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].

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) The company reported unaudited interim results for H1 2024, with revenue down 30.6% to HK$72,309 thousand, gross profit down 35.0% to HK$55,397 thousand, and loss attributable to owners narrowing to HK$5,130 thousand | Metric | | | For the six months ended June 30 | | | :--- | :--- | :--- | :--- | :--- | | | | | 2024 | 2023 | | Revenue | | HK$ thousand | 72,309 | 104,131 | | Gross profit | | HK$ thousand | 55,397 | 85,233 | | Loss before tax | | HK$ thousand | (5,130) | (14,290) | | Loss attributable to owners of the Company | | HK$ thousand | (5,130) | (12,327) | | Gross profit margin | | % | 76.6 | 81.9 | | Loss attributable to owners of the Company margin | | % | (7.1) | (11.8) | | — Loss per share | Basic and diluted | HK$ | (0.02) | (0.05) | [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated statement of profit or loss and other comprehensive income and financial position, showing decreased revenue, narrowed loss, and improved net liabilities [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement details the company's financial performance, showing revenue, cost of sales, gross profit, other income, expenses, and the resulting loss for the period | Metric | Note | For the six months ended | | | :--- | :--- | :--- | :--- | | | | June 30, 2024 (HK$ thousand) | June 30, 2023 (HK$ thousand) | | Revenue | 3 | 72,309 | 104,131 | | Cost of sales | | (16,912) | (18,898) | | **Gross profit** | | **55,397** | **85,233** | | Other income | | 2,463 | 2,004 | | Other gains and losses | 5 | (5,539) | (961) | | Selling and distribution costs | | (24,838) | (37,508) | | Administrative expenses | | (31,389) | (61,987) | | Finance costs | | (1,224) | (1,071) | | **Loss before tax** | 6 | **(5,130)** | **(14,290)** | | Taxation | 7 | — | — | | **Loss for the period** | | **(5,130)** | **(14,290)** | | Other comprehensive income | | | | | Exchange reserve released on deconsolidation of overseas subsidiaries | | 1,448 | — | | **Total comprehensive expense for the period** | | **(3,682)** | **(12,279)** | | Loss for the period attributable to: | | | | | Owners of the Company | | (5,130) | (12,327) | | Non-controlling interests | | — | (1,963) | | **Total** | | **(5,130)** | **(14,290)** | | Total comprehensive expense for the period attributable to: | | | | | Owners of the Company | | (3,682) | (11,011) | | Non-controlling interests | | — | (1,268) | | **Total** | | **(3,682)** | **(12,279)** | | Loss per share Basic and diluted (HK$) | 9 | (0.02) | (0.05) | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement provides a snapshot of the company's assets, liabilities, and equity at the end of the reporting period, highlighting changes in financial position | Metric | Note | As at June 30, 2024 (HK$ thousand) | As at December 31, 2023 (HK$ thousand) | | :--- | :--- | :--- | :--- | | **Non-current assets** | | | | | Property, plant and equipment | | 26,071 | 27,758 | | Investment properties | | 2,100 | 2,100 | | Loan to an associate | | 5,757 | 5,236 | | Deferred tax assets | | 2,852 | 3,804 | | Deposits and prepayments for life insurance policies | | 1,944 | 1,930 | | Lease deposits and prepayments | | 3,568 | 4,474 | | **Total non-current assets** | | **42,292** | **45,302** | | **Current assets** | | | | | Inventories | | 15,149 | 13,324 | | Trade and other receivables | 10 | 20,382 | 23,494 | | Loan to an associate | | 38,765 | 38,765 | | Pledged time deposits | | 21,223 | 21,223 | | Bank balances and cash | | 38,074 | 40,002 | | **Total current assets** | | **133,593** | **136,808** | | **Current liabilities** | | | | | Trade and other payables | 11 | 108,544 | 131,424 | | Contract liabilities | | 70 | 151 | | Amounts due to related companies | | 7,863 | 10,449 | | Loan from a related company | | 10,692 | 10,692 | | Lease liabilities | | 14,243 | 14,845 | | Other borrowings — due within one year | | 15,000 | 15,000 | | Tax payable | | 275 | 178 | | **Total current liabilities** | | **156,687** | **182,739** | | **Net current liabilities** | | **(23,094)** | **(45,931)** | | **Total assets less current liabilities** | | **19,198** | **(629)** | | **Non-current liabilities** | | | | | Employee benefit obligations | | 1,665 | 1,665 | | Lease liabilities | | 11,224 | 13,878 | | **Total non-current liabilities** | | **12,889** | **15,543** | | **Net assets / (liabilities)** | | **6,309** | **(16,172)** | | **Capital and reserves** | | | | | Share capital | | 2,428 | 2,428 | | Reserves | | (4,389) | (707) | | **Equity attributable to owners of the Company** | | **(1,961)** | **1,721** | | Non-controlling interests | | 8,270 | (17,893) | | **Total equity** | | **6,309** | **(16,172)** | [Notes to the Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section details the basis of preparation, accounting policies, segment information, revenue, taxation, loss per share, receivables/payables, and post-reporting events, including going concern uncertainties [1. Basis of Preparation](index=6&type=section&id=1.%20Basis%20of%20Preparation) This section outlines the accounting standards used for financial statement preparation, addresses issues of lost records, and discusses the company's going concern uncertainties - The consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards issued by the HKICPA, and include applicable disclosures required by the Listing Rules of the Stock Exchange of Hong Kong Limited and the Hong Kong Companies Ordinance[9](index=9&type=chunk) - After the retirement of former executive director Mr. Yang Jun, the company was unable to locate certain books, records, and supporting documents for Shang Ying International Group and Shang Ying Retail Group[10](index=10&type=chunk)[11](index=11&type=chunk) - For financial statement preparation, the directors decided to consolidate the carrying amounts of assets and liabilities, and the results and cash flow data of Shang Ying International Group and Shang Ying Retail Group for the six months ended June 30, 2023[12](index=12&type=chunk) - The company's shares have been suspended from trading since April 2, 2024, with limited working capital. The Group has entered into an agreement to dispose of its financial services business (Shang Ying Capital Group), but its books and records are considered inadequate[12](index=12&type=chunk)[13](index=13&type=chunk) - Shang Ying Internet Medical (Shanghai) Co., Ltd. had its bankruptcy liquidation application accepted on April 29, 2024, and a liquidator appointed on May 6, leading to the Company losing control and deconsolidating it from that date[14](index=14&type=chunk) - As of the end of the reporting period, the Group recorded a net loss of approximately **HK$5,130 thousand** (2023: HK$14,290 thousand), with current liabilities exceeding current assets by approximately **HK$23,094 thousand**, and total liabilities exceeding total assets by approximately **HK$998 thousand**[15](index=15&type=chunk) - The Board believes that, considering the **HK$50,000 thousand** financial support from non-executive director Mr. Zhang Mingqi and the derecognition of certain subsidiary liabilities, the Group will have sufficient working capital to continue as a going concern[15](index=15&type=chunk) - Despite these plans, the outcome of management's efforts to address significant doubts about the going concern ability remains uncertain, thus a material uncertainty exists regarding the Group's ability to continue as a going concern in the foreseeable future[16](index=16&type=chunk) [2. Principal Accounting Policies](index=9&type=section&id=2.%20Principal%20Accounting%20Policies) This section details the accounting policies applied in the condensed consolidated financial statements, including the adoption of new and revised HKFRSs - The condensed consolidated financial statements are prepared on a historical cost basis, using the same accounting policies and methods of computation as the 2023 annual financial statements, except for the application of certain revised Hong Kong Financial Reporting Standards[17](index=17&type=chunk) - Several revised Hong Kong Financial Reporting Standards were first applied in this interim period, including lease liabilities in sale and leaseback transactions and classification of liabilities as current or non-current, but had no significant impact on financial position or performance[18](index=18&type=chunk) - New and revised Hong Kong Financial Reporting Standards that have been issued but are not yet effective are listed, and are not expected to have a significant impact on the Group's current and prior period financial position, performance, and/or disclosures[19](index=19&type=chunk) [3. Revenue](index=11&type=section&id=3.%20Revenue) This section provides a breakdown of revenue by source, sales channel, and timing of recognition for the reporting periods Disaggregation of Revenue from Contracts with Customers | Revenue Source | June 30, 2024 (HK$ thousand) | June 30, 2023 (HK$ thousand) | | :--- | :--- | :--- | | Footwear products | 72,309 | 100,660 | | Health products | — | — | | Financial services | — | 3,369 | | Online medical services | — | 102 | | **Total** | **72,309** | **104,131** | Sales Channels | Sales Channel | June 30, 2024 (HK$ thousand) | June 30, 2023 (HK$ thousand) | | :--- | :--- | :--- | | Retail | 70,281 | 98,466 | | Wholesale | 2,028 | 2,194 | | Internet | — | 102 | | Corporate | — | 3,369 | | **Total** | **72,309** | **104,131** | Timing of Revenue Recognition | Timing of Recognition | June 30, 2024 (HK$ thousand) | June 30, 2023 (HK$ thousand) | | :--- | :--- | :--- | | At a point in time | 72,309 | 100,660 | | Over time | — | 3,471 | | **Total** | **72,309** | **104,131** | [4. Operating Segments](index=12&type=section&id=4.%20Operating%20Segments) This section presents financial information segmented by business activities and geographical regions, detailing external sales and segment results - The Group's reportable segments include trading of footwear products, trading of health products, financial services, and online medical services[25](index=25&type=chunk) Segment Revenue and Results for the Six Months Ended June 30, 2024 | Segment | External Sales (HK$ thousand) | Segment Results (HK$ thousand) | | :--- | :--- | :--- | | Trading of footwear products | 72,309 | 2,428 | | Trading of health products | — | — | | Financial services | — | — | | Online medical services | — | — | | **Total segments** | **72,309** | **2,428** | | Unallocated income | | 584 | | Unallocated expenses | | (8,142) | | **Loss before tax** | | **(5,130)** | Segment Revenue and Results for the Six Months Ended June 30, 2023 | Segment | External Sales (HK$ thousand) | Segment Results (HK$ thousand) | | :--- | :--- | :--- | | Trading of footwear products | 100,660 | (1,254) | | Trading of health products | — | (697) | | Financial services | 3,369 | 360 | | Online medical services | 102 | (4,457) | | **Total segments** | **104,131** | **(6,048)** | | Unallocated income | | 978 | | Unallocated expenses | | (9,220) | | **Loss before tax** | | **(14,290)** | Geographical Information | Region | June 30, 2024 (HK$ thousand) | June 30, 2023 (HK$ thousand) | | :--- | :--- | :--- | | Hong Kong | 64,592 | 95,061 | | Australia | — | — | | Macau | 7,717 | 8,968 | | Mainland China | — | 102 | | **Total** | **72,309** | **104,131** | [5. Other Gains and Losses](index=13&type=section&id=5.%20Other%20Gains%20and%20Losses) This section details the components of other gains and losses, including net exchange gains/losses and loss on deconsolidation of a subsidiary Other Gains and Losses | Item | June 30, 2024 (HK$ thousand) | June 30, 2023 (HK$ thousand) | | :--- | :--- | :--- | | Net exchange (gain) / loss | 7 | (961) | | Loss on deconsolidation of a subsidiary | (5,554) | — | | Gain on disposal of property, plant and equipment | 8 | — | | **Total** | **(5,539)** | **(961)** | [6. Loss Before Tax](index=14&type=section&id=6.%20Loss%20Before%20Tax) This section itemizes expenses and income deducted from or credited to loss before tax, such as depreciation and staff costs Items Deducted From / (Credited to) Loss Before Tax | Item | June 30, 2024 (HK$ thousand) | June 30, 2023 (HK$ thousand) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 8,033 | 6,042 | | Premiums for life insurance policies | 15 | 13 | | Staff costs, including directors' emoluments | 21,608 | 39,130 | | Reversal of provision for inventories (credited to cost of sales) | (10,520) | (13,177) | | Cost of inventories recognised as an expense (including net reversal of provision for inventories) | 16,912 | 18,898 | [7. Taxation](index=14&type=section&id=7.%20Taxation) This section explains the tax treatment across different jurisdictions, noting no tax provision due to tax losses or lack of taxable profits - The Company, incorporated in the Cayman Islands, along with Group entities incorporated in the British Virgin Islands, had no taxable profits in either period[30](index=30&type=chunk) - Hong Kong profits tax is calculated under a two-tiered profits tax rate regime, but no provision for Hong Kong profits tax was made as the Group's carried forward tax losses were sufficient to offset estimated taxable profits for the current year[31](index=31&type=chunk) - No provision was made for Macau complementary tax, Taiwan income tax, and PRC enterprise income tax as the relevant entities had no taxable profits in either period[31](index=31&type=chunk)[32](index=32&type=chunk) [8. Dividends](index=15&type=section&id=8.%20Dividends) This section confirms that no dividends were paid, declared, or proposed during the interim period - No dividends were paid, declared, or proposed during the interim period, and the Board decided not to pay dividends for the interim period[33](index=33&type=chunk) [9. Loss Per Share](index=15&type=section&id=9.%20Loss%20Per%20Share) This section details the calculation of basic and diluted loss per share based on the loss attributable to owners and weighted average shares Loss Per Share Calculation | Metric | June 30, 2024 | June 30, 2023 | | :--- | :--- | :--- | | Loss for the period attributable to owners of the Company (HK$ thousand) | 5,130 | 12,327 | | Weighted average number of ordinary shares (thousand shares) | 242,845 | 242,845 | | **Basic and diluted loss per share (HK$)** | **(0.02)** | **(0.05)** | [10. Trade and Other Receivables](index=16&type=section&id=10.%20Trade%20and%20Other%20Receivables) This section outlines credit terms for sales and provides an aging analysis of trade receivables - Credit terms for retail sales of footwear products range from **30 to 60 days**, while for wholesale footwear products, trading of health products, and financial services, credit terms range from **30 to 90 days**[35](index=35&type=chunk) Aging Analysis of Trade Receivables | Aging | June 30, 2024 (HK$ thousand) | December 31, 2023 (HK$ thousand) | | :--- | :--- | :--- | | Within 30 days | 2,734 | 8,398 | | 31 to 60 days | 1,239 | 196 | | 61 to 90 days | — | 210 | | Over 90 days | 70 | — | | **Total** | **4,043** | **8,804** | [11. Trade and Other Payables](index=16&type=section&id=11.%20Trade%20and%20Other%20Payables) This section specifies the average credit period for trade payables and presents their aging analysis - The average credit period for trade payables is **30 days**[36](index=36&type=chunk) Aging Analysis of Trade Payables | Aging | June 30, 2024 (HK$ thousand) | December 31, 2023 (HK$ thousand) | | :--- | :--- | :--- | | Within 30 days | 1,709 | 2,769 | | 31 to 60 days | — | 215 | | 61 to 90 days | — | — | | Over 90 days | 1,700 | 1,677 | | **Total** | **3,409** | **4,661** | [12. Events After the Reporting Period](index=17&type=section&id=12.%20Events%20After%20the%20Reporting%20Period) This section details significant events occurring after the reporting period, including subsidiary bankruptcy liquidation and disposal agreements - Shang Ying Medical's bankruptcy liquidation application was accepted on April 29, 2024, and a liquidator was appointed on May 6, leading to the Company losing control over its assets and operations[37](index=37&type=chunk) - The Group completed the disposal of its subsidiary, Shang Ying International Group, to an independent third party in April 2025[37](index=37&type=chunk) - The Group entered into a sale and purchase agreement with an independent third party in September 2025 for the disposal of its subsidiary, Shang Ying Retail Group, which remains uncompleted as of the announcement date[38](index=38&type=chunk) - The Group entered into a sale and purchase agreement with an independent third party in September 2025 for the disposal of Shang Ying Capital Group, which remains uncompleted as of the announcement date[39](index=39&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews business performance and financial condition, noting declining footwear revenue and stagnant other services, outlining future strategies and challenges including going concern and foreign exchange risk [Business Review and Future Developments](index=18&type=section&id=Business%20Review%20and%20Future%20Developments) This section reviews the performance of various business segments, highlighting the decline in footwear revenue and stagnation in other services, along with future strategic focuses - During the reporting period, the footwear business accounted for **100%** of the Company's revenue, while health products and online medical services businesses remained stagnant[40](index=40&type=chunk) - Footwear business revenue was approximately **HK$72,300 thousand**, a **28.2% decrease** from the same period last year, primarily due to weak consumer sentiment and ongoing economic uncertainty[41](index=41&type=chunk) - Health products business segment revenue was **zero**, mainly due to business stagnation[42](index=42&type=chunk) - Financial services business revenue was **zero**, primarily due to business stagnation, and DSG Securities (Hong Kong) Limited has applied to reduce its Type 1 regulated activity[43](index=43&type=chunk) - Online medical services business revenue was **zero**, mainly due to business stagnation and Shang Ying Medical entering bankruptcy proceedings[44](index=44&type=chunk) - Moving forward, the company will focus more on diversifying footwear products, exploring potential business collaborations, and introducing new brands with growth potential and high gross margins; DSG Group will continue to focus on developing its financing advisory business and exploring new market opportunities, such as Singapore[45](index=45&type=chunk) [Financial Review](index=19&type=section&id=Financial%20Review) This section provides a detailed financial overview, including revenue, cost of sales, gross profit, and key expense items, noting a narrowed loss before tax - The Group's revenue for the reporting period was approximately **HK$72,300 thousand**, a decrease of approximately **30.6%** compared to the same period last year, mainly due to reduced footwear business revenue[46](index=46&type=chunk) - Footwear business revenue was approximately **HK$72,300 thousand**, a **28.2% decrease** from the same period last year, with Hong Kong retail points decreasing to **27** and Macau increasing to **3**[47](index=47&type=chunk) - Revenue from health products business, financial services business, and online medical services business was **zero**, primarily due to business stagnation[48](index=48&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk) - Cost of sales was approximately **HK$16,900 thousand**, accounting for approximately **23.4%** of revenue, a decrease from the same period last year, mainly due to reduced footwear product revenue[51](index=51&type=chunk) - Gross profit was approximately **HK$55,400 thousand**, a decrease of approximately **35.0%** from the same period last year; gross profit margin was approximately **76.6%**, a decrease[52](index=52&type=chunk) - Staff costs were approximately **HK$21,600 thousand**, accounting for approximately **29.9%** of revenue, a decrease from the same period last year[53](index=53&type=chunk) - Depreciation accounted for approximately **11.1%** of revenue, an increase from approximately **5.8%** in the same period last year[54](index=54&type=chunk) - Finance costs were approximately **HK$1,200 thousand**, primarily comprising interest expenses arising from lease liabilities[55](index=55&type=chunk) - Loss before tax was approximately **HK$5,100 thousand**, a significant narrowing from approximately **HK$14,300 thousand** in the same period last year[56](index=56&type=chunk) [Liquidity and Financial Resources](index=21&type=section&id=Liquidity%20and%20Financial%20Resources) This section discusses the company's funding sources, including internal cash flow, bank borrowings, and shareholder support, along with cash and short-term liabilities - The Group funds its operations with internally generated cash flow, bank borrowings, and financial support from the Company's shareholders[57](index=57&type=chunk) - As at June 30, 2024, bank balances and cash were approximately **HK$38,100 thousand**, a decrease of approximately **4.8%** from December 31, 2023. Short-term other borrowings were approximately **HK$15,000 thousand**, and long-term lease liabilities were approximately **HK$11,200 thousand**[57](index=57&type=chunk) [Pledge of Assets](index=21&type=section&id=Pledge%20of%20Assets) This section identifies specific assets pledged as collateral for bank borrowings and financing facilities - As at June 30, 2024, investment properties, land and buildings, deposits and prepayments for life insurance policies, pledged time deposits, and land and buildings of related companies were pledged to secure bank borrowings and banking facilities granted to the Group[58](index=58&type=chunk) [Gearing Ratio](index=22&type=section&id=Gearing%20Ratio) This section presents the gearing ratio and explains its significant increase due to the reported loss Gearing Ratio | Metric | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Gearing ratio (total liabilities divided by total equity) | 237.8% | -92.8% | - The gearing ratio increased significantly, primarily due to the Group recording a loss during the reporting period[59](index=59&type=chunk) [Material Investments Held, Material Acquisitions or Disposals of Subsidiaries, Associates and Joint Ventures](index=22&type=section&id=Material%20Investments%20Held%2C%20Material%20Acquisitions%20or%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) This section confirms the absence of material investments or significant acquisitions/disposals of subsidiaries, associates, or joint ventures during the reporting period - During the reporting period, the Group held no material investments, nor were there any material acquisitions or disposals of subsidiaries, associates, and joint ventures[60](index=60&type=chunk) [Treasury Policy](index=22&type=section&id=Treasury%20Policy) This section outlines the group's treasury policy aimed at controlling operations, reducing borrowing costs, and maintaining adequate cash levels - The Group's adopted treasury policy aims to improve control over its treasury operations and reduce borrowing costs, striving to maintain adequate levels of cash and cash equivalents[61](index=61&type=chunk) - The Board will consider various funding sources based on the Group's capital requirements to ensure financial resources are utilized in the most cost-effective and efficient manner, and will review and evaluate the treasury policy periodically[61](index=61&type=chunk) [Announcements Made Pursuant to Rule 3.7 of the Takeovers Code](index=22&type=section&id=Announcements%20Made%20Pursuant%20to%20Rule%203.7%20of%20the%20Takeovers%20Code) This section details announcements regarding the appointment of receivers over pledged shares and the subsequent cessation of their appointment - On May 7, 2020, the Company received a letter regarding the appointment of joint and several receivers and managers over **123,993,617 shares** of the Company (representing approximately **51.06%** of the issued shares) held by Shang Ying Financial Holdings Limited, and the receivers may seek potential buyers for the pledged shares[62](index=62&type=chunk) - According to the monthly update announcement on July 22, 2025, the receivers ceased to be joint and several receivers and managers of the pledged shares effective June 2, 2025, and the offer period ended on the same day, as the Company believed an offer for the pledged shares was unlikely to materialize soon[63](index=63&type=chunk) [Foreign Exchange Risk](index=23&type=section&id=Foreign%20Exchange%20Risk) This section discusses the group's exposure to foreign exchange fluctuations from sales and purchases denominated in various currencies - The Group's sales and purchases during the reporting period were largely denominated in HK$, RMB, MOP, SGD, EUR, USD, and AUD, exposing it to foreign exchange fluctuation risks[64](index=64&type=chunk) - RMB is not freely convertible, and the MOP currency market is relatively small and undeveloped, with future exchange rates potentially influenced by government control, economic developments, and geopolitical changes[64](index=64&type=chunk) - The Group manages its foreign currency risk by closely monitoring foreign currency exchange rate movements and had not entered into any foreign currency forward contracts to hedge foreign currency risk as at June 30, 2024[64](index=64&type=chunk) [Human Resources](index=23&type=section&id=Human%20Resources) This section provides information on employee numbers, remuneration policies, and staff training initiatives - As at June 30, 2024, the Group employed **114 employees**, a decrease from **130 employees** as at December 31, 2023[65](index=65&type=chunk) - Remuneration packages are generally determined by reference to current market terms, individual qualifications, and experience, with various training activities conducted to enhance staff performance[65](index=65&type=chunk) [Dividends](index=23&type=section&id=Dividends) This section reiterates the board's decision not to declare an interim dividend for the reporting period - The Board has resolved not to declare an interim dividend for the reporting period[66](index=66&type=chunk) [Purchase, Sale and Redemption of the Company’s Listed Securities](index=23&type=section&id=Purchase%2C%20Sale%20and%20Redemption%20of%20the%20Company%E2%80%99s%20Listed%20Securities) This section confirms that neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities during the reporting period - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the reporting period, nor did they hold any treasury shares[67](index=67&type=chunk) [Other Information](index=24&type=section&id=Other%20Information) This section covers corporate governance, directors' securities trading compliance, audit committee duties, post-reporting events, publication details, and the continued suspension of share trading [Corporate Governance](index=24&type=section&id=Corporate%20Governance) This section confirms the board's review and compliance with the Corporate Governance Code during the reporting period - The Board has reviewed the Company's corporate governance practices and is satisfied that the Company has complied with the code provisions in Part 2 of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules throughout the reporting period[68](index=68&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors](index=24&type=section&id=Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) This section confirms that all directors have complied with the Model Code for Securities Transactions by Directors of Listed Issuers - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules, and after specific enquiry with the directors, each confirmed compliance with the required standards throughout the reporting period[69](index=69&type=chunk) [Audit Committee](index=24&type=section&id=Audit%20Committee) This section describes the Audit Committee's review of accounting policies, risk management, internal controls, and financial reporting for the period - The Company's Audit Committee, comprising three independent non-executive directors, has reviewed the Group's principal accounting policies adopted with management and discussed risk management, internal control systems, and financial reporting matters, including the unaudited consolidated financial statements for this reporting period[70](index=70&type=chunk) [Material Events After the Reporting Period](index=24&type=section&id=Material%20Events%20After%20the%20Reporting%20Period) This section confirms no other material events occurred after the reporting period, beyond those disclosed in the notes to the financial statements - Save for the matters disclosed in Note 12 to the consolidated financial statements and above in this announcement, there were no other material events concerning the Group after the reporting period[71](index=71&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=24&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This section provides information on the publication of the interim results announcement and the upcoming interim report - This interim results announcement of the Company has been published on the website of the Stock Exchange and the Company's website. The Company's 2023 interim report will be despatched to the Company's shareholders and published on the aforementioned websites in due course[72](index=72&type=chunk) [Acknowledgement](index=24&type=section&id=Acknowledgement) This section expresses gratitude to the management, staff, shareholders, business partners, banks, and auditors for their support - The Board would like to express its gratitude to the Group's management and all staff for their tireless efforts and dedication, and also to its shareholders, business partners, collaborators, bankers, and auditors for their strong support to the Group[73](index=73&type=chunk) [Continued Suspension of Trading](index=25&type=section&id=Continued%20Suspension%20of%20Trading) This section informs shareholders and potential investors about the continued suspension of trading in the company's shares until resumption guidance is met - At the Company's request, trading in the Company's shares on the Stock Exchange was suspended from 9:00 a.m. on April 2, 2024, and will remain suspended until the resumption guidance is met[74](index=74&type=chunk) - Shareholders and potential investors of the Company are advised to exercise caution when dealing in the Company's securities[75](index=75&type=chunk)

I. [Company Information](index=2&type=section&id=I.%20Company%20Information) This section provides basic company information, including registered office, principal places of business, website, stock code, and recent changes in board members [Basic Company Information](index=3&type=section&id=Basic%20Company%20Information) This section provides fundamental details such as the company's registered office, principal places of business, website, stock code, and recent changes in board members - The company's registered office is in Hong Kong, with principal places of business in Zambia and the Democratic Republic of Congo[4](index=4&type=chunk) - Stock code is **01258**[4](index=4&type=chunk) - Mr. Xiao Bo was appointed Executive Director and Chairman from March 27, 2025, while Mr. Yang He resigned as Chairman on the same day[4](index=4&type=chunk) - Mr. Sun Yufeng was appointed Independent Non-executive Director on March 21, 2025, with Mr. Qiu Dingfan resigning on the same day[4](index=4&type=chunk) [Board Committees and Professional Service Providers](index=4&type=section&id=Board%20Committees%20and%20Professional%20Service%20Providers) This section details the composition and changes in chairpersons for the Audit, Nomination, Remuneration, and Compliance Committees, along with information on joint company secretaries, legal advisors, auditors, and the Hong Kong share registrar - The Audit Committee Chairman is Mr. Gao Guangfu, Nomination Committee Chairman is Mr. Sun Yufeng (appointed March 21, 2025), Remuneration Committee Chairman is Mr. Guan Huanfei, and Compliance Committee Chairman is Mr. Xiao Bo (effective March 27, 2025)[6](index=6&type=chunk) - Joint Company Secretaries are Mr. Chu Chiu Yeung and Ms. Wong Man Yee[6](index=6&type=chunk) - Auditor is **KPMG**[7](index=7&type=chunk) II. [Chairman's Statement](index=5&type=section&id=II.%20Chairman's%20Statement) Chairman Mr. Xiao Bo reviews the Group's strong operating performance in H1 2025 amidst a complex external environment, highlighting high-quality development, technological innovation, and M&A breakthroughs, while anticipating severe challenges in H2 and affirming commitment to capacity expansion and new project construction - In H1 2025, the Group achieved a total profit of **$533 million**, a **23.1% year-on-year increase**, and net profit attributable to owners of **$263 million**, a **20.2% year-on-year increase**[13](index=13&type=chunk) - Self-owned mines produced **85,200 tonnes of copper**, a **7.2% year-on-year increase**, with all major mining enterprises achieving production growth[13](index=13&type=chunk) - Successfully acquired a partial equity stake in the Benkala Copper Mine in Kazakhstan, expanding the resource footprint to Central Asia[13](index=13&type=chunk) - H2 faces multiple challenges including Western economic uncertainty, geopolitical tensions, trade protectionism, suspension of operations at Chambishi Southeast Orebody, and declining pyrometallurgical processing fees[15](index=15&type=chunk) - Will advance construction of CNMC Luanshya New Mine and Chambishi MSESA project, strive to achieve controlling interest in Kazakhstan Benkala project within the year, and accelerate the establishment of captive power plants to alleviate power shortages[15](index=15&type=chunk) III. [Performance Highlights](index=8&type=section&id=III.%20Performance%20Highlights) In H1 2025, China Nonferrous Mining Corporation Limited's revenue decreased by 12.9% year-on-year, but profit attributable to owners increased by 20.2%, with varied product output showing a decline in blister and anode copper but significant growth in cathode copper and tolling services H1 2025 Operating Performance Overview | Indicator | H1 2025 (Million USD) | Year-on-Year Change (%) | | :--- | :--- | :--- | | Revenue | 1,751.5 | (12.9) | | Profit Attributable to Owners | 263.3 | 20.2 | H1 2025 Key Product Output Changes | Product | H1 2025 (Tonnes) | Year-on-Year Increase/(Decrease) (%) | | :--- | :--- | :--- | | Blister and Anode Copper | 111,283 | (30.4) | | Cathode Copper | 72,192 | 15.6 | | Cobalt in Cobalt Hydroxide | 481 | 1.7 | | Sulfuric Acid | 538,433 | (1.9) | | Liquid Sulfur Dioxide | 1,466 | (85.5) | | Copper Product Processing Services | 102,708 | 152.9 | - Self-owned mines produced **42,053 tonnes of blister and anode copper** and **43,153 tonnes of cathode copper**, totaling **85,206 tonnes**, a year-on-year increase[38](index=38&type=chunk) IV. [Management Discussion and Analysis](index=9&type=section&id=IV.%20Management%20Discussion%20and%20Analysis) This section provides an in-depth analysis of the Group's H1 2025 operating and financial performance, detailing subsidiary production, exploration progress, project developments, financial data, liquidity, capital expenditure, market risks, asset pledges, contingent liabilities, and post-balance sheet events - H1 2025 revenue was **$1,751.5 million**, a **12.9% year-on-year decrease**, primarily due to increased processing of blister and anode copper for external entities and decreased sales of self-produced copper products[62](index=62&type=chunk) - Gross profit was **$570.3 million**, an **11.4% year-on-year increase**; gross margin increased from **25.5% in H1 2024 to 32.6% in H1 2025**, mainly due to a reduced proportion of lower-margin blister and anode copper production and an increased proportion of higher-margin tolling services[65](index=65&type=chunk) - Profit attributable to owners was **$263.3 million**, a **20.2% year-on-year increase**[73](index=73&type=chunk) - Net cash generated from operating activities was **$525.9 million**, an increase of **$112.8 million** year-on-year, primarily due to increased net profit[74](index=74&type=chunk) - Net cash used in investing activities was **$151.2 million**, a shift from a net inflow of **$26.8 million** in the prior period, mainly due to a year-on-year decrease in transfers from time deposits to current accounts and funds placed with CNMC Treasury Management (Hong Kong) Limited[75](index=75&type=chunk) - Net cash used in financing activities was **$42.1 million**, a shift from a net inflow of **$94.9 million** in the prior period, mainly due to proceeds from share issuance in the prior period and no new external borrowings in the current period[76](index=76&type=chunk) - Total capital expenditure was **$108.4 million**, an increase of **$62.4 million** year-on-year, primarily due to increased capital expenditure at Chambishi Southeast Mine, CNMC Luanshya New Mine Project, Baluba Open Pit Mine, and Chambishi Mining[83](index=83&type=chunk) [Overview](index=10&type=section&id=Overview) In H1 2025, the Group's operating performance improved year-on-year, driven by rising international copper prices, increased production and sales of self-owned blister and anode copper, and growth in cathode copper output - During the reporting period, revenue was **$1,751.5 million**, a **12.9% year-on-year decrease**[23](index=23&type=chunk) - Profit attributable to owners was **$263.3 million**, a **20.2% year-on-year increase**[23](index=23&type=chunk) [Business Review](index=10&type=section&id=Business%20Review) The Group, a vertically integrated copper producer, operates copper-cobalt mining, beneficiation, smelting, and sales in Zambia and DRC, with H1 seeing a decline in blister and anode copper output but significant growth in cathode copper and tolling services, alongside ongoing exploration and infrastructure development - The Group primarily engages in copper and cobalt mining, beneficiation, hydrometallurgy, pyrometallurgy, and sales in Zambia and the Democratic Republic of Congo[24](index=24&type=chunk) H1 2025 Key Product Output and Year-on-Year Changes | Product | H1 2025 (Tonnes) | H1 2024 (Tonnes) | Year-on-Year Increase/(Decrease) (%) | | :--- | :--- | :--- | :--- | | Blister and Anode Copper | 111,283 | 159,971 | (30.4) | | Cathode Copper | 72,192 | 62,450 | 15.6 | | Cobalt in Cobalt Hydroxide | 481 | 473 | 1.7 | | Sulfuric Acid | 538,433 | 548,699 | (1.9) | | Liquid Sulfur Dioxide | 1,466 | 10,115 | (85.5) | | Copper Product Processing Services | 102,708 | 40,615 | 152.9 | - Total copper output from self-owned mines was **85,206 tonnes**, a year-on-year increase[38](index=38&type=chunk) [Production Overview](index=11&type=section&id=Production%20Overview) Subsidiary production varied: CNMC Mining Africa's anode copper output grew 21.0%; CNMC Luanshya saw increases in both cathode and anode copper; Chambishi Copper Smelter's blister and anode copper rose 4.9% with significant tolling contributions; Chambishi Wet Process Smelter's output sharply declined due to shutdown for repairs; CNMC Huaxin Mabende and CNMC Huaxin Wet Process saw substantial growth in cathode copper and cobalt hydroxide due to improved power supply; Luanshya Copper Smelter's blister copper increased 12.1% but liquid sulfur dioxide dropped sharply due to export restrictions; Chambishi Mining's cathode copper grew 3.6% but cobalt hydroxide decreased due to policy adjustments - CNMC Mining Africa's anode copper output was **38,743 tonnes**, a **21.0% year-on-year increase**, mainly due to continuous production in H1[26](index=26&type=chunk) - Chambishi Wet Process Smelter's cathode copper output was **755 tonnes**, a **73.3% year-on-year decrease**, primarily due to temporary shutdown for full-scale repair measures[30](index=30&type=chunk) - CNMC Huaxin Mabende's cathode copper output was **15,603 tonnes**, an **85.0% year-on-year increase**; CNMC Huaxin Wet Process's cathode copper output was **12,973 tonnes**, a **25.8% year-on-year increase**, and cobalt in cobalt hydroxide output was **221 tonnes**, a **194.7% year-on-year increase**, mainly benefiting from the commissioning of generators and photovoltaics, improving power supply[32](index=32&type=chunk) - Luanshya Copper Smelter's blister copper output was **73,451 tonnes**, a **12.1% year-on-year increase**, mainly due to normal production and sufficient raw material supply; liquid sulfur dioxide output was **1,466 tonnes**, an **85.5% year-on-year decrease**, primarily due to DRC's restrictions on cobalt product exports[33](index=33&type=chunk) - Chambishi Mining's cathode copper output was **19,181 tonnes**, a **3.6% year-on-year increase**; cobalt in cobalt hydroxide output was **260 tonnes**, a **34.7% year-on-year decrease**, due to adjustments in cobalt production mode to cope with export restrictions[34](index=34&type=chunk) [The Group's Exploration, Development and Mining Expenses](index=14&type=section&id=The%20Group's%20Exploration,%20Development%20and%20Mining%20Expenses) In H1 2025, the Group invested $6.35 million in exploration activities, $72.23 million in development activities, and $203.80 million in mining activities (excluding beneficiation) H1 2025 Exploration, Development and Mining Expenses (Million USD) | Activity Type | Amount (Million USD) | | :--- | :--- | | Exploration Activities | 6.35 | | Development Activities (including mine construction) | 72.23 | | Mining Activities (excluding beneficiation) | 203.80 | [Mineral Exploration, Mining Development and Ore Mining Activities](index=16&type=section&id=Mineral%20Exploration,%20Mining%20Development%20and%20Ore%20Mining%20Activities) Group subsidiaries continue mineral exploration, with CNMC Mining Africa and CNMC Luanshya completing extensive drilling and tunneling; in mining development, CNMC Luanshya New Mine project's dewatering progresses well, while Chambishi Mining's MSESA and West Orebody development projects are in preliminary study phases - CNMC Mining Africa completed **13,676.8 meters** of underground exploration drilling and **3,974.2 meters** of surface exploration drilling[43](index=43&type=chunk) - CNMC Luanshya New Mine project has an estimated total investment of **$513.0 million**, with **$23.6 million** invested in H1, cumulative dewatering of **68.09 million cubic meters**, completing **74%** of total dewatering[44](index=44&type=chunk) - Chambishi Mining's MSESA Orebody Development Phase I project has a planned total investment of **$22.0 million**, and West Orebody Development Phase I project has a planned total investment of **$85.8 million**, both for beneficiation and metallurgical test research and feasibility study report preparation[45](index=45&type=chunk) [Infrastructure Projects, Subcontracting Arrangements and Equipment Purchases](index=17&type=section&id=Infrastructure%20Projects,%20Subcontracting%20Arrangements%20and%20Equipment%20Purchases) During the reporting period, the Group signed new contracts totaling $106.5 million, with capital commitments of $71.7 million, primarily for equipment procurement and engineering construction, and no subcontracting arrangements occurred - New contracts totaled **$106.5 million**, with related capital commitments of **$71.7 million**[47](index=47&type=chunk) - Major contracts include CNMC Mining Africa's trackless equipment procurement, CNMC Huaxin Mabende's diesel generator set procurement, CNMC Luanshya New Mine engineering construction, and CNMC Mining Africa Southeast Orebody TBM project general contracting framework agreement[49](index=49&type=chunk) [Progress of Projects Under Construction](index=17&type=section&id=Progress%20of%20Projects%20Under%20Construction) Multiple projects are advancing: CNMC Mining Africa's Southeast Orebody TBM project may be delayed due to geological issues, and main and auxiliary shaft curtain grouting for water control is suspended due to shaft wall damage; the main west concentrator renovation project progresses smoothly. Chambishi Copper Smelter's slag beneficiation expansion, oxygen production system, and environmental treatment projects are all progressing. CNMC Luanshya New Mine's dewatering is on schedule. Luanshya Copper Smelter's slag flotation project is operational, and diesel power station expansion is nearing completion. Chambishi Mining's West Orebody, MSESA Orebody resource development, and wet plant optimization projects are in preliminary work and construction - CNMC Mining Africa Southeast Orebody TBM construction project encountered adverse geological bodies, potentially leading to route adjustments and a completion delay until **Q2 2029**[48](index=48&type=chunk) - CNMC Mining Africa's main and auxiliary shaft curtain grouting for water control was suspended due to shaft wall damage[51](index=51&type=chunk) - Chambishi Copper Smelter's slag beneficiation expansion, VPSA oxygen production system, and smelter flue gas environmental treatment projects all made progress, with **millions of USD** paid in H1[52](index=52&type=chunk) - CNMC Luanshya New Mine project's dewatering work is progressing smoothly, with cumulative dewatering accounting for **74%** of the total water volume[53](index=53&type=chunk) - Luanshya Copper Smelter's slag flotation project was completed and commissioned in **January 2025**; the slag slow cooling yard expansion and supporting plant project is expected to be delivered for production by **November 30, 2025**[54](index=54&type=chunk) - Chambishi Mining's wet plant overall optimization and tailings system expansion and renovation project commenced construction in **December 2024**, with completion expected by **December 30, 2025**[57](index=57&type=chunk) [Financial Review](index=21&type=section&id=Financial%20Review) This section analyzes the Group's H1 2025 financial performance, noting a decline in total revenue but significant improvements in gross profit and margin, and increased profit attributable to owners. Liquidity saw a substantial increase in operating cash flow but a shift to net outflows from investing and financing activities. Capital expenditure rose significantly, mainly for mine and smelter expansion and new projects - H1 2025 revenue was **$1,751.5 million**, a **12.9% year-on-year decrease**, primarily due to increased processing of blister and anode copper for external entities and decreased sales of self-produced copper products[62](index=62&type=chunk) - Gross profit was **$570.3 million**, an **11.4% year-on-year increase**; gross margin increased from **25.5% in H1 2024 to 32.6% in H1 2025**, mainly due to a reduced proportion of lower-margin blister and anode copper production and an increased proportion of higher-margin tolling services[65](index=65&type=chunk) - Profit attributable to owners was **$263.3 million**, a **20.2% year-on-year increase**[73](index=73&type=chunk) - Net cash generated from operating activities was **$525.9 million**, an increase of **$112.8 million** year-on-year, primarily due to increased net profit[74](index=74&type=chunk) - Net cash used in investing activities was **$151.2 million**, a shift from a net inflow of **$26.8 million** in the prior period, mainly due to a year-on-year decrease in transfers from time deposits to current accounts and funds placed with CNMC Treasury Management (Hong Kong) Limited[75](index=75&type=chunk) - Net cash used in financing activities was **$42.1 million**, a shift from a net inflow of **$94.9 million** in the prior period, mainly due to proceeds from share issuance in the prior period and no new external borrowings in the current period[76](index=76&type=chunk) - Total capital expenditure was **$108.4 million**, an increase of **$62.4 million** year-on-year, primarily due to increased capital expenditure at Chambishi Southeast Mine, CNMC Luanshya New Mine Project, Baluba Open Pit Mine, and Chambishi Mining[83](index=83&type=chunk) [Operating Results](index=21&type=section&id=Operating%20Results_Financial) This section outlines the Group's sales volume, average selling price, revenue, and percentage contribution to total revenue for key products and services, indicating a decreased revenue contribution from blister and anode copper but an increased contribution from cathode copper and copper product processing services H1 2025 Product and Service Sales Data | Product/Service | Sales Volume (Tonnes) | Average Selling Price (USD/Tonne) | Revenue (Thousand USD) | Percentage of Total Revenue (%) | | :--- | :--- | :--- | :--- | :--- | | Blister and Anode Copper | 109,308 | 8,776 | 959,277 | 54.8 | | Cathode Copper | 70,525 | 8,673 | 611,635 | 34.9 | | Sulfuric Acid | 387,982 | 225 | 87,259 | 5.0 | | Liquid Sulfur Dioxide | 990 | 686 | 680 | 0.1 | | Cobalt in Cobalt Hydroxide | – | – | – | – | | Copper Product Processing Services | 102,479 | 904 | 92,682 | 5.2 | | **Total** | **671,284** | | **1,751,533** | **100.0** | [Revenue](index=22&type=section&id=Revenue_Financial) Total revenue in H1 2025 decreased by 12.9% year-on-year, mainly due to reduced sales of self-produced blister and anode copper to mitigate VAT refund and exchange rate risks, partially offset by increased cathode copper sales, rising international copper prices, and higher average selling prices for sulfuric acid - Total revenue was **$1,751.5 million**, a **12.9% year-on-year decrease**, primarily due to increased processing of blister and anode copper for external entities and decreased sales of self-produced copper products[62](index=62&type=chunk) - Revenue from blister and anode copper sales decreased by **29.5% to $959.3 million**, due to reduced self-production and sales to control capital occupation and exchange rate risks[62](index=62&type=chunk) - Revenue from cathode copper sales increased by **18.3% to $611.6 million**, mainly influenced by increased production and sales volume and rising international copper prices[62](index=62&type=chunk) - Revenue from sulfuric acid sales increased by **4.7% to $87.3 million**, primarily due to an increase in average selling price[62](index=62&type=chunk) [Cost of Sales](index=22&type=section&id=Cost%20of%20Sales) In H1 2025, cost of sales decreased by 21.1% year-on-year to $1,181.3 million, primarily reflecting a decline in sales volume of self-produced copper products, with a significant reduction in blister and anode copper cost of sales, while cathode copper cost of sales increased due to higher sales volume - Cost of sales was **$1,181.3 million**, a **21.1% year-on-year decrease**, primarily due to increased processing of blister and anode copper for external entities and decreased sales of self-produced copper products[64](index=64&type=chunk) - Cost of sales for blister and anode copper decreased by **32.2% to $778.5 million**[64](index=64&type=chunk) - Cost of sales for cathode copper increased by **17.2% to $331.4 million**, primarily due to a year-on-year increase in sales volume[64](index=64&type=chunk) [Gross Profit and Gross Margin](index=23&type=section&id=Gross%20Profit%20and%20Gross%20Margin) In H1 2025, gross profit increased by 11.4% to $570.3 million, and the gross margin improved from 25.5% to 32.6%, primarily due to a reduced proportion of lower-margin blister and anode copper business and an increased proportion of higher-margin tolling services - Gross profit was **$570.3 million**, an **11.4% year-on-year increase**[65](index=65&type=chunk) - Gross margin increased from **25.5% in H1 2024 to 32.6% in H1 2025**[65](index=65&type=chunk) - The improvement in gross margin was primarily attributable to a reduced proportion of lower-margin blister and anode copper production business and an increased proportion of higher-margin tolling services[65](index=65&type=chunk) [Distribution and Selling Expenses](index=23&type=section&id=Distribution%20and%20Selling%20Expenses) In H1 2025, distribution and selling expenses were $4.5 million, an increase of $1.0 million compared to the same period last year - Distribution and selling expenses were **$4.5 million**, a year-on-year increase of **$1.0 million**[66](index=66&type=chunk) [Administrative Expenses](index=23&type=section&id=Administrative%20Expenses) In H1 2025, administrative expenses were $96.1 million, an increase of $12.5 million compared to the same period last year, primarily due to the temporary shutdown and full-scale repair measures at Chambishi Wet Process Smelter - Administrative expenses were **$96.1 million**, a year-on-year increase of **$12.5 million**[67](index=67&type=chunk) - The increase was primarily due to the temporary shutdown and full-scale repair measures at Chambishi Wet Process Smelter[67](index=67&type=chunk) [Finance Costs](index=24&type=section&id=Finance%20Costs) In H1 2025, finance costs were $1.2 million, a significant decrease of $5.1 million compared to the same period last year, primarily due to a substantial reduction in external borrowings - Finance costs were **$1.2 million**, a year-on-year decrease of **$5.1 million**[70](index=70&type=chunk) - The decrease was primarily due to a significant year-on-year reduction in external borrowings[70](index=70&type=chunk) [Other Gains and Losses](index=24&type=section&id=Other%20Gains%20and%20Losses) In H1 2025, net other gains and losses amounted to a gain of $48.7 million, an increase of $45.3 million compared to the same period last year, primarily due to increased foreign exchange gains from the appreciation of the Zambian Kwacha against the US Dollar - Net other gains and losses amounted to a gain of **$48.7 million**, a year-on-year increase of **$45.3 million**[71](index=71&type=chunk) - The increase was primarily due to the appreciation of the Zambian Kwacha against the US Dollar, leading to a year-on-year increase in foreign exchange gains[71](index=71&type=chunk) [Income Tax Expense](index=24&type=section&id=Income%20Tax%20Expense) In H1 2025, income tax expense was $161.2 million, an increase of $32.0 million compared to the same period last year, primarily due to increased profit before tax - Income tax expense was **$161.2 million**, a year-on-year increase of **$32.0 million**[72](index=72&type=chunk) - The increase was primarily due to increased profit before tax[72](index=72&type=chunk) [Profit Attributable to Owners of the Company](index=24&type=section&id=Profit%20Attributable%20to%20Owners%20of%20the%20Company) In H1 2025, profit attributable to owners of the company was $263.3 million, an increase of $44.2 million compared to the same period last year, reflecting an improvement in overall financial performance - Profit attributable to owners of the company was **$263.3 million**, a year-on-year increase of **$44.2 million**[73](index=73&type=chunk) [Liquidity and Capital Resources](index=24&type=section&id=Liquidity%20and%20Capital%20Resources) The Group saw a significant increase in net cash inflow from operating activities, but investing and financing activities shifted to net outflows. Bank balances and cash grew substantially, while trade receivables and payables also increased - Net cash generated from operating activities was **$525.9 million**, a year-on-year increase of **$112.8 million**[74](index=74&type=chunk) - Net cash used in investing activities was **$151.2 million**, a shift from a net inflow in the prior period, primarily due to a year-on-year decrease in transfers from time deposits to current accounts and funds placed with CNMC Treasury Management (Hong Kong) Limited[75](index=75&type=chunk) - Net cash used in financing activities was **$42.1 million**, a shift from a net inflow in the prior period, primarily due to proceeds from share issuance in the prior period and no new external borrowings in the current period[76](index=76&type=chunk) - As at June 30, 2025, bank balances and cash were **$1,353.4 million**, an increase of **$334.7 million** from December 31, 2024[77](index=77&type=chunk) - Total trade receivables were **$344.9 million**, an increase of **$88.3 million** from December 31, 2024, primarily due to increased receivables from copper product sales[78](index=78&type=chunk) - Total trade payables were **$489.3 million**, an increase of **$48.8 million** from December 31, 2024, primarily due to a year-on-year increase in payables for auxiliary materials and spare parts[80](index=80&type=chunk) [Capital Expenditure](index=26&type=section&id=Capital%20Expenditure) Total capital expenditure in H1 2025 was $108.4 million, a significant increase of $62.4 million compared to the same period last year, primarily for mining and beneficiation facilities at Chambishi Southeast Mine, CNMC Luanshya New Mine Project, Baluba Open Pit Mine, and Chambishi Mining H1 2025 Capital Expenditure Details (Thousand USD) | Item | 2025 (Thousand USD) | 2024 (Thousand USD) | | :--- | :--- | :--- | | CNMC Mining Africa's Chambishi Southeast Mine Mining and Beneficiation Facilities | 23,687 | 6,264 | | CNMC Luanshya New Mine Project | 24,426 | 8,036 | | CNMC Luanshya Baluba Open Pit Mine | 13,042 | – | | Chambishi Mining's Mining and Beneficiation Facilities | 11,229 | 3,839 | | **Total** | **108,352** | **46,009** | [Financial Policies](index=26&type=section&id=Financial%20Policies) The Group has established various financial policies to standardize internal controls, safeguard assets, protect investor interests, and enhance operational management in compliance with Hong Kong Listing Rules - Financial policies such as the 'Financial Budget Management System', 'Cash Management System', 'Inventory Management System', 'Fixed Asset Management System', and 'Financial Information Disclosure Management System' have been formulated[84](index=84&type=chunk) - The policy objectives are to standardize internal controls, safeguard assets, protect investor interests, and comply with Hong Kong laws, regulations, and Listing Rules[84](index=84&type=chunk) [Market Risk Disclosure](index=27&type=section&id=Market%20Risk%20Disclosure) The Group faces commodity price risk (primarily copper price fluctuations), foreign exchange risk (Zambian Kwacha, Congolese Franc, and RMB against USD), and interest rate risk. The company hedges some risks through futures trading, provisional pricing contracts, and locking settlement currencies, but currently has no interest rate hedging policy - Major market risks include commodity price risk (copper), foreign exchange risk (Zambian Kwacha, Congolese Franc, and RMB), and interest rate risk[85](index=85&type=chunk) - Commodity price risk is controlled through copper futures trading contracts and provisional pricing contracts[86](index=86&type=chunk) - Foreign exchange hedging activities are conducted by locking contract and settlement currencies and accelerating tax refunds[87](index=87&type=chunk) - Currently, there is no interest rate hedging policy, but significant interest rate risks will be considered for hedging[88](index=88&type=chunk) [Employees and Remuneration Policy](index=27&type=section&id=Employees%20and%20Remuneration%20Policy) Employee remuneration is determined by job nature, experience, and contribution, with performance bonuses. Other benefits include insurance, medical care, education subsidies, and training programs. The company has no share scheme - Employee remuneration is determined by job nature, experience, and contribution, with performance-based bonuses[89](index=89&type=chunk) - Insurance, medical benefits, education subsidies, and training programs are provided[89](index=89&type=chunk) - The Company has no share scheme[89](index=89&type=chunk) [Significant Investments Held, Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures, and Plans for Future Material Investments or Purchases of Capital Assets](index=27&type=section&id=Significant%20Investments%20Held,%20Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries,%20Associates%20and%20Joint%20Ventures,%20and%20Plans%20for%20Future%20Material%20Investments%20or%20Purchases%20of%20Capital%20Assets) As of June 30, 2025, the Group held no significant investments and made no material acquisitions or disposals of subsidiaries, associates, or joint ventures. There are also no plans for significant investments or purchases of capital assets within the next year - For the six months ended June 30, 2025, the Group held no significant investments and made no material acquisitions or disposals of subsidiaries, associates, or joint ventures[90](index=90&type=chunk) - As at June 30, 2025, the Group had no plans for future material investments or purchases of capital assets, and no anticipated financing for such plans within the next year[90](index=90&type=chunk) [Pledge of Assets](index=28&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, certain property, plant, and equipment of the Group were pledged for self-guarantee of environmental funds, and restricted bank balances were primarily used for environmental fund guarantees and letter of credit issuance - Assets with a net book value of **$8,932,000** in property, plant and equipment were pledged for self-guarantee of environmental funds[92](index=92&type=chunk) - Restricted bank balances amounted to **$6,354,000**, primarily used for environmental fund guarantees and letter of credit issuance[92](index=92&type=chunk) [Gearing Ratio](index=28&type=section&id=Gearing%20Ratio) As of June 30, 2025, the Group recorded a net cash position of approximately $1,349.9 million, an increase from the end of 2024, and is therefore not considered to have any net debt - As at June 30, 2025, the Group recorded a net cash position of approximately **$1,349.9 million** (December 31, 2024: **$997.0 million**)[93](index=93&type=chunk) - The Group is not considered to have any net debt[93](index=93&type=chunk) [Contingent Liabilities](index=28&type=section&id=Contingent%20Liabilities) Details of significant contingent liabilities are provided in Note 21 to the interim financial report - Details of significant contingent liabilities are set out in Note 21 to the interim financial report[94](index=94&type=chunk) [No Material Changes](index=28&type=section&id=No%20Material%20Changes) Except as disclosed in this interim results report, no material changes affecting the company's performance required disclosure under the Listing Rules occurred during H1 2025 - Except as disclosed in this interim results report, no material changes affecting the Company's performance required disclosure under paragraphs 32 and 40(2) of Appendix D2 to the Listing Rules occurred during the period from January 1, 2025, to June 30, 2025[95](index=95&type=chunk) [Material Events After Reporting Period](index=28&type=section&id=Material%20Events%20After%20Reporting%20Period) As of the date of this interim results report, no material events significantly affecting the Group occurred after the reporting period, except for the temporary suspension of operations at CNMC Mining Africa's Southeast Orebody - As of the date of this interim results report, no material events significantly affecting the Group occurred after the reporting period, except for the temporary suspension of operations at CNMC Mining Africa's Southeast Orebody[96](index=96&type=chunk) V. [Use of Proceeds from Placing of New Shares Under General Mandate](index=28&type=section&id=V.%20Use%20of%20Proceeds%20from%20Placing%20of%20New%20Shares%20Under%20General%20Mandate) In April 2024, the company completed the placing and subscription of 163 million new shares, raising net proceeds of $124.08 million, primarily for project construction, potential mineral resource acquisitions, and working capital, with $112.321 million remaining unutilized as of June 30, 2025 - In **April 2024**, the placing and subscription of **163,000,000 new shares** was completed, with net proceeds of **$124,080 thousand**[100](index=100&type=chunk) - Proceeds are planned for increasing copper concentrate production capacity at mines in Luanshya, Chambishi, and other locations, potential mineral resource acquisitions, and supplementing general working capital[99](index=99&type=chunk) Use of Placing Proceeds (As at June 30, 2025) | Planned Use | Amount Used (Thousand USD) | Actual Use | Amount Unused (Thousand USD) | Planned Usage Time | | :--- | :--- | :--- | :--- | :--- | | Project construction work to increase copper concentrate production capacity mainly at mines in Luanshya, Chambishi, and other locations | 6,759 | Used for Chambishi project construction work | | | | Acquisition of potential mineral resources | 5,000 | Used for acquisition of SM MINERALS shares | 112,321 | Before December 31, 2027 | | Supplementing the Group's general working capital | – | – | | | VI. [Share Capital and Shareholding Structure](index=29&type=section&id=VI.%20Share%20Capital%20and%20Shareholding%20Structure) As of June 30, 2025, the company had 3,902,036,000 ordinary shares issued, with CNMC Mining Development and China Nonferrous Metal Mining Group holding 66.63% each, and this section also lists entities holding 10% or more equity in key Group member companies - As at June 30, 2025, the Company had **3,902,036,000 ordinary shares** in issue[103](index=103&type=chunk) Major Shareholders' Shareholding (As at June 30, 2025) | Major Shareholder | Capacity/Nature of Interest | Number of Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | CNMC Mining Development | Registered Holder | 2,600,000,000 | 66.63% | | China Nonferrous Metal Mining Group | Interest in Controlled Corporation | 2,600,000,000 | 66.63% | - CNMC Mining Development is a wholly-owned subsidiary of China Nonferrous Metal Mining Group[104](index=104&type=chunk) - Several Group member companies have non-controlling shareholders holding **10% or more equity**, such as CNMC Mining Africa and CNMC Luanshya with partial equity held by ZCCM-IH, and Chambishi Copper Smelter with **40% equity** held by Yunnan Copper Group Co., Ltd[105](index=105&type=chunk) [Number of Shares](index=30&type=section&id=Number%20of%20Shares) As of June 30, 2025, the total number of ordinary shares issued by the company was 3,902,036,000 - As at June 30, 2025, the Company had **3,902,036,000 ordinary shares** in issue[103](index=103&type=chunk) [Shareholding Structure](index=30&type=section&id=Shareholding%20Structure) Major shareholders CNMC Mining Development and China Nonferrous Metal Mining Group each hold 66.63% of the company's shares. Additionally, several Group subsidiaries have other entities holding 10% or more equity Interests and Short Positions of Major Shareholders and Other Persons in Shares and Underlying Shares (As at June 30, 2025) | Major Shareholder | Capacity/Nature of Interest | Number of Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | CNMC Mining Development | Registered Holder | 2,600,000,000 | 66.63% | | China Nonferrous Metal Mining Group | Interest in Controlled Corporation | 2,600,000,000 | 66.63% | Entities Holding 10% or More Equity in Group Member Companies (As at June 30, 2025) | Group Member Company | Entity Holding 10% or More Interest (excluding Group Member Companies) | Equity Percentage | | :--- | :--- | :--- | | CNMC Mining Africa | Zambia Consolidated Copper Mines Investments Holdings Plc | 15% | | CNMC Luanshya | ZCCM-IH | 20% | | Chambishi Copper Smelter | Yunnan Copper Group Co., Ltd | 40% | | Chambishi Wet Process Smelter | Hong Kong China-Africa Mining Investment Co., Ltd | 30% | | Chambishi Mining | La Generale des Carrieres et des Mines SA | 40% | VII. [Corporate Governance](index=31&type=section&id=VII.%20Corporate%20Governance) The Group is committed to maintaining high standards of corporate governance, continuously improving its internal control system, with the Board and its committees diligently performing their duties in compliance with the Corporate Governance Code in Appendix C1 of the Listing Rules - The Group is committed to achieving and maintaining high standards of corporate governance, believing it is crucial for ensuring the Company's integrity in business and maintaining investor confidence[108](index=108&type=chunk) - During the reporting period, the Group further improved its internal control system and effectively monitored key areas such as legal cases, connected transactions, internal control risks, and inside information through monthly compliance reports[108](index=108&type=chunk) - The Company's Board of Directors and its committees perform their duties in accordance with the law, operate in a standardized manner, and comply with the code provisions set out in Appendix C1 of the Listing Rules[108](index=108&type=chunk)[109](index=109&type=chunk) VIII. [Human Resources](index=32&type=section&id=VIII.%20Human%20Resources) As of June 30, 2025, the Group employed a total of 8,492 employees, comprising 908 Chinese employees and 7,584 local employees, with total employee costs for H1 increasing to approximately $57.6 million compared to the prior year - As at June 30, 2025, the Group employed a total of **8,492 employees**, comprising **908 Chinese employees** and **7,584 local employees** in Zambia and the Democratic Republic of Congo[110](index=110&type=chunk) - The Group's total employee costs for the six months ended June 30, 2025, were approximately **$57.6 million** (six months ended June 30, 2024: **$52.3 million**)[110](index=110&type=chunk) IX. [Corporate Social Responsibility](index=33&type=section&id=IX.%20Corporate%20Social%20Responsibility) The Group adheres to its mission of "developing the enterprise, rewarding shareholders, employees, and society," actively fulfilling social responsibilities in working environment, health and safety, environmental protection, and community engagement. During the reporting period, a tailings dam incident occurred at Chambishi Wet Process Smelter and a safety accident at CNMC Mining Africa's Southeast Orebody - The Group upholds a 'people-oriented' management philosophy, advocates for equitable and standardized employment policies, and provides a market-competitive remuneration system and a high-quality growth environment[113](index=113&type=chunk) - Strictly adheres to safety production and labor protection regulations, upholding the 'safety first, prevention paramount' principle, but in **June 2025**, a safety accident occurred at Chambishi Southeast Orebody, resulting in the death of a subcontractor employee, and the mine has been temporarily suspended for investigation[114](index=114&type=chunk) - Aims to build an environmentally friendly enterprise, actively implementing energy saving and emission reduction, strengthening pollution monitoring, and promoting the construction of an environmental management system[115](index=115&type=chunk) - In **February 2025**, Chambishi Wet Process Smelter in Zambia experienced a tailings dam incident, leading to a suspension of operations, with environmental remediation and independent cost assessment currently underway[115](index=115&type=chunk) - Actively participates in municipal construction, vocational education, and community environmental improvement in its operating locations, contributing to local economic and social development[116](index=116&type=chunk) X. [Outlook](index=35&type=section&id=X.%20Outlook) Looking ahead, the Group anticipates facing multiple adverse factors including slow global economic recovery, trade frictions, geopolitical conflicts, low smelting processing fees, and the suspension of operations at Chambishi Southeast Orebody. Nevertheless, management is confident in achieving the annual steady growth target by stabilizing production, ensuring profitability, prioritizing safety and environmental protection, operating compliantly, and advancing reforms under the Board's leadership - H1 2025 faced multiple adverse factors including increased external environmental uncertainty, significant fluctuations in international copper prices, volatile situation in the Democratic Republic of Congo, power shortages, and smelting processing fees falling to historical lows[118](index=118&type=chunk) - The Company strengthened investor relations in the capital market, maintained a high dividend payout ratio, and opened a new chapter of development through the acquisition of the Benkala Copper Mine in Kazakhstan[118](index=118&type=chunk) - It is anticipated that a full global economic recovery will take time in H2, trade frictions and geopolitical conflicts may exacerbate commodity price volatility; country risks in Central and Southern Africa may intensify; smelting processing fees may be difficult to improve in the short term; and the temporary suspension of Chambishi Southeast Orebody will affect full-year self-produced copper output[118](index=118&type=chunk) - From a supply-demand fundamental perspective, copper mine supply remains tight, demand for copper in power grids, new energy, and other sectors is expected to remain resilient, and international copper prices are likely to remain high[119](index=119&type=chunk) - Management will continue to stabilize production and ensure profitability, highly prioritize safety, environmental protection, compliant operations, and sustainable development, accelerate the implementation of various reforms, ensure the completion of annual production and operation targets, and achieve the overall goal of steady growth in **2025**[119](index=119&type=chunk) XI. [Other Information](index=36&type=section&id=XI.%20Other%20Information) This section provides the company's basic registration details, parent and ultimate controlling company information, and confirms its principal business. The Board does not recommend an interim dividend. It also discloses directors' and chief executives' interests, the Audit Committee's review, and confirms compliance with the Model Code for Securities Transactions by Directors, with no purchases, redemptions, or sales of listed securities during the reporting period - The Company was incorporated in Hong Kong on **July 18, 2011**; its parent company is CNMC Mining Development Co., Ltd., and its ultimate controlling company is China Nonferrous Metal Mining Group Co., Ltd. (wholly owned by the State-owned Assets Supervision and Administration Commission of the State Council)[121](index=121&type=chunk) - The Company primarily engages in investment holding, while its subsidiaries mainly engage in copper-cobalt metal exploration, mining, beneficiation, hydrometallurgy, pyrometallurgy, sales of cathode copper, blister and anode copper, cobalt hydroxide, sulfuric acid, and liquid sulfur dioxide, as well as providing copper product tolling services[121](index=121&type=chunk) - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[122](index=122&type=chunk) - As at June 30, 2025, no director or chief executive had any interests or short positions in the shares, underlying shares, and debentures of the Company or its associated corporations that were required to be disclosed[123](index=123&type=chunk) - The Audit Committee has reviewed the interim financial results for the six months ended June 30, 2025, and is of the opinion that they comply with applicable accounting standards, Listing Rules, and statutory requirements[128](index=128&type=chunk) - The Company has adopted the 'Model Code for Securities Transactions by Directors of Listed Issuers' as set out in Appendix C3 of the Listing Rules, and all directors have complied with the said code during the reporting period[129](index=129&type=chunk) - During the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities[130](index=130&type=chunk) XII. [Interim Financial Report](index=38&type=section&id=XII.%20Interim%20Financial%20Report) This section contains the independently reviewed condensed consolidated financial statements and their notes, providing detailed financial data for the Group's H1 2025, including profit or loss, financial position, changes in equity, and cash flows. The notes explain the basis of preparation, accounting policy changes, revenue and segment reporting, various expenses, liquidity, capital expenditure, related party transactions, and contingent liabilities [Independent Review Report](index=38&type=section&id=Independent%20Review%20Report) KPMG has reviewed this interim financial report in accordance with Hong Kong Standard on Review Engagements 2410 and noted no material non-compliance with Hong Kong Accounting Standard 34 - KPMG has reviewed this interim financial report[132](index=132&type=chunk) - A review is substantially less in scope than an audit, and therefore no audit opinion is expressed[133](index=133&type=chunk) - Based on the review, nothing has come to the reviewer's attention that causes them to believe the interim financial report is not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting'[134](index=134&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=40&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement shows the Group's H1 2025 revenue of $1,751.5 million, gross profit of $570.3 million, operating profit of $533.7 million, total profit and comprehensive income for the period of $371.3 million, and profit attributable to owners of $263.3 million. Basic and diluted earnings per share were 6.75 US cents H1 2025 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary (Thousand USD) | Indicator | 2025 (Thousand USD) | 2024 (Thousand USD) | | :--- | :--- | :--- | | Revenue | 1,751,533 | 2,009,768 | | Cost of sales | (1,181,266) | (1,497,808) | | Gross profit | 570,267 | 511,960 | | Operating profit | 533,730 | 438,661 | | Profit before tax | 532,505 | 432,408 | | Income tax expense | (161,179) | (129,180) | | Total profit and comprehensive income for the period | 371,326 | 303,228 | | Profit attributable to owners of the Company | 263,328 | 219,109 | | Basic and diluted earnings per share (US cents per share) | 6.75 | 5.75 | [Condensed Consolidated Statement of Financial Position](index=40&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets were $4,681.1 million, total equity was $3,233.0 million, and total liabilities were $1,448.1 million. Both non-current and current assets increased, with a significant rise in cash and cash equivalents June 30, 2025 Condensed Consolidated Statement of Financial Position Summary (Thousand USD) | Indicator | June 30, 2025 (Thousand USD) | December 31, 2024 (Thousand USD) | | :--- | :--- | :--- | | Non-current assets | 1,830,346 | 1,781,719 | | Current assets | 2,850,764 | 2,372,688 | | **Total assets** | **4,681,110** | **4,154,407** | | Total equity attributable to owners of the Company | 2,345,026 | 2,249,068 | | Non-controlling interests | 888,022 | 780,024 | | **Total equity** | **3,233,048** | **3,029,092** | | Non-current liabilities | 272,429 | 264,446 | | Current liabilities | 1,175,633 | 860,869 | | **Total liabilities** | **1,448,062** | **1,125,315** | | **Total equity and liabilities** | **4,681,110** | **4,154,407** | - Net book value of property, plant and equipment was **$1,480,751 thousand**, a slight increase from the end of **2024**[138](index=138&type=chunk) - Cash and cash equivalents were **$1,353,433 thousand**, a significant increase from **$1,018,662 thousand** at the end of **2024**[138](index=138&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=43&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This statement shows that for the six months ended June 30, 2025, total equity attributable to owners of the company increased from $2,249.1 million to $2,345.0 million, primarily influenced by profit for the period and dividends declared H1 2025 Condensed Consolidated Statement of Changes in Equity Summary (Thousand USD) | Item | Total equity attributable to owners of the Company (Thousand USD) | Non-controlling interests (Thousand USD) | Total equity (Thousand USD) | | :--- | :--- | :--- | :--- | | Balance at January 1, 2025 | 2,249,068 | 780,024 | 3,029,092 | | Total profit and comprehensive income for the period | 263,328 | 107,998 | 371,326 | | Dividends declared by the Company | (167,370) | – | (167,370) | | Balance at June 30, 2025 | 2,345,026 | 888,022 | 3,233,048 | [Condensed Consolidated Cash Flow Statement](index=44&type=section&id=Condensed%20Consolidated%20Cash%20Flow%20Statement) This statement shows that for the six months ended June 30, 2025, operating activities generated a net cash inflow of $525.9 million, investing activities resulted in a net outflow of $151.2 million, and financing activities resulted in a net outflow of $42.1 million. Cash and cash equivalents at period-end were $1,353.4 million H1 2025 Condensed Consolidated Cash Flow Statement Summary (Thousand USD) | Activity Type | 2025 (Thousand USD) | 2024 (Thousand USD) | | :--- | :--- | :--- | | Net cash generated from operating activities | 525,901 | 413,118 | | Net cash (used in)/generated from investing activities | (151,195) | 26,765 | | Net cash (used in)/generated from financing activities | (42,099) | 94,858 | | Net increase in cash and cash equivalents | 332,607 | 534,741 | | Cash and cash equivalents at June 30 | 1,353,433 | 1,027,787 | [Notes to the Interim Financial Report](index=44&type=section&id=Notes%20to%20the%20Interim%20Financial%20Report) This section provides detailed explanations and supplementary information to the condensed consolidated financial statements, covering the basis of preparation, accounting policy changes, segment reporting, composition and changes in various financial data, liquidity, capital expenditure, related party transactions, and contingent liabilities [Basis of Preparation](index=45&type=section&id=Basis%20of%20Preparation) This interim financial report is prepared in accordance with applicable disclosure requirements of the Hong Kong Stock Exchange Listing Rules and Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the HKICPA, and was authorized for issue on August 28, 2025 - This interim financial report is prepared in accordance with the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the Hong Kong Institute of Certified Public Accountants[144](index=144&type=chunk) - This interim financial report is unaudited but has been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410[145](index=145&type=chunk) [Changes in Accounting Policies](index=46&type=section&id=Changes%20in%20Accounting%20Policies) The Group has applied the amendments to Hong Kong Accounting Standard 21 "The Effects of Changes in Foreign Exchange Rates—Lack of Exchangeability" issued by the HKICPA, but these amendments had no material impact on this interim report as the Group did not undertake related transactions, and no new standards or interpretations not yet effective have been applied - The Group has applied the amendments to Hong Kong Accounting Standard 21 'The Effects of Changes in Foreign Exchange Rates—Lack of Exchangeability' issued by the Hong Kong Institute of Certified Public Accountants, but these amendments had no material impact on this interim report[146](index=146&type=chunk) - The Group has not applied any new standards or interpretations that are not yet effective for the current accounting period[147](index=147&type=chunk) [Revenue and Segment Reporting](index=46&type=section&id=Revenue%20and%20Segment%20Reporting) The Group's operating segments are primarily divided into hydrometallurgy and pyrometallurgy, with revenue categorized by major product or service lines and geographical markets. The hydrometallurgy segment mainly produces cathode copper and cobalt hydroxide, while the pyrometallurgy segment primarily produces blister and anode copper, sulfuric acid, and liquid sulfur dioxide, also providing copper product tolling services. Singapore and Hong Kong are the main customer geographical markets - The Group's operating segments are primarily based on the type of goods produced, divided into two reportable segments: hydrometallurgy and pyrometallurgy[148](index=148&type=chunk)[149](index=149&type=chunk) - The hydrometallurgy segment primarily produces and sells cathode copper and cobalt hydroxide; the pyrometallurgy segment primarily produces and sells blister and anode copper, sulfuric acid, and liquid sulfur dioxide, and provides copper product tolling services[149](index=149&type=chunk) H1 2025 Revenue from Contracts with Customers by Geographical Market (Thousand USD) | Customer Geographical Location | 2025 (Thousand USD) | 2024 (Thousand USD) | | :--- | :--- | :--- | | Singapore | 1,156,495 | 362,333 | | Hong Kong | 186,318 | 383,198 | | Africa | 183,963 | 126,103 | | Switzerland | 157,593 | 349,331 | | Belgium | 61,431 | 26,940 | | Mainland China | 5,733 | 761,863 | | **Total** | **1,751,533** | **2,009,768** | H1 2025 Segment Results (Thousand USD) | Segment | External Sales Revenue (Thousand USD) | Reportable Segment Profit (Thousand USD) | | :--- | :--- | :--- | | Hydrometallurgy | 611,635 | 180,374 | | Pyrometallurgy | 1,139,898 | 193,031 | | **Consolidated** | **1,751,533** | **373,405** | [Other Gains and Losses](index=51&type=section&id=Other%20Gains%20and%20Losses_Notes) In H1 2025, net other gains and losses amounted to a gain of $48.7 million, primarily driven by a significant increase in net foreign exchange gains, while also recognizing impairment losses on input VAT receivables and financial assets H1 2025 Other Gains and Losses Summary (Thousand USD) | Item | 2025 (Thousand USD) | 2024 (Thousand USD) | | :--- | :--- | :--- | | Net (loss)/gain on disposal of property, plant and equipment | (35) | 179 | | Impairment loss on input VAT receivables | (7,668) | (11,493) | | Impairment loss (recognized)/reversed on financial assets under expected credit loss | (4,056) | 600 | | Net foreign exchange gains | 41,991 | 5,251 | | (Losses)/gains arising from changes in fair value of financial liabilities/assets at fair value through profit or loss | 18,455 | 9,893 | | **Total** | **48,687** | **3,430** | - Net foreign exchange gains significantly increased from **$5,251 thousand in H1 2024 to $41,991 thousand in H1 2025**[156](index=156&type=chunk) [Finance Costs](index=51&type=section&id=Finance%20Costs_Notes) In H1 2025, finance costs were $1.2 million, a significant reduction from the prior period, primarily due to a substantial decrease in interest on bank and other borrowings, with some interest expenses capitalized to property, plant, and equipment H1 2025 Finance Costs Summary (Thousand USD) | Item | 2025 (Thousand USD) | 2024 (Thousand USD) | | :--- | :--- | :--- | | Interest on bank and other borrowings | 111 | 5,583 | | Interest on lease liabilities | 654 | 6 | | Reversal of discount | 546 | 664 | | Less: Interest expense capitalized to property, plant and equipment | (86) | – | | **Total** | **1,225** | **6,253** | - Interest on bank and other borrowings was capitalized at an annual rate of **1.75%**[158](index=158&type=chunk) [Profit Before Tax](index=52&type=section&id=Profit%20Before%20Tax) In H1 2025, profit before tax was net of total depreciation and amortization of $95.4 million, most of which was capitalized to inventories and property, plant, and equipment. Inventory cost was $1,144.5 million, and an inventory write-down of $615 thousand was recognized H1 2025 Profit Before Tax Deductions/Additions Summary (Thousand USD) | Item | 2025 (Thousand USD) | 2024 (Thousand USD) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 91,163 | 96,492 | | Depreciation of right-of-use assets | 1,045 | 141 | | Amortisation of mining rights | 3,170 | 6,315 | | **Total amortisation and depreciation** | **95,378** | **102,948** | | Less: Capitalised to inventories | (84,177) | (90,990) | | Less: Capitalised to property, plant and equipment | (3,398) | – | | Cost of inventories recognised as an expense at carrying amount | 1,144,457 | 1,478,557 | | Write-down/(reversal of write-down) of inventories to net realisable value | 615 | (2,000) | | Cost of services recognised as an expense | 36,194 | 21,251 | [Income Tax in the Consolidated Statement of Profit or Loss](index=52&type=section&id=Income%20Tax%20in%20the%20Consolidated%20Statement%20of%20Profit%20or%20Loss) In H1 2025, income tax expense was $161.2 million, with an effective tax rate of 30.3%, primarily comprising current tax in Zambia and the Democratic Republic of Congo, and deferred tax was recognized. The Group is subject to Pillar Two income tax rules and has applied the temporary mandatory exception H1 2025 Income Tax in the Consolidated Statement of Profit or Loss Summary (Thousand USD) | Item | 2025 (Thousand USD) | 2024 (Thousand USD) | | :--- | :--- | :--- | | Current tax: | | | | －Hong Kong profits tax | 263 | 200 | | －Ireland income tax | 48 | 1,379 | | －DRC income tax | 34,730 | 24,261 | | －Zambia income tax | 110,151 | 72,078 | | Deferred tax: | | | | －Current period | 15,987 | 31,262 | | **Total income tax expense** | **161,179** | **129,180** | | Effective tax rate – current period | 30.3% | 29.9% | - The Group is subject to the Global Anti-Base Erosion Model Rules ('Pillar Two Model Rules') issued by the Organisation for Economic Co-operation and Development, and has applied the temporary mandatory exception to deferred tax accounting for top-up tax[161](index=161&type=chunk)[162](index=162&type=chunk) - Luanshya Copper Smelter Co., Ltd. is eligible for a **68.29% income tax exemption** for five years starting from **July 2021**[165](index=165&type=chunk) [Earnings Per Share](index=53&type=section&id=Earnings%20Per%20Share) In H1 2025, basic earnings per share were 6.75 US cents, an increase from 5.75 US cents in the prior period. Diluted earnings per share were the same as basic earnings per share due to the absence of dilutive potential ordinary shares - Basic earnings per share for the six months ended June 30, 2025, were **6.75 US cents** (2024: **5.75 US cents**)[137](index=137&type=chunk)[163](index=163&type=chunk) - Basic earnings per share are calculated based on profit attributable to shareholders of the Company of **$263,328,000** and the weighted average number of ordinary shares in issue during the period of **3,902,036,000 shares**[163](index=163&type=chunk) - For the six months ended June 30, 2025 and 2024, there were no dilutive potential ordinary shares, thus diluted earnings per share were the same as basic earnings per share[164](index=164&type=chunk) [Property, Plant and Equipment](index=54&type=section&id=Property,%20Plant%20and%20Equipment) In H1 2025, the Group acquired property, plant, and equipment and incurred construction costs totaling $103.3 million. During the period, property, plant, and equipment with a net book value of $1.1 million were disposed of, resulting in a loss on disposal of $35 thousand - During the six months ended June 30, 2025, the Group acquired property, plant and equipment and incurred construction costs totaling **$103,275,000**[166](index=166&type=chunk) - During the period, items of property, plant and equipment with a net book value of **$1,073,000** were disposed of, resulting in a loss on disposal of **$35,000**[166](index=166&type=chunk) [Other Equity Investments](index=54&type=section&id=Other%20Equity%20Investments) As of June 30, 2025, the Group held an unlisted equity investment in SM Minerals of $5.0 million, designated as fair value through other comprehensive income due to its strategic purpose - As at June 30, 2025, the Group held an unlisted equity investment in SM Minerals of **$5,000 thousand**[167](index=167&type=chunk) - This investment is designated as fair value through other comprehensive income as it is held for strategic purposes[167](index=167&type=chunk) - SM Minerals is located in Kazakhstan and holds certain copper mining and exploration rights[168](index=168&type=chunk) [Trade Receivables Measured at Amortised Cost / Trade Receivables Measured at Fair Value Through Profit or Loss](index=54&type=section&id=Trade%20Receivables%20Measured%20at%20Amortised%20Cost%20/%20Trade%20Receivables%20Measured%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As of June 30, 2025, trade receivables measured at amortized cost were $86.8 million, and trade receivables measured at fair value through profit or loss were $258.1 million. The total of both increased from the end of 2024, primarily due to increased receivables from copper product sales Trade Receivables (Thousand USD) | Item | June 30, 2025 (Thousand USD) | December 31, 2024 (Thousand USD) | | :--- | :--- | :--- | | Trade receivables measured at amortised cost | 86,824 | 70,913 | | Trade receivables measured at fair value through profit or loss | 258,074 | 185,742 | Ageing Analysis of Trade Receivables Measured at Amortised Cost (Thousand USD) | Ageing | June 30, 2025 (Thousand USD) | December 31, 2024 (Thousand USD) | | :--- | :--- | :--- | | 0 to 30 days | 60,238 | 36,836 | | 31 to 90 days | 8,725 | 28,351 | | 91 to 180 days | 17,861 | 3,119 | | 181 to 365 days | – | 2,607 | - Trade receivables related to related parties totaled **$251.4 million**, primarily from fellow subsidiaries and non-controlling shareholders of subsidiaries[170](index=170&type=chunk)[171](index=171&type=chunk) [Prepayments and Other Receivables](index=56&type=section&id=Prepayments%20and%20Other%20Receivables) As of June 30, 2025, non-current prepayments and other receivables were $222.2 million, and current portions were $300.3 million. Net input VAT receivables totaled $303.9 million, with an impairment provision of $133.8 million. During the period, $62.7 million was deposited with fellow subsidiary CNMC Treasury Management (Hong Kong) Limited Prepayments and Other Receivables (Thousand USD) | Item | June 30, 2025 (Thousand USD) | December 31, 2024 (Thousand USD) | | :--- | :--- | :--- | | Non-current prepayments and other receivables | 222,188 | 178,227 | | Current prepayments and other receivables | 300,256 | 236,378 | | **Total** | **522,444** | **414,605** | - Net book value of input VAT receivables was **$303,953,000**, with an impairment provision of **$133,827,000**[175](index=175&type=chunk)[176](index=176&type=chunk) - Deposits with a fellow subsidiary amounted to **$62,700 thousand**, under the treasury management services agreement with CNMC Treasury Management (Hong Kong) Limited[172](index=172&type=chunk)[175](index=175&type=chunk) [Restricted Deposits, Cash and Cash Equivalents and Other Cash Flow Information](index=58&type=section&id=Restricted

中期報 告 202 5 Interim Report 202 5 Interim Report 2025 中期報告 目錄 | 公司資料 | 2 | | --- | --- | | 財務及業務摘要 | 4 | | 管理層討論及分析 | 5 | | 企業管治及其他資料 | 32 | | 中期財務資料的審閱報告 | 47 | | 中期簡明綜合全面收益表 | 48 | | 中期簡明綜合資產負債表 | 49 | | 中期簡明綜合權益變動表 | 51 | | 中期簡明綜合現金流量表 | 52 | | 中期簡明綜合財務資料附註 | 53 | | 釋義 | 87 | 頁數 公司資料 董事會 於最後實際可行日期，董事會成員如下： 執行董事 趙中博士 （董事長） 謝陽先生 李崢博士 非執行董事 李東方先生 王大松博士 獨立非執行董事 計劍博士 邱妘女士 錢湘博士 聯席公司秘書 袁泉衛先生 關秀妍女士 授權代表 趙中博士 關秀妍女士 監事 馬長安先生 （主席） 劉濤先生 王宏波女士 審計委員會 邱妘女士 （主席） 計劍博士 錢湘博士 薪酬委員會 計劍博士 （主席） 李東方先生 錢湘博士 提名委員會 趙中博士 （主席） 邱妘女士 計 ...

Financial Performance - For the six months ended June 30, 2025, total revenue increased by approximately 4.6% year-on-year to RMB 1,166.5 million, driven primarily by an increase in project upgrading and renovation projects[12]. - The overall gross margin for the period was 50.3%, representing an increase of 1.5 percentage points compared to the same period last year, with gross profit reaching RMB 587.3 million, an increase of 7.9% year-on-year[12]. - The Group recorded net operating cash flow of RMB 394.2 million for the period, marking the best interim results since its listing[13]. - The total operating revenue of the Group's Urban Water Treatment services for the six months ended 30 June 2025 was RMB649.8 million, representing an increase of approximately 5% compared to RMB621.7 million for the same period last year[34][36]. - The total construction revenue recognized for 14 projects, including 12 wastewater treatment plants, was RMB133.7 million, reflecting a year-on-year increase of approximately 51% from RMB88.5 million[38][39]. - The Group recorded total revenue of RMB1,166.5 million for the six months ended 30 June 2025, an increase of approximately 5% from RMB1,115.5 million in the previous corresponding period[46][49]. - Profit before tax increased to RMB 169,989,000, up 10.9% from RMB 153,297,000 in the previous year[164]. - Profit for the period was RMB 107,395,000, slightly up from RMB 106,099,000 in 2024[164]. - Total comprehensive income for the period was RMB 111,645,000, compared to RMB 110,349,000 in 2024[165]. Cost and Expenses - Financing costs decreased significantly by approximately 15.1% year-on-year to RMB 232.7 million due to a decrease in borrowing interest rates and total liabilities[12]. - Administrative expenses decreased by approximately 8% to RMB 121.7 million for the six months ended June 30, 2025, compared to RMB 132.8 million in the previous period[54]. - Other expenses significantly increased to RMB 97.0 million for the six months ended June 30, 2025, from RMB 20.4 million in the previous corresponding period, mainly due to increased losses on disposal of a subsidiary[55]. - Income tax expense for the six months ended June 30, 2025, was RMB 62.6 million, with an effective tax rate of approximately 37%, an increase of 6 percentage points from about 31% in the previous period[63]. Assets and Liabilities - The Group's total interest-bearing debts decreased to RMB9,584.7 million as of June 30, 2025, from RMB9,854.0 million as of December 31, 2024, with 68.1% classified as long-term[88]. - The Group's gearing ratio decreased to 67.8% as of June 30, 2025, down from 69.2% in the corresponding period last year[89]. - The total daily treatment capacity for wastewater treatment plants was 4,059,500 tonnes, while the total processing volume for the six months ended June 30, 2025, was 595.0 million tonnes, a decrease of 5% compared to the same period last year[30]. - Financial receivables increased to RMB 11,681.9 million as of June 30, 2025, from RMB 11,674.0 million as of December 31, 2024, reflecting a minor increase of RMB 7.9 million[67]. - Trade receivables increased to RMB 3,335.8 million as of June 30, 2025, from RMB 3,169.7 million as of December 31, 2024, an increase of RMB 166.1 million[71]. - The total assets as of June 30, 2025, amounted to RMB 19,055,003,000, with segment assets for Urban Water at RMB 16,664,933,000[195]. - Total liabilities stood at RMB 12,924,841,000, with Urban Water segment liabilities at RMB 12,160,792,000[195]. Operational Highlights - The actual wastewater treatment volume decreased by approximately 4.7% year-on-year to 595.0 million tonnes, while the wastewater treatment plant capacity utilization rate remained high at 81%[13]. - The Group plans to enhance profitability through upgrading and expansion of existing projects and reasonable adjustments to wastewater treatment prices[17]. - The Group aims to pursue collections on accounts receivable and seek diversified solutions to reduce financial burdens and interest expenses[17]. - The wastewater treatment industry is expected to continue developing in a healthy and sustainable manner, supported by government policies and increased budget allocations[16]. - The Group plans to enhance profitability and competitiveness by further expanding its Urban Water Treatment chain[27]. Shareholder Information - Mr. Zhao Juanxian holds 546,728,004 shares, representing 25.55% of the company's issued share capital[113]. - China Water Affairs Group Limited and Sharp Profit Investments Limited each hold 608,990,000 shares, accounting for 28.46% of the issued share capital[121]. - As of June 30, 2025, no other directors or chief executives have interests or short positions in the company's shares that require disclosure[115]. - The company maintains a public float of at least 25% of its total issued share capital, as required by the Stock Exchange[124]. Governance and Compliance - The Group has complied with the Corporate Governance Code during the six months ended June 30, 2025, with no deviations reported[103]. - The Group has strengthened control over budget, risk, performance, and responsibilities to enhance operational efficiency[104]. - The Audit Committee, consisting of three independent non-executive Directors, reviewed the unaudited interim results for the six months ended June 30, 2025[148]. - The Remuneration Committee is responsible for reviewing and approving management's remuneration proposals and consists of one non-executive Director and two independent non-executive Directors as of June 30, 2025[151]. Segment Information - The Group's operating segments include Urban Water Treatment, Water Environment Comprehensive Remediation, and Rural Water Improvement, each representing a strategic business unit with distinct risks and returns[184][193]. - Urban Water Treatment segment generated revenue of RMB 1,136,702,000, contributing the majority to total segment revenue[194]. - Segment results for Urban Water Treatment were RMB 275,909,000, while Rural Water Improvement reported a loss of RMB 6,440,000[194].

Company Information This section provides essential information about Feiyu Technology International Limited, covering its governance structure, key personnel, legal and audit advisors, registered offices, and share details [Board of Directors](index=4&type=section&id=Board%20of%20Directors) The Board of Directors comprises executive directors Yao Jianjun (Chairman and CEO), Chen Jianyu (President), Bi Lin (Vice President), Lin Zhibin (Vice President), and independent non-executive directors Liu Qianli, Lai Xiaoling, and Cao Xi - Executive directors include Yao Jianjun (Chairman and CEO), Chen Jianyu (President), Bi Lin (Vice President), and Lin Zhibin (Vice President)[6](index=6&type=chunk) - Independent non-executive directors include Liu Qianli, Lai Xiaoling, and Cao Xi[6](index=6&type=chunk) [Audit Committee](index=4&type=section&id=Audit%20Committee) The Audit Committee consists of Liu Qianli (Chairperson), Lai Xiaoling, and Cao Xi - The Audit Committee Chairperson is Ms Liu Qianli[6](index=6&type=chunk) [Remuneration Committee](index=4&type=section&id=Remuneration%20Committee) The Remuneration Committee comprises Liu Qianli (Chairperson), Bi Lin, and Lai Xiaoling - The Remuneration Committee Chairperson is Ms Liu Qianli[6](index=6&type=chunk) [Nomination Committee](index=4&type=section&id=Nomination%20Committee) The Nomination Committee is composed of Yao Jianjun (Chairman), Liu Qianli, and Cao Xi - The Nomination Committee Chairman is Mr Yao Jianjun[6](index=6&type=chunk) [Legal Advisors and Auditor](index=4&type=section&id=Legal%20Advisors%20and%20Auditor) The Hong Kong legal advisor is Deacons, the Cayman Islands legal advisor is Conyers Dill & Pearman (Cayman) Limited, and the auditor is Ernst & Young - Hong Kong Legal Advisor: Deacons[7](index=7&type=chunk) - Cayman Islands Legal Advisor: Conyers Dill & Pearman (Cayman) Limited[7](index=7&type=chunk) - Auditor: Ernst & Young[7](index=7&type=chunk) [Registered Office and Company Headquarters](index=5&type=section&id=Registered%20Office%20and%20Company%20Headquarters) The company's registered office is in the Cayman Islands, its headquarters are in Xiamen, Fujian Province, China, and its principal place of business in Hong Kong is at United Centre - The registered office is located at Cricket Square, Cayman Islands[8](index=8&type=chunk) - The company headquarters are located at Building A, Feiyu Building, No 78 Hu'an Road, Huli District, Xiamen, Fujian Province, China[8](index=8&type=chunk) - The principal place of business in Hong Kong is located at Unit B, 17th Floor, United Centre, 95 Queensway, Admiralty, Hong Kong[8](index=8&type=chunk) [Share Information](index=5&type=section&id=Share%20Information) The company's stock code is 1022, and it was listed on the Main Board of The Stock Exchange of Hong Kong Limited on December 5, 2014 - Stock Code: **1022**[9](index=9&type=chunk) - Listing Date: December 5, 2014[9](index=9&type=chunk) Financial Highlights Feiyu Technology's revenue for H1 2025 significantly increased by **343.6%** year-on-year to **RMB451.4 million**, gross profit grew by **400.5%** to **RMB428.3 million**, and the company achieved a turnaround to a profit attributable to owners of the parent of **RMB57.5 million**, with total assets and total equity also increasing 2025 H1 Key Financial Data (RMB thousand) | Indicator | 2025 H1 | 2024 H1 | Change % | | :--- | :--- | :--- | :--- | | Revenue | 451,353 | 101,752 | 343.6 | | Gross Profit | 428,324 | 85,587 | 400.5 | | Profit/(Loss) Before Tax | 57,706 | (1,635) | Not Applicable | | Profit/(Loss) for the Period Attributable to Owners of the Parent | 57,520 | (1,586) | Not Applicable | | Basic and Diluted Earnings/(Loss) Per Share Attributable to Ordinary Equity Holders of the Parent | RMB0.03 | RMB0.00 | | | Non-current Assets | 523,948 | 501,355 | 4.5 | | Current Assets | 193,873 | 178,727 | 8.5 | | Total Assets | 717,821 | 680,082 | 5.5 | | Total Equity | 537,758 | 482,580 | 11.4 | | Non-current Liabilities | 88,646 | 89,733 | (1.2) | | Current Liabilities | 91,417 | 107,769 | (15.2) | | Total Liabilities | 180,063 | 197,502 | (8.8) | | Total Equity and Liabilities | 717,821 | 680,082 | 5.5 | Management Discussion and Analysis This section details Feiyu Technology's business performance, financial position, and future outlook for H1 2025, highlighting significant revenue growth driven by HTML5 games, strategic focus on IP and global market diversification, and a turnaround to profitability despite increased sales and distribution expenses [Business Review and Outlook](index=7&type=section&id=Business%20Review%20and%20Outlook) Feiyu Technology successfully executed its HTML5 game strategy in H1 2025, achieving a **343.6%** year-on-year revenue increase and a return to profitability, with plans to further develop HTML5 games and expand into overseas markets in H2 through new titles, IP sequels, and global market expansion [Overview](index=7&type=section&id=Overview) In H1 2025, the company continued its strategy, demonstrating strong growth in the HTML5 game sector with an increase in new game approvals, despite weak consumer confidence and heightened competition, leading to significant revenue growth and a return to profitability driven by the excellent performance of its HTML5 game "One Step, Two Steps" - The operating environment was mixed, with weak consumer confidence and increased competition from live streaming platforms and short video applications[13](index=13&type=chunk) - A more relaxed regulatory environment and an increase in approved new games brought new growth opportunities to the industry[13](index=13&type=chunk) - The HTML5 game sector has shown strong growth in recent years, attracting increased investment from developers and publishers[13](index=13&type=chunk) - The company's HTML5 game strategy, initiated in 2023, achieved remarkable results during the period[14](index=14&type=chunk) [2025 Outlook](index=8&type=section&id=2025%20Outlook) The company plans to continue investing in HTML5 games, focusing on light casual themes with long-term retention potential and a robust project pipeline, while further developing "One Step, Two Steps" for overseas promotion starting in Southeast Asia, establishing an overseas publishing center, and launching limited edition merchandise for the "Carrot Fantasy" IP - The company will continue to invest in HTML5 games, focusing on light casual themes with long-term retention potential[17](index=17&type=chunk) - "Carrot Fantasy 4" is a cornerstone of the platform expansion strategy, transitioning to an instant-play format to leverage the traffic advantages of super application ecosystems[17](index=17&type=chunk) - Further development of "One Step, Two Steps" will extend its lifespan, with overseas promotion commencing in the Southeast Asian market[17](index=17&type=chunk) - The company will continue to build its overseas publishing center, recruit professionals, expand local business networks, and localize its best-performing HTML5 games[17](index=17&type=chunk) - In H2 2025, limited edition A-Bo figurines and exquisite golden carrot collectible figurine series will be launched to celebrate the 13th anniversary of the "Carrot Fantasy" series[18](index=18&type=chunk) - Revenue for H1 2025 reached **RMB451.4 million**, a year-on-year increase of **343.6%**, primarily driven by the HTML5 game "One Step, Two Steps"[14](index=14&type=chunk) - Profit attributable to owners of the parent was **RMB57.5 million**, a significant turnaround from a loss of **RMB1.6 million** in the same period last year[14](index=14&type=chunk) - The HTML5 version of "Beast Transformation Three Kingdoms" was launched, quickly entering the top fifty best-selling WeChat mini-games[15](index=15&type=chunk) - "Neon Abyss 2," a sequel to the classic dungeon-crawling action game, debuted on Steam in July 2025, ranking 3rd on Steam China's hot-selling products list on its release day[15](index=15&type=chunk) - "Cat in Town" was launched on Meta's virtual reality platform, marking the company's entry into the emerging VR gaming sector[16](index=16&type=chunk) - A co-branding campaign with Yihetang for "Carrot Fantasy" was launched, introducing limited edition figurines and 36 new lifestyle products[16](index=16&type=chunk) [Interim Dividend](index=9&type=section&id=Interim%20Dividend) The Board did not declare an interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board did not declare an interim dividend for the six months ended June 30, 2025 (2024: nil)[19](index=19&type=chunk) [Financial Review](index=9&type=section&id=Financial%20Review) This section provides a detailed review of the company's financial performance for H1 2025, including game operation revenue, expenses, and profit changes, highlighting the success of the HTML5 game "One Step, Two Steps" as the main driver for significant revenue growth and a return to profitability, alongside a notable increase in sales and distribution expenses due to HTML5 game promotion, and a stable financial position with improved total equity and net current assets [Operating Data](index=9&type=section&id=Operating%20Data) In H1 2025, the company continued to operate well-known IPs like "Carrot Fantasy" and "Immortal Way," while heavily investing in HTML5 game R&D and publishing, with "One Step, Two Steps" performing exceptionally, and assessed its operational performance using key metrics such as MAU, MPU, and ARPPU, showing significant growth in HTML5 game MPU and ARPPU, despite a decline in MPU for some traditional games - The company continued to operate well-known IPs such as "Carrot Fantasy" and "Immortal Way," and invested in HTML5 game R&D and publishing[20](index=20&type=chunk) - The HTML5 game "One Step, Two Steps" entered its monetization cycle in H1 2025, contributing excellent revenue[20](index=20&type=chunk)[21](index=21&type=chunk) - The virtual reality game "Cat in Town" and the HTML5 game "Beast Transformation Three Kingdoms" were launched, with the latter ranking among the top fifty best-selling WeChat mini-games[20](index=20&type=chunk) Game Operation Revenue Breakdown (RMB thousand) | Game Category | 2025 H1 | % of Total Revenue | 2024 H1 | % of Total Revenue | | :--- | :--- | :--- | :--- | :--- | | Online Games | 5,158 | 1.1 | 5,414 | 5.3 | | Mobile Games - RPG | 47,125 | 10.4 | 37,755 | 37.1 | | Mobile Games - Casual Games | 39,684 | 8.8 | 38,458 | 37.8 | | PC Games | 525 | 0.1 | 960 | 1.0 | | HTML5 Games | 334,879 | 74.2 | 387 | 0.4 | | Console Games | 366 | 0.1 | 338 | 0.3 | | **Total** | **427,737** | **94.8** | **83,312** | **81.9** | - Game operation revenue significantly increased by approximately **413.4%** year-on-year to **RMB427.7 million**, primarily driven by "One Step, Two Steps"[21](index=21&type=chunk) Average MPU and ARPPU (2025 H1 vs 2024 H1) | Indicator | 2025 H1 | 2024 H1 | Change % | | :--- | :--- | :--- | :--- | | **Average MPU (thousands)** | | | | | Online Games (RPG) | 4 | 5 | (20.0) | | Mobile Games (RPG) | 39 | 60 | (35.0) | | Casual Games | 148 | 155 | (4.5) | | HTML5 | 167 | – | Not Applicable | | **ARPPU (RMB)** | | | | | Online Games (RPG) | 208.3 | 179.3 | 16.2 | | Mobile Games (RPG) | 200.9 | 104.9 | 91.5 | | Casual Games | 45.0 | 41.3 | 9.1 | | HTML5 | 334.3 | – | Not Applicable | - The average MPU for HTML5 games was approximately **167,000**, and ARPPU was approximately **RMB334.3**, primarily driven by "One Step, Two Steps" and other HTML5 games[24](index=24&type=chunk)[25](index=25&type=chunk) - The average MPU for online games and mobile RPGs decreased, and casual game MPU slightly declined, but ARPPU for all categories increased[24](index=24&type=chunk)[25](index=25&type=chunk) [Comparison of H1 2025 vs H1 2024](index=12&type=section&id=Comparison%20of%20H1%202025%20vs%20H1%202024) In H1 2025, the company's revenue grew by **343.6%** year-on-year to **RMB451.4 million**, primarily driven by the HTML5 game "One Step, Two Steps," with gross profit significantly increasing by **400.5%** and gross margin rising to **94.9%**, while sales and distribution expenses surged by **768.3%** due to HTML5 game promotion, resulting in a successful turnaround to a profit of **RMB56.5 million** for the period Comparison of Key Income Statement Items (RMB thousand) | Indicator | 2025 H1 | 2024 H1 | Change % | | :--- | :--- | :--- | :--- | | Revenue | 451,353 | 101,752 | 343.6 | | Cost of Sales | (23,029) | (16,165) | 42.5 | | Gross Profit | 428,324 | 85,587 | 400.5 | | Other Income and Gains | 7,851 | 8,597 | (8.7) | | Selling and Distribution Expenses | (314,420) | (36,213) | 768.3 | | Administrative Expenses | (21,913) | (19,711) | 11.2 | | Research and Development Costs | (32,435) | (27,152) | 19.5 | | Finance Costs | (1,790) | (2,153) | (16.9) | | Other Expenses | (7,925) | (13,212) | (40.0) | | Share of Profits/(Losses) of Associates | 14 | 2,622 | (99.5) | | Profit/(Loss) Before Tax | 57,706 | (1,635) | Not Applicable | | Income Tax Expense | (1,164) | (329) | 253.8 | | Profit/(Loss) for the Period | 56,542 | (1,964) | Not Applicable | | Profit/(Loss) Attributable to Owners of the Parent | 57,520 | (1,586) | Not Applicable | - Total revenue increased by **343.6%** to **RMB451.4 million** year-on-year, primarily driven by the HTML5 game "One Step, Two Steps" and other HTML5 games[29](index=29&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk) - Gross profit increased by **400.5%** to **RMB428.3 million**, with gross margin improving from **84.1%** to **94.9%**[33](index=33&type=chunk) - Selling and distribution expenses surged by **768.3%** to **RMB314.4 million**, mainly due to increased distribution expenses and channel fees for "One Step, Two Steps" and other HTML5 games[35](index=35&type=chunk) - Research and development costs increased by **19.5%** to **RMB32.4 million**, primarily due to increased investment in HTML5 game developers[37](index=37&type=chunk) - Profit for the period was **RMB56.5 million**, a strong reversal from a loss of **RMB2.0 million** in the same period last year[41](index=41&type=chunk) [Financial Position](index=15&type=section&id=Financial%20Position) As of June 30, 2025, the company's total equity increased by **11.4%** to **RMB537.8 million**, and net current assets grew by **44.4%** to **RMB102.5 million**, primarily due to profit for the period and operating cash inflows; cash and cash equivalents decreased due to office purchases, but the company maintains a diversified financial investment portfolio and a sound gearing ratio - As of June 30, 2025, total equity was approximately **RMB537.8 million**, an increase of approximately **11.4%** from December 31, 2024[42](index=42&type=chunk) - Net current assets were approximately **RMB102.5 million**, an increase of approximately **44.4%** from December 31, 2024, mainly due to increased net cash inflow from operating activities driven by "One Step, Two Steps"[42](index=42&type=chunk) - Total cash and cash equivalents were approximately **RMB79.9 million**, a decrease of **20.7%** from December 31, 2024, primarily due to the purchase of office units and parking spaces[43](index=43&type=chunk) - The gearing ratio (total liabilities divided by total assets) was **25.1%**, a decrease from **29.0%** as of December 31, 2024[71](index=71&type=chunk) - Total capital expenditure was approximately **RMB1.8 million**, a year-on-year increase of **484.9%**, mainly for the purchase of office equipment and company vehicles[72](index=72&type=chunk) [Liquidity and Financial Resources](index=16&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the company's total cash and cash equivalents were **RMB79.9 million**, a **20.7%** year-on-year decrease primarily due to office unit purchases, while holding approximately **RMB86.5 million** in bank loans and maintaining a prudent cash and financial management policy with funds denominated in RMB, HKD, and USD Cash and Cash on Hand (RMB thousand) | Indicator | June 30, 2025 | December 31, 2024 | Change % | | :--- | :--- | :--- | :--- | | Bank and Cash on Hand | 79,859 | 100,687 | (20.7) | | **Total** | **79,859** | **100,687** | **(20.7)** | - The decrease in cash and cash equivalents was mainly due to the purchase of office units and parking spaces in Chaoyang District, Beijing, for **RMB51.4 million** in June 2025[43](index=43&type=chunk) - The company held bank loans totaling approximately **RMB86.5 million**, of which approximately **RMB6.0 million** is repayable within one year[44](index=44&type=chunk) - Bank loans carried an annual interest rate of approximately **3.5%** and were secured by land use rights, investment properties, and buildings[44](index=44&type=chunk) [Significant Debt Investments at FVOCI, Equity Investments Designated at FVOCI, and Financial Assets at FVTPL](index=16&type=section&id=Significant%20Debt%20Investments%20at%20FVOCI%2C%20Equity%20Investments%20Designated%20at%20FVOCI%2C%20and%20Financial%20Assets%20at%20FVTPL) As of June 30, 2025, the company held approximately **RMB119.3 million** in financial assets, including ordinary bonds, unlisted equity investments, unlisted debt investments, and listed equity investments, with a diversified portfolio to mitigate risk and managed under effective capital and investment policies - As of June 30, 2025, the company held approximately **RMB119.3 million** in financial assets, including debt investments, equity investments, and financial assets[45](index=45&type=chunk) - The investment portfolio is diversified, with no less than **50%** allocated to risk-free or capital-protected investments and up to **50%** invested in low-risk products[46](index=46&type=chunk) Ordinary Bond Investment Performance (RMB thousand) | Ordinary Bond Name | Interest Income | Fair Value Change Gain/(Loss) | Fair Value as of June 30, 2025 | % of Total FVOCI and FVTPL Investments | | :--- | :--- | :--- | :--- | :--- | | CHINLP Medium Term Note Programme | 283 | 897 | 21,963 | 18.4% | | POLHON Guaranteed Notes | 402 | 795 | 19,735 | 16.5% | | NWDEVL Medium Term Note Programme | 566 | (3,015) | 12,057 | 10.1% | - The company remains optimistic about the future prospects of CHINLP bonds, as CLP Group maintains a stable and reliable energy supply in the Hong Kong market[50](index=50&type=chunk) - The company remains optimistic about the prospects of POLHON bonds, despite Poly Property's anticipated profit decline, given its solid contractual sales and cash collection rates in 2024[52](index=52&type=chunk) - The company closely and continuously monitors the performance of NWDEVL bonds, as New World Group faced losses due to changes in macroeconomic factors but has successfully refinanced[55](index=55&type=chunk)[56](index=56&type=chunk)[57](index=57&type=chunk) Unlisted Equity Investment Performance (RMB thousand) | Company Name | % of Equity | Fair Value Change Gain/(Loss) | Fair Value as of June 30, 2025 | % of Total FVOCI and FVTPL Investments | | :--- | :--- | :--- | :--- | :--- | | Xiamen Yiming Technology Co Ltd | 2% | (301) | 26,334 | 22.1% | | Others | – | (2,907) | 8,001 | 6.7% | - The company remains optimistic about the future performance of the China domain name service market and Yiming Technology, which has seen increases in both operating revenue and net profit[58](index=58&type=chunk)[59](index=59&type=chunk) Unlisted Debt Investment Performance (RMB thousand) | Company Name | % of Equity | Fair Value Change Gain/(Loss) | Fair Value as of June 30, 2025 | % of Total FVOCI and FVTPL Investments | | :--- | :--- | :--- | :--- | :--- | | Future Capital Discovery Fund II, L.P. | 1.8797% | 331 | 27,542 | 23.1% | | Others | – | (136) | 1,617 | 1.4% | - The company believes Future Capital's business prospects are optimistic, having recorded increased income and net increase in partners' capital, primarily due to returns realized from various investments[63](index=63&type=chunk)[64](index=64&type=chunk) Listed Equity Investment Performance (RMB thousand) | Company Name | % of Equity | Fair Value Change Gain | Fair Value as of June 30, 2025 | % of Total FVOCI and FVTPL Investments | | :--- | :--- | :--- | :--- | :--- | | Li Auto | – | 236 | 2,043 | 1.7% | - The company believes Li Auto's future business prospects are promising, with increases in revenue and net profit in Q1 2025, and a **15.5%** year-on-year growth in vehicle deliveries[67](index=67&type=chunk)[68](index=68&type=chunk) [Other Significant Investments, Major Acquisitions and Disposals of Subsidiaries, Associates, and Joint Ventures, and Future Plans for Significant Investments or Capital Assets](index=24&type=section&id=Other%20Significant%20Investments%2C%20Major%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%2C%20and%20Joint%20Ventures%2C%20and%20Future%20Plans%20for%20Significant%20Investments%20or%20Capital%20Assets) For the six months ended June 30, 2025, the company held no other significant investments, nor did it undertake major acquisitions or disposals of subsidiaries, associates, or joint ventures, with the Board continuing to seek new business development opportunities - For the six months ended June 30, 2025, no other significant investments were held, nor were there any major acquisitions or disposals of subsidiaries, associates, or joint ventures[70](index=70&type=chunk) - The Board has not approved plans for other significant investments or acquisitions of major capital assets or other businesses but will continue to identify new business development opportunities[70](index=70&type=chunk) [Gearing Ratio](index=24&type=section&id=Gearing%20Ratio) As of June 30, 2025, the Group's gearing ratio was **25.1%**, a decrease from **29.0%** as of December 31, 2024 - The gearing ratio was **25.1%**, a decrease from **29.0%** as of December 31, 2024[71](index=71&type=chunk) [Capital Expenditure](index=24&type=section&id=Capital%20Expenditure) For the six months ended June 30, 2025, total capital expenditure was approximately **RMB1.8 million**, a significant increase of **484.9%** from **RMB0.3 million** in the prior period, primarily for the purchase of office equipment and company vehicles Capital Expenditure (RMB thousand) | Indicator | 2025 H1 | 2024 H1 | Change % | | :--- | :--- | :--- | :--- | | Property, Plant and Equipment | 1,819 | 311 | 484.9% | | **Total** | **1,819** | **311** | **484.9%** | - The increase in capital expenditure was mainly attributable to increased purchases of office equipment and company vehicles[72](index=72&type=chunk) [Pledged Assets](index=24&type=section&id=Pledged%20Assets) As of June 30, 2025, bank loans of approximately **RMB86.5 million** were secured by land use rights, investment properties, and buildings with a total carrying value of approximately **RMB234.9 million**, used for operating the company's R&D center - Bank loans of approximately **RMB86.5 million** were secured by land use rights, investment properties, and buildings with a total carrying value of approximately **RMB234.9 million**[73](index=73&type=chunk) [Contingent Liabilities and Guarantees](index=24&type=section&id=Contingent%20Liabilities%20and%20Guarantees) As of June 30, 2025, the company had no unrecorded significant contingent liabilities, guarantees, or claims filed against it - As of June 30, 2025, the company had no unrecorded significant contingent liabilities, guarantees, or claims filed against it[74](index=74&type=chunk) [Employees and Remuneration Policy](index=25&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the company had **450** full-time employees, with **57.5%** engaged in development work, and its remuneration policy is based on performance, experience, and capabilities, offering bonuses, share-based payments, and retirement benefit schemes, while also providing training for professional development - As of June 30, 2025, the company had **450** full-time employees, mostly located in Xiamen, Fujian Province, China[75](index=75&type=chunk) Employees by Function (June 30, 2025) | Function | Number of Employees | % of Total | | :--- | :--- | :--- | | Development | 259 | 57.5 | | Operations | 111 | 24.7 | | Administration | 63 | 14.0 | | Sales and Marketing | 17 | 3.8 | | **Total** | **450** | **100.0** | - Remuneration packages include salaries, bonuses, allowances, equity-settled share-based payments, and state-managed retirement benefit schemes[75](index=75&type=chunk) - Directors' and senior management's remuneration is reviewed by the Remuneration Committee and approved by the Board, comprising salaries, bonuses, share options, restricted share units, and other benefits[75](index=75&type=chunk) Other Information and Corporate Governance Summary This section discloses the share interests of directors, chief executives, and substantial shareholders, outlines the company's share schemes, and confirms compliance with the Corporate Governance Code, noting that while the Chairman and CEO roles are combined, the Board deems this arrangement beneficial for business development, and also covers changes in directors' biographical details and the review of interim results [Directors' and Chief Executives' Interests in Shares, Underlying Shares, and Debentures of the Company or its Associated Corporations](index=26&type=section&id=Directors%27%20and%20Chief%20Executives%27%20Interests%20in%20Shares%2C%20Underlying%20Shares%2C%20and%20Debentures%20of%20the%20Company%20or%20its%20Associated%20Corporations) As of June 30, 2025, directors and chief executives including Yao Jianjun, Chen Jianyu, Bi Lin, and Lin Zhibin held long positions in the company's shares through discretionary trusts and controlled corporations, with Mr Yao Jianjun holding the highest percentage at approximately **28.13%** Directors' and Chief Executives' Long Positions in Shares (June 30, 2025) | Name of Director/Chief Executive | Capacity | Number of Ordinary Shares Held (Long Position) | Approximate % of Shareholding | | :--- | :--- | :--- | :--- | | Yao Jianjun | Founder of discretionary trust, interest in controlled corporation and beneficial owner | 492,115,000 | 28.13 | | Chen Jianyu | Founder of discretionary trust, interest in controlled corporation | 161,538,000 | 9.23 | | Bi Lin | Founder of discretionary trust, interest in controlled corporation | 77,470,000 | 4.43 | | Lin Zhibin | Founder of discretionary trust, interest in controlled corporation | 37,390,500 | 2.14 | - Mr Yao Jianjun's interests include **10,716,000** shares held directly and **481,399,000** shares held through YAO Holdings Limited[78](index=78&type=chunk) [Share Schemes](index=27&type=section&id=Share%20Schemes) The Post-IPO Share Option Scheme and Restricted Share Unit Scheme II were terminated on May 24, 2024, and the 2024 Share Option Scheme and 2024 Restricted Share Unit Scheme were adopted; as of June 30, 2025, no options or awards were granted under the new schemes, but **5,800,000** Post-IPO share options remained unexercised - The Post-IPO Share Option Scheme and Restricted Share Unit Scheme II were terminated on May 24, 2024[81](index=81&type=chunk) - The company adopted the 2024 Share Option Scheme and the 2024 Restricted Share Unit Scheme on May 24, 2024[81](index=81&type=chunk) - For the six months ended June 30, 2025, no share options or awards were granted under the new or old schemes[81](index=81&type=chunk)[166](index=166&type=chunk) Details of Outstanding Share Options (June 30, 2025) | Name | Grant Date | Vesting Schedule | Option Period | Exercise Price | Outstanding as of June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | Ms Xu Yiqing | March 27, 2017 | 25% each year from 2017-2020 | 10 years | HKD1.256 | 3,000,000 | | Ms Wei Yulan | March 27, 2017 | 25% each year from 2017-2020 | 10 years | HKD1.256 | 600,000 | | Nine other grantees | March 27, 2017 | 25% each year from 2017-2020 | 10 years | HKD1.256 | 2,200,000 | | **Total** | | | | | **5,800,000** | - The maximum number of shares that can be issued under the 2024 Share Option Scheme and other share schemes is **174,944,206** shares, representing **10%** of the total issued shares[84](index=84&type=chunk) - The 2024 Share Option Scheme is valid for **10 years**, effective from May 24, 2024[86](index=86&type=chunk) - The maximum number of shares under the 2024 Restricted Share Unit Scheme is the same as the Share Option Scheme, and it is also valid for **10 years**[88](index=88&type=chunk)[90](index=90&type=chunk) [Substantial Shareholders' and Other Persons' Interests in Shares and Underlying Shares](index=31&type=section&id=Substantial%20Shareholders%27%20and%20Other%20Persons%27%20Interests%20in%20Shares%20and%20Underlying%20Shares) As of June 30, 2025, TMF (Cayman) Ltd., as trustee of a family trust, held **46.74%** of the company's equity, Mr Yao Jianjun (through trusts and controlled corporations) held **28.13%**, and Tencent Holdings Limited indirectly held **14.97%** through its wholly-owned subsidiary Substantial Shareholders' Long Positions in Shares (June 30, 2025) | Name of Shareholder | Capacity | Number of Ordinary Shares Held (Long Position) | Approximate % of Shareholding | | :--- | :--- | :--- | :--- | | TMF (Cayman) Ltd. | Trustee of a family trust | 817,627,500 | 46.74 | | YAO Holdings Limited | Beneficial owner | 481,399,000 | 27.52 | | Jolly Spring International Limited | Interest in controlled corporation | 481,399,000 | 27.52 | | Mr Yao Jianjun | Founder of discretionary trust, interest in controlled corporation and beneficial owner | 492,115,000 | 28.13 | | Fishchen Holdings Limited | Beneficial owner | 161,538,000 | 9.23 | | Honour Gate Limited | Interest in controlled corporation | 161,538,000 | 9.23 | | Mr Chen Jianyu | Founder of discretionary trust, interest in controlled corporation | 161,538,000 | 9.23 | | Tencent Holdings Limited | Interest in controlled corporation | 261,882,607 | 14.97 | - Tencent Holdings Limited indirectly held **261,882,607** shares through its wholly-owned subsidiary THL H Limited[99](index=99&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=32&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) For the six months ended June 30, 2025, neither the company, its subsidiaries, nor any PRC operating entities purchased, sold, or redeemed any of the company's listed securities - For the six months ended June 30, 2025, neither the company, its subsidiaries, nor any PRC operating entities purchased, sold, or redeemed any of the company's listed securities[95](index=95&type=chunk) [Sufficiency of Public Float](index=32&type=section&id=Sufficiency%20of%20Public%20Float) As of the date of this interim report, the company has continuously maintained a sufficient public float in accordance with the Listing Rules for the six months ended June 30, 2025, and up to the date of this interim report - The company has continuously maintained a sufficient public float in accordance with the Listing Rules for the six months ended June 30, 2025, and up to the date of this interim report[96](index=96&type=chunk) [Compliance with Corporate Governance Code](index=32&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company is committed to maintaining high standards of corporate governance and has complied with all applicable code provisions of the Corporate Governance Code; despite the Chairman and CEO roles being held by Mr Yao Jianjun, the Board believes this arrangement is beneficial for business prospects and provides sufficient checks and balances - The company has complied with all applicable code provisions under the Corporate Governance Code for the six months ended June 30, 2025[97](index=97&type=chunk) - The roles of Chairman and Chief Executive Officer are combined and held by Mr Yao Jianjun, an arrangement the Board believes is suitable and beneficial to the Group's business prospects, providing strong and consistent leadership[97](index=97&type=chunk) [Board of Directors](index=33&type=section&id=Board%20of%20Directors) The Board of Directors currently consists of seven directors, including four executive directors and three independent non-executive directors, with no changes in Board membership for the six months ended June 30, 2025, and up to the date of this interim report - The Board of Directors currently consists of seven directors, including four executive directors and three independent non-executive directors[100](index=100&type=chunk) - There were no changes in the Board's membership for the six months ended June 30, 2025, and up to the date of this interim report[101](index=101&type=chunk) [Standard Code for Securities Transactions](index=33&type=section&id=Standard%20Code%20for%20Securities%20Transactions) The company has adopted the Standard Code as its code of conduct for directors' dealings in the company's securities and confirms that all Board members complied with the code for the six months ended June 30, 2025, with no instances of employee non-compliance identified - The company has adopted the Standard Code as its own code of conduct for directors' dealings in the company's securities[102](index=102&type=chunk) - All members of the Board complied with the Standard Code for the six months ended June 30, 2025[103](index=103&type=chunk) [Review of Interim Results](index=33&type=section&id=Review%20of%20Interim%20Results) The Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025, and deemed them properly prepared, with the company's external auditor, Ernst & Young, also having reviewed these interim results - The Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025, and considers them to have been properly prepared in accordance with relevant accounting standards[104](index=104&type=chunk) - The company's external auditor, Ernst & Young, has reviewed the Group's unaudited interim results for the six months ended June 30, 2025[105](index=105&type=chunk) [Changes in Directors' Biographical Details under Rule 13.51B(1) of the Listing Rules](index=33&type=section&id=Changes%20in%20Directors%27%20Biographical%20Details%20under%20Rule%2013.51B%281%29%20of%20the%20Listing%20Rules) Effective March 25, 2025, executive director Mr Yao Jianjun ceased to be a director of Xiamen Zhangxin Network Technology Co Ltd, while executive director Mr Bi Lin assumed the role of director for the same company - Effective March 25, 2025, executive director Mr Yao Jianjun ceased to be a director of Xiamen Zhangxin Network Technology Co Ltd[106](index=106&type=chunk) - Effective March 25, 2025, executive director Mr Bi Lin assumed the role of director of Xiamen Zhangxin Network Technology Co Ltd[106](index=106&type=chunk) Independent Review Report Ernst & Young conducted a review of Feiyu Technology's interim condensed consolidated financial information for the six months ended June 30, 2025, in accordance with Hong Kong Standard on Review Engagements 2410, concluding that nothing came to their attention to indicate that the interim financial information is not prepared, in all material respects, in accordance with International Accounting Standard 34 - Ernst & Young has reviewed the interim financial information in accordance with Hong Kong Standard on Review Engagements 2410, issued by the Hong Kong Institute of Certified Public Accountants[108](index=108&type=chunk) - The review concluded that nothing came to their attention to indicate that the interim financial information is not prepared, in all material respects, in accordance with International Accounting Standard 34[109](index=109&type=chunk) Interim Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, the company achieved revenue of **RMB451,353 thousand**, gross profit of **RMB428,324 thousand**, and a profit for the period of **RMB56,542 thousand**, successfully reversing the loss from the prior year, with basic and diluted earnings per share attributable to owners of the parent both at **RMB0.03** Interim Condensed Consolidated Statement of Profit or Loss (RMB thousand) | Indicator | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Revenue | 451,353 | 101,752 | | Cost of Sales | (23,029) | (16,165) | | Gross Profit | 428,324 | 85,587 | | Other Income and Gains | 7,851 | 8,597 | | Selling and Distribution Expenses | (314,420) | (36,213) | | Administrative Expenses | (21,913) | (19,711) | | Research and Development Costs | (32,435) | (27,152) | | Finance Costs | (1,790) | (2,153) | | Other Expenses | (7,925) | (13,212) | | Share of Profits/(Losses) of Associates | 14 | 2,622 | | Profit/(Loss) Before Tax | 57,706 | (1,635) | | Income Tax Expense | (1,164) | (329) | | Profit/(Loss) for the Period | 56,542 | (1,964) | | Profit/(Loss) Attributable to Owners of the Parent | 57,520 | (1,586) | | Non-controlling Interests | (978) | (378) | | Basic and Diluted Earnings/(Loss) Per Share Attributable to Ordinary Equity Holders of the Parent | RMB0.03 | RMB0.00 | Interim Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, the company reported a profit for the period of **RMB56,542 thousand** and other comprehensive loss of **RMB5,036 thousand**, resulting in a total comprehensive income for the period of **RMB51,506 thousand**, a significant increase from the total comprehensive income of **RMB3,620 thousand** in the prior year Interim Condensed Consolidated Statement of Comprehensive Income (RMB thousand) | Indicator | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Profit/(Loss) for the Period | 56,542 | (1,964) | | **Other Comprehensive Income** | | | | Debt investments at fair value through other comprehensive income: fair value change | (1,323) | (775) | | Exchange differences on translation of overseas operations | (505) | 821 | | Net other comprehensive income that may be reclassified to profit or loss in subsequent periods | (1,828) | 46 | | Equity investments designated at fair value through other comprehensive income: fair value change | (3,208) | 5,538 | | Net other comprehensive income that will not be reclassified to profit or loss in subsequent periods | (3,208) | 5,538 | | Other comprehensive income for the period, net of tax | (5,036) | 5,584 | | **Total Comprehensive Income for the Period** | **51,506** | **3,620** | | Attributable to owners of the parent | 52,487 | 3,997 | | Non-controlling interests | (981) | (377) | Interim Condensed Consolidated Statement of Financial Position As of June 30, 2025, the company's total assets were **RMB717,821 thousand**, a **5.5%** increase from December 31, 2024, with non-current assets growing by **4.5%** and current assets by **8.5%**, while total equity increased by **11.4%** to **RMB537,758 thousand** and current liabilities decreased by **15.2%** Interim Condensed Consolidated Statement of Financial Position (RMB thousand) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 58,942 | 58,624 | | Investment Properties | 203,534 | 154,498 | | Right-of-use Assets | 32,895 | 30,108 | | Goodwill | 11,427 | 11,427 | | Other Intangible Assets | 172 | 187 | | Investments in Associates | 14,356 | 14,562 | | Prepayments, Other Receivables and Other Assets | 15,050 | 17,963 | | Time Deposits | 70,000 | 90,000 | | Equity Investments Designated at Fair Value Through Other Comprehensive Income | 34,335 | 37,543 | | Debt Investments at Fair Value Through Other Comprehensive Income | 53,755 | 56,143 | | Financial Assets at Fair Value Through Profit or Loss | 29,159 | 30,300 | | Deferred Tax Assets | 323 | – | | **Total Non-current Assets** | **523,948** | **501,355** | | **Current Assets** | | | | Trade and Bills Receivables and Amounts Due from Third-Party Game Publishing Platforms and Payment Channels | 62,735 | 51,019 | | Prepayments, Other Receivables and Other Assets | 20,584 | 15,655 | | Other Current Assets | 8,652 | 9,551 | | Financial Assets at Fair Value Through Profit or Loss | 2,043 | 1,815 | | Cash and Cash Equivalents | 79,859 | 100,687 | | Time Deposits | 20,000 | – | | **Total Current Assets** | **193,873** | **178,727** | | **Current Liabilities** | | | | Other Payables and Accruals | 69,883 | 90,980 | | Interest-Bearing Bank Loans | 6,000 | 6,000 | | Lease Liabilities | 1,407 | – | | Tax Payable | 3,216 | 3,308 | | Contract Liabilities | 10,911 | 7,481 | | **Total Current Liabilities** | **91,417** | **107,769** | | **Net Current Assets** | **102,456** | **70,958** | | **Total Assets Less Current Liabilities** | **626,404** | **572,313** | | **Non-current Liabilities** | | | | Interest-Bearing Bank Loans | 80,500 | 83,500 | | Lease Liabilities | 1,993 | – | | Deferred Tax Liabilities | 3,205 | 2,917 | | Contract Liabilities | 2,948 | 3,316 | | **Total Non-current Liabilities** | **88,646** | **89,733** | | **Net Assets** | **537,758** | **482,580** | | **Total Equity** | **537,758** | **482,580** | Interim Condensed Consolidated Statement of Changes in Equity For the six months ended June 30, 2025, total equity attributable to owners of the parent amounted to **RMB525,981 thousand**, an increase from **RMB469,822 thousand** as of December 31, 2024, primarily driven by a profit for the period of **RMB57,520 thousand**, while changes in other comprehensive income had a negative impact on equity Interim Condensed Consolidated Statement of Changes in Equity (RMB thousand) | Indicator | Share Capital | Share Premium | Statutory Reserve | Equity-Settled Share-Based Payment Reserve | Other Reserves | Financial Assets Revaluation Reserve | Exchange Fluctuation Reserve | Accumulated Losses | Total Attributable to Owners of the Parent | Non-controlling Interests | Total Equity | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | As of December 31, 2024 (Audited) | 1 | 604,624 | 29,661 | 149,146 | 324,419 | (20,957) | 39,370 | (656,442) | 469,822 | 12,758 | 482,580 | | Profit for the Period | – | – | – | – | – | – | – | 57,520 | 57,520 | (978) | 56,542 | | Total Other Comprehensive Income for the Period | – | – | – | – | – | (4,531) | (502) | 57,520 | 52,487 | (981) | 51,506 | | Liquidation of a Subsidiary | – | – | – | – | 3,672 | – | – | – | 3,672 | – | 3,672 | | Transfer to Statutory Reserve | – | – | 2,084 | – | – | – | – | (2,084) | – | – | – | | As of June 30, 2025 (Unaudited) | 1 | 604,624 | 31,745 | 149,146 | 328,091 | (25,488) | 38,868 | (601,006) | 525,981 | 11,777 | 537,758 | Interim Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2025, net cash flow from operating activities was **RMB33,993 thousand**, a significant improvement from the net cash outflow of **RMB14,856 thousand** in the prior year, while net cash outflow from investing activities was **RMB50,303 thousand**, primarily due to purchases of investment properties and financial assets, with cash and cash equivalents at period-end totaling **RMB79,859 thousand** Interim Condensed Consolidated Statement of Cash Flows (RMB thousand) | Indicator | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Net Cash Flows From/(Used In) Operating Activities | 33,993 | (14,856) | | Net Cash Flows Used In Investing Activities | (50,303) | (49,507) | | Net Cash Flows Used In Financing Activities | (3,286) | (3,721) | | Net Decrease in Cash and Cash Equivalents | (19,596) | (68,084) | | Cash and Cash Equivalents at Beginning of Period | 100,687 | 160,678 | | Net Effect of Foreign Exchange Rate Changes | (1,232) | 318 | | Cash and Cash Equivalents at End of Period | 79,859 | 92,912 | - Net cash flow from operating activities turned from outflow to inflow, mainly due to profit before tax and an increase in trade receivables[121](index=121&type=chunk) - Net cash outflow from investing activities was primarily due to the purchase of investment properties (**RMB51,368 thousand**) and the purchase of financial assets at fair value through profit or loss (**RMB82,320 thousand**)[123](index=123&type=chunk) Notes to the Interim Condensed Consolidated Financial Information This section provides detailed notes to the interim condensed consolidated financial information, including the basis of preparation, changes in accounting policies, operating segment information, revenue and other income details, profit before tax composition, income tax expense, dividend policy, earnings per share calculation, changes and composition of various assets and liabilities, fair value measurement of financial instruments, and related party transactions, offering deeper explanations and supporting information for the financial statements [Basis of Preparation](index=43&type=section&id=Basis%20of%20Preparation) The interim condensed consolidated financial information is prepared in accordance with International 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 International Accounting Standard 34 "Interim Financial Reporting"[124](index=124&type=chunk) - It should be read in conjunction with the Group's annual consolidated financial statements for the year ended December 31, 2024[124](index=124&type=chunk) [Changes in Accounting Policies and Disclosures](index=43&type=section&id=Changes%20in%20Accounting%20Policies%20and%20Disclosures) The accounting policies adopted in preparing the interim condensed consolidated financial information are consistent with those applied in the 2024 annual consolidated financial statements, except for the initial adoption of the revised International Financial Reporting Standard 21 "Lack of Exchangeability," which had no impact on the financial information as all currencies in which the Group transacts are exchangeable - The accounting policies adopted are consistent with the 2024 annual consolidated financial statements, except for the initial adoption of the revised International Financial Reporting Standard 21 "Lack of Exchangeability"[125](index=125&type=chunk)[126](index=126&type=chunk) - As all currencies in which the Group transacts are exchangeable, these amendments had no impact on the interim condensed consolidated financial information[126](index=126&type=chunk) [Operating Segment Information](index=43&type=section&id=Operating%20Segment%20Information) No geographical segment information is presented as no single geographical area outside Mainland China accounted for **10%** or more of the Group's revenue or operating profit, and all identifiable assets and liabilities are located in Mainland China; furthermore, for the six months ended June 30, 2025, no sales revenue from a single customer accounted for **10%** or more of the Group's revenue - No geographical segment information is presented as no single geographical area outside Mainland China accounted for **10%** or more of the Group's revenue or operating profit, and all identifiable assets and liabilities are located in Mainland China[127](index=127&type=chunk) - For the six months ended June 30, 2025, no sales revenue from a single customer accounted for **10%** or more of the Group's revenue[128](index=128&type=chunk) [Revenue, Other Income and Gains](index=44&type=section&id=Revenue%2C%20Other%20Income%20and%20Gains) For the six months ended June 30, 2025, total revenue from contracts with customers was **RMB451,353 thousand**, with game operations accounting for **94.8%**, and total other income and gains were **RMB7,851 thousand**, primarily comprising interest income and operating lease income from investment properties Revenue Breakdown from Contracts with Customers (RMB thousand) | Type of Goods or Services | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Game Operations | 427,737 | 83,312 | | Online Game Publishing | 14 | 192 | | Licensing Income | 3,047 | 6,498 | | Advertising Revenue | 18,638 | 9,646 | | Sale of Goods | 1,870 | 2,096 | | Technical Service Income | 47 | 8 | | **Total Revenue from Contracts with Customers** | **451,353** | **101,752** | | **Timing of Revenue Recognition** | | | | Services transferred over time | 2,735 | 6,498 | | Services and goods transferred at a point in time | 448,618 | 95,254 | Other Income and Gains (RMB thousand) | Category | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Government Grants | 551 | 1,418 | | Interest Income | 2,348 | 2,970 | | Gross Rental Income from Operating Leases of Investment Properties | 3,076 | 3,152 | | **Total Other Income** | **5,975** | **7,540** | | Fair Value Gains on Financial Assets | 1,113 | 651 | | Other Gains | 763 | 406 | | **Total Other Income and Gains** | **7,851** | **8,597** | [Profit/(Loss) Before Tax](index=45&type=section&id=Profit%2F%28Loss%29%20Before%20Tax) The Group's profit before tax for the six months ended June 30, 2025, was **RMB57,706 thousand**, a reversal from a loss of **RMB1,635 thousand** in the prior year, with key adjustments including marketing costs, advertising expenses, depreciation, amortization, and fair value changes of investment properties Profit/(Loss) Before Tax Adjustment Items (RMB thousand) | Item | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Marketing Costs | 80,158 | 11,782 | | Advertising Expenses | 232,176 | 22,359 | | Depreciation of Property, Plant and Equipment | 1,501 | 1,387 | | Depreciation of Right-of-use Assets | 1,115 | 1,193 | | Amortization of Other Intangible Assets | 15 | 115 | | Net Fair Value Gains/(Losses) on Financial Assets at Fair Value Through Profit or Loss | (977) | 11,012 | | Net Fair Value Change of Investment Properties | 2,332 | 1,034 | | Loss on Disposal of a Subsidiary | 5,197 | – | [Income Tax Expense](index=46&type=section&id=Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense was **RMB1,164 thousand**, a **253.8%** increase from **RMB329 thousand** in the prior year, primarily due to the utilization of accumulated deductible losses by a subsidiary and changes in deferred tax expense resulting from fair value changes of investment properties and tax base changes - PRC subsidiaries are subject to income tax at a statutory rate of **25%**, except for those qualified as high-new technology enterprises, which enjoy a preferential tax rate of **15%**[133](index=133&type=chunk) Income Tax Expense (RMB thousand) | Category | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Current Tax | 1,199 | – | | Deferred Tax | (35) | 329 | | **Total Tax Expense for the Period** | **1,164** | **329** | - The increase in income tax expense was mainly attributable to the utilization of accumulated deductible losses by one of the subsidiaries, as well as changes in deferred tax expense due to fair value changes of investment properties and tax base changes[40](index=40&type=chunk) [Dividends](index=46&type=section&id=Dividends) The Board does not recommend the payment of an interim dividend to ordinary equity holders for the six months ended June 30, 2025, consistent with the prior year - The Board does not recommend the payment of an interim dividend to the ordinary equity holders of the company for the six months ended June 30, 2025 (2024: nil)[135](index=135&type=chunk) [Earnings Per Share Attributable to Ordinary Equity Holders of the Parent](index=47&type=section&id=Earnings%20Per%20Share%20Attributable%20to%20Ordinary%20Equity%20Holders%20of%20the%20Parent) For the six months ended June 30, 2025, both basic and diluted earnings per share attributable to ordinary equity holders of the parent were **RMB0.03**, compared to **RMB0.00** (loss) in the prior year Earnings Per Share Calculation (RMB thousand) | Indicator | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Profit/(Loss) attributable to ordinary equity holders of the parent used for basic EPS calculation | 57,520 | (1,586) | | Weighted average number of ordinary shares outstanding during the period used for basic EPS calculation | 1,749,442,062 | 1,749,415,977 | | Dilutive effect - weighted average number of ordinary shares: share options | – | – | | **Total** | **1,749,442,062** | **1,749,415,977** | - The amount of basic earnings per share is calculated based on the profit for the period attributable to ordinary equity holders of the parent and the weighted average number of ordinary shares outstanding during the period[136](index=136&type=chunk) [Property, Plant and Equipment](index=47&type=section&id=Property%2C%20Plant%20and%20Equipment) For the six months ended June 30, 2025, the Group's cost of additions to property, plant and equipment was **RMB1,819 thousand**, with depreciation of **RMB1,501 thousand**, and no disposals of property, plant and equipment during the period - The cost of additions to property, plant and equipment items was **RMB1,819 thousand** (2024: **RMB311 thousand**)[138](index=138&type=chunk) - Depreciation for the period was **RMB1,501 thousand** (2024: **RMB1,387 thousand**)[138](index=138&type=chunk) - For the six months ended June 30, 2025, there were no disposals of property, plant and equipment[138](index=138&type=chunk) [Investment Properties](index=48&type=section&id=Investment%20Properties) As of June 30, 2025, the carrying value of investment properties was **RMB203,534 thousand**, with additions of **RMB51,368 thousand** during the period and a net loss of **RMB2,332 thousand** from fair value adjustments; all investment properties are commercial properties located in Mainland China Changes in Carrying Value of Investment Properties (RMB thousand) | Item | June 30, 2025 | | :--- | :--- | | Carrying value as of January 1 | 154,498 | | Additions (from acquisitions) | 51,368 | | Net loss from fair value adjustments | (2,332) | | **Carrying value as of June 30** | **203,534** | - The Group's investment properties refer to commercial properties in Mainland China[139](index=139&type=chunk) [Leases](index=48&type=section&id=Leases) For the six months ended June 30, 2025, additions to right-of-use assets amounted to **RMB3,900 thousand**, and depreciation for the period was **RMB1,115 thousand** - Additions to right-of-use assets amounted to **RMB3,900 thousand** (2024: nil)[141](index=141&type=chunk) - Depreciation incurred during the period was **RMB1,115 thousand** (2024: **RMB1,193 thousand**)[141](index=141&type=chunk) [Goodwill](index=48&type=section&id=Goodwill) As of June 30, 2025, and December 31, 2024, the net carrying value of goodwill remained at **RMB11,427 thousand**, with a cost of **RMB432,278 thousand** and accumulated impairment of **RMB420,851 thousand** Carrying Value of Goodwill (RMB thousand) | Item | Amount | | :--- | :--- | | Cost | 432,278 | | Accumulated Impairment | (420,851) | | **Net Carrying Value** | **11,427** | [Other Intangible Assets](index=49&type=section&id=Other%20Intangible%20Assets) For the six months ended June 30, 2025, the Group did not acquire any intangible assets, amortization for the period was **RMB15 thousand**, and there were no disposals of intangible assets - For the six months ended June 30, 2025, the Group did not acquire any intangible assets[143](index=143&type=chunk) - Amortization of intangible assets for the period was **RMB15 thousand** (2024: **RMB115 thousand**)[143](index=143&type=chunk) - For the six months ended June 30, 2025 and 2024, there were no disposals of intangible assets[144](index=144&type=chunk) [Investments in Associates](index=49&type=section&id=Investments%20in%20Associates) As of June 30, 2025, the carrying value of investments in associates was **RMB14,356 thousand**, comprising a share of net assets of **RMB3,161 thousand** and goodwill on acquisition of **RMB11,195 thousand**, with a share of profit from associates of **RMB14 thousand** for the period Investments in Associates (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Share of Net Assets | 3,161 | 3,367 | | Goodwill on Acquisition | 11,195 | 11,195 | | **Total** | **14,356** | **14,562** | - For the six months ended June 30, 2025, the share of profit from associates for the period was **RMB14 thousand** (2024: **RMB2,622 thousand**)[145](index=145&type=chunk) [Trade and Bills Receivables and Amounts Due from Third-Party Game Publishing Platforms and Payment Channels](index=50&type=section&id=Trade%20and%20Bills%20Receivables%20and%20Amounts%20Due%20from%20Third-Party%20Game%20Publishing%20Platforms%20and%20Payment%20Channels) As of June 30, 2025, trade and bills receivables and amounts due from third-party game publishing platforms and payment channels totaled **RMB62,735 thousand**, primarily comprising amounts due within three months, with the company maintaining strict control over outstanding receivables and holding no collateral for these balances, and loss allowances deemed insignificant - The credit period granted to customers by the Group generally ranges from one to three months[146](index=146&type=chunk) Ageing Analysis of Receivables (RMB thousand) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within three months | 62,735 | 51,019 | - Impairment analysis is performed using a provision matrix at each reporting date, and loss allowances are deemed insignificant[147](index=147&type=chunk) [Prepayments, Other Receivables and Other Assets](index=51&type=section&id=Prepayments%2C%20Other%20Receivables%20and%20Other%20Assets) As of June 30, 2025, net non-current prepayments, other receivables, and other assets amounted to **RMB15,050 thousand**, with the current portion totaling **RMB20,584 thousand**, for a grand total of **RMB35,634 thousand** Prepayments, Other Receivables and Other Assets (RMB thousand) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Non-current** | | | | Prepayments | 6,598 | 7,321 | | Deposits related to prepaid land lease payments | 1,605 | 1,605 | | Other receivables | 15,964 | 18,165 | | Deposits | 95 | 84 | | Impairment allowance | (9,212) | (9,212) | | **Total Non-current** | **15,050** | **17,963** | | **Current** | | | | Prepayments | 8,795 | 7,826 | | Investment property rental income | 4,716 | 3,908 | | Deposits | 308 | 237 | | Other receivables | 24,057 | 20,984 | | Impairment allowance | (17,292) | (17,300) | | **Total Current** | **20,584** | **15,655** | [Debt Investments at FVOCI, Equity Investments Designated at FVOCI, and Financial Assets at FVTPL](index=52&type=section&id=Debt%20Investments%20at%20FVOCI%2C%20Equity%20Investments%20Designated%20at%20FVOCI%2C%20and%20Financial%20Assets%20at%20FVTPL) As of June 30, 2025, the company held total financial assets of **RMB119,292 thousand**, comprising debt investments at fair value through other comprehensive income (**RMB53,755 thousand**), equity investments designated at fair value through other comprehensive income (**RMB34,335 thousand**), and financial assets at fair value through profit or loss (**RMB31,202 thousand**) Financial Assets Details (RMB thousand) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Debt investments at fair value through other comprehensive income (ordinary bonds) | 53,755 | 56,143 | | Equity investments designated at fair value through other comprehensive income (unlisted) | 34,335 | 37,543 | | Financial assets at fair value through profit or loss (unlisted debt investments) | 29,159 | 30,300 | | Financial assets at fair value through profit or loss (listed equity investments) | 2,043 | 1,815 | | **Total** | **119,292** | **125,801** | - Debt investments at fair value through other comprehensive income are debt investments intended to be held indefinitely and may be sold due to liquidity needs or changes in market conditions[151](index=151&type=chunk) - Unlisted equity investments are strategic in nature and irrevocably designated at fair value through other comprehensive income[154](index=154&type=chunk) - Listed equity investments are classified as financial assets at fair value through profit or loss because they are held for trading[154](index=154&type=chunk) [Cash and Cash Equivalents](index=53&type=section&id=Cash%20and%20Cash%20Equivalents) As of June 30, 2025, total cash and cash equivalents amounted to **RMB79,859 thousand**, primarily denominated in RMB, USD, and HKD, with RMB not freely convertible but exchangeable through authorized banks Cash and Cash Equivalents (RMB thousand) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and bank balances | 76,608 | 97,420 | | Time deposits | 3,251 | 3,267 | | **Cash and Cash Equivalents** | **79,859** | **100,687** | | Denominated in RMB | 66,837 | 88,295 | | Denominated in USD | 6,413 | 7,942 | | Denominated in HKD | 5,730 | 4,166 | | Denominated in SGD | 879 | 284 | - RMB is not freely convertible into other currencies, but the Group is permitted to convert RMB into other currencies through banks authorized to conduct foreign exchange business[153](index=153&type=chunk) [Time Deposits](index=54&type=section&id=Time%20Deposits) As of June 30, 2025, total time deposits amounted to **RMB90,000 thousand**, including current and non-current portions, with fixed annual interest rates ranging from **2.15%** to **3.25%** and maturity dates from January 2026 to January 2027 Time Deposits (RMB thousand) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Time deposits | 90,000 | 90,000 | - Current time deposits of **RMB10,000,000** bear a fixed annual interest rate of **3.25%** and mature in May 2026[155](index=155&type=chunk) - Non-current time deposits of **RMB30,000,000** bear a fixed annual interest rate of **2.85%** and mature in November 2026[155](index=155&type=chunk) [Other Payables and Accruals](index=54&type=section&id=Other%20Payables%20and%20Accruals) As of June 30, 2025, total other payables and accruals amounted to **RMB69,883 thousand**, a decrease from **RMB90,980 thousand** as of December 31, 2024, primarily comprising salaries and welfare payable, other payables and accruals, other taxes payable, and advances from customers Other Payables and Accruals (RMB thousand) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Salaries and welfare payable | 28,934 | 42,641 | | Other payables and accruals | 35,012 | 42,473 | | Other taxes payable | 4,795 | 5,322 | | Advances from customers | 1,142 | 544 | | **Total** | **69,883** | **90,980** | [Interest-Bearing Bank Loans](index=55&type=section&id=Interest-Bearing%20Bank%20Loans) As of June 30, 2025, total interest-bearing bank loans amounted to **RMB86,500 thousand**, with **RMB6,000 thousand** as current loans and **RMB80,500 thousand** as non-current loans, bearing an effective annual interest rate of **3.50%** and secured by the headquarters building, investment properties, and leased land Interest-Bearing Bank Loans (RMB thousand) | Category | Effective Interest Rate (%) | Maturity | June 30, 2025 | Effective Interest Rate (%) | Maturity | December 31, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Current** | | | | | | | | Bank loans - secured | 3.50 | 2025 | 6,000 | 3.60 | 2025 | 6,000 | | **Non-current** | | | | | | | | Bank loans - secured | 3.50 | 2025 to 2038 | 80,500 | 3.60 | 2025 to 2038 | 83,500 | | **Total** | | | **86,500** | | | **89,500** | - The Group's headquarters building, investment properties, and leased land are pledged as collateral for the long-term loan financing obtained by the Group[157](index=157&type=chunk) [Contract Liabilities](index=56&type=section&id=Contract%20Liabilities) As of June 30, 2025, total contract liabilities amounted to **RMB13,859 thousand**, primarily comprising unspent virtual currency and virtual items prepaid by players, as well as upfront revenue sharing and remaining upfront licensing fees from game distribution platforms for online game services Contract Liabilities (RMB thousand) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Current Advances Received** | | | | Online network and mobile games | 9,497 | 5,970 | | Licensing income | 1,414 | 1,511 | | **Non-current Advances Received** | | | | Licensing income | 2,948 | 3,316 | | **Total Contract Liabilities** | **13,859** | **10,797** | - Contract liabilities primarily refer to unspent virtual currency and virtual items prepaid by players, as well as upfront revenue sharing and remaining upfront licensing fees from

INTERIM REPORT 2025 中期報告 2025 TRIGIANT GROUP LIMITED 俊知集團有限公司 俊知集團有限公司 二零二五年中期報告 目 錄 公司資料 2 摘要 4 簡明綜合財務報表審閱報告 5 簡明綜合損益及其他全面收益表 6 簡明綜合財務狀況表 7 簡明綜合權益變動表 8 簡明綜合現金流量表 9 簡明綜合財務報表附註 10 管理層討論及分析 22 其他資料 32 俊知集團有限公司 - 二零二五年中期報告 公司資料 執行董事 錢利榮 （主席及集團行政總裁） 錢晨輝 非執行董事 張冬杰 獨立非執行董事 金曉峰教授 趙煥琪 邱惠 審核委員會 邱惠 （主席） 金曉峰教授 趙煥琪 薪酬委員會 金曉峰教授 （主席） 錢晨輝 邱惠 提名委員會 金曉峰教授 （主席） 趙煥琪 邱惠 企業管治委員會 錢晨輝 （主席） 趙煥琪 邱惠 公司秘書 李耀威 於中華人民共和國（「中國」）之總部及 主要營業地點 中國 江蘇省 宜興市 環保科技工業園 俊知路1號 公司網站 www.trigiant.com.hk 港交所股份代號 於本報告中，標有「*」的中文之英文譯名僅供識別。於中華人民共和 國成立的實體之中英文 ...

本中期報告的中、英文版本已登載於本公司網站www.conchventure.com（「本公司網站」）。已選擇 或被視為同意透過本公司網站收取本公司的公司通訊（「公司通訊」）的股東，如因任何理由在收取或 下載於本公司網站登載的公司通訊有任何困難，只要提出要求，均可立刻獲免費發送公司通訊的印 刷本。 股東可隨時更改收取公司通訊的方式的選擇（即收取公司通訊的印刷本，或透過本公司網站取得公 司通訊）。 股東可於任何時間以書面通知本公司的股份過戶登記處香港中央證券登記有限公司，地址為香港灣 仔皇后大道東183號合和中心17樓1712–1716室提出收取本中報的要求及╱或更改收取公司通訊的 方式的選擇。 目 錄 | 釋義 | 2 | | --- | --- | | 一、公司資料 | 4 | | 二、財務資料摘要 | 6 | | 三、業務回顧及展望 | 7 | | 四、管理層討論及分析 | 20 | | 五、其他資料 | 30 | | 六、未經審核中期財務報告 | 38 | 2 中國海螺創業控股有限公司 釋義 本報告中，除非文義另有所指，下列詞語具有如下意義： | 安徽海創集團： | 安徽海創集團股份有限公司 | | -- ...

FUTURE DATA GROUP LIMITED 未 來 數 據 集 團 有 限 公 司 股份代號：8229 (於開曼群島註冊成立的有限公司) 2025 中期報告 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM 的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在聯交所上市的公司帶有較高 投資風險。有意投資的人士應了解投資於該等公司的潛在風險，並應經過審慎周詳的考慮後方作出投資決定。 由於 GEM 上市公司普遍為中小型公司，在 GEM 買賣的證券可能會較於主板買賣的證券承受較大的市場 波動風險，同時無法保證在 GEM 買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，對其準確性或完整性亦不發表任何聲明， 並明確表示，概不就因本報告全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何 於責任。 目錄 | 公司資料 | 3 | | --- | --- | | 財務摘要 | 5 | | 簡明綜合損益及其他全面收益表 | 6 | | 簡明綜合財務狀況表 | 8 | | 簡明綜合權益變動表 | 10 | | 簡明綜合現金流量表 | 11 | | 簡 ...