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].

Financial Performance - For the fiscal year ending December 31, 2024, the company reported total revenue of RMB 580,370,000, an increase of 13.2% compared to RMB 512,770,000 for the fiscal year 2023[3]. - The company's gross profit decreased to RMB 54,378,000, down 47.8% from RMB 104,190,000 in the previous year[3]. - Operating loss for the year was RMB 56,286,000, compared to an operating profit of RMB 30,719,000 in 2023[3]. - The net loss attributable to shareholders was RMB 75,199,000, a significant decline from a profit of RMB 10,078,000 in the prior year[3]. - Total revenue for the year ended December 31, 2024, was RMB 580.37 million, an increase from RMB 512.77 million in the previous year, representing a growth of approximately 13.2%[20]. - The gross profit for the year was RMB 54.38 million, compared to RMB 104.19 million in the previous year, indicating a decline of about 47.8%[20]. - The company reported a net loss of RMB 75.20 million for the year, compared to a profit of RMB 10.08 million in the previous year, reflecting a significant downturn in financial performance[20]. - Total expenses for the year ended December 31, 2024, amounted to RMB 622,564 thousand, an increase of 28.1% from RMB 485,941 thousand in 2023[28]. - The cost of goods sold recognized as an expense for the year ended December 31, 2024, was RMB 368,333,000, an increase from RMB 278,015,000 in 2023[58]. Assets and Liabilities - The company's total assets decreased to RMB 1,132,654,000 from RMB 1,352,247,000, reflecting a reduction of approximately 16.2%[4]. - Current liabilities exceeded current assets by approximately RMB 72,483,000, raising concerns about the company's liquidity[10]. - The total equity attributable to shareholders decreased to RMB 377,949,000 from RMB 453,148,000, a decline of approximately 16.6%[4]. - The company’s total liabilities were RMB 754.71 million, compared to RMB 899.10 million in the previous year, indicating a reduction of approximately 16.1%[23]. - The total bank borrowings as of December 31, 2024, amounted to RMB 360,389,000, down from RMB 435,027,000 in 2023[66]. - The debt-to-equity ratio as of December 31, 2024, was approximately 48%, a slight decrease from 49% on December 31, 2023[89]. Operational Challenges - The company has suspended production in its prefabricated concrete component business, contributing to the overall financial challenges faced[10]. - The group has suspended the production of prefabricated concrete components due to ongoing market stagnation and intense competition[45]. - The company plans to improve operational performance and cash flow by enhancing accounts receivable collection and increasing production capacity in its iron ore tailings recovery business[11]. Expenses and Costs - The company’s administrative expenses totaled RMB 78.10 million for the year, reflecting an increase from RMB 49.18 million in the previous year[20]. - Employee benefits expenses increased to RMB 65,731 thousand, reflecting a rise of 6.9% compared to RMB 61,815 thousand in 2023[28]. - The net financing cost for the year was RMB (18,165) thousand, compared to RMB (16,649) thousand in 2023, indicating an increase of 9.1%[30]. - The income tax expense for the year was RMB 748 thousand, a decrease of 81.2% from RMB 3,992 thousand in 2023[31]. - The impairment provision for property, plant, and equipment was RMB 26,767 thousand, a significant increase from RMB 2,260 thousand in 2023[28]. Revenue Segmentation - The segment performance showed that the ready-mixed concrete division generated revenue of RMB 302.90 million, while the precast concrete components and recycled iron ore segments generated RMB 14.09 million and RMB 263.38 million, respectively[20]. - Revenue from ready-mixed concrete sales rose from approximately RMB 259.0 million in FY2023 to approximately RMB 302.9 million in FY2024, an increase of about 17.0%[73]. - Revenue from precast concrete components decreased significantly from approximately RMB 85.4 million in FY2023 to approximately RMB 14.1 million in FY2024, a decline of about 83.5%[74]. - Revenue from iron ore tailings recovery products and eco-bricks increased from approximately RMB 168.4 million in FY2023 to approximately RMB 263.4 million in FY2024, up by about 56.4%[75]. Future Outlook - The revenue growth rate is projected to be 20.8% annually from 2025 to 2029, compared to 2.2% in 2023[57]. - The average gross profit margin is expected to be 31%, down from 48% in 2023[57]. - The group plans to expand its precast concrete component capacity with an allocation of HKD 24.5 million, expected to be completed by December 2025[98]. Corporate Governance - The group has adhered to the corporate governance code as per the Hong Kong Stock Exchange regulations during the fiscal year 2024[99].

Financial Performance - The company's revenue for the six months ended June 30, 2024, was approximately RMB 244.1 million, an increase of about 5.7% compared to RMB 231.0 million for the same period in 2023[10]. - Gross profit increased by approximately 38.9% to about RMB 45.5 million, with a gross margin of 18.6%, up from 14.2% in the previous year[11]. - The net profit for the period was approximately RMB 1.2 million, a decrease of about 89.0% compared to RMB 10.6 million in the same period last year[10]. - Revenue from ready-mixed concrete sales was RMB 130.0 million, a 16.1% increase from RMB 112.0 million in the previous year[14]. - Revenue from precast concrete components decreased by approximately 76.1% to RMB 10.6 million, down from RMB 44.2 million due to increased price pressure from competitors[15]. - Revenue from iron ore tailings recovery and eco-brick sales increased by approximately 38.4% to RMB 103.5 million, compared to RMB 74.8 million in the previous year[16]. - The overall gross profit increased by approximately RMB 12.7 million or about 38.9% to approximately RMB 45.5 million, with the gross profit margin rising from 14.2% to 18.6%[18]. - The profit for the period was approximately RMB 1.2 million, a decrease from RMB 10.6 million in the previous period[24]. - The company reported a net profit attributable to owners of the company of RMB 1,172 thousand, a decrease from RMB 10,649 thousand in the prior year[37]. - Basic and diluted earnings per share were RMB 0.002, down from RMB 0.014 in the same period last year, indicating lower profitability per share[37]. Operational Efficiency - Operating profit decreased to RMB 9,891 thousand from RMB 22,456 thousand, indicating challenges in operational efficiency[37]. - The company plans to focus on enhancing operational efficiency and exploring new market opportunities to drive future growth[37]. - Selling expenses increased by approximately 45.8% to about RMB 10.5 million, mainly due to increased transportation costs from a significant rise in the sales volume of iron ore tailings recovery products[20]. - Administrative expenses rose by approximately 37.9% to about RMB 29.1 million, attributed to increases in non-direct employee costs and professional fees[21]. - Net financing costs increased by approximately 44.3% to about RMB 10.0 million, mainly due to a reduction in capitalized interest included in construction costs[22]. Assets and Liabilities - As of June 30, 2024, the current assets net value was approximately RMB 4.4 million, down from RMB 21.1 million as of December 31, 2023[25]. - The total assets as of June 30, 2024, were RMB 1,270,647 thousand, down from RMB 1,352,247 thousand at the end of 2023, indicating a reduction in asset base[39]. - Total liabilities decreased to RMB 816,327 thousand from RMB 899,099 thousand, reflecting a reduction in financial obligations[39]. - The total borrowings (excluding factoring loans) as of June 30, 2024, were RMB 384,111,000, compared to RMB 423,157,000 as of December 31, 2023, indicating a reduction in debt levels[58]. - The company’s total liabilities decreased to RMB 416,032,000 as of June 30, 2024, from RMB 435,027,000 as of December 31, 2023, indicating improved financial health[96]. Cash Flow and Liquidity - Net cash flow from operating activities was RMB 53,998 thousand, compared to RMB 40,175 thousand in the previous year, showing improved cash generation[41]. - Cash and cash equivalents at the end of the period increased to RMB 26,212 thousand from RMB 13,327 thousand, showing improved liquidity[41]. - The total cash and cash equivalents as of June 30, 2024, were RMB 26,212,000, slightly up from RMB 26,367,000 as of December 31, 2023[89]. Market Outlook - The company expects continued strong revenue from iron ore tailings recovery and eco-brick business, despite market pressures on ready-mixed and precast concrete components[11]. - The company remains optimistic about the business prospects for iron ore tailings utilization due to sufficient supply in Hainan[11]. - The company expects business momentum to continue in the second half of 2024, driven by abundant supply of iron ore tailings in Hainan Province and strong demand from nearby regions[36]. Corporate Governance - The group has established sound corporate governance principles to protect shareholder interests and enhance corporate value[106]. - The company has complied with the corporate governance code principles and has adopted best practices where applicable as of June 30, 2024[107]. - The group continues to review and monitor its corporate governance practices to ensure compliance with the corporate governance code[107]. Shareholder Information - Major shareholders include Zhixin Investment Holdings Limited with a beneficial interest of 274,706,100 shares, representing 36.73% of the issued share capital[111]. - The total number of issued shares as of June 30, 2024, is 748,000,000[111]. - The company did not declare or propose any dividends for the six months ended June 30, 2024, consistent with the previous year[78]. Risk Management - The financial risk management plan focuses on minimizing potential adverse impacts on financial performance due to market unpredictability[49]. - The group has not used any derivative financial instruments to hedge certain risk exposures during the reporting period[49]. - The group’s credit risk is primarily associated with cash and bank balances, trade receivables, and other receivables[50]. - The group has identified significant adverse changes in business, financial, or economic conditions as key indicators for assessing credit risk[55].