Contents 目錄 | Corporate Information | 公司資料 | 2 | | --- | --- | --- | | Corporate Profile | 公司簡介 | 5 | | Chairman's Statement | 主席報告 | 7 | | Financial Highlights | 財務摘要 | 12 | | Management Discussion and Analysis | 管理層討論與分析 | 14 | | Disclosure of Interests | 權益披露 | 78 | | Corporate Governance and Other Information | 企業管治及其他資料 | 94 | | Condensed Consolidated Statement of Profit or Loss and | 簡明綜合損益及其他全面 | | | Other Comprehensive Income | 收益表 | 96 | | Condensed Consolidated Statement of Financial Position | 簡明 ...

Seazen Group Limited 中期報告 INTERIM REPO R T 2025 分 享 喜 悅 不 負 情 懷 Seazen Group Limited 新城發展控股有限公司 2025 中期報告 INTERIM REPORT 目錄 CONTENTS | 公司資料 | 2 | | --- | --- | | Corporate Information | | | 主要物業明細 | 5 | | Breakdown of Major Properties | | | 管理層討論及分析 | 26 | | Management Discussion and Analysis | | | 其他資料 | 41 | | Other Information | | | 簡明合併中期財務報表 | | Condensed Consolidated Interim Financial Statements • 簡明合併財務狀況表 50 Condensed Consolidated Statement of Financial Position • 簡明合併損益表 52 Condensed Consolidated S ...

[Interim Results Announcement](index=1&type=section&id=Interim%20Results%20Announcement) This section provides an overview of Jiyi Holdings Limited's unaudited condensed consolidated interim results for the six months ended June 30, 2025 [Announcement Overview](index=1&type=section&id=Announcement%20Overview) Jiyi Holdings Limited announces its unaudited condensed consolidated interim results for the six months ended June 30, 2025, with comparative data for the same period in 2024 - Jiyi Holdings Limited announced its unaudited condensed consolidated interim results for the six months ended June 30, 2025[2](index=2&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This section presents the Group's financial performance, highlighting revenue, gross profit, and loss for the period, with comparative figures [Profit or Loss Summary](index=2&type=section&id=Profit%20or%20Loss%20Summary) For the six months ended June 30, 2025, revenue decreased to RMB 193,162 thousand from RMB 206,839 thousand, while loss for the period significantly narrowed to RMB 8,750 thousand from RMB 92,528 thousand, mainly due to reduced impairment losses under the expected credit loss model Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) (Restated) | | :--- | :--- | :--- | | Revenue | 193,162 | 206,839 | | Cost of sales | (185,846) | (203,212) | | Gross profit | 7,316 | 3,627 | | Other income | 1 | 272 | | Other losses, net | (40) | (3) | | Distribution and selling expenses | (466) | (740) | | Administrative expenses | (3,380) | (9,203) | | Provision for litigation and legal fees | (6,757) | (1,800) | | Impairment losses under expected credit loss model, net | – | (79,366) | | Finance costs | (5,424) | (5,315) | | Loss before tax | (8,750) | (92,528) | | Income tax expense | – | – | | Loss for the period | (8,750) | (92,528) | | Total comprehensive loss for the period | (9,094) | (89,719) | | Loss for the period attributable to owners of the Company | (8,748) | (92,525) | | Basic loss per share (RMB cents) | (3.32) | (35.08) | | Diluted loss per share (RMB cents) | (3.32) | (35.08) | - Loss for the period significantly narrowed by **90.5%**, from **RMB 92.5 million** in H1 2024 to **RMB 8.8 million** in H1 2025, primarily due to a reduction of approximately **RMB 79.4 million** in impairment losses under the expected credit loss model[4](index=4&type=chunk)[68](index=68&type=chunk) [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This section outlines the Group's financial position, including assets, liabilities, and equity, as of June 30, 2025, and December 31, 2024 [Financial Position Summary](index=4&type=section&id=Financial%20Position%20Summary) As of June 30, 2025, total assets were RMB 648,166 thousand, slightly up from RMB 638,355 thousand, while net current liabilities increased to RMB 15,838 thousand from RMB 8,258 thousand, indicating increased liquidity pressure Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | 2025 June 30 (RMB thousands) (Unaudited) | 2024 December 31 (RMB thousands) (Audited) | | :--- | :--- | :--- | | **Assets** | | | | Total non-current assets | 75,340 | 76,650 | | Total current assets | 572,826 | 561,705 | | **Total Assets** | **648,166** | **638,355** | | **Liabilities** | | | | Total current liabilities | 588,664 | 569,963 | | Net Current Liabilities | (15,838) | (8,258) | | Total non-current liabilities | 20,974 | 20,974 | | **Net Assets** | **38,528** | **47,418** | | **Equity** | | | | Equity attributable to owners of the Company | 37,360 | 46,248 | | Non-controlling interests | 1,168 | 1,170 | | **Total Equity** | **38,528** | **47,418** | - As of June 30, 2025, the Group's net current liabilities increased to approximately **RMB 15.8 million** from **RMB 8.3 million** as of December 31, 2024, with the current ratio decreasing from **0.99 times** to **0.97 times**[10](index=10&type=chunk)[70](index=70&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes explaining the accounting policies, basis of preparation, and specific financial items within the interim statements [1. General Information](index=6&type=section&id=1.%20General%20Information) Jiyi Holdings Limited is an investment holding company incorporated in the Cayman Islands, with subsidiaries primarily engaged in the sale and distribution of building and home decoration materials and furniture, and provision of interior design and construction engineering services in China - The Company is an investment holding company with primary operations in China, including the sale and distribution of building and home decoration materials, furniture, and provision of interior design and construction engineering services[12](index=12&type=chunk) - The ultimate controlling party is Ms. Hou Wei, who wholly owns Xinling Limited[11](index=11&type=chunk) [2. Significant Accounting Policies and Basis of Preparation](index=6&type=section&id=2.%20Significant%20Accounting%20Policies%20and%20Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in accordance with HKAS 34 and Appendix D2 of the Listing Rules; while directors expect sufficient resources for going concern, significant uncertainties remain regarding debt extensions, accelerated asset sales, and cost control [2.1 Basis of Preparation](index=6&type=section&id=2.1%20Basis%20of%20Preparation) The unaudited condensed consolidated financial statements are prepared in accordance with HKAS 34 Interim Financial Reporting and Appendix D2 of the Listing Rules - Financial statements are prepared in accordance with **HKAS 34** and **Appendix D2 of the Listing Rules**[13](index=13&type=chunk) [2.2 Going Concern Basis](index=7&type=section&id=2.2%20Going%20Concern%20Basis) As of June 30, 2025, the Group incurred a net loss of RMB 8.8 million, net current liabilities of RMB 15.8 million, and approximately RMB 154.3 million in defaulted bank borrowings, creating significant going concern uncertainties; the company has plans to mitigate liquidity pressure - As of June 30, 2025, the Group incurred a net loss of approximately **RMB 8.8 million** and net current liabilities of approximately **RMB 15.8 million**[15](index=15&type=chunk) - Approximately **RMB 154.3 million** in bank and other borrowings are in default or cross-default, constituting a material uncertainty to going concern[15](index=15&type=chunk) - The Company is negotiating repayment terms with creditors and may explore equity financing to repay part of the borrowings[16](index=16&type=chunk) - The Group plans to develop higher-margin interior design and construction engineering services, having secured **35 contracts** totaling approximately **RMB 1.0867 billion**[17](index=17&type=chunk) - The Group will accelerate the recovery of prepayments and other receivables, and seek to dispose of property, plant, and equipment and investment properties to generate additional cash flow[17](index=17&type=chunk) - The Group has implemented measures to control operating and administrative costs and will further reduce non-essential expenses[17](index=17&type=chunk) [2.3 Application of New and Revised HKFRSs](index=9&type=section&id=2.3%20Application%20of%20New%20and%20Revised%20HKFRSs) Revisions to HKFRSs, such as HKAS 27 'Lack of Exchangeability', adopted for the first time in this interim period, have no material impact on the Group's financial position or performance - The application of revised HKFRSs in this interim period has no material impact on the Group's financial position and performance[21](index=21&type=chunk) [3. Prior Period Adjustments](index=10&type=section&id=3.%20Prior%20Period%20Adjustments) The company made adjustments for unauthorized guarantee arrangements and unrecorded finance leases; while two unauthorized guarantee loans were found, they had no material impact on past financial statements, but unrecorded finance leases increased H1 2024 administrative and finance costs, restating loss for the period and total comprehensive loss by RMB 288 thousand [3.(a) Adjustments related to unauthorized guarantee loans](index=10&type=section&id=3.a%20Adjustments%20related%20to%20unauthorized%20guarantee%20loans) Independent consultants identified two unauthorized guarantee loans where group subsidiaries guaranteed private borrowings for Ms. Hou Wei and her spouse without formal board authorization; however, collateral assets were deemed sufficient to cover the guarantees, resulting in no material impact on past consolidated financial statements - Two unauthorized guarantee arrangements were identified, involving Group subsidiaries providing guarantees for private borrowings of Ms. Hou Wei and her spouse[22](index=22&type=chunk)[23](index=23&type=chunk) - Despite lacking formal board authorization, independent assessment concluded that the value of pledged assets was sufficient to cover the guaranteed amounts, resulting in no material impact on prior financial statements[25](index=25&type=chunk)[27](index=27&type=chunk) [3.(b) Adjustments related to unrecorded finance leases](index=11&type=section&id=3.b%20Adjustments%20related%20to%20unrecorded%20finance%20leases) Independent consultants identified unrecorded finance lease liabilities between Guangxi Jiyi and Guangji Lian, primarily for new energy vehicles; these unrecorded leases increased H1 2024 administrative expenses by RMB 248 thousand and finance costs by RMB 40 thousand, restating loss for the period and total comprehensive loss by RMB 288 thousand - Unrecorded finance lease liabilities were identified between Guangxi Jiyi and Guangji Lian, primarily involving new energy vehicles, totaling approximately **RMB 4,683 thousand** (2023: **RMB 4,871 thousand**)[28](index=28&type=chunk)[29](index=29&type=chunk) Impact of Unrecorded Finance Leases on H1 2024 Consolidated Statement of Profit or Loss | Indicator | Previously reported (RMB thousands) | Prior period adjustment (RMB thousands) | Restated (RMB thousands) | | :--- | :--- | :--- | :--- | | Administrative expenses | (8,955) | (248) | (9,203) | | Finance costs | (5,275) | (40) | (5,315) | | Loss before tax | (92,240) | (288) | (92,528) | | Loss for the year | (92,240) | (288) | (92,528) | | Total comprehensive loss for the year | (89,431) | (288) | (89,719) | | Basic loss per share attributable to owners of the Company for the year (RMB cents) | (34.97) | (0.11) | (35.08) | [4. Segment Information](index=13&type=section&id=4.%20Segment%20Information) The Group primarily operates two revenue streams: sales and distribution of goods, and provision of interior design and engineering services; in H1 2025, interior design and engineering services revenue grew significantly, accounting for 13.6% of total revenue, while sales and distribution of goods revenue decreased [Segment Revenue and Results](index=13&type=section&id=Segment%20Revenue%20and%20Results) In H1 2025, sales and distribution of goods revenue was RMB 166,836 thousand, and interior design and engineering services revenue was RMB 26,326 thousand; the higher gross margin of interior design and engineering services significantly contributed to the Group's overall gross profit growth Segment Revenue and Gross Profit (For the six months ended June 30) | Segment | 2025 Revenue (RMB thousands) | 2025 Gross Profit (RMB thousands) | 2024 Revenue (RMB thousands) | 2024 Gross Profit (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Sales and distribution of goods | 166,836 | 3,367 | 205,826 | 3,495 | | Interior design and engineering services | 26,326 | 3,949 | 1,013 | 132 | | **Total** | **193,162** | **7,316** | **206,839** | **3,627** | - In H1 2025, revenue from interior design and construction engineering services accounted for **13.6%** of total revenue (H1 2024: **0.5%**), while sales and distribution of goods accounted for **86.4%** (H1 2024: **99.5%**)[56](index=56&type=chunk) [Geographical Information](index=15&type=section&id=Geographical%20Information) The Group's operations are primarily located in China, with all external customer revenue and most non-current assets concentrated within China Geographical Revenue and Non-current Assets (As of June 30) | Region | 2025 Revenue (RMB thousands) | 2024 Revenue (RMB thousands) | 2025 June 30 Non-current Assets (RMB thousands) | 2024 December 31 Non-current Assets (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | China | 193,162 | 206,839 | 74,687 | 75,750 | | Hong Kong | – | – | 653 | 900 | | **Total** | **193,162** | **206,839** | **75,340** | **76,650** | [Information about Major Customers](index=15&type=section&id=Information%20about%20Major%20Customers) In H1 2025, Customer B contributed RMB 20,000 thousand in revenue, while Customer A contributed RMB 38,495 thousand in H1 2024, both from the sales and distribution of goods segment Major Customer Revenue (For the six months ended June 30) | Customer | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Customer A | – | 38,495 | | Customer B | 20,000 | – | [5. Revenue](index=16&type=section&id=5.%20Revenue) The Group's revenue primarily derives from bulk commodity trading, building material sales, and construction engineering services; in H1 2025, construction engineering services revenue grew significantly, while bulk commodity trading revenue decreased Disaggregation of Revenue from Contracts with Customers (For the six months ended June 30, 2025) | Goods and Services Category | Sales and distribution of goods (RMB thousands) | Interior design and engineering services (RMB thousands) | Total (RMB thousands) | | :--- | :--- | :--- | :--- | | Bulk commodity trading | 134,304 | – | 134,304 | | Building materials | 32,532 | – | 32,532 | | Construction engineering services | – | 26,326 | 26,326 | | **Total** | **166,836** | **26,326** | **193,162** | | Timing of revenue recognition: | | | | | At a point in time | 166,836 | – | 166,836 | | Over time | – | 26,326 | 26,326 | Disaggregation of Revenue from Contracts with Customers (For the six months ended June 30, 2024) | Goods and Services Category | Sales and distribution of goods (RMB thousands) | Interior design and engineering services (RMB thousands) | Total (RMB thousands) | | :--- | :--- | :--- | :--- | | Bulk commodity trading | 204,168 | – | 204,168 | | Building materials | 1,658 | – | 1,658 | | Interior design | – | 1,013 | 1,013 | | **Total** | **205,826** | **1,013** | **206,839** | | Timing of revenue recognition: | | | | | At a point in time | 205,826 | – | 205,826 | | Over time | – | 1,013 | 1,013 | [6. Profit for the Period](index=20&type=section&id=6.%20Profit%20for%20the%20Period) Profit for the period is derived after deducting or including items such as staff costs, auditor's remuneration, cost of inventories, depreciation, and rental income; total staff costs in H1 2025 were RMB 1,855 thousand, down from RMB 2,174 thousand in the prior period Key Deductions/Inclusions in Profit for the Period (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Total staff costs | 1,855 | 2,174 | | Auditor's remuneration | – | 485 | | Cost of inventories recognized as an expense | 185,846 | 203,212 | | Depreciation of property, plant and equipment | 908 | 908 | | Depreciation of right-of-use assets | 75 | 75 | | Gross rental income from investment properties | 192 | 192 | | Less: Direct operating expenses arising from investment properties that generated rental income during the period | (9) | (9) | [7. Income Tax Expense](index=21&type=section&id=7.%20Income%20Tax%20Expense) The Group's entities in the Cayman Islands and BVI are exempt from income tax; no provision for Hong Kong tax is made as income is not generated or derived from Hong Kong, and Chinese subsidiaries are subject to a 25% tax rate - Entities in the Cayman Islands and British Virgin Islands are exempt from income tax[46](index=46&type=chunk) - Chinese subsidiaries are subject to a tax rate of **25%**[47](index=47&type=chunk) [8. Loss Per Share](index=21&type=section&id=8.%20Loss%20Per%20Share) For the six months ended June 30, 2025, basic and diluted loss per share both narrowed significantly to RMB 3.32 cents from RMB 35.08 cents in the prior period; convertible loan notes and share options had an anti-dilutive effect and were not included in diluted EPS calculation Loss Per Share (For the six months ended June 30) | Indicator | 2025 (RMB cents) | 2024 (RMB cents) (Restated) | | :--- | :--- | :--- | | Basic loss per share | (3.32) | (35.08) | | Diluted loss per share | (3.32) | (35.08) | - Convertible loan notes and share options had an anti-dilutive effect on basic loss per share and were not included in the calculation of diluted earnings per share[49](index=49&type=chunk) [9. Dividends](index=22&type=section&id=9.%20Dividends) The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025, consistent with the prior period - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[50](index=50&type=chunk) [10. Trade and Other Receivables and Prepayments](index=23&type=section&id=10.%20Trade%20and%20Other%20Receivables%20and%20Prepayments) As of June 30, 2025, total trade and other receivables and prepayments were RMB 352,164 thousand, slightly down from RMB 354,857 thousand; trade receivables (net of allowance) were RMB 339,067 thousand, with a higher proportion aged over one to two years and over two years Trade and Other Receivables and Prepayments (As of June 30) | Item | 2025 June 30 (RMB thousands) | 2024 December 31 (RMB thousands) | | :--- | :--- | :--- | | Trade receivables (net of allowance for credit losses) | 339,067 | 346,018 | | Other receivables (net of allowance for credit losses) | 5,827 | 1,569 | | Prepayments (net of allowance for expected credit losses) | 7,270 | 7,270 | | **Total** | **352,164** | **354,857** | | Analyzed as: | | | | Non-current | 7,270 | 7,270 | | Current | 344,894 | 347,587 | Ageing Analysis of Trade Receivables (Net of Allowance) (As of June 30) | Ageing | 2025 June 30 (RMB thousands) | 2024 December 31 (RMB thousands) | | :--- | :--- | :--- | | Within six months | 104,937 | 111,888 | | Over one to two years | – | 1,441 | | Over two years | 234,130 | 232,689 | | **Total** | **339,067** | **346,018** | [11. Trade and Other Payables](index=25&type=section&id=11.%20Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables increased to RMB 249,942 thousand from RMB 242,155 thousand; trade payables were RMB 147,107 thousand, with approximately 27.8% aged over one year Trade and Other Payables (As of June 30) | Item | 2025 June 30 (RMB thousands) | 2024 December 31 (RMB thousands) | | :--- | :--- | :--- | | Trade payables | 147,107 | 139,178 | | Other payables | 102,835 | 102,977 | | **Total** | **249,942** | **242,155** | Ageing Analysis of Trade Payables (As of June 30) | Ageing | 2025 June 30 (RMB thousands) | 2024 December 31 (RMB thousands) | | :--- | :--- | :--- | | Within six months | 106,238 | 98,309 | | Over one year | 40,869 | 40,869 | | **Total** | **147,107** | **139,178** | [Management Discussion and Analysis](index=26&type=section&id=Management%20Discussion%20and%20Analysis) This section offers management's perspective on the Group's business and financial performance, liquidity, and future outlook [Business Review](index=26&type=section&id=Business%20Review) In H1 2025, the Group focused on interior design and construction engineering services, reducing resources for lower-margin goods sales and distribution, resulting in decreased total revenue but increased gross margin - In H1 2025, the Group focused on providing interior design and construction engineering services, reducing resource allocation to lower-margin goods sales and distribution[56](index=56&type=chunk) - Revenue from interior design and construction engineering services accounted for **13.6%** of total revenue (H1 2024: **0.5%**), while sales and distribution of goods accounted for **86.4%** (H1 2024: **99.5%**)[56](index=56&type=chunk) [Provision of Interior Design and Construction Engineering Services](index=26&type=section&id=Provision%20of%20Interior%20Design%20and%20Construction%20Engineering%20Services) In H1 2025, interior design and construction engineering services generated approximately RMB 26.3 million in revenue, with a gross profit of RMB 3.9 million and a gross margin of 15.0% Performance of Interior Design and Construction Engineering Services (For the six months ended June 30) | Indicator | 2025 H1 (RMB millions) | | :--- | :--- | | Revenue | 26.3 | | Gross profit | 3.9 | | Gross margin | 15.0% | [Sales and Distribution of Goods](index=26&type=section&id=Sales%20and%20Distribution%20of%20Goods) In H1 2025, sales and distribution of goods revenue decreased by approximately RMB 39.0 million or 18.9%, primarily due to lower bulk commodity trading revenue, despite an increase in building materials sales - Sales and distribution of goods revenue decreased by **18.9%** from **RMB 205.8 million** in H1 2024 to **RMB 166.8 million** in H1 2025[58](index=58&type=chunk) - The decrease was primarily attributable to reduced bulk commodity trading revenue[58](index=58&type=chunk) [Financial Review](index=27&type=section&id=Financial%20Review) The Group's total revenue decreased by 6.6%, but gross profit increased by 101.7%, driven by higher-margin interior design and construction engineering services; significantly reduced administrative expenses and a slight increase in finance costs led to a 90.5% narrowing of loss for the period [Revenue by Business Operation](index=27&type=section&id=Revenue%20by%20Business%20Operation) Total revenue decreased by 6.6% from RMB 206.8 million in H1 2024 to RMB 193.2 million in H1 2025; interior design and construction engineering services revenue grew significantly, while sales and distribution of goods revenue declined overall - Total revenue decreased by **6.6%** from **RMB 206.8 million** in H1 2024 to **RMB 193.2 million** in H1 2025[59](index=59&type=chunk) - Revenue from interior design and construction engineering services increased by approximately **RMB 25.3 million** to **RMB 26.3 million** (**2,530%** growth)[60](index=60&type=chunk) - Sales and distribution of goods revenue decreased overall by approximately **RMB 39.0 million** or **18.9%** to **RMB 166.8 million**[61](index=61&type=chunk) - Building materials sales revenue increased by approximately **RMB 30.9 million** or **1,862.1%** to **RMB 32.5 million**, primarily due to increased cement sales[62](index=62&type=chunk) - Bulk commodity trading revenue decreased by approximately **RMB 69.9 million** or **34.2%** to **RMB 134.3 million**, mainly due to reduced sales of electrolytic copper and aluminum ingots[63](index=63&type=chunk) [Gross Profit and Gross Margin](index=28&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Gross profit increased by 101.7% from RMB 3.6 million in H1 2024 to RMB 7.3 million in H1 2025, primarily due to higher-margin interior design and construction engineering services; gross margin for goods sales and distribution also improved - Gross profit increased by **101.7%** from **RMB 3.6 million** in H1 2024 to **RMB 7.3 million** in H1 2025[64](index=64&type=chunk) - The gross margin for interior design and construction engineering services was approximately **15.0%**[64](index=64&type=chunk) - The gross margin for sales and distribution of goods business increased from approximately **1.7%** in H1 2024 to **2.0%** in H1 2025[64](index=64&type=chunk) [Selling and Distribution Expenses](index=28&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses decreased by 37.0% from RMB 0.7 million in H1 2024 to RMB 0.5 million in H1 2025 - Selling and distribution expenses decreased by approximately **RMB 0.3 million** or **37.0%** to **RMB 0.5 million**[65](index=65&type=chunk) [Administrative Expenses](index=28&type=section&id=Administrative%20Expenses) Administrative expenses decreased by 63.3% from RMB 9.2 million in H1 2024 to RMB 3.4 million in H1 2025 - Administrative expenses decreased by approximately **RMB 5.8 million** or **63.3%** to **RMB 3.4 million**[66](index=66&type=chunk) [Finance Costs](index=28&type=section&id=Finance%20Costs) Finance costs increased by 2.1% from RMB 5.3 million in H1 2024 to RMB 5.4 million in H1 2025 - Finance costs increased by approximately **RMB 0.1 million** or **2.1%** to **RMB 5.4 million**[67](index=67&type=chunk) [Overall Loss Reduction](index=29&type=section&id=Overall%20Loss%20Reduction) H1 2025 loss was approximately RMB 8.8 million, a 90.5% reduction from RMB 92.5 million in the prior period, mainly due to a RMB 79.4 million decrease in impairment losses under the expected credit loss model and a RMB 5.8 million reduction in administrative expenses - Overall loss decreased by approximately **RMB 83.8 million** or **90.5%** to **RMB 8.8 million**[68](index=68&type=chunk) - Primarily attributable to a reduction of approximately **RMB 79.4 million** in impairment losses under the expected credit loss model and a **RMB 5.8 million** decrease in administrative expenses[68](index=68&type=chunk) [Liquidity, Financial and Capital Resources](index=29&type=section&id=Liquidity%2C%20Financial%20and%20Capital%20Resources) The Group meets liquidity needs through operating cash, bank borrowings, convertible loan notes, and amounts due to related parties; net current liabilities increased, the current ratio decreased, bank balances and cash declined, and bank borrowings are fully utilized and secured by assets and personal guarantees [Capital Structure](index=29&type=section&id=Capital%20Structure) In H1 2025, the Group met its liquidity needs through a combination of cash generated from operations, bank borrowings, convertible loan notes, and amounts due to related parties - Liquidity needs are met through operating cash, bank borrowings, convertible loan notes, and amounts due to related parties[69](index=69&type=chunk) [Liquidity and Financial Resources](index=29&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, net current liabilities increased to RMB 15.8 million, the current ratio decreased to 0.97 times, and bank balances and cash declined to approximately RMB 2.0 million - Net current liabilities increased from **RMB 8.3 million** as of December 31, 2024, to **RMB 15.8 million** as of June 30, 2025[70](index=70&type=chunk) - The current ratio decreased from approximately **0.99 times** as of December 31, 2024, to approximately **0.97 times** as of June 30, 2025[70](index=70&type=chunk) - Bank balances and cash were approximately **RMB 2.0 million** (December 31, 2024: **RMB 5.0 million**)[70](index=70&type=chunk) [Borrowings and Pledges of Assets](index=29&type=section&id=Borrowings%20and%20Pledges%20of%20Assets) As of June 30, 2025, the Group's short-term bank financing facilities were fully utilized, with total bank borrowings of approximately RMB 154.3 million, secured by property, plant and equipment, investment properties, and right-of-use assets, and co-guaranteed by Ms. Hou Wei and Mr. Deng Jianshen - Short-term bank financing facilities were fully utilized, with total bank borrowings of approximately **RMB 154.3 million**[71](index=71&type=chunk) - Bank borrowings are secured by property, plant and equipment, investment properties, and right-of-use assets, and co-guaranteed by Ms. Hou Wei and Mr. Deng Jianshen[72](index=72&type=chunk) [Material Investments, Acquisitions and Disposals](index=30&type=section&id=Material%20Investments%2C%20Acquisitions%20and%20Disposals) The Group had no material investment, acquisition, or disposal transactions in H1 2025 - There were no material investment, acquisition, or disposal transactions in H1 2025[73](index=73&type=chunk) [Capital Expenditure](index=30&type=section&id=Capital%20Expenditure) The Group incurred no material capital expenditure in H1 2025 - There was no material capital expenditure in H1 2025[74](index=74&type=chunk) [Capital Commitments](index=30&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group had no material outstanding capital commitments - As of June 30, 2025, there were no material outstanding capital commitments[75](index=75&type=chunk) [Contingent Liabilities](index=30&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, there were no material contingent liabilities[76](index=76&type=chunk) [Outlook](index=30&type=section&id=Outlook) The Group faces industry challenges and opportunities, remaining vigilant and adaptable to economic changes, focusing on providing reliable and sustainable materials to maintain its quality reputation; financial performance is expected to grow cautiously, with an emphasis on maintaining a solid financial foundation - The Group will remain vigilant, adapt to economic fluctuations, and focus on providing reliable and sustainable materials to maintain its quality reputation[77](index=77&type=chunk) - Financial performance is expected to grow cautiously, with an emphasis on maintaining a solid financial foundation[78](index=78&type=chunk) [Foreign Exchange Risk](index=31&type=section&id=Foreign%20Exchange%20Risk) The Group primarily transacts in RMB, facing foreign exchange risk related to HKD; management will closely monitor its impact, but currently has no foreign currency hedging policy - The Group primarily transacts in RMB, facing foreign exchange risk related to HKD[79](index=79&type=chunk) - Management will closely monitor foreign exchange risk but currently has no foreign currency hedging policy[79](index=79&type=chunk) [Litigation Matters](index=31&type=section&id=Litigation%20Matters) As of June 30, 2025, the Group accrued RMB 51.5 million in estimated liabilities for pending litigation, primarily due to increased financial pressure from the domestic economic downturn; management believes these lawsuits will not materially impact current financial statements due to property collateral and receivable coverage - As of June 30, 2025, accumulated estimated liabilities for pending litigation totaled **RMB 51.5 million** (December 31, 2024: **RMB 44.7 million**)[80](index=80&type=chunk) - Litigation cases primarily arose from increased financial pressure due to the domestic economic downturn[80](index=80&type=chunk) - Management believes that, due to collateralized properties and receivable coverage, the litigation will not have a material impact on the current financial statements[81](index=81&type=chunk) [Employees and Remuneration Policies](index=32&type=section&id=Employees%20and%20Remuneration%20Policies) As of June 30, 2025, the Group had 20 employees with total staff costs of approximately RMB 1.9 million; remuneration policy aims for fair and competitive treatment, considering workload, individual performance, company profitability, and market levels - As of June 30, 2025, the total number of employees was **20** (June 30, 2024: **20**)[82](index=82&type=chunk) - Total staff costs (including directors' emoluments) for H1 2025 were approximately **RMB 1.9 million** (H1 2024: **RMB 2.2 million**)[82](index=82&type=chunk) - Remuneration policy considers factors such as workload, responsibilities, individual performance, company performance and profitability, market levels, and overall economic conditions[82](index=82&type=chunk)[86](index=86&type=chunk) [Other Information](index=33&type=section&id=Other%20Information) This section covers additional disclosures including corporate governance, compliance, post-reporting period events, and trading status [Sufficiency of Public Float](index=33&type=section&id=Sufficiency%20of%20Public%20Float) The Company maintained a sufficient public float as required by the Listing Rules of The Stock Exchange of Hong Kong Limited throughout H1 2025 - The Company maintained a sufficient public float as required by the Listing Rules throughout H1 2025[83](index=83&type=chunk) [Events After Reporting Period](index=33&type=section&id=Events%20After%20Reporting%20Period) On July 28, 2025, former CFO and Company Secretary Mr. Law Wai Chiu filed a winding-up petition with the Hong Kong High Court against the Company, seeking its winding-up for outstanding wages, unpaid annual leave, and interest totaling HKD 325,966.69 - On July 28, 2025, Mr. Law Wai Chiu filed a winding-up petition with the Hong Kong High Court, seeking the winding-up of the Company[84](index=84&type=chunk) - The petition involves outstanding wages, unpaid annual leave, and interest totaling **HKD 325,966.69**[84](index=84&type=chunk) [Corporate Governance Code](index=34&type=section&id=Corporate%20Governance%20Code) The Company is committed to high corporate governance standards, adopting the CG Code in Appendix C1 of the Listing Rules; it complied with the CG Code in H1 2025, except for a period from September 3, 2024, to June 6, 2025, when the number of independent non-executive directors did not meet Listing Rules requirements - The Company has adopted the Corporate Governance Code as set out in Appendix C1 of the Listing Rules[87](index=87&type=chunk) - From September 3, 2024, to June 6, 2025, the number of independent non-executive directors and audit committee members did not meet Listing Rules requirements[89](index=89&type=chunk) - As of June 6, 2025, with the appointment of new independent non-executive directors, the Company has complied with the relevant Listing Rules requirements[89](index=89&type=chunk) [Compliance with Model Code](index=35&type=section&id=Compliance%20with%20Model%20Code) Directors adopted the Model Code in Appendix C3 of the Listing Rules as their code of conduct for dealing in the Company's securities and confirmed full compliance in H1 2025 - All Directors confirmed full compliance with the required standards of dealing as set out in the Model Code throughout H1 2025[90](index=90&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=35&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) In H1 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - Neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities in H1 2025[91](index=91&type=chunk) [Review of Interim Results](index=35&type=section&id=Review%20of%20Interim%20Results) The Audit Committee reviewed the Group's accounting principles and practices, discussed internal controls and financial reporting matters, including the interim results for the six months ended June 30, 2025, and recommended their adoption by the Board - The Audit Committee reviewed the interim results and recommended their adoption by the Board[92](index=92&type=chunk) [Publication of Interim Results and Interim Report](index=35&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report) This interim results announcement has been published on the Company's website and the HKEX website; the interim report containing all information will be published and dispatched to shareholders on or before October 30, 2025 - The interim results announcement has been published on the Company's website and the HKEX website[93](index=93&type=chunk) - The interim report, containing all information, will be published and dispatched to shareholders on or before October 30, 2025[93](index=93&type=chunk) [Continued Suspension of Trading](index=36&type=section&id=Continued%20Suspension%20of%20Trading) Trading in the Company's shares has been suspended on the Stock Exchange since April 2, 2024, and will remain suspended until further notice - Trading in the Company's shares has been suspended on the Stock Exchange since **April 2, 2024**, and will remain suspended[94](index=94&type=chunk)

[Company Information](index=3&type=section&id=Company%20Information) This section provides essential corporate details, including board composition, committee memberships, and key contact and registration information [Board of Directors and Committees](index=3&type=section&id=Board%20of%20Directors%20and%20Committees) This section details Visen Pharmaceuticals' Board members and committee compositions, noting recent changes - Mr. Michael J CHANG resigned as a non-executive director on **August 27, 2025**[7](index=7&type=chunk) - Mr. ZHANG Qing was appointed as an independent non-executive director and joined the Audit Committee on **August 27, 2025**[7](index=7&type=chunk) - Mr. FU Shan ceased to be a member of the Audit Committee on **August 27, 2025**[7](index=7&type=chunk) [Company Contact and Registration Information](index=3&type=section&id=Company%20Contact%20and%20Registration%20Information) This section provides key contact and registration details for Visen Pharmaceuticals, including its registered office, headquarters, and official website - The auditor is **Ernst & Young**[7](index=7&type=chunk) - The company's headquarters are located at Room 3-108, 3/F, Building B, Hengtai Ideal Innovation Building, No. 69 Jiuzhang Road, Suzhou, China[8](index=8&type=chunk) - The stock code is **2561**, and the official website is **https://www.visenpharma.com**[9](index=9&type=chunk) [Financial Highlights](index=5&type=section&id=Financial%20Highlights) Visen Pharmaceuticals reported an expanded loss in H1 2025, but significantly increased cash and cash equivalents, improving its balance sheet structure after a global offering Key Financial Data for H1 2025 | Metric | Six Months Ended June 30, 2025 (RMB '000) | Six Months Ended June 30, 2024 (RMB '000) | | :--- | :--- | :--- | | Other income | 5,301 | 7,248 | | Net other gains and losses | (7,062) | 1,582 | | Research and development costs | (46,621) | (38,917) | | Administrative expenses | (60,045) | (43,643) | | Finance costs | (39) | (90) | | Listing expenses | (9,554) | (9,651) | | Loss for the period | (118,020) | (83,471) | | Loss per share (basic and diluted) (RMB) | (1.18) | (0.89) | Balance Sheet (Period-end) | Metric | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Cash and cash equivalents | 805,909 | 203,587 | | Total assets | 893,359 | 293,823 | | Total liabilities | 37,807 | 52,548 | | Total equity | 855,552 | 241,275 | [Management Discussion and Analysis](index=6&type=section&id=Management%20Discussion%20and%20Analysis) This section covers Visen Pharmaceuticals' business overview, product pipeline, financial status, R&D, IP, employees, and future strategy, highlighting core product progress and enhanced liquidity from its IPO [Overview and Product Pipeline](index=6&type=section&id=Overview%20and%20Product%20Pipeline) Visen Pharmaceuticals is a late-stage biopharmaceutical company focused on endocrine disease treatments in China, with core product lonapegsomatropin and two key products, palopegteriparatide and navepegritide, showing significant clinical and regulatory progress - The company, established in **November 2018**, is a late-stage biopharmaceutical company focused on providing treatment solutions for specific endocrine diseases in China (including Hong Kong, Macau, and Taiwan)[12](index=12&type=chunk) - The core product, lonapegsomatropin, has completed its China Phase 3 pivotal trial, with its BLA accepted by the NMPA in **March 2024** and currently undergoing a second round of technical review[13](index=13&type=chunk)[14](index=14&type=chunk) - The key candidate drug, palopegteriparatide, is undergoing a China Phase 3 pivotal trial, with the double-blind phase completed in **January 2023**[13](index=13&type=chunk)[14](index=14&type=chunk) - Another key candidate drug, navepegritide, has completed both the double-blind and open-label phases of its China Phase 2 clinical trial[13](index=13&type=chunk)[14](index=14&type=chunk) [Core Product: Lonapegsomatropin](index=7&type=section&id=Core%20Product%3A%20Lonapegsomatropin) Lonapegsomatropin, the company's core product for pediatric growth hormone deficiency, has completed China Phase 3 trials, submitted BLA, and is expected to be approved in Q4 2025, with active commercialization preparations underway - Lonapegsomatropin has demonstrated statistically significant superiority in 52-week AHV compared to daily human growth hormone, being the only long-acting growth hormone to show superiority and comparable safety in a positive drug-controlled, parallel-group trial against short-acting human growth hormone[18](index=18&type=chunk) - The BLA for lonapegsomatropin for PGHD treatment was accepted by the NMPA on **March 7, 2024**, with the second round of technical review initiated on **May 21, 2025**, and BLA approval anticipated in **Q4 2025**[20](index=20&type=chunk)[21](index=21&type=chunk) - The company has entered into a commercial supply framework agreement with Ascendis Pharma to ensure core product supply post-commercialization and is collaborating with WuXi Biologics for localized production technology transfer, expected to be completed by **2027** with commercialization of localized products by **2028**[23](index=23&type=chunk)[24](index=24&type=chunk)[26](index=26&type=chunk) - The US FDA has approved SKYTROFA® (lonapegsomatropin-tcgd) for the replacement of endogenous growth hormone in adults with growth hormone deficiency (GHD)[28](index=28&type=chunk) - The company is increasing its field medical representatives, medical training, channel management, medical affairs, and customer service personnel, and has formed strategic partnerships with Shanghai Pharma, United Family Healthcare, and Anhui Anke Biotechnology (Group) Co., Ltd. to strengthen its commercial team and market penetration[29](index=29&type=chunk) [Key Product: Palopegteriparatide](index=10&type=section&id=Key%20Product%3A%20Palopegteriparatide) Palopegteriparatide, a key product for adult hypoparathyroidism, has completed its China Phase 3 double-blind trial, achieving primary endpoints, with the open-label phase ongoing and expected to finish by late 2025 - The double-blind phase of the China Phase 3 pivotal trial was completed in **January 2023**, with key data indicating achievement of primary and key secondary efficacy endpoints[31](index=31&type=chunk) - The open-label phase of the China Phase 3 pivotal trial is ongoing, with the 3-year open-label phase expected to be completed by **late 2025**[32](index=32&type=chunk) - The company plans to introduce palopegteriparatide through the clinical urgent use channel in the Boao Lecheng International Medical Tourism Pilot Zone, with the first patient expected to receive prescription and treatment by **year-end 2025**[33](index=33&type=chunk) - Partner Ascendis Pharma's global Phase 2 and 3 trial data indicate that long-term use of palopegteriparatide for adult hypoparathyroidism continues to provide sustained efficacy[33](index=33&type=chunk) [Key Product: Navepegritide](index=11&type=section&id=Key%20Product%3A%20Navepegritide) Navepegritide, a key product for children with achondroplasia in China, has completed its Phase 2 clinical trial, achieving primary endpoints, with results submitted to the NMPA - The China Phase 2 trial for navepegritide in achondroplasia was completed on **May 12, 2025** (including 52-week double-blind and 52-week open-label phases), with results submitted to the NMPA drug registration platform[36](index=36&type=chunk) - Final results from the China Phase 2 trial showed that navepegritide maintained clinical efficacy and good safety in treating Chinese children with achondroplasia, with the 100μg CNP/kg/week navepegritide group achieving a higher AGV (**5.939 cm/year**) compared to placebo (**4.760 cm/year**)[37](index=37&type=chunk) - The company expects to hold a consultation meeting with the NMPA's Center for Drug Evaluation (CDE) before year-end regarding priority review eligibility and rare disease review procedures[38](index=38&type=chunk) - Partner Ascendis Pharma announced that the US FDA has accepted its NDA for navepegritide for pediatric achondroplasia for priority review, setting a PDUFA target date of **November 30, 2025**[38](index=38&type=chunk) [Financial Position](index=12&type=section&id=Financial%20Position) As of June 30, 2025, the company's cash and cash equivalents significantly increased to RMB 806 million, primarily due to net proceeds from its global offering, enhancing financial flexibility and liquidity Cash and Cash Equivalents | Metric | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Cash and cash equivalents | 805,909 | 203,587 | - Cash and cash equivalents increased by **RMB 602 million** from year-end 2024, primarily from net proceeds of the global offering upon the company's listing on the HKEX on **March 21, 2025**[39](index=39&type=chunk) - The company recently secured an unsecured bank credit facility of **RMB 300 million**, which will enhance capital utilization efficiency and financial flexibility[39](index=39&type=chunk) [Collaborations](index=12&type=section&id=Collaborations) The company signed a strategic cooperation agreement with the China Alliance for Rare Diseases to expand collaboration in pediatric growth and development, focusing on disease mechanisms, diagnosis, treatment, and prognosis - The company signed a strategic cooperation agreement with the **China Alliance for Rare Diseases**, continuing their partnership[40](index=40&type=chunk) - The collaboration will expand from achondroplasia to broader pediatric growth and development, jointly researching disease pathogenesis, diagnosis, clinical treatment, and prognosis[40](index=40&type=chunk) [Research and Development](index=12&type=section&id=Research%20and%20Development) The company maintains a strong internal R&D team focused on endocrinology and pediatrics, with 31 full-time employees as of June 30, 2025, and R&D expenses of approximately RMB 46.6 million for the period, primarily for technology transfer and localization - As of **June 30, 2025**, the R&D team comprised **31 full-time employees**, with approximately **42% holding PhD or MD degrees**[41](index=41&type=chunk) - The R&D team possesses an average of over **15 years of experience** in clinical development of drugs and/or endocrine therapies[41](index=41&type=chunk) R&D Expenditure Details | R&D Expenditure Item | Six Months Ended June 30, 2025 (RMB '000) | Six Months Ended June 30, 2024 (RMB '000) | | :--- | :--- | :--- | | Contract costs | 21,825 | 12,820 | | Raw materials and consumables | 2,824 | 3,318 | | Staff costs | 14,363 | 17,469 | | Share-based payment expenses | 5,368 | 993 | | Depreciation and amortization | 722 | 1,512 | | Others | 1,519 | 2,805 | | **Total** | **46,621** | **38,917** | - R&D expenses for the reporting period were approximately **RMB 46.6 million**, primarily due to increased costs associated with technology transfer and localization[42](index=42&type=chunk)[55](index=55&type=chunk) [Intellectual Property](index=13&type=section&id=Intellectual%20Property) The company holds exclusive IP rights in China for developing, manufacturing, and commercializing its core products and other candidates, including 58 granted patents and 56 pending applications under exclusive license, plus proprietary patents - The company holds exclusive licenses for **58 granted patents** and **56 pending patent applications** in China (including Hong Kong, Macau, and Taiwan) obtained from Ascendis Pharma[44](index=44&type=chunk) - The company also currently holds **4 proprietary pending patent applications** in China related to lonapegsomatropin[44](index=44&type=chunk) - The company co-owns **3 granted patents** and **13 pending patent applications** in China related to container closure systems[44](index=44&type=chunk)[46](index=46&type=chunk) - As of the report date, the company holds **127 registered trademarks** and **40 pending trademark applications** in China (including Hong Kong, Macau, and Taiwan)[46](index=46&type=chunk) [Employees and Remuneration Policy](index=14&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the group had 54 full-time employees with a remuneration package including salaries, benefits, bonuses, and share options, and total staff costs for the period increased to approximately RMB 66.3 million - As of **June 30, 2025**, the Group had **54 full-time employees**, all located in China (including Hong Kong, Macau, and Taiwan)[47](index=47&type=chunk) - The Group's employee remuneration package includes salaries, benefits, bonuses, and share options, designed to compensate employees based on performance[47](index=47&type=chunk) - Total staff costs (including directors' and CEO's emoluments) incurred by the Group for the six months ended June 30, 2025, were approximately **RMB 66.3 million**, compared to approximately **RMB 55.5 million** for the six months ended June 30, 2024[47](index=47&type=chunk) [Future Outlook](index=15&type=section&id=Future%20Outlook) The company plans to advance regulatory approvals and clinical development, build commercialization capabilities, ensure localized production, expand indications, and grow its product pipeline through strategic collaborations to become a leading endocrinology enterprise in China - Expedite regulatory approval for core products and clinical development and regulatory approval for other pipeline candidates[51](index=51&type=chunk) - Establish commercialization capabilities supported by patient support and market access, laying the groundwork for future candidate commercialization[51](index=51&type=chunk) - Establish localized production capabilities to ensure the supply of core products and future potential candidate drugs in China[51](index=51&type=chunk) - Further expand the product pipeline through strategic in-licensing, collaborations, and partnerships, introducing endocrine therapies seeking entry into China[51](index=51&type=chunk) [Financial Review](index=16&type=section&id=Financial%20Review) During the reporting period, the company experienced decreased other income, a shift from net other gains to losses, and increased R&D and administrative expenses, leading to a 41.4% expansion in loss for the period to RMB 118.0 million Financial Performance Review | Metric | Six Months Ended June 30, 2025 (RMB '000) | Six Months Ended June 30, 2024 (RMB '000) | Change | | :--- | :--- | :--- | :--- | | Other income | 5,301 | 7,248 | -26.9% | | Net other gains and losses | (7,062) | 1,582 | Shift from gain to loss | | Research and development costs | (46,621) | (38,917) | +19.8% | | Administrative expenses | (60,045) | (43,643) | +37.6% | | Loss for the period | (118,020) | (83,471) | +41.4% | - Other income decreased by **26.9%** to **RMB 5.3 million**, primarily due to a non-recurring government grant of **RMB 2.9 million** recognized in the six months ended June 30, 2024, partially offset by a **RMB 1.0 million** increase in bank interest income from higher average deposit balances post-listing[52](index=52&type=chunk) - Net other gains and losses shifted from a gain of **RMB 1.6 million** for the six months ended June 30, 2024, to a loss of **RMB 7.1 million** for the six months ended June 30, 2025, primarily due to unfavorable exchange rate fluctuations during the reporting period[53](index=53&type=chunk) - Research and development costs increased by **19.8%** to **RMB 46.6 million**, primarily due to increased costs associated with technology transfer and localization[55](index=55&type=chunk) - Administrative expenses increased by **37.6%** to **RMB 60.0 million**, primarily due to increased share-based payment expenses under the share award scheme and higher professional service fees post-listing[56](index=56&type=chunk) [Liquidity and Capital Resources](index=17&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company's cash and cash equivalents significantly increased to RMB 806 million, primarily from global offering proceeds, providing a strong financial foundation despite negative operating cash flow, with no outstanding borrowings and improved current ratio - As of **June 30, 2025**, cash and cash equivalents were **RMB 806 million**, an increase of **RMB 602 million** from year-end 2024, primarily from net proceeds of the global offering[39](index=39&type=chunk)[60](index=60&type=chunk) - Net cash used in operating activities for the six months ended June 30, 2025, was **RMB 108.7 million**[60](index=60&type=chunk) - The current ratio increased from **4.3** as of December 31, 2024, to **23.0** as of June 30, 2025, primarily due to a significant increase in cash and cash equivalents[64](index=64&type=chunk) - As of **June 30, 2025**, the company had no outstanding borrowings[65](index=65&type=chunk) - As of **June 30, 2025**, the company recorded net current assets of **RMB 831.4 million**, an increase of **RMB 661.0 million** from **RMB 170.4 million** as of December 31, 2024[69](index=69&type=chunk) [Material Investments and Acquisitions/Disposals](index=19&type=section&id=Material%20Investments%20and%20Acquisitions%2FDisposals) During the reporting period, the Group made no material investments, had no future plans for significant investments or capital assets beyond those disclosed in the prospectus, and conducted no material acquisitions or disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, the Group made no material investments[71](index=71&type=chunk) - As of the report date, the Group has no material investment and capital asset plans other than those disclosed in the 'Use of Proceeds' section of this report[72](index=72&type=chunk) - For the six months ended June 30, 2025, the Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures[73](index=73&type=chunk) [Supplementary Information](index=20&type=section&id=Supplementary%20Information) This section covers interim dividend policy, corporate governance, securities trading, board changes, major shareholder interests, equity incentive plans, and use of global offering proceeds [Interim Dividend](index=20&type=section&id=Interim%20Dividend) The Board of Directors resolved not to recommend an interim dividend for the six months ended June 30, 2025 - The Board of Directors resolved not to recommend an interim dividend for the six months ended **June 30, 2025**[75](index=75&type=chunk) [Corporate Governance](index=20&type=section&id=Corporate%20Governance) The company adheres to high corporate governance standards, complying with the Listing Rules' Corporate Governance Code since its listing, with the Audit Committee reviewing the interim financial report - The company has adopted the principles and code provisions of the Corporate Governance Code set out in Appendix C1 to the Listing Rules as the basis for its corporate governance practices[77](index=77&type=chunk) - Former Board Chairman Mr. Michael Wolff JENSEN was unable to attend the AGM held on **June 27, 2025**, due to other work commitments, with the meeting chaired by Executive Director and CEO Mr. LU Anbang[77](index=77&type=chunk) - The Audit Committee has discussed and reviewed this interim report with management and external auditors, concluding that the interim results comply with applicable accounting principles, standards, and requirements[81](index=81&type=chunk) - The interim financial statements for the six months ended June 30, 2025, are unaudited but have been reviewed by the company's auditor, Ernst & Young, in accordance with Hong Kong Standard on Review Engagements 2410[81](index=81&type=chunk) [Securities Transactions and Investments](index=21&type=section&id=Securities%20Transactions%20and%20Investments) The company adopted the Model Code for directors' securities transactions, with all directors confirming compliance, and neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities during the period - Following specific inquiries to all directors, all directors confirmed their compliance with the Model Code from the listing date up to the date of this report[79](index=79&type=chunk) - From the listing date up to the date of this interim report, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[82](index=82&type=chunk) - As of the report date, the Group has no material investment and capital asset plans other than those disclosed in the prospectus and the 'Use of Proceeds' section of this report[83](index=83&type=chunk) [Changes to Board and Directors' Information](index=21&type=section&id=Changes%20to%20Board%20and%20Directors'%20Information) Mr. Michael Wolff JENSEN and Mr. Jan Møller MIKKELSEN retired after the AGM on June 27, 2025, with Mr. FU Shan succeeding as Chairman, and Mr. Michael J. CHANG resigning as non-executive director, replaced by Mr. ZHANG Qing as independent non-executive director on August 27, 2025 - Mr. Michael Wolff JENSEN and Mr. Jan Møller MIKKELSEN retired after the company's Annual General Meeting held on **June 27, 2025**[84](index=84&type=chunk) - Mr. FU Shan was proposed and elected to succeed as Chairman of the Board, effective from the conclusion of the AGM[84](index=84&type=chunk) - Mr. Michael J. CHANG resigned as a non-executive director, effective **August 27, 2025**[84](index=84&type=chunk) - Mr. ZHANG Qing was appointed as an independent non-executive director, effective **August 27, 2025**[84](index=84&type=chunk) [Equity Disclosure](index=22&type=section&id=Equity%20Disclosure) This section discloses interests of directors, chief executives, and major shareholders in the company's shares, with Executive Director Mr. LU Anbang holding approximately 4.77% and major shareholders Ascendis Pharma A/S and Vivo Capital IX (Cayman), LLC. holding 36.11% and 32.62% respectively Interests of Directors and Chief Executive in the Company's Shares | Name of Director | Nature of Interest | Number of Shares (2) | Approximate Percentage of Shareholding (3) | | :--- | :--- | :--- | :--- | | Mr. LU Anbang | Beneficiary of trust / Settlor of discretionary trust | 5,435,000 (L) | 4.77% | Interests and Short Positions of Substantial Shareholders and Other Persons in the Company's Shares and Underlying Shares | Name of Shareholder | Capacity / Nature of Interest | Number of Shares (3) | Approximate Percentage of Shareholding (4) | | :--- | :--- | :--- | :--- | | Ascendis Pharma A/S (1) | Interest in controlled corporation | 41,136,364 (L) | 36.11% | | Vivo Capital IX (Cayman), LLC. (2) | Interest in controlled corporation | 37,167,064 (L) | 32.62% | - Ascendis Pharma A/S holds a total of **41,136,364 shares** through its wholly-owned subsidiaries Ascendis Pharma Endocrinology Division, Ascendis Pharma Growth Disorders, and Ascendis Pharma Bone Diseases[90](index=90&type=chunk) - Vivo Capital IX (Cayman), LLC. holds a total of **37,167,064 shares** through its controlled entities Vivo Capital Fund IX (Cayman), L.P. and Vivo Plenilune IX Limited[90](index=90&type=chunk) [Equity Incentive Plans](index=24&type=section&id=Equity%20Incentive%20Plans) The company has an equity incentive plan and a post-IPO share award scheme to incentivize and retain talent, with 8,845,500 unexercised restricted share units under the former and 435,000 award shares granted to Mr. LU Anbang under the latter - The equity incentive plan aims to help the company and its affiliates acquire and retain the services of eligible awardees, motivating them to contribute their utmost to the success of the company and its affiliates[92](index=92&type=chunk) - As of the date of this interim report, **8,845,500 unexercised restricted share units** equivalent to shares have been granted to **23 grantees** under the equity incentive plan, of which **5,000,000 shares** were granted to Mr. LU[93](index=93&type=chunk)[95](index=95&type=chunk) - The post-IPO share award scheme aims to align the interests of eligible participants with those of the Group through share ownership, dividends, other paid distributions related to shares, and/or share appreciation[97](index=97&type=chunk) - On **June 12, 2025**, the Board resolved to grant a total of **435,000 award shares** to Mr. LU Anbang, the company's Executive Director and CEO, under the post-IPO share award scheme, which was approved at the AGM on **June 27, 2025**[102](index=102&type=chunk)[104](index=104&type=chunk) - As of the date of this interim report, **1,964,500 new shares** remain available for grant under the post-IPO share award scheme[103](index=103&type=chunk) [Use of Proceeds from Global Offering](index=28&type=section&id=Use%20of%20Proceeds%20from%20Global%20Offering) The net proceeds from the global offering were approximately HK$672.3 million (RMB 620.2 million), with the company maintaining its planned use of proceeds as stipulated in the prospectus, having utilized RMB 44.8 million by June 30, 2025, primarily for lonapegsomatropin BLA registration and R&D - Net proceeds from the global offering (after full exercise of the over-allotment option) were approximately **HK$672.3 million** (equivalent to **RMB 620.2 million**)[106](index=106&type=chunk) - The company has not changed the planned use of proceeds as stipulated in the prospectus[106](index=106&type=chunk) Details of Use of Proceeds from Global Offering (As of June 30, 2025) | Purpose | Planned Net Proceeds (RMB million) | Actual Amount Utilized (RMB million) | Unutilized Amount (RMB million) | | :--- | :--- | :--- | :--- | | Import BLA registration for lonapegsomatropin | 43.4 | 18.3 | 25.1 | | R&D for locally manufactured lonapegsomatropin products | 126.5 | 9.7 | 116.8 | | R&D for new indication expansion of lonapegsomatropin | 196.6 | – | 196.6 | | Commercial supply of lonapegsomatropin | 154.4 | – | 154.4 | | R&D and regulatory application for palopegteriparatide | 47.1 | 8.0 | 39.1 | | R&D for China Phase 2 trial of navepegritide | 11.2 | 5.8 | 5.4 | | General working capital | 41.0 | 3.0 | 38.0 | | **Total** | **620.2** | **44.8** | **575.4** | [Events After Reporting Period](index=29&type=section&id=Events%20After%20Reporting%20Period) No significant events affecting the company occurred from the end of the reporting period up to the date of this interim report, other than those already disclosed - Other than those disclosed in this interim report, no significant events affecting the company occurred from the end of the reporting period up to the date of this interim report[109](index=109&type=chunk) [Independent Review Report](index=30&type=section&id=Independent%20Review%20Report) Ernst & Young reviewed Visen Pharmaceuticals' interim condensed consolidated financial information for the six months ended June 30, 2025, concluding it was prepared in all material respects according to IAS 34 - Ernst & Young has reviewed the condensed consolidated statement of financial position of Visen Pharmaceuticals and its subsidiaries as of **June 30, 2025**, and the related financial statements for the six-month period ended on that date[110](index=110&type=chunk) - A review is substantially less in scope than an audit conducted in accordance with Hong Kong Standards on Auditing, and consequently, no audit opinion is expressed[111](index=111&type=chunk) - Based on the review, nothing has come to the reviewer's attention that causes them to believe the interim financial information is not prepared, in all material respects, in accordance with International Accounting Standard 34[112](index=112&type=chunk) [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=31&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company reported a loss for the period of RMB 118,020 thousand, an increase from RMB 83,471 thousand in the prior year, with basic and diluted loss per share at RMB 1.18 Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | Six Months Ended June 30, 2025 (RMB '000) | Six Months Ended June 30, 2024 (RMB '000) | | :--- | :--- | :--- | | Other income | 5,301 | 7,248 | | Net other gains and losses | (7,062) | 1,582 | | Research and development costs | (46,621) | (38,917) | | Administrative expenses | (60,045) | (43,643) | | Finance costs | (39) | (90) | | Listing expenses | (9,554) | (9,651) | | Loss before tax | (118,020) | (83,471) | | Loss for the period | (118,020) | (83,471) | | Total comprehensive loss for the period | (117,891) | (83,645) | | Loss per share (basic and diluted) (RMB) | (1.18) | (0.89) | [Interim Condensed Consolidated Statement of Financial Position](index=32&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets increased to RMB 893,359 thousand, with cash and cash equivalents significantly rising to RMB 805,909 thousand, while total liabilities decreased and total equity grew substantially to RMB 855,552 thousand, indicating improved financial health Interim Condensed Consolidated Statement of Financial Position | Metric | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Total non-current assets | 24,105 | 71,250 | | Total current assets | 869,254 | 222,573 | | **Total assets** | **893,359** | **293,823** | | Total current liabilities | 37,807 | 52,188 | | Total non-current liabilities | – | 360 | | **Total liabilities** | **37,807** | **52,548** | | **Total equity** | **855,552** | **241,275** | - Net current assets increased from **RMB 170,385 thousand** as of December 31, 2024, to **RMB 831,437 thousand** as of June 30, 2025[116](index=116&type=chunk) [Interim Condensed Consolidated Statement of Changes in Equity](index=34&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, total equity increased from RMB 241,275 thousand to RMB 855,552 thousand, primarily driven by RMB 697,863 thousand from shares issued in the IPO, despite a loss of RMB 118,020 thousand for the period Interim Condensed Consolidated Statement of Changes in Equity | Metric | As of January 1, 2025 (RMB '000) | Loss for the period (RMB '000) | Shares issued on initial public offering (RMB '000) | Equity-settled share-based payments (RMB '000) | As of June 30, 2025 (RMB '000) | | :--- | :--- | :--- | :--- | :--- | :--- | | Total | 241,275 | (118,020) | 697,863 | 34,305 | 855,552 | - Shares issued on initial public offering amounted to **RMB 697,863 thousand**, significantly increasing total equity[119](index=119&type=chunk) [Interim Condensed Consolidated Statement of Cash Flows](index=35&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash and cash equivalents increased by RMB 602,193 thousand, primarily due to net cash from financing activities of RMB 701,641 thousand (including share issuance proceeds), offsetting net cash used in operating activities of RMB 108,688 thousand Interim Condensed Consolidated Statement of Cash Flows | Cash Flow Category | Six Months Ended June 30, 2025 (RMB '000) | Six Months Ended June 30, 2024 (RMB '000) | | :--- | :--- | :--- | | Net cash flows used in operating activities | (108,688) | (69,305) | | Net cash flows from investing activities | 9,240 | – | | Net cash flows from financing activities | 701,641 | (1,984) | | Net increase in cash and cash equivalents | 602,193 | (71,289) | | Cash and cash equivalents at end of period | 805,909 | 276,319 | - Net cash flows from financing activities primarily resulted from proceeds from issuance of shares of **RMB 723,210 thousand**[121](index=121&type=chunk) [Notes to Interim Condensed Consolidated Financial Information](index=36&type=section&id=Notes%20to%20Interim%20Condensed%20Consolidated%20Financial%20Information) These notes detail the company's basic information, financial statement preparation, accounting policy changes, operating segments, income and expense breakdowns, taxes, dividends, EPS calculation, prepayments, cash, payables, share capital, commitments, related party transactions, and post-reporting period events [Company Information and Basis of Preparation](index=36&type=section&id=Company%20Information%20and%20Basis%20of%20Preparation) Visen Pharmaceuticals, incorporated in the Cayman Islands on November 1, 2018, focuses on developing and commercializing endocrine therapies, with its interim condensed consolidated financial information prepared according to IAS 34 and consistent accounting policies - The company was incorporated in the Cayman Islands on **November 1, 2018**, primarily engaged in the development and commercialization of endocrine therapies[122](index=122&type=chunk) - This interim condensed consolidated financial information has been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' and should be read in conjunction with the Group's consolidated financial statements in the Accountants' Report set out in Appendix I to the company's prospectus[123](index=123&type=chunk) - The accounting policies adopted in the preparation of the interim condensed consolidated financial information are consistent with those applied in the preparation of the Accountants' Report[123](index=123&type=chunk) [Operating Segments and Geographical Information](index=37&type=section&id=Operating%20Segments%20and%20Geographical%20Information) The Group operates as a single reportable segment focused on developing and commercializing disruptive endocrine therapies, with no geographical segment information presented as almost all non-current assets are located in mainland China - For management purposes, the Group has only one reportable operating segment, which is the development and commercialization of disruptive endocrine therapies[127](index=127&type=chunk) - As almost all of the Group's non-current assets are located in mainland China, no geographical segment information is presented in accordance with IFRS 8 'Operating Segments'[128](index=128&type=chunk) [Other Income and Gains/Losses](index=37&type=section&id=Other%20Income%20and%20Gains%2FLosses) For the six months ended June 30, 2025, other income decreased by 26.9% to RMB 5,301 thousand due to reduced non-recurring government subsidies, while net other gains and losses shifted from a gain to a loss of RMB 7,062 thousand, primarily from unfavorable exchange rate fluctuations Other Income | Metric | Six Months Ended June 30 (RMB '000) | | :--- | :--- | | 2025 | 5,301 | | 2024 | 7,248 | - Other income decreased by **26.9%**, primarily due to a non-recurring government grant of **RMB 2.9 million** recognized in the six months ended June 30, 2024, partially offset by a **RMB 1.0 million** increase in bank interest income from higher average deposit balances post-listing[52](index=52&type=chunk)[129](index=129&type=chunk) Net Other Gains and Losses | Metric | Six Months Ended June 30 (RMB '000) | | :--- | :--- | | 2025 | (7,062) | | 2024 | 1,582 | - Net other gains and losses shifted from a gain of **RMB 1.6 million** for the six months ended June 30, 2024, to a loss of **RMB 7.1 million** for the six months ended June 30, 2025, primarily due to unfavorable exchange rate fluctuations during the reporting period[53](index=53&type=chunk)[130](index=130&type=chunk) [Loss Before Tax and Finance Costs](index=38&type=section&id=Loss%20Before%20Tax%20and%20Finance%20Costs) The company's loss before tax was influenced by depreciation, amortization, listing expenses, auditor's remuneration, short-term lease payments, and staff costs, including share-based payments, while finance costs were minimal, primarily from lease liabilities Components of Loss Before Tax | Expense Category | Six Months Ended June 30 (RMB '000) | | :--- | :--- | | Depreciation of property, plant and equipment | 148 | | Depreciation of right-of-use assets | 1,182 | | Amortization of intangible assets | 29 | | Listing expenses | 9,554 | | Auditor's remuneration | 1,228 | | Staff costs (including emoluments of directors, supervisors and chief executive) | 66,297 | | Of which: Share-based payment expenses | 34,305 | Finance Costs | Metric | Six Months Ended June 30 (RMB '000) | | :--- | :--- | | 2025 | 39 | | 2024 | 90 | - Finance costs represent interest on lease liabilities, amounting to **RMB 39 thousand** for the six months ended June 30, 2025[133](index=133&type=chunk) [Income Tax](index=39&type=section&id=Income%20Tax) Group entities pay income tax based on profits in their respective jurisdictions; no income tax in Cayman Islands and BVI, no profit tax provision in Hong Kong and Taiwan due to no assessable profits, and mainland China subsidiaries pay 25% corporate income tax with a 200% super deduction for qualified R&D expenses - Under current laws in the Cayman Islands and British Virgin Islands, the company and its BVI-incorporated subsidiaries are not subject to income or capital gains tax[135](index=135&type=chunk)[136](index=136&type=chunk) - No Hong Kong and Taiwan profits tax provision has been made as the Group did not generate any assessable profits in Hong Kong and Taiwan for the six months ended June 30, 2025[137](index=137&type=chunk)[139](index=139&type=chunk) - Subsidiaries operating in mainland China are subject to corporate income tax at a rate of **25%** on their taxable income and enjoy a **200% super deduction** for qualified research and development expenses[138](index=138&type=chunk) [Dividends and Loss Per Share](index=40&type=section&id=Dividends%20and%20Loss%20Per%20Share) For the six months ended June 30, 2025, the company neither paid nor declared any dividends, and basic and diluted loss per share expanded to RMB 1.18 from RMB 0.89 in the prior year - For the six months ended June 30, 2025, the company neither paid nor declared any dividends[140](index=140&type=chunk) Loss Per Share (Basic and Diluted) | Metric | Six Months Ended June 30 | | :--- | :--- | | 2025 (RMB '000) | (118,020) | | 2024 (RMB '000) | (83,471) | | Loss per share (basic and diluted) (RMB) | (1.18) | | 2024 (RMB) | (0.89) | - The weighted average number of ordinary shares outstanding during the period used in calculating basic and diluted loss per share was **100,052,220 shares** (2024: **93,636,364 shares**)[142](index=142&type=chunk) [Prepayments and Receivables](index=41&type=section&id=Prepayments%20and%20Receivables) As of June 30, 2025, non-current prepayments and other receivables totaled RMB 22,770 thousand, mainly comprising recoverable VAT and lease deposits, while current prepayments and other receivables totaled RMB 8,611 thousand, primarily for R&D services and accrued bank interest Prepayments and Other Receivables | Category | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Non-current: | 22,770 | 20,847 | | Current: | 8,611 | 11,184 | - Non-current prepayments and other receivables primarily include recoverable VAT of **RMB 22,455 thousand** and lease deposits of **RMB 315 thousand**[143](index=143&type=chunk) - Current prepayments and other receivables primarily include prepayments for research and development services of **RMB 3,537 thousand** and accrued bank interest of **RMB 2,470 thousand**[143](index=143&type=chunk) [Cash and Cash Equivalents](index=42&type=section&id=Cash%20and%20Cash%20Equivalents) As of June 30, 2025, cash and bank balances totaled RMB 805,909 thousand, primarily denominated in HKD (RMB 599,349 thousand) and RMB (RMB 166,299 thousand) Cash and Cash Equivalents by Currency | Currency | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | RMB | 166,299 | 138,106 | | USD | 39,206 | 62,258 | | NTD | 1,055 | 2,086 | | HKD | 599,349 | 1,137 | | **Total** | **805,909** | **203,587** | [Trade and Other Payables](index=42&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, trade and other payables totaled RMB 31,755 thousand, mainly comprising accrued R&D service expenses, salaries, and discretionary bonuses, with most trade payables to related parties due within three months Trade and Other Payables | Category | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade payables | 239 | 835 | | Accrued research and development service expenses | 20,653 | 9,316 | | Salaries and discretionary bonuses payable | 6,513 | 12,100 | | Other payables | 3,696 | 4,792 | | Accrued listing expenses | – | 9,075 | | Other taxes payable | 654 | 2,670 | | **Total** | **31,755** | **38,788** | - An aging analysis of trade payables and trade payables to related parties at the end of the reporting period shows that most are due within **three months**[145](index=145&type=chunk) [Share Capital and Treasury Shares](index=43&type=section&id=Share%20Capital%20and%20Treasury%20Shares) As of June 30, 2025, issued and fully paid share capital comprised 113,926,864 ordinary shares totaling RMB 78 thousand, an increase from year-end 2024 due to 11,385,000 ordinary shares issued in the IPO, with 8,905,500 treasury shares Issued and Fully Paid Share Capital | Metric | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | 113,926,864 (2024: 102,976,864) ordinary shares of US$0.0001 each | 78 | 70 | - Shares issued on initial public offering amounted to **11,385,000 ordinary shares**, with gross proceeds of **HK$783,288,000** (equivalent to **RMB 723,210,000**)[147](index=147&type=chunk) Treasury Shares | Metric | Number of Shares | | :--- | :--- | | As of June 30, 2025 | 8,905,500 | [Commitments and Contingent Liabilities](index=45&type=section&id=Commitments%20and%20Contingent%20Liabilities) As of the end of the reporting period, the Group had no material contractual commitments - As of the end of the reporting period, the Group had no material contractual commitments[148](index=148&type=chunk) [Related Party Transactions](index=45&type=section&id=Related%20Party%20Transactions) During the reporting period, the Group engaged in purchase transactions for goods and services with Ascendis Pharma and its subsidiaries, with amounts due to related parties of RMB 4,857 thousand and advances to related parties (current) of RMB 54,734 thousand as of June 30, 2025 Transactions with Related Parties | Type of Transaction | Six Months Ended June 30 (RMB '000) | | :--- | :--- | | Purchases of goods 2025 | 1,781 | | Purchases of goods 2024 | 1,664 | | Purchases of services 2025 | 6,872 | | Purchases of services 2024 | 9,084 | Outstanding Balances with Related Parties | Category | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Amounts due to related parties | 4,857 | 11,403 | | Advances to related parties (current) | 54,734 | 7,802 | | Advances to related parties (non-current) | – | 39,193 | - Advances to related parties relate to prepayments for purchases of goods or services, are unsecured, and non-interest bearing[153](index=153&type=chunk) [Events After Reporting Period and Approval of Financial Statements](index=47&type=section&id=Events%20After%20Reporting%20Period%20and%20Approval%20of%20Financial%20Statements) No significant events occurred after the reporting period, other than those disclosed in this interim report, and the financial statements were approved and authorized for issue by the Board on August 27, 2025 - Other than those disclosed in this interim report, no significant events occurred after the reporting period[154](index=154&type=chunk) - The financial statements were approved and authorized for issue by the Board of Directors on **August 27, 2025**[155](index=155&type=chunk) [Definitions and Glossary](index=48&type=section&id=Definitions%20and%20Glossary) This section provides definitions for key terms and abbreviations used in the report, covering company, product, clinical trial stages, regulatory bodies, financial concepts, and other relevant industry terminology to ensure clear understanding - 'Achondroplasia' refers to a form of short-limbed dwarfism characterized by abnormal bone growth, where cartilage (especially in the long bones of the arms and legs) fails to convert into bone[156](index=156&type=chunk) - 'BLA' refers to a Biologics License Application, used to seek regulatory approval for the marketing and commercialization of a biologic product[156](index=156&type=chunk) - 'NMPA' refers to the National Medical Products Administration, a direct agency of the State Administration for Market Regulation, primarily responsible for the approval of INDs and NDAs[163](index=163&type=chunk)

Financial Performance - Revenue for the six months ended June 30, 2025, was RMB 2,025,041, an increase of 22.7% compared to RMB 1,650,407 for the same period in 2024[13] - Gross profit for the reporting period was RMB 455,076, reflecting a 7.9% increase from RMB 421,745 in the previous year[13] - Profit for the reporting period increased by 12.2% to RMB 305,562, up from RMB 272,347 in the corresponding period of 2024[13] - Basic earnings per share rose to 1.08 from 0.96, marking a significant increase in shareholder value[13] - The Group's total revenue increased by 22.7% to RMB2,025.0 million in the first half of 2025[43] - Total property management services revenue for the six months ended June 30, 2025, reached RMB 1,158,370,000, a 28% increase from RMB 905,335,000 in the same period of 2024[66] - Residential property management revenue was RMB 914.87 million for the first half of 2025, compared to RMB 689.43 million in 2024, reflecting a growth of approximately 32.7%[64] - Non-residential property management revenue increased to RMB 241.86 million in the first half of 2025, up from RMB 212.83 million in 2024[64] Assets and Liabilities - Total assets as of June 30, 2025, amounted to RMB 4,984,824, compared to RMB 4,258,607 at the end of 2024[16] - Current assets increased to RMB 4,448,188 from RMB 3,081,958, indicating improved liquidity[16] - The current ratio improved to 1.35 from 1.16, suggesting a stronger short-term financial position[16] - Total equity attributable to equity shareholders increased to RMB 1,593,034 from RMB 1,528,960, indicating growth in shareholder equity[16] - As of June 30, 2025, the Group's contract liabilities amounted to RMB1,840.0 million, an increase of 18.3% compared to RMB1,555.4 million as of December 31, 2024[125] - Trade and other receivables rose to RMB857.9 million, a 45.4% increase from RMB590.2 million as of December 31, 2024, due to business scale expansion[136] - Trade and other payables increased by 14.2% to RMB1,152.4 million as of June 30, 2025, compared to RMB1,009.0 million as of December 31, 2024[137] Operational Metrics - In the first half of 2025, the Group achieved a total managed area of 75.1 million sq.m., representing a year-on-year increase of 19.0%[29] - The contracted management area exceeded 96.4 million sq.m., reflecting a year-on-year growth of 7.1%[29] - The average property management fee for 10 projects increased by 14.1% due to service upgrades, with a renewal rate for mature projects reaching 100%[24][26] - The number of projects managed increased to 470 in the first half of 2025, up from 398 in the same period of 2024[64] - The addition of contracted GFA was 4,179 thousand sq.m. in the first half of 2025, while the GFA under management increased by 7,664 thousand sq.m.[61] Revenue Sources - Revenue from furnishing services increased by 34.4% year-on-year, while interior design revenue surged by 502.8%[31][32] - The Group's 5S value-added service system generated revenue of RMB652.5 million, marking a year-on-year growth of 32.0%[30][32] - Contracted sales amount for Youjia's second-hand house agency reached approximately RMB853 million, with a year-on-year growth of 20.1% in sales amount and 102.0% in the number of units sold[30][32] - Third-party revenue contribution grew by 26.8% year-on-year, with 55.5% of the GFA under management coming from independent third parties[27] Cost and Expenses - Cost of sales increased by 27.8% from RMB1,228.7 million for the six months ended 30 June 2024 to RMB1,570.0 million for the six months ended 30 June 2025[102] - Selling and marketing expenses increased by 5.6% from RMB10.7 million for the six months ended 30 June 2024 to RMB11.3 million for the six months ended 30 June 2025[103] - Administrative expenses decreased by 6.6% from RMB49.9 million for the six months ended 30 June 2024 to RMB46.6 million for the six months ended 30 June 2025[107] Corporate Governance - The Company has complied with all applicable provisions of the Corporate Governance Code, except for the combined roles of chairman and chief executive officer held by Mr. Yu Zhongxiang[162] - The Board declared an interim dividend of HK$0.826 per share for the six months ended 30 June 2025, amounting to approximately HK$242.1 million, representing a payout ratio of about 70% of net profit attributable to equity shareholders[158] - The Company is committed to maintaining high standards of corporate governance to enhance corporate value and accountability[162] - The Board will continue to review the separation of the roles of chairman and chief executive officer as appropriate[162] Employee and Workforce - The Group employed a total of 15,091 employees as of June 30, 2025, up from 14,022 employees as of December 31, 2024, with staff costs amounting to RMB703.2 million during the Reporting Period[142] Review and Compliance - The interim financial report as of June 30, 2025, is prepared in accordance with International Accounting Standard 34[200] - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410[198] - The financial report is deemed reliable for stakeholders based on the review findings[200]

[Supplementary Announcement Overview](index=1&type=section&id=Supplementary%20Announcement%20Overview) This section provides an overview of the supplementary announcement, detailing its purpose and key additional information [Background and Purpose of the Announcement](index=1&type=section&id=Background%20and%20Purpose%20of%20the%20Announcement) This announcement supplements Xuanwu Cloud Technology Holdings Limited's 2024 annual report, providing additional details while affirming other report information remains unchanged - This announcement supplements Xuanwu Cloud Technology Holdings Limited's 2024 annual report, originally published on March 26, 2025, and re-issued on April 23, 2025[2](index=2&type=chunk) - The supplementary information complements the annual report without altering its other contents, which remain unchanged except as disclosed herein[3](index=3&type=chunk) [Supplementary Explanation on Treasury Shares Usage](index=1&type=section&id=Supplementary%20Explanation%20on%20Treasury%20Shares%20Usage) The company provides additional details on the 3,075,000 treasury shares, outlining their potential uses to enhance capital structure management flexibility - The company holds **3,075,000 treasury shares**[3](index=3&type=chunk) - Potential uses for treasury shares include, but are not limited to, funding the 2022 Restricted Share Award Scheme, future resale and transfer, and other purposes permitted by the Articles of Association and applicable Cayman Islands law[3](index=3&type=chunk) - Holding treasury shares provides the company with greater flexibility in managing its capital structure without issuing new shares[3](index=3&type=chunk) [Board of Directors Information](index=1&type=section&id=Board%20of%20Directors%20Information) This section lists the composition of the Board of Directors as of September 19, 2025, including executive and independent non-executive directors - As of September 19, 2025, the Board of Directors comprises[5](index=5&type=chunk) - Executive Directors: Mr. Chen Yonghui (Chairman, Chief Executive Officer), Mr. Huang Fangjie, Mr. Li Hairong, and Mr. Guo Haiqiu[4](index=4&type=chunk)[5](index=5&type=chunk) - Independent Non-Executive Directors: Mr. Du Jianqing, Ms. Wu Ruifeng, and Professor Wu Jintao[5](index=5&type=chunk)

[CORPORATE INFORMATION](index=2&type=section&id=CORPORATE%20INFORMATION) This section provides essential corporate details, including board composition, contact information, and key personnel changes [Board and Committees](index=2&type=section&id=Board%20and%20Committees) The company's Board of Directors comprises executive, non-executive, and independent non-executive directors, with audit, remuneration, and nomination committees established, and notes a post-reporting period change in leadership - The Board comprises two executive directors, three non-executive directors, and three independent non-executive directors[54](index=54&type=chunk) - Mr. Dong Ping resigned as Chairman and Executive Director on July 27, 2025, and Ms. Hu Hui was appointed as an Executive Director on the same day[2](index=2&type=chunk)[3](index=3&type=chunk)[101](index=101&type=chunk) [Company Details and Contact](index=3&type=section&id=Company%20Details%20and%20Contact) This section outlines the company's registered office, Hong Kong principal place of business, share registrar, stock code (1003), official website, and investor relations contacts - The company's registered office is in Bermuda, with its Hong Kong principal place of business in Far East Finance Centre, Admiralty, Hong Kong[5](index=5&type=chunk)[6](index=6&type=chunk) - The company's stock code is **1003**, and it provides multiple official websites and investor relations contact emails[6](index=6&type=chunk)[7](index=7&type=chunk) [MANAGEMENT DISCUSSION AND ANALYSIS](index=4&type=section&id=MANAGEMENT%20DISCUSSION%20AND%20ANALYSIS) This section reviews the company's business operations and financial performance for the period, highlighting market challenges and strategic responses [BUSINESS AND OPERATION REVIEW](index=4&type=section&id=BUSINESS%20AND%20OPERATION%20REVIEW) The Chinese film market experienced continued adjustments and weak box office performance in the first half of 2025, leading the Group to adjust its film release strategy and enrich content - The Chinese film market remained sluggish in the first half of 2025, with weaker-than-expected recovery and high vacancy rates during off-peak hours[8](index=8&type=chunk)[12](index=12&type=chunk) - The Group flexibly adjusted its film distribution pace and maintained **ample film and television content reserves** to address market challenges[9](index=9&type=chunk)[12](index=12&type=chunk) - Films released during the period included "Caught in the Web of Love" directed by Peter Chan and "The Stage" directed by Chen Peisi, both becoming popular summer blockbusters[9](index=9&type=chunk)[12](index=12&type=chunk) - The online video platform "Huanxi Premiere" added several global film and television titles, including "Cotton Tail," "Little Gang," and "Eiffel Tower"[11](index=11&type=chunk)[14](index=14&type=chunk) [FINANCIAL REVIEW](index=5&type=section&id=FINANCIAL%20REVIEW) For the six months ended June 30, 2025, the Group reported revenue and net film investment income of HK$179.94 million and a net loss of HK$102.232 million, primarily due to intense market competition and lower-than-expected box office performance - For the six months ended June 30, 2025, the Group recorded a **net loss of HK$102.232 million**, an increase from HK$89.049 million in the prior year period[15](index=15&type=chunk)[19](index=19&type=chunk)[107](index=107&type=chunk) - Revenue and net film investment income amounted to **HK$179.94 million**, an increase from HK$115.209 million in the prior year period[15](index=15&type=chunk)[19](index=19&type=chunk)[107](index=107&type=chunk) - The loss was primarily attributable to intense industry competition, a weak film market, and lower-than-expected box office performance for films released during the period[16](index=16&type=chunk)[19](index=19&type=chunk) 2025 Key Financial Data Comparison for H1 (HK$ thousand) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue and net film investment income | 179,940 | 115,209 | | Net loss | (102,232) | (89,049) | | Loss per share (HK$) | (0.03) | (0.02) | | Net asset value per share (HK$) | 0.30 (as of June 30, 2025) | 0.32 (as of December 31, 2024) | [LIQUIDITY AND FINANCIAL RESOURCES](index=6&type=section&id=LIQUIDITY%20AND%20FINANCIAL%20RESOURCES) As of June 30, 2025, the Group's net current assets, cash and cash equivalents, current ratio, and capital-to-debt ratio all decreased slightly, yet its overall financial position remains stable Liquidity and Financial Resources Overview as of June 30, 2025 (HK$ thousand) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net current assets | 364,219 | 473,962 | | Cash and cash equivalents | 35,741 | 144,987 | | Current ratio | 1.50 | 1.65 | | Total equity | 1,084,378 | 1,154,415 | | Borrowings | 29,544 | 42,440 | | Capital to debt ratio | 0.03 | 0.04 | [CAPITAL STRUCTURE](index=6&type=section&id=CAPITAL%20STRUCTURE) As of June 30, 2025, the company's share capital was approximately HK$36.565 million, consisting of 3,656,472,362 ordinary shares with a par value of HK$0.01 each, with no new shares issued for fundraising during the reporting period - As of June 30, 2025, the company's share capital was approximately **HK$36.565 million**, comprising **3,656,472,362** issued ordinary shares with a par value of **HK$0.01** each[21](index=21&type=chunk)[24](index=24&type=chunk) - During the reporting period, the company did not undertake any fundraising activities through the issuance of new shares[21](index=21&type=chunk)[24](index=24&type=chunk) [Other Financial and Operational Aspects](index=6&type=section&id=Other%20Financial%20and%20Operational%20Aspects) This section provides updates on the Group's asset charges, foreign exchange exposure, risk management, contingent liabilities, capital commitments, material investments, acquisitions, disposals, and employee remuneration policies [CHARGES ON ASSETS](index=6&type=section&id=CHARGES%20ON%20ASSETS) As of June 30, 2025, the Group had no assets pledged, consistent with the situation on December 31, 2024 - As of June 30, 2025, the Group had **no pledged assets**[22](index=22&type=chunk)[25](index=25&type=chunk) [FOREIGN EXCHANGE EXPOSURE](index=7&type=section&id=FOREIGN%20EXCHANGE%20EXPOSURE) The Group's cash flows and assets are primarily denominated in HKD and RMB, but foreign currencies are required for some investments and collaborations, necessitating continuous monitoring to mitigate exchange rate risks - The cash flows, cash held, and assets of the Group's operations are primarily denominated in **Hong Kong Dollars and Renminbi**[26](index=26&type=chunk)[31](index=31&type=chunk) - Many investment opportunities and collaboration plans with film producers in mainland China and overseas still require the use of foreign currencies[26](index=26&type=chunk)[31](index=31&type=chunk) - The Group will continue to closely monitor capital requirements and strive to mitigate any adverse effects of exchange rate fluctuations on its overall financial position and reduce financial risks[26](index=26&type=chunk)[31](index=31&type=chunk) [RISK MANAGEMENT](index=7&type=section&id=RISK%20MANAGEMENT) During the reporting period, the Group regularly reviewed its risk and credit control systems to enhance overall governance and reduce credit risk, with no significant changes to its risk management policies since the last year-end - The Group regularly reviews the risk and credit control systems of its profit centers to improve overall control and **reduce credit risk**[27](index=27&type=chunk)[32](index=32&type=chunk) - There have been **no significant changes** to the Group's risk management policies since the last year-end date[27](index=27&type=chunk)[32](index=32&type=chunk) [CONTINGENT LIABILITIES](index=7&type=section&id=CONTINGENT%20LIABILITIES) As of June 30, 2025, the Group had no material contingent liabilities, consistent with the situation on December 31, 2024 - As of June 30, 2025, the Group had **no material contingent liabilities**[28](index=28&type=chunk)[33](index=33&type=chunk) [CAPITAL COMMITMENT](index=7&type=section&id=CAPITAL%20COMMITMENT) Details of the Group's capital commitments as of June 30, 2025, are provided in Note 23 to the unaudited condensed consolidated interim financial information - Details of the Group's commitments as of June 30, 2025, are set out in Note 23 to the unaudited condensed consolidated interim financial information[29](index=29&type=chunk)[34](index=34&type=chunk) Film and TV Programme Rights Acquisition and Production Commitments as of June 30, 2025 (HK$ thousand) | Commitment Type | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Film and TV programme rights acquisition and production commitments | 149,219 | 144,456 | [MATERIAL INVESTMENTS](index=7&type=section&id=MATERIAL%20INVESTMENTS) Apart from film and TV programme rights detailed in Note 16 of the financial information, the Group had no other material investments during the reporting period - Save for film and TV programme rights as set out in Note 16 to the unaudited condensed consolidated interim financial information, the Group had **no material investments** during the reporting period[30](index=30&type=chunk)[35](index=35&type=chunk) [MATERIAL ACQUISITIONS AND DISPOSALS OF SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES](index=8&type=section&id=MATERIAL%20ACQUISITIONS%20AND%20DISPOSALS%20OF%20SUBSIDIARIES%2C%20ASSOCIATES%20AND%20JOINT%20VENTURES) For the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, the Group had **no material acquisitions or disposals** of subsidiaries, associates, and joint ventures[36](index=36&type=chunk)[40](index=40&type=chunk) [FUTURE PLANS FOR MATERIAL INVESTMENTS](index=8&type=section&id=FUTURE%20PLANS%20FOR%20MATERIAL%20INVESTMENTS) The Group is actively seeking investment opportunities in media and entertainment-related businesses to broaden its revenue streams and development prospects - The Group is seeking investment opportunities (including but not limited to media and entertainment-related businesses) to **broaden its revenue streams and prospects**[37](index=37&type=chunk)[41](index=41&type=chunk) [EMPLOYEES AND REMUNERATION POLICIES](index=8&type=section&id=EMPLOYEES%20AND%20REMUNERATION%20POLICIES) As of June 30, 2025, the Group employed 85 full-time and 2 part-time staff, with remuneration policies based on job value, performance, and industry trends, providing MPF for Hong Kong staff and national retirement benefits for China-based staff Employee Count Comparison as of June 30, 2025 | Employee Type | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Full-time employees | 85 | 85 | | Part-time employees | 2 | 2 | - The Group has established a sound remuneration management and incentive mechanism, with employee remuneration determined based on **job value, work performance, and industry trends**[38](index=38&type=chunk)[42](index=42&type=chunk) - The Group arranges for all eligible Hong Kong employees to participate in the **Mandatory Provident Fund Scheme**, while employees of its PRC subsidiaries are members of a state-managed retirement benefit scheme operated by the PRC government[39](index=39&type=chunk)[42](index=42&type=chunk) [PROSPECTS](index=9&type=section&id=PROSPECTS) The Chinese film industry faces both opportunities and challenges, with an overall stable and positive trend, driven by government support, cinema upgrades, and consumption vouchers, as the Group continues its "content is king" strategy and diversified film projects - The Chinese film industry faces both opportunities and challenges, with an overall trend expected to be **stable and positive**[43](index=43&type=chunk)[46](index=46&type=chunk) - The government has introduced special funds for quality films, innovative technology incentive policies, promoted cinema equipment upgrades, and issued film consumption vouchers, injecting momentum into the industry from both supply and demand sides[43](index=43&type=chunk)[46](index=46&type=chunk) - The Group's invested film "The Stage" garnered critical acclaim and box office success during the summer season, with its revenue to be recognized in the **second half of 2025**[44](index=44&type=chunk)[46](index=46&type=chunk) - The Group will continue to develop a **diversified portfolio of film projects**, including producing "Alone on Stage" and "In the Name of Father," investing in "The Mermaid" and "Ruyi Hotel," and planning another collaboration with Zhang Yimou[45](index=45&type=chunk)[47](index=47&type=chunk) - The "Huanxi Premiere" platform will continue to introduce global film and television masterpieces, including "The Rental," "The Woman Who Ran," "Inland," and "The Forger," strengthening its resource layout[48](index=48&type=chunk)[50](index=50&type=chunk) - The Group will continue to advance its **"content is king" strategy**, focusing on high-quality and diversified film and television works to consolidate its industry leadership and create long-term value for shareholders[49](index=49&type=chunk)[51](index=51&type=chunk) [CORPORATE GOVERNANCE](index=11&type=section&id=CORPORATE%20GOVERNANCE) This section details the company's adherence to corporate governance principles and codes, including board composition and securities transaction guidelines [CORPORATE GOVERNANCE PRACTICES](index=11&type=section&id=CORPORATE%20GOVERNANCE%20PRACTICES) For the six months ended June 30, 2025, the company consistently applied and complied with the principles and provisions of the Corporate Governance Code set out in Appendix C1 of the HKEX Listing Rules - During the reporting period, the company consistently applied and complied with the principles and provisions of the **Corporate Governance Code** set out in Appendix C1 of the HKEX Listing Rules[52](index=52&type=chunk)[56](index=56&type=chunk) [CODE FOR SECURITIES TRANSACTIONS](index=11&type=section&id=CODE%20FOR%20SECURITIES%20TRANSACTIONS) The company adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all directors confirmed full compliance during the reporting period - The company has adopted the **Model Code for Securities Transactions by Directors of Listed Issuers** as set out in Appendix C3 of the Listing Rules[53](index=53&type=chunk)[57](index=57&type=chunk) - All directors confirmed full compliance with the Model Code throughout the reporting period[53](index=53&type=chunk)[57](index=57&type=chunk) [BOARD COMPOSITION](index=11&type=section&id=BOARD%20COMPOSITION) The Board currently consists of two executive, three non-executive, and three independent non-executive directors, all possessing diverse industry expertise and experience - The Board currently comprises **two executive directors, three non-executive directors, and three independent non-executive directors**[54](index=54&type=chunk)[58](index=58&type=chunk) - All directors are highly capable executives with diverse industry expertise, bringing various skills and experience to the Group[54](index=54&type=chunk)[58](index=58&type=chunk) [CHANGE IN INFORMATION OF DIRECTORS](index=11&type=section&id=CHANGE%20IN%20INFORMATION%20OF%20DIRECTORS) Since the date of the 2024 annual report, there have been no changes in directors' information requiring disclosure under Listing Rule 13.51B(1) - Since the date of the 2024 annual report, there have been **no changes in directors' information** requiring disclosure under Listing Rule 13.51B(1)[55](index=55&type=chunk)[59](index=59&type=chunk) [OTHER INFORMATION](index=12&type=section&id=OTHER%20INFORMATION) This section covers various additional disclosures, including interim dividends, directors' and substantial shareholders' interests, share options, and post-reporting period events [INTERIM DIVIDEND](index=12&type=section&id=INTERIM%20DIVIDEND) The Board resolved not to declare an interim dividend for the six months ended June 30, 2025, consistent with the prior year period - The Board resolved **not to declare an interim dividend** for the six months ended June 30, 2025[60](index=60&type=chunk)[63](index=63&type=chunk)[167](index=167&type=chunk)[168](index=168&type=chunk) [DIRECTORS' INTERESTS IN SECURITIES](index=12&type=section&id=DIRECTORS%27%20INTERESTS%20IN%20SECURITIES) As of June 30, 2025, the company's directors and chief executive held long positions in ordinary shares and related shares, with Mr. Dong Ping, Mr. Ning Hao, Mr. Xu Zheng, and their associated companies collectively holding approximately 39.91% Directors' Long Positions in Ordinary Shares and Related Shares as of June 30, 2025 | Name of Director | Corporate Interests (shares) | Personal Interests (shares) | Total (shares) | Approximate % of Issued Shares | | :--- | :--- | :--- | :--- | :--- | | Mr. Dong Ping | 1,416,094,354 | 43,250,000 | 1,459,344,354 | 39.91% | | Mr. Ning Hao | 1,416,094,354 | 43,250,000 | 1,459,344,354 | 39.91% | | Mr. Xu Zheng | 1,416,094,354 | 43,250,000 | 1,459,344,354 | 39.91% | | Mr. Li Xiaolong | 15,060,000 | – | 15,060,000 | 0.41% | | Mr. Wang Hong | – | 200,000 | 200,000 | 0.01% | - Mr. Dong Ping resigned as Executive Director and Chairman on **July 27, 2025**[70](index=70&type=chunk) - Mr. Dong Ping, Mr. Ning Hao, Mr. Xu Zheng, and their respective controlled companies are deemed to have a **joint interest** due to a shareholders' agreement[70](index=70&type=chunk) [SUBSTANTIAL SHAREHOLDERS' INTERESTS](index=14&type=section&id=SUBSTANTIAL%20SHAREHOLDERS%27%20INTERESTS) As of June 30, 2025, substantial shareholders, excluding directors' interests, included Mr. Dong Ping, Newwood Investments Limited, Mr. Ning Hao, Pacific Wits Limited, Mr. Xu Zheng, Tairong Holdings Limited, Bilibili Inc., FMR LLC., and Maoyan Entertainment, with Mr. Dong Ping, Mr. Ning Hao, Mr. Xu Zheng, and their associated companies holding approximately 39.91% Overview of Substantial Shareholders' Interests as of June 30, 2025 | Name of Shareholder | Capacity | Number of Ordinary Shares Held | Approximate % of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Dong Ping | Beneficial owner, interests in controlled corporations and parties to agreement | 1,459,344,354 | 39.91% | | Newwood Investments Limited | Beneficial owner and party to agreement | 1,459,344,354 | 39.91% | | Mr. Ning Hao | Interests in controlled corporations and party to agreement | 1,459,344,354 | 39.91% | | Pacific Wits Limited | Beneficial owner and party to agreement | 1,459,344,354 | 39.91% | | Mr. Xu Zheng | Interests in controlled corporations and party to agreement | 1,459,344,354 | 39.91% | | Tairong Holdings Limited | Beneficial owner and party to agreement | 1,459,344,354 | 39.91% | | Bilibili Inc. | Beneficial owner | 328,366,954 | 8.98% | | FMR LLC. | Beneficial owner | 210,352,773 | 5.75% | | Maoyan Entertainment | Beneficial owner | 208,430,000 | 5.70% | - Mr. Dong Ping, Mr. Ning Hao, Mr. Xu Zheng, and their respective controlled companies (Newwood, Pacific Wits, Tairong) are deemed to have a **joint interest** due to a shareholders' agreement[78](index=78&type=chunk) - The disclosure dates for interests are **December 31, 2024, for Bilibili Inc., July 4, 2025, for FMR LLC., and October 14, 2022, for Maoyan Entertainment**[78](index=78&type=chunk) [SHARE OPTIONS](index=17&type=section&id=SHARE%20OPTIONS) The 2014 Share Option Scheme expired on June 17, 2024, with no options granted, cancelled, exercised, or lapsed during the reporting period; a new 2024 scheme was adopted on June 25, 2024, to incentivize eligible participants, with an authorized limit of 10% of issued shares and a vesting period of no less than 12 months - The 2014 Share Option Scheme expired on **June 17, 2024**, and as of June 30, 2025, no share options were available for grant or outstanding under this scheme[79](index=79&type=chunk)[80](index=80&type=chunk)[82](index=82&type=chunk) - The company adopted a new **2024 Share Option Scheme** on **June 25, 2024**, valid for ten years, aiming to incentivize and reward eligible participants who contribute to the Group's growth[81](index=81&type=chunk)[83](index=83&type=chunk) - The authorized limit for the 2024 Share Option Scheme is **10% of issued shares (365,647,236 shares)**, with a sub-limit of **1% (36,564,723 options)** for service providers[84](index=84&type=chunk)[93](index=93&type=chunk)[94](index=94&type=chunk) - The exercise price of share options shall not be less than the highest of the closing price on the offer date, the average closing price for the preceding five days, or the par value of the shares, with a **vesting period of no less than 12 months**[85](index=85&type=chunk)[87](index=87&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk) - The Board may, at its discretion, set **performance targets and clawback mechanisms**[88](index=88&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk)[97](index=97&type=chunk)[98](index=98&type=chunk) [PURCHASE, SALE OR REDEMPTION OF THE COMPANY'S LISTED SECURITIES](index=19&type=section&id=PURCHASE%2C%20SALE%20OR%20REDEMPTION%20OF%20THE%20COMPANY%27S%20LISTED%20SECURITIES) For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - 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**[96](index=96&type=chunk)[99](index=99&type=chunk) [SUFFICIENCY OF PUBLIC FLOAT](index=20&type=section&id=SUFFICIENCY%20OF%20PUBLIC%20FLOAT) As of the report date, based on publicly available information and directors' knowledge, the company maintained the sufficient public float required by the Listing Rules - As of the date of this report, based on publicly available information and to the best knowledge of the directors, the company maintained the **sufficient public float** required by the Listing Rules[100](index=100&type=chunk)[103](index=103&type=chunk) [EVENT AFTER THE REPORTING PERIOD](index=20&type=section&id=EVENT%20AFTER%20THE%20REPORTING%20PERIOD) Mr. Dong Ping resigned as Executive Director and Chairman on July 27, 2025, and Ms. Hu Hui was appointed as an Executive Director, effective the same day - Mr. Dong Ping resigned as Executive Director and Chairman of the company, effective **July 27, 2025**[101](index=101&type=chunk)[104](index=104&type=chunk)[216](index=216&type=chunk)[218](index=218&type=chunk) - The Board appointed Ms. Hu Hui as an Executive Director, effective **July 27, 2025**[101](index=101&type=chunk)[104](index=104&type=chunk)[216](index=216&type=chunk)[218](index=218&type=chunk) [REVIEW OF INTERIM RESULTS](index=20&type=section&id=REVIEW%20OF%20INTERIM%20RESULTS) The company's audit committee, in conjunction with management, reviewed and expressed satisfaction with the accounting principles, practices, and the unaudited condensed consolidated interim financial information for the six months ended June 30, 2025 - The company's Audit Committee, in conjunction with management, reviewed the accounting principles and practices adopted by the Group, as well as the unaudited condensed consolidated interim financial information for the six months ended June 30, 2025[102](index=102&type=chunk)[105](index=105&type=chunk) - The Committee expressed **satisfaction with the review**, and the Board was also satisfied with the Committee's report[102](index=102&type=chunk)[105](index=105&type=chunk) [UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION](index=21&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20INTERIM%20FINANCIAL%20INFORMATION) This section presents the Group's unaudited condensed consolidated interim financial statements, including the statement of profit or loss, financial position, changes in equity, cash flows, and detailed notes [UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME](index=21&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20PROFIT%20OR%20LOSS%20AND%20OTHER%20COMPREHENSIVE%20INCOME) For the six months ended June 30, 2025, the Group reported revenue and net film investment income of HK$179.94 million, a gross loss of HK$17.567 million, an operating loss of HK$100.664 million, and a loss for the period of HK$102.232 million, with a total comprehensive loss of HK$70.037 million H1 2025 Profit or Loss and Other Comprehensive Income Overview (HK$ thousand) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue and net film investment income | 179,940 | 115,209 | | Cost of revenue | (197,507) | (185,555) | | Gross loss | (17,567) | (70,346) | | Operating loss | (100,664) | (90,282) | | Loss before tax | (101,029) | (89,104) | | Loss for the period | (102,232) | (89,049) | | Total comprehensive loss for the period | (70,037) | (122,209) | - Exchange differences had a **positive impact on comprehensive income**, shifting from a loss of **HK$(33,160) thousand** in H1 2024 to a gain of **HK$32,195 thousand** in H1 2025[108](index=108&type=chunk) [UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION](index=23&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20FINANCIAL%20POSITION) As of June 30, 2025, the Group's total assets were HK$1,846.116 million, total equity HK$1,084.378 million, and total liabilities HK$761.738 million, with both current assets and cash and cash equivalents decreasing from year-end 2024 Financial Position Overview as of June 30, 2025 (HK$ thousand) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Non-current assets | 756,818 | 746,833 | | Current assets | 1,089,298 | 1,201,323 | | Total assets | 1,846,116 | 1,948,156 | | Total equity | 1,084,378 | 1,154,415 | | Non-current liabilities | 36,659 | 66,380 | | Current liabilities | 725,079 | 727,361 | | Total liabilities | 761,738 | 793,741 | - Film and TV programme rights within current assets decreased from **HK$928.241 million** to **HK$783.955 million**, and cash and cash equivalents decreased from **HK$144.987 million** to **HK$35.741 million**[110](index=110&type=chunk) - Contract assets significantly increased from **HK$17.344 million** to **HK$139.519 million**[110](index=110&type=chunk) [UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY](index=25&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CHANGES%20IN%20EQUITY) For the six months ended June 30, 2025, total equity attributable to owners decreased from HK$1,154.415 million at the beginning of the period to HK$1,084.378 million at the end, primarily due to a loss for the period of HK$102.232 million, partially offset by other comprehensive income of HK$32.195 million H1 2025 Equity Movement Overview (HK$ thousand) | Metric | January 1, 2025 | Loss for the period | Other comprehensive income | June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | | Share capital | 36,565 | – | – | 36,565 | | Reserves | 1,117,850 | (102,232) | 32,195 | 1,047,813 | | **Total Equity** | **1,154,415** | **(102,232)** | **32,195** | **1,084,378** | - Accumulated losses increased from **HK$(2,301,301) thousand** as of December 31, 2024, to **HK$(2,403,533) thousand** as of June 30, 2025[208](index=208&type=chunk) [UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS](index=26&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CASH%20FLOWS) For the six months ended June 30, 2025, net cash used in operating activities was HK$91.291 million, net cash generated from investing activities was HK$0.239 million, and net cash used in financing activities was HK$20.238 million, resulting in a significant decrease in cash and cash equivalents to HK$35.741 million at period-end H1 2025 Cash Flow Overview (HK$ thousand) | Activity Type | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | (91,291) | (197,296) | | Net cash generated from investing activities | 239 | 895 | | Net cash used in financing activities | (20,238) | (6,798) | | Net decrease in cash and cash equivalents | (111,290) | (203,199) | | Cash and cash equivalents at end of period | 35,741 | 102,223 | - Net cash used in operating activities improved compared to the prior year period, but net cash used in financing activities significantly increased, primarily due to **repayment of borrowings**[115](index=115&type=chunk) [NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION](index=27&type=section&id=NOTES%20TO%20THE%20UNAUDITED%20CONDENSED%20CONSOLIDATED%20INTERIM%20FINANCIAL%20INFORMATION) This section provides detailed notes to the unaudited condensed consolidated interim financial information, covering general information, basis of preparation, accounting policies, judgments and estimates, financial risk management, composition of income and expenses, segment information, taxation, dividends, loss per share, changes in assets and liabilities, receivables and payables, film investment funds from investors, borrowings, share capital, reserves, commitments, and related party disclosures [1 GENERAL INFORMATION](index=27&type=section&id=1%20GENERAL%20INFORMATION) The company, incorporated in Bermuda and listed on the HKEX, primarily engages in media and entertainment, including film and TV programme rights development, investment, and online video platform operations, with financial information presented in HKD - The company is an exempted company incorporated in Bermuda, with its shares listed on the Main Board of the Stock Exchange[117](index=117&type=chunk)[122](index=122&type=chunk) - Primarily engaged in media and entertainment-related businesses, including **film and TV programme rights production and investment**, and operating an online video platform[118](index=118&type=chunk)[122](index=122&type=chunk) - The unaudited condensed consolidated interim financial information is presented in **Hong Kong Dollars** and was approved for issue by the Board on **August 29, 2025**[118](index=118&type=chunk)[119](index=119&type=chunk)[122](index=122&type=chunk)[123](index=123&type=chunk) [2 BASIS OF PREPARATION](index=27&type=section&id=2%20BASIS%20OF%20PREPARATION) The financial information is prepared in accordance with HKAS 34 "Interim Financial Reporting" and Appendix D2 of the Listing Rules, to be read in conjunction with the 2024 annual report, with accounting policies consistent except for new or revised standards having no material impact - This unaudited condensed consolidated interim financial information for the six months ended June 30, 2025, has been prepared in accordance with **Hong Kong Accounting Standard 34 "Interim Financial Reporting"** issued by the HKICPA and the applicable disclosure requirements of Appendix D2 of the Listing Rules[120](index=120&type=chunk)[124](index=124&type=chunk) - The unaudited condensed consolidated interim financial information should be read in conjunction with the **annual report for the year ended December 31, 2024**, prepared in accordance with Hong Kong Financial Reporting Standards[121](index=121&type=chunk)[124](index=124&type=chunk) - The accounting policies adopted are consistent with those applied in the previous financial year and the corresponding interim reporting period, except for the adoption of **new and revised standards**[125](index=125&type=chunk)[129](index=129&type=chunk) [3 ACCOUNTING POLICIES](index=28&type=section&id=3%20ACCOUNTING%20POLICIES) The Group adopted new or revised standards effective for accounting periods beginning on or after January 1, 2025, which had no material impact on the interim financial information, and no new standards not yet effective were early adopted - The Group has adopted new or revised standards, amendments to standards, and interpretations of Hong Kong Financial Reporting Standards that are **effective for accounting periods beginning on or after January 1, 2025**[127](index=127&type=chunk)[130](index=130&type=chunk) - The adoption of these new or revised standards, amendments to standards, and interpretations has had **no material impact** on the unaudited condensed consolidated interim financial information and has not resulted in significant changes to the Group's accounting policies or the amounts reported for the current and prior periods[127](index=127&type=chunk)[130](index=130&type=chunk) [4 JUDGEMENTS AND ESTIMATES](index=28&type=section&id=4%20JUDGEMENTS%20AND%20ESTIMATES) The preparation of interim financial information involves management judgments, estimates, and assumptions, with key sources of estimation uncertainty being the same as those applied in the 2024 annual consolidated financial statements - In preparing the interim financial information, management is required to make **judgments, estimates, and assumptions** that affect the application of accounting policies and the reported amounts of assets, liabilities, income, and expenses[128](index=128&type=chunk)[131](index=131&type=chunk) - The significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the **same as those applied in the Group's consolidated financial statements for the year ended December 31, 2024**[128](index=128&type=chunk)[131](index=131&type=chunk) [5 FINANCIAL RISK MANAGEMENT](index=29&type=section&id=5%20FINANCIAL%20RISK%20MANAGEMENT) The Group is exposed to market risk (including foreign exchange and interest rate risk), credit risk, and liquidity risk, with no changes in risk management policies since December 31, 2024, and fair value measurements using a three-level hierarchy, with film copyright investments classified as Level 3 - The Group's operations are exposed to various financial risks: **market risk (including foreign exchange risk and interest rate risk), credit risk, and liquidity risk**[132](index=132&type=chunk)[135](index=135&type=chunk) - There have been **no changes** to the Group's risk management policies since December 31, 2024[133](index=133&type=chunk)[136](index=136&type=chunk) - Fair value measurements use a **three-level hierarchy**, with film copyright investments classified as **Level 3**, amounting to **HK$147.662 million** as of June 30, 2025[137](index=137&type=chunk)[138](index=138&type=chunk)[142](index=142&type=chunk)[143](index=143&type=chunk)[146](index=146&type=chunk) [6 REVENUE AND FILM INVESTMENT INCOME/(LOSS), NET](index=32&type=section&id=6%20REVENUE%20AND%20FILM%20INVESTMENT%20INCOME%2F%28LOSS%29%2C%20NET) For the six months ended June 30, 2025, the Group's revenue and net film investment income totaled HK$179.94 million, primarily from shared box office revenue and sub-licensing of film and TV programme rights, with a significant increase in contract assets and contract liabilities mainly from joint membership arrangements and sub-licensing prepayments H1 2025 Revenue and Net Film Investment Income Composition (HK$ thousand) | Revenue Source | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Share of box office revenue | 144,518 | 63,374 | | Sub-licensing of film and TV programme rights | 30,926 | 52,489 | | Other media-related revenue | 1,219 | 3,890 | | **Total Revenue** | **176,663** | **119,753** | | Net film investment income/(loss) | 3,277 | (4,544) | | **Total** | **179,940** | **115,209** | - As of June 30, 2025, contract assets (unbilled revenue) increased to **HK$139.519 million** (December 31, 2024: HK$17.344 million)[110](index=110&type=chunk)[150](index=150&type=chunk) - Contract liabilities primarily include **HK$0.766 million** in prepayments for joint membership arrangements and **HK$30.512 million** in prepayments for sub-licensing of film and TV programme rights[151](index=151&type=chunk)[152](index=152&type=chunk) [7 SEGMENT INFORMATION](index=33&type=section&id=7%20SEGMENT%20INFORMATION) The Group's executive directors, as the chief operating decision makers, classify the business into a single reportable segment: film and TV programme rights investment, with operations primarily in China and Hong Kong, and revenue and non-current assets mainly derived from China - The Group's sole reportable segment is **film and TV programme rights investment**[153](index=153&type=chunk)[156](index=156&type=chunk) - The Group's operations are primarily located in **China and Hong Kong**, with revenue and net film investment income/(loss) mainly derived from Chinese customers, and non-current assets also primarily located in China[154](index=154&type=chunk)[156](index=156&type=chunk) [8 OTHER (LOSSES)/GAINS, NET](index=33&type=section&id=8%20OTHER%20%28LOSSES%29%2FGAINS%2C%20NET) For the six months ended June 30, 2025, the Group recorded a net exchange loss of HK$0.8 million, compared to a net exchange gain of HK$1.922 million in the prior year period H1 2025 Other (Losses)/Gains, Net (HK$ thousand) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net exchange loss/gain | (800) | 1,922 | [9 EXPENSES BY NATURE](index=34&type=section&id=9%20EXPENSES%20BY%20NATURE) For the six months ended June 30, 2025, the Group's total costs (cost of revenue, selling and distribution costs, and administrative expenses) decreased to HK$304.619 million from HK$393.018 million in the prior year period, mainly due to a significant reduction in advertising and marketing expenses H1 2025 Expenses by Nature Overview (HK$ thousand) | Expense Category | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Employee benefit expenses (excluding directors' emoluments) | 24,090 | 21,854 | | Directors' emoluments | 7,636 | 7,636 | | Depreciation | 5,378 | 6,930 | | Advertising and marketing expenses | 54,298 | 153,391 | | Amortisation of film and TV programme rights | 197,507 | 185,555 | | **Total Costs** | **304,619** | **393,018** | - Advertising and marketing expenses significantly decreased from **HK$153.391 million** in H1 2024 to **HK$54.298 million** in H1 2025[160](index=160&type=chunk) - Amortisation of film and TV programme rights increased from **HK$185.555 million** to **HK$197.507 million**[160](index=160&type=chunk) [10 INCOME TAX EXPENSE/(CREDIT)](index=34&type=section&id=10%20INCOME%20TAX%20EXPENSE%2F%28CREDIT%29) For the six months ended June 30, 2025, the Group recorded an income tax expense of HK$1.203 million, compared to an income tax credit of HK$0.055 million in the prior year period, with PRC subsidiaries taxed at 25% and a 7% withholding tax on PRC-sourced income, while Hong Kong entities had no provision due to tax losses H1 2025 Income Tax Expense/(Credit) (HK$ thousand) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Current tax | 1,129 | – | | Deferred income tax | 74 | (55) | | **Income tax expense/(credit)** | **1,203** | **(55)** | - PRC subsidiaries are subject to a corporate income tax rate of **25%**, with a withholding tax rate of **7%** on PRC-sourced income (H1 2024: 10%)[161](index=161&type=chunk)[162](index=162&type=chunk) - No Hong Kong profits tax provision was made for Hong Kong entities due to **tax losses incurred**[163](index=163&type=chunk)[164](index=164&type=chunk) [11 DIVIDENDS](index=35&type=section&id=11%20DIVIDENDS) The Board resolved not to declare an interim dividend for the six months ended June 30, 2025, consistent with the prior year period - The Board resolved **not to declare an interim dividend** for the six months ended June 30, 2025[167](index=167&type=chunk)[168](index=168&type=chunk) [12 LOSS PER SHARE](index=36&type=section&id=12%20LOSS%20PER%20SHARE) For the six months ended June 30, 2025, basic loss per share was HK$0.03, an increase from HK$0.02 in the prior year period, with diluted loss per share being the same as basic loss due to no potentially dilutive ordinary shares H1 2025 Loss Per Share (HK$) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Loss attributable to owners of the company (HK$ thousand) | (102,232) | (89,049) | | Weighted average number of ordinary shares (thousand shares) | 3,656,472 | 3,656,472 | | **Basic loss per share (HK$)** | **(0.03)** | **(0.02)** | - As there were **no potentially dilutive ordinary shares** outstanding for the six months ended June 30, 2025, diluted loss per share was the same as basic loss per share[174](index=174&type=chunk)[175](index=175&type=chunk) [13 MOVEMENTS IN PROPERTY, PLANT AND EQUIPMENT](index=37&type=section&id=13%20MOVEMENTS%20IN%20PROPERTY%2C%20PLANT%20AND%20EQUIPMENT) For the six months ended June 30, 2025, the Group made additions to property, plant, and equipment of HK$0.02 million, with no disposals, and depreciation expenses of approximately HK$0.175 million recognized in administrative expenses - For the six months ended June 30, 2025, additions to the Group's property, plant, and equipment amounted to **HK$20,000**[176](index=176&type=chunk)[180](index=180&type=chunk) - For the six months ended June 30, 2025, the Group made **no disposals** of property, plant, and equipment[177](index=177&type=chunk)[180](index=180&type=chunk) - Depreciation expenses of approximately **HK$175,000** were charged to administrative expenses[177](index=177&type=chunk)[180](index=180&type=chunk) [14 MOVEMENTS IN RIGHT-OF-USE ASSETS](index=37&type=section&id=14%20MOVEMENTS%20IN%20RIGHT-OF-USE%20ASSETS) For the six months ended June 30, 2025, there were no additions to right-of-use assets, and depreciation expenses of approximately HK$5.203 million were recognized in administrative expenses - For the six months ended June 30, 2025, there were **no additions to right-of-use assets**[178](index=178&type=chunk)[181](index=181&type=chunk) - Depreciation of approximately **HK$5,203,000** was charged to administrative expenses in the unaudited condensed consolidated statement of profit or loss and other comprehensive income[178](index=178&type=chunk)[181](index=181&type=chunk) [15 PREPAYMENTS FOR FILM AND TV PROGRAMMES RIGHTS](index=37&type=section&id=15%20PREPAYMENTS%20FOR%20FILM%20AND%20TV%20PROGRAMMES%20RIGHTS) As of June 30, 2025, prepayments for film and TV programme rights under development amounted to HK$360.529 million, a slight increase from December 31, 2024, representing part of the Group's contributions to proposed film and TV programme rights investments Prepayments for Film and TV Programme Rights (HK$ thousand) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Prepayments for film and TV programme rights under development | 360,529 | 359,588 | - These prepayments for film and TV programme rights under development represent advances made by the Group to various parties for film and TV programme rights not yet completed, forming part of the Group's contributions to proposed film and TV programme rights investments[183](index=183&type=chunk)[184](index=184&type=chunk) [16 FILM AND TV PROGRAMMES RIGHTS](index=38&type=section&id=16%20FILM%20AND%20TV%20PROGRAMMES%20RIGHTS) As of June 30, 2025, the Group's total film and TV programme rights amounted to HK$1,141.864 million, including completed rights of HK$760.91 million, rights in progress of HK$201.167 million, film copyright investments of HK$147.662 million, and licensed rights of HK$32.125 million, representing a decrease from year-end 2024 Film and TV Programme Rights Composition (HK$ thousand) | Rights Type | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Completed film and TV programme rights | 760,910 | 930,087 | | Film and TV programme rights in progress | 201,167 | 154,053 | | Film copyright investments (at fair value through profit or loss) | 147,662 | 143,181 | | Licensed film and TV programme rights | 32,125 | 48,334 | | **Total** | **1,141,864** | **1,275,655** | - Film copyright investments refer to the Group's investments in film production, entitling it to a pre-determined percentage of future revenue generated by the films[186](index=186&type=chunk) - Licensed rights refer to licenses purchased from independent third parties for broadcasting authorized films or TV programmes on the Group's online video platform, and for sub-licensing to other independent third parties (if applicable)[186](index=186&type=chunk) [17 TRADE AND OTHER RECEIVABLES, DEPOSITS AND PREPAYMENTS](index=39&type=section&id=17%20TRADE%20AND%20OTHER%20RECEIVABLES%2C%20DEPOSITS%20AND%20PREPAYMENTS) As of June 30, 2025, net trade receivables were HK$43.967 million and net other receivables were HK$93.894 million, with trade receivables primarily aged over 365 days, and other receivables including approximately HK$13.161 million in loans receivable Trade and Other Receivables Overview as of June 30, 2025 (HK$ thousand) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade receivables (net of loss allowance) | 43,967 | 42,403 | | Deposits | 4,485 | 5,169 | | Prepayments | 18,456 | 14,646 | | Other receivables (net of loss allowance) | 93,894 | 78,138 | | **Total** | **137,861** | **120,541** | Trade Receivables Ageing Analysis as of June 30, 2025 (HK$ thousand) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 0 – 30 days | 4,044 | 64 | | 31 – 90 days | 143 | 158 | | 181 – 365 days | – | 22,989 | | Over 365 days | 39,780 | 19,192 | | **Total** | **43,967** | **42,403** | - Other receivables include approximately **HK$13,161,000** in loans receivable (net of loss allowance), bearing interest at an annual rate of **6%**[194](index=194&type=chunk) [18 TRADE AND OTHER PAYABLES](index=41&type=section&id=18%20TRADE%20AND%20OTHER%20PAYABLES) As of June 30, 2025, total trade and other payables amounted to HK$113.966 million, a decrease from HK$159.674 million on December 31, 2024, with trade payables primarily aged over 365 days Trade and Other Payables Overview as of June 30, 2025 (HK$ thousand) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables | 89,200 | 96,183 | | Other payables | 23,211 | 61,899 | | Accrued expenses | 1,555 | 1,592 | | **Total** | **113,966** | **159,674** | Trade Payables Ageing Analysis as of June 30, 2025 (HK$ thousand) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 0 – 30 days | 1,587 | 1,680 | | Over 365 days | 87,613 | 94,503 | | **Total** | **89,200** | **96,183** | [19 FILM INVESTMENT FUNDS FROM INVESTORS](index=42&type=section&id=19%20FILM%20INVESTMENT%20FUNDS%20FROM%20INVESTORS) For the six months ended June 30, 2025, the Group recognized revenue of approximately HK$23.528 million from film investment funds from investors, due to the investors' net proceeds being less than their contributions - For the six months ended June 30, 2025, the Group recognized revenue of approximately **HK$23,528,000** from film investment funds from investors after the relevant films were released in cinemas[200](index=200&type=chunk)[201](index=201&type=chunk) - The revenue arose because the investors' net proceeds were **less than their contributed film investment funds**[200](index=200&type=chunk)[201](index=201&type=chunk) - As of June 30, 2025, film investment funds from investors amounted to **HK$529.961 million**[111](index=111&type=chunk) [20 BORROWING](index=42&type=section&id=20%20BORROWING) As of June 30, 2025, the Group's total unsecured borrowings were HK$29.544 million, bearing interest at an annual rate of 4.35% and repayable by March 27, 2026, all reclassified as current liabilities Borrowings Overview (HK$ thousand) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Unsecured borrowings | 29,544 | 42,440 | | Non-current liabilities | – | 42,440 | | Current liabilities | 29,544 | – | - The borrowings bear interest at an annual rate of **4.35%** and are repayable by **March 27, 2026**[204](index=204&type=chunk) [21 SHARE CAPITAL](index=43&type=section&id=21%20SHARE%20CAPITAL) As of June 30, 2025, the company's authorized share capital was 50 billion ordinary shares with a par value of HK$0.01 each, and issued and fully paid share capital was 3,656,472,362 shares, totaling HK$36.565 million, consistent with year-end 2024 Share Capital Overview (HK$ thousand) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Authorized share capital (shares) | 50,000,000,000 | 50,000,000,000 | | Authorized share capital (HK$ thousand) | 500,000 | 500,000 | | Issued and fully paid share capital (shares) | 3,656,472,362 | 3,656,472,362 | | Issued and fully paid share capital (HK$ thousand) | 36,565 | 36,565 | [22 RESERVES](index=44&type=section&id=22%20RESERVES) As of June 30, 2025, the company's total reserves amounted to HK$1,047.813 million, a decrease from HK$1,117.85 million on January 1, 2025, primarily impacted by the loss for the period, with accumulated losses increasing to HK$2,403.533 million H1 2025 Reserves Movement Overview (HK$ thousand) | Reserve Type | January 1, 2025 | Loss for the period | Other comprehensive income | June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | | Share premium | 3,506,614 | – | – | 3,506,614 | | Exchange reserve | (87,463) | – | 32,195 | (55,268) | | Accumulated losses | (2,301,301) | (102,232) | – | (2,403,533) | | **Total** | **1,117,850** | **(102,232)** | **32,195** | **1,047,813** | - Accumulated losses include a capital reserve of approximately **HK$2.099 million** arising from Group reorganization, and contributed surplus of approximately **HK$149.22 million** arising from capital reorganization and cancellation of share premium in prior years[209](index=209&type=chunk)[210](index=210&type=chunk)[211](index=211&type=chunk) [23 COMMITMENTS](index=45&type=section&id=23%20COMMITMENTS) As of June 30, 2025, the Group had contracted but unprovided commitments for film and TV programme rights acquisition and production totaling HK$149.219 million Film and TV Programme Rights Acquisition and Production Commitments (HK$ thousand) | Commitment Type | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Film and TV programme rights acquisition and production commitments | 149,219 | 144,456 | [24 RELATED PARTY DISCLOSURES](index=45&type=section&id=24%20RELATED%20PARTY%20DISCLOSURES) For the six months ended June 30, 2025, total emoluments for directors and key management personnel were HK$7.636 million, consistent with the prior year period, determined by the remuneration committee based on individual performance and market trends H1 2025 Key Management Personnel Emoluments (HK$ thousand) | Emolument Type | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Short-term benefits | 7,627 | 7,627 | | Post-employment benefits – defined contribution plans | 9 | 9 | | **Total** | **7,636** | **7,636** | - Emoluments for directors and key management personnel are determined by the company's Remuneration Committee based on **individual performance and market trends**[215](index=215&type=chunk)[217](index=217&type=chunk) [25 EVENT AFTER THE REPORTING PERIOD](index=45&type=section&id=25%20EVENT%20AFTER%20THE%20REPORTING%20PERIOD) Mr. Dong Ping resigned as Executive Director and Chairman on July 27, 2025, and Ms. Hu Hui was appointed as an Executive Director, effective the same day - Mr. Dong Ping resigned as Executive Director and Chairman of the company, effective **July 27, 2025**[216](index=216&type=chunk)[218](index=218&type=chunk) - The Board appointed Ms. Hu Hui as an Executive Director, effective **July 27, 2025**[216](index=216&type=chunk)[218](index=218&type=chunk)

[Corporate Profile](index=3&type=section&id=Corporate%20Profile) This section provides an overview of the company's governance structure, including its Board of Directors and committees, along with essential corporate information and contact details [Board of Directors and Committees](index=3&type=section&id=BOARD%20OF%20DIRECTORS) This section outlines the composition of the company's Board of Directors, Audit Committee, Remuneration Committee, and Nomination Committee, including changes in director and joint company secretary appointments and resignations - Mr. Liu Zhizhen was appointed as an executive director on January 26, 2025[4](index=4&type=chunk) - Mr. Li Zhengquan resigned as an executive director on January 26, 2025[4](index=4&type=chunk) - Mr. Yang Cheng was appointed as a joint company secretary on January 26, 2025[5](index=5&type=chunk) - Mr. Zheng Chengjie was appointed as a joint company secretary and authorized representative on July 10, 2025[5](index=5&type=chunk) [Corporate Information and Contacts](index=4&type=section&id=Corporate%20Information%20and%20Contacts) This section provides detailed information on the company's auditor, legal counsel, website, stock code, registered office, principal place of business, share registrar, and principal bankers - The company's auditor is ZHONGHUI ANDA CPA Limited[8](index=8&type=chunk) - The company's stock code is **797**[8](index=8&type=chunk) - The company's principal bankers include Bank of China Shenzhen Qianhaiwan Branch and China Merchants Bank Shanghai Xuhui Binjiang Branch[11](index=11&type=chunk) [Financial Performance Highlights](index=6&type=section&id=Financial%20Performance%20Highlights) For the six months ended June 30, 2025, revenue from continuing operations increased by **26.5%** to approximately **RMB 176.4 million**, achieving a profit of approximately **RMB 26.1 million** for the period, reversing the loss from the same period last year 2025 H1 Financial Performance Summary | Metric | 2025 H1 (RMB thousands) | 2024 H1 (RMB thousands) | Change Rate | | :--- | :--- | :--- | :--- | | Revenue | 176,387 | 139,389 | +26.5% | | Profit/(Loss) for the period | 26,099 | (5,971) | Turned from loss to profit | | Profit/(Loss) for the period attributable to owners of the Company | 27,129 | (7,814) | Turned from loss to profit | [Management Discussion and Analysis](index=7&type=section&id=Management%20Discussion%20and%20Analysis) This section analyzes the company's performance, covering industry overview, business review, future outlook, and a detailed financial review, including operational data, income statement, liquidity, investments, and human resources [Industry Overview](index=7&type=section&id=I.%20Overview%20of%20the%20industries%20in%20which%20the%20Company%20operates%20in) In the first half of 2025, China's game market achieved record-high actual sales revenue and player scale, driven by new game performance, stable growth of evergreen games, and strong momentum in esports and mini-program games 2025 H1 China Game Market Data | Metric | Amount/Quantity | Year-on-year growth rate | | :--- | :--- | :--- | | Actual Sales Revenue | approx RMB 168.0 billion | approx 14.08% | | Game Player Scale | nearly 679 million people | approx 0.72% | | Mobile Game Market Actual Sales Revenue | approx RMB 125.31 billion | approx 16.55% | | Client Game Market Actual Sales Revenue | approx RMB 35.40 billion | approx 4.86% | | Web Game Market Actual Sales Revenue | approx RMB 2.20 billion | approx -5.87% | | Mini-Program Mobile Game Actual Sales Revenue | approx RMB 23.28 billion | 40.2% | | Overseas Actual Sales Revenue of China's Self-Developed Games | approx USD 9.50 billion | 11.07% | - Market revenue and user scale grew simultaneously, primarily driven by outstanding new game performance, robust operation of evergreen games, and strong growth in esports and mini-program games[15](index=15&type=chunk)[16](index=16&type=chunk) - Strategy and role-playing games accounted for the highest proportion among self-developed mobile games exported from China[15](index=15&type=chunk)[16](index=16&type=chunk) [Business Review in the First Half of 2025](index=8&type=section&id=II.%20Business%20review%20in%20the%20first%20half%20of%202025) In the first half of 2025, the Group focused on core businesses, with online game revenue increasing by **30.7%** to approximately **RMB 176 million**, of which mobile games accounted for **79%** 2025 H1 Online Game Revenue Composition | Metric | 2025 H1 (RMB) | 2024 H1 (RMB) | Year-on-year growth rate | | :--- | :--- | :--- | :--- | | Online Game Revenue | approx 176 million | approx 135 million | 30.7% | | Mobile Game Revenue Share | 79% | - | - | | Web Game Revenue Share | 21% | - | - | - Self-developed mobile game "DDTank" saw its cumulative revenue increase by **15.2%** in the first half of 2025[21](index=21&type=chunk)[23](index=23&type=chunk) - The exclusively operated mini-program game "I Am MT" has been launched on multiple platforms and continues to generate revenue[21](index=21&type=chunk)[23](index=23&type=chunk) - The "Myth War H5" project successfully expanded to Hong Kong, Macau, Taiwan, and Southeast Asia after its launch in Europe and America, contributing incremental revenue[22](index=22&type=chunk)[23](index=23&type=chunk) - The company has successfully integrated artificial intelligence into multiple business lines, enhancing R&D efficiency and product quality[25](index=25&type=chunk)[26](index=26&type=chunk) [Outlook for the Second Half of 2025](index=10&type=section&id=OUTLOOK%20FOR%20THE%20SECOND%20HALF%20OF%202025) The Group will continue its "IP-driven," "premiumization," and "globalization" strategies in the second half of 2025, deepening R&D investment in casual competitive and MMORPG genres, and exploring niche overseas markets - The Group will continue to adhere to the "IP-driven," "premiumization," and "globalization" development strategies, strengthening long-term operations and global publishing capabilities[27](index=27&type=chunk)[32](index=32&type=chunk) - Multiple projects under the classic IPs "DDTank" and "Myth War" have completed content development and market preparation, and will actively participate in the "summer season" competition[28](index=28&type=chunk)[32](index=32&type=chunk) - Overseas publishing will explore market opportunities in Turkey and extend to the Middle East region[29](index=29&type=chunk)[33](index=33&type=chunk) - The first "DDTank" IP cross-platform classic version is under development, with basic R&D expected to be completed within 2025[30](index=30&type=chunk)[34](index=34&type=chunk) - "I Am MT" 3D mini-program project and other mini-program projects are expected to be launched in the market in the second half of 2025[31](index=31&type=chunk)[34](index=34&type=chunk) [Financial Review](index=12&type=section&id=FINANCIAL%20REVIEW) This section reviews the company's financial performance in the first half of 2025, including operational data, income statement items, liquidity, borrowings, capital expenditures, and risk management, showing a turnaround to profit [Operational Information](index=12&type=section&id=Operational%20Information) In the first half of 2025, the company's online game revenue primarily came from popular titles such as "DDTank" series, "Myth War" series, "I Am MT," and "Bloodline," with ARPPU for both web and mobile games increasing - In the first half of 2025, the Group's online game revenue primarily came from well-known games such as the "DDTank" series, "Myth War" series, "I Am MT," and "Bloodline"[39](index=39&type=chunk)[42](index=42&type=chunk) 2025 H1 Key Operational Performance Indicators | Metric | Web Games | Mobile Games | | :--- | :--- | :--- | | Average Monthly Active Users (MAUs) | approx **0.64 million** | approx **0.55 million** | | Average Monthly Paying Users (MPUs) | approx **24,200** | approx **47,400** | | Average Revenue Per Paying User (ARPPU) | approx **RMB 626** (year-on-year increase of **19.2%**) | approx **RMB 620** (year-on-year increase of **15.9%**) | [Comparison of Statement of Profit or Loss](index=13&type=section&id=THE%20SIX%20MONTHS%20ENDED%2030%20JUNE%202025%20COMPARED%20TO%20THE%20SIX%20MONTHS%20ENDED%2030%20JUNE%202024) In the first half of 2025, the company's continuing operations generated revenue of **RMB 176.4 million**, a **26.5%** increase year-on-year, achieving a profit of **RMB 26.1 million** for the period 2025 H1 Key Data from Statement of Profit or Loss for Continuing Operations | Metric | 2025 H1 (RMB thousands) | 2024 H1 (RMB thousands) | Year-on-year change rate | | :--- | :--- | :--- | :--- | | Revenue | 176,387 | 139,389 | +26.5% | | Cost of Revenue | (53,748) | (35,856) | +49.9% | | Gross Profit | 122,639 | 103,533 | +18.5% | | Research and Development Expenses | (33,074) | (70,690) | -53.2% | | Selling and Marketing Expenses | (24,690) | (38,023) | -35.1% | | Administrative Expenses | (29,811) | (21,322) | +39.8% | | Operating Profit/(Loss) | 32,419 | (4,789) | Turned from loss to profit | | Profit/(Loss) Before Income Tax | 31,579 | (6,911) | Turned from loss to profit | | Income Tax Expense | (5,480) | (335) | +1535.8% | | Profit/(Loss) for the Period | 26,099 | (5,971) | Turned from loss to profit | | Profit/(Loss) for the Period Attributable to Owners of the Company | 27,129 | (7,814) | Turned from loss to profit | - Gross profit margin decreased from **74.3%** in the first half of 2024 to **69.5%** in the first half of 2025, primarily because the growth rate of cost of revenue exceeded that of revenue[51](index=51&type=chunk)[55](index=55&type=chunk) - Research and development expenses decreased by **53.2%**, mainly due to enhanced R&D expense management and reduced staff remuneration and other R&D expenses[52](index=52&type=chunk)[56](index=56&type=chunk) - Selling and marketing expenses decreased by **35.1%**, primarily due to reduced marketing and promotional expenses for game operations and distribution[53](index=53&type=chunk)[57](index=57&type=chunk) - Administrative expenses increased by **39.8%**, mainly due to higher other professional service fees[58](index=58&type=chunk)[62](index=62&type=chunk) [Liquidity and Financial Resources](index=16&type=section&id=LIQUIDITY%20AND%20FINANCIAL%20RESOURCES) As of June 30, 2025, cash and cash equivalents increased to approximately **RMB 100 million**, up **64.9%** year-on-year, driven by net cash inflow from operating activities, while capital expenditure significantly decreased Key Data for Liquidity and Financial Resources | Metric | 2025-06-30 (RMB millions) | 2024-12-31 (RMB millions) | Change Rate | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 100.0 | 60.7 | +64.9% | | Total Borrowings | 15.0 | 15.0 | 0% | | Gearing Ratio | 7.7% | 6.9% | +0.8% | | Total Capital Expenditure (H1) | 0.6 | 16.3 | -96.5% | - The company has no policy to hedge against foreign exchange fluctuation risks[74](index=74&type=chunk)[79](index=79&type=chunk) - As of June 30, 2025, the company pledged property, plant and equipment of approximately **RMB 7.227 million** and right-of-use assets of approximately **RMB 32.234 million** for borrowings of **RMB 15 million**[75](index=75&type=chunk)[80](index=80&type=chunk) - As of the date of this interim report, the company has no other significant future plans for investments or capital assets[78](index=78&type=chunk)[82](index=82&type=chunk) [Significant Investments Held](index=19&type=section&id=SIGNIFICANT%20INVESTMENTS%20HELD) The company holds significant investments in Shanghai Chaosilicon, Ningbo Lianjun, and Nanjing Linghang; the investment in Shanghai Chaosilicon was sold in July 2025, expected to yield a gain of approximately **RMB 2 million** Fair Value and Proportion of Significant Investments (June 30, 2025) | Investment Project | Fair Value (RMB millions) | % of Total Assets | Accumulated Unrealized Fair Value Gain (RMB millions) | | :--- | :--- | :--- | :--- | | Shanghai Chaosilicon | 394.0 | approx 21.4% | 14.0 | | Ningbo Lianjun | 116.3 | approx 6.3% | 11.3 | | Nanjing Linghang | 122.3 | approx 6.6% | 0 | - The investment in Shanghai Chaosilicon was completed on July 16, 2025, with an expected disposal gain of approximately **RMB 2 million** for 2025, totaling approximately **RMB 14 million** in gains compared to the original investment cost[85](index=85&type=chunk)[88](index=88&type=chunk) - Ningbo Lianjun's investment focuses on integrated circuits and their upstream and downstream enterprises[91](index=91&type=chunk)[96](index=96&type=chunk) - Nanjing Linghang operates a smart mobility platform[93](index=93&type=chunk)[97](index=97&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=20&type=section&id=MATERIAL%20ACQUISITIONS%20AND%20DISPOSALS%20OF%20SUBSIDIARIES,%20ASSOCIATES%20AND%20JOINT%20VENTURES) For the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures[95](index=95&type=chunk)[98](index=98&type=chunk) [Employees and Remuneration Policies](index=21&type=section&id=EMPLOYEES%20AND%20REMUNERATION%20POLICIES) As of June 30, 2025, the company had **209** full-time employees, with R&D personnel accounting for **70%**, and total employee remuneration for the first half of the year was approximately **RMB 45.8 million** Number of Employees by Function as of June 30, 2025 | Function | Number of Employees | Percentage of Total | | :--- | :--- | :--- | | R&D | 146 | 70% | | Operations | 28 | 13% | | Administration | 35 | 17% | | **Total** | **209** | **100%** | - For the six months ended June 30, 2025, total employee remuneration was approximately **RMB 45.8 million**[101](index=101&type=chunk)[104](index=104&type=chunk) - The company determines remuneration based on employee performance, experience, capabilities, and market conditions, and provides targeted training[102](index=102&type=chunk)[104](index=104&type=chunk) [Other Information](index=22&type=section&id=Other%20Information) This section covers other important information including legal proceedings, subsequent events, directors' and substantial shareholders' interests, RSU scheme, share capital changes, securities dealings, dividend policy, corporate governance, director information changes, compliance with laws and regulations, and audit committee work [Material Legal Proceedings](index=22&type=section&id=MATERIAL%20LEGAL%20PROCEEDINGS) The "DDTank" intellectual property contract dispute lawsuit filed by Qianhai Huanjing in April 2021 is currently under retrial and is not expected to affect the Group's normal business operations - The "DDTank" intellectual property contract dispute lawsuit filed by Qianhai Huanjing in April 2021, with a claim amount of approximately **RMB 60.2 million**, is currently under retrial at the Shenzhen Intermediate People's Court[105](index=105&type=chunk)[108](index=108&type=chunk) - This lawsuit is not expected to affect the Group's normal business operations[105](index=105&type=chunk)[108](index=108&type=chunk) [Significant Subsequent Events](index=22&type=section&id=SIGNIFICANT%20SUBSEQUENT%20EVENTS) After June 30, 2025, the company completed the disposal of its equity interest in the Shanghai Chaosilicon related partnership on July 16, 2025 - The Group completed the disposal of its equity interest in the related partnership on July 16, 2025[107](index=107&type=chunk)[110](index=110&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures](index=23&type=section&id=DIRECTORS'%20AND%20CHIEF%20EXECUTIVE'S%20INTERESTS%20AND%20SHORT%20POSITIONS%20IN%20THE%20SHARES,%20UNDERLYING%20SHARES%20AND%20DEBENTURES) As of June 30, 2025, Mr. Meng Shuqi held **19.20%** of the company's shares through controlled corporations and beneficially owned **21.50%** of Shenzhen 7Road's registered capital Directors' Interests in the Company (June 30, 2025) | Name of Director | Capacity/Nature of Interest | Number of Shares or Underlying Shares Held | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Meng Shuqi | Interest in controlled corporation | 528,854,000 | 19.20% | Directors' Interests in Other Group Companies (June 30, 2025) | Name of Director | Name of Other Group Company | Capacity/Nature of Interest | Approximate Percentage of Registered Capital | | :--- | :--- | :--- | :--- | | Mr. Meng Shuqi | Shenzhen 7Road | Beneficial owner | 21.50% | [Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares and Underlying Shares](index=25&type=section&id=SUBSTANTIAL%20SHAREHOLDERS'%20AND%20OTHER%20PERSONS'%20INTERESTS%20AND%20SHORT%20POSITIONS%20IN%20SHARES%20AND%20UNDERLYING%20SHARES) As of June 30, 2025, several entities and individuals, including Baohu Holdings Limited and its associates, held over **5%** equity interests in the company Interests of Substantial Shareholders and Other Persons in Shares (June 30, 2025) | Name/Designation | Capacity/Nature of Interest | Number of Shares or Underlying Shares Held | Approximate Percentage of Interest | | :--- | :--- | :--- | :--- | | Baohu Holdings Limited | Beneficial owner | 352,714,000 | 12.81% | | Shanghai Bao Hu Investment Management Center (Limited Partnership) | Interest in controlled corporation | 352,714,000 | 12.81% | | Shanghai Bao Pu Investment Management Co., Ltd. | Interest in controlled corporation | 353,586,000 | 12.84% | | Ningbo Hao Chu Enterprise Management Consulting Co., Ltd. | Interest in controlled corporation | 353,586,000 | 12.84% | | Mr. Yan Zurong | Interest in controlled corporation | 353,586,000 | 12.84% | | Shengqu Technology Korean Limited | Beneficial owner | 51,902,000 | 1.89% | | Shengqu Technology Korean Limited | Interest in controlled corporation | 88,764,000 | 3.22% | | Zhejiang Century Huatong Group Co., Ltd. | Interest in controlled corporation | 274,366,000 | 9.97% | | Shangyulongcheng Holdings Limited | Beneficial owner | 174,410,000 | 6.33% | | Shaoxing Shang Yu Long Cheng Capital Investment Fund (Limited Partnership) | Interest in controlled corporation | 174,410,000 | 6.33% | | Zhejiang Long Xin Equity Investment Management Co., Ltd. | Interest in controlled corporation | 174,410,000 | 6.33% | | Wolong Holding Group Co., Ltd. | Interest in controlled corporation | 174,410,000 | 6.33% | | Mr. Chen Jiancheng | Interest in controlled corporation | 174,410,000 | 6.33% | | Ms. Chen Yanni | Interest in controlled corporation | 174,410,000 | 6.33% | | Ben 7Road Holdings Limited | Beneficial owner | 429,922,000 | 15.62% | | Ben 7Road Holdings Limited | Interest in controlled corporation | 98,932,000 | 3.59% | | World 7Road Holdings Limited | Beneficial owner | 331,130,000 | 12.03% | | World 7Road Holdings Limited | Interest in controlled corporation | 80,000,000 | 2.91% | | Mr. Hu Min | Interest in controlled corporation | 411,130,000 | 14.93% | | Songshuxing Holdings Limited | Beneficial owner | 189,936,000 | 6.90% | | Mr. Song Shuxing | Interest in controlled corporation | 189,936,000 | 6.90% | [Restricted Share Unit Scheme](index=28&type=section&id=RSU%20SCHEME) The company adopted an RSU scheme on March 6, 2018, to incentivize employees; as of June 30, 2025, RSU trustees held **178,932,000** shares for the scheme, with no RSU grants or vesting during the period - The RSU scheme aims to incentivize directors, senior management, and employees, attracting, motivating, and retaining talent[127](index=127&type=chunk)[131](index=131&type=chunk) - As of June 30, 2025, RSU trustees held **178,932,000** shares for the RSU scheme[134](index=134&type=chunk)[136](index=136&type=chunk) - For the six months ended June 30, 2025, no restricted share units were granted, vested, expired, lapsed, cancelled, or remained unvested[139](index=139&type=chunk)[141](index=141&type=chunk) - The remaining term of the RSU scheme is approximately two years and eight months[138](index=138&type=chunk)[141](index=141&type=chunk) [Movements in Share Capital](index=31&type=section&id=MOVEMENTS%20IN%20SHARE%20CAPITAL) For the six months ended June 30, 2025, there were no movements in the company's share capital - For the six months ended June 30, 2025, there were no movements in the company's share capital[144](index=144&type=chunk)[152](index=152&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=31&type=section&id=PURCHASE,%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 shares, and the company held no treasury shares - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any shares (including treasury shares)[145](index=145&type=chunk)[153](index=153&type=chunk) - As of June 30, 2025, the company held no treasury shares[146](index=146&type=chunk)[153](index=153&type=chunk) [Interim Dividend](index=31&type=section&id=INTERIM%20DIVIDEND) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[147](index=147&type=chunk)[154](index=154&type=chunk) [Compliance with the Corporate Governance Code](index=31&type=section&id=COMPLIANCE%20WITH%20THE%20CG%20CODE) For the six months ended June 30, 2025, the company complied with all applicable code provisions of the Corporate Governance Code - For the six months ended June 30, 2025, the company complied with all applicable code provisions of the Corporate Governance Code as set out in Appendix C1 Part 2 of the Listing Rules[148](index=148&type=chunk)[155](index=155&type=chunk) [Model Code for Securities Transactions by Directors](index=31&type=section&id=MODEL%20CODE%20FOR%20SECURITIES%20TRANSACTIONS%20BY%20DIRECTORS) The company adopted the Model Code for Securities Transactions by Directors as its code of conduct, and all directors confirmed compliance for the period - The company adopted the Model Code as set out in Appendix C3 of the Listing Rules as its own code of conduct for securities transactions by directors and relevant employees[149](index=149&type=chunk)[156](index=156&type=chunk) - All directors confirmed compliance with the Model Code for the six months ended June 30, 2025[150](index=150&type=chunk)[156](index=156&type=chunk) [Sufficiency of Public Float](index=32&type=section&id=SUFFICIENCY%20OF%20PUBLIC%20FLOAT) As of the date of this interim report, the company maintained the public float as required by the Listing Rules - As of the date of this interim report, the company maintained the public float as required by the Listing Rules[157](index=157&type=chunk)[162](index=162&type=chunk) [Changes in Directors' and Chief Executive's Information](index=32&type=section&id=CHANGES%20IN%20DIRECTORS'%20AND%20CHIEF%20EXECUTIVE'S%20INFORMATION) Mr. Li Zhengquan resigned as executive director, CFO, and joint company secretary, while Mr. Liu Zhizhen and Mr. Yang Cheng were appointed to executive director and CFO/joint company secretary roles, respectively, effective January 26, 2025 - Mr. Li Zhengquan resigned as executive director, chief financial officer, and joint company secretary on January 26, 2025[158](index=158&type=chunk)[163](index=163&type=chunk) - Mr. Liu Zhizhen was appointed as an executive director on January 26, 2025[158](index=158&type=chunk)[163](index=163&type=chunk) - Mr. Yang Cheng was appointed as chief financial officer and joint company secretary on January 26, 2025[159](index=159&type=chunk)[163](index=163&type=chunk) [Compliance with Laws and Regulations](index=32&type=section&id=COMPLIANCE%20WITH%20LAWS%20AND%20REGULATIONS) For the six months ended June 30, 2025, and up to the date of this interim report, the company complied with relevant laws and regulations materially affecting it - For the six months ended June 30, 2025, and up to the date of this interim report, the Group complied with relevant laws and regulations materially affecting the company[160](index=160&type=chunk)[164](index=164&type=chunk) [Audit Committee](index=32&type=section&id=AUDIT%20COMMITTEE) The Audit Committee, comprising three independent non-executive directors with Mr. Xue Jun as chairman, has been established in accordance with the Corporate Governance Code - The Audit Committee comprises three independent non-executive directors: Mr. Xue Jun (Chairman), Ms. Li Yiqing, and Mr. Lu Zhihao[161](index=161&type=chunk)[165](index=165&type=chunk) [Review of the Interim Financial Information and the Interim Report](index=33&type=section&id=REVIEW%20OF%20THE%20INTERIM%20FINANCIAL%20INFORMATION%20AND%20THE%20INTERIM%20REPORT) The Audit Committee reviewed the Group's unaudited interim financial information and interim report for the six months ended June 30, 2025 - The Audit Committee reviewed the Group's unaudited interim financial information and interim report for the six months ended June 30, 2025[166](index=166&type=chunk)[168](index=168&type=chunk) [Publication of the Interim Report](index=33&type=section&id=PUBLICATION%20OF%20THE%20INTERIM%20REPORT) This interim report has been published on the company's website (www.7road.com) and the HKEXnews website (www.hkexnews.hk) - This interim report has been published on the company's website (www.7road.com) and the HKEXnews website (www.hkexnews.hk)[167](index=167&type=chunk)[169](index=169&type=chunk) [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=34&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement presents the company's unaudited condensed consolidated profit or loss and other comprehensive income for the six months ended June 30, 2025, showing a significant improvement from a loss to a profit in continuing operations 2025 H1 Summary of Statement of Profit or Loss and Other Comprehensive Income | Metric | 2025 H1 (RMB thousands) | 2024 H1 (RMB thousands) | | :--- | :--- | :--- | | Revenue from Continuing Operations | 176,387 | 139,389 | | Profit/(Loss) for the Period from Continuing Operations | 26,099 | (7,246) | | Profit/(Loss) for the Period | 26,099 | (5,971) | | Profit/(Loss) for the Period Attributable to Owners of the Company | 27,129 | (7,814) | | Basic and Diluted Profit/(Loss) Per Share (RMB) | 0.011 | (0.003) | [Unaudited Condensed Consolidated Statement of Financial Position](index=36&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement provides the company's unaudited condensed consolidated financial position as of June 30, 2025, indicating a slight increase in total assets, stable net current assets, and growth in total equity 2025 H1 Summary of Statement of Financial Position | Metric | 2025-06-30 (RMB thousands) | 2024-12-31 (RMB thousands) | | :--- | :--- | :--- | | Non-current Assets | 1,575,811 | 1,547,385 | | Current Assets | 269,422 | 257,234 | | Current Liabilities | 122,994 | 113,783 | | Non-current Liabilities | 18,376 | 11,225 | | Net Assets | 1,703,863 | 1,679,611 | | Total Equity Attributable to Owners of the Company | 1,703,863 | 1,678,077 | | Cash and Cash Equivalents | 100,008 | 60,653 | [Unaudited Condensed Consolidated Statement of Changes in Equity](index=37&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This statement presents the company's unaudited condensed consolidated statement of changes in equity for the six months ended June 30, 2025, showing an increase in total equity attributable to owners of the company, primarily due to total comprehensive income for the period 2025 H1 Summary of Changes in Equity | Metric | 2025-06-30 (RMB thousands) | 2024-06-30 (RMB thousands) | | :--- | :--- | :--- | | Total Equity Attributable to Owners of the Company | 1,703,863 | 1,743,846 | | Total Comprehensive Income/(Expense) for the Period | 24,756 | (6,224) | | Retained Earnings | 587,351 | 625,861 | - Non-controlling interests decreased to zero in the first half of 2025, partly due to the acquisition of non-controlling interests without a change in control[178](index=178&type=chunk) [Interim Condensed Consolidated Statement of Cash Flows](index=38&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This statement summarizes the company's cash flows for the six months ended June 30, 2025, showing increased net cash from operating activities, net cash outflow from investing activities, reduced net cash outflow from financing activities, and a significant increase in cash and cash equivalents 2025 H1 Summary of Cash Flow Statement | Type of Cash Flow | 2025 H1 (RMB thousands) | 2024 H1 (RMB thousands) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 47,897 | 41,419 | | Net Cash (Used in)/from Investing Activities | (3,823) | 49,931 | | Net Cash Used in Financing Activities | (3,353) | (88,699) | | Net Increase in Cash and Cash Equivalents | 40,721 | 2,651 | | Cash and Cash Equivalents at End of Period | 100,008 | 50,206 | - Cash outflow from investing activities primarily included payments for the purchase of other financial assets at fair value through profit or loss (**RMB 38 million**) and payments for the acquisition of property, plant and equipment (**RMB 0.57 million**)[179](index=179&type=chunk) - Net cash used in financing activities significantly decreased, mainly due to large repayments of bank and other borrowings and lease liabilities in the same period of 2024[179](index=179&type=chunk) [Notes to the Unaudited Condensed Consolidated Financial Statements](index=39&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the unaudited condensed consolidated financial statements, covering general information, basis of preparation, adoption of new accounting standards, fair value measurements, segment information, and other financial details [1. General Information](index=40&type=section&id=1.%20GENERAL%20INFORMATION) The company was incorporated in the Cayman Islands on September 6, 2017, primarily engaged in the development and publishing of web and mobile games in China and other countries, with its unaudited condensed consolidated financial statements presented in RMB - The company was incorporated in the Cayman Islands on September 6, 2017, primarily engaged in the development and publishing of web and mobile games[180](index=180&type=chunk)[181](index=181&type=chunk)[184](index=184&type=chunk) - The unaudited condensed consolidated financial statements are presented in RMB and were approved for publication by the Board of Directors on August 28, 2025[181](index=181&type=chunk)[184](index=184&type=chunk) [2. Basis of Preparation](index=40&type=section&id=2.%20BASIS%20OF%20PREPARATION) The unaudited condensed consolidated financial statements are prepared in accordance with IAS 34 "Interim Financial Reporting" and applicable disclosure requirements of the Listing Rules, consistent with the accounting policies used for the 2024 annual financial statements - The financial statements are prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and the applicable disclosure requirements of the Listing Rules[182](index=182&type=chunk)[185](index=185&type=chunk) - The accounting policies and methods of computation used are consistent with those applied in the annual financial statements for the year ended December 31, 2024[183](index=183&type=chunk)[185](index=185&type=chunk) [3. Adoption of New and Revised IFRS Accounting Standards](index=41&type=section&id=3.%20ADOPTION%20OF%20NEW%20AND%20REVISED%20IFRS%20ACCOUNTING%20STANDARDS) The company adopted all business-relevant new and revised IFRS accounting standards effective January 1, 2025, with no significant changes to accounting policies or financial statement presentation, and is evaluating the impact of new standards not yet effective - All business-relevant new and revised IFRS accounting standards effective January 1, 2025, have been adopted for the current period[187](index=187&type=chunk)[190](index=190&type=chunk) - The adoption of these new standards did not result in significant changes to accounting policies, financial statement presentation, or reported amounts[187](index=187&type=chunk)[190](index=190&type=chunk) - The company has commenced assessing the impact of new and revised IFRS accounting standards not yet effective[188](index=188&type=chunk)[190](index=190&type=chunk) [4. Fair Value Measurements](index=41&type=section&id=4.%20FAIR%20VALUE%20MEASUREMENTS) This section discloses the fair value measurements of the company's financial assets, including those at fair value through profit or loss, categorized by fair value hierarchy (Level 1, Level 2, Level 3), with most being Level 3 measurements [Disclosures of Level in Fair Value Hierarchy](index=42&type=section&id=Disclosures%20of%20level%20in%20fair%20value%20hierarchy) As of June 30, 2025, the total financial assets at fair value through profit or loss amounted to **RMB 863.7 million**, with the majority being Level 3 measurements, including unlisted equity investments and unlisted limited partnerships in China Fair Value Measurement Hierarchy as of June 30, 2025 | Description | Level 1 (RMB thousands) | Level 2 (RMB thousands) | Level 3 (RMB thousands) | Total (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Hong Kong listed equity securities | 22,326 | — | — | 22,326 | | China unlisted equity investments | — | — | 298,848 | 298,848 | | China unlisted limited partnerships | — | — | 542,553 | 542,553 | | **Total recurring fair value measurements** | **22,326** | **—** | **841,401** | **863,727** | [Movement of Financial Assets at Fair Value Through Profit or Loss for the Period](index=43&type=section&id=Movement%20of%20financial%20assets%20at%20fair%20value%20through%20profit%20or%20loss%20for%20the%20period) As of June 30, 2025, total financial assets at fair value through profit or loss increased to **RMB 863.7 million**, with new investments of **RMB 38 million** and a net gain or loss of **RMB -53 thousand** recognized during the period 2025 H1 Movement of Financial Assets at Fair Value Through Profit or Loss | Movement Item | Hong Kong listed shares (RMB thousands) | China unlisted equity investments (RMB thousands) | China unlisted limited partnerships (RMB thousands) | Total (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | As at January 1, 2025 | 18,603 | 263,693 | 545,757 | 828,053 | | Additions | — | 38,000 | — | 38,000 | | Disposals | — | — | (2,166) | (2,166) | | Total gains or losses recognized in profit or loss | 3,830 | (2,845) | (1,038) | (53) | | Exchange adjustments | (107) | — | — | (107) | | **As at June 30, 2025** | **22,326** | **298,848** | **542,553** | **863,727** | - There were no transfers between Level 1, Level 2, and Level 3 during the period[197](index=197&type=chunk) [Disclosure of Valuation Process Used by the Group and Valuation Techniques and Inputs Used in Fair Value Measurements](index=44&type=section&id=Disclosure%20of%20valuation%20process%20used%20by%20the%20Group%20and%20valuation%20techniques%20and%20inputs%20used%20in%20fair%20value%20measurements) The company's CFO is responsible for fair value measurements, reporting directly to the Board, and the team uses valuation techniques at least twice a year for Level 3 measurements, engaging external experts when necessary - The Chief Financial Officer is responsible for fair value measurements, reporting directly to the Board, and discusses valuation processes and results with the Board at least twice a year[198](index=198&type=chunk)[200](index=200&type=chunk) - For Level 3 fair value measurements, the company's team uses valuation techniques to determine fair value at least twice a year, engaging external valuation experts when necessary[199](index=199&type=chunk)[200](index=200&type=chunk) 2025 H1 Level 3 Fair Value Measurement Valuation Techniques and Inputs | Description | Valuation Technique | Unobservable Input | Range | Impact of an increase in the input on fair value | | :--- | :--- | :--- | :--- | :--- | | Unlisted equity securities | Recent market transactions | Not applicable | Not applicable | Not applicable | | Unlisted equity securities | Market approach | Volatility | 43.24%–54.11% | Decrease | | | | Risk-free rate | 1.38%–1.47% | Decrease | | Unlisted limited partnerships, trusts and funds | Adjusted net asset value | Discount for lack of marketability | 9.00%–12.90% | Decrease | [5. Segment Information and Revenue](index=47&type=section&id=5.%20SEGMENT%20INFORMATION%20AND%20REVENUE) The company operates and manages as a single segment, thus no segment information is presented; total revenue from continuing operations for the six months ended June 30, 2025, was **RMB 176.4 million**, a **26.5%** increase, primarily from online games - The company primarily operates and manages as a single segment, therefore no segment information is presented[211](index=211&type=chunk)[213](index=213&type=chunk) 2025 H1 Revenue Details from Continuing Operations | Type of Goods or Services | 2025 H1 (RMB thousands) | 2024 H1 (RMB thousands) | | :--- | :--- | :--- | | **Online Game Revenue** | **176,387** | **134,941** | | — Self-developed games published by the Group | 92,733 | 77,734 | | — Self-developed games published by other publishers | 46,322 | 39,035 | | — Agency games published by the Group | 31,623 | 18,172 | | — Agency games published by other publishers | 5,709 | — | | Intellectual property licensing | — | 3,553 | | Cloud-related services | — | 895 | | **Total** | **176,387** | **139,389** | - In the first half of 2025, revenue from the top five single external customers was approximately **RMB 56.659 million**[215](index=215&type=chunk)[218](index=218&type=chunk) - Revenue from one single external customer was approximately **RMB 18.766 million**, accounting for over **10%** of total revenue[216](index=216&type=chunk)[218](index=218&type=chunk) [6. Other Income](index=48&type=section&id=6.%20OTHER%20INCOME) For the six months ended June 30, 2025, other income from continuing operations was **RMB 1.379 million**, a significant decrease from **RMB 13.545 million** in the prior year, mainly due to reduced government grants and other income 2025 H1 Other Income Details | Income Type | 2025 H1 (RMB thousands) | 2024 H1 (RMB thousands) | | :--- | :--- | :--- | | Government grants | 760 | 2,528 | | Refund of China VAT | 581 | 444 | | Others | 38 | 10,573 | | **Total** | **1,379** | **13,545** | - Other income significantly decreased year-on-year, mainly affected by a reduction in other income items (from **RMB 10.573 million** to **RMB 0.038 million**) and government grants (from **RMB 2.528 million** to **RMB 0.76 million**)[220](index=220&type=chunk) [7. Other Gains or Losses, Net](index=49&type=section&id=7.%20OTHER%20GAINS%20OR%20LOSSES,%20NET) For the six months ended June 30, 2025, other gains or losses from continuing operations resulted in a net loss of **RMB 0.292 million**, compared to a net gain of **RMB 23.011 million** in the prior year, primarily due to changes in fair value of financial assets at fair value through profit or loss 2025 H1 Other Gains or Losses, Net Details | Item | 2025 H1 (RMB thousands) | 2024 H1 (RMB thousands) | | :--- | :--- | :--- | | Fair value changes of financial assets at fair value through profit or loss | (53) | 21,225 | | (Loss)/gain on disposal of property, plant and equipment and right-of-use assets | (235) | 311 | | Gain on disposal of a subsidiary | 120 | — | | Net foreign exchange (loss)/gain | (36) | 394 | | Others | (88) | 1,081 | | **Total** | **(292)** | **23,011** | - Other gains or losses, net, turned from a gain of **RMB 21.225 million** in the first half of 2024 to a loss of **RMB 0.053 million** in the first half of 2025, which was the main reason for the overall shift from profit to loss[221](index=221&type=chunk) [8. Finance Costs, Net](index=49&type=section&id=8.%20FINANCE%20COSTS,%20NET) For the six months ended June 30, 2025, net finance costs from continuing operations decreased to **RMB 0.695 million** from **RMB 0.944 million** in the prior year, mainly due to reduced interest expenses on bank and other borrowings 2025 H1 Finance Costs, Net Details | Item | 2025 H1 (RMB thousands) | 2024 H1 (RMB thousands) | | :--- | :--- | :--- | | Finance income | 805 | 198 | | — Interest income from bank balances | 697 | 72 | | — Others | 108 | 126 | | Finance costs | (1,500) | (1,142) | | — Interest expense on bank and other borrowings | (234) | (578) | | — Interest expense on lease liabilities | (596) | (252) | | — Others | (670) | (312) | | **Finance costs, net** | **(695)** | **(944)** | - Net finance costs decreased primarily due to a reduction in interest expense on bank and other borrowings from **RMB 0.578 million** to **RMB 0.234 million**[223](index=223&type=chunk) [9. Income Tax Expense](index=50&type=section&id=9.%20INCOME%20TAX%20EXPENSE) For the six months ended June 30, 2025, income tax expense significantly increased to **RMB 5.48 million**, primarily due to higher profit before tax, with applicable income tax rates ranging from **8.25%** to **25%** 2025 H1 Income Tax Expense Details | Item | 2025 H1 (RMB thousands) | 2024 H1 (RMB thousands) | | :--- | :--- | :--- |

武漢大眾口腔醫療股份有限公司 Wuhan Dazhong Dental Medical Co., Ltd. (A joint stock company with limited liability incorporated in the People's Republic of China)（於中華人民共和國註冊成立的股份有限公司） Stock Code 股份代號 : 2651 中期報告 2025INTERIM REPORT INTERIM REPORT 2025 中期報告 目錄 | 公司資料 | 2 | | --- | --- | | 財務及業務摘要 | 4 | | 管理層討論與分析 | 5 | | 企業管治與其他信息 | 15 | | 中期簡明綜合損益及全面收益表 | 21 | | 中期簡明綜合財務狀況表 | 22 | | 中期簡明綜合權益變動表 | 24 | | 中期簡明綜合現金流量表 | 26 | | 中期簡明綜合財務資料附註 | 28 | | 釋義 | 38 | 公司資料 董事會 執行董事 姚雪先生 （主席） 沈洪敏女士 郭家平先生 劉紅嬋女士 獨立非執行董事 疏義傑先生 黃素珍女士 王陶沙女士 ...

Financial Performance - Ascentage Pharma reported a significant increase in revenue, reaching HKD 500 million for the first half of 2025, representing a 25% year-over-year growth[2]. - The company reported a net loss of HKD 100 million for the first half of 2025, a 10% improvement compared to the same period in 2024, indicating progress towards profitability[2]. - The company reported a total comprehensive loss of RMB 591.8 million for the six months ended June 30, 2025, compared to a total comprehensive income of RMB 165.1 million for the same period in 2024[89]. - For the six months ended June 30, 2025, the company's revenue was RMB 233.7 million, a decrease of RMB 590 million or 71.6% compared to RMB 823.7 million for the same period in 2024[90]. - The company reported a net income of $30 million, a 15% increase compared to the same quarter last year[10]. Research and Development - The company has allocated HKD 200 million for R&D in 2025, focusing on the development of new products like APG-5918 and APG-1252[2]. - The company is focused on research and development (R&D) in the field of oncology, particularly targeting diseases like small cell lung cancer (SCLC) and T315I mutations[13]. - R&D expenses rose by RMB 84.5 million (USD 12.7 million) or 19.0% to RMB 528.6 million (USD 73.8 million) for the six months ended June 30, 2025, mainly due to increased external R&D expenses related to ongoing global clinical trials[20]. - The company has a robust internal R&D capability, positioning itself as the only global company with clinical development programs targeting all three known key apoptosis regulators[30]. - The company is developing next-generation cell signaling inhibitors and epigenetic modifiers, including PROTACs targeting traditionally "undruggable" proteins[30]. Product Development and Launches - Ascentage Pharma has advanced its clinical trials for APG-2449, with a projected completion date in Q4 2025, aiming to address unmet medical needs in oncology[1]. - The company has successfully launched its new product, Lisaftoclax, which is expected to contribute approximately HKD 150 million in revenue in the next fiscal year[2]. - New product launches included the introduction of two innovative therapies, which are projected to generate $50 million in revenue within the first year[10]. - The company’s second product, Lisengto® (Lisatrakra), received conditional approval from the NMPA on July 10, 2025, for the treatment of adult CLL/SLL patients who have received prior systemic therapy including BTK inhibitors, marking it as the first Bcl-2 inhibitor approved for this indication in China[27]. - The company is advancing APG-5918 in I phase clinical studies for advanced solid tumors and hematologic malignancies in both China and the U.S.[63]. Market Expansion - Ascentage Pharma is expanding its market presence in Europe, with plans to establish partnerships with at least three major pharmaceutical companies by the end of 2025[1]. - The company is expanding its market presence in Europe, with plans to enter three new countries by mid-2024[11]. - The company is conducting multiple global Phase III clinical trials for lisatoclax in combination with AZA for newly diagnosed high-risk MDS and AML patients, with ongoing patient recruitment[50]. - The company plans to accelerate the market penetration of Lishengtuo® (Lisatrag) as the first Bcl-2 inhibitor conditionally approved for CLL/SLL treatment in China[72]. - The company is expanding its market presence with ongoing clinical trials in multiple countries, including the U.S. and China[45]. Strategic Partnerships and Collaborations - The company is exploring potential mergers and acquisitions to enhance its product pipeline, with a budget of HKD 300 million earmarked for this purpose in 2025[1]. - The company has established collaborations with leading biotech and pharmaceutical companies, including clinical partnerships with AstraZeneca, Merck, and Pfizer[31]. - The company has established a partnership with a leading pharmaceutical firm to co-develop a new drug, which is anticipated to enter clinical trials in Q1 2024[12]. - The company has entered into an exclusive option agreement with Takeda Pharmaceuticals for global development and commercialization rights outside of certain regions[26]. - The company plans to actively seek strategic partnerships with global biotech and pharmaceutical companies to capitalize on commercialization opportunities in the global drug market[129]. Financial Guidance and Projections - Future guidance suggests a revenue target of HKD 1 billion for the full year 2025, reflecting a 40% increase from 2024[2]. - The company provided guidance for Q4 2023, expecting revenue to be between $160 million and $170 million, indicating a potential growth of 20% to 30%[12]. - The company plans to use approximately 40% of the net proceeds from the 2025 placement for commercialization efforts, 35% for global clinical development, and 25% for infrastructure and operational funding[85]. Shareholder Information - The company has agreed to issue and allocate 24,307,322 shares to Takeda Pharmaceuticals under the securities purchase agreement[14]. - The share purchase price is set at HKD 24.09850, equivalent to approximately USD 3.08549 per share[14]. - Major shareholders collectively hold 17.38% of the company's shares, with Li Ju-Yun and Gao Sharon Xia each holding 60,665,461 shares[137]. - The company has a total of 6,787,587 unlisted warrants that can be exercised for new shares[14]. - The total number of issued shares is 348,999,320[136]. Clinical Trials and Efficacy - The company is conducting a Phase III clinical trial (POLARIS-2) for Nairike® (Aoralbatin) in CML patients, and has entered into an exclusive option agreement with Takeda Pharmaceuticals for global development and commercialization rights outside of certain regions[26]. - The ongoing clinical trials for Oreba include single-agent therapy for TKI-resistant CML-CP patients, with breakthrough therapy designation expected in 2025[35]. - Nairike® demonstrated high complete response (CR) rates and complete molecular response (CMR) rates in studies presented at the EHA 2025, indicating strong clinical efficacy for Ph+ ALL treatment[41]. - The overall response rate (ORR) for patients with R/R AML/MDS who are resistant to venetoclax and treated with lisatoclax is 31.8%, indicating significant anti-tumor activity[48]. - APG-2449, a novel oral FAK inhibitor, has shown preliminary clinical benefits and good safety in patients with NSCLC who are resistant to second-generation ALK TKIs[51]. Operational and Administrative Updates - The company employed 605 full-time employees as of June 30, 2025, with 421 (69.6%) in R&D roles[122]. - The employee retention rate over the past two years exceeded 82%, supporting the continuous development of the company's knowledge base[123]. - The company has established a global R&D center and industrialization base in Suzhou, which became operational in late 2021 and Q4 2022, respectively[77]. - The company has leased a facility of approximately 50,000 square feet in Taizhou, Jiangsu Province, for R&D and production to support clinical trials[79]. - The company has not engaged in any significant acquisitions or disposals during the reporting period[111].