Revenue Performance - The company reported revenue of RMB 313.2 million for the six months ended June 30, 2025, a decrease of 17.6% compared to RMB 379.9 million in the same period of 2024[14]. - Revenue from diagnostic outsourcing services was RMB 118.5 million, down 34.0% from RMB 179.6 million in 2024, primarily due to industry policy impacts and intensified market competition[15]. - The revenue from diagnostic testing services provided to medical alliances was RMB 180.3 million, a slight decrease of 1.1% from RMB 182.3 million in 2024[14]. - The group recorded revenue of RMB 180.3 million from diagnostic testing services provided to medical alliances, remaining stable compared to the same period in 2024, and this segment accounted for 57.6% of total revenue, an increase of approximately 9.6% year-on-year[16]. - Revenue from diagnostic testing services for non-medical institutions was RMB 14.4 million, down 20.3% year-on-year, affected by external market conditions and increased competition[41]. - The decline in overall revenue was influenced by factors such as centralized procurement, healthcare cost control, and intensified industry competition[15]. - The group recorded revenue of RMB 313.2 million for diagnostic testing services, a decrease of 17.6% compared to the same period last year[27]. - Revenue for the six months ended June 30, 2025, was RMB 313,217 thousand, a decrease of 17.6% compared to RMB 379,943 thousand for the same period in 2024[128]. Profitability and Losses - The gross profit for the period was RMB 106.4 million, representing a decrease of 17.0% from RMB 128.2 million in the previous year[14]. - The company recorded a loss before tax of RMB 55.4 million, a significant improvement of 58.0% compared to a loss of RMB 131.8 million in 2024[14]. - The loss attributable to owners of the company was RMB 55.3 million, down 56.1% from RMB 126.1 million in the same period last year[14]. - Basic and diluted loss per share was RMB 0.09, a decrease of 57.1% compared to RMB 0.21 in 2024[14]. - The net loss for the group narrowed to RMB 55.4 million, compared to a net loss of RMB 126.1 million in the same period of 2024, primarily due to improved operational and management capabilities, cost control, and reduced financial costs[16]. - The net loss attributable to shareholders for the six months ending June 30, 2025, was RMB 55,340,000, a significant improvement from a net loss of RMB 126,129,000 in the same period of 2024[179]. Cost Management - The cost of revenue was RMB 206.8 million, down 17.8% from RMB 251.7 million in the previous year[14]. - Gross profit decreased by 17.0% to RMB 106.4 million, while the overall gross margin slightly increased from 33.7% to 34.0% due to operational cost optimization[43]. - Sales expenses decreased by 41.0% from RMB 89.9 million for the six months ended June 30, 2024, to RMB 53.1 million for the six months ended June 30, 2025, due to enhanced operational and management capabilities[46]. - Administrative expenses decreased by 21.5% from RMB 99.7 million for the six months ended June 30, 2024, to RMB 78.3 million for the six months ended June 30, 2025, attributed to reduced share-based payment expenses and improved management processes[47]. - Financial asset impairment losses decreased from RMB 52.4 million for the six months ended June 30, 2024, to RMB 8.4 million for the six months ended June 30, 2025, reflecting a reduction in provisions by RMB 44.0 million[48]. - The net financial costs decreased from RMB 24.3 million for the six months ended June 30, 2024, to RMB 15.1 million for the six months ended June 30, 2025, due to optimized debt structure and improved fund management[50]. Strategic Initiatives - The company is actively optimizing its customer structure to provide better services to high-quality clients, which has led to a reduction in revenue in the short term[15]. - The group has provided multi-scenario solutions to nearly 450 medical alliances, enhancing service capabilities and promoting tiered medical service development[28]. - The group aims to cover 50% of tertiary hospitals and 30% of secondary hospitals with intelligent clinical decision support applications by 2027[25]. - The group aims to continue technological innovation and collaboration with industry partners to provide high-cost performance clinical diagnostic solutions[32]. - The implementation of the "one horizontal and one vertical" strategy has strengthened clinical empowerment and operational efficiency[26]. Market Trends and Opportunities - The healthcare industry in China is experiencing high-quality development driven by policy deepening and technological innovation, with a focus on quality, efficiency, and innovation[18]. - The third-party medical testing industry is expected to benefit from the expansion of medical alliances, creating a market space worth hundreds of billions, particularly in emerging fields like molecular diagnostics and genetic testing[20]. - The precision medicine market is in a golden development period, supported by favorable policies and rapid technological advancements, with significant growth potential in the industry[22]. - The development of Laboratory Developed Tests (LDT) is crucial for the clinical transformation of precision medicine, driven by increasing clinical demand for precise diagnostics[23]. Financial Position - Total assets as of June 30, 2025, were RMB 3,060,414 thousand, down from RMB 3,228,336 thousand at the end of 2024[132]. - Total liabilities decreased to RMB 1,957,927 thousand as of June 30, 2025, from RMB 2,078,459 thousand at the end of 2024[132]. - The company’s total equity attributable to shareholders as of June 30, 2025, included a share premium of RMB 610,349,000, unchanged from the previous period[200]. - The company’s total issued ordinary shares remained at 621,250,500 as of June 30, 2025, consistent with the previous year, with no new shares issued during the period[200]. - The company’s cash position showed a decline in bank cash from RMB 1,577,652,000 as of December 31, 2024, to RMB 1,345,889,000 as of June 30, 2025, reflecting a decrease of approximately 14.7%[199]. Employee and Governance - Total employee count decreased to 1,146 as of June 30, 2025, down from 1,459 a year earlier, with total salary costs amounting to RMB 124.6 million for the six months ended June 30, 2025[87]. - The company has adopted a restricted share unit plan to attract and retain key personnel since November 23, 2022[87]. - The company continues to adhere to the corporate governance code and has established a performance evaluation mechanism for restricted share units based on qualitative and quantitative indicators[109]. - The company has confirmed compliance with the standard code for securities trading by all directors during the reporting period[114].

遠洋服務控股有限公司 Sino-Ocean Service Holding Limited (於開曼群島註冊成立的有限公司) 股份代號:06677.HK 中期報告 | 目錄 | | | | | --- | --- | --- | --- | | 公司概覽 | ��� | 管理層討論與分析 | ��� | | 地理覆蓋範圍 | ��� | 投資者關係報告 | ��� | | 公司資料 | ��� | 可持續發展報告 | ��� | | 財務及運營摘要 | ��� | 權益披露 | ��� | | 主席報告 | ��� | 企業管治及其他資料 | ��� | | 中期簡明綜合財務報表 審閱報告 | ��� | | --- | --- | | 中期簡明綜合全面收益表 | ��� | | 中期簡明綜合財務狀況表 | ��� | | 中期簡明綜合權益變動表 | ��� | | 中期簡明綜合現金流量表 | ��� | | --- | --- | | 中期簡明綜合財務報表附註 | ��� | | 詞彙 | ��� | 2025年中期報告·遠洋服務控股有限公司 公司概覽 公司概覽 我們是一家綜合性物業管理服務商，在中國擁有廣 ...

Company Information [Board of Directors and Corporate Structure](index=3&type=section&id=Board%20of%20Directors%20and%20Corporate%20Structure) The company's board, comprising executive, non-executive, and independent directors, ensures sound corporate governance through its audit, remuneration, and nomination committees - Board members include Mr. Yang Aihua, Mr. Yang Hansong, Ms. Gao Kun, Mr. Zhao Hongliang (new Executive Director), Mr. Rob Huting, Ms. Yang Chuyu (Non-executive Directors), and Mr. Wang Jianping, Ms. Li Mochou, Mr. Yan Jun (Independent Non-executive Directors)[5](index=5&type=chunk) - Ms. Li Mochou chairs the Audit Committee, Mr. Wang Jianping chairs the Remuneration Committee, and Mr. Yang Hansong chairs the Nomination Committee[5](index=5&type=chunk) [Registration and Operating Locations](index=3&type=section&id=Registration%20and%20Operating%20Locations) Registered in Cayman Islands, the company operates from Shanghai, China, with a Hong Kong office; Ernst & Young is its auditor - The company's registered office is in the Cayman Islands, and its principal place of business and head office in China are located at 6/F, Kailong Center, No. 2251 Zhenbei Road, Putuo District, Shanghai[5](index=5&type=chunk) - The principal place of business in Hong Kong is located at Room 1917, 19/F, Lee Garden One, 33 Hysan Avenue, Causeway Bay[5](index=5&type=chunk) - The auditor is Ernst & Young, and legal advisors include Paul Hastings (Hong Kong) and Maples and Calder (Hong Kong)[5](index=5&type=chunk)[6](index=6&type=chunk) [Listing Information](index=4&type=section&id=Listing%20Information) The company's stock code is 2443, and it was listed on the Main Board of the Stock Exchange on May 31, 2024 - The company's stock code is **2443**, with a listing date of **May 31, 2024**[7](index=7&type=chunk) - The company's website is www.autostreets.com[7](index=7&type=chunk) Financial and Operational Summary [Financial Performance Overview](index=5&type=section&id=Financial%20Performance%20Overview) For the six months ended June 30, 2025, revenue decreased by 25.9% to RMB 141.8 million, gross profit declined by 27.9%, but profit for the period turned from loss to profit, increasing by 109.0% Financial Performance for the Six Months Ended June 30 | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 141,846 | 191,309 | (25.9) | | Gross Profit | 89,209 | 123,701 | (27.9) | | Gross Margin (%) | 62.9 | 64.7 | (1.8) percentage points | | Profit/(Loss) for the Period | 12,791 | (142,231) | 109.0 | [Operational Performance Overview](index=5&type=section&id=Operational%20Performance%20Overview) For the six months ended June 30, 2025, the number of used cars traded and serviced by the company decreased by 8.0% year-on-year to 174,520 vehicles Operational Performance for the Six Months Ended June 30 | Metric | 2025 (vehicles) | 2024 (vehicles) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Number of used cars traded and serviced | 174,520 | 189,591 | (8.0) | Management Discussion and Analysis [Industry and Business Review](index=6&type=section&id=Industry%20and%20Business%20Review) China's auto market saw record production and sales in the first half, but the EV-driven price war led to lower transaction prices for new and used cars, slowing used car transaction volume growth; the company responded by expanding key account business, increasing EV collaborations, optimizing auction networks, and enhancing appraiser professionalism - In the first half of 2025, China's auto production and sales both exceeded **15 million vehicles** for the first time, with domestic sales growing by **11.7%** year-on-year, including a **35.5% increase in new energy passenger vehicles** and a **1.8% decrease in fuel vehicles**[9](index=9&type=chunk) - National cumulative used car transaction volume reached **9.5701 million vehicles**, a year-on-year increase of **1.99%**, with significantly slowed growth primarily due to insufficient demand and new car price wars[9](index=9&type=chunk) - In the first half, the company signed cooperation agreements with over **twenty auto dealer groups**, including national top 100 groups and top 100 new energy dealers, becoming an auction cooperation platform for resource vehicles from several major domestic leading brand manufacturers[11](index=11&type=chunk) - As of the end of June 2025, the company had cumulatively established **82 auction centers and service outlets**, covering **329 cities** nationwide, with over **92%** of its in-house professional appraiser team employees obtaining the "Advanced Used Car Appraisal and Evaluation Specialist Certificate" qualification[12](index=12&type=chunk) [Performance by Business Segment](index=8&type=section&id=Performance%20by%20Business%20Segment) Affected by continuous new car price declines and industry downturn, the company's used car auction, value-added services, and buy-and-sell arrangement businesses experienced declines in both transaction volume and revenue, with exhibition business revenue falling to zero; the company maintained transaction rates through marketing policies, but per-vehicle revenue was impacted Key Operating Data by Business Segment | Business Segment | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | :--- | | **Used Car Auction Business** | Number of transactions (vehicles) | 74,411 | 79,439 | -6.3% | | | Average revenue per vehicle (RMB) | 1,264 | 1,678 | -24.7% | | **Used Car Value-Added Services** | Number of used cars serviced (vehicles) | 89,545 | 100,921 | -11.3% | | | Average revenue per vehicle (RMB) | 318 | 302 | +5.3% | | **Used Car Buy-and-Sell Arrangement** | Number of consumer trade-in transactions (vehicles) | 6,502 | 9,231 | -29.6% | | | Average revenue per vehicle (RMB) | 2,081 | 1,985 | +4.8% | - The transaction success rate for used car auction business increased from **45.6%** in H1 2024 to **47.2%** in H1 2025, but listing volume and transaction volume decreased by **9.4%** and **6.3%** respectively[18](index=18&type=chunk) - Exhibition business revenue decreased from **RMB 0.7 million** in H1 2024 to **zero** in H1 2025, primarily due to partners reducing marketing expenditures[21](index=21&type=chunk) [Outlook](index=9&type=section&id=Outlook) The company is committed to reshaping China's used car transaction process, planning to expand its auction network, broaden supply and buyer channels, diversify services, strengthen cooperation with new energy vehicle OEMs, enhance digital products and services, and explore strategic cooperation and acquisition opportunities - The company will expand and optimize its auction network, upgrading service facilities to strengthen management and improve service quality[23](index=23&type=chunk) - The company will strengthen cooperation with new energy vehicle OEMs and manufacturers to enhance appraisal, inspection, and transaction capabilities for new energy used cars[23](index=23&type=chunk) - The company will enhance digital products and services, establish an integrated platform for used car data and appraisal/inspection, and explore potential strategic cooperation and acquisition opportunities[23](index=23&type=chunk) [Material Events After Reporting Period](index=10&type=section&id=Material%20Events%20After%20Reporting%20Period) As of the date of this interim report, no events with a material impact on the company and its subsidiaries have occurred after the reporting period - Except as disclosed in this interim report, no events that could have a material impact on the company and its subsidiaries have occurred from the end of the reporting period to the date of this interim report[24](index=24&type=chunk) [Financial Analysis](index=10&type=section&id=Financial%20Analysis) Total company revenue decreased by 25.9% year-on-year, primarily due to reduced revenue from used car auction, value-added services, and buy-and-sell arrangement businesses; cost of sales, selling and distribution expenses, and administrative expenses all decreased, leading to lower gross profit and gross margin; profit for the period turned from a loss in the prior year to a profit, mainly benefiting from no fair value change impact and listing expense expenditures Revenue Breakdown by Business Segment | Business Segment | 2025 (RMB thousands) | 2025 (%) | 2024 (RMB thousands) | 2024 (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Used car auction commissions and service fees | 94,051 | 66.3 | 133,309 | 69.7 | -29.4 | | Used car value-added services | 28,456 | 20.1 | 33,179 | 17.3 | -14.2 | | Used car buy-and-sell arrangement | 13,534 | 9.5 | 18,326 | 9.6 | -26.1 | | Exhibition business | – | – | 721 | 0.4 | -100.0 | | Other services | 5,805 | 4.1 | 5,774 | 3.0 | +0.5 | | **Total** | **141,846** | **100.0** | **191,309** | **100.0** | **-25.9** | - Cost of sales decreased by **22.1%** year-on-year to **RMB 52.6 million**, primarily due to reduced labor costs, professional service costs, and intermediary costs as business transaction volume declined[30](index=30&type=chunk) - Administrative expenses decreased by **45.5%** year-on-year to **RMB 42.1 million**, mainly due to no listing expenses in H1 2025 and a decrease in salaries and benefits expenses resulting from a reduction in employee numbers[33](index=33&type=chunk) - Profit for the period improved by **109.0%** from a loss of **RMB 142.2 million** in H1 2024 to a profit of **RMB 12.8 million** in H1 2025, primarily attributable to no fair value change impact and listing expense expenditures[38](index=38&type=chunk)[39](index=39&type=chunk)[41](index=41&type=chunk) [Capital Management and Liquidity](index=12&type=section&id=Capital%20Management%20and%20Liquidity) The company's capital management objective is to safeguard its ability to continue as a going concern and maintain a sound capital ratio; as of June 30, 2025, cash and cash equivalents remained stable, borrowings slightly decreased, and the debt-to-asset ratio remained stable - As of June 30, 2025, cash and cash equivalents were **RMB 1,046.8 million**, a slight increase from **RMB 1,046.6 million** as of December 31, 2024[43](index=43&type=chunk) - Outstanding borrowings were **RMB 126.2 million**, a **3% decrease** from **RMB 129.5 million** as of December 31, 2024[44](index=44&type=chunk) - The debt-to-asset ratio was **23.8%**, remaining stable compared to **25.0%** as of December 31, 2024[45](index=45&type=chunk) [Investments, Acquisitions, and Asset Pledges](index=13&type=section&id=Investments%2C%20Acquisitions%2C%20and%20Asset%20Pledges) During the reporting period, the company made no material investments, acquisitions, or disposals of subsidiaries, pledged no assets, and currently has no other significant future plans for investments and capital assets - During the reporting period, the company made or held no material investments, nor any material acquisitions and/or disposals of subsidiaries[46](index=46&type=chunk)[47](index=47&type=chunk) - As of June 30, 2025, the Group had no assets pledged[48](index=48&type=chunk) - As of the date of this interim report, the company had no other significant plans for investments and capital assets[49](index=49&type=chunk) [Employees and Risk Management](index=13&type=section&id=Employees%20and%20Risk%20Management) The company's employee count decreased, but it offers competitive remuneration and training; the company's primary business is denominated in RMB, foreign currency risk is not material, and investment risk is managed through low-risk financial products - As of June 30, 2025, the company had **622 employees**, a decrease from **686** as of December 31, 2024[50](index=50&type=chunk) - Total employee benefit expenses (including directors' remuneration) were **RMB 38.2 million**, a decrease from **RMB 56.6 million** in H1 2024[50](index=50&type=chunk) - The company's primary business is conducted in RMB, with most assets and liabilities denominated in RMB, and currently considers foreign currency risk not material[52](index=52&type=chunk) - The company invests in low-risk financial products offered by licensed financial institutions and adopts internal policies and guidelines to manage investment risk[52](index=52&type=chunk) Corporate Governance and Other Information [Changes in Directors and Key Executives and Their Interests](index=14&type=section&id=Changes%20in%20Directors%20and%20Key%20Executives%20and%20Their%20Interests) Mr. Zhao Hongliang was appointed as an Executive Director, and Ms. Zhu Yi resigned as a Non-executive Director; several directors and key executives hold company shares through controlled corporations, with Mr. Yang Aihua holding the largest proportion - Mr. Zhao Hongliang was appointed as an Executive Director on **May 28, 2025**, and Ms. Zhu Yi resigned as a Non-executive Director on the same day[53](index=53&type=chunk) Interests of Directors and Key Executives in the Company's Shares (As of June 30, 2025) | Name | Position | Nature of Interest | Number of Shares Held | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | :--- | | Yang Aihua | Executive Director | Interest in controlled corporation | 100,000,000 | 12.01% | | Yang Hansong | Executive Director and Chairman | Interest in controlled corporation | 45,000,000 | 5.40% | | Gao Kun | Executive Director, CFO and Joint Company Secretary | Interest in controlled corporation | 5,000,000 | 0.60% | | Zhao Hongliang | Executive Director and CEO | Interest in controlled corporation | 7,300,000 | 0.88% | [Major Shareholders' Interests](index=15&type=section&id=Major%20Shareholders%27%20Interests) In addition to the directors, Changguang Investment Co., Ltd., Manheim Investments, Inc., World Key Investment Trading Limited, and Grand Baoxin Auto Group Co., Ltd. are major shareholders holding company shares Major Shareholders' Interests in the Company's Shares (As of June 30, 2025) | Shareholder Name/Entity | Nature of Interest | Number of Shares Held | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Changguang Investment Co., Ltd. | Beneficial owner | 100,000,000 | 12.01% | | Manheim Investments, Inc. | Beneficial owner | 90,000,000 | 10.81% | | World Key Investment Trading Limited | Beneficial owner | 45,000,000 | 5.40% | | Grand Baoxin Auto Group Co., Ltd. | Interest in controlled corporation | 62,500,000 | 7.50% | [Corporate Governance Compliance](index=17&type=section&id=Corporate%20Governance%20Compliance) The company has complied with all code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules during the reporting period and up to the date of this interim report, and directors confirmed compliance with the Model Code for Securities Transactions - The company has complied with all code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules during the reporting period and up to the date of this interim report[60](index=60&type=chunk) - Following specific enquiries made to all Directors, they confirmed compliance with the Model Code throughout the reporting period and up to the date of this interim report[63](index=63&type=chunk) [Audit Committee and Dividend Policy](index=17&type=section&id=Audit%20Committee%20and%20Dividend%20Policy) The Audit Committee has reviewed the interim results and deemed the financial statements compliant with accounting standards; the Board does not recommend an interim dividend, and the company has not engaged in any purchase, sale, or redemption of listed securities - The Audit Committee, comprising Ms. Li Mochou (Chairperson), Mr. Wang Jianping, and Mr. Yan Jun, has reviewed the Group's unaudited interim results for the six months ended June 30, 2025[64](index=64&type=chunk) - The Directors do not recommend the payment of any interim dividend for the six months ended June 30, 2025[65](index=65&type=chunk) - During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's securities listed on the Stock Exchange[66](index=66&type=chunk) [Material Litigation and Use of Proceeds from Global Offering](index=18&type=section&id=Material%20Litigation%20and%20Use%20of%20Proceeds%20from%20Global%20Offering) The company is not involved in any material litigation; net proceeds from the global offering were approximately HKD 83.0 million, with HKD 17.9 million utilized as of June 30, 2025, primarily for expanding the auction network, strengthening customer relationships, developing service portfolios, and R&D, with the remaining amount expected to be fully utilized by December 2028 - For the six months ended June 30, 2025, the company was not involved in any material litigation or arbitration[67](index=67&type=chunk) Use of Proceeds from Global Offering (As of June 30, 2025) | Purpose | Percentage (%) | Net Proceeds (HKD millions) | Amount Utilized During Reporting Period (HKD millions) | Unutilized Amount (HKD millions) | Expected Timeline for Full Utilization | | :--- | :--- | :--- | :--- | :--- | :--- | | Expanding geographical coverage of auction network | 40.0 | 33.2 | 1.0 | 31.2 | 2028 | | Strengthening relationships with existing sellers and buyers, attracting new sellers and buyers | 10.0 | 8.2 | 1.6 | 5.0 | 2028 | | Developing and diversifying service portfolio, exploring new growth areas | 15.0 | 12.5 | 2.0 | 8.5 | 2028 | | Investing in research and development | 15.0 | 12.5 | 2.9 | 7.8 | 2028 | | Establishing potential strategic partnerships and alliances with business partners, making investments and/or acquisitions | 10.0 | 8.3 | 0 | 8.3 | 2028 | | Working capital and general corporate purposes | 10.0 | 8.3 | 2.0 | 4.3 | 2028 | | **Total** | **100.0** | **83.0** | **9.5** | **65.1** | | [Interim Report Approval](index=21&type=section&id=Interim%20Report%20Approval) The Board approved and authorized the publication of the Group's interim report and unaudited interim condensed consolidated results for the six months ended June 30, 2025, on August 29, 2025 - The Board approved and authorized the publication of the Group's interim report and unaudited interim condensed consolidated results for the six months ended June 30, 2025, on **August 29, 2025**[73](index=73&type=chunk) Interim Condensed Consolidated Statement of Profit or Loss [Profit or Loss Statement Overview](index=22&type=section&id=Profit%20or%20Loss%20Statement%20Overview) For the six months ended June 30, 2025, the company's revenue was RMB 141.8 million, and gross profit was RMB 89.2 million; profit for the period was RMB 12.8 million, compared to a loss of RMB 142.2 million in the prior year, with basic and diluted earnings per share of RMB 0.01 Summary of Interim Condensed Consolidated Statement of Profit or Loss | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 141,846 | 191,309 | | Cost of revenue | (52,637) | (67,608) | | Gross profit | 89,209 | 123,701 | | Other income and gains, net | 3,775 | 4,457 | | Selling and distribution expenses | (30,460) | (39,620) | | Administrative expenses | (42,089) | (77,188) | | Other expenses | (952) | (1,552) | | Finance costs | (3,586) | (3,276) | | Share of profit/(loss) of an associate | 119 | – | | Fair value change of financial assets at FVTPL | – | 44 | | Fair value change of financial liabilities at FVTPL | – | (142,293) | | Profit/(Loss) before tax | 16,016 | (135,727) | | Income tax expense | (3,225) | (6,504) | | **Profit/(Loss) for the period** | **12,791** | **(142,231)** | | Earnings/(Loss) per share attributable to ordinary equity holders of the parent — Basic and diluted (RMB) | 0.01 | (0.19) | Interim Condensed Consolidated Statement of Comprehensive Income [Comprehensive Income Statement Overview](index=23&type=section&id=Comprehensive%20Income%20Statement%20Overview) For the six months ended June 30, 2025, the company's profit for the period was RMB 12.8 million, and after deducting other comprehensive loss of RMB 4.4 million due to exchange differences, total comprehensive income for the period was RMB 8.4 million Summary of Interim Condensed Consolidated Statement of Comprehensive Income | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit/(Loss) for the period | 12,791 | (142,231) | | Exchange differences on translation of financial statements of the company | (4,381) | (987) | | Other comprehensive loss for the period, net of tax | (4,381) | (987) | | **Total comprehensive income/(loss) for the period** | **8,410** | **(143,218)** | | Attributable to owners of the parent | 1,081 | (148,594) | | Non-controlling interests | 7,329 | 5,376 | Interim Condensed Consolidated Statement of Financial Position [Financial Position Overview](index=24&type=section&id=Financial%20Position%20Overview) As of June 30, 2025, the company's total assets were RMB 1,241.5 million, with current assets accounting for the largest proportion; total current liabilities were RMB 252.7 million, and net assets were RMB 945.9 million Summary of Interim Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total non-current assets | 81,225 | 92,074 | | Total current assets | 1,160,292 | 1,158,162 | | **Total assets** | **1,241,517** | **1,250,236** | | Total current liabilities | 252,680 | 262,285 | | Total non-current liabilities | 42,899 | 50,423 | | **Total liabilities** | **295,579** | **312,708** | | **Net assets** | **945,938** | **937,528** | | Equity attributable to owners of the parent | 927,355 | 926,274 | | Non-controlling interests | 18,583 | 11,254 | | **Total equity** | **945,938** | **937,528** | - Cash and cash equivalents as of June 30, 2025, were **RMB 1,046.8 million**, a slight increase from **RMB 1,046.6 million** as of December 31, 2024[76](index=76&type=chunk) - Trade receivables were **RMB 15.0 million**, and trade payables were **RMB 10.3 million**[76](index=76&type=chunk)[77](index=77&type=chunk) Interim Condensed Consolidated Statement of Changes in Equity [Changes in Equity Overview](index=26&type=section&id=Changes%20in%20Equity%20Overview) For the six months ended June 30, 2025, total equity increased from RMB 937.5 million at the beginning of the period to RMB 945.9 million, primarily influenced by profit for the period and an increase in non-controlling interests Summary of Interim Condensed Consolidated Statement of Changes in Equity | Metric | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total equity at beginning of period | 937,528 | 394,726 | | Profit/(Loss) for the period | 12,791 | (142,231) | | Other comprehensive loss for the period | (4,381) | (987) | | Total comprehensive income/(loss) for the period | 8,410 | (143,218) | | Shares issued from initial public offering | – | 139,118 | | Share issue expenses | – | (7,779) | | Conversion of convertible redeemable preference shares to ordinary shares | – | 516,312 | | Capital contribution from non-controlling shareholders of subsidiaries | – | 245 | | Total equity at end of period | 945,938 | 899,404 | - Equity attributable to owners of the parent increased from **RMB 926.3 million** at the beginning of the period to **RMB 927.4 million** at the end of the period, while non-controlling interests increased from **RMB 11.3 million** to **RMB 18.6 million**[78](index=78&type=chunk) Interim Condensed Consolidated Statement of Cash Flows [Cash Flow Overview](index=28&type=section&id=Cash%20Flow%20Overview) For the six months ended June 30, 2025, net cash generated from operating activities was RMB 15.1 million, net cash generated from investing activities was RMB 6.1 million, net cash used in financing activities was RMB 17.8 million, and cash and cash equivalents at period-end were RMB 1,046.8 million Summary of Interim Condensed Consolidated Statement of Cash Flows | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net cash flows from/(used in) operating activities | 15,119 | (63,623) | | Net cash flows from investing activities | 6,078 | 11,432 | | Net cash flows (used in)/from financing activities | (17,771) | 75,476 | | Net increase in cash and cash equivalents | 3,426 | 23,285 | | Cash and cash equivalents at beginning of period | 1,046,599 | 935,441 | | Net effect of exchange rate changes | (3,182) | 930 | | **Cash and cash equivalents at end of period** | **1,046,843** | **959,656** | - Operating cash flow turned from a net outflow of **RMB 63.6 million** in the prior year to a net inflow of **RMB 15.1 million**, primarily benefiting from improved profit before tax[80](index=80&type=chunk) - Financing cash flow turned from a net inflow of **RMB 75.5 million** in the prior year to a net outflow of **RMB 17.8 million**, primarily due to repayment of interest-bearing bank borrowings and lease payments[81](index=81&type=chunk) Notes to the Interim Condensed Consolidated Financial Information [Company and Group Information](index=30&type=section&id=Company%20and%20Group%20Information) Autostreets Development Limited was incorporated in the Cayman Islands on September 3, 2014, as an investment holding company primarily engaged in used car buy-and-sell arrangements and providing used car services, and was listed on the Main Board of the Stock Exchange on May 31, 2024 - The company was incorporated as an exempted company under the Companies Act of the Cayman Islands on **September 3, 2014**[82](index=82&type=chunk) - The company is an investment holding company primarily engaged in used car buy-and-sell arrangements and providing used car services[83](index=83&type=chunk) - The company's shares have been listed on the Main Board of The Stock Exchange of Hong Kong Limited since **May 31, 2024**[84](index=84&type=chunk) [Basis of Preparation and Changes in Accounting Policies](index=30&type=section&id=Basis%20of%20Preparation%20and%20Changes%20in%20Accounting%20Policies) The interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34, with accounting policies consistent with the annual consolidated financial statements, and only a few newly adopted revised IFRS accounting standards are not expected to have a material impact - The interim condensed consolidated financial information has been prepared in accordance with **International Accounting Standard 34 Interim Financial Reporting**[85](index=85&type=chunk) - The accounting policies adopted in preparing the interim condensed consolidated financial information are consistent with those applied in the preparation of the Group's annual consolidated financial statements for the year ended December 31, 2024[86](index=86&type=chunk) - The newly adopted amendments to IFRSs are not expected to have any material impact on the Group's interim condensed consolidated financial information[86](index=86&type=chunk) [Operating Segment Information](index=30&type=section&id=Operating%20Segment%20Information) As the Group's revenue, results, and total assets are derived from a single operating segment (i.e., providing transportation and related services), and all revenue and non-current assets are from China, no operating segment and geographical information is presented, and no single customer accounts for more than 10% of total revenue - The Group's revenue and reported results for the reporting period, as well as its total assets at each period end, are derived from a **single operating segment** (i.e., providing transportation and related services), thus no operating segment information is presented[87](index=87&type=chunk) - All of the Group's revenue during the period was derived from China, and all non-current assets are located in China, thus no geographical segments are presented[88](index=88&type=chunk) - The Group has a large number of customers, and during the period, no single customer's revenue accounted for more than **10%** of the Group's total revenue[89](index=89&type=chunk) [Revenue Analysis](index=31&type=section&id=Revenue%20Analysis) For the six months ended June 30, 2025, total revenue was RMB 141.8 million, primarily from used car auction commissions and service fees, followed by used car value-added services and used car buy-and-sell arrangements; most revenue is recognized at the point of sale or service completion Disaggregated Revenue Information from Contracts with Customers | Revenue Source | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Used car auction commissions and service fees | 94,051 | 133,309 | | Used car value-added service income | 28,456 | 33,179 | | Used car buy-and-sell arrangement income | 13,534 | 18,326 | | Exhibition business income | – | 721 | | Other service income | 5,805 | 5,774 | | **Total** | **141,846** | **191,309** | | Timing of revenue recognition | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | At a point in time (completion of sale or service) | 121,924 | 166,506 | | Over time (as services are provided) | 19,922 | 24,803 | | **Total** | **141,846** | **191,309** | [Components of Profit/(Loss) Before Tax](index=32&type=section&id=Components%20of%20Profit%2F%28Loss%29%20Before%20Tax) Profit/(loss) before tax is primarily influenced by various business costs, R&D costs, depreciation and amortization, fair value changes, and employee benefit expenses; the absence of fair value changes for convertible redeemable preference shares and listing expenses in H1 2025 positively impacted profit Summary of Items Deducted From/(Credited To) Profit/(Loss) Before Tax | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Cost of used car auction commissions and service fees | 43,197 | 56,254 | | Research and development costs | 6,334 | 5,309 | | Depreciation of property, plant and equipment | 2,797 | 2,888 | | Depreciation of right-of-use assets | 10,616 | 11,955 | | Fair value change of convertible redeemable preference shares | – | 142,293 | | Listing expenses | – | 26,662 | | Employee benefit expenses (including directors' remuneration) | 38,207 | 56,584 | - In H1 2025, there were no fair value changes for convertible redeemable preference shares (H1 2024: loss of **RMB 142.3 million**) and no listing expenses (H1 2024: **RMB 26.7 million**)[92](index=92&type=chunk) [Income Tax](index=33&type=section&id=Income%20Tax) For the six months ended June 30, 2025, income tax expense was RMB 3.2 million, a decrease from the prior year; Chinese subsidiaries are subject to a 25% income tax rate, with some high-tech enterprises and western development zone enterprises enjoying a 15% preferential rate, and small and micro enterprises a 20% preferential rate Summary of Income Tax Expense | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current — Mainland China: Expense for the year | 556 | 5,012 | | Underprovision in prior years | 24 | 181 | | Deferred tax | 2,645 | 1,311 | | **Total** | **3,225** | **6,504** | - Changchun Baorui International Exhibition Co., Ltd. is certified as a "High-tech Enterprise" and enjoys a **15%** preferential income tax rate[96](index=96&type=chunk) - Xinjiang Huihan Motor Vehicle Auction Service Co., Ltd. enjoys a five-year income tax exemption, followed by a five-year 50% reduction; Guizhou Xintong Used Car Auction Co., Ltd. enjoys a **15%** preferential tax rate[96](index=96&type=chunk) - Certain Chinese subsidiaries qualify as small and micro enterprises, enjoying a **20%** preferential corporate income tax rate[97](index=97&type=chunk) [Dividends and Earnings Per Share](index=34&type=section&id=Dividends%20and%20Earnings%20Per%20Share) The Board does not recommend an interim dividend; for the six months ended June 30, 2025, basic and diluted earnings per share were RMB 0.01, compared to a loss per share of RMB 0.19 in the prior year - The company's Board of Directors has resolved not to declare an interim dividend for the six months ended June 30, 2025[98](index=98&type=chunk) Calculation of Basic and Diluted Earnings/(Loss) Per Share | Metric | 2025 (RMB thousands/thousands of shares/RMB) | 2024 (RMB thousands/thousands of shares/RMB) | | :--- | :--- | :--- | | Profit/(Loss) attributable to ordinary equity holders of the parent | 5,462 | (147,607) | | Weighted average number of ordinary shares in issue for basic and diluted EPS calculation | 832,662 | 773,706 | | **Earnings/(Loss) per share — Basic and diluted** | **0.01** | **(0.19)** | [Trade Receivables and Payables](index=35&type=section&id=Trade%20Receivables%20and%20Payables) As of June 30, 2025, total trade receivables were RMB 15.0 million, all due within six months; total trade payables were RMB 10.3 million, all settled within six months and non-interest bearing Ageing Analysis of Trade Receivables (As of June 30, 2025) | Ageing | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 6 months | 15,032 | 14,376 | | 6 months to 1 year | – | 294 | | **Total** | **15,032** | **14,670** | Ageing Analysis of Trade Payables (As of June 30, 2025) | Ageing | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 6 months | 10,320 | 10,906 | | 6 months to 1 year | – | 197 | | **Total** | **10,320** | **11,103** | - Trade payables are non-interest bearing and generally settled within **15 to 120 days**[102](index=102&type=chunk) [Share Capital and Related Party Transactions](index=36&type=section&id=Share%20Capital%20and%20Related%20Party%20Transactions) The company's issued and fully paid share capital consists of 832,662,428 ordinary shares, with a share capital amount of RMB 56 thousand; the company has transactions with related parties such as Huzhou Baorui Auto Sales and Service Co., Ltd. and Shanghai Kailong Auto Group Co., Ltd. for used car value-added service costs and rental expenses, and has outstanding balances Issued and Fully Paid Share Capital | Share Capital Type | Number of Shares Issued | Share Capital (RMB thousands) | | :--- | :--- | :--- | | Ordinary shares of US$0.00001 each | 832,662,428 | 56 | Summary of Related Party Transactions (As of June 30, 2025) | Transaction Type | Related Party Name | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | :--- | | Cost of used car value-added services | Huzhou Baorui Auto Sales and Service Co., Ltd. | 143 | 92 | | Rental expenses | Shanghai Kailong Auto Group Co., Ltd. | 1,657 | 1,714 | | Rental expenses | Shanghai Longyun Property Management Co., Ltd. | 259 | 274 | Outstanding Balances with Related Parties (As of June 30, 2025) | Balance Type | Related Party Name | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | :--- | | Prepayments, transaction deposits and other receivables | Shanghai Kailong Auto Group Co., Ltd. | 2,610 | 2,610 | | Prepayments, transaction deposits and other receivables | Shanghai Longyun Property Management Co., Ltd. | 412 | 415 | | Trade payables and bills payable | Huzhou Baorui Auto Sales and Service Co., Ltd. | 88 | 122 | | Trade payables and bills payable | Ma'anshan Ruibao Auto Sales and Service Co., Ltd. | 24 | 14 | Summary of Key Management Personnel Remuneration (As of June 30, 2025) | Remuneration Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Salaries, allowances and benefits in kind | 3,611 | 4,546 | | Pension scheme contributions | 171 | 156 | | **Total** | **3,782** | **4,702** | [Fair Value of Financial Instruments and Fair Value Hierarchy](index=38&type=section&id=Fair%20Value%20of%20Financial%20Instruments%20and%20Fair%20Value%20Hierarchy) Management assesses that the fair value of most financial instruments approximates their carrying amounts; financial assets measured at fair value through profit or loss are primarily bank-issued financial products, classified as Level 2 in the fair value hierarchy - Management has assessed cash and cash equivalents, trade receivables, financial assets included in prepayments, transaction deposits and other receivables, financial liabilities included in other payables and accrued charges, and interest-bearing borrowings, determining that their fair values approximate their carrying amounts[107](index=107&type=chunk) - The Group's unlisted investments refer to financial products issued by banks, with fair value estimated using a discounted cash flow valuation model[108](index=108&type=chunk) Assets Measured at Fair Value (As of June 30, 2025) | Item | Quoted prices in active markets (Level 1) (RMB thousands) | Significant observable inputs (Level 2) (RMB thousands) | Significant unobservable inputs (Level 3) (RMB thousands) | Total (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Financial assets at fair value through profit or loss | – | 4,000 | – | 4,000 | - As of June 30, 2025, and December 31, 2024, the Group had no financial liabilities measured at fair value[109](index=109&type=chunk) [Events After Reporting Period](index=39&type=section&id=Events%20After%20Reporting%20Period) As of the date of this interim report, no material events have occurred after June 30, 2025 - No material events have occurred after **June 30, 2025**[110](index=110&type=chunk) Definitions [Definitions of Key Terms](index=40&type=section&id=Definitions%20of%20Key%20Terms) This section provides definitions for key terms used in the report, including ADMS System, Auction, Contact Person, Audit Committee, Board, China, Company, Corporate Governance Code, Directors, Electric Vehicle, Group, HKD, Hong Kong, IAS, IFRS, Listing, Listing Date, Listing Rules, Main Board, Model Code, OEM, Prospectus, Reporting Period, Professional Buyer, RMB, SFO, Shares, Shareholders, Stock Exchange, Subsidiary, Substantial Shareholder, Trade-in, and Used Car - "ADMS System" refers to the company's proprietary used car management system, designed to assist dealer groups in managing used car inventory, improving efficiency, and profitability[111](index=111&type=chunk) - "The Group" or "we" refers to the company and its subsidiaries from time to time[111](index=111&type=chunk) - "Used car" refers to a used passenger vehicle, meaning a motor vehicle designed and constructed primarily for the carriage of passengers, generally not exceeding eight seats in addition to the driver's seat[112](index=112&type=chunk)

中期報告 2025 中期報告 HEVOL SERVICES GROUP CO. LIMITED 和泓服務集團有限公司 INTERIM REPORT 2025 目錄 | 2 | 公司資料 | | --- | --- | | 4 | 主席致辭 | | 7 | 管理層討論與分析 | | 21 | 企業管治及其他資料 | | 28 | 簡明綜合損益及其他全面收益表 | | 30 | 簡明綜合財務狀況表 | | 32 | 簡明綜合權益變動表 | | 33 | 簡明綜合現金流量表 | 34 簡明綜合財務報表附註 公司資料 董事會 執行董事 王文浩先生 （行政總裁） 胡洪芳女士 非執行董事 劉江先生 （主席） 周煒先生 獨立非執行董事 錢紅驥先生 李永瑞博士 范智超先生 陳磊博士 審核委員會 范智超先生 （主席） 錢紅驥先生 陳磊博士 薪酬委員會 李永瑞博士 （主席） 錢紅驥先生 陳磊博士 提名委員會 李永瑞博士 （主席） 錢紅驥先生 胡洪芳女士 公司秘書 李立強先生 （香港執業會計師） 授權代表 王文浩先生 李立強先生 註冊辦事處 PO Box 309 Ugland House Grand Cayman, KY1-110 ...

1 第一拖拉機股份有限公司 2025 中期報告 重要提示 公司第九屆董事會第三十八次會議審議通過了公司2025年中期利潤分配方案：以實施權益分派股權登記日的 總股本為基數，向全體股東每10股派發現金紅利人民幣0.6844元（含稅）。截止2025年8月28日，公司現有總股 本1,123,645,275股，在實施權益分派的股權登記日前公司總股本發生變動的，維持每股分配金額不變，相應 調整利潤分配總額。 六、 前瞻性陳述的風險聲明 本報告涉及的本公司發展戰略、經營計劃等前瞻性陳述不構成本公司對投資者的實質承諾，敬請投資者注意 風險。 七、 是否存在被控股股東及其他關聯方非經營性佔用資金情況 否 八、 是否存在違反規定決策程序對外提供擔保的情況 否 九、 是否存在半數以上董事無法保證公司所披露半年度報告的真實性、準確性和完整性 否 十、 重大風險提示 詳見本報告第三節《管理層討論與分析》 十一、 報告期後事項 除上述事件外，截至本報告日期，本公司或本集團於2025年6月30日後並無發生任何重大後續事件。 一、 本公司董事會、監事會及董事、監事、高級管理人員保證半年度報告內容的真實性、準確性、完整性，不存在 虛假記載、 ...

[Company Information](index=4&type=section&id=Company%20Information) [Board of Directors and Corporate Governance Committee](index=4&type=section&id=Board%20of%20Directors%20and%20Corporate%20Governance%20Committee) The company's board members changed during the reporting period, with Executive Director Mr. Chen Wei resigning and Mr. Huang Dachun and Mr. Zhu Bing being appointed, while audit, remuneration, and nomination committees ensure effective corporate governance - Executive Director changes: Mr. Huang Dachun and Mr. Zhu Bing were appointed Executive Directors on **June 3, 2025**, while Mr. Chen Wei resigned on the same day[6](index=6&type=chunk)[7](index=7&type=chunk) - The company has an Audit Committee (Chairman: Mr. Wu Ronghui), Remuneration Committee (Chairman: Mr. Shen Zhenchang), and Nomination Committee (Chairman: Mr. Sun Jiong) to oversee operations and governance[6](index=6&type=chunk)[7](index=7&type=chunk)[8](index=8&type=chunk) [Company Basic Information](index=5&type=section&id=Company%20Basic%20Information) The company is registered in the Cayman Islands, with its China headquarters in Huzhou, Zhejiang, and Hong Kong operations in Kowloon, listed under stock code 2226, with key banking and legal advisor information provided - Registered office is in the Cayman Islands, China headquarters and principal place of business in Huzhou, Zhejiang, and Hong Kong principal place of business in Kowloon[10](index=10&type=chunk)[11](index=11&type=chunk) - Company stock code is **2226**, website is http://www.hzlaohenghe.com[13](index=13&type=chunk) [Management Discussion and Analysis](index=7&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=7&type=section&id=Business%20Review) As a leading Chinese condiment producer, the company achieved organic and FSSC22000 certifications and participated in industry standard revisions in H1 2025, enhancing competitiveness through quality, innovation, and channel reform despite slower consumer recovery and intensified competition - Lao Heng He yellow wine, soy sauce, fermented bean curd, rose rice vinegar, and other products successfully obtained **organic product certification**[18](index=18&type=chunk) - Subsidiary Huzhou Lao Heng He Winery Co., Ltd. obtained **FSSC22000 system certification** and was recognized as a **'Tax Outstanding Contribution Enterprise' for 2024**[18](index=18&type=chunk) - The company actively participated in revising the Zhejiang Manufacturing Standard for 'Shaoxing Fermented Bean Curd' and the Group Standard for 'Rose Rice Vinegar'[18](index=18&type=chunk) - Market challenges in H1 2025: consumer recovery fell short of expectations, catering procurement contracted, and intensified homogenization in the condiment industry led to **pressure on terminal prices** and **narrowed industry gross margins**[19](index=19&type=chunk) [Market Strategy and Promotion](index=8&type=section&id=Market%20Strategy%20and%20Promotion) In H1 2025, the company strengthened premium product packaging, promotional planning, and online/offline channel deployment, implementing multi-level strategies to build core markets and model stores, deepen supermarket and online channels, and enhance customer loyalty with a 'heritage brand, flagship product, premium, and high-value' strategy - Strengthened **premium product packaging**, promotional activity planning, online media platform layout, and offline key channel promotion[20](index=20&type=chunk)[22](index=22&type=chunk) - Implemented multi-level, multi-channel strategies, building core markets and model stores, deepening supermarket and online channels, concentrating resources on promoting flagship products, and enhancing customer loyalty[20](index=20&type=chunk)[22](index=22&type=chunk) - Adopted a strategy of **'heritage brand, flagship product, premium, and high-value national Chinese time-honored products'**, leveraging brand history and quality assurance to dominate the diversified condiment product market[20](index=20&type=chunk)[22](index=22&type=chunk) [Product Research and Development and Quality](index=8&type=section&id=Product%20Research%20and%20Development%20and%20Quality) The company continuously invests in product R&D and quality control, forming research teams, collaborating with universities on brewing theory, developing new products, and improving production line processes, while enhancing food safety and product quality through equipment acquisition, employee training, and a digital traceability system - Formed an external technical expert R&D team, established a comprehensive product R&D system and process, and collaborated with universities on brewing theory research[21](index=21&type=chunk)[23](index=23&type=chunk) - Successfully developed new products and improved the production process for new soy sauce and soybean paste production lines, which were successfully put into operation[21](index=21&type=chunk)[23](index=23&type=chunk) - Strengthened food safety technical assurance capabilities by acquiring testing instruments, enhancing employee training, establishing a **full-process digital food safety traceability system**, and developing emergency plans[21](index=21&type=chunk)[23](index=23&type=chunk) [Production Plant Management](index=9&type=section&id=Production%20Plant%20Management) In H1 2025, the company upgraded existing equipment, refined processes, established standardized systems, and acquired new machinery to improve labor efficiency and reduce production costs, thereby enhancing product market competitiveness - Upgraded and renovated existing equipment, refined and innovated processes, established standardized systems, and optimized operational procedures[24](index=24&type=chunk)[27](index=27&type=chunk) - Acquired some equipment to **improve workshop labor efficiency**, **reduce production costs**, and enhance core product competitiveness[24](index=24&type=chunk)[27](index=27&type=chunk) [Financial Review](index=13&type=section&id=Financial%20Review) In H1 2025, the company's revenue remained flat year-on-year, but gross profit and margin declined due to product mix adjustments and increased promotions, leading to a 1.6% increase in loss attributable to ordinary equity holders and a higher net loss margin, facing risks from rising production costs, intensified competition, and new product market acceptance H1 2025 Key Financial Indicators (RMB thousand) | Indicator | H1 2025 | H1 2024 | Period-on-period change (%) | | :--- | :--- | :--- | :--- | | Revenue | 144,422 | 144,277 | 0.1 | | Gross Profit | 42,055 | 47,108 | (10.7) | | Loss Attributable to Ordinary Equity Holders of the Company | (251,677) | (247,604) | 1.6 | | Loss Before Interest, Tax, Depreciation and Amortisation (LBITDA) | (138,156) | (132,196) | 4.5 | | Loss Per Share (RMB) | (0.43) | (0.43) | 0 | | Gross Margin (%) | 29.1 | 32.7 | (11.0) | | Net Loss Margin Attributable to Ordinary Equity Holders of the Company (%) | (174.3) | (171.6) | 1.6 | | LBITDA Loss Margin (%) | (95.7) | (91.6) | 4.5 | | Capital Gearing Ratio (%) (2025/06/30 vs 2024/12/31) | 427.8 | 393.5 | 8.7 | - Profitability is influenced by **product pricing**, **cost of sales**, **marketing strategies**, **product structure and mix**, and **company reform factors**[30](index=30&type=chunk)[32](index=32&type=chunk) - Risks include: **significant increases in production costs** (agricultural products, packaging, labor), **changing consumer habits** and multi-channel competition, higher-than-expected market expansion and selling expenses, **low market acceptance for new products**, difficulties faced by distributors leading to complex sales policies and credit management, and uncertainties from the new economic landscape[30](index=30&type=chunk)[32](index=32&type=chunk) [Revenue](index=14&type=section&id=Revenue) In H1 2025, total revenue was approximately **RMB 144.4 million**, flat year-on-year, with cooking wine revenue growing **4.0%** to **RMB 95.9 million** (66.4% of total), while soy sauce, rice vinegar, and other products revenue decreased **6.9%** to **RMB 48.5 million** H1 2025 Revenue Composition (RMB million) | Product Category | H1 2025 | H1 2024 | Period-on-period change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 144.4 | 144.3 | 0.1 | | Cooking Wine Products Revenue | 95.9 | 92.2 | 4.0 | | Soy Sauce, Rice Vinegar and Other Products Revenue | 48.5 | 52.1 | (6.9) | - Cooking wine product revenue growth was primarily driven by **new product launches**, **optimization of existing product structure**, and **increased promotional efforts**[46](index=46&type=chunk)[54](index=54&type=chunk) - The decline in soy sauce, rice vinegar, and other product revenue was due to **product portfolio adjustments**, reducing the production of underperforming products[47](index=47&type=chunk)[50](index=50&type=chunk) [Cost of Sales](index=14&type=section&id=Cost%20of%20Sales) Cost of sales increased by **5.3%** to **RMB 102.4 million** in H1 2025, primarily due to a higher proportion of lower-margin mid-range products sold Cost of Sales (RMB million) | Indicator | H1 2025 | H1 2024 | Period-on-period change (%) | | :--- | :--- | :--- | :--- | | Cost of Sales | 102.4 | 97.2 | 5.3 | - The increase in cost of sales was mainly attributable to a **higher proportion of lower-margin mid-range products** in revenue[48](index=48&type=chunk)[51](index=51&type=chunk) [Gross

[Company Information](index=3&type=section&id=Company%20Information) This section outlines Metamedia Holdings Limited's basic information, including board members, committee compositions, key operational contacts, and registration details, showcasing its core management and operational framework [Company Basic Information and Governance Structure](index=3&type=section&id=Company%20Basic%20Information%20and%20Governance%20Structure) This section outlines Metamedia Holdings Limited's basic information, including board members, committee compositions, key operational contacts, and registration details, showcasing its core management and operational framework - Mr. Shao Zhong serves as Chairman and Chief Executive Officer, with the Board comprising three independent non-executive directors[5](index=5&type=chunk) - The company is registered in the Cayman Islands, with stock code **72** and website www.metamediahldg.com[6](index=6&type=chunk) [Management Discussion and Analysis](index=5&type=section&id=Management%20Discussion%20and%20Analysis) [Performance Overview](index=5&type=section&id=%E6%A5%AD%E7%B8%BE%E6%A6%82%E8%A6%81) For the six months ended June 30, 2025, Metamedia Holdings Limited achieved stable overall EBITDA performance amid a challenging global economic backdrop, driven by business model innovation and cost control, with profit growth in the digital platform business; excluding the one-off lease termination gain in H1 2024, the operating loss for the current period narrowed year-on-year H1 2025 Segment Performance Overview (RMB thousands) | Metric | Art Platform (2025) | Digital Platform (2025) | Total (2025) | Art Platform (2024) | Digital Platform (2024) | Total (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Reportable Segment Revenue (RMB thousands) | 84,886 | 84,802 | 169,688 | 97,497 | 63,969 | 161,466 | | Reportable Segment (Loss) / Profit (RMB thousands) | (29,541) | 17,992 | (11,549) | (19,193) | 7,895 | (11,298) | | Segment EBITDA (RMB thousands) | (21,840) | 23,048 | 1,208 | (7,249) | 15,735 | 8,486 | - In H1 2025, the Group's overall EBITDA was **RMB 1,208 thousand**, a decrease from **RMB 8,486 thousand** in H1 2024, but digital platform EBITDA increased from **RMB 15,735 thousand** to **RMB 23,048 thousand**, achieving profit growth[8](index=8&type=chunk) - The Group recorded a one-off lease termination gain in H1 2024 due to strategic transformation of its art spaces; excluding this non-recurring item, the operating loss for the current period narrowed year-on-year[8](index=8&type=chunk) [Business Review](index=6&type=section&id=%28A%29%20%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) Over the past three decades, the Group successfully transformed from traditional media 'Modern Media' to 'Metamedia Holdings', continuously innovating in print publishing, digital platforms, and art marketing, now actively embracing AI technology to reconstruct the content industry chain, transitioning from PGC to UGC and AIGC, and expanding its international influence in the art market [Group Strategic Transformation and Development](index=6&type=section&id=%E9%9B%86%E5%9C%98%E6%88%B0%E7%95%A5%E8%BD%89%E5%9E%8B%E8%88%87%E7%99%BC%E5%B1%95) Since its renaming in 2022, Metamedia Holdings Limited has deepened its strategic direction of 'Art and Technology Reshaping the Future of Business', achieving a leap from traditional print media to 'smart media' by strengthening proprietary IPs, expanding into international art markets, launching the AI application 'Shao.ai', and developing a global online art website, aiming to connect Eastern and Western wisdom and promote the digitalization of the art market - In 2022, 'Modern Media' officially rebranded as 'Metamedia Holdings', marking a new development phase for the Group, committed to reshaping the future of business with art and technology[11](index=11&type=chunk)[12](index=12&type=chunk) - The Group has achieved a critical transformation from PGC (Professional Generated Content) to UGC (User Generated Content) and further to AIGC (Artificial Intelligence Generated Content), launching the AI application 'Shao.ai'[12](index=12&type=chunk)[13](index=13&type=chunk) - The Group is developing a global online art website aimed at connecting art enthusiasts, collectors, galleries, museums, and artists, thereby promoting the digitalization of the art market[13](index=13&type=chunk) [Digital Platform Business](index=7&type=section&id=%E6%95%B8%E7%A2%BC%E5%B9%B3%E5%8F%B0%E6%A5%AD%E5%8B%99) The Group's digital platform business revenue continues to grow, primarily from established mobile applications and website platforms such as 'iWeekly Weekend Pictorial', 'InStyle iLady', 'Bloomberg Businessweek Chinese Edition', and 'NOWNESS'; the 'NOWNESS' app has accumulated over **13 million** downloads, and its short film 'Stiff Neck' won the Golden Leopard for Best Short Film at the Locarno International Film Festival, showcasing its 'Global Vision, Local Culture' positioning and international influence - Digital platform revenue increased to varying degrees during the interim period, primarily from platforms such as 'iWeekly Weekend Pictorial', 'InStyle iLady', 'Bloomberg Businessweek Chinese Edition', and 'NOWNESS'[14](index=14&type=chunk) - The 'NOWNESS' application has accumulated over **13 million** downloads, and its Chinese team's short film 'Stiff Neck' won the Golden Leopard for Best Short Film at the Locarno International Film Festival[15](index=15&type=chunk) - The 'NOWNESS' Talent Project has successfully held six editions, aiming to discover and showcase the video works of China's new generation of filmmakers[16](index=16&type=chunk) [Art Platform Business](index=8&type=section&id=%E8%97%9D%E8%A1%93%E5%B9%B3%E5%8F%B0%E6%A5%AD%E5%8B%99) The Group's art platform business integrates brands with art through art marketing, enhancing brand taste and spiritual value; recently, the Group partnered with Art Basel Hong Kong, successfully hosted the inaugural Shanghai International Contemporary Photography Festival, and collaborated with the V&A Museum to present the 'Horst: Photographer of Style' exhibition; additionally, the Group is collaborating with Shanghai Zhangyuan to explore new models of commercial space and art integration, and continues to publish the 'Art Review' Top 100 Art Power list - The Group has established a media partnership with Art Basel Hong Kong, providing comprehensive communication support[18](index=18&type=chunk) - In May 2025, the Group successfully hosted the inaugural Shanghai International Contemporary Photography Festival (SICPF), themed 'The Era of Speaking Through Images', in collaboration with nearly **20** art institutions[19](index=19&type=chunk) - The Group is collaborating with Shanghai Zhangyuan to create an innovative business model integrating commerce and art, promoting a new trendy cultural lifestyle with the 'Space Zine' concept[21](index=21&type=chunk) [Business Outlook](index=10&type=section&id=%28B%29%20%E6%A5%AD%E5%8B%99%E5%B1%95%E6%9C%9B) Metamedia Holdings Limited's future vision is 'Beyond The Future', committed to reshaping the business future with art and technology, and reconstructing value with IP and ecosystems; the Group will fully implement the strategy of 'infusing art with AI technology and AI technology with art', and has launched the AI platform MC2; internationally, the Group plans to strengthen cooperation with Montgomery Group to host the Tokyo Contemporary Art Fair in September 2025 and expand into the Japanese market, aiming to become a global leading content enablement company - The Group's vision is 'Beyond The Future', advocating for new ideas, new technologies, and new actions to enter a new era, transforming itself into a trans-boundary and trans-cultural media group[23](index=23&type=chunk) - The Group's strategic choice and deployment is 'infusing art with AI technology and AI technology with art', and it officially launched the MC2 global website and social media platforms in July 2025, fully entering the intelligent AI era[24](index=24&type=chunk) - The Group plans to strengthen cooperation with Montgomery Group to host the Tokyo Contemporary Art Fair in September 2025 and actively expand into the Japanese market to enhance its international influence[25](index=25&type=chunk) [Dividends](index=12&type=section&id=%E8%82%A1%E6%81%AF) To conserve financial resources for market challenges, the Board does not recommend paying any interim dividend for the six months ended June 30, 2025 (nil for the corresponding period in 2024); the Board will consider a final dividend after assessing the full-year financial performance for 2025 - The Board does not recommend paying an interim dividend for H1 2025, consistent with H1 2024[28](index=28&type=chunk) - The Board will consider a final dividend after assessing the full-year financial performance for 2025[28](index=28&type=chunk) [Liquidity and Financial Resources](index=12&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) For the six months ended June 30, 2025, the Group recorded net cash inflow from operating activities of approximately **RMB 2,000 thousand** and net cash outflow

Financial Performance - Revenue for the six months ended June 30, 2025, was HK$11,453,000, a decrease of 14.4% compared to HK$13,383,000 for the same period in 2024[14] - Direct operating expenses increased to HK$970,000, up from HK$516,000, resulting in a gross profit of HK$10,483,000, down from HK$12,867,000[14] - The net changes in fair value of investment properties resulted in a loss of HK$169,900,000, compared to a loss of HK$67,880,000 in the previous year[14] - Loss before taxation for the period was HK$164,629,000, significantly higher than the loss of HK$60,226,000 for the same period last year[14] - The total comprehensive expense for the period was HK$196,093,000, compared to HK$85,492,000 in the prior year[14] - Basic and diluted loss per share was HK$42.83 cents, compared to HK$15.87 cents for the same period in 2024[14] - For the six months ended June 30, 2025, the loss attributable to owners of the company was HK$165,381,000, compared to a loss of HK$61,271,000 for the same period in 2024, representing an increase in loss of approximately 170%[53] - The Group's loss per share for the six months ended June 30, 2025, was HK$0.4283, an increase of approximately HK$0.2696 compared to HK$0.1587 in 2024[150] Assets and Liabilities - Non-current assets decreased to HK$475,150,000 from HK$671,270,000 as of December 31, 2024[18] - Current liabilities decreased to HK$66,925,000 from HK$89,489,000[18] - Net assets as of June 30, 2025, were HK$411,880,000, down from HK$607,973,000 at the end of 2024[18] - Total equity decreased to HK$411,880,000 from HK$607,973,000, reflecting a significant decline in reserves[18] - As of June 30, 2025, the Group had net current liabilities of approximately HK$58.7 million, indicating material uncertainty regarding its ability to continue as a going concern[31][32] - The cash and cash equivalents at the end of the period decreased to HK$7.275 million from HK$75.352 million at the end of June 2024[27] - The Group's total debt-to-equity ratio as of June 30, 2025, was approximately 14.6%, down from approximately 21.7% as of December 31, 2024[163] Cash Flow - Cash generated from operations for the six months ended June 30, 2025, was HK$6.527 million, a decrease from HK$7.484 million in the same period of 2024[27] - The net cash used in investing activities was HK$4.163 million, compared to HK$5.005 million in the previous year[27] - The Group's net cash from financing activities was a negative HK$74.450 million, significantly down from a positive HK$30.275 million in the prior year[27] - The Group's operating activities generated a net cash of HK$6.493 million, down from HK$7.433 million in the previous year[27] - Interest received decreased to HK$722,000 from HK$1.210 million year-over-year[27] Investment Properties - The fair value of investment properties decreased from HK$604,080,000 at the beginning of the period to HK$434,180,000 at the end of the period, reflecting a net decrease in fair value of HK$169,900,000[57] - The carrying value of land in Hong Kong as of June 30, 2025, was HK$434,180,000, down from HK$604,080,000 as of December 31, 2024[58] - The Group's investment property portfolio consists of 38 properties in Hong Kong, with a total market value of approximately HK$434.2 million as of 30 June 2025, down from HK$604.1 million as of 31 December 2024[132] - The Group's investment properties experienced a net decrease in fair value of approximately HK$169.9 million during the Period, compared to a decrease of approximately HK$67.9 million in 2024[140][141] Financing and Debt - The Group fully repaid all bank loans as of June 30, 2025, which were HK$124,588,000 as of December 31, 2024[90] - The Group borrowed HK$60 million from Morning Star Industrial Company Ltd, controlled by the Company's major shareholder, to fully repay existing bank loans[126] - The loan from Morning Star is unsecured, with an interest rate of 0.73% per annum, and interest expenses for the period were approximately HK$49,000[127] Share Capital and Dividends - No dividends were paid, declared, or proposed for the six months ended June 30, 2025, consistent with 2024[55] - The issued and fully paid ordinary shares amounted to 386,175,758 shares, with a total value of HK$3,861,757,000[101] - The authorized share capital remains at 1,000,000,000 shares with a par value of HK$0.01 each[101] Operational Insights - The Group's operating activities are focused on a single segment of property investment, with no separate financial information available for performance assessment by location[39] - The Group is facing challenges in the retail property segment due to rising vacancy rates and declining rents, with retailers adopting a more cautious approach to expansion[145] - The Group's diverse tenant pool has helped maintain high occupancy rates despite the challenging market conditions[147] - The Group will continue to monitor economic developments and adjust rental policies accordingly to support tenants during difficult times[147] Employee and Management Information - The Group employed a total of seven employees as of June 30, 2025, unchanged from December 31, 2024[183] - The Directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025[185] Share Option Scheme - The Company has adopted a share option scheme (the "2025 Scheme") approved by shareholders on June 12, 2025, allowing the Board to grant options to eligible participants[198] - The maximum number of shares that may be issued under the 2025 Scheme is capped at 10% of the issued shares, totaling 38,617,575 shares[200] - The purpose of the 2025 Scheme is to reward participants and align their interests with those of shareholders[198]

Sales Performance - In the first half of 2025, Sisram Medical achieved a 7.1% year-on-year growth in international sales channels, demonstrating resilience despite macroeconomic challenges [20]. - The company reported a significant 17.6% double-digit growth in the Asia-Pacific market, driven by strong performance in Thailand and South Korea [20]. - Revenue for the six months ended June 30, 2025, was $165,476,000, a decrease of 1.5% compared to $168,730,000 for the same period in 2024 [99]. - Revenue from the medical aesthetics product line was $137.7 million, accounting for 83.2% of total revenue, down 7.8% from $149.3 million in the previous year, influenced by economic challenges in North America, the Middle East, and Africa [55]. - Revenue from the Asia-Pacific region increased to $65,825,000, up 17.7% from $55,953,000 in the prior year [114]. - North America revenue decreased by 15.6% to $56.6 million compared to $67.0 million in the same period last year, attributed to high interest rates and weak consumer demand [58]. Product Development and Innovation - The launch of Universkin, an AI-powered personalized skincare system, has gained rapid market recognition in North America, enhancing long-term customer relationships and retention [18]. - Alma IQTM, a smart imaging device, has received positive feedback globally, improving diagnostic accuracy and overall patient experience [18]. - The company is preparing for the launch of its patented long-acting botulinum toxin product, DaxibotulinumtoxinA, in mainland China, including the establishment of a professional sales team [19]. - The strategic partnership with Hallura for the commercialization of innovative hyaluronic acid and biostimulant combination products is progressing well [18]. - The company is actively commercializing the injectable A-type botulinum toxin product, DaxibotulinumtoxinA-lanm, in collaboration with Fosun [44]. - The company plans to launch the world's first peptide-powered botulinum toxin product in mainland China and expand its energy source equipment offerings in the Chinese market [52]. Financial Performance - For the first half of 2025, the total revenue was $165.5 million, a decrease of 1.9% compared to the same period in 2024 [28]. - Gross profit for the first half of 2025 was $99.3 million, down 5.7% year-over-year, with a gross margin of 60.0%, a decline of 2.4 percentage points from 62.4% in 2024 [28]. - The company achieved a profit before tax of $11.8 million and a net profit of $9.0 million for the first half of 2025, representing decreases of 19.9% and 31.9% respectively compared to the same period in 2024 [28]. - Adjusted net profit for the first half of 2025 was $12.0 million, down 28.1% year-over-year, with an adjusted net profit margin of 7.2%, a decrease of 2.7 percentage points from 2024 [29]. - The company reported a solid order reserve as of June 30, 2025, with an increase of several million dollars compared to the same period in 2024 [53]. - The company anticipates stronger performance in revenue and net profit in the second half of 2025 compared to the first half, supported by increased order volumes and the expected launch of a patented long-acting botulinum toxin product in mainland China [22]. Strategic Initiatives - Sisram Medical continues to focus on integrating technology and product offerings, enhancing its core energy source and injection filling businesses [10]. - The company is advancing its ecological layout by promoting a beauty and health ecosystem, integrating medical and consumer scenarios [12]. - The company aims to build a global aesthetic medical ecosystem platform, focusing on unmet clinical needs and accelerating the transformation from R&D to market [16]. - The company is focusing on strategic capacity expansion to meet the growing global demand, particularly for core medical energy source equipment products [47]. - The company plans to accelerate the sales promotion of the Revanesse series of dermal fillers in the UK, Ireland, DACH region, Australia, and New Zealand, while expanding the Profhilo flagship bioremodeling therapy in various Asian markets [23]. Cash Flow and Financial Position - Cash and bank balances stood at $60.3 million as of June 30, 2025, compared to $70.2 million at the end of 2024, indicating a need for careful cash management [26]. - The net cash flow used in operating activities for the six months ended June 30, 2025, was $(4,891,000), compared to $3,961,000 for the same period in 2024, showing a decline of 223.5% [108]. - The total assets as of June 30, 2025, were $633.3 million, with total liabilities of $145.6 million, reflecting a solid financial position [26]. - The company reported R&D expenses of $8.1 million during the reporting period [33]. - The company raised $18,650,000 in new bank loans during the six months ended June 30, 2025, compared to $2,828,000 in the same period of 2024 [108]. Market Trends and Challenges - The company’s operating performance is sensitive to foreign currency exchange rate changes, particularly due to its revenue being primarily in USD and costs in multiple currencies [96]. - The direct sales strategy in the Asia-Pacific region has shown significant improvement, particularly in Thailand and South Korea [42]. - The company is enhancing its global customer relationship management (CRM) system and investing in data analytics to improve customer support and supply chain management [48]. - The company has made significant progress in intellectual property, including multiple new patents in the fields of radiofrequency and ultrasound [38]. - The company is exploring partnerships with international firms to enhance its global footprint [163].

Corporate Information This section outlines the company's fundamental corporate details, including its governance structure, key professional advisors, and contact information [The Board](index=3&type=section&id=The%20Board) This section lists the composition of the company's Board of Directors, including executive directors, independent non-executive directors, and members of the audit, nomination, and remuneration committees, with Mr. Sun Guangjun serving as the Chairman and Chief Executive Officer of the Board - Executive Directors include **Mr. Sun Guangjun** (Chairman and Chief Executive Officer) and **Mr. Yang Hong**[3](index=3&type=chunk) - Independent Non-Executive Directors are **Mr. Lau Man Tak**, **Ms. Lam Fung**, and **Mr. Ngan Wing Ho**[3](index=3&type=chunk) - The Audit Committee Chairman is **Mr. Lau Man Tak**, the Remuneration Committee Chairman is **Ms. Lam Fung**, and the Nomination Committee Chairman is **Mr. Sun Guangjun**[3](index=3&type=chunk)[4](index=4&type=chunk) [Auditor](index=3&type=section&id=Auditor) The company's auditor is Rongcheng (Hong Kong) Certified Public Accountants Limited, with its office located in Admiralty, Hong Kong - The auditor is **Rongcheng (Hong Kong) Certified Public Accountants Limited** (formerly Ascent Partners CPA Limited)[4](index=4&type=chunk)[5](index=5&type=chunk) [Registered Office and Principal Places of Business](index=4&type=section&id=Registered%20Office%20and%20Principal%20Places%20of%20Business) The company maintains a registered office in the Cayman Islands, its headquarters and principal place of business in Shanghai, China, and a principal place of business in Hong Kong - The registered office in the Cayman Islands is located at **71 Fort Street, PO Box 500, George Town, Grand Cayman KY1-1106**[6](index=6&type=chunk)[7](index=7&type=chunk) - The headquarters and principal place of business in China are located at **2nd to 3rd Floor, Building 6, No. 652 Changshou Road, Putuo District, Shanghai**[6](index=6&type=chunk)[7](index=7&type=chunk) - The principal place of business in Hong Kong is located at **Unit 1202, 12th Floor, Dah Sing Life Building, 90 Connaught Road Central, Sheung Wan**[6](index=6&type=chunk)[7](index=7&type=chunk) [Legal Adviser](index=4&type=section&id=Legal%20Adviser) The company has appointed Chow & Cheung, Solicitors in association with Beijing Tongshang Law Firm as its legal adviser for Hong Kong law - Hong Kong legal adviser is **Chow & Cheung, Solicitors in association with Beijing Tongshang Law Firm**[6](index=6&type=chunk)[7](index=7&type=chunk) [Share Registrars](index=4&type=section&id=Share%20Registrars) The company maintains a principal share registrar in the Cayman Islands and a share registrar in Hong Kong - The principal share registrar is **Appleby Global Services (Cayman) Limited**[7](index=7&type=chunk) - The Hong Kong share registrar is **Tricor Investor Services Limited**[8](index=8&type=chunk)[9](index=9&type=chunk) [Principal Banks](index=5&type=section&id=Principal%20Banks) The company's principal banks include China Merchants Bank Shanghai Caoyang Sub-branch, Bank of China (Hong Kong) Limited, and CMB Wing Lung Bank - Principal banks include **China Merchants Bank Shanghai Caoyang Sub-branch**, **Bank of China (Hong Kong) Limited**, and **CMB Wing Lung Bank**[8](index=8&type=chunk)[9](index=9&type=chunk) [Company Website and Stock Code](index=5&type=section&id=Company%20Website%20and%20Stock%20Code) The company's website is www.plscn.com and its stock code is 2486 - The company's website is **www.plscn.com**[8](index=8&type=chunk)[9](index=9&type=chunk) - The stock code is **2486**[8](index=8&type=chunk)[9](index=9&type=chunk) Definitions This section provides definitions for key terms used throughout the report, covering corporate governance, financial reporting standards, geographical areas, equity structure, and business models for clear understanding - **"The Company"** refers to Plus Group Holdings Limited, incorporated in the Cayman Islands on September 30, 2021, with shares listed on the Main Board of the Stock Exchange (Stock Code: 2486)[11](index=11&type=chunk) - **"Reporting Period"** refers to the six months ended June 30, 2025[13](index=13&type=chunk) - **"SaaS"** refers to Software as a Service, a cloud-based software licensing and delivery model[13](index=13&type=chunk) Financial Summary and Operating Highlights This section presents a concise overview of the company's financial performance and key operating metrics for the reporting period [Financial Overview](index=10&type=section&id=Financial%20Overview) For the six months ended June 30, 2025, the company achieved a **376.1%** revenue increase to **RMB 1.6313 billion** and turned a loss into a profit of **RMB 7.984 million**, despite a decline in gross margin due to market share strategies Financial Overview for the Six Months Ended June 30, 2025 | Metric | 2025 (RMB '000) | 2024 (RMB '000) | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,631,270 | 342,597 | 376.1% | | Gross Profit | 82,085 | 48,856 | 68.0% | | Profit (Loss) for the Period | 7,984 | (3,767) | 311.9% | | Profit (Loss) and Total Comprehensive Income (Expense) Attributable to Owners of the Company for the Period | 6,317 | (3,493) | 280.8% | | Revenue Growth Rate | 376.1% | 44.1% (for the six months ended December 31, 2024) | - | | Current Ratio (times) | 2.5 | 2.5 (as of December 31, 2024) | - | | Gearing Ratio | N/A (Net Cash) | N/A (Net Cash) (as of December 31, 2024) | - | | Total Equity | 490,716 | 479,665 (as of December 31, 2024) | 2.3% | | Cash and Cash Equivalents | 149,180 | 159,647 (as of December 31, 2024) | -6.5% | | Bank Borrowings | 77,948 | 64,148 (as of December 31, 2024) | 21.5% | | Amounts Due to Non-Controlling Shareholders | 10,535 | 33,953 (as of December 31, 2024) | -69.0% | | Lease Liabilities | 4,323 | 3,570 (as of December 31, 2024) | 21.1% | [Operating Metrics](index=11&type=section&id=Operating%20Metrics) During the reporting period, the company saw significant growth in paid customer numbers and cumulative touchpoints, with average monthly active touchpoints doubling, indicating strong business expansion and market penetration Operating Metrics for the Six Months Ended June 30, 2025 | Metric | 2025 | 2024 | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Number of Paid Customers | 1,064 | 232 | 358.6% | | Cumulative Number of POS | 4,452,000 | 4,430,000 | 0.5% | | Cumulative Number of Touchpoints | 734,000 | 553,000 | 32.7% | | Average Monthly Active Touchpoints | 64,000 | 31,000 | 106.5% | Management Discussion and Analysis This section provides management's perspective on the company's business performance, financial results, and future outlook for the reporting period [Business Review](index=12&type=section&id=Business%20Review) Despite global economic pressures, the company achieved a **376.1%** year-on-year increase in total revenue, leveraging AI technology and market share strategies, with task and marketer matching services showing the most rapid growth - Amidst international instability and global economic downturn, the company leveraged **AI R&D and applications** to strengthen core competitiveness and achieved breakthrough growth through a **market share expansion strategy**[25](index=25&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk) - During the reporting period, total revenue was approximately **RMB 1.6313 billion**, a year-on-year increase of approximately **376.1%**[28](index=28&type=chunk)[33](index=33&type=chunk) [Customised Marketing Solutions](index=12&type=section&id=Customised%20marketing%20solution) The customised marketing solutions business achieved a **40.4%** year-on-year revenue increase by deepening O2O instant retail cooperation and enhancing AI digital sales capabilities, consolidating market share and opening new channels - Revenue from this business was approximately **RMB 371.7 million**, a year-on-year increase of approximately **40.4%**[31](index=31&type=chunk)[34](index=34&type=chunk) - Through close cooperation with retail channel partners and deep cultivation in O2O instant retail, leveraging **AI-powered enablement and application service capabilities**, the company consolidated market share and opened new channels and application scenarios[30](index=30&type=chunk)[34](index=34&type=chunk) [Task and Marketer Matching Services](index=13&type=section&id=Tasks%20and%20marketers%20matching%20service) The task and marketer matching services business achieved an astonishing **2,067.7%** year-on-year growth, serving over **940** cumulative customers, driven by continuous AI R&D and the launch of a new matching business platform - Revenue from this business was approximately **RMB 1.2204 billion**, a year-on-year increase of approximately **2,067.7%**[37](index=37&type=chunk)[44](index=44&type=chunk) - Since the official launch of the new matching business platform in November 2024, over **940** customers have been cumulatively signed as of June 30, 2025, with an average customer value of approximately **RMB 1.3 million**[36](index=36&type=chunk)[43](index=43&type=chunk)[61](index=61&type=chunk) [SaaS+ Subscription and Other Services](index=13&type=section&id=SaaS%2B%20subscription%20and%20other%20services) The SaaS+ subscription and other services business achieved a **187.5%** year-on-year revenue increase, benefiting from the maturity of its digital, systematic, and intelligent platforms and enhanced application service capabilities - Revenue from this business was approximately **RMB 27.6 million**, a year-on-year increase of approximately **187.5%**[40](index=40&type=chunk)[45](index=45&type=chunk) - The platform is increasingly refined and mature, offering more flexible and diversified comprehensive services to meet diverse customer needs[39](index=39&type=chunk)[45](index=45&type=chunk) [Marketer Assignment Services](index=13&type=section&id=Marketers%20assignment%20service) Affected by the offline retail market environment, brand clients reduced their investments, leading to a **4.2%** year-on-year decrease in revenue from marketer assignment services - Revenue from this business was approximately **RMB 11.5 million**, a year-on-year decrease of approximately **4.2%**[42](index=42&type=chunk)[46](index=46&type=chunk) - The revenue decrease was primarily due to the overall offline retail market environment, with brand clients continuously reducing investments, leading the company to decrease the number of assigned service personnel[41](index=41&type=chunk)[46](index=46&type=chunk)[58](index=58&type=chunk) [Business Outlook](index=14&type=section&id=Business%20Outlook) The company plans to further leverage its **AI intelligent matching advantages** to expand new channels and market share, strengthen cooperation with channel partners to accumulate data assets and analyze market dynamics with AI, explore overseas markets and cross-border trade using Hong Kong's free port advantages, deepen O2O instant retail development to monetize data assets, and continuously increase **AI technology R&D investment** to drive business upgrades - Fully maintain **AI intelligent matching core advantages**, expand into new channels, new fields, and new markets, and capture more market share in matching services[48](index=48&type=chunk) - Maintain close cooperation with major channel partners, improve digital joint operation mechanisms, accumulate consumer and retail data assets, and utilize **AI to analyze market dynamics and consumption trends**[48](index=48&type=chunk) - Leverage Hong Kong's geographical and policy advantages to focus on overseas market expansion, initiate cross-border trade layouts, and build an integrated service system encompassing import/export, supply chain, marketing promotion, channel distribution, and omni-channel retail[48](index=48&type=chunk) - Deepen O2O instant retail development, explore innovative integration with terminal retail scenarios, monetize data assets through **precision marketing and intelligent distribution**, and support breakthroughs in offline terminal sales[48](index=48&type=chunk) - Continuously increase **AI technology R&D investment**, deepen intelligent innovation and application iteration, and empower full-chain business upgrades through **AI-driven data insights**[48](index=48&type=chunk) [Financial Review](index=15&type=section&id=Financial%20Review) This section provides a detailed review of the financial performance for the reporting period, including key metrics such as revenue, costs, gross profit, expenses, taxation, and cash flow, noting significant revenue growth but a decline in gross margin due to market share strategies, and a decrease in cash and cash equivalents due to increased trade receivables [Revenue](index=15&type=section&id=Revenue) For the six months ended June 30, 2025, the company's total revenue reached **RMB 1.6313 billion**, a **376.1%** year-on-year increase, primarily driven by the explosive growth of task and marketer matching services - Total revenue was approximately **RMB 1.6313 billion**, an increase of approximately **376.1%** compared to the same period in 2024[49](index=49&type=chunk)[50](index=50&type=chunk) Revenue Breakdown by Business Segment | Business Segment | 2025 (RMB '000) | 2024 (RMB '000) | Year-on-Year Growth (%) | | :--- | :--- | :--- | :--- | | Customised Marketing Solutions | 371,744 | 264,776 | 40.4% | | Task and Marketer Matching Services | 1,220,423 | 56,296 | 2,067.7% | | Marketer Assignment Services | 11,492 | 11,960 | -4.2% | | SaaS+ Subscription and Other Services | 27,611 | 9,565 | 187.5% | | **Total** | **1,631,270** | **342,597** | **376.1%** | [Cost, Gross Profit and Gross Profit Margin](index=17&type=section&id=Cost%2C%20gross%20profit%20and%20gross%20profit%20margin) During the reporting period, total costs increased by **427.5%** to **RMB 1.5492 billion**, exceeding revenue growth, primarily due to the company's strategy of moderately lowering profit expectations to capture market share, resulting in gross profit increasing by **67.9%** to **RMB 82.1 million** but gross margin declining from **14.3%** to **5.0%** - Total costs were approximately **RMB 1.5492 billion**, an increase of approximately **427.5%** compared to the same period in 2024[64](index=64&type=chunk)[70](index=70&type=chunk) - The cost growth rate exceeded revenue growth, primarily because the company prioritized **market share expansion** and service quality assurance, moderately lowering profit expectations[65](index=65&type=chunk)[70](index=70&type=chunk) - Gross profit was approximately **RMB 82.1 million**, a year-on-year increase of approximately **67.9%**, with gross margin at approximately **5.0%**, a decrease of approximately **9.3%** from **14.3%** in the same period of 2024[65](index=65&type=chunk)[66](index=66&type=chunk)[70](index=70&type=chunk) - The decline in gross margin was mainly due to the **task and marketer matching services business rapidly capturing market share through a low-price model**[67](index=67&type=chunk)[70](index=70&type=chunk) [Administrative Expenses](index=17&type=section&id=Administrative%20expenses) Administrative expenses, primarily comprising employee salaries and benefits and office rent, slightly increased by **3.7%** to **RMB 44.8 million** during the reporting period, mainly influenced by the growth of task and marketer matching services - Administrative expenses increased by approximately **3.7%** from approximately **RMB 43.2 million** in the same period of 2024 to approximately **RMB 44.8 million**[68](index=68&type=chunk)[71](index=71&type=chunk) - Primarily due to the growth of the **task and marketer matching services business**, but the overall change was not significant[68](index=68&type=chunk)[71](index=71&type=chunk) [Selling and Marketing Expenses](index=17&type=section&id=Selling%20and%20marketing%20expenses) Selling and marketing expenses, primarily employee salaries, significantly increased by **160.0%** to **RMB 27.3 million** during the reporting period, mainly due to the expansion of task and marketer matching services - Selling and marketing expenses increased by approximately **160.0%** from approximately **RMB 10.5 million** in the same period of 2024 to approximately **RMB 27.3 million**[69](index=69&type=chunk)[72](index=72&type=chunk) - Primarily due to the increase in selling and marketing expenses driven by the growth of the **task and marketer matching services business**[69](index=69&type=chunk)[72](index=72&type=chunk) [Research and Development Costs](index=18&type=section&id=Research%20and%20development%20costs) Research and development costs, primarily personnel costs, decreased by **58.0%** to **RMB 5.5 million** during the reporting period, mainly benefiting from the integration of AI applications that enhanced in-house operation and maintenance capabilities - Research and development costs decreased by approximately **58.0%** from approximately **RMB 13.1 million** in the same period of 2024 to approximately **RMB 5.5 million**[73](index=73&type=chunk)[79](index=79&type=chunk) - Primarily due to the enhancement of in-house operation and maintenance capabilities through the integration of **artificial intelligence applications**[73](index=73&type=chunk)[79](index=79&type=chunk) [Other Income](index=18&type=section&id=Other%20income) Other income increased by **100%** year-on-year to **RMB 11 million**, primarily due to an increase in government policy subsidies - Other income increased by approximately **100%** from approximately **RMB 5.5 million** in the same period of 2024 to approximately **RMB 11 million**[74](index=74&type=chunk)[80](index=80&type=chunk) - Primarily due to an increase in **government policy subsidies** received[74](index=74&type=chunk)[80](index=80&type=chunk) [Other (Losses) Gains — Net](index=18&type=section&id=Other%20(losses)%20gains%20%E2%80%94%20net) Net other gains turned from a gain of **RMB 10.3 million** in the same period of 2024 to a loss of **RMB 0.5 million** in the reporting period, primarily due to a significant decrease in government-refunded social security payments and lower HKD exchange gains - Net other gains decreased by approximately **104.9%** from approximately **RMB 10.3 million** in the same period of 2024 to a loss of approximately **RMB 0.5 million**[75](index=75&type=chunk)[81](index=81&type=chunk) - Primarily due to a significant decrease in government-refunded social security payments to alleviate COVID-19 impacts, and a decline in exchange gains from HKD[75](index=75&type=chunk)[81](index=81&type=chunk) [Impairment Losses on Trade Receivables, Contract Assets and Other Receivables — Net](index=18&type=section&id=Impairment%20losses%20on%20trade%20receivables%2C%20contract%20assets%20and%20other%20receivables%20%E2%80%94%20net) Net impairment losses on financial assets decreased by **17.2%** to **RMB 2.4 million**, primarily benefiting from the company's strengthened credit management and improved quality of trade receivables and contract assets - Impairment of financial assets decreased by approximately **17.2%** from approximately **RMB 2.9 million** in the same period of 2024 to approximately **RMB 2.4 million**[76](index=76&type=chunk)[82](index=82&type=chunk) - Primarily due to the Group's strengthened credit management, which improved the quality of newly generated trade receivables and contract assets[76](index=76&type=chunk)[82](index=82&type=chunk) [Finance (Cost) Income — Net](index=18&type=section&id=Finance%20(cost)%20income%20%E2%80%94%20net) Net finance income turned from a gain of **RMB 0.5 million** in the same period of 2024 to a cost of **RMB 0.9 million** in the reporting period, primarily due to a decrease in asset yields caused by central bank interest rate cuts - Net finance income decreased by approximately **280.0%** from approximately **RMB 0.5 million** in the same period of 2024 to a net finance cost of approximately **RMB 0.9 million**[77](index=77&type=chunk)[83](index=83&type=chunk) - Primarily due to a decrease in market interest rates from central bank rate cuts, leading to a decline in asset yields[77](index=77&type=chunk)[83](index=83&type=chunk) [Income Tax (Expense) Credit](index=18&type=section&id=Income%20tax%20(expense)%20credit) Income tax shifted from a credit of **RMB 0.9 million** in the same period of 2024 to an expense of **RMB 3.7 million** in the reporting period, primarily due to increased profits in core business segments, leading to higher taxable income - Income tax increased by approximately **311.1%** from an income tax credit of approximately **RMB 0.9 million** in the same period of 2024 to an income tax expense of approximately **RMB 3.7 million**[78](index=78&type=chunk)[84](index=84&type=chunk) - Primarily due to increased profits in core business segments, leading to higher taxable income[78](index=78&type=chunk)[84](index=84&type=chunk) [Profit (Loss) Attributable to Equity Owners of the Company](index=19&type=section&id=Profit%20(Loss)%20attributable%20to%20equity%20owners%20of%20the%20Company) Profit attributable to equity owners of the Company turned from a loss of **RMB 3.5 million** in the same period of 2024 to a profit of **RMB 6.3 million** in the reporting period, representing a **280.0%** increase - Profit attributable to equity owners of the Company increased by approximately **280.0%** from a loss of approximately **RMB 3.5 million** in the same period of 2024 to a profit of approximately **RMB 6.3 million**[85](index=85&type=chunk)[93](index=93&type=chunk) [Cash and Cash Equivalents](index=19&type=section&id=Cash%20and%20cash%20equivalents) As of June 30, 2025, cash and cash equivalents decreased by **6.5%** to **RMB 149.2 million**, primarily due to increased sales revenue not yet collected, leading to higher trade receivables - Cash and cash equivalents decreased by approximately **6.5%** from approximately **RMB 159.6 million** as of December 31, 2024, to approximately **RMB 149.2 million**[86](index=86&type=chunk)[94](index=94&type=chunk) - Primarily due to increased sales revenue not yet collected in cash, leading to an increase in trade receivables and a decrease in cash[86](index=86&type=chunk)[94](index=94&type=chunk) [Capital Expenditure](index=19&type=section&id=Capital%20expenditure) Capital expenditure for the reporting period was approximately **RMB 0.1 million**, remaining largely consistent with the same period last year - For the six months ended June 30, 2025, capital expenditure was approximately **RMB 0.1 million**, largely consistent with the same period in 2024[87](index=87&type=chunk)[95](index=95&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=19&type=section&id=Material%20acquisitions%20and%20disposal%20of%20subsidiaries%2C%20associates%20and%20joint%20ventures) As of June 30, 2025, the company had no material acquisitions or disposals of subsidiaries, associates, or joint ventures - As of June 30, 2025, the Company had no material acquisitions or disposals of subsidiaries, associates, or joint ventures[88](index=88&type=chunk)[96](index=96&type=chunk) [Plans for Material Investments or Acquisition of Capital Assets](index=19&type=section&id=Plans%20for%20material%20investments%20or%20acquisition%20of%20capital%20assets) As of June 30, 2025, the company had no plans for material investments or acquisitions of capital assets, other than those disclosed in the use of proceeds from listing - As of June 30, 2025, other than those disclosed in the "Use of Proceeds from the Listing" section of this interim report, the Company had no plans for material investments or acquisitions of capital assets in the future[89](index=89&type=chunk)[97](index=97&type=chunk) [Pledge of Assets](index=19&type=section&id=Pledge%20of%20assets) As of June 30, 2025, the company had no material pledge of assets - As of June 30, 2025, the Company had no material pledge of assets[90](index=90&type=chunk)[98](index=98&type=chunk) [Liquidity and Capital Sources](index=19&type=section&id=Liquidity%20and%20capital%20source) The company primarily funds its operations through cash flow from operating activities, bank borrowings, and net proceeds from listing, possessing sufficient liquidity with **RMB 149.2 million** in cash and cash equivalents, **RMB 77.9 million** in outstanding borrowings, and **RMB 37 million** in unutilized bank facilities as of June 30, 2025 - The Group primarily funds its operations with **cash generated from operations, borrowings, and net proceeds from the listing**[91](index=91&type=chunk)[99](index=99&type=chunk) - As of June 30, 2025, cash and cash equivalents were approximately **RMB 149.2 million**, with outstanding borrowings of approximately **RMB 77.9 million** (all due within one year)[100](index=100&type=chunk)[107](index=107&type=chunk) - As of June 30, 2025, unutilized bank facilities totaled **RMB 37 million**, indicating the Group has sufficient liquidity[100](index=100&type=chunk)[107](index=107&type=chunk) [Foreign Exchange Risk](index=20&type=section&id=Foreign%20exchange%20risk) The company's primary operations are in mainland China, with revenue and costs settled in RMB, but some monetary assets are denominated in HKD, exposing it to foreign exchange fluctuation risk; currently, there are no hedging plans, but management monitors and considers hedging when necessary - The Group's primary operations are in mainland China, with major revenue and costs settled in **RMB**, but some monetary assets are denominated in **HKD**, exposing it to **foreign exchange fluctuation risk**[101](index=101&type=chunk)[108](index=108&type=chunk) - The Group currently has no foreign exchange hedging plans, but management monitors foreign exchange fluctuation risk and considers hedging when necessary[101](index=101&type=chunk)[108](index=108&type=chunk) [Contingent Liabilities](index=20&type=section&id=Contingent%20liabilities) As of June 30, 2025, the company had no material contingent liabilities, consistent with the situation as of December 31, 2024 - As of June 30, 2025, the Group had no material contingent liabilities, consistent with the situation as of December 31, 2024[102](index=102&type=chunk)[109](index=109&type=chunk) [Employees and Remuneration Policies](index=20&type=section&id=Employees%20and%20Remuneration%20Policies) As of June 30, 2025, the company employed **6,801** staff, a decrease from **7,342** as of December 31, 2024, with remuneration policies referencing market levels and individual performance, complemented by a Restricted Share Unit Scheme and Share Award Scheme to attract and incentivize talent, and an employee diversity policy adopted in July 2025 - As of June 30, 2025, the Group employed **6,801** staff (December 31, 2024: **7,342** staff)[103](index=103&type=chunk)[110](index=110&type=chunk) - Remuneration policies reference market compensation and individual employee performance, qualifications, and experience, with outstanding performers eligible for discretionary year-end bonuses[104](index=104&type=chunk)[110](index=110&type=chunk) - The company has adopted a **Restricted Share Unit Scheme** (January 13, 2022) and a **Share Award Scheme** (June 26, 2023) to enhance incentive mechanisms, attract, and retain talent[105](index=105&type=chunk)[110](index=110&type=chunk) - The Group adopted an **employee diversity policy** in July 2025, aiming to fulfill social responsibility and promote equality and inclusion[106](index=106&type=chunk)[110](index=110&type=chunk) Corporate Governance and Other Information This section details the company's corporate governance practices, compliance with regulations, and other relevant information for the reporting period [Corporate Governance Code](index=21&type=section&id=Corporate%20Governance%20Code) The company is committed to maintaining good corporate governance and complied with all provisions of Appendix C1 of the Listing Rules' Corporate Governance Code during the reporting period, with a deviation where the Chairman and CEO roles are combined, an arrangement the Board believes benefits business prospects and will be reviewed periodically for operational efficiency - The company complied with all provisions of Appendix C1 of the Listing Rules' Corporate Governance Code during the reporting period, except for the combined roles of Chairman and Chief Executive Officer held by **Mr. Sun Guangjun**[111](index=111&type=chunk)[112](index=112&type=chunk)[115](index=115&type=chunk) - The Board believes this arrangement facilitates consistent leadership, timely and effective decision-making and implementation, and does not compromise the balance of power between the Board and management[113](index=113&type=chunk)[116](index=116&type=chunk) [Model Code for Securities Transactions](index=22&type=section&id=Model%20Code%20for%20Securities%20Transactions) The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers in Appendix C3 of the Listing Rules, and all directors confirmed compliance with the code during the reporting period - The company has adopted the **Model Code for Securities Transactions by Directors of Listed Issuers** in Appendix C3 of the Listing Rules[118](index=118&type=chunk)[120](index=120&type=chunk) - All Directors confirmed compliance with the provisions regarding Directors' securities transactions as set out in the Model Code during the reporting period[118](index=118&type=chunk)[120](index=120&type=chunk) [Interests and Short Positions of Directors and Chief Executive in the Shares, Underlying Shares and Debentures](index=22&type=section&id=Interests%20and%20Short%20Positions%20of%20Directors%20and%20Chief%20Executive%20in%20the%20Shares%2C%20Underlying%20Shares%20and%20Debenture) As of June 30, 2025, **Mr. Sun Guangjun** held **55.89%** of the company's shares through a family trust and controlled corporations, while **Mr. Yang Hong** held a **1.34%** beneficial interest Interests of Directors and Chief Executive in Shares | Name of Director | Capacity/Nature of Interest | Number of Shares/Underlying Shares Held | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Sun Guangjun | Founder of Discretionary Trust/Interest in Controlled Corporation | 67,460,000 | 55.89% | | Mr. Yang Hong | Beneficial Interest | 1,620,240 | 1.34% | - All interests represent long positions, calculated based on the total number of **120,701,800** issued shares (including treasury shares) as of June 30, 2025[123](index=123&type=chunk) [Interests and Short Positions of Substantial Shareholders in Shares and Underlying Shares](index=24&type=section&id=Interests%20and%20Short%20Positions%20of%20Substantial%20Shareholders%20in%20Shares%20and%20Underlying%20Shares) As of June 30, 2025, excluding directors, **Ms. Tan Hui** (spouse of Mr. Sun Guangjun) was deemed to hold **55.89%** of shares, **Summit Plus** held **43.46%**, **Mr. Xia Jingtang** and his spouse **Ms. Yan Xiaohang** were deemed to hold **8.85%**, **Hengtai Trust** as trustee held **49.41%**, and **CMB Wing Lung Trust Company Limited** held **5.14%** Interests of Substantial Shareholders in Shares | Name | Nature of Interest | Number of Shares Held | Approximate Percentage of Total Issued Share Capital of the Company | | :--- | :--- | :--- | :--- | | Ms. Tan Hui | Interest of Spouse | 67,460,000 | 55.89% | | Summit Plus | Interest in Controlled Corporation | 52,460,000 | 43.46% | | Guangjun Sun Holdings | Beneficial Owner | 15,000,000 | 12.43% | | Junshu Holdings | Interest in Controlled Corporation | 15,000,000 | 12.43% | | Guangjun Holdings | Beneficial Owner | 52,460,000 | 43.46% | | Mr. Xia Jingtang | Founder of Discretionary Trust/Interest in Controlled Corporation | 10,680,000 | 8.85% | | Ms. Yan Xiaohang | Interest of Spouse | 10,680,000 | 8.85% | | Jonson Xia Smile Holdings | Interest in Controlled Corporation | 7,180,000 | 5.95% | | Hannah Xia Holdings | Beneficial Owner | 7,180,000 | 5.95% | | Hengtai Trust | Trustee | 59,640,000 | 49.41% | | Kuwei Holdings | Beneficial Owner | 8,375,400 | 6.94% | | CMB Wing Lung Trust Company Limited | Trustee | 6,208,000 | 5.14% | | Plus Group 2023 Limited | Beneficial Owner | 6,208,000 | 5.14% | - All interests represent long positions, calculated based on the total number of **120,701,800** issued shares (including treasury shares) as of June 30, 2025[127](index=127&type=chunk) [Restricted Share Unit Scheme](index=26&type=section&id=RSU%20Scheme) The company adopted a Restricted Share Unit Scheme on January 13, 2022, to incentivize employees, which does not involve the issuance or grant of restricted share units post-listing, with no units granted during the reporting period and no outstanding restricted share units as of the latest practicable date - The company adopted a **Restricted Share Unit Scheme** on January 13, 2022, to incentivize employees, directors, officers, and consultants[129](index=129&type=chunk)[134](index=134&type=chunk) - The scheme does not involve the issuance or grant of any restricted share units by the Company after listing and is not subject to the provisions of Chapter 17 of the Listing Rules[129](index=129&type=chunk)[134](index=134&type=chunk) - No grants were made under the Restricted Share Unit Scheme during the reporting period, and as of the latest practicable date, no restricted share units remained outstanding, with the company no longer issuing or granting further restricted share units[130](index=130&type=chunk)[134](index=134&type=chunk) [Share Award Scheme](index=26&type=section&id=Share%20Award%20Scheme) The company adopted a Share Award Scheme on June 26, 2023, to recognize, reward, and retain eligible participants, with no shares purchased by the trustee or awarded as of the latest practicable date, but **6,208,000** shares remain available for grant - The company adopted a **Share Award Scheme** on June 26, 2023, aimed at providing incentives and rewards to eligible participants[131](index=131&type=chunk)[135](index=135&type=chunk) - During the reporting period, the trustee did not purchase any shares in the open market for the Share Award Scheme, and as of the latest practicable date, no award shares had been granted to any grantees[136](index=136&type=chunk)[139](index=139&type=chunk) - As of the latest practicable date, **6,208,000** shares were available for grant under the Share Award Scheme, representing approximately **5.14%** of the Company's total issued shares[136](index=136&type=chunk)[139](index=139&type=chunk) [Purchase, Sale or Redemption of the Company's Securities](index=27&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Securities%20of%20the%20Company) The company's directors are authorized to repurchase up to **10%** of issued shares, with no listed securities purchased, sold, or redeemed by the company or its subsidiaries during the reporting period, and **4,891,600** treasury shares held as of the date of this interim report - Directors have been granted a general mandate by shareholders to repurchase up to **10%** of the total issued shares (excluding treasury shares) as of the date the relevant resolution was passed, amounting to **11,581,020** shares[137](index=137&type=chunk)[140](index=140&type=chunk) - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[138](index=138&type=chunk)[140](index=140&type=chunk) - As of the date of this interim report, the Company held **4,891,600** treasury shares[138](index=138&type=chunk)[140](index=140&type=chunk) [Use of Proceeds from the Listing](index=28&type=section&id=Use%20of%20Proceeds%20from%20the%20Listing) The company listed on May 11, 2023, with net proceeds of approximately **HKD 206.7 million**, and as of June 30, 2025, portions have been utilized as planned, with some uses adjusted and delayed to flexibly support business development and respond to market uncertainties - Total proceeds from the listing were **HKD 265 million**, with net proceeds of approximately **HKD 206.7 million**[142](index=142&type=chunk)[143](index=143&type=chunk) Use of Proceeds from Listing and Utilization (As of June 30, 2025) | Use of Proceeds | Original Total (HKD in millions) | Revised Net Amount (HKD in millions) | Actual Net Amount Utilized as of June 30, 2025 (HKD in millions) | Unutilized Net Amount as of June 30, 2025 (HKD in millions) | Expected Timeline for Utilization | | :--- | :--- | :--- | :--- | :--- | :--- | | Strengthening Core Technological Capabilities and Basic R&D | 66.1 | 66.1 | 13.5 | 52.6 | Gradual utilization until December 31, 2027 | | Seeking Strategic Investments, Acquisitions, and Collaborations | 62.0 | — | — | — | — | | Enhancing Sales and Marketing Capabilities | 42.4 | 66.1 | 60.2 | 5.9 | Gradual utilization until December 31, 2027 | | Repaying Bank Borrowings | 15.5 | 15.5 | 15.5 | — | Fully utilized as of June 30, 2023 | | Working Capital | 20.7 | 59.0 | 59.0 | — | Fully utilized as of June 30, 2025 | | **Total** | **206.7** | **206.7** | **148.2** | **58.5** | | [Reasons and Benefits of the Change and Delay in the Use of Net Proceeds](index=29&type=section&id=Reasons%20and%20benefits%20of%20the%20change%20and%20delay%20in%20the%20use%20of%20net%20proceeds) The company adjusted the use of listing proceeds, reallocating **HKD 62 million** from strategic investments, acquisitions, and collaborations to sales and marketing capability enhancement and working capital, while expanding the scope of technology R&D, aiming to expand markets through joint ventures instead of acquisitions, cautiously address uncertainties in the Chinese retail market, and utilize financial resources more flexibly and effectively - The scope of "**Strengthening Core Technological Capabilities and Basic R&D**" has been expanded to adjust technological capabilities and R&D plans in a more flexible and effective manner, with no change in total amount or intensity[146](index=146&type=chunk)[149](index=149&type=chunk) - The original **HKD 62 million** allocated for "**Seeking Strategic Investments, Acquisitions, and Collaborations**" has been reallocated to "**Enhancing Sales and Marketing Capabilities**" and "**Working Capital**"[147](index=147&type=chunk)[150](index=150&type=chunk) - The reason for the change is the company's strategy to establish **joint ventures with business partners** instead of acquisitions to expand into new markets, as joint ventures require less initial investment capital and allow for shared operating risks[147](index=147&type=chunk)[150](index=150&type=chunk) - The expected timeline for "**Enhancing Sales and Marketing Capabilities**" and "**Working Capital**" has been delayed, primarily due to adjustments in business development and actual customer needs, as well as the adoption of the joint venture strategy[154](index=154&type=chunk)[158](index=158&type=chunk) [Audit Committee](index=31&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, reviewed the unaudited interim report for the six months ended June 30, 2025; auditors issued qualified opinions on fund investments in 2023 and 2024 financial statements, but with the fund redeemed, no carry-over impact is expected on 2025 financials, and the company has strengthened investment policies and risk management - The Audit Committee comprises **three independent non-executive directors**, with **Mr. Lau Man Tak** serving as Chairman[159](index=159&type=chunk) - The interim report for the six months ended June 30, 2025, has been reviewed by the Audit Committee and by the independent auditor, **Rongcheng (Hong Kong) Certified Public Accountants Limited**[160](index=160&type=chunk)[162](index=162&type=chunk) - Both the former and current auditors issued **qualified opinions** due to scope limitations on fund investments in the 2023 and 2024 financial statements, as management was unable to obtain relevant supporting documents[161](index=161&type=chunk)[163](index=163&type=chunk)[164](index=164&type=chunk)[165](index=165&type=chunk) - As the fund was fully redeemed in March 2024, the auditors and Audit Committee believe the qualified opinion will not have a carry-over impact on the consolidated financial statements for the year ended December 31, 2025[166](index=166&type=chunk)[170](index=170&type=chunk) - The company has revised its investment policy, established an investment committee, and initiated legal action to recover unreturned guaranteed amounts to strengthen risk management[167](index=167&type=chunk)[170](index=170&type=chunk) [Dividend](index=32&type=section&id=Dividend) The Board does not recommend the payment of any dividend for the six months ended June 30, 2025, consistent with the same period last year - The Board does not recommend the payment of any dividend for the six months ended June 30, 2025 (June 30, 2024: nil)[168](index=168&type=chunk)[171](index=171&type=chunk) [Compliance with Laws and Regulations](index=33&type=section&id=Compliance%20with%20Laws%20and%20Regulations) The company is actively rectifying third-party agency arrangements for employee social insurance and housing provident funds, having established over **50** branch companies and completed account transfers for approximately **98.7%** of employees as of June 30, 2025, with the remaining **1.3%** still being processed due to practical difficulties; otherwise, the company complied with all material laws and regulations during the reporting period - The company is rectifying third-party agency arrangements for employee social insurance and housing provident funds, planning to establish branch companies and transfer accounts in no less than **25** Chinese cities[172](index=172&type=chunk)[179](index=179&type=chunk) - As of June 30, 2025, over **50** branch companies have been established, and account transfers for approximately **98.7%** of employees have been completed[173](index=173&type=chunk)[179](index=179&type=chunk) - The remaining **1.3%** of employee transfers are still being processed due to practical difficulties such as medical leave, accidental injuries, housing provident fund loan applications, or impending retirement[173](index=173&type=chunk)[179](index=179&type=chunk) - Save for the aforementioned disclosures, the Group complied with all material laws and regulations during the reporting period[175](index=175&type=chunk)[179](index=179&type=chunk) [Amendment of the Articles of Association](index=33&type=section&id=Amendment%20of%20the%20Articles%20of%20Association) During the reporting period, there were no amendments to the company's Articles of Association requiring disclosure under Rule 13.51(1) of the Listing Rules - During the reporting period, there were no amendments to the Articles of Association requiring disclosure under Rule 13.51(1) of the Listing Rules[176](index=176&type=chunk)[180](index=180&type=chunk) [Changes of Directors and Chief Executive](index=33&type=section&id=Changes%20of%20Directors%20and%20Chief%20Executive) During the reporting period, there were no changes in the information of the company's directors and chief executive requiring disclosure under Rule 13.51B(1) of the Listing Rules - During the reporting period, there were no changes in the information of the Company's directors and chief executive requiring disclosure under Rule 13.51B(1) of the Listing Rules[177](index=177&type=chunk)[181](index=181&type=chunk) [Significant Events After the Reporting Period](index=33&type=section&id=Significant%20Events%20After%20the%20Reporting%20Period) As of the date of this interim report, no significant subsequent events occurred after June 30, 2025 - The Group had no significant subsequent events after June 30, 2025, and up to the date of this interim report[178](index=178&type=chunk)[182](index=182&type=chunk) Interim Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, the company's revenue significantly increased to **RMB 1.6313 billion**, turning a loss into a profit of **RMB 7.984 million** for the period, with gross profit up **68.0%** but gross margin declining due to faster cost growth, and profit attributable to owners of the Company at **RMB 6.317 million**, with basic earnings per share of **RMB 0.06** Summary of Interim Condensed Consolidated Statement of Comprehensive Income | Metric | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue | 1,631,270 | 342,597 | | Cost of Services | (1,549,185) | (293,741) | | Gross Profit | 82,085 | 48,856 | | Administrative Expenses | (44,776) | (43,151) | | Selling and Marketing Expenses | (27,299) | (10,515) | | Research and Development Costs | (5,542) | (13,083) | | Other Income | 11,038 | 5,455 | | Other (Losses) Gains, Net | (474) | 10,301 | | Operating Profit (Loss) | 12,649 | (5,043) | | Finance (Cost) Income, Net | (890) | 451 | | Profit (Loss) Before Income Tax | 11,662 | (4,622) | | Income Tax (Expense) Credit | (3,678) | 855 | | Profit (Loss) for the Period | 7,984 | (3,767) | | Profit (Loss) for the Period Attributable to Owners of the Company | 6,317 | (3,493) | | Non-controlling Interests | 1,667 | (274) | | Basic Earnings (Loss) Per Share (RMB) | 0.06 | (0.03) | Interim Condensed Consolidated Statement of Financial Position As of June 30, 2025, the company's total assets were **RMB 810.9 million** and total equity was **RMB 490.7 million**, with trade receivables and contract assets forming a significant portion of current assets, cash and cash equivalents decreasing, and trade and other payables and borrowings being the main components of liabilities Summary of Interim Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | **ASSETS** | | | | Non-current Assets | 14,125 | 10,523 | | Current Assets | 796,784 | 790,185 | | Trade Receivables | 369,208 | 329,443 | | Contract Assets | 163,036 | 197,153 | | Cash and Cash Equivalents | 149,180 | 159,647 | | **Total Assets** | **810,909** | **800,708** | | **EQUITY** | | | | Equity Attributable to Owners of the Company | 483,872 | 477,555 | | Non-controlling Interests | 6,844 | 2,110 | | **Total Equity** | **490,716** | **479,665** | | **LIABILITIES** | | | | Non-current Liabilities | 2,476 | 1,224 | | Current Liabilities | 317,717 | 319,819 | | Trade and Other Payables | 180,372 | 176,129 | | Borrowings | 77,948 | 64,148 | | **Total Liabilities** | **320,193** | **321,043** | | **Total Equity and Liabilities** | **810,909** | **800,708** | Interim Condensed Consolidated Statement of Changes in Equity For the six months ended June 30, 2025, the company's total equity increased from **RMB 479.7 million** to **RMB 490.7 million**, primarily due to profit for the period and contributions from non-controlling interests, with statutory reserves increasing and retained earnings slightly decreasing due to transfers to statutory reserves Summary of Interim Condensed Consolidated Statement of Changes in Equity | Metric | Balance as of January 1, 2025 (RMB '000) | Profit and Total Comprehensive Income for the Period (RMB '000) | Contributions from Non-Controlling Shareholders of Subsidiaries (RMB '000) | Transfer to Statutory Reserve (RMB '000) | Balance as of June 30, 2025 (RMB '000) | | :--- | :--- | :--- | :--- | :--- | :--- | | Share Capital | 159 | — | — | — | 159 | | Share Premium | 193,755 | — | — | — | 193,755 | | Other Reserves | 76,638 | — | — | 13,142 | 89,780 | | Retained Earnings | 207,003 | 6,317 | — | (13,142) | 200,178 | | **Subtotal Equity Attributable to Owners of the Company** | **477,555** | **6,317** | **—** | **—** | **483,872** | | Non-controlling Interests | 2,110 | 1,667 | 3,067 | — | 6,844 | | **Total Equity** | **479,665** | **7,984** | **3,067** | **—** | **490,716** | Interim Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2025, net cash outflow from operating activities was **RMB 2.246 million**, net cash inflow from investing activities was **RMB 1.262 million**, and net cash outflow from financing activities was **RMB 10.444 million**, resulting in cash and cash equivalents of **RMB 149.2 million** at period-end, a decrease from the beginning of the period Summary of Interim Condensed Consolidated Statement of Cash Flows | Metric | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (2,246) | (59,999) | | Net Cash From Investing Activities | 1,262 | 38,329 | | Net Cash (Used in) From Financing Activities | (10,444) | 13,718 | | Net Decrease in Cash and Cash Equivalents | (11,428) | (7,952) | | Cash and Cash Equivalents at Beginning of Period | 159,647 | 190,976 | | Cash and Cash Equivalents at End of Period | 149,180 | 183,542 | Notes to the Interim Financial Information This section provides detailed notes to the interim financial information, covering general company data, basis of preparation, accounting policies, estimates, risk management, and segment reporting [1 General Information](index=39&type=section&id=1%20GENERAL%20INFORMATION) The company was incorporated in the Cayman Islands on September 30, 2021, with shares listed on the Main Board of the Hong Kong Stock Exchange since May 2023, primarily engaging in customised marketing solutions, task and marketer matching services, marketer assignment services, and SaaS+ subscription and other services in China, with **Mr. Sun Guangjun** as the ultimate controlling party - The Company was incorporated in the Cayman Islands on **September 30, 2021**, with its shares listed on the Main Board of The Stock Exchange of Hong Kong Limited since **May 2023**[189](index=189&type=chunk)[193](index=193&type=chunk) - The Company and its subsidiaries are principally engaged in customised marketing solutions, task and marketer matching services, marketer assignment services, and SaaS+ subscription and other services in China[190](index=190&type=chunk)[193](index=193&type=chunk) - The ultimate controlling party of the Company is **Mr. Sun Guangjun**[190](index=190&type=chunk)[193](index=193&type=chunk) [2 Basis of Preparation](index=40&type=section&id=2%20BASIS%20OF%20PREPARATION) The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, and this interim financial information is unaudited - The condensed consolidated financial statements are prepared in accordance with **Hong Kong Accounting Standard 34 "Interim Financial Reporting"** issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[192](index=192&type=chunk)[195](index=195&type=chunk) - This interim condensed consolidated financial information is **unaudited**[191](index=191&type=chunk)[194](index=194&type=chunk) [3 Material Accounting Policy Information](index=41&type=section&id=3%20MATERIAL%20ACCOUNTING%20POLICY%20INFORMATION) The accounting policies adopted in the condensed consolidated interim financial statements are consistent with those used in the preparation of the annual consolidated financial statements for the year ended December 31, 2024, and the application of amendments to Hong Kong Financial Reporting Standards during this period had no material impact on financial position and performance - The accounting policies adopted in the condensed consolidated interim financial statements are consistent with those used in the preparation of the annual consolidated financial statements for the year ended December 31, 2024[196](index=196&type=chunk)[200](index=200&type=chunk) - The application of amendments to Hong Kong Financial Reporting Standards (such as HKAS 21 "Lack of Exchangeability") during this interim period had no material impact on the Group's financial position and performance for the current and prior periods[197](index=197&type=chunk)[201](index=201&type=chunk) [4 Critical Accounting Estimates and Judgements](index=41&type=section&id=4%20CRITICAL%20ACCOUNTING%20ESTIMATES%20AND%20JUDGEMENTS) In preparing the condensed consolidated interim financial statements, the company's directors are required to make judgments, estimates, and assumptions regarding the amounts of assets, liabilities, income, and expenses, with the key sources of significant judgments and estimation uncertainty made by management in applying accounting policies being the same as those used in the consolidated financial statements for the year ended December 31, 2024 - In preparing the condensed consolidated interim financial statements, the Company's directors are required to make judgments, estimates, and assumptions regarding the amounts of assets, liabilities, income, and expenses, as well as the disclosures made[198](index=198&type=chunk)[202](index=202&type=chunk) - The key sources of significant judgments and estimation uncertainty made by management in applying the Group's accounting policies are the same as those used in the consolidated financial statements for the year ended December 31, 2024[199](index=199&type=chunk)[202](index=202&type=chunk) [5 Financial Risk Management and Financial Instruments](index=42&type=section&id=5%20FINANCIAL%20RISK%20MANAGEMENT%20AND%20FINANCIAL%20INSTRUMENTS) The company's business faces market risks (including foreign exchange risk, cash flow interest rate risk, and price risk), credit risk, and liquidity risk, with no changes in risk management policies since year-end, and the company analyzes the fair value of financial instruments based on the hierarchy of input data used in valuation methods - The Group's operations expose it to various financial risks: **market risk** (including foreign exchange risk, cash flow interest rate risk, and price risk), **credit risk**, and **liquidity risk**[203](index=203&type=chunk)[205](index=205&type=chunk) - There have been no changes in risk management policies since year-end[204](index=204&type=chunk)[206](index=206&type=chunk) - The Group analyzes the fair value of its financial instruments based on the hierarchy of input data used in the valuation methods for measuring fair value[205](index=205&type=chunk)[207](index=207&type=chunk) [6 Revenue and Segment Information](index=43&type=section&id=6%20REVENUE%20AND%20SEGMENT%20INFORMATION) The company's chairman considers the Group's business as a single operating segment, with total revenue of **RMB 1.6313 billion** for the six months ended June 30, 2025, primarily from task and marketer matching services, and all revenue and non-current assets located in China - The Company's chairman considers the Group's business as a **single operating segment**[208](index=208&type=chunk)[210](index=210&type=chunk) Revenue Breakdown | Business Segment | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Customised Marketing Solutions | 371,744 | 264,776 | | Task and Marketer Matching Services | 1,220,423 | 56,296 | | Marketer Assignment Services | 11,492 | 11,960 | | SaaS+ Subscription and Other Services | 27,611 | 9,565 | | **Total** | **1,631,270** | **342,597** | - All of the Group's revenue was recognized over time during the period, and all revenue and non-current assets for the six months ended June 30, 2025, and 2024 were located in China[213](index=213&type=chunk)[214](index=214&type=chunk)[215](index=215&type=chunk) [7 Other Income and Other (Losses) Gains, Net](index=44&type=section&id=7%20OTHER%20INCOME%20AND%20OTHER%20(LOSSES)%20GAINS%2C%20NET) For the six months ended June 30, 2025, other income increased to **RMB 11.038 million**, primarily from government grants, while net other (losses) gains turned into a loss of **RMB 0.474 million**, mainly due to foreign exchange losses and a significant reduction in government-refunded social security payments in 2024 Other Income and Other (Losses) Gains, Net | Metric | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | **Other Income** | | | | Government Grants | 10,686 | 5,355 | | Others | 352 | 100 | | **Subtotal** | **11,038** | **5,455** | | **Other (Losses) Gains, Net** | | | | Foreign Exchange (Losses) Gains, Net | (459) | 562 | | Reversal of Social Insurance Refund to Customers | — | 9,466 | | Gain on Redemption of Other Financial Assets Measured at Amortised Cost | — | 302 | | Others | (15) | (29) | | **Subtotal** | **(474)** | **10,301** | - Government grants primarily include **employment subsidy programs and company registration subsidies**, with no unfulfilled conditions[219](index=219&type=chunk) - In 2024, due to COVID-19, the government waived social security payments, and the company recognized refundable amounts as other income, with no refundable balance remaining in 2025[219](index=219&type=chunk) - In March 2024, the Group redeemed two private offshore funds, recovering investment principal along with returns, recognizing a gain of approximately **RMB 0.302 million**[219](index=219&type=chunk) [8 Expenses by Nature](index=46&type=section&id=8%20EXPENSES%20BY%20NATURE) For the six months ended June 30, 2025, total expenses were **RMB 1.6268 billion**, with labor costs being the largest component at **RMB 1.3091 billion**, and online platform promotion expenses significantly increasing to **RMB 137.9 million** Summary of Expenses by Nature | Expense Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Employee Benefit Expenses | 124,670 | 197,795 | | Labor Costs | 1,309,147 | 120,312 | | R&D and Technical Service Expenses | 5,542 | 9,753 | | Office Expenses | 8,519 | 8,099 | | Activity Consumables | 3,197 | 5,091 | | Online Platform Promotion Expenses | 137,879 | — | | Travel and Transportation Expenses | 27,464 | 14,091 | | Other Taxes and Levies | 7,224 | 2,332 | | Amortization and Depreciation | 1,729 | 1,026 | | Auditor's Remuneration | 525 | 525 | | Other Expenses | 906 | 1,466 | | **Total** | **1,626,802** | **360,490** | [9 Employee Benefit Expenses](index=46&type=section&id=9%20EMPLOYEE%20BENEFIT%20EXPENSES) For the six months ended June 30, 2025, employee benefit expenses were **RMB 124.7 million**, a decrease from **RMB 197.8 million** in the same period last year, primarily due to reductions in wages and salaries, discretionary bonuses, and retirement benefit scheme contributions Summary of Employee Benefit Expenses | Expense Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Wages and Salaries | 93,294 | 143,520 | | Discretionary Bonuses | 2,440 | 6,361 | | Retirement Benefit Scheme Contributions | 18,945 | 34,792 | | Housing Benefits and Other Expenses | 9,991 | 13,122 | | **Total** | **124,670** | **197,795** | [10 Finance Income (Costs), Net](index=47&type=section&id=10%20FINANCE%20INCOME%20(COSTS)%2C%20NET) For the six months ended June 30, 2025, net finance income turned into a cost of **RMB 0.89 million**, primarily due to decreased bank interest income and increased interest expenses on bank borrowings, trade receivables factoring, lease liabilities, and amounts due to non-controlling shareholders Summary of Finance Income (Costs), Net | Metric | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | **Finance Income** | | | | Bank Interest Income | 1,351 | 1,799 | | **Finance Costs** | | | | Interest Expense on Bank Borrowings | (1,131) | (1,024) | | Interest on Factoring of Trade Receivables | (306) | (209) | | Interest Expense on Lease Liabilities | (270) | (42) | | Interest Expense on Amounts Due to Non-Controlling Shareholders | (534) | (73) | | **Finance (Costs) Income, Net** | **(890)** | **451** | [11 Income Tax (Expense) Credit](index=47&type=section&id=11%20INCOME%20TAX%20(EXPENSE)%20CREDIT) For the six months ended June 30, 2025, income tax expense increased to **RMB 3.678 million** from a credit of **RMB 0.855 million** in the prior year, primarily due to higher taxable income from increased core business profits; the company is exempt from income tax in the Cayman Islands and BVI, had no taxable profit in Hong Kong, and its Chinese subsidiaries are subject to a **25%** corporate income tax rate, with some high-tech and small-profit enterprises enjoying preferential rates - Group entities incorporated in the Cayman Islands and British Virgin Islands are **exempt from any income tax**[226](index=226&type=chunk)[227](index=227&type=chunk) - Hong Kong profits tax rate is **16.5%**, with no taxable profit during the reporting period, thus no provision was made[228](index=228&type=chunk)[232](index=232&type=chunk) - China corporate income tax is provided at a rate of **25%**; subsidiary Shanghai Ruosheng Mika Information Technology Co., Ltd., as a high-tech enterprise, enjoys a preferential income tax rate of **15%**[230](index=230&type=chunk)[231](index=231&type=chunk)[234](index=234&type=chunk) - Some Chinese subsidiaries qualify as "small-profit enterprises" and enjoy a two-tiered preferential tax rate: the first **RMB 1 million** is taxed at **20%**, and the excess is taxed at **25%**[235](index=235&type=chunk)[236](index=236&type=chunk) Summary of Income Tax Expense (Credit) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Current Income Tax — China Current Tax | 6,643 | 1,898 | | Deferred Tax | (2,965) | (2,753) | | **Total** | **3,678** | **(855)** | [12 Earnings (Loss) Per Share](index=50&type=section&id=12%20EARNING%20(LOSS)%20PER%20SHARE) For the six months ended June 30, 2025, basic earnings per share attributable to owners of the Company improved to **RMB 0.06** from a loss of **RMB 0.03** per share in the prior year, with diluted earnings per share being the same as basic earnings per share due to no outstanding potential ordinary shares in both periods Summary of Earnings (Loss) Per Share | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Profit (Loss) Attributable to Owners of the Company (RMB '000) | 6,317 | (3,493) | | Weighted Average Number of Ordinary Shares in Issue | 109,602,200 | 123,421,612 | | Basic Earnings (Loss) Per Share (RMB) | 0.06 | (0.03) | - Diluted earnings (loss) per share for both periods were the same as basic earnings per share, as there were no outstanding potential ordinary shares in either period[242](index=242&type=chunk)[245](index=245&type=chunk) [13 Dividend](index=50&type=section&id=13%20DIVIDEND) For the six months ended June 30, 2025, the company neither paid nor declared any dividends, consistent with the same period last year - No dividends were paid or declared for the six months ended June 30, 2025, nor have any dividends been declared since the end of the interim reporting period (for the six months ended June 30, 2024: nil)[243](index=243&type=chunk)[246](index=246&type=chunk) [14 Plant and Equipment](index=50&type=section&id=14%20PLANT%20AND%20EQUIPMENT) For the six months ended June 30, 2025, additions to plant and equipment amounted to approximately **RMB 0.089 million**, largely consistent with the same period last year, with no disposals of plant and equipment during the period - For the six months ended June 30, 2025, additions to plant and equipment amounted to approximately **RMB 0.089 million** (same period in 2024: **RMB 0.066 million**)[244](index=244&type=chunk)[247](index=247&type=chunk) - For the six months ended June 30, 2025, there were no disposals of plant and equipment (same period in 2024: **RMB 1 thousand**)[244](index=244&type=chunk)[247](index=247&type=chunk) [15 Trade Receivables, Deposits, Other Receivables and Prepayments](index=51&type=section&id=15%20TRADE%20RECEIVABLES%2C%20DEPOSITS%2C%20OTHER%20RECEIVABLES%20AND%20PREPAYMENTS) As of June 30, 2025, net trade receivables increased to **RMB 369.2 million**, primarily aged within **180** days, while total deposits, other receivables, and prepayments amounted to **RMB 113.5 million**, with significant portions being deposits paid to external labor service providers and prepayments for O2O instant retail marketing services to online platforms; the company has strengthened credit management, leading to a decrease in impairment provisions Net Trade Receivables and Ageing Analys