股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年9月30日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 智欣集團控股有限公司 呈交日期: 2025年10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) | 02187 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 3,000,000,000 | HKD | | 0.01 | HKD | | 30,000,000 | | 增加 / 減少 (-) | | | 0 | | | | HKD | | | | 本月底結存 | | | 3,000,000,000 | HKD | | 0.01 | HKD | | 30,000,000 | 第 1 頁 共 ...

[Company Information](index=3&type=section&id=Company%20Information) The company is incorporated in the Cayman Islands, headquartered in Xiamen, Fujian Province, China, with a principal place of business in Hong Kong - Zixin Group Holdings Limited is incorporated in the Cayman Islands, stock code 2187, headquartered in Xiamen, Fujian Province, China, with a principal place of business in Hong Kong[6](index=6&type=chunk)[7](index=7&type=chunk) - The Board of Directors comprises six executive directors, including Mr. Ye Zhijie (Chairman), and three independent non-executive directors, with audit, nomination, remuneration, and strategy committees established[6](index=6&type=chunk) [Financial Highlights](index=5&type=section&id=Financial%20Highlights) The group's revenue increased by 6.4% year-on-year, but gross profit significantly declined by 82.6%, resulting in a net loss for the period Financial Highlights for the Six Months Ended June 30 | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change % | | :--- | :--- | :--- | :--- | | Revenue | 259,673 | 244,079 | 6.4% | | Gross Profit | 7,905 | 45,517 | (82.6%) | | (Loss) / Profit for the Period | (49,061) | 1,172 | (4,286.1%) | - Revenue increased by **6.4% year-on-year** to **RMB 259.7 million**, driven by ready-mixed concrete (14.0% growth) and iron ore tailings recycling and eco-friendly bricks (6.8% growth) businesses[9](index=9&type=chunk) - Gross profit significantly decreased by **82.6%** to **RMB 7.9 million**, with the period shifting from profit to a **loss of RMB 49.1 million**[10](index=10&type=chunk)[11](index=11&type=chunk) [Chairman's Report](index=5&type=section&id=Chairman%27s%20Report) The group, a concrete building materials manufacturer in Xiamen, saw revenue growth driven by iron ore tailings recycling, but overall gross profit and net profit declined - The Group is a concrete building materials manufacturer and supplier in Xiamen, Fujian Province, China, also engaged in comprehensive utilization of iron ore tailings and eco-friendly brick production in Changjiang, Hainan Province[12](index=12&type=chunk) - For the six months ended June 30, 2025, revenue grew by **6.4%** to **RMB 259.7 million**, primarily due to increased revenue from iron ore tailings recycling and ready-mixed concrete, partially offset by a decrease in precast concrete components revenue[12](index=12&type=chunk) - Overall gross profit decreased by **82.6%** to **RMB 7.9 million**, mainly due to a gross loss of approximately **RMB 19.3 million** from the ready-mixed concrete business, resulting in a net loss of approximately **RMB 49.1 million** for the period[13](index=13&type=chunk) - Looking ahead, market pressure on ready-mixed concrete and precast concrete components is expected to persist, while the iron ore tailings recycling and eco-friendly bricks business will continue to generate strong revenue[13](index=13&type=chunk) [Management Discussion and Analysis](index=7&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a detailed analysis of the group's financial performance, liquidity, and risk factors for the period [Business Review](index=7&type=section&id=Business%20Review) The group's total revenue increased by 6.4% year-on-year, driven by ready-mixed concrete and iron ore tailings recycling, despite a significant decline in precast concrete components Revenue Changes by Business Segment | Business Segment | 2025 (RMB thousands) | 2024 (RMB thousands) | Change % | | :--- | :--- | :--- | :--- | | Ready-mixed Concrete | 148,200 | 130,000 | 14.0% | | Precast Concrete Components | 870 | 10,600 | (91.8%) | | Iron Ore Tailings Recycling and Eco-friendly Bricks | 110,600 | 103,500 | 6.8% | | **Total Revenue** | **259,700** | **244,100** | **6.4%** | - Ready-mixed concrete revenue moderately increased, but the segment remains in a loss-making position with narrowing profit margins due to intense competition in the Xiamen market[20](index=20&type=chunk) - Precast concrete components revenue significantly decreased by **91.8%**, resulting in a segment loss, primarily due to market price competition[19](index=19&type=chunk)[20](index=20&type=chunk) - Iron ore tailings recycling and eco-friendly bricks revenue increased by **6.8%**, mainly due to higher selling prices[20](index=20&type=chunk) [Cost of Sales](index=7&type=section&id=Cost%20of%20Sales) Cost of sales increased by 26.8% to RMB 251.8 million, mainly due to higher revenue from iron ore tailings recycling and increased raw material costs for ready-mixed concrete - Cost of sales increased by approximately **RMB 53.2 million** or **26.8%** to **RMB 251.8 million**[21](index=21&type=chunk) - Key reasons include increased revenue from iron ore tailings recycling and eco-friendly bricks, and rising raw material costs for ready-mixed concrete despite falling selling prices due to price competition[21](index=21&type=chunk) - Depreciation of precast concrete components production lines was reclassified to administrative expenses due to temporary suspension of production, partially offsetting the increase in cost of sales[21](index=21&type=chunk) [Gross Profit and Gross Margin](index=7&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Overall gross profit significantly decreased by 82.6% to RMB 7.9 million, primarily due to a gross loss of RMB 19.3 million in the ready-mixed concrete business - Overall gross profit decreased by approximately **RMB 37.6 million** or **82.6%** from RMB 45.5 million to **RMB 7.9 million**[22](index=22&type=chunk) - The decline in gross profit is primarily attributable to a gross loss of approximately **RMB 19.3 million** from the ready-mixed concrete business (compared to a gross profit of approximately RMB 12.9 million in the same period last year)[23](index=23&type=chunk) [Other Income](index=8&type=section&id=Other%20Income) Other income increased by 83.4% to RMB 5.2 million, mainly due to non-recurring government grants and compensation for delayed trade receivables settlement - Other income increased by approximately **83.4%** to approximately **RMB 5.2 million**[24](index=24&type=chunk) - Primarily due to non-recurring government grants and awards received, and compensation for delayed settlement of trade receivables[24](index=24&type=chunk) [Selling Expenses](index=8&type=section&id=Selling%20Expenses) Selling expenses decreased by 38.1% to RMB 6.5 million, mainly due to reduced sales volume of precast concrete components - Selling expenses decreased by approximately **38.1%** to approximately **RMB 6.5 million**[25](index=25&type=chunk) - Primarily due to a decrease in sales volume of precast concrete components[25](index=25&type=chunk) [Administrative Expenses](index=8&type=section&id=Administrative%20Expenses) Administrative expenses increased by 46.5% to RMB 42.6 million, mainly due to the reclassification of depreciation for temporarily suspended precast concrete component production lines - Administrative expenses increased by approximately **46.5%** to approximately **RMB 42.6 million**[26](index=26&type=chunk) - Primarily due to the reclassification of depreciation for precast concrete component production lines to administrative costs following temporary suspension of production[26](index=26&type=chunk) [Net Finance Costs](index=8&type=section&id=Net%20Finance%20Costs) Net finance costs decreased by 13.6% to RMB 8.7 million, primarily due to a reduction in interest on bank borrowings - Net finance costs decreased by approximately **13.6%** to approximately **RMB 8.7 million**[27](index=27&type=chunk) - Primarily due to a decrease in interest on bank borrowings[27](index=27&type=chunk) [Income Tax (Expense) / Credit](index=8&type=section&id=Income%20Tax%20%28Expense%29%20%2F%20Credit) Income tax shifted from a credit to an expense of RMB 1.2 million, mainly due to losses in the ready-mixed concrete and precast concrete components businesses - Income tax expense for the period was approximately **RMB 1.2 million** (compared to a credit of approximately RMB 1.3 million in the same period last year)[28](index=28&type=chunk) - The low income tax expense is primarily due to losses in the ready-mixed concrete and precast concrete components businesses[28](index=28&type=chunk) [(Loss) / Profit for the Period](index=8&type=section&id=%28Loss%29%20%2F%20Profit%20for%20the%20Period) The group recorded a loss of approximately RMB 49.1 million for the period, compared to a profit of RMB 1.2 million in the prior year - The loss for the period was approximately **RMB 49.1 million** (compared to a profit of RMB 1.2 million in the same period last year)[29](index=29&type=chunk) [Liquidity and Financial Resources](index=8&type=section&id=Liquidity%20and%20Financial%20Resources) The group funds operations through cash from operating activities and borrowings, with net current liabilities of RMB 37.5 million and a gearing ratio of 54% as of June 30, 2025 - The Group primarily funds its operations through cash generated from operating activities and borrowings[30](index=30&type=chunk) Overview of Liquidity and Financial Resources | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Current Liabilities | 37,500 | 72,500 | | Cash and Cash Equivalents | 15,700 | 19,000 | | Current Borrowings | 121,100 | 227,700 | | Non-current Borrowings | 260,200 | 132,700 | | Gearing Ratio | 54% | 48% | [Currency Risk](index=9&type=section&id=Currency%20Risk) Operating primarily in China with RMB as the functional currency, the group does not anticipate significant currency risk and has no foreign currency hedging policy - Most of the Group's subsidiaries operate in China, with RMB as their functional currency[32](index=32&type=chunk) - No significant currency risk is expected to materially impact operating results, and there is currently no foreign currency hedging policy in place[32](index=32&type=chunk) [Capital Commitments](index=9&type=section&id=Capital%20Commitments) As of June 30, 2025, the group's capital commitments amounted to approximately RMB 451.8 million, an increase from the end of 2024 Capital Commitments | Date | Amount (RMB thousands) | | :--- | :--- | | June 30, 2025 | 451,800 | | December 31, 2024 | 404,300 | [Pledged Assets](index=9&type=section&id=Pledged%20Assets) Details regarding the pledging of the group's assets are provided in Note 20 to the condensed consolidated interim financial statements - Details regarding the pledging of the Group's assets are set out in Note 20 to the condensed consolidated interim financial statements[34](index=34&type=chunk) [Contingent Liabilities](index=9&type=section&id=Contingent%20Liabilities) The group had no contingent liabilities as of June 30, 2025, and December 31, 2024 - As of June 30, 2025, and December 31, 2024, the Group had no contingent liabilities[35](index=35&type=chunk) [Capital Structure](index=9&type=section&id=Capital%20Structure) The group's capital structure, consisting of equity attributable to owners, has remained unchanged since listing and is regularly reviewed by the Board - The Group's capital structure has remained unchanged since its listing, comprising equity attributable to owners of the Company[36](index=36&type=chunk) - The Board regularly reviews the Group's capital structure, considering the cost of capital and associated risks[36](index=36&type=chunk) [Significant Acquisitions and Disposals](index=9&type=section&id=Significant%20Acquisitions%20and%20Disposals) The group did not undertake any significant acquisitions or disposals related to subsidiaries, associates, or joint ventures during the period - During the period, the Group did not undertake any significant acquisitions or disposals related to subsidiaries, associates, or joint ventures[37](index=37&type=chunk) [Significant Investments](index=9&type=section&id=Significant%20Investments) The group did not have any significant investments during the period - During the period, the Group did not have any significant investments[38](index=38&type=chunk) [Employees and Remuneration Policy](index=10&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the group had 376 employees, with remuneration determined by qualifications, responsibilities, contributions, and experience, and some factory workers outsourced for efficiency - As of June 30, 2025, the Group had **376 employees** (June 30, 2024: 462 employees)[39](index=39&type=chunk) - Employee remuneration is determined with reference to factors such as qualifications, responsibilities, contributions, and experience[39](index=39&type=chunk) - The Group outsources some precast concrete component production line workers to certain labor service companies to enhance human resource efficiency and flexibility[39](index=39&type=chunk) [Use of Proceeds](index=10&type=section&id=Use%20of%20Proceeds) Net proceeds from the share offer were approximately HKD 238.7 million, with HKD 5.4 million utilized for expanding precast concrete component production capacity as of June 30, 2025 - Net proceeds from the share offer were approximately **HKD 238.7 million**[40](index=40&type=chunk) Overview of Use of Net Proceeds (HKD millions) | Use | Updated Proposed Use | Utilized as of Dec 31, 2024 | Utilized from Jan 1 to Jun 30, 2025 | Unutilized as of Jun 30, 2025 | Expected Timeline | | :--- | :--- | :--- | :--- | :--- | :--- | | Expand precast concrete component production capacity | 24.5 | 5.4 | — | 5.4 | Before Dec 2025 | | Enhance IT systems | 1.2 | — | — | — | Not applicable | | Improve environmental protection systems | 1.2 | — | — | — | Not applicable | | Purchase mixer trucks and concrete pump trucks | 2.0 | — | — | — | Not applicable | | General working capital | 105.3 | — | — | — | Not applicable | | Repay borrowings | 104.5 | — | — | — | Not applicable | | **Total** | **238.7** | **5.4** | **—** | **5.4** | | [Prospects](index=10&type=section&id=Prospects) Increased competition in Xiamen's ready-mixed and precast concrete markets pressures profits, while Hainan's iron ore tailings utilization business is expected to remain a strong revenue source - Increased competition in Xiamen's ready-mixed concrete and precast concrete component markets significantly pressures and harms the Group's profits[41](index=41&type=chunk) - The comprehensive utilization of iron ore tailings in Hainan continues to be a primary revenue source for the Group, expected to remain strong due to ample supply and robust demand in neighboring areas[41](index=41&type=chunk) [Condensed Consolidated Interim Statement of Comprehensive Income](index=11&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Comprehensive%20Income) This statement presents the group's financial performance, showing a shift from profit to a significant loss for the six months ended June 30, 2025 Condensed Consolidated Interim Statement of Comprehensive Income (For the Six Months Ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 259,673 | 244,079 | | Cost of Sales | (251,768) | (198,562) | | Gross Profit | 7,905 | 45,517 | | Other Income | 5,203 | 2,837 | | Other Net Losses | (1,601) | (512) | | Selling Expenses | (6,483) | (10,470) | | Administrative Expenses | (42,617) | (29,099) | | Impairment Loss on Financial Assets (Increase) / Reversal | (1,594) | 1,618 | | Operating Profit | (39,187) | 9,891 | | Net Finance Costs | (8,669) | (10,032) | | Loss Before Income Tax | (47,856) | (141) | | Income Tax (Expense) / Credit | (1,205) | 1,313 | | (Loss) / Profit and Total Comprehensive (Loss) / Income for the Period Attributable to Owners of the Company | (49,061) | 1,172 | | Basic and Diluted (Loss) / Earnings Per Share (RMB) | (0.066) | 0.002 | [Condensed Consolidated Interim Statement of Financial Position](index=11&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Financial%20Position) This statement provides a snapshot of the group's assets, liabilities, and equity as of June 30, 2025, showing a slight decrease in total assets and equity, with an increase in total liabilities Condensed Consolidated Interim Statement of Financial Position (As at June 30, 2025) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **Assets** | | | | Total Non-current Assets | 646,184 | 601,421 | | Total Current Assets | 483,663 | 531,233 | | **Total Assets** | **1,129,847** | **1,132,654** | | **Equity** | | | | Total Equity | 328,888 | 377,949 | | **Liabilities** | | | | Total Non-current Liabilities | 279,768 | 150,989 | | Total Current Liabilities | 521,191 | 603,716 | | **Total Liabilities** | **800,959** | **754,705** | | **Total Equity and Liabilities** | **1,129,847** | **1,132,654** | - As of June 30, 2025, total assets slightly decreased to **RMB 1,129.8 million**, with non-current assets increasing and current assets decreasing[44](index=44&type=chunk) - Total equity decreased to **RMB 328.9 million**, and total liabilities increased to **RMB 801.0 million**, primarily due to an increase in non-current borrowings[44](index=44&type=chunk)[46](index=46&type=chunk) [Condensed Consolidated Interim Statement of Changes in Equity](index=13&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Changes%20in%20Equity) This statement details changes in the group's equity for the six months ended June 30, 2025, reflecting a decrease primarily due to the loss incurred during the period Condensed Consolidated Interim Statement of Changes in Equity (For the Six Months Ended June 30, 2025) | Indicator | Share Capital (RMB thousands) | Reserves (RMB thousands) | Retained Earnings (RMB thousands) | Total (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | As at January 1, 2025 | 6,358 | 364,659 | 6,932 | 377,949 | | Loss for the period | — | — | (49,061) | (49,061) | | As at June 30, 2025 | 6,358 | 364,659 | (42,129) | 328,888 | | As at January 1, 2024 | 6,358 | 364,659 | 82,131 | 453,148 | | Profit for the period | — | — | 1,172 | 1,172 | | As at June 30, 2024 | 6,358 | 364,659 | 83,303 | 454,320 | - As of June 30, 2025, total equity attributable to owners of the Company was **RMB 328.9 million**, a decrease from the beginning of the period, mainly due to a **loss of RMB 49.1 million** incurred, resulting in retained earnings turning into accumulated losses[47](index=47&type=chunk) [Condensed Consolidated Interim Statement of Cash Flows](index=14&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Cash%20Flows) This statement summarizes the group's cash flows from operating, investing, and financing activities, showing a significant decrease in operating cash flow and an increase in cash used for investing activities Condensed Consolidated Interim Statement of Cash Flows (For the Six Months Ended June 30, 2025) | Activity Type | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 8,262 | 53,998 | | Net Cash Used in Investing Activities | (70,506) | (28,874) | | Net Cash Generated from / (Used in) Financing Activities | 58,933 | (24,780) | | Net (Decrease) / Increase in Cash and Cash Equivalents | (3,311) | 344 | | Cash and Cash Equivalents at End of Period | 15,705 | 26,212 | - Net cash generated from operating activities significantly decreased to **RMB 8.3 million**, while net cash used in investing activities increased to **RMB 70.5 million**, primarily for the purchase of property, plant and equipment[49](index=49&type=chunk) - Financing activities shifted from cash used to cash generated of **RMB 58.9 million**, mainly due to increased proceeds from bank borrowings[49](index=49&type=chunk) - Cash and cash equivalents at the end of the period decreased to **RMB 15.7 million**[49](index=49&type=chunk) [Notes to the Condensed Consolidated Interim Financial Statements](index=15&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) This section provides detailed explanatory notes to the condensed consolidated interim financial statements, covering general information, accounting policies, risk management, and specific financial items [General Information of the Group](index=16&type=section&id=General%20Information%20of%20the%20Group) The group, incorporated in the Cayman Islands, primarily manufactures and sells ready-mixed and precast concrete components in China, and has expanded into eco-friendly bricks and iron ore tailings recycling since 2022 - The Company was incorporated in the Cayman Islands on November 14, 2018, as an investment holding company[50](index=50&type=chunk) - The Group is principally engaged in the manufacture and sale of ready-mixed concrete and precast concrete components in China, and since 2022, in the manufacture and sale of eco-friendly bricks and iron ore tailings recycling products[50](index=50&type=chunk) - The Company's shares have been listed on the Main Board of The Stock Exchange of Hong Kong Limited since March 26, 2021[51](index=51&type=chunk) [Basis of Preparation](index=16&type=section&id=Basis%20of%20Preparation) The condensed consolidated interim financial statements are prepared in accordance with HKAS 34 "Interim Financial Reporting" and should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2024 - The condensed consolidated interim financial statements have been prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[55](index=55&type=chunk) - These statements should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2024[55](index=55&type=chunk) [Significant Accounting Policies](index=17&type=section&id=Significant%20Accounting%20Policies) The significant accounting policies applied in these interim financial statements are consistent with the prior year, with the adoption of new and revised standards, including HKAS 21 (Amendment) "Lack of Exchangeability" - The significant accounting policies applied in the preparation of the condensed consolidated interim financial statements are consistent with those applied in the annual consolidated financial statements for the year ended December 31, 2024[56](index=56&type=chunk) - The Group adopted HKAS 21 (Amendment) "Lack of Exchangeability", effective from January 1, 2025[57](index=57&type=chunk)[58](index=58&type=chunk) - Several new and revised standards (e.g., HKFRS 9, 18, 19) are not yet effective, and the Group is assessing their full impact[59](index=59&type=chunk) [Estimates](index=18&type=section&id=Estimates) Preparing interim financial statements requires management judgments, estimates, and assumptions that affect reported amounts of assets, liabilities, income, and expenses, with actual results potentially differing from estimates - The preparation of interim financial statements requires management to make judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, and income and expenses[60](index=60&type=chunk) - The significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those applied to the annual consolidated financial statements for the year ended December 31, 2024[60](index=60&type=chunk) [Financial Risk Management](index=19&type=section&id=Financial%20Risk%20Management) The group faces market, credit, and liquidity risks, with risk management plans aimed at minimizing adverse effects, and no changes in policies since the last year-end [Financial Risk Factors](index=19&type=section&id=Financial%20Risk%20Factors) The group's activities are exposed to market (foreign exchange and interest rate), credit, and liquidity risks, with an overall risk management plan focused on mitigating adverse impacts, and no derivative financial instruments used for hedging during the period - The Group's activities expose it to various financial risks: market risk (including foreign exchange risk and interest rate risk), credit risk, and liquidity risk[61](index=61&type=chunk) - The Group's overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Group's financial performance[61](index=61&type=chunk) - There have been no changes in the Group's risk management policies since the end of the last annual period[62](index=62&type=chunk) [Credit Risk](index=19&type=section&id=Credit%20Risk) The group's credit risk primarily arises from cash and bank balances, trade receivables, and other receivables, with expected credit losses for trade receivables measured using a simplified approach based on aging and customer credit quality - The Group is exposed to credit risk in relation to its cash and bank balances, restricted bank balances, trade receivables, and other receivables[63](index=63&type=chunk) - The Group applies the simplified approach under HKFRS 9 to measure expected credit losses, which requires the use of the lifetime expected loss allowance for all trade receivables[66](index=66&type=chunk) Expected Loss Allowance for Trade Receivables (RMB thousands) | Aging | June 30, 2025 Gross Carrying Amount | June 30, 2025 Total Loss Allowance | December 31, 2024 Gross Carrying Amount | December 31, 2024 Total Loss Allowance | | :--- | :--- | :--- | :--- | :--- | | Within one year | 260,933 | 4,574 | 260,628 | 2,592 | | One to two years | 50,038 | 2,193 | 69,641 | 3,089 | | Two to three years | 58,410 | 8,618 | 59,356 | 12,257 | | Over three years | 39,240 | 17,500 | 32,649 | 13,353 | | **Total** | **408,621** | **32,885** | **422,274** | **31,291** | [Liquidity Risk](index=22&type=section&id=Liquidity%20Risk) The group manages liquidity risk through an analysis of contractual maturities of non-derivative financial liabilities, showing various maturities for borrowings, interest payables, trade payables, and other payables Maturity Analysis of Non-Derivative Financial Liabilities (RMB thousands) | Liability Type | Within One Year (2025) | One to Two Years (2025) | Two to Five Years (2025) | Over Five Years (2025) | Total (2025) | | :--- | :--- | :--- | :--- | :--- | :--- | | Borrowings (excluding factoring borrowings) | 71,200 | 53,800 | 44,900 | 161,510 | 331,410 | | Interest Payable | 12,818 | 637 | 3,923 | 12,408 | 29,786 | | Trade Payables | 322,425 | — | — | — | 322,425 | | Other Payables and Accrued Charges | 63,545 | — | — | — | 63,545 | | **Total** | **469,988** | **54,437** | **48,823** | **173,918** | **747,166** | [Fair Value Estimation of Financial Assets and Liabilities Measured at Amortized Cost](index=22&type=section&id=Fair%20Value%20Estimation%20of%20Financial%20Assets%20and%20Liabilities%20Measured%20at%20Amortized%20Cost) The carrying amounts of the group's current financial assets and liabilities approximate their fair values at the reporting date due to their short-term nature - The Group's current financial assets (including cash and bank balances and trade and other receivables) and current financial liabilities (including trade and other payables, bank borrowings, and lease liabilities) are short-term in nature[71](index=71&type=chunk) - Their carrying amounts approximate their fair values at the reporting date[71](index=71&type=chunk) [Segment Information](index=23&type=section&id=Segment%20Information) The group operates in three segments: ready-mixed concrete, precast concrete components, and recycled iron ore tailings and bricks, with the latter performing well while the former two recorded losses [Segment Information of the Group](index=24&type=section&id=Segment%20Information%20of%20the%20Group) For the six months ended June 30, 2025, the recycled iron ore tailings and bricks segment reported a profit of RMB 11.9 million, while ready-mixed concrete and precast concrete components segments recorded losses of RMB 39.1 million and RMB 10.4 million, respectively Segment Results (For the Six Months Ended June 30, 2025) | Segment | Revenue (RMB thousands) | Gross Profit (RMB thousands) | Segment Results (RMB thousands) | | :--- | :--- | :--- | :--- | | Ready-mixed Concrete | 148,220 | (19,268) | (39,124) | | Precast Concrete Components | 870 | 330 | (10,371) | | Recycled Iron Ore Tailings and Bricks | 110,583 | 26,843 | 11,933 | | **Total** | **259,673** | **7,905** | **(37,562)** | - Additions to non-current assets were primarily concentrated in the recycled iron ore tailings and bricks segment, amounting to **RMB 63.5 million**[75](index=75&type=chunk) - Total segment assets amounted to **RMB 1,053.8 million**, with the recycled iron ore tailings and bricks segment accounting for the largest proportion[75](index=75&type=chunk) [Contract Liabilities](index=26&type=section&id=Contract%20Liabilities) As of June 30, 2025, the group's total contract liabilities were RMB 7.2 million, mainly from ready-mixed concrete, with RMB 4.3 million revenue recognized from opening contract liabilities during the period Contract Liabilities (RMB thousands) | Business Segment | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Recycled Iron Ore Tailings and Bricks | 469 | 3,732 | | Precast Concrete Components | 100 | — | | Ready-mixed Concrete | 6,587 | 1,321 | | **Total** | **7,156** | **5,053** | - Contract liabilities relate to non-refundable customer advances and fluctuate due to varying project durations[77](index=77&type=chunk) - Revenue recognized from opening contract liabilities during the period was **RMB 4.3 million** (2024: RMB 3.0 million)[79](index=79&type=chunk) [Expenses by Nature](index=27&type=section&id=Expenses%20by%20Nature) Total cost of sales, selling expenses, and administrative expenses amounted to RMB 300.9 million, primarily comprising raw materials and consumables used, employee benefit expenses, and outsourcing service fees Expenses by Nature (For the Six Months Ended June 30) | Expense Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Raw materials and consumables used | 195,381 | 126,214 | | Employee benefit expenses | 28,220 | 27,645 | | Outsourcing service fees | 16,949 | 18,101 | | Depreciation of property, plant and equipment | 15,375 | 15,637 | | Transportation expenses | 16,758 | 17,232 | | **Total** | **300,868** | **238,131** | - Raw materials and consumables used represent the largest expense item, significantly increasing year-on-year during the period[80](index=80&type=chunk) [Income Tax Expense / (Credit)](index=27&type=section&id=Income%20Tax%20Expense%20%2F%20%28Credit%29) Income tax expense for the period was RMB 1.2 million, mainly comprising China income tax, with Chinese subsidiaries subject to a 25% corporate income tax rate, and some enjoying a preferential rate of 15% Income Tax Expense / (Credit) (For the Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current income tax — China income tax | 1,274 | (1,868) | | Deferred income tax | (69) | 555 | | **Income Tax Expense / (Credit)** | **1,205** | **(1,313)** | - The Company is incorporated in the Cayman Islands and is not subject to Cayman Islands taxation; British Virgin Islands subsidiaries are also exempt from taxation; Hong Kong profits tax is provided at 16.5%, but there was no assessable profit during the period[82](index=82&type=chunk)[83](index=83&type=chunk)[84](index=84&type=chunk) - Chinese subsidiaries are subject to a corporate income tax rate of 25%, except for Xiamen Zhixin Construction Technology Co., Ltd. and Zhixin Environmental Technology (Changjiang) Co., Ltd., which enjoy a preferential tax rate of 15%[84](index=84&type=chunk) [Basic and Diluted (Loss) / Earnings Per Share](index=28&type=section&id=Basic%20and%20Diluted%20%28Loss%29%20%2F%20Earnings%20Per%20Share) Basic loss per share was RMB 0.066, compared to basic earnings per share of RMB 0.002 in the prior year, with diluted loss per share being the same due to no potential dilutive ordinary shares Basic (Loss) / Earnings Per Share (For the Six Months Ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | (Loss) / Profit attributable to owners of the Company (RMB thousands) | (49,061) | 1,172 | | Weighted average number of ordinary shares in issue | 748,000,000 | 748,000,000 | | Basic (Loss) / Earnings Per Share (RMB) | (0.066) | 0.002 | - As there were no potential dilutive ordinary shares outstanding as of June 30, 2025, the diluted earnings per share presented are the same as the basic earnings per share[87](index=87&type=chunk) [Dividends](index=29&type=section&id=Dividends) No dividends were paid, declared, or proposed by the company for the six months ended June 30, 2025 - For the six months ended June 30, 2025, no dividends were paid, declared, or proposed (2024: Nil)[88](index=88&type=chunk) [Property, Plant and Equipment, Right-of-Use Assets, Investment Properties and Intangible Assets](index=29&type=section&id=Property%2C%20Plant%20and%20Equipment%2C%20Right-of-Use%20Assets%2C%20Investment%20Properties%20and%20Intangible%20Assets) As of June 30, 2025, the group's total property, plant and equipment, right-of-use assets, investment properties, and intangible assets amounted to RMB 624.9 million, with additions of RMB 60.8 million to property, plant and equipment and total depreciation and amortization of RMB 17.6 million during the period Movements in Non-Current Assets (RMB thousands) | Asset Category | January 1, 2025 | Additions | Depreciation / Amortization | Disposals | June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | Property, Plant and Equipment | 412,302 | 60,758 | (15,375) | (1,432) | 456,253 | | Right-of-Use Assets | 100,367 | — | (1,695) | — | 98,672 | | Investment Properties | 31,085 | — | (557) | — | 30,528 | | Intangible Assets | 39,403 | 19 | (17) | — | 39,405 | | **Total** | **583,157** | **60,777** | **(17,644)** | **(1,432)** | **624,858** | - The Group has pledged certain assets to secure borrowings, details of which are set out in Note 20(a)[89](index=89&type=chunk) [Inventories](index=30&type=section&id=Inventories) As of June 30, 2025, the group's total inventories amounted to RMB 18.5 million, comprising raw materials and finished goods, with an impairment allowance of RMB 1.4 million Composition of Inventories (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Raw materials | 13,047 | 12,702 | | Finished goods | 6,884 | 7,892 | | Less: Impairment allowance for inventories | (1,410) | (1,601) | | **Total** | **18,521** | **18,993** | - The closing balance of inventory impairment allowance was **RMB 1.4 million**, with zero increase in allowance recognized in profit or loss during the period, and **RMB 191 thousand** of allowance written off[90](index=90&type=chunk) [Trade Receivables](index=30&type=section&id=Trade%20Receivables) As of June 30, 2025, the group's total trade receivables were RMB 413.6 million, with an impairment allowance of RMB 32.9 million, and RMB 49.9 million subject to factoring arrangements Overview of Trade Receivables (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current trade receivables | 434,748 | 479,913 | | Less: Impairment allowance | (30,966) | (28,696) | | Non-current retention receivables | 11,756 | 16,405 | | Less: Impairment allowance | (1,919) | (2,595) | | **Total** | **413,619** | **465,027** | - The carrying amount of trade receivables includes receivables subject to factoring arrangements of **RMB 49.9 million** (December 31, 2024: RMB 38.1 million)[92](index=92&type=chunk) Aging Analysis of Trade Receivables (RMB thousands) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 1 year | 261,330 | 261,204 | | 1 to 2 years | 51,130 | 74,880 | | 2 to 3 years | 71,449 | 99,729 | | Over 3 years | 62,595 | 60,505 | | **Total** | **446,504** | **496,318** | [Prepayments, Deposits and Other Receivables](index=31&type=section&id=Prepayments%2C%20Deposits%20and%20Other%20Receivables) As of June 30, 2025, total prepayments, deposits, and other receivables amounted to RMB 45.7 million, primarily comprising prepayments for raw materials and operating expenses, recoverable deductible VAT, and refundable deposits Composition of Prepayments, Deposits and Other Receivables (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Prepayments for raw materials and operating expenses | 15,100 | 12,796 | | Recoverable deductible VAT | 7,430 | 6,973 | | Rental receivables | 4,089 | 4,840 | | Refundable deposits | 10,110 | 9,285 | | Other receivables | 8,926 | 8,093 | | **Total** | **45,655** | **41,987** | - Due to their short-term nature, the carrying amounts of prepayments, deposits, and other receivables approximate their fair values at the reporting date[94](index=94&type=chunk) [Cash and Bank Balances](index=32&type=section&id=Cash%20and%20Bank%20Balances) As of June 30, 2025, the group's cash and bank balances decreased to RMB 15.7 million, with restricted bank balances representing pledged bank deposits Cash and Bank Balances (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash on hand and at bank | 15,705 | 19,036 | - Restricted bank balances represent bank deposits pledged for the issuance of bills payable[95](index=95&type=chunk) [Share Capital](index=32&type=section&id=Share%20Capital) As of June 30, 2025, the company's authorized share capital was 3,000,000,000 shares, with 748,000,000 shares issued, totaling RMB 6.4 million, remaining unchanged since January 1, 2025 Overview of Share Capital | Item | Number of Ordinary Shares | Share Capital (RMB thousands) | | :--- | :--- | :--- | | Authorized Share Capital (June 30, 2025) | 3,000,000,000 | 25,500 | | Issued Share Capital (June 30, 2025) | 748,000,000 | 6,358 | - Share capital remained unchanged as of January 1, 2025, and June 30, 2025[96](index=96&type=chunk) [Reserves](index=32&type=section&id=Reserves) As of June 30, 2025, the group's total reserves amounted to RMB 364.7 million, including share premium, capital reserve, and statutory reserve, remaining unchanged since January 1, 2025 Composition of Reserves (RMB thousands) | Item | Share Premium | Capital Reserve | Statutory Reserve | Total | | :--- | :--- | :--- | :--- | :--- | | From January 1, 2025 to June 30, 2025 | 220,966 | 127,135 | 16,558 | 364,659 | - Total reserves remained unchanged from January 1, 2025, to June 30, 2025[96](index=96&type=chunk) [Trade Payables](index=33&type=section&id=Trade%20Payables) As of June 30, 2025, the group's total trade payables were RMB 322.4 million, primarily due within one year, with carrying amounts approximating fair values Trade Payables (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables — Third parties | 322,425 | 299,173 | Aging Analysis of Trade Payables (RMB thousands) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within one year | 266,976 | 246,851 | | One to two years | 15,555 | 50,035 | | Over two years | 39,894 | 2,287 | | **Total** | **322,425** | **299,173** | [Other Payables and Accrued Charges](index=33&type=section&id=Other%20Payables%20and%20Accrued%20Charges) As of June 30, 2025, total other payables and accrued charges amounted to RMB 70.4 million, mainly comprising payables for property, plant and equipment purchases and amounts due to related parties Composition of Other Payables and Accrued Charges (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Payables for property, plant and equipment purchases | 31,972 | 31,079 | | Amounts due to related parties | 16,605 | 7,919 | | Accrued operating expenses | 9,691 | 10,432 | | Employee benefit payables | 2,903 | 7,138 | | Other tax payables | 3,436 | 6,336 | | Others | 5,755 | 7,060 | | **Total** | **70,362** | **69,964** | - Due to their short-term nature, the carrying amounts of other payables and accrued charges approximate their fair values at the reporting date[98](index=98&type=chunk) [Borrowings](index=34&type=section&id=Borrowings) As of June 30, 2025, the group's total borrowings were RMB 381.3 million, with a significant increase in non-current borrowings, primarily secured bank and factoring borrowings, collateralized by various assets and guarantees [Bank Borrowings](index=34&type=section&id=Bank%20Borrowings) The group's total bank borrowings of RMB 381.3 million include secured bank and factoring borrowings, collateralized by assets such as property, plant and equipment, and guaranteed by the company and individuals Overview of Borrowings (RMB thousands) | Borrowing Type | June 30, 2025 Current | June 30, 2025 Non-current | June 30, 2025 Total | December 31, 2024 Current | December 31, 2024 Non-current | December 31, 2024 Total | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Secured bank borrowings | 71,200 | 260,210 | 331,410 | 189,637 | 132,691 | 322,328 | | Factoring borrowings | 49,890 | — | 49,890 | 38,061 | — | 38,061 | | **Total Borrowings** | **121,090** | **260,210** | **381,300** | **227,698** | **132,691** | **360,389** | - Secured bank borrowings are collateralized by the Group's assets, including property, plant and equipment, construction in progress, right-of-use assets, investment properties, and transferred receivables[100](index=100&type=chunk)[101](index=101&type=chunk) - Borrowings are also collateralized by corporate guarantees from certain subsidiaries, and guarantees from Mr. Ye Zhijie and his spouse, Mr. Huang Wengui, and an independent third-party credit guarantee company[100](index=100&type=chunk) [Repayment Schedule](index=35&type=section&id=Repayment%20Schedule) As of June 30, 2025, the group's total borrowings were RMB 381.3 million, with RMB 121.1 million due within one year and RMB 190.3 million due after more than three years Borrowings Repayment Schedule (RMB thousands) | Repayment Period | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within one year | 121,090 | 227,698 | | One to two years | 25,000 | 16,058 | | Two to three years | 44,900 | 19,980 | | Over three years | 190,310 | 96,653 | | **Total** | **381,300** | **360,389** | [Undrawn Borrowing Facilities](index=35&type=section&id=Undrawn%20Borrowing%20Facilities) As of June 30, 2025, the group had RMB 248.6 million in undrawn borrowing facilities, all of which were floating-rate bank borrowings maturing within one year Undrawn Borrowing Facilities (RMB thousands) | Maturity Period | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Maturing within one year | 248,640 | 800 | | Maturing in one to two years | — | 25,550 | | Maturing in two to three years | — | — | | Maturing after three years | — | 187 | | **Total** | **248,640** | **26,537** | [Commitments](index=35&type=section&id=Commitments) As of June 30, 2025, the group's total capital commitments amounted to RMB 451.7 million, primarily for contracted but unprovided property, plant and equipment Capital Commitments (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Contracted but not provided for — Property, plant and equipment | 451,719 | 115,447 | | Authorized but not provided for — Property, plant and equipment | — | 288,805 | | **Total** | **451,719** | **404,252** | [Related Party Transactions](index=36&type=section&id=Related%20Party%20Transactions) The group engaged in related party transactions, mainly involving advances from and repayments to Mr. Ye Zhijie, and amounts payable to Mr. Ye Zhijie and Mr. Huang Kaining, which are unsecured, interest-free, and repayable on demand [Transactions with Related Parties](index=36&type=section&id=Transactions%20with%20Related%20Parties) During the period, the group received advances of RMB 8.7 million from Mr. Ye Zhijie, compared to repayments of RMB 1.6 million in the prior year Transactions with Related Parties (RMB thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Advances from / (Repayments to) related parties — Mr. Ye Zhijie | 8,686 | (1,553) | [Balances with Related Parties](index=36&type=section&id=Balances%20with%20Related%20Parties) As of June 30, 2025, amounts payable to related parties, Mr. Ye Zhijie and Mr. Huang Kaining, totaled RMB 16.6 million, used to supplement working capital, unsecured, interest-free, and repayable on demand Amounts Due to Related Parties (RMB thousands) | Related Party | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Mr. Ye Zhijie | 9,233 | 547 | | Mr. Huang Kaining | 7,372 | 7,372 | | **Total** | **16,605** | **7,919** | - Amounts due to Mr. Ye Zhijie and Mr. Huang Kaining are related party advances used to supplement the Group's working capital needs, unsecured, interest-free, and repayable on demand[105](index=105&type=chunk) [Key Management Personnel Remuneration](index=36&type=section&id=Key%20Management%20Personnel%20Remuneration) Key management personnel remuneration for the six months ended June 30, 2025, was approximately RMB 1.6 million, a decrease from the prior year - Key management personnel remuneration for the six months ended June 30, 2025, was approximately **RMB 1,645,000** (2024: RMB 2,144,000)[105](index=105&type=chunk) [Corporate Governance and Other Information](index=36&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section outlines the company's commitment to sound corporate governance principles and compliance with relevant codes and regulations [Corporate Governance](index=37&type=section&id=Corporate%20Governance) The Board is committed to establishing sound corporate governance principles and confirms the company's compliance with the Corporate Governance Code during the period - The Board is committed to establishing sound corporate governance principles and practices and achieving high standards of corporate governance[107](index=107&type=chunk) - The Board has reviewed the Company's corporate governance practices and is satisfied that for the six months ended June 30, 2025, the Company has applied the principles and complied with the code provisions set out in the Corporate Governance Code[108](index=108&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors](index=37&type=section&id=Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The company adopted a code of conduct no less exacting than the Model Code, and all directors confirmed compliance during the period, with the code also applied to relevant employees with inside information - The Company has adopted a code of conduct regarding securities transactions by directors, the terms of which are no less exacting than the required standard set out in the Model Code[109](index=109&type=chunk) - Following specific enquiries made by the Company to all Directors, the Directors confirmed that they had complied with the required standards set out in the Model Code and the code of conduct regarding directors' dealings for the six months ended June 30, 2025[109](index=109&type=chunk) [Directors' and Chief Executive's Interests and/or Short Positions in the Shares, Underlying Shares and Debentures of the Company and its Associated Corporations](index=38&type=section&id=Directors%27%20and%20Chief%20Executive%27s%20Interests%20and%2For%20Short%20Positions%20in%20the%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20and%20its%20Associated%20Corporations) As of June 30, 2025, Mr. Ye Zhijie and Mr. Huang Wengui held substantial shares through controlled corporations, while Mr. Lai Quanshui, Mr. Qiu Limiao, and Mr. Ye Dan also held beneficial interests Directors' Interests in the Company's Shares | Director | Nature of Interest | Number of Shares Interested | Approximate Percentage of Interest in the Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Ye Zhijie | Interest in controlled corporation | 274,706,100 (L) | 36.73% | | Mr. Huang Wengui | Interest in controlled corporation | 121,568,700 (L) | 16.25% | | Mr. Lai Quanshui | Beneficial interest | 10,000,000 (L) | 1.34% | | Mr. Qiu Limiao | Beneficial interest | 56,000 (L) | 0.01% | | Mr. Ye Dan | Beneficial interest | 50,000 (L) | 0.01% | - Mr. Ye Zhijie is the sole shareholder of Zhixin Investment Holdings Limited, and Mr. Huang Wengui is the sole shareholder of Yaohao Holdings Limited, and are therefore deemed to be interested in the shares held by them[113](index=113&type=chunk) [Substantial Shareholders' Interests and/or Short Positions in the Shares and Underlying Shares of the Company](index=39&type=section&id=Substantial%20Shareholders%27%20Interests%20and%2For%20Short%20Positions%20in%20the%20Shares%20and%20Underlying%20Shares%20of%20the%20Company) As of June 30, 2025, Zhixin Investment Holdings Limited, Yaohao Holdings Limited, their respective spouses, and Huatai Securities Co., Ltd. and its subsidiaries were substantial shareholders of the company Substantial Shareholders' Long Positions in the Company's Shares | Name / Company Name | Nature of Interest | Number of Shares Interested | Approximate Percentage of Interest in the Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Zhixin Investment Holdings Limited | Beneficial interest | 274,706,100 | 36.73% | | Ms. Hong Wei | Spouse's interest | 274,706,100 | 36.73% | | Yaohao Holdings Limited | Beneficial interest | 121,568,700 | 16.25% | | Ms. Lin Lingling | Spouse's interest | 121,568,700 | 16.25% | | Huatai Securities Co., Ltd. | Interest in controlled corporation | 37,718,000 | 5.04% | | Huatai International Financial Holdings Company Limited | Interest in controlled corporation | 37,718,000 | 5.04% | | Huatai Financial Holdings (Hong Kong) Limited | Beneficial interest | 37,718,000 | 5.04% | - Ms. Hong Wei is the spouse of Mr. Ye Zhijie, and Ms. Lin Lingling is the spouse of Mr. Huang Wengui, and are deemed to be interested in the shares held by their respective spouses under the Securities and Futures Ordinance[117](index=117&type=chunk) - Huatai Securities Co., Ltd. and its subsidiaries (Huatai International Financial Holdings Company Limited, Huatai Financial Holdings (Hong Kong) Limited) hold shares through controlled corporate interests[117](index=117&type=chunk) [Changes in Directors](index=40&type=section&id=Changes%20in%20Directors) There were no changes in directors or their information requiring disclosure under the Listing Rules for the six months ended June 30, 2025 - For the six months ended June 30, 2025, there were no changes in directors or their information requiring disclosure under the Listing Rules[118](index=118&type=chunk) [Directors' Interests in Competing Businesses](index=40&type=section&id=Directors%27%20Interests%20in%20Competing%20Businesses) No directors held interests in any business competing or potentially competing with the group, nor had any conflicts of interest, for the six months ended June 30, 2025 - For the six months ended June 30, 2025, no director held any interest in any business competing or potentially competing, directly or indirectly, with the Group's business[119](index=119&type=chunk) - Nor were there any actual or potential conflicts of interest with the Group[119](index=119&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=40&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the six months ended June 30, 2025 - 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[120](index=120&type=chunk) [Review of Interim Financial Statements](index=40&type=section&id=Review%20of%20Interim%20Financial%20Statements) The unaudited condensed consolidated interim financial statements and this interim report for the six months ended June 30, 2025, have been reviewed by the Audit Committee - The unaudited condensed consolidated interim financial statements of the Company and its subsidiaries for the six months ended June 30, 2025, and this interim report have been reviewed by the Audit Committee[121](index=121&type=chunk) [Interim Dividend](index=40&type=section&id=Interim%20Dividend) The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025[122](index=122&type=chunk) [Glossary](index=40&type=section&id=Glossary) This section provides definitions for key terms used throughout the report

致：香港交易及結算所有限公司 公司名稱: 智欣集團控股有限公司 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) | 02187 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 3,000,000,000 | HKD | | 0.01 | HKD | | 30,000,000 | | 增加 / 減少 (-) | | | 0 | | | | HKD | | | | 本月底結存 | | | 3,000,000,000 | HKD | | 0.01 | HKD | | 30,000,000 | 本月底法定/註冊股本總額： HKD 30,000,000 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 ...

Group 1 - The company reported a revenue of RMB 260 million for the six months ending June 30, 2025, representing a year-on-year increase of 6.4% [1] - The company experienced a net loss of RMB 49.061 million, marking a shift from profit to loss compared to the previous year [1] - The loss per share was reported at RMB 0.066 [1]

Company Information [Board Members and Committees](index=3&type=section&id=Board%20Members%20and%20Committees) The Board of Directors consists of executive and independent non-executive directors, supported by Review, Nomination, Remuneration, and Strategy Committees - The Board of Directors includes **6 executive directors** and **3 independent non-executive directors**[6](index=6&type=chunk) - Four Board committees are established: Review, Nomination, Remuneration, and Strategy[6](index=6&type=chunk) [Registration and Business Locations](index=3&type=section&id=Registration%20and%20Business%20Locations) The company is registered in the Cayman Islands, with its headquarters and main China operations in Xiamen, Fujian Province, and its principal Hong Kong office in Causeway Bay - The company is registered in the **Cayman Islands**[6](index=6&type=chunk) - The main operating location in China is **Xiamen, Fujian Province**[6](index=6&type=chunk) [Share Registrar and Principal Bankers](index=4&type=section&id=Share%20Registrar%20and%20Principal%20Bankers) The Cayman Islands principal share registrar is Conyers Trust Company (Cayman) Limited, and the Hong Kong share registrar is Tricor Investor Services Limited, with principal bankers being China Construction Bank and Industrial Bank - The Hong Kong share registrar is **Tricor Investor Services Limited**[7](index=7&type=chunk) - Principal bankers are **China Construction Bank (Xinglin Branch)** and **Industrial Bank (Xiamen Wenbin Branch)**[7](index=7&type=chunk) Financial Highlights [Overview of Key Financial Indicators](index=5&type=section&id=Overview%20of%20Key%20Financial%20Indicators) For the six months ended June 30, 2025, the company's revenue increased by 6.4% to RMB259.7 million, but gross profit significantly decreased by 82.6% to RMB7.9 million, resulting in a loss of RMB49.1 million for the period Key Financial Data for the Six Months Ended June 30 | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | Change % | | :--- | :--- | :--- | :--- | | Revenue | 259,673 | 244,079 | 6.4% | | Gross Profit | 7,905 | 45,517 | (82.6%) | | Loss/(Profit) for the Period | (49,061) | 1,172 | (4,286.1%) | - Revenue growth was primarily driven by a **14.0% increase in sales of ready-mixed concrete** and a **6.8% increase in revenue from iron ore tailings recycling and eco-friendly bricks**[9](index=9&type=chunk) - Gross profit significantly decreased by **82.6%**, mainly due to a gross loss in the ready-mixed concrete business[10](index=10&type=chunk) - The company recorded a **loss of RMB49.1 million** for the current period, compared to a profit of RMB1.2 million in the same period last year[11](index=11&type=chunk) Chairman's Report [Business Overview and Performance Review](index=6&type=section&id=Business%20Overview%20and%20Performance%20Review) The Group primarily manufactures and supplies concrete building materials in Xiamen, Fujian, and engages in comprehensive utilization of iron ore tailings and eco-friendly brick production in Changjiang, Hainan, with revenue growth driven by tailings recycling and ready-mixed concrete, but overall gross profit declined significantly due to gross loss in ready-mixed concrete, leading to a net loss - The Group's business is categorized into **ready-mixed concrete, precast concrete components, and iron ore tailings recycling and eco-friendly bricks**[12](index=12&type=chunk) - Revenue for the period was approximately **RMB259.7 million**, a **6.4% year-on-year increase**, primarily driven by increased revenue from iron ore tailings recycling and ready-mixed concrete[12](index=12&type=chunk) - Overall gross profit decreased by **82.6% to RMB7.9 million**, mainly due to a gross loss of approximately **RMB19.3 million** in the ready-mixed concrete business[13](index=13&type=chunk) - The Group recorded a **net loss of approximately RMB49.1 million** for the period, primarily attributable to segment losses in the ready-mixed concrete and precast concrete components businesses[13](index=13&type=chunk) [Business Outlook](index=6&type=section&id=Business%20Outlook) Despite anticipated ongoing market pressure in ready-mixed concrete and precast concrete components, the Group remains optimistic about the iron ore tailings recycling and eco-friendly bricks business, expecting it to continue generating strong revenue - Market pressure on ready-mixed concrete and precast concrete components is expected to persist[13](index=13&type=chunk) - The outlook for the **comprehensive utilization of iron ore tailings business is optimistic**, with expectations of continued strong revenue generation[13](index=13&type=chunk) Management Discussion and Analysis [Business Review](index=7&type=section&id=Business%20Review) The Group's revenue increased by 6.4% to RMB259.7 million, with ready-mixed concrete revenue up 14.0% but incurring losses due to intense competition, while precast concrete components revenue sharply declined by 91.8% with a segment loss, and iron ore tailings recycling and eco-friendly bricks revenue grew by 6.8% due to higher selling prices, but cost of sales increased by 26.8%, leading to an 82.6% decrease in gross profit [Revenue Analysis (By Business Segment)](index=7&type=section&id=Revenue%20Analysis%20%28By%20Business%20Segment%29) Total revenue for the period was approximately RMB259.7 million, a 6.4% year-on-year increase, with ready-mixed concrete revenue growing 14.0% to RMB148.2 million but remaining unprofitable due to intense market competition, precast concrete components revenue significantly decreasing by 91.8% to RMB870 thousand, and iron ore tailings recycling and eco-friendly bricks revenue increasing by 6.8% to RMB110.6 million, mainly due to higher selling prices Comparison of Revenue by Business Segment | Business Segment | 2025 (RMB thousand) | 2024 (RMB thousand) | Change % | | :--- | :--- | :--- | :--- | | Ready-mixed Concrete | 148,220 | 130,000 | 14.0% | | Precast Concrete Components | 870 | 10,600 | (91.8%) | | Iron Ore Tailings Recycling and Eco-friendly Bricks | 110,600 | 103,500 | 6.8% | | **Total Revenue** | **259,700** | **244,100** | **6.4%** | - The ready-mixed concrete segment incurred losses due to **intense competition and narrowing profit margins** in the Xiamen market[20](index=20&type=chunk) - Precast concrete components revenue significantly decreased and resulted in a segment loss, also impacted by **fierce competition**[20](index=20&type=chunk) [Cost of Sales](index=7&type=section&id=Cost%20of%20Sales) Cost of sales increased by 26.8% year-on-year to RMB251.8 million, primarily due to increased revenue from iron ore tailings recycling and eco-friendly bricks, and rising raw material costs for ready-mixed concrete Comparison of Cost of Sales | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | Change % | | :--- | :--- | :--- | :--- | | Cost of Sales | 251,800 | 198,600 | 26.8% | - The increase in cost of sales was mainly influenced by **higher revenue from iron ore tailings recycling and eco-friendly bricks** and **rising raw material costs for ready-mixed concrete**[21](index=21&type=chunk) [Gross Profit and Gross Margin](index=7&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Overall gross profit significantly decreased by 82.6% to RMB7.9 million, primarily because the increase in cost of sales outpaced revenue growth, particularly as the ready-mixed concrete business shifted from a gross profit in the prior period to a gross loss of approximately RMB19.3 million in the current period Comparison of Gross Profit | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | Change % | | :--- | :--- | :--- | :--- | | Gross Profit | 7,900 | 45,500 | (82.6%) | - The ready-mixed concrete business shifting from a gross profit of approximately **RMB12.9 million** in the same period of 2024 to a gross loss of approximately **RMB19.3 million** in the current period is the primary reason for the overall gross profit decline[23](index=23&type=chunk) [Operating Expenses and Profit](index=8&type=section&id=Operating%20Expenses%20and%20Profit) Other income increased by 83.4% to RMB5.2 million, selling expenses decreased by 38.1%, and administrative expenses increased by 46.5% to RMB42.6 million, mainly due to reclassification of precast concrete component production line depreciation, while net finance costs decreased by 13.6%, and income tax shifted from a credit to an expense, resulting in a loss of RMB49.1 million for the period [Other Income](index=8&type=section&id=Other%20Income) Other income increased by 83.4% to RMB5.2 million, primarily due to non-recurring government grants and awards, as well as compensation for delayed settlement of trade receivables Comparison of Other Income | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | Change % | | :--- | :--- | :--- | :--- | | Other Income | 5,200 | 2,800 | 83.4% | - The increase in other income was mainly attributable to **non-recurring government grants** and **compensation for delayed settlement of trade receivables**[24](index=24&type=chunk) [Selling Expenses](index=8&type=section&id=Selling%20Expenses) Selling expenses decreased by 38.1% to RMB6.5 million, primarily due to reduced sales volume of precast concrete components Comparison of Selling Expenses | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | Change % | | :--- | :--- | :--- | :--- | | Selling Expenses | 6,500 | 10,500 | (38.1%) | - The decrease in selling expenses was mainly due to **lower sales volume of precast concrete components**[25](index=25&type=chunk) [Administrative Expenses](index=8&type=section&id=Administrative%20Expenses) Administrative expenses increased by 46.5% to RMB42.6 million, primarily due to the reclassification of depreciation for the precast concrete component production line to administrative costs following its temporary suspension Comparison of Administrative Expenses | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | Change % | | :--- | :--- | :--- | :--- | | Administrative Expenses | 42,600 | 29,100 | 46.5% | - The increase in administrative expenses was primarily due to the **reclassification of depreciation for the precast concrete component production line**[26](index=26&type=chunk) [Net Finance Costs](index=8&type=section&id=Net%20Finance%20Costs) Net finance costs decreased by 13.6% to RMB8.7 million, mainly due to a reduction in interest on bank borrowings Comparison of Net Finance Costs | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | Change % | | :--- | :--- | :--- | :--- | | Net Finance Costs | 8,700 | 10,000 | (13.6%) | - The decrease in net finance costs was mainly due to **lower interest on bank borrowings**[27](index=27&type=chunk) [Income Tax Expense/Credit](index=8&type=section&id=Income%20Tax%20Expense%2FCredit) Income tax expense for the period was approximately RMB1.2 million, compared to an income tax credit of approximately RMB1.3 million in the prior period, primarily due to losses in the ready-mixed concrete and precast concrete components businesses Comparison of Income Tax Expense/Credit | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Income Tax Expense/(Credit) | 1,200 | (1,300) | - Income tax expense was primarily due to **losses in the ready-mixed concrete and precast concrete components businesses**[28](index=28&type=chunk) [Loss/Profit for the Period](index=8&type=section&id=Loss%2FProfit%20for%20the%20Period) Considering the aforementioned factors, the Group recorded a loss of approximately RMB49.1 million for the current period, compared to a profit of RMB1.2 million in the prior period Comparison of Loss/Profit for the Period | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Loss/(Profit) for the Period | (49,100) | 1,200 | [Liquidity and Financial Resources](index=8&type=section&id=Liquidity%20and%20Financial%20Resources) The Group primarily funds its operations through cash generated from operating activities and borrowings, reporting net current liabilities of approximately RMB37.5 million and cash and cash equivalents of approximately RMB15.7 million as of June 30, 2025, with a significant decrease in current borrowings and a substantial increase in non-current borrowings, leading to a rise in the gearing ratio to 54% - The Group primarily funds its operations through **cash generated from operating activities and borrowings**[30](index=30&type=chunk) Liquidity and Borrowing Status | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Current Liabilities | 37,500 | 72,500 | | Cash and Cash Equivalents | 15,700 | 19,000 | | Current Borrowings | 121,100 | 227,700 | | Non-current Borrowings | 260,200 | 132,700 | | Gearing Ratio | 54% | 48% | [Financial Risk Management](index=9&type=section&id=Financial%20Risk%20Management) The Group primarily faces market risks (including foreign exchange and interest rate risks), credit risk, and liquidity risk, currently having no foreign currency hedging policy but with management continuously monitoring, and no contingent liabilities for the period - The Group faces **market risks (foreign exchange risk and interest rate risk), credit risk, and liquidity risk**[32](index=32&type=chunk) - There is currently **no foreign currency hedging policy**, but management will continue to monitor it[32](index=32&type=chunk) - There were **no contingent liabilities** for the current period or at the end of the previous year[35](index=35&type=chunk) [Capital Commitments and Significant Events](index=9&type=section&id=Capital%20Commitments%20and%20Significant%20Events) As of June 30, 2025, the Group's capital commitments totaled approximately RMB451.8 million, a significant increase from the end of the previous year, with no major acquisitions, disposals, or investments during the period, and the capital structure remaining unchanged Comparison of Capital Commitments | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Capital Commitments | 451,800 | 404,300 | - There were **no significant acquisitions or disposals** during the period[37](index=37&type=chunk) - There were **no significant investments** during the period[38](index=38&type=chunk) [Employees and Remuneration Policy](index=10&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 376 employees, a decrease from the prior period, with remuneration determined by factors such as qualifications, responsibilities, contributions, and experience, and some factory workers outsourced for efficiency Comparison of Employee Numbers | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Number of Employees | 376 | 462 | - The remuneration policy considers factors such as **qualifications, responsibilities, contributions, and experience**[39](index=39&type=chunk) - Some factory workers are outsourced to **enhance human resource efficiency and flexibility**[39](index=39&type=chunk) [Use of Proceeds](index=10&type=section&id=Use%20of%20Proceeds) The net proceeds from the share offer amounted to approximately HKD238.7 million, of which HKD5.4 million had been utilized as of June 30, 2025, primarily for expanding precast concrete component production capacity, with the majority remaining unutilized Use of Proceeds from Share Offer | Purpose | Updated Intended Use of Net Proceeds (million HKD) | Utilized as of December 31, 2024 (million HKD) | Utilized from January 1 to June 30, 2025 (million HKD) | Unutilized as of June 30, 2025 (million HKD) | | :--- | :--- | :--- | :--- | :--- | | Expand precast concrete component production capacity | 24.5 | 5.4 | — | 5.4 | | Enhance IT systems | 1.2 | — | — | — | | Improve environmental protection systems | 1.2 | — | — | — | | Purchase mixer trucks and concrete pump trucks | 2.0 | — | — | — | | General working capital | 105.3 | — | — | — | | Repay borrowings | 104.5 | — | — | — | | **Total** | **238.7** | **5.4** | **—** | **5.4** | - The majority of the net proceeds remain unutilized, with the remaining funds for expanding precast concrete component production capacity expected to be utilized before **December 2025**[40](index=40&type=chunk) [Prospects](index=10&type=section&id=Prospects) Increased competition in Xiamen's ready-mixed concrete and precast concrete component markets is pressuring the Group's profitability, while the iron ore tailings comprehensive utilization business in Hainan is expected to remain a strong revenue source due to ample tailings supply and demand from neighboring regions - Increased competition in the Xiamen ready-mixed concrete and precast concrete component markets is exerting **significant pressure on profitability**[41](index=41&type=chunk) - The iron ore tailings comprehensive utilization business in Hainan is expected to continue as a **strong source of revenue**[41](index=41&type=chunk) Condensed Consolidated Interim Statement of Comprehensive Income [Key Income Statement Data](index=11&type=section&id=Key%20Income%20Statement%20Data) For the six months ended June 30, 2025, the Group reported revenue of RMB259,673 thousand, gross profit of RMB7,905 thousand, a loss for the period of RMB49,061 thousand, and basic loss per share of RMB0.066 Condensed Consolidated Interim Statement of Comprehensive Income (For the Six Months Ended June 30) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 259,673 | 244,079 | | Cost of Sales | (251,768) | (198,562) | | Gross Profit | 7,905 | 45,517 | | Other Income | 5,203 | 2,837 | | Operating Profit/(Loss) | (39,187) | 9,891 | | Net Finance Costs | (8,669) | (10,032) | | Loss Before Income Tax | (47,856) | (141) | | Income Tax Expense/(Credit) | (1,205) | 1,313 | | Loss/(Profit) for the Period Attributable to Owners of the Company | (49,061) | 1,172 | | Basic and Diluted Loss/Earnings Per Share (RMB) | (0.066) | 0.002 | Condensed Consolidated Interim Statement of Financial Position [Key Balance Sheet Data](index=12&type=section&id=Key%20Balance%20Sheet%20Data) As of June 30, 2025, the Group's total assets were RMB1,129,847 thousand, total liabilities were RMB800,959 thousand, and total equity was RMB328,888 thousand, with non-current assets increasing while current assets and total equity decreased Condensed Consolidated Interim Statement of Financial Position (As of June 30) | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Assets** | | | | Non-current Assets | 646,184 | 601,421 | | Current Assets | 483,663 | 531,233 | | **Total Assets** | **1,129,847** | **1,132,654** | | **Equity** | | | | Total Equity | 328,888 | 377,949 | | **Liabilities** | | | | Non-current Liabilities | 279,768 | 150,989 | | Current Liabilities | 521,191 | 603,716 | | **Total Liabilities** | **800,959** | **754,705** | | **Total Equity and Liabilities** | **1,129,847** | **1,132,654** | - Non-current assets increased, primarily reflected in an **increase in property, plant and equipment**[44](index=44&type=chunk) - Current assets decreased, mainly due to a **reduction in trade receivables and cash and bank balances**[44](index=44&type=chunk) - Non-current liabilities significantly increased, primarily driven by **higher borrowings**[46](index=46&type=chunk) Condensed Consolidated Interim Statement of Changes in Equity [Changes in Shareholders' Equity](index=14&type=section&id=Changes%20in%20Shareholders%27%20Equity) As of June 30, 2025, total equity attributable to owners of the Company was RMB328,888 thousand, a decrease from RMB377,949 thousand at the beginning of the period, mainly due to a loss of RMB49,061 thousand recorded during the period Condensed Consolidated Interim Statement of Changes in Equity (For the Six Months Ended June 30) | Metric | Share Capital (RMB thousand) | Reserves (RMB thousand) | Retained Earnings/(Accumulated Losses) (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | January 1, 2025 | 6,358 | 364,659 | 6,932 | 377,949 | | Loss for the Period | — | — | (49,061) | (49,061) | | June 30, 2025 | 6,358 | 364,659 | (42,129) | 328,888 | | January 1, 2024 | 6,358 | 364,659 | 82,131 | 453,148 | | Profit for the Period | — | — | 1,172 | 1,172 | | June 30, 2024 | 6,358 | 364,659 | 83,303 | 454,320 | - A **loss of RMB49,061 thousand** was recorded for the current period, leading to a shift from retained earnings to accumulated losses[47](index=47&type=chunk) Condensed Consolidated Interim Statement of Cash Flows [Key Cash Flow Data](index=15&type=section&id=Key%20Cash%20Flow%20Data) For the six months ended June 30, 2025, net cash generated from operating activities was RMB8,262 thousand, net cash used in investing activities was RMB70,506 thousand, and net cash generated from financing activities was RMB58,933 thousand, resulting in a decrease in cash and cash equivalents at the end of the period compared to the beginning Condensed Consolidated Interim Statement of Cash Flows (For the Six Months Ended June 30) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 8,262 | 53,998 | | Net Cash Used in Investing Activities | (70,506) | (28,874) | | Net Cash Generated from/(Used in) Financing Activities | 58,933 | (24,780) | | Net Decrease/(Increase) in Cash and Cash Equivalents | (3,311) | 344 | | Cash and Cash Equivalents at End of Period | 15,705 | 26,212 | - Net cash generated from operating activities significantly decreased, while net cash used in investing activities **substantially increased**[49](index=49&type=chunk) - Financing activities shifted from a net cash outflow in the prior period to a **net cash inflow** in the current period, primarily due to an increase in proceeds from bank borrowings[49](index=49&type=chunk) Notes to the Condensed Consolidated Interim Financial Statements [1. General Information of the Group](index=16&type=section&id=1.%20General%20Information%20of%20the%20Group) The Company was incorporated in the Cayman Islands on November 14, 2018, primarily engaged in the manufacturing and sale of ready-mixed concrete and precast concrete components in China, and since 2022, in eco-friendly bricks and iron ore tailings recycling, with its shares listed on the Main Board of the Hong Kong Stock Exchange since March 26, 2021 - The Company was incorporated in the **Cayman Islands on November 14, 2018**[50](index=50&type=chunk) - Principal businesses include **manufacturing and sale of ready-mixed concrete and precast concrete components**, as well as **eco-friendly bricks and iron ore tailings recycling**[50](index=50&type=chunk) - The Company's shares have been listed on the **Main Board of the Hong Kong Stock Exchange since March 26, 2021**[51](index=51&type=chunk) [2. Basis of Preparation](index=16&type=section&id=2.%20Basis%20of%20Preparation) The condensed consolidated interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2024 - The financial statements are prepared in accordance with **Hong Kong Accounting Standard 34 "Interim Financial Reporting"**[55](index=55&type=chunk) - They should be read in conjunction with the **annual consolidated financial statements for the year ended December 31, 2024**[55](index=55&type=chunk) [3. Significant Accounting Policies](index=17&type=section&id=3.%20Significant%20Accounting%20Policies) The accounting policies adopted for the current period are consistent with those of the previous year, except for the adoption of new and revised standards, such as HKAS 21 (Amendment) "Lack of Exchangeability," and management is currently assessing the full impact of new and revised standards not yet effective, such as HKFRS 18 - The current period adopted **HKAS 21 (Amendment) "Lack of Exchangeability," effective from January 1, 2025**[57](index=57&type=chunk)[58](index=58&type=chunk) - Management is assessing the impact of new and revised standards not yet effective, including **HKFRS 18 "Presentation and Disclosure in Financial Statements" (effective January 1, 2027)**[59](index=59&type=chunk) [4. Estimates](index=18&type=section&id=4.%20Estimates) The preparation of interim financial statements requires management to make judgments, estimates, and assumptions, and actual results may differ from these estimates, with significant judgments and sources of estimation uncertainty remaining consistent with the prior year - The preparation of interim financial statements involves **management judgments, estimates, and assumptions**, and actual results may differ[60](index=60&type=chunk) - Significant judgments and sources of estimation uncertainty for the current period are **consistent with the prior year**[60](index=60&type=chunk) [5. Financial Risk Management](index=19&type=section&id=5.%20Financial%20Risk%20Management) The Group faces market risks (foreign exchange and interest rate risks), credit risk, and liquidity risk, with risk management policies unchanged since the prior year-end, credit risk primarily related to cash, bank balances, and trade receivables, measured using a simplified approach for expected credit losses, and liquidity risk managed by analyzing contractual maturities of non-derivative financial liabilities, while the carrying amounts of liquid financial assets and liabilities approximate their fair values [5.1 Financial Risk Factors](index=19&type=section&id=5.1%20Financial%20Risk%20Factors) The Group faces market risk, credit risk, and liquidity risk, with credit risk primarily arising from cash and bank balances and trade receivables, for which expected credit losses are measured using the simplified approach under HKFRS 9, grouped by overdue days and customer credit risk characteristics, and total loss allowance for trade receivables was RMB32,885 thousand as of June 30, 2025 - The Group's risk management program aims to **minimize the adverse effects of financial market unpredictability** on financial performance[61](index=61&type=chunk) - Credit risk for trade receivables is measured using the **simplified approach under HKFRS 9** for expected credit losses[66](index=66&type=chunk) Loss Allowance for Trade Receivables (As of June 30) | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Gross Carrying Amount | 408,621 | 422,274 | | Total Loss Allowance | 32,885 | 31,291 | [5.2 Fair Value Estimation of Financial Assets and Liabilities Measured at Amortized Cost](index=22&type=section&id=5.2%20Fair%20Value%20Estimation%20of%20Financial%20Assets%20and%20Liabilities%20Measured%20at%20Amortized%20Cost) The carrying amounts of the Group's current financial assets and liabilities approximate their fair values due to their short-term nature - The carrying amounts of current financial assets and liabilities approximate their fair values due to their **short-term nature**[71](index=71&type=chunk) [6. Segment Information](index=23&type=section&id=6.%20Segment%20Information) The Group's operations are divided into three segments: ready-mixed concrete, precast concrete components, and recycled iron ore tailings and bricks, with ready-mixed concrete and precast concrete components segments recording losses, while the recycled iron ore tailings and bricks segment recorded a profit, and contract liabilities are primarily related to recycled iron ore tailings and bricks and ready-mixed concrete businesses [6(a) Segment Information of the Group](index=24&type=section&id=6%28a%29%20Segment%20Information%20of%20the%20Group) For the six months ended June 30, 2025, the ready-mixed concrete segment reported revenue of RMB148,220 thousand and a gross loss of RMB19,268 thousand, the precast concrete components segment reported revenue of RMB870 thousand and a gross profit of RMB330 thousand but a segment loss of RMB10,371 thousand, and the recycled iron ore tailings and bricks segment reported revenue of RMB110,583 thousand, a gross profit of RMB26,843 thousand, and a segment profit of RMB11,933 thousand Segment Results (For the Six Months Ended June 30) | Segment | 2025 Revenue (RMB thousand) | 2025 Gross Profit (RMB thousand) | 2025 Segment Result (RMB thousand) | | :--- | :--- | :--- | :--- | | Ready-mixed Concrete | 148,220 | (19,268) | (39,124) | | Precast Concrete Components | 870 | 330 | (10,371) | | Recycled Iron Ore Tailings and Bricks | 110,583 | 26,843 | 11,933 | | **Total** | **259,673** | **7,905** | **(37,562)** | - The ready-mixed concrete segment shifting from a gross profit in the prior period to a **gross loss** in the current period is the main reason for the overall gross profit decline[75](index=75&type=chunk) - The recycled iron ore tailings and bricks segment continues to contribute **positive gross profit and segment results**[75](index=75&type=chunk) [6(b) Contract Liabilities](index=26&type=section&id=6%28b%29%20Contract%20Liabilities) As of June 30, 2025, total contract liabilities amounted to RMB7,156 thousand, primarily arising from the recycled iron ore tailings and bricks and ready-mixed concrete businesses, with RMB4,255 thousand of revenue recognized during the period related to the opening balance of contract liabilities Contract Liabilities (As of June 30) | Business Segment | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Recycled Iron Ore Tailings and Bricks | 469 | 3,732 | | Precast Concrete Components | 100 | — | | Ready-mixed Concrete | 6,587 | 1,321 | | **Total** | **7,156** | **5,053** | Revenue Recognized Related to Contract Liabilities (For the Six Months Ended June 30) | Business Segment | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Ready-mixed Concrete | 975 | 233 | | Precast Concrete Components | — | 320 | | Recycled Iron Ore Tailings and Bricks | 3,280 | 2,427 | | **Total** | **4,255** | **2,980** | [7. Expenses by Nature](index=27&type=section&id=7.%20Expenses%20by%20Nature) For the six months ended June 30, 2025, the Group's total expenses were RMB300,868 thousand, an increase from the prior period, with raw materials and consumables used, employee benefit expenses, and transportation expenses being the main components Expenses by Nature (For the Six Months Ended June 30) | Expense Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Raw Materials and Consumables Used | 195,381 | 126,214 | | Employee Benefit Expenses | 28,220 | 27,645 | | Outsourcing Service Fees | 16,949 | 18,101 | | Depreciation of Property, Plant and Equipment | 15,375 | 15,637 | | Transportation Expenses | 16,758 | 17,232 | | Utilities | 7,938 | 10,897 | | **Total** | **300,868** | **238,131** | - The significant increase in **raw materials and consumables used** was the primary reason for the rise in total expenses[80](index=80&type=chunk) [8. Income Tax Expense/(Credit)](index=27&type=section&id=8.%20Income%20Tax%20Expense%2F%28Credit%29) For the six months ended June 30, 2025, the Group's income tax expense was RMB1,205 thousand, compared to an income tax credit of RMB1,313 thousand in the prior period, with China corporate income tax at 25% and some subsidiaries enjoying a preferential rate of 15%, and no provision for China withholding income tax made for the period Income Tax Expense/(Credit) (For the Six Months Ended June 30) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current Income Tax — China Income Tax | 1,274 | (1,868) | | Deferred Income Tax | (69) | 555 | | **Income Tax Expense/(Credit)** | **1,205** | **(1,313)** | - China corporate income tax rate is **25%**, with some subsidiaries enjoying a **preferential tax rate of 15%**[84](index=84&type=chunk) - No provision for China withholding income tax was made for the period, as the parent company can **control the timing of distributions from its subsidiaries**[84](index=84&type=chunk) [9. Basic and Diluted Loss/Earnings Per Share](index=28&type=section&id=9.%20Basic%20and%20Diluted%20Loss%2FEarnings%20Per%20Share) For the six months ended June 30, 2025, basic loss per share attributable to owners of the Company was RMB0.066, compared to basic earnings per share of RMB0.002 in the prior period, with diluted loss per share being the same as basic loss per share due to no potential dilutive ordinary shares Basic Loss/Earnings Per Share (For the Six Months Ended June 30) | Metric | 2025 (RMB) | 2024 (RMB) | | :--- | :--- | :--- | | Basic Loss/Earnings Per Share | (0.066) | 0.002 | - The weighted average number of ordinary shares in issue was **748,000,000 shares**[86](index=86&type=chunk) - Diluted earnings per share is the same as basic earnings per share due to **no potential dilutive ordinary shares** for the period[87](index=87&type=chunk) [10. Dividends](index=29&type=section&id=10.%20Dividends) No dividends were paid, declared, or proposed for the six months ended June 30, 2025 - **No dividends** were paid, declared, or proposed for the period[88](index=88&type=chunk) [11. Property, Plant and Equipment, Right-of-Use Assets, Investment Properties and Intangible Assets](index=29&type=section&id=11.%20Property%2C%20Plant%20and%20Equipment%2C%20Right-of-Use%20Assets%2C%20Investment%20Properties%20and%20Intangible%20Assets) As of June 30, 2025, the carrying amount of property, plant and equipment increased to RMB456,253 thousand, primarily due to additions, while right-of-use assets, investment properties, and intangible assets remained relatively stable, and some of the Group's assets are pledged as security for borrowings Non-current Asset Movements (As of June 30) | Metric | Property, Plant and Equipment (RMB thousand) | Right-of-Use Assets (RMB thousand) | Investment Properties (RMB thousand) | Intangible Assets (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | January 1, 2025 | 412,302 | 100,367 | 31,085 | 39,403 | | Additions | 60,758 | — | — | 19 | | Depreciation/Amortization | (15,375) | (1,695) | (557) | (17) | | June 30, 2025 | 456,253 | 98,672 | 30,528 | 39,405 | - Additions to property, plant and equipment amounted to **RMB60,758 thousand**[89](index=89&type=chunk) - The Group has **pledged certain assets as security for borrowings**[89](index=89&type=chunk) [12. Inventories](index=30&type=section&id=12.%20Inventories) As of June 30, 2025, total inventories amounted to RMB18,521 thousand, slightly lower than the prior year-end, with an impairment provision for inventories of RMB1,410 thousand Inventory Composition (As of June 30) | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Raw Materials | 13,047 | 12,702 | | Finished Goods | 6,884 | 7,892 | | Less: Impairment Provision for Inventories | (1,410) | (1,601) | | **Total** | **18,521** | **18,993** | - The impairment provision for inventories at the end of the period was **RMB1,410 thousand**[90](index=90&type=chunk) [13. Trade Receivables](index=30&type=section&id=13.%20Trade%20Receivables) As of June 30, 2025, total trade receivables amounted to RMB413,619 thousand, a decrease from the prior year-end, comprising current trade receivables of RMB403,782 thousand and non-current retention receivables of RMB9,837 thousand, with the majority of trade receivables aged within one year Trade Receivables (As of June 30) | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Current Trade Receivables | 403,782 | 451,217 | | Non-current Retention Receivables | 9,837 | 13,810 | | **Total** | **413,619** | **465,027** | - The carrying amount of trade receivables includes receivables subject to factoring arrangements of **RMB49,890 thousand**[92](index=92&type=chunk) Aging Analysis of Trade Receivables (As of June 30) | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 Year | 261,330 | 261,204 | | 1 to 2 Years | 51,130 | 74,880 | | 2 to 3 Years | 71,449 | 99,729 | | Over 3 Years | 62,595 | 60,505 | | **Total** | **446,504** | **496,318** | [14. Prepayments, Deposits and Other Receivables](index=31&type=section&id=14.%20Prepayments%2C%20Deposits%20and%20Other%20Receivables) As of June 30, 2025, total prepayments, deposits, and other receivables amounted to RMB45,655 thousand, an increase from the prior year-end, primarily due to an increase in prepayments for raw materials and operating expenses Prepayments, Deposits and Other Receivables (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Prepayments for Raw Materials and Operating Expenses | 15,100 | 12,796 | | Recoverable Deductible VAT | 7,430 | 6,973 | | Rental Receivables | 4,089 | 4,840 | | Refundable Deposits | 10,110 | 9,285 | | Other Receivables | 8,926 | 8,093 | | **Total** | **45,655** | **41,987** | [15. Cash and Bank Balances](index=32&type=section&id=15.%20Cash%20and%20Bank%20Balances) As of June 30, 2025, cash and bank balances amounted to RMB15,705 thousand, a decrease from the prior year-end, with restricted bank balances pledged for the issuance of bills payable Cash and Bank Balances (As of June 30) | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Cash on Hand and at Bank | 15,705 | 19,036 | - Restricted bank balances have been **pledged for the issuance of bills payable**[95](index=95&type=chunk) [16. Share Capital](index=32&type=section&id=16.%20Share%20Capital) As of June 30, 2025, the Company's authorized share capital was 3,000,000,000 shares, and issued share capital was 748,000,000 shares, with a share capital amount of RMB6,358 thousand, remaining unchanged from the beginning of the period Share Capital Status (As of June 30) | Metric | Number of Ordinary Shares | Share Capital (RMB thousand) | | :--- | :--- | :--- | | Authorized Share Capital | 3,000,000,000 | 25,500 | | Issued Share Capital | 748,000,000 | 6,358 | - Issued share capital has **remained unchanged since January 1, 2025**[96](index=96&type=chunk) [17. Reserves](index=32&type=section&id=17.%20Reserves) As of June 30, 2025, the Group's total reserves amounted to RMB364,659 thousand, including share premium, capital reserve, and statutory reserve, remaining unchanged from the beginning of the period Reserve Composition (From January 1 to June 30, 2025) | Reserve Type | 2025 (RMB thousand) | | :--- | :--- | | Share Premium | 220,966 | | Capital Reserve | 127,135 | | Statutory Reserve | 16,558 | | **Total** | **364,659** | - Total reserves have **remained unchanged since January 1, 2025**[96](index=96&type=chunk) [18. Trade Payables](index=33&type=section&id=18.%20Trade%20Payables) As of June 30, 2025, total trade payables amounted to RMB322,425 thousand, an increase from the prior year-end, with the majority of payables aged within one year Trade Payables (As of June 30) | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Payables — Third Parties | 322,425 | 299,173 | Aging Analysis of Trade Payables (As of June 30) | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within One Year | 266,976 | 246,851 | | One to Two Years | 15,555 | 50,035 | | Over Two Years | 39,894 | 2,287 | | **Total** | **322,425** | **299,173** | [19. Other Payables and Accrued Expenses](index=33&type=section&id=19.%20Other%20Payables%20and%20Accrued%20Expenses) As of June 30, 2025, total other payables and accrued expenses amounted to RMB70,362 thousand, largely consistent with the prior year-end, primarily including payables for property, plant and equipment purchases and amounts due to related parties Other Payables and Accrued Expenses (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Payables for Purchase of Property, Plant and Equipment | 31,972 | 31,079 | | Amounts Due to Related Parties | 16,605 | 7,919 | | Accrued Operating Expenses | 9,691 | 10,432 | | Employee Benefit Payables | 2,903 | 7,138 | | Other Tax Payables | 3,436 | 6,336 | | Others | 5,755 | 7,060 | | **Total** | **70,362** | **69,964** | [20. Borrowings](index=34&type=section&id=20.%20Borrowings) As of June 30, 2025, the Group's total borrowings amounted to RMB381,300 thousand, with a significant increase in non-current borrowings, and bank borrowings are secured by company assets, subsidiary equity, and related party guarantees, while the Group has RMB248,640 thousand in undrawn borrowing facilities [20(a) Bank Borrowings](index=34&type=section&id=20%28a%29%20Bank%20Borrowings) As of June 30, 2025, total bank borrowings amounted to RMB381,300 thousand, including secured borrowings of RMB331,410 thousand and factoring borrowings of RMB49,890 thousand, with borrowings secured by the Group's assets, subsidiary equity, and related parties Borrowing Composition (As of June 30) | Type | June 30, 2025 Current (RMB thousand) | June 30, 2025 Non-current (RMB thousand) | June 30, 2025 Total (RMB thousand) | | :--- | :--- | :--- | :--- | | Bank Borrowings — Secured | 71,200 | 260,210 | 331,410 | | Bank Borrowings — Factoring | 49,890 | — | 49,890 | | **Total Borrowings** | **121,090** | **260,210** | **381,300** | - Secured bank borrowings are pledged by **property, plant and equipment, construction in progress, right-of-use assets, investment properties, and transferred receivables**[100](index=100&type=chunk)[101](index=101&type=chunk) [20(b) Repayment Schedule](index=35&type=section&id=20%28b%29%20Repayment%20Schedule) As of June 30, 2025, the Group's total borrowings amounted to RMB381,300 thousand, of which RMB121,090 thousand are repayable within one year, and the majority of borrowings (RMB190,310 thousand) are repayable after three years Borrowing Repayment Schedule (As of June 30) | Repayment Period | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within One Year | 121,090 | 227,698 | | One to Two Years | 25,000 | 16,058 | | Two to Three Years | 44,900 | 19,980 | | Over Three Years | 190,310 | 96,653 | | **Total** | **381,300** | **360,389** | [20(c) Undrawn Borrowing Facilities](index=35&type=section&id=20%28c%29%20Undrawn%20Borrowing%20Facilities) As of June 30, 2025, the Group had RMB248,640 thousand in undrawn borrowing facilities, all of which are floating-rate bank borrowings maturing within one year Undrawn Borrowing Facilities (As of June 30) | Maturity Period | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Maturing Within One Year | 248,640 | 800 | | Maturing One to Two Years | — | 25,550 | | Maturing Two to Three Years | — | — | | Maturing After Three Years | — | 187 | | **Total** | **248,640** | **26,537** | [21. Commitments](index=35&type=section&id=21.%20Commitments) As of June 30, 2025, the Group's total capital commitments amounted to RMB451,719 thousand, all of which were contracted but not provided for property, plant and equipment [21(a) Capital Commitments](index=35&type=section&id=21%28a%29%20Capital%20Commitments) As of June 30, 2025, the Group's capital commitments for property, plant and equipment, contracted but not provided for, amounted to RMB451,719 thousand, a significant increase from RMB115,447 thousand at the prior year-end Capital Expenditure Commitments (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Contracted but not Provided For — Property, Plant and Equipment | 451,719 | 115,447 | | Authorized but not Provided For — Property, Plant and Equipment | — | 288,805 | | **Total** | **451,719** | **404,252** | [22. Related Party Transactions](index=36&type=section&id=22.%20Related%20Party%20Transactions) During the period, there were advance transactions with Mr. Ye Zhijie, and amounts payable to Mr. Ye Zhijie and Mr. Huang Kaining as related party balances, with key management compensation totaling RMB1,645 thousand [22(a) Transactions with Related Parties](index=36&type=section&id=22%28a%29%20Transactions%20with%20Related%20Parties) For the six months ended June 30, 2025, the Group received advances of RMB8,686 thousand from Mr. Ye Zhijie, compared to repayments of RMB1,553 thousand in the prior period Transactions with Related Parties (For the Six Months Ended June 30) | Related Party | 2025 Advances from/(Repayments to) (RMB thousand) | 2024 Advances from/(Repayments to) (RMB thousand) | | :--- | :--- | :--- | | Mr. Ye Zhijie | 8,686 | (1,553) | [22(b) Balances with Related Parties](index=36&type=section&id=22%28b%29%20Balances%20with%20Related%20Parties) As of June 30, 2025, amounts payable to Mr. Ye Zhijie were RMB9,233 thousand and to Mr. Huang Kaining were RMB7,372 thousand, both being unsecured, interest-free, and repayable on demand related party advances Balances with Related Parties (As of June 30) | Related Party | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Mr. Ye Zhijie | 9,233 | 547 | | Mr. Huang Kaining | 7,372 | 7,372 | | **Total** | **16,605** | **7,919** | - Amounts due to related parties are **unsecured, interest-free, and repayable on demand advances**, used to supplement working capital needs[105](index=105&type=chunk) [22(c) Key Management Compensation](index=36&type=section&id=22%28c%29%20Key%20Management%20Compensation) For the six months ended June 30, 2025, key management compensation amounted to RMB1,645 thousand, a decrease from the prior period Key Management Compensation (For the Six Months Ended June 30) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Key Management Compensation | 1,645 | 2,144 | Corporate Governance and Other Information [Compliance with Corporate Governance Code](index=37&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Board is committed to establishing sound corporate governance principles and confirms the Company's compliance with the principles and provisions of the Corporate Governance Code during the period - The Board is committed to establishing **sound corporate governance principles and practices**[107](index=107&type=chunk) - The Company has **complied with the principles and provisions of the Corporate Governance Code**[108](index=108&type=chunk) [Standard Securities Dealing Code for Directors and Chief Executive](index=37&type=section&id=Standard%20Securities%20Dealing%20Code%20for%20Directors%20and%20Chief%20Executive) The Company has adopted a code of conduct for directors' securities transactions no less exacting than the Model Code and confirms that directors have complied with it during the period, also adopting the Model Code as the standard for relevant employees' dealings in company securities - The Company has adopted a **code of conduct for directors' securities transactions no less exacting than the Model Code**[109](index=109&type=chunk) - Directors confirm **compliance with the Model Code and relevant codes of conduct**[109](index=109&type=chunk) [Directors' and Chief Executive's Interests in Shares of the Company and its Associated Corporations](index=38&type=section&id=Directors%27%20and%20Chief%20Executive%27s%20Interests%20in%20Shares%20of%20the%20Company%20and%20its%20Associated%20Corporations) As of June 30, 2025, Mr. Ye Zhijie held 36.73% of shares through controlled corporations, Mr. Huang Wengui held 16.25% through controlled corporations, and Mr. Lai Quanshui, Mr. Qiu Limiao, and Mr. Ye Dan held small beneficial interests, with no other disclosable interests or short positions during the period Directors' Interests in Shares of the Company (As of June 30) | Director | Nature of Interest | Number of Shares Interested | Approximate Percentage of the Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Ye Zhijie | Interest in controlled corporation | 274,706,100 (L) | 36.73% | | Mr. Huang Wengui | Interest in controlled corporation | 121,568,700 (L) | 16.25% | | Mr. Lai Quanshui | Beneficial interest | 10,000,000 (L) | 1.34% | | Mr. Qiu Limiao | Beneficial interest | 56,000 (L) | 0.01% | | Mr. Ye Dan | Beneficial interest | 50,000 (L) | 0.01% | - Mr. Ye Zhijie is the **sole shareholder of Zhixin Investment Holdings Limited**, and Mr. Huang Wengui is the **sole shareholder of Yaohao Holdings Limited**[113](index=113&type=chunk) [Major Shareholders' Interests in Shares and Underlying Shares of the Company](index=39&type=section&id=Major%20Shareholders%27%20Interests%20in%20Shares%20and%20Underlying%20Shares%20of%20the%20Company) As of June 30, 2025, Zhixin Investment Holdings Limited held 36.73% of shares, and Yaohao Holdings Limited held 16.25% of shares, with the spouses of Mr. Ye Zhijie and Mr. Huang Wengui deemed to have the same share interests due to spousal interests, and Huatai Securities Co., Ltd. and its subsidiaries collectively held 5.04% of shares Major Shareholders' Long Positions in Shares of the Company (As of June 30) | Name/Designation | Nature of Interest | Number of Shares Interested | Approximate Percentage of the Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Zhixin Investment Holdings Limited | Beneficial interest | 274,706,100 | 36.73% | | Ms. Hong Wei | Spouse's interest | 274,706,100 | 36.73% | | Yaohao Holdings Limited | Beneficial interest | 121,568,700 | 16.25% | | Ms. Lin Lingling | Spouse's interest | 121,568,700 | 16.25% | | Huatai Securities Co., Ltd. | Interest in controlled corporation | 37,718,000 | 5.04% | | Huatai International Financial Holdings Company Limited | Interest in controlled corporation | 37,718,000 | 5.04% | | Huatai Financial Holdings (Hong Kong) Limited | Beneficial interest | 37,718,000 | 5.04% | - Ms. Hong Wei is the spouse of Mr. Ye Zhijie, and Ms. Lin Lingling is the spouse of Mr. Huang Wengui, and are **deemed to have interests under the Securities and Futures Ordinance**[117](index=117&type=chunk) - Huatai Securities Co., Ltd. holds shares through its **wholly-owned subsidiaries Huatai International Financial Holdings Company Limited and Huatai Financial Holdings (Hong Kong) Limited**[117](index=117&type=chunk) [Changes in Directors and Competing Business Interests](index=40&type=section&id=Changes%20in%20Directors%20and%20Competing%20Business%20Interests) There were no changes in directors during the period, and no director had any interest in any business that competes or is likely to compete, directly or indirectly, with the Group's business - There were **no changes in directors** during the period[118](index=118&type=chunk) - No director had any interest in any business that **competes with the Group's business**[119](index=119&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=40&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Listed%20Securities) During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - Neither the Company nor its subsidiaries **purchased, sold, or redeemed any of the Company's listed securities** during the period[120](index=120&type=chunk) [Review of Interim Financial Statements and Dividends](index=40&type=section&id=Review%20of%20Interim%20Financial%20Statements%20and%20Dividends) The Company's interim financial statements have been reviewed by the Review Committee, and the Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The interim financial statements have been **reviewed by the Review Committee**[121](index=121&type=chunk) - The Board does not recommend the **payment of an interim dividend** for the period[122](index=122&type=chunk) Glossary [Definitions of Terms in the Report](index=41&type=section&id=Definitions%20of%20Terms%20in%20the%20Report) This section provides definitions for key terms and abbreviations used in this interim report to ensure a clear understanding of its content - This section defines key terms used in the report, such as **"Review Committee," "Board," "Company," and "Group"**[123](index=123&type=chunk)

Core Viewpoint - The company, Zhi Xin Group Holdings (02187.HK), has announced a board meeting scheduled for August 29, 2025, to approve its interim results for the six months ending June 30, 2025, and to consider the distribution of an interim dividend, if any [1] Summary by Relevant Categories - **Company Announcement** - Zhi Xin Group Holdings will hold a board meeting on August 29, 2025 [1] - The meeting will focus on approving the interim results for the six months ending June 30, 2025 [1] - The board will also consider the potential distribution of an interim dividend [1]

智欣集團控股有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此宣佈，董 事會會議將於二零二五年八月二十九日（星期五）舉行，以（其中包括）(i)考慮及 批准本公司及其附屬公司截至二零二五年六月三十日止六個月之中期業績及 其刊發；及(ii)考慮建議派付中期股息（如有）。 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 Zhixin Group Holding Limited 智欣集團控股有限公司 （股份代號：2187） （於開曼群島註冊成立的有限公司） 董事會會議通告 承董事會命 智欣集團控股有限公司 主席兼執行董事 葉志杰 香港，二零二五年八月八日 於本公告日期，董事會成員包括執行董事葉志杰先生、黃文桂先生、賴泉水先生、邱禮苗先 生、葉丹先生及黃楷寧先生；及獨立非執行董事王端秀女士、蔡慧農先生及蔣勤儉先生。 ...

Core Viewpoint - The company anticipates a net loss of approximately RMB 50 million for the six months ending June 30, 2025, compared to a net profit of about RMB 1.2 million in the same period of 2024, primarily due to losses in its ready-mixed concrete and precast concrete components business [1] Financial Performance - The expected net loss of RMB 50 million contrasts sharply with the previous year's profit of RMB 1.2 million, indicating a significant decline in financial performance [1] - The overall loss is partially offset by profits from the recovery of iron ore tailings and the manufacturing of eco-bricks during the same period [1]

（股份代號：2187） 盈利警告 本公告根據香港聯合交易所有限公司證券上市規則（「上市規則」）第13.09(2)(a) 條及香港法例第571章證券及期貨條例第XIVA部項下內幕消息條文（定義見上 市規則）而作出。 智欣集團控股有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此知會本公 司股東及潛在投資者，根據對本公司及其附屬公司（統稱「本集團」）未經審核 綜合管理賬目所作之初步審閱以及本集團目前可得資料，預期本集團於截至 二零二五年六月三十日止六個月（「有關期間」）將錄得淨虧損約人民幣50.0百萬 元，而二零二四年同期的純利則約為人民幣1.2百萬元。該虧損主要歸因於本 集團經營預拌混凝土及預製混凝土構件業務錄得虧損淨額。總體虧損程度被 本集團於有關期間回收鐵礦石尾礦及環保磚塊製造業務之所得純利部分抵銷。 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 Zhixin Group Holding Limited 智欣集團控股有限公司 （於開曼群島 ...

Financial Performance - The company recorded revenue of approximately RMB 580.4 million for the fiscal year 2024, an increase of about RMB 67.6 million or approximately 13.2% compared to RMB 512.8 million in fiscal year 2023[9]. - Gross profit decreased from approximately RMB 104.2 million in fiscal year 2023 to approximately RMB 54.4 million in fiscal year 2024, a decline of about 47.8%[10]. - The net loss for fiscal year 2024 was approximately RMB 75.2 million, compared to a net profit of approximately RMB 10.1 million in fiscal year 2023[10]. - Revenue from ready-mixed concrete sales increased from approximately RMB 259.0 million in fiscal year 2023 to approximately RMB 302.9 million in fiscal year 2024, an increase of about 17.0%[17]. - Revenue from precast concrete components sales decreased significantly from approximately RMB 85.4 million in fiscal year 2023 to approximately RMB 14.1 million in fiscal year 2024, a drop of about 83.5%[18]. - Revenue from iron ore tailings recovery and eco-brick sales increased from approximately RMB 168.4 million in fiscal year 2023 to approximately RMB 263.4 million in fiscal year 2024, an increase of about 56.4%[19]. - Sales cost increased by approximately RMB 117.4 million or about 28.7% from RMB 408.6 million in FY2023 to RMB 526.0 million in FY2024, primarily due to increased revenue from iron ore tailings recovery and eco-bricks[20]. - Gross profit decreased by approximately RMB 49.8 million or about 47.8% from RMB 104.2 million in FY2023 to RMB 54.4 million in FY2024, with overall gross margin dropping from approximately 20.3% to 13.9%[21]. - The gross profit from precast concrete components recorded a loss of approximately RMB 24.8 million in FY2024, compared to a profit of RMB 3.9 million in FY2023[23]. - Other income increased by approximately RMB 6.0 million or about 121.4% from RMB 4.9 million in FY2023 to RMB 10.9 million in FY2024, mainly due to increased government subsidies[25]. - Net other losses increased by approximately RMB 8.0 million or 22,269.4% from RMB 36,000 in FY2023 to RMB 8.1 million in FY2024, primarily due to losses from the sale of properties, plants, and equipment[26]. - Administrative expenses increased by approximately RMB 28.4 million or about 52.4% from RMB 54.3 million in FY2023 to RMB 82.7 million in FY2024, mainly due to production losses in precast concrete components and increased employee costs[28]. Production and Operations - The company has temporarily halted the production of precast concrete components in fiscal year 2024 to mitigate further losses[10]. - The company is optimistic about the prospects of iron ore tailings comprehensive utilization, with over 100 million tons of tailings available for processing in Hainan Province[12]. - The competitive landscape for ready-mixed concrete and precast concrete components remains intense, particularly against state-owned enterprises, impacting profit margins[10]. - The company plans to expand its precast concrete component production capacity, with an allocation of HKD 24.5 million, of which HKD 18.0 million has been utilized[44]. - The company anticipates increased competition in the Xiamen precast concrete and precast concrete component market, which may pressure revenue and gross margins[45]. - The company has identified the comprehensive utilization of iron ore tailings in Hainan as a significant future revenue source due to abundant supply and high demand in nearby areas[45]. Shareholder Information - The largest customer accounts for approximately 9.6% of total revenue for the fiscal year 2024, while the top five customers account for about 31.3%[60]. - The company does not recommend any final dividend for the fiscal year 2024, and there is no established dividend policy[50][51]. - As of December 31, 2024, the company's current liabilities net amount was approximately RMB 72.5 million, compared to a net current asset value of approximately RMB 21.1 million as of December 31, 2023[33]. - The debt-to-equity ratio as of December 31, 2024, was approximately 48%, down from 49% as of December 31, 2023[33]. - The company had no significant acquisitions or investments in FY2024[39][40]. - The net proceeds from the share sale amount to approximately HKD 238.7 million, with HKD 231.4 million already utilized as of December 31, 2023[44]. - As of December 31, 2024, the company has distributable reserves of approximately RMB 184.1 million, down from RMB 189.1 million the previous year[57]. - As of December 31, 2024, the company has 748,000,000 shares issued[73]. - Mr. Ye Zhi Jie holds 274,706,100 shares, representing 36.73% of the company's issued share capital[71]. - Mr. Huang Wen Gui owns 121,568,700 shares, accounting for 16.25% of the company's issued share capital[71]. Corporate Governance - The board of directors emphasizes the importance of good corporate governance standards to protect shareholder interests and enhance corporate value[96]. - The company has adopted a code of conduct for directors regarding securities trading, ensuring compliance with established standards[99]. - The board of directors is responsible for strategic planning and ensuring sustainable development, with regular reviews of board composition and contributions[102]. - The company promotes a culture of integrity, accountability, and transparency among its directors and management[95]. - The company has established anti-corruption policies and reporting systems to maintain its corporate culture[95]. - The board believes that its corporate governance practices comply with the relevant codes and will continue to monitor and review these practices[98]. - The company has established a whistleblowing policy to encourage stakeholders to report any suspected fraud or misconduct[145]. - The board has delegated the responsibility for selecting and appointing directors to the nomination committee, which considers various diversity factors[147]. - The company has implemented a formal and transparent process for establishing remuneration policies for directors and senior management[123]. - The remuneration policy for directors and senior management is reviewed based on the company's performance and market data[80]. - The company has engaged an independent internal control consulting firm to review its major business processes and internal control systems for the fiscal year 2024[141]. - The board conducts an annual review of the effectiveness of the risk management and internal control systems[143]. - The company has established four committees: audit committee, remuneration committee, nomination committee, and strategic committee[113]. - The audit committee consists of three independent non-executive directors, with the chairperson possessing appropriate professional qualifications[115]. - The audit committee held two meetings in fiscal year 2024, with full attendance from its members[116]. - The company held one meeting of the Remuneration Committee in fiscal year 2024, with full attendance from all members[121]. - The Nomination Committee also held one meeting in fiscal year 2024, with all members present[126]. - The Strategic Committee is responsible for reviewing the company's expansion into emerging markets and the development of new products[129]. - The company confirmed that there are no significant uncertainties affecting its ability to continue as a going concern[131]. - The company secretary position was transitioned to Mr. Yuan Zhiwei effective August 8, 2024, following the resignation of Mr. Zhong Dezhu[134]. - The company ensures compliance with accounting standards and corporate governance codes as per the responsibilities outlined for the board of directors[131]. - All independent non-executive directors have confirmed their independence in accordance with listing rules[109]. - The board has a clear division of responsibilities between the chairman and the CEO to ensure a balance of power[108]. - The company has no plans for re-election of directors at the upcoming annual general meeting[70]. - In the fiscal year 2024, the company reported a total of 10 executives receiving compensation below RMB 1,000,000, a decrease of 18.18% from 11 in fiscal year 2023[85]. - There were no management or administrative contracts established for the majority of the company's business in fiscal year 2024[86]. - The details of remuneration for directors and the five highest-paid individuals are included in the financial statements[83]. - There are no indemnity provisions for any directors or associated companies during the fiscal year[81]. - There are no significant transactions or contracts involving directors with substantial interests during the fiscal year[78]. - The company has not established any arrangements that would result in directors holding interests in competing businesses during the fiscal year[79]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to environmental protection and sustainable development, implementing green office measures to reduce energy consumption[88]. - The board is responsible for identifying and assessing environmental, social, and governance (ESG) risks, and has formed a dedicated ESG working group to implement related measures[165]. - The ESG report covers the period from January 1, 2024, to December 31, 2024, aligning with the company's fiscal year[164]. - The ESG working group is tasked with collecting and monitoring ESG data, and reporting significant ESG matters to the board[168]. - The company emphasizes stakeholder engagement to understand and respond to their concerns regarding ESG issues[172]. - The company adheres to the "comply or explain" principle in its ESG reporting, ensuring transparency and accountability[170]. - The company has been recognized as a green factory by the Ministry of Industry and Information Technology of China[178]. - The company has established three environmental goals, promoting principles of "recycling," "reuse," "water conservation," and "energy saving" among employees[178]. - In the fiscal year 2024, the company complied with all applicable laws and regulations regarding emissions and waste management, with no significant claims or penalties related to environmental protection[179]. - The company has implemented an ISO 14001 certified environmental management system to reduce greenhouse gas emissions primarily from logistics activities[180]. - The company has established monitoring procedures to ensure water usage remains within reasonable limits, with no issues in obtaining applicable water sources in fiscal year 2024[184][185]. - The company produces minimal non-hazardous industrial waste during production, adhering to national standards for waste management[186]. - The company has installed automatic watering systems and dust-sealing designs in warehouses to minimize dust emissions during the loading process[187]. - The company encourages employees to cultivate water-saving habits and manages wastewater according to national discharge standards[184][185]. - The company has developed policies to minimize the use of natural resources and reduce the environmental impact of its operations[180]. - In fiscal year 2024, the company reported direct emissions (Scope 1) of 4,238 tons of CO2, a decrease of 49% from 8,317 tons in fiscal year 2023[189]. - Indirect emissions (Scope 2) increased to 16,118 tons of CO2 in fiscal year 2024, up 19% from 13,499 tons in fiscal year 2023[189]. - The company achieved a reduction in solid waste to 231 tons in fiscal year 2024, down from 398 tons in fiscal year 2023, representing a 42% decrease[192]. - Water consumption increased to 317 thousand cubic meters in fiscal year 2024, compared to 135 thousand cubic meters in fiscal year 2023, reflecting a 135% increase[192]. - The company aims to maintain current emission control and resource usage levels over the next two years, with plans to set and disclose new reduction targets thereafter[193]. - The company utilized 23,026 thousand kWh of electricity in fiscal year 2024, an increase of 19% from 19,284 thousand kWh in fiscal year 2023[192]. - The company plans to use vehicles that meet EU Stage VI standards for logistics activities to address future stricter emission standards[200]. - The company reported a significant reduction in sulfur dioxide (SOx) emissions to 1.05 tons in fiscal year 2024, down from 30.05 tons in fiscal year 2023, a decrease of 96.5%[189]. - The company is committed to managing suppliers and hiring environmentally friendly suppliers to meet customer expectations for green operations[200]. - The company has implemented a supply chain management plan to diversify its supply chain and monitor supplier financial and operational performance[200].