Stock Code 股份代號 : 2291 中期報告 Interim Report 2025 * For identification purposes only * 僅供識別 樂普心泰醫療科技 ( 上海）股份有限公司 LEPU ScienTech Medical Technology (Shanghai) Co., Ltd. Contents 目錄 | Definitions | 2 | | --- | --- | | Corporate Information | 9 | | Financial Highlights | 12 | | Management Discussion and Analysis | 13 | | Other Information | 41 | | Review Report | 48 | | Consolidated Balance Sheet | 49 | | Consolidated Income Statement | 53 | | Consolidated Statement of Cash Flows | 56 | | Consolidated Statement ...

Company Information [Company Overview and Governance Structure](index=3&type=section&id=Company%20Overview%20and%20Governance%20Structure) Beijing Geekplus Technology Co., Ltd. listed on the Main Board of HKEX on July 9, 2025, as a global leader in autonomous mobile robots, maintaining effective corporate governance through its board and committees during the reporting period - The company successfully listed on the Main Board of The Stock Exchange of Hong Kong Limited on **July 9, 2025**, with stock code **2590**[6](index=6&type=chunk)[12](index=12&type=chunk) - The Board of Directors comprises executive, non-executive, and independent non-executive directors, with committees for strategy, audit, remuneration and appraisal, nomination, and corporate governance[5](index=5&type=chunk) - KPMG is the auditor, and legal advisors include Stephen Chow & Co. in association with Commerce & Finance Law Offices (Hong Kong law) and JunHe LLP (PRC law)[5](index=5&type=chunk)[6](index=6&type=chunk) Business Review [Global Leadership in Autonomous Mobile Robot Market](index=5&type=section&id=Global%20Leadership%20in%20Autonomous%20Mobile%20Robot%20Market) The company leads the global autonomous mobile robot market, being the largest warehouse fulfillment robot solution provider by 2024 revenue for six consecutive years, serving over 850 clients across 40+ countries with high repurchase rates - The company is the world's largest warehouse fulfillment robot solution provider, maintaining its leading position for **six consecutive years** (by 2024 revenue)[7](index=7&type=chunk) - As of June 30, 2025, over **66,000 robots** have been delivered to **40+ countries and regions**, serving over **850 end customers** with a repurchase rate exceeding **80%**[7](index=7&type=chunk) [Rapidly Growing Global Business](index=5&type=section&id=Rapidly%20Growing%20Global%20Business) The company achieved rapid order and revenue growth in H1 2025, with orders up 30.1% to RMB 1,759.8 million and revenue up 31.0% to RMB 1,024.7 million, driven by strong global expansion with non-mainland China revenue accounting for 79.5% H1 2025 Business Growth Overview | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Growth (%) | | :--- | :--- | :--- | :--- | | Orders | 1,759.8 | - | 30.1% | | Revenue | 1,024.7 | 782.5 | 31.0% | | Non-mainland China Revenue Share | 79.5% | - | - | - Added over **60 new end customers**, made significant progress in grocery retail and food & beverage sectors, with the largest single order exceeding **RMB 100 million**[8](index=8&type=chunk) - Over **40 new channel partners** added in H1 2025, with over **52 global service stations** and partner sites, **12 spare parts centers**, and over **310 engineers**[8](index=8&type=chunk) [Significantly Improved Profitability](index=6&type=section&id=Significantly%20Improved%20Profitability) In H1 2025, net loss significantly narrowed by 91.3% to RMB 48.0 million, and adjusted net loss by 94.0% to RMB 11.9 million, driven by increased gross profit, cost control, and foreign exchange gains H1 2025 Profitability Improvement | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Narrowing (%) | | :--- | :--- | :--- | :--- | | Net Loss | 48.0 | 550.3 | 91.3% | | Adjusted Net Loss | 11.9 | 197.2 | 94.0% | - Profitability improvement primarily attributed to increased gross profit from higher revenue, effective cost control, and increased foreign exchange gains[10](index=10&type=chunk) [Cutting-Edge Innovative Technology Platforms](index=6&type=section&id=Cutting-Edge%20Innovative%20Technology%20Platforms) The company leverages Hyper+ core algorithm platform for large-scale robot cluster scheduling and Robot Matrix general technology platform for modular, configurable robot innovation and development - The **Hyper+ core algorithm platform** supports cluster scheduling of over **5,000 robots**, covering traffic management, task assignment, warehouse management, and supply chain algorithms[13](index=13&type=chunk) - The **Robot Matrix general robot technology platform** provides modular, configurable integrated technology for efficient robot innovation, design, and development[13](index=13&type=chunk) [Listing on HKEX](index=6&type=section&id=Listing%20on%20HKEX) The company successfully listed on the Main Board of HKEX on July 9, 2025, issuing 161,405,800 H shares at HKD 16.80 per share, with subsequent partial exercise of the over-allotment option - The company successfully listed on the Main Board of HKEX on **July 9, 2025**, issuing **161,405,800 H shares** at an offer price of **HKD 16.80 per share**[12](index=12&type=chunk) - On **August 3, 2025**, the over-allotment option was partially exercised, involving **16,669,800 H shares**, which commenced listing and trading on **August 6**[12](index=12&type=chunk) [Business Outlook](index=7&type=section&id=Business%20Outlook) The company plans to increase R&D in embodied AI, deepen global market penetration, expand its customer base, promote sustainable development with ESG standards, and attract top talent to support strategic goals - Increase R&D investment in **embodied AI technology** and related product businesses, closely collaborating with existing warehouse robot operations, and established Beijing Geekplus Embodied AI Technology Co., Ltd[16](index=16&type=chunk) - Deepen global market presence, focusing on key and high-value customer segments worldwide, strengthening localized sales, operations, and service teams, and expanding robot solutions to related industries[17](index=17&type=chunk) - Promote green and sustainable development with **high ESG standards**, integrating environmental elements into robot solutions, maintaining a green supply chain, and attracting and cultivating top global talent[19](index=19&type=chunk)[20](index=20&type=chunk) Financial Highlights [Key Financial Indicators](index=9&type=section&id=Key%20Financial%20Indicators) In H1 2025, the company achieved RMB 1,024.7 million in revenue, a 31.0% YoY increase, with gross profit up 43.1% to RMB 359.9 million, and net loss and adjusted net loss significantly narrowed by 91.3% and 94.0% respectively, indicating substantial profitability improvement Financial Highlights for the Six Months Ended June 30, 2025 | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | YoY (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,024,722 | 782,455 | 31.0% | | Gross Profit | 359,914 | 251,532 | 43.1% | | Operating Profit (Loss) | (82,162) | (209,250) | (60.7%) | | Profit (Loss) Before Tax | (46,577) | (549,867) | (91.5%) | | Profit (Loss) for the Period | (47,956) | (550,323) | (91.3%) | | Adjusted Profit (Loss) Net (Non-IFRS Measure) | (11,890) | (197,188) | (94.0%) | Management Discussion and Analysis [Revenue Analysis](index=11&type=section&id=Revenue%20Analysis) The Group's H1 2025 revenue grew 31.0% to RMB 1,024.7 million, primarily from robot solution sales (99.9% of total), while RaaS service revenue decreased due to strategic adjustments, with non-mainland China revenue contributing 79.5% Revenue Breakdown by Service | Revenue Source | 2025 (RMB thousand) | Share (%) | 2024 (RMB thousand) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Robot Solution Sales | 1,023,650 | 99.9% | 778,688 | 99.5% | | - Warehouse Fulfillment | 962,455 | 93.9% | 721,610 | 92.2% | | - Industrial Handling | 61,195 | 6.0% | 57,078 | 7.3% | | RaaS Services | 1,072 | 0.1% | 3,767 | 0.5% | | **Total** | **1,024,722** | **100.0%** | **782,455** | **100.0%** | - RaaS service revenue decreased by approximately **71.5%**, primarily due to business strategy adjustments[25](index=25&type=chunk) - Non-mainland China revenue reached **RMB 815.1 million**, accounting for **79.5%** of total revenue[8](index=8&type=chunk) [Costs and Profitability](index=12&type=section&id=Costs%20and%20Profitability) Cost of sales increased by 24.9% to RMB 664.8 million, driving gross profit up 43.1% to RMB 359.9 million and gross margin to 35.1%, with operating loss significantly narrowing by 60.7% to RMB 82.2 million due to higher gross profit and foreign exchange gains Costs and Gross Profit Overview | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | YoY Growth (%) | | :--- | :--- | :--- | :--- | | Cost of Sales | 664,808 | 530,923 | 24.9% | | Gross Profit | 359,914 | 251,532 | 43.1% | | Gross Margin | 35.1% | 32.1% | +3.0pp | | Non-mainland China Gross Margin | 46.2% | 40.8% | +5.4pp | - R&D expenses increased by **10.5%** to **RMB 147.2 million**, primarily due to increased investment in new technology research[28](index=28&type=chunk) - Operating loss narrowed by **60.7%** to **RMB 82.2 million**, mainly due to increased revenue from warehouse fulfillment robot solutions and higher foreign exchange gains[32](index=32&type=chunk) [Non-IFRS Measures](index=14&type=section&id=Non-IFRS%20Measures) Adjusted net loss (non-IFRS) significantly narrowed by 94.0% to RMB 11.9 million, and adjusted EBITDA (non-IFRS) turned positive to RMB 11.6 million, reflecting core operational performance after excluding non-cash or non-recurring items like share-based payments and listing expenses Non-IFRS Measures Reconciliation | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit (Loss) for the Period | (47,956) | (550,323) | | Equity-settled Share-based Payment Expenses | 26,610 | 13,477 | | Listing Expenses | 30,619 | – | | Change in Fair Value of Redeemable Liabilities | (21,163) | 339,658 | | **Adjusted Net Loss** | **(11,890)** | **(197,188)** | | EBITDA (Non-IFRS Measure) | (24,445) | (522,966) | | **Adjusted EBITDA (Non-IFRS Measure)** | **11,621** | **(169,831)** | - Adjusted EBITDA turned positive, primarily due to increased revenue from warehouse fulfillment robot solutions and higher foreign exchange gains[40](index=40&type=chunk) [Liquidity, Capital Structure and Financial Resources](index=16&type=section&id=Liquidity%2C%20Capital%20Structure%20and%20Financial%20Resources) As of June 30, 2025, the company maintained a sound financial position with RMB 725.6 million in cash and deposits, adjusted net current assets of RMB 457.3 million, and an adjusted current ratio of 1.2 times, while total borrowings increased to RMB 563.5 million for working capital needs Liquidity and Borrowings Overview | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Total Cash and Cash Equivalents and Time Deposits | 725.6 | 736.0 | | Adjusted Net Current Assets (excluding redeemable liabilities) | 457.3 | 572.8 | | Adjusted Current Ratio | 1.2 times | 1.2 times | | Total Borrowings | 563.5 | 413.9 | - Excluding redeemable liabilities, the capital gearing ratio was **80.1%** (December 31, 2024: **75.0%**)[49](index=49&type=chunk) - The company established a foreign exchange risk management system, adhering to a 'risk-neutral' principle, utilizing hedging tools like forward contracts, with **no outstanding foreign exchange hedging balances** as of June 30, 2025[50](index=50&type=chunk)[51](index=51&type=chunk) [Employees and Remuneration](index=18&type=section&id=Employees%20and%20Remuneration) As of June 30, 2025, the Group had 998 employees, with sales and marketing personnel being the largest group, and total remuneration costs for H1 increased by 13.8% to RMB 348.4 million Number of Employees by Function (June 30, 2025) | Function | Number of Employees | | :--- | :--- | | Sales and Marketing | 474 | | Research and Development | 404 | | General Management | 67 | | Supply Chain and Manufacturing | 53 | | **Total** | **998** | - Total remuneration costs for the six months ended June 30, 2025, increased to **RMB 348.4 million** from RMB 306.0 million in the same period of 2024[54](index=54&type=chunk) Corporate Governance and Other Information [Corporate Governance and Compliance](index=19&type=section&id=Corporate%20Governance%20and%20Compliance) The company maintains strict corporate governance standards, complying with the Corporate Governance Code since listing, with the Audit Committee reviewing interim results with KPMG, except for the combined roles of Chairman and CEO - The company has complied with the **Corporate Governance Code** since its listing date, with Mr. Zheng Yong serving as both Chairman and CEO, an arrangement the Board believes facilitates unified leadership and efficient decision-making[57](index=57&type=chunk)[58](index=58&type=chunk) - The Audit Committee reviewed the Group's unaudited interim results for the six months ended June 30, 2025, with an independent review conducted by KPMG, the independent auditor[60](index=60&type=chunk) [Weighted Voting Right Structure and Shareholding](index=22&type=section&id=Weighted%20Voting%20Right%20Structure%20and%20Shareholding) The company operates under a weighted voting right structure, with Class A ordinary shares carrying ten votes each and Class B one vote, enabling beneficiaries to exercise voting control for long-term strategy, with detailed disclosures of directors' and major shareholders' interests - The company has a **weighted voting right structure**, where each Class A ordinary share grants its holder **ten votes**, and each Class B ordinary share grants **one vote**[63](index=63&type=chunk) - Weighted Voting Right Beneficiaries (Mr. Zheng, Mr. Li, Mr. Liu, and Mr. Chen) hold Class A ordinary shares through their controlled entities, exercising voting control over the company[64](index=64&type=chunk)[65](index=65&type=chunk) Overview of Directors' Voting Interests in Class A Ordinary Shares (as of the Latest Practicable Date) | Director | Position | Number of Class A Ordinary Shares Held | Approximate Percentage of Beneficial Interest in Total Share Capital | Approximate Percentage of Voting Rights | | :--- | :--- | :--- | :--- | :--- | | Mr. Zheng | Chairman, Executive Director and CEO | 83,351,729 | 6.23% | 25.22% | | Mr. Li | Executive Director and CTO | 56,194,987 | 4.20% | 17.00% | | Mr. Liu | Executive Director and VP | 39,506,859 | 2.95% | 11.96% | | Mr. Chen | Executive Director and VP | 39,506,859 | 2.95% | 11.96% | [Other Significant Matters](index=23&type=section&id=Other%20Significant%20Matters) During the reporting period, the company had no material litigation, declared no interim dividend, and will utilize the HKD 2,813.8 million net proceeds from the global offering as disclosed in the prospectus, with H shares listed and redeemable preference shares converted post-period - The company had **no material litigation or arbitration** as of June 30, 2025[70](index=70&type=chunk) - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025[72](index=72&type=chunk) - Net proceeds from the global offering of approximately **HKD 2,813.8 million** (approximately **RMB 2,570.5 million**) will be used for future plans as stated in the prospectus[73](index=73&type=chunk) - Upon listing on **July 9, 2025**, all issued redeemable preference shares were converted into ordinary shares at a 1:1 conversion ratio, and redeemable liabilities were reclassified from current liabilities to equity[147](index=147&type=chunk) Interim Financial Information Review Report [Independent Auditor's Review Conclusion](index=31&type=section&id=Independent%20Auditor's%20Review%20Conclusion) KPMG reviewed the Group's interim financial report for the six months ended June 30, 2025, in accordance with Hong Kong Standard on Review Engagements 2410, concluding no material non-compliance with IAS 34 - KPMG reviewed the interim financial report in accordance with **Hong Kong Standard on Review Engagements 2410**[88](index=88&type=chunk) - The review concluded that nothing came to the auditor's attention to suggest the interim financial report was not prepared, in all material respects, in accordance with **International Accounting Standard 34**[89](index=89&type=chunk) Consolidated Statement of Profit or Loss and Other Comprehensive Income [Profit or Loss and Comprehensive Income Overview](index=33&type=section&id=Profit%20or%20Loss%20and%20Comprehensive%20Income%20Overview) For the six months ended June 30, 2025, the company reported RMB 1,024.7 million in revenue and RMB 359.9 million in gross profit, with net loss significantly narrowing to RMB 48.0 million, and total comprehensive loss attributable to equity holders at RMB 70.0 million Summary of Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 1,024,722 | 782,455 | | Gross Profit | 359,914 | 251,532 | | Operating Loss | (82,162) | (209,250) | | Loss Before Tax | (46,577) | (549,867) | | Loss for the Period | (47,956) | (550,323) | | Total Comprehensive Loss Attributable to Equity Holders of the Company | (70,041) | (545,893) | | Basic and Diluted Loss Per Share (RMB) | (0.04) | (0.47) | - Loss for the period significantly narrowed by **91.3%**, primarily due to revenue growth and improved operating efficiency[91](index=91&type=chunk) Consolidated Statement of Financial Position [Assets, Liabilities and Equity Position](index=34&type=section&id=Assets%2C%20Liabilities%20and%20Equity%20Position) As of June 30, 2025, total assets were RMB 3,703.6 million, with current assets at RMB 3,375.5 million; net current liabilities were RMB 6,570.1 million, primarily due to redeemable liabilities, but the company's financial position is sound when excluding these liabilities, with total net liabilities at RMB 6,292.2 million Summary of Consolidated Statement of Financial Position | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current Assets | 328,118 | 275,795 | | Current Assets | 3,375,488 | 2,928,635 | | Current Liabilities | 9,945,622 | 9,404,464 | | Net Current Liabilities | (6,570,134) | (6,475,829) | | Non-current Liabilities | 50,214 | 48,765 | | Net Liabilities | (6,292,230) | (6,248,799) | | Share Capital | 1,159,211 | 1,159,211 | | Reserves | (7,451,441) | (7,408,010) | | Total Deficit Attributable to Equity Holders of the Company | (6,292,230) | (6,248,799) | - Net current liabilities and net liabilities were primarily due to redeemable liabilities (**RMB 7,027.5 million**) presented as current liabilities[93](index=93&type=chunk)[134](index=134&type=chunk) - Inventories increased to **RMB 1,441.4 million**, and trade and bills receivables increased to **RMB 726.2 million**[93](index=93&type=chunk) Consolidated Statement of Changes in Equity [Overview of Changes in Equity](index=36&type=section&id=Overview%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, the total deficit attributable to equity holders increased from RMB 6,248.8 million to RMB 6,292.2 million, reflecting a period loss of RMB 48.0 million, other comprehensive loss of RMB 22.1 million, and a RMB 26.6 million increase in share-based payment expenses Summary of Consolidated Statement of Changes in Equity | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Share Capital | 1,159,211 | 1,159,211 | | Capital Reserve | (2,930,939) | (2,930,939) | | Share-based Payment Reserve | 109,100 | 82,490 | | Exchange Reserve | (43,014) | (20,929) | | Accumulated Losses | (4,586,588) | (4,538,632) | | **Total** | **(6,292,230)** | **(6,248,799)** | - Loss for the period was **RMB 47.956 million**, and other comprehensive income was a loss of **RMB 22.085 million**[97](index=97&type=chunk) - Equity-settled share-based payment expenses increased by **RMB 26.610 million**[97](index=97&type=chunk) Condensed Consolidated Statement of Cash Flows [Cash Flow Overview](index=37&type=section&id=Cash%20Flow%20Overview) For the six months ended June 30, 2025, net cash used in operating activities significantly decreased to RMB 110.1 million, net cash used in investing activities was RMB 58.9 million, and net cash from financing activities turned positive at RMB 130.9 million, resulting in cash and cash equivalents of RMB 625.6 million at period-end Summary of Condensed Consolidated Statement of Cash Flows | Activity Type | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (110,069) | (281,658) | | Net Cash Used in Investing Activities | (58,890) | (63,534) | | Net Cash From / (Used in) Financing Activities | 130,871 | (100,587) | | Net Decrease in Cash and Cash Equivalents | (38,088) | (445,779) | | Cash and Cash Equivalents at June 30 | 625,621 | 310,905 | - Net cash used in operating activities significantly decreased, indicating improved operating efficiency[99](index=99&type=chunk) - Financing activities shifted from a net cash outflow to a net inflow compared to the prior year, primarily due to increased proceeds from bank loans[99](index=99&type=chunk) Notes to the Unaudited Interim Financial Report [Corporate Information and Basis of Preparation](index=38&type=section&id=Corporate%20Information%20and%20Basis%20of%20Preparation) The company, established in China in 2015 and restructured in 2021, primarily sells robot solutions and provides RaaS services; the interim financial report is prepared under IAS 34 on a going concern basis, with redeemable liabilities reclassified to equity post-listing, mitigating going concern uncertainties - The Group primarily engages in the sale of robot solutions and provision of **Robots-as-a-Service (RaaS)**[101](index=101&type=chunk) - The interim financial report is prepared in accordance with **International Accounting Standard 34** and on a **going concern basis**[102](index=102&type=chunk) - As of June 30, 2025, the Group had net liabilities of **RMB 6,292.2 million** and net current liabilities of **RMB 6,570.1 million**, primarily due to redeemable liabilities[103](index=103&type=chunk) - Post-listing, preferential rights were waived, and redeemable liabilities were reclassified from liabilities to equity, leading directors to believe there are **no material uncertainties regarding going concern**[103](index=103&type=chunk) [Loss Per Share Calculation](index=43&type=section&id=Loss%20Per%20Share%20Calculation) For the six months ended June 30, 2025, basic loss per share significantly narrowed to RMB 0.04 from RMB 0.47, with diluted loss per share remaining the same as basic due to the anti-dilutive effect of redeemable ordinary shares Loss Per Share Overview | Metric | 2025 (RMB) | 2024 (RMB) | | :--- | :--- | :--- | | Basic Loss Per Share | (0.04) | (0.47) | | Diluted Loss Per Share | (0.04) | (0.47) | - Basic loss per share is calculated based on a loss attributable to ordinary equity holders of the company of **RMB 12.1 million** and a weighted average of **292.3 million** ordinary shares outstanding[117](index=117&type=chunk)[119](index=119&type=chunk) - Diluted loss per share is the same as basic loss per share because the inclusion of redeemable ordinary shares would result in an **anti-dilutive effect**[120](index=120&type=chunk)[121](index=121&type=chunk) [Inventories and Receivables](index=45&type=section&id=Inventories%20and%20Receivables) As of June 30, 2025, total inventories were RMB 1,441.4 million, predominantly finished goods, and trade and bills receivables totaled RMB 726.2 million, with approximately 78% due within one year, while some inventories were pledged for bank loans Inventories Composition (June 30, 2025) | Inventory Type | Amount (RMB thousand) | | :--- | :--- | | Finished Goods | 1,387,131 | | Work in Progress | 31,992 | | Raw Materials | 189,995 | | Less: Inventory Write-downs | (167,764) | | **Total** | **1,441,354** | Ageing Analysis of Trade and Bills Receivables (June 30, 2025) | Ageing | Amount (RMB thousand) | | :--- | :--- | | Within 1 year | 569,276 | | 1 to 2 years | 107,802 | | 2 to 3 years | 42,219 | | 3 to 4 years | 6,915 | | **Total** | **726,212** | - As of June 30, 2025, **RMB 5.7 million** of the Group's inventories were pledged as collateral for bank loans[123](index=123&type=chunk) [Cash and Bank Loans](index=47&type=section&id=Cash%20and%20Bank%20Loans) As of June 30, 2025, cash and cash equivalents totaled RMB 625.6 million, with RMB 185.4 million in mainland China, and total bank loans were RMB 563.5 million, all denominated in RMB, bearing fixed interest rates, and repayable within one year or on demand, with some secured by inventories Composition of Cash and Cash Equivalents (June 30, 2025) | Type | Amount (RMB thousand) | | :--- | :--- | | Cash at Bank | 610,367 | | Time Deposits and Highly Liquid Investments with Original Maturity within Three Months | 15,254 | | **Total** | **625,621** | Bank Loan Composition and Collateral (June 30, 2025) | Loan Type | Amount (RMB thousand) | | :--- | :--- | | Secured (Inventories) | 4,408 | | Unsecured | 559,127 | | **Total** | **563,535** | - All bank loans are denominated in **RMB**, bear interest at fixed rates ranging from **2.30% to 5.15% per annum**, and are repayable within one year or on demand[133](index=133&type=chunk) [Redeemable Liabilities and Capital Reserve](index=49&type=section&id=Redeemable%20Liabilities%20and%20Capital%20Reserve) As of June 30, 2025, redeemable liabilities were RMB 7,027.5 million, which converted to equity post-listing; capital reserve includes the net consideration for share issuance, net assets upon conversion to a joint-stock company, and the amount recognized for redeemable liabilities Changes in Redeemable Liabilities | Metric | Amount (RMB thousand) | | :--- | :--- | | At January 1, 2024 | 6,362,819 | | Change in Fair Value of Redeemable Liabilities | 685,807 | | At December 31, 2024 and January 1, 2025 | 7,048,626 | | Change in Fair Value of Redeemable Liabilities | (21,163) | | **At June 30, 2025** | **7,027,463** | - Redeemable liabilities automatically terminated upon listing and were reclassified to equity[38](index=38&type=chunk)[103](index=103&type=chunk) - Capital reserve includes the difference between net consideration received for share issuance and nominal amount, the difference between net assets upon conversion to a joint-stock company and total par value of issued shares, and the amount recognized for redeemable liabilities[136](index=136&type=chunk) [Significant Related Party Transactions and Post-Reporting Period Events](index=51&type=section&id=Significant%20Related%20Party%20Transactions%20and%20Post-Reporting%20Period%20Events) During the period, key management compensation totaled RMB 18.3 million, with significant equity-settled share-based payment expenses, and the company engaged in goods sales with related party Geekplus Co., Ltd.; post-period, H shares were listed and redeemable preference shares converted to ordinary shares Key Management Personnel Compensation (for the six months ended June 30, 2025) | Compensation Type | Amount (RMB thousand) | | :--- | :--- | | Short-term Employee Benefits | 2,424 | | Contributions to Retirement Plans | 297 | | Equity-settled Share-based Payment Expenses | 15,563 | | **Total** | **18,284** | - Sales of goods to related party **Geekplus Co., Ltd.** amounted to **RMB 49.5 million** for the six months ended June 30, 2025[144](index=144&type=chunk) - On **July 9, 2025**, the company's H shares were listed, with **161,405,800 H shares** issued, and **846,074,883 unlisted shares** converted into H shares[147](index=147&type=chunk) Definitions [Glossary of Terms](index=53&type=section&id=Glossary%20of%20Terms) This section provides definitions for key terms and abbreviations used throughout the report, covering corporate governance, share capital structure, legal and regulatory aspects, and financial terminology, ensuring clear understanding of the content

2025 中期報告 重要提示 本報告分別以中英文兩種文字編製，在對本報告（除按國際財務報告準則編製的中期財務報告除外）的理解 發生歧義時，以中文文本為準，按照國際財務報告準則編製的中期財務報告以英文文本為準。 1. 本公司董事會及董事、高級管理人員保證2025年半年度報告（以下簡稱「本報告」）的真實、準確、完 整，不存在虛假記載、誤導性陳述或者重大遺漏，並承擔個別和連帶的法律責任。 2. 本報告已經公司第二十屆董事會第二十二次會議審議通過。所有董事均親自出席了本次董事會會 議。 3. 按照國際會計準則第34號中期財務報告（「國際會計準則第34號」）編製的中期財務報告未經審計，惟 已由德勤‧關黃陳方會計師事務所根據香港會計師公會頒佈的《香港審閱工作準則第2410號－獨立 核數師對中期財務信息的審閱》的要求進行審閱。 4. 董事長辛傑先生，執行副總裁、財務負責人韓慧華女士聲明：保證本報告中財務報告的真實、準確 和完整。 5. 公司2025年半年度不派發現金紅利，不送紅股，不以公積金轉增股本。 6. 本報告中貨幣幣種未做說明均指人民幣。 7. 本報告涉及的未來計劃、發展戰略等前瞻性陳述，不構成本集團對投資者的實質承 ...

目 錄 2 公司資料 4 管理層討論與分析 14 其他資料 26 中期簡明綜合損益表 27 中期簡明綜合全面損益表 28 中期簡明綜合財務狀況表 30 中期簡明綜合權益變動表 32 中期簡明綜合現金流量表 35 中期簡明綜合財務報表附註 公司資料 公司名稱 招金礦業股份有限公司 公司英文名稱 Zhaojin Mining Industry Company Limited* 法定代表人 姜桂鵬先生 執行董事 姜桂鵬先生 （董事長） 段磊先生 （執行總裁） 王立剛先生 （副總裁兼董事會秘書） 王培武先生 （副總裁） 非執行董事 龍翼先生 （副董事長） 李廣輝先生 欒文敬先生 獨立非執行董事 陳晉蓉女士 蔡思聰先生 魏俊浩先生 申士富先生 監事會成員 冷海祥先生 （監事會主席） 胡進先生 李洪愛女士 （於2025年2月26日獲委任） 趙華女士 （於2025年2月26日辭任） 董事會秘書 王立剛先生 公司秘書 吳嘉雯女士 * 僅供識別 授權代表 姜桂鵬先生 段磊先生 董事會轄下委員會 審計委員會成員 陳晉蓉女士 （審計委員會主席） 蔡思聰先生 魏俊浩先生 戰略委員會成員 姜桂鵬先生 （戰略委員會主席） 龍翼先生 李廣 ...

[Corporate Information](index=2&type=section&id=1.%20Corporate%20Information) [Board of Directors and Committees](index=2&type=section&id=1.1%20Board%20of%20Directors%20and%20Committees) This section discloses the composition and changes of the Board of Directors, including executive and independent non-executive directors, and the membership of the Audit, Remuneration, and Nomination Committees - Executive Director Mr. Zheng Dinggang resigned as Chairman on **July 3, 2025**, and Ms. Yang Sumei resigned as Vice Chairman on **November 8, 2024**. Mr. Xiao Junjia and Ms. Li Tingting were appointed as Executive Directors on **November 8, 2024**, and **December 16, 2024**, respectively[4](index=4&type=chunk)[5](index=5&type=chunk) - Independent Non-executive Directors Mr. Ding Huang and Mr. Xie Tingjun resigned on **May 8, 2025**, and Ms. Han Pingping was appointed on the same date[4](index=4&type=chunk)[6](index=6&type=chunk) - The Audit Committee Chairman is Mr. Feng Zihua, the Remuneration Committee Chairman is Ms. Han Pingping, and the Nomination Committee Chairman is Mr. Xu Jialong[5](index=5&type=chunk)[6](index=6&type=chunk) [Registered and Principal Offices](index=3&type=section&id=1.2%20Registered%20and%20Principal%20Offices) This section provides the company's registered office address in the Cayman Islands and its principal place of business in Hong Kong - The company is registered in the Cayman Islands, with its principal place of business at Unit 02, 26/F, One Harbour Square, 181 Hoi Bun Road, Kwun Tong, Kowloon, Hong Kong[7](index=7&type=chunk)[8](index=8&type=chunk) [Principal Bankers and Investor Relations](index=3&type=section&id=1.3%20Principal%20Bankers%20and%20Investor%20Relations) This section lists the company's principal bankers in Hong Kong and China, along with investor relations contact details including stock code, website, and email - Principal bankers include Dah Sing Bank and The Hongkong and Shanghai Banking Corporation Limited in Hong Kong, and Bank of China Limited in China[7](index=7&type=chunk)[8](index=8&type=chunk) - The company's stock code is **0776**, and investors can contact the Corporate Communications Department via www.776.hk or ir@776.hk[8](index=8&type=chunk)[9](index=9&type=chunk) [Condensed Consolidated Financial Statements](index=4&type=section&id=2.%20Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss](index=4&type=section&id=2.1%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) This section reports the unaudited profit or loss for the six months ended June 30, 2025, showing a slight revenue decrease but a narrowed loss year-on-year Condensed Consolidated Statement of Profit or Loss Key Data (For the six months ended June 30, 2025) | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 27,461 | 28,283 | -2.9% | | Cost of Sales | (14,912) | (21,374) | -30.3% | | Gross Profit | 12,549 | 6,909 | +81.6% | | Other Income | 2,331 | 6,749 | -65.4% | | Distribution Costs | (341) | (1,071) | -68.1% | | Administrative Expenses | (26,542) | (29,257) | -9.3% | | Operating Loss | (12,003) | (16,670) | -28.0% | | Finance Costs | (8,259) | (8,761) | -5.8% | | Loss Before Tax | (20,262) | (25,431) | -20.3% | | Income Tax Expense | (52) | — | N/A | | Loss for the Period | (20,314) | (25,431) | -20.1% | | Loss Attributable to Owners of the Company | (20,046) | (26,039) | -23.0% | | Basic Loss Per Share | (0.06) | (0.08) | -25.0% | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=5&type=section&id=2.2%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This section discloses comprehensive income for the six months ended June 30, 2025, indicating a year-on-year decrease in total comprehensive expenses Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data (For the six months ended June 30, 2025) | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Loss for the Period | (20,314) | (25,431) | -20.1% | | Exchange Differences on Translation of Foreign Operations | 34 | (1,109) | N/A | | Other Comprehensive Income/(Expense) for the Period (After tax) | 34 | (1,109) | N/A | | Total Comprehensive Expense for the Period | (20,280) | (26,540) | -23.6% | | Total Comprehensive Expense Attributable to Owners of the Company | (20,012) | (27,148) | -26.3% | [Condensed Consolidated Statement of Financial Position](index=6&type=section&id=2.3%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This section presents the financial position as of June 30, 2025, showing a slight increase in total assets but significant net current liabilities and net liabilities Condensed Consolidated Statement of Financial Position Key Data (As of June 30, 2025) | Metric | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | **Non-current Assets** | | | | | Property, Plant and Equipment | 7,216 | 8,840 | -18.4% | | Investment Properties | 21,681 | 19,699 | +10.1% | | Intangible Assets | 6,997 | 5,220 | +34.0% | | Total Non-current Assets | 36,990 | 43,418 | -14.8% | | **Current Assets** | | | | | Inventories | 471 | 221 | +113.1% | | Trade Receivables | 10,401 | 19,455 | -46.5% | | Cryptocurrencies | 1,800 | 2,179 | -17.4% | | Cash and Bank Balances | 29,719 | 8,491 | +249.9% | | Total Current Assets | 53,844 | 43,741 | +23.1% | | **Current Liabilities** | | | | | Trade Payables | 2,066 | 3,786 | -45.4% | | Other Borrowings | 25,000 | — | N/A | | Loans from Related Parties | 190,683 | 212,721 | -10.4% | | Total Current Liabilities | 260,109 | 260,541 | -0.2% | | **Net** | | | | | Net Current Liabilities | (206,265) | (216,800) | +4.9% | | Net Liabilities | (172,922) | (179,250) | +3.5% | [Condensed Consolidated Statement of Changes in Equity](index=8&type=section&id=2.4%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This section reports changes in equity for the six months ended June 30, 2025, showing a reduced total comprehensive loss and capital injections during the period Condensed Consolidated Statement of Changes in Equity Key Data (For the six months ended June 30, 2025) | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Total Equity of the Group as at January 1 | (179,250) | (252,815) | | Total Comprehensive Loss for the Period | (20,280) | (26,540) | | Capital Contribution | 26,608 | 148 | | Total Equity of the Group as at June 30 | (172,922) | (279,207) | [Condensed Consolidated Statement of Cash Flows](index=9&type=section&id=2.5%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This section discloses cash flows for the six months ended June 30, 2025, indicating a shift from negative to positive operating cash flow and a significant increase in cash and cash equivalents Condensed Consolidated Statement of Cash Flows Key Data (For the six months ended June 30, 2025) | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | |

Company Information This section provides essential corporate details, including board members, committees, key personnel, registered offices, and financial advisors [Board of Directors](index=3&type=section&id=Board%20of%20Directors) This section lists the company's Board of Directors, including executive directors Mr. Li Thet (Chairman) and Ms. Wong Yuet Lin (Chief Executive Officer), and three independent non-executive directors - The Board of Directors is chaired by **Mr. Li Thet**, with **Ms. Wong Yuet Lin** serving as Chief Executive Officer[3](index=3&type=chunk) [Audit Committee](index=3&type=section&id=Audit%20Committee) The Audit Committee is chaired by Ms. Leung Tsz Ying, with Mr. Wong Po Keung and Mr. Lau Chun Ho as members - The Audit Committee is chaired by **Ms. Leung Tsz Ying**[3](index=3&type=chunk) [Remuneration Committee](index=3&type=section&id=Remuneration%20Committee) The Remuneration Committee is chaired by Mr. Wong Po Keung, with Mr. Li Thet, Mr. Lau Chun Ho, and Ms. Leung Tsz Ying as members - The Remuneration Committee is chaired by **Mr. Wong Po Keung**[3](index=3&type=chunk) [Nomination Committee](index=3&type=section&id=Nomination%20Committee) The Nomination Committee is chaired by Mr. Li Thet, with Mr. Wong Po Keung, Mr. Lau Chun Ho, and Ms. Leung Tsz Ying as members - The Nomination Committee is chaired by **Mr. Li Thet**[3](index=3&type=chunk) [Company Secretary](index=3&type=section&id=Company%20Secretary) Mr. Yip Kit Chau serves as the Company Secretary - The Company Secretary is **Mr. Yip Kit Chau**[3](index=3&type=chunk) [Authorized Representatives](index=3&type=section&id=Authorized%20Representatives) Mr. Li Thet and Mr. Yip Kit Chau are the company's authorized representatives - The authorized representatives are **Mr. Li Thet** and **Mr. Yip Kit Chau**[3](index=3&type=chunk) [Auditor](index=3&type=section&id=Auditor) The company's auditor is PricewaterhouseCoopers - The company's auditor is **PricewaterhouseCoopers**[3](index=3&type=chunk) [Registered Office](index=3&type=section&id=Registered%20Office) The company's registered office is located at Cricket Square, Cayman Islands - The company's registered office is located at **Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman KY1-1111, Cayman Islands**[3](index=3&type=chunk) [Principal Place of Business in Hong Kong](index=3&type=section&id=Principal%20Place%20of%20Business%20in%20Hong%20Kong) The company's principal place of business in Hong Kong is Unit 813, 8th Floor, 68 Kimberley Road, Tsim Sha Tsui, Kowloon - The company's principal place of business in Hong Kong is **Unit 813, 8th Floor, 68 Kimberley Road, Tsim Sha Tsui, Kowloon, Hong Kong**[3](index=3&type=chunk) [Principal Share Registrar and Transfer Office in Cayman Islands](index=3&type=section&id=Principal%20Share%20Registrar%20and%20Transfer%20Office%20in%20Cayman%20Islands) The principal share registrar and transfer office in the Cayman Islands is Conyers Trust Company (Cayman) Limited - The principal share registrar and transfer office in the Cayman Islands is **Conyers Trust Company (Cayman) Limited**[3](index=3&type=chunk) [Hong Kong Share Registrar and Transfer Office](index=4&type=section&id=Hong%20Kong%20Share%20Registrar%20and%20Transfer%20Office) The Hong Kong share registrar and transfer office is Tricor Investor Services Limited - The Hong Kong share registrar and transfer office is **Tricor Investor Services Limited**[4](index=4&type=chunk) [Legal Advisers](index=4&type=section&id=Legal%20Advisers) The legal advisers as to Hong Kong law are Linklaters - The legal advisers as to Hong Kong law are **Linklaters**[4](index=4&type=chunk) [Principal Bankers](index=4&type=section&id=Principal%20Bankers) The company's principal bankers include DBS Bank Ltd. and Bank of Communications Co., Ltd. Hong Kong Branch - Principal bankers include **DBS Bank Ltd.** and **Bank of Communications Co., Ltd. Hong Kong Branch**[4](index=4&type=chunk) [Company Website](index=4&type=section&id=Company%20Website) The company's website is www.fsmtech.com, but information on the website does not form part of this interim report - The company's website is **www.fsmtech.com**[4](index=4&type=chunk) [Stock Code](index=4&type=section&id=Stock%20Code) The company's stock code is 1721 - The company's stock code is **1721**[4](index=4&type=chunk) [Condensed Consolidated Statement of Profit or Loss](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) During the reporting period, the company's revenue increased by 13.3% year-on-year to 7,981 Thousand SGD, and gross profit rose to 3,604 Thousand SGD, with gross margin improving to 45.2%; however, due to net exchange losses and increased mobile game R&D expenses, loss attributable to owners expanded to 3,973 Thousand SGD 2025 First Half Condensed Consolidated Statement of Profit or Loss Key Data (Thousand SGD) | Indicator | Six Months Ended 30 June 2025 | Six Months Ended 30 June 2024 | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 7,981 | 7,043 | +13.3% | | Cost of sales | (4,377) | (4,228) | +3.5% | | Gross profit | 3,604 | 2,815 | +28.0% | | Other income | 50 | 13 | +284.6% | | Other (losses)/gains, net | (2,868) | 1,181 | -343.0% | | Selling and distribution expenses | (388) | (229) | +69.4% | | Administrative expenses | (2,271) | (2,575) | -11.8% | | Mobile game R&D expenses | (1,547) | (1,432) | +8.0% | | Operating loss | (3,420) | (227) | +1406.6% | | Finance (costs)/income, net | (169) | 110 | -253.6% | | Loss before income tax | (3,589) | (117) | +2976.1% | | Income tax expense | (384) | (296) | +29.7% | | Loss for the period attributable to owners of the Company | (3,973) | (413) | +862.0% | | Basic and diluted loss per share (Singapore cents) | (0.3973) | (0.0413) | +862.0% | - Gross margin improved from **40.0%** in the same period of 2024 to **45.2%** in 2025[63](index=63&type=chunk) - Net exchange (losses)/gains shifted from a gain of **1,181 Thousand SGD** in 2024 to a loss of **2,870 Thousand SGD** in 2025, significantly contributing to the expanded loss[31](index=31&type=chunk)[64](index=64&type=chunk) [Condensed Consolidated Statement of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended 30 June 2025, the company reported a total comprehensive loss of 2,291 Thousand SGD, an increase from 900 Thousand SGD in the prior year, primarily due to increased loss for the period, partially offset by other comprehensive income from currency translation differences 2025 First Half Condensed Consolidated Statement of Comprehensive Income Key Data (Thousand SGD) | Indicator | Six Months Ended 30 June 2025 | Six Months Ended 30 June 2024 | | :--- | :--- | :--- | | Loss for the period | (3,973) | (413) | | Currency translation differences | 1,682 | (487) | | Other comprehensive income/(loss) for the period, net of tax | 1,682 | (487) | | Total comprehensive loss for the period attributable to owners of the Company | (2,291) | (900) | - Currency translation differences shifted from a loss of **487 Thousand SGD** in the same period of 2024 to a gain of **1,682 Thousand SGD** in 2025, positively impacting comprehensive income[6](index=6&type=chunk) [Condensed Consolidated Statement of Financial Position](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of 30 June 2025, the company's total assets were 48,216 Thousand SGD, a decrease from 31 December 2024, with total equity at 27,870 Thousand SGD and total liabilities at 20,346 Thousand SGD, where non-current liabilities represent a larger proportion 30 June 2025 Condensed Consolidated Statement of Financial Position Key Data (Thousand SGD) | Indicator | 30 June 2025 | 31 December 2024 | Change (%) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Non-current assets | 10,083 | 10,600 | -4.9% | | Current assets | 38,133 | 41,294 | -7.6% | | **Total assets** | **48,216** | **51,894** | **-7.1%** | | **Equity** | | | | | Total equity | **27,870** | **30,161** | **-7.5%** | | **Liabilities** | | | | | Non-current liabilities | 15,168 | 16,004 | -5.2% | | Current liabilities | 5,178 | 5,729 | -9.6% | | **Total liabilities** | **20,346** | **21,733** | **-6.5%** | | **Total equity and liabilities** | **48,216** | **51,894** | **-7.1%** | - Cash and cash equivalents decreased from **36,225 Thousand SGD** to **32,773 Thousand SGD**, reflecting cash outflows[7](index=7&type=chunk) - Accumulated losses shifted from a retained profit of **3,624 Thousand SGD** as of 31 December 2024 to a loss of **358 Thousand SGD** as of 30 June 2025[7](index=7&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) As of 30 June 2025, the company's total equity decreased from 30,161 Thousand SGD at the beginning of the year to 27,870 Thousand SGD, primarily due to a loss for the period of 3,973 Thousand SGD, partially offset by a 1,682 Thousand SGD increase in reserves from currency translation differences 2025 First Half Condensed Consolidated Statement of Changes in Equity Key Data (Thousand SGD) | Indicator | Balance at 1 January 2025 | Loss for the period | Currency translation differences | Balance at 30 June 2025 | | :--- | :--- | :--- | :--- | :--- | | Share capital | 1,695 | – | – | 1,695 | | Reserves | 24,842 | – | 1,682 | 26,533 | | (Accumulated losses)/Retained earnings | 3,624 | (3,973) | – | (358) | | **Total equity** | **30,161** | **(3,973)** | **1,682** | **27,870** | - In the first half of 2025, reserves increased by **1,682 Thousand SGD** due to currency translation differences, compared to a decrease of **487 Thousand SGD** in the same period of 2024[8](index=8&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended 30 June 2025, net cash used in operating activities was 3,315 Thousand SGD, net cash generated from investing activities was 214 Thousand SGD, and net cash used in financing activities was 296 Thousand SGD, resulting in a net decrease of 3,397 Thousand SGD in cash and cash equivalents 2025 First Half Condensed Consolidated Statement of Cash Flows Key Data (Thousand SGD) | Indicator | Six Months Ended 30 June 2025 | Six Months Ended 30 June 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | (3,315) | (304) | | Net cash generated from investing activities | 214 | 369 | | Net cash used in financing activities | (296) | (310) | | Net decrease in cash and cash equivalents | (3,397) | (245) | | Cash and cash equivalents at 1 January | 36,225 | 38,936 | | Effect of exchange rate changes | (55) | 19 | | Cash and cash equivalents at 30 June | 32,773 | 38,710 | - Net cash used in operating activities significantly increased from **304 Thousand SGD** in the same period of 2024 to **3,315 Thousand SGD** in 2025[9](index=9&type=chunk) - Cash inflow from investing activities primarily stemmed from **271 Thousand SGD** in interest received, while property, plant and equipment purchases amounted to **60 Thousand SGD**[9](index=9&type=chunk) [Notes to the Condensed Consolidated Interim Financial Information](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Information) This section details the basis of preparation, significant accounting policies, estimates, financial risk management, segment information, revenue breakdown, other gains/losses, finance income/costs, income tax expense, loss per share, dividend policy, balance sheet item specifics, capital commitments, and related party transactions for the condensed consolidated interim financial information - The Group primarily engages in **precision engineering, sheet metal fabrication, and online mobile game development and publishing**[10](index=10&type=chunk) - Financial information is presented in **Singapore Dollars (SGD)** and prepared in accordance with **International Accounting Standard 34 "Interim Financial Reporting"**[11](index=11&type=chunk)[12](index=12&type=chunk) [General Information](index=9&type=section&id=General%20Information) This section introduces FSM Holdings Limited and its subsidiaries (the Group), outlining their principal business activities in precision engineering, sheet metal fabrication, and online mobile game development and publishing, and states the company's incorporation in the Cayman Islands - The Group's principal activities are **precision engineering, sheet metal fabrication, and online mobile game development and publishing**[10](index=10&type=chunk) - The Company was incorporated in the **Cayman Islands on 5 February 2018**[10](index=10&type=chunk) - The condensed consolidated interim financial information is presented in **Singapore Dollars ("SGD")**[11](index=11&type=chunk) [Basis of Preparation](index=9&type=section&id=Basis%20of%20Preparation) This section clarifies that the condensed consolidated interim financial information is prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and should be read in conjunction with the Group's annual financial statements for the year ended 31 December 2024 - The condensed consolidated interim financial information is prepared in accordance with **International Accounting Standard 34 "Interim Financial Reporting"**[12](index=12&type=chunk) - It should be read in conjunction with the Group's annual financial statements for the year ended **31 December 2024**[12](index=12&type=chunk) [Significant Accounting Policies](index=9&type=section&id=Significant%20Accounting%20Policies) This section states that the accounting policies applied in preparing these condensed consolidated interim financial statements are consistent with those followed in the annual consolidated financial statements, and lists adopted and unadopted standard amendments - The accounting policies applied in preparing these condensed consolidated interim financial statements are **consistent with those followed in the annual consolidated financial statements for the year ended 31 December 2024**[13](index=13&type=chunk) [Amendments to Standards Adopted by the Group](index=9&type=section&id=Amendments%20to%20Standards%20Adopted%20by%20the%20Group) This section lists amendments to standards that became mandatory for accounting periods beginning on or after 1 January 2025 and have been adopted by the Group, noting no significant impact on the Group's results or financial position - The adoption of amendments to **IAS 21 and IFRS 1 "Lack of Exchangeability"** had no significant impact on the Group's results and financial position[14](index=14&type=chunk) [Current Standards Amendments Not Yet Adopted](index=10&type=section&id=Current%20Standards%20Amendments%20Not%20Yet%20Adopted) This section lists issued but not yet effective standard amendments that have not been early adopted by the Group, and anticipates no material impact on the Group's financial statements - Unadopted standard amendments include **IFRS 10 and IAS 28 (Amendments) "Sale or Contribution of Assets between an Investor and its Associate or Joint Venture"**[15](index=15&type=chunk) - These new standards, amendments, and annual improvements are not expected to have a **material impact** on the Group's transactions for the current or future reporting periods and the foreseeable future[15](index=15&type=chunk) [Estimates and Financial Risk Management](index=10&type=section&id=Estimates%20and%20Financial%20Risk%20Management) This section explains that preparing interim financial information requires management judgments, estimates, and assumptions, and notes that the Group faces market, credit, and liquidity risks, with no changes in risk management policies since 31 December 2024 - The preparation of interim financial information requires management to make **judgments, estimates, and assumptions**, and actual results may differ from these estimates[16](index=16&type=chunk) - The Group's business is exposed to various financial risks: **market risk (including foreign currency risk and interest rate risk), credit risk, and liquidity risk**[17](index=17&type=chunk) - Risk management policies have **not changed** since 31 December 2024[18](index=18&type=chunk) [Estimates](index=10&type=section&id=Estimates) This section emphasizes that the significant judgments and sources of estimation uncertainty made by management in applying accounting policies for interim financial information are the same as those for the annual consolidated financial statements - The significant judgments made by management in applying accounting policies and the key sources of estimation uncertainty are **the same as those applied to the consolidated financial statements for the year ended 31 December 2024**[16](index=16&type=chunk) [Financial Risk Management](index=11&type=section&id=Financial%20Risk%20Management) This section outlines the financial risk factors faced by the Group, including market risk, credit risk, and liquidity risk, and states that the carrying amounts of most financial instruments are reasonable approximations of fair value, except for specific items - The Group's business is exposed to various financial risks: **market risk (including foreign currency risk and interest rate risk), credit risk, and liquidity risk**[17](index=17&type=chunk) - Except for rental deposits, trade and other receivables, the company has no other significant financial instruments, and the carrying amounts of these balances, net of impairment, are **reasonable approximations of fair value**[19](index=19&type=chunk) [Segment Information](index=11&type=section&id=Segment%20Information) The Group's chief operating decision maker identifies two reportable segments: manufacturing business and online business, with manufacturing revenue growing by 10.5% and online business revenue by 32.4% - The Group identifies two reportable segments: **manufacturing business (precision engineering and sheet metal fabrication)** and **online business (development, publishing, and operation of online mobile games)**[20](index=20&type=chunk)[21](index=21&type=chunk) Segment Revenue (Thousand SGD) | Segment | Six Months Ended 30 June 2025 | Six Months Ended 30 June 2024 | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Manufacturing business | 6,797 | 6,149 | +10.5% | | Online business | 1,184 | 894 | +32.4% | | **Total** | **7,981** | **7,043** | **+13.3%** | [Overview of Segments and Principal Businesses](index=11&type=section&id=Overview%20of%20Segments%20and%20Principal%20Businesses) This section details the Group's two main reportable segments: the manufacturing business, focused on precision engineering and sheet metal fabrication, and the online business, dedicated to developing, publishing, and operating online mobile games - The manufacturing business focuses on **sheet metal fabrication for precision engineering and precision machining services**[20](index=20&type=chunk) - The online business develops, publishes, and operates **online mobile games**[21](index=21&type=chunk) [Segment Profit/(Loss) Before Income Tax](index=12&type=section&id=Segment%20Profit%2F(Loss)%20Before%20Income%20Tax) The manufacturing business recorded a reportable segment result of 1,369 Thousand SGD in the first half of 2025, while the online business recorded a loss of 2,232 Thousand SGD, leading to a Group loss before income tax of 3,589 Thousand SGD Segment Results (Thousand SGD) | Segment | Six Months Ended 30 June 2025 | Six Months Ended 30 June 2024 | | :--- | :--- | :--- | | Manufacturing business | 1,369 | 2,251 | | Online business | (2,232) | (2,374) | | **Total reportable segment results** | **(863)** | **(123)** | | Loss before income tax | (3,589) | (117) | - Revenue growth in the manufacturing business primarily came from revenue recognized **"at a point in time"**, while all online business revenue was recognized **"over time"**[22](index=22&type=chunk) [Segment Assets](index=13&type=section&id=Segment%20Assets) As of 30 June 2025, manufacturing business assets totaled 26,910 Thousand SGD, and online business assets were 1,125 Thousand SGD, bringing total segment assets to 28,035 Thousand SGD Segment Assets (Thousand SGD) | Segment | 30 June 2025 | 31 December 2024 | | :--- | :--- | :--- | | Manufacturing business | 26,910 | 35,081 | | Online business | 1,125 | 2,369 | | **Total segment assets** | **28,035** | **37,450** | | Corporate assets | 20,181 | 14,444 | | **Total assets** | **48,216** | **51,894** | - Total non-current assets by location show **7,045 Thousand SGD** in Singapore and **2,797 Thousand SGD** in Malaysia[24](index=24&type=chunk) [Segment Liabilities](index=14&type=section&id=Segment%20Liabilities) As of 30 June 2025, manufacturing business liabilities were 3,793 Thousand SGD, and online business liabilities were 696 Thousand SGD, totaling 4,489 Thousand SGD for segment liabilities Segment Liabilities (Thousand SGD) | Segment | 30 June 2025 | 31 December 2024 | | :--- | :--- | :--- | | Manufacturing business | 3,793 | 3,423 | | Online business | 696 | 1,636 | | **Total segment liabilities** | **4,489** | **5,059** | | Corporate liabilities | 15,857 | 16,674 | | **Total liabilities** | **20,346** | **21,733** | [Disaggregation of Revenue from Contracts with Customers](index=14&type=section&id=Disaggregation%20of%20Revenue%20from%20Contracts%20with%20Customers) The Group's revenue primarily originates from Singaporean customers, who contributed 6,797 Thousand SGD in the first half of 2025, with other countries contributing 1,184 Thousand SGD Revenue by Customer Location (Thousand SGD) | Customer Location | Six Months Ended 30 June 2025 | Six Months Ended 30 June 2024 | | :--- | :--- | :--- | | Singapore | 6,797 | 6,149 | | Other countries | 1,184 | 894 | | **Total** | **7,981** | **7,043** | [Information About Major Customers](index=15&type=section&id=Information%20About%20Major%20Customers) In the first half of 2025, two major customers (Customer A and Customer B) contributed 3,489 Thousand SGD and 2,975 Thousand SGD in revenue, respectively, collectively accounting for 70.9% of total revenue Major Customer Revenue (Thousand SGD) | Customer | Six Months Ended 30 June 2025 | Six Months Ended 30 June 2024 | | :--- | :--- | :--- | | Customer A | 3,489 | 3,381 | | Customer B | 2,975 | 2,447 | - Two customers contributed **over 10%** of the Group's total revenue in both reporting periods[29](index=29&type=chunk) [Revenue](index=15&type=section&id=Revenue) The Group's revenue primarily derives from sales of fabricated sheet metal products, provision of machining services, and sales of in-game virtual items, with sales of goods contributing 6,663 Thousand SGD and sales of in-game virtual items contributing 1,184 Thousand SGD in the first half of 2025 Revenue Composition (Thousand SGD) | Revenue Source | Six Months Ended 30 June 2025 | Six Months Ended 30 June 2024 | | :--- | :--- | :--- | | Sales of goods | 6,663 | 6,123 | | Machining services | 134 | 26 | | Sales of in-game virtual items | 1,184 | 894 | | **Total** | **7,981** | **7,043** | - Revenue from sales of goods increased by **8.8%** year-on-year, machining services by **415.4%**, and sales of in-game virtual items by **32.4%**[30](index=30&type=chunk) [Other (Losses)/Gains, Net](index=16&type=section&id=Other%20(Losses)%2FGains,%20Net) In the first half of 2025, the Group recorded net other losses of 2,868 Thousand SGD, primarily due to net exchange losses of 2,870 Thousand SGD, compared to net exchange gains of 1,181 Thousand SGD in the prior year Other (Losses)/Gains, Net (Thousand SGD) | Indicator | Six Months Ended 30 June 2025 | Six Months Ended 30 June 2024 | | :--- | :--- | :--- | | Net exchange (losses)/gains | (2,870) | 1,181 | | Gain on disposal of property, plant and equipment | 2 | – | | **Total** | **(2,868)** | **1,181** | - Net exchange losses were the primary reason for the shift from net other gains to net other losses[31](index=31&type=chunk) [Finance (Costs)/Income, Net](index=16&type=section&id=Finance%20(Costs)%2FIncome,%20Net) In the first half of 2025, the Group recorded net finance costs of 169 Thousand SGD, mainly comprising the discounted value of shareholder loans (non-cash finance costs) of 417 Thousand SGD and other finance costs, partially offset by bank interest income of 271 Thousand SGD Finance (Costs)/Income, Net (Thousand SGD) | Indicator | Six Months Ended 30 June 2025 | Six Months Ended 30 June 2024 | | :--- | :--- | :--- | | Finance income (bank deposits) | 271 | 536 | | Finance costs (release of discounted value of shareholder loan) | (417) | (396) | | Other finance costs | (23) | (30) | | **Finance (costs)/income, net** | **(169)** | **110** | - Non-cash finance costs from the discounted value of shareholder loans increased from **396 Thousand SGD** in the same period of 2024 to **417 Thousand SGD** in 2025[32](index=32&type=chunk) [Loss Before Income Tax](index=17&type=section&id=Loss%20Before%20Income%20Tax) In the first half of 2025, the Group's loss before income tax significantly increased to 3,589 Thousand SGD from 117 Thousand SGD in the prior year, primarily influenced by cost of inventories sold, employee benefit expenses, depreciation and amortization, and mobile game advertising Loss Before Income Tax Composition (Thousand SGD) | Item | Six Months Ended 30 June 2025 | Six Months Ended 30 June 2024 | | :--- | :--- | :--- | | Cost of inventories sold | 1,684 | 1,565 | | Employee benefit expenses | 3,933 | 4,196 | | Depreciation of property, plant and equipment | 369 | 604 | | Depreciation of right-of-use assets | 166 | 186 | | Mobile game R&D expenses (excluding staff costs, amortisation and depreciation) | 26 | 23 | | Mobile game advertising | 317 | 174 | | Auditor's remuneration (audit services) | 186 | 173 | - Employee benefit expenses decreased from **4,196 Thousand SGD** to **3,933 Thousand SGD**, but mobile game advertising expenses increased from **174 Thousand SGD** to **317 Thousand SGD**[33](index=33&type=chunk) [Income Tax Expense](index=17&type=section&id=Income%20Tax%20Expense) In the first half of 2025, the Group's income tax expense increased to 384 Thousand SGD from 296 Thousand SGD in the prior year, mainly due to increased taxable profits from the Singapore manufacturing business Income Tax Expense (Thousand SGD) | Indicator | Six Months Ended 30 June 2025 | Six Months Ended 30 June 2024 | | :--- | :--- | :--- | | Current income tax | 391 | 343 | | Deferred income tax | (7) | (47) | | **Income tax expense** | **384** | **296** | - Income tax expense increased by **29.7%**, primarily due to increased taxable profits from the **Singapore manufacturing business**[34](index=34&type=chunk)[67](index=67&type=chunk) [Singapore Corporate Income Tax](index=17&type=section&id=Singapore%20Corporate%20Income%20Tax) Singapore corporate income tax is calculated at a rate of 17% and applies to the taxable income of subsidiaries incorporated in Singapore - Singapore corporate income tax is calculated at a rate of **17%**[35](index=35&type=chunk) [Malaysia Corporate Income Tax](index=18&type=section&id=Malaysia%20Corporate%20Income%20Tax) Malaysia corporate income tax is calculated at a rate of 24% and applies to the taxable income of subsidiaries incorporated in Malaysia - Malaysia corporate income tax is calculated at a rate of **24%**[36](index=36&type=chunk) [China Corporate Income Tax](index=18&type=section&id=China%20Corporate%20Income%20Tax) China corporate income tax offers tax incentives for small and micro-profit enterprises, with an effective tax rate of 5% on the first 3 million RMB of annual taxable income - For small and micro-profit enterprises, the effective corporate income tax rate is **5%** on the first **3 million RMB** of annual taxable income[37](index=37&type=chunk) [Hong Kong Profits Tax](index=18&type=section&id=Hong%20Kong%20Profits%20Tax) Hong Kong profits tax operates on a two-tiered system, with the first 2 million HKD of assessable profits taxed at 8.25% and the remainder at 16.5%; no provision for profits tax was made for the Group's Hong Kong subsidiaries during the reporting period due to absence of taxable profits - Hong Kong profits tax two-tiered system: **8.25%** on the first **2 million HKD** of profits, and **16.5%** on the remainder[38](index=38&type=chunk) - No Hong Kong profits tax provision was made for the Group's Hong Kong-incorporated subsidiaries for the six months ended 30 June 2025, as they generated **no assessable profits** in or derived from Hong Kong[38](index=38&type=chunk) [Cayman Islands and British Virgin Islands Corporate Income Tax](index=18&type=section&id=Cayman%20Islands%20and%20British%20Virgin%20Islands%20Corporate%20Income%20Tax) The Group is not subject to any corporate income tax in the Cayman Islands and British Virgin Islands - The Group is **not subject to any tax** in the Cayman Islands and British Virgin Islands[39](index=39&type=chunk) [Loss Per Share](index=18&type=section&id=Loss%20Per%20Share) In the first half of 2025, basic loss per share significantly increased to 0.3973 Singapore cents from 0.0413 Singapore cents in the prior year, with diluted loss per share being the same as basic loss per share due to the absence of potentially dilutive shares Loss Per Share (Singapore cents) | Indicator | Six Months Ended 30 June 2025 | Six Months Ended 30 June 2024 | | :--- | :--- | :--- | | Loss attributable to owners of the Company (Thousand SGD) | (3,973) | (413) | | Weighted average number of ordinary shares in issue (Thousand shares) | 1,000,000 | 1,000,000 | | **Basic loss per share (Singapore cents)** | **(0.3973)** | **(0.0413)** | [Basic](index=18&type=section&id=Basic) Basic loss per share is calculated by dividing the loss attributable to owners of the Company by the weighted average number of ordinary shares in issue - Basic loss per share was **0.3973 Singapore cents**[41](index=41&type=chunk) [Diluted](index=18&type=section&id=Diluted) Diluted loss per share is the same as basic loss per share due to the absence of potentially dilutive shares - Diluted loss per share is **equal to basic loss per share** as there are no potentially dilutive shares[41](index=41&type=chunk) [Interim Dividend](index=19&type=section&id=Interim%20Dividend) The Board of Directors does not recommend the payment of an interim dividend for the six months ended 30 June 2025 - The Directors do not recommend the payment of an interim dividend for the six months ended **30 June 2025**[42](index=42&type=chunk) [Property, Plant and Equipment](index=19&type=section&id=Property,%20Plant%20and%20Equipment) As of 30 June 2025, the carrying value of property, plant and equipment was 9,641 Thousand SGD, a decrease from 9,969 Thousand SGD at the beginning of the year, primarily affected by depreciation and currency translation differences Property, Plant and Equipment Movement (Thousand SGD) | Indicator | Six Months Ended 30 June 2025 | Six Months Ended 30 June 2024 | | :--- | :--- | :--- | | At 1 January | 9,969 | 10,685 | | Additions | 60 | 165 | | Depreciation | (369) | (604) | | Currency translation differences | (19) | 10 | | **At 30 June** | **9,641** | **10,256** | - Depreciation expense decreased from **604 Thousand SGD** in the same period of 2024 to **369 Thousand SGD** in 2025[43](index=43&type=chunk) [Trade and Other Receivables](index=20&type=section&id=Trade%20and%20Other%20Receivables) As of 30 June 2025, total trade and other receivables amounted to 2,931 Thousand SGD, with net trade receivables at 2,512 Thousand SGD, and the Group typically grants customers credit terms of 30 to 90 days Trade and Other Receivables (Thousand SGD) | Indicator | 30 June 2025 | 31 December 2024 | | :--- | :--- | :--- | | Trade receivables, net | 2,512 | 2,482 | | Prepayments | 183 | 273 | | Deposits | 74 | 73 | | Other receivables | 162 | 291 | | **Total** | **2,931** | **3,119** | - The aging analysis of trade receivables shows that amounts aged **0 to 30 days** represent the highest proportion at **1,480 Thousand SGD**[44](index=44&type=chunk) [Trade and Other Payables and Provision for Restoration Costs](index=21&type=section&id=Trade%20and%20Other%20Payables%20and%20Provision%20for%20Restoration%20Costs) As of 30 June 2025, total trade and other payables amounted to 3,910 Thousand SGD, including trade payables of 1,399 Thousand SGD and accrued expenses of 2,246 Thousand SGD, with a non-current provision for restoration costs of 102 Thousand SGD Trade and Other Payables and Provision for Restoration Costs (Thousand SGD) | Indicator | 30 June 2025 | 31 December 2024 | | :--- | :--- | :--- | | Non-current: Provision for restoration costs | 102 | 100 | | Current: Trade payables | 1,399 | 913 | | Current: Accrued expenses | 2,246 | 2,660 | | Current: Other payables | 265 | 351 | | **Total** | **4,012** | **4,024** | - Trade payables increased from **913 Thousand SGD** as of 31 December 2024 to **1,399 Thousand SGD** as of 30 June 2025[45](index=45&type=chunk) [Contract Liabilities](index=22&type=section&id=Contract%20Liabilities) As of 30 June 2025, contract liabilities were 119 Thousand SGD, primarily comprising unamortized revenue from sales of in-game virtual items, expected to be fulfilled within one year or less Contract Liabilities (Thousand SGD) | Indicator | 30 June 2025 | 31 December 2024 | | :--- | :--- | :--- | | Sales of in-game virtual items | 119 | 385 | | **Total** | **119** | **385** | - Contract liabilities primarily consist of **unamortized revenue from sales of in-game virtual items**[46](index=46&type=chunk) - The Group expects to fulfill the remaining performance obligations for these contract liabilities within **one year or less**[47](index=47&type=chunk) [Borrowings](index=22&type=section&id=Borrowings) As of 30 June 2025, the Group's total borrowings amounted to 14,138 Thousand SGD, mainly consisting of shareholder loans of 13,928 Thousand SGD and other bank financing Borrowings (Thousand SGD) | Indicator | 30 June 2025 | 31 December 2024 | | :--- | :--- | :--- | | Shareholder loan | 13,928 | 14,589 | | Other bank financing | 210 | 286 | | **Total borrowings** | **14,138** | **14,875** | | Of which: Non-current liabilities | 13,982 | 14,722 | | Of which: Current liabilities | 156 | 153 | - The shareholder loan is **interest-free, unsecured, and for a term of five years**, provided by Maodong Limited, wholly owned by Mr. Li[49](index=49&type=chunk) - Other bank financing is **secured by two machines**[49](index=49&type=chunk) [Share Capital](index=23&type=section&id=Share%20Capital) As of 30 June 2025, the company's authorized share capital was 2,000,000,000 ordinary shares of 0.01 HKD each, with 1,000,000,000 shares issued and fully paid, amounting to 1,695 Thousand SGD - The issued and fully paid share capital consists of **1,000,000,000 ordinary shares of 0.01 HKD each**, with a share capital amount of **1,695 Thousand SGD**[50](index=50&type=chunk) [Capital Commitments](index=23&type=section&id=Capital%20Commitments) As of 30 June 2025, the Group had capital commitments of 90 Thousand SGD, contracted but not provided for, primarily related to the purchase of property, plant and equipment - As of 30 June 2025, the Group had capital commitments of **90 Thousand SGD**, contracted but not provided for in the condensed consolidated interim financial statements, related to the purchase of property, plant and equipment[51](index=51&type=chunk) [Related Party Transactions](index=24&type=section&id=Related%20Party%20Transactions) This section discloses the Group's transactions and balances with related parties, including shareholder loan interest, remuneration for directors' children and spouses, and key management compensation - Related parties include **Mr. Li Thet (Director and Shareholder), Maodong (a company wholly owned by Mr. Li), Ms. Wong Yuet Lin (Director), and their children**[52](index=52&type=chunk) [Names and Relationships with Related Parties](index=24&type=section&id=Names%20and%20Relationships%20with%20Related%20Parties) This section lists the names of related parties with whom the Group has transactions or balances and their relationships with the Group, including directors, shareholders, and their family members - Related parties include **Mr. Li Thet (Director and Shareholder), Maodong (a company wholly owned by Mr. Li), Ms. Wong Yuet Lin (Director), and her children**[52](index=52&type=chunk) [Transactions with Related Parties](index=24&type=section&id=Transactions%20with%20Related%20Parties) This section discloses transactions with related parties for the first half of 2025, including shareholder loan interest from Maodong of 417 Thousand SGD, and remuneration payable or paid to directors' children of 183 Thousand SGD Transactions with Related Parties (Thousand SGD) | Transaction Type | Six Months Ended 30 June 2025 | Six Months Ended 30 June 2024 | | :--- | :--- | :--- | | Interest on shareholder loan from Maodong | 417 | 396 | | Remuneration payable or paid to directors' children | 183 | 115 | | Remuneration payable or paid to directors' spouses | – | 128 | [Key Management Compensation](index=25&type=section&id=Key%20Management%20Compensation) In the first half of 2025, total key management (executive directors) compensation amounted to 350 Thousand SGD, including fees, salaries, allowances, benefits, and defined contribution retirement schemes Key Management Compensation (Thousand SGD) | Compensation Type | Six Months Ended 30 June 2025 | Six Months Ended 30 June 2024 | | :--- | :--- | :--- | | Fees and salaries, other allowances and benefits, bonuses | 340 | 301 | | Defined contribution retirement schemes | 10 | 9 | | **Total** | **350** | **310** | - Key management compensation increased by **12.9%** year-on-year[54](index=54&type=chunk) [Balances with Related Parties](index=25&type=section&id=Balances%20with%20Related%20Parties) As of 30 June 2025, balances with related parties primarily consisted of a shareholder loan from Maodong of 13,928 Thousand SGD Balances with Related Parties (Thousand SGD) | Related Party | 30 June 2025 | 31 December 2024 | | :--- | :--- | :--- | | Shareholder loan from Maodong | 13,928 | 14,589 | [Management Discussion and Analysis](index=25&type=section&id=Management%20Discussion%20and%20Analysis) The Management Discussion and Analysis reviews the Group's manufacturing and online business performance, outlines the global economic outlook, and details the Group's strategies, while financially analyzing changes in revenue, gross profit, expenses, and loss for the period, and disclosing information on liquidity, shareholder loans, capital structure, asset pledges, major investment plans, contingent liabilities, capital commitments, foreign exchange risk, employees, remuneration policies, and share option scheme - The Group is committed to maintaining close relationships with manufacturing business customers, deploying external development strategies, and upgrading machinery to enhance production efficiency and competitiveness[59](index=59&type=chunk) - The Group will continuously review expenses and actively implement measures to reduce production and operating costs to improve overall operational efficiency[59](index=59&type=chunk) - The Group is dedicated to enhancing its online business through the development and optimization of mobile game products, and may explore opportunities to acquire high-quality mobile games from external developers and studios[60](index=60&type=chunk) [Business Review](index=26&type=section&id=Business%20Review) This section reviews the Group's manufacturing and online business performance during the reporting period, noting a 10.5% revenue growth in manufacturing, driven by increased demand in Singapore, and a 32.4% revenue growth in online business, with new games in testing and continuous advertising investment - The Group has two main business segments: **manufacturing business and online business**[56](index=56&type=chunk) [Manufacturing Business](index=26&type=section&id=Manufacturing%20Business) The manufacturing business focuses on precision engineering sheet metal fabrication and precision machining services, with production facilities in Singapore and Malaysia, and in the first half of 2025, revenue was approximately 6.8 million SGD, a 10.5% year-on-year increase, primarily due to rising demand in the Singapore market - The manufacturing business segment is dedicated to **sheet metal fabrication for precision engineering and precision machining services**, with production facilities in **Singapore and Malaysia**[57](index=57&type=chunk) - In the first half of 2025, manufacturing business revenue was approximately **6.8 million SGD**, an increase of **10.5%** year-on-year, primarily due to increased market demand in the **Singapore sheet metal manufacturing industry**[57](index=57&type=chunk) - Output in Singapore's precision engineering sector recorded year-on-year growth of **0.4%** and **10.3%** in Q1 and Q2 2025, respectively, driven by increased capital investment from **AI-related semiconductor manufacturers**[57](index=57&type=chunk) [Online Business](index=26&type=section&id=Online%20Business) The online business focuses on mobile game development, with its latest game in testing across various regions globally and continuous advertising investment, generating approximately 1.2 million SGD in revenue in the first half of 2025, a 32.4% year-on-year increase - The online business has established a dedicated development team focused on creating mobile games for a **global audience**[58](index=58&type=chunk) - During the reporting period, the latest game was in its **testing phase**, undergoing multiple tests in various regions including the **United States, Canada, Europe, and Asian markets**, with continuous investment in advertising and promotion[58](index=58&type=chunk) - In the first half of 2025, the online business generated approximately **1.2 million SGD** in revenue, an increase of **32.4%** year-on-year[58](index=58&type=chunk) [Business Outlook](index=27&type=section&id=Business%20Outlook) Facing global economic uncertainties, the Group will continue to strengthen customer relationships in its manufacturing business, upgrade machinery, reduce costs, optimize its online business, and explore opportunities to acquire high-quality mobile games and diversify revenue streams - The International Monetary Fund forecasts **3.0% global output growth in 2025**, but highlights downside risks such as trade restrictions, geopolitical tensions, and widening fiscal deficits[59](index=59&type=chunk) - The Group will focus on maintaining close relationships with manufacturing business customers, deploying external development strategies, and upgrading machinery and using robotics to **enhance production efficiency and competitiveness**[59](index=59&type=chunk) - The Group will continuously review expenses and actively implement measures to **reduce production and operating costs** to improve overall operational efficiency[59](index=59&type=chunk) - The Group is committed to enhancing its online business through the development and optimization of mobile game products, and may explore opportunities to **acquire high-quality mobile games** from external developers and studios[60](index=60&type=chunk) - The Board will also explore other business opportunities to **diversify revenue sources** and generate long-term sustainable value for shareholders[60](index=60&type=chunk) [Financial Review](index=27&type=section&id=Financial%20Review) The financial review provides a detailed analysis of changes in the Group's revenue, gross profit, various expenses, and loss for the period, indicating that revenue growth was primarily driven by the manufacturing business, but exchange losses led to an overall expanded loss - Group revenue increased by **13.3%** year-on-year, primarily driven by increased market demand in the **Singapore sheet metal manufacturing industry**[61](index=61&type=chunk) - Gross profit grew by **28.0%**, and gross margin improved to **45.2%**, mainly due to increased revenue and improved gross margin in the manufacturing business[63](index=63&type=chunk) - Net exchange losses of approximately **2.9 million SGD** were recorded, compared to net exchange gains of approximately **1.2 million SGD** in the prior year, primarily due to the appreciation of the SGD against the USD and HKD[64](index=64&type=chunk) - Administrative expenses decreased by **11.8%**, mainly due to effective cost-saving measures[65](index=65&type=chunk) - Mobile game R&D expenses increased by **8.0%**, primarily due to increased staff costs incurred in developing and optimizing the Group's mobile games[66](index=66&type=chunk) - Income tax expense increased by **29.7%**, primarily due to increased taxable profits from the **Singapore manufacturing business**[67](index=67&type=chunk) - Loss for the period attributable to owners of the Company expanded to approximately **3.97 million SGD**[68](index=68&type=chunk) [Revenue](index=27&type=section&id=Revenue) In the first half of 2025, the Group's total revenue was 7,981 Thousand SGD, a 13.3% year-on-year increase, with the manufacturing business contributing 85.16% and the online business 14.84% Revenue Details (Thousand SGD) | Business Segment | Six Months Ended 30 June 2025 | Proportion (%) | Six Months Ended 30 June 2024 | Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | Manufacturing business | 6,797 | 85.16 | 6,149 | 87.31 | | Online business | 1,184 | 14.84 | 894 | 12.69 | | **Total** | **7,981** | **100.00** | **7,043** | **100.00** | - Revenue growth was primarily due to **increased market demand in the Singapore sheet metal manufacturing industry**, leading to higher manufacturing business revenue[61](index=61&type=chunk) [Gross Profit and Gross Margin](index=28&type=section&id=Gross%20Profit%20and%20Gross%20Margin) The Group's gross profit increased from 2.8 million SGD to 3.6 million SGD, and gross margin improved from 40.0% to 45.2%, primarily due to increased revenue and improved gross margin in the manufacturing business - Gross profit increased by approximately **0.8 million SGD** to **3.6 million SGD**[63](index=63&type=chunk) - Gross margin increased from **40.0%** to **45.2%**[63](index=63&type=chunk) - The increase in gross profit was primarily due to **increased revenue and improved gross margin in the manufacturing business**[63](index=63&type=chunk) [Other (Losses)/Gains, Net](index=28&type=section&id=Other%20(Losses)%2FGains,%20Net) In the first half of 2025, the Group recorded net exchange losses of approximately 2.9 million SGD, compared to net exchange gains of approximately 1.2 million SGD in the prior year, mainly due to the appreciation of the SGD against the USD and HKD - Net exchange losses of approximately **2.9 million SGD** were recorded, compared to net exchange gains of approximately **1.2 million SGD** in the prior year[64](index=64&type=chunk) - The losses were primarily due to the **appreciation of the SGD against the USD and HKD**[64](index=64&type=chunk) [Administrative Expenses](index=28&type=section&id=Administrative%20Expenses) Administrative expenses decreased by 11.8% from 2.6 million SGD to 2.3 million SGD, primarily due to effective cost-saving measures - Administrative expenses decreased by approximately **0.3 million SGD** or **11.8%** to approximately **2.3 million SGD**[65](index=65&type=chunk) - The decrease was primarily due to **effective cost-saving measures**[65](index=65&type=chunk) [Mobile Game Research and Development Expenses](index=28&type=section&id=Mobile%20Game%20Research%20and%20Development%20Expenses) Mobile game research and development expenses increased from 1.4 million SGD to 1.5 million SGD, primarily due to increased staff costs incurred in developing and optimizing mobile games - R&D expenses increased by approximately **0.1 million SGD** to approximately **1.5 million SGD**[66](index=66&type=chunk) - The increase was primarily due to **increased staff costs incurred in developing and optimizing the Group's mobile games**[66](index=66&type=chunk) [Income Tax Expense](index=28&type=section&id=Income%20Tax%20Expense) Income tax expense increased by 29.7% from 0.3 million SGD to 0.4 million SGD, primarily due to increased taxable profits from the Singapore manufacturing business - Income tax expense increased by approximately **0.1 million SGD** or **29.7%** to approximately **0.4 million SGD**[67](index=67&type=chunk) - The increase primarily stemmed from **increased taxable profits from the Singapore manufacturing business**[67](index=67&type=chunk) [Loss for the Period Attributable to Owners of the Company](index=28&type=section&id=Loss%20for%20the%20Period%20Attributable%20to%20Owners%20of%20the%20Company) Due to the aforementioned factors, the loss for the period attributable to owners of the Company expanded from 0.41 million SGD to 3.97 million SGD - Loss for the period attributable to owners of the Company was approximately **3.97 million SGD** (prior year: loss of approximately **0.41 million SGD**)[68](index=68&type=chunk) [Interim Dividend](index=28&type=section&id=Interim%20Dividend) The Board of Directors resolved not to declare any interim dividend for the six months ended 30 June 2025 - The Board of Directors resolved **not to declare any interim dividend** for the six months ended 30 June 2025[69](index=69&type=chunk) [Liquidity and Financial Resources](index=29&type=section&id=Liquidity%20and%20Financial%20Resources) The Group's working capital and capital expenditure are primarily funded through shareholders' equity, operating cash, trade financing, bank loans, and shareholder loans; as of 30 June 2025, net current assets were approximately 33.0 million SGD, the current ratio was approximately 7.4 times, and the gearing ratio was approximately 52.5% - The Group's working capital and capital expenditure requirements have been primarily funded through a combination of **shareholders' equity, cash generated from operations, trade financing, bank loans, and shareholder loans**[71](index=71&type=chunk) - As of 30 June 2025, the Group's total equity attributable to owners of the Company was approximately **27.9 million SGD** (31 December 2024: approximately **30.2 million SGD**)[71](index=71&type=chunk) - As of 30 June 2025, the Group's net current assets were approximately **33.0 million SGD** (31 December 2024: approximately **35.6 million SGD**)[71](index=71&type=chunk) - As of 30 June 2025, the Group's current ratio was approximately **7.4 times** (31 December 2024: approximately **7.2 times**)[72](index=72&type=chunk) - As of 30 June 2025, the Group's gearing ratio was approximately **52.5%** (31 December 2024: approximately **51.6%**)[72](index=72&type=chunk) [Shareholder Loan](index=29&type=section&id=Shareholder%20Loan) Maodong (wholly owned by Mr. Li) provided the Company with an interest-free, unsecured, five-year shareholder loan totaling 100 million HKD (approximately 16.77 million SGD), primarily for general working capital and online business development - Maodong, wholly owned by Mr. Li, provided the Company with a shareholder loan totaling **100 million HKD (equivalent to approximately 16.77 million SGD)**[73](index=73&type=chunk) - The shareholder loan is **interest-free, unsecured, and for a term of five years**[73](index=73&type=chunk) - The Group primarily uses the shareholder loan for **general working capital and online business development**[73](index=73&type=chunk) [Capital Structure](index=29&type=section&id=Capital%20Structure) There have been no changes to the Group's capital structure since the listing of the company's shares on the Main Board of the Stock Exchange, with share capital consisting solely of ordinary shares - There have been **no changes** to the Group's capital structure since the listing of the Company's shares on the Main Board of the Stock Exchange[74](index=74&type=chunk) - The Company's share capital consists solely of **ordinary shares**[74](index=74&type=chunk) [Pledge of Assets](index=29&type=section&id=Pledge%20of%20Assets) As of 30 June 2025, the Group's other bank financing was secured by machinery with a carrying value of 0.4 million SGD - As of 30 June 2025, the Group's other bank financing was secured by the Group's machinery with a carrying value of **0.4 million SGD**[75](index=75&type=chunk) [Material Investments, Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=29&type=section&id=Material%20Investments,%20Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries,%20Associates%20and%20Joint%20Ventures) For the six months ended 30 June 2025, the Group held no material investments, material acquisitions, or disposals of subsidiaries, associates, and joint ventures - For the six months ended 30 June 2025, the Group held **no material investments, material acquisitions, or disposals of subsidiaries, associates, and joint ventures**[76](index=76&type=chunk) [Future Plans for Material Investments or Capital Assets](index=30&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) Other than those disclosed in the prospectus, the Group had no other future plans for material investments or additions to capital assets as of 30 June 2025 - Other than those disclosed in the prospectus, the Group had **no other future plans for material investments or additions to capital assets** as of 30 June 2025[78](index=78&type=chunk) [Contingent Liabilities](index=30&type=section&id=Contingent%20Liabilities) As of 30 June 2025, the Group had no material contingent liabilities, guarantees, or litigation that would significantly impact its financial position or operating results - As of 30 June 2025, the Group had **no material contingent liabilities, guarantees, or litigation** that would significantly impact its financial position or operating results[79](index=79&type=chunk) [Capital Commitments](index=30&type=section&id=Capital%20Commitments) As of 30 June 2025, the Group's capital commitments amounted to approximately 0.09 million SGD, related to the purchase of property, plant and equipment - As of 30 June 2025, the Group's capital commitments of approximately **0.09 million SGD** were related to the purchase of property, plant and equipment[80](index=80&type=chunk) [Events After the Reporting Period](index=30&type=section&id=Events%20After%20the%20Reporting%20Period) There were no significant events after the reporting period up to the date of this interim report - There were **no significant events** after the reporting period up to the date of this interim report[81](index=81&type=chunk) [Foreign Exchange Risk](index=30&type=section&id=Foreign%20Exchange%20Risk) The Group is exposed to foreign exchange risk from fluctuations in the SGD against the USD and HKD, but did not engage in derivative agreements or use financial instruments for hedging during the reporting period - The Group is exposed to foreign exchange risk due to **fluctuations in the exchange rates of SGD against USD and HKD**[82](index=82&type=chunk) - During the reporting period, the Group was **not involved in any derivative agreements** and did not use any financial instruments to hedge its foreign exchange risk[82](index=82&type=chunk) - Management monitors the Group's foreign exchange risk and will consider **hedging significant foreign exchange exposures** when necessary[82](index=82&type=chunk) [Employees and Remuneration Policy](index=30&type=section&id=Employees%20and%20Remuneration%20Policy) As of 30 June 2025, the Group employed 208 full-time and part-time employees, with total employee benefit expenses of approximately 3.9 million SGD; remuneration policy is based on qualifications, experience, and performance, with on-the-job training provided - As of 30 June 2025, the Group employed **208 full-time and part-time employees** (31 December 2024: 229 employees)[83](index=83&type=chunk) - Total employee benefit expenses (including directors' emoluments) for the reporting period were approximately **3.9 million SGD** (prior year: approximately **4.2 million SGD**)[83](index=83&type=chunk) - Employee salaries are determined based on each employee's **qualifications, experience, performance, and suitability**[83](index=83&type=chunk) - The Group also provides **on-the-job training** to employees to enhance technical capabilities and occupational health and safety[83](index=83&type=chunk) [Share Option Scheme](index=30&type=section&id=Share%20Option%20Scheme) The company adopted a share option scheme on 22 June 2018, expiring on 22 June 2028, to reward and retain employees; no share options have been granted, exercised, cancelled, or lapsed since its adoption - The Company adopted a share option scheme on **22 June 2018**, with an expiry date of **22 June 2028**[84](index=84&type=chunk) - The scheme aims to **reward or compensate employees** for their contributions to the Group, and/or enable the Group to **recruit and retain competent staff and attract talent**[84](index=84&type=chunk) - Since the adoption of the scheme, **no share options have been granted, exercised, cancelled, or lapsed**; there were also no outstanding share options as of 30 June 2025[84](index=84&type=chunk) [Other Information](index=30&type=section&id=Other%20Information) This section covers corporate governance, changes in directors' information, disclosure of directors' and substantial shareholders' interests in shares, purchase/sale/redemption of the company's listed securities, the Audit Committee's review, and directors' compliance with securities dealing - The company has complied with **all applicable code provisions of the Corporate Governance Code**[86](index=86&type=chunk) - **Mr. Li Thet**, through his wholly-owned company Maodong Limited, holds **60.23%** of the company's issued share capital[88](index=88&type=chunk)[91](index=91&type=chunk) [Corporate Governance](index=31&type=section&id=Corporate%20Governance) The company is committed to maintaining high standards of corporate governance and has adopted and complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules - The Company is committed to achieving and maintaining a **high level of corporate governance** to safeguard shareholders' interests and enhance corporate value and accountability[86](index=86&type=chunk) - For the six months ended 30 June 2025, the Company has **complied with all applicable code provisions of the Corporate Governance Code**[86](index=86&type=chunk) [Changes in Directors' Information](index=31&type=section&id=Changes%20in%20Directors'%20Information) This section discloses changes in directors' information, including Ms. Leung Tsz Ying's appointment as a member of the Nomination Committee and Mr. Wong Po Keung's appointment as an independent non-executive director and committee member of other listed companies - **Ms. Leung Tsz Ying** was appointed as a member of the Company's Nomination Committee, effective **25 March 2025**[89](index=89&type=chunk) - **Mr. Wong Po Keung** was appointed as an independent non-executive director and a member of relevant committees for **Weijun Bio-Tech Holdings Limited and Weijun Group Holdings Limited**[89](index=89&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company and its Associated Corporations](index=31&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20and%20its%20Associated%20Corporations) As of 30 June 2025, Mr. Li Thet held 60.23% of the company's issued share capital through controlled corporate interests; other than this, no other directors or chief executives had disclosable interests or short positions in shares Directors' Long Positions in Shares | Director Name | Nature of Interest | Number of Shares Held/Interested | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Li | Controlled corporation interest | 602,340,000 | 60.23% | - **Mr. Li** is deemed to be interested in the shares held by Maodong[88](index=88&type=chunk) [Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares of the Company](index=32&type=section&id=Substantial%20Shareholders'%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares%20of%20the%20Company) As of 30 June 2025, Maodong, as beneficial owner, held 60.23% of the company's issued share capital, making it a substantial shareholder of the company Substantial Shareholders' Long Positions in Shares | Shareholder Name | Nature of Interest | Number of Shares Held/Interested | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Maodong | Beneficial owner | 602,340,000 | 60.23% | - Maodong is **directly and wholly owned by Mr. Li**[91](index=91&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=33&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) For the six months ended 30 June 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities, and the company held no treasury shares - For the six months ended 30 June 2025, neither the Company nor any of its subsidiaries **purchased, sold, or redeemed any of the Company's listed securities**[93](index=93&type=chunk) - The Company holds **no treasury shares**[93](index=93&type=chunk) [Audit Committee](index=33&type=section&id=Audit%20Committee) The Audit Committee has reviewed the Group's unaudited condensed consolidated interim results for the six months ended 30 June 2025 and discussed accounting principles and practices with management, with no disagreements - The Company's Audit Committee has reviewed the Group's **unaudited condensed consolidated interim results** for the six months ended 30 June 2025[94](index=94&type=chunk) - The Audit Committee had **no disagreements** with management regarding the accounting principles and practices discussed[94](index=94&type=chunk) [Directors' Securities Transactions](index=33&type=section&id=Directors'%20Securities%20Transactions) The Group has adopted the Model Code as the code of conduct for directors' securities transactions, and all directors confirmed full compliance with the code during the reporting period - The Group has adopted the **Model Code** as the code of conduct for directors' securities transactions[95](index=95&type=chunk) - All Directors confirmed their **full compliance with the Model Code** for the six months ended 30 June 2025[95](index=95&type=chunk)

[Company Information](index=3&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) This section provides an overview of the company's governance structure, registered and operating locations, and key professional advisors [Board of Directors and Committees](index=3&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E5%8F%8A%E5%A7%94%E5%93%A1%E6%9C%83) The company's board of directors comprises executive, non-executive, and independent non-executive directors, with established audit, remuneration, and nomination committees to ensure sound corporate governance - The board members include executive directors Mr. Gao Yu (Chairman), Mr. Jiang Haiyang (CEO), Mr. Chen Xiaohui (Vice President), non-executive director Mr. Liang Guozhi, and independent non-executive directors Mr. Li Hanhui, Mr. Zhao Liang, and Ms. Wen Hongmei[6](index=6&type=chunk) - Audit, remuneration, and nomination committees have been established, each chaired by an independent non-executive director to strengthen corporate governance[6](index=6&type=chunk) [Registered and Operating Locations](index=3&type=section&id=%E8%A8%BB%E5%86%8A%E5%8F%8A%E7%87%9F%E9%81%8B%E5%9C%B0%E9%BB%9E) The company is registered in the Cayman Islands, with its headquarters and main operating location in Nanshan District, Shenzhen, and its principal place of business in Hong Kong at Times Square, Causeway Bay - The registered office is located at Cricket Square, Cayman Islands, with headquarters and principal operating location in China at Gemdale Viseen Center, Nanshan District, Shenzhen[6](index=6&type=chunk) - The principal place of business in Hong Kong is located at 31/F, Tower Two, Times Square, 1 Matheson Street, Causeway Bay[6](index=6&type=chunk) [Professional Advisors and Partners](index=4&type=section&id=%E5%B0%88%E6%A5%AD%E9%A1%A7%E5%95%8F%E5%8F%8A%E5%90%88%E4%BD%9C%E5%A4%A5%E4%BC%B4) The company engages Ernst & Young as its independent auditor, Davis Polk & Wardwell as its Hong Kong legal counsel, and collaborates with major banks including China Merchants Bank and Bank of China (Hong Kong) - The independent auditor is Ernst & Young, and the Hong Kong legal counsel is Davis Polk & Wardwell[8](index=8&type=chunk) - Key banking partners include China Merchants Bank Co., Ltd. Shenzhen Hi-Tech Park Innovation Sub-branch and Bank of China (Hong Kong) Limited[8](index=8&type=chunk) - The company's stock code is **909**, and its official website is www.mingyuanyun.com[8](index=8&type=chunk) [Financial Highlights](index=6&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) This section summarizes the company's key financial performance and position, highlighting revenue trends, profitability, and liquidity [Summary of Interim Condensed Consolidated Statement of Comprehensive Income](index=5&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8%E6%91%98%E8%A6%81) For the six months ended June 30, 2025, the company's revenue decreased by **15.9%** year-on-year to **RMB 605.8 million**, while operating loss significantly narrowed by **68.8%**, achieving an adjusted net profit of **RMB 33.1 million** from a loss Key Financial Data for the Six Months Ended June 30 (RMB Thousand) | Metric | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 605,807 | 720,106 | (15.9) | | Gross Profit | 486,023 | 577,696 | (15.9) | | Operating Loss | (65,580) | (210,434) | (68.8) | | Profit/(Loss) Before Income Tax | 9,622 | (116,287) | (108.3) | | Profit/(Loss) for the Period | 13,748 | (115,369) | (111.9) | | Adjusted Net Profit/(Loss) | 33,119 | (16,962) | (295.3) | - Net cash outflow from operating activities was approximately **RMB 42.8 million**, a **74.0% year-on-year reduction** in net outflow, indicating significant improvement in cash flow[14](index=14&type=chunk) [Summary of Interim Condensed Consolidated Statement of Financial Position](index=6&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8%E6%91%98%E8%A6%81) As of June 30, 2025, the company's total assets slightly decreased, while current liabilities increased, leading to a decrease in the current ratio from **6.01** at the end of 2024 to **5.54** Key Financial Position Data as of June 30 (RMB Thousand) | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Assets | 5,311,561 | 5,448,492 | | Total Liabilities | 810,778 | 745,606 | | Total Equity | 4,500,783 | 4,702,886 | | Current Assets | 4,253,254 | 4,113,632 | | Current Liabilities | 767,271 | 684,643 | - The current ratio decreased from **6.01** as of December 31, 2024, to **5.54** as of June 30, 2025, but remains at a high level[71](index=71&type=chunk) [Business Review and Outlook](index=7&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7%E5%8F%8A%E5%B1%95%E6%9C%9B) This section provides an overview of the company's operational performance in the first half of the year and outlines strategic directions for future growth [I. Industry Status and Trends](index=7&type=section&id=%E4%B8%80%E3%80%81%E8%A1%8C%E6%A5%AD%E7%8F%BE%E7%8B%80%E8%88%87%E8%B6%A8%E5%8B%A2) The Chinese real estate market is gradually stabilizing under policy impetus, with increasing demand for revitalizing existing properties and digitalization, while global PropTech flourishes, and AI integration becomes a new growth driver for the company [1. Policy-Driven Market Stabilization, 'Good Housing' Construction Forces Technology Upgrades](index=7&type=section&id=1.%20%E6%94%BF%E7%AD%96%E6%8E%A8%E5%8B%95%E5%B8%82%E5%A0%B4%E5%9B%9E%E7%A9%A9%EF%BC%8C%E3%80%8C%E5%A5%BD%E6%88%BF%E5%AD%90%E3%80%8D%E5%BB%BA%E8%A8%AD%E5%80%92%E9%80%BC%E6%8A%80%E8%A1%93%E5%8D%87%E7%B4%9A) China's real estate market sales decline narrowed under policy support, with the central government emphasizing 'stabilizing the market' and 'good housing' construction, creating new opportunities for digital technology applications - From January to June **2025**, China's new commercial housing sales area decreased by **3.5%** year-on-year, and sales value decreased by **5.5%** year-on-year, with the decline narrowing and market transaction volume improving[15](index=15&type=chunk) - The Central Political Bureau meeting emphasized "continuously consolidating the stable trend of the real estate market", and the State Council meeting proposed "greater efforts to promote the real estate market to stop falling and stabilize", while for the first time incorporating "good housing" construction into national strategy, encouraging the creation of safe, comfortable, green, and smart residences[15](index=15&type=chunk)[16](index=16&type=chunk) [2. Gradual Entry into Real Estate Stock Era, Asset Revitalization Promotes Digitalization Demand](index=8&type=section&id=2.%20%E4%B8%8D%E5%8B%95%E7%94%A2%E5%AD%98%E9%87%8F%E6%99%82%E4%BB%A3%E6%BC%B8%E9%80%B2%EF%BC%8C%E8%B3%87%E7%94%

[Corporate Information](index=2&type=section&id=Corporate%20Information) This section provides an overview of the company's board composition, key personnel changes, and fundamental corporate details [Board of Directors and Committee Composition](index=2&type=section&id=1.1%20Board%20of%20Directors%20and%20Committee%20Composition) This section discloses the company's board members (executive, non-executive, independent non-executive directors) and their roles in audit, remuneration, nomination, and strategy committees, along with updates on director appointments and resignations - Board member changes: Liu Jiali was appointed as a Non-executive Director and a member of the Strategy Committee on August 28, 2025; Shi Xuguang resigned as a Non-executive Director and a member of the Strategy Committee on August 11, 2025[4](index=4&type=chunk) - Director appointment extensions: Mr. Fu Weiqiang's employment term was extended to June 30, 2028; Ms. Lin Junxian's employment term was extended to June 30, 2027[86](index=86&type=chunk) [Company Basic Information](index=2&type=section&id=1.2%20Company%20Basic%20Information) This section provides fundamental company details including registered office, principal place of business, share registrar, principal bankers, lawyers, auditors, company secretary, stock code, and website - Stock code: **00132**[5](index=5&type=chunk) - Company website: http://hingyiphk.quamhkir.com[5](index=5&type=chunk) - Principal bankers include Bank of China, Bank of Communications, China Construction Bank, China Development Bank, Zheshang Bank Co., Ltd. (Hong Kong Branch), Hang Seng Bank, and Rural Commercial Bank[5](index=5&type=chunk) [Business Review](index=4&type=section&id=Business%20Review) This section provides an overview of the group's operational performance across its key business segments, including financial highlights and strategic initiatives [Macroeconomic Environment and Group Strategy](index=4&type=section&id=2.1%20Macroeconomic%20Environment%20and%20Group%20Strategy) The report period saw a complex global macroeconomic environment and domestic economic challenges, yet the Group maintained strategic focus on the healthcare and elderly care industry, optimizing its "1+X" structure to become a leading Bay Area tech-enabled eldercare service provider - Macroeconomic challenges: Global economic volatility, evolving trade patterns, and ongoing geopolitical conflicts continue to constrain global economic recovery; the domestic economy faces multiple challenges including weak demand and deep adjustments in some industries[7](index=7&type=chunk)[9](index=9&type=chunk) - Group mission and strategy: Committed to "Healthy Life, Great Achievements" as its mission, driving transformation with new quality productive forces, and steadfastly moving towards the strategic goal of becoming a leading tech-enabled eldercare service provider in the Greater Bay Area[7](index=7&type=chunk)[9](index=9&type=chunk) - Core strategy: The core strategy of comprehensively focusing on the healthcare and elderly care industry and continuously optimizing the "1+X" industrial structure has begun to show results, laying a solid foundation for navigating economic cycles and achieving sustainable high-quality development[7](index=7&type=chunk)[9](index=9&type=chunk) [Overall Financial Performance](index=4&type=section&id=2.2%20Overall%20Financial%20Performance) For the six months ended June 30, 2025, the Group's total revenue increased by 1.69% to approximately HKD 418 million, operating profit grew by 8.68% to approximately HKD 121 million, while net profit decreased by 58.12% to approximately HKD 44.87 million, mainly due to a high base effect from a one-off disposal gain in the prior year and reduced profit contribution from associates Group Overall Financial Performance (For the six months ended June 30, 2025) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Total Revenue | 417,990 | 411,025 | +1.69% | | Operating Profit | 121,064 | 111,399 | +8.68% | | Net Profit | 44,866 | 107,133 | -58.12% | - Revenue growth was primarily driven by the expansion of the core healthcare and elderly care business (contributing an increase of approximately **HKD 12,504,000**) and the steady development of the finance leasing business (contributing an increase of approximately **HKD 3,713,000**)[8](index=8&type=chunk)[10](index=10&type=chunk) - The year-on-year decline in net profit was mainly due to the high base effect from a one-off gain on the disposal of subsidiary Guangdong Zhongyan Taike Construction Co., Ltd. in the prior year, and a reduction in profit contribution from associate Nanhai Changhai Power Generation Co., Ltd. of approximately **HKD 21,019,000**[11](index=11&type=chunk)[13](index=13&type=chunk) [Healthcare and Elderly Care Business](index=5&type=section&id=2.3%20Healthcare%20and%20Elderly%20Care%20Business) As the Group's strategic core, the healthcare and elderly care business solidified its leading position in Foshan institutional eldercare and was included in the "Guangdong Residential Care Services Scheme" by the Hong Kong Social Welfare Department in February 2025; as of June 30, 2025, the Group had 4,390 medical and elderly care beds, with elderly care beds increasing by 26.85% year-on-year, operating revenue grew by 12.90%, but operating profit temporarily decreased by 55.89% due to strategic investments - Strategic core: As the "1" core business in the Group's "1+X" strategy, maintaining strategic focus and advancing the construction of a three-tier elderly care service system (institutional, community, and home-based) in Nanhai District[12](index=12&type=chunk)[14](index=14&type=chunk)[15](index=15&type=chunk)[16](index=16&type=chunk) - Market expansion: Included in the "Guangdong Residential Care Services Scheme" by the Hong Kong Social Welfare Department on February 20, 2025, offering more options for Hong Kong elderly waiting for long-term care to receive eldercare services in mainland China[12](index=12&type=chunk)[14](index=14&type=chunk) Healthcare and Elderly Care Business Bed Capacity (As of June 30, 2025) | Metric | Quantity/Ratio | Change from H1 2024 | | :--- | :--- | :--- | | Total Medical and Elderly Care Beds | 4,390 Beds | - | | Medical Nursing Beds | 455 Beds | - | | Medical Nursing Bed Utilization Rate | 85.93% | - | | Elderly Care Beds | 3,435 Beds | Increased by 727 beds (+26.85%) | | Elderly Care Bed Occupancy Rate | 69.98% | (Temporarily decreased due to the new operation of 700 beds) | | Elderly Care Beds Under Construction | 500 Beds | - | Healthcare and Elderly Care Business Financial Performance (For the six months ended June 30, 2025) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 109,401 | 96,897 | +12.90% | | Operating Profit | 3,386 | 7,677 | -55.89% | - Reasons for profit decline: Increased strategic upfront investment in elderly care infrastructure and business expansion, and a year-on-year increase in non-cash depreciation expenses of approximately **HKD 4,526,000** to approximately **HKD 9,981,000**[15](index=15&type=chunk)[16](index=16&type=chunk) [Finance Leasing Business](index=7&type=section&id=2.4%20Finance%20Leasing%20Business) Despite macroeconomic downturns and intensified industry competition, the finance leasing business achieved counter-cyclical growth, maintaining net profit growth and a 6.98% year-on-year increase in operating profit to approximately HKD 93.73 million, attributed to its specialized team, standardized products, efficient services, and differentiated strategy focusing on the municipal environmental protection niche market - Strategic positioning: Firmly focused on the strategic goal of becoming a leading specialized environmental finance leasing company in China, continuously deepening its presence in niche segments of the municipal environmental protection industry[17](index=17&type=chunk)[19](index=19&type=chunk) Finance Leasing Business Financial Performance (For the six months ended June 30, 2025) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Operating Profit | 93,726 | 87,609 | +6.98% | - Business highlight: Successfully issued the "First Green SME Support Corporate Bond in China" in mid-August 2025, enhancing independent financing capabilities[17](index=17&type=chunk)[19](index=19&type=chunk) - Competitive advantages: Possesses a professional team, standardized products, and efficient services, while implementing stringent risk management measures[17](index=17&type=chunk)[19](index=19&type=chunk) [Technology Business](index=7&type=section&id=2.5%20Technology%20Business) The technology business experienced a significant 47.92% year-on-year decline in operating revenue to approximately HKD 1.61 million due to an unfavorable traditional manufacturing economic climate, poor service market conditions, and intensified competition in mainland China; however, by strictly controlling costs, operating loss decreased by 38.02% to approximately HKD 3.28 million, and the company is actively planning for medical and elderly care technology industrialization and digital education to open new growth points Technology Business Financial Performance (For the six months ended June 30, 2025) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,605 | 3,082 | -47.92% | | Operating Loss | (3,283) | (5,297) | Loss reduced by 38.02% | - Challenges: Unfavorable economic conditions in mainland China's traditional manufacturing sector, poor service market environment for manufacturing, intensified market competition, and reduced willingness of manufacturers to undergo industrial internet transformation[18](index=18&type=chunk)[20](index=20&type=chunk) - Strategic layout: Clarifying development ideas, defining strategic direction, gradually cultivating and expanding the medical and elderly care technology industry, guided by "technology empowering medical and elderly care," and promoting deep integration of information technology with medical and elderly care services[21](index=21&type=chunk)[23](index=23&type=chunk) - Business progress: In industrial internet identification, cumulative registered enterprises reached **2,682**, identification registrations exceeded **9.3 billion**, and identification resolution times exceeded **1.8 billion**. Foshan Panshi Education Technology Co., Ltd. was established in March 2025 and has signed education big data projects[21](index=21&type=chunk)[23](index=23&type=chunk) [Civil Explosives Business](index=8&type=section&id=2.6%20Civil%20Explosives%20Business) Affected by a weak macroeconomic environment and slowing growth in downstream mining and infrastructure investment, demand in the civil explosives market generally declined, leading to a 7.01% year-on-year decrease in operating revenue to approximately HKD 104 million; however, through continuous technological upgrades, energy saving, and 7S lean management, operational efficiency significantly improved, and operating profit grew against the trend by 20.82% to approximately HKD 26.57 million Civil Explosives Business Financial Performance (For the six months ended June 30, 2025) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 103,886 | 111,720 | -7.01% | | Operating Profit | 26,570 | 21,992 | +20.82% | - Market challenges: Weak macroeconomic environment, slowing growth in downstream mining and infrastructure investment, and a continued downturn in the real estate sector led to an overall decline in demand for civil explosives, resulting in oversupply[22](index=22&type=chunk)[24](index=24&type=chunk) - Operational highlights: Actively promoted Huaxin Blasting to obtain a Class A blasting operation qualification in July 2025, effectively releasing mixed explosives production capacity; optimized product structure to increase the proportion of mixed explosives production and sales; deeply advanced 7S lean management to achieve energy saving, consumption reduction, and strict cost control[24](index=24&type=chunk)[25](index=25&type=chunk)[28](index=28&type=chunk) [Hotel and Property Investment](index=9&type=section&id=2.7%20Hotel%20and%20Property%20Investment) Affected by market conditions, hotel rental income decreased by 31.30% year-on-year, and operating profit declined by 39.77% to approximately HKD 1.55 million; despite the sluggish real estate industry, Zhongkong Building significantly increased its total rental income by 58.57% year-on-year to approximately HKD 5.46 million by enhancing asset operational capabilities - Hotel business: In the second half of 2024, affected by market conditions, hotel rents were adjusted downwards, leading to a year-on-year decrease in rental income of approximately **31.30%**, a corresponding reduction in rental income of approximately **HKD 2,069,000**, and a year-on-year decrease in operating profit of **39.77%** to approximately **HKD 1,549,000**[26](index=26&type=chunk)[29](index=29&type=chunk) - Zhongkong Building property: Despite the sluggish real estate industry, Zhongkong Building achieved higher occupancy rates and rental levels than comparable properties in the vicinity by enhancing asset operational capabilities, with total rental income significantly increasing by **58.57%** year-on-year to approximately **HKD 5,461,000**[27](index=27&type=chunk)[29](index=29&type=chunk) - Hong Kong properties: Rental income for the current period remained at **HKD 300,000**, consistent with the prior year's corresponding period[27](index=27&type=chunk)[29](index=29&type=chunk) [Share of Profits from Associates](index=10&type=section&id=2.8%20Share%20of%20Profits%20from%20Associates) The profit contribution from associate Nanhai Changhai Power Generation Co., Ltd. significantly decreased by 79.26% year-on-year to approximately HKD 5.50 million due to the shutdown of two production units, which substantially weakened its power generation capacity Profit Contribution from Associates (For the six months ended June 30, 2025) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Profit Contribution from Associates | 5,501 | 26,520 | -79.26% | - Reasons for profit decline: Two production units of associate Nanhai Changhai Power Generation Co., Ltd. were shut down, leading to a significant weakening of power generation capacity compared to the prior year and a substantial decline in overall operating performance[30](index=30&type=chunk)[33](index=33&type=chunk) [Financial Position and Analysis](index=10&type=section&id=Financial%20Position%20and%20Analysis) This section analyzes the Group's asset and liability structure, liquidity, and cash flow, highlighting key changes and management strategies [Asset and Liability Structure](index=10&type=section&id=3.1%20Asset%20and%20Liability%20Structure) As of June 30, 2025, the Group's total assets increased to approximately HKD 7.82 billion, total liabilities rose to approximately HKD 5.92 billion, and the asset-liability ratio slightly increased to 75.73%, with both net assets and net assets per share showing growth Key Balance Sheet Metrics (As of June 30, 2025) | Metric | 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 7,822,417 | 7,484,410 | +4.51% | | Total Liabilities | 5,923,555 | 5,647,165 | +4.89% | | Asset-Liability Ratio | 75.73% | 75.45% | +0.28 percentage points | | Net Assets | 1,898,862 | 1,837,245 | +3.35% | | Net Assets Per Share | HKD 0.66 | HKD 0.63 | +4.76% | [Liquidity and Cash Flow](index=10&type=section&id=3.2%20Liquidity%20and%20Cash%20Flow) The Group's net current assets and current ratio both decreased, but sufficient liquidity was ensured by securing adequate bank credit facilities and extending the maturity date of convertible bonds; bank deposits and cash decreased but remain sufficient to support future operations and investments Liquidity Metrics (As of June 30, 2025) | Metric | 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | Change | | :--- | :--- | :--- | :--- | | Net Current Assets | 139,719 | 741,909 | -81.18% | | Current Ratio | 1.06 times | 1.42 times | -0.36 times | | Bank Deposits and Cash | 570,919 | 717,173 | -20.39% | - Financing measures: Sufficient bank credit facilities have been secured, and more financing channels are being actively explored[32](index=32&type=chunk)[35](index=35&type=chunk) - Convertible bond extension: An extension deed has been entered into to extend the maturity date of the outstanding convertible bonds with a principal amount of approximately **HKD 166,232,000** by three years, from October 13, 2024, to October 13, 2027[32](index=32&type=chunk)[35](index=35&type=chunk) [Pledge of Assets](index=11&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, approximately HKD 4.70 billion of the Group's assets were pledged, primarily including owner-occupied and investment properties, equity in associates, and finance lease receivables, serving as collateral for bank borrowings Pledged Assets (As of June 30, 2025) | Item | 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | | :--- | :--- | :--- | | Investment Properties | 337,208 | 330,916 | | Property, Plant and Equipment | 65,616 | 42,266 | | Pledged Finance Lease Receivables | 4,215,762 | 3,788,252 | | Pledged Equity Interests in Associates | 123,726 | 98,487 | | **Total** | **4,702,664** | **4,259,921** | - Purpose of pledge: As collateral for the Group's bank borrowings[36](index=36&type=chunk)[39](index=39&type=chunk) [Foreign Exchange Exposure](index=11&type=section&id=Foreign%20Exchange%20Exposure) The Group holds certain RMB-denominated monetary assets and liabilities, exposing it to RMB exchange rate fluctuation risks; the company has established a foreign exchange risk monitoring mechanism, and the Board will continue to closely monitor foreign exchange market dynamics and take effective measures to mitigate risks as appropriate - Risk sources: The Group holds certain RMB-denominated monetary assets and liabilities, which may give rise to exchange losses or gains due to RMB appreciation or depreciation. In 2025, exchange rates fluctuated in both directions due to political and economic factors such as intensified global monetary policy divergence, China-US tariff disputes, and normalized geopolitical conflicts[37](index=37&type=chunk)[40](index=40&type=chunk) - Risk management measures: The Group has established an internal foreign exchange risk monitoring mechanism, and the Board will continue to closely monitor foreign exchange market dynamics and take effective measures to mitigate foreign exchange risks as appropriate[37](index=37&type=chunk)[40](index=40&type=chunk) [Outlook](index=11&type=section&id=Outlook) This section outlines the Group's strategic vision and plans for its core businesses in response to macroeconomic trends and market opportunities [Macroeconomic Outlook and Group Strategic Direction](index=11&type=section&id=6.1%20Macroeconomic%20Outlook%20and%20Group%20Strategic%20Direction) Looking ahead, global economic instability will persist, and domestic economic transformation and upgrading face challenges; however, China's aging population is a definite macroeconomic trend with huge market potential in the silver economy, and the Group will firmly adhere to its established strategic direction, deepen the optimization of its "1+X" industrial structure, and strive to become a leading tech-enabled eldercare service provider in the Guangdong-Hong Kong-Macao Greater Bay Area to seize historical development opportunities - Macroeconomic outlook: The "unstable state" of the global economy will persist, with slow economic growth. Domestically, consumer and investment confidence still needs time to recover, challenges such as insufficient aggregate demand and real estate sector adjustments remain, economic transformation and upgrading are in a critical period, and the overall business environment is full of uncertainties and challenges[38](index=38&type=chunk)[41](index=41&type=chunk) - Opportunities: China's rapid population aging is a definite macroeconomic trend, policy support continues to increase, and the silver economy market has immense potential[38](index=38&type=chunk)[41](index=41&type=chunk) - Group strategy: The Group will unswervingly adhere to its established strategic direction, uphold the mission of "Healthy Life, Great Achievements," strive to become a leading tech-enabled eldercare service provider in the Guangdong-Hong Kong-Macao Greater Bay Area, and focus on deepening the optimization of its "1+X" industrial structure, maintaining a pattern of "prominent main business, diversified synergy"[42](index=42&type=chunk)[43](index=43&type=chunk) [Healthcare and Elderly Care Business Outlook](index=13&type=section&id=6.2%20Healthcare%20and%20Elderly%20Care%20Business%20Outlook) As the Group's core segment and key future growth engine, the healthcare and elderly care business will concentrate resources to shift its development path from scale expansion to quality improvement and efficiency optimization, aiming for high-quality, sustainable growth; the Group will deeply implement a "medical and elderly care services" and "scientific and technological innovation for health" dual-driven model, comprehensively promote standardization and branding, and seize the historical opportunity of "Hong Kong residents moving north for elderly care" to deeply cultivate the Greater Bay Area market - Development path transformation: Concentrating resources to fully promote the transformation of its development path from scale expansion to quality improvement and efficiency optimization, achieving high-quality, sustainable growth[44](index=44&type=chunk)[46](index=46&type=chunk) - Dual-driven model: Deeply practicing the "medical and elderly care services" and "scientific and technological innovation for health" dual-driven development model, empowering health services with cutting-edge technology and supporting an innovative ecosystem with professional medical and elderly care[44](index=44&type=chunk)[46](index=46&type=chunk) - Service system construction: Comprehensively promoting standardization and branding, establishing a replicable and scalable high-quality service model. Reconstructing a tiered and precise elderly care service system, with a focus on establishing specialized service areas for incapacitated elderly care and cognitive impairment care[45](index=45&type=chunk)[46](index=46&type=chunk) - Market opportunities: Seizing the historical opportunity of "Hong Kong residents moving north for elderly care," deeply cultivating the Guangdong-Hong Kong-Macao Greater Bay Area market, and striving to build a competitive "Hong Kong-style tech-enabled eldercare" service brand[45](index=45&type=chunk)[46](index=46&type=chunk) [Technology Business Outlook](index=14&type=section&id=6.3%20Technology%20Business%20Outlook) The technology business is the Group's key future strategic layout and empowerment center, focusing on cultivation in the short term and value creation in the long term; the Group will concentrate on the core track of "medical and elderly care technology industrialization," strive to cultivate and expand new tech-enabled eldercare business models characterized by data-driven and intelligent collaboration, build a digital elderly care ecosystem, and achieve synergistic value with its main business through investment, mergers and acquisitions, and strengthened post-investment management - Strategic positioning: The technology business is the Group's key future strategic layout and empowerment center, focusing on cultivation in the short term and value creation in the long term[47](index=47&type=chunk)[49](index=49&type=chunk) - Core track and new business models: Focusing on the core track of "medical and elderly care technology industrialization," striving to cultivate and expand new tech-enabled eldercare business models characterized by data-driven and intelligent collaboration[47](index=47&type=chunk)[49](index=49&type=chunk) - Ecosystem construction: Reshaping medical and elderly care service experience and industry efficiency through new-generation information technology, building a digital elderly care ecosystem covering health management, emergency response, intelligent care, and smart learning[47](index=47&type=chunk)[49](index=49&type=chunk) - Synergy and growth: Strategically investing in and acquiring companies in the scientific and technological innovation for health sector to ensure synergy with the main business. Actively incubating emerging businesses, deeply exploring the digital education industry to open new profit growth points, while strengthening post-investment management of existing projects to uncover synergistic value with the main business[48](index=48&type=chunk)[50](index=50&type=chunk) [Finance Leasing Business Outlook](index=15&type=section&id=6.4%20Finance%20Leasing%20Business%20Outlook) As a stable profit contributor for the Group, the finance leasing business will adhere to differentiated competition, upholding the "market-oriented, specialized, and differentiated" philosophy, focusing on advantageous niche areas such as water supply, sewage, cogeneration, and urban heating, enhancing operational efficiency, broadening financing channels, and improving the risk control system, striving to become a leading specialized environmental finance leasing company in China - Strategic positioning: As a stable profit contributor for the Group, the company adheres to differentiated competition, upholding the "market-oriented, specialized, and differentiated" philosophy[51](index=51&type=chunk)[53](index=53&type=chunk) - Focused areas: Concentrating on advantageous niche areas such as water supply, sewage, cogeneration, and urban heating, deepening and thoroughly developing these segments[51](index=51&type=chunk)[53](index=53&type=chunk) - Operations and financing: Enhancing operational efficiency, optimizing approval processes, improving fund deployment efficiency, broadening financing channels, and reducing funding costs[51](index=51&type=chunk)[53](index=53&type=chunk) - Risk management: Improving the risk control system to ensure asset quality, striving to become a leading specialized environmental finance leasing company in China[51](index=51&type=chunk)[53](index=53&type=chunk) [Civil Explosives Business Outlook](index=15&type=section&id=6.5%20Civil%20Explosives%20Business%20Outlook) The civil explosives business will adapt to policies, actively transform, and deeply optimize its product structure to meet national policy requirements and respond to market demand changes; the Group will promote strategic cooperation with industry leaders to ensure packaging capacity and sales, actively expand blasting operations to release mixed explosives production capacity, and continuously deepen cost reduction and efficiency improvement, 7S lean management, and intelligent transformation of production lines to maximize benefits - Policy and market adaptation: Adapting to policies, actively transforming, and deeply optimizing product structure to meet national policy requirements and respond to market demand changes[52](index=52&type=chunk)[54](index=54&type=chunk) - Strategic cooperation and capacity: Promoting strategic cooperation with industry leaders, leveraging their strengths for development, ensuring packaging capacity and sales. Actively expanding blasting operations to release mixed explosives production capacity[52](index=52&type=chunk)[54](index=54&type=chunk) - Efficiency improvement: Continuously deepening cost reduction and efficiency improvement, 7S lean management, and intelligent transformation of production lines to maximize benefits[52](index=52&type=chunk)[54](index=54&type=chunk) [Summary and Future Commitments](index=16&type=section&id=6.6%20Summary%20and%20Future%20Commitments) During the reporting period, the Group's strategic transformation yielded significant results, with rapid growth in its core businesses and stable operations in supporting businesses; despite net profit being affected by non-recurring factors, the growth in the Group's core operating profit reflects a continuous increase in intrinsic value, and the Group is confident in the future, with management committed to continuously strengthening strategic execution, refined operations, and prudent risk management to drive high-quality sustainable growth and create long-term value for shareholders, investors, and society - Strategic transformation achievements: Rapid growth in core businesses and stable operations in supporting businesses, with the growth in the Group's core operating profit indicating a continuous increase in intrinsic value[55](index=55&type=chunk)[56](index=56&type=chunk) - Future confidence: With the accelerating arrival of China's aging society and continuous favorable policies for the silver economy, we are confident in the future[55](index=55&type=chunk)[56](index=56&type=chunk) - Management commitment: Management will continuously strengthen strategic execution, refined operational capabilities, and prudent risk management to drive high-quality sustainable growth for the Group, steadfastly creating long-term value for shareholders, investors, and society[55](index=55&type=chunk)[56](index=56&type=chunk) [Directors' and Substantial Shareholders' Information](index=17&type=section&id=Directors'%20and%20Substantial%20Shareholders'%20Information) This section details the shareholdings of the company's directors and substantial shareholders, providing transparency on ownership structure [Directors' Shareholdings](index=17&type=section&id=7.1%20Directors'%20Shareholdings) As of June 30, 2025, only Chairman He Xiangming held 1,441,000 ordinary shares, representing 0.08% of the total issued share capital, among the company's directors and chief executive officers' interests in shares, underlying shares, and debentures He Xiangming's Shareholding (As of June 30, 2025) | Director Name | Capacity | Nature of Interest | Number of Ordinary Shares Held | Percentage of Total Issued Share Capital | | :--- | :--- | :--- | :--- | :--- | | He Xiangming | Beneficial Owner | Personal | 1,441,000 | 0.08% | - Save as disclosed above, as at June 30, 2025, none of the Directors or chief executive of the Company had any interests or short positions in the shares, underlying shares or debentures of the Company or any of its associated corporations as recorded in the register required to be kept under the Securities and Futures Ordinance[61](index=61&type=chunk)[62](index=62&type=chunk) [Substantial Shareholders' Holdings](index=18&type=section&id=7.2%20Substantial%20Shareholders'%20Holdings) As of June 30, 2025, according to the company's register of substantial shareholders, Glories Holdings (HK) Limited, Prize Rich Inc., and Guangdong Nanhai Holding Group Co., Ltd. each held 84.18% of the company's shares/underlying shares Substantial Shareholders' Holdings (As of June 30, 2025) | Name | Total Shares/Underlying Shares | Capacity | Percentage of Total Issued Share Capital | | :--- | :--- | :--- | :--- | | Glories Holdings (HK) Limited | 1,441,439,842 | Beneficial Owner | 84.18% | | Prize Rich Inc. | 1,441,439,842 | Corporate Interest | 84.18% | | Guangdong Nanhai Holding Group Co., Ltd.* | 1,441,439,842 | Corporate Interest | 84.18% | - Shareholding structure explanation: These shares/underlying shares are held by Prize Rich Inc., which is wholly owned by Guangdong Nanhai Holding Group Co., Ltd. Prize Rich Inc. agreed on July 25, 2022, to transfer part of its shares and convertible bonds to its wholly-owned subsidiary Glories Holdings (HK) Limited[64](index=64&type=chunk)[66](index=66&type=chunk) [Other Corporate Information](index=19&type=section&id=Other%20Corporate%20Information) This section covers various corporate governance matters, employee information, dividend policy, and compliance with listing rules [Share Option Scheme](index=19&type=section&id=8.1%20Share%20Option%20Scheme) For the six months ended June 30, 2025, the company did not implement any share option scheme, nor were there any outstanding share options; save for the convertible bonds disclosed in Note 19 to the financial statements, no other equity-linked agreements were entered into or existed during the period - Share option status: For the six months ended June 30, 2025, the Company did not implement any share option scheme, and there were no outstanding share options of the Company[68](index=68&type=chunk)[72](index=72&type=chunk) - Equity-linked agreements: Save for the convertible bonds disclosed in Note 19 to the financial statements, the Company did not enter into or have any equity-linked agreements during the six months ended June 30, 2025[68](index=68&type=chunk)[72](index=72&type=chunk) [Arrangements for Acquiring Shares or Debentures](index=19&type=section&id=8.2%20Arrangements%20for%20Acquiring%20Shares%20or%20Debentures) During the reporting period, neither the company nor any of its subsidiaries entered into any arrangements that would enable the company's directors to benefit from acquiring shares or debentures of the company or any other body corporate - No arrangements for directors' benefits: Neither the Company nor any of its subsidiaries entered into any arrangements during the period that would enable the Company's directors to benefit from acquiring shares or debentures of the Company or any other body corporate[69](index=69&type=chunk)[73](index=73&type=chunk) [Employee Information](index=19&type=section&id=8.3%20Employee%20Information) As of June 30, 2025, the Group's total number of employees was approximately 1,280, an increase from the end of 2024; employee remuneration is determined based on their duties and performance, and education allowances are provided to all employees - Total number of employees: The Group had approximately **1,280** employees (December 31, 2024: 1,232 employees)[70](index=70&type=chunk)[74](index=74&type=chunk) - Remuneration policy: The remuneration of the Group's employees is determined based on their duties and performance[70](index=70&type=chunk)[74](index=74&type=chunk) - Employee benefits: The Group provides education allowances to all employees[70](index=70&type=chunk)[74](index=74&type=chunk) [Interim Dividend](index=19&type=section&id=8.4%20Interim%20Dividend) The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025 - Interim dividend: The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025 (for the six months ended June 30, 2024: nil)[71](index=71&type=chunk)[75](index=75&type=chunk) [Listing Shares Transactions](index=20&type=section&id=8.5%20Listing%20Shares%20Transactions) For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed shares - Listed shares transactions: During the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed shares[76](index=76&type=chunk)[80](index=80&type=chunk) [Corporate Governance](index=20&type=section&id=8.6%20Corporate%20Governance) The company places high importance on corporate governance, having adopted all code provisions of the Corporate Governance Code set out in Appendix C1 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited as its own Corporate Governance Code, and has complied with all code provisions effective during the six months ended June 30, 2025 - Corporate governance compliance: The Company has adopted all code provisions of the Corporate Governance Code set out in Appendix C1 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited as its own Corporate Governance Code, and has complied with all code provisions effective during the six months ended June 30, 2025[77](index=77&type=chunk)[81](index=81&type=chunk) [Model Code for Securities Transactions by Directors](index=20&type=section&id=8.7%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules, and all directors have confirmed compliance with the code during the six months ended June 30, 2025 - Directors' securities transaction code: The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules as the standard for directors' conduct when dealing in securities. Following specific enquiries, all Directors have confirmed that they have complied with the requirements set out in the Model Code during the six months ended June 30, 2025[78](index=78&type=chunk)[82](index=82&type=chunk) [Audit Committee](index=20&type=section&id=8.8%20Audit%20Committee) The Audit Committee, composed of three independent non-executive directors, has reviewed the Group's accounting principles and practices with management, and discussed audit, risk management, internal control, and financial reporting matters, including a general review of the unaudited condensed consolidated financial statements for the six months ended June 30, 2025 - Committee composition: The Audit Committee is composed of three independent non-executive directors of the Company[79](index=79&type=chunk)[83](index=83&type=chunk) - Responsibilities: Has reviewed the accounting principles and practices adopted by the Group with management, and discussed matters relating to audit, risk management, internal control, and financial reporting, including a general review of the unaudited condensed consolidated financial statements for the six months ended June 30, 2025[79](index=79&type=chunk)[83](index=83&type=chunk) [Changes in Directors' Information and Connected Transactions](index=21&type=section&id=8.9%20Changes%20in%20Directors'%20Information%20and%20Connected%20Transactions) This section discloses changes in directors' information, including the extension of employment terms for Mr. Fu Weiqiang and Ms. Lin Junxian; during the reporting period, no connected transactions requiring disclosure under Chapter 14A of the Listing Rules occurred - Director appointment extensions: Mr. Fu Weiqiang's employment term with the Company was extended to June 30, 2028; Ms. Lin Junxian's employment term was extended to June 30, 2027[86](index=86&type=chunk) - Connected transactions: During the six months ended June 30, 2025, there were no connected transactions requiring disclosure as connected transactions under Chapter 14A of the Listing Rules[84](index=84&type=chunk)[85](index=85&type=chunk) [Additional Information on the Group's Finance Leasing Business](index=22&type=section&id=Additional%20Information%20on%20the%20Group's%20Finance%20Leasing%20Business) This section provides detailed information on the Group's finance leasing business, including its operational model, target customers, funding channels, and risk management framework [Business Model](index=22&type=section&id=9.1%20Business%20Model) The finance leasing business primarily provides finance leasing and related consulting services within China, with business models including sale-and-leaseback and direct leasing, where the Group, as lessor, obtains security through asset ownership and collateral interests - Service scope: The finance leasing business primarily provides finance leasing and related consulting services within China[87](index=87&type=chunk)[89](index=89&type=chunk) - Business models: Includes sale-and-leaseback (where the customer retains control over the asset, and the Group obtains security through ownership and collateral interests in the asset) and direct leasing (where the Group pays a third-party supplier for the purchase of certain assets selected by the customer and directly leases them to the customer for use)[87](index=87&type=chunk)[89](index=89&type=chunk) [Target Customers and Revenue Composition](index=22&type=section&id=9.2%20Target%20Customers%20and%20Revenue%20Composition) The Group's finance leasing business primarily targets customers in the environmental protection industry, particularly niche segments such as sewage treatment and waste incineration, as well as cogeneration, urban heating, and water supply; as of June 30, 2025, environmental protection industry customers contributed approximately 77% of operating revenue - Target customers: Primarily targets the environmental protection industry, including municipal environmental protection sectors such as sewage treatment, waste incineration, biomass power generation, solid waste treatment, and leachate treatment, as well as cogeneration, urban heating, and water supply[88](index=88&type=chunk)[90](index=90&type=chunk) - Customer composition: As of June 30, 2025, the Group had **92** customers with whom it had transacted and had outstanding balances, including **24** in the Greater Bay Area and **68** in other regions, some of which are subsidiaries of listed companies. Approximately **77** customers are in the environmental protection industry[88](index=88&type=chunk)[90](index=90&type=chunk) Finance Leasing Business Operating Revenue (For the six months ended June 30, 2025) | Metric | 2025 (HKD Thousand) | Year-on-year Change | | :--- | :--- | :--- | | Operating Revenue | 192,796 | +2% | | Operating Revenue from Environmental Protection Industry Customers | 77% | - | [Funding Channels](index=23&type=section&id=9.3%20Funding%20Channels) The Group raises most of its funds by pledging finance lease receivables as collateral for bank financing and bond issuance, and continuously expands the diversity of its funding channels to enhance financial strength - Financing methods: Raising most of the funding required for leasing operations through financing channels such as bank financing and bond issuance by pledging finance lease receivables as collateral[91](index=91&type=chunk)[93](index=93&type=chunk) - Funding sources: Most funding needs are met through external financing, with the remainder covered by internal funds[91](index=91&type=chunk)[93](index=93&type=chunk) - Objective: Actively and continuously expanding the diversity of funding channels, including but not limited to equity and debt financing, to enhance the financial strength of the finance leasing business[91](index=91&type=chunk)[93](index=93&type=chunk) [Risk Management and Internal Control](index=23&type=section&id=9.4%20Risk%20Management%20and%20Internal%20Control) The Group has established a tiered risk assessment policy and stringent internal control measures to mitigate financing default risks and ensure asset quality, effectively managing and responding to potential risks through comprehensive project review processes, continuous post-lease monitoring, and a three-tier risk early warning mechanism [Risk Assessment Policy](index=24&type=section&id=9.4.1%20Risk%20Assessment%20Policy) The Group employs a tiered approach to risk assessment and rigorously reviews potential finance leasing projects to ensure that the risks undertaken align with the Group's risk appetite; the assessment process covers seven stages: project initiation, investigation and evaluation, review and decision-making, project implementation, financing, post-lease monitoring, and risk early warning - Assessment method: The Group adopts a tiered approach to risk assessment and rigorously reviews potential finance leasing projects to ensure that the risks undertaken align with the Group's risk appetite[94](index=94&type=chunk)[96](index=96&type=chunk) - Assessment process: Includes seven stages: project processing and approval, investigation and review, review and decision-making, project implementation, financing provision, post-lease monitoring, and risk early warning[94](index=94&type=chunk)[96](index=96&type=chunk) - Considerations: During the risk assessment, the Group reviews relevant documents of target customers and considers specific factors such as whether the lessee's cash flow can cover the amount, the project's future cash flow, the method and value of guarantees and the amount covered by collateral, the lessee's default cost, and the lessee's asset-liability ratio[95](index=95&type=chunk)[97](index=97&type=chunk) [Key Internal Controls and Continuous Monitoring of Financing](index=25&type=section&id=9.4.2%20Key%20Internal%20Controls%20and%20Continuous%20Monitoring%20of%20Financing) The Group has established internal control measures to define limits, conduct approvals, and continuously monitor the recoverability and collection of finance lease receivables; through monthly off-site and quarterly on-site inspections, and a three-tier risk signal early warning mechanism, risks are effectively managed and responded to - Internal control measures: To minimize the risk of financing defaults, the Group has also established internal control measures to define limits, conduct approvals, and monitor the recoverability and collection of finance lease receivables[98](index=98&type=chunk)[101](index=101&type=chunk) - Continuous monitoring procedures: Include monthly off-site post-lease inspections (monitoring litigation procedures, changes in pledged assets, significant risk warnings) and quarterly on-site post-lease inspections (collecting financial statements, credit reports, environmental monitoring reports, bank statements, invoices, pictures of leased assets, monitoring changes in asset-liability structure)[100](index=100&type=chunk)[102](index=102&type=chunk) - Risk early warning process: Risk signals are categorized into three levels: general, medium, and significant risk. Upon identifying a risk signal, the relevant business manager will propose preliminary action plans and measures, and the project manager and risk control personnel will determine the risk level and action plan for approval by the Chief Risk Officer. The Group will also establish a working group to monitor and follow up on projects with significant risk early warning levels[103](index=103&type=chunk)[104](index=104&type=chunk) - Risk response measures: Include adjusting the internal quality rating of finance lease receivables, adjusting overall arrangements, accelerating lease arrangements, demanding rent repayment, and taking legal action and disposing of pledged or mortgaged assets in accordance with the law[103](index=103&type=chunk)[104](index=104&type=chunk) [Condensed Consolidated Financial Statements](index=27&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the Group's condensed consolidated financial statements, including the statement of profit or loss, financial position, changes in equity, and cash flows [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=27&type=section&id=10.1%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's revenue from continuing operations was HKD 418 million, gross profit was HKD 198 million, profit before tax was HKD 74.21 million, and profit for the period was HKD 44.87 million; profit attributable to owners of the company was HKD 4.79 million, with basic and diluted earnings per share both at HK 0.28 cents Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30, 2025) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Revenue | 417,990 | 411,025 | | Cost of Sales and Services | (220,306) | (232,254) | | Gross Profit | 197,684 | 178,771 | | Other Operating Income | 9,388 | 12,755 | | Selling and Distribution Expenses | (6,046) | (6,580) | | Administrative Expenses | (95,905) | (87,180) | | Share of Profits from Associates | 5,501 | 26,520 | | Finance Costs | (36,409) | (39,240) | | Profit Before Tax | 74,213 | 85,046 | | Income Tax Expense | (29,347) | (19,278) | | Profit for the Period from Continuing Operations | 44,866 | 65,768 | | Profit from Discontinued Operations | – | 41,365 | | **Profit for the Period** | **44,866** | **107,133** | | Profit Attributable to Owners of the Company | 4,788 | 62,942 | | Profit Attributable to Non-controlling Interests | 40,078 | 44,191 | Earnings Per Share (For the six months ended June 30, 2025) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | **From Continuing and Discontinued Operations** | | | | Basic | HK 0.28 cents | HK 3.68 cents | | Diluted | HK 0.28 cents | HK 3.68 cents | | **From Continuing Operations** | | | | Basic | HK 0.28 cents | HK 1.21 cents | | Diluted | HK 0.28 cents | HK 1.21 cents | [Condensed Consolidated Statement of Financial Position](index=29&type=section&id=10.2%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets were HKD 7.82 billion, total liabilities were HKD 5.92 billion, and total equity was HKD 1.90 billion; finance lease receivables constituted the largest portion of non-current assets, while cash and bank balances decreased among current assets Condensed Consolidated Statement of Financial Position Key Data (As of June 30, 2025) | Metric | 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | | :--- | :--- | :--- | | **Non-current Assets:** | | | | Investment Properties | 337,208 | 330,916 | | Property, Plant and Equipment | 611,037 | 596,129 | | Finance Lease Receivables | 3,588,796 | 3,301,054 | | **Current Assets:** | | | | Inventories | 7,500 | 7,337 | | Assets Taken Over | 382,793 | 386,726 | | Finance Lease Receivables | 1,362,142 | 1,254,955 | | Cash and Bank Balances | 570,919 | 717,173 | | **Current Liabilities:** | | | | Borrowings | 2,132,939 | 1,517,149 | | **Non-current Liabilities:** | | | | Borrowings | 3,120,275 | 3,486,130 | | Convertible Notes | 146,364 | 140,469 | | **Total Assets** | **7,822,417** | **7,484,410** | | **Total Liabilities** | **5,923,555** | **5,647,165** | | **Total Equity** | **1,898,862** | **1,837,245** | [Condensed Consolidated Statement of Changes in Equity](index=31&type=section&id=10.3%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, equity attributable to owners of the company increased from HKD 1.07 billion at the beginning of the year to HKD 1.13 billion, primarily due to profit for the period and changes in exchange reserves; non-controlling interests also slightly increased Changes in Equity Attributable to Owners of the Company (As of June 30, 2025) | Metric | January 1, 2025 (HKD Thousand) | June 30, 2025 (HKD Thousand) | Change | | :--- | :--- | :--- | :--- | | Equity Attributable to Owners of the Company | 1,070,749 | 1,130,733 | +5.60% | - Key change factors: Profit for the period of **HKD 4,788,000**; exchange differences arising from translation of overseas operations of **HKD 65,127,000**; dividends paid to non-controlling interests of **HKD (40,779,000)**; transfer to statutory reserve of **HKD 1,376,000**; dividends of **HKD (9,932,000)**[114](index=114&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=33&type=section&id=10.4%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, the Group's net cash outflow from operating activities was HKD 183 million, net cash inflow from investing activities was HKD 9.78 million, and net cash inflow from financing activities was HKD 36.32 million; cash and bank balances decreased by a net of HKD 137 million Condensed Consolidated Statement of Cash Flows Key Data (For the six months ended June 30, 2025) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Net Cash Outflow from Operating Activities | (183,259) | (168,204) | | Net Cash Inflow from Investing Activities | 9,784 | 498,554 | | Net Cash Inflow from Financing Activities | 36,321 | 75,636 | | Net (Decrease)/Increase in Cash and Bank Balances | (137,154) | 405,986 | | Effect of Exchange Rate Changes | 19,784 | (17,525) | | Cash and Bank Balances at June 30 | 570,919 | 956,019 | [Notes to the Condensed Consolidated Financial Statements](index=34&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes explaining the basis of preparation, accounting policies, financial risk management, and specific line items within the condensed consolidated financial statements [Basis of Preparation of Financial Statements (Note 1)](index=34&type=section&id=11.1%20Basis%20of%20Preparation%20of%20Financial%20Statements%20(Note%201)) These interim condensed consolidated financial statements are prepared in accordance with the applicable disclosure requirements of Appendix D2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants; these statements are unaudited by the company's auditors but have been reviewed by the company's Audit Committee and are prepared on a historical cost basis - Basis of preparation: Prepared in accordance with the applicable disclosure requirements of Appendix D2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants[121](index=121&type=chunk)[125](index=125&type=chunk) - Audit status: These interim condensed consolidated financial statements are unaudited by the Company's auditors but have been reviewed by the Company's Audit Committee[122](index=122&type=chunk)[125](index=125&type=chunk) - Measurement basis: These interim condensed consolidated financial statements are prepared on a historical cost basis, except for certain properties and financial instruments which are measured at fair value, revalued amounts, or amortized cost as applicable[122](index=122&type=chunk)[125](index=125&type=chunk) [Application of New and Revised Hong Kong Financial Reporting Standards (Note 2)](index=35&type=section&id=11.2%20Application%20of%20New%20and%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards%20(Note%202)) Except for the adoption of HKAS 21 (Amendment) "Lack of Exchangeability," the accounting policies for this period are consistent with those in the 2024 annual financial statements; the adoption of new standards has no significant impact on the Group's financial performance, and the Group has not early adopted other new or revised HKFRSs that have been issued but are not yet effective - Consistency of accounting policies: Save as described below regarding the revised Hong Kong Financial Reporting Standards, the accounting policies and methods of computation used in the preparation of the condensed consolidated financial statements for the six months ended June 30, 2025, are consistent with those adopted in the Group's annual financial statements for the year ended December 31, 2024[126](index=126&type=chunk)[130](index=130&type=chunk) - Impact: The adoption of the revised Hong Kong Financial Reporting Standards has no significant impact on the Group's financial performance and position for the current or prior accounting periods. Therefore, no adjustments are required for prior accounting periods[127](index=127&type=chunk)[130](index=130&type=chunk) - No early adoption: The Group has not early adopted new and revised Hong Kong Financial Reporting Standards that have been issued but are not yet effective[127](index=127&type=chunk)[130](index=130&type=chunk) [Financial Risk Management (Note 3)](index=35&type=section&id=11.3%20Financial%20Risk%20Management%20(Note%203)) The Group's financial risk management objectives and policies are consistent with those disclosed in the 2024 annual financial statements; in 2025, there were no significant business changes or economic environment shifts affecting the fair value of financial assets and liabilities, and no financial assets were reclassified - Risk management policy: All aspects of the Group's financial risk management objectives and policies are consistent with those disclosed in the annual financial statements for the year ended December 31, 2024[128](index=128&type=chunk)[131](index=131&type=chunk) - No significant changes in 2025: In 2025, there were no significant business changes or economic environment shifts affecting the fair value of financial assets and financial liabilities. Financial assets were not reclassified[128](index=128&type=chunk)[131](index=131&type=chunk) [Revenue (Note 4)](index=35&type=section&id=11.4%20Revenue%20(Note%204)) Revenue represents the total amounts received and receivable during the period from healthcare and elderly care business, big data business, finance leasing business, civil explosives business, and hotel and property investment; for the six months ended June 30, 2025, total revenue was HKD 418 million, with HKD 268 million from customer contracts and HKD 150 million from other income sources - Revenue definition: Revenue refers to the total amounts received and receivable during the period from healthcare and elderly care business, big data business, finance leasing business, civil explosives business, and hotel and property investment income, gross sales of goods to external customers after deducting returns and discounts, total rental income, interest income from finance leases, and consulting service income collected from external parties[129](index=129&type=chunk)[132](index=132&type=chunk) Revenue Composition (For the six months ended June 30, 2025) | Revenue Type | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | **Revenue from Contracts with Customers:** | | | | Big Data Business Platform Construction and Operation Revenue | 744 | 2,878 | | Finance Lease Consulting Service Revenue | 52,731 | 39,599 | | Civil Explosives Business Blasting Engineering Revenue | 16,058 | 24,515 | | Healthcare and Elderly Care Business Operating Revenue | 52,212 | 46,521 | | Sales of Emulsion Explosives | 87,828 | 85,521 | | Healthcare and Elderly Care Business Service Revenue | 57,189 | 50,376 | | Big Data Business Technical Service Revenue | 861 | 204 | | **Subtotal (Customer Contracts)** | **267,623** | **253,195** | | **Other Income Sources:** | | | | Hotel Rental Income | 4,541 | 4,713 | | Investment Property Rental Income | 5,761 | 3,633 | | Finance Lease Interest Income | 140,065 | 149,484 | | **Subtotal (Other Income)** | **150,367** | **157,830** | | **Total Revenue** | **417,990** | **411,025** | - Timing of revenue recognition from customer contracts: Revenue recognized at a point in time was **HKD 193,515,000**, and revenue recognized over a period of time was **HKD 74,108,000**[137](index=137&type=chunk)[138](index=138&type=chunk) [Segment Information (Note 5)](index=38&type=section&id=11.5%20Segment%20Information%20(Note%205)) The Group is currently divided into five operating segments: healthcare and elderly care business, big data business, finance leasing business, civil explosives business, and hotel and property investment; in the first half of 2025, the finance leasing business contributed the largest revenue and profit, the healthcare and elderly care business saw revenue growth but profit decline, and the big data business experienced declines in both revenue and profit - Operating segments: Healthcare and elderly care business, big data business, finance leasing business, civil explosives business, and hotel and property investment[139](index=139&type=chunk)[141](index=141&type=chunk) Segment Revenue and Results (For the six months ended June 30, 2025) | Segment | Revenue (HKD Thousand) | Results (HKD Thousand) | | :--- | :--- | :--- | | Healthcare and Elderly Care Business | 109,401 | 3,386 | | Big Data Business | 1,605 | (3,283) | | Finance Leasing Business | 192,796 | 93,726 | | Civil Explosives Business | 103,886 | 26,570 | | Hotel and Property Investment | 10,302 | 665 | | **Total** | **417,990** | **121,064** | Segment Assets and Liabilities (As of June 30, 2025) | Segment | Assets (HKD Thousand) | Liabilities (HKD Thousand) | | :--- | :--- | :--- | | Healthcare and Elderly Care Business | 412,610 | 362,144 | | Big Data Business | 27,590 | 9,189 | | Finance Leasing Business | 5,412,466 | 4,198,458 | | Civil Explosives Business | 393,279 | 66,082 | | Hotel and Property Investment | 387,058 | 246,768 | | **Total Segment Assets/Liabilities** | **6,633,003** | **4,882,641** | Other Segment Information (For the six months ended June 30, 2025) | Metric | Healthcare and Elderly Care Business | Big Data Business | Finance Leasing Business | Civil Explosives Business | Hotel and Property Investment | Total | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Amortization of Intangible Assets | – | 456 | – | – | – | 456 | | Depreciation of Property, Plant and Equipment | 8,834 | 19 | 73 | 7,436 | 1,872 | 18,234 | | Depreciation of Right-of-Use Assets | 1,147 | – | – | 29 | – | 1,176 | | Additions to Property, Plant and Equipment | 15,568 | – | 389 | 722 | 2,421 | 19,100 | | Provision for Expected Credit Losses on Finance Lease Receivables | – | – | 5,660 | – | – | 5,660 | [Geographical Segment Information](index=43&type=section&id=11.5.1%20Geographical%20Segment%20Information) The Group's healthcare and elderly care business, big data business, finance leasing business, civil explosives business, and hotel and property investment are primarily located in China (excluding Hong Kong), while property investment is located in both China and Hong Kong; China contributed the vast majority of external customer revenue and non-current assets Sales Revenue from External Customers (For the six months ended June 30, 2025) | Region | Sales Revenue from External Customers (HKD Thousand) | | :--- | :--- | | China | 417,690 | | Hong Kong | 300 | | **Total** | **417,990** | Non-current Assets (As of June 30, 2025) | Region | Non-current Assets (HKD Thousand) | | :--- | :--- | | China | 870,038 | | Hong Kong | 78,207 | | **Total** | **948,245** | [Other Operating Income (Note 6)](index=44&type=section&id=11.6%20Other%20Operating%20Income%20(Note%206)) For the six months ended June 30, 2025, the Group's other operating income was HKD 9.39 million, primarily comprising bank interest income, government grants, and dividend income from financial assets Other Operating Income Composition (For the six months ended June 30, 2025) | Item | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Bank Interest Income | 2,573 | 6,851 | | Compensation Received and Government Grants | 502 | 1,402 | | Dividend Income from Financial Assets | 608 | 618 | | Income from Lending Industrial Detonating Cord Capacity | – | 2,322 | [Finance Costs (Note 7)](index=45&type=section&id=11.7%20Finance%20Costs%20(Note%207)) For the six months ended June 30, 2025, the Group's finance costs amounted to HKD 36.41 million, mainly consisting of interest on bank loans, convertible notes, loans from direct holding companies, and other loans Finance Costs Composition (For the six months ended June 30, 2025) | Item | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Handling Fees | – | 2,081 | | Interest on Bank Loans | 12,919 | 25,232 | | Interest on Convertible Notes | 5,895 | 8,291 | | Interest on Lease Liabilities | 786 | 120 | | Interest on Loans from Direct Holding Company | 1,136 | 2,293 | | Interest on Other Loans | 15,673 | 36 | | **Total** | **36,409** | **39,240** | - Interest capitalization and costs: Borrowing interest under finance costs is derived from total interest expense recognized during the period of approximately **HKD 112,446,000** (for the six months ended June 30, 2024: approximately HKD 118,210,000) after deducting capitalized interest of **HKD 0** (for the six months ended June 30, 2024: approximately HKD 1,648,000) and borrowing costs from finance leases included in cost of sales and services of approximately **HKD 76,037,000** (for the six months ended June 30, 2024: approximately HKD 79,403,000)[164](index=164&type=chunk)[165](index=165&type=chunk) [Income Tax Expense (Note 8)](index=46&type=section&id=

[Company Information](index=4&type=section&id=Company%20Information) [Board of Directors and Committee Composition](index=4&type=section&id=Board%20of%20Directors%20and%20Committee%20Composition) The company's board of directors comprises executive, non-executive, and independent non-executive directors, supported by audit, nomination, remuneration, and strategy committees to ensure robust corporate governance - Board members include **Wang Xuning** (Chairman and CEO), **Han Run** (CFO), **Huang Shuling** (Executive Director), **Stassi Anastas ANASTASSOV** (Non-Executive Director), and **Yuan DING**, **Yang Xianxiang**, **Sun Zhe**, **Maximilian Walter CONZE** (Independent Non-Executive Directors)[6](index=6&type=chunk) - The Audit Committee Chairman is **Yuan DING**, Nomination Committee Chairman is **Wang Xuning**, Remuneration Committee Chairman is **Yang Xianxiang**, and Strategy Committee Chairman is **Wang Xuning**[6](index=6&type=chunk) [Company Basic Information](index=4&type=section&id=Company%20Basic%20Information) The company is registered in the Cayman Islands, with its principal place of business in Hong Kong, and was listed on **December 18, 2019**, under stock code **1691**, with Paul Hastings and Maples Group as legal advisors and EY as auditor - The company's registered office is in the Cayman Islands, with its head office and principal place of business in Hong Kong located at Cheung Kong Center II, Central[6](index=6&type=chunk)[7](index=7&type=chunk) - The Hong Kong share registrar is Tricor Investor Services Limited, and the auditor is **Ernst & Young**[8](index=8&type=chunk) - The company's stock code is **1691**, and its listing date was **December 18, 2019**[8](index=8&type=chunk) [Management Discussion and Analysis](index=6&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=6&type=section&id=Business%20Review) The Group is a global leader in quality small home appliances, committed to enhancing global family life through innovative smart home products, deepening core businesses, and accelerating Asia Pacific market expansion via Joyoung and SharkNinja APAC segments - The Group's mission is to enhance the daily lives of global families through revolutionary innovation and design-driven smart home products[10](index=10&type=chunk) - Core competencies include: (i) developing design-led innovative products; (ii) implementing diverse brand and product marketing; and (iii) establishing an omnichannel sales network[10](index=10&type=chunk) - Operations are divided into the **SharkNinja Asia Pacific segment** (Asia Pacific market, excluding Mainland China) and the **Joyoung segment** (Mainland China market, focusing on kitchen and cleaning appliances)[11](index=11&type=chunk) [Mainland China (Joyoung Segment)](index=7&type=section&id=Mainland%20China%20(Joyoung%20Segment)) The Joyoung segment in Mainland China continues to prioritize technological innovation and R&D, launching multiple Space Series new products and actively expanding into emerging channels, strengthening content e-commerce platforms to boost brand influence and conversion rates - In **H1 2025**, the Joyoung segment launched new Space Series products including the **K6 fully automatic quiet soymilk maker**, **B1U variable frequency quiet blender**, **40N1U Pro non-stick titanium rice cooker**, **LZ9 AI variable frequency juicer**, and **R1001 heated water purifier**[12](index=12&type=chunk) - Joyoung actively expands into new channels, coordinating offline stores, shelf e-commerce, and content e-commerce, with a focus on platforms like **Xiaohongshu**, **WeChat Channels**, and **Douyin**[12](index=12&type=chunk)[13](index=13&type=chunk) [SharkNinja - Asia Pacific (Excluding Mainland China)](index=7&type=section&id=SharkNinja%20-%20Asia%20Pacific%20(Excluding%20Mainland%20China)) The SharkNinja Asia Pacific segment achieved strong revenue growth in **H1 2025**, driven by successful innovative product launches, new category expansion, and accelerated momentum in emerging markets, particularly Australia, South Korea, and Japan SharkNinja Asia Pacific Segment Revenue from Third-Party Customers | Metric | H1 2025 (US$ million) | H1 2024 (US$ million) | YoY Growth Rate | | :--- | :--- | :--- | :--- | | Revenue | 230.1 | 123.1 | 86.9% | - Growth was primarily driven by strong performance in **Shark vacuum cleaners** and **Ninja kitchen appliances**, benefiting from innovative products in strategic core categories, strategic expansion into new categories, and accelerated development in emerging markets[14](index=14&type=chunk) - In the Japanese market, **Shark** brand cordless stick vacuum cleaner market share slightly increased to **24%**, while **Ninja** brand food preparation category market share reached **19%**, further rising to **26%** in June[16](index=16&type=chunk) - Australia and New Zealand net revenue **doubled to US$96.3 million**, with cleaning category market share reaching **20.5%**, food preparation and cooking categories expected to exceed **20%**, and personal care category market share increasing by **320 basis points to 14.7%**[17](index=17&type=chunk)[18](index=18&type=chunk) - South Korea net revenue grew by nearly **90% to US$57.6 million**, with cordless vacuum cleaner market share **doubling to 14%**, food preparation category market share increasing by **900 basis points to 18.5%**, securing the top market position[19](index=19&type=chunk) - Revenue in other emerging markets (e.g., Singapore, Philippines, Thailand, and Indonesia) more than **doubled to US$10.3 million**[20](index=20&type=chunk) [Financial Review](index=9&type=section&id=Financial%20Review) The Group's total revenue increased by **4.2%** year-on-year, but financial asset losses and increased operating costs led to a net loss of approximately **US$53.7 million**, with net loss attributable to owners of the parent at approximately **US$59.2 million**, alongside declines in adjusted EBITDA and adjusted net profit 2025 H1 Key Financial Metrics | Metric | H1 2025 (US$ million) | H1 2024 (US$ million) | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | 774.1 | 743.0 | +4.2% | | Gross Profit | 248.5 | 245.8 | +1.1% | | Gross Margin | 32.1% | 33.1% | -1.0 percentage points | | Net Loss | (53.7) | 29.6 (Profit) | -281.4% | | Net Loss Attributable to Owners of the Parent | (59.2) | 21.8 (Profit) | -371.6% | | EBITDA Loss | (44.6) | 41.7 (EBITDA) | -207.0% | | Adjusted EBITDA | 22.6 | 30.5 | -25.9% | | Adjusted Net Profit | 13.5 | 18.4 | -26.6% | [Revenue](index=10&type=section&id=Revenue) The Group's total revenue grew by **4.2%** year-on-year to **US$774.1 million**. SharkNinja Asia Pacific segment and Shark/Ninja brand revenue significantly increased, offsetting weaker performance in Joyoung and some Mainland China products, driven by strong cleaning and food preparation appliance categories Revenue Breakdown by Business Segment (US$ million) | Business Segment | 2025 | Share | 2024 | Share | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Joyoung Segment (Third-Party) | 490.1 | 63.3% | 487.2 | 65.6% | +0.6% | | SharkNinja Asia Pacific Segment (Third-Party) | 230.1 | 29.7% | 123.1 | 16.6% | +86.9% | | Total Related Party Revenue | 53.9 | 7.0% | 132.7 | 17.8% | -59.4% | | **Total Revenue** | **774.1** | **100.0%** | **743.0** | **100.0%** | **+4.2%** | Sales to Third-Party Customers Breakdown by Brand (US$ million) | Brand | 2025 | Share | 2024 | Share | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Joyoung | 484.9 | 67.3% | 478.2 | 78.4% | +1.4% | | Shark | 148.0 | 20.6% | 92.8 | 15.2% | +59.5% | | Ninja | 87.3 | 12.1% | 39.3 | 6.4% | +122.1% | | **Total** | **720.2** | **100.0%** | **610.3** | **100.0%** | **+17.9%** | Sales to Third-Party Customers Breakdown by Region (US$ million) | Region | 2025 | Share | 2024 | Share | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Mainland China | 483.6 | 67.1% | 478.4 | 78.4% | +1.1% | | Australia & New Zealand | 96.3 | 13.4% | 44.6 | 7.3% | +115.9% | | Japan | 65.9 | 9.2% | 43.7 | 7.2% | +50.8% | | Other Markets | 74.4 | 10.3% | 43.6 | 7.1% | +70.6% | | **Total** | **720.2** | **100.0%** | **610.3** | **100.0%** | **+17.9%** | Sales to Third-Party Customers Breakdown by Product Category (US$ million) | Product Category | 2025 | Share | 2024 | Share | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Cooking Appliances | 280.4 | 38.9% | 275.8 | 45.2% | +1.7% | | Food Preparation Appliances | 238.6 | 33.1% | 183.6 | 30.1% | +30.0% | | Cleaning Appliances | 131.1 | 18.2% | 86.5 | 14.2% | +51.6% | | Other | 70.1 | 9.8% | 64.4 | 10.5% | +8.9% | | **Total** | **720.2** | **100.0%** | **610.3** | **100.0%** | **+17.9%** | [Cost of Sales](index=14&type=section&id=Cost%20of%20Sales) The Group's cost of sales increased by **5.7%** year-on-year to **US$525.6 million**, with third-party sales cost rising **21.0%** primarily due to increased sales volume and higher freight costs Cost of Sales (US$ million) | Metric | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total Cost of Sales | 525.6 | 497.1 | +5.7% | | Cost of Sales to Third-Party Customers | 478.6 | 395.6 | +21.0% | | Joyoung Segment (Third-Party) | 345.7 | 330.7 | +4.5% | | SharkNinja Asia Pacific Segment (Third-Party) | 132.9 | 64.9 | +104.8% | - SharkNinja Asia Pacific segment cost of sales significantly increased by **104.8%**, primarily due to higher sales across markets and increased freight costs[40](index=40&type=chunk) [Gross Profit](index=14&type=section&id=Gross%20Profit) The Group's gross profit increased by **1.1%** year-on-year to **US$248.5 million**, but gross margin decreased by **1.0 percentage point** to **32.1%**, with third-party sales gross margin declining **1.7 percentage points** to **33.5%** due to Joyoung price adjustments, increased freight, market mix shifts, and strategic discounts in SharkNinja APAC Gross Profit and Gross Margin (US$ million) | Metric | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total Gross Profit | 248.5 | 245.8 | +1.1% | | Total Gross Margin | 32.1% | 33.1% | -1.0 percentage points | | Gross Profit from Third-Party Sales | 241.6 | 214.7 | +12.5% | | Gross Margin from Third-Party Sales | 33.5% | 35.2% | -1.7 percentage points | | Joyoung Segment Gross Margin | 29.5% | 32.1% | -2.6 percentage points | | SharkNinja Asia Pacific Segment Gross Margin | 42.2% | 47.3% | -5.1 percentage points | - SharkNinja Asia Pacific segment gross margin declined mainly due to increased freight costs, changes in market mix, and strategic discounts in core markets[44](index=44&type=chunk) [Other Income and Gains](index=15&type=section&id=Other%20Income%20and%20Gains) The Group's other income and gains significantly decreased by **65.4%** year-on-year to **US$19.6 million**, primarily due to a net loss on financial assets in the current period compared to a substantial net gain in the prior period Other Income and Gains (US$ million) | Metric | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total | 19.6 | 56.7 | -65.4% | | Bank Interest Income | 6.5 | 6.6 | -1.5% | | Government Grants | 1.7 | 3.7 | -54.0% | | Trademark License Income | 0.0 | 4.7 | -100.0% | | Net Exchange Differences | 8.6 | 0.0 | N/A | | Net Gain on Financial Assets at FVTPL | 0.0 | 35.3 | -100.0% | - A substantial net gain on financial assets measured at fair value through profit or loss (**US$35.3 million**) was recorded in the prior period, while a loss was recorded in the current period (included in other expenses)[46](index=46&type=chunk) [Selling and Distribution Expenses](index=16&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses increased by **12.2%** year-on-year to **US$164.5 million**, mainly driven by significant advertising and marketing investments by SharkNinja Asia Pacific for new product launches and brand awareness, partially offset by optimized media spending and controlled warehousing costs in Joyoung Selling and Distribution Expenses (US$ million) | Metric | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total | 164.5 | 146.6 | +12.2% | | Channel Marketing Expenses | 57.6 | 52.5 | +9.7% | | Advertising Expenses | 53.3 | 40.4 | +31.9% | | Staff Costs | 27.1 | 23.5 | +15.3% | | Warehousing and Transportation Expenses | 15.5 | 17.3 | -10.5% | - The SharkNinja Asia Pacific segment heavily invested in advertising and marketing activities to support new product launches and enhance brand awareness in the Asia Pacific market[48](index=48&type=chunk) [Administrative Expenses](index=17&type=section&id=Administrative%20Expenses) Administrative expenses increased by **14.3%** year-on-year to **US$133.4 million**, primarily due to higher share-based compensation and overall administrative costs supporting rapid Asia Pacific business expansion, partially offset by effective cost control measures in the Joyoung segment Administrative Expenses (US$ million) | Metric | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total | 133.4 | 116.7 | +14.3% | | Staff Costs | 97.0 | 83.6 | +16.0% | | Office Expenses | 9.9 | 8.5 | +16.5% | | Professional Service Fees | 6.4 | 7.1 | -9.9% | | Depreciation and Amortization | 4.9 | 4.5 | +8.9% | - Administrative expenses increased primarily due to higher share-based compensation during the period and overall administrative expenses to support rapid Asia Pacific business expansion[52](index=52&type=chunk) [Other Expenses](index=18&type=section&id=Other%20Expenses) Other expenses surged by **644.4%** year-on-year to **US$20.1 million**, primarily due to a net loss on financial assets measured at fair value through profit or loss in the current period, contrasting with a net gain in the prior period Other Expenses (US$ million) | Metric | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total | 20.1 | 2.7 | +644.4% | | Net Loss on Financial Assets at FVTPL | 19.2 | 0.0 | N/A | | Net Exchange Differences | 0.0 | 2.4 | -100.0% | - The significant increase was primarily due to a net loss on financial assets measured at fair value through profit or loss (**US$19.2 million**) recorded during the reporting period, compared to a net gain in the prior period[54](index=54&type=chunk) [Finance Costs](index=18&type=section&id=Finance%20Costs) Finance costs decreased by **16.7%** year-on-year to **US$1.5 million**, mainly due to the absence of one-off accelerated amortization of deferred finance costs, though partially offset by increased bank loan interest Finance Costs (US$ million) | Metric | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total | 1.5 | 1.8 | -16.7% | | Bank Loan Interest | 0.8 | 0.0 | N/A | | Lease Liabilities Interest | 0.3 | 0.3 | 0.0% | | Amortization of Deferred Finance Costs | 0.0 | 1.2 | -100.0% | - The decrease was mainly due to the absence of one-off accelerated amortization of deferred finance costs during the reporting period, though partially offset by increased bank loan interest[56](index=56&type=chunk) [Income Tax](index=19&type=section&id=Income%20Tax) Income tax expense decreased by **70.8%** year-on-year to **US$2.1 million**, with the Group applying the mandatory recognition and disclosure exception for Pillar Two income tax, anticipating no significant risks Income Tax Expense (US$ million) | Metric | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total | 2.1 | 7.2 | -70.8% | - The Group has applied the mandatory recognition and disclosure exception for Pillar Two income tax model rules and anticipates no significant risks from Pillar Two income tax[58](index=58&type=chunk)[60](index=60&type=chunk) [Profit for the Period](index=20&type=section&id=Profit%20for%20the%20Period) Profit for the period shifted from a **US$29.6 million** profit in the prior year to a net loss of **US$53.7 million**, a **281.4%** year-on-year decrease, primarily influenced by the aforementioned financial factors Profit for the Period (US$ million) | Metric | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Profit for the Period | (53.7) (Loss) | 29.6 (Profit) | -281.4% | [Non-IFRS Measures](index=20&type=section&id=Non-IFRS%20Measures) The Group utilizes non-IFRS measures like adjusted net profit, EBITDA, and adjusted EBITDA to provide a clearer view of ongoing operational performance, excluding impacts from acquisitions, restructuring, and non-recurring items, with both adjusted net profit and adjusted EBITDA declining during the reporting period - Non-IFRS measures are used to compare operating performance across periods, excluding items not affecting ongoing operations, such as acquisitions, restructuring, and non-operating or one-off expenses and gains[62](index=62&type=chunk) Adjusted Net Profit, EBITDA, and Adjusted EBITDA (US$ million) | Metric | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | (Loss)/Profit for the Period | (53.7) | 29.6 | -281.4% | | Adjusted Net Profit | 13.5 | 18.4 | -26.6% | | (EBITDA Loss)/EBITDA | (44.6) | 41.7 | -207.0% | | Adjusted EBITDA | 22.6 | 30.5 | -25.9% | [Liquidity and Financial Resources](index=23&type=section&id=Liquidity%20and%20Financial%20Resources) The Group primarily funds operations with cash generated from operating activities; as of **June 30, 2025**, cash and cash equivalents increased to **US$452.0 million**, total borrowings significantly rose to **US$48.8 million**, leading to a higher gearing ratio, while inventory remained stable, trade receivables decreased, and trade payables slightly declined Liquidity and Financial Resources Overview (US$ million) | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 452.0 | 359.6 | +25.7% | | Total Borrowings | 48.8 | 15.0 | +225.3% | | Inventories | 153.8 | 154.1 | -0.2% | | Trade Receivables | 364.2 | 399.2 | -8.8% | | Trade Payables | 507.6 | 522.3 | -2.8% | | Gearing Ratio | 10.3% | 4.7% | +5.6 percentage points | - Inventory turnover days increased from **46 days** in **2024** to **53 days** in **H1 2025**, reflecting SharkNinja Asia Pacific's proactive stocking to support business growth[73](index=73&type=chunk) - The decrease in trade receivables was primarily due to lower sales in the Joyoung segment in **Q2 2025** compared to **Q4 2024**[74](index=74&type=chunk) - The gearing ratio increased primarily due to higher bank borrowings during the reporting period[77](index=77&type=chunk) - Capital expenditure during the reporting period was approximately **US$20.9 million**, a slight decrease from **US$22.3 million** in the prior period[83](index=83&type=chunk) [Capital Commitments](index=26&type=section&id=Capital%20Commitments) As of **June 30, 2025**, the Group had no capital commitments - As of **June 30, 2025**, the Group had no capital commitments[85](index=85&type=chunk) [Future Plans for Material Investments or Capital Assets](index=26&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) As of **June 30, 2025**, the Group had no future plans for material investments or capital assets - As of **June 30, 2025**, the Group had no future plans for material investments or capital assets[86](index=86&type=chunk) [Outlook and Strategy](index=26&type=section&id=Outlook%20and%20Strategy) The Group is committed to achieving sustainable growth through deeper consumer insights, product innovation, sales network expansion, leveraging new media, maximizing synergies, and seeking strategic collaborations, while capitalizing on Asia Pacific's consumption upgrade opportunities and embracing intelligent, digital, and sustainable development trends amidst complex global economic conditions - The Joyoung segment will continue to focus on its core small home appliance business, deepen consumer insights, develop cutting-edge and design-led innovative products, expand its sales network, leverage social media to enhance brand awareness, and seek potential strategic collaborations and M&A opportunities[87](index=87&type=chunk) - Joyoung will uphold its brand DNA of **'health'** and **'innovation'**, launching industry-leading flagship products and increasing investment in innovative technologies for entry-level price segments to achieve full price range coverage and differentiated competition[88](index=88&type=chunk) - The SharkNinja Asia Pacific segment will focus on development and expansion in the Asia Pacific region (excluding Mainland China), with a strategic emphasis on existing category growth, new category launches, and new market expansion[89](index=89&type=chunk)[90](index=90&type=chunk)[92](index=92&type=chunk) - The Group will continue to leverage its strengths in consumer insights, technology R&D, and supply chain management, aligning with new trends in intelligence, digitalization, and sustainable development, to seize opportunities from robust Asia Pacific demand and global market expansion[93](index=93&type=chunk) [Corporate Governance and Other Information](index=29&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Changes in Board and Board Committees](index=29&type=section&id=Changes%20in%20Board%20and%20Board%20Committees) Ms Han Run was appointed as a member of the Nomination Committee on March 27, 2025, increasing its membership to five - Ms Han Run was appointed as a member of the Nomination Committee on **March 27, 2025**[94](index=94&type=chunk) [Changes in Directors' Information](index=29&type=section&id=Changes%20in%20Directors'%20Information) No changes in directors' information were reported as required by Listing Rule 13.51B(1) - No changes in directors' information required to be disclosed under Listing Rule **13.51B(1)** were reported[95](index=95&type=chunk) [Disclosure Pursuant to Listing Rule 13.21](index=29&type=section&id=Disclosure%20Pursuant%20to%20Listing%20Rule%2013.21) The company entered into a **US$100 million** loan facility agreement with a bank, which may be cancelled and become immediately repayable if controlling shareholder Mr Wang Xuning ceases to control over 50.1% of the company's voting rights or no longer serves as Chairman of the Board - The company entered into a financing agreement with a bank for a **US$100,000,000** loan facility, with the final maturity date being **36 months** after the financing agreement date[96](index=96&type=chunk) - The financing agreement stipulates that if controlling shareholder **Mr Wang Xuning** ceases to directly or indirectly control more than **50.1%** of the company's general meeting voting rights or ceases to be the Chairman of the Board, the total commitments under the facility may be cancelled, and all outstanding amounts may become immediately due and payable[96](index=96&type=chunk) [Discloseable Transactions](index=29&type=section&id=Discloseable%20Transactions) The Group entered into two foreign exchange forward contracts to manage currency conversion risks for RMB against various foreign currencies generated by the SharkNinja Asia Pacific segment, aiming to reduce exchange rate risk - The Group entered into two foreign exchange forward contracts with HSBC Bank (China) Company Limited, with notional amounts of offshore **RMB872 million** and up to **US$200 million**, respectively[99](index=99&type=chunk) - These contracts aim to reduce exchange rate risks associated with trade receivables and payables denominated in currencies other than RMB[100](index=100&type=chunk) [Corporate Governance Practices](index=30&type=section&id=Corporate%20Governance%20Practices) The company complies with the Corporate Governance Code, with two deviations: the Chairman and CEO roles are combined by Mr Wang Xuning, and the Chairman did not attend the AGM; the Board believes the combined role benefits business development and operational coordination - The roles of Chairman and Chief Executive Officer are combined by **Mr Wang Xuning**, deviating from Corporate Governance Code provision **C.2.1**[102](index=102&type=chunk) - Chairman **Mr Wang Xuning** was unable to attend the Annual General Meeting held on **May 22, 2025**, deviating from Corporate Governance Code provision **F.2.2**[104](index=104&type=chunk) - The Board believes that **Mr Wang Xuning's** dual role benefits the Group's business development and operational coordination among Joyoung, SharkNinja Asia Pacific, and SharkNinja, Inc[103](index=103&type=chunk) [Compliance with Model Code for Securities Transactions](index=30&type=section&id=Compliance%20with%20Model%20Code%20for%20Securities%20Transactions) The company adopted the Model Code set out in Appendix C3 of the Listing Rules, with all directors confirming compliance during the reporting period - The company has adopted the Model Code set out in Appendix **C3** of the Listing Rules, applicable to all directors and relevant employees who may possess inside information[105](index=105&type=chunk) - All directors confirmed compliance with all standards stipulated by the Model Code during the reporting period[106](index=106&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares, and Debentures of the Company and its Associated Corporations](index=31&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares,%20and%20Debentures%20of%20the%20Company%20and%20its%20Associated%20Corporations) As of **June 30, 2025**, several directors and chief executives held shares in the company and associated corporations (e.g., Joyoung) through discretionary trusts, controlled corporate interests, and beneficial interests, with Mr Wang Xuning holding approximately 70.86% of the company's equity Directors' or Chief Executive's Interests in Company Shares | Name of Director or Chief Executive | Nature of Interest | Long/Short Position | Number of Shares | Approximate % of Company's Equity | | :--- | :--- | :--- | :--- | :--- | | Mr Wang Xuning | Founder of discretionary trust, controlled corporate interest, interest held jointly with other persons | Long Position | 2,381,078,381 | 68.53% | | Mr Wang Xuning | Beneficial interest | Long Position | 81,170,295 | 2.33% | | Ms Han Run | Founder of discretionary trust | Long Position | 2,381,078,381 | 68.53% | | Ms Han Run | Beneficial interest | Long Position | 28,132,073 | 0.81% | | Ms Huang Shuling | Founder of discretionary trust | Long Position | 1,836,844,233 | 52.87% | | Mr Yang Xianxiang | Beneficial interest | Long Position | 313,500 | 0.01% | Directors' or Chief Executive's Interests in Associated Corporation (Joyoung) | Name of Director or Chief Executive | Nature of Interest | Long/Short Position | Associated Corporation | Number of Shares | Approximate % of Associated Corporation's Equity | | :--- | :--- | :--- | :--- | :--- | :--- | | Ms Han Run | Beneficial interest | Long Position | Joyoung | 1,250,000 | 0.16% | | Ms Huang Shuling | Beneficial interest | Long Position | Joyoung | 92,700 | 0.01% | [Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares](index=34&type=section&id=Substantial%20Shareholders'%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares) As of **June 30, 2025**, several entities and individuals, as substantial shareholders, held significant shares in the company through beneficial interests, controlled corporate interests, and as founders of discretionary trusts, with JS&W Global holding 52.87% and Everbright Trust (Hong Kong) Limited holding 68.53% equity Substantial Shareholders' Interests in Company Shares | Name of Shareholder | Nature of Interest | Long/Short Position | Number of Shares Held | Approximate % of Company's Equity | | :--- | :--- | :--- | :--- | :--- | | JS&W Global | Beneficial interest | Long Position | 1,836,844,233 | 52.87% | | Hezhou | Controlled corporate interest | Long Position | 1,836,844,233 | 52.87% | | Tong Zhou | Controlled corporate interest | Long Position | 1,836,844,233 | 52.87% | | Everbright Trust (Hong Kong) Limited | Trustee | Long Position | 2,381,078,381 | 68.53% | | JS&W Capital | Beneficial interest | Long Position | 544,234,148 | 15.66% | - Several individuals (e.g., **Mr Zhu Hongtao**, **Ms Yang Ningning**, **Mr Jiang Guangyong**) are deemed to have interests in shares held by **JS&W Global** through their capacity as founders of discretionary trusts[113](index=113&type=chunk)[114](index=114&type=chunk)[116](index=116&type=chunk) [Restricted Share Unit Scheme](index=38&type=section&id=Restricted%20Share%20Unit%20Scheme) The company operates a Restricted Share Unit Scheme to reward and attract talent; for the six months ended **June 30, 2025**, no new units were granted, but **17,700,000** restricted share units vested, with **115,287,138 units** remaining available for grant - The Restricted Share Unit Scheme aims to recognize and reward participants' contributions to the Group and attract top talent[121](index=121&type=chunk) - No new restricted share units were granted for the six months ended **June 30, 2025**[122](index=122&type=chunk) Restricted Share Unit Movement (units) | Metric | As of Jan 1, 2025 | Granted during the period | Vested during the period | Forfeited or cancelled during the period | Lapsed during the period | As of June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Company Directors or Senior Management | 34,400,000 | – | 17,200,000 | – | – | 17,200,000 | | 1 Other Employee | 1,000,000 | – | 500,000 | – | – | 500,000 | | **Total** | **35,400,000** | **–** | **17,700,000** | **–** | **–** | **17,700,000** | - As of **June 30, 2025**, the number of restricted share units available for grant under the Restricted Share Unit Scheme remained at **115,287,138 units**[122](index=122&type=chunk) [Joyoung Employee Share Scheme I](index=39&type=section&id=Joyoung%20Employee%20Share%20Scheme%20I) Joyoung adopted Employee Share Scheme I in **2022** to incentivize up to 30 eligible employees; as of the reporting date, the scheme held **4,086,250 Joyoung shares**, representing approximately 0.5% of Joyoung's total issued share capital - Joyoung Employee Share Scheme I was adopted on **March 28, 2022**, aiming to admit up to **30 eligible employees**, including directors, senior management, and core management team members[129](index=129&type=chunk)[130](index=130&type=chunk) - The scheme has a term of **72 months**, with **32 months** remaining as of the reporting date, and target shares will vest in five tranches[130](index=130&type=chunk) - As of the reporting date, Joyoung Employee Share Scheme I collectively held **4,086,250 Joyoung shares**, representing approximately **0.5%** of Joyoung's total issued share capital[131](index=131&type=chunk) [Sufficient Public Float](index=39&type=section&id=Sufficient%20Public%20Float) The company has been granted a waiver by the Stock Exchange from the minimum public float requirement, needing to maintain a minimum public float of 17.16%, and was in compliance as of the reporting date - The Stock Exchange granted the company a waiver from Listing Rule **8.08(1)** regarding minimum public float, requiring it to maintain a minimum public float of **17.16%**[133](index=133&type=chunk) - As of the reporting date, the company's public float complied with relevant requirements[133](index=133&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=39&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) For the six months ended **June 30, 2025**, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities, and no treasury shares were held at period-end - For the six months ended **June 30, 2025**, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[134](index=134&type=chunk) - As of the end of the reporting period, the company held no treasury shares[134](index=134&type=chunk) [Employees and Remuneration Policy](index=40&type=section&id=Employees%20and%20Remuneration%20Policy) As of **June 30, 2025**, the Group had approximately **2,447 employees** with staff costs of **US$124.1 million**, providing training, salaries, bonuses, and benefits, and maintaining a labor union to protect employee rights Employees and Remuneration Overview | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Employees | 2,447 | 2,558 | | Staff Costs (US$ million) | 124.1 | 103.3 | - The Group provides training to all employees in areas such as corporate culture, R&D, strategy, policies and internal controls, internal systems, and business skills[135](index=135&type=chunk) - Employee remuneration includes salaries and bonuses, with benefits covering medical, pension, work injury insurance, and other miscellaneous benefits[135](index=135&type=chunk) [Material Investments, Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=40&type=section&id=Material%20Investments,%20Acquisitions%20and%20Disposals%20of%20Subsidiaries,%20Associates%20and%20Joint%20Ventures) The Group did not undertake any material investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures during the reporting period - The Group made no material investments during the reporting period[136](index=136&type=chunk) - During the reporting period, the Group also did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures[136](index=136&type=chunk) [Material Events After Reporting Period](index=40&type=section&id=Material%20Events%20After%20Reporting%20Period) The Group had no material events after **June 30, 2025** - The Group had no material events after **June 30, 2025**[137](index=137&type=chunk) [Interim Dividend](index=40&type=section&id=Interim%20Dividend) The Board does not recommend paying any interim dividend for the six months ended **June 30, 2025** - The Board does not recommend paying any interim dividend for the six months ended **June 30, 2025** (2024: nil)[138](index=138&type=chunk) [Audit Committee](index=40&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, reviewed the Group's unaudited interim condensed consolidated financial information for the reporting period and discussed it with the auditor - The Audit Committee comprises three independent non-executive directors: **Mr Yuan DING** (Chairman), **Mr Yang Xianxiang**, and **Mr Sun Zhe**[139](index=139&type=chunk) - The Audit Committee discussed with the auditor and reviewed the Group's unaudited interim condensed consolidated financial information for the reporting period, including the accounting principles and practices adopted by the Group[139](index=139&type=chunk) [Independent Review Report](index=41&type=section&id=Independent%20Review%20Report) [Conclusion of Review](index=41&type=section&id=Conclusion%20of%20Review) EY reviewed the interim financial information according to Hong Kong Standard on Review Engagements 2410 and found no matters suggesting the interim financial information was not prepared in all material respects in accordance with IAS 34 - The auditor reviewed the Group's unaudited consolidated financial information for the reporting period in accordance with Hong Kong Standard on Review Engagements **2410** issued by the Hong Kong Institute of Certified Public Accountants[139](index=139&type=chunk)[141](index=141&type=chunk) - Based on the review, the auditor noted no matters that caused them to believe the interim financial information was not prepared in all material respects in accordance with **IAS 34**[142](index=142&type=chunk) [Interim Condensed Consolidated Statement of Profit or Loss](index=42&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) [Profit or Loss Statement Overview](index=42&type=section&id=Profit%20or%20Loss%20Statement%20Overview) For the six months ended **June 30, 2025**, the Group reported total revenue of **US$774,092 thousand**, but increased cost of sales, selling and distribution expenses, administrative expenses, and other expenses resulted in a net loss of **US$53,739 thousand** for the period, with loss attributable to owners of the parent at **US$59,242 thousand** Interim Condensed Consolidated Statement of Profit or Loss Summary (US$ thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 774,092 | 742,970 | | Cost of Sales | (525,577) | (497,131) | | Gross Profit | 248,515 | 245,839 | | Other Income and Gains | 19,580 | 56,703 | | Selling and Distribution Expenses | (164,468) | (146,594) | | Administrative Expenses | (133,395) | (116,722) | | Other Expenses | (20,131) | (2,663) | | Finance Costs | (1,514) | (1,768) | | (Loss)/Profit Before Tax | (51,600) | 36,784 | | Income Tax Expense | (2,139) | (7,221) | | (Loss)/Profit for the Period | (53,739) | 29,563 | | (Loss)/Profit Attributable to Owners of the Parent | (59,242) | 21,797 | | Basic (Loss)/Earnings Per Share (US cents) | (1.7) | 0.6 | [Interim Condensed Consolidated Statement of Comprehensive Income](index=43&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) [Comprehensive Income Statement Overview](index=43&type=section&id=Comprehensive%20Income%20Statement%20Overview) For the six months ended **June 30, 2025**, the Group's loss for the period was **US$53,739 thousand**, which, combined with exchange differences on translating foreign operations of **US$4,788 thousand**, resulted in a total comprehensive loss of **US$48,951 thousand** for the period Interim Condensed Consolidated Statement of Comprehensive Income Summary (US$ thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | (Loss)/Profit for the Period | (53,739) | 29,563 | | Exchange differences on translating foreign operations | 4,788 | (9,418) | | Total Comprehensive Income for the Period | (48,951) | 20,145 | | Attributable to Owners of the Parent | (54,843) | 13,865 | | Non-controlling Interests | 5,892 | 6,280 | [Interim Condensed Consolidated Statement of Financial Position](index=44&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) [Financial Position Statement Overview](index=44&type=section&id=Financial%20Position%20Statement%20Overview) As of **June 30, 2025**, the Group's total assets were **US$1,467,622 thousand**, a decrease from **December 31, 2024**. Non-current assets decreased, current assets increased, and current liabilities increased, leading to a reduction in net assets to **US$639,039 thousand** Interim Condensed Consolidated Statement of Financial Position Summary (US$ thousand) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Non-current Assets | 285,902 | 369,353 | | Total Current Assets | 1,181,720 | 1,127,457 | | Total Current Liabilities | 814,799 | 772,265 | | Net Current Assets | 366,921 | 355,192 | | Total Non-current Liabilities | 13,784 | 32,372 | | Net Assets | 639,039 | 692,173 | | Total Equity | 639,039 | 692,173 | - Financial assets measured at fair value through profit or loss decreased from **US$216,470 thousand** to **US$136,506 thousand**[147](index=147&type=chunk) - Interest-bearing bank borrowings (current portion) increased from **nil** to **US$48,815 thousand**, while the non-current portion decreased from **US$15,000 thousand** to **nil**[147](index=147&type=chunk)[148](index=148&type=chunk) [Interim Condensed Consolidated Statement of Changes in Equity](index=46&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) [Changes in Equity Overview](index=46&type=section&id=Changes%20in%20Equity%20Overview) For the six months ended **June 30, 2025**, equity attributable to owners of the parent decreased from **US$534,311 thousand** to **US$480,365 thousand**, primarily due to a loss for the period of **US$59,242 thousand** and settlement of share award schemes, partially offset by increased exchange translation reserves and equity-settled share award schemes Interim Condensed Consolidated Statement of Changes in Equity Summary (US$ thousand) | Metric | As of January 1, 2025 | Loss for the period | Exchange differences on translating foreign operations | Equity-settled share award scheme | Settlement of share award scheme | Dividends declared by subsidiaries | Acquisition of non-controlling interests | As of June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Attributable to Owners of the Parent | 534,311 | (59,242) | 4,399 | 897 | – | – | – | 480,365 | | Non-controlling Interests | 157,862 | 5,503 | 389 | 37 | – | (5,116) | (1) | 158,674 | | **Total Equity** | **692,173** | **(53,739)** | **4,788** | **934** | **–** | **(5,116)** | **(1)** | **639,039** | - Treasury shares changed from (**US$30,103 thousand**) to (**US$12,812 thousand**), and share award reserve from (**US$4,820 thousand**) to **US$897 thousand**[150](index=150&type=chunk) [Interim Condensed Consolidated Statement of Cash Flows](index=48&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) [Cash Flow Overview](index=48&type=section&id=Cash%20Flow%20Overview) For the six months ended **June 30, 2025**, net cash flow from operating activities was **US$61,397 thousand**, from investing activities **US$4,793 thousand**, and from financing activities **US$23,384 thousand**, resulting in a net increase in cash and cash equivalents of **US$89,574 thousand**, with an ending balance of **US$452,014 thousand** Interim Condensed Consolidated Statement of Cash Flows Summary (US$ thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net cash flows from operating activities | 61,397 | 79,299 | | Net cash flows from investing activities | 4,793 | (22,998) | | Net cash flows from financing activities | 23,384 | (10,265) | | Net increase in cash and cash equivalents | 89,574 | 46,036 | | Cash and cash equivalents at end of period | 452,014 | 362,308 | - Net cash flow from operating activities decreased, primarily due to loss before tax and other adjusting items[156](index=156&type=chunk) - Cash flow from investing activities shifted from a net outflow to a net inflow, mainly due to proceeds from disposal of a subsidiary of **US$9,065 thousand**[157](index=157&type=chunk) - Cash flow from financing activities shifted from a net outflow to a net inflow, primarily due to new bank borrowings of **US$48,815 thousand**[157](index=157&type=chunk) [Notes to the Interim Condensed Consolidated Financial Information](index=51&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) [1. Basis of Preparation](index=51&type=section&id=1.%20Basis%20of%20Preparation) The interim condensed consolidated financial information is prepared in accordance with IAS 34 'Interim Financial Reporting' and should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2024 - The interim condensed consolidated financial information is prepared in accordance with **IAS 34 'Interim Financial Reporting'**[160](index=160&type=chunk) - The information does not include all disclosures required for annual financial statements and should therefore be read in conjunction with the Group's annual consolidated financial statements for the year ended **December 31, 2024**[160](index=160&type=chunk) [2. Changes in Accounting Policies and Disclosures](index=51&type=section&id=2.%20Changes%20in%20Accounting%20Policies%20and%20Disclosures) The accounting policies adopted for the interim condensed consolidated financial information are consistent with those applied in the annual consolidated financial statements, except for the initial adoption of amended IAS 21 'Lack of Exchangeability', which had no impact on the Group's financial information - The accounting policies adopted for the interim condensed consolidated financial information are consistent with those applied in the annual consolidated financial statements for the year ended **December 31, 2024**, except for the initial adoption of amended IAS 21 'Lack of Exchangeability'[161](index=161&type=chunk)[162](index=162&type=chunk) - As the currencies in which the Group transacts and the functional currencies of the Group entities translated into the Group's presentation currency are all convertible, these amendments had no impact on the interim condensed consolidated financial information[162](index=162&type=chunk) [3. Operating Segment Information](index=52&type=section&id=3.%20Operating%20Segment%20Information) The Group's operations are segmented into two reportable operating segments, Joyoung and SharkNinja Asia Pacific, with management independently monitoring their performance; SharkNinja Asia Pacific showed significant revenue growth, but segment results for both declined - The Group has two reportable operating segments: **Joyoung segment** (Mainland China kitchen small appliances) and **SharkNinja Asia Pacific segment** (Asia Pacific cleaning, kitchen, personal care, and home environment appliances)[164](index=164&type=chunk)[165](

浙江同源康醫藥股份有限公司 TYK Medicines, Inc 股份代號 : 2410 2025 中期報告 浙江同源康醫藥股份有限公司 目錄 公司資料 董事 2 公司資料 4 財務摘要 5 業務摘要 7 管理層討論及分析 23 企業管治及其他資料 35 中期簡明綜合損益及其他全面收入表 36 中期簡明綜合財務狀況表 38 中期簡明綜合權益變動表 39 中期簡明綜合現金流量表 41 中期簡明綜合財務資料附註 57 定義 2025 年中期報告 2 執行董事： 吳豫生博士 （董事長兼總裁） 非執行董事： 李鈞博士 顧虹博士 蔣鳴昱博士 孟曉英博士 （於2025年8月31日辭任） 何超先生 朱向陽博士 （於2025年6月26日獲委任） 獨立非執行董事： 冷瑜婷博士 （主席） 吳豫生博士 張森泉先生 （於2025年9月15日辭任） 提名委員會 吳豫生博士 （主席） 張森泉先生 （於2025年9月15日辭任） 冷瑜婷博士 科學委員會 吳豫生博士 （主席） 李鈞博士 許文青博士 張森泉先生 （於2025年9月15日辭任） 冷瑜婷博士 許文青博士 沈秀華博士 監事 牛成山博士 梁阿朋博士 尚靜女士 審計委員會 張森泉先生 ...