Core Insights - The article highlights the top short-selling ratios and amounts for various companies, indicating significant market sentiment against these stocks [1][2]. Short-Selling Ratios - Anta Sports-R (82020), Li Ning-R (82331), and Great Wall Motors-R (82333) have the highest short-selling ratios at 100.00% [1][2]. - AIA Group-R (81299) follows with a short-selling ratio of 99.20%, while China Resources Beer-R (80291) has a ratio of 94.83% [2]. Short-Selling Amounts - Alibaba-SW (09988) leads in short-selling amount with 3.717 billion, followed by Xiaomi Group-W (01810) at 2.634 billion and Tencent Holdings (00700) at 2.457 billion [1][2]. - Other notable companies include SMIC (00981) with 2.219 billion and BYD Company (01211) with 1.342 billion [2]. Deviation Values - Tencent Holdings-R (80700) has the highest deviation value at 44.97%, indicating a significant difference from its average short-selling ratio [1][2]. - Great Wall Motors-R (82333) and China Lilang (01234) follow with deviation values of 31.15% and 26.81%, respectively [2].

Core Viewpoint - The company reported a slight revenue growth of 0.7% in H1 2025, driven primarily by the sports category, despite facing challenges related to high base effects from the previous year and temporary gross margin pressures [1][2][3] Financial Performance - Revenue increased to $775 million in H1 2025 from $770 million in H1 2024, with a shipment volume rise of 3.8% to 27.5 million pairs [1] - Gross profit decreased by 11.9% to $175 million, resulting in a gross margin of 22.6%, down from 25.8% in the previous year [2] - Operating profit fell by 14.5% to $84.7 million, with an operating margin of 10.9%, compared to 12.9% in H1 2024 [2] Product Category Insights - Sales in the sports category grew by 8.2%, accounting for 48.5% of total revenue, benefiting from increased shipments to major sports clients and a new client collaboration [1] - Revenue from fashion and luxury categories combined decreased by 3.5%, with respective contributions of 25.4% and 7.8% to total revenue [1] - The leisure category saw a revenue decline of 9.2%, representing 18.3% of total revenue [1] Geographic Distribution - North America and Europe are the largest markets, contributing 48.7% and 23.4% to revenue, respectively, followed by China (including Hong Kong) at 15.5% [2] Strategic Planning - The company is on track with its three-year plan (2023-2025), aiming for a 10% operating profit margin and low double-digit growth in after-tax profits [3][4] - The company plans to expand total capacity by 20 million pairs, enhancing production in Indonesia and Bangladesh, and focusing on developing handbag and accessory manufacturing as a long-term growth driver [4][5] Adjustments and Forecasts - Based on H1 2025 performance and operational efficiency post-capacity expansion, the company adjusted its profit forecasts, projecting net profits of $160 million, $180 million, and $190 million for 2025-2027 [6]

Group 1 - The overall industry sentiment shows an upward trend in sectors such as power equipment, machinery, electronics, food and beverage, light manufacturing, real estate, and retail, while sectors like oil and petrochemicals, building materials, pharmaceuticals, textiles, automobiles, public utilities, and environmental protection are on a downward trend [2][23] - The report predicts strong performance in specific sub-industries over the next four weeks, highlighting automotive services, commercial vehicles, automotive parts, rail transit equipment, lighting equipment, household appliance components, chemical pharmaceuticals, non-metallic materials, plastics, consumer electronics, and electronic chemicals [2][23] - The investment themes are categorized into three directions: 1) breakthroughs in technology AI, 2) economic recovery and market liquidity leading to a "stronger gets stronger" market style, and 3) the continued rise of undervalued assets [2][23] Group 2 - In September, exports exceeded expectations with a year-on-year growth of 8.3%, driven by strong performance in integrated circuits and shipbuilding, marking the highest growth in six months [3][27] - Imports also saw a significant increase, with a year-on-year growth of 7.4%, and a month-on-month increase of 8.5%, the highest September month-on-month growth since 2015 [3][29] - The trade surplus for September was $90.45 billion, lower than market expectations but still above last year's levels, indicating robust external trade performance [3][29] Group 3 - The chemical raw materials and chemical products manufacturing industry reported a total profit of 246.08 billion yuan from January to August, reflecting a year-on-year decline of 5.5% [11] - The prices of hydrogen fluoride and hydrogen peroxide have been rising, with the hydrogen peroxide market showing strong upward momentum due to tight supply and increased demand from downstream industries [11][17] - The report indicates that the chemical industry is facing challenges, including price fluctuations and production safety risks, which could impact profitability [11][17] Group 4 - The company Hualu Hensheng reported a revenue of 15.764 billion yuan for the first half of 2025, a year-on-year decrease of 7.1%, with a net profit of 1.569 billion yuan, down 29.5% [10] - The company experienced a recovery in the second quarter, with revenue of 7.992 billion yuan and a net profit of 862 million yuan, reflecting a quarter-on-quarter increase of 2.8% and 21.9% respectively [10] - The production of new projects, such as the BDO-NMP facility in Jingzhou and the diacid project in Dezhou, is expected to contribute significantly to revenue and profit in the second half of the year [10]

Core Viewpoint - Tianfeng Securities maintains a "buy" rating for Jiu Xing Holdings (01836), adjusting profit forecasts based on the performance in the first half of 2025 and considering last year's high base effect and operational efficiency from new capacity deployment [1] Group 1: Financial Performance - The net profit forecasts for 2025-2027 are adjusted to $160 million, $180 million, and $190 million, respectively, down from previous estimates of $180 million, $200 million, and $220 million [1] - Earnings per share (EPS) estimates are revised to $0.20, $0.21, and $0.23 for the same period, compared to earlier projections of $0.22, $0.24, and $0.26 [1] Group 2: Strategic Planning - The company is currently in a stable position, a direct result of its three-year plan (2023-2025), which aims to improve product category mix, diversify and expand the customer base, and optimize manufacturing base layout [1] - The company has set two main profit targets: achieving a 10% operating profit margin and a low double-digit annual growth rate in after-tax profit over the three-year period [1] - The company has already exceeded these targets in 2023 and 2024, expressing confidence in achieving them by the end of 2025 [1] Group 3: Operational Challenges - The company faces short-term challenges in profitability due to two main factors: a high base effect from customers advancing orders to meet demand before the Paris Olympics and operational efficiency issues related to increased capacity in Indonesia and the Philippines [2] - To meet demand and ensure customer goals, the company has shifted some production to a factory in Vietnam, resulting in increased costs, including overtime expenses [2] - Despite initial challenges, the company expects conditions to improve in the second half of the year [2] Group 4: Future Growth Plans - As the company prepares to finalize its next three-year plan (2026-2028), it remains on a growth trajectory [2] - The new plan includes an expansion of total capacity by 20 million pairs, achieved through increasing capacity at the new factory in Solo, Indonesia, starting operations at a second factory in Bangladesh, and accelerating the construction of a dedicated factory for its largest sports client in Indonesia [2] - Another focus of the upcoming three-year plan is the development of handbag and accessory manufacturing, which the company aims to establish as a significant long-term growth driver [2] - The company has recently acquired a small but experienced handbag factory in Vietnam to enhance product quality and production efficiency in its handbag business [2] - The next three-year plan will enable the company to meet cross-product category demands from brand customers, positioning itself as an ideal partner that combines high-quality standards with added value [2]

Core Viewpoint - Tianfeng Securities maintains an "overweight" rating for Jiu Xing Holdings based on its performance in the first half of 2025, adjusting profit forecasts due to last year's high base effect and operational efficiency from new capacity deployment [1] Group 1: Financial Performance - The expected net profits for 2025-2027 are $160 million, $180 million, and $190 million, respectively, down from previous estimates of $180 million, $200 million, and $220 million [1] - Earnings per share (EPS) are projected to be $0.20, $0.21, and $0.23 for the same period, revised from $0.22, $0.24, and $0.26 [1] Group 2: Strategic Planning - The company is currently in a stable position, a direct result of its three-year plan (2023-2025), which aims to improve product category mix, diversify and expand the customer base, and optimize manufacturing base layout [1] - The company has set two main profit targets: achieving a 10% operating profit margin and a low double-digit annual growth rate in after-tax profits over the three-year period [1] - The company is confident in achieving these targets by the end of 2025, having already exceeded them in 2023 and 2024 [1] Group 3: Operational Challenges - The company faces short-term challenges in profitability due to two main factors: a high base effect from customers advancing orders to meet demand before the Paris Olympics and operational efficiency issues related to increased capacity in Indonesia and the Philippines [2] - To meet demand and ensure customer goals, the company has shifted some production to its factory in Vietnam, resulting in increased costs, including overtime expenses [2] - Despite initial challenges, the company expects conditions to improve in the second half of the year [2] Group 4: Future Growth Plans - As the company prepares to finalize its next three-year plan (2026-2028), it remains on a growth trajectory [2] - The new plan includes expanding total capacity by 20 million pairs, enhancing production at the new factory in Solo, Indonesia, launching operations at a second factory in Bangladesh, and accelerating the construction of a dedicated factory for its largest sports client in Indonesia [2] - Another focus of the upcoming three-year plan is to develop the handbag and accessories manufacturing business, which the company aims to establish as a significant long-term growth driver [2] - The company has recently acquired a small but experienced handbag factory in Vietnam to improve product quality and production efficiency in its handbag business [2] - The next three-year plan will enable the company to meet cross-product category demands from brand customers, positioning itself as an ideal partner that combines high-quality standards with added value [2]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price set at HKD 15.73, indicating a potential upside of 10%-20% over the next six months [4]. Core Insights - The company reported a revenue growth of 0.7% to USD 775 million in 25H1, driven primarily by a 3.8% increase in shipment volume to 27.5 million pairs, largely attributed to the sports category [1][2]. - The average selling price of footwear decreased by 3.2% to USD 27.4 per pair, influenced by a higher proportion of lower-priced sports product orders [1]. - The sports category sales increased by 8.2%, accounting for 48.5% of total manufacturing revenue, benefiting from increased shipments to major sports clients and successful collaborations with new clients [1][2]. - The company is currently facing temporary gross margin pressures due to operational efficiency issues during capacity expansions in Indonesia and the Philippines [2][8]. - The adjusted net profit for 25H1 was USD 77.9 million, down from USD 92.9 million in the previous year, with an adjusted net profit margin of 10.1% [3][9]. Summary by Sections Financial Performance - In 25H1, gross profit decreased by 11.9% to USD 175 million, with a gross margin of 22.6%, down from 25.8% in the previous year [2]. - Operating profit fell by 14.5% to USD 84.7 million, resulting in an operating profit margin of 10.9% [2][3]. Market and Product Strategy - North America and Europe are the company's largest markets, contributing 48.7% and 23.4% to revenue, respectively [2]. - The company is optimizing its product mix and expanding its customer base as part of its three-year plan (2023-2025), aiming for a 10% operating profit margin and low double-digit growth in after-tax profit [4][8]. Future Outlook - The company plans to expand its total capacity by 20 million pairs and enhance its handbag and accessories manufacturing business as part of its next three-year plan (2026-2028) [8].

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 | | | 致：香港交易及結算所有限公司 公司名稱: 九興控股有限公司 呈交日期: 2025年10月8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) | 01836 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 5,000,000,000 | HKD | | 0.1 HKD | | 500,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | | | 本月底結存 | | | 5,000,000,000 | HKD | | 0.1 HKD | | 500,000,000 | 本月底法定/註冊股本總額： HKD 500,000,000 第 1 頁 共 10 頁 v 1 ...

Summary of Key Points Core Viewpoint - On September 2, 2025, Jiang Yimin, an executive director of Jiuxing Holdings (01836.HK), reduced his shareholding by selling 100,000 shares at an average price of HKD 16.6053 per share, totaling approximately HKD 1.66053 million. Following this transaction, his shareholding decreased from 6.80% to 6.78% [1]. Group 1 - Jiang Yimin sold 100,000 shares of Jiuxing Holdings at an average price of HKD 16.6053 per share [1]. - The total value of the shares sold amounted to approximately HKD 1.66053 million [1]. - After the sale, Jiang Yimin's total shareholding is now 56,926,918 shares, representing 6.78% of the company [1].

致：香港交易及結算所有限公司 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | | | 呈交日期: 2025年9月4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) | 01836 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 5,000,000,000 | HKD | | 0.1 HKD | | 500,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | | | 本月底結存 | | | 5,000,000,000 | HKD | | 0.1 HKD | | 500,000,000 | 本月底法定/註冊股本總額： HKD 500,000,000 FF301 第 1 頁 共 10 頁 v 1.1.1 FF301 ...

[Chairman's Statement](index=3&type=section&id=%E4%B8%BB%E5%B8%AD%E5%A0%B1%E5%91%8A) [Operational Overview and Three-Year Plan Progress](index=3&type=section&id=2.1%20%E7%87%9F%E9%81%8B%E6%A6%82%E8%A6%BD%E8%88%87%E4%B8%89%E5%B9%B4%E8%A6%8F%E5%8A%83%E9%80%B2%E5%B1%95) The company maintains strong demand and near-full capacity utilization in H1 2025, with its three-year plan on track - Despite macroeconomic uncertainty, the company experienced strong demand for its diversified product and geographical capacity in H1 2025, with non-dedicated manufacturing facilities operating at near-full capacity[3](index=3&type=chunk) - The three-year plan (2023-2025) has **exceeded its profitability targets** for 2023 and 2024, which were a 10% operating profit margin and a low-teens percentage growth rate in profit after tax[3](index=3&type=chunk) [Short-term Profitability Challenges and Future Growth Strategies](index=3&type=section&id=2.2%20%E7%9F%AD%E6%9C%9F%E7%9B%88%E5%88%A9%E6%8C%91%E6%88%B0%E8%88%87%E6%9C%AA%E4%BE%86%E5%A2%9E%E9%95%B7%E7%AD%96%E7%95%A5) The company faces short-term profit pressure from a high base effect and capacity ramp-up issues but plans for significant expansion - Short-term profitability challenges in the first half were due to a high base effect from an **early shipment of approximately 1 million pairs** in H1 2024 and operational inefficiencies during capacity ramp-ups in Indonesia and the Philippines[3](index=3&type=chunk) - To meet demand, some production was shifted to Vietnam footwear factories, leading to increased costs, including overtime expenses[3](index=3&type=chunk) - The company plans to expand its total capacity by another **20 million pairs** starting this year by ramping up its new factory in Solo, Indonesia, commissioning a second factory in Bangladesh, and accelerating the construction of a dedicated factory in Indonesia for its largest sports client[4](index=4&type=chunk) - The next three-year plan (2026-2028) will focus on developing the handbags and accessories manufacturing business, supported by the acquisition of a small handbag factory in Vietnam[4](index=4&type=chunk) [Dividend Policy and ESG Performance](index=3&type=section&id=2.3%20%E8%82%A1%E6%81%AF%E6%94%BF%E7%AD%96%E8%88%87ESG%E8%A1%A8%E7%8F%BE) The company declared an interim dividend, continues its excess cash return program, and achieved a higher MSCI ESG rating - The Board of Directors has resolved to declare an interim dividend of **52 HK cents per ordinary share**, in line with its long-term 70% payout policy[5](index=5&type=chunk) - The excess cash return program will continue, distributing an additional **$60 million annually** in fiscal years 2025 and 2026 through share buybacks and special dividends[5](index=5&type=chunk) - In August 2025, the company's MSCI ESG rating was upgraded from 'A' to **'AA'**, marking the second consecutive year of improvement[5](index=5&type=chunk) [Management Discussion and Analysis](index=4&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) [Business Strategy and Three-Year Plan](index=4&type=section&id=3.1%20%E6%A5%AD%E5%8B%99%E7%AD%96%E7%95%A5%E8%88%87%E4%B8%89%E5%B9%B4%E8%A6%8F%E5%8A%83) The company leverages its manufacturing excellence and customer-centric model to drive growth under its 2023-2025 strategic plan - The company is renowned in the footwear industry for its superior product design, craftsmanship, quality commitment, and flexibility in rapid product launches and small-batch production[8](index=8&type=chunk) - The three-year plan (2023-2025) focuses on business growth and margin enhancement through strengthening the category mix, expanding production, optimizing efficiency, and improving cost-effectiveness[9](index=9&type=chunk)[10](index=10&type=chunk) Three-Year Plan (2023-2025) Targets | Metric | Target | | :--- | :--- | | Operating Profit Margin | 10% | | Profit After Tax CAGR | Low-teens percentage | [Business Review and Financial Performance](index=6&type=section&id=3.2%20%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7%E8%88%87%E8%B2%A1%E5%8B%99%E8%A1%A8%E7%8F%BE) Revenue grew slightly in H1 2025, but profitability declined due to a high base effect and operational inefficiencies Key Financial Indicators for H1 2025 | Indicator | H1 2025 (USD thousands) | H1 2024 (USD thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Consolidated Revenue | 775,100 | 770,000 | +0.7% | | Shipment Volume (million pairs) | 27.5 | 26.5 | +3.8% | | Average Selling Price (per pair) | 27.4 | 28.3 | -3.2% | | Gross Profit | 175,200 | 198,900 | -11.9% | | Gross Profit Margin | 22.6% | 25.8% | -3.2%pp | | Reported Operating Profit | 84,700 | 99,100 | -14.5% | | Operating Profit Margin (before fair value changes) | 10.9% | 12.9% | -2.0%pp | | Net Profit | 78,100 | 91,500 | -14.6% | | Adjusted Net Profit | 77,900 | 92,900 | -16.2% | | Adjusted Net Profit Margin | 10.1% | 12.1% | -2.0%pp | | Net Cash Position | 291,300 | 326,100 | -10.7% | | Net Gearing Ratio | -26.6% | -29.6% | +3.0%pp | - The decline in gross profit and gross profit margin was primarily due to the high base from early shipments last year, insufficient training efficiency for new workers in Indonesia and the Philippines, and increased costs from shifting some production to Vietnam[18](index=18&type=chunk) - North America and Europe are the Group's two largest markets, accounting for **48.7% and 23.4% of total revenue**, respectively[12](index=12&type=chunk) Product Category Sales Mix for H1 2025 | Product Category | Sales Change | % of Total Manufacturing Revenue (H1 2025) | % of Total Manufacturing Revenue (H1 2024) | | :--- | :--- | :--- | :--- | | Sports | +8.2% | 48.5% | 45.1% | | Fashion & Luxury | -3.5% | 25.4% (Fashion), 7.8% (Luxury) | 26.2% (Fashion), 8.4% (Luxury) | | Casual | -9.2% | 18.3% | 20.3% | [Industry Recognition and Future Outlook](index=8&type=section&id=3.3%20%E8%A1%8C%E4%B8%9A%E8%AE%A4%E5%8F%AF%E4%B8%8E%E6%9C%AA%E6%9D%A5%E5%B1%95%E6%9C%9B) The company's ESG rating was upgraded, and it anticipates modest shipment growth with plans for significant capacity expansion - MSCI ESG Research upgraded the company's MSCI ESG rating from 'A' to **'AA'**[19](index=19&type=chunk) - Full-year 2025 shipment volume is expected to see modest growth, but profitability will be constrained by the gradual efficiency improvements at its Indonesian and Philippine manufacturing facilities[20](index=20&type=chunk) - The company plans to increase total capacity by an additional **20 million pairs** starting in 2025 through ramping up its new factory in Solo, Indonesia, commissioning a second facility in Bangladesh, and accelerating the construction of a dedicated factory in Indonesia for its largest sports client[21](index=21&type=chunk) - The handbags and accessories manufacturing business is positioned as a core future growth driver, supported by the completed acquisition of a small factory in Vietnam[21](index=21&type=chunk) [Cash Return and Financial Position](index=9&type=section&id=3.4%20%E7%8F%BE%E9%87%91%E5%9B%9E%E9%A5%8B%E8%88%87%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81) The company maintains a strong financial position and commits to significant shareholder returns through dividends and buybacks - The Board recommends an interim dividend of **52 HK cents per ordinary share**, maintaining a payout ratio of approximately 70%[22](index=22&type=chunk) - The company commits to returning up to an additional **$60 million** in cash to shareholders annually in 2025 and 2026, on top of regular dividends, through share buybacks and special dividends[22](index=22&type=chunk) - The significant decrease in net cash inflow from operating activities was mainly due to changes in working capital, including an increase in inventories and a lower base of accounts receivable[24](index=24&type=chunk) Liquidity and Capital Structure | Indicator | Jun 30, 2025 (USD thousands) | Dec 31, 2024 (USD thousands) | Jun 30, 2024 (USD thousands) | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 350,800 | 423,500 | 334,600 | | Net Cash Inflow from Operations (H1) | 3,900 | N/A | 99,200 | | Net Cash Outflow from Investing (H1) | 25,300 | N/A | 15,700 | | Current Assets | 916,300 | 893,200 | N/A | | Current Liabilities | 327,700 | 279,100 | N/A | | Current Ratio | 2.8 | 3.2 | N/A | | Bank Borrowings | 59,500 | 5,900 | N/A | | Net Cash Position | 291,300 | 417,600 | 326,100 | | Net Gearing Ratio | -26.6% | -29.6% | -29.6% | [Other Operational Information](index=10&type=section&id=3.5%20%E5%85%B6%E4%BB%96%E8%BF%90%E8%90%A5%E4%BF%A1%E6%81%AF) The company manages foreign exchange risk, has minimal liabilities, and focuses on human capital development - The primary foreign exchange risk is the conversion of RMB and HKD to the Group's functional currency, the USD[29](index=29&type=chunk) - As of June 30, 2025, the value of pledged assets was **$10.8 million**, and there were no contingent liabilities[30](index=30&typechunk)[31](index=31&type=chunk) - There were no major acquisitions or disposals during the reporting period, but the acquisition of a small handbag and accessories factory in Vietnam was completed in July 2025[32](index=32&type=chunk) - As of June 30, 2025, the Group had approximately 43,400 direct employees and a total workforce of about 65,000, with a focus on developing its management team through programs like the "Leadership Program"[36](index=36&type=chunk) [Interim Dividend](index=11&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) [Details of Interim Dividend Declaration](index=11&type=section&id=4.1%20%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF%E5%AE%A3%E6%B4%BE%E8%AF%A6%E6%83%85) The Board declared an interim dividend of 52 HK cents per share, payable in September 2025 - The Board of Directors resolved to declare an interim dividend of **52 HK cents per ordinary share**[37](index=37&type=chunk) - The interim dividend will be paid on **September 19, 2025**, with the record date being September 9, 2025[37](index=37&type=chunk) - The register of members will be closed from September 5 to September 9, 2025, inclusive[37](index=37&type=chunk) [Independent Review Report](index=12&type=section&id=%E7%8D%A8%E7%AB%8B%E5%AF%A9%E9%96%B1%E5%A0%B1%E5%91%8A) [Scope of Review and Conclusion](index=12&type=section&id=5.1%20%E5%AE%A1%E9%98%85%E8%8C%83%E5%9B%B4%E4%B8%8E%E7%BB%93%E8%AE%BA) Ernst & Young's review found no material misstatements in the interim financial information - Ernst & Young has reviewed the interim financial information; the scope of a review is less than an audit, and no audit opinion is expressed[38](index=38&type=chunk)[39](index=39&type=chunk) - Nothing has come to their attention that causes them to believe that the interim financial information is not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34[40](index=40&type=chunk) [Interim Financial Statements](index=13&type=section&id=%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=13&type=section&id=6.1%20%E4%B8%AD%E6%9C%9F%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E6%8D%9F%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) The company reported a profit of $78.1 million for the six-month period ending June 30, 2025 H1 2025 Consolidated Statement of Profit or Loss Summary | Indicator | H1 2025 (USD thousands) | H1 2024 (USD thousands) | | :--- | :--- | :--- | | Revenue | 775,074 | 770,011 | | Cost of Sales | (599,916) | (571,128) | | Gross Profit | 175,158 | 198,883 | | Operating profit before fair value changes | 84,724 | 99,052 | | Profit before tax | 91,869 | 105,393 | | Income tax expense | (13,752) | (13,879) | | Profit for the period | 78,117 | 91,514 | | Basic earnings per share (US cents) | 9.5 | 11.5 | | Diluted earnings per share (US cents) | 9.3 | 11.2 | - Other comprehensive loss for the period was primarily due to an exchange difference of **$265 thousand** on the translation of foreign operations[42](index=42&type=chunk) [Interim Condensed Consolidated Statement of Financial Position](index=14&type=section&id=6.2%20%E4%B8%AD%E6%9C%9F%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5%E8%A1%A8) The company's net assets stood at $1.10 billion as of June 30, 2025, reflecting a solid financial position Consolidated Statement of Financial Position Summary as of June 30, 2025 | Indicator | Jun 30, 2025 (USD thousands) | Dec 31, 2024 (USD thousands) | | :--- | :--- | :--- | | Total non-current assets | 537,139 | 530,125 | | Total current assets | 916,307 | 893,241 | | Total current liabilities | 327,690 | 279,146 | | Net current assets | 588,617 | 614,095 | | Total assets less current liabilities | 1,125,756 | 1,144,220 | | Total non-current liabilities | 29,779 | 26,681 | | Net assets | 1,095,977 | 1,117,539 | | Total equity | 1,095,977 | 1,117,539 | - The current ratio of **2.8** indicates the Group's high liquidity and sound financial position[25](index=25&type=chunk) [Interim Condensed Consolidated Statement of Cash Flows](index=16&type=section&id=6.3%20%E4%B8%AD%E6%9C%9F%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) Net cash from operating activities decreased significantly in H1 2025, leading to a reduction in total cash reserves H1 2025 Consolidated Statement of Cash Flows Summary | Indicator | H1 2025 (USD thousands) | H1 2024 (USD thousands) | | :--- | :--- | :--- | | Net cash from operating activities | 3,906 | 99,178 | | Net cash used in investing activities | (25,264) | (15,689) | | Net cash used in financing activities | (48,931) | (42,809) | | Net (decrease)/increase in cash | (70,289) | 40,680 | | Cash and cash equivalents at end of period | 350,786 | 334,585 | - The sharp decrease in net cash from operating activities was mainly due to a **negative change in working capital of $106.3 million**, compared to a negative change of $27.0 million in the prior year period[24](index=24&type=chunk)[45](index=45&type=chunk) [Notes to the Financial Statements](index=17&type=section&id=6.4%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%99%84%E6%B3%A8) The notes provide detailed disclosures on accounting policies, segment information, revenue breakdown, and other financial items - The Group has two reportable operating segments: the **Manufacturing segment** (sales and manufacturing of footwear and handbags) and the **Retail and Wholesale segment** (sales of self-developed branded products)[48](index=48&type=chunk)[52](index=52&type=chunk) - Total share option expenses for the six months ended June 30, 2025, amounted to **$175 thousand** (H1 2024: $890 thousand)[94](index=94&type=chunk)[97](index=97&type=chunk)[91](index=91&type=chunk)[88](index=88&type=chunk)[84](index=84&type=chunk) - As of June 30, 2025, the Group's bank borrowings were **$59.542 million**, primarily denominated in NTD, HKD, and USD, with effective interest rates ranging from 1.05% to 5%[73](index=73&type=chunk) - The total remuneration for key management personnel of the Group for the six months ended June 30, 2025, was **$762 thousand** (H1 2024: $871 thousand)[102](index=102&type=chunk) H1 2025 Revenue by Geographical Market | Geographical Market | Revenue (USD thousands) | Percentage | | :--- | :--- | :--- | | North America | 377,120 | 48.7% | | Europe | 181,314 | 23.4% | | People's Republic of China ("PRC") | 119,990 | 15.5% | | Asia (excluding PRC) | 69,743 | 9.0% | | Others | 26,907 | 3.4% | | **Total** | **775,074** | **100%** | [Disclosure of Interests](index=39&type=section&id=%E6%AC%8A%E7%9B%8A%E6%8A%AB%E9%9C%B2) [Interests of Directors and Chief Executive](index=39&type=section&id=7.1%20%E8%91%A3%E4%BA%8B%E5%8F%8A%E6%9C%80%E9%AB%98%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%91%98%E6%9D%83%E7%9B%8A) Directors' and the chief executive's interests in the company's shares and underlying shares have been disclosed Total Long Positions of Directors and Chief Executive in Shares and Underlying Shares (June 30, 2025) | Director | Number of Shares | Number of Underlying Shares (Options) | Total | Approx. % of Shareholding | | :--- | :--- | :--- | :--- | :--- | | CHAN Fu Keung | 100,000 | – | 100,000 | 0.01% | | CHAN Li-Ming | 28,769,227 | – | 28,769,227 | 3.44% | | CHAI Yue-Sun | 2,783,500 | 4,449,500 | 7,233,000 | 0.86% | | CHIANG Yi-Min | 53,547,418 | 3,479,500 | 59,780,067 | 7.14% | | Gillman Christopher Charles | – | 2,029,500 | 2,029,500 | 0.24% | - Mr. CHIANG Yi-Min's interest includes a spousal interest (2,753,149 shares, which ceased to be deemed an interest on July 2, 2025) and a family interest (52,747,418 shares)[114](index=114&type=chunk) [Interests of Substantial Shareholders and Other Persons](index=41&type=section&id=7.2%20%E4%B8%BB%E8%A6%81%E8%82%A1%E4%B8%9C%E5%8F%8A%E5%85%B6%E4%BB%96%E4%BA%BA%E5%A3%AB%E6%9D%83%E7%9B%8A) Cordwalner Bonaventure Inc. is the largest substantial shareholder with a 20.73% stake in the company Long Positions of Substantial Shareholders in the Company's Shares (June 30, 2025) | Name | Number of Shares | Approx. % of Shareholding | | :--- | :--- | :--- | | Cordwalner Bonaventure Inc. | 173,508,593 | 20.73% | | Chiang Family (PTC) Limited | 52,747,418 | 6.30% | | Merci Capital Limited | 52,747,418 | 6.30% | | CHIANG Chih-Kang | 53,078,918 | 6.34% | - Mr. CHIANG Chih-Kang holds shares indirectly through a trust he founded (Chiang Family (PTC) Limited) and Merci Capital Limited, in addition to a direct holding of 331,500 shares[118](index=118&type=chunk) [Corporate Governance](index=42&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) [Compliance with the Corporate Governance Code](index=42&type=section&id=8.1%20%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%88%99%E9%81%B5%E5%AE%88%E6%83%85%E5%86%B5) The company maintained full compliance with the Corporate Governance Code throughout the first half of 2025 - The company has complied with all provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules throughout the first half of 2025[119](index=119&type=chunk) - The company advocates a model that combines corporate governance with business governance to enhance accountability and assurance to shareholders[120](index=120&type=chunk) - All directors have confirmed their compliance with the Model Code for Securities Transactions by Directors of Listed Issuers throughout the first half of 2025[121](index=121&type=chunk) [Other Information](index=43&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) [Events After the Reporting Period](index=43&type=section&id=9.1%20%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%90%8E%E4%BA%8B%E9%A1%B9) No significant events affecting the Group occurred after the reporting period - From the end of the reporting period until the date of this interim report, no events have occurred that would have a material impact on the Group[122](index=122&type=chunk) [Share-based Payment Schemes](index=43&type=section&id=9.2%20%E8%82%A1%E4%BB%BD%E6%94%AF%E4%BB%98%E8%AE%A1%E5%88%92) The company has adopted new share option and award schemes in 2024 to replace its terminated 2017 plan - The 2017 Share Option Scheme was terminated on May 9, 2024, but options granted prior to termination remain exercisable under their original terms[123](index=123&type=chunk)[132](index=132&type=chunk) - The 2024 Share Option Scheme aims to reward employees, attract and retain talent, and promote long-term financial and business performance[146](index=146&type=chunk) - The 2024 Share Award Scheme will use existing shares for awards, requiring no new share issuance and no shareholder approval under Chapter 17 of the Listing Rules[157](index=157&type=chunk) - As of the date of this interim report, no options or share awards have been granted under the 2024 Share Option Scheme or the 2024 Share Award Scheme[156](index=156&type=chunk)[161](index=161&type=chunk) Summary of Outstanding Options under the 2017 Scheme (June 30, 2025) | Option Type | Exercise Price (HKD) | Outstanding (Options) | | :--- | :--- | :--- | | April 2020 Options | 8.71 | 468,000 | | November 2020 Options | 9.15 | 3,899,000 | | March 2021 Options | 9.46 | 6,000,000 | | January 2022 Options | 9.10 | 6,965,000 | | March 2023 Options | 7.65 | 8,695,000 | | **Total** | **-** | **26,027,000** | [Review and Dealings in Company Securities](index=56&type=section&id=9.3%20%E5%AE%A1%E9%98%85%E4%B8%8E%E5%85%AC%E5%8F%B8%E8%AF%81%E5%88%B8%E4%BA%A4%E6%98%93) The Audit Committee has reviewed the interim results, and the company did not trade its own securities - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the reporting period[163](index=163&type=chunk) - The Audit Committee has reviewed the Group's interim results and the accounting principles and practices adopted, with no disagreements[164](index=164&type=chunk) [Corporate Information](index=56&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) [Board of Directors and Committee Composition](index=57&type=section&id=10.1%20%E8%91%A3%E4%BA%8B%E4%BC%9A%E4%B8%8E%E5%A7%94%E5%91%98%E4%BC%9A%E6%9E%84%E6%88%90) The company's governance structure includes a Board of Directors and five specialized committees - The Board of Directors includes Executive Directors such as Chairman CHAN Li-Ming and CEO CHAI Yue-Sun, and Independent Non-executive Directors including Peter BOLLIGER, CHAN Fu Keung, YU Chao-Tang, and WAN Sin Yi[165](index=165&type=chunk) - The company has established an Audit Committee, Corporate Governance Committee, Executive Committee, Nomination Committee, and Remuneration Committee, each with a designated chairman and members[165](index=165&type=chunk) [Basic Corporate Information](index=57&type=section&id=10.2%20%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E4%BF%A1%E6%81%AF) This section provides key corporate details including officers, advisors, and stock information - The Chief Financial Officer is TAM Shiu Ming, and the Company Secretary is KAN Siu Yim[165](index=165&type=chunk) - The legal advisor is Chiu & Partners, and the auditor is Ernst & Young[166](index=166&type=chunk) - Principal bankers include CTBC Bank Co, Ltd, The Hongkong and Shanghai Banking Corporation Limited, and Citibank Taiwan, Ltd[166](index=166&type=chunk) - The company's stock code is 1836, and its website is www.stella.com.hk[167](index=167&type=chunk)