[Corporate Information](index=2&type=section&id=Corporate%20Information) [Board of Directors](index=3&type=section&id=Board%20of%20Directors) The company's board of directors comprises executive, non-executive, and independent non-executive directors, with audit, remuneration, and nomination committees ensuring sound corporate governance - Board members include Mr. Wu Yushu (Chairman), Ms. Wang Lifang (Executive Director), Mr. Fu Haitao (Non-executive Director), and Ms. Wang Danzhou, Ms. Du Yilin, Mr. Wei Bin (Independent Non-executive Directors)[5](index=5&type=chunk)[6](index=6&type=chunk) - The company has an audit committee, remuneration committee, and nomination committee, with independent non-executive directors holding key positions to strengthen corporate governance[5](index=5&type=chunk)[6](index=6&type=chunk) [Registered Offices and Principal Places of Business](index=4&type=section&id=Registered%20Offices%20and%20Principal%20Places%20of%20Business) The company has its registered office in the Cayman Islands and principal places of business in Guangzhou, China, and Hong Kong, reflecting its cross-regional operations - Cayman Islands registered office is located at 89 Nexus Way, Camana Bay, Grand Cayman KY1-9009[8](index=8&type=chunk) - Principal place of business in China is located at Room 1111, No. 5 Wangjiang 2nd Street, Huangge Town, Nansha District, Guangzhou, Guangdong Province[8](index=8&type=chunk)[9](index=9&type=chunk) - Principal place of business in Hong Kong is located at Unit 732, 7/F, Capital Tower, 135 Hoi Bun Road, Kwun Tong, Kowloon[8](index=8&type=chunk)[9](index=9&type=chunk) [Share Registrars, Legal Advisers, Auditor and Principal Banks](index=4&type=section&id=Share%20Registrars,%20Legal%20Advisers,%20Auditor%20and%20Principal%20Banks) The company appointed Ogier Global (Cayman) Limited as Cayman Islands share registrar, Boardroom Share Registrars (HK) Limited as Hong Kong share registrar, Jingtian & Gongcheng as legal adviser, Ernst & Young as auditor, and Ping An Bank Guangzhou Huangpu Avenue Branch as principal bank - Cayman Islands principal share registrar is Ogier Global (Cayman) Limited[8](index=8&type=chunk)[9](index=9&type=chunk) - Hong Kong share registrar is Boardroom Share Registrars (HK) Limited[9](index=9&type=chunk) - Legal advisers include Jingtian & Gongcheng (Hong Kong Law) and Jingtian & Gongcheng (PRC Law)[10](index=10&type=chunk)[11](index=11&type=chunk) - Auditor is Ernst & Young, and principal bank is Ping An Bank Guangzhou Huangpu Avenue Branch[10](index=10&type=chunk)[11](index=11&type=chunk) [Stock Code and Company Website](index=5&type=section&id=Stock%20Code%20and%20Company%20Website) The company's stock code is 2361, and its official website is ir.sinohealth.cn - Company stock code is **2361**[11](index=11&type=chunk) - Company website is ir.sinohealth.cn[11](index=11&type=chunk) [Core Financial and Operational Data](index=5&type=section&id=Core%20Financial%20and%20Operational%20Data) [Financial Performance](index=6&type=section&id=Financial%20Performance) The company presents key financial metrics including contracted amounts, in-hospital business contracted amounts, enterprise client numbers, revenue, gross profit, and net profit, with contracted amounts showing year-on-year growth Core Financial and Operational Data | Indicator | H1 2025 (RMB '000) | H1 2024 (RMB '000) | | :--- | :--- | :--- | | Contracted amount expected to be delivered this year | 417,500 (estimated) | 376,126 (estimated) | | In-hospital business – contracted amount expected to be delivered this year | 70,700 (estimated) | 49,097 (estimated) | | Number of enterprise clients | 965 | 869 | | Revenue | 147,925 | 159,531 | | Gross profit | 82,102 | 88,788 | | Net profit | 24,511 | 42,348 | - As of the 2025 interim results announcement date, contracted amount expected to be delivered this year is approximately **RMB 417.5 million**, a year-on-year increase of **11.0%**[13](index=13&type=chunk)[25](index=25&type=chunk) - In-hospital business contracted amount expected to be delivered this year is approximately **RMB 70.7 million**, a year-on-year increase of **44.0%**[13](index=13&type=chunk)[25](index=25&type=chunk) [Core Competence](index=6&type=section&id=Core%20Competence) The company's core competence lies in its leading AI technology, strong data processing and analysis capabilities, and rich talent pool in medicine and R&D, laying the foundation for digital transformation in the healthcare industry - Data weight parameter scale reaches **70 billion**, establishing **38** health industry master databases covering pharmaceutical retail, industry regulation, medicine, pharmacy, and life sciences[14](index=14&type=chunk) - Data processing capability significantly improved, with machine automatic cleaning rate exceeding **97%**, accuracy exceeding **99%**, fastest response speed reaching **T+1**, store cleaning data processing time reduced by **75%**, and operation and maintenance costs reduced by **20%**[15](index=15&type=chunk) - Leveraging "Woodpecker" medical large model and "Tiangong No.1" commercial large model, integrating AIGC, machine learning, natural language processing, computer vision, and other technologies, to build a commercializable and rapidly deployable intelligent agent platform[16](index=16&type=chunk) - Sufficient professional talent reserves, with **39%** of employees having medical backgrounds, **18%** with AI and technology backgrounds, solution and product personnel accounting for **45%**, and R&D personnel accounting for **30%**[17](index=17&type=chunk) [Extensive Network of Industry Collaborations](index=6&type=section&id=Extensive%20Network%20of%20Industry%20Collaborations) The company has established an extensive cooperation network in pharmaceutical retail, health management, and patient management, covering numerous pharmacies, hospitals, and physical examination centers, serving over **9.8 million** patient visits - Pharmaceutical retail cooperation network covers over **170,000** pharmacies across **30** provinces/**356** cities, with over **125,000** pharmacies using the SIC system[18](index=18&type=chunk) - Health management cooperation network reaches approximately **230** hospitals and **680** physical examination centers, serving over **9.8 million** patient visits through AI-MDT services[18](index=18&type=chunk)[19](index=19&type=chunk) - Patient management services cover over **300** cooperative hospitals, serving over **300,000** patients, with over **20,000** registered oncology doctors on the iMDT platform, organizing over **1,200** MDT consultation meetings[19](index=19&type=chunk) [All-round Ecological Empowerment System](index=6&type=section&id=All-round%20Ecological%20Empowerment%20System) The company builds a value ecosystem for industry participants by organizing health industry conferences/exhibitions and providing media services, serving as a primary platform for product marketing and traffic monetization - CPEO has been successfully held for **18** sessions, becoming a leading, large-scale, and influential forward-looking industry conference in China's health industry, with **8,000** official attendees and over **60,000** participants[21](index=21&type=chunk) - Industry ecosystem platform reaches nearly **one million** industry professionals[21](index=21&type=chunk)[22](index=22&type=chunk) [Honours and Certifications](index=6&type=section&id=Honours%20and%20Certifications) The company has received multiple honors and certifications in artificial intelligence, including being listed on Guangzhou's AI Innovation Development List and "Woodpecker Doctor Intelligent Agent" being selected as a typical case for Guangzhou's "AI+" initiative - In February 2025, selected for Guangzhou Science and Technology Bureau's "2024 Guangzhou AI Innovation Development List - Most Market Value Enterprise List"[23](index=23&type=chunk) - In March 2025, "Woodpecker Doctor Intelligent Agent" successfully selected as a typical case for Guangzhou's "AI+" initiative in 2025[23](index=23&type=chunk)[24](index=24&type=chunk) - In July 2025, "Woodpecker AI Report Interpretation Intelligent Agent" successfully listed on Guangzhou Data Exchange[24](index=24&type=chunk) [Financial Summary](index=6&type=section&id=Financial%20Summary) [Key Financial Highlights](index=6&type=section&id=Key%20Financial%20Highlights) During the reporting period, total revenue decreased by **7.3%** year-on-year to **RMB 147.9 million**, and net profit decreased by **42.1%** year-on-year to **RMB 24.5 million**, primarily due to business structure adjustments and the transformation of the health management business's profit model. Despite this, R&D expenses increased by **14.4%** year-on-year, both contracted amounts and in-hospital business contracted amounts achieved significant growth, and client numbers also increased by **11.0%** year-on-year Key Financial Data for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 147.9 | 159.5 | -7.3% | | In-hospital business revenue | 25.1 | 23.1 | +8.7% | | Cost of sales | 65.8 | 70.7 | -7.0% | | Gross profit | 82.1 | 88.8 | -7.5% | | Gross profit margin | 55.5% | 55.7% | -0.2 pp | | Net profit | 24.5 | 42.3 | -42.1% | | R&D expenses | 33.0 | 28.9 | +14.4% | | Contracted amount expected to be delivered this year | 417.5 | 376.1 | +11.0% | | In-hospital business contracted amount expected to be delivered this year | 70.7 | 49.1 | +44.0% | | Number of cooperative clients | 965 | 869 | +11.0% | - Total revenue decrease primarily due to the company's strategic adjustment of business structure, focusing on high-potential future businesses, and changing the health management business profit model to post-examination management[25](index=25&type=chunk) - R&D expenses increased by **14.4%**, indicating the company's continued investment in technological innovation[25](index=25&type=chunk) [Management Discussion and Analysis](index=7&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=8&type=section&id=Business%20Review) Facing the challenge of slowing growth in China's pharmaceutical market, the company leverages 18 years of experience and an "AI-driven" strategy to provide one-stop digital intelligence solutions, building a full-scenario intelligent agent platform covering medical, pharmacy, commercial, health management, and R&D, promoting high-quality industry development - China's pharmaceutical market growth continues to decline, with the full-year pharmaceutical terminal market size expected to decrease by **2.9%**, and graded hospitals and pharmacies decreasing by **5.7%** and **0.4%** respectively[27](index=27&type=chunk)[29](index=29&type=chunk) - The company adheres to an "AI-driven" development strategy, relying on data resources, AI technology, and industry ecosystem advantages to provide one-stop digital intelligence solutions[28](index=28&type=chunk)[30](index=30&type=chunk) - Building a full-scenario intelligent agent platform covering medical, pharmacy, commercial, health management, and R&D, creating a business closed-loop of "intelligent decision-making, agile action, and controllable results"[28](index=28&type=chunk)[30](index=30&type=chunk) [Performance Overview](index=9&type=section&id=Performance%20Overview) During the reporting period, the company underwent strategic business structure adjustments, focusing on high-potential businesses and transforming its health management profit model, leading to a short-term decline in total revenue. However, the company maintained growth in market expansion, with both contracted amounts and in-hospital business revenue achieving positive growth, while continuously increasing R&D investment and expanding its ecological cooperation network, accumulating strength for medium-to-long-term value release Performance Overview for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Main business revenue | 147.9 | 159.5 | -7.3% | | Smart Retail Cloud client numbers | 676 | 519 | +30.3% | | Contracted amount expected to be delivered this year | 417.5 | 376.1 | +11.0% | | In-hospital business operating revenue | 25.1 | 23.1 | +8.7% | | Hospital innovative data business revenue | 3.5 | - | - | | Innovative drug patient management and iMDT platform revenue | 21.6 | - | - | | In-hospital business contracted amount expected to be delivered this year | 70.7 | 49.1 | +44.0% | | R&D expenses | 33.0 | 28.9 | +14.4% | | Total number of cooperative clients | 965 | 869 | +11.0% | | Covered pharmaceutical retail enterprises | 2,968 | - | - | | Covered pharmacies | >170,000 | - | - | | Covered hospitals | >530 | - | - | | Covered physical examination institutions | >680 | - | - | | Managed pharmacy staff | >255,000 | - | - | | Managed pharmacy members | >310 million | - | - | - Main business revenue decreased by **7.3%**, primarily due to strategic adjustment of business structure, focusing on high-potential future businesses, and changing the health management business profit model[33](index=33&type=chunk)[35](index=35&type=chunk) - Smart Retail Cloud client numbers increased by **30.3%**, indicating an expansion in client scale[33](index=33&type=chunk)[35](index=35&type=chunk) - R&D expenses increased by **14.4%** year-on-year, mainly for expanding computing power infrastructure and high-level R&D talent team, introducing several AI experts[41](index=41&type=chunk)[43](index=43&type=chunk) - Total number of cooperative clients increased by **11.0%**, cumulatively covering **2,968** pharmaceutical retail enterprises, over **170,000** pharmacies, over **530** hospitals, and over **680** physical examination institutions[42](index=42&type=chunk)[44](index=44&type=chunk) [Operational Analysis of Principal Business](index=12&type=section&id=Operational%20Analysis%20of%20Principal%20Business) The company firmly implements an "AI-driven" strategy, accelerating the construction of a vertical intelligent agent platform for the healthcare industry, and achieving multi-dimensional growth by deepening To B business, expanding To C and To R businesses. Continuous innovation in AI technology and expansion of the ecological network jointly build the company's core competitiveness - The company is driven by a dual engine of Big Data Research Institute + Industry Research Institute, strengthening technological barriers, deepening industry insights, integrating full-chain industry resources, and providing one-stop AI-driven digital intelligence solutions[46](index=46&type=chunk)[47](index=47&type=chunk) - Building a vertical intelligent agent platform for the healthcare industry covering five major scenarios: medical, pharmacy, commercial, health management, and R&D, empowering clients externally and serving as a super assistant for product development and business operations internally[48](index=48&type=chunk) - To B business consolidates out-of-hospital advantages and expands in-hospital innovation; To C business accelerates product innovation, explores diversified value monetization scenarios; To R business focuses on the closed-loop of biomedical R&D[47](index=47&type=chunk) [Adherence to the AI-driven core development strategy](index=12&type=section&id=Adherence%20to%20the%20AI-driven%20core%20development%20strategy) Through its "AI-driven" strategy, the company has built an intelligent agent platform covering five major scenarios: medical, pharmacy, commercial, health management, and R&D, with intelligent agents successfully launched in multiple scenarios for commercialization - Medical intelligent agents assist doctors in improving diagnostic efficiency and accuracy, providing real-time decision support and enhancing research efficiency[49](index=49&type=chunk) - Pharmacy intelligent agents provide personalized professional services to consumers, optimize inventory and operational efficiency for chain pharmacies, and contribute to sales growth[49](index=49&type=chunk) - Commercial intelligent agents integrate internal and external data with policy dynamics to generate precise strategies, helping pharmaceutical companies respond quickly to market changes[49](index=49&type=chunk) - Health management intelligent agents provide full life-cycle health management services, improving the medical experience; R&D intelligent agents accelerate new drug R&D cycles and reduce costs[53](index=53&type=chunk) - "Woodpecker AI Report Interpretation Intelligent Agent" has been listed on Guangzhou Data Exchange, and "Woodpecker Doctor Intelligent Agent" was selected as a typical case for Guangzhou's "AI+" initiative[51](index=51&type=chunk)[52](index=52&type=chunk) [Consolidating established businesses while developing new businesses for growth](index=15&type=section&id=Consolidating%20established%20businesses%20while%20developing%20new%20businesses%20for%20growth) The company analyzes its development strategies for To B, To C, and To R businesses from client and application scenario dimensions. To B business consolidates out-of-hospital advantages and expands in-hospital innovation, To C business explores personalized health management needs, and To R business extends B-side capabilities to build a full life-cycle empowerment platform for innovative drugs and medical devices - To B business focuses on the digital intelligence needs of medical product suppliers and pharmaceutical retail enterprises, creating digital intelligence decision-making, digital intelligence retail, and digital intelligence medical solutions[55](index=55&type=chunk)[57](index=57&type=chunk) - To C business, based on B-side ecosystem advantages, deeply explores personalized "health management + severe disease management" needs, providing "light" (health management) and "heavy" (severe disease management) digital intelligence services[78](index=78&type=chunk)[79](index=79&type=chunk) - To R business extends the advantages of AI large models to the biomedical R&D end, building a full life-cycle digital intelligence empowerment platform for innovative drugs and medical devices[88](index=88&type=chunk)[89](index=89&type=chunk) [Analysis by client types](index=15&type=section&id=Analysis%20by%20client%20types) The company has clear business layouts across three major client dimensions: To B, To C, and To R. To B business provides digital intelligence decision-making, retail, and medical solutions; To C business offers light and heavy health management services; To R business focuses on full life-cycle empowerment for innovative drugs and medical device R&D - To B Digital Intelligence Decision-making Solutions: Provides "3 major data × 3 major services + Digital Insight DaaS system" to empower scenarios such as pharmaceutical product R&D, production, circulation, promotion, and terminal retail[60](index=60&type=chunk)[61](index=61&type=chunk) - To B Digital Intelligence Retail Solutions: Centered on the SIC system, provides one-stop digital intelligence upgrades for pharmaceutical retail enterprises and integrated digital intelligence marketing solutions for medical product suppliers[67](index=67&type=chunk)[68](index=68&type=chunk)[69](index=69&type=chunk)[71](index=71&type=chunk) - To B Digital Intelligence Medical Solutions: Provides full-disease course management for innovative drugs and multidisciplinary consultation services for critically ill patients, with over **20,000** registered oncology doctors on the iMDT platform[75](index=75&type=chunk)[76](index=76&type=chunk)[77](index=77&type=chunk) - To C "Light" Health Management Solutions: Based on Woodpecker AI-MDT, provides report interpretation, health follow-up, and other services for physical examination users, with cumulative interpretations exceeding **9.8 million** cases[81](index=81&type=chunk)[82](index=82&type=chunk)[83](index=83&type=chunk)[84](index=84&type=chunk) - To C "Heavy" Severe Disease Management Solutions: Built the Woodpecker Oncology Multidisciplinary Consultation Platform, providing online multidisciplinary, personalized, and precise consultation for oncology patients[85](index=85&type=chunk)[86](index=86&type=chunk) - To R Innovative Drug and Medical Device Full Life-cycle Empowerment Platform: Utilizes AI large models and industry insights to empower innovative drug and medical device enterprises in drug R&D, scientific research collaboration, clinical data processing, and commercialization[88](index=88&type=chunk)[89](index=89&type=chunk) [Analysis by application scenarios](index=25&type=section&id=Analysis%20by%20application%20scenarios) The company's four smart cloud products (Smart Decision Cloud, Smart Retail Cloud, Smart Health Management Cloud, Smart Medical Cloud) perform differently across their application scenarios. Smart Decision Cloud and Smart Medical Cloud saw revenue growth, Smart Retail Cloud significantly increased client numbers, while Smart Health Management Cloud's revenue declined due to a shift in its profit model Smart Cloud Product Revenue for H1 2025 | Product | H1 2025 Revenue (RMB million) | H1 2024 Revenue (RMB million) | YoY Change (%) | Number of Clients/Repurchase Rate | | :--- | :--- | :--- | :--- | :--- | | Smart Decision Cloud | 71.7 | 68.2 | +5.1% | 360 enterprise clients, 98.3% repurchase rate | | Smart Retail Cloud | 48.5 | 56.4 | -14.0% | 676 enterprise clients, +30.3% YoY, 81.9% repurchase rate | | Smart Health Management Cloud | 10.6 | 16.9 | -37.5% | - | | Smart Medical Cloud | 17.2 | 18.0 | -4.4% | 96.0% repurchase rate | - Smart Decision Cloud revenue increased by **5.1%** year-on-year, with core DaaS product client numbers continuously rising, and revenue increasing by **12.8%** year-on-year[91](index=91&type=chunk)[93](index=93&type=chunk) - Smart Retail Cloud client numbers increased by **30.3%** year-on-year, reaching **676** enterprise clients, but revenue decreased due to product structure adjustments and pricing system optimization[92](index=92&type=chunk)[94](index=94&type=chunk) - Smart Health Management Cloud revenue decreased by **37.5%** year-on-year, primarily due to the company changing its profit model to post-examination management[96](index=96&type=chunk)[98](index=98&type=chunk) - Smart Medical Cloud revenue was approximately **RMB 17.2 million**, with the innovative drug patient management business model maturing, and enterprise client repurchase rate at **96.0%**[97](index=97&type=chunk)[99](index=99&type=chunk) [AI renewal of core competitiveness, continuously fortifying a robust moat](index=27&type=section&id=AI%20renewal%20of%20core%20competitiveness,%20continuously%20fortifying%20a%20robust%20moat) The company continuously iterates its self-developed large models through a "AI foundation, ecological empowerment, and cooperation network" trinity of core competencies, building a full-scenario intelligent agent platform, and precisely empowering the development of the health industry through its industry research institute, ecological empowerment system, and extensive cooperation network - The company has built a "AI foundation, ecological empowerment, and cooperation network" trinity of core competencies[100](index=100&type=chunk)[101](index=101&type=chunk) - Leveraging "Woodpecker" medical large model and "Tiangong No.1" commercial large model, building a multi-modal large model matrix including data governance platform and intelligent agent development platform, driving product upgrades to full-scenario intelligent agents[102](index=102&type=chunk)[103](index=103&type=chunk) [Leveraging the Woodpecker Medical Large Model and Tiangong No.1 Commercial Large Model](index=28&type=section&id=Leveraging%20the%20Woodpecker%20Medical%20Large%20Model%20and%20Tiangong%20No.1%20Commercial%20Large%20Model) Based on years of accumulated data assets, the company integrates open-source large models and various AI technologies to build a powerful large model matrix, forming a complete data chain from "resource-standard-processing-value," and achieving rich application scenarios across "medical, pharmaceutical, and patient" domains, driving product evolution towards intelligent agents and rapid deployment - Strong data foundation, with a total weight parameter scale of **70 billion**, covering millions of public data, tens of millions of desensitized data, and millions of labeled data[104](index=104&type=chunk)[105](index=105&type=chunk) - Data processing capability greatly improved, with machine automatic cleaning rate exceeding **97%**, accuracy exceeding **99%**, fastest response speed T+1, store cleaning data processing time reduced by **75%**, and operation and maintenance costs reduced by **20%**[104](index=104&type=chunk)[105](index=105&type=chunk) - Rich application scenarios, covering "medical, pharmaceutical, and patient" full range, such as pharmaceutical enterprise decision-making, retail pharmacies, physical examinations, medical record governance, medical record quality control, and C-end health assistants[105](index=105&type=chunk) - AI-driven product evolution into intelligent agents, building a commercializable, rapidly deployable, and domain-specific medical vertical intelligent agent platform, with intelligent agents already launched in pharmacy, commercial, and health management scenarios[106](index=106&type=chunk)[107](index=107&type=chunk)[109](index=109&type=chunk)[111](index=111&type=chunk) [All-round ecosystem continuously and accurately empowering the development of the healthcare industry](index=32&type=section&id=All-round%20ecosystem%20continuously%20and%20accurately%20empowering%20the%20development%20of%20the%20healthcare%20industry) The Sinohealth Industry Research Institute, as the "ecosystem brain" for industry insights, outputs forward-looking research results and builds a full-chain, multi-level ecological empowerment system through industry events like CPEO and Xiding Conference, providing comprehensive support for the health industry, enhancing brand influence, and promoting high-quality industry development - Sinohealth Industry Research Institute, as a leading health industry research think tank in China, outputs multiple in-depth industry reports, guiding the direction of industry research[113](index=113&type=chunk)[114](index=114&type=chunk) - Ecological empowerment system provides solutions in strategic planning, research services, resource connection, market expansion, brand building, industry activities, operational empowerment, and capital operation[117](index=117&type=chunk) - CPEO has been successfully held for **18** sessions, with over **8,000** attendees and over **60,000** participants; Xiding Conference has been successfully held for **10** sessions, with over **8,000** representatives and over **30,000** participants[117](index=117&type=chunk)[118](index=118&type=chunk) - Industry ecosystem platform reaches nearly **one million** professionals, including pharmaceutical retail experts, pharmaceutical and medical device manufacturers' experts, pharmacists, doctors, medical experts, and industry investors, through diversified media services[118](index=118&type=chunk)[119](index=119&type=chunk) [The industrial partnering network with extensive and comprehensive coverage](index=36&type=section&id=The%20industrial%20partnering%20network%20with%20extensive%20and%20comprehensive%20coverage) The company has established an extensive cooperation network covering "medical, pharmaceutical, and patient" domains, including partnerships with **965** enterprise clients, over **170,000** pharmaceutical retail pharmacies, approximately **230** hospitals and **680** physical examination centers, and over **300** hospitals and **20,000** oncology doctors, laying a solid foundation for data acquisition, product innovation, and traffic monetization - Enterprise client cooperation network: Has established cooperative relationships with over **965** enterprise clients, a year-on-year increase of approximately **11.0%**[121](index=121&type=chunk)[122](index=122&type=chunk) - Pharmaceutical retail pharmacy cooperation network: Cumulatively covers **2,968** pharmaceutical retail enterprises and over **170,000** pharmacies, of which over **125,000** pharmacies use the SIC system[124](index=124&type=chunk) - Health management cooperation network: Through Woodpecker AI-MDT health management solutions, cumulatively reaches approximately **230** hospitals and **680** physical examination centers, serving over **9.8 million** patient visits[124](index=124&type=chunk) - Medical cooperation network: Cooperates with over **300** hospitals, serving over **300,000** patients; the iMDT platform has over **20,000** registered oncology doctors[124](index=124&type=chunk) [Financial Review](index=38&type=section&id=Financial%20Review) During the reporting period, the company's revenue and net profit both declined, primarily due to business strategic adjustments, transformation of the health management profit model, reduced government subsidies, and fluctuations in interest and exchange rates. Despite this, the company continued to increase R&D investment, optimize its business structure, and enhance credit risk management. Liquidity is sufficient, with no short-term or long-term bank borrowings, and a debt-to-asset ratio of **21.1%** Comparison of Key Financial Data for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 147.9 | 159.5 | -7.3% | | Cost of sales | 65.8 | 70.7 | -7.0% | | Gross profit | 82.1 | 88.8 | -7.5% | | Gross profit margin | 55.5% | 55.7% | -0.2 pp | | Other income and gains | 13.1 | 23.5 | -44.0% | | Selling and distribution expenses | 17.6 | 17.2 | +2.2% | | Administrative expenses | 14.2 | 17.0 | -16.0% | | R&D costs | 33.0 | 28.9 | +14.4% | | Profit before tax | 26.2 | 42.5 | -38.5% | | Income tax expense | 1.6 | 0.2 | +700.0% | | Profit for the period | 24.5 | 42.3 | -42.1% | | Cash and cash equivalents (end of period) | 51.4 | 63.7 | -19.3% | | Debt-to-asset ratio | 21.1% | 14.4% (Dec 31, 2024) | +6.7 pp | | Staff costs | 72.8 | 75.4 | -3.4% | | Total number of employees | 756 | 778 | -2.8% | - Revenue decline primarily due to strategic business structure adjustments and the transformation of the health management business profit model[126](index=126&type=chunk)[129](index=129&type=chunk) - Other income and gains decreased by **44.0%**, mainly affected by interest rate cuts in USD and RMB, exchange losses due to exchange rate fluctuations, and reduced government subsidies[132](index=132&type=chunk)[133](index=133&type=chunk) - R&D costs increased by **14.4%**, mainly for R&D investment in AI+data, AI+medical, and integrated intelligent agent creation platforms[139](index=139&type=chunk)[142](index=142&type=chunk) - Profit before tax decreased by **38.5%**, comprehensively affected by factors such as lower gross profit, increased R&D costs, reduced government subsidies, decreased interest income and exchange gains, and lower impairment losses on financial assets[140](index=140&type=chunk)[143](index=143&type=chunk) - As of June 30, 2025, the company had no short-term or long-term bank borrowings, and its debt-to-asset ratio was **21.1%**[148](index=148&type=chunk)[149](index=149&type=chunk)[153](index=153&type=chunk)[154](index=154&type=chunk) - Capital expenditure was approximately **RMB 3.9 million**, an increase of over **100%** year-on-year, mainly for acquiring computing power servers to support the AI strategic layout[158](index=158&type=chunk)[162](index=162&type=chunk) - Total number of employees was **756**, of which approximately **39%** had medical backgrounds and approximately **18%** had AI and technology backgrounds[167](index=167&type=chunk)[169](index=169&type=chunk)[172](index=172&type=chunk) [Corporate Governance and Other Information](index=44&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Corporate Governance Code](index=45&type=section&id=Corporate%20Governance%20Code) The company is committed to maintaining good corporate governance standards and has adopted the principles and provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules. Although the roles of Chairman and CEO are held by the same person, the Board believes this contributes to consistency in management and strategic planning - The company has adopted the principles and provisions of the Corporate Governance Code set out in Part 2 of Appendix C1 to the Listing Rules[176](index=176&type=chunk) - The roles of Chairman and Chief Executive Officer are held by Mr. Wu Yushu, which the Board believes helps ensure consistency in management and strategic planning[177](index=177&type=chunk)[179](index=179&type=chunk) [Compliance with Model Code for Securities Transactions by Directors of Listed Issuers](index=46&type=section&id=Compliance%20with%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors%20of%20Listed%20Issuers) The company has adopted the Model Code set out in Appendix C3 of the Listing Rules as the code of conduct for directors' securities transactions and confirms that all directors and relevant employees have complied with the code during the reporting period - The company has adopted the Model Code set out in Appendix C3 to the Listing Rules as the code of conduct for directors' securities transactions[182](index=182&type=chunk) - All directors and relevant employees have confirmed compliance with the Model Code throughout the reporting period[183](index=183&type=chunk)[185](index=185&type=chunk) [Changes in Information of Directors and Chief Executives](index=46&type=section&id=Changes%20in%20Information%20of%20Directors%20and%20Chief%20Executives) During the reporting period, independent director Ms. Wang Danzhou was appointed as an independent director of Guangdong Insai Brand Marketing Group Co., Ltd. Additionally, the remuneration of executive directors Mr. Wu Yushu and Ms. Wang Lifang was reduced due to group strategic adjustments - Ms. Wang Danzhou was appointed as an independent director of Guangdong Insai Brand Marketing Group Co., Ltd. on **August 18, 2025**[184](index=184&type=chunk)[186](index=186&type=chunk) - Effective **July 1, 2025**, the remuneration for executive directors Mr. Wu Yushu and Ms. Wang Lifang in the Group was reduced to **RMB 70,000** and **RMB 59,000** per month, respectively, to align with strategic adjustments in international market business expansion and division of labor[184](index=184&type=chunk)[186](index=186&type=chunk) [Directors' and Chief Executives' Interests and Short Positions in Shares, Underlying Shares and Debentures](index=47&type=section&id=Directors'%20and%20Chief%20Executives'%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures) As of June 30, 2025, Mr. Wu Yushu and Ms. Wang Lifang, as spouses, are deemed to jointly own **59.54%** of the company's share interests, primarily held through controlled corporations Directors' and Chief Executives' Long Positions in Shares (as of June 30, 2025) | Name of Director/Chief Executive | Capacity/Nature of Interest | Number of Shares | Total | Approximate % of Interest in the Company | | :--- | :--- | :--- | :--- | :--- | | Mr. Wu Yushu | Interest in controlled corporation | 248,737,500 | 268,987,500 | 59.54% | | | Spouse's interest | 20,250,000 | | | | Ms. Wang Lifang | Interest in controlled corporation | 87,750,000 | 268,987,500 | 59.54% | | | Spouse's interest | 181,237,500 | | | - Mr. Wu Yushu and Ms. Wang Lifang are spouses and are therefore deemed to have an interest in each other's beneficially owned shares[196](index=196&type=chunk) - Mr. Wu Yushu wholly owns Wellmark Link Limited, and Ms. Wang Lifang wholly owns WLF Investment Holdings Limited, holding shares through these entities[196](index=196&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) As of June 30, 2025, Wellmark Link Limited, WLF Investment Holdings Limited, Rikan Industry Investment Limited Partnership, Montesy Capital Holding Ltd, and their associated parties are the company's substantial shareholders, holding significant proportions of share interests Substantial Shareholders' Long Positions in Shares (as of June 30, 2025) | Name/Company Name | Capacity/Nature of Interest | Number of Shares | Total | Approximate % of Interest in the Company | | :--- | :--- | :--- | :--- | :--- | | Wellmark Link Limited | Beneficial owner | 181,237,500 | 248,737,500 | 55.06% | | | Interest in controlled corporation | 67,500,000 | | | | WLF Investment Holdings Limited | Beneficial owner | 20,250,000 | 87,750,000 | 19.42% | | | Interest in controlled corporation | 67,500,000 | | | | Rikan Industry Investment Limited Partnership | Beneficial owner | 67,500,000 | 67,500,000 | 14.94% | | Montesy Capital Holding Ltd | Beneficial owner | 68,512,500 | 68,512,500 | 15.17% | | Ms. Wu Meirong | Spouse's interest | 68,512,500 | 68,512,500 | 15.17% | | Mr. Li Hanxiong | Interest in controlled corporation | 68,512,500 | 68,512,500 | 15.17% | | Futu Trust Limited | Trustee | 44,090,500 | 44,090,500 | 9.76% | - Mr. Wu Yushu and Ms. Wang Lifang are spouses, and hold shares through Wellmark Link Limited and WLF Investment Holdings Limited; Wellmark Link Limited is also the general partner of Rikan Industry Investment Limited Partnership[204](index=204&type=chunk) - Montesy Capital Holding Ltd is owned **70%** by Mr. Li Hanxiong and **30%** by Ms. Wu Meirong, who are spouses and are therefore deemed to jointly own the share interests held by the company[205](index=205&type=chunk) [Share Option Scheme](index=51&type=section&id=Share%20Option%20Scheme) The company adopted a share option scheme on April 27, 2022, to incentivize and reward eligible persons. As of June 30, 2025, the remaining term of the scheme is approximately **6.5 years**, with no share options granted, exercised, cancelled, or lapsed during the reporting period - The share option scheme was adopted on **April 27, 2022**, to incentivize or reward eligible persons who have contributed to the Group[206](index=206&type=chunk)[209](index=209&type=chunk) - Under the scheme, the maximum number of shares that may be issued shall not exceed **10%** of the total issued shares on the listing date (i.e., **45,000,000** shares), and the total number of share options granted to a single eligible participant shall not exceed **1%** of the total issued shares[211](index=211&type=chunk)[212](index=212&type=chunk)[216](index=216&type=chunk)[217](index=217&type=chunk) - The subscription price for share options shall not be less than the highest of the closing price on the Stock Exchange on the date of grant, the average closing price for the preceding five business days, and the nominal value of the shares[213](index=213&type=chunk)[217](index=217&type=chunk) - As of **June 30, 2025**, the remaining term of the share option scheme is approximately **6.5 years**, with no share options granted, exercised, cancelled, or lapsed during the reporting period[214](index=214&type=chunk)[215](index=215&type=chunk)[218](index=218&type=chunk)[219](index=219&type=chunk) [Share Award Scheme](index=53&type=section&id=Share%20Award%20Scheme) The company adopted a share award scheme on December 5, 2022, to recognize and retain outstanding talent. As of June 30, 2025, the trustee has purchased a total of **44,090,500** shares in the market, but no share awards were granted, exercised, cancelled, or lapsed during the reporting period - The share award scheme was adopted on **December 5, 2022**, to recognize and retain eligible participants who have contributed to the Group[220](index=220&type=chunk)[224](index=224&type=chunk) - The total number of awarded shares shall not exceed **10%** of the total issued shares on the adoption date (i.e., **45,177,000** shares), and the maximum number of awards in any **12-month** period shall not exceed **1%** of the issued share capital[222](index=222&type=chunk)[223](index=223&type=chunk)[225](index=225&type=chunk) - As of **June 30, 2025**, the trustee, Futu Trust Limited, has purchased a total of **44,090,500** shares in the market, representing approximately **9.76%** of the total issued shares[228](index=228&type=chunk)[229](index=229&type=chunk)[231](index=231&type=chunk)[232](index=232&type=chunk) - No share awards were granted, exercised, cancelled, or lapsed during the reporting period[229](index=229&type=chunk)[232](index=232&type=chunk) [Purchase, Sale or Redemption of Listed Securities of the Company](index=55&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20Listed%20Securities%20of%20the%20Company) As of June 30, 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities, nor did they hold any treasury shares - As of **June 30, 2025**, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[234](index=234&type=chunk)[238](index=238&type=chunk) - As of **June 30, 2025**, the company held no treasury shares[234](index=234&type=chunk)[238](index=238&type=chunk) [Interim Dividend](index=55&type=section&id=Interim%20Dividend) The Board resolved not to declare any interim dividend for the six months ended June 30, 2025 - The Board resolved not to declare any interim dividend for the six months ended **June 30, 2025** (nil for the corresponding period in 2024)[235](index=235&type=chunk)[239](index=239&type=chunk) [Audit Committee](index=55&type=section&id=Audit%20Committee) The Audit Committee, composed of three independent non-executive directors, has reviewed the unaudited interim results for the six months ended June 30, 2025, confirming compliance with applicable accounting principles and disclosure requirements - The Audit Committee comprises three independent non-executive directors: Ms. Wang Danzhou, Ms. Du Yilin, and Mr. Wei Bin (Chairman)[236](index=236&type=chunk)[240](index=240&type=chunk) - The Audit Committee has reviewed the unaudited interim results for the six months ended **June 30, 2025**, and confirmed compliance with applicable accounting principles, standards, and requirements, and that adequate disclosures have been made[237](index=237&type=chunk)[240](index=240&type=chunk) [Use of Proceeds from the Global Offering](index=56&type=section&id=Use%20of%20Proceeds%20from%20the%20Global%20Offering) The company obtained net proceeds of approximately **HKD 339.6 million** from the global offering and used them as described in the prospectus, primarily for upgrading SaaS products and R&D technology and data warehouses, with no significant changes or delays in use during the reporting period - The company obtained net proceeds of approximately **HKD 339.6 million** from the global offering[242](index=242&type=chunk)[243](index=243&type=chunk) Use of Proceeds from Global Offering (as of June 30, 2025) | Planned Use | Approximate % of Net Proceeds (%) | Actual Net Proceeds Allocated (HKD million) | Funds Utilized as of Dec 31, 2024 (HKD million) | Net Funds Utilized During Reporting Period (HKD million) | Unutilized Balance as of June 30, 2025 (HKD million) | Expected Time of Utilization of Balance | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Upgrading and enhancing SaaS products | 50.8% | 172.5 | 63.4 | 6.8 | 102.3 | On or before Dec 31, 2025 | | R&D of technology and data warehouse | 49.2% | 167.1 | 46.5 | 23.2 | 97.4 | On or before Dec 31, 2025 | | **Total** | **100%** | **339.6** | **109.9** | **30.0** | **199.7** | | - During the reporting period, the net proceeds were used in accordance with the purposes set out in the prospectus, and there were no significant changes or delays in their use[245](index=245&type=chunk) [Unaudited Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=56&type=section&id=Unaudited%20Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) [Consolidated Profit or Loss and Other Comprehensive Income](index=56&type=section&id=Consolidated%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's revenue was **RMB 147.9 million**, a year-on-year decrease of **7.3%**. Gross profit was **RMB 82.1 million**, and net profit was **RMB 24.5 million**, a year-on-year decrease of **42.1%**. R&D costs significantly increased, while other income and gains decreased Summary of Consolidated Statement of Profit or Loss and Other Comprehensive Income for H1 2025 | Indicator | H1 2025 (RMB '000) | H1 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue | 147,925 | 159,531 | | Cost of sales | (65,823) | (70,743) | | Gross profit | 82,102 | 88,788 | | Other income and gains | 13,145 | 23,454 | | Selling and distribution expenses | (17,564) | (17,184) | | Administrative expenses | (14,243) | (16,963) | | R&D costs | (33,030) | (28,881) | | Net impairment loss on financial assets | (1,016) | (5,725) | | Other expenses | (2,999) | (616) | | Finance costs | (240) | (329) | | Profit before tax | 26,155 | 42,544 | | Income tax expense | (1,644) | (196) | | Profit for the period | 24,511 | 42,348 | | Profit attributable to owners of the parent | 24,744 | 41,675 | | Profit attributable to non-controlling interests | (233) | 673 | | Basic and diluted earnings per share (RMB) | 0.06 | 0.10 | - Revenue decreased by **7.3%** year-on-year, from **RMB 159,531 thousand** to **RMB 147,925 thousand**[246](index=246&type=chunk) - Profit for the period decreased by **42.1%** year-on-year, from **RMB 42,348 thousand** to **RMB 24,511 thousand**[246](index=246&type=chunk) - R&D costs increased by **14.4%** year-on-year, from **RMB 28,881 thousand** to **RMB 33,030 thousand**[246](index=246&type=chunk) [Unaudited Interim Condensed Consolidated Statement of Financial Position](index=57&type=section&id=Unaudited%20Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) [Consolidated Financial Position](index=57&type=section&id=Consolidated%20Financial%20Position) As of June 30, 2025, the company's total assets less current liabilities were **RMB 689.9 million**, a decrease from the end of 2024. Net current assets were **RMB 642.5 million**, and total equity was **RMB 681.9 million**. Time deposits and cash and cash equivalents were major current assets, while other payables and accruals significantly increased Summary of Consolidated Statement of Financial Position as of June 30, 2025 | Indicator | June 30, 2025 (RMB '000) | Dec 31, 2024 (RMB '000) | | :--- | :--- | :--- | | **Non-current assets** | | | | Property, plant and equipment | 6,967 | 4,943 | | Right-of-use assets | 8,547 | 10,882 | | Other intangible assets | 1,874 | 1,956 | | Time deposits | 10,434 | 105,723 | | Goodwill | 11,551 | 11,551 | | Deferred tax assets | 8,036 | 7,742 | | **Total non-current assets** | **47,409** | **142,797** | | **Current assets** | | | | Inventories | 1,760 | 1,085 | | Trade and notes receivables | 92,981 | 94,500 | | Prepayments, other receivables and other assets | 13,444 | 11,159 | | Contract assets | 558 | 1,523 | | Financial assets at fair value through profit or loss | 39,921 | 47,934 | | Amounts due from related parties | 142 | 177 | | Time deposits | 578,062 | 448,006 | | Cash and cash equivalents | 51,424 | 63,715 | | **Total current assets** | **778,292** | **668,099** | | **Current liabilities** | | | | Trade payables | 15,827 | 16,618 | | Other payables and accruals | 111,488 | 63,713 | | Lease liabilities | 4,063 | 4,678 | | Amounts due to related parties | 72 | 82 | | Tax payable | 4,361 | 7,254 | | **Total current liabilities** | **135,811** | **92,345** | | **Net current assets** | **642,481** | **575,754** | | **Total assets less current liabilities** | **689,890** | **718,551** | | **Non-current liabilities** | | | | Lease liabilities | 5,371 | 7,102 | | Deferred tax liabilities | 2,648 | 2,642 | | **Total non-current liabilities** | **8,019** | **9,744** | | **Net assets** | **681,871** | **708,807** | | **Total equity** | **681,871** | **708,807** | - Total non-current assets decreased from **RMB 142,797 thousand** at the end of 2024 to **RMB 47,409 thousand**, mainly due to a significant reduction in the non-current portion of time deposits[248](index=248&type=chunk) - Total current assets increased from **RMB 668,099 thousand** at the end of 2024 to **RMB 778,292 thousand**, mainly due to an increase in current time deposits[248](index=248&type=chunk) - Total current liabilities increased from **RMB 92,345 thousand** at the end of 2024 to **RMB 135,811 thousand**, primarily due to a significant increase in other payables and accruals (including dividends payable)[248](index=248&type=chunk) [Unaudited Interim Condensed Consolidated Statement of Changes in Equity](index=59&type=section&id=Unaudited%20Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) [Consolidated Statement of Changes in Equity](index=59&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, the company's total equity decreased from **RMB 708.8 million** at the beginning of the period to **RMB 681.9 million**, primarily due to the combined effect of profit for the period, share repurchases, and declared dividends Summary of Consolidated Statement of Changes in Equity for H1 2025 | Indicator | Jan 1, 2025 (RMB '000) | Total Comprehensive Income for the Period (RMB '000) | Shares Repurchased (RMB '000) | Dividends Declared (RMB '000) | June 30, 2025 (RMB '000) | | :--- | :--- | :--- | :--- | :--- | :--- | | Share capital | 30,384 | – | – | – | 30,384 | | Treasury shares | (207,535) | – | (1,447) | – | (208,982) | | Share premium | 477,339 | – | – | – | 477,339 | | Capital reserve | 14,028 | – | – | – | 14,028 | | Statutory reserve | 45,317 | – | – | – | 45,317 | | Retained profits | 351,170 | 24,744 | – | (50,000) | 325,914 | | **Total attributable to owners of the parent** | **710,703** | **24,744** | **(1,447)** | **(50,000)** | **684,000** | | Non-controlling interests | (1,896) | (233) | – | – | (2,129) | | **Total equity** | **708,807** | **24,511** | **(1,447)** | **(50,000)** | **681,871** | - Profit for the period was **RMB 24,511 thousand**, of which profit attributable to owners of the parent was **RMB 24,744 thousand**[252](index=252&type=chunk) - Share repurchases led to an increase in treasury shares of **RMB 1,447 thousand**[252](index=252&type=chunk) - Declared dividends of **RMB 50,000 thousand** resulted in a decrease in retained profits[252](index=252&type=chunk) [Unaudited Interim Condensed Consolidated Statement of Cash Flows](index=61&type=section&id=Unaudited%20Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) [Consolidated Cash Flows](index=61&type=section&id=Consolidated%20Cash%20Flows) For the six months ended June 30, 2025, the company's net cash flow from operating activities was **RMB 11.7 million**, net cash flow used in investing activities was **RMB 21.1 million**, and net cash flow used in financing activities was **RMB 2.6 million**, resulting in a net decrease of **RMB 12.1 million** in cash and cash equivalents Summary of Consolidated Statement of Cash Flows for H1 2025 | Cash Flow Category | H1 2025 (RMB '000) | H1 2024 (RMB '000) | | :--- | :--- | :--- | | Net cash flow from operating activities | 11,666 | 19,561 | | Net cash flow used in investing activities | (21,134) | (121,663) | | Net cash flow used in financing activities | (2,586) | 1,524 | | Net decrease in cash and cash equivalents | (12,054) | (100,578) | | Cash and cash equivalents at beginning of period | 63,715 | 123,931 | | Net effect of foreign exchange rate changes | (237) | 411 | | Cash and cash equivalents at end of period | 51,424 | 23,764 | - Net cash flow from operating activities decreased by approximately **40.4%** year-on-year, from **RMB 19,561 thousand** to **RMB 11,666 thousand**[256](index=256&type=chunk) - Net cash flow used in investing activities significantly decreased, from **RMB 121,663 thousand** to **RMB 21,134 thousand**, mainly due to reduced net outflow from purchases of time deposits and financial assets[257](index=257&type=chunk) - Financing activities shifted from a net inflow in the prior period to a net outflow, primarily due to lease payments and repayment of share repurchases in the prior period[259](index=259&type=chunk) [Notes to the Unaudited Interim Condensed Consolidated Financial Information](index=64&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Condensed%20Consolidated%20Financial%20Information) [1. Corporate Information](index=65&type=section&id=1.%20Corporate%20Information) The company was incorporated in the Cayman Islands on March 4, 2019, as an investment holding company, with its subsidiaries primarily providing data insight solutions, data-driven publishing and events, and SaaS products. The company's shares were listed on the Main Board of the Hong Kong Stock Exchange on July 12, 2022 - The company was incorporated in the Cayman Islands on **March 4, 2019**, as an investment holding company[261](index=261&type=chunk)[264](index=264&type=chunk) - Subsidiaries are primarily engaged in providing data insight solutions, data-driven publishing and events, and SaaS products[262](index=262&type=chunk)[264](index=264&type=chunk) - The company's shares were listed on the Main Board of the Hong Kong Stock Exchange on **July 12, 2022**[262](index=262&type=chunk)[265](index=265&type=chunk) [2. Basis of Preparation](index=65&type=section&id=2.%20Basis%20of%20Preparation) The interim condensed consolidated financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2024 - The interim condensed consolidated financial information is prepared in accordance with Hong Kong Accounting Standard **34** "Interim Financial Reporting"[263](index=263&type=chunk)[266](index=266&type=chunk) - This information does not include all disclosures required for annual financial statements and should be read in conjunction with the 2024 annual consolidated financial statements[263](index=263&type=chunk)[266](index=266&type=chunk) [3. Changes in Accounting Policies](index=66&type=section&id=3.%20Changes%20in%20Accounting%20Policies) The accounting policies adopted for the preparation of the interim financial information are consistent with the 2024 annual consolidated financial statements, except for the initial adoption of the revised Hong Kong Accounting Standard 21 "Lack of Exchangeability." As the company's transaction and functional currencies are both exchangeable, this revision has no significant impact on the interim financial information - Accounting policies are consistent with the 2024 annual consolidated financial statements, with the initial adoption of the revised Hong Kong Accounting Standard **21** "Lack of Exchangeability"[267](index=267&type=chunk)[268](index=268&type=chunk) - This revision specifies how to assess currency exchangeability and estimate spot exchange rates, but it has no impact on the interim financial information as the company's transaction currencies are all exchangeable[269](index=269&type=chunk)[270](index=270&type=chunk) [4. Operating Segment Information](index=67&type=section&id=4.%20Operating%20Segment%20Information) For management purposes, the company does not segment its business units by service and has only one reportable operating segment. Management monitors the performance of the entire operating segment to make decisions on resource allocation and performance assessment - The company does not segment its business units by service and has only **one** reportable operating segment[271](index=271&type=chunk)[272](index=272&type=chunk) - Management comprehensively monitors the operating results of the entire operating segment to make decisions on resource allocation and performance assessment[271](index=271&type=chunk)[272](index=272&type=chunk) [5. Revenue, Other Income and Gains](index=67&type=section&id=5.%20Revenue,%20Other%20Income%20and%20Gains) For the six months ended June 30, 2025, the company's revenue from contracts with customers was **RMB 147.9 million**, a year-on-year decrease of **7.3%**. Data insight solutions remained the primary revenue source, but Smart Health Management Cloud revenue significantly declined due to a shift in its profit model. Other income and gains decreased by **44.0%** year-on-year, mainly affected by reduced interest income, government subsidies, and exchange losses Analysis of Revenue, Other Income and Gains for H1 2025 | Category | H1 2025 (RMB '000) | H1 2024 (RMB '000) | | :--- | :--- | :--- | | **Revenue from contracts with customers** | **147,925** | **159,531** | | By product type: | | | | Data insight solutions | 84,743 | 84,012 | | Data-driven publishing and events | 32,730 | 38,812 | | SaaS products | 30,452 | 36,707 | | By application scenario: | | | | Smart Decision Cloud | 71,708 | 68,233 | | Smart Retail Cloud | 48,456 | 56,437 | | Smart Medical Cloud | 17,207 | 17,967 | | Smart Health Management Cloud | 10,554 | 16,894 | | By geographical market: | | | | Mainland China | 146,892 | 159,003 | | Overseas | 1,033 | 528 | | By timing of revenue recognition: | | | | Services transferred at a point in time | 75,949 | 79,935 | | Services transferred over time | 71,976 | 79,596 | | **Total other income and gains** | **13,145** | **23,454** | | Bank interest income | 11,840 | 13,450 | | Government grants | 680 | 7,578 | | Investment income from financial assets at fair value through profit or loss | 616 | 119 | | Net exchange gains | – | 2,291 | | Gain on lease modification | – | 11 | - Revenue from contracts with customers decreased by **7.3%** year-on-year, mainly affected by a decrease in SaaS product and data-driven publishing and events revenue[274](index=274&type=chunk)[280](index=280&type=chunk) - Smart Health Management Cloud revenue decreased by **37.5%** year-on-year, primarily due to the company changing its profit model to post-examination management[280](index=280&type=chunk) - Total other income and gains decreased by **44.0%** year-on-year, mainly due to a significant reduction in government subsidies and the absence of exchange gains compared to the prior period[288](index=288&type=chunk)[289](index=289&type=chunk) [6. Profit Before Tax](index=71&type=section&id=6.%20Profit%20Before%20Tax) For the six months ended June 30, 2025, the company's profit before tax was **RMB 26.2 million**, a year-on-year decrease of **38.5%**. This was primarily due to the combined effect of lower gross profit, increased R&D costs, reduced other income and gains, and exchange losses Profit Before Tax Adjustment Items for H1 2025 | Adjustment Item | H1 2025 (RMB '000) | H1 2024 (RMB '000) | | :--- | :--- | :--- | | Cost of services provided | 65,823 | 70,743 | | Depreciation of property, plant and equipment | 1,551 | 1,277 | | Depreciation of right-of-use assets | 2,335 | 2,326 | | Amortisation of other intangible assets | 390 | 364 | | R&D costs | 33,030 | 28,881 | | Bank interest income | (11,840) | (13,450) | | Government grants | (680) | (7,578) | | Investment income from financial assets at fair value through profit or loss | (616) | (119) | | Fair value loss on financial assets at fair value through profit or loss | 1,251 | 575 | | Net exchange loss/(gain) | 1,741 | (2,291) | | Net impairment of trade receivables | 1,016 | 5,725 | - Profit before tax decreased by **38.5%** from **RMB 42,544 thousand** in H1 2024 to **RMB 26,155 thousand** in H1 2025[246](index=246&type=chunk)[292](index=292&type=chunk) - R&D costs increased by **RMB 4,149 thousand**, bank interest income decreased by **RMB 1,610 thousand**, government subsidies decreased by **RMB 6,898 thousand**, and exchange shifted from a gain to a loss of **RMB 4,032 thousand**[292](index=292&type=chunk) [7. Income Tax](index=72&type=section&id=7.%20Income%20Tax) For the six months ended June 30, 2025, the company's income tax expense was **RMB 1.6 million**, a significant year-on-year increase. This was mainly due to some subsidiaries turning profitable in the prior period and achieving stable profitability in the current period, leading to a higher effective tax rate year-on-year Composition of Income Tax Expense for H1 2025 | Category | H1 2025 (RMB '000) | H1 2024 (RMB '000) | | :--- | :--- | :--- | | Current – Mainland China tax deducted for the period | 1,933 | 254 | | Deferred tax | (289) | (58) | | **Total tax deducted for the period** | **1,644** | **196** | - Income tax expense increased from **RMB 0.2 million** in H1 2024 to **RMB 1.6 million** in H1 2025[246](index=246&type=chunk)[300](index=300&type=chunk) - The main reason is that some subsidiaries turned profitable in the prior period and have achieved stable profitability in the current period, leading to a higher effective tax rate year-on-year[141](index=141&type=chunk)[144](index=144&type=chunk) - Guangzhou Sinohealth Digital Technology Co., Ltd., as a high-tech enterprise, enjoys a preferential corporate income tax rate of **15%**; some small and micro enterprises enjoy a preferential tax rate of **5%**[295](index=295&type=chunk)[296](index=296&type=chunk)[297](index=297&type=chunk)[298](index=298&type=chunk) [8. Dividends](index=73&type=section&id=8.%20Dividends) The company approved a final dividend of **RMB 50.0 million** for the year ended December 31, 2024, on March 28, 2025. The Board resolved not to declare an interim dividend for the six months ended June 30, 2025 - On **March 28, 2025**, shareholders approved a final dividend of **HKD 0.12** per ordinary share for the year ended **December 31, 2024**, totaling approximately **RMB 50,000,000**[301](index=301&type=chunk)[302](index=302&type=chunk) - The Board did not declare an interim dividend for the six months ended **June 30, 2025** (2024 corresponding period: nil)[302](index=302&type=chunk) [9. Earnings Per Share Attributable to Ordinary Equity Holders of the Parent](index=74&type=section&id=9.%20Earnings%20Per%20Share%20Attributable%20to%20Ordinary%20Equity%20Holders%20of%20the%20Parent) For the six months ended June 30, 2025, basic and diluted earnings per share attributable to ordinary equity holders of the parent was **RMB 0.06**, a decrease from **RMB 0.10** in the prior period. There were no potential dilutive ordinary shares during the period EPS Calculation Data for H1 2025 | Indicator | H1 2025 (RMB '000/share) | H1 2024 (RMB '000/share) | | :--- | :--- | :--- | | Profit attributable to ordinary equity holders of the parent | 24,744 | 41,675 | | Weighted average number of ordinary shares outstanding | 407,727,793 | 417,249,077 | | Basic and diluted earnings per share (RMB) | 0.06 | 0.10 | - Basic and diluted earnings per share decreased from **RMB 0.10** in H1 2024 to **RMB 0.06** in H1 2025[246](index=246&type=chunk)[306](index=306&type=chunk) - There were no potential dilutive ordinary shares outstanding for the Group during the period[304](index=304&type=chunk)[305](index=305&type=chunk) [10. Trade and Notes Receivables](index=75&type=section&id=10.%20Trade%20and%20Notes%20Receivables) As of June 30, 2025, net trade and notes receivables were **RMB 93.0 million**, a slight decrease from the end of 2024. The company maintains strict control over receivables and regularly reviews overdue balances. Provision for impairment losses increased Trade and Notes Receivables (as of June 30, 2025) | Indicator | June 30, 2025 (RMB '000) | Dec 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade receivables | 122,904 | 123,476 | | Notes receivables | 3,878 | 3,887 | | Impairment | (33,801) | (32,863) | | **Total** | **92,981** | **94,500** | Ageing Analysis of Trade Receivables (as of June 30, 2025) | Ageing | June 30, 2025 (RMB '000) | Dec 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within 6 months | 65,110 | 71,307 | | 6 to 12 months | 15,331 | 10,026 | | 1 to 2 years | 7,047 | 7,173 | | 2 to 3 years | 1,615 | 2,107 | | **Total** | **89,103** | **90,613** | Changes in Provision for Impairment Losses on Trade Receivables | Change | June 30, 2025 (RMB '000) | Dec 31, 2024 (RMB '000) | | :--- | :--- | :--- | | At begi

（於開曼群島註冊成立之有限公司） 股份代號：833 目錄 | 中期簡明綜合損益表 | 2 | | --- | --- | | 中期簡明綜合全面收益表 | 3 | | 中期簡明綜合財務狀況表 | 4 | | 中期簡明綜合權益變動表 | 6 | | 中期簡明綜合現金流量表 | 8 | | 中期簡明綜合財務報表附註 | 10 | | 中期股息 | 38 | | 暫停辦理股份過戶登記 | 38 | | 管理層討論及分析 | 39 | | 購股權計劃 | 48 | | 董事及主要行政人員權益 | 49 | | 主要股東之權益 | 51 | | 企業管治 | 53 | | 補充資料 | 55 | | 公司資料 | 56 | 中期簡明綜合損益表 截至二零二五年六月三十日止六個月 | | | 截至六月三十日止六個月 | | | --- | --- | --- | --- | | | 附註 | 二零二五年 | 二零二四年 | | | | 千港元 | 千港元 | | | | （未經審核） | （未經審核） | | 收益 | 5 | 613,594 | 527,492 | | 銷售成本 | | (491,729) | (428,4 ...

CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE"STOCK EXCHANGE") GEM has been positioned as a market designed to accommodate small & mid-sized companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration. Given that the companies listed on GEM are generally small and ...

Mulsanne Group Holding Limited 慕尚集團控股有限公司 (Incorporated in the Cayman Islands with limited liability) ( 於開曼群島註冊成立的有限公司 ) Stock Code : 1817 股份代號 : 1817 INTERIM REPORT 2025 中期報告 Mulsanne Group Holding Limited 慕尚集團控股有限公司 INTERIM REPORT 2025 中期報告 Contents 目錄 | 2 | Corporate Introduction | | --- | --- | | | 公司介紹 | Corporate Information 公司資料 3 Management Discussion and Analysis 管理層討論與分析 5 Other Information 其他資料 16 Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income 26 中期簡明綜合損 ...

Financial Performance - The company reported a revenue of RMB 1.2 billion for the first half of 2025, representing a 15% increase compared to the same period last year[8]. - For the six months ended June 30, 2025, the company reported total revenue of RMB 638.78 million, a decrease of 9.1% year-on-year[14]. - Revenue for the six months ended June 30, 2025, was RMB 638,778,000, a decrease of 9.06% compared to RMB 702,360,000 for the same period in 2024[90][93]. - The gross profit for the same period was RMB 525.22 million, with a gross margin of 82.2%, compared to 77.0% in the previous year[14][15]. - Gross profit for the same period was RMB 525,219,000, down from RMB 540,560,000, reflecting a gross margin of approximately 82.2%[80]. - Net profit attributable to shareholders was RMB 90.17 million, down 14.4% from RMB 105.35 million in the prior year[14][15]. - Net profit for the six months was RMB 90,174,000, down 14.4% from RMB 105,348,000 in the same period last year[80]. - Basic and diluted earnings per share decreased to RMB 0.37 from RMB 0.53, representing a decline of 30.2%[80]. - Profit before tax for the period was RMB 104,263,000, a decrease of 19.7% from RMB 129,833,000 in 2024[80]. - The company did not recommend an interim dividend for the reporting period[77]. User Growth and Market Expansion - User data showed a growth of 25% in active users, reaching 5 million by June 30, 2025[8]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by the end of 2026[8]. - The company is focusing on stabilizing existing markets and cultivating new markets through differentiated commercial policies to achieve steady revenue growth[16]. Research and Development - Research and development expenses increased by 30% to RMB 150 million, focusing on advanced biopharmaceutical technologies[8]. - R&D costs increased from RMB 37.3 million for the six months ended June 30, 2024, to RMB 49.6 million for the six months ended June 30, 2025, due to increased investments in ongoing R&D projects[40]. - The product pipeline includes multiple innovative drugs, biosimilars, and biopharmaceutical combination products in the fields of metabolism, orthopedics, oncology, and hematology[17]. - The company has submitted the NDA for JY29-2 (Glycemic Control) on March 24, 2024, and expects NMPA approval in the second half of 2025[18]. - JY29-2 (Glycemic Control) has completed Phase I clinical trials, allowing JY29-2 (Glycemic Control) to directly enter Phase III clinical trials, with enrollment completed by December 19, 2024[18]. - The company has initiated a phase IV clinical project for bone-guided materials, with patient enrollment currently underway[25]. - The company is actively conducting research on the combination strategies of GLP-1 and insulin drugs, sharing innovative pathways and project progress at international conferences[21]. Strategic Initiatives - The company provided a forward guidance of 20% revenue growth for the next fiscal year, projecting revenues to reach RMB 1.44 billion[8]. - New product launches included two innovative drugs expected to enter the market by Q4 2025, with projected sales of RMB 300 million in the first year[8]. - A new strategic partnership was formed with a leading healthcare provider to co-develop telemedicine solutions, expected to launch in early 2026[8]. - The company plans to invest RMB 200 million in digital transformation initiatives to enhance operational efficiency[8]. - The company completed an acquisition of a local biotech firm for RMB 500 million, enhancing its product pipeline[8]. Financial Position and Cash Flow - As of June 30, 2025, cash and cash equivalents amounted to RMB 217.6 million, down from RMB 537.6 million as of December 31, 2024[44]. - The debt-to-asset ratio as of June 30, 2025, was 21.7%, compared to 21.1% as of December 31, 2024[44]. - Cash flow from operating activities for the six months ended June 30, 2025, was a net inflow of RMB 12,518 thousand, compared to an outflow of RMB 12,537 thousand in 2024[84]. - The net cash used in investing activities for the six months ended June 30, 2025, was RMB 346,143 thousand, significantly higher than RMB 32,723 thousand in 2024[85]. - Trade receivables increased to RMB 649,056,000 as of June 30, 2025, from RMB 594,344,000 at the end of 2024[105]. Shareholder Information - Major shareholders include Zhongmei Huadong with 21.63% of non-listed shares and 11.58% of H-shares, and Hu Kaijun with similar holdings[55]. - The total number of non-listed shares issued as of June 30, 2025, is 136,302,015, while H-shares total 109,096,785[58]. - The largest single shareholder, Li Bangliang, has 20.79% of non-listed shares and 5.96% of H-shares[56]. - The company has not disclosed any other individuals with significant shareholdings exceeding 5% as of the reporting date[61]. Corporate Governance - The company has adopted the corporate governance code and has complied with its provisions, except for the separation of the roles of Chairman and CEO[71]. - The board will continue to review and monitor the company's operations to maintain high standards of corporate governance[72].

中期報告 INTERIM REPORT 2025 INTERI M REPO R T 2025 中期報告 目錄 執行董事 王國輝先生 （董事長、首席執行官） 張坤女士 韋家威先生 （副總經理） 非執行董事 丁魁先生 陳少雄先生 陳剛先生 獨立非執行董事 郭少牧先生 馮向前先生 龔平先生 | 公司資料 | 2 | | --- | --- | | 財務摘要 | 4 | | 管理層討論與分析 | 5 | | 企業管治及其他資料 | 23 | | 獨立審閱報告 | 32 | | 中期簡明綜合損益及其他全面收益表 | 33 | | 中期簡明綜合財務狀況表 | 34 | | 中期簡明綜合權益變動表 | 36 | | 中期簡明綜合現金流量表 | 37 | | 中期簡明綜合財務資料附註 | 39 | | 釋義 | 50 | 2 上海心瑋醫療科技股份有限公司 公司資料 董事會 審計委員會 龔平先生 （主席） 馮向前先生 丁魁先生 薪酬委員會 郭少牧先生 （主席） 龔平先生 王國輝先生 提名委員會 馮向前先生 （主席） 郭少牧先生 張坤女士 （於2025年3月27日任職） 王國輝先生 （於2025年3月27日不再為成員） 戰略委 ...

[Company Information](index=3&type=section&id=Company%20Information) This section provides an overview of the company's governance structure and key contact details [Board of Directors and Committees](index=3&type=section&id=Board%20of%20Directors%20and%20Committees) The company's board comprises executive and independent non-executive directors, supported by audit, remuneration, nomination, and corporate governance committees - Executive Directors include **Mr. Yan Jianya** (Chairman and CEO), **Ms. Ye Juan**, **Ms. Fang Juan**, **Ms. Zhang Huijuan**, and **Ms. Yan Yubo**[4](index=4&type=chunk) - Independent Non-Executive Directors are **Mr. Huang Jin**, **Mr. Shan Wenhua**, and **Ms. Huang Siying**[4](index=4&type=chunk) - **Ms. Huang Siying** chairs the Audit Committee, **Mr. Shan Wenhua** chairs the Remuneration Committee, and **Mr. Yan Jianya** chairs both the Nomination and Corporate Governance Committees[4](index=4&type=chunk) [Key Contact Information](index=3&type=section&id=Key%20Contact%20Information) The company discloses essential contact information, including its reporting accountants, legal advisors, official website, stock code, and principal bankers - Reporting accountants and independent auditors are **Ernst & Young**[4](index=4&type=chunk) - The company's website is **www.xajuzi.com**, and its stock code is **2367**[4](index=4&type=chunk) - Principal bankers include **China Merchants Bank**, **Shanghai Pudong Development Bank**, and **Chang'an Bank**[5](index=5&type=chunk) [Financial Highlights](index=5&type=section&id=Financial%20Highlights) This section presents a summary of the company's financial performance, assets, and liabilities [Performance Overview](index=5&type=section&id=Performance%20Overview) For the six months ended June 30, 2025, the company achieved robust performance with revenue increasing by 22.5% to RMB 3.11 billion and profit for the period growing by 20.6% to RMB 1.18 billion For the Six Months Ended June 30 - Performance Overview | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 3,112,662 | 2,540,432 | 22.5 | | Gross Profit | 2,542,345 | 2,093,240 | 21.5 | | Profit Before Tax | 1,444,148 | 1,155,190 | 25.0 | | Profit for the Period | 1,182,444 | 980,550 | 20.6 | | Profit for the Period Attributable to Owners of the Parent | 1,182,083 | 983,164 | 20.2 | | Profit for the Period Attributable to Non-controlling Interests | 361 | (2,614) | -113.8 | [Assets and Liabilities Overview](index=5&type=section&id=Assets%20and%20Liabilities%20Overview) As of June 30, 2025, total assets increased by 40.4% to RMB 11.29 billion, total liabilities rose by 128.4% to RMB 2.10 billion, and total equity grew by 29.1% to RMB 9.19 billion As of June 30, 2025 - Assets and Liabilities Overview | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 11,286,255 | 8,037,958 | 40.4 | | Total Liabilities | 2,097,407 | 918,136 | 128.4 | | Total Equity | 9,188,848 | 7,119,822 | 29.1 | | Non-current Assets | 1,398,527 | 1,636,001 | -14.5 | | Current Assets | 9,887,728 | 6,401,957 | 54.4 | | Current Liabilities | 2,030,033 | 835,995 | 142.8 | | Net Current Assets | 7,857,695 | 5,565,962 | 41.2 | | Non-current Liabilities | 67,374 | 82,141 | -18.0 | | Total Equity | 9,188,848 | 7,119,822 | 29.1 | [Management Discussion and Analysis](index=6&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a comprehensive review of the company's business performance, strategic initiatives, and future outlook [Business Review](index=6&type=section&id=Business%20Review) In the first half of 2025, the company achieved steady growth despite external challenges, with revenue and net profit increasing by 22.5% and 20.6% respectively, driven by R&D investment, product innovation, and refined channel operations - During the reporting period, the company's revenue reached **RMB 3.11 billion**, a year-on-year increase of **22.5%**; net profit reached **RMB 1.18 billion**, a year-on-year increase of **20.6%**[9](index=9&type=chunk) - R&D expenditure was **RMB 41 million**, accounting for **1.3% of revenue**, with over **140 ongoing R&D projects** and **186 authorized and pending patents**[10](index=10&type=chunk) - Rebiome brand revenue was **RMB 2.54 billion**, a year-on-year increase of **22.7%**; Collagene brand revenue was **RMB 500 million**, a year-on-year increase of **26.9%**[14](index=14&type=chunk)[15](index=15&type=chunk) - Direct sales channel revenue was **RMB 2.33 billion**, accounting for **74.7%**, an increase of **2.3 percentage points** year-on-year; distribution channel revenue was **RMB 790 million**, accounting for **25.3%**[21](index=21&type=chunk) [R&D Innovation and Technological Breakthroughs](index=6&type=section&id=R%26D%20Innovation%20and%20Technological%20Breakthroughs) The company continuously increases R&D investment, expands the application scope of recombinant collagen, and participates in setting industry standards, solidifying its leading position in synthetic biology - R&D expenditure was **RMB 41 million**, accounting for **1.3% of revenue**, with over **140 ongoing R&D projects**[10](index=10&type=chunk) - Obtained important patent authorizations such as "Recombinant Human Type XVII Collagen and its Application for Hair Growth and Care" and "Type I Recombinant Collagen, its Metal Chelates, and Whitening Cosmetics"[10](index=10&type=chunk) - Participated in drafting the PRC pharmaceutical industry standard "Recombinant Collagen Dressing" and was awarded the "National Advanced Collective in Light Industry" honor[11](index=11&type=chunk) [Product Iteration and Brand Development](index=7&type=section&id=Product%20Iteration%20and%20Brand%20Development) The Rebiome and Collagene brands successfully launched multiple star products through continuous innovation and upgrades, strengthening brand value and consumer connection through diversified marketing activities - Rebiome recombinant collagen dressing ranked **TOP1** on Tmall's medical dressing praise list during the 2025 618 promotion[13](index=13&type=chunk) - Rebiome launched "Collagen Stick 2.0" with proprietary recombinant Type IV collagen, ranking **TOP1** among domestic liquid essences on Tmall during the 618 promotion[13](index=13&type=chunk) - Collagene upgraded "Collagen Mask King" to version 3.0, ranking **TOP4** on Tmall's smear mask hot-selling list and **TOP1** on JD's nourishing mask hot-selling list during the 618 promotion[15](index=15&type=chunk) - Rebiome and Collagene brands enhanced brand promotion and consumer interaction by participating in industry conferences, online and offline events, and public welfare initiatives[16](index=16&type=chunk)[17](index=17&type=chunk) [Channel Strategy and Refined Operations](index=9&type=section&id=Channel%20Strategy%20and%20Refined%20Operations) The company adheres to an omni-channel strategy, deepening refined online and offline operations, expanding its sales network, and enhancing efficiency and market penetration through data analysis and content marketing - Offline channel products entered approximately **1,700 public hospitals**, **3,000 private hospitals and clinics**, over **130,000 chain pharmacy stores**, and approximately **6,000 CS/KA stores**[19](index=19&type=chunk) - Rebiome brand specialty stores expanded to **24 stores nationwide** and became the **first Chinese functional skincare brand** to enter Watsons in Malaysia[19](index=19&type=chunk) - Online channels achieved sales growth through refined Tmall member operations, a multi-account Douyin live streaming system, and integration with JD's medical ecosystem for professional scenarios[20](index=20&type=chunk)[21](index=21&type=chunk) [Social Responsibility and Sustainable Development](index=11&type=section&id=Social%20Responsibility%20and%20Sustainable%20Development) The company actively participates in public welfare activities, promotes health and skincare knowledge, advocates environmental protection, and assists in combating counterfeiting to maintain market order - Partnered with the Chinese Medical Doctor Association to conduct public welfare clinics with over **400 public hospitals nationwide**, promoting health and skincare knowledge[22](index=22&type=chunk) - Launched the "Empty Bottle Recycling Program" to convert recycled tubes into regenerated products and collaborated with universities to host an environmental creative competition[22](index=22&type=chunk) - Assisted police in combating counterfeiting and participated in roundtable discussions to promote the healthy and sustainable development of the medical aesthetics industry[22](index=22&type=chunk) [Business Outlook](index=11&type=section&id=Business%20Outlook) Looking ahead to the second half of 2025, the company will continue to focus on scientific and technological research and industrialization, consolidate its technological leadership, and strengthen brand building and channel operations for sustainable high-quality development - Continuously strengthen scientific and technological research and industrialization exploration to consolidate technological leadership[23](index=23&type=chunk) - Enhance brand promotion and consumer communication to continuously build brand image and lay a solid foundation for long-term development[23](index=23&type=chunk) - Refine and solidify operations across all channels, cultivating sustainable, high-quality capabilities and organization amidst changes[23](index=23&type=chunk) [Operating Results](index=12&type=section&id=Operating%20Results) This section details the company's operating results for the first half of 2025, highlighting a 22.5% increase in total revenue driven by strong sales of professional skincare products, a slight decrease in gross margin, reduced R&D costs, increased sales and administrative expenses, and double-digit growth in profit for the period and EPS - Total revenue was **RMB 3.11 billion**, a year-on-year increase of **22.5%**, driven by refined online and offline operations, growth in star products, and enhanced brand influence[24](index=24&type=chunk) - Gross margin decreased from **82.4%** in the same period of 2024 to **81.7%** in 2025, primarily due to changes in product category structure[37](index=37&type=chunk) - R&D costs were **RMB 41.2 million**, a year-on-year decrease of **15.5%**, mainly due to some R&D projects entering the commercialization phase and reduced share-based payment expenses[39](index=39&type=chunk) - Profit for the period was **RMB 1.18 billion**, a year-on-year increase of **20.6%**; basic earnings per share was **RMB 1.14**, a year-on-year increase of **15.2%**[44](index=44&type=chunk)[45](index=45&type=chunk) [Revenue by Product Category](index=12&type=section&id=Revenue%20by%20Product%20Category) Professional skincare products are the primary source of revenue, with both functional skincare products and medical dressings achieving growth, and health food and other categories also showing increased revenue Revenue by Product Category | Product Category | 2025 (RMB millions) | 2025 (%) | 2024 (RMB millions) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Professional Skincare Products | | | | | | －Functional Skincare Products | 2,409.5 | 77.4 | 1,939.6 | 76.4 | | －Medical Dressings | 693.2 | 22.3 | 592.2 | 23.3 | | Health Food and Others | 10.0 | 0.3 | 8.6 | 0.3 | | **Total** | **3,112.7** | **100.0** | **2,540.4** | **100.0** | - Revenue from functional skincare products increased due to refined omni-channel operations, enhanced brand influence, and successful launch of star products (Focus Cream, Collagen Mask King 3.0)[25](index=25&type=chunk) - Revenue from medical dressings increased primarily due to the continuous enrichment of the product matrix[25](index=25&type=chunk) [Revenue by Sales Channel](index=13&type=section&id=Revenue%20by%20Sales%20Channel) Direct sales channel revenue increased its proportion to 74.7%, with significant growth in online direct sales through DTC stores and e-commerce platforms, and substantial growth in offline direct sales due to store expansion and new product launches Revenue by Sales Channel | Sales Channel | 2025 (RMB millions) | 2025 (%) | 2024 (RMB millions) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Direct Sales | | | | | | －Online Direct Sales via DTC Stores | 1,816.4 | 58.4 | 1,603.2 | 63.1 | | －Online Direct Sales to E-commerce Platforms | 391.1 | 12.6 | 167.4 | 6.6 | | －Offline Direct Sales | 117.8 | 3.7 | 67.6 | 2.7 | | **Subtotal** | **2,325.3** | **74.7** | **1,838.2** | **72.4** | | Sales to Distributors | 787.4 | 25.3 | 702.3 | 27.6 | | **Total** | **3,112.7** | **100.0** | **2,540.4** | **100.0** | - Online direct sales via DTC stores revenue increased by **13.3%**, mainly due to multi-platform layout, refined operations, and star product traction[27](index=27&type=chunk) - Online direct sales to e-commerce platforms revenue increased by **133.6%**, primarily driven by deep cultivation of beauty users and medical ecosystem resources on JD's self-operated channels[28](index=28&type=chunk) - Offline direct sales revenue increased by **74.3%**, mainly due to expanding the number of offline direct sales customer stores, strengthening marketing activities, and accelerating the layout of Rebiome brand stores[29](index=29&type=chunk) [Revenue by Brand](index=14&type=section&id=Revenue%20by%20Brand) Rebiome and Collagene brands are the company's main revenue contributors, both achieving steady growth, while other brands experienced a slight revenue decrease due to strategic adjustments Revenue by Brand | Brand | 2025 (RMB millions) | 2025 (%) | 2024 (RMB millions) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Professional Skincare Products | | | | | | －Rebiome | 2,541.9 | 81.7 | 2,070.9 | 81.5 | | －Collagene | 502.7 | 16.1 | 396.1 | 15.6 | | －Other Brands | 58.1 | 1.9 | 64.9 | 2.6 | | Health Food and Others | 10.0 | 0.3 | 8.6 | 0.3 | | **Total** | **3,112.7** | **100.0** | **2,540.4** | **100.0** | - Rebiome sales revenue increased by **22.7%**, mainly due to channel expansion, brand promotion, and increased market recognition of star products[32](index=32&type=chunk) - Collagene sales revenue increased by **26.9%**, mainly due to online channel expansion and successful upgrade and iteration of the star product Collagen Mask King[33](index=33&type=chunk) - Other brands' sales revenue decreased by **10.5%**, primarily due to strategic product upgrade adjustments for the Keyu brand[34](index=34&type=chunk) [Cost and Expense Analysis](index=15&type=section&id=Cost%20and%20Expense%20Analysis) Cost of sales increased due to higher sales volume, leading to a slight decrease in gross margin; sales and distribution expenses grew due to increased brand building investment; R&D costs decreased due to project commercialization and reduced share-based payment expenses; administrative expenses rose due to management expansion and digital upgrade investments - Cost of sales was **RMB 570.3 million**, a year-on-year increase of **27.5%**, mainly due to increased sales volume, higher direct material costs, increased logistics and shipping fees, and higher manufacturing and labor costs from capacity expansion[36](index=36&type=chunk) - Sales and distribution expenses were **RMB 1.06 billion**, a year-on-year increase of **18.7%**, primarily due to increased investment in brand building, market promotion, and channel expansion[38](index=38&type=chunk) - R&D costs were **RMB 41.2 million**, a year-on-year decrease of **15.5%**, mainly from some R&D projects entering the commercialization phase and reduced share-based payment expenses[39](index=39&type=chunk) - Administrative expenses were **RMB 82.6 million**, a year-on-year increase of **25.7%**, primarily due to increased payroll expenses from management expansion and increased investment in digital upgrades[42](index=42&type=chunk) [Financial Policies and Risk Management](index=16&type=section&id=Financial%20Policies%20and%20Risk%20Management) As of June 30, 2025, the company had no outstanding bank loans, making the gearing ratio inapplicable, maintained ample liquidity, and monitored and managed foreign currency, credit, and liquidity risks - As of June 30, 2025, the company had **no outstanding bank loans or other borrowings**, and the gearing ratio was not applicable[46](index=46&type=chunk) - Liquidity was **RMB 6.94 billion**, an increase of **72.3%** compared to December 31, 2024[52](index=52&type=chunk) - The Board believes foreign currency risk is **not material** to the Group, credit risk is continuously monitored and **not material**, and liquidity risk is managed by maintaining sufficient cash and cash equivalents[53](index=53&type=chunk)[54](index=54&type=chunk)[55](index=55&type=chunk) [Other Information](index=18&type=section&id=Other%20Information) This section covers details regarding the company's employees, remuneration policies, interim dividend, corporate governance, directors' and major shareholders' interests, employee incentive schemes, and use of proceeds from offerings [Employees, Training, and Remuneration Policy](index=18&type=section&id=Employees%2C%20Training%2C%20and%20Remuneration%20Policy) As of June 30, 2025, the company had 2,162 full-time employees and attracts, retains, and motivates talent through competitive remuneration, performance incentives, and comprehensive training programs - As of June 30, 2025, the Group had **2,162 full-time employees**, with **43.7%** in production and manufacturing, **29.1%** in sales and marketing, **8.6%** in R&D, and **18.6%** in general and administration[58](index=58&type=chunk) - The company offers competitive remuneration, performance-based cash incentives, and other motivational measures, and adopts comprehensive training programs[58](index=58&type=chunk) [Interim Dividend](index=19&type=section&id=Interim%20Dividend) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[61](index=61&type=chunk) [Corporate Governance and Securities Transactions](index=19&type=section&id=Corporate%20Governance%20and%20Securities%20Transactions) The company is committed to high standards of corporate governance, complying with the Listing Rules' Corporate Governance Code, though the roles of Chairman and CEO are combined. It also has policies for securities transactions and handling inside information - The company complies with the Corporate Governance Code, except that the roles of Chairman and CEO are combined by **Mr. Yan Jianya**, which the company believes provides strong and consistent leadership[62](index=62&type=chunk) - All Directors confirmed compliance with the "Model Code for Securities Transactions by Directors of Listed Issuers" during the reporting period[63](index=63&type=chunk) - The company has established and implemented information disclosure policies and procedures, including monitoring potential inside information, to ensure prompt identification and assessment[63](index=63&type=chunk) [Directors' and Major Shareholders' Interests](index=19&type=section&id=Directors%27%20and%20Major%20Shareholders%27%20Interests) This section discloses the interests and short positions of directors, chief executives, and major shareholders in the company's shares as of June 30, 2025, indicating Mr. Yan Jianya and his spouse Dr. Fan Daidi as principal shareholders Directors' or Chief Executive's Interests in the Company's Shares | Name of Director or Chief Executive | Nature of Interest | Number of Shares Interested | Approximate Percentage of Shareholding in the Company | | :--- | :--- | :--- | :--- | | Mr. Yan Jianya | Spouse's interest; Beneficiary of a trust | 590,407,572 | 55.13% | | Ms. Ye Juan | Beneficiary of a trust | 1,049,800 | 0.10% | | Ms. Fang Juan | Beneficiary of a trust | 1,157,601 | 0.11% | | Ms. Zhang Huijuan | Beneficiary of a trust | 1,240,000 | 0.12% | Major Shareholders' Interests in the Company's Shares | Name of Shareholder | Capacity and Nature of Interest | Number of Shares | Approximate Percentage of Shareholding in the Company | | :--- | :--- | :--- | :--- | | Dr. Fan | Interest in controlled corporation; Spouse's interest | 590,407,572 | 55.13% | | Juzi Holding | Beneficial owner | 582,161,535 | 54.36% | | Refulgence Holding | Interest in controlled corporation | 582,161,535 | 54.36% | | Trident Trust Company (B.V.I.) Limited | Trustee | 582,161,535 | 54.36% | - During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities on the Stock Exchange[69](index=69&type=chunk) [Employee Incentive Schemes](index=22&type=section&id=Employee%20Incentive%20Schemes) The company has a Restricted Share Unit (RSU) Scheme and a 2023 Share Option and Share Award Scheme, designed to attract and retain talent, incentivize employee contributions, and promote the Group's long-term development, with some share options exercised during the period - The RSU Scheme was adopted in December 2021, with a maximum of **19,000,000 shares** fully granted and no further grants after listing[71](index=71&type=chunk) - The 2023 Share Option Scheme and 2023 Share Award Scheme were adopted on August 17, 2023, with a maximum of **99,500,000 shares** issuable[79](index=79&type=chunk) - On December 28, 2023, the company granted **20,000,000 share options** to **128 eligible participants** under the 2023 Share Option Scheme, with an exercise price of **HKD 35.05 per share**[82](index=82&type=chunk)[84](index=84&type=chunk) - During the reporting period, a total of **7,684,000 share options** were exercised at an exercise price of **HKD 35.05 per share**[85](index=85&type=chunk) [Use of Proceeds from Global Offering and Placements](index=27&type=section&id=Use%20of%20Proceeds%20from%20Global%20Offering%20and%20Placements) The company details the intended and actual use of net proceeds from its Global Offering (IPO) and two placements and subscriptions, primarily for R&D investment, capacity expansion, sales and distribution network enhancement, operational and information system upgrades, and working capital - Net proceeds from the Global Offering were approximately **HKD 573.7 million**, primarily allocated to R&D investment (**11%**), production capacity expansion (**28%**), enhancement of omni-channel sales and distribution network (**46%**), operational and information system upgrades (**5%**), and working capital (**10%**)[89](index=89&type=chunk)[90](index=90&type=chunk) Use of Net Proceeds from Global Offering (As of June 30, 2025) | Use of Proceeds | Percentage of Proceeds | Net Proceeds (HKD millions) | Cumulative Amount Used (HKD millions) | Unused Amount (HKD millions) | | :--- | :--- | :--- | :--- | :--- | | R&D Investment | 11% | 63.1 | 63.1 | 0 | | Expansion of Production Capacity | 28% | 160.6 | 160.6 | 0 | | Enhancement of Sales and Distribution Network | 46% | 263.9 | 263.9 | 0 | | Improvement of Operations and Information Systems | 5% | 28.7 | 24.8 | 3.9 | | Working Capital and General Corporate Purposes | 10% | 57.4 | 57.4 | 0 | | **Total** | **100%** | **573.7** | **569.8** | **3.9** | - Net proceeds from the May 2024 placement and subscription were approximately **HKD 1.63 billion**, with **90%** for core business development and ecosystem layout, and **10%** for supplementing working capital[93](index=93&type=chunk) Use of Net Proceeds from 2024 Placement and Subscription (As of June 30, 2025) | Use of Proceeds | Percentage of Proceeds | Net Proceeds (HKD millions) | Cumulative Amount Used (HKD millions) | Unused Amount (HKD millions) | | :--- | :--- | :--- | :--- | :--- | | Core Business Development and Ecosystem Layout | 90% | 1,464.3 | 646.7 | 817.6 | | Supplementing Working Capital and General Corporate Purposes | 10% | 162.7 | 55.2 | 107.5 | | **Total** | **100%** | **1,627** | **701.9** | **925.1** | - Net proceeds from the April 2025 placement and subscription were approximately **HKD 2.29 billion**, with **90%** intended for core business development and ecosystem layout (including brand promotion, marketing, category expansion, overseas business, and R&D investment), and **10%** for supplementing working capital; unused as of June 30, 2025[98](index=98&type=chunk) [Independent Review Report](index=30&type=section&id=Independent%20Review%20Report) This section presents the independent auditor's review report on the interim financial information [Review Conclusion](index=30&type=section&id=Review%20Conclusion) Ernst & Young has reviewed the Group's interim financial information for the six months ended June 30, 2025, and found no matters that lead them to believe it is not prepared in all material respects in accordance with International Accounting Standard 34 - The independent auditor is **Ernst & Young**[103](index=103&type=chunk) - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410[101](index=101&type=chunk) - The conclusion is that the interim financial information is prepared in all material respects in accordance with International Accounting Standard 34[102](index=102&type=chunk) [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=31&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This section provides the interim condensed consolidated statement of profit or loss and other comprehensive income [Profit or Loss Statement Overview](index=32&type=section&id=Profit%20or%20Loss%20Statement%20Overview) For the six months ended June 30, 2025, the company reported revenue of RMB 3.11 billion, gross profit of RMB 2.54 billion, profit for the period of RMB 1.18 billion, and basic earnings per share of RMB 1.14, all showing year-on-year growth Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the Six Months Ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 3,112,662 | 2,540,432 | | Cost of Sales | (570,317) | (447,192) | | **Gross Profit** | **2,542,345** | **2,093,240** | | Selling and Distribution Expenses | (1,058,575) | (892,020) | | Administrative Expenses | (82,635) | (65,650) | | R&D Costs | (41,176) | (48,701) | | Other Income | 68,800 | 52,428 | | **Profit Before Tax** | **1,444,148** | **1,155,190** | | Income Tax Expense | (261,704) | (174,640) | | **Profit for the Period** | **1,182,444** | **980,550** | | Profit for the Period Attributable to Owners of the Parent | 1,182,083 | 983,164 | | Basic Earnings Per Share (RMB) | 1.14 | 0.99 | | Diluted Earnings Per Share (RMB) | 1.13 | 0.97 | [Other Comprehensive Income](index=33&type=section&id=Other%20Comprehensive%20Income) During the reporting period, net other comprehensive income was RMB (9,131) thousand, primarily affected by exchange differences on translation of functional currency to presentation currency and fair value changes of equity investments designated at fair value through other comprehensive income Other Comprehensive Income (For the Six Months Ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Exchange differences on translation of overseas operations | 67 | (8,248) | | Translation of the company's functional currency to presentation currency | (21,735) | 9,830 | | Equity investments designated at fair value through other comprehensive income: fair value changes | 12,537 | – | | **Other comprehensive income for the period, net of tax** | **(9,131)** | **1,582** | | **Total comprehensive income for the period, net of tax** | **1,173,313** | **982,132** | [Interim Condensed Consolidated Statement of Financial Position](index=33&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This section presents the interim condensed consolidated statement of financial position [Asset Structure](index=34&type=section&id=Asset%20Structure) As of June 30, 2025, the company's total assets reached RMB 11.29 billion, with a significant proportion of current assets, a substantial increase in cash and cash equivalents, and a slight decrease in non-current assets Asset Structure (As of June 30, 2025) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **Total Non-current Assets** | **1,398,527** | **1,636,001** | | Property, Plant and Equipment | 1,163,594 | 1,041,771 | | Investments accounted for using the equity method | 77,126 | 11,436 | | Equity investments designated at fair value through other comprehensive income | 28,720 | – | | **Total Current Assets** | **9,887,728** | **6,401,957** | | Inventories | 441,144 | 310,814 | | Trade and Other Receivables | 466,472 | 141,282 | | Financial assets at fair value through profit or loss | 1,917,487 | 1,828,640 | | Cash and Cash Equivalents | 6,943,768 | 4,030,207 | | **Total Assets** | **11,286,255** | **8,037,958** | [Liabilities and Equity Structure](index=34&type=section&id=Liabilities%20and%20Equity%20Structure) As of June 30, 2025, the company's total liabilities increased to RMB 2.10 billion, primarily due to a significant increase in dividends payable, while total equity grew to RMB 9.19 billion, indicating strengthened financial position Liabilities and Equity Structure (As of June 30, 2025) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **Total Current Liabilities** | **2,030,033** | **835,995** | | Trade and Other Payables | 299,990 | 286,708 | | Other Payables and Accruals | 281,457 | 408,890 | | Dividends Payable | 1,278,874 | – | | **Total Non-current Liabilities** | **67,374** | **82,141** | | **Total Liabilities** | **2,097,407** | **918,136** | | **Total Equity** | **9,188,848** | **7,119,822** | | Equity Attributable to Owners of the Parent | 9,176,877 | 7,108,212 | | Non-controlling Interests | 11,971 | 11,610 | [Interim Condensed Consolidated Statement of Changes in Equity](index=35&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This section presents the interim condensed consolidated statement of changes in equity [Equity Movement Overview](index=36&type=section&id=Equity%20Movement%20Overview) For the six months ended June 30, 2025, the company's total equity increased from RMB 7.12 billion at the beginning of the year to RMB 9.19 billion, primarily driven by profit for the period and proceeds from share issuance, while also reflecting the impact of declared dividends and share-based payments - As of January 1, 2025, total equity was **RMB 7.12 billion**[109](index=109&type=chunk) - Profit for the period was **RMB 1.18 billion**, and proceeds from share issuance increased equity by **RMB 2.16 billion**[109](index=109&type=chunk) - Final dividend for 2024 declared was **RMB 1.28 billion**[109](index=109&type=chunk) - As of June 30, 2025, total equity was **RMB 9.19 billion**[109](index=109&type=chunk) [Interim Condensed Consolidated Statement of Cash Flows](index=37&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This section presents the interim condensed consolidated statement of cash flows [Cash Flow Overview](index=38&type=section&id=Cash%20Flow%20Overview) For the six months ended June 30, 2025, net cash flow from operating activities decreased, investing activities shifted from net outflow to net inflow, and net cash flow from financing activities significantly increased due to ordinary share issuance, leading to a substantial growth in cash and cash equivalents at period-end Interim Condensed Consolidated Statement of Cash Flows (For the Six Months Ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net cash flows from operating activities | 715,689 | 922,792 | | Net cash flows from / (used in) investing activities | 73,751 | (343,498) | | Net cash flows from financing activities | 2,149,080 | 1,484,309 | | Net increase in cash and cash equivalents | 2,938,520 | 2,063,603 | | Cash and cash equivalents at end of period | 6,943,768 | 4,564,386 | - Net cash flows from operating activities decreased, mainly due to increases in inventories, trade and other receivables, and prepayments[111](index=111&type=chunk) - Net cash flows from investing activities turned positive, mainly due to increased proceeds from disposal of financial assets at fair value through profit or loss and a decrease in bank deposits[112](index=112&type=chunk) - Net cash flows from financing activities significantly increased, primarily from proceeds from the issuance of ordinary shares[112](index=112&type=chunk) [Notes to the Interim Condensed Consolidated Financial Information](index=39&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) This section provides detailed notes to the interim condensed consolidated financial information, covering accounting policies, segment information, revenue analysis, profit before tax components, income tax, earnings per share, property, plant and equipment, trade receivables and payables, share capital, commitments, related party transactions, fair value of financial instruments, and post-reporting period events [Basis of Preparation and Accounting Policies](index=40&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) The interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 and adopted revised IFRS accounting standards, which had no significant impact on the financial information - The interim condensed consolidated financial information has been prepared in accordance with **International Accounting Standard 34 "Interim Financial Reporting"**[113](index=113&type=chunk) - The adoption of amendments to **IAS 21 "Lack of Exchangeability"** had no impact on the interim condensed consolidated financial information[115](index=115&type=chunk) [Operating Segments and Geographical Information](index=40&type=section&id=Operating%20Segments%20and%20Geographical%20Information) The Group operates in a single operating segment, primarily engaged in the R&D, manufacturing, and sales of beauty and health products based on bioactive ingredients, with all revenue and non-current assets derived from mainland China - The Group operates in a **single operating segment**, primarily engaged in the R&D, manufacturing, and sales of beauty and health products based on bioactive ingredients[116](index=116&type=chunk) - During the period, all of the Group's revenue was derived from customers located in **mainland China**, and all non-current assets were located in **mainland China**[117](index=117&type=chunk) [Revenue and Other Income Analysis](index=41&type=section&id=Revenue%20and%20Other%20Income%20Analysis) Revenue from contracts with customers is entirely from the sale of goods within mainland China, recognized at a point in time. Other income primarily consists of interest income and government grants Revenue Analysis (For the Six Months Ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue from contracts with customers | 3,112,662 | 2,540,432 | | Category of goods or services: Sale of goods | 3,112,662 | 2,540,432 | | Geographical markets: Mainland China | 3,112,662 | 2,540,432 | | Timing of revenue recognition: Goods transferred at a point in time | 3,112,662 | 2,540,432 | Other Income Analysis (For the Six Months Ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Government grants | 4,742 | 13,241 | | Interest income | 63,396 | 38,991 | | Others | 662 | 196 | | **Total** | **68,800** | **52,428** | [Components of Profit Before Tax](index=42&type=section&id=Components%20of%20Profit%20Before%20Tax) Profit before tax is calculated after deducting costs such as inventories, depreciation, amortization, marketing and promotion expenses, and including interest income and share-based payment expenses - Cost of inventories, consumables, and customized products was **RMB 417.86 million**[121](index=121&type=chunk) - Depreciation of property, plant and equipment was **RMB 33.83 million**, and depreciation of right-of-use assets was **RMB 3.26 million**[121](index=121&type=chunk) - Marketing and promotion expenses were **RMB 969.43 million**, and equity-settled share-based payment expenses were **RMB 22.62 million**[121](index=121&type=chunk) [Income Tax and Dividends](index=43&type=section&id=Income%20Tax%20and%20Dividends) Income tax expense increased due to higher taxable profit, with some subsidiaries enjoying a 15% preferential corporate income tax rate. The company declared a final dividend and a special dividend for 2024 but no interim dividend Income Tax Expense Analysis (For the Six Months Ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current tax: deducted during the year | 277,250 | 169,763 | | Deferred tax | (15,546) | 4,877 | | **Total tax expense for the year** | **261,704** | **174,640** | - Corporate income tax in mainland China is accrued at a statutory rate of **25%**, with certain subsidiaries enjoying a **15% preferential tax rate**[123](index=123&type=chunk) - On June 13, 2025, shareholders approved a 2024 final dividend of **RMB 0.6021 per share** and a special dividend of **RMB 0.5921 per share**, totaling **RMB 1.28 billion**[125](index=125&type=chunk) - During the period, the company neither paid nor declared an interim dividend[126](index=126&type=chunk) [Earnings Per Share Calculation](index=44&type=section&id=Earnings%20Per%20Share%20Calculation) Basic and diluted earnings per share are calculated based on profit for the period attributable to ordinary equity holders of the parent, considering the weighted average number of ordinary shares issued and the dilutive effect of the Restricted Share Unit Scheme and Share Option Scheme Earnings Per Share Calculation (For the Six Months Ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit attributable to ordinary equity holders of the parent used for basic EPS calculation | 1,182,083 | 983,164 | | **Number of Shares** | **2025** | **2024** | | Weighted average number of ordinary shares issued for basic EPS calculation | 1,034,853,754 | 988,391,916 | | Dilutive effect - weighted average number of ordinary shares: Restricted Share Unit Scheme | 9,336,447 | 5,479,715 | | Dilutive effect - weighted average number of ordinary shares: 2023 Share Options | 5,028,154 | 19,033,962 | | **Total** | **1,049,218,355** | **1,012,905,593** | [Property, Plant and Equipment](index=44&type=section&id=Property%2C%20Plant%20and%20Equipment) During the reporting period, the company acquired assets worth RMB 161.24 million and disposed of assets with a net book value of RMB 5.59 million, generating a net gain of RMB 1.61 million - For the six months ended June 30, 2025, the Group acquired assets at a cost of **RMB 161.24 million**[129](index=129&type=chunk) - Assets with a net book value of **RMB 5.59 million** were disposed of, resulting in a net gain on disposal of **RMB 1.61 million**[129](index=129&type=chunk) [Trade Receivables and Payables](index=45&type=section&id=Trade%20Receivables%20and%20Payables) As of the end of the reporting period, both trade receivables and payables were primarily aged within one year, indicating effective liquidity management Ageing Analysis of Trade Receivables (As of June 30, 2025) | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 1 year | 466,319 | 140,804 | | 1 to 2 years | 148 | 440 | | 2 to 3 years | 5 | 5 | | Over 3 years | – | 33 | | **Total** | **466,472** | **141,282** | Ageing Analysis of Trade Payables (As of June 30, 2025) | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 1 year | 293,939 | 279,253 | | 1 to 2 years | 3,042 | 3,300 | | 2 to 3 years | 3,009 | 4,155 | | **Total** | **299,990** | **286,708** | [Share Capital Movements and Commitments](index=45&type=section&id=Share%20Capital%20Movements%20and%20Commitments) The company's share capital increased due to the issuance of ordinary shares, and contractual commitments as of the reporting period end were primarily for buildings, plant, and machinery - Issued and fully paid ordinary shares increased from **1,028,220,000 shares** as of December 31, 2024, to **1,070,904,000 shares** as of June 30, 2025, with share capital increasing from **RMB 65 thousand** to **RMB 68 thousand**[132](index=132&type=chunk)[133](index=133&type=chunk) - The increase in share capital primarily resulted from the issuance of **35,000,000 ordinary shares** through private placement and shares issued to employees under the 2023 Share Option Scheme[133](index=133&type=chunk) Contractual Commitments (As of June 30, 2025) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Buildings | 115,538 | 45,591 | | Plant and Machinery | 138,202 | 87,251 | | **Total** | **253,740** | **132,842** | [Related Party Transactions and Fair Value of Financial Instruments](index=47&type=section&id=Related%20Party%20Transactions%20and%20Fair%20Value%20of%20Financial%20Instruments) Key management personnel compensation is disclosed as related party transactions, and the fair value measurement and hierarchy of financial instruments are detailed to ensure financial transparency Key Management Personnel Remuneration (For the Six Months Ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Salaries, bonuses, allowances, and benefits in kind | 1,333 | 1,851 | | Contributions to retirement benefit plans | 174 | 225 | | Equity-settled share-based payment expenses | 6,977 | 14,564 | | **Total** | **8,484** | **16,640** | - Fair value measurements of financial instruments are categorized into Level 1 (quoted prices in active markets) and Level 2 (significant observable inputs), with no transfers into or out of Level 3 during the reporting period[139](index=139&type=chunk)[141](index=141&type=chunk) Assets Measured at Fair Value (As of June 30, 2025) | Indicator | Level 1 (RMB thousands) | Level 2 (RMB thousands) | Level 3 (RMB thousands) | Total (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Equity investments designated at fair value through other comprehensive income | 28,720 | – | – | 28,720 | | Financial assets at fair value through profit or loss: financial products | – | 1,917,487 | – | 1,917,487 | | **Total** | **28,720** | **1,917,487** | **–** | **1,946,207** | [Events After Reporting Period and Approval](index=48&type=section&id=Events%20After%20Reporting%20Period%20and%20Approval) No significant events occurred after the reporting period, and the interim financial statements were approved and authorized for issue by the Board on August 27, 2025 - No significant events occurred after the reporting period[142](index=142&type=chunk) - The interim financial statements were approved and authorized for issue by the Board on August 27, 2025[143](index=143&type=chunk) [Definitions](index=48&type=section&id=Definitions) This section provides definitions for key terms and abbreviations used throughout the interim report to ensure clear and consistent understanding for readers [Glossary of Terms](index=49&type=section&id=Glossary%20of%20Terms) This section defines key terms and abbreviations used in the interim report to ensure clear and consistent understanding for readers - This section includes definitions for terms such as "Board", "Business Day", "Company", "Directors", "Global Offering", "Group", "HKD", "Hong Kong", "HKEX", "Independent Third Party", and "Latest Practicable Date"[145](index=145&type=chunk) - It also includes definitions for "Listing", "Listing Rules", "Macau", "Main Board", "PRC", "Prospectus", "Province", "Reporting Period", and "RMB"[146](index=146&type=chunk) - Furthermore, it defines terms like "SFO", "Shares", "Shareholder", "Subsidiary", "US", and "USD"[149](index=149&type=chunk)

Financial Performance - Total revenue for the six months ended June 30, 2025, was approximately RMB 319,937,000, a decrease of about 68.55% compared to RMB 1,017,421,000 for the same period last year[1] - The unaudited net loss for the six months ended June 30, 2025, was approximately RMB 15,499,000, compared to a net profit of RMB 13,857,000 for the same period last year[1] - Basic loss per share for the six months ended June 30, 2025, was approximately RMB 0.030, compared to basic earnings per share of RMB 0.0317 for the same period last year[4] - The company reported a net loss attributable to the owners of the parent of approximately RMB 15,621 thousand for the six months ended June 30, 2025, compared to a net profit of RMB 16,487 thousand for the same period in 2024[19] - The company recorded an unaudited net loss attributable to the owners of the parent company of approximately RMB 15,621,000 for the six months ended June 30, 2025, compared to a net profit of approximately RMB 16,487,000 in the same period last year, primarily due to a significant reduction in the number of high-standard farmland construction projects and a substantial decline in sales of PVC pipe products[36] Operating Costs and Expenses - Total operating costs for the six months ended June 30, 2025, were RMB 338,106,000, compared to RMB 1,001,086,000 for the same period last year[3] - Research and development expenses increased to RMB 4,574,000 for the six months ended June 30, 2025, from RMB 2,738,000 in the same period last year[3] - The unaudited sales expenses for the six months ended June 30, 2025, were approximately RMB 7,407,000, a decrease of about 10.58% from approximately RMB 8,284,000 in the same period last year[33] - The unaudited management expenses increased to approximately RMB 29,789,000, up about 10.02% from approximately RMB 27,077,000 in the previous year[33] - The total profit for the six months ended June 30, 2025, included depreciation of RMB 19,438 thousand, up from RMB 13,297 thousand in the same period of 2024[15] Cash Flow and Liquidity - Cash and cash equivalents as of June 30, 2025, were RMB 360,251,000, down from RMB 422,324,000 as of December 31, 2024[5] - The net cash flow from operating activities for the six months ended June 30, 2025, was RMB (90,368) thousand, compared to RMB 74,064 thousand for the same period in 2024, indicating a significant decline[8] - The financing activities generated a net cash flow of RMB 27,582 thousand for the six months ended June 30, 2025, compared to RMB 23,587 thousand in the same period of 2024, reflecting a 12.6% increase[8] - The company has not encountered any liquidity issues during the six months ended June 30, 2025, relying primarily on cash generated from operating activities[39] Assets and Liabilities - Total assets as of June 30, 2025, were RMB 1,178,038,000, compared to RMB 1,232,947,000 as of December 31, 2024[6] - Total liabilities as of June 30, 2025, were RMB 778,942,000, compared to RMB 822,939,000 as of December 31, 2024[6] - The total equity attributable to owners of the parent as of June 30, 2025, was RMB 370,684,000, down from RMB 381,718,000 as of January 1, 2025[7] - The company reported a total accounts receivable of RMB 298,992,000 as of June 30, 2025, compared to RMB 292,507,000 as of December 31, 2024[9] - The accounts payable amounted to RMB 353,040,000 as of June 30, 2025, down from RMB 452,530,000 as of December 31, 2024[24] Corporate Governance and Compliance - The board of directors recommended not to declare an interim dividend for the six months ended June 30, 2025[1] - The company did not declare an interim dividend for the six months ending June 30, 2025, compared to no dividend declared in the same period of 2024[53] - The board of directors confirmed compliance with the standard code of conduct for securities trading during the six months ending June 30, 2025[56] - The company adhered to the corporate governance code during the reporting period, enhancing accountability and transparency[55] - No conflicts of interest were reported among directors, management, and shareholders regarding competitive businesses[52] Strategic Focus and Future Plans - The company aims to strengthen its position as a leader in modern water-saving irrigation agriculture, focusing on five major business segments: plastic product R&D and production, hydraulic engineering, plastic product sales, planting and land transfer, and smart agricultural information networks[37] - The company plans to increase R&D investment in water-saving irrigation technology and enhance core competitiveness through deepening industry-academic-research cooperation and accelerating technology transfer[38] - The company has no major investments or future plans for significant investments as of June 30, 2025, indicating a cautious approach to capital allocation[46] Employee and Operational Structure - The company has approximately 469 full-time employees as of June 30, 2025, emphasizing the importance of employee quality for business growth and profitability[42] - The company has not engaged in any significant acquisitions or disposals as of June 30, 2025, reflecting a stable operational strategy[47] Shareholding Structure - Xinjiang Tianye (Group) Co., Ltd. holds approximately 98.98% of the company's domestic shares, representing about 60.42% of the total issued share capital[49] - Longmao Holdings Limited holds 14,407,000 H-shares, representing approximately 7.12% of the total issued shares of the company[50] - The total number of issued shares of the company is 519,521,560, including domestic and H-shares[51] Restructuring and Related Transactions - The restructuring arrangement involves Tianze Water Conservancy directly holding 313,886,921 domestic shares, accounting for approximately 98.98% of the total issued domestic shares and about 60.42% of the total issued share capital[59] - The restructuring arrangement includes Tianye Group and the Eighth Division State-owned Assets Supervision and Administration Commission holding 51% and 49% voting rights in Tianze Water Conservancy, respectively[59] Audit and Internal Controls - The audit committee reviewed the accounting principles and practices adopted by the group and discussed internal controls and financial reporting matters[54] - The company and its subsidiaries did not purchase, sell, or redeem any listed securities during the six months ending June 30, 2025[58]

HUAXIN CEMENT CO., LTD.* 華新水泥股份有限公司 （於 中 華 人 民 共 和 國 註 冊 成 立 的 股 份 有 限 公 司） 股份代號 : 6655 中期報告 * 僅供識別 INTERIM REPORT * For identification purposes only HUAXIN CEMENT CO., LTD.* 華新水泥股份有限公司 (a joint stock company incorporated in the People's Republic of China with limited liability) Stock code : 6655 INTERIM REPORT 2025 在本報告書中，除非文義另有所指，下列詞語具有如下含義： | A股 | 指 | 本公司股本中每股面值人民幣1.00元的在上交所上市的普通股，以 | | --- | --- | --- | | | | 人民幣認購及交易 | | 審計委員會 | 指 | 本公司審計委員會 | | 董事會 | 指 | 本公司董事會 | | 中國 | 指 | 中華人民共和國 | | 董事 | 指 | 本公司董事 ...

Economic Performance - In Q1 2025, China's GDP growth reached 5.4%, followed by a 5.2% expansion in Q2, indicating a steady economic recovery despite ongoing pressures[13]. - The residential real estate sector's value-added output declined to RMB 8.48 trillion in 2024, accounting for 6.3% of GDP[13]. - New commercial housing sales plummeted from a peak of 1.6 billion square meters to 970 million square meters since 2021, with annual sales projected to stabilize between 800 million and 1 billion square meters[15]. - Over 130 local governments have implemented supporting policies since April 2025 to stabilize the real estate market[13]. Company Financials - For the six months ended 30 June 2025, the loss after income tax expense was approximately RMB254,129,000, compared to a loss of RMB241,012,000 for the same period in 2024[18]. - The loss attributable to the owners of the Company for the Period was approximately RMB230,929,000, a decrease from RMB327,653,000 in the corresponding period of 2024, primarily due to improved performance in the real estate sales business segment[19]. - Basic loss per share for the Period was RMB4.71 cents, a decrease of approximately 29.49% from RMB6.68 cents in the same period last year[20]. - The Group recorded revenue of RMB4,899,155,000 for the Period, representing a decrease of approximately 6.58% compared to RMB5,244,150,000 in the corresponding period of 2024[24]. - Gross profit increased to RMB245,562,000, representing an increase of approximately 23.62% compared to RMB198,635,000 in the corresponding period of 2024, with a gross profit margin of 5.01%[25]. Project Development - As of 30 June 2025, the Group's portfolio consisted of 44 property development projects, focusing on residential and commercial complex properties[28]. - The saleable gross floor area (GFA) of unsold or pre-sold properties as of 30 June 2025 was 3,791,122 sq.m.[29]. - Projects in Chongqing accounted for 55% of total revenue, while Nanjing and Foshan contributed 31.56% and 24.32%, respectively[24]. - The company has a diverse portfolio with projects in multiple cities, enhancing its market presence and expansion potential[33]. - The company is developing multiple projects, including the Main Urban Site DK1, DK2, and DK3, each with a GFA exceeding 250,000 square meters[41]. Debt and Liquidity - As of June 30, 2025, the Group's total interest-bearing debt was RMB 33,165.31 million, down from RMB 34,908.87 million as of December 31, 2024[57]. - The net gearing ratio (net interest-bearing debt to equity) improved to 55% as of June 30, 2025, compared to 67% at the end of 2024[59]. - The Group's bank balances and cash increased to RMB 14,523.42 million as of June 30, 2025, from RMB 12,734.45 million at the end of 2024[56]. - The cash to short-term debt ratio was 5.67 times, indicating strong liquidity[59]. Strategic Focus - The company aims to increase cash reserves and optimize asset structure for sustainable development[16]. - The strategic focus is on high-quality and sustainable development through precise measures aligned with national directives[15]. - The Group will focus on precision investments, product innovation, operational value enhancement, and asset revitalization in the second half of 2025[67]. - The Group plans to acquire premium land parcels in core cities to enhance project reservations and solidify sales rankings[71]. Shareholder Information - As of June 30, 2025, China Merchants Group Ltd. holds 3,646,889,329 ordinary shares, representing 74.35% of the issued share capital of the Company[103]. - Approximately 74.35% of the issued share capital is directly held by Success Well, which is 20% and 80% owned by Good Ease Holdings Limited and Eureka, respectively[104]. - The Group had no interim dividend declared for the six months ended June 30, 2025, consistent with the same period in 2024[73]. Operational Metrics - The Group achieved aggregate contracted sales of approximately RMB 16,092.66 million for the six months ended June 30, 2025, representing a year-on-year decrease of approximately 18.24%[48]. - The total contracted sales area for the same period was approximately 720,958 square meters, reflecting a year-on-year decrease of approximately 17%[48]. - The average selling price during this period was approximately RMB 22,321 per square meter[48]. Compliance and Governance - The company complied with the Corporate Governance Code provisions during the six months ended June 30, 2025, except for specific director appointment terms[127]. - All directors confirmed compliance with the Model Code for Securities Transactions for the six months ended June 30, 2025[131]. - The company has adopted a code of conduct for securities transactions by directors that meets or exceeds the required standards[133].