中秋佳节即将来临，北京的张先生9月11日通过百果园小程序为上海的亲友订购了一份广彩非遗联名水果礼盒。他 选择了"送好友"选项，输入了亲友的手机号码。系统立即生成了一份带有祝福语的电子礼品卡，张先生通过微信 分享给了亲友。"以前送水果最担心的是朋友不喜欢或者水果品质有问题，现在有了这个功能，我们双方都安心 了。"张先生表示。 文/北京青年报记者 张鑫 编辑/汪浩舟 北京青年报记者9月11日了解到，张先生体验的是百果园在小程序平台推出"礼品无忧送，不满意随心退"功能。这 项服务打破了传统礼品"送出即终结"的消费模式，让水果礼盒不再只是"面子工程"。消费者在门店购买水果礼品 或微信小程序/APP下单时选择"送好友"系统将触发"礼品无忧送"功能，功能开启后亲友可领取该单售后权利，实 现"礼"与"权"同步送达。 "收到水果礼盒的用户，如果对商品质量有不满，可以直接找我们售后，不用通过赠送者。"百果园相关负责人表 示，顾客购买礼盒选择这一服务后，系统将打印礼品售后无忧卡（该单售后小票），这张卡片会与礼盒一起送到 收礼者手中。需要售后时，持有该卡者可扫二维码进行售后。 ...

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

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年8月31日 狀態: 新提交 致：香港交易及結算所有限公司 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 其他類別 (請註明) | | | 於香港聯交所上市 (註1) | | 否 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | N/A | 說明 | 非上市股份 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 85,448,554 | RMB | | 1 | RMB | | 85,448,554 | | 增加 / 減少 (-) | | | 0 | | | | RMB | | 0 | | 本月底結存 | | | 85,448,554 | RMB | | 1 | RMB | | 85,448,554 | | 2. 股份分類 | 普通股 | 股份類別 H | | | 於香港聯交所上市 ...

Core Viewpoint - Baiguoyuan reported a significant decline in revenue and an increase in net loss for the first half of 2025, indicating challenges in its retail operations and store network optimization efforts [1][2] Group 1: Financial Performance - For the first half of 2025, Baiguoyuan achieved revenue of 4.376 billion yuan, a year-on-year decrease of 21.8%, and a net loss attributable to shareholders of 342 million yuan, with a gross margin dropping to 4.9% [1] - The number of Baiguoyuan stores decreased to 4,386, representing a net reduction of 1,639 stores, or 27% year-on-year [1] Group 2: Operational Strategies - The company is focusing on optimizing its retail store layout to enhance operational efficiency, encouraging franchisees to reassess store locations and close underperforming outlets [1] - In the first half of 2025, the average customer traffic per store increased by 12.6%, and single-store gross profit also saw a modest growth [1] Group 3: Marketing and Product Strategy - Baiguoyuan upgraded its store signage to enhance brand recognition and has opened seven stores in Indonesia, laying the groundwork for future international expansion [2] - The company introduced eight seasonal products, which significantly boosted customer traffic and sales, with store traffic for these products increasing by approximately 95% and total sales rising by about 63.8% compared to the same period in 2024 [2] Group 4: Online and Offline Integration - As of the end of the reporting period, Baiguoyuan had approximately 30,000 WeChat groups with a total of about 18 million followers, generating over 58 million yuan in sales through WeChat group purchases, a year-on-year increase of 12.9% [2] - The cumulative number of users utilizing the WeChat mini-program reached 78.58 million, reflecting a growth of approximately 13.24%, while sales through Douyin live streaming channels reached 53.49 million yuan, up about 29.32% year-on-year [2]

Core Viewpoint - The recent performance report of Baiguoyuan (02411.HK) reveals significant financial struggles, with a notable decline in revenue and profitability, indicating a challenging market environment and shifting consumer behavior [2][3][7]. Financial Performance - In the first half of 2025, Baiguoyuan reported total revenue of 4.376 billion RMB, a year-on-year decrease of 21.8% [3][4]. - Gross profit plummeted from 619 million RMB in the same period last year to 216 million RMB, marking a 65.1% decline, which resulted in a gross margin drop from 11.1% to 4.9% [3][4]. - The company recorded a net loss attributable to shareholders of 342 million RMB, compared to a profit of 88.5 million RMB in the previous year, reflecting a staggering 486.5% decline [4][5]. Store Operations - As of June 30, 2025, Baiguoyuan closed over 700 stores, reducing the total number of stores to 4,386 from 5,127 at the end of 2024 [5][6]. - The decline in store count is part of a strategy to optimize store layout and improve operational efficiency amid declining consumer spending [5][7]. Consumer Behavior - Despite an increase in total membership to 93.041 million, the number of paying members fell by 32.9% to 719,000, indicating a shift in consumer engagement [5][7]. - Retail sales also decreased by 15.4%, from 6.748 billion RMB to 5.71 billion RMB, reflecting a cautious consumer sentiment [5][7]. Strategic Shift - Baiguoyuan is undergoing a strategic transformation, moving from a high-end positioning to a focus on high-quality and cost-effective fruit products [7][10]. - The company has implemented promotional activities to boost customer traffic and purchase frequency, while also adjusting its franchise policies and supply chain operations [7][10]. Brand Perception - Recent controversial statements by the chairman regarding consumer education have negatively impacted brand perception, leading to potential loss of paying members [8][10]. - The company's previous high-end branding strategy is now challenged by a market that increasingly favors value for money, raising concerns about brand trust and consumer loyalty [10][12]. Quality Concerns - Baiguoyuan has faced multiple quality issues, undermining consumer trust in its products, which could further complicate its efforts to reposition the brand [11][12].

Core Insights - The company reported a net loss of 342 million yuan in the first half of 2025, with a continuous reduction in store numbers and negative cash flow [1][3][8] - The chairman's statement about "educating consumers" has become awkward in light of the company's financial struggles [2][8] Financial Performance - Total revenue decreased by 21.8% year-on-year to 4.376 billion yuan, while retail gross merchandise volume (GMV) fell from 6.748 billion yuan to 5.711 billion yuan [3] - Gross profit plummeted by 65.1%, from 619 million yuan to 216 million yuan, leading to a decline in gross margin from 11.1% to 4.9% [3] - The company recorded a net loss attributable to shareholders of 342 million yuan, compared to a profit of 88.51 million yuan in the same period last year [3] - Basic loss per share was 23.43 cents, a stark contrast to earnings of 5.83 cents per share in the previous year [3] Cash Flow and Financial Health - Operating cash flow shifted from a net inflow of 278 million yuan to a net outflow of 123 million yuan, indicating issues with the company's cash generation ability [3] - The capital-to-debt ratio increased from 89.3% at the end of 2024 to 103.5%, reflecting heightened debt pressure [3] Operational Efficiency - Inventory turnover days increased from 10.9 to 12.3, and accounts receivable turnover days rose from 34.2 to 35.8 [4] - Accounts payable turnover days significantly increased from 14.1 to 21.5, suggesting cash flow pressure [4] - Bad debt risk surged, with financial asset impairment losses rising from 8.9 million yuan to 39.9 million yuan, an increase of 348% [4] Membership and Sales Structure - Total membership exceeded 93 million, with online retail sales through platforms like Douyin growing by 29.32%, but core paid membership decreased by 32.9% to approximately 719,000 [4][7] - The company heavily relies on fruit sales (98.5% of total revenue) and franchise stores (70.3% of total revenue), indicating concentrated risk [4][7] Strategic Challenges - The company's previous business model, which thrived on high pricing, is now misaligned with market trends favoring cost-effectiveness [7] - The attempt to reinforce high-end positioning through the "Golden Decade" strategy did not resonate with the market, leading to a 25.5% increase in sales expenses [7] - The company closed 1,639 retail stores in the year ending June 30, 2025, a reduction of 27.0%, directly impacting core revenue [7] Recovery Efforts - The company is investing in its own brand development, increasing the number of brands from 42 to 51, with related sales accounting for 14.9% of total retail sales [8] - The board has decided not to distribute interim dividends to preserve cash amid losses [8] - The management's disconnect between consumer education rhetoric and market realities is evident, with significant losses and membership declines highlighting the need for a strategic pivot [8]

[Financial Summary](index=1&type=section&id=Financial%20Summary) The company reported a net loss attributable to owners and a loss per share, driven by significant declines in revenue and gross profit. [Key Financial Data](index=1&type=section&id=Key%20Financial%20Data) Revenue decreased 21.8% year-on-year, gross profit dropped 65.1%, resulting in a net loss of RMB 342 million and a loss per share of RMB 23.43 cents. | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 4,375,873 | 5,594,124 | (21.8) | | Gross Profit | 215,551 | 618,508 | (65.1) | | (Loss)/Profit Before Income Tax | (352,966) | 99,263 | (455.6) | | (Loss)/Profit Attributable to Owners of the Company | (342,053) | 88,506 | (486.5) | | Basic and Diluted (Loss)/Earnings Per Share (RMB cents per share) | (23.43) | 5.83 | (501.9) | - For the six months ended June 30, 2025, revenue from fruit and other food sales was **RMB 4,308.3 million**, accounting for approximately **98.5%** of total revenue[3](index=3&type=chunk) - For the six months ended June 30, 2025, total revenue from product sales to franchise stores was **RMB 3,076.9 million**, accounting for approximately **70.3%** of total revenue[3](index=3&type=chunk) [Operating Summary](index=2&type=section&id=Operating%20Summary) Total stores decreased by 27.2% to 4,386, and retail sales declined, while membership grew and private label brands expanded. Total Number of Stores as of June 30 | Store Type | 2025 | 2024 | | :--- | :--- | :--- | | Franchise Stores | 4,375 | 6,011 | | Self-operated Stores | 11 | 14 | | **Total** | **4,386** | **6,025** | Key Operating Data for the Six Months Ended June 30 | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Total Retail Sales (RMB '000) | 5,710,837 | 6,748,479 | | Overseas Direct Sales (RMB '000) | 113,341 | 141,027 | | Number of Members ('000) | 93,041 | 84,741 | | Number of Private Label Brands | 51 | 42 | [Performance Review](index=3&type=section&id=Performance%20Review) The company's performance review covers market trends, strategic adjustments, and operational highlights amidst a challenging economic environment. [Market Overview](index=3&type=section&id=Market%20Overview) Fresh fruit CPI rose 2.7% in H1 2025, indicating health value recognition, as the market shifted towards value and service, prompting retail and supply chain transformation. - In H1 2025, the national fresh fruit Consumer Price Index (CPI) increased by **2.7%** year-on-year compared to the same period in 2024, significantly higher than the **0.1%** decrease in the overall CPI during the same period[8](index=8&type=chunk) - In H1 2025, domestic fruit exports reached **USD 3.76 billion**, a year-on-year increase of approximately **6.2%** compared to the same period in 2024, while fruit imports were approximately **USD 10.74 billion**, a year-on-year decrease of approximately **5.3%**[9](index=9&type=chunk) [Company Strategy and Operations Review](index=4&type=section&id=Company%20Strategy%20and%20Operations%20Review) The company pursued its "high-quality and high-value-for-money" strategy, focusing on promotions, product optimization, and supply chain expansion, despite a revenue decline and net loss. - The company deepened its "high-quality and high-value-for-money fruit expert and leader" strategy, enhancing customer traffic and purchase frequency through promotional activities like "Good Fruit Gratitude" and "Daily Surprises"[10](index=10&type=chunk) - The Group's revenue decreased by approximately **21.8%** from **RMB 5,594.1 million** for the six months ended June 30, 2024, to **RMB 4,375.9 million** for the six months ended June 30, 2025[11](index=11&type=chunk) - The Group's gross profit decreased by approximately **65.1%** from **RMB 618.5 million** for the six months ended June 30, 2024, to **RMB 215.6 million** for the six months ended June 30, 2025[11](index=11&type=chunk) - For the six months ended June 30, 2025, the Group recorded a net loss attributable to owners of the company of **RMB 342.1 million**, compared to a profit of **RMB 88.5 million** in the same period of 2024[11](index=11&type=chunk) [Business Overview](index=5&type=section&id=Business%20Overview) This section provides a detailed overview of the company's retail and 2B business segments, including strategic initiatives, operational performance, and brand building efforts. [Retail Business Group](index=5&type=section&id=Retail%20Business%20Group) The retail business group optimized its offline network, upgraded operations, and expanded online channels, reducing store count but enhancing brand recognition and sales. [Offline Store Network Development](index=5&type=section&id=Offline%20Store%20Network%20Development) The offline store network reduced by 1,639 stores to 4,386 across 170+ cities in China by June 30, 2025, due to proactive optimization. Total Number of Franchise and Self-operated Stores as of June 30 | Store Type | 2025 | % | 2024 | % | | :--- | :--- | :--- | :--- | :--- | | Franchise stores managed by the Group | 3,570 | 81.4 | 4,707 | 78.1 | | Other franchise stores | 805 | 18.3 | 1,304 | 21.7 | | Subtotal (Franchise stores) | 4,375 | 99.7 | 6,011 | 99.8 | | Self-operated stores | 11 | 0.3 | 14 | 0.2 | | **Total** | **4,386** | **100.0** | **6,025** | **100.0** | - As of June 30, 2025, the Group's retail stores decreased by **1,639**, or approximately **27.0%**, from **6,025** as of June 30, 2024, to **4,386**[14](index=14&type=chunk) [Operational Strategy and Brand Building](index=6&type=section&id=Operational%20Strategy%20and%20Brand%20Building) The company upgraded store facades, expanded internationally, created themed stores, and optimized product offerings to enhance brand experience and drive sales. - As of June 30, 2025, the company has successfully established a regional market presence by opening **seven stores** in Indonesia[17](index=17&type=chunk) - Successfully launched eight "seasonal products with extreme value-for-money" such as Pa Pa Citrus, blueberries, and Feizixiao lychees, leading to an approximate **95.0%** year-on-year increase in store traffic and approximately **63.8%** year-on-year increase in total sales compared to the same period in 2024[18](index=18&type=chunk) [Online Channels and Membership System](index=7&type=section&id=Online%20Channels%20and%20Membership%20System) Online orders comprised 24.7% of total, with Meituan as a key contributor, and social commerce sales grew, despite a 32.9% decrease in paid members. - Orders placed through self-operated APP and mini-programs, Meituan, and Ele.me online channels accounted for approximately **24.7%** of the Group's total orders, with consumers placing orders through Meituan accounting for approximately **52.9%**[19](index=19&type=chunk) - For the six months ended June 30, 2025, sales from WeChat community group buying exceeded **RMB 58.0 million**, a year-on-year increase of approximately **12.9%** compared to the same period in 2024[19](index=19&type=chunk) - For the six months ended June 30, 2025, the total number of customers who purchased the Group's fruits and fruit products through Douyin live stream channels was approximately **1.87 million**, a year-on-year increase of approximately **64.47%** compared to the same period in 2024, with total retail sales of **RMB 53.49 million**, a year-on-year increase of approximately **29.32%**[20](index=20&type=chunk) - Gift sales as a percentage of Pagoda store retail sales increased from **12.8%** for the six months ended June 30, 2024, to approximately **14.8%** for the six months ended June 30, 2025[21](index=21&type=chunk) - As of June 30, 2025, the number of paid members decreased to approximately **719,000**, a year-on-year decrease of approximately **32.9%** compared to the same period in 2024[22](index=22&type=chunk) [2B Business Group](index=8&type=section&id=2B%20Business%20Group) H1 2025 saw 2B direct sales decrease by 1.7% to RMB 700.5 million, while domestic 2B sales grew 2.7%, and Shenzhen Banguo Technology achieved RMB 1.15 billion in GMV. - The Group's sales revenue from direct sales of fruits and other food decreased by approximately **1.7%** from **RMB 712.8 million** for the six months ended June 30, 2024, to **RMB 700.5 million** for the six months ended June 30, 2025[23](index=23&type=chunk) - Overseas direct sales of fruits decreased by approximately **19.6%** year-on-year compared to the same period in 2024, while total sales to domestic 2B customers increased by approximately **2.7%** year-on-year[23](index=23&type=chunk) - For the six months ended June 30, 2025, Shenzhen Banguo Technology Co., Ltd. achieved a Gross Merchandise Volume (GMV) of approximately **RMB 1.15 billion** and established **seven central warehouses** and **428 city warehouses**[23](index=23&type=chunk) [Category Brand Building](index=9&type=section&id=Category%20Brand%20Building) The company pursued a "high-quality and high-value-for-money" strategy, building differentiated fruit brands, with signature and A-grade fruits comprising 64.5% of retail sales and 51 private labels launched. - For the six months ended June 30, 2025, total sales of signature and A-grade fruits accounted for approximately **64.5%** of Pagoda store retail sales[25](index=25&type=chunk) - As of June 30, 2025, the company has successfully launched a total of **51 signature fruit private label brands**, and the total retail sales of these signature fruit private label brands accounted for approximately **14.9%** of Pagoda store retail sales for the six months ended June 30, 2025[25](index=25&type=chunk) [Other Business Updates and Outlook](index=9&type=section&id=Other%20Business%20Updates%20and%20Outlook) This section details the company's digital system upgrades and outlines its strategic vision for future growth across retail, 2B, and category brand development. [Digital System Upgrade](index=9&type=section&id=Digital%20System%20Upgrade) H1 2025 saw the company upgrade its gift card mini-program, establishing digital gifting capabilities and introducing a "worry-free gift after-sales card" to enhance customer experience. - In H1 2025, the company upgraded its gift card mini-program, establishing digital gifting capabilities and launching a "worry-free gift after-sales card"[27](index=27&type=chunk) [Strategic Outlook](index=10&type=section&id=Strategic%20Outlook) The company views H1 as a strategic transformation, continuing its "high-quality and high-value-for-money" strategy, focusing on retail optimization, 2B expansion, and category brand building. - In retail business, the company will iterate selection standards, strengthen freshness management, enhance quality control, and upgrade its scientific pricing system using accumulated data[28](index=28&type=chunk) - In 2B business, the company will continue to expand more categories and domestic and international channels, develop new fruit gift boxes, strengthen supply chain procurement capabilities, and firmly execute the "global sourcing, global selling" strategy[29](index=29&type=chunk) - In category brand building, the company will deepen cooperation with suppliers, introduce advanced agricultural technologies and seeds, jointly build competitive category brands, and focus on product differentiation and food safety[29](index=29&type=chunk) [Financial Performance Analysis](index=11&type=section&id=Financial%20Performance%20Analysis) This section provides a detailed analysis of the company's financial results, including income statement, revenue breakdown, cost and expense analysis, and non-HKFRS measures. [Consolidated Income Statement Overview](index=11&type=section&id=Consolidated%20Income%20Statement%20Overview) Revenue decreased 21.8% to RMB 4,375.9 million, gross profit fell 65.1% to RMB 215.6 million, resulting in an operating loss and a net loss of RMB 353.3 million for the period. Condensed Consolidated Interim Statement of Profit or Loss (For the six months ended June 30) | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue | 4,375,873 | 5,594,124 | | Cost of Sales | (4,160,322) | (4,975,616) | | Gross Profit | 215,551 | 618,508 | | Operating (Loss)/Profit | (319,856) | 127,920 | | (Loss)/Profit Before Income Tax | (352,966) | 99,263 | | (Loss)/Profit for the Period | (353,251) | 83,955 | | (Loss)/Profit Attributable to Owners of the Company | (342,053) | 88,506 | | Basic and Diluted (Loss)/Earnings Per Share (RMB cents per share) | (23.43) | 5.83 | [Revenue Analysis](index=12&type=section&id=Revenue%20Analysis) Total revenue decreased 21.8% year-on-year, primarily due to declining fruit and food sales, reduced franchise store revenue, and lower overseas direct sales, partially offset by domestic 2B growth. [Revenue by Operating Segment](index=12&type=section&id=Revenue%20by%20Operating%20Segment) Total revenue decreased 21.8% to RMB 4,375.9 million, with fruit and food sales comprising 98.5%, while royalty, franchise, membership, and other income streams all declined. Revenue by Operating Segment for the Six Months Ended June 30 | Operating Segment | 2025 (RMB '000) | % | 2024 (RMB '000) | % | | :--- | :--- | :--- | :--- | :--- | | Fruit and other food sales | 4,308,322 | 98.5 | 5,435,726 | 97.2 | | Royalty and franchise income | 8,575 | 0.2 | 67,157 | 1.2 | | Membership fee income | 21,687 | 0.5 | 38,353 | 0.7 | | Others | 37,289 | 0.8 | 52,888 | 0.9 | | **Total** | **4,375,873** | **100.0** | **5,594,124** | **100.0** | - The Group's total revenue decreased by approximately **21.8%** from **RMB 5,594.1 million** for the six months ended June 30, 2024, to **RMB 4,375.9 million** for the six months ended June 30, 2025[34](index=34&type=chunk) [Revenue from Fruit and Other Food Sales by Distribution Channel](index=13&type=section&id=Revenue%20from%20Fruit%20and%20Other%20Food%20Sales%20by%20Distribution%20Channel) Fruit and food sales revenue decreased, mainly due to a 23.3% drop in franchise store income to RMB 3,076.9 million, alongside declines in direct sales and online channel revenue. Revenue from Fruit and Other Food Sales by Distribution Channel for the Six Months Ended June 30 | Distribution Channel | 2025 (RMB '000) | % | 2024 (RMB '000) | % | | :--- | :--- | :--- | :--- | :--- | | Franchise stores | 3,076,920 | 71.4 | 4,011,787 | 73.8 | | Self-operated stores | 14,772 | 0.3 | 21,218 | 0.4 | | Regional agents | 479,212 | 11.1 | 627,807 | 11.5 | | Direct sales | 700,473 | 16.3 | 712,778 | 13.1 | | Online channels | 36,945 | 0.9 | 62,136 | 1.2 | | **Total** | **4,308,322** | **100.0** | **5,435,726** | **100.0** | - The decrease in revenue from franchise stores was primarily due to weak domestic consumption and a reduction in the number of franchise stores[37](index=37&type=chunk) - The decrease in direct sales revenue was mainly due to a reduction in the Group's 2B business in overseas markets, as export restrictions were imposed on certain domestic fruits in overseas markets[37](index=37&type=chunk) [Revenue by Geographical Market](index=32&type=section&id=Revenue%20by%20Geographical%20Market) Mainland China revenue decreased 21.9% to RMB 4,262.5 million, Indonesia's revenue fell 40.7%, Singapore's grew 33.5%, and Hong Kong and other countries' revenue declined 23.6%. Revenue by Geographical Market for the Six Months Ended June 30 | Region | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Mainland China | 4,262,532 | 5,453,097 | | Indonesia | 40,817 | 68,815 | | Singapore | 40,567 | 30,372 | | Hong Kong and other countries | 31,957 | 41,840 | | **Total** | **4,375,873** | **5,594,124** | [Cost and Expense Analysis](index=13&type=section&id=Cost%20and%20Expense%20Analysis) Sales cost decreased 16.4%, but gross profit fell 65.1% to a 4.9% margin due to product optimization, while other income declined and management expenses rose from share-based payments and severance. [Cost of Sales and Gross Profit](index=13&type=section&id=Cost%20of%20Sales%20and%20Gross%20Profit) Cost of sales decreased 16.4% to RMB 4,160.3 million, while gross profit fell 65.1% to RMB 215.6 million, and gross margin dropped to 4.9% due to product optimization. - Cost of sales decreased by approximately **16.4%** from **RMB 4,975.6 million** for the six months ended June 30, 2024, to **RMB 4,160.3 million** for the six months ended June 30, 2025[38](index=38&type=chunk) - The Group's gross profit decreased by approximately **65.1%** from **RMB 618.5 million** for the six months ended June 30, 2024, to **RMB 215.6 million** for the six months ended June 30, 2025[39](index=39&type=chunk) - The Group's gross profit margin decreased from **11.1%** for the six months ended June 30, 2024, to **4.9%** for the six months ended June 30, 2025[39](index=39&type=chunk) [Other Income and Gains](index=14&type=section&id=Other%20Income%20and%20Gains) Other income decreased 36.4% to RMB 17.4 million due to reduced government subsidies, and net other gains were RMB 7.0 million, impacted by joint venture investment losses. - The Group's other income decreased by approximately **36.4%** from **RMB 27.4 million** for the six months ended June 30, 2024, to **RMB 17.4 million** for the six months ended June 30, 2025, primarily due to a decrease in government grants[40](index=40&type=chunk) - The Group recorded net other gains of **RMB 7.0 million** for the six months ended June 30, 2025, mainly due to losses from the dilution of investment in Nanjing Golden Manor Agricultural Products Co., Ltd., a joint venture[41](index=41&type=chunk) [Selling and Administrative Expenses](index=15&type=section&id=Selling%20and%20Administrative%20Expenses) Selling expenses decreased 13.3% to RMB 257.2 million due to reduced personnel, while administrative expenses rose 28.2% to RMB 216.2 million, driven by share-based payments and severance costs. - The Group's selling expenses decreased by approximately **13.3%** from **RMB 296.6 million** for the six months ended June 30, 2024, to **RMB 257.2 million** for the six months ended June 30, 2025, primarily due to a reduction in sales personnel[42](index=42&type=chunk) - The Group's administrative expenses increased by approximately **28.2%** from **RMB 168.7 million** for the six months ended June 30, 2024, to **RMB 216.2 million** for the six months ended June 30, 2025[43](index=43&type=chunk) - The increase in administrative expenses was mainly due to **RMB 17.7 million** in share-based payment expenses from the share award scheme and **RMB 24.0 million** in severance compensation from large-scale layoffs[43](index=43&type=chunk) [Impairment Losses on Financial Assets and R&D Expenses](index=15&type=section&id=Impairment%20Losses%20on%20Financial%20Assets%20and%20R%26D%20Expenses) Net impairment losses on financial assets increased to RMB 39.9 million due to franchise store closures, while R&D expenses decreased 29.9% to RMB 46.5 million from reduced personnel. - Net impairment losses on financial assets increased from **RMB 8.9 million** in the same period of 2024 to **RMB 39.9 million** in the same period of 2025, primarily due to extended aging caused by the closure of franchise stores[44](index=44&type=chunk) - The Group's R&D expenses decreased by approximately **29.9%** from **RMB 66.3 million** for the six months ended June 30, 2024, to **RMB 46.5 million** for the six months ended June 30, 2025, primarily due to a reduction in R&D personnel[45](index=45&type=chunk) [Finance Costs and Share of Profits/Losses of Associates](index=16&type=section&id=Finance%20Costs%20and%20Share%20of%20Profits%2FLosses%20of%20Associates) Finance income decreased 57.1% to RMB 12.0 million, finance costs decreased 6.4% to RMB 49.2 million, and share of profits from associates and joint ventures turned profitable at RMB 4.1 million. - Finance income decreased by approximately **57.1%** from **RMB 27.9 million** for the six months ended June 30, 2024, to **RMB 12.0 million** for the six months ended June 30, 2025, primarily due to a decrease in interest income from bank deposits[46](index=46&type=chunk) - Finance costs decreased by approximately **6.4%** from **RMB 52.5 million** for the six months ended June 30, 2024, to **RMB 49.2 million** for the six months ended June 30, 2025, primarily due to a decrease in bank borrowings[46](index=46&type=chunk) - The Group recorded a net share of profits from associates and joint ventures of **RMB 4.1 million** for the six months ended June 30, 2025, compared to a net loss of **RMB 4.0 million** in the same period of 2024[47](index=47&type=chunk) [Profit/Loss Before Tax and for the Period](index=16&type=section&id=Profit%2FLoss%20Before%20Tax%20and%20for%20the%20Period) Profit before tax turned to a RMB 353.0 million loss, driven by product optimization, lower gross margin, and reduced franchise stores, resulting in a RMB 353.3 million net loss for the period. - The Group recorded a loss before income tax of **RMB 353.0 million** for the six months ended June 30, 2025, compared to a profit of **RMB 99.3 million** in the same period of 2024[48](index=48&type=chunk) - Income tax expense decreased by approximately **98.1%** from **RMB 15.3 million** for the six months ended June 30, 2024, to **RMB 0.3 million** for the six months ended June 30, 2025[49](index=49&type=chunk) - For the six months ended June 30, 2025, the Group recorded a net loss of approximately **RMB 353.3 million**, compared to a net profit of approximately **RMB 84.0 million** in the same period of 2024, with a net loss margin of **8.1%**[50](index=50&type=chunk) [Non-HKFRS Measures](index=17&type=section&id=Non-HKFRS%20Measures) The company presents adjusted net loss of RMB 295.2 million and an adjusted net loss margin of 6.7% (non-HKFRS measures), reflecting the exclusion of non-recurring items. Reconciliation of (Loss)/Profit for the Period and Net (Loss)/Profit Margin to Adjusted Net (Loss)/Profit and Adjusted Net (Loss)/Profit Margin | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | (Loss)/Profit for the period (as reported under HKFRS) | (353,251) | 83,955 | | Add: Share-based payment expenses | 17,688 | 4,959 | | Add: Severance compensation expenses related to layoffs or headcount adjustments | 24,002 | 2,718 | | Add: Loss/(gain) from dilution of investment in associates and joint ventures | 16,407 | (3,658) | | Adjusted net (loss)/profit for the period (Non-HKFRS measure) | (295,154) | 87,974 | | Net (loss)/profit margin (as reported under HKFRS) | (8.1%) | 1.5% | | Adjusted net (loss)/profit margin (Non-HKFRS measure) | (6.7%) | 1.6% | [Liquidity and Capital Resources](index=18&type=section&id=Liquidity%20and%20Capital%20Resources) This section details the company's capital structure, cash position, use of global offering proceeds, debt, pledged assets, and cash flow analysis. [Capital Structure and Cash Position](index=18&type=section&id=Capital%20Structure%20and%20Cash%20Position) Net assets decreased to RMB 2,465.2 million, with cash and bank balances of RMB 2,316.5 million, including RMB 1,954.9 million in unrestricted cash, facing manageable interest rate and foreign exchange risks. - As of June 30, 2025, the Group's net assets were **RMB 2,465.2 million**, compared to **RMB 2,810.3 million** as of December 31, 2024[55](index=55&type=chunk) - As of June 30, 2025, the Group's cash and bank balances were **RMB 2,316.5 million**, which included unrestricted cash and cash equivalents of **RMB 1,954.9 million**[56](index=56&type=chunk) [Use of Proceeds from Global Offering](index=19&type=section&id=Use%20of%20Proceeds%20from%20Global%20Offering) Net proceeds from the global offering were HKD 474.0 million, with HKD 236.6 million utilized for IT system upgrades, bank loan repayment, and general working capital as of June 30, 2025. Use of Net Proceeds from Global Offering as of June 30, 2025 | Intended Use | Adjusted Allocation of Net Proceeds (HKD Million) | Percentage of Total Net Proceeds (%) | Net Proceeds Utilized as of December 31, 2024 (HKD Million) | Balance of Net Proceeds Utilized for the Six Months Ended June 30, 2025 (HKD Million) | Balance of Unutilized Net Proceeds as of June 30, 2025 (HKD Million) | Expected Timeline | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Improve and upgrade operational and supply chain systems | 23.3 | 4.9 | 11.4 | 11.9 | Zero | – | | Upgrade and improve core backbone information technology systems and infrastructure | 169.5 | 35.8 | 92.4 | 68.2 | 8.9 | Before December 31, 2026 | | Repay part of interest-bearing bank borrowings | 91.5 | 19.3 | 91.5 | Zero | Zero | – | | Use as working capital and for other general corporate purposes | 189.7 | 40.0 | 23.3 | 156.5 | 9.9 | Before December 31, 2025 | | **Total** | **474.0** | **100.0** | **218.6** | **236.6** | **18.8** | | [Debt and Pledged Assets](index=20&type=section&id=Debt%20and%20Pledged%20Assets) The company had RMB 267.4 million in non-current and RMB 2,282.9 million in current bank borrowings, with gearing rising to 103.5% due to reduced equity, and pledged assets as collateral. - As of June 30, 2025, the Group had total non-current bank borrowings of **RMB 267.4 million** and current bank borrowings of **RMB 2,282.9 million**[60](index=60&type=chunk) - The Group's gearing ratio increased from **89.3%** as of December 31, 2024, to **103.5%** as of June 30, 2025, primarily due to a decrease in total equity[60](index=60&type=chunk) - As of June 30, 2025, the Group pledged right-of-use assets of **RMB 45.5 million** and buildings classified as property, plant and equipment of **RMB 21.4 million** for its bank borrowings[61](index=61&type=chunk) [Cash Flow Analysis](index=20&type=section&id=Cash%20Flow%20Analysis) Net cash used in operating activities was RMB 123.2 million, a shift from prior year's inflow, mainly due to decreased trade payables and increased receivables, while net cash from investing was RMB 191.4 million. - For the six months ended June 30, 2025, net cash used in operating activities was **RMB 123.2 million**, compared to net cash generated from operating activities of **RMB 277.7 million** for the six months ended June 30, 2024[62](index=62&type=chunk) - For the six months ended June 30, 2025, net cash generated from investing activities was **RMB 191.4 million**, compared to net cash used in investing activities of **RMB 1,002.7 million** for the six months ended June 30, 2024[62](index=62&type=chunk) - For the six months ended June 30, 2025, net cash used in financing activities was **RMB 8.3 million**, compared to net cash generated from financing activities of **RMB 905.8 million** for the six months ended June 30, 2024[63](index=63&type=chunk) [Financial Assets, Capital, and Investment Management](index=21&type=section&id=Financial%20Assets%2C%20Capital%2C%20and%20Investment%20Management) This section covers the company's investment portfolio, capital expenditures, contingent liabilities, and significant investment activities. [Investment Portfolio](index=21&type=section&id=Investment%20Portfolio) The company invests in low-risk wealth management products, primarily structured deposits, holding RMB 487.7 million in structured deposits and other fair value financial assets. - As of June 30, 2025, the Group held structured deposits (classified as financial assets at fair value through profit or loss) of **RMB 487.7 million**[64](index=64&type=chunk) - As of June 30, 2025, the Group held other financial assets at fair value through profit or loss of **RMB 50.0 million**[64](index=64&type=chunk) - As of June 30, 2025, the Group held financial assets at fair value through other comprehensive income of **RMB 37.5 million**[64](index=64&type=chunk) [Capital Expenditure](index=21&type=section&id=Capital%20Expenditure) Capital expenditure for H1 2025 was RMB 27.1 million, primarily for payments related to the new office building construction in Shenzhen. - For the six months ended June 30, 2025, the Group's capital expenditure was **RMB 27.1 million**, primarily for payments related to the new office building under construction in Yantian District, Shenzhen, China[66](index=66&type=chunk) [Contingent Liabilities and Guarantees](index=22&type=section&id=Contingent%20Liabilities%20and%20Guarantees) As of June 30, 2025, the company had no contingent liabilities, guarantees, or significant litigation. - As of June 30, 2025, the Group had no contingent liabilities, guarantees, or any material litigation against the Group[67](index=67&type=chunk) [Material Investments, Acquisitions, and Disposals](index=22&type=section&id=Material%20Investments%2C%20Acquisitions%2C%20and%20Disposals) In H1 2025, the company subscribed to short-term, principal-protected structured deposits from CITIC Bank (RMB 500 million) and Bank of Beijing (RMB 350 million), with no other material investments or disposals. - In H1 2025, the company subscribed to CITIC Bank structured deposit products with a total principal amount of **RMB 500 million**[69](index=69&type=chunk) - In H1 2025, the company subscribed to Bank of Beijing structured deposit products with a total principal amount of **RMB 350 million**[70](index=70&type=chunk) - Save as disclosed, in H1 2025, the company had no material investments, acquisitions, or disposals of subsidiaries, associates, and joint ventures[71](index=71&type=chunk) [Operational Efficiency and Human Resources](index=23&type=section&id=Operational%20Efficiency%20and%20Human%20Resources) This section analyzes the company's turnover ratios, employee information, and relationships with major suppliers and customers. [Turnover Ratios](index=23&type=section&id=Turnover%20Ratios) Average inventory turnover days increased to 12.3, trade receivables to 35.8 due to lower revenue, and trade payables to 21.5 due to extended settlement policies. - Average inventory turnover days slightly increased from **10.9 days** for the six months ended June 30, 2024, to **12.3 days** for the six months ended June 30, 2025[73](index=73&type=chunk) - Average trade receivables turnover days slightly increased from **34.2 days** for the six months ended June 30, 2024, to **35.8 days** for the six months ended June 30, 2025, primarily due to a decrease of approximately **21.8%** in the company's total revenue[73](index=73&type=chunk) - Average trade payables turnover days increased from **14.1 days** for the six months ended June 30, 2024, to **21.5 days** for the six months ended June 30, 2025, primarily due to the company extending its settlement policy since Q4 2024[73](index=73&type=chunk) [Employees and Benefits](index=24&type=section&id=Employees%20and%20Benefits) As of June 30, 2025, the company had 2,156 employees, with RMB 338.2 million in employee benefit expenses (7.7% of total revenue), focusing on talent development and incentive schemes. - As of June 30, 2025, the Group had **2,156 employees**[74](index=74&type=chunk) - In H1 2025, the Group incurred total employee benefit expenses of **RMB 338.2 million**, accounting for approximately **7.7%** of the Group's total revenue for the same period[74](index=74&type=chunk) [Major Suppliers and Customers](index=24&type=section&id=Major%20Suppliers%20and%20Customers) Purchases from the largest supplier were 5.3% of total procurement, with top five at 20.4%, while the largest customer contributed 1.5% of revenue, with top five (all franchisees) at 6.6%. - For the six months ended June 30, 2025, purchases from the Group's largest supplier accounted for approximately **5.3%** of the Group's total procurement costs for the same period, with the top five suppliers collectively accounting for **20.4%**[75](index=75&type=chunk) - For the six months ended June 30, 2025, revenue contributed by the Group's largest customer accounted for approximately **1.5%** of the Group's total revenue for the same period, with the top five customers collectively accounting for **6.6%**, all of whom were the Group's franchisees[75](index=75&type=chunk) [Notes to Financial Statements](index=25&type=section&id=Notes%20to%20Financial%20Statements) This section provides detailed notes to the condensed consolidated interim financial statements, including income statement, comprehensive income statement, statement of financial position, general information, accounting policies, segment information, expense details, income tax, earnings per share, dividends, trade receivables, and trade payables. [Condensed Consolidated Interim Statement of Profit or Loss](index=25&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Profit%20or%20Loss) This chapter presents the unaudited consolidated income statement for H1 2025, detailing revenue, costs, profits/losses, finance items, tax, and earnings per share. Condensed Consolidated Interim Statement of Profit or Loss (For the six months ended June 30) | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue | 4,375,873 | 5,594,124 | | Cost of Sales | (4,160,322) | (4,975,616) | | Gross Profit | 215,551 | 618,508 | | Other income | 17,423 | 27,415 | | Net other gains | 6,993 | 22,517 | | Selling expenses | (257,161) | (296,617) | | Administrative expenses | (216,248) | (168,696) | | Net impairment loss allowance on financial assets | (39,920) | (8,884) | | Research and development expenses | (46,494) | (66,323) | | Operating (Loss)/Profit | (319,856) | 127,920 | | Finance income | 11,973 | 27,888 | | Finance costs | (49,152) | (52,531) | | Net finance costs | (37,179) | (24,643) | | Share of profits/(losses) of associates and joint ventures | 4,069 | (4,014) | | (Loss)/Profit Before Income Tax | (352,966) | 99,263 | | Income tax expense | (285) | (15,308) | | (Loss)/Profit for the Period | (353,251) | 83,955 | | (Loss)/Profit Attributable to Owners of the Company | (342,053) | 88,506 | | Non-controlling interests | (11,198) | (4,551) | | Basic and Diluted (Loss)/Earnings Per Share (RMB cents per share) | (23.43) | 5.83 | [Condensed Consolidated Interim Statement of Comprehensive Income](index=26&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Comprehensive%20Income) This chapter presents the unaudited consolidated statement of comprehensive income for H1 2025, showing a RMB 353.3 million loss for the period, with other comprehensive income primarily from fair value changes of financial assets. Condensed Consolidated Interim Statement of Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | (Loss)/Profit for the Period | (353,251) | 83,955 | | Other comprehensive income (net of tax) | 555 | 3,760 | | Total comprehensive (loss)/income for the Period | (352,696) | 87,715 | | Total comprehensive (loss)/income attributable to owners of the Company | (341,498) | 92,266 | | Non-controlling interests | (11,198) | (4,551) | [Condensed Consolidated Interim Statement of Financial Position](index=27&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Financial%20Position) This chapter presents the unaudited consolidated statement of financial position as of June 30, 2025, detailing assets, liabilities, and equity, with total assets of RMB 7,284.2 million, total liabilities of RMB 4,819.0 million, and net assets of RMB 2,465.2 million. Condensed Consolidated Interim Statement of Financial Position (As of June 30, 2025) | Indicator | 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | **Assets** | | | | Non-current assets | 2,201,439 | 2,323,108 | | Current assets | 5,082,726 | 5,496,480 | | **Total Assets** | **7,284,165** | **7,819,588** | | **Liabilities** | | | | Non-current liabilities | 726,233 | 650,050 | | Current liabilities | 4,092,730 | 4,359,240 | | **Total Liabilities** | **4,818,963** | **5,009,290** | | **Net Assets** | **2,465,202** | **2,810,298** | | **Equity** | | | | Capital and reserves attributable to owners of the Company | 2,373,670 | 2,707,568 | | Non-controlling interests | 91,532 | 102,730 | | **Total Equity** | **2,465,202** | **2,810,298** | [General Information and Basis of Preparation](index=29&type=section&id=General%20Information%20and%20Basis%20of%20Preparation) The company, incorporated in China in 2001 and listed on HKEX in 2023, operates a franchise retail network and fruit trading, with interim financial information prepared under HKAS 34. - The Company's shares have been listed on the Main Board of The Stock Exchange of Hong Kong Limited since **January 16, 2023**[82](index=82&type=chunk) - The Company and its subsidiaries are principally engaged in operating a franchise retail network and fruit trading[82](index=82&type=chunk) - The condensed consolidated interim financial information for the six months ended June 30, 2025, has been prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[83](index=83&type=chunk) [Accounting Policies](index=29&type=section&id=Accounting%20Policies) Accounting policies align with the 2024 annual report, adopting new standards like HKAS 21 and HKFRS 1 amendments, while management assesses the impact of other un-effective standards. - The accounting policies applied are consistent with those applied in the preparation of the Group's financial statements for the year ended December 31, 2024, except for income tax estimates and the adoption of new and revised standards, amendments to standards, and interpretations[84](index=84&type=chunk) - New and revised standards adopted by the Group include amendments to HKAS 21 and HKFRS 1 "Lack of Exchangeability"[84](index=84&type=chunk) - Management is assessing the financial impact of adopting the revised standards that are not yet effective[86](index=86&type=chunk) [Revenue and Segment Information](index=30&type=section&id=Revenue%20and%20Segment%20Information) Operating segments (Franchise, Trading, Others) are assessed by key decision-makers, with segment results excluding fair value gains/losses, auditor's remuneration, legal fees, income tax, and finance income/costs. - The chief operating decision-maker assesses the Group's performance in the following reportable operating segments: operating franchise and self-operated retail networks ("Franchise"), sales of fruits and other food - fruit trading ("Trading"), and others[88](index=88&type=chunk)[89](index=89&type=chunk) - Segment results measurement excludes the impact of fair value gains and losses on structured deposits, auditor's remuneration, legal and professional fees, income tax expense, interest income from bank deposits, and interest expense on borrowings[88](index=88&type=chunk) Contract Revenue and Segment Results by Operating Segment for the Six Months Ended June 30, 2025 | Segment | Contract Revenue (RMB '000) | Less: Inter-segment Revenue (RMB '000) | Revenue from External Customers (RMB '000) | Segment Results (RMB '000) | | :--- | :--- | :--- | :--- | :--- | | Franchise | 3,807,687 | – | 3,807,687 | (275,551) | | Trading | 724,421 | (168,370) | 556,051 | 10,688 | | Others | 24,956 | (12,821) | 12,135 | (12,810) | | **Total** | **4,557,064** | **(181,191)** | **4,375,873** | **(277,673)** | [Expense Details](index=33&type=section&id=Expense%20Details) Reporting period expenses include RMB 3,991.1 million for cost of inventories sold, RMB 338.2 million for employee benefits, RMB 66.8 million for depreciation and amortization, and other operational costs. Expense Details for the Six Months Ended June 30 | Expense Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Cost of inventories sold | 3,991,077 | 4,780,592 | | Employee benefit expenses (including directors' emoluments) | 338,244 | 331,252 | | Depreciation of property, plant and equipment | 30,155 | 25,633 | | Depreciation of right-of-use assets | 29,418 | 33,992 | | Amortisation of intangible assets | 7,186 | 8,948 | | Auditor's remuneration | 2,300 | 2,300 | | Legal and professional fees | 54,231 | 54,735 | | Transportation expenses | 77,561 | 97,914 | | Marketing and promotion expenses | 37,050 | 51,988 | | Office supplies | 3,155 | 3,735 | | Labor costs | 50,181 | 42,711 | | Short-term lease related expenses | 15,038 | 15,738 | | Travel and entertainment expenses | 5,796 | 7,750 | | Entertainment expenses | 2,019 | 4,790 | | Utilities expenses | 7,089 | 7,046 | | Other tax expenses | 7,067 | 10,700 | | Others | 22,658 | 27,428 | | **Total** | **4,680,225** | **5,507,252** | [Income Tax Expense](index=33&type=section&id=Income%20Tax%20Expense) Income tax expense was RMB 0.3 million, comprising current income tax of RMB 4.4 million and deferred tax of (RMB 4.1 million), recognized based on expected annual profit. Income Tax Expense for the Six Months Ended June 30 | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Current income tax | 4,362 | 16,305 | | Deferred tax | (4,077) | (997) | | **Income Tax Expense** | **285** | **15,308** | [Earnings Per Share](index=34&type=section&id=Earnings%20Per%20Share) Basic and diluted loss per share was RMB 23.43 cents, calculated from loss attributable to owners and weighted average shares, with diluted matching basic due to unfulfilled share award conditions. Basic (Loss)/Earnings Per Share for the Six Months Ended June 30 | Indicator | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | (Loss)/Profit attributable to owners of the Company (RMB '000) | (342,053) | 88,506 | | Weighted average number of shares outstanding ('000 shares) | 1,459,919 | 1,519,412 | | Basic (Loss)/Earnings Per Share (expressed in RMB cents) | (23.43) | 5.83 | - Diluted loss per share for the six months ended June 30, 2025, was the same as basic loss per share because the conditions for share awards had not yet been met[99](index=99&type=chunk) [Dividends](index=34&type=section&id=Dividends) A final dividend of RMB 0.0065 per share for 2024 was approved and recognized, while the Board does not recommend an interim dividend for the period ended June 30, 2025. - A final dividend of **RMB 0.0065** per ordinary share (equivalent to a total of approximately **RMB 10,006,000**) for the year ended December 31, 2024, was approved by the Company's shareholders and recognized in the condensed consolidated interim statement of financial position as of June 30, 2025[100](index=100&type=chunk) - The Board does not recommend the payment of an interim dividend for the period ended June 30, 2025[101](index=101&type=chunk) [Trade Receivables](index=35&type=section&id=Trade%20Receivables) As of June 30, 2025, total trade receivables were RMB 856.4 million (net RMB 773.0 million after allowance), with regular review of repayment progress and aging within a 90-day credit period. Total and Net Trade Receivables as of June 30, 2025 | Indicator | 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Total trade receivables | 856,350 | 1,034,749 | | Less: Loss allowance | (83,320) | (69,468) | | **Net Trade Receivables** | **773,030** | **965,281** | Aging Analysis of Trade Receivables as of June 30, 2025 | Aging | 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | 1 to 90 days | 553,115 | 653,062 | | 91 to 180 days | 189,573 | 285,007 | | 181 to 365 days | 41,603 | 36,101 | | Over one year | 72,059 | 60,579 | | **Total** | **856,350** | **1,034,749** | [Trade Payables](index=35&type=section&id=Trade%20Payables) As of June 30, 2025, total trade payables were RMB 466.3 million, with carrying amounts approximating fair values and denominated in RMB. Aging Analysis of Trade Payables as of June 30, 2025 | Aging | 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | 1 to 30 days | 433,047 | 474,711 | | 31 to 60 days | 18,155 | 20,879 | | 61 to 90 days | 1,841 | 6,859 | | Over 90 days | 13,251 | 25,421 | | **Total** | **466,294** | **527,870** | [Other Information](index=36&type=section&id=Other%20Information) This section provides additional information on interim dividends, corporate governance, securities trading, share repurchases, public float, post-reporting period events, audit committee review, and publication details. [Interim Dividend](index=36&type=section&id=Interim%20Dividend) The Board has resolved not to declare an interim dividend for the six months ended June 30, 2025. - The Board has resolved not to declare an interim dividend for the six months ended June 30, 2025[104](index=104&type=chunk) [Corporate Governance Practices](index=36&type=section&id=Corporate%20Governance%20Practices) The company maintains high corporate governance standards, adopting and complying with all applicable code provisions of the HKEX Listing Rules' Corporate Governance Code during the reporting period. - The Company has adopted the Corporate Governance Code set out in Appendix C1 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and has complied with all applicable code provisions for the six months ended June 30, 2025[105](index=105&type=chunk) [Standard Code for Securities Transactions](index=36&type=section&id=Standard%20Code%20for%20Securities%20Transactions) The company adopted the "Standard Code for Securities Transactions by Directors of Listed Issuers" (Listing Rules Appendix C3), confirming compliance by all directors and supervisors, with no employee breaches found. - The Company has adopted the "Standard Code for Securities Transactions by Directors of Listed Issuers" as set out in Appendix C3 to the Listing Rules and confirmed that all Directors and Supervisors have complied with the required standards set out in the Standard Code for the six months ended June 30, 2025[106](index=106&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=36&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) For H1 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any of its listed securities, and no treasury shares were held. - 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[107](index=107&type=chunk) [Public Float](index=36&type=section&id=Public%20Float) The company maintained a sufficient public float as required by Listing Rules for H1 2025 and up to the announcement date, with at least 25% of issued share capital held by the public. - For the six months ended June 30, 2025, and up to the date of this announcement, the Company has maintained a sufficient public float as required by the Listing Rules[108](index=108&type=chunk) [Events After the Reporting Period](index=36&type=section&id=Events%20After%20the%20Reporting%20Period) As of the date of this announcement, no significant events affecting the Group have occurred after June 30, 2025. - As of the date of this announcement, no significant events affecting the Group have occurred after June 30, 2025[109](index=109&type=chunk) [Audit Committee](index=37&type=section&id=Audit%20Committee) The Audit Committee, comprising two independent non-executive directors and one non-executive director, reviewed the Group's unaudited condensed consolidated interim financial information for H1 2025. - The Audit Committee, together with the Company's senior management, has reviewed the Group's unaudited condensed consolidated interim financial information for the six months ended June 30, 2025[110](index=110&type=chunk) [Scope of Work of PricewaterhouseCoopers](index=37&type=section&id=Scope%20of%20Work%20of%20PricewaterhouseCoopers) The unaudited condensed consolidated interim financial information was reviewed by PricewaterhouseCoopers in accordance with HKSAE 2410 issued by the HKICPA. - The condensed consolidated interim financial information is unaudited but has been reviewed by the Group's auditor, PricewaterhouseCoopers, in accordance with Hong Kong Standard on Review Engagements 2410 issued by the Hong Kong Institute of Certified Public Accountants[111](index=111&type=chunk) [Publication of 2025 Interim Results and 2025 Interim Report](index=37&type=section&id=Publication%20of%202025%20Interim%20Results%20and%202025%20Interim%20Report) This interim results announcement has been published on the company's website and the HKEX website, with the interim report to be dispatched and published as required. - This interim results announcement has been published on the Company's website (www.pagoda.com.cn) and the HKEX website (www.hkexnews.hk)[112](index=112&type=chunk)

Core Viewpoint - The recent struggles of Baiguoyuan, highlighted by a projected loss of 330 million to 380 million yuan in the first half of 2025, have drawn public attention, especially following controversial comments from founder Yu Huiyong regarding "educating consumers" rather than catering to them [2][4][9] Financial Performance - Baiguoyuan's net profit for the same period last year was 88.51 million yuan, indicating a dramatic year-on-year decline of approximately 330% [2] - The company's revenue for 2024 was reported at 10.273 billion yuan, a decrease of 9.8% compared to the previous year, with a net profit shift from a profit of 362 million yuan in 2023 to a loss of 386 million yuan in 2024, marking a staggering year-on-year decline of 206.7% [9][12] - The gross margin fell from 11.5% in 2023 to 7.4% in 2024, indicating a significant reduction in profitability [12] Market Position and Strategy - Baiguoyuan, once a leading player in the fruit retail market, has seen its market share eroded by competitors like Meituan, JD, and Pinduoduo, which offer faster delivery services [9][12] - The company has experienced a significant decline in its store count, with a net reduction of 966 stores by the end of 2024, averaging nearly 5 closures per day [12] - Despite having a large membership base of 90.74 million, the number of paying members dropped to approximately 850,000 in 2024, a decrease of about 27.1% [12] Founder and Company Background - Yu Huiyong, the founder of Baiguoyuan, has a background in agricultural research and has been instrumental in the company's growth since its establishment in 2001 [5][6] - The company transitioned from a franchise model to a direct sales approach in 2008 due to quality control issues, and it has since developed a comprehensive quality management system [6] Consumer Perception and Controversy - Yu's comments about "educating consumers" have sparked backlash, with many consumers feeling that they should not be "educated" while purchasing products [4][17] - The negative reception of Yu's statements has led to a significant impact on Baiguoyuan's reputation, as evidenced by a sharp decline in stock price following the controversy [4][17]

Core Viewpoint - 百果园 has issued a profit warning for the first half of 2025, indicating a decline in performance due to short-term factors such as store network adjustments and consumer discounts [1][2] Group 1: Financial Performance - 百果园's stock rose over 10% in early trading, currently at 1.91 HKD with a trading volume of 5.97 million HKD [1] - The company reported a dual decline in earnings, primarily attributed to the closure of over 700 inefficient stores to enhance overall operational efficiency [1] Group 2: Operational Adjustments - Recent broker reports indicate that 百果园's channel adjustments are nearing completion, with both single-store customer traffic and gross margins showing signs of recovery [1] - Successful promotional activities, such as "Good Fruits Reward," have activated consumer demand and improved brand loyalty [1] Group 3: Growth Opportunities - 百果园 is developing a second growth curve through its B2B business, which has shown significant growth potential [2] - The fruit B2B market is large and fragmented, with a CR5 of less than 5%, indicating substantial consolidation opportunities [2] - The emergence of new retail channels has diversified customer categories and market channels, potentially opening new growth avenues for the company [2]

Core Viewpoint - The company, Baiguoyuan, has issued a profit warning for the first half of 2025, indicating a decline in both revenue and profit due to short-term factors such as store network adjustments and consumer discounts [1][2] Group 1: Financial Performance - Baiguoyuan's stock price increased by over 10% in early trading, currently at 1.91 HKD with a trading volume of 5.9716 million HKD [1] - The company has closed over 700 inefficient stores to enhance overall operational efficiency [1] - Recent broker reports indicate that the channel adjustments are nearing completion, with both single-store customer traffic and gross margins showing signs of recovery [1] Group 2: Strategic Initiatives - The company's promotional activities, such as "Good Fruits Reward," have successfully stimulated consumer demand and improved brand loyalty [1] - The recovery in gross margins suggests that the increase in customer traffic is positively impacting high-margin products, reflecting the effectiveness of the company's efforts in product structure optimization and supply chain efficiency [1] - Baiguoyuan is developing a second growth curve through its B2B business, which has shown significant growth potential in a fragmented market with a CR5 of less than 5% [2] Group 3: Market Opportunities - The emergence of new retail channels and models is diversifying the customer base and market channels for the fruit sector, as noted in the company's profit warning announcement [2] - This diversification may open up new incremental growth opportunities for the company [2]