Core Viewpoint - The company, Charoen Pokphand Enterprises International (3839.HK), experienced a significant stock price increase of over 20%, reaching HKD 7.2, marking a new high in over 10 years following the release of its mid-year financial results [1] Financial Performance - The company reported a mid-year revenue of USD 323 million, nearly doubling compared to the previous period [1] - The gross profit margin was 12.9%, a decrease of 3.8 percentage points [1] - Net profit surged to USD 17.046 million, an increase of 7.68 times year-on-year [1] - Earnings per share were reported at 6.7 cents, with no interim dividend declared [1] Market Outlook - The group maintains a cautiously optimistic outlook for the remainder of the year, anticipating a continued stable recovery of the Chinese economy [1]

Core Viewpoint - Charoen Pokphand International reported strong growth in its biochemistry business for the first half of 2025, with revenues nearly doubling to $323 million and net profit attributable to shareholders reaching $17 million, a significant increase from $2 million in the same period last year. However, the gross margin declined to 12.9%, indicating profitability pressures due to business restructuring [1][4]. Group 1: Biochemistry Business Performance - The biochemistry segment experienced remarkable growth, with revenues soaring from $108 million in the first half of 2024 to $323 million in 2025, representing an increase of nearly 200%. This growth was primarily driven by strategic expansion in the animal health pharmaceutical sector, which saw its revenue share rise from 67% to 84% year-on-year [3]. - The product mix has shifted significantly, with animal health pharmaceuticals becoming the main revenue source, while traditional products like chloramphenicol saw their revenue share decrease from 33% to 16%. This transition reflects the company's responsiveness to market demand by expanding its product range to cover more veterinary drug categories [3]. - The diversification of the customer base, which includes farms, pharmaceutical companies, trading companies, and feed processing plants, has provided a more stable revenue foundation and mitigated risks associated with reliance on single customers or industries [3]. Group 2: Profitability Challenges - Despite the substantial revenue growth, Charoen Pokphand International is facing pressure from declining gross margins. The overall gross margin fell from 16.7% in the previous year to 12.9% in the first half of 2025, primarily due to changes in the product mix. The average profit margin for animal health pharmaceuticals is significantly lower than that of chloramphenicol products [4]. - Financial data indicates that the gross margin for the first quarter of 2025 was only 12.71%, down from 15.90% for the entire year of 2024 and 19.41% in 2023, showing a continuous downward trend. This trend suggests that while the company pursues scale expansion, its profitability is under structural pressure [4]. - The management needs to balance business growth with profitability. Although the animal health pharmaceutical segment has generated significant revenue growth, enhancing the profitability of this business, particularly by increasing the proportion of self-manufactured products, will be a key challenge for future development [4]. Group 3: Industrial Business Performance - The industrial business of Charoen Pokphand International shows a mixed performance. In the machinery sector, ECIMetro, as a Caterpillar dealer in Western China, benefited from a recovery in the excavator market, with overall excavator market sales increasing by approximately 23% in the first half of 2025. The sales of excavators, generators, and parts grew by 37.7% year-on-year [5]. - However, small and medium-sized excavators continue to face intense competition from domestic brands, leading to a decline in overall profit margins. Nonetheless, the profit attributable to joint ventures improved from $100,000 in the first half of 2024 to $1.4 million in the first half of 2025, indicating some profitability improvement [6]. - The automotive parts business performed poorly. Despite benefiting from a rise in automobile and motorcycle sales—approximately 11% and 12% growth respectively in the first half of 2025—intense market competition led to declines in both sales and profit margins for automotive parts. The profit from joint ventures decreased from $1.2 million in the first half of 2024 to $800,000 in the first half of 2025, reflecting operational pressures in this segment [6].

Core Viewpoint - Charoen Pokphand International (03839) experienced a significant stock increase of over 16%, reaching HKD 6.95 with a trading volume of HKD 4.9455 million following the announcement of its mid-2025 financial results [1] Financial Performance - The company reported revenue of approximately USD 323 million, representing a year-on-year growth of 199.44% [1] - Shareholder profit reached USD 17.046 million, marking a substantial increase of 768.36% compared to the previous year [1] - Earnings per share were reported at 6.7 cents [1] Business Segments - The increase in profit is primarily attributed to the significant growth in the company's biochemical business [1] - Charoen Pokphand International is engaged in both biochemical and industrial businesses, with a focus on animal health pharmaceutical products and goldenseal [1]

Core Viewpoint - Charoen Pokphand International (03839) experienced a significant stock increase of over 16%, reaching HKD 6.95 with a trading volume of HKD 4.9455 million following the announcement of its mid-year results for 2025 [1] Financial Performance - The company reported revenue of approximately USD 323 million, representing a year-on-year growth of 199.44% [1] - Shareholder profit attributable to the company was USD 17.046 million, showing a substantial increase of 768.36% compared to the previous year [1] - Earnings per share were recorded at 6.7 cents [1] Business Segments - The significant profit increase is primarily attributed to the remarkable growth in the company's biochemical business [1] - Charoen Pokphand International is engaged in both biochemical and industrial businesses, with a focus on animal health pharmaceutical products and gold mycin, operated by the company's subsidiaries [1]

Group 1 - The core viewpoint of the article is that Charoen Pokphand Enterprises International (03839) reported significant growth in its mid-year results for 2025, with revenue reaching approximately $323 million, representing a year-on-year increase of 199.44% [1] - The company's net profit attributable to shareholders was $17.046 million, which reflects a substantial year-on-year growth of 768.36% [1] - Earnings per share were reported at 6.7 cents, indicating strong profitability for the period [1] Group 2 - The increase in profit is primarily attributed to the remarkable growth in the group's biochemical business [1]

Core Insights - The company, Charoen Pokphand International (03839), reported a significant increase in its mid-term performance for 2025, with revenue reaching approximately $323 million, representing a year-on-year growth of 199.44% [1] - The net profit attributable to shareholders was $17.046 million, showing a remarkable year-on-year increase of 768.36% [1] - Earnings per share stood at 6.7 cents, reflecting the company's strong financial performance [1] - The substantial rise in profit is primarily attributed to the significant growth in the group's biochemical business [1]

Group 1 - The company's revenue increased approximately twofold to $323.3 million for the six months ending June 30, 2025 [1] - The net profit attributable to shareholders for the first half of the year was $17 million, compared to $2 million in the first half of 2024 [1] - The significant profit increase was primarily driven by substantial growth in the company's biochemical business [1] Group 2 - The basic and diluted earnings per share were 6.7 cents, compared to 0.8 cents in the first half of 2024 [1] - The company's board decided not to declare an interim dividend, consistent with the first half of 2024 [1]

[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]