Financial Performance - The company's revenue for the year ended December 31, 2025, was RMB 3,135,419,000, a decrease of 17.0% compared to the previous year[3] - Net profit increased by 13.1% to RMB 949,948,000, with earnings per share at RMB 1.26[3] - The overall sales of the group in 2025 decreased significantly, with total sales amounting to RMB 3,135,419,000, representing a year-on-year decline of 17.0%[12] - Gross profit for the same period was RMB 2,266,207,000, down from RMB 2,831,749,000, reflecting a gross margin decline[59] - The group reported a net exchange gain of approximately RMB 31,164,000 from currency fluctuations, compared to a net loss of RMB 55,440,000 in the previous year[45] - The effective tax rate for the group in 2025 was 25.2%, a decrease from 26.7% in 2024[51] - The group incurred a tax expense of RMB 319,318,000 in 2025, compared to RMB 305,669,000 in 2024, reflecting a slight increase[79] - The pre-tax profit for the year ending December 31, 2025, is estimated at RMB 1,269,266,000, representing a 10.8% increase from RMB 1,145,721,000 in 2024[81] Sales and Market Trends - The gross profit margin declined to 72.3% from 75.0% in the previous year, primarily due to rising raw material costs and the impact of centralized procurement on drug prices[10] - Sales revenue from traditional Chinese medicine formula granules decreased by 14.4% during the year, reflecting the overall market adjustment[5] - The overall pharmaceutical market in China experienced a decline in sales and gross margins, impacting the company's performance in 2025[10] - Injection products saw a total sales decrease of 19.8%, primarily due to significant declines in sales of Qingkailing and Shenmai injections by 37.3% and 26.3%, respectively[13] - The sales of traditional Chinese medicine formula granules decreased by 14.4% to RMB 933,657,000, accounting for 29.8% of total sales[18] - The overall sales of basic drugs listed in the national essential drug list fell by 24.5% to RMB 1,017,406,000, representing 32.4% of the group's total sales[15] - Prescription drugs and OTC drugs accounted for approximately 89.1% and 10.9% of total sales, respectively, with prescription drugs declining by 16.8% and OTC drugs by 19.0%[17] Research and Development - The company is focusing on innovation and efficiency improvements, with over 100 projects in the research and development pipeline for classic formulas and innovative traditional Chinese medicine[7] - The group invested 3.3% of its total sales revenue in R&D during the year, focusing on modern traditional Chinese medicine in areas such as cardiovascular diseases, pediatrics, orthopedics, gynecology, and geriatric diseases[31] - The group is conducting clinical trials for multiple research projects, with the innovative drug "Q-B-Q-F Concentrated Pill" currently in Phase III trials, while "Sailuotong Capsules" and "JC Capsules" have completed Phase III trials and are in the process of applying for production licenses[30] - The company has completed the III phase clinical trials for the self-developed JC capsule for upper respiratory infections, with a production license application submitted and accepted, expected to be obtained by early 2026[23] Strategic Initiatives - The company aims to enhance its core competitiveness through digital transformation and refined management as part of its strategic goals for the 14th Five-Year Plan[7] - The company is actively implementing a digital transformation strategy, integrating AI technology into business operations, and successfully applying it in the centralized procurement agreement signing process[20] - The group is focusing on expanding oral formulations as a key development strategy moving forward[12] - The company has successfully won bids for eight major products in the national centralized procurement alliance, covering key therapeutic areas such as cardiovascular, respiratory, and digestive diseases[5] Dividends and Financial Management - The board declared an interim dividend of RMB 0.43 per share for 2026, with a total dividend related to the 2025 fiscal year amounting to RMB 0.54 per share, representing a payout ratio of 42.9%[11] - The company declared a first interim dividend of RMB 0.43 per share for 2026, totaling RMB 324,822,000, an increase from RMB 271,944,000 in 2024[83] - The company's cash and cash equivalents increased to RMB 7,189,047,000 from RMB 6,140,153,000, indicating improved liquidity[60] - The total employee costs, including directors' remuneration, amounted to RMB 337,885,000 in 2025, a decrease of 13.8% from RMB 391,824,000 in 2024[76] Compliance and Governance - The company has complied with the Corporate Governance Code, except for a deviation from the code provision C.2.1 regarding the separation of roles between the chairman and the CEO[94] - The roles of the chairman and the president are clearly defined, with the same individual, Mr. Li Zhenjiang, serving as both chairman and president, which the board believes is beneficial for executing the company's business strategy[95] - The audit committee has reviewed the audited financial performance of the group for the year ending December 31, 2025[97] - Deloitte Touche Tohmatsu has verified the financial figures in the preliminary announcement against the audited consolidated financial statements approved by the board on March 27, 2026[98]

Financial Performance - In 2025, the company reported a total sales revenue of approximately RMB 3.812 billion, a decrease of 27.6% year-on-year; in HKD, the revenue was about HKD 4.165 billion, down 27.8% year-on-year[3]. - The gross profit margin for 2025 was approximately 41.6%, a decline of 8.8 percentage points compared to the previous year[3]. - Net profit for the year was approximately HKD 471 million, representing a year-on-year decrease of 55.6%[3]. - The company declared a final dividend of HKD 0.03 per share, with a total annual dividend of HKD 0.08 per share, down 54.3% year-on-year[4]. - The company's revenue for the year ended December 31, 2025, was HKD 4,165,465, a decrease of 27.8% compared to HKD 5,773,251 in 2024[23]. - Gross profit for 2025 was HKD 1,731,005, down 40.4% from HKD 2,908,262 in 2024[23]. - Operating profit decreased to HKD 628,912 in 2025, a decline of 53.3% from HKD 1,343,500 in 2024[23]. - The net profit for the year was HKD 483,461, representing a 55.1% decrease from HKD 1,075,608 in 2024[24]. - The basic earnings per share for 2025 was HKD 0.1605, down from HKD 0.3582 in 2024, indicating a significant decline in profitability[24]. - The diluted earnings per share for 2025 is also HKD 0.160, compared to HKD 0.358 in 2024, indicating a similar decline of 55.3%[44]. Sales and Market Performance - The company achieved a total sales volume of 1.536 billion large-volume infusions, a decrease of 24.5% year-on-year, with sales revenue of HKD 2.485 billion, down 33.5%[7]. - Sales volume for oral formulations reached 2.072 billion units, an increase of 15% year-on-year, with domestic sales growing by approximately 9%[9]. - Export sales of active pharmaceutical ingredients amounted to approximately HKD 494 million, a decline of 8.2% year-on-year, with caffeine exports down 24%[10]. - Some therapeutic infusion products saw growth, including levofloxacin sodium chloride injection, which achieved a sales volume of 7.95 million bags, up 35% year-on-year[8]. - The sales of metronidazole reached 282 tons, a year-on-year increase of 58%, and hydroxyethyl starch series sales increased by 77% to 93 tons[11]. - Export sales of infusion products reached 23,955 million HKD, a year-on-year increase of approximately 35%, with a total export volume of 15,836 million bottles (bags)[12]. Product Development and Innovation - The company completed 42 generic names and 52 specifications for market access approvals in 2025, participating in over a thousand bidding activities[6]. - The company’s product portfolio in the national medical insurance catalog has expanded to 201 varieties, with the addition of new products in 2025[6]. - The group successfully obtained 74 product registration certificates in 20 countries, including the Philippines and Nicaragua, with a cumulative total of 513 certificates in nearly 100 countries[12]. - The group reported 110 production approvals, including 86 for formulations and 24 for active pharmaceutical ingredients, maintaining a leading position in the domestic industry[13]. - The group has made significant progress in the development of innovative drugs, with the first-class new drug SYN045 currently in Phase I clinical trials, showing good safety profiles[15]. - The group has built specialized technical platforms for complex formulation drug development, with several products achieving batch production and others in the approval process[16]. - A total of 71 patents were applied for during the year, with 30 patents granted, bringing the cumulative total to 591 applications and 377 granted patents[17]. Financial Position and Liabilities - Non-current assets increased to HKD 7,857,624 thousand in 2025 from HKD 7,542,759 thousand in 2024, representing a growth of 4.2%[25]. - Current liabilities rose significantly to HKD 2,618,563 thousand in 2025, up from HKD 1,820,950 thousand in 2024, marking an increase of 43.8%[26]. - Total assets less current liabilities decreased to HKD 10,194,550 thousand in 2025 from HKD 10,782,730 thousand in 2024, a decline of 5.4%[25]. - The company’s total liabilities decreased to HKD 5,192,450 thousand in 2025 from HKD 5,192,450 thousand in 2024, indicating a stable liability management[32]. - Cash and cash equivalents increased to HKD 1,690,577 thousand in 2025 from HKD 1,257,702 thousand in 2024, a growth of 34.4%[25]. - The company’s equity attributable to owners increased to HKD 7,300,928 thousand in 2025 from HKD 7,220,240 thousand in 2024, reflecting a growth of 1.1%[26]. - Deferred tax liabilities decreased to HKD 12,498 thousand in 2025 from HKD 17,571 thousand in 2024, a reduction of 29.0%[26]. Corporate Governance and Compliance - The company has complied with the corporate governance code provisions applicable for the financial year ending December 31, 2025, except for a deviation noted in the report[81]. - The audit committee has reviewed the financial results for the year ending December 31, 2025, with the external auditor confirming consistency with the audited financial statements[84]. - The company emphasizes the importance of environmental sustainability and integrates ESG considerations into its daily operations[83]. Future Plans and Strategies - The company plans to enhance its product structure and accelerate the launch of high-value specialty products, focusing on caffeine and azithromycin exports[20]. - The group aims to complete the construction of a new sterile freeze-dried powder injection production line by May 2026, supporting new product industrialization[21]. - The company is actively seeking merger and acquisition opportunities in the pharmaceutical industry to strengthen its market position and enhance investment returns[21]. - The company is focusing on expanding its market share in the basic infusion market while increasing efforts to develop community medical institutions[20].

Financial Performance - Revenue for the year ended December 31, 2025, was RMB 5,763,739, representing a 15.0% increase from RMB 5,012,107 in 2024[5] - Gross profit increased by 22.3% to RMB 4,254,555, up from RMB 3,478,530 in the previous year[5] - Net profit for the year rose by 86.0% to RMB 1,656,509, compared to RMB 890,491 in 2024[5] - The total revenue for the year ended December 31, 2025, was RMB 5,763.7 million, compared to RMB 5,012.1 million in 2024[19] - The gross profit for the year ended December 31, 2025, increased by 22.3% to RMB 4,254.6 million, with a gross margin improvement from 69.4% in 2024 to 73.8%[28] - Operating profit for the year ended December 31, 2025, was RMB 1,679.9 million, compared to RMB 914.8 million for the previous year[37] - Adjusted net profit for the year ended December 31, 2025, was RMB 1,756.9 million, compared to RMB 956.7 million for the previous year[38] - Basic earnings per share rose to RMB 3.19 from RMB 1.71, indicating a growth of 86%[52] - The net profit attributable to equity holders for 2025 was RMB 1,535,274,000, compared to RMB 811,530,000 in 2024, indicating a significant increase of 89%[87] User Engagement - Average monthly active users for online games decreased by 20.4% to 11,347, down from 14,247 in 2024[6] - As of December 31, 2025, the average MAU for the TapTap China version app was 45.0 million, a year-on-year increase of 2.1%[15] - The TapTap international version app had an average MAU of 4.3 million, a year-on-year decrease of 14.1%[17] Revenue Segmentation - The revenue from the gaming business increased by 10.5% year-on-year to RMB 3,796.1 million for the year ended December 31, 2025[20] - The revenue from the TapTap platform increased by 24.7% year-on-year to RMB 1,967.7 million for the year ended December 31, 2025[23] - The revenue from online games increased by 8.4% year-on-year to RMB 3,596.4 million, driven by new game launches[20] - The revenue from paid games increased by 15.6% year-on-year to RMB 128.0 million, mainly due to new game releases[20] - The gaming segment generated revenue of RMB 3,724.419 million in 2025, up from RMB 3,427.520 million in 2024, reflecting a year-over-year increase of about 9%[68] - The TapTap platform segment reported revenue of RMB 1,967.672 million in 2025, compared to RMB 1,578.046 million in 2024, marking a growth of approximately 25%[70] Expenses and Costs - Sales and marketing expenses increased by 2.8% year-on-year to RMB 1,435.9 million for the year ended December 31, 2025, primarily due to performance-based compensation increases for sales personnel[29] - Research and development expenses rose by 6.7% year-on-year to RMB 981.4 million, driven by performance-based salary increases for R&D staff and increased outsourcing costs for game production[30] - General and administrative expenses decreased by 20.3% year-on-year to RMB 212.6 million, mainly due to reduced employee compensation and share-based payments for certain management members[31] - The revenue cost for the year ended December 31, 2025, slightly decreased by 1.6% to RMB 1,509.2 million[25] - The cost of revenue for the gaming segment was RMB 1,237.147 million in 2025, while the TapTap platform segment incurred costs of RMB 272.037 million, leading to a total cost of revenue of RMB 1,509.184 million[68] Corporate Governance and Compliance - The company has complied with all applicable provisions of the Corporate Governance Code for the year ending December 31, 2025, except for the separation of the roles of Chairman and CEO, which are currently held by Huang Yimeng[115] - The Audit Committee has reviewed the audited consolidated financial statements for the year ending December 31, 2025, confirming compliance with applicable accounting principles and sufficient disclosures[117] - The company's independent auditor has verified that the financial figures in the announcement are consistent with the audited consolidated financial statements for the year ending December 31, 2025[118] - The company has adopted a standard code for securities trading by its directors, confirming compliance for the year ending December 31, 2025[116] Employee and Workforce - The company has 788 employees engaged in game development, an increase of 64 from the previous year[11] - The company has 1,554 employees as of December 31, 2025, an increase from 1,400 employees in 2024, indicating growth in workforce[109] - Employee benefits expenses for the year ended December 31, 2025, were approximately RMB 1,225.6 million, a 2.5% increase from RMB 1,195.9 million in 2024, attributed to improved business performance and increased headcount[109] Cash and Assets - Cash and cash equivalents increased to RMB 3,689.4 million as of December 31, 2025, from RMB 2,781.2 million as of December 31, 2024[41] - As of December 31, 2025, total assets amounted to RMB 5,219,637,000, an increase from RMB 3,923,201,000 in 2024[54] - The company had no borrowings or unused bank financing as of December 31, 2025[43] - The debt-to-asset ratio improved to 22.5% as of December 31, 2025, down from 30.8% a year earlier[44] Future Outlook and Investments - The company plans to continue investing in R&D for games like Heartopia and Torchlight: Infinite, which have potential for long-term success[7] - There are no plans for significant future investments or acquisitions of capital assets as of December 31, 2025[47] Shareholder Returns - The company approved a total dividend of HKD 196,670,095 (approximately RMB 179,353,293) in June 2025, reflecting a commitment to shareholder returns[103] - The company did not recommend a final dividend for the year ended December 31, 2025, compared to HKD 0.4 per share for the previous year[107] Acquisitions and Investments - The acquisition of the Torchlight game series IP and related intangible assets was completed at the end of 2025[12] - The company completed the acquisition of assets from Runic Games Inc. and Arc Games, Inc. for a total consideration of USD 37,180,000, financed through a loan agreement[45]

Financial Performance - Total revenue increased by 19.6% year-on-year to approximately HKD 2,872 million[4] - Subscription service revenue reached HKD 1,223 million, up 10.9%, accounting for 42.6% of total revenue; value-added service revenue was HKD 1,649 million, up 27.1%, making up 57.4% of total revenue[4] - Gross profit rose by 22.3% year-on-year to HKD 1,286 million, with a gross margin of 44.8%, an increase of approximately 1.0 percentage points from 2024[4] - Net profit for the year was HKD 212 million, a 33.6% increase, with a profit margin of 7.4%, up about 0.8 percentage points from 2024[4] - Adjusted net profit was HKD 232 million, representing a 29% increase compared to the same period in 2024[4] - Adjusted net profit for 2025 was approximately HKD 231.7 million, an increase of about 29% from HKD 179.7 million in 2024[31] - Total revenue for 2025 reached approximately HKD 2,872.4 million, representing a growth of about 19.6% compared to HKD 2,401.3 million in 2024[34] - Gross profit for 2025 was approximately HKD 1,286 million, up by about 22.3% from HKD 1,051 million in 2024, with a gross margin increase from 43.8% to 44.8%[35] - The company reported a net profit of approximately HKD 212 million for 2025, compared to HKD 158 million in 2024, with basic earnings per share increasing to HKD 0.083 from HKD 0.0631[42] Research and Development - Research and development expenses reached HKD 321 million, an increase of 18.4% year-on-year[4] - Research and development expenses for 2025 were approximately HKD 321 million, an increase of about 18.5% from HKD 271 million in 2024, driven by new product development initiatives[38] - The company is collaborating with the University of Florida on AI research, focusing on advancements in AI content rights confirmation and monetization technologies[28] - The company has enhanced its core film gene comparison algorithm, improving identification efficiency and computational resource optimization, particularly in the micro-drama copyright service area[25] Assets and Liabilities - Total assets as of December 31, 2025, were HKD 6,262,715 thousand, compared to HKD 3,916,882 thousand in 2024[3] - The total assets less current liabilities as of December 31, 2025, were HKD 3,547,871,000, compared to HKD 2,892,013,000 in 2024[55] - The company’s total non-current assets increased to HKD 2,961,193,000 in 2025 from HKD 2,104,681,000 in 2024[55] - The company’s trade receivables increased to HKD 1,800,071,000 in 2025, compared to HKD 1,421,752,000 in 2024, reflecting a growth of 26.6%[79] - The impairment loss on trade receivables rose to HKD 46,330,000 in 2025 from HKD 19,540,000 in 2024, indicating a significant increase in credit risk[79] - The expected credit loss rate for trade receivables was 2.57% as of December 31, 2025, compared to 1.37% in 2024, highlighting a deterioration in credit quality[83][84] Market Expansion and Partnerships - The company has established partnerships with multiple domestic short drama platforms, enabling rapid online deployment of nearly 10,000 pieces of content monthly through API connections[15] - The company is focusing on expanding its subscription services and deepening customer service, particularly in the micro-short drama and music sectors[15][16] - The company is actively expanding its market presence in the Guangdong-Hong Kong-Macao Greater Bay Area by participating in regional copyright ecosystem development[21] - The company has identified and is tracking a significant amount of AI video content, with the proportion of AI-related active assets expected to grow from 3% at the beginning of 2025 to over double digits by year-end[18] Acquisitions and Investments - The company completed the acquisition of Pexeso, Inc. for a total consideration of HKD 156 million, with HKD 99 million paid upfront and HKD 57 million payable within one to two years[92] - The identifiable net assets acquired from Pexeso, Inc. had a fair value of HKD 12,810,000, with goodwill generated from the acquisition amounting to HKD 143,282,000[94] - The acquisition and integration of PEX, managing approximately 125 million music asset fingerprints and about 23 billion internet audio fingerprints, will enhance the company's multi-dimensional recognition capabilities[15] Financing and Capital Structure - Interest-bearing loans as of December 31, 2025, were approximately HKD 401 million, a decrease from HKD 790 million in 2024[47] - The company issued zero-coupon convertible bonds totaling HKD 1,600,000,000 on September 29, 2025, with an initial conversion price of HKD 5.87 per share[50] - The company issued convertible bonds totaling HKD 156 million on May 30, 2025, raising a net amount of HKD 151 million, which has been fully utilized by December 31, 2025[103] - The total principal amount of convertible bonds converted into shares is HKD 79,998,600, resulting in the issuance of 42,780,000 shares at an initial conversion price of HKD 1.87 per share[116] Corporate Governance and Compliance - The audit committee, consisting of three independent non-executive directors, has reviewed the group's annual performance for the year ended December 31, 2025, confirming compliance with relevant accounting standards[117] - The company has adopted the standard code as its securities trading guidelines for directors and employees, with all directors confirming compliance for the year ended December 31, 2025[113] - The company emphasizes that forward-looking statements regarding business prospects and financial performance are based on current information and involve risks and uncertainties[123] Shareholder Information - The company did not recommend any dividend distribution for 2025, consistent with 2024[43] - The board did not recommend a final dividend for the year ending December 31, 2025[109] - The company has not made any significant investments or disposals during 2025[98] - The company has not utilized any financial instruments for hedging purposes during the year[100]

Financial Performance - Average tangible equity return rate is 13.3% for 2025, down from 14.6% in 2024[12] - Pre-tax profit decreased to $29.9 billion in 2025, down from $32.3 billion in 2024[15] - Reported pre-tax profit decreased by $2.4 billion to $29.9 billion, primarily due to a net adverse impact of $4.9 billion from notable items[24] - The pre-tax profit for the company was $29.9 billion, a 7% year-on-year decrease, influenced by significant items including $2.1 billion in dilution and impairment losses related to a transportation bank[60][62] - HSBC recorded a reported pre-tax profit of $29.9 billion for 2025, with a return on tangible equity of 13.3%, and 17.2% excluding notable items[49] - The average return on common equity for 2025 was 12.3%, down from 13.6% in 2024[112] - The average tangible equity return rate was 14.9%, up from 14.2% in 2024[167] - The average tangible equity return rate for 2025 was 13.3%, and 17.2% when excluding notable items, surpassing the target of approximately 15%[78] Revenue and Income - Revenue increased by $2.4 billion to $68.3 billion, a growth of 4%, driven mainly by wealth management and wholesale banking businesses[24] - The reported revenue was $68.3 billion, an increase of $2.4 billion, reflecting a growth rate of 4% driven by strong growth in expenses and other income[118] - Fixed-rate revenue for 2025 reached $68,274 million, a 4% increase from $65,854 million in 2024[116] - Total revenue for 2025 was $14.520 billion, up $703 million or 5% from 2024, despite a negative impact of $600 million from strategic trading[190] Operating Expenses - Operating expenses increased to $36.4 billion in 2025, compared to $33 billion in 2024[13] - Operating expenses increased by $3.4 billion to $36.4 billion, a 10% increase, primarily due to notable items and inflationary pressures[24] - Target benchmark operating expenses set at $33.5 billion for 2025, up from $32.5 billion in 2024[14] - The company successfully controlled the target cost growth to approximately 3%, achieving its cost discipline goals[62] - The company plans to save $600 million in costs by 2025 through restructuring and simplification[106] Capital and Dividends - Common equity tier 1 capital ratio remains stable at 14.9% for 2025, unchanged from 2024[17] - The board approved a fourth interim dividend of $0.45 per share, totaling $0.75 per share for 2025[24] - The dividend payout ratio target is maintained at 50% of earnings per share, excluding significant items and related impacts[34] - HSBC plans to distribute $5.2 billion in common stock dividends for 2025, with an additional $7.7 billion expected for the fourth dividend[100] Investment and Growth - New investment assets under management generated $80 billion in 2025, with Asia contributing $39 billion[21] - Cumulative sustainable financing and investment reached $495.6 billion since January 1, 2020, an increase from $393.6 billion in 2024[21] - The company aims to provide and facilitate sustainable financing and investment between $750 billion and $1 trillion by the end of 2030, having already provided $102 billion in 2025, bringing the cumulative total since January 2020 to $495.6 billion[51] - The group aims to achieve an average tangible equity return of approximately 15% over the three years from 2025 to 2027[65] Strategic Initiatives - The company aims to streamline its organizational structure with an annualized impact of $1.2 billion in cost savings[18] - The company is focused on becoming a streamlined, agile financial institution based on its core strengths[23] - The privatization of Hang Seng Bank is expected to generate over $500 million in pre-tax revenue and cost synergies by the end of 2028, with restructuring costs of $600 million reported as significant items[35] - HSBC aims to simplify its organizational structure into four main business areas starting January 1, 2025, to enhance operational efficiency[46] Market and Economic Outlook - The global economic growth in 2025 exceeded expectations, supported by strong AI capital spending and trade growth, despite geopolitical uncertainties[48] - The company expects global economic expansion in 2026, supported by new trade corridors and increased demand for artificial intelligence hardware[53] - In China, economic growth is expected to be maintained, with a focus on enhancing domestic demand and consumption as part of ongoing economic reforms[54] - The company anticipates that strong consumption and export trends will drive significant expansion in several markets, particularly in ASEAN countries[54] Wealth Management - The wealth management business reported a balance of $2.1 trillion as of December 31, 2025, representing a 16% year-over-year growth, with new investment assets of $80 billion, of which $39 billion was recorded in Asia[35] - The international wealth management and premier banking business achieved $14.5 billion in revenue, a 5% increase, with total wealth management assets reaching $2.1 trillion as of December 31, 2025[67] - Wealth management revenue increased by 24% to $9.4 billion, reflecting strong growth in new business and favorable investment returns[126] Credit Losses - Expected credit losses increased by $400 million to $3.9 billion, with provisions related to the Hong Kong commercial real estate sector rising significantly[24] - Expected credit loss provisions are projected to average around 40 basis points of total loans for 2026, with a mid-term plan to maintain this percentage between 30 to 40 basis points[34] - The expected credit loss as a percentage of average customer loans was 0.39% in 2025, up from 0.34% in 2024[112] Digital Innovation - The group is focusing on digital innovation to accelerate customer service, with tokenized deposits supporting new instant payment features across markets including Hong Kong, Singapore, the UK, and Luxembourg[70] - The company plans to launch 30 updates to its mobile banking application in 2026, enhancing digital customer service experience[158] Environmental and Social Governance - The company’s environmental, social, and governance (ESG) strategy focuses on creating long-term value for customers and stakeholders[200]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準 確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生 或因依賴該等內容而引致之任何損失承擔任何責任。 ORIENTAL EXPLORER HOLDINGS LIMITED 東方興業控股有限公 司 （於百慕達註冊成立之有限公司） （股份代號：430） 截至二零二五年十二月三十一日止年度之全年業績 綜合損益表 截至二零二五年十二月三十一日止年度 | | | 二零二五年 | 二零二四年 | | --- | --- | --- | --- | | | 附註 | 千港元 | 千港元 | | 收入 | 5 | 24,332 | 25,383 | | 所提供服務成本 | | (6,391) | (6,003) | | 毛利 | | 17,941 | 19,380 | | 其他收入及收益，淨額 | 5 | 3,577 | 1,208 | | 按公平值列入損益之金融資產之公平值變動，淨額 | | (8) | (18) | | 投資物業之公平值變動，淨額 | | (480,870) | (42,610) | | 經營及行政開 ...

Financial Performance - Total revenue for the year ended December 31, 2025, was RMB 916,131,000, a decrease of 14.3% from RMB 1,069,225,000 in 2024[3] - Gross profit for the same period was RMB 309,806,000, slightly up from RMB 306,710,000, indicating a stable gross margin[3] - Operating profit decreased significantly to RMB 81,429,000 from RMB 163,222,000, reflecting a decline of 50% year-over-year[3] - Net profit for the year was RMB 21,029,000, compared to RMB 10,420,000 in 2024, showing a substantial increase[4] - Revenue from advertising publishing decreased to RMB 749,953,000 in 2025 from RMB 859,458,000 in 2024, a decline of 12.7%[18] - Revenue from the mainland China market was RMB 570,445,000 in 2025, down from RMB 635,214,000 in 2024, reflecting a decrease of 10.2%[19] - The company reported a net profit before tax of RMB 37,201,000 for the year ended December 31, 2025[16] - The company's net profit attributable to shareholders for the year ended December 31, 2025, was RMB 13,301,000, compared to a loss of RMB 51,822,000 in 2024, indicating a significant recovery[23] - Basic earnings per share for 2025 was RMB 0.4, a substantial improvement from a loss of RMB 13.3 per share in 2024[24] - The group's profit increased by 101.8% to RMB 21.0 million compared to RMB 10.4 million in 2024, with a gross margin rising to 33.8% from 28.7% in 2024[34] Assets and Liabilities - Total assets decreased to RMB 1,616,518,000 from RMB 2,053,955,000, a decline of approximately 21.2%[6] - Total liabilities were reduced to RMB 1,347,206,000 from RMB 1,793,321,000, indicating a decrease of about 25%[8] - Cash and cash equivalents decreased to RMB 184,389,000 from RMB 215,334,000, a decline of 14.4%[7] - Non-current assets, excluding financial assets measured at fair value and deferred tax assets, totaled RMB 739,388,000 as of December 31, 2025, down from RMB 1,033,742,000 in 2024[19] - The company's net receivables decreased to RMB 368,786,000 in 2025 from RMB 460,564,000 in 2024, primarily due to an increase in impairment provisions[26] - The total accounts payable increased to RMB 351,442,000 in 2025 from RMB 342,262,000 in 2024, indicating a slight rise in liabilities[30] - The total amount of other receivables decreased to RMB 99,417,000 in 2025 from RMB 149,849,000 in 2024, reflecting improved collection efforts[26] - The company's bank borrowings totaled RMB 271,979,000 in 2025, down from RMB 355,419,000 in 2024, indicating a reduction in leverage[32] Expenses and Costs - The company incurred total administrative expenses of RMB 127,602,000 for the year ended December 31, 2025[16] - The company's financing costs for the year ended December 31, 2025, were RMB 45,918,000, leading to a net financing cost of RMB 44,384,000[16] - Total financing costs for 2025 amounted to RMB 45,918,000, down from RMB 74,667,000 in 2024, reflecting a reduction in interest expenses[5] - Selling and marketing expenses decreased by 28.1% from RMB 113.8 million in 2024 to RMB 81.8 million, consistent with the revenue decline[48] - Administrative expenses decreased by 33.9% from RMB 192.9 million in 2024 to RMB 127.6 million[49] Strategic Initiatives - The company plans to focus on expanding its outdoor advertising media business in mainland China, Hong Kong, Macau, and Southeast Asia[9] - The company has made strategic investments in new technologies and products to enhance its market position[9] - The group is advancing its outdoor online (O&O) media strategy and DOOH+ platform as a core part of its long-term growth plan[42] - A highlight of the year was a multi-month exclusive advertising campaign for a leading beverage brand at bus shelters, showcasing the group's creative capabilities and audience engagement[43] - The group completed the upgrade of all bus shelters in Hong Kong to data-driven digital outdoor advertising (DOOH), enhancing operational efficiency and advertising effectiveness[41] Governance and Compliance - The company plans to propose amendments to its Articles of Association at the upcoming annual general meeting to reflect regulatory requirements and updates[70] - The audit committee and the board have reviewed and approved the audited annual results for the year[71] - The company will publish all financial and related information as required by the listing rules on the respective websites at an appropriate time[73] - The company has complied with all applicable corporate governance codes as per the listing rules, except for deviations in C.2.1 and C.1.5[68] Dividend Policy - The company did not declare any dividends for both 2025 and 2024, maintaining a focus on reinvestment[25] - The company does not recommend the payment of a final dividend for the current year[65] Other Financial Metrics - The company reported a significant increase in deferred tax expenses, which rose to RMB 15,733,000 in 2025 from RMB 69,604,000 in 2024[21] - The net loss provision for accounts receivable increased by RMB 14,663,000 in 2025, compared to RMB 33,706,000 in 2024, highlighting ongoing credit risk management efforts[28] - As of December 31, 2025, the company's cash and cash equivalents totaled RMB 200.3 million, a decrease of RMB 32.2 million from the previous year[57] - The company had total bank borrowings of RMB 272.0 million, with RMB 195.1 million due within one year[58]

Financial Performance - Total revenue for the year ended December 31, 2025, was HKD 287,031,000, a slight increase from HKD 285,848,000 in 2024, representing a growth of 0.4%[2] - Gross profit for the same period was HKD 241,234,000, compared to HKD 238,142,000 in 2024, reflecting a growth of 1.2%[2] - The net loss for the year was HKD 705,826,000, a significant decline from a profit of HKD 283,923,000 in 2024[2] - The total comprehensive loss for the year was HKD 442,114,000, compared to a comprehensive income of HKD 89,579,000 in 2024[4] - Basic and diluted loss per share for the year was HKD (77.14) cents, compared to earnings of HKD 28.13 cents per share in 2024[2] - The adjusted profit/loss before tax for the year ending December 31, 2025, is expected to be a loss of HKD 714,620,000, compared to a profit of HKD 316,514,000 in the previous year[21] - The pre-tax loss for the group in 2025 is approximately HKD 644,984, compared to a profit of HKD 235,177 in 2024, indicating a significant decline[35] Assets and Liabilities - Non-current assets decreased to HKD 10,188,656,000 from HKD 11,153,960,000 in 2024, a decline of 8.7%[5] - Current assets increased to HKD 2,712,098,000 from HKD 2,223,354,000 in 2024, representing a growth of 21.9%[5] - Total liabilities decreased to HKD 2,853,990,000 from HKD 2,879,623,000 in 2024, a reduction of 0.9%[6] - The company's equity attributable to shareholders decreased to HKD 7,634,120,000 from HKD 8,109,960,000 in 2024, a decline of 5.8%[6] - The group's total assets as of December 31, 2025, are estimated to be HKD 12,900,754,000, a decrease from HKD 13,377,314,000 in the previous year[22] - The total liabilities for the year ending December 31, 2025, are projected to be HKD 3,419,853,000, slightly increasing from HKD 3,419,498,000 in the previous year[22] Revenue Streams - The total revenue from external customers for the year ending December 31, 2025, is projected to be HKD 287,031,000, compared to HKD 285,848,000 for the previous year, indicating a slight increase[23] - The group’s revenue from Hong Kong for the year ending December 31, 2025, is expected to be HKD 128,362,000, a decrease from HKD 134,102,000 in the previous year[23] - Revenue from serviced apartment operations and property management services for 2025 is HKD 34,408, an increase from HKD 31,979 in 2024, representing a growth of approximately 8.9%[25] - Fixed rental income from leased properties for 2025 is HKD 196,946, slightly up from HKD 193,517 in 2024, indicating a growth of about 2.5%[25] - The group's investment properties in Hong Kong generated rental income of approximately HKD 72,000,000 in 2025, consistent with 2024 figures[41] - In Shanghai, the average occupancy rate for the group's properties reached about 87%, contributing rental and management fee income of approximately HKD 158,000,000 in 2025, up from HKD 152,000,000 in 2024[42] Investments and Fair Value Changes - The fair value change of financial assets recognized in profit or loss was HKD 401,823,000, up from HKD 176,705,000 in 2024, indicating a growth of 127.5%[2] - The fair value changes of investment properties for the year ending December 31, 2025, are expected to be HKD 1,319,496,000, a significant increase from a loss of HKD 1,089,000 in the previous year[22] - The company reported fair value gains of approximately HKD 402 million from equity investments in 2025, up from HKD 177 million in 2024, due to a significant increase in market value at year-end[52] - Fair value losses from investment properties amounted to approximately HKD 1.319 billion in 2025, compared to HKD 1 million in 2024, reflecting a 9% decrease in fair value to approximately HKD 9.916 billion[53] - The net fair value gain from equity investments was approximately HKD 402,000,000 in 2025, compared to HKD 177,000,000 in 2024[46] Tax and Dividends - The total tax expense for 2025 is a credit of HKD 8,794, compared to an expense of HKD 32,591 in 2024, indicating a substantial change in tax position[33] - The total dividend proposed for 2025 is HKD 41,803, an increase from HKD 33,442 in 2024, representing a growth of approximately 25.5%[34] Market Outlook and Strategy - The group anticipates a challenging leasing market for office and industrial properties in Hong Kong through 2026, with no signs of short-term recovery[62] - The group expects stable occupancy rates and revenue contributions from serviced apartments and villas in mainland China through 2026[62] - The group is focused on maintaining stable income streams from its property investments while exploring new strategies for market expansion and development[41] - The group will continue to manage its business operations and investments prudently to navigate the uncertain market environment[63] Corporate Governance - The board of directors includes executive directors Liu Zhiyong, Liu Zhiqi, and Liang Huisheng, as well as independent non-executive directors Lu Minlin, Lao Jinxiang, Xu Jiahu, and Wu Chengye[72] - The chairman of the company is Liu Zhiyong[73] Miscellaneous - The group has classified its business into three reportable segments: property investment, serviced apartment operations, and securities investment, with no inter-segment sales or transactions during the year[19] - The group has no significant commitments or contingent liabilities as of December 31, 2025[60] - The annual performance announcement is available on the company's website and the Hong Kong Stock Exchange website[71]

Revenue Growth - Product revenue increased by $59.6 million (or 15%) to $457.2 million, driven by strong demand for DINGYAOLE and increased sales of NIUZAILA, despite some supply constraints during the year [4] - Total revenue for 2025 reached $460,156,000, a 15.4% increase from $398,988,000 in 2024 [20] - Net product revenue after rebates and returns for 2025 was $457.182 million, compared to $397.614 million in 2024, reflecting a year-over-year increase of about 15% [79] - The company reported a significant increase in net revenue from the product "Dingyoule," which rose to $22.912 million in 2025 from $3.305 million in 2024, marking a growth of over 594% [80] - The net revenue from the product "Niuzaile" increased to $60.836 million in 2025 from $43.199 million in 2024, representing a growth of approximately 40.9% [80] Financial Performance - Net loss decreased by $81.6 million (or 32%) to $175.5 million, attributed to product revenue growth outpacing net operating expenses and a shift from foreign exchange losses to gains, although offset by reduced interest income [4] - Basic and diluted loss per share was $0.16, a decrease of 38% from $0.26 [4] - Operating loss decreased to $229,434,000 in 2025 from $282,117,000 in 2024, indicating an 18.7% improvement [20] - Net loss for 2025 was $175,537,000, an improvement from a net loss of $257,103,000 in 2024, representing a 31.7% reduction in losses [21] Expenses Management - R&D expenses decreased by $13.6 million (or 6%) to $220.9 million, mainly due to resource optimization and efficiency improvements, partially offset by increased clinical trial costs [4] - Selling, general and administrative expenses decreased by $21.1 million (or 7%) to $277.6 million, primarily due to resource optimization and efficiency improvements [4] - Research and development expenses were $220,904,000, down from $234,504,000 in 2024, a decrease of 5.8% [20] - The total remuneration for the CEO and executive directors in 2025 was $17,650,000, a decrease of 2.3% from $18,068,000 in 2024 [145] Assets and Liabilities - Total assets decreased from $1,185,753,000 in 2024 to $1,172,384,000 in 2025, a decline of approximately 1.1% [19] - Total liabilities rose from $344,855,000 in 2024 to $456,884,000 in 2025, an increase of approximately 32.5% [19] - Shareholders' equity decreased from $840,898,000 in 2024 to $715,500,000 in 2025, a decline of about 15% [19] - Cash and cash equivalents increased significantly from $449,667,000 in 2024 to $679,573,000 in 2025, representing a growth of about 51.1% [19] Cash Flow and Financing - Cash used in operating activities was $150,789,000 in 2025, an improvement from $214,869,000 in 2024 [23] - Financing activities generated a net cash inflow of $72,353,000 in 2025, compared to $349,889,000 in 2024 [23] - The company has secured a non-committed financing letter with Bank of China for up to $100 million, backed by restricted cash of the same amount [99] - The company has established a credit line with Bank of Communications for up to RMB 300 million (approximately $41.1 million), expiring in September 2025 [103] Inventory and Accounts Receivable - Inventory net increased from $39,875,000 in 2024 to $74,745,000 in 2025, reflecting an increase of approximately 87.2% [19] - Accounts receivable increased by $20.9 million to $106.1 million, primarily due to increased product revenue [197] - Accounts payable rose from $100,906,000 in 2024 to $141,608,000 in 2025, an increase of about 40.5% [19] Taxation and Deferred Tax Assets - The company incurred a current tax expense of $451,000 in mainland China for 2025, with a deferred tax benefit of $(3.378) million [89] - The company expects a deferred tax asset net value of $3.4 million as of December 31, 2025, primarily related to inventory write-downs [94] - The company has a deferred tax asset related to capitalized research and experimentation of $49,331 million for 2025, up from $38,215 million in 2024 [93] Strategic Initiatives and Market Position - The company is actively pursuing market expansion and innovative drug development to address unmet medical needs in oncology, immunology, neuroscience, and infectious diseases [25] - The company aims to become a leading global biopharmaceutical company focused on discovering, developing, and commercializing innovative therapies to improve patient health [177] - The company continues to strengthen its business through the addition of key global leadership members, including the appointment of Dr. He as Senior Vice President and Chief Business Officer [170] Collaboration and Licensing Agreements - The company has entered into a licensing agreement with Zenas for the development of products targeting IGF-1R, with an upfront payment of $10 million and potential additional payments up to $117 million [109] - The company has a licensing agreement with Paratek for the exclusive rights to develop and commercialize products containing Omadacycline in the Greater China region, with potential milestone payments of up to $40.5 million based on sales [119] - The company has a collaboration and licensing agreement with Pfizer for Tisotumab Vedotin, with potential milestone payments of up to $258.0 million based on development and sales [125]

Financial Performance - The total revenue for the year ending December 31, 2025, increased to approximately HKD 8,572.2 million, compared to HKD 6,066.0 million for the year ending December 31, 2024, representing a growth of 41.5%[2] - The total gross profit for the year ending December 31, 2025, rose to approximately HKD 486.2 million, up from HKD 353.2 million in the previous year, marking a 37.7% increase[2] - The profit for the year ending December 31, 2025, was approximately HKD 42.2 million, a decrease from HKD 54.0 million for the year ending December 31, 2024, reflecting a decline of 21.5%[2] - The company reported a basic and diluted earnings per share of HKD 0.0784 for the year ending December 31, 2025, down from HKD 0.1074 in the previous year[3] - The total comprehensive income for the year ending December 31, 2025, was HKD 78.2 million, compared to HKD 52.7 million in the previous year, an increase of 48.5%[4] - Adjusted profit before tax for the group was HKD 72,772, down from HKD 80,544 in 2024, indicating a decrease of around 9.8%[13] - The company reported a pre-tax profit of HKD 39,221,000 for 2025, down from HKD 53,715,000 in 2024, indicating a decline of 27%[28] - Net profit decreased by approximately HKD 11.8 million or 21.9% to approximately HKD 42.2 million, with net profit margins of approximately 0.9% and 0.5% for the years ending December 31, 2024, and 2025, respectively[55] Assets and Liabilities - The total assets as of December 31, 2025, amounted to HKD 1,034.8 million, compared to HKD 931.8 million as of December 31, 2024, indicating an increase of 11.1%[6] - The total liabilities increased to HKD 284.0 million as of December 31, 2025, from HKD 255.9 million in the previous year, representing an increase of 11.0%[6] - The total assets of the group as of December 31, 2025, amounted to HKD 5,531,511, an increase from HKD 4,856,182 in 2024, representing a growth of approximately 13.9%[14] - The total liabilities increased to HKD 4,780,742 from HKD 4,180,289, reflecting a rise of about 14.3%[14] - The group recorded a net current asset value of approximately HKD 496.5 million as of December 31, 2025, down from approximately HKD 565.5 million in 2024, with cash and cash equivalents decreasing to approximately HKD 211.6 million from HKD 330.8 million[64] Revenue Segmentation - The construction business segment generated sales of HKD 8,416,655, up from HKD 5,926,563 in the previous year, reflecting a growth of about 42.3%[13] - The environmental business segment reported sales of HKD 155,565, compared to HKD 139,474 in 2024, marking an increase of approximately 11.6%[13] - Revenue from building construction projects rose by approximately HKD 2,283.3 million or 42.1% to approximately HKD 7,697.8 million, driven by new and existing projects[41] - Revenue from RMAA projects increased by approximately HKD 206.9 million or 40.4% to approximately HKD 718.9 million, attributed to new and existing projects[42] - The environmental business revenue increased by approximately HKD 16.0 million or 11.5% to approximately HKD 155.5 million, driven by new projects in wastewater and reclaimed water treatment services[43] Cash Flow and Financing - The company’s cash and cash equivalents decreased to HKD 211.6 million as of December 31, 2025, from HKD 330.8 million in the previous year, a decline of 36.0%[5] - The total bank loans amounted to HKD 631.40 million in 2025, an increase from HKD 534.16 million in 2024[32] - The group had interest-bearing bank borrowings of approximately HKD 631.4 million as of December 31, 2025, compared to HKD 534.2 million in 2024, reflecting an increase in debt levels[65] - The group has provided guarantees to banks amounting to approximately HKD 3,415.0 million for financing granted to subsidiaries, with approximately HKD 1,040.6 million of this financing utilized as of the reporting period[62] Employee and Operational Metrics - As of December 31, 2025, the group had a total of 931 employees, down from 1,015 employees as of December 31, 2024, with total employee costs (excluding directors' remuneration) approximately HKD 494.0 million, compared to HKD 501.5 million in 2024[56] - The average credit period for trade payables is between 30 to 180 days, with a total of HKD 375.79 million due within one year[32] - The group completed 17 projects during the reporting period, with a total original contract value of approximately HKD 6.1 billion[34] - The group has 50 ongoing projects with a total original contract value of approximately HKD 32.6 billion, including 15 new projects awarded during the reporting period worth HKD 5.6 billion[34] Research and Development - Research and development expenses rose to HKD 23,307,000 in 2025, compared to HKD 20,074,000 in 2024, an increase of 11.5%[20] - The total R&D expenditure for enhancing core competitiveness in the construction industry was approximately HKD 23.3 million[37] Corporate Governance and Compliance - The Audit Committee, chaired by an independent non-executive director, is responsible for overseeing the financial statements and internal control systems of the group[73] - The company has adopted the standard code of conduct for directors' securities transactions as per Appendix C3 of the listing rules, confirming compliance during the reporting period[71] - The annual general meeting is scheduled for June 18, 2026, with notifications to be sent to shareholders as per listing rules[75] - The annual performance announcement and the 2025 annual report will be published on the Hong Kong Stock Exchange and the company's website, containing all required information[76]