Group 1 - The Hong Kong gold stocks experienced a high opening but subsequently declined, with notable drops including Tongguan Gold down 8%, China Gold International down over 5%, and Lingbao Gold down 4.4% [1][2] - Recent spot gold prices reached new highs, but there was a slight decline of 0.27% in early Asian trading, falling below $3,550 per ounce [2] - Analysts indicate that after reaching new highs, the risk of a short-term technical correction in gold stocks has significantly increased, urging investors to remain vigilant [2][3] Group 2 - Many gold companies' stock prices have risen far beyond their net profit growth rates, leading to historically high valuation metrics such as P/E ratios, suggesting signs of a bubble [3] - High valuations necessitate either a stock price correction or earnings growth to be absorbed, increasing short-term risks [3] - The long-term drivers for gold prices, including central bank purchases, de-dollarization, and geopolitical risks, remain strong, indicating a future dynamic between short-term volatility and long-term trends [3]

Core Viewpoint - The Hong Kong gold stocks have shown a trend of high opening and low closing, with significant declines in various companies' stock prices, indicating a potential short-term technical correction after recent highs in the gold market [1] Group 1: Market Performance - Recent performance of gold stocks includes notable declines: Tongguan Gold down 8%, China Gold International down over 5%, Lingbao Gold down 4.4%, and others experiencing declines of over 3% [1] - The latest prices for key gold stocks are as follows: Tongguan Gold at 2.060, China Gold International at 118.800, and Lingbao Gold at 15.820 [1] Group 2: Market Analysis - The spot gold market has recently reached new highs, but there was a drop of 0.27% today, falling below 3550 USD/ounce [1] - Analysts suggest that the rapid increase in gold stock prices has outpaced the growth in net profits, leading to historically high valuation metrics such as P/E ratios, indicating potential bubble-like conditions [1] - The long-term drivers for gold prices, including central bank purchases, de-dollarization, and geopolitical risks, remain strong, suggesting a battle between short-term volatility and long-term trends [1]

Group 1 - Gold prices continue to reach new highs, with spot gold rising to $3547 per ounce, setting a new record [1] - Hong Kong-listed gold stocks opened higher collectively, with notable increases in several companies [1] - Companies such as Zhaojin Mining, China Gold International, Shandong Gold, and Lingbao Gold have reached historical highs [1] Group 2 - The following companies experienced significant stock price increases: - Tongguan Gold: +5.24%, latest price at 2.410, market cap of 10.598 billion [2] - Chifeng Jilong Gold: +5.08%, latest price at 29.400, market cap of 55.872 billion [2] - Zhaojin Mining: +4.40%, latest price at 28.000, market cap of 99.187 billion [2] - China Gold International: +4.19%, latest price at 129.300, market cap of 51.256 billion [2] - China Silver Group: +3.92%, latest price at 0.530, market cap of 1.241 billion [2] - Shandong Gold: +3.63%, latest price at 32.000, market cap of 143.15 billion [2] - Zhuofeng Gold: +3.53%, latest price at 1.760, market cap of 2.179 billion [2] - Lingbao Gold: +3.53%, latest price at 16.150, market cap of 20.785 billion [2] - Zijin Mining: +2.58%, latest price at 27.800, market cap of 738.857 billion [2]

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: 珠峰黃金集團有限公司 (於開曼群島註冊成立的有限公司) 呈交日期: 2025年9月2日 第 2 頁 共 10 頁 v 1.1.1 III.已發行股份及/或庫存股份變動詳情 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) | 01815 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 3,000,000,000 | USD | | 0.0001 | USD | | 300,000 | | 增加 / 減少 (-) | | | | | | | USD | | | | 本月底結存 | | ...

Group 1 - The Hong Kong stock market's gold stocks are performing strongly, with China Silver Group leading with an 8.5% increase, followed by Zhaojin Mining at 7.3%, both reaching historical highs [1] - The strong momentum in spot silver prices is approaching $40 per ounce, which is expected to be breached soon [1] - The market is preparing for significant events in the next 14 trading days, including important U.S. data releases and the Federal Open Market Committee (FOMC) meeting [1] Group 2 - The prevailing strength in gold prices is primarily driven by the market's increasing belief that the Federal Reserve will soon resume interest rate cuts, alongside risks to the Fed's independence [1] - The market anticipates that the Federal Reserve may cut rates once or even twice this year, providing overall support for commodity prices, including gold and silver [1] - Several international financial institutions are bullish on gold prices, with UBS raising its target for gold prices to $3,700 per ounce by mid-2026, while Bank of America analysts predict prices could reach $4,000 per ounce by the same timeframe [1] Group 3 - The latest price movements of key gold stocks include: - China Silver Group at 0.510 with an increase of 8.51% - Zhaojin Mining at 25.860 with an increase of 7.30% - Shandong Gold at 31.240 with an increase of 6.40% - Lingbao Gold at 15.070 with an increase of 6.20% - China Gold International at 115.200 with an increase of 5.30% [2]

Core Viewpoint - The Hong Kong gold stocks are experiencing a strong rally, driven by rising silver prices and expectations of potential interest rate cuts by the Federal Reserve [1] Group 1: Market Performance - China Silver Group surged by 8.5%, leading the gains among gold stocks [1] - Zhaojin Mining increased by 7.3%, reaching a new historical high [1] - Other companies such as Shandong Gold, Lingbao Gold, China Gold International, and Zijin Mining also hit historical highs [1] Group 2: Commodity Prices - The strong upward trend in spot silver prices is approaching $40 per ounce, with a potential breakthrough imminent [1] - The market is preparing for significant upcoming events, including important U.S. data releases and the FOMC meeting [1] Group 3: Federal Reserve Expectations - There is a growing consensus that the Federal Reserve may initiate one or two interest rate cuts within this year, which would support commodity prices, including gold and silver [1] - Several international financial institutions are bullish on gold prices, with UBS raising its target for gold prices to $3,700 per ounce by mid-2026 [1] - Bank of America analysts predict that gold prices could reach $4,000 per ounce by mid-2026 [1]

Core Viewpoint - The company has significantly improved its financial performance in the first half of 2025, with substantial increases in revenue and profit compared to the same period in 2024 [1][2] Financial Performance - The company's revenue for the first half of 2025 is approximately RMB 236 million, representing a substantial increase of about 139.9% compared to the first half of 2024 [1] - The profit from continuing operations, specifically the jewelry new retail business, is approximately RMB 33.1 million, marking a significant increase of about 2,520.2% from the first half of 2024 [1] - The profit attributable to the company's owners for the first half of 2025 is approximately RMB 75.3 million, a remarkable turnaround from a loss of RMB 11 million in the first half of 2024, reflecting an increase of about 785.0% [1] Sales and Cost Factors - The sales of gold products in the first half of 2025 increased dramatically by approximately 1,058.7% compared to the first half of 2024, driven by a significant rise in gold prices [2] - The majority of gold products sold in the first half of 2025 were inventory items, which had lower procurement and/or processing costs, leading to a substantial increase in the gross margin of gold product sales [2] - The overall gross profit of the jewelry new retail business increased by approximately 276.1% compared to the first half of 2024 [2] Other Income and Expenses - The company recorded approximately RMB 41.2 million in income from the sale of its fresh food retail business, completed on January 13, 2025 [2] - The company incurred approximately RMB 18.5 million in share-based payment expenses due to stock options granted to employees during the first half of 2025 [2]

Core Viewpoint - The company,珠峰黄金, reported a significant turnaround in its financial performance for the six months ending June 30, 2025, with a revenue increase of 140% year-on-year and a net profit of 75.254 million RMB, compared to a loss of 10.986 million RMB in the same period last year [1] Financial Performance - The company achieved a revenue of 236 million RMB for the first half of 2025, marking a 140% increase compared to the previous year [1] - The profit attributable to the owners of the company was 75.254 million RMB, a substantial recovery from a loss of 10.986 million RMB in the same period last year [1] - Basic earnings per share from continuing and discontinued operations were 0.061 RMB [1] Sales and Profitability - The sales of gold products in the first half of 2025 increased by approximately 1058.7% compared to the first half of 2024, significantly contributing to the revenue growth [1] - The gross profit margin for gold product sales saw a substantial increase, leading to an overall gross profit rise of approximately 276.1% for the jewelry retail business compared to the first half of 2024 [1] Business Divestiture - The company completed the sale of its fresh food retail business on January 13, 2025, which generated approximately 41.2 million RMB in revenue [1]

Core Viewpoint - The company reported a significant turnaround in financial performance for the first half of 2025, with substantial increases in revenue and profit compared to the same period in 2024 [1] Financial Performance - The company achieved revenue of RMB 236 million, representing a year-on-year increase of 140% [1] - Profit attributable to owners reached RMB 75.254 million, a recovery from a loss of RMB 10.986 million in the same period last year [1] - Basic earnings per share from continuing and discontinued operations were RMB 0.061 [1] Sales and Profitability - The sales of gold products surged approximately 1058.7% in the first half of 2025 compared to the first half of 2024 [1] - The significant rise in gold prices during the first half of 2025 contributed to the increased sales [1] - The majority of gold products sold were from inventory, which had lower procurement and/or processing costs, leading to a substantial increase in gross profit margin [1] - The overall gross profit of the jewelry retail business increased by approximately 276.1% compared to the first half of 2024 [1] Business Divestiture - The company completed the sale of its fresh food retail business on January 13, 2025, which generated approximately RMB 41.2 million in revenue [1]

[Interim Results Summary](index=1&type=section&id=2025%20Interim%20Results%20Summary) The group achieved significant performance growth in H1 2025, with revenue up 139.9% and profit attributable to owners turning profitable, driven by surging gold product sales and higher gross margins [H1 2025 Performance Overview](index=1&type=section&id=H1%202025%20Performance%20Overview) The group achieved significant H1 2025 performance growth, with revenue up 139.9% and profit attributable to owners turning profitable, driven by surging gold product sales and disposal gains Performance Highlights | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Growth (%) | | :--- | :--- | :--- | :--- | | Revenue | 236.3 | 98.5 | 139.9% | | Profit from Continuing Operations | 33.1 | 1.3 | 2,520.2% | | Profit (Loss) Attributable to Owners | 75.3 | (11.0) | 785.0% | | Gold Product Sales Growth | - | - | 1,058.7% | | Jewelry New Retail Business Gross Profit Growth | - | - | 276.1% | - Net loss significantly reversed to net profit, primarily due to a substantial increase in **gold product sales of approximately 1,058.7%**, coupled with a significant rise in gold prices and lower procurement/processing costs for inventory products sold, leading to a substantial increase in gold product sales gross margin, and an overall **gross profit increase of approximately 276.1%** in the jewelry new retail business[2](index=2&type=chunk) - The disposal of the fresh food retail business recorded a gain of approximately **RMB 41.2 million** for the group[3](index=3&type=chunk) - Share-based payment expenses of approximately **RMB 18.5 million** were recognized from the grant of share options to employees, partially offsetting the aforementioned profit growth[4](index=4&type=chunk) [Condensed Consolidated Financial Statements](index=3&type=section&id=Condensed%20Consolidated%20Financial%20Statements) The condensed consolidated financial statements present the group's financial performance and position, showing significant revenue growth, profit turnaround, and asset expansion [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the group's revenue from continuing operations significantly increased, gross profit substantially improved, and loss attributable to owners successfully turned into profit, mainly due to strong gold product sales and disposal gains from discontinued operations Statement of Profit or Loss and Other Comprehensive Income | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue (Continuing Operations) | 236,328 | 98,509 | | Cost of Sales | (136,495) | (71,962) | | Gross Profit | 99,833 | 26,547 | | Profit for the Period from Continuing Operations | 33,093 | 1,263 | | Loss for the Period from Discontinued Operations | – | (15,888) | | Gain on Disposal of Subsidiaries | 41,246 | – | | Total Profit (Loss) and Comprehensive Income (Expense) for the Period | 74,339 | (14,625) | | Profit (Loss) for the Period Attributable to Owners of the Company | 75,254 | (10,986) | | Basic Earnings (Loss) Per Share (Continuing and Discontinued Operations) | 0.061 | (0.009) | | Basic Earnings Per Share (Continuing Operations) | 0.027 | 0.001 | [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the group's non-current and current assets both increased, with significant growth in property, plant and equipment, intangible assets, and bank balances and cash. Current liabilities also increased, but net current assets and total equity maintained robust growth Statement of Financial Position | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current Assets | 101,912 | 20,583 | | Property, Plant and Equipment | 83,979 | 7,424 | | Intangible Assets | 11,000 | 5,469 | | Current Assets | 1,662,973 | 1,558,900 | | Inventories | 929,074 | 973,502 | | Trade and Other Receivables | 164,929 | 93,158 | | Bank Balances and Cash | 532,186 | 429,290 | | Current Liabilities | 356,821 | 291,022 | | Trade and Other Payables | 215,667 | 72,639 | | Bank Borrowings | 88,500 | 89,000 | | Net Current Assets | 1,306,152 | 1,267,878 | | Equity Attributable to Owners of the Company | 1,407,098 | 1,313,301 | | Total Equity | 1,408,035 | 1,288,257 | [Notes to the Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed explanations on the basis of preparation, accounting policies, segment information, revenue, taxation, profit components, and significant asset and liability changes [Basis of Preparation and Accounting Policies](index=7&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) These condensed consolidated financial statements are prepared in accordance with IAS 34 and Listing Rules, reflecting the company's name change to Mount Everest Gold Group Company Limited and the reclassification of fresh food retail business as discontinued operations due to its disposal - The condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' and the applicable disclosure requirements of Appendix D2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[12](index=12&type=chunk) - The company's English name changed from 'CSMall Group Limited' to **'Mount Everest Gold Group Company Limited'**, and its Chinese name from '金貓銀貓集團有限公司' to '珠峰黃金集團有限公司', effective April 29, 2025[12](index=12&type=chunk) - The group completed the disposal of its fresh food retail business on January 13, 2025, with the financial results of the disposed group presented as 'discontinued operations' in the condensed consolidated statement of profit or loss and cash flow statement, and comparative figures for H1 2024 have been restated[13](index=13&type=chunk) - The application of revised International Financial Reporting Standards during this interim period, such as the amendment to IAS 21 'Lack of Exchangeability', did not have a significant impact on the group's financial position and performance[15](index=15&type=chunk) [Segment Information](index=8&type=section&id=Segment%20Information) Following the disposal of the fresh food retail business, the group now has only one operating and reportable segment, the jewelry new retail business, with all revenue generated from China - The group currently has only one operating and reportable segment, the jewelry new retail business, primarily engaged in the design and sale of gold, silver, colored gemstones, and other jewelry products in China[16](index=16&type=chunk) - The group's fresh food retail segment business was discontinued and disposed of during the period ended June 30, 2025[16](index=16&type=chunk) - All of the group's revenue is generated in China[17](index=17&type=chunk) [Revenue](index=9&type=section&id=Revenue) In H1 2025, the group's revenue from continuing operations significantly increased by 139.9%, primarily driven by a 1,058.7% surge in gold product sales, with gold products' contribution to total revenue rising from 12.7% to 61.5% Revenue by Product Category | Product Category | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Sales of Gold Products | 145,391 | 12,548 | | Sales of Silver Products | 90,871 | 83,633 | | Sales of Gemstones and Other Jewelry Products | 66 | 527 | | Sales of Colored Gemstones | – | 1,801 | | **Total** | **236,328** | **98,509** | - Sales of gold products significantly increased by approximately **1,058.7%** compared to H1 2024, becoming the primary driver of revenue growth[20](index=20&type=chunk) [Income Tax Expense](index=9&type=section&id=Income%20Tax%20Expense) In H1 2025, the group's income tax expense from continuing operations significantly increased, primarily due to higher taxable profit for the period, with the applicable statutory corporate income tax rate in China being 25% Income Tax Expense Details | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | PRC Corporate Income Tax (Current Period) | 22,047 | 2,557 | | Deferred Tax | 550 | (949) | | **Total** | **22,597** | **1,608** | - The group's PRC subsidiaries are subject to PRC corporate income tax at a statutory rate of **25%**[21](index=21&type=chunk) [Composition of Profit for the Period](index=10&type=section&id=Composition%20of%20Profit%20for%20the%20Period) In H1 2025, the composition of the group's profit from continuing operations included cost of inventories, depreciation of property, plant and equipment, depreciation of right-of-use assets, bank interest income, net exchange gains, write-off of leasehold improvements, short-term lease expenses, and share-based payment expenses Profit Components | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of Inventories Recognized as Expense | 136,495 | 71,962 | | Depreciation of Property, Plant and Equipment | 1,821 | 1,750 | | Depreciation of Right-of-Use Assets | 206 | 1,510 | | Bank Interest Income | (710) | (544) | | Net Exchange (Gains) Losses | (213) | 295 | | Write-off of Leasehold Improvements | 2,710 | – | | Expenses Relating to Short-term Leases of Office Premises and Retail Stores | 1,902 | 83 | | Share-based Payment Expenses | 18,543 | – | [Dividends](index=10&type=section&id=Dividends) The company's board of directors resolved not to declare any interim dividend for H1 2025, consistent with the same period last year - No dividends were paid, declared, or proposed to ordinary shareholders of the company during this interim period (for the six months ended June 30, 2024: nil)[24](index=24&type=chunk) [Earnings (Loss) Per Share](index=11&type=section&id=Earnings%20(Loss)%20Per%20Share) In H1 2025, basic earnings per share attributable to owners of the company turned from loss to profit, mainly influenced by profit growth from continuing operations and disposal gains from discontinued operations Earnings Per Share | Metric | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Basic Earnings (Loss) Per Share (Continuing and Discontinued Operations) | 0.061 | (0.009) | | Basic Earnings Per Share (Continuing Operations) | 0.027 | 0.001 | | Weighted Average Number of Ordinary Shares for Basic Earnings Per Share (thousand shares) | 1,237,875 | 1,237,875 | - Diluted earnings (loss) per share for the six months ended June 30, 2025 and 2024 are not presented as there were no potential dilutive ordinary shares outstanding during these periods[26](index=26&type=chunk) [Asset Changes](index=11&type=section&id=Asset%20Changes) During this interim period, the group invested in property, plant and equipment and intangible assets, including the acquisition of office premises and exploration rights, while trade receivables increased, but net reversal of expected credit loss provision was recognized - During this interim period, the group purchased a vehicle for **RMB 1,133,000** and leased land and buildings (through acquisition of a subsidiary) for **RMB 79,895,000** as office premises to support future business development[27](index=27&type=chunk) - New intangible assets include the capitalization of exploration rights of **RMB 5,531,000**[27](index=27&type=chunk) Trade and Other Receivables | Trade and Other Receivables | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables from Contracts with Customers | 138,956 | 73,529 | | Less: Provision for Expected Credit Losses on Trade Receivables | (16,813) | (18,390) | | **Net** | **122,143** | **55,139** | | Other Receivables, Deposits and Prepayments | 28,085 | 24,528 | | Prepayments to Suppliers | 353 | 6,126 | | Recoverable Value Added Tax | 14,247 | 6,572 | | Refundable Lease Deposits | 101 | 793 | | **Total** | **164,929** | **93,158** | - A net reversal of impairment loss (provision) of **RMB 1,577 thousand** was recognized for trade receivables (H1 2024: provision of RMB 2,908 thousand)[30](index=30&type=chunk) [Discontinued Operations](index=13&type=section&id=Discontinued%20Operations) The group completed the disposal of its fresh food retail business segment on January 13, 2025, which generated a gain of RMB 41.2 million and resulted in the reclassification of related assets and liabilities as held for sale - The group completed the disposal of its entire equity interest in Shenzhen Xiansheng (fresh food retail business segment) on January 13, 2025, for a consideration of **RMB 300,000**[31](index=31&type=chunk) Profit (Loss) from Discontinued Operations | Item | January 1 to January 13, 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Loss for the Period from Discontinued Operations | – | (15,888) | | Gain on Disposal of Subsidiaries | 41,246 | – | | Profit (Loss) for the Period from Discontinued Operations | 41,246 | (15,888) | Assets and Liabilities Classified as Held for Sale | Assets and Liabilities Classified as Held for Sale as of December 31, 2024 (RMB thousand) | | :--- | :--- | | Property, Plant and Equipment | 407 | | Right-of-Use Assets | 1,362 | | Goodwill | 3,972 | | Intangible Assets | 4,647 | | Inventories | 556 | | Trade and Other Receivables | 18,460 | | Bank Balances and Cash | 474 | | Trade and Other Payables | (61,174) | | Amount Due to a Non-controlling Interest | (22,978) | | Lease Liabilities | (4,419) | | Tax Liabilities | (1,161) | | Bank Borrowings | (8,000) | | **Net Liabilities Disposed of** | **(67,842)** | - The gain on disposal of subsidiaries was **RMB 41,246 thousand**, with a net cash outflow of **RMB 174 thousand**[38](index=38&type=chunk) [Trade and Other Payables](index=18&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, the group's trade and other payables significantly increased, mainly due to higher consideration payable for subsidiary acquisitions and amounts due to fellow subsidiaries, with historical context provided for the provision for termination of transfer contracts Trade and Other Payables Details | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Payables | 32,953 | 20,456 | | Other Payables and Accrued Expenses | 133,606 | 26,473 | | Value Added Tax and Other Taxes Payable | 41,695 | 18,297 | | Provision for Termination of Transfer Contracts | 7,413 | 7,413 | | **Total** | **215,667** | **72,639** | - The balance of other payables and accrued expenses includes consideration payable for the acquisition of subsidiaries of **RMB 80,000,000**[40](index=40&type=chunk) - The aging analysis of trade payables shows a larger proportion of amounts over 90 days, but the overall credit period generally ranges from **1 to 90 days**[41](index=41&type=chunk) [Bank Borrowings](index=20&type=section&id=Bank%20Borrowings) As of June 30, 2025, the group's total bank borrowings slightly decreased, primarily secured by personal guarantees, corporate guarantees, and certain assets, bearing interest at fixed and floating rates Bank Borrowings Details | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Bank Facilities | 88,500 | 105,200 | | Bank Borrowings Utilized | 88,500 | 89,000 | | Borrowings at Fixed Annual Interest Rate | 8,500 (3.75%) | 9,000 (4.25%) | | Borrowings at Floating Annual Interest Rate | 80,000 (Prime Lending Rate plus 1.70%) | 80,000 (Prime Lending Rate plus 1.85%) | - Bank borrowings are secured and/or guaranteed by personal guarantees provided by Mr. Chen Wantian, a director of China Silver Group, and his spouse, Mr. Qian Pengcheng, a director of the company, a supplier, and an independent third party, as well as corporate guarantees from certain assets, a subsidiary, and a fellow subsidiary[42](index=42&type=chunk) [Acquisition of Subsidiaries Accounted for as Asset Acquisition](index=21&type=section&id=Acquisition%20of%20Subsidiaries%20Accounted%20for%20as%20Asset%20Acquisition) The group completed the acquisition of 100% equity interest in four target companies on May 25, 2025, for a total consideration of RMB 80,000,000, aiming to acquire leased land and buildings for future office premises, with the transaction accounted for as an asset acquisition - Shenzhen Guoyintongbao Co., Ltd., an indirect wholly-owned subsidiary of the group, acquired **100% equity interest** in four target companies, including Shenzhen Heqingde Investment Development Co., Ltd., for a total consideration of **RMB 80,000,000**[44](index=44&type=chunk) - The acquisition aims to obtain leased land and buildings for the group's future business development office premises, and the transaction has been accounted for as an asset acquisition[44](index=44&type=chunk) Identifiable Assets and Liabilities from Acquisition | Identifiable Assets and Liabilities Arising from the Transaction (RMB thousand) | | :--- | :--- | | Leased Land and Buildings | 79,895 | | Other Receivables | 130 | | Bank Balances and Cash | 315 | | Other Payables | (340) | | Consideration Payable | 80,000 | [Management Discussion and Analysis](index=22&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews the group's business performance, segment operations, sales channels, new exploration initiatives, discontinued operations, future outlook, and financial performance [Business Review](index=22&type=section&id=Business%20Review) In H1 2025, the group achieved substantial growth in both revenue and net profit, successfully turning losses into profits, primarily due to a strategic shift towards gold and entry into upstream gold resources, demonstrating strong competitiveness amidst global macroeconomic uncertainties Business Performance Summary | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Growth (%) | | :--- | :--- | :--- | :--- | | Overall Revenue | 236.3 | 98.5 | 139.9% | | Gold Product Sales Growth | - | - | 1,058.7% | | Contribution of Gold Products to Sales Revenue | 61.5% | 12.7% | - | | Net Profit (Loss) Attributable to Owners of the Company | 75.3 | (11.0) | 785.0% | | Profit from Continuing Operations | 33.1 | 1.3 | 2,520.2% | - The group rapidly adjusted its strategy, shifting its strategic focus to gold and officially entering the upstream gold resource sector, significantly enhancing market competitiveness[46](index=46&type=chunk) - Global macroeconomic uncertainties pushed up gold prices, with international gold prices continuously rising, leading to a boom in the precious metals market[47](index=47&type=chunk) [Jewelry New Retail Business Segment](index=23&type=section&id=Jewelry%20New%20Retail%20Business%20Segment) Driven by strong gold price trends, the group's investment-grade gold bar product sales significantly increased in H1, leading to substantial growth in gold product gross margin due to low-cost inventory. Concurrently, the group reduced marketing expenses for its lab-grown diamond brand SISI to maintain profitability and liquidity - The strong trend in gold prices reinforced investors' confidence in gold's safe-haven and value-preserving functions, leading to a significant increase in market demand for physical gold, especially investment-grade products[48](index=48&type=chunk) - The group's sales of high average transaction value, low processing fee investment gold bar products significantly increased in H1, and due to most gold products sold being from inventory with lower procurement and/or processing costs, coupled with a significant rise in gold prices, the **gross margin on gold product sales substantially increased**[48](index=48&type=chunk) - The group reduced marketing expenses for its lab-grown diamond brand SISI compared to previous years, as oversupply in China's lab-grown diamond market led to price declines, aiming to maintain business profitability and ample liquidity amidst macroeconomic challenges[49](index=49&type=chunk) [Sales Channels](index=24&type=section&id=Sales%20Channels) The group significantly enhanced brand awareness and sales performance online through TV and video shopping channels, short-video marketing, and KOL endorsements. Offline, it serves wholesale customers via the Shenzhen jewelry showroom and adjusted CSmall experience store layouts, ceasing expansion of existing stores - Regarding online sales channels, the group became a core supplier of gold, silver, and jewelry products for all first-tier TV stations, reaching over **100 million household viewers daily**, significantly enhancing brand awareness[50](index=50&type=chunk) - Short-video marketing and KOL endorsements have become standard for brand marketing, with content becoming central to marketing, sales, and operations[50](index=50&type=chunk) - Offline sales primarily serve wholesale customers and franchisees through the Shenzhen jewelry showroom, with CSmall experience store layouts adjusted to no longer expand existing stores, resulting in only **two franchised CSmall experience stores** as of June 30, 2025[51](index=51&type=chunk)[52](index=52&type=chunk) [New Layout for Exploration Business](index=25&type=section&id=New%20Layout%20for%20Exploration%20Business) The group actively expanded its upstream exploration business, discovering multiple gold mineralization zones in the Shannan exploration area in Tibet, with an estimated inferred gold metal quantity of approximately 5,800 kg, upgrading the exploration stage to 'detailed survey', and identifying potential for associated antimony. Additionally, the group acquired a lead-zinc mine exploration license in Xigaze, Tibet, further expanding its mineral resource reserves - On August 21, 2024, the group acquired a **51% equity interest** in Jiangxi Letong New Material Co., Ltd., which owns **100% equity interest** in Tibet Longtianyong Mining Co., Ltd., holding a mineral resource general survey and exploration license for an area of **28.88 square kilometers** in Shannan City, Tibet[53](index=53&type=chunk) - According to the general survey report, multiple gold mineralization zones were discovered in the Shannan exploration area, with an estimated inferred ore quantity of approximately **2,100,000 tons**, an inferred gold metal quantity of approximately **5,800 kg**, an average gold grade of approximately **2.77 grams/ton**, and a preliminary estimated prospective metal quantity of **20-25 tons**[53](index=53&type=chunk) - In March 2025, the exploration stage of the prospecting right was upgraded from 'general survey' to 'detailed survey', with the exploration area adjusted to **22.8246 square kilometers**, and the detailed survey implementation plan was approved, marking significant progress in the company's transformation into a gold resource enterprise with large-scale gold mine development potential[54](index=54&type=chunk) - The Shannan mining area is a typical gold-antimony deposit with co-existing gold and antimony, where revenue from associated antimony is expected to become a significant profit growth point for the project and enable entry into the core semiconductor material sector[54](index=54&type=chunk) - On July 18, 2025, the group, in conjunction with China Silver Group, completed the acquisition of a **55% equity interest** in Jiangxi Yiding Trading Co., Ltd., which holds **100% equity interest** in Xigaze Huaye Mining Development Co., Ltd. in Tibet, holding a mineral resource general survey and exploration license for an area of **50.81 square kilometers** in Xigaze City, Tibet, primarily engaged in lead-zinc mine exploration[55](index=55&type=chunk) [Discontinued Operations](index=27&type=section&id=Discontinued%20Operations) The group completed the disposal of its fresh food retail business segment on January 13, 2025, which had severely declined due to reduced pork consumption and the recovery of traditional fresh food models post-pandemic. The group decided to sell to focus management attention and resources on its core gold and silver jewelry retail business, generating a disposal gain of approximately RMB 41.2 million - The group completed the disposal of its entire **51% equity interest** in Shenzhen Xiansheng Zhanggui Technology Co., Ltd. (fresh food retail business segment) on January 13, 2025[57](index=57&type=chunk) - The business severely declined due to reduced pork consumption and market diversion by the recovery of traditional fresh food models post-pandemic, leading to weakened business model value and limited prospects and growth potential[57](index=57&type=chunk) - The disposal generated a gain of approximately **RMB 41.2 million**, allowing the group to focus management attention and financial and human resources on its core gold and silver jewelry retail business[57](index=57&type=chunk) [Outlook](index=28&type=section&id=Outlook) After rebranding as 'Mount Everest Gold', the group officially entered a 'golden era', poised to benefit from the gold bull market and achieve upstream-downstream synergies by expanding its gold mineral exploration business. Concurrently, the group closely monitors the Real World Asset (RWA) market, not ruling out entry into the gold and precious metals RWA market at an opportune time - After rebranding as **'Mount Everest Gold'**, the group officially entered a new 'golden era', expected to benefit from the epic breakthrough in the gold market and the steady rise of gold mining stocks[58](index=58&type=chunk) - New acquisitions and exploration progress in Shannan will drive the group's expansion into upstream mining operations, granting greater control over upstream raw material supply and creating synergies for the jewelry new retail business[58](index=58&type=chunk) - The group closely monitors the development trend of Real World Assets (RWA), and with gold and precious metals as important underlying assets for future RWA, the group does not rule out entering the gold and precious metals RWA market at an appropriate time[59](index=59&type=chunk) [Financial Review](index=29&type=section&id=Financial%20Review) The group's H1 2025 financial performance was strong, with significant growth in revenue and gross profit from continuing operations, and net profit turning profitable. Working capital management efficiency improved, and the net debt-to-equity ratio improved. The group also undertook significant capital expenditures and acquisitions while maintaining a robust liquidity position - In H1 2025, revenue from continuing operations was approximately **RMB 236.3 million**, a substantial year-on-year increase of approximately **139.9%**, primarily driven by a significant increase in gold product sales of approximately **1,058.7%**, rising gold prices, and sales of low-cost inventory[60](index=60&type=chunk) Financial Performance Summary | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 236,328 | 98,509 | | Cost of Sales | 136,495 | 71,962 | | Gross Profit | 99,833 | 26,547 | | Gross Profit Margin | 42.2% | 26.9% | | Selling and Distribution Expenses | 10,326 | 8,700 | | Administrative Expenses | 34,074 | 10,100 | | Income Tax Expense | 22,597 | 1,600 | | Profit (Loss) Attributable to Owners of the Company | 75,300 | (11,000) | - Inventory turnover days decreased from **3,267 days** as of December 31, 2024, to approximately **1,275 days** in H1 2025, trade receivables turnover days decreased from **130 days** to approximately **69 days**, and trade payables turnover days decreased from **85 days** to approximately **36 days**, indicating improved working capital management efficiency[71](index=71&type=chunk)[72](index=72&type=chunk) - As of June 30, 2025, the group was in a net cash position, with a net debt-to-equity ratio of approximately **-31.5%** (December 31, 2024: -26.4%), indicating an improved net cash position[73](index=73&type=chunk) - Capital expenditure in H1 2025 was approximately **RMB 81.0 million**, mainly related to the acquisition of leased land and buildings for the new China headquarters and the purchase of a vehicle[74](index=74&type=chunk) - As of June 30, 2025, the group's contracted but unprovided capital expenditure in the financial statements was **RMB 3.5 million** for the acquisition of a non-wholly owned subsidiary[76](index=76&type=chunk) - Jiangxi Jiyin Industrial Co., Ltd., a subsidiary of the group, provided a corporate guarantee of **RMB 250.0 million** to Jiangxi Longtianyong Nonferrous Metals Co., Ltd., a fellow subsidiary, as a contingent liability[77](index=77&type=chunk) - Almost all of the group's assets, liabilities, income, costs, and expenses are denominated in RMB, resulting in extremely low foreign exchange exposure, with no foreign exchange hedging arrangements in place[79](index=79&type=chunk) - As of June 30, 2025, the group employed **117 staff** (December 31, 2024: 123 staff), with total staff costs of approximately **RMB 6.9 million** in H1 2025[80](index=80&type=chunk) - The group maintained a robust liquidity position in H1 2025, primarily funded by internal resources and bank borrowings[81](index=81&type=chunk) - The board of directors resolved not to declare any interim dividend for H1 2025[82](index=82&type=chunk) [Other Information](index=36&type=section&id=Other%20Information) This section covers significant investments, acquisitions, disposals, post-reporting period events, corporate governance practices, acknowledgements, and publication details [Significant Investments, Acquisitions and Disposals](index=36&type=section&id=Significant%20Investments%2C%20Acquisitions%20and%20Disposals) The group completed the disposal of a 51% equity interest in its fresh food retail business on January 13, 2025. Subsequent to the reporting period, Jiangxi Jiyin Industrial Co., Ltd., an indirect wholly-owned subsidiary, entered into an equity transfer agreement to dispose of certain equity interests in Jiangxi Yiding Trading Co., Ltd - On January 13, 2025, the group completed the disposal of a **51% equity interest** in Shenzhen Xiansheng Zhanggui Technology Co., Ltd. (fresh food retail business)[83](index=83&type=chunk) - During the reporting period, Jiangxi Jiyin Industrial Co., Ltd., an indirect wholly-owned subsidiary of the group, entered into an equity transfer agreement to dispose of certain equity interests in Jiangxi Yiding Trading Co., Ltd., with the transaction completed after the reporting period[83](index=83&type=chunk) [Material Events After Reporting Period](index=36&type=section&id=Material%20Events%20After%20Reporting%20Period) On July 18, 2025, Jiangxi Jiyin Industrial Co., Ltd., an indirect wholly-owned subsidiary of the group, completed the acquisition of a 35% equity interest in Jiangxi Yiding Trading Co., Ltd., which holds 100% equity interest in Xigaze Huaye Mining Development Co., Ltd. in Tibet, primarily engaged in lead-zinc mine exploration - On June 17, 2025, Jiangxi Jiyin Industrial Co., Ltd., an indirect wholly-owned subsidiary of the group, entered into an equity transfer agreement to acquire a **35% equity interest** in Jiangxi Yiding Trading Co., Ltd. for a total consideration of **RMB 3,500,000**[84](index=84&type=chunk) - Jiangxi Yiding Trading Co., Ltd. holds **100% equity interest** in Xigaze Huaye Mining Development Co., Ltd. in Tibet, which is primarily engaged in lead-zinc mine exploration[84](index=84&type=chunk) - The transaction was completed on **July 18, 2025**[84](index=84&type=chunk) [Corporate Governance](index=37&type=section&id=Corporate%20Governance) The company is committed to maintaining high corporate governance standards, complying with the Corporate Governance Code, except for the non-segregation of Chairman and CEO roles. The board confirmed compliance with the Model Code for Securities Transactions, and the audit committee reviewed financial statements and internal control systems - The company has complied with the code provisions under the Corporate Governance Code, except for code provision C.2.1 (the roles of chairman and chief executive should be separate)[85](index=85&type=chunk) - Mr. Chen He currently serves as both the Chairman of the Board and Chief Executive Officer of the company, and the board considers him the best candidate for these positions[85](index=85&type=chunk) - All directors confirmed their compliance with the Model Code for Securities Transactions by Directors of Listed Issuers throughout H1 2025[86](index=86&type=chunk) - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities in H1 2025[87](index=87&type=chunk) - The Audit Committee reviewed the group's financial reporting process and risk management and internal control systems, deeming the unaudited condensed consolidated financial statements to be prepared in compliance with applicable accounting standards, Listing Rules, and legal requirements[88](index=88&type=chunk) [Acknowledgement](index=38&type=section&id=Acknowledgement) The board expresses gratitude to management, all employees, shareholders, and customers, acknowledging their hard work, contributions, and long-term support - The board extends its gratitude to the management and all staff for their hard work and contributions, and to the shareholders and customers for their long-term support of the group[89](index=89&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=39&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This interim results announcement has been published on the company's website and HKEX website, and the interim report will be dispatched to shareholders and published on the same websites in due course - This announcement is published on the company's website (www.everestgold.hk) and the website of Hong Kong Exchanges and Clearing Limited (www.hkexnews.hk)[90](index=90&type=chunk) - The company's 2025 interim report will be dispatched to shareholders who require a printed copy and published on the same websites in due course[90](index=90&type=chunk)