智通财经APP获悉，9月7日至9日，优趣汇(02177)旗下加拿大保健食品Vanpearl携手"大分子实验室"开启 新加坡溯源专场再传捷报，实现总销售额突破400万元，销售数量超过8000瓶(1)，并在7日首发场持续 霸榜抖音保健食品带货榜TOP1，直播间流量与转化表现超高(2)。 备注： Vanpearl作为优趣汇重点孵化的加拿大保健食品品牌，其核心产品ERGO - VITALIS™基因胶囊，凝聚了 前沿科研智慧与创新成分，产品蕴含着修复DNA延缓衰老的专利配方，它能精准激活细胞本源的生命 因子，有效替换受损DNA基因片段，同时全方位保护DNA基因组稳定，从根本上提升细胞自我修复效 率与代谢效率，实现细胞DNA基因层面的抗衰老效果，堪称 "基因守护者"。 此次Vanpearl与大分子合作的新加坡溯源专场，不仅实现了流量与转化的双高表现，也进一步巩固了其 在高端保健品市场的品牌影响力。优趣汇也凭借着在供应链、品牌运营与跨境电商领域的整合能力，持 续推动自有品牌与国际科研资源对接。 (1)以上销售及数量数据取自9月7号-9月9号，数据来源于飞瓜 (2)9月7号基因胶囊新加坡研学专场首发8点-9点持续霸榜保健食品 ...

爱弗乐(Alforex)双效益生菌产品，是专门针对肠易激综合征(IBS)的解决方案，融合了经过科学验证的长 双歧杆菌35624™和1714™专研菌株，协同发挥作用。研究证实，它能改善肠道环境，在缓解腹痛、腹 泻、便秘、胀气等肠道不适症状方面表现出显著的效果。同时，它对舒压助眠、调节情绪起着积极的作 用。此外，作为全球知名益生菌，爱弗乐双效益生菌实现肠脑双效，还获得美国&世界肠胃病学组织推 荐。 1.数据来源于第3方飞瓜抖音版平台ALFLOREX双效益生菌在2025年9月8日-2025年9月9日期间的销售金额和销售件数; 2.抖音商品榜TOP1是指ALFLOREX双效益生菌在抖音店铺罗盘-商品榜单，海外膳食营养补充食品类目2025年9月8日 09:30-11:30期间的实时排名; 3.带货总榜TOP3和保健食品带货榜TOP1是指抖音帐号-王囡囡，在2025年9月8日09:30-11:30期间在抖音带货榜总榜和 保健食品榜单的实时排名。 智通财经APP获悉，优趣汇(02177)与普葆™达成战略合作后，旗下爱弗乐(Alforex)双效益生菌于 2025 年 9 月 8 日迎来首发专场，此次首发告捷，销售额突破 40 ...

Group 1 - The event "Big Consumption Investment Summit and 2025 Zhitong Xingyao Autumn Joint Strategy Meeting" was held in Hangzhou, focusing on the theme "New Consumption Species: The Evolution of Hong Kong Stocks" [1] - In 2025, China's consumption market is witnessing a blend of tradition and innovation, with electric vehicle penetration exceeding 47%, smart home sales growing in double digits, and rural consumption growth outpacing urban by 0.8 percentage points [1] - The Hong Kong stock market is becoming a witness to consumer power, with a 100-fold subscription for consumer IPOs in the first half of the year and 71% of new stocks closing higher on their first day [1] Group 2 - The main venue will feature keynote speeches and roundtable discussions on trends, while the sub-venue will showcase opportunities from 30 top companies [2] - Keynote speakers include executives from Tencent, GF Securities, and various leading companies, sharing insights and practical experiences [4] - The sub-venue will host presentations from 30 leading companies, including China Duty Free Group, Maogeping, and others, focusing on their business opportunities [5]

Core Viewpoint - The financial results of Youquhui (02177) for the first half of 2025 show a revenue of 580 million yuan and a net profit of 11.2 million yuan, indicating a "zero growth" appearance. However, excluding non-recurring items and terminated brand collaborations, revenue increased by 2.5% year-on-year, and net profit remained stable. The gross margin improved by 4.6 percentage points to 34.6% [1] Group 1: "Subtraction" Strategy - Youquhui has consistently focused on actively divesting low-margin brands and channels, which has led to improved profitability despite short-term revenue fluctuations. The gross margin has shown a significant upward trend, increasing from 23.9% in 2022 to 34.6% in the first half of 2025 [2] - The company terminated collaborations with low-margin brands in the personal care and beauty sectors, as well as ceased certain stagnant e-commerce operations, which has contributed to the enhancement of its gross margin [2] Group 2: "Addition" Strategy - Youquhui has identified the health sector as a key area for diversification, with a 42.9% revenue growth in its health segment in the first half of 2025. The self-owned brand Vanpearl generated 14 million yuan in revenue, driven by the successful launch of the ERGO-VITALIS capsule [3][4] - The company is expanding its portfolio by introducing new health brands and optimizing product selection strategies, leading to significant sales increases and breakthroughs in B2B channels [4] Group 3: Future Growth Potential - Youquhui's mid-term report indicates a clear long-term growth trajectory, with a focus on overseas expansion, particularly in Southeast Asia and North America. The company plans to enhance brand presence and penetration through localized compliance and collaboration with local KOLs [5][6] - The company has shifted its investment strategy to prioritize acquisitions and partnerships in the health and beauty sectors, signaling a proactive approach to seizing growth opportunities [6]

Core Viewpoint - The financial results of Youquhui (02177) for the first half of 2025 show a revenue of 580 million yuan and a net profit of 11.2 million yuan, indicating a "zero growth" situation. However, excluding non-recurring items and terminated brand collaborations, revenue increased by 2.5% year-on-year, and net profit remained stable. The gross margin improved by 4.6 percentage points to 34.6% [1] Group 1: "Subtraction" Strategy - Youquhui has been actively divesting low-margin brands and channels, which has led to a continuous improvement in profitability. The gross margin has shown a significant upward trend, increasing from 23.9% in 2022 to 34.6% in the first half of 2025 [2] - The company terminated collaborations with low-margin brands in the personal care and beauty sectors, as well as ceased operations in stagnant e-commerce businesses, indicating a strategic shift towards higher-margin products [2] - The rising gross margin trend is a key indicator of potential future improvements in other performance metrics, despite short-term fluctuations in revenue and net profit [2] Group 2: "Addition" Strategy in Health Sector - Youquhui has identified the health sector as a primary area for diversification, capitalizing on the growing demand for functional health foods. The health segment's revenue grew by 42.9% in the first half of 2025, driven by the strong performance of its proprietary brand Vanpearl, which generated 14 million yuan in revenue [3][4] - The successful launch of the ERGO-VITALIS™ capsule, which utilizes ergothioneine as a key ingredient, has validated the company's health product development model [3] - Youquhui is expanding its partnerships with established health brands, enhancing its market presence and brand influence in the health sector [3] Group 3: Future Growth Potential - The company's mid-year report reflects a strategic investment phase, with a clear long-term growth trajectory despite the absence of immediate steep growth in core financial metrics [5] - Youquhui plans to prioritize overseas expansion, particularly in Southeast Asia and North America, utilizing localized compliance and collaboration with local KOLs to enhance brand visibility and market penetration [6] - The company has shifted its funding strategy from seeking investments in technology companies to focusing on acquisitions and strategic partnerships in the health and beauty sectors, indicating a proactive approach to seizing growth opportunities [6]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | | | 致：香港交易及結算所有限公司 公司名稱: 优趣汇控股有限公司 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) | 02177 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 3,800,000,000 | HKD | | 0.0001 | HKD | | 380,000 | | 增加 / 減少 (-) | | | 0 | | | | HKD | | 0 | | 本月底結存 | | | 3,800,000,000 | HKD | | 0.0001 | HKD | | 380,000 | 本月底法定/註冊股本總額： HKD 380,000 FF ...

Group 1 - The company reported a revenue of RMB 580 million for the six months ending June 30, 2025, representing a year-on-year decrease of 5.4% [1] - Gross profit amounted to RMB 200.5 million, showing a year-on-year increase of 9.1% [1] - Profit attributable to owners of the company was RMB 11.203 million, reflecting a year-on-year decrease of 54.1% [1] - Basic earnings per share were RMB 0.07 [1]

Core Insights - The company reported a revenue of approximately 580 million and a net profit of 11.2 million for the first half of 2025, with basic earnings per share at 0.07 yuan [1] - The company has systematically optimized its brand matrix, terminating partnerships with low-margin brands, resulting in a 2.5% revenue increase compared to the same period last year [1] - The gross margin for the first half of 2025 was 34.6%, an increase of 4.6 percentage points from 30.0% in the same period last year [1] Revenue and Profitability - The company actively optimized its existing brand and channel structure, focusing on enhancing cooperation with core brand partners and expanding overseas markets [1] - New health brands were introduced, contributing an additional revenue of 12.5 million [1] - Revenue from Douyin, Pinduoduo, and overseas businesses accounted for 12.4% of total revenue, up from 11.1% in the same period last year, marking an increase of 1.3 percentage points [1] Product Development - The company launched a Canadian anti-aging health food brand, Vanpearl, featuring the active ingredient ergothioneine, generating sales revenue of 14 million [2] - A strategic partnership was established with Novo Nordisk's high-end probiotic brand, focusing on high-net-worth consumers in China who prioritize gut health [2] - The company is strengthening its competitive advantage in the high-end health food sector through a diversified product portfolio [2]

Group 1 - The company reported a revenue of approximately 580 million and a net profit of 11.2 million for the first half of 2025, with basic earnings per share of 0.07 yuan [1] - The company has systematically optimized its brand matrix, terminating partnerships with low-margin brands, resulting in a 2.5% revenue increase compared to the same period last year [1] - The gross margin for the first half of 2025 was 34.6%, an increase of 4.6 percentage points from 30.0% in the same period last year [1] Group 2 - The company has optimized its existing brand and channel structure, focusing on enhancing cooperation with core brand partners and expanding overseas markets [1] - A new health brand, Vanpearl, was launched, generating sales revenue of 14 million, significantly supporting the company's performance [2] - The company has established a strategic partnership with a high-end probiotic brand, focusing on high-net-worth consumers in the domestic market [2]

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) The company's H1 2025 revenue decreased by **5.4%** to **RMB 580.1 million**, while gross margin improved by **4.6 percentage points** to **34.6%**, and net profit declined by **52.7%** to **RMB 11.2 million** Key Financial Data for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 580.1 | 613.3 | -5.4% | | Gross Margin | 34.6% | 30.0% | +4.6 percentage points | | Net Profit | 11.2 | 23.7 | -52.7% | - Excluding the impact of terminated brand collaborations, revenue increased by **2.5%** year-on-year, indicating a slowdown in the decline trend[3](index=3&type=chunk) - Gross margin steadily improved, achieved through renegotiating transaction terms, adjusting product structure, and focusing on profitable sales channels[4](index=4&type=chunk) - Net profit declined by **52.7%**, but remained largely flat after excluding non-operating items, including equity transfer in the prior period and increased impairment losses[5](index=5&type=chunk) [Interim Condensed Consolidated Financial Statements](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) This section presents the company's interim condensed consolidated financial statements, including the statement of comprehensive income, statement of financial position, statement of changes in equity, and statement of cash flows for the reporting period [Interim Condensed Consolidated Statement of Comprehensive Income](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) During the reporting period, the company's revenue was **RMB 580.1 million**, gross profit was **RMB 200.5 million**, operating profit was **RMB 12.3 million**, and profit for the period was **RMB 11.2 million**, with basic and diluted earnings per share at **RMB 0.07** Summary of Interim Condensed Consolidated Statement of Comprehensive Income | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 580,075 | 613,304 | | Cost of Sales | (379,600) | (429,583) | | Gross Profit | 200,475 | 183,721 | | Selling and Marketing Expenses | (158,492) | (135,237) | | Operating Profit | 12,272 | 16,428 | | Profit for the Period | 11,203 | 23,709 | | Basic Earnings Per Share (RMB) | 0.07 | 0.15 | | Diluted Earnings Per Share (RMB) | 0.07 | 0.15 | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets were **RMB 1,178.6 million**, a slight decrease from December 31, 2024, with total equity at **RMB 737.8 million** and total liabilities at **RMB 440.7 million** Summary of Interim Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Assets | 1,178,556 | 1,189,953 | | Total Equity | 737,847 | 720,473 | | Total Liabilities | 440,709 | 469,480 | | Cash and Cash Equivalents | 364,716 | 438,576 | | Inventories | 298,730 | 264,986 | | Trade and Other Receivables | 270,235 | 233,873 | | Trade and Other Payables | 196,407 | 246,280 | [Interim Condensed Consolidated Statement of Changes in Equity](index=6&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) As of June 30, 2025, total equity attributable to owners of the company was **RMB 736.8 million**, an increase from the beginning of the year, primarily due to profit for the period and other comprehensive income Summary of Interim Condensed Consolidated Statement of Changes in Equity | Indicator | June 30, 2025 (RMB thousand) | January 1, 2025 (RMB thousand) | | :--- | :--- | :--- | | Total Equity Attributable to Owners of the Company | 736,840 | 719,467 | | Profit for the Period | 11,203 | – | | Other Comprehensive Income | 6,170 | – | [Interim Condensed Consolidated Statement of Cash Flows](index=7&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash outflow from operating activities was **RMB 90.2 million**, net cash outflow from investing activities was **RMB 0.6 million**, and net cash inflow from financing activities was **RMB 16.7 million**, with cash and cash equivalents at period-end totaling **RMB 364.7 million** Summary of Interim Condensed Consolidated Statement of Cash Flows | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Cash from Operating Activities | (90,177) | 88,648 | | Net Cash Used in Investing Activities | (570) | (8,728) | | Net Cash from Financing Activities | 16,709 | (52,808) | | Net Change in Cash and Cash Equivalents | (74,038) | 27,112 | | Cash and Cash Equivalents at Period-End | 364,716 | 365,413 | [Notes to the Interim Condensed Consolidated Financial Information](index=8&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) This section provides detailed notes to the interim condensed consolidated financial information, covering general information, basis of presentation, critical accounting estimates, financial risk management, segment information, revenue breakdown, expenses by nature, finance income and costs, income tax, earnings per share, inventories, trade and other receivables, borrowings, trade and other payables, dividends, and related party transactions [1 General Information](index=8&type=section&id=1%20General%20Information) The company was incorporated in the Cayman Islands on October 31, 2019, primarily engaging in B2B and B2C commodity sales, online brand operations, and digital marketing services in China, with its shares listed on the Main Board of the Hong Kong Stock Exchange on July 12, 2021 - Company's place of incorporation: Cayman Islands, date of incorporation: October 31, 2019[16](index=16&type=chunk) - Principal activities: Commodity sales (B2B and B2C), online brand operation services, and digital marketing services in China[16](index=16&type=chunk) - Listing information: Listed on the Main Board of the Hong Kong Stock Exchange on July 12, 2021[17](index=17&type=chunk) - This interim condensed consolidated financial information is unaudited and was approved by the Board of Directors on August 29, 2025[19](index=19&type=chunk)[20](index=20&type=chunk) [2 Basis of Presentation](index=8&type=section&id=2%20Basis%20of%20Presentation) The interim condensed consolidated financial statements are prepared in accordance with IAS 34, applying consistent accounting policies with the 2024 annual consolidated financial statements, with the initial adoption of IAS 21 amendment 'Lack of Exchangeability' having no material impact on performance or financial position - Basis of preparation: International Accounting Standard 34 – "Interim Financial Reporting"[24](index=24&type=chunk) - Accounting policies: Consistent with those applied in the annual consolidated financial statements as of December 31, 2024[21](index=21&type=chunk) - Initial adoption of IAS 21 amendment "Lack of Exchangeability" had no material impact on the Group's performance and financial position[21](index=21&type=chunk)[22](index=22&type=chunk) [3 Critical Accounting Estimates and Judgements](index=9&type=section&id=3%20Critical%20Accounting%20Estimates%20and%20Judgements) The company's critical accounting judgments and estimates have remained substantially unchanged since December 31, 2024 - Critical accounting judgments and estimates: Remained substantially unchanged since December 31, 2024[25](index=25&type=chunk) [4 Financial Risk Management and Financial Instruments](index=9&type=section&id=4%20Financial%20Risk%20Management%20and%20Financial%20Instruments) The Group is exposed to market risks (foreign exchange, interest rate), credit risk, and liquidity risk, with no changes in risk management policies since December 31, 2024, and fair value measurements of financial assets, including investments in private equity funds, are primarily based on unobservable inputs (Level 3) [4.1 Financial Risk Factors](index=9&type=section&id=4.1%20Financial%20Risk%20Factors) The Group's operations are exposed to various financial risks, including market, credit, and liquidity risks, with no changes in risk management policies since the last reporting period - The Group's operating activities are exposed to market risks (including foreign exchange risk and cash flow and fair value interest rate risk), credit risk, and liquidity risk[26](index=26&type=chunk) - There have been no changes in risk management policies since December 31, 2024[27](index=27&type=chunk) [4.2 Fair Value Estimation](index=9&type=section&id=4.2%20Fair%20Value%20Estimation) Fair value measurements are categorized into three levels based on input observability, with the Group's investments in private equity funds primarily valued using Level 3 unobservable inputs - Fair value hierarchy classification: Level 1 (quoted prices in inactive markets), Level 2 (observable inputs), Level 3 (unobservable inputs)[28](index=28&type=chunk) Financial Assets Measured at Fair Value (Investments in Private Equity Funds) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Investments in Private Equity Funds (Level 3) | 34,719 | 34,864 | - The Group's financial assets measured at fair value include investments in private equity funds, whose fair values are estimated based on unobservable inputs (Level 3)[31](index=31&type=chunk) - Valuation techniques include market quotes for similar instruments, discounted cash flow models, and unobservable inputs, with no changes in valuation techniques during the reporting period[32](index=32&type=chunk)[33](index=33&type=chunk) Movement in Level 3 Financial Assets (Investment Funds) | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Balance at January 1 | 34,864 | 35,414 | | Exchange Differences | (145) | 44 | | Balance at June 30 | 34,719 | 35,458 | [4.3 Fair Value of Financial Assets and Liabilities Measured at Amortized Cost](index=11&type=section&id=4.3%20Fair%20Value%20of%20Financial%20Assets%20and%20Liabilities%20Measured%20at%20Amortized%20Cost) Due to their short maturity, the carrying amounts of the Group's current financial assets and liabilities approximate their fair values - Due to their short maturity, the carrying amounts of the Group's current financial assets (including cash and cash equivalents, restricted cash, trade and other receivables) and financial liabilities (including borrowings, lease liabilities, trade and other payables) approximate their fair values[36](index=36&type=chunk) [5 Segment Information](index=11&type=section&id=5%20Segment%20Information) The Group's chief operating decision maker is the CEO, with its principal operations and non-current assets primarily located in China, and revenue predominantly generated from China, hence no segment information is presented - Chief operating decision maker: Chief Executive Officer[37](index=37&type=chunk) - The Group primarily conducts its business in China, with most non-current assets and revenue located in China[37](index=37&type=chunk) - Therefore, no segment information is presented for the six months ended June 30, 2025 and 2024[38](index=38&type=chunk) [6 Revenue](index=12&type=section&id=6%20Revenue) For the six months ended June 30, 2025, the Group's total revenue was **RMB 580.1 million**, primarily from B2B and B2C commodity sales and service provision, with revenue mainly generated in China and Customer A contributing over **10%** of total revenue [6.1 Revenue by Business Model](index=12&type=section&id=6.1%20Revenue%20by%20Business%20Model) The Group's revenue is primarily derived from B2B and B2C commodity sales, with a smaller portion from service provision Revenue by Business Model | Business Model | H1 2025 (RMB thousand) | H1 2025 (%) | H1 2024 (RMB thousand) | H1 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Commodity Sales (B2B) | 287,721 | 49.6 | 271,246 | 44.3 | | Commodity Sales (B2C) | 290,369 | 50.0 | 337,666 | 55.1 | | Service Provision | 1,985 | 0.4 | 4,392 | 0.6 | | **Total** | **580,075** | **100.0** | **613,304** | **100.0** | [6.2 Revenue by Geographical Market](index=12&type=section&id=6.2%20Revenue%20by%20Geographical%20Market) The Group's revenue for the reporting periods was predominantly generated within China - The Group's revenue for the six months ended June 30, 2025 and 2024 was primarily generated in China[42](index=42&type=chunk) [6.3 Major Customer Information](index=12&type=section&id=6.3%20Major%20Customer%20Information) Customer A was a significant contributor to the Group's total revenue in the first half of 2025 Major Customer Revenue | Customer | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Customer A | 180,982 | 196,072 | - Customer A contributed **RMB 181.0 million** in revenue in H1 2025, accounting for over **10%** of total revenue[44](index=44&type=chunk) [7 Expenses by Nature](index=12&type=section&id=7%20Expenses%20by%20Nature) For the six months ended June 30, 2025, cost of goods sold was **RMB 379.1 million**, selling and marketing expenses were **RMB 84.3 million**, and warehousing and logistics expenses were **RMB 50.9 million**, totaling **RMB 561.0 million** in expenses Expenses by Nature | Expense Category | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of Goods Sold | 379,149 | 429,094 | | Selling and Marketing Expenses | 84,332 | 45,794 | | Warehousing and Logistics Expenses | 50,915 | 60,197 | | Employee Benefit Expenses | 36,273 | 45,858 | | Depreciation and Amortization Expenses | 3,768 | 3,862 | | Office Expenses | 902 | 1,616 | | Auditor's Remuneration | 1,060 | 940 | | Others | 4,621 | 5,363 | | **Total** | **561,020** | **592,724** | [8 Finance Income and Costs](index=13&type=section&id=8%20Finance%20Income%20and%20Costs) For the six months ended June 30, 2025, net finance income was **RMB 1.3 million**, primarily comprising **RMB 4.5 million** in bank interest income and **RMB 3.2 million** in interest expense on borrowings Finance Income and Costs | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Bank Interest Income | 4,524 | 5,538 | | Interest Expense on Borrowings | (3,217) | (2,697) | | **Net Finance Income** | **1,307** | **2,841** | [9 Income Tax Expense](index=13&type=section&id=9%20Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense was **RMB 2.3 million**, primarily comprising current and deferred income tax, with the Group subject to varying tax rates across jurisdictions, including Hong Kong profits tax at **8.25%**/ **16.5%**, Japanese corporate income tax at approximately **30%**, and PRC corporate income tax at **25%** [9.1 Tax Rates in Various Jurisdictions](index=13&type=section&id=9.1%20Tax%20Rates%20in%20Various%20Jurisdictions) The Group operates under different tax regimes, with specific tax rates applicable in various jurisdictions such as Hong Kong, Japan, and China Income Tax Expense | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Current Income Tax | (5,106) | (4,243) | | Deferred Income Tax | 2,851 | (333) | | **Income Tax Expense** | **(2,255)** | **(4,576)** | - Cayman Islands and British Virgin Islands: No tax payable on income or capital gains[49](index=49&type=chunk)[50](index=50&type=chunk) - Hong Kong: Taxable profits up to **HKD 2,000,000** are taxed at **8.25%**, with the remainder at **16.5%**[51](index=51&type=chunk) - Japan: Effective statutory tax rate of approximately **30%**[52](index=52&type=chunk) - China: Corporate income tax at a general rate of **25%**; withholding tax rate of **5%** or **10%**[53](index=53&type=chunk)[54](index=54&type=chunk) [10 Earnings Per Share](index=14&type=section&id=10%20Earnings%20Per%20Share) For the six months ended June 30, 2025, basic and diluted earnings per share were **RMB 0.07**, a decrease from **RMB 0.15** in the prior year, with no potential dilutive ordinary shares during the period Earnings Per Share | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Profit Attributable to Owners of the Company (RMB thousand) | 11,203 | 24,422 | | Weighted Average Number of Ordinary Shares Issued | 165,894,700 | 165,894,700 | | Basic Earnings Per Share (RMB) | 0.07 | 0.15 | | Diluted Earnings Per Share (RMB) | 0.07 | 0.15 | - For the six months ended June 30, 2025 and 2024, the company had no potential dilutive ordinary shares, thus diluted earnings per share equal basic earnings per share[55](index=55&type=chunk) [11 Inventories](index=14&type=section&id=11%20Inventories) As of June 30, 2025, total inventories amounted to **RMB 298.7 million**, an increase from December 31, 2024, with an inventory provision of **RMB 7.4 million** Inventory Composition | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Goods | 306,102 | 272,852 | | Less: Provision | (7,372) | (7,866) | | **Total** | **298,730** | **264,986** | Movement in Inventory Provision | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | At Beginning of Period | 7,866 | 26,932 | | Expense During Period – Reversal from P&L | (823) | (9,851) | | Expense During Period – Exchange Differences | 329 | 519 | | **At End of Period** | **7,372** | **17,600** | [12 Trade and Other Receivables](index=15&type=section&id=12%20Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables were **RMB 270.2 million**, an increase from December 31, 2024, comprising **RMB 191.3 million** in trade receivables and **RMB 131.9 million** in other receivables, with total impairment provisions of **RMB 53.0 million** [12.1 Total Trade and Other Receivables](index=15&type=section&id=12.1%20Total%20Trade%20and%20Other%20Receivables) The total amount of trade and other receivables increased as of June 30, 2025, with a corresponding increase in impairment provisions Total Trade and Other Receivables | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables | 191,312 | 169,239 | | Other Receivables | 131,930 | 110,768 | | Less: Impairment Provisions | (53,007) | (46,134) | | **Total Trade and Other Receivables** | **270,235** | **233,873** | [12.2 Trade Terms and Credit Policy](index=15&type=section&id=12.2%20Trade%20Terms%20and%20Credit%20Policy) The Group primarily extends credit to customers, with credit periods generally ranging from 7 to 90 days, and maintains strict control over outstanding receivables without holding collateral - The Group's trade terms with customers are primarily credit-based, with credit periods generally 7 days from invoice date, extendable up to 90 days[59](index=59&type=chunk) - The Group seeks to maintain strict control over its outstanding receivables, with overdue balances regularly reviewed by senior management[59](index=59&type=chunk) - The Group does not hold any collateral or other credit enhancements for its trade receivables balances[59](index=59&type=chunk) [12.3 Ageing Analysis of Trade Receivables](index=15&type=section&id=12.3%20Ageing%20Analysis%20of%20Trade%20Receivables) The ageing analysis of trade receivables shows a significant portion due within three months, with a notable amount over one year Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 3 Months | 111,179 | 100,922 | | 3 to 6 Months | 15,557 | 3,868 | | 6 Months to 1 Year | 851 | 223 | | Over 1 Year | 63,725 | 64,226 | | **Total** | **191,312** | **169,239** | [12.4 Ageing Analysis of Other Receivables](index=16&type=section&id=12.4%20Ageing%20Analysis%20of%20Other%20Receivables) The majority of other receivables are due within three months, with a smaller portion outstanding for over one year Ageing Analysis of Other Receivables | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 3 Months | 128,930 | 107,610 | | 3 to 6 Months | – | 158 | | 6 Months to 1 Year | – | 3,000 | | Over 1 Year | 3,000 | – | | **Total** | **131,930** | **110,768** | [12.5 Movement in Impairment Provisions](index=16&type=section&id=12.5%20Movement%20in%20Impairment%20Provisions) Impairment provisions for trade and other receivables increased during the period, reflecting additional deductions from profit or loss Movement in Impairment Provisions for Trade and Other Receivables | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | At Beginning of Period | 46,134 | 34,894 | | Expense During Period – Deducted from P&L | 6,838 | 3,756 | | Expense During Period – Exchange Differences | 35 | (25) | | **At End of Period** | **53,007** | **38,625** | Composition of Impairment Provisions for Trade and Other Receivables | Category | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables | 5,905 | 3,542 | | Other Receivables | 933 | 214 | | **Total** | **6,838** | **3,756** | [13 Borrowings](index=16&type=section&id=13%20Borrowings) As of June 30, 2025, the Group's total borrowings amounted to **RMB 223.4 million**, comprising **RMB 187.7 million** in secured or guaranteed borrowings and **RMB 35.7 million** in unsecured borrowings Borrowings Composition | Borrowing Type | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Secured or Guaranteed (Current Portion) | 186,200 | 168,000 | | Secured or Guaranteed (Non-Current Portion) | 1,488 | 4,697 | | Unsecured (Current Portion) | 9,919 | – | | Unsecured (Non-Current Portion) | 25,792 | 23,608 | | **Total Borrowings** | **223,399** | **200,398** | [14 Trade and Other Payables](index=17&type=section&id=14%20Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables were **RMB 196.4 million**, a decrease from December 31, 2024, with trade payables at **RMB 129.1 million** and other payables at **RMB 49.2 million** Trade and Other Payables Composition | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Payables | 129,070 | 179,673 | | Other Payables | 49,188 | 38,467 | | Accrued Salaries | 11,236 | 21,345 | | Other Taxes Payable | 6,726 | 6,539 | | Interest Payable | 187 | 256 | | **Total** | **196,407** | **246,280** | Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 3 Months | 95,378 | 44,005 | | 3 to 6 Months | 53 | 135,668 | | 6 Months to 1 Year | 33,639 | – | | **Total** | **129,070** | **179,673** | [15 Dividends](index=18&type=section&id=15%20Dividends) The Board resolved not to declare an interim dividend for the six months ended June 30, 2025 (H1 2024: **HKD 0.25** per share), while a final dividend of **HKD 0.5** per share for the year ended December 31, 2024, was paid on July 16, 2025 - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025 (H1 2024: **HKD 0.25**)[63](index=63&type=chunk) - The company declared a dividend of **HKD 0.5** per share for the year ended December 31, 2024, which was paid on July 16, 2025[63](index=63&type=chunk) [16 Related Party Transactions](index=18&type=section&id=16%20Related%20Party%20Transactions) The Group engages in related party transactions with its controlling shareholder Mr. Wang Yong, shareholder TCI, and its associates, primarily involving sales of goods, purchases of goods and services, provision of deposits, borrowings, and receivables/payables [16.1 Names and Relationships of Related Parties](index=18&type=section&id=16.1%20Names%20and%20Relationships%20of%20Related%20Parties) Key related parties include the controlling shareholder, a significant shareholder, and an associate of the Group's supply chain entity - Mr. Wang Yong: Controlling shareholder of the Group[64](index=64&type=chunk) - Transcosmos Inc (TCI): Shareholder of the Group[64](index=64&type=chunk) - Shanghai Xuyi Industrial Co., Ltd.: An associate of Uquhu Supply Chain[64](index=64&type=chunk)[66](index=66&type=chunk) [16.2 Details of Related Party Transactions](index=18&type=section&id=16.2%20Details%20of%20Related%20Party%20Transactions) Transactions with related parties include sales and purchases of goods and services, provision of deposits, and borrowings, with corresponding balances in receivables and payables Related Party Transactions | Transaction Type | Related Party | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | :--- | | Sales of Goods and Service Provision | Shanghai Xuyi | – | 49 | | Return of Goods | Shanghai Xuyi | (60) | – | | Purchases of Goods and Services | TCI | 31,893 | 23,171 | | Deposits Provided | Shanghai Xuyi | 48,000 | 50,000 | | Borrowings | Uquhu International Hong Kong | – | 18,290 | Related Party Transaction Balances | Balance Type | Related Party | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | :--- | | Trade Receivables | Shanghai Xuyi | 61,141 | 61,209 | | Other Receivables | TCI | 5,336 | 2,663 | | Trade Payables | TCI | 7,760 | 4,658 | | Other Payables | TCI | 32 | 347 | | Dividends Receivable | Uquhu International Hong Kong | 20,139 | 20,139 | [Management Discussion and Analysis](index=20&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the company's performance, a detailed analysis of key financial data, and insights into liquidity and financial resources for the reporting period [Overview](index=20&type=section&id=Overview) In H1 2025, despite steady economic growth and intensified market competition in China, the company strategically restructured its brand portfolio, actively expanded into the health sector by introducing new health brands and investing in its own health brands, optimized brand operations by enhancing supply chain efficiency and expanding overseas markets, with its own brand Vanpearl contributing **RMB 14.0 million** in revenue and forming a strategic partnership with Novo Xinyuan Probio - Market environment: China's economy experienced steady growth, but consumer price sensitivity continued to rise, intensifying industry competition and leading to a "price-for-volume" deep involution pattern[68](index=68&type=chunk) - Strategic initiatives: Systematically reviewed the brand matrix, actively expanded into the health sector, introduced new health business brands, and increased strategic investment in proprietary health brands such as Vanpearl[68](index=68&type=chunk)[70](index=70&type=chunk) - Brand operation services: Optimized low-gross-margin brands and channels, deepened cooperation with core brand partners, continuously expanded overseas markets, and improved supply chain operational efficiency[69](index=69&type=chunk) - Newly introduced health brands contributed **RMB 12.5 million** in revenue[69](index=69&type=chunk) - Proprietary health food brand Vanpearl achieved sales revenue of **RMB 14.0 million**[70](index=70&type=chunk) - Revenue from Douyin, Pinduoduo, and overseas businesses accounted for **12.4%** of the Group's total revenue, an increase of **1.3 percentage points** year-on-year[69](index=69&type=chunk) Key Financial Indicators for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 580.1 | 613.3 | -5.4% | | Gross Margin | 34.6% | 30.0% | +4.6 percentage points | | Net Profit | 11.2 | 23.7 | -52.7% | [Analysis of Key Financial Data](index=21&type=section&id=Analysis%20of%20Key%20Financial%20Data) This section provides a detailed analysis of key financial metrics including revenue, gross profit and margin, operating profit, and earnings per share, noting a slowdown in revenue decline driven by improved existing brand operational efficiency and new brand incubation, significant gross margin growth due to optimized transaction terms, product structure adjustments, and channel profit restructuring, and a decrease in operating profit and EPS impacted by increased impairment losses and termination of certain brand collaborations [Revenue](index=21&type=section&id=Revenue) Overall revenue for H1 2025 decreased by **5.4%** year-on-year, but the decline trend slowed due to improved operational efficiency of existing brands and the successful incubation of new health food brands - Overall revenue for H1 2025 was **RMB 580.1 million**, a **5.4%** decrease year-on-year, with the decline trend slowing[72](index=72&type=chunk) - The slowdown in revenue decline was primarily due to: improved operational efficiency of existing brands and strengthened cooperation in beauty and personal care; and the newly incubated proprietary health food brand contributing **RMB 14.0 million** in revenue (a **729.1%** year-on-year increase)[72](index=72&type=chunk) - The revenue decline was partly due to: strategic adjustments in cooperation, leading to the termination of collaboration with a personal care brand[72](index=72&type=chunk) Sales of Goods and Services Revenue by Product Category | Product Category | H1 2025 (RMB thousand) | H1 2025 (%) | H1 2024 (RMB thousand) | H1 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Adult Personal Care Products | 357,390 | 61.5 | 399,409 | 65.3 | | Infant and Child Personal Care Products | 44,464 | 7.7 | 63,236 | 10.3 | | Beauty Products | 58,144 | 10.0 | 50,899 | 8.3 | | Health Products | 86,902 | 15.0 | 60,816 | 9.9 | | Others | 31,190 | 5.4 | 34,552 | 5.6 | | Service Provision | 1,985 | 0.4 | 4,392 | 0.6 | | **Total** | **580,075** | **100.0** | **613,304** | **100.0** | - Health product sales revenue increased by **42.9%** year-on-year, primarily due to **RMB 14.0 million** contributed by the newly incubated proprietary health food brand Vanpearl and an additional **RMB 12.5 million** from newly introduced health brands[77](index=77&type=chunk) - Service revenue decreased by **54.8%** year-on-year, mainly due to the termination of certain e-commerce operation businesses with no growth[77](index=77&type=chunk) [Gross Profit and Gross Margin](index=23&type=section&id=Gross%20Profit%20and%20Gross%20Margin) The overall gross margin increased by **4.6 percentage points** to **34.6%**, driven by optimized transaction terms, product structure adjustments, and a focus on high-margin channels - Overall gross margin was **34.6%**, an increase of **4.6 percentage points** from **30.0%** in the prior period[78](index=78&type=chunk) - Gross margin improvement was primarily due to: strengthened collaboration with brand partners and optimized transaction terms for key products; continuous optimization of product structure, with an increased sales proportion of high-margin health products; and restructuring of channel profit, increasing the revenue share from high-margin channels[78](index=78&type=chunk) Gross Profit and Gross Margin by Business Model | Business Model | H1 2025 (RMB thousand) | H1 2025 (%) | H1 2024 (RMB thousand) | H1 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Commodity Sales (B2B) | 41,809 | 14.5 | 40,748 | 15.0 | | Commodity Sales (B2C) | 157,085 | 54.1 | 139,434 | 41.3 | | Service Provision | 1,581 | 79.6 | 3,539 | 80.6 | | **Total** | **200,475** | **34.6** | **183,721** | **30.0** | Gross Profit and Gross Margin by Product Category | Product Category | H1 2025 (RMB thousand) | H1 2025 (%) | H1 2024 (RMB thousand) | H1 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Adult Personal Care Products | 110,456 | 30.9 | 100,001 | 25.0 | | Infant and Child Personal Care Products | 16,664 | 37.5 | 20,978 | 33.2 | | Beauty Products | 19,407 | 33.4 | 17,543 | 34.5 | | Health Products | 36,112 | 41.6 | 24,710 | 40.6 | | Others | 16,255 | 52.1 | 16,950 | 49.1 | | Service Provision | 1,581 | 79.6 | 3,539 | 80.6 | | **Total** | **200,475** | **34.6** | **183,721** | **30.0** | - Gross margin for adult personal care products increased by **5.9 percentage points**, primarily due to deeper cooperation with brand partners, improved transaction terms, and channel structure upgrades[80](index=80&type=chunk) - Gross margin for health products increased by **1.0 percentage point**, mainly due to higher gross margins from newly introduced health brands and proprietary health food brands, as well as ample supply of high-margin products in cross-border health categories[81](index=81&type=chunk) [Operating Profit and Earnings Per Share](index=24&type=section&id=Operating%20Profit%20and%20Earnings%20Per%20Share) Operating profit decreased by **RMB 4.1 million** to **RMB 12.3 million**, primarily due to increased impairment losses and the termination of certain brand collaborations, while basic earnings per share also declined - Operating profit was **RMB 12.3 million**, a year-on-year decrease of **RMB 4.1 million**[82](index=82&type=chunk) - The decrease in operating profit was mainly due to an increase in impairment losses of **RMB 3.1 million** compared to the prior period, and the termination of cooperation with certain brands[82](index=82&type=chunk) - Excluding the impact of terminating cooperation with a specific brand, overall operating profit increased by **13.6%** year-on-year[82](index=82&type=chunk) - Basic earnings per share were **RMB 0.07**, compared to **RMB 0.15** in the prior period[82](index=82&type=chunk) [Liquidity and Financial Resources](index=24&type=section&id=Liquidity%20and%20Financial%20Resources) The Group primarily meets its cash requirements through cash generated from operations and bank borrowings, with cash and cash equivalents at **RMB 364.7 million** as of June 30, 2025, and a low gearing ratio indicating financial stability, while this section also covers capital expenditure, significant investments, employee policies, foreign exchange risk, receivables management, and contingent liabilities [Cash Flows](index=24&type=section&id=Cash%20Flows) Net cash outflow from operating activities was **RMB 90.2 million**, primarily due to increased inventory purchases for new brand launches and extended collection cycles for B2B trade receivables, while financing activities generated net cash inflow Cash Flow Summary | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Cash from Operating Activities | (90,177) | 88,648 | | Net Cash Used in Investing Activities | (570) | (8,728) | | Net Cash from Financing Activities | 16,709 | (52,808) | | Cash and Cash Equivalents at Period-End | 364,716 | 365,413 | - Net cash used in operating activities was **RMB 90.2 million**, primarily due to increased inventory purchases for new brand launches and extended collection cycles for trade receivables from expanded B2B business[84](index=84&type=chunk) - Net cash used in investing activities was **RMB 0.6 million**, mainly for the purchase of intangible asset software[85](index=85&type=chunk) - Net cash from financing activities was **RMB 16.7 million**, primarily due to increased funding needs for new business expansion, leading to a net increase in borrowings[85](index=85&type=chunk) [Capital Structure](index=25&type=section&id=Capital%20Structure) The Group maintains a low gearing ratio and ample cash balance, indicating a robust capital structure - As of June 30, 2025, the Group's gearing ratio was **-18.6%** (December 31, 2024: **-32.5%**), indicating a low level of borrowings and a relatively abundant cash balance on hand[86](index=86&type=chunk) [Bank and Other Borrowings, Charges on Assets](index=25&type=section&id=Bank%20and%20Other%20Borrowings%2C%20Charges%20on%20Assets) The Group's total borrowings primarily consist of bank loans, with a significant portion secured or guaranteed, and maintains substantial unutilized bank facilities - As of June 30, 2025, the Group's total borrowings amounted to **RMB 223.4 million**, primarily comprising bank borrowings[87](index=87&type=chunk) - Of this, **RMB 187.7 million** in borrowings are guaranteed by the company and its subsidiaries, with interest rates primarily fixed[87](index=87&type=chunk) - As of June 30, 2025, the Group's unutilized bank facilities amounted to **RMB 155.4 million**[88](index=88&type=chunk) [Capital Expenditure and Capital Commitments](index=26&type=section&id=Capital%20Expenditure%20and%20Capital%20Commitments) The Group incurred minimal capital expenditure during the reporting period and had no significant capital commitments as of June 30, 2025 - For the six months ended June 30, 2025, the Group's capital expenditure was **RMB 0.6 million** (H1 2024: zero)[89](index=89&type=chunk) - As of June 30, 2025, the Group had no significant capital commitments[89](index=89&type=chunk) [Future Plans for Material Investments and Capital Assets](index=26&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) The Group has no other significant plans for material investments or capital assets as of the reporting date - As of June 30, 2025, the Group had no other plans for material investments and capital assets[90](index=90&type=chunk) [Material Investments Held](index=26&type=section&id=Material%20Investments%20Held) The Group did not hold any material investments in the equity of other companies during the reporting period - For the six months ended June 30, 2025, the Group did not hold any material investments in the equity of any other companies[91](index=91&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=26&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) The Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period - For the six months ended June 30, 2025, the Group did not undertake any material acquisitions or disposals of subsidiaries, associates, and joint ventures[92](index=92&type=chunk) [Employees and Remuneration Policy](index=26&type=section&id=Employees%20and%20Remuneration%20Policy) The Group maintains a stable workforce of 199 employees, primarily in China and Japan, with a competitive remuneration policy and no significant labor disputes - As of June 30, 2025, the Group had a total of **199** employees, mostly located in China, with some in Japan[93](index=93&type=chunk) - The remuneration policy is competitive, including salaries, discretionary bonuses, and benefit plans, along with various internal and external training opportunities[93](index=93&type=chunk) - The company maintains stable employee relations and has not experienced any strikes or other labor disputes that significantly impacted the Group's business activities[93](index=93&type=chunk) [Foreign Exchange Risk](index=26&type=section&id=Foreign%20Exchange%20Risk) The Group's primary foreign exchange risk arises from fluctuations in the US Dollar and Japanese Yen against the Renminbi, as most transactions are settled in RMB - The Group primarily operates in mainland China, with most transactions settled in Renminbi[94](index=94&type=chunk) - The foreign exchange risk borne by the Group primarily arises from fluctuations in the exchange rates of the US Dollar and Japanese Yen against the Renminbi[94](index=94&type=chunk) [Trade and Other Receivables](index=27&type=section&id=Trade%20and%20Other%20Receivables) Trade receivables increased due to expanded B2B business, leading to higher impairment provisions, while other receivables also rose due to extended rebate settlement cycles with key suppliers and risks associated with office lease termination - As of June 30, 2025, trade receivables were **RMB 191.3 million**, an increase of **RMB 22.1 million** from December 31, 2024, primarily due to the expanded B2B business on Tmall and JD[95](index=95&type=chunk) - Impairment provisions for trade receivables were **RMB 48.1 million**, an increase of **RMB 5.9 million** from December 31, 2024, mainly due to impairment provisions for Shanghai Xuyi[95](index=95&type=chunk) - The overall trade receivables turnover days remained at a healthy **41.9 days** (December 31, 2024: **38.1 days**)[95](index=95&type=chunk) - Related party receivables (Shanghai Xuyi) balance was **RMB 61.1 million**, accounting for **31.9%** of total trade receivables, with total expected credit loss provisions of **RMB 42.0 million** recognized[96](index=96&type=chunk) - Other receivables increased to **RMB 131.9 million**, up **RMB 21.1 million**, primarily due to extended rebate settlement cycles with major suppliers based on long-term strategic cooperation and mutual benefit principles[97](index=97&type=chunk) - Impairment provisions for other receivables were **RMB 4.9 million**, an increase of **RMB 1.0 million**, mainly due to risks in recovering office deposits from early termination of the Shanghai office lease[97](index=97&type=chunk) [Contingent Liabilities](index=27&type=section&id=Contingent%20Liabilities) The Group had no significant contingent liabilities for the six months ended June 30, 2025 - For the six months ended June 30, 2025, the Group had no significant contingent liabilities[98](index=98&type=chunk) [Events After the Reporting Period](index=27&type=section&id=Events%20After%20the%20Reporting%20Period) There have been no material events after the reporting period up to the date of this announcement - The Group had no material events after June 30, 2025, and up to the date of this announcement[99](index=99&type=chunk) [No Material Changes](index=28&type=section&id=No%20Material%20Changes) There have been no material changes in the company's business since the publication of its latest annual report - There have been no material changes in the company's business since the publication of its latest annual report for the year ended December 31, 2024[100](index=100&type=chunk) [Other Information](index=28&type=section&id=Other%20Information) This section provides additional information on the company's outlook, corporate governance practices, directors' securities transactions, interim dividend, audit committee, and the utilization of listing proceeds [Outlook](index=28&type=section&id=Outlook) In H2 2025, the Group plans to accelerate the incubation of its own brands in health food and skincare, expand into Southeast Asian and North American markets, and support refined operations with a digital platform to achieve long-term sustainable growth - Brand incubation: Accelerate the incubation of proprietary brands in health food, skincare, and other areas, co-creating brands with quality partners to build a diversified product matrix[102](index=102&type=chunk) - Overseas expansion: Prioritize expansion into Southeast Asian and North American markets through cross-border DTC, key pharmacy chains, and local KOL ecosystem linkages to enhance brand awareness and penetration[102](index=102&type=chunk) - Refined operations: Leverage a digital middle platform to establish a closed-loop data system across R&D, supply chain, and marketing, implementing refined product selection, flexible supply chain, and precise targeting to continuously optimize cost structure and user experience[102](index=102&type=chunk) [Corporate Governance Practices](index=29&type=section&id=Corporate%20Governance%20Practices) The company is committed to maintaining high standards of corporate governance, having adopted the Corporate Governance Code in Appendix C1 of the Listing Rules, with Mr. Wang Yong serving as both Chairman and CEO, a deviation from Code Provision C.2.1, which the Board believes provides strong and consistent leadership and sufficient checks and balances for the company's development - The company has adopted the Corporate Governance Code as set out in Appendix C1 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited as its governance code[103](index=103&type=chunk) - The roles of Chairman of the Board and Chief Executive Officer of the company are currently held by Mr. Wang Yong, which deviates from Code Provision C.2.1 of the Corporate Governance Code[103](index=103&type=chunk)[104](index=104&type=chunk) - The Board believes this structure provides strong and consistent leadership for the Group and facilitates the effective implementation of the Group's business strategies, with sufficient checks and balances within the Board[104](index=104&type=chunk)[105](index=105&type=chunk) [Standard Code for Securities Transactions by Directors](index=30&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules, and all directors have confirmed compliance with its standards during the reporting period - The company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules[106](index=106&type=chunk) - Following specific enquiries with all directors, each director has confirmed compliance with the required standards set out in the Standard Code for the six months ended June 30, 2025[106](index=106&type=chunk) [Interim Dividend](index=30&type=section&id=Interim%20Dividend) The Board resolved not to declare any interim dividend for the six months ended June 30, 2025 (H1 2024: **HKD 0.25**) - The Board resolved not to declare any interim dividend for the six months ended June 30, 2025 (H1 2024: **HKD 0.25**)[107](index=107&type=chunk) [Audit Committee](index=30&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors with Mr. Wu Jinhua as Chairman, is primarily responsible for reviewing financial information and overseeing financial reporting, risk management, and internal control procedures, and has reviewed the Group's unaudited interim results - The Audit Committee members include three independent non-executive directors: Mr. Wu Jinhua (Chairman), Mr. Wei Hang, and Ms. Xin Honghua[108](index=108&type=chunk) - The primary responsibilities of the Audit Committee are to review the company's financial information and oversee the company's financial reporting system, risk management, and internal control procedures[108](index=108&type=chunk) - The Audit Committee, together with the Board, has reviewed the Group's unaudited condensed consolidated interim results for the six months ended June 30, 2025[108](index=108&type=chunk) [Use of Proceeds from Listing](index=30&type=section&id=Use%20of%20Proceeds%20from%20Listing) Net proceeds from the listing, approximately **HKD 320 million**, have been utilized according to the prospectus and the revised plan announced on December 23, 2024, with **HKD 7 million** utilized as of June 30, 2025, and the remaining **HKD 43 million** expected to be fully used by December 31, 2027 - The total net proceeds from the listing, approximately **HKD 320 million**, have been utilized according to the plan disclosed in the prospectus and the announcement dated December 23, 2024[109](index=109&type=chunk)[110](index=110&type=chunk) Use and Application of Listing Proceeds (as of June 30, 2025) | Item | Revised Allocation (HKD million) | Unutilized as of Dec 31, 2024 (HKD million) | Utilized in H1 2025 (HKD million) | Unutilized as of June 30, 2025 (HKD million) | Expected Timeline | | :--- | :--- | :--- | :--- | :--- | :--- | | Investment in social media marketing and advertising, development of proprietary brands, enrichment of brand portfolio, and strengthening of supply chain management | 174 | 5 | 5 | 174 | Not applicable | | Enrichment of health product brands and product categories | 50 | 0 | 0 | 50 | Not applicable | | Strengthening technology systems and data analytics capabilities | 22 | 3 | 2 | 21 | On or before December 31, 2027 | | Seeking strategic investments in technology companies and O2O service providers | 0 | 0 | 0 | 0 | Not applicable | | Working capital and general corporate purposes | 32 | 0 | 0 | 32 | Not applicable | | Acquisitions and strategic investments/collaborations with brands in health and beauty sectors | 42 | 42 | 0 | 0 | On or before December 31, 2027 | | **Total** | **320** | **50** | **7** | **277** | | - The remaining net proceeds are expected to be fully utilized on or before December 31, 2027[110](index=110&type=chunk) [Acknowledgement](index=32&type=section&id=Acknowledgement) The Board expresses its sincere gratitude to the company's shareholders, customers, management, and employees for their strong support of the Group - The Board extends its heartfelt thanks to the company's shareholders, customers, management, and employees for their strong support of the Group[112](index=112&type=chunk) [Board of Directors](index=32&type=section&id=Board%20of%20Directors) The Board of Directors comprises executive, non-executive, and independent non-executive directors - Executive Directors: Mr. Wang Yong, Mr. Shen Yu, and Ms. Chen Weiwei[113](index=113&type=chunk) - Non-Executive Director: Mr. Nakayama Kuniaki[113](index=113&type=chunk) - Independent Non-Executive Directors: Mr. Wu Jinhua, Mr. Wei Hang, and Ms. Xin Honghua[113](index=113&type=chunk)