I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01583 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | 1,000,000,000 | HKD | | 0.01 | HKD | | 10,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | | | 本月底結存 | | 1,000,000,000 | HKD | | 0.01 | HKD | | 10,000,000 | 本月底法定/註冊股本總額： HKD 10,000,000 FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年9月30日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 親親食品集團 (開曼) 股份有限公司 ...

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 截至月份: 2025年8月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 親親食品集團 (開曼) 股份有限公司 (於開曼群島註冊成立的有限公司) 呈交日期: 2025年9月2日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01583 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 1,000,000,000 | HKD | | 0.01 HKD | | 10,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | | | 本月底結存 | | | 1,000,000,000 | HKD | | 0.01 HKD | | 10,000,000 | 本 ...

[Company Information](index=2&type=section&id=Company%20Information) This section provides essential company details, including board members, key contacts, listing information, and primary business activities - Executive Directors include **Mr. Xu Qingliu** (Chairman), **Mr. Huang Weiliang** (CFO), and **Mr. Wu Wenxu** (CEO)[4](index=4&type=chunk) - The Company's shares are listed on The Stock Exchange of Hong Kong Limited, stock code **1583**[4](index=4&type=chunk) - The Group primarily engages in the manufacturing, distribution, and sale of food and snack products in the People's Republic of China[24](index=24&type=chunk) [Financial Highlights](index=4&type=section&id=Financial%20Highlights) This section summarizes the Group's unaudited key financial performance and ratios for the six months ended June 30, 2025, showing declines in revenue, gross profit, and profit attributable to shareholders, alongside changes in assets and equity Key Financial Performance and Ratios (Unaudited, RMB thousands) | For the six months ended June 30 | 2025 | 2024 | Change | | :------------------------------- | :------- | :------- | :------- | | Revenue | 529,747 | 563,585 | -6.0% | | Gross Profit | 154,203 | 171,722 | -10.2% | | Gross Profit Margin | 29.1% | 30.5% | -1.4 percentage points | | Profit attributable to equity holders of the Company | 21,551 | 32,809 | -34.3% | | Adjusted EBITDA | 70,209 | 78,790 | -10.9% | | Basic earnings per share | RMB0.029 | RMB0.043 | | | Diluted earnings per share | RMB0.029 | RMB0.043 | | | **As at June 30** | **2025** | **2024** | **Change** | | Total Assets | 1,683,404 | 1,943,865 | -13.4% | | Net Cash Position | 277,100 | 415,079 | -33.2% | | Net Current Assets | 235,377 | 182,113 | 29.2% | | Total equity attributable to equity holders of the Company | 1,231,539 | 1,219,861 | 1.0% | | Return on equity (annualized) | 3.5% | 1.7% | 1.8 percentage points | | Net asset value per share | RMB1.6 | RMB1.6 | | [Interim Condensed Consolidated Financial Information](index=5&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Information) This chapter presents the unaudited interim condensed consolidated financial information for Kinmen Food Group for the six months ended June 30, 2025, including statements of profit or loss, comprehensive income, financial position, changes in equity, and cash flows, along with explanatory notes, all reviewed by the audit committee and auditors [Review Report on Interim Condensed Consolidated Financial Information](index=5&type=section&id=Review%20Report%20on%20Interim%20Condensed%20Financial%20Information) Tianzhu Hong Kong Certified Public Accountants Limited reviewed the interim condensed consolidated financial information for the six months ended June 30, 2025, concluding no material non-compliance with HKAS 34 - The auditor is **Tianzhu Hong Kong Certified Public Accountants Limited**[14](index=14&type=chunk) - The scope of review is significantly less than an audit, thus no audit opinion was expressed[12](index=12&type=chunk) - The review concluded that nothing has come to the auditor's attention that causes them to believe the interim condensed consolidated financial information is not prepared, in all material respects, in accordance with HKAS 34[13](index=13&type=chunk) [Interim Condensed Consolidated Statement of Profit or Loss](index=6&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) This statement presents the Group's revenue, cost of sales, gross profit, expenses, and profit for the six months ended June 30, 2025, indicating a decline in both revenue and period profit compared to the prior year Interim Condensed Consolidated Statement of Profit or Loss (Unaudited, RMB thousands) | Metric | 2025 | 2024 | | :--- | :------- | :------- | | Revenue | 529,747 | 563,585 | | Cost of sales | (375,544) | (391,863) | | Gross Profit | 154,203 | 171,722 | | Distribution and selling expenses | (64,347) | (67,408) | | Administrative expenses | (66,477) | (68,729) | | Other income and gains/(losses) — net | 6,073 | (109) | | Operating profit | 29,452 | 35,476 | | Finance income | 3,913 | 6,315 | | Finance costs | (4,039) | (4,609) | | Share of net loss of associates | (86) | (213) | | Profit before income tax | 29,240 | 36,969 | | Income tax expense | (7,689) | (4,160) | | Profit for the period | 21,551 | 32,809 | | Basic earnings per share | RMB0.029 | RMB0.043 | | Diluted earnings per share | RMB0.029 | RMB0.043 | [Interim Condensed Consolidated Statement of Comprehensive Income](index=7&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) This statement outlines the Group's profit for the period and other comprehensive income/(loss) for the six months ended June 30, 2025, primarily including property revaluation gains, leading to total comprehensive income for the period Interim Condensed Consolidated Statement of Comprehensive Income (Unaudited, RMB thousands) | Metric | 2025 | 2024 | | :--- | :------- | :------- | | Profit for the period | 21,551 | 32,809 | | Other comprehensive income/(loss) for the period (after tax): | | | | Fair value loss on financial assets measured at fair value through other comprehensive income | — | (1,265) | | Revaluation surplus on properties | 5,229 | 1,044 | | Other comprehensive income/(loss) for the period | 5,229 | (221) | | Total comprehensive income for the period | 26,780 | 32,588 | [Interim Condensed Consolidated Statement of Financial Position](index=8&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement details the Group's assets, equity, and liabilities as of June 30, 2025, showing a decrease in total assets, a slight increase in total equity, and a significant reduction in current liabilities compared to December 31, 2024 Interim Condensed Consolidated Statement of Financial Position (Unaudited, RMB thousands) | Metric | 2025年6月30日 | 2024年12月31日 | | :--- | :--------------- | :--------------- | | **ASSETS** | | | | Non-current assets | 1,119,694 | 1,190,336 | | Current assets | 563,710 | 753,529 | | **TOTAL ASSETS** | **1,683,404** | **1,943,865** | | **EQUITY** | | | | Total equity | 1,231,539 | 1,219,861 | | **LIABILITIES** | | | | Non-current liabilities | 123,532 | 152,588 | | Current liabilities | 328,333 | 571,416 | | **TOTAL LIABILITIES** | **451,865** | **724,004** | | **TOTAL EQUITY AND LIABILITIES** | **1,683,404** | **1,943,865** | [Interim Condensed Consolidated Statement of Changes in Equity](index=10&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This statement illustrates the Group's equity changes for the six months ended June 30, 2025, encompassing opening balances, profit for the period, other comprehensive income (e.g., property revaluation gains), and shareholder transactions like dividend distributions and statutory reserve transfers Interim Condensed Consolidated Statement of Changes in Equity (Unaudited, RMB thousands) | Metric | Share capital | Other reserves | Retained earnings | Total equity | | :--- | :--- | :--- | :--- | :--- | | At January 1, 2025 | 6,433 | 699,907 | 513,521 | 1,219,861 | | Profit for the period | — | — | 21,551 | 21,551 | | Revaluation surplus on properties (after tax) | — | 5,229 | — | 5,229 | | Dividends recognised as distribution | — | — | (15,102) | (15,102) | | Transfer to statutory reserve | — | 4,738 | (4,738) | — | | At June 30, 2025 | 6,433 | 709,874 | 515,232 | 1,231,539 | [Interim Condensed Consolidated Statement of Cash Flows](index=11&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This statement presents the Group's cash flows from operating, investing, and financing activities for the six months ended June 30, 2025, showing net cash outflow from operations, net cash inflow from investing, and net cash outflow from financing, resulting in a net decrease in cash and cash equivalents Interim Condensed Consolidated Statement of Cash Flows (Unaudited, RMB thousands) | Metric | 2025 | 2024 | | :--- | :------- | :------- | | Net cash (used in)/generated from operating activities | (107,002) | 42,404 | | Net cash generated from/(used in) investing activities | 74,447 | (80,359) | | Net cash used in financing activities | (37,468) | (20,432) | | Net decrease in cash and cash equivalents | (70,023) | (58,387) | | Cash and cash equivalents at end of period | 384,671 | 413,262 | [Notes to the Interim Condensed Consolidated Financial Information](index=12&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) This section provides detailed notes to the interim condensed consolidated financial information, covering general information, basis of preparation, accounting policies, specific explanations for assets, liabilities, equity, and cash flows, as well as financial risk management, segment information, and related party transactions [1. General Information](index=13&type=section&id=1.%20General%20Information) This note introduces Kinmen Food Group (Cayman) Company Limited's basic information, including its registration, principal place of business, listing status, and primary operations in China - The Company was incorporated in the Cayman Islands as an exempted company with limited liability on **January 14, 2016**[24](index=24&type=chunk) - The Group primarily engages in the manufacturing, distribution, and sale of food and snack products in China[24](index=24&type=chunk) - The Company's shares have been listed on The Stock Exchange of Hong Kong Limited since **July 8, 2016**[25](index=25&type=chunk) [2. Basis of Preparation](index=13&type=section&id=2.%20Basis%20of%20Preparation) This note explains that the interim condensed consolidated financial information is prepared in accordance with HKAS 34 'Interim Financial Reporting' and the disclosure requirements of the HKEX Listing Rules - The interim condensed consolidated financial information has been prepared in accordance with **HKAS 34** "Interim Financial Reporting"[27](index=27&type=chunk) - It should be read in conjunction with the annual financial statements for the year ended **December 31, 2024**[27](index=27&type=chunk) [3. Significant Accounting Policies](index=13&type=section&id=3.%20Significant%20Accounting%20Policies) This note outlines the significant accounting policies used for the interim condensed consolidated financial information, primarily based on historical cost, with fair value measurement for investment properties and specific financial assets; new standards adopted had no material impact - The interim condensed consolidated financial information is prepared on the historical cost basis, except for investment properties and certain financial assets measured at fair value[28](index=28&type=chunk) - The Group first adopted **HKAS 21 (Amendment)** "Lack of Exchangeability" on **January 1, 2025**[29](index=29&type=chunk) - The adoption of the amended standards had no material impact on the Group's financial position and performance for the current and prior interim periods[29](index=29&type=chunk) [4. Critical Accounting Estimates and Judgements](index=14&type=section&id=4.%20Critical%20Accounting%20Estimates%20and%20Judgements) This note describes the critical accounting estimates and judgments made by management in preparing the interim condensed consolidated financial information, consistent with those used for the annual financial statements for the year ended December 31, 2024 - The significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty are the same as those used in the consolidated financial statements for the year ended **December 31, 2024**[30](index=30&type=chunk) [5. Financial Risk Management](index=14&type=section&id=5.%20Financial%20Risk%20Management) This note details the Group's financial risks, including market (foreign exchange, interest rate), credit, and liquidity risks, providing maturity analysis for liquidity risk and fair value estimates for financial instruments; risk management policies remained unchanged since late 2024 [5.1 Financial Risk Factors](index=14&type=section&id=5.1%20Financial%20Risk%20Factors) This note outlines the Group's exposure to market (foreign exchange, interest rate), credit, and liquidity risks, confirming no changes in risk management policies since late 2024 - The Group's operating activities expose it to various financial risks: market risk (including foreign exchange risk, cash flow interest rate risk, and fair value interest rate risk), credit risk, and liquidity risk[31](index=31&type=chunk) - The Group's risk management policies have not changed since the end of **2024**[32](index=32&type=chunk) [5.2 Liquidity Risk](index=15&type=section&id=5.2%20Liquidity%20Risk) This note analyzes the Group's liquidity risk for non-derivative financial liabilities, categorized by contractual maturity dates, presenting total undiscounted cash flows and carrying amounts Non-derivative Financial Liabilities Liquidity Risk Analysis (Unaudited, RMB thousands, June 30, 2025) | Metric | Weighted average interest rate | Less than 1 year | 1 to 2 years | 2 to 5 years | More than 5 years | Total undiscounted cash flows | Carrying amount | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Trade and bills payables | | 155,925 | — | — | — | 155,925 | 155,925 | | Other payables (excluding non-financial liabilities) | | 38,159 | — | — | — | 38,159 | 38,159 | | Borrowings | 2.43% | 32,970 | 34,882 | 91,290 | — | 159,142 | 150,101 | | **Total** | | **227,054** | **34,882** | **91,290** | **—** | **353,226** | **344,185** | [5.3 Fair Value Estimation of Financial Instruments](index=16&type=section&id=5.3%20Fair%20Value%20Estimation%20of%20Financial%20Instruments) This note analyzes the Group's financial instruments measured at fair value, primarily Level 3 financial assets (including unlisted equity investments), detailing valuation methods and sensitivity analysis, with no transfers between fair value hierarchy levels during the period Financial Assets Measured at Fair Value (Unaudited, RMB thousands) | Metric | 2025年6月30日 | 2024年12月31日 | | :--- | :--------------- | :--------------- | | Financial assets measured at fair value through profit or loss — Level 3 | 2,000 | 2,000 | | Financial assets measured at fair value through other comprehensive income — Level 3 | 18,867 | 18,867 | | **Total** | **20,867** | **20,867** | - Level 3 financial assets primarily use valuation techniques with unobservable inputs, developed by external valuers or internally and reviewed by management[36](index=36&type=chunk) - There were no transfers between fair value hierarchy levels for financial instruments for the six months ended **June 30, 2025**[36](index=36&type=chunk) [5.4 Fair Value of Financial Assets and Liabilities Measured at Amortized Cost](index=18&type=section&id=5.4%20Fair%20Value%20of%20Financial%20Assets%20and%20Liabilities%20Measured%20at%20Amortized%20Cost) This note states that the fair values of financial assets and liabilities measured at amortized cost, including trade and other receivables, cash and bank balances, trade and other payables, and borrowings, approximate their carrying amounts at the reporting date - At the reporting date, the fair values of trade receivables, other receivables and deposits, cash and bank balances, trade and bills payables, other payables, and borrowings approximated their carrying amounts[41](index=41&type=chunk)[43](index=43&type=chunk) [6. Revenue and Segment Information](index=18&type=section&id=6.%20Revenue%20and%20Segment%20Information) This note discloses the Group's revenue and performance across its four reportable operating segments (jelly, puffed food, seasoning, candy, and other products), providing sales revenue, cost of sales, and gross profit data for each segment - The Group has four reportable operating segments: jelly products, puffed food products, seasoning products, and candy and other products[43](index=43&type=chunk) Segment Revenue and Results (Unaudited, RMB thousands, For the six months ended June 30, 2025) | Segment | Revenue | Cost of sales | Segment results (Gross profit) | | :--- | :--- | :--- | :--- | | Jelly products | 316,372 | (224,150) | 92,222 | | Puffed food products | 149,028 | (105,726) | 43,302 | | Seasoning products | 34,165 | (21,711) | 12,454 | | Candy and other products | 30,182 | (23,957) | 6,225 | | **Group total** | **529,747** | **(375,544)** | **154,203** | Segment Revenue and Results (Unaudited, RMB thousands, For the six months ended June 30, 2024) | Segment | Revenue | Cost of sales | Segment results (Gross profit) | | :--- | :--- | :--- | :--- | | Jelly products | 338,625 | (232,339) | 106,286 | | Puffed food products | 153,500 | (108,958) | 44,542 | | Seasoning products | 41,503 | (26,717) | 14,786 | | Candy and other products | 29,957 | (23,849) | 6,108 | | **Group total** | **563,585** | **(391,863)** | **171,722** | [7. Expenses by Nature](index=21&type=section&id=7.%20Expenses%20by%20Nature) This note categorizes the Group's expenses by nature, including raw materials, employee benefits, utilities, transportation, depreciation, and marketing costs, which collectively form cost of sales, distribution and selling expenses, and administrative expenses Expenses by Nature (Unaudited, RMB thousands) | Expense category | 2025 | 2024 | | :--- | :------- | :------- | | Raw materials and consumables used | 240,814 | 253,653 | | Changes in inventories of work-in-progress and finished goods | 23,043 | 26,177 | | Staff welfare expenses | 99,102 | 97,551 | | Utilities and office expenses | 44,489 | 40,316 | | Transportation and packaging expenses | 29,458 | 30,094 | | Depreciation of property, plant and equipment | 40,250 | 42,663 | | Marketing and promotion costs | 5,610 | 3,205 | | **Total** | **506,368** | **528,000** | [8. Other Income and Gains/(Losses) — Net](index=21&type=section&id=8.%20Other%20Income%20and%20Gains%2F(Losses)%20%E2%80%94%20Net) This note presents the Group's net other income and gains/(losses) for the six months ended June 30, 2025, primarily comprising government grants, gains on disposal of property, plant and equipment, and impairment loss on construction in progress, showing a significant improvement from a prior-year loss to a net gain Other Income and Gains/(Losses) — Net (Unaudited, RMB thousands) | Item | 2025 | 2024 | | :--- | :------- | :------- | | Government grants | 2,416 | 333 | | Gain/(loss) on disposal of property, plant and equipment — net | 5,530 | (6,134) | | Gain on early termination of lease contracts | — | 3,061 | | Impairment loss on construction in progress | (5,357) | — | | Operating lease income | 2,579 | 2,250 | | **Total** | **6,073** | **(109)** | - The period saw a gain of **RMB5,530 thousands** from the disposal of property, plant and equipment, compared to a loss of **RMB6,134 thousands** in the prior period[47](index=47&type=chunk) - An impairment loss of **RMB5,357 thousands** on construction in progress was recorded this period[47](index=47&type=chunk) [9. Finance Income and Finance Costs](index=22&type=section&id=9.%20Finance%20Income%20and%20Finance%20Costs) This note details the Group's finance income and costs for the six months ended June 30, 2025, with finance income mainly from bank deposits and finance costs primarily from borrowing interest and foreign exchange losses, resulting in net finance costs for the period Finance Income and Finance Costs (Unaudited, RMB thousands) | Item | 2025 | 2024 | | :--- | :------- | :------- | | Finance income: Interest income from bank deposits | 3,913 | 6,315 | | Finance costs: Interest expense on borrowings | (2,698) | (3,896) | | Foreign exchange losses | (813) | (18) | | Other finance costs | (528) | (544) | | **Net finance (costs)/income** | **(126)** | **1,706** | - Net finance costs for the period amounted to a loss of **RMB126 thousands**, compared to a gain of **RMB1,706 thousands** in the prior period[48](index=48&type=chunk) [10. Income Tax Expense](index=22&type=section&id=10.%20Income%20Tax%20Expense) This note discloses the Group's income tax expense for the six months ended June 30, 2025, including current and deferred tax, noting a 25% statutory income tax rate for PRC subsidiaries and no deferred tax liability recognized for unremitted profits Income Tax Expense (Unaudited, RMB thousands) | Item | 2025 | 2024 | | :--- | :------- | :------- | | Current income tax — PRC enterprise income tax | 4,782 | 3,418 | | Net deferred income tax | 2,907 | 742 | | **Income tax expense** | **7,689** | **4,160** | - The statutory income tax rate for the Company and its PRC subsidiaries was **25%** for both periods[50](index=50&type=chunk) - As of **June 30, 2025**, no deferred income tax liability was recognized for withholding tax payable on unremitted profits of PRC subsidiaries, amounting to approximately **RMB2,042 thousands**[52](index=52&type=chunk) [11. Earnings Per Share](index=23&type=section&id=11.%20Earnings%20Per%20Share) This note provides the Group's basic and diluted earnings per share for the six months ended June 30, 2025, with diluted EPS being the same as basic EPS due to share options' exercise price exceeding the average market price, thus having no dilutive effect [11.1 Basic](index=23&type=section&id=11.1%20Basic) This note calculates basic earnings per share for the six months ended June 30, 2025, by dividing profit attributable to equity holders by the weighted average number of ordinary shares outstanding Basic Earnings Per Share (Unaudited, RMB) | Item | 2025 | 2024 | | :--- | :------- | :------- | | Profit attributable to equity holders of the Company (RMB thousands) | 21,551 | 32,809 | | Weighted average number of ordinary shares for basic earnings per share | 755,096,557 | 755,096,557 | | **Basic earnings per share** | **RMB0.029** | **RMB0.043** | [11.2 Diluted](index=23&type=section&id=11.2%20Diluted) This note explains that diluted earnings per share for the six months ended June 30, 2025, is identical to basic earnings per share because the exercise price of share options exceeded the average market price, resulting in no dilutive impact - Diluted earnings per share for the periods ended **June 30, 2025**, and **June 30, 2024**, were the same as basic earnings per share[55](index=55&type=chunk) - This is because the exercise price of the Company's share options was higher than the average market price of the Company's shares during the period, resulting in no dilutive effect on ordinary shares[55](index=55&type=chunk) [12. Dividends](index=23&type=section&id=12.%20Dividends) This note discloses that the Group paid the 2024 final dividend in June 2025, but the Board decided not to declare an interim dividend for the six months ended June 30, 2025 - The **2024** final dividend of **RMB0.02** per share (totaling **RMB15,102 thousands**) was fully paid in **June 2025**[56](index=56&type=chunk) - The Board decided not to declare an interim dividend for the six months ended **June 30, 2025**[56](index=56&type=chunk) [13. Property, Plant and Equipment, Investment Properties, Construction in Progress and Intangible Assets](index=24&type=section&id=13.%20Property%2C%20Plant%20and%20Equipment%2C%20Investment%20Properties%2C%20Construction%20in%20Progress%20and%20Intangible%20Assets) This note details changes in the Group's property, plant and equipment, investment properties, construction in progress, and intangible assets during the reporting period, including additions, transfers, disposals, impairment losses, revaluation surpluses, and depreciation/amortization, with revaluation gains recognized from property reclassification to investment properties Property, Plant and Equipment and Other Asset Movements (Unaudited, RMB thousands, For the six months ended June 30, 2025) | Item | Property, plant and equipment | Investment properties | Construction in progress | Intangible assets | | :--- | :--- | :--- | :--- | :--- | | At January 1, 2025 | 1,011,799 | 34,232 | 15,407 | 1,417 | | Additions | 7,067 | — | 10,370 | — | | Transfers | (43,256) | 44,205 | (949) | — | | Disposals | (29,383) | — | — | — | | Impairment loss | — | — | (5,357) | — | | Revaluation surplus | — | 6,973 | — | — | | Depreciation/amortisation for the period | (40,250) | — | — | (167) | | **At June 30, 2025** | **905,977** | **87,106** | **19,471** | **1,250** | - The Group changed the use of certain property, plant and equipment and land use rights, leasing them to independent third parties to earn rental income, recognizing a revaluation surplus of approximately **RMB6,973 thousands**[59](index=59&type=chunk) - As of **June 30, 2025**, land use rights and buildings with a net book value of **RMB361,377 thousands** were pledged as collateral for borrowings of **RMB150,101 thousands**[59](index=59&type=chunk) [14. Leases](index=25&type=section&id=14.%20Leases) This note discloses the carrying amount of the Group's right-of-use assets (land use rights), mentions ongoing title processing for some land use rights, and reports gains from early lease terminations and total lease cash outflows Right-of-Use Assets (Unaudited, RMB thousands) | Item | 2025年6月30日 | 2024年12月31日 | | :--- | :--------------- | :--------------- | | Land use rights | 51,443 | 70,465 | - As of **June 30, 2025**, land use rights amounting to approximately **RMB5,818 thousands** were still in the process of obtaining property ownership certificates[60](index=60&type=chunk) - For the six months ended **June 30, 2024**, the Group recognized a gain of **RMB3,061 thousands** from early termination of lease contracts[60](index=60&type=chunk) [15. Trade Receivables](index=25&type=section&id=15.%20Trade%20Receivables) This note provides an aging analysis of the Group's trade receivables, showing most are within 30 days, with credit terms of 30 to 90 days and no significant concentration of credit risk due to a diverse customer base Trade Receivables Aging Analysis (Unaudited, RMB thousands) | Aging | 2025年6月30日 | 2024年12月31日 | | :--- | :--------------- | :--------------- | | Within 30 days | 11,249 | 13,384 | | 31-180 days | 3,083 | 1,613 | | 181-365 days | 20 | 40 | | Over 365 days | 40 | — | | **Total** | **14,392** | **15,037** | - The Group grants credit terms of **30 to 90 days** for trade receivables to its customers[61](index=61&type=chunk) - Due to a large number of customers, the Group has no significant concentration of credit risk in trade receivables[61](index=61&type=chunk) [16. Cash and Bank Balances](index=26&type=section&id=16.%20Cash%20and%20Bank%20Balances) This note details the Group's cash and bank balances, comprising cash and cash equivalents, restricted bank deposits, and time deposits, with restricted deposits primarily pledged for trade finance facilities Cash and Bank Balances (Unaudited, RMB thousands) | Item | 2025年6月30日 | 2024年12月31日 | | :--- | :--------------- | :--------------- | | Cash and cash equivalents | 384,671 | 455,507 | | Restricted bank deposits — current | 19,494 | 43,171 | | Time deposits — current | 23,036 | 88,868 | | **Total** | **427,201** | **587,546** | - Restricted bank deposits are pledged with banks by the Group to obtain trade finance facilities[63](index=63&type=chunk) [17. Share Capital](index=26&type=section&id=17.%20Share%20Capital) This note discloses the Group's share capital information, indicating that the number of issued shares and share capital amount remained unchanged as of June 30, 2025, compared to the beginning of the period Share Capital (Unaudited, RMB thousands) | Item | Number of shares 2025 | RMB thousands 2025 | | :--- | :--------------- | :--------------- | | At January 1 and June 30 | 755,096,557 | 6,433 | [18. Share Option Scheme](index=26&type=section&id=18.%20Share%20Option%20Scheme) This note details the Company's 2017 share option scheme, including grants, cancellations/lapses, and exercisable options as of June 30, 2025, with their exercise prices and validity periods, noting no equity-settled share-based payment expense recognized this period - The Company adopted a share option scheme on **May 16, 2017**[66](index=66&type=chunk) Movement in Number of Share Options (Unaudited) | Item | Balance at January 1, 2025 | Cancelled/lapsed during the period | Balance at June 30, 2025 | | :--- | :--------------- | :--------------- | :--------------- | | Share options granted (exercise price HKD2.19 per share) | 2,884,000 | (136,000) | 2,748,000 | - The amount recognized as equity-settled share-based payment expense for the six months ended **June 30, 2025**, was **nil**[67](index=67&type=chunk) [19. Trade and Bills Payables](index=28&type=section&id=19.%20Trade%20and%20Bills%20Payables) This note provides an aging analysis of the Group's trade and bills payables, showing most are within 180 days as of June 30, 2025, with a significant decrease in total amount compared to December 31, 2024 Trade and Bills Payables Aging Analysis (Unaudited, RMB thousands) | Aging | 2025年6月30日 | 2024年12月31日 | | :--- | :--------------- | :--------------- | | Within 30 days | 54,804 | 82,890 | | 31 to 180 days | 100,988 | 232,686 | | 181 to 365 days | 16 | 194 | | Over 365 days | 117 | 378 | | **Total** | **155,925** | **316,148** | [20. Borrowings](index=29&type=section&id=20.%20Borrowings) This note discloses the Group's current and non-current borrowings, primarily secured bank loans, showing a decrease in total borrowings and a lower weighted average effective annual interest rate as of June 30, 2025 Borrowings (Unaudited, RMB thousands) | Category | 2025年6月30日 | 2024年12月31日 | | :--- | :--------------- | :--------------- | | Current: Bank loans — secured | 29,483 | 27,733 | | Non-current: Bank loans — secured | 120,618 | 136,234 | | **Total borrowings** | **150,101** | **172,467** | - Secured borrowings are collateralized by the Group's land use rights and buildings[72](index=72&type=chunk) - For the six months ended **June 30, 2025**, the weighted average effective annual interest rate for borrowings was **2.43%** (year ended December 31, 2024: **2.71%**)[72](index=72&type=chunk) [21. Commitments](index=29&type=section&id=21.%20Commitments) This note details the Group's capital and other commitments, including contracted but unprovided capital expenditures and minimum lease payments for irrevocable short-term property leases, also disclosing future undiscounted lease payments receivable as a lessor [21. (a) Capital Commitments](index=29&type=section&id=21.%20%28a%29%20Capital%20Commitments) This note discloses the Group's significant capital expenditures contracted but not yet recognized as liabilities as of June 30, 2025, primarily for machinery and equipment and buildings Capital Commitments (Unaudited, RMB thousands) | Item | 2025年6月30日 | 2024年12月31日 | | :--- | :--------------- | :--------------- | | Contracted but not provided for: Machinery and equipment | 9,158 | 8,122 | | Contracted but not provided for: Buildings | 11,664 | 18,034 | | **Total** | **20,822** | **26,156** | [21. (b) Other Commitments](index=30&type=section&id=21.%20%28b%29%20Other%20Commitments) This note discloses the Group's minimum lease payments due in the future under irrevocable short-term property leases and other irrevocable contracts as of June 30, 2025 Other Commitments (Unaudited, RMB thousands) | Item | 2025年6月30日 | 2024年12月31日 | | :--- | :--------------- | :--------------- | | Within 1 year | 219 | 2,085 | [21. (c) The Group as Lessor](index=30&type=section&id=21.%20%28c%29%20The%20Group%20as%20Lessor) This note explains that the Group leases out several buildings and warehouses under operating leases, typically with initial terms of 2 to 10 years, and presents future undiscounted lease payments receivable - The Group leases out several buildings and warehouses under operating leases, with initial lease terms typically ranging from **2 to 10 years**[75](index=75&type=chunk) Undiscounted Lease Payments Receivable (Unaudited, RMB thousands) | Period | 2025年6月30日 | 2024年12月31日 | | :--- | :--------------- | :--------------- | | Within one year | 6,587 | 5,129 | | In the second year | 6,575 | 4,830 | | In the third to fifth years inclusive | 9,765 | 7,245 | | In the sixth to tenth years inclusive | 2,763 | — | | **Total** | **25,690** | **17,204** | [22. Related Party Transactions](index=30&type=section&id=22.%20Related%20Party%20Transactions) This note discloses the Group's significant related party transactions, including office leases and goods purchases, as well as compensation for key management personnel [22. (a) Transactions with Related Parties](index=31&type=section&id=22.%20%28a%29%20Transactions%20with%20Related%20Parties) This note lists the transaction amounts between the Group and related parties, Lianjie Sports Investment Co., Ltd. (office rental) and Fujian Shuncheng Flour Industry Development Co., Ltd. (purchase of goods) Transactions with Related Parties (Unaudited, RMB thousands) | Related party | Type of transaction | 2025 | 2024 | | :--- | :--- | :--- | :--- | | Lianjie Sports Investment Co., Ltd. | Office rental | 221 | 218 | | Fujian Shuncheng Flour Industry Development Co., Ltd. | Purchase of goods | 288 | 69 | - Lianjie Sports is wholly owned by **Mr. Xu Qingliu**, one of the Company's directors[80](index=80&type=chunk) - Shuncheng Flour Industry is controlled by a former director and a current director of the Company and their associates[82](index=82&type=chunk) [22. (b) Key Management Personnel Compensation](index=31&type=section&id=22.%20%28b%29%20Key%20Management%20Personnel%20Compensation) This note discloses the total remuneration for key management personnel, including directors and certain senior management, for the six months ended June 30, 2025 - Key management personnel compensation for the six months ended **June 30, 2025**, was approximately **RMB2,197 thousands** (2024: **RMB2,067 thousands**)[83](index=83&type=chunk) [Management Discussion and Analysis](index=32&type=section&id=Management%20Discussion%20and%20Analysis) This chapter discusses Kinmen Food Group's operating results, industry environment, product segment performance, cost control, strategic development, product innovation, marketing, channel expansion, production facility optimization, future outlook, and financial position for the six months ended June 30, 2025, highlighting challenges from intense market competition and declining revenue, alongside proactive strategic adjustments [Industry Environment](index=32&type=section&id=Industry%20Environment) In the first half of 2025, China's food and snack market faced intense competition, with emerging snack chains impacting traditional channels; rising consumer price sensitivity increased demand for high-quality, nutritious, and cost-effective products, necessitating continuous innovation and adaptability from the Group - China's food and snack market faces intense competition, with the growth of emerging snack chains stabilizing[86](index=86&type=chunk) - The Group faces challenges from price pressure, demand for product innovation, and the need to enhance brand recognition[86](index=86&type=chunk) - Consumer purchasing behavior is shifting towards value for money, emphasizing taste, nutrition, enjoyment, and functional value[86](index=86&type=chunk) [Business Review](index=32&type=section&id=Business%20Review) During the reporting period, the Group's cumulative sales revenue decreased by **6.0%** year-on-year to **RMB529.7 millions**, with gross profit and gross profit margin also declining by **10.2%** and **1.4 percentage points**, respectively; profit attributable to equity holders decreased by approximately **RMB11.2 millions**, primarily due to reduced traditional sales channels, partially offset by growth in snack chain, OEM, and export businesses [Jelly Products](index=33&type=section&id=Jelly%20Products) Jelly product sales decreased by **6.6%** year-on-year to **RMB316.4 millions**, with gross profit down **13.3%** and gross profit margin falling **2.3 percentage points** to **29.1%**, mainly due to reduced traditional sales channels and competitors' lower-priced offerings - Jelly product sales amounted to approximately **RMB316.4 millions**, a year-on-year decrease of approximately **6.6%**[89](index=89&type=chunk) - Gross profit was approximately **RMB92.2 millions**, a year-on-year decrease of approximately **13.3%**; gross profit margin was **29.1%**, a year-on-year decrease of approximately **2.3 percentage points**[89](index=89&type=chunk) - The sales decline was primarily due to reduced traditional sales channels and competitors introducing lower-priced products[89](index=89&type=chunk) [Puffed Food Products](index=34&type=section&id=Puffed%20Food%20Products) Puffed food product sales slightly decreased by **2.9%** year-on-year to **RMB149.0 millions**, while gross profit margin slightly increased by **0.1 percentage points** to **29.1%**; the sales decline was primarily due to weak performance in traditional channels, partially offset by increased sales to snack chains, exports, and OEM businesses - Puffed food product sales amounted to approximately **RMB149.0 millions**, a year-on-year decrease of approximately **2.9%**[92](index=92&type=chunk) - Gross profit margin was **29.1%**, a year-on-year increase of approximately **0.1 percentage points**[92](index=92&type=chunk) - The slight sales decline was mainly due to weak performance in traditional channels, but sales to snack chains, exports, and OEM businesses increased[92](index=92&type=chunk) [Seasoning Products](index=34&type=section&id=Seasoning%20Products) Seasoning product sales decreased by **17.6%** year-on-year to **RMB34.2 millions**, but gross profit margin rose by **0.9 percentage points** to **36.5%**; the sales decline resulted from the Group's strategic adjustment to focus on core and profitable products, along with price, customer, and channel adjustments - Seasoning product sales amounted to approximately **RMB34.2 millions**, a year-on-year decrease of approximately **17.6%**[93](index=93&type=chunk) - Gross profit margin was **36.5%**, a year-on-year increase of approximately **0.9 percentage points**[93](index=93&type=chunk) - The sales decline was primarily due to the Group's strategic adjustment to focus on core and profitable products, while also reducing the number of product categories[93](index=93&type=chunk) [Candy and Other Products](index=35&type=section&id=Candy%20and%20Other%20Products) Candy and other product sales increased by **0.7%** year-on-year to **RMB30.2 millions**, with gross profit margin rising by **0.2 percentage points** to **20.6%**; the sales growth was mainly driven by increased sales of new rice wine products and improved production costs from economies of scale - Candy and other product sales amounted to approximately **RMB30.2 millions**, a year-on-year increase of approximately **0.7%**[94](index=94&type=chunk) - Gross profit margin was **20.6%**, a year-on-year increase of approximately **0.2 percentage points**[94](index=94&type=chunk) - The increase in sales was mainly due to increased sales of new rice wine products, and gross profit margin also improved with increased sales volume and economies of scale[94](index=94&type=chunk) [Distribution and Selling Expenses](index=35&type=section&id=Distribution%20and%20Selling%20Expenses) Distribution and selling expenses decreased by **4.6%** year-on-year to **RMB64.3 millions**, primarily due to reduced employee bonuses and transportation costs, consistent with the decline in sales revenue and volume during the reporting period - Distribution and selling expenses were approximately **RMB64.3 millions**, a year-on-year decrease of approximately **4.6%**[95](index=95&type=chunk) - The decrease was primarily attributable to reduced employee bonuses and transportation costs, consistent with the decline in sales revenue and volume[95](index=95&type=chunk) [Administrative Expenses](index=35&type=section&id=Administrative%20Expenses) Administrative expenses decreased by **3.2%** year-on-year to **RMB66.5 millions**, mainly due to reduced depreciation of property, plant and equipment and property taxes, resulting from the closure of a production base and full depreciation of some assets - Administrative expenses were approximately **RMB66.5 millions**, a year-on-year decrease of approximately **3.2%**[96](index=96&type=chunk) - The decrease was mainly due to a combined reduction of **RMB2.5 millions** in depreciation of property, plant and equipment and property taxes[96](index=96&type=chunk) [Adjusted EBITDA](index=36&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA, a non-HKFRS measure, provides additional insight into the Group's core operating performance, totaling **RMB70.2 millions** for the reporting period, a **10.9%** year-on-year decrease Reconciliation of Profit for the Period to Adjusted EBITDA (RMB thousands) | Metric | 2025 | 2024 | | :--- | :------- | :------- | | Profit for the period | 21,551 | 32,809 | | Finance income | (3,913) | (6,315) | | Finance costs (excluding other finance costs) | 3,511 | 4,065 | | Income tax | 7,689 | 4,160 | | Depreciation | 40,250 | 42,663 | | Amortisation of intangible assets | 1,035 | 1,195 | | EBITDA | 70,123 | 78,557 | | Add: Share of net loss of associates | 86 | 213 | | **Adjusted EBITDA** | **70,209** | **78,790** | - Adjusted EBITDA decreased by **10.9%** year-on-year[8](index=8&type=chunk) - Adjusted EBITDA is a non-HKFRS performance measure, aiming to eliminate impacts that management believes do not reflect the Group's core operations[97](index=97&type=chunk)[98](index=98&type=chunk) [Strategic Development and Investment Projects](index=37&type=section&id=Strategic%20Development%20and%20Investment%20Projects) The Group has invested in several consumer goods companies with synergistic business operations, but no new investment projects were added during the reporting period; the fair value of investments remained unchanged, contrasting with a fair value loss recognized in the prior year - The Group has invested in several consumer goods companies with synergistic business operations[99](index=99&type=chunk) - No new investment projects were added during the reporting period[99](index=99&type=chunk) - The fair value of the Group's investments remained unchanged during the reporting period (a fair value loss of approximately **RMB1.3 millions** was recognized in the first half of **2024**)[99](index=99&type=chunk) [Product Development and Upgrades](index=37&type=section&id=Product%20Development%20and%20Upgrades) The Group is committed to developing popular, natural, healthy, nutritious, and delicious high-quality products, increasing investment in product innovation, production facilities, and quality inspection equipment; new products are continuously launched across all lines to meet consumer demand for healthy snacks and enhance market position - The Group is committed to developing popular, natural, healthy, nutritious, and delicious high-quality products, and increasing investment in product innovation, production facilities, and quality inspection equipment[100](index=100&type=chunk) - Jelly products will continue to be developed to improve gross profit margin, with innovative and healthy new products launched[100](index=100&type=chunk) - Puffed food products launched "Seaweed Crispy Fruit," which is not fried and contains no trans fats, focusing on expanding the "Potato Chips" and "Qinqin Ring" series[100](index=100&type=chunk) - Seasoning products aim to "make cooking simpler," launching new flavor products and expanding into the catering and household markets[101](index=101&type=chunk) - Other snack products will continue to research and develop new healthy concept snack products, including candy, chocolate, biscuits, baked goods, and rice wine snacks[101](index=101&type=chunk) [Promotion and Marketing](index=38&type=section&id=Promotion%20and%20Marketing) The Group continues to strengthen distribution channels and retail terminal management, increasing retail points, and focusing on promoting key and co-branded products; it actively utilizes social media platforms like WeChat, Weibo, Douyin, Xiaohongshu, and Bilibili for engaging with young consumers and collaborates with strategic investment partners for product promotion - The Group will continue to strengthen the management of its distribution channels and retail terminals, increasing the number of retail outlets[102](index=102&type=chunk) - It will focus on promoting key products and co-branded products, and re-optimize and upgrade the packaging of key products[102](index=102&type=chunk) - It fully utilizes social media platforms such as WeChat, Weibo, Douyin, Xiaohongshu, and Bilibili to effectively interact with young consumer groups[102](index=102&type=chunk) - It continues to collaborate with strategic investment partners to jointly promote products through e-commerce channels, food expos, and trade fairs[102](index=102&type=chunk) [Channel Expansion](index=38&type=section&id=Channel%20Expansion) The Group expanded its distribution network by entering new channels such as snack brand stores, convenience stores, campus stores, and gas stations, partially offsetting reduced traditional channel sales; its e-commerce strategy shifted to high-margin self-produced products, actively partnering with new retailers, while export trade and OEM manufacturing also continued to grow - The Group continues to expand its existing distributor network by extending into new channels such as snack brand stores, convenience stores, campus stores, and gas stations[103](index=103&type=chunk) - Sales through emerging snack chain stores significantly increased, partially offsetting the reduction in sales from traditional channels[103](index=103&type=chunk) - The e-commerce business development strategy is to reduce sales of low-margin products through e-commerce channels and increase the proportion of higher-margin self-produced products[103](index=103&type=chunk) - It actively expanded into export trade and OEM manufacturing, successfully developing new international customers[104](index=104&type=chunk) [Optimization of Production Facilities](index=38&type=section&id=Optimization%20of%20Production%20Facilities) The Group has a clear plan for production facility and equipment development, completing construction and expansion of multiple production bases; during the reporting period, it decided to terminate a construction project in Xiaogan, Hubei Province, recognizing an impairment loss, and continues to invest in automation and technological upgrades to enhance efficiency and product quality - The Group has completed the development and construction of production bases in various regions of China, including expansion projects in Xiantao City (Hubei Province), Xiaogan City (Hubei Province), Jining City (Shandong Province), Meishan City (Sichuan Province), and Quanzhou City (Fujian Province)[105](index=105&type=chunk) - The Group decided to discontinue a construction development project in Xiaogan City, Hubei Province, China, and recognized a one-off impairment loss of **RMB5.4 millions** on construction in progress[106](index=106&type=chunk) - Capital expenditure for improving existing production base projects during the reporting period was approximately **RMB17.4 millions**[106](index=106&type=chunk) - The Group aims to reduce labor costs by continuously enhancing the automation capabilities of its production facilities and introducing world-leading jelly and puffed food production lines[107](index=107&type=chunk) [Future Outlook and Strategies](index=39&type=section&id=Future%20Outlook%20and%20Strategies) Despite market challenges, the Group remains optimistic, focusing on continuous product innovation, channel expansion, production facility optimization, refining internal management, and seeking strategic investment opportunities to drive business growth and create greater shareholder value - Through continuous product innovation to seize new opportunities brought by consumption upgrades, adhering to a multi-category and cost-effective product strategy[108](index=108&type=chunk) - Expanding sales channels, consolidating the existing distribution network, gradually developing and allocating more higher-margin products, and actively exploring new market channels such as snack brand stores and catering channels[112](index=112&type=chunk) - Continuously improving production facilities, enhancing production processes and product quality, improving environmental benefits, and moving towards green production[112](index=112&type=chunk) - Refining internal management processes, strengthening the integration of various software and digital transformation to improve efficiency; investing in talent development and information management systems[112](index=112&type=chunk) - Seeking opportunities to invest in consumer goods companies with rapid development potential and synergistic effects with the Group's business[112](index=112&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) The Group maintains a sound financial position with a net cash position of **RMB277.1 millions** as of June 30, 2025, though it decreased due to repayment of bills payable; the current ratio improved, and capital expenditures primarily funded new production equipment and ongoing factory projects - As of **June 30, 2025**, the Group was in a net cash position of **RMB277.1 millions** (December 31, 2024: **RMB415.1 millions**)[109](index=109&type=chunk) - The decrease in net cash position was primarily due to the repayment of bills payable maturing in the first half of **2025**, resulting in a reduction of **RMB132.3 millions**[109](index=109&type=chunk) - As of **June 30, 2025**, net current assets were **RMB235.4 millions** (December 31, 2024: **RMB182.1 millions**), and the current ratio was **1.7 times** (December 31, 2024: **1.3 times**)[109](index=109&type=chunk) - The Group obtained trade finance facilities totaling **RMB390.0 millions**, of which **RMB100.7 millions** have been utilized[110](index=110&type=chunk) - Capital expenditure for the first half of **2025** was **RMB17.4 millions**, primarily for purchasing new production equipment and ongoing construction projects at several factories[111](index=111&type=chunk) [Commitments and Contingent Liabilities](index=41&type=section&id=Commitments%20and%20Contingent%20Liabilities) As of June 30, 2025, the Group's total contracted but unprovided capital commitments were approximately **RMB20.8 millions**, with other commitments (short-term operating leases) around **RMB0.2 millions**; there were no significant contingent liabilities during the reporting period - As of **June 30, 2025**, total contracted but unprovided capital commitments were approximately **RMB20.8 millions** (December 31, 2024: **RMB26.2 millions**)[113](index=113&type=chunk) - As of **June 30, 2025**, minimum lease payments due in the future under irrevocable short-term operating leases were approximately **RMB0.2 millions** (December 31, 2024: **RMB2.1 millions**)[113](index=113&type=chunk) - As of **June 30, 2025**, and **December 31, 2024**, the Group had no significant contingent liabilities[114](index=114&type=chunk) [Material Investments Held and Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=41&type=section&id=Material%20Investments%20Held%20and%20Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) Except as disclosed in this report, the Group held no other material investments and undertook no material acquisitions or disposals of subsidiaries, associates, or joint ventures during the period - The Group held no other material investments during the period[115](index=115&type=chunk) - There were no material acquisitions or disposals of subsidiaries, associates, or joint ventures during the period[115](index=115&type=chunk) [Pledge of Assets](index=41&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group pledged land use rights and buildings with a net book value of **RMB361.4 millions** as collateral for bank borrowings of **RMB150.1 millions**; additionally, **RMB19.5 millions** in restricted bank deposits were pledged for short-term trade finance - As of **June 30, 2025**, the Group pledged land use rights and buildings with a net book value of **RMB361.4 millions** as collateral for bank borrowings of **RMB150.1 millions**[116](index=116&type=chunk) - As of **June 30, 2025**, the Group also had **RMB100.7 millions** in short-term trade finance, secured by restricted bank deposits of **RMB19.5 millions**[116](index=116&type=chunk) [Human Resources and Management](index=41&type=section&id=Human%20Resources%20and%20Management) As of June 30, 2025, the Group employed approximately **2,400** staff, with total employee benefit expenses increasing due to higher pension and social welfare liabilities; the Group fosters a sense of community, offers competitive compensation and benefits, and provides continuous education and training programs - As of **June 30, 2025**, the Group had approximately **2,400** employees[117](index=117&type=chunk) - Total employee benefit expenses were approximately **RMB99.1 millions**, mainly due to increased pension and other social welfare liabilities for domestic employees in China[117](index=117&type=chunk) - The Group determines employee remuneration based on qualifications, work experience, position, and performance, and provides benefits such as performance bonuses, meal allowances, and free accommodation[117](index=117&type=chunk) - The Group provides various internal and external education and training programs to develop its employees[117](index=117&type=chunk) [Foreign Exchange Risk](index=41&type=section&id=Foreign%20Exchange%20Risk) The Group's functional currency is RMB, with foreign exchange risk primarily arising from assets and liabilities denominated in HKD, USD, and other currencies; a foreign exchange loss of **RMB0.8 millions** was recorded during the review period, and the Group closely monitors exchange rates to mitigate risk - The Group's functional currency is RMB, and foreign exchange risk primarily arises from assets or liabilities denominated in HKD, USD, and other currencies[118](index=118&type=chunk) - During the review period, the Group recorded foreign exchange losses totaling **RMB0.8 millions** arising from cash and cash equivalents denominated in HKD and USD[119](index=119&type=chunk) - The Group closely monitors HKD and USD exchange rate risks to maintain them at an acceptable level, and buys and sells foreign currencies at spot rates when necessary to mitigate risk[119](index=119&type=chunk) [Other Information](index=42&type=section&id=Other%20Information) This chapter provides additional important information beyond financial and operational analysis, including interim dividend policy, directors' and substantial shareholders' interests in securities, share option scheme details, corporate governance code compliance, changes in directors' information, fundraising and listed securities transactions, and the audit committee's review of interim results [Interim Dividend](index=42&type=section&id=Interim%20Dividend) The Board decided not to declare an interim dividend for the six months ended June 30, 2025 - The Board did not declare an interim dividend for the six months ended **June 30, 2025** (June 30, 2024: nil)[120](index=120&type=chunk) [Directors' Interests in Securities](index=43&type=section&id=Directors'%20Interests%20in%20Securities) This section discloses directors' interests and short positions in the Company's shares, underlying shares, or debentures as of June 30, 2025, including interests of controlled corporations, beneficial ownership, and share options Directors' Long Positions in the Company's Shares (June 30, 2025) | Name of Director | Capacity/Nature of interest | Number of shares interested | Number of underlying shares interested (share options) | Approximate percentage of interest in the Company | | :--- | :--- | :--- | :--- | :--- | | Mr. Xu Qingliu | Interest of controlled corporation/Corporate interest | 425,806,219 | — | 56.39% | | Mr. Shi Wenbo | Beneficial owner and founder of discretionary trust/Personal and other interests | 45,760,919 | — | 6.06% | | Mr. Wu Wenxu | Beneficial owner/Personal interest | — | 120,000 | 0.02% | | Mr. Huang Weiliang | Beneficial owner/Personal interest | — | 48,000 | 0.01% | - Interests in underlying shares (unlisted derivatives settled in physical form) are share options granted to directors under the Company's share option scheme[123](index=123&type=chunk) [Interests of Substantial Shareholders and Other Persons in Shares](index=44&type=section&id=Interests%20of%20Substantial%20Shareholders%20and%20Other%20Persons%20in%20Shares) This section lists substantial shareholders and other persons holding **5%** or more disclosable interests or short positions in the Company's shares and underlying shares as of June 30, 2025, including Sure Wonder Limited and Tin Lee Investment Limited Substantial Shareholders' Long Positions in the Company's Shares (June 30, 2025) | Substantial Shareholder | Capacity/Nature of interest | Number of shares interested | Approximate percentage of interest in the Company | | :--- | :--- | :--- | :--- | | Sure Wonder Limited | Beneficial owner/Beneficial interest | 425,806,219 | 56.39% | | Tin Lee Investment Limited | Beneficial owner/Beneficial interest | 45,645,799 | 6.05% | | Hang Seng Bank (Trustee) Limited | Trustee/Other interest | 45,645,799 | 6.05% | - Sure Wonder Limited is wholly owned by **Mr. Xu Qingliu**, the Company's Chairman and Executive Director[125](index=125&type=chunk) - Tin Lee Investment Limited is a wholly-owned subsidiary of Tin Wing Holdings Limited, which is wholly owned by **Hang Seng Bank (Trustee) Limited** as trustee of the Shi Family Trust[125](index=125&type=chunk) [Share Options](index=45&type=section&id=Share%20Options) This section details changes in share options granted under the share option scheme for the six months ended June 30, 2025, including the number of options held by directors and other employees, exercise prices, and exercise periods, noting no fair value of share options recognized in the consolidated statement of profit or loss for the period Details of Share Option Movements (For the six months ended June 30, 2025) | Eligible person | Balance at January 1, 2025 | Cancelled/lapsed during the period | Balance at June 30, 2025 | Exercise price per share (HKD) | Date of grant | Exercise period | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Mr. Huang Weiliang | 48,000 | — | 48,000 | 2.19 | 23/08/2021 | 24/08/2024-23/08/2025 | | Mr. Wu Wenxu | 120,000 | — | 120,000 | 2.19 | 23/08/2021 | 24/08/2024-23/08/2025 | | Other employees | 2,716,000 | (136,000) | 2,580,000 | 2.19 | 23/08/2021 | 24/08/2024-23/08/2025 | | **Total** | **2,884,000** | **(136,000)** | **2,748,000** | | | | - The fair value of share options granted to employees and directors recognized in the consolidated statement of profit or loss for the six months ended **June 30, 2025**, was **zero**[129](index=129&type=chunk) [Corporate Governance Code](index=46&type=section&id=Corporate%20Governance%20Code) The Group has adopted a corporate governance policy referencing Appendix C1 of the Listing Rules and is committed to maintaining high corporate governance standards; the Board confirms compliance with all applicable code provisions for the six months ended June 30, 2025 - The Group has adopted a corporate governance policy with reference to the Corporate Governance Code set out in Appendix C1 of the Listing Rules[130](index=130&type=chunk) - The Board considers that the Company has complied with all applicable code provisions of the Corporate Governance Code for the six months ended **June 30, 2025**[130](index=130&type=chunk) [Compliance with Model Code](index=46&type=section&id=Compliance%20with%20Model%20Code) The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules, and all directors confirmed compliance with its required standards for the six months ended June 30, 2025 - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules[131](index=131&type=chunk) - All Directors confirmed that they have complied with the required standards set out in the Model Code for the six months ended **June 30, 2025**[131](index=131&type=chunk) [Changes in Information of Directors and Chief Executive](index=46&type=section&id=Changes%20in%20Information%20of%20Directors%20and%20Chief%20Executive) No other changes in information of directors and chief executive requiring disclosure under Rule 13.51B(1) of the Listing Rules occurred, apart from those already disclosed in this report - No other information requiring disclosure under Rule **13.51B(1)** of the Listing Rules[132](index=132&type=chunk) [Fund Raising and Use of Proceeds](index=46&type=section&id=Fund%20Raising%20and%20Use%20of%20Proceeds) For the six months ended June 30, 2025, and up to the date of this report, the Company had no unutilized proceeds from fundraising activities carried forward to the current financial year, nor any other fundraising activities - For the six months ended **June 30, 2025**, the Company had no unutilized proceeds from fundraising activities carried forward to the current financial year[133](index=133&type=chunk) - There were no other fundraising activities[133](index=133&type=chunk) [Purchase, Redemption or Sale of Listed Securities](index=46&type=section&id=Purchase%20Redemption%20or%20Sale%20of%20Listed%20Securities) During the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities, nor were any treasury shares sold or transferred - For the six months ended **June 30, 2025**, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities[134](index=134&type=chunk) - No treasury shares of the Company were sold or transferred[134](index=134&type=chunk) [Audit Committee and Review of Interim Results](index=46&type=section&id=Audit%20Committee%20and%20Review%20of%20Interim%20Results) The Company's Audit Committee, comprising three independent non-executive directors, reviewed the Group's unaudited interim results and this report for the six months ended June 30, 2025, recommending their adoption by the Board; the interim financial information was also reviewed by the Company's auditor, Tianzhu Hong Kong Certified Public Accountants Limited - The Company's Audit Committee comprises three independent non-executive directors[135](index=135&type=chunk) - The Audit Committee reviewed the Group's unaudited interim results and this report for the six months ended **June 30, 2025**, and recommended their adoption by the Board[135](index=135&type=chunk) - The unaudited interim financial information was also reviewed by the Company's auditor, **Tianzhu Hong Kong Certified Public Accountants Limited**[135](index=135&type=chunk) [Acknowledgement](index=47&type=section&id=Acknowledgement) The Board, on behalf of the Company, extends its sincere gratitude to all employees for their efforts and dedication during the period - The Board, on behalf of the Company, extends its sincere gratitude to all employees for their efforts and dedication during the period[136](index=136&type=chunk)

Core Viewpoint - Qinqin Food Group is facing a decline in performance, with a 6.0% drop in revenue and a 10.2% decrease in gross profit in the first half of 2025, indicating ongoing challenges in its core business and product innovation [3][15]. Financial Performance - In 2023, Qinqin Food reported revenues of 981.57 million RMB, with a net loss of 2.06 million RMB, following losses of 1.77 million RMB in 2022 and 80.89 million RMB in 2021 [11][12]. - The company achieved a turnaround in 2024, with revenues of 996.50 million RMB and a profit of 21.13 million RMB, primarily due to the cessation of non-operational losses [12][14]. - In the first half of 2025, Qinqin Food's revenue was 529.75 million RMB, a 6.0% decline year-on-year, with a profit of 21.55 million RMB, down 34.31% from the previous year [17][15]. Product Segments - Qinqin Food's core product, jelly, generated 5.31 billion RMB in sales in 2024, accounting for 53.2% of total revenue, but saw a 6.5% decline compared to the previous year [15][18]. - The puffed food segment, including shrimp chips, reported sales of approximately 1.49 billion RMB in the first half of 2025, a 2.9% decrease [22]. - The company has diversified into other product categories, with candy and other products showing a slight revenue increase of 0.7% in the first half of 2025 [22][23]. Investment and Strategy - Since 2019, Qinqin Food has made several investments in various brands, but these have not significantly contributed to revenue growth, leading to financial strain [9][10]. - The company has been criticized for its low R&D spending, with only 6.05 million RMB allocated in 2024, compared to competitors who invest significantly more [23][24]. - Qinqin Food's strategy to transition from a traditional snack company to a health-focused snack solution provider remains a work in progress, with limited success in product differentiation [25].

Summary of Key Points Core Viewpoint - On August 25, nine Hong Kong-listed companies conducted share buybacks, totaling 1.8064 million shares and an aggregate amount of HKD 577 million [1][2]. Group 1: Buyback Details - Tencent Holdings repurchased 895,000 shares for HKD 551 million, with a highest price of HKD 620.00 and a lowest price of HKD 608.50, bringing its total buyback amount for the year to HKD 43.347 billion [1][2]. - Hang Seng Bank repurchased 200,000 shares for HKD 22.697 million, with a highest price of HKD 113.90 and a lowest price of HKD 112.70, totaling HKD 38.606 million for the year [1][2]. - Beisen Holdings repurchased 200,000 shares for HKD 1.5988 million, with a highest price of HKD 8.09 and a lowest price of HKD 7.86, totaling HKD 34.2558 million for the year [1][2]. Group 2: Buyback Rankings - The highest buyback amount on August 25 was from Tencent Holdings at HKD 551 million, followed by Hang Seng Bank at HKD 22.697 million [1][2]. - In terms of buyback volume, Tencent Holdings led with 895,000 shares, followed by Qinqin Food at 320,000 shares and Beisen Holdings at 200,000 shares [1][2]. Group 3: Notable Events - Qinqin Food's buyback on this date marked its first buyback of the year, while Tencent Holdings has conducted multiple buybacks totaling HKD 43.347 billion for the year [2].

Core Viewpoint - The company, Qinqin Foods (01583.HK), announced a share buyback on August 25, 2023, spending HKD 406,000 to repurchase 320,000 shares [1] Group 1 - The total amount spent on the share buyback was HKD 406,000 [1] - The number of shares repurchased in this transaction was 320,000 [1]

Group 1 - The company, Qinqin Foods (01583), announced a share buyback plan [1] - The company will spend HKD 406,300 to repurchase 320,000 shares [1] - The buyback is scheduled for August 25, 2025 [1]

FF305 表格類別： 股票 狀態： 新提交 公司名稱： 親親食品集團（開曼）股份有限公司（於開曼群島註冊成立的有限公司） 呈交日期： 2025年8月25日 如上市發行人的已發行股份或庫存股份出現變動而須根據《香港聯合交易所有限公司（「香港聯交所」）證券上市規則》(「《主板上市規則》」)第13.25A條 / 《香港聯合交易所有限公司GEM證券 上市規則》(「《GEM上市規則》」)第17.27A條作出披露，必須填妥第一章節 。 | 第一章節 | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | 於香港聯交所上市 | 是 | | | 證券代號 (如上市) | 01583 | 說明 | | | | | | A. 已發行股份或庫存股份變動 | | | | | | | | | | 已發行股份（不包括庫存股份）變動 | | 庫存股份變動 | | | | | 事件 | 已發行股份（不包括庫存股份）數 目 | 佔有關事件前的現有已發 行股份（不包括庫存股 份）數目百分比 (註3) | 庫存股份數目 | ...

Core Viewpoint - Qinqin Food's revenue declined by 6.00% to 530 million RMB in the first half of 2025, with net profit dropping by 34.31% to 21.55 million RMB, primarily due to reduced sales in traditional channels, offset by growth in snack food chains, OEM manufacturing, and export sales [2] Revenue Breakdown - The jelly product category, which has the highest revenue share, saw a revenue decrease of 6.78% to 316.37 million RMB [3] - The puffed food category's revenue fell by 3.25% to 149.03 million RMB [3] - The seasoning product category experienced a significant decline of 17.68% to 34.17 million RMB [3] - The candy and other products category recorded a slight increase of 0.75% to 30.18 million RMB, driven by new product sales [5] Reasons for Revenue Changes - The decline in jelly product sales is attributed to channel changes and increased competition from lower-priced products [3][4] - The drop in puffed food revenue is mainly due to weak performance in traditional sales channels [4] - Seasoning product revenue decreased due to strategic adjustments, focusing on core profitable products and reducing product categories [4] Profitability and Strategy - The gross margin for the seasoning product category improved by approximately 0.9 percentage points to 36.5% due to adjustments in pricing, customers, and channels [4] - The company plans to optimize product structure and sales strategies, focusing on new products like "potato chips," "Qinqin Circle," and "seaweed crispy fruit" to stimulate sales and enhance profitability [4]

Core Insights - The company reported a revenue of 530 million yuan for the fiscal year ending June 30, 2025, representing a 6% decline year-on-year [1] - Gross profit was 154 million yuan, down 10.2% compared to the previous year, with a gross margin of 29.1% [1] - Net profit attributable to shareholders was 21.55 million yuan, reflecting a significant decrease of 34.3% year-on-year [1] Business Challenges - The company faces challenges from a reduction in traditional sales channels and intensified competition from emerging snack brands [1] - Sales of jelly products saw the most significant decline, while puffed and seasoning products also experienced a downward trend [1] - Conversely, sales of candy and other products showed a slight increase [1] Strategic Adjustments - The company plans to continue adjusting its product strategy and strengthen brand influence to adapt to market changes [1] - There has been some growth in OEM (Original Equipment Manufacturer) and export businesses, indicating a potential area for future development [1]