普星能量有限公司 PUXING ENERGY LIMITED 2025 INTERIM REPORT 中期報告 www.puxing-energy.com P U X I N G E N E R G Y L I M I T E D 普星能量有限公司 40/F., Dah Sing Financial Centre 248 Queen's Road East, Wanchai, Hong Kong 香港灣仔皇后大道東248號 大新金融中心40樓 Contents 目錄 | 02 | Corporate Information | | --- | --- | | | 公司資料 | | 05 | Financial Highlights | | | 財務摘要 | | 07 | Consolidated Statement of Profit or Loss | | | 綜合損益表 | | 09 | Consolidated Statement of Profit or Loss and Other Comprehensive Income | | | 綜合損益及其他全面收入表 | | 10 | Consolidat ...

CORPORATE INFORMATION [Board of Directors](index=3&type=section&id=Board%20of%20Directors) The company's Board of Directors comprises a Chairman, Executive Directors, Non-executive Directors, and Independent Non-executive Directors, supported by Audit, Remuneration, and Nomination Committees to ensure sound corporate governance - The Board Chairman is **Mr. Wang Hai**, with Executive Directors including Mr. Wang Hai and Chief Executive Officer **Mr. Wang Zuomin**[6](index=6&type=chunk)[7](index=7&type=chunk) - Independent Non-executive Directors include **Ms. Li Lihua, Mr. Mei Yihe, and Dr. Xie Wensi**[6](index=6&type=chunk)[7](index=7&type=chunk) - **Mr. Mei Yihe** chairs the Audit Committee, **Ms. Li Lihua** chairs the Remuneration Committee, and **Mr. Wang Hai** chairs the Nomination Committee[6](index=6&type=chunk)[7](index=7&type=chunk) [Shareholder and Company Contact Information](index=4&type=section&id=Shareholder%20Information%20Online) The company provides an online shareholder information platform and lists key contact details for authorized representatives, company secretary, share registrar, registered office, and principal place of business - The company website **www.gwpaholdings.com** provides the latest financial and corporate communications information[8](index=8&type=chunk)[9](index=9&type=chunk) - **Mr. Wang Zuomin** and **Ms. Fu Manyi** are authorized representatives, with Ms. Fu Manyi also serving as the Company Secretary[8](index=8&type=chunk)[9](index=9&type=chunk)[10](index=10&type=chunk) - The company's shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited, stock code **00583**[11](index=11&type=chunk)[12](index=12&type=chunk) MANAGEMENT DISCUSSION AND ANALYSIS [Group Operating Results](index=6&type=section&id=Operating%20Results%20of%20the%20Group) For the six months ended June 30, 2025, the Group turned from profit to loss, recording a loss attributable to equity holders of 280.1 million HKD, primarily due to fair value losses on investment properties and share of loss from an associate 2025 First Half Consolidated Operating Results Overview | Indicator | 2025 First Half (million HKD) | 2024 First Half (million HKD) | Change Percentage | | :--- | :--- | :--- | :--- | | Revenue | 58.2 | 60.9 | (4.4%) | | Adjusted Operating Profit^ | 23.9 | 36.4 | (34.3%) | | Fair Value (Loss)/Gain on Investment Properties | (88.8) | 78.8 | ** | | Operating (Loss)/Profit | (64.4) | 115.3 | ** | | Net Finance Costs | (142.1) | (173.1) | (17.9%) | | Share of (Loss)/Profit of an Associate | (70.8) | 64.8 | ** | | (Loss)/Profit Before Income Tax | (277.3) | 7.0 | ** | | (Loss)/Profit for the Period | (280.1) | 4.5 | ** | | (Loss)/Profit Attributable to Equity Holders | (280.1) | 4.5 | ** | | (Loss)/Earnings Per Share (HK cents) | (17.9) | 0.3 | ** | - For the six months ended June 30, 2025, the **loss attributable to equity holders was 280.1 million HKD**, a significant turnaround from a profit of 4.5 million HKD in the prior period[18](index=18&type=chunk)[19](index=19&type=chunk) - **Loss per share was 17.9 HK cents**, compared to earnings per share of 0.3 HK cents in the prior period[18](index=18&type=chunk)[19](index=19&type=chunk) - The loss was primarily attributed to a **fair value loss on investment properties of 88.8 million HKD** and a **share of loss from an associate of 70.8 million HKD**[18](index=18&type=chunk)[19](index=19&type=chunk)[21](index=21&type=chunk)[24](index=24&type=chunk) [Business Review](index=7&type=section&id=Business%20Review) The Group primarily operates in property investment and financial services segments, with property investment facing challenges and declining revenue in the first half, while the financial services segment generated no revenue - The Group primarily engages in the **property investment segment** and the **financial services segment**[22](index=22&type=chunk)[25](index=25&type=chunk) - The property investment segment contributed to the results for the six months ended June 30, 2025, with no significant changes in the investment property portfolio, which includes diverse properties such as Kwai Fong Plaza and several floors of Bank of America Tower[23](index=23&type=chunk)[25](index=25&type=chunk) - In the first half of 2025, the investment property business faced challenges amid an uncertain economic backdrop, with the Group focusing on maintaining the stability of its existing investment property portfolio, collaborating with tenants, and improving its balance sheet[26](index=26&type=chunk)[28](index=28&type=chunk) - The financial services segment includes providing asset management services (licensed by the SFC for Type 9 regulated activities), and the Group will continue to explore and seize development opportunities[31](index=31&type=chunk)[32](index=32&type=chunk) [Revenue Analysis](index=9&type=section&id=Revenue) For the six months ended June 30, 2025, the Group's total consolidated revenue was 58.2 million HKD, a 4.4% year-on-year decrease, mainly due to reduced revenue from the property investment segment, while the financial services segment generated no revenue Consolidated Revenue by Business Segment | Business Segment | 2025 First Half (million HKD) | 2024 First Half (million HKD) | Change Percentage | | :--- | :--- | :--- | :--- | | Property Investment | 58.2 | 60.9 | (4.4%) | | Financial Services | – | – | – | | **Total Revenue** | **58.2** | **60.9** | **(4.4%)** | - **Total revenue decreased by 4.4% to 58.2 million HKD**, primarily due to reduced revenue from the property investment segment[26](index=26&type=chunk)[28](index=28&type=chunk)[34](index=34&type=chunk) - The financial services segment generated **no revenue** in both the first half of 2025 and 2024[34](index=34&type=chunk) [Financial Review By Operating Segments](index=10&type=section&id=Financial%20Review%20By%20Operating%20Segments) The property investment segment's revenue decreased by 4.4%, but adjusted EBITDA grew by 9.4%, primarily impacted by reduced rental income from Bank of America Tower in Central and a fair value loss of 88.8 million HKD on investment properties due to Hong Kong's challenging real estate market, while the financial services segment generated no revenue - The Group's reportable and operating segments include the **property investment segment** and the **financial services segment**[35](index=35&type=chunk)[36](index=36&type=chunk)[40](index=40&type=chunk) [Property Investment Segment](index=10&type=section&id=Property%20Investment%20Segment) The property investment segment's revenue decreased by 4.4% to 58.2 million HKD, mainly due to reduced income from new lease agreements at Bank of America Tower in Central, with investment property fair value turning from a gain to a loss of 88.8 million HKD, reflecting challenges in the Hong Kong real estate market Property Investment Segment Financial Performance | Indicator | 2025 First Half (million HKD) | 2024 First Half (million HKD) | Change Percentage | | :--- | :--- | :--- | :--- | | Revenue | 58.2 | 60.9 | (4.4%) | | Adjusted EBITDA^ | 35.0 | 32.0 | 9.4% | | Revaluation Loss from Transfer of Property, Plant and Equipment to Investment Property | (12.4) | – | ** | | Adjusted Operating Profit | 20.0 | 28.9 | (30.8%) | | Fair Value (Loss)/Gain on Investment Properties and Other Income | (88.3) | 86.2 | ** | | (Loss)/Profit Attributable to Equity Holders | (92.2) | 83.8 | ** | - Property investment segment revenue was **58.2 million HKD**, a **4.4% decrease** compared to the first half of 2024, primarily due to reduced revenue from new lease agreements for certain floors at Bank of America Tower in Central[42](index=42&type=chunk)[45](index=45&type=chunk) - The **fair value loss on investment properties was 88.8 million HKD**, compared to a fair value gain of 78.8 million HKD in the first half of 2024, reflecting the challenges faced by the Hong Kong real estate market in early 2025[27](index=27&type=chunk)[29](index=29&type=chunk)[43](index=43&type=chunk)[45](index=45&type=chunk) - As of June 30, 2025, the capitalization rates used in the income capitalization approach for investment properties ranged from **2.00% to 5.00%**, with a decrease in rental rates (retail shops from HKD 63.9/sq.ft. to HKD 62.0/sq.ft., office buildings from HKD 55.0-71.0/sq.ft. to HKD 44.0-70.0/sq.ft., industrial buildings from HKD 16.0-27.0/sq.ft. to HKD 16.0-24.0/sq.ft.)[27](index=27&type=chunk)[29](index=29&type=chunk)[42](index=42&type=chunk)[171](index=171&type=chunk)[172](index=172&type=chunk)[176](index=176&type=chunk) [Financial Services Segment](index=12&type=section&id=Financial%20Services%20Segment) The financial services segment generated no revenue in both the first half of 2025 and 2024, despite being licensed by the SFC for asset management activities Financial Services Segment Financial Performance | Indicator | 2025 First Half (million HKD) | 2024 First Half (million HKD) | Change Percentage | | :--- | :--- | :--- | :--- | | Revenue | – | – | – | | Adjusted EBITDA^ | – | (6.2) | ** | | Adjusted Operating Loss | – | (6.2) | ** | | Loss Attributable to Equity Holders | – | (6.2) | ** | - The financial services segment generated **no revenue** in both the first half of 2025 and 2024[47](index=47&type=chunk)[48](index=48&type=chunk) [Significant Investment in an Associate and Share of Profit or Loss](index=13&type=section&id=Significant%20Investment%20in%20relation%20to%20the%20Investment%20in%20an%20Associate%20and%20Share%20of%20Profit%20or%20Loss%20of%20an%20Associate) The Group holds a 35.78% equity interest in the joint venture Everwell City Limited, with the investment's fair value at 5,336.5 million HKD as of June 30, 2025, representing approximately 56.27% of the Group's total assets, and recorded a share of loss from the associate of approximately 70.8 million HKD in the first half, mainly due to increased finance costs and revaluation losses on investment properties - The Group holds a **35.78% equity interest** in the joint venture Everwell City Limited, which owns 16 diversified commercial properties, shopping centers, plazas, and car parks in Hong Kong[49](index=49&type=chunk)[50](index=50&type=chunk) - As of June 30, 2025, the **fair value of this investment was 5,336.5 million HKD** (June 30, 2024: 5,433.7 million HKD), representing **56.27% of the Group's total assets** (June 30, 2024: 56.70%)[49](index=49&type=chunk)[50](index=50&type=chunk) - In the first half of 2025, the Group's **share of loss from the associate was approximately 70.8 million HKD**, compared to a profit of 64.8 million HKD in the prior period[49](index=49&type=chunk)[50](index=50&type=chunk) - The loss was primarily due to **increased finance costs** and **revaluation losses on the joint venture's investment properties**, attributed to the challenging Hong Kong real estate market in early 2025[49](index=49&type=chunk)[50](index=50&type=chunk) - The Group currently plans to hold its equity interest in the joint venture as a **long-term investment** to generate sustainable returns for shareholders[49](index=49&type=chunk)[50](index=50&type=chunk) [Liquidity and Capital Resources](index=14&type=section&id=Liquidity%20And%20Capital%20Resources) As of June 30, 2025, the Group's cash and bank balances increased to 247.9 million HKD, but the gearing ratio rose to 59.6% due to reduced shareholders' equity from fair value losses on investment properties and share of loss from an associate, while net cash flow from operating activities increased, and net cash flow from investing activities primarily came from associate dividends, with reduced cash outflow from financing activities Liquidity and Capital Resources Overview | Indicator | June 30, 2025 (million HKD) | December 31, 2024 (million HKD) | Change Percentage | | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 247.9 | 209.3 | 18.4% | | Shareholders' Equity | 3,637.4 | 3,917.4 | (7.1%) | | Current Ratio | 0.05 | 0.04 | 25.0% | | Gearing Ratio | 59.6% | 58.0% | 2.8% | - As of June 30, 2025, the Group's **total cash and bank balances were approximately 247.9 million HKD**, an increase from 209.3 million HKD as of December 31, 2024[53](index=53&type=chunk)[55](index=55&type=chunk) - The **gearing ratio increased to 59.6%** (December 31, 2024: 58.0%), primarily due to a decrease in shareholders' equity resulting from fair value losses on investment properties and share of loss from an associate[53](index=53&type=chunk)[55](index=55&type=chunk) - As of June 30, 2025, the Group had **outstanding unsecured shareholder loans of 5,610.0 million HKD** (December 31, 2024: 4,760.0 million HKD) and **available unutilized bank facilities of approximately 850.0 million HKD**[53](index=53&type=chunk)[55](index=55&type=chunk) - For the six months ended June 30, 2025, **net cash generated from operating activities was 38.1 million HKD**, **net cash generated from investing activities was 18.8 million HKD** (primarily from dividends from an associate of 17.9 million HKD), and **net cash used in financing activities was 18.3 million HKD**[58](index=58&type=chunk)[59](index=59&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk) [Employees and Remuneration Policy](index=16&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 10 employees, with a remuneration policy designed to recognize and reward excellent performance, motivate staff to achieve business objectives, and attract and retain key talent through various benefits - As of June 30, 2025, the Group had **10 employees** (June 30, 2024: 11 employees)[65](index=65&type=chunk)[70](index=70&type=chunk) - The Group's remuneration and benefits policy aims to recognize excellent performance, motivate and reward employees for achieving business objectives, retain and attract key talent, and provides benefits such as medical insurance, body check programs, provident fund schemes, and housing allowance schemes[66](index=66&type=chunk)[70](index=70&type=chunk) - Employee recruitment and promotion are primarily based on individual job performance, relevant experience, development potential, and performance[67](index=67&type=chunk)[71](index=71&type=chunk) [Interim Dividend](index=16&type=section&id=Interim%20Dividend) The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025 - The Board of Directors resolved **not to declare any interim dividend** for the six months ended June 30, 2025 (June 30, 2024: nil)[68](index=68&type=chunk)[72](index=72&type=chunk) [Outlook](index=17&type=section&id=Outlook) Despite robust economic expansion in Hong Kong, the property market faces challenges, and the Group anticipates 2025 to be a period of prudent stability and strategic repositioning, actively managing its existing portfolio, optimizing core asset returns, and cautiously exploring new opportunities, while leveraging resources from its controlling shareholder, China Great Wall Asset Management, to expand domestic business as its sole offshore listing platform - **2025 is expected to be a period of prudent stability and strategic repositioning** for the Group, despite Hong Kong's economy growing by approximately 3.1% year-on-year in the second quarter, as the property market faces challenges[73](index=73&type=chunk)[78](index=78&type=chunk) - The Group will actively manage its existing investment portfolio, focusing on **capital preservation, optimizing returns from core assets**, and cautiously exploring new opportunities aligned with shareholders' interests[74](index=74&type=chunk)[79](index=79&type=chunk) - The Group will fully leverage the substantial resources of its controlling shareholder, China Great Wall Asset Management Co., Ltd. (GWAMCC), combining domestic and international capital markets to actively expand its domestic business, fulfilling its role as the **sole offshore listing platform for the GWAMCC Group**[80](index=80&type=chunk)[81](index=81&type=chunk) - The Group's investment properties continue to provide **stable income streams** and create value through asset appreciation, successfully diversifying its tenant mix and enhancing leasing performance[77](index=77&type=chunk)[79](index=79&type=chunk) CORPORATE GOVERNANCE [Corporate Governance Overview](index=19&type=section&id=Corporate%20Governance) The company is committed to safeguarding shareholders' interests and has adopted and applied the Corporate Governance Code set out in Appendix C1 of the Listing Rules, ensuring compliance with all applicable principles and code provisions for the six months ended June 30, 2025 - The Board and management are committed to safeguarding shareholders' interests and prioritize enhancing and protecting them[82](index=82&type=chunk)[86](index=86&type=chunk) - The company has adopted and applied the **Corporate Governance Code** set out in Appendix C1 of the Listing Rules as its corporate governance practices[83](index=83&type=chunk)[86](index=86&type=chunk) - The Board believes that the company has complied with the applicable principles and code provisions of the Corporate Governance Code for the six months ended June 30, 2025[84](index=84&type=chunk)[86](index=86&type=chunk) [Audit Committee and Review of Interim Financial Information](index=19&type=section&id=Audit%20Committee%20and%20Review%20of%20Interim%20Financial%20Information) The Audit Committee, composed of two Independent Non-executive Directors and one Non-executive Director, is responsible for reviewing interim financial information and confirming its compliance with accounting standards and Listing Rules, with external auditors also conducting a review in accordance with Hong Kong Review Engagements Standards - The Audit Committee, established in 1998, comprises **two Independent Non-executive Directors** (Mr. Mei Yihe as Chairman, Ms. Li Lihua) and **one Non-executive Director** (Mr. Ren Zhiqiang)[85](index=85&type=chunk)[87](index=87&type=chunk) - The Audit Committee has reviewed the unaudited condensed consolidated interim financial information for the six months ended June 30, 2025, and considers it to be in compliance with applicable accounting standards and the Listing Rules[88](index=88&type=chunk)[91](index=91&type=chunk) - The external auditor, Deloitte Touche Tohmatsu Certified Public Accountants LLP, has reviewed the financial statements in accordance with Hong Kong Standard on Review Engagements 2410[88](index=88&type=chunk)[91](index=91&type=chunk) [Sufficiency of Public Float](index=20&type=section&id=Sufficiency%20of%20Public%20Float) As of the date of this interim report, the company's public float exceeds 25% of its total issued shares - As of the date of this interim report, the percentage of shares held by the public exceeds **25% of the company's total issued shares**[89](index=89&type=chunk)[92](index=92&type=chunk) [Remuneration Committee](index=20&type=section&id=Remuneration%20Committee) The Remuneration Committee, established in 2000 and primarily composed of Independent Non-executive Directors, is responsible for formulating remuneration policies to incentivize and retain talent - The Remuneration Committee, established in 2000, comprises **two Independent Non-executive Directors** (Ms. Li Lihua as Chairman, Dr. Xie Wensi) and **one Executive Director** (Mr. Wang Zuomin)[90](index=90&type=chunk)[93](index=93&type=chunk) [Nomination Committee](index=21&type=section&id=Nomination%20Committee) The Nomination Committee, established in 2005 and primarily composed of Independent Non-executive Directors, is responsible for director nominations and succession planning - The Nomination Committee, established in 2005, comprises **one Executive Director** (Mr. Wang Hai as Chairman) and **two Independent Non-executive Directors** (Ms. Li Lihua, Mr. Mei Yihe)[94](index=94&type=chunk)[97](index=97&type=chunk) [Compliance with the Model Code and Company Guidelines](index=21&type=section&id=Compliance%20with%20the%20Model%20Code%20and%20the%20Company%27s%20Guidelines) The Board has adopted the Model Code set out in Appendix C3 of the Listing Rules as the standard for directors' securities transactions and confirmed all directors' compliance during the reporting period, with the company also establishing equally stringent written guidelines for relevant employees - The Board has adopted the **Model Code** set out in Appendix C3 of the Listing Rules as the standard for directors' securities transactions[95](index=95&type=chunk)[98](index=98&type=chunk) - All directors have confirmed compliance with the required standards of the Model Code for the six months ended June 30, 2025[95](index=95&type=chunk)[98](index=98&type=chunk) - The company has also adopted **Company Guidelines** that are no less exacting than the Model Code, applicable to employees who may possess unpublished inside information[96](index=96&type=chunk)[98](index=98&type=chunk) [Directors and Changes](index=22&type=section&id=Directors) During the reporting period, there were changes in the company's Board of Directors, including appointments and resignations of Executive, Non-executive, and Independent Non-executive Directors, with the Board having three committees: Audit, Remuneration, and Nomination, and their respective member compositions are listed Board of Directors Changes | Director Type | Name | Title/Change Description | | :--- | :--- | :--- | | Executive Director | Mr. Wang Hai | Chairman of the Board (appointed on August 20, 2021) | | Executive Director | Mr. Wang Zuomin | Chief Executive Officer (appointed on August 20, 2024) | | Non-executive Director | Mr. Ren Zhiqiang | Appointed on August 20, 2024 | | Independent Non-executive Director | Dr. Song Min | Appointed on November 5, 2016, resigned on March 15, 2025 | | Independent Non-executive Director | Dr. Sun Mingchun | Appointed on November 5, 2016, resigned on March 15, 2025 | | Independent Non-executive Director | Ms. Liu Yan | Appointed on November 26, 2018, resigned on March 15, 2025 | | Independent Non-executive Director | Ms. Li Lihua | Appointed on March 15, 2025 | | Independent Non-executive Director | Mr. Mei Yihe | Appointed on March 15, 2025 | | Independent Non-executive Director | Dr. Xie Wensi | Appointed on March 15, 2025 | - Mr. Mei Yihe (Independent Non-executive Director) resigned as an independent director of Click Holdings Limited on May 14, 2025[102](index=102&type=chunk)[103](index=103&type=chunk) [Disclosures Pursuant to Rule 13.21 of the Listing Rules](index=24&type=section&id=Disclosures%20Pursuant%20to%20Rule%2013.21%20of%20the%20Listing%20Rules) The company discloses two loan agreements, each containing covenants for the controlling shareholder's obligations, where Bank A may terminate the loan agreements and demand immediate repayment of all outstanding amounts if the controlling shareholder, Great Wall International, loses control over the borrower - The company, as guarantor, entered into two loan agreements with its wholly-owned subsidiary, Top Shine Limited (the borrower), and Bank A, each with a **maximum principal amount of 850 million HKD**[105](index=105&type=chunk) - The loan agreements stipulate that if the controlling shareholder, Great Wall International, loses direct or indirect control over the borrower, it will trigger an event of default, allowing Bank A to terminate the agreements and demand immediate repayment of all outstanding amounts[105](index=105&type=chunk) [Interests of Directors and Chief Executives](index=25&type=section&id=Interests%20of%20Directors%20and%20Chief%20Executives) As of June 30, 2025, to the best knowledge of the directors, none of the company's directors or chief executives held any interests or short positions in the shares, underlying shares, or debentures of the company or its associated corporations - As of June 30, 2025, none of the company's directors or chief executives held any interests or short positions in the shares, underlying shares, or debentures of the company or its associated corporations[106](index=106&type=chunk)[108](index=108&type=chunk) [Directors' and Chief Executives' Rights to Acquire Shares or Debentures](index=25&type=section&id=Directors%27%20and%20Chief%20Executives%27%20Rights%20to%20Acquire%20Shares%20or%20Debentures) As of June 30, 2025, no directors or chief executives (including their spouses and children under 18) held any interests in the shares of the company and its associated corporations, nor had they been granted or exercised any rights to subscribe for shares - As of June 30, 2025, no directors or chief executives (including their spouses and children under 18) held any interests in the shares of the company and its associated corporations, nor had they been granted or exercised any rights to subscribe for shares[107](index=107&type=chunk)[109](index=109&type=chunk) [Interests of Substantial Shareholders](index=25&type=section&id=Interests%20of%20Substantial%20Shareholders) As of June 30, 2025, China Great Wall Asset Management Co., Ltd. and its controlled corporations held 74.89% of the company's shares, Central Huijin Investment Ltd. held 84.77%, and China Construction Bank Corporation and its controlled corporations held 9.89% Substantial Shareholders' Interests in Company Shares | Substantial Shareholder Name | Capacity/Nature of Interest | Number of Ordinary Shares Held (L) | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | China Great Wall Asset Management Co., Ltd. | Interest in controlled corporation | 1,174,018,094 | 74.89% | | China Great Wall Asset (International) Holdings Limited | Interest in controlled corporation | 1,174,018,094 | 74.89% | | Great Wall Pan Asia (BVI) Holding Limited | Beneficial owner | 1,174,018,094 | 74.89% | | Central Huijin Investment Ltd. | Interest in controlled corporation | 1,329,018,094 | 84.77% | | China Construction Bank Corporation | Interest in controlled corporation | 155,000,000 | 9.89% | | Wantai Investment Co., Ltd. | Beneficial owner | 155,000,000 | 9.89% | - Central Huijin Investment Ltd., by holding **73.53% of China Great Wall Asset Management Co., Ltd.'s shares**, indirectly owns **74.89% of the company's issued share capital** and is deemed to have an interest in all company shares held by Great Wall Pan Asia (BVI) Holding Limited[113](index=113&type=chunk)[115](index=115&type=chunk) - China Construction Bank Corporation indirectly owns **9.89% of the company's shares** through its **100% interest in Wantai Investment Co., Ltd.**[116](index=116&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=27&type=section&id=PURCHASE%2C%20SALE%20OR%20REDEMPTION%20OF%20THE%20LISTED%20SECU RITIES%20OF%20THE%20COMPANY) During the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[118](index=118&type=chunk)[119](index=119&type=chunk) REPORT ON REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS [Introduction](index=28&type=section&id=Introduction) The auditor has reviewed the interim condensed consolidated financial statements for the six months ended June 30, 2025, prepared in accordance with Hong Kong Accounting Standard 34 and the Listing Rules, with directors responsible for their preparation and presentation, and the auditor's responsibility being to conclude based on the review - The auditor has reviewed the interim condensed consolidated financial statements for the six months ended June 30, 2025[121](index=121&type=chunk)[122](index=122&type=chunk) - The statements are prepared in accordance with **Hong Kong Accounting Standard 34 "Interim Financial Reporting"** issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of the Listing Rules[121](index=121&type=chunk)[122](index=122&type=chunk) - The directors are responsible for the preparation and presentation of the interim condensed consolidated financial statements[121](index=121&type=chunk)[122](index=122&type=chunk) [Scope of Review](index=29&type=section&id=Scope%20of%20Review) The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410, primarily involving inquiries of personnel responsible for financial and accounting matters and applying analytical and other review procedures, with the scope being less than an audit, thus no audit opinion is expressed - The review was conducted in accordance with **Hong Kong Standard on Review Engagements 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity"** issued by the Hong Kong Institute of Certified Public Accountants[124](index=124&type=chunk)[126](index=126&type=chunk) - The scope of a review is substantially less than an audit, and therefore **no audit opinion is expressed**[124](index=124&type=chunk)[126](index=126&type=chunk) [Conclusion](index=29&type=section&id=Conclusion) Based on the review, the auditor has not found any matter that causes them to believe that the interim condensed consolidated financial statements are not prepared in all material respects in accordance with Hong Kong Accounting Standard 34 - The auditor has found no matter that causes them to believe the interim condensed consolidated financial statements are not prepared in all material respects in accordance with **Hong Kong Accounting Standard 34**[125](index=125&type=chunk)[127](index=127&type=chunk) CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION [Condensed Consolidated Balance Sheet](index=30&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEET) As of June 30, 2025, the Group's total assets were 9,483.7 million HKD, total liabilities were 5,846.3 million HKD, and total equity was 3,637.4 million HKD, with investment properties and investments in associates constituting the largest portions of non-current assets Condensed Consolidated Balance Sheet Overview | Indicator | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | | :--- | :--- | :--- | | **Assets** | | | | Non-current assets | 9,207,180 | 9,398,872 | | Investment properties | 3,378,300 | 3,469,900 | | Investment in associates | 5,336,512 | 5,425,218 | | Current assets | 276,527 | 236,882 | | Cash and bank balances | 247,859 | 209,268 | | **Total Assets** | **9,483,707** | **9,635,754** | | **Liabilities** | | | | Non-current liabilities | 19,394 | 19,759 | | Current liabilities | 5,826,955 | 5,698,587 | | Loans from intermediate holding company | 5,610,000 | 4,760,000 | | Bank borrowing | – | 849,457 | | **Total Liabilities** | **5,846,349** | **5,718,346** | | **Equity** | | | | Share capital | 156,775 | 156,775 | | Reserves | 3,480,583 | 3,760,633 | | **Total Equity** | **3,637,358** | **3,917,408** | - As of June 30, 2025, **total assets were 9,483,707 thousand HKD**, a decrease from 9,635,754 thousand HKD as of December 31, 2024[129](index=129&type=chunk) - **Net current liabilities were 5,550,428 thousand HKD**, primarily including **loans from an intermediate holding company of 5,610,000 thousand HKD**[129](index=129&type=chunk)[143](index=143&type=chunk) [Condensed Consolidated Statement of Comprehensive Income](index=31&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20COMPREHENSIVE%20INCOME) For the six months ended June 30, 2025, the Group recorded a loss for the period of 280.1 million HKD, compared to a profit of 4.5 million HKD in the prior period, mainly due to fair value losses on investment properties and share of loss from an associate Condensed Consolidated Statement of Comprehensive Income Overview | Indicator | 2025 First Half (HKD thousand) | 2024 First Half (HKD thousand) | | :--- | :--- | :--- | | Revenue | 58,215 | 60,948 | | Fair Value (Loss)/Gain on Investment Properties | (88,839) | 78,789 | | Operating Profit | (64,357) | 115,274 | | Net Finance Costs | (142,103) | (173,113) | | Share of (Loss)/Profit of an Associate | (70,766) | 64,866 | | (Loss)/Profit Before Income Tax | (277,226) | 7,027 | | (Loss)/Profit for the Period | (280,050) | 4,518 | | (Loss)/Profit Attributable to Equity Holders of the Company | (280,050) | 4,518 | | Basic Loss/(Earnings) Per Share (HK cents) | HK(17.86) cents | HK0.29 cents | - The **loss for the period was 280,050 thousand HKD**, compared to a profit of 4,518 thousand HKD in the prior period[131](index=131&type=chunk) - **Fair value of investment properties turned from a gain of 78,789 thousand HKD to a loss of 88,839 thousand HKD**[131](index=131&type=chunk) - **Share of profit or loss of an associate turned from a profit of 64,866 thousand HKD to a loss of 70,766 thousand HKD**[131](index=131&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=32&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CHANGES%20IN%20EQUITY) As of June 30, 2025, the Group's total equity was 3,637.4 million HKD, a decrease from 3,917.4 million HKD at the beginning of the year, primarily due to the loss of 280.1 million HKD recorded during the period Condensed Consolidated Statement of Changes in Equity Overview | Indicator | Balance at January 1, 2025 (HKD thousand) | Loss for the Period (HKD thousand) | Balance at June 30, 2025 (HKD thousand) | | :--- | :--- | :--- | :--- | | Share Capital | 156,775 | – | 156,775 | | Share Premium | 50,382 | – | 50,382 | | Contributed Surplus | 310,841 | – | 310,841 | | Merger Reserve | (9,011) | – | (9,011) | | Other Reserves | 333,445 | – | 333,445 | | Retained Earnings | 3,074,976 | (280,050) | 2,794,926 | | **Total Equity** | **3,917,408** | **(280,050)** | **3,637,358** | - As of June 30, 2025, **total equity was 3,637,358 thousand HKD**, a decrease of 280,050 thousand HKD from 3,917,408 thousand HKD as of January 1, 2025, primarily reflecting the loss for the period[133](index=133&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=33&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CASH%20FLOWS) For the six months ended June 30, 2025, net cash generated from operating activities was 38.1 million HKD, net cash generated from investing activities was 18.8 million HKD, and net cash used in financing activities was 18.3 million HKD, resulting in a net increase in cash and cash equivalents of 38.6 million HKD at period-end Condensed Consolidated Statement of Cash Flows Overview | Cash Flow Type | 2025 First Half (HKD thousand) | 2024 First Half (HKD thousand) | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 38,131 | 34,653 | | Net Cash Generated from Investing Activities | 18,768 | 3,540 | | Net Cash Used in Financing Activities | (18,308) | (79,523) | | Net Increase/(Decrease) in Cash and Cash Equivalents | 38,591 | (41,330) | | Cash and Cash Equivalents at January 1 | 209,268 | 232,523 | | Cash and Cash Equivalents at June 30 | 247,859 | 191,181 | - **Net cash generated from operating activities increased** from 34,653 thousand HKD in the first half of 2024 to **38,131 thousand HKD** in the first half of 2025[135](index=135&type=chunk) - **Net cash generated from investing activities significantly increased** from 3,540 thousand HKD in the first half of 2024 to **18,768 thousand HKD** in the first half of 2025, primarily due to dividend income from an associate[135](index=135&type=chunk) - **Net cash used in financing activities substantially decreased** from 79,523 thousand HKD in the first half of 2024 to **18,308 thousand HKD** in the first half of 2025, mainly due to lower repayment of bank borrowings compared to repayment of loans from an intermediate holding company in the prior period[135](index=135&type=chunk) NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION [1. Basis of preparation and accounting policies](index=34&type=section&id=1.%20Basis%20of%20preparation%20and%20accounting%20policies) The interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 and the Listing Rules, with accounting policies consistent with the 2024 consolidated financial statements, except for the adoption of revised standards effective January 1, 2025, and the Group prepares its statements on a going concern basis, expecting sufficient financial resources despite net current liabilities - The interim financial information is prepared in accordance with **Hong Kong Accounting Standard 34 "Interim Financial Reporting"** and the applicable disclosure requirements of the Listing Rules[137](index=137&type=chunk)[141](index=141&type=chunk) - Except for the adoption of revised Hong Kong Financial Reporting Standards effective on or after January 1, 2025, the accounting policies and methods of computation are **consistent with the 2024 consolidated financial statements**[138](index=138&type=chunk)[141](index=141&type=chunk)[148](index=148&type=chunk)[152](index=152&type=chunk)[153](index=153&type=chunk) - The Group prepares its financial statements on a **going concern basis**, despite recording a **loss of 280,050 thousand HKD** and **net current liabilities of 5,550,428 thousand HKD** as of June 30, 2025[143](index=143&type=chunk)[146](index=146&type=chunk) - The directors believe the Group will have **sufficient working capital** to fund its operations and meet its financial obligations as they fall due, thus no material uncertainties exist that cast significant doubt on the going concern assumption[145](index=145&type=chunk)[147](index=147&type=chunk) [2. Revenue and segment information](index=36&type=section&id=2.%20Revenue%20and%20segment%20information) The Group has two reportable segments: property investment, which generates revenue from leasing properties, and financial services, which engages in regulated asset management activities, with property investment revenue of 58.2 million HKD and no revenue from financial services in the first half of 2025 - The Group has **two reportable segments**: the property investment segment and the financial services segment[150](index=150&type=chunk)[154](index=154&type=chunk) - The property investment segment generates revenue from **leasing retail, commercial, and industrial properties in Hong Kong**[151](index=151&type=chunk)[154](index=154&type=chunk) - The financial services segment primarily engages in **regulated activities under the Securities and Futures Ordinance (Type 9 asset management)**[151](index=151&type=chunk)[154](index=154&type=chunk)[155](index=155&type=chunk) Revenue and Profit/(Loss) by Segment | Segment | 2025 First Half Revenue (HKD thousand) | 2025 First Half Net (Loss)/Profit (HKD thousand) | | :--- | :--- | :--- | | Property Investment | 58,215 | (89,422) | | Financial Services | – | 43 | | **Total** | **58,215** | **(89,379)** | Reconciliation of Reportable Segment Profit/(Loss) | Reconciliation Item | 2025 First Half (HKD thousand) | 2024 First Half (HKD thousand) | | :--- | :--- | :--- | | Net (Loss)/Profit of Reportable Segments | (89,379) | 80,133 | | Share of (Loss)/Profit of an Associate accounted for using equity method | (70,766) | 64,866 | | Finance costs for financing the Group's investment in an associate | (122,946) | (146,985) | | Other corporate and treasury activities | 3,041 | 6,504 | | **(Loss)/Profit for the Period** | **(280,050)** | **4,518** | [3. Property, plant and equipment](index=40&type=section&id=3.%20Property%2C%20plant%20and%20equipment) As of June 30, 2025, the net book value of property, plant and equipment was 492.3 million HKD, a decrease from 503.7 million HKD at the beginning of the year, with depreciation, transfers to, and transfers from investment properties occurring during the period Changes in Net Book Value of Property, Plant and Equipment | Indicator | Net Book Value at January 1, 2025 (HKD thousand) | Depreciation (HKD thousand) | Transferred from Investment Properties (HKD thousand) | Transferred to Investment Properties (HKD thousand) | Net Book Value at June 30, 2025 (HKD thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | | Total | 503,650 | (2,877) | 239,400 | (247,909) | 492,264 | - As of June 30, 2025, the **net book value of property, plant and equipment was 492,264 thousand HKD**[168](index=168&type=chunk) - **Depreciation expense for the period was 2,877 thousand HKD**[168](index=168&type=chunk) - During the period, **239,400 thousand HKD of property, plant and equipment were transferred from investment properties**, while **247,909 thousand HKD were transferred to investment properties**[168](index=168&type=chunk) [4. Investment properties](index=41&type=section&id=4.%20Investment%20properties) As of June 30, 2025, the fair value of investment properties was 3,378.3 million HKD, a decrease from the beginning of the year, with a fair value loss of 88.8 million HKD recorded during the period, primarily due to valuation declines in Hong Kong's challenging real estate market, and some investment properties are pledged for bank financing Changes in Fair Value of Investment Properties | Indicator | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | | :--- | :--- | :--- | | At January 1 | 3,469,900 | 3,328,900 | | Capitalized expenditure | 1,139 | 9,352 | | Fair value (loss)/gain | (88,839) | 131,648 | | Transferred from property, plant and equipment | 235,500 | – | | Transferred to property, plant and equipment | (239,400) | – | | **At June 30/December 31** | **3,378,300** | **3,469,900** | - As of June 30, 2025, the **fair value of investment properties was 3,378,300 thousand HKD**, a decrease from 3,469,900 thousand HKD as of December 31, 2024[170](index=170&type=chunk) - A **fair value loss of 88,839 thousand HKD** was recorded during the period, compared to a fair value gain of 131,648 thousand HKD in the prior period, primarily due to challenges faced by the Hong Kong real estate market in early 2025[170](index=170&type=chunk)[174](index=174&type=chunk) - As of June 30, 2025, investment properties with a **carrying amount of approximately 2,108,000 thousand HKD** were pledged as security for the Group's bank financing[173](index=173&type=chunk)[175](index=175&type=chunk) [5. Investment in associates](index=43&type=section&id=5.%20Investment%20in%20associates) As of June 30, 2025, the Group's investment in associate Everwell City Limited was 5,336.5 million HKD, with a share of loss from the associate of 70.8 million HKD during the period, compared to a profit of 64.9 million HKD in the prior period, mainly impacted by increased finance costs and revaluation losses on its investment properties Changes in Investment in Associates | Indicator | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | | :--- | :--- | :--- | | At January 1 | 5,425,218 | 5,387,008 | | Dividends from an associate | (17,940) | (18,141) | | Share of (loss)/profit of an associate | (70,766) | 56,351 | | **At June 30/December 31** | **5,336,512** | **5,425,218** | - As of June 30, 2025, the Group's **investment in associate Everwell City Limited was 5,336,512 thousand HKD**[178](index=178&type=chunk) - The **share of loss from the associate for the period was 70,766 thousand HKD**, compared to a profit of 64,866 thousand HKD in the prior period[178](index=178&type=chunk)[189](index=189&type=chunk) - Everwell City Limited's **loss and total comprehensive income for the period was 236,961 thousand HKD**, compared to a profit of 215,774 thousand HKD in the prior period[185](index=185&type=chunk)[189](index=189&type=chunk) [6. Amount due from an intermediate holding company](index=45&type=section&id=6.%20Amount%20due%20from%20an%20intermediate%20holding%20company) As of June 30, 2025, the amount due from the intermediate holding company, China Great Wall Asset (International) Holdings Limited, was 5.1 million HKD, primarily comprising rental income and deposits, which is unsecured, interest-free, and repayable on demand - As of June 30, 2025, the **amount due from the intermediate holding company, China Great Wall Asset (International) Holdings Limited, was 5,133 thousand HKD** (December 31, 2024: 162 thousand HKD)[192](index=192&type=chunk)[194](index=194&type=chunk) - This amount primarily represents **rental income and deposits receivable** for the period ended June 30, 2025, and daily operating expenses paid on behalf of the intermediate holding company[192](index=192&type=chunk)[194](index=194&type=chunk) - The amount is **unsecured, interest-free, and repayable on demand**[192](index=192&type=chunk)[194](index=194&type=chunk) [7. Accounts receivable](index=46&type=section&id=7.%20Accounts%20receivable) As of June 30, 2025, total accounts receivable amounted to 4.0 million HKD, with 54.9% overdue for less than 30 days, and overdue but not impaired receivables are considered fully recoverable Ageing Analysis of Accounts Receivable | Ageing | Balance at June 30, 2025 (HKD thousand) | Percentage at June 30, 2025 (%) | Balance at December 31, 2024 (HKD thousand) | Percentage at December 31, 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Current | 791 | 19.6 | 3,689 | 81.0 | | Overdue less than 30 days | 2,219 | 54.9 | 734 | 16.1 | | Overdue 31 to 60 days | 680 | 16.8 | 105 | 2.3 | | Overdue 61 to 90 days | 108 | 2.7 | – | – | | Overdue more than 90 days | 242 | 6.0 | 26 | 0.6 | | **Total** | **4,040** | **100.0** | **4,554** | **100.0** | | Impairment allowance | (43) | | (23) | | | **Total (Net)** | **3,997** | | **4,531** | | - As of June 30, 2025, **total accounts receivable were 3,997 thousand HKD**, a decrease from 4,531 thousand HKD as of December 31, 2024[198](index=198&type=chunk) - **54.9% of accounts receivable were overdue for less than 30 days**, while **6.0% were overdue for more than 90 days**[198](index=198&type=chunk) - Overdue but not impaired accounts receivable are considered **fully recoverable** by the Group based on past experience[198](index=198&type=chunk)[200](index=200&type=chunk) [8. Prepayments, deposits and other receivables](index=46&type=section&id=8.%20Prepayments%2C%20deposits%20and%20other%20receivables) As of June 30, 2025, prepayments, deposits, and other receivables primarily included utility and management fee deposits of 3.9 million HKD and rent-free receivables of 3.2 million HKD - As of June 30, 2025, prepayments, deposits, and other receivables primarily included **utility and management fee deposits of 3,872 thousand HKD** (December 31, 2024: 3,782 thousand HKD) and **rent-free receivables of 3,239 thousand HKD** (December 31, 2024: 6,720 thousand HKD)[199](index=199&type=chunk)[201](index=201&type=chunk) [9. Bank Borrowing](index=47&type=section&id=9.%20Bank%20Borrowing) As of June 30, 2025, the Group had no outstanding bank loans, as a previous 850 million HKD bank loan was fully repaid on May 23, 2025, and the Group has 850 million HKD in available unutilized bank facilities, with investment properties and bank deposits pledged as security Bank Borrowing Overview | Indicator | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | | :--- | :--- | :--- | | Bank loans | – | 849,457 | - As of June 30, 2025, the Group had **no outstanding bank loans**, as a previous **850,000 thousand HKD bank loan was fully repaid on May 23, 2025**[205](index=205&type=chunk)[206](index=206&type=chunk) - The Group has **850,000 thousand HKD in available unutilized bank facilities** with a five-year term[205](index=205&type=chunk)[206](index=206&type=chunk) - The Group has pledged **investment properties with a carrying amount of 2,108,000 thousand HKD** and **bank deposits of 12,427 thousand HKD** as collateral for bank financing[205](index=205&type=chunk)[206](index=206&type=chunk) [10. Loans from an intermediate holding company](index=48&type=section&id=10.%20Loans%20from%20an%20intermediate%20holding%20company) As of June 30, 2025, the Group's total loans from an intermediate holding company amounted to 5,610.0 million HKD, including a 4,760.0 million HKD loan repayable in November 2025 and a new 900.0 million HKD loan (of which 850 million HKD was drawn to repay bank borrowings) repayable in May 2026 - In November 2024, the intermediate holding company, Great Wall International, agreed with the company to modify and restructure the terms of a term loan, with a **new principal amount of 4,760,000 thousand HKD**, a one-year term, and an annual interest rate of HIBOR plus 2%, repayable in November 2025[208](index=208&type=chunk)[211](index=211&type=chunk) - In May 2025, Great Wall International agreed to provide a **new term loan facility of 900,000 thousand HKD**, with a one-year term and an annual interest rate of HIBOR plus 1.4%, repayable in May 2026[209](index=209&type=chunk)[211](index=211&type=chunk) - As of June 30, 2025, the company had drawn **850,000 thousand HKD from this new loan facility** to repay maturing bank borrowings[209](index=209&type=chunk)[211](index=211&type=chunk) [11. Other payables and accrued liabilities](index=49&type=section&id=11.%20Other%20payables%20and%20accrued%20liabilities) As of June 30, 2025, total other payables and accrued liabilities amounted to 209.2 million HKD, primarily comprising interest payable of 165.9 million HKD and rental deposits received of 24.2 million HKD Other Payables and Accrued Liabilities Overview | Indicator | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | | :--- | :--- | :--- | | Interest payable | 165,936 | 42,232 | | Rental deposits received | 24,231 | 26,171 | | Other payables and accrued expenses | 13,205 | 13,585 | | Rental received in advance | 4,666 | 2,458 | | Others | 1,118 | 1,598 | | **Total** | **209,156** | **86,044** | | Non-current portion | 1,165 | 1,532 | | Current portion | 207,991 | 84,512 | - As of June 30, 2025, **total other payables and accrued liabilities were 209,156 thousand HKD**, a significant increase from 86,044 thousand HKD as of December 31, 2024[213](index=213&type=chunk) - **Interest payable increased from 42,232 thousand HKD to 165,936 thousand HKD** from December 31, 2024[213](index=213&type=chunk) [12. Share capital](index=49&type=section&id=12.%20Share%20capital) As of June 30, 2025, the company's authorized share capital was 500.0 million HKD, and issued and fully paid share capital was 156.8 million HKD, comprising 1,567,745,596 shares with a par value of HKD 0.10 each, remaining unchanged from December 31, 2024 Share Capital Overview | Indicator | Number of Shares at June 30, 2025 | Amount at June 30, 2025 (HKD thousand) | Number of Shares at December 31, 2024 | Amount at December 31, 2024 (HKD thousand) | | :--- | :--- | :--- | :--- | :--- | | Authorized ordinary shares (par value HKD 0.10 each) | 5,000,000,000 | 500,000 | 5,000,000,000 | 500,000 | | Issued and fully paid ordinary shares (par value HKD 0.10 each) | 1,567,745,596 | 156,775 | 1,567,745,596 | 156,775 | - As of June 30, 2025, **issued and fully paid share capital was 156,775 thousand HKD**, comprising **1,567,745,596 shares**, remaining unchanged from December 31, 2024[215](index=215&type=chunk) [13. Other reserves](index=50&type=section&id=13.%20Other%20reserves) As of June 30, 2025, total other reserves amounted to 333.4 million HKD, including an asset revaluation reserve of 334.1 million HKD and an exchange reserve of negative 0.6 million HKD, remaining unchanged from the beginning of the year Other Reserves Overview | Indicator | Balance at January 1, 2025 (HKD thousand) | Exchange Differences (HKD thousand) | Balance at June 30, 2025 (HKD thousand) | | :--- | :--- | :--- | :--- | | Asset revaluation reserve | 334,065 | – | 334,065 | | Exchange reserve | (620) | – | (620) | | **Total** | **333,445** | **–** | **333,445** | - As of June 30, 2025, **total other reserves were 333,445 thousand HKD**, remaining unchanged from January 1, 2025[217](index=217&type=chunk) [14. Net finance cost](index=50&type=section&id=14.%20Net%20finance%20cost) For the six months ended June 30, 2025, net finance cost was 142.1 million HKD, a decrease from 173.1 million HKD in the prior period, primarily due to reduced interest expense on loans from an intermediate holding company Net Finance Cost Overview | Indicator | 2025 First Half (HKD thousand) | 2024 First Half (HKD thousand) | | :--- | :--- | :--- | | Interest expense on loans from intermediate holding company | 125,884 | 170,816 | | Interest expense on bank loans | 18,194 | 4,108 | | Bank interest income | (1,975) | (1,811) | | **Total** | **142,103** | **173,113** | - For the six months ended June 30, 2025, **net finance cost was 142,103 thousand HKD**, a decrease from 173,113 thousand HKD in the prior period[219](index=219&type=chunk) - **Interest expense on loans from an intermediate holding company decreased** from 170,816 thousand HKD to **125,884 thousand HKD**[219](index=219&type=chunk) [15. Income tax expense](index=51&type=section&id=15.%20Income%20tax%20expense) For the six months ended June 30, 2025, income tax expense was 2.8 million HKD, primarily Hong Kong profits tax, with deferred tax assets and liabilities offset, resulting in a net deferred income tax liability of 18.1 million HKD Income Tax Expense Overview | Indicator | 2025 First Half (HKD thousand) | 2024 First Half (HKD thousand) | | :--- | :--- | :--- | | Hong Kong profits tax | 2,822 | 2,505 | | Deferred tax expense | 2 | 4 | | **Total** | **2,824** | **2,509** | - **Hong Kong profits tax is provided at a rate of 16.5%**[221](index=221&type=chunk) - As of June 30, 2025, **deferred tax assets were 104 thousand HKD**, and **deferred income tax liabilities were 18,229 thousand HKD**, resulting in a **net deferred income tax liability of 18,125 thousand HKD**[223](index=223&type=chunk) [16. (Loss)/earnings per share](index=52&type=section&id=16.%20%28Loss%29%2Fearnings%20per%20share) For the six months ended June 30, 2025, basic loss per share was 17.86 HK cents, compared to basic earnings per share of 0.29 HK cents in the prior period, with diluted earnings per share being the same as basic earnings per share due to no potential dilutive ordinary shares - For the six months ended June 30, 2025, **basic loss per share was 17.86 HK cents** (first half of 2024: earnings per share of 0.29 HK cents)[131](index=131&type=chunk)[226](index=226&type=chunk)[228](index=228&type=chunk) - Basic loss per share is calculated based on the **weighted average of 1,567,745,596 issued shares** during the period[226](index=226&type=chunk)[228](index=228&type=chunk) - Diluted earnings per share is the same as basic earnings per share as there are **no potential dilutive ordinary shares**[227](index=227&type=chunk)[228](index=228&type=chunk) [17. Dividends](index=53&type=section&id=17.%20Dividends) The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025, nor to recommend any final dividend for the year ended December 31, 2024 - The Board of Directors resolved **not to declare any interim dividend** for the six months ended June 30, 2025 (first half of 2024: nil)[229](index=229&type=chunk)[232](index=232&type=chunk) - The Board of Directors has resolved **not to recommend any final dividend** for the year ended December 31, 2024[229](index=229&type=chunk)[232](index=232&type=chunk) [18. Fair value measurement of financial instruments](index=53&type=section&id=18.%20Fair%20value%20measurement%20of%20financial%20instruments) As of June 30, 2025, and December 31, 2024, the carrying amounts of the Group's financial assets and liabilities measured at amortized cost were approximate to their fair values - As of June 30, 2025, and December 31, 2024, the carrying amounts of the Group's financial assets and liabilities measured at amortized cost (including accounts receivable, bank borrowings, loans from an intermediate holding company, etc.) were **approximate to their fair values**[230](index=230&type=chunk)[233](index=233&type=chunk) [19. Related party transactions](index=53&type=section&id=19.%20Related%20party%20transactions) The Group engaged in several significant transactions with its ultimate controlling company, China Great Wall Asset Management Co., Ltd., and its subsidiaries, including leasing investment properties to an intermediate holding company, interest expense on loans from an intermediate holding company, and amounts due from/to an intermediate holding company - Great Wall Pan Asia (BVI) Holding Limited is the company's direct holding company, China Great Wall Asset (International) Holdings Limited is the intermediate holding company, and China Great Wall Asset Management Co., Ltd. (GWAMCC) is the ultimate holding company[231](index=231&type=chunk)[234](index=234&type=chunk) Transactions with China Great Wall Asset Group | Transaction Type | 2025 First Half (HKD thousand) | 2024 First Half (HKD thousand) | | :--- | :--- | :--- | | Rental income from leasing investment properties to intermediate holding company | 4,378 | 7,336 | | Interest expense on loans from intermediate holding company | 125,884 | 170,816 | | Related Party Balances | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | | :--- | :--- | :--- | | Amount due from intermediate holding company | 5,133 | 162 | | Loans from intermediate holding company - Loans payable | 5,610,000 | 4,760,000 | | Loans from intermediate holding company - Interest payable | 165,936 | 42,232 | | Amount due to intermediate holding company | 2,925 | 1,401 | - **Key management personnel remuneration was zero** in the first half of 2025, compared to 1,053 thousand HKD in the first half of 2024[240](index=240&type=chunk) [20. Approval of the interim financial information](index=55&type=section&id=20.%20Approval%20of%20the%20interim%20financial%20information) This interim financial information was approved by the Board of Directors on August 29, 2025 - This interim financial information was **approved by the Board of Directors on August 29, 2025**[242](index=242&type=chunk) GLOSSARY [GLOSSARY](index=55&type=section&id=GLOSSARY) This report provides a series of common terms and their definitions to ensure clarity and consistency of the report content

目錄 | 管理層討論及分析 | 2 | | --- | --- | | 簡明綜合中期財務資料審閱報告 | 29 | | 簡明綜合損益及其他全面收益表 | 31 | | 簡明綜合財務狀況表 | 33 | | 簡明綜合權益變動報表 | 35 | | 簡明綜合現金流量表 | 37 | | 簡明綜合中期財務資料附註 | 39 | | 其他資料 | 67 | | 公司資料 | 91 | 新濠國際發展有限公司 | 二零二五年中期報告 1 管理層討論及分析 重要事件及發展 於二零二五年上半年，新濠國際發展有限公司（「新濠國際」或「本公司」）及其附屬公司（統 稱「本集團」）旗下綜合度假村表現強韌。 期內，本集團致力優化營運開支，並策略性地投資於物業升級及打造高端賓客體驗，以 實現平衡增長。其上半年表現反映本集團具備適應市場動態的能力，同時為其遍佈各地 的多元化物業組合的可持續增長奠定基礎。 在中華人民共和國澳門特別行政區（「澳門」），本集團通過具策略性的物業優化工程保持 競爭優勢，提升了訪客量及營運效率。於二零二五年五月煥新歸來的《水舞間》入座率超 乎理想，顯著帶動非博彩收入，並提升澳門作為娛樂目的地的魅力。 2 新濠國際發 ...

Financial Performance - For the first half of 2025, the company's revenue reached RMB 3,063,455,000, a year-on-year increase of 16.9% compared to RMB 2,620,565,000 in 2024[20] - Gross profit for the same period was RMB 666,871,000, up 50.2% from RMB 444,284,000 in the previous year[20] - Adjusted net profit was RMB 294,318,000, significantly higher than RMB 148,870,000 in the first half of 2024, reflecting a growth of 97.5%[20] - Total revenue for the six months ended June 30, 2025, was RMB3,063.5 million, up from RMB2,620.6 million in the same period last year[59] - Gross profit amounted to RMB666.9 million, up RMB222.6 million from RMB444.3 million in the first half of last year, with a gross profit margin increase from 17.0% to 21.8%[86] - Adjusted net profit (non-IFRS measure) increased by 97.7% from RMB148.9 million in the first half of last year to RMB294.3 million during the Reporting Period[117] - Adjusted net profit margin (non-IFRS measure) rose from 5.7% to 9.6%, attributed to product portfolio adjustments and increased contributions from mid-to-high-end products[117] Assets and Liabilities - As of June 30, 2025, total assets amounted to RMB 4,237,555,000, down from RMB 4,613,818,000 at the end of 2024, indicating a decrease of 8.1%[23] - Current liabilities decreased to RMB 680,249,000 from RMB 980,303,000, a reduction of 30.6%[23] - The net current assets increased to RMB 1,765,860,000, compared to RMB 1,702,555,000 at the end of 2024, showing an increase of 3.7%[23] - Inventories decreased by 21.3% from RMB1,360.2 million as of December 31, 2024, to RMB1,070.7 million as of June 30, 2025[118] - Trade receivables decreased by 4.0% from RMB377.4 million as of December 31, 2024, to RMB362.2 million as of June 30, 2025[120] - Cash on hand and at bank increased by 10.3% from RMB713.0 million as of December 31, 2024, to RMB786.7 million as of June 30, 2025[130] - Trade payables increased by 4.6% from RMB152.7 million as of December 31, 2024, to RMB159.8 million as of June 30, 2025[127] - Other payables surged by 173.0% from RMB100.5 million as of December 31, 2024, to RMB274.5 million as of June 30, 2025, mainly due to increased dividends payable[128] - Contract liabilities decreased by 62.1% from RMB40.6 million as of December 31, 2024, to RMB15.4 million as of June 30, 2025[129] - Bank loans decreased by 69.0% from RMB 645.5 million as of December 31, 2024, to RMB 200.1 million as of June 30, 2025, mainly due to the repayment of borrowings[136] - The gearing ratio improved to 17.5% as of June 30, 2025, down from 23.0% as of December 31, 2024, reflecting a decrease in total liabilities[137] Revenue by Product Category - Revenue from rice products increased by 21.0% from RMB1,707.2 million to RMB2,066.5 million, contributing an additional RMB359.3 million[61] - Revenue from corn products decreased by 15.8% from RMB514.2 million to RMB433.1 million, primarily due to adjustments in marketing strategies[61] - Revenue from whole grain, bean, and other products increased by 29.3% from RMB212.1 million to RMB274.3 million, driven by new product development[61] - Revenue from dried food and other products surged by 54.8% from RMB187.1 million to RMB289.6 million, attributed to increased sales volume and prices of by-products[61] Market Trends and Strategies - The company is focusing on health-oriented consumption trends, particularly in the food industry, which is shifting towards nutritionally balanced and convenient products[27] - The focus on pre-packaged products is driven by consumer demand for convenience and quality, leading to higher growth rates in the pre-packaged product market[33] - The trend towards health-conscious consumption is driving growth in whole grain and corn products, with consumers increasingly preferring low-fat and nutritious options[31] - Future strategies include expanding into new channels and businesses while maintaining a focus on high-quality origins for procurement and production[37] - The Group aims to enhance its omni-channel ecosystem and strengthen channel management capabilities to meet diversified consumer needs[35] Digitalization and Operational Efficiency - The Group plans to promote digitalization and system development to improve operational efficiency and resource allocation[35] - The company has implemented a supply chain management system to optimize resource integration and enhance operational efficiency[84] - Over twenty automated production lines have been put into operation to enhance production efficiency as of June 30, 2025[78] Shareholding and Corporate Governance - As of June 30, 2025, Mr. Wang Bing holds 143,698,000 H Shares, representing approximately 34.07% of the H Shares and 13.45% of the total issued share capital[168] - The total number of issued shares as of June 30, 2025, is 1,068,153,150 shares, including 421,819,430 H Shares and 646,333,720 Unlisted Shares[170] - The company has established an Audit Committee in compliance with the Listing Rules and Corporate Governance Code[190] - The company has complied with relevant laws and regulations during the reporting period, with no material non-compliance issues reported[182] Use of Proceeds from Global Offering - The net proceeds from the global offering of H Shares listed on 12 October 2023 amounted to approximately HK$716.4 million after deducting underwriting commissions and related expenses[186] - 35% of the net proceeds, approximately HK$250.74 million, is allocated to enhancing cooperation with suppliers and strengthening procurement capability, with HK$90.14 million unutilized as of 30 June 2025[187] - 30% of the net proceeds, approximately HK$214.92 million, is designated for expanding production capacity and upgrading existing production lines, with HK$81.37 million unutilized as of 30 June 2025[187] - 10% of the net proceeds, approximately HK$71.64 million, is intended for expanding channel coverage and establishing a sales ecosystem, with HK$25.79 million unutilized as of 30 June 2025[187] - The total unutilized net proceeds as of 30 June 2025 is approximately HK$281.17 million[187] Human Resources Management - The company is committed to enhancing its human resources management system to maximize the potential and effectiveness of its talents[200] - The company is focused on the effective management of human resources as a core competitiveness strategy[200]

| 管理層討論及分析 | 2 | | --- | --- | | 其他資料 | 20 | | 簡明綜合財務報表審閱報告 | 30 | 目錄 CONTENTS | 簡明綜合損益及其他全面收益表 | 32 | | --- | --- | | 簡明綜合財務狀況表 | 34 | | 簡明綜合權益變動表 | 36 | | 簡明綜合現金流量表 | 38 | | --- | --- | | 簡明綜合財務報表附註 | 40 | 網龍網絡控股有限公司 NETDRAGON WEBSOFT HOLDINGS LIMITED 管理層討論及分析 (1) 財務摘要及回顧（續） 分類財務摘要 | | 二零二五年上半年 | | 二零二四年上半年 | | | --- | --- | --- | --- | --- | | | 遊戲及 | Mynd.ai | 遊戲及 | Mynd.ai | | （人民幣百萬元） | 應用服務 | 業務 | 應用服務 | 業務 | | 收益 | 1,738 | 641 | 2,121 | 1,180 | | 毛利 | 1,498 | 163 | 1,849 | 351 | | 毛利率 | 86.2% | 25.4 ...

Financial Performance - Revenue for the first half of 2025 reached RMB 253.8 million, a 28.5% increase from RMB 197.5 million in the same period of 2024[6]. - Gross profit increased by 44.3% to RMB 155.0 million, compared to RMB 107.4 million in the previous year, resulting in a gross margin of 61.1%[6][15]. - Net profit surged by 101.7% to RMB 102.0 million, up from RMB 50.6 million in the prior year, with a net profit margin of 40.2%[6][15]. - Adjusted net profit (non-IFRS measure) increased by 14.9% to RMB 104.1 million from RMB 90.6 million in the previous year[15]. - For the six months ended June 30, 2025, the profit reached RMB 102.0 million, compared to RMB 50.6 million for the same period in 2024, representing a significant increase due to higher gross profit and fair value gains on financial liabilities[47]. - The adjusted net profit for the six months ended June 30, 2025, was RMB 104.1 million, up from RMB 90.6 million in the same period of 2024, reflecting a growth of approximately 15%[48]. - Basic earnings per share for the period was RMB 0.82, compared to RMB 0.40 in 2024, reflecting a 105% increase[96]. - The company reported a total comprehensive income of RMB 101,512,000 for the six months ended June 30, 2025, compared to RMB 50,967,000 in 2024[97]. Operational Highlights - The number of ongoing projects at the end of June 2025 was 1,463, an increase from 1,378 in June 2024[9][11]. - The number of new projects acquired during the first half of 2025 was 4,674, compared to 4,353 in the same period of 2024[9]. - The company expanded its workforce to 520 full-time employees, a 14.5% increase compared to the previous year[7]. - The company has a peptide API production capacity exceeding 500 kg annually, with each batch capable of producing over 30 kg, and can handle multiple orders of 100 kg scale[26]. - The company has 338 ongoing CDMO projects, including nine NCE GLP-1 molecule development projects with seven clients[29]. - The company has passed 17 regulatory and customer audits during the reporting period, demonstrating strong compliance and quality assurance[23]. Market and Industry Insights - The global peptide drug market is projected to grow from $89.5 billion in 2023 to $261.2 billion by 2032, with a compound annual growth rate (CAGR) of 12.6%[28]. - The GLP-1 drug market is expected to grow from $38.9 billion in 2023 to $129.9 billion by 2032, with a CAGR of 14.3%[28]. - The company plans to further develop in the global Tides drug market, particularly in the GLP-1 peptide segment[7]. Financial Position - As of June 30, 2025, the company had cash and cash equivalents of RMB 998.4 million, a substantial increase from RMB 387.2 million as of December 31, 2024, primarily due to operating cash flow and proceeds from a global offering[50]. - The total outstanding borrowings amounted to RMB 50.0 million as of June 30, 2025, with an interest rate ranging from 2.60% to 2.70%[55]. - The company's debt-to-asset ratio improved to 17.1% as of June 30, 2025, down from 72.8% as of December 31, 2024, mainly due to changes in equity and proceeds from the global offering[55]. - The company’s total equity increased to RMB 1,468,903,000 as of June 30, 2025, compared to RMB 318,750,000 at the end of 2024[100]. - The company’s current liabilities totaled RMB 265,349,000 as of June 30, 2025, compared to RMB 172,043,000 at the end of 2024, indicating increased operational activity[99]. Employee and Governance - The company has implemented a high-standard quality management system, with 100 employees in the quality assurance and control department as of June 30, 2025[22]. - The total employee count is 520, with 47% in production, 19% in quality assurance, and 12% in R&D[63]. - The company has adopted a share incentive plan to attract and retain quality employees[63]. - The company maintains a commitment to high standards of corporate governance and has complied with all applicable code provisions since its listing[68]. Future Plans and Investments - The company plans to expand production capacity in the U.S. and China, aiming for an annual capacity of 300 kg in the U.S. and an additional 500 kg in China by the end of 2025[30]. - The company plans to allocate HKD 327.58 million (76.40%) of the net proceeds for expanding service capacity and production through facility construction by December 31, 2026[76]. - The company is preparing for the commercialization of new drugs following regulatory approvals[174]. - The company has plans for market expansion and potential mergers and acquisitions in the future[174]. Regulatory and Compliance - The company received ISO 22716:2007 certification for good manufacturing practices in January 2025[7]. - The independent review report confirms that the interim financial data is prepared in accordance with International Accounting Standard 34[94]. - The company has not identified any matters that would lead to a belief that the interim financial data is not prepared in accordance with the relevant standards[94].

重要提示 本公司董事會、監事會及董事、監事、高級管理人員保證本中期報告內容的真實性、準確性、完 整性，不存在虛假記載、誤導性陳述或重大遺漏，並承擔個別和連帶的法律責任。 本中期報告經本公司第八屆董事會第三十七次會議審議通過。公司全體董事出席董事會會議，未有 董事對本中期報告提出異議。 本中期報告未經審計。畢馬威華振會計師事務所（特殊普通合夥）和畢馬威會計師事務所分別根據中 國和國際審閱準則出具了審閱意見。 公司負責人張佑君先生、主管會計工作負責人張皓先生及會計機構負責人西志穎女士聲明：保證本 中期報告中財務報告的真實、準確、完整。 董事會決議通過的本報告期利潤分配方案：每10股派發現金紅利人民幣2.90元（含稅）。此方案尚需 公司股東大會批准。 前瞻性陳述的風險聲明：本中期報告所涉及的未來計劃、發展戰略等前瞻性描述不構成本公司對投 資者的實質承諾，敬請投資者注意投資風險。 本公司不存在被第一大股東及其他關聯方非經營性佔用資金情況。 本公司不存在違反規定決策程序對外提供擔保的情況。 本公司不存在半數以上董事無法保證公司所披露中期報告的真實性、準確性和完整性。 本公司以中英文兩種語言編製本中期報告 。在對本中期報 ...

YUNHONG GUIXIN GROUP HOLDINGS LIMITED 運 鴻 硅 鑫 集 團 控 股 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：8349） 由於GEM 上市公司普遍為中小型公司，在GEM 買賣的證券可能會較於聯交所主板買 賣之證券承受較大的市場波動風險，同時無法保證在GEM 買賣的證券會有高流通量的 市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，對其準確性或完整性 亦不發表任何聲明，且明確表示概不就因本報告全部或任何部分內容而產生或因依賴 該等內容而引致的任何損失承擔任何責任。 本報告（運鴻硅鑫集團控股有限公司（「本公司」）董事（「董事」）會（「董事會」）就此共 同及個別地承擔全部責任）載有遵照聯交所GEM 證券上市規則（「GEM 上市規則」）而 提供的資料，旨在提供有關本公司的資料。董事在作出一切合理查詢後確認，就其所知 及所信：(1) 本報告所載資料在各重大方面均屬準確完整，並無誤導或欺詐成分；(2) 並 無遺漏任何其他事項致使本報告或其所載任何陳述產生誤導；及(3) 本報告中表達的所 有意見乃經過審慎周詳考慮後始行作出，並以公平合理之基準及假設 ...

Financial Performance - Revenue for the six months ended June 30, 2025, reached RMB 1,091,976 thousand, a significant increase of 47.6% from RMB 739,656 thousand in the same period of 2024[9]. - Gross profit for the first half of 2025 was RMB 921,848 thousand, up 61.5% from RMB 570,385 thousand in the prior year[9]. - RemeGen's pre-tax loss for the first half of 2025 was RMB 449,568 thousand, an improvement from a loss of RMB 780,460 thousand in the same period of 2024[9]. - The net loss for the period was RMB 449,568 thousand, an improvement from a net loss of RMB 780,460 thousand in the prior year, showing a 42.4% reduction in losses[132]. - The basic loss per share improved to RMB (0.83) from RMB (1.45) year-over-year, indicating better performance on a per-share basis[132]. - The total comprehensive loss for the period was RMB 419,557 thousand, which includes other comprehensive income of RMB 29,011 thousand[138]. Assets and Liabilities - Total assets increased to RMB 5,850,358 thousand as of June 30, 2025, compared to RMB 5,498,519 thousand as of December 31, 2024, reflecting a growth of approximately 6.4%[9]. - The total liabilities as of June 30, 2025, were RMB 3,492,867 thousand, a slight decrease from RMB 3,512,318 thousand as of December 31, 2024[9]. - The total equity increased to RMB 2,357,491 thousand as of June 30, 2025, compared to RMB 1,986,201 thousand as of December 31, 2024, representing a growth of approximately 18.6%[9]. - Cash and cash equivalents increased significantly to RMB 1,271,002 thousand from RMB 759,530 thousand, representing a 67.3% increase[135]. - The group's debt-to-asset ratio improved from 63.9% as of December 31, 2024, to 59.7% as of June 30, 2025[58]. Research and Development - Research and development expenses decreased to RMB 647,216 thousand in the first half of 2025 from RMB 806,233 thousand in the same period of 2024, indicating a reduction of approximately 19.7%[9]. - The company has developed over ten drug candidates, with seven currently in clinical development targeting more than twenty indications[10]. - The company is developing a rich pipeline of candidates, including Taitasip for various autoimmune diseases and other indications[14]. - The company is actively exploring additional indications for Taitasip, planning to initiate multiple Phase II/III clinical trials domestically[19]. Clinical Trials and Product Development - The company initiated a Phase III clinical trial for Taitasip (RC18) in China for the treatment of generalized myasthenia gravis (gMG) in the first half of 2023, with the trial expected to reach its primary endpoint by August 2024[15]. - In the Phase III trial, Taitasip demonstrated a significant reduction in the Myasthenia Gravis Activities of Daily Living (MG-ADL) score by 5.74 points compared to a 0.91 point reduction in the placebo group, with 98.1% of patients showing improvement of ≥3 points[16]. - A licensing agreement was established with Vor Biopharma Inc. for the development and commercialization of Taitasip outside Greater China, with a total value of $125 million, including an upfront payment of $45 million[19]. - Vor Biopharma is conducting a global Phase III clinical trial for Taitasip in gMG patients, having received orphan drug designation from the FDA in October 2022[20]. - The company has developed Vidisicimab, a leading antibody-drug conjugate (ADC) candidate, which is the first domestically approved ADC in China for treating HER2-expressing solid tumors, including low-expressing types[22]. Market and Sales - The company has commercialized two products, RC18 (brand name: Tai'ai®) and RC48 (brand name: Aidiqi®), which are undergoing clinical trials in China and the United States for over twenty indications[10]. - The company aims to become a leading player in the global biopharmaceutical industry, focusing on innovative and differentiated biologics for unmet medical needs[10]. - Revenue increased from RMB 739.7 million for the six months ended June 30, 2024, to RMB 1,092.0 million for the six months ended June 30, 2025, driven by strong sales of the autoimmune product Taitasip and the oncology product Vidisizumab[42]. Shareholder and Equity Information - As of June 30, 2025, the company had a total of 563,608,243 shares, including 208,581,239 H-shares and 355,027,004 A-shares[75]. - Mr. Wang Weidong holds a 43.25% equity interest in A-shares through controlled entities, representing 27.24% of the total shares[71]. - The company has established a consortium agreement among key stakeholders to ensure unified action in management and decision-making[73]. - The company issued 54,426,301 new A-shares at RMB 48.00 per share, raising approximately RMB 2,612.4 million, with net proceeds of about RMB 2,505.9 million after deducting issuance costs[68]. Incentive Plans - The company has implemented the first H-share plan to enhance its compensation system and ensure a balance of interests among stakeholders[82]. - The second phase of the H-share plan allows for the purchase of up to 27,213,150 H-shares, representing approximately 13.05% of the total issued H-shares and about 4.83% of the total share capital as of the report date[96]. - The 2022 A-share plan aims to enhance the company's long-term incentive mechanism, attracting and retaining talent while aligning the interests of shareholders, the company, and core team members[105]. - The maximum number of shares that any incentive recipient can receive will not exceed 1% of the total shares as of the announcement date[105]. Corporate Governance - The company has complied with all applicable corporate governance codes as of June 30, 2025[122]. - The independent auditor has reviewed the interim financial information in accordance with the relevant standards, confirming compliance with applicable accounting standards and regulations[124].

[Corporate Information](index=3&type=section&id=Corporate%20Information) This section provides key corporate information including board members, committee compositions, company secretary changes, and main contact details. [Board of Directors](index=3&type=section&id=Board%20of%20Directors) This section lists executive, non-executive, and independent non-executive directors, noting changes like Mr. Chen Hao and Mr. Liu Xingwei's resignations and Mr. Song Hailin's appointment. - Executive Director **Mr. Yang Zhangfa** serves as Chairman, and **Ms. Jin Keli** is an Executive Director[3](index=3&type=chunk)[4](index=4&type=chunk) - **Mr. Chen Hao** and **Mr. Liu Xingwei** resigned as Executive Director and Non-executive Director on **February 24, 2025**[3](index=3&type=chunk)[4](index=4&type=chunk) - **Mr. Song Hailin** was appointed as a Non-executive Director on **February 24, 2025**[3](index=3&type=chunk)[4](index=4&type=chunk) [Committees](index=3&type=section&id=Committees) This section details the composition of the Audit, Remuneration, and Nomination Committees, with Mr. Pan Zhaoguo chairing the Audit and Remuneration Committees, and Mr. Huang Jiayi chairing the Nomination Committee; Ms. Jin Keli was appointed to the Nomination Committee on May 28, 2025. - **Mr. Pan Zhaoguo** chairs both the Audit Committee and the Remuneration Committee[3](index=3&type=chunk)[5](index=5&type=chunk) - **Mr. Huang Jiayi** chairs the Nomination Committee, with **Ms. Jin Keli** appointed as a member on **May 28, 2025**[4](index=4&type=chunk)[5](index=5&type=chunk) [Company Secretary](index=4&type=section&id=Company%20Secretary) This section discloses changes in the company secretary role, with Ms. Ng Sau Wai resigning and Ms. Cui Jiaxin appointed as her successor on August 22, 2025. - **Ms. Ng Sau Wai** resigned as Company Secretary on **August 22, 2025**[4](index=4&type=chunk)[5](index=5&type=chunk) - **Ms. Cui Jiaxin** was appointed as Company Secretary on **August 22, 2025**[4](index=4&type=chunk)[5](index=5&type=chunk) [Key Contact Information](index=4&type=section&id=Key%20Contact%20Information) This section provides essential company information including authorized representatives, registered office, headquarters, Hong Kong principal place of business, share registrar, auditor, legal counsel, principal bankers, website, stock code, and listing date. - Authorized representatives are **Mr. Yang Zhangfa** and **Ms. Jin Keli**[6](index=6&type=chunk)[8](index=8&type=chunk) - The company's auditor is **KPMG**[7](index=7&type=chunk)[8](index=8&type=chunk) - The company's stock code is **2869**, and it was listed on **July 12, 2016**[9](index=9&type=chunk) [Definitions](index=6&type=section&id=Definitions) This section defines key terms and abbreviations used in the report, including currency units, company entities, geographical regions, and financial/operational metrics. - "The Period" refers to the **six months ended June 30, 2025**[13](index=13&type=chunk)[14](index=14&type=chunk) - "China," for the purpose of this report and regional reference, excludes Hong Kong, Macau SAR, and Taiwan[11](index=11&type=chunk) [Company Overview](index=8&type=section&id=Company%20Overview) The Group is a leading happiness living service provider in China, offering diversified services across property management, community living, and consulting, covering the entire life cycle of individuals and real estate. - The Group is a leading happiness living service provider in China, offering three types of businesses: property services, community living services, and consulting services[15](index=15&type=chunk)[16](index=16&type=chunk) - As of June 30, 2025, property services managed a contracted GFA of **536.3 million square meters**, covering 197 cities across 31 provinces, municipalities, and autonomous regions nationwide[18](index=18&type=chunk) - Community living services leverage mobile internet and smart community portals to provide daily necessities and quality living products/services, expanding and accelerating the traffic space for living services[18](index=18&type=chunk) - Consulting services utilize brand and professional advantages to offer project planning, design management, construction management, marketing management consulting, and digital product/service solutions to real estate developers and local property management companies[19](index=19&type=chunk) [Historical Financial and Operating Data Highlights](index=11&type=section&id=Historical%20Financial%20and%20Operating%20Data%20Highlights) This section summarizes the company's historical financial and operating performance, including consolidated results, revenue by service line, operating data, financial position, and consolidated cash flow. [Consolidated Results](index=11&type=section&id=Consolidated%20Results) For the six months ended June 30, 2025, revenue increased by 6.1% YoY to RMB 9,288.7 million, gross profit grew by 8.9% to RMB 1,808.1 million, and profit attributable to equity holders increased by 22.6% to RMB 612.8 million, with property services accounting for 71.4% of total revenue. Consolidated Results Summary for the Six Months Ended June 30 | Indicator | 2025 (RMB Thousand) | 2024 (RMB Thousand) | YoY Increase % | | :--- | :--- | :--- | :--- | | Revenue | 9,288,711 | 8,752,891 | 6.1% | | Gross Profit | 1,808,096 | 1,661,030 | 8.9% | | Profit for the Period | 628,828 | 514,419 | 22.2% | | Profit Attributable to Equity Holders | 612,848 | 499,882 | 22.6% | | Earnings Per Share (RMB) | 0.20 | 0.16 | 25.0% | | Gross Profit Margin | 19.5% | 19.0% | +0.5pp | | Net Profit Margin | 6.8% | 5.9% | +0.9pp | Revenue Contribution and Gross Profit Margin by Service Line | Service Line | 2025 Revenue Contribution | 2024 Revenue Contribution | 2025 Gross Profit Margin | 2024 Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | | Property Services | 71.4% | 68.8% | 15.3% | 14.9% | | Community Living Services | 14.6% | 16.5% | 26.6% | 23.4% | | Consulting Services | 14.0% | 14.7% | 33.1% | 32.9% | | Technology Services | - | 2.6% | - | 36.6% | - Technology services have been reclassified under management consulting services within the consulting services segment in **2025**[24](index=24&type=chunk)[25](index=25&type=chunk) [Revenue by Service Line](index=12&type=section&id=Revenue%20by%20Service%20Line) Property services revenue grew by 10.2% YoY, driving overall growth, while community living services revenue decreased by 6.0%, primarily due to a 53.8% drop in home living services revenue, and consulting services revenue slightly increased by 0.6%. Revenue by Service Line for the Six Months Ended June 30 | Service Line | 2025 (RMB Thousand) | 2024 (RMB Thousand) | YoY Increase/Decrease % | | :--- | :--- | :--- | :--- | | Property Services | 6,632,856 | 6,018,592 | 10.2% | | Community Living Services | 1,356,749 | 1,442,815 | -6.0% | | - Community Products and Services | 676,200 | 643,416 | 5.1% | | - Home Living Services | 123,041 | 266,558 | -53.8% | | - Community Space Services | 173,015 | 153,067 | 13.0% | | - Property Asset Management Services | 333,472 | 329,044 | 1.3% | | - Cultural Education Services | 51,021 | 50,730 | 0.6% | | Consulting Services | 1,299,106 | 1,291,484 | 0.6% | | - In-progress Property Services | 1,011,618 | 996,531 | 1.5% | | - Management Consulting Services | 287,488 | 294,953 | -2.5% | | Technology Services | - | - | - | | **Total Revenue** | **9,288,711** | **8,752,891** | **6.1%** | [Operating Data](index=13&type=section&id=Operating%20Data) As of June 30, 2025, GFA under management steadily increased by 11.3% to 536.3 million square meters, but GFA under reserve decreased by 2.9% YoY, while average property fees remained stable. Operating Data Summary for the Six Months Ended June 30 | Indicator | 2025 | 2024 | YoY Increase/Decrease % | | :--- | :--- | :--- | :--- | | Number of Property Service Contracts | 3,639 | 3,356 | 8.4% | | GFA Under Management (Million sq.m.) | 536.3 | 481.7 | 11.3% | | GFA Under Reserve (Million sq.m.) | 347.3 | 357.8 | -2.9% | | GFA Withdrawn (Million sq.m.) | 17.3 | 16.4 | 5.6% | | Average Property Fee (RMB/month/sq.m.) | 3.21 | 3.20 | 0.3% | - The decrease in GFA under reserve is mainly due to the domestic real estate development market environment, with the company prudently expanding in the incremental market and actively withdrawing from some non-core cities and projects with delivery risks[29](index=29&type=chunk) [Financial Position](index=14&type=section&id=Financial%20Position) As of June 30, 2025, total assets slightly decreased, total liabilities reduced, and net assets increased, with improved current and quick ratios, maintained net cash position, increased net cash per share, and enhanced net equity and total asset returns. Financial Position Summary as of June 30 | Indicator | 2025 (RMB Thousand) | 2024 (RMB Thousand) | Change % | | :--- | :--- | :--- | :--- | | Current Assets | 13,561,678 | 12,369,072 | 9.6% | | - Cash and Cash Equivalents | 4,047,465 | 3,026,475 | 33.8% | | - Trade and Other Receivables | 7,030,064 | 6,280,086 | 11.9% | | Non-current Assets | 4,804,098 | 6,178,946 | -22.3% | | Total Assets | 18,365,776 | 18,548,018 | -1.0% | | Current Liabilities | 9,359,497 | 9,074,383 | 3.1% | | Non-current Liabilities | 549,610 | 1,244,488 | -55.8% | | Total Liabilities | 9,909,107 | 10,318,871 | -4.0% | | Net Assets | 8,456,669 | 8,229,147 | 2.8% | | Current Ratio | 1.45x | 1.36x | +0.09x | | Quick Ratio | 1.39x | 1.27x | +0.12x | | Net Debt-to-Equity Ratio | Net Cash | Net Cash | Maintained Net Cash | | Net Cash Per Share | 1.07 | 0.97 | 10.3% | | Return on Net Equity | 7.2% | 6.4% | +0.8pp | | Return on Total Assets | 3.3% | 2.8% | +0.5pp | [Consolidated Cash Flow](index=15&type=section&id=Consolidated%20Cash%20Flow) For the six months ended June 30, 2025, net cash outflow from operating activities increased, net cash outflow from investing activities significantly decreased, and net cash outflow from financing activities slightly reduced, resulting in a decrease in cash and cash equivalents at period-end compared to the beginning of the period. Consolidated Cash Flow Summary for the Six Months Ended June 30 | Indicator | 2025 (RMB Thousand) | 2024 (RMB Thousand) | Change % | | :--- | :--- | :--- | :--- | | Net Cash From/(Used In) Operating Activities | (398,516) | (360,397) | -10.6% | | Net Cash From/(Used In) Investing Activities | (223,371) | (969,646) | 77.0% | | Net Cash Used In Financing Activities | (177,634) | (183,971) | 3.4% | | Net Decrease in Cash and Cash Equivalents | (799,521) | (1,514,014) | 47.2% | | Cash and Cash Equivalents at Period-End | 4,047,465 | 3,026,475 | 33.8% | [Chairman's Statement](index=16&type=section&id=Chairman's%20Statement) The Chairman's statement highlights the company's adherence to "Integrity and Righteousness" and "Quality as Foundation, Innovation for Good, Diligence and Professionalism" values, achieving steady and high-quality performance growth, outlining strategic focus, development drivers, and talent potential, and looking forward to the second half of the year. - The company adheres to its original aspiration of "Services Make Life Better," precisely breaking down strategies into quantifiable, implementable, and improvable execution paths for each business line[34](index=34&type=chunk)[38](index=38&type=chunk) - Property services market expansion focuses on core cities in the Yangtze River Delta, achieving dual upgrades in residential and commercial service spaces, and exporting "Greentown Standards" to the industry[36](index=36&type=chunk)[38](index=38&type=chunk) - Community commercial innovation with a "neighborhood ecosystem" model, community products and services revenue with **stable YoY growth**, and core product demand reach with **YoY improvement**[39](index=39&type=chunk)[45](index=45&type=chunk) - Elderly care/education businesses align with national policy, with home-based elderly care service stations increasing by over **40% YoY**, and domestic cultural education service centers achieving profitability for the first time[40](index=40&type=chunk)[46](index=46&type=chunk) - First-half operating revenue reached **RMB 9,288.7 million**, a **6.1% YoY increase**; profit attributable to equity holders reached **RMB 612.8 million**, a **22.6% YoY increase**[50](index=50&type=chunk)[54](index=54&type=chunk) - The company actively participates in ESG (Environmental, Social, and Governance) initiatives, promotes green and low-carbon development, and builds community welfare units through the "Happiness Village Foundation" while engaging in ecological protection activities[51](index=51&type=chunk)[54](index=54&type=chunk) - In talent development, the company has cultivated **131 outstanding young managers**, added over **8,000 certified professionals**, and achieved a **97.8% certification rate** for project managers[57](index=57&type=chunk)[60](index=60&type=chunk) - In the second half, the company will continue to enhance service density in core regions, deepen urban services and "elderly and children" connections, promote service product iteration and upgrades, and strengthen risk control and compliance management[62](index=62&type=chunk)[65](index=65&type=chunk) [Management Discussion and Analysis](index=21&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a detailed discussion and analysis of the company's financial performance, balance sheet items, liquidity, capital structure, business segment performance, acquisitions, future prospects, and other management disclosures. [Financial Review](index=21&type=section&id=Financial%20Review) This section provides a detailed review of financial performance for the six months ended June 30, 2025, covering key metrics such as revenue, costs, gross profit, expenses, core operating profit, expected credit losses on financial instruments, other operating expenses, net finance income, share of profits from associates and joint ventures, profit before tax, income tax, and profit for the period. Revenue by Business Segment for the Six Months Ended June 30 | Business Segment | 2025 (RMB Thousand) | % of Total Revenue | 2024 (RMB Thousand) (Restated) | % of Total Revenue (Restated) | YoY % | | :--- | :--- | :--- | :--- | :--- | :--- | | Property Services | 6,632,856 | 71.4% | 6,018,592 | 68.8% | 10.2% | | Community Living Services | 1,356,749 | 14.6% | 1,442,815 | 16.5% | -6.0% | | Consulting Services | 1,299,106 | 14.0% | 1,291,484 | 14.7% | 0.6% | | **Total** | **9,288,711** | **100.0%** | **8,752,891** | **100.0%** | **6.1%** | - Cost of sales increased by **5.5% YoY** to **RMB 7,480.6 million**[77](index=77&type=chunk)[78](index=78&type=chunk) - Gross profit increased by **8.9% YoY** to **RMB 1,808.1 million**, with gross profit margin rising by **0.5 percentage points** to **19.5%**, mainly due to cost control and efficiency improvement measures[80](index=80&type=chunk)[83](index=83&type=chunk) - Selling and marketing expenses decreased by **11.3% YoY** to **RMB 141.4 million**, with selling expense ratio decreasing by **0.3 percentage points** to **1.5%**[81](index=81&type=chunk)[84](index=84&type=chunk) - Administrative expenses decreased by **8.0% YoY** to **RMB 593.0 million**, with administrative expense ratio decreasing by **1.0 percentage point** to **6.4%**, mainly due to organizational streamlining and administrative overhead control[82](index=82&type=chunk)[85](index=85&type=chunk) Gross Profit Margin by Business Line for the Six Months Ended June 30 | Business Line | 2025 Gross Profit Margin | 2024 Gross Profit Margin | Change (Percentage Points) | | :--- | :--- | :--- | :--- | | Property Services | 15.3% | 14.9% | +0.4 | | Community Living Services | 26.6% | 23.4% | +3.2 | | Consulting Services | 33.1% | 32.9% | +0.2 | - Core operating profit increased by **25.3% YoY** to **RMB 1,073.8 million**, mainly due to enhanced revenue quality management and efficiency improvement measures[87](index=87&type=chunk)[91](index=91&type=chunk) - Expected credit losses on financial instruments increased by **34.2% YoY** to **RMB 194.5 million**, primarily due to an increase in trade receivables balance[88](index=88&type=chunk)[92](index=92&type=chunk) - Other operating expenses increased by **86.4% YoY** to **RMB 88.8 million**, mainly due to increased impairment provisions for some long-term equity investments and other assets[89](index=89&type=chunk)[93](index=93&type=chunk) - Net finance income decreased by **10.9% YoY** to **RMB 34.6 million**[90](index=90&type=chunk)[94](index=94&type=chunk)[95](index=95&type=chunk) - Share of profit from associates increased by **RMB 0.6 million** to **RMB 9.7 million**, and share of profit from joint ventures increased by **RMB 4.2 million** to **RMB 6.3 million**[96](index=96&type=chunk)[101](index=101&type=chunk) - Profit before tax increased by **22.7% YoY** to **RMB 855.8 million**, mainly due to expanded operating scale and improved management efficiency[97](index=97&type=chunk)[102](index=102&type=chunk) - Income tax increased by **23.8% YoY** to **RMB 226.9 million**, with effective tax rate rising by **0.2 percentage points** to **26.5%**[98](index=98&type=chunk)[103](index=103&type=chunk) - Profit for the period increased by **22.2% YoY** to **RMB 628.8 million**, with net profit margin rising by **0.9 percentage points** to **6.8%**[99](index=99&type=chunk)[100](index=100&type=chunk)[104](index=104&type=chunk)[105](index=105&type=chunk) [Balance Sheet Items](index=26&type=section&id=Balance%20Sheet%20Items) This section outlines changes in key balance sheet items as of June 30, 2025, including investment properties, property, plant and equipment, right-of-use assets, intangible assets, trade and other receivables, trade and other payables, and lease liabilities. - Net book value of investment properties, property, plant and equipment, and right-of-use assets increased by **1.0%** to **RMB 1,241.9 million**[107](index=107&type=chunk)[112](index=112&type=chunk) - Intangible assets decreased by **7.3%** to **RMB 353.2 million**[108](index=108&type=chunk)[113](index=113&type=chunk) - Trade and other receivables increased by **26.1%** to **RMB 7,030.1 million**, mainly due to business scale growth[109](index=109&type=chunk)[114](index=114&type=chunk) - Trade and other payables increased by **13.7%** to **RMB 5,651.3 million**, mainly due to increased procurement scale and dividends payable[110](index=110&type=chunk)[115](index=115&type=chunk) - Total lease liabilities decreased by **11.6%** to **RMB 630.5 million**[111](index=111&type=chunk)[116](index=116&type=chunk) [Liquidity, Reserves and Capital Structure](index=27&type=section&id=Liquidity,%20Reserves%20and%20Capital%20Structure) The company maintained a sound financial position during the period, with increased current assets, decreased cash and cash equivalents but increased time deposits, disclosed long-term and short-term bank loans, and a slight increase in the debt-to-asset ratio. - Current assets increased by **7.2%** to **RMB 13,561.7 million**[117](index=117&type=chunk)[121](index=121&type=chunk) - Cash and cash equivalents decreased by **16.6%** to **RMB 4,047.5 million**, while time deposits increased by **25.3%** to **RMB 1,400.9 million**[117](index=117&type=chunk)[121](index=121&type=chunk) - Long-term borrowings were **RMB 21.2 million**, and short-term borrowings were **RMB 33.6 million**, primarily for daily operating needs[118](index=118&type=chunk)[119](index=119&type=chunk)[121](index=121&type=chunk) - The debt-to-asset ratio (total debt divided by total assets) was **54.0%**, an increase of **2.3 percentage points** from December 31, 2024[120](index=120&type=chunk)[122](index=122&type=chunk) [Business Segment Performance](index=28&type=section&id=Business%20Segment%20Performance) This section analyzes the performance of the three major business segments: property services, community living services, and consulting services, noting steady growth in property services revenue and gross profit with expanding GFA, a slight decrease in community living services revenue despite growth in certain sub-segments, and a marginal increase in consulting services revenue with growth in in-progress property services but a decline in management consulting services. [Property Services](index=28&type=section&id=Property%20Services) Property services, the Group's largest revenue and gross profit contributor, saw revenue grow by 10.2% to RMB 6,632.9 million and gross profit by 13.3% to RMB 1,017.8 million, with GFA under management increasing by 11.3% to 536.3 million square meters, though GFA under reserve decreased by 2.9% due to market conditions. - Property services revenue reached **RMB 6,632.9 million**, a **10.2% YoY increase**, accounting for **71.4%** of total revenue[123](index=123&type=chunk)[124](index=124&type=chunk) - Property services gross profit reached **RMB 1,017.8 million**, a **13.3% YoY increase**, accounting for **56.3%** of total gross profit[123](index=123&type=chunk)[124](index=124&type=chunk) - GFA under management was **536.3 million square meters**, a **11.3% YoY increase**, with a net increase of **54.6 million square meters**[124](index=124&type=chunk) - GFA under reserve was **347.3 million square meters**, a **2.9% YoY decrease**, mainly affected by the domestic real estate development market environment[128](index=128&type=chunk) - The number of managed projects reached **3,639**, covering 197 cities across 31 provinces, municipalities, and autonomous regions nationwide[128](index=128&type=chunk) Property Services GFA Under Management and Revenue by Region as of June 30 | Region | % of GFA Under Management | % of Total Revenue | | :--- | :--- | :--- | | Hangzhou | 16.7% | 34.7% | | Ningbo | 7.0% | 6.0% | | Yangtze River Delta Region (Excluding Hangzhou, Ningbo) | 35.1% | 29.0% | | Bohai Rim Economic Circle Region | 15.6% | 12.3% | | Pearl River Delta Region | 9.2% | 7.5% | | Other | 16.4% | 10.5% | | **Total** | **100.0%** | **100.0%** | [Community Living Services](index=30&type=section&id=Community%20Living%20Services) Community living services revenue decreased by 6.0% YoY to RMB 1,356.7 million, but gross profit increased by 6.8% to RMB 360.5 million, with growth in community products and services, community space services, and property asset management services, while home living services revenue significantly declined due to the reclassification of Zhejiang Greentown House Service System Co., Ltd. as a joint venture. - Community living services revenue was **RMB 1,356.7 million**, a **6.0% YoY decrease**, accounting for **14.6%** of total revenue[129](index=129&type=chunk)[130](index=130&type=chunk) - Community living services gross profit reached **RMB 360.5 million**, a **6.8% YoY increase**, accounting for **19.9%** of total gross profit[129](index=129&type=chunk)[133](index=133&type=chunk) Community Living Services Revenue Breakdown for the Six Months Ended June 30 | Service Type | 2025 Revenue (RMB Thousand) | % of Total | YoY % | 2024 Revenue (RMB Thousand) | | :--- | :--- | :--- | :--- | :--- | | Community Products and Services | 676,200 | 49.8% | 5.1% | 643,416 | | Home Living Services | 123,041 | 9.1% | -53.8% | 266,558 | | Community Space Services | 173,015 | 12.7% | 13.0% | 153,067 | | Property Asset Management Services | 333,472 | 24.6% | 1.3% | 329,044 | | Cultural Education Services | 51,021 | 3.8% | 0.6% | 50,730 | | **Total** | **1,356,749** | **100.0%** | **-6.0%** | **1,442,815** | - Home living services revenue significantly decreased by **53.8%**, mainly due to the reclassification of Zhejiang Greentown House Service System Co., Ltd. as a joint venture following management structure adjustments[130](index=130&type=chunk)[138](index=138&type=chunk) - Community products and services rely on a "convenience + relationship" community retail system, optimizing product structure, focusing on popular items, and enhancing competitiveness and premium capabilities[136](index=136&type=chunk)[137](index=137&type=chunk) - Cultural education services deepen a multi-brand strategy, building a matrix of "Greentown Wonderful Garden + Inclusive Childcare Park + Aomeng International Garden" three brands, and actively collaborating with the government to establish inclusive childcare centers[143](index=143&type=chunk)[145](index=145&type=chunk) [Consulting Services](index=35&type=section&id=Consulting%20Services) Consulting services revenue slightly increased by 0.6% YoY to RMB 1,299.1 million, with gross profit growing by 1.0% to RMB 429.8 million, driven by a 1.5% increase in in-progress property services revenue, while management consulting services revenue declined by 2.5% due to the real estate market environment. - Consulting services revenue was **RMB 1,299.1 million**, a **0.6% YoY increase**, accounting for **14.0%** of total revenue[146](index=146&type=chunk)[147](index=147&type=chunk) - Consulting services gross profit reached **RMB 429.8 million**, a **1.0% YoY increase**, accounting for **23.8%** of total gross profit[146](index=146&type=chunk)[149](index=149&type=chunk) Consulting Services Revenue Breakdown for the Six Months Ended June 30 | Service Type | 2025 Revenue (RMB Thousand) | % of Total | YoY % | 2024 Revenue (RMB Thousand) | | :--- | :--- | :--- | :--- | :--- | | In-progress Property Services | 1,011,618 | 77.9% | 1.5% | 996,531 | | Management Consulting Services | 287,488 | 22.1% | -2.5% | 294,953 | | **Total** | **1,299,106** | **100.0%** | **0.6%** | **1,291,484** | - In-progress property services revenue increased by **1.5%**, mainly through expanding high-end projects in core cities and extending service areas[150](index=150&type=chunk)[151](index=151&type=chunk) - Management consulting services revenue decreased by **2.5%**, mainly affected by the domestic real estate development market environment, and the company will continue to implement its city-deepening strategy to enhance competitiveness[150](index=150&type=chunk)[152](index=152&type=chunk) [Acquisition and Future Prospects](index=37&type=section&id=Acquisition%20and%20Future%20Prospects) The company adheres to an acquisition and investment strategy that emphasizes overall prudence and synergy with existing businesses, focusing on core operations, strictly implementing investment principles, prioritizing asset-light and stable growth, and valuing high-quality development over rapid expansion. - The investment strategy focuses on core businesses, strengthening operational efficiency management of acquired companies, and accelerating loss-making projects' cessation or disposal[154](index=154&type=chunk)[156](index=156&type=chunk) - Investment direction is guided by the Group's development strategy, emphasizing synergy with existing businesses[154](index=154&type=chunk)[156](index=156&type=chunk) - The investment model is primarily asset-light and stable, focusing on quality expansion of businesses, with rational and prudent investment[154](index=154&type=chunk)[156](index=156&type=chunk) - The company believes that high-quality development is more valuable than high-speed growth, and investments should support core businesses to maintain business scale and efficiency at the industry forefront[155](index=155&type=chunk)[157](index=157&type=chunk) [Other Management Disclosures](index=38&type=section&id=Other%20Management%20Disclosures) This section covers the company's disclosures regarding material litigation, foreign exchange risk, employee and remuneration policies, interim dividends, contingent liabilities, financial policies, asset pledges, material investments, and post-balance sheet events. - As of the report date, there were no outstanding material legal proceedings or claims that would affect the Group's normal operations[158](index=158&type=chunk)[163](index=163&type=chunk) - The Group primarily operates in China, with most transactions conducted in RMB, resulting in limited foreign exchange risk, and no financial instruments are used for hedging[159](index=159&type=chunk)[164](index=164&type=chunk) - As of June 30, 2025, the Group had **49,110 employees**, a **3.1% YoY increase**; total employee costs were **RMB 3,028.4 million**, a **5.0% YoY increase**, mainly due to new project deliveries and rising labor costs[162](index=162&type=chunk)[165](index=165&type=chunk) - The Board resolved not to declare any interim dividend for the six months ended June 30, 2025[166](index=166&type=chunk)[174](index=174&type=chunk) - As of June 30, 2025, the Group had no material contingent liabilities[167](index=167&type=chunk)[175](index=175&type=chunk) - As of June 30, 2025, a non-wholly owned subsidiary of the Group had a bank loan of **RMB 8.5 million** for purchasing office buildings, with the purchased property pledged as collateral[169](index=169&type=chunk)[177](index=177&type=chunk) - During the period, the Group had no material investments, significant acquisitions or disposals of subsidiaries, associates, and joint ventures, nor any future plans for material investments and capital assets[170](index=170&type=chunk)[171](index=171&type=chunk)[172](index=172&type=chunk)[179](index=179&type=chunk)[180](index=180&type=chunk)[181](index=181&type=chunk) - No material events occurred after June 30, 2025, and up to the date of this report that could affect the Group[173](index=173&type=chunk)[182](index=182&type=chunk) [Investor Relationship](index=40&type=section&id=Investor%20Relationship) The company is committed to maintaining high transparency and fostering effective interaction with shareholders, investors, fund managers, analysts, and the public through various channels to enhance shareholder value and stabilize stock price performance, actively participating in capital market activities and gaining market recognition. - The company aims to build long-term, interactive relationships by providing regular, timely, accurate, and complete corporate information, enabling shareholders and investors to understand the company's operations, value, and business development[183](index=183&type=chunk)[185](index=185&type=chunk) - During the period, the company communicated with a total of **599 investors** through phone calls or meetings[188](index=188&type=chunk)[190](index=190&type=chunk) - The company participated in various promotional activities organized by multiple brokers and investment banks, including UBS, Industrial Securities, Zhongtai Securities, CITIC Securities, and Citi[191](index=191&type=chunk) - During the period, the company organized **11 on-site visits**, inviting investors, fund managers, analysts, and media to visit its headquarters and managed communities[193](index=193&type=chunk)[194](index=194&type=chunk)[196](index=196&type=chunk) - The company holds two earnings announcements and press conferences annually and received **17 investment reports** from brokers, with most ratings being "Buy" or "Outperform"[197](index=197&type=chunk)[198](index=198&type=chunk)[199](index=199&type=chunk)[200](index=200&type=chunk) [Corporate Governance and Other Information](index=44&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section details the company's corporate governance practices, including compliance with the Corporate Governance Code and Model Code for Securities Transactions by Directors, discloses changes in directors and senior management, and share repurchase and cancellation activities, along with information on directors', chief executive's, and substantial shareholders' interests and short positions in shares, and share option schemes. [Corporate Governance Practice](index=44&type=section&id=Corporate%20Governance%20Practice) The company is committed to maintaining high standards of corporate governance, has adopted the Corporate Governance Code set out in Appendix C1 of the Listing Rules, and complied with all applicable provisions for the six months ended June 30, 2025. - The company has adopted the Corporate Governance Code set out in Appendix C1 of the Listing Rules and complied with all applicable code provisions during the period[201](index=201&type=chunk)[202](index=202&type=chunk)[206](index=206&type=chunk) [Model Code for Securities Transactions by Directors](index=44&type=section&id=Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules, and all directors confirmed compliance for the six months ended June 30, 2025. - The company has adopted the Model Code for Securities Transactions by Directors as set out in Appendix C3 of the Listing Rules[203](index=203&type=chunk)[207](index=207&type=chunk) - All directors confirmed compliance with the Model Code for the six months ended June 30, 2025[203](index=203&type=chunk)[207](index=207&type=chunk) [Changes in Directors' and Senior Management's Information](index=44&type=section&id=Changes%20in%20Directors'%20and%20Senior%20Management's%20Information) Executive Director Ms. Jin Keli was appointed as a member of the Nomination Committee on May 28, 2025, and Independent Non-executive Director Mr. Pan Zhaoguo was appointed as an independent non-executive director of Konka Group Co., Ltd. on August 14, 2025. - Executive Director **Ms. Jin Keli** was appointed as a member of the Nomination Committee on **May 28, 2025**[204](index=204&type=chunk)[208](index=208&type=chunk) - Independent Non-executive Director **Mr. Pan Zhaoguo** was appointed as an independent non-executive director of Konka Group Co., Ltd. on **August 14, 2025**[205](index=205&type=chunk)[208](index=208&type=chunk) [Change of Company Secretary and Process Agent](index=45&type=section&id=Change%20of%20Company%20Secretary%20and%20Process%20Agent) Ms. Ng Sau Wai resigned as Company Secretary and Process Agent due to work reallocation on August 22, 2025, and Ms. Cui Jiaxin was appointed as her successor on the same day. - **Ms. Ng Sau Wai** resigned as Company Secretary and Process Agent on **August 22, 2025**[210](index=210&type=chunk)[214](index=214&type=chunk) - **Ms. Cui Jiaxin** was appointed as Company Secretary and Process Agent on **August 22, 2025**[211](index=211&type=chunk)[214](index=214&type=chunk) [Purchase, Sale or Redemption of the Listed Securities of the Company](index=45&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Listed%20Securities%20of%20the%20Company) For the six months ended June 30, 2025, the company repurchased and cancelled a total of 20,030,000 shares on the Stock Exchange for a total of HKD 64,954,223.11, with the Board believing that share repurchases enhance share value and serve the overall interests of shareholders. - For the six months ended June 30, 2025, the company repurchased **17,170,000 shares** on the Stock Exchange for a total of **HKD 64,954,223.11**[212](index=212&type=chunk)[215](index=215&type=chunk)[217](index=217&type=chunk) - Together with **2,860,000 shares** repurchased in 2024, a total of **20,030,000 shares** were cancelled on **May 8, 2025**[212](index=212&type=chunk)[215](index=215&type=chunk) - The Board believes that the trading price of the shares did not adequately reflect their intrinsic value and future business prospects, and share repurchases can enhance share value and improve shareholder returns[213](index=213&type=chunk)[215](index=215&type=chunk) - As of June 30, 2025, the company did not hold any treasury shares[217](index=217&type=chunk)[219](index=219&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures](index=46&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures) This section discloses the interests and short positions of directors and the chief executive in the company's shares, underlying shares, and debentures as of June 30, 2025, including controlled corporation interests, spouse interests, and beneficial interests. Directors' and Chief Executive's Interests in Shares as of June 30 | Name | Capacity/Nature of Interest | Number of Shares (Excluding Equity Derivatives) | Number of Underlying Shares Granted Under 2018 Share Option Scheme | Number of Underlying Shares Granted Under 2023 Share Option Scheme | Approximate % of Company's Issued Share Capital | Long/Short Position | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Mr. Shou Bainian | Interest of controlled corporation | 1,020,000,000 | – | – | 32.43 | Long Position | | Ms. Xia Yibo | Interest of controlled corporation | 1,020,000,000 | – | – | 32.43 | Long Position | | Ms. Xia Yibo | Spouse interest | 3,500,000 | – | – | 0.11 | Long Position | | Ms. Li Hairong | Interest of controlled corporation | 423,868,339 | – | – | 13.48 | Long Position | | Ms. Li Hairong | Spouse interest | 28,000,000 | – | – | 0.89 | Long Position | | Ms. Li Hairong | Beneficial interest | – | 800,000 | – | 0.03 | Long Position | | Mr. Yang Zhangfa | Beneficial interest | 60,000,000 | – | – | 1.91 | Long Position | | Mr. Yang Zhangfa | Beneficial interest | – | 3,520,000 | 4,500,000 | 0.25 | Long Position | | Ms. Jin Keli | Beneficial interest | 4,240,000 | – | – | 0.13 | Long Position | | Ms. Jin Keli | Beneficial interest | – | 4,060,000 | 3,000,000 | 0.22 | Long Position | - **Mr. Shou Bainian**, **Ms. Xia Yibo**, and **Ms. Li Hairong** indirectly hold a significant number of shares through controlled corporations[223](index=223&type=chunk)[225](index=225&type=chunk)[226](index=226&type=chunk) - **Mr. Yang Zhangfa** and **Ms. Jin Keli** hold beneficial shares and share options[226](index=226&type=chunk) [Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares](index=49&type=section&id=Substantial%20Shareholders'%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares) This section discloses the interests and short positions of substantial shareholders, other than directors and the chief executive, in the company's shares or underlying shares as of June 30, 2025, including Orchid Garden Investment, Mr. Song Weiping, Lilac International Investment, Mr. Ju Jianhua, Longfor Group Holdings Limited, and Yiheng Capital. Substantial Shareholders' Interests in Shares as of June 30 | Shareholder Name/Entity | Capacity/Nature of Interest | Number of Shares | Approximate % of Company's Issued Share Capital | Long/Short Position | | :--- | :--- | :--- | :--- | :--- | | Orchid Garden Investment | Beneficial interest | 1,020,000,000 | 32.43 | Long Position | | Osmanthus Garden Investment | Interest of controlled corporation | 1,020,000,000 | 32.43 | Long Position | | Delta House Limited | Beneficial interest | 3,500,000 | 0.11 | Long Position | | Mr. Song Weiping | Interest of controlled corporation | 1,023,500,000 | 32.54 | Long Position | | Lily International Investment | Interest of controlled corporation | 1,020,000,000 | 32.43 | Long Position | | Ms. Yao Wanjing | Spouse interest | 1,020,000,000 | 32.43 | Long Position | | ShenaLan International Investment | Interest of controlled corporation | 1,020,000,000 | 32.43 | Long Position | | Lilac International Investment | Beneficial interest | 423,868,339 | 13.48 | Long Position | | Mr. Ju Jianhua | Spouse interest | 424,668,339 | 13.50 | Long Position | | Mr. Ju Jianhua | Beneficial interest | 28,000,000 | 0.89 | Long Position | | Longfor Group Holdings Limited | Interest of controlled corporation | 294,674,363 | 9.37 | Long Position | | Yiheng Capital Partners, L.P. | Beneficial interest | 163,381,816 | 5.19 | Long Position | | Yiheng Capital, LLC | Interest of controlled corporation | 163,381,816 | 5.19 | Long Position | | Yiheng Capital Management, L.P. | Investment manager | 163,381,816 | 5.19 | Long Position | | Yiheng Capital Management, LLC | Interest of controlled corporation | 163,381,816 | 5.19 | Long Position | - Orchid Garden Investment, Osmanthus Garden Investment, Lily International Investment, and ShenaLan International Investment are considered parties acting in concert, collectively holding a significant number of shares[233](index=233&type=chunk)[235](index=235&type=chunk)[236](index=236&type=chunk) - **Mr. Song Weiping** holds shares through Osmanthus Garden Investment and Delta House Limited, and his spouse, **Ms. Xia Yibo**, is also deemed to have relevant interests[237](index=237&type=chunk) - **Yiheng Capital** and its affiliated entities hold **163,381,816 shares**, representing approximately **5.19%** of the issued shares[232](index=232&type=chunk)[237](index=237&type=chunk) [Share Option Schemes](index=52&type=section&id=Share%20Option%20Schemes) This section details the grant, exercise, lapse, and cancellation of the company's 2018 and 2023 share option schemes, including the number of options for directors and employees, exercise prices, vesting periods, and performance targets, with a total of 84,951,120 unexercised options under the 2023 scheme as of June 30, 2025. - The **2018 Share Option Scheme** was terminated on **June 16, 2023**, and as of June 30, 2025, the total number of options available for grant under this scheme was zero[242](index=242&type=chunk)[253](index=253&type=chunk) - The **2023 Share Option Scheme** was adopted on **June 16, 2023**, to replace the 2018 scheme[248](index=248&type=chunk)[254](index=254&type=chunk) - On June 10, 2025, the company granted a total of **19,227,680 share options** to senior management and certain employees, with an exercise price of **HKD 4.310 per share**[250](index=250&type=chunk)[254](index=254&type=chunk) - As of June 30, 2025, the total number of unexercised share options under the 2023 Share Option Scheme was **84,951,120**[251](index=251&type=chunk)[254](index=254&type=chunk) - The vesting period for share options is **3 years**, and is subject to performance targets such as the Group's core operating profit growth rate and individual performance levels[264](index=264&type=chunk)[265](index=265&type=chunk) Details of Share Option Movements for the Six Months Ended June 30 | Indicator | 2025 (Thousand Options) | 2024 (Thousand Options) | | :--- | :--- | :--- | | Unexercised at Beginning of Year | 208,399 | 151,697 | | Forfeited During the Period | (8,950) | (14,541) | | Granted During the Period | 19,228 | 71,243 | | Exercised During the Period | (1,644) | – | | Unexercised at End of Period | 217,033 | 208,399 | | Exercisable at End of Period | 121,220 | 110,278 | - The fair value of share options is estimated using a binomial model, with input variables including forfeiture rate, expected volatility, expected dividends, and risk-free interest rate[430](index=430&type=chunk)[431](index=431&type=chunk)[432](index=432&type=chunk) [Directors' Rights to Acquire Shares or Debentures](index=59&type=section&id=Directors'%20Rights%20to%20Acquire%20Shares%20or%20Debentures) For the six months ended June 30, 2025, neither the company nor any of its subsidiaries entered into any arrangements enabling directors to acquire benefits by purchasing shares or debentures of the company or any other body corporate. - During the period, neither the company nor any of its subsidiaries entered into any arrangements enabling directors to acquire benefits by purchasing shares or debentures of the company or any other body corporate[267](index=267&type=chunk)[270](index=270&type=chunk) [Audit Committee](index=59&type=section&id=Audit%20Committee) The Audit Committee, comprising four independent non-executive directors with Mr. Pan Zhaoguo as chairman, is responsible for reviewing and overseeing the company's financial reporting process, risk management, and internal controls, and has reviewed the unaudited interim financial statements and interim results for the period. - The Audit Committee consists of four independent non-executive directors, with **Mr. Pan Zhaoguo** serving as Chairman[268](index=268&type=chunk)[271](index=271&type=chunk) - Its primary responsibilities include reviewing and overseeing the company's financial reporting process, risk management, and internal controls[268](index=268&type=chunk)[271](index=271&type=chunk) - The Committee has reviewed the Group's unaudited interim financial statements and interim results for the period[269](index=269&type=chunk)[272](index=272&type=chunk) [Review Report](index=60&type=section&id=Review%20Report) KPMG has reviewed the interim financial report for the six months ended June 30, 2025, in accordance with Hong Kong Standard on Review Engagements 2410, concluding that nothing has come to their attention to suggest the interim financial report is not prepared in all material respects in accordance with Hong Kong Accounting Standard 34. - **KPMG** has reviewed the interim financial report in accordance with Hong Kong Standard on Review Engagements 2410[276](index=276&type=chunk)[278](index=278&type=chunk) - The review concluded that nothing has come to their attention to suggest the interim financial report is not prepared in all material respects in accordance with Hong Kong Accounting Standard 34[279](index=279&type=chunk)[280](index=280&type=chunk) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=62&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, revenue from continuing operations increased by 6.1% YoY to RMB 9,288.7 million, and profit for the period grew by 22.2% to RMB 628.8 million, with profit attributable to equity holders of RMB 612.8 million and basic earnings per share of RMB 0.195. Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary for the Six Months Ended June 30 | Indicator | 2025 (RMB Thousand) | 2024 (RMB Thousand) (Restated) | | :--- | :--- | :--- | | Revenue | 9,288,711 | 8,752,891 | | Cost of Sales | (7,480,615) | (7,091,861) | | Gross Profit | 1,808,096 | 1,661,030 | | Operating Profit | 802,501 | 647,670 | | Profit Before Tax | 855,770 | 697,724 | | Income Tax | (226,942) | (183,305) | | Profit for the Period | 628,828 | 514,419 | | Profit Attributable to Equity Holders of the Company | 612,848 | 503,585 | | Basic Earnings Per Share (RMB) | 0.195 | 0.158 | | Diluted Earnings Per Share (RMB) | 0.195 | 0.158 | - In other comprehensive income, exchange differences arising from the translation of financial statements resulted in a net loss of **RMB 86,570 thousand**[283](index=283&type=chunk) - Data related to discontinued operations (primarily the business of Montessori Academy Group Holdings Pty Ltd) has been restated[282](index=282&type=chunk)[285](index=285&type=chunk) [Consolidated Statement of Financial Position](index=65&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets were RMB 18,365.8 million, a slight decrease from the end of 2024, with net current assets increasing, total liabilities decreasing, and net assets growing to RMB 8,456.7 million. Consolidated Statement of Financial Position Summary as of June 30, 2025 | Indicator | 2025 June 30 (RMB Thousand) | 2024 December 31 (RMB Thousand) | | :--- | :--- | :--- | | Non-current Assets | 4,804,098 | 5,044,528 | | Current Assets | 13,561,678 | 12,649,296 | | **Total Assets** | **18,365,776** | **17,693,824** | | Current Liabilities | 9,359,497 | 8,528,388 | | Non-current Liabilities | 549,610 | 622,379 | | **Total Liabilities** | **9,909,107** | **9,150,767** | | **Net Assets** | **8,456,669** | **8,543,057** | | Total Equity Attributable to Equity Holders of the Company | 7,706,262 | 7,788,687 | | Non-controlling Interests | 750,407 | 754,370 | | **Total Equity** | **8,456,669** | **8,543,057** | - Cash and cash equivalents were **RMB 4,047.5 million**, and trade and other receivables were **RMB 7,030.1 million**[287](index=287&type=chunk) - Trade and other payables were **RMB 5,651.3 million**, and contract liabilities were **RMB 2,443.8 million**[287](index=287&type=chunk) [Consolidated Statement of Changes in Equity](index=67&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, total equity attributable to equity holders was RMB 7,706.3 million, with profit for the period of RMB 612.8 million, but total equity slightly decreased due to factors such as exchange adjustments and share repurchases and cancellations. Consolidated Statement of Changes in Equity Summary for the Six Months Ended June 30 | Item | 2025 January 1 (RMB Thousand) | Changes During the Period (RMB Thousand) | 2025 June 30 (RMB Thousand) | | :--- | :--- | :--- | :--- | | Share Capital | 27 | – | 27 | | Share Premium | 2,577,453 | (60,022) | 1,951,045 | | Share Option Reserve | 178,258 | 18,829 | 195,999 | | Exchange Reserve | (129,096) | (86,570) | (215,666) | | Retained Profits | 5,289,445 | 612,848 | 5,902,293 | | Total Equity Attributable to Equity Holders of the Company | 7,788,687 | (82,425) | 7,706,262 | | Non-controlling Interests | 754,370 | (3,963) | 750,407 | | **Total Equity** | **8,543,057** | **(86,388)** | **8,456,669** | - Profit for the period was **RMB 612.8 million**, and net other comprehensive income was **RMB (86,606) million**[291](index=291&type=chunk) - Share repurchases and cancellations resulted in a decrease in share premium of **RMB 60,022 thousand**[291](index=291&type=chunk) [Condensed Consolidated Cash Flow Statement](index=69&type=section&id=Condensed%20Consolidated%20Cash%20Flow%20Statement) For the six months ended June 30, 2025, net cash used in operating activities was RMB 398.5 million, net cash used in investing activities was RMB 223.4 million, and net cash used in financing activities was RMB 177.6 million, with cash and cash equivalents at period-end totaling RMB 4,047.5 million. Condensed Consolidated Cash Flow Statement Summary for the Six Months Ended June 30 | Activity Type | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Net Cash Used In Operating Activities | (398,516) | (360,397) | | Net Cash Used In Investing Activities | (223,371) | (969,646) | | Net Cash Used In Financing Activities | (177,634) | (183,971) | | Net Decrease in Cash and Cash Equivalents | (799,521) | (1,514,014) | | Cash and Cash Equivalents at Period-End | 4,047,465 | 3,026,475 | - Cash outflow from investing activities significantly decreased, mainly due to reduced payments for the purchase of investment properties, property, plant and equipment, right-of-use assets, and intangible assets, as well as increased proceeds from the redemption of financial assets[294](index=294&type=chunk) - Cash outflow from financing activities slightly decreased, mainly due to reduced proceeds from new bank loans and other borrowings, but also a corresponding reduction in repayment of bank loans[295](index=295&type=chunk) [Notes to the Unaudited Interim Financial Report](index=71&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Financial%20Report) This section provides detailed notes to the unaudited interim financial report, covering the basis of preparation, changes in accounting policies, revenue and segment reporting, other income and net losses, profit before taxation, income tax, earnings per share, investment properties, property, plant and equipment, goodwill, interests in associates and joint ventures, other financial assets, trade and other receivables, restricted bank balances, time deposits and cash and cash equivalents, bank loans, contract liabilities, trade and other payables, capital, reserves and dividends, fair value measurement of financial instruments, commitments, material related party transactions, and discontinued operations. [Basis of Preparation](index=71&type=section&id=Basis%20of%20Preparation) This interim financial report is prepared in accordance with applicable disclosure provisions of the Listing Rules of The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the HKICPA, authorized for issue on August 22, 2025, and has been reviewed by KPMG. - The company was incorporated in the Cayman Islands on **November 24, 2014**, and its shares were listed on the Main Board of the Stock Exchange on **July 12, 2016**[297](index=297&type=chunk)[301](index=301&type=chunk) - The interim financial report is prepared using the same accounting policies adopted in the 2024 annual financial statements, except for changes in accounting policies expected to be reflected in the 2025 annual financial statements[299](index=299&type=chunk)[301](index=301&type=chunk) - This interim financial report is unaudited but has been reviewed by **KPMG** in accordance with Hong Kong Standard on Review Engagements 2410[303](index=303&type=chunk)[306](index=306&type=chunk) [Changes in Accounting Policies](index=72&type=section&id=Changes%20in%20Accounting%20Policies) The Group applied amendments to HKAS 21 "The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability" during the period, but it had no material impact on this interim report as the Group did not engage in related transactions, and no new standards or interpretations not yet effective were applied. - The Group applied amendments to **HKAS 21 "The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability,"** but it had no material impact on this interim report[304](index=304&type=chunk)[307](index=307&type=chunk) - The Group did not apply any new standards or interpretations not yet effective during this accounting period[305](index=305&type=chunk)[307](index=307&type=chunk) [Revenue and Segment Reporting](index=73&type=section&id=Revenue%20and%20Segment%20Reporting) The Group's revenue primarily derives from three business segments: property services, community living services, and consulting services, with technology services reclassified to management consulting services within the consulting segment for clearer business representation, and the Group manages its business by geographical location, reporting seven reportable segments. Revenue by Major Service Line for the Six Months Ended June 30 | Service Line | 2025 (RMB Thousand) | 2024 (RMB Thousand) (Restated) | | :--- | :--- | :--- | | Property Services | 6,632,856 | 6,018,592 | | Community Living Services | 1,332,133 | 1,413,451 | | Consulting Services | 1,299,106 | 1,291,484 | | Gross Rental Income from Investment Properties (Community Living Services) | 24,616 | 29,364 | | **Total** | **9,288,711** | **8,752,891** | - Technology services have been reclassified to management consulting services within the consulting services segment, and relevant comparative data has been restated[313](index=313&type=chunk)[317](index=317&type=chunk) - The Group manages its business by geographical location, divided into seven reportable segments: Hangzhou, Yangtze River Delta region, Pearl River Delta region, Bohai Rim Economic Circle region, Australia (discontinued operations), other overseas and Hong Kong regions, and other regions in mainland China[315](index=315&type=chunk)[319](index=319&type=chunk)[320](index=320&type=chunk)[325](index=325&type=chunk) - Segment assets include all non-current and current assets (excluding deferred tax assets), and segment liabilities include trade and other payables and bank borrowings directly managed by the segment (excluding current and deferred tax liabilities)[321](index=321&type=chunk)[323](index=323&type=chunk) [Other Revenue and Other Net Loss](index=78&type=section&id=Other%20Revenue%20and%20Other%20Net%20Loss) For the six months ended June 30, 2025, other revenue primarily from government grants increased YoY, while other net losses were mainly affected by unrealized losses on convertible notes, fund losses, and increased impairment provisions for long-term equity investments. Other Revenue Summary for the Six Months Ended June 30 | Item | 2025 (RMB Thousand) | 2024 (RMB Thousand) (Restated) | | :--- | :--- | :--- | | Government Grants | 30,785 | 16,503 | | Other | 8,480 | 6,128 | | **Total** | **39,265** | **22,631** | Other Net Loss Summary for the Six Months Ended June 30 | Item | 2025 (RMB Thousand) | 2024 (RMB Thousand) (Restated) | | :--- | :--- | :--- | | Net Loss on Disposal of Property, Plant and Equipment | (3,498) | (445) | | Net Realized and Unrealized (Losses)/Gains on Financial Assets at Fair Value Through Profit or Loss | (43,299) | (26,125) | | Net Exchange Gains/(Losses) | 10,163 | (12,751) | | **Total** | **(27,184)** | **(39,325)** | - Unrealized losses of **RMB 49,158 thousand** were recorded on convertible notes, and fund losses of **RMB 28,084 thousand** were recorded[331](index=331&type=chunk) [Profit Before Taxation from Continuing Operations](index=79&type=section&id=Profit%20Before%20Taxation%20from%20Continuing%20Operations) This section details various factors affecting profit before taxation, including net finance income, staff costs, expected credit losses on financial instruments, impairment losses on goodwill and interests in associates, depreciation, amortization, and cost of inventories. Net Finance Income for the Six Months Ended June 30 | Item | 2025 (RMB Thousand) | 2024 (RMB Thousand) (Restated) | | :--- | :--- | :--- | | Interest Income from Financial Assets Measured at Amortized Cost | (50,024) | (55,086) | | Interest Expense on Bank Loans | 1,047 | 3,857 | | Interest Expense on Lease Liabilities | 14,347 | 12,365 | | **Net Finance Income** | **(34,630)** | **(38,864)** | Staff Costs for the Six Months Ended June 30 | Item | 2025 (RMB Thousand) | 2024 (RMB Thousand) (Restated) | | :--- | :--- | :--- | | Salaries and Other Benefits | 2,584,021 | 2,456,055 | | Equity-settled Share-based Payment Expenses | 18,829 | 10,641 | | Defined Contribution Plan Contributions | 425,597 | 418,558 | | **Total** | **3,028,447** | **2,885,254** | Other Items for the Six Months Ended June 30 | Item | 2025 (RMB Thousand) | 2024 (RMB Thousand) (Restated) | | :--- | :--- | :--- | | Expected Credit Losses on Financial Instruments | 194,512 | 144,978 | | Impairment Losses (Goodwill and Interests in Associates) | 52,071 | 31,723 | | Depreciation (Property, Plant and Equipment, Right-of-Use Assets, Investment Properties) | 162,779 | 169,138 | | Amortization of Intangible Assets | 31,639 | 25,709 | | Cost of Inventories | 410,860 | 367,528 | | Outsourced Staff Costs | 2,736,441 | 2,646,008 | [Income Tax from Continuing Operations](index=82&type=section&id=Income%20Tax%20from%20Continuing%20Operations) For the six months ended June 30, 2025, income tax from continuing operations was RMB 226.9 million, a 23.8% YoY increase, with Chinese subsidiaries generally subject to a 25% corporate income tax rate, while some eligible enterprises enjoy preferential rates of 5% or 15%. Income Tax Summary for the Six Months Ended June 30 | Item | 2025 (RMB Thousand) | 2024 (RMB Thousand) (Restated) | | :--- | :--- | :--- | | Current Tax — PRC Corporate Income Tax | 248,482 | 311,235 | | Deferred Tax | (21,540) | (127,930) | | **Total** | **226,942** | **183,305** | - Chinese subsidiaries are subject to a **25% corporate income tax rate**, with some small low-profit enterprises enjoying a **5% preferential tax rate**, and high-tech enterprises enjoying a **15% preferential tax rate**[347](index=347&type=chunk)[349](index=349&type=chunk)[351](index=351&type=chunk) - Hong Kong registered entities are not subject to Hong Kong profits tax as there was no relevant taxable income during the period[346](index=346&type=chunk)[348](index=348&type=chunk) [Earnings Per Share](index=84&type=section&id=Earnings%20Per%20Share) For the six months ended June 30, 2025, basic earnings per share from continuing operations was RMB 0.195, and diluted earnings per share was also RMB 0.195, with basic EPS calculated based on profit attributable to equity holders and weighted average ordinary shares. - For the six months ended June 30, 2025, basic earnings per share from continuing operations was **RMB 0.195**[352](index=352&type=chunk)[354](index=354&type=chunk) - For the six months ended June 30, 2025, diluted earnings per share was **RMB 0.195**, which is the same as basic earnings per share because the effect of potential dilutive ordinary shares was not anti-dilutive[356](index=356&type=chunk)[357](index=357&type=chunk)[358](index=358&type=chunk)[359](index=359&type=chunk)[360](index=360&type=chunk) Weighted Average Number of Ordinary Shares for the Six Months Ended June 30 | Item | 2025 (Thousand Shares) | 2024 (Thousand Shares) | | :--- | :--- | :--- | | Ordinary Shares Issued at January 1 | 3,160,786 | 3,188,036 | | Effect of Exercise of Share Options | 37 | – | | Effect of Shares Repurchased | (16,449) | (23,739) | | **Weighted Average Number of Ordinary Shares at June 30** | **3,144,374** | **3,164,297** | [Investment Properties](index=86&type=section&id=Investment%20Properties) For the six months ended June 30, 2025, the Group's investment properties increased by RMB 76,136 thousand, primarily comprising office buildings leased out in Hangzhou and Ningbo. - For the six months ended June 30, 2025, investment properties increased by **RMB 76,136 thousand**[361](index=361&type=chunk)[366](index=366&type=chunk) - These properties primarily consist of office buildings leased out by the Group in Hangzhou and Ningbo[361](index=361&type=chunk)[366](index=366&type=chunk) [Property, Plant and Equipment and Right-of-Use Assets](index=86&type=section&id=Property,%20Plant%20and%20Equipment%20and%20Right-of-Use%20Assets) For the six months ended June 30, 2025, the Group acquired property, office equipment and furniture, motor vehicles, leasehold improvements, and construction in progress totaling RMB 78,858 thousand, and recognized additional right-of-use assets of RMB 31,496 thousand from lease agreements. - During the period, the Group acquired property, office equipment and furniture, motor vehicles, leasehold improvements, and construction in progress, with a total cost of **RMB 78,858 thousand**[362](index=362&type=chunk)[367](index=367&type=chunk) - Office equipment, furniture, and motor vehicles with a net book value of **RMB 6,027 thousand** were disposed of, resulting in a loss on disposal of **RMB 3,498 thousand**[363](index=363&type=chunk)[367](index=367&type=chunk) - The Group entered into lease agreements for office spaces, teaching buildings, and retail stores, recognizing additional right-of-use assets of **RMB 31,496 thousand**[364](index=364&type=chunk)[368](index=368&type=chunk) [Goodwill](index=86&type=section&id=Goodwill) For the six months ended June 30, 2025, an impairment loss of RMB 38,424 thousand was recognized for goodwill arising from the acquisition of the Digital Space Department, with impairment testing based on a five-year cash flow projection using specific assumptions for revenue growth, cost of sales percentage, long-term growth rate, and pre-tax discount rate. - For the six months ended June 30, 2025, an impairment loss of **RMB 38,424 thousand** was recognized for goodwill[365](index=365&type=chunk)[368](index=368&type=chunk) - Impairment testing is based on cash flow projections covering a five-year period, using the following key assumptions[365](index=365&type=chunk)[369](index=369&type=chunk) Key Assumptions for Goodwill Impairment Test as of June 30 | Assumption | Value | | :--- | :--- | | Revenue (Annual Growth Rate %) | 16.0% – 12.0% | | Cost of Sales (% of Revenue) | 64.1% – 59.8% | | Long-term Growth Rate | 2.0% | | Pre-tax Discount Rate | 17.3% | [Interest in Associates and Joint Ventures](index=87&type=section&id=Interest%20in%20Associates%20and%20Joint%20Ventures) For the six months ended June 30, 2025, the Group recognized an impairment of RMB 13,647 thousand on interests in associates, and acquired an additional 25% equity interest in Hangzhou Jiancheng Asset Management Co., Ltd. for a cash consideration of RMB 47,328 thousand, increasing its stake from 20% to 45% and reclassifying it as a joint venture. - For the six months ended June 30, 2025, an impairment of **RMB 13,647 thousand** was recognized on interests in associates[371](index=371&type=chunk)[374](index=374&type=chunk) - The Group acquired an additional **25% equity interest** in Hangzhou Jiancheng Asset Management Co., Ltd. for a cash consideration of **RMB 47,328 thousand**, increasing its stake from **20% to 45%**[372](index=372&type=chunk)[375](index=375&type=chunk) - Upon completio