Gynaecology and Paediatric Medicines 婦兒藥物 Kidney Medicines 腎科藥物 Contrast Medium 對比劑 Dermatologic Medicines 皮膚科藥物 Interim Report 2025 中期報告 Orthopedics Medicines 骨科藥物 Hepatobiliary Medicines 肝膽藥物 Gastroenterology Medicines 消化系統藥物 Contents 目錄 | Corporate Information | 2 | 公司資料 | | --- | --- | --- | | Financial Highlights | 6 | 財務摘要 | | Management Discussion and Analysis | 7 | 管理層討論及分析 | | Consolidated Statement of Profit or Loss | 21 | 綜合損益表 | | Consolidated Statement of Profit or Loss and Other Comprehensive ...

2025 中期報告 目錄 | 公司資料 | 2 | | --- | --- | | 管理層討論與分析 | 4 | | 其他資料 | 23 | | 獨立審閱報告 | 27 | | 中期簡明綜合損益及其他綜合收益表 | 29 | | 中期簡明綜合財務狀況表 | 31 | | 中期簡明權益變動表 | 33 | | 中期簡明綜合現金流量表 | 35 | | 中期簡明綜合財務資料附註 | 38 | | 釋義 | 56 | 奧克斯電氣有限公 司 股份代號：2580 （根據開曼群島法律註冊成立的有限公司） 1 奥克斯电气有限公司 公司資料 董事會 執行董事 鄭堅江先生 （主席） 忻寧先生 （總裁） 非執行董事 鄭江先生 何錫萬先生 李健女士 荊嫻博士 （主席） 李健女士 陶勝文先生 授權代表 忻寧先生 劉綺華女士 聯席公司秘書 獨立非執行董事 項偉先生 荊嫻博士 陶勝文先生 審核委員會 項偉先生 （主席） 荊嫻博士 李健女士 薪酬委員會 項偉先生 （主席） 李健女士 陶勝文先生 提名委員會 張波先生 劉綺華女士 （香港公司治理公會及英國特許公司治理公會會士） 核數師 安永會計師事務所 執業會計師 註冊公眾利益實體核數師 香 ...

[Company Information](index=3&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) This chapter details the company's board composition, key committees, and essential corporate information including auditors, legal advisors, and stock exchange listings [Board of Directors and Corporate Structure](index=3&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E5%8F%8A%E5%85%AC%E5%8F%B8%E6%9E%B6%E6%A7%8B) This chapter details the company's board composition, key committees, and essential corporate information including auditors, legal advisors, and stock exchange listings - The Board of Directors comprises executive directors (Mr. Liu Liqiang as Chairman), non-executive directors, and independent non-executive directors, with an Audit Committee (Mr. Wong Hok Pan as Chairman), Remuneration Committee (Mr. Wang Jianfeng as Chairman), and Nomination Committee (Mr. Zhu Guoshan as Chairman)[5](index=5&type=chunk) - The company's auditor is PricewaterhouseCoopers, legal counsel is Sidley Austin, and compliance advisor is Guolian Securities International Capital Markets Co., Ltd[5](index=5&type=chunk) - The company's stock codes are HKEX: **3858**, AIX: **JXIR**, and its official website is www.jiaxinir.com[6](index=6&type=chunk) [Management Discussion and Analysis](index=4&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) This section provides an overview of the Group's business, operational activities, financial performance, liquidity, and future plans, highlighting key achievements and challenges [Business Review](index=4&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group is a Kazakhstan-based tungsten mining company primarily developing the Bakuta Tungsten Mine Project, which commenced commercial production in April 2025 - The Group is a tungsten mining company based in Kazakhstan, focused on developing the Bakuta Tungsten Mine Project[7](index=7&type=chunk) - As of December 31, 2024, the Bakuta Tungsten Mine is the world's largest open-pit tungsten mine by tungsten trioxide (WO3) mineral resources, the fourth largest WO3 mineral resources tungsten mine globally (including open-pit and underground), and possesses the largest designed tungsten mining capacity for a single tungsten mine[7](index=7&type=chunk) - The Bakuta Tungsten Mine Project commenced Phase I commercial production in April 2025, with a target annual mining and mineral processing capacity of **3.3 million tonnes** of tungsten ore in 2025[7](index=7&type=chunk) - The Group holds exclusive mining rights for the Bakuta Tungsten Mine for **25 years**, from June 2, 2015, to June 2, 2040[8](index=8&type=chunk) [Exploration, Development and Mining Production Activities](index=4&type=section&id=%E5%8B%98%E6%8E%A2%E3%80%81%E9%96%8B%E7%99%BC%E5%8F%8A%E9%96%8B%E6%8E%A1%E7%94%A2%E6%B4%BB%E5%8B%95) During the reporting period, the Group did not conduct exploration or development activities but commenced mining production, extracting 1,002,231 tonnes of tungsten ore - During the reporting period, the Group did not conduct any exploration or development activities for the Bakuta Tungsten Mine Project[9](index=9&type=chunk)[10](index=10&type=chunk) Mining Production Activities for H1 2025 | Metric | Quantity | | :--- | :--- | | Tungsten ore mined | 1,002,231 tonnes | | Tungsten concentrate produced | 1,520.67 tonnes | | Tungsten trioxide produced | 783.41 tonnes | Mining Production Activities Costs for H1 2025 | Cost Category | Amount (thousand HKD) | | :--- | :--- | | Consumables cost | 95,329 | | Stripping cost | 44,656 | | Energy cost | 16,566 | | Employee benefits expense | 8,626 | | Changes in finished goods and work-in-progress | (90,244) | | Depreciation | 24,725 | | Amortization | 69 | | Transportation and delivery costs | 774 | | Others | 7,831 | | **Total** | **108,332** | [Prospects and Future Plans](index=5&type=section&id=%E5%89%8D%E6%99%AF%E5%8F%8A%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) The Group plans to continue developing the Bakuta Tungsten Mine Project into a world-class operation and explore further non-ferrous metal investment opportunities in Central Asia - The Group plans to continue developing the Bakuta Tungsten Mine Project into a world-class tungsten mining project in the second half of 2025[13](index=13&type=chunk) - The target annual mining and mineral processing capacity for tungsten ore is planned to increase to **4.95 million tonnes** by 2027, integrating an ore sorting system at that time[13](index=13&type=chunk) - The Group also plans to explore more investment opportunities in non-ferrous metal resources in Central Asia[13](index=13&type=chunk) [Financial Review](index=5&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group generated its first revenue of 126.3 million HKD and a gross profit of 18.0 million HKD after commencing commercial production in April 2025, significantly reducing its net loss to 7.0 million HKD - The Group commenced commercial production in April 2025, generating its first revenue of **126.3 million HKD**, primarily from the sale of tungsten concentrate[14](index=14&type=chunk) - Sales costs of **108.3 million HKD** were recorded, resulting in a gross profit of **18.0 million HKD** and a gross margin of **14.2%**[15](index=15&type=chunk)[17](index=17&type=chunk) - Administrative expenses increased by **82.2%** from **33.2 million HKD** in the prior period to **60.5 million HKD**, mainly due to increased employee benefits expenses from new hires (**31.3 million HKD**) and higher listing expenses (**13.5 million HKD**)[18](index=18&type=chunk) - Net loss for the period significantly decreased from **65.0 million HKD** in the prior period to **7.0 million HKD**, primarily due to an income tax credit of **82.6 million HKD** arising from the recognition of deferred tax assets[21](index=21&type=chunk)[22](index=22&type=chunk) [Liquidity, Financial and Capital Resources](index=6&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E3%80%81%E8%B2%A1%E5%8B%99%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E6%BA%90) The Group funds operations through bank borrowings, shareholder loans, and internal funds, with net current liabilities increasing to 442.9 million HKD as of June 30, 2025 - The Group primarily finances its working capital and other liquidity needs through bank borrowings, shareholder loans, and internal funds[23](index=23&type=chunk) Net Current Liabilities | Date | Amount (thousand HKD) | | :--- | :--- | | June 30, 2025 | 442.9 | | December 31, 2024 | 268.9 | - The increase in net current liabilities was primarily attributable to an increase in contract liabilities of **133.6 million HKD** and an increase in borrowings of **94.5 million HKD**, partially offset by increases in inventories and trade payables[24](index=24&type=chunk) Cash Flow Summary (Six Months Ended June 30, 2025) | Activity Type | Net Cash (thousand HKD) | | :--- | :--- | | Operating activities | 15.6 (inflow) | | Investing activities | (21.5) (outflow) | | Financing activities | 1.6 (inflow) | Cash and Cash Equivalents | Date | Amount (thousand HKD) | | :--- | :--- | | June 30, 2025 | 32.7 | | December 31, 2024 | 41.4 | [Borrowings](index=7&type=section&id=%E5%80%9F%E6%AC%BE) The Group's borrowings, primarily Euro and RMB-denominated bank loans, increased by 12.7% to 1,895.1 million HKD as of June 30, 2025, with varying interest rates and a final repayment date in June 2028 - The Group's borrowings refer to Euro and RMB-denominated bank loans, primarily used for the construction of the Bakuta Tungsten Mine Project[27](index=27&type=chunk) Borrowing Interest Rates (As of June 30, 2025) | Amount (thousand HKD) | Interest Rate | | :--- | :--- | | 362.7 | 1% fixed annual interest rate | | 1,302.8 | 3.488% - 5.013% floating annual interest rate | | 1,302.8 | 3.017% - 4.023% floating annual interest rate | - The principal of the Group's outstanding borrowings is repayable semi-annually, with the final repayment due on June 14, 2028[27](index=27&type=chunk) - The Group's current and non-current borrowings increased by **12.7%** from **1,665.0 million HKD** as of December 31, 2024, to **1,895.1 million HKD** as of June 30, 2025[27](index=27&type=chunk) [Financial Risks](index=8&type=section&id=%E8%B2%A1%E5%8B%99%E9%A2%A8%E9%9A%AA) The Group faces credit, liquidity, foreign exchange, and interest rate risks, which management continuously monitors and mitigates through various strategies - The Group faces credit risk, liquidity risk, foreign exchange risk, and interest rate risk, which management continuously monitors to ensure a balance between risk and control[28](index=28&type=chunk) - Credit risk primarily arises from trade receivables, other receivables, and cash and cash equivalents, with management deeming the risk of counterparty default to be extremely low[29](index=29&type=chunk) - Liquidity risk is managed through adequate financial support from the holding company and by maintaining sufficient cash and cash equivalents[30](index=30&type=chunk) - Foreign exchange risk is managed by regularly reviewing net foreign exchange exposure and entering into forward foreign exchange contracts when necessary (none were entered into during the period); interest rate risk is managed by closely monitoring interest rate trends and considering hedging when necessary[31](index=31&type=chunk)[32](index=32&type=chunk) [Pledge of Assets](index=8&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group had no pledged assets, consistent with the situation on December 31, 2024 - As of June 30, 2025, the Group had no pledged assets (December 31, 2024: nil)[33](index=33&type=chunk) [Gearing Ratio and Basis of Calculation](index=9&type=section&id=%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87%E5%8F%8A%E8%A8%88%E7%AE%97%E5%9F%BA%E6%BA%96) The Group's gearing ratio, calculated as net debt divided by total capital, slightly increased to 101.6% as of June 30, 2025, due to increased borrowings and accumulated losses Gearing Ratio | Date | Ratio | | :--- | :--- | | June 30, 2025 | 101.6% | | December 31, 2024 | 100.8% | - The slight increase in the gearing ratio was primarily due to increased borrowings and an increase in accumulated losses resulting from the loss incurred during the period[79](index=79&type=chunk) [Commitments and Contingent Liabilities](index=9&type=section&id=%E6%89%BF%E6%93%94%E5%8F%8A%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had capital expenditure commitments of 145.5 million HKD for the Bakuta Tungsten Mine Project and operating lease commitments of 0.3 million HKD - As of June 30, 2025, the Group had capital expenditure commitments of **145.5 million HKD** contracted but not yet recognized in the condensed consolidated financial statements[35](index=35&type=chunk) - The Group leases offices under non-cancellable operating lease arrangements, with total future minimum lease payments amounting to **0.3 million HKD**[35](index=35&type=chunk) - As of June 30, 2025, the Group had no other significant commitments or contingent liabilities related to any third-party payment obligations[36](index=36&type=chunk) [Off-balance Sheet Arrangements](index=9&type=section&id=%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E8%A1%A8%E5%A4%96%E5%AE%89%E6%8E%92) The Group confirms it has not entered into any off-balance sheet arrangements or commitments to guarantee third-party payment obligations, nor does it hold variable interests in unconsolidated entities - The Group has not entered into any off-balance sheet arrangements or commitments to guarantee payment obligations of any third parties or related parties[37](index=37&type=chunk) - The Group does not hold any variable interests in any unconsolidated entities that provide financing, liquidity, market risk, or credit support to the Group, or engage in leasing, hedging, or research and development services with the Group[37](index=37&type=chunk) [Use of Proceeds from Initial Public Offering](index=9&type=section&id=%E9%A6%96%E6%AC%A1%E5%85%AC%E9%96%8B%E7%99%BC%E5%94%AE%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%85%E7%94%A8%E9%80%94) The Group's IPO net proceeds of approximately 1,261.3 million HKD are allocated for capital costs of the Bakuta Tungsten Mine Project, APT production capacity development, bank loan repayment, and working capital, expected to be fully utilized by 2027 - The total net proceeds from the listing and exercise of the over-allotment option amounted to approximately **1,261.3 million HKD**[38](index=38&type=chunk) Status of Use of Proceeds from IPO (As of Reporting Date) | Purpose | Percentage of Net Proceeds as per Prospectus | Unutilized Net Proceeds Post-Listing (million HKD) (including over-allotment option) | Expected Timeline for Full Utilization of Net Proceeds | | :--- | :--- | :--- | :--- | | Funding capital costs for Bakuta Tungsten Mine Project development - Tailings storage facility | 17.5% | 220.7 | 2026 | | Funding capital costs for Bakuta Tungsten Mine Project development - Concentrator plant | 27.5% | 346.9 | 2026 | | Funding establishment of ore sorting system for Phase II commercial production | 10.0% | 126.1 | 2027 | | Developing Ammonium Paratungstate (APT) production capacity - Preliminary design | 6.0% | 75.7 | 2027 | | Developing Ammonium Paratungstate (APT) production capacity - Market research | 2.0% | 25.2 | 2027 | | Developing Ammonium Paratungstate (APT) production capacity - Feasibility study | 1.0% | 12.6 | 2027 | | Developing Ammonium Paratungstate (APT) production capacity - Miscellaneous expenses | 1.0% | 12.6 | 2027 | | Repayment of principal and accrued interest for part of our Euro-denominated bank loans | 25.0% | 315.3 | 2027 | | Working capital and other general corporate purposes | 10.0% | 126.1 | 2027 | | **Total** | **100.0%** | **1,261.3** | | - As of the date of this report, the net proceeds have not yet been utilized[40](index=40&type=chunk) [Employees and Remuneration Policy](index=11&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group had 347 employees with staff costs of approximately 39.96 million HKD, participating in defined contribution retirement benefit plans and receiving discretionary bonuses Number of Employees and Staff Costs | Date | Number of Employees | Staff Costs (thousand HKD) | | :--- | :--- | :--- | | June 30, 2025 | 347 | 39,960 | | June 30, 2024 | 150 | 14,370 | - The Company participates in several defined contribution retirement benefit plans applicable to all relevant employees[41](index=41&type=chunk) - The Company accrues discretionary bonuses for its employees based on their years of service, expected to be settled within twelve months[41](index=41&type=chunk) [Significant Investments Held, Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=11&type=section&id=%E6%8C%81%E6%9C%89%E7%9A%84%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E3%80%81%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E3%80%81%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%90%88%E7%87%9F%E4%BC%81%E6%A5%AD) During the reporting period, the Group did not undertake any significant investments, material acquisitions, or disposals of subsidiaries, associates, or joint ventures - During the period, the Group had no significant investments, material acquisitions, or disposals of subsidiaries, associates, or joint ventures[42](index=42&type=chunk) [Future Plans for Material Investments or Capital Assets](index=11&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E6%88%96%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E7%9A%84%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) As of June 30, 2025, the Group had no future plans for material investments or capital assets other than those disclosed in the prospectus - Other than those disclosed in the "Future Plans and Use of Proceeds" section of the prospectus, as of June 30, 2025, the Group had no other future plans for material investments and capital assets[43](index=43&type=chunk) [Interim Dividend](index=11&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board resolved not to declare any interim dividend for the six months ended June 30, 2025, consistent with the prior corresponding period - The Board resolved not to declare any interim dividend for the period (six months ended June 30, 2024: nil)[44](index=44&type=chunk) [Corporate Governance and Other Information](index=12&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) This section covers the Group's corporate governance practices, including directors' securities dealings, compliance with the Corporate Governance Code, and post-reporting period events [Standard Securities Dealing Code for Directors](index=12&type=section&id=%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The Standard Securities Dealing Code for Directors was not applicable during the reporting period as the company's shares were not yet listed on the Stock Exchange as of June 30, 2025 - As the Company's shares were not yet listed on the Stock Exchange as of June 30, 2025, the Standard Code was not applicable to the Company during the period[45](index=45&type=chunk) [Compliance with Corporate Governance Code](index=12&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The Corporate Governance Code was not applicable during the reporting period as the company's shares were listed on the Stock Exchange only on August 28, 2025, and will apply from that date - As the shares were listed on the Stock Exchange on August 28, 2025, and the Company was not a listed company during the period, the Corporate Governance Code was not applicable to the Company during the period but will apply from the listing date[46](index=46&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=12&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) Neither the Company nor its subsidiaries purchased, sold, or redeemed any of its listed securities during the reporting period, as the shares were not yet listed as of June 30, 2025 - As the shares were not yet listed on the Stock Exchange as of June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the six months ended June 30, 2025[47](index=47&type=chunk) - As of June 30, 2025, the Company had no treasury shares[47](index=47&type=chunk) [Significant Events After Reporting Period](index=12&type=section&id=%E6%9C%9F%E5%BE%8C%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A0%85) Subsequent to the reporting period, the company's shares commenced trading on the Stock Exchange on August 28, 2025, raising approximately 1,261.3 million HKD in net proceeds from the global offering and over-allotment option - The Company's shares commenced trading on the Stock Exchange on August 28, 2025[48](index=48&type=chunk) - The listing involved the issuance of **109,808,800** new shares at **10.92 HKD** per share, with total net proceeds of **1,087.7 million HKD**[48](index=48&type=chunk) - The over-allotment option under the global offering was fully exercised, resulting in the issuance of an additional **16,471,200** shares, with total net proceeds of **173.6 million HKD**[48](index=48&type=chunk) - Save as disclosed above, no other significant events affecting the Group have occurred from June 30, 2025, up to the date of this announcement[49](index=49&type=chunk) [Changes in Information of Directors and Chief Executive](index=12&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%E8%B3%87%E6%96%99%E8%AE%8A%E6%9B%B4) As of the report date, there were no changes in the directors' information required to be disclosed under Listing Rule 13.51(2)(a) to (e) and (g) - As of the date of this report, there were no changes in the directors' information required to be disclosed under paragraphs (a) to (e) and (g) of Rule 13.51(2) of the Listing Rules[50](index=50&type=chunk) [Interests of Directors and Chief Executive](index=12&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%AC%8A%E7%9B%8A) As the company's shares were not listed as of June 30, 2025, relevant disclosure provisions of the Securities and Futures Ordinance were not applicable, and interests will be disclosed in the upcoming annual report - As the shares were not listed on the Stock Exchange as of June 30, 2025, Sections 7 and 8 of Part XV of the Securities and Futures Ordinance, Section 352, and the Standard Code were not applicable to the Company's directors or chief executive as of that date[51](index=51&type=chunk) - The Company will disclose the interests or short positions of directors and the chief executive in the shares, underlying shares, and debentures of the Company or its associated corporations in the Company's upcoming annual report[51](index=51&type=chunk) [Interests of Substantial Shareholders and Other Persons](index=13&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E5%8F%8A%E5%85%B6%E4%BB%96%E4%BA%BA%E5%A3%AB%E6%AC%8A%E7%9B%8A) As the company's shares were not listed as of June 30, 2025, relevant disclosure provisions of the Securities and Futures Ordinance were not applicable, and interests will be disclosed in the upcoming annual report - As the shares were not listed on the Stock Exchange as of June 30, 2025, Sections 2 and 3 of Part XV of the Securities and Futures Ordinance and Section 336 were not applicable to the Company as of that date[52](index=52&type=chunk) - The Company will disclose the interests or short positions of relevant persons (other than the Company's directors and chief executive) in the shares and underlying shares in the Company's upcoming annual report[52](index=52&type=chunk) [Audit Committee and Review of Interim Financial Information](index=13&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83%E5%8F%8A%E5%AF%A9%E9%96%B1%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99) The Audit Committee has reviewed and agreed to the Group's unaudited condensed consolidated interim financial information and this report for the reporting period - The Audit Committee, comprising one non-executive director and two independent non-executive directors, has reviewed and agreed to the Group's unaudited condensed consolidated interim financial information and this report for the period[53](index=53&type=chunk) [Condensed Consolidated Statement of Comprehensive Loss](index=14&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E8%99%A7%E6%90%8D%E8%A1%A8) This section presents the Group's financial performance, including revenue, costs, and net loss, for the reporting period [For the Six Months Ended June 30, 2025](index=14&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E8%99%A7%E6%90%8D%E8%A1%A8-2025%E5%B9%B46%E6%9C%8830%E6%97%A5) The Group recorded its first revenue of 126.3 million HKD and a gross profit of 18.0 million HKD, significantly narrowing its loss to 6.989 million HKD due to an income tax credit Condensed Consolidated Statement of Comprehensive Loss (Six Months Ended June 30) | Metric | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | | :--- | :--- | :--- | :--- | | Revenue | 126,313 | – | 126,313 | | Cost of sales | (108,332) | – | (108,332) | | Gross profit | 17,981 | – | 17,981 | | Administrative expenses | (60,499) | (33,241) | (27,258) | | Other net losses | (27,200) | (30,158) | 2,958 | | Operating loss | (69,718) | (63,399) | (6,319) | | Net finance costs | (19,837) | (1,570) | (18,267) | | Income tax credit | 82,566 | – | 82,566 | | **Loss for the period** | **(6,989)** | **(64,969)** | **57,980** | | Total comprehensive loss for the period | (16,807) | (59,254) | 42,447 | | Loss attributable to owners of the Company | (5,996) | (63,617) | 57,621 | | Basic and diluted loss per share (HK cents) | (1.82) | (19.31) | 17.49 | - Loss for the period significantly decreased from **64.969 million HKD** in the prior corresponding period of 2024 to **6.989 million HKD** in 2025, primarily due to the commencement of commercial production generating revenue and the recognition of an income tax credit[55](index=55&type=chunk) - Basic and diluted loss per share improved from **(19.31) HK cents** in 2024 to **(1.82) HK cents** in 2025[55](index=55&type=chunk) [Condensed Consolidated Statement of Financial Position](index=15&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) This section presents the Group's financial position, including assets, liabilities, and equity, as of the reporting date [As of June 30, 2025](index=15&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8-2025%E5%B9%B46%E6%9C%8830%E6%97%A5) As of June 30, 2025, total assets increased to 2,298.7 million HKD, total liabilities rose to 2,328.6 million HKD, and net current liabilities expanded to 442.9 million HKD Condensed Consolidated Statement of Financial Position (As of June 30) | Metric | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Total non-current assets | 2,080,961 | 1,772,955 | 308,006 | | Total current assets | 217,737 | 91,893 | 125,844 | | **Total assets** | **2,298,698** | **1,864,848** | **433,850** | | **Deficit** | | | | | Equity attributable to owners of the Company | (22,856) | (7,327) | (15,529) | | Non-controlling interests | (7,038) | (5,760) | (1,278) | | **Total deficit** | **(29,894)** | **(13,087)** | **(16,807)** | | **Liabilities** | | | | | Total non-current liabilities | 1,667,911 | 1,517,094 | 150,817 | | Total current liabilities | 660,681 | 360,841 | 299,840 | | **Total liabilities** | **2,328,592** | **1,877,935** | **450,657** | | **Net current liabilities** | **(442,944)** | **(268,948)** | **(173,996)** | - Total assets increased by **433.85 million HKD**, primarily due to increases in property, plant and equipment and deferred tax assets[56](index=56&type=chunk) - Total liabilities increased by **450.66 million HKD**, mainly due to increases in borrowings and contract liabilities[58](index=58&type=chunk) - Net current liabilities increased from **268.95 million HKD** as of December 31, 2024, to **442.94 million HKD** as of June 30, 2025[58](index=58&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=16&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) This section outlines the changes in the Group's equity (deficit) during the reporting period, reflecting the impact of losses and exchange differences [For the Six Months Ended June 30, 2025](index=16&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8-2025%E5%B9%B46%E6%9C%8830%E6%97%A5) The Group's total equity (deficit) increased from (13.087) million HKD to (29.894) million HKD, primarily due to the loss for the period and negative exchange differences Condensed Consolidated Statement of Changes in Equity (Six Months Ended June 30) | Metric | June 30, 2025 (thousand HKD) | January 1, 2025 (thousand HKD) | Change (thousand HKD) | | :--- | :--- | :--- | :--- | | Share capital | 465,653 | 465,653 | 0 | | Exchange differences | 9,271 | 18,804 | (9,533) | | Accumulated losses | (497,780) | (491,784) | (5,996) | | Total attributable to owners of the Company | (22,856) | (7,327) | (15,529) | | Non-controlling interests | (7,038) | (5,760) | (1,278) | | **Total equity / (deficit)** | **(29,894)** | **(13,087)** | **(16,807)** | - Total equity (deficit) increased from **(13.087) million HKD** as of January 1, 2025, to **(29.894) million HKD** as of June 30, 2025, primarily due to the loss for the period and negative exchange differences[59](index=59&type=chunk) [Condensed Consolidated Statement of Cash Flows](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) This section presents the Group's cash flows from operating, investing, and financing activities for the reporting period [For the Six Months Ended June 30, 2025](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%A8-2025%E5%B9%B46%E6%9C%8830%E6%97%A5) The Group generated net cash from operating activities of 15.554 million HKD, with net cash outflows from investing activities of 21.448 million HKD and net cash inflows from financing activities of 1.567 million HKD Condensed Consolidated Statement of Cash Flows (Six Months Ended June 30) | Activity Type | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | | :--- | :--- | :--- | :--- | | Net cash from / (used in) operating activities | 15,554 | (27,788) | 43,342 | | Net cash used in investing activities | (21,448) | (225,355) | 203,907 | | Net cash from / (used in) financing activities | 1,567 | (33,541) | 35,108 | | Net change in cash and cash equivalents | (4,327) | (286,684) | 282,357 | | Cash and cash equivalents at end of period | 32,662 | 173,225 | (140,563) | - Net cash from operating activities was **15.554 million HKD**, a significant improvement from a net outflow of **27.788 million HKD** in the prior corresponding period[61](index=61&type=chunk) - Net cash used in investing activities significantly decreased to **21.448 million HKD**, primarily due to reduced additions to property, plant and equipment and capitalized interest expenses[25](index=25&type=chunk)[61](index=61&type=chunk) - Net cash from financing activities was **1.567 million HKD**, mainly from proceeds from borrowings, partially offset by interest paid and repayment of borrowings[25](index=25&type=chunk)[61](index=61&type=chunk) - Cash and cash equivalents at the end of the period amounted to **32.662 million HKD**, a decrease from **41.440 million HKD** at the beginning of the period[26](index=26&type=chunk)[61](index=61&type=chunk) [Notes to the Interim Financial Information](index=19&type=section&id=%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) This section provides detailed explanations and disclosures regarding the Group's interim financial information, including accounting policies, financial risks, and significant events [1 General Information](index=19&type=section&id=1%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) The Company, incorporated in Hong Kong in 2014, primarily engages in the exploration, development, and operation of the Bakuta Tungsten Mine in Kazakhstan, with shares listed on HKEX and AIX on August 28, 2025 - Jiaxin International Resources Investment Limited was incorporated in Hong Kong on August 29, 2014[62](index=62&type=chunk) - The Group is primarily engaged in the exploration, development, and operation of the Bakuta Tungsten Mine in Kazakhstan[62](index=62&type=chunk) - For the six months ended June 30, 2025, the Group substantially completed the construction of mining infrastructure for the Bakuta Tungsten Mine and commenced commercial production and sale of tungsten concentrate[62](index=62&type=chunk) - The Company's shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited and Astana International Exchange on August 28, 2025[62](index=62&type=chunk) [2 Basis of Preparation](index=19&type=section&id=2%20%E6%93%AC%E5%82%99%E5%9F%BA%E6%BA%96) The interim financial information is prepared in accordance with HKAS 34 on a going concern basis, despite net current liabilities and deficit, as management expects sufficient financial resources from projected cash flows and IPO proceeds - The interim financial information has been prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants[63](index=63&type=chunk) - Despite a net loss of **6.989 million HKD**, net current liabilities of **442.944 million HKD**, and a net deficit of **29.894 million HKD** as of June 30, 2025, the interim financial information is prepared on a going concern basis[63](index=63&type=chunk) - The directors have considered projected cash flows and funds raised from the issuance of new shares, concluding that the Group has sufficient financial resources to meet its financial obligations in the foreseeable future[63](index=63&type=chunk) - HKFRS 18 will replace HKAS 1, introducing new requirements expected to have a widespread impact on presentation and disclosure, effective January 1, 2027[69](index=69&type=chunk) [3 Critical Accounting Estimates and Judgements](index=20&type=section&id=3%20%E9%87%8D%E8%A6%81%E6%9C%83%E8%A8%88%E4%BC%B0%E8%A8%88%E5%8F%8A%E5%88%A4%E6%96%B7) The significant judgments made by management and key sources of estimation uncertainty in applying the Group's accounting policies for these interim financial statements are consistent with those applied in the 2024 financial statements - The significant judgments made by management and key sources of estimation uncertainty in applying the Group's accounting policies when preparing this interim financial information are consistent with those applied in the 2024 financial statements[70](index=70&type=chunk) [4 Financial Risk Management](index=21&type=section&id=4%20%E8%B2%A1%E5%8B%99%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86) The Group's risk management policies remained unchanged, addressing foreign exchange risk (Euro, RMB, USD, Tenge) and capital risk, with the gearing ratio slightly increasing due to higher borrowings and expanded deficit - For the six months ended June 30, 2025, there were no significant changes in the Group's risk management policies[72](index=72&type=chunk) - The Group's foreign currency transactions are primarily denominated in Euro, RMB, USD, and Kazakhstan Tenge; the functional currency of the main subsidiary operating the Bakuta Tungsten Mine has been changed to RMB[73](index=73&type=chunk) Net Monetary Assets / (Liabilities) (thousand HKD) | Currency | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Euro to HKD | 129,713 | 62,415 | | RMB to HKD | (72,462) | 15,558 | | USD to HKD | 222,919 | 216,078 | | Euro to RMB | (1,842,546) | Not applicable | | USD to RMB | (244,873) | Not applicable | | Tenge to RMB | (85,296) | Not applicable | - The gearing ratio (calculated as net debt divided by total capital) increased from **101%** as of December 31, 2024, to **102%** as of June 30, 2025, primarily due to increased borrowings and an increase in accumulated losses resulting from the loss incurred during the period[79](index=79&type=chunk) - As of June 30, 2025, and December 31, 2024, the Group had no financial instruments measured at fair value in the consolidated statement of financial position[80](index=80&type=chunk) [5 Segment Information and Revenue](index=24&type=section&id=5%20%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99%E5%8F%8A%E6%94%B6%E5%85%A5) The Group operates as a single segment in tungsten mining in Kazakhstan, with all 126.313 million HKD revenue for the six months ended June 30, 2025, derived from tungsten concentrate sales to a single customer - The Group is primarily engaged in tungsten mining exploration, development, and extraction in Kazakhstan, and is reviewed as a single operating segment[81](index=81&type=chunk) - For the six months ended June 30, 2025, all of the Group's revenue of **126.313 million HKD** was derived from the sale of tungsten concentrate to a single customer[83](index=83&type=chunk) - Revenue is recognized when control of the goods is transferred to the customer, typically upon delivery of the goods and transfer of legal title to the customer[85](index=85&type=chunk) [6 Expenses by Nature](index=25&type=section&id=6%20%E6%8C%89%E6%80%A7%E8%B3%AA%E5%8A%83%E5%88%86%E7%9A%84%E9%96%8B%E6%94%AF) The Group's total expenses for the six months ended June 30, 2025, significantly increased to 168.831 million HKD, primarily due to costs associated with commercial production Expenses by Nature (Six Months Ended June 30) | Expense Category | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Consumables cost | 93,670 | – | | Stripping cost | 44,656 | – | | Energy cost | 16,566 | – | | Employee benefits expense | 39,956 | 14,367 | | Changes in finished goods and work-in-progress | (90,244) | – | | Listing expenses | 13,462 | 7,450 | | Depreciation | 25,653 | 874 | | Amortization | 69 | – | | Transportation and delivery costs | 774 | – | | Others (miscellaneous) | 14,573 | 4,760 | | **Total** | **168,831** | **33,241** | - Total expenses significantly increased from **33.241 million HKD** in the prior corresponding period of 2024 to **168.831 million HKD** in 2025, primarily due to the incurrence of commercial production-related costs[86](index=86&type=chunk) - Employee benefits expense increased from **14.367 million HKD** to **39.956 million HKD**, and listing expenses increased from **7.450 million HKD** to **13.462 million HKD**[86](index=86&type=chunk) [7 Other Net Gains / (Losses)](index=25&type=section&id=7%20%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E2%88%95%EF%BC%88%E8%99%A7%E6%90%8D%EF%BC%89%E6%B7%A8%E9%A1%8D) The Group's other net losses for the six months ended June 30, 2025, decreased to 27.200 million HKD, primarily due to a reduction in net foreign exchange losses Other Net Gains / (Losses) (Six Months Ended June 30) | Metric | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | | :--- | :--- | :--- | :--- | | Net foreign exchange losses | (25,158) | (30,502) | 5,344 | | Others | (2,042) | 344 | (2,386) | | **Total** | **(27,200)** | **(30,158)** | **2,958** | - Other net losses decreased by **2.958 million HKD**, primarily due to a **5.344 million HKD** reduction in net foreign exchange losses[87](index=87&type=chunk) [8 Net Finance Costs](index=26&type=section&id=8%20%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC%E6%B7%A8%E9%A1%8D) The Group's net finance costs significantly increased to 19.837 million HKD for the six months ended June 30, 2025, as interest expenses and foreign exchange losses were no longer capitalized after the completion of mining asset construction Net Finance Costs (Six Months Ended June 30) | Metric | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | | :--- | :--- | :--- | :--- | | Finance income | 19 | 70 | (51) | | Interest expense | (34,997) | (37,892) | 2,895 | | Reversal of discount | (268) | (3,652) | 3,384 | | Net foreign exchange losses | (93,111) | – | (93,111) | | Less: Capitalized amount | 108,520 | 39,904 | 68,616 | | **Net finance costs** | **(19,837)** | **(1,570)** | **(18,267)** | - Net finance costs significantly increased from **1.570 million HKD** in the prior corresponding period of 2024 to **19.837 million HKD** in 2025[88](index=88&type=chunk) - For the six months ended June 30, 2025, the Group's mining asset construction was substantially completed, thus interest expenses and foreign exchange related to completed construction are no longer capitalized[89](index=89&type=chunk) [9 Income Tax](index=27&type=section&id=9%20%E6%89%80%E5%BE%97%E7%A8%85) The Group recognized an income tax credit of 82.566 million HKD for the six months ended June 30, 2025, due to deferred tax assets from tax losses, anticipating future taxable profits from commercial production - For the six months ended June 30, 2025, the Group recognized deferred tax assets of **82.566 million HKD** for tax losses carried forward, resulting in an income tax credit[90](index=90&type=chunk) - Management believes that future taxable profits are probable after the commencement of commercial production at the Bakuta Tungsten Mine, enabling the realization of related tax benefits[90](index=90&type=chunk) Applicable Income Tax Rates | Jurisdiction | Tax Rate | | :--- | :--- | | Hong Kong | 16.5% | | Kazakhstan | 20% | | China | 25% | | Luxembourg | 15% | [10 Loss Per Share](index=28&type=section&id=10%20%E6%AF%8F%E8%82%A1%E8%99%A7%E6%90%8D) Basic loss per share attributable to owners of the Company significantly improved to (1.82) HK cents for the six months ended June 30, 2025, with no potential dilutive ordinary shares Basic Loss Per Share (Six Months Ended June 30) | Metric | 2025 (thousand HKD / thousand shares / HK cents) | 2024 (thousand HKD / thousand shares / HK cents) | | :--- | :--- | :--- | | Loss attributable to owners of the Company | (5,996) | (63,617) | | Weighted average number of ordinary shares issued | 329,420 | 329,420 | | **Basic loss per share** | **(1.82)** | **(19.31)** | - Basic loss per share has been retrospectively adjusted for the effect of the share split on August 28, 2025, changing the number of shares from **11,765** to **329,420,000**[95](index=95&type=chunk) - There were no potential dilutive ordinary shares, and diluted loss per share was equal to basic loss per share[97](index=97&type=chunk) [11 Dividends](index=28&type=section&id=11%20%E8%82%A1%E6%81%AF) The Company neither paid nor declared any dividends for the six months ended June 30, 2025, and 2024 - For the six months ended June 30, 2025, and 2024, the Company neither paid nor declared any dividends[98](index=98&type=chunk) [12 Property, Plant and Equipment](index=29&type=section&id=12%20%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99) The Group's net book value of property, plant and equipment increased to 1,685.167 million HKD as of June 30, 2025, reflecting the reclassification of construction in progress and new additions Net Book Value of Property, Plant and Equipment (thousand HKD) | Metric | June 30, 2025 (thousand HKD) | January 1, 2025 (thousand HKD) | Change (thousand HKD) | | :--- | :--- | :--- | :--- | | Buildings and infrastructure | 1,329,808 | 8,314 | 1,321,494 | | Mining development assets | 108,481 | 83,720 | 24,761 | | Machinery | 192,376 | – | 192,376 | | Vehicles, computers and office equipment | 7,171 | 4,919 | 2,252 | | Construction in progress | 47,331 | 1,397,799 | (1,350,468) | | **Total** | **1,685,167** | **1,494,752** | **190,395** | - For the six months ended June 30, 2025, the Group substantially completed the construction of mining assets for the Bakuta Tungsten Mine infrastructure in Kazakhstan[101](index=101&type=chunk) - Total depreciation expense was **25.653 million HKD**, with **24.725 million HKD** charged to cost of sales and **928 thousand HKD** to administrative expenses[101](index=101&type=chunk) [13 Subsoil Use Rights](index=30&type=section&id=13%20%E5%BA%95%E5%9C%9F%E4%BD%BF%E7%94%A8%E6%AC%8A) The Group's net book value of subsoil use rights slightly increased to 10.187 million HKD as of June 30, 2025, primarily due to currency translation differences, partially offset by amortization Net Book Value of Subsoil Use Rights (thousand HKD) | Metric | June 30, 2025 (thousand HKD) | January 1, 2025 (thousand HKD) | | :--- | :--- | :--- | | Net book value | 10,187 | 10,075 | - Amortization expense for the period was **69 thousand HKD**[100](index=100&type=chunk) [14 Trade Receivables](index=31&type=section&id=14%20%E8%B2%A9%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, the Group's trade receivables amounted to 47.087 million HKD, all aged less than three months and primarily from tungsten concentrate sales, with no loss allowance recognized due to low default risk - As of June 30, 2025, trade receivables amounted to **47.087 million HKD**, all due from customers and aged less than three months[103](index=103&type=chunk) - Payments for tungsten concentrate sales are collected in two installments, with approximately **70%** received within a few days of delivery and the remainder within **15 days** after the final settlement invoice[102](index=102&type=chunk) - No loss allowance was recognized for trade receivables as the directors consider the risk of counterparty default to be insignificant[103](index=103&type=chunk) [15 Share Capital](index=32&type=section&id=15%20%E8%82%A1%E6%9C%AC) As of June 30, 2025, the Company had 11,765 issued and fully paid ordinary shares with a share capital of 465.653 million HKD, which was subsequently adjusted to 329,420,000 shares due to a share split Issued and Fully Paid Share Capital (thousand HKD) | Date | Number of Ordinary Shares | Share Capital (thousand HKD) | | :--- | :--- | :--- | | December 31, 2024 and June 30, 2025 | 11,765 | 465,653 | - Pursuant to a written resolution of shareholders on August 15, 2025, each issued ordinary share of the Company was subdivided into **28,000** ordinary shares immediately prior to the completion of the listing[104](index=104&type=chunk) - Immediately following the share split, the number of issued shares of the Company changed from **11,765** to **329,420,000**[104](index=104&type=chunk) [16 Borrowings](index=32&type=section&id=16%20%E5%80%9F%E6%AC%BE) The Group's total borrowings increased to 1,895.083 million HKD as of June 30, 2025, comprising Euro and RMB-denominated bank loans, secured by shareholder guarantees to be released post-listing Borrowings Details (thousand HKD) | Type | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Non-current secured bank loans (Euro) | 1,615,989 | 1,470,386 | | Current secured bank loans (Euro) | 84,702 | 47,408 | | Current secured bank loans (RMB) | 30,408 | 31,170 | | Current unsecured bank loans (RMB) | 163,984 | 106,065 | | **Total borrowings** | **1,895,083** | **1,655,029** | - Euro-denominated secured bank loans amounted to **188 million Euro**, used for the Bakuta Tungsten Mine construction, bearing a fixed annual interest rate of **1%**, with a portion of unutilized facilities bearing floating interest rates[106](index=106&type=chunk)[107](index=107&type=chunk) - RMB-denominated secured bank loans amounted to **92 million RMB** for operating activities; unsecured bank loans amounted to **150 million RMB** for construction and operating activities[109](index=109&type=chunk)[110](index=110&type=chunk) - Borrowings are corporately guaranteed by Jiangxi Copper Corporation Limited and counter-guaranteed by other shareholders; these guarantee arrangements will be released after the listing[111](index=111&type=chunk) Borrowing Repayment Schedule (thousand HKD) | Term | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Within 1 year | 279,094 | 184,643 | | 1 to 2 years | 537,813 | 201,599 | | 2 to 5 years | 1,078,176 | 1,268,787 | | **Total** | **1,895,083** | **1,655,029** | [17 Trade Payables](index=35&type=section&id=17%20%E8%B2%A9%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, the Group's trade payables totaled 76.199 million HKD, primarily denominated in RMB and Tenge, all aged within three months, with a typical credit period of six months Trade Payables (thousand HKD) | Currency | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | RMB | 20,675 | – | | Tenge | 55,524 | – | | **Total** | **76,199** | **–** | - All trade payables are aged within three months[114](index=114&type=chunk) - The credit period granted by suppliers is generally **6 months**[113](index=113&type=chunk) [18 Contract Liabilities](index=35&type=section&id=18%20%E5%90%88%E7%B4%84%E8%B2%A0%E5%82%B5) The Group's contract liabilities significantly increased to 165.414 million HKD as of June 30, 2025, primarily representing prepayments received from customers for goods not yet provided Contract Liabilities (thousand HKD) | Date | Amount (thousand HKD) | | :--- | :--- | | June 30, 2025 | 165,414 | | December 31, 2024 | 31,783 | - Contract liabilities primarily represent prepayments received from customers for customer contracts where the related goods have not yet been provided[115](index=115&type=chunk) - No revenue was recognized during the six months ended June 30, 2025, that was included in the contract liabilities balance at the beginning of the six months ended June 30, 2025[115](index=115&type=chunk) [19 Related Party Transactions](index=36&type=section&id=19%20%E9%97%9C%E8%81%AF%E6%96%B9%E4%BA%A4%E6%98%93) The Group engaged in various related party transactions, including borrowing guarantees from Jiangxi Copper Corporation Limited, construction and mining service contracts with China Civil Engineering Construction Corporation, and purchases from several associated companies - Jiangxi Copper Corporation Limited provides guarantees for the Group's borrowings with a fixed guarantee fee of **0.57%** per annum; this guarantee will be released after the listing[118](index=118&type=chunk) Procurement Contracts with China Civil Engineering Construction Corporation (thousand HKD) | Transaction Type | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Construction services paid and payable | 28,673 | 227,905 | | Equipment purchase payments | – | 63,965 | | Mining services purchase payments | 44,656 | – | Outstanding Balances with Related Parties (thousand HKD) | Balance Type | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Contracted but not included in consolidated financial statements | 141,655 | 329,473 | | Amounts payable for construction work | 65,873 | 48,951 | | Trade payables | 36,302 | – | | Prepayments for equipment purchase and construction services | 118,494 | 110,639 | | Outstanding balance from purchase of goods | 14,640 | 6,983 | | Shareholder loans | 56,260 | 45,305 | | Amounts payable to Jiangxi Copper Corporation Limited | 13,392 | 12,646 | | Amounts payable to shareholders | 69,652 | 57,951 | - Key management personnel remuneration was **4.399 million HKD** (prior corresponding period of 2024: **3.860 million HKD**)[123](index=123&type=chunk) [20 Events After Reporting Period](index=39&type=section&id=20%20%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E4%BB%B6) Other than the share split disclosed in Note 15, no other significant events requiring additional disclosure or adjustment occurred between June 30, 2025, and the approval date of these interim financial statements - Save as disclosed in Note 15, no other significant events requiring additional disclosure or adjustment occurred between June 30, 2025, and the approval date of these interim financial statements[124](index=124&type=chunk) [Definitions](index=40&type=section&id=%E9%87%8B%E7%BE%A9) This section provides definitions for key terms used throughout the report to ensure a clear understanding of its content, covering corporate governance, business projects, financial terminology, and listing-related concepts [Glossary of Terms](index=40&type=section&id=%E8%A9%9E%E5%BD%99%E5%AE%9A%E7%BE%A9) This section defines key terms used in the report, ensuring clarity for readers on corporate governance, business projects, financial terminology, and listing-related concepts - "Bakuta Tungsten Mine Project" refers to the geological exploration, tungsten ore mining, and construction of tungsten ore processing facilities undertaken by the Company in Bakuta, Kazakhstan[125](index=125&type=chunk) - "Listing" refers to the listing of shares on the Main Board of the Stock Exchange[125](index=125&type=chunk) - "Period" refers to the six months ended June 30, 2025; "Prior Period" refers to the six months ended June 30, 2024[125](index=125&type=chunk)

Company Information [Board of Directors and Management](index=3&type=section&id=Board%20of%20Directors%20and%20Management) The company's board comprises executive, non-executive, and independent non-executive directors, with Mr. Chen Chaoyang serving as Chairman and Executive Director, and Ms. He Yingfei and Ms. Zhang Xiao as Joint Company Secretaries and Authorized Representatives - The Board of Directors includes Executive Directors (Mr. Chen Chaoyang, Ms. He Yingfei, Mr. Feng Xie, Mr. Li Feiyu), Non-Executive Directors (Mr. Liu Senlin, Mr. Guo Tao), and Independent Non-Executive Directors (Mr. Wu Xiaohui, Mr. Luo Yi, Ms. Chen Yifei)[5](index=5&type=chunk) - The company has an Audit Committee (Chairman: Mr. Wu Xiaohui), a Remuneration Committee (Chairman: Mr. Luo Yi), and a Nomination Committee (Chairman: Mr. Chen Chaoyang)[5](index=5&type=chunk) - Ms. He Yingfei and Ms. Zhang Xiao serve as Joint Company Secretaries and Authorized Representatives[5](index=5&type=chunk) [Registration and Contact Information](index=3&type=section&id=Registration%20and%20Contact%20Information) The company's registered office is in Ganjiang New Area, Jiangxi Province, China, with its principal place of business in Beijing, Chaoyang District, and its principal place of business in Hong Kong in Wan Chai; the company's H-share stock code is 02522 - The company's registered office is located at Room 1002, 10th Floor, Building 10, Public R&D Service Center, South Dongdadao, Xinqizhou, Traditional Chinese Medicine Science and Technology Innovation City, Ganjiang New Area, Jiangxi Province, China[5](index=5&type=chunk) - The company's principal place of business in China is located at Building 2, No. 2, Minzuyuan Road, Chaoyang District, Beijing, China[5](index=5&type=chunk) - The company's principal place of business in Hong Kong is located at 40th Floor, Dah Sing Financial Centre, 248 Queen's Road East, Wan Chai, Hong Kong[6](index=6&type=chunk) - The company's H-share stock code is 02522[6](index=6&type=chunk) Financial and Business Highlights [Financial Highlights](index=5&type=section&id=Financial%20Highlights) For the six months ended June 30, 2025, the company's revenue increased by 12.9% year-on-year to RMB 467.0 million, with profit for the period surging by 1,545.9% to RMB 15.8 million, driven by increased customer numbers despite a decline in gross profit Six-Month Financial Highlights as of June 30 | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 467,049 | 413,713 | 12.9% | | Gross Profit | 137,246 | 159,659 | -14.0% | | Profit for the Period | 15,834 | 962 | 1,545.9% | | Profit for the Period Attributable to Owners of the Company | 16,443 | 3,836 | 328.6% | | EBITDA | 135,443 | 114,132 | 18.7% | - Interim results increased year-on-year, primarily due to revenue growth driven by an increase in customer numbers[9](index=9&type=chunk) - Core imaging center service revenue remained relatively stable and showed steady growth compared to the second half of 2024[9](index=9&type=chunk) [Business Highlights](index=6&type=section&id=Business%20Highlights) As a leading medical imaging specialist group in China, the company achieved stable overall business development during the reporting period, with revenue increasing by 12.9% year-on-year and profit for the period surging by 1,545.9%; imaging center services and imaging solution services saw rapid customer expansion, with significant progress in leveraging imaging data value and AI-driven business development, including listing "CT Chest Lesion Annotation Data" on the Shanghai Data Exchange - Overall business developed steadily, with revenue of approximately **RMB 467.0 million**, a year-on-year increase of **12.9%** and a quarter-on-quarter increase of **34.6%**[10](index=10&type=chunk) - Imaging center services newly developed **11** imaging centers and commenced operations for **12** imaging centers; imaging solution services added **354** new customers[10](index=10&type=chunk) - The company's subsidiary, Beijing Yimai Sunshine Medical Information Technology Co., Ltd., listed "CT Chest Lesion Annotation Data" on the Shanghai Data Exchange, marking a new stage in the market-oriented process of medical imaging data elements[10](index=10&type=chunk) Management Discussion and Analysis [I. Business Review](index=7&type=section&id=I.%20Business%20Review) As a leading medical imaging specialist group in China, the company continues to deepen its strategic layout and business innovation, building an efficient, accessible, and intelligent medical imaging ecosystem service platform; during the reporting period, the company's revenue reached RMB 467.0 million, primarily from imaging center services, imaging solution services, and Yimai Cloud services, actively responding to national policies, promoting the decentralization of medical resources, mutual recognition of cloud imaging, and the application of medical AI, while accelerating its overseas market expansion - The company was listed on the Main Board of the Stock Exchange on June 7, 2024, and was included in Stock Connect and the Hang Seng Index on March 10, 2025[12](index=12&type=chunk) - The company's strategic implementation path forms a complete value closed loop through "scaled layout of imaging center network," "output of refined operational capabilities," "release of data resource value," and "empowerment of industrial ecosystem platform" in a four-dimensional synergy[13](index=13&type=chunk) - In the first half of 2025, national policies such as the decentralization and sharing of medical resources, mutual recognition of cloud imaging and results, and data services and medical AI applications provided strong support for the company's business development[14](index=14&type=chunk) [Overview](index=7&type=section&id=Overview) Since its listing, the company has continuously deepened its strategic layout, with medical imaging services as its core, imaging solution services as an expansion engine, and Yimai Cloud services as a key to upgrading traditional businesses, forming a "service scenario + technological innovation" dual-engine model; the company actively responds to national medical policies, making progress in medical resource decentralization, cloud imaging mutual recognition, and medical AI applications, and has expanded into nuclear medicine through the acquisition of Gaomai Health - The company completed the placement of **9,750,000** shares on May 6, 2025, with net proceeds of approximately **HKD 182.29 million**[12](index=12&type=chunk) - The company achieves efficient collaboration in multiple locations through a "device sharing + doctor sharing + data sharing" model, enabling primary care sub-centers to take images and shared centers to diagnose[14](index=14&type=chunk) - Shanghai Yinghe Yimai Intelligent Technology Co., Ltd., incubated by the company, released the world's first full-modality medical imaging foundation large model, with AI-assisted diagnosis gradually being included in medical insurance payments, opening up new growth points[15](index=15&type=chunk) - The company completed the acquisition of **70%** equity in Gaomai Health, strengthening its capabilities in the nuclear medicine field[17](index=17&type=chunk) [Imaging Center Services](index=9&type=section&id=Imaging%20Center%20Services) Revenue from imaging center services decreased by **6.1%** year-on-year to **RMB 299.6 million** during the reporting period but increased by **4.5%** quarter-on-quarter, primarily affected by the macroeconomic environment and healthcare reforms; the company responded to challenges through refined operational management, investment and M&A, and product strategy adjustments, successfully implementing the "one license, multiple locations" innovative model to expand its imaging center network Imaging Center Services Revenue | Indicator | 2025 (RMB million) | 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Imaging Center Services Revenue | 299.6 | 319.0 | -6.1% | - Imaging center services revenue increased by **RMB 12.8 million** or **4.5%** quarter-on-quarter compared to the second half of 2024[18](index=18&type=chunk) - **11** new imaging centers were developed, and **12** imaging centers commenced operations, bringing the total to **126** developed and **115** operational imaging centers as of June 30, 2025[22](index=22&type=chunk) - Successfully implemented the "one license, multiple locations" innovative imaging business model, establishing a regional shared imaging sub-center at Xiangtan First People's Hospital[20](index=20&type=chunk) [Imaging Solution Services](index=12&type=section&id=Imaging%20Solution%20Services) Revenue from imaging solution services significantly increased by **88.9%** year-on-year to **RMB 160.9 million**, and by **207.1%** quarter-on-quarter, primarily due to the release of national medical new infrastructure policy dividends, recovery in equipment upgrade demand, and the company's diversified and flexible standalone empowerment product strategy, which effectively lowered customer adoption thresholds and rapidly increased customer numbers Imaging Solution Services Revenue | Indicator | 2025 (RMB million) | 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Imaging Solution Services Revenue | 160.9 | 85.2 | 88.9% | - Imaging solution services revenue increased by **RMB 108.5 million** or **207.1%** quarter-on-quarter compared to the second half of 2024[24](index=24&type=chunk) - The increase in revenue is mainly due to the release of national medical new infrastructure policy dividends, the gradual recovery of demand for medical equipment upgrades, and a significant increase in customer numbers brought by diversified standalone empowerment products[25](index=25&type=chunk) [Yimai Cloud Services](index=13&type=section&id=Yimai%20Cloud%20Services) Revenue from Yimai Cloud services decreased by **31.9%** year-on-year to **RMB 6.5 million**, primarily due to reduced one-time software sales, but cloud platform service revenue maintained a stable growth of **16.9%**; Yimai Cloud, as the core carrier of the company's digitalization strategy, builds a "data-algorithm-scenario" closed loop through data accumulation, governance, and AI incubation, making significant progress in cloud films, data governance, and AI ecosystem cooperation, including obtaining the first national "Medical Imaging Smart Platform Standard Database" registration certificate Yimai Cloud Services Revenue | Indicator | 2025 (RMB million) | 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Yimai Cloud Services Revenue | 6.5 | 9.6 | -31.9% | | Cloud Platform Services Revenue | 6.523 | 5.580 | 16.9% | - The company's subsidiary obtained the first national "Medical Imaging Smart Platform Standard Database" public announcement and registration, and successfully received the "Data Resource Registration Certificate"[29](index=29&type=chunk) - Signed a strategic cooperation agreement with iFlytek Healthcare Technology Co., Ltd. to jointly build smart healthcare solutions[29](index=29&type=chunk) - Significant progress was made in the "Interconnection and Interoperability Network" project promoted in the Xiangtan region, creating an integrated medical imaging cloud platform for **9** hospitals[33](index=33&type=chunk) [Overseas Business Division](index=16&type=section&id=Overseas%20Business%20Division) Facing domestic market pressure, the company actively expanded into overseas markets, achieving substantial breakthroughs in key markets such as East Asia, Southeast Asia, the Middle East, and Africa, with **15** sales project contracts signed; a joint venture, Yimai EC Healthcare Technology Co., Ltd., was established with EC Healthcare, and cooperation on medical equipment and consumables was achieved in the Republic of Malawi and the Republic of Sierra Leone - The overseas business department has cumulatively signed **15** sales project contracts[34](index=34&type=chunk) - Yimai EC Healthcare Technology Co., Ltd., a joint venture with EC Healthcare, officially commenced operations, providing full-cycle operational management services for **8** medical institutions under EC Healthcare[34](index=34&type=chunk) - Achieved multi-million dollar medical equipment cooperation with Blantyre International Cancer Centre in the Republic of Malawi and initiated the first medical consumables supply attempt with the Republic of Sierra Leone[34](index=34&type=chunk) [Integrated One-Stop Ecosystem Platform Centered on Three Business Segments](index=17&type=section&id=Integrated%20One-Stop%20Ecosystem%20Platform%20Centered%20on%20Three%20Business%20Segments) The company builds a mutually supportive and transformative one-stop ecosystem platform through its three business segments: imaging center services, imaging solution services, and Yimai Cloud services, connecting different participants and providing diversified service packages to realize value and interaction - The three core businesses form a one-stop ecosystem platform, connecting different participants, allowing each role to achieve value realization or value interaction[37](index=37&type=chunk)[40](index=40&type=chunk) [Standalone Empowerment Products](index=18&type=section&id=Standalone%20Empowerment%20Products) In the first half of 2025, the company implemented a "flexible asset-light standalone empowerment product" strategy, disassembling its three business segments into over **30** independently combinable light and small modular products, achieving "standardized output + customized combination"; this strategy significantly enhanced service flexibility and market responsiveness, driving **354** new customers for imaging solution services and becoming a key engine for the company's overall growth - The company disassembled its original businesses and standardized them into over **30** independently combinable light and small modular products, achieving "standardized output + customized combination"[41](index=41&type=chunk) - The rapid promotion of the asset-light standalone empowerment model successfully attracted **354** new customers for imaging solution services[41](index=41&type=chunk) - The vast user base creates broader market entry points and cross-selling opportunities for the company's business, helping to optimize cost structure and improve service network efficiency and profitability[41](index=41&type=chunk) [Forming a Unique Data-Algorithm-Scenario Medical Imaging AI Industry Application Ecosystem Closed Loop](index=19&type=section&id=Forming%20a%20Unique%20Data-Algorithm-Scenario%20Medical%20Imaging%20AI%20Industry%20Application%20Ecosystem%20Closed%20Loop) By building a full-chain closed-loop ecosystem from its own imaging center network to AI large model applications, the company has pioneered the core path for commercializing medical imaging AI; this closed loop integrates physical layer data production entry points, data layer high-quality datasets, AI model layer foundation large models, and application layer imaging center networks, forming a complete "data-large model-application" AI industry closed loop, improving diagnostic efficiency and reducing costs - The company has built a complete "data-large model-application" AI industry closed loop, deeply integrating high-quality data production entry points at the physical layer, model training at the technical layer, and scenario implementation at the application layer[44](index=44&type=chunk) - Based on a nationwide network of **115** medical imaging centers, an average of **20,000-30,000** standardized medical imaging data cases are generated and accumulated daily, providing fuel for training medical imaging foundation large models[44](index=44&type=chunk) - Through Yinghe Yimai's self-developed world's first full-modality, full-process medical imaging foundation large model, the medical imaging AI industry has transitioned from the single-disease model "1.0 era" to the foundation large model "2.0 era"[45](index=45&type=chunk) [Talent Development Program](index=20&type=section&id=Talent%20Development%20Program) The company adheres to the philosophy of "talent as the primary strategic asset," building a "management empowerment + professional advancement" dual-driven talent ecosystem; in the first half of 2025, through four pillars—talent inventory, youth cadre training, management trainee program, and equity incentives—the company strengthened talent reserves and development, simultaneously, it continued to advance professional capability building in medical imaging, conducting specialized training, developing high-value disease-specific imaging examinations and distinctive technologies, and strengthening cooperation with universities to cultivate new talent - The company builds an endogenous talent ecosystem that drives sustainable business development through four pillars: talent inventory, youth cadre training, management trainee program, and equity incentives[49](index=49&type=chunk) - A total of **256** specialized medical imaging training sessions were conducted, covering **2,988** participants, comprehensively enhancing the diagnostic capabilities of grassroots teams[53](index=53&type=chunk) - Launched specialized imaging examinations for diseases such as scoliosis, cardiovascular and cerebrovascular diseases, and Alzheimer's disease, and successfully joined the "China AD Preclinical Alliance"[53](index=53&type=chunk) - The Imaging Academy focuses on promoting cooperation with medical universities for internships, practical training, and targeted employment, establishing multi-dimensional partnerships with **3** institutions[55](index=55&type=chunk) [II. Financial Review](index=23&type=section&id=II.%20Financial%20Review) For the six months ended June 30, 2025, the company's revenue increased by 12.9% year-on-year to RMB 467.0 million, with profit for the period surging by 1,545.9% to RMB 15.8 million; revenue growth was primarily driven by imaging solution services, but gross profit and gross margin declined due to policy adjustments and increased industry competition; the company implemented cost reduction and efficiency improvement measures, resulting in decreased selling and administrative expenses, while R&D investment increased; net finance costs rose due to new project financing, but the gearing ratio improved Key Financial Data for the Six Months Ended June 30 | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 467,049 | 413,713 | 12.9% | | Gross Profit | 137,246 | 159,659 | -14.0% | | Profit for the Period | 15,834 | 962 | 1,545.9% | | EBITDA | 135,443 | 114,132 | 18.7% | - The increase in profit for the period is mainly due to revenue growth driven by an increase in customer numbers, cost reduction and efficiency improvement measures, and the gradual financial benefits from investments in data resources and AI[68](index=68&type=chunk) - The gearing ratio decreased by **3.6%** from **29.2%** as of December 31, 2024, to **25.6%** as of June 30, 2025, further optimizing the capital structure[74](index=74&type=chunk) [Overview](index=23&type=section&id=Overview) This financial review is based on the financial information and notes in the interim report and should be read in conjunction for a comprehensive understanding of the company's financial performance - The financial review is based on the financial information and notes in the interim report[56](index=56&type=chunk) [Revenue](index=24&type=section&id=Revenue) During the reporting period, the company's revenue increased by **12.9%** year-on-year to **RMB 467.0 million**, and by **34.6%** quarter-on-quarter, primarily driven by increased revenue from imaging solution services, which offset a slight decrease in imaging center services revenue Revenue Breakdown | Business Line | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Imaging Center Services | 299,627 | 318,953 | | Imaging Solution Services | 160,899 | 85,180 | | Yimai Cloud Services | 6,523 | 9,580 | | **Total Revenue** | **467,049** | **413,713** | - Total revenue increased by **12.9%** year-on-year and **34.6%** quarter-on-quarter[57](index=57&type=chunk) - The overall increase in revenue is mainly due to increased imaging solution services revenue driven by an increase in customer numbers[58](index=58&type=chunk) [Cost of Sales](index=25&type=section&id=Cost%20of%20Sales) During the reporting period, cost of sales increased by **29.8%** year-on-year to **RMB 329.8 million**, primarily due to increased business volume in imaging solution services Cost of Sales | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Cost of Sales | 329,803 | 254,054 | 29.8% | - The increase in cost of sales is mainly due to increased business volume in imaging solution services[60](index=60&type=chunk) [Gross Profit and Gross Margin](index=25&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Gross profit decreased by **14.0%** year-on-year to **RMB 137.2 million**, with gross margin declining from **38.6%** to **29.4%**; the decrease was primarily affected by policy adjustments in imaging examination fees and intensified industry competition, which the company is addressing through refined operations and high-margin product optimization Gross Profit and Gross Margin | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Gross Profit | 137,246 | 159,659 | -14.0% | | Gross Margin | 29.4% | 38.6% | -9.2 percentage points | - The decrease in gross profit and gross margin is mainly due to policy adjustments in imaging examination fees and increased industry competition pressure[61](index=61&type=chunk) - The company is improving gross profit and gross margin through refined operational management, optimizing cost structure, and launching high-margin standalone empowerment products[61](index=61&type=chunk) [Selling Expenses](index=26&type=section&id=Selling%20Expenses) Selling expenses decreased by **18.5%** year-on-year to **RMB 26.9 million**, primarily benefiting from the company's cost reduction and efficiency improvement measures implemented in response to industry cyclical adjustments, which optimized marketing strategies Selling Expenses | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Selling Expenses | 26,892 | 32,961 | -18.5% | - The decrease in selling expenses is mainly due to the company vigorously implementing various cost reduction and efficiency improvement measures, optimizing marketing strategies, and enhancing marketing efficiency[62](index=62&type=chunk) [Administrative Expenses](index=26&type=section&id=Administrative%20Expenses) Administrative expenses decreased by **32.5%** year-on-year to **RMB 75.0 million**, primarily due to reduced listing expenses Administrative Expenses | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Administrative Expenses | 74,986 | 111,092 | -32.5% | - The decrease in administrative expenses is mainly due to a reduction in listing expenses[63](index=63&type=chunk) [Research and Development Expenses](index=26&type=section&id=Research%20and%20Development%20Expenses) Research and development expenses increased by **33.3%** year-on-year to **RMB 7.6 million**, primarily reflecting the company's increased investment in its digitalization and AI R&D strategic reforms Research and Development Expenses | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Research and Development Expenses | 7,604 | 5,715 | 33.3% | - The increase in R&D expenses is mainly due to increased R&D investment during the process of digitalization and AI R&D strategic reforms[64](index=64&type=chunk) [Finance Income and Costs](index=27&type=section&id=Finance%20Income%20and%20Costs) Net finance costs increased by **16.2%** year-on-year to **RMB 11.5 million**, primarily due to increased finance leases and bank borrowings associated with newly developed imaging center projects Finance Income and Costs | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Finance Income | 2,931 | 1,143 | | Finance Costs | (14,403) | (11,049) | | **Net Finance Costs** | **(11,472)** | **(9,906)** | - The increase in net finance costs is mainly due to the corresponding increase in finance leases and bank borrowings for newly developed imaging center projects[66](index=66&type=chunk) [Income Tax Expense](index=27&type=section&id=Income%20Tax%20Expense) Income tax expense for the reporting period was **RMB 8.7 million**, accrued on the taxable profits of the company's China operations, applying a statutory tax rate of 25% or preferential tax rates Income Tax Expense | Indicator | 2025 (RMB thousand) | | :--- | :--- | | Income Tax Expense | 8,656 | - Income tax expense is accrued on the taxable profits of the company's China operations, subject to a statutory tax rate of **25%** or preferential tax rates[67](index=67&type=chunk) [Profit for the Period](index=28&type=section&id=Profit%20for%20the%20Period) Profit for the period significantly increased by **1,545.9%** year-on-year to **RMB 15.8 million**, primarily benefiting from revenue growth driven by increased customer numbers, cost reduction and efficiency improvement measures, and the gradual financial benefits from investments in data resources and AI Profit for the Period | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Profit for the Period | 15,834 | 962 | 1,545.9% | - The increase in profit is mainly due to revenue growth driven by an increase in customer numbers, cost reduction and efficiency improvement measures, and the continuous investment in data resources and AI gradually bringing financial benefits[68](index=68&type=chunk) [Non-IFRS Measures](index=28&type=section&id=Non-IFRS%20Measures) The company uses EBITDA as a non-IFRS measure to supplement its consolidated statement of comprehensive income; during the reporting period, EBITDA increased by **18.7%** year-on-year to **RMB 135.4 million**, providing investors with additional information to assess the company's performance EBITDA (Non-IFRS Measure) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | EBITDA | 135,443 | 114,132 | 18.7% | - EBITDA is defined as profit before income tax plus finance costs, depreciation of property, plant and equipment, depreciation of right-of-use assets, and amortization of intangible assets, less finance income[69](index=69&type=chunk) [Capital Management](index=29&type=section&id=Capital%20Management) The company monitors capital through regular reviews of its capital structure, aiming to safeguard its ability to continue as a going concern, provide returns to shareholders, and optimize its capital structure to reduce the cost of capital - The company monitors capital through regular reviews of its capital structure, aiming to safeguard its ability to continue as a going concern, provide returns to shareholders, and optimize its capital structure to reduce the cost of capital[72](index=72&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) The company's working capital primarily comes from cash inflows from operating activities, bank borrowings, finance leases, and equity financing; cash and cash equivalents increased to **RMB 364.7 million**, and net cash from operating activities increased to **RMB 93.0 million**, mainly reflecting proceeds from the placement of new H shares and strengthened management of accounts receivable Cash and Cash Equivalents | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 364.7 | 262.4 | Net Cash from Operating Activities | Indicator | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 93.0 | 34.1 | - The increase in cash and cash equivalents mainly reflects the proceeds from the placement of new H shares during the reporting period[73](index=73&type=chunk) - The increase in net cash from operating activities is mainly due to strengthened management of accounts receivable, optimizing cash flow[73](index=73&type=chunk) [Borrowings and Gearing Ratio](index=30&type=section&id=Borrowings%20and%20Gearing%20Ratio) As of June 30, 2025, the company's total borrowings were approximately **RMB 416.3 million**, and the gearing ratio was **25.6%**, a decrease of **3.6%** from **29.2%** as of December 31, 2024, indicating further optimization of the asset-liability structure Borrowings and Gearing Ratio | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Total Borrowings Balance | 416.3 | 433.2 | | Gearing Ratio | 25.6% | 29.2% | - The gearing ratio decreased by **3.6%**, further optimizing the capital structure[74](index=74&type=chunk) [Net Current Assets](index=30&type=section&id=Net%20Current%20Assets) Net current assets increased by **25.1%** to **RMB 620.4 million**, primarily due to increased liquidity from the placement of new H shares during the reporting period Net Current Assets | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Net Current Assets | 620.4 | 496.0 | 25.1% | - The increase in net current assets is mainly due to the placement of new H shares during the reporting period, increasing liquidity[75](index=75&type=chunk) [Foreign Exchange Risk](index=30&type=section&id=Foreign%20Exchange%20Risk) The company's foreign exchange risk is limited as most transactions are denominated and settled in RMB, with no current foreign currency hedging policy, and risk is managed by monitoring exchange rates; as of June 30, 2025, there were no significant foreign currency denominated assets or liabilities - Most of the company's transactions are denominated and settled in RMB, resulting in limited foreign exchange risk[76](index=76&type=chunk) - The company currently has no foreign currency hedging policy and manages foreign currency risk by closely monitoring foreign currency exchange rates[76](index=76&type=chunk) [Material Investments / Future Plans for Material Investments or Capital Assets](index=30&type=section&id=Material%20Investments%20%2F%20Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) As of June 30, 2025, the company had not made or held any material investments, and as of the date of the interim report, there were no future plans for material investments or capital assets - As of June 30, 2025, the company had not made or held any material investments[77](index=77&type=chunk) - As of the date of this interim report, the company has no future plans for any material investments or capital assets[78](index=78&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates, and Joint Ventures](index=31&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%2C%20and%20Joint%20Ventures) During the reporting period, the company had no material acquisitions or disposals of subsidiaries, associates, or joint ventures - During the reporting period, the company had no material acquisitions or disposals of subsidiaries, associates, or joint ventures[80](index=80&type=chunk) [Capital Expenditures](index=31&type=section&id=Capital%20Expenditures) Total capital expenditures for the reporting period were approximately **RMB 23.7 million**, primarily used for the purchase of equipment and intangible assets Capital Expenditures | Indicator | 2025 (RMB million) | | :--- | :--- | | Total Capital Expenditures | 23.7 | - Capital expenditures were primarily used for the purchase of equipment and intangible assets (e.g., software)[81](index=81&type=chunk) [Pledged Assets](index=31&type=section&id=Pledged%20Assets) As of June 30, 2025, the company had pledged machinery, bank cash, trade receivables, and equity interests in subsidiaries, totaling approximately **RMB 476.5 million** Pledged Assets | Type of Pledged Asset | Amount (RMB million) | | :--- | :--- | | Machinery, bank cash, trade receivables, and equity interests in subsidiaries | 476.5 | [Contingent Liabilities](index=31&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the company had no significant contingent liabilities, guarantees, legal, arbitration, or administrative proceedings that are expected to have a material adverse effect on its financial position or operating results - As of June 30, 2025, the company had no significant contingent liabilities that are expected to have a material adverse effect on its financial position or operating results[83](index=83&type=chunk) [Employees and Remuneration Policy](index=31&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the company had **819** employees and **543** medical professionals, with employee benefit expenses of approximately **RMB 92.9 million**; the company is committed to establishing a competitive and fair remuneration system, providing diverse benefits, and continuously offering education and training programs for employees Employees and Remuneration | Indicator | June 30, 2025 | | :--- | :--- | | Number of Employees | 819 | | Number of Medical Professionals | 543 | | Employee Benefit Expenses (RMB million) | 92.9 | - The company's remuneration includes basic salary and performance-based bonuses, and provides benefits such as social insurance, housing provident fund, annual leave, allowances, and supplementary medical insurance[84](index=84&type=chunk) - The company continuously provides internal and external training programs for employees to enhance their technical, professional, or management skills[84](index=84&type=chunk) [III. Future Development and Strategy](index=32&type=section&id=III.%20Future%20Development%20and%20Strategy) The company aims to be an innovation leader in global medical imaging services, building a full-value chain platform of "physical network + digital intelligence ecosystem + global services"; future strategies include deepening the nationwide imaging center network layout and expanding global services, strengthening the asset-light engine role of imaging solution services, focusing on data's core role as a link in AI+healthcare, building an open and collaborative industrial ecosystem, and strengthening talent cultivation and operations management systems and improving internal control systems to achieve high-quality sustainable development - The company's goal is to become an innovation leader in global medical imaging services, building a full-value chain medical imaging platform of "physical network + digital intelligence ecosystem + global services"[85](index=85&type=chunk) - The core strategy is to deepen asset-light capability output, strengthen data and AI-driven service innovation, and rapidly expand domestic and international market coverage[85](index=85&type=chunk) [Deepening the Nationwide Multi-Dimensional Layout of Imaging Center Network, Promoting Global Service Capability Expansion, and Building an Upgraded "Imaging Services" Network](index=32&type=section&id=Deepening%20the%20Nationwide%20Multi-Dimensional%20Layout%20of%20Imaging%20Center%20Network%2C%20Promoting%20Global%20Service%20Capability%20Expansion%2C%20and%20Building%20an%20Upgraded%20%22Imaging%20Services%22%20Network) The company will use imaging center services as its "ballast stone," integrating the asset-light expansion momentum of imaging solution services to build an upgraded "China Imaging Services" network that is multi-layered, efficiently linked, and globally extended; specific measures include regional shared imaging centers precisely covering medically underserved areas, flagship imaging centers building clinical research high-end service hubs, specialty and operations management centers precisely penetrating grassroots services, accelerating network densification through strategic M&A, and promoting global service network construction via a "China model + local adaptation" path - Using imaging center services as a "ballast stone," integrating the "modular output + asset-light expansion" momentum of imaging solution services, to build an upgraded "China Imaging Services" network[85](index=85&type=chunk) [Regional Shared Imaging Centers](index=32&type=section&id=Regional%20Shared%20Imaging%20Centers) The company will position regional shared imaging centers as key nodes connecting county and township areas, precisely covering medically underserved regions through a "device sharing + doctor sharing + data sharing" model, complemented by basic imaging capability packages, to achieve real-time upload of regional imaging data and centralized cloud diagnosis, enhancing efficiency and reducing costs - Centered on "resource sharing + capability decentralization," building grassroots medical imaging infrastructure to precisely cover medically underserved areas[85](index=85&type=chunk) - Replicating the "one license, multiple locations" operational experience, focusing on deploying in counties with prominent medical resource gaps, extending the service radius of a single regional shared center to **5-8** counties and townships[85](index=85&type=chunk) - Achieving real-time upload of regional imaging data and centralized cloud diagnosis through the Yimai Cloud platform, linking expert resources from flagship centers to provide remote consultation support[87](index=87&type=chunk) [Flagship Imaging Centers](index=33&type=section&id=Flagship%20Imaging%20Centers) The company plans to use flagship imaging centers as a window to build a "clinical-research-high-end service" triangle, making them hubs for diagnosing difficult diseases, providing high-end services, and conducting innovative R&D in the region; this will involve deepening cooperation with top-tier tertiary hospitals, leveraging nuclear medicine resources obtained through the acquisition of Gaomai Health, and linking Yimai Cloud data with AI large models to develop multi-modal imaging algorithms - Building a regional imaging capability hub with a "clinical-research-high-end service" triangle[87](index=87&type=chunk) - Deepening "second imaging department" cooperation with top-tier large tertiary hospitals, jointly establishing expert studios for characteristic diseases such as cardiovascular, cerebrovascular, and oncology[87](index=87&type=chunk) - Leveraging nuclear medicine resources obtained through the acquisition of Gaomai Health to supplement service capabilities for high-end equipment and resources like PET-CT[87](index=87&type=chunk) [Specialty and Operations Management Centers](index=34&type=section&id=Specialty%20and%20Operations%20Management%20Centers) The company will focus specialty medical alliance and operations management centers on grassroots essential scenarios, deeply binding grassroots medical institutions through "customized services + standardized output"; it will promote the screening center model, combining AI-assisted diagnostic tools to improve early screening rates, and output standardized SOP systems and operational management modules to drive revenue and profit margin growth - Focusing on "scenario customization + capability output" to achieve precise penetration of grassroots services[88](index=88&type=chunk) - Promoting the screening center model (e.g., "low-dose lung cancer screening imaging center"), combining AI-assisted diagnostic tools to improve early disease screening rates at the grassroots level[88](index=88&type=chunk) - Outputting an upgraded standardized SOP system for partner hospitals, covering the entire process of appointment, examination, diagnosis, and quality control[88](index=88&type=chunk) [Strategic Mergers and Acquisitions to Accelerate Network Density](index=34&type=section&id=Strategic%20Mergers%20and%20Acquisitions%20to%20Accelerate%20Network%20Density) The company will focus on three types of targets—filling regional gaps, strengthening technological shortcomings, and integrating high-quality resources—to rapidly improve its imaging center network through a "precise screening + ecosystem integration" strategy; key acquisitions will include mature imaging centers in medically resource-intensive but sparsely distributed areas, specialized institutions in characteristic fields such as nuclear medicine and functional imaging, and targets with excellent operational management experience, to achieve deep integration and synergistic value release - Focusing on three types of targets—filling regional gaps, strengthening technological shortcomings, and integrating high-quality resources—to rapidly achieve full coverage and deep capability in the imaging center network[88](index=88&type=chunk) - Key acquisitions will include mature imaging centers in potential regions such as Central China and Southwest China, as well as specialized institutions in characteristic fields like nuclear medicine and functional imaging[88](index=88&type=chunk) - Post-acquisition, deep integration of targets with the existing network will be achieved through the introduction of standardized SOP systems, data interoperability via the Yimai Cloud platform, and cross-training of talent[90](index=90&type=chunk) [Global Service Network](index=35&type=section&id=Global%20Service%20Network) The company plans to leverage its mature domestic network experience and the global expansion advantages of its imaging solution services to accelerate overseas market deployment, achieving the international output of "China Medical Imaging Services"; it will export hardware equipment and consumable supply chains and the Yimai Cloud remote system to Hong Kong, Macau, Singapore, and Malaysia, and establish imaging service points in "Belt and Road" emerging markets through joint ventures/wholly-owned models, providing basic imaging examinations and remote diagnostic services - Following the "China model + local adaptation" path, promoting the internationalization of medical services and accelerating overseas market deployment[90](index=90&type=chunk) - In key regions such as Hong Kong, Macau, Singapore, and Malaysia, leveraging the cross-border imaging supply chain collaboration platform to export hardware equipment and consumable supply chains, as well as Yimai Cloud's remote and information systems[90](index=90&type=chunk) - Gradually establishing imaging service points in "Belt and Road" emerging markets such as Malawi and Morocco through joint ventures/wholly-owned models, providing basic imaging examinations and remote diagnostic services[90](index=90&type=chunk) [Strengthening the Asset-Light Engine Role of Imaging Solution Services to Build a "Full-Cycle Ecosystem Service System"](index=36&type=section&id=Strengthening%20the%20Asset-Light%20Engine%20Role%20of%20Imaging%20Solution%20Services%20to%20Build%20a%20%22Full-Cycle%20Ecosystem%20Service%20System%22) The company will fully leverage the asset-light, high-margin, and rapid penetration characteristics of imaging solution services to precisely transmit value and activate the industrial value of medical imaging services, achieving a full-cycle value upgrade from "customer coverage" to "ecosystem binding"; the core is a "zero-store expansion" asset-light model, upgrading through a diversified "standalone empowerment product" matrix, reconstructing growth logic, and co-creating a 3.0 era development ecosystem with equipment manufacturers - Fully leveraging the asset-light, high-margin, and rapid penetration characteristics of imaging solution services to break through the industry bottleneck of low penetration rates in the third-party imaging market[91](index=91&type=chunk) - Shifting market development thinking from "competing on store count for scale" to "competing on capability output for market share," laying the foundation for optimizing from a physical service provider to a platform-based enabler[91](index=91&type=chunk) ["Zero-Store Expansion" Asset-Light Model](index=36&type=section&id=%22Zero-Store%20Expansion%22%20Asset-Light%20Model) The company defines the core competitiveness of imaging solution services as replicable modular products ("standalone empowerment products"), rapidly covering B-side customers through "standardized output + customized combination" to achieve "zero-store expansion"; it is expected that new customers this year will exceed the total of the past decade, far surpassing the growth rate of traditional imaging centers, thanks to the low barrier to entry of modular products - Disassembling imaging services into replicable modular products, rapidly covering B-side customers through "standardized output + customized combination" to form a "zero-store expansion" asset-light model[91](index=91&type=chunk) - Expected new customers this year to exceed the total of the past decade, far surpassing the average annual growth rate of traditional imaging centers[91](index=91&type=chunk) [Diversified "Standalone Empowerment Product" Matrix Upgrade](index=36&type=section&id=Diversified%20%22Standalone%20Empowerment%20Product%22%20Matrix%20Upgrade) The company will precisely address different customer pain points by "on-demand combination" of modular products for imaging solution services, and drive overall profitability through high-margin module combinations; it will provide differentiated product packages for grassroots medical institutions and tertiary hospitals, focusing on expanding high-end modules such as AI-assisted tool integration and data governance services, using a strategy of acquiring customers with basic modules and profiting from high-end modules to improve gross margin - Precisely addressing different customer pain points through "on-demand combination" and driving overall profitability through high-margin module combinations[91](index=91&type=chunk) - Upgrading basic imaging capability packages for grassroots medical institutions and launching scientific research imaging packages for tertiary hospitals, focusing on expanding high-end modules such as AI-assisted tool integration and data governance services[93](index=93&type=chunk) - Through modular output, transferring the company's standardized operational, training, and quality control system experience accumulated in imaging centers to partner institutions[93](index=93&type=chunk) [Reconstructing Growth Logic](index=37&type=section&id=Reconstructing%20Growth%20Logic) The company achieves "zero-store expansion" through solution services, significantly reducing construction costs and cycles compared to traditional imaging centers; through "light cooperation - deep binding" customer lifecycle management, it transforms the "traffic advantage" of solution services into a "scale advantage" of market penetration, and uses capability segment products as a starting point to convert asset-light customer acquisition into asset-heavy implementation - Solution services achieve "zero-store expansion" through customer payment for capability products, significantly reducing construction costs of over **RMB 10 million** per traditional imaging center and a construction cycle of **6-8** months[93](index=93&type=chunk) - Through "light cooperation - deep binding" customer lifecycle management, transforming the "traffic advantage" of solution services into a "scale advantage" of market penetration[93](index=93&type=chunk) [Co-creating a 3.0 Era Development Ecosystem with Equipment Manufacturers](index=38&type=section&id=Co-creating%20a%203.0%20Era%20Development%20Ecosystem%20with%20Equipment%20Manufacturers) The company will deepen strategic synergy with leading global equipment manufacturers, with modular capabilities of solution services as the core link, promoting cooperation from business synergy to a 3.0 stage of ecosystem integration; by using modular solutions as a carrier, it will create an integrated service package covering the entire equipment lifecycle, enabling equipment manufacturers to shift from pure sales to value-added services - Deepening strategic synergy with leading global equipment manufacturers, promoting cooperation from business synergy to a 3.0 stage of ecosystem integration[94](index=94&type=chunk) - Leveraging modular products in solution services such as "equipment selection and configuration," "installation and maintenance," "technician training," and "AI tool integration" to jointly create an integrated service package with equipment manufacturers covering the entire equipment lifecycle[94](index=94&type=chunk) [Focusing on Data's Core Role as a Link in AI+Healthcare, Transforming Data Advantages into a Strategic Growth Engine](index=38&type=section&id=Focusing%20on%20Data%27s%20Core%20Role%20as%20a%20Link%20in%20AI%2BHealthcare%2C%20Transforming%20Data%20Advantages%20into%20a%20Strategic%20Growth%20Engine) The company plans for the Yimai Cloud platform to deeply unleash its triple capabilities of information infrastructure, data governance, and AI incubation, leveraging national policy dividends to build a full-chain value release path for data resource-ification, asset-ification, and capitalization, as well as an enhanced closed loop where data trains algorithms, algorithms empower scenarios, and scenarios feed back data; the goal is to achieve information infrastructure supporting industry interconnection, data services becoming the core water source for the industry, and an AI closed loop driving continuous value creation - The Yimai Cloud platform deeply unleashes its triple capabilities of information infrastructure, data governance, and AI incubation, building a full-chain value release path for data resource-ification, asset-ification, and capitalization[95](index=95&type=chunk) - Achieving an enhanced closed loop where data trains algorithms, algorithms empower scenarios, and scenarios feed back data[95](index=95&type=chunk) [Strengthening Information Infrastructure](index=38&type=section&id=Strengthening%20Information%20Infrastructure) The company will respond to national medical insurance imaging cloud indexing schemes and new radiology examination pricing policies, optimizing the interoperability of its full-modality smart PACS system and remote consultation platform to support multi-protocol access, enabling real-time retrieval and sharing of cross-hospital and cross-regional imaging data; simultaneously, it will continue to promote the establishment of a comprehensive regional imaging mutual recognition standard system with local governments, providing a "cloud imaging sharing platform" for regional medical communities and "scientific research collaboration information systems" for tertiary hospitals - Responding to national medical insurance imaging cloud indexing schemes and new radiology examination pricing policies, optimizing the interoperability of full-modality smart PACS systems and remote consultation platforms[95](index=95&type=chunk) - Supporting multi-protocol access such as DICOM and HL7, compatible with mainstream domestic and international imaging equipment, to achieve real-time retrieval and sharing of cross-hospital and cross-regional imaging data[95](index=95&type=chunk) - Continuously promoting the establishment of a comprehensive regional imaging mutual recognition standard system with local governments, advancing interconnection and interoperability among regional medical institutions and sharing of regional examination results[97](index=97&type=chunk) [Deepening Data Service Capabilities](index=39&type=section&id=Deepening%20Data%20Service%20Capabilities) The company will deepen the process of transforming existing data from "resources" to "assets," solidifying a full-process compliance governance system, and perfecting a full-chain compliance mechanism for "collection-cleaning-annotation-storage-application"; it will continuously increase the scale and quality of "real-world" core data sources available for AI training and scientific research, and promote breakthroughs in data asset commercialization, expanding the range of data products listed and exploring market-based transaction mechanisms - Deepening the process of transforming existing data from "resources" to "assets," perfecting a full-chain compliance mechanism for "collection-cleaning-annotation-storage-application"[97](index=97&type=chunk) - Continuously increasing the scale and quality of "real-world" core data sources available for AI training and scientific research, providing standardized products such as "disease annotation data," "multi-modal scientific research data," and "longitudinal follow-up data"[97](index=97&type=chunk) - Promoting breakthroughs in data asset commercialization, continuing to deepen cooperation with the Shanghai Data Exchange and Beijing Yizhuang Economic Development Zone, and expanding the range of data products listed[97](index=97&type=chunk) [Strengthening AI Strategic Closed Loop](index=40&type=section&id=Strengthening%20AI%20Strategic%20Closed%20Loop) The company will leverage its core advantages in medical imaging data services and full-scenario validation, linking Yinghe Yimai's algorithm R&D capabilities, to drive AI technology from clinical needs to clinical services, achieving a positive cycle of data value-add, algorithm iteration, and scenario penetration; this will be centered on the Yimai Cloud platform's scaled data accumulation, guided by clinical needs across all levels of imaging centers, and using the imaging center network as a "testing ground" to accelerate algorithm maturity and deployment - Leveraging core advantages in medical imaging data services and full-scenario validation, linking Yinghe Yimai's algorithm R&D capabilities, to drive AI technology from clinical needs to clinical services[98](index=98&type=chunk) - Centered on the Yimai Cloud platform's scaled data accumulation and compliance governance capabilities, addressing industry pain points of AI training data silos and inconsistent quality[98](index=98&type=chunk) - Using the full-coverage imaging center network as a "testing ground" to provide full-cycle scenario support for Yinghe Yimai's AI products, from "prototype testing" to "scaled validation"[98](index=98&type=chunk) [Building an Open and Collaborative Industrial Ecosystem, Strengthening Full-Chain Resource Integration Capabilities](index=41&type=section&id=Building%20an%20Open%20and%20Collaborative%20Industrial%20Ecosystem%2C%20Strengthening%20Full-Chain%20Resource%20Integration%20Capabilities) The company will deepen strategic synergy with upstream and downstream industry partners, replacing "individual competition" with "ecosystem empowerment" to promote the upgrade of the medical imaging industry chain; this includes jointly developing customized imaging equipment with equipment providers, co-building an "algorithm training - clinical validation" platform with medical imaging AI service providers, collaborating with internet healthcare platforms to achieve "online consultation + offline imaging examination delivery," and expanding health management and scientific research ecosystems - Deepening strategic synergy with upstream and downstream industry partners, replacing "individual competition" with "ecosystem empowerment" to promote the upgrade of the medical imaging industry chain[100](index=100&type=chunk) - Jointly developing customized imaging equipment with equipment providers, and co-building an "algorithm training - clinical validation" platform with medical imaging AI service providers[100](index=100&type=chunk) - Deepening cooperation with leading internet platforms such as JD Health to achieve an "online consultation + offline imaging examination delivery" model[100](index=100&type=chunk) [Strengthening Talent Cultivation and Operations Management System, Supporting Scaled and High-Quality Development](index=42&type=section&id=Strengthening%20Talent%20Cultivation%20and%20Operations%20Management%20System%2C%20Supporting%20Scaled%20and%20High-Quality%20Development)

CHINA HUAJUN GROUP LIMITED 中國華君集團有限公司 （ 於 百 慕 達 註 冊 成 立 之 有 限 公 司 ） （股份代號：377） 有關於二零二四年年報之補充公告 茲提述中國華君集團有限公司（「本公司」）於二零二五年四月二十九日刊發截至 二零二四年十二月三十一日止年度的年報（「二零二四年報」）。除另有界定外，本 公告中所使用的詞彙與二零二四年年報中界定者俱有相同涵義。 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告的全部或 任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔責任。 股份合併（每一百股本公司當時股份合併為一股合併股份）於二零一八年三月五 日起生效後，依購股權計劃可供發行的購股權及獎勵總數截至二零二四年一月一 日為5,989,450股，截至二零二四年十二月三十一日為6,028,185股。購股權計劃下並 無服務供應商分項限額。 截至二零二四年報日期（即二零二五年三月三十一日），根據購股權計劃可供發行 的股份總數為6,066,920股，約佔二零二四年年報日期已發行股份總數的9.80% ...

中期報告 2025 報 告 目錄 | 公司資料 | 2 | | --- | --- | | 主席報告書 | 4 | | 財務摘要 | 6 | | 管理層討論及分析 | 7 | | 其他資料披露 | 18 | | 簡明綜合損益表 | 21 | | 簡明綜合其他全面收益表 | 22 | | 簡明綜合財務狀況表 | 23 | | 簡明綜合權益變動表 | 25 | | 簡明綜合現金流量表 | 26 | | 簡明綜合中期財務報表附註 | 28 | 2025 INTERIM REPORT 2025 中 期 公司資料 | 執行董事 | 華民先生 | | --- | --- | | | 李果先生 | | | 劉鶯女士 | | | （於二零二五年一月十五日獲委任） | | | 咸鶴先生（於二零二五年一月十五日辭任） | | 非執行董事 | 蔣恆文先生 （主席） | | | 吳振洲先生 | | | （於二零二五年一月十五日獲委任） | | 獨立非執行董事 | 孫益文女士 | | | （於二零二五年五月七日獲委任） | | | 唐健先生 | | | 唐映紅女士 | | | 吳文楠女士（於二零二五年五月七日辭任） | | 審核委員會 ...

Financial Performance - Total revenue decreased from RMB 182.3 million in the six months ended June 30, 2024, to RMB 161.2 million in the six months ended June 30, 2025, representing a decline of RMB 21.1 million or 11.6%[22]. - For the six months ended June 30, 2025, the group reported a net profit of RMB 75.1 million, an increase of 41.5% from RMB 53.1 million for the same period in 2024, with a net profit margin of 46.6% compared to 29.1% in 2024[36]. - The company reported revenue of RMB 161,195,000, a decrease of 11.56% compared to RMB 182,268,000 for the same period in 2024[97]. - Gross profit for the same period was RMB 82,496,000, down from RMB 84,563,000, reflecting a decline of 2.45%[97]. - The company achieved a profit before tax of RMB 86,765,000, an increase of 28.29% from RMB 67,589,000 in the previous year[97]. - The company reported a net profit of RMB 75,149,000 for the six months ended June 30, 2025, compared to RMB 53,083,000 in the prior year, representing a growth of 41.55%[97]. Revenue Breakdown - The average daily revenue for supermarkets decreased to RMB 175.40 thousand in 2025 from RMB 191.07 thousand in 2024, a decline of approximately 8.93%[10]. - The average daily revenue for fresh markets increased to RMB 49.77 thousand in 2025 from RMB 37.88 thousand in 2024, a growth of approximately 31.56%[10]. - Retail services revenue slightly decreased by 1.1% from RMB 63.8 million to RMB 63.1 million, attributed to intensified competition in the retail market[25]. - Revenue from property management services increased significantly to RMB 43,442 thousand, up from RMB 29,576 thousand in the previous year, marking a growth of approximately 46.8%[130]. - The retail services segment generated the highest revenue at RMB 63,099,000, followed by property management services at RMB 55,069,000[123]. Cost and Expenses - Gross profit decreased from RMB 84.6 million to RMB 82.5 million, a reduction of RMB 2.1 million or 2.4%, while gross margin increased from approximately 46.4% to 51.2%[30]. - Administrative expenses increased by 17.0% from RMB 10.5 million to RMB 12.3 million, mainly due to new costs associated with fresh food procurement services and healthcare property management contracts[32]. - The company incurred rental expenses of RMB 1,038,000 for the six months ended June 30, 2025, compared to RMB 959,000 in 2024, representing an increase of 8.2%[132]. - Employee benefits expenses totaled approximately RMB 24,483,000 for the six months ended June 30, 2025, compared to RMB 23,028,000 in 2024, indicating a rise of 6.3%[135]. Assets and Liabilities - The group’s cash and cash equivalents amounted to RMB 206.7 million as of June 30, 2025, down from RMB 282.9 million on December 31, 2024[50]. - Total assets decreased to RMB 340,935 thousand from RMB 333,126 thousand in the previous year, reflecting a slight increase of 2.4%[98]. - Current liabilities increased significantly to RMB 146,213 thousand, up 25.7% from RMB 116,337 thousand in the previous year[100]. - Net assets decreased to RMB 381,140 thousand, down 15.9% from RMB 453,110 thousand as of December 31, 2024[101]. - Trade receivables increased by 66.7% from RMB 16.6 million on December 31, 2024, to RMB 27.6 million on June 30, 2025, primarily due to receivables from newly initiated property management contracts[43]. Corporate Governance - The board is committed to high standards of corporate governance to protect shareholder interests and enhance corporate value[61]. - The audit committee, composed of three independent non-executive directors, has reviewed the interim financial information for the six months ending June 30, 2025, with no objections raised[68]. - The remuneration committee has reviewed the company's remuneration policies and structures as of June 30, 2025, and made recommendations to the board[70]. - The Nomination Committee reviewed the board's structure, size, and composition, as well as the independence of non-executive directors during a meeting held on March 28, 2025[72]. Investments and Future Plans - The group plans to expand its business through integrated project management, including apartments, shopping malls, and commercial office buildings developed by third parties in Guangdong Province[19]. - The group is exploring new investment opportunities to enhance its competitive position in a challenging business environment[21]. - As of June 30, 2025, there were no significant investments, acquisitions, or disposals related to subsidiaries, associates, or joint ventures[57]. - There are currently no specific future plans for significant investments or capital assets[58]. Related Party Transactions - Revenue from sales to companies controlled by Ms. Meng reached RMB 283,000 in the first half of 2025, while sales to companies significantly influenced by Ms. Meng totaled RMB 687,000[189]. - Service revenue provided to companies controlled by Ms. Meng amounted to RMB 17,805,000, an increase from RMB 6,829,000 in the same period of 2024, representing a growth of approximately 161%[189]. - Total service revenue from related parties increased to RMB 30,551,000 in the first half of 2025, compared to RMB 26,420,000 in 2024, reflecting a year-over-year growth of about 8.5%[189]. - Total receivables from related parties increased to RMB 21,648 thousand as of June 30, 2025, up from RMB 13,781 thousand as of December 31, 2024, representing a growth of 57.5%[199].

2025 中期報告 INTERIM REPORT 2025 INTERIM REPORT 2025 中期報告 目 錄 | 公司資料 | 2 | | --- | --- | | 管理層討論與分析 | 4 | | 企業管治及其他資料 | 9 | | 中期簡明綜合全面收益表 | 13 | | 中期簡明綜合資產負債表 | 14 | | 中期簡明綜合權益變動表 | 16 | | 中期簡明綜合現金流量表 | 17 | | 中期簡明綜合財務資料附註 | 18 | 公司資料 董 事 執行董事 楊金明先生 （主 席 兼 行 政 總 裁） 董慧敏女士 蘇柏翰先生 非執行董事 楊帆先生 獨立非執行董事 彭漢忠先生 鄔錦雯教授 黃耀輝先生 註冊辦事處 Windward 3, Regatta Office Park P.O. Box 1350 Grand Cayman KY1-1108 Cayman Islands 總部及中國主要營業地點 中 國 廣東省茂名市 電白區電海街道 潘州大道與迎賓大道交叉口 學術交流中心12樓 香港主要營業地點 香 港 九龍灣 宏光道1號 億京中心B座 29樓C室 公司網站 www.tianyuangrou ...

[Company Information](index=3&type=section&id=Company%20Information) This section provides an overview of the company's governance structure, key personnel, contact details, and professional service providers [Board of Directors and Committees](index=3&type=section&id=Board%20of%20Directors%20and%20Committees) The Board comprises executive and independent non-executive directors, with changes in Audit, Remuneration, and Nomination Committee memberships during the reporting period - Board members include executive directors Zhao Lisheng (Chairman), Chen Leshen, Zhou Xuhua, and independent non-executive directors Duan Jidong, Huang Zhuolin, Zhang Jianbin (resigned), and Chu Xiaoping[8](index=8&type=chunk) - Mr. Zhang Jianbin resigned as an independent non-executive director, member of the Audit Committee, chairman of the Remuneration Committee, and member of the Nomination Committee on August 1, 2025[8](index=8&type=chunk)[197](index=197&type=chunk) - Dr. Chu Xiaoping was re-designated as Chairman of the Remuneration Committee on August 1, 2025[8](index=8&type=chunk) [Company Contact and Professional Services](index=3&type=section&id=Company%20Contact%20and%20Professional%20Services) This section details the company's secretarial and authorized representatives, registered and principal offices, main banks, and professional advisors - Mr. Chen Hanyun serves as Company Secretary, with Mr. Zhao Lisheng and Mr. Chen Hanyun as authorized representatives[8](index=8&type=chunk) - Key banks include China Construction Bank, Industrial Bank, and Nanyang Commercial Bank[9](index=9&type=chunk) - Crowe (HK) CPA Limited is the auditor[9](index=9&type=chunk) [Financial Highlights](index=5&type=section&id=Financial%20Highlights) This section presents a summary of the company's interim financial performance, liquidity, and capital structure [Overview of Interim Financial Performance](index=5&type=section&id=Overview%20of%20Interim%20Financial%20Performance) For the six months ended June 30, 2025, the company's revenue and gross profit declined, leading to a significant decrease in profit for the period and a loss attributable to owners For the Six Months Ended June 30, 2025 Financial Highlights | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Percentage Change | | :--- | :--- | :--- | :--- | | Revenue | 404,850 | 526,088 | (23.0)% | | Cost of Sales | (302,807) | (388,828) | (22.1)% | | Gross Profit | 102,043 | 137,260 | (25.7)% | | Gross Profit Margin | 25.2% | 26.1% | (0.9) percentage points | | Profit for the Period | 11,436 | 45,620 | (74.9)% | | (Loss)/Profit Attributable to Owners of the Company | (5,412) | 30,716 | Not Applicable | | Basic (Loss)/Earnings Per Share (RMB cents) | (0.94) | 5.20 | Not Applicable | | **Liquidity and Gearing** | | | | | Current Ratio | 1.14 | 1.18 | (3.4)% | | Quick Ratio | 0.92 | 0.95 | (3.2)% | | Gearing Ratio | 26.2% | 21.6% | 4.6 percentage points | [Management Discussion and Analysis](index=6&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an in-depth review of the company's market and industry, business segments, R&D, talent, sustainability, and financial performance [Market and Industry Review](index=6&type=section&id=Market%20and%20Industry%20Review) In H1 2025, Kingworld Medicines Group adapted to complex economic conditions, deepening supplier cooperation and planning for product line expansion and new project launches - In the first half of 2025, Kingworld Medicines Group flexibly adjusted its strategy and deepened national marketing cooperation with upstream suppliers, achieving steady development amidst complex economic conditions[15](index=15&type=chunk) - The second half will focus on exploring upstream cooperation potential, developing new dosages, specifications, and categories for existing products, and accelerating new cooperation projects to leverage terminal network advantages for rapid growth of newly introduced products[15](index=15&type=chunk) [Business Review](index=6&type=section&id=Business%20Review) The Group's business performance varied, with pharmaceutical sales declining, health products and daily chemicals gaining market influence, and medical devices achieving growth - The pharmaceutical distribution segment's sales were **RMB 266.2 million**, a year-on-year decrease of **25.3%**, mainly due to the decline in China's urban physical pharmacy market for proprietary Chinese medicines and rising raw material prices[16](index=16&type=chunk)[18](index=18&type=chunk) - **Seirogan** saw a year-on-year increase of **443.2%**, primarily benefiting from research findings that its main ingredient, creosote, inhibits Anisakis activity, indicating significant market potential[21](index=21&type=chunk) - **Fo Ci Kingworld Angong Niuhuang Wan** sales reached **RMB 1.5 million**, a year-on-year increase of **315.4%**, attributed to its high quality, cost-effectiveness, and inclusion in the "Chikungunya Fever Diagnosis and Treatment Plan"[27](index=27&type=chunk) - **Kingworld Imada Seihong Hua Oil** sales were **RMB 21.5 million**, a slight year-on-year decrease of **10.6%**, but its brand influence expanded through marathon sponsorships and mosquito repellent public welfare activities[23](index=23&type=chunk) - **Zhuangyao Jianshen Tablets** sales reached nearly **RMB 1.0 million**, having completed bidding for medical insurance listings in 13 provinces and cities nationwide and successfully developed distributors[30](index=30&type=chunk)[49](index=49&type=chunk) - The medical devices and equipment segment's sales were approximately **RMB 118.4 million**, a **4.0%** increase from last year, with the launch of the portable shockwave therapy device SW3200 Basic[77](index=77&type=chunk) [Key Review of Pharmaceutical Segment](index=6&type=section&id=Key%20Review%20of%20Pharmaceutical%20Segment) The pharmaceutical segment faced market challenges in H1 2025, with overall sales declining, but some key products achieved significant growth through strategic initiatives [Deepening Industrial Chain Cooperation, Consolidating Multi-channel Construction](index=11&type=section&id=Deepening%20Industrial%20Chain%20Cooperation,%20Consolidating%20Multi-channel%20Construction) The Group expanded its tier-one customer base and optimized its terminal network, while enhancing brand image and market penetration for key products through flagship stores and strategic partnerships - Tier-one customer count increased by **11.5%** to **204** in the first half, primarily driven by B2C business expansion[33](index=33&type=chunk) - The terminal network covers **182,677** outlets, including **151,589** chain and independent pharmacies, **20,414** primary healthcare institutions, and **10,655** hospitals and clinics[33](index=33&type=chunk) - The number of terminal outlets slightly decreased by **10%** compared to last year, mainly due to inventory control management and elimination of low-quality terminal networks[33](index=33&type=chunk) - **Seirogan** advanced its terminal flagship store construction plan in six major regions, covering **191** high-quality cooperative stores[34](index=34&type=chunk) - **Kingworld Imada Seihong Hua Oil** successfully established **400** flagship stores nationwide, enhancing brand image[34](index=34&type=chunk) [Strengthening Scenario-Based Interactive Marketing, Deeply Connecting with Consumer Emotions](index=12&type=section&id=Strengthening%20Scenario-Based%20Interactive%20Marketing,%20Deeply%20Connecting%20with%20Consumer%20Emotions) The Group implemented diverse scenario-based marketing strategies to foster emotional connections with consumers and enhance brand presence - **Nin Jiom Pei Pa Koa** and lozenges utilized scenario-based marketing through bus, building, and Wanda Cinema New Year advertisements[38](index=38&type=chunk) - The "Good Lungs, Good Voice" music caravan national tour covered **4** routes and **48** cities, integrating the brand into leisure and entertainment scenarios[38](index=38&type=chunk) - **Seirogan** set up "Gaokao Guardian Stations" during the college entrance exam period, providing emergency medicines and expanding brand exposure through media联动[41](index=41&type=chunk) - **Kingworld Imada Seihong Hua Oil** sponsored the 20th Asian Marathon Championships and the 2025 Jiaxing Marathon and Jinggangshan Trail Race, offering pre-race warm-up and post-race massage services[43](index=43&type=chunk) [Consolidating Online Communication and Marketing Matrix, Building a Full-Channel Brand Communication Ecosystem](index=15&type=section&id=Consolidating%20Online%20Communication%20and%20Marketing%20Matrix,%20Building%20a%20Full-Channel%20Brand%20Communication%20Ecosystem) The Group strengthened its online brand strategy through TV and streaming platform advertising, while exploring new e-commerce models to integrate online and offline sales - Brand advertisements were placed on CCTV-8 and iQiyi's hit dramas "Fearless: Never Give Up" and "Lychees in Chang'an"[46](index=46&type=chunk) - Launched the "Kingworld Cloud Chain" project, piloting the Douyin local life service platform with the first batch of **60** stores to achieve efficient online-offline linkage[48](index=48&type=chunk) - Explored leveraging Douyin's traffic aggregation effect to create popular products and tested a new marketing closed-loop of "online content generating interest, offline stores achieving instant sales"[48](index=48&type=chunk) [Revitalizing Kingworld's Proprietary Brands, Accelerating New Product Introduction](index=16&type=section&id=Revitalizing%20Kingworld's%20Proprietary%20Brands,%20Accelerating%20New%20Product%20Introduction) The Group is actively incubating proprietary brands and introducing new products through strategic collaborations to expand its market presence - **Kingworld Zhuangyao Jianshen Tablets** sales reached nearly **RMB 1.0 million**, becoming a strong product in the Group's pharmaceutical portfolio[49](index=49&type=chunk) - **Kingworld American Ginseng Capsules** gift boxes have seen increased market penetration and sales since their launch in April 2025[49](index=49&type=chunk) - Collaborated with Shang Ya Ju to cultivate Calculus Bovis slices and advanced national marketing cooperation with Qihuang Pharmaceutical for Cistanche Tubulosa Laxative Oral Liquid, an exclusive patented product expected to launch in the second half[51](index=51&type=chunk) [Key Review of Health Products and Daily Chemicals Segment](index=17&type=section&id=Key%20Review%20of%20Health%20Products%20and%20Daily%20Chemicals%20Segment) The health products and daily chemicals segment, as the Group's second-largest business, steadily increased market influence through online-offline synergy and new product introductions - Health products and daily chemicals is the Group's second-largest business segment, with **INNOPHARM** ranking fourth in overseas tonic brands on JD.com International, up one spot[54](index=54&type=chunk) - **INNOPHARM Fish Oil** published **77** product sharing notes on Xiaohongshu, accumulating over **7.6 million** exposures and **460,000** reads, successfully driving Xiaohongshu traffic to Tmall for conversion[56](index=56&type=chunk) - **Carmex Lip Balm** focused on the "lip primer" scenario, precisely targeting the 18-25 age group, achieving a **24%** year-on-year sales growth[59](index=59&type=chunk) - **Golden Partner Glucosamine Chondroitin Calcium Capsules** were deeply integrated with the Kingworld Red Flower Oil product line, creating a "topical pain relief + oral nourishment" scenario-based solution[61](index=61&type=chunk) - Introduced new products such as **German Horse Balm** and **Irish Probiotics**, and expanded into new channels including Hong Kong Yuhua Chain and HKTVMALL[65](index=65&type=chunk)[68](index=68&type=chunk) [High-Density Penetration into Emerging Communities, Connecting the Entire 'Seeding-to-Conversion' Chain](index=18&type=section&id=High-Density%20Penetration%20into%20Emerging%20Communities,%20Connecting%20the%20Entire%20'Seeding-to-Conversion'%20Chain) The Group achieved significant online exposure and sales conversion for its health products through targeted content marketing and e-commerce strategies - **INNOPHARM Fish Oil** collaborated with multi-domain professionals on Xiaohongshu, publishing **77** product sharing notes that garnered over **7.6 million** exposures and **460,000** reads[56](index=56&type=chunk) - The brand's official account continuously published **170**科普 content pieces, with over **30,000** reads, successfully diverting Xiaohongshu traffic to Tmall for conversion[56](index=56&type=chunk) - **Carmex Lip Balm** focused on the "lip primer" core scenario, precisely targeting the 18-25 age group, achieving a **24%** year-on-year sales growth[59](index=59&type=chunk) [Scenario Strategy Upgraded Again, Synergistic Product Dual-Core Driven](index=19&type=section&id=Scenario%20Strategy%20Upgraded%20Again,%20Synergistic%20Product%20Dual-Core%20Driven) The Group enhanced its scenario-based marketing for health products through sports sponsorships, innovative offline services, and product bundling strategies - **INNOPHARM Fish Oil** sponsored the Jiaxing Marathon Expo and the 2025 Jinggangshan Trail Race, achieving multi-dimensional brand exposure[60](index=60&type=chunk) - Innovated a "professional consultant" offline service model, providing scientific purchasing guidance through face-to-face communication with consumers by professional teams[60](index=60&type=chunk) - **Golden Partner Glucosamine Chondroitin Calcium Capsules** were deeply integrated with the Kingworld Red Flower Oil product line, creating a "topical pain relief + oral nourishment" scenario-based solution to drive associated sales of both products[61](index=61&type=chunk) [Enriching Product Portfolio, Continuously Developing New Channels for Leverage Communication](index=20&type=section&id=Enriching%20Product%20Portfolio,%20Continuously%20Developing%20New%20Channels%20for%20Leverage%20Communication) The Group is expanding its product offerings and distribution channels, including new R&D projects and international product introductions, supported by digital marketing - Steadily advancing the joint R&D project with Hong Kong University of Science and Technology on **Cistanche Probiotics**, expected to launch this year, targeting workplace sub-health and the elderly population[64](index=64&type=chunk) - Introduced new products from overseas to Hong Kong, such as **German Horse Balm** and **Irish Probiotics**, enriching the product portfolio[65](index=65&type=chunk) - Expanded into new channels including Hong Kong Yuhua Chain, Hong Kong Hospital Authority Staff Online Shopping Platform "Lok Hip", HKTVMALL, and Lion Life platform live streaming, and developed Kingworld's overseas independent website[68](index=68&type=chunk) - **INNOPHARM** collaborated with renowned artist Wong Cheung Hing and Facebook influencers for over **30** live streams, while Horse Balm and Probiotics also partnered with Christine Ng for live streams[70](index=70&type=chunk) [Partnering with Top European Pharmaceutical Manufacturers to Empower Product Matrix Upgrade](index=22&type=section&id=Partnering%20with%20Top%20European%20Pharmaceutical%20Manufacturers%20to%20Empower%20Product%20Matrix%20Upgrade) The Group is pursuing strategic cooperation with a leading European herbal therapy manufacturer to enhance its product matrix with international pharmaceutical-grade standards - Actively negotiating strategic cooperation with a top European herbal therapy manufacturer that adheres to European Good Manufacturing Practice (GMP) standards[72](index=72&type=chunk) - The first batch of cooperative products will focus on core areas such as joint health, sleep improvement, and immunity enhancement, aiming to introduce international leading pharmaceutical-grade standards[72](index=72&type=chunk) [Collaborating with National Scientific Research Teams, Building Core Technological Barriers](index=22&type=section&id=Collaborating%20with%20National%20Scientific%20Research%20Teams,%20Building%20Core%20Technological%20Barriers) The Group plans to deepen collaboration with academic institutions to develop global health products based on Traditional Chinese Medicine, integrating R&D, production, and sales - Plans to deepen cooperation with a senior professor team from a university, focusing on key Traditional Chinese Medicinal materials, leveraging national scientific research achievements to jointly develop health products for the global market[73](index=73&type=chunk) - The cooperation aims to integrate the "R&D-production-sales" chain, accelerating the transformation, registration, and internationalization of scientific research results through Shenzhen-Hong Kong synergy, promoting the "going global" of Traditional Chinese Medicine standards[73](index=73&type=chunk) - Focuses on key technologies such as primary processing of authentic medicinal materials, active ingredient extraction, quality standards, and fresh product storage, developing a series of products with anti-aging, anti-fatigue, and other effects, including fresh herbal extracts, natural active ingredients, and probiotic-enhanced products[73](index=73&type=chunk) [Key Review of Medical Devices and Equipment Segment](index=23&type=section&id=Key%20Review%20of%20Medical%20Devices%20and%20Equipment%20Segment) Dongdixin Technology achieved sales growth and launched an innovative portable shockwave therapy device, while deepening its domestic and international market presence - **Dongdixin Technology** sales were approximately **RMB 118.4 million**, a **4.0%** increase from last year[77](index=77&type=chunk) - Launched the new portable shockwave therapy device **SW3200 Basic**, integrating electromagnetic drive, portable design, and multi-layer conductive flexible treatment heads[77](index=77&type=chunk) - The product debuted at the 91st CMEF exhibition in Shanghai, receiving positive market feedback and showing promising prospects[77](index=77&type=chunk) [Deepening Domestic and International Layout, Significant Achievements in Strategic Cooperation](index=24&type=section&id=Deepening%20Domestic%20and%20International%20Layout,%20Significant%20Achievements%20in%20Strategic%20Cooperation) The company effectively navigated international trade challenges, expanded into new emerging markets, and strengthened its domestic presence through product re-registration and strategic partnerships - Achieved significant results in the North American market, effectively mitigating the impact of external environmental changes on first-half sales performance[78](index=78&type=chunk) - Intensified efforts to explore emerging potential markets such as South America, South Africa, and Southeast Asia, actively participating in multiple international industry exhibitions[78](index=78&type=chunk) - Completed the medical device re-registration for the biofeedback therapy device product, obtaining a five-year registration certificate[81](index=81&type=chunk) - Strategic cooperation with Merson Technology deepened, with ultrasound therapy device products ranking among the top in sales on mainstream e-commerce platforms like JD.com and Tmall[81](index=81&type=chunk) [Strengthening Internal Control and Efficiency, Multi-pronged Approach to Unleash Profit Potential](index=25&type=section&id=Strengthening%20Internal%20Control%20and%20Efficiency,%20Multi-pronged%20Approach%20to%20Unleash%20Profit%20Potential) The company optimized its quality, after-sales, and risk control systems, while implementing cost reduction and efficiency improvement strategies to enhance profitability - Established or co-established localized after-sales service response networks in major sales markets with core distributors, enhancing the timeliness and efficiency of customer issue resolution[82](index=82&type=chunk) - Optimized organizational structure and talent management through measures such as merging and streamlining positions and strengthening incentives for key employees[82](index=82&type=chunk) - Implemented cost reduction and efficiency improvement strategies, including multi-dimensional comparative procurement, bidding systems for equipment, consumables, and raw materials, saving production energy consumption, and reducing administrative expenses, effectively improving product gross profit margins[82](index=82&type=chunk) [Continuously Advancing Digital Transformation, Industry-University-Research Collaboration Driving New Product Development](index=25&type=section&id=Continuously%20Advancing%20Digital%20Transformation,%20Industry-University-Research%20Collaboration%20Driving%20New%20Product%20Development) The company is enhancing its digital manufacturing systems and leveraging AI and academic partnerships to drive product innovation and operational efficiency - Continuously advancing the optimization and upgrade of digital intelligent manufacturing systems, deepening strategic cooperation with top domestic artificial intelligence research institutes[83](index=83&type=chunk) - Actively exploring the deep application of artificial intelligence technology in improving production efficiency and empowering product research and development[83](index=83&type=chunk) - Collaborating with renowned domestic rehabilitation hospitals and the Shenzhen Institute of Advanced Technology, Chinese Academy of Sciences, on in-depth technical research in the rehabilitation field, with innovative technologies and products expected to be launched within the year[83](index=83&type=chunk) [Other Businesses](index=26&type=section&id=Other%20Businesses) Kingworld Longde Health Industrial Park consolidated its health industry ecosystem and attracted new clients, while the Group actively pursued investment opportunities for sustainable growth - **Kingworld Longde Health Industrial Park** consolidated its health industry collaborative ecosystem through industrial cooperation and policy linkage amidst macroeconomic downward pressure[84](index=84&type=chunk) - The park hosted **25** batches of government departments and business associations for visits and exchanges, adding **72** prospective clients[84](index=84&type=chunk)[89](index=89&type=chunk) - The Group actively seized investment and financing opportunities in the big health industry, leveraging its listed company advantages to integrate internal and external resources and deepen collaborative cooperation with upstream and downstream enterprises in the industry chain[91](index=91&type=chunk) [Gathering Momentum and Empowerment, with Longde Industrial Park as the Hub, Connecting the Health Industry Collaborative Ecosystem](index=26&type=section&id=Gathering%20Momentum%20and%20Empowerment,%20with%20Longde%20Industrial%20Park%20as%20the%20Hub,%20Connecting%20the%20Health%20Industry%20Collaborative%20Ecosystem) Longde Industrial Park actively engaged with industry leaders and government, hosting events and securing new clients to enhance its brand and service capabilities - Longde Health Industrial Park hosted high-level exchanges with industry leaders such as Yangtze River Pharmaceutical Group and Ningbo Tianyi Medical Co., Ltd., exploring the Greater Bay Area market and international product布局[84](index=84&type=chunk) - Received platform resource support for health technology enterprises from Longgang District Government, hosting **25** batches of government departments and business associations for visits and exchanges in the first half[84](index=84&type=chunk) - Jointly organized multiple large-scale industry exchange events with various chambers of commerce and enterprises, such as the preparatory symposium for the "National Food and Medicine Homology Industry Innovation Project - Agarwood Special Project"[87](index=87&type=chunk) - The park added **72** prospective clients and identified key platform projects such as the "Food and Medicine Homology Agarwood Base"[89](index=89&type=chunk) [Actively Seizing Investment and Financing Opportunities in the Big Health Industry, Promoting Sustainable Business Growth](index=28&type=section&id=Actively%20Seizing%20Investment%20and%20Financing%20Opportunities%20in%20the%20Big%20Health%20Industry,%20Promoting%20Sustainable%20Business%20Growth) The Group is strategically leveraging its capital market position to integrate resources, optimize financing, and strengthen industry chain collaborations for future growth - Actively seizing development opportunities in the big health industry, promoting the Group's sustainable business development through strategic investments[91](index=91&type=chunk) - Leveraging its listed company capital market advantages, integrating internal and external resources, optimizing financing platforms, and deepening collaborative cooperation with upstream and downstream enterprises in the industry chain[91](index=91&type=chunk) - The investment department will continue to focus on high-potential projects and strengthen investment布局 to provide solid support for the Group's business growth and increased investment returns[91](index=91&type=chunk) [Research and Development and Innovation](index=28&type=section&id=Research%20and%20Development%20and%20Innovation) The Group has built a robust intellectual property system and achieved significant progress in digital transformation, expense control, CRM, and AI applications - The Group and its related brands have cumulatively registered over **300** valid trademarks, **83** software copyrights, and **1** invention patent[92](index=92&type=chunk) - **Dongdixin** cumulatively holds **4** valid invention patents, **24** utility model patents, **1** design patent, and **13** software copyrights[92](index=92&type=chunk) - The market activity management system was successfully launched, achieving digital optimization and upgrade of expense control management[93](index=93&type=chunk) - The new version of the customer visit management system 2.0 was officially launched, comprehensively optimizing geolocation accuracy and visit planning rationality[93](index=93&type=chunk) - Achieved AI-powered office operations by introducing public AI interfaces, significantly improving office efficiency, and enhanced marketing and promotional content using AI digital imaging technology[93](index=93&type=chunk) - In the second half of 2025, the microservice architecture middleware will be officially launched, and the flow management system will undergo iterative upgrades[95](index=95&type=chunk) [Talent and Culture](index=29&type=section&id=Talent%20and%20Culture) The Group maintains a people-oriented approach, with a comprehensive talent development system, strategic recruitment, and a share award scheme to motivate employees - The Group has established a comprehensive talent development system, training nearly a thousand people through multi-channel recruitment, school-enterprise cooperation, headhunter partnerships, and internal promotions[96](index=96&type=chunk) - Added positions such as management accountants, introducing professional talent to assist the company in more precise analysis of various operating costs and rational allocation of strategic resources[98](index=98&type=chunk) - As of June 30, 2025, the Group had a total of **759** employees, with **137** at the Shenzhen head office, **261** stationed in **36** other regions for sales and marketing, and **361** at Dongdixin[98](index=98&type=chunk)[159](index=159&type=chunk) - On July 4, 2025, under the 2025 Share Award Scheme, a total of **3,457,600** award shares were granted at nil consideration to **70** selected participants, aiming to recognize key talent contributions and motivate the team[100](index=100&type=chunk)[195](index=195&type=chunk) [Improving Talent Development Mechanisms, Supporting New Breakthroughs in Corporate Strategy](index=29&type=section&id=Improving%20Talent%20Development%20Mechanisms,%20Supporting%20New%20Breakthroughs%20in%20Corporate%20Strategy) The Group's people-oriented approach includes robust talent development, strategic recruitment for specialized roles, and a focus on employee career growth - The Group has established a comprehensive talent development system, training nearly a thousand people through multi-channel recruitment, school-enterprise cooperation, headhunter partnerships, and internal promotions[96](index=96&type=chunk) - Added positions such as management accountants, introducing professional talent to assist the company in more precise analysis of various operating costs and rational allocation of strategic resources[98](index=98&type=chunk) - As of June 30, 2025, the Group had a total of **759** employees, with **137** at the Shenzhen head office, **261** stationed in **36** other regions, and **361** at Dongdixin[98](index=98&type=chunk)[159](index=159&type=chunk) [Continuously Advancing Share Award Scheme, Stimulating Team Vitality and Corporate Growth Momentum](index=30&type=section&id=Continuously%20Advancing%20Share%20Award%20Scheme,%20Stimulating%20Team%20Vitality%20and%20Corporate%20Growth%20Momentum) The Group's performance management and incentive mechanisms, including a share award scheme, aim to boost employee engagement and drive corporate growth - The Group has established a comprehensive performance management system and incentive mechanism, fully stimulating employee work enthusiasm and creativity[100](index=100&type=chunk) - On July 4, 2025, under the 2025 Share Award Scheme, a total of **3,457,600** award shares were granted at nil consideration to **70** selected participants[100](index=100&type=chunk)[195](index=195&type=chunk) - Of these, **1,397,600** award shares were granted to **19** connected grantees, and **2,060,000** shares to **51** non-connected grantees[100](index=100&type=chunk)[195](index=195&type=chunk) [Sustainable Development](index=31&type=section&id=Sustainable%20Development) The Group actively fulfills its corporate social responsibility through significant donations, public welfare activities, and support for sports and education - The Group donated over **RMB 680,000** in cash and pharmaceutical supplies to the earthquake-stricken areas in Xizang Autonomous Region's Xigaze City[102](index=102&type=chunk) - Launched the "Jianfu Capsule Public Welfare Donation" activity, donating Jianfu Capsules worth nearly **RMB 3 million** to help improve women's health protection standards[102](index=102&type=chunk) - Its foundation received the "2024 Guangdong Province Poverty Alleviation and Charity Kapok Cup Bronze Award"[102](index=102&type=chunk) - Continuously launched the "Summer Retreat Large-scale Monk Protection Public Welfare Activity," donating pharmaceutical supplies to over seventy famous mountains and temples nationwide[104](index=104&type=chunk) - During the Gaokao period, "Love Aid Stations" were set up near examination centers in Guangzhou, and public welfare sun shelters were erected in Haikou, Hainan, and other locations, providing emergency supplies and services[107](index=107&type=chunk) [Awards and Recognition](index=33&type=section&id=Awards%20and%20Recognition) The Group received multiple corporate, product, and public welfare honors in 2024, recognizing its contributions and brand influence - Awarded "2024-2026 Nanshan District 'Green Channel' Enterprise" and "2024 Shenzhen Health Industry Product Technology, Service Model Innovation Case"[114](index=114&type=chunk) - **Kingworld Imada Seihong Hua Oil** received "Special Runner Tribe - Running Greater Bay Area Glorious Partner"[114](index=114&type=chunk) - **Fo Ci Minshan Xiaoyao Wan** received the "2024-2025 Most Popular Brand in Hong Kong Pharmacies Award"[114](index=114&type=chunk) - Awarded "2024 Guangdong Poverty Alleviation and Charity Kapok Award Bronze" and "2024 Outstanding Enterprise for Social Responsibility"[114](index=114&type=chunk) [Individual Honors of Group Leaders](index=34&type=section&id=Individual%20Honors%20of%20Group%20Leaders) Several Group leaders were recognized with individual honors for their contributions to social responsibility, cultural communication, and innovation - Executive Director Ms. Chen Leshen received "2024 Outstanding Individual for Social Responsibility" and Southern Media Group's "New Era Shenzhen Loves Her" 3.8 Women's Day Most Beautiful Her[117](index=117&type=chunk) - Assistant to the Chairman Mr. Zhao Jianwei received the "Shining Starfish" Cultural Communication Practice Award and was appointed Executive Director of the Shenzhen Federation of Industry and Commerce[117](index=117&type=chunk) - Assistant to the Chairman Ms. Zhao Weiying was recognized as an Active CPPCC Member of Luohu District, Shenzhen, and a "Shenzhen New Generation Innovation and Entrepreneurship Figure" in the 5th edition[117](index=117&type=chunk) [Financial Review](index=35&type=section&id=Financial%20Review) The Group's H1 2025 financial performance saw a significant decline in revenue and profit, primarily due to reduced pandemic-related boosts and increased administrative expenses 2025 H1 Financial Performance | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 404,850 | 526,088 | (23.0)% | | Cost of Sales | (302,807) | (388,828) | (22.1)% | | Gross Profit | 102,043 | 137,260 | (25.7)% | | Gross Profit Margin | 25.2% | 26.1% | (0.9) percentage points | | Other Income, Revenue and Other Losses, Net | 7,877 | 4,222 | 86.6% | | Selling and Distribution Costs | (43,592) | (48,565) | (10.2)% | | Administrative Expenses | (55,020) | (42,708) | 28.8% | | Operating Profit | 15,958 | 57,929 | (72.5)% | | Finance Costs | (8,085) | (9,316) | (13.2)% | | Profit Before Tax | 13,874 | 55,466 | (75.0)% | | Income Tax | (2,438) | (9,846) | (75.2)% | | Profit for the Period | 11,436 | 45,620 | (74.9)% | | (Loss)/Profit Attributable to Owners of the Company | (5,412) | 30,716 | Not Applicable | - As of June 30, 2025, cash and cash equivalents were **RMB 230,541 thousand**, indicating adequate liquidity[131](index=131&type=chunk) - The gearing ratio was **26.2%**, an increase from **21.6%** at the end of 2024[135](index=135&type=chunk) - There were no material acquisitions or disposals, nor any significant legal or potential proceedings during the reporting period[139](index=139&type=chunk)[142](index=142&type=chunk) [Revenue](index=35&type=section&id=Revenue) The Group's revenue decreased by 23.0% year-on-year, primarily due to reduced positive effects from the lifting of pandemic control measures on its distribution business - Revenue was approximately **RMB 404,850 thousand**, a **23.0%** decrease from the same period last year[120](index=120&type=chunk) - The decrease was mainly due to reduced positive effects from the lifting of pandemic control measures on the distribution business of branded imported pharmaceutical and health products in China[120](index=120&type=chunk) - This was partially offset by increased sales of medical equipment products manufactured by Dongdixin[120](index=120&type=chunk) [Cost of Sales and Gross Profit Margin](index=35&type=section&id=Cost%20of%20Sales%20and%20Gross%20Profit%20Margin) Cost of sales decreased by 22.1% due to lower sales volume, but gross profit margin declined by 0.9 percentage points due to a shift in product mix - Cost of sales was approximately **RMB 302,807 thousand**, a year-on-year decrease of **22.1%**[121](index=121&type=chunk) - Gross profit margin decreased from **26.1%** in the same period of 2024 to **25.2%** in the same period of 2025, a **0.9** percentage point decline[121](index=121&type=chunk) - The decline in gross profit margin was mainly due to a shift in the sales mix, leading to an increased revenue contribution from lower-margin products[121](index=121&type=chunk) [Other Income, Revenue and Other Losses, Net](index=35&type=section&id=Other%20Income,%20Revenue%20and%20Other%20Losses,%20Net) Other income, revenue and other losses, net, increased by 86.6%, primarily due to reduced fair value change losses on financial assets - Other income, revenue and other losses, net, amounted to approximately **RMB 7,877 thousand**, an **86.6%** year-on-year increase[122](index=122&type=chunk) - The increase was mainly due to a reduction in fair value change losses on financial assets at fair value through profit or loss during the reporting period[122](index=122&type=chunk) [Selling and Distribution Costs](index=35&type=section&id=Selling%20and%20Distribution%20Costs) Selling and distribution costs decreased by 10.2%, mainly due to lower promotion, transportation, and storage expenses resulting from reduced sales volume - Selling and distribution costs were approximately **RMB 43,592 thousand**, a year-on-year decrease of **10.2%**[123](index=123&type=chunk) - The decrease was mainly due to reduced promotion expenses, transportation, traffic, and storage costs resulting from lower sales volume during the reporting period[123](index=123&type=chunk) [Administrative Expenses](index=35&type=section&id=Administrative%20Expenses) Administrative expenses increased by 28.8%, primarily driven by higher depreciation and research and development expenses during the reporting period - Administrative expenses were approximately **RMB 55,020 thousand**, a year-on-year increase of **28.8%**[124](index=124&type=chunk) - The increase was mainly due to higher depreciation and research and development expenses during the reporting period[124](index=124&type=chunk) [Operating Profit](index=35&type=section&id=Operating%20Profit) Operating profit decreased by 72.5%, primarily due to reduced gross profit and increased administrative expenses, partially offset by lower selling and distribution costs - Operating profit was approximately **RMB 15,958 thousand**, a year-on-year decrease of **72.5%**[125](index=125&type=chunk) - The decrease in operating profit was mainly attributable to a reduction in gross profit of approximately **RMB 35,217 thousand** and an increase in administrative expenses, partially offset by a decrease in selling and distribution costs[125](index=125&type=chunk) [Finance Costs](index=36&type=section&id=Finance%20Costs) Finance costs decreased by 13.2%, mainly due to a reduction in bank loan interest resulting from lower average bank loan interest rates - Finance costs were approximately **RMB 8,085 thousand**, a year-on-year decrease of **13.2%**[126](index=126&type=chunk) - The decrease was mainly due to a reduction in bank loan interest resulting from lower average bank loan interest rates during the reporting period[126](index=126&type=chunk) [Profit Before Tax](index=36&type=section&id=Profit%20Before%20Tax) Profit before tax decreased by 75.0%, primarily attributable to the reduction in operating profit - Profit before tax was approximately **RMB 13,874 thousand**, a year-on-year decrease of **75.0%**[127](index=127&type=chunk) - The decrease in profit before tax was mainly attributable to the reduction in operating profit[127](index=127&type=chunk) [Income Tax](index=36&type=section&id=Income%20Tax) Income tax decreased by 75.2%, with the effective tax rate for the reporting period at 16.4% - Income tax was approximately **RMB 2,438 thousand**, a year-on-year decrease of **75.2%**[128](index=128&type=chunk) - The effective tax rate for the reporting period was **16.4%**, compared to **17.8%** for the six months ended June 30, 2024[128](index=128&type=chunk) [Profit for the Period](index=36&type=section&id=Profit%20for%20the%20Period) Profit for the period decreased by 74.9% to RMB 11,436 thousand - Profit for the period was approximately **RMB 11,436 thousand**, a year-on-year decrease of **74.9%**[129](index=129&type=chunk) [Loss/Profit Attributable to Owners of the Company for the Period](index=36&type=section&id=Loss%2FProfit%20Attributable%20to%20Owners%20of%20the%20Company%20for%20the%20Period) The Group recorded a loss attributable to owners of the company of RMB 5,412 thousand, a significant shift from a profit in the prior year - The loss attributable to owners of the company for the period was approximately **RMB 5,412 thousand**, compared to a profit of approximately **RMB 30,716 thousand** in the same period last year[130](index=130&type=chunk) [Liquidity and Sources of Funding](index=36&type=section&id=Liquidity%20and%20Sources%20of%20Funding) The Group maintains sufficient working capital, primarily funded by operations and bank borrowings, with cash and cash equivalents at RMB 230,541 thousand - As of June 30, 2025, cash and cash equivalents amounted to **RMB 230,541 thousand**[131](index=131&type=chunk) - The effective interest rate for fixed-rate loans ranged from **3.3%** to **7.0%**[131](index=131&type=chunk) - The directors believe the Group has sufficient working capital to meet its funding requirements for at least the next twelve months from the date of this interim report[131](index=131&type=chunk) [Cash Flows](index=37&type=section&id=Cash%20Flows) The Group experienced a net decrease in cash and cash equivalents, with operating activities generating positive cash flow but investing and financing activities consuming cash - During the reporting period, cash and cash equivalents decreased by approximately **RMB 4,758 thousand**[133](index=133&type=chunk) 2025 H1 Cash Flows | Cash Flow Activity | Amount (RMB thousand) | | :--- | :--- | | Net Cash Inflow from Operating Activities | 5,884 | | Net Cash Outflow from Investing Activities | (7,516) | | Net Cash Outflow from Financing Activities | (2,191) | | Net Effect of Exchange Rate Changes | (935) | [Capital Structure](index=37&type=section&id=Capital%20Structure) The Group's total borrowings increased, leading to a higher gearing ratio, with various assets pledged as collateral for bank financing - As of June 30, 2025, total borrowings were approximately **RMB 413,754 thousand**, an increase from **RMB 387,616 thousand** at the end of 2024[134](index=134&type=chunk) - The gearing ratio was **26.2%**, an increase from **21.6%** at the end of 2024[135](index=135&type=chunk) 2025 H1 Asset Pledges | Pledged Asset Category | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Investment Properties | 111,600 | 107,000 | | Right-of-Use Assets | 92,681 | 94,257 | | Property, Plant and Equipment | 207,610 | 15,526 | - Capital expenditure during the reporting period was approximately **RMB 1,955 thousand**, mainly for the acquisition of property, plant and equipment[137](index=137&type=chunk) - The Group is exposed to foreign exchange risk arising from RMB, HKD, EUR, and USD[138](index=138&type=chunk) [Contingent Liabilities, Legal and Potential Proceedings](index=38&type=section&id=Contingent%20Liabilities,%20Legal%20and%20Potential%20Proceedings) The Group had no significant legal or potential proceedings as of June 30, 2025, with a prior lawsuit concluded without material adverse impact - As of June 30, 2025, the Group had no significant legal or potential proceedings[139](index=139&type=chunk) - A lawsuit involving the 15% equity transfer of Dongdixin concluded in February 2025, when the Shenzhen People's Procuratorate of Guangdong Province disapproved the retrial application[141](index=141&type=chunk) - This lawsuit had no and will not have any material adverse impact on the normal operations and financial position of the Company and its subsidiaries[141](index=141&type=chunk) [Material Acquisitions and Disposals](index=38&type=section&id=Material%20Acquisitions%20and%20Disposals) The Group did not undertake any material acquisitions or disposals during the six months ended June 30, 2025 - For the six months ended June 30, 2025, the Group had no material acquisitions or disposals[142](index=142&type=chunk) [Going Concern](index=38&type=section&id=Going%20Concern) The Group's financial statements are prepared on a going concern basis, supported by sufficient financial resources for the foreseeable future - Based on its current financial position and available financing, the Group has sufficient financial resources to continue operating for the foreseeable future[143](index=143&type=chunk) - The financial statements have been prepared on a going concern basis[143](index=143&type=chunk) [Future Outlook](index=39&type=section&id=Future%20Outlook) The Group plans to deepen its core strategy, accelerate new product launches, and expand international cooperation to address market challenges and capitalize on health industry trends - In the first half of 2025, China's GDP grew by **5.3%** year-on-year, total retail sales of consumer goods increased by **5.0%**, and national residents' per capita disposable income grew by **5.4%** in real terms[145](index=145&type=chunk) - China's total import and export trade of pharmaceutical and health products reached **USD 97.95 billion**, a year-on-year increase of **0.23%**, with exports growing by **3.80%** to **USD 54.539 billion**[146](index=146&type=chunk) - Per capita healthcare consumption expenditure reached **RMB 1,314**, a year-on-year increase of **3.4%**, accounting for **9.2%** of per capita consumption expenditure[147](index=147&type=chunk) - Medical insurance centralized procurement continued to deepen, with the third batch of proprietary Chinese medicine centralized procurement implemented across **26** provinces nationwide in April 2025, covering **95** products[149](index=149&type=chunk) - Ai Media Consulting predicts that China's pharmaceutical e-commerce market size will exceed **RMB 340 billion** by 2026[152](index=152&type=chunk) - The Group will continue to deepen its core strategy, actively replicate successful product experiences, accelerate the launch of new products with market potential, and continuously optimize its product structure[155](index=155&type=chunk) - In the domestic market, leveraging the "food and medicine homology" concept, the Group will deepen industry-university-research cooperation with top universities like Hong Kong University of Science and Technology to strategically布局 "Cistanche Tubulosa Laxative Oral Liquid"[156](index=156&type=chunk) - In overseas markets, the Group will deepen strategic cooperation with international leading brands in herbal medicine, introducing distinctive products centered on botanical drugs to address emerging health pain points[156](index=156&type=chunk) [Industry Landscape and Trends](index=39&type=section&id=Industry%20Landscape%20and%20Trends) China's health industry showed robust growth in H1 2025, driven by economic expansion, increased health awareness, and policy support for Traditional Chinese Medicine and e-commerce - In the first half of 2025, China's GDP reached **RMB 66,053.6 billion**, a year-on-year increase of **5.3%**; total retail sales of consumer goods reached **RMB 24,545.8 billion**, a year-on-year increase of **5.0%**; national residents' per capita disposable income was **RMB 21,840**, a real increase of **5.4%**[145](index=145&type=chunk) - China's total import and export trade of pharmaceutical and health products reached **USD 97.95 billion**, a year-on-year increase of **0.23%**, with exports at **USD 54.539 billion**, a year-on-year increase of **3.80%**[146](index=146&type=chunk) - Per capita healthcare consumption expenditure reached **RMB 1,314**, a year-on-year increase of **3.4%**, and its proportion in per capita consumption expenditure rose to **9.2%**[147](index=147&type=chunk) - In the first half of 2025, the National Medical Products Administration approved **14** new Traditional Chinese Medicine drugs, including **5** innovative Traditional Chinese Medicine drugs[150](index=150&type=chunk) - Ai Media Consulting predicts that China's pharmaceutical e-commerce market size will exceed **RMB 340 billion** by 2026[152](index=152&type=chunk) [Challenges and Strategies](index=41&type=section&id=Challenges%20and%20Strategies) Facing a downturn in physical pharmacy sales, the Group plans to accelerate new product launches, optimize its product structure, and expand strategic collaborations in both domestic and international markets - In Q1 2025, retail sales of proprietary Chinese medicines were **RMB 41.2 billion**, a year-on-year decrease of **7.67%**[153](index=153&type=chunk) - From January to June 2025, the cumulative scale of China's physical pharmacies was **RMB 296.1 billion**, a **2.2%** decline from the same period last year[153](index=153&type=chunk) - The Group will continue to deepen its core strategy, actively replicate successful product experiences, accelerate the launch of new products with market potential, and continuously optimize its product structure[155](index=155&type=chunk) - In the domestic market, leveraging the "food and medicine homology" concept, the Group will deepen industry-university-research cooperation with top universities like Hong Kong University of Science and Technology to strategically布局 "Cistanche Tubulosa Laxative Oral Liquid"[156](index=156&type=chunk) - In overseas markets, the Group will deepen strategic cooperation with international leading brands in herbal medicine, introducing distinctive products centered on botanical drugs to address emerging health pain points such as sleep disorders, emotional tension, and post-COVID lung function recovery[156](index=156&type=chunk) [Conclusion](index=42&type=section&id=Conclusion) Kingworld Medicines Group is committed to proactive development in the big health sector, focusing on innovation, service upgrades, and strengthening core competitiveness - Kingworld Medicines Group will work together with employees and partners to flexibly adjust strategic implementation in the "VUCA era"[157](index=157&type=chunk) - Upholding the spirit of proactive progress and sincere altruism, the Group will deeply cultivate the big health sector, promote product innovation and service upgrades, and strengthen core competitiveness[157](index=157&type=chunk) [Other Information](index=43&type=section&id=Other%20Information) This section covers the Group's human resources, equity disclosures, share schemes, capital commitments, public float, dividends, securities transactions, corporate governance, and post-reporting period events [Human Resources and Training](index=43&type=section&id=Human%20Resources%20and%20Training) The Group employs 759 staff across its head office, regional sales, and Dongdixin, with a focus on training and incentive programs to enhance efficiency - As of June 30, 2025, the Group had a total of **759** employees[159](index=159&type=chunk) - Of these, **137** were employed at the Shenzhen head office, **261** were stationed in **36** other regions performing sales and marketing duties, and **361** were employed at Dongdixin[159](index=159&type=chunk) - For the six months ended June 30, 2025, the total remuneration paid by the Group to employees was approximately **RMB 61,110 thousand** (2024: approximately **RMB 66,559 thousand**)[159](index=159&type=chunk) - The Group employs various incentive mechanisms to enhance employee efficiency, regularly assesses employee performance, and provides training for different functional employees[159](index=159&type=chunk) [Disclosure of Interests](index=44&type=section&id=Disclosure%20of%20Interests) This section details the interests and short positions of the Company's directors, chief executive, and substantial shareholders in the Company's shares and underlying shares [Interests and Short Positions of Directors and Chief Executive in Shares, Underlying Shares and Debentures of the Company and its Associated Corporations](index=44&type=section&id=Interests%20and%20Short%20Positions%20of%20Directors%20and%20Chief%20Executive%20in%20Shares,%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20and%20its%20Associated%20Corporations) The table below summarizes the interests and short positions of the Company's directors and chief executive in the Company's shares as of June 30, 2025 Interests of Directors and Chief Executive in Company Shares (as of June 30, 2025) | Director Name | Capacity/Nature of Interest | Number of Company Shares Held | Approximate Percentage of Total Issued Share Capital of the Company | | :--- | :--- | :--- | :--- | | Zhao Lisheng | Beneficial Owner | 24,720,000 | 3.97% | | | Spouse's Interest | 90,448,000 | 14.53% | | | Interest in Controlled Corporation | 297,812,250 | 47.84% | | Chen Leshen | Beneficial Owner | 448,000 | 0.07% | | | Spouse's Interest | 322,532,250 | 51.81% | | | Interest in Controlled Corporation | 90,000,000 | 14.46% | | Zhou Xuhua | Beneficial Owner | 296,000 | 0.05% | | | Spouse's Interest | 2,380,000 | 0.38% | | Zhang Jianbin | Beneficial Owner | 248,000 | 0.04% | | Duan Jidong | Beneficial Owner | 212,000 | 0.03% | | Huang Zhuolin | Beneficial Owner | 212,000 | 0.03% | Interests of Directors in Shares of Associated Corporations (as of June 30, 2025) | Director Name | Name of Associated Corporation | Capacity/Nature of Interest | Percentage of Equity Interest | | :--- | :--- | :--- | :--- | | Zhao Lisheng | Kingworld | Beneficial Owner | 100% | | Chen Leshen | Jinchen | Beneficial Owner | 100% | [Interests and Short Positions of Substantial Shareholders in Shares and Underlying Shares of the Company](index=46&type=section&id=Interests%20and%20Short%20Positions%20of%20Substantial%20Shareholders%20in%20Shares%20and%20Underlying%20Shares%20of%20the%20Company) The table below outlines the interests and short positions of substantial shareholders in the Company's shares as of June 30, 2025 Interests of Substantial Shareholders in Company Shares (as of June 30, 2025) | Shareholder Name | Capacity/Nature of Interest | Number of Company Shares Held | Approximate Percentage of Total Issued Share Capital of the Company | | :--- | :--- | :--- | :--- | | Kingworld | Beneficial Owner | 297,812,250 | 47.84% | | Jinchen | Beneficial Owner | 90,000,000 | 14.46% | | Zhao Lisheng | Beneficial Owner | 24,720,000 | 3.97% | | | Spouse's Interest | 90,448,000 | 14.53% | | | Interest in Controlled Corporation | 297,812,250 | 47.84% | | Chen Leshen | Beneficial Owner | 448,000 | 0.07% | | | Spouse's Interest | 322,532,250 | 51.81% | | | Interest in Controlled Corporation | 90,000,000 | 14.46% | | Sinopharm Healthcare Fund L.P

2025 中期報告 目錄 | 公司資料 | 2 | | --- | --- | | 管理層討論及分析 | 4 | | 企業管治及其他資料 | 13 | | 簡明綜合損益表 | 21 | | 簡明綜合全面收益表 | 22 | | 簡明綜合財務狀況表 | 23 | | 簡明綜合權益變動表 | 25 | | 簡明綜合現金流量表 | 27 | | 簡明綜合財務報表附註 | 29 | 公司資料 於2025年8月28日 董事會 執行董事 袁紅兵先生 （主席） 閆潔華女士 （行政總裁） （於2025年8月15日獲委任） 非執行董事 陳運偉先生 曹玉奇女士（於2025年8月4日辭任） 獨立非執行董事 謝慶豪先生 麥天生先生 江浩先生 審核委員會 謝慶豪先生 （委員會主席） 麥天生先生 江浩先生 薪酬委員會 麥天生先生 （委員會主席） 袁紅兵先生 謝慶豪先生 江浩先生 提名委員會 袁紅兵先生 （委員會主席） 閆潔華女士 謝慶豪先生 麥天生先生 江浩先生 法定代表 葉昇先生 袁紅兵先生 公司秘書 葉昇先生 註冊辦事處 Cricket Square Hutchins Drive, P.O. Box 2681 Grand Cayma ...