HUIJING HOLDINGS COMPANY LIMITED 滙景控股有限公司 (Incorporated in the Cayman Islands with limited liability) (Incorporated in the Cayman Islands with limited liability) (Stock code: 9968) （於開曼群島註冊成立的有限公司） （Stock Code 股份代號：9968） NOTIFICATION LETTER 通知信函 29 September 2025 Should you have any queries relating to this notification, please call the Branch Share Registrar's telephone hotline at (852) 2980 1333 from 9:00 a.m. to 6:00 p.m., Monday to Friday (excluding public holidays). By Order of the Board Huijing Holdin ...

[Company Information](index=3&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) [Board of Directors and Committees](index=3&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E5%8F%8A%E5%A7%94%E5%93%A1%E6%9C%83) The company's board members changed with Mr. Lun Zhaoming and Mr. Lu Peijun resigning, and Ms. Wang Di appointed as executive director, while committee members remained stable - Executive Director Mr. Lun Zhaoming resigned effective from **January 1, 2025**, and Mr. Lu Peijun resigned effective from **September 8, 2025**[5](index=5&type=chunk) - Ms. Wang Di was appointed as an executive director effective from **May 16, 2025**[5](index=5&type=chunk) - The chairmen and members of the Audit Committee, Nomination Committee, and Remuneration Committee remained unchanged[5](index=5&type=chunk)[6](index=6&type=chunk) [Registered and Principal Places of Business](index=3&type=section&id=%E8%A8%BB%E5%86%8A%E5%8F%8A%E4%B8%BB%E8%A6%81%E7%87%9F%E6%A5%AD%E5%9C%B0%E9%BB%9E) The company's registered office is in the Cayman Islands, with its principal place of business in Dongguan, Guangdong, and Hong Kong - The registered office is located at Cricket Square, Hutchins Drive, Cayman Islands[7](index=7&type=chunk) - The principal place of business and head office in China is located at No. 1 Beihuan Road, Houjie Town, Dongguan City, Guangdong Province[10](index=10&type=chunk) - The principal place of business in Hong Kong is located at Room 1907, 19th Floor, Great Eagle Centre, 23 Harbour Road, Hong Kong[11](index=11&type=chunk) [Professional Advisors and Banks](index=4&type=section&id=%E5%B0%88%E6%A5%AD%E9%A1%A7%E5%95%8F%E5%8F%8A%E9%8A%80%E8%A1%8C) The company's auditor is BCT CPA Limited, legal counsel is Leung & Yentak Solicitors, and principal bankers include Hang Seng Bank - The auditor is BCT CPA Limited[11](index=11&type=chunk) - The legal counsel is Leung & Yentak Solicitors (for Hong Kong law)[12](index=12&type=chunk) - Principal bankers include Hang Seng Bank, Dongguan Rural Commercial Bank Houjie Branch, Industrial and Commercial Bank of China Dongguan Houjie Branch, and China Construction Bank Dongguan Houjie Branch[12](index=12&type=chunk) [Management Discussion and Analysis](index=6&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) [Overall Review](index=6&type=section&id=%E6%95%B4%E4%BD%93%E6%A6%82%E8%A7%88) China's real estate market continued deep adjustments in 2025; the Group maintained its "one core, two wings" strategy focusing on residential development and urban renewal in high-value cities - China's real estate industry continued to experience deep adjustments in **2025**, with the government adhering to the "housing is for living, not for speculation; city-specific policies" policy, aiming for "stable land prices", "stable housing prices", and "stable expectations"[17](index=17&type=chunk)[20](index=20&type=chunk) - The Group maintained its "one main, one core, two wings" business structure, namely, residential development as the main business, urban renewal as the core, and cultural tourism, health, and technology innovation industries as the two wings[17](index=17&type=chunk)[21](index=21&type=chunk) - The Group's strategy is "based in the Greater Bay Area, deeply cultivating Dongguan, and expanding into South China, Central China, and East China and other high-value cities"[17](index=17&type=chunk)[21](index=21&type=chunk) [Business Review](index=6&type=section&id=%E4%B8%9A%E5%8A%A1%E5%9B%9E%E9%A1%B1) The Group's total revenue for H1 2025 was RMB **136.1 million**, up **297%**, driven by property sales, despite significant drops in contracted sales and area 2025 H1 Business Overview | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Total Revenue | 136.1 | 34.3 | +297% | | Property Sales Revenue | 117.8 | 18.213 | +547.0% | | Investment Property Rental Income | 7.1 | - | - | | Contracted Sales Amount | 1.7 | - | -97.7% | | Contracted Sales GFA | 437.1 sq.m. | - | -93.3% | | Total GFA of Properties Sold and Recognized | 23,929 sq.m. | 2,779 sq.m. | +761.0% | | Average Selling Price | 4,924 RMB/square meter | 6,554 RMB/square meter | -24.9% | 2025 H1 Property Sales Regional Distribution | City | Recognized GFA (sq.m.) | % of Total GFA | Average Selling Price (RMB/square meter) | Recognized Revenue (RMB thousand) | % of Recognized Revenue | | :--- | :--- | :--- | :--- | :--- | :--- | | Dongguan | 51 | 0.2% | 2,235 | 114 | 0.1% | | Heyuan | 22,836 | 95.5% | 5,012 | 114,450 | 97.2% | | Hengyang | 152 | 0.6% | 5,697 | 866 | 0.7% | | Changsha | 890 | 3.7% | 2,701 | 2,404 | 2.0% | | **Total** | **23,929** | **100%** | **4,924** | **117,834** | **100%** | - As of **June 30, 2025**, the Group's land reserve was approximately **2,175,219 sq.m.**, including **15** projects and **3** land parcels, distributed across **5** cities in the Greater Bay Area, Yangtze River Delta urban cluster, and Central Yangtze River urban cluster[36](index=36&type=chunk)[38](index=38&type=chunk) [Financial Review](index=12&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%B1) H1 2025 total revenue increased by **297%** to RMB **136.1 million**, but gross profit margin fell to **13.8%**, expanding net loss to RMB **240.9 million** due to product mix and exchange losses 2025 H1 Key Financial Performance | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Total Revenue | 136.1 | 34.3 | +297% | | Gross Profit | 18.8 | 18.8 | +0.1% | | Gross Profit Margin | 13.8% | 54.8% | -41.0 percentage points | | Loss for the Period | 240.9 | 228.1 | +5.6% | | Loss Attributable to Owners of the Parent | 250.8 | 227.8 | +10.1% | | Other Income and Gains | 0.7 | 5.9 | -88.1% | | Selling and Distribution Expenses | 1.5 | 6.6 | -77.3% | | Administrative Expenses | 28.9 | 51.8 | -44.2% | | Other Expenses | 77.3 | 19.0 | +306.8% | | Share of Loss of Joint Ventures | 12.0 | 5.9 | +103.4% | | Finance Costs | 134.3 | 149.4 | -10.1% | | Income Tax Expense | 30.8 | 1.7 | +1711.8% | - The decrease in gross profit margin was primarily due to changes in the product and geographical mix of properties delivered in **2025** and the relatively lower average selling price of delivered properties[54](index=54&type=chunk)[58](index=58&type=chunk) - The decrease in other income and gains was primarily due to a decrease in interest income from joint ventures of approximately RMB **3.7 million** and a decrease in exchange gains of approximately RMB **1.5 million**[61](index=61&type=chunk)[66](index=66&type=chunk) - The increase in other expenses was primarily due to an increase in exchange losses of approximately RMB **32.5 million**[65](index=65&type=chunk)[70](index=70&type=chunk) - The increase in income tax expense was primarily due to a significant decrease in land appreciation tax provision leading to an increase in deferred income tax of approximately RMB **24.2 million**, and an increase in land appreciation tax accrual due to increased property sales of

汇景控股(09968.HK)：卢沛军辞任执行董事 汇景控股(09968.HK)：中期母公司拥有人应占亏损为2.51亿 元 格隆汇9月8日丨汇景控股(09968.HK)宣布，因须投入更多时间于彼之其他个人承担，卢沛军向董事会辞 任公司执行董事，自2025年9月8日起生效。 相关事件 ...

HUIJING HOLDINGS COMPANY LIMITED 滙景控 股有限公司 （於開曼群島註冊成立的有限公司） （「本公司」） （股份代號：9968） 董事會已設立三個常務董事委員會。下表提供若干董事會成員於該等委員會所 擔任職務的資料： | | 董事委員會 | 審核委員會 | 薪酬委員會 | 提名委員會 | | --- | --- | --- | --- | --- | | 董 事 | | | | | | 倫瑞祥先生 | （主席） | | M | C | | 陳健民先生 | | C | | | | 歐寧馨女士 | | M | M | M | | 陳桂林先生 | | M | C | M | 附註： 董事名單與其角色及職能 本公司董事會（「董事會」）成員載列如下： 非執行董事： 倫瑞祥先 生 （主席） 執行董事： 羅成煜先生 王迪女士 獨立非執行董事： 陳健民先生 歐寧馨女士 陳桂林先生 C： 相關委員會主席 M： 相關委員會成員 香港，2025年9月8日 ...

滙景控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：9968） 執行董事辭任 滙景控股有限公司（「本公司」）董事會（「董事會」）謹此宣布，因須投入更多時間 於彼之其他個人承擔，盧沛軍先生（「盧先生」）向董事會辭任本公司執行董事，自 2025年9月8日起生效。 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或 任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 HUIJING HOLDINGS COMPANY LIMITED 董事會謹此對盧先生在其任內對本公司作出之寶貴貢獻表示感謝。 承董事會命 滙景控股有限公司 主席兼非執行董事 倫瑞祥 香港，2025年9月8日 於本公告日期，董事會包括執行董事羅成煜先生及王迪女士，非執行董事倫瑞祥先 生，以及獨立非執行董事陳健民先生、歐寧馨女士及陳桂林先生。 盧先生已確認，彼與董事會並無意見分歧，亦概無與彼的辭任有關的事宜需敦請香港 聯合交易所有限公司及本公司股東垂注。 ...

2025 年 9 月 5 日舉行之股東週年大會之投票表決結果 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 HUIJINGHOLDINGSCOMPANYLIMITED 滙 景 控 股 有 限 公 司 ( 於開曼群島註冊成立之有限公司 ) (股份代號:9968) 滙景控股有限公司 主席兼非執行董事 倫瑞祥 茲提述滙景控股有限公司（「本公司」）日期均為 2025 年 8 月 5 日之通函（「通函」）及股東週 年大會（「股東週年大會」）通告（「股東週年大會通告」）。除另行界定者外，本公告所用詞彙 與該等通函及股東週年大會通告所界定者具相同涵義。於 2025 年 9 月 5 日舉行之股東週年大 會上，所有列載於股東週年大會通告內的決議案均以一股一票方式進行投票表決。投票表決 結果如下： | | 普通決議案 | 票數 | (概約%) | | --- | --- | --- | --- | | | | 贊成 | 反對 | | 1. | 省覽及採納本公司及其附屬 ...

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8月31日 | 狀態: | 新提交 | | --- | --- | --- | --- | | 致：香港交易及結算所有限公司 | | | | | 公司名稱: | 滙景控股有限公司 | | | | 呈交日期: | 2025年9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) | 09968 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | HKD | | 0.01 HKD | | 100,000,000 | | 增加 / 減少 (-) | | | | | | HKD | | | | 本月底結存 | | | 10 ...

Group 1 - The company reported a revenue of 136 million RMB for the six months ending June 30, 2025, representing a year-on-year increase of 297.01% [1] - The loss attributable to shareholders was 251 million RMB, which widened by 10.13% compared to the previous year [1] - The basic loss per share was 0.05 RMB [1]

Group 1 - The company reported a revenue of RMB 136 million for the six months ending June 30, 2025, representing a year-on-year increase of 297.0% [1] - The gross profit was RMB 18.815 million, which remained relatively stable compared to the previous year [1] - The loss attributable to the company's owners was RMB 251 million, compared to a loss of RMB 228 million in the same period last year [1] - The basic loss per share was RMB 0.05 [1]

[Interim Results Summary](index=1&type=section&id=2025%E5%B9%B4%20%E4%B8%AD%20%E6%9C%9F%20%E6%A5%AD%20%E7%B8%BE%20%E6%91%98%20%E8%A6%81) The company's interim performance for 2025 shows a significant increase in revenue but also an expanded loss, with a sharp decline in contracted sales | Metric | June 30, 2025 (Million RMB) | June 30, 2024 (Million RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Contracted Sales | 1.7 | 73.9 (Estimated) | -97.7% | | Revenue | 136.1 | 34.3 (Estimated) | +297.0% | | Gross Profit | 18.8 | 18.8 (Estimated) | +0.1% | | Loss | 240.9 | 228.1 (Estimated) | +5.6% | | Loss Attributable to Owners of the Parent | 250.8 | 227.8 (Estimated) | +10.1% | | Cash and Bank Balances | 27.9 | N/A | N/A | | Interim Dividend | Not Recommended | Nil | N/A | [Interim Condensed Consolidated Financial Statements](index=2&type=section&id=%E4%B8%AD%20%E6%9C%9F%20%E7%B0%A1%20%E6%98%8E%20%E7%B6%9C%20%E5%90%88%20%E8%B2%A1%20%E5%8B%99%20%E5%A0%B1%20%E8%A1%A8) This section presents the company's financial position, performance, and cash flows for the interim period, highlighting key financial metrics and changes [Interim Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=%E4%B8%AD%20%E6%9C%9F%20%E7%B0%A1%20%E6%98%8E%20%E7%B6%9C%20%E5%90%88%20%E6%90%8D%20%E7%9B%8A%20%E8%A1%A8) For the six months ended June 30, 2025, the company's revenue significantly increased by 297% to RMB 136.1 million, but cost of sales also rose, keeping gross profit flat while loss expanded by 5.6% to RMB 240.9 million due to higher income tax and other expenses | Metric | June 30, 2025 (Thousand RMB) | June 30, 2024 (Thousand RMB) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 136,144 | 34,292 | +297.0% | | Cost of Sales | (117,329) | (15,495) | +657.2% | | Gross Profit | 18,815 | 18,797 | +0.1% | | Other Income and Gains | 744 | 5,919 | -87.4% | | Selling and Distribution Expenses | (1,466) | (6,598) | -77.8% | | Administrative Expenses | (28,900) | (51,834) | -44.2% | | Net Fair Value Loss on Investment Properties | (500) | (3,044) | -83.6% | | Reversal/(Impairment) of Trade and Other Receivables | 49,305 | (932) | N/A | | Write-down of Inventories to Net Realizable Value | (23,452) | (14,823) | +58.2% | | Other Expenses | (77,340) | (19,023) | +306.6% | | Remeasurement of Financial Guarantee Contracts | (946) | 374 | N/A | | Finance Costs | (134,329) | (149,413) | -10.1% | | Share of Loss of Joint Ventures | (12,032) | (5,857) | +105.4% | | Loss Before Tax | (210,101) | (226,434) | -7.2% | | Income Tax Expense | (30,840) | (1,663) | +1754.5% | | Loss for the Period | (240,941) | (228,097) | +5.6% | | Loss Attributable to Owners of the Parent | (250,848) | (227,765) | +10.1% | | Basic and Diluted Loss Per Share (RMB) | (0.05) | (0.04) | +25.0% | [Interim Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=%E4%B8%AD%20%E6%9C%9F%20%E7%B0%A1%20%E6%98%8E%20%E7%B6%9C%20%E5%90%88%20%E5%85%A8%20%E9%9D%A2%20%E6%94%B6%20%E7%9B%8A%20%E8%A1%A8) For the six months ended June 30, 2025, the company reported a loss of RMB 240.9 million, but total comprehensive loss for the period significantly narrowed by 27.3% year-on-year to RMB 203.9 million due to positive foreign exchange differences | Metric | June 30, 2025 (Thousand RMB) | June 30, 2024 (Thousand RMB) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Loss for the Period | (240,941) | (228,097) | +5.6% | | Exchange Differences on Translation of Financial Statements of the Company | 11,803 | 7,302 | +61.6% | | Exchange Differences on Translation of Financial Statements of Subsidiaries | 25,287 | (59,628) | N/A | | Other Comprehensive Loss for the Period | 37,090 | (52,326) | N/A | | Total Comprehensive Loss for the Period | (203,851) | (280,423) | -27.3% | | Total Comprehensive Loss Attributable to Owners of the Parent | (213,758) | (280,091) | -23.7% | | Total Comprehensive Income/(Loss) Attributable to Non-controlling Interests | 9,907 | (332) | N/A | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E4%B8%AD%20%E6%9C%9F%20%E7%B0%A1%20%E6%98%8E%20%E7%B6%9C%20%E5%90%88%20%E8%B2%A1%20%E5%8B%99%20%E7%8B%80%20%E6%B3%81%20%E8%A1%A8) As of June 30, 2025, total non-current assets increased due to land held for development, but total current assets and liabilities decreased, leading to a further expansion of net current liabilities to RMB 4,421.8 million, indicating continued liquidity pressure | Metric | June 30, 2025 (Thousand RMB) | December 31, 2024 (Thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | **Non-current Assets** | | | | | Property, Plant and Equipment | 57,424 | 57,969 | -0.9% | | Investment Properties | 1,393,800 | 1,394,300 | -0.0% | | Land Held for Development for Sale | 2,081,079 | 1,809,295 | +15.0% | | Total Non-current Assets | 3,880,084 | 3,645,378 | +6.4% | | **Current Assets** | | | | | Properties Under Development | 1,858,737 | 3,113,417 | -40.3% | | Completed Properties Held for Sale | 1,049,686 | 915,949 | +14.6% | | Cash and Bank Balances | 27,867 | 37,179 | -25.0% | | Total Current Assets | 5,219,091 | 6,505,013 | -19.7% | | **Current Liabilities** | | | | | Trade Payables | 1,067,099 | 1,288,552 | -17.2% | | Interest-bearing Bank and Other Borrowings | 3,884,697 | 4,134,446 | -6.0% | | Total Current Liabilities | 9,640,903 | 10,424,641 | -7.5% | | **Net Position** | | | | | Net Current Liabilities | (4,421,812) | (3,919,628) | +12.8% | | Total Deficit | (601,727) | (334,475) | +79.9% | [Notes to the Unaudited Interim Condensed Consolidated Financial Information](index=6&type=section&id=%E6%9C%AA%20%E7%B6%93%20%E5%AF%A9%20%E6%A0%B8%20%E4%B8%AD%20%E6%9C%9F%20%E7%B0%A1%20%E6%98%8E%20%E7%B6%9C%20%E5%90%88%20%E8%B2%A1%20%E5%8B%99%20%E8%B3%87%20%E6%96%99%20%E9%99%84%20%E8%A8%BB) This section provides detailed explanatory notes to the interim condensed consolidated financial statements, covering company information, accounting policies, and specific financial items [1. Company Information](index=6&type=section&id=1.%20%E5%85%AC%20%E5%8F%B8%20%E8%B3%87%20%E6%96%99) The company is incorporated in the Cayman Islands, listed on the HKEX, primarily engaged in property development and investment in China, and controlled by Mr. Lun Shui Cheung and Ms. Chan Hau Wan - The company primarily engages in property development and investment business in China[8](index=8&type=chunk) - The ultimate and direct holding company is HEC Capital Limited, controlled by Mr. Lun Shui Cheung and his spouse Ms. Chan Hau Wan[8](index=8&type=chunk) [2.1 Basis of Presentation](index=6&type=section&id=2.1%20%E5%91%88%20%E5%88%97%20%E5%9F%BA%20%E6%BA%96) The company faces significant going concern uncertainties, including a net loss of RMB 240.9 million, net current liabilities of RMB 4,421.8 million, and approximately RMB 5,870.1 million in defaulted borrowings, despite management's mitigation efforts - As of June 30, 2025, the company incurred a net loss of approximately **RMB 240,941,000** and its current liabilities exceeded current assets by approximately **RMB 4,421,812,000**[9](index=9&type=chunk) - Interest-bearing bank and other borrowings and senior notes totaling approximately **RMB 5,870,125,000** were in default or cross-default and remained outstanding as of the financial statements approval date, constituting a material uncertainty regarding going concern[9](index=9&type=chunk) - The company has implemented measures to alleviate liquidity pressure, including accelerating property sales (including price reductions), engaging with the government for financial support, optimizing operations (reducing headcount, internalizing outsourced processes), and actively negotiating with lenders for loan renewals and refinancing[10](index=10&type=chunk)[13](index=13&type=chunk) [2.2 Basis of Preparation](index=7&type=section&id=2.2%20%E7%B7%A8%20%E8%A3%BD%20%E5%9F%BA%20%E6%BA%96) The interim condensed consolidated financial statements are prepared in accordance with HKAS 34 and Appendix D2 of the HKEX Listing Rules, using the historical cost convention and presented in RMB - The financial statements are prepared in accordance with HKAS 34 and Appendix D2 of the HKEX Listing Rules[12](index=12&type=chunk) - The financial statements are prepared on a historical cost basis and presented in RMB, with all amounts rounded to the nearest thousand[15](index=15&type=chunk) [2.3 Application of Hong Kong Financial Reporting Standards (Amendments)](index=8&type=section&id=2.3%20%E6%87%89%20%E7%94%A8%20%E9%A6%99%20%E6%B8%AF%20%E8%B2%A1%20%E5%8B%99%20%E5%A0%B1%20%E5%91%8A%20%E6%BA%96%20%E5%89%87%EF%BC%88%E4%BF%AE%20%E8%A8%82%20%E6%9C%AC%EF%BC%89) The newly adopted and amended HKFRSs, including HKAS 21 (Amendments) "Lack of Exchangeability," have no material impact on the company's financial position, performance, or disclosures for the current period - New and amended Hong Kong Financial Reporting Standards (such as HKAS 21 (Amendments) "Lack of Exchangeability") have no material impact on the Group's financial position and performance[16](index=16&type=chunk) [3. Operating Segment Information](index=8&type=section&id=3.%20%E7%B6%93%20%E7%87%9F%20%E5%88%86%20%E9%83%A8%20%E8%B3%87%20%E6%96%99) The company operates in a single segment, property development and investment, with all revenue and most non-current assets derived from mainland China, thus no separate operating or geographical segment information is presented - The Group primarily operates in a single operating segment, which is property development and investment[17](index=17&type=chunk) - The Group's revenue and over **90%** of its non-current assets are derived from mainland China, thus no geographical information is presented[18](index=18&type=chunk) - For the six months ended June 30, 2025, no single external customer accounted for **10%** or more of the Group's total revenue[19](index=19&type=chunk) [4. Revenue, Other Income and Gains](index=9&type=section&id=4.%20%E6%94%B6%20%E7%9B%8A%E3%80%81%E5%85%B6%20%E4%BB%96%20%E6%94%B6%20%E5%85%A5%20%E5%8F%8A%20%E6%94%B6%20%E7%9B%8A) For the six months ended June 30, 2025, the company's revenue, primarily from property sales, significantly increased by 297% to RMB 136.1 million, while other income and gains decreased by 87.4% to RMB 0.7 million due to reduced interest and exchange gains | Revenue Source | June 30, 2025 (Thousand RMB) | June 30, 2024 (Thousand RMB) | | :--- | :--- | :--- | | Property Sales | 117,834 | 18,213 | | Rental Income | 18,310 | 16,079 | | **Total Revenue** | **136,144** | **34,292** | | Other Income and Gains Source | June 30, 2025 (Thousand RMB) | June 30, 2024 (Thousand RMB) | | :--- | :--- | :--- | | Bank Interest Income | 176 | 115 | | Other Rental Income | – | 559 | | Net Exchange Differences | – | 1,508 | | Others | 568 | 3,737 | | **Total Other Income and Gains** | **744** | **5,919** | [5. Finance Costs](index=10&type=section&id=5.%20%E8%B2%A1%20%E5%8B%99%20%E6%88%90%20%E6%9C%AC) For the six months ended June 30, 2025, the company's finance costs decreased by 10.1% to RMB 134.3 million, primarily due to increased capitalized interest offsetting higher interest on bank and other borrowings | Finance Cost Item | June 30, 2025 (Thousand RMB) | June 30, 2024 (Thousand RMB) | | :--- | :--- | :--- | | Interest on Lease Liabilities | 19 | 48 | | Interest on Bank and Other Borrowings | 143,937 | 339,496 | | Interest on Senior Notes | 57,423 | 57,139 | | **Total** | **201,379** | **396,683** | | Less: Interest Capitalized | (67,050) | (247,270) | | **Net Finance Costs** | **134,329** | **149,413** | [6. Loss Before Tax](index=10&type=section&id=6.%20%E9%99%A4%20%E7%A8%85%20%E5%89%8D%20%E8%99%A7%20%E6%90%8D) For the six months ended June 30, 2025, the company's loss before tax narrowed by 7.2% to RMB 210.1 million, primarily due to a significant increase in cost of properties sold, partially offset by a net exchange gain | Item | June 30, 2025 (Thousand RMB) | June 30, 2024 (Thousand RMB) | | :--- | :--- | :--- | | Cost of Properties Sold | 115,810 | 13,586 | | Direct Operating Expenses from Investment Properties Generating Rental Income | 1,519 | 1,908 | | Depreciation of Property, Plant and Equipment | 2,646 | 3,386 | | Depreciation of Right-of-use Assets | 564 | 1,484 | | Amortization of Intangible Assets | 677 | 683 | | Staff Costs (including Directors' Emoluments) | 13,416 | 21,751 | | Net Exchange Differences | 32,468 | (1,508) | [7. Income Tax](index=11&type=section&id=7.%20%E6%89%80%20%E5%BE%97%20%E7%A8%85) For the six months ended June 30, 2025, the company's income tax expense significantly increased by 1754.5% to RMB 30.8 million, mainly due to higher deferred income tax and increased land appreciation tax provisions from property sales - Entities registered in the Cayman Islands and British Virgin Islands are not subject to income tax, Hong Kong has no assessable profits, and mainland China subsidiaries are subject to a **25%** corporate income tax rate[25](index=25&type=chunk) - PRC Land Appreciation Tax is levied at progressive rates from **30%** to **60%** on the appreciation of land value[26](index=26&type=chunk) | Income Tax Item | June 30, 2025 (Thousand RMB) | June 30, 2024 (Thousand RMB) | | :--- | :--- | :--- | | Current: PRC Enterprise Income Tax | 356 | 2 | | Current: PRC Land Appreciation Tax | 5,562 | 927 | | Deferred | 24,922 | 734 | | **Total Tax Expense for the Period** | **30,840** | **1,663** | [8. Loss Per Share Attributable to Owners of the Parent](index=11&type=section&id=8.%20%E6%AF%8D%20%E5%85%AC%20%E5%8F%B8%20%E6%93%81%20%E6%9C%89%20%E4%BA%BA%20%E6%87%89%20%E4%BD%94%20%E6%AF%8F%20%E8%82%A1%20%E8%99%A7%20%E6%90%8D) For the six months ended June 30, 2025, the company's basic and diluted loss per share increased to RMB 0.05 from RMB 0.04 in the prior period, primarily due to the increased loss attributable to owners of the parent | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Loss Attributable to Owners of the Parent for Basic and Diluted Loss Per Share (Thousand RMB) | 250,848 | 227,765 | | Weighted Average Number of Ordinary Shares in Issue During the Period (Thousand Shares) | 5,254,000 | 5,254,000 | | Basic and Diluted Loss Per Share (RMB) | (0.05) | (0.04) | - Diluted loss per share is the same as basic loss per share because the exercise price of share options was higher than the average market price of shares[28](index=28&type=chunk) [9. Trade Receivables](index=12&type=section&id=9.%20%E8%B2%A8%20%E6%98%93%20%E6%87%89%20%E6%94%B6%20%E8%B3%A6%20%E6%AC%BE) As of June 30, 2025, the company's trade receivables increased to RMB 20.4 million from RMB 13.4 million as of December 31, 2024 | Trade Receivables | June 30, 2025 (Thousand RMB) | December 31, 2024 (Thousand RMB) | | :--- | :--- | :--- | | Trade Receivables | 20,376 | 13,377 | [10. Trade Payables](index=12&type=section&id=10.%20%E8%B2%A8%20%E6%98%93%20%E6%87%89%20%E4%BB%98%20%E8%B3%87%20%E6%AC%BE) As of June 30, 2025, the company's total trade payables decreased to RMB 1,067.1 million from RMB 1,288.6 million as of December 31, 2024, with the majority due within one year | Ageing | June 30, 2025 (Thousand RMB) | December 31, 2024 (Thousand RMB) | | :--- | :--- | :--- | | Within 1 year | 486,871 | 529,145 | | 1 to 2 years | 242,720 | 385,752 | | Over 2 years | 337,508 | 373,655 | | **Total** | **1,067,099** | **1,288,552** | [11. Interim Dividend](index=12&type=section&id=11.%20%E4%B8%AD%20%E6%9C%9F%20%E8%82%A1%20%E6%81%AF) The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025, consistent with the prior period - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025[32](index=32&type=chunk) [Management Discussion and Analysis](index=13&type=section&id=%E7%AE%A1%20%E7%90%86%20%E5%B1%A4%20%E4%B9%8B%20%E8%A8%8E%20%E8%AB%96%20%E5%8F%8A%20%E5%88%86%20%E6%9E%90) This section provides an overview of the company's business performance, financial results, liquidity, and future outlook, along with key operational and financial metrics [Overall Review](index=13&type=section&id=%E6%95%B4%20%E9%AB%94%20%E6%A6%82%20%E8%A6%BD) China's property market continued its deep adjustment in 2025 under the "houses are for living, not for speculation" policy, while the company focused on its "one core, two wings" strategy in high-value cities - China's real estate market continued to experience deep adjustments in 2025, with the government maintaining its policy of "houses are for living, not for speculation, and policies vary by city"[33](index=33&type=chunk) - The company's strategy is to "base itself in the Greater Bay Area, deeply cultivate Dongguan, and expand into high-value cities in South China, Central China, and East China," with a business structure of "residential development as the main business, urban renewal as the core, and cultural tourism, health, and scientific innovation industries as two wings"[33](index=33&type=chunk) [Business Review](index=13&type=section&id=%E6%A5%AD%20%E5%8B%99%20%E5%9B%9E%20%E9%A1%A7) The company's total revenue increased by 297% to RMB 136.1 million, primarily from property sales, despite a significant decline in contracted sales and average selling price, while actively managing its land bank and urban redevelopment projects - For the six months ended June 30, 2025, the company's total revenue was approximately **RMB 136.1 million**, an increase of approximately **297%** year-on-year, primarily from property sales[34](index=34&type=chunk) [Contracted Sales](index=13&type=section&id=%E5%90%88%20%E7%B4%84%20%E9%8A%B7%20%E5%94%AE) For the six months ended June 30, 2025, the company's contracted sales, including joint ventures, decreased by 97.7% to approximately RMB 1.7 million, with contracted sales GFA down by 93.3% to 437.1 square meters | Metric | June 30, 2025 | June 30, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Contracted Sales (Million RMB) | 1.7 | 73.9 | -97.7% | | Contracted Sales GFA (sq.m.) | 437.1 | 6,524.0 (Estimated) | -93.3% | [Property Sales](index=14&type=section&id=%E7%89%A9%20%E6%A5%AD%20%E9%8A%B7%20%E5%94%AE) For the six months ended June 30, 2025, property sales revenue increased by 547.0% to approximately RMB 117.8 million, accounting for 86.6% of total revenue, with confirmed GFA sold increasing by 761.0% but average selling price decreasing by 24.9% | Metric | June 30, 2025 | June 30, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Property Sales Revenue (Million RMB) | 117.8 | 18.2 (Estimated) | +547.0% | | Total GFA of Properties Sold Recognized (sq.m.) | 23,929 | 2,779 (Estimated) | +761.0% | | Average Selling Price (RMB/sq.m.) | 4,924 | 6,554 (Estimated) | -24.9% | | City | GFA Recognized (sq.m.) | % of Total GFA | Average Selling Price (RMB/sq.m.) | Revenue (Thousand RMB) | % of Total Revenue | | :--- | :--- | :--- | :--- | :--- | :--- | | Dongguan | 51 | 0.2% | 2,235 | 114 | 0.1% | | Heyuan | 22,836 | 95.5% | 5,012 | 114,450 | 97.2% | | Hengyang | 152 | 0.6% | 5,697 | 866 | 0.7% | | Changsha | 890 | 3.7% | 2,701 | 2,404 | 2.0% | | **Total** | **23,929** | **100%** | **4,924** | **117,834** | **100%** | [Projects and Land Parcels](index=15&type=section&id=%E9%A0%85%20%E7%9B%AE%20%E5%8F%8A%20%E5%9C%B0%20%E5%A1%8A) The company holds various property projects and land parcels in Dongguan, Heyuan, Hefei, Hengyang, and Changsha, with a total GFA sold of 2,054,214 sqm, GFA for sale of 536,916 sqm, and investment properties of 125,230 sqm - The company owns multiple projects in Dongguan, Heyuan, Hefei, Hengyang, and Changsha, with a total GFA sold of **2,054,214 sq.m.** and GFA for sale of **536,916 sq.m.**[38](index=38&type=chunk) [Investment Properties](index=16&type=section&id=%E6%8A%95%20%E8%B3%87%20%E7%89%A9%20%E6%A5%AD) As of June 30, 2025, the company owned investment properties with a total GFA of approximately 125,230 sqm (leasable area of approximately 38,013 sqm), generating rental income of approximately RMB 7.1 million for the period - As of June 30, 2025, the company owned investment properties with a total GFA of approximately **125,230 sq.m.** and a leasable area of approximately **38,013 sq.m.**[39](index=39&type=chunk) - Rental income for the six months ended June 30, 2025, was approximately **RMB 7.1 million**[39](index=39&type=chunk) [Land Bank](index=16&type=section&id=%E5%9C%9F%20%E5%9C%B0%20%E5%84%B2%20%E5%82%99) As of June 30, 2025, the company's land bank comprised approximately 2,175,219 sqm across 15 projects and 3 land parcels in 5 cities, primarily in Hengyang and Heyuan - As of June 30, 2025, the company's land bank was approximately **2,175,219 sq.m.**, comprising **15 projects** and **3 land parcels**[40](index=40&type=chunk) | Location | Total Land Bank GFA (sq.m.) | % of Total Land Bank GFA | | :--- | :--- | :--- | | Dongguan | 36,523 | 1.7% | | Heyuan | 795,889 | 36.6% | | Hefei | 64,648 | 3.0% | | Hengyang | 1,190,284 | 54.7% | | Changsha | 87,875 | 4.0% | | **Total** | **2,175,219** | **100%** | ["Three Olds" Redevelopment Projects](index=17&type=section&id=%E4%B8%89%20%E8%88%8A%20%E6%94%B9%20%E9%80%A0%20%E9%A0%85%20%E7%9B%AE) The company has multiple "Three Olds" redevelopment projects in Dongguan City, totaling 2,229,500 sqm, with the Zhangmutou Baoshan area approved and Humen Xinwan area suspended due to planning changes - The company has "Three Olds" redevelopment projects in Dongguan City with a total site area of **2,229,500 sq.m.**[44](index=44&type=chunk)[45](index=45&type=chunk) - The Zhangmutou Baoshan area has received approval, with an estimated GFA of **367,222 sq.m.**[45](index=45&type=chunk) - The Humen Xinwan area's urban renewal process has been suspended due to Guangdong Province's spatial planning adjustments[45](index=45&type=chunk) [Financial Review](index=18&type=section&id=%E8%B2%A1%20%E5%8B%99%20%E5%9B%9E%20%E9%A1%A7) For the six months ended June 30, 2025, total revenue increased by 297% to RMB 136.1 million, but gross profit margin significantly dropped to 13.8% from 54.8%, leading to a 5.6% increase in loss to RMB 240.9 million, impacted by lower margins, reduced other income, higher other expenses (exchange losses), and increased income tax - For the six months ended June 30, 2025, total revenue was approximately **RMB 136.1 million**, an increase of approximately **297%** year-on-year[46](index=46&type=chunk) - Loss for the period was approximately **RMB 240.9 million**, an increase of **5.6%** year-on-year[46](index=46&type=chunk) [Overall Performance](index=18&type=section&id=%E6%95%B4%20%E9%AB%94%20%E8%A1%A8%20%E7%8F%BE) For the six months ended June 30, 2025, total revenue increased by 297%, gross profit remained flat, but both loss for the period and loss attributable to owners of the parent increased | Metric | June 30, 2025 (Million RMB) | June 30, 2024 (Million RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 136.1 | 34.3 | +297.0% | | Gross Profit Amount | 18.8 | 18.8 | +0.1% | | Loss for the Period | 240.9 | 228.1 | +5.6% | | Loss Attributable to Owners of the Parent | 250.8 | 227.8 | +10.1% | [Revenue](index=18&type=section&id=%E6%94%B6%20%E7%9B%8A) Revenue increased by 297% to approximately RMB 136.1 million, driven by a 761.0% increase in GFA delivered to 23,929 sqm, despite a 24.9% decrease in average selling price due to changes in property mix - Revenue increased by **297%** to **RMB 136.1 million**[47](index=47&type=chunk) - GFA delivered increased by **761.0%** to **23,929 sq.m.**[47](index=47&type=chunk) - Average selling price decreased by **24.9%** to **RMB 4,924 per sq.m.**, primarily due to changes in the product mix of properties delivered[47](index=47&type=chunk) [Cost of Sales](index=18&type=section&id=%E9%8A%B7%20%E5%94%AE%20%E6%88%90%20%E6%9C%AC) Cost of sales increased from approximately RMB 15.5 million to RMB 117.3 million, primarily due to a significant increase in GFA delivered | Metric | June 30, 2025 (Million RMB) | June 30, 2024 (Million RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Cost of Sales | 117.3 | 15.5 | +657.2% | - The increase in cost of sales was primarily due to a significant increase in GFA delivered[48](index=48&type=chunk) [Gross Profit and Gross Profit Margin](index=18&type=section&id=%E6%AF%9B%20%E5%88%A9%20%E5%8F%8A%20%E6%AF%9B%20%E5%88%A9%20%E7%8E%87) Gross profit remained flat at approximately RMB 18.8 million, but gross profit margin significantly decreased from 54.8% to 13.8%, mainly due to changes in product and geographical mix and lower average selling prices of properties delivered in 2025 | Metric | June 30, 2025 (Million RMB) | June 30, 2024 (Million RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 18.8 | 18.8 | +0.1% | | Gross Profit Margin | 13.8% | 54.8% | -41.0 percentage points | - The decrease in gross profit margin was primarily due to changes in the product and geographical mix of properties delivered in 2025 and relatively lower average selling prices[49](index=49&type=chunk) [Other Income and Gains](index=19&type=section&id=%E5%85%B6%20%E4%BB%96%20%E6%94%B6%20%E5%85%A5%20%E5%8F%8A%20%E6%94%B6%20%E7%9B%8A) Other income and gains decreased from approximately RMB 5.9 million to RMB 0.7 million, primarily due to a reduction in interest income from joint ventures and foreign exchange gains | Metric | June 30, 2025 (Million RMB) | June 30, 2024 (Million RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Other Income and Gains | 0.7 | 5.9 | -87.4% | - The decrease was primarily due to a reduction in interest income from joint ventures of approximately **RMB 3.7 million** and a decrease in foreign exchange gains of approximately **RMB 1.5 million**[50](index=50&type=chunk) [Fair Value Loss on Investment Properties](index=19&type=section&id=%E6%8A%95%20%E8%B3%87%20%E7%89%A9%20%E6%A5%AD%20%E5%85%AC%20%E5%B9%B3%20%E5%80%BC%20%E8%99%A7%20%E6%90%8D) Fair value loss on investment properties decreased from approximately RMB 3.0 million to RMB 0.5 million, primarily due to market valuation fluctuations | Metric | June 30, 2025 (Million RMB) | June 30, 2024 (Million RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Fair Value Loss on Investment Properties | 0.5 | 3.0 | -83.3% | - The decrease in loss was primarily due to market valuation fluctuations[51](index=51&type=chunk) [Selling and Distribution Expenses](index=19&type=section&id=%E9%8A%B7%20%E5%94%AE%20%E5%8F%8A%20%E5%88%86%20%E9%8A%B7%20%E9%96%8B%20%E6%94%AF) Selling and distribution expenses decreased from approximately RMB 6.6 million to RMB 1.5 million, mainly due to reduced marketing and promotion expenses and office expenses | Metric | June 30, 2025 (Million RMB) | June 30, 2024 (Million RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 1.5 | 6.6 | -77.3% | - The decrease was primarily due to a reduction in marketing and promotion expenses of approximately **RMB 4.7 million** and a decrease in office expenses of approximately **RMB 0.9 million**[52](index=52&type=chunk) [Administrative Expenses](index=19&type=section&id=%E8%A1%8C%20%E6%94%BF%20%E9%96%8B%20%E6%94%AF) Administrative expenses decreased from approximately RMB 51.8 million to RMB 28.9 million, primarily due to reduced employee salaries, taxes, and intermediary service fees | Metric | June 30, 2025 (Million RMB) | June 30, 2024 (Million RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 28.9 | 51.8 | -44.2% | - The decrease was primarily due to a reduction in employee salary expenses of approximately **RMB 8.7 million**, a decrease in taxes and fees of approximately **RMB 4.7 million**, and a decrease in intermediary service fees and business entertainment expenses of approximately **RMB 9.6 million**[53](index=53&type=chunk) [Other Expenses](index=19&type=section&id=%E5%85%B6%20%E4%BB%96%20%E9%96%8B%20%E6%94%AF) Other expenses increased from approximately RMB 19.0 million to RMB 77.3 million, primarily due to an increase in foreign exchange losses | Metric | June 30, 2025 (Million RMB) | June 30, 2024 (Million RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Other Expenses | 77.3 | 19.0 | +306.8% | - The increase was primarily due to an increase in foreign exchange losses of approximately **RMB 32.5 million**[54](index=54&type=chunk) [Share of Loss of Joint Ventures](index=19&type=section&id=%E5%88%86%20%E4%BD%94%20%E5%90%88%20%E8%B3%87%20%E4%BC%81%20%E6%A5%AD%20%E8%99%A7%20%E6%90%8D) Share of loss of joint ventures increased from approximately RMB 5.9 million to RMB 12.0 million, primarily due to increased losses from a Hunan joint venture | Metric | June 30, 2025 (Million RMB) | June 30, 2024 (Million RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Share of Loss of Joint Ventures | 12.0 | 5.9 | +103.4% | - The increase was primarily due to increased losses from the Hunan joint venture in 2025[55](index=55&type=chunk) [Finance Costs](index=20&type=section&id=%E8%B2%A1%20%E5%8B%99%20%E6%88%90%20%E6%9C%AC) Finance costs decreased from approximately RMB 149.4 million to RMB 134.3 million, primarily due to a reduction in loan balances | Metric | June 30, 2025 (Million RMB) | June 30, 2024 (Million RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Finance Costs | 134.3 | 149.4 | -10.1% | - The decrease was primarily due to a reduction in loan balances[56](index=56&type=chunk) [Income Tax Expense](index=20&type=section&id=%E6%89%80%20%E5%BE%97%20%E7%A8%85%20%E9%96%8B%20%E6%94%AF) Income tax expense significantly increased from approximately RMB 1.7 million to RMB 30.8 million, primarily due to an increase in deferred income tax and higher land appreciation tax provisions from increased property sales | Metric | June 30, 2025 (Million RMB) | June 30, 2024 (Million RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Income Tax Expense | 30.8 | 1.7 | +1711.8% | - The increase was primarily due to an increase in deferred income tax of approximately **RMB 24.2 million** and an increase in land appreciation tax provisions of approximately **RMB 4.6 million** due to increased property sales[57](index=57&type=chunk) [Net Loss and Net Loss Margin](index=20&type=section&id=%E6%B7%A8%20%E8%99%A7%20%E6%90%8D%20%E5%8F%8A%20%E6%B7%A8%20%E8%99%A7%20%E6%90%8D%20%E7%8E%87) Net loss increased from approximately RMB 228.1 million to RMB 240.9 million, primarily due to a significant decrease in gross profit margin | Metric | June 30, 2025 (Million RMB) | June 30, 2024 (Million RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Net Loss | 240.9 | 228.1 | +5.6% | - The increase in net loss was primarily due to a significant decrease in gross profit margin[58](index=58&type=chunk) [Liquidity and Capital Resources](index=20&type=section&id=%E6%B5%81%20%E5%8B%95%20%E8%B3%87%20%E9%87%91%20%E5%8F%8A%20%E8%B3%87%20%E6%9C%AC%20%E8%B3%87%20%E6%BA%90) The company faces liquidity pressure with cash and bank balances decreasing by 25% to RMB 27.9 million and net current liabilities increasing by 12.8% to RMB 4,421.8 million, relying on operating cash, debt financing, and shareholder contributions - The company primarily funds its growth through cash generated from operations, debt financing, and shareholder contributions[59](index=59&type=chunk) | Metric | June 30, 2025 (Million RMB) | December 31, 2024 (Million RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 27.9 | 37.2 | -25.0% | | Net Current Liabilities | 4,421.8 | 3,919.6 | +12.8% | - The increase in net current liabilities was primarily due to a decrease in properties under development of approximately **RMB 1,254.7 million**, partially offset by a net decrease in trade payables, other payables, and the current portion of interest-bearing bank borrowings[60](index=60&type=chunk) [Key Financial Ratios](index=21&type=section&id=%E4%B8%BB%20%E8%A6%81%20%E8%B2%A1%20%E5%8B%99%20%E6%AF%94%20%E7%8E%87) As of June 30, 2025, the company's gearing ratio increased to 99.0% and current ratio decreased to 0.54 times, reflecting higher financial leverage and deteriorating liquidity | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Gearing Ratio | 99.0% | 93.8% | +5.6% | | Current Ratio | 0.54 times | 0.62 times | -0.08 times | - The increase in gearing ratio was primarily due to a significant increase in total deficit of approximately **79.9%** as of June 30, 2025[61](index=61&type=chunk) [Risk Management](index=21&type=section&id=%E9%A2%A8%20%E9%9A%AA%20%E7%AE%A1%20%E7%90%86) The company manages foreign exchange and interest rate risks by closely monitoring market trends and, if necessary, considering hedging significant foreign currency exposures - The company's majority of income and expenses are denominated in RMB, and it manages foreign exchange risk by closely monitoring exchange rate movements and considering hedging significant foreign currency exposures when necessary[62](index=62&type=chunk) - The company manages interest rate risk by closely monitoring interest rate fluctuation trends and their impact on interest rate exposure, as well as regulating its debt portfolio[63](index=63&type=chunk) [Pledged Assets](index=22&type=section&id=%E6%8A%B5%20%E6%8A%BC%20%E8%B3%87%20%E7%94%A2) As of June 30, 2025, approximately RMB 3,884.7 million of the company's bank and other borrowings were secured by land held for development, equity interests in subsidiaries, properties under development, investment properties, rental income rights, and completed properties held for sale - Approximately **RMB 3,884.7 million** of bank and other borrowings are pledged against various assets, including land, equity, properties under development, and investment properties[64](index=64&type=chunk) [Capital Commitments](index=22&type=section&id=%E8%B3%87%20%E6%9C%AC%20%E6%89%BF%20%E6%93%94) As of June 30, 2025, the company's contracted but unprovided capital commitments for property development expenditures totaled approximately RMB 1,548.7 million, primarily for properties under development and investment properties | Capital Commitment Item | June 30, 2025 (Thousand RMB) | December 31, 2024 (Thousand RMB) | | :--- | :--- | :--- | | Properties Under Development | 1,042,297 | 1,767,317 | | Investment Properties | 289,691 | 299,899 | | Land Acquisition | 216,665 | 216,665 | | **Total** | **1,548,653** | **2,283,881** | [Financial Guarantees](index=23&type=section&id=%E8%B2%A1%20%E5%8B%99%20%E6%93%85%20%E4%BF%9D) As of June 30, 2025, the company provided financial guarantees of approximately RMB 1,877.8 million for customers' mortgage financing, with directors believing the net realizable value of the properties is sufficient to cover outstanding mortgages | Total Financial Guarantees | June 30, 2025 (Thousand RMB) | December 31, 2024 (Thousand RMB) | | :--- | :--- | :--- | | Guarantees for Mortgage Financing Granted by Certain Banks to Customers of the Group's Completed Properties Held for Sale | 1,877,832 | 1,368,544 | - The company provides guarantees for customers' mortgage financing, with the guarantee period from the grant of the mortgage loan until the issuance and registration of the property ownership certificate[68](index=68&type=chunk)[69](index=69&type=chunk) - The directors believe that even if customers default on repayments, the net realizable value of the related properties is sufficient to cover the outstanding mortgage loans, thus no financial liability provision has been made for these guarantees[69](index=69&type=chunk) [Significant Acquisitions and Disposals](index=24&type=section&id=%E9%99%84%20%E5%B1%AC%20%E5%85%AC%20%E5%8F%B8%E3%80%81%E8%81%AF%20%E7%87%9F%20%E4%BC%81%20%E6%A5%AD%20%E5%8F%8A%20%E5%90%88%20%E8%B3%87%20%E4%BC%81%20%E6%A5%AD%20%E7%9A%84%20%E9%87%8D%20%E5%A4%A7%20%E6%94%B6%20%E8%B3%BC%20%E5%8F%8A%20%E5%87%BA%20%E5%94%AE) For the six months ended June 30, 2025, the company did not undertake any significant acquisitions or disposals of its subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, the company did not undertake any significant acquisitions or disposals of its subsidiaries, associates, or joint ventures[70](index=70&type=chunk) [Material Investments Held](index=24&type=section&id=%E6%8C%81%20%E6%9C%89%20%E9%87%8D%20%E5%A4%A7%20%E6%8A%95%20%E8%B3%87) For the six months ended June 30, 2025, the company did not hold any material investments - For the six months ended June 30, 2025, the company did not hold any material investments[71](index=71&type=chunk) [Employees and Remuneration Policy](index=24&type=section&id=%E5%83%B1%20%E5%93%A1%20%E5%8F%8A%20%E8%96%AA%20%E9%85%AC%20%E6%94%BF%20%E7%AD%96) As of June 30, 2025, the company's employee count decreased to 116, with total employee salary and benefit expenses decreasing by 38.5% to RMB 13.4 million, maintaining a competitive remuneration system based on qualifications and performance | Metric | June 30, 2025 | June 30, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Number of Employees | 116 employees | 169 employees | -31.4% | | Total Employee Salary and Benefit Expenses (Million RMB) | 13.4 | 21.8 | -38.5% | - The company's remuneration system is based on employee qualifications, experience, position, and seniority, offering basic salaries, allowances, discretionary bonuses, performance-based pay, and year-end dividends[72](index=72&type=chunk) - The company has a share option scheme to incentivize employees and contributes to social insurance and housing provident funds for its employees[72](index=72&type=chunk) [Other Information](index=26&type=section&id=%E5%85%B6%20%E4%BB%96%20%E4%BF%A1%20%E6%81%AF) This section covers various corporate governance and administrative matters, including securities transactions, financial statement review, code compliance, and future outlook [Purchase, Sale or Redemption of the Company's Listed Securities](index=26&type=section&id=%E8%B3%BC%20%E8%B2%B7%E3%80%81%E5%87%BA%20%E5%94%AE%20%E6%88%96%20%E8%B3%96%20%E5%9B%9E%20%E6%9C%AC%20%E5%85%AC%20%E5%8F%B8%20%E4%B8%8A%20%E5%B8%82%20%E8%AD%89%20%E5%88%B8) During the period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[75](index=75&type=chunk) [Review of Consolidated Financial Statements](index=26&type=section&id=%E7%B6%9C%20%E5%90%88%20%E8%B2%A1%20%E5%8B%99%20%E5%A0%B1%20%E8%A1%A8%20%E4%B9%8B%20%E5%AF%A9%20%E9%96%B1) The Audit Committee reviewed the unaudited consolidated interim results for the period ended June 30, 2025, without disagreement, discussing accounting principles, internal controls, risk management, and financial reporting - The Audit Committee has reviewed the Group's unaudited consolidated interim results for the period ended June 30, 2025, with no disagreements[76](index=76&type=chunk) - The Audit Committee discussed accounting principles and policies, auditing, internal controls, risk management, and financial reporting matters[76](index=76&type=chunk) [Compliance with the Corporate Governance Code](index=27&type=section&id=%E9%81%B5%20%E5%AE%88%E3%80%8A%E4%BC%81%20%E6%A5%AD%20%E7%AE%A1%20%E6%B2%BB%20%E5%AE%88%20%E5%89%87%E3%80%8B) The Board confirms that the company has complied with all principles and code provisions of the Corporate Governance Code as set out in Appendix C1 of the HKEX Listing Rules for the six months ended June 30, 2025 - The company has complied with all principles and code provisions of the Corporate Governance Code as set out in Appendix C1 of the HKEX Listing Rules during the period[77](index=77&type=chunk) [Interim Dividend](index=27&type=section&id=%E4%B8%AD%20%E6%9C%9F%20%E8%82%A1%20%E6%81%AF) The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025, consistent with the prior period - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025[78](index=78&type=chunk) [No Material Changes](index=27&type=section&id=%E7%84%A1%20%E9%87%8D%20%E5%A4%A7%20%E8%AE%8A%20%E5%8B%95) Except as disclosed in this announcement, there have been no material changes in the company's business development, future prospects, or financial position, nor any significant events affecting the group since the publication of the 2024 annual report - Except as disclosed in this announcement, there have been no material changes in the company's business development, future prospects, or financial position, nor any significant events affecting the Group since the publication of the 2024 annual report[79](index=79&type=chunk) [Future Outlook](index=27&type=section&id=%E6%9C%AA%20%E4%BE%86%20%E5%B1%95%20%E6%9C%9B) The company anticipates continued demand and financing pressure in the real estate sector but expects further stimulus policies, focusing on project completion, accelerated sales, operational optimization, cost reduction, and active negotiations with lenders and creditors, having resumed trading on July 14, 2025 - The real estate industry is expected to continue facing demand and financing pressure in the coming year, but stimulus policies are anticipated to be introduced, potentially restoring consumer confidence and market sentiment[80](index=80&type=chunk) - The company will continue to focus on completing and delivering property projects, accelerating sales of properties under development and completed properties, integrating resources to optimize operations, and reducing expenses and capital expenditures[80](index=80&type=chunk) - The company is actively negotiating with lenders and creditors to find solutions as soon as possible[81](index=81&type=chunk) - The company resumed trading on July 14, 2025[81](index=81&type=chunk) [Standard Code for Securities Transactions by Directors](index=28&type=section&id=%E8%91%A3%20%E4%BA%8B%20%E9%80%B2%20%E8%A1%8C%20%E8%AD%89%20%E5%88%B8%20%E4%BA%A4%20%E6%98%93%20%E4%B9%8B%20%E6%A8%99%20%E6%BA%96%20%E5%AE%88%20%E5%89%87) The company has adopted the Standard Code for Securities Transactions by Directors as set out in Appendix C3 of the HKEX Listing Rules, and all directors confirmed compliance for the six months ended June 30, 2025 - The company has adopted the Standard Code for Securities Transactions by Directors as set out in Appendix C3 of the HKEX Listing Rules, and all directors have confirmed compliance[82](index=82&type=chunk) [Publication of Interim Results and Despatch of Interim Report](index=28&type=section&id=%E5%88%8A%20%E7%99%BC%20%E4%B8%AD%20%E6%9C%9F%20%E6%A5%AD%20%E7%B8%BE%20%E5%8F%8A%20%E5%AF%84%20%E7%99%BC%20%E4%B8%AD%20%E6%9C%9F%20%E5%A0%B1%20%E5%91%8A) This preliminary announcement has been published on the HKEX and company websites, with the full interim report containing all required information to be published in due course - This preliminary announcement has been published on the HKEX website and the company's website[83](index=83&type=chunk) - The interim report, containing all information required by the Listing Rules, will be published in due course[83](index=83&type=chunk)