(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：2098) NOTIFICATION LETTER 通 知 信 函 Dear Non-registered Shareholder (Note 1) , 19 September 2025 The following document(s) of Zall Smart Commerce Group Ltd. (the "Company") has/have been prepared in English and Chinese and is/are available on the websites of the Company at www.zallcn.com and The Stock Exchange of Hong Kong Limited at www.hkexnews.hk (collectively the "Websites"):- • Interim Report 2025 Please provide ...

The following document(s) of Zall Smart Commerce Group Ltd. (the "Company") has/have been prepared in English and Chinese and is/are available on the websites of the Company at www.zallcn.com and The Stock Exchange of Hong Kong Limited at www.hkexnews.hk (collectively the "Websites"):- (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：2098) NOTIFICATION LETTER 通知信函 Dear Shareholder(s), 19 September 2025 • Interim Report 2025 If you have not provided us with an ema ...

Company Performance - In the first half of 2025, the company achieved resilient growth amidst global supply chain transformation, ranking 160th in the Fortune China 500 list[7]. - The company achieved a revenue of RMB 24.5 billion during the reporting period, focusing on customer-centric strategies and digital innovation[25]. - The company’s platform, HSH International Inc., reported a revenue of approximately RMB 10.1 billion, with a cumulative customer base of 56,088 as of June 30, 2025[29]. - The company’s subsidiary, Zhuogang Chain, achieved a revenue of approximately RMB 7.5 billion, serving over 5,000 clients with a comprehensive supply chain service ecosystem[31]. - The company’s revenue increased by approximately 33.2% from RMB 68,276.4 million for the six months ended June 30, 2024, to RMB 90,921.5 million for the six months ended June 30, 2025[37]. - Revenue from supply chain management and trading business contributed about 99.7% of total revenue, showing a year-on-year increase of approximately 33.3% due to the expansion of business scale[38]. - The company reported a financial income of RMB (125,523,000) for the six months ended June 30, 2025, slightly higher than RMB (122,803,000) in the previous year[171]. - The company recorded a profit of RMB 97,051 thousand for the six months ended June 30, 2025, compared to a profit of RMB 49,817 thousand for the same period in 2024, representing an increase of approximately 94.5%[145]. Supply Chain and Digital Transformation - The company expanded its product matrix to over 2,500 types of raw materials, significantly increasing sales volume and revenue in various categories such as ABS, PP, and PET[8]. - The company has successfully implemented a "cloud factory" model in multiple regions, enhancing logistics efficiency and achieving same-day delivery capabilities[9]. - The company is focusing on digital trade and supply chain services, integrating AI and big data technologies to improve operational efficiency and risk management[9]. - The company has established modern supply chain systems in various sectors, including flowers, seafood, and textiles, enhancing market penetration and service capabilities[10]. - The company has launched a digital sugarcane planting management platform, utilizing AI technology for comprehensive monitoring throughout the growth cycle[9]. - The company has integrated various supply chain systems covering the entire steel industry chain, enhancing service capabilities through a multi-dimensional smart service system[9]. - The company aims to enhance operational efficiency and value along the supply chain, leveraging digital technologies such as big data and artificial intelligence[34]. Market Expansion and Customer Engagement - Hankou North has established over 30 large-scale integrated professional market clusters, including brand clothing and hotel supplies, aiming to become the largest supply chain management center in China and a leading global trade logistics platform[16]. - In the first half of 2025, Hankou North focused on upgrading its commodity market and developing a new model integrating industrial integration, experiential consumption, trade digitization, and supply chain services[16]. - The live streaming ecosystem at Hankou North has seen significant growth, with over 2,800 signed merchants and more than 200 live streaming teams, achieving over 1,000 live streaming sessions daily[11]. - Hankou North has established a "Foreign Trade Quality Live Streaming Room" and an online "Foreign Trade Special Zone," providing 24-hour electronic customs clearance and intelligent review services to help foreign trade enterprises expand into the domestic market[12]. - The live streaming e-commerce base has seen a surge in online order volume, with daily GMV reaching new highs, supported by free training programs for aspiring live streamers[21]. - Hankou North is committed to creating high-quality shopping parks, attracting over one million participants during themed events like the May Day Carnival[22]. Financial Overview - The cost of sales increased by approximately 33.5% from RMB 67,912.6 million to RMB 90,644.1 million, in line with the revenue increase[43]. - Gross profit decreased by approximately 23.8% from RMB 363.8 million to RMB 277.3 million, with the gross profit margin dropping from about 0.5% to 0.3%[44]. - Other net income decreased by approximately 65.3% from RMB 55.1 million to RMB 19.1 million, mainly due to a reduction in government subsidies and changes in fair value of forward contracts[45]. - Selling and distribution expenses increased by approximately 20.1% from RMB 122.8 million to RMB 147.6 million, primarily due to an increase in promotional expenses[46]. - The net profit for the six months ending June 30, 2025, was approximately RMB 70.0 million, an increase of approximately 71.7% compared to RMB 40.8 million for the same period last year[56]. - The company reported a net cash outflow from operating activities of RMB 1,251,654 thousand for the six months ended June 30, 2025, compared to RMB 3,411,736 thousand for the same period in 2024, showing a significant reduction of approximately 63.3%[146]. - The total equity attributable to equity shareholders of the company as of June 30, 2025, was RMB 14,016,047 thousand, up from RMB 13,951,217 thousand as of December 31, 2024, marking an increase of approximately 0.5%[145]. Employee and Governance - Employee benefit expenses for the six months ended June 30, 2025, were approximately RMB 146.4 million, compared to RMB 129.6 million for the same period in 2024, reflecting an increase of about 12.9%[71]. - The group employed a total of 1,558 full-time employees as of June 30, 2025, a decrease from 1,628 employees as of June 30, 2024[71]. - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules and has complied with all provisions during the reporting period[127]. - The company confirms that all directors have adhered to the standard code for securities trading during the six months ending June 30, 2025[128]. Future Outlook and Strategic Plans - The company plans to further develop through internal growth or acquisitions to enhance its intelligent ecosystem and operational efficiency[32]. - The group plans to generate positive operating cash flow over the next twelve months through improved supply chain management and trade business revenue[152]. - The group plans to sell non-core businesses and assets to raise additional operating funds[152]. - The company plans to continue investing in the market through self-funding, bank loans, and other channels to enhance the Han Kou Bei International Trading Center and promote the integration of online and offline businesses[65].

Core Insights - The "2025 China Top 500 Enterprises" list was released, with 15 companies from Hubei included, marking the first appearance of Hubei Agricultural Development Group [2][4] - Among the 15 Hubei enterprises, 7 saw an increase in their rankings, and 6 companies reported revenues exceeding 100 billion yuan, with one new addition compared to 2024 [3][4] Summary by Category Company Rankings - The 15 Hubei enterprises include Dongfeng Motor Group (ranked 73), Zall Smart Group (164), Hubei Lian Investment Group (180), and others, with Hubei Agricultural Development Group making its debut at rank 449 [3][4] - Seven companies improved their rankings: Zall Smart Group, Hubei Lian Investment Group, Hubei Transportation Investment Group, Wuhan Financial Holding Group, Wentai Technology, Jin'ao Technology, and Hubei Cultural Tourism Group [4][5] Revenue Performance - The total revenue of the "2025 China Top 500 Enterprises" reached 110.15 trillion yuan, an increase from the previous year, with the entry threshold rising to 47.96 billion yuan [4][5] - Six Hubei companies reported revenues over 100 billion yuan, including Dongfeng Motor Group (369.1 billion yuan), Zall Smart Group (162.3 billion yuan), and Hubei Lian Investment Group (151.82 billion yuan) [5][6] Industry Insights - The number of companies with revenues exceeding 100 billion yuan increased to 267, with 15 companies surpassing 1 trillion yuan in revenue [4][5] - Hubei ranks 10th nationally in terms of the number of companies on the list, and first in Central China [4][5]

Core Viewpoint - Under the leadership of entrepreneur Yan Zhi, Zall Holdings has become a well-known comprehensive enterprise group, with its main businesses including trade logistics and intelligent manufacturing. The performance of its three listed companies has shown divergence in the first half of 2025, with Zall Intelligent Network performing the best, while the other two A-share companies showed weaker results [1][2]. Group 1: Company Performance - Zall Intelligent Network achieved a revenue of approximately 90.92 billion yuan, a year-on-year increase of 33.17%, and a net profit of about 97.05 million yuan, up 94.82% year-on-year [2]. - Han Commercial Group reported a revenue of approximately 513 million yuan, a year-on-year decline of 18.06%, and a net profit of about 1.62 million yuan, down 80.95% year-on-year [2]. - Huazhong CNC's revenue was approximately 554 million yuan, a year-on-year decrease of 11.91%, with a net loss of about 81.45 million yuan, although it showed a reduction in losses compared to the previous year [2][3]. Group 2: Financial Ratios - Zall Intelligent Network's total assets were 69.78 billion yuan, with total liabilities of 55.40 billion yuan, resulting in an asset-liability ratio of 79.39% [4]. - Huazhong CNC had total assets of 4.45 billion yuan and total liabilities of 2.76 billion yuan, leading to an asset-liability ratio of 62.12% [4]. - Han Commercial Group's total assets were 3.42 billion yuan, with total liabilities of 1.62 billion yuan, resulting in an asset-liability ratio of 47.4% [4]. Group 3: Business Strategies and Developments - Han Commercial Group is advancing a dual business strategy of "big health + big commerce," focusing on pharmaceuticals, medical devices, and commercial operations [5]. - Zall Intelligent Network is involved in wholesale trade, supply chain management, and logistics, with sales costs increasing from approximately 67.91 billion yuan to about 90.64 billion yuan, a growth of over 30% [5]. - Zall Holdings has been recognized in various rankings, including being listed 46th in the 2025 China Private Enterprises 500 and 160th in the 2025 Fortune China 500 [6]. Group 4: Market Capitalization - As of September 3, Huazhong CNC had a market capitalization of 5.883 billion yuan, Han Commercial Group had 2.9 billion yuan, and Zall Intelligent Network had a market capitalization of 1.612 billion Hong Kong dollars, totaling approximately 10.26 billion yuan [7].

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: 卓爾智聯集團有限公司 呈交日期: 2025年9月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 02098 | 說明 | | | | | | | | 多櫃檯證券代號 | | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 24,000,000,000 | HKD | 0.003333333333 | HKD | | 79,999,999.99 | | 增加 / 減少 (-) | | | | | | HKD | | | | 本月底結存 | | | 24,000,000,000 | HKD | 0.00333333 ...

Group 1 - The core viewpoint of the news is that 卓尔智联 (Zall Intelligent) reported significant revenue growth and profit increase for the first half of 2025, driven by its supply chain management and trade business [1] - The company achieved a revenue of 90.921 billion RMB, representing a year-on-year increase of 33.17%, and a profit attributable to equity shareholders of 97.051 million RMB, up 94.82% year-on-year [1] - The company is focused on developing its core project, 汉口北国际贸易城 (Hankou North International Trade City), which has established a comprehensive market cluster with 30 specialized markets and various themed commercial districts [1] Group 2 - 汉口北 (Hankou North) is advancing a new model that integrates industrial integration, experiential consumption, trade digitization, supply chain services, and new foreign trade formats, aiming to create a modernized commercial circulation path [2] - The local government reports highlight the importance of 汉口北 as a key hub for integrated domestic and foreign trade, with recognition for its digital and logistical innovations in the national commodity trading market [2] - The company’s subsidiary, 深圳市中农网有限公司 (Zhongnong Network), achieved a revenue of 24.5 billion RMB, focusing on customer-centric strategies and digital innovation to enhance operational efficiency [3] Group 3 - The global sugar market experienced fluctuations, with initial price increases due to production cuts in major countries, followed by a decline as Brazilian production ramped up [3] - Zhongnong Network is enhancing its supply chain capabilities by directly connecting with quality sugar producers and optimizing customer resource structures, covering over 70% of core customer procurement needs [3] - The company has developed an online planting management platform that has effectively improved agricultural production efficiency and standardization across 2,800 acres of farmland [3]

Group 1 - The company, Zall Smart Commerce Group, reported a revenue of 90.921 billion RMB for the six months ending June 30, 2025, representing a year-on-year increase of 33.17% [1] - The net profit attributable to equity shareholders was 97.051 million RMB, a significant increase of 94.82% year-on-year, with basic earnings per share at 0.78 RMB [1] - The revenue growth was primarily driven by increased income from supply chain management and trading businesses [1] Group 2 - Hankou North is focusing on upgrading its commodity market and developing a new model that integrates industrial integration, experiential consumption, trade digitization, supply chain services, and new foreign trade formats [2] - The local government reports emphasize the importance of Hankou North as a national integrated commodity supply chain base and a core hub for the dual circulation strategy [2] - Hankou North received multiple honors at the 2025 China Commodity Trading Market Conference, including recognition as a model market for digital development and logistics supply chain innovation [2] Group 3 - The subsidiary, Zhongnong Network, achieved a revenue of 24.5 billion RMB, focusing on customer-centric strategies and digital innovation [3] - The global sugar market experienced a "rise and fall" trend, with domestic sugar prices decreasing by less than 3% due to a recovery in domestic sugar production and a decline in sugar imports [3] - Zhongnong Network is enhancing its operational model by integrating resources, deepening customer relationships, and boosting online transaction activity, with a 13% year-on-year increase in active trading customers [3]

Core Viewpoint - The company, Zall Smart Commerce Group (2098.HK), reported a strong financial performance for the first half of 2025, achieving revenue of 90.92 billion yuan, a year-on-year increase of 33.16%, and a net profit of 69.97 million yuan, up 71.67% despite challenging external conditions [1] Group 1: Revenue Growth Drivers - The agricultural products and overseas bulk commodities segments significantly contributed to revenue growth, with Zhongnongwang achieving revenue of 24.5 billion yuan, a 47.59% increase, and the World Commodity Intelligent Trading Center (CIC) reaching 32.2 billion yuan, a 161.79% increase [2] - CIC, based in Singapore, expanded its business in Southeast Asia, focusing on new energy segments and enhancing cross-border trade collaboration, resulting in a cumulative transaction volume exceeding 37.5 billion USD [2] Group 2: Strategic Initiatives - Zhongnongwang optimized its resource allocation and customer structure, enhancing its core competitiveness by establishing direct connections with quality sugar producers and expanding its global supply of high-quality coffee beans [3] - The company established a spice processing center in Xinjiang, adopting an innovative model that integrates smart agriculture and deep processing, thereby increasing product value and enhancing supply chain efficiency [3] Group 3: Business Transformation - Zhaogang Chain and Huashu Hui are actively transforming their business models, focusing on high-end manufacturing and green production, with Zhaogang Chain achieving breakthroughs in steel product exports to Taiwan [4] - In the plastics sector, Huashu Hui doubled its overall sales volume by expanding distribution and consignment businesses, while optimizing its trading categories and customer structure [4] Group 4: Integrated Service Capabilities - The company is advancing a new model that integrates industrial services, experiential consumption, digital trade, and supply chain services, with Han Kou Bei International Trade City becoming a key hub for national commodity supply chain integration [5] - Han Kou Bei is enhancing its logistics capabilities through smart warehousing and transportation systems, achieving seamless management of the entire logistics process [6] Group 5: Digital Transformation - The company is leveraging AI and IoT technologies to enhance operational efficiency, with Zhongnongwang launching a digital management platform for sugarcane cultivation that covers the entire supply chain [8] - The establishment of cloud factories and smart logistics systems is improving supply chain efficiency, enabling same-day delivery services in multiple regions [9] Group 6: Future Outlook - The company aims to strengthen its industry advantages and digital innovations to enhance the resilience and efficiency of its supply chain, positioning itself as a key player in the ongoing industrial transformation [9]

[Company Information and Financial Summary](index=1&type=section&id=Company%20Information%20and%20Financial%20Summary) This section presents the company's unaudited interim financial results, including key statements and highlights [Company Overview](index=1&type=section&id=1.1%20Company%20Overview) Zall Smart Commerce Group Ltd. announced its unaudited interim results for the six months ended June 30, 2025 - The company, Zall Smart Commerce Group Ltd., stock code 2098, is incorporated in the Cayman Islands[2](index=2&type=chunk) [Condensed Consolidated Interim Income Statement](index=1&type=section&id=1.2%20Condensed%20Consolidated%20Interim%20Income%20Statement) Revenue grew significantly, but gross profit and profit before tax declined; profit and basic EPS increased Condensed Consolidated Interim Income Statement Key Data (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 90,921,475 | 68,276,396 | +33.2% | | Cost of Sales | (90,644,136) | (67,912,566) | +33.5% | | Gross Profit | 277,339 | 363,830 | -23.8% | | Other Net Income | 19,093 | 55,065 | -65.3% | | Selling and Distribution Expenses | (147,551) | (122,849) | +20.1% | | Administrative and Other Expenses | (200,553) | (193,692) | +3.5% | | Net Impairment Loss | 18,132 | (42,596) | N/A | | Operating Profit | 272,207 | 354,292 | -23.2% | | Finance Income | 125,523 | 122,803 | +2.2% | | Finance Costs | (293,809) | (338,891) | -13.3% | | Profit Before Tax | 106,570 | 138,632 | -23.1% | | Profit for the Period | 69,972 | 40,760 | +71.7% | | Profit Attributable to Equity Holders of the Company | 97,051 | 49,817 | +94.8% | | Basic and Diluted Earnings Per Share (RMB cents) | 0.78 | 0.40 | +95.0% | [Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=1.3%20Condensed%20Consolidated%20Interim%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) Profit for the period significantly increased, but total comprehensive income slightly decreased due to foreign exchange differences Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income Key Data (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit for the Period | 69,972 | 40,760 | | Other Comprehensive Loss for the Period (Exchange Differences) | (32,221) | (2,682) | | Total Comprehensive Income for the Period | 37,751 | 38,078 | | Total Comprehensive Income Attributable to Equity Holders of the Company | 64,830 | 47,135 | [Condensed Consolidated Interim Statement of Financial Position](index=4&type=section&id=1.4%20Condensed%20Consolidated%20Interim%20Statement%20of%20Financial%20Position) Non-current assets and total assets slightly increased, net current liabilities improved but remained negative, and total equity remained stable Condensed Consolidated Interim Statement of Financial Position Key Data (As of June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Investment Properties | 25,194,024 | 24,879,292 | | Total Non-current Assets | 27,222,086 | 26,866,732 | | **Current Assets** | | | | Inventories | 4,328,550 | 3,975,854 | | Trade and Other Receivables | 28,562,645 | 26,286,928 | | Pledged Bank Deposits | 7,494,483 | 10,014,072 | | Cash and Cash Equivalents | 1,531,290 | 1,545,952 | | Total Current Assets | 42,560,212 | 42,618,024 | | **Current Liabilities** | | | | Trade and Other Payables | 18,380,210 | 18,755,310 | | Contract Liabilities | 16,872,656 | 14,924,656 | | Interest-bearing Borrowings | 9,640,129 | 11,568,152 | | Total Current Liabilities | 46,733,251 | 47,343,087 | | Net Current Liabilities | (4,173,039) | (4,725,063) | | **Non-current Liabilities** | | | | Interest-bearing Borrowings | 4,044,646 | 3,263,285 | | Deferred Tax Liabilities | 4,602,303 | 4,510,741 | | Total Non-current Liabilities | 8,668,343 | 7,798,716 | | **Total Equity** | 14,380,704 | 14,342,953 | [Notes to the Financial Statements](index=6&type=section&id=Notes%20to%20the%20Financial%20Statements) This section details financial statement notes, covering accounting policies, segment reporting, and key items [Basis of Preparation and Going Concern](index=6&type=section&id=2.1%20Basis%20of%20Preparation%20and%20Going%20Concern) Interim financial information is prepared on a going concern basis despite net current liabilities, with management addressing liquidity challenges - This condensed consolidated interim financial information is prepared in accordance with applicable disclosure provisions of the HKEX Listing Rules and IAS 34 'Interim Financial Reporting'[8](index=8&type=chunk) - As of June 30, 2025, the Group had net current liabilities of approximately **RMB 4.173 billion**, indicating significant uncertainty, but the Board is confident in meeting financial obligations for the next 12 months, thus preparing on a going concern basis[9](index=9&type=chunk)[11](index=11&type=chunk) - The company has implemented measures to manage liquidity, including improving supply chain management and trading business revenue, investment property rental income, negotiating loan extensions or refinancing with banks, considering share placements, and disposing of non-core businesses and assets[10](index=10&type=chunk)[13](index=13&type=chunk) [Changes in Accounting Policies](index=7&type=section&id=2.2%20Changes%20in%20Accounting%20Policies) IAS 21 (Amendment) was applied, but had no material impact as the Group did not engage in relevant transactions - The Group applied IAS 21 (Amendment) 'The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability' in this accounting period, but it had no material impact as no foreign currency transactions involving non-exchangeable currencies were conducted[12](index=12&type=chunk) [Revenue and Segment Reporting](index=8&type=section&id=2.3%20Revenue%20and%20Segment%20Reporting) The Group's main businesses include developing and operating large consumer goods wholesale markets and providing supply chain management and trading services, with total revenue reaching RMB 90.921 billion - The Group's primary business involves developing and operating large consumer goods wholesale markets in China and providing supply chain management and trading services, e-commerce services, financial services, warehousing, and logistics services for online and offline customers[14](index=14&type=chunk) - The Group manages its business through two reportable segments: property development and related services, and supply chain management and trading[16](index=16&type=chunk)[19](index=19&type=chunk) [Revenue Breakdown](index=8&type=section&id=2.3.1%20Revenue%20Breakdown) Supply chain management and trading revenue significantly increased, while property sales and rental income decreased Revenue Breakdown (For the six months ended June 30) | Revenue Source | 2025 (RMB thousands) | 2024 (RMB thousands) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Sales of Properties and Related Services | 45,952 | 54,321 | -15.4% | | Supply Chain Management and Trading Business | 90,693,400 | 68,047,691 | +33.3% | | Others (from contracts with customers) | 1,733 | 9,688 | -82.1% | | **Total Revenue from Contracts with Customers** | **90,741,085** | **68,111,700** | **+33.2%** | | Gross Rental Income from Investment Properties | 116,961 | 122,416 | -4.4% | | Financing Income | 24,987 | 31,029 | -19.5% | | Others (other sources) | 38,442 | 11,251 | +241.7% | | **Total Revenue from Other Sources** | **180,390** | **164,696** | **+9.5%** | | **Total Revenue** | **90,921,475** | **68,276,396** | **+33.2%** | - The total transaction price allocated to the remaining performance obligations under existing contracts of the Group was **RMB 188.534 million**, expected to be recognized within 1 to 24 months[18](index=18&type=chunk) [Segment Reporting](index=9&type=section&id=2.3.2%20Segment%20Reporting) Supply chain management and trading revenue grew but incurred a loss, while property development remained profitable Reportable Segment Results (For the six months ended June 30) | Indicator | Property Development and Related Services (2025) | Property Development and Related Services (2024) | Supply Chain Management and Trading (2025) | Supply Chain Management and Trading (2024) | | :--- | :--- | :--- | :--- | :--- | | Reportable Segment Revenue (RMB thousands) | 163,148 | 176,698 | 90,756,594 | 68,090,010 | | Reportable Segment Profit/(Loss) (RMB thousands) | 71,529 | 64,380 | (109,948) | (54,301) | | Net Gain from Investment Property Valuation (RMB thousands) | 305,747 | 294,534 | – | – | - Supply chain management and trading segment revenue significantly increased but turned from profit to loss, primarily affected by finance costs and impairment losses[21](index=21&type=chunk) [Geographical Segment Information](index=11&type=section&id=2.3.3%20Geographical%20Segment%20Information) Mainland China remains the primary revenue source, with significant growth in Singapore market revenue Geographical Segment Revenue and Designated Non-current Assets (As of June 30) | Region | Revenue from External Customers (2025, RMB thousands) | Revenue from External Customers (2024, RMB thousands) | Designated Non-current Assets (2025, RMB thousands) | Designated Non-current Assets (2024, RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | China | 58,703,618 | 55,935,779 | 26,668,642 | 26,255,302 | | Singapore | 32,217,857 | 12,340,617 | 2,044 | 2,044 | | **Total** | **90,921,475** | **68,276,396** | **26,670,686** | **26,257,346** | [Other Net Income](index=12&type=section&id=2.4%20Other%20Net%20Income) Other net income significantly decreased by 65.3%, mainly due to reduced government grants and fair value changes Other Net Income Details (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net change in fair value of financial instruments at FVTPL | 18,400 | 33,103 | | Government grants | 5,982 | 22,291 | | Cancellation of purchase orders and penalties for product defects | (4,263) | – | | Others | (1,026) | (329) | | **Total** | **19,093** | **55,065** | [Profit Before Tax](index=12&type=section&id=2.5%20Profit%20Before%20Tax) Profit before tax was influenced by finance income and costs, depreciation, staff costs, R&D, and impairment losses [Finance Income and Costs](index=12&type=section&id=2.5.1%20Finance%20Income%20and%20Costs) Finance income slightly increased, while finance costs significantly decreased, mainly due to interest waivers Finance Income and Costs (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Finance Income | | | | Interest income from bank deposits | (125,523) | (122,803) | | Finance Costs | | | | Interest on interest-bearing borrowings | 257,249 | 338,215 | | Interest on lease liabilities | 621 | 520 | | Other borrowing costs | 1,907 | 2,963 | | Less: Capitalised into properties under development | (37,462) | (42,839) | | Bank charges and others | 68,970 | 42,906 | | Net exchange losses/(gains) | 2,524 | (2,874) | | **Total Finance Income** | **(125,523)** | **(122,803)** | | **Total Finance Costs** | **293,809** | **338,891** | [Other Expense Details](index=13&type=section&id=2.5.2%20Other%20Expense%20Details) Total depreciation and amortization decreased, staff costs increased, R&D costs remained stable, and impairment losses reversed Other Expense Details (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Amortisation of intangible assets | 18,653 | 20,611 | | Depreciation of property, plant and equipment | 14,787 | 19,076 | | Depreciation of right-of-use assets | 8,980 | 11,393 | | **Total Depreciation and Amortisation** | **42,420** | **51,080** | | Salaries, wages and other benefits | 136,454 | 119,102 | | Contributions to defined contribution retirement plans | 9,950 | 10,479 | | **Total Staff Costs** | **146,404** | **129,581** | | Research and development costs | 7,223 | 7,255 | | Net impairment losses under ECL model | (27,034) | (15,341) | [Income Tax](index=13&type=section&id=2.6%20Income%20Tax) Income tax expense significantly decreased due to reversal of prior year over-provision for China corporate income tax Income Tax Details (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current tax (China corporate income tax) | 14,561 | 22,635 | | Current tax (China land appreciation tax) | – | 1,015 | | Over-provision in prior years (China corporate income tax) | (151,121) | – | | Deferred tax | 173,158 | 74,222 | | **Total Income Tax** | **36,598** | **97,872** | - Some Chinese subsidiaries enjoy preferential corporate income tax rates of **15% or 9%** under specific development strategies or enterprise regulations[28](index=28&type=chunk) - The Group expects Pillar Two rules to have no material impact on its income tax position, as Singapore's effective tax rate exceeds 15% and China has not yet implemented relevant legislation[29](index=29&type=chunk) [Earnings Per Share](index=15&type=section&id=2.7%20Earnings%20Per%20Share) Basic earnings per share increased by 95% to RMB 0.78 cents, driven by higher profit attributable to equity holders Earnings Per Share (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit attributable to ordinary equity holders of the Company (RMB thousands) | 97,051 | 49,817 | | Weighted average number of ordinary shares in issue (thousands) | 12,399,506 | 12,399,506 | | Basic and diluted earnings per share (RMB cents) | 0.78 | 0.40 | - Unexercised share options did not result in potential diluted ordinary shares, as their exercise price exceeded the average market price of ordinary shares for the periods[32](index=32&type=chunk) [Investment Properties](index=15&type=section&id=2.8%20Investment%20Properties) Investment properties were revalued, recognizing a net fair value gain, with a significant portion pledged for borrowings - Investment properties were revalued by independent valuers as of June 30, 2025, recognizing a net fair value gain of **RMB 305.747 million**[33](index=33&type=chunk) - As of June 30, 2025, the Group had pledged completed investment properties and investment properties under development with a total carrying amount of **RMB 11.961 billion** for interest-bearing borrowings[33](index=33&type=chunk) [Property, Plant and Equipment](index=15&type=section&id=2.9%20Property%2C%20Plant%20and%20Equipment) New right-of-use assets and property additions were recognized, with some buildings lacking certificates or being pledged - For the six months ended June 30, 2025, the Group recognized new right-of-use assets of **RMB 5.185 million** and additions to property, plant and equipment totaling **RMB 19.939 million**[34](index=34&type=chunk) - As of June 30, 2025, certain buildings with a net carrying amount of **RMB 45.375 million** lacked property ownership certificates, and buildings with a net carrying amount of **RMB 28.275 million** were pledged[34](index=34&type=chunk) [Trade and Other Receivables](index=16&type=section&id=2.10%20Trade%20and%20Other%20Receivables) Total trade and other receivables increased to RMB 28.563 billion, with trade receivables and advances to suppliers as main components Trade and Other Receivables Details (As of June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade receivables (net of loss allowance) | 10,097,931 | 8,725,888 | | Loans and factoring receivables (net of loss allowance) | 1,225,829 | 1,282,860 | | Advances to suppliers | 15,439,028 | 13,981,971 | | Other receivables, deposits and prepayments | 1,799,857 | 2,296,209 | | **Total** | **28,562,645** | **26,286,928** | - As of June 30, 2025, the Group pledged other receivables of **RMB 250,000** for interest-bearing borrowings[35](index=35&type=chunk) [Ageing Analysis of Trade Receivables](index=16&type=section&id=2.10.1%20Ageing%20Analysis%20of%20Trade%20Receivables) Total trade receivables were RMB 10.098 billion, with the majority (96.6%) aged within six months Ageing Analysis of Trade Receivables (As of June 30) | Ageing | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 6 months | 9,754,517 | 7,739,161 | | Over 6 months but within 12 months | 234,728 | 821,325 | | Over 12 months | 108,686 | 165,402 | | **Total** | **10,097,931** | **8,725,888** | [Loans and Factoring Receivables](index=16&type=section&id=2.10.2%20Loans%20and%20Factoring%20Receivables) Total loans and factoring receivables were RMB 1.226 billion, mostly aged within six months, with secured loans being a larger proportion Loans and Factoring Receivables Details (As of June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Secured loans receivable (net of loss allowance) | 1,087,346 | 1,106,477 | | Factoring receivables (net of loss allowance) | 138,483 | 176,383 | | **Total** | **1,225,829** | **1,282,860** | Ageing Analysis of Loans and Factoring Receivables (As of June 30) | Ageing | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 6 months | 1,142,061 | 1,077,822 | | Over 6 months but within 12 months | 30,335 | 117,935 | | Over 12 months | 53,433 | 87,103 | | **Total** | **1,225,829** | **1,282,860** | [Trade and Other Payables](index=17&type=section&id=2.11%20Trade%20and%20Other%20Payables) Total trade and other payables decreased slightly to RMB 18.380 billion, with most aged within six months Trade and Other Payables Details (As of June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade payables and bills payable | 13,531,298 | 14,779,661 | | Receipts in advance | 71,914 | 76,313 | | Other payables and accrued expenses | 4,776,998 | 3,899,336 | | **Total** | **18,380,210** | **18,755,310** | Ageing Analysis of Trade Payables and Bills Payable (As of June 30) | Ageing | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 6 months | 12,112,634 | 13,737,077 | | Over 6 months but within 12 months | 1,223,104 | 727,534 | | Over 12 months | 195,560 | 315,050 | | **Total** | **13,531,298** | **14,779,661** | - Pledged bank deposits of **RMB 7.189 billion** were used as collateral for bills payable as of June 30, 2025[40](index=40&type=chunk) [Interest-bearing Borrowings](index=18&type=section&id=2.12%20Interest-bearing%20Borrowings) Total interest-bearing borrowings decreased by 7.7% to RMB 13.685 billion, with current borrowings remaining high Interest-bearing Borrowings Carrying Amount Analysis (As of June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | **Current** | | | | Bank and other financial institution loans | 3,912,200 | 4,985,867 | | Other loans | 1,937,089 | 1,996,716 | | Loans from entities controlled by ultimate holding company | 20,000 | 20,000 | | Discounted bank acceptance bills | 3,770,840 | 4,565,569 | | **Total Current** | **9,640,129** | **11,568,152** | | **Non-current** | | | | Bank and other financial institution loans | 2,184,043 | 1,316,019 | | Other loans | 1,860,603 | 1,947,266 | | **Total Non-current** | **4,044,646** | **3,263,285** | | **Total** | **13,684,775** | **14,831,437** | [Bank and Other Financial Institution Loans](index=19&type=section&id=2.12.1%20Bank%20and%20Other%20Financial%20Institution%20Loans) Total bank and other financial institution loans amounted to RMB 6.096 billion, mostly secured/guaranteed, with some repayable on demand Bank and Other Financial Institution Loans Details (As of June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Secured/guaranteed | 5,319,765 | 5,124,272 | | Unsecured | 776,478 | 1,177,614 | | **Total** | **6,096,243** | **6,301,886** | - As of June 30, 2025, **RMB 159.4 million** in bank and other financial institution loans were repayable on demand due to breaches of financial covenants[43](index=43&type=chunk) - As of June 30, 2025, **RMB 3.732 billion** in bank and other financial institution loans were secured by Group assets with a total carrying amount of **RMB 12.439 billion**[42](index=42&type=chunk) [Other Loans](index=20&type=section&id=2.12.2%20Other%20Loans) Total other loans amounted to RMB 3.798 billion, all unsecured, with fixed annual interest rates from 4.00% to 12.00% - As of June 30, 2025, total other loans amounted to **RMB 3.798 billion**, all unsecured, bearing fixed annual interest rates ranging from **4.00% to 12.00%**[44](index=44&type=chunk) [Loans from Entities Controlled by Ultimate Holding Company](index=20&type=section&id=2.12.3%20Loans%20from%20Entities%20Controlled%20by%20Ultimate%20Holding%20Company) Loans from entities controlled by the ultimate holding company amounted to RMB 20 million, unsecured, with a fixed annual interest rate of 5% - Loans from entities controlled by the ultimate holding company amounted to **RMB 20 million**, unsecured, bearing a fixed annual interest rate of **5%**[46](index=46&type=chunk) [Discounted Bank Acceptance Bills](index=20&type=section&id=2.12.4%20Discounted%20Bank%20Acceptance%20Bills) The Group held discounted bank acceptance bills of RMB 3.771 billion, retaining all risks and rewards, thus recognizing them in full - The Group held discounted bank acceptance bills of **RMB 3.771 billion**, retaining all risks and rewards, including default risk, and thus continues to recognize these instruments in full[46](index=46&type=chunk) [Capital, Reserves and Dividends](index=21&type=section&id=2.13%20Capital%2C%20Reserves%20and%20Dividends) The Group aims to ensure continuous operation and shareholder returns, managing capital structure through various adjustments and monitoring the adjusted net debt to capital ratio [Dividends](index=21&type=section&id=2.13.1%20Dividends) The Board does not recommend an interim dividend for the six months ended June 30, 2025, and no final dividend was approved for the prior fiscal year - The Board does not recommend an interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[50](index=50&type=chunk) - For the six months ended June 30, 2025, no final dividend was approved or paid for the prior fiscal year (six months ended June 30, 2024: nil)[48](index=48&type=chunk) [Capital Management](index=21&type=section&id=2.13.2%20Capital%20Management) The Group manages its capital structure by monitoring the adjusted net debt to capital ratio, which increased to 33.43% - The Group's primary objective in managing capital is to safeguard its ability to continue as a going concern, providing returns to shareholders and stakeholders by pricing products and services commensurate with risk and obtaining financing at reasonable cost[49](index=49&type=chunk) Adjusted Net Debt to Capital Ratio (As of June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Total borrowings | 13,710,993 | 14,861,164 | | Less: Pledged bank deposits | (7,494,483) | (10,014,072) | | Less: Cash and cash equivalents | (1,531,290) | (1,545,952) | | Adjusted Net Debt | 4,685,220 | 3,301,140 | | Total equity attributable to equity holders of the Company | 14,016,047 | 13,951,217 | | **Adjusted Net Debt to Capital Ratio** | **33.43%** | **23.66%** | [Management Discussion and Analysis](index=23&type=section&id=Management%20Discussion%20and%20Analysis) This section discusses the Group's business review, operating results, liquidity, and future outlook [Business Review](index=23&type=section&id=3.1%20Business%20Review) The Group's business primarily consists of consumer goods wholesale trade and supply chain management and trading, continuously deepening digital-real integration and expanding new business models - The Group's business is primarily divided into two major segments: consumer goods wholesale trade and supply chain management and trading[14](index=14&type=chunk) [Consumer Goods Wholesale Trade](index=23&type=section&id=3.1.1%20Consumer%20Goods%20Wholesale%20Trade) Hankoubei International Trade City focuses on market upgrades, developing new models, and deepening integration to build a national commodity supply chain base - Hankoubei International Trade City has formed **30 large-scale comprehensive specialized market clusters**, accelerating its development into 'China's largest and world-leading' supply chain management and commercial logistics platform[52](index=52&type=chunk) - Hankoubei continues to innovate, introducing diversified commercial resources, accelerating the construction of new experiential consumption transaction scenarios, and deepening digital-real integration to promote the vigorous development of live e-commerce[53](index=53&type=chunk)[55](index=55&type=chunk) - Hankoubei and SF Group jointly built the Huahu Airport Hankoubei Cargo Station, achieving three-dimensional empowerment of 'aviation hub + commercial market + intelligent manufacturing technology' and accelerating 'one-stop overseas' channels for advantageous industries[54](index=54&type=chunk) [Supply Chain Management and Trading](index=25&type=section&id=3.1.2%20Supply%20Chain%20Management%20and%20Trading) The Group operates B2B platforms for agricultural products, chemical plastics, steel, and energy, enhancing efficiency and risk management through digital innovation - The Group has built and operates a matrix of B2B trading platforms for agricultural products, chemical plastics, steel, and energy[57](index=57&type=chunk) - Zhongnongwang (agricultural products B2B platform) achieved operating revenue of **RMB 24.5 billion**, strengthening domestic sugar supply chain control and expanding into high-value-added areas like coffee and spices through digital empowerment[58](index=58&type=chunk)[59](index=59&type=chunk) - Huashuhui (chemical and plastic B2B platform) achieved operating revenue of approximately **RMB 10.1 billion**, with **56,088 cumulative customers**, by refining distribution strategies, adding aromatic product channels, and building a TMS system for logistics efficiency[60](index=60&type=chunk)[61](index=61&type=chunk) - Zhuoganglian (ferrous bulk commodity platform) built an ecosystem of smart trading and supply chain services, collaborating with **16 financial institutions** and deploying **32 standard warehouses** across **260 cities**, achieving operating revenue of approximately **RMB 7.5 billion**[62](index=62&type=chunk) - CIC (World Commodity Intelligent Trading Center) achieved operating revenue of approximately **RMB 32.2 billion**, with **16,965 registered users** and transaction volume exceeding **USD 37.5 billion**, by leveraging blockchain technology to reduce international trade risks[63](index=63&type=chunk) [Future Outlook](index=28&type=section&id=3.2%20Future%20Outlook) Zall Smart Commerce will enhance digital technology, build a comprehensive service architecture, and extend its reach across the industry chain to create a collaborative ecosystem - Zall Smart Commerce will increase digital technology R&D and application, building a "B2B transaction services + supply chain services + digital technology cloud services" architecture focused on "new trade models" using big data and AI[64](index=64&type=chunk) - The company will leverage industrial advantages to extend service reach across the industry chain, enhancing operational efficiency and value, strengthening stability and resilience, and collaborating with partners to build an open, collaborative, and win-win industrial ecosystem[64](index=64&type=chunk) [Investment Portfolio](index=29&type=section&id=3.3%20Investment%20Portfolio) The Group holds listed equity securities in Fullshare Holdings Limited, recognizing an unrealized holding loss, with this investment being a minimal proportion of total assets Listed Equity Investment Portfolio (As of June 30) | Investee Company Name | Stock Code | Number of Shares Held | Effective Equity Interest | Acquisition Cost (RMB thousands) | Carrying Amount (RMB thousands) | Unrealized Holding Loss (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Fullshare Holdings Limited | 00607 | 11,819,250 | 1.86% | 620,157 | 4,419 | 1,053 | - For the six months ended June 30, 2025, the Group recognized an unrealized holding loss of approximately **RMB 1.1 million**, with this investment's carrying amount accounting for less than **0.01%** of the Group's total assets[65](index=65&type=chunk) [Operating Results](index=30&type=section&id=3.4%20Operating%20Results) Operating revenue significantly increased, but gross profit margin declined, while profit for the period grew due to reduced income tax and lower finance costs [Operating Revenue](index=30&type=section&id=3.4.1%20Operating%20Revenue) Total revenue increased by 33.2% to RMB 90.9215 billion, primarily driven by expanded supply chain management and trading business - The Group's revenue increased by approximately **33.2%** from approximately **RMB 68.2764 billion** for the six months ended June 30, 2024, to approximately **RMB 90.9215 billion** for the six months ended June 30, 2025, primarily due to increased revenue from supply chain management and trading business[67](index=67&type=chunk) - For the six months ended June 30, 2025, revenue from the Group's supply chain management and trading business contributed approximately **99.7%** of total turnover, an increase of approximately **33.3%** year-on-year[68](index=68&type=chunk) - The Group's rental income decreased from approximately **RMB 122.4 million** to approximately **RMB 117.0 million**, mainly due to a decrease in leased area during the reporting period[69](index=69&type=chunk) - Revenue from sales of properties and related services decreased by approximately **15.4%** from approximately **RMB 54.3 million** to approximately **RMB 46.0 million**, primarily due to a decrease in delivered property gross floor area[71](index=71&type=chunk) [Cost of Sales and Gross Profit](index=31&type=section&id=3.4.2%20Cost%20of%20Sales%20and%20Gross%20Profit) Cost of sales increased with revenue, but gross profit decreased by 23.8% to RMB 277.3 million, with gross profit margin falling to 0.3% - The Group's cost of sales increased by approximately **33.5%** from approximately **RMB 67.9126 billion** to approximately **RMB 90.6441 billion**, consistent with the increase in revenue[72](index=72&type=chunk) - The Group's gross profit decreased by approximately **23.8%** from approximately **RMB 363.8 million** to approximately **RMB 277.3 million**, with the gross profit margin falling from **0.5% to 0.3%**, primarily due to a decrease in the gross profit margin of the supply chain management and trading business[73](index=73&type=chunk) [Other Net Income](index=32&type=section&id=3.4.3%20Other%20Net%20Income) Other net income significantly decreased by 65.3% to RMB 19.1 million, due to reduced government grants and fair value changes - The Group's other net income decreased by approximately **65.3%** from approximately **RMB 55.1 million** to **RMB 19.1 million**, primarily due to reduced government grants, lower net gain from fair value changes of forward contracts, and non-recognition of prior period contingent consideration net gain[74](index=74&type=chunk) [Selling and Distribution Expenses](index=32&type=section&id=3.4.4%20Selling%20and%20Distribution%20Expenses) Selling and distribution expenses increased by 20.1% to RMB 147.6 million, primarily due to increased promotion expenses - The Group's selling and distribution expenses increased by approximately **20.1%** from **RMB 122.8 million** to approximately **RMB 147.6 million**, mainly due to an increase in promotion expenses of approximately **RMB 25.3 million**[75](index=75&type=chunk) [Administrative and Other Expenses](index=32&type=section&id=3.4.5%20Administrative%20and%20Other%20Expenses) Administrative and other expenses increased by 3.5% to RMB 200.6 million, influenced by increased staff costs and reduced professional fees and depreciation - The Group's administrative and other expenses increased by approximately **3.5%** from approximately **RMB 193.7 million** to approximately **RMB 200.6 million**, primarily due to increased staff costs, decreased professional fees, and decreased depreciation expenses[76](index=76&type=chunk) [Net Impairment Losses under ECL Model](index=32&type=section&id=3.4.6%20Net%20Impairment%20Losses%20under%20ECL%20Model) The Group reversed expected credit losses of RMB 18.1 million, a significant improvement from prior period impairment losses - For the six months ended June 30, 2025, the Group reversed impairment losses under the expected credit loss model of approximately **RMB 18.1 million**, compared to recognizing impairment losses of approximately **RMB 42.6 million** in the prior period, primarily due to improved impairment losses on various receivables[77](index=77&type=chunk) [Net Gain from Investment Property Valuation](index=33&type=section&id=3.4.7%20Net%20Gain%20from%20Investment%20Property%20Valuation) Net gain from investment property valuation increased by 3.8% to RMB 305.7 million, primarily due to new properties transferred to investment properties - Net gain from investment property valuation increased by approximately **3.8%** from approximately **RMB 294.5 million** to approximately **RMB 305.7 million**, primarily due to new properties transferred to investment properties during the period[78](index=78&type=chunk) [Finance Income and Costs](index=33&type=section&id=3.4.8%20Finance%20Income%20and%20Costs) Finance income slightly increased by 2.2%, while finance costs significantly decreased by 13.3% due to interest waivers - The Group's finance income increased by approximately **2.2%** from approximately **RMB 122.8 million** to approximately **RMB 125.5 million**, while finance costs decreased by approximately **13.3%** from approximately **RMB 338.9 million** to approximately **RMB 293.8 million**, primarily due to a waiver of interest on interest-bearing borrowings[79](index=79&type=chunk) [Share of Net (Loss)/Profit of Associates and Joint Ventures](index=33&type=section&id=3.4.9%20Share%20of%20Net%20(Loss)%2FProfit%20of%20Associates%20and%20Joint%20Ventures) Share of net loss from associates increased, while share of net profit from joint ventures turned positive due to increased profit from one joint venture - Share of net loss from associates for the six months ended June 30, 2025, was approximately **RMB 4.8 million**, compared to a net profit of approximately **RMB 0.7 million** in the prior period, primarily due to increased net losses from certain associates[80](index=80&type=chunk) - The Group's share of net profit from joint ventures for the six months ended June 30, 2025, was approximately **RMB 7.4 million**, compared to a net loss of approximately **RMB 0.2 million** in the prior period, primarily due to increased profit from one joint venture[81](index=81&type=chunk) [Income Tax](index=34&type=section&id=3.4.10%20Income%20Tax) Income tax decreased by 62.6% to RMB 36.6 million, primarily due to the reversal of over-provision for China corporate income tax - Income tax decreased by approximately **62.6%** from approximately **RMB 97.9 million** to approximately **RMB 36.6 million**, primarily due to the reversal of over-provision for China corporate income tax of approximately **RMB 40.0 million** in prior years[82](index=82&type=chunk) [Profit for the Period](index=34&type=section&id=3.4.11%20Profit%20for%20the%20Period) The Group's profit for the period significantly increased by 71.7% to RMB 70.0 million - For the six months ended June 30, 2025, the Group recorded a net profit of approximately **RMB 70.0 million**, an increase of approximately **71.7%** compared to approximately **RMB 40.8 million** in the prior period[83](index=83&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=3.5%20Liquidity%20and%20Capital%20Resources) Net current liabilities improved but remained negative, total equity remained stable, and the company is managing liquidity through various measures - As of June 30, 2025, the Group's net current liabilities were approximately **RMB 4.173 billion** (December 31, 2024: approximately **RMB 4.7251 billion**) and total equity was approximately **RMB 14.3807 billion** (December 31, 2024: approximately **RMB 14.343 billion**)[84](index=84&type=chunk) - The Group is implementing measures to manage liquidity and improve its financial position, including increasing operating cash inflows, negotiating debt extensions or refinancing, considering equity financing, and disposing of non-core assets[84](index=84&type=chunk) [Cash Position and Treasury Policy](index=34&type=section&id=3.5.1%20Cash%20Position%20and%20Treasury%20Policy) Cash and cash equivalents were approximately RMB 1.5313 billion, with regular monitoring of funding and financial position - As of June 30, 2025, the Group's cash and cash equivalents were approximately **RMB 1.5313 billion** (December 31, 2024: approximately **RMB 1.546 billion**)[85](index=85&type=chunk) [Interest-bearing Borrowings](index=35&type=section&id=3.5.2%20Interest-bearing%20Borrowings) Total interest-bearing borrowings decreased by 7.7% to RMB 13.6848 billion, with most denominated in RMB - The Group's total interest-bearing borrowings decreased by approximately **7.7%** from approximately **RMB 14.8314 billion** as of December 31, 2024, to approximately **RMB 13.6848 billion** as of June 30, 2025[86](index=86&type=chunk) [Net Gearing Ratio](index=35&type=section&id=3.5.3%20Net%20Gearing%20Ratio) The net gearing ratio increased from 23.7% to 33.4%, primarily due to an increase in adjusted net debt - The Group's net gearing ratio increased from approximately **23.7%** to approximately **33.4%**, primarily due to an increase in adjusted net debt, despite decreases in total borrowings and pledged bank deposits[87](index=87&type=chunk) [Foreign Exchange Risk](index=35&type=section&id=3.5.4%20Foreign%20Exchange%20Risk) Sales are primarily denominated in RMB, and future exchange rate fluctuations are not expected to have a material impact, with no hedging instruments used - The Group's sales are primarily denominated in RMB, and the Board does not expect future exchange rate fluctuations to have a material impact on the business, with no financial instruments used for hedging as of June 30, 2025[88](index=88&type=chunk) [Pledged Assets](index=35&type=section&id=3.5.5%20Pledged%20Assets) The Group pledged assets totaling RMB 16.210 billion for interest-bearing borrowings and RMB 7.1891 billion for bills payable - As of June 30, 2025, the Group had pledged assets with a total carrying amount of approximately **RMB 16.210 billion** as collateral for interest-bearing borrowings, and approximately **RMB 7.1891 billion** as collateral for bills payable[89](index=89&type=chunk) [Material Acquisitions and Disposals](index=35&type=section&id=3.6%20Material%20Acquisitions%20and%20Disposals) The Group had no material acquisitions or disposals during the reporting period and will continue to seek opportunities to dispose of non-core assets - For the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries, associates, and/or joint ventures[90](index=90&type=chunk) - The Group will continue to seek opportunities to dispose of non-core assets and businesses to enhance liquidity and allocate resources to its core businesses[90](index=90&type=chunk) [Material Investments Held](index=36&type=section&id=3.7%20Material%20Investments%20Held) The Group's investment properties form the core of its offline markets, with ongoing investment and upgrades planned for Hankoubei International Trade City - Investment properties constitute the main part of the Group's offline markets, and the Group will continue to invest in and upgrade Hankoubei International Trade City to enhance market value through modern facilities and professional management[91](index=91&type=chunk) [Contingent Liabilities](index=36&type=section&id=3.8%20Contingent%20Liabilities) The Group provided mortgage financing guarantees for pre-sold property buyers and financial guarantees for third parties - As of June 30, 2025, guarantees provided for mortgage financing granted to buyers of the Group's properties amounted to approximately **RMB 68.8 million**[93](index=93&type=chunk) - The Group provided financial guarantees to third parties amounting to approximately **RMB 67.1 million**[93](index=93&type=chunk) [Events After Reporting Period](index=37&type=section&id=3.9%20Events%20After%20Reporting%20Period) As of the announcement date, the Group had no significant events after the reporting period - As of the date of this announcement, the Group had no significant events after the reporting period[95](index=95&type=chunk) [Employees and Remuneration Policy](index=37&type=section&id=3.10%20Employees%20and%20Remuneration%20Policy) The Group employed 1,558 full-time employees, with employee benefit expenses of RMB 146.4 million, and has incentive schemes in place - As of June 30, 2025, the Group employed a total of **1,558** full-time employees, with employee benefit expenses of approximately **RMB 146.4 million** for the six months ended June 30, 2025[96](index=96&type=chunk) - The Group has adopted a share option scheme and a share award scheme to provide incentives, but no new share options or awarded shares have been granted as of June 30, 2025[96](index=96&type=chunk)[97](index=97&type=chunk) [Other Information](index=37&type=section&id=Other%20Information) This section covers corporate governance, compliance, significant events, and board composition [Compliance with Corporate Governance Code](index=37&type=section&id=4.1%20Compliance%20with%20Corporate%20Governance%20Code) The Company has adopted and complied with the Corporate Governance Code set out in Appendix C1 Part 2 of the HKEX Listing Rules - The Company has adopted and complied with the Corporate Governance Code set out in Part 2 of Appendix C1 to the HKEX Listing Rules for the six months ended June 30, 2025[98](index=98&type=chunk) [Compliance with Model Code for Securities Transactions by Directors](index=38&type=section&id=4.2%20Compliance%20with%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all directors confirmed compliance - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 to the Listing Rules, and all Directors confirmed compliance for the six months ended June 30, 2025[99](index=99&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=38&type=section&id=4.3%20Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the reporting period - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[100](index=100&type=chunk) [Review of Interim Results](index=38&type=section&id=4.4%20Review%20of%20Interim%20Results) The Review Committee has reviewed the Group's unaudited condensed consolidated interim results and discussed key financial reporting matters - The Review Committee has reviewed the Group's unaudited condensed consolidated interim results for the six months ended June 30, 2025, in accordance with Listing Rules 3.21 and 3.22 and its written terms of reference[101](index=101&type=chunk) [Interim Dividend](index=38&type=section&id=4.5%20Interim%20Dividend) The Board does not recommend an interim dividend for the six months ended June 30, 2025 - The Board does not recommend an interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[102](index=102&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=39&type=section&id=4.6%20Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This interim results announcement is published on the HKEX and Company websites, with the interim report to follow - This interim results announcement is published on the HKEX website and the Company's website, and the interim report will be published and dispatched to shareholders in due course[103](index=103&type=chunk) [Board Composition](index=39&type=section&id=4.7%20Board%20Composition) As of the announcement date, the Board of Directors comprises eight members, including five executive and three independent non-executive directors - As of the announcement date, the Board of Directors comprises eight members, including five executive directors and three independent non-executive directors[105](index=105&type=chunk)