Interim Results Announcement [Condensed Consolidated Interim Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Interim%20Financial%20Statements) This section presents the unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025, with comparative data [Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's revenue significantly increased, gross profit grew, and net profit was achieved, reversing the prior year's loss | Metric | Six Months Ended June 30, 2025 (RMB '000) | Six Months Ended June 30, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 127,456 | 69,090 | +84.5% | | Cost of Sales | (104,537) | (62,765) | +66.6% | | Gross Profit | 22,919 | 6,325 | +262.4% | | Operating Profit/(Loss) | 6,488 | (3,855) | N/A (Turned from loss to profit) | | Profit/(Loss) for the Period | 6,448 | (4,184) | N/A (Turned from loss to profit) | | Earnings/(Loss) Per Share | 0.016 | (0.010) | N/A (Turned from loss to profit) | [Condensed Consolidated Interim Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets increased by 14.8% to RMB 322,132 thousand, driven by current assets and a significant rise in cash and cash equivalents | Metric | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 322,132 | 280,530 | +14.8% | | Non-current Assets | 123,623 | 126,855 | -2.5% | | Current Assets | 198,509 | 153,675 | +29.2% | | Total Equity | 202,560 | 195,947 | +3.4% | | Total Liabilities | 119,572 | 84,583 | +41.4% | | Current Liabilities | 114,998 | 79,583 | +44.5% | | Cash and Cash Equivalents | 23,228 | 6,003 | +286.9% | [Condensed Consolidated Interim Statement of Changes in Equity](index=5&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, total equity increased to RMB 202,560 thousand, primarily due to profit for the period and foreign currency translation differences | Metric | As of June 30, 2025 (RMB '000) | As of January 1, 2024 (RMB '000) | | :--- | :--- | :--- | | Total Equity at Period End | 202,560 | 207,060 | | Profit/(Loss) for the Period | 6,448 | (4,184) | | Other Comprehensive Income/(Expense) | 165 | (15) | | Total Comprehensive Income/(Expense) | 6,613 | (4,199) | [Condensed Consolidated Interim Statement of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, operating activities resulted in a cash outflow, while financing activities generated significant cash inflow from bank borrowings, leading to a net increase in cash | Metric | Six Months Ended June 30, 2025 (RMB '000) | Six Months Ended June 30, 2024 (RMB '000) | | :--- | :--- | :--- | | Net Cash From/(Used in) Operating Activities | (30,599) | 3,678 | | Net Cash Used in Investing Activities | (1,256) | (15,530) | | Net Cash From/(Used in) Financing Activities | 49,080 | (5,223) | | Net Increase/(Decrease) in Cash and Cash Equivalents | 17,225 | (17,075) | | Cash and Cash Equivalents at Period End | 23,228 | 27,096 | [Notes to the Condensed Consolidated Interim Financial Statements](index=7&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) This section provides detailed notes to the condensed consolidated interim financial statements, covering accounting policies, fair value measurements, segment reporting, and key financial item details [General Information](index=7&type=section&id=General%20Information) The company, incorporated in the Cayman Islands, primarily manufactures and sells concrete products in China, with Ms Wang Xianyu as the ultimate controlling shareholder - The company primarily engages in the manufacturing and sale of PHC pipe piles, ceramsite concrete slabs, and commercial concrete in China[10](index=10&type=chunk) - Ms Wang Xianyu is the ultimate controlling shareholder of the company[11](index=11&type=chunk) [Basis of Preparation](index=7&type=section&id=Basis%20of%20Preparation) The unaudited condensed consolidated interim financial statements are prepared in accordance with HKAS 34 and the Listing Rules, and have been reviewed by the Audit Committee - The unaudited condensed consolidated interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the HKICPA and the applicable disclosure requirements of the Listing Rules[12](index=12&type=chunk) - The condensed consolidated interim financial statements have not been audited or reviewed by the company's external auditors, but have been reviewed by the Audit Committee[12](index=12&type=chunk) [Summary of Significant Accounting Policies](index=8&type=section&id=Summary%20of%20Significant%20Accounting%20Policies) The financial statements are prepared on a historical cost basis, adopting new and revised HKFRSs effective January 1, 2025, with no material impact from HKAS 21 (Amendment) - The condensed consolidated interim financial statements have been prepared on a historical cost basis[13](index=13&type=chunk) - The adoption of HKAS 21 (Amendment) 'Lack of Exchangeability' had no impact on the Group's interim condensed consolidated financial information[15](index=15&type=chunk) [Fair Value Measurement](index=9&type=section&id=Fair%20Value%20Measurement) The Group's financial assets and liabilities have fair values similar to their carrying amounts, with fair value measurements categorized into three levels, primarily including listed and unlisted equity securities - The carrying amounts of the Group's financial assets and financial liabilities approximate their respective fair values[18](index=18&type=chunk) - Level 1 instruments primarily include investments in listed securities, classified as financial assets at fair value through profit or loss[24](index=24&type=chunk) - Level 3 instruments primarily include investments in unlisted equity securities (Zhejiang Erge) and bank and commercial acceptance bills, whose fair values are determined using applicable valuation techniques (including the comparable company method)[25](index=25&type=chunk)[26](index=26&type=chunk) [Segment Reporting](index=11&type=section&id=Segment%20Reporting) The Group operates as a single segment, manufacturing and selling concrete products in China, with all revenue and most non-current assets originating from China - The Group primarily engages in the manufacturing and sale of commercial concrete, PHC pipe piles, and ceramsite concrete slabs in China, with management reviewing the business as a single operating segment[27](index=27&type=chunk) - All of the Group's revenue is derived from China, and non-current assets are primarily located in China (**RMB 113,507 thousand**)[27](index=27&type=chunk)[28](index=28&type=chunk) [Revenue](index=11&type=section&id=Revenue) For the six months ended June 30, 2025, total revenue increased by 84.5% to RMB 127,456 thousand, driven by significant growth in PHC pipe piles and commercial concrete sales | Product | Six Months Ended June 30, 2025 (RMB '000) | Six Months Ended June 30, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | PHC Pipe Piles | 79,099 | 41,414 | +91.0% | | Commercial Concrete | 48,351 | 26,115 | +85.1% | | Ceramsite Concrete Slabs | 6 | 1,561 | -99.6% | | Total | 127,456 | 69,090 | +84.5% | - Contract liabilities increased from **RMB 1,108 thousand** as of December 31, 2024, to **RMB 2,331 thousand** as of June 30, 2025[31](index=31&type=chunk) - In the first half of 2025, Customer A contributed **RMB 18,241 thousand** in revenue, becoming a major customer[32](index=32&type=chunk) [Expenses by Nature](index=12&type=section&id=Expenses%20by%20Nature) For the six months ended June 30, 2025, raw materials and consumables expenses significantly increased by 90.7%, employee benefit expenses rose, while depreciation of property, plant and equipment decreased | Item | Six Months Ended June 30, 2025 (RMB '000) | Six Months Ended June 30, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Raw Materials and Consumables Used | 86,793 | 45,505 | +90.7% | | Employee Benefit Expenses | 7,219 | 6,535 | +10.5% | | Depreciation of Property, Plant and Equipment | 5,085 | 6,142 | -17.2% | | Total Expenses | 122,101 | 73,814 | +65.4% | [Other Income, Other Costs and Net Other Gains](index=13&type=section&id=Other%20Income,%20Other%20Costs%20and%20Net%20Other%20Gains) For the six months ended June 30, 2025, net other income, costs, and gains increased by 29.9% to RMB 1,133 thousand, primarily from rental income and fair value gains on financial assets | Item | Six Months Ended June 30, 2025 (RMB '000) | Six Months Ended June 30, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Other Income | 1,379 | – | N/A | | Other Costs | (1,215) | – | N/A | | Net Other Gains | 969 | 872 | +11.1% | | Total | 1,133 | 872 | +29.9% | [Net Finance (Costs)/Income](index=13&type=section&id=Net%20Finance%20(Costs)%2FIncome) For the six months ended June 30, 2025, the company recorded net finance costs of RMB 171 thousand, reversing the prior year's net finance income, mainly due to increased bank borrowing interest expenses | Item | Six Months Ended June 30, 2025 (RMB '000) | Six Months Ended June 30, 2024 (RMB '000) | | :--- | :--- | :--- | | Finance Income | 136 | 298 | | Finance Costs | (307) | (96) | | Net Finance (Costs)/Income | (171) | 202 | [Income Tax (Credit)/Expense](index=14&type=section&id=Income%20Tax%20(Credit)%2FExpense) For the six months ended June 30, 2025, the company recorded an income tax credit of RMB 131 thousand, with PRC subsidiaries subject to a 25% corporate income tax rate, and high-tech enterprises enjoying a 15% preferential rate | Item | Six Months Ended June 30, 2025 (RMB '000) | Six Months Ended June 30, 2024 (RMB '000) | | :--- | :--- | :--- | | Current Income Tax | 432 | 16 | | Deferred Income Tax | (563) | 515 | | Income Tax (Credit)/Expense | (131) | 531 | - The applicable corporate income tax rate for PRC subsidiaries is **25%**, with high-tech enterprises enjoying a preferential rate of **15%**[36](index=36&type=chunk) - The additional tax deduction for qualified R&D expenses of manufacturing enterprises has increased to **200%** since 2021[37](index=37&type=chunk) [Dividends](index=15&type=section&id=Dividends) For the six months ended June 30, 2025, the company neither paid nor declared any dividends, consistent with the prior year - The Board does not recommend paying any interim dividend for the period (six months ended June 30, 2024: nil)[39](index=39&type=chunk) [Earnings Per Share](index=15&type=section&id=Earnings%20Per%20Share) For the six months ended June 30, 2025, basic earnings per share was RMB 0.016, reflecting improved performance from a loss of RMB 0.010 per share in the prior year | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Profit/(Loss) Attributable to Equity Holders of the Company (RMB thousand) | 6,448 | (4,181) | | Weighted Average Number of Shares in Issue (thousand shares) | 400,000 | 400,000 | | Basic Earnings Per Share (RMB) | 0.016 | (0.010) | - During the period and for the six months ended June 30, 2025, the company had no outstanding potential ordinary shares, thus diluted earnings per share equals basic earnings per share[41](index=41&type=chunk) [Property, Plant and Equipment](index=15&type=section&id=Property,%20Plant%20and%20Equipment) For the six months ended June 30, 2025, the Group's purchases of property, plant and equipment significantly increased to approximately RMB 2,164 thousand, indicating substantial capital expenditure growth - The Group purchased property, plant and equipment at a total cost of approximately **RMB 2,164 thousand**, a significant increase from **RMB 51 thousand** in the prior year[42](index=42&type=chunk) [Financial Assets at Fair Value Through Profit or Loss](index=16&type=section&id=Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As of June 30, 2025, financial assets at fair value through profit or loss totaled RMB 17,295 thousand, remaining stable and primarily comprising investments in unlisted and PRC listed equity securities | Item | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Investment in Unlisted Equity Securities | 15,814 | 15,578 | | Investment in Hong Kong Listed Equity Securities | – | 949 | | Investment in PRC Listed Equity Securities | 1,481 | 772 | | Total | 17,295 | 17,299 | [Trade, Prepayments and Other Receivables](index=16&type=section&id=Trade,%20Prepayments%20and%20Other%20Receivables) As of June 30, 2025, trade, prepayments, and other receivables increased by 24.9% to RMB 134,932 thousand, with trade receivables growing by 19.9% | Item | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Trade Receivables (Net) | 112,856 | 94,143 | +19.9% | | Other Receivables (Net) | 2,828 | 1,701 | +66.3% | | Prepayments for Raw Materials | 19,248 | 12,177 | +58.1% | | Total | 134,932 | 108,021 | +24.9% | | Aging of Trade Receivables | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within 1 month | 50,154 | 26,536 | | 1 to 6 months | 42,556 | 41,906 | | 6 months to 1 year | 17,566 | 16,583 | | 1 to 2 years | 9,593 | 14,961 | | Over 2 years | 5,842 | 7,276 | | Total | 125,711 | 107,262 | [Restricted Cash](index=17&type=section&id=Restricted%20Cash) As of June 30, 2025, restricted cash amounted to RMB 6,941 thousand, primarily serving as collateral for bank acceptance bills, a decrease from the prior year-end - Restricted cash, primarily collateral for bank acceptance bills, was **RMB 6,941 thousand** as of June 30, 2025 (December 31, 2024: **RMB 9,646 thousand**)[46](index=46&type=chunk)[5](index=5&type=chunk) [Share Capital](index=17&type=section&id=Share%20Capital) As of June 30, 2025, the company's issued and fully paid share capital remained unchanged at 400,000,000 ordinary shares, with a share capital amount of RMB 3,584 thousand | Item | Number of Shares | Share Capital (RMB '000) | | :--- | :--- | :--- | | Issued and Fully Paid Share Capital (As of June 30, 2025 and As of December 31, 2024) | 400,000,000 | 3,584 | [Trade and Other Payables](index=18&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, trade and other payables decreased by 20.5% to RMB 60,372 thousand, with trade payables declining by 18% | Item | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Trade Payables | 50,645 | 61,746 | -18.0% | | Bills Payable | 6,717 | 9,163 | -26.7% | | Accrued Wages | 1,104 | 1,292 | -14.5% | | Other Taxes Payable | 1,585 | 919 | +72.5% | | Other Payables | 321 | 2,834 | -88.7% | | Total | 60,372 | 75,954 | -20.5% | | Aging of Trade Payables | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within 1 month | 24,933 | 38,042 | | 1 to 6 months | 10,360 | 12,189 | | 6 months to 1 year | 7,459 | 8,772 | | 1 to 2 years | 5,242 | 2,046 | | Over 2 years | 2,651 | 697 | | Total | 50,645 | 61,746 | [Borrowings](index=18&type=section&id=Borrowings) As of June 30, 2025, the Group incurred new short-term bank borrowings of RMB 49,500 thousand, all denominated in RMB and secured by buildings and land use rights | Item | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Short-term Bank Borrowings | 49,500 | – | - The Group's short-term bank borrowings of approximately **RMB 49,500 thousand** are secured by buildings with a net book value of approximately **RMB 12,207 thousand** and land use rights of approximately **RMB 10,614 thousand**[56](index=56&type=chunk) [Related Party Transactions](index=19&type=section&id=Related%20Party%20Transactions) For the six months ended June 30, 2025, key management personnel compensation was approximately RMB 1,383 thousand, a decrease from the prior year - For the six months ended June 30, 2025, key management personnel compensation was approximately **RMB 1,383 thousand** (six months ended June 30, 2024: **RMB 2,247 thousand**)[49](index=49&type=chunk) [Contingent Liabilities](index=19&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[51](index=51&type=chunk) [Events After Reporting Period](index=19&type=section&id=Events%20After%20Reporting%20Period) As of the announcement date, no significant post-reporting period events have materially impacted the Group's business and financial performance - As of the announcement date, no significant post-reporting period events have materially impacted the Group's business and financial performance[52](index=52&type=chunk) [Restatement](index=19&type=section&id=Restatement) The Group restated comparative information for the six months ended June 30, 2024, reclassifying certain listed and unlisted equity securities to financial assets at fair value through profit or loss due to a change in investment strategy and accounting standards - The Group reclassified certain listed equity securities as financial assets at fair value through profit or loss, reflecting a change in investment strategy to actively trade for short-term gains[54](index=54&type=chunk) - Investments in unlisted equity securities with put options were reclassified as financial assets at fair value through profit or loss, as they do not meet the definition of equity instruments under HKAS 32[55](index=55&type=chunk) Impact on Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income for the Six Months Ended June 30, 2024 | Item | Previously Reported (RMB '000) | Prior Period Adjustment (RMB '000) | Restated (RMB '000) | | :--- | :--- | :--- | :--- | | Other Income, Other Costs and Net Other Gains | 872 | (3) | 869 | | Operating Loss | (3,852) | (3) | (3,855) | | Loss for the Period | (4,181) | (3) | (4,184) | | Other Comprehensive Expense for the Period | (18) | 3 | (15) | Impact on Condensed Consolidated Interim Statement of Cash Flows for the Six Months Ended June 30, 2024 | Item | Previously Reported (RMB '000) | Prior Period Adjustment (RMB '000) | Restated (RMB '000) | | :--- | :--- | :--- | :--- | | Purchase of Financial Assets at Fair Value Through Other Comprehensive Income | (15,416) | 15,416 | – | | Purchase of Financial Assets at Fair Value Through Profit or Loss | – | (15,416) | (15,416) | [Management Discussion and Analysis](index=21&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews the Group's business and financial performance for the first half of 2025, highlighting revenue growth, strategic initiatives, future outlook, and key financial risks [Business Review](index=21&type=section&id=Business%20Review) For the first half of 2025, the Group achieved robust financial performance with revenue of RMB 127.5 million, an 84.5% increase, and an improved gross profit margin of 18.0%, driven by infrastructure demand and strategic partnerships - The Group achieved revenue of **RMB 127.5 million** in the first half of 2025, an increase of **84.5%** compared to the corresponding period[58](index=58&type=chunk) - Gross profit margin increased from **9.2%** in the corresponding period to **18.0%** in the current period, primarily due to economies of scale and strategic cost management[58](index=58&type=chunk) - Established a strategic partnership with Anhui Conch Cement Company Limited to ensure a continuous and stable supply of core production materials[59](index=59&type=chunk) [Financial Review](index=22&type=section&id=Financial%20Review) The Group's revenue significantly increased by 84.5% to RMB 127.5 million, gross profit grew by 263.5%, and a net profit of RMB 6.4 million was recorded, with new bank borrowings of RMB 49.5 million - Revenue significantly increased by approximately **RMB 58.4 million** or **84.5%** to approximately **RMB 127.5 million** for the period, primarily due to accelerated regional infrastructure development and a recovery in construction activities[61](index=61&type=chunk) - Gross profit significantly increased by approximately **RMB 16.6 million**, a **263.5%** growth, with gross profit margin improving from **9.2%** to **18.0%**, primarily due to enhanced production capacity, strategic procurement, and prudent project selection[62](index=62&type=chunk) - Administrative expenses increased by **24.4%** to **RMB 16.3 million**, mainly due to the resumption of normal business operations and strategic investments in administrative support projects[64](index=64&type=chunk) - Net profit of approximately **RMB 6.4 million** was recorded for the period, compared to a net loss of approximately **RMB 4.2 million** in the corresponding period[65](index=65&type=chunk) - Bank borrowings as of June 30, 2025, amounted to approximately **RMB 49.5 million**, an increase from December 31, 2024[66](index=66&type=chunk) [Prospects](index=23&type=section&id=Prospects) The Group will capitalize on infrastructure demand in Nantong, focusing on large-scale projects, leveraging strategic partnerships for stable raw material supply and cost optimization, and implementing smart manufacturing solutions to enhance efficiency and cash flow - The Group will continue to leverage the recovering infrastructure demand in Nantong and surrounding areas, focusing on large-scale transportation and urban renewal projects[67](index=67&type=chunk) - Leveraging the strategic partnership with Conch Cement to ensure stable raw material supply and cost optimization, aiming to further enhance gross profit margins while expanding production capacity[67](index=67&type=chunk) - Will implement smart manufacturing solutions to improve operational efficiency, strictly manage working capital, and maintain healthy cash flow[67](index=67&type=chunk) [Employment and Remuneration Policy](index=23&type=section&id=Employment%20and%20Remuneration%20Policy) As of June 30, 2025, the Group employed approximately 46 full-time employees and 150 outsourced workers, with total staff costs of RMB 7.2 million, and provides compensation based on roles, responsibilities, and performance - As of June 30, 2025, the Group employed approximately **46** full-time employees and **150** outsourced workers, with total staff costs of approximately **RMB 7.2 million**[68](index=68&type=chunk) - Remuneration is determined based on job scope, responsibilities, and performance, with discretionary bonuses and employer's liability insurance provided[69](index=69&type=chunk) - Employees and outsourced workers receive internal training on quality control, environmental protection, health, and workplace safety policies[71](index=71&type=chunk) [Liquidity and Financial Resources](index=24&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group had cash and cash equivalents of RMB 23.2 million, borrowings of RMB 49.5 million, a gearing ratio of 24.4%, a current ratio of 1.7 times, and net current assets of RMB 83.5 million | Metric | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Cash and Cash Equivalents (RMB million) | 23.2 | 6.0 | | Borrowings (RMB million) | 49.5 | – | | Gearing Ratio | 24.4% | 0% | | Current Ratio | 1.7 times | 1.9 times | | Net Current Assets (RMB million) | 83.5 | 74.1 | [Market Risk](index=24&type=section&id=Market%20Risk) The Group faces market risks from changes in exchange rates, interest rates, and stock prices that could affect profitability, which management actively manages and monitors - Market risk is the risk that changes in market prices (such as exchange rates, interest rates, and equity prices) will affect the Group's profitability or its ability to achieve its business objectives[75](index=75&type=chunk) [Exchange Rate Risk](index=24&type=section&id=Exchange%20Rate%20Risk) The Group's operations primarily use RMB and HKD, with non-RMB denominated assets and liabilities mainly in HKD, and while there is no hedging policy, directors deem exchange rate risk not significant - The Group's operations primarily use RMB and HKD, with non-RMB denominated assets and liabilities mainly comprising HKD-denominated cash and cash equivalents and other payables[76](index=76&type=chunk) - The Group currently has no foreign currency hedging policy but closely monitors relevant foreign currency exchange rates to manage its foreign currency risk, and the Directors consider exchange rate risk not significant[77](index=77&type=chunk) [Material Investments, Acquisitions and Disposals](index=25&type=section&id=Material%20Investments,%20Acquisitions%20and%20Disposals) In January 2024, the Group acquired a 5% equity interest in Zhejiang Erge Technology Co., Ltd for RMB 15,107,500, with its fair value at RMB 15,814,000 as of June 30, 2025 - On January 18, 2024, the Group acquired a **5%** equity interest in Zhejiang Erge Technology Co., Ltd for **RMB 15,107,500**, a company primarily engaged in cooling systems for renewable energy generation equipment[78](index=78&type=chunk) - As of June 30, 2025, the fair value of the Group's interest in Zhejiang Erge was approximately **RMB 15,814,000**, representing approximately **4.9%** of the Group's total assets[79](index=79&type=chunk) [Pledge of Assets](index=25&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, buildings valued at approximately RMB 12,207 thousand and land use rights of approximately RMB 10,614 thousand were pledged as collateral for the Group's borrowings - As of June 30, 2025, buildings of approximately **RMB 12,207,000** and land use rights of approximately **RMB 10,614,000** were pledged as collateral for the Group's borrowings[81](index=81&type=chunk) [Other Information](index=26&type=section&id=Other%20Information) This section provides other important information, including interim dividends, corporate governance practices, directors' securities dealings, and audit committee review [Interim Dividends](index=26&type=section&id=Interim%20Dividends) The Board does not recommend paying any interim dividend for the period, consistent with the prior year - The Board does not recommend paying any interim dividend for the period (six months ended June 30, 2024: nil)[83](index=83&type=chunk) [Purchase, Redemption or Sale of the Company's Listed Securities](index=26&type=section&id=Purchase,%20Redemption%20or%20Sale%20of%20the%20Company's%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the period, and held no treasury shares as of June 30, 2025 - Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the period[84](index=84&type=chunk) [Code on Corporate Governance Practices](index=26&type=section&id=Code%20on%20Corporate%20Governance%20Practices) The company has adopted and complied with the Corporate Governance Code, except for the separation of Chairman and CEO roles, which the Board believes is adequately safeguarded - The company has adopted and complied with the Corporate Governance Code set out in Appendix C1 of the Listing Rules during the period, except for Code Provision C.2.1 (separation of the roles of Chairman and Chief Executive Officer)[85](index=85&type=chunk)[86](index=86&type=chunk) - Ms Wang Xianyu serves as both the Chairperson of the Board and the Chief Executive Officer of the Group, an arrangement the Board believes is in the Group's best interests and adequately safeguarded to balance power[86](index=86&type=chunk) [Model Code for Securities Transactions by Directors](index=27&type=section&id=Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all directors confirmed compliance during the period - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules, and all Directors have confirmed compliance with the Code during the period[87](index=87&type=chunk) [Audit Committee](index=27&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, reviews and monitors financial reporting, risk management, and internal controls, and has reviewed the financial information in this interim results announcement - The Audit Committee comprises three independent non-executive Directors, whose primary responsibilities include reviewing and monitoring the Group's financial reporting process, risk management, and internal control systems[88](index=88&type=chunk) - The financial information in this interim results announcement has not been audited by the company's external auditors but has been reviewed by the Audit Committee[89](index=89&type=chunk) [Publication of Unaudited Interim Report](index=27&type=section&id=Publication%20of%20Unaudited%20Interim%20Report) The company's 2025 interim report will be published in due course on the HKEXnews website and the company's website - The company's 2025 interim report will be published in due course on the HKEXnews website www.hkexnews.hk and the company's website www.tailamgroup.com[90](index=90&type=chunk) [Acknowledgement](index=27&type=section&id=Acknowledgement) The Board extends its sincere gratitude to shareholders, management, all employees, customers, and business partners, acknowledging them as the cornerstone of the company's success - The Board extends its sincere gratitude to shareholders, management, all employees, customers, and business partners, acknowledging them as the cornerstone of the company's success[91](index=91&type=chunk) [Board of Directors Information](index=27&type=section&id=Board%20of%20Directors%20Information) As of the announcement date, the Board comprises Executive Directors Ms Wang Xianyu (Chairperson and CEO), Mr Wang Chaowei, and Ms Jiang Yin Juan; Non-executive Director Mr Wang Liangyou; and Independent Non-executive Directors Ms Huang Xiaoyan, Mr Li Zhenyu, and Mr Cui Yushu - Executive Directors are Ms Wang Xianyu (Chairperson and CEO), Mr Wang Chaowei, and Ms Jiang Yin Juan; Non-executive Director is Mr Wang Liangyou; Independent Non-executive Directors are Ms Huang Xiaoyan, Mr Li Zhenyu, and Mr Cui Yushu[93](index=93&type=chunk)

Core Viewpoint - The company, Tailin Construction (06193.HK), has announced a board meeting scheduled for August 22, 2025, to consider and approve its unaudited consolidated interim results for the six months ending June 30, 2025, and to discuss the potential declaration of an interim dividend, if applicable [1] Group 1 - The board meeting will take place on August 22, 2025 [1] - The meeting will focus on the unaudited consolidated interim results for the six months ending June 30, 2025 [1] - The company will also consider the distribution of an interim dividend during the meeting [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚 賴該等內容而引致之任何損失承擔任何責任。 主席、執行董事兼行政總裁 王嫻俞 香港，二零二五年八月十二日 於本公告日期，執行董事為王嫻俞女士（主席兼行政總裁）、王朝緯先生及蔣銀娟女士；非執 行董事為王良友先生；以及獨立非執行董事為黃小燕女士、黎振宇先生及崔玉舒先生。 董事會會議日期 泰林科建控股有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此宣 佈，本公司將於二零二五年八月二十二日（星期五）舉行董事會會議，藉以（其中包 括）考慮及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未經審核 綜合中期業績及其發佈，並考慮派發中期股息（如有）。 承董事會命 泰林科建控股有限公司 Tailam Tech Construction Holdings Limited 泰林科建控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：6193） ...

Core Viewpoint - The company, Tailin Construction (06193.HK), expects to report a consolidated profit of approximately RMB 6.4 million for the six months ending June 30, 2025, a significant turnaround from a consolidated loss of approximately RMB 4.2 million for the same period in 2024 [1]. Group 1 - The turnaround from loss to profit is primarily attributed to increased demand for ready-mixed concrete and PHC piles in Nantong and surrounding areas during the first half of 2025 [1]. - The improvement in profitability is also supported by operational scale efficiencies and strategic cost management, which have significantly enhanced the gross profit margin [1].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚 賴該等內容而引致之任何損失承擔任何責任。 Tailam Tech Construction Holdings Limited 泰林科建控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：6193） 二零二五年六月三十日止六個月之中期業績公告。本公司截至二零二五年六月三十日 止六個月之中期業績預期將於二零二五年八月下旬公佈。 股東及潛在投資者在買賣本公司證券時，務請審慎行事。 承董事會命 泰林科建控股有限公司 正面盈利預告 本公告乃泰林科建控股有限公司（「本公司」，連同其附屬公司統稱「本集團」）根 據香港聯合交易所有限公司證券上市規則第13.09條及香港法例第571章證券及期貨條 例第XIVA 部項下之內幕消息條文而作出。 本公司董事（「董事」）會（「董事會」）謹此知會本公司股東（「股東」）及潛在 投資者，根據本集團截至二零二五年六月三十日止六個月的未經審核綜合管理賬目 （「管理賬目」）以及董事會現時可得資料的初步評估，截至二零二五年六月 ...

呈交日期: 2025年8月4日 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 公司名稱: 泰林科建控股有限公司 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 06193 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 1,000,000,000 | HKD | | 0.01 HKD | | 10,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | 0 | | 本月底結存 | | | 1,000,000,000 | HKD | | 0.01 HKD | | 10,000,000 | 本月底法定/註冊股本總額： HKD 10,000 ...

Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue decreased to RMB 185.332 million, down 24.4% from RMB 245.031 million in 2023[9] - The gross profit for 2024 was RMB 18.357 million, representing a gross margin of 9.9%, compared to RMB 33.092 million and a gross margin of 13.5% in 2023[9] - The company reported a net loss of RMB 11.020 million for 2024, an improvement from a net loss of RMB 17.637 million in 2023[9] - Revenue decreased from approximately RMB 245,000,000 for the year ended December 31, 2023, to approximately RMB 185,300,000 for the year ended December 31, 2024, representing a decline of about RMB 59,700,000 or approximately 24.4%[25] - Gross profit fell from approximately RMB 33,100,000 for the year ended December 31, 2023, to approximately RMB 18,400,000 for the year ended December 31, 2024, a decrease of about RMB 14,700,000 or approximately 44.4%[26] - The company reported a loss of approximately RMB 11,000,000 for the year ended December 31, 2024, down from a loss of approximately RMB 17,600,000 for the year ended December 31, 2023, a reduction of about RMB 6,600,000 or approximately 37.5%[29] Assets and Equity - Total assets decreased to RMB 280.530 million in 2024, down from RMB 289.379 million in 2023[10] - The company's total equity attributable to owners decreased to RMB 195.947 million in 2024 from RMB 207.060 million in 2023[10] - Non-current assets increased slightly to RMB 126.855 million in 2024 from RMB 123.195 million in 2023[10] Cost and Expenses - Gross margin decreased from approximately 13.5% to approximately 9.9%, a decline of about 3.6% due to rising raw material and labor costs[26] - Sales and marketing expenses decreased from approximately RMB 4,000,000 for the year ended December 31, 2023, to approximately RMB 3,500,000 for the year ended December 31, 2024, a reduction of about RMB 500,000 or approximately 12.5%[27] - Administrative expenses decreased from approximately RMB 33,700,000 for the year ended December 31, 2023, to approximately RMB 30,700,000 for the year ended December 31, 2024, a decrease of about RMB 3,000,000 or approximately 8.9%[28] Strategic Partnerships and Market Outlook - The company established a strategic cooperation agreement with Anhui Conch Cement Co., Ltd. to secure a stable procurement channel for cement products, which is expected to alleviate current cost pressures[15] - The company anticipates a recovery in product demand due to the resumption of civil engineering projects and significant infrastructure initiatives in the Nantong area[17] - The company is optimistic about future growth opportunities in the Shanghai region following the strategic partnership with Conch Cement[15] Employment and Workforce - The company employed 49 full-time employees and 127 outsourced workers as of December 31, 2024, compared to 58 full-time employees and 82 outsourced workers as of December 31, 2023[31] Risk Management - The board of directors has identified various risks and uncertainties that may impact the company's financial condition and operational performance[68] - Market risk is a significant concern, influenced by fluctuations in market prices such as exchange rates, interest rates, and stock prices[69] - The company’s management actively monitors and manages these risks to ensure timely and effective responses[69] Corporate Governance - The board consists of seven members, including three executive directors and three independent non-executive directors, ensuring a diverse governance structure[171] - The company has adopted the corporate governance code and has been compliant with its provisions throughout the year ending December 31, 2024[163] - The board is committed to maintaining high corporate governance standards and will continue to review and improve governance practices[167] Share Capital and Stock Options - As of December 31, 2024, the company has issued a total of 400,000,000 shares[105] - The maximum number of shares that can be issued under the share option plan is capped at 10% of the total issued shares as of the listing date, which amounts to 40,000,000 shares[115] - The share option plan aims to incentivize eligible individuals to enhance their performance and efficiency within the group[112] Compliance and Legal Matters - The group has established compliance procedures to adhere to applicable laws and regulations, with no significant violations reported as of December 31, 2024[90] - The audit committee reviewed the group's financial statements for the year ending December 31, 2024, ensuring compliance with applicable financial reporting standards[155] - There were no significant legal proceedings or arbitration involving the company or its subsidiaries as of December 31, 2024[153] Environmental and Social Responsibility - The group emphasizes the importance of environmental protection and has implemented measures to reduce energy consumption and waste generation[89] - The group made charitable donations amounting to RMB 3,000 for the year ending December 31, 2024, compared to RMB 6,000 in 2023[150]

Financial Performance - For the year ending December 31, 2024, the total revenue was RMB 185,332,000, a decrease of 24.4% compared to RMB 245,031,000 in 2023[3] - The cost of sales for the same period was RMB 166,975,000, resulting in a gross profit of RMB 18,357,000, down 44.5% from RMB 33,092,000 in 2023[3] - Operating loss for the year was RMB 11,643,000, compared to a loss of RMB 10,949,000 in the previous year, indicating a deterioration in operational performance[3] - The net loss attributable to equity holders of the company was RMB 11,020,000, an improvement from a loss of RMB 17,637,000 in 2023[3] - Total revenue for the year ended December 31, 2024, was RMB 185,332 thousand, a decrease of 24.4% from RMB 245,031 thousand in 2023[12] - Sales of PHC piles amounted to RMB 115,594 thousand, down from RMB 120,581 thousand in the previous year, representing a decline of 4.1%[12] - Sales of ready-mixed concrete decreased significantly from RMB 115,013 thousand in 2023 to RMB 68,877 thousand in 2024, a drop of 40.0%[12] - The company reported a net financing income of RMB 172,000 for 2024, compared to a net loss of RMB 845,000 in 2023[19] - The company incurred a basic loss per share of RMB 0.03 for the year ended December 31, 2024, compared to RMB 0.04 in 2023[26] - Total loss attributable to equity holders for 2024 was RMB 11,020,000, an improvement from RMB 17,637,000 in 2023[26] - The company's loss for the year ending December 31, 2024, was approximately RMB 11,000,000, a reduction of about RMB 6,600,000 or approximately 37.5% from the loss of RMB 17,600,000 for the year ended December 31, 2023[45] Assets and Liabilities - Total assets as of December 31, 2024, were RMB 280,530,000, a decrease from RMB 289,379,000 in 2023[4] - Total liabilities increased to RMB 84,583,000 in 2024 from RMB 82,319,000 in 2023, reflecting a rise in trade and other payables[5] - Cash and cash equivalents decreased significantly to RMB 6,003,000 from RMB 44,061,000 in the previous year, indicating liquidity challenges[4] - Trade receivables increased from RMB 93,745 thousand in 2023 to RMB 107,262 thousand in 2024, representing a growth of 14.4%[28] - The total value of trade and other payables increased from RMB 68,645 thousand in 2023 to RMB 75,954 thousand in 2024, reflecting an increase of 10.5%[37] - The company’s total other receivables decreased from RMB 2,071 thousand in 2023 to RMB 1,701 thousand in 2024, a decline of 17.8%[28] - The group has a deferred tax liability of RMB 41,115,000 related to undistributed profits as of December 31, 2024, slightly down from RMB 42,575,000 in 2023[24] Expenses - Employee benefits expenses decreased to RMB 15,211 thousand from RMB 16,926 thousand, a reduction of 10.1%[17] - Sales and marketing expenses decreased by approximately RMB 500,000 or about 12.5%, from approximately RMB 4,000,000 for the year ended December 31, 2023, to approximately RMB 3,500,000 for the year ending December 31, 2024[43] - Administrative expenses decreased by approximately RMB 3,000,000 or about 8.9%, from approximately RMB 33,700,000 for the year ended December 31, 2023, to approximately RMB 30,700,000 for the year ending December 31, 2024[44] Corporate Governance and Compliance - The company adheres to high corporate governance standards to protect shareholder interests and enhance corporate value[74] - The company continuously reviews and strengthens its corporate governance practices to ensure compliance with relevant regulations[74] - The audit committee consists of three independent non-executive directors, ensuring oversight of the financial statements for the year ending December 31, 2024[77] - The company has adopted the standard code for directors' securities trading as per the listing rules, confirming compliance during the reporting period[76] Strategic Initiatives - A strategic cooperation agreement was established with Anhui Conch Cement Co., Ltd. to enhance business operations in the Shanghai region[58] - The strategic partnership with Anhui Conch is expected to alleviate current cost pressures and ensure a stable supply of quality cement products[59] - Significant infrastructure projects in the surrounding area of Nantong are anticipated to boost product demand for the group[60] Risk Management - The company identifies various financial risks, including market risk, interest rate risk, foreign exchange risk, liquidity risk, operational risk, investment risk, and human resource risk[66][67][68][69][70][72][73] - The company monitors cash flow and maintains sufficient cash levels to manage liquidity risk effectively[70] Employee Relations - The company emphasizes the importance of maintaining strong relationships with employees, customers, and business partners for sustainable development[64] - The company provides a fair and safe working environment, promoting employee diversity and offering competitive compensation and benefits based on performance[64] - The company employed 49 full-time employees and 127 outsourced workers as of December 31, 2024, compared to 58 full-time employees and 82 outsourced workers in 2023[46] Investments - The group acquired 3,021,500 shares of Zhejiang Erge Technology Co., Ltd. for RMB 15,107,500, representing 5% of the issued share capital[52] - As of December 31, 2024, the fair value of the group's equity in Zhejiang Erge is approximately RMB 15,578,000, accounting for about 5.54% of the total assets[53] - The group recognized unrealized gains of RMB 470,000 from its investment in Zhejiang Erge during the year[53] Taxation - The applicable corporate income tax rate for the company's subsidiaries in mainland China is 25%, with a reduced rate of 15% for those qualifying as high-tech enterprises[21] - The company has utilized additional tax deductions for qualified R&D expenses, increasing from 150% to 200% for manufacturing enterprises since 2021[22] - The current income tax expense for the year ended December 31, 2024, was zero, while it was RMB 1,114,000 in 2023[20] - Deferred income tax expense decreased from RMB 4,729,000 in 2023 to RMB 451,000 in 2024[20] Shareholder Information - The company will not recommend a final dividend for the year ending December 31, 2024, similar to the previous year[79] - The company did not declare any dividends for the year ending December 31, 2024, consistent with the previous year[38] - The company will suspend share transfer registration from June 3, 2025, to June 6, 2025, to determine shareholder eligibility for the annual general meeting[82] - The annual results announcement has been published on the stock exchange and the company's website, with the annual report to be sent to shareholders as required[83]

Financial Performance - The company's revenue decreased by approximately RMB 56.3 million or 44.9% to about RMB 69.1 million for the six months ended June 30, 2024, compared to approximately RMB 125.4 million in the corresponding period [5]. - Gross profit fell by approximately RMB 9.3 million or 59.6% to about RMB 6.3 million, with the gross profit margin decreasing from approximately 12.5% to about 9.2% [6]. - The company recorded a net loss of approximately RMB 4.2 million for the period, compared to a net profit of approximately RMB 1.7 million in the corresponding period [8]. - Revenue for the six months ended June 30, 2024, was RMB 69,090,000, a decrease of 44.9% compared to RMB 125,400,000 for the same period in 2023 [31]. - Gross profit for the same period was RMB 6,325,000, down 59.5% from RMB 15,617,000 in 2023 [31]. - Operating loss for the six months was RMB 3,852,000, compared to an operating profit of RMB 2,384,000 in the previous year [31]. - Total comprehensive loss for the period was RMB 4,199,000, contrasting with a total comprehensive income of RMB 129,000 in 2023 [31]. - The company reported a basic and diluted loss per share of RMB (0.010) for the period, compared to earnings of RMB 0.004 per share in 2023 [31]. - For the six months ended June 30, 2024, the company reported a loss attributable to equity holders of RMB 4,181,000, compared to a profit of RMB 1,699,000 for the same period in 2023 [58]. - The basic earnings per share for the six months ended June 30, 2024, was RMB (0.010), a decrease from RMB 0.004 in the same period of 2023 [58]. Expenses and Cost Management - Sales and marketing expenses decreased by RMB 300,000 or 17.6% to approximately RMB 1.4 million [7]. - Administrative expenses decreased by approximately RMB 1.7 million or 11.5% to about RMB 13.1 million due to reduced business activity levels [8]. - The cost of raw materials and consumables used was RMB 45,505,000, down from RMB 96,894,000 in the previous year [48]. - The management's compensation for the six months ended June 30, 2024, was approximately RMB 2,247,000, a decrease from RMB 2,430,000 for the same period in 2023 [69]. Cash Flow and Liquidity - As of June 30, 2024, the group held cash and cash equivalents of approximately RMB 27,100,000, down from RMB 44,100,000 as of December 31, 2023 [11]. - Cash generated from operating activities for the six months ended June 30, 2024, was RMB 3,694,000, a decrease of 64.7% from RMB 10,447,000 in the same period in 2023 [35]. - Net cash used in investing activities was RMB 15,530,000 for the six months ended June 30, 2024, compared to RMB 1,674,000 in the same period in 2023, indicating a significant increase in investment outflows [35]. - Cash and cash equivalents decreased by RMB 17,075,000 during the six months ended June 30, 2024, compared to a decrease of RMB 16,261,000 in the same period in 2023 [35]. - The company’s cash and cash equivalents as of June 30, 2024, stood at RMB 27,096,000, compared to RMB 26,014,000 as of June 30, 2023 [35]. Assets and Liabilities - Total assets as of June 30, 2024, amounted to RMB 257,564,000, down from RMB 289,379,000 as of December 31, 2023 [32]. - Total liabilities decreased to RMB 54,703,000 from RMB 82,319,000 at the end of 2023 [33]. - The company has zero bank borrowings as of June 30, 2024, down from approximately RMB 5 million as of December 31, 2023 [8]. - The group had no interest-bearing borrowings as of June 30, 2024, resulting in a debt-to-equity ratio of 0%, compared to 2.4% as of December 31, 2023 [11]. - Trade payables to third parties increased to RMB 61,389 thousand as of June 30, 2024, from RMB 43,383 thousand as of December 31, 2023, marking a 41.6% rise [65]. - The total liabilities for trade and other payables reached RMB 68,645 thousand as of June 30, 2024, compared to RMB 45,214 thousand as of December 31, 2023, indicating a 52.1% increase [66]. Strategic Focus and Future Outlook - The company plans to focus on enhancing manufacturing processes and digital transformation of equipment to maintain production capacity and flexibility [9]. - The company aims to optimize cost structure and diversify revenue sources to improve performance in the second half of the year [9]. - The company remains confident in the long-term prospects of its core business despite facing significant market challenges in the first half of 2024 [9]. - The company has taken measures to mitigate risks related to economic uncertainty, including prudent credit control strategies [4]. Shareholder Information - As of June 30, 2024, the major shareholders included Ms. Wang Xianyu with a 57.13% stake and Mr. Wang Liangyou with a combined stake of 10.46% [19]. - Apax Investment holds 228,536,000 shares, representing 57.13% of the issued share capital as of June 30, 2024 [22]. - Glorycore Investment owns 26,870,000 shares, accounting for 6.72% of the issued share capital [22]. - The total issued share capital of the company as of June 30, 2024, is 400,000,000 shares [22]. - The company has a stock option plan that allows for the issuance of up to 40,000,000 shares, equivalent to 10% of the issued share capital [24]. - No stock options have been granted, canceled, or exercised under the stock option plan since its adoption [24]. Corporate Governance - The company is committed to maintaining high corporate governance standards and has adopted the corporate governance code as per the listing rules [25]. - The roles of the Chairman and CEO are not separated, with the current CEO also serving as the Chairman, which the board believes is in the best interest of the company [26]. - There have been changes in director information, including the resignation of the CEO of a subsidiary while retaining other roles [27]. Other Information - The board did not recommend any interim dividend for the period ending June 30, 2023 [17]. - The group did not engage in any purchase, sale, or redemption of its listed securities during the period [18]. - The company reported no significant contingent liabilities as of June 30, 2024 [15]. - There were no significant events after June 30, 2024, that would materially affect the company's business and financial performance [71].

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 69,090,000, compared to RMB 125,400,000 for the same period in 2023, representing a decrease of 44.9%[2] - Gross profit for the same period was RMB 6,325,000, down from RMB 15,617,000 in 2023, indicating a decline of 59.6%[2] - The operating loss for the six months was RMB 3,852,000, compared to an operating profit of RMB 2,384,000 in the previous year[2] - The net loss for the period was RMB 4,181,000, compared to a profit of RMB 1,699,000 in the corresponding period of 2023[2] - The company reported a basic and diluted loss per share of RMB (0.010) for the six months ended June 30, 2024, compared to earnings per share of RMB 0.004 in the same period of 2023[2] - The group reported a net other income of RMB 872,000 for the six months ended June 30, 2024, compared to RMB 3,317,000 in the previous year, indicating a decline[23] - The group recorded a net loss of approximately RMB 4.2 million for the period, compared to a net profit of approximately RMB 1.7 million in the corresponding period[49] Assets and Liabilities - Total assets as of June 30, 2024, were RMB 257,564,000, down from RMB 289,379,000 as of December 31, 2023, reflecting a decrease of 11%[3] - Cash and cash equivalents decreased to RMB 27,096,000 from RMB 44,061,000, a decline of 38.5%[3] - Total equity attributable to the owners of the company was RMB 202,861,000, down from RMB 207,060,000 at the end of 2023[3] - Trade and other payables decreased to RMB 45,214,000 from RMB 68,645,000, a reduction of 34.2%[5] - Trade receivables from third parties decreased to RMB 75,026,000 as of June 30, 2024, down from RMB 93,745,000 as of December 31, 2023, representing a decline of approximately 20%[34] - Total trade payables decreased to RMB 43,383,000 as of June 30, 2024, from RMB 61,389,000 as of December 31, 2023, reflecting a decrease of approximately 29%[38] Cash Flow - Operating cash inflow for the six months ended June 30, 2024, was RMB 3,694,000, a decrease of 64.7% compared to RMB 10,447,000 in the same period of 2023[7] - The company reported a net cash inflow from operating activities of RMB 3,678,000 for the six months ended June 30, 2024, down from RMB 9,902,000 in the same period of 2023[7] - Net cash used in investing activities was RMB 15,530,000, significantly higher than RMB 1,674,000 in the previous year, indicating increased investment expenditures[7] - Bank borrowings received amounted to RMB 27,000,000, while repayments totaled RMB 32,000,000, reflecting a net cash outflow from financing activities of RMB 5,223,000[7] Revenue Breakdown - Revenue from PHC piles was RMB 41,414,000, down 16.5% from RMB 49,849,000 in the previous year[18] - Revenue from ready-mixed concrete was RMB 26,115,000, a decline of 63.7% from RMB 71,892,000 in the same period last year[18] - The group's revenue decreased by approximately RMB 56.3 million or 44.9% to about RMB 69.1 million due to a prolonged slowdown in the construction and real estate market, leading to reduced demand for the group's products[45] Cost and Expenses - The cost of raw materials and consumables for the six months ended June 30, 2024, was RMB 45,505,000, a decrease of 53.1% from RMB 96,894,000 in the same period of 2023[22] - The group incurred financing costs of RMB 96,000, down from RMB 912,000 in the previous year, reflecting a significant reduction in interest expenses[21] - Administrative expenses decreased by approximately RMB 1.7 million or 11.5% to about RMB 13.1 million due to lower business activity levels[48] - The group reduced selling and marketing expenses by approximately RMB 300,000 or 17.6% to about RMB 1.4 million[47] Corporate Governance and Compliance - The company has adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2024, which may impact future financial reporting[11] - The audit committee, consisting of three independent non-executive directors, oversees the financial reporting process and risk management[65] - The interim financial information has not been audited but has been reviewed by the audit committee[66] - The company is committed to maintaining high corporate governance standards and has adopted the corporate governance code[62] Future Outlook - Management expects a revival of projects in the third and fourth quarters of 2024, which is anticipated to create new opportunities for growth[44] - The group is focused on diversifying revenue sources and optimizing cost structures to improve performance in the second half of the year[51] - The group aims to enhance manufacturing processes and digital transformation to maintain production capacity and flexibility while ensuring high product quality and customer satisfaction[51] Investments - The company has made significant investments in equity securities, with a total fair value measurement of RMB 22,329,000 as of June 30, 2024[15] - The company holds 5% equity in Zhejiang Erge Technology Co., Ltd., a company engaged in renewable energy systems, as of June 30, 2024[33] - On January 18, 2024, the group acquired 5% of Zhejiang Erge Technology Co., Ltd. for RMB 15,107,500, completing the purchase on January 29, 2024[57] Miscellaneous - The company did not declare or pay any dividends for the six months ending June 30, 2024, consistent with the previous period[27] - The group has no significant foreign exchange risk as it primarily operates in Renminbi and Hong Kong dollars, with no hedging policies in place[56] - There were no significant investments, acquisitions, or disposals of subsidiaries during the reporting period[57] - There were no significant events after June 30, 2024, that would materially affect the company's business and financial performance[43] - The company has no significant contingent liabilities as of June 30, 2024[42]