香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示 概 不 就 因 本 公 告 全 部 或 任 何 部 分 內 容 而 產 生 或 因 依 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 China Golden Classic Group Limited 中國金典集團有限公司 （於開曼群島註冊成立之有限公司） （股份代號：8281） 截至二零二五年六月三十日止六個月之 中期業績公告 香 港 聯 合 交 易 所 有 限 公 司（「聯 交 所」）GEM的特色 GEM的 定 位，乃 為 相 比 起 其 他 在 聯 交 所 上 市 的 公 司 帶 有 較 高 投 資 風 險 的 中 小 型 公 司 提 供 一 個 上 市 的 市 場。有 意 投 資 的 人 士 應 了 解 投 資 於 該 等 公 司 的 潛 在 風 險，並 應 經 過 審 慎 周 詳 的 考 慮 後 方 作 出 投 資 決 定。 由於在GEM上 市 的 公 司 普 遍 為 中 小 型 公 司，在GEM買賣的證 ...

中 國 金 典 集 團 有 限 公 司（「本公司」）董 事（「董 事」）會（「董事會」）謹 此 宣 佈，將 於 二 零 二 五 年 八 月 二 十 二 日（星 期 五）舉 行 董 事 會 會 議，以 商 討 以 下 事 項（其 中 包 括）： 承董事會命 中國金典集團有限公司 主 席 李秋雁 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示 概 不 就 因 本 公 告 全 部 或 任 何 部 分 內 容 而 產 生 或 因 依 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 China Golden Classic Group Limited 中國金典集團有限公司 （於開曼群島註冊成立之有限公司） （股份代號：8281） 董事會會議通告 香 港，二 零 二 五 年 八 月 八 日 於 本 公 告 日 期，執 行 董 事 為 李 秋 雁 女 士、童 星 先 生 及 杜 永 衛 女 士，以 及 獨 立 非 執 行 董 事 為 葉 敬 仲 先 生、鄧 維 祐 先 生 及 潘 ...

[Supplemental Announcement Regarding the Annual Report for the Year Ended December 31, 2024](index=1&type=section&id=%E6%9C%89%E5%85%B3%E6%88%AA%E8%87%B3%E4%BA%8C%E9%9B%B6%E4%BA%8C%E5%9B%9B%E5%B9%B4%E5%8D%81%E4%BA%8C%E6%9C%88%E4%B8%89%E5%8D%81%E4%B8%80%E6%97%A5%E6%AD%A2%E5%B9%B4%E5%BA%A6%E5%B9%B4%E6%8A%A5%E4%B9%8B%E8%A1%A5%E5%85%85%E5%85%AC%E5%91%8A) This announcement supplements the 2024 annual report with additional details on the share option scheme and includes a Board compliance statement [Background of the Announcement and Company Information](index=1&type=section&id=%E5%85%AC%E5%91%8A%E8%83%8C%E6%99%AF%E4%B8%8E%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF) This supplemental announcement for the 2024 annual report provides additional information on the share option scheme for China Golden Classic Group Limited (stock code: 8281) - This announcement is a supplement to the company's annual report for the year ended December 31, 2024, published on April 24, 2025[3](index=3&type=chunk) - The supplemental announcement aims to provide additional information regarding the share option scheme[3](index=3&type=chunk) - The company is **China Golden Classic Group Limited**, incorporated in the Cayman Islands with stock code **8281**[2](index=2&type=chunk) [Supplemental Information on the Share Option Scheme](index=1&type=section&id=%E8%B4%AD%E8%82%A1%E6%9D%83%E8%AE%A1%E5%88%92) The share option scheme had 100,000,000 shares available for grant throughout 2024, with no options granted and no sub-limit for service providers **Total Shares Available for Grant under the Share Option Scheme** | Date | Total Share Options Available for Grant (Shares) | | :--- | :--- | | January 1, 2024 | 100,000,000 | | December 31, 2024 | 100,000,000 | - No sub-limit for service providers has been established under the share option scheme[4](index=4&type=chunk) - **No options have been granted** under the share option scheme, hence there is no specific vesting period for granted options[4](index=4&type=chunk) - The above supplemental information does not affect other information contained in the 2024 annual report[4](index=4&type=chunk) [Board of Directors and Compliance Statement](index=1&type=section&id=%E8%91%A3%E4%BA%8B%E4%BC%9A%E5%8F%8A%E5%90%88%E8%A7%84%E5%A3%B0%E6%98%8E) The Board of Directors accepts full responsibility for this announcement's compliance with GEM Listing Rules and confirms its accuracy and completeness - As of the announcement date, the Board comprises **three executive Directors** and **three independent non-executive Directors**[6](index=6&type=chunk) - The Board confirms this announcement complies with the **GEM Listing Rules** and accepts full responsibility for its accuracy and completeness[7](index=7&type=chunk) - This announcement will be published on the HKEXnews website and the company's website for at least seven days[8](index=8&type=chunk)

致：香港交易及結算所有限公司 本月底法定/註冊股本總額： HKD 20,000,000 公司名稱: 中國金典集團有限公司 呈交日期: 2025年8月1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) | 08281 | 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 | | | 2,000,000,000 | HKD | | 0.01 HKD | | 20,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | | | 本月底結存 | | | 2,000,000,000 | HKD | | 0.01 HKD | | 20,000,000 | 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 ...

Group 1 - The core business of the company is focused on the production and sales of functional toothpaste, which has seen significant growth due to increasing consumer awareness of oral health in China [2] - As of May 6, the company's stock price closed at HKD 0.060, a decrease of 6.25% from the previous trading day, with an intraday low of HKD 0.051, marking a new low for the past year [1] - The company ranked eighth in the Chinese functional toothpaste market and third in the leather care products market in 2015, indicating its competitive position within these sectors [1] Group 2 - The company has developed and patented the Fe biological enzyme technology for toothpaste production, which has been recognized as a national high-tech project by the Ministry of Science and Technology of China [2] - The functional toothpaste has been clinically tested and certified by various medical institutions, proving its effectiveness in preventing oral issues and ensuring safety for daily use [2] - The company launched the 'Fe Jindian Dentist' brand in 2012 to enhance the brand image of its functional toothpaste, reflecting its strategic marketing efforts [2]

Summary of Key Points Core Viewpoint - As of May 6, a total of 55 stocks reached their 52-week highs, with notable performers including Shandong Molong (00568), Tokyo Central Auction (01939), and Andeli Juice (02218) showing significant increases in their high rates [1]. 52-Week Highs - Shandong Molong (00568) achieved a closing price of 5.020 with a peak of 5.250, marking a high rate of 185.33% - Tokyo Central Auction (01939) closed at 0.980, reaching a high of 3.180, resulting in a high rate of 112.00% - Andeli Juice (02218) closed at 16.000 with a peak of 23.950, reflecting a high rate of 87.11% - Other notable stocks include: - Crown Holdings (01872) with a high rate of 32.00% - Wutong International (00613) at 30.00% - Yao Cai Securities Financial (01428) at 10.47% [1]. 52-Week Lows - Madison Holdings (08057) recorded a closing price of 0.053, with a low of 0.050, reflecting a decline of 26.47% - China Classic Group (08281) closed at 0.060, reaching a low of 0.051, indicating a drop of 15.00% - Other companies experiencing significant declines include: - Zhongsheng United (03332) with a decline of 6.02% - Dingyi Group Investment (00508) at -5.88% - Derivative Group (06893) at -4.62% [2].

Financial Performance - The company's revenue for the fiscal year ending December 31, 2024, was approximately RMB 261.3 million, a decrease of about 10.5% compared to RMB 292.0 million in the previous year[10]. - The gross profit margin decreased to approximately 34.2%, down by 3.3% from 37.5% in the previous year[10]. - The net profit for the year was approximately RMB 3.0 million, representing a decline of about 57.7% from RMB 7.1 million in the previous year, with a net profit margin of 1.1%[21]. - The group's revenue decreased by approximately 10.5% from RMB 292.0 million in the previous year to RMB 261.3 million this year, primarily due to a decline in oral care product sales[23]. - Revenue from the oral care product segment fell by approximately RMB 36.0 million or 35.7% to RMB 65.0 million, attributed to label adjustments, insufficient new products, and reduced customer traffic in offline stores[23]. - The group's gross profit decreased by approximately 18.3% from RMB 109.6 million to RMB 89.5 million, mainly due to a drop in sales of higher-margin oral care products[26]. - Administrative expenses for the year were approximately RMB 52.2 million, a decrease of about 7.8% from RMB 56.6 million in the previous year, driven by reduced R&D and maintenance costs[29]. - The capital debt ratio decreased to approximately 27.8% from 32.2% in the previous year, primarily due to a reduction in liabilities[39]. - The group has sufficient cash to meet its operational and capital needs, supported by internal cash flow and bank financing[35]. - The group’s financial liabilities of approximately RMB 38.6 million are all due within the next 12 months, while net current assets and net assets were approximately RMB 105.4 million and RMB 262.3 million, respectively, indicating no liquidity risk[53]. Revenue Segments - Revenue from household hygiene products increased by approximately 5.4% to RMB 182.4 million, up from RMB 173.1 million in the previous year, indicating a positive outlook for future sales[10]. - Revenue from the household hygiene product segment increased by approximately RMB 9.3 million or 5.4% to RMB 182.4 million, driven by ongoing promotions[23]. Operational Developments - The company plans to enhance automation levels for its existing oil stain removal products and introduce a high-end oil stain removal product line to meet market demand[16]. - An advanced fully automated production line for toilet cleaners is set to commence operations, aiming to boost overall sales of kitchen and bathroom products[16]. - The company will increase R&D efforts for household cleaning products, utilizing carbon dot surfactant technology to improve product quality[16]. - The newly renovated cosmetics workshop is expected to be operational by 2025, providing more OEM products for clients[16]. Challenges and Strategies - The company faces challenges in promoting its unique core technology, FE composite enzyme, due to regulatory restrictions on medical terminology in marketing[17]. - The company will leverage strong product efficacy and consumer preferences through innovative marketing strategies to revive sales in oral care products[17]. Governance and Management - The management team has extensive experience, with key members holding senior economic titles and relevant industry qualifications[62][63][64][69]. - The group has a structured management team with diverse backgrounds in finance, operations, and education[62][63][64][69]. - The board consists of six directors, with two being women, reflecting the company's commitment to gender diversity[181]. - The company aims to maintain at least one-third of its board and senior management positions occupied by women[179]. - The board is responsible for maintaining effective risk management and internal control systems, with no significant deficiencies found in operations during the year[195]. Shareholder and Financial Policies - The company reported a net profit level that does not warrant the declaration of a final dividend for the fiscal year ending December 31, 2023, with a previous year's dividend of RMB 0.38 per share[79]. - The company has adopted a dividend policy based on its financial performance, cash flow, and overall business conditions[79]. - The company has established a corporate website to facilitate effective communication with shareholders and the public[199]. - The company will continue to strengthen communication with shareholders and investors to build close relationships[199]. Compliance and Risk Management - The group has implemented environmental protection measures and complied with applicable environmental laws and regulations in all significant aspects during the year[56]. - The group has not conducted any related party transactions or ongoing related party transactions that require disclosure under GEM listing rules during the year[58]. - The company has adopted insider information policies to ensure the accuracy and timeliness of disclosures[198]. - The internal audit function is independent and assesses the effectiveness of risk management and internal control systems[195]. Employee and Training Policies - The group has a total of 272 employees as of December 31, 2024, compared to 263 employees in 2023, indicating a growth of approximately 3.4%[133]. - The company emphasizes employee training to enhance customer service capabilities and product quality control[60]. - All directors participated in ongoing professional training to update their knowledge and skills, ensuring informed contributions to the board[184]. Shareholder Structure - As of December 31, 2024, the major shareholders include Ms. Li Qiu Yan with 593,625,000 shares, representing approximately 59.36% of the company's ordinary shares[112]. - Mr. Tong Xing holds 106,875,000 shares, accounting for about 10.69% of the company's ordinary shares[112]. - The beneficial owner of Zhong Bao Ma Li Investment Limited, Ms. Li, is deemed to have an interest in the shares held by the company[113]. - The beneficial owner of Tong Xing Holdings Limited, Mr. Tong, is also deemed to have an interest in the shares held by the company[113]. - Ms. Zhang Li, spouse of Mr. Tong, holds 106,875,000 shares, which is equivalent to approximately 10.69%[115]. Audit and Compliance - The external auditor, Shinewing (HK) CPA Limited, was paid HKD 600,000 for statutory audit services during the year[191]. - The audit committee conducted three meetings during the year to oversee internal controls and risk management systems[165]. - The audit committee's chairman is an independent non-executive director, ensuring unbiased oversight[164]. - The board reviewed the implementation and effectiveness of the shareholder communication policy during the year and expressed satisfaction[199].

Financial Performance - The company's revenue for the year ended December 31, 2024, was RMB 292,009 thousand, a decrease of 10.2% compared to RMB 261,297 thousand for the previous year[4] - Gross profit for the year was RMB 109,556 thousand, representing a 22.5% increase from RMB 89,486 thousand in the prior year[4] - The net profit for the year was RMB 7,061 thousand, up 138.5% from RMB 2,969 thousand in the previous year[4] - The total comprehensive income for the year was RMB 8,482 thousand, compared to RMB 2,434 thousand for the previous year, indicating a significant increase[4] - Basic and diluted earnings per share were RMB 0.30 for the year, compared to RMB 0.71 in the previous year[4] - The company reported a total comprehensive income of RMB 2,434,000 for the year ended December 31, 2024, compared to RMB 8,482,000 for the previous year, reflecting a decrease of approximately 71.3%[9] - The net profit for the year was RMB 2,969,000, down from RMB 7,061,000 in the previous year, indicating a decline of about 57.9%[9] - The company declared dividends totaling RMB 3,800,000 for the year ended December 31, 2024, compared to RMB 5,000,000 in the previous year, representing a reduction of 24%[9] - The basic and diluted earnings per share for 2024 were RMB 2,969,000, down 57.9% from RMB 7,061,000 in 2023[24] - The net profit for the year was approximately RMB 3.0 million, down about 57.7% from RMB 7.1 million in the previous year, resulting in a net profit margin of approximately 1.1%, a decrease of about 1.3% from the previous year's 2.4%[34] Assets and Liabilities - Non-current assets decreased to RMB 158,734 thousand from RMB 169,821 thousand in the previous year, reflecting a decline of 6.5%[5] - Current assets totaled RMB 176,379 thousand, slightly down from RMB 178,742 thousand in the previous year[5] - The company's total liabilities decreased to RMB 70,943 thousand from RMB 84,881 thousand, a reduction of 16.4%[6] - The company's total assets remained stable at RMB 264,170 thousand, compared to RMB 263,682 thousand in the previous year[6] - The company's capital and reserves totaled RMB 262,316 thousand, consistent with the previous year's figure of RMB 263,682 thousand[6] - Total assets decreased to RMB 335,113,000 in 2024 from RMB 348,563,000 in 2023, a reduction of 3.8%[19] - Total liabilities decreased to RMB 72,797,000 in 2024 from RMB 84,881,000 in 2023, a decline of 14.3%[19] - Total equity as of December 31, 2024, was approximately RMB 262.3 million, slightly down from RMB 263.7 million as of December 31, 2023[46] - Current assets were approximately RMB 176.4 million, down from RMB 178.7 million as of December 31, 2023, with current liabilities of approximately RMB 70.9 million[46] - The capital debt ratio as of December 31, 2024, was approximately 27.8%, down from 32.2% as of December 31, 2023, primarily due to a reduction in liabilities[51] Revenue Segmentation - Revenue from external customers for the oral care segment was RMB 65,015,000 in 2024, down 35.6% from RMB 101,058,000 in 2023[18] - Total revenue for the household hygiene segment was RMB 182,373,000 in 2024, an increase of 5.4% from RMB 173,087,000 in 2023[18] - The revenue from the oral care product segment decreased by approximately RMB 36.0 million or 35.7% to about RMB 65.0 million, primarily due to reduced sales volume[35] - The revenue from the household hygiene product segment increased by approximately RMB 9.3 million or about 5.4% to approximately RMB 182.4 million, attributed to strategic adjustments and increased demand[35] Costs and Expenses - The gross profit decreased by approximately 18.3% to about RMB 89.5 million, mainly due to reduced sales volume in the higher-margin oral care products[39] - The gross profit margin decreased from approximately 37.5% in the previous year to about 34.2% in the current year, a reduction of about 3.3%[40] - Selling and distribution costs decreased by approximately RMB 11.1 million or 22.2% to about RMB 38.8 million, primarily due to reduced advertising and promotional expenses[41] - Administrative expenses for the year amounted to RMB 52.2 million, a decrease of approximately RMB 4.4 million or 7.8% compared to RMB 56.6 million in the same period last year[42] - Financing costs for the year were approximately RMB 0.2 million, down by about RMB 0.3 million or 62.1% from RMB 0.5 million in the same period last year[43] - Income tax expenses for the year were approximately RMB 0.04 million, a decrease of about RMB 0.55 million or 93.2% compared to RMB 0.59 million in the same period last year[44] Corporate Governance and Compliance - The Audit Committee was established in June 2016, ensuring compliance with GEM listing rules and overseeing financial reporting and internal controls[73] - The company has maintained compliance with relevant laws and regulations, with no significant violations reported this year[69] - The company is committed to maintaining high standards of corporate governance for the best interests of shareholders[80] - The company has complied with all applicable code provisions during the year[81] - The roles of the Chairman and the CEO are clearly separated, with Li Qiuyan serving as Chairman and Tong Xing as CEO[82] - The company has maintained sufficient public float since its listing date, in accordance with GEM listing rules[84] Future Outlook and Strategy - The company is expected to continue its focus on expanding its market presence and product development in the coming years[10] - The company aims to enhance automation levels in its existing oil stain removal products to meet growing market demand[71] - New high-end oil stain removal products will be launched to cater to diverse market needs[71] - The company plans to invest in an advanced automated production line for toilet cleaners, leveraging its market network to boost sales[71] - The company will increase R&D efforts for household cleaning products, incorporating carbon dot surfactant technology into its offerings[71] - The company faces challenges in promoting its unique core technology, FE composite enzyme, due to regulatory restrictions on medical claims[72] Employee and Operational Information - The group had approximately 272 employees as of December 31, 2024, compared to 263 employees in the previous year[56] - Employee costs for the year were approximately RMB 29.1 million, down from RMB 32.8 million in the previous year, mainly due to a reduction in sales commissions[56] Lease Agreements - The company signed a lease agreement for a property in Shanghai with a total sales area of approximately 2,908.27 square meters, with a fixed lease term of 2 years starting from February 1, 2025, at a quarterly rent of RMB 470,000[57] - Jiangsu Snow Leopard signed a lease agreement with Shanghai Fumeizi for a fixed term of two years, starting from December 1, 2022, with quarterly rent of RMB 480,000[66] - A subsequent lease agreement is planned for December 1, 2024, for two months at a rent of RMB 320,000[68] Foreign Exchange and Risk Management - The company has not entered into any formal foreign exchange hedging policies and has limited ability to mitigate foreign exchange rate risks due to the non-convertibility of the RMB[60] - As of December 31, 2024, trade receivables accounted for approximately 21% from the largest customer and about 38% from the top five customers, compared to 12% and 26% respectively in 2023[62] - The company's net current assets and net assets as of December 31, 2024, were approximately RMB 105.4 million and RMB 262.3 million, indicating no liquidity risk[63]

[Company Information](index=3&type=section&id=Company%20Information) [Company Overview](index=3&type=section&id=Company%20Information) This report outlines the corporate structure of China Golden Classic Group Limited, including key information such as board members, committee compositions, principal offices, legal advisors, and share registrars - The company's Board of Directors comprises three executive directors and three independent non-executive directors, with Ms. Li Qiuyan, an executive director, serving as Chairperson[3](index=3&type=chunk) - The chairpersons of the company's Audit Committee, Remuneration Committee, and Nomination Committee are Mr. Tang Wai Yu, Mr. Yip King Chung, and Ms. Li Qiuyan, respectively[3](index=3&type=chunk) [Interim Results](index=4&type=section&id=Interim%20Results) [Consolidated Statement of Profit or Loss](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2024, the Group's revenue decreased by 14.0% year-on-year to RMB 110.46 million, with gross profit declining by 19.3% to RMB 38.28 million, while loss for the period expanded to RMB 6.16 million from RMB 0.94 million in the prior period, resulting in a basic loss per share of RMB 0.62 cents Consolidated Statement of Profit or Loss Summary (For the six months ended June 30) | Metric | 2024 (RMB thousands) | 2023 (RMB thousands) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 110,456 | 128,412 | -14.0% | | Gross Profit | 38,276 | 47,442 | -19.3% | | Loss Before Tax | (6,155) | (170) | -3520.6% | | Loss for the Period | (6,155) | (940) | -554.8% | | Basic Loss Per Share (RMB cents) | (0.62) | (0.09) | -588.9% | [Consolidated Statement of Financial Position](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, the Group's total assets were RMB 304.50 million, a 12.6% decrease from the end of 2023, with total liabilities reducing to RMB 51.27 million and net assets at RMB 253.23 million, while net current assets remained relatively stable at RMB 90.91 million Consolidated Statement of Financial Position Summary | Metric | As of June 30, 2024 (RMB thousands) | As of December 31, 2023 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Non-current Assets | 162,323 | 169,821 | -4.4% | | Current Assets | 142,179 | 178,742 | -20.5% | | **Total Assets** | **304,502** | **348,563** | **-12.6%** | | Current Liabilities | 51,268 | 84,881 | -39.6% | | **Total Liabilities** | **51,268** | **84,881** | **-39.6%** | | **Net Assets** | **253,234** | **263,682** | **-4.0%** | [Consolidated Statement of Changes in Equity](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2024, total shareholders' equity decreased from RMB 263.7 million at the beginning of the period to RMB 253.2 million at the end, primarily due to a loss for the period of RMB 6.16 million and dividends recognized as distribution of RMB 3.80 million - Total shareholders' equity decreased from **RMB 263.7 million** as of January 1, 2024, to **RMB 253.2 million** as of June 30, 2024[8](index=8&type=chunk) - The primary factors contributing to the decrease in equity were a loss for the period of **RMB 6.16 million** and dividend distributions of **RMB 3.80 million**[8](index=8&type=chunk) [Consolidated Statement of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) During the period, net cash outflow from operating activities was RMB 13.10 million, from investing activities was RMB 4.33 million, and from financing activities was RMB 4.48 million, resulting in a net decrease in cash and cash equivalents of RMB 21.91 million, with an ending balance of RMB 55.67 million Cash Flow Statement Summary (For the six months ended June 30) | Activity Type | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (13,100) | (28,171) | | Net Cash Used in Investing Activities | (4,329) | (4,192) | | Net Cash Used in Financing Activities | (4,478) | (1,698) | | **Net Decrease in Cash and Cash Equivalents** | **(21,907)** | **(34,061)** | | Cash and Cash Equivalents at Beginning of Period | 77,932 | 73,011 | | **Cash and Cash Equivalents at End of Period** | **55,665** | **39,297** | [Notes to Financial Information](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Interim%20Financial%20Information) The financial notes detail the basis of preparation, accounting policies, segment information, and specifics of various items for the financial statements, with the Group primarily engaged in the manufacturing and sale of oral care, leather care, and household hygiene products, and the first-time application of several HKFRS amendments during the period had no significant impact on financial position - The Group is primarily engaged in the manufacturing and trading of oral care, leather care, and household hygiene products[11](index=11&type=chunk) - During this interim period, the Group first applied several amendments to Hong Kong Financial Reporting Standards, which did not have a significant impact on financial performance or position[13](index=13&type=chunk) [Revenue and Segment Information](index=12&type=section&id=3.%20Revenue%20and%20Segment%20Information) The Group's revenue primarily derives from three segments: oral care, leather care, and household hygiene products, with household hygiene products being the largest revenue source, accounting for 64.9% of total revenue, while oral care product revenue significantly decreased by 31.8% year-on-year, being the main reason for the overall revenue decline Segment Revenue (For the six months ended June 30) | Segment | 2024 (RMB thousands) | 2023 (RMB thousands) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Oral Care Products | 33,116 | 48,546 | -31.8% | | Leather Care Products | 5,641 | 6,506 | -13.3% | | Household Hygiene Products | 71,699 | 73,360 | -2.3% | | **Total** | **110,456** | **128,412** | **-14.0%** | [Dividends](index=17&type=section&id=7.%20Dividends) Approved by the Annual General Meeting, the company will pay a final dividend of HK 0.38 cents per ordinary share for the year ended December 31, 2024, compared to HK 0.559 cents per share paid in the prior period - Approval was granted for the payment of a final dividend of **HK 0.38 cents** per ordinary share for the year ended December 31, 2024[25](index=25&type=chunk) [Related Party Transactions](index=22&type=section&id=16.%20Related%20Party%20Transactions) During the period, the Group's related party transactions primarily included an office lease agreement with a company controlled by a close family member of Executive Director Ms. Li, and a bank facility of RMB 80 million personally guaranteed by Ms. Li - The Group entered into a two-year office lease agreement with an associated company controlled by a close family member of Executive Director Ms. Li[38](index=38&type=chunk) - Executive Director Ms. Li provided a personal guarantee for the Group's bank facility of **RMB 80 million**[38](index=38&type=chunk) [Business Review and Prospects](index=23&type=section&id=Business%20Review%20and%20Prospects) [Business Review](index=23&type=section&id=Business%20Review) For the six months ended June 30, 2024, the Group's turnover decreased by 14.0% year-on-year to RMB 110.5 million, primarily due to a significant 31.8% sales reduction in oral care products caused by new packaging, while net loss expanded from RMB 0.9 million in the prior period to RMB 6.2 million, an increase of 554.8%, and overall gross profit margin declined by 2.2 percentage points to 34.7% due to promotional pricing strategies H1 2024 Performance Overview | Metric | H1 2024 | H1 2023 | Change | | :--- | :--- | :--- | :--- | | Turnover | Approx. RMB 110.5 million | Approx. RMB 128.4 million | -14.0% | | Net Loss | Approx. RMB 6.2 million | Approx. RMB 0.9 million | +554.8% | | Gross Profit Margin | Approx. 34.7% | Approx. 36.9% | -2.2pp | - Oral care product turnover decreased by **31.8%**, being the primary reason for the overall revenue decline, attributed to updated product labels for regulatory compliance impacting consumer purchasing decisions[40](index=40&type=chunk) - Turnover for household hygiene products and leather care products also decreased by **2.3%** and **13.3%**, respectively[40](index=40&type=chunk) [Prospects and Outlook](index=24&type=section&id=Prospects%20and%20Outlook) Looking ahead, the Group faces uncertainties and opportunities, planning to strengthen R&D investment to validate the efficacy of bio-enzyme toothpaste, launch new products like high-efficiency toilet bowl cleaner to consolidate market position, and actively expand online sales channels to adapt to changing consumer shopping habits, while also addressing the challenge of counterfeit products - Enhanced R&D: Professionals, including a Fudan University PhD, have been hired to strengthen R&D efforts and provide more experimental data supporting the efficacy of bio-enzyme toothpaste[41](index=41&type=chunk) - Product Innovation: Plans to launch a high-efficiency toilet bowl cleaner in the third quarter to consolidate its position in the household hygiene products market[41](index=41&type=chunk) - Channel Transformation: Recognizing the trend of consumers shifting to online purchases, the company plans to leverage e-commerce technologies like live streaming to increase online sales share[41](index=41&type=chunk) [Management Discussion and Analysis](index=25&type=section&id=Management%20Discussion%20and%20Analysis) [Operating Results Analysis](index=25&type=section&id=Operating%20Results%20Analysis) During the period, turnover decreased by 14.0% to RMB 110.5 million, primarily due to declining sales of oral care products, while cost of sales decreased by 10.9% with reduced sales volume; however, gross profit declined by 19.3% and gross profit margin fell to 34.7% due to promotional pricing strategies, and net loss expanded to RMB 6.2 million despite slight decreases in selling and administrative expenses and significantly lower finance costs due to reduced borrowings - Turnover decreased by **14.0%** primarily due to reduced sales of oral care products caused by new packaging issues and the failure to launch competitive new household hygiene products in the first half[43](index=43&type=chunk) - Gross profit margin decreased from **36.9%** to **34.7%**, mainly due to the implementation of promotional pricing strategies during the period[45](index=45&type=chunk) - Selling and distribution costs and administrative expenses decreased by **9.4%** and **2.5%**, respectively, primarily benefiting from reduced promotion and R&D expenses[46](index=46&type=chunk)[47](index=47&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=26&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) As of June 30, 2024, the Group's financial position remained robust, with total shareholders' equity of approximately RMB 253 million and a current ratio of 2.77 indicating strong short-term solvency, while bank balances and cash were approximately RMB 55.7 million and the gearing ratio was 20.2%, with the Group believing it possesses sufficient cash and bank facilities to meet operational needs Financial Position Indicators | Metric | As of June 30, 2024 | As of December 31, 2023 | | :--- | :--- | :--- | | Total Shareholders' Equity | Approx. RMB 253.2 million | Approx. RMB 263.7 million | | Current Ratio | 2.77 | 2.11 | | Bank Balances and Cash | Approx. RMB 55.7 million | Approx. RMB 77.9 million | | Gearing Ratio | 20.2% | 32.2% | - The Group typically funds its operations with internally generated cash flows and possesses sufficient cash and bank facilities[52](index=52&type=chunk) [Employees and Remuneration Policy](index=28&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2024, the Group had 257 full-time employees, with staff costs of approximately RMB 13.9 million, a slight decrease from the prior period, and the company implements a competitive remuneration and benefits policy, determining compensation based on employee performance, responsibilities, and market conditions - As of June 30, 2024, the Group had **257** full-time employees[56](index=56&type=chunk) - Staff costs for the period were approximately **RMB 13.9 million**, a decrease from **RMB 14.4 million** in the prior period[56](index=56&type=chunk) [Other Information](index=29&type=section&id=Other%20Information) [Directors' and Chief Executives' Interests](index=29&type=section&id=Directors%20and%20Chief%20Executives%27%20Interests%20and%2For%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20or%20any%20Associated%20Corporation) Disclosures indicate that Executive Directors Ms. Li Qiuyan and Mr. Tong Xing hold 59.36% and 10.69% of the company's shares, respectively, through corporations they control, with major shareholders Zhongbao Mali and Tongxing Holdings holding the same proportions of shares Directors' Long Positions in the Company's Ordinary Shares | Name of Director | Capacity/Nature of Interest | Number of Shares | Approximate Percentage of the Company's Interest | | :--- | :--- | :--- | :--- | | Ms. Li Qiuyan | Interest in Controlled Corporation | 593,625,000 | 59.36% | | Mr. Tong Xing | Interest in Controlled Corporation | 106,875,000 | 10.69% | - Major shareholders Zhongbao Mali Investment Limited and Tongxing Holdings Group Limited are wholly-owned companies of Ms. Li Qiuyan and Mr. Tong Xing, respectively[59](index=59&type=chunk) [Corporate Governance](index=32&type=section&id=Corporate%20Governance) The company has adopted and complied with the Corporate Governance Code set out in the GEM Listing Rules during the reporting period, with the Audit Committee, comprising three independent non-executive directors, having reviewed these interim results, and the company has maintained sufficient public float since its listing date - The company has adopted and complied with the principles and provisions of the Corporate Governance Code[69](index=69&type=chunk) - The Audit Committee, comprising three independent non-executive directors, has reviewed the unaudited condensed consolidated results for the period with management[68](index=68&type=chunk) - The company has maintained a sufficient public float from its listing date up to the date of this report[70](index=70&type=chunk)

[Financial Highlights](index=2&type=section&id=Financial%20Highlights) This section provides a concise overview of the company's financial performance and position [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2024, group revenue decreased by 14.0% year-on-year to RMB 110.5 million, with loss for the period expanding significantly to RMB 6.155 million due to reduced gross profit Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (RMB thousand) | Indicator | For the Six Months Ended June 30 (Unaudited) | | | :--- | :--- | :--- | | | **2024** | **2023** | | | **RMB thousand** | **RMB thousand** | | **Revenue** | 110,456 | 128,412 | | **Gross Profit** | 38,276 | 47,442 | | **Loss Before Tax** | (6,155) | (170) | | **Loss for the Period** | (6,155) | (940) | | **Basic Loss Per Share (RMB cents)** | (0.62) | (0.09) | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, total group assets decreased to RMB 304.5 million from RMB 348.6 million at the end of 2023, with net assets slightly declining to RMB 253.2 million Condensed Consolidated Statement of Financial Position (RMB thousand) | Indicator | **June 30, 2024** | **December 31, 2023** | | :--- | :--- | :--- | | | **RMB thousand (Unaudited)** | **RMB thousand (Audited)** | | **Non-current Assets** | 162,323 | 169,821 | | **Current Assets** | 142,179 | 178,742 | | **Total Assets** | 304,502 | 348,563 | | **Current Liabilities** | 51,268 | 84,881 | | **Net Assets** | 253,234 | 263,682 | | **Cash and Cash Equivalents** | 55,665 | 77,932 | [Condensed Consolidated Statement of Changes in Equity](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) Total shareholders' equity decreased from RMB 264 million at the beginning of the period to RMB 253 million at the end, primarily due to the RMB 6.155 million loss and RMB 3.8 million dividend distribution - As of June 30, 2024, total shareholders' equity was **RMB 253 million**, a decrease from **RMB 264 million** at the beginning of the period[4](index=4&type=chunk) - The decrease in equity was primarily due to a **RMB 6.155 million** loss for the period and **RMB 3.8 million** in dividends recognized as distributions[4](index=4&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) In the first half of 2024, the group's cash position tightened, with net cash outflows from operating, investing, and financing activities leading to a RMB 21.91 million decrease in cash and cash equivalents Condensed Consolidated Statement of Cash Flows (RMB thousand) | Activity Category | For the Six Months Ended June 30 (Unaudited) | | | :--- | :--- | :--- | | | **2024** | **2023** | | | **RMB thousand** | **RMB thousand** | | **Net Cash Used in Operating Activities** | (13,100) | (28,171) | | **Net Cash Used in Investing Activities** | (4,329) | (4,192) | | **Net Cash Used in Financing Activities** | (4,478) | (1,698) | | **Net Decrease in Cash and Cash Equivalents** | (21,907) | (34,061) | | **Cash and Cash Equivalents at End of Period** | 55,665 | 39,297 | [Notes to the Condensed Consolidated Interim Financial Information](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Information) This section details the accounting policies and specific financial items supporting the interim financial statements [Basis of Preparation and Principal Accounting Policies](index=6&type=section&id=1.%20Basis%20of%20Preparation%20and%202.%20Principal%20Accounting%20Policies) The interim financial information is prepared under HKAS 34 on a historical cost basis, with consistent accounting policies, and the group primarily manufactures and trades oral, leather, and household care products - The group primarily engages in the manufacturing and trading of **oral care, leather care, and household hygiene products**[6](index=6&type=chunk) - The interim financial information is prepared in accordance with **HKAS 34**, with accounting policies consistent with the prior year[6](index=6&type=chunk)[7](index=7&type=chunk) [Revenue and Segment Information](index=7&type=section&id=3.%20Revenue%20and%20Segment%20Information) Total group revenue decreased by 14.0% year-on-year, primarily driven by a 31.8% decline in oral care products due to packaging changes, while household hygiene products also saw a slight 2.3% decrease amid increased market competition Revenue by Segment (RMB thousand) | Segment | For the Six Months Ended June 30 (Unaudited) | | **Year-on-Year Change** | | :--- | :--- | :--- | :--- | | | **2024** | **2023** | | | | **RMB thousand** | **RMB thousand** | | | **Oral Care Products** | 33,116 | 48,546 | -31.8% | | **Leather Care Products** | 5,641 | 6,506 | -13.3% | | **Household Hygiene Products** | 71,699 | 73,360 | -2.3% | | **Total** | **110,456** | **128,412** | **-14.0%** | - The primary reason for the decline in oral care product sales was the **update of product packaging** to comply with the "Measures for the Administration of Cosmetic Labeling," which affected consumer purchasing decisions[36](index=36&type=chunk)[40](index=40&type=chunk) [Income Tax Expense](index=9&type=section&id=4.%20Income%20Tax%20Expense) No income tax expense was recorded for the current period, compared to RMB 0.77 million in the prior period, as certain PRC subsidiaries enjoy preferential tax rates as high-tech or small-profit enterprises - Income tax expense for the current period was **zero**, compared to **RMB 0.77 million** in the prior period[13](index=13&type=chunk) - One subsidiary is recognized as a **high-tech enterprise**, enjoying a **15% preferential tax rate**, while another is recognized as a **small-profit enterprise**, enjoying a **5% preferential tax rate**[15](index=15&type=chunk) [Dividends](index=11&type=section&id=7.%20Dividends) The Board does not recommend an interim dividend for the six months ended June 30, 2024, while shareholders approved a final dividend of HK 0.38 cents per ordinary share for the year ended December 31, 2024 - The Board does not recommend an **interim dividend** for the current period[47](index=47&type=chunk) - Shareholders have approved a **final dividend of HK 0.38 cents per ordinary share** for the year ended December 31, 2024[18](index=18&type=chunk) [Key Asset and Liability Items](index=11&type=section&id=Key%20Asset%20and%20Liability%20Items) As of June 30, 2024, net trade receivables and bills receivable decreased to RMB 25.93 million from RMB 37.01 million, and trade payables and bills payable significantly dropped to RMB 17.36 million, with the group adding approximately RMB 4.836 million in property, plant, and equipment during the period Key Asset and Liability Items (RMB thousand) | Item | **June 30, 2024** | **December 31, 2023** | | :--- | :--- | :--- | | | **RMB thousand (Unaudited)** | **RMB thousand (Audited)** | | **Trade Receivables and Bills Receivable (Net)** | 25,933 | 37,005 | | **Trade Payables and Bills Payable** | 17,362 | 36,641 | - During the six months ended June 30, 2024, the group acquired approximately **RMB 4.836 million** in property, plant, and equipment[19](index=19&type=chunk) [Related Party Transactions](index=15&type=section&id=16.%20Related%20Party%20Transactions) Key related party transactions during the period included office rental from a company controlled by an executive director's close relative, the executive director's personal guarantee for RMB 80 million in bank financing, and total remuneration of RMB 0.727 million paid to directors and key management - The group leases offices from a company controlled by a **close relative of Executive Director Ms. Li**[34](index=34&type=chunk) - Executive Director Ms. Li provided a **personal guarantee for RMB 80 million** of the group's bank financing[34](index=34&type=chunk) - Total remuneration paid to directors and key management during the period was **RMB 0.727 million**, compared to **RMB 0.618 million** in the prior period[35](index=35&type=chunk) [Management Discussion and Analysis](index=16&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an in-depth review of the company's operational performance, financial position, and future strategic outlook [Business Review and Prospects](index=16&type=section&id=Business%20Review%20and%20Prospects) In H1 2024, group revenue declined 14% to RMB 110.5 million and net loss expanded to RMB 6.2 million due to oral care product packaging changes and increased market competition; future strategies focus on R&D, new product launches, and expanding online sales channels Business Performance Summary (RMB million) | Indicator | **H1 2024** | **H1 2023** | **Change** | | :--- | :--- | :--- | :--- | | **Revenue** | 110.5 million | 128.4 million | -14.0% | | **Net Loss** | 6.2 million | 0.9 million | +554.8% | | **Gross Profit Margin** | 34.7% | 36.9% | -2.2pp | - Future strategic priorities include: - **Strengthening R&D**: Hiring a PhD-level engineer to provide more experimental data validating the efficacy of bio-enzymes in toothpaste products - **Launching New Products**: Introducing high-efficiency toilet bowl cleaner in Q3 to solidify market position in household hygiene products - **Expanding Online Channels**: Leveraging live streaming and e-commerce technologies to increase online sales share, adapting to evolving consumer shopping behaviors[38](index=38&type=chunk) [Analysis of Operating Results](index=18&type=section&id=Analysis%20of%20Operating%20Results) Group revenue decreased by 14.0% to RMB 110.5 million, primarily due to lower oral care product sales, while gross profit declined 19.3% to RMB 38.3 million, leading to an expanded net loss of RMB 6.2 million despite reduced selling and administrative expenses - Revenue decreased by **14.0%**, primarily due to reduced sales of oral care products caused by packaging changes[39](index=39&type=chunk)[40](index=40&type=chunk) - Gross profit margin decreased from **36.9%** in the prior period to **34.7%**, mainly due to the implementation of promotional pricing strategies during the period[42](index=42&type=chunk) - Selling and distribution costs decreased by **9.4%** due to reduced promotional expenses; administrative expenses decreased by **2.5%** due to lower R&D and maintenance costs[43](index=43&type=chunk)[44](index=44&type=chunk) - Net loss increased by **554.8%** from **RMB 0.9 million** in the prior period to **RMB 6.2 million**[46](index=46&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=19&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) As of June 30, 2024, the group's financial position remained stable, with the current ratio improving to 2.77 and the gearing ratio significantly decreasing to 20.2%, indicating reduced financial leverage and sufficient working capital Liquidity and Capital Structure (RMB million) | Indicator | **June 30, 2024** | **December 31, 2023** | | :--- | :--- | :--- | | **Total Shareholders' Equity** | 253.2 million | 263.7 million | | **Bank Balances and Cash** | 55.7 million | 77.9 million | | **Current Ratio** | 2.77 | 2.11 | | **Gearing Ratio** | 20.2% | 32.2% | - As of June 30, 2024, the group had **RMB 5 million** in outstanding bank borrowings, consistent with the end of 2023[47](index=47&type=chunk) [Other Disclosures](index=20&type=section&id=Other%20Disclosures) During the reporting period, the group had no significant acquisitions or disposals, no material contingent liabilities, complied with GEM Listing Rules on corporate governance, and its audit committee reviewed the interim results, with public float remaining compliant - Executive Directors Ms. Li Qiuyan and Mr. Tong Xing hold **59.36%** and **10.69%** of the company's shares, respectively, through their wholly-owned companies[55](index=55&type=chunk) - The company has established an **Audit Committee**, comprising three independent non-executive directors, which has reviewed these interim results[65](index=65&type=chunk) - During the reporting period and up to the date of this announcement, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[61](index=61&type=chunk)