香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因依賴該等內容 而引致之任何損失承擔任何責任。 （於中華人民共和國註冊成立之股份有限公司） （股份代號：1708） 截至二零二五年六月三十日止六個月 未經審核中期業績公告 財務摘要 截至二零二五年六月三十日止六個月期間的每股基本虧損約為人民幣0.015元（二零二四年同期： 每股基本虧損約為人民幣0.020元）。 建議不派付截至二零二五年六月三十日止六個月之中期股息。 1 未經審核中期業績 南京三寶科技股份有限公司（「本公司」）董事會（「董事會」）公佈本公司及其附屬公司（統稱「本集團」）截 至二零二五年六月三十日止六個月的未經審核綜合業績，連同截至二零二四年的比較數字如下： （除特別註明外，於本公告中，本公司的財務資料均以人民幣（「人民幣」）元列示。） 合併資產負債表 於二零二五年六月三十日 截至二零二五年六月三十日止六個月期間（「回顧期」），本集團的營業總收入約為人民幣 166,439,568.86元，較去年同期下降約24.19%。 截至二零二五年六月 ...

[Company Information and Key Dates](index=4&type=section&id=Company%20Information%20and%20Key%20Dates) This section provides essential corporate details, including board composition, committee structures, senior advisory roles, and critical financial dates and contact information [Board of Directors](index=4&type=section&id=Board%20of%20Directors) The Board of Directors is led by Chairman and Managing Director Mr. Victor T.K. Li, with diverse representation including Deputy Managing Directors, Vice Chairman, Executive Directors, and Independent Non-Executive Directors - Chairman and Managing Director is **Victor T.K. Li**[6](index=6&type=chunk) - Board members include Deputy Managing Director Kam Hing Lam, Vice Chairman Ip Tak Chuen, several Executive Directors, and Independent Non-Executive Directors[6](index=6&type=chunk) [Committees and Senior Advisor](index=4&type=section&id=Committees%20and%20Senior%20Advisor) The company has an Audit Committee, Remuneration Committee, Nomination Committee, and Sustainability Committee, with Mr. Li Ka-shing serving as Senior Advisor providing strategic guidance and oversight - Mr. Li Ka-shing serves as Senior Advisor[7](index=7&type=chunk) - Committees include the Audit Committee (Chairman: Albert T.Y. Cheung), Remuneration Committee (Chairman: Hon. Helen P.W. Hong), Nomination Committee (Chairman: Barnaby L.B. St. P. Roberts), and Sustainability Committee (Chairman: Ip Tak Chuen)[7](index=7&type=chunk) [Key Dates and Contact Information](index=4&type=section&id=Key%20Dates%20and%20Contact%20Information) The report lists interim results announcement, interim dividend record and payment dates, along with company stock codes, website, principal place of business, and share registrar 2025 Key Dates | Event | Date | | :--- | :--- | | Interim Results Announcement | August 14, 2025 | | Interim Dividend Record Date | September 16, 2025 | | Interim Dividend Payment | September 25, 2025 | - Company stock codes are **HKEX 1113**, **Bloomberg 1113 HK**, and **Reuters 1113.HK**[7](index=7&type=chunk) - Principal place of business is **7/F, Cheung Kong Center, 2 Queen's Road Central, Hong Kong**[8](index=8&type=chunk) [Chairman's Business Report](index=5&type=section&id=Chairman%27s%20Business%20Report) This report provides an overview of the company's performance, strategic initiatives, sustainability efforts, and future outlook amidst global economic complexities [Performance Summary and Interim Dividend](index=5&type=section&id=Performance%20Summary%20and%20Interim%20Dividend) For the six months ended June 30, 2025, profit before revaluation of investment properties increased by 1.6% year-on-year, but profit attributable to shareholders decreased by 26.2% due to a loss from investment property revaluation, with the interim dividend maintained at HKD 0.39 per share 2025 Half-Year Performance Summary | Metric | 2025 (HKD Million) | 2024 (HKD Million) | Change | | :--- | :--- | :--- | :--- | | Profit before revaluation of investment properties | 6,805 | 6,726 | +1.6% | | Revaluation of investment properties (net of tax and non-controlling interests) | (503) | 1,877 | - | | Profit attributable to shareholders | 6,302 | 8,603 | -26.2% | | Interim Dividend (per share in HKD) | 0.39 | 0.39 | – | - Earnings per share decreased from **HKD 2.44 in 2024 to HKD 1.80 in 2025**[10](index=10&type=chunk) - Interim dividend maintained at **HKD 0.39 per share**, payable on September 25, 2025[11](index=11&type=chunk) [Business Review](index=6&type=section&id=Business%20Review) In the first half, the company expanded its social infrastructure investment portfolio and participated in infrastructure projects to enhance diversified recurring income amidst global economic uncertainty, while property sales revenue increased but profit decreased, and other segments saw mixed performance - The Group adheres to strict financial discipline, expanding its social infrastructure investment portfolio to strengthen its diversified recurring income base[12](index=12&type=chunk) - Property sales revenue increased, but related profit decreased due to a weak market and discounts offered[13](index=13&type=chunk) - Property leasing revenue and profit slightly decreased, affected by the weak retail and commercial property markets in Hong Kong[14](index=14&type=chunk) - Hotel and serviced suite business revenue saw moderate growth, but profit slightly decreased due to industry cost pressures and lower average room rates[16](index=16&type=chunk) - Pub business revenue and profit both increased compared to the same period last year, despite operating cost pressures and changing consumer habits[17](index=17&type=chunk) - Infrastructure and utility assets business recorded robust growth in revenue and profit, maintaining an appropriate gearing ratio and resilience against inflation and high interest rates[18](index=18&type=chunk) - A joint venture agreed to sell all interests in Eversholt UK Rails, with the transaction expected to complete in several months[19](index=19&type=chunk) [Sustainability](index=8&type=section&id=Sustainability) The company actively addresses climate change risks, having achieved Science Based Targets initiative (SBTi) certification and committing to a net-zero transition plan, with property development projects consistently winning green building awards - The Group has obtained Science Based Targets initiative (SBTi) certification for its short-term emission reduction targets and net-zero targets[20](index=20&type=chunk) - Greene King also received SBTi recognition for its 2040 net-zero target and re-certification for its short-term target of halving greenhouse gas emissions by 2030[20](index=20&type=chunk) - Cheung Kong Center II was awarded the Final Platinum rating under BEAM Plus New Buildings (Version 2.0), and Perfect Ten received a Five-Star Award at the Asia Pacific Property Awards[20](index=20&type=chunk) [Outlook](index=8&type=section&id=Outlook) Facing a complex global economic environment, the company will maintain a solid and diversified investment and asset portfolio, leveraging its financial strength and low gearing ratio to seize market opportunities, drive long-term development, and deliver stable shareholder returns - The global economic environment is complex and volatile, influenced by geopolitical conflicts, policy changes, and trade tensions[21](index=21&type=chunk) - Mainland China's economy continues to improve, with **GDP growing 5.3% year-on-year** in the first half, while Hong Kong's real GDP rose approximately **3% year-on-year** in the first half[21](index=21&type=chunk)[23](index=23&type=chunk) - The Group will maintain a solid and diversified investment portfolio, with a net debt to total capital ratio of approximately **5.0%**, and credit ratings of "A / Stable" from S&P and "A2 Stable" from Moody's[23](index=23&type=chunk) [Management Discussion and Analysis](index=10&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a detailed review of the company's operational performance across key business segments, financial position, and risk management strategies [Business Review](index=10&type=section&id=Business%20Review) This section details the company's performance across its main business segments in the first half of 2025, including property sales, leasing, hotels, property management, pub operations, and infrastructure assets, providing key financial data and business updates [Principal Business Activities](index=10&type=section&id=Principal%20Business%20Activities) The company lists property projects completed and expected to be completed in 2025, and updated its US$5 billion Euro Medium Term Note Programme to support future development - Completed and expected property projects include **The Coastline II** and **Blue Coast** in Hong Kong, **Perfect Ten** in Singapore, and multiple projects in Mainland China (Shanghai, Chongqing, Dongguan, Dalian, Guangzhou, Huizhou, Wuhan) and London[26](index=26&type=chunk) - The **US$5 billion Euro Medium Term Note Programme** was updated and listed on the Hong Kong Stock Exchange on June 23, 2025[27](index=27&type=chunk) [Property Sales](index=11&type=section&id=Property%20Sales) Half-year property sales revenue significantly increased to HKD 7.366 billion, primarily from projects in Hong Kong, Mainland China, and overseas, but sales profit decreased due to market weakness and discounts Half-Year Property Sales Revenue (including share of joint ventures) | Region | 2025 (HKD Million) | 2024 (HKD Million) | | :--- | :--- | :--- | | Hong Kong | 2,803 | 2,601 | | Mainland China | 3,827 | 1,761 | | Overseas | 736 | 273 | | **Total** | **7,366** | **4,635** | Half-Year Property Sales Profit | Region | 2025 (HKD Million) | 2024 (HKD Million) | | :--- | :--- | :--- | | Hong Kong | 74 | 1,044 | | Mainland China | 1,469 | 710 | | Overseas | 225 | 67 | | **Total** | **1,768** | **1,821** | - Property sales revenue increased year-on-year, but sales profit decreased, mainly due to lower profit margins from discounts offered in a weak market[29](index=29&type=chunk) - As of June 30, 2025, total contracted but unrecognised property sales amounted to **HKD 28.553 billion**, with Hong Kong accounting for **HKD 22.102 billion**[30](index=30&type=chunk) - The Group holds a land bank of approximately **67 million sq ft** for development, including **6 million sq ft in Hong Kong**, **58 million sq ft in Mainland China**, and **3 million sq ft overseas**[30](index=30&type=chunk) [Property Leasing](index=13&type=section&id=Property%20Leasing) Half-year property leasing revenue and profit both decreased year-on-year, primarily due to the termination of rental income from Shanghai Meilongzhen Plaza in Mainland China and a quiet retail and office leasing market in Hong Kong Half-Year Property Leasing Revenue (including share of joint ventures) | Property Use | 2025 (HKD Million) | 2024 (HKD Million) | | :--- | :--- | :--- | | Retail | 859 | 971 | | Office | 871 | 890 | | Industrial | 386 | 385 | | Social Infrastructure | 671 | 648 | | Other | 215 | 224 | | **Total** | **3,002** | **3,118** | Half-Year Property Leasing Profit | Region | 2025 (HKD Million) | 2024 (HKD Million) | | :--- | :--- | :--- | | Hong Kong | 1,745 | 1,816 | | Mainland China | 78 | 139 | | Overseas | 492 | 489 | | **Total** | **2,315** | **2,444** | - Property leasing revenue and profit decreased, mainly due to the termination of rental income from Shanghai Meilongzhen Plaza in Mainland China and the continued quiet retail and office leasing markets in Hong Kong[31](index=31&type=chunk) - The Group holds an investment property portfolio of approximately **22.4 million sq ft** and recorded a fair value decrease of **HKD 542 million** (2024: increase of HKD 1.42 billion) for investment properties[33](index=33&type=chunk) [Hotel and Serviced Suite Business](index=14&type=section&id=Hotel%20and%20Serviced%20Suite%20Business) Half-year hotel and serviced suite business revenue slightly increased to HKD 2.192 billion, with average occupancy rates of 89% and 88% respectively, but profit was slightly lower than the prior year due to reduced per capita spending - Half-year hotel and serviced suite business revenue was **HKD 2.192 billion** (2024: HKD 2.130 billion), recording a slight increase[34](index=34&type=chunk) - Average occupancy rates for hotels and serviced suites during the period were **89% and 88%** respectively[34](index=34&type=chunk) Half-Year Hotel and Serviced Suite Business Profit | Region | 2025 (HKD Million) | 2024 (HKD Million) | | :--- | :--- | :--- | | Hong Kong | 816 | 853 | | Mainland China | (22) | (30) | | **Total** | **794** | **823** | [Property and Project Management](index=15&type=section&id=Property%20and%20Project%20Management) Half-year property and project management revenue remained stable compared to the prior year, with a slight increase in profit, as the Group manages approximately 248 million sq ft of properties primarily in Hong Kong and Mainland China - Half-year property and project management revenue was **HKD 444 million** (2024: HKD 445 million), remaining largely stable[35](index=35&type=chunk) Half-Year Property and Project Management Profit | Region | 2025 (HKD Million) | 2024 (HKD Million) | | :--- | :--- | :--- | | Hong Kong | 134 | 143 | | Mainland China | 22 | 20 | | Overseas | 26 | 17 | | **Total** | **182** | **180** | - The Group manages approximately **248 million sq ft** of properties, primarily located in Hong Kong and Mainland China[35](index=35&type=chunk) [Pub Business](index=15&type=section&id=Pub%20Business) Half-year pub business revenue increased to HKD 12.524 billion, with profit also rising, driven by price adjustments and local currency appreciation, despite challenges from weak consumer confidence and high labor costs - Half-year pub business revenue was **HKD 12.524 billion** (2024: HKD 11.823 billion), an increase of **HKD 701 million** year-on-year[36](index=36&type=chunk) - Profit was **HKD 629 million** (2024: HKD 597 million), showing an increase[37](index=37&type=chunk) - Revenue growth was primarily driven by **price adjustments and local currency appreciation**[36](index=36&type=chunk) [Infrastructure and Utility Assets Business](index=17&type=section&id=Infrastructure%20and%20Utility%20Assets%20Business) The Group's infrastructure and utility assets investment portfolio continued to provide stable recurring income, with half-year share of joint ventures' revenue growing to HKD 13.598 billion and profit steadily increasing to HKD 4.576 billion Half-Year Group's Share of Joint Ventures' Revenue | Project | 2025 (HKD Million) | 2024 (HKD Million) | | :--- | :--- | :--- | | CK William JV | 2,482 | 2,366 | | CKP (Canada) JV | 2,356 | 2,325 | | ista JV | 3,791 | 3,467 | | UK Power Networks JV | 2,028 | 1,835 | | Northumbrian Water JV | 1,536 | 1,337 | | Dutch Enviro Energy JV | 397 | 342 | | Wales & West Utilities JV | 668 | 590 | | UK Rails JV | 340 | 314 | | **Total** | **13,598** | **12,576** | Half-Year Profit (by Region) | Region | 2025 Total (HKD Million) | 2024 Total (HKD Million) | | :--- | :--- | :--- | | Australia | 589 | 720 | | Europe | 3,281 | 3,281 | | North America | 706 | 732 | | **Total** | **4,576** | **4,098** | - The infrastructure and utility assets business continues to provide stable recurring income, with its business revenue and related assets resilient against macroeconomic changes such as inflation and high interest rates[18](index=18&type=chunk) [Interests in Real Estate Investment Trusts](index=19&type=section&id=Interests%20in%20Real%20Estate%20Investment%20Trusts) The Group holds interests in Hui Xian REIT, Fortune REIT, and Prosperity REIT, reporting a share of Hui Xian REIT's net profit of HKD 77 million and receiving distributions of HKD 107 million from Fortune and Prosperity REITs, with an increase in investment fair value - The Group holds interests of **35.4% in Hui Xian REIT**, **25.7% in Fortune REIT**, and **17.6% in Prosperity REIT**[41](index=41&type=chunk) - Half-year share of Hui Xian REIT's net profit was **HKD 77 million** (2024: loss of HKD 4 million)[41](index=41&type=chunk) - Distributions received from Fortune REIT and Prosperity REIT amounted to **HKD 107 million** (2024: HKD 113 million)[41](index=41&type=chunk) - Investments in Fortune REIT and Prosperity REIT recorded a fair value increase of **HKD 475 million** (2024: decrease of HKD 634 million)[41](index=41&type=chunk) [Financial Overview](index=20&type=section&id=Financial%20Overview) The company maintains a robust financial position with net debt of approximately HKD 21.4 billion and a net debt to total capital ratio of about 5%, employing prudent financial policies including hedging tools to manage foreign exchange and interest rate risks - As of the interim balance sheet date, the Group's total bank and other borrowings amounted to **HKD 54.4 billion**, an increase of **HKD 1.7 billion** compared to December 31, 2024[42](index=42&type=chunk) - After accounting for bank balances and time deposits of **HKD 33.0 billion**, net debt was **HKD 21.4 billion**, with a net debt to total capital ratio of approximately **5%**[42](index=42&type=chunk) - The Group adopts a prudent approach to managing foreign exchange risk, maintaining an appropriate mix of floating and fixed-rate borrowings to mitigate interest rate risk, and utilizing hedging instruments[43](index=43&type=chunk) - As of the interim balance sheet date, approximately **32% of borrowings were HKD/USD**, and **68% were foreign currencies**; after hedging, approximately **54% were floating-rate** and **46% were fixed-rate**[43](index=43&type=chunk) - Properties valued at **HKD 7.43 billion** were pledged for bank borrowings for property development and investment, and properties valued at **HKD 27.475 billion** were pledged for other borrowings for the pub business[45](index=45&type=chunk) - Contingent liabilities include **HKD 427 million** for the landlord's share of income from hotel projects and **HKD 1.395 billion** for mortgage loans to property buyers for Mainland China development projects[46](index=46&type=chunk) - The Group employs approximately **55,000 staff**, with employee costs of approximately **HKD 6.878 billion** during the period[47](index=47&type=chunk) [Directors' Personal Information](index=22&type=section&id=Directors%27%20Personal%20Information) This section provides detailed profiles of the company's executive and independent non-executive directors, highlighting their professional backgrounds, qualifications, and roles within the Cheung Kong Group and other listed companies [Executive Directors' Profiles](index=22&type=section&id=Executive%20Directors%27%20Profiles) This section details the personal backgrounds, professional qualifications, roles within the Cheung Kong Group and other listed companies, and social and academic contributions of the company's executive directors - Mr. Victor T.K. Li serves as Chairman and Managing Director, and is also Chairman or Executive Director of Cheung Kong (Holdings) Limited, CK Infrastructure Holdings Limited, and CK Life Sciences Int'l (Holdings) Inc[48](index=48&type=chunk) - Mr. Kam Hing Lam is Deputy Managing Director, holding various senior positions within the Cheung Kong Group, and holds a Bachelor of Engineering and an MBA degree[49](index=49&type=chunk) - Mr. Ip Tak Chuen is Vice Chairman, also serving as Deputy Managing Director of CK Hutchison Holdings Limited and Executive Director and Vice Chairman of CK Infrastructure Holdings Limited[50](index=50&type=chunk) - Dr. Edmond K.M. Chiu is an Executive Director with over **40 years of international property business experience**, holding key positions in several real estate investment trusts[51](index=51&type=chunk) [Independent Non-Executive Directors' Profiles](index=25&type=section&id=Independent%20Non-Executive%20Directors%27%20Profiles) This section introduces the professional backgrounds, roles in audit, remuneration, nomination, and sustainability committees, and experience in other listed companies and public service of the company's independent non-executive directors, ensuring board independence and professionalism - Mr. Albert T.Y. Cheung is an Independent Non-Executive Director and Chairman of the Audit Committee, also serving as an Independent Non-Executive Director for several listed companies[53](index=53&type=chunk) - Hon. Helen P.W. Hong is an Independent Non-Executive Director and Chairman of the Remuneration Committee, holding honorary positions at institutions such as The Hong Kong Polytechnic University[54](index=54&type=chunk) - Mr. Andrew J.L. Roberts is an Independent Non-Executive Director and member of the Audit Committee, formerly Deputy Finance Director of Hutchison Whampoa Group, with extensive experience in accounting[55](index=55&type=chunk) - Mr. Barnaby L.B. St. P. Roberts is an Independent Non-Executive Director and Chairman of the Nomination Committee, having held various key positions in the UK Foreign Office and extensive experience in the private sector[56](index=56&type=chunk) - Ms. Margaret L.M. Li is an Independent Non-Executive Director and member of the Audit Committee, formerly Deputy Chairman and Chief Executive of Hang Seng Bank[60](index=60&type=chunk) [Disclosure of Interests](index=30&type=section&id=Disclosure%20of%20Interests) This section details the interests and short positions of directors and major shareholders in the company's shares, underlying shares, and debentures, highlighting significant holdings and beneficial ownership structures [Directors' Interests and Short Positions in Shares, Underlying Shares, and Debentures](index=30&type=section&id=Directors%27%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%2C%20and%20Debentures) This section discloses the long positions of the company's directors and chief executive in the shares of the company and its associated corporations, with Mr. Victor T.K. Li holding approximately 48.87% of the company's equity, primarily through controlled corporations and as a trust beneficiary Directors' Long Positions in the Company's Shares (as of June 30, 2025) | Director Name | Capacity | Number of Ordinary Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Victor T.K. Li | Beneficial Owner, Interests of Child or Spouse, Interests in Controlled Corporations, and Trust Beneficiary | 1,710,382,393 | 48.87% | | Kam Hing Lam | Beneficial Owner and Interests of Child or Spouse | 108,400 | 0.003% | | Ip Tak Chuen | Beneficial Owner | 900,000 | 0.02% | | Hon. Helen P.W. Hong | Beneficial Owner | 43,256 | 0.0012% | | Andrew J.L. Roberts | Jointly Held Interests | 10,396 | 0.0002% | | Frank J. Sixt | Spouse's Interests and Jointly Held Interests | 10,892 | 0.0003% | - Mr. Victor T.K. Li's interests primarily include shares held by the Li Ka Shing Foundation and through trust structures such as Li Ka-Shing Unity Trust and Li Ka-Shing Castle Trust[62](index=62&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk) [Shareholders' Interests and Short Positions](index=33&type=section&id=Shareholders%27%20Interests%20and%20Short%20Positions) This section discloses the long positions of major shareholders in the company's shares, with Li Ka-Shing Unity Trustee Company Limited holding approximately 33.48% as trustee, and Mr. Li Ka-shing holding approximately 48.78% through controlled corporations and as founder of discretionary trusts Major Shareholders' Long Positions in the Company's Shares (as of June 30, 2025) | Shareholder Name | Capacity | Number of Ordinary Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Li Ka-Shing Unity Trustee Company Limited as Trustee of The Li Ka-Shing Unity Trust | Trustee | 1,171,881,779 | 33.48% | | Li Ka-Shing Unity Trustee Corporation Limited as Trustee of The Li Ka-Shing Unity Discretionary Trust | Trustee and Trust Beneficiary | 1,171,881,779 | 33.48% | | Li Ka-Shing Unity Trustcorp Limited as Trustee of another Discretionary Trust | Trustee and Trust Beneficiary | 1,171,881,779 | 33.48% | | Li Ka-shing | (i) Interests in Controlled Corporations (ii) Founder of Discretionary Trusts | 1,707,484,843 | 48.78% | | Li Ka Shing Foundation Limited | Beneficial Owner | 378,788,098 | 10.82% | - Mr. Li Ka-shing's interests include shares held by the Li Ka Shing Foundation and shares held as the founder of multiple discretionary trusts[67](index=67&type=chunk)[69](index=69&type=chunk) [Corporate Governance](index=35&type=section&id=Corporate%20Governance) This section outlines the company's commitment to maintaining high corporate governance standards, including board structure, risk management, internal controls, committee responsibilities, and investor relations [Corporate Governance Practices and Board Operations](index=35&type=section&id=Corporate%20Governance%20Practices%20and%20Board%20Operations) The company is committed to high corporate governance standards, complying with Appendix C1 of the Listing Rules' Corporate Governance Code, and ensures oversight through a diverse board with independent non-executive directors, despite the combined roles of Chairman and Managing Director - The company complies with Appendix C1 of the HKEX Listing Rules' Corporate Governance Code, adhering to all code provisions except for the combined roles of Chairman and Managing Director[70](index=70&type=chunk)[71](index=71&type=chunk) - The Board comprises **16 directors**, including **7 Executive Directors and 9 Independent Non-Executive Directors**, with more than half being Independent Non-Executive Directors[72](index=72&type=chunk) - The Chairman meets with Independent Non-Executive Directors twice a year, providing an exclusive platform to discuss company or business matters[73](index=73&type=chunk) - The company has adopted and regularly reviews comprehensive corporate governance policies such as the "Anti-Fraud and Anti-Bribery Policy," "Anti-Money Laundering Policy," and "Employee Code of Conduct"[71](index=71&type=chunk) [Risk Management and Internal Control](index=37&type=section&id=Risk%20Management%20and%20Internal%20Control) The company has established an internal audit mechanism to continuously and independently assess the effectiveness of its risk management and internal control systems, which were reviewed by the Audit Committee for the first half of the year - The company has established an internal audit mechanism to conduct continuous independent assessments of the Group's risk management and internal control systems[76](index=76&type=chunk) - Audit work primarily involves reviewing the effectiveness of financial, operational, and compliance controls, and identifying and assessing key risk matters[76](index=76&type=chunk) [Responsibilities of Board Committees](index=38&type=section&id=Responsibilities%20of%20Board%20Committees) The Audit, Remuneration, Nomination, and Sustainability Committees each fulfill specific duties covering financial reporting, remuneration policies, board composition, and sustainability strategies to ensure the company operates in line with best practices - The Audit Committee, composed of **7 Independent Non-Executive Directors**, is responsible for overseeing financial reporting, risk management, and internal control systems[77](index=77&type=chunk) - The Remuneration Committee advises the Board on remuneration policies and structures for directors and management[79](index=79&type=chunk) - The Nomination Committee reviews the Board's structure, size, and composition at least annually, and assesses the independence of Independent Non-Executive Directors[80](index=80&type=chunk) - The Sustainability Committee oversees the management of the Group's sustainability initiatives and provides advice on related policies and practices[81](index=81&type=chunk) [Investor Relations and Shareholder Engagement](index=40&type=section&id=Investor%20Relations%20and%20Shareholder%20Engagement) The company maintains effective communication with shareholders and investors through various channels, including its website, general meetings, press conferences, and investor analyst briefings, ensuring information transparency and facilitating feedback - The company's shareholder communication policy is published on its website and regularly reviewed for implementation and effectiveness[82](index=82&type=chunk) - Communication channels include the company website, general meetings, press conferences, and investor analyst briefings[82](index=82&type=chunk) [Other Information](index=41&type=section&id=Other%20Information) This section covers additional disclosures, including details on the purchase, sale, or redemption of listed securities and a comprehensive overview of various risk factors affecting the company's business and operations [Purchase, Sale or Redemption of Listed Securities](index=41&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Listed%20Securities) For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities, and no treasury shares were held - For the six months ended June 30, 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities[84](index=84&type=chunk) - As of June 30, 2025, neither the company nor its subsidiaries held any treasury shares[84](index=84&type=chunk) [Risk Factors](index=41&type=section&id=Risk%20Factors) This section elaborates on various risks and uncertainties impacting the company's business, financial condition, operating results, and development prospects, covering macroeconomic, industry-specific, regulatory, operational, and strategic aspects [Macroeconomic and Market Risks](index=41&type=section&id=Macroeconomic%20and%20Market%20Risks) The company faces macroeconomic risks such as global economic slowdown, trade tensions, policy uncertainty, currency exchange rate fluctuations, interest rate changes, and commodity and energy cost volatility, which could adversely affect its multinational operations - Slowing global economic growth, escalating trade tensions, policy uncertainties, supply chain disruptions, and persistent geopolitical tensions contribute to volatility in global economies and financial markets[86](index=86&type=chunk) - Changes in industry trends, market sentiment, asset values, interest rate cycles, and currency environments may pose significant risks to the company's business[87](index=87&type=chunk) - As a multinational enterprise operating in Hong Kong, Mainland China, Singapore, Europe, Australia, Canada, and the UK, the company faces potential currency fluctuation risks[88](index=88&type=chunk) [Regulatory and Compliance Risks](index=43&type=section&id=Regulatory%20and%20Compliance%20Risks) The company's operations are affected by regulations across multiple jurisdictions, including political, social, legal, tax, regulatory, and environmental requirements, with economic sanctions, data protection laws, and cybersecurity threats potentially leading to additional expenses, business disruption, or reputational damage - The company invests in multiple countries and cities globally, increasingly exposed to the impact of evolving local, national, or international political, social, legal, tax, regulatory, and environmental regulations[89](index=89&type=chunk) - Economic sanctions may affect business partners, suppliers, and customers, potentially leading to business termination, supply disruptions, or asset losses[90](index=90&type=chunk) - Failure to comply with personal data protection laws may result in regulatory actions or civil claims, leading to financial losses and reputational damage[91](index=91&type=chunk) - Cyber fraud, cyber attacks, and cybersecurity breaches could significantly impact the company's operations, business performance, and reputation[92](index=92&type=chunk) - The promulgation and revision of new accounting standards may have a significant impact on the company's financial position or operating results[93](index=93&type=chunk) [Environmental and Social Risks](index=46&type=section&id=Environmental%20and%20Social%20Risks) The company faces risks from social events, terrorist threats, geopolitical tensions, extreme weather due to climate change, policy shifts towards a low-carbon economy, natural disasters, and public health emergencies, all of which could adversely affect its global operations - Social events, terrorist activities, and geopolitical tensions may lead to economic losses, supply chain disruptions, and commodity market volatility[94](index=94&type=chunk) - Climate change may result in extreme weather, business disruptions, supply chain interruptions, and financial damages[95](index=95&type=chunk) - Transitioning to a low-carbon economy may lead to unpredictable changes in government policies, laws, regulatory requirements, financial markets, and consumer behavior[96](index=96&type=chunk) - Natural disasters such as earthquakes, floods, storms, and droughts may have a significant adverse impact on the company's business[97](index=97&type=chunk) - Public health emergencies (e.g., pandemics) may adversely affect the company's business and operating results[98](index=98&type=chunk) - The long-term impact of Brexit remains uncertain, potentially adversely affecting the local economy and the value of the British Pound, thereby impacting the company's UK operations[99](index=99&type=chunk) [Business Operations Risks](index=48&type=section&id=Business%20Operations%20Risks) Each business segment faces specific operational risks, including construction costs, financing, sales, and leasing risks for property development; government funding, regulation, and tenant performance risks for social infrastructure; cyclicality and demand fluctuations for the hotel industry; market environment, supply chain, cost pressures, and compliance risks for the pub industry; and price controls, regulation, and supply disruption risks for the infrastructure market - Property development involves risks such as rising construction costs, financing difficulties, failure to complete or sell/lease properties on time, buyer/tenant defaults, intense competition, and changes in government policies[100](index=100&type=chunk) - Social infrastructure investments are affected by government funding policies, tenant regulatory compliance and operational financial performance, as well as real estate conditions and design changes[104](index=104&type=chunk)[105](index=105&type=chunk)[106](index=106&type=chunk)[107](index=107&type=chunk) - Hotel operations are cyclical, influenced by supply and demand, economic growth, interest rates, political environment, taxes, and seasonal factors[108](index=108&type=chunk) - The UK pub industry faces risks from changing market environment and consumer demand, supply chain and distribution disruptions, rising cost pressures (energy, food, wages), and compliance with health, safety, employment, and data protection regulations[109](index=109&type=chunk)[110](index=110&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk)[113](index=113&type=chunk) - Infrastructure market investments are affected by risks such as price controls, strict regulation, interest and inflation rates, high energy costs, supply disruptions, and intense market competition[114](index=114&type=chunk)[115](index=115&type=chunk) [Strategic and Investment Risks](index=55&type=section&id=Strategic%20and%20Investment%20Risks) The company faces risks in exploring new businesses and investment areas, undertaking acquisitions and disposals, and collaborating with strategic partners, including increased market competition, integration difficulties, regulatory approval uncertainties, cultural differences, and related party transactions, all of which could impact the achievement of its strategic objectives - Exploring new businesses and investment areas faces risks such as intense market competition, insufficient operational experience, and changes in government policies and regulations[117](index=117&type=chunk) - Acquisitions and disposals involve risks of inadequate due diligence, regulatory approval uncertainties, integration difficulties, and failure to achieve expected benefits[118](index=118&type=chunk)[119](index=119&type=chunk) - Collaborating with strategic partners may face risks of misaligned interests, changes in equity control, financial difficulties, or unwillingness to fulfill responsibilities[120](index=120&type=chunk) - Related party transactions with CK Hutchison Holdings Limited must comply with Listing Rules, potentially leading to unforeseen circumstances and increased risks[121](index=121&type=chunk) - Past performance does not guarantee future results, and forward-looking statements involve risks and uncertainties[122](index=122&type=chunk) [Interim Financial Statements](index=58&type=section&id=Interim%20Financial%20Statements) This section presents the company's consolidated financial performance and position for the interim period, including income, comprehensive income, financial position, equity changes, and cash flows, along with detailed notes [Consolidated Income Statement](index=58&type=section&id=Consolidated%20Income%20Statement) For the six months ended June 30, 2025, the company's total revenue (including share of joint ventures) increased to HKD 39.126 billion, but profit attributable to shareholders decreased to HKD 6.302 billion due to a fair value decrease in investment properties and increased taxation Consolidated Income Statement Summary (for the six months ended June 30) | Metric | 2025 (HKD Million) | 2024 (HKD Million) | | :--- | :--- | :--- | | Total Revenue (Group + JVs) | 39,126 | 34,727 | | Operating Costs | (20,932) | (17,155) | | Gain (Loss) on Financial Instruments | 1,115 | (207) | | Fair Value Increase (Decrease) of Investment Properties | (542) | 1,420 | | Share of Profits of Joint Ventures | 2,061 | 1,445 | | Profit Before Tax | 8,575 | 9,215 | | Taxation | (2,017) | (608) | | Profit Attributable to Shareholders | 6,302 | 8,603 | | Earnings Per Share (HKD) | 1.80 | 2.44 | - Group revenue increased from **HKD 22.008 billion in 2024 to HKD 25.386 billion in 2025**[123](index=123&type=chunk) - Taxation significantly increased from **HKD 608 million in 2024 to HKD 2.017 billion in 2025**[123](index=123&type=chunk) [Consolidated Statement of Comprehensive Income](index=59&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's profit for the period was HKD 6.558 billion, with total comprehensive income significantly increasing to HKD 11.623 billion, and total comprehensive income attributable to shareholders at HKD 11.293 billion, primarily due to exchange gains on translating financial statements of overseas operations Consolidated Statement of Comprehensive Income Summary (for the six months ended June 30) | Metric | 2025 (HKD Million) | 2024 (HKD Million) | | :--- | :--- | :--- | | Profit for the Period | 6,558 | 8,607 | | Exchange Gain (Loss) on Translating Financial Statements of Overseas Operations | 15,501 | (2,223) | | Gain (Loss) on Derivative Financial Instruments | (9,379) | 2,190 | | Other Comprehensive Income After Tax | 5,065 | (231) | | Total Comprehensive Income | 11,623 | 8,376 | | Total Comprehensive Income Attributable to Shareholders | 11,293 | 8,372 | - A **HKD 15.501 billion exchange gain** on translating financial statements of overseas operations was recorded in the first half of 2025, significantly boosting comprehensive income[124](index=124&type=chunk) [Consolidated Statement of Financial Position](index=60&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total net assets increased to HKD 406.834 billion, with non-current assets including fixed assets, investment properties, and investments in joint ventures all showing growth, while bank balances and time deposits within current assets decreased Consolidated Statement of Financial Position Summary (as of June 30) | Metric | 30/6/2025 (HKD Million) | 31/12/2024 (HKD Million) | | :--- | :--- | :--- | | Total Non-Current Assets | 340,047 | 325,864 | | Total Current Assets | 175,549 | 175,917 | | Total Current Liabilities | 42,770 | 41,332 | | Total Non-Current Liabilities | 65,992 | 60,249 | | Net Assets | 406,834 | 400,200 | | Shareholders' Equity | 394,243 | 387,675 | - Investment properties increased from **HKD 150.708 billion at the end of 2024 to HKD 152.857 billion**[125](index=125&type=chunk) - Bank balances and time deposits decreased from **HKD 36.069 billion at the end of 2024 to HKD 33.005 billion**[125](index=125&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=61&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, shareholders' equity increased from HKD 387.675 billion at the beginning of the year to HKD 394.243 billion, primarily driven by an increase in total comprehensive income, despite dividend payments Condensed Consolidated Statement of Changes in Equity Summary (for the six months ended June 30) | Metric | Balance as at 1 Jan 2025 (HKD Million) | Total Comprehensive Income (HKD Million) | Dividends Paid to Shareholders (HKD Million) | Balance as at 30 Jun 2025 (HKD Million) | | :--- | :--- | :--- | :--- | :--- | | Shareholders' Equity | 387,675 | 11,293 | (4,725) | 394,243 | | Perpetual Capital Securities | 7,929 | 143 | (143) | 7,929 | | Non-Controlling Interests | 4,596 | 187 | (108) | 4,662 | | **Total Equity** | **400,200** | **11,623** | **(4,976)** | **406,834** | - Exchange reserve within reserves increased from **HKD (5.831 billion) as of January 1, 2025, to HKD (2.165 billion)**, reflecting exchange gains[127](index=127&type=chunk) [Condensed Consolidated Cash Flow Statement](index=62&type=section&id=Condensed%20Consolidated%20Cash%20Flow%20Statement) For the six months ended June 30, 2025, net cash inflow from operating activities significantly increased to HKD 4.297 billion, but substantial net cash outflow from financing activities resulted in a net decrease in cash and cash equivalents of HKD 3.695 billion Condensed Consolidated Cash Flow Statement Summary (for the six months ended June 30) | Metric | 2025 (HKD Million) | 2024 (HKD Million) | | :--- | :--- | :--- | | Net Cash Inflow from Operating Activities | 4,297 | 1,471 | | Net Cash Inflow (Outflow) from Investing Activities | 71 | (3,269) | | Net Cash Outflow from Financing Activities | (8,063) | (7,564) | | Net Decrease in Cash and Cash Equivalents | (3,695) | (9,362) | | Cash and Cash Equivalents at June 30 | 31,093 | 31,419 | - Net cash inflow from operating activities significantly increased year-on-year, from **HKD 1.471 billion to HKD 4.297 billion**[128](index=128&type=chunk) - Net cash outflow from financing activities primarily included **net repayment of bank borrowings and dividend payments**[128](index=128&type=chunk) [Notes to the Interim Financial Statements](index=63&type=section&id=Notes%20to%20the%20Interim%20Financial%20Statements) This section provides important supplementary information for the interim financial statements, including the basis of preparation, detailed classification of revenue and profit contributions, profit before tax, taxation, interim dividend, earnings per share, aging analysis, fair value of financial assets and liabilities, and capital commitments - The interim financial statements are prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and presented in Hong Kong Dollars[130](index=130&type=chunk) Total Revenue by Principal Business (for the six months ended June 30) | Business | 2025 (HKD Million) | 2024 (HKD Million) | | :--- | :--- | :--- | | Property Sales | 7,366 | 4,635 | | Property Leasing | 3,002 | 3,118 | | Hotel and Serviced Suite Business | 2,192 | 2,130 | | Property and Project Management | 444 | 445 | | Pub Business | 12,524 | 11,823 | | Infrastructure and Utility Assets Business | 13,598 | 12,576 | | **Total** | **39,126** | **34,727** | Profit Contribution by Principal Business (for the six months ended June 30) | Business | 2025 (HKD Million) | 2024 (HKD Million) | | :--- | :--- | :--- | | Property Sales | 1,768 | 1,821 | | Property Leasing | 2,315 | 2,444 | | Hotel and Serviced Suite Business | 794 | 823 | | Property and Project Management | 182 | 180 | | Pub Business | 629 | 597 | | Infrastructure and Utility Assets Business | 4,576 | 4,098 | | **Total** | **10,264** | **9,963** | - Profit before tax is stated after deducting interest and other finance costs of **HKD 883 million** (2024: HKD 666 million), and cost of properties sold of **HKD 3.779 billion** (2024: HKD 2.362 billion)[133](index=133&type=chunk) - Total taxation for the period was **HKD 2.017 billion**, comprising **HKD 431 million for Hong Kong taxation** and **HKD 1.404 billion for overseas taxation**[134](index=134&type=chunk) - The Board declared an interim dividend of **HKD 0.39 per share**, totaling **HKD 1.365 billion**, consistent with the prior year[135](index=135&type=chunk) - Earnings per share are calculated based on **3,499,778,333 issued shares** during the period[136](index=136&type=chunk) - Trade receivables with an aging within one month amounted to **HKD 1.183 billion**, and trade payables with an aging within one month amounted to **HKD 4.058 billion**[137](index=137&type=chunk) - Fair value measurements for investments and derivative financial instruments use Level 1 (quoted prices in active markets), Level 2 (observable valuation inputs), and Level 3 (unobservable market data) valuation inputs[138](index=138&type=chunk)[139](index=139&type=chunk) - As of the interim balance sheet date, capital commitments for development of investment properties and other projects amounted to **HKD 1.475 billion**[141](index=141&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不負責，對其準確性或完整性亦不發表任何聲 明，並明確表示，概不會就因本公佈的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責任。 本公佈僅供參考，並不構成收購、購買或認購證券的邀請或要約，亦非提呈任何該等要約或邀請。尤其本公佈並不構成 亦非提呈出售或邀約購買香港、美國或其他地方的證券之要約。 根據一九三三年美國證券法，在概無註冊或獲豁免註冊的情況下，不得於美國提呈或出售證券。任何在美國公開發售證 券僅可透過招股章程的形式進行，招股章程可向發行人或出售證券的持有人索取，且當中須載列發行人及其管理層的詳 細資料以及財務資料。本公佈所提述的證券概無計劃於美國公開發售。 Shui On Land Limited 瑞安房地產有限公司* （於開曼群島註冊成立之有限責任公司） （股份代號：272） 2025 年中期業績公佈 摘要 網站： www.shuionland.com ➢ 在市場持續面臨挑戰下保持盈利：2025 年上半年，全球貿易緊張局勢加劇、地緣政治極不穩定，加上消費 信心不振，使中國房地產行業持續面臨挑戰。儘管市場環境低迷，本集團仍 ...

[Interim Results Announcement Overview](index=1&type=section&id=%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%91%8A%E6%A6%82%E8%A6%BD) [Financial Summary](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) The company's unaudited interim results show significant revenue growth, a shift from gross loss to profit, and a markedly narrowed loss for the period Financial Highlights | Metric | 2025 (RMB in thousands) | 2024 (RMB in thousands) | Change | | :--- | :--- | :--- | :--- | | Revenue | 71,123 | 6,978 | 919.2% Increase | | Cost of Sales | (10,342) | (12,599) | 18.3% Decrease | | Gross Profit (Loss) | 60,781 | (5,621) | From Loss to Profit | | R&D Expenses | (98,848) | (99,865) | 1.0% Decrease | | Loss for the Period | (121,518) | (155,807) | 22.0% Decrease | | Loss per Share - Basic and Diluted (RMB Yuan) | (0.34) | (0.43) | 20.9% Decrease | [Management Discussion and Analysis](index=1&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) [Business Review and Outlook](index=1&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7%E5%8F%8A%E5%B1%95%E6%9C%9B) The company focuses on R&D, manufacturing, and commercialization of innovative vaccines, achieving significant progress with its core product and advancing multiple pipeline candidates - The company, founded in 2015 and headquartered in China, is dedicated to the R&D, manufacturing, and commercialization of innovative vaccines and traditional vaccines using new technologies[5](index=5&type=chunk) - As of the announcement date, the company has two core products: the Quadrivalent Influenza Virus Subunit Vaccine and the investigational Lyophilized Human Rabies Vaccine[5](index=5&type=chunk) - The company also has 11 other vaccine candidates covering multiple disease areas, all of which are or are expected to be classified as Category II vaccines in China[5](index=5&type=chunk) [Overview](index=1&type=section&id=%E6%A6%82%E8%A6%BD) The company, a Chinese vaccine firm founded in 2015, focuses on R&D, manufacturing, and commercialization of innovative vaccines, with two core products and 11 other candidates in its pipeline Product Pipeline | Product | Indication | Development Stage | Expected Near-Term Milestone | | :--- | :--- | :--- | :--- | | Quadrivalent Influenza Virus Subunit Vaccine (3 years and older) | Influenza | NDA Approved | Complete post-approval safety study in Q4 2025 | | Quadrivalent Influenza Virus Subunit Vaccine (6-35 months) | Influenza | Phase III completed, NDA accepted | Obtain NDA approval in Q3 2025 | | Quadrivalent Influenza Virus Subunit Vaccine (Adjuvanted) (65 years and older) | Influenza | Pre-clinical | Initiate Phase I clinical trial in Q4 2025 | | Trivalent Influenza Virus Subunit Vaccine (3 years and older) | Influenza | NDA accepted | Obtain NDA approval in Q3 or Q4 2025 | | Trivalent Influenza Virus Subunit Vaccine (6-35 months) | Influenza | NDA accepted | Obtain NDA approval in Q3 or Q4 2025 | | Trivalent Influenza Virus Subunit Vaccine (Adjuvanted) (65 years and older) | Influenza | Pre-clinical | Initiate Phase I clinical trial in Q4 2025 | | Lyophilized Human Rabies Vaccine (Human Diploid Cell) | Rabies | Phase I completed | Initiate Phase III clinical trial in Q3 2025 | | PPSV23 | Invasive pneumococcal disease | Pre-clinical | Initiate Phase III clinical trial in Q4 2025 or Q1 2026 | | Recombinant Zoster Vaccine (CHO Cell) | Shingles | Phase I enrollment and initial safety report completed, Phase II enrollment completed | Complete Phase I clinical trial in H1 2026 | | Recombinant RSV Vaccine (CHO Cell) | RSV LRTI | IND Approved (NMPA/FDA) | Initiate Phase I clinical trial in Q1 2026 | | RSV-mRNA Vaccine | RSV LRTI | Pre-clinical | Submit pre-IND application in Q3 or Q4 2025 | | mRNA Mpox Vaccine | Mpox | Pre-clinical | Submit pre-IND application in Q4 2025 | | PCV24 | Invasive pneumococcal disease | Pre-clinical | Submit pre-IND application in Q1 2026 | | Varicella Vaccine, Live | Varicella | Pre-clinical | Submit pre-IND application in Q1 2026 | | Adsorbed Tetanus Toxoid Vaccine | Tetanus | Pre-clinical | Submit pre-IND application in Q4 2025 | [Core Products](index=3&type=section&id=%E6%A0%B8%E5%BF%83%E7%94%A2%E5%93%81) The company's core products include the approved Quadrivalent Influenza Virus Subunit Vaccine and the clinical-stage Lyophilized Human Rabies Vaccine (Human Diploid Cell) - The company cannot guarantee the successful development or marketing of its core products, and shareholders and potential investors are advised to exercise caution[11](index=11&type=chunk) [Quadrivalent Influenza Virus Subunit Vaccine](index=3&type=section&id=%E5%9B%9B%E5%83%B9%E6%B5%81%E6%84%9F%E7%97%85%E6%AF%92%E4%BA%9E%E5%96%AE%E4%BD%8D%E7%96%AB%E8%8B%97) The Quadrivalent Influenza Virus Subunit Vaccine (Huirconxin®) was approved by the NMPA in May 2023, becoming China's first and only approved vaccine of its kind - The Quadrivalent Influenza Virus Subunit Vaccine received **NDA approval from the NMPA in May 2023** for use in individuals aged three and above, making it the first and only approved vaccine of its kind in China[8](index=8&type=chunk) - The company began commercialization in September 2023, and as of June 30, 2025, all units were self-produced[8](index=8&type=chunk) - The vaccine for the 6-35 month age group has completed Phase III clinical trials, with its **NDA accepted by the NMPA in June 2024** and approval expected in Q3 2025[9](index=9&type=chunk) [Lyophilized Human Rabies Vaccine (Human Diploid Cell)](index=3&type=section&id=%E5%87%8D%E4%B9%BE%E4%BA%BA%E7%94%A8%E7%8B%82%E7%8A%AC%E7%97%85%E7%96%AB%E8%8B%97%EF%BC%88%E4%BA%BA%E4%BA%8C%E5%80%8D%E9%AB%94%E7%B4%B0%E8%83%9E%EF%BC%89) The investigational Lyophilized Human Rabies Vaccine (Human Diploid Cell) has completed Phase I trials with good safety and is preparing for Phase III trials - The investigational rabies vaccine, developed based on WHO-recommended human diploid cells, has completed Phase I clinical trials and demonstrated a **favorable safety profile**[10](index=10&type=chunk) - The company has obtained IND approvals for three immunization schedules: Essen, Zagreb, and the simplified four-injection regimen[10](index=10&type=chunk) - As of the announcement date, the company has begun preparations for the **Phase III clinical trial**, which is expected to be initiated in Q3 2025[10](index=10&type=chunk) [Our Other Pipeline Products](index=4&type=section&id=%E6%88%91%E5%80%91%E7%9A%84%E5%85%B6%E4%BB%96%E5%9C%A8%E7%A0%94%E7%94%A2%E5%93%81) The company's other pipeline products cover various diseases including influenza, pneumococcal disease, shingles, RSV, mpox, varicella, and tetanus [Trivalent Influenza Virus Subunit Vaccine](index=4&type=section&id=%E4%B8%89%E5%83%B9%E6%B5%81%E6%84%9F%E7%97%85%E6%AF%92%E4%BA%9E%E5%96%AE%E4%BD%8D%E7%96%AB%E8%8B%97) The Trivalent Influenza Virus Subunit Vaccine is designed to provide protection consistent with WHO-recommended strains for the 2024-2025 Northern Hemisphere influenza season - The Trivalent Influenza Virus Subunit Vaccine aims to protect against two influenza A viruses and one influenza B virus, aligning with WHO recommendations for the 2024-2025 Northern Hemisphere season[12](index=12&type=chunk) - The vaccine leverages the mature formulation of the approved quadrivalent vaccine, simply omitting one influenza B subtype during preparation[12](index=12&type=chunk) - The **NDA for use in individuals aged 3 years and above and those aged 6-35 months was accepted** by the NMPA in September 2024[12](index=12&type=chunk) [23-valent Pneumococcal Polysaccharide Vaccine (PPSV23)](index=4&type=section&id=23%E5%83%B9%E8%82%BA%E7%82%8E%E7%90%83%E8%8F%8C%E5%A4%9A%E7%B3%96%E7%96%AB%E8%8B%97(PPSV23)) The company is developing a PPSV23 candidate for individuals aged two and above, which has shown strong immunogenicity and improved safety through process enhancements - The investigational PPSV23 induced a **strong immunogenic response** in subjects aged two and above in a Phase I clinical trial[13](index=13&type=chunk) - The company has significantly improved the manufacturing process by replacing ethanol precipitation with ion-exchange column chromatography to enhance product safety[13](index=13&type=chunk) [Recombinant Zoster Vaccine (CHO Cell)](index=4&type=section&id=%E9%87%8D%E7%B5%84%E5%B8%B6%E7%8B%80%E7%9A%B0%E7%96%B9%E7%96%AB%E8%8B%97%EF%BC%88CHO%E7%B4%B0%E8%83%9E%EF%BC%89) The company is developing a recombinant zoster vaccine with a proprietary dual-adjuvant for individuals aged 40 and above, which has entered Phase II trials - The investigational recombinant zoster vaccine uses a **proprietary dual-adjuvant** and is intended for individuals aged 40 and above[14](index=14&type=chunk) - Pre-clinical animal studies showed a stronger cell-mediated immune response, potentially translating to enhanced protective efficacy[14](index=14&type=chunk) - A **Phase I trial was initiated in February 2025**, followed by the initiation of a Phase II trial in July 2025[14](index=14&type=chunk) [24-valent Pneumococcal Conjugate Vaccine (PCV24)](index=5&type=section&id=24%E5%83%B9%E8%82%BA%E7%82%8E%E7%90%83%E8%8F%8C%E7%B5%90%E5%90%88%E7%96%AB%E8%8B%97(PCV24)) The company is developing a PCV24 vaccine to provide broader protection against 24 serotypes of pneumococcus, utilizing a single carrier protein for cost-effective production - The investigational PCV24 vaccine is designed to protect a broader population, including infants under two years of age[15](index=15&type=chunk) - It targets **24 serotypes of pneumococcus**, significantly reducing the risk of invasive disease[15](index=15&type=chunk) - The vaccine uses a **single carrier protein, CRM197**, to ensure a consistent immune response while simplifying production and maintaining cost-effectiveness[15](index=15&type=chunk) [Recombinant RSV Vaccine (CHO Cell)](index=5&type=section&id=%E9%87%8D%E7%B5%84RSV%E7%96%AB%E8%8B%97%EF%BC%88CHO%E7%B4%B0%E8%83%9E%EF%BC%89) The company is developing a recombinant RSV vaccine using CHO cells for adults, which has received IND approval from both the NMPA and FDA - The investigational recombinant RSV vaccine is developed using CHO cells to express a modified pre-F protein[16](index=16&type=chunk) - It aims to protect adults, including pregnant women, from acute RSV infection and related severe lower respiratory tract illness[16](index=16&type=chunk) - The vaccine received **IND approval from both the NMPA and the FDA** in August 2025[16](index=16&type=chunk) [RSV-mRNA Vaccine](index=5&type=section&id=RSV-mRNA%E7%96%AB%E8%8B%97) The company's investigational RSV-mRNA vaccine for adults aged 60 and above is currently in pre-clinical studies - The investigational RSV-mRNA vaccine is intended for individuals aged 60 and above to prevent acute RSV infection and related severe lower respiratory tract illness[17](index=17&type=chunk) - It utilizes synthetic mRNA designed to encode the RSV pre-F protein, encapsulated in lipid nanoparticles (LNPs)[17](index=17&type=chunk) - As of the announcement date, the vaccine candidate is undergoing **pre-clinical studies**[17](index=17&type=chunk) [mRNA Mpox Vaccine](index=5&type=section&id=mRNA%E7%8C%B4%E7%97%98%E7%96%AB%E8%8B%97) The company is developing an mRNA mpox vaccine for individuals aged 18 and above, which is currently in pre-clinical studies - The investigational mRNA mpox vaccine is a next-generation prophylactic vaccine formulated using a quadrivalent orthopoxvirus antigen and the mRNA-LNP technology platform[18](index=18&type=chunk) - It is intended for the prevention of mpox in individuals aged 18 and above[18](index=18&type=chunk) - As of the announcement date, the vaccine candidate is undergoing **pre-clinical studies**[18](index=18&type=chunk) [Varicella Vaccine, Live](index=5&type=section&id=%E6%B0%B4%E7%97%98%E6%B8%9B%E6%AF%92%E6%B4%BB%E7%96%AB%E8%8B%97) The company is developing a live attenuated varicella vaccine for susceptible individuals aged 12 months or older, having completed the establishment of cell and virus seed banks - The investigational live attenuated varicella vaccine is intended for healthy, varicella-susceptible individuals aged 12 months or older[19](index=19&type=chunk) - It is produced by propagating the Oka strain of VZV in human diploid cells (MRC-5) and is lyophilized with a stabilizer[19](index=19&type=chunk) - The company has completed the establishment of the **cell banks and virus seed banks** for the vaccine candidate[19](index=19&type=chunk) [Adsorbed Tetanus Toxoid Vaccine](index=6&type=section&id=%E5%90%B8%E9%99%84%E7%A0%B4%E5%82%B7%E9%A2%A8%E9%A1%9E%E6%AF%92%E7%B4%A0%E7%96%AB%E8%8B%97) The company is developing a tetanus toxoid vaccine and has completed process scale-up development and pilot-scale production - The investigational adsorbed tetanus toxoid vaccine is designed to induce protective antitoxin antibodies through immunization[20](index=20&type=chunk) - The company has completed the **process scale-up development and three pilot-scale production batches** of the drug substance for the vaccine candidate[20](index=20&type=chunk) [R&D](index=6&type=section&id=%E7%A0%94%E7%99%BC) The company possesses strong R&D capabilities led by an experienced team and supported by three comprehensive vaccine development platforms - The R&D team is led by experienced scientists including Dr Ze Chen (Chief Scientist) and Dr Yelin Xiong (Head of mRNA vaccine research and polysaccharide conjugation technology platforms)[21](index=21&type=chunk) - As of June 30, 2025, **46.1% of the in-house R&D team held a Ph.D. or master's degree**[21](index=21&type=chunk) - The company has established platforms for genetic engineering and protein expression, mRNA vaccine research, and adjuvant development, supplemented by unique proprietary technologies[22](index=22&type=chunk) [Manufacturing](index=7&type=section&id=%E7%94%9F%E7%94%A2%E8%A3%BD%E9%80%A0) All commercial and clinical trial vaccines are produced at the Taizhou headquarters' Production Campus No. 1, with capacity expansion underway - All Quadrivalent Influenza Virus Subunit Vaccine products and investigational vaccines for clinical trials are manufactured at **Production Campus No. 1** in Taizhou[23](index=23&type=chunk) - Production Campus No. 1 currently has three operational production lines: influenza vaccine (4.0 million doses/year), rabies vaccine (5.0 million doses/year), and pneumococcal vaccine (15.0 million doses/year)[23](index=23&type=chunk) - The company is constructing **Production Campus No. 2** (for influenza vaccine expansion) and **Production Campus No. 3** (for recombinant protein vaccines) at its headquarters[23](index=23&type=chunk) [Commercialization](index=7&type=section&id=%E5%95%86%E6%A5%AD%E5%8C%96) The company sells its quadrivalent influenza vaccine directly to CDCs, achieving market access in 30 provinces and adoption by over 1,100 district/county CDCs - The Quadrivalent Influenza Virus Subunit Vaccine is sold directly to CDCs, with **market access in 30 provinces** and selection by over 1,100 district and county-level CDCs[24](index=24&type=chunk) - An in-house sales and marketing team has been established, supplemented by third-party marketing service providers[24](index=24&type=chunk) - The marketing strategy is led by academic promotion with a focus on special populations such as pregnant women and patients with chronic diseases[24](index=24&type=chunk) [Intellectual Property](index=7&type=section&id=%E7%9F%A5%E8%AD%98%E7%94%A2%E6%AC%8A) As of June 30, 2025, the company held 190 patents in China and had no significant ongoing intellectual property legal proceedings - As of June 30, 2025, the company owned **190 patents in China**, including 37 invention patents and 153 utility model patents[25](index=25&type=chunk) - The core product, the Quadrivalent Influenza Virus Subunit Vaccine, is protected by 12 registered patents, while the rabies vaccine has 5 registered patents[25](index=25&type=chunk) - For the six months ended June 30, 2025, the company was not involved in any material IP legal proceedings or received any material claims of IP infringement[25](index=25&type=chunk) [Employees and Remuneration](index=8&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC) As of June 30, 2025, the company had 583 employees in China, with a compensation plan including salary, bonuses, and equity incentives - As of June 30, 2025, the Group had **583 employees**, all located in China[26](index=26&type=chunk) - The Group's employee remuneration package includes salaries, bonuses, and equity-based incentives, and an employee incentive scheme has been adopted[26](index=26&type=chunk) - For the six months ended June 30, 2025, the Group did not experience any material labor disputes or strikes that could have a significant adverse effect on its business[26](index=26&type=chunk) [Future Outlook](index=8&type=section&id=%E6%9C%AA%E4%BE%86%E5%B1%95%E6%9C%9B) The company plans to advance clinical trials, enrich its vaccine pipeline, upgrade technology platforms, and expand into international markets - Efficiently advance post-approval studies and clinical trials for core products[30](index=30&type=chunk) - Accelerate the development of other vaccine candidates that address unmet clinical needs to enrich the vaccine pipeline[30](index=30&type=chunk) - Further strengthen manufacturing and commercialization capabilities, and enter international markets to enhance the commercial value of vaccine candidates[30](index=30&type=chunk) [Financial Review](index=8&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) For the six months ended June 30, 2025, the company's revenue grew significantly, gross profit turned positive, and net loss narrowed considerably [Analysis of Major Items in Operating Performance](index=8&type=section&id=%E7%B6%93%E7%87%9F%E6%A5%AD%E7%B8%BE%E4%B8%BB%E8%A6%81%E9%A0%85%E7%9B%AE%E5%88%86%E6%9E%90) During the period, revenue surged due to increased vaccine sales, gross profit turned positive, and the net loss narrowed despite higher selling and listing expenses [Revenue](index=8&type=section&id=%E6%94%B6%E5%85%A5) Revenue for the six months ended June 30, 2025, surged to RMB71.1 million from RMB7.0 million in the prior-year period, driven by increased vaccine sales | Period | Six months ended June 30, 2025 | Six months ended June 30, 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 71,123 | 6,978 | 919.2% Increase | - The substantial increase in revenue was primarily attributable to the **gradual increase in sales** of the Quadrivalent Influenza Virus Subunit Vaccine[28](index=28&type=chunk) [Cost of Sales](index=8&type=section&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC) Cost of sales for the six months ended June 30, 2025, decreased by 18.3% to RMB10.3 million, mainly due to enhanced inventory management | Period | Six months ended June 30, 2025 | Six months ended June 30, 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Cost of Sales | (10,342) | (12,599) | 18.3% Decrease | - The decrease in cost of sales was mainly consistent with **enhanced inventory management**[29](index=29&type=chunk) [Gross Profit and Gross Profit Margin](index=9&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) For the six months ended June 30, 2025, the company shifted from a gross loss of RMB5.6 million to a gross profit of RMB60.8 million, with the margin improving to 85.5% | Period | Six months ended June 30, 2025 | Six months ended June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Gross Profit (Loss) | 60,781 | (5,621) | From Loss to Profit | | Gross Profit Margin | 85.5% | (80.0%) | Significant Improvement | [Other Income](index=9&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) Other income for the six months ended June 30, 2025, decreased by 65.7% to RMB5.7 million due to a one-off government subsidy received in the prior-year period | Period | Six months ended June 30, 2025 | Six months ended June 30, 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Other Income | 5,651 | 16,623 | 65.7% Decrease | - The decrease was mainly due to a **one-off government subsidy** received in the same period of 2024 related to the NDA approval of the Quadrivalent Influenza Virus Subunit Vaccine[32](index=32&type=chunk) [R&D Expenses](index=9&type=section&id=%E7%A0%94%E7%99%BC%E9%96%8B%E6%94%AF) R&D expenses for the six months ended June 30, 2025, remained relatively stable at RMB98.8 million, a slight decrease from the prior-year period | Metric | Six months ended June 30, 2025 | Six months ended June 30, 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Total | 98,848 | 99,865 | 1.0% Decrease | | Staff Costs | 29,490 | 29,669 | 0.6% Decrease | | Trial and Testing Expenses | 8,517 | 18,894 | 54.9% Decrease | | Depreciation and Amortization | 22,928 | 16,462 | 39.3% Increase | | Material Costs | 19,538 | 14,056 | 39.0% Increase | | Share-based Payments | 5,298 | 9,004 | 41.1% Decrease | - R&D expenses primarily consist of staff costs for R&D personnel, trial and testing expenses, depreciation and amortization, and R&D material costs[33](index=33&type=chunk) [Selling Expenses](index=9&type=section&id=%E9%8A%B7%E5%94%AE%E9%96%8B%E6%94%AF) Selling expenses for the six months ended June 30, 2025, increased by 91.5% to RMB47.3 million due to intensified product promotion efforts | Period | Six months ended June 30, 2025 | Six months ended June 30, 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Selling Expenses | 47,319 | 24,736 | 91.5% Increase | - The increase was mainly due to higher marketing expenses resulting from **intensified product promotion efforts** in 2025[36](index=36&type=chunk) [Administrative Expenses](index=10&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) Administrative expenses for the six months ended June 30, 2025, decreased by 17.6% to RMB26.2 million, primarily due to the vesting and forfeiture of share awards | Period | Six months ended June 30, 2025 | Six months ended June 30, 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Administrative Expenses | 26,232 | 31,819 | 17.6% Decrease | - The decrease was mainly due to the continuous vesting of share awards and the forfeiture of unvested share awards granted to employees who left the company[37](index=37&type=chunk) [Listing Expenses](index=10&type=section&id=%E4%B8%8A%E5%B8%82%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, the company incurred approximately RMB11.0 million in expenses related to its H-share listing on the Stock Exchange | Period | Six months ended June 30, 2025 | Six months ended June 30, 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Listing Expenses | 10,955 | – | New | [Finance Costs](index=10&type=section&id=%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) Finance costs for the six months ended June 30, 2025, increased by 32.1% to RMB10.3 million, mainly due to higher interest expenses from increased borrowings | Period | Six months ended June 30, 2025 | Six months ended June 30, 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Finance Costs | 10,302 | 7,785 | 32.1% Increase | - The increase was primarily due to higher interest expenses on bank borrowings resulting from an **increase in borrowings** during the period[39](index=39&type=chunk) [Loss for the Period](index=10&type=section&id=%E6%9C%9F%E5%85%A7%E8%99%A7%E6%90%8D) The loss for the six months ended June 30, 2025, narrowed by 22.0% to RMB121.5 million, reflecting the net effect of changes in operating performance items | Period | Six months ended June 30, 2025 | Six months ended June 30, 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Loss for the Period | (121,518) | (155,807) | 22.0% Decrease | [Analysis of Major Items in Financial Position](index=10&type=section&id=%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E4%B8%BB%E8%A6%81%E9%A0%85%E7%9B%AE%E5%88%86%E6%9E%90) As of June 30, 2025, inventories increased significantly to meet demand, while trade receivables decreased due to active collection efforts [Inventories](index=10&type=section&id=%E5%AD%98%E8%B2%A8) As of June 30, 2025, inventories increased by 86.3% to RMB107.7 million to meet growing product demand | Date | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Inventories | 107,743 | 57,809 | 86.3% Increase | - The increase in inventories was to **meet the growing demand** for products[41](index=41&type=chunk) [Trade Receivables](index=10&type=section&id=%E8%B2%A1%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, trade receivables decreased by 48.0% to RMB148.2 million due to active collection of outstanding balances | Date | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Trade Receivables | 148,171 | 284,905 | 48.0% Decrease | - The decrease was mainly due to the company's **active collection of outstanding trade receivables**[42](index=42&type=chunk) [Trade and Other Payables](index=10&type=section&id=%E8%B2%A1%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, trade and other payables decreased slightly by 0.4% to RMB456.1 million, mainly due to the settlement of certain trade payables | Date | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Trade and Other Payables | 456,108 | 458,031 | 0.4% Decrease | - The decrease was mainly due to the **settlement of certain trade payables** during the six months ended June 30, 2025[43](index=43&type=chunk) [Liquidity and Capital Resources](index=11&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E6%BA%90) Cash was primarily used for R&D, vaccine production, and campus construction, funded by equity financing, bank borrowings, and operating cash flow - Cash usage was mainly related to the R&D of vaccine candidates, production and launch of the quadrivalent influenza vaccine, and construction of production campuses[45](index=45&type=chunk) - Funding sources were primarily through equity financing, bank borrowings, and cash generated from operations[45](index=45&type=chunk) - Net cash inflow from operating activities was **RMB0.2 million**, a significant improvement from the RMB107.9 million outflow in the same period of 2024[45](index=45&type=chunk) | Date | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | 108,427 | 132,194 | [Net Current Liabilities](index=11&type=section&id=%E6%B5%81%E5%8B%95%E8%B2%A0%E5%82%B5%E6%B7%A8%E9%A1%8D) As of June 30, 2025, net current liabilities increased by 16.3% to RMB480.3 million to support R&D, production, and promotional activities | Date | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | Change | | :--- | :--- | :--- | :--- | | Net Current Liabilities | (480,253) | (413,142) | 16.3% Increase | - The increase was mainly due to a decrease in cash and an increase in borrowings to support ongoing product R&D, as well as the production and promotion of the quadrivalent influenza vaccine[46](index=46&type=chunk) [Indebtedness](index=11&type=section&id=%E5%82%B5%E5%8B%99) As of June 30, 2025, total borrowings increased to support operations, while lease liabilities decreased and amounts due to shareholders were settled [Borrowings](index=11&type=section&id=%E5%80%9F%E6%AC%BE) As of June 30, 2025, total borrowings increased to RMB907.8 million to support operational needs and the construction of production campuses | Date | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | Change | | :--- | :--- | :--- | :--- | | Total Borrowings | 907,797 | 809,536 | 12.1% Increase | - The increase in borrowings was mainly to **support our operational needs** and the construction of production campuses[47](index=47&type=chunk) [Lease Liabilities](index=12&type=section&id=%E7%A7%9F%E8%B3%83%E8%B2%A0%E5%82%B5) As of June 30, 2025, total lease liabilities decreased to RMB8.7 million due to the termination of certain leases during the period | Date | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | Change | | :--- | :--- | :--- | :--- | | Total Lease Liabilities | 8,700 | 49,300 | 82.3% Decrease | - The decrease in lease liabilities was mainly due to the **termination of certain leases** during the six months ended June 30, 2025[48](index=48&type=chunk) [Amounts Due to Shareholders](index=12&type=section&id=%E6%87%89%E4%BB%98%E8%82%A1%E6%9D%B1%E6%AC%BE%E9%A0%85) As of June 30, 2025, the RMB27.7 million borrowings from two controlling shareholders had been settled - As of June 30, 2025, borrowings of **RMB27.7 million** from two controlling shareholders, Mr An Youcai and Mr He Yiming, had been settled[49](index=49&type=chunk) [Third-party Loans](index=12&type=section&id=%E7%AC%AC%E4%B8%89%E6%96%B9%E8%B2%B8%E6%AC%BE) As of June 30, 2025, the company had a new third-party loan of RMB16.1 million, bearing interest at 3% per annum and repayable on demand - As of June 30, 2025, the company's third-party loan of **RMB16.1 million** was recorded under trade and other payables, bearing interest at 3% per annum and repayable on demand[50](index=50&type=chunk) [Pledge of Assets](index=12&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the company's pledged assets amounted to RMB145.3 million, a slight decrease from December 31, 2024 | Date | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | Change | | :--- | :--- | :--- | :--- | | Pledged Assets | 145,300 | 149,300 | 2.7% Decrease | [Gearing Ratio](index=12&type=section&id=%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87) As of June 30, 2025, the gearing ratio increased slightly to 0.98 times, mainly due to operating losses during the period | Date | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Gearing Ratio | 0.98 times | 0.91 times | Slight Increase | - The increase in the gearing ratio was mainly due to **operating losses** for the six months ended June 30, 2025[52](index=52&type=chunk) [Capital Expenditure and Capital Commitments](index=12&type=section&id=%E8%B3%87%E6%9C%AC%E6%94%AF%E5%87%BA%E5%8F%8A%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) Capital expenditure for the six months ended June 30, 2025, was RMB47.0 million, with capital commitments of RMB353.0 million mainly for production facilities | Period | Six months ended June 30, 2025 (RMB in thousands) | Six months ended June 30, 2024 (RMB in thousands) | Change | | :--- | :--- | :--- | :--- | | Capital Expenditure | 47,000 | 141,000 | 66.7% Decrease | | Date | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | Change | | :--- | :--- | :--- | :--- | | Capital commitments contracted but not provided for | 353,000 | 378,100 | 6.7% Decrease | - The company plans to use approximately **HK$20.2 million** of the proceeds from the Global Offering to upgrade production facilities and equipment for its vaccines[53](index=53&type=chunk) [Contingent Liabilities](index=13&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the company did not have any material contingent liabilities - As of June 30, 2025, the Company did not have any **material contingent liabilities**[54](index=54&type=chunk) [Foreign Exchange Risk](index=13&type=section&id=%E8%B2%A8%E5%B9%A3%E9%A2%A8%E9%9A%AA) During the reporting period, the company did not face significant foreign exchange risk, and its operations were not materially affected by currency fluctuations - During the reporting period, the company did not face **significant foreign exchange risk**, and our operations were not materially affected by any exchange rate fluctuations[55](index=55&type=chunk) [Material Investments and Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=13&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E5%8F%8A%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E3%80%81%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%90%88%E7%87%9F%E4%BC%81%E6%A5%AD) For the six months ended June 30, 2025, the company had no material investments or material acquisitions or disposals of subsidiaries, associates, and joint ventures - For the six months ended June 30, 2025, the Company had **no material investments** and/or material acquisitions or disposals of subsidiaries, associates and joint ventures[56](index=56&type=chunk) [Condensed Consolidated Financial Statements](index=14&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=14&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, revenue grew substantially to RMB71,123 thousand, gross profit turned positive, and the net loss narrowed For the six months ended June 30 | Metric | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Revenue | 71,123 | 6,978 | | Cost of sales | (10,342) | (12,599) | | Gross profit (loss) | 60,781 | (5,621) | | Other income | 5,651 | 16,623 | | R&D expenses | (98,848) | (99,865) | | Selling expenses | (47,319) | (24,736) | | Administrative expenses | (26,232) | (31,819) | | Listing expenses | (10,955) | – | | Finance costs | (10,302) | (7,785) | | Loss and total comprehensive expense for the period | (121,518) | (155,807) | | Loss per share – basic and diluted (RMB Yuan) | (0.34) | (0.43) | [Condensed Consolidated Statement of Financial Position](index=15&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, total assets less current liabilities stood at RMB597,686 thousand, with increased inventory and decreased trade receivables As at June 30, 2025 | Metric | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | **Non-current assets** | | | | Property, plant and equipment | 938,266 | 944,690 | | Right-of-use assets | 52,157 | 86,091 | | Intangible assets | 24,706 | 25,660 | | Other receivables and prepayments | 62,810 | 60,861 | | **Total non-current assets** | **1,077,939** | **1,117,302** | | **Current assets** | | | | Inventories | 107,743 | 57,809 | | Trade receivables | 148,171 | 284,905 | | Cash and cash equivalents | 108,427 | 132,194 | | **Total current assets** | **379,627** | **495,537** | | **Current liabilities** | | | | Trade and other payables | 439,692 | 441,615 | | Borrowings | 401,014 | 347,524 | | **Total current liabilities** | **859,880** | **908,679** | | **Net current liabilities** | **(480,253)** | **(413,142)** | | **Total assets less current liabilities** | **597,686** | **704,160** | | **Non-current liabilities** | | | | Borrowings | 506,783 | 462,012 | | Lease liabilities | 4,233 | 42,127 | | **Total non-current liabilities** | **564,028** | **557,573** | | **Net assets** | **33,658** | **146,587** | | **Total equity** | **33,658** | **146,587** | [Notes to the Condensed Consolidated Financial Statements](index=17&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) [Basis of Preparation](index=17&type=section&id=%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The condensed consolidated financial statements are prepared in accordance with IAS 34 "Interim Financial Reporting" and the applicable disclosure requirements of the Hong Kong Stock Exchange Listing Rules - The condensed consolidated financial statements have been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" issued by the IASB and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[60](index=60&type=chunk) [Principal Accounting Policies](index=17&type=section&id=%E4%B8%BB%E8%A6%81%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The financial statements are prepared on the historical cost basis, except for certain financial instruments measured at fair value, with accounting policies consistent with those in the Prospectus - The condensed consolidated financial statements have been prepared on the historical cost basis, except for certain financial instruments which are measured at fair values[61](index=61&type=chunk) - The accounting policies and methods of computation used in the condensed consolidated financial statements for the six months ended June 30, 2025 are the same as those presented in "Appendix I - Accountant's Report" to the Prospectus[61](index=61&type=chunk) [Revenue from Contracts with Customers](index=17&type=section&id=%E5%AE%A2%E6%88%B6%E5%90%88%E7%B4%84%E6%94%B6%E5%85%A5) For the six months ended June 30, 2025, all revenue from contracts with customers, totaling RMB71,123 thousand, was derived from vaccine sales in Mainland China at a point in time Revenue Analysis | Type/Market/Timing | Six months ended June 30, 2025 (RMB in thousands) | Six months ended June 30, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Sales of vaccine products | 71,123 | 6,978 | | Mainland China | 71,123 | 6,978 | | At a point in time | 71,123 | 6,978 | [Segment Information](index=18&type=section&id=%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The company operates as a single operating segment, with all business activities and non-current assets located in China - The Group has only **one single operating segment**[63](index=63&type=chunk) - As at June 30, 2025, all non-current assets were located in China[64](index=64&type=chunk) [Other Income](index=18&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) Other income for the six months ended June 30, 2025, was RMB5,651 thousand, primarily from government grants and bank interest, a decrease from the prior year Breakdown of Other Income | Item | Six months ended June 30, 2025 (RMB in thousands) | Six months ended June 30, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Government grants - income related | 4,925 | 14,778 | | Government grants - asset related | 422 | 1,349 | | Bank interest income | 122 | 359 | | Others | 182 | 137 | | **Total** | **5,651** | **16,623** | - Income-related government grants are mainly awarded as incentives for the Group's R&D activities[66](index=66&type=chunk) [Other Gains and Losses](index=18&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E5%8F%8A%E8%99%A7%E6%90%8D) For the six months ended June 30, 2025, the company recorded other gains of RMB5,654 thousand, primarily from the termination and modification of leases Breakdown of Other Gains and Losses | Item | Six months ended June 30, 2025 (RMB in thousands) | Six months ended June 30, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Fair value changes on financial assets at FVTPL | 10 | 239 | | Gain (loss) on disposal of property, plant and equipment | 175 | (4) | | Gain on termination and modification of leases | 5,469 | – | | **Total** | **5,654** | **235** | [Loss Per Share](index=19&type=section&id=%E6%AF%8F%E8%82%A1%E8%99%A7%E6%90%8D) For the six months ended June 30, 2025, the basic and diluted loss per share narrowed to RMB0.34 from RMB0.43 in the prior-year period Calculation of Loss Per Share | Metric | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--- | :--- | :--- | | Loss for the period attributable to owners of the Company for basic loss per share calculation (RMB in thousands) | (121,518) | (155,807) | | Weighted average number of ordinary shares for basic loss per share calculation (in thousands) | 360,000 | 360,000 | | Loss per share – basic and diluted (RMB Yuan) | (0.34) | (0.43) | [Trade Receivables](index=19&type=section&id=%E8%B2%A1%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, net trade receivables decreased significantly to RMB148,171 thousand, with a notable shift in the aging profile Trade Receivables Summary | Date | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Trade receivables from contracts with customers | 148,224 | 285,019 | | Less: Allowance for expected credit losses | (53) | (114) | | **Net** | **148,171** | **284,905** | Aging Analysis of Trade Receivables | Aging | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | 1 to 90 days | 38,881 | 50,066 | | 91 to 180 days | 742 | 216,095 | | 181 to 270 days | 22,889 | 13,007 | | 271 to 365 days | 78,697 | 219 | | Over 1 year | 6,962 | 5,518 | | **Total** | **148,171** | **284,905** | [Trade and Other Payables](index=20&type=section&id=%E8%B2%A1%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade and other payables were RMB456,108 thousand, including a new third-party loan of RMB16,054 thousand Breakdown of Trade and Other Payables | Item | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Payables for raw materials and services | 89,383 | 98,385 | | Payables for acquisition of property, plant and equipment | 132,443 | 159,706 | | Payables for marketing activities | 111,563 | 109,929 | | Payroll and welfare payables | 42,141 | 33,500 | | Third-party loans | 16,054 | – | | **Total** | **456,108** | **458,031** | Aging Analysis of Trade Payables | Aging | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | 1 to 30 days | 55,545 | 74,465 | | 31 days to 1 year | 33,838 | 23,920 | | **Total** | **89,383** | **98,385** | [Borrowings](index=21&type=section&id=%E5%80%9F%E6%AC%BE) As of June 30, 2025, total borrowings increased to RMB907,797 thousand, including new bank loans under supplier financing arrangements Breakdown of Borrowings | Item | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Bank borrowings | 895,212 | 809,536 | | Bank borrowings under supplier financing arrangements | 12,585 | – | | **Total** | **907,797** | **809,536** | Analysis of Borrowings | Item | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Bank borrowings – unsecured and unguaranteed | 452,863 | 384,030 | | Bank borrowings – secured and unguaranteed | 454,934 | 375,551 | | Bank borrowings – unsecured and guaranteed | – | 49,955 | | **Total** | **907,797** | **809,536** | | Less: current portion | (401,014) | (347,524) | | Non-current portion | 506,783 | 462,012 | [Other Information](index=22&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) [Interim Dividend](index=22&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board of Directors has recommended that no interim dividend be paid for the reporting period - During the reporting period, the Board recommended **not to declare any interim dividend**[73](index=73&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=22&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) As the company was not listed during the reporting period, the relevant disclosure is not applicable, and no securities were repurchased since the listing date - Disclosure of details on the purchase, sale, or redemption of the Company's listed securities is not applicable as the Company was not yet listed on the Stock Exchange during the reporting period[74](index=74&type=chunk) - From the Listing Date up to the date of this announcement, neither the Company nor any of its subsidiaries had purchased, sold or redeemed any of the Company's listed securities[74](index=74&type=chunk) [Events After the Reporting Period](index=22&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) Subsequent to the reporting period, the company was listed on the Stock Exchange, raised approximately HK$431.4 million, and achieved key clinical and regulatory milestones [Listing on the Stock Exchange](index=22&type=section&id=%E5%9C%A8%E8%81%AF%E4%BA%A4%E6%89%80%E4%B8%8A%E5%B8%82) The company was successfully listed on the Stock Exchange on August 11, 2025, raising total proceeds of approximately HK$431.4 million - On August 11, 2025, the Company was successfully listed on the Stock Exchange after completing the issuance of **33,442,600 H Shares at a price of HK$12.90 per Share**[75](index=75&type=chunk) - The total proceeds from the Listing amounted to approximately **HK$431.4 million**[75](index=75&type=chunk) - The Group will utilize the net proceeds in accordance with the intended purposes set out in the "Future Plans and Use of Proceeds" section of the Prospectus[75](index=75&type=chunk) [Clinical Trials](index=22&type=section&id=%E8%87%A8%E5%BA%8A%E8%A9%A6%E9%A9%97) In July 2025, the company completed the initial safety report for the Phase I trial of its recombinant zoster vaccine and subsequently initiated the Phase II trial - We completed the initial safety report for the **Phase I clinical trial** of our investigational recombinant zoster vaccine in July 2025[76](index=76&type=chunk) - We subsequently commenced the **Phase II clinical trial** for the investigational recombinant zoster vaccine in July 2025[76](index=76&type=chunk) [IND Approval](index=22&type=section&id=IND%E6%89%B9%E5%87%86) On August 15, 2025, the IND application for the company's self-developed recombinant RSV vaccine (CHO Cell) was approved by both the NMPA and the US FDA - On August 15, 2025, the CDE approved the IND application for our self-developed **recombinant RSV vaccine (CHO Cell)**[77](index=77&type=chunk) - In addition, our IND application in the United States has also been approved by the **FDA**[77](index=77&type=chunk) [Compliance with the Corporate Governance Code](index=22&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The company has complied with the Corporate Governance Code since its listing, with the exception of the chairman and CEO roles being held by the same individual - The Company has adopted corporate governance practices based on the principles and code provisions set out in the Corporate Governance Code since the Listing Date[79](index=79&type=chunk) - From the Listing Date up to the date of this announcement, the Company has complied with the applicable code provisions of the Corporate Governance Code, with the exception of code provision C.2.1[79](index=79&type=chunk) - The Board believes that having Mr An Youcai serve as both Chairman and General Manager is in the best interests of the Group for effective management, with sufficient safeguards to ensure a balance of power[79](index=79&type=chunk) [Compliance with the Model Code](index=23&type=section&id=%E9%81%B5%E5%AE%88%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The company has adopted the Model Code for securities transactions by directors and supervisors, who have all confirmed their compliance since the listing date - The Company has adopted the Model Code as its code of conduct for regulating securities transactions by its Directors, Supervisors, and employees with access to inside information since its listing[80](index=80&type=chunk) - Following specific inquiries made by the Board, all Directors and Supervisors have confirmed their compliance with the provisions of the Model Code from the Listing Date up to the date of this announcement[80](index=80&type=chunk) [Continuing Disclosure Obligations under the Listing Rules](index=23&type=section&id=%E6%A0%B9%E6%93%9A%E4%B8%8A%E5%B8%82%E8%A6%8F%E5%89%87%E8%A6%8F%E5%AE%9A%E7%9A%84%E6%8C%81%E7%BA%8C%E6%8A%AB%E9%9C%B2%E7%BE%A9%E5%8B%99) The company has no other disclosure obligations under Listing Rules 13.20, 13.21, and 13.22 beyond what is disclosed in this announcement - Save as disclosed in this announcement, the Company does not have any other disclosure obligations under Rules 13.20, 13.21 and 13.22 of the Listing Rules[81](index=81&type=chunk) [Changes in Information of Directors, Supervisors and Chief Executive](index=23&type=section&id=%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%A3%E4%BA%8B%E5%8F%8A%E6%9C%80%E9%AB%98%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%93%A1%E8%B3%87%E6%96%99%E4%B9%8B%E8%AE%8A%E6%9B%B4) Since the prospectus publication, independent non-executive Director Mr Chan Shing Biu ceased to be an independent director of another company, with no other material changes - Our independent non-executive Director, **Mr Chan Shing Biu**, ceased to be an independent director of Dongguan Huayue Semiconductor Technology Co, Ltd with effect from August 2025[82](index=82&type=chunk) [Sufficient Public Float](index=24&type=section&id=%E5%85%AC%E7%9C%BE%E6%8C%81%E8%82%A1%E9%87%8F%E5%85%85%E8%B6%B3) The company has maintained the required minimum public float of 25% as stipulated by the Listing Rules since its listing date - Based on information available to the Company and to the best knowledge of the Directors, the Company has maintained the public float as required by the Listing Rules from the Listing Date up to the date of this announcement[83](index=83&type=chunk) [Review of Interim Financial Information](index=24&type=section&id=%E5%AF%A9%E9%96%B1%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99) The Group's interim financial statements for the six months ended June 30, 2025, have been reviewed by the independent auditor, Deloitte Touche Tohmatsu - The condensed consolidated interim financial statements of the Group for the six months ended June 30, 2025 have been reviewed by the Company's independent auditor, Deloitte Touche Tohmatsu, in accordance with International Standard on Review Engagements 2410[84](index=84&type=chunk) [Audit Committee](index=24&type=section&id=%E5%AF%A9%E8%A8%88%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee, chaired by Ms Li Xiaoqing, has reviewed the unaudited interim financial statements and confirmed their compliance with applicable standards - The Audit Committee currently consists of independent non-executive Directors Ms Li Xiaoqing, Mr Li Xiangming and Mr Cheng Qianwen, with Ms Li Xiaoqing serving as the chairlady[85](index=85&type=chunk) - The Audit Committee has reviewed the Group's unaudited condensed interim consolidated financial statements for the reporting period and confirmed their compliance with all applicable accounting standards, laws, and regulations[85](index=85&type=chunk) [Publication of Interim Report](index=24&type=section&id=%E5%88%8A%E7%99%BC%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) The interim results announcement is available on the websites of the Stock Exchange and the company, with the interim report to follow in due course - The interim results announcement is published on the website of the Stock Exchange at http://www.hkexnews.hk and on the Company's website at http://www.abbbio.com[86](index=86&type=chunk) - The interim report of the Company for the six months ended June 30, 2025 will be dispatched to the Shareholders and published on the above websites in due course as required[86](index=86&type=chunk) [Definitions, Abbreviations and Technical Glossary](index=24&type=section&id=%E9%87%8B%E7%BE%A9%E3%80%81%E7%B8%AE%E7%95%A5%E8%A9%9E%E5%8F%8A%E6%8A%80%E8%A1%93%E8%A9%9E%E5%BD%99%E8%A1%A8) [Definitions](index=25&type=section&id=%E9%87%8B%E7%BE%A9) This section provides definitions for key terms used throughout the report, including company-specific, regulatory, and financial terminology - Provides definitions for key terms used in the report, such as **"Core Product(s)"** referring to products used to qualify under Chapter 18A of the Listing Rules[88](index=88&type=chunk) - **"Reporting Period"** refers to the six months ended June 30, 2025[89](index=89&type=chunk) [Abbreviations](index=27&type=section&id=%E7%B8%AE%E7%95%A5%E8%A9%9E) This section lists the full names for abbreviations used in the report, including regulatory bodies and health organizations - Lists the full names for abbreviations used in the report, such as **"CDC"** for Center for Disease Control and Prevention and **"FDA"** for the U.S. Food and Drug Administration[91](index=91&type=chunk) [Technical Glossary](index=27&type=section&id=%E6%8A%80%E8%A1%93%E8%A9%9E%E5%BD%99%E8%A1%A8) This section explains specialized technical terms related to vaccinology, biotechnology, and clinical trials used in the report - Provides explanations for technical terms in vaccinology, biotechnology, and clinical trials, such as **"IND"** for Investigational New Drug or an application for a new drug for clinical study[92](index=92&type=chunk) - Explains the definitions and purposes of different clinical trial phases (Phase I, II, III)[92](index=92&type=chunk)[93](index=93&type=chunk) - Defines different types of vaccines and related diseases, such as **"valent"** referring to the number of microbial species a vaccine is designed to protect against[93](index=93&type=chunk)

[Financial Summary](index=1&type=section&id=Financial%20Summary) The company reported a significant increase in revenue and gross profit for the six months ended June 30, 2025, turning a loss into a profit before tax and for the period, with strong growth in net cash from operating activities Financial Summary for the Six Months Ended June 30, 2025 | Indicator | June 30, 2025 (RMB in thousands) | June 30, 2024 (RMB in thousands) | Year-on-year change | | :--- | :--- | :--- | :--- | | Revenue | 620,963 | 410,499 | 51.3% | | Gross Profit | 461,949 | 305,493 | 51.2% | | Profit/(Loss) Before Tax | 59,620 | (47,077) | N/A | | Profit/(Loss) for the Period | 47,999 | (50,673) | N/A | | Profit/(Loss) for the Period Attributable to Equity Holders of the Company | 47,999 | (50,673) | N/A | | Total Comprehensive Income for the Period | 47,961 | (50,901) | N/A | | Earnings/(Loss) Per Share, Basic and Diluted (RMB) | 0.12 | (0.13) | N/A | | Net Cash from Operating Activities | 203,434 | 29,608 | 587.1% | | Net Increase/(Decrease) in Cash and Cash Equivalents | 33,252 | (15,821) | N/A | [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's consolidated financial performance and position for the reporting period, including statements of profit or loss, comprehensive income, and financial position [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company achieved revenue of RMB 620,963 thousand, a 51.3% year-on-year increase, successfully turning a loss into a profit of RMB 47,999 thousand for the period, compared to a loss of RMB 50,673 thousand in the prior year, with gross profit increasing 51.2% to RMB 461,949 thousand and operating profit significantly growing to RMB 107,402 thousand Key Data from Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | June 30, 2025 (RMB in thousands) | June 30, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Revenue | 620,963 | 410,499 | | Cost of Sales | (159,014) | (105,006) | | Gross Profit | 461,949 | 305,493 | | Other Income and Losses, Net | 8,512 | 9,529 | | Net Change in Fair Value of Biological Assets | 20,796 | 6,483 | | Selling and Marketing Expenses | (58,515) | (42,472) | | General and Administrative Expenses | (116,231) | (102,618) | | Research and Development Expenses | (209,109) | (161,679) | | Operating Profit | 107,402 | 14,736 | | Finance Costs | (35,926) | (52,728) | | Share of Loss of Associates | (11,856) | (9,085) | | Profit/(Loss) Before Tax | 59,620 | (47,077) | | Income Tax | (11,621) | (3,596) | | Profit/(Loss) for the Period | 47,999 | (50,673) | | Total Comprehensive Income for the Period | 47,961 | (50,901) | | Earnings/(Loss) Per Share, Basic and Diluted (RMB) | 0.12 | (0.13) | [Consolidated Statement of Financial Position](index=4&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets less current liabilities amounted to RMB 2,016,749 thousand, an increase from December 31, 2024, with net current assets significantly rising to RMB 418,607 thousand primarily due to increased bank and cash balances, and total equity growing to RMB 896,584 thousand Key Data from Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 1,353,378 | 1,349,489 | | Intangible Assets | 16,979 | 20,665 | | Interests in Associates | 147,893 | 159,038 | | Other Non-current Assets | 79,352 | 68,630 | | Deferred Tax Assets | 540 | 957 | | **Current Assets** | | | | Inventories | 5,899 | 3,890 | | Contract Costs | 41,703 | 49,654 | | Biological Assets | 121,271 | 99,667 | | Trade and Bills Receivables | 201,083 | 229,608 | | Prepayments and Other Receivables | 40,339 | 29,866 | | Bank and Cash Balances | 479,572 | 403,850 | | **Current Liabilities** | | | | Trade and Bills Payables | 104,620 | 115,479 | | Contract Liabilities | 109,075 | 102,188 | | Other Payables | 73,037 | 87,237 | | Bank and Other Borrowings | 153,802 | 208,138 | | Lease Liabilities | 30,726 | 17,857 | | Current Tax | – | 4,014 | | **Non-current Liabilities** | | | | Deferred Revenue | 83,967 | 84,902 | | Lease Liabilities | 181,636 | 150,447 | | Long-term Payables | 606,548 | 612,616 | | Bank and Other Borrowings | 248,014 | 193,835 | | **Equity** | | | | Share Capital | 399,398 | 399,398 | | Reserves | 492,641 | 434,658 | | Total Equity Attributable to Equity Holders of the Company | 892,039 | 834,056 | | Non-controlling Interests | 4,545 | 4,545 | | Total Equity | 896,584 | 838,601 | [Notes to the Financial Statements](index=6&type=section&id=Notes%20to%20the%20Financial%20Statements) This section provides detailed explanations and disclosures regarding the company's accounting policies, revenue breakdown, segment information, and other financial items supporting the consolidated financial statements [General Information](index=6&type=section&id=General%20Information) Biocytogen Pharmaceuticals (Beijing) Co., Ltd. was established in 2009, restructured into a joint-stock company in 2020, and listed on the Hong Kong Stock Exchange in 2022, with its group primarily engaged in gene editing services, preclinical pharmacological efficacy evaluation, model animal sales, antibody development, and innovative biopharmaceutical research and development - The company was incorporated in China on November 13, 2009, restructured into a joint-stock company on December 29, 2020, and listed on the Main Board of the Hong Kong Stock Exchange on September 1, 2022[8](index=8&type=chunk) - The Group's principal activities include gene editing services, preclinical pharmacological efficacy evaluation services, model animal sales, antibody development, and innovative biopharmaceutical research and development[8](index=8&type=chunk) [Basis of Preparation](index=6&type=section&id=Basis%20of%20Preparation) This interim financial report is prepared in accordance with the Hong Kong Stock Exchange Listing Rules and International Accounting Standard 34, authorized for issue on August 28, 2025, and has been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410, though it remains unaudited - This interim financial report is prepared in accordance with the Listing Rules of the Hong Kong Stock Exchange and International Accounting Standard 34 "Interim Financial Reporting"[9](index=9&type=chunk) - The report is unaudited but has been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410[9](index=9&type=chunk) [Changes in Accounting Policies](index=6&type=section&id=Changes%20in%20Accounting%20Policies) The Group has applied HKAS 21 (Amendment) – The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability, which has no material impact on this interim report due to the absence of relevant foreign currency transactions, and no new standards or interpretations not yet effective have been applied in this accounting period - The Group has applied HKAS 21 (Amendment) – The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability, but it has no material impact on this interim report[10](index=10&type=chunk) - No new standards or interpretations not yet effective have been applied in this accounting period[11](index=11&type=chunk) [Revenue and Segment Reporting](index=7&type=section&id=Revenue%20and%20Segment%20Reporting) The Group's revenue primarily stems from gene editing, preclinical pharmacological efficacy evaluation, model animal sales, and antibody development services, totaling RMB 620,963 thousand for the six months ended June 30, 2025, with model animal sales contributing the most, followed by antibody development and preclinical pharmacological efficacy evaluation, and the US being the largest overseas market - The Group currently has no products approved for commercial sale and has not generated any revenue from the sale of innovative drugs[12](index=12&type=chunk) [Revenue](index=7&type=section&id=Revenue) For the six months ended June 30, 2025, the Group's total revenue was RMB 620,963 thousand, with model animal sales contributing RMB 274,426 thousand, antibody development RMB 162,863 thousand, and preclinical pharmacological efficacy evaluation RMB 155,031 thousand, and one customer's transactions accounted for over 10% of total revenue Revenue from Contracts with Customers by Major Service Line | Service Line | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Gene Editing | 28,617 | 34,606 | | Preclinical Pharmacological Efficacy Evaluation | 155,031 | 81,552 | | Model Animal Sales | 274,426 | 175,772 | | Antibody Development | 162,863 | 118,200 | | Others | 26 | 369 | | **Total** | **620,963** | **410,499** | - For the six months ended June 30, 2025, transactions with one customer accounted for over **10%** of the Group's revenue, totaling **RMB 88,483,000**[13](index=13&type=chunk) [Segment Reporting](index=7&type=section&id=Segment%20Reporting) The Group manages its business across five reportable segments: gene editing services, preclinical pharmacological efficacy evaluation, model animal sales, antibody development, and innovative drug development, with total reportable segment gross profit amounting to RMB 465,394 thousand in the first half of 2025, measured by gross profit - The Group has five reportable segments: gene editing services, preclinical pharmacological efficacy evaluation, model animal sales, antibody development, and innovative drug development[13](index=13&type=chunk)[14](index=14&type=chunk) - Segment results are measured by gross profit, while other operating income and expenses, assets, and liabilities are not measured by individual segments[15](index=15&type=chunk) Revenue and Gross Profit by Reportable Segment (For the six months ended June 30, 2025) | Segment | Revenue from External Customers (RMB in thousands) | Reportable Segment Gross Profit (RMB in thousands) | | :--- | :--- | :--- | | Gene Editing | 28,617 | 16,693 | | Preclinical Pharmacological Efficacy Evaluation | 155,031 | 77,298 | | Model Animal Sales | 274,426 | 228,063 | | Antibody Development | 162,863 | 143,314 | | Innovative Drug Development | – | – | | Others | 26 | 26 | | **Total** | **620,963** | **465,394** | Reconciliation of Reportable Segment Gross Profit | Indicator | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Reportable Segment Gross Profit | 465,394 | 306,730 | | Elimination of Inter-segment Gross Profit | (3,445) | (1,237) | | **Consolidated Gross Profit** | **461,949** | **305,493** | [Geographical Information](index=9&type=section&id=Geographical%20Information) The Group's revenue from external customers primarily originates from China and the United States, with the US contributing RMB 322,697 thousand and China RMB 199,474 thousand for the six months ended June 30, 2025, while non-current assets are mainly located in China Geographical Information of Revenue from External Customers | Region | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | China | 199,474 | 116,968 | | United States of America ("US") | 322,697 | 218,444 | | Others | 98,792 | 75,087 | | **Total** | **620,963** | **410,499** | Geographical Location of Specific Non-current Assets | Region | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | China | 1,199,250 | 1,189,091 | | US | 170,744 | 181,025 | | Others | 363 | 38 | | **Total** | **1,370,357** | **1,370,154** | [Other Income and Losses, Net](index=10&type=section&id=Other%20Income%20and%20Losses%2C%20Net) For the six months ended June 30, 2025, other income and losses, net, totaled approximately RMB 8.5 million, a 10.5% decrease from the prior year, primarily due to reduced interest income and net exchange gains Details of Other Income and Losses, Net | Item | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Net Gain on Disposal of Property, Plant and Equipment | 920 | – | | Fair Value Changes of Financial Assets at Fair Value Through Profit or Loss | 2,209 | (901) | | Interest Income | 2,360 | 3,448 | | Government Grants (including amortization of deferred income) | 2,442 | 2,333 | | Net Exchange Gain | 581 | 4,649 | | **Total** | **8,512** | **9,529** | - Other income and losses, net, decreased by **10.5%**, primarily due to reduced interest income and net exchange gains[110](index=110&type=chunk) [Net Change in Fair Value of Biological Assets](index=10&type=section&id=Net%20Change%20in%20Fair%20Value%20of%20Biological%20Assets) For the six months ended June 30, 2025, the net change in fair value of biological assets significantly increased by 220.0% to approximately RMB 20.8 million, mainly due to higher inventory levels of humanized mice, with the fair value change comprising realized negative and unrealized positive changes - The net change in fair value of biological assets increased by **220.0%** from approximately **RMB 6.5 million** in the prior year to approximately **RMB 20.8 million** for the six months ended June 30, 2025[111](index=111&type=chunk) - The increase is primarily attributable to a higher inventory level of humanized mice for the six months ended June 30, 2025, compared to the prior year[111](index=111&type=chunk) - The net change in fair value includes a realized negative fair value change of **RMB 79,015,000** and an unrealized positive fair value change of **RMB 99,811,000**[21](index=21&type=chunk) [Profit/(Loss) Before Tax](index=10&type=section&id=Profit%2F%28Loss%29%20Before%20Tax) The profit/(loss) before tax is calculated after deducting finance costs, staff costs, and other items; for the six months ended June 30, 2025, finance costs decreased by 31.9%, staff costs increased due to higher salaries and share-based payment expenses, while depreciation expenses remained stable [Finance Costs](index=10&type=section&id=Finance%20Costs) For the six months ended June 30, 2025, finance costs amounted to RMB 35,926 thousand, a 31.9% decrease from RMB 52,728 thousand in the prior year, primarily due to reduced interest on long-term payables Details of Finance Costs | Item | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Interest on Long-term Payables | 21,711 | 36,797 | | Interest on Lease Liabilities | 6,661 | 7,143 | | Interest on Bank and Other Borrowings | 7,554 | 8,788 | | **Total** | **35,926** | **52,728** | - Finance costs decreased by **31.9%**, primarily due to reduced interest on long-term payables[116](index=116&type=chunk) [Staff Costs](index=11&type=section&id=Staff%20Costs) For the six months ended June 30, 2025, staff costs increased significantly to RMB 222,121 thousand from RMB 152,229 thousand in the prior year, mainly due to higher salaries, wages, other benefits, and equity-settled share-based payment expenses Details of Staff Costs | Item | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Salaries, Wages and Other Benefits | 187,672 | 133,097 | | Contributions to Defined Contribution Retirement Plans | 15,137 | 14,044 | | Equity-settled Share-based Payment Expenses | 19,312 | 5,088 | | **Total** | **222,121** | **152,229** | - The company and its PRC subsidiaries participate in defined contribution retirement plans for employees, while its US subsidiary implements a 401(k) savings plan with matching contributions for US employees[23](index=23&type=chunk) [Other Items](index=11&type=section&id=Other%20Items) For the six months ended June 30, 2025, depreciation of property, plant and equipment was RMB 81,363 thousand, remaining largely consistent with the prior year, while impairment loss recognized on trade and other receivables decreased Details of Other Items | Item | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Depreciation of Property, Plant and Equipment | 81,363 | 81,573 | | Amortization of Intangible Assets | 3,736 | 3,888 | | Impairment Loss Recognized on Trade and Other Receivables | 2,260 | 3,795 | | Provision for Write-down of Inventories and Contract Costs | 5,884 | 5,442 | | Cost of Inventories | 84,193 | 50,144 | [Income Tax in Consolidated Statement of Profit or Loss](index=11&type=section&id=Income%20Tax%20in%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, income tax expense increased to RMB 11,621 thousand, primarily due to higher foreign withholding tax, which mainly applies to antibody licensing income generated in the US, South Korea, and other countries Details of Income Tax in Consolidated Statement of Profit or Loss | Item | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Current Tax - Provision for Income Tax for the Period | 1,397 | 381 | | Current Tax - Foreign Withholding Tax | 9,810 | 3,716 | | Deferred Tax - Temporary Differences Arising and Reversing | 414 | (501) | | **Total** | **11,621** | **3,596** | - Foreign withholding tax primarily applies to the Group's antibody licensing income generated in the US, South Korea, and certain other countries[26](index=26&type=chunk) [Earnings/(Loss) Per Share](index=12&type=section&id=Earnings%2F%28Loss%29%20Per%20Share) For the six months ended June 30, 2025, the company achieved basic earnings per share of RMB 0.12, a significant improvement from a loss of RMB 0.13 per share in the prior year, with no diluted earnings per share presented due to the absence of potential dilutive ordinary shares during the reporting period [Basic Earnings/(Loss) Per Share](index=12&type=section&id=Basic%20Earnings%2F%28Loss%29%20Per%20Share) For the six months ended June 30, 2025, basic earnings per share were RMB 0.12, calculated based on profit attributable to equity holders of the company of RMB 47,999 thousand and a weighted average of 396,257 thousand ordinary shares - For the six months ended June 30, 2025, basic earnings per share were **RMB 0.12**, compared to a loss of **RMB 0.13** per share in the prior year[27](index=27&type=chunk) - The calculation is based on profit attributable to ordinary equity holders of the company of **RMB 47,999 thousand** and a weighted average of **396,257 thousand** ordinary shares outstanding[27](index=27&type=chunk) [Diluted Earnings Per Share](index=12&type=section&id=Diluted%20Earnings%20Per%20Share) Diluted earnings per share are not presented for the six months ended June 30, 2025, and 2024, as there were no potential dilutive ordinary shares during these periods - Diluted earnings per share are not presented for the six months ended June 30, 2025, and 2024, as there were no potential dilutive ordinary shares during these periods[28](index=28&type=chunk) [Trade and Bills Receivables](index=12&type=section&id=Trade%20and%20Bills%20Receivables) As of June 30, 2025, total trade and bills receivables amounted to RMB 201,083 thousand, a decrease from RMB 229,608 thousand as of December 31, 2024, primarily due to a significant reduction in trade receivables from related parties Details of Trade and Bills Receivables | Item | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Trade Receivables - Third Parties | 223,410 | 209,899 | | Trade Receivables - Related Parties | 134 | 40,441 | | Less: Loss Allowance | (22,496) | (20,892) | | Bills Receivable | 35 | 160 | | **Total** | **201,083** | **229,608** | [Ageing Analysis of Trade Receivables](index=12&type=section&id=Ageing%20Analysis%20of%20Trade%20Receivables) The Group generally offers credit terms of 0 to 90 days, with trade receivables within 1 year amounting to RMB 185,609 thousand as of June 30, 2025, constituting the majority of the total Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Within 1 year | 185,609 | 211,549 | | 1 to 2 years | 9,490 | 12,039 | | 2 to 3 years | 5,949 | 5,860 | | **Total** | **201,048** | **229,448** | - The Group generally offers credit terms of **0 to 90 days** to its trade customers[30](index=30&type=chunk) [Trade and Bills Payables](index=13&type=section&id=Trade%20and%20Bills%20Payables) As of June 30, 2025, total trade and bills payables amounted to RMB 104,620 thousand, a decrease from RMB 115,479 thousand as of December 31, 2024 Details of Trade and Bills Payables | Item | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Trade Payables - Third Parties | 74,519 | 69,663 | | Bills Payable | 30,101 | 45,816 | | **Total** | **104,620** | **115,479** | [Ageing Analysis](index=13&type=section&id=Ageing%20Analysis) As of June 30, 2025, trade payables within 1 year amounted to RMB 95,158 thousand, representing the vast majority of the total Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Within 1 year | 95,158 | 106,118 | | 1 to 2 years | 5,695 | 7,358 | | 2 to 3 years | 3,009 | 1,532 | | Over 3 years | 758 | 471 | | **Total** | **104,620** | **115,479** | [Capital, Reserves and Dividends](index=13&type=section&id=Capital%2C%20Reserves%20and%20Dividends) For the six months ended June 30, 2025, the company did not declare or pay dividends, and the number of unexercised shares held by the trustee under the 2022 Share Award Scheme increased as of the end of the reporting period [Dividends](index=13&type=section&id=Dividends) For the six months ended June 30, 2025, the company did not declare or pay any interim dividends - For the six months ended June 30, 2025, the company did not declare or pay any dividends (for the six months ended June 30, 2024: nil)[33](index=33&type=chunk) [Treasury Shares (Shares Held for Share Award Scheme)](index=13&type=section&id=Treasury%20Shares%20%28Shares%20Held%20for%20Share%20Award%20Scheme%29) The company has a 2022 Share Award Scheme, with the trustee holding shares to administer the plan; as of June 30, 2025, the trustee held 3,266,607 unexercised shares at a total cost of RMB 40,181 thousand - The company approved the 2022 Share Award Scheme on October 17, 2022, valid until November 7, 2032[34](index=34&type=chunk) - As of June 30, 2025, the trustee held **3,266,607 shares** (December 31, 2024: 2,509,644 shares) for the 2022 Share Award Scheme, with a total cost of **RMB 40,181 thousand**[34](index=34&type=chunk) - For the six months ended June 30, 2025, a total of **199,037 shares** were unlocked and transferred to employees[34](index=34&type=chunk) [Management Discussion and Analysis](index=14&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a comprehensive review of the company's business operations, financial performance, and strategic outlook for the reporting period [I. Business Review](index=14&type=section&id=I.%20Business%20Review) Biocytogen is a global biotechnology company focused on novel antibody drug research and development and preclinical research services, achieving strong performance in the first half of 2025 with a 51.3% year-on-year increase in operating revenue to RMB 621.0 million, a turnaround to net profit exceeding last year's full-year level, and positive net cash flow for the first time, signaling entry into a virtuous cycle of endogenous growth - The company is headquartered in Beijing, with branches in China, the US, and Germany, dedicated to novel antibody drug research and development and preclinical research services[35](index=35&type=chunk) - In the first half of 2025, operating revenue reached **RMB 621.0 million**, a **51.3%** year-on-year increase; net profit was **RMB 48.0 million**, turning a loss into profit and exceeding last year's full-year level[36](index=36&type=chunk) - Net cash inflow from operating activities was **RMB 203.4 million**, and net cash flow was **RMB 33.3 million**, with overall cash flow turning positive, marking the company's entry into a virtuous cycle of endogenous growth[36](index=36&type=chunk) [Overview](index=14&type=section&id=Overview) The company has established a "dual-driven" business ecosystem of preclinical products and services and antibody discovery, both achieving high growth, with preclinical products and services revenue reaching RMB 458.1 million (56.9% growth) and antibody discovery revenue RMB 162.9 million (37.8% growth), while maintaining high R&D investment and actively expanding into overseas markets for a global footprint - The company has established a "dual-driven" business ecosystem of preclinical products and services and antibody discovery, achieving bidirectional empowerment through technological synergy and resource linkage[37](index=37&type=chunk) - Preclinical products and services business achieved operating revenue of **RMB 458.1 million**, a **56.9%** year-on-year increase, with a gross margin of approximately **70%**[37](index=37&type=chunk) - Antibody discovery business achieved operating revenue of **RMB 162.9 million**, a **37.8%** year-on-year increase, with a gross margin of approximately **90%**[38](index=38&type=chunk) - As of June 30, 2025, approximately **280 therapeutic antibody** and various clinical asset co-development/licensing/transfer agreements have been signed, with approximately **80 new agreements** signed in the first half of 2025, a year-on-year increase of approximately **60%**[38](index=38&type=chunk) - Overseas business achieved operating revenue of **RMB 421.5 million**, and domestic business achieved operating revenue of **RMB 199.5 million**, with global presence enhancing business resilience[38](index=38&type=chunk) - R&D expenses for the first half of 2025 were **RMB 209.1 million**, an increase of **RMB 47.4 million** from the prior year, with an R&D expense ratio exceeding **30%**[39](index=39&type=chunk) - The company completed the initial R&D work for Project Integrum (Thousand-Mouse-Antibody Project) by the end of Q3 2023 and has built a vast antibody sequence library, with approximately **280 co-development/licensed-out/transferred development agreements** reached as of June 30, 2025[42](index=42&type=chunk) - The company currently has no plans to invest its own resources to lead the continued development of pipeline drug candidates, opting instead to entrust partners to advance late-stage clinical development and future commercialization[43](index=43&type=chunk) [Self-developed Products](index=19&type=section&id=Self-developed%20Products) The company possesses multiple clinical and preclinical stage self-developed antibody drug pipelines, including core products YH001 and YH003, as well as several bispecific antibodies and ADC drugs co-developed with partners, primarily focusing on oncology and autoimmune disease treatments, and accelerating development through external licensing collaborations Product Pipeline and Development Status | Pipeline Project | Target | Indication | Preclinical | Phase I | Phase II | Phase III | Collaborator | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | YH001 | CTLA-4 | Oncology | | ● | | | Syncromune, Inc. | | YH002 | OX40 | Oncology | | ● | | | Syncromune, Inc. | | YH003 | CD40 | Oncology | | ● | ● | | Syncromune, Inc. | | YH004 | 4-1BB | Oncology | | ● | | | | | YH008 | PD-1 x CD40 Bispecific Antibody | Oncology | | ● | | | RemeGen Co., Ltd. | | YH013 | EGFR x MET Bispecific ADC | Oncology | ● | | | | Doma | | YH012 | HER2 x TROP2 Bispecific ADC | Oncology | ● | | | | Licensed Out/Collaboration | | YH015 | CD40 Inhibitor | Immunological Diseases | ● | | | | | | YH016 | Undisclosed | Oncology | ● | | | | Licensed Out/Collaboration | | YH017 | Undisclosed | Immunological Diseases | ● | | | | Licensed Out/Collaboration | [Core Products](index=19&type=section&id=Core%20Products) YH001 and YH003 are the company's core products; YH001, a humanized anti-CTLA-4 IgG1 monoclonal antibody, has completed Phase I clinical trials and is being co-developed with Syncromune for intratumoral injection products, while YH003, a humanized IgG2 agonistic monoclonal antibody targeting CD40, has completed multiple Phase I/II clinical trials and is also in collaboration with Syncromune - YH001 has completed Phase I clinical trials in Australia and Phase I clinical trials as a monotherapy for advanced solid tumors in China, showing good tolerability and anti-tumor activity[49](index=49&type=chunk) - The company signed a licensing agreement with Syncromune to develop intratumoral injection products using YH001, YH002, and YH003 as active ingredients via Syncrovax™ technology, with SYNC-T SV-102 therapy receiving US FDA Fast Track designation[50](index=50&type=chunk) - YH003 has completed multiple Phase I/II clinical trials in Australia, the US, mainland China, and other regions, evaluating its safety and efficacy in combination with toripalimab for advanced solid tumors and pancreatic ductal adenocarcinoma, demonstrating good safety and tolerability, and achieving promising clinical efficacy[52](index=52&type=chunk) [Other Products](index=20&type=section&id=Other%20Products) The company also has several other pipeline products, including YH002 (anti-OX40 mAb), YH004 (anti-4-1BB agonist), YH005 (anti-Claudin 18.2 ADC with RemeGen), YH008 (PD-1 x CD40 bispecific antibody with Chipscreen Biosciences), YH012 (HER2/TROP2 bispecific ADC), YH013 (EGFR/MET bispecific ADC), YH015 (CD40 inhibitor), and novel molecules YH016 and YH017, with many having external collaborations or licensing agreements - YH002, an anti-OX40 monoclonal antibody, has completed a Phase I dose-escalation study in Australia, demonstrating good safety and tolerability[53](index=53&type=chunk) - YH004, a humanized anti-4-1BB agonist, has completed a Phase I study in China, with the company seeking partners for further development[55](index=55&type=chunk) - YH005 (RC118) has been licensed to RemeGen for development, received two US FDA Orphan Drug Designations, and was approved by the CDE for Phase I/IIa clinical studies[56](index=56&type=chunk) - YH008 bispecific antibody has been exclusively licensed to Chipscreen Biosciences for development and commercialization in Greater China, with Phase I patient enrollment commencing in January 2024[57](index=57&type=chunk) - YH012 (HER2/TROP2 bispecific ADC) and YH013 (EGFR/MET bispecific ADC) are bispecific ADCs developed based on the RenLite platform, with option and licensing agreements reached with external collaborators[59](index=59&type=chunk)[60](index=60&type=chunk) - YH015, a fully human IgG1 antagonistic monoclonal antibody targeting CD40, is currently in the CMC stage, with the company seeking partners for future development[61](index=61&type=chunk) - YH016 (oncology) and YH017 (immunological diseases) are novel fully human antibody molecules developed using the RenMice® platform, with option and licensing agreements reached with various partners[62](index=62&type=chunk) [Preclinical Research Services and Products](index=23&type=section&id=Preclinical%20Research%20Services%20and%20Products) The Group's preclinical research services and products include model animal sales, preclinical pharmacological efficacy evaluation, and custom gene editing services, with the company continuously expanding model animal categories, growing its overseas sales team, and enlarging its Boston, US, experimental base, achieving significant sales growth and high gross margins - Preclinical research services and products represent a significant business segment for the company, providing operating cash flow through rapid sales growth and high-profit margins[64](index=64&type=chunk) - The company has expanded its overseas sales team and enlarged its Boston, US, experimental base, achieving significant sales growth during the reporting period[64](index=64&type=chunk) [Model Animal Sales](index=23&type=section&id=Model%20Animal%20Sales) Leveraging gene editing technology, the company has created a comprehensive range of antibody discovery and disease mouse models, including approximately 4,390 unique gene-edited mouse/cell line projects, launching hundreds of new model animals annually, primarily focused on oncology and autoimmune diseases, while actively exploring neurological, cardiovascular, and metabolic disease areas - The company has created a comprehensive range of antibody discovery and disease mouse models, including approximately **4,390 unique gene-edited mouse/cell line projects**[65](index=65&type=chunk) - Hundreds of new model animals are continuously launched to the market annually, while expanding domestic and international customer bases[65](index=65&type=chunk) - Current model animal disease types primarily focus on oncology and autoimmune diseases, with active expansion into neurological, cardiovascular, and metabolic disease areas[66](index=66&type=chunk) [Humanized Mice](index=24&type=section&id=Humanized%20Mice) The company has developed a series of immune checkpoint and cytokine humanized mice to address species differences, enabling human antibody drugs to elicit normal pharmacological responses in mice, thereby providing effective models for drug validation - The company has developed a series of immune checkpoint and other humanized mice based on the C57BL/6 genetic background, ensuring fully humanized mouse models[67](index=67&type=chunk) - By humanizing key cytokines or cytokine receptors in mice, the efficacy and pharmacological effects of human cytokine or cytokine receptor antibody drugs can be evaluated in mice[68](index=68&type=chunk) [Severely Immunodeficient (B-NDG) Mice](index=25&type=section&id=Severely%20Immunodeficient%20%28B-NDG%29%20Mice) The company's independently developed B-NDG mice exhibit severe immunodeficiency, lacking mature T, B, and NK cells, making them ideal drug development vehicles for human hematopoietic stem cell, human peripheral blood mononuclear cell, human tumor cell, or tissue transplantation - B-NDG mice exhibit severe immunodeficiency, lacking mature T, B, and NK cells, making them ideal drug development vehicles for human hematopoietic stem cell, human peripheral blood mononuclear cell, human tumor cell, or tissue transplantation[69](index=69&type=chunk) - The company typically enters into framework agreements with customers for one to five years and accepts customer work orders under these agreements[69](index=69&type=chunk) [Human Immune System Reconstitution Models](index=25&type=section&id=Human%20Immune%20System%20Reconstitution%20Models) Based on B-NDG mice, the company has developed a series of second-generation products, such as B-NDG B2m KO plus mice and B-NDG hIL15 mice, to address issues like hematopoietic cell differentiation maintenance and restricted immune cell development in severely immunodeficient mice, meeting diverse research needs - The company has developed a series of second-generation products based on B-NDG mice to address issues such as hematopoietic cell differentiation maintenance and restricted immune cell development in severely immunodeficient mice[70](index=70&type=chunk) - For example, B-NDG B2m KO plus mice can delay GVHD effects in PBMC reconstitution models, and B-NDG hIL15 mice can better promote human NK cell immune reconstitution[70](index=70&type=chunk) [Preclinical Pharmacological Efficacy Evaluation](index=26&type=section&id=Preclinical%20Pharmacological%20Efficacy%20Evaluation) The company provides comprehensive preclinical pharmacology services, including in vivo efficacy, PK/PD, biomarker evaluation, toxicology and safety assessment, and in vitro immune cell and cytokine analysis, having completed over 6,350 drug evaluation projects for approximately 950 global partners as of June 30, 2025 - The company's pharmacology team has accumulated expertise in testing new therapies, supporting global drug R&D, utilizing a large number of gene humanized mouse models and severely immunodeficient B-NDG mice[71](index=71&type=chunk) - Services include in vivo efficacy, PK/PD, biomarker evaluation, toxicology and safety assessment, and in vitro immune cell and cytokine analysis[71](index=71&type=chunk) - As of June 30, 2025, over **6,350 drug evaluation projects** have been completed for approximately **950 global partners**[71](index=71&type=chunk) [In Vivo Pharmacology Capabilities](index=26&type=section&id=In%20Vivo%20Pharmacology%20Capabilities) The in vivo pharmacology team has successfully developed and validated hundreds of syngeneic and allogeneic tumor models, covering a wide range of immunotherapy areas, and has expanded research and services to include immune and autoimmune diseases, CNS, ophthalmology, metabolic, and kidney disease models - The in vivo pharmacology team has successfully developed and validated hundreds of syngeneic and allogeneic tumor models, covering a wide range of immunotherapy areas[73](index=73&type=chunk) - Services have expanded to include immune and autoimmune diseases, CNS diseases, ophthalmological diseases, metabolic disease models, and kidney disease models[73](index=73&type=chunk) [Pharmacokinetics (PK) and Pharmacodynamics (PD)](index=27&type=section&id=Pharmacokinetics%20%28PK%29%20and%20Pharmacodynamics%20%28PD%29) The company has established a comprehensive PK/PD service platform, utilizing target humanized mice and FcRn humanized mice to conduct a range of PK/PD studies, characterizing drug exposure, predicting dose requirements, understanding concentration-effect relationships, and supporting drug development and clinical trials - The company has established a comprehensive PK/PD service platform, utilizing target humanized mice and FcRn humanized mice to address the issue of human antibody PK parameters being unsuitable in animal species[75](index=75&type=chunk) - PK/PD evaluation is also supported by in vitro capabilities, including cell-based assays such as ADCC and CDC[75](index=75&type=chunk) [Small Animal Toxicology and Safety Studies](index=27&type=section&id=Small%20Animal%20Toxicology%20and%20Safety%20Studies) The company has established a toxicology and safety assessment platform using humanized mice and highly immunodeficient B-NDG mice, providing comprehensive toxicology and safety readouts to support predictive data for drug candidate evaluation and guide clinical study design - The company has established a toxicology and safety assessment platform using humanized mice and highly immunodeficient B-NDG mice[76](index=76&type=chunk) - Comprehensive toxicology and safety readouts include blood biochemical liver and kidney function assessment, histopathological assessment, cytokine release syndrome (CRS) assessment, anti-drug antibody (ADA) testing, and more[76](index=76&type=chunk) [Gene Editing](index=27&type=section&id=Gene%20Editing) Gene editing technology is the cornerstone of the company's antibody R&D platform, utilizing advanced techniques to develop the transgenic RenMice® platform and Project Integrum (Thousand-Mouse-Antibody Project); the company offers custom gene editing services based on animal and cell lines, having completed approximately 5,300 custom projects and internally developed about 4,390 model products - Gene editing technology lays a solid foundation for the antibody R&D platform, utilizing advanced techniques to propose Project Integrum (Thousand-Mouse-Antibody Project) and develop the transgenic RenMice® platform[77](index=77&type=chunk)[79](index=79&type=chunk) - The company provides custom gene editing services based on rat/mouse and cell lines, having completed approximately **5,300 custom gene editing projects** and internally developed approximately **4,390 gene-edited animal and cell model products**[79](index=79&type=chunk)[80](index=80&type=chunk) [Our Gene Editing Technologies](index=28&type=section&id=Our%20Gene%20Editing%20Technologies) The company has developed robust gene editing platforms, SUPCE, CRISPR/EGE, and ESC/HR, which drive technological innovation and have been successfully applied in the development of the RenMice® platform - The company has developed robust gene editing platforms, SUPCE, CRISPR/EGE, and ESC/HR, which are drivers of technological innovation[79](index=79&type=chunk) [Custom Services](index=28&type=section&id=Custom%20Services) The company primarily offers custom gene editing services based on rat/mouse and cell lines, with the final products being animal or cell line models with specific genotypes, covering various rat/mouse strains and cell lines, and providing supporting experimental services - The company primarily offers custom gene editing services based on rat/mouse and cell lines, with the final products being animal or cell line models with specific genotypes[80](index=80&type=chunk) - Mouse strains for gene editing services primarily include C57BL/6, BALB/c, DBA2, and NOD-scid, while rat strains primarily include Sprague Dawley and Wistar[80](index=80&type=chunk) [RenMice® Platform for Generating Rich Fully Human Antibody Libraries](index=29&type=section&id=RenMice%C2%AE%20Platform%20for%20Generating%20Rich%20Fully%20Human%20Antibody%20Libraries) The RenMice® platform is the company's core technology for generating rich fully human monoclonal and bispecific antibody libraries, including RenMab, RenLite, and RenNano, as well as RenTCRm and GPCR platforms, having secured multiple patents and entered into licensing and trial collaboration agreements with dozens of renowned multinational pharmaceutical companies - The RenMice® platform consists of several different chromosome-engineered mice with fully human immunoglobulin variable regions, including RenMab, RenLite, and RenNano[82](index=82&type=chunk) - As of June 30, 2025, licensing and trial collaboration agreements have been reached with dozens of renowned multinational pharmaceutical companies and leading pharmaceutical companies[83](index=83&type=chunk) - The RenMab platform obtained Chinese and US patents in 2023, and a Japanese patent in 2025[85](index=85&type=chunk) - The RenLite platform obtained US patent authorization in 2024, with its single fixed human common kappa light chain design addressing the light chain mismatch issue in bispecific antibodies[86](index=86&type=chunk) - The RenNano platform utilizes RenNano mice to produce heavy chain antibodies, whose generated fully human single-chain antibody fragment sequences do not require in vitro humanization modification[87](index=87&type=chunk) - The RenTCRm platform, based on HLA/RenMab, aims to break through the limitations of traditional antibody therapy, precisely identifying intracellular MAP epitopes and producing fully human antibodies against intracellular antigens[88](index=88&type=chunk) - The GPCR platform, developed based on RenMice®, addresses the challenges of obtaining GPCR and transmembrane protein antibodies through DNA immunization and target knockout RenMice (RenMice KO)[89](index=89&type=chunk) [Marketing and Business Development](index=32&type=section&id=Marketing%20and%20Business%20Development) The company acquires business through its marketing and business development teams and customer referrals, establishing a sales system covering Asia-Pacific, North America, and Europe, actively expanding overseas markets, enlarging its Boston R&D and production facilities, and maintaining long-term business collaborations with all top ten overseas pharmaceutical companies - The company has established a sales system covering Asia-Pacific, North America, and Europe, continuously expanding overseas markets and maintaining rapid growth in overseas sales revenue[90](index=90&type=chunk) - The company is expanding its R&D and production facilities in Boston and growing its Boston subsidiary's R&D and production team to provide localized services[90](index=90&type=chunk) - Since 2022, the company has optimized and upgraded its North American and European sales networks, establishing a subsidiary in Heidelberg, Germany, and offices in San Francisco and San Diego, US[91](index=91&type=chunk) - The antibody development business has maintained rapid growth since 2020, with its customer base expanding from well-known domestic biotechnology companies to globally renowned pharmaceutical companies[91](index=91&type=chunk) [Production](index=33&type=section&id=Production) The company has established model animal production centers, encompassing approximately 55,000 square meters of animal facilities, offering significant cost advantages, and collaborates with CROs and CDMOs to support asset product R&D and clinical trials - The company has established model animal production centers, including three animal bases, covering approximately **55,000 square meters** of animal facilities, offering significant cost advantages[94](index=94&type=chunk) - The company collaborates with CROs and CDMOs to conduct and support asset product R&D and clinical trials[95](index=95&type=chunk) [Proposed A Share Issuance](index=33&type=section&id=Proposed%20A%20Share%20Issuance) The company proposed an A share issuance and listing on the Shanghai Stock Exchange STAR Market in March 2023, having submitted application materials and received an acceptance letter, and is currently awaiting approval from the China Securities Regulatory Commission and the Shanghai Stock Exchange - The company proposed an A share issuance and listing on the Shanghai Stock Exchange STAR Market in March 2023, having submitted application materials and received an acceptance letter[96](index=96&type=chunk) - The A share issuance is subject to approval by the China Securities Regulatory Commission and the Shanghai Stock Exchange[96](index=96&type=chunk) [Quality Management](index=34&type=section&id=Quality%20Management) The company has a quality management department that has established a quality control system referencing ISO9001, GMP, and GLP standards, emphasizing quality control in the design, R&D, manufacturing, testing, and transportation of products and candidate products, with approximately 49 employees in the department as of June 30, 2025 - The company has established a quality control system referencing ISO9001, GMP, and GLP standards, emphasizing quality control in the design, R&D, manufacturing, testing, and transportation of products and candidate products[97](index=97&type=chunk) - As of June 30, 2025, the quality management department consists of approximately **49 employees**, possessing extensive experience in quality management and drug registration[97](index=97&type=chunk) [Suppliers](index=34&type=section&id=Suppliers) The company has established policies to standardize supplier selection processes, conducting due diligence and regular evaluations to ensure supplier and product quality; as of June 30, 2025, the Group had approximately 2,300 suppliers, with over 2,200 from China - The company has formulated a series of policies to provide institutional guarantees for supplier access, selection, approval, monitoring, and evaluation[98](index=98&type=chunk) - As of June 30, 2025, the Group had approximately **2,300 suppliers**, with over **2,200** from China[99](index=99&type=chunk) - The company collaborates with CROs and CDMOs to support asset product R&D and clinical trials, with core product R&D expenses for CROs and CDMOs amounting to approximately **RMB 0.9 million** for the six months ended June 30, 2025[100](index=100&type=chunk) [Intellectual Property](index=35&type=section&id=Intellectual%20Property) Intellectual property is crucial to the company's business; as of June 30, 2025, the company owned 301 registered trademarks, 195 granted patents, and 4 software copyrights, and had filed 496 patent applications in 27 countries or regions - As of June 30, 2025, the company owned **301 registered trademarks**, **195 granted patents**, and **4 software copyrights**[101](index=101&type=chunk) - The company has filed **496 patent applications** in **27 countries or regions**, and has been granted **16 patents** and filed **21 patent applications** related to its core products[101](index=101&type=chunk) [Future and Outlook](index=35&type=section&id=Future%20and%20Outlook) The company will continue to adhere to its strategic goal of "innovation-driven new drug R&D," focusing on innovative animal models and antibody discovery, increasing R&D investment, and gradually building an "antibody evolution tree" encompassing over 1,000 targets and 1,000,000 fully human antibody molecules, while also developing an AI intelligent agent for antibody drug R&D to achieve scaled profitability - In the second half of 2025, the company will continue to adhere to its strategic goal of "innovation-driven new drug R&D," ensuring sufficient R&D investment, controlling expenses, improving operational efficiency, and moving towards the goal of achieving scaled profitability in 2025[102](index=102&type=chunk) - The company will continuously enrich the RenMice® platform, expand the Project Integrum (Thousand-Mouse-Antibody Project) fully human antibody sequence library, and focus on developing innovative animal models for more disease areas[103](index=103&type=chunk) - The company will gradually establish an "antibody evolution tree" encompassing over **1,000 targets** and **1,000,000 fully human antibody molecules**, and build an AI intelligent agent for antibody drug R&D through localized AI deployment[103](index=103&type=chunk) - The company will continue to expand global market development, improve its global R&D, production, and sales layout, and further optimize its global operating structure to enhance operational efficiency[104](index=104&type=chunk) [II. Financial Review](index=37&type=section&id=II.%20Financial%20Review) This section provides a detailed review of the financial performance for the six months ended June 30, 2025, including key financial indicators such as revenue, costs, profitability, liquidity, and capital resources, highlighting significant revenue growth, a turnaround to profit, strong operating cash flow, and continued R&D investment and global expansion Financial Overview for the Six Months Ended June 30, 2025 | Indicator | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Revenue | 620,963 | 410,499 | | Cost of Sales | (159,014) | (105,006) | | Gross Profit | 461,949 | 305,493 | | Other Income and Losses, Net | 8,512 | 9,529 | | Net Change in Fair Value of Biological Assets | 20,796 | 6,483 | | Selling and Marketing Expenses | (58,515) | (42,472) | | General and Administrative Expenses | (116,231) | (102,618) | | Research and Development Expenses | (209,109) | (161,679) | | Profit/(Loss) Before Tax | 59,620 | (47,077) | | Profit/(Loss) for the Period | 47,999 | (50,673) | | Total Comprehensive Income for the Period | 47,961 | (50,901) | [Overview](index=37&type=section&id=Overview) This section provides a discussion of the financial information and notes for the six months ended June 30, 2025, and should be read in conjunction with the relevant financial statements - This section's discussion is based on the financial information and notes contained in this announcement[105](index=105&type=chunk) [Revenue](index=38&type=section&id=Revenue) For the six months ended June 30, 2025, total revenue increased by 51.3% to approximately RMB 621.0 million from approximately RMB 410.5 million in the prior year, primarily driven by increased revenue from model animal sales, preclinical pharmacological efficacy evaluation, and antibody development Revenue Details | Service Line | 2025 (RMB in thousands) | Share (%) | 2024 (RMB in thousands) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Gene Editing | 28,617 | 4.6 | 34,606 | 8.4 | | Preclinical Pharmacological Efficacy Evaluation | 155,031 | 25.0 | 81,552 | 19.9 | | Model Animal Sales | 274,426 | 44.2 | 175,772 | 42.8 | | Antibody Development | 162,863 | 26.2 | 118,200 | 28.8 | | Others | 26 | 0.0 | 369 | 0.1 | | **Total Revenue** | **620,963** | **100.0** | **410,499** | **100.0** | - Revenue increased by **51.3%**, primarily due to increased revenue from model animal sales, preclinical pharmacological efficacy evaluation, and antibody development[107](index=107&type=chunk) [Cost of Sales](index=38&type=section&id=Cost%20of%20Sales) Cost of sales increased by 51.4% to approximately RMB 159.0 million from approximately RMB 105.0 million in the prior year, largely consistent with the increase in revenue during the reporting period - Cost of sales increased by **51.4%** to approximately **RMB 159.0 million** from approximately **RMB 105.0 million**, largely consistent with the increase in revenue during the reporting period[108](index=108&type=chunk) [Gross Profit and Gross Margin](index=38&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Gross profit increased by 51.2% to approximately RMB 461.9 million from approximately RMB 305.5 million in the prior year, mainly due to increased revenue, with the gross margin remaining stable at 74.4% in both reporting periods - Gross profit increased by **51.2%** to approximately **RMB 461.9 million**, primarily due to increased revenue from model animal sales, preclinical pharmacological efficacy evaluation, and antibody development[109](index=109&type=chunk) - Gross margin remained stable at **74.4%** for the six months ended June 30, 2024, and 2025[109](index=109&type=chunk) [Other Income and Losses, Net](index=39&type=section&id=Other%20Income%20and%20Losses%2C%20Net) For the six months ended June 30, 2025, other income and losses, net, totaled approximately RMB 8.5 million, a 10.5% decrease from the prior year, primarily due to reduced interest income and net exchange gains - Other income and losses, net, totaled approximately **RMB 8.5 million**, a **10.5%** decrease from the prior year[110](index=110&type=chunk) - The decrease was primarily due to reduced interest income and net exchange gains[110](index=110&type=chunk) [Net Change in Fair Value of Biological Assets](index=39&type=section&id=Net%20Change%20in%20Fair%20Value%20of%20Biological%20Assets) The net change in fair value of biological assets increased by 220.0% to approximately RMB 20.8 million from approximately RMB 6.5 million in the prior year, primarily due to higher inventory levels of humanized mice - The net change in fair value of biological assets increased by **220.0%** to approximately **RMB 20.8 million**[111](index=111&type=chunk) - The increase was primarily due to a higher inventory level of humanized mice for the six months ended June 30, 2025, compared to the prior year[111](index=111&type=chunk) [Selling and Marketing Expenses](index=39&type=section&id=Selling%20and%20Marketing%20Expenses) Selling and marketing expenses increased by 37.6% to approximately RMB 58.5 million from approximately RMB 42.5 million in the prior year, primarily due to increased salaries, largely consistent with the revenue growth during the reporting period - Selling and marketing expenses increased by **37.6%** to approximately **RMB 58.5 million**[112](index=112&type=chunk) - This increase was primarily due to increased salaries, largely consistent with the revenue growth during the reporting period[112](index=112&type=chunk) [General and Administrative Expenses](index=39&type=section&id=General%20and%20Administrative%20Expenses) General and administrative expenses increased by 13.3% to approximately RMB 116.2 million from approximately RMB 102.6 million in the prior year, primarily due to increased staff costs from bonuses and share-based payments - General and administrative expenses increased by **13.3%** to approximately **RMB 116.2 million**[113](index=113&type=chunk) - The increase was primarily due to increased staff costs from bonuses and share-based payments arising from accelerated vesting during the reporting period[113](index=113&type=chunk) [Research and Development Expenses](index=40&type=section&id=Research%20and%20Development%20Expenses) Research and development expenses increased by 29.3% to approximately RMB 209.1 million from approximately RMB 161.7 million in the prior year, primarily due to increased staff costs (attributable to bonuses and an increase in R&D employee headcount) and higher direct material costs - Research and development expenses increased by **29.3%** to approximately **RMB 209.1 million**[114](index=114&type=chunk) - The increase was primarily due to increased staff costs (attributable to bonuses and an increase in R&D employee headcount) and higher direct material costs[114](index=114&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, bank and cash balances totaled approximately RMB 479.6 million, primarily driven by strong positive cash flow from operating activities, with net cash from operating activities significantly increasing to RMB 203.4 million, achieving positive net cash flow - As of June 30, 2025, bank and cash balances totaled approximately **RMB 479.6 million**, with the increase primarily due to strong positive cash flow from operating activities[115](index=115&type=chunk) Condensed Interim Consolidated Cash Flow Statement Summary | Item | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Tax Paid | (16,041) | (3,076) | | Net Cash from Operating Activities | 203,434 | 29,608 | | Net Cash Used in Investing Activities | (82,898) | (31,964) | | Net Cash Used in Financing Activities | (87,284) | (13,465) | | Net Increase/(Decrease) in Cash and Cash Equivalents | 33,252 | (15,821) | | Effect of Exchange Rate Changes | 3,357 | 2,066 | | Cash and Cash Equivalents at January 1 | 384,458 | 399,607 | | Cash and Cash Equivalents at End of Period | 421,067 | 385,852 | [Finance Costs](index=40&type=section&id=Finance%20Costs) For the six months ended June 30, 2025, finance costs amounted to approximately RMB 35.9 million, a 31.9% decrease from the prior year, primarily due to reduced interest on long-term payables - Finance costs decreased by **31.9%** to approximately **RMB 35.9 million**, primarily due to reduced interest on long-term payables[116](index=116&type=chunk) [Bank and Other Borrowings and Gearing Ratio](index=41&type=section&id=Bank%20and%20Other%20Borrowings%20and%20Gearing%20Ratio) As of June 30, 2025, the Group's outstanding borrowings were approximately RMB 401.8 million, and its gearing ratio was 1.77, a decrease from 1.88 as of December 31, 2024 - As of June 30, 2025, the Group's outstanding borrowings were approximately **RMB 401.8 million**[117](index=117&type=chunk) - The Group's gearing ratio was **1.77** (December 31, 2024: 1.88)[117](index=117&type=chunk) [Net Current Assets](index=41&type=section&id=Net%20Current%20Assets) As of June 30, 2025, the Group's net current assets were approximately RMB 418.6 million, a significant increase from approximately RMB 281.6 million as of December 31, 2024 - As of June 30, 2025, the Group's net current assets were approximately **RMB 418.6 million**, compared to approximately **RMB 281.6 million** as of December 31, 2024[118](index=118&type=chunk) [Foreign Exchange Risk](index=41&type=section&id=Foreign%20Exchange%20Risk) Fluctuations in exchange rates between the US dollar and other currencies used in the Group's operations may impact its financial position and operating results; the company currently has no foreign currency hedging policy, but management monitors foreign exchange risk and considers hedging when necessary - Fluctuations in exchange rates between the US dollar and other currencies used in the Group's operations may impact the Group's financial position and operating results[119](index=119&type=chunk) - The company currently has no foreign currency hedging policy, but management monitors foreign exchange risk and will consider hedging when necessary[119](index=119&type=chunk) [Capital Expenditure](index=41&type=section&id=Capital%20Expenditure) For the six months ended June 30, 2025, total capital expenditure amounted to approximately RMB 30.8 million, primarily allocated to investments in facilities and office buildings, and the purchase of scientific equipment - For the six months ended June 30, 2025, total capital expenditure amounted to approximately **RMB 30.8 million**, primarily including investments in facilities and office buildings, and the purchase of scientific equipment[120](index=120&type=chunk) [Contingent Liabilities](index=41&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities[121](index=121&type=chunk) [Pledge of Assets](index=42&type=section&id=Pledge%20of%20Assets) The Group has pledged its property and buildings, as well as machinery and equipment, for bank and other borrowings; as of June 30, 2025, the total net book values of the related assets were RMB 225.1 million, RMB 18.3 million, and RMB 26.0 million, respectively - The Group has pledged its property and buildings, as well as machinery and equipment, for bank and other borrowings[122](index=122&type=chunk) - As of June 30, 2025, the total net book values of property and buildings, right-of-use assets, and machinery and equipment were **RMB 225.1 million**, **RMB 18.3 million**, and **RMB 26.0 million**, respectively[122](index=122&type=chunk) [Material Investments](index=42&type=section&id=Material%20Investments) As of June 30, 2025, the Group had no material investments - As of June 30, 2025, the Group had no material investments[124](index=124&type=chunk) [Material Acquisitions and Disposals](index=42&type=section&id=Material%20Acquisitions%20and%20Disposals) For the six months ended June 30, 2025, the company did not undertake any other material acquisitions or disposals of subsidiaries, associates, and joint ventures - For the six months ended June 30, 2025, the company did not undertake any other material acquisitions or disposals of subsidiaries, associates, and joint ventures[125](index=125&type=chunk) [Events After Reporting Period](index=42&type=section&id=Events%20After%20Reporting%20Period) Except for the disclosed matters, the company is not aware of any other material post-reporting period events from June 30, 2025, up to the date of this announcement - Except for the disclosed matters, the company is not aware of any other material post-reporting period events from June 30, 2025, up to the date of this announcement[126](index=126&type=chunk) [Employees and Remuneration Policy](index=42&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the company had 1,306 employees, an increase from 1,117 as of December 31, 2024; the company offers competitive remuneration, stock incentive plans, and continuous education and training to enhance employee retention - As of June 30, 2025, the company had **1,306 employees** (December 31, 2024: 1,117 employees)[127](index=127&type=chunk) - The company offers competitive remuneration, stock incentive plans, and continuous education and training to enhance skills and knowledge, contributing to good employee relations and improved employee retention[127](index=127&type=chunk) [Future Plans for Material Investments and Capital Assets](index=43&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) Except as disclosed in this announcement, as of June 30, 2025, the company had not approved any plans for material investments or acquisitions of capital assets - Except as disclosed in this announcement, as of June 30, 2025, the company had not approved any plans for material investments or acquisitions of capital assets[128](index=128&type=chunk) [Corporate Governance and Other Information](index=43&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section details the company's corporate governance practices, compliance with regulatory codes, and other administrative information relevant to its operations [Interim Dividends](index=43&type=section&id=Interim%20Dividends) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公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責任。 Hygeia Healthcare Holdings Co., Limited （ 於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 ） 海 吉 亞 醫 療 控 股 有 限 公 司 （股 份 代 號：6078） 截至二零二五年六月三十日止六個月 中期業績公告 財務摘要 截至二零二五年六月三十日止六個月，本集團的收入為人民幣1,989.7百萬元， 較二零二四年同期減少16.5%。 截至二零二五年六月三十日止六個月，本集團的淨利潤為人民幣245.8百萬元， 較二零二四年同期減少36.2%。 截至二零二五年六月三十日止六個月，本集團的非國際財務報告準則經調整 淨利潤(1)為人民幣262.5百萬元，較二零二四年同期減少34.5%。 截至二零二五年六月三十日止六個月，本集團的經營活動所得現金淨額為人 民幣455.7百萬元，較二零二四年同期增加29.9%。 截至二零二五年六月三十日止六個月，本集團的自由現金流 ...

香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 告 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 會 就 因 本 公 告 全 部 或 任 何 部 分 內 容 而 產 生 或 因 依 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 FriendTimes Inc. （於開曼群島註冊成立的有限公司） （股份代號：6820） 友誼時光股份有限公司 截 至2025年6月30日 止 六 個 月 的 中 期 業 績 公 告 本 集 團 總 部 設 於 中 國 蘇 州，在 中 國 上 海、成 都 和 香 港 地 區，及 韓 國 設 有 分 支 機 構，並 於2019年10月8日 在 聯 交 所 主 板 上 市。自2010年 成 立 以 來，先 後 成 功 推 出《熹 妃 傳》、《熹 妃Q傳》、《浮 生 為 卿 歌》、《凌 雲 諾》、《浮 生 憶 玲 瓏》、 《杜 拉 拉 升 職 記》、《墨 劍 江 湖》、《暴 吵 萌 廚》等 核 心 產 品，深 受 用 戶 ...

(於開曼群島註冊成立之有限公司) 股份代號: 1 2025 長江和記實業有限公司 2025年中期報告 公司資料 董事會 執行董事 李澤鉅 BSc, MSc, LLD (Hon) Grande Ufficiale dell'Ordine della Stella d'Italia 主 席 霍建寧 BA, DFM, FCA (ANZ) 副主席 陸法蘭 MA, LLL 集團聯席董事總經理兼集團財務董事 黎啟明 BSc, MBA 集團聯席董事總經理 葉德銓 BA, MSc 副董事總經理 甘慶林 BSc, MBA 副董事總經理 施熙德 BSE, MA, MA, EdM, Solicitor, FCG, HKFCG 甄達安 MA, MBA, CA, CPA 非執行董事 周近智 LLM 李業廣 GBM, GBS, OBE, JP 胡慕芳 BSc （別 名 周 胡 慕 芳） 獨立非執行董事 周靜宜 BA, MBA 蓆紀倫 BCom, CA(ANZ), FCPA 斐歷嘉道理 BSc 劉柔芬 GBS, SBS, OBE, JP （別 名 梁 劉 柔 芬） 戴保羅 BSc 詹婧翎 MBA, CPA, CGA, FCA, FCCA, ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公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責任。 Li Auto Inc. 理想汽車 （於開曼群島註冊成立以不同投票權控制的有限責任公司） （股份代號：2015） 內幕消息 截至2025年6月30日止季度的 未經審計財務業績 本文附表一為本公司於2025年8月28日（美國東部時間）刊發的有關第二季度業績 的新聞稿全文，其中部分內容可能構成本公司的重大內幕消息。 本公告包含根據1995年《美國私人證券訴訟改革法案》的「安全港」條文可能構成 「前瞻性」聲明的陳述。該等前瞻性陳述可以通過諸如「將」、「期望」、「預期」、 「旨在」、「未來」、「擬」、「計劃」、「相信」、「預計」、「目標」、「可能」及「挑戰」 等術語及類似陳述來識別。理想汽車亦可能在其向美國證交會及香港聯合交易 所有限公司（「香港聯交所」）提交的定期報告中、在其提交給股東的年度報告、 新聞稿和其他書面材料以及其高級職員、董事或僱員向第三方所作的口頭陳述中 作出書面或口頭前瞻性陳述。非歷史事實性陳 ...

Part I [Announcement Information](index=1&type=section&id=I.%20Announcement%20Information) This section provides general information about the interim results announcement and disclaimers [Company Basic Information](index=1&type=section&id=1.1%20Company%20Basic%20Information) SINO ICT HOLDINGS LIMITED announced its unaudited interim results for the six months ended June 30, 2025, which were reviewed by the Audit Committee - Company name: **SINO ICT HOLDINGS LIMITED**, stock code: **00365**[2](index=2&type=chunk) - The announcement covers unaudited consolidated results for the six months ended **June 30, 2025**[2](index=2&type=chunk) - The results were reviewed by the Company's Audit Committee on **August 28, 2025**[2](index=2&type=chunk) [Summary of Interim Results Announcement](index=1&type=section&id=1.2%20Summary%20of%20Interim%20Results%20Announcement) This section presents the disclaimer from HKEX and the Stock Exchange, stating no responsibility for the announcement's accuracy or completeness - Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited are not responsible for the contents of this announcement, nor do they make any representation as to its accuracy or completeness[1](index=1&type=chunk) Part II [Condensed Consolidated Financial Statements](index=1&type=section&id=II.%20Condensed%20Consolidated%20Financial%20Statements) This section provides an overview of the company's condensed consolidated financial performance and position [Condensed Consolidated Statement of Comprehensive Income](index=1&type=section&id=2.1%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, revenue from continuing operations grew 24.4% to HKD 177,334 thousand, with operating profit turning positive to HKD 8,920 thousand, and profit attributable to owners from continuing operations at HKD 6,309 thousand Key Data from Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 177,334 | 142,600 | 24.4% | | Operating profit/(loss) | 8,920 | (10,766) | N/A (turned profitable) | | Loss for the period from continuing operations | (3,066) | (26,518) | -88.4% | | Profit/(loss) for the period from continuing operations attributable to owners of the Company | 6,309 | (10,777) | N/A (turned profitable) | | Basic and diluted earnings per share (continuing operations) (HK cents) | 0.43 | (0.74) | N/A (turned profitable) | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=2.2%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets slightly increased to HKD 931,931 thousand, net current assets significantly rose to HKD 194,864 thousand, and equity attributable to owners increased to HKD 232,786 thousand, while non-current liabilities grew due to increased borrowings Key Data from Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (HKD thousands) | | :--- | :--- | :--- | :--- | | Total assets | 931,931 | 923,846 | 8,085 | | Equity attributable to owners of the Company | 232,786 | 226,126 | 6,660 | | Non-current liabilities | 494,697 | 350,277 | 144,420 | | Current liabilities | 255,086 | 388,648 | (133,562) | | Net current assets | 194,864 | 33,801 | 161,063 | Part III [Notes to the Financial Statements](index=6&type=section&id=III.%20Notes%20to%20the%20Financial%20Statements) This section provides detailed explanations and disclosures regarding the condensed consolidated financial statements [General Information](index=6&type=section&id=3.1%20General%20Information) SINO ICT HOLDINGS LIMITED, a Bermuda-registered company listed on the HKEX, primarily engages in SMT equipment manufacturing and energy businesses in China, having terminated its radar business this period - The Company is incorporated in Bermuda and its shares are listed on the Main Board of the Stock Exchange of Hong Kong[8](index=8&type=chunk) - Principal activities include surface mount technology (SMT) equipment manufacturing and electricity sales, along with providing electricity spot market trading and ancillary services (energy business)[8](index=8&type=chunk) - For the six months ended June 30, 2025, the advanced domestic radar hardware manufacturing, intelligent software development, application, and system integration business (radar business) was discontinued[8](index=8&type=chunk) [Basis of Preparation](index=6&type=section&id=3.2%20Basis%20of%20Preparation) These condensed consolidated interim financial statements are prepared in accordance with HKAS 34 and the Listing Rules, and should be read in conjunction with the annual consolidated financial statements - The statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants, and the applicable disclosure requirements of the Hong Kong Companies Ordinance and the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[11](index=11&type=chunk) - These statements do not include all the information required for annual consolidated financial statements and should be read in conjunction with the consolidated financial statements for the year ended December 31, 2024[11](index=11&type=chunk) [Significant Accounting Policies](index=7&type=section&id=3.3%20Significant%20Accounting%20Policies) These interim financial statements are primarily prepared on a historical cost basis, with some assets measured at fair value, and the adoption of several revised HKFRSs this period had no material impact on the consolidated results or financial position - The statements are prepared on a historical cost basis, except for investment properties and financial assets measured at fair value[12](index=12&type=chunk) - Several revised Hong Kong Financial Reporting Standards effective from January 1, 2025, were adopted, including lease liabilities in a sale and leaseback, classification of liabilities, non-current liabilities with covenants, and lack of exchangeability[12](index=12&type=chunk) - The adoption of these revised standards had no material impact on the consolidated results and financial position for the current and prior periods[12](index=12&type=chunk) [Critical Accounting Estimates and Judgments](index=7&type=section&id=3.4%20Critical%20Accounting%20Estimates%20and%20Judgments) The preparation of these financial statements involves management's critical judgments, estimates, and assumptions regarding accounting policies and the carrying amounts of assets and liabilities, consistent with the 2024 annual report - Management made critical judgments, estimates, and assumptions in preparing the statements, consistent with those used in the consolidated financial statements for the year ended December 31, 2024[13](index=13&type=chunk) [Revenue](index=8&type=section&id=3.5%20Revenue) Total revenue for the period was HKD 177,334 thousand, primarily from the production and sale of industrial products (HKD 152,408 thousand) and electricity sales (HKD 24,926 thousand), with all revenue recognized at a point in time Revenue Composition (For the six months ended June 30) | Revenue Source | 2025 (HKD thousands) | 2024 (HKD thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Production and sale of industrial products | 152,408 | 134,758 | 13.1% | | Electricity sales | 24,926 | 7,842 | 217.8% | | **Total Revenue** | **177,334** | **142,600** | **24.4%** | - All revenue is recognized at a point in time[15](index=15&type=chunk) [Segment Information](index=9&type=section&id=3.6%20Segment%20Information) As of June 30, 2025, the radar business has been discontinued; the industrial product production and sales segment is the primary source of revenue and profit, generating HKD 150,706 thousand in revenue and HKD 74,610 thousand in gross profit, while the energy business saw significant revenue growth to HKD 24,926 thousand but recorded a gross loss of HKD 8,904 thousand and a pre-tax loss of HKD 19,133 thousand - The radar business has been discontinued, and segment information does not include discontinued operations[16](index=16&type=chunk) Segment Results from Continuing Operations (For the six months ended June 30) | Indicator | Industrial Product Production and Sales (HKD thousands) | Energy Business (HKD thousands) | Unallocated Items (HKD thousands) | Total (HKD thousands) | | :--- | :--- | :--- | :--- | :--- | | **2025** | | | | | | Revenue from external customers | 150,706 | 24,926 | 1,702 | 177,334 | | Segment gross profit/(loss) | 74,610 | (8,904) | 1,702 | 67,408 | | Profit/(loss) before income tax | 23,384 | (19,133) | (6,232) | (1,981) | | **2024** | | | | | | Revenue from external customers | 131,709 | 7,842 | 3,049 | 142,600 | | Segment gross profit | 59,835 | 2,044 | 3,049 | 64,928 | | Profit/(loss) before income tax | 16,890 | (31,413) | (13,448) | (27,971) | [Other Income](index=10&type=section&id=3.7%20Other%20Income) Other income for the period was HKD 1,384 thousand, primarily from government grants, representing a significant year-on-year decrease of 72.1% Other Income Composition (For the six months ended June 30) | Income Source | 2025 (HKD thousands) | 2024 (HKD thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Scrap sales income | 31 | 294 | -89.5% | | Government grants | 1,353 | 4,656 | -70.9% | | **Total** | **1,384** | **4,950** | **-72.1%** | [Finance Income and Expenses](index=11&type=section&id=3.8%20Finance%20Income%20and%20Expenses) Net finance expenses for the period were HKD 10,767 thousand, a 13.8% year-on-year decrease, mainly due to reduced interest expenses on bank and other borrowings Finance Income and Expenses (For the six months ended June 30) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Interest income from bank deposits | 561 | 913 | -38.6% | | Interest expenses on bank and other borrowings | (11,328) | (13,410) | -15.5% | | **Net finance expenses** | **(10,767)** | **(12,497)** | **-13.8%** | [Income Tax Expense](index=11&type=section&id=3.9%20Income%20Tax%20Expense) Income tax expense from continuing operations for the period was HKD 1,085 thousand, compared to an income tax credit of HKD 1,453 thousand in the prior period, primarily related to China corporate income tax Income Tax Expense/(Credit) from Continuing Operations (For the six months ended June 30) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | China corporate income tax expense/(credit) | 1,085 | (1,453) | [Discontinued Operations](index=12&type=section&id=3.10%20Discontinued%20Operations) Discontinued operations (radar business) recorded a loss of HKD 187 thousand for the period, primarily administrative expenses, with a loss attributable to owners of HKD 129 thousand Loss from Discontinued Operations (For the six months ended June 30) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Revenue | — | — | | Administrative expenses | (187) | — | | Loss before income tax from discontinued operations | (187) | — | | **Loss for the period from discontinued operations** | **(187)** | **—** | | Loss attributable to owners of the Company | (129) | — | [Earnings/(Loss) Per Share](index=13&type=section&id=3.11%20Earnings%2F%28Loss%29%20Per%20Share) Basic and diluted earnings per share from continuing operations for the period were 0.43 HK cents, with a loss per share from discontinued operations of 0.01 HK cents, totaling 0.42 HK cents earnings per share, reversing previous losses Earnings/(Loss) Per Share (For the six months ended June 30) | Item | 2025 (HK cents) | 2024 (HK cents) | | :--- | :--- | :--- | | Continuing operations | 0.43 | (0.74) | | Discontinued operations | (0.01) | — | | **Basic and diluted earnings/(loss)** | **0.42** | **(0.74)** | - The weighted average number of ordinary shares for basic and diluted earnings/(loss) per share was **1,455,000 thousand shares**, consistent with the prior period[21](index=21&type=chunk) [Dividends](index=13&type=section&id=3.12%20Dividends) For the six months ended June 30, 2025, the Company neither declared nor proposed any dividends - For the six months ended June 30, 2025, the Company neither declared nor proposed any dividends (2024: nil)[22](index=22&type=chunk) [Trade and Other Receivables](index=14&type=section&id=3.13%20Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and bills receivables amounted to HKD 105,564 thousand, a significant increase from December 31, 2024, with notable increases in receivables aged 91-180 days and over 180 days Ageing Analysis of Trade and Bills Receivables | Ageing | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (HKD thousands) | | :--- | :--- | :--- | :--- | | 0 to 90 days | 48,379 | 58,476 | (10,097) | | 91 to 180 days | 28,658 | 11,779 | 16,879 | | Over 180 days | 28,527 | 1,881 | 26,646 | | **Total** | **105,564** | **72,136** | **33,428** | [Trade and Other Payables](index=14&type=section&id=3.14%20Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and bills payables were HKD 45,693 thousand, a slight decrease from December 31, 2024 Ageing Analysis of Trade and Bills Payables | Ageing | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (HKD thousands) | | :--- | :--- | :--- | :--- | | 0 to 90 days | 40,141 | 43,702 | (3,561) | | 91 to 120 days | 447 | 253 | 194 | | Over 120 days | 5,105 | 5,679 | (574) | | **Total** | **45,693** | **49,634** | **(3,941)** | [Assets Classified as Held for Sale](index=14&type=section&id=3.15%20Assets%20Classified%20as%20Held%20for%20Sale) As of June 30, 2025, certain equipment, intangible assets, and inventories of the radar business, totaling HKD 6,434 thousand, were classified as assets held for sale - Equipment, intangible assets, and inventories of the radar business are classified as "assets classified as held for sale"[25](index=25&type=chunk) Composition of Assets Classified as Held for Sale (June 30, 2025) | Asset Type | Amount (HKD thousands) | | :--- | :--- | | Equipment | 2,127 | | Intangible assets | 1,062 | | Inventories | 3,245 | | **Total** | **6,434** | Part IV [Performance Review and Business Outlook](index=15&type=section&id=IV.%20Performance%20Review%20and%20Business%20Outlook) This section reviews the company's financial performance and provides an outlook on industry trends and future business strategies [Overall Performance Review](index=15&type=section&id=4.1%20Overall%20Performance%20Review) The Company's revenue increased by 24.4% year-on-year to HKD 177,334 thousand, with profit attributable to owners of approximately HKD 6,180 thousand, reversing losses, primarily due to stable energy business operations and reduced administrative expenses - Revenue was approximately **HKD 177,334,000**, a year-on-year increase of **24.4%**[26](index=26&type=chunk) - Profit attributable to owners of the Company was approximately **HKD 6,180,000**, and total comprehensive income attributable to owners of the Company was approximately **HKD 6,660,000**, both increasing from the prior period and reversing losses[26](index=26&type=chunk) - Performance improvement is mainly attributed to the energy business gradually entering stable operation, reduced one-off expenses, and lower daily management costs, leading to a decrease in administrative expenses[26](index=26&type=chunk) [Industry and Macroeconomic Outlook](index=15&type=section&id=4.2%20Industry%20and%20Macroeconomic%20Outlook) China's advanced manufacturing and new energy storage industries have broad prospects driven by "Made in China 2025" and "14th Five-Year Plan" policies, providing business opportunities despite external challenges and stable national economic operation - "Made in China 2025" policy continues to deepen, prioritizing advanced manufacturing; the "14th Five-Year Plan" for new energy storage development is vigorously promoted, accelerating energy structure transformation[27](index=27&type=chunk) - The PMI generally shows a marginal rebound, driving rapid development of the new energy storage industry, with significant increases in project numbers and installed capacity[27](index=27&type=chunk) - Despite challenges such as escalating US chip export controls against China and local government debt pressure, the national economy remains stable overall[27](index=27&type=chunk) [SMT and Semiconductor Equipment Manufacturing Business](index=16&type=section&id=4.3%20SMT%20and%20Semiconductor%20Equipment%20Manufacturing%20Business) The SMT and semiconductor equipment manufacturing business revenue increased by 14.4% year-on-year to HKD 150,706 thousand, with significant growth in segment gross profit and pre-tax profit, making it the company's primary revenue and profit source, benefiting from market demand for Mini LED, new energy vehicles, and domestic semiconductor equipment substitution - SMT and semiconductor equipment manufacturing business revenue was approximately **HKD 150,706,000**, a year-on-year increase of **14.4%**; segment gross profit was approximately **HKD 74,610,000**, a year-on-year increase of **24.7%**; segment profit before income tax was approximately **HKD 23,384,000**, a year-on-year increase of **38.4%**[28](index=28&type=chunk) - Wholly-owned subsidiary Nitto Intelligent Equipment Technology (Shenzhen) Co., Ltd. actively promotes its market presence, including launching the e-commerce platform "Nitto Technology Mall" and participating in domestic and international industry exhibitions to deepen its overseas market strategic layout[28](index=28&type=chunk) - Mini LED technology and demand for ultra-large display panels are growing rapidly, with China's Mini LED shipments projected to increase by **3.2%**[29](index=29&type=chunk) - Domestic chip production and sales are increasing, while semiconductor equipment imports are decreasing, demonstrating the effectiveness of domestic substitution, and the Group's core business will continue to benefit from the electronic manufacturing upgrade wave[30](index=30&type=chunk) [Energy Business](index=17&type=section&id=4.4%20Energy%20Business) The energy business segment generated approximately HKD 24,926 thousand in revenue but recorded a gross loss and pre-tax loss; the Herong New Energy Storage Power Station has commenced commercial operation, participating in spot market trading, passing secondary and primary frequency regulation tests, and launching new energy leasing services, now contributing stable positive cash flow despite temporary losses from initial costs - The energy business segment generated revenue of approximately **HKD 24,926,000**, with a segment gross loss of approximately **HKD 8,904,000** and a segment loss before income tax of approximately **HKD 19,133,000**[31](index=31&type=chunk) - The Herong New Energy Storage Power Station, invested and constructed by joint venture Zhongxin Dianlian (Zhuhai Hengqin) Energy Technology Co., Ltd., was completed in 2023 and commenced commercial operation and spot market trading in October of the same year[31](index=31&type=chunk) - The Herong Power Station passed secondary frequency regulation (AGC) and primary frequency regulation (PFR) technical tests and officially entered market operation, with its K-value reaching the highest level in the industry, and indicators such as charge-discharge conversion rate and response to frequency regulation command output efficiency ranking among the top in the industry[32](index=32&type=chunk) - The Herong Power Station launched new energy leasing services in April this year, signing contracts with three photovoltaic companies, enhancing energy storage asset utilization, and beginning to contribute stable positive cash flow[32](index=32&type=chunk) - Despite its revenue-generating potential, the segment shows temporary losses due to initial depreciation, amortization, financing costs, and operation and maintenance expenses[32](index=32&type=chunk) Part V [Financial Performance Analysis](index=19&type=section&id=V.%20Financial%20Performance%20Analysis) This section provides a detailed analysis of the company's revenue, costs, and profitability metrics [Revenue Analysis](index=19&type=section&id=5.1%20Revenue%20Analysis) Total revenue for the period was HKD 177,334 thousand, with SMT equipment manufacturing and related businesses accounting for 85%, and electricity sales revenue significantly increasing by 217.8% year-on-year Revenue by Business Segment (For the six months ended June 30) | Business Segment | 2025 (HKD thousands) | 2024 (HKD thousands) | YoY Change (%) | Proportion (2025) | | :--- | :--- | :--- | :--- | :--- | | SMT equipment manufacturing and related businesses | 150,706 | 131,709 | 14.4% | 85.0% | | Electricity sales | 24,926 | 7,842 | 217.8% | 14.1% | | Integrated services | 1,702 | 3,049 | -44.2% | 1.0% | | **Total** | **177,334** | **142,600** | **24.4%** | **100.0%** | [Other Income Analysis](index=19&type=section&id=5.2%20Other%20Income%20Analysis) Other income for the period was approximately HKD 1,384 thousand, primarily government grants, representing a significant decrease from the prior period - Other income for the period was approximately **HKD 1,384,000**, mainly from government grants[34](index=34&type=chunk) [Distribution Costs Analysis](index=19&type=section&id=5.3%20Distribution%20Costs%20Analysis) Distribution costs for the period were approximately HKD 26,563 thousand, an increase of approximately HKD 5,950 thousand year-on-year, primarily due to increased sales revenue - Distribution costs were approximately **HKD 26,563,000**, an increase of approximately **HKD 5,950,000** compared to the same period last year, mainly due to increased sales revenue[35](index=35&type=chunk) [Administrative Expenses Analysis](index=19&type=section&id=5.4%20Administrative%20Expenses%20Analysis) Administrative expenses for the period were approximately HKD 34,570 thousand, a decrease of approximately HKD 24,954 thousand year-on-year, mainly due to the reclassification of depreciation in the electricity sales segment to cost of sales - Administrative expenses were approximately **HKD 34,570,000**, a decrease of approximately **HKD 24,954,000** compared to the same period last year, mainly due to the reclassification of depreciation in the electricity sales segment to cost of sales[36](index=36&type=chunk) [Net Finance Costs Analysis](index=20&type=section&id=5.5%20Net%20Finance%20Costs%20Analysis) Net finance costs for the period were approximately HKD 10,767 thousand, a decrease of approximately HKD 1,730 thousand year-on-year, primarily due to reduced interest expenses - Net finance costs were approximately **HKD 10,767,000**, a decrease of approximately **HKD 1,730,000** compared to the same period last year, mainly due to reduced interest expenses[37](index=37&type=chunk) [Profit for the Period](index=20&type=section&id=5.6%20Profit%20for%20the%20Period) Profit attributable to owners of the Company for the period was approximately HKD 6,180 thousand, reversing previous losses - Profit attributable to owners of the Company for the period was approximately **HKD 6,180,000**, reversing previous losses[38](index=38&type=chunk) [Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)](index=20&type=section&id=5.7%20Earnings%20Before%20Interest,%20Tax,%20Depreciation%20and%20Amortization%20%28EBITDA%29) EBITDA for the period was HKD 21,750 thousand, with an EBITDA margin of approximately 12.26% Earnings Before Interest, Tax, Depreciation and Amortization (For the six months ended June 30) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Profit/(loss) attributable to owners of the Company for the period | 6,180 | (10,777) | | Net finance costs | 10,767 | 12,497 | | Income tax expense/(credit) | 1,085 | (1,453) | | Depreciation and amortization | 3,718 | 23,649 | | **EBITDA** | **21,750** | **23,916** | - The EBITDA margin for the period was approximately **12.26%**[39](index=39&type=chunk) Part VI [Liquidity and Financial Resources](index=20&type=section&id=VI.%20Liquidity%20and%20Financial%20Resources) This section examines the company's liquidity position, asset pledges, and changes in equity and liabilities [Liquidity Position](index=20&type=section&id=6.1%20Liquidity%20Position) The Group maintains ample working capital, with net current assets of approximately HKD 194,864 thousand and a current ratio of approximately 176.39%; cash and bank balances decreased, while average days for trade receivables, trade payables, and inventories all significantly increased - Net current assets were approximately **HKD 194,864,000**, with a current ratio of approximately **176.39%**, sufficient to meet daily operational needs[41](index=41&type=chunk) - Cash and bank balances were approximately **HKD 171,945,000**, a decrease of **HKD 33,356,000** from approximately **HKD 205,301,000** at the beginning of the period[42](index=42&type=chunk) Key Turnover Days Data | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Average trade receivables turnover days | 180 days | 95 days | Increased by 85 days | | Average trade payables turnover days | 156 days | 72 days | Increased by 84 days | | Average inventory turnover days | 80 days | 44 days | Increased by 36 days | [Pledge of Assets](index=21&type=section&id=6.2%20Pledge%20of%20Assets) As of June 30, 2025, the Group's bank facilities are secured by first legal charges over certain land and buildings with a total net book value of approximately HKD 70,873 thousand - Bank facilities are secured by first legal charges over certain land and buildings with a total net book value of approximately **HKD 70,873,000**[43](index=43&type=chunk) [Equity and Liabilities](index=21&type=section&id=6.3%20Equity%20and%20Liabilities) As of June 30, 2025, net assets attributable to owners of the Company were approximately HKD 232,786 thousand, with an increase in equity of approximately HKD 6,660 thousand during the period - Net assets attributable to owners of the Company were approximately **HKD 232,786,000** (December 31, 2024: HKD 226,126,000), with an increase in equity of approximately **HKD 6,660,000** during the period[44](index=44&type=chunk) Part VII [Human Resources](index=21&type=section&id=VII.%20Human%20Resources) This section outlines the company's human resources profile, including employee numbers, training, and compensation policies [Human Resources Overview](index=21&type=section&id=7.1%20Human%20Resources%20Overview) As of June 30, 2025, the Group employed approximately 285 full-time staff and workers in mainland China and 24 staff in Hong Kong, maintaining and enhancing employee capabilities through regular training, staff benefits, and performance-linked bonuses - As of June 30, 2025, the Group employed approximately **285 full-time employees and workers** in mainland China and approximately **24 staff** in Hong Kong[45](index=45&type=chunk) - The Company maintains and enhances employee work capabilities through regular training and provides remuneration in line with industry practice[45](index=45&type=chunk) - Employee benefits and bonuses are provided in mainland China, while a provident fund scheme and performance-linked bonuses are offered in Hong Kong[45](index=45&type=chunk) Part VIII [Risk Management](index=22&type=section&id=VIII.%20Risk%20Management) This section details the company's approach to managing operational and financial risks, including credit, liquidity, and foreign exchange exposures [Operational Risks](index=22&type=section&id=8.1%20Operational%20Risks) The Group faces operational risks related to its various business segments, which are monitored, assessed, and managed by segment management through risk management policies and procedures, including whistleblowing mechanisms to prevent fraud and bribery, with directors deeming these risks effectively mitigated - Management of each business segment is responsible for monitoring business operations, assessing operational risks, and implementing risk management policies and procedures[46](index=46&type=chunk) - A whistleblowing procedure is established, including communication with other departments and business segments/units, to report any non-compliance and prevent fraud and bribery[46](index=46&type=chunk) - The Directors believe that the Group's operational risks have been effectively mitigated[46](index=46&type=chunk) [Financial Risks](index=22&type=section&id=8.2%20Financial%20Risks) The Group is exposed to credit risk, liquidity risk, and foreign exchange risk, which are managed through close monitoring, credit approval, collection procedures, and maintaining adequate cash levels - The Group is exposed to credit risk, liquidity risk, and foreign exchange risk[47](index=47&type=chunk) [Credit Risk](index=22&type=section&id=8.2.1%20Credit%20Risk) Directors closely monitor credit risk levels, with management responsible for credit approval and collection procedures, and ensuring adequate impairment provisions for irrecoverable amounts to mitigate credit risk - Directors closely monitor the overall level of credit risk, and management is responsible for credit approval and monitoring collection procedures[48](index=48&type=chunk) - The recoverability of individual trade debts is reviewed to ensure adequate impairment provisions are made for irrecoverable amounts[48](index=48&type=chunk) - The Directors believe that the Group's credit risk has been significantly reduced[48](index=48&type=chunk) [Liquidity Risk](index=22&type=section&id=8.2.2%20Liquidity%20Risk) Directors have established an appropriate liquidity risk management framework, effectively managing liquidity risk by monitoring cash and cash equivalents, ensuring sufficient working capital, and mitigating cash flow fluctuations - Directors have established an appropriate liquidity risk management framework to meet short-term, medium-term, and long-term financing and liquidity management requirements[49](index=49&type=chunk) - The Group monitors its levels of cash and cash equivalents, maintains sufficient working capital, and mitigates cash flow fluctuations[49](index=49&type=chunk) - The Directors believe that the Group's liquidity risk has been effectively managed[49](index=49&type=chunk) [Foreign Exchange Risk](index=23&type=section&id=8.2.3%20Foreign%20Exchange%20Risk) The Group faces foreign exchange risk due to business transactions denominated in RMB, HKD, USD, and other currencies; no financial instruments were used for hedging this period, but the Group will continue to monitor and take appropriate hedging measures as needed - The Group is exposed to foreign exchange risk due to business transactions, assets, and liabilities denominated in RMB, HKD, USD, and other currencies[50](index=50&type=chunk) - No financial instruments were used for hedging purposes during the period, but the Group will continue to closely monitor and take appropriate hedging measures as needed[50](index=50&type=chunk) Part IX [Other Information](index=23&type=section&id=IX.%20Other%20Information) This section covers additional disclosures including securities transactions, dividend policy, corporate governance, and forward-looking statements [Repurchase, Sale or Redemption of the Company's Listed Securities](index=23&type=section&id=9.1%20Repurchase,%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries repurchased, sold, or redeemed any of the Company's listed securities - Neither the Company nor any of its subsidiaries repurchased, sold, or redeemed any of the Company's listed securities during the six months ended June 30, 2025[51](index=51&type=chunk) [Dividend Policy](index=23&type=section&id=9.2%20Dividend%20Policy) The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (2024: nil)[52](index=52&type=chunk) [Standard Code for Securities Transactions by Directors](index=23&type=section&id=9.3%20Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted the Standard Code for Securities Transactions by Directors as set out in Appendix C3 of the Listing Rules and confirms that all Directors complied with the code during the period - The Company has adopted the Standard Code for Securities Transactions by Directors as set out in Appendix C3 of the Listing Rules[53](index=53&type=chunk) - Following enquiry, all Directors confirmed that they have complied with the required standards set out in the Standard Code for the six months ended June 30, 2025[53](index=53&type=chunk) [Corporate Governance](index=24&type=section&id=9.4%20Corporate%20Governance) The Company is committed to good corporate governance, adopting and regularly reviewing the Corporate Governance Code in Appendix C1 of the Listing Rules to ensure compliance, and acted in accordance with the code during the period - The Company understands the importance of good corporate governance practices and procedures and is committed to ensuring its business complies with relevant rules and regulations[54](index=54&type=chunk) - The Corporate Governance Code as set out in Appendix C1 of the Listing Rules is adopted and regularly reviewed to ensure compliance[54](index=54&type=chunk) - For the six months ended June 30, 2025, the Company acted in accordance with the Code[54](index=54&type=chunk) [Audit Committee](index=24&type=section&id=9.5%20Audit%20Committee) The Audit Committee has reviewed the Group's interim financial results for the six months ended June 30, 2025, and found them to be in compliance with applicable accounting standards, laws, and HKEX requirements - The Audit Committee has reviewed the Group's interim financial results for the six months ended June 30, 2025[55](index=55&type=chunk) - The Committee believes that these statements comply with applicable accounting standards, laws, and the requirements of the Stock Exchange, and that adequate disclosures have been made[55](index=55&type=chunk) [Publication of Interim Report](index=24&type=section&id=9.6%20Publication%20of%20Interim%20Report) The Company's interim report will be published on the HKEX website and the Company's website, and dispatched to shareholders - The Company's interim report will be published on the HKEX website (www.hkex.com.hk) and the Company's website (www.sino-ict.com), and dispatched to shareholders[56](index=56&type=chunk) [Investment Risk Warning and Forward-Looking Statements](index=25&type=section&id=9.7%20Investment%20Risk%20Warning%20and%20Forward-Looking%20Statements) The Board advises investors that unaudited interim financial results and operating data are based on internal information, and inappropriate reliance may pose investment risks; the announcement contains forward-looking statements that are not guarantees of future performance, actual results may vary due to various factors, and the Company has no obligation to update them - Unaudited interim financial results and operating data are based on the Group's internal information, and investors should be aware that inappropriate reliance or use of this information may pose investment risks[57](index=57&type=chunk) - The announcement contains forward-looking statements, which are not guarantees of future performance, and actual results may differ materially due to factors such as industry, economy, customer demand, and government policies[57](index=57&type=chunk) - The Group has no obligation to update or revise any forward-looking statements to reflect events or circumstances after the reporting date[57](index=57&type=chunk) [Board of Directors](index=25&type=section&id=9.8%20Board%20of%20Directors) As of the announcement date, the Board of Directors includes Executive Directors Mr. Yuan Yipei and Mr. Xia Yuan, Non-executive Directors Mr. Meng Deqing and Ms. Bai Yu, and Independent Non-executive Directors Mr. Cui Yuzhi, Mr. Bao Yi, and Mr. Fan Ping - As of the announcement date, the Board of Directors includes Executive Directors Mr. Yuan Yipei and Mr. Xia Yuan, Non-executive Directors Mr. Meng Deqing and Ms. Bai Yu, and Independent Non-executive Directors Mr. Cui Yuzhi, Mr. Bao Yi, and Mr. Fan Ping[58](index=58&type=chunk)