Core Viewpoint - The company, Jihong Co., Ltd. (02603.HK), reported significant growth in its interim results for the six months ending June 30, 2025, driven by the recovery of the consumer market and the efforts of its management and employees [1] Financial Performance - The company achieved a revenue of 3.23 billion RMB, representing a year-on-year increase of 31.79% [1] - The net profit attributable to shareholders reached 118 million RMB, marking a year-on-year growth of 63.27% [1] - Earnings per share for ordinary equity holders amounted to 0.30 RMB [1] Strategic Developments - On May 27, 2025, the company completed its initial public offering of H-shares and was listed on the main board of the Hong Kong Stock Exchange, becoming the first A+H listed company in the cross-border social e-commerce and paper fast-moving consumer goods packaging sectors in China [1] - The H-share listing is a key milestone in the company's globalization strategy, leveraging Hong Kong's position as an international financial hub to enhance its global presence in social e-commerce and packaging businesses [1] - The company aims to expand its sales regions and deepen its penetration into overseas markets to maintain its industry-leading position [1]

[Definitions](index=4&type=section&id=%E9%87%8B%E7%BE%A9) This section provides key vocabulary and their definitions used in the report, ensuring a clear understanding of professional terms, covering company products, stock types, and operational indicators[9](index=9&type=chunk)[10](index=10&type=chunk)[12](index=12&type=chunk)[13](index=13&type=chunk) [Company Information](index=7&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) [Board of Directors and Committees](index=7&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E5%8F%8A%E5%A7%94%E5%93%A1%E6%9C%83%E6%88%90%E5%93%A1) The company's Board of Directors comprises **11** directors, including executive, non-executive, and independent non-executive directors, with established committees for strategic, audit, remuneration, and nomination functions to enhance corporate governance - Board members include Mr. Wang Yapeng (Chairman) and Ms. Zhuang Hao (General Manager), among **11** directors[16](index=16&type=chunk) - The company has a Strategic Committee (Convener: Mr. Wang Yapeng), an Audit Committee (Convener: Dr. Zhang Guoqing), a Remuneration and Appraisal Committee (Convener: Ms. Wu Yongqian), and a Nomination Committee (Convener: Dr. Yang Chenhui)[17](index=17&type=chunk) [Principal Offices and Advisor Information](index=7&type=section&id=%E4%B8%BB%E8%A6%81%E8%BE%A6%E4%BA%8B%E8%99%95%E5%8F%8A%E9%A1%A7%E5%95%8F%E4%BF%A1%E6%81%AF) The company's head office and China headquarters are located in Xiamen, Fujian Province, with its principal place of business in Hong Kong situated on Gloucester Road, and Ernst & Young serves as its auditor, while Fosun International Capital Limited acts as its compliance advisor - Head office and China headquarters address: No. **9**, Putou Road, Phase II, Dongfu Industrial Zone, Haicang District, Xiamen City, Fujian Province, China[17](index=17&type=chunk) - Principal place of business in Hong Kong: Office **5**, **15**th Floor, BEA Harbour Centre, **56** Gloucester Road, Hong Kong SAR[17](index=17&type=chunk) - The auditor is Ernst & Young, and the compliance advisor is Fosun International Capital Limited[17](index=17&type=chunk)[18](index=18&type=chunk) [Financial Highlights](index=9&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) [Revenue by Business Segment](index=9&type=section&id=%E6%8C%89%E6%A5%AD%E5%8B%99%E5%88%86%E9%83%A8%E5%8A%83%E5%88%86%E7%9A%84%E6%94%B6%E5%85%A5) For the six months ended June **30**, **2025**, the company's total revenue increased by **31.79%** year-on-year to **RMB 3,233.53 million**, primarily driven by the cross-border social e-commerce business, which saw a significant increase in revenue contribution Revenue by Business Segment (RMB thousands) | | 2025 Revenue | 2025 Percentage | 2024 Revenue | 2024 Percentage | | :--- | :--- | :--- | :--- | :--- | | Cross-border Social E-commerce | 2,116,454 | 65.4% | 1,384,122 | 56.4% | | Paper-based Packaging | 1,115,164 | 34.5% | 1,013,388 | 41.3% | | Others | 1,908 | 0.1% | 55,954 | 2.3% | | **Total** | **3,233,526** | **100.0%** | **2,453,464** | **100.0%** | - The revenue contribution from cross-border social e-commerce business increased from **56.4%** in **2024** to **65.4%** in **2025**, becoming the primary revenue source[20](index=20&type=chunk) [Gross Profit and Gross Margin by Business Segment](index=9&type=section&id=%E6%8C%89%E6%A5%AD%E5%8B%99%E5%88%86%E9%83%A8%E5%8A%83%E5%88%86%E7%9A%84%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) During the reporting period, the company's total gross profit increased by **52.36%** year-on-year to **RMB 1,515.27 million**, with the overall gross margin rising to **46.9%**, primarily due to increased revenue contribution from the high-margin cross-border social e-commerce business Gross Profit and Gross Margin by Business Segment (RMB thousands) | | 2025 Gross Profit | 2025 Gross Margin | 2024 Gross Profit | 2024 Gross Margin | | :--- | :--- | :--- | :--- | :--- | | Cross-border Social E-commerce | 1,299,036 | 61.4% | 822,779 | 59.4% | | Paper-based Packaging | 215,199 | 19.3% | 166,594 | 16.4% | | Others | 1,037 | 54.4% | 5,171 | 9.2% | | **Total** | **1,515,272** | **46.9%** | **994,544** | **40.5%** | - The gross margin for cross-border social e-commerce business increased from **59.4%** to **61.4%**, and for paper-based packaging business, it rose from **16.4%** to **19.3%**[21](index=21&type=chunk) [Business Review](index=10&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) [Company Profile](index=10&type=section&id=%E5%85%AC%E5%8F%B8%E6%A6%82%E6%B3%81) Xiamen Jihong Technology Co, Ltd, established in **2003** and A-share listed in **2016**, completed its H-share listing on **May 27, 2025**, with its business encompassing cross-border social e-commerce and paper-based FMCG packaging, known for innovation and market leadership - The company was established in **2003**, listed on A-shares in **2016**, and on H-shares on **May 27, 2025**[22](index=22&type=chunk) - The company's businesses include cross-border social e-commerce and paper-based FMCG packaging, with the latter being one of its core businesses, offering one-stop products and services[23](index=23&type=chunk) [Cross-border Social E-commerce Business](index=10&type=section&id=%E8%B7%A8%E5%A2%83%E7%A4%BE%E4%BA%A4%E9%9B%BB%E5%95%86%E6%A5%AD%E5%8B%99) The company's cross-border social e-commerce business leverages dynamic data analysis capabilities to place targeted advertisements on social media platforms, promoting mainland Chinese goods to global overseas consumers for precise product selection and推送 - Business Model: Utilizing dynamic data analysis capabilities to place targeted advertisements on social media platforms, selling mainland Chinese goods to overseas consumers in Asia, Europe, and North America[24](index=24&type=chunk) [Paper-based FMCG Packaging Business](index=10&type=section&id=%E7%B4%99%E8%A3%BD%E5%BF%AB%E6%B6%88%E5%93%81%E5%8C%85%E8%A3%9D%E6%A5%AD%E5%8B%99) The company is one of the few in mainland China offering one-stop paper-based FMCG packaging products and services, centered on process design and technical planning, actively investing in eco-friendly packaging development, and maintaining long-term partnerships with leading FMCG enterprises - Core Capabilities: Providing one-stop paper-based packaging products and services covering the entire production process, with process design and technical planning at its core[25](index=25&type=chunk) - Environmental Commitment: Proactively investing in the development of eco-friendly packaging, responding to global trends in plastic use restrictions[25](index=25&type=chunk) [Management Discussion and Analysis](index=11&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) [Principal Businesses During the Reporting Period](index=11&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%85%A7%E5%85%AC%E5%8F%B8%E5%從%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E6%A5%AD%E5%8B%99) The company, founded on technological innovation and digital intelligence empowerment, has established a dual-driven development model of cross-border social e-commerce and FMCG packaging solutions, successfully listing H-shares during the reporting period and achieving substantial growth in revenue and net profit - The company's H-shares were listed on the Main Board of the Hong Kong Stock Exchange on **May 27, 2025**, making it the first A+H listed cross-border social e-commerce and paper-based FMCG packaging enterprise in China[27](index=27&type=chunk) Key Financial Indicators for H1 2025 (RMB ten thousands) | Indicator | Amount (RMB ten thousands) | Y-o-Y Growth | | :--- | :--- | :--- | | Revenue | 323,352.64 | 31.79% | | Net Profit Attributable to Shareholders of Listed Company | 11,814.68 | 63.27% | | Net Profit Attributable to Shareholders of Listed Company After Non-recurring Gains and Losses | 11,327.59 | 79.43% | | Cross-border Social E-commerce Business Revenue | 211,645.43 | 52.91% | | Cross-border Social E-commerce Business Net Profit Attributable to Parent | 5,540.17 | 97.67% | | Packaging Business Revenue | 111,516.43 | 10.04% | | Packaging Business Net Profit Attributable to Parent | 7,565.86 | 34.43% | | Total Assets | 406,494.79 | 16.04% (vs. beginning of year) | | Owners' Equity Attributable to Shareholders of Listed Company | 264,023.11 | 19.90% (vs. beginning of year) | | Net Cash Flows from Operating Activities | 18,263.75 | 377.80% | [28](index=28&type=chunk)[29](index=29&type=chunk) [Cross-border Social E-commerce Business](index=12&type=section&id=%E8%B7%A8%E5%A2%83%E7%A4%BE%E4%BA%A4%E9%9B%BB%E5%95%86%E6%A5%AD%E5%8B%99) The company's cross-border social e-commerce business benefits from policy support and digital intelligence technology advantages, employing a proactive and precise customer acquisition model, continuously investing in R&D to build an efficient operating system, and driving product selection, content generation, precise advertising, and global customer service with AI - Policy Support: In the first half of **2025**, China's cross-border e-commerce policy system continued to improve, injecting momentum into the high-quality development of the industry[30](index=30&type=chunk) - Business Model: Through dynamic data analysis, precise product selection, and targeted advertising, mainland Chinese goods are sold to global overseas consumers, without operating its own platform[31](index=31&type=chunk) [Unique Business Model for Proactive and Precise Customer Acquisition](index=12&type=section&id=%E4%B8%BB%E5%8B%95%E7%B2%BE%E6%BA%96%E7%99%BC%E7%8F%BE%E7%9B%AE%E6%A8%99%E5%AE%A2%E6%88%B6%E7%9A%84%E7%8D%A8%E7%89%B9%E5%95%86%E6%A5%AD%E6%A8%A1%E5%BC%8F) - The company achieves precise product selection and push notifications through proprietary big data analysis and algorithm capabilities, placing advertisements on social media platforms to guide consumers to landing pages for purchase completion[31](index=31&type=chunk)[32](index=32&type=chunk) - Product categories are extensive, including home goods, apparel, electronics, footwear, bags, beauty and personal care, health products, maternal and infant products, watches, and accessories[31](index=31&type=chunk) [Continuous R&D Investment to Build an Efficient Operating System](index=13&type=section&id=%E6%8C%81%E7%BA%8C%E7%9A%84%E7%A0%94%E7%99%BC%E6%8A%95%E5%85%A5%EF%BC%8C%E6%A7%8B%E5%BB%BA%E9%AB%98%E6%95%88%E7%9A%84%E9%81%8B%E7%87%9F%E7%B3%BB%E7%B5%B1) - The company independently developed and continuously iterates the "Giikin" operation management system, utilizing AI applications to seamlessly connect all stages from product selection, advertising, procurement, transportation, and logistics[34](index=34&type=chunk) - The explosive development of AI large model technology in **2025** enhanced the company's "AI e-commerce" advantage, forging a core competitive moat of "data + intelligent algorithms"[35](index=35&type=chunk) [Intelligent Product Selection: Data-Driven Precise Decision-Making](index=13&type=section&id=%E6%99%BA%E8%83%BD%E9%81%B8%E5%93%81%EF%BC%9A%E6%95%B8%E6%93%9A%E9%A9%85%E5%8B%95%E7%9A%84%E7%B2%BE%E6%BA%96%E6%B1%BA%E7%AD%96) - Relying on the ChatGiiKin–**6B** e-commerce text vertical model, the company analyzes consumer preferences in different regional markets, formulating customized strategies for the product selection team to improve decision-making efficiency[35](index=35&type=chunk) [Content Generation: A Creative Engine Spanning Cultures and Languages](index=13&type=section&id=%E5%85%A7%E5%AE%B9%E7%94%A2%E7%94%9F%EF%BC%9A%E8%B7%A8%E8%B6%8A%E6%96%87%E5%8C%96%E8%88%87%E8%AA%9E%E8%A8%80%E7%9A%84%E5%89%B5%E6%84%8F%E5%BC%95%E6%93%8E) - Utilizing self-developed AI technology for efficient localization, the ChatGiiKin–**6B** model automatically generates multi-language product titles, keywords, and descriptions, and intelligently adapts advertising materials[35](index=35&type=chunk) [Precise Advertising: Intelligent Marketing Closed Loop](index=14&type=section&id=%E7%B2%BE%E6%BA%96%E6%8A%95%E6%94%BE%EF%BC%9A%E6%99%BA%E8%83%BD%E5%8C%96%E7%9A%84%E7%87%9F%E9%8A%B7%E9%96%89%E7%92%B0) - The Giikin system integrates the G–king advertising assistant, connecting with platforms like Meta, TikTok, and Google via API to analyze advertising data and recommend effective advertising strategies[36](index=36&type=chunk) [Global Operations: AI-Driven Customer Service and Expansion](index=14&type=section&id=%E5%85%A8%E7%90%83%E9%81%8B%E7%87%9F%EF%BC%9AAI%E9%A9%85%E5%8B%95%E7%9A%84%E5%AE%A2%E6%88%B6%E6%9C%8D%E5%8B%99%E8%88%87%E6%8B%93%E5%B1%95) - Leveraging AI robots to provide multi-language instant translation and intelligent responses, offering **7x24**-hour customer service to over **40** countries and regions globally, reducing operational costs and supporting business expansion[36](index=36&type=chunk) [Long-term Strategic Planning](index=14&type=section&id=%E9%95%B7%E6%9C%9F%E6%88%B0%E7%95%A5%E8%A6%8F%E5%8A%83) - The company will continue to increase investment in artificial intelligence, building a "data-centric" operating model to achieve full-chain digital and intelligent management, driving cost reduction, efficiency improvement, and user experience upgrades[37](index=37&type=chunk) - The company will strengthen brand building, incubating its own brands such as SENADA BIKES, Veimia, Konciwa, and PETTENA, to enhance market competitiveness and brand influence[37](index=37&type=chunk) [Paper-based FMCG Packaging Business](index=15&type=section&id=%E7%B4%99%E8%A3%BD%E5%BF%AB%E6%B6%88%E5%93%81%E5%8C%85%E8%A3%9D%E6%A5%AD%E5%8B%99) The company's paper-based packaging business aligns with industry trends towards automation, intelligence, and green practices, integrating environmental concepts throughout the production process, providing one-stop integrated services, and establishing long-term partnerships with leading domestic and international FMCG enterprises - Development Direction: Actively responding to national green economy and low-carbon transition policies, committed to developing eco-friendly materials and green packaging technologies, integrating ESG principles into product design and manufacturing[39](index=39&type=chunk) - Competitive Advantages: Operating **10** production facilities nationwide, holding multiple professional certifications, and establishing strategic partnerships with leading FMCG companies in various sub-sectors including food, catering, beverages, and daily necessities, both domestically and internationally[40](index=40&type=chunk) [Financial Review](index=16&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) This section provides a detailed review of financial performance during the reporting period, including revenue, cost, gross profit, various expenses, net profit, liquidity, and key financial ratios, indicating a significant improvement in the company's overall profitability - The company's net profit increased by **107.07%** from **RMB 65.99 million** in the first half of **2024** to **RMB 136.64 million** in the first half of **2025**[71](index=71&type=chunk) - Cash and bank balances increased from **RMB 711.06 million** at the end of **2024** to **RMB 1,275.83 million** as of June **30**, **2025**, primarily due to proceeds from the H-share issuance[72](index=72&type=chunk) [Revenue](index=16&type=section&id=%E6%94%B6%E5%85%A5) - For the six months ended June **30**, **2025**, revenue was **RMB 3,233.53 million**, a year-on-year increase of **31.79%**, primarily attributable to the growth in cross-border social e-commerce and paper-based packaging businesses[41](index=41&type=chunk) Revenue by Business Segment (RMB thousands) | Business Segment | 2025 Revenue | 2025 Percentage | 2024 Revenue | 2024 Percentage | | :--- | :--- | :--- | :--- | :--- | | Cross-border Social E-commerce | 2,116,454 | 65.4% | 1,384,122 | 56.4% | | Paper-based Packaging | 1,115,164 | 34.5% | 1,013,388 | 41.3% | | Others | 1,908 | 0.1% | 55,954 | 2.3% | | **Total** | **3,233,526** | **100.0%** | **2,453,464** | **100.0%** | [42](index=42&type=chunk) [Cost of Sales](index=17&type=section&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC) - Cost of sales increased from **RMB 1,458.92 million** in the first half of **2024** to **RMB 1,718.25 million** in the first half of **2025**, primarily due to revenue growth[45](index=45&type=chunk) Cost of Sales by Nature (RMB thousands) | Cost of Sales | 2025 | 2025 Percentage | 2024 | 2024 Percentage | | :--- | :--- | :--- | :--- | :--- | | Raw Materials and Goods Cost | 906,163 | 52.7% | 842,007 | 57.7% | | Labor Cost | 219,954 | 12.8% | 182,966 | 12.5% | | Logistics Cost | 490,592 | 28.6% | 301,608 | 20.7% | | Others | 101,545 | 5.9% | 132,339 | 9.1% | | **Total** | **1,718,254** | **100.0%** | **1,458,920** | **100.0%** | [47](index=47&type=chunk) [Gross Profit and Gross Margin](index=18&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) - Gross profit increased from **RMB 995 million** in the first half of **2024** to **RMB 1,515 million** in the first half of **2025**, with the gross margin improving from **40.5%** to **46.9%**[48](index=48&type=chunk) - The increase in gross margin is primarily attributable to the higher contribution from the cross-border social e-commerce business, which has a higher gross margin[48](index=48&type=chunk) [Other Income and Gains](index=18&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A) - Other income and gains decreased from **RMB 32.34 million** in the first half of **2024** to **RMB 23.57 million** in the first half of **2025**, mainly due to a reduction in government grants and interest income[50](index=50&type=chunk) [Selling and Marketing Expenses](index=19&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E7%87%9F%E9%8A%B7%E9%96%8B%E6%94%AF) - Selling and marketing expenses increased by **56.82%** from **RMB 745.33 million** in the first half of **2024** to **RMB 1,168.86 million** in the first half of **2025**[52](index=52&type=chunk) - The primary reason for this increase is the expansion of the cross-border social e-commerce business, leading to higher advertising expenses, which accounted for **95.9%** of selling and marketing expenses[52](index=52&type=chunk)[54](index=54&type=chunk) [Administrative Expenses](index=20&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) - Administrative expenses increased by **8.52%** from **RMB 117.75 million** in the first half of **2024** to **RMB 127.79 million** in the first half of **2025**[57](index=57&type=chunk) - This increase is primarily attributable to higher staff costs due to an increase in the number of employees, with staff costs accounting for **59.2%** of administrative expenses[57](index=57&type=chunk)[59](index=59&type=chunk) [Research and Development Expenses](index=21&type=section&id=%E7%A0%94%E7%99%BC%E9%96%8B%E6%94%AF) - Research and development expenses increased by **5.51%** from **RMB 63.87 million** in the first half of **2024** to **RMB 67.39 million** in the first half of **2025**[61](index=61&type=chunk) - This was mainly due to increased material costs and higher staff costs resulting from an increase in the number of employees in the technology department[61](index=61&type=chunk) [Finance Costs](index=22&type=section&id=%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) - Finance costs increased from approximately **RMB 6.02 million** in the first half of **2024** to **RMB 6.61 million** in the first half of **2025**, primarily due to an increase in interest expenses on bank borrowings[63](index=63&type=chunk) Finance Costs Details (RMB thousands) | Finance Costs | 2025 | 2025 Percentage | 2024 | 2024 Percentage | | :--- | :--- | :--- | :--- | :--- | | Bank Borrowing Interest | 3,898 | 59.0% | 2,864 | 47.6% | | Lease Liabilities Interest | 2,425 | 36.7% | 2,249 | 37.4% | | Factoring Fees | 285 | 4.3% | 905 | 15.0% | | **Total** | **6,608** | **100.0%** | **6,018** | **100.0%** | [64](index=64&type=chunk) [Other Expenses and Losses](index=23&type=section&id=%E5%85%B6%E4%BB%96%E9%96%8B%E6%94%AF%E5%8F%8A%E虧%E6%90%8D) - Other expenses and losses increased from **RMB 0.96 million** in the first half of **2024** to **RMB 3.14 million** in the first half of **2025**, primarily due to an increase in investment losses from the deregistration of a subsidiary[66](index=66&type=chunk) Other Expenses and Losses Details (RMB thousands) | Item | 2025 | 2025 Percentage | 2024 | 2024 Percentage | | :--- | :--- | :--- | :--- | :--- | | Investment Loss from Deregistration of Subsidiary | 2,379 | 75.8% | – | – | | Loss on Disposal of Subsidiary | – | – | 553 | 57.8% | | Others (Impairment Loss on Property, Plant and Equipment) | 762 | 24.2% | 404 | 42.2% | | **Total** | **3,141** | **100.0%** | **957** | **100.0%** | [67](index=67&type=chunk)[68](index=68&type=chunk)[69](index=69&type=chunk) [Income Tax Expense](index=23&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) - Income tax expense increased from **RMB 15 million** in the first half of **2024** to **RMB 23 million** in the first half of **2025**, primarily due to an increase in profit leading to higher income tax provision[70](index=70&type=chunk) [Profit for the Period](index=24&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E9%96%93%E7%B4%94%E5%88%A9) - The company's net profit increased from **RMB 65.99 million** in the first half of **2024** to **RMB 136.64 million** in the first half of **2025**, representing a **107.07%** increase[71](index=71&type=chunk) [Liquidity and Working Capital](index=24&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E7%87%9F%E9%81%8B%E8%B3%87%E9%87%91) - As of June **30**, **2025**, cash and bank balances increased from **RMB 711.06 million** as of December **31**, **2024**, to **RMB 1,275.83 million**, primarily due to proceeds from the H-share issuance[72](index=72&type=chunk) - As of June **30**, **2025**, current assets were **RMB 2,592.82 million**, and current liabilities were **RMB 1,205.88 million**[72](index=72&type=chunk) [Cash Flows](index=24&type=section&id=%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F) - As of June **30**, **2025**, cash and cash equivalents were **RMB 1,275.83 million**, an increase from **RMB 666.03 million** as of June **30**, **2024**[73](index=73&type=chunk) [Key Financial Ratios](index=24&type=section&id=%E4%B8%BB%E8%A6%81%E8%B2%A1%E5%8B%99%E6%AF%94%E7%8E%87) Key Financial Ratios | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Gross Profit Margin | 46.86% | 40.54% | | Net Profit Margin | 4.23% | 2.69% | | Return on Equity | 11.21% | 5.91% | | Return on Total Assets | 7.22% | 3.96% | | Current Ratio | 2.15 | 2.50 | | Quick Ratio | 1.81 | 1.91 | | Inventory Turnover Days | 46.78 | 56.62 | | Debt-to-Equity Ratio | 13.07% | 9.33% | [74](index=74&type=chunk) - Profitability ratios (gross profit margin, net profit margin, return on equity, return on total assets) all showed significant improvement[74](index=74&type=chunk) - Inventory turnover days shortened, indicating improved inventory management efficiency[74](index=74&type=chunk) [Treasury Policy](index=25&type=section&id=%E5%BA%AB%E5%8B%99%E6%94%BF%E7%AD%96) The Group adopts a prudent financial management approach, maintaining a robust liquidity position and balancing funding continuity and flexibility through bank overdrafts, borrowings, and long-term leases - The company aims to ensure that its liquidity structure of assets, liabilities, and other commitments can meet its funding needs through diversified financing methods[76](index=76&type=chunk) [Material Investments](index=25&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) For the six months ended June **30**, **2025**, the Group did not make any material investments - During the reporting period, the Group did not undertake any material investments[77](index=77&type=chunk) [Market Risks](index=26&type=section&id=%E5%B8%82%E5%A0%B4%E9%A2%A8%E9%9A%AA) The company faces various market risks, including raw material price fluctuations, exchange rate volatility, loss of key talent, and changes in tax incentive policies, and has implemented corresponding measures to mitigate potential impacts - Risk Types: Raw material price fluctuations, foreign exchange risk, credit risk, risk of losing key talent, and tax incentive risk[79](index=79&type=chunk) [Raw Material Price Fluctuation Risk](index=26&type=section&id=%E5%8E%9F%E6%9D%90%E6%96%99%E5%83%B9%E6%A0%BC%E6%B3%A2%E5%8B%95%E9%A2%A8%E9%9A%AA) - Risk: Fluctuations in raw paper prices negatively impact the gross margin of the packaging business[80](index=80&type=chunk) - Countermeasures: Closely monitor market dynamics, implement supplier price locking, advance stocking, centralized group procurement, and establish a price transmission system[80](index=80&type=chunk) [Exchange Rate Fluctuation Risk](index=26&type=section&id=%E5%BD%99%E7%8E%87%E6%B3%A2%E5%8B%95%E9%A2%A8%E9%9A%AA) - Risk: The cross-border social e-commerce business involves multiple foreign currency settlements, and changes in RMB to foreign currency exchange rates may affect profitability[81](index=81&type=chunk) - Countermeasures: Real-time monitoring of the foreign exchange market, considering foreign exchange hedging activities, and strengthening risk management[81](index=81&type=chunk) [Risk of Losing Key Talent](index=26&type=section&id=%E6%A0%B8%E5%BF%83%E4%BA%BA%E6%89%8D%E6%B5%81%E5%A4%B1%E7%9A%84%E9%A2%A8%E9%9A%AA) - Risk: The surging demand for professional talent in the internet industry means the loss of key technical personnel could adversely affect the company's operations and development[82](index=82&type=chunk) - Countermeasures: Building a strategic talent pool, optimizing talent structure, strengthening employee incentive mechanisms, and attracting and retaining outstanding talent[82](index=82&type=chunk) [Tax Incentive Risk](index=27&type=section&id=%E7%A8%85%E6%94%B6%E5%84%AA%E6%83%A0%E9%A2%A8%E9%9A%AA) - Risk: The company and some subsidiaries enjoy a **15%** corporate income tax preferential rate for high-tech enterprises; changes in policies or non-compliance with qualification standards may affect operating performance[84](index=84&type=chunk) - Countermeasures: Closely monitor tax incentive policy developments, promptly apply for certificate renewals, and ensure continued enjoyment of preferential treatment[84](index=84&type=chunk) [Material Acquisitions and Disposals](index=27&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE) For the six months ended June **30**, **2025**, the Group did not have any material acquisitions or disposals of subsidiaries, consolidated affiliated entities, or associates - During the reporting period, the Group did not undertake any material acquisitions or disposals[85](index=85&type=chunk) [Future Plans for Material Investments and Capital Assets](index=27&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E7%9A%84%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) As of the date of this interim report, the Group holds no material investments and has no future plans regarding material investments or capital assets - As of the report date, the Group has no future plans for material investments or capital assets[86](index=86&type=chunk) [Bank Loans and Other Borrowings](index=27&type=section&id=%E9%8A%80%E8%A1%8C%E8%B2%B8%E6%AC%BE%E5%8F%8A%E5%85%B6%E4%BB%96%E5%80%9F%E6%AC%BE) As of June **30**, **2025**, the Group's total loans and borrowings amounted to **RMB 348.4 million**, an increase of **40.4%** from December **31**, **2024**, with the debt-to-equity ratio decreasing by **6.11** percentage points from the beginning of the year to **52.51%** - As of June **30**, **2025**, the Group's total borrowings were **RMB 348.44 million**, and lease liabilities were **RMB 72.18 million**[87](index=87&type=chunk) - Total loans and borrowings increased by approximately **RMB 100.3 million** or **40.4%** compared to December **31**, **2024**[87](index=87&type=chunk) - The debt-to-equity ratio was **52.51%**, a decrease of **6.11** percentage points compared to December **31**, **2024**[88](index=88&type=chunk) [Contingent Liabilities](index=28&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June **30**, **2025**, the company had no contingent liabilities - As of June **30**, **2025**, the company had no contingent liabilities[89](index=89&type=chunk) [Pledge of Shares by Controlling Shareholders](index=28&type=section&id=%E6%8E%A7%E8%82%A1%E8%82%A1%E6%9D%B1%E8%82%A1%E4%BB%BD%E8%B3%AA%E6%8A%BC) As of the date of this interim report, controlling shareholders Ms. Zhuang Hao and Mr. Zhuang Shu have pledged a portion of their A-shares to Chinese licensed financial institutions as collateral for personal financing and external entity operations - Ms. Zhuang Hao pledged **26,350,000** A-shares, accounting for **5.82%** of the total share capital[90](index=90&type=chunk) - Mr. Zhuang Shu pledged **15,900,000** A-shares, accounting for **3.51%** of the total share capital[90](index=90&type=chunk) [Employees and Remuneration](index=28&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC) As of June **30**, **2025**, the company had **4,619** employees, primarily in production, operations, and technology departments, offering basic salaries, performance bonuses, various training programs, and participating in government-mandated welfare schemes Number of Employees by Role | Role | Number of Employees | Percentage of Total Employees | | :--- | :--- | :--- | | Production | 2,323 | 50.3% | | Sales and Marketing | 81 | 1.8% | | Technology | 587 | 12.7% | | Accounting and Finance | 105 | 2.3% | | General Administration | 482 | 10.4% | | Operations | 1,041 | 22.5% | | **Total** | **4,619** | **100%** | [92](index=92&type=chunk) - Remuneration includes basic salary, performance bonuses, year-end bonuses, project bonuses, and other miscellaneous bonuses, along with new employee onboarding training, skills training, and professional and management training[94](index=94&type=chunk) [Events After Reporting Period](index=29&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) Except as disclosed in this interim report, the company is not aware of any material events that may affect the Group from June **30**, **2025**, up to the date of this interim report - As of the date of this interim report, the company has not identified any material events after the reporting period[95](index=95&type=chunk) [Interim Dividend](index=29&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board recommends declaring an interim dividend of **RMB 0.18** per share (tax inclusive) for the six months ended June **30**, **2025**, subject to approval at an extraordinary general meeting - The proposed interim dividend is **RMB 0.18** per share (tax inclusive), based on **442,602,888** distributable shares[96](index=96&type=chunk) - The dividend is subject to approval at the extraordinary general meeting to be held on September **8**, **2025**, and is expected to be paid within **two** months after approval[96](index=96&type=chunk) [Corporate Governance and Other Information](index=30&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) [Corporate Governance Practices](index=30&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A6%8F) The company is committed to maintaining high standards of corporate governance, having established a modern corporate governance structure and adopted a corporate governance code, and has complied with all applicable code provisions during the reporting period, except for the unseparated roles of Chairman and Chief Executive - The company has established several independently operating and effectively balanced organizations, including the general meeting of shareholders, the Board of Directors, the Supervisory Committee (now abolished), and senior management[98](index=98&type=chunk) - The roles of Chairman and Chief Executive are not separated, with the Chief Executive's functions performed by an executive director, and the Board believes this structure does not impair the balance of power[98](index=98&type=chunk) [Standard Code for Securities Transactions by Directors](index=30&type=section&id=%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The company has adopted a code of conduct for securities transactions no less stringent than the Listing Rules' Model Code, applicable to all directors and senior management, and all directors confirmed strict compliance with this code during the reporting period - The company has adopted a "Securities Policy" whose terms are no less stringent than the Model Code set out in Appendix C**3** of the Listing Rules[100](index=100&type=chunk) - All directors confirmed strict compliance with the Model Code and the Securities Policy during the relevant period[101](index=101&type=chunk) [Audit Committee](index=31&type=section&id=%E5%AF%A9%E8%A8%88%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee, composed of three independent non-executive directors, is responsible for reviewing compliance matters, accounting policies, financial reporting procedures, and overseeing the internal audit system, and has reviewed this interim report and financial statements - The Audit Committee comprises three independent non-executive directors: Dr. Zhang Guoqing (Chairman), Ms. Wu Yongqian, and Dr. Yang Chenhui[103](index=103&type=chunk) - Its main responsibilities include reviewing compliance, accounting policies, financial reporting, overseeing internal audit, and providing recommendations on external auditors[103](index=103&type=chunk) [Other Board Committees](index=31&type=section&id=%E5%85%B6%E4%BB%96%E8%91%A3%E4%BA%8B%E5%A7%94%E5%93%A1%E6%9C%83) In addition to the Audit Committee, the company has also established a Nomination Committee, a Strategic Committee, and a Remuneration and Appraisal Committee, with written terms of reference as stipulated by the Listing Rules - The company has a Nomination Committee, a Strategic Committee, and a Remuneration and Appraisal Committee, all with written terms of reference[104](index=104&type=chunk) [Directors' Rights to Acquire Shares or Debentures](index=31&type=section&id=%E8%91%A3%E4%BA%8B%E6%94%B6%E8%B3%BC%E8%82%A1%E4%BB%BD%E6%88%96%E5%82%B5%E6%AC%8A%E8%AD%89%E4%B9%8B%E6%AC%8A%E5%88%A9) During the reporting period, neither the company nor any of its subsidiaries was a party to any arrangement enabling directors, their spouses, or children under **18** to acquire benefits through the acquisition of shares or debentures of the company or any other body corporate - During the reporting period, directors and their associates did not acquire rights to purchase shares or debentures of the company or other corporations through any arrangement[105](index=105&type=chunk) [Interests and Short Positions of Directors and Chief Executive in Shares, Underlying Shares, and Debentures of the Company or its Associated Corporations](index=32&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E4%B8%BB%E8%A6%81%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%93%A1%E6%96%BC%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%88%96%E5%85%B6%E4%BB%BB%E4%BD%95%E7%9B%B8%E8%81%AF%E6%B3%95%E5%9C%98%E7%9A%84%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E5%8F%8A%E5%82%B5%E6%AC%8A%E8%AD%89%E4%B9%8B%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) As of the date of this interim report, several directors and chief executive officers held beneficial interests and/or interests as parties acting in concert in the company's shares, with Ms. Zhuang Hao being the largest beneficial interest holder Directors' Interests as of Interim Report Date (A-shares) | Director Name | Nature of Interest | Number of Shares Held | Approximate Percentage | | :--- | :--- | :--- | :--- | | Ms. Zhuang Hao | Beneficial Interest | 69,623,082 | 15.38% | | | Interests as Parties Acting in Concert | 53,866,003 | 11.90% | | Mr. Zhuang Shu | Beneficial Interest | 34,671,025 | 7.66% | | | Interests as Parties Acting in Concert | 88,818,060 | 19.62% | | Mr. Zhang Heping | Beneficial Interest | 6,236,125 | 1.38% | | | Interests as Parties Acting in Concert | 117,252,960 | 25.90% | | Mr. Lu Tashan | Beneficial Interest | 875,000 | 0.19% | | | Interests as Parties Acting in Concert | 122,614,085 | 27.09% | | Mr. Wang Yapeng | Beneficial Interest | 12,179,900 | 2.69% | [107](index=107&type=chunk) - Ms. Zhuang Hao, Mr. Zhuang Shu, Ms. He Jingying, Mr. Zhang Heping, Mr. Zhuang Zhenhai, Mr. Lu Tashan, and Tibet Yongyue are parties acting in concert, forming a single largest shareholder group[109](index=109&type=chunk)[112](index=112&type=chunk) [Interests and Short Positions of Substantial Shareholders in Shares and Underlying Shares of the Company](index=33&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E6%96%BC%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%82%A1%E4%BB%BD%E5%8F%8A%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E4%B9%8B%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) As of the date of this interim report, in addition to directors and chief executive officers, substantial shareholders such as Ms. He Jingying, Tibet Yongyue, and Mr. Zhuang Zhenhai also held interests and/or interests as parties acting in concert in the company's shares Substantial Shareholders' Interests as of Interim Report Date (A-shares) | Shareholder Name/Entity | Nature of Interest | Number of Shares Held | Approximate Percentage | | :--- | :--- | :--- | :--- | | Ms. He Jingying | Beneficial Interest | 6,638,925 | 1.47% | | | Interests as Parties Acting in Concert | 116,850,160 | 25.81% | | Tibet Yongyue | Beneficial Interest | 5,444,928 | 1.20% | | | Interests as Parties Acting in Concert | 118,044,157 | 26.08% | | Mr. Zhuang Zhenhai | Interest in Controlled Corporation | 5,444,928 | 1.20% | | | Interests as Parties Acting in Concert | 118,044,157 | 26.08% | [111](index=111&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=34&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%9A%84%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) On July **7**, **2025**, the company convened an extraordinary general meeting to approve the repurchase and cancellation of certain restricted A-shares, and as of the date of this interim report, the company held **10,076,400** treasury shares (A-shares) - On July **7**, **2025**, the company approved the repurchase and cancellation of restricted A-shares granted to certain participants[114](index=114&type=chunk) - As of the date of this interim report, the company held **10,076,400** treasury shares (A-shares)[114](index=114&type=chunk) [Amendments to Articles of Association](index=35&type=section&id=%E4%BF%AE%E8%A8%82%E7%AB%A0%E7%A8%8B) To comply with listed company regulatory requirements and improve corporate governance, the Board proposed several amendments to the Articles of Association, including the abolition of the Supervisory Committee to be replaced by the Audit Committee, and adjustments to the powers of the general meeting and the Board - Key amendments include the abolition of the Supervisory Committee to be replaced by the Audit Committee, adjustments to the powers of the general meeting and the Board, and provisions for directors, the Board, and Board committees[116](index=116&type=chunk) - These amendments were passed and approved at the extraordinary general meeting held on July **7**, **2025**[116](index=116&type=chunk) [Changes in Information of Directors and Supervisors](index=35&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E7%9B%A3%E4%BA%8B%E8%B3%87%E6%96%99%E8%AE%8A%E6%9B%B4) At the first extraordinary general meeting in **2025**, the company approved the proposal to abolish the Supervisory Committee, which will no longer be established, with its powers exercised by the Audit Committee - The company has abolished the Supervisory Committee, and its powers are now exercised by the Audit Committee[117](index=117&type=chunk) [Material Litigation](index=35&type=section&id=%E9%87%8D%E5%A4%A7%E8%A8%B4%E8%A8%9F) During the reporting period, the company was not involved in any material litigation or arbitration, and the directors were not aware of any pending or threatened material litigation or claims against the Group - During the reporting period, the company was not involved in any material litigation or arbitration[119](index=119&type=chunk)[120](index=120&type=chunk) [Public Float](index=35&type=section&id=%E5%85%AC%E7%9C%BE%E6%8C%81%E8%82%A1%E9%87%8F) From the listing date up to the date of this interim report, the company's public float has been maintained in compliance with the exemption granted by the Stock Exchange - The company's public float complies with the Stock Exchange's exemption requirements[121](index=121&type=chunk) [Continuing Disclosure Obligations Under Listing Rules](index=35&type=section&id=%E6%A0%B9%E6%93%9A%E4%B8%8A%E5%B8%82%E8%A6%8F%E5%88%99%E7%9A%84%E6%8C%81%E7%BA%8C%E6%8A%AB%E9%9C%B2%E8%B2%AC%E4%BB%BB) The company has no other disclosure obligations under Rules **13.20**, **13.21**, and **13.22** of the Listing Rules - The company has fulfilled its continuing disclosure obligations under the Listing Rules and has no other disclosure requirements[122](index=122&type=chunk) [Use of Net Proceeds from Global Offering](index=36&type=section&id=%E5%85%A8%E7%90%83%E7%99%BC%E5%94%AE%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%85%E6%B7%A8%E9%A1%8D%E7%94%A8%E9%80%94) The net proceeds from the global offering, approximately **HKD 422.0 million**, will be used for the purposes stated in the prospectus, with no changes to the intended use as of the date of this interim report, but remain unutilized - The net proceeds from the global offering are approximately **HKD 422.0 million**, with no change to the intended use[123](index=123&type=chunk) Use of Net Proceeds from Global Offering (million HKD) | Intended Use | Percentage of Total Net Proceeds | Net Proceeds for Relevant Use | Net Proceeds Utilized as of Interim Report Date | Unutilized Amount as of Interim Report Date | | :--- | :--- | :--- | :--- | :--- | | Overseas Market Expansion | 40% | 168.8 | 0 | 168.8 | | Technology Development (R&D, Data Analysis, Giikin Cloud) | 35% | 147.7 | 0 | 147.7 | | Expand Brand Portfolio and Develop Own Brands | 15% | 63.3 | 0 | 63.3 | | Working Capital and Other General Corporate Purposes | 10% | 42.2 | 0 | 42.2 | | **Total** | **100%** | **422.0** | **0** | **422.0** | [124](index=124&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=37&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (RMB thousands) | Item | June 30, 2025 (Unaudited) | June 30, 2024 (Audited) | | :--- | :--- | :--- | | Revenue | 3,233,526 | 2,453,464 | | Cost of Sales | (1,718,254) | (1,458,920) | | **Gross Profit** | **1,515,272** | **994,544** | | Other Income and Gains | 23,569 | 32,336 | | Selling and Marketing Expenses | (1,168,862) | (745,329) | | Administrative Expenses | (127,786) | (117,753) | | Research and Development Expenses | (67,393) | (63,872) | | Impairment Loss on Financial Assets | (4,235) | (1,043) | | Share of Profit / (Loss) of an Associate | 599 | (1,620) | | Net Exchange (Loss) / Gain | (1,668) | (9,293) | | Finance Costs | (6,608) | (6,018) | | Other Expenses and Losses | (3,141) | (957) | | **Profit Before Tax** | **159,748** | **80,995** | | Income Tax Expense | (23,113) | (15,006) | | **Profit for the Period** | **136,635** | **65,989** | | Profit Attributable to Owners of the Parent | 118,147 | 72,363 | | Profit Attributable to Non-controlling Interests | 18,488 | (6,374) | | **Basic EPS (RMB per share)** | **0.30** | **0.19** | | **Diluted EPS (RMB per share)** | **0.30** | **0.19** | | **Total Comprehensive Income for the Period** | **136,173** | **62,951** | [127](index=127&type=chunk)[128](index=128&type=chunk) [Condensed Consolidated Statement of Financial Position](index=39&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) Condensed Consolidated Statement of Financial Position (RMB thousands) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | **Total Non-current Assets** | **1,472,130** | **1,529,001** | | Property, Plant and Equipment | 891,575 | 930,436 | | Right-of-use Assets | 159,779 | 176,350 | | Investment in an Associate | 85,632 | 107,477 | | **Total Current Assets** | **2,592,818** | **1,974,093** | | Inventories | 404,583 | 447,889 | | Trade Receivables | 599,880 | 553,885 | | Cash and Cash Equivalents | 1,275,834 | 711,062 | | **Total Current Liabilities** | **1,205,877** | **1,084,387** | | Trade and Bills Payables | 745,740 | 716,560 | | Interest-bearing Bank and Other Borrowings (Current) | 230,919 | 121,126 | | **Net Current Assets** | **1,386,942** | **889,706** | | **Total Non-current Liabilities** | **193,621** | **210,192** | | Interest-bearing Bank and Other Borrowings (Non-current) | 117,523 | 127,067 | | **Net Assets** | **2,665,451** | **2,208,515** | | Equity Attributable to Owners of the Parent | 2,640,231 | 2,202,024 | | Non-controlling Interests | 25,220 | 6,491 | | **Total Equity** | **2,665,451** | **2,208,515** | [130](index=130&type=chunk)[131](index=131&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=41&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) Condensed Consolidated Statement of Changes in Equity (RMB thousands) | Item | Share Capital | Treasury Shares | Share Premium | Share Award Reserve | Statutory Reserve | Other Comprehensive Income | Retained Profits | Total Equity Attributable to Parent Owners | Non-controlling Interests | Total Equity | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **As at January 1, 2025** | **384,769** | **(136,164)** | **245,825** | **6,863** | **96,119** | **(20,849)** | **1,625,461** | **2,202,024** | **6,491** | **2,208,515** | | Profit for the Year | – | – | – | – | – | – | 118,147 | 118,147 | 18,488 | 136,635 | | Exchange Differences on Translation of Foreign Operations | – | – | – | – | – | (377) | – | (377) | (84) | (461) | | **Total Comprehensive Income for the Period** | **–** | **–** | **–** | **–** | **–** | **(377)** | **118,147** | **117,770** | **18,404** | **136,173** | | Issuance of Ordinary Shares | 67,910 | – | 319,104 | – | – | – | – | 387,014 | – | 387,014 | | Equity-settled Share-based Payment Expense | – | – | – | 2,709 | – | – | – | 2,709 | – | 2,709 | | Repurchase of Shares for Share Incentive Scheme | – | (9,562) | – | – | – | – | – | (9,562) | – | (9,562) | | Dividends Declared | – | – | – | – | – | – | (59,724) | (59,724) | – | (59,724) | | Contribution from Non-controlling Interests | – | – | – | – | – | – | – | – | 325 | 325 | | **As at June 30, 2025** | **452,679** | **(145,726)** | **564,929** | **9,572** | **96,119** | **(21,226)** | **1,683,884** | **2,640,231** | **25,220** | **2,665,451** | [132](index=132&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=43&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) Condensed Consolidated Statement of Cash Flows (RMB thousands) | Item | June 30, 2025 (Unaudited) | June 30, 2024 (Audited) | | :--- | :--- | :--- | | **Net Cash Flows from Operating Activities** | **182,637** | **38,017** | | Profit Before Tax | 159,748 | 80,995 | | Cash Generated from Operations | 189,518 | 76,904 | | Income Tax Paid | (12,597) | (47,287) | | Interest Received | 5,716 | 8,400 | | **Net Cash Flows Used in Investing Activities** | **(73,616)** | **(101,111)** | | Purchase of Property, Plant and Equipment Items | (43,234) | (77,171) | | Purchase of Deposits with Original Maturity Over 3 Months at Acquisition | (440,691) | (133,307) | | Proceeds from Maturity of Deposits with Original Maturity Over 3 Months at Acquisition | 390,894 | 119,891 | | **Net Cash Flows from / (Used in) Financing Activities** | **456,139** | **(322,279)** | | Proceeds from Issuance of Shares | 478,705 | – | | Repayment of Interest-bearing Bank Borrowings | (88,167) | (149,388) | | Dividends Paid | (59,724) | (136,824) | | **Net Increase / (Decrease) in Cash and Cash Equivalents** | **565,160** | **(385,373)** | | Cash and Cash Equivalents at Beginning of Year / Period | 711,062 | 1,062,110 | | **Cash and Cash Equivalents at End of Year / Period** | **1,275,834** | **666,029** | [136](index=136&type=chunk)[137](index=137&type=chunk)[139](index=139&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=46&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) [Company Information](index=46&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) This note reiterates Xiamen Jihong Technology Co, Ltd's establishment date, listing history, headquarters address, and primary operating activities, namely cross-border social e-commerce and the production and sale of eco-friendly packaging, also noting Ms. Zhuang Hao as the controlling shareholder - The company was established on December **24**, **2003**, listed on A-shares in **2016**, and on H-shares on May **27**, **2025**[140](index=140&type=chunk) - The main operating activities are cross-border social e-commerce business and the production and sale of eco-friendly and food packaging[140](index=140&type=chunk) - The Group's controlling shareholder and ultimate controlling shareholder is the natural person shareholder Ms. Zhuang Hao[141](index=141&type=chunk) [Basis of Presentation and Principal Accounting Policies](index=46&type=section&id=%E5%91%88%E5%88%97%E5%9F%BA%E6%BA%96%E5%8F%8A%E4%B8%BB%E8%A6%81%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The interim financial information is prepared in accordance with International Accounting Standard **34**, adopting the historical cost convention, with certain financial assets measured at fair value - The interim financial information is prepared in accordance with International Accounting Standard No. **34**[142](index=142&type=chunk) - The historical cost convention is adopted, except for equity investments at fair value through other comprehensive income, financial assets at fair value through profit or loss, and certain time deposits[142](index=142&type=chunk) [Operating Segment Information](index=47&type=section&id=%E7%B6%93%E7%87%9F%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group is divided into three reportable segments based on products and services: e-commerce, packaging, and others, with management separately managing the operating results of each segment and providing financial information for each - The Group has three reportable segments: e-commerce business, packaging business, and other businesses[144](index=144&type=chunk)[146](index=146&type=chunk) [Basis for Determining Reportable Segments and Accounting Policies](index=47&type=section&id=%E5%A0%B1%E5%91%8A%E5%88%86%E9%83%A8%E7%9A%84%E7%A2%BA%E5%AE%9A%E4%BE%9D%E6%93%9A%E8%88%87%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) - Segment results are evaluated based on adjusted profit from continuing operations, excluding interest income, finance costs, dividend income, etc[144](index=144&type=chunk) - Segment assets and liabilities do not include deferred income tax assets, borrowings, etc., which are managed centrally by the Group[144](index=144&type=chunk) [Financial Information of Reportable Segments](index=48&type=section&id=%E5%A0%B1%E5%91%8A%E5%88%86%E9%83%A8%E7%9A%84%E8%B2%A1%E5%8B%99%E4%BF%A1%E6%81%AF) Financial Information of Reportable Segments for the Six Months Ended June 30, 2025 (RMB thousands) | Item | E-commerce Business | Packaging Business | Other Businesses | Inter-segment Eliminations | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue from External Customers | 2,116,454 | 1,115,164 | 1,908 | – | 3,233,526 | | Segment Results | 83,439 | 183,015 | (3,316) | – | 263,138 | | Total Profit | – | – | – | – | 159,748 | | Total Assets | – | – | – | – | 4,064,948 | | Total Liabilities | – | – | – | – | 1,399,497 | [147](index=147&type=chunk) Financial Information of Reportable Segments for the Six Months Ended June 30, 2024 (RMB thousands) | Item | E-commerce Business | Packaging Business | Other Businesses | Inter-segment Eliminations | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue from External Customers | 1,384,122 | 1,013,388 | 55,954 | – | 2,453,464 | | Segment Results | 27,575 | 209,683 | (5,837) | – | 231,421 | | Total Profit | – | – | – | – | 80,995 | | Total Assets | – | – | – | – | 3,085,495 | | Total Liabilities | – | – | – | – | 930,543 | [149](index=149&type=chunk) [Revenue](index=50&type=section&id=%E6%94%B6%E5%85%A5) This section details the disaggregation of revenue from customer contracts, including by type of goods or services and by geographical region, and explains the timing of satisfaction of performance obligations - In the first half of **2025**, total revenue from customer contracts was **RMB 3,233,526 thousand**, primarily from cross-border social e-commerce and paper-based packaging businesses[150](index=150&type=chunk) - Revenue disaggregated by geographical region shows **RMB 959,326 thousand** from Mainland China and **RMB 2,274,200 thousand** from other countries or regions[154](index=154&type=chunk) [Disaggregation of Revenue Information](index=50&type=section&id=%E6%94%B6%E7%9B%8A%E8%B3%87%E6%96%99%E5%8A%83%E5%88%86) Revenue from Customer Contracts by Type of Goods or Services for the Six Months Ended June 30, 2025 (RMB thousands) | Segment | Cross-border Social E-commerce | Paper-based Packaging | Others | Total | | :--- | :--- | :--- | :--- | :--- | | Cross-border Social E-commerce | 2,116,454 | – | – | 2,116,454 | | Paper-based Packaging | – | 1,115,164 | – | 1,115,164 | | Others | – | – | 1,908 | 1,908 | | **Total Revenue from Customer Contracts** | **2,116,454** | **1,115,164** | **1,908** | **3,233,526** | [150](index=150&type=chunk) Revenue by Geographical Region (RMB thousands) | Geographical Region | 2025 | 2024 | | :--- | :--- | :--- | | Mainland China | 959,326 | 1,008,954 | | Other Countries or Regions | 2,274,200 | 1,444,510 | | **Total** | **3,233,526** | **2,453,464** | [154](index=154&type=chunk) [Performance Obligations](index=52&type=section&id=%E5%B1%A5%E7%B4%84%E7%BE%A9%E5%8B%99) - Performance obligations for product sales are satisfied when the customer accepts the product, with contract prices typically settled within **30** to **90** days after delivery, while cross-border social e-commerce uses online platform prepayment or cash on delivery[155](index=155&type=chunk) - Performance obligations for service provision are satisfied upon completion and acceptance by the customer, with contract prices typically paid within **30** to **90** days[156](index=156&type=chunk) [Other Income and Gains, Other Expenses and Losses](index=53&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A%E3%80%81%E5%85%B6%E4%BB%96%E9%96%8B%E6%94%AF%E5%8F%8A%E虧%E6%90%8D) This section presents other income and gains for the reporting period, primarily including government grants and bank interest income, as well as other expenses and losses, mainly investment losses from the deregistration of an associate Other Income and Gains (RMB thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Government Grants | 12,191 | 19,681 | | Bank Interest Income | 5,716 | 8,400 | | Gains on Financial Assets at FVTPL | 3,884 | 1,333 | | **Total Other Income and Gains** | **23,569** | **32,336** | [158](index=158&type=chunk) Other Expenses and Losses (RMB thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Investment Loss from Deregistration of Subsidiary | 2,379 | – | | Loss on Disposal of Subsidiary | – | 553 | | Others | 762 | 404 | | **Total Other Expenses and Losses** | **3,141** | **957** | [159](index=159&type=chunk) [Finance Costs](index=54&type=section&id=%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) This section analyzes finance costs for the reporting period, primarily comprising bank borrowing interest, lease liabilities interest, and factoring fees Finance Costs Analysis (RMB thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Bank Borrowing Interest | 3,898 | 2,864 | | Lease Liabilities Interest | 2,426 | 2,249 | | Factoring Fees | 285 | 905 | | **Total** | **6,608** | **6,018** | [160](index=160&type=chunk) [Income Tax](index=55&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85) This section outlines the income tax policies for the company and its subsidiaries in China and Hong Kong, including preferential tax rates for high-tech enterprises, encouraged industries in western regions, and small and micro enterprises, as well as Hong Kong's two-tiered profits tax system - Chinese subsidiaries' corporate income tax rate is **25%**, with some high-tech enterprises enjoying a **15%** preferential tax rate[163](index=163&type=chunk) - Hong Kong profits tax is calculated at **16.5%**, with eligible enterprises paying **8.25%** on the first **HKD 2,000,000** of assessable profits[166](index=166&type=chunk) Income Tax Expense (RMB thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Current Income Tax | 23,322 | 14,640 | | Deferred Tax | (209) | 366 | | **Total** | **23,113** | **15,006** | [167](index=167&type=chunk) [Dividends](index=56&type=section&id=%E8%82%A1%E6%81%AF) This section discloses the dividends declared to ordinary equity holders of the parent company during the reporting period, including profit distribution plans for **2024** and **2023** - On April **1**, **2025**, shareholders approved the **2024** profit distribution plan, with a dividend of **RMB 0.16** per share, totaling **RMB 59,757,000**[168](index=168&type=chunk) - On April **22**, **2024**, shareholders approved the **2023** profit distribution plan, with a dividend of **RMB 0.36** per share, totaling **RMB 136,824,000**[168](index=168&type=chunk) [Earnings Per Share Attributable to Ordinary Equity Holders of the Parent](index=56&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E6

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之內容概不負 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 就 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之任何損失承擔任何責任。 XIAMEN JIHONG CO., LTD 廈門吉宏科技股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：2603） （「本公司」） 海外監管公告 本公告乃根據香港聯合交易所有限公司證券上市規則第13.10B條而做出。 茲載列廈門吉宏科技股份有限公司於巨潮資訊網(www.cninfo.com.cn)刊登的公告 如下，僅供參閱。 承董事會命 廈門吉宏科技股份有限公司 執行董事兼總經理 莊浩女士 香港，2025年8月21日 於本公告日期，董事會成員包括(i)執行董事王亞朋先生、莊浩女士、張和平先生、 莊 澍 先 生 及 陸 它 山 先 生，(ii)非 執 行 董 事 廖 生 興 先 生，及(iii)獨立非執行董事 張國清博士、楊晨暉博士、薛永恒教授、韓建書先生及吳永蒨女士。 厦门吉宏科技股份有限公司 Xiamen Jihong C ...

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之內容概不負 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 就 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之任何損失承擔任何責任。 於本公告日期，董事會成員包括(i)執行董事王亞朋先生、莊浩女士、張和平先生、 莊 澍 先 生 及 陸 它 山 先 生，(ii)非 執 行 董 事 廖 生 興 先 生，及(iii)獨立非執行董事 張國清博士、楊晨暉博士、薛永恒教授、韓建書先生及吳永蒨女士。 XIAMEN JIHONG CO., LTD 廈門吉宏科技股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：2603） （「本公司」） 海外監管公告 本公告乃根據香港聯合交易所有限公司證券上市規則第13.10B條而做出。 茲載列廈門吉宏科技股份有限公司於巨潮資訊網(www.cninfo.com.cn)刊登的公告 如下，僅供參閱。 承董事會命 廈門吉宏科技股份有限公司 執行董事兼總經理 莊浩女士 香港，2025年8月21日 厦门吉宏科技股份有限公司 2025 年 1-6 月非经营 ...

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之內容概不負 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 就 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之任何損失承擔任何責任。 XIAMEN JIHONG CO., LTD 廈門吉宏科技股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：2603） （「本公司」） 海外監管公告 本公告乃根據香港聯合交易所有限公司證券上市規則第13.10B條而做出。 茲載列廈門吉宏科技股份有限公司於巨潮資訊網(www.cninfo.com.cn)刊登的公告 如下，僅供參閱。 一、召开会议的基本情况 承董事會命 廈門吉宏科技股份有限公司 執行董事兼總經理 莊浩女士 香港，2025年8月21日 於本公告日期，董事會成員包括(i)執行董事王亞朋先生、莊浩女士、張和平先生、 莊 澍 先 生 及 陸 它 山 先 生，(ii)非 執 行 董 事 廖 生 興 先 生，及(iii)獨立非執行董事 張國清博士、楊晨暉博士、薛永恒教授、韓建書先生及吳永蒨女士。 证券代码：002803 证券简称 ...

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之內容概不負 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 就 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之任何損失承擔任何責任。 XIAMEN JIHONG CO., LTD 廈門吉宏科技股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：2603） （「本公司」） 海外監管公告 本公告乃根據香港聯合交易所有限公司證券上市規則第13.10B條而做出。 茲載列廈門吉宏科技股份有限公司於巨潮資訊網(www.cninfo.com.cn)刊登的公告 如下，僅供參閱。 承董事會命 廈門吉宏科技股份有限公司 執行董事兼總經理 莊浩女士 香港，2025年8月21日 於本公告日期，董事會成員包括(i)執行董事王亞朋先生、莊浩女士、張和平先生、 莊 澍 先 生 及 陸 它 山 先 生，(ii)非 執 行 董 事 廖 生 興 先 生，及(iii)獨立非執行董事 張國清博士、楊晨暉博士、薛永恒教授、韓建書先生及吳永蒨女士。 证券代码：002803 证券简称：吉宏股份 公告编号：2 ...

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之內容概不負 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 就 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之任何損失承擔任何責任。 XIAMEN JIHONG CO., LTD 廈門吉宏科技股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：2603） （「本公司」） 海外監管公告 本公告乃根據香港聯合交易所有限公司證券上市規則第13.10B條而做出。 茲載列廈門吉宏科技股份有限公司於巨潮資訊網(www.cninfo.com.cn)刊登的公告 如下，僅供參閱。 承董事會命 廈門吉宏科技股份有限公司 執行董事兼總經理 莊浩女士 香港，2025年8月21日 於本公告日期，董事會成員包括(i)執行董事王亞朋先生、莊浩女士、張和平先生、 莊 澍 先 生 及 陸 它 山 先 生，(ii)非 執 行 董 事 廖 生 興 先 生，及(iii)獨立非執行董事 張國清博士、楊晨暉博士、薛永恒教授、韓建書先生及吳永蒨女士。 证券代码：002803 证券简称：吉宏股份 公告编号：2 ...

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之內容概不負 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 就 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之任何損失承擔任何責任。 XIAMEN JIHONG CO., LTD 廈門吉宏科技股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：2603） （「本公司」） 海外監管公告 本公告乃根據香港聯合交易所有限公司證券上市規則第13.10B條而做出。 茲載列廈門吉宏科技股份有限公司於巨潮資訊網(www.cninfo.com.cn)刊登的公告 如下，僅供參閱。 承董事會命 廈門吉宏科技股份有限公司 執行董事兼總經理 莊浩女士 本公司及全体董事保证本公告内容真实、准确和完整，没有虚假记载、误 导性陈述或者重大遗漏。 一、审议程序 厦门吉宏科技股份有限公司（以下简称"公司"）于 2025 年 8 月 20 日召开 第五届董事会第三十次会议，会议审议通过《关于公司 2025 年半年度利润分配 预案的议案》，该议案尚需提交公司 2025 年第二次临时股东会审议通过后方 ...

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之內容概不負 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 就 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之任何損失承擔任何責任。 XIAMEN JIHONG CO., LTD 廈門吉宏科技股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：2603） （「本公司」） 海外監管公告 本公告乃根據香港聯合交易所有限公司證券上市規則第13.10B條而做出。 茲載列廈門吉宏科技股份有限公司於巨潮資訊網(www.cninfo.com.cn)刊登的公告 如下，僅供參閱。 承董事會命 廈門吉宏科技股份有限公司 執行董事兼總經理 莊浩女士 香港，2025年8月21日 於本公告日期，董事會成員包括(i)執行董事王亞朋先生、莊浩女士、張和平先生、 莊 澍 先 生 及 陸 它 山 先 生，(ii)非 執 行 董 事 廖 生 興 先 生，及(iii)獨立非執行董事 張國清博士、楊晨暉博士、薛永恒教授、韓建書先生及吳永蒨女士。 厦门吉宏科技股份有限公司 2025 年半年度报告摘要 证 ...

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之內容概不負 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 就 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之任何損失承擔任何責任。 XIAMEN JIHONG CO., LTD 廈門吉宏科技股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：2603） （「本公司」） 海外監管公告 本公告乃根據香港聯合交易所有限公司證券上市規則第13.10B條而做出。 茲載列廈門吉宏科技股份有限公司於巨潮資訊網(www.cninfo.com.cn)刊登的公告 如下，僅供參閱。 承董事會命 廈門吉宏科技股份有限公司 執行董事兼總經理 莊浩女士 香港，2025年8月21日 於本公告日期，董事會成員包括(i)執行董事王亞朋先生、莊浩女士、張和平先生、 莊 澍 先 生 及 陸 它 山 先 生，(ii)非 執 行 董 事 廖 生 興 先 生，及(iii)獨立非執行董事 張國清博士、楊晨暉博士、薛永恒教授、韓建書先生及吳永蒨女士。 厦门吉宏科技股份有限公司 2025 年半年度报告全文 厦 ...