[**Company Information and Report Overview**](index=1&type=section&id=Company%20Information%20and%20Report%20Overview) [**Basic Report Information**](index=1&type=section&id=Basic%20Report%20Information) SunCorp Technologies Limited (新確科技有限公司) released its unaudited condensed consolidated interim results for H1 2025, with H1 2024 comparative data - Report Type: Unaudited Condensed Consolidated Interim Results[1](index=1&type=chunk)[2](index=2&type=chunk) - Reporting Period: Six months ended June 30, 2025[1](index=1&type=chunk)[2](index=2&type=chunk) - Company Name: SunCorp Technologies Limited (新確科技有限公司), Stock Code: **1063**[1](index=1&type=chunk) [**Financial Statements**](index=1&type=section&id=Financial%20Statements) [**Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income**](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For H1 2025, revenue grew to HK$25,167 thousand, with operating profit of HK$21,491 thousand reversing a prior-year loss, mainly due to unrealized gains on financial assets Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | 2025 (HK$ '000) | 2024 (HK$ '000) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 25,167 | 17,198 | +46.3% | | Cost of Sales | (18,134) | (10,142) | +78.8% | | Gross Profit | 7,033 | 7,056 | -0.3% | | Other Income | 157 | 45 | +248.9% | | Operating Profit/(Loss) | 21,491 | (38,758) | N/A (Turned to profit) | | Profit/(Loss) Before Tax | 21,393 | (38,799) | N/A (Turned to profit) | | Profit/(Loss) and Total Comprehensive Income for the Period | 21,393 | (38,799) | N/A (Turned to profit) | | Basic and Diluted Earnings/(Loss) Per Share (HK cents) | 1.39 | (2.52) | N/A (Turned to profit) | - Operating profit for the period was **HK$21,491 thousand**, a significant turnaround from a loss of **HK$38,758 thousand** in the same period last year[3](index=3&type=chunk) - The turnaround to profit was primarily attributable to **HK$20,253 thousand** in unrealized gains on financial assets at fair value through profit or loss[3](index=3&type=chunk) [**Condensed Consolidated Statement of Financial Position**](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total net assets increased to HK$219,298 thousand, with net current assets of HK$225,175 thousand driven by financial assets and loans receivable growth Key Data from Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (HK$ '000) | Dec 31, 2024 (HK$ '000) | Change (HK$ '000) | | :--- | :--- | :--- | :--- | | Non-current Assets | 244 | 359 | (115) | | Current Assets | 278,493 | 231,109 | +47,384 | | Current Liabilities | 53,318 | 31,943 | +21,375 | | Non-current Liabilities | 6,121 | 1,620 | +4,501 | | Net Assets | 219,298 | 197,905 | +21,393 | | Financial Assets at Fair Value Through Profit or Loss | 104,102 | 80,971 | +23,131 | | Loans Receivable | 97,240 | 91,687 | +5,553 | | Cash and Bank Balances (Own Accounts) | 14,428 | 14,775 | (347) | | Share Capital | 9,231 | 9,231 | 0 | | Reserves | 210,647 | 189,254 | +21,393 | - Net current assets increased from **HK$199,166 thousand** as of December 31, 2024, to **HK$225,175 thousand** as of June 30, 2025[5](index=5&type=chunk) - An increase of **HK$23,131 thousand** in financial assets at fair value through profit or loss and **HK$5,553 thousand** in loans receivable were the main drivers of current asset growth[5](index=5&type=chunk) [**Condensed Consolidated Statement of Changes in Equity**](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For H1 2025, total equity attributable to owners increased from HK$197,905 thousand to HK$219,298 thousand, primarily due to the HK$21,393 thousand profit realized Key Data from Condensed Consolidated Statement of Changes in Equity | Indicator | June 30, 2025 (HK$ '000) | Jan 1, 2025 (HK$ '000) | June 30, 2024 (HK$ '000) | Jan 1, 2024 (HK$ '000) | | :--- | :--- | :--- | :--- | :--- | | Share Capital | 9,231 | 9,231 | 9,231 | 9,231 | | Share Premium | 129,910 | 129,910 | 129,910 | 129,910 | | Accumulated Losses | (375,461) | (396,854) | (390,267) | (351,469) | | Capital and Reserves Attributable to Owners of the Company | 219,878 | 198,485 | 205,051 | 243,729 | | Non-controlling Interests | (580) | (580) | (456) | (455) | | Total Equity | 219,298 | 197,905 | 204,475 | 243,274 | - Profit for the period of **HK$21,393 thousand** directly contributed to the growth in equity attributable to owners of the company[7](index=7&type=chunk) - Accumulated losses decreased from **(HK$396,854 thousand)** as of January 1, 2025, to **(HK$375,461 thousand)** as of June 30, 2025, reflecting the period's profitability[7](index=7&type=chunk) [**Condensed Consolidated Statement of Cash Flows**](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For H1 2025, net cash used in operating activities was HK$4,494 thousand, with net cash from investing activities of HK$95 thousand and financing activities of HK$4,052 thousand, resulting in period-end cash of HK$14,428 thousand Key Data from Condensed Consolidated Statement of Cash Flows | Indicator | 2025 (HK$ '000) | 2024 (HK$ '000) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (4,494) | (1,427) | | Net Cash From Investing Activities | 95 | 8 | | Net Cash From/(Used in) Financing Activities | 4,052 | (940) | | Net Decrease in Cash and Cash Equivalents | (347) | (2,359) | | Cash and Cash Equivalents at End of Period | 14,428 | 19,162 | - Cash outflow from operating activities increased from **HK$1,427 thousand** in the same period of 2024 to **HK$4,494 thousand** in 2025[9](index=9&type=chunk) - Cash flow from financing activities turned from an outflow of **HK$940 thousand** in the same period of 2024 to an inflow of **HK$4,052 thousand** in 2025[9](index=9&type=chunk) [**Notes to the Condensed Consolidated Financial Statements**](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [**Basis of Preparation**](index=6&type=section&id=Basis%20of%20Preparation) The financial statements are prepared under HKEX Listing Rules Appendix D2 and HKAS 34 'Interim Financial Reporting', using a historical cost basis, with some financial instruments measured at fair value - Basis of Preparation: Appendix D2 to the Listing Rules of the Stock Exchange of Hong Kong and Hong Kong Accounting Standard 34 'Interim Financial Reporting'[10](index=10&type=chunk)[15](index=15&type=chunk) - Measurement Basis: Historical cost basis, except for certain financial instruments measured at fair value[11](index=11&type=chunk)[15](index=15&type=chunk) - Accounting Policies: Consistent with those followed in the preparation of the Group's annual financial statements for the year ended December 31, 2024[12](index=12&type=chunk)[15](index=15&type=chunk) [**Adoption of New Accounting Standards**](index=6&type=section&id=Adoption%20of%20New%20Accounting%20Standards) This period adopted HKAS 21 (Amendment) 'Lack of Exchangeability', which had no material impact on the Group's financial position or performance - Adoption of New Standards: HKAS 21 (Amendment) 'Lack of Exchangeability' became effective for the financial year beginning January 1, 2025[14](index=14&type=chunk)[16](index=16&type=chunk) - Impact: The adoption of new standards had no material impact on the Group's unaudited condensed consolidated financial position and performance for the current and prior periods[14](index=14&type=chunk)[16](index=16&type=chunk) [**Revenue and Segment Information**](index=7&type=section&id=Revenue%20and%20Segment%20Information) The Group's revenue and results are reported across three main segments: trading, money lending, and brokerage services, with H1 2025 total revenue of HK$25,167 thousand, primarily from trading - Reportable Segments: The Group's reportable and operating segments, as defined by HKFRS 8, include: trading of second-hand computer-related components, apparel and beauty products; money lending business; and provision of brokerage, placing, and underwriting services[18](index=18&type=chunk)[22](index=22&type=chunk) - Total Revenue: Total revenue for H1 2025 was **HK$25,167 thousand**[21](index=21&type=chunk) [**Segment Revenue and Results**](index=7&type=section&id=Segment%20Revenue%20and%20Results) In H1 2025, trading revenue was HK$19,037 thousand, money lending revenue was HK$5,855 thousand, and brokerage revenue was HK$275 thousand, with segment profit mainly from money lending and brokerage recording a loss H1 2025 Segment Revenue and Profit/(Loss) | Segment | 2025 Revenue (HK$ '000) | 2024 Revenue (HK$ '000) | 2025 Segment Profit/(Loss) (HK$ '000) | 2024 Segment Profit/(Loss) (HK$ '000) | | :--- | :--- | :--- | :--- | :--- | | Trading of Second-hand Computer-related Components, Apparel and Beauty Products | 19,037 | 11,036 | 140 | 126 | | Money Lending | 5,855 | 6,117 | 4,158 | 5,953 | | Provision of Brokerage, Placing and Underwriting Services | 275 | 45 | (2,888) | (1,888) | | **Total** | **25,167** | **17,198** | **1,410** | **4,191** | - Revenue from trading second-hand computer-related components, apparel, and beauty products increased by **72.5%** year-on-year[21](index=21&type=chunk)[24](index=24&type=chunk) - Money lending business revenue slightly decreased but remained the primary contributor to segment profit[21](index=21&type=chunk)[24](index=24&type=chunk) - The provision of brokerage, placing, and underwriting services business continued to record losses, with the loss amount expanding year-on-year[21](index=21&type=chunk)[24](index=24&type=chunk) [**Segment Assets and Liabilities**](index=8&type=section&id=Segment%20Assets%20and%20Liabilities) As of June 30, 2025, total segment assets were HK$163,247 thousand, with money lending having the highest asset proportion, and total segment liabilities were HK$49,457 thousand, with brokerage having the highest liabilities Segment Assets and Liabilities (June 30, 2025 vs December 31, 2024) | Segment | June 30, 2025 Assets (HK$ '000) | Dec 31, 2024 Assets (HK$ '000) | June 30, 2025 Liabilities (HK$ '000) | Dec 31, 2024 Liabilities (HK$ '000) | | :--- | :--- | :--- | :--- | :--- | | Trading of Second-hand Computer-related Components, Apparel and Beauty Products | 26,070 | 19,687 | 6,589 | 1,503 | | Money Lending | 97,881 | 92,328 | 12,222 | 11,199 | | Provision of Brokerage, Placing and Underwriting Services | 39,296 | 25,442 | 30,646 | 15,566 | | **Total Segments** | **163,247** | **137,457** | **49,457** | **28,268** | | Unallocated Assets/Liabilities | 115,490 | 94,011 | 9,982 | 5,295 | | **Consolidated Total** | **278,737** | **231,468** | **59,439** | **33,563** | - Total segment assets increased from **HK$137,457 thousand** as of December 31, 2024, to **HK$163,247 thousand** as of June 30, 2025[27](index=27&type=chunk) - Total segment liabilities significantly increased from **HK$28,268 thousand** as of December 31, 2024, to **HK$49,457 thousand** as of June 30, 2025[29](index=29&type=chunk) [**Major Customer Information**](index=9&type=section&id=Major%20Customer%20Information) In H1 2025, Customer A and Customer B became new major clients, contributing HK$6,475 thousand and HK$2,700 thousand respectively, with all major client revenue from trading business Major Customer Revenue Contribution (Over 10% of Total Revenue) | Customer | 2025 (HK$ '000) | 2024 (HK$ '000) | Business Source | | :--- | :--- | :--- | :--- | | Customer A | 6,475 | – | Trading of Second-hand Computer-related Components, Apparel and Beauty Products | | Customer B | 2,700 | – | Trading of Second-hand Computer-related Components, Apparel and Beauty Products | | Customer C | 2,833 | 4,193 | Trading of Second-hand Computer-related Components, Apparel and Beauty Products | | Customer D | – | 1,813 | Trading of Second-hand Computer-related Components, Apparel and Beauty Products | - In H1 2025, Customer A and Customer B became new major revenue contributors, while Customer D was no longer a major client[32](index=32&type=chunk) - All major customer revenue was derived from the trading of second-hand computer-related components, apparel, and beauty products business[33](index=33&type=chunk) [**Other Income**](index=10&type=section&id=Other%20Income) Total other income for H1 2025 amounted to HK$157 thousand, a significant increase from HK$45 thousand in H1 2024, primarily driven by higher miscellaneous income and gains from associate disposal Other Income Details | Item | 2025 (HK$ '000) | 2024 (HK$ '000) | | :--- | :--- | :--- | | Bank Interest Income | 15 | 8 | | Gain on Disposal of an Associate | 4 | – | | Miscellaneous Income | 138 | 37 | | **Total** | **157** | **45** | - Other income increased by **248.9%** year-on-year, primarily driven by miscellaneous income and gains from the disposal of an associate[35](index=35&type=chunk) [**Income Tax**](index=10&type=section&id=Income%20Tax) For H1 2025 and H1 2024, no Hong Kong profits tax was provided for the Group's Hong Kong subsidiaries due to no assessable profits or sufficient tax losses for offset - No Hong Kong profits tax was provided for the current and prior periods[36](index=36&type=chunk)[37](index=37&type=chunk) - This was due to Hong Kong subsidiaries having no assessable profits or sufficient tax losses for offset[36](index=36&type=chunk)[37](index=37&type=chunk) [**Profit/(Loss) for the Period**](index=10&type=section&id=Profit%2F(Loss)%20for%20the%20Period) Profit/(Loss) for the period is presented after accounting for cost of goods, depreciation, exchange losses, net reversal of impairment loss on loans, gain on associate disposal, and staff costs Key Factors Affecting Profit/(Loss) for the Period | Item | 2025 (HK$ '000) | 2024 (HK$ '000) | | :--- | :--- | :--- | | Cost of Goods and Services Sold Recognized | 18,134 | 10,142 | | Depreciation of Right-of-use Assets | 39 | – | | Net Exchange Losses | 2 | 3 | | Net Reversal of Impairment Loss on Loans Receivable | (28) | – | | Gain on Disposal of an Associate | (4) | – | | Staff Costs (Including Directors' Emoluments) | 3,018 | 2,845 | - Cost of goods and services sold significantly increased from **HK$10,142 thousand** in 2024 to **HK$18,134 thousand** in 2025[39](index=39&type=chunk) - A net reversal of impairment loss on loans receivable of **HK$28 thousand** was recognized in 2025, with no such item in 2024[39](index=39&type=chunk) [**Earnings/(Loss) Per Share**](index=11&type=section&id=Earnings%2F(Loss)%20Per%20Share) For H1 2025, basic and diluted earnings per share attributable to owners were 1.39 HK cents, compared to a loss of 2.52 HK cents per share in H1 2024, marking a turnaround to profitability Earnings/(Loss) Per Share | Indicator | 2025 (HK cents) | 2024 (HK cents) | | :--- | :--- | :--- | | Basic and Diluted Earnings/(Loss) Per Share | 1.39 | (2.52) | - Profit for the period attributable to owners of the company turned from a loss of **HK$38,799 thousand** in the same period of 2024 to a profit of **HK$21,393 thousand** in 2025[40](index=40&type=chunk) - Diluted earnings/(loss) per share was not presented as there were no potential ordinary shares in issue for the periods ended June 30, 2025, and 2024[40](index=40&type=chunk) [**Dividends**](index=11&type=section&id=Dividends) For the six months ended June 30, 2025, and 2024, no dividends were paid or proposed by the company - No dividends were paid or proposed for the six months ended June 30, 2025, and 2024[40](index=40&type=chunk)[41](index=41&type=chunk) [**Trade and Other Receivables**](index=12&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables amounted to HK$29,325 thousand, an increase from HK$22,658 thousand, with a significant rise in trade receivables from other ordinary businesses Trade and Other Receivables Details | Item | June 30, 2025 (HK$ '000) | Dec 31, 2024 (HK$ '000) | | :--- | :--- | :--- | | Trade Receivables from Securities Trading Business (Cash Clients) | 530 | 394 | | Trade Receivables from Other Ordinary Businesses (Net of Allowance) | 17,927 | 10,836 | | Deposits, Prepayments and Other Receivables (Net of Allowance) | 10,868 | 11,428 | | **Total** | **29,325** | **22,658** | - Total trade and other receivables increased by **HK$6,667 thousand**[43](index=43&type=chunk) - The Group grants credit terms of **30 to 90 days** for goods sold to trade customers[43](index=43&type=chunk) [**Amounts Due from Securities Brokers**](index=13&type=section&id=Amounts%20Due%20from%20Securities%20Brokers) As of June 30, 2025, amounts due from securities brokers were HK$201 thousand, a decrease from HK$442 thousand, representing unsecured deposits with annual interest rates from 0% to 0.01%, repayable on demand - Amounts due from securities brokers were **HK$201 thousand**, a decrease from **HK$442 thousand** as of December 31, 2024[46](index=46&type=chunk)[47](index=47&type=chunk) - These amounts are unsecured deposits bearing interest at **0% to 0.01%** per annum and are repayable on demand[46](index=46&type=chunk)[47](index=47&type=chunk) [**Loans Receivable**](index=13&type=section&id=Loans%20Receivable) As of June 30, 2025, total loans receivable amounted to HK$97,240 thousand, an increase from HK$91,687 thousand, originating from money lending, denominated in HKD, with fixed effective annual interest rates between 8% and 10% Loans Receivable Details | Item | June 30, 2025 (HK$ '000) | Dec 31, 2024 (HK$ '000) | | :--- | :--- | :--- | | Gross Loans Receivable | 160,362 | 154,837 | | Less: Allowance for Expected Credit Losses | (63,122) | (63,150) | | **Net Amount** | **97,240** | **91,687** | - Net loans receivable increased by **HK$5,553 thousand**, primarily from the money lending business[49](index=49&type=chunk)[50](index=50&type=chunk) - Loans are denominated in HKD, bear fixed effective annual interest rates of **8% to 10%**, have a one-year term, and the Group reserves the right to demand immediate repayment at any time[51](index=51&type=chunk)[52](index=52&type=chunk) [**Trade and Other Payables**](index=14&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables significantly increased to HK$52,233 thousand from HK$30,409 thousand, primarily driven by growth in trade payables from securities trading and goods purchases Trade and Other Payables Details | Item | June 30, 2025 (HK$ '000) | Dec 31, 2024 (HK$ '000) | | :--- | :--- | :--- | | Trade Payables from Securities Trading Business (Cash Clients) | 29,686 | 15,039 | | Trade Payables from Other Ordinary Businesses (Purchase of Goods) | 5,574 | 18 | | Other Payables and Accruals | 16,773 | 15,152 | | Provision for Restoration Costs | 200 | 200 | | **Total** | **52,233** | **30,409** | - Total trade and other payables increased by **HK$21,824 thousand**[54](index=54&type=chunk) - Credit terms for goods purchased are **30 to 60 days**, and settlement for trade payables arising from securities trading is **two days** after the transaction date[54](index=54&type=chunk)[55](index=55&type=chunk)[57](index=57&type=chunk) [**Share Capital**](index=14&type=section&id=Share%20Capital) As of June 30, 2025, the company's authorized share capital was HK$600,000 thousand, divided into 100,000,000,000 ordinary shares of HK$0.006 each, with issued and fully paid share capital of HK$9,231 thousand, unchanged during the reporting period Share Capital Structure | Item | Quantity | Amount (HK$ '000) | | :--- | :--- | :--- | | Authorized Share Capital (HK$0.006 per share) | 100,000,000,000 shares | 600,000 | | Issued and Fully Paid Share Capital (HK$0.006 per share) | 1,538,536,566 shares | 9,231 | - There were no changes in authorized and issued share capital during the reporting period[57](index=57&type=chunk) [**Directors' Report**](index=15&type=section&id=Directors'%20Report) [**Business Review**](index=15&type=section&id=Business%20Review) For H1 2025, the Group's revenue was approximately HK$25.2 million, a 46.3% year-on-year increase, primarily from trading computer-related components, apparel, and beauty products (75.6%) and money lending interest income (23.3%) - Total revenue was approximately **HK$25.2 million**, an increase of approximately **46.3%** compared to the same period in 2024[59](index=59&type=chunk)[66](index=66&type=chunk) - Revenue composition: trading computer-related components, apparel, and beauty products accounted for approximately **75.6%**; money lending business interest income approximately **23.3%**; and securities brokerage, placing, and underwriting business approximately **1.1%**[59](index=59&type=chunk)[66](index=66&type=chunk) - Consolidated profit was approximately **HK$21.4 million**, mainly due to approximately **HK$20.3 million** in unrealized gains on financial assets at fair value through profit or loss[60](index=60&type=chunk)[66](index=66&type=chunk) [**Outlook and Prospects**](index=15&type=section&id=Outlook%20and%20Prospects) Facing an unpredictable business environment, the Group is evaluating various business segments and repositioning its strategy to focus on more promising areas, having obtained Type 4 and Type 9 licenses for operating a virtual asset trading platform - The Group is evaluating various business segments and repositioning its strategy and business operations towards more promising segments[62](index=62&type=chunk)[67](index=67&type=chunk) - Obtained Type 4 and Type 9 licenses from the SFC to operate a virtual asset trading platform[62](index=62&type=chunk)[67](index=67&type=chunk) - Expects to allocate more resources to develop asset management business and continue to identify potential investments and business opportunities to broaden revenue streams[62](index=62&type=chunk)[63](index=63&type=chunk)[67](index=67&type=chunk) [**Acknowledgements**](index=15&type=section&id=Acknowledgements) The Board of Directors extends its sincere gratitude to clients, suppliers, and employees for their continued support and contributions to the Group during the reporting period - The Board of Directors sincerely thanks clients, suppliers, and employees for their continued support and contributions to the Group during the period[64](index=64&type=chunk)[68](index=68&type=chunk) [**Management Discussion and Analysis**](index=16&type=section&id=Management%20Discussion%20and%20Analysis) [**Overview**](index=16&type=section&id=Overview) For H1 2025, the Group's revenue was approximately HK$25.2 million, a 46.3% year-on-year increase, with gross profit of approximately HK$7.0 million, slightly lower than the previous period's HK$7.1 million - Revenue was approximately **HK$25.2 million**, an increase of approximately **46.3%** compared to the same period last year[69](index=69&type=chunk)[75](index=75&type=chunk) - Gross profit was approximately **HK$7.0 million**, slightly lower than the **HK$7.1 million** in the previous period[69](index=69&type=chunk)[75](index=75&type=chunk) - The trading of computer-related components, apparel, and beauty products business continued to be a significant revenue contributor, with the financial segment also contributing revenue[70](index=70&type=chunk)[75](index=75&type=chunk) [**Liquidity and Financial Resources**](index=16&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group held approximately HK$14.4 million in cash, HK$278.5 million in current assets, HK$278.7 million in total assets, and HK$219.3 million in shareholders' equity, with the current ratio decreasing from 7.2 to 5.2 Liquidity and Financial Resources Overview | Indicator | June 30, 2025 (HK$ million) | Dec 31, 2024 (HK$ million) | | :--- | :--- | :--- | | Cash on Hand | 14.4 | N/A | | Current Assets | 278.5 | N/A | | Total Assets | 278.7 | N/A | | Shareholders' Equity | 219.3 | N/A | | Current Ratio | 5.2 | 7.2 | - The current ratio decreased from **7.2** as of December 31, 2024, to **5.2** as of June 30, 2025[71](index=71&type=chunk)[76](index=76&type=chunk) - The decrease in the current ratio was primarily due to an increase in trade and other payables[71](index=71&type=chunk)[76](index=76&type=chunk) [**Gearing Ratio**](index=16&type=section&id=Gearing%20Ratio) As of June 30, 2025, the Group's gearing ratio was approximately 2.3%, a significant increase from approximately 0.3%, with operations primarily funded by internally generated cash flows, shareholders' equity, and external bank loans - As of June 30, 2025, the gearing ratio was approximately **2.3%**[72](index=72&type=chunk)[77](index=77&type=chunk) - A significant increase from approximately **0.3%** as of December 31, 2024[72](index=72&type=chunk)[77](index=77&type=chunk) - The Group generally funds its operations through internally generated cash flows, shareholders' equity, and external bank loans and borrowings[72](index=72&type=chunk)[77](index=77&type=chunk) [**Capital Structure**](index=16&type=section&id=Capital%20Structure) As of June 30, 2025, the company's authorized share capital was HK$600 million, divided into 100,000,000,000 shares of HK$0.006 par value each, with no changes to the authorized share capital during the period - As of June 30, 2025, authorized share capital was **HK$600,000,000**, divided into **100,000,000,000** shares of **HK$0.006** par value each[73](index=73&type=chunk)[78](index=78&type=chunk) - There were no changes in authorized share capital during the period[73](index=73&type=chunk)[78](index=78&type=chunk) [**Exchange Rates**](index=16&type=section&id=Exchange%20Rates) During the period, most sales were denominated in USD, while most expenses were in USD, RMB, and HKD; the Group currently has no foreign exchange hedging policy, but management continuously assesses foreign exchange risks - Most sales during the period were denominated in USD, while most of the Group's expenses were denominated in USD, RMB, and HKD[74](index=74&type=chunk)[79](index=79&type=chunk) - The Group currently has no policy to hedge foreign exchange risks[74](index=74&type=chunk)[79](index=79&type=chunk) - The management team continuously assesses foreign exchange risks, aiming to minimize the impact of foreign exchange fluctuations on the Group's business operations[74](index=74&type=chunk)[79](index=79&type=chunk) [**Material Investments**](index=17&type=section&id=Material%20Investments) As of June 30, 2025, the total market value of financial assets at fair value through profit or loss was approximately HK$104.1 million, an increase from HK$81.0 million, with HK$2.3 million in realized gains and HK$20.3 million in unrealized gains recognized - As of June 30, 2025, the total market value of financial assets at fair value through profit or loss was approximately **HK$104.1 million**, an increase from December 31, 2024[80](index=80&type=chunk)[82](index=82&type=chunk) - Realized gains of approximately **HK$2.3 million** were recognized during the period (compared to a loss of **HK$8.8 million** in the same period of 2024)[81](index=81&type=chunk)[82](index=82&type=chunk) - Unrealized gains of approximately **HK$20.3 million** were recognized during the period (compared to a loss of **HK$30.7 million** in the same period of 2024)[81](index=81&type=chunk)[82](index=82&type=chunk) [**Financial Assets at Fair Value Through Profit or Loss**](index=17&type=section&id=Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As of June 30, 2025, the total market value of financial assets at fair value through profit or loss was approximately HK$104.1 million, representing 37.35% of the Group's total assets, with the top six investments accounting for HK$71,079 thousand and contributing HK$19,098 thousand in gains - Total market value of financial assets at fair value through profit or loss was **HK$104,102 thousand**, representing **37.35%** of the Group's total assets[84](index=84&type=chunk) - The top six listed equity securities investments had a combined market value of **HK$71,079 thousand**, representing **25.52%** of the Group's total assets, and contributed **HK$19,098 thousand** in gains[84](index=84&type=chunk) [**Details of Major Investments**](index=17&type=section&id=Details%20of%20Major%20Investments) The Group's major investments include WLS Holding Limited, SEEC Media Group Ltd, China Investment and Finance Group Ltd, Wealth Glory Holdings Ltd, China Environment Energy Investment Ltd, and AMCO United Holding Limited, all passive investments spanning multiple sectors Major Listed Equity Securities Investments (Market Value Exceeding 2.0% of Group's Total Assets) | Share Name | Stock Code | Market Value (HK$ '000) | % of Group's Total Assets | (Loss)/Gain (HK$ '000) | Investment Strategy | Principal Business | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | WLS Holding Limited (滙隆控股有限公司) | 8021 | 6,961 | 2.50% | (3,632) | Passive | Scaffolding and Renovation Services, Money Lending, Securities Brokerage, Asset Management | | SEEC Media Group Ltd (財訊傳媒集團有限公司) | 205 | 12,424 | 4.46% | 7,454 | Passive | Advertising Agency, Book Publishing, Securities Brokerage, Money Lending, E-commerce | | China Investment and Finance Group Ltd (中國投融資集團有限公司) | 1226 | 28,092 | 10.09% | 3,184 | Passive | Securities Trading and Investment Holding | | Wealth Glory Holdings Ltd (富譽控股有限公司) | 8269 | 7,557 | 2.71% | 4,198 | Passive | Natural Resources and Commodity Trading, Brand Development, Securities Investment, Money Lending | | China Environment Energy Investment Ltd (中國環保能源投資有限公司) | 986 | 5,567 | 2.00% | 2,073 | Passive | Jewelry Design, OEM, Marketing and Money Lending | | AMCO United Holding Limited (雋泰控股有限公司) | 630 | 10,478 | 3.76% | 5,821 | Passive | Medical Equipment Manufacturing | - China Investment and Finance Group Ltd's investment had the highest market value, representing **10.09%** of the Group's total assets, and contributed **HK$3,184 thousand** in gains[84](index=84&type=chunk)[88](index=88&type=chunk) - The remaining **23** listed equity securities had a total market value of **HK$33,023 thousand**, representing **11.83%** of the Group's total assets, with none exceeding **2.0%** of the Group's total assets[84](index=84&type=chunk)[98](index=98&type=chunk) [**Material Acquisitions or Disposals**](index=18&type=section&id=Material%20Acquisitions%20or%20Disposals) For the six months ended June 30, 2025, the Group did not undertake any material acquisitions or disposals of subsidiaries and associates - No material acquisitions or disposals of subsidiaries and associates were undertaken during the six months ended June 30, 2025[92](index=92&type=chunk)[96](index=96&type=chunk) [**Employees**](index=18&type=section&id=Employees) The Group's remuneration policy is formulated based on employee performance and market conditions, with the Board having discretion to grant share options to executive directors and employees as incentives - The Group's remuneration policy is formulated based on employee performance and market conditions[93](index=93&type=chunk)[97](index=97&type=chunk) - The Board may, at its discretion, grant share options to executive directors and employees as incentives for their contributions to the Group[93](index=93&type=chunk)[97](index=97&type=chunk) [**Other Information**](index=19&type=section&id=Other%20Information) [**Directors' and Chief Executive's Interests in Shares**](index=19&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20in%20Shares) As of June 30, 2025, no directors or chief executives of the company held any interests or short positions in the shares, underlying shares, or debentures of the company or its associated corporations requiring disclosure - As of June 30, 2025, no directors or chief executives of the company held any disclosable interests or short positions in the shares, underlying shares, or debentures of the company or its associated corporations[99](index=99&type=chunk)[103](index=103&type=chunk) [**Share Options**](index=19&type=section&id=Share%20Options) The 2021 Share Option Scheme was terminated on June 24, 2025, and a new 2025 Share Option Scheme was adopted; as of June 30, 2025, no share options were granted, exercised, cancelled, or lapsed under either scheme - The 2021 Share Option Scheme was terminated on June 24, 2025, and a new 2025 Share Option Scheme was adopted[100](index=100&type=chunk)[104](index=104&type=chunk) - As of June 30, 2025, no share options were granted, exercised, cancelled, or lapsed under either scheme, nor were there any outstanding options[101](index=101&type=chunk)[104](index=104&type=chunk) - As of June 30, 2025, **153,853,656** share options were available for grant under the 2025 Share Option Scheme[101](index=101&type=chunk)[104](index=104&type=chunk) [**Substantial Shareholders' Interests in Shares**](index=20&type=section&id=Substantial%20Shareholders'%20Interests%20in%20Shares) As of June 30, 2025, the Board found no other persons (excluding directors and chief executives) holding disclosable interests or short positions in shares or underlying shares under the SFO, or directly or indirectly holding 5% or more of the nominal value of any class of share capital with voting rights - As of June 30, 2025, no other persons (excluding directors and chief executives of the company) held or were deemed to hold disclosable interests or short positions in shares or underlying shares[106](index=106&type=chunk)[111](index=111&type=chunk) - Nor did any directly or indirectly hold interests of **5%** or more of the nominal value of any class of share capital with voting rights at general meetings of any Group member company under any circumstances[106](index=106&type=chunk)[111](index=111&type=chunk) [**Audit Committee**](index=20&type=section&id=Audit%20Committee) The Audit Committee, established in March 2000 and comprising three independent non-executive directors, serves as a crucial link between the Board and the company's auditors, having reviewed the unaudited financial statements for H1 2025 - The Audit Committee was established in March 2000 and comprises three independent non-executive directors[107](index=107&type=chunk)[112](index=112&type=chunk) - Its responsibility is to provide a crucial link between the Board and the company's auditors[107](index=107&type=chunk)[112](index=112&type=chunk) - The Committee has reviewed the Group's unaudited financial statements for the six months ended June 30, 2025[107](index=107&type=chunk)[112](index=112&type=chunk) [**Corporate Governance**](index=20&type=section&id=Corporate%20Governance) The company is committed to high standards of good corporate governance practices and procedures, emphasizing a quality board, robust internal controls, transparency, independence, and accountability to all shareholders, having complied with Listing Rules Appendix C1 - The company is committed to maintaining high standards of good corporate governance practices and procedures[108](index=108&type=chunk)[113](index=113&type=chunk) - Corporate governance principles emphasize an excellent Board, robust internal controls, transparency, independence, and accountability to all shareholders[108](index=108&type=chunk)[113](index=113&type=chunk) - Throughout the six months ended June 30, 2025, the Group has applied the principles set out in Appendix C1 of the Listing Rules 'Corporate Governance Code'[108](index=108&type=chunk)[113](index=113&type=chunk) [**Events After the Reporting Period**](index=20&type=section&id=Events%20After%20the%20Reporting%20Period) No significant events occurred after the six months ended June 30, 2025, and up to the date of this report - No significant events occurred after the six months ended June 30, 2025, and up to the date of this report[109](index=109&type=chunk)[114](index=114&type=chunk) [**Standard of Conduct Regarding Securities Transactions by Directors**](index=20&type=section&id=Standard%20of%20Conduct%20Regarding%20Securities%20Transactions%20by%20Directors) The company has adopted the 'Standard of Conduct Regarding Securities Transactions by Directors' as set out in Appendix C3 of the Listing Rules as its code of conduct, and all directors confirmed compliance during the reporting period - The company has adopted the Standard Code as its own code of conduct regarding securities transactions by directors[110](index=110&type=chunk)[115](index=115&type=chunk) - Based on specific inquiries made to all directors, the directors complied with the required standards set out in the Standard Code during the six months ended June 30, 2025[110](index=110&type=chunk)[115](index=115&type=chunk) [**Purchase, Sale or Redemption of the Company's Listed Securities**](index=20&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) 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 - 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[111](index=111&type=chunk)[116](index=116&type=chunk)

[Interim Results Overview](index=2&type=section&id=Interim%20Results%20Overview) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group reported a profit before tax of HK$49,540 thousand for the six months ended June 30, 2025, a significant turnaround from a prior-year loss Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30): | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | 91,004 | 96,750 | (5,746) | -5.94% | | Cost of Inventories and Services | (26,566) | (30,261) | 3,695 | -12.21% | | Other Income | 26,354 | 2,737 | 23,617 | +862.88% | | Net Other Gains and Losses | 1,293 | (52,729) | 54,022 | N/A | | Profit/(Loss) Before Tax | 49,540 | (35,114) | 84,654 | N/A | | Profit/(Loss) for the Period | 49,263 | (35,143) | 84,406 | N/A | | Basic and Diluted Earnings/(Loss) Per Share | 21.39 HK cents | (15.26) HK cents | 36.65 HK cents | N/A | [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets less current liabilities increased to HK$363,801 thousand, with net current assets and total equity also rising Condensed Consolidated Statement of Financial Position (As of June 30): | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Non-current Assets | 70,490 | 69,997 | 493 | +0.70% | | Current Assets | 501,259 | 754,717 | (253,458) | -33.58% | | Current Liabilities | 207,948 | 512,763 | (304,815) | -59.44% | | Net Current Assets | 293,311 | 241,954 | 51,357 | +21.23% | | Total Assets Less Current Liabilities | 363,801 | 311,951 | 51,850 | +16.62% | | Total Equity | 300,897 | 249,252 | 51,645 | +20.72% | [Condensed Consolidated Statement of Changes in Equity](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) Total equity attributable to owners of the Company increased to HK$301,271 thousand, driven by profit for the period and exchange differences from translation Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30): | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Equity Attributable to Owners of the Company at January 1 | 249,626 | 428,581 | | Profit/(Loss) for the Period | 49,263 | (35,143) | | Exchange Differences Arising from Translation | 3,052 | (1,035) | | Exchange Differences Realized on Disposal of a Subsidiary | (670) | – | | Total Comprehensive Income/(Expense) for the Period | 51,645 | (36,178) | | Equity Attributable to Owners of the Company at June 30 | 301,271 | 392,403 | [Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) Net cash from operating activities significantly increased, but higher cash usage in financing activities led to a net decrease in cash and cash equivalents Condensed Consolidated Statement of Cash Flows (For the six months ended June 30): | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 267,913 | 105,666 | 162,247 | +153.55% | | Net Cash (Used in)/Generated from Investing Activities | (486) | 519 | (1,005) | N/A | | Net Cash Used in Financing Activities | (279,836) | (100,399) | (179,437) | +178.72% | | Net (Decrease)/Increase in Cash and Cash Equivalents | (12,409) | 5,786 | (18,195) | N/A | | Cash and Cash Equivalents at June 30 | 78,061 | 132,573 | (54,512) | -41.12% | [Notes to the Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [1. Basis of Preparation](index=9&type=section&id=1.%20Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in accordance with HKAS 34 and Appendix D2 of the Listing Rules - Financial statements are prepared in accordance with **Hong Kong Accounting Standard 34** and **Appendix D2 of the Listing Rules**[16](index=16&type=chunk) [2. Significant Accounting Policies](index=9&type=section&id=2.%20Significant%20Accounting%20Policies) New and revised HKFRS standards were adopted with no significant financial impact, and the interim financial statements were reviewed by the audit committee - New and revised Hong Kong Financial Reporting Standards were adopted for the first time, but with no significant impact on interim financial information[17](index=17&type=chunk) - The condensed consolidated interim financial statements are unaudited but have been reviewed by the audit committee[18](index=18&type=chunk) [3. Revenue and Segment Information](index=10&type=section&id=3.%20Revenue%20and%20Segment%20Information) The Group operates in three segments: medical products/plastic toys, securities brokerage/asset management, and lending/other financial services, with lending being the largest revenue contributor - The Group's main operating segments include medical products and plastic toys, securities brokerage and asset management, and lending and other financial services[20](index=20&type=chunk) Revenue by Major Product and Service Categories (For the six months ended June 30): | Revenue Source | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Medical Products | 32,058 | 36,286 | (4,228) | -11.65% | | Plastic Toys | 3,363 | 1,812 | 1,551 | +85.60% | | Fees and Commission Income | 661 | 572 | 89 | +15.56% | | Revenue from Contracts with Customers | 36,082 | 38,670 | (2,588) | -6.69% | | Interest Income from Loans and Finance Lease Receivables | 54,922 | 58,080 | (3,158) | -5.44% | | **Total Revenue** | **91,004** | **96,750** | **(5,746)** | **-5.94%** | Revenue and Results by Segment (For the six months ended June 30): | Segment | 2025 Revenue (HK$ thousand) | 2025 Results (HK$ thousand) | 2024 Revenue (HK$ thousand) | 2024 Results (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Medical Products and Plastic Toys Business | 35,421 | (17,529) | 38,098 | (6,742) | | Securities Brokerage and Asset Management Services | 1,198 | (1,087) | 9,897 | (3,275) | | Lending Business and Other Financial Services | 54,385 | 49,812 | 48,755 | 24,239 | | **Total** | **91,004** | **31,196** | **96,750** | **14,222** | [4. Income Tax Expense](index=13&type=section&id=4.%20Income%20Tax%20Expense) Income tax expense for H1 2025 was HK$277 thousand, mainly from China corporate income tax, with Hong Kong and China having different tax rates Income Tax Expense (For the six months ended June 30): | Tax Source | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Hong Kong | – | 29 | | China Corporate Income Tax | 277 | – | | **Total Income Tax Expense** | **277** | **29** | - Hong Kong profits tax operates under a two-tiered system, with the first **HK$2 million** of assessable profits taxed at **8.25%** and the remainder at **16.5%**[25](index=25&type=chunk). Chinese subsidiaries are subject to a **25%** tax rate[26](index=26&type=chunk) [5. Profit/(Loss) for the Period](index=14&type=section&id=5.%20Profit%2F(Loss)%20for%20the%20Period) Profit for the period was primarily driven by a fair value gain on financial assets and the reversal of bond finance costs Major Items Affecting Profit/(Loss) for the Period (For the six months ended June 30): | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Depreciation of Property, Plant and Equipment | 458 | 574 | | Depreciation of Right-of-use Assets | 359 | 1,004 | | Fair Value Change of Financial Assets at Fair Value Through Profit or Loss | (4,796) (Gain) | 43,230 (Loss) | | Net Impairment Loss Recognized on Financial Assets Measured at Amortized Cost | 6,250 | – | | Bank Interest Income | (1,190) | (725) | | Gain on Disposal of Investment in a Subsidiary | (241) | – | | Finance Costs - Bonds | 3,224 | 13,361 | | Finance Costs - Lease Liabilities | 13 | 35 | [6. Dividends](index=14&type=section&id=6.%20Dividends) The Board does not recommend an interim dividend for the six months ended June 30, 2025, consistent with the prior period - The Board does not recommend an interim dividend for the first half of **2025** (2024: nil)[29](index=29&type=chunk) [7. Earnings/(Loss) Per Share](index=15&type=section&id=7.%20Earnings%2F(Loss)%20Per%20Share) Basic and diluted earnings per share for H1 2025 were HK21.39 cents, a turnaround from a loss in the prior period Earnings/(Loss) Per Share Calculation Data (For the six months ended June 30): | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Profit/(Loss) for the Period Attributable to Owners of the Company (HK$ thousand) | 49,263 | (35,143) | | Weighted Average Number of Ordinary Shares (Number of shares) | 230,322,413 | 230,322,413 | | **Basic and Diluted Earnings/(Loss) Per Share (HK cents)** | **21.39** | **(15.26)** | - As the exercise of share options would decrease earnings per share, the exercise of share options was not assumed in the calculation of diluted earnings per share[30](index=30&type=chunk) [8. Trade and Other Receivables, Prepayments and Loans and Finance Lease Receivables](index=16&type=section&id=8.%20Trade%20and%20Other%20Receivables,%20Prepayments%20and%20Loans%20and%20Finance%20Lease%20Receivables) Total trade and other receivables and prepayments decreased to HK$94,455 thousand, while loans receivable significantly reduced due to increased credit loss provisions Trade and Other Receivables and Prepayments (As of June 30): | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Trade Receivables from Medical Products and Plastic Toys Business (net of provision) | 6,964 | 20,400 | (13,436) | -65.86% | | Trade Receivables from Securities Brokerage Business (net of provision) | 42,651 | 50,405 | (7,754) | -15.38% | | Total Trade Receivables | 49,615 | 70,805 | (21,190) | -29.93% | | Total Trade and Other Receivables and Prepayments | 94,455 | 115,420 | (20,965) | -18.16% | Loans Receivable (As of June 30): | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Total Loans Receivable (gross of provision) | 820,515 | 1,061,360 | (240,845) | -22.69% | | Loss Allowance for Expected Credit Losses | (639,103) | (659,353) | 20,250 | -3.07% | | **Net Loans Receivable** | **181,412** | **402,007** | **(220,595)** | **-54.87%** | - Annual interest rates for loans receivable range from **6% to 18%**, and effective interest rates for factoring loans range from **10% to 15%**[34](index=34&type=chunk)[35](index=35&type=chunk) [9. Financial Assets at Fair Value Through Profit or Loss](index=19&type=section&id=9.%20Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) Financial assets at fair value through profit or loss slightly decreased to HK$129,661 thousand, with a fair value gain recorded for the period Financial Assets at Fair Value Through Profit or Loss (As of June 30): | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Listed Securities Held for Trading | 116,143 | 114,150 | 1,993 | +1.75% | | Unlisted Equity Funds | 8,373 | 13,494 | (5,121) | -37.95% | | Unlisted Debt Securities | 5,145 | 6,540 | (1,395) | -21.33% | | **Total** | **129,661** | **134,184** | **(4,523)** | **-3.37%** | - A fair value change gain of approximately **HK$4,796 thousand** was recorded for the period, compared to a loss of **HK$997 thousand** as of December 31, 2024[36](index=36&type=chunk) - Fair value measurement of listed securities is classified as Level 1, while unlisted equity funds and debt securities are classified as Level 3[37](index=37&type=chunk) [10. Trade and Other Payables and Accrued Charges](index=20&type=section&id=10.%20Trade%20and%20Other%20Payables%20and%20Accrued%20Charges) Total trade and other payables and accrued charges slightly decreased to HK$184,799 thousand as of June 30, 2025 Trade and Other Payables and Accrued Charges (As of June 30): | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Trade Payables from Medical Products and Plastic Toys Business | 16,704 | 10,472 | 6,232 | +59.51% | | Trade Payables from Securities Brokerage Business | 17,751 | 17,058 | 693 | +4.06% | | Total Trade Payables | 34,455 | 27,530 | 6,925 | +25.15% | | Other Payables and Accrued Charges | 150,344 | 162,198 | (11,854) | -7.31% | | **Total** | **184,799** | **189,728** | **(4,929)** | **-2.60%** | [11. Bonds](index=21&type=section&id=11.%20Bonds) Unsecured bonds significantly decreased to HK$63,734 thousand due to redemptions, carrying a fixed annual interest rate of 6% Bonds (As of June 30): | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Bonds, Unsecured | 63,734 | 363,092 | (299,358) | -82.45% | - The bonds are unsecured, with a **fixed interest rate of 6%**, interest paid annually, and a maturity date on the eighth anniversary of the issue date[39](index=39&type=chunk) [12. Share Capital](index=21&type=section&id=12.%20Share%20Capital) Authorized share capital was HK$5,000,000 thousand, and issued share capital remained unchanged at HK$2,304 thousand as of June 30, 2025 Share Capital Information (As of June 30): | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Authorized Share Capital (500,000,000,000 ordinary shares) | 5,000,000 | 5,000,000 | | Issued Share Capital (230,322,413 ordinary shares) | 2,304 | 2,304 | [13. Related Party Disclosures](index=22&type=section&id=13.%20Related%20Party%20Disclosures) Key management personnel remuneration for H1 2025 was HK$1,269 thousand, a slight increase from the prior period Key Management Personnel Remuneration (For the six months ended June 30): | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Short-term Employee Benefits | 1,269 | 1,229 | 40 | +3.25% | [Management Discussion and Analysis](index=23&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=23&type=section&id=Business%20Review) The Group's core businesses include financial services (securities brokerage, margin financing, lending) and manufacturing/distribution of plastic toys and medical products - The Group's core businesses include financial services (**securities brokerage, margin financing, lending**) and the manufacturing and distribution of medical products and plastic toys[43](index=43&type=chunk) [Medical Products and Plastic Toys Business](index=23&type=section&id=Medical%20Products%20and%20Plastic%20Toys%20Business) Medical product sales revenue decreased by 11.7% to HK$32.1 million, while plastic toy sales revenue grew by 85.6% to HK$3.4 million Medical Products and Plastic Toys Business Revenue (For the six months ended June 30): | Business | 2025 (HK$ million) | 2024 (HK$ million) | Change Rate | | :--- | :--- | :--- | :--- | | Medical Product Sales Revenue | 32.1 | 36.3 | -11.7% | | Plastic Toy Sales Revenue | 3.4 | 1.8 | +85.6% | [Securities Brokerage, Margin Financing, Underwriting and Placement, and Asset Management Business](index=23&type=section&id=Securities%20Brokerage,%20Margin%20Financing,%20Underwriting%20and%20Placement,%20and%20Asset%20Management%20Business) Pegasus Securities' revenue significantly decreased to HK$1.2 million, with plans to expand asset management and corporate finance businesses Pegasus Securities Revenue (For the six months ended June 30): | Item | 2025 (HK$ million) | 2024 (HK$ million) | Change Rate | | :--- | :--- | :--- | :--- | | Pegasus Securities Revenue | 1.2 | 9.9 | -87.88% | - The Group plans to expand its **asset management** and **corporate finance** businesses to provide comprehensive financial services[45](index=45&type=chunk) [Lending and Finance Lease](index=23&type=section&id=Lending%20and%20Finance%20Lease) Lending business interest income increased to HK$54.4 million, representing 59.8% of total revenue, and is expected to continue its contribution Lending Business Interest Income (For the six months ended June 30): | Item | 2025 (HK$ million) | 2024 (HK$ million) | Change Rate | | :--- | :--- | :--- | :--- | | Interest Income | 54.4 | 48.8 | +11.47% | - Interest income from the lending business accounts for approximately **59.8%** of the Group's total revenue and is expected to continue contributing revenue[46](index=46&type=chunk) [Prospects](index=24&type=section&id=Prospects) The Group aims to expand its financial services in Hong Kong and China, including lending and securities brokerage, and diversify through new investments - The Group will focus on developing its financial segment in **Hong Kong** and **China**, including **lending, finance lease, and securities brokerage** businesses[47](index=47&type=chunk) - Plans include expanding into **corporate finance, asset management, and financing planning**, and seeking potential investment opportunities for business diversification[47](index=47&type=chunk) - Committed to strengthening corporate governance to create maximum value for shareholders[48](index=48&type=chunk) [Financial Review](index=24&type=section&id=Financial%20Review) H1 2025 consolidated revenue decreased by 5.9% to HK$91.0 million, with a profit of HK$49.5 million driven by fair value gains and bond finance cost reversals Financial Performance Overview (For the six months ended June 30): | Metric | 2025 (HK$ million) | 2024 (HK$ million) | Change Rate | | :--- | :--- | :--- | :--- | | Consolidated Revenue | 91.0 | 96.8 | -5.9% | | Gross Profit Margin | 70.8% | N/A | N/A | | Profit/(Loss) Before Tax | 49.5 | (35.1) | N/A | | Profit/(Loss) Attributable to Owners of the Company | 49.3 | (35.1) | N/A | - The recorded profit is primarily attributable to the change in financial assets at fair value through profit or loss from a loss to a gain (approximately **HK$4.8 million** gain compared to approximately **HK$43.2 million** loss in the prior period), and the reversal of finance costs for redeemed bonds of approximately **HK$23.1 million**[49](index=49&type=chunk) [Liquidity and Financial Resources](index=25&type=section&id=Liquidity%20and%20Financial%20Resources) Cash and cash equivalents decreased to HK$78.1 million, while bonds payable significantly reduced, improving net current assets, current ratio, and gearing ratio Liquidity and Financial Resources (As of June 30): | Metric | 2025 (HK$ million) | 2024 (HK$ million) | Change Rate | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 78.1 | 91.1 | -14.27% | | Bonds Payable | 63.7 | 363.1 | -82.45% | | Net Current Assets | 293.3 | 242.0 | +21.20% | | Current Ratio | 2.4 | 1.5 | +60.00% | | Gearing Ratio | 21.2% | 145.7% | -85.45% | [Material Investments](index=25&type=section&id=Material%20Investments) The Group held no material investments exceeding 5% of total assets as of June 30, 2025 - As of June 30, 2025, the Group did not hold any material investments exceeding **5%** of total assets[51](index=51&type=chunk) [Pledged Assets](index=25&type=section&id=Pledged%20Assets) The Group had no pledged assets as of June 30, 2025 - As of June 30, 2025, the Group had no pledged assets[52](index=52&type=chunk) [Foreign Exchange Risk](index=25&type=section&id=Foreign%20Exchange%20Risk) The Group faces foreign exchange risk from multiple currencies, especially RMB appreciation, with ongoing risk assessment but no hedging policy - The Group faces foreign exchange risk from multiple currencies, particularly affected by **RMB appreciation**[53](index=53&type=chunk) - Management continuously assesses foreign exchange risk but currently has no hedging policy[53](index=53&type=chunk) [Equity Price Risk](index=26&type=section&id=Equity%20Price%20Risk) The Group faces equity price risk from listed securities investments, managed by monitoring market changes and considering mitigation measures - The Group faces **equity price risk** from listed securities investments, which management monitors through market changes[54](index=54&type=chunk) [Contingent Liabilities](index=26&type=section&id=Contingent%20Liabilities) The Company had no material contingent liabilities as of June 30, 2025 - As of June 30, 2025, the Company had no material contingent liabilities[55](index=55&type=chunk) [Employees and Remuneration Policy](index=26&type=section&id=Employees%20and%20Remuneration%20Policy) The Group employed 141 staff (132 in China) as of June 30, 2025, with remuneration including salaries, bonuses, benefits, and training - The Group employed a total of **141 staff**, with **132** located in China[56](index=56&type=chunk) - Employee remuneration includes **basic salaries, discretionary bonuses, retirement benefits, and share options**, with training provided[56](index=56&type=chunk) [Interim Dividend](index=26&type=section&id=Interim%20Dividend) The Board does not recommend an interim dividend for the six months ended June 30, 2025 - The Board does not recommend an interim dividend for the first half of **2025**[57](index=57&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=26&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities in H1 2025 - In the first half of **2025**, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[58](index=58&type=chunk) [Share Option Scheme](index=27&type=section&id=Share%20Option%20Scheme) No share options were granted, exercised, lapsed, or cancelled under the 2022 Share Option Scheme in H1 2025, with 23,032,241 options available for grant - In the first half of **2025**, no share options were granted, exercised, lapsed, or cancelled under the **2022 Share Option Scheme**[59](index=59&type=chunk) - As of June 30, 2025, the number of share options available for grant under the Share Option Scheme was **23,032,241**[59](index=59&type=chunk) [Future Plans for Material Investments or Capital Assets](index=27&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) The Group had no specific future plans for material investments or capital assets as of June 30, 2025 - As of June 30, 2025, the Group had no specific future plans for material investments or capital assets[60](index=60&type=chunk) [Material Acquisitions and Disposals](index=27&type=section&id=Material%20Acquisitions%20and%20Disposals) The Group had no material acquisitions or disposals for the six months ended June 30, 2025 - In the first half of **2025**, the Group had no material acquisitions or disposals[61](index=61&type=chunk) [Events After Reporting Period](index=27&type=section&id=Events%20After%20Reporting%20Period) No material events occurred after the reporting period up to the date of this report - No material events occurred after the reporting period up to the date of this report[62](index=62&type=chunk) [Shareholder and Corporate Governance Information](index=28&type=section&id=Shareholder%20and%20Corporate%20Governance%20Information) [Directors' Interests in Shares and Related Shares](index=28&type=section&id=Directors'%20Interests%20in%20Shares%20and%20Related%20Shares) No directors, supervisors, or chief executives held disclosable interests or short positions in the Company's shares or debentures as of June 30, 2025 - As of June 30, 2025, no directors, supervisors, or chief executives held disclosable company shares or related interests[63](index=63&type=chunk) [Major Shareholders](index=28&type=section&id=Major%20Shareholders) Opus Platinum Growth Fund held 7.82% of issued share capital, with Mr. Lai Shu Fan deemed to have the same interest due to indirect ownership Major Shareholders' Shareholdings (As of June 30): | Name of Shareholder | Nature of Interest | Number of Ordinary Shares | Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Opus Platinum Growth Fund | Beneficial Owner | 18,000,000 | 7.82% | | Mr. Lai Shu Fan | Interest in Controlled Corporation | 18,000,000 | 7.82% | - Mr. Lai Shu Fan indirectly owns approximately **40.03%** interest in Opus Platinum Growth Fund and is therefore deemed to have an interest in the shares held by the fund[65](index=65&type=chunk) [Corporate Governance Code](index=29&type=section&id=Corporate%20Governance%20Code) The Board believes the Company complied with the Corporate Governance Code in Appendix C1 of the Listing Rules for H1 2025 - The Board believes the Company fully complied with the Corporate Governance Code in **Appendix C1** of the Listing Rules for the first half of **2025**[67](index=67&type=chunk) [Audit Committee](index=29&type=section&id=Audit%20Committee) The Audit Committee, composed of three independent non-executive directors, reviewed accounting principles, internal controls, and the interim financial statements - The Audit Committee, comprising **three independent non-executive directors**, has reviewed accounting principles, internal controls, and these interim financial statements[68](index=68&type=chunk) [Compliance with Model Code](index=29&type=section&id=Compliance%20with%20Model%20Code) The Company adopted a directors' securities transaction code, with all directors confirming full compliance in H1 2025 - The Company has adopted a model code for directors' securities transactions, and all directors confirmed full compliance in the first half of **2025**[69](index=69&type=chunk)

2025 中期報告 目錄 | 公司資料 | 2 | | --- | --- | | 財務概要 | 3 | | 管理層討論及分析 | 4 | | 權益披露 | 8 | | 企業管治及其他資料 | 10 | | 簡明綜合損益及其他全面收入表 | 13 | | 簡明綜合財務狀況表 | 15 | | 簡明綜合現金流量表 | 17 | | 簡明綜合權益變動表 | 19 | 簡明綜合財務報表附註 21 偉業控股有限公司 公司資料 執行董事 陳志勇先生 獨立非執行董事 劉寧先生 董心誠先生 陳詩敏女士 審核委員會 陳詩敏女士 （主席） 董心誠先生 劉寧先生 提名委員會 董心誠先生 （主席） 陳詩敏女士 劉寧先生 薪酬委員會 劉寧先生 （主席） 董心誠先生 陳詩敏女士 公司秘書 陳雪莉女士(ACS, ACG) 文潤華先生(ACG, HKACG) 位於中國的總部及主要營業地點 中國河南省 鄭州市鄭東新區 鄭開大道 楊橋路交叉口 偉業國際廣場 A座19樓 位於香港的主要營業地點 香港 上環干諾道中111號 永安中心16樓1601室 註冊辦事處 10 Bukit Batok Crescent #06-05 The Spire Si ...

目 錄 公 司 資 料 2 財 務 摘 要 3 財 務 業 績 簡 明 綜 合 損 益 及 其 他 全 面 收 益 表 4 簡 明 綜 合 財 務 狀 況 表 6 簡 明 綜 合 權 益 變 動 表 8 簡 明 綜 合 現 金 流 量 表 10 簡 明 綜 合 財 務 報 表 附 註 11 管 理 層 討 論 及 分 析 24 其 他 資 料 28 公司資料 執行董事 林偉華（主席） 黃邦俊 張榮祥 非執行董事 宋貝貝 戴成雲（於二零二五年六月十七日辭任） 林寶珍 獨立非執行董事 鍾錦光 香啟誠 張偉賢 公司秘書 鍾錦光先生（主席） 香啟誠先生 張偉賢先生 薪酬委員會 鍾錦光先生（主席） 黃邦俊先生 香啟誠先生 張偉賢先生 提名委員會 鍾錦光先生（主席） 黃邦俊先生 香啟誠先生 張偉賢先生 林寶珍(於二零二五年六月十七日獲委任) 核數師 德勤 • 關黃陳方會計師行 註冊公眾利益實體核數師 香港 金鐘道88號 太古廣場一座35樓 註冊辦事處 P.O. Box 309, Ugland House Grand Cayman, KY1-1104 Cayman Islands 劉範儒 審核委員會 主要辦事處 香港 新界 ...

[Company Information](index=3&type=section&id=Company%20Information) [Board of Directors and Committees](index=3&type=section&id=Board%20of%20Directors%20and%20Committees) The company's board comprises executive, non-executive, and independent non-executive directors, with audit, remuneration, nomination, and ESG committees ensuring sound corporate governance - Board members include Executive Directors Leng Youbin (Chairman & CEO), Liu Hua, Cai Fangliang, Tu Fang'er; Non-executive Directors Gao Yu, Chen Guojin, Zhang Guohua, Maher EL-OMARI; and Independent Non-executive Directors Liu Jinping, Song Jianwu, Fan Yonghong, Jacques Maurice LAFORGE[3](index=3&type=chunk) - Fan Yonghong chairs the Audit Committee, Liu Jinping chairs the Remuneration Committee, Leng Youbin chairs the Nomination Committee, and Liu Hua chairs the Environmental, Social and Governance Committee[3](index=3&type=chunk) [Key Contact Information](index=3&type=section&id=Key%20Contact%20Information) Tu Fang'er serves as Company Secretary, Ernst & Young is the auditor, with headquarters in Beijing, Hong Kong office in Causeway Bay, and investor relations contact details provided - Ms. Tu Fang'er is the Company Secretary, and Ernst & Young is the auditor[3](index=3&type=chunk) - The company's headquarters and principal place of business in China are located at 16th Floor, Block C, Xingcheng International Building, No. 10 Jiuxianqiao Road, Chaoyang District, Beijing, China[4](index=4&type=chunk) - Investor relations contact email is ir@feihe.com, company website is www.feihe.com, and stock code is 6186[4](index=4&type=chunk) [Financial Highlights](index=4&type=section&id=Financial%20Highlights) [Key Financial Data](index=4&type=section&id=Key%20Financial%20Data) For the six months ended June 30, 2025, revenue decreased by 9.4% to RMB 9,150.5 million, gross profit fell by 17.8%, profit for the period dropped significantly by 46.0% to RMB 1,032.5 million, and basic earnings per share were RMB 0.11 For the Six Months Ended June 30 Key Financial Data (RMB Thousand) | Indicator | 2025 (Unaudited) | 2024 (Unaudited) | Change Percentage | | :--- | :--- | :--- | :--- | | Revenue | 9,150,525 | 10,094,947 | (9.4)% | | Gross Profit | 5,634,862 | 6,852,455 | (17.8)% | | Profit for the Period | 1,032,538 | 1,911,451 | (46.0)% | | Earnings Per Share Attributable to Owners of the Parent – Basic | 0.11 | 0.21 | (47.6)% | | Earnings Per Share Attributable to Owners of the Parent – Diluted | 0.11 | 0.21 | (47.6)% | [Management Discussion and Analysis](index=5&type=section&id=Management%20Discussion%20and%20Analysis) [Industry Overview](index=5&type=section&id=Industry%20Overview) China's infant formula market faces declining birth rates but is supported by rising consumer confidence, premium segment growth, urbanization, and government pro-natalist policies - China's birth rate declined from **10.48‰** in 2019 to **6.77‰** in 2024, with newborns decreasing to approximately **9.5 million** people and children aged zero to three falling from **47.1 million** to **28.1 million**[8](index=8&type=chunk) - Market growth drivers include increased consumer confidence in domestic infant formula quality, growth in the premium infant formula segment (**6.1% CAGR** in per capita disposable income), and rising urbanization levels and disposable income[8](index=8&type=chunk) - The Chinese government has introduced several favorable policies, including the "Action Plan for Enhancing Domestic Infant Formula" (targeting **60%** self-sufficiency), stricter national food safety standards, the three-child policy with supporting measures (e.g., birth subsidies, childcare services, free preschool education), and tightened formula registration regulations[8](index=8&type=chunk)[9](index=9&type=chunk)[12](index=12&type=chunk) [Business Overview](index=7&type=section&id=Business%20Overview) The Group's core business is internally developed infant formula, complemented by a diverse dairy product portfolio, sold through extensive offline and e-commerce channels, with continuous capacity enhancement and strategic marketing - The Group's infant formula products aim to mimic breast milk composition, offering a diverse portfolio including ultra-premium, premium, and regular infant formula series, as well as adult and student dairy products[11](index=11&type=chunk) - As of June 30, 2025, the Group sold products through over **2,700** offline customers (covering approximately **70,000** retail sales points) nationwide, with offline sales accounting for **71.9%** of total dairy product revenue; also sold on major e-commerce platforms and proprietary websites[13](index=13&type=chunk)[14](index=14&type=chunk) - The Group operates **11** production facilities with a combined designed annual capacity exceeding **440,000 tons**, and has established a cream production line. Marketing strategies include face-to-face seminars (approximately **384,030** sessions held, acquiring over **274,000** new customers), online interactions, and media coverage[15](index=15&type=chunk)[16](index=16&type=chunk)[17](index=17&type=chunk) - Vitamin World USA operates **42** specialty stores in the United States and sells vitamins, minerals, and other nutritional supplements through its website and e-commerce platforms, contributing **RMB 91.0 million** in revenue for the six months ended June 30, 2025, accounting for **1.0%** of the Group's total revenue[16](index=16&type=chunk) [Operating Results and Analysis](index=9&type=section&id=Operating%20Results%20and%20Analysis) For the six months ended June 30, 2025, the Group experienced significant declines in revenue, gross profit, and profit for the period, driven by reduced infant formula channel inventory, birth subsidies, increased cost of sales, and changes in other income and expenses For the Six Months Ended June 30 Operating Results (RMB Thousand) | Indicator | 2025 | 2024 | Change Percentage | | :--- | :--- | :--- | :--- | | Revenue | 9,150,525 | 10,094,947 | (9.4)% | | Cost of Sales | (3,515,663) | (3,242,492) | 8.4% | | Gross Profit | 5,634,862 | 6,852,455 | (17.8)% | | Gross Margin | 61.6% | 67.9% | (6.3)pp | | Other Income and Net Gains | 540,082 | 862,259 | (37.4)% | | Selling and Distribution Expenses | (3,174,706) | (3,535,374) | (10.2)% | | Administrative Expenses | (773,735) | (738,708) | 4.7% | | Other Expenses | (20,606) | (41,311) | (50.1)% | | Finance Costs | (16,360) | (26,236) | (37.6)% | | Profit Before Tax | 1,758,631 | 3,029,435 | (41.9)% | | Income Tax Expense | (726,093) | (1,117,984) | (35.1)% | | Profit for the Period | 1,032,538 | 1,911,451 | (46.0)% | - Revenue decrease was primarily due to the implementation of the "Fresh Active Nutrition" strategy, reducing infant formula channel inventory, and the company's active fulfillment of social responsibility by providing birth subsidies to consumers[20](index=20&type=chunk) - Increase in cost of sales was mainly due to higher production costs for raw milk powder (whole milk powder, skim milk powder, and cream) sold during the reporting period[21](index=21&type=chunk) - Gross margin decline was primarily due to an increased proportion of raw milk powder sales revenue in total revenue[23](index=23&type=chunk) - Decrease in other income and net gains was mainly due to reduced government grants and interest income[24](index=24&type=chunk) - Decrease in selling and distribution expenses was mainly due to reduced advertising and promotion expenses, offline activity costs, and promotional item expenses[25](index=25&type=chunk) - Decrease in finance costs was mainly due to a reduction in interest-bearing borrowings[29](index=29&type=chunk) [Liquidity and Capital Resources](index=11&type=section&id=Liquidity%20and%20Capital%20Resources) The Group primarily funds operations through operating cash flows, interest-bearing bank borrowings, and net proceeds from global offerings, with cash and cash equivalents of RMB 6,476.6 million and improved asset-liability ratio as of June 30, 2025 - The Group primarily funds its operations through operating cash flows, interest-bearing bank borrowings, and net proceeds from its global offering, and achieves lower risk, good liquidity, and higher returns by purchasing wealth management products[34](index=34&type=chunk) Liquidity and Capital Structure (RMB Thousand) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and Cash Equivalents | 6,476,600 | 9,321,222 | | Interest-bearing Bank Borrowings | 782,100 | 999,858 | | Net Assets | 27,153,300 | 27,407,385 | | Gearing Ratio | (0.22) | (0.32) | [Interest Rate Risk and Exchange Rate Risk](index=12&type=section&id=Interest%20Rate%20Risk%20and%20Exchange%20Rate%20Risk) The Group is exposed to interest rate risk from interest-bearing financial assets and liabilities, and transactional currency risk from Canadian overseas plant operations, without using derivative instruments for hedging - The Group is exposed to interest rate risk arising from changes in interest rates on interest-bearing financial assets and liabilities, and did not use derivative instruments for hedging during the six months ended June 30, 2025[39](index=39&type=chunk) - The Group is exposed to transactional currency risk, primarily related to its overseas plant operations in Canada denominated in Canadian Dollars, currently without a foreign currency hedging policy, but will closely monitor and consider hedging significant foreign currency risks[39](index=39&type=chunk) [Material Acquisitions and Disposals](index=12&type=section&id=Material%20Acquisitions%20and%20Disposals) For the six months ended June 30, 2025, the Group did not undertake any material acquisitions or disposals of subsidiaries or associates - For the six months ended June 30, 2025, the Group did not undertake any material acquisitions or disposals of subsidiaries or associates[40](index=40&type=chunk) [Pledged Assets](index=12&type=section&id=Pledged%20Assets) As of June 30, 2025, the Group's total pledged assets amounted to approximately RMB 941.8 million, a decrease of RMB 245.9 million from the beginning of the year - As of June 30, 2025, the Group's total pledged assets amounted to approximately **RMB 941.8 million**, a decrease of **RMB 245.9 million** from the beginning of 2025[41](index=41&type=chunk) [Future Plans for Material Investments or Capital Assets](index=13&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) Beyond the expansion plans disclosed in the prospectus, the Group currently has no other specific plans for material investments or acquisitions of significant capital assets but will continue to seek new business development opportunities - Except for the expansion plans disclosed in the "Business" and "Future Plans and Use of Proceeds" sections of the prospectus, the Group has no specific plans for material investments or acquisitions of significant capital assets or other businesses[42](index=42&type=chunk) - The Group will continue to seek new opportunities for business development[42](index=42&type=chunk) [Contingent Liabilities](index=13&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[43](index=43&type=chunk) [Events After the Reporting Period](index=13&type=section&id=Events%20After%20the%20Reporting%20Period) As of the date of this interim report, the Group had no significant events after June 30, 2025 - As of the date of this interim report, the Group had no significant events after June 30, 2025[44](index=44&type=chunk) [Future Outlook](index=13&type=section&id=Future%20Outlook) The company will continue to focus on its core business, promote independent innovation, optimize product formulations and production processes, build high-quality dairy products, and uphold social responsibility to contribute to China's dairy industry development and public health - The company will, as always, focus on its core business, vigorously promote independent innovation, continuously optimize product formulations and production processes, and comprehensively build high-quality dairy products, contributing core strength to China's dairy industry moving towards a "dairy powerhouse"[45](index=45&type=chunk) - The company will consistently uphold its original mission, using nutrition as a bridge to safeguard public health and well-being, striving for a smarter, healthier, and longer life for humanity[45](index=45&type=chunk) - The company will continue to fulfill its responsibilities as a private enterprise, adhering to serving the nation and benefiting the people, leading China's dairy industry into a new stage of high-quality development, and contributing more Feihe strength to the Healthy China strategy[45](index=45&type=chunk) [Other Information and Corporate Governance](index=14&type=section&id=Other%20Information%20and%20Corporate%20Governance) [Compliance with Corporate Governance Code](index=14&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company adopted and largely complied with the Corporate Governance Code during the reporting period, noting the combined roles of Chairman and CEO are deemed beneficial for effective business decision-making and strategy implementation - The company has adopted the Corporate Governance Code set out in Appendix C1 of the Listing Rules and complied with the applicable code provisions during the reporting period, except that the roles of Chairman and Chief Executive Officer are not separated, both held by Mr. Leng Youbin[46](index=46&type=chunk)[47](index=47&type=chunk) - The Board believes that Mr. Leng Youbin's extensive experience and leadership are beneficial for the effective planning and implementation of business decisions and strategies[47](index=47&type=chunk) [Compliance with Model Code for Securities Transactions by Directors and Employees](index=14&type=section&id=Compliance%20with%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors%20and%20Employees) The company's directors confirmed compliance with the Model Code for securities transactions during the reporting period, and a similar code of conduct was established for relevant employees - The company has adopted the Model Code set out in Appendix C3 of the Listing Rules as the code of conduct for directors' dealings in the company's securities, and all directors confirmed compliance during the reporting period[48](index=48&type=chunk)[49](index=49&type=chunk) - The Board has also established a "Code of Conduct for Securities Transactions by Relevant Employees" with terms no less stringent than the Model Code, to regulate transactions by relevant employees who may possess inside information[50](index=50&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares, and Debentures of the Company or its Associated Corporations](index=15&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%2C%20and%20Debentures%20of%20the%20Company%20or%20its%20Associated%20Corporations) As of June 30, 2025, the company's directors and chief executive held long positions in the company's shares, primarily through controlled corporations or as founders of discretionary trusts, with no short positions Directors'/Chief Executive's Interests in Company Shares/Underlying Shares (Long Positions) | Director/Chief Executive Name | Nature of Interest | Capacity | Number of Shares/Underlying Shares | Approximate Percentage of Company's Shareholding | | :--- | :--- | :--- | :--- | :--- | | Leng Youbin | Corporate Interest | Interest in Controlled Corporation | 587,516,458 | 6.48% | | Leng Youbin | Other Interest | Founder of Discretionary Trust | 3,889,911,881 | 42.90% | | Liu Hua | Other Interest | Founder of Discretionary Trust | 345,681,920 | 3.81% | | Zhang Guohua | Beneficial Interest | Beneficial Owner | 326,000 | 0.00% | | Cai Fangliang | Corporate Interest | Interest in Controlled Corporation | 101,647,734 | 1.12% | | Tu Fang'er | Other Interest | Founder of Discretionary Trust | 23,717,804 | 0.26% | | Tu Fang'er | Beneficial Interest | Beneficial Owner | 104,762 | 0.00% | | Gao Yu | Beneficial Interest | Beneficial Owner | 7,536,151 | 0.08% | | Chen Guojin | Beneficial Interest | Beneficial Owner | 3,368,918 | 0.04% | - Mr. Cai Fangliang holds a **7.66%** beneficial interest in Jilin Green Energy Ecological Animal Husbandry Co., Ltd., an associated corporation[54](index=54&type=chunk) - As of June 30, 2025, none of the company's directors or chief executive held any short positions in the shares or debentures of the company or its associated corporations[55](index=55&type=chunk) [Major Shareholders' Interests](index=18&type=section&id=Major%20Shareholders'%20Interests) As of June 30, 2025, excluding directors and chief executive, Harneys Trustees Limited was the largest shareholder with 49.21% of shares, with other major shareholders including LYB International Holding Limited, Garland Glory Holdings Limited, Mr. Liu Shenghui, and Dasheng Co., Ltd Major Shareholders' Interests in Company Shares (Long Positions) | Shareholder Name/Designation | Nature of Interest | Number of Shares/Underlying Shares | Percentage of Company's Shareholding | | :--- | :--- | :--- | :--- | | Harneys Trustees Limited | Trustee of Trust | 4,461,740,357 | 49.21% | | LYB International Holding Limited | Interest in Controlled Corporation | 3,889,911,881 | 42.90% | | Garland Glory Holdings Limited | Beneficial Owner | 3,889,911,881 | 42.90% | | Mr. Liu Shenghui | Interest in Controlled Corporation and Founder of Discretionary Trust | 813,663,014 | 8.97% | | Dasheng Co., Ltd. | Beneficial Owner | 587,516,458 | 6.48% | - Harneys Trustees Limited is deemed to have interests in shares held by various family trusts, including the Leng Family Trust, Liu Hua Family Trust, and Liu Family Trust[57](index=57&type=chunk) - As of June 30, 2025, no other person held any disclosable interests or short positions in the company's shares or underlying shares[59](index=59&type=chunk) [Employees and Remuneration](index=19&type=section&id=Employees%20and%20Remuneration) As of June 30, 2025, the Group had 9,024 full-time employees, mostly in China, and is committed to providing a quality work environment, diverse training, attractive compensation, and performance-based incentives - As of June 30, 2025, the Group had **9,024** full-time employees, with the majority located in China[60](index=60&type=chunk) - The Remuneration Committee is responsible for reviewing remuneration policies; the company provides a quality work environment, diverse training programs (including induction training, quality control, production safety, etc.), and performance-based compensation (bonuses, honorary awards, promotions, share options)[61](index=61&type=chunk) - The Group takes measures to promote employment equality among employees, oppose discrimination, and foster employee diversity[61](index=61&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=19&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) During the reporting period, neither the company nor any member of the Group purchased, sold, or redeemed any of the company's listed securities, and no treasury shares were held at period-end - During the reporting period, neither the company nor any member of the Group purchased, sold, or redeemed any of the company's listed securities[63](index=63&type=chunk) - At the end of the reporting period, the company did not hold any treasury shares[63](index=63&type=chunk) [Use of Net Proceeds from Global Offering](index=19&type=section&id=Use%20of%20Net%20Proceeds%20from%20Global%20Offering) The company raised approximately HKD 6,554.7 million net proceeds from its 2019 global offering. As of June 30, 2025, HKD 1,409.8 million remained unutilized, expected to be fully used by December 31, 2025, with some delays due to changes in China's macroeconomic and infant formula market environment - The company raised net proceeds of approximately **HKD 6,554.7 million** from its global offering in 2019[64](index=64&type=chunk) Use of Net Proceeds from Global Offering (HKD Million) | Intended Use of Proceeds | Initial Planned Allocation | Unutilized Amount as of December 31, 2024 | Amount Used for the Six Months Ended June 30, 2025 | Unutilized Amount as of June 30, 2025 | Expected Timeline for Using Remaining Proceeds | | :--- | :--- | :--- | :--- | :--- | :--- | | Repayment of Offshore Debts | 2,621.9 | 208.3 | – | 208.3 | Before December 31, 2025 | | Potential M&A Opportunities | 1,310.9 | – | – | – | – | | Operations of the Company's Kingston Plant | 655.5 | 471.7 | 78.3 | 393.4 | Before December 31, 2025 | | R&D Activities for Overseas Infant Formula and Nutritional Supplements | 655.5 | 655.5 | – | 655.5 | Before December 31, 2025 | | Business Expansion of Vitamin World USA | 327.7 | – | – | – | – | | Marketing Efforts | 327.7 | 152.1 | – | 152.1 | Before December 31, 2025 | | Working Capital and General Corporate Purposes | 655.5 | 0.5 | – | 0.5 | Before December 31, 2025 | | **Total** | **6,554.7** | **1,488.1** | **78.3** | **1,409.8** | | - A portion of the net proceeds was delayed by two years compared to the original schedule, mainly due to changes in China's macroeconomic environment and the market environment of the infant formula industry[67](index=67&type=chunk) [Interim Dividend and Closure of Register of Members](index=20&type=section&id=Interim%20Dividend%20and%20Closure%20of%20Register%20of%20Members) The Board recommended an interim dividend of HKD 0.1209 per share for the six months ended June 30, 2025, totaling approximately RMB 1 billion, with the register of members to be closed from September 12 to September 15, 2025, to determine dividend eligibility - The Board resolved to recommend an interim dividend of **HKD 0.1209** per share for the six months ended June 30, 2025 (totaling approximately **HKD 1,096,327,741**, equivalent to approximately **RMB 1,000,000,000**)[68](index=68&type=chunk) - The interim dividend was determined based on the dividend policy of not less than **30%** of the net profit for each financial year, plus approximately **70%** of the profit for the six months ended June 30, 2025 (totaling approximately **100%**)[68](index=68&type=chunk) - To determine shareholders' eligibility for the interim dividend, the company will close its register of members from September 12, 2025, to September 15, 2025 (both dates inclusive)[70](index=70&type=chunk) [Audit Committee](index=21&type=section&id=Audit%20Committee) The Audit Committee, comprising three members and chaired by Mr. Fan Yonghong, is responsible for reviewing the company's accounting principles, audit, risk management, internal controls, and financial reporting matters, including the financial information in this interim report - The Audit Committee comprises Mr. Fan Yonghong (Chairman), Mr. Gao Yu, and Mr. Jacques Maurice LAFORGE[72](index=72&type=chunk) - The Audit Committee has reviewed the accounting principles and practices adopted by the company with management and external auditors, and discussed audit, risk management, internal controls, whistle-blowing policy and system, and financial reporting matters, including this interim report[72](index=72&type=chunk) [Pre-IPO Share Option Scheme](index=21&type=section&id=Pre-IPO%20Share%20Option%20Scheme) The company adopted the Pre-IPO Share Option Scheme on October 14, 2019, to attract and retain talent. The scheme's maximum share number was 190,190,704 shares, fully exercised by September 29, 2022, with no outstanding options at period-end - The Pre-IPO Share Option Scheme was adopted on October 14, 2019, to replace the DIF Share Option Scheme, to recruit and retain outstanding talent, provide additional incentives, and promote the Group's business development[73](index=73&type=chunk)[74](index=74&type=chunk) - The maximum number of shares that may be granted as Pre-IPO Awards and issued under the scheme is **190,190,704** shares, representing approximately **2.10%** of the company's total issued shares[76](index=76&type=chunk) - All Pre-IPO Share Options (**190,190,704** shares) were granted to Dasheng Co., Ltd. on October 14, 2019, and fully exercised on September 29, 2022. At the beginning and end of the reporting period, there were no outstanding Pre-IPO Share Options[83](index=83&type=chunk)[84](index=84&type=chunk) [2020 Share Option Scheme](index=23&type=section&id=2020%20Share%20Option%20Scheme) The company adopted the 2020 Share Option Scheme on June 22, 2020, to attract and retain skilled personnel and incentivize directors, key employees, and other stakeholders. The scheme allows for a maximum of 134,000,100 shares to be granted, with no outstanding options at period-end, but 80,696,300 options remain available for grant - The 2020 Share Option Scheme was adopted on June 22, 2020, to attract and retain skilled and experienced personnel, provide additional incentives to directors, key employees, and other stakeholders, and promote the successful development of the company's business[86](index=86&type=chunk)[87](index=87&type=chunk) - The maximum number of shares that may be granted as awards and issued under the scheme is **134,000,100** shares, representing **1.48%** of the company's total issued shares. The individual limit for each eligible participant in any 12-month period is **1%** of the issued shares[89](index=89&type=chunk)[91](index=91&type=chunk) - The subscription price shall not be less than the highest of the closing price on the Stock Exchange on the date of grant, the average closing price for the five business days immediately preceding the date of grant, and the nominal value of the shares[97](index=97&type=chunk)[99](index=99&type=chunk) - At the beginning and end of the reporting period, no share options granted under the 2020 Share Option Scheme were outstanding. At the end of the reporting period, **80,696,300** share options remained available for grant, representing approximately **0.89%** of the total issued shares[100](index=100&type=chunk) [2023 Share Award Scheme](index=26&type=section&id=2023%20Share%20Award%20Scheme) The company adopted the 2023 Share Award Scheme on May 25, 2023, to recognize and reward eligible participants' contributions and attract talent, with a maximum grant limit and vesting conditions. For the six months ended June 30, 2025, 956,021 share awards were granted to employees, of which 413,074 vested - The 2023 Share Award Scheme was adopted on May 25, 2023, to recognize and reward the contributions of eligible participants to the growth and development of the Group, provide incentives to retain them, and attract suitable talent for the Group's further development[102](index=102&type=chunk)[103](index=103&type=chunk) - Eligible participants include employee participants, associated entity participants, and service providers. The scheme is valid for **10 years** from May 25, 2023[104](index=104&type=chunk)[107](index=107&type=chunk) - The maximum grant limit is **10%** of the company's issued share capital (**906,825,170** shares), with a sub-limit of **0.5%** (**45,341,258** shares) for service providers. Share awards to directors, chief executives, or major shareholders require approval from the Remuneration Committee and independent non-executive directors, and shareholder approval for exceeding specific limits[109](index=109&type=chunk)[110](index=110&type=chunk) 2023 Share Award Scheme Changes (Number of Shares) | Selected Participant | Outstanding as of January 1, 2025 | Granted for the Six Months Ended June 30, 2025 | Forfeited or Cancelled for the Six Months Ended June 30, 2025 | Vested for the Six Months Ended June 30, 2025 | Outstanding as of June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | Employees | 956,021 | – | 64,936 | 413,074 | 478,010 | [Changes in Directors' Information](index=30&type=section&id=Changes%20in%20Directors'%20Information) There were no changes in directors' information requiring disclosure under Listing Rule 13.51B(1) during the reporting period and up to the latest practicable date - Except for those disclosed in the company's 2024 annual report, there were no changes in information requiring disclosure under Listing Rule 13.51B(1) during the reporting period and up to the latest practicable date[121](index=121&type=chunk) [Independent Review Report](index=31&type=section&id=Independent%20Review%20Report) [Review Conclusion](index=31&type=section&id=Review%20Conclusion) Ernst & Young reviewed China Feihe Limited's interim financial information for the six months ended June 30, 2025, finding no matters suggesting non-compliance with IAS 34 in all material respects - Ernst & Young has reviewed the interim financial information contained on pages 31 to 59, including the condensed consolidated statement of financial position, statement of profit or loss, statement of comprehensive income, statement of changes in equity, and statement of cash flows[124](index=124&type=chunk) - The scope of a review is substantially less than that of an audit, and therefore no audit opinion is expressed. Based on the review, nothing has come to our attention that causes us to believe that the interim financial information is not prepared, in all material respects, in accordance with International Accounting Standard 34[126](index=126&type=chunk)[127](index=127&type=chunk) [Condensed Consolidated Statement of Profit or Loss](index=32&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) [Profit or Loss Statement Overview](index=32&type=section&id=Profit%20or%20Loss%20Statement%20Overview) For the six months ended June 30, 2025, the Group's revenue was RMB 9,150,525 thousand, and profit for the period was RMB 1,032,538 thousand, both showing a decrease compared to the same period last year Condensed Consolidated Statement of Profit or Loss (RMB Thousand) | Indicator | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Revenue | 9,150,525 | 10,094,947 | | Cost of Sales | (3,515,663) | (3,242,492) | | Gross Profit | 5,634,862 | 6,852,455 | | Other Income and Net Gains | 540,082 | 862,259 | | Selling and Distribution Expenses | (3,174,706) | (3,535,374) | | Administrative Expenses | (773,735) | (738,708) | | Other Expenses | (20,606) | (41,311) | | Finance Costs | (16,360) | (26,236) | | Share of Loss of Associates | (7,473) | (6,739) | | Changes in Fair Value Less Costs to Sell of Biological Assets | (423,433) | (336,911) | | Profit Before Tax | 1,758,631 | 3,029,435 | | Income Tax Expense | (726,093) | (1,117,984) | | Profit for the Period | 1,032,538 | 1,911,451 | | Basic Earnings Per Share Attributable to Owners of the Parent (RMB) | 0.11 | 0.21 | | Diluted Earnings Per Share Attributable to Owners of the Parent (RMB) | 0.11 | 0.21 | [Condensed Consolidated Statement of Comprehensive Income](index=33&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) [Comprehensive Income Overview](index=33&type=section&id=Comprehensive%20Income%20Overview) For the six months ended June 30, 2025, the Group's profit for the period was RMB 1,032,538 thousand, which, combined with exchange differences on translating financial statements of group companies of RMB 25,518 thousand, resulted in total comprehensive income of RMB 1,058,056 thousand Condensed Consolidated Statement of Comprehensive Income (RMB Thousand) | Indicator | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Profit for the Period | 1,032,538 | 1,911,451 | | Other Comprehensive Income/(Loss) that May Be Reclassified to Profit or Loss in Subsequent Periods: | | | | Exchange Differences on Translating Financial Statements of Group Companies | 25,518 | (24,752) | | Total Comprehensive Income for the Period | 1,058,056 | 1,886,699 | | Attributable to: | | | | Owners of the Parent | 1,026,212 | 1,849,752 | | Non-controlling Interests | 31,844 | 36,947 | [Condensed Consolidated Statement of Financial Position](index=34&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) [Assets, Liabilities and Equity Overview](index=34&type=section&id=Assets%2C%20Liabilities%20and%20Equity%20Overview) As of June 30, 2025, the Group's total assets were RMB 33,902,693 thousand, with net current assets of RMB 15,119,792 thousand. Net assets amounted to RMB 27,153,285 thousand, and equity attributable to owners of the parent was RMB 25,610,542 thousand Condensed Consolidated Statement of Financial Position (RMB Thousand) | Indicator | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 9,430,196 | 9,496,701 | | Biological Assets | 2,236,840 | 2,339,650 | | Total Non-current Assets | 13,471,152 | 13,477,115 | | **Current Assets** | | | | Inventories | 2,050,919 | 2,153,945 | | Structured Deposits | 10,386,931 | 9,681,736 | | Cash and Cash Equivalents | 6,476,567 | 9,321,222 | | Total Current Assets | 20,431,541 | 22,248,591 | | **Current Liabilities** | | | | Trade and Bills Payables | 1,436,344 | 1,565,160 | | Interest-bearing Bank Borrowings | 316,384 | 514,804 | | Total Current Liabilities | 5,311,749 | 6,591,030 | | Net Current Assets | 15,119,792 | 15,657,561 | | **Non-current Liabilities** | | | | Total Non-current Liabilities | 1,437,659 | 1,727,291 | | **Net Assets** | 27,153,285 | 27,407,385 | | **Total Equity** | 27,153,285 | 27,407,385 | [Condensed Consolidated Statement of Changes in Equity](index=36&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) [Equity Changes Overview](index=36&type=section&id=Equity%20Changes%20Overview) For the six months ended June 30, 2025, the Group's total equity changed from RMB 27,407,385 thousand at the beginning of the period to RMB 27,153,285 thousand at period-end, primarily influenced by profit for the period, exchange differences, and declared dividends Condensed Consolidated Statement of Changes in Equity (RMB Thousand) | Indicator | As of January 1, 2025 | Profit for the Period | Exchange Differences | Dividends Declared | Share-based Payment Arrangements | Additions to Non-controlling Interests | As of June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Equity Attributable to Owners of the Parent | 25,933,186 | 1,000,105 | 26,107 | (1,350,316) | 1,460 | – | 25,610,542 | | Non-controlling Interests | 1,474,199 | 32,433 | (589) | – | – | 36,700 | 1,542,743 | | **Total Equity** | **27,407,385** | **1,032,538** | **25,518** | **(1,350,316)** | **1,460** | **36,700** | **27,153,285** | [Condensed Consolidated Statement of Cash Flows](index=37&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) [Cash Flow Overview](index=37&type=section&id=Cash%20Flow%20Overview) For the six months ended June 30, 2025, the Group's net cash flow from operating activities was RMB 77,421 thousand, net cash used in investing activities was RMB 85,188 thousand, and net cash used in financing activities was RMB 1,599,211 thousand, resulting in a net decrease in cash and cash equivalents of RMB 1,606,978 thousand Condensed Consolidated Statement of Cash Flows (RMB Thousand) | Indicator | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 77,421 | 1,567,971 | | Net Cash Flow Used in Investing Activities | (85,188) | (363,866) | | Net Cash Flow Used in Financing Activities | (1,599,211) | (1,407,849) | | Net Decrease in Cash and Cash Equivalents | (1,606,978) | (203,744) | | Cash and Cash Equivalents at Beginning of Period | 7,214,612 | 7,447,381 | | Net Effect of Exchange Rate Changes | 11,601 | (33,397) | | Cash and Cash Equivalents at End of Period | 5,619,235 | 7,210,240 | [Notes to the Condensed Consolidated Financial Information](index=39&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Information) [Basis of Preparation](index=39&type=section&id=Basis%20of%20Preparation) This condensed consolidated interim financial information is prepared in accordance with IAS 34 and applicable disclosure requirements of the HKEX Listing Rules, and should be read in conjunction with the annual consolidated financial statements - The condensed consolidated interim financial information has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[138](index=138&type=chunk) - This information does not include all the information and disclosures required in the annual consolidated financial statements, and should be read in conjunction with the Group's annual consolidated financial statements for the year ended December 31, 2024[139](index=139&type=chunk) [Changes in Accounting Policies and Disclosures](index=39&type=section&id=Changes%20in%20Accounting%20Policies%20and%20Disclosures) The accounting policies adopted for this interim financial information are consistent with the prior year, except for the initial adoption of amended IAS 21 "Lack of Exchangeability," which had no impact as all currencies traded by the Group are convertible - The accounting policies adopted in the preparation of the condensed consolidated interim financial information are consistent with those applied in the preparation of the Group's annual consolidated financial statements for the year ended December 31, 2024, except for the initial adoption of IAS 21 (Amendments) "Lack of Exchangeability"[140](index=140&type=chunk) - As the currencies in which the Group trades and the functional currencies of the Group entities used for conversion into the Group's reporting currency are all convertible, these amendments had no impact on the condensed consolidated interim financial information[140](index=140&type=chunk) [Operating Segment Information](index=40&type=section&id=Operating%20Segment%20Information) The Group has two reportable operating segments: raw milk and dairy & nutritional supplement products, with management independently monitoring their performance. For the six months ended June 30, 2025, the dairy & nutritional supplement products segment generated RMB 9,142,719 thousand in revenue, accounting for the vast majority of total revenue, with mainland China contributing most external customer revenue and non-current assets - The Group has two reportable operating segments: the raw milk segment (production and sale of raw milk) and the dairy and nutritional supplement products segment (production and sale of dairy products and sale of nutritional supplements)[141](index=141&type=chunk)[145](index=145&type=chunk) Segment Revenue (RMB Thousand) | Segment | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Raw Milk (Sales to External Customers) | 7,806 | 38,685 | | Dairy and Nutritional Supplement Products (Sales to External Customers) | 9,142,719 | 10,056,262 | | **Total Revenue** | **9,150,525** | **10,094,947** | Geographical Information: Revenue from External Customers (RMB Thousand) | Region | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Mainland China | 9,041,300 | 9,987,364 | | United States of America | 91,012 | 81,305 | | Canada | 18,213 | 26,278 | | **Total** | **9,150,525** | **10,094,947** | Geographical Information: Non-current Assets (RMB Thousand) | Region | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Mainland China | 10,803,989 | 10,940,287 | | United States of America | 33,533 | 38,365 | | Canada | 1,539,681 | 1,548,706 | | **Total** | **12,377,203** | **12,527,358** | [Revenue, Other Income and Net Gains](index=44&type=section&id=Revenue%2C%20Other%20Income%20and%20Net%20Gains) For the six months ended June 30, 2025, the Group's revenue from contracts with customers was RMB 9,150,525 thousand, primarily from goods sold in mainland China. Other income and net gains were RMB 540,082 thousand, a decrease from the prior year, mainly due to reduced bank interest income and government grants Revenue from Contracts with Customers (RMB Thousand) | Type of Goods/Geographical Market/Timing of Revenue Recognition | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Sale of Goods | 9,150,525 | 10,094,947 | | Mainland China | 9,041,300 | 9,987,364 | | Goods Transferred at a Point in Time | 9,150,525 | 10,094,947 | Other Income and Net Gains (RMB Thousand) | Item | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Bank Interest Income | 74,307 | 138,364 | | Other Interest Income | 88,287 | 40,708 | | Government Grants (Asset-related) | 24,960 | 35,126 | | Government Grants (Income-related) | 299,248 | 401,255 | | Fair Value Gain on Structured Deposits | 50,195 | 139,955 | | **Total Other Income and Net Gains** | **540,082** | **862,259** | - Decrease in other income and net gains was mainly due to reduced government grants and bank interest income[152](index=152&type=chunk) [Profit Before Tax](index=46&type=section&id=Profit%20Before%20Tax) For the six months ended June 30, 2025, the Group's profit before tax was RMB 1,758,631 thousand, primarily affected by cost of sales, depreciation, and fair value loss on biological assets Profit Before Tax Adjustment Items (RMB Thousand) | Item | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Cost of Sales | 3,515,663 | 3,242,492 | | Depreciation of Property, Plant and Equipment | 332,932 | 298,677 | | Depreciation of Right-of-Use Assets | 11,031 | 12,775 | | Depreciation of Investment Properties | 6,407 | 8,195 | | Write-down of Inventories to Net Realizable Value | 20,878 | 15,740 | | Changes in Fair Value Less Costs to Sell of Biological Assets | 423,433 | 336,911 | | Loss on Disposal of Property, Plant and Equipment Items | 2,047 | 2,082 | [Finance Costs](index=46&type=section&id=Finance%20Costs) For the six months ended June 30, 2025, the Group's finance costs were RMB 16,360 thousand, mainly from bank loan interest, a decrease from the prior year Finance Costs Analysis (RMB Thousand) | Item | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Interest on Bank Loans | 15,003 | 26,907 | | Interest on Lease Liabilities | 1,357 | 1,968 | | **Total** | **16,360** | **26,236** | [Income Tax](index=47&type=section&id=Income%20Tax) For the six months ended June 30, 2025, the Group's income tax expense was RMB 726,093 thousand, with an effective tax rate of 41.3%. Taxable profits in mainland China are subject to a 25% rate, while some agricultural subsidiaries are exempt from corporate income tax - Income tax on taxable profits in mainland China is calculated at the applicable corporate income tax rate of **25%**. Certain subsidiaries of the Group engaged in agricultural businesses are exempt from corporate income tax[156](index=156&type=chunk)[157](index=157&type=chunk) Income Tax Expense Analysis (RMB Thousand) | Item | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Current – China | 727,607 | 969,775 | | Withholding Tax | 300,000 | 553,700 | | Deferred | (301,514) | (411,359) | | **Total Tax Expense for the Period** | **726,093** | **1,117,984** | - The Group's effective tax rate for the six months ended June 30, 2025, was **41.3%** (2024: **36.9%**)[32](index=32&type=chunk) [Dividends](index=47&type=section&id=Dividends) The company declared a final dividend of HKD 0.1632 per ordinary share for 2024 (totaling approximately RMB 1.35 billion) and an interim dividend of HKD 0.1209 per share for the first half of 2025 (totaling approximately RMB 1 billion) after the reporting period - For the six months ended June 30, 2025, the company declared a final dividend of **HKD 0.1632** per ordinary share for the year ended December 31, 2024, totaling approximately **RMB 1.35 billion** to its shareholders[159](index=159&type=chunk) - Subsequent to the end of the reporting period, the Board declared an interim dividend of **HKD 0.1209** per share for the six months ended June 30, 2025, totaling approximately **RMB 1.0 billion**[159](index=159&type=chunk) [Earnings Per Share Attributable to Owners of the Parent](index=48&type=section&id=Earnings%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Parent) For the six months ended June 30, 2025, both basic and diluted earnings per share attributable to owners of the parent were RMB 0.11, a decrease from RMB 0.21 in the prior year Earnings Per Share Calculation (RMB Thousand and Number of Shares) | Indicator | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Profit for the Period Attributable to Owners of the Parent | 1,000,105 | 1,875,011 | | Weighted Average Number of Ordinary Shares Outstanding for Basic EPS Calculation | 9,054,820,598 | 9,048,107,529 | | Dilutive Effect – Weighted Average Number of Ordinary Shares: Share Awards | 1,264,937 | – | | **Weighted Average Number of Shares for Diluted EPS Calculation** | **9,056,085,535** | **9,048,107,529** | - Both basic and diluted earnings per share are calculated based on the profit for the period attributable to owners of the parent and the weighted average number of ordinary shares outstanding, adjusted to reflect treasury shares[160](index=160&type=chunk) [Property, Plant and Equipment](index=49&type=section&id=Property%2C%20Plant%20and%20Equipment) For the six months ended June 30, 2025, the Group acquired property, plant and equipment items totaling RMB 316,433 thousand, and disposed of assets resulting in a loss of RMB 2,047 thousand. At period-end, approximately RMB 25,037 thousand of plant and machinery and construction in progress were pledged - For the six months ended June 30, 2025, the Group acquired property, plant and equipment items totaling **RMB 316,433 thousand**[163](index=163&type=chunk) - The Group disposed of assets with a net book value of **RMB 44,188 thousand**, resulting in a loss on disposal of **RMB 2,047 thousand**[163](index=163&type=chunk) - As of June 30, 2025, certain plant and machinery and construction in progress with a total net book value of approximately **RMB 25,037 thousand** were pledged as collateral for third-party and bank borrowings[164](index=164&type=chunk) [Biological Assets](index=50&type=section&id=Biological%20Assets) The Group primarily holds dairy cows for milk production, with a total of 108,439 cows as of June 30, 2025. Biological assets had a fair value of RMB 2,236,840 thousand, with a fair value change less costs to sell loss of RMB 423,433 thousand during the period. Some biological assets are pledged for bank borrowings - The dairy cows owned by the Group are primarily held for production of milk, including heifers and calves, and mature cows[165](index=165&type=chunk) Number of Dairy Cows (Head) | Dairy Cow Category | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Mature Cows | 51,452 | 49,330 | | Heifers and Calves | 56,987 | 57,966 | | **Total Dairy Cows** | **108,439** | **107,296** | Changes in Value of Dairy Cows (RMB Thousand) | Item | Heifers and Calves | Lactating Cows | Total | | :--- | :--- | :--- | :--- | | Balance as of January 1, 2025 | 993,920 | 1,345,730 | 2,339,650 | | Increase due to Breeding (Feeding Costs and Others) | 397,463 | – | 397,463 | | Transfers (Out)/In | (374,705) | 374,705 | – | | Decrease due to Sales | (13,790) | (63,050) | (76,840) | | Loss from Changes in Fair Value Less Costs to Sell | (72,768) | (350,665) | (423,433) | | **Balance as of June 30, 2025** | **930,120** | **1,306,720** | **2,236,840** | - As of June 30, 2025, biological assets amounting to **RMB 916,799 thousand** were pledged as collateral for interest-bearing bank borrowings[170](index=170&type=chunk) [Inventories](index=52&type=section&id=Inventories) As of June 30, 2025, the Group's total inventories amounted to RMB 2,050,919 thousand, primarily comprising work-in-progress, finished goods, feed, and raw materials Inventory Composition (RMB Thousand) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Feed | 425,015 | 649,498 | | Raw Materials | 81,765 | 67,265 | | Work-in-Progress | 960,891 | 1,009,150 | | Finished Goods | 548,980 | 404,585 | | Other | 34,268 | 23,447 | | **Total** | **2,050,919** | **2,153,945** | [Trade and Bills Receivables](index=53&type=section&id=Trade%20and%20Bills%20Receivables) As of June 30, 2025, the Group's total trade and bills receivables were RMB 334,915 thousand. The Group provides credit terms to customers and maintains strict control over receivables, with no significant concentration of credit risk Trade and Bills Receivables (RMB Thousand) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Trade Receivables | 329,085 | 382,041 | | Bills Receivables | 17,886 | 25,234 | | Impairment | (12,056) | (12,056) | | **Total** | **334,915** | **395,219** | - The Group grants specific credit terms to customers, typically ranging from one to three months from the invoice date. Trade and bills receivables are non-interest bearing[173](index=173&type=chunk) Ageing Analysis of Trade and Bills Receivables (RMB Thousand) | Ageing | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Within One Month | 255,317 | 308,529 | | One to Two Months | 24,507 | 41,518 | | Two to Three Months | 17,275 | 20,016 | | Over Three Months | 37,816 | 25,156 | | **Total** | **334,915** | **395,219** | [Trade and Bills Payables](index=54&type=section&id=Trade%20and%20Bills%20Payables) As of June 30, 2025, the Group's total trade and bills payables were RMB 1,436,344 thousand, mostly settled within three months, and are unsecured and non-interest bearing Ageing Analysis of Trade and Bills Payables (RMB Thousand) | Ageing | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Within Three Months | 1,315,235 | 1,428,376 | | Three to Six Months | 101,783 | 65,890 | | Over Six Months | 19,326 | 70,894 | | **Total** | **1,436,344** | **1,565,160** | - Trade and bills payables are unsecured, non-interest bearing, and typically settled within one to six months[175](index=175&type=chunk) [Other Payables and Accrued Expenses](index=55&type=section&id=Other%20Payables%20and%20Accrued%20Expenses) As of June 30, 2025, the Group's total other payables and accrued expenses were RMB 4,033,501 thousand, with a current portion of RMB 3,314,879 thousand, mainly including deferred revenue, other payables, accrued expenses, and contract liabilities Other Payables and Accrued Expenses Composition (RMB Thousand) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Deferred Revenue | 729,859 | 716,743 | | Other Payables | 925,228 | 1,404,668 | | Accrued Expenses | 1,629,429 | 2,125,442 | | Contract Liabilities | 748,985 | 559,799 | | **Total** | **4,033,501** | **4,806,652** | | Non-current Portion | (718,622) | (705,608) | | Current Portion | 3,314,879 | 4,101,044 | [Share Capital](index=55&type=section&id=Share%20Capital) As of June 30, 2025, the company's authorized share capital was 2,000,000,000,000 ordinary shares of USD 0.000000025 each, with 9,067,251,704 shares issued and fully paid - The company's authorized share capital is **2,000,000,000,000** ordinary shares of **USD 0.000000025** each[177](index=177&type=chunk) - The issued and fully paid share capital consists of **9,067,251,704** ordinary shares of **USD 0.000000025** each[177](index=177&type=chunk) - Each fully paid ordinary share carries one vote and the right to receive dividends when declared by the company[177](index=177&type=chunk) [Commitments](index=56&type=section&id=Commitments) As of June 30, 2025, the Group's capital commitments primarily related to the construction and purchase of property, plant and equipment items, amounting to RMB 447,455 thousand Capital Commitments (RMB Thousand) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Construction and Purchase of Property, Plant and Equipment Items | 447,455 | 337,225 | [Related Party Transactions](index=56&type=section&id=Related%20Party%20Transactions) The Group during the period engaged in transactions with related parties, including purchasing goods from companies controlled by the controlling shareholder, and had bank loan guarantees provided by a subsidiary's vice president and director. Total key management personnel compensation was RMB 19,242 thousand Transactions with Companies Controlled by Controlling Shareholder (RMB Thousand) | Item | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Sale of Raw Milk | – | 7,607 | | Purchase of Goods | 8,975 | 9,709 | - Bank loan facilities up to **RMB 831,000 thousand** were guaranteed by a subsidiary's vice president and his spouse, of which **RMB 256,655 thousand** remained unutilized[180](index=180&type=chunk) - Bank loan facilities up to **RMB 340,000 thousand** were guaranteed by a subsidiary's director and his spouse, of which **RMB 105,052 thousand** remained unutilized[180](index=180&type=chunk) Key Management Personnel Compensation (RMB Thousand) | Item | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Short-term Employee Benefits | 19,103 | 21,781 | | Post-employment Benefits | 139 | 132 | | **Total Key Management Personnel Compensation Paid/Payable** | **19,242** | **21,913** | [Fair Value and Fair Value Hierarchy of Financial Instruments](index=57&type=section&id=Fair%20Value%20and%20Fair%20Value%20Hierarchy%20of%20Financial%20Instruments) The fair values of the Group's financial instruments are similar to their carrying amounts. Structured deposits and interest-bearing bank borrowings are primarily fair valued using discounted cash flow analysis and classified as Level 2. Financial assets at fair value through other comprehensive income are classified as Level 3 - The fair values of financial instruments such as cash and cash equivalents, restricted cash, trade and bills receivables, and trade and bills payables are similar to their carrying amounts, mainly due to their short-term maturity[183](index=183&type=chunk) - The fair value of structured deposits is determined based on discounted cash flow analysis and classified as Level 2 fair value measurement[185](index=185&type=chunk)[186](index=186&type=chunk) - The fair value of the non-current portion of interest-bearing bank borrowings is calculated by discounting expected future cash flows using current interest rates for instruments with similar terms, credit risk, and remaining maturity, and classified as Level 2 fair value measurement[184](index=184&type=chunk)[188](index=188&type=chunk) - Financial assets at fair value through other comprehensive income (**RMB 1,800 thousand**) are classified as Level 3 fair value measurement, estimated using the market approach, with unobservable inputs being the price-to-book ratios of comparable companies[186](index=186&type=chunk)[187](index=187&type=chunk) [Approval of the Condensed Consolidated Interim Financial Statements](index=60&type=section&id=Approval%20of%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) These unaudited condensed consolidated interim financial statements were approved and authorized for issue by the Board of Directors on August 28, 2025 - These unaudited condensed consolidated interim financial statements were approved and authorized for issue by the Board of Directors on August 28, 2025[189](index=189&type=chunk) [Definitions](index=61&type=section&id=Definitions) [Definitions of Key Terms](index=61&type=section&id=Definitions%20of%20Key%20Terms) This section provides definitions for key terms used in the report, covering corporate governance, financial, legal, and business-related jargon, ensuring consistent understanding for readers - Provides definitions for key terms such as "Audit Committee", "Awarded Shares", "Board", "Corporate Governance Code", "China", "Company", "Directors", "Group", "HKD", "Hong Kong", "IFRS", "Listing Rules", "RMB", "Reporting Period", "Share Award", "Shareholder", "Stock Exchange", "Subsidiary", "Trustee", "US", "USD", "Vitamin World USA", and "Original Ecological"[190](index=190&type=chunk)[191](index=191&type=chunk)[193](index=193&type=chunk)[194](index=194&type=chunk)[196](index=196&type=chunk)

目錄 | 公司資料 | 2 | | --- | --- | | 簡明綜合財務報表審閱報告 | 3 | | 簡明綜合損益及其他全面收益表 | 4 | | 簡明綜合財務狀況報表 | 6 | | 簡明綜合權益變動表 | 8 | | 簡明綜合現金流量表 | 10 | | 簡明綜合財務報表附註 | 11 | | 業務回顧 | 33 | | 其他資料 | 67 | 公司資料 截至二零二五年八月八日 富智康集團有限公司（「本公司」，連同其附屬公司，統稱「本集團」） （「我們」及「我們的」指「本公司」或「本公司的」（視情況而定）。） 執行董事 池育陽 （主席） 林佳億 （行政總裁） 郭文義 非執行董事 張傳旺 P.O. Box 31119 Grand Pavilion Hibiscus Way 802 West Bay Road Grand Cayman, KY1-1205 Cayman Islands 總辦事處 台灣 23679新北市 土城區 沛陂里民生街4號 香港主要營業地點 香港 九龍 長沙灣 青山道538號 半島大廈8樓 核數師 德勤 • 關黃陳方會計師行 註冊公眾利益實體核數師 獨立非執行董事 劉紹基 陳淑娟 邱彥 ...

關於我們 特步國際控股有限公司（香港聯交所股份代號：1368）為一家領先的多品 牌體育用品公司，於2008年在香港聯合交易所主板上市。集團主要從事 成人和兒童體育用品（包括鞋履、服裝和配飾）的設計、研發、製造、銷 售、營銷及品牌管理。憑藉多元化的品牌組合，包括特步主品牌、索康尼 及邁樂，集團通過涵蓋超過8,000家門店的龐大分銷網絡，戰略性地瞄準 大眾運動和專業運動分部。 目 錄 | 2 | 中期業績概覽 | | --- | --- | | 3 | 企業戰略 | | 4 | 五年財務摘要 | | 5 | 公司資料 | | 6 | 主席報告書 | | 8 | 管理層討論與分析 | | 34 | 企業管治及其他資料 | | 41 | 獨立審閱報告 | | 42 | 中期簡明綜合收益表 | | 44 | 中期簡明綜合全面收益表 | | 45 | 中期簡明綜合財務狀況表 | | 47 | 中期簡明綜合權益變動表 | | 49 | 中期簡明綜合現金流量表 | | 50 | 中期簡明綜合財務資料附註 | | 78 | 投資者資訊 | | 79 | 詞彙 | 主席報告書 2 特步國際控股有限公司 中期業績概覽 人民幣 6, ...

M&L HOLDINGS GROUP LIMITED 明樑控股集團有限公司 於開曼群島註冊成立的有限公司 股份代號：8152 2025 INTERIM REPORT 中期報告 香港聯合交易所有限公司（「聯交所」）GEM之特色 GEM乃為較其他在聯交所上市的公司帶有更高投資風險的中小型公司提供上市的市 場。有意投資者應了解投資於該等公司的潛在風險，並應經過審慎周詳的考慮後方 作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於主板買賣之證 券承受更大的市場波動風險，同時無法保證在GEM買賣的證券會有高流通量的市場。 Incorporated in the Cayman Islands with limited liability Stock Code: 8152 M&L HOLDINGS GROUP LIMITED 明樑控股集團有限公司 中期報告 INTERIM REPORT 香港交易及結算所有限公司及聯交所對本報告之內容概不負責，對其準確性或完整 性亦不發表任何聲明，並明確表示概不會對因本報告全部或任何部分內容而產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 本報告乃遵照《聯 ...

關於我們 深圳投控灣區發展有限公司（「本公司」，前稱合和公路基 建有限公司）於開曼群島註冊成立之有限公司，自2003 年8月6日起在香港聯合交易所有限公司上市，股份代號 737（港幣櫃檯）及80737（人民幣櫃檯）。本公司主要經 營高速公路業務，發展策略聚焦於粵港澳大灣區內的基 礎設施建設和相關聯業務以及廣深高速公路沿線土地開 發利用。深圳高速公路集團股份有限公司（於香港聯合交 易所有限公司上市之公司（股份代號：548）及上海證券 交易所上市之公司（股份代號：600548））於2022年1月 11日成為本公司的控股股東。 目 錄 2 管理層討論及分析 2 業務回顧 17 財務回顧 28 中期股息及暫停辦理股份過戶登記手續 29 其他資料 35 中期財務報告之審閱報告 37 綜合損益表 38 綜合損益及其他全面收益表 39 綜合財務狀況表 41 綜合權益變動表 43 簡明綜合現金流量表 44 未經審核中期財務報告附註 61 五年財務摘要 66 詞彙 71 公司資料 72 財務日誌 管理層討論及分析 業務回顧 業務總體表現 回顧期內，廣深高速公路、廣珠西綫高速公路及沿江高速公路（深圳段）的營運表現各異，主 要是受 ...

Economic Performance - In the first half of 2025, China's GDP reached RMB 66,053.6 billion, reflecting a year-on-year increase of 5.3% at constant prices[11] - GDP growth was 5.4% in Q1 and 5.2% in Q2 2025 compared to the same periods in the previous year[11] - On a quarter-on-quarter basis, GDP grew by 1.1% in Q2 2025[11] - The contributions to GDP from final consumption expenditure, gross capital formation, and net exports were 52%, 16.8%, and 31.2% respectively[11] - The overall economic environment remains complex and volatile, with increased demand for stability and new growth momentum[11] Industry and Business Development - The added value of the primary industry was RMB 3,117.2 billion, up 3.7%; the secondary industry increased to RMB 23,905 billion, up 5.3%; and the tertiary industry reached RMB 39,031.4 billion, up 5.5%[11] - The Group has transformed into a credit-centered, industry-based, and finance-driven comprehensive service platform to support SMEs in overcoming growth challenges[17] - The financing guarantee business involves providing guarantees for SMEs and individual business proprietors, highlighting the Group's role in supporting the financial ecosystem[20] - The Group aims to empower enterprises for high-quality economic development through precise matching and efficient response services[12] - The Group's operations are guided by the dual principles of "stability" and "transformation" to ensure long-term sustainable development[18] Financial Performance - The Group's profit for the period increased by approximately RMB 1.47 million, or approximately 5.91%, to approximately RMB 26.36 million for the six months ended 30 June 2025 from approximately RMB 24.89 million for the corresponding period in 2024[73] - The Group's net profit margin increased to approximately 18.63% for the six months ended 30 June 2025 from approximately 14.04% for the corresponding period in 2024[73] - The Group's net guarantee fee income decreased by approximately RMB30.88 million, or approximately 26.41%, from approximately RMB116.92 million for the six months ended 30 June 2024 to approximately RMB86.04 million for the six months ended 30 June 2025[51][53] - The Group's net interest income for the six months ended June 30, 2025, was approximately RMB 44.56 million, representing a decrease of about 5.43% compared to RMB 47.12 million for the same period in 2024[32] - The Group's total revenue for the six months ended June 30, 2025, was RMB 141,456,000, down 20.2% from RMB 177,208,000 in 2024[198] Risk Management - The Company conducts regular post-transaction supervision based on project risk profiles, with monitoring frequency ranging from every half month to every six months[36] - Risk assessment is performed periodically, focusing on high-risk industries and projects with abnormal counter-guarantee conditions, implementing stricter standards[37] - The Company classifies customer risk profiles into five categories: "normal," "special-attention," "substandard," "suspicious," and "loss," adjusting supervision levels accordingly[39] - The Group has implemented internal control policies to manage business risks, including post-transaction inspection procedures to identify potential repayment difficulties[33] - The Company enforces rights to collateral when business prospects deteriorate or when customers show no intention to repay, negotiating the disposal of collateral to recover losses[41] SME Support and Financing - The Group aims to build a comprehensive financial service system to support SMEs, stimulate innovation, and contribute to sustainable economic development[101] - The balance of inclusive small and micro-enterprise loans reached RMB 35.57 trillion, marking a 12.3% year-on-year increase and outpacing the growth of various loans by 5.2 percentage points[89] - The National Financial Regulatory Administration and the People's Bank of China issued measures to improve financing conditions for SMEs, proposing 23 work measures to enhance financing supply and reduce costs[87] - The implementation of inclusive finance policies has led to a rapid growth in small and micro-enterprise loans, with an increase of RMB 2.63 trillion in the first half of 2025[89] - The Chinese government emphasized the importance of SMEs in stabilizing the economy and improving livelihoods, continuously enriching policy tools to address financing challenges[86] Corporate Governance - The company complied with the Corporate Governance Code, except for the deviation regarding the roles of Chairman and President being held by the same individual[177] - All directors and supervisors confirmed full compliance with the Model Code during the six months ended June 30, 2025[180] - The company will continue to review and enhance its corporate governance practices[179] - The audit committee reviewed the unaudited consolidated interim financial statements for the six months ended June 30, 2025[175] - There were no interests in competing businesses by directors or controlling shareholders during the reporting period[181] Capital and Investments - The Group's cash and bank deposits amounted to approximately RMB 899.78 million, an increase from RMB 887.15 million as of December 31, 2024[112] - The Group has issued Corporate Bonds with a nominal value of RMB 500.00 million, with coupon rates of 3.4% and 3.5% for different tranches[113] - The Group's investments in the financial industry are subject to stringent regulatory measures, leading to delays in the approval process for certain business expansions[140] - The expected time of utilization of the remaining proceeds has been revised due to the uncertain development of the regulatory regime in the PRC financial industry[141] - The Group's liquidity and capital requirements are primarily related to capital investments, micro-lending, and maintaining security deposits at banks[111]