[Unaudited Consolidated Results](index=1&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B6%9C%E5%90%88%E6%A5%AD%E7%B8%BE) This section presents the company's unaudited financial performance and position for the first half of 2025, highlighting significant revenue growth and changes in assets and liabilities [Unaudited Consolidated Statement of Comprehensive Income](index=1&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) The company's revenue nearly doubled in the first half of 2025, with significant increases in profit for the period and profit attributable to shareholders, though gross margin declined; basic and diluted earnings per share rose to **6.70 US cents** Key Unaudited Financial Data for H1 2025 (USD thousands) | Metric | 2025 (USD thousands) | 2024 (USD thousands) | | :--- | :--- | :--- | | Revenue | 323,328 | 107,979 | | Cost of sales | (281,545) | (89,990) | | Gross profit | 41,783 | 17,989 | | Profit before tax | 24,206 | 3,557 | | Profit for the period | 19,989 | 2,733 | | Profit attributable to equity holders of the Company | 17,046 | 1,963 | | Basic and diluted earnings per share (US cents) | 6.70 | 0.80 | - Total comprehensive income for the period shifted from a **negative USD 1,731 thousand** in H1 2024 to **positive USD 24,393 thousand** in H1 2025, primarily due to foreign currency translation differences from overseas operations and positive other comprehensive income from joint ventures and associates[4](index=4&type=chunk) [Consolidated Statement of Financial Position](index=3&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the company's total assets and shareholders' equity both increased, net current assets rose, current liabilities slightly increased, and non-current liabilities decreased Unaudited Consolidated Financial Position as of June 30, 2025 (USD thousands) | Metric | June 30, 2025 (USD thousands) | December 31, 2024 (USD thousands) | | :--- | :--- | :--- | | Total non-current assets | 226,970 | 224,182 | | Total current assets | 221,560 | 198,032 | | Total current liabilities | 147,039 | 144,208 | | Net current assets | 74,521 | 53,824 | | Total assets less current liabilities | 301,491 | 278,006 | | Total non-current liabilities | 16,586 | 17,494 | | Net assets | 284,905 | 260,512 | | Total equity | 284,905 | 260,512 | [Notes to the Unaudited Consolidated Financial Statements](index=5&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section details the basis of preparation, changes in accounting policies, operating segment information, and specific financial statement line items for the interim period [Basis of Preparation](index=5&type=section&id=1.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) This unaudited interim financial report is prepared in accordance with IAS 34 and the Listing Rules, consistent with the accounting policies of the 2024 annual financial statements, and presented in USD - The financial report is prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[7](index=7&type=chunk) - Accounting policies and basis of preparation are consistent with those adopted in the annual financial statements for the year ended December 31, 2024[7](index=7&type=chunk) - This interim financial information is presented in USD, with all amounts rounded to the nearest **thousand USD**[8](index=8&type=chunk) [Changes in Accounting Policies and Disclosures](index=5&type=section&id=2.%20%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E5%8F%8A%E6%8A%AB%E9%9C%B2%E4%B9%8B%E6%9B%B4%E6%94%B9) The Group applied amendments to IAS 21, which had no significant impact on the interim financial report due to the absence of transactions in non-exchangeable currencies, and no other new standards not yet in effect were adopted - The Group has applied the amendments to IAS 21 "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability" issued by the IASB to the interim financial report for the current accounting period[9](index=9&type=chunk) - As the Group did not enter into any foreign currency transactions that are not exchangeable into other currencies, the amendments had no significant impact on this interim financial report[9](index=9&type=chunk) - The Group has not early adopted any new standards or interpretations that are not yet effective for the current accounting period[10](index=10&type=chunk) [Operating Segment Information](index=6&type=section&id=3.%20%E7%B6%93%E7%87%9F%E5%88%86%E9%A1%9E%E8%B3%87%E6%96%99) The Group's operations are divided into two reportable segments, Biochemical and Industrial, with management independently monitoring their performance; the Biochemical segment contributes all consolidated revenue, while the Industrial segment operates through joint ventures and associates - The Group's operations are divided into two reportable operating segments based on products and services: the Biochemical segment (manufacturing and/or sales of animal health pharmaceutical products and aureomycin) and the Industrial segment (trading of machinery and equipment, and manufacturing and sales of automotive parts)[11](index=11&type=chunk)[13](index=13&type=chunk) - Segment performance is assessed based on the profit of reportable segments, calculated as adjusted profit before tax, excluding bank interest income, finance costs, and items not attributable to individual segments[11](index=11&type=chunk) - All revenue from contracts with customers is recognized when control over the promised products is transferred to the customer, either upon delivery to the customer's premises (domestic sales) or according to sales terms and conditions (export sales)[11](index=11&type=chunk) [Reportable Operating Segments](index=7&type=section&id=3.(a)%20%E5%8F%AF%E5%91%88%E5%A0%B1%E7%B6%93%E7%87%9F%E5%88%86%E9%A1%9E) The Biochemical segment achieved significant revenue growth in H1 2025, contributing all external group revenue, while the Industrial segment primarily contributed profit through joint ventures and associates, with segment assets and liabilities allocated between the two businesses Reportable Operating Segment Performance for H1 2025 (USD thousands) | Metric | Biochemical Business | Industrial Business | Total | | :--- | :--- | :--- | :--- | | Segment revenue (sales to external customers) | 323,328 | – | 323,328 | | Group segment results | 24,465 | (424) | 24,041 | | Share of profit of joint ventures | – | 1,350 | 1,350 | | Share of profit of associates | – | 783 | 783 | | Profit before tax | | | 24,206 | | Depreciation and amortization | 4,478 | – | 4,478 | | Capital expenditure | 1,150 | – | 1,150 | Reportable Operating Segment Assets and Liabilities as of June 30, 2025 (USD thousands) | Metric | Biochemical Business | Industrial Business | Total | | :--- | :--- | :--- | :--- | | Segment assets | 285,765 | 127,260 | 413,025 | | Total assets | | | 448,530 | | Segment liabilities | 94,142 | – | 94,142 | | Total liabilities | | | 163,625 | | Investment in joint ventures | – | 102,068 | 102,068 | | Investment in associates | – | 22,581 | 22,581 | Reportable Operating Segment Performance for H1 2024 (USD thousands) | Metric | Biochemical Business | Industrial Business | Total | | :--- | :--- | :--- | :--- | | Segment revenue (sales to external customers) | 107,979 | – | 107,979 | | Group segment results | 4,954 | (973) | 3,981 | | Share of profit of joint ventures | – | 114 | 114 | | Share of profit of associates | – | 1,161 | 1,161 | | Profit before tax | | | 3,557 | | Depreciation and amortization | 3,938 | – | 3,938 | | Capital expenditure | 8,950 | – | 8,950 | Reportable Operating Segment Assets and Liabilities as of December 31, 2024 (USD thousands) | Metric | Biochemical Business | Industrial Business | Total | | :--- | :--- | :--- | :--- | | Segment assets | 266,009 | 123,783 | 389,792 | | Total assets | | | 422,214 | | Segment liabilities | 83,044 | 60 | 83,104 | | Total liabilities | | | 161,702 | | Investment in joint ventures | – | 98,717 | 98,717 | | Investment in associates | – | 21,383 | 21,383 | [Geographical Information](index=10&type=section&id=3.(b)%20%E5%9C%B0%E5%8D%80%E8%B3%87%E6%96%99) In H1 2025, Mainland China was the primary source of group revenue with a significant increase in contribution, while revenue from Asia Pacific, Americas, Europe, and other regions also grew; the vast majority of the Group's non-current assets are located in Mainland China Revenue from External Customers by Location (USD thousands) | Region | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Mainland China | 267,093 | 74,072 | | Asia Pacific (excluding Mainland China) | 21,382 | 11,245 | | Americas | 20,977 | 15,097 | | Europe and other regions | 13,876 | 7,565 | | **Total** | **323,328** | **107,979** | - As of June 30, 2025, **99%** (December 31, 2024: 99%) of the Group's non-current assets were located in Mainland China[22](index=22&type=chunk) [Revenue](index=11&type=section&id=4.%20%E6%94%B6%E5%85%A5) Revenue represents the net invoiced amount of sales after deducting VAT, government surcharges, returns, and trade discounts, recognized under IFRS 15, and entirely derived from the Biochemical business - Revenue represents the net cumulative invoiced amount of sales after deducting VAT and government surcharges, and after deducting returns and trade discounts, recognized within the scope of IFRS 15[23](index=23&type=chunk) - All of the Group's revenue is derived from the Biochemical business[23](index=23&type=chunk) [Other Net Income](index=11&type=section&id=5.%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E6%B7%A8%E9%A1%8D) Other net income for H1 2025 was **USD 1,788 thousand**, a decrease from the prior period, mainly due to losses on disposal of property, plant and equipment and reduced government grants, though foreign currency translation differences turned into net income Analysis of Other Net Income (USD thousands) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Bank interest income | 439 | 694 | | Government grants | 731 | 1,066 | | Net loss/(income) on disposal of property, plant and equipment | (537) | 929 | | Net foreign currency translation differences | 881 | (521) | | Service income | – | 987 | | Others | 274 | 152 | | **Total** | **1,788** | **3,307** | [Finance Costs](index=11&type=section&id=6.%20%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) Finance costs for H1 2025 were **USD 1,059 thousand**, a decrease from the prior period, primarily due to reduced interest expenses on bank borrowings and adjustments in interest capitalization rates Analysis of Finance Costs (USD thousands) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Interest expense on bank borrowings | 1,245 | 1,604 | | Less: Interest expense capitalized | (186) | (355) | | **Total** | **1,059** | **1,249** | - Interest expense capitalized is calculated at annual interest rates ranging from **2.6% to 4.2%** (six months ended June 30, 2024: 3.2% to 5.1%) for each loan agreement[25](index=25&type=chunk) [Profit Before Tax](index=12&type=section&id=7.%20%E9%99%A4%E7%A8%85%E5%89%8D%E6%BA%A2%E5%88%A9) Profit before tax for H1 2025 was **USD 24,206 thousand**, primarily after deducting cost of inventories sold, depreciation of property, plant and equipment, and amortization of prepaid land lease payments Deductions from Profit Before Tax (USD thousands) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Cost of inventories sold | 281,545 | 89,990 | | Depreciation of property, plant and equipment | 4,419 | 3,877 | | Amortization of prepaid land lease payments | 59 | 61 | [Income Tax](index=12&type=section&id=8.%20%E6%89%80%E5%BE%97%E7%A8%85) The Group had no assessable income in Hong Kong, while its PRC subsidiaries are subject to income tax at a **25%** rate, with some enjoying tax concessions; total income tax expense for H1 2025 was **USD 4,217 thousand** - The Group did not earn any assessable income in Hong Kong during the period, thus no provision for Hong Kong profits tax was made[27](index=27&type=chunk) - Subsidiaries operating in the People's Republic of China are subject to income tax at a rate of **25%** on their assessable income, with certain subsidiaries enjoying exemptions or reductions in income tax[27](index=27&type=chunk) Analysis of Income Tax Expense (USD thousands) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Current period – PRC current expense | 4,121 | 691 | | Over-provision in prior years | (896) | – | | Deferred | 992 | 133 | | **Total tax expense for the period** | **4,217** | **824** | [Interim Dividend](index=12&type=section&id=9.%20%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board resolved not to declare an interim dividend for the six months ended June 30, 2025, consistent with the prior corresponding period - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[29](index=29&type=chunk) [Earnings Per Share Attributable to Equity Holders of the Company](index=13&type=section&id=10.%20%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9D%B1%E6%87%89%E4%BD%B5%E4%B9%8B%E6%BA%A2%E5%88%A9) Basic earnings per share are calculated based on profit attributable to equity holders of the Company and the weighted average number of ordinary shares outstanding, amounting to **6.70 US cents** for H1 2025, with no potential dilutive ordinary shares - Basic earnings per share are calculated based on the profit for the period attributable to equity holders of the Company and the weighted average number of ordinary shares and convertible preference shares in issue during the period[30](index=30&type=chunk) Basic Earnings Per Share Calculation Data | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit for the period attributable to equity holders of the Company used in the calculation of basic earnings per share (USD thousands) | 17,046 | 1,963 | | Weighted average number of ordinary shares and convertible preference shares in issue during the period used in the calculation of basic earnings per share | 253,329,087 | 253,329,087 | - There were no potential dilutive ordinary shares for the six months ended June 30, 2025 and 2024, thus diluted earnings per share were equal to basic earnings per share[32](index=32&type=chunk) [Trade and Bills Receivables](index=14&type=section&id=11.%20%E6%87%89%E6%94%B6%E8%B2%BF%E6%98%93%E8%B3%AC%E6%AC%BE%E5%8F%8A%E7%A5%A8%E6%93%9A) As of June 30, 2025, total trade and bills receivables amounted to **USD 138,134 thousand**, an increase from the end of 2024, with the largest portion aged 60 days or less; the Group maintains strict control over credit risk - The Group maintains strict control over outstanding balances, with management regularly reviewing overdue balances and potentially charging overdue interest at rates determined by the Group with reference to market practice[34](index=34&type=chunk) - In the opinion of the Directors, the Group does not have significant concentrations of credit risk[34](index=34&type=chunk) Aging Analysis of Trade and Bills Receivables (USD thousands) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade receivables: | | | | 60 days or less | 89,832 | 79,002 | | 61 to 180 days | 40,828 | 30,755 | | More than 180 days | 4,948 | 5,064 | | **Subtotal** | **135,608** | **114,821** | | Bills receivables: | | | | 60 days or less | 1,573 | 353 | | 61 to 180 days | 953 | 655 | | **Subtotal** | **2,526** | **1,008** | | **Total** | **138,134** | **115,829** | [Trade Payables](index=14&type=section&id=12.%20%E6%87%89%E4%BB%98%E8%B2%BF%E6%98%93%E8%B3%AC%E6%AC%BE) As of June 30, 2025, total trade payables amounted to **USD 78,238 thousand**, an increase from the end of 2024, with the largest portion aged 60 days or less Aging Analysis of Trade Payables (USD thousands) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 60 days or less | 56,030 | 48,908 | | 61 to 180 days | 15,288 | 13,481 | | More than 180 days | 6,920 | 5,132 | | **Total** | **78,238** | **67,521** | [Management Discussion and Analysis](index=15&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) This section provides an overview of the Group's financial performance, business operations, liquidity, and outlook for the period, highlighting key drivers and strategic initiatives [Group Performance](index=15&type=section&id=%E9%9B%86%E5%9C%98%E6%A5%AD%E7%B8%BE) In H1 2025, Group revenue significantly increased by approximately **2 times** to **USD 323.3 million**, primarily driven by the Biochemical business, with a substantial rise in profit attributable to equity holders of the Company, though gross margin declined due to increased sales of lower-margin products - The Group is engaged in Biochemical and Industrial businesses, with the Biochemical business being the source of all consolidated revenue, and the Industrial business contributing profit through joint ventures and associates[36](index=36&type=chunk) - Revenue for H1 2025 increased by approximately **2 times** to **USD 323.3 million** (H1 2024: USD 108 million), primarily reflecting the successful implementation and ongoing execution of key strategies to develop major customer sales[36](index=36&type=chunk) - Overall gross margin decreased from **16.7%** in H1 2024 to **12.9%** in H1 2025, mainly due to increased sales of lower-margin animal health pharmaceutical products[36](index=36&type=chunk) - Profit attributable to equity holders of the Company was **USD 17 million** (H1 2024: USD 2 million), with basic and diluted earnings per share at **6.7 US cents** (H1 2024: 0.8 US cents)[37](index=37&type=chunk) [Business Review](index=15&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) Biochemical business revenue grew by approximately **2 times**, with an increased proportion of animal health pharmaceutical products leading to a decline in overall gross margin; in the Industrial business, ECI Metro's machinery equipment sales increased, raising its share of profit, while Zhanjiang Deli's automotive parts sales and profit margin decreased, reducing its share of profit - Biochemical business revenue increased by approximately **2 times** to **USD 323.3 million**, with animal health pharmaceutical products' revenue contribution rising from **67%** to **84%**, while aureomycin products' contribution decreased to **16%**[38](index=38&type=chunk) - The Industrial business operates through ECI Metro and Zhanjiang Deli; ECI Metro's sales of excavators, generators, and parts grew by **37.7%**, and its share of profit from joint ventures increased to **USD 1.4 million**[40](index=40&type=chunk) - Zhanjiang Deli's motorcycle parts sales increased, but automotive parts sales and profit margin declined due to intense market competition, with its share of profit from associates decreasing from **USD 1.2 million** to **USD 0.8 million**[40](index=40&type=chunk) [Biochemical Business](index=15&type=section&id=%E7%94%9F%E5%8C%96%E6%A5%AD%E5%8B%99) Biochemical business revenue grew by approximately **2 times**, primarily from the manufacturing and sales of animal health pharmaceutical products and aureomycin products; the significant increase in animal health pharmaceutical products' share, despite their lower profit margins, led to a decline in overall gross margin - Revenue primarily derives from the manufacturing and/or sales of animal health pharmaceutical products and aureomycin products, with a strategic expansion of the product portfolio to include related veterinary pharmaceutical products[38](index=38&type=chunk) - Biochemical business revenue increased by approximately **2 times** to **USD 323.3 million** in H1 2025[38](index=38&type=chunk) - The revenue contribution from animal health pharmaceutical products increased from **67%** in H1 2024 to **84%** in H1 2025, while that from aureomycin products decreased from **33%** to **16%**[38](index=38&type=chunk) - The lower average profit margin of animal health pharmaceutical products led to a decrease in overall gross margin from **16.7%** in H1 2024 to **12.9%** in H1 2025[39](index=39&type=chunk) [Industrial Business](index=16&type=section&id=%E5%B7%A5%E6%A5%AD%E6%A5%AD%E5%8B%99) The Industrial business operates through ECI Metro and Zhanjiang Deli; ECI Metro's machinery equipment sales grew by **37.7%**, with its share of profit increasing to **USD 1.4 million**, though overall profit margins were affected by domestic brand competition; Zhanjiang Deli saw increased motorcycle parts sales, but automotive parts sales and profit margins declined, reducing its share of profit to **USD 0.8 million** - ECI Metro primarily engages in the sales, leasing, and maintenance services of Caterpillar machinery and equipment in Western China, with sales of excavators, generators, and parts increasing by **37.7%** in H1 2025 compared to H1 2024[40](index=40&type=chunk) - ECI Metro's share of profit from joint ventures increased from **USD 0.1 million** in H1 2024 to **USD 1.4 million** in H1 2025[40](index=40&type=chunk) - Zhanjiang Deli primarily manufactures and sells automotive parts; motorcycle parts sales increased, but automotive parts sales and profit margins declined due to intense market competition[40](index=40&type=chunk) - Zhanjiang Deli's share of profit from associates decreased from **USD 1.2 million** in H1 2024 to **USD 0.8 million** in H1 2025[40](index=40&type=chunk) [Outlook](index=16&type=section&id=%E5%B1%95%E6%9C%9B) With China's economy expected to continue its steady recovery, the Group maintains a cautiously optimistic outlook for the remainder of 2025 - China's economy is expected to continue its steady recovery, and the Group maintains a cautiously optimistic outlook for its performance for the remainder of 2025[41](index=41&type=chunk) [Liquidity and Financial Resources](index=16&type=section&id=%E8%B3%87%E9%87%91%E6%B5%81%E5%8B%95%E6%80%A7%E5%8F%8A%E8%B2%A1%E6%94%BF%E8%B3%87%E6%BA%90) As of June 30, 2025, the Group's total assets grew by **6.2%** to **USD 448.5 million**; the net debt-to-equity ratio decreased to **0.08**, indicating reduced financial leverage, and all borrowings are denominated in RMB - As of June 30, 2025, the Group's total assets were **USD 448.5 million**, an increase of **6.2%** from **USD 422.2 million** as of December 31, 2024[42](index=42&type=chunk) - The net debt-to-equity ratio (defined as bank borrowings less cash and deposits divided by total equity) was **0.08**, compared to **0.14** as of December 31, 2024, indicating reduced financial leverage[42](index=42&type=chunk) - All of the Group's borrowings as of June 30, 2025, and December 31, 2024, were denominated in RMB[43](index=43&type=chunk) - The Group monitors foreign exchange fluctuations and considers appropriate hedging activities when necessary[43](index=43&type=chunk) [Capital Structure](index=17&type=section&id=%E8%B3%87%E6%9C%AC%E7%B5%90%E6%A7%8B) The Group meets its liquidity requirements through working capital and borrowings; as of June 30, 2025, cash and cash equivalents increased by **USD 3.1 million** to **USD 35.5 million** - The Group meets its liquidity requirements through working capital and borrowings[44](index=44&type=chunk) - As of June 30, 2025, the Group held cash and cash equivalents of **USD 35.5 million** (December 31, 2024: USD 32.4 million), an increase of **USD 3.1 million**[44](index=44&type=chunk) [Pledge of Group Assets](index=17&type=section&id=%E9%9B%86%E5%9C%98%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group's total borrowings were **USD 59.1 million**, of which **USD 16.6 million** (**28.2%** of total borrowings) were secured by assets, primarily property, plant and equipment and prepaid land lease payments - As of June 30, 2025, the Group's total borrowings were **USD 59.1 million** (December 31, 2024: USD 69.2 million)[45](index=45&type=chunk) - Of these, **USD 16.6 million** (December 31, 2024: USD 18.8 million) of borrowings were secured by assets, representing **28.2%** (December 31, 2024: 27.1%) of total borrowings[45](index=45&type=chunk) - Certain of the Group's property, plant and equipment and prepaid land lease payments with a combined net book value of **USD 23.6 million** (December 31, 2024: USD 24.0 million) have been pledged as security[45](index=45&type=chunk) [Contingent Liabilities](index=17&type=section&id=%E6%88%96%E6%9C%89%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had no significant contingent liabilities - The Group had no significant contingent liabilities as of June 30, 2025[46](index=46&type=chunk) [Employees and Remuneration Policy](index=17&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E9%85%AC%E9%87%91%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group employed approximately **900** staff in Mainland China and Hong Kong, with remuneration policies based on performance, experience, and market levels, offering benefits such as medical insurance and training - As of June 30, 2025, the Group employed approximately **900** staff in Mainland China and Hong Kong[47](index=47&type=chunk) - The Group determines staff remuneration based on employee performance, experience, and prevailing market levels, with discretionary bonuses awarded[47](index=47&type=chunk) - Other employee benefits include, for example, medical insurance and training[47](index=47&type=chunk) [Interim Dividend](index=17&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board resolved not to declare an interim dividend for the six months ended June 30, 2025, consistent with the prior corresponding period - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[48](index=48&type=chunk) [Other Information](index=18&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) This section covers corporate governance, directors' securities transactions, review of interim results, and any purchase, sale, or redemption of the company's listed securities [Corporate Governance Code](index=18&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The Company is committed to maintaining high corporate governance standards and complies with the Corporate Governance Code in Appendix C1 of the Listing Rules, with only a minor deviation due to the Chairman's absence from the Annual General Meeting - The Company is committed to maintaining high corporate governance standards, with principles aimed at upholding high levels of ethics, transparency, accountability, and integrity across all aspects of its business[49](index=49&type=chunk) - The Board believes that for the six months ended June 30, 2025, the Company has applied the principles and complied with all code provisions of the Corporate Governance Code set out in Appendix C1 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[49](index=49&type=chunk) - However, the Company's Chairman was unable to attend the Annual General Meeting held on June 10, 2025, due to other business engagements, resulting in a deviation from code provision F.2.2[49](index=49&type=chunk) [Directors' Securities Transactions](index=18&type=section&id=%E8%91%A3%E4%BA%8B%E7%9A%84%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93) The Company has adopted a code of conduct for securities transactions, and all Directors confirmed compliance with the required standards of this code during the reporting period - The Company has adopted a code of conduct for securities transactions, which is based on the required standards set out in the Model Code for Securities Transactions by Directors of Listed Issuers in Appendix C3 of the Listing Rules[50](index=50&type=chunk) - All Directors have responded to specific inquiries from the Company and confirmed their compliance with the required standards set out in the code of conduct for securities transactions for the six months ended June 30, 2025[50](index=50&type=chunk) [Review of Interim Results](index=18&type=section&id=%E5%AF%A9%E9%96%B1%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE) The interim results for the six months ended June 30, 2025, are unaudited but have been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410, resulting in an unmodified review report, and also reviewed by the Audit Committee - The interim results for the six months ended June 30, 2025, are unaudited but have been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410 issued by the Hong Kong Institute of Certified Public Accountants[51](index=51&type=chunk) - KPMG's unmodified review report is included in the interim report to be submitted to the Company's shareholders[51](index=51&type=chunk) - The Company's Audit Committee has also reviewed the interim results for the six months ended June 30, 2025[52](index=52&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=19&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%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the six months ended June 30, 2025 - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the six months ended June 30, 2025[53](index=53&type=chunk)

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7月31日 狀態: 新提交 致：香港交易及結算所有限公司 | 2. 股份分類 | 優先股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 否 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | N/A | 說明 | 可換股優先股 | | | | | | | | | 法定/註冊股份數目 | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 12,610,777 USD | | | 0.1 USD | | 1,261,077.7 | | 增加 / 減少 (-) | | | 0 | | | USD | | 0 | | 本月底結存 | | | 12,610,777 USD | | | 0.1 USD | | 1,261,077.7 | 本月底法定/註冊股本總額： USD 80,000,000 FF301 第 1 頁 共 10 頁 v 1.1.1 公司名稱: 正大企業國際有限公 ...

Group 1 - The company, Charoen Pokphand International (03839.HK), announced a board meeting scheduled for August 11, 2025, to approve the interim results for the six months ending June 30, 2025, and to consider the distribution of an interim dividend, if any [1]

（於百慕達註冊成立之成員有限責任公司） （股份代號：3839） 董事會會議召開日期 正大企業國際有限公司（「本公司」）董事會（「董事會」）謹此宣佈將於二零 二五年八月十一日（星期一）舉行董事會會議，藉以（其中包括）批准本公司及 其附屬公司截至二零二五年六月三十日止六個月之中期業績及考慮派發中期股息 （如有）。 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 CHIA TAI ENTERPRISES INTERNATIONAL LIMITED 正大企業國際有限公司 承董事會命 董事 李紹祝 香港，二零二五年七月三十日 於本公告日期，董事會包括謝吉人先生（董事長及非執行董事）、李紹慶先生、李紹祝 先生、謝杰人先生、馬德壽先生（各人均為執行董事）、池添洋一先生（非執行董事）、 Surasak Rounroengrom 先生、鄭毓和先生、高明東先生及章曼琪女士（各人均為獨立非執 行董事）。 ...

Group 1 - The Hong Kong pharmaceutical stocks showed a strong performance, with several companies experiencing significant gains [1] - Baset Pharmaceutical (02616.HK) increased by 9.86%, indicating a robust market response [1] - Other notable gainers included Charoen Pokphand International (03839.HK) with a rise of 7.06%, Sanofi Pharmaceutical (02257.HK) up by 6.93%, and Weiya Biotechnology (01873.HK) which saw a 5.80% increase [1]

Summary of Key Points Core Viewpoint - As of July 3, a total of 120 stocks reached their 52-week highs, indicating a strong market performance with notable leaders in the list [1]. Group 1: Top Performers - The top three stocks with the highest increase rates are: - 富誉控股 (Fuyou Holdings) at 90.76%, closing at 0.435 with a peak of 0.475 [1] - 信义能源 (Xinyi Energy) at 65.00%, closing at 1.200 with a peak of 1.980 [1] - 中国三三传媒 (China San San Media) at 42.86%, closing at 1.710 with a peak of 1.900 [1] Group 2: Additional Notable Stocks - Other notable stocks include: - ITE HOLDINGS at 34.21% increase, closing at 0.047 with a peak of 0.051 [1] - 星凯控股 (Xingkai Holdings) at 30.00%, closing at 0.480 with a peak of 0.650 [1] - 北京北辰实业股份 (Beijing Beichen Industrial) at 26.47%, closing at 0.940 with a peak of 1.290 [1] Group 3: Overall Market Trends - The overall trend shows a significant number of stocks achieving new highs, reflecting positive investor sentiment and market conditions [1].

Group 1 - The core viewpoint of the news highlights the significant stock performance of Charoen Pokphand International (03839.HK), which saw a 21.68% increase in share price, closing at 2.75 HKD per share, with a trading volume of 4.17 million shares and a turnover of 11.09 million HKD [1] - Over the past month, Charoen Pokphand International has achieved a cumulative increase of 20.86%, and a year-to-date increase of 51.68%, outperforming the Hang Seng Index's increase of 17.3% [2] - Financial data shows that as of March 31, 2025, Charoen Pokphand International reported total revenue of 1.185 billion HKD, a year-on-year increase of 201.97%, and a net profit attributable to shareholders of 55.186 million HKD, a year-on-year increase of 677.35% [2] Group 2 - Charoen Pokphand International is a Hong Kong-listed company involved in biochemical and industrial businesses, established as part of the Charoen Pokphand Group since 1995, and is a leading producer of oxytetracycline globally [3] - The company holds a 50% stake in one of China's four major Caterpillar distributors and has been listed on the Hong Kong Stock Exchange since July 2015 [3] - The average price-to-earnings (P/E) ratio for the pharmaceutical and biotechnology industry is 3.62 times, with a median of 5.93 times, while Charoen Pokphand International has a P/E ratio of 3.92 times, ranking fourth in the industry [2]

Group 1: Company Performance - NetEase-S (09999) saw a significant increase of 10.89% in stock price after reporting Q1 2025 net revenue of RMB 28.8285 billion, a year-on-year increase of 7.4%, and gross profit of RMB 18.5 billion, up 8.6% [1] - H&H International Holdings (01112) rose over 8% as the market speculated on the ergotamine concept, with its Swisse brand showing strong performance in high-growth segments [2] - China Gold International (02099) experienced a stock price increase of over 5% after reporting a 351% rise in Q1 revenue to USD 273 million [2] Group 2: Clinical and Pharmaceutical Developments - Shandong Xinhua Pharmaceutical (00719) surged over 14% as COVID-19 infections showed an upward trend, with the company preparing for Phase II clinical trials of OAB-14 [1] - Innovent Biologics (01801) rose nearly 3% after announcing the completion of the first patient dosing in the Phase III clinical study of Ma Shidu peptide for obesity [1] - Kangxi Biologics (06185) increased over 3% after receiving approval from the Indonesian drug regulatory authority for its inhaled tuberculosis vaccine clinical trial [1] Group 3: Market Trends and Reactions - The Nasdaq Golden Dragon China Index fell over 2%, with notable declines in popular Chinese stocks such as Tiger Brokers (TIGR.US) down over 8% and Beike (BEKE.US) down over 5% [3] - UnitedHealth Group (UNH.US) experienced a significant drop of over 15% following reports of a U.S. Department of Justice investigation into potential insurance fraud [3] - Bitcoin-related stocks declined, with CleanSpark (CLSK.US) down nearly 6% and Coinbase (COIN.US) down over 7%, as Bitcoin itself fell over 1.5% [3]

Financial Performance - The company reported revenue of $165,041,000 for the three months ended March 31, 2025, representing a significant increase of 201% compared to $54,654,000 for the same period in 2024[4] - Gross profit for the same period was $20,969,000, up 146% from $8,510,000 year-over-year[4] - The net profit attributable to the company's shareholders was $7,688,000, compared to $989,000 in the previous year, marking a substantial increase of 678%[5] - The total comprehensive income for the period was $10,639,000, compared to a loss of $1,819,000 in the same quarter of the previous year[5] Assets and Equity - The company's total assets as of March 31, 2025, were $444,144,000, an increase from $422,694,000 as of December 31, 2024[6] - Current assets increased to $218,910,000 from $198,032,000, reflecting a growth of 10.9%[6] - The company's net current assets improved to $65,234,000, up from $53,824,000, indicating a 21.2% increase[6] - The total equity attributable to the company's shareholders rose to $243,513,000 from $234,773,000, showing an increase of 3.3%[7] Inventory and Financial Costs - The company reported a decrease in inventory to $25,440,000 from $33,053,000, a reduction of 23%[6] - The company’s financial costs decreased to $497,000 from $609,000, a decline of 18.3%[4]

Financial Performance - In 2024, the Group's revenue increased by 76.9% to US$307.7 million, up from US$174.0 million in 2023[25] - Profit attributable to shareholders of the Company rose to US$11.2 million in 2024, more than tripling from US$2.6 million in 2023[26] - Basic and diluted earnings per share were both 4.4 US cents, compared to 1.0 US cent in 2023[27] - The overall gross profit margin decreased from 17.3% in 2023 to 15.9% in 2024, primarily due to the lower profit margin of the animal health product business[25] - The Group's revenue from the biochemical business increased by 76.9% to US$307.7 million in 2024, compared to US$174.0 million in 2023[31] - Revenue contribution from animal health products rose from 59% in 2023 to 72% in 2024, while contribution from CTC products decreased from 41% to 28%[31] - Overall gross profit margin decreased from 17.3% in 2023 to 15.9% in 2024 due to a higher proportion of lower-margin animal health products[32] - Shareholder profit attributable to the Group increased over threefold to US$11.2 million in 2024 from US$2.6 million in 2023, driven by strong performance in the biochemical business[28] Assets and Liabilities - The total assets of the Group increased to US$422.2 million in 2024 from US$377.4 million in 2023[16] - Net debt decreased to US$36.8 million in 2024 from US$40.6 million in 2023, with a debt-to-equity ratio of 0.14 compared to 0.16 in the previous year[39] - As of December 31, 2024, the Group's total borrowings amounted to $69.2 million, a decrease from $78.2 million as of December 31, 2023[51] - Of the total borrowings, $18.8 million (27.1%) required asset collateral, down from $21.7 million (27.7%) in the previous year[51] - The Group's cash and cash equivalents decreased to US$32.4 million in 2024 from US$37.6 million in 2023[41] Business Operations and Strategy - The Group's biochemical business is the main contributor to revenue, reflecting successful sales strategies to key customers[25] - The Group is focusing on research and development investments, particularly in emerging technologies and artificial intelligence[5] - The Group's industrial business faced challenges, with a decline in share of profits due to intense competition[26] - The Group actively participated in trade exhibitions to enhance brand influence and showcase innovative products[5] - The Group aims to uphold its "Three Benefits Principle" and prepare for high-quality development by 2025[10] - The Group emphasizes the importance of speed and quality, ensuring adaptability to new technologies and changing consumer preferences[93] - Innovation is a key driver for the Group, with a focus on fostering creativity among employees to enhance products and services[100] Corporate Governance - The Company held one annual general meeting and four Board meetings in 2024[76] - The Board consists of ten members, including four executive directors, two non-executive directors, and four independent non-executive directors[58] - All independent non-executive directors confirmed their independence in accordance with the Listing Rules[67] - The Company has adopted a Code of Conduct for Securities Transactions, ensuring compliance by all directors during 2024[69] - The Board is responsible for presenting a balanced and clear assessment of the Company's performance in annual and interim reports[84] - The financial statements are prepared in accordance with International Financial Reporting Standards, ensuring a true and fair view of the Group's financial position and performance[85] - The Company has adopted a Dividend Policy that considers operational results, financial conditions, and future development, with no dividends expected during growth stages unless special circumstances arise[90] - The Group has consistently applied appropriate accounting policies and made reasonable judgments in preparing financial statements[86] - The Directors confirm no material uncertainties that may cast significant doubt on the Company's ability to continue as a going concern[87] - Future dividend declarations will be at the Board's discretion and may not reflect historical patterns[90] - The Board's accountability includes ensuring compliance with applicable laws and regulations regarding dividend payments[90] - The Group upholds six core values in conducting its business operations[92] - The Board is committed to reviewing and potentially amending the Dividend Policy as necessary[90] Risk Management and Internal Control - The Board conducted an annual review of the effectiveness of the Group's risk management and internal control systems for 2024, finding them effective and adequate[183] - No significant control failings or weaknesses were identified in 2024, indicating the Company's ability to respond to changes in its business and external environment[183] - The Group has established a Risk Management Policy to manage risks associated with achieving business objectives, providing reasonable assurance against material misstatement or loss[180] - The Audit Committee is responsible for reviewing the effectiveness of the Group's risk management and internal control systems, with regular reports from the Internal Audit Department[181] - The Company has adequate resources, staff qualifications, training programs, and budget for accounting, internal audit, and financial reporting functions[184] - The Group is committed to continuous improvement in its risk management and internal control framework, integrating these processes into business operations[185] - An Inside Information Handling Policy is in place to ensure timely communication with stakeholders regarding inside information[185] - The Company has formulated a Whistleblowing Policy to detect and deter misconduct, approved by the Board and delegated to the Audit Committee[186] - The Anti-corruption Policy has been established in accordance with Stock Exchange requirements, also approved by the Board[190] - The Group's risk appetite statement defines the extent of risks the Group is willing to take in pursuit of its strategies and business objectives[182] Employee and Diversity Policies - The Group employed approximately 900 employees in the PRC and Hong Kong as of December 31, 2024[50] - The Group's employee remuneration policies include performance-based bonuses and other benefits such as medical insurance and training[50] - The Company plans to increase the percentage of female workforce from 27% to 30% by December 2027 to enhance gender diversity[150] - The Board aims to maintain at least the current level of female representation and has set a target to appoint at least one female Director by December 31, 2024, which was achieved on February 23, 2024[146] - The Board Diversity Policy remains effective as reviewed in 2024, focusing on various diversity considerations including gender, age, and professional experience[141] Committees and Meetings - The Audit Committee reviewed the annual results for the year ended December 31, 2023, and recommended approval of the financial information in the annual report[107] - The Audit Committee held three meetings in 2024, focusing on financial reporting, risk management, and internal control systems[107] - The Remuneration Committee held three meetings in 2024 to discuss remuneration packages for directors and senior management, including proposals for 2025[117] - The Remuneration Policy aims to attract and retain high-caliber employees, ensuring competitive compensation based on business needs and industry practices[116] - The Nomination Committee is responsible for formulating the Company's Nomination Policy and assessing the independence of independent non-executive Directors[128] - The Corporate Governance Committee held two meetings in 2024 to review compliance with the Corporate Governance Code for the year ended December 31, 2023, and for the six months ended June 30, 2024[174] - The Corporate Governance Committee reviewed major ESG initiatives taken in 2023 and the progress on ESG targets[174] - The Corporate Governance Committee also assessed compliance with the new Corporate Governance Code and revised Listing Rules effective July 1, 2025[175] Shareholder Rights - Shareholders can make inquiries to the Board by writing to the Company's principal place of business in Hong Kong[198] - Members representing not less than one-twentieth of the total voting rights can submit a written requisition for proposals at general meetings[199] - The requisition must include a resolution and a statement of not more than one thousand words regarding the proposed resolution[200]