10,812 | | Exchange Differences Arising from Translation of Overseas Operations | (12,467) | 5,690 | | Equity Investments Designated at Fair Value Through Other Comprehensive Income: Fair Value Changes | (21,879) | (1,982) | | Income Tax Impact | 5,470 | 496 | | Other Comprehensive Income for the Period, Net of Tax | (36,489) | 15,016 | | Total Comprehensive (Loss)/Income for the Period | (75,937) | 362,518 | | Attributable to Owners of the Parent | (72,011) | 392,805 | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets slightly decreased by 0.8% to RMB 13,282,430 thousand, and net assets decreased by 1.5% to RMB 5,262,481 thousand, with a notable increase in net current assets due to reduced current assets and liabilities Interim Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property and Equipment | 2,128,801 | 2,183,115 | | Investment Properties | 4,328,300 | 4,336,900 | | Properties Under Development | 447,663 | 439,451 | | Investments in Associates | 681,873 | – | | Total Non-current Assets | 7,875,606 | 7,736,991 | | **Current Assets** | | | | Completed Properties Held for Sale | 3,910,663 | 4,085,699 | | Trade Receivables | 75,580 | 61,081 | | Amounts Due from Related Companies | 965,030 | 237,788 | | Cash and Cash Equivalents | 208,647 | 838,999 | | Total Current Assets | 5,406,824 | 5,648,736 | | **Current Liabilities** | | | | Trade Payables | 1,077,301 | 1,543,308 | | Contract Liabilities | 286,895 | 923,714 | | Interest-bearing Bank and Other Borrowings (Current) | 327,079 | 1,072,160 | | Total Current Liabilities | 3,229,136 | 5,055,477 | | Net Current Assets | 2,177,688 | 593,259 | | **Non-current Liabilities** | | | | Interest-bearing Bank and Other Borrowings (Non-current) | 4,127,840 | 2,327,020 | | Total Non-current Liabilities | 4,790,813 | 2,988,116 | | Net Assets | 5,262,481 | 5,342,134 | | Total Equity | 5,262,481 | 5,342,134 | [Notes to the Interim Condensed Consolidated Financial Information](index=6&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) This section provides detailed notes to the interim condensed consolidated financial information, covering company details, accounting policies, segment information, and specific financial line items [1. Company Information](index=6&type=section&id=1.%20Company%20Information) China New City Group Limited, incorporated in the Cayman Islands in 2013, operates as an investment holding company primarily engaged in commercial property development, leasing, and hotel operations, with Quanhao Management Limited as its ultimate controlling entity - The Company was incorporated in the Cayman Islands on **July 2, 2013**, as an investment holding company[9](index=9&type=chunk) - The Group is principally engaged in **commercial property development, leasing, and hotel operations**[10](index=10&type=chunk) - The ultimate controlling company of the Company is **Quanhao Management Limited**[11](index=11&type=chunk) [2. Basis of Preparation and Accounting Policies](index=6&type=section&id=2.%20Basis%20of%20Preparation%20and%20Accounting%20Policies) The interim condensed consolidated financial information is prepared in accordance with IAS 34 and should be read with the 2024 annual consolidated financial statements, with the first-time adoption of revised IAS 21 having no significant financial impact [2.1 Basis of Preparation](index=6&type=section&id=2.1%20Basis%20of%20Preparation) The interim condensed consolidated financial information is prepared in accordance with IAS 34 and presented in RMB, rounded to the nearest thousand - The interim condensed consolidated financial information is prepared in accordance with **International Accounting Standard 34 "Interim Financial Reporting"** issued by the International Accounting Standards Board[12](index=12&type=chunk) - These financial statements are presented in **RMB** and adjusted to the nearest thousand[12](index=12&type=chunk) [2.2 Changes in Accounting Policies and Disclosures](index=6&type=section&id=2.2%20Changes%20in%20Accounting%20Policies%20and%20Disclosures) The Group adopted revised IAS 21 "Lack of Exchangeability" for the first time during the period, which had no significant financial impact on the financial statements - The Group adopted the revised **International Accounting Standard 21 "Lack of Exchangeability"** for the first time during the period[14](index=14&type=chunk) - The new and revised standards had **no significant financial impact** on these financial statements[14](index=14&type=chunk) [3. Operating Segment Information](index=7&type=section&id=3.%20Operating%20Segment%20Information) The Group operates four reportable segments: commercial property development, property leasing, hotel operations, and other services; in H1 2025, a significant decline in commercial property development revenue led to a sharp drop in overall revenue and segment results, while property leasing revenue increased - The Group has four reportable operating segments: **commercial property development, property leasing, hotel operations, and "other" segments**[17](index=17&type=chunk) [Segment Revenue and Results](index=8&type=section&id=Segment%20Revenue%20and%20Results) Segment revenue and results for the six months ended June 30, showing a substantial decrease in commercial property development revenue and a shift to loss for the segment | Segment | 2025 Revenue (RMB thousand) | 2024 Revenue (RMB thousand) | Change (%) | 2025 Segment Results (RMB thousand) | 2024 Segment Results (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | | Commercial Property Development | 175,269 | 2,723,530 | -93.6% | (19,071) | 1,403,421 | | Property Leasing | 64,896 | 48,646 | +33.4% | 12,049 | (426,319) | | Hotel Operations | 99,181 | 112,651 | -12.0% | (20,646) | (30,498) | | Other Services | 26,961 | 36,947 | -27.1% | 76,145 | (26,026) | | **Total** | **366,307** | **2,921,774** | **-87.5%** | **48,477** | **920,578** | [Segment Assets and Liabilities](index=10&type=section&id=Segment%20Assets%20and%20Liabilities) Segment assets and liabilities as of June 30, 2025, indicating a slight decrease in total assets and liabilities, with notable changes in commercial property development segment assets and liabilities | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | **Total Assets** | **13,282,430** | **13,385,727** | **-0.8%** | | Commercial Property Development Segment Assets | 6,015,169 | 6,201,139 | -3.0% | | Property Leasing Segment Assets | 4,644,508 | 4,673,438 | -0.6% | | Hotel Operations Segment Assets | 1,777,294 | 1,913,326 | -7.1% | | Other Services Segment Assets | 1,642,575 | 765,905 | +114.5% | | **Total Liabilities** | **8,019,949** | **8,043,593** | **-0.3%** | | Commercial Property Development Segment Liabilities | 1,471,772 | 2,479,054 | -40.6% | | Property Leasing Segment Liabilities | 376,571 | 371,202 | +1.4% | | Hotel Operations Segment Liabilities | 643,226 | 679,232 | -5.3% | | Other Services Segment Liabilities | 447,718 | 412,300 | +8.6% | [Geographical Information](index=11&type=section&id=Geographical%20Information) Geographical breakdown of revenue from external customers and non-current assets, primarily concentrated in Mainland China | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue from External Customers (Mainland China) | 366,307 | 2,921,774 | | Non-current Assets (Mainland China) | 7,752,031 | 7,299,787 | | Non-current Assets (Other) | 64,245 | 59,891 | [Information about Major Customers](index=11&type=section&id=Information%20about%20Major%20Customers) No single customer or group of customers under common control accounted for 10% or more of the Group's revenue for the six months ended June 30, 2025 and 2024 - No single customer or group of customers under common control accounted for **10% or more of the Group's revenue** for the six months ended June 30, 2025 and 2024[23](index=23&type=chunk) [4. Revenue, Other Income and Gains](index=12&type=section&id=4.%20Revenue%2C%20Other%20Income%20and%20Gains) Total revenue for the period was RMB 366,307 thousand, an 87.5% year-on-year decrease primarily due to a sharp decline in customer contract revenue, especially property sales, while other income and gains surged by 573.3% mainly from remeasurement of associate investments [Analysis of Revenue](index=12&type=section&id=Analysis%20of%20Revenue) Analysis of revenue sources for the six months ended June 30, showing a significant decrease in customer contract revenue but an increase in gross rental income from investment properties | Revenue Source | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue from Contracts with Customers | 301,411 | 2,873,128 | -89.5% | | Gross Rental Income from Operating Leases of Investment Properties | 64,896 | 48,646 | +33.4% | | **Total** | **366,307** | **2,921,774** | **-87.5%** | [Disaggregated Revenue Information from Contracts with Customers](index=12&type=section&id=Disaggregated%20Revenue%20Information%20from%20Contracts%20with%20Customers) Disaggregated revenue from contracts with customers for the six months ended June 30, highlighting a substantial decrease in property sales | Type of Goods or Services | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Property Sales | 175,269 | 2,723,530 | -93.6% | | Hotel Operations Revenue | 99,181 | 112,651 | -12.0% | | Other Services | 26,961 | 36,947 | -27.1% | | **Total** | **301,411** | **2,873,128** | **-89.5%** | - The majority of customer contract revenue, including **property sales and hotel operations revenue**, is recognized at a point in time[25](index=25&type=chunk)[26](index=26&type=chunk) [Details of Other Income and Gains](index=13&type=section&id=Details%20of%20Other%20Income%20and%20Gains) Details of other income and gains for the six months ended June 30, showing a significant increase primarily due to a gain from remeasurement of an investment in an associate | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Subsidy Income | 570 | 80 | +612.5% | | Interest Income | 16,412 | 4,097 | +300.6% | | Other Income | 3,852 | 4,137 | -6.9% | | Gain from Remeasurement of an Investment in an Associate | 153,398 | – | N/A | | Gain on Disposal of Items of Property and Equipment | – | 576 | -100% | | Compensation for Lease Termination | – | 2,876 | -100% | | Gain on Disposal of Subsidiaries | – | 2,863 | -100% | | Gain on Disposal of Items of Right-of-use Assets | – | 5,918 | -100% | | Exchange Gain | – | 5,329 | -100% | | **Total** | **174,232** | **25,876** | **+573.3%** | - The significant increase in other income and gains is primarily due to a **gain of approximately RMB 153,398 thousand from the remeasurement of an investment in an associate**[26](index=26&type=chunk)[27](index=27&type=chunk) - This gain resulted from the fair value of Xin Nong Du's identifiable net assets attributable to the buyer exceeding the investment cost after acquiring a **42.50% equity interest** in Xin Nong Du[27](index=27&type=chunk) [5. Profit/Loss Before Tax](index=14&type=section&id=5.%20Profit%2FLoss%20Before%20Tax) The Group's loss before tax was RMB 32,753 thousand, a significant deterioration from the prior period's profit of RMB 877,358 thousand, primarily due to a sharp decrease in property sales costs and reduced fair value losses on investment properties, offset by increased impairment provisions for financial assets and property and equipment Profit/Loss Before Tax Components (For the Six Months Ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of Properties Sold | 175,036 | 1,217,435 | | Depreciation of Property and Equipment | 57,275 | 62,147 | | Depreciation of Right-of-use Assets | 3,088 | 6,182 | | Staff Costs (Including Directors' and Key Management's Emoluments) | 42,240 | 50,995 | | Fair Value Change of Investment Properties | 8,600 | 535,900 | | Gain from Remeasurement of an Investment in an Associate | (153,398) | – | | Impairment Provision for Financial Assets | 48,367 | – | | Impairment Provision for Property and Equipment | 24,186 | – | | Impairment Provision for Right-of-use Assets | 337 | – | | Impairment of Investment in a Joint Venture | – | 5,626 | [6. Income Tax Expense](index=15&type=section&id=6.%20Income%20Tax%20Expense) Income tax expense for the period was RMB 6,695 thousand, a substantial decrease from RMB 529,856 thousand in the prior period, mainly due to reduced PRC income tax and land appreciation tax, and the impact of deferred tax - Hong Kong-incorporated subsidiaries were **not subject to income tax** during the period[30](index=30&type=chunk) - PRC income tax is provided at a rate of **25%**, and land appreciation tax is levied at progressive rates from **30% to 60%**[30](index=30&type=chunk) Income Tax Expense (For the Six Months Ended June 30) | Tax Category | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | PRC Income Tax for the Period | 14,306 | 295,642 | -95.2% | | PRC Land Appreciation Tax for the Period | 6,006 | 428,946 | -98.6% | | Deferred Tax | (13,617) | (194,732) | -93.0% | | **Total Tax Expense for the Period** | **6,695** | **529,856** | **-98.7%** | [7. Loss/Earnings Per Share Attributable to Ordinary Equity Holders of the Parent](index=15&type=section&id=7.%20Loss%2FEarnings%20Per%20Share%20Attributable%20to%20Ordinary%20Equity%20Holders%20of%20the%20Parent) For the six months ended June 30, 2025, basic loss per share was RMB (1.77) cents, compared to earnings per share of RMB 18.79 cents in the prior period, primarily due to the loss attributable to owners of the parent during the period Loss/Earnings Per Share (For the Six Months Ended June 30) | Indicator | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | (Loss)/Profit Attributable to Ordinary Equity Holders of the Parent | (35,522) thousand RMB | 377,789 thousand RMB | -109.4% | | Basic and Diluted (Loss)/Earnings Per Share | RMB (1.77) cents | RMB 18.79 cents | -109.4% | | Weighted Average Number of Ordinary Shares Outstanding During the Period | 2,010,768,000 shares | 2,010,768,000 shares | 0% | - The Group had **no potentially dilutive ordinary shares** outstanding for the period ended June 30, 2025[33](index=33&type=chunk) [8. Dividends](index=16&type=section&id=8.%20Dividends) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an **interim dividend** for the six months ended June 30, 2025[34](index=34&type=chunk) [9. Trade Receivables](index=16&type=section&id=9.%20Trade%20Receivables) As of June 30, 2025, total trade receivables increased to RMB 75,580 thousand from RMB 61,081 thousand on December 31, 2024, with the largest proportion due within six months Ageing Analysis of Trade Receivables (As of Reporting Period End) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Within Six Months | 65,119 | 55,063 | +18.3% | | Over Six Months but Within One Year | 7,180 | 4,802 | +49.5% | | Over One Year but Within Two Years | 3,281 | 1,216 | +169.8% | | **Total** | **75,580** | **61,081** | **+23.7%** | [10. Trade Payables](index=16&type=section&id=10.%20Trade%20Payables) As of June 30, 2025, total trade payables significantly decreased to RMB 1,077,301 thousand from RMB 1,543,308 thousand on December 31, 2024, primarily due to a substantial reduction in amounts due between six months and one year Ageing Analysis of Trade Payables (As of Reporting Period End) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Within Six Months | 733,802 | 701,370 | +4.6% | | Over Six Months but Within One Year | 330,547 | 828,857 | -60.1% | | Over One Year but Within Two Years | 5,946 | 3,557 | +67.2% | | Over Two Years but Within Three Years | 7,006 | 9,524 | -26.4% | | **Total** | **1,077,301** | **1,543,308** | **-30.2%** | - The balances are **unsecured and interest-free**, generally payable according to construction progress[36](index=36&type=chunk) [11. Commitments](index=17&type=section&id=11.%20Commitments) As of June 30, 2025, the Group's contracted but unprovided commitments for property development expenditures were RMB 156,839 thousand, a slight decrease from December 31, 2024 Property Development Expenditure Commitments (As of Reporting Period End) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Properties Under Development | 156,839 | 160,697 | -2.4% | [12. Contingent Liabilities](index=17&type=section&id=12.%20Contingent%20Liabilities) As of June 30, 2025, the Group's bank guarantees for property buyers' mortgage loans decreased to RMB 286,410 thousand from December 31, 2024, with directors believing the net realizable value of the properties is sufficient for repayment, thus no provision was made - The Group provides **guarantees for mortgage loans** granted by certain banks to buyers of the Group's properties[38](index=38&type=chunk) - Directors believe that the **net realizable value of the relevant properties is sufficient** to cover the outstanding mortgage loans and any accrued interest and penalties in case of default, thus no provision has been made for these guarantees[38](index=38&type=chunk) Contingent Liabilities (As of Reporting Period End) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Guarantees to Banks for Mortgage Loans Granted to Buyers of the Group's Properties | 286,410 | 359,727 | -20.4% | [Management Discussion and Analysis](index=18&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's discussion and analysis of the Group's business performance, financial position, and future outlook, highlighting key operational and financial trends [Overview](index=18&type=section&id=Overview) The Group is a large enterprise integrating commercial development and operations, hotel management, film, education, and cultural tourism, recognized as a leading commercial real estate integrated operator in the Yangtze River Delta region with multiple industry accolades - The Group is a large enterprise integrating **commercial development and operations, hotel management, film, education, and cultural tourism**[40](index=40&type=chunk) - The Group has developed into a leading **commercial real estate integrated operator in the Yangtze River Delta region**, having been recognized as one of the "Top 10 Commercial Real Estate Operators in China"[40](index=40&type=chunk) [Business Review](index=18&type=section&id=Business%20Review) The Group's core business segments include industrial property development, commercial operations, hotel management, and industrial investment, with diversified new industry layouts; consolidated revenue for the period was approximately RMB 366 million, down 87.5% year-on-year, and gross profit was approximately RMB 77 million, down 95.1%, primarily due to a significant reduction in property sales - The Group's core business segments are **industrial property development, commercial operations, hotel management, and industrial investment**, while also diversifying into industrial services, rural cultural tourism, smart agricultural wholesale, film and education, and digital health[41](index=41&type=chunk) Key Financial Data for Business Review (For the Current Period) | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Consolidated Revenue | 366 | 2,922 | -87.5% | | Gross Profit | 77 | 1,580 | -95.1% | | Gross Profit Margin | 21.0% | 54.1% | -33.1 percentage points | - As of June 30, 2025, the Group's **total equity was approximately RMB 5,262 million**, and **cash book value was approximately RMB 226 million**[41](index=41&type=chunk) [Policies and Outlook](index=18&type=section&id=Policies%20and%20Outlook) China's 2025 real estate policy continues its 'stabilize and recover' approach, fully implementing 'four cancellations, four reductions, and two additions' to support the market and accelerate inventory reduction; the Group will maintain prudent operations, advance urban renewal, and explore new models for the existing market - China's 2025 real estate policy continues its core principle of **"stabilizing decline and achieving recovery"**, fully implementing a policy package of "four cancellations, four reductions, and two additions"[42](index=42&type=chunk) - Policies include **cancelling purchase restrictions, resale restrictions, price caps, and ordinary housing standards**; **reducing down payment ratios, mortgage interest rates, and transaction taxes and fees**; and **adding urban village renovation and "white list" financing for property developers**[42](index=42&type=chunk) - The Group will continue to adhere to a **prudent operating philosophy**, maintain financial stability, effectively integrate Group resources, and intensify business innovation efforts, promoting urban renewal projects and exploring new development models[43](index=43&type=chunk) [Progress of Major Projects](index=19&type=section&id=Progress%20of%20Major%20Projects) The Group's International Office Center (IOC) Plot A2 and Longying Huijinzuo (Binhe Yin) projects in Hangzhou achieved expected sales, with Longying Huijinzuo completed in 2024 [International Office Center (IOC)](index=19&type=section&id=International%20Office%20Center%20%28IOC%29) The International Office Center (IOC) Plot A3 is largely sold out, and Plot A2 sales met expectations during the period - International Office Center (IOC) Plot A3 was completed in **2015** and is largely sold out, except for a small number of units and parking spaces[44](index=44&type=chunk) - Plot A2 commenced construction in **2019**, with sales meeting expectations during the period[44](index=44&type=chunk) [Longying Huijinzuo (Binhe Yin)](index=19&type=section&id=Longying%20Huijinzuo%20%28Binhe%20Yin%29) The Longying Huijinzuo (Binhe Yin) project was completed in 2024, with sales meeting expectations during the current period - The Longying Huijinzuo (Binhe Yin) project was completed in **2024**[45](index=45&type=chunk) - Sales for this project met expectations during the period[45](index=45&type=chunk) [Sales Review](index=20&type=section&id=Sales%20Review) Confirmed sales amount and area significantly decreased during the period, with contracted sales amount and area also declining year-on-year, reflecting a weak property sales market [Confirmed Sales](index=20&type=section&id=Confirmed%20Sales) Confirmed sales amount and total gross floor area delivered for the six months ended June 30, showing a substantial year-on-year decrease Confirmed Sales Data (For the Six Months Ended June 30) | Indicator | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Confirmed Sales Amount | RMB 175,269 thousand | RMB 2,723,530 thousand | -93.6% | | Total Gross Floor Area of Properties Delivered | 10,415 square meters | 73,493 square meters | -85.8% | Confirmed Sales Project Details (H1 2025) | Project | Region | Confirmed Amount (RMB million) | Area (square meters) | | :--- | :--- | :--- | :--- | | Longying Huijinzuo (Binhe Yin) | Hangzhou | 133.8 | 6,212 | | Mingcaicheng | Hangzhou | 28.8 | 2,225 | | Zhong'an Times Square Phase II | Yuyao | 6.9 | 1,200 | | Cixi New City | Cixi | 5.4 | 778 | | Other Remaining Units | Hangzhou | 0.4 | – | | **Total** | | **175.3** | **10,415** | [Contracted Sales](index=20&type=section&id=Contracted%20Sales) Contracted sales area and revenue for the six months ended June 30, both showing a significant year-on-year decrease Contracted Sales Data (For the Six Months Ended June 30) | Indicator | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Contracted Sales Area | 14,981 square meters | 29,997 square meters | -50.0% | | Contracted Sales Revenue | RMB 326,848 thousand | RMB 663,350 thousand | -50.8% | Major Project Contracted Sales Details (H1 2025) | Project | Region | Contracted Amount (RMB million) | Area (square meters) | | :--- | :--- | :--- | :--- | | International Office Center (IOC) A2 | Hangzhou | 195.9 | 4,845 | | Xin Nong Du | Hangzhou | 74.5 | 7,489 | | Longying Huijinzuo (Binhe Yin) | Hangzhou | 48.2 | 1,943 | | Mingcaicheng | Hangzhou | 5.0 | 312 | | Cixi New City | Cixi | 2.8 | 392 | | Zhong'an Times Square Phase II | Yuyao | 0.5 | – | | Chaoyang Ginza | Hangzhou | 0.1 | – | | **Total** | | **326.8** | **14,981** | [Hotel Operations](index=21&type=section&id=Hotel%20Operations) Hotel management revenue for the period was approximately RMB 99,181 thousand, a 12.0% year-on-year decrease, primarily due to a weak market leading to a decline in hotel occupancy rates to approximately 60% - The Group manages **four self-owned hotels**[49](index=49&type=chunk) Hotel Operations Data (For the Six Months Ended June 30) | Indicator | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Hotel Management Revenue | RMB 99,181 thousand | RMB 112,651 thousand | -12.0% | | Hotel Occupancy Rate | Approximately 60% | Approximately 62% | -2 percentage points | - The decrease in revenue is primarily due to a **weak market and a decline in hotel occupancy rates**[49](index=49&type=chunk) [Commercial Operations](index=21&type=section&id=Commercial%20Operations) Total commercial operations revenue for the period was approximately RMB 64,896 thousand, a 33.4% year-on-year increase, primarily benefiting from new community commercial projects, increased occupancy at Yuyao Zhong'an Plaza, and higher per-square-meter rent at Yiwu Zhong'an Plaza, despite a slight decrease in average occupancy rate - The Group's commercial operations revenue primarily derives from **rental income from office buildings, shopping malls, and community commercial complexes**[50](index=50&type=chunk) Commercial Operations Data (For the Six Months Ended June 30) | Indicator | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total Commercial Operations Revenue | RMB 64,896 thousand | RMB 48,646 thousand | +33.4% | | Average Occupancy Rate of Leased Properties | Approximately 80% | Approximately 84% | -4 percentage points | - The increase in total revenue primarily benefited from **revenue generation from new community commercial projects, increased occupancy at Yuyao Zhong'an Plaza, and higher per-square-meter rent at Yiwu Zhong'an Plaza**[50](index=50&type=chunk) [Land Bank](index=21&type=section&id=Land%20Bank) As of June 30, 2025, the Group's total land bank for development and/or sale was approximately 3,673,020 square meters, a slight decrease from December 31, 2024 Total Land Bank Gross Floor Area (As of Reporting Period End) | Indicator | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total Land Bank Gross Floor Area | 3,673,020 square meters | 3,690,924 square meters | -0.5% | [Financial Performance Analysis](index=21&type=section&id=Financial%20Performance%20Analysis) The Group's financial performance significantly deteriorated during the period, with revenue and gross profit sharply declining due to a substantial drop in property sales, leading to a shift from profit to loss; despite controlled selling and administrative expenses, other expenses and finance costs rose significantly due to increased impairment provisions and interest expenses [Revenue](index=21&type=section&id=Revenue) Consolidated revenue for the six months ended June 30, showing a substantial year-on-year decrease Consolidated Revenue (For the Six Months Ended June 30) | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Consolidated Revenue | 366,307 | 2,921,774 | -87.5% | - The decrease in revenue is primarily due to a **reduction in property sales business** of approximately RMB 2,548,261 thousand compared to the prior period in 2024[52](index=52&type=chunk) [Gross Profit](index=21&type=section&id=Gross%20Profit) Consolidated gross profit and gross profit margin for the six months ended June 30, both showing a significant year-on-year decrease Consolidated Gross Profit and Gross Profit Margin (For the Six Months Ended June 30) | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Consolidated Gross Profit | 77,089 | 1,579,596 | -95.1% | | Consolidated Gross Profit Margin | 21.0% | 54.1% | -33.1 percentage points | - The decrease in consolidated gross profit is primarily due to a **significant reduction in gross profit from property sales revenue** during the period[53](index=53&type=chunk) [Other Income and Gains](index=22&type=section&id=Other%20Income%20and%20Gains) Other income and gains for the six months ended June 30, showing a substantial year-on-year increase Other Income and Gains (For the Six Months Ended June 30) | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Other Income and Gains | 174,232 | 25,876 | +573.3% | - The increase is primarily due to a **gain of approximately RMB 153,398 thousand** from the fair net value of an associate's identifiable net assets exceeding the investment cost attributable to the Group[54](index=54&type=chunk) [Selling and Distribution Expenses](index=22&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses for the six months ended June 30, showing a year-on-year decrease Selling and Distribution Expenses (For the Six Months Ended June 30) | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 53,587 | 66,588 | -19.5% | - The decrease is primarily due to the Group's **effective implementation of cost management strategies**[55](index=55&type=chunk) [Administrative Expenses](index=22&type=section&id=Administrative%20Expenses) Administrative expenses for the six months ended June 30, showing a year-on-year decrease Administrative Expenses (For the Six Months Ended June 30) | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 45,165 | 67,991 | -33.6% | - The decrease is primarily due to the Group's **effective implementation of cost management strategies**[56](index=56&type=chunk) [Other Expenses](index=22&type=section&id=Other%20Expenses) Other expenses for the six months ended June 30, showing a significant year-on-year increase Other Expenses (For the Six Months Ended June 30) | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Other Expenses | 79,080 | 5,833 | +1,255.7% | - The increase is primarily due to **higher impairment provisions for financial assets, property, and equipment** during the period compared to the prior period in 2024[57](index=57&type=chunk) [Finance Costs](index=22&type=section&id=Finance%20Costs) Finance costs for the six months ended June 30, showing a significant year-on-year increase Finance Costs (For the Six Months Ended June 30) | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Finance Costs | 97,642 | 47,317 | +106.4% | - The increase is primarily due to a **decrease in capitalized interest expenses and an increase in loan balances** during the period[58](index=58&type=chunk) [Loss for the Period](index=22&type=section&id=Loss%20for%20the%20Period) Loss for the period for the six months ended June 30, showing a significant shift from profit to loss (Loss)/Profit for the Period (For the Six Months Ended June 30) | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | (Loss)/Profit for the Period | (39,448) | 347,502 | -111.4% | - The loss for the period is primarily due to a **significant decrease in revenue generated from the Group's commercial property projects**[59](index=59&type=chunk) [Capital Expenditure](index=22&type=section&id=Capital%20Expenditure) During the period, the Group incurred approximately RMB 31,016 thousand in property and equipment expenditure, an increase compared to the prior period Property and Equipment Capital Expenditure (For the Six Months Ended June 30) | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Property and Equipment Expenditure | 31,016 | 24,835 | +24.9% | [Significant Investments](index=23&type=section&id=Significant%20Investments) The Group held no significant investments during the period - The Group held **no significant investments** during the period[61](index=61&type=chunk) [Capital Structure](index=23&type=section&id=Capital%20Structure) As of June 30, 2025, the Group's total cash and cash equivalents decreased, while the current ratio rose to 1.67; the gearing ratio increased to 52%, reflecting a higher proportion of net debt relative to capital Key Capital Structure Indicators (As of Reporting Period End) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Cash and Cash Equivalents and Restricted Cash | 225,937 | 886,087 | -74.5% | | Current Ratio | 1.67 | 1.12 | +49.1% | | Gearing Ratio | 52% | 46% | +6 percentage points | - As of June 30, 2025, bank and other borrowings repayable within one year amounted to approximately **RMB 327,079 thousand**, and those repayable after one year amounted to approximately **RMB 4,127,840 thousand**[62](index=62&type=chunk) [Pledge of Assets](index=23&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group's bank and other borrowings of approximately RMB 4,454,919 thousand were secured by pledged assets including property and equipment, investment properties, completed properties held for sale, and investments in associates, with the total value of pledged assets increasing from year-end 2024 - As of June 30, 2025, the Group's bank and other borrowings of approximately **RMB 4,454,919 thousand** were secured by the following pledged assets[64](index=64&type=chunk) Pledged Assets Details (As of Reporting Period End) | Pledged Asset Category | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Property and Equipment | 1,507,805 | 957,123 | +57.5% | | Investment Properties | 3,005,621 | 3,043,315 | -1.2% | | Completed Properties Held for Sale | 2,377,202 | 2,328,953 | +2.1% | | Investments in Associates | 318,475 | – | N/A | | **Total Pledged Assets** | **7,209,103** | **6,329,391** | **+13.9%** | [Foreign Exchange Risk and Funding Policy](index=23&type=section&id=Foreign%20Exchange%20Risk%20and%20Funding%20Policy) Operating primarily in China with revenues, costs, and borrowings denominated in RMB, the Group faces minimal foreign exchange fluctuation risk; it adopts a prudent funding policy, holding most cash in short-term RMB deposits without hedging - As the Group primarily operates in China, with revenues, operating costs, and borrowings mainly denominated in RMB, the **foreign exchange fluctuation risk undertaken by the Group is minimal**[65](index=65&type=chunk) - The Group adopts a **prudent funding policy** for cash and financial management, with cash typically held in short-term deposits, mostly denominated in RMB[66](index=66&type=chunk) - The Group **did not use any financial instruments for hedging purposes** during the period[66](index=66&type=chunk) [Guarantees and Contingent Liabilities](index=24&type=section&id=Guarantees%20and%20Contingent%20Liabilities) As of June 30, 2025, the Group's contingent liabilities, primarily mortgage loan guarantees for property buyers, amounted to approximately RMB 286,410 thousand, a decrease from year-end 2024 Guarantees and Contingent Liabilities (As of Reporting Period End) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Contingent Liabilities (Mortgage Loan Guarantees) | 286,410 | 359,727 | -20.4% | [Capital Commitments](index=24&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group's capital commitments for property development expenditures were approximately RMB 156,839 thousand, expected to be funded by internal resources and bank borrowings Capital Commitments (As of Reporting Period End) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Capital Commitments for Property Development Expenditures | 156,839 | 160,697 | -2.4% | - The Group expects to **fund the relevant capital commitments from its own resources and bank borrowings**[68](index=68&type=chunk) [Human Resources and Remuneration Policy](index=24&type=section&id=Human%20Resources%20and%20Remuneration%20Policy) As of June 30, 2025, the Group employed 1,147 staff, a decrease from year-end 2024; remuneration policy considers market conditions, industry trends, company performance, and employee performance, alongside providing continuous education and training Number of Employees (As of Reporting Period End) | Indicator | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Number of Employees | 1,147 persons | 1,232 persons | -7.06% | - Employee remuneration policy is determined by referencing **local market salary conditions**, combined with overall industry salary levels, inflation, corporate operating efficiency, and employee performance[69](index=69&type=chunk) - The Group also provides **continuous education and training programs** to enhance employees' skills and knowledge[69](index=69&type=chunk) [Strategies](index=24&type=section&id=Strategies) The Group will formulate effective marketing strategies, enhance product and service quality, strengthen cost and risk management, internal controls, and sustainable environmental management; growth strategies include identifying viable acquisition projects and improving investor relations management - Formulate **effective marketing strategies and plans** and enhance product and service quality to strengthen the brand[70](index=70&type=chunk) - Intensify efforts to develop **new policies, guidelines, systems, and procedures** to effectively facilitate cost management, risk management, internal controls, and sustainable environmental management[70](index=70&type=chunk) - Committed to identifying **acquirable projects with future development and profitability potential**, improving asset returns, and focusing on investor relations management[70](index=70&type=chunk) [Relationships with Employees, Customers and Suppliers](index=24&type=section&id=Relationships%20with%20Employees%2C%20Customers%20and%20Suppliers) The Group considers employees key to success, having adopted a share option scheme for motivation and continuously exploring mechanisms to align employee interests with Group development; it engages with customers to meet needs and adjusts operating strategies based on market trends - The Group believes that its **talent is a key factor for its success and competitive advantage** in the market[72](index=72&type=chunk) - A **share option scheme was adopted on May 20, 2015**, to incentivize and reward eligible participants, and the Group continues to explore suitable mechanisms to align employee interests with its long-term development[72](index=72&type=chunk) - A professional sales team continuously communicates with customers and potential customers to **identify and meet their needs** and assist them in making informed decisions[72](index=72&type=chunk) [Other Information](index=25&type=section&id=Other%20Information) This section covers additional information including events after the reporting period, environmental policies, interim dividends, audit committee review, securities transactions, corporate governance, and board composition [Events After the Reporting Period](index=25&type=section&id=Events%20After%20the%20Reporting%20Period) In July 2025, the Company repurchased and cancelled 166,744,883 shares arising from the Xin Nong Du acquisition transaction - In July 2025, the Company **repurchased and cancelled 166,744,883 shares** arising from the Xin Nong Du acquisition transaction[73](index=73&type=chunk) [Environmental Policies and Performance](index=25&type=section&id=Environmental%20Policies%20and%20Performance) The Group is committed to environmental protection, ensuring operations meet environmental standards, closely monitoring construction at all project stages, collaborating with suppliers to prevent pollution and reduce waste, and promoting environmental awareness among employees - The Group is committed to **protecting the environment** in its operating regions and ensuring consistent compliance with government environmental standards[74](index=74&type=chunk) - Construction processes are **closely monitored at different project stages** to ensure compliance with environmental and safety laws and regulations[74](index=74&type=chunk) - The Group collaborates with suppliers and contractors to ensure they are aware of environmental importance, **prevent pollution, reduce waste**, and encourages all employees to enhance environmental awareness[74](index=74&type=chunk) [Interim Dividends](index=25&type=section&id=Interim%20Dividends) The Board does not recommend the payment of any interim dividend for the current period - The Board does not recommend the payment of any **interim dividend** for the current period (six months ended June 30, 2024: nil)[75](index=75&type=chunk) [Audit Committee](index=25&type=section&id=Audit%20Committee) The Audit Committee reviewed the Group's unaudited consolidated interim results, discussing accounting standards, internal controls, and financial reporting with management; external auditor Ernst & Young reviewed these results in accordance with HKSAE 2410 - The Company's Audit Committee has reviewed the Group's **unaudited consolidated interim results** for the period, and discussed the accounting standards and practices adopted by the Group, as well as internal controls and financial reporting matters with the Group's management[76](index=76&type=chunk) - The Company's external auditor, Ernst & Young, has reviewed the Group's unaudited consolidated interim results for the period in accordance with **Hong Kong Standard on Review Engagements 2410** issued by the Hong Kong Institute of Certified Public Accountants[76](index=76&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=26&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the reporting period, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities on the Stock Exchange - During the period, neither the Company nor its subsidiaries **purchased, sold, or redeemed any of the Company's shares** on the Stock Exchange[77](index=77&type=chunk) [Standard Code for Securities Transactions by Directors](index=26&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company adopted a code of conduct for directors' securities transactions no less exacting than the Listing Rules' standard code, with all directors confirming compliance during the reporting period - The Company has adopted a **code of conduct for directors' securities transactions** whose terms are no less exacting than the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 to the Listing Rules[78](index=78&type=chunk) - All Directors have confirmed that they have **complied with the required standards** set out in the Model Code during the period and up to the date of this announcement[78](index=78&type=chunk) [Compliance with the Corporate Governance Code](index=26&type=section&id=Compliance%20with%20the%20Corporate%20Governance%20Code) The Board adopted and reviewed the Corporate Governance Code, confirming the Company's compliance with the code during the reporting period - The Board has adopted the applicable principles and code provisions set out in the **Corporate Governance Code** in Appendix C1 to the Listing Rules[79](index=79&type=chunk) - The Board has reviewed the Company's corporate governance practices and is satisfied that the Company has **complied with the code provisions** set out in the Corporate Governance Code during the period and up to the date of this announcement[79](index=79&type=chunk) [Publication of Interim Results Announcement and Interim Report on the Company's and HKEX Websites](index=26&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report%20on%20the%20Company%27s%20and%20HKEX%20Websites) This interim results announcement is published on the Company's and HKEX websites, with the interim report to be published and dispatched to shareholders in due course - This announcement is published on the Company's website (www.chinanewcity.com.cn) and the HKEX website (www.hkexnews.hk)[80](index=80&type=chunk) - The Company's interim report for the period, containing relevant information required by the Listing Rules, will be **published on the aforementioned websites and dispatched to the Company's shareholders** in due course[80](index=80&type=chunk) [Board of Directors](index=26&type=section&id=Board%20of%20Directors) As of this announcement date, the Company's Board of Directors comprises Executive Directors Mr. Shi Nanlu, Mr. Jin Jianrong, and Ms. Chen Jing; Non-executive Director Mr. Shi Zhongan; and Independent Non-executive Directors Mr. Xu Chengfa, Mr. Lin Youyao, and Mr. Yuan Yuan - As of the date of this announcement, the Company's Board of Directors comprises **Executive Directors Mr. Shi Nanlu, Mr. Jin Jianrong, and Ms. Chen Jing**; **Non-executive Director Mr. Shi Zhongan**; and **Independent Non-executive Directors Mr. Xu Chengfa, Mr. Lin Youyao, and Mr. Yuan Yuan**[80](index=80&type=chunk)