Contents 目錄 | Consolidated Statement of Profit or Loss and | 合併損益及其他綜合收益表 | | | --- | --- | --- | | Other Comprehensive Income | | 2 | | Consolidated Statement of Financial Position | 合併財務狀況表 | 3 | | Consolidated Statement of Changes in Equity | 合併權益變動表 | 5 | | Condensed Consolidated Statement of Cash Flows | 簡明合併現金流量表 | 6 | | Notes to the Unaudited Interim Financial Report | 未經審核中期財務報告附註 | 7 | | Management Discussion and Analysis | 管理層討論及分析 | 16 | | Disclosure of Additional Information | 其他資料的披露 | 24 | | C ...

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 公司名稱: 中國澱粉控股有限公司 呈交日期: 2025年9月2日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 03838 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | HKD | | 0.1 | HKD | | 1,000,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 10,000,000,000 | HKD | | 0.1 | HKD | | 1,000,000,000 | 本月底法 ...

Core Viewpoint - China Starch (03838) experienced a significant decline of over 8% in its stock price, attributed to disappointing mid-term results for 2025, which showed a decrease in both revenue and profit [1] Financial Performance - The company reported a revenue of 5.115 billion yuan, representing a year-on-year decrease of 9.4% [1] - Profit attributable to shareholders was 151 million yuan, down 29.47% compared to the previous year [1] Market Conditions - The decline in revenue was primarily due to a decrease in the average selling price of the company's products and a reduction in total sales volume [1] - The price of corn kernels, a key raw material, has significantly increased, adding pressure on the company's cost structure [1] - The company faced challenges from both declining product prices and rising raw material costs, which adversely affected gross profit and profit margins [1]

Core Viewpoint - China Starch (03838) experienced a significant decline of over 8% in its stock price, attributed to disappointing mid-term results for 2025, which showed a decrease in both revenue and profit [1] Financial Performance - The company reported a revenue of 5.115 billion RMB for the period, representing a year-on-year decrease of 9.4% [1] - The profit attributable to the company's owners was 151 million RMB, down 29.47% compared to the previous year [1] Market Conditions - The decline in revenue was primarily due to a decrease in the average selling price of the company's products and a reduction in total sales volume [1] - The price of corn kernels, a key raw material, has significantly increased, adding pressure on the company's cost structure [1] - The company faced challenges from both product price reductions and substantial increases in raw material costs, leading to a decrease in gross profit and significant pressure on profit margins [1]

Core Viewpoint - China Starch (03838.HK) reported a revenue of approximately 5.115 billion RMB for the six months ending June 30, 2025, representing a year-on-year decrease of 9.4% [1] - The profit attributable to the company's owners was about 151 million RMB, down 29.5% year-on-year, with earnings per share at 0.0254 RMB [1] - The company will not declare an interim dividend [1] Financial Performance - Revenue for the period was approximately 5.115 billion RMB, a decrease of 9.4% compared to the previous year [1] - Profit attributable to owners was approximately 151 million RMB, reflecting a decline of 29.5% year-on-year [1] - Earnings per share stood at 0.0254 RMB [1] - The company has decided not to distribute an interim dividend [1]

Core Viewpoint - China Starch (03838) reported a revenue of 5.115 billion RMB for the six months ending June 30, 2025, representing a year-on-year decrease of 9.4% [1] - The company's attributable profit was 151 million RMB, down 29.47% year-on-year, with basic earnings per share at 0.0254 RMB [1] Revenue and Profit Analysis - The decline in revenue was primarily due to a decrease in the average selling price of products and total sales volume [1] - The significant increase in the market price of corn kernels, a key raw material, contributed to the financial pressures faced by the company [1] Margin and Cost Pressure - The company experienced downward pressure on product prices and a substantial rise in raw material costs, leading to a reduction in gross profit [1] - The gross profit for the six months ending June 30, 2025, was 429 million RMB, compared to 507 million RMB in 2024 [1]

Core Viewpoint - China Starch (03838.HK) reported a decline in mid-term performance, with revenue decreasing by 9.40% year-on-year to RMB 5.115 billion, and net profit attributable to shareholders dropping by 29.47% to RMB 151 million [1] Financial Performance - Revenue for the period was RMB 5.115 billion, a decrease of 9.40% compared to the previous year [1] - Net profit attributable to shareholders was RMB 151 million, down 29.47% year-on-year [1] - Basic earnings per share were RMB 0.0254 [1] Market Conditions - The decline in revenue was primarily due to a decrease in the average selling price of the company's products and a reduction in total sales volume [1] - The price of corn kernels, a key raw material, significantly increased during the period [1] Profitability Challenges - The company faced pressure from both declining product prices and rising raw material costs, leading to a reduction in gross profit [1] - These adverse changes have significantly impacted the company's profit margins [1]

CHINA STARCH HOLDINGS LIMITED 中國澱粉控股有限公司 董事會提名委員會職權範圍 Terms of Reference of the Nomination Committee of the Board of Directors Version: 8/2025 China Starch Holdings Limited (the "Company") 中國澱粉控股有限公司(「本公司」) -------------------------------------------------- Terms of Reference of the Nomination Committee (the "Committee") of the Board of Directors (the "Board") of the Company 本公司董事會(「董事會」) 提名委員會(「委員會」)職權範圍 (中文本爲翻譯稿，僅供參考用) 1.1 The Committee is established pursuant to a resolution passed by the Board at its me ...

[Corporate Information and Announcements](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF%E4%B8%8E%E5%85%AC%E5%91%8A%E5%A3%B0%E6%98%8E) [Disclaimer](index=1&type=section&id=%E5%85%AC%E5%91%8A%E5%A3%B0%E6%98%8E) The Hong Kong Exchanges and Clearing Limited disclaims responsibility for this announcement's content and any loss arising from reliance upon it[1](index=1&type=chunk) [Corporate Information](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E4%BF%A1%E6%81%AF) China Starch Holdings Limited (Stock Code: 3838) announces its unaudited consolidated interim results for the six months ended June 30, 2025[2](index=2&type=chunk)[3](index=3&type=chunk) [Consolidated Financial Statements](index=1&type=section&id=%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=%E5%90%88%E5%B9%B6%E6%8D%9F%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E7%BB%BC%E5%90%88%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the Group's revenue decreased by 9.4% to RMB 5.115 billion, with profit for the period declining by 15.7% Key Data from Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | For the six months ended June 30, 2025 (RMB'000) | For the six months ended June 30, 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 5,114,852 | 5,645,514 | -9.4% | | Cost of sales | (4,686,096) | (5,138,334) | -8.8% | | Gross profit | 428,756 | 507,180 | -15.4% | | Operating profit | 279,725 | 342,483 | -18.3% | | Profit before tax | 297,133 | 355,294 | -16.4% | | Profit and total comprehensive income for the period | 225,636 | 267,482 | -15.7% | | Profit attributable to owners of the Company | 151,390 | 214,659 | -29.5% | | Basic and diluted earnings per share (RMB) | 0.0254 | 0.0360 | -29.4% | [Consolidated Statement of Financial Position](index=2&type=section&id=%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5%E8%A1%A8) As of June 30, 2025, the Group's total assets remained stable at RMB 6.96 billion while total liabilities decreased, indicating an optimized financial structure Key Data from Consolidated Statement of Financial Position | Metric | As at June 30, 2025 (RMB'000) | As at December 31, 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Total non-current assets | 2,490,059 | 2,539,526 | -1.9% | | Total current assets | 4,469,492 | 4,419,363 | +1.1% | | **Total assets** | **6,959,551** | **6,958,889** | **+0.01%** | | **Equity** | | | | | Equity attributable to owners of the Company | 4,204,055 | 4,105,970 | +2.4% | | Non-controlling interests | 448,431 | 387,685 | +15.7% | | **Total equity** | **4,652,486** | **4,493,655** | **+3.5%** | | **Liabilities** | | | | | Total non-current liabilities | 214,568 | 306,648 | -30.0% | | Total current liabilities | 2,092,497 | 2,158,586 | -3.0% | | **Total liabilities** | **2,307,065** | **2,465,234** | **-6.4%** | - Borrowings under non-current liabilities were reduced to **zero** as of June 30, 2025, from RMB 59,267 thousand at the end of 2024[4](index=4&type=chunk) [Notes to the Financial Statements](index=4&type=section&id=%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%99%84%E6%B3%A8) [Basis of Preparation](index=4&type=section&id=%E7%BC%96%E8%A3%BD%E5%9F%BA%E6%BA%96) The interim financial statements are prepared in accordance with HKAS 34 and the Listing Rules, using accounting policies consistent with the 2024 annual report - The condensed consolidated interim financial statements are prepared in accordance with the Listing Rules of The Stock Exchange of Hong Kong Limited and HKAS 34[6](index=6&type=chunk) - The statements are presented in RMB and prepared under the historical cost convention, as modified by the revaluation of certain financial assets and liabilities[6](index=6&type=chunk) [Adoption of New/Revised Hong Kong Financial Reporting Standards (HKFRSs)](index=4&type=section&id=%E6%8E%A1%E7%B4%8D%E6%96%B0%E8%A8%82%E2%95%B1%E7%B6%93%E4%BF%AE%E8%A8%82%E9%A6%99%E6%B8%AF%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%BA%96%E5%89%87) The Group adopted an amendment to HKAS 21 in 2025, which had no material impact on its financial position or performance - The Group adopted the amendment to HKAS 21 "Lack of Exchangeability" in 2025[7](index=7&type=chunk) - The amendment did not have any impact on the Group's results and financial position[7](index=7&type=chunk) [Segment Information](index=4&type=section&id=%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group operates two segments, with upstream product performance declining significantly while fermentation and downstream product performance improved External Sales and Performance by Segment | Segment | For the six months ended June 30, 2025 (RMB'000) | For the six months ended June 30, 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | **External Sales** | | | | | Upstream products | 3,149,725 | 3,524,090 | -10.7% | | Fermentation and downstream products | 1,965,127 | 2,121,424 | -7.4% | | **Total** | **5,114,852** | **5,645,514** | **-9.4%** | | **Reportable Segment Performance** | | | | | Upstream products | 5,607 | 98,337 | -94.3% | | Fermentation and downstream products | 295,113 | 255,951 | +15.3% | | **Total** | **300,720** | **354,288** | **-15.1%** | [Other Net Income](index=5&type=section&id=%E5%85%B6%E4%BB%96%E6%B7%A8%E6%94%B6%E5%85%A5) Other net income decreased by 13.9% to RMB 49.4 million, primarily due to an increased loss on the disposal of property, plant, and equipment Breakdown of Other Net Income | Item | For the six months ended June 30, 2025 (RMB'000) | For the six months ended June 30, 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Amortisation of government grants | 37,530 | 38,977 | -3.7% | | Gain on sales of scrap materials | 12,855 | 14,611 | -12.0% | | Net foreign exchange gain | 2,644 | 4,265 | -38.0% | | Loss on disposal of property, plant and equipment | (6,216) | (512) | +1114.1% | | Government grants | 253 | 131 | +93.1% | | Gain on futures | – | 333 | -100.0% | | Others | 2,371 | (389) | +709.0% | | **Total** | **49,437** | **57,416** | **-13.9%** | [Profit Before Tax](index=5&type=section&id=%E9%99%A4%E7%A8%85%E5%89%8D%E5%88%A9%E6%BD%A4) The Group's profit before tax was RMB 297.1 million, with notable changes in major expenses including a significant decrease in research costs Breakdown of Major Expenses | Item | For the six months ended June 30, 2025 (RMB'000) | For the six months ended June 30, 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Cost of inventories | 4,018,342 | 4,465,085 | -10.0% | | Salaries and other related expenses | 153,658 | 136,605 | +12.5% | | Depreciation of property, plant and equipment | 134,737 | 136,663 | -1.4% | | Depreciation of right-of-use assets | 5,185 | 5,185 | 0.0% | | Delivery and logistics | 46,767 | 65,622 | -28.7% | | Research expenses | 20,731 | 43,689 | -52.6% | - Research expenses include the cost of inventories, staff costs of the R&D department, and depreciation[10](index=10&type=chunk) [Income Tax Expense](index=5&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense decreased by 18.6% to RMB 71.5 million, mainly due to a reversal of deferred tax liabilities and over-provision in prior years Breakdown of Income Tax Expense | Item | For the six months ended June 30, 2025 (RMB'000) | For the six months ended June 30, 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Current income tax - PRC Enterprise Income Tax | 80,797 | 45,298 | +78.4% | | Over-provision in prior years | (4,933) | – | N/A | | Deferred tax | (4,367) | 42,514 | -110.3% | | **Total** | **71,497** | **87,812** | **-18.6%** | - The enterprise income tax rate for PRC subsidiaries is **25%**, with a preferential rate of **15%** for high-tech enterprises[11](index=11&type=chunk) - The PRC withholding tax rate was reduced from **10%** in 2024 to **5%** in 2025[12](index=12&type=chunk) [Earnings Per Share](index=6&type=section&id=%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) Basic earnings per share for the period decreased by 29.4% to RMB 0.0254, with no diluted EPS presented due to the absence of dilutive shares Calculation of Earnings Per Share | Metric | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Profit attributable to owners of the Company (RMB'000) | 151,390 | 214,659 | -29.5% | | Weighted average number of ordinary shares in issue ('000) | 5,964,492 | 5,965,532 | -0.02% | | **Basic earnings per share (RMB)** | **0.0254** | **0.0360** | **-29.4%** | - No diluted earnings per share was presented as there were no potential dilutive ordinary shares in either period[13](index=13&type=chunk) [Dividends](index=6&type=section&id=%E8%82%A1%E6%81%AF) The Board does not recommend an interim dividend for the first half of 2025, but a final dividend for 2024 was approved in May 2025 - The Board does not recommend the payment of an interim dividend for H1 2025 (H1 2024: Nil)[14](index=14&type=chunk) - On May 20, 2025, shareholders approved a final dividend of **HK 0.98 cents** per share for 2024 (2023: HK 0.69 cents)[14](index=14&type=chunk) [Trade and Other Receivables](index=6&type=section&id=%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE) Total trade and other receivables increased by 22.1% to RMB 535.3 million, driven by higher trade receivables and prepayments Breakdown of Trade and Other Receivables | Item | As at June 30, 2025 (RMB'000) | As at December 31, 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Trade receivables | 157,110 | 82,970 | +89.4% | | Bills receivable - bank acceptance | 274,145 | 280,774 | -2.4% | | Prepayments and other tax receivables | 94,217 | 52,993 | +77.8% | | Others | 9,853 | 21,602 | -54.3% | | **Total** | **535,325** | **438,339** | **+22.1%** | Ageing Analysis of Trade Receivables | Ageing | As at June 30, 2025 (RMB'000) | As at December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | 0 to 30 days | 152,266 | 75,434 | | 31 to 60 days | 4,844 | 7,190 | | 61 to 90 days | – | 346 | | **Total** | **157,110** | **82,970** | - The Group generally grants a credit period of 0 to 150 days to its customers[15](index=15&type=chunk) [Trade and Other Payables](index=7&type=section&id=%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE) Total trade and other payables decreased by 4.3% to RMB 345.3 million, mainly due to the settlement of notes payable and lower other tax payables Breakdown of Trade and Other Payables | Item | As at June 30, 2025 (RMB'000) | As at December 31, 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Trade payables | 154,180 | 157,694 | -2.2% | | Notes payable | – | 2,000 | -100.0% | | Payables for construction and equipment | 56,335 | 60,639 | -7.0% | | Salaries and welfare payables | 48,978 | 43,806 | +11.8% | | Accrued expenses | 32,878 | 42,555 | -22.7% | | Other tax payables | 12,876 | 24,665 | -47.8% | | Tender deposits | 31,982 | 20,757 | +54.1% | | **Total** | **345,263** | **360,653** | **-4.3%** | Ageing Analysis of Trade and Notes Payables | Ageing | As at June 30, 2025 (RMB'000) | As at December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | 0 to 60 days | 133,346 | 134,654 | | 61 to 90 days | 1,120 | 2,164 | | Over 90 days | 19,714 | 22,876 | | **Total** | **154,180** | **159,694** | - The average credit period for purchases is 80 days[18](index=18&type=chunk) [Management Discussion and Analysis](index=8&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) [Industry Overview and Corporate Development](index=8&type=section&id=%E8%A1%8C%E6%A5%AD%E6%A6%82%E8%A6%BD%E5%8F%8A%E5%85%AC%E5%8F%B8%E7%99%BC%E5%B1%95) The Group faced economic headwinds, intense market competition, and margin pressure from rising corn costs but maintains a stable financial position - In H1 2025, the domestic economy faced challenges with sluggish demand and ongoing Sino-US trade disputes, leading to market oversupply and downward price pressure[20](index=20&type=chunk) - The corn starch and deep processing industry saw stable capacity but faced intensified competition from low-cost imported tapioca starch and weak demand from the feed and breeding sectors[20](index=20&type=chunk) - Domestic corn prices rose steadily, but prices for corn starch and related products remained low due to weak demand, leading to **margin contraction**[21](index=21&type=chunk) - The Group's financial position remains **stable with sufficient funds**, and management has adopted a prudent strategy to control costs and improve operational efficiency[21](index=21&type=chunk) - The Linqing production base expansion project was delayed until early August due to permit approvals but is not expected to affect the 2026 trial production schedule[21](index=21&type=chunk) - The expansion project involved dismantling existing facilities, resulting in a **higher loss on disposal of obsolete equipment** in H1, with no significant further losses expected in H2[22](index=22&type=chunk) [Business Review](index=9&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The upstream segment faced multiple pressures while the downstream segment saw improved gross profit despite lower revenue, driven by strategic shifts - **Upstream products (corn starch)** faced pressure from rising corn kernel prices due to lower imports, falling prices of substitutes like wheat/tapioca starch, and industry capacity expansion[23](index=23&type=chunk) - The **fermentation and downstream products** segment saw an overall revenue decline but improved gross profit through strategic adjustments and solid performance of new bio-based materials[24](index=24&type=chunk) - The **lysine business** strategically shifted its sales focus from overseas to domestic channels due to an anti-dumping investigation in China[24](index=24&type=chunk) - The **starch sugar business** faced challenges from weak demand in the catering industry and intensified competition from industry capacity expansion, pressuring profitability[24](index=24&type=chunk) - The **modified starch business** experienced a significant decrease in sales volume, mainly due to stricter wastewater control measures[24](index=24&type=chunk) - The **new bio-based materials business** performed satisfactorily, achieving growth by expanding its distribution network, attracting new customers, and launching new products[24](index=24&type=chunk) [Financial Performance](index=9&type=section&id=%E8%B2%A1%E5%8B%99%E8%A1%A8%E7%8F%BE) The Group's revenue and gross profit declined by 9.4% and 15.4% respectively, pressured by lower sales volume and rising raw material costs - The Group's revenue decreased to **RMB 5,114,852,000 (down 9.4% YoY)**, mainly due to a decline in both average selling prices and total sales volume[25](index=25&type=chunk) - A significant increase in the market price of corn kernels (the main raw material) led to a decrease in gross profit to **RMB 428,756,000 (down 15.4% YoY)**, putting significant pressure on profit margins[25](index=25&type=chunk) - Profit before tax was **RMB 297,133,000 (down 16.4% YoY)**, and profit after tax was **RMB 225,636,000 (down 15.7% YoY)**[25](index=25&type=chunk) [Segment Performance: Upstream Products](index=10&type=section&id=%E5%88%86%E9%83%A8%E8%A1%A8%E7%8F%BE%EF%BC%9A%E4%B8%8A%E6%B8%B8%E7%94%A2%E5%93%81) The upstream product segment's revenue and gross margin fell significantly due to rising corn costs, reduced demand, and competition from substitutes Upstream Products Segment Performance | Metric | For the six months ended June 30, 2025 (RMB'000) | For the six months ended June 30, 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 3,149,725 | 3,524,090 | -10.6% | | Gross Profit | 91,475 | 198,370 | -53.9% | | Gross Profit Margin | 2.9% | 5.6% | -2.7 p.p. | - Corn starch sales volume was approximately **856,500 tonnes** (2024: 891,288 tonnes), with an average selling price of approximately **RMB 2,465 per tonne** (2024: RMB 2,679 per tonne)[26](index=26&type=chunk) - Profitability was mainly affected by a significant increase in corn kernel costs, reduced market demand, and intensified competition from substitutes[26](index=26&type=chunk) [Segment Performance: Fermentation and Downstream Products](index=10&type=section&id=%E5%88%86%E9%83%A8%E8%A1%A8%E7%8F%BE%EF%BC%9A%E7%99%BC%E9%85%B5%E5%8F%8A%E4%B8%8B%E6%B8%B8%E7%94%A2%E5%93%81) The fermentation and downstream segment's revenue decreased by 7.4%, but its gross margin improved due to strategic adjustments and product mix changes Fermentation and Downstream Products Segment Performance | Metric | For the six months ended June 30, 2025 (RMB'000) | For the six months ended June 30, 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 1,965,127 | 2,121,424 | -7.4% | | Gross Profit | 337,281 | 308,810 | +9.2% | | Gross Profit Margin | 17.2% | 14.6% | +2.6 p.p. | Revenue Breakdown of Fermentation and Downstream Products | Product | For the six months ended June 30, 2025 (RMB'000) | For the six months ended June 30, 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Lysine | 1,553,051 | 1,605,963 | -3.3% | | Starch sugar | 222,607 | 247,926 | -10.3% | | Modified starch | 110,250 | 216,954 | -49.2% | | Others (incl. new bio-based materials) | 79,219 | 50,581 | +56.6% | - Domestic sales volume of lysine increased to **247,596 tonnes** (2024: 227,549 tonnes), while total sales volume rose slightly to approximately **275,187 tonnes** (2024: 273,256 tonnes), with the average selling price decreasing to **RMB 5,644 per tonne** (2024: RMB 5,877 per tonne)[28](index=28&type=chunk) - Both sales volume and average selling price of starch sugar decreased, with the proportion of liquid starch sugar rising to **81.7%**, leading to a lower overall average selling price[28](index=28&type=chunk) - Revenue from new bio-based materials and other products grew by **56.6%**, mainly benefiting from an enhanced distribution network[29](index=29&type=chunk) [Cost of Sales](index=11&type=section&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC) Total cost of sales decreased by 8.8% to RMB 4.69 billion, with the average purchase cost of corn kernels being lower than the prior period - Total cost of sales was approximately **RMB 4,686,096,000**, a year-on-year decrease of 8.8%[30](index=30&type=chunk) - The average purchase cost of corn kernels (net of VAT) was approximately **RMB 2,068 per tonne**, lower than H1 2024 (RMB 2,135) but higher than the H2 2025 forecast (RMB 2,040)[30](index=30&type=chunk) - The Group did not enter into any forward/futures contracts to hedge against corn kernel price fluctuations during the period[30](index=30&type=chunk) [Other Operational Review](index=11&type=section&id=%E5%85%B6%E4%BB%96%E7%87%9F%E9%81%8B%E5%9B%9E%E9%A1%A7) The Group saw significant changes in operating expenses, with distribution and research costs decreasing while administrative expenses increased [Distribution and Administrative Expenses](index=11&type=section&id=%E5%88%86%E9%8A%B7%E5%8F%8A%E8%A1%8C%E6%94%BF%E8%B2%BB%E7%94%A8) Distribution expenses fell by 22.6% due to lower sales volume, while administrative expenses rose by 18.5% driven by higher government levies Breakdown of Distribution Expenses | Item | For the six months ended June 30, 2025 (RMB'000) | For the six months ended June 30, 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Delivery and logistics | 46,767 | 65,622 | -28.7% | | Marketing expenses | 7,604 | 7,817 | -2.8% | | Staff costs | 5,624 | 5,116 | +9.9% | | Others | 3,709 | 3,663 | +1.3% | | **Total** | **63,704** | **82,218** | **-22.6%** | Breakdown of Administrative Expenses | Item | For the six months ended June 30, 2025 (RMB'000) | For the six months ended June 30, 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Staff costs | 60,077 | 52,629 | +14.1% | | Government levies | 22,147 | 13,434 | +64.9% | | Depreciation and amortisation | 18,090 | 17,677 | +2.3% | | Others | 13,719 | 12,466 | +10.1% | | **Total** | **114,033** | **96,206** | **+18.5%** | [Research Expenses](index=12&type=section&id=%E7%A0%94%E7%A9%B6%E8%B2%BB%E7%94%A8) Research expenses decreased substantially by 52.6% as the Group focused on developing production technology and proprietary techniques - Research expenses decreased significantly by **52.6%** from RMB 43,689,000 to RMB 20,731,000[34](index=34&type=chunk) - These expenses, mainly comprising material costs, depreciation, and staff costs, were focused on the development of production technology and proprietary techniques[34](index=34&type=chunk) [Other Net Income](index=12&type=section&id=%E5%85%B6%E4%BB%96%E6%B7%A8%E6%94%B6%E5%85%A5) Other net income decreased by 13.9% to RMB 49.4 million, mainly due to a significant loss on the disposal of equipment at the Linqing plant Breakdown of Other Net Income | Item | For the six months ended June 30, 2025 (RMB'000) | For the six months ended June 30, 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Amortisation of government grants | 37,530 | 38,977 | -3.7% | | Gain on sales of scrap materials | 12,855 | 14,611 | -12.0% | | Net exchange gain | 2,644 | 4,265 | -38.0% | | Loss on disposal of property, plant and equipment | (6,216) | (512) | +1114.1% | | Government grants (one-off) | 253 | 131 | +93.1% | | Gain on futures | – | 333 | -100.0% | | Others | 2,371 | (389) | +709.0% | | **Total** | **49,437** | **57,416** | **-13.9%** | - The decrease in other net income was mainly due to the loss on disposal arising from the dismantling of certain equipment at the Linqing production plant[35](index=35&type=chunk) [Liquidity, Financial Resources, and Capital Structure](index=12&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E3%80%81%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90%E5%8F%8A%E8%B3%87%E6%9C%AC%E6%9E%B6%E6%A7%8B) The Group maintained sufficient working capital and a sound financial structure, with a lower gearing ratio and slightly changed liquidity ratios Key Financial Performance Indicators | Metric | As at June 30, 2025 | As at December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Accounts receivable turnover (days) | 14 | 12 | +2 days | | Accounts payable turnover (days) | 8 | 5 | +3 days | | Inventory turnover (days) | 28 | 24 | +4 days | | Current ratio (times) | 2.1 | 2.0 | +0.1 | | Quick ratio (times) | 1.7 | 1.8 | -0.1 | | Gearing ratio - borrowings to total assets (%) | 20.1 | 21.3 | -1.2 p.p. | - The Group has sufficient working capital to meet its current requirements, and all borrowings are short-term[37](index=37&type=chunk) - Total bank borrowings of **RMB 1,337,864,000** are at fixed interest rates, and a loan from a controlling shareholder of **RMB 61,101,000** is at a fixed annual rate of 0.5%[37](index=37&type=chunk) [Human Resources and Remuneration Policy](index=12&type=section&id=%E4%BA%BA%E5%8A%9B%E8%B3%87%E6%BA%90%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) The Group reduced its headcount but increased total staff costs, implementing measures to optimize labor efficiency and retain talent - As of June 30, 2025, the Group employed **2,073 staff** (2024: 2,267), a decrease in headcount[38](index=38&type=chunk) - Total staff costs (including directors' remuneration) were approximately **RMB 153,658,000**, a year-on-year increase of 12.5%[38](index=38&type=chunk) - To cope with operational challenges, the Group implemented measures to optimize labor efficiency, support staff retention, increase reliance on automation, and introduce discretionary performance bonuses[38](index=38&type=chunk) - The remuneration review during the period involved an in-depth assessment, resulting in a **significant adjustment** to enhance morale and maintain market competitiveness[38](index=38&type=chunk) [Financial Management, Treasury Policy, and Foreign Exchange Risk](index=13&type=section&id=%E8%B2%A1%E5%8B%99%E7%AE%A1%E7%90%86%E3%80%81%E5%BA%AB%E5%8B%99%E6%94%BF%E7%AD%96%E5%8F%8A%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) There were no material changes to the Group's financial management, treasury policies, or foreign exchange risk exposure compared to the 2024 annual report[39](index=39&type=chunk) [Pledge of Assets](index=13&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group pledged bank deposits and bills receivable totaling RMB 1.138 billion as security for certain banking facilities - As of June 30, 2025, the Group pledged bank deposits and bills receivable with a total carrying value of **RMB 1,138,000,000** as security for banking facilities[40](index=40&type=chunk) - No land use rights or buildings were pledged as security for banking facilities during the period[40](index=40&type=chunk) [Contingent Liabilities](index=13&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) The Group had no significant contingent liabilities as of June 30, 2025[41](index=41&type=chunk) [Material Investments](index=13&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) The Group had no material investments or future plans for significant capital asset investments beyond its disclosed business development plans[42](index=42&type=chunk) [Other Disclosures](index=13&type=section&id=%E5%85%B6%E4%BB%96%E6%8A%AB%E9%9C%B2%E4%BA%8B%E9%A0%85) [Interim Dividend](index=13&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (2024: Nil)[43](index=43&type=chunk) [Purchase, Sale, or Redemption of the Company's Listed Securities](index=13&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) Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the period[44](index=44&type=chunk) [Corporate Governance](index=13&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The Company complied with the applicable code provisions of the Listing Rules, with the exception of the Chairman's absence from the 2025 AGM - The Company has complied with the applicable code provisions contained in Part 2 of Appendix C1 to the Listing Rules[45](index=45&type=chunk) - The Chairman, Mr Tian Qixiang, was unable to attend the 2025 Annual General Meeting due to other business engagements[45](index=45&type=chunk) [Review of Interim Financial Statements](index=13&type=section&id=%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E5%AF%A9%E9%96%B1) The Audit Committee has reviewed the unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025[46](index=46&type=chunk) [Interim Report](index=13&type=section&id=%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) The 2025 Interim Report will be published on the websites of the HKEX and the Company by the end of September 2025[47](index=47&type=chunk)

Core Viewpoint - *ST Sitong (603838.SH) announced that as of the date of this announcement, Mr. Huang Jianping has cumulatively increased his shareholding in the company by 1.884 million shares, accounting for 0.59% of the total share capital, with a total transaction amount of 10.1815 million yuan (excluding transaction fees). The shareholding increase plan has been completed [1] Summary by Category - Shareholding Increase - Mr. Huang Jianping has increased his shareholding by 1.884 million shares [1] - This increase represents 0.59% of the company's total share capital [1] - The total amount spent on this shareholding increase is 10.1815 million yuan [1] - Completion of Plan - The shareholding increase plan has been successfully implemented [1]