塗鴉智能 目錄 | | 頁次 | | --- | --- | | 公司資料 | 2 | | 重點摘要 | 4 | | 管理層討論與分析 | 6 | | 業務回顧及展望 | 12 | | 企業管治 | 15 | | 其他資料 | 20 | | 中期財務資料審閱報告 | 40 | | 未經審計簡明合併財務報表及附註 | 41 | | 釋義 | 80 | 公司資料 王學集先生 （聯席董事長兼本公司首席執行官） 陳燎罕先生 （聯席董事長） 楊懿先生 張燕女士 獨立非執行董事 黃宣德先生 邱昌恒先生 郭孟雄先生 葉栢東先生 審計委員會 黃宣德先生 （主席） 郭孟雄先生 葉栢東先生 薪酬委員會 執行董事 王學集先生 邱昌恒先生 （主席） 葉栢東先生 提名委員會 張燕女士 邱昌恒先生 （主席） 郭孟雄先生 企業管治委員會 邱昌恒先生 （主席） 葉栢東先生 聯席公司秘書 柴曉浪先生 鄧景賢女士 授權代表 楊懿先生 鄧景賢女士 中國總部及主要營業地點 中國 浙江省 杭州市西湖區 華策中心A座10層 郵編：310012 羅兵咸永道會計師事務所 執業會計師 註冊公眾利益實體審計師 香港 中環 太子大廈22樓 02 塗鴉智能 202 ...

此年報（「年報」）備有英文及中文版。已收取英文或中文版年報之股東，均可向本公司股票登記處卓佳證券 登記有限公司（地址為香港夏慤道16號遠東金融中心17樓）提出書面要求，索取以另一種語言編製的年報版本。 年報（英文及中文版）已於本公司網站www.sino.com登載。凡選擇以本公司網站瀏覽所登載之公司通訊 （其中包括但不限於年報、財務摘要報告（如適用）、中期報告、中期摘要報告（如適用）、會議通告、 上市文件、通函及代表委任表格）以代替任何或所有印刷本之股東，均可要求索取年報之印刷本。 凡選擇或被視為已同意以透過本公司網站之電子方式收取公司通訊之股東，如在本公司網站收取或瀏覽 年報時遇有困難，可於提出要求下即獲免費發送年報印刷本。 股東可隨時發出書面通知予本公司股票登記處，卓佳證券登記有限公司，郵寄地址為香港夏慤道16號 遠東金融中心17樓，或透過電郵地址sinoland83-ecom@vistra.com，要求更改所選擇收取公司通訊的 語言版本及收取方式（印刷方式或以透過本公司網站之電子方式）。 目 錄 二零二五年年報 信和置業有限公司 1 2 公司資料 3 集團財務摘要 7 主席報告 21 業務回顧 58 可 ...

Corporate Information [Board of Directors and Committees](index=4&type=section&id=Board%20of%20Directors%20and%20Committees) The company's Board of Directors comprises executive directors Zhao Linghuan (Chairman), Wang Xiaolong, Jing Shen, and independent non-executive directors Leung Kwai Ki, Lo Wai Yan, and Zhuo Ping, with audit, remuneration, and nomination committees ensuring effective corporate governance - The Chairman of the Board is Mr. Zhao Linghuan, with executive directors including Mr. Wang Xiaolong and Mr. Jing Shen[6](index=6&type=chunk)[7](index=7&type=chunk) - Independent non-executive directors include Mr. Leung Kwai Ki (also Chairman of the Audit and Remuneration Committees), Mr. Lo Wai Yan, and Ms. Zhuo Ping[6](index=6&type=chunk)[7](index=7&type=chunk) [Company Details and Advisors](index=4&type=section&id=Company%20Details%20and%20Advisors) The company is registered in the Cayman Islands with its principal place of business in Central, Hong Kong, banking with Citibank and China Merchants Bank, audited by PwC, and listed under stock code 1488 - The company's registered office is in the Cayman Islands, with its principal place of business located at Two International Finance Centre, Central, Hong Kong[7](index=7&type=chunk)[12](index=12&type=chunk) - Principal bankers include Citibank (Hong Kong) Limited and China Merchants Bank Co., Ltd. in Hong Kong, and Industrial and Commercial Bank of China and China Merchants Bank Co., Ltd. in mainland China[9](index=9&type=chunk)[10](index=10&type=chunk)[12](index=12&type=chunk) - The auditor is PricewaterhouseCoopers, and the stock code is **1488**[11](index=11&type=chunk)[12](index=12&type=chunk) Management Discussion and Analysis [Performance Review](index=6&type=section&id=Performance%20Review) In the first half of 2025, the Group's total system sales remained stable, but system sales and financial statement revenue for Group-branded directly operated and franchised restaurants declined due to industry slowdown, increased competition, and weak consumption, prompting brands to adjust strategies Group System Sales and Revenue Overview for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change | Remarks | | :--- | :--- | :--- | :--- | :--- | | Total system sales of the Group and associates | 1,716 | 1,715 | Stable | Includes sales from all directly operated and franchised restaurants | | Group-branded system sales | 274 | 325 | -13.6% | Primarily due to intense market competition | | Group financial statement revenue | 190 | 244 | -22.0% | Primarily due to intense market competition | - As of June 30, 2025, the total number of stores across all brands under the Group and its associates was **1,131**, largely consistent with the same period in 2024[14](index=14&type=chunk)[18](index=18&type=chunk) - The overall growth of China's catering industry has slowed, market consolidation has intensified, consumer demand is more focused on price sensitivity and differentiated products, and price wars on food delivery platforms have increased pressure on corporate profitability[15](index=15&type=chunk)[18](index=18&type=chunk) - HooHoo Valley Chinese fast food leverages food delivery platform traffic, strengthens its freshly-cooked advantage, and launches new products to counter market competition; Xinladao Fish Hotpot responds to competition by piloting new models, upgrading products, expanding with light assets, and enhancing brand image[16](index=16&type=chunk)[17](index=17&type=chunk)[19](index=19&type=chunk) - Associate brand 'Meet Noodles' enhances competitiveness through price advantage, product variety, and multi-period operations, also expanding into the Hong Kong market; 'Baozaihuang' has over **200** stores nationwide, innovating with a 'stove-around' model to enhance dining experience[21](index=21&type=chunk)[24](index=24&type=chunk) - The Group continues to leverage the 'Co-creation Camp' platform to integrate ecosystem and industry resources, aiming to broaden revenue streams, strengthen industry cooperation, and drive innovative development[22](index=22&type=chunk)[24](index=24&type=chunk) [Revenue](index=7&type=section&id=Revenue) The Group's revenue for the first half of 2025 decreased by 22.0% year-on-year to RMB 190.3 million, primarily due to lower restaurant operations and food delivery revenue, while sales of food ingredients saw a slight increase Group Revenue Composition and YoY Change | Revenue Source | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Restaurant operations revenue | 71.7 | 116.2 | -38.3% | | Food delivery business revenue | 73.6 | 84.9 | -13.3% | | Sales of food ingredients revenue | 45.0 | 42.9 | +4.9% | | **Total Revenue** | **190.3** | **244.0** | **-22.0%** | - The decrease in restaurant operations revenue is primarily attributable to intensified market competition[23](index=23&type=chunk)[25](index=25&type=chunk) - The decline in food delivery business revenue is mainly due to a reduction in the number of stores[23](index=23&type=chunk)[25](index=25&type=chunk) [Cost and Expense Analysis](index=8&type=section&id=Cost%20and%20Expense%20Analysis) In the first half of 2025, several of the Group's costs and expenses decreased in absolute terms, but their percentage of revenue increased due to a larger revenue decline, indicating pressure on profitability, with employee benefit expenses and property rentals significantly down, while raw material costs as a percentage of revenue rose Changes in Key Costs and Expenses | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change | % of Revenue (2025 vs 2024) | | :--- | :--- | :--- | :--- | :--- | | Raw materials consumed and changes in inventories of finished goods | 83.5 | 99.8 | -16.3% | 43.9% vs 40.9% | | Online platform service fees and delivery fees | 13.4 | 16.1 | -16.8% | - | | Employee benefit expenses | 55.1 | 76.2 | -27.7% | 29.0% vs 31.2% | | Depreciation of right-of-use assets | 24.8 | 30.4 | -18.4% | 13.0% vs 12.5% | | Depreciation and amortisation of other assets | 6.7 | 8.9 | -24.7% | 3.5% vs 3.6% | | Property rentals and other related expenses | 4.6 | 8.2 | -43.9% | 2.4% vs 3.4% | | Other expenses | 18.5 | 22.5 | -17.8% | 9.7% vs 9.2% | - Raw material costs as a percentage of revenue increased from **40.9%** in H1 2024 to **43.9%** in H1 2025, primarily due to reduced revenue[26](index=26&type=chunk)[31](index=31&type=chunk) - Employee benefit expenses decreased by **27.7%**, mainly due to fewer directly operated stores, resulting in reduced employee working hours and cost control[28](index=28&type=chunk)[33](index=33&type=chunk) - Property rentals and other related expenses significantly decreased by **43.9%**, primarily due to the closure of some stores and relocation to lower-rent premises[36](index=36&type=chunk)[42](index=42&type=chunk) [Profitability and Loss](index=9&type=section&id=Profitability%20and%20Loss) In the first half of 2025, the Group's loss for the period narrowed to RMB 36.2 million, primarily benefiting from reduced operating losses and improved profitability of associates Changes in Key Profitability Indicators | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Share of profit/(loss) of associates | 5.9 (Profit) | (5.8) (Loss) | Turned profitable | | Net finance costs | 24.3 | 23.9 | +1.7% | | Income tax expense | 0.6 | 0.5 | +20.0% | | **Loss for the period** | **(36.2)** | **(46.6)** | **Loss narrowed by 22.3%** | - Associates turned from a loss of **RMB 5.8 million** in H1 2024 to a profit of **RMB 5.9 million** in H1 2025, primarily due to contributions from high-performing brands[38](index=38&type=chunk)[44](index=44&type=chunk) - Net finance costs slightly increased, mainly due to higher interest on convertible bonds[39](index=39&type=chunk)[45](index=45&type=chunk) [Non-GAAP Financial Measure](index=10&type=section&id=Non-GAAP%20Financial%20Measure) Excluding interest on convertible bonds, the adjusted loss for the first half of 2025 narrowed to RMB 15.4 million, compared to RMB 26.7 million in the same period of 2024 Reconciliation of Loss for the Period to Adjusted Loss | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Loss for the period | (36,167) | (46,569) | | Interest on convertible bonds | 20,748 | 19,869 | | **Adjusted loss for the period** | **(15,419)** | **(26,700)** | - Interest on convertible bonds is considered a non-operating item and does not reflect the operating results of the Group's principal business[49](index=49&type=chunk)[54](index=54&type=chunk) [Balance Sheet Highlights](index=10&type=section&id=Balance%20Sheet%20Highlights) As of June 30, 2025, the Group's right-of-use assets, inventories, trade and other receivables, trade and other payables, and lease liabilities all decreased, while total borrowings and convertible bonds increased Changes in Key Assets and Liabilities | Indicator | June 30, 2025 (RMB million) | Dec 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Right-of-use assets | 69.3 | 95.3 | -27.2% | | Inventories | 18.0 | 23.3 | -22.8% | | Trade and other receivables | 60.7 | 62.3 | -2.6% | | Trade and other payables | 114.6 | 116.3 | -1.5% | | Borrowings | 37.8 | 20.9 | +80.9% | | Convertible bonds and related interest | 658.5 | 647.8 | +1.6% | | Lease liabilities | 80.0 | 103.8 | -22.9% | - Inventory turnover days slightly increased from **43 days** in 2024 to **45 days** in H1 2025, primarily due to reduced revenue[56](index=56&type=chunk)[62](index=62&type=chunk) - Lease liabilities decreased mainly due to rental payments for existing leases and the closure of some stores in H1 2025[61](index=61&type=chunk)[67](index=67&type=chunk) - The total amount of convertible bonds and related interest increased, mainly due to interest accrued during the reporting period and the impact of exchange rate fluctuations[60](index=60&type=chunk)[66](index=66&type=chunk) [Future Outlook and Strategy](index=12&type=section&id=Future%20Outlook%20and%20Strategy) Despite intense competition in the catering industry, the Group remains confident in its long-term growth potential and will continue to implement strategic deployments, including enhancing brand enterprise value, optimizing directly operated businesses, leveraging the capitalization process of quality brands, and exploring diversified investment empowerment models - The Group will contribute to its profit by enhancing brand enterprise value and optimizing the performance of its directly operated businesses[68](index=68&type=chunk)[71](index=71&type=chunk)[74](index=74&type=chunk) - The Group plans to leverage the capitalization process of quality brands to achieve value enhancement and cash inflow[68](index=68&type=chunk)[71](index=71&type=chunk)[74](index=74&type=chunk) - The Group will explore diversified investment empowerment models, including store investments, to expand business growth points[68](index=68&type=chunk)[71](index=71&type=chunk)[74](index=74&type=chunk) - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025[68](index=68&type=chunk)[71](index=71&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=12&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) As of June 30, 2025, the Group's total deficit attributable to owners expanded, and current liabilities exceeded current assets, but with internal cash flow, borrowings, convertible bond financing, and the extension of convertible bond maturity, the Board believes the Group has sufficient funds to meet its debt obligations and capital expenditures for the next 12 months Liquidity and Capital Structure Overview | Indicator | June 30, 2025 (RMB million) | Dec 31, 2024 (RMB million) | | :--- | :--- | :--- | | Total deficit attributable to owners | 250.2 | 220.2 | | Current assets | 162.2 | 152.7 | | Current liabilities | 911.7 | 897.7 | | Current ratio | 0.18 | 0.17 | | Outstanding borrowings | 37.8 | 20.9 | | Cash and cash equivalents | 24.3 | 21.3 | | Net cash to equity ratio | 0.054 | -0.002 | - The Group's capital structure comprises debt (convertible bonds, lease liabilities, and borrowings) and equity attributable to equity holders of the Company (share capital and reserves)[78](index=78&type=chunk)[82](index=82&type=chunk) - The maturity date of the convertible bonds has been extended by **25 months** to December 23, 2027, with all accrued interest payment dates similarly extended[77](index=77&type=chunk)[81](index=81&type=chunk) [Capital Commitments and Significant Investments](index=13&type=section&id=Capital%20Commitments%20and%20Significant%20Investments) As of June 30, 2025, the Group had no significant capital commitments but held two material investments, "Meet Noodles" and "Tianshuilai," each exceeding 5% of total Group assets by book value, and is committed to supporting associate development through platform synergies - As of June 30, 2025, the Group had no contracted capital expenditure for property, plant and equipment not provided for in the condensed consolidated interim financial information[79](index=79&type=chunk)[83](index=83&type=chunk) Overview of Significant Investments (as of June 30, 2025) | Investee | Equity Interest | Book Value (RMB million) (Equity Method) | % of Group's Total Assets | | :--- | :--- | :--- | :--- | | Meet Noodles | 17.16% | 61.1 | 7.9% | | Tianshuilai | 25.03% | 52.4 | 6.8% | - 'Meet Noodles' is a leading modern Chinese noodle restaurant operator, with its store network expanding from **170** at the end of 2022 to **360** at the end of 2024[86](index=86&type=chunk)[89](index=89&type=chunk) - 'Tianshuilai' operates the 'Baozaihuang' brand, with over **200** stores nationwide, primarily directly operated[87](index=87&type=chunk)[89](index=89&type=chunk) - The Group has established a multi-brand investment matrix across regions, industries, and diverse business formats, implementing internal controls to effectively monitor investment projects[88](index=88&type=chunk)[89](index=89&type=chunk) [Other Financial and Operational Aspects](index=15&type=section&id=Other%20Financial%20and%20Operational%20Aspects) During the reporting period, the Group had no significant M&A or disposal activities, nor clear future major investment plans, with no pledged assets or material contingent liabilities, while the gearing ratio increased to 159%, and employee numbers decreased, but good employee relations, training, and competitive compensation were maintained - For the six months ended June 30, 2025, the Group had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures[91](index=91&type=chunk)[97](index=97&type=chunk) - As of the reporting date, the Group currently has no definite plans for significant investments and capital assets[92](index=92&type=chunk)[98](index=98&type=chunk) - As of June 30, 2025, the Group had no pledged assets or material contingent liabilities[93](index=93&type=chunk)[94](index=94&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk) Gearing Ratio | Indicator | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Gearing ratio | 159% | 152% | - The Group's business is primarily conducted in HKD and RMB, exposing it to foreign exchange risk, but no forward contracts were entered into for hedging during the reporting period[96](index=96&type=chunk)[102](index=102&type=chunk) - As of June 30, 2025, the Group had approximately **1,303** employees, a decrease from **1,582** as of December 31, 2024[103](index=103&type=chunk)[106](index=106&type=chunk) - No significant events occurred after the reporting period, other than the extension of convertible bond maturity and the disposal of 'Meet Noodles' equity[104](index=104&type=chunk)[107](index=107&type=chunk) [Shareholder and Governance Information](index=16&type=section&id=Shareholder%20and%20Governance%20Information) The report discloses the shareholdings and long positions of company directors and major shareholders, noting that the employee share option scheme and share award scheme have expired with no new grants in the first half of 2025, and the company complies with corporate governance codes and director securities dealing standards, with the audit committee having reviewed the interim report Directors' and Chief Executive's Long Positions in Shares and Underlying Shares of the Company (as of June 30, 2025) | Name | Capacity | Number of Shares (including issued shares and underlying shares) | Approximate % of the Company's Interest | | :--- | :--- | :--- | :--- | | Mr. Zhao Linghuan | Interest in controlled corporation | 1,701,520,440 (L) | 107.78% | | Mr. Wang Xiaolong | Beneficial owner | 40,255,932 (L) | 2.55% | | Mr. Jing Shen | Beneficial owner | 14,207,976 (L) | 0.90% | - As of June 30, 2025, Sonic Tycoon Limited held **1,183,998,000** shares and beneficially owned convertible bonds with a principal amount of **HKD 610,676,480**, convertible into **517,522,440** shares[112](index=112&type=chunk)[149](index=149&type=chunk) - The employee share option scheme and share award scheme have expired, with no new options or award shares granted during the six months ended June 30, 2025[115](index=115&type=chunk)[118](index=118&type=chunk)[123](index=123&type=chunk)[124](index=124&type=chunk)[138](index=138&type=chunk)[139](index=139&type=chunk)[140](index=140&type=chunk)[142](index=142&type=chunk) - The Company has complied with the provisions of the Corporate Governance Code set out in Appendix C1 to the Listing Rules, and the Directors have confirmed compliance with the Model Code for Securities Transactions by Directors[151](index=151&type=chunk)[152](index=152&type=chunk)[155](index=155&type=chunk)[156](index=156&type=chunk) - The Company's Audit Committee has reviewed the unaudited condensed consolidated interim financial information and the interim report for the six months ended June 30, 2025[153](index=153&type=chunk)[157](index=157&type=chunk) [Convertible Bonds Details](index=25&type=section&id=Convertible%20Bonds%20Details) The company signed an amendment deed with investors to extend the maturity date of convertible bonds totaling HKD 1,500,000,000 by 25 months to December 23, 2027, with all accrued interest payment dates similarly extended, an arrangement approved by shareholders and the Stock Exchange - The maturity date of the convertible bonds has been extended from November 23, 2025, to December 23, 2027, with all accrued interest payment dates similarly extended[159](index=159&type=chunk)[162](index=162&type=chunk) - As of June 30, 2025, the outstanding principal of the convertible bonds was **HKD 610,676,480**, convertible into **517,522,440** shares at an initial conversion price of **HKD 1.18** per share[161](index=161&type=chunk)[163](index=163&type=chunk) Changes in Company Share Capital Structure (Assuming Full Conversion of Convertible Bonds) | Shareholder | June 30, 2025 (Number of Shares) | June 30, 2025 (%) | After Full Conversion (Number of Shares) | After Full Conversion (Estimated %) | | :--- | :--- | :--- | :--- | :--- | | Investor | 1,183,998,000 | 75.00 | 1,701,520,440 | 81.17 | | Public | 394,666,000 | 25.00 | 394,666,000 | 18.83 | | **Total** | **1,578,664,000** | **100.00%** | **2,096,186,440** | **100.00%** | - No potentially dilutive shares were included in the calculation of diluted loss per share for H1 2025, as they had an anti-dilutive effect[167](index=167&type=chunk) Interim Condensed Consolidated Statement of Comprehensive Income [Key Financial Performance Indicators](index=28&type=section&id=Key%20Financial%20Performance%20Indicators) For the six months ended June 30, 2025, the Group's revenue decreased by 22.0% year-on-year to RMB 190.3 million, with loss for the period narrowing to RMB 36.2 million, primarily due to reduced operating losses and profit contributions from associates, and basic and diluted loss per share both at RMB 2.08 cents Key Data from the Consolidated Statement of Comprehensive Income for H1 2025 | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 190,271 | 243,952 | | Other income | 5,513 | 10,290 | | Raw materials consumed and changes in inventories of finished goods | (83,533) | (99,802) | | Employee benefit expenses | (55,144) | (76,163) | | Share of profit/(loss) of associates | 5,914 | (5,793) | | Loss before tax | (35,569) | (46,119) | | Income tax expense | (598) | (450) | | **Loss for the period** | **(36,167)** | **(46,569)** | | Loss per share attributable to equity holders of the Company (Basic) | (2.08) cents | (2.86) cents | | Loss per share attributable to equity holders of the Company (Diluted) | (2.08) cents | (2.86) cents | - Other comprehensive income for the period was **RMB 6,153 thousand**, primarily from exchange differences arising on translation of overseas operations[174](index=174&type=chunk) Interim Condensed Consolidated Balance Sheet [Key Financial Position Indicators](index=30&type=section&id=Key%20Financial%20Position%20Indicators) As of June 30, 2025, the Group's total assets were RMB 773.0 million, total liabilities were RMB 1,023.2 million, resulting in a total deficit of RMB 250.2 million, with current liabilities significantly exceeding current assets, mainly due to convertible bonds Key Data from the Consolidated Balance Sheet as of June 30, 2025 | Indicator | June 30, 2025 (RMB thousand) | Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Non-current assets** | **610,750** | **648,936** | | Property, plant and equipment | 38,516 | 44,353 | | Right-of-use assets | 69,323 | 95,303 | | Investments in associates | 151,300 | 153,759 | | **Current assets** | **162,223** | **152,746** | | Inventories | 18,001 | 23,335 | | Trade and other receivables | 55,919 | 53,209 | | Cash and cash equivalents | 24,346 | 21,325 | | **Total assets** | **772,973** | **801,682** | | **Current liabilities** | **911,689** | **897,680** | | Trade and other payables | 114,603 | 116,282 | | Lease liabilities (current portion) | 35,391 | 46,473 | | Borrowings | 37,839 | 20,860 | | Convertible bonds | 658,482 | 647,780 | | **Non-current liabilities** | **111,475** | **124,179** | | Lease liabilities (non-current portion) | 44,640 | 57,344 | | **Total liabilities** | **1,023,164** | **1,021,859** | | **Total deficit** | **(250,191)** | **(220,177)** | - As of June 30, 2025, the Group's current liabilities exceeded current assets by **RMB 749,466 thousand**, primarily due to convertible bonds being classified as current liabilities[178](index=178&type=chunk)[192](index=192&type=chunk) Interim Condensed Consolidated Statement of Changes in Equity [Equity Movements](index=32&type=section&id=Equity%20Movements) For the six months ended June 30, 2025, the deficit attributable to equity holders of the Company increased from RMB 249.6 million at the beginning of the period to RMB 276.3 million, mainly due to the loss for the period, partially offset by an increase in exchange reserves Key Data from the Consolidated Statement of Changes in Equity for H1 2025 | Indicator | Jan 1, 2025 (RMB thousand) | June 30, 2025 (RMB thousand) | | :--- | :--- | :--- | | Share capital | 133,023 | 133,023 | | Share premium | 693,388 | 693,388 | | Reserves | (11,664) | (5,511) | | Accumulated losses | (1,257,984) | (1,290,843) | | Deficit attributable to equity holders of the Company | (249,626) | (276,332) | | Non-controlling interests | 29,449 | 26,141 | | **Total deficit** | **(220,177)** | **(250,191)** | - Loss for the period attributable to equity holders of the Company was **RMB 32,859 thousand**[180](index=180&type=chunk) - Other comprehensive income for the period, primarily from exchange differences, was **RMB 6,153 thousand**[180](index=180&type=chunk) Interim Condensed Consolidated Statement of Cash Flow [Cash Flow Activities](index=33&type=section&id=Cash%20Flow%20Activities) For the six months ended June 30, 2025, the Group generated net cash of RMB 16.6 million from operating activities, had net cash outflows of RMB 6.1 million from investing activities and RMB 7.5 million from financing activities, resulting in a net increase of RMB 3.0 million in cash and cash equivalents Key Data from the Consolidated Statement of Cash Flow for H1 2025 | Cash Flow Category | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Net cash generated from operating activities | 16,618 | 14,641 | | Net cash (used in)/generated from investing activities | (6,120) | 6,059 | | Net cash used in financing activities | (7,469) | (23,754) | | Net increase/(decrease) in cash and cash equivalents | 3,029 | (3,054) | | Cash and cash equivalents at end of period | 24,346 | 32,602 | - Cash outflows from investing activities primarily included additions to property, plant and equipment, purchase of intangible assets, and purchase of financial assets measured at fair value[182](index=182&type=chunk) - Cash outflows from financing activities primarily included repayment of borrowings and payment of lease liabilities, partially offset by loans from related parties and proceeds from borrowings[183](index=183&type=chunk) Notes to the Condensed Consolidated Interim Financial Information [General Information](index=35&type=section&id=General%20Information) Bai Fu Holdings Limited and its subsidiaries primarily engage in chain restaurant operations, with the company registered in the Cayman Islands and its ultimate controlling shareholder being Mr. Zhao Linghuan, and the financial information presented in RMB and unaudited - The Group is principally engaged in chain restaurant operations[184](index=184&type=chunk) - The Company's ultimate controlling shareholder is Mr. Zhao Linghuan, who is also the Chairman of the Company[185](index=185&type=chunk)[188](index=188&type=chunk) - The condensed consolidated interim financial information is presented in RMB and is unaudited[186](index=186&type=chunk)[189](index=189&type=chunk)[190](index=190&type=chunk) [Basis of Preparation and Going Concern](index=35&type=section&id=Basis%20of%20Preparation%20and%20Going%20Concern) This financial information is prepared in accordance with HKAS 34 and presented on a going concern basis; despite current liabilities exceeding current assets, the Board believes the Group has sufficient funds for the next 12 months, considering the extended convertible bond maturity and future cash flows from operations and investing activities - This condensed consolidated interim financial information has been prepared in accordance with Hong Kong Accounting Standard 34 Interim Financial Reporting issued by the Hong Kong Institute of Certified Public Accountants and the disclosure requirements of Appendix D2 to the Listing Rules[187](index=187&type=chunk)[191](index=191&type=chunk) - As of June 30, 2025, the Group's current liabilities exceeded its current assets by **RMB 749,466 thousand**, including convertible bonds with a carrying amount of **RMB 658,482 thousand**[192](index=192&type=chunk)[196](index=196&type=chunk) - The maturity date of the convertible bonds has been extended by **25 months** to December 23, 2027, with this extension arrangement effective from July 8, 2025[193](index=193&type=chunk)[194](index=194&type=chunk)[196](index=196&type=chunk) - The Directors believe that, based on the extension arrangement and the Group's ability to generate net cash inflows from future operating and investing activities, the Group has sufficient funds to meet its debt obligations and capital expenditure requirements for the next **12 months**, thus the financial information is prepared on a going concern basis[195](index=195&type=chunk)[197](index=197&type=chunk) [Principal Accounting Policies](index=37&type=section&id=Principal%20Accounting%20Policies) This financial information is prepared on a historical cost basis, except for financial assets measured at fair value, and the Group has adopted HKAS 21 (amended) while disclosing new and amended standards not yet adopted, which are expected to have a general impact on future financial statement presentation and disclosures - This condensed consolidated interim financial information has been prepared on the historical cost convention, except for financial assets measured at fair value through profit or loss, which are measured at fair value[198](index=198&type=chunk)[202](index=202&type=chunk) - The Group has first applied HKAS 21 (amendment) 'Lack of Exchangeability' from January 1, 2025, with no significant impact expected[199](index=199&type=chunk)[200](index=200&type=chunk)[202](index=202&type=chunk) - New and amended standards not yet adopted include HKFRS 9, HKFRS 7 amendments, HKFRS 18, and HKFRS 19, with HKFRS 18 expected to have a general impact on the presentation and disclosures of the Group's financial statements[201](index=201&type=chunk)[204](index=204&type=chunk)[205](index=205&type=chunk)[210](index=210&type=chunk) [Financial Risk Management](index=38&type=section&id=Financial%20Risk%20Management) The Group faces market risks (including currency and cash flow interest rate risks), credit risk, and liquidity risk, and as of June 30, 2025, its financial assets measured at fair value primarily consist of unlisted wealth management products valued using the discounted cash flow method - The Group's operations are exposed to market risk (including currency risk and cash flow interest rate risk), credit risk, and liquidity risk[208](index=208&type=chunk)[212](index=212&type=chunk) - There were no changes in risk management policies during the reporting period[209](index=209&type=chunk)[213](index=213&type=chunk) Assets Measured at Fair Value (as of June 30, 2025) | Asset Category | Level 1 (RMB thousand) | Level 2 (RMB thousand) | Level 3 (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Investments in unlisted wealth management products | — | — | 28,545 | 28,545 | - For unlisted wealth management products, valuation is performed using the discounted cash flow method, with key assumptions including expected return rates and discount rates[226](index=226&type=chunk)[227](index=227&type=chunk) [Revenue and Segment Information](index=42&type=section&id=Revenue%20and%20Segment%20Information) The Group's chief operating decision-maker reviews the Group as a whole, thus no operating segment information is presented, with revenue primarily from restaurant operations, food delivery, and sales of food ingredients, mainly in China, and no single external customer accounting for over 10% of revenue - The Group's chief operating decision-maker reviews the Group as a whole, and thus no operating segment information is presented[229](index=229&type=chunk)[230](index=230&type=chunk)[232](index=232&type=chunk) Revenue Breakdown from Contracts with Customers | Revenue Source | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Restaurant operations | 71,696 | 116,163 | | Food delivery business | 73,567 | 84,865 | | Sales of food ingredients | 45,008 | 42,924 | | **Total** | **190,271** | **243,952** | - The Group's principal market is in China, with sales to overseas customers contributing less than **10%**, and no non-current assets located outside China[234](index=234&type=chunk)[236](index=236&type=chunk) [Other Income](index=43&type=section&id=Other%20Income) In the first half of 2025, the Group's other income was RMB 5.5 million, a 46.4% year-on-year decrease, primarily due to reduced franchise and management service income Composition of Other Income | Revenue Source | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Franchise income | 3,561 | 7,703 | | Government grants | — | 220 | | Income from wealth management product investments | 79 | 169 | | Management service income | 1,066 | 1,733 | | Loan interest income | 162 | 159 | | Others | 396 | 555 | | **Total** | **5,513** | **10,290** | - Government grants primarily comprise tax refunds and amortisation of deferred government grants, with no unfulfilled conditions[238](index=238&type=chunk) - Management service income primarily includes fees charged for providing commercial, management, and administrative support services[238](index=238&type=chunk) [Other Expenses](index=44&type=section&id=Other%20Expenses) In the first half of 2025, the Group's other expenses were RMB 18.5 million, a 17.8% year-on-year decrease, primarily due to reduced routine maintenance expenses Composition of Other Expenses | Expense Category | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Routine maintenance expenses | 4,006 | 7,419 | | Advertising and marketing expenses | 2,387 | 2,952 | | Business development expenses | 2,951 | 3,940 | | Professional service fees | 2,409 | 2,427 | | Auditor's remuneration (audit services) | 900 | 900 | | Other expenses | 5,838 | 4,826 | | **Total other expenses** | **18,491** | **22,464** | - A significant reduction in routine maintenance expenses was the primary reason for the decrease in other expenses[240](index=240&type=chunk) [Finance Income and Expenses](index=44&type=section&id=Finance%20Income%20and%20Expenses) In the first half of 2025, the Group's net finance costs were RMB 24.3 million, a slight increase from the same period in 2024, primarily influenced by interest on convertible bonds and related party loans Composition of Finance Income and Expenses | Category | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest income from bank deposits | 25 | 58 | | Interest on convertible bonds | (20,748) | (19,869) | | Interest on lease liabilities | (2,194) | (3,517) | | Interest on bank borrowings | (144) | (149) | | Interest on loans from related parties | (854) | — | | Others | (344) | (468) | | **Net finance costs** | **(24,259)** | **(23,945)** | - Interest on convertible bonds and interest on loans from related parties were the main reasons for the increase in net finance costs[242](index=242&type=chunk) [Income Tax Expense](index=45&type=section&id=Income%20Tax%20Expense) In the first half of 2025, the Group's income tax expense was RMB 0.6 million, an increase from the same period in 2024, primarily due to withholding income tax on dividends received from associates Composition of Income Tax Expense | Category | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Hong Kong profits tax | — | — | | Withholding income tax on dividends from associates | 379 | — | | China corporate income tax | 42 | 50 | | Deferred tax | 177 | 400 | | **Total** | **598** | **450** | - Hong Kong profits tax adopts a two-tiered tax rate system, and the corporate income tax rate for PRC subsidiaries is **25%**[246](index=246&type=chunk)[247](index=247&type=chunk)[250](index=250&type=chunk)[251](index=251&type=chunk) - Dividends received from PRC associates are subject to withholding income tax at a rate of **10%**[248](index=248&type=chunk)[252](index=252&type=chunk) [Loss for the Period](index=46&type=section&id=Loss%20for%20the%20Period) The Group's loss for the first half of 2025 was after deducting total depreciation and amortisation of RMB 31.5 million, and total property rentals and other lease-related expenses of RMB 4.6 million Key Deductions for Loss for the Period | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Depreciation of right-of-use assets | 24,826 | 30,444 | | Depreciation of property, plant and equipment | 6,493 | 8,408 | | Amortisation of intangible assets | 167 | 461 | | **Total depreciation and amortisation** | **31,486** | **39,313** | | Total property rentals and other lease-related expenses | 4,578 | 8,181 | | Auditor's remuneration (audit services) | 900 | 900 | [Loss Per Share](index=47&type=section&id=Loss%20Per%20Share) For the six months ended June 30, 2025, the Group's basic and diluted loss per share were both RMB 2.08 cents, a narrowing from RMB 2.86 cents in the same period of 2024, with dilutive potential ordinary shares excluded from diluted loss per share calculation due to their anti-dilutive effect Loss Per Share | Indicator | H1 2025 (RMB cents) | H1 2024 (RMB cents) | | :--- | :--- | :--- | | Basic loss per share | (2.08) | (2.86) | | Diluted loss per share | (2.08) | (2.86) | - Basic loss per share is calculated based on the loss for the period attributable to equity holders of the Company of **RMB 32,859 thousand** and the weighted average number of ordinary shares in issue of **1,578,664 thousand** shares[257](index=257&type=chunk)[260](index=260&type=chunk) - The calculation of diluted loss per share did not assume the issue of any dilutive potential ordinary shares as they had an anti-dilutive effect[259](index=259&type=chunk)[261](index=261&type=chunk) [Investments in Associates](index=50&type=section&id=Investments%20in%20Associates) As of June 30, 2025, the Group's investments in associates had a book value of RMB 151.3 million, a slight decrease from the beginning of the period, with new investments of RMB 1.01 million and a share of profit of RMB 5.9 million recognized during the period Changes in Investments in Associates | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Balance at beginning of period | 153,759 | 229,848 | | Additions | 1,010 | — | | Share of profit/(loss) for the period | 5,914 | (5,793) | | Dividends declared by associates | (3,539) | — | | Disposal | (1,500) | — | | Exchange differences on translation | (4,344) | 1,758 | | **Balance at end of period** | **151,300** | **225,813** | - Investments in associates generated a share of profit of **RMB 5,914 thousand** for the period, compared to a loss of **RMB 5,793 thousand** in the same period of 2024[267](index=267&type=chunk) [Trade and Other Receivables](index=51&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2025, the Group's net trade and other receivables totaled RMB 60.7 million, a slight decrease from the end of 2024, comprising net trade receivables of RMB 9.5 million and net other receivables of RMB 51.3 million Net Trade and Other Receivables | Category | June 30, 2025 (RMB thousand) | Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables — net | 9,461 | 7,720 | | Other receivables — net | 51,258 | 54,601 | | **Trade and other receivables — net** | **60,719** | **62,321** | Ageing Analysis of Trade Receivables (by invoice date) | Ageing | June 30, 2025 (RMB thousand) | Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 6 months | 5,061 | 5,304 | | Over 6 months | 4,110 | 6,094 | | **Total** | **9,414** | **11,155** | - Other receivables primarily include consideration receivable related to partial disposal of investments in associates, rental deposits, and amounts due from related parties[279](index=279&type=chunk) [Trade and Other Payables](index=54&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, the Group's total trade and other payables were RMB 114.6 million, a slight decrease from the end of 2024, comprising trade payables of RMB 33.7 million and other payables and accruals of RMB 80.9 million Trade and Other Payables | Category | June 30, 2025 (RMB thousand) | Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade payables | 33,680 | 36,649 | | Other payables and accruals | 80,923 | 79,633 | | **Total** | **114,603** | **116,282** | Ageing Analysis of Trade Payables (by invoice date) | Ageing | June 30, 2025 (RMB thousand) | Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 6 months | 17,915 | 20,675 | | Over 6 months | 15,765 | 15,974 | | **Total** | **33,680** | **36,649** | - Other payables and accruals primarily include wages, salaries and other employee benefits, deposits received for partial disposal of investments in associates, accrued renovation costs, and amounts due to franchisees[289](index=289&type=chunk) [Borrowings](index=57&type=section&id=Borrowings) As of June 30, 2025, the Group's total borrowings were RMB 37.8 million, a significant 80.9% increase from the end of 2024, with all borrowings due within 12 months and a weighted average annual interest rate of 5.58% Composition and Maturity of Borrowings | Category | June 30, 2025 (RMB thousand) | Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Secured bank borrowings | 2,600 | 1,600 | | Unsecured and unguaranteed bank borrowings | 10,000 | 10,000 | | Borrowings from related parties | 18,239 | 9,260 | | Borrowings from third parties | 7,000 | — | | **Total borrowings** | **37,839** | **20,860** | | Due within 12 months or less | 37,839 | 20,860 | Weighted Average Annual Interest Rate | Indicator | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Borrowings | 5.58% | 5.16% | - As of June 30, 2025, bank borrowings of **RMB 2.6 million** were guaranteed by third parties[294](index=294&type=chunk) [Convertible Bonds](index=58&type=section&id=Convertible%20Bonds) As of June 30, 2025, convertible bonds had a carrying amount of RMB 658.5 million, all classified as current liabilities, with changes in both the liability and equity components during the period due to interest expenses and exchange differences Composition of Convertible Bonds | Category | June 30, 2025 (RMB thousand) | Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Convertible bonds (current portion) | 658,482 | 647,780 | | Convertible bonds (non-current portion) | — | — | | **Total** | **658,482** | **647,780** | - The carrying amount of all convertible bonds was classified as current liabilities because their original maturity dates were within **12 months** from the respective balance sheet dates[296](index=296&type=chunk)[297](index=297&type=chunk) Changes in Components of Convertible Bonds | Item | Liability Component (RMB thousand) | Equity Component (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | | Jan 1, 2025 | 647,780 | 104,294 | 752,074 | | Interest expense | 20,748 | — | 20,748 | | Exchange differences | (10,046) | — | (10,046) | | **June 30, 2025** | **658,482** | **104,294** | **762,776** | [Share-Based Payments](index=61&type=section&id=Share-Based%20Payments) As of June 30, 2025, 18,944 thousand share options remained unexercised under the employee share option scheme, with a weighted average exercise price of HKD 1.08 per option and a remaining contractual life of 2 years, while 35,520 thousand award shares remained unvested under the share award scheme, with an average exercise price of HKD 0.54 per share Changes in Employee Share Option Scheme | Indicator | Jan 1, 2025 (thousand options) | June 30, 2025 (thousand options) | | :--- | :--- | :--- | | Number of outstanding share options | 18,944 | 18,944 | | Weighted average exercise price per option (HKD) | 1.08 | 1.08 | | Exercisable at June 30 | — | — | - As of June 30, 2025, the weighted average remaining contractual life for outstanding share options was **2 years**[307](index=307&type=chunk)[308](index=308&type=chunk) Changes in Share Award Scheme | Indicator | Jan 1, 2025 (thousand shares) | June 30, 2025 (thousand shares) | | :--- | :--- | :--- | | Number of award shares | 35,520 | 35,520 | | Average exercise price per award share (HKD) | 0.54 | 0.54 | [Related and Connected Party Disclosures](index=63&type=section&id=Related%20and%20Connected%20Party%20Disclosures) The Group engaged in several significant related party transactions, including convertible bond interest, sales/purchases of goods and services, and loans, with net amounts due from related parties of RMB 14.95 million and borrowings from related parties of RMB 18.24 million as of June 30, 2025 Significant Related Party Transactions (H1 2025) | Related Party Name | Relationship | Nature of Transaction | Amount (RMB thousand) | | :--- | :--- | :--- | :--- | | Jie Heng Limited | Parent company | Interest on convertible bonds | 20,748 | | Quan Jin Cheng Enterprise Management (Beijing) Co., Ltd. | Key management personnel have significant influence | Sales of goods and services | 590 | | Quan Jin Cheng Food Processing (Beijing) Co., Ltd. | Key management personnel have significant influence | Purchase of goods | 773 | | United Strength Arch Limited | Controlled by ultimate controlling company | Loans received | 9,120 | | United Strength Arch Limited | Controlled by ultimate controlling company | Interest expense | 854 | Outstanding Balances Arising from Related Party Transactions (as of June 30, 2025) | Category | Amount (RMB thousand) | | :--- | :--- | | Trade receivables | 3,875 | | Other receivables — current | 11,969 | | Other receivables — non-current | 2,981 | | Other current assets — prepayments | 2,132 | | **Total assets** | **20,957** | | Trade payables | 5,464 | | Other payables | 62 | | Contract liabilities | 128 | | Borrowings | 18,239 | | **Total liabilities** | **23,893** | - Other amounts due from related parties include secured and unsecured loans, and receivables for management service fees (for which expected credit loss provisions have been made)[321](index=321&type=chunk) [Events After the Balance Sheet Date](index=66&type=section&id=Events%20After%20the%20Balance%20Sheet%20Date) In addition to the convertible bond maturity extension, the company completed the disposal of a 1.71% equity interest in Guangzhou Meet Noodles Catering Co., Ltd. on August 5, 2025, expected to generate a pre-tax gain of approximately RMB 42 million - The Company entered into an equity transfer agreement on July 31, 2025, and completed the disposal of a **1.71%** equity interest in Guangzhou Meet Noodles Catering Co., Ltd. on August 5, 2025[325](index=325&type=chunk)[327](index=327&type=chunk) - This disposal is expected to generate a pre-tax gain of approximately **RMB 42 million**, calculated based on the carrying value of the investment and the disposal consideration on the disposal date[326](index=326&type=chunk)[327](index=327&type=chunk)

Financial Performance - For the six months ended June 30, 2025, the company reported total revenue of approximately RMB 172.7 million, a decrease of 8.76% compared to RMB 189.3 million in the same period of 2024[12]. - Gross profit for the same period was RMB 21.2 million, reflecting a decline of 21.15% from RMB 26.9 million year-on-year[12]. - Profit before tax decreased by 54.67% to RMB 6.7 million, down from RMB 14.8 million in the previous year[12]. - The net profit for the period was RMB 5.9 million, a decrease of 52.22% compared to RMB 12.4 million in 2024[12]. - Revenue for the six months ended June 30, 2025, was approximately RMB 172.7 million, a decrease of about 8.76% from RMB 189.3 million for the same period in 2024[24]. - Total sales revenue of aluminum alloy turbines decreased by approximately 9.03% to RMB 167.3 million for the six months ended June 30, 2025, compared to RMB 183.9 million in 2024[25]. - Operating profit decreased to RMB 4,839 thousand, a decline of 60.4% from RMB 12,238 thousand in the previous year[92]. - Net profit for the period was RMB 5,947 thousand, a decrease of 52.3% compared to RMB 12,447 thousand in 2024[93]. - Basic and diluted earnings per share were RMB 0.006, down from RMB 0.012 in the previous year[93]. Assets and Liabilities - The total assets as of June 30, 2025, amounted to RMB 498.9 million, representing a slight increase of 1.06% from RMB 493.6 million at the end of 2024[13]. - Total liabilities decreased by approximately 0.46% from RMB 93.2 million as of December 31, 2024, to RMB 92.7 million as of June 30, 2025[39]. - Current assets rose by approximately 5.48% from RMB 397.1 million as of December 31, 2024, to RMB 418.8 million as of June 30, 2025, primarily due to increases in inventory and loans to related parties[39]. - Current liabilities were approximately RMB 83.4 million as of June 30, 2025, slightly down from RMB 83.7 million as of December 31, 2024[40]. - The company's total equity increased to RMB 406,136 thousand from RMB 400,455 thousand at the end of 2024[96]. Sales and Market Performance - The company sold over 468.4 thousand aluminum alloy wheels during the reporting period, with domestic and overseas sales accounting for approximately 32.75% and 67.25% of total revenue, respectively[15]. - Revenue from small, medium, and large aluminum alloy wheels was approximately RMB 35.6 million, RMB 118.4 million, and RMB 13.3 million, respectively[15]. - Overseas market sales accounted for approximately 65.14% of total revenue, with overseas sales revenue decreasing by about 13.91% to RMB 112.5 million[27]. - The company had 110 customers in China and 85 customers in overseas markets as of June 30, 2025[17]. Research and Development - The company successfully developed 187 new products during the first half of 2025[16]. - The company’s research and development costs increased by 2.85% to approximately RMB 6.9 million for the six months ended June 30, 2025[34]. - Research and development costs for the six months ended June 30, 2025, totaled RMB 6,850,000, compared to RMB 6,660,000 in 2024, reflecting an increase of 2.9%[116]. Cash Flow and Investments - Operating cash flow for the six months ended June 30, 2025, was RMB 10,125,000, compared to RMB 2,297,000 for the same period in 2024, representing a significant increase[101]. - Net cash generated from operating activities was RMB 9,409,000, a turnaround from a net cash used of RMB (429,000) in the previous year[101]. - The company incurred a net cash outflow from investing activities of RMB (31,194,000), an improvement from RMB (44,470,000) in the prior year[101]. Corporate Governance - The company has committed to high standards of corporate governance to protect shareholder interests and enhance corporate value[79]. - The audit committee, consisting of three independent non-executive directors, has reviewed the accounting principles and internal controls for the financial reporting period[86]. - The company has complied with all applicable provisions of the corporate governance code since January 1, 2025[80]. Employee and Compensation - As of June 30, 2025, the total number of employees was 487, with total employee costs amounting to RMB 24.7 million, a slight increase from RMB 24.2 million for the same period in 2024[63]. - The board regularly reviews the compensation policy, which includes mandatory social insurance contributions for employees in China[63]. Stock Options and Dividends - The group has a stock option plan approved on November 18, 2022, allowing for a maximum of 10% of the total issued shares, equating to 100 million shares, to be granted under the plan[70][71]. - The company did not declare any interim dividend for the six months ended June 30, 2025, consistent with the previous period[132].

Financial Performance - Hua Medicine reported a sales increase of 108% for Huadongning®, selling approximately 1,764,000 boxes in the first half of 2025 compared to 846,000 boxes in the same period of 2024[10]. - Revenue for the first half of 2025 reached approximately RMB 217.4 million, reflecting a year-on-year growth of 112% after transitioning to full self-commercialization[10]. - Gross profit for the first half of 2025 was approximately RMB 117.8 million, an increase of about RMB 70.1 million or 147% compared to the same period in 2024[12]. - The gross margin improved to 54.2% in the first half of 2025, up 7.7 percentage points from 46.5% in the same period of 2024[12]. - The company recorded a half-year profit of RMB 1.18 billion for the first time, marking a key milestone towards sustainable profitability[24]. - Basic earnings per share for the period was RMB 1.20, compared to a loss of RMB 0.15 per share in 2024[72]. - The company reported a net profit attributable to shareholders of RMB 1,183,946,000 for the six months ended June 30, 2025, compared to a loss of RMB 142,241,000 for the same period in 2024[99]. Income and Expenses - Other income surged to approximately RMB 1,254.6 million, a 2,178% increase, primarily due to milestone revenue from Bayer amounting to RMB 1,243.5 million[12]. - Sales expenses increased only 5% to RMB 64.2 million, while the sales expense as a percentage of revenue dropped from 59.5% in 2024 to 29.5% in 2025[12]. - R&D expenses decreased from RMB 1,197.8 million for the six months ended June 30, 2024, to RMB 658.2 million for the six months ended June 30, 2025, with clinical trial costs dropping by RMB 67 million[30]. - Administrative expenses decreased from RMB 611 million for the six months ended June 30, 2024, to RMB 531 million for the six months ended June 30, 2025, mainly due to a reduction in labor costs of RMB 41 million[31]. - The company incurred financing costs of RMB 3,968,000, slightly up from RMB 3,880,000 in the previous year[72]. Cash Flow and Assets - Cash balance as of June 30, 2025, was approximately RMB 1,022.8 million, providing a solid foundation for future R&D and commercialization plans[10]. - Cash used in operating activities was RMB 844 million for the six months ended June 30, 2025, compared to RMB 2,267 million for the same period in 2024[35]. - The company reported cash and cash equivalents of RMB 1,022.8 million as of June 30, 2025[34]. - Total assets decreased to RMB 1,420,001,000 from RMB 1,527,292,000 as of December 31, 2024[73]. - Current liabilities decreased significantly to RMB 159,488,000 from RMB 330,271,000, reflecting improved liquidity[73]. Market Expansion and Product Development - The company submitted a registration application for dorzagliatin 75mg in Hong Kong, aiming to expand its business in Greater China and Southeast Asia[10]. - Ongoing post-marketing studies are evaluating the long-term safety and efficacy of dorzagliatin in various patient populations, further supporting its potential as a diabetes treatment[11]. - The company plans to initiate bioequivalence studies for the fixed-dose combination of dorzagliatin and metformin in early 2026, following the completion of pre-IND data submission in August 2025[18]. - The company is exploring partnerships in Southeast Asia and countries along the Belt and Road Initiative to expand the market for dorzagliatin and second-generation GKAs[21]. Employee and Shareholder Information - As of June 30, 2025, the company has a total of 285 employees, with 52% in sales and marketing, 22% in R&D, and 4% in production[56]. - Employee costs for the six months ending June 30, 2025, were approximately RMB 97.0 million, an increase of 19.5% from RMB 81.4 million for the same period in 2024[57]. - The company has adopted two share plans: the pre-IPO share incentive plan and the post-IPO share option plan, with 9,700,000 shares available for issuance under these plans during the reporting period[58]. - The company has established an employee trust to manage the pre-IPO share incentive plan, issuing a total of 117,000,000 shares to the trustee[59]. - The company’s directors hold a total of 74,436,450 unexercised options as of June 30, 2025, which includes 3,410,000 options granted during the period[113]. Corporate Governance and Compliance - The company has adopted the corporate governance code and confirmed compliance with all applicable provisions during the six months ending June 30, 2025[135]. - The company's interim financial performance for the six months ending June 30, 2025, has been reviewed by Deloitte, confirming compliance with applicable accounting principles and sufficient disclosure[139]. - The company has maintained high levels of corporate governance to protect shareholder interests and enhance corporate value[134].

目錄 Contents | Corporate Information | 公司資料 | 02 | | --- | --- | --- | | Financial Highlights | 財務摘要 | 05 | | Definitions | 釋義 | 07 | | Management Discussion and Analysis | 管理層討論與分析 | 10 | | Corporate Governance and Other Information | 企業管治及其他資料 | 32 | | Report on Review of Interim Financial Information | 中期財務資料審閱報告 | 43 | | Condensed Consolidated Statement of Profit or Loss | 簡明綜合損益及其他全面收益表 | 45 | | and Other Comprehensive Income | | | | Condensed Consolidated Statement of Financial Position | 簡明綜合財務狀況表 | 4 ...

目 錄 | 財務摘要 | 2 | | --- | --- | | 主席報告和首席執行官業務回顧及展望 | 4 | | 管理層討論及分析 | 6 | | 核數師獨立審閱報告 | 18 | | 簡明綜合損益及其他全面收益報表 | 20 | | 簡明綜合財務狀況報表 | 22 | | 簡明綜合權益變動表 | 25 | | 簡明綜合現金流量表 | 28 | | 簡明綜合中期財務報表附註 | 30 | | 董事及主要行政人員於股份、 | | | 相關股份及債券中的權益及淡倉 | 77 | | 股份計劃 | 79 | | 主要股東的權益及淡倉 | 88 | | 企業管治及其他資料 | 89 | | 公司資料 | 93 | 財務摘要 | | 截至 6 月 30 日止六個月 | | | | | --- | --- | --- | --- | --- | | | 2025 年 | 2024 年 | 變動 | 變動百分比 | | | 人民幣千元 | 人民幣千元 | 人民幣千元 | | | | （未經審核） | （未經審核） | | | | 收入 | | | | | | 銷售多晶硅 | 3,964,456 | 4,861,805 ...

[Company Information](index=3&type=section&id=Company%20Information) During the reporting period, the company's board of directors saw changes, with Ms. Lü Min appointed as an employee representative director, Mr. Meng Chunying and Mr. Han Fengxiang as non-executive directors, and Ms. Xue Rui, Ms. Hu Yuxia, and Mr. Li Liang retiring as directors; the registered office is in Beijing, China, and the principal place of business in Hong Kong is at Hopewell Centre, Wan Chai - Board members changed, with Ms. Lü Min, Mr. Meng Chunying, and Mr. Han Fengxiang appointed, while Ms. Xue Rui, Ms. Hu Yuxia, and Mr. Li Liang retired[4](index=4&type=chunk)[64](index=64&type=chunk) - The company's registered office is located at No. 33 Financial Street, Xicheng District, Beijing, China[4](index=4&type=chunk) - The principal place of business in Hong Kong is located at 46/F, Hopewell Centre, 183 Queen's Road East, Wan Chai, Hong Kong[6](index=6&type=chunk) - The auditor is Grant Thornton Hong Kong Limited[6](index=6&type=chunk) [Chairman's Statement](index=5&type=section&id=Chairman's%20Statement) Chairman Mr. Sun Jie presented the unaudited consolidated results for the six months ended June 30, 2025, highlighting stable development, business expansion in high-tier regions, diversified service offerings, technology empowerment for efficiency, and a focus on service quality - In the first half of 2025, the property management industry maintained diversified development, with high-quality services and standardized governance becoming key focuses[7](index=7&type=chunk) - The Group continued to deepen its presence in key regions such as Beijing-Tianjin-Hebei, Yangtze River Delta, and Greater Bay Area, as well as first and second-tier high-tier cities' property management markets[8](index=8&type=chunk) - New projects include the Huairou Party School and Disaster Recovery Center of China Development Bank, the Management Cadre College of the National Forestry and Grassland Administration, and the Chinese People's Liberation Army Navy Museum[8](index=8&type=chunk) - A "1+N" business layout has been formed, with property management as the core business and value-added services developing synergistically, optimizing the operating mechanism for value-added services[9](index=9&type=chunk) - Increased application of digital technology, upgraded the headquarters budget system's permission management module, and promoted intelligent transformation of power distribution rooms in managed projects[10](index=10&type=chunk) - Awarded "2025 China Property Service Top 100 Enterprises TOP14" and "2025 China Office Property Management Excellent Enterprise" among other honors[11](index=11&type=chunk) [Management Discussion and Analysis](index=8&type=section&id=Management%20Discussion%20and%20Analysis) This chapter reviews the Group's business operations and financial performance for the first half of 2025, noting significant growth in managed area and projects, particularly in non-residential and independent third-party segments, alongside increased revenue but decreased gross margin due to market competition and cost pressures - The Group's managed area was approximately **49.59 million square meters**, a year-on-year increase of **12.8%**, with **391 managed projects**, an increase of **65** year-on-year[14](index=14&type=chunk) - Non-residential property managed area was approximately **28.49 million square meters**, accounting for approximately **57.4%**[14](index=14&type=chunk) - Among the newly added managed area in the first half of the year, projects from independent third parties accounted for **90.7%**[14](index=14&type=chunk) - Revenue increased from RMB813.69 million in the first half of 2024 to **RMB951.38 million** in the first half of 2025, an increase of approximately **16.92%**[38](index=38&type=chunk)[39](index=39&type=chunk) - Overall gross margin decreased from **15.71%** in the first half of 2024 to **13.51%** in the first half of 2025, a decrease of **2.20 percentage points**[42](index=42&type=chunk) [Business Review](index=8&type=section&id=Business%20Review) As a comprehensive property management service provider for commercial properties, the Group continued to expand in first and second-tier cities and key regional markets in the first half of 2025, consolidating its advantages in commercial office and public building sectors, achieving significant growth in managed area and projects, with independent third-party projects contributing prominently - The Group has provided property management services for over **31 years**, with operations extending to **26** provinces and cities across **seven** major regions[14](index=14&type=chunk) - As of June 30, 2025, the managed area was approximately **49.59 million square meters**, a year-on-year increase of **12.8%**[14](index=14&type=chunk) - There were **391** managed projects, an increase of **65** year-on-year[14](index=14&type=chunk) - Non-residential property managed area was approximately **28.49 million square meters**, accounting for approximately **57.4%**[14](index=14&type=chunk) - In the first half of the year, newly added managed area from independent third-party projects accounted for **90.7%**[14](index=14&type=chunk) [Overview and Business Development](index=8&type=section&id=Overview%20and%20Business%20Development) The Group, as a leading comprehensive property management service provider for commercial properties, continues to deepen its presence in first and second-tier cities and key regional markets, excelling in commercial office and public building sectors, successfully expanding with new projects across various property types - The Group specializes in high-end property management services, with over **31 years** of experience[14](index=14&type=chunk) - Operations cover seven major regions: North China, Southwest, East China, South China, Northeast, Central China, and Northwest[14](index=14&type=chunk) - Newly added representative projects include the Huairou Party School and Disaster Recovery Center of China Development Bank, the Management Cadre College of the National Forestry and Grassland Administration, the Chinese People's Liberation Army Navy Museum, China Industrial and Commercial Bank Huaian Branch, and Hong Kong Fu Bao Garden project[15](index=15&type=chunk)[18](index=18&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk)[24](index=24&type=chunk) [Property Management and Related Services](index=11&type=section&id=Property%20Management%20and%20Related%20Services) As of June 30, 2025, the Group's property management and related services covered 26 provinces, municipalities, autonomous regions, and special administrative regions across seven major regions of China, with a total managed gross floor area of 49.59 million square meters and 391 managed properties, showing growth in both contracted and managed areas, with independent third-party projects exceeding 57% Managed Gross Floor Area and Number of Properties (as of June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Contracted Gross Floor Area (thousand square meters) | 50,892 | 45,912 | | Managed Gross Floor Area (thousand square meters) | 49,586 | 43,956 | | Number of Managed Properties | 391 | 326 | Managed Gross Floor Area and Number of Properties by Region (as of June 30, 2025) | Region | Managed Gross Floor Area (thousand square meters) | Number of Managed Properties | | :--- | :--- | :--- | | North China | 20,656 | 172 | | Southwest | 6,932 | 37 | | East China | 7,339 | 48 | | South China | 9,474 | 105 | | Northeast | 2,020 | 14 | | Central China | 1,566 | 9 | | Northwest | 1,599 | 6 | | **Total** | **49,586** | **391** | Managed Gross Floor Area and Number of Properties by Property Type (as of June 30, 2025) | Property Type | Managed Gross Floor Area (thousand square meters) | Percentage (%) | Number of Managed Properties | | :--- | :--- | :--- | :--- | | Retail Commercial Buildings and Hotels | 461 | 0.9 | 9 | | Office Buildings | 8,319 | 16.8 | 77 | | Integrated Complexes | 1,200 | 2.4 | 5 | | Residential Properties | 21,100 | 42.6 | 150 | | Public Properties, Hospitals, Educational Properties and Others | 18,506 | 37.3 | 150 | | **Total** | **49,586** | **100** | **391** | Managed Gross Floor Area by Revenue Model (as of June 30) | Revenue Model | 2025 (thousand square meters) | Percentage (%) | 2024 (thousand square meters) | Percentage (%) | | :--- | :--- | :--- | :--- | :--- | | Lump Sum Basis | 45,143 | 91.0 | 39,875 | 90.7 | | Commission Basis | 4,443 | 9.0 | 4,081 | 9.3 | | **Total** | **49,586** | **100** | **43,956** | **100** | Managed Gross Floor Area and Number of Properties by Property Developer (as of June 30) | Developer Type | 2025 (thousand square meters) | Percentage (%) | 2025 Number of Properties | 2024 (thousand square meters) | Percentage (%) | 2024 Number of Properties | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Financial Street Affiliated Group | 20,976 | 42.3 | 141 | 20,066 | 45.7 | 136 | | Independent Third Parties | 28,610 | 57.7 | 250 | 23,890 | 54.3 | 190 | | **Total** | **49,586** | **100** | **391** | **43,956** | **100** | **326** | [Value-Added Services](index=14&type=section&id=Value-Added%20Services) The Group's value-added services comprise six segments, including operational business, consulting services, asset operation, resource management, customized services, and other income, with its own brand "IZEE" covering property brokerage, lifestyle services, and business support, leveraging the "Financial Street Property Life Online" platform to enhance customer engagement - Value-added services consist of six segments: operational business, consulting services, asset operation, resource management, customized services, and other income[36](index=36&type=chunk) - Established its own value-added service brand "IZEE", covering property brokerage, lifestyle services, and business support[36](index=36&type=chunk) - Built the "Financial Street Property Life Online" platform to integrate smart operations with value-added services[36](index=36&type=chunk) [Future Outlook](index=15&type=section&id=Future%20Outlook) The Group will continue to prioritize service, consolidate and deepen its core advantages in commercial office and public building sectors, strengthen market expansion in core city clusters, enhance service quality through refined operations, standards improvement, and process optimization, and build a unique and competitive value-added service system for commercial properties to promote long-term healthy and stable development - Adhere to service-oriented principles, deepening core advantages in commercial office and public building sectors[37](index=37&type=chunk) - Focus on first and second-tier core city clusters, strengthening market expansion efforts[37](index=37&type=chunk) - Enhance customer satisfaction through refined operations, standards improvement, and process optimization[37](index=37&type=chunk) - Explore and build a unique and competitive value-added service system tailored for commercial property types[37](index=37&type=chunk) [Financial Review](index=15&type=section&id=Financial%20Review) The Group's revenue increased by 16.92% in the first half of 2025, primarily driven by property management services, but catering service revenue declined; cost of sales and services increased with business expansion, leading to a decrease in gross margin, while profit and total comprehensive income for the period slightly decreased due to market conditions, rising costs, and exchange losses, though the Group's financial position remains stable with sufficient cash and bank balances, despite increases in trade and other receivables and payables Key Financial Indicators Comparison (for the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 951,377 | 813,694 | +16.92% | | Cost of Sales and Services | (822,842) | (685,829) | +19.98% | | Gross Profit | 128,535 | 127,865 | +0.52% | | Gross Margin | 13.51% | 15.71% | -2.20pp | | Administrative Expenses | (42,657) | (37,983) | +12.32% | | Income Tax Expense | (22,171) | (20,848) | +6.35% | | Profit for the Period | 70,134 | 71,345 | -1.71% | | Total Comprehensive Income | 68,419 | 71,572 | -4.40% | - As of June 30, 2025, cash and bank balances were approximately **RMB1,603.17 million**, a decrease of approximately **RMB36.04 million** compared to December 31, 2024[48](index=48&type=chunk) - Net current assets were approximately **RMB1,151.26 million**, and the current ratio was approximately **2.13 times**[48](index=48&type=chunk) - Bills and trade receivables were approximately **RMB458.03 million**, an increase of **32.52%** compared to December 31, 2024[50](index=50&type=chunk) - Trade payables balance was approximately **RMB289.14 million**, an increase of **17.98%** compared to December 31, 2024[51](index=51&type=chunk) [Revenue](index=15&type=section&id=Revenue) The Group's revenue primarily derives from property management and related services, as well as catering services; for the six months ended June 30, 2025, total revenue increased by 16.92% to RMB951.38 million, driven by property management and value-added services, while catering service revenue decreased due to business model optimization Revenue Breakdown (for the six months ended June 30) | Service Type | 2025 (RMB thousand) | Percentage (%) | 2024 (RMB thousand) | Percentage (%) | Change (RMB thousand) | Change Rate (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Property Management Services | 765,341 | 80.45 | 631,968 | 77.67 | 133,373 | 21.10 | | Value-Added Services | 153,653 | 16.15 | 147,446 | 18.12 | 6,207 | 4.21 | | Leasing Services | 4,088 | 0.43 | 4,638 | 0.57 | (550) | (11.86) | | Catering Services | 28,295 | 2.97 | 29,642 | 3.64 | (1,347) | (4.54) | | **Total** | **951,377** | **100** | **813,694** | **100** | **137,683** | **16.92** | - Revenue from property management and related services increased by **17.73%**, primarily due to an increase in managed projects[39](index=39&type=chunk) - Catering service revenue decreased due to optimization and adjustment of the catering business model[40](index=40&type=chunk) [Cost of Sales and Services](index=16&type=section&id=Cost%20of%20Sales%20and%20Services) The Group's cost of sales and services, primarily comprising subcontracting costs, employee benefits, utilities, and raw materials, increased by 19.98% to RMB822.84 million for the six months ended June 30, 2025, reflecting business expansion - Cost of sales and services increased from **RMB685.83 million** in the first half of 2024 to **RMB822.84 million** in the first half of 2025, an increase of approximately **19.98%**[41](index=41&type=chunk) - Costs increased with business expansion[41](index=41&type=chunk) [Gross Profit and Gross Margin](index=16&type=section&id=Gross%20Profit%20and%20Gross%20Margin) The Group's overall gross profit increased by 0.52% to RMB128.54 million for the six months ended June 30, 2025, but the overall gross margin decreased by 2.20 percentage points to 13.51%, primarily due to market conditions and increased competition, despite an improvement in catering service gross margin Gross Profit and Gross Margin (for the six months ended June 30) | Service Type | 2025 Gross Profit (RMB thousand) | 2025 Gross Margin (%) | 2024 Gross Profit (RMB thousand) | 2024 Gross Margin (%) | Change Amount (RMB thousand) | Gross Margin Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Commercial Properties | 94,127 | 21.00 | 96,162 | 22.57 | (2,035) | (1.57) | | Non-Commercial Properties | 34,731 | 7.31 | 34,065 | 9.52 | 666 | (2.21) | | Catering Services | (323) | (1.14) | (2,362) | (7.97) | 2,039 | 6.83 | | **Total** | **128,535** | **13.51** | **127,865** | **15.71** | **670** | **(2.20)** | - Revenue continued to grow, but gross margin remained under pressure due to market conditions and increased competition[42](index=42&type=chunk) [Administrative Expenses](index=17&type=section&id=Administrative%20Expenses) The Group's administrative expenses increased by approximately 12.32% to RMB42.66 million for the six months ended June 30, 2025, primarily due to the expansion of business scale - Administrative expenses increased from **RMB37.98 million** in the first half of 2024 to **RMB42.66 million** in the first half of 2025, an increase of approximately **12.32%**[44](index=44&type=chunk) - Administrative expenses increased with the expansion of business scale[44](index=44&type=chunk) [Income Tax Expense](index=17&type=section&id=Income%20Tax%20Expense) The Group's income tax expense increased from RMB20.85 million in the first half of 2024 to RMB22.17 million in the first half of 2025, despite profit before tax remaining largely stable, due to varying applicable tax rates across companies and tax adjustments - Income tax expense increased from **RMB20.85 million** in the first half of 2024 to **RMB22.17 million** in the first half of 2025[45](index=45&type=chunk) - Profit before tax remained largely stable, with the slight increase in income tax expense influenced by varying applicable tax rates across companies and tax adjustments[45](index=45&type=chunk) [Profit for the Period](index=17&type=section&id=Profit%20for%20the%20Period) The Group's profit for the period decreased by approximately 1.71% to RMB70.13 million for the six months ended June 30, 2025, primarily due to market conditions, rigid cost increases, and a decline in gross margin, leading to lower profitability - Profit for the period decreased from **RMB71.35 million** in the first half of 2024 to **RMB70.13 million** in the first half of 2025, a decrease of approximately **1.71%**[46](index=46&type=chunk) - The decrease in profitability was mainly due to market conditions, rigid cost increases, and a decline in gross margin[46](index=46&type=chunk) [Total Comprehensive Income for the Period](index=17&type=section&id=Total%20Comprehensive%20Income%20for%20the%20Period) The Group's total comprehensive income for the period decreased by approximately 4.40% to RMB68.42 million for the six months ended June 30, 2025, primarily due to exchange losses from the translation of foreign currency financial statements - Total comprehensive income decreased from **RMB71.57 million** in the first half of 2024 to **RMB68.42 million** in the first half of 2025, a decrease of approximately **4.40%**[47](index=47&type=chunk) - The change was primarily due to exchange losses arising from the translation of foreign currency financial statements[47](index=47&type=chunk) [Liquidity, Capital Structure and Financial Resources](index=17&type=section&id=Liquidity,%20Capital%20Structure%20and%20Financial%20Resources) As of June 30, 2025, the Group's cash and bank balances were approximately RMB1,603.17 million, a decrease of RMB36.04 million from December 31, 2024; the Group maintained a stable financial position with net current assets of approximately RMB1,151.26 million and a current ratio of approximately 2.13 times, with no borrowings during the reporting period Liquidity Indicators (as of June 30) | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 1,603.17 | 1,639.21 | (36.04) | | Net Current Assets | 1,151.26 | 1,169.46 | (18.20) | | Current Ratio (times) | 2.13 | 2.31 | (0.18) | - As of June 30, 2025, the Group had no borrowings[49](index=49&type=chunk) [Bills and Trade Receivables and Other Financial Assets Measured at Amortized Cost](index=18&type=section&id=Bills%20and%20Trade%20Receivables%20and%20Other%20Financial%20Assets%20Measured%20at%20Amortized%20Cost) As of June 30, 2025, the Group's bills and trade receivables increased by 32.52% to approximately RMB458.03 million, mainly due to increased managed gross floor area and unexpired trade receivables; other financial assets measured at amortized cost increased by approximately RMB75.07 million to RMB155.78 million, primarily from finance lease receivables related to asset operation businesses Bills and Trade Receivables (as of June 30) | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Bills and Trade Receivables | 458.03 | 345.64 | +32.52% | - The increase was mainly due to increased trade receivables from property management services resulting from the increase in total managed gross floor area, and unexpired trade receivables[50](index=50&type=chunk) Other Financial Assets Measured at Amortized Cost (as of June 30) | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Total Other Financial Assets | 155.78 | 80.71 | +75.07 | - The increase was mainly due to finance lease receivables arising from undertaking asset operation businesses[50](index=50&type=chunk) [Trade and Other Payables](index=18&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, the Group's trade payables increased by 17.98% to approximately RMB289.14 million due to business expansion; salaries and welfare payables increased by 9.54% to RMB111.99 million due to accrued bonuses, and other payables increased by 0.81% to RMB326.35 million, reflecting normal business fluctuations Trade and Other Payables (as of June 30) | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Trade Payables | 289.14 | 245.07 | +17.98% | | Salaries and Welfare Payables | 111.99 | 102.24 | +9.54% | | Other Payables | 326.35 | 323.72 | +0.81% | - The increase in trade payables was mainly due to the expansion of business scale[51](index=51&type=chunk) - The increase in salaries and welfare payables was mainly due to the accrual of bonuses during the reporting period[51](index=51&type=chunk) [Use of Proceeds from Listing](index=19&type=section&id=Use%20of%20Proceeds%20from%20Listing) The net proceeds from the Company's H-share listing were approximately HKD710.48 million (equivalent to RMB648.36 million); the Board resolved to change the use of the unutilized portion to continue market expansion, joint ventures, and investment acquisitions; as of June 30, 2025, RMB191.49 million had been utilized, with RMB456.87 million unutilized, expected to be fully utilized by December 31, 2026 - The net proceeds from the listing were approximately **HKD710.48 million** (equivalent to approximately **RMB648.36 million**)[52](index=52&type=chunk) - The Board resolved to change the use of the unutilized portion of the net proceeds to continue market expansion, joint ventures, and investment acquisitions[52](index=52&type=chunk) Analysis of Use of Net Proceeds from Listing (as of June 30, 2025) | Use | Net Proceeds After Reallocation (RMB million) | Actual Utilized (RMB million) | Utilized During Reporting Period (RMB million) | Unutilized Net Proceeds (RMB million) | Expected Timeline for Full Utilization of Remaining Balance | | :--- | :--- | :--- | :--- | :--- | :--- | | Seeking strategic acquisition and investment opportunities and establishing new branches and subsidiaries to expand the Group's business scale | 517.87 | 142.89 | 0.16 | 374.98 | By December 31, 2026 | | Developing the Group's value-added services business | 49.12 | 40.63 | — | 8.49 | By December 31, 2026 | | Information technology and smart facility system construction and upgrade | 16.53 | 7.97 | 0.33 | 8.56 | By December 31, 2026 | | The Group's working capital and general corporate purposes | 64.84 | — | — | 64.84 | By December 31, 2026 | | **Total** | **648.36** | **191.49** | **0.49** | **456.87** | | [Pledge of Assets](index=20&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group had no assets pledged - As of June 30, 2025, the Group had no assets pledged[55](index=55&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=20&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries,%20Associates%20and%20Joint%20Ventures) For the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures[56](index=56&type=chunk) [Future Plans for Material Investments, Disposals and Capital Assets](index=20&type=section&id=Future%20Plans%20for%20Material%20Investments,%20Disposals%20and%20Capital%20Assets) For the six months ended June 30, 2025, the Group had no material investments, disposals, or additions to capital assets, nor any related plans - For the six months ended June 30, 2025, the Group had no material investments, disposals, or additions to capital assets, nor any related plans[57](index=57&type=chunk) [Gearing Ratio](index=20&type=section&id=Gearing%20Ratio) As of June 30, 2025, the Group's gearing ratio was 0.45, an increase from 0.41 as of December 31, 2024; the capital gearing ratio is not applicable as the Group had no interest-bearing borrowings Gearing Ratio (as of June 30) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gearing Ratio | 0.45 | 0.41 | - As of June 30, 2025, and December 31, 2024, the Group had no interest-bearing borrowings, thus the capital gearing ratio is not applicable[58](index=58&type=chunk) [Contingent Liabilities](index=20&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no contingent liabilities - As of June 30, 2025, the Group had no contingent liabilities[59](index=59&type=chunk) [Financial Policy](index=20&type=section&id=Financial%20Policy) The Group adopts a prudent financial management approach, maintaining a stable liquidity position throughout the year, with the Board closely monitoring liquidity to ensure the capital structure of assets, liabilities, and commitments meets funding requirements - The Group adopts a prudent financial management approach and has maintained a stable liquidity position throughout the year[60](index=60&type=chunk) - The Board closely monitors the Group's liquidity position to ensure that the liquidity structure of its assets, liabilities, and commitments can meet its funding requirements at all times[60](index=60&type=chunk) [Foreign Exchange Risk and Other Risks](index=20&type=section&id=Foreign%20Exchange%20Risk%20and%20Other%20Risks) Operating primarily in China and Hong Kong with transactions in RMB and HKD, the Group faces foreign exchange risk, currently without a hedging policy but with management monitoring and considering hedging; additionally, the property management industry's close ties to the macroeconomy and real estate sector expose the Group to external uncertainties, which it mitigates by enhancing service quality to boost competitiveness - The Group's business is primarily conducted in RMB and HKD in China and Hong Kong, facing foreign exchange risk[61](index=61&type=chunk) - The Group currently has no foreign currency hedging policy, but management closely monitors and considers hedging[62](index=62&type=chunk) - The property management industry is closely related to China's macroeconomic development and the real estate industry, and the Group may be affected by external environmental uncertainties[62](index=62&type=chunk) - The Group continuously strengthens service quality and enhances its competitiveness to minimize external risks[62](index=62&type=chunk) [Employees and Remuneration Policy](index=21&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group employed 5,283 staff, with remuneration based on performance, skills, knowledge, experience, and market trends, subject to regular review, including discretionary bonuses; the Group also provides training to enhance employee skills and production techniques - As of June 30, 2025, the Group employed **5,283** staff[63](index=63&type=chunk) - Employee remuneration is based on performance, skills, knowledge, experience, and market trends, and is reviewed regularly[63](index=63&type=chunk) - Employees may receive discretionary bonuses based on individual performance[63](index=63&type=chunk) - The Group provides training to employees to acquire basic skills and enhance production techniques for new employees[63](index=63&type=chunk) [Corporate Governance and Other Information](index=22&type=section&id=Corporate%20Governance%20and%20Other%20Information) This chapter details the company's corporate governance matters and compliance during the reporting period, including changes in the board composition, amendments to the articles of association, and changes in joint company secretaries; the company adheres to high standards of corporate governance, complying with the Listing Rules and the Model Code for Securities Transactions by Directors, and discloses interests of major shareholders, the audit committee's composition, and the decision not to declare an interim dividend - Board composition changed, with Ms. Lü Min, Mr. Meng Chunying, and Mr. Han Fengxiang appointed, while Ms. Xue Rui, Ms. Hu Yuxia, and Mr. Li Liang retired[64](index=64&type=chunk) - Certain clauses of the company's articles of association were approved for amendment by shareholders at the annual general meeting held on June 5, 2025[65](index=65&type=chunk) - Mr. Chen Xi resigned as joint company secretary, and Ms. Zhang Jing was appointed[66](index=66&type=chunk) - The company has complied with the code provisions set out in Appendix C1 to the Listing Rules, "Corporate Governance Code," during the reporting period[71](index=71&type=chunk) - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[81](index=81&type=chunk) [Significant Events](index=22&type=section&id=Significant%20Events) During the reporting period, the company's board of directors saw changes, with Ms. Lü Min appointed as an employee representative director, Mr. Meng Chunying and Mr. Han Fengxiang as non-executive directors, and Ms. Xue Rui, Ms. Hu Yuxia, and Mr. Li Liang retiring; amendments to the articles of association were approved, and there was a change in joint company secretaries, with no other significant events post-reporting period - Board composition changed, with Ms. Lü Min elected as an employee representative director, Mr. Meng Chunying and Mr. Han Fengxiang appointed as non-executive directors, and Ms. Xue Rui, Ms. Hu Yuxia, and Mr. Li Liang retiring as directors[64](index=64&type=chunk) - Certain clauses of the company's articles of association were approved for amendment by shareholders at the annual general meeting held on June 5, 2025[65](index=65&type=chunk) - Mr. Chen Xi resigned as joint company secretary, and Ms. Zhang Jing was appointed[66](index=66&type=chunk) - No other significant events occurred after the reporting period and up to the date of this report[67](index=67&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities or Redeemable Securities](index=23&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities%20or%20Redeemable%20Securities) For the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and as of June 30, 2025, the Company held no treasury shares - For the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[69](index=69&type=chunk) - As of June 30, 2025, the Company held no treasury shares[69](index=69&type=chunk) [Compliance with Corporate Governance Code](index=23&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Board is committed to achieving a high standard of corporate governance to meet stakeholders' needs and promote sustainable development, believing that good governance forms the foundation for effective management, business growth, and a healthy corporate culture; during the reporting period, the Company consistently complied with the code provisions of Appendix C1 to the Listing Rules, "Corporate Governance Code" - The Board is committed to achieving a high standard of corporate governance to meet the needs of the Group's stakeholders, build their confidence in the Group, and enable the Group's sustainable development[70](index=70&type=chunk) - During the reporting period, the Company consistently complied with the code provisions set out in Appendix C1 to the Listing Rules, "Corporate Governance Code"[71](index=71&type=chunk) [Compliance with Securities Dealing Code](index=23&type=section&id=Compliance%20with%20Securities%20Dealing%20Code) The Company has adopted Appendix C3 to the Listing Rules, "Model Code for Securities Transactions by Directors of Listed Issuers," as a code of conduct for all directors and supervisors regarding the Company's securities transactions; all directors and supervisors confirmed compliance during the reporting period, and no breaches by relevant management personnel or employees were noted - The Company has adopted Appendix C3 to the Listing Rules, "Model Code for Securities Transactions by Directors of Listed Issuers," as a code of conduct governing securities transactions by all directors and supervisors of the Company[72](index=72&type=chunk) - Following specific inquiries to all directors and supervisors, they confirmed compliance with the standard requirements set out in the Model Code during the reporting period[72](index=72&type=chunk) - The Company was not aware of any breaches of the Model Code by relevant personnel and employees during the reporting period[72](index=72&type=chunk) [Changes in Information of Directors and Senior Management](index=23&type=section&id=Changes%20in%20Information%20of%20Directors%20and%20Senior%20Management) During the reporting period, the Company had no changes in information of directors and senior management requiring disclosure under Rule 13.51B(1) of the Listing Rules - During the reporting period, the Company had no changes in information of directors and senior management requiring disclosure under Rule 13.51B(1) of the Listing Rules[73](index=73&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company](index=24&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company) As of June 30, 2025, none of the Company's directors or chief executive had any interests or short positions in the shares, underlying shares, or debentures of the Company or any of its associated corporations that were required to be disclosed to the Company and the Hong Kong Stock Exchange under Part XV of the Securities and Futures Ordinance, or recorded in the register referred to in that Ordinance, or notified to the Company and the Hong Kong Stock Exchange under the Model Code - As of June 30, 2025, none of the Company's directors or chief executive had any disclosable interests or short positions in the shares, underlying shares, or debentures of the Company or any of its associated corporations[74](index=74&type=chunk) [Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares and Underlying Shares of the Company](index=24&type=section&id=Substantial%20Shareholders'%20and%20Other%20Persons'%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares%20of%20the%20Company) As of June 30, 2025, substantial shareholders and other persons held interests or short positions in the Company's shares or underlying shares requiring disclosure or recording under Part XV of the Securities and Futures Ordinance, including Beijing Huarong Comprehensive Investment Co., Ltd. and its affiliates, Beijing Tiantai Real Estate Co., Ltd. and its affiliates, and Beijing Rongxin Hetai Enterprise Management Co., Ltd. as major domestic shareholders, and UBS Asset Management (Hong Kong) Ltd, UBS Group AG, Barings LLC, Northern Trust Fiduciary Services (Ireland) Limited, FIL Limited, Pandanus Associates Inc., Pandanus Partners L.P., FIDELITY FUNDS, and Liu Haiyan as major H-share shareholders Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares and Underlying Shares of the Company (as of June 30, 2025) | Shareholder Name | Share Class | Capacity | Number of Shares/Underlying Shares Held (shares) | Percentage of Relevant Share Class (%) | Percentage of Total Shares (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing Huarong Comprehensive Investment Co., Ltd. | Domestic Shares | Beneficial Owner | 128,299,270(L) | 47.52 | 34.35 | | Beijing Financial Street Investment (Group) Co., Ltd. | Domestic Shares | Interest in Controlled Corporation | 128,299,270(L) | 47.52 | 34.35 | | Beijing Financial Street Capital Operation Group Co., Ltd. | Domestic Shares | Interest in Controlled Corporation | 128,299,270(L) | 47.52 | 34.35 | | Beijing Tiantai Real Estate Co., Ltd. | Domestic Shares | Beneficial Owner | 79,620,438(L) | 29.49 | 21.32 | | China Life Real Estate Investment Management Co., Ltd. | Domestic Shares | Interest in Controlled Corporation | 79,620,438(L) | 29.49 | 21.32 | | China Life Investment Insurance Asset Management Co., Ltd. | Domestic Shares | Interest in Controlled Corporation | 79,620,438(L) | 29.49 | 21.32 | | China Life Insurance (Group) Company | Domestic Shares | Interest in Controlled Corporation | 79,620,438(L) | 29.49 | 21.32 | | Beijing Rongxin Hetai Enterprise Management Co., Ltd. | Domestic Shares | Beneficial Owner | 62,080,292(L) | 22.99 | 16.62 | | UBS Asset Management (Hong Kong) Ltd | H Shares | Investment Manager | 6,292,000(L) | 6.08 | 1.68 | | UBS Group AG | H Shares | Interest in Controlled Corporation | 17,547,268(L) | 16.95 | 4.70 | | Barings LLC | H Shares | Investment Manager | 6,972,000(L) | 6.73 | 1.87 | | Northern Trust Fiduciary Services (Ireland) Limited | H Shares | Trustee | 6,705,000(L) | 6.47 | 1.80 | | FIL Limited | H Shares | Interest in Controlled Corporation | 10,350,000(L) | 10.00 | 2.77 | | Pandanus Associates Inc. | H Shares | Interest in Controlled Corporation | 10,350,000(L) | 10.00 | 2.77 | | Pandanus Partners L.P. | H Shares | Interest in Controlled Corporation | 10,350,000(L) | 10.00 | 2.77 | | FIDELITY FUNDS | H Shares | Beneficial Owner | 5,532,000(L) | 5.34 | 1.48 | | Liu Haiyan | H Shares | Beneficial Owner | 7,280,000(L) | 7.03 | 1.95 | [Audit Committee](index=27&type=section&id=Audit%20Committee) The Company has established an Audit Committee in compliance with the Listing Rules and the Corporate Governance Code, comprising three members: Ms. Tong Yan (Chairperson), Mr. Guo Mingming, and Mr. Song Baocheng; the Committee has reviewed the unaudited interim results and interim report for the six months ended June 30, 2025, and the condensed consolidated interim financial statements have been reviewed by the independent auditor, Grant Thornton Hong Kong Limited - The Audit Committee consists of three members: Ms. Tong Yan (Chairperson), Mr. Guo Mingming, and Mr. Song Baocheng[80](index=80&type=chunk) - The Audit Committee has reviewed the unaudited interim results and interim report for the six months ended June 30, 2025[80](index=80&type=chunk) - The independent auditor, Grant Thornton Hong Kong Limited, has reviewed the condensed consolidated interim financial statements[80](index=80&type=chunk) [Interim Dividend](index=27&type=section&id=Interim%20Dividend) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[81](index=81&type=chunk) [Independent Review Report](index=28&type=section&id=Independent%20Review%20Report) Grant Thornton Hong Kong Limited reviewed the condensed consolidated interim financial statements of Financial Street Property Co., Ltd. and its subsidiaries for the six months ended June 30, 2025, in accordance with Hong Kong Standard on Review Engagements 2410; the review scope is less than an audit, thus no audit opinion is expressed, and based on the review, no matters were found to suggest that the condensed consolidated interim financial statements are not prepared in all material respects in accordance with Hong Kong Accounting Standard 34 - The auditor has reviewed the condensed consolidated interim financial statements in accordance with Hong Kong Standard on Review Engagements 2410[84](index=84&type=chunk) - The scope of a review is substantially less than that of an audit conducted in accordance with Hong Kong Standards on Auditing, and consequently, no audit opinion is expressed[84](index=84&type=chunk) - The auditor has not found anything that causes them to believe that the condensed consolidated interim financial statements are not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34[85](index=85&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=30&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's revenue was RMB951.38 million, a 16.92% year-on-year increase, but rising cost of sales and services led to a decrease in gross margin; profit for the period was RMB70.13 million, down 1.71% year-on-year, and total comprehensive income was RMB68.42 million, down 4.40% year-on-year, with basic earnings per share at RMB0.154 Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (for the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 951,377 | 813,694 | +16.92% | | Cost of Sales and Services | (822,842) | (685,829) | +19.98% | | Gross Profit | 128,535 | 127,865 | +0.52% | | Operating Profit | 86,689 | 86,969 | -0.32% | | Profit Before Income Tax | 92,305 | 92,193 | +0.12% | | Profit for the Period | 70,134 | 71,345 | -1.71% | | Profit Attributable to Owners of the Company for the Period | 57,607 | 63,467 | -9.10% | | Basic Earnings Per Share (RMB) | 0.154 | 0.170 | -9.39% | | Total Comprehensive Income for the Period | 68,419 | 71,572 | -4.40% | - Other comprehensive loss for the period mainly arose from exchange differences on translation of financial statements of overseas operations[89](index=89&type=chunk) [Condensed Consolidated Statement of Financial Position](index=32&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets were RMB2,484.79 million, a 6.67% increase from December 31, 2024, driven by a 17.97% rise in non-current assets due to increased investment properties and other financial assets measured at amortized cost, and a 5.20% increase in current assets, notably bills and trade receivables; total equity was RMB1,375.91 million, and total liabilities were RMB1,108.88 million, up 15.46% from year-end Summary of Condensed Consolidated Statement of Financial Position (as of June 30) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Non-Current Assets | 315,962 | 267,829 | +17.97% | | Total Current Assets | 2,168,829 | 2,061,672 | +5.20% | | **Total Assets** | **2,484,791** | **2,329,501** | **+6.67%** | | Total Equity | 1,375,912 | 1,369,073 | +0.50% | | Total Non-Current Liabilities | 91,311 | 68,213 | +33.85% | | Total Current Liabilities | 1,017,568 | 892,215 | +14.05% | | **Total Liabilities** | **1,108,879** | **960,428** | **+15.46%** | - Investment properties increased to **RMB32.28 million**, while property, plant and equipment decreased to **RMB43.48 million**[91](index=91&type=chunk) - Bills and trade receivables increased to **RMB458.03 million**[91](index=91&type=chunk) - Trade and other payables (current) increased to **RMB844.90 million**[92](index=92&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=34&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, total equity attributable to owners of the Company was RMB1,295.63 million, a slight decrease from the beginning of the period; profit for the period was RMB57.61 million, but dividends declared of RMB58.64 million and other comprehensive losses led to a small reduction in total equity, while non-controlling interests increased Summary of Condensed Consolidated Statement of Changes in Equity (for the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Balance at January 1, 2025 (Attributable to Owners of the Company) | 1,297,861 | 1,245,824 | | Profit for the Period (Attributable to Owners of the Company) | 57,607 | 63,467 | | Total Comprehensive Income/(Loss) for the Period (Attributable to Owners of the Company) | 56,407 | 63,592 | | Dividends Declared (Attributable to Owners of the Company) | (58,640) | (64,616) | | Balance at June 30, 2025 (Attributable to Owners of the Company) | 1,295,628 | 1,244,800 | | Non-Controlling Interests (End of Period) | 80,284 | 54,484 | | Total Equity (End of Period) | 1,375,912 | 1,299,284 | - Dividends declared of **RMB58.64 million** led to a decrease in retained earnings attributable to owners of the Company[94](index=94&type=chunk) - Exchange reserve decreased due to other comprehensive loss for the period[94](index=94&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=35&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash used in operating activities was RMB(22.30) million, a deterioration from net cash generated of RMB36.45 million in the prior year; net cash generated from investing activities was RMB8.41 million, and net cash used in financing activities was RMB(19.29) million, resulting in a decrease in cash and cash equivalents to RMB1,424.37 million at period-end Summary of Condensed Consolidated Statement of Cash Flows (for the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Cash (Used in)/Generated from Operating Activities | (22,297) | 36,453 | | Net Cash Generated from Investing Activities | 8,413 | 68,209 | | Net Cash Used in Financing Activities | (19,287) | (17,547) | | Net (Decrease)/Increase in Cash and Cash Equivalents | (33,171) | 87,115 | | Cash and Cash Equivalents at End of Period | 1,424,365 | 1,403,839 | - Operating cash flow shifted from net inflow to net outflow, mainly due to decreased cash generated from operations and increased income tax paid[95](index=95&type=chunk) - Net cash generated from investing activities significantly decreased, primarily due to an increase in bank deposits with maturities over three months reducing cash inflow, and dividend income from associates in the prior period[95](index=95&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=36&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This chapter provides detailed notes to the condensed consolidated interim financial statements, covering the basis of preparation, accounting policy revisions, key accounting estimates and judgments, financial risk management, segment information, revenue composition, other income and gains, finance income, income tax expense, dividends, earnings per share, investment properties and property, plant and equipment, interests in associates and joint ventures, bills and trade receivables, other financial assets, share capital, reserves, and trade and other payables, along with disclosures on related party transactions and balances - The condensed consolidated interim financial statements are prepared in accordance with the applicable disclosure requirements of the Listing Rules of the Stock Exchange and Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants[99](index=99&type=chunk) - For the six months ended June 30, 2025, there was only one operating segment[106](index=106&type=chunk) - For the six months ended June 30, 2025, transactions with Financial Street Affiliated Group accounted for **6%** of the Group's revenue (2024: 9%)[107](index=107&type=chunk) - Expected credit loss provision for trade receivables increased by **RMB4.095 million** during the period[114](index=114&type=chunk)[131](index=131&type=chunk) - As of June 30, 2025, the present value of finance lease receivables was **RMB77.10 million**, a significant increase from **RMB16.97 million** as of December 31, 2024[132](index=132&type=chunk)[134](index=134&type=chunk) [Basis of Preparation of Interim Financial Statements](index=36&type=section&id=Basis%20of%20Preparation%20of%20Interim%20Financial%20Statements) The condensed consolidated interim financial statements for the six months ended June 30, 2025, are prepared in accordance with the applicable disclosure requirements of the Listing Rules of the Stock Exchange and Hong Kong Accounting Standard 34 "Interim Financial Reporting"; the Group adopted revised Hong Kong Financial Reporting Standards effective January 1, 2025, with no significant impact on results or financial position - The condensed consolidated interim financial statements are prepared in accordance with the applicable disclosure requirements of the Listing Rules of the Stock Exchange and Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants[99](index=99&type=chunk) - Revised Hong Kong Financial Reporting Standards effective January 1, 2025, have been adopted, but are not expected to have any significant impact on the preparation and presentation of the Group's results and financial position for the current and prior periods[101](index=101&type=chunk)[102](index=102&type=chunk) [Critical Accounting Estimates and Judgements](index=37&type=section&id=Critical%20Accounting%20Estimates%20and%20Judgements) In preparing the interim financial statements, management is required to make judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income, and expenses; the significant judgments and key sources of estimation uncertainty made in these condensed consolidated interim financial statements are the same as those applied in the consolidated financial statements for the year ended December 31, 2024 - In preparing the interim financial statements, management is required to make judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income, and expenses[103](index=103&type=chunk) - Critical accounting estimates and judgments are the same as those applied in the consolidated financial statements for the year ended December 31, 2024[103](index=103&type=chunk) [Financial Risk Management](index=37&type=section&id=Financial%20Risk%20Management) The Group's activities are exposed to various financial risks, including market risk (foreign exchange risk and interest rate risk), credit risk, and liquidity risk; there have been no significant changes in the Group's risk management policies since the year ended December 31, 2024 - The Group's activities are exposed to various financial risks: market risk (including foreign exchange risk and interest rate risk), credit risk, and liquidity risk[104](index=104&type=chunk) - There have been no significant changes in the Group's risk management policies since the year ended December 31, 2024[105](index=105&type=chunk) [Segments](index=38&type=section&id=Segments) The Board, as the chief operating decision-maker, identifies operating segments for resource allocation and performance assessment; for the six months ended June 30, 2025 and 2024, the Group was primarily engaged in providing property management and related services in China and Hong Kong, and the Board considers there to be only one operating segment - For the six months ended June 30, 2025 and 2024, the Group was primarily engaged in providing property management and related services in China and Hong Kong[106](index=106&type=chunk) - The Board considers that, in accordance with Hong Kong Financial Reporting Standard 8, there was only one operating segment for the six months ended June 30, 2025 and 2024[106](index=106&type=chunk) [Revenue](index=38&type=section&id=Revenue) For the six months ended June 30, 2025, the Group's total revenue was RMB951.38 million, primarily from property management and related services (including lump sum and commission-based property management services, community value-added services), as well as catering services and rental income; mainland China contributed the vast majority of external revenue, and transactions with Financial Street Affiliated Group accounted for 6% of the Group's revenue Revenue Sources Breakdown (for the six months ended June 30) | Revenue Source | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Property Management Service Revenue Recognized on a Lump Sum Basis | 754,157 | 623,463 | | Property Management Service Revenue Recognized on a Commission Basis | 11,184 | 8,505 | | Community Value-Added Services | 153,653 | 147,446 | | Catering Services | 28,295 | 29,642 | | Rental Income | 4,088 | 4,638 | | **Total** | **951,377** | **813,694** | External Revenue by Region (for the six months ended June 30) | Region | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Mainland China | 869,352 | 755,186 | | Hong Kong | 82,025 | 58,508 | | **Total** | **951,377** | **813,694** | - For the six months ended June 30, 2025, transactions with Financial Street Affiliated Group accounted for **6%** of the Group's revenue (2024: 9%)[107](index=107&type=chunk) [Other Income](index=40&type=section&id=Other%20Income) For the six months ended June 30, 2025, the Group's other income was RMB251 thousand, primarily from government grants, a decrease compared to RMB928 thousand in the same period of 2024 Other Income Breakdown (for the six months ended June 30) | Income Type | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Government Grants | 251 | 867 | | Recognized VAT Input Deduction | — | 61 | | **Total** | **251** | **928** | - Government grants are discretionary receipts from local Chinese government authorities for local business development and employment[110](index=110&type=chunk) [Other Gains/(Losses), Net](index=40&type=section&id=Other%20Gains/(Losses),%20Net) For the six months ended June 30, 2025, the Group recorded net other gains of RMB6,397 thousand, primarily from gains on disposal of right-of-use assets, a significant improvement from a net loss of RMB36 thousand in the same period of 2024 Other Gains/(Losses), Net (for the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Gain on Disposal of Right-of-Use Assets | 6,413 | — | | Net Loss on Derecognition upon Early Lease Termination | — | (29) | | Net Loss on Disposal of Property, Plant and Equipment | (57) | (82) | | Others | 41 | 75 | | **Total** | **6,397** | **(36)** | [Finance Income, Net](index=41&type=section&id=Finance%20Income,%20Net) For the six months ended June 30, 2025, the Group's net finance income was RMB5,564 thousand, a slight decrease from RMB5,794 thousand in the same period of 2024; finance income mainly comprised interest from bank deposits, interest income from fellow subsidiaries, and finance lease interest income, while finance costs primarily included interest expense on lease liabilities and imputed interest expense on consideration payable related to subsidiary acquisitions Finance Income, Net (for the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest Income from Bank Deposits | 4,302 | 5,251 | | Interest Income from a Fellow Subsidiary | 2,706 | 1,997 | | Interest Income from Finance Leases | 1,208 | 538 | | Interest Expense on Lease Liabilities | (1,960) | (1,378) | | Imputed Interest Expense on Consideration Payable Related to Acquisition of a Subsidiary | (644) | (614) | | Net Interest Expense on Retirement Benefit Obligations | (48) | — | | **Finance Income, Net** | **5,564** | **5,794** | [Profit Before Income Tax](index=42&type=section&id=Profit%20Before%20Income%20Tax) For the six months ended June 30, 2025, the Group's profit before income tax was RMB92.31 million, largely consistent with RMB92.19 million in the same period of 2024; this profit calculation includes staff costs, cleaning, security and maintenance service costs, depreciation, amortization of intangible assets, expected credit loss provisions, catering service raw material costs, lease expenses, and professional service fees Profit Before Income Tax Components (for the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Staff Costs — Included in Cost of Sales and Services | 308,676 | 275,387 | | Staff Costs — Included in Administrative Expenses | 25,608 | 22,228 | | Cleaning, Security and Maintenance Service Costs | 407,861 | 306,413 | | Depreciation of Property, Plant and Equipment | 12,474 | 12,571 | | Depreciation of Investment Properties | 4,359 | 2,752 | | Amortization of Intangible Assets | 1,944 | 1,722 | | Expected Credit Loss Provision for Trade Receivables | 4,095 | 4,001 | | Expected Credit Loss Provision for Other Financial Assets Measured at Amortized Cost | 1,742 | (196) | | Cost of Raw Materials and Consumables Used in Catering Services | 14,509 | 16,736 | | Short-Term Lease Expenses | 3,578 | 3,800 | | Lease Expenses for Low-Value Items | 3,912 | 3,725 | | Professional Service Fees | 1,871 | 2,866 | | Taxes and Surcharges | 4,326 | 3,596 | | Auditor's Remuneration — Audit Services | 521 | 521 | | Exchange Loss/(Gain), Net | 2 | (3) | [Income Tax Expense](index=43&type=section&id=Income%20Tax%20Expense) For the six months ended June 30, 2025, the Group's income tax expense increased to RMB22.17 million from RMB20.85 million in the prior year; China's corporate income tax rate is 25%, with some small and micro enterprises enjoying a 5% preferential rate and Chongqing Jiangbeizui Property Service Co., Ltd. benefiting from a 15% preferential rate under the Western Development policy, while Hong Kong profits tax is calculated at 16.5%, with a two-tiered tax system for eligible entities Income Tax Expense Breakdown (for the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | China Corporate Income Tax | 25,360 | 31,494 | | Hong Kong Profits Tax | 1,804 | 805 | | Deferred Tax | (4,993) | (11,451) | | **Total Income Tax Expense** | **22,171** | **20,848** | - The general corporate income tax rate in China is **25%**[117](index=117&type=chunk) - Some small and micro enterprises are approved to enjoy a preferential income tax rate of **5%**[117](index=117&type=chunk) - Chongqing Jiangbeizui Property Service Co., Ltd. qualifies for the Western Development income tax preferential policy and enjoys a preferential income tax rate of **15%**[117](index=117&type=chunk) - Hong Kong profits tax provision is calculated at **16.5%** of the estimated assessable profits for the period, with a two-tiered tax system applicable to certain eligible entities[118](index=118&type=chunk) [Dividends](index=44&type=section&id=Dividends) The Board recommended a dividend distribution of RMB58.64 million on March 27, 2025, which was approved at the shareholders' meeting on June 5, 2025; the Board resolved not to declare an interim dividend for the six months ended June 30, 2025 - At the Board meeting on March 27, 2025, a dividend distribution of **RMB58,640,000** was proposed and approved at the shareholders' meeting on June 5, 2025[119](index=119&type=chunk) - The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025[120](index=120&type=chunk) [Earnings Per Share](index=44&type=section&id=Earnings%20Per%20Share) For the six months ended June 30, 2025, basic earnings per share decreased to RMB0.154 from RMB0.170 in the prior year; diluted earnings per share were the same as basic earnings per share as the Group had no potential dilutive ordinary shares during the reporting period Basic Earnings Per Share (for the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit Attributable to Owners of the Company (RMB thousand) | 57,607 | 63,467 | | Weighted Average Number of Ordinary Shares Issued (thousand shares) | 373,500 | 373,500 | | **Basic Earnings Per Share (RMB)** | **0.154** | **0.170** | - As the Group had no potential dilutive ordinary shares for the six months ended June 30, 2025 and 2024, diluted earnings per share were the same as basic earnings per share[123](index=123&type=chunk) [Investment Properties and Property, Plant and Equipment](index=45&type=section&id=Investment%20Properties%20and%20Property,%20Plant%20and%20Equipment) As of June 30, 2025, the net book value of investment properties increased to RMB32.28 million, while the net book value of property, plant and equipment decreased to RMB43.48 million; additions to investment properties during the period amounted to RMB6.26 million, and additions to property, plant and equipment were RMB4.47 million Net Book Value of Investment Properties and Property, Plant and Equipment (as of June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Book Value of Investment Properties | 32,282 | 34,106 | | Net Book Value of Property, Plant and Equipment | 43,480 | 46,133 | - Additions to investment properties during the period amounted to **RMB6,260 thousand**[124](index=124&type=chunk) - Additions to property, plant and equipment during the period amounted to **RMB4,474 thousand**[124](index=124&type=chunk) [Interests in Associates](index=47&type=section&id=Interests%20in%20Associates) As of June 30, 2025, the Group's interests in associates increased slightly to RMB7.55 million; profit attributable to associates after acquisition for the period was RMB26 thousand Changes in Interests in Associates (for the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Beginning of Period | 7,526 | 16,204 | | Share of Post-Acquisition Profit/(Loss) and Other Comprehensive Loss, Net of Dividends Received | 26 | (6,310) | | **End of Period** | **7,552** | **9,894** | [Interests in Joint Ventures](index=47&type=section&id=Interests%20in%20Joint%20Ventures) As of June 30, 2025, the Group's interests in joint ventures increased slightly to RMB2.89 million; profit attributable to joint ventures after acquisition for the period was RMB28 thousand Changes in Interests in Joint Ventures (for the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Beginning of Period | 2,857 | 2,552 | | Share of Post-Acquisition Profit and Other Comprehensive Income, Net of Dividends Received | 28 | 153 | | **End of Period** | **2,885** | **2,705** | [Bills and Trade Receivables](index=48&type=section&id=Bills%20and%20Trade%20Receivables) As of June 30, 2025, the Group's net bills and trade receivables significantly increased to RMB458.03 million from December 31, 2024; trade receivables (before loss allowance) were RMB492.85 million, mainly from third parties, with most amounts due within one year; an expected credit loss provision of RMB4.095 million was recognized during the period Bills and Trade Receivables (as of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables (Related Parties) | 112,848 | 110,745 | | Trade Receivables (Third Parties) | 380,002 | 268,406 | | Less: Expected Credit Loss Provision for Trade Receivables | (37,350) | (33,511) | | Trade Receivables, Net | 455,500 | 345,640 | | Bills Receivable | 2,532 | — | | **Bills and Trade Receivables, Net** | **458,032** | **345,640** | - The credit period granted to trade customers r

Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income 簡明綜合損益及其他全面收益表 For the six months ended 30 June 2025 截至二零二五年六月三十日止六個月 The board of directors (the "Board" or "Directors") of China Healthwise Holdings Limited (the "Company") is pleased to announce the unaudited condensed consolidated results of the Company and its subsidiaries (together the "Group") for the six months ended 30 June 2025 together with the comparative figures for the corresponding period for the six months ende ...

Million Cities Holdings Limited 萬 城 控股有 限 公 司 （於開曼群島註冊成立的有限公司） (Incorporated in the Cayman Islands with limited liability) Stock code 股份代號 : 2892 INTERIM REPORT 中期報告 Address 地址：Unit D, 21/F., Block 1, Tai Ping Industrial Centre, 57 Ting Kok Road, Tai Po, New Territories, Hong Kong 香港新界大埔汀角路 57 號太平工業中心第一座 21 樓 D 室 Tel 電話：（852）2689-1999 Fax 傳真：（852）2689-1882 Address 地址：6/F, Block 5, 8 Longhe East Road, Huicheng District, Huizhou City, Guangdong, China 中國廣東省惠州市惠城區龍和東路 8 號第 5 座 6 樓 Tel 電話：（86）752-331-6668 Fax 傳 ...