股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年9月30日 狀態: 新提交 致：香港交易及結算所有限公司 FF301 FF301 II. 已發行股份及/或庫存股份變動 公司名稱: 曠世芳香控股有限公司 呈交日期: 2025年10月3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) | 01925 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | HKD | | 0.001 HKD | | 10,000,000 | | 增加 / 減少 (-) | | | | | | HKD | | | | 本月底結存 | | | 10,000,000,000 | HKD | | 0.001 HKD | | 10,00 ...

KWUNG'S AROMA HOLDINGS LIMITED 曠世芳香控股有限公司 (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：1925） NOTIFICATION LETTER 通知信函 Dear Non-Registered Shareholders, Kwung's Aroma Holdings Limited (the "Company") – Notice of publication of 2025 Interim Report (the "Current Corporate Communication") The English and Chinese versions of the Company's Current Corporate Communications are available on the Company's website at www.kwungs.com and the website of The Stock Exchange ...

KWUNG'S AROMA HOLDINGS LIMITED 曠世芳香控股有限公司 (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：1925） NOTIFICATION LETTER 通知信函 Dear Registered Shareholders, Kwung's Aroma Holdings Limited (the "Company") – Notice of publication of 2025 Interim Report (the "Current Corporate Communication") The English and Chinese versions of the Company's Current Corporate Communications are now available on the Company's website at www.kwungs.com and the website of The Stock Exchange ...

[Definitions](index=6&type=section&id=Definition) This section provides definitions for key terms and abbreviations used throughout the report to ensure clear understanding - The report defines key terms including 'Board', 'China', 'Company', 'Directors', 'Group', 'HKD', 'Hong Kong', 'Listing Rules', 'Model Code', 'RMB', 'SFO', 'Shares', 'Shareholders', 'Stock Exchange', and 'USD' to ensure clear understanding of the report content[7](index=7&type=chunk)[8](index=8&type=chunk)[11](index=11&type=chunk) [Corporate Information](index=8&type=section&id=Corporate%20information) This chapter outlines the company's board members, committee structures, key personnel, and principal places of business - The Board of Directors includes executive directors Mr. Jin Jianxin (Chairman) and Mr. Tian Dong, and independent non-executive directors Mr. Li Zhenyu, Ms. Xu Qiong, and Mr. Zhou Kai. Mr. Shao Ping resigned as a non-executive director on July 7, **2025**[13](index=13&type=chunk)[14](index=14&type=chunk) - Mr. Li Zhenyu chairs the Audit Committee, Ms. Xu Qiong was appointed as a member on July 7, **2025**, and Mr. Shao Ping resigned on the same day. Mr. Zhou Kai chairs the Remuneration Committee, and Ms. Xu Qiong chairs the Nomination Committee[13](index=13&type=chunk)[14](index=14&type=chunk)[15](index=15&type=chunk) - Mr. Liu Zhongwei serves as Company Secretary, and PricewaterhouseCoopers is the external auditor. The company has its registered office in the Cayman Islands and principal places of business in Hong Kong and China[13](index=13&type=chunk)[14](index=14&type=chunk)[16](index=16&type=chunk)[17](index=17&type=chunk) [Management Discussion and Analysis](index=10&type=section&id=Management%20discussion%20and%20analysis) This chapter analyzes the Group's business performance, recent developments, financial position, and changes in key financial indicators [Business Review](index=10&type=section&id=BUSINESS%20REVIEW) The Group designs and manufactures home decor and fragrance products, expanding production capacity in China and overseas to enhance efficiency - The Group provides design and manufacturing solutions for home decor and home fragrance products, with core offerings being scented candles and diffusers[20](index=20&type=chunk)[24](index=24&type=chunk) - The Yinzhou plant has been operational since **2020**, equipped with advanced automation and implementing 'informatization' to enhance production efficiency and shorten lead times[21](index=21&type=chunk)[24](index=24&type=chunk) - The Wuhu production base became operational in the first half of **2025** with a building area of approximately **87,000 square meters**. Additionally, Vietnam production facilities are in use, and new facilities in Thailand are under construction, indicating active overseas capacity expansion[22](index=22&type=chunk)[23](index=23&type=chunk)[24](index=24&type=chunk) [Recent Developments](index=11&type=section&id=RECENT%20DEVELOPMENT) The EU imposed a **70.9% provisional anti-dumping duty** on Chinese candles, significantly impacting the Group's revenue and profit, with legal advice being sought - The European Commission announced on August 13, **2025**, the imposition of a **70.9% provisional anti-dumping duty** on candle products originating from China[26](index=26&type=chunk)[30](index=30&type=chunk) - Given that over **50% of the Group's sales** are from candle product orders by customers in EU member states, the Board believes the provisional duty may significantly impact the Group's overall revenue and profit[26](index=26&type=chunk)[30](index=30&type=chunk) - The European Commission stated that the findings on the provisional duty rate are temporary and may be revised during the final stage of the anti-dumping investigation. The Group is seeking legal advice regarding the provisional duty[26](index=26&type=chunk)[30](index=30&type=chunk) [Financial Review](index=11&type=section&id=FINANCIAL%20REVIEW) The Group's H1 **2025** financial performance showed modest revenue growth, declining profitability, and shifts in key balance sheet items [Revenue](index=11&type=section&id=Revenue) The Group's revenue grew by **6.7%** in H1 **2025**, mainly due to organic growth from existing customer orders Revenue Overview | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (RMB million) | Growth Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | 356.6 | 334.2 | 22.4 | 6.7% | - Revenue growth was primarily attributable to increased purchase orders from existing customers, leading to organic business growth[28](index=28&type=chunk)[31](index=31&type=chunk) [Gross Profit and Gross Profit Margin](index=11&type=section&id=Gross%20profit%20and%20gross%20profit%20margin) Gross profit margin slightly decreased from **24.4% to 23.3%**, primarily due to the diminishing positive impact of RMB depreciation in the prior period Gross Profit Margin Change | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Gross Profit Margin | 23.3% | 24.4% | - The decrease in gross profit margin was mainly due to the positive impact of RMB depreciation against the USD in H1 **2024** no longer being significant in the current period[29](index=29&type=chunk)[32](index=32&type=chunk) [Other Income](index=12&type=section&id=Other%20income) Other income primarily includes tax incentives for high-tech enterprises, government grants, and net income from bulk raw material sales - Other income primarily includes tax incentives for high-tech enterprises in China, government grants, and net income from bulk sales of raw materials to other market participants[34](index=34&type=chunk)[40](index=40&type=chunk) [Administrative Expenses](index=12&type=section&id=Administrative%20expenses) Administrative expenses increased by **17.9%** to **RMB 51.2 million**, driven by higher staff and payroll costs for business growth and Wuhu operations Administrative Expenses Change | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (RMB million) | Growth Rate | | :--- | :--- | :--- | :--- | :--- | | Administrative Expenses | 51.2 | 43.4 | 7.8 | 17.9% | - The increase in administrative expenses was mainly due to higher staff numbers and payroll costs required to support business growth and the operation of the Wuhu production base[36](index=36&type=chunk)[41](index=41&type=chunk) [Selling and Marketing Expenses](index=12&type=section&id=Selling%20and%20marketing%20expenses) Selling and marketing expenses decreased by **10.4%** to **RMB 17.1 million**, primarily due to effective cost-saving measures implemented by the Group Selling and Marketing Expenses Change | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Selling and Marketing Expenses | 17.1 | 19.0 | (2.0) | -10.4% | - The decrease in selling and marketing expenses was attributable to effective cost-saving measures implemented by the Group[38](index=38&type=chunk)[42](index=42&type=chunk) [Other Net Gains](index=12&type=section&id=Other%20gain) Other net gains significantly decreased by **85.8%** to **RMB 4.3 million**, mainly due to a one-off gain from subsidiary disposal in H1 **2024** Other Net Gains Change | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Other Net Gains | 4.3 | 30.0 | (25.7) | -85.8% | - The decrease in balance was mainly due to a one-off gain of approximately **RMB 21.7 million** from the disposal of a subsidiary in H1 **2024**[45](index=45&type=chunk)[51](index=51&type=chunk) - Other income for the period primarily included fair value gains on fund investments of approximately **RMB 3.4 million** and foreign exchange gains of approximately **RMB 0.9 million**[39](index=39&type=chunk)[43](index=43&type=chunk) [Finance Income and Finance Costs](index=13&type=section&id=Finance%20income%20and%20finance%20costs) Finance income decreased due to lower deposit rates, while finance costs increased as the Group secured more cost-effective borrowings amid falling interest rates - The decrease in finance income was mainly due to financial institutions lowering interest rates on deposits placed with them[47](index=47&type=chunk)[52](index=52&type=chunk) - The increase in finance costs was mainly due to the Group arranging more borrowings from financial institutions at lower interest rates, making the financial arrangements more cost-effective[47](index=47&type=chunk)[52](index=52&type=chunk) [Income Tax Expenses](index=13&type=section&id=Income%20tax%20expenses) Income tax expenses decreased by **51.9%** to **RMB 3.7 million**, consistent with the Group's decline in profit before tax Income Tax Expenses Change | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Income Tax Expenses | 3.7 | 7.7 | (4.0) | -51.9% |

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: 曠世芳香控股有限公司 呈交日期: 2025年9月2日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01925 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | HKD | | 0.001 | HKD | | 10,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 10,000,000,000 | HKD | | 0.001 | HKD | | 10,000,000 | 本月底法定/ ...

Group 1 - The company, Kwansei Fragrance (01925.HK), reported a revenue of RMB 357 million for the six months ending June 30, 2025, representing a year-on-year increase of 6.7% [1] - The gross profit for the same period was RMB 83.187 million, which is a year-on-year increase of 2.1% [1] - The profit attributable to the owners of the company was RMB 22.54 million, showing a significant year-on-year decrease of 55.7% [1] - The basic earnings per share were RMB 0.056 [1]

Group 1 - The company reported a revenue of RMB 357 million for the six months ending June 30, 2025, representing a year-on-year increase of 6.7% [1] - Shareholder profit amounted to RMB 22.54 million, which is a decrease of 55.7% compared to the previous year [1] - Earnings per share were reported at 5.6 cents [1]

Core Viewpoint - The company reported a revenue of RMB 357 million for the six months ending June 30, 2025, reflecting a year-on-year growth of 6.7% [1] - However, the profit attributable to shareholders decreased by 55.7% to RMB 22.54 million, resulting in an earnings per share of 5.6 cents [1] Financial Performance - Revenue for the period was RMB 357 million, which is an increase of 6.7% compared to the previous year [1] - The profit attributable to shareholders was RMB 22.54 million, showing a significant decline of 55.7% year-on-year [1] - Earnings per share stood at 5.6 cents [1]

[Company Announcement Information](index=1&type=section&id=Company%20Announcement%20Information) This section covers disclaimers, company basic information, and the board's announcement regarding the unaudited interim results [Disclaimer](index=1&type=section&id=Disclaimer) The Stock Exchange of Hong Kong Limited and Hong Kong Exchanges and Clearing Limited disclaim responsibility for this announcement's content, accuracy, or completeness, and any loss arising from it - Hong Kong Exchanges and the Stock Exchange are not responsible for the content of this announcement, do not guarantee its accuracy or completeness, and assume no liability for any loss arising from reliance on its contents[1](index=1&type=chunk) [Company Basic Information](index=1&type=section&id=Company%20Basic%20Information) This announcement is issued by KWUNG'S AROMA HOLDINGS LIMITED (stock code: 1925), incorporated in the Cayman Islands, regarding results for the six months ended June 30, 2025 - The company name is KWUNG'S AROMA HOLDINGS LIMITED (曠世芳香控股有限公司), stock code **1925**, incorporated in the Cayman Islands[2](index=2&type=chunk) [Announcement Statement](index=1&type=section&id=Announcement%20Statement) The Board announces the Group's unaudited interim results for the six months ended June 30, 2025 - The Board announces the unaudited interim results for the six months ended June 30, 2025[3](index=3&type=chunk) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) For the six months ended June 30, 2025, revenue increased by 6.7% year-on-year, but gross margin decreased by 1.1 percentage points to 23.3%, with total comprehensive income attributable to owners and EPS both significantly down by 55.7%, and no dividend declared Financial Performance Summary | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 356,592 | 334,205 | 6.7% | | Gross Profit | 83,187 | 81,505 | 2.1% | | Gross Margin | 23.3% | 24.4% | (1.1%) | | Total Comprehensive Income Attributable to Owners of the Company | 22,540 | 50,881 | (55.7%) | | Earnings Per Share (Basic and Diluted) | 5.6 (RMB cents) | 12.6 (RMB cents) | (55.7%) | | Dividends Declared for the Period | – (HKD) | 0.09 (HKD) | (100%) | [Management Discussion and Analysis](index=2&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews business operations, recent developments including EU anti-dumping duties, and a detailed financial analysis of revenue, expenses, assets, and liabilities [Business Review](index=2&type=section&id=Business%20Review) The Group provides design and manufacturing solutions for home decor and home fragrance products, focusing on candles and diffusers, while enhancing production efficiency and expanding global manufacturing facilities in Wuhu, Vietnam, and planning for Thailand - The Group provides design and manufacturing solutions for home decor and home fragrance products to customers, with core products including home fragrance candles and home fragrance diffusers[5](index=5&type=chunk) - The Yinzhou plant, operational since 2020, is equipped with advanced automated production equipment and improved logistics solutions, enhancing production efficiency and shortening production time through "informatization" of the supply chain and production cycle[5](index=5&type=chunk) - The Wuhu production base commenced operations during the six months ended June 30, 2025, with a total site area of approximately **96,000 square meters** and a building area of approximately **87,000 square meters**[6](index=6&type=chunk) - The Group has completed the construction and commenced operations of its Vietnam production facility and is currently planning new production facilities in Thailand to expand its overseas production capacity[6](index=6&type=chunk) [Recent Developments](index=2&type=section&id=Recent%20Developments) The European Commission imposed a 70.9% provisional anti-dumping duty on candles originating from China on August 13, 2025, which is expected to impact the Group's revenue and profit, as over 50% of its sales are from EU customers - The European Commission imposed a **70.9% provisional anti-dumping duty** on imports of candles, tealights, and similar products originating from China on August 13, 2025[7](index=7&type=chunk) - The provisional duty may impact the Group's overall revenue and profit, as over **50% of its sales volume** is derived from orders for candle products placed by customers in EU member states[7](index=7&type=chunk) - The Group is seeking legal advice regarding the provisional duty and will make further announcements as appropriate[7](index=7&type=chunk) [Financial Review](index=3&type=section&id=Financial%20Review) Revenue grew 6.7% due to increased existing customer orders, but gross margin declined as the RMB depreciation effect weakened; administrative expenses rose due to expansion, while selling and marketing expenses decreased from cost-saving measures; other income significantly dropped due to a non-recurring gain, finance income decreased, and finance costs increased, with income tax expense aligning with lower profit before tax; assets like property, plant, and equipment and inventories increased, while trade receivables decreased due to enhanced credit control; trade and other payables decreased, and borrowings increased for working capital due to lower interest rates [Revenue](index=3&type=section&id=Revenue) For the six months ended June 30, 2025, the Group's revenue, primarily from candle products, home fragrance products, home decor, and wax trading, increased by 6.7% year-on-year, mainly due to increased orders from existing customers Revenue Performance | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 356.6 | 334.2 | 6.7% | - Revenue increase was primarily due to an increase in purchase orders from existing customers, leading to some organic business growth[8](index=8&type=chunk) [Gross Profit and Gross Margin](index=3&type=section&id=Gross%20Profit%20and%20Gross%20Margin) The Group's gross margin slightly decreased from 24.4% in the prior period to 23.3%, mainly because the positive impact of RMB depreciation against the USD in 2024 diminished in the current period Gross Margin Trend | Indicator | 2025 | 2024 | Change (percentage points) | | :--- | :--- | :--- | :--- | | Gross Margin | 23.3% | 24.4% | (1.1%) | - Gross margin decrease was mainly due to the diminishing positive impact on gross margin from the depreciation of RMB against the USD in 2024, as customer orders are denominated in USD while suppliers are settled in RMB[9](index=9&type=chunk) [Other Income](index=3&type=section&id=Other%20Income) The Group's other income, including high-tech enterprise tax incentives, government grants, and net income from bulk raw material sales, significantly decreased by 85.8% to RMB 4.3 million this period, primarily due to a non-recurring gain of approximately RMB 21.7 million from the disposal of a subsidiary in the prior period - Other income primarily includes tax incentives for high-tech enterprises in China, government grants in China, and net income from bulk sales of raw materials to other market participants[10](index=10&type=chunk) Other Income Trend | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Other Income | 4.3 | 30.0 | (85.8%) | - Other income decrease was mainly due to a non-recurring gain of approximately **RMB 21.7 million** from the disposal of a subsidiary (holding certain land and properties in Ningbo, Zhejiang Province, China) in the corresponding period of 2024[14](index=14&type=chunk) [Administrative Expenses](index=3&type=section&id=Administrative%20Expenses) Administrative expenses, mainly comprising salary costs, R&D raw material costs, depreciation, and utilities, increased by 17.9% year-on-year to RMB 51.2 million this period, primarily due to increased staff numbers and remuneration costs to support business growth and Wuhu production base operations Administrative Expenses Trend | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 51.2 | 43.4 | 17.9% | - Administrative expenses increase was mainly due to an increase in staff numbers and remuneration costs required to support business growth and the operations of the Wuhu production base[12](index=12&type=chunk) [Selling and Marketing Expenses](index=4&type=section&id=Selling%20and%20Marketing%20Expenses) Selling and marketing expenses, including sales department wages, sample inspection and courier fees, agent commissions, advertising, and retail store operating costs, decreased by 10.4% year-on-year to RMB 17.1 million this period, primarily due to effective cost-saving measures implemented by the Group Selling and Marketing Expenses Trend | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Selling and Marketing Expenses | 17.1 | 19.0 | (10.4%) | - Selling and marketing expenses decrease was attributable to effective cost-saving measures adopted by the Group[13](index=13&type=chunk) [Finance Income and Finance Costs](index=4&type=section&id=Finance%20Income%20and%20Finance%20Costs) Finance income, representing interest from financial institutions, decreased due to lower deposit rates, while finance costs, comprising bank loan interest and lease-related interest, increased as the Group arranged more borrowings for cost-effectiveness given the lower interest rates - Finance income decrease during the period was mainly due to financial institutions lowering interest rates on deposits placed with them[15](index=15&type=chunk) - Finance costs increase during the period was mainly due to the Group arranging more borrowings from financial institutions given the decrease in interest rates during the period, making the financial arrangements more cost-effective[15](index=15&type=chunk) [Income Tax Expense](index=5&type=section&id=Income%20Tax%20Expense) The Group's income tax expense decreased by 51.9% year-on-year to RMB 3.7 million, consistent with the decrease in profit before tax for the period Income Tax Expense Trend | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Income Tax Expense | 3.7 | 7.7 | (51.9%) | - Income tax expense decrease was consistent with the decrease in the Group's profit before tax for the six months ended June 30, 2025[16](index=16&type=chunk) [Property, Plant and Equipment](index=5&type=section&id=Property%2C%20Plant%20and%20Equipment) The net book value of the Group's property, plant and equipment increased by approximately RMB 18.5 million this period, primarily due to the net effect of construction costs for the Wuhu production base and depreciation expenses - The net book value of property, plant and equipment increased by approximately **RMB 18.5 million** for the six months ended June 30, 2025[17](index=17&type=chunk) - The increase was mainly due to the net effect of construction costs for the Wuhu production base and depreciation expenses for the six months ended June 30, 2025[17](index=17&type=chunk) [Right-of-Use Assets](index=5&type=section&id=Right-of-Use%20Assets) The net book value of the Group's right-of-use assets decreased by approximately RMB 7.5 million this period, primarily due to amortization expenses for land use rights and the book value of leased properties - The net book value of right-of-use assets decreased by approximately **RMB 7.5 million** for the six months ended June 30, 2025[18](index=18&type=chunk) - The decrease was mainly due to amortization expenses for land use rights and the book value of leased properties during the period[18](index=18&type=chunk) [Inventories](index=6&type=section&id=Inventories) The Group's inventory balance increased by 34.3% from approximately RMB 101.3 million as of December 31, 2024, to approximately RMB 136.1 million as of June 30, 2025, mainly due to finished goods awaiting delivery and increased raw material inventory for Q3 2025 production plans Inventory Balance | Indicator | June 30, 2025 (RMB millions) | December 31, 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Inventory Balance | 136.1 | 101.3 | 34.3% | - Inventory increase was mainly due to a portion of finished goods awaiting delivery to customers as of June 30, 2025, and an increase in raw material inventories for upcoming production plans in the third quarter of 2025[19](index=19&type=chunk) [Trade Receivables](index=6&type=section&id=Trade%20Receivables) The trade receivables balance decreased by 17.7% from approximately RMB 166.9 million as of December 31, 2024, to approximately RMB 137.3 million as of June 30, 2025, primarily due to enhanced credit control for customers, with a small impairment provision of approximately RMB 2.5 million made this period Trade Receivables (before impairment) | Indicator | June 30, 2025 (RMB millions) | December 31, 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Trade Receivables (before impairment) | 137.3 | 166.9 | (17.7%) | - Trade receivables balance decrease was due to enhanced credit control over the Group's customers[20](index=20&type=chunk) - As of June 30, 2025, the Group made a small impairment provision for trade receivables of approximately **RMB 2.5 million**[20](index=20&type=chunk) [Prepayments, Deposits and Other Receivables](index=6&type=section&id=Prepayments%2C%20Deposits%20and%20Other%20Receivables) The balance of prepayments, deposits, and other receivables decreased by 50.1% from approximately RMB 84.0 million as of December 31, 2024, to approximately RMB 41.9 million as of June 30, 2025, mainly due to an increase in refundable VAT from export sales as of December 31, 2024 Prepayments, Deposits and Other Receivables Balance | Indicator | June 30, 2025 (RMB millions) | December 31, 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Prepayments, Deposits and Other Receivables | 41.9 | 84.0 | (50.1%) | - Decrease was mainly due to an increase in refundable value-added tax arising from export sales as of December 31, 2024[21](index=21&type=chunk) [Financial Assets at Fair Value Through Profit or Loss](index=6&type=section&id=Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) The Group invested RMB 100 million in Chinese private equity funds using idle cash, which generated a fair value gain of approximately RMB 3.4 million for the six months ended June 30, 2025 - The Group used idle cash to subscribe for Chinese private equity funds totaling **RMB 100 million**[22](index=22&type=chunk) - For the six months ended June 30, 2025, investments in these private equity funds recorded a fair value gain of approximately **RMB 3.4 million**[22](index=22&type=chunk) [Cash and Cash Equivalents](index=6&type=section&id=Cash%20and%20Cash%20Equivalents) The Group maintains sufficient cash and bank balances to support its manufacturing and sales operations and the construction of overseas production facilities - The Group maintains sufficient cash and bank balances to support its manufacturing and sales operations and the construction of overseas production facilities[24](index=24&type=chunk) [Trade and Other Payables](index=7&type=section&id=Trade%20and%20Other%20Payables) The balance of trade and other payables decreased from approximately RMB 164.3 million as of December 31, 2024, to approximately RMB 133.8 million as of June 30, 2025, primarily due to a reduction in payables related to the construction of the Wuhu production base Trade and Other Payables Balance | Indicator | June 30, 2025 (RMB millions) | December 31, 2024 (RMB millions) | Change (RMB millions) | | :--- | :--- | :--- | :--- | | Trade and Other Payables | 133.8 | 164.3 | (30.5) | - Decrease was mainly due to a reduction in payables arising from the construction of the Wuhu production base[25](index=25&type=chunk) [Borrowings](index=7&type=section&id=Borrowings) The Group obtains debt financing through bank borrowings for general working capital, arranging more borrowings this period due to lower interest rates to enhance the cost-effectiveness of financial arrangements - The Group obtains debt financing through bank borrowings to fund its general working capital[26](index=26&type=chunk) - For the six months ended June 30, 2025, the Group arranged more borrowings due to lower interest rates, and supplementing general working capital through debt financing was considered more cost-effective for supporting the Group's organic growth of existing businesses[26](index=26&type=chunk) [Financial Information](index=8&type=section&id=Financial%20Information) This section presents the condensed interim consolidated statement of comprehensive income and the condensed interim consolidated statement of financial position [Condensed Interim Consolidated Statement of Comprehensive Income](index=8&type=section&id=Condensed%20Interim%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's revenue increased, but profit for the period and profit attributable to owners significantly decreased due to higher administrative expenses, a substantial reduction in net other income, and a shift from net finance income to net finance costs Condensed Interim Consolidated Statement of Comprehensive Income | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 356,592 | 334,205 | | Cost of sales | (273,405) | (252,700) | | Gross Profit | 83,187 | 81,505 | | Administrative Expenses | (51,171) | (43,396) | | Selling and Marketing Expenses | (17,065) | (19,043) | | Net impairment losses on financial assets | (1,212) | (3,882) | | Other income | 7,302 | 5,409 | | Net other income | 4,264 | 29,978 | | Operating Profit | 25,305 | 50,571 | | Finance income | 4,068 | 8,555 | | Finance costs | (3,158) | (523) | | Net finance costs | 910 | 8,032 | | Profit before income tax | 26,215 | 58,603 | | Income tax expense | (3,698) | (7,694) | | Profit for the period | 22,517 | 50,909 | | Profit for the period attributable to owners of the Company | 22,540 | 50,881 | | Non-controlling interests | (23) | 28 | | Total comprehensive income for the period | 22,709 | 50,909 | | Total comprehensive income for the period attributable to owners of the Company | 22,711 | 50,881 | | Non-controlling interests | (2) | 28 | [Condensed Interim Consolidated Statement of Financial Position](index=10&type=section&id=Condensed%20Interim%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets increased to RMB 1,106,321 thousand, driven by increases in property, plant and equipment, inventories, financial assets at fair value through profit or loss, and cash and bank balances; total liabilities also rose, mainly due to a significant increase in borrowings despite a decrease in trade and other payables, while total equity grew steadily Condensed Interim Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **ASSETS** | | | | Property, plant and equipment | 216,029 | 197,503 | | Right-of-use assets | 46,472 | 53,933 | | Intangible assets | 4,975 | 5,284 | | Deferred income tax assets | 167 | 133 | | Total non-current assets | 267,643 | 256,853 | | Inventories | 136,057 | 101,283 | | Trade receivables | 134,832 | 163,705 | | Prepayments, deposits and other receivables | 41,862 | 83,974 | | Financial assets at fair value through profit or loss | 108,455 | 20,056 | | Other current assets | 50,233 | 21,926 | | Cash and bank balances | 367,239 | 355,512 | | Total current assets | 838,678 | 746,456 | | Total assets | 1,106,321 | 1,003,309 | | **EQUITY** | | | | Equity attributable to owners of the Company | 552,663 | 529,952 | | Non-controlling interests | 1,060 | 817 | | Total equity | 553,723 | 530,769 | | **LIABILITIES** | | | | Trade and other payables | 133,829 | 164,303 | | Borrowings | 379,780 | 270,920 | | Contract liabilities | 9,542 | 4,404 | | Current income tax liabilities | 4,399 | 4,425 | | Lease liabilities (current) | 7,641 | 7,433 | | Deferred tax liabilities | 8,130 | 8,767 | | Total current liabilities | 543,321 | 460,252 | | Lease liabilities (non-current) | 9,277 | 12,288 | | Total liabilities | 552,598 | 472,540 | | Total equity and liabilities | 1,106,321 | 1,003,309 | [Notes](index=12&type=section&id=Notes) This section details the basis of preparation, changes in accounting policies, revenue breakdown, income tax expense, dividends, earnings per share, and aging analyses for trade receivables and payables [Basis of Preparation](index=12&type=section&id=Basis%20of%20Preparation) The unaudited interim financial information for the six months ended June 30, 2025, aligns with the accounting policies and calculation methods used for the audited financial statements for the year ended December 31, 2024, and includes applicable disclosures required by the Listing Rules - The basis of preparation for the unaudited interim financial information is consistent with the audited financial statements for the year ended December 31, 2024[31](index=31&type=chunk) [Changes in Accounting Policies](index=12&type=section&id=Changes%20in%20Accounting%20Policies) The Group adopted HKAS 21 (Amendment) "Lack of Exchangeability" for the accounting period beginning January 1, 2025, with no significant impact, and other newly issued but not yet effective standard amendments are not expected to materially affect the Group's financial performance or position - The Group first adopted HKAS 21 (Amendment) "Lack of Exchangeability" for the accounting period beginning January 1, 2025, with no significant impact[33](index=33&type=chunk)[34](index=34&type=chunk) - Newly issued but not yet effective standard amendments (including HKFRS 18, HKFRS 19, etc.) are not expected to have any significant impact on the Group's financial performance and financial position[35](index=35&type=chunk) [Revenue (By Type)](index=13&type=section&id=Revenue%20%28By%20Type%29) For the six months ended June 30, 2025, the Group's revenue was primarily from candle products, but home fragrance product revenue showed significant growth, and home decor revenue also increased Revenue Breakdown | Revenue Type | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Candles | 232,059 | 238,035 | | Home Fragrance | 93,258 | 68,921 | | Home Decor | 31,275 | 27,249 | | **Total Revenue** | **356,592** | **334,205** | [Income Tax Expense (Details)](index=13&type=section&id=Income%20Tax%20Expense%20%28Details%29) For the six months ended June 30, 2025, the Group's income tax expense was RMB 3,698 thousand, comprising current income tax of RMB 4,369 thousand and deferred income tax of RMB (671) thousand Income Tax Expense Details | Income Tax Type | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current income tax | 4,369 | 5,908 | | Deferred income tax | (671) | 1,786 | | **Total Income Tax Expense** | **3,698** | **7,694** | [Dividends (Notes)](index=13&type=section&id=Dividends%20%28Notes%29) For the six months ended June 30, 2025, the Group neither paid, declared, nor proposed any dividends, whereas an interim dividend of HKD 0.09 per share was declared on August 30, 2024 - For the six months ended June 30, 2025, no dividends were paid, declared, or proposed[38](index=38&type=chunk) - The Board declared an interim dividend of **HKD 0.09 per share** on August 30, 2024[39](index=39&type=chunk) [Earnings Per Share](index=14&type=section&id=Earnings%20Per%20Share) For the six months ended June 30, 2025, basic earnings per share attributable to owners of the Company was RMB 5.6 cents, a significant decrease from 12.6 cents in the prior period, with diluted EPS equal to basic EPS due to no potential dilutive ordinary shares Earnings Per Share Calculation | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit attributable to owners of the Company (RMB thousands) | 22,540 | 50,881 | | Weighted average number of ordinary shares in issue (thousands of shares) | 405,042 | 405,042 | | Basic Earnings Per Share (RMB cents) | 5.6 | 12.6 | - For the six months ended June 30, 2025, and June 30, 2024, diluted earnings per share were equal to basic earnings per share, as there were no outstanding instruments with a dilutive effect on the Company's ordinary shares[42](index=42&type=chunk) [Trade Receivables (Aging Analysis)](index=14&type=section&id=Trade%20Receivables%20%28Aging%20Analysis%29) As of June 30, 2025, net trade receivables totaled RMB 134,832 thousand, with the majority (approximately RMB 77,111 thousand) due within 30 days, and a significant reduction in receivables aged over 30 days to within 180 days compared to December 31, 2024 Trade Receivables Net | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade receivables | 137,303 | 166,893 | | Less: Impairment provision for trade receivables | (2,471) | (3,188) | | **Trade Receivables – Net** | **134,832** | **163,705** | Trade Receivables Aging Analysis | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 30 days | 77,111 | 70,743 | | Over 30 days to within 180 days | 50,478 | 90,751 | | Over 180 days to within 1 year | 7,256 | 2,604 | | Over 1 year to within 2 years | 1,270 | 1,024 | | Over 2 years | 1,188 | 1,771 | | **Total** | **137,303** | **166,893** | [Cash and Cash on Hand](index=15&type=section&id=Cash%20and%20Cash%20on%20Hand) As of June 30, 2025, the Group's total cash and cash equivalents amounted to RMB 367,239 thousand, including bank balances of RMB 286,252 thousand, which contained approximately RMB 78,870,962 in restricted cash deposits Cash and Cash Equivalents | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Bank balances | 286,252 | 353,357 | | Cash at other financial institutions | 80,973 | 2,140 | | Cash on hand | 14 | 15 | | **Total** | **367,239** | **355,512** | - As of June 30, 2025, bank balances included restricted cash deposits of approximately **RMB 78,870,962**[45](index=45&type=chunk)[46](index=46&type=chunk) [Share Capital and Share Premium](index=15&type=section&id=Share%20Capital%20and%20Share%20Premium) As of June 30, 2025, and December 31, 2024, the Company's issued and fully paid ordinary shares remained at 405,042,000, with share capital at an equivalent of RMB 358,767 thousand and share premium at RMB 173,560 thousand, both unchanged Share Capital and Share Premium Details | Indicator | Number of Ordinary Shares | Share Capital Par Value (HKD) | Share Capital Par Value Equivalent (RMB thousands) | Share Premium (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | As of December 31, 2024 and June 30, 2025 | 405,042,000 | 405,042 | 358,767 | 173,560 | [Trade and Other Payables (Aging Analysis)](index=16&type=section&id=Trade%20and%20Other%20Payables%20%28Aging%20Analysis%29) As of June 30, 2025, total trade and other payables amounted to RMB 133,829 thousand, with trade payables at RMB 124,329 thousand, and the vast majority of trade payables (RMB 123,316 thousand) due within 1 year Trade and Other Payables Breakdown | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade payables | 124,329 | 139,071 | | Other payables | 4,748 | 11,804 | | Accrued taxes (excluding income tax) | 4,583 | 5,154 | | Accrued staff salaries and benefits | 169 | 8,274 | | **Total** | **133,829** | **164,303** | Trade Payables Aging Analysis | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 1 year | 123,316 | 137,561 | | Over 1 year to within 2 years | 196 | 547 | | Over 2 years | 817 | 963 | | **Total** | **124,329** | **139,071** | [Other Information](index=17&type=section&id=Other%20Information) This section covers the purchase, sale, or redemption of listed securities, compliance with corporate governance code, board resolution on dividends, audit committee review, and definitions of key terms [Purchase, Sale or Redemption of the Company's Listed Securities](index=17&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities[48](index=48&type=chunk) [Compliance with Corporate Governance Code](index=17&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Company complied with the Corporate Governance Code for the six months ended June 30, 2025, except for Mr. Jin Jianxin holding both Chairman and CEO roles, which the Board believes is in the best interest of the Group and shareholders for efficient decision-making and strategy implementation - The Company complied with the Corporate Governance Code for the six months ended June 30, 2025, except that Mr. Jin Jianxin holds both the positions of Chairman and Chief Executive Officer[49](index=49&type=chunk) - The Board believes that Mr. Jin's dual role is in the overall best interests of the Group and the Company's shareholders, facilitating effective and prompt overall strategic planning and implementation of related plans[50](index=50&type=chunk) [Dividends (Board Resolution)](index=17&type=section&id=Dividends%20%28Board%20Resolution%29) The Board resolved not to declare any interim dividend for the six months ended June 30, 2025 - The Board resolved not to declare any interim dividend for the six months ended June 30, 2025[51](index=51&type=chunk) [Audit Committee](index=18&type=section&id=Audit%20Committee) The Company's Audit Committee reviewed the Group's unaudited interim results for the six months ended June 30, 2025, including the accounting principles and practices adopted by the Group - The Company's Audit Committee reviewed the Group's unaudited interim results for the six months ended June 30, 2025, including the accounting principles and practices adopted by the Group[52](index=52&type=chunk) [Definitions](index=18&type=section&id=Definitions) This section provides definitions for key terms used in the announcement, including Board, China, Company, Directors, Group, HKD, HKFRSs, Hong Kong, Listing Rules, RMB, Shares, Stock Exchange, and USD - This section provides definitions for key terms used in the announcement, such as "Board", "China", "Company", "Group", "HKD", "RMB", "USD", etc[53](index=53&type=chunk)[54](index=54&type=chunk)

Group 1 - The core point of the article is that the company, Kwangsi Fragrance (01925), is facing potential financial impacts due to the European Commission's decision to impose a temporary anti-dumping duty of 70.9% on candle products imported from the People's Republic of China, effective from August 13, 2025 [1] - The market capitalization of Kwangsi Fragrance is reported to be HKD 30.7445 million, which accounts for 6.84% of the total shares [1] - The company acknowledges that over 50% of its sales come from orders for candle products from customers in EU member states, indicating that the temporary duty could significantly affect the company's overall revenue and profit [1] Group 2 - The European Commission's investigation into anti-dumping measures is still in a preliminary phase, and the temporary duty rates may be subject to change during the final ruling of the investigation [1] - The transfer of shares from Xingzheng International Securities to Yingli Securities indicates a shift in shareholder interest, which may reflect market sentiment regarding the company's future performance amid regulatory changes [1]