Core Viewpoint - The Sci-Tech ETF (588050) opened with a slight increase of 0.63%, indicating a positive market sentiment towards technology stocks [1] Group 1: ETF Performance - The Sci-Tech ETF (588050) opened at 1.435 yuan, reflecting a modest gain [1] - The ETF's performance benchmark is the Shanghai Stock Exchange Sci-Tech 50 Index [1] - Since its inception on September 28, 2020, the ETF has returned -0.57%, while its return over the past month is -6.98% [1] Group 2: Major Holdings - Key stocks within the ETF include: - SMIC (中芯国际) up by 1.77% - Haiguang Information (海光信息) up by 2.25% - Cambrian (寒武纪) up by 2.82% - Lanke Technology (澜起科技) up by 1.30% - Zhongwei Company (中微公司) up by 1.42% - United Imaging Healthcare (联影医疗) up by 0.11% - Kingsoft Office (金山办公) down by 0.52% - Chipone (芯原股份) up by 2.41% - Roborock (石头科技) up by 0.33% - Transsion Holdings (传音控股) unchanged [1]

致：香港交易及結算所有限公司 公司名稱: 康利國際控股有限公司 (於開曼群島註冊成立的成員有限公司) 呈交日期: 2025年11月4日 FF301 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10月31日 狀態: 新提交 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) | 06890 | 說明 | 普通股 | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 5,000,000,000 | HKD | | 0.001 HKD | | 5,000,000 | | 增加 / 減少 (-) | | | | | | HKD | | | | 本月底結存 | | | 5,000,000,000 | HKD | | 0.001 HKD | | 5,000,000 ...

Group 1 - The core point of the article highlights the performance of the Chip 50 ETF (516920), which opened at 1.040 yuan with a slight increase of 0.19% [1] - The major holdings of the Chip 50 ETF include companies such as SMIC, Cambricon, and others, with varying performance on the opening day [1] - The ETF's performance benchmark is the CSI Chip Industry Index return, managed by Huatai-PineBridge Fund Management Co., Ltd., with a return of 3.84% since its inception on July 27, 2021, and a recent one-month return of -7.43% [1] Group 2 - Specific stock performances include SMIC up by 0.66%, Cambricon up by 1.74%, and others like Huada Semiconductor and North Huachuang showing minimal changes [1] - The article provides a detailed overview of the ETF's performance metrics and its management structure, indicating a focus on the semiconductor industry [1]

Core Viewpoint - The article discusses the performance of the Kexin 50 ETF (588940) and its major holdings, highlighting a decline in the ETF's opening price and the performance of its constituent stocks [1]. Group 1: ETF Performance - Kexin 50 ETF (588940) opened down by 1.79%, priced at 1.423 yuan [1]. - Since its establishment on May 21, 2025, the fund has achieved a return of 44.60%, while its return over the past month has been -5.12% [1]. Group 2: Major Holdings Performance - Major holdings in the ETF include: - SMIC (中芯国际) down by 1.76% - Haiguang Information (海光信息) down by 1.46% - Cambrian (寒武纪) down by 2.91% - Lanke Technology (澜起科技) down by 1.69% - Zhongwei Company (中微公司) down by 2.28% - United Imaging (联影医疗) down by 0.09% - Kingsoft Office (金山办公) up by 1.12% - Chipone (芯原股份) down by 0.56% - Stone Technology (石头科技) down by 0.01% - Transsion Holdings (传音控股) down by 0.12% [1].

Group 1 - The Hang Seng Index rose by 0.54%, gaining 141 points to close at 26,487 points, while the Hang Seng Tech Index increased by 0.31%. The morning trading volume in Hong Kong stocks reached HKD 178.7 billion [1] - Newly listed stock Dipu Technology (01384) surged by 36%, while Baima Tea (06890) rose over 8%, and Haixi New Drug (02637) increased by 7.59% [2] - The demand for energy storage driven by AI is expected to increase significantly, with CITIC Securities forecasting that total lithium battery demand will exceed 2,700 GWh next year, a year-on-year growth rate of over 30%. Energy storage battery demand is projected to exceed 900 GWh, leading to potential shortages in various lithium sectors [2] Group 2 - Ganfeng Lithium (01772) rose over 12%, and Tianqi Lithium (09696) increased by over 8% due to the strong performance of lithium mining stocks [2] - The energy storage sector saw significant gains, with Zhongchu Innovation (03931) rising over 12%, CATL (03750) increasing by 2.59%, and Shuangdeng Co. (06969) gaining over 7% [2] - Ruipu Lanjun (00666) increased by over 8% after the company launched several strategic new products covering energy storage, commercial vehicles, and passenger cars [3] Group 3 - Aneng Logistics (09956) surged by 22% following a privatization proposal from a major shareholder's consortium, with a premium rate exceeding 48% [4] - China Duty Free Group (01880) rose by 3% as the entire Hainan island is set to close in December, which is expected to boost the overall development of Hainan's tourism retail market [5] - China Hongqiao (01378) increased by nearly 7% due to recent production cuts in overseas electrolytic aluminum, which may further widen the supply-demand gap in the electrolytic aluminum market [6] Group 4 - Anjii Food (02648) rose over 8% with a 11.8% year-on-year growth in net profit attributable to shareholders in the third quarter, supported by a collaborative development across all channels [7] - The engineering machinery sector saw significant gains, with September exports continuing to grow year-on-year, and leading companies like Sany Heavy Industry (06031) rising by 9%, Senson International (02155) increasing by 8.02%, and China National Heavy Duty Truck Group (03808) gaining 3.7% [7] Group 5 - WuXi AppTec (02359) fell over 4% as the actual controller's shareholders plan to reduce their holdings by no more than 2% of the company's A-shares [8]

FF301 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9月30日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 康利國際控股有限公司 (於開曼群島註冊成立的成員有限公司) 呈交日期: 2025年10月2日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 06890 | 說明 | 普通股 | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 5,000,000,000 | HKD | | 0.001 HKD | | 5,000,000 | | 增加 / 減少 (-) | | | | | | HKD | | | | 本月底結存 | | | 5,000,000,000 | HKD | | 0.001 HKD | | 5,000,000 ...

KANGLI INTERNATIONAL HOLDINGS LIMITED 康 利 國 際 控 股 有 限 公 司 (Incorporated in the Cayman Islands with limited liability) （於開曼群島註冊成立的有限公司） Dear Non-Registered Holder(Note 1) , KangLi International Holdings Limited (the "Company") - Notice of publication of 2025 Interim Report ("Current Corporate Communication") on the Company's website The English and Chinese versions of the Company's Current Corporate Communications are available on the Company's website at www.jnpmm.com and the website of The Stock Exchange o ...

KANGLI INTERNATIONAL HOLDINGS LIMITED 康 利 國 際 控 股 有 限 公 司 It is the responsibility of registered shareholders to provide a functional email address. If you have not provided your email address to the Company or need to update your email address, the Company recommends you to provide your email address by completing, signing the enclosed Change Request Form and returning to the Branch Share Registrar at the above-mentioned address by post or by email to 6890-ecom@vistra.com. If the Company does not have your ...

[Company Information](index=3&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) This section provides an overview of the company's governance structure, key personnel, and operational details [Board of Directors and Company Secretary](index=3&type=section&id=%E8%91%A3%E4%BA%8B) The company's board comprises executive and independent non-executive directors, with Mr. Zhong Youtang serving as Company Secretary - Executive Directors include Mr. Mei Zefeng (Chairman), Ms. Liu Ping (Chief Executive Officer), Mr. Zhang Zhihong, Ms. Lu Xiaoyu, and Mr. Xu Chao[3](index=3&type=chunk) - Independent Non-executive Directors include Mr. Liu Yingjie, Mr. Yang Guang, and Mr. Cao Cheng[3](index=3&type=chunk) - The Company Secretary is Mr. Zhong Youtang[3](index=3&type=chunk) [Committees](index=3&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The company maintains Audit, Remuneration, and Nomination Committees, primarily chaired or composed of independent non-executive directors - The Audit Committee is chaired by Mr. Liu Yingjie, with members Mr. Yang Guang and Mr. Cao Cheng[3](index=3&type=chunk) - The Remuneration Committee is chaired by Mr. Cao Cheng, with members Mr. Liu Yingjie, Mr. Yang Guang, and Mr. Zhang Zhihong[3](index=3&type=chunk) - The Nomination Committee is chaired by Ms. Liu Ping, with members Mr. Liu Yingjie, Mr. Yang Guang, and Mr. Cao Cheng[3](index=3&type=chunk) [Registered and Business Locations](index=3&type=section&id=%E8%A8%BB%E5%86%8A%E8%BE%A6%E4%BA%8B%E8%99%95) The company's registered office is in the Cayman Islands, with its China headquarters in Changzhou, Jiangsu, and principal Hong Kong office in Central - The registered office is located at Cricket Square, Hutchins Drive, Cayman Islands[3](index=3&type=chunk) - The China headquarters is located at Wuyi Village, Hengshanqiao Town, Wujin District, Changzhou City, Jiangsu Province[3](index=3&type=chunk) - The principal place of business in Hong Kong is located at 18th Floor, 9 Queen's Road Central, Central, Hong Kong[3](index=3&type=chunk) [Auditor and Legal Advisor](index=3&type=section&id=%E6%A0%B8%E6%95%B8%E5%B8%AB) KPMG serves as the company's auditor, and Siao, Wen and Leung is the Hong Kong legal advisor - The auditor is KPMG[3](index=3&type=chunk) - The Hong Kong legal advisor is Siao, Wen and Leung[3](index=3&type=chunk) [Share Registrar](index=3&type=section&id=%E8%82%A1%E4%BB%BD%E9%81%8E%E6%88%B6%E7%99%BB%E8%A8%98%E7%B8%BD%E8%99%95) The company's principal share registrar is in the Cayman Islands, with Tricor Investor Services Limited as its Hong Kong branch share registrar - The principal share registrar is Conyers Trust Company (Cayman) Limited[3](index=3&type=chunk) - The Hong Kong branch share registrar is Tricor Investor Services Limited[4](index=4&type=chunk) [Listing Information](index=4&type=section&id=%E4%B8%8A%E5%B8%82%E8%B3%87%E6%96%99) The company's ordinary shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited under stock code 6890.HK - The company's ordinary shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited[4](index=4&type=chunk) - The stock code is 6890.HK[4](index=4&type=chunk) [Consolidated Statement of Profit or Loss](index=4&type=section&id=%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) This section presents the company's financial performance, including revenue, gross profit, and net profit, for both continuing and discontinued operations [Continuing Operations](index=4&type=section&id=%E6%8C%81%E7%BA%8C%E7%B6%93%E7%87%9F%E6%A5%AD%E5%8B%99) For the six months ended June 30, 2025, revenue and profitability from continuing operations significantly declined, with revenue down 27.0% and profit down 83.0% Continuing Operations Key Financial Data (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 731,393 | 1,002,304 | -27.0% | | Cost of sales | (672,934) | (881,935) | -23.7% | | Gross profit | 58,459 | 120,369 | -51.4% | | Other income | 2,295 | 3,621 | -36.6% | | Selling expenses | (31,968) | (33,428) | -4.4% | | Administrative expenses | (10,562) | (9,329) | 13.2% | | Impairment loss on trade receivables | (594) | (13) | 4469.2% | | Operating profit | 17,630 | 81,220 | -78.3% | | Finance costs | (7,276) | (10,185) | -28.6% | | Profit before tax | 10,354 | 71,035 | -85.4% | | Income tax | 213 | (8,981) | -102.4% | | Profit for the period from continuing operations | 10,567 | 62,054 | -83.0% | [Discontinued Operations](index=4&type=section&id=%E5%B7%B2%E7%B5%82%E6%AD%A2%E7%B6%93%E7%87%9F%E6%A5%AD%E5%8B%99) Discontinued operations recorded a loss of **RMB 194 thousand** for the six months ended June 30, 2025, compared to a profit in the prior year Profit/(Loss) for the Period from Discontinued Operations (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit/(loss) for the period from discontinued operations, net of tax | (194) | 174 | [Earnings Per Share](index=4&type=section&id=%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) Basic and diluted earnings per share significantly decreased to **1.71 RMB cents** for the six months ended June 30, 2025, from **10.26 RMB cents** in the prior year Earnings Per Share (For the six months ended June 30) | Indicator | 2025 (RMB cents) | 2024 (RMB cents) | | :--- | :--- | :--- | | Basic and diluted earnings per share | 1.71 | 10.26 | | Basic and diluted earnings per share from continuing operations | 1.74 | 10.24 | [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=5&type=section&id=%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E5%85%A5%E8%A1%A8) This section details the company's profit for the period and other comprehensive income, including foreign exchange differences, and their attribution to equity holders [Profit for the Period and Other Comprehensive Income](index=5&type=section&id=%E6%9C%9F%E5%85%A7%E6%BA%A2%E5%88%A9%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E5%85%A5) For the six months ended June 30, 2025, profit for the period and total comprehensive income both significantly decreased, mainly due to lower profit and a foreign exchange loss Profit for the Period and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit for the period | 10,373 | 62,228 | | Exchange differences on translation of the Group's presentation currency | (356) | 82 | | Total comprehensive income for the period | 10,017 | 62,310 | [Attributable to Equity Holders of the Company](index=5&type=section&id=%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%AC%8A%E7%9B%8A%E8%82%A1%E6%9D%B1%E6%87%89%E4%BD%B5) Total comprehensive income attributable to equity holders decreased significantly from **RMB 62,310 thousand** in 2024 to **RMB 10,017 thousand** in 2025 Total Comprehensive Income Attributable to Equity Holders of the Company (For the six months ended June 30) | Source | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | From continuing operations | 10,320 | 62,115 | | From discontinued operations | (303) | 195 | | Total comprehensive income for the period | 10,017 | 62,310 | [Consolidated Statement of Financial Position](index=6&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) This section outlines the company's assets, liabilities, and equity as of June 30, 2025, and December 31, 2024 [Non-current Assets](index=6&type=section&id=%E9%9D%9E%E6%B5%81%E5%8B%95%E8%B3%87%E7%94%A2) As of June 30, 2025, total non-current assets slightly decreased, primarily due to a reduction in property, plant, and equipment Non-current Assets (As of June 30, 2025) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Property, plant and equipment | 327,172 | 334,187 | | Loans to related parties | 22,475 | 21,925 | | **Total non-current assets** | **349,647** | **356,112** | [Current Assets](index=6&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E7%94%A2) As of June 30, 2025, total current assets slightly increased, driven by growth in inventories and trade and bills receivables, despite a decrease in bank balances and cash Current Assets (As of June 30, 2025) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Inventories | 522,712 | 433,554 | | Trade and bills receivables | 494,409 | 469,839 | | Prepayments, deposits and other receivables | 175,879 | 198,545 | | Bank balances and cash | 177,165 | 239,102 | | **Total current assets** | **1,370,165** | **1,341,040** | [Current Liabilities](index=6&type=section&id=%E6%B5%81%E5%8B%95%E8%B2%A0%E5%82%B5) As of June 30, 2025, total current liabilities increased, mainly due to a significant rise in bank borrowings Current Liabilities (As of June 30, 2025) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade and bills payables | 307,507 | 357,820 | | Accruals and other payables | 38,069 | 40,492 | | Bank borrowings | 399,245 | 276,500 | | Lease liabilities | 1,349 | 1,690 | | Current tax | 27,628 | 31,512 | | **Total current liabilities** | **773,798** | **708,014** | [Non-current Liabilities](index=6&type=section&id=%E9%9D%9E%E6%B5%81%E5%8B%95%E8%B2%A0%E5%82%B5) As of June 30, 2025, total non-current liabilities significantly decreased, primarily due to a reduction in bank borrowings Non-current Liabilities (As of June 30, 2025) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Bank borrowings | 20,000 | 72,600 | | Lease liabilities | 27,530 | 27,631 | | Other non-current liabilities | 3,326 | 3,484 | | Deferred tax liabilities | 10,082 | 10,364 | | **Total non-current liabilities** | **60,938** | **114,079** | [Capital and Reserves](index=6&type=section&id=%E8%B3%87%E6%9C%AC%E5%8F%8A%E5%84%B2%E5%82%99) As of June 30, 2025, total equity attributable to equity holders slightly increased, mainly driven by growth in retained profits Capital and Reserves (As of June 30, 2025) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Share capital | 534 | 534 | | Reserves | 884,542 | 874,525 | | **Total equity attributable to equity holders of the Company** | **885,076** | **875,059** | [Consolidated Statement of Changes in Equity](index=7&type=section&id=%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) This section details the changes in the company's equity attributable to equity holders for the six months ended June 30, 2025 [Changes in Equity](index=7&type=section&id=%E6%96%BC2024%E5%B9%B41%E6%9C%881%E6%97%A5%E7%9A%84%E7%B5%90%E9%A4%98) Total equity attributable to equity holders increased from **RMB 875,059 thousand** as of December 31, 2024, to **RMB 885,076 thousand** as of June 30, 2025, primarily due to profit for the period Consolidated Statement of Changes in Equity (For the six months ended June 30) | Indicator | Share Capital (RMB thousand) | Share Premium (RMB thousand) | Other Reserves (RMB thousand) | Capital Reserve (RMB thousand) | Statutory Reserve (RMB thousand) | Exchange Reserve (RMB thousand) | Retained Profits (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Balance at January 1, 2024 | 534 | 142,753 | 180,000 | 107,021 | 40,365 | 233 | 311,378 | 782,284 | | Changes in equity for the six months ended June 30, 2024: | | | | | | | | | | Profit for the period | – | – | – | – | – | – | 62,228 | 62,228 | | Other comprehensive income for the period | – | – | – | – | – | 82 | – | 82 | | Total comprehensive income | – | – | – | – | – | 82 | 62,228 | 62,310 | | Balance at June 30, 2024 and July 1, 2024 | 534 | 142,753 | 180,000 | 107,021 | 40,365 | 315 | 373,606 | 844,594 | | Changes in equity for the six months ended December 31, 2024: | | | | | | | | | | Profit for the period | – | – | – | – | – | – | 30,475 | 30,475 | | Other comprehensive income for the period | – | – | – | – | – | (10) | – | (10) | | Total comprehensive income | – | – | – | – | – | (10) | 30,475 | 30,465 | | Transfer to reserves | – | – | – | – | 9,956 | – | (9,956) | – | | Balance at December 31, 2024 | 534 | 142,753 | 180,000 | 107,021 | 50,321 | 305 | 394,125 | 875,059 | | Balance at January 1, 2025 | 534 | 142,753 | 180,000 | 107,021 | 50,321 | 305 | 394,125 | 875,059 | | Changes in equity for the six months ended June 30, 2025: | | | | | | | | | | Profit for the period | – | – | – | – | – | – | 10,373 | 10,373 | | Other comprehensive income for the period | – | – | – | – | – | (356) | – | (356) | | Total comprehensive income | – | – | – | – | – | (356) | 10,373 | 10,017 | | Balance at June 30, 2025 | 534 | 142,753 | 180,000 | 107,021 | 50,321 | (51) | 404,498 | 885,076 | [Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) This section summarizes the cash flows from operating, investing, and financing activities, and the overall change in cash and cash equivalents [Operating Activities](index=8&type=section&id=%E7%B6%93%E7%87%9F%E6%B4%BB%E5%8B%95) For the six months ended June 30, 2025, cash flow from operating activities shifted from a net inflow to a net outflow, reflecting a deterioration in operating performance Cash Flows from Operating Activities (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net cash (used in)/generated from operations | (104,911) | 46,913 | | Income tax paid | (3,982) | (8,465) | | Net cash (used in)/generated from operating activities | (108,893) | 38,448 | [Investing Activities](index=8&type=section&id=%E6%8A%95%E8%B3%87%E6%B4%BB%E5%8B%95) For the six months ended June 30, 2025, net cash outflow from investing activities increased, mainly due to higher payments for property, plant, and equipment Cash Flows from Investing Activities (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Payments for purchase of property, plant and equipment | (8,950) | (5,951) | | Proceeds from/(payments for) disposal of property, plant and equipment | 70 | (12) | | Disposal of discontinued operations, net of cash disposed of | 337 | – | | Interest received | 755 | 469 | | Net cash used in investing activities | (7,788) | (5,494) | [Financing Activities](index=8&type=section&id=%E8%9E%8D%E8%B3%87%E6%B4%BB%E5%8B%95) For the six months ended June 30, 2025, cash flow from financing activities shifted from a net outflow to a net inflow, primarily driven by increased proceeds from new bank loans Cash Flows from Financing Activities (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Proceeds from new bank loans | 228,455 | 262,648 | | Repayment of bank loans | (158,310) | (263,528) | | Capital element of lease rentals paid | (442) | (423) | | Interest element of lease rentals paid | (715) | (735) | | Net decrease in amounts due to related parties | (55) | (217) | | Interest paid | (6,561) | (9,452) | | Net cash generated from/(used in) financing activities | 62,372 | (11,707) | [Changes in Cash and Cash Equivalents](index=8&type=section&id=%E7%8F%BE%E9%87%91%E5%8F%8A%E7%8F%BE%E9%87%91%E7%AD%89%E5%83%B9%E7%89%A9%EF%BC%88%E6%B8%9B%E5%B0%91%EF%BC%89%E2%88%95%E5%A2%9E%E5%8A%A0%E6%B7%A8%E9%A1%8D) For the six months ended June 30, 2025, net cash and cash equivalents decreased by **RMB 54,309 thousand**, with an ending balance of **RMB 87,897 thousand** Changes in Cash and Cash Equivalents (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net (decrease)/increase in cash and cash equivalents | (54,309) | 21,247 | | Cash and cash equivalents at January 1 | 142,386 | 79,430 | | Effect of foreign exchange rate changes | (180) | 181 | | Cash and cash equivalents at June 30 | 87,897 | 100,858 | [Notes to the Unaudited Interim Financial Report](index=9&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E9%99%84%E8%A8%BB) This section provides detailed notes and explanations supporting the unaudited interim financial statements [1 Company Information](index=9&type=section&id=1%20%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) Kangli International Holdings Limited was incorporated in the Cayman Islands on December 21, 2017, listed on the HKEX Main Board on November 19, 2018, and primarily manufactures and sells steel products and provides property management services - The Company was incorporated in the Cayman Islands as an exempted company with limited liability on December 21, 2017[12](index=12&type=chunk) - The Company's shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on November 19, 2018[12](index=12&type=chunk) - The Group is principally engaged in the manufacture and sale of cold rolled steel coils, non-color coated galvanized steel products, and color coated galvanized steel products, and the provision of property management services[12](index=12&type=chunk) [2 Basis of Preparation](index=9&type=section&id=2%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) This interim financial report is prepared in accordance with HKEX Listing Rules and IAS 34, using consistent accounting policies with the 2024 annual financial statements, with expected changes in 2025 - This interim financial report has been prepared in accordance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and International Accounting Standard 34 "Interim Financial Reporting"[13](index=13&type=chunk) - The basis of preparation is consistent with the accounting policies adopted in the 2024 annual financial statements, except for changes in accounting policies expected to be reflected in the 2025 annual financial statements[13](index=13&type=chunk) [3 Changes in Accounting Policies](index=9&type=section&id=3%20%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E8%AE%8A%E5%8B%95) The Group applied amendments to IAS 21, "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability," which had no material impact due to the absence of relevant foreign currency transactions - The Group has applied the amendments to IAS 21 "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability"[14](index=14&type=chunk) - As the Group has not entered into foreign currency transactions where one currency is not exchangeable into another, the amendments have no material impact on this interim report[14](index=14&type=chunk) - The Group has not early adopted any new standards or interpretations that are not yet effective for the current accounting period[15](index=15&type=chunk) [4 Discontinued Operations](index=10&type=section&id=4%20%E5%B7%B2%E7%B5%82%E6%AD%A2%E7%B6%93%E7%87%9F%E6%A5%AD%E5%8B%99) The Group disposed of its Philippine property management subsidiary in Q1 2025 to refocus on core steel products, with limited impact on total revenue - The Group disposed of its wholly-owned subsidiary engaged in property management services in the Philippines for a cash consideration of **RMB 1,638 thousand** in the first quarter of 2025[16](index=16&type=chunk) - Management decided to take this step to strategically focus on the Group's core business of manufacturing and selling steel products[16](index=16&type=chunk) - The revenue from this business segment accounted for a very limited proportion of the Group's total revenue and will not have a significant impact on the Group's business[67](index=67&type=chunk) [4(a) Results of Discontinued Operations](index=10&type=section&id=4(a)%20%E5%B7%B2%E7%B5%82%E6%AD%A2%E7%B6%93%E7%87%9F%E6%A5%AD%E5%8B%99%E7%9A%84%E6%A5%AD%E7%B8%BE) For the period ended February 28, 2025, discontinued operations recorded a loss of **RMB 194 thousand**, compared to a profit of **RMB 174 thousand** in the prior year Results of Discontinued Operations (For the period ended February 28, 2025 and June 30, 2024) | Indicator | January 1 to February 28, 2025 (RMB thousand) | For the six months ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 1,029 | 3,169 | | Results from operating activities | 143 | 218 | | Net loss on disposal of subsidiary | (308) | – | | Profit/(loss) for the period from discontinued operations, net of tax | (194) | 174 | | (Loss)/earnings per share (RMB cents) | (0.03) | 0.02 | [4(b) Cash Flows (Used in)/From Discontinued Operations](index=10&type=section&id=4(b)%20%E5%B7%B2%E7%B5%82%E6%AD%A2%E7%B6%93%E7%87%9F%E6%A5%AD%E5%8B%99%EF%BC%88%E6%89%80%E7%94%A8%EF%BC%89%E2%88%95%E6%89%80%E5%BE%97%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F) For the period ended February 28, 2025, discontinued operations generated a net cash inflow of **RMB 199 thousand**, primarily from investing activities Cash Flows from Discontinued Operations (For the period ended February 28, 2025 and June 30, 2024) | Indicator | January 1 to February 28, 2025 (RMB thousand) | For the six months ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Net cash (used in)/generated from operating activities | (138) | 142 | | Net cash generated from/(used in) investing activities | 337 | (4) | | Net cash used in financing activities | – | (59) | | Net cash inflow for the period | 199 | 79 | [4(c) Effect of Disposal on the Group's Financial Position](index=11&type=section&id=4(c)%20%E5%87%BA%E5%94%AE%E4%BA%8B%E9%A0%85%E5%B0%8D%E6%9C%AC%E9%9B%86%E5%9C%98%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E4%B9%8B%E5%BD%B1%E9%9F%BF) The disposal of discontinued operations generated a net cash inflow of **RMB 337 thousand**, with no significant impact on the Group's financial position Effect of Disposal on the Group's Financial Position (As of February 28, 2025) | Indicator | Amount (RMB thousand) | | :--- | :--- | | Net assets | 1,946 | | Consideration received, satisfied by cash | 1,638 | | Cash and cash equivalents disposed of | (1,301) | | Net cash inflow | 337 | [5 Revenue and Segment Reporting](index=11&type=section&id=5%20%E6%94%B6%E7%9B%8A%E5%8F%8A%E5%88%86%E9%83%A8%E5%A0%B1%E5%91%8A) The Group primarily manufactures and sells steel products, having discontinued property management services; continuing operations revenue decreased by **27.0%** for the six months ended June 30, 2025, mainly due to lower sales of non-color coated and color coated galvanized steel products - The Group is principally engaged in the manufacture and sale of cold rolled steel coils, non-color coated galvanized steel products, and color coated galvanized steel products[20](index=20&type=chunk) - Total revenue from continuing operations was **RMB 731,393 thousand**, representing a decrease of **27.0%** compared to **RMB 1,002,304 thousand** in the corresponding period of 2024[21](index=21&type=chunk) [5(a) Revenue](index=11&type=section&id=5(a)%20%E6%94%B6%E7%9B%8A) Revenue from continuing operations primarily derived from steel product sales, with significant declines in non-color coated and color coated galvanized steel products Revenue from Contracts with Customers by Major Products and Services (For the six months ended June 30) | Product/Service | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Sale of cold rolled steel coils | 81,453 | 76,329 | | Sale of non-color coated galvanized steel products | 368,310 | 525,839 | | Sale of color coated galvanized steel products | 281,630 | 400,136 | | **Total revenue from continuing operations** | **731,393** | **1,002,304** | | Provision of property management services (discontinued operations) | 1,029 | 3,169 | | **Total** | **732,422** | **1,005,473** | [5(b) Segment Reporting](index=12&type=section&id=5(b)%20%E5%88%86%E9%83%A8%E5%A0%B1%E5%91%8A) The Group reports across four segments: cold rolled steel coils, non-color coated galvanized steel products, color coated galvanized steel products, and property management services; continuing operations gross profit decreased from **RMB 120,369 thousand** in 2024 to **RMB 58,459 thousand** in 2025 - The Group's reportable segments include cold rolled steel coils, non-color coated galvanized steel products, color coated galvanized steel products, and property management services[24](index=24&type=chunk) Reportable Segment Gross Profit (For the six months ended June 30) | Segment | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Cold rolled steel coils | 5,015 | 6,174 | | Non-color coated galvanized steel products | 29,037 | 64,597 | | Color coated galvanized steel products | 24,407 | 49,598 | | **Subtotal gross profit from continuing operations** | **58,459** | **120,369** | | Property management services (discontinued operations) | 389 | 842 | | **Total gross profit** | **58,848** | **121,211** | Reconciliation of Reportable Segment Profit or Loss (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Reportable segment gross profit | 58,848 | 121,211 | | Other income | 2,299 | 3,655 | | Selling expenses | (31,968) | (33,428) | | Administrative expenses | (10,812) | (9,985) | | Impairment loss on trade receivables | (594) | (13) | | Finance costs | (7,276) | (10,187) | | Elimination of discontinued operations | (143) | (218) | | Consolidated profit before tax from continuing operations | 10,354 | 71,035 | [5(c) Geographical Information](index=14&type=section&id=5(c)%20%E5%9C%B0%E7%90%86%E8%B3%87%E6%96%99) The vast majority of the Group's revenue is generated from the China market, but revenue from Thailand and South Korea significantly decreased Geographical Distribution of Revenue from External Customers (For the six months ended June 30) | Region | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | The People's Republic of China ("China") | 674,483 | 897,971 | | Thailand | 38,093 | 67,729 | | Indonesia | 11,238 | 10,711 | | South Korea | 2,102 | 21,782 | | Other countries | 5,477 | 4,111 | | **Total revenue from external customers from continuing operations** | **731,393** | **1,002,304** | | Philippines (discontinued operations) | 1,029 | 3,169 | | **Total** | **732,422** | **1,005,473** | - The vast majority of the Group's non-current assets are located in China[28](index=28&type=chunk) [6 Other Income](index=15&type=section&id=6%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) For the six months ended June 30, 2025, other income from continuing operations was **RMB 2,295 thousand**, a decrease from **RMB 3,621 thousand** in the prior year, mainly due to lower net exchange gains Other Income (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest income | 1,301 | 1,018 | | Net exchange gains | 501 | 1,899 | | Government grants | 388 | 529 | | Net loss on disposal of property, plant and equipment | – | (17) | | Others | 105 | 192 | | **Total** | **2,295** | **3,621** | [7 Profit Before Tax](index=15&type=section&id=7%20%E9%99%A4%E7%A8%85%E5%89%8D%E6%BA%A2%E5%88%A9) Profit before tax is influenced by finance costs, staff costs, and depreciation expenses; for the six months ended June 30, 2025, finance costs decreased, while staff costs and depreciation remained relatively stable [7(a) Finance Costs](index=15&type=section&id=7(a)%20%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) For the six months ended June 30, 2025, finance costs from continuing operations decreased by **28.6%** to **RMB 7,276 thousand**, primarily due to lower interest expenses on discounted bills Finance Costs (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest on bank borrowings | 6,561 | 9,452 | | Interest on lease liabilities | 715 | 733 | | **Total** | **7,276** | **10,185** | - Finance costs decreased by approximately **28.6%**, mainly due to lower interest expenses on discounted bills during the period resulting from falling interest rates[75](index=75&type=chunk) [7(b) Staff Costs](index=15&type=section&id=7(b)%20%E5%83%B1%E5%93%A1%E6%88%90%E6%9C%AC) For the six months ended June 30, 2025, staff costs from continuing operations increased to **RMB 33,974 thousand** from **RMB 30,574 thousand** in the prior year Staff Costs (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Salaries, wages and other benefits | 31,269 | 28,282 | | Contributions to defined contribution retirement plans | 2,705 | 2,292 | | **Total** | **33,974** | **30,574** | [7(c) Other Items](index=16&type=section&id=7(c)%20%E5%85%B6%E4%BB%96%E9%A0%85%E7%9B%AE) For the six months ended June 30, 2025, depreciation expense from continuing operations was **RMB 12,227 thousand**, and cost of inventories was **RMB 672,934 thousand** Other Items (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Depreciation expense – owned property, plant and equipment | 10,742 | 12,880 | | Depreciation expense – right-of-use assets | 1,485 | 1,487 | | **Total depreciation expense** | **12,227** | **14,367** | | Cost of inventories | 672,934 | 881,935 | [8 Income Tax](index=16&type=section&id=8%20%E6%89%80%E5%BE%97%E7%A8%85) For the six months ended June 30, 2025, income tax from continuing operations shifted from a tax expense of **RMB 8,981 thousand** to a tax credit of **RMB 213 thousand**, mainly due to reduced profit before tax and deferred tax temporary differences reversal Income Tax (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | PRC Enterprise Income Tax – current period provision | – | 6,392 | | PRC Enterprise Income Tax – under-provision in prior years | 69 | – | | Hong Kong Profits Tax – current period provision | – | 283 | | Deferred tax | (282) | 2,306 | | **Total** | **(213)** | **8,981** | - The Company and its subsidiaries incorporated in the Cayman Islands or British Virgin Islands are not subject to income tax[33](index=33&type=chunk) - Hong Kong subsidiaries are subject to Hong Kong Profits Tax at a rate of **16.5%**, with certain qualifying corporations enjoying a two-tiered tax rate (first **HK$2 million** taxed at **8.25%**)[34](index=34&type=chunk) - PRC subsidiaries are subject to PRC Enterprise Income Tax at a rate of **25%**, with "High and New Technology Enterprises" qualifying for a preferential tax rate of **15%**[40](index=40&type=chunk) - Qualifying research and development costs are eligible for an additional **100%** deduction when calculating income tax[40](index=40&type=chunk) [9 Earnings Per Share](index=17&type=section&id=9%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) For the six months ended June 30, 2025, basic earnings per share significantly decreased to **1.71 RMB cents** from **10.26 RMB cents** in the prior year, with no difference between basic and diluted EPS - Basic earnings per share is calculated based on the profit/(loss) attributable to ordinary equity holders of the Company for the interim period and the weighted average number of ordinary shares in issue of **606,252,000** shares[35](index=35&type=chunk) Profit/(Loss) Attributable to Ordinary Equity Holders (For the six months ended June 30) | Item | 2025 Continuing Operations (RMB thousand) | 2025 Discontinued Operations (RMB thousand) | 2025 Total (RMB thousand) | 2024 Continuing Operations (RMB thousand) | 2024 Discontinued Operations (RMB thousand) | 2024 Total (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Profit/(loss) attributable to ordinary equity holders | 10,567 | (194) | 10,373 | 62,054 | 174 | 62,228 | - The Company had no potentially dilutive shares in issue for the six months ended June 30, 2025 and 2024, hence there is no difference between basic and diluted earnings per share[37](index=37&type=chunk) [10 Property, Plant and Equipment](index=17&type=section&id=10%20%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99) For the six months ended June 30, 2025, the Group recognized no increase in right-of-use assets, acquired plant and machinery for **RMB 4,032 thousand**, and disposed of certain assets [10(a) Right-of-use Assets](index=17&type=section&id=10(a)%20%E4%BD%BF%E7%94%A8%E6%AC%8A%E8%B3%87%E7%94%A2) For the six months ended June 30, 2025, no increase in right-of-use assets was recognized by the Group - No increase in right-of-use assets was recognized for the six months ended June 30, 2025 (for the six months ended June 30, 2024: **RMB 115 thousand**)[38](index=38&type=chunk) [10(b) Acquisition and Disposal of Self-owned Assets](index=17&type=section&id=10(b)%20%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E8%87%AA%E7%BD%AE%E8%B3%87%E7%94%A2) For the six months ended June 30, 2025, the Group acquired plant and machinery at a cost of **RMB 4,032 thousand** and disposed of assets with a carrying amount of **RMB 38 thousand** as part of discontinued operations, and plant and machinery with a net book value of **RMB 70 thousand** - For the six months ended June 30, 2025, the Group acquired plant and machinery at a cost of **RMB 4,032 thousand**[39](index=39&type=chunk) - Assets with a carrying amount of **RMB 38 thousand** were disposed of as part of discontinued operations[39](index=39&type=chunk) - Plant and machinery with a net book value of **RMB 70 thousand** were disposed of during the six months ended June 30, 2025[39](index=39&type=chunk) [11 Loans to Related Parties](index=18&type=section&id=11%20%E9%97%9C%E8%81%AF%E6%96%B9%E8%B2%B8%E6%AC%BE) Jiangnan Precision, a Group subsidiary, provided a three-year loan of **RMB 20,000,000** at 5.5% annual interest to related party Jiangnan Ferroalloy, securing an option to acquire property - Jiangnan Precision, a subsidiary of the Group, provided a three-year loan with a principal amount of **RMB 20,000,000** to Jiangnan Ferroalloy, a related party, bearing interest at an annual rate of **5.5%**[41](index=41&type=chunk) - Jiangnan Precision obtained an option to acquire property to be constructed in Changzhou Economic Development Zone at zero consideration, aiming to enhance office capacity[41](index=41&type=chunk) [12 Inventories](index=18&type=section&id=12%20%E5%AD%98%E8%B2%A8) As of June 30, 2025, total inventories amounted to **RMB 522,712 thousand**, an increase from December 31, 2024, primarily due to growth in raw materials and consumables [12(a) Inventories in the Consolidated Statement of Financial Position comprise](index=18&type=section&id=12(a)%20%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8%E5%85%A7%E7%9A%84%E5%AD%98%E8%B2%A8%E5%8C%85%E6%8B%AC) As of June 30, 2025, inventories primarily consisted of raw materials and consumables and finished goods Inventories in the Consolidated Statement of Financial Position (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Raw materials and consumables | 209,233 | 123,506 | | Finished goods | 313,479 | 310,048 | | **Total** | **522,712** | **433,554** | [12(b) An analysis of the amount of inventories recognized as an expense and included in the consolidated statement of profit or loss is as follows](index=18&type=section&id=12(b)%20%E7%A2%BA%E8%AA%8D%E7%82%BA%E9%96%8B%E6%94%AF%E4%B8%A6%E8%A8%88%E5%85%A5%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8%E7%9A%84%E5%AD%98%E8%B2%A8%E9%87%91%E9%A1%8D%E5%88%86%E6%9E%90%E5%A6%82%E4%B8%8B) For the six months ended June 30, 2025, the carrying amount of inventories sold and recognized as an expense in the consolidated statement of profit or loss was **RMB 672,934 thousand** Amount of Inventories Recognized as Expense (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Carrying amount of inventories sold | 672,934 | 881,935 | [13 Trade and Bills Receivables](index=18&type=section&id=13%20%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E5%8F%8A%E6%87%89%E6%94%B6%E7%A5%A8%E6%93%9A) As of June 30, 2025, total trade and bills receivables amounted to **RMB 494,409 thousand**, an increase from December 31, 2024, mainly due to growth in bills receivables Trade and Bills Receivables (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables, net of loss allowance | 180,359 | 196,169 | | Bills receivables | 314,050 | 273,670 | | **Financial assets measured at amortized cost** | **494,409** | **469,839** | - All trade and bills receivables (net of loss allowance) are expected to be recovered within one year[45](index=45&type=chunk) [13(a) Ageing Analysis](index=19&type=section&id=13(a)%20%E8%B3%AC%E9%BD%A1%E5%88%86%E6%9E%90) As of June 30, 2025, trade receivables were primarily due within one month, with a smaller proportion overdue by more than six months Ageing Analysis of Trade Receivables (As of June 30, 2025) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 month | 105,550 | 138,502 | | 1 to 3 months | 72,745 | 52,993 | | Over 6 months | 2,060 | 2,878 | | 6 to 12 months | 4 | 1,796 | | **Total** | **180,359** | **196,169** | [13(b) As at 30 June 2025, the Group discounted certain bank acceptance bills received from customers with banks](index=19&type=section&id=13(b)%20%E6%96%BC2025%E5%B9%B46%E6%9C%8830%E6%97%A5%EF%BC%8C%E6%9C%AC%E9%9B%86%E5%9C%98%E6%96%BC%E9%8A%80%E8%A1%8C%E8%B2%BC%E7%8F%BE%E8%8B%A5%E5%B9%B2%E6%94%B6%E5%8F%96%E8%87%AA%E5%AE%A2%E6%88%B6%E7%9A%84%E9%8A%80%E8%A1%8C%E6%89%BF%E5%85%8C%E7%A5%A8%E6%93%9A) The Group's maximum loss and undiscounted cash outflow from discounted or endorsed bank acceptance bills was **RMB 124,643 thousand** as of June 30, 2025, a significant decrease from December 31, 2024 - The Group has fully derecognized discounted or endorsed bank acceptance bills as substantially all the risks and rewards of ownership have been transferred[46](index=46&type=chunk) - As of June 30, 2025, the maximum loss and undiscounted cash outflow for the Group, should the issuing banks fail to settle the bills on maturity, was **RMB 124,643 thousand** (December 31, 2024: **RMB 309,322 thousand**)[46](index=46&type=chunk) [13(c) As at 30 June 2025, bills receivables included bank acceptance bills discounted with banks or endorsed to suppliers with recourse](index=19&type=section&id=13(c)%20%E6%96%BC2025%E5%B9%B46%E6%9C%8830%E6%97%A5%EF%BC%8C%E6%87%89%E6%94%B6%E7%A5%A8%E6%93%9A%E5%8C%85%E6%8B%AC%E5%90%91%E9%8A%80%E8%A1%8C%E8%B2%BC%E7%8F%BE%E6%88%96%E5%90%91%E4%BE%9B%E6%87%89%E5%95%86%E8%83%8C%E6%9B%B8%E4%B8%A6%E9%99%84%E6%9C%89%E8%BF%BD%E7%B4%A2%E6%AC%8A%E7%9A%84%E9%8A%80%E8%A1%8C%E6%89%BF%E5%85%8C%E7%A5%A8%E6%93%9A) As of June 30, 2025, bank acceptance bills discounted or endorsed with recourse and not derecognized amounted to **RMB 68,859 thousand**, as the Group retained credit risk - As of June 30, 2025, bills receivables included bank acceptance bills discounted with banks or endorsed to suppliers with recourse totaling **RMB 68,859 thousand** (December 31, 2024: **RMB 8,669 thousand**)[46](index=46&type=chunk) - These bills receivables were not derecognized because the Group still faces credit risk for these receivables[46](index=46&type=chunk) [13(d) As at 30 June 2025, trade receivables of RMB2,553,000](index=19&type=section&id=13(d)%20%E6%96%BC2025%E5%B9%B46%E6%9C%8830%E6%97%A5%EF%BC%8C%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E4%BA%BA%E6%B0%91%E5%B9%A32%2C553%2C000%E5%85%83) As of June 30, 2025, trade receivables of **RMB 2,553 thousand** discounted with banks were not derecognized, as the Group retained credit risk - As of June 30, 2025, trade receivables of **RMB 2,553 thousand** (December 31, 2024: **RMB 7,100 thousand**) were discounted with banks[46](index=46&type=chunk) - These trade receivables were not derecognized because the Group still faces credit risk for these receivables[46](index=46&type=chunk) [14 Prepayments, Deposits and Other Receivables](index=20&type=section&id=14%20%E9%A0%90%E4%BB%98%E6%AC%BE%E9%A0%85%E3%80%81%E6%8C%89%E9%87%91%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, total prepayments, deposits, and other receivables amounted to **RMB 175,879 thousand**, a decrease from December 31, 2024, mainly due to lower prepayments for raw materials Prepayments, Deposits and Other Receivables (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Payments for purchase of raw materials | 164,475 | 195,574 | | Payments for utilities and other expenses | 645 | 813 | | Deposits for forward steel contract transactions | 8,496 | – | | Other debtors | 2,263 | 2,158 | | **Financial assets measured at amortized cost** | **175,879** | **198,545** | [15 Bank Balances and Cash](index=20&type=section&id=15%20%E9%8A%80%E8%A1%8C%E5%AD%98%E6%AC%BE%E5%8F%8A%E7%8F%BE%E9%87%91) As of June 30, 2025, total bank balances and cash amounted to **RMB 177,165 thousand**, a decrease from December 31, 2024, including restricted deposits of **RMB 89,268 thousand** Bank Balances and Cash (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Bank balances | 177,125 | 238,996 | | Cash | 40 | 106 | | **Bank balances and cash in the consolidated statement of financial position** | **177,165** | **239,102** | | Less: Restricted deposits | (89,268) | (96,716) | | **Cash and cash equivalents in the condensed consolidated statement of cash flows** | **87,897** | **142,386** | - Restricted deposits refer to deposits placed with banks as collateral for bills issued and bank borrowings drawn by the Group[49](index=49&type=chunk) - The Group's operations in China are conducted in RMB, which is not a freely convertible currency, and the remittance of funds outside China is subject to foreign exchange controls[48](index=48&type=chunk) [16 Trade and Bills Payables](index=21&type=section&id=16%20%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85%E5%8F%8A%E6%87%89%E4%BB%98%E7%A5%A8%E6%93%9A) As of June 30, 2025, total trade and bills payables amounted to **RMB 307,507 thousand**, a decrease from December 31, 2024, primarily due to lower trade and bills payables Trade and Bills Payables (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade payables | 44,093 | 65,130 | | Bills payables | 233,082 | 262,082 | | **Financial liabilities measured at amortized cost** | **277,175** | **327,212** | | Contract liabilities: prepayments received from customers | 30,332 | 30,608 | | **Total** | **307,507** | **357,820** | Ageing Analysis of Trade and Bills Payables (As of June 30, 2025) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 3 months | 142,408 | 208,080 | | 3 to 6 months | 133,835 | 117,459 | | Over 6 months | 932 | 1,673 | | **Total** | **277,175** | **327,212** | [17 Accruals and Other Payables](index=21&type=section&id=17%20%E6%87%89%E8%A8%88%E9%96%8B%E6%94%AF%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, total accruals and other payables amounted to **RMB 38,069 thousand**, a slight decrease from December 31, 2024, but included new derivative financial liabilities from forward steel contracts Accruals and Other Payables (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Amounts payable for construction of property, plant and equipment | 25,251 | 28,935 | | Other tax payables | 4,681 | 5,775 | | Staff-related cost payables | 4,640 | 4,239 | | Amounts due to related parties | 31 | 86 | | Others | 1,251 | 1,457 | | **Financial liabilities measured at amortized cost** | **35,854** | **40,492** | | Derivative financial liabilities arising from forward steel contracts | 2,215 | – | | **Total** | **38,069** | **40,492** | [18 Bank Borrowings](index=22&type=section&id=18%20%E9%8A%80%E8%A1%8C%E8%B2%B8%E6%AC%BE) As of June 30, 2025, the Group's total bank borrowings amounted to **RMB 419,245 thousand**, an increase from December 31, 2024, with a significant rise in short-term borrowings and a decrease in long-term borrowings - As of June 30, 2025, the Group had bank borrowings of approximately **RMB 419,245 thousand**, of which approximately **RMB 140,800 thousand** were secured by the Group's property, plant and equipment or restricted bank deposits, and approximately **RMB 65,445 thousand** were secured by trade and bills receivables[82](index=82&type=chunk) [18(a) The Group's short-term bank borrowings are analysed as follows](index=22&type=section&id=18(a)%20%E6%9C%AC%E9%9B%86%E5%9C%98%E7%9A%84%E7%9F%AD%E6%9C%9F%E9%8A%80%E8%A1%8C%E8%B2%B8%E6%AC%BE%E5%88%86%E6%9E%90%E5%A6%82%E4%B8%8B) As of June 30, 2025, total short-term bank borrowings significantly increased to **RMB 399,245 thousand** from **RMB 276,500 thousand** as of December 31, 2024 Short-term Bank Borrowings Analysis (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Secured by the Group's property, plant and equipment or restricted bank deposits | 64,500 | 10,000 | | Secured by the Group's trade and bills receivables | 65,445 | 7,100 | | Guaranteed by third parties | 45,000 | 45,000 | | Unsecured and unguaranteed | 168,000 | 130,000 | | **Subtotal bank borrowings** | **342,945** | **192,100** | | Add: Current portion of long-term bank borrowings | 56,300 | 84,400 | | **Total** | **399,245** | **276,500** | [18(b) The Group's long-term bank borrowings are analysed as follows](index=22&type=section&id=18(b)%20%E6%9C%AC%E9%9B%86%E5%9C%98%E7%9A%84%E9%95%B7%E6%9C%9F%E9%8A%80%E8%A1%8C%E8%B2%B8%E6%AC%BE%E5%88%86%E6%9E%90%E5%A6%82%E4%B8%8B) As of June 30, 2025, total long-term bank borrowings significantly decreased to **RMB 76,300 thousand** from **RMB 157,000 thousand** as of December 31, 2024 Long-term Bank Borrowings Analysis (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Secured by the Group's property, plant and equipment or restricted bank deposits | 76,300 | 138,000 | | Unsecured and unguaranteed | – | 19,000 | | **Subtotal bank borrowings** | **76,300** | **157,000** | | Less: Current portion of long-term bank borrowings | (56,300) | (84,400) | | **Total** | **20,000** | **72,600** | Long-term Bank Borrowings Repayment Schedule (As of June 30, 2025) | Term | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 year | 56,300 | 84,400 | | After 1 year but within 2 years | 20,000 | 72,600 | | **Total** | **76,300** | **157,000** | [18(c) The Group's assets pledged for bank borrowings are analysed as follows](index=23&type=section&id=18(c)%20%E7%82%BA%E6%9C%AC%E9%9B%86%E5%9C%98%E9%8A%80%E8%A1%8C%E8%B2%B8%E6%AC%BE%E4%BD%9C%E8%B3%AA%E6%8A%BC%E7%9A%84%E6%9C%AC%E9%9B%86%E5%9C%98%E8%B3%87%E7%94%A2%E5%88%86%E6%9E%90%E5%A6%82%E4%B8%8B) As of June 30, 2025, total assets pledged for the Group's bank borrowings amounted to **RMB 194,014 thousand**, an increase from December 31, 2024 The Group's Assets Pledged for Bank Borrowings (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Pledged property, plant and equipment | 98,569 | 100,665 | | Pledged trade and bills receivables | 65,445 | 7,100 | | Pledged restricted bank deposits | 30,000 | 30,000 | | **Total** | **194,014** | **137,765** | [19 Deferred Tax Assets and Liabilities](index=23&type=section&id=19%20%E9%81%9E%E5%BB%B6%E7%A8%85%E9%A0%85%E8%B3%87%E7%94%A2%E5%8F%8A%E8%B2%A0%E5%82%B5) As of June 30, 2025, net deferred tax liabilities amounted to **RMB 10,082 thousand**, a slight decrease from December 31, 2024, mainly influenced by amounts credited to/charged from the consolidated statement of profit or loss Components and Movements of Deferred Tax Assets and Liabilities (As of June 30, 2025) | Item | Unused Tax Losses (RMB thousand) | Credit Loss Allowance (RMB thousand) | Lease Liabilities (RMB thousand) | Remeasurement of Derivative Financial Instruments (RMB thousand) | Government Grants and Depreciation Related to Assets (RMB thousand) | Accelerated Tax Depreciation Allowance (RMB thousand) | Withholding Tax on Right-of-use Assets (RMB thousand) | Net (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | At January 1, 2024 | 2,082 | 290 | 4,141 | (18) | 964 | (8,315) | (3,239) | (4,095) | | (Charged to)/credited to consolidated statement of profit or loss | (2,082) | (106) | 16 | 18 | (394) | (867) | 146 | (6,269) | | At December 31, 2024 | – | 184 | 4,157 | – | 570 | (9,182) | (3,093) | (10,364) | | Credited to/(charged from) consolidated statement of profit or loss (Note 8) | 268 | 90 | (17) | 332 | (24) | (460) | 93 | 282 | | At June 30, 2025 | 268 | 274 | 4,140 | 332 | 546 | (9,642) | (3,000) | (10,082) | [20 Dividends](index=24&type=section&id=20%20%E8%82%A1%E6%81%AF) The Board of Directors does not recommend an interim dividend for the six months ended June 30, 2025, and no final dividend was declared for the year ended December 31, 2024 [20(i) Dividends payable to equity holders of the Company attributable to the interim period](index=24&type=section&id=20(i)%20%E4%B8%AD%E6%9C%9F%E6%9C%9F%E9%96%93%E6%87%89%E4%BB%98%E4%BA%88%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%AC%8A%E7%9B%8A%E8%82%A1%E6%9D%B1%E7%9A%84%E8%82%A1%E6%81%AF) The Board of Directors does not recommend an interim dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (for the six months ended June 30, 2024: **RMB nil**)[57](index=57&type=chunk) [20(ii) Dividends payable to equity holders of the Company attributable to the previous financial year approved during the interim period](index=24&type=section&id=20(ii)%20%E6%87%89%E4%BB%98%E4%BA%88%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%AC%8A%E7%9B%8A%E8%82%A1%E6%9D%B1%E6%96%BC%E4%B8%AD%E6%9C%9F%E6%9C%9F%E9%96%93%E6%89%B9%E5%87%86%E7%9A%84%E4%B8%8A%E4%B8%80%E8%B2%A1%E6%94%BF%E5%B9%B4%E5%BA%A6%E7%9A%84%E8%82%A1%E6%81%AF) The Board of Directors did not declare a final dividend for the year ended December 31, 2024 - The Board of Directors did not declare a final dividend for the year ended December 31, 2024 (2023: **RMB nil**)[58](index=58&type=chunk) [21 Fair Value Measurement of Financial Instruments](index=24&type=section&id=21%20%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E7%9A%84%E5%85%AC%E5%B9%B3%E5%80%BC%E8%A8%88%E9%87%8F) The Group presents fair values of financial instruments using a three-level fair value hierarchy in accordance with IFRS 13; as of June 30, 2025, derivative financial liabilities from forward steel contracts are measured using Level 1 valuation - The fair value hierarchy categorizes fair value measurements into three levels based on the observability and significance of the inputs used in the valuation techniques[59](index=59&type=chunk) - Level 1 valuations use unadjusted quoted prices in active markets for identical assets or liabilities[61](index=61&type=chunk) - Level 2 valuations use observable inputs other than quoted prices included within Level 1, and no significant unobservable inputs are used[61](index=61&type=chunk) - Level 3 valuations use significant unobservable inputs[61](index=61&type=chunk) [21(a) Financial assets and liabilities measured at fair value](index=24&type=section&id=21(a)%20%E4%BB%A5%E5%85%AC%E5%B9%B3%E5%80%BC%E8%A8%88%E9%87%8F%E7%9A%84%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2%E5%8F%8A%E8%B2%A0%E5%82%B5) As of June 30, 2025, derivative financial liabilities from forward steel contracts were measured using Level 1 valuation, with a fair value of **RMB 2,215 thousand** Financial Assets and Liabilities Measured at Fair Value (As of June 30, 2025) | Item | Fair Value as of June 30, 2025 (RMB thousand) | Fair Value Measurement Classified as Level 1 as of June 30, 2025 (RMB thousand) | | :--- | :--- | :--- | | Derivative financial liabilities arising from forward steel contracts | 2,215 | 2,215 | - During the six months ended June 30, 2025, there were no transfers between Level 1 and Level 2, nor any transfers into or out of Level 3[60](index=60&type=chunk) [21(b) Fair value of financial assets and liabilities not measured at fair value](index=25&type=section&id=21(b)%20%E4%B8%A6%E9%9D%9E%E4%BB%A5%E5%85%AC%E5%B9%B3%E5%80%BC%E8%A8%88%E9%87%8F%E7%9A%84%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2%E5%8F%8A%E8%B2%A0%E5%82%B5%E7%9A%84%E5%85%AC%E5%B9%B3%E5%80%BC) As of December 31, 2024, and June 30, 2025, there were no material differences between the carrying amounts and fair values of the Group's financial instruments measured at amortized cost - As of December 31, 2024, and June 30, 2025, there were no material differences between the carrying amounts and fair values of the Group's financial instruments measured at amortized cost[62](index=62&type=chunk) [22 Commitments](index=25&type=section&id=22%20%E6%89%BF%E6%93%94) As of June 30, 2025, the Group's outstanding capital commitments not provided for in the interim financial report amounted to **RMB 967 thousand**, primarily for production equipment expansion Outstanding Capital Commitments (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Commitments in respect of property, plant and equipment – contracted | 967 | 183 | - The above commitments refer to the Group's planned expansion of production equipment[63](index=63&type=chunk) [23 Significant Related Party Transactions](index=25&type=section&id=23%20%E9%87%8D%E5%A4%A7%E9%97%9C%E8%81%AF%E6%96%B9%E4%BA%A4%E6%98%93) For the six months ended June 30, 2025, the Group engaged in transactions with related parties, including sales of scrap materials, interest income, operating lease expenses, and a net decrease in amounts due to related parties Significant Related Party Transactions (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Sales of scrap materials | 4,106 | 5,782 | | Interest income | 550 | 550 | | Operating lease expenses | 48 | 48 | | Net decrease in amounts due to related parties | 55 | 217 | - Scrap materials were sold to related parties at cost, and the Group recognized no profit or loss from these transactions[64](index=64&type=chunk) [Management Discussion and Analysis](index=25&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 management's perspective on the company's business performance, financial results, liquidity, and risk factors [Business Review and Outlook](index=25&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7%E5%8F%8A%E5%B1%95%E6%9C%9B) As a leading galvanized steel product manufacturer in Jiangsu, China, the Group's revenue from principal activities decreased by **27.0%** in H1 2025 due to lower sales prices and demand; the company anticipates market improvement in H2 and will focus on market development, quality control, and cost management - The Group is a leading midstream galvanized steel product manufacturer in the home appliance sector in Jiangsu Province, China, primarily engaged in the production and sale of cold rolled steel coils, non-color coated galvanized steel products, and color coated galvanized steel products[65](index=65&type=chunk) - For the six months ended June 30, 2025, the Group's revenue from principal activities (continuing operations) was approximately **RMB 731,393 thousand**, a decrease of approximately **27.0%** compared to the corresponding period in 2024[65](index=65&type=chunk) - The decrease in revenue was mainly due to a decline in sales prices and reduced demand for various products[65](index=65&type=chunk) - In the first half of 2025, the total sales volume of cold rolled steel coils and galvanized steel products was approximately **135,376 tonnes**, a decrease of approximately **19.4%** compared to the corresponding period in 2024[66](index=66&type=chunk) - Gross profit (continuing operations) was approximately **RMB 58,459 thousand**, a decrease of approximately **RMB 61,910 thousand** compared to 2024, with the gross profit margin decreasing from **12.0%** to **8.0%**[66](index=66&type=chunk) - The company expects that the continuation of consumer subsidy policies and the expansion of "trade-in" policies will improve market demand in the second half of 2025, and will continue to focus on market development, strengthen product quality control, and strictly control production costs[67](index=67&type=chunk) - The Group has discontinued its property management business in the Philippines due to significant discrepancies from expectations and uncertainties, but it has no material impact on the Group's business[67](index=67&type=chunk) [Financial Review](index=27&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) For the six months ended June 30, 2025, the Group's continuing operations experienced significant declines in revenue, gross profit, profit for the period, and EPS, with net profit margin falling from **6.2%** to **1.4%**, and changes in current ratio and gearing ratio Key Financial Data and Performance Ratios for Continuing Operations (For the six months ended June 30) | Indicator | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Revenue (RMB thousand) | 731,393 | 1,002,304 | | Gross profit (RMB thousand) | 58,459 | 120,369 | | Gross profit margin | 8.0% | 12.0% | | Profit for the period (RMB thousand) | 10,567 | 62,054 | | Net profit margin | 1.4% | 6.2% | | Earnings per share (RMB cents) | 1.74 | 10.24 | Key Performance Ratios (As of June 30, 2025) | Indicator | June 30, 2025 (Unaudited) | December 31, 2024 (Unaudited) | | :--- | :--- | :--- | | Current ratio | 1.8 | 1.9 | | Gearing ratio | 0.5 | 0.4 | [Financial Performance](index=28&type=section&id=%E8%B2%A1%E5%8B%99%E6%A5%AD%E7%B8%BE) The Group's financial performance significantly declined in H1 2025, with total revenue down **27.2%**, and substantial reductions in gross profit, gross profit margin, profit before tax, and profit for the period, mainly due to decreased sales volume and average selling prices, and adverse external factors [Revenue](index=28&type=section&id=%E6%94%B6%E7%9B%8A) For the six months ended June 30, 2025, the Group's total revenue decreased by **27.2%** year-on-year to approximately **RMB 732,422 thousand**, primarily due to a **19.4%** decrease in overall sales volume and a **9.4%** decrease in average selling price - The Group's total revenue was approximately **RMB 732,422 thousand**, representing a decrease of approximately **27.2%** compared to the corresponding period last year[69](index=69&type=chunk) - The decrease in revenue was mainly due to an overall decrease in sales volume of approximately **19.4%** and a decrease in average selling price of approximately **9.4%**[69](index=69&type=chunk) Analysis of Revenue, Sales Volume and Average Selling Price by Product and Service (For the six months ended June 30) | Product/Service | 2025 Revenue (RMB thousand) | 2025 Sales Volume (tonnes) | 2025 Average Selling Price (RMB/tonne) | 2024 Revenue (RMB thousand) | 2024 Sales Volume (tonnes) | 2024 Average Selling Price (RMB/tonne) | Revenue Change (%) | Sales Volume Change (%) | Average Selling Price Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cold rolled coils | 81,453 | 19,087 | 4,267 | 76,329 | 16,230 | 4,703 | 6.7% | 17.6% | (9.3%) | | Non-color coated galvanized steel products | 368,310 | 71,211 | 5,172 | 525,839 | 93,482 | 5,625 | (30.0%) | (23.8%) | (8.1%) | | Color coated galvanized steel products | 281,630 | 45,078 | 6,248 | 400,136 | 58,330 | 6,860 | (29.6%) | (22.7%) | (8.9%) | | **Subtotal continuing operations** | **731,393** | **135,376** | **5,403** | **1,002,304** | **168,042** | **5,965** | **(27.0%)** | **(19.4%)** | **(9.4%)** | | Provision of property management services (discontinued operations) | 1,029 | | | 3,169 | | | (67.5%) | | | | **Total** | **732,422** | | | **1,005,473** | | | **(27.2%)** | | | [Gross Profit and Gross Profit Margin](index=29&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) For the six months ended June 30, 2025, the Group's gross profit was approximately **RMB 58,848 thousand**, with the overall gross profit margin decreasing from **12.1%** in 2024 to **8.0%**, mainly due to lower sales volume and average selling prices, leading to reduced production facility utilization - The Group's gross profit was approximately **RMB 58,848 thousand**, with the overall gross profit margin decreasing from **12.1%** in 2024 to **8.0%** in 2025[71](index=71&type=chunk) - The decrease in gross profit was mainly due to a simultaneous decrease in overall sales volume and average selling prices of products, with the reduction in sales volume leading to lower utilization of production facilities[71](index=71&type=chunk) Analysis of Gross Profit, Gross Profit Contribution and Gross Profit Margin by Product and Service (For the six months ended June 30) | Product/Service | 2025 Gross Profit (RMB thousand) | 2025 Percentage (%) | 2025 Gross Profit Margin (%) | 2024 Gross Profit (RMB thousand) | 2024 Percentage (%) | 2024 Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cold rolled coils | 5,015 | 8.5% | 6.2% | 6,174 | 5.1% | 8.1% | | Non-color coated galvanized steel products | 29,037 | 49.3% | 7.9% | 64,597 | 53.3% | 12.3% | | Color coated galvanized steel products | 24,407 | 41.5% | 8.7% | 49,598 | 40.9% | 12.4% | | **Subtotal continuing operations** | **58,459** | **99.3%** | **8.0%** | **120,369** | **99.3%** | **12.0%** | | Provision of property management services (discontinued operations) | 389 | 0.7% | 37.8% | 842 | 0.7% | 26.6% | | **Total** | **58,848** | **100.0%** | **8.0%** | **121,211** | **100.0%** | **12.1%** | [Other Income](index=29&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) For the six months ended June 30, 2025, other income from continuing operations was approximately **RMB 2,295 thousand**, a decrease from **RMB 3,621 thousand** in the prior year, primarily comprising interest income and net exchange gains - The Group's other income from continuing operations for the six months ended June 30, 2025, was approximately **RMB 2,295 thousand** (2024: **RMB 3,621 thousand**)[72](index=72&type=chunk) - Other income primarily includes interest income and net exchange gains[72](index=72&type=chunk) [Selling Expenses](index=29&type=section&id=%E9%8A%B7%E5%94%AE%E8%B2%BB%E7%94%A8) The Group's selling expenses decreased from **RMB 33,428 thousand** in the prior year to **RMB 31,968 thousand** in 2025, mainly due to reduced transportation costs associated with lower sales volume - The Group's selling expenses decreased from approximately **RMB 33,428 thousand** for the six months ended June 30, 2024, to approximately **RMB 31,968 thousand** for the current period[73](index=73&type=chunk) - The decrease was mainly due to reduced transportation costs as sales volume decreased[73](index=73&type=chunk) [Administrative Expenses](index=30&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) The Group's administrative expenses from continuing operations slightly increased from approximately **RMB 9,329 thousand** in the prior year to approximately **RMB 10,562 thousand** in 2025 - The Group's administrative expenses from continuing operations slightly increased from approximately **RMB 9,329 thousand** for the six months ended June 30, 2024, to approximately **RMB 10,562 thousand** for the current period[74](index=74&type=chunk) [Finance Costs](index=30&type=section&id=%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) The Group's finance costs from continuing operations for the six months ended June 30, 2025, decreased by approximately **28.6%** to **RMB 7,276 thousand**, primarily d

Group 1 - The core viewpoint of the article highlights the performance of the Southern Science and Technology Chip ETF (588890), which opened with a slight increase of 0.08% at 2.590 yuan [1] - The major holdings of the ETF include companies such as SMIC, which rose by 0.70%, and Huada Semiconductor, which increased by 1.71%, while Cambrian Technology saw a decline of 2.04% [1] - The ETF's performance benchmark is the Shanghai Stock Exchange Science and Technology Innovation Board Chip Index, managed by Southern Fund Management Co., Ltd., with a return of 157.29% since its establishment on April 15, 2024, and a monthly return of 27.99% [1]