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: 欣融國際控股有限公司 呈交日期: 2025年9月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01587 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 2,000,000,000 | HKD | | 0.01 | HKD | | 20,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 2,000,000,000 | HKD | | 0.01 | HKD | | 20,000,000 | 本月底法定/註冊股本 ...

(Incorporated in the Cayman Islands with limited liability) Shineroad International Holdings Limited 欣融國際控股有限公司 （於開曼群島註冊成立之有限公司） （Stock Code 股份代號：1587） NOTIFICATION LETTER 通知信函 Dear Non-Registered Shareholders, Shineroad International Holdings Limited (the "Company") – Notice of publication of Interim Report 2025 (the "Current Corporate Communication") The English and Chinese versions of the Company's Current Corporate Communications are available on the Company's website at www.shineroad.com and the websit ...

Shineroad International Holdings Limited 欣融國際控股有限公司 (Incorporated in the Cayman Islands with limited liability) （於開曼群島註冊成立之有限公司） （Stock Code 股份代號：1587） NOTIFICATION LETTER 通知信函 Dear Registered Shareholders, Shineroad International Holdings Limited (the "Company") – Notice of publication of Interim Report 2025 (the "Current Corporate Communication") The English and Chinese versions of the Company's Current Corporate Communications are now available on the Company's website at www.shineroad.com and the websit ...

Company Information [Board of Directors and Committees](index=3&type=section&id=Board%20of%20Directors%20and%20Committees) This section lists the executive directors, independent non-executive directors, company secretary, authorized representatives, and the composition of the Audit, Remuneration, and Nomination Committees for Xinrong International Holdings Limited - Executive Directors include Mr. Huang Haixiao (Chairman of the Board), Ms. Huang Xinrong (Chief Executive Officer), and Mr. Dai Yihui[7](index=7&type=chunk) - Independent Non-Executive Directors are Mr. Chan Wai Sing, Mr. Chan Ka Kit, and Mr. Meng Yuecheng[7](index=7&type=chunk) - The Audit, Remuneration, and Nomination Committees are all chaired by independent non-executive directors[7](index=7&type=chunk) [Registered and Business Locations](index=3&type=section&id=Registered%20and%20Business%20Locations) The company is registered in the Cayman Islands, with its principal place of business in Central, Hong Kong, and its China head office in Shanghai, also detailing information on its auditor, legal counsel, share registrar, and principal bankers - The registered office is in the Cayman Islands, and the principal place of business in Hong Kong is Room 1603, 16th Floor, China Building, 29 Queen's Road Central, Hong Kong[7](index=7&type=chunk)[8](index=8&type=chunk) - The auditor is Ernst & Young, and the Hong Kong share registrar is Tricor Investor Services Limited[7](index=7&type=chunk)[8](index=8&type=chunk) - The company's stock code is 1587[8](index=8&type=chunk) Management Discussion and Analysis [Business Review](index=4&type=section&id=Business%20Review) Xinrong International Holdings Limited, a leading distributor in the Asian food ingredients and food additives industry, achieved a 6.2% revenue growth to RMB 317.0 million during the review period, but profit decreased by 6.3% year-on-year to RMB 17.7 million, with basic earnings per share remaining at RMB 0.03 - The Group is one of the leading distributors in the Asian food ingredients and food additives industry, distinguished by its excellent R&D capabilities[10](index=10&type=chunk) Key Financial Performance for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 317.0 | 298.6 | +6.2% | | Profit | 17.7 | 18.9 | -6.3% | | Basic Earnings Per Share | 0.03 | 0.03 | Flat | [Regional Operations](index=4&type=section&id=Regional%20Operations) The Group has established long-term partnerships with major global suppliers in China and boasts a solid customer base across dairy, beverages, snack foods, edible oils, and food services, further expanding its market presence and competitive edge through overseas subsidiaries in Vietnam and Thailand - Strong cooperative relationships have been established with major global suppliers such as Nestlé, Mitsubishi, Sensient, and Kerry[11](index=11&type=chunk) - The Group has a diversified customer base in China, covering various food application areas including dairy products, beverages, snack food, edible oil producers, and food service providers[11](index=11&type=chunk) - Overseas subsidiaries established in Ho Chi Minh City, Vietnam, and Bangkok, Thailand, are expected to bring competitive advantages and introduce more local Southeast Asian flavors to the Chinese market[12](index=12&type=chunk) [Outlook and Prospects](index=5&type=section&id=Outlook%20and%20Prospects) Despite global economic uncertainties, the Group is confident in its future prospects, anticipating strong revenue growth, with plans to increase product sales through agency rights, establish an Asia-Pacific Innovation Center, strengthen its own-brand portfolio, and actively pursue strategic investment opportunities - Plans to increase product sales through existing and new agency rights, particularly seeking partnerships with specialty brands in the catering and nutrition and health industries[13](index=13&type=chunk) - The Asia-Pacific Innovation Center, with a total construction area of 40,816.13 square meters, is expected to be operational in early 2026, featuring food solution laboratories, product incubation centers, production lines, logistics, and sales functions[14](index=14&type=chunk) - Will continue to strengthen its own brands and portfolio through self-developed formula products and promising food ingredients, and actively explore potential strategic investment opportunities to create synergistic effects[14](index=14&type=chunk)[16](index=16&type=chunk) [Financial Review](index=6&type=section&id=Financial%20Review) The Group's revenue grew by 6.2% during the review period, driven by strong performance in the fruit product line, but increased cost of sales and market fluctuations led to a slight decrease in gross profit margin, while other income and gains declined due to reduced bank interest and government grants, and both selling and distribution expenses and administrative expenses increased, with finance costs remaining stable, ultimately resulting in a 6.3% year-on-year decrease in profit for the period due to higher income tax expense [Revenue](index=6&type=section&id=Revenue) The Group's revenue for the review period was RMB 317.0 million, a 6.2% increase year-on-year, primarily due to the strong performance of the fruit product line, with food ingredients revenue growing significantly while food additives revenue declined - The Group's revenue increased by 6.2% to RMB 317.0 million, mainly due to the strong performance of the fruit product line[17](index=17&type=chunk) Revenue Composition | Revenue Category | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Food Ingredients | 190,486 | 148,751 | | Food Additives | 126,481 | 149,850 | | **Total Revenue** | **316,967** | **298,601** | [Cost of Sales, Gross Profit, and Gross Profit Margin](index=6&type=section&id=Cost%20of%20Sales,%20Gross%20Profit,%20and%20Gross%20Profit%20Margin) Cost of sales increased by 6.8% to RMB 257.7 million in line with revenue growth, while gross profit rose by RMB 2.0 million to RMB 59.2 million, but the gross profit margin decreased by 0.4 percentage points to 18.7% due to market fluctuations - Cost of sales increased by 6.8% to RMB 257.7 million, consistent with the increase in sales revenue[19](index=19&type=chunk) Gross Profit and Gross Profit Margin Changes | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Cost of Sales | 257.7 | 241.4 | +6.8% | | Gross Profit | 59.2 | 57.2 | +3.5% | | Gross Profit Margin | 18.7% | 19.1% | -0.4 pp | - The decrease in gross profit margin was primarily due to market fluctuations[20](index=20&type=chunk) [Other Income and Gains](index=7&type=section&id=Other%20Income%20and%20Gains) Other income and gains decreased by 50% year-on-year to RMB 0.6 million, mainly due to a reduction in bank interest income and government grants Net Other Income and Gains Analysis | Income Category | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Bank Interest Income | 416 | 659 | -36.9% | | Government Grants | 44 | 420 | -89.5% | | Other | 175 | 133 | +31.6% | | **Total** | **635** | **1,212** | -47.6% | - The decrease in other income and gains was mainly due to reduced bank interest income and government grants[21](index=21&type=chunk) [Selling and Distribution Expenses](index=7&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses increased by 6.3% to RMB 13.6 million, primarily attributable to higher labor costs - Selling and distribution expenses increased by 6.3% to RMB 13.6 million, mainly due to increased labor costs[23](index=23&type=chunk) [Administrative Expenses](index=7&type=section&id=Administrative%20Expenses) Administrative expenses slightly increased by 1.0% to RMB 19.8 million, primarily due to software upgrade fees - Administrative expenses increased by 1.0% to RMB 19.8 million, primarily attributable to software upgrade fees[24](index=24&type=chunk) [Finance Costs](index=7&type=section&id=Finance%20Costs) Finance costs remained stable at RMB 0.3 million during the review period, with no significant changes - Finance costs remained at RMB 0.3 million in both review periods, with no significant changes[25](index=25&type=chunk) [Income Tax Expense](index=8&type=section&id=Income%20Tax%20Expense) Income tax expense increased by RMB 1.0 million to RMB 8.1 million, primarily due to an increase in taxable income Major Components of Income Tax Expense | Tax Category | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | YoY Change | | :--- | :--- | :--- | :--- | | PRC Current Income Tax | 8,430 | 7,693 | +9.6% | | Hong Kong Current Income Tax | 137 | 234 | -41.4% | | Deferred Income Tax Expense | (496) | (799) | -37.9% | | **Total Tax Expense for the Period** | **8,071** | **7,128** | +13.2% | - The increase in income tax expense was mainly due to an increase in taxable income[26](index=26&type=chunk) [Profit for the Period](index=8&type=section&id=Profit%20for%20the%20Period) Considering all factors, the profit for the period decreased by 6.3% year-on-year to RMB 17.7 million, yet the Group maintained a sound liquidity position - Profit for the period decreased by RMB 1.2 million or 6.3% from RMB 18.9 million to RMB 17.7 million[28](index=28&type=chunk) - The Group maintained a sound liquidity position during the review period[28](index=28&type=chunk) [Financial Position](index=8&type=section&id=Financial%20Position) The Group had no significant contingent liabilities at the end of the review period, but capital commitments for buildings significantly decreased, while the capital structure was strengthened by continuous profitability, trade receivables turnover days increased, cash and cash equivalents rose due to increased operating cash flows, and the gearing ratio improved [Contingent Liabilities and Capital Commitments](index=8&type=section&id=Contingent%20Liabilities%20and%20Capital%20Commitments) As of June 30, 2025, the Group had no significant contingent liabilities, and capital commitments for buildings significantly decreased from RMB 53,792 thousand in the same period of 2024 to RMB 67 thousand - As of June 30, 2025, the Group had no significant contingent liabilities[29](index=29&type=chunk) Capital Commitments (Contracted but not Provided For) | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Buildings | 67 | 53,792 | [Capital Structure](index=9&type=section&id=Capital%20Structure) The company's capital structure remained unchanged during the review period, with total capital increasing by RMB 42.8 million to RMB 514.9 million due to continuous profitability - The company's capital structure remained unchanged, with capital increasing by RMB 42.8 million to RMB 514.9 million due to continuous profitability[31](index=31&type=chunk) [Liquidity, Financial Resources, and Capital](index=9&type=section&id=Liquidity,%20Financial%20Resources,%20and%20Capital) Trade receivables turnover days increased to 57 days, mainly due to fragmented orders with non-standard payment terms, while cash and cash equivalents rose by RMB 18.6 million to RMB 203.8 million, attributed to increased operating cash flows, and the gearing ratio improved to 27.6% - Trade receivables turnover days increased from 51 days to 57 days, mainly due to fragmented orders with non-standard payment terms[32](index=32&type=chunk) Liquidity and Debt Position | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 203.8 | 185.2 | +18.6 | | Bank Borrowings | 97.7 | 93.7 | +4.0 | | Gearing Ratio | 27.6% | 29.5% | -1.9 pp | - Total equity balance increased to RMB 514.9 million, attributable to the net profit for the review period[33](index=33&type=chunk) [Treasury Policy and Foreign Exchange Risk](index=9&type=section&id=Treasury%20Policy%20and%20Foreign%20Exchange%20Risk) The Group adopts a prudent financial management approach, maintaining a sound liquidity position and mitigating credit risk through continuous credit assessment, currently without a foreign currency hedging policy but monitoring foreign currency risk and considering hedging when necessary - The Group adopts a prudent financial management approach, maintaining a sound liquidity position and is committed to mitigating credit risk[34](index=34&type=chunk) - The Group's operations are primarily denominated in RMB, with foreign currency risk mainly arising from purchases of goods in foreign currencies and bank deposits denominated in foreign currencies, and currently has no foreign currency hedging policy[35](index=35&type=chunk) Other Information [Pledge of Assets, Employees, and Remuneration Policy](index=10&type=section&id=Pledge%20of%20Assets,%20Employees,%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had no pledge of assets, while the number of employees increased to 164, and the remuneration policy is based on market terms, job responsibilities, and performance, including a share option scheme and discretionary bonuses - As of June 30, 2025, the Group had no pledge of assets[36](index=36&type=chunk) - The number of employees in the Group increased to 164 (December 31, 2024: 155)[37](index=37&type=chunk) - The remuneration policy is determined with reference to market terms, job responsibilities, and performance, and a share option scheme is adopted, with local employees entitled to discretionary bonuses[37](index=37&type=chunk) [Events After Reporting Period](index=10&type=section&id=Events%20After%20Reporting%20Period) The Group had no significant events after the review period up to the date of approval of the interim financial statements - No significant events occurred in the Group after the review period up to the date of approval of the unaudited condensed consolidated interim financial statements[38](index=38&type=chunk) [Directors' and Chief Executive's Interests](index=11&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests) As of June 30, 2025, Mr. Huang Haixiao, Chairman of the Board, held a 75% equity interest in the company through a controlled corporation, with no other directors or chief executives holding disclosable interests or short positions in shares or underlying shares Directors' Long Positions in Shares | Director's Name | Capacity/Nature | Number of Shares Interested | Percentage of Interest | | :--- | :--- | :--- | :--- | | Mr. Huang Haixiao | Interest in controlled corporation | 510,000,000 | 75% | - Mr. Huang Haixiao beneficially owns the entire issued share capital of Haicheng Limited, which in turn beneficially owns the entire issued share capital of Xinrong Group Limited, and is therefore deemed to have an interest in the 510,000,000 shares held by Xinrong Group[40](index=40&type=chunk) [Major Shareholders' Interests](index=12&type=section&id=Major%20Shareholders'%20Interests) As of June 30, 2025, major shareholders Haicheng Limited, Xinrong Group Limited, and Ms. Chen Dongying, spouse of Mr. Huang Haixiao, each held a 75% equity interest in the company Major Shareholders' Long Positions in Shares | Name/Company Name | Capacity/Nature of Interest | Number of Shares Interested | Percentage of Interest | | :--- | :--- | :--- | :--- | | Haicheng | Interest in controlled corporation | 510,000,000 | 75% | | Xinrong Group | Beneficial owner | 510,000,000 | 75% | | Ms. Chen Dongying | Spouse's interest | 510,000,000 | 75% | - Ms. Chen Dongying is the spouse of Mr. Huang Haixiao and is therefore deemed to have an interest in the 510,000,000 shares owned or deemed to be owned by Mr. Huang Haixiao[43](index=43&type=chunk) [Share Option Scheme](index=12&type=section&id=Share%20Option%20Scheme) The company adopted a share option scheme in 2018 to incentivize eligible participants, with no share options granted, exercised, cancelled, or lapsed during the period from January 1 to June 30, 2025, and a total of 68,000,000 share options, representing 10% of the issued shares, remaining available for grant as of June 30, 2025 - The share option scheme was approved and adopted on May 31, 2018, to incentivize and reward eligible participants for their contributions to the Group[44](index=44&type=chunk) - No share options were granted, exercised, cancelled, or lapsed during the period from January 1, 2025, to June 30, 2025[45](index=45&type=chunk) - As of June 30, 2025, the total number of share options available for grant under the share option scheme was 68,000,000, representing 10% of the issued shares[45](index=45&type=chunk) [Material Investments](index=13&type=section&id=Material%20Investments) The Group holds an 8.59% equity interest in Tianye Innovation Co., Ltd., a company engaged in agricultural food cultivation, processing, and sales, with an investment cost of RMB 78.8 million, valued at RMB 106.6 million at the end of the review period, representing approximately 15.0% of the Group's total assets, and while Tianye Innovation is listed on the Beijing Stock Exchange and the Group is optimistic about its prospects, no profit or loss was generated, nor were any dividends received during the review period - The Group holds 28,125,200 shares in Tianye Innovation Co., Ltd., representing approximately 8.59% of its equity, with an investment cost of RMB 78.8 million[46](index=46&type=chunk) - As of June 30, 2025, the Group's investment in Tianye Innovation, an associate, was RMB 106.6 million, representing approximately 15.0% of the Group's total assets[46](index=46&type=chunk) - Tianye Innovation was delisted from the National Equities Exchange and Quotations and transferred to the Beijing Stock Exchange for listing, with no profit or loss generated and no dividends received during the review period[46](index=46&type=chunk) [Future Plans and Acquisitions/Disposals](index=13&type=section&id=Future%20Plans%20and%20Acquisitions/Disposals) The Group currently has no other future plans regarding material investments and capital assets, and no material acquisitions or disposals of subsidiaries, associates, and joint ventures occurred during the review period - The Group has no other plans regarding material investments and capital assets[47](index=47&type=chunk) - No material acquisitions or disposals of subsidiaries, associates, and joint ventures occurred in the Group during the review period[48](index=48&type=chunk) [Dealings in Listed Securities](index=14&type=section&id=Dealings%20in%20Listed%20Securities) Neither the company nor any of its subsidiaries purchased, sold, or redeemed any listed securities during the review period - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the review period[49](index=49&type=chunk) [Corporate Governance](index=14&type=section&id=Corporate%20Governance) The company is committed to maintaining high standards of corporate governance and confirms compliance with all code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules during the review period, with all directors also confirming compliance with the Model Code for Securities Transactions by Directors - The company has complied with all code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules[50](index=50&type=chunk) - All directors have confirmed compliance with the Model Code for Securities Transactions by Directors set out in Appendix C3 of the Listing Rules during the review period[51](index=51&type=chunk) [Dividends](index=14&type=section&id=Dividends) The Board of Directors, after careful consideration of the Group's operating results, financial position, and capital requirements, does not recommend the payment of any dividends for the review period - The Board of Directors does not recommend the payment of any dividends for the review period[52](index=52&type=chunk) [Audit Committee](index=14&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, has reviewed the Group's interim results, accounting principles, and practices for the review period, and discussed audit, internal control, risk management, and financial reporting matters, confirming that the interim results comply with all applicable accounting standards and Listing Rules - The Audit Committee, comprising three independent non-executive directors, has reviewed the Group's interim results and the accounting principles and practices adopted for the review period[53](index=53&type=chunk) - The Audit Committee believes that the interim results have complied with all applicable accounting standards and Listing Rules[54](index=54&type=chunk) Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income [Profit or Loss Statement Overview](index=15&type=section&id=Profit%20or%20Loss%20Statement%20Overview) The Group achieved revenue of RMB 317.0 million and gross profit of RMB 59.2 million in the first half of 2025, with profit before tax from continuing operations at RMB 25.8 million, income tax expense of RMB 8.1 million, resulting in a profit for the year from continuing operations of RMB 17.7 million, a decrease from the prior year Condensed Consolidated Interim Statement of Profit or Loss Summary | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 316,967 | 298,601 | | Cost of Sales | (257,743) | (241,432) | | Gross Profit | 59,224 | 57,169 | | Other Income and Gains, Net | 635 | 1,212 | | Selling and Distribution Expenses | (13,598) | (12,782) | | Administrative Expenses | (19,843) | (19,598) | | Profit Before Tax from Continuing Operations | 25,765 | 26,067 | | Income Tax Expense | (8,071) | (7,128) | | **Profit for the Year from Continuing Operations** | **17,694** | **18,939** | [Other Comprehensive Income and Earnings Per Share](index=16&type=section&id=Other%20Comprehensive%20Income%20and%20Earnings%20Per%20Share) The Group's basic and diluted earnings per share for the first half of 2025 remained at RMB 0.03, consistent with the prior year, while net other comprehensive income for the period was a negative RMB 1,709 thousand, leading to a total comprehensive income of RMB 15,985 thousand, lower than the prior year Earnings Per Share and Comprehensive Income | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Basic and Diluted Earnings Per Share Attributable to Owners of the Parent (RMB) | 0.03 | 0.03 | | Other Comprehensive Income for the Period, Net of Tax | (1,709) | (552) | | **Total Comprehensive Income for the Period** | **15,985** | **18,387** | - Net other comprehensive income was primarily affected by exchange differences on translating financial statements into the presentation currency[58](index=58&type=chunk) Condensed Consolidated Interim Statement of Financial Position [Assets Overview](index=17&type=section&id=Assets%20Overview) As of June 30, 2025, the Group's total non-current assets amounted to RMB 339.3 million, and total current assets were RMB 372.0 million, with trade receivables significantly decreasing while cash and cash equivalents increased Assets Position Summary | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Non-Current Assets | 339,258 | 336,968 | | Total Current Assets | 372,025 | 370,554 | | Property, Plant and Equipment | 167,071 | 163,817 | | Trade Receivables | 74,153 | 101,562 | | Cash and Cash Equivalents | 203,826 | 185,175 | - Trade receivables decreased from RMB 101,562 thousand as of December 31, 2024, to RMB 74,153 thousand as of June 30, 2025[60](index=60&type=chunk) - Cash and cash equivalents increased by RMB 18.6 million, reaching RMB 203.8 million[60](index=60&type=chunk) [Liabilities and Equity Overview](index=17&type=section&id=Liabilities%20and%20Equity%20Overview) As of June 30, 2025, the Group's total current liabilities were RMB 127.6 million, and total non-current liabilities were RMB 68.8 million, with total equity increasing to RMB 514.9 million, primarily due to the net profit for the period Liabilities and Equity Position Summary | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Current Liabilities | 127,580 | 143,932 | | Total Non-Current Liabilities | 68,755 | 64,627 | | **Net Assets (Total Equity)** | **514,948** | **498,963** | - Total current liabilities decreased by RMB 16.3 million, mainly due to a decrease in other payables and accrued expenses[60](index=60&type=chunk) - Total equity increased by RMB 16.0 million, attributable to the net profit for the review period[60](index=60&type=chunk) Condensed Consolidated Interim Statement of Changes in Equity [Equity Changes Overview](index=18&type=section&id=Equity%20Changes%20Overview) For the six months ended June 30, 2025, the Group's total equity increased from RMB 499.0 million at the beginning of the period to RMB 514.9 million, primarily driven by a profit of RMB 17.7 million for the period, partially offset by negative exchange differences of RMB 1.7 million, while a final dividend of RMB 9.3 million was declared in the corresponding period of 2024 Equity Changes Summary | Indicator | January 1, 2025 (RMB thousand) | June 30, 2025 (RMB thousand) | | :--- | :--- | :--- | | Total Equity | 498,963 | 514,948 | | Profit for the Period | — | 17,694 | | Exchange Differences | — | (1,709) | - In the first half of 2024, the Group declared a final dividend of RMB 9,288 thousand[63](index=63&type=chunk) Condensed Consolidated Interim Statement of Cash Flows [Cash Flows from Operating Activities](index=20&type=section&id=Cash%20Flows%20from%20Operating%20Activities) The Group's net cash flows from operating activities for the first half of 2025 were RMB 20.4 million, a significant decrease from RMB 56.4 million in the prior year, primarily due to an increase in prepayments and other receivables and a decrease in other payables Cash Flows from Operating Activities Summary | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit Before Tax | 25,765 | 26,067 | | Decrease in Trade Receivables | 27,548 | 19,061 | | Increase in Prepayments, Other Receivables and Other Assets | (14,362) | (10,085) | | (Decrease)/Increase in Other Payables and Accrued Expenses | (12,755) | 24,774 | | **Net Cash Flows from Operating Activities** | **20,426** | **56,444** | - Net cash flows from operating activities significantly decreased year-on-year, mainly affected by changes in working capital[66](index=66&type=chunk) [Cash Flows from Investing Activities](index=21&type=section&id=Cash%20Flows%20from%20Investing%20Activities) The Group's net cash flows used in investing activities for the first half of 2025 were RMB 2.0 million, a significant reduction from RMB 58.5 million in the prior year, primarily due to a substantial decrease in expenditure on the purchase of property, plant and equipment Cash Flows from Investing Activities Summary | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Purchase of Property, Plant and Equipment | (1,985) | (58,780) | | **Net Cash Flows Used in Investing Activities** | **(1,980)** | **(58,471)** | - Expenditure on the purchase of property, plant and equipment significantly decreased from RMB 58,780 thousand in the prior year to RMB 1,985 thousand[68](index=68&type=chunk) [Cash Flows from Financing Activities](index=21&type=section&id=Cash%20Flows%20from%20Financing%20Activities) The Group's net cash flows from financing activities for the first half of 2025 were RMB 1.9 million, a significant decrease from RMB 21.6 million in the prior year, primarily due to reduced new bank loans and no dividends paid in the current period Cash Flows from Financing Activities Summary | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | New Bank Loans | 30,000 | 52,865 | | Repayment of Bank Loans | (25,979) | (20,000) | | Dividends Paid | — | (9,288) | | **Net Cash Flows from Financing Activities** | **1,906** | **21,608** | - No dividends were paid in the current period, whereas RMB 9,288 thousand in dividends were paid in the prior year[68](index=68&type=chunk) [Cash and Cash Equivalents at End of Period](index=21&type=section&id=Cash%20and%20Cash%20Equivalents%20at%20End%20of%20Period) As of June 30, 2025, the Group's net increase in cash and cash equivalents was RMB 20.4 million, bringing the period-end balance to RMB 203.8 million Cash and Cash Equivalents at End of Period | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Increase in Cash and Cash Equivalents | 20,352 | 19,581 | | Cash and Cash Equivalents at End of Period | 203,826 | 176,536 | Notes to the Condensed Consolidated Interim Financial Statements [Company Information and Basis of Preparation](index=22&type=section&id=Company%20Information%20and%20Basis%20of%20Preparation) This note describes Xinrong International Holdings Limited as an investment holding company whose subsidiaries are primarily engaged in the distribution of food ingredients and food additives, with the condensed consolidated interim financial statements prepared in accordance with HKAS 34 and consistent with the accounting policies applied in the prior year's annual financial statements, with the adoption of the revised HKFRS 21 having no impact on the Group's financial information - The Group is principally engaged in the distribution of food ingredients and food additives[69](index=69&type=chunk) - The condensed consolidated interim financial statements are prepared in accordance with HKAS 34 Interim Financial Reporting and are consistent with those applied in the annual consolidated financial statements for the year ended December 31, 2024[70](index=70&type=chunk)[71](index=71&type=chunk) - The revised HKFRS 21 (Lack of Exchangeability) was adopted for the first time this year, but it had no impact on the interim condensed consolidated financial information as all the Group's transaction currencies are exchangeable[72](index=72&type=chunk)[73](index=73&type=chunk) [Operating Segment Information](index=23&type=section&id=Operating%20Segment%20Information) The Group's primary business is the distribution of food ingredients and food additives, which is considered a single reportable segment by management, and no geographical information is presented as over 95% of revenue and non-current assets are located in Mainland China, with sales to a single major customer accounting for a significant portion of continuing operations revenue - The Group operates one business unit based on its products and has one reportable segment, namely food additives distribution[74](index=74&type=chunk) - No geographical information is presented as all the Group's revenue is derived from the distribution of food ingredients and food additives in Mainland China, and over 95% of identifiable non-current assets are located in Mainland China[75](index=75&type=chunk) - For the six months ended June 30, 2025, sales to a single customer accounted for approximately RMB 28,812 thousand of the revenue from continuing operations[76](index=76&type=chunk) [Revenue, Other Income and Net Gains](index=23&type=section&id=Revenue,%20Other%20Income%20and%20Net%20Gains) The Group's total revenue from customer contracts was RMB 317.0 million, with food ingredients revenue significantly increasing while food additives revenue decreased, and Mainland China remains the primary market with minor contributions from Thailand and Vietnam, while other income and net gains declined due to reduced government grants and bank interest income Revenue Disaggregation Information | Segment | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Food Ingredients | 190,486 | 148,751 | | Food Additives | 126,481 | 149,850 | | **Total** | **316,967** | **298,601** | Revenue by Geographical Market | Market Region | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Mainland China | 301,519 | 287,653 | | Thailand | 6,376 | 7,012 | | Vietnam | 9,072 | 3,936 | Net Other Income and Gains | Income Category | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Government Grants | 44 | 420 | | Bank Interest Income | 416 | 659 | | **Total** | **635** | **1,212** | [Profit Before Tax from Continuing Operations](index=25&type=section&id=Profit%20Before%20Tax%20from%20Continuing%20Operations) The Group's profit before tax is derived after deducting various expenses including cost of inventories sold, employee benefit expenses, depreciation, amortization, research and development costs, auditor's remuneration, and travel expenses, with employee benefit expenses increasing while research and development costs and net exchange differences decreased Profit Before Tax Adjustment Items | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of Inventories Sold | 257,743 | 241,432 | | Employee Benefit Expenses | 23,074 | 20,789 | | Research and Development Costs | 1,368 | 1,810 | | Auditor's Remuneration | 399 | 78 | | Net Exchange Differences | 246 | 1,462 | | Bank Interest Income | (416) | (659) | - Employee benefit expenses (excluding directors' and chief executive's emoluments) increased from RMB 20,789 thousand to RMB 23,074 thousand[79](index=79&type=chunk) - Research and development costs decreased from RMB 1,810 thousand to RMB 1,368 thousand[79](index=79&type=chunk) [Income Tax Expense](index=26&type=section&id=Income%20Tax%20Expense) The Group's total income tax expense was RMB 8,071 thousand, primarily comprising PRC current income tax, with PRC subsidiaries accruing income tax at a statutory rate of 25% and Hong Kong subsidiaries subject to a two-tiered profits tax rate Major Components of Income Tax Expense | Tax Category | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | PRC Current Income Tax | 8,430 | 7,693 | | Hong Kong Current Income Tax | 137 | 234 | | Deferred Income Tax Expense | (496) | (799) | | **Total Tax Expense for the Period** | **8,071** | **7,128** | - PRC subsidiaries accrue PRC current income tax provision at a statutory tax rate of 25%[80](index=80&type=chunk) - Hong Kong subsidiaries are taxed at 8.25% on the first HKD 2,000,000 of assessable profits and 16.5% on the remaining assessable profits[80](index=80&type=chunk) [Dividends](index=26&type=section&id=Dividends) The Board of Directors declared a final dividend of HKD 2.25 cents (approximately RMB 2.05 cents) per ordinary share on March 27, 2025, totaling approximately RMB 13,952 thousand, an increase from the prior year Declared Dividends | Dividend Type | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Final Declared — HKD 2.25 cents (approx. RMB 2.05 cents) per ordinary share | 13,952 | 9,288 | - The final dividend declared in 2025 increased from HKD 1.50 cents to HKD 2.25 cents per share compared to 2024[81](index=81&type=chunk) [Earnings Per Share](index=27&type=section&id=Earnings%20Per%20Share) The Group's basic and diluted earnings per share for the first half of 2025 both remained at RMB 0.03, consistent with the prior year, calculated based on profit attributable to owners of the parent and a weighted average of 680,000,000 ordinary shares in issue, with no potential dilutive ordinary shares in issue Basic and Diluted Earnings Per Share Calculation | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit Attributable to Owners of the Parent Used for Basic and Diluted EPS Calculation | 17,694 | 18,939 | | Weighted Average Number of Ordinary Shares in Issue Used for Basic EPS Calculation | 680,000,000 | 680,000,000 | | **Basic Earnings Per Share (RMB)** | **0.03** | **0.03** | | **Diluted Earnings Per Share (RMB)** | **0.03** | **0.03** | - The Group had no potential dilutive ordinary shares in issue for the six months ended June 30, 2025, and 2024[83](index=83&type=chunk) [Property, Plant and Equipment](index=28&type=section&id=Property,%20Plant%20and%20Equipment) As of June 30, 2025, the net book value of property, plant and equipment increased to RMB 167.1 million, with additions of RMB 3.4 million during the period, primarily concentrated in machinery, motor vehicles, and construction in progress Net Book Value of Property, Plant and Equipment | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Book Value | 167,071 | 163,817 | Additions for the Period | Item | H1 2025 Additions (RMB thousand) | | :--- | :--- | | Machinery | 517 | | Motor Vehicles | 666 | | Office Equipment | 70 | | Construction in Progress | 2,103 | | **Total** | **3,356** | [Inventories](index=30&type=section&id=Inventories) As of June 30, 2025, the Group's total inventories (net of provision) amounted to RMB 51.2 million, a slight increase from December 31, 2024, with food ingredients inventories increasing while food additives inventories decreased Inventories Composition | Inventory Category | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Food Ingredients | 27,935 | 21,884 | | Food Additives | 23,492 | 29,120 | | Provision for Inventories | (209) | (249) | | **Total** | **51,218** | **50,755** | [Trade Receivables](index=30&type=section&id=Trade%20Receivables) As of June 30, 2025, the Group's total trade receivables (net of impairment) were RMB 74.2 million, a significant decrease from December 31, 2024, with the vast majority of receivables aged within 3 months, and the Group maintains strict control over credit risk Total Trade Receivables | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables | 85,879 | 113,373 | | Impairment | (11,726) | (11,811) | | **Total** | **74,153** | **101,562** | Trade Receivables Ageing Analysis | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 3 Months | 73,762 | 99,558 | | 3 to 6 Months | 391 | 2,004 | - The Group strives to maintain strict control over outstanding receivables to minimize credit risk and has no significant concentration of credit risk[87](index=87&type=chunk) [Cash and Cash Equivalents and Pledged Deposits](index=31&type=section&id=Cash%20and%20Cash%20Equivalents%20and%20Pledged%20Deposits) As of June 30, 2025, the Group's cash and bank balances were RMB 247.0 million, and after deducting pledged time deposits and non-pledged time deposits with original maturity over one year, cash and cash equivalents amounted to RMB 203.8 million, with the Group holding foreign currency balances in USD, HKD, VND, and THB, and monitoring foreign exchange risk Cash and Cash Equivalents Composition | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Cash and Bank Balances | 247,026 | 232,971 | | Less: Pledged Time Deposits | (13,200) | (17,796) | | Less: Non-Pledged Time Deposits with Original Maturity Over One Year at Purchase | (30,000) | (30,000) | | **Cash and Cash Equivalents** | **203,826** | **185,175** | - The Group's cash and bank balances are denominated in USD, HKD, VND, and THB[88](index=88&type=chunk) - RMB is convertible into other currencies through banks authorized to conduct foreign exchange business, and the Group monitors foreign currency risk[89](index=89&type=chunk) [Trade Payables and Bills Payable](index=32&type=section&id=Trade%20Payables%20and%20Bills%20Payable) As of June 30, 2025, total trade payables and bills payable amounted to RMB 27.9 million, all due within 3 months, which are non-interest bearing and typically settled within 7 to 90 days Trade Payables and Bills Payable Ageing Analysis | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 3 Months | 27,928 | 28,988 | - Trade payables are non-interest bearing and generally settled within 7 to 90 days[91](index=91&type=chunk) [Share Capital](index=32&type=section&id=Share%20Capital) The company's authorized share capital consists of 2,000,000,000 shares with a par value of HKD 0.01 each, and its issued and fully paid share capital comprises 680,000,000 shares with a par value of HKD 0.01 each, equivalent to RMB 5,681 thousand, remaining unchanged from the prior year Share Capital Composition | Share Capital Type | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Authorized Share Capital (2,000,000,000 shares) | 16,708 | 16,708 | | Issued and Fully Paid Share Capital (680,000,000 shares) | 5,681 | 5,681 | [Commitments](index=32&type=section&id=Commitments) As of June 30, 2025, the Group's capital commitments for buildings, contracted but not provided for, amounted to RMB 67 thousand, a significant decrease from RMB 6,429 thousand as of December 31, 2024 Capital Commitments (Contracted but not Provided For) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Buildings | 67 | 6,429 | [Related Party Disclosures](index=33&type=section&id=Related%20Party%20Disclosures) The Group engaged in various transactions with related parties, including sales to and purchases from entities controlled by the controlling shareholder, as well as purchases from an associate, with key management personnel's remuneration remaining stable and no arrangements for directors or chief executives to waive emoluments Summary of Related Party Transactions | Transaction Type | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Sales to Related Parties | 9,471 | 10,615 | | Purchases from Related Parties | 7,195 | 15,390 | | Purchases from an Associate | 4,997 | 1,485 | | Rental Expenses (Entities Controlled by Controlling Shareholder) | 163 | 108 | | Rental Expenses (Mr. Huang Haixiao) | 320 | 320 | Outstanding Balances with Related Parties | Balance Type | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Amounts Payable to Related Parties | 4,525 | 5,494 | | Amounts Receivable from Related Parties | 1,035 | 1,151 | Key Management Personnel Remuneration | Remuneration Type | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Salaries, Allowances and Benefits in Kind | 2,740 | 2,727 | | Contributions to Pension Schemes | 260 | 256 | | **Total** | **3,000** | **2,983** |

Core Viewpoint - Zhongrui Co., Ltd. (301587.SZ) emphasizes its commitment to exploring market potential in downstream sectors and aims to deliver strong performance to investors [1] Group 1: Company Applications - The company's products are applicable in various fields including new energy vehicles, power tools, consumer electronics, smart home devices, and energy storage [1] Group 2: Business Strategy - The company plans to continue its operational efforts to tap into the market potential of downstream customers [1]

Core Viewpoint - Xinrong International reported a revenue increase in the first half of 2025, but faced pressure on profitability, raising concerns among investors [1][3]. Group 1: Financial Performance - The company achieved revenue of approximately 317 million RMB, a year-on-year increase of 6.2%, while net profit attributable to shareholders decreased from 18.9 million RMB to 17.69 million RMB, a decline of 6.3% [1][3]. - Gross margin fell from approximately 19% to 18.68%, indicating pressure on cost control [3]. - Basic earnings per share remained at 0.03 RMB, unchanged from the previous year, suggesting room for improvement in operational efficiency despite revenue growth [3]. - Current ratio improved from 2.57 to 2.92, and quick ratio increased from 2.22 to 2.51, reflecting strong short-term solvency [3]. - Return on equity dropped significantly from 9.08% to 3.49%, and return on total assets decreased from 6.71% to 2.49%, raising concerns about key profitability metrics [3]. Group 2: International Expansion Strategy - The company has established overseas subsidiaries in Ho Chi Minh City, Vietnam, and Bangkok, Thailand, aiming to leverage scale and introduce local flavors to the Chinese market [4]. - A planned Asia-Pacific Innovation Center with a total area of 40,816.13 square meters is expected to be operational by early 2026, emphasizing the company's focus on enhancing R&D capabilities [4]. - Fixed assets increased from 197 million RMB to 200 million RMB, and long-term debt rose from 63.38 million RMB to 66.80 million RMB, indicating additional cost pressures from overseas expansion [4]. Group 3: Industry Competition and Future Outlook - The food ingredients and additives industry is becoming increasingly competitive, presenting various challenges for the company [5]. - Accounts receivable conversion cycle remained at 51 days, while accounts payable conversion cycle was low at 16 days, indicating efficiency in supply chain management but limited bargaining power with suppliers [5]. - Inventory levels slightly increased from 50.76 million RMB to 51.22 million RMB, showing stable inventory management [5]. - Cash and cash equivalents rose from 203 million RMB to 217 million RMB, providing sufficient liquidity for operations and investments [5]. - The company plans to increase product sales through existing and new agency rights, particularly targeting the food service and health nutrition sectors [5]. - The company aims to strengthen its own brand and product mix through self-developed formulations and potential acquisitions of quality target businesses to create synergies [5]. - Despite confidence in future prospects, the company faces the critical challenge of improving profitability while maintaining revenue growth amid global economic uncertainties [5].

Core Viewpoint - Xinrong International (01587) reported a revenue of 317 million yuan for the six months ending June 30, 2025, representing a year-on-year growth of 6.2% [1] - The profit attributable to the company's shareholders was 17.694 million yuan, a decline of 6.6% compared to the previous year [1] - Basic earnings per share stood at 0.03 yuan, indicating a stable performance despite the profit decline [1] Revenue Performance - The increase in revenue is attributed to the strong performance of the fruit product line, aligning with the company's overall strategy [1]

Core Viewpoint - Xinrong International (01587) reported a revenue of 317 million RMB for the six months ending June 30, 2025, representing a year-on-year growth of 6.2% [1] - The profit attributable to the owners of the parent company was 17.694 million RMB, a decrease of 6.6% year-on-year, with basic earnings per share of 0.03 RMB [1] - The increase in revenue is attributed to the strong performance of the fruit product line, aligning with the company's overall strategy [1] Financial Performance - Revenue for the period reached 317 million RMB, marking a 6.2% increase compared to the previous year [1] - Profit attributable to the parent company's owners was 17.694 million RMB, reflecting a 6.6% decline year-on-year [1] - Basic earnings per share stood at 0.03 RMB [1] Strategic Insights - The growth in revenue is primarily driven by the robust performance of the fruit product line [1] - This performance is consistent with the company's overall strategic direction [1]

Core Viewpoint - Xinrong International (01587.HK) reported a revenue of RMB 317 million for the six months ending June 30, 2025, representing a year-on-year increase of 6.2% [1] - The company's profit attributable to equity holders for the same period was RMB 17.7 million, a decrease of 6.3% compared to the same period in 2024 [1] - The board of directors does not recommend the payment of an interim dividend for the six months ending June 30, 2025, consistent with the previous year [1] Financial Performance - Revenue for the six months ending June 30, 2025, was RMB 317 million, up 6.2% year-on-year [1] - Profit attributable to equity holders was RMB 17.7 million, down 6.3% from the same period in 2024 [1] - Basic and diluted earnings per share remained at RMB 0.03, unchanged from June 30, 2024 [1] Strategic Direction - The company aims to establish long-term strategic alliances with clients, focusing on becoming the most reliable partner in the food industry [1] - Xinrong International has built strong relationships with global suppliers, including Nestlé from Switzerland, Mitsubishi from Japan, Sensient from the USA, and Kerry from Ireland, with partnerships spanning several decades [1]

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) The company's financial performance for the six months ended June 30, 2025, shows revenue growth but a decline in profit attributable to owners of the parent Financial Highlights for the Six Months Ended June 30, 2025 | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Revenue | RMB 317.0 million | RMB 298.6 million | +6.2% | | Gross Profit | RMB 59.2 million | RMB 57.2 million | +3.5% | | Profit Attributable to Owners of the Parent | RMB 17.7 million | RMB 18.9 million | -6.3% | | Basic and Diluted Earnings Per Share | RMB 0.03 | RMB 0.03 | Flat | | Interim Dividend | Not Recommended | Zero | N/A | [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) This section presents the condensed consolidated interim financial statements, including the statement of profit or loss, other comprehensive income, and financial position [Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) During the reporting period, the Group's revenue increased by 6.2% year-over-year to RMB 317 million, but profit attributable to owners of the parent decreased by 6.3% to RMB 17.7 million due to increased cost of sales and reduced other income, with basic earnings per share remaining flat Key Profit or Loss Statement Data | Item (RMB thousands) | 2025 (Unaudited) | 2024 (Unaudited) | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 316,967 | 298,601 | +6.2% | | Gross Profit | 59,224 | 57,169 | +3.5% | | Profit Before Tax from Continuing Operations | 25,765 | 26,067 | -1.2% | | Profit for the Period | 17,694 | 18,939 | -6.6% | | Profit Attributable to Owners of the Parent | 17,694 | 18,939 | -6.6% | - Basic and diluted earnings per share were **RMB 0.03**, flat compared to the same period in 2024[6](index=6&type=chunk) [Condensed Consolidated Interim Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets increased to RMB 711 million and net assets to RMB 515 million, indicating steady asset expansion and a robust financial position with increased net current assets Key Financial Position Statement Data | Item (RMB thousands) | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | Change | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 339,258 | 336,968 | +0.7% | | Total Current Assets | 372,025 | 370,554 | +0.4% | | **Total Assets** | **711,283** | **707,522** | **+0.5%** | | Total Current Liabilities | 127,580 | 143,932 | -11.4% | | Total Non-current Liabilities | 68,755 | 64,627 | +6.4% | | **Net Assets** | **514,948** | **498,963** | **+3.2%** | | **Total Equity** | **514,948** | **498,963** | **+3.2%** | [Notes to the Financial Statements](index=6&type=section&id=Condensed%20Consolidated%20Interim%20Financial%20Statements%20Notes) This section provides detailed explanatory notes to the condensed consolidated interim financial statements, covering accounting policies, segment information, and specific balance sheet items [Company Information, Basis of Preparation and Accounting Policies](index=6&type=section&id=1.%20Company%20Information%2C%20Basis%20of%20Preparation%20and%20Accounting%20Policies) The Group primarily engages in the distribution of food ingredients and additives, with financial statements prepared under Hong Kong Accounting Standards, consistent with prior year policies, and new revised standards adopted without significant impact on current financial data - The Group primarily engages in the distribution of food ingredients and food additives[9](index=9&type=chunk) - The interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34, with accounting policies consistent with those applied in the 2024 annual financial statements[10](index=10&type=chunk)[11](index=11&type=chunk) [Operating Segments, Revenue and Other Income](index=7&type=section&id=3.%20Operating%20Segments%2C%20Revenue%20and%20Other%20Income) The Group operates a single business segment, food additive distribution, with revenue primarily from Mainland China and minor operations in Thailand and Vietnam; food ingredient sales grew strongly year-over-year while food additive sales declined, and other income significantly decreased due to reduced government grants and bank interest Revenue by Product Type (RMB thousands) | Product Type | 2025 H1 | 2024 H1 | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Food Ingredients | 190,486 | 148,751 | +28.1% | | Food Additives | 126,481 | 149,850 | -15.6% | | **Total** | **316,967** | **298,601** | **+6.2%** | Revenue by Geographical Region (RMB thousands) | Geographical Region | 2025 H1 | 2024 H1 | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Mainland China | 301,519 | 287,653 | +4.8% | | Thailand | 6,376 | 7,012 | -9.1% | | Vietnam | 9,072 | 3,936 | +130.5% | - Other income and net gains decreased from **RMB 1.2 million** in the prior period to **RMB 0.6 million**, primarily due to reduced government grants and bank interest income[22](index=22&type=chunk) [Profit, Taxation and Dividends](index=10&type=section&id=5.%20Profit%2C%20Taxation%20and%20Dividends) Profit before tax slightly decreased, mainly impacted by increased cost of sales and employee benefit expenses; income tax expense rose due to higher taxable income, and the Board does not recommend an interim dividend for the six months ended June 30, 2025, though the final dividend for the previous year was declared and paid during the period - Cost of inventories sold increased from **RMB 241 million** to **RMB 258 million**, and employee benefit expenses rose from **RMB 20.8 million** to **RMB 23.1 million**, which are key factors affecting profit[23](index=23&type=chunk) - Total income tax expense for the period was **RMB 8.1 million**, an increase from **RMB 7.1 million** in the same period last year[25](index=25&type=chunk) - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[3](index=3&type=chunk) [Earnings Per Share](index=12&type=section&id=8.%20Earnings%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Parent) Despite a decrease in profit attributable to owners of the parent, basic and diluted earnings per share remained flat at **RMB 0.03** due to an unchanged number of issued shares Earnings Per Share Calculation | Item | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Profit Attributable to Owners of the Parent (RMB thousands) | 17,694 | 18,939 | | Weighted Average Number of Ordinary Shares in Issue | 680,000,000 | 680,000,000 | | Basic and Diluted Earnings Per Share (RMB) | 0.03 | 0.03 | [Assets and Liabilities Items](index=13&type=section&id=9.%20Assets%20and%20Liabilities%20Items) At the end of the reporting period, the Group's net book value of property, plant, and equipment increased, inventory levels remained stable, trade receivables significantly decreased, and cash and cash equivalents increased, indicating good financial liquidity - The net book value of property, plant, and equipment increased from **RMB 164 million** to **RMB 167 million**[33](index=33&type=chunk)[34](index=34&type=chunk) - Trade receivables decreased from **RMB 102 million** to **RMB 74.15 million**, with over **99%** due within 3 months, indicating well-controlled credit risk[35](index=35&type=chunk)[36](index=36&type=chunk) - Cash and cash equivalents increased from **RMB 185 million** to **RMB 204 million**[37](index=37&type=chunk) [Share Capital, Commitments and Related Party Disclosures](index=17&type=section&id=14.%20Share%20Capital%2C%20Commitments%20and%20Related%20Party%20Disclosures) The company's share capital structure remained unchanged, capital commitments primarily for building construction significantly decreased, and related party transactions for sales and purchases occurred during the period but at a reduced scale compared to the prior year - Issued and fully paid share capital remained flat at **680,000,000 shares** with a par value of **HKD 0.01** per share, consistent with year-end figures[40](index=40&type=chunk) - Capital commitments for buildings significantly decreased from **RMB 6.4 million** at the end of last year to **RMB 67 thousand**[41](index=41&type=chunk) - Total transactions with related parties during the period amounted to **RMB 21.8 million**, a decrease from **RMB 27.6 million** in the same period last year[42](index=42&type=chunk) [Management Discussion and Analysis](index=20&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's review of the Group's operational and financial performance, liquidity, and future strategic outlook [Business Review and Outlook](index=20&type=section&id=Business%20Review%20and%20Outlook) As a leading food ingredient and additive distributor in Asia, the Group has established strong partnerships with renowned brands through its R&D capabilities, achieving 6.2% revenue growth but a 6.3% profit decline during the period, with future plans to expand product sales, strengthen private brands, enhance R&D, and advance the Asia Pacific Innovation Center construction - The Group has established strong cooperative relationships with global suppliers such as Nestlé, Mitsubishi, Sensient, and Kerry, as well as numerous well-known domestic food and beverage manufacturers including Coca-Cola, Uni-President, and Nongfu Spring[46](index=46&type=chunk) - Future development plans include increasing product sales, strengthening private brands, enhancing R&D capabilities, and seeking strategic investment opportunities[48](index=48&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk) - The Asia Pacific Innovation Center, currently under construction, is expected to be operational in early 2026, aiming to expand the portfolio of independently developed formulated products, which will benefit the Group's future development[49](index=49&type=chunk) [Financial Review](index=22&type=section&id=Financial%20Review) Revenue growth was primarily driven by strong performance in the fruit product line; gross profit margin slightly decreased to **18.7%** due to market fluctuations; selling and administrative expenses marginally increased due to labor costs and software upgrade fees, resulting in a 6.3% year-over-year decrease in profit for the period - Revenue increased by **6.2%** to **RMB 317 million**, primarily due to strong performance in the fruit product line[52](index=52&type=chunk) - Gross profit margin decreased from **19.1%** to **18.7%**, mainly due to market fluctuations[56](index=56&type=chunk) - Selling and distribution expenses increased by **6.3%**, primarily attributable to increased labor costs; administrative expenses increased by **1.0%**, mainly due to software upgrade fees[59](index=59&type=chunk)[60](index=60&type=chunk) - Under the combined impact, profit for the period decreased by **6.3%** from **RMB 18.9 million** to **RMB 17.7 million**[64](index=64&type=chunk) [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital) The Group maintains a robust financial position with cash and cash equivalents increasing to **RMB 204 million**, a debt-to-asset ratio decreasing from **29.5%** to **27.6%**, and an increase in trade receivables turnover days, while adhering to prudent financial management and treasury policies - Cash and cash equivalents balance increased to **RMB 203.8 million**, primarily attributable to increased operating cash flow[68](index=68&type=chunk) - The debt-to-asset ratio (calculated as debt divided by total assets) decreased from **29.5%** as of December 31, 2024, to **27.6%** as of June 30, 2025[69](index=69&type=chunk) - Trade receivables turnover days increased from **51 days** to **57 days**, primarily due to fragmented orders with non-standard payment terms[67](index=67&type=chunk) [Other Information](index=27&type=section&id=Other%20Information) This section provides additional information including significant investments, share option schemes, corporate governance practices, and details regarding report publication [Significant Investments, Share Option Scheme and Corporate Actions](index=27&type=section&id=Significant%20Investments%2C%20Share%20Option%20Scheme%20and%20Corporate%20Actions) The Group holds a significant investment of approximately **8.59%** equity in Tianye Innovation Co., Ltd., representing about **15.0%** of total assets, with no share options granted or significant acquisitions, disposals, or securities repurchases during the period - The Group holds an **8.59%** equity interest in Tianye Innovation Co., Ltd., with a carrying value of **RMB 106.6 million** as of June 30, 2025, representing approximately **15.0%** of the Group's total assets[76](index=76&type=chunk) - During the review period, the Group neither granted any share options nor purchased, sold, or redeemed any of the Company's listed securities[75](index=75&type=chunk)[79](index=79&type=chunk) [Corporate Governance and Dividends](index=28&type=section&id=Corporate%20Governance%20and%20Dividends) The company complied with all provisions of the Corporate Governance Code during the reporting period, and directors adhered to the Model Code for securities transactions; the Board does not recommend an interim dividend for the six months ended June 30, 2025 - The Company has complied with all code provisions of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules during the review period[80](index=80&type=chunk) - The Board does not recommend the payment of any dividend for the review period[82](index=82&type=chunk) [Audit Committee and Report Publication](index=29&type=section&id=Audit%20Committee%20and%20Report%20Publication) The Audit Committee, comprising three independent non-executive directors, has reviewed these interim results and confirmed their compliance with all applicable accounting standards and Listing Rules; this results announcement and the full interim report will be published on the Stock Exchange and the Company's website - The Audit Committee, comprising three independent non-executive directors, has reviewed the Group's interim results for the review period with management[83](index=83&type=chunk) - This results announcement and the 2025 interim report will be published on the Stock Exchange website and the Company's website[84](index=84&type=chunk)