Financial Performance - For the six months ended June 30, 2025, the company reported revenue of RMB 183,368 thousand, a decrease of 45% compared to RMB 333,120 thousand in the same period last year[5]. - Operating profit for the same period was RMB 15,014 thousand, down 28% from RMB 20,863 thousand year-on-year[5]. - Profit attributable to equity shareholders increased by 10% to RMB 32,948 thousand, compared to RMB 29,879 thousand in the previous year[5]. - The basic and diluted earnings per share rose by 9% to RMB 0.071 from RMB 0.065[5]. - Revenue from television media resource operations decreased by 48% to RMB 91,486 thousand, down from RMB 176,511 thousand[5]. - Digital marketing and online media revenue fell by 56% to RMB 41,944 thousand, compared to RMB 95,550 thousand in the previous year[5]. - Gross profit for the same period is RMB 52,615 thousand, a decline of 25.4% compared to RMB 70,523 thousand in 2024[27]. - Net profit for the period is RMB 33,093 thousand, an increase of 11.5% from RMB 29,797 thousand in 2024[27]. - Total customer contract revenue for the six months ended June 30, 2025, was RMB 169,785 thousand, a decrease of 46% compared to RMB 315,792 thousand for the same period in 2024[47]. Cash Flow and Assets - Net cash inflow from operating activities was RMB 51,496 thousand, down from RMB 88,020 thousand year-on-year[22]. - Cash and cash equivalents increased to RMB 449,780 thousand from RMB 217,422 thousand at the end of the previous year[18]. - The company declared dividends amounting to RMB 149,920 thousand during the period, which is a significant cash outflow impacting retained earnings[36]. - The net cash from investing activities significantly increased to RMB 168,471 thousand, compared to RMB 9,168 thousand in the prior year, primarily due to a reduction in cash used for purchasing equity securities[40]. - The total accounts receivable, net of loss provisions, was RMB 148,971,000 as of June 30, 2025, compared to RMB 126,405,000 as of December 31, 2024, reflecting an increase of approximately 17.9%[62]. - The total accounts payable as of June 30, 2025, was RMB 51,182,000, significantly higher than RMB 24,195,000 as of December 31, 2024, indicating a growth of approximately 111.5%[66]. - The company’s cash and cash equivalents reached RMB 449,780,000 as of June 30, 2025, compared to RMB 217,422,000 as of December 31, 2024, showing a significant increase[65]. Operational Strategy - The company aims to enhance its brand marketing capabilities by focusing on cross-screen creative communication services[7]. - The company is actively exploring artificial intelligence algorithms to optimize advertising strategies and improve efficiency[11]. - The company continues to provide integrated communication services to notable clients, including China Feihe and China Ping An, while expanding its international business[10]. - The company plans to enhance operational efficiency and strengthen its core competitiveness in creative communication and brand strategy amidst a competitive advertising industry[24]. - The company continues to focus on television advertising, creative content production, and digital marketing services as its primary business segments[46]. Shareholder Information - As of June 30, 2025, Liu Jinlan holds 262,122,169 shares, representing approximately 55.72% of the company's issued share capital[80]. - Chen Xin owns 258,469,165 shares, accounting for about 54.94% of the company's issued share capital[80]. - Major shareholder Tricor Equity Trustee Limited holds 309,608,821 shares, representing 65.81% of the issued shares[90]. - CLH Holding Limited owns 210,982,513 shares, accounting for 44.85% of the issued shares[90]. Corporate Governance - The company has complied with all provisions of the corporate governance code, except for the absence of the remuneration committee chair at the annual general meeting due to prior commitments[96]. - The audit committee, along with the management, reviewed the unaudited consolidated financial statements for the six months ending June 30, 2025[98].

[Company Information](index=3&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) [Board of Directors](index=3&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83) The Board of Directors comprises executive, independent non-executive, and alternate directors, with established audit, remuneration, and nomination committees to ensure robust corporate governance - The Board members include executive directors such as **Kwok Chi Leung** (Chairman), **Kwok Chi Hang** (Vice Chairman and CEO), **Kwok Chi Piu**, **Kwok Chi Yat**, and independent non-executive directors like **Tam Wai Chu**, **Leung Wing Ning**, **Nicholas James Debnam**, and **Choi Siu Ting** (newly appointed)[5](index=5&type=chunk) - Audit, Remuneration, and Nomination Committees are established, each chaired by an independent non-executive director[5](index=5&type=chunk) - **Kwok Wing Ching**, **Kwok Wing Tai**, **Kwok Wing Kei**, and **Kwok Wing Sin** were appointed as alternate directors on January 1, 2025[5](index=5&type=chunk) [Key Professional Advisors and Offices](index=4&type=section&id=%E4%B8%BB%E8%A6%81%E5%B0%88%E6%A5%AD%E9%A1%A7%E5%95%8F%E5%8F%8A%E8%BE%A6%E4%BA%8B%E8%99%95) The company's auditor is KPMG, the company secretary is Mr. Sin Ka Tim, and the principal office is located at 7/F, Wing On Centre, 211 Des Voeux Road Central, Hong Kong - The auditor is **KPMG**, a registered Public Interest Entity Auditor[7](index=7&type=chunk) - The company secretary is **Mr. Sin Ka Tim**, and the principal office is at 7/F, Wing On Centre, 211 Des Voeux Road Central, Hong Kong[7](index=7&type=chunk)[8](index=8&type=chunk) - The share registrar and transfer office is **Tricor Investor Services Limited**[8](index=8&type=chunk) [Chairman's Statement](index=5&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E4%B8%BB%E5%B8%AD%E8%87%B4%E8%A9%9E) [Interim Results and Dividends](index=5&type=section&id=%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%8F%8A%E8%82%A1%E6%81%AF) For the six months ended June 30, 2025, group revenue decreased by **13.3%** to **HKD 416.2 million**, primarily due to reduced department store and property investment income; despite a **HKD 150.3 million** loss attributable to shareholders, adjusted underlying profit grew **27.2%** to **HKD 321.2 million** excluding investment property revaluation losses, and the board declared an increased interim dividend of **43 HK cents** per share Key Financial Performance for H1 2025 | Indicator | H1 2025 (Million HKD) | H1 2024 (Million HKD) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 416.2 | 480.0 | -13.3% | | Loss Attributable to Shareholders | (150.3) | (239.6) | -37.3% | | Investment Portfolio Income | 219.8 | 127.8 | +72.0% | | Net Loss from Investment Property Revaluation | (470.5) | (515.8) | -8.7% | | Underlying Profit Attributable to Shareholders (Adjusted) | 321.2 | 252.6 | +27.2% | | Loss Per Share | (51.9) HK cents | (82.5) HK cents | -37.1% | | Basic Earnings Per Share (Adjusted) | 111.0 HK cents | 87.0 HK cents | +27.6% | | Interim Dividend Per Share | 43 HK cents | 32 HK cents | +34.4% | - The decrease in revenue was primarily due to reduced income from the department store business and property investment[10](index=10&type=chunk) - The reduction in loss was mainly attributable to a significant increase in investment portfolio income[10](index=10&type=chunk) [Liquidity and Financial Resources](index=6&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) As of June 30, 2025, the Group's shareholders' equity slightly decreased, but cash and listed marketable securities increased, total borrowings rose marginally, and the gearing ratio remained stable, indicating ample liquidity and prudent financial policies Overview of Liquidity and Financial Resources | Indicator | June 30, 2025 (Million HKD) | Dec 31, 2024 (Million HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Shareholders' Equity | 16,728.4 | 16,833.2 | -0.6% | | Cash and Listed Marketable Securities | 3,624.3 | 3,256.7 | +11.3% | | Total Borrowings | 65.0 | 59.3 | +9.6% | | Gearing Ratio | 0.4% | 0.4% | 0.0% | | Total Capital Commitments | 26.8 | 58.1 | -53.9% | - The Group possesses **ample liquidity** to meet its current commitments and working capital needs[12](index=12&type=chunk) - Total borrowings consisted of a one-year Japanese Yen loan, which was fully repaid on July 28, 2025[13](index=13&type=chunk) - The Group adopts **prudent financing and financial policies**, with foreign exchange fluctuations primarily arising from net investments in subsidiaries outside Hong Kong[15](index=15&type=chunk) [Half-Year Performance Review](index=6&type=section&id=%E5%8D%8A%E5%B9%B4%E6%A5%AD%E7%B8%BE%E5%9B%9E%E9%A1%A7) In H1 2025, department store revenue declined due to reduced customer traffic and spending, resulting in an operating loss; property investment income also decreased, though Australian properties are undergoing upgrades; associate's auto dealership losses narrowed, while investment portfolio income significantly grew, and foreign exchange recorded a net gain [Department Store Business](index=6&type=section&id=%E7%99%BE%E8%B2%A8%E6%A5%AD%E5%8B%99) Hong Kong's retail sector faces ongoing challenges from overseas travel, cross-border shopping, and mainland e-commerce, leading to a **14.5%** revenue decrease to **HKD 232.8 million** and an operating loss of **HKD 38.5 million** for the department store business, despite completed renovations and ongoing merchandise adjustments - Hong Kong's retail sector faces **ongoing challenges**, including increased overseas travel, cross-border shopping, and competition from mainland e-commerce[17](index=17&type=chunk) Department Store Business Performance | Indicator | H1 2025 (Million HKD) | H1 2024 (Million HKD) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 232.8 | 272.2 | -14.5% | | Operating Loss | (38.5) | (27.0) | +42.6% | - Renovation of the Nathan Road Wing On Plus branch has been completed, and efforts are underway to **adjust the merchandise mix** to meet customer demand[18](index=18&type=chunk) [Property Investment](index=7&type=section&id=%E7%89%A9%E6%A5%AD%E6%8A%95%E8%B3%87) Property investment income decreased to **HKD 158.8 million**, with Hong Kong commercial properties seeing a **13.2%** net income reduction due to lower rents and average occupancy, while Australian Melbourne commercial office net income fell **28.4%** to **76%** occupancy, prompting a feasibility study for building facility upgrades Property Investment Income and Occupancy Rate | Indicator | H1 2025 (Million HKD) | H1 2024 (Million HKD) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Property Investment Income | 158.8 | 192.5 | -17.5% | | Hong Kong Commercial Property Net Income | 124.8 | 143.8 | -13.2% | | Hong Kong Commercial Property Occupancy Rate | 89% (June 30, 2025) | 91% (June 30, 2024) | -2% | | Australia Melbourne Property Net Income | 35.5 | 49.6 | -28.4% | | Australia Melbourne Property Occupancy Rate | 76% (June 30, 2025) | 85% (June 30, 2024) | -9% | - Hong Kong property income decreased primarily due to **lower rents** upon new and renewed leases and a **decline in average occupancy rate**[19](index=19&type=chunk) - The Group is conducting a feasibility study for building facility upgrades at its 333 Collins Street commercial office property in Melbourne, Australia, with concept design expected to be finalized by the **end of 2025**[19](index=19&type=chunk) [Interests in an Associate](index=8&type=section&id=%E6%96%BC%E4%B8%80%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E6%AC%8A%E7%9B%8A) The Group's share of post-tax loss from an associate, primarily a Chinese auto dealership business, narrowed significantly to **HKD 2.4 million** compared to the prior period Share of Post-Tax Loss from an Associate | Indicator | H1 2025 (Million HKD) | H1 2024 (Million HKD) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Share of Post-Tax Loss from an Associate | (2.4) | (12.6) | -80.9% | | Of which: Auto Dealership Business Loss | (4.7) | (16.2) | -71.0% | [Others](index=8&type=section&id=%E5%85%B6%E4%BB%96) The Group's investment portfolio value increased to **HKD 2,355.6 million**, generating **HKD 219.8 million** in income primarily from fair value re-measurement and disposal of securities held for trading, while foreign currency exchange recorded a net gain of **HKD 16.0 million**, and employee numbers slightly decreased Investment Portfolio and Foreign Currency Exchange | Indicator | June 30, 2025 (Million HKD) | Dec 31, 2024 (Million HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Total Investment Portfolio Value | 2,355.6 | 2,208.6 | +6.6% | | Investment Portfolio Income (H1) | 219.8 | 127.8 | +72.0% | | Net Foreign Currency Exchange Gain/(Loss) (H1) | 16.0 | (2.7) | N/A (Turned from loss to gain) | - As of June 30, 2025, the Group had **517 employees**, a decrease from **531** as of December 31, 2024[22](index=22&type=chunk) [Outlook for the Remainder of 2025](index=8&type=section&id=2025%E5%B9%B4%E9%A4%98%E4%B8%8B%E5%B1%95%E6%9C%9B) The Group anticipates continued intense competition and weak consumer confidence for its department store business in the latter half of 2025, focusing on cost control and merchandise adjustments, while investment properties are expected to generate rental income despite a soft leasing market, confident in its robust financial position to navigate future challenges - The department store business is expected to continue facing **intense competition** and **weak consumer confidence** for the remainder of 2025[23](index=23&type=chunk) - The Group will strive to **control operating expenses** and **adjust its merchandise mix** to cater to customer preferences[23](index=23&type=chunk) - Investment properties in Hong Kong and Melbourne are expected to continue generating rental income, despite a **persistently weak leasing market**[23](index=23&type=chunk) - The Group is confident in its **robust financial position** to meet future challenges[23](index=23&type=chunk) [Independent Review Report](index=9&type=section&id=%E7%8D%A8%E7%AB%8B%E5%AF%A9%E9%96%B1%E5%A0%B1%E5%91%8A) KPMG reviewed Wing On International Holdings Limited's interim financial report for the six months ended June 30, 2025, under Hong Kong Standard on Review Engagements 2410; the review, being less extensive than an audit, did not result in an audit opinion, but found no material non-compliance with HKAS 34 - **KPMG** has reviewed the interim financial report in accordance with **Hong Kong Standard on Review Engagements 2410**[26](index=26&type=chunk) - The scope of the review is less than that of an audit, and therefore **no audit opinion is expressed**[26](index=26&type=chunk) - The conclusion is that nothing has come to their attention that causes them to believe the interim financial report is not prepared, in all material respects, in accordance with **Hong Kong Accounting Standard 34**[27](index=27&type=chunk) [Unaudited Consolidated Income Statement](index=10&type=section&id=%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8%EF%BC%8D%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8) For the six months ended June 30, 2025, the Group's revenue was **HKD 416.2 million**, a decrease from the prior period, resulting in a loss of **HKD 149.2 million** for the period and a loss attributable to shareholders of **HKD 150.3 million**, with basic and diluted loss per share at **51.9 HK cents** Key Data from Consolidated Income Statement | Indicator | H1 2025 (Thousand HKD) | H1 2024 (Thousand HKD) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 416,238 | 479,998 | -13.3% | | Other Income | 60,331 | 76,987 | -21.6% | | Other Net Gains | 220,817 | 106,678 | +107.0% | | Operating Profit | 355,043 | 304,308 | +16.7% | | Net Loss from Investment Property Revaluation | (470,513) | (515,758) | -8.7% | | Loss Before Tax | (119,221) | (225,808) | -47.2% | | Loss for the Period | (149,165) | (242,859) | -38.6% | | Loss Attributable to Company's Shareholders | (150,288) | (239,576) | -37.3% | | Basic and Diluted Loss Per Share | (51.9) cents | (82.5) cents | -37.1% | [Unaudited Consolidated Statement of Comprehensive Income](index=11&type=section&id=%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8%EF%BC%8D%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8) For the six months ended June 30, 2025, the Group reported a loss of **HKD 149.2 million** for the period, but total comprehensive income for the period turned into a gain of **HKD 53.7 million** due to other comprehensive income, primarily from foreign currency translation adjustments of **HKD 202.8 million** Key Data from Consolidated Statement of Comprehensive Income | Indicator | H1 2025 (Thousand HKD) | H1 2024 (Thousand HKD) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Loss for the Period | (149,165) | (242,859) | -38.6% | | Other Investments at Fair Value Through Other Comprehensive Income | 6,300 | (742) | N/A (Turned from loss to gain) | | Foreign Currency Translation Adjustment | 196,527 | (83,576) | N/A (Turned from loss to gain) | | Other Comprehensive Income for the Period | 202,827 | (84,318) | N/A (Turned from loss to gain) | | Total Comprehensive Income for the Period | 53,662 | (327,177) | N/A (Turned from loss to gain) | | Total Comprehensive Income Attributable to Company's Shareholders | 52,259 | (323,886) | N/A (Turned from loss to gain) | - Foreign currency translation adjustment was the primary reason for the positive shift in other comprehensive income for the period, reflecting exchange differences arising from the translation of financial statements of subsidiaries outside Hong Kong[33](index=33&type=chunk) [Unaudited Consolidated Statement of Financial Position](index=12&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8%EF%BC%8D%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8) As of June 30, 2025, total assets slightly decreased to **HKD 18,146.4 million**, with investment properties remaining the largest component; current assets, including securities held for trading and cash, increased, while total liabilities rose, maintaining net assets at **HKD 16,754.9 million** Key Data from Consolidated Statement of Financial Position | Indicator | June 30, 2025 (Thousand HKD) | Dec 31, 2024 (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | **Non-Current Assets** | | | | | Investment Properties | 12,606,565 | 12,873,724 | -2.1% | | Interests in an Associate | 123,259 | 308,586 | -60.1% | | **Current Assets** | | | | | Securities Held for Trading | 2,355,572 | 2,208,591 | +6.6% | | Cash and Bank Balances | 2,410,507 | 2,079,994 | +15.9% | | **Current Liabilities** | | | | | Trade and Other Payables and Accruals | 423,270 | 296,782 | +42.6% | | Secured Bank Borrowings | 65,040 | 59,280 | +9.7% | | **Non-Current Liabilities** | | | | | Deferred Tax Liabilities | 833,438 | 783,040 | +6.4% | | **Equity** | | | | | Total Equity Attributable to Company's Shareholders | 16,728,405 | 16,833,232 | -0.6% | | Total Equity | 16,754,924 | 16,858,348 | -0.6% | - Investment property value decreased due to **net valuation losses**[36](index=36&type=chunk) - Interests in an associate significantly decreased, possibly related to **dividends and distributions from the associate**[36](index=36&type=chunk) - Net current assets increased to **HKD 4,397.9 million**, indicating **strong liquidity**[36](index=36&type=chunk) [Unaudited Consolidated Statement of Changes in Equity](index=14&type=section&id=%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E7%B5%90%E7%AE%97%E8%A1%A8%EF%BC%8D%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8) For the six months ended June 30, 2025, total equity attributable to company shareholders decreased from **HKD 16,833.2 million** to **HKD 16,728.4 million**, primarily due to a **HKD 150.3 million** loss for the period, partially offset by **HKD 202.5 million** in other comprehensive income (mainly from increased exchange reserves), with share repurchases and dividend payments also contributing to the reduction Changes in Equity Attributable to Company's Shareholders | Indicator | H1 2025 (Thousand HKD) | H1 2024 (Thousand HKD) | | :--- | :--- | :--- | | Total Equity Attributable to Company's Shareholders at Beginning of Period | 16,833,232 | 18,355,830 | | Loss for the Period | (150,288) | (239,576) | | Other Comprehensive Income for the Period | 202,547 | (84,310) | | Repurchase of Company's Shares (Total Price) | (3,782) | (4,507) | | Dividends Payable | (153,304) | (174,057) | | Total Equity Attributable to Company's Shareholders at End of Period | 16,728,405 | 17,853,380 | - Exchange reserves recorded a **positive change of HKD 196.2 million** in H1 2025, compared to a negative change in H1 2024[41](index=41&type=chunk)[43](index=43&type=chunk) - Retained profits decreased due to the **loss for the period**, share repurchase premium and transaction costs, and dividend payments[41](index=41&type=chunk) [Unaudited Condensed Consolidated Cash Flow Statement](index=17&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8%EF%BC%8D%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8) For the six months ended June 30, 2025, net cash from operating activities was **HKD 92.2 million**, while net cash from investing activities significantly increased to **HKD 495.6 million** due to associate dividends and reduced time deposits; net cash used in financing activities was an outflow of **HKD 13.7 million**, resulting in a net increase in cash and cash equivalents of **HKD 574.1 million** Key Data from Condensed Consolidated Cash Flow Statement | Indicator | H1 2025 (Thousand HKD) | H1 2024 (Thousand HKD) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Cash from Operating Activities | 92,163 | 75,519 | +22.0% | | Net Cash from Investing Activities | 495,636 | 51,373 | +864.8% | | Net Cash Used in Financing Activities | (13,696) | (14,469) | -5.4% | | Net Increase in Cash and Cash Equivalents | 574,103 | 112,423 | +410.7% | | Cash and Cash Equivalents at End of Period | 2,178,309 | 1,830,487 | +19.0% | - Net cash from investing activities significantly increased, primarily due to **HKD 185.1 million** received from associate dividends and distributions, and a **HKD 277.3 million** decrease in bank time deposits with maturities over three months at the time of deposit[48](index=48&type=chunk) - Cash was generated from operating activities after adjusting loss before tax for non-cash items such as net loss from investment property revaluation[48](index=48&type=chunk) [Notes to the Unaudited Interim Financial Report](index=18&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E9%99%84%E8%A8%BB) [Basis of Preparation](index=18&type=section&id=%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) This interim financial report is prepared in accordance with the **HKEX Listing Rules** and **HKAS 34 'Interim Financial Reporting'**, authorized for issue on August 26, 2025, and, though unaudited, has been reviewed by KPMG and the Company's Audit Committee - This interim financial report is prepared in accordance with the **Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited** and **Hong Kong Accounting Standard 34 'Interim Financial Reporting'**[49](index=49&type=chunk) - The report is unaudited but has been reviewed by **KPMG** in accordance with **Hong Kong Standard on Review Engagements 2410** and by the Company's Audit Committee[50](index=50&type=chunk) - The accounting policies adopted are consistent with those applied in the 2024 annual financial statements, except for changes in accounting policies expected to be reflected in the 2025 annual financial statements[49](index=49&type=chunk) [Changes in Accounting Policies](index=19&type=section&id=%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E8%AE%8A%E5%8B%95) Certain amendments to **HKFRS** issued by the **HKICPA** were first adopted in the current accounting period but had no significant impact on the interim financial report's results or financial position, and no new standards or interpretations not yet effective were adopted by the Group - Amendments to **Hong Kong Financial Reporting Standards** first adopted in the current accounting period had **no material impact** on the results or financial position for the current or prior periods[51](index=51&type=chunk) - The Group has **not adopted any new standards or interpretations** that are not yet effective in the current accounting period[52](index=52&type=chunk) [Revenue and Segment Reporting](index=19&type=section&id=%E6%94%B6%E5%85%A5%E5%8F%8A%E5%88%86%E9%83%A8%E5%A0%B1%E5%91%8A) The Group's primary businesses are department stores and property investment; for the six months ended June 30, 2025, total revenue was **HKD 416.2 million**, with **HKD 232.8 million** from department stores (which recorded a loss) and **HKD 183.5 million** from property investment (which recorded a profit) [Revenue](index=19&type=section&id=%E6%94%B6%E5%85%A5) Group revenue primarily stems from department store operations (goods sales, counter sales, consignment sales) and property investment (property management fees, rental-related income, investment property rentals), totaling **HKD 232.8 million** from department stores and **HKD 183.5 million** from property investment as of June 30, 2025 Revenue by Category | Revenue Category | H1 2025 (Thousand HKD) | H1 2024 (Thousand HKD) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Department Store Business | 232,758 | 272,204 | -14.5% | | Property Management Fees and Other Rental Related Income | 24,368 | 27,652 | -11.9% | | Investment Property Rental Income | 159,112 | 180,142 | -11.7% | | **Total Revenue** | **416,238** | **479,998** | **-13.3%** | [Segment Reporting](index=20&type=section&id=%E5%88%86%E9%83%A8%E5%A0%B1%E5%91%8A) The Group is managed and reported under two segments: department store business and property investment; as of June 30, 2025, the department store business recorded a loss of **HKD 38.5 million**, while property investment generated a profit of **HKD 158.8 million**, with property investment assets significantly larger than those of the department store business - The Group's two reportable segments are **Department Store Business** (operating department stores in Hong Kong) and **Property Investment** (leasing commercial properties)[56](index=56&type=chunk) Segment Performance Overview | Segment | H1 2025 Profit/(Loss) (Thousand HKD) | H1 2024 Profit/(Loss) (Thousand HKD) | | :--- | :--- | :--- | | Department Store Business | (38,514) | (27,041) | | Property Investment | 158,810 | 192,545 | | **Total Reportable Segment Profit** | **120,296** | **165,504** | Segment Assets Overview | Segment | June 30, 2025 Assets (Thousand HKD) | Dec 31, 2024 Assets (Thousand HKD) | | :--- | :--- | :--- | | Department Store Business | 225,655 | 219,570 | | Property Investment | 12,852,644 | 13,116,577 | | **Total Reportable Segment Assets** | **13,078,299** | **13,336,147** | [Other Income and Other Net Gains](index=23&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E5%85%B6%E4%BB%96%E6%B7%A8%E6%94%B6%E7%9B%8A) For the six months ended June 30, 2025, the Group's other income totaled **HKD 60.3 million**, mainly from bank deposit interest and securities investment dividends, while other net gains amounted to **HKD 220.8 million**, primarily driven by net gains from fair value re-measurement and disposal of securities held for trading, and foreign currency exchange net gains Analysis of Other Income | Income Category | H1 2025 (Thousand HKD) | H1 2024 (Thousand HKD) | | :--- | :--- | :--- | | Bank Deposit Interest Income | 38,896 | 49,882 | | Securities Investment Dividend Income | 13,331 | 15,619 | | Securities Investment Interest Income | 4,642 | 5,909 | | Others | 3,462 | 5,577 | | **Total** | **60,331** | **76,987** | Analysis of Other Net Gains | Gain Category | H1 2025 (Thousand HKD) | H1 2024 (Thousand HKD) | | :--- | :--- | :--- | | Net Gain from Fair Value Re-measurement of Securities Held for Trading | 158,238 | 79,129 | | Net Gain from Disposal of Securities Held for Trading | 46,773 | 30,214 | | Net Foreign Currency Exchange Gain/(Loss) | 16,008 | (2,655) | | Net Loss from Disposal of Machinery and Equipment | (202) | (10) | | **Total** | **220,817** | **106,678** | - Gains from re-measurement and disposal of securities held for trading were the primary drivers of the significant increase in other net gains[63](index=63&type=chunk) [Loss Before Tax](index=24&type=section&id=%E9%99%A4%E7%A8%85%E5%89%8D%E虧%E6%90%8D) For the six months ended June 30, 2025, the Group's loss before tax was **HKD 119.2 million**, with finance costs primarily comprising interest on lease liabilities and secured bank borrowings, net rental income from investment properties at **HKD 128.2 million**, and other operating expenses including staff costs, depreciation, and directors' emoluments Components of Loss Before Tax | Item | H1 2025 (Thousand HKD) | H1 2024 (Thousand HKD) | | :--- | :--- | :--- | | Finance Costs | 1,313 | 1,792 | | Net Rental Income from Investment Properties | (128,156) | (154,628) | | Staff Costs (Excluding Directors' Emoluments) | 99,896 | 97,478 | | Depreciation (Owned Machinery and Equipment) | 8,654 | 5,833 | | Depreciation (Right-of-Use Assets) | 16,552 | 21,531 | | Directors' Emoluments | 14,483 | 14,663 | | Cost of Sales | 106,885 | 122,594 | - Staff costs (excluding directors' emoluments) slightly increased, while **cost of sales decreased**[64](index=64&type=chunk) [Income Tax in Consolidated Income Statement](index=25&type=section&id=%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8%E5%85%A7%E4%B9%8B%E6%89%80%E5%BE%97%E7%A8%85) For the six months ended June 30, 2025, total income tax expense was **HKD 29.9 million**, an increase from the prior period, with Hong Kong profits tax provision at **16.5%** (two-tiered rates for some subsidiaries) and overseas taxes at local rates, while deferred tax was primarily impacted by fair value changes in investment properties Analysis of Income Tax Expense | Tax Category | H1 2025 (Thousand HKD) | H1 2024 (Thousand HKD) | | :--- | :--- | :--- | | Current Tax – Hong Kong Profits Tax | 18,028 | 22,221 | | Current Tax – Outside Hong Kong | 6,575 | 11,990 | | Deferred Tax (Investment Property Fair Value Change) | (35) | (20,167) | | Deferred Tax (Other Temporary Differences) | 5,376 | 3,007 | | **Total Income Tax Expense** | **29,944** | **17,051** | - Hong Kong profits tax provision is calculated at **16.5%**, with a two-tiered profits tax rate system applicable to certain subsidiaries[65](index=65&type=chunk) - Deferred tax arose from changes in the fair value of investment properties, showing a **negative amount** in the current period compared to a positive amount in the prior period[65](index=65&type=chunk) [Basic and Diluted Loss Per Share](index=25&type=section&id=%E6%AF%8F%E8%82%A1%E5%9F%BA%E6%9C%AC%E5%8F%8A%E6%94%A4%E8%96%84%E虧%E6%90%8D) For the six months ended June 30, 2025, basic loss per share was **51.9 HK cents**; however, adjusted basic earnings per share, excluding the impact of net loss from investment property revaluation and related deferred tax, increased to **111.0 HK cents**, with no dilutive potential shares during the period Basic and Diluted Loss/Earnings Per Share | Indicator | H1 2025 (Thousand HKD) | Per Share (cents) | H1 2024 (Thousand HKD) | Per Share (cents) | | :--- | :--- | :--- | :--- | :--- | | Loss Attributable to Company's Shareholders | (150,288) | (51.9) | (239,576) | (82.5) | | Add: Net Loss from Investment Property Revaluation | 470,513 | 162.6 | 515,758 | 177.7 | | Less: Decrease in Related Deferred Tax Liabilities | (35) | (0.0) | (20,167) | (7.0) | | Add/(Less): Investment Property Revaluation Gain/(Loss) Attributable to Non-Controlling Interests Net of Related Deferred Tax | 1,009 | 0.3 | (3,403) | (1.2) | | **Basic Earnings Attributable to Company's Shareholders** | **321,199** | **111.0** | **252,612** | **87.0** | - Basic loss per share is calculated based on the weighted average number of **289,349,000 shares** outstanding during the period[67](index=67&type=chunk) - Adjusted basic earnings per share significantly increased, reflecting improved underlying business performance after excluding investment property valuation fluctuations[68](index=68&type=chunk) [Investment Properties](index=27&type=section&id=%E6%8A%95%E8%B3%87%E7%89%A9%E6%A5%AD) As of June 30, 2025, investment properties recorded a net valuation loss of **HKD 470.5 million**, recognized in the consolidated income statement; Australian properties were revalued by a registered valuer, while Hong Kong and US properties were adjusted by directors based on market updates, with total future irreducible operating lease receivables amounting to **HKD 681.8 million** - As of June 30, 2025, investment properties recorded a **net valuation loss of HKD 470.5 million**, which has been recognized in the consolidated income statement[69](index=69&type=chunk) - Australian investment properties were revalued by **M3 Property Australia Pty. Ltd.**, a registered valuer, while Hong Kong and US properties were adjusted by directors with reference to market updates from independent surveyors[69](index=69&type=chunk) Total Future Undiscounted Operating Lease Receivables from Irrevocable Operating Leases | Term | June 30, 2025 (Thousand HKD) | Dec 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Within 1 year | 295,501 | 285,984 | | After 1 year but within 2 years | 187,782 | 210,678 | | After 2 years but within 3 years | 79,254 | 110,206 | | After 3 years but within 4 years | 37,079 | 33,903 | | After 4 years but within 5 years | 20,001 | 18,040 | | After 5 years | 62,160 | 30,996 | | **Total** | **681,777** | **689,807** | [Interests in an Associate](index=28&type=section&id=%E6%96%BC%E4%B8%80%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E6%AC%8A%E7%9B%8A) As of June 30, 2025, the Group's interests in an associate amounted to **HKD 123.3 million**, a significant decrease from December 31, 2024, with **HKD 185.1 million** in dividends and distributions received from the associate during the period Interests in an Associate | Indicator | June 30, 2025 (Thousand HKD) | Dec 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Unlisted Shares | 123,259 | 308,586 | | Of which: Share of Net Assets (Excluding Intangible Assets) | 119,782 | 304,898 | | Of which: Share of Intangible Assets | 3,477 | 3,688 | | **Total** | **123,259** | **308,586** | - For the six months ended June 30, 2025, the Group received **HKD 185,069,000** in dividends and distributions from the associate (2024: nil)[71](index=71&type=chunk) [Trade and Other Receivables, Deposits and Prepayments](index=28&type=section&id=%E6%87%89%E6%94%B6%E8%B3%87%E9%A0%85%E3%80%81%E5%AE%9A%E9%87%91%E5%8F%8A%E9%A0%90%E4%BB%98%E8%B3%87%E6%AC%BE) As of June 30, 2025, total trade and other receivables, deposits, and prepayments amounted to **HKD 84.5 million**, with the current portion at **HKD 72.1 million**; trade receivables (net of loss allowance) were **HKD 10.3 million**, mostly not overdue or overdue by less than one month Trade and Other Receivables, Deposits and Prepayments | Category | June 30, 2025 (Thousand HKD) | Dec 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Trade Receivables (Net of Loss Allowance) | 10,312 | 11,276 | | Other Receivables | 18,144 | 13,692 | | Deposits and Prepayments | 56,065 | 38,370 | | **Total** | **84,521** | **63,338** | | Non-Current Portion | 12,400 | 5,840 | | Current Portion | 72,121 | 57,498 | Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (Thousand HKD) | Dec 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Due (Not Overdue) or Overdue Less Than 1 Month | 9,728 | 10,750 | | Overdue 1 to 3 Months | 151 | 265 | | Overdue More Than 3 Months but Less Than 12 Months | 433 | 261 | | **Total** | **10,312** | **11,276** | - The non-current portion of prepayments represents advance payments for the purchase of other property, plant and equipment[73](index=73&type=chunk) [Cash and Bank Balances](index=29&type=section&id=%E7%8F%BE%E9%87%91%E5%8F%8A%E9%8A%80%E8%A1%8C%E7%B5%90%E9%A4%98) As of June 30, 2025, the Group's total cash and bank balances increased to **HKD 2,410.5 million** from December 31, 2024, with a significant increase in bank time deposits maturing within three months at the time of deposit, and a decrease in those maturing beyond three months Composition of Cash and Bank Balances | Category | June 30, 2025 (Thousand HKD) | Dec 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Bank Deposits and Cash | 409,878 | 437,373 | | Secured Bank Balances | 40,456 | 56,858 | | Bank Time Deposits – Maturing Within 3 Months at Deposit Date | 1,768,431 | 1,136,894 | | Bank Time Deposits – Maturing Over 3 Months at Deposit Date | 191,742 | 448,869 | | **Cash and Bank Balances in Consolidated Statement of Financial Position** | **2,410,507** | **2,079,994** | | **Cash and Cash Equivalents in Condensed Consolidated Cash Flow Statement** | **2,178,309** | **1,574,267** | - Net increase in cash and cash equivalents of **HKD 574.1 million** reflects **sound liquidity management**[48](index=48&type=chunk)[75](index=75&type=chunk) [Trade and Other Payables and Accruals](index=30&type=section&id=%E6%87%89%E4%BB%98%E8%B3%87%E9%A0%85%E5%8F%8A%E6%87%89%E8%A8%88%E8%B2%BB%E7%94%A8) As of June 30, 2025, total trade and other payables and accruals significantly increased to **HKD 423.3 million** from December 31, 2024, with trade and other payables at **HKD 369.4 million**, most of which were not yet due or overdue by less than one month, and the Group's credit period typically ranges from 30 to 90 days Trade and Other Payables and Accruals | Category | June 30, 2025 (Thousand HKD) | Dec 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Trade and Other Payables | 369,371 | 246,574 | | Accruals | 53,899 | 50,208 | | **Total** | **423,270** | **296,782** | Ageing Analysis of Trade and Other Payables | Ageing | June 30, 2025 (Thousand HKD) | Dec 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Not Yet Due | 181,072 | 196,597 | | Current or Overdue Less Than 1 Month | 187,626 | 47,103 | | Overdue 1 to 3 Months | 200 | 2,636 | | Overdue More Than 3 Months but Less Than 12 Months | 305 | 76 | | Overdue More Than 12 Months | 168 | 162 | | **Total** | **369,371** | **246,574** | - The credit period granted to the Group typically ranges from **30 to 90 days** from the invoice date[77](index=77&type=chunk) [Capital, Reserves and Dividends](index=31&type=section&id=%E8%B3%87%E6%9C%AC%E3%80%81%E5%84%B2%E5%82%99%E5%8F%8A%E8%82%A1%E6%81%AF) The Board declared an interim dividend of **43 HK cents** per share, totaling **HKD 124.4 million**; during the period, the company repurchased and cancelled **322,000 shares** for a total of **HKD 3.767 million** to enhance net asset value and earnings per share Dividend Distribution | Dividend Type | H1 2025 (Thousand HKD) | H1 2024 (Thousand HKD) | | :--- | :--- | :--- | | Interim Dividends Payable to Company's Shareholders | 124,378 | 92,744 | | Dividends Relating to Prior Financial Year Approved and Payable During Interim Period | 153,304 | 174,057 | Details of Company's Share Repurchases (H1 2025) | Month | Number of Shares Repurchased | Total Price Paid (Thousand HKD) | Highest Price Paid Per Share (HKD) | Lowest Price Paid Per Share (HKD) | | :--- | :--- | :--- | :--- | :--- | | January 2025 | 129,000 | 1,520 | 11.80 | 11.78 | | February 2025 | 53,000 | 623 | 11.82 | 11.68 | | March 2025 | 59,000 | 692 | 11.72 | 11.70 | | April 2025 | 63,000 | 724 | 11.62 | 11.40 | | May 2025 | 18,000 | 208 | 11.56 | 11.56 | | **Total** | **322,000** | **3,767** | | | - Repurchased shares were cancelled upon repurchase, with the repurchase premium and transaction costs deducted from the retained profits account[80](index=80&type=chunk) [Fair Value Measurement of Financial Instruments](index=33&type=section&id=%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E5%85%AC%E5%B9%B3%E5%83%B9%E5%80%BC%E4%B9%8B%E8%A8%88%E9%87%8F) The Group's financial instruments are measured at fair value across three levels; as of June 30, 2025, other investments and securities held for trading are measured at fair value, with Level 2 primarily comprising investment funds and structured products, and Level 3 other investments valued using an adjusted net asset approach considering unobservable inputs like marketability, minority interest, and control premiums - Fair value measurements are categorized into **Level 1** (quoted prices in active markets), **Level 2** (observable inputs), and **Level 3** (significant unobservable inputs)[85](index=85&type=chunk) Recurring Fair Value Measurements | Asset | June 30, 2025 Fair Value (Thousand HKD) | Level 1 (Thousand HKD) | Level 2 (Thousand HKD) | Level 3 (Thousand HKD) | | :--- | :--- | :--- | :--- | :--- | | Other Investments | 126,525 | – | – | 126,525 | | Securities Held for Trading | 2,355,572 | 1,213,752 | 1,141,820 | – | - Level 2 securities held for trading include investment funds and structured products, with fair values derived from financial institution quotes and proprietary pricing models[86](index=86&type=chunk) - Level 3 other investments are valued using an **adjusted net asset approach**, considering unobservable inputs such as marketability discount rates, minority interest discount rates, and control premiums[86](index=86&type=chunk)[87](index=87&type=chunk) - Changes in unobservable inputs can impact other comprehensive income; for example, a **3% increase in the marketability discount rate** would lead to a **HKD 5,411 thousand reduction** in other comprehensive income[88](index=88&type=chunk) [Capital Commitments](index=37&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) As of June 30, 2025, the Group's total contracted capital expenditure amounted to **HKD 26.8 million**, primarily for investment properties and other property, plant and equipment, representing a significant decrease from December 31, 2024 Total Capital Commitments | Category | June 30, 2025 (Thousand HKD) | Dec 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Investment Properties | 26,435 | 34,244 | | Other Property, Plant and Equipment | 398 | 23,833 | | **Total** | **26,833** | **58,077** | - Total capital commitments significantly decreased, primarily due to **reduced capital expenditure** on other property, plant and equipment[91](index=91&type=chunk) [Significant Related Party Transactions](index=37&type=section&id=%E9%87%8D%E5%A4%A7%E6%9C%89%E9%97%9C%E9%80%A3%E4%BA%BA%E5%A3%AB%E4%BA%A4%E6%98%93) For the six months ended June 30, 2025, key management personnel emoluments totaled **HKD 28.2 million**; the Group engaged in various recurring transactions with fellow subsidiaries, including retail shop leases, office rentals, securities trading, and building and tenancy management services, all conducted on mutually agreed terms Key Management Personnel Emoluments | Emolument Category | H1 2025 (Thousand HKD) | H1 2024 (Thousand HKD) | | :--- | :--- | :--- | | Salaries and Other Short-Term Employee Benefits | 27,674 | 28,992 | | Defined Contribution Retirement Plan Contributions | 483 | 470 | | **Total** | **28,157** | **29,462** | - The Group engages in various leasing, securities trading, and management service transactions with **fellow subsidiaries**[95](index=95&type=chunk) - All amounts payable for related party transactions are determined based on **mutually agreed terms** between the Group and the respective companies[93](index=93&type=chunk) [Approval of Interim Financial Report](index=38&type=section&id=%E9%80%9A%E9%81%8E%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A) This interim financial report was approved by the Board of Directors on August 26, 2025 - This interim financial report was **approved by the Board of Directors** on August 26, 2025[94](index=94&type=chunk) [Additional Information](index=39&type=section&id=%E9%99%84%E5%8A%A0%E8%B3%87%E6%96%99) [Corporate Governance](index=39&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) For the six months ended June 30, 2025, the Company applied and complied with all applicable code provisions of the **Corporate Governance Code** as set out in Appendix C1 of the **HKEX Listing Rules** - The Company has applied and complied with all applicable code provisions of the **Corporate Governance Code**[96](index=96&type=chunk) [Directors' Securities Transactions](index=39&type=section&id=%E8%91%A3%E4%BA%8B%E7%9A%84%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93) The Company adopted the **Model Code for Securities Transactions by Directors of Listed Issuers** from Appendix C3 of the Listing Rules, and all directors confirmed compliance with this standard code for the six months ended June 30, 2025 - The Company has adopted the **Model Code for Securities Transactions by Directors of Listed Issuers** as its code of conduct for directors' securities transactions[97](index=97&type=chunk) - All directors have confirmed compliance with the standards set out in the Model Code for the six months ended June 30, 2025[97](index=97&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures](index=39&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E6%9C%80%E9%AB%98%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%93%A1%E6%96%BC%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E5%8F%8A%E5%82%B5%E6%AC%8A%E8%AD%89%E4%B8%AD%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) As of June 30, 2025, several directors held interests in the Company's ordinary shares, with **Dr. Kwok Chi Piu** and **Mr. Kwok Chi Yat** indirectly holding some interests through private companies; additionally, some directors held share interests in **Kee Wai Investment Company (BVI) Limited** and **Wing On Water & Fire (2011) Limited** Directors' Interests in the Company's Ordinary Shares | Director Name | Personal Interests (Shares) | Family Interests (Shares) | Corporate Interests (Shares) | Other Interests (Shares) | Total Interests (Shares) | % of Issued Voting Shares | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Kwok Chi Leung | 480,620 | – | – | – | 480,620 | 0.166 | | Kwok Chi Hang | 649,050 | – | – | – | 649,050 | 0.224 | | Kwok Chi Piu | 958,298 | 295,000 | 255,000 | – | 1,508,298 | 0.521 | | Kwok Chi Yat | 556,910 | – | 10,000 | – | 566,910 | 0.196 | | Leung Wing Ning | 10,000 | – | – | – | 10,000 | 0.003 | | Nicholas James Debnam | 15,000 | – | – | – | 15,000 | 0.005 | | Kwok Wing Ching | 30,000 | – | – | – | 30,000 | 0.010 | | Kwok Wing Tai | 30,000 | – | – | – | 30,000 | 0.010 | | Kwok Wing Kei | 40,000 | – | – | – | 40,000 | 0.014 | | Kwok Wing Sin | 40,000 | – | – | – | 40,000 | 0.014 | - **Dr. Kwok Chi Piu** and **Mr. Kwok Chi Yat** indirectly hold shares in the Company through controlled private companies[105](index=105&type=chunk) - **Kwok Chi Leung**, **Kwok Chi Hang**, **Kwok Chi Piu**, and **Kwok Chi Yat** collectively own **100%** of the voting rights in **Kee Wai Investment Company (BVI) Limited**[102](index=102&type=chunk) [Major Shareholders](index=41&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1) As of June 30, 2025, **Wing On International Group Limited**, **Wing On Corporate Management (BVI) Limited**, and **Kee Wai Investment Company (BVI) Limited** are considered major shareholders, each holding **180,545,138 ordinary shares**, representing **62.418%** of the Company's issued voting share capital Major Shareholders' Shareholdings | Name | Number of Ordinary Shares Held | % of Issued Voting Shares | | :--- | :--- | :--- | | Wing On International Group Limited | 180,545,138 | 62.418 | | Wing On Corporate Management (BVI) Limited | 180,545,138 | 62.418 | | Kee Wai Investment Company (BVI) Limited | 180,545,138 | 62.418 | - The shareholdings of the aforementioned shareholders involve **duplication**, and all are deemed to have interests in the relevant shares under the **Securities and Futures Ordinance**[108](index=108&type=chunk) [Purchase, Sale or Redemption of the Company's Shares](index=41&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%82%A1%E4%BB%BD) The Company repurchased and cancelled shares during the six months ended June 30, 2025, as detailed in Note 13(b) of the interim financial report, to enhance net asset value and earnings per share; no other purchases, sales, or redemptions of the Company's listed shares were made by the Company or its subsidiaries during the period - The Company repurchased its shares during the six months ended June 30, 2025, with details provided in **Note 13(b) of the interim financial report on page 30**[109](index=109&type=chunk) - The purpose of the repurchases was to **enhance the net asset value per share and earnings per share** of the Company's shares[109](index=109&type=chunk) - Except for the disclosed share repurchases, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed shares during the period[109](index=109&type=chunk)

2025 中期報告 2025 INTERIM REPORT Interim Report 2025 非執行董事 金國鑫先生 （董事會主席） （於2025年6月4日獲委任） 王文明先生 程錦雲先生 葉雲志先生 獨立非執行董事 許偉先生 何麗雲女士 徐 春 慧 女 士（於2025年6月4日獲委任） 王加威先生 中期報告 目 錄 | 公司資料 | 2 | | --- | --- | | 財務摘要 | 4 | | 管理層討論及分析 | 5 | | 其他資料 | 18 | | 綜合損益及其他全面收益表 | 28 | | 綜合財務狀況表 | 29 | | 綜合權益變動表 | 31 | | 簡明綜合現金流量表 | 32 | | 未經審核中期財務報告附註 | 33 | 公司資料 董 事 執行董事 陳祥標先生 （行政總裁） （於2025年6月4日獲委任） 郭 俊 先 生（於2025年6月4日獲委任） 徐亦先生 潘 海 鴻 先 生（於2025年5月14日辭任） 審核委員會 王加威先生 （主席） 許偉先生 何麗雲女士 薪酬委員會 何麗雲女士 （主席） 陳 祥 標 先 生（於2025年6月4日獲委任） 徐 春 慧 女 士（於2025 ...

Contents 目錄 | 2 | Corporate Information | 公司資料 | | --- | --- | --- | | 4 | Management Discussion and Analysis | 管理層討論及分析 | | 15 | Corporate Governance and Other Information | 企業管治及其他資料 | | 23 | Interim Condensed Consolidated Statement of | 中期簡明綜合損益及 | | | Profit or Loss and Other Comprehensive Income | 其他全面收益表 | | 24 | Interim Condensed Consolidated Statement of | 中期簡明綜合財務狀況表 | | | Financial Position | | | 26 | Interim Condensed Consolidated Statement of | 中期簡明綜合權益變動表 | | | Changes in Equity | | | 27 | Inte ...

[Financial Summary](index=3&type=section&id=Financial%20Summary) Huajin International Holdings Limited's financial performance significantly deteriorated in H1 2025, with revenue plummeting 77.1% year-on-year, shifting from profit to substantial loss, and basic loss per share reaching RMB 87.19 cents. The balance sheet also worsened, with net debt turning negative from net assets, and the debt-to-asset ratio increasing Key Financial Data for the Six Months Ended June 30, 2025 | Metric | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Revenue | 732.9 | 3,206.5 | -77.1% | | Gross (Loss) Profit | (540.2) | 94.2 | Not Applicable | | Gross (Loss) Profit Margin (%) | (73.7%) | 2.9% | | | (Loss) Profit Attributable to Owners of the Company | (523.1) | 16.9 | Not Applicable | | Net Loss Margin (%) | (71.4%) | 0.5% | | | Basic (Loss) Earnings Per Share (RMB cents) | (87.19) | 2.81 | | | Diluted (Loss) Earnings Per Share (RMB cents) | (87.19) | 2.81 | | | Sales Volume (tons) | 145,494 | 678,887 | -78.6% | | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 3,302.5 | 3,716.7 | -11.1% | | Net (Liabilities) Assets | (99.6) | 423.8 | Not Applicable | | Net (Liabilities) Assets Per Share (RMB) | (0.17) | 0.71 | Not Applicable | | Borrowings | 2,362.1 | 2,510.4 | -5.9% | | Gearing Ratio (%) | 71.5% | 67.5% | | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The company shifted from profit to a substantial loss in H1 2025, primarily due to a significant decline in revenue and a shift from gross profit to gross loss, while net finance costs decreased, but not enough to offset the operational deterioration Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the Six Months Ended June 30) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Revenue | 732,906 | 3,206,463 | -77.1% | | Cost of Sales | (1,273,119) | (3,112,274) | -59.1% | | Gross (Loss) Profit | (540,213) | 94,189 | Not Applicable | | Other Income, Other Gains and Losses (Net) | (2,122) | 24,510 | Not Applicable | | Selling Expenses | (13,829) | (16,844) | -17.9% | | Administrative Expenses | (31,972) | (36,941) | -13.5% | | (Loss) Profit Before Investment Income, Net Finance Costs and Tax | (588,136) | 64,914 | Not Applicable | | Investment Income | – | 6,055 | Not Applicable | | Net Finance Costs | (28,663) | (51,492) | -44.3% | | (Loss) Profit Before Tax | (616,799) | 19,477 | Not Applicable | | Income Tax Credit (Expense) | 93,651 | (2,592) | Not Applicable | | (Loss) Profit for the Period | (523,148) | 16,885 | Not Applicable | | (Loss) Profit for the Period Attributable to Owners of the Company | (523,148) | 16,885 | Not Applicable | | Basic (Loss) Earnings Per Share (RMB cents) | (87.19) | 2.81 | Not Applicable | [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's financial position deteriorated, with net current liabilities and net liabilities significantly increasing, total assets and liabilities decreasing, and net liabilities turning negative, indicating increased debt repayment pressure Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | **ASSETS** | | | | | Non-current Assets | 2,272,323 | 2,228,043 | +2.0% | | Current Assets | 1,030,213 | 1,488,609 | -30.8% | | **LIABILITIES** | | | | | Current Liabilities | 2,126,355 | 2,243,122 | -5.2% | | Non-current Liabilities | 1,275,821 | 1,049,768 | +21.5% | | **EQUITY** | | | | | (Deficit) Equity Attributable to Owners of the Company | (101,370) | 422,032 | Not Applicable | | Non-controlling Interests | 1,730 | 1,730 | 0.0% | | Total (Deficit) Equity | (99,640) | 423,762 | Not Applicable | | Net Current Liabilities | (1,096,142) | (754,513) | -45.3% | [Condensed Consolidated Statement of Changes in Equity](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, the company's total equity shifted from positive to negative, primarily due to a substantial loss of RMB 523.1 million during the period and reserve adjustments from lapsed share options - As of June 30, 2025, **equity attributable to owners of the Company** shifted from a positive **RMB 422,032 thousand** on December 31, 2024, to a negative **RMB (101,370) thousand**[13](index=13&type=chunk) - The **loss for the period** of **RMB (523,148) thousand** was the primary driver of the significant decrease in equity[13](index=13&type=chunk) - Other comprehensive expenses included exchange differences on translation of foreign operations of **RMB (254) thousand** and a decrease in share-based payment reserve due to lapsed share options of **RMB (3,976) thousand**, transferred to retained profits[13](index=13&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, operating cash flow shifted from net outflow to net inflow, investment cash outflow significantly decreased and turned into net inflow, but financing cash flow shifted from net inflow to net outflow, resulting in a net decrease in cash and cash equivalents Condensed Consolidated Statement of Cash Flows (For the Six Months Ended June 30) | Activity Type | 2025 (RMB thousand) | 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Net Cash From (Used In) Operating Activities | 113,605 | (603,779) | from net outflow to net inflow | | Net Cash From (Used In) Investing Activities | 37,238 | (396,883) | from net outflow to net inflow | | Net Cash (Used In) From Financing Activities | (180,836) | 954,332 | from net inflow to net outflow | | Net Decrease in Cash and Cash Equivalents | (29,993) | (46,330) | decrease narrowed | | Cash and Cash Equivalents at June 30 | 5,200 | 52,020 | significantly decreased | - Operating cash flow improvement was primarily due to **decreased inventories**, **reduced trade receivables**, and **increased contract liabilities**[14](index=14&type=chunk) - Investing cash flow shifted to a net inflow, mainly due to a significant **decrease in deposits paid for acquisition of property, plant and equipment** and an **increase in withdrawal of restricted bank deposits**[16](index=16&type=chunk) - Financing cash flow shifted to a net outflow, primarily due to **increased repayment of borrowings** and **decreased proceeds from new borrowings**[16](index=16&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section details the basis of preparation, accounting policies, composition, and reasons for changes in various financial data, including revenue, costs, assets, liabilities, equity, cash flows, and related party transactions, providing supplementary information for understanding the company's financial position and operating results [1. Basis of Preparation](index=10&type=section&id=1.%20Basis%20of%20Preparation) The Group's condensed consolidated financial statements are prepared in accordance with HKAS 34 and the Listing Rules. Despite current liabilities exceeding current assets and a net liability position, the Board believes the Group can continue as a going concern for at least the next twelve months - As of June 30, 2025, the Group's **current liabilities exceeded current assets by RMB 1,096,142 thousand**, and it recorded **net liabilities of RMB 99,640 thousand**[17](index=17&type=chunk) - The Board believes that, based on available bank facilities of approximately **RMB 2,855,235 thousand** (of which **RMB 1,208,877 thousand** remained unutilised) to meet operational needs and expected working capital, the Group will be able to continue as a going concern for at least the next twelve months[18](index=18&type=chunk) - All currently utilised financing facilities are expected to be renewed upon maturity, thus the condensed consolidated financial statements are prepared on a going concern basis[18](index=18&type=chunk)[19](index=19&type=chunk) [2. Accounting Policies](index=11&type=section&id=2.%20Accounting%20Policies) The condensed consolidated financial statements are prepared on a historical cost basis, and accounting policies are consistent with the prior year's financial statements, except for the application of revised HKFRS accounting standards. The application of new standards in this interim period had no significant impact on financial position and performance - The condensed consolidated financial statements are prepared on a **historical cost basis**, except for certain financial instruments measured at fair value where applicable[20](index=20&type=chunk) - The Group first applied revised HKFRS accounting standards issued by the HKICPA during the current interim period, including HKAS 21 (Amendment) Lack of Exchangeability[21](index=21&type=chunk) - The application of the revised HKFRS accounting standards did not have a significant impact on the Group's financial position and performance during the current and prior periods[22](index=22&type=chunk) [3. Revenue and Segment Information](index=12&type=section&id=3.%20Revenue%20and%20Segment%20Information) The Group primarily engages in the production and sale of cold-rolled and galvanized steel products, operating as a single segment. Revenue significantly decreased by 77.1% in H1 2025, mainly from the China market, with notable declines in both sales volume and average selling prices - The Group is primarily engaged in the production and sale of cold-rolled and galvanized steel products, and management considers there to be only **one operating segment**[23](index=23&type=chunk) Revenue by Type of Goods (For the Six Months Ended June 30) | Type of Goods | 2025 (RMB thousand) | 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Sales of cold-rolled steel products — steel bars and plates | 317,925 | 1,669,663 | -80.9% | | Sales of cold-rolled steel products — welded steel pipes | 23,111 | 67,910 | -66.0% | | Sales of galvanized steel products | 209,050 | 1,148,899 | -81.8% | | Sales of hot-rolled steel products and others | 182,820 | 319,991 | -42.8% | | **Total Revenue** | **732,906** | **3,206,463** | **-77.1%** | Revenue by Geographical Location of Customers (For the Six Months Ended June 30) | Geographical Location | 2025 (RMB thousand) | 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | China (including Hong Kong) | 730,331 | 3,173,171 | -77.0% | | Southeast Asia | 2,575 | 33,292 | -92.3% | | **Total Revenue** | **732,906** | **3,206,463** | **-77.1%** | [4. Finance Income and Costs](index=14&type=section&id=4.%20Finance%20Income%20and%20Costs) For the six months ended June 30, 2025, the Group's net finance costs significantly decreased by 44.3%, primarily due to lower interest expenses on borrowings, partly attributable to a reduction in borrowing rates Finance Income and Costs (For the Six Months Ended June 30) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Finance Costs | (29,472) | (53,216) | -44.5% | | Finance Income | 809 | 1,724 | -53.1% | | **Net Finance Costs** | **(28,663)** | **(51,492)** | **-44.3%** | - The decrease in interest expense on borrowings was partly due to a **lower general interest rate** for most borrowings for the six months ended June 30, 2025, compared to the same period in 2024 (**2.90% to 7.11% vs 3.10% to 7.11%**)[26](index=26&type=chunk) [5. Income Tax Credit (Expense)](index=14&type=section&id=5.%20Income%20Tax%20Credit%20(Expense)) For the six months ended June 30, 2025, the Group recorded an income tax credit of RMB 93.7 million, compared to an income tax expense in the prior period, primarily due to a significant increase in deferred tax credit Income Tax Credit (Expense) (For the Six Months Ended June 30) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Current tax expense — PRC Enterprise Income Tax | – | 3,398 | Not Applicable | | Deferred tax | (93,651) | (806) | Not Applicable | | **Income Tax Credit (Expense) for the Period** | **(93,651)** | **2,592** | **Not Applicable** | - A **deferred tax credit of RMB 93,651 thousand** was recorded in H1 2025, compared to a deferred tax expense of **RMB 806 thousand** in the corresponding period of 2024[27](index=27&type=chunk) [6. (Loss) Profit for the Period](index=15&type=section&id=6.%20(Loss)%20Profit%20for%20the%20Period) For the six months ended June 30, 2025, the Group shifted from a profit in the prior period to a substantial loss, primarily impacted by decreased revenue, increased gross loss, and changes in employee benefits and depreciation expenses Components of (Loss) Profit for the Period (For the Six Months Ended June 30) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Total employee benefits expense | 57,365 | 70,288 | -18.4% | | Depreciation of property, plant and equipment (net) | 4,244 | 7,128 | -40.5% | | Depreciation of right-of-use assets (net) | 2,513 | 2,587 | -2.9% | | Cost of inventories recognised as an expense | 1,273,119 | 3,112,274 | -59.1% | | Loss on disposal of property, plant and equipment | 4,780 | 139 | +3338.1% | - The **loss for the period attributable to owners of the Company** was **RMB 523,148 thousand**, compared to a profit of **RMB 16,885 thousand** in the prior period[8](index=8&type=chunk) [7. (Loss) Earnings Per Share](index=16&type=section&id=7.%20(Loss)%20Earnings%20Per%20Share) For the six months ended June 30, 2025, the company's basic and diluted earnings per share both shifted from positive in the prior period to a loss of RMB 87.19 cents per share, reflecting a significant decline in profitability (Loss) Earnings Per Share (For the Six Months Ended June 30) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | (Loss) Profit for the period attributable to owners of the Company for the purpose of calculating basic and diluted (loss) earnings per share | (523,148) | 16,885 | Not Applicable | | Weighted average number of ordinary shares for the purpose of calculating basic (loss) earnings per share | 600,000,000 | 600,000,000 | 0.0% | | Basic (Loss) Earnings Per Share (RMB cents) | (87.19) | 2.81 | Not Applicable | | Diluted (Loss) Earnings Per Share (RMB cents) | (87.19) | 2.81 | Not Applicable | - The exercise of share options was not assumed for the calculation of diluted (loss) earnings per share as the adjusted exercise prices of the vested share options were all higher than the average market price of the shares[29](index=29&type=chunk) [8. Dividends](index=16&type=section&id=8.%20Dividends) No interim dividend has been proposed for the period ended June 30, 2025, since the end of the reporting period, consistent with the prior year - No interim dividend has been proposed for the period ended June 30, 2025, since the end of the reporting period (June 30, 2024: nil)[30](index=30&type=chunk) [9. Property, Plant and Equipment and Right-of-Use Assets](index=17&type=section&id=9.%20Property%2C%20Plant%20and%20Equipment%20and%20Right-of-Use%20Assets) For the six months ended June 30, 2025, the Group's capital expenditure on property, plant and equipment significantly decreased, and no new land use rights were acquired, indicating a slowdown in capital investment Property, Plant and Equipment and Right-of-Use Assets Related Expenses (For the Six Months Ended June 30) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Acquisition of property, plant and equipment and construction costs incurred | 65,139 | 432,236 | -84.9% | | Acquisition of new land use rights | – | 41,613 | Not Applicable | [10. Trade and Bills Receivables and Other Receivables](index=17&type=section&id=10.%20Trade%20and%20Bills%20Receivables%20and%20Other%20Receivables) As of June 30, 2025, the Group's total trade and bills receivables and other receivables decreased, with a significant drop in bills receivables. The company offers credit terms of up to 90 days to long-term customers and continues to recognize transferred bills receivables with full recourse Trade and Bills Receivables and Other Receivables (As of June 30, 2025) | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Trade receivables from contracts with customers (net) | 38,468 | 44,577 | -13.7% | | Bills receivables | 61,826 | 112,592 | -45.1% | | Prepayments to suppliers | 480,042 | 541,000 | -11.3% | | Recoverable value-added tax | 129,898 | 127,988 | +1.5% | | Other prepayments, deposits and other receivables | 137,385 | 137,511 | -0.1% | | **Total** | **847,619** | **963,668** | **-12.0%** | - The Group grants credit terms of up to **90 days** to long-term customers with good credit quality and payment records[32](index=32&type=chunk) - As of June 30, 2025, bills receivables amounting to **RMB 39,449 thousand** were transferred to banks and suppliers with full recourse, and the Group continued to recognize their full carrying amounts[34](index=34&type=chunk) [11. Trade and Bills Payables and Other Payables and Accrued Expenses](index=20&type=section&id=11.%20Trade%20and%20Bills%20Payables%20and%20Other%20Payables%20and%20Accrued%20Expenses) As of June 30, 2025, the Group's total trade and bills payables, other payables, and accrued expenses decreased, primarily due to a reduction in construction payables, accrued staff costs, and other taxes payable Trade and Bills Payables and Other Payables and Accrued Expenses (As of June 30, 2025) | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Trade payables | 121,142 | 113,481 | +6.8% | | Bills payables | 73,237 | 80,000 | -8.4% | | Accrued staff costs | 11,285 | 24,060 | -53.1% | | Construction payables | 81,136 | 144,248 | -43.8% | | Transportation payables | 11,155 | 7,572 | +47.3% | | Other taxes payable | 2,422 | 22,384 | -89.2% | | Other payables and accrued expenses | 13,956 | 31,669 | -55.9% | | **Total** | **314,333** | **423,414** | **-25.8%** | - The aging analysis of trade payables shows a significant **decrease in amounts within 30 days**, while amounts due **181 to 365 days and over 1 year increased**[37](index=37&type=chunk) - The maturity analysis of bills payables shows that bills due **within 30 days and 31 to 60 days were cleared**, while bills due **121 to 180 days increased**[37](index=37&type=chunk) [12. Amounts Due to Related Parties](index=22&type=section&id=12.%20Amounts%20Due%20to%20Related%20Parties) As of June 30, 2025, total amounts due to related parties decreased from RMB 3,177 thousand to RMB 1,201 thousand, mainly due to a reduction in amounts payable to Mr. Xu Songqing. These amounts are non-trade in nature, interest-free, unsecured, and repayable within twelve months Amounts Due to Related Parties (As of June 30, 2025) | Related Party | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Mr. Xu | 958 | 3,014 | -68.2% | | Mr. Chen Chunniu | 243 | 163 | +49.1% | | **Total** | **1,201** | **3,177** | **-62.2%** | - These amounts are **non-trade in nature**, **interest-free**, **unsecured**, and **repayable within twelve months** from their respective dates[38](index=38&type=chunk) [13. Borrowings](index=23&type=section&id=13.%20Borrowings) As of June 30, 2025, the Group's total borrowings slightly decreased, with both bank and other borrowings due within one year declining, while amounts shown under non-current liabilities increased, indicating an adjustment in borrowing structure Total Borrowings and Repayment Schedule (As of June 30, 2025) | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Total fixed-rate borrowings | 2,204,722 | 2,207,722 | -0.1% | | Total variable-rate borrowings | 157,340 | 302,721 | -48.0% | | **Total Borrowings** | **2,362,062** | **2,510,443** | **-5.9%** | | Due within one year (bank borrowings) | 905,909 | 1,257,356 | -27.9% | | Due after one year (bank borrowings) | 1,252,015 | 981,101 | +27.6% | | Due within one year (other borrowings) | 191,777 | 216,466 | -11.4% | | Due after one year (other borrowings) | 12,361 | 55,520 | -77.8% | - The secured portion of the Group's borrowings is **collateralized by certain assets and equity interests in a subsidiary**, and some borrowings are also **personally guaranteed by certain directors** of the Company[40](index=40&type=chunk) [14. Share Capital](index=25&type=section&id=14.%20Share%20Capital) As of June 30, 2025, the company's authorized and issued share capital remained unchanged, consisting of ordinary shares with a par value of HKD 0.01 each Share Capital Details (As of June 30, 2025) | Metric | Number of Shares | Share Capital (HKD thousand) | | :--- | :--- | :--- | | Authorised share capital | 8,000,000,000 | 80,000 | | Issued share capital | 600,000,000 | 6,000 | - The share capital presented in the condensed consolidated statement of financial position was **RMB 4,999 thousand**, consistent with December 31, 2024[41](index=41&type=chunk) [15. Share-based Payments](index=25&type=section&id=15.%20Share-based%20Payments) For the six months ended June 30, 2025, the number of outstanding share options under the company's share option scheme decreased due to lapse, with no new grants or exercises. All outstanding share options have an exercise price of HKD 2.75 per share Movements in Share Options (For the Six Months Ended June 30, 2025) | Metric | Number of Share Options | | :--- | :--- | | Outstanding at December 31, 2024 | 25,272,720 | | Lapsed during the period | (10,109,088) | | Outstanding at June 30, 2025 | 15,163,632 | - As of June 30, 2025, all **15,163,632 outstanding share options** were exercisable at an exercise price of **HKD 2.75 per share**[46](index=46&type=chunk) - The **fair value of the share options** was determined to be **HKD 11,598,000** at the grant date[46](index=46&type=chunk) [16. Capital Commitments](index=28&type=section&id=16.%20Capital%20Commitments) As of June 30, 2025, the Group's contracted but unprovided capital expenditure for the acquisition of property, plant and equipment decreased but remained at RMB 100.9 million Capital Commitments (As of June 30, 2025) | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Capital expenditure contracted but not provided for in the condensed consolidated financial statements in respect of acquisition of property, plant and equipment | 100,929 | 112,074 | -9.9% | [17. Pledged Assets](index=28&type=section&id=17.%20Pledged%20Assets) As of June 30, 2025, certain of the Group's borrowings were secured by its assets, with the total carrying value of pledged assets slightly decreasing, and trade receivables no longer serving as collateral Carrying Value of Pledged Assets (As of June 30, 2025) | Pledged Assets | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Trade receivables | – | 9,259 | Not Applicable | | Property, plant and equipment | 1,499,037 | 1,451,558 | +3.3% | | Right-of-use assets | 222,174 | 237,239 | -6.4% | | Restricted bank deposits | 129,906 | 179,431 | -27.6% | | **Total** | **1,851,117** | **1,877,487** | **-1.4%** | - Certain of the Group's borrowings are also **personally guaranteed by certain directors** of the Company[40](index=40&type=chunk) [18. Fair Value Measurement of Financial Instruments](index=29&type=section&id=18.%20Fair%20Value%20Measurement%20of%20Financial%20Instruments) Some of the Group's financial instruments are measured at fair value, with equity investments at fair value through other comprehensive income classified as Level 3 fair value measurements, valued using an asset-based approach. There were no transfers between fair value hierarchies during this interim period Fair Value of Financial Assets (As of June 30, 2025) | Financial Assets | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Fair Value Hierarchy Level | | :--- | :--- | :--- | :--- | | Equity investments at fair value through other comprehensive income | 1,405 | 1,405 | Level 3 | - The valuation technique uses an **asset-based approach** to estimate fair value by subtracting total liabilities from the fair market value of total assets of unlisted equity investments[51](index=51&type=chunk) - There were **no transfers between different levels of the fair value hierarchy** during the current interim period[51](index=51&type=chunk) [19. Related Party Disclosures](index=31&type=section&id=19.%20Related%20Party%20Disclosures) The Group has outstanding balances and lease liability interest expenses with related parties. Some borrowings are guaranteed by directors, and key management personnel compensation has decreased Nature and Amount of Related Party Transactions (For the Six Months Ended June 30) | Related Party | Nature of Transaction | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | :--- | | Hua Jin Holdings Pte. Ltd | Interest expense on lease liabilities | 8 | 1 | | Oriental Yijin Limited | Interest expense on lease liabilities | 11 | 12 | Key Management Personnel Compensation (For the Six Months Ended June 30) | Compensation Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Salaries, allowances and other benefits | 2,647 | 2,817 | | Contributions to retirement benefit schemes | 91 | 152 | | Share-based payment expenses | – | 245 | | **Total** | **2,738** | **3,214** | - Certain of the Group's borrowings are **secured by guarantees provided by certain directors** of the Company[56](index=56&type=chunk) [Management Discussion and Analysis](index=33&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews the company's business and financial performance in H1 2025, highlighting significant declines in revenue and profit, and detailing the reasons for changes in various financial indicators. Management also outlines the company's future strategic transformation, leveraging Huajin Port and Metal Industrial Park to shift from single steel processing and sales to diversified port services, full metal industry chain processing, bulk raw material trade, logistics, and supply chain finance for sustainable growth [Business Review](index=33&type=section&id=Business%20Review) Huajin International Holdings Limited, a cold-rolled steel processing enterprise, experienced a significant performance decline in H1 2025, with revenue down 77.1% and a substantial loss. The company is actively transforming, investing in Huajin Port and Huajin Metal Industrial Park to expand port operations and related services, aiming to build a steel trade and distribution center in South China - The Group is primarily engaged in the production and sale of cold-rolled and galvanized steel products, and since 2024, has also been involved in **port operations and providing port and port-related services**[59](index=59&type=chunk) - Huajin Port has invested approximately **RMB 750.0 million**, with berths 1, 2, and 3 having obtained "Port Operation Permits" and commenced operations, capable of accommodating vessels with a deadweight tonnage of **30,000 tons**[59](index=59&type=chunk) - Huajin Metal Industrial Park has an annual processing capacity of **3.5 million tons**, and Huajin Port's annual throughput is expected to exceed **15 million tons**, aiming to establish a steel trade and distribution center in the Greater Bay Area[60](index=60&type=chunk) Key Financial Data for Business Review (For the Six Months Ended June 30) | Metric | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Revenue | 732.9 | 3,206.5 | -77.1% | | (Loss) Profit Attributable to Owners of the Company | (523.1) | 16.9 | Not Applicable | | Sales volume of cold-rolled and galvanized steel products | 145,494 tons | 678,887 tons | -78.6% | | Acquisition of property, plant and equipment and construction costs incurred | 65.1 | 432.2 | -84.9% | [Financial Review](index=35&type=section&id=Financial%20Review) The Group's financial performance sharply deteriorated in H1 2025, with significant declines in revenue and sales volume leading to a substantial gross loss. Other income decreased, selling and administrative expenses were controlled, and finance costs reduced due to lower interest rates, but overall, a significant loss was recorded [Revenue](index=35&type=section&id=Revenue) The Group's revenue significantly decreased by 77.1% in H1 2025, primarily due to notable declines in both sales volume and average selling prices of cold-rolled and galvanized steel products. The China market remains the main revenue source, but the proportion of other sales increased Revenue Breakdown (For the Six Months Ended June 30) | Product Category | 2025 (RMB thousand) | 2025 (%) | 2024 (RMB thousand) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Sales of cold-rolled steel products | 341,036 | 46.6 | 1,737,573 | 54.2 | | Sales of galvanized steel products | 209,050 | 28.5 | 1,148,899 | 35.8 | | Sales of hot-rolled steel products and others | 182,820 | 24.9 | 319,991 | 10.0 | | **Total Revenue** | **732,906** | **100.0** | **3,206,463** | **100.0** | - Sales volume of cold-rolled steel products decreased by **78.3% to 91,262 tons**, and galvanized steel products sales volume decreased by **79.1% to 54,232 tons**[67](index=67&type=chunk) - The average selling price of cold-rolled steel products fell from **RMB 4,137 per ton to RMB 3,737 per ton**, and galvanized steel products' average selling price fell from **RMB 4,437 per ton to RMB 3,855 per ton**[68](index=68&type=chunk) - Domestic sales in the China market contributed **over 99.6% of revenue**, with other income (scrap steel sales and processing services) accounting for approximately **24.9% of revenue** (2024: 10.0%)[68](index=68&type=chunk) [Cost of Sales](index=37&type=section&id=Cost%20of%20Sales) The Group's cost of sales decreased by 59.1% in H1 2025, primarily due to lower direct material costs resulting from decreased sales volume. Utility and direct labor expenses also declined due to reduced production, while depreciation expenses slightly increased Cost of Sales Breakdown (For the Six Months Ended June 30) | Cost Category | 2025 (RMB thousand) | 2025 (%) | 2024 (RMB thousand) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Direct materials | 1,118,522 | 87.9 | 2,865,012 | 92.1 | | Utilities | 32,470 | 2.6 | 104,919 | 3.4 | | Direct labour | 35,331 | 2.8 | 47,511 | 1.5 | | Depreciation expenses | 49,958 | 3.9 | 46,294 | 1.5 | | Consumables | 32,020 | 2.4 | 43,089 | 1.4 | | Others | 4,818 | 0.4 | 5,449 | 0.1 | | **Total Cost of Sales** | **1,273,119** | **100.0** | **3,112,274** | **100.0** | - The decrease in direct material costs was mainly due to **reduced sales volume of cold-rolled steel products, galvanized steel products, and hot-rolled steel coils**[72](index=72&type=chunk) - **Utility expenses decreased by 69.0% to RMB 32.5 million**, and **direct labour decreased by 25.7% to RMB 35.3 million**, primarily due to reduced production volume[73](index=73&type=chunk) - **Depreciation expenses increased by 8.0% to RMB 50.0 million**, mainly due to increased depreciation of property, plant and equipment[74](index=74&type=chunk) [Gross Profit](index=38&type=section&id=Gross%20Profit) The Group shifted from gross profit to a gross loss of RMB 540.2 million in H1 2025, with a gross loss margin as high as 73.7%. This was primarily attributed to declining steel product profit margins, global punitive tariffs leading to shrinking downstream demand, delayed or canceled orders, and resulting non-refundable commitment fees and deposits Gross (Loss) Profit and Gross (Loss) Profit Margin (For the Six Months Ended June 30) | Metric | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Gross (Loss) Profit | (540.2) | 94.2 | Not Applicable | | Gross (Loss) Profit Margin (%) | (73.7%) | 2.9% | Not Applicable | - The gross loss was primarily due to a **decrease in profit margins** from the sale of all steel products[76](index=76&type=chunk) - The imposition of **punitive tariffs on steel products by major importing countries globally** led to a significant **decline in sales volume and average selling prices** of downstream customers' exported goods, resulting in shrinking end-market demand[76](index=76&type=chunk) - The sharp drop in orders resulted in the **failure to meet minimum purchase volume requirements** in long-term supply contracts with steel mills, triggering **non-refundable commitment fees and deposits**, which increased the cost of sales[76](index=76&type=chunk) [Other Income, Other Gains and Losses (Net)](index=39&type=section&id=Other%20Income%2C%20Other%20Gains%20and%20Losses%20(Net)) The Group's other income, other gains and losses (net) shifted from a net gain to a net loss of RMB 2.1 million in H1 2025, primarily due to reduced additional VAT credit deductions, decreased unrealized gains on derivative financial instruments, and increased losses on disposal of property, plant and equipment Other Income, Other Gains and Losses (Net) (For the Six Months Ended June 30) | Metric | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Other Income, Other Gains and Losses (Net) | (2.1) | 24.5 | Not Applicable | - The net loss was mainly due to a **decrease of RMB 17.2 million in additional VAT credit deductions**, a **decrease of RMB 3.0 million in unrealized gains on derivative financial instruments** from commodity futures contracts, and an **increase of RMB 4.6 million in loss on disposal of property, plant and equipment**[78](index=78&type=chunk) [Selling Expenses](index=39&type=section&id=Selling%20Expenses) The Group's selling expenses decreased by 17.9% to RMB 13.8 million in H1 2025, primarily due to lower revenue Selling Expenses (For the Six Months Ended June 30) | Metric | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Selling Expenses | 13.8 | 16.8 | -17.9% | - The decrease in selling expenses was primarily due to the **decrease in revenue** for the six months ended June 30, 2025[79](index=79&type=chunk) [Administrative Expenses](index=39&type=section&id=Administrative%20Expenses) The Group's administrative expenses decreased by 13.3% to RMB 32.0 million in H1 2025, primarily due to reductions in general administrative salaries and staff benefits, consumables, and entertainment expenses Administrative Expenses (For the Six Months Ended June 30) | Metric | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Administrative Expenses | 32.0 | 36.9 | -13.3% | - The decrease in administrative expenses was mainly due to a **reduction of approximately RMB 1.9 million in general administrative salaries and staff benefits**, a **reduction of approximately RMB 1.5 million in consumables**, and a **reduction of approximately RMB 1.5 million in entertainment expenses**[80](index=80&type=chunk) [Investment Income](index=39&type=section&id=Investment%20Income) The Group's investment income was nil in H1 2025, compared to RMB 6.1 million recorded in the prior period, primarily from net realized gains on derivative financial instruments from commodity futures contracts Investment Income (For the Six Months Ended June 30) | Metric | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Investment Income | – | 6.1 | Not Applicable | - Investment income in the corresponding period of 2024 was mainly derived from **net realized gains on derivative financial instruments** from commodity futures contracts[81](index=81&type=chunk) [Finance Costs](index=40&type=section&id=Finance%20Costs) The Group's finance costs decreased by 44.5% to RMB 29.5 million in H1 2025, primarily attributable to a reduction in the general interest rates for most borrowings Finance Costs (For the Six Months Ended June 30) | Metric | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Finance Costs | 29.5 | 53.2 | -44.5% | - The decrease in finance costs was primarily attributable to a **lower general interest rate** for most borrowings for the six months ended June 30, 2025, compared to the same period last year[82](index=82&type=chunk) [Income Tax Expense](index=40&type=section&id=Income%20Tax%20Expense) The Group recorded a deferred tax credit of RMB 93.7 million in H1 2025, compared to an income tax expense in the prior period Income Tax Credit (Expense) (For the Six Months Ended June 30) | Metric | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Deferred tax credit (expense) | (93.7) | (0.8) | Not Applicable | | Income tax expense | – | 3.4 | Not Applicable | [(Loss) Profit for the Period](index=40&type=section&id=(Loss)%20Profit%20for%20the%20Period) The Group shifted from a profit in the prior period to a loss attributable to owners of the Company of RMB 523.1 million in H1 2025 (Loss) Profit for the Period (For the Six Months Ended June 30) | Metric | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | (Loss) Profit Attributable to Owners of the Company | (523.1) | 16.9 | Not Applicable | [Liquidity and Financial Resources](index=40&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's liquidity position deteriorated, with a significant decrease in bank balances and cash, a notable increase in both net current liabilities and net liabilities, a decline in the current ratio, and an increase in the gearing ratio. Nevertheless, the Board expects existing credit facilities to be renewed, with directors providing personal guarantees to support the Group's financial commitments Overview of Liquidity and Financial Resources (As of June 30, 2025) | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Bank balances and cash | 5.2 | 35.3 | -85.3% | | Restricted bank deposits | 129.9 | 179.4 | -27.6% | | Net current liabilities | (1,096.1) | (754.5) | -45.3% | | Net (liabilities) assets | (99.6) | 423.8 | Not Applicable | | Current ratio (%) | 48.4% | 66.4% | -18.0pp | | Total borrowings | 2,362.1 | 2,510.4 | -5.9% | | Total assets | 3,302.5 | 3,716.7 | -11.1% | | Gearing ratio (%) | 71.5% | 67.5% | +4.0pp | - The Group's total bank facilities amounted to approximately **RMB 2,855.2 million**, of which approximately **RMB 1,208.8 million remained unutilised**[87](index=87&type=chunk) - Certain of the Group's borrowings are **secured by assets** and **personally guaranteed by Mr. Xu Songqing and Mr. Luo Canwen**, with Mr. Xu also agreeing to provide necessary financial support[88](index=88&type=chunk) [Foreign Exchange Risk](index=41&type=section&id=Foreign%20Exchange%20Risk) The Group faces foreign exchange risk from USD to RMB fluctuations, with some revenue settled in USD and bank balances denominated in USD, HKD, and SGD. Currently, there is no foreign exchange hedging policy, but management closely monitors and considers hedging significant risks - The Group is exposed to **fluctuations in the exchange rate of USD against RMB**, with some revenue derived from **USD-denominated sales to overseas customers**[89](index=89&type=chunk) - Bank balances denominated in **USD, HKD, and SGD** also expose the Group to foreign exchange risk[89](index=89&type=chunk) - The Group currently has **no foreign exchange hedging policy**, but management closely monitors and considers hedging significant foreign exchange risks[89](index=89&type=chunk) [Financial Instruments](index=41&type=section&id=Financial%20Instruments) During the review period, the Group did not enter into any financial instruments for hedging purposes, except for commodity futures contracts - During the review period, the Group did not enter into any financial instruments for hedging purposes, **except for commodity futures contracts**[90](index=90&type=chunk) [Significant Acquisitions and Disposals](index=41&type=section&id=Significant%20Acquisitions%20and%20Disposals) For the six months ended June 30, 2025, the Group had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, the Group had **no significant acquisitions or disposals of subsidiaries, associates, or joint ventures**[91](index=91&type=chunk) [Borrowings](index=42&type=section&id=Borrowings) Details of the Group's borrowings as of June 30, 2025, are disclosed in Note 13 to the condensed consolidated financial statements - Details of the Group's borrowings as of June 30, 2025, are set out in **Note 13** to the condensed consolidated financial statements[93](index=93&type=chunk) [Capital Structure](index=42&type=section&id=Capital%20Structure) Details of the Group's share capital are disclosed in Note 14 to the condensed consolidated financial statements - Details of the Group's share capital are set out in **Note 14** to the condensed consolidated financial statements[94](index=94&type=chunk) [Capital Commitments](index=42&type=section&id=Capital%20Commitments) Details of the Group's capital commitments are disclosed in Note 16 to the condensed consolidated financial statements - Details of the Group's capital commitments are set out in **Note 16** to the condensed consolidated financial statements[95](index=95&type=chunk) [Pledged Assets](index=42&type=section&id=Pledged%20Assets) Details of the Group's pledged assets are disclosed in Note 17 to the condensed consolidated financial statements - Details of the Group's pledged assets are set out in **Note 17** to the condensed consolidated financial statements[96](index=96&type=chunk) [Contingent Liabilities](index=42&type=section&id=Contingent%20Liabilities) During the review period, the Company provided guarantees to banks as collateral for credit facilities granted to certain of its subsidiaries. As of June 30, 2025, the Group had no guarantees provided to any third parties and no contingent liabilities - The Company provided **guarantees to banks** as collateral for credit facilities granted to certain of its subsidiaries in the PRC[97](index=97&type=chunk) - As of June 30, 2025, the Group had **no guarantees provided to any third parties** and **no contingent liabilities** (December 31, 2024: nil)[97](index=97&type=chunk) [Employees](index=42&type=section&id=Employees) As of June 30, 2025, the Group's total number of employees decreased to 1,165, and total staff costs also declined. The company has a share option scheme to incentivize employees, but no share-based payment expenses were recognized in this period Employees and Staff Costs (For the Six Months Ended June 30) | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total number of full-time employees | 1,165 | 1,492 | -22.0% | | Total staff costs (including directors' emoluments) | RMB 56.6 million | RMB 70.3 million | -19.5% | - The Company has a **share option scheme** to encourage and reward eligible employees (including directors) for their contributions to the Group's performance and business development based on individual performance[98](index=98&type=chunk) - For the six months ended June 30, 2025, **no share-based payment expenses were recognized** (corresponding period in 2024: RMB 0.2 million)[98](index=98&type=chunk) [Future Outlook](index=43&type=section&id=Future%20Outlook) Facing market volatility, Huajin Group is actively adjusting its strategy, leveraging Huajin Metal Industrial Park and Huajin Port to build a full industry chain ecosystem encompassing "raw material centralized procurement—logistics—warehousing and processing—production—finished product warehousing—logistics distribution—industry-finance trade—financial supply chain." The company plans to expand into port steel handling, metal processing and warehousing platforms, bulk raw material trade, logistics and ferrous metal trading market services, and diversified trade and import/export businesses, aiming to transform from a single cold-rolled coil production and sales model to a diversified, integrated profit model, and to create a diversified industrial group integrating port handling, metal processing, warehousing logistics, raw material trade, supply chain finance, and cross-border trade [Huajin Group's Future Development Direction and Diversified Profit Model](index=43&type=section&id=Huajin%20Group%27s%20Future%20Development%20Direction%20and%20Diversified%20Profit%20Model) Huajin Group plans to leverage the advantages of Huajin Metal Industrial Park and Huajin Port to build a full industry chain ecosystem, promoting a shift from a single cold-rolled coil production and sales profit model to a diversified and integrated one - The Group plans to build a **full industry chain ecosystem** encompassing "raw material centralized procurement — logistics — warehousing and processing — production — finished product warehousing — logistics distribution — industry-finance trade — financial supply chain"[100](index=100&type=chunk) - It is expected to promote the transformation of the profit model from a single cold-rolled coil production and sales to a **diversified and integrated model**[100](index=100&type=chunk) [Leveraging Port Advantages to Expand Port Steel Handling and Integrated Services](index=43&type=section&id=Leveraging%20Port%20Advantages%20to%20Expand%20Port%20Steel%20Handling%20and%20Integrated%20Services) Huajin Port has three 30,000-ton berths with an annual throughput capacity of 20 million tons, capable of handling all types of cargo. Future plans include introducing container transshipment, lightering, bonded warehousing, and cross-border trade functions to create a key port hub in the Greater Bay Area and significantly reduce overall steel costs - Huajin Port has completed **three 30,000-ton berths**, with an annual throughput capacity of up to **20 million tons**, capable of handling all types of cargo including containers, steel coils, profiles, and bulk goods[101](index=101&type=chunk) - It is expected to achieve an annual handling capacity of **18 to 20 million tons** after reaching full production[101](index=101&type=chunk) - Future plans include introducing functions such as **container transshipment, lightering, bonded warehousing, and cross-border trade** to build a key port hub in the Greater Bay Area and significantly **reduce overall costs for southbound steel** through one-stop services[101](index=101&type=chunk) [Building a Full Metal Industry Chain Processing and Warehousing Platform](index=44&type=section&id=Building%20a%20Full%20Metal%20Industry%20Chain%20Processing%20and%20Warehousing%20Platform) Huajin Industrial Park is equipped with various processing equipment, boasting an annual processing capacity of 3 million tons, offering integrated processing and warehousing services. Future plans include establishing an IoT platform integrating IoT, edge computing, and AI analysis for full-process digital management, and striving to build a modern public warehouse for metal futures and spot regulated trade delivery in the Greater Bay Area - Huajin Industrial Park is currently equipped with processing equipment such as **hot-rolled flattening machines, slitting machines, and cold-rolled flattening machines**, with an annual processing capacity of **3 million tons**[102](index=102&type=chunk) - In the future, an **IoT platform integrating IoT, edge computing, and AI analysis** will be built to implement **full-process digital management** of goods inbound, outbound, and in-stock management[102](index=102&type=chunk) - Strive to build a **modern public warehouse for metal futures and spot regulated trade delivery** in the Greater Bay Area[102](index=102&type=chunk) [Developing Bulk Raw Material Trade such as High-Calcium Stone and Construction Sand and Gravel](index=44&type=section&id=Developing%20Bulk%20Raw%20Material%20Trade%20such%20as%20High-Calcium%20Stone%20and%20Construction%20Sand%20and%20Gravel) Leveraging its port navigation capabilities and rear storage yard resources, the Group plans to directly procure high-calcium stone and construction sand and gravel from premium mining areas in Guangxi, establishing a direct supply from production areas and port stockpiling model. This will be combined with a "two-way cargo flow" model to form long-term partnerships with steel mills and expand market coverage - Leveraging the port's navigation capabilities and the advantage of **600 mu of rear storage yard resources**, directly procure **high-calcium stone and construction sand and gravel** from premium mining areas in Guangxi, forming a direct supply from production areas and port stockpiling model[103](index=103&type=chunk) - Sales during the **dry season from October to April** each year are expected to achieve **higher gross profit margins**[103](index=103&type=chunk) - Combine with the "two-way cargo flow" model for bulk commodity distribution services to form **long-term partnerships with steel mills** and expand market coverage in key national regions[103](index=103&type=chunk) [Expanding Logistics and Ferrous Metal Trading Market Services](index=45&type=section&id=Expanding%20Logistics%20and%20Ferrous%20Metal%20Trading%20Market%20Services) The Group has launched its road transportation segment, with an estimated annual land transport demand of 6 to 10 million tons within the park. Concurrently, it will establish partnerships with steel mills and large trading enterprises to promote supply chain finance businesses such as centralized steel procurement, financing trade, and consignment sales, and leverage Huajin Port to build an integrated online and offline metal trading market - The Group has launched its **road transportation segment**, with an estimated annual land transport demand of **6 to 10 million tons** within the park[105](index=105&type=chunk) - Establish stable cooperative relationships with multiple domestic steel mills and large state-owned trading enterprises to promote **supply chain finance businesses** such as **centralized steel procurement, financing trade, and consignment sales**[105](index=105&type=chunk) - Leveraging Huajin Port, in collaboration with major steel mills and steel traders, build a **metal trading market** covering all types of steel products, creating an **integrated online and offline metal trading demonstration zone**[105](index=105&type=chunk) [Developing Diversified Trade and Import/Export Businesses](index=45&type=section&id=Developing%20Diversified%20Trade%20and%20Import%2FExport%20Businesses) The Group intends to expand its import and export businesses, leveraging its 30,000-ton berth advantage to gradually extend into bulk commodity trade areas such as various steel products, stainless steel, timber, grain, white sugar, and high-calcium stone, thereby diversifying operational risks through a richer cargo structure - The Group intends to **expand its import and export businesses** and open up cross-border trade channels[106](index=106&type=chunk) - Leveraging the advantage of its **30,000-ton berth**, gradually expand into bulk commodity trade areas such as **various steel products, stainless steel, timber, grain, white sugar, and high-calcium stone**[106](index=106&type=chunk) - **Diversify operational risks** by enriching the cargo type structure[106](index=106&type=chunk) [Strategic Vision](index=45&type=section&id=Strategic%20Vision) Leveraging the river-sea intermodal transport advantages of the Xijiang Golden Waterway and Yamen Estuary, the Group will build a diversified industrial group integrating port handling, metal processing, warehousing logistics, raw material trade, supply chain finance, and cross-border trade, achieving stable and sustainable growth - The Group will leverage the **river-sea intermodal transport advantages** of the Xijiang Golden Waterway and Yamen Estuary to build a **diversified industrial group** integrating **port handling, metal processing, warehousing logistics, raw material trade, supply chain finance, and cross-border trade**[107](index=107&type=chunk) - Future profitability will be achieved through **synergies across diversified businesses**, leading to **stable and sustainable growth**[107](index=107&type=chunk) [Other Information](index=46&type=section&id=Other%20Information) This section discloses equity interests of directors and substantial shareholders, changes in the share option scheme, board member changes, company securities dealing policy, interim dividend policy, compliance with corporate governance practices, and significant post-reporting period events, including changes in company secretary and authorized representatives [Disclosure of Interests](index=46&type=section&id=Disclosure%20of%20Interests) As of June 30, 2025, Mr. Xu Songqing and Mr. Luo Canwen, as directors and chief executives, held long positions of 65.25% and 9.00% of the company's shares, respectively. Major shareholders Haiyi Limited and Intrend Ventures Limited held 391,500,000 shares, and Zhongcheng Limited held 54,000,000 shares Directors' and Chief Executives' Long Positions in the Company's Shares (As of June 30, 2025) | Name of Director | Nature of Interest | Number of Shares Held | Percentage of the Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Xu Songqing | Beneficial owner and interest in controlled corporation | 391,500,000 | 65.25% | | Mr. Luo Canwen | Beneficial owner and interest in controlled corporation | 54,000,000 | 9.00% | Directors' Long Positions in Relevant Shares of the Company (As of June 30, 2025) | Name of Director | Nature of Interest | Number of Relevant Shares Involved in Share Options Granted | Percentage of the Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Xu Songqing | Beneficial owner | 1,090,909 | 0.18% | | Mr. Xu Jianhong | Beneficial owner | 1,090,909 | 0.18% | | Mr. Luo Canwen | Beneficial owner | 1,090,909 | 0.18% | | Mr. Xu Songman | Beneficial owner | 1,090,909 | 0.18% | Substantial Shareholders' and Other Persons' Long Positions in the Company's Shares (As of June 30, 2025) | Name of Shareholder | Nature of Interest | Number of Shares Held | Percentage of the Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Haiyi Limited | Beneficial owner | 391,500,000 | 65.25% | | Intrend Ventures Limited | Interest in controlled corporation | 391,500,000 | 65.25% | | Zhongcheng Limited | Beneficial owner | 54,000,000 | 9.00% | [Share Option Scheme](index=49&type=section&id=Share%20Option%20Scheme) The company's share option scheme aims to incentivize eligible persons, with the total number of shares available for issue not exceeding 10% of the issued share capital, and the total number of shares issuable under all granted and outstanding share options not exceeding 30% of the issued shares at any time. As of June 30, 2025, the number of outstanding share options decreased due to lapse, with the remaining scheme period being approximately 0.56 years - The scheme aims to **grant share options to eligible persons** as an incentive or reward for their contributions to the Group's performance[118](index=118&type=chunk) - The total number of shares that may be issued upon exercise of all options granted under the scheme and any other share option schemes of the Company shall not exceed **60,000,000 shares**, representing **10% of the Company's issued share capital** upon listing[120](index=120&type=chunk) - As of June 30, 2025, the number of share options available for grant under the scheme's authorized limit was **44,836,368**, and the **remaining life of the share option scheme was approximately 0.56 years**[120](index=120&type=chunk)[128](index=128&type=chunk) - For the six months ended June 30, 2025, a total of **10,109,088 share options lapsed**, resulting in the number of outstanding share options decreasing to **15,163,632**[129](index=129&type=chunk)[131](index=131&type=chunk) [Changes in Directors' Information](index=54&type=section&id=Changes%20in%20Directors%27%20Information) For the six months ended June 30, 2025, several changes occurred in the Board of Directors, including Mr. Chan Oi Fat's appointment as an independent non-executive director and Chairman of the Audit Committee, Mr. Xu Jianhong's resignation as Vice Chairman and re-designation as a non-executive director, Mr. Xu Songqing's appointment as Chairman of the Compliance Committee, and Mr. Sun Duowei's termination of directorship due to his passing - Mr. Chan Oi Fat was appointed as an **independent non-executive director, Chairman of the Audit Committee, and a member of the Nomination Committee, Remuneration Committee, and Compliance Committee** on March 27, 2025[132](index=132&type=chunk) - Mr. Xu Jianhong **resigned as Vice Chairman** of the Company and was **re-designated as a non-executive director** on April 17, 2025[132](index=132&type=chunk) - Mr. Xu Songqing was appointed as **Chairman of the Company's Compliance Committee** on April 17, 2025[132](index=132&type=chunk) - Mr. Sun Duowei's directorship was **terminated due to his passing** on February 28, 2025[132](index=132&type=chunk) [Directors' Rights to Acquire Shares or Debentures](index=55&type=section&id=Directors%27%20Rights%20to%20Acquire%20Shares%20or%20Debentures) Except for disclosed share option interests, for the six months ended June 30, 2025, neither the Company, its holding company, nor any of its subsidiaries or associated corporations were parties to any arrangements enabling the Company's directors and chief executives to acquire benefits through the purchase of shares or debentures - Except for the disclosed share option interests, for the six months ended June 30, 2025, neither the Company, its holding company, nor any of its subsidiaries or associated corporations were parties to any arrangements enabling the Company's directors and chief executives (including their respective spouses and children under 18) to acquire benefits through the purchase of shares or relevant shares or debentures of the Company or any of its associated corporations[133](index=133&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=55&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - For the six months ended June 30, 2025, **neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities**[134](index=134&type=chunk) [Interim Dividend](index=55&type=section&id=Interim%20Dividend) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025, consistent with the prior period - The Directors do not recommend the payment of an **interim dividend** for the six months ended June 30, 2025 (for the six months ended June 30, 2024: nil)[135](index=135&type=chunk) [Corporate Governance Practices](index=55&type=section&id=Corporate%20Governance%20Practices) The Company is committed to achieving high standards of corporate governance, has adopted the code provisions of the Corporate Governance Code set out in Appendix 14 to the Listing Rules, and complied with applicable code provisions for the six months ended June 30, 2025 - The Company has applied sound corporate governance principles and adopted the **code provisions of the Corporate Governance Code** set out in Appendix 14 to the Listing Rules[136](index=136&type=chunk) - For the six months ended June 30, 2025, the Company has **complied with the applicable code provisions** of the Corporate Governance Code set out in Appendix C1 to the Listing Rules[136](index=136&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors of Listed Issuers](index=56&type=section&id=Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors%20of%20Listed%20Issuers) The Company has adopted the Model Code set out in Appendix C3 to the Listing Rules and has received confirmation from all directors that they complied with the required standards of the Model Code for the six months ended June 30, 2025 - The Company has adopted the **Model Code** set out in Appendix C3 to the Listing Rules[138](index=138&type=chunk) - Following specific enquiries with each Director, the Company has received confirmation from all Directors that they have **complied with the required standards** set out in the Model Code for the six months ended June 30, 2025[138](index=138&type=chunk) [Events After the Reporting Period](index=56&type=section&id=Events%20After%20the%20Reporting%20Period) After the reporting period, Mr. Wong Chak Keung resigned as the company secretary and financial controller, leading to a temporary non-compliance with Listing Rules regarding authorized representatives. Subsequently, Ms. Cheung Lai Kuen and Ms. Lam Hoi Ki were successively appointed as company secretaries, bringing the company back into compliance - Mr. Wong Chak Keung **resigned as the company secretary and financial controller** of the Company on July 3, 2025, and ceased to be an authorized representative of the Company[139](index=139&type=chunk) - Following the appointment of Ms. Cheung Lai Kuen on July 7, 2025, the Company **re-complied with the requirements of Rule 3.05** of the Listing Rules of the Stock Exchange[139](index=139&type=chunk) - After Ms. Cheung's resignation on July 10, 2025, the Company appointed Ms. Lam Hoi Ki as company secretary on the same day, **re-complying with the requirements of Rule 3.28** of the Listing Rules[139](index=139&type=chunk) [Sufficiency of Public Float](index=57&type=section&id=Sufficiency%20of%20Public%20Float) Based on publicly available information and to the best of the Directors' knowledge, the Company maintained the prescribed public float as required by the Listing Rules for the six months ended June 30, 2025, and up to the date of this report - For the six months ended June 30, 2025, and up to the date of this report, the Company has **maintained the prescribed public float** as required by the Listing Rules[141](index=141&type=chunk) [Audit Committee](index=57&type=section&id=Audit%20Committee) The Company has established an Audit Committee in accordance with the Corporate Governance Code, comprising three independent non-executive directors, with Mr. Chan Oi Fat as Chairman, responsible for reviewing and overseeing the Group's financial reporting process - The Audit Committee comprises **three independent non-executive directors**: Mr. Chan Oi Fat, Mr. Au Kai Yuen, and Ms. Yip Nga Ting[142](index=142&type=chunk) - **Mr. Chan Oi Fat serves as the Chairman** of the Audit Committee[142](index=142&type=chunk) - The Audit Committee's responsibilities include **reviewing and overseeing the Group's financial reporting process**[142](index=142&type=chunk) [Review of Financial Statements](index=57&type=section&id=Review%20of%20Financial%20Statements) The Audit Committee has reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025, and is satisfied that they are prepared in accordance with applicable accounting standards and fairly present the financial position and results - The Audit Committee has **reviewed the Group's unaudited condensed consolidated financial statements** for the six months ended June 30, 2025[143](index=143&type=chunk) - Based on its review and discussions with management, the Audit Committee is satisfied that the financial statements are **prepared in accordance with applicable accounting standards** and **fairly present the Group's financial position and

About Us [Who We Are](index=3&type=section&id=Who%20We%20Are) The company has developed into a leading international "integrated finance + healthcare and elderly care" service group, ranking first in global insurance group brand value, serving nearly 247 million individual customers and over 4 million group customers, and listed in Hong Kong and Shanghai - The company is a leading international "integrated finance + healthcare and elderly care" service group, ranking first in global insurance group brand value[11](index=11&type=chunk) - Serves a large number of customers, covering nearly **247 million** individual customers and over **4 million** group customers[11](index=11&type=chunk) - The company is dual-listed on the Main Board of The Stock Exchange of Hong Kong (2318.HK) and the Shanghai Stock Exchange (601318.SH)[11](index=11&type=chunk) [Company Mission](index=4&type=section&id=Company%20Mission) The company is committed to becoming a leading international integrated financial, healthcare, and elderly care service group, upholding the philosophy of "Expertise Makes Life Simpler" by providing "worry-free, time-saving, and cost-effective" services to address customer pain points in finance, healthcare, and elderly care - The company's mission is to become a leading international integrated financial, healthcare, and elderly care service group, creating value for customers, employees, shareholders, and society[14](index=14&type=chunk) - Upholds the philosophy of "Expertise Makes Life Simpler," providing "worry-free, time-saving, and cost-effective" services[14](index=14&type=chunk)[15](index=15&type=chunk) - Achieves customer peace of mind, efficiency, convenience, and cost optimization through professional advisors, online/offline services, and integrated benefits[16](index=16&type=chunk)[17](index=17&type=chunk)[18](index=18&type=chunk) [Era Opportunities](index=5&type=section&id=Era%20Opportunities) China's economy enters a medium-to-high-speed growth phase, with an expanding middle class and accelerating population aging, driving strong demand for "insurance + services," efficient healthcare, and high-quality elderly care, ushering in a golden development period for the life insurance industry - China's economy is entering a medium-to-high-speed growth phase, with the middle-class population continuously expanding, projected to account for **one-third of the global total by 2030**[20](index=20&type=chunk)[21](index=21&type=chunk)[25](index=25&type=chunk) - Population aging is accelerating, with the proportion of people aged **65 and above expected to exceed 20% by 2030**, and the silver economy's scale potentially reaching **RMB 30 trillion by 2035**[20](index=20&type=chunk)[23](index=23&type=chunk)[26](index=26&type=chunk) - Healthcare demand is growing, with the total scale of the health service industry projected to reach **RMB 16 trillion by 2030**, but facing challenges such as uneven resource allocation[22](index=22&type=chunk)[27](index=27&type=chunk) [Company Strategy](index=6&type=section&id=Company%20Strategy) The company continues to deepen its "integrated finance + healthcare and elderly care" strategy, building core competitiveness through "service differentiation," leveraging technology to provide comprehensive financial advisory, family doctor, and elderly care management professional services, achieving service enhancement, efficiency improvement, cost reduction, and risk prevention - The company deepens its "integrated finance + healthcare and elderly care" strategy, building core competitiveness through "service differentiation"[28](index=28&type=chunk) - In integrated finance, it builds a "one customer, multiple accounts, diverse products, one-stop service" system to enhance customer loyalty[30](index=30&type=chunk) - In healthcare and elderly care, it represents the payer to integrate suppliers, providing cost-effective healthcare and elderly care services, and building professional family doctors and elderly care managers[33](index=33&type=chunk)[34](index=34&type=chunk) - Technology empowerment is central, utilizing AI large models, big data, and other technologies to achieve digital operations, management, and marketing, driving the transformation from "experience-based decision-making" to "data-driven decision-making"[36](index=36&type=chunk) - Technology empowerment yields significant results: AI doctors accurately diagnose over **10,000 diseases**, **94%** of life insurance policies are underwritten in seconds, AI customer service covers **80%** of total service volume, and property insurance anti-fraud intelligent claims interception reduces losses by **RMB 6.44 billion**[38](index=38&type=chunk)[39](index=39&type=chunk)[40](index=40&type=chunk) [Operating Highlights](index=10&type=section&id=Operating%20Highlights) In the first half of 2025, the Group maintained stable operations, with operating profit attributable to shareholders increasing by 3.7% year-on-year, and interim dividend per share growing by 2.2%; life and health insurance new business value surged by 39.8%, property and casualty insurance business grew steadily with optimized combined ratio; bank net profit remained stable with sound asset quality; integrated finance and healthcare & elderly care strategies continued to deepen, improving customer operating efficiency, and the brand value ranked first globally for insurance brands Group Key Financial Indicators for H1 2025 | Indicator | Amount/Ratio | Year-on-year/vs. beginning of year change | Notes | | :--- | :--- | :--- | :--- | | Operating Profit Attributable to Parent Company Shareholders | RMB 77.732 billion | 3.7% increase | | | Net Profit Attributable to Parent Company Shareholders | RMB 68.047 billion | - | | | Operating Revenue | RMB 546.469 billion | - | | | Equity Attributable to Parent Company Shareholders | RMB 943.952 billion | 1.7% increase | vs. beginning of year | | Interim Dividend Per Share | RMB 0.95 | 2.2% increase | | | Life & Health Insurance New Business Value | 39.8% increase | - | | | Property & Casualty Insurance Gross Written Premiums | RMB 171.857 billion | 7.1% increase | | | P&C Overall Combined Ratio | 95.2% | 2.6 percentage points optimization | | | Bank Net Profit | RMB 24.870 billion | - | | | Bank NPL Ratio | 1.05% | - | | | Individual Customers | Nearly 247 million | 1.8% increase | vs. beginning of year | | Retention Rate of Customers Holding 4+ Group Contracts | 97.8% | - | | | Contribution of Healthcare & Elderly Care Ecosystem Service Rights to Life Insurance NBV | Nearly 70% | - | | | Cumulative Investment in Real Economy | Nearly RMB 10.80 trillion | - | | | Brand Finance Global Insurance Brand Value Top 100 Ranking | 1st place | Ranked first for nine consecutive years | | [Chairman's Statement](index=12&type=section&id=Chairman's%20Statement) The Chairman emphasized the company's inheritance of the Special Economic Zone spirit, reshaping financial models through technological innovation, deepening the "integrated finance + healthcare and elderly care" strategy, leveraging AI technology to achieve service differentiation, enhance customer experience, and actively fulfill social responsibilities; in the first half, the Group maintained stable operations, with significant growth in life insurance new business value, strong performance in property and casualty insurance and banking, deepened implementation of the healthcare and elderly care strategy, and remarkable achievements in technology application - The company inherits the spirit of the Special Economic Zone, driving technological transformation with AI as the core, exploring innovation boundaries, and making financial services inclusive[59](index=59&type=chunk)[60](index=60&type=chunk) - In the first half of 2025, the Group's operating profit attributable to parent company shareholders was **RMB 77.732 billion**, a **3.7%** year-on-year increase; net profit was **RMB 68.047 billion**[61](index=61&type=chunk) - Life and health insurance new business value surged by **39.8%** year-on-year, with policy persistency remaining high[61](index=61&type=chunk)[66](index=66&type=chunk) - Property and casualty insurance gross written premiums were **RMB 171.857 billion**, a **7.1%** year-on-year increase; combined ratio was **95.2%**, optimizing by **2.6 percentage points** year-on-year[67](index=67&type=chunk) - Bank net profit was **RMB 24.870 billion**, non-performing loan ratio was **1.05%**, provision coverage ratio was **238.48%**, with overall stable asset quality[67](index=67&type=chunk) - Healthcare and elderly care strategy deepened, with nearly **63%** of individual customers enjoying healthcare and elderly care ecosystem service rights, and Ping An Family Doctor members exceeding **35 million**[68](index=68&type=chunk)[69](index=69&type=chunk) - AI technology is widely applied, with large model calls reaching **818 million**, assisting sales of **RMB 66.157 billion**, and property insurance anti-fraud intelligent claims interception reducing losses by **RMB 6.44 billion**[71](index=71&type=chunk) - Actively fulfills social responsibilities, with cumulative investment of nearly **RMB 10.80 trillion** supporting real economy development, and MSCI ESG rating upgraded to **AA**[72](index=72&type=chunk) [Financial Summary](index=16&type=section&id=Financial%20Summary) This section provides key financial indicators for the Group and its business segments in the first half of 2025, including operating profit, net profit, assets and liabilities, solvency, new business value, combined ratio, and non-performing loan ratio, comprehensively demonstrating the company's stable operating performance and growth trends across all businesses Group and Segment Key Financial Indicators for H1 2025 | Indicator | H1 2025 (RMB million/%) | H1 2024 (RMB million/%) | Change (%) / Percentage Points | | :--- | :--- | :--- | :--- | | **Group Performance** | | | | | Operating Profit Attributable to Parent Company Shareholders | 77,732 | 74,986 | 3.7% | | Net Profit Attributable to Parent Company Shareholders | 68,047 | 74,619 | -8.8% |

Financial Performance - For the six months ended June 30, 2025, the turnover was RMB 2,380,758, a decrease of 2.46% compared to RMB 2,440,776 in the same period of 2024[18]. - The company reported a loss for the period of RMB 18,870, compared to a profit of RMB 5,556 in the same period of 2024, representing a decline of 439.6%[18]. - The loss attributable to owners of the Company was RMB 14,468, a significant decrease of 361.9% from a profit of RMB 5,524 in the prior year[18]. - Basic and diluted loss per share was RMB (1.33), compared to earnings of RMB 0.51 per share in the same period of 2024, marking a decline of 360.8%[18]. - The Group recorded a consolidated turnover of approximately RMB2,380.8 million, a decrease of approximately 2.5% compared to the same period in 2024[37]. - The Group reported a loss attributable to owners of approximately RMB14.5 million, compared to a profit of RMB5.5 million in 2024, resulting in a basic and diluted loss per share of approximately RMB1.33 cents[37]. - The Group recorded a net loss attributable to owners of approximately RMB14.5 million, a decrease of 361.9% compared to a profit of RMB5.5 million in the previous year[68]. - Total comprehensive income for the period was RMB (13,314,000) for the six months ended June 30, 2025, compared to RMB 2,807,000 in the same period of 2024[122]. Revenue Breakdown - Over 90% of the Group's revenue during the Review Period (January 1, 2025 - June 30, 2025) was derived from the ODM business, primarily from smartphone and tablet segments[27]. - ODM sales revenue from mobile phone batteries accounted for approximately 63%, while tablet batteries contributed about 21% during the Review Period[28]. - Sales from mobile phone batteries amounted to approximately RMB1,423.8 million, accounting for 59.8% of the Group's consolidated turnover[51]. - The ODM business generated a turnover of approximately RMB2,249.3 million, accounting for approximately 94.5% of the Group's consolidated turnover, slightly increasing by 0.6%[47]. - The bare battery cell business recorded a turnover of approximately RMB47.7 million, accounting for approximately 2.0% of the Group's consolidated turnover, with a year-on-year decrease of approximately 26.9%[42]. Market Trends and Challenges - Global smartphone shipments increased by 1.5% year-over-year in Q1 2025, reaching 304.9 million units, but the Chinese market declined in Q2 2025[20]. - Economic uncertainties and geopolitical tensions are expected to challenge the global smartphone market, impacting demand and consumer spending[20]. - Competition is anticipated to intensify in niche segments such as foldable devices and advanced camera technology, while 5G devices are expected to drive growth in emerging markets[20]. - The global smartphone market is expected to face challenges due to economic uncertainties and geopolitical tensions, despite a projected 1.5% year-on-year increase in global smartphone shipments in Q1 2025[22]. - The rise of AI-enabled smartphones is anticipated to drive demand for high-performance lithium-ion batteries, which are crucial for innovation in the mobile phone industry[24]. Research and Development - The company focuses on R&D and application of lithium-ion batteries, providing solutions for mobile communication and internet technology companies[19]. - The company is exploring new power supply product markets and developing new energy storage intelligent hardware battery products with higher profit margins[19]. - The Group is diversifying its product and technology platforms to reduce dependence on the mobile phone battery segment amid overcapacity and declining prices in the industry[30]. - The Group is prioritizing profitability over operating income growth and is committed to investing in R&D for new technologies and AI applications[33]. - Research and development costs increased to RMB 53,101,000 in 2025 from RMB 49,532,000 in 2024, reflecting a growth of approximately 3.2%[159]. Financial Position and Cash Flow - As of June 30, 2025, the Group's cash and cash equivalents amounted to approximately RMB 148.7 million, a decrease from RMB 333.0 million as of December 31, 2024, primarily due to a net cash outflow from operating activities of approximately RMB 159.2 million during the review period[70][73]. - The Group's outstanding borrowings as of June 30, 2025, were approximately RMB 1,124.4 million, down from RMB 1,222.2 million as of December 31, 2024, with a total debt to equity ratio of approximately 105.1%[75][78]. - The Group's net current assets increased by approximately 5.7% to RMB 556.1 million as of June 30, 2025, compared to RMB 525.9 million as of December 31, 2024[82][88]. - The net cash outflow from financing activities for the six months ended June 30, 2025, was approximately RMB 100.6 million, compared to RMB 47.4 million in 2024[74][77]. - The Group's current ratio remained stable at approximately 1.2 times as of June 30, 2025, with current assets of approximately RMB 3,338.7 million and current liabilities of approximately RMB 2,782.7 million[76][79]. Employee and Operational Metrics - As of June 30, 2025, the Group had 2,465 full-time employees, a decrease from 2,542 employees as of June 30, 2024, representing a reduction of approximately 3.0%[101]. - The employee costs for the review period amounted to RMB 204.6 million, an increase of 6.2% compared to RMB 192.6 million for the six months ended June 30, 2024[101]. - The ratio of male to female employees was 65.3% and 34.7% respectively, compared to 63.8% and 36.2% in 2024[101]. Related Party Transactions - The company holds a 40% shareholding interest in a related company, with its director being the son of Mr. Fang Jin, the controlling shareholder[200]. - The company has a 24.48% shareholding interest in Fujian Scud Power Technology Co., Ltd.[200]. - The company’s related party transactions include a training expense that significantly decreased year-over-year, indicating a potential shift in strategy or reduced training needs[196]. - The company continues to maintain significant financial guarantees from its controlling shareholder, reflecting ongoing support for its subsidiaries[197]. - The overall trend in related party transactions shows a mix of decreased sales and reduced expenses, suggesting a need for strategic reassessment[196].

(於香港註冊成立之有限公司) 股份代號 : 882 中期報告 2025 (Incorporated in Hong Kong with limited liability) 2025 Interim Report Stock Code : 882 2025 目錄 | 公司資料 | 2 | | --- | --- | | 業務架構 | 3 | | 簡明綜合損益表 | 5 | | 簡明綜合損益及其他全面收益表 | 6 | | 簡明綜合財務狀況表 | 7 | | 簡明綜合權益變動表 | 9 | | 簡明綜合現金流量表 | 10 | | 簡明綜合財務報表附註 | 11 | | 管理層討論及分析 | 39 | | 其他資料 | 47 | | 簡明綜合財務報表的審閱報告 | 53 | 公司資料 董事會 執行董事 滕 飛先生 （主席） 翟欣翔博士 （總經理） 夏濱輝先生 非執行董事 孫利軍先生 獨立非執行董事 伍綺琴女士 黃紹開先生 樓家強先生 冼漢廸先生 授權代表 滕 飛先生 翟欣翔博士 公司秘書 李雪夷小姐 獨立核數師 德勤 • 關黃陳方會計師行 註冊公眾利益實體核數師 法律顧問 胡關李羅律師行 註冊辦事處 香港 干諾 ...

中 期 報 告 COOLPAD GROUP LIMITED 酷派集團有限公 司 (股份代號：2369) ( 於開曼群島註冊成立的有限公司 ) 目錄 | 公司簡介 | 2 | | --- | --- | | 公司資料 | 3 | | 財務概要 | 4 | | 管理層討論與分析 | 5 | | 簡明綜合財務報表審閱報告 | 24 | | 簡明綜合財務報表 | 26 | | 簡明綜合財務資料附註 | 33 | 公司 簡介 酷派集團有限公司（「本公司」），於二零零二年六月十一日在開曼群島註冊成立為獲豁免有限公司，本公司股份（「股份」）於 二零零四年十二月九日在香港聯合交易所有限公司（「聯交所」）上市（股份代號：2369）。 本公司及其附屬公司（統稱「本集團」）致力於成為中華人民共和國（「中國」）領先的智能手機開發商及製造商。過去十幾年 來，本集團憑藉在無線通訊科技開發方面對各種無線通訊網絡標準包括TD-LTE、FDD-LTE、TD-SCDMA、CDMA-EVDO、 WCDMA、GSM及CDMA1X網絡的專業知識，開發了許多有關手機操作系統、無線電頻率、通訊協定及無線數據解壓縮傳 輸技術的專有技術及專利權，是通訊行業標 ...

目錄 | 公司資料 | 2 | | --- | --- | | 財務摘要 | 4 | | 管理層討論與分析 | 5 | | 企業管治及其他資料 | 19 | | 中期簡明綜合損益表 | 24 | | 中期簡明綜合全面收益表 | 25 | | 中期簡明綜合財務狀況表 | 26 | | 中期簡明綜合權益變動表 | 28 | | 中期簡明綜合現金流量表 | 29 | | 中期簡明綜合財務資料附註 | 31 | | 釋義 | 45 | 1 雙登集團股份有限公司 中期報告 2025 頁次 公司資料 董事會 執行董事 楊銳博士 （主席兼首席執行官） 楊寶峰博士 賀蓉女士 非執行董事 錢善高先生 獨立非執行董事 殷俊明博士 王進博士 王熹博士 審核委員會 殷俊明博士 （主席） 王進博士 錢善高先生 薪酬委員會 王進博士 （主席） 楊銳博士 殷俊明博士 提名委員會 王進博士 （主席） 殷俊明博士 楊銳博士 戰略委員會 楊銳博士 （主席） 楊寶峰博士 王熹博士 聯席公司秘書 賀蓉女士 譚家龍先生 授權代表 賀蓉女士 譚家龍先生 法律顧問 關於香港法例及美國法律： 美邁斯律師事務所 香港 干諾道中 1 號 友邦金融中心31 樓 ...