Financial Performance - Total revenue for the year ended December 31, 2025, was HKD 395,740,000, representing a 20.4% increase from HKD 328,578,000 in 2024[5] - Gross profit increased to HKD 117,538,000, up 24.5% from HKD 94,409,000 in the previous year[5] - Operating profit rose to HKD 41,671,000, a 40.7% increase compared to HKD 29,604,000 in 2024[5] - Net profit attributable to shareholders was HKD 31,186,000, reflecting a 20.5% increase from HKD 25,804,000 in 2024[5] - Basic and diluted earnings per share increased to HKD 15.7, up from HKD 13.0 in the previous year[5] - The group’s total equity increased by 5.8% to approximately HKD 456.51 million from HKD 431.65 million in 2024[46] - The net profit for the fiscal year 2025 was HKD 31.19 million, up from HKD 25.80 million in 2024, with earnings per share rising to HKD 0.157 from HKD 0.130[44] - The group maintained a net profit margin of 7.9% in 2025, consistent with the previous year[54] Assets and Liabilities - Total assets as of December 31, 2025, were HKD 541,911,000, an increase from HKD 495,982,000 in 2024[7] - Total equity increased to HKD 456,508,000 from HKD 431,650,000 in 2024[7] - The total value of investment properties as of December 31, 2025, was HKD 73,468,000, down from HKD 83,391,000 in 2024, indicating a decrease of approximately 11.9%[32] - Trade receivables net amount for 2025 was HKD 83,846,000, compared to HKD 79,425,000 in 2024, showing an increase of approximately 5.7%[35] - The total trade payables for 2025 were HKD 19,704,000, a decrease from HKD 20,999,000 in 2024, reflecting a decline of about 6.2%[37] Cash Flow - Cash and cash equivalents at year-end were HKD 105,484,000, significantly up from HKD 52,765,000 in 2024[11] - The company reported a net cash inflow from operating activities of HKD 53,447,000, compared to HKD 21,656,000 in the previous year[11] - The group recorded a net cash inflow of HKD 52.8 million in 2025, reflecting significant effectiveness of profit enhancement and working capital strategies implemented by the board[55] Revenue Segmentation - Revenue from the Americas segment was HKD 311,392,000, accounting for 78.7% of total revenue, up from HKD 236,405,000 in 2024[19] - The company reported a significant increase in customer revenue, with Customer A generating HKD 187,083,000 and Customer B generating HKD 81,826,000 in 2025[21] - The top five customers accounted for approximately 85% of total revenue in 2025, up from 82% in 2024, indicating a high dependency on a limited number of customers[57] Expenses and Costs - The cost of goods sold for the year was HKD 200,987,000, compared to HKD 152,670,000 in 2024, indicating a rise of approximately 31.6%[34] - Employee costs, including directors' remuneration, rose to HKD 99,808,000 in 2025 from HKD 94,590,000 in 2024[22] - Distribution and administrative expenses as a percentage of revenue decreased by 3.7 percentage points to 16.9%, attributed to efforts in controlling administrative staff and overall efficiency improvements[55] Tax and Dividends - The total tax expenses for 2025 were HKD 10,485,000, a significant increase from HKD 3,792,000 in 2024, reflecting a growth of approximately 176.5%[26] - The total dividend declared for the year was HKD 9,948,000, up from HKD 3,926,000 in 2024, representing an increase of about 153.5%[28] - The group proposed a final dividend of HKD 0.04 per share, bringing the total dividend for 2025 to HKD 0.06 per share, an increase from HKD 0.05 per share in 2024[45] Operational Insights - The company experienced a foreign exchange gain of HKD 3,620,000, compared to a loss of HKD 7,691,000 in 2024[6] - The company continues to launch newly developed cable and power line products to maintain revenue momentum in a rapidly changing business environment[57] - The geopolitical and trade tensions have created significant uncertainty in the current market, impacting global economic risks, particularly through energy markets[56] - The company has established production bases in China and Vietnam to mitigate tariff impacts, although this may not eliminate all associated risks[56] - The group is committed to continuous innovation and optimization in product design and operational processes to seize new opportunities arising from market recovery[58] Employment and Compliance - As of December 31, 2025, the company employed 840 full-time staff, a decrease from 880 in 2024, with a gender ratio of 1:2.2[60] - The company has implemented a set of guidelines for securities trading by directors and employees, ensuring compliance with the standards set forth in the listing rules[66] Audit and Meetings - The preliminary results for the year ending December 31, 2025, have been announced, with the financial statements audited by KPMG[71] - The annual general meeting for shareholders is scheduled for May 14, 2026, with a suspension of share transfer registration from May 11 to May 14, 2026[70] - To qualify for voting at the annual general meeting, share transfer documents must be submitted by 4 PM on May 8, 2026[70] - A proposed final dividend will be distributed, with a suspension of share transfer registration from May 25 to May 28, 2026[70] - Share transfer documents for the proposed final dividend must be submitted by 4 PM on May 22, 2026[70]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何 部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 （於百慕達註冊成立之有限公司） （股份代號：371） 截至二零二五年十二月三十一日止年度之 末期業績 業績摘要 業務亮點 1 • 截至二零二五年十二月三十一日止年度，本公司股東應佔溢利較去年之人民 幣1,677,600,000元減少7%至人民幣1,561,500,000元。 • 年內每股基本及攤薄盈利均為人民幣14.55分。 • 截至二零二五年十二月三十一日止年度，本集團建議派發末期股息每股9.25 港仙。全年股息為16.60港仙。 • 連續15年榮登中國水業十大影響力企業榜首。 • 連續3年入選標普全球《可持續發展年鑒（中國版）》 • 收入結構持續優化，自由現金流大幅改善 • 雲－鏈－端運營範式全面升級，集約化規模效益逐步展現 • 管理費用、融資成本持續壓降 • 海外業務實現裝備產品出海，存量與輕資產業務雙突破 • 開啟AI戰略元年：深化AI與數字化應用，促進組織與運營全面增效，邁向智 慧水務新時代。 ...

Financial Performance - For the fiscal year ending December 31, 2025, the company reported total revenue of RMB 5,345,091, an increase of 2.6% from RMB 5,209,874 in 2024[18]. - The company's profit before tax reached RMB 985,615, representing a 27.8% increase compared to RMB 771,254 in the previous year[18]. - Net profit for the year was RMB 715,092, up 23.2% from RMB 580,622 in 2024[18]. - Basic and diluted earnings per share were both RMB 0.61, an increase from RMB 0.56 in 2024[18]. - Total revenue increased by 2.6% from RMB 5,209.9 million in 2024 to RMB 5,345.1 million in 2025, driven by an increase in dine-in revenue of RMB 69.5 million and takeout revenue of RMB 60.3 million[43]. - Dine-in revenue rose by 2.2% from RMB 3,191.6 million in 2024 to RMB 3,261.0 million in 2025, attributed to an increase in the number of operating stores from 667 to 807[44]. - Takeout revenue grew by 3.0% from RMB 2,004.8 million in 2024 to RMB 2,065.1 million in 2025, with the number of takeout orders increasing from 29.0 million to 34.3 million[45]. - The net profit for 2025 was RMB 715 million, maintaining a net profit margin of 13.4%[23]. - Adjusted net profit (non-IFRS measure) for 2025 was RMB 715.1 million, compared to RMB 586.2 million in 2024[72]. Assets and Liabilities - Total assets as of December 31, 2025, amounted to RMB 3,797,723, a growth of 5.8% from RMB 3,587,900 in 2024[19]. - Total liabilities increased to RMB 1,357,484, up from RMB 1,222,485 in 2024, indicating a rise of 11.0%[19]. - The company's net assets reached RMB 2,440,239, reflecting an increase of 3.2% from RMB 2,365,415 in 2024[19]. - Trade and other receivables decreased from RMB 301.9 million in 2024 to RMB 272.2 million in 2025, attributed to improved supply chain management efficiency[76]. - Trade and other payables increased from RMB 228.5 million in 2024 to RMB 241.8 million in 2025, mainly due to increased payables for new store asset acquisitions[77]. - The company's bank loans as of December 31, 2025, totaled RMB 100 million, primarily for purchasing ingredients, with a fixed interest rate of 1.75%[81]. - The capital debt ratio as of December 31, 2025, was 4.1%, up from zero as of December 31, 2024, due to the increase in bank loans during the reporting period[84]. Operational Expansion - The company increased its store count by 146 in 2025, bringing the total to 819 stores, with 807 stores under the "Little Garden" brand, 42.5% of which are located in tier-three cities and below[23]. - The company aims to expand internationally, with Hong Kong identified as the first target for overseas market entry[32]. - The company plans to enhance its digital management capabilities, aiming for improved operational quality and efficiency through data collaboration across the supply chain by 2026[26]. - The central factory in Ma'anshan, Anhui Province, is on track to commence operations in the first half of 2026, focusing on intelligent and standardized supply chain management[27]. - The company plans to continue focusing on high-quality development and product innovation to strengthen its market position and enhance customer loyalty[92]. - The company aims to expand its store network steadily while deepening market penetration in mainland China and exploring opportunities in overseas markets[92]. Awards and Recognition - The company received multiple awards in 2025, including "Most Investable Listed Company" and "Best Value Consumer Company"[9]. Corporate Governance - The company has adhered to all applicable corporate governance codes during the reporting period, with some deviations noted in specific sections[120]. - The board of directors is responsible for all major decisions, including the approval and monitoring of significant policies and overall strategy[126]. - The company has appointed at least three independent non-executive directors, ensuring compliance with relevant regulations[125]. - The company emphasizes high standards of corporate governance to protect shareholder interests and enhance transparency[120]. - The company has established a governance policy that includes monitoring compliance with legal and regulatory requirements[127]. - The board has reviewed and monitored the training and continuous professional development of directors and senior management[127]. - The company has implemented policies for information disclosure, including the handling of insider information, to protect confidential information[139]. - The company held 2 board meetings and 1 annual general meeting during the reporting period, adhering to legal procedures[140]. - The Audit Committee held 2 meetings, reviewing the draft audited consolidated financial statements for the year ending December 31, 2024[145]. - The company has established three board committees: Audit, Remuneration, and Nomination, to enhance governance[143]. Risk Management - The company faces significant risks related to brand recognition, operational expansion, and market competition, which could adversely affect financial performance[182]. - The board is responsible for maintaining effective risk management and internal control systems, with annual reviews of their effectiveness[184]. - The company has established an internal audit function to monitor risk management policies and corporate governance measures[184]. - The company plans to continue its risk management and internal control assessments, ensuring compliance with applicable standards[144]. Social Responsibility - The company is committed to sustainable development, having donated RMB 3,018,340 to charitable causes in 2025[35]. - The group made charitable donations amounting to approximately RMB 3,018,340 for the year ending December 31, 2025[198]. - The company is committed to providing green and healthy dishes at affordable prices, aiming to become a trusted "family kitchen" for consumers[92]. Shareholder Communication - The company emphasizes the importance of effective communication with shareholders to enhance investor relations and understanding of business performance and strategy[168]. - The company’s website serves as a platform for communication with shareholders and investors, regularly updating information including financial statements and announcements[173]. - The company has established a policy for shareholder communication, ensuring transparency and timely disclosure of company information[175]. - The company encourages shareholders to provide their email addresses for effective communication and timely updates[172]. - The company’s annual general meeting provides an opportunity for directors and senior management to communicate with shareholders and answer their questions[169]. Board Composition and Diversity - The board currently consists of 2 female directors and 7 male directors, with female representation at 22%[158]. - The overall gender diversity among employees, including senior management, is balanced, with females making up 42.58% and males 57.42%[160]. - The company aims to maintain gender balance among employees and continuously optimize personnel structure to promote gender diversity[160]. - The nomination committee is responsible for implementing the board diversity policy and will review it annually to ensure its effectiveness[159]. - The company has adopted a board diversity policy that emphasizes the importance of diversity in maintaining competitive advantage and attracting talent[158].

Revenue and Sales Performance - Revenue increased to $258.1 million, up from $221.2 million in 2024, primarily due to a 25% increase in sales volume despite a 6.4% decrease in iron content prices[6]. - Total revenue for 2025 was $258,052,000, reflecting a 16.7% increase compared to $221,156,000 in 2024[12]. - The sales volume of iron concentrate reached 2,928,251 tons in 2025, up 25.0% from 2,342,633 tons in 2024[12]. - Revenue from iron ore sales increased by 16.7% to $258.1 million, despite the decline in iron ore prices[28]. - Revenue from the small engineering services division, Giproruda, was $321,000 in 2025, up from $202,000 in 2024[31]. - Revenue from customer contracts primarily categorized by major products or services, with iron ore sales generating $257.731 million in 2025, up from $220.954 million in 2024, representing a growth of approximately 16.6%[106]. - Revenue from the People's Republic of China was $248.859 million in 2025, up from $205.162 million in 2024, marking an increase of 21.2%[106]. Production and Operational Efficiency - Production volume rose by 23% to 2,925 thousand tons, compared to 2,378 thousand tons in 2024, attributed to improved ore quality and recovery rates[6]. - The company produced 2,925,373 tons of iron concentrate in 2025, a 23.0% increase from 2,377,519 tons in 2024[12]. - The K&S plant operated at 93% of its design capacity in 2025, contributing to the overall operational efficiency[80]. - The Sutara mine's integration has significantly improved operational performance, contributing to record production and sales for the year[71]. - The company is focused on operational efficiency improvements and has begun internal mining operations to reduce reliance on external contractors[6]. - The company is committed to improving operational efficiency and optimizing internal mining processes to lower costs further[75]. Financial Performance and Losses - Adjusted EBITDA (excluding exceptional items and foreign exchange) was $17.2 million, up from $9.3 million in 2024[6]. - The company reported a net loss attributable to shareholders of $131.5 million, compared to a loss of $20.5 million in 2024[6]. - The company reported a basic loss per share of $10.29 for 2025, compared to a loss of $2.32 per share in 2024, indicating a substantial increase in losses[94]. - The company recorded a loss before tax of $131,778,000 for 2025, compared to a loss of $19,868,000 in 2024, reflecting a significant increase in losses[94]. - The group recorded a loss of $131.5 million for the year, compared to a loss of $20.5 million in 2024, primarily due to impairment losses related to the K&S mine and other assets totaling $159.6 million[47]. - Despite strong sales growth, the company recorded an adjusted net loss of $3.4 million due to declining iron ore prices and the appreciation of the ruble[80]. Impairment and Asset Management - K&S asset impairment expense was $152.9 million, attributed to the appreciation of the Russian ruble and expected future cost increases[6]. - The company recognized an impairment loss provision of $159,610,000 in 2025, which was not applicable in 2024[15]. - The impairment loss related to the K&S mine was $152.9 million, primarily due to the appreciation of the Russian ruble affecting operational costs[21]. - The recoverable amount of the K&S project is approximately $139.9 million as of December 31, 2025, down from $268.1 million in 2024, resulting in an impairment loss of $152.9 million for the year[121]. Cash Flow and Capital Management - Cash and deposits decreased to $41.6 million from $60.7 million as of December 31, 2024, mainly due to voluntary repayment of MIC loans and capital expenditures for mining operations[6]. - Operating cash flow increased to $29.9 million in 2025, up from $6.3 million in 2024, driven by improved EBITDA[49]. - The group’s net cash position improved to $13.5 million in 2025, compared to $15.9 million in 2024[67]. - Capital expenditures for the year amounted to $33.6 million, significantly higher than $17.4 million in 2024, primarily due to the acquisition of K&S mining equipment[50]. - The company raised approximately $41.8 million through a rights issue to strengthen its balance sheet and support future growth[88]. Market Outlook and Economic Environment - The short-term market outlook remains uncertain, with ongoing challenges in the global economic environment and iron ore demand[10]. - The external economic environment remains challenging, with no quick resolution expected, but the company's fundamentals are at their strongest level in years[75]. - The outlook for 2026 is cautious yet optimistic, focusing on operational execution and continuous improvement amid challenging market conditions[90]. Employee and Operational Changes - The total employee cost increased to $45.9 million in 2025, up from $32.9 million in 2024, reflecting an increase in workforce and inflationary pressures[68]. - As of December 31, 2025, the group has 1,817 employees, an increase from 1,670 in 2024, to meet operational demands[68]. - New mining equipment, including a 22-cubic meter excavator and a fleet of trucks, was successfully deployed by the end of 2025 to reduce reliance on third-party contractors[82]. Compliance and Governance - The company has adopted the corporate governance principles and has confirmed compliance with the standards set forth in the Listing Rules Appendix C3 for securities trading by directors[147]. - The group’s auditor has submitted reports on the consolidated financial statements for the years ending December 31, 2024, and December 31, 2025, with no reservations noted[101].

Financial Performance - For the fiscal year ending December 31, 2025, the company reported total revenue of RMB 1,637.3 million, a decrease of 20.7% compared to RMB 2,065.7 million in 2024[2]. - The company's gross profit for 2025 was RMB 854.1 million, down 11.5% from RMB 965.4 million in 2024, with a gross margin increase of 5.5 percentage points to 52.2%[2][8]. - The adjusted net profit for 2025 was RMB 25.2 million, a significant improvement from an adjusted net loss of RMB 469.6 million in 2024, reflecting a 105.4% change[2][8]. - Total revenue for the year ended December 31, 2025, was RMB 1,637.3 million, a decrease of 20.7% compared to RMB 2,065.7 million for the year ended December 31, 2024[21]. - Revenue from proprietary sports products was RMB 778.1 million, down 18.4% from 953.9 million in 2024, primarily due to the reduction of underperforming categories[21]. - Revenue from online membership and paid content decreased by 25.9% to RMB 679.7 million from RMB 917.8 million in 2024, mainly attributed to a decline in online sports event revenue[22]. - The loss for the year ended December 31, 2025, was RMB 71.8 million, significantly reduced from a loss of RMB 534.7 million for the year ended December 31, 2024, attributed to improved gross margins across business segments[33]. - The total loss attributable to the company's owners decreased to RMB 71,786,000 in 2025 from RMB 534,710,000 in 2024, reflecting a reduction of approximately 87%[83]. - Basic loss per share improved to RMB (0.16) in 2025 from RMB (1.15) in 2024, indicating a significant reduction in losses per share[83]. User Engagement and Growth - The average monthly active users (MAU) decreased to 21.8 million in 2025 from 29.9 million in 2024, while the average monthly revenue per user increased by 8.9% to RMB 6.3[6][8]. - The membership penetration rate rose to 12.6% in 2025 from 10.6% in 2024, with the average monthly subscribers decreasing to 2.74 million from 3.16 million[6][8]. - The company achieved a daily active user (DAU) exercise rate of 57.8% in 2025, an increase of 5.3 percentage points year-over-year[9]. - The company aims to deepen user engagement and enhance multi-category sports experiences through refined operations and content supply[9]. Business Strategy and Transformation - The company is transitioning from a content-driven platform to an AI-driven sports health ecosystem, focusing on enhancing operational efficiency and user engagement[5][7]. - The company plans to continue optimizing its business structure by reducing low-margin hardware products and focusing on core business areas such as membership subscriptions and fitness-related consumer goods[8]. - The company is focusing on building a sustainable channel and operational efficiency through channel expansion and AI tools to enhance user engagement and lifetime value (LTV)[17]. - The company plans to enhance its AI capabilities and optimize user interaction through the development of an AI-driven sports health ecosystem[20]. Product and Market Performance - In 2025, Keep's consumer goods business achieved revenue of RMB 778.1 million, with a gross margin increase of 4.1 percentage points year-on-year to 35.8%[14]. - The equipment category contributed over 60% to consumer goods revenue, a 15 percentage point increase from 2024, with significant growth in core home fitness products exceeding RMB 300 million in gross sales value (GSV)[15]. - New product sales in the fitness equipment category exceeded 400,000 units, with a sell-through rate of over 100% for new items within the first 60 days[15]. - The water sports equipment category achieved GSV of over RMB 35 million, with swimming goggles sales exceeding 300,000 units, marking a growth of over 50% year-on-year[15]. AI and Technology Development - The AI coach "Kaka" generated personalized training plans for over 1.3 million users, with voice coaching calls exceeding 21 million and training plan completions reaching 340,000[10]. - Keep's platform accumulated over 14 billion exercise records by the end of 2025, reinforcing its position as a leading global sports data platform[12]. - The company constructed a high-quality post-training dataset of 12GB to enhance its self-developed AI model capabilities in the sports health domain[11]. - The AI interaction model showed a 69% retention rate for data analysis capabilities, indicating long-term value in high-frequency decision-making scenarios[10]. - Keep's AI-generated content (AIGC) has reached levels comparable to human output, enhancing content packaging and iteration efficiency[13]. - The company has developed over 50 new advanced indicators in sports health, enriching the precision of professional sports data[12]. Financial Position and Liquidity - Total available funds as of December 31, 2025, amounted to RMB 850.5 million, down from RMB 1.2 billion as of December 31, 2024[37]. - Cash and cash equivalents as of December 31, 2025, were RMB 162.0 million, a decrease from RMB 764.3 million as of December 31, 2024, primarily due to cash used for financial asset investments[37]. - The company had 645 full-time employees as of December 31, 2025, compared to 827 employees as of December 31, 2024[42]. - The company had no outstanding bank borrowings, and the debt-to-asset ratio was 0.24, down from 0.29 as of December 31, 2024[44]. - Accounts receivable decreased to RMB 219,318,000 in 2025 from RMB 237,178,000 in 2024, a decline of about 8%[85]. - The provision for credit losses on accounts receivable decreased to RMB 26,238,000 in 2025 from RMB 31,987,000 in 2024, reflecting a reduction of approximately 18%[85]. Regulatory and Compliance - The company is currently assessing the impact of the new International Financial Reporting Standards (IFRS) 18 on its financial statements, particularly regarding the structure of the income statement and cash flow statement[62]. - The introduction of IFRS 18 will require entities to categorize all income and expenses into five categories, which may affect the presentation and disclosure of financial performance[62]. - The company anticipates that the adoption of the new and revised standards will not have a significant impact on the consolidated financial statements[63]. - The company has been recognized as a high-tech enterprise, benefiting from a reduced corporate income tax rate of 15% for the fiscal years ending December 31, 2025, and 2024[77]. Shareholder and Corporate Governance - The company does not recommend the distribution of a dividend for the fiscal year ending December 31, 2025[107]. - The audit committee, consisting of three independent non-executive directors, reviewed the consolidated financial statements for the year ended December 31, 2025[101]. - The independent auditor confirmed that the financial figures in the annual performance announcement were consistent with the draft consolidated financial statements[102]. - The board expresses gratitude to shareholders, management, employees, business partners, and customers for their support and contributions[110].

Financial Performance - For the fiscal year ending December 31, 2025, the company reported revenue of RMB 130.27 million, representing a year-on-year increase of approximately 25% compared to RMB 104.70 million in 2024[4]. - The company incurred a net loss of RMB 1.79 billion for the fiscal year 2025, compared to a net loss of RMB 677.64 million in 2024[4]. - Cash and bank balances as of December 31, 2025, amounted to RMB 2.07 billion, a significant increase from RMB 394.92 million in 2024[4]. - The group's revenue for the year ended December 31, 2025, was RMB 130,267 thousand, representing an increase of 24.4% from RMB 104,703 thousand in 2024[77]. - The net loss for the year was RMB 1,794,528 thousand, compared to a net loss of RMB 677,641 thousand in 2024, reflecting a significant increase in losses[77]. - The adjusted net loss (non-IFRS measure) for the year ended December 31, 2025, was RMB 226.5 million, compared to RMB 249.7 million for the year ended December 31, 2024[68]. - The effective corporate tax rate for the company was 15% for the year, benefiting from its status as a "High-tech Enterprise" in China[93]. - The company reported a basic loss per share of RMB 6.07 for 2025, compared to RMB 2.62 for 2024, reflecting a worsening financial position[103]. Product Development and Clinical Trials - The company launched its first approved product, a KRAS G12C inhibitor, in 2024, which was included in the national medical insurance drug list in 2025[5]. - The company’s lead product, GFH375, entered the global first Phase III registration clinical trial for oral KRAS G12D inhibitors in November 2025, targeting metastatic pancreatic cancer[8]. - GFH375 demonstrated an overall response rate (ORR) of 57.7% and a disease control rate (DCR) of 88.5% in a study involving 26 evaluable NSCLC patients[11]. - The KROCUS study, combining Fluorouracil with Cetuximab, has shown an objective response rate (ORR) of 80% and a disease control rate (DCR) of 100% in 45 evaluable patients, with a median progression-free survival (mPFS) of 12.5 months[15]. - The company is developing a dual-target therapy for cachexia, which affects over 60% of pancreatic cancer patients, aiming to provide a new targeted treatment matrix for pancreatic cancer[14]. - The KROCUS study represents the world's first KRAS+EGFR first-line treatment for non-small cell lung cancer (NSCLC), which accounts for over 80% of lung cancer cases, with a mutation rate of nearly 30%[16]. - The company is advancing the first GDF15/IL-6 dual antibody therapy for cachexia, which is currently in I-phase clinical trials, targeting a significant unmet need in cancer and chronic disease patients[16]. - The oral STAT6 PROTAC degrader GFH946 is being developed to address the unmet needs in type 2 inflammatory diseases, showing superior in vitro activity compared to existing treatments[16]. - GFH375 is a small molecule oral KRAS G12D inhibitor, entering a Phase I/II clinical trial in China in June 2024 and a Phase III registration trial for metastatic pancreatic cancer in November 2025[21]. - The company has secured bank loans totaling RMB 83,901 thousand, with interest rates ranging from 2.25% to 2.75% for unsecured loans and 2.50% for secured loans[107][108]. Market Opportunities - The global market for KRAS inhibitors is expected to reach USD 7 billion by the end of 2025, with a peak sales forecast for RMC-6236 increasing from USD 230 million at the end of 2024 to USD 7 billion by the end of 2025[49]. - The KRAS G12D mutation accounts for approximately 30% of all KRAS mutations, with the market for KRAS G12D inhibitors projected to grow significantly, reaching USD 7.8 billion by 2034, with a CAGR of 35% over the next ten years[49]. - The global incidence of pancreatic cancer is expected to exceed 770,000 new cases by 2037, with a CAGR of 2.6% over the next ten years, indicating a significant market opportunity[52]. - The global pancreatic cancer drug market is projected to exceed RMB 93 billion by 2037, with a CAGR of 13.6% over the next decade[54]. Research and Development - The company has one of the most comprehensive RAS-targeted therapy matrices globally, including selective and pan-RAS inhibitors, with various molecular types such as small molecule inhibitors and antibody-drug conjugates[12]. - The pipeline includes various selective and pan-RAS inhibitors, as well as dual antibody therapies targeting cachexia, which are expected to bring new treatment options for pancreatic cancer[14]. - The company has obtained a total of 57 authorized patents by the end of 2025, covering Asia, Europe, and North America, which supports the uniqueness and technological advancement of its products[46]. - The company is developing a next-generation drug development platform, enhancing capabilities in target discovery, molecular optimization, and clinical development[45]. - The FAScon platform aims to expand from RAS pathway targeting to broader disease areas, exploring synergistic effects beyond molecular levels[45]. Corporate Governance and Management - The company completed its transition to a limited company and listed its H-shares on September 19, 2025, enhancing its corporate governance structure[111]. - Following a special resolution on February 9, 2026, the company abolished its supervisory board, transferring its powers to the audit committee, which reflects a shift in governance[117]. - Mr. Wu Dongcheng will resign as Co-Company Secretary effective March 24, 2026, with no disagreements with the board[119]. - Ms. Huang Meifeng has been appointed as Co-Company Secretary, Authorized Representative, and Legal Process Agent effective March 24, 2026[119]. - The company has received a new exemption from strict compliance with Listing Rules regarding Ms. Zhang's qualifications as Co-Company Secretary, effective March 24, 2026, until September 18, 2028[125]. Operational Efficiency - The company aims to reduce operational costs by 10% through improved efficiency measures implemented in Q2 2026[137]. - The company has achieved a disease control rate (DCR) of 70% in recent clinical trials, indicating strong efficacy of its leading product[135]. - The company is focusing on enhancing its intellectual property portfolio, with five new patents filed in the last quarter[136]. Strategic Partnerships and Collaborations - The company is actively pursuing international collaborations and partnerships to enhance product development and commercialization strategies, leveraging its diverse pipeline of small molecules and antibody-drug conjugates[55]. - The company’s collaboration partner, Verastem, exercised an option for GFH375 in January 2025, obtaining development and commercialization rights outside Greater China[10].

Financial Performance - Revenue for the year ended December 31, 2025, increased to RMB 41,498 million, up from RMB 40,910 million in 2024, representing a growth of 1.43%[4] - Gross profit rose to RMB 20,698 million, with a gross margin of 49.88%, compared to RMB 19,544 million and a gross margin of 47.77% in 2024[4] - Operating profit decreased slightly to RMB 2,728 million from RMB 2,780 million, indicating a decline of 1.87%[4] - Profit attributable to equity holders of the parent company increased to RMB 3,371 million, up from RMB 2,770 million, reflecting a growth of 21.73%[4] - Basic and diluted earnings per share improved to RMB 1.27, compared to RMB 1.04 in the previous year, marking a 22.12% increase[4] - The company reported a net profit margin of 10.24%, compared to 8.59% in 2024, showing improved profitability[4] - The total comprehensive income for the year was RMB 3,572 million, slightly up from RMB 3,555 million in 2024, indicating stable performance[7] - The company reported a pre-tax profit of RMB 5,111,984 thousand, with a net profit of RMB 4,247,930 thousand after tax[25] - The company reported a total segment profit of RMB 3,025,444 thousand, down from RMB 3,304,450 thousand in the previous year, indicating a decrease of approximately 8.4%[27] - The company reported a net profit attributable to shareholders reached RMB 3,371 million, reflecting a year-on-year growth of 21.69%[50] Assets and Liabilities - Total assets as of December 31, 2025, amounted to RMB 120,016 million, an increase from RMB 117,422 million in 2024[4] - Total liabilities rose to RMB 58,214 million from RMB 57,527 million, indicating a growth of 1.20%[4] - The total liabilities of the company were RMB 58,213,618 thousand, with the pharmaceutical segment accounting for RMB 23,843,861 thousand[25] - The company’s total assets reached RMB 117,422,190 thousand, up from RMB 110,726,649 thousand in 2024, marking an increase of about 6.1%[27] - The company’s total liabilities were RMB 57,526,838 thousand, compared to RMB 19,857,303 thousand in segment liabilities, indicating a substantial increase in overall financial obligations[27] Research and Development - Research and development expenses increased to RMB 4,012 million, up from RMB 3,644 million, reflecting a commitment to innovation[6] - The company’s financial costs totaled RMB 573,819 thousand, impacting overall profitability[25] - The company’s pharmaceutical business R&D investment was RMB 5,361 million, up 9.19% year-on-year[171] - Total R&D investment for the year 2025 reached RMB 5,913 million, a year-on-year increase of 6.46%[171] - The proportion of innovative drug-related R&D investment was 72.77%, increasing by 5.97 percentage points year-on-year, totaling RMB 4,303 million[171] Market and Revenue Segments - The pharmaceutical segment generated revenue of RMB 29,802,656 thousand, contributing significantly to the overall revenue of RMB 41,498,325 thousand[25] - Revenue from innovative drugs amounted to RMB 9,893 million, a year-on-year increase of 29.59%, accounting for 23.84% of total revenue[51] - Revenue from external customers in mainland China was RMB 28,520,899 thousand, a decrease from RMB 29,612,556 thousand in 2024, reflecting a decline of about 3.7%[29] - The company’s segment revenue from medical devices was RMB 29,683,394 thousand, while revenue from pharmaceutical distribution was RMB 7,361,303 thousand, contributing significantly to total revenue[32] - The company achieved operating revenue of RMB 41,498 million, a year-on-year increase of 1.44%[50] Regulatory and Compliance - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, with amounts reported in Renminbi rounded to the nearest thousand[10] - The group assesses control over subsidiaries based on the ability to influence returns through relevant activities, considering all facts and circumstances[12] - The group has adopted HKAS 21 (Revised) regarding the assessment of currency convertibility, which has no impact on the financial statements due to the exchangeability of currencies used[14] - The group has not early adopted any new standards or amendments that have been issued but are not yet effective[14] - The group must apply the new standards and amendments upon their effective date, which will affect the financial reporting starting from January 1, 2027[17] Strategic Initiatives and Future Plans - The company plans to continue expanding its market presence and investing in new technologies and products to drive future growth[24] - The company is focusing on core therapeutic areas such as oncology, immune inflammation, and neurodegenerative diseases, while also expanding into chronic diseases and rare diseases[59] - The company is actively pursuing partnerships and collaborations to enhance its research capabilities and market reach[115] - The company aims to enhance its market presence through the development of innovative biologics and chemical drugs[107] - The company is committed to advancing its research and development efforts to bring new therapies to market more quickly[99] Operational Efficiency and Cost Management - Sales and distribution expenses were RMB 9,193 million, with a cost ratio of 22.15%, remaining stable compared to the previous year[167] - Administrative expenses increased by 7.32% year-over-year to RMB 4,765 million, primarily due to increased equity incentive costs and new subsidiary consolidations[167] - The company is focusing on optimizing its asset structure by accelerating the divestment of non-core assets and enhancing the quality of its rehabilitation services[146] - The company is committed to maintaining high production standards to meet global health regulations[101] Clinical Trials and Product Development - The company has received approval for multiple new drugs, including HLX14 and BILODYOS, targeting osteoporosis and cancer treatment, with specific indications for high-risk patients[106] - The company is advancing multiple clinical trials, including a combination of HLX22 and standard therapy for HER2-positive gastric cancer, with ongoing international multi-center studies[112] - The company is developing HLX43, which targets PD-L1 and EGFR, for late-stage/metastatic solid tumors, with clinical trial approvals pending[112] - The company is focusing on innovative drug development, particularly in the oncology sector, with several drugs in various stages of clinical trials[113] Market Expansion and Global Strategy - The company has established a global operational network covering markets in China, the US, Europe, Africa, India, and Southeast Asia, transitioning from a "product export" model to a "system export" model[71] - The company is expanding its market presence with the launch of new therapies, including a dual-targeted treatment for cancer patients[100] - The company is actively pursuing regulatory approvals for its drug candidates to enhance market presence and drive future growth[111] - The company is focusing on expanding its clinical trial pipeline, with multiple projects aimed at addressing significant unmet medical needs[111]

Financial Performance - In 2025, the company achieved revenue of $3,420.1 million, a decrease of 10.4% compared to $3,816.5 million in 2024[2]. - The net profit for 2025 was $583.2 million, an increase of 4.6% from $557.5 million in 2024[3]. - Profit attributable to owners of the company rose to $404.3 million in 2025, up 1.5% from $398.5 million in 2024[3]. - The basic earnings per share for 2025 was approximately 10.36 cents, slightly up from 10.34 cents in 2024[3]. - The board proposed a final dividend of 4.1446 cents per share for 2025[4]. - Operating profit for 2025 was $817.985 million, compared to $786.762 million in 2024[6]. - Cash generated from operating activities was $938.657 million, an increase from $775.216 million in 2024[10]. - The total profit for the year was $583,212 thousand, compared to $557,476 thousand in the previous year, indicating a year-over-year increase of approximately 4.3%[21][23]. - The total revenue for 2025 was $3,420.1 million, a decrease of 10.4% compared to $3,816.5 million in 2024, primarily due to increased processing of copper and an overall decline in self-produced copper sales[103]. - Revenue from copper and anode copper decreased by 26.6% from $2,452.1 million in 2024 to $1,800.7 million in 2025, attributed to increased processing for external companies and a decline in self-produced sales[103]. - Revenue from cathode copper increased by 12.2% from $1,075.6 million in 2024 to $1,207.0 million in 2025, driven by higher sales volume and rising international copper prices[104]. - The total sales cost for 2025 was $2,357.5 million, down 14.8% from $2,767.3 million in 2024, mainly due to increased processing for external companies[107]. - Gross profit for 2025 was $1,062.5 million, an increase of 1.3% from $1,049.1 million in 2024, with a gross margin rising from 27.5% in 2024 to 31.1% in 2025[109]. Assets and Liabilities - Total assets as of December 31, 2025, were $4,803.261 million, up from $4,154.407 million in 2024[8]. - Total equity increased to $3,412.570 million in 2025, compared to $3,029.092 million in 2024[8]. - The total liabilities increased to $1,390,691 thousand in 2025 from $1,125,315 thousand in 2024, marking an increase of about 23.6%[27]. - The company reported trade payables at amortized cost of $242,784,000 in 2025, an increase from $216,259,000 in 2024, with significant amounts due within 30 days[43]. - The total trade receivables as of December 31, 2025, amount to $334.9 million, an increase of $78.3 million from $256.6 million in 2024, mainly due to increased sales revenue from copper products[120]. Production and Operations - The total production of copper and anode copper was 192,266 tons, a year-on-year decrease of 32.8%, while the production of sulfuric acid increased by 1.2% to 1,068,286 tons[51]. - The company processed 227,060 tons of copper products, representing a significant year-on-year increase of 102.9%[51]. - The production of cobalt hydroxide decreased by 17.9% to 829 tons, while the production of liquid sulfur dioxide saw a significant decline of 66.6% to 5,337 tons[51]. - The total production from the company's own mines for copper and anode copper was 60,686 tons and 82,458 tons respectively, down from 77,668 tons and 81,491 tons in 2024[91]. - The total production of copper and anode copper at the Kambishi smelter in 2025 was 261,067 tons, a decrease of 0.7% year-on-year, influenced by a 16-day maintenance shutdown and lower sulfur content in copper concentrate from suppliers[84]. Cash Flow and Investments - The net cash inflow from operating activities for 2025 is projected to be $938.7 million, an increase of $163.5 million from $775.2 million in 2024, primarily due to an increase in trade and other payables and a decrease in inventory[116]. - The net cash outflow from investing activities for 2025 is expected to be $274.9 million, an increase of $195.4 million from $79.5 million in 2024, mainly due to a decrease in the amount of fixed deposits converted to current accounts[117]. - The net cash outflow from financing activities for 2025 is projected to be $209.6 million, an increase of $36.6 million from $173.0 million in 2024, primarily due to an increase in dividend payments[118]. - The total capital expenditure for 2025 is $314.9 million, an increase of $146.1 million from $168.8 million in 2024, mainly due to increased investments in various mining projects[123]. Corporate Governance and Compliance - The audit committee has confirmed that the financial statements for the year ending December 31, 2025, comply with applicable accounting standards and regulations[147]. - The company has adopted a code of conduct for directors' securities transactions, ensuring compliance with the listing rules[140]. - As of December 31, 2025, there were no reported interests or short positions in shares or related securities held by directors or key executives[141]. - The company has not made any significant acquisitions or disposals of subsidiaries or joint ventures during the year ended December 31, 2025, nor does it have plans for significant investments or capital asset purchases as of the announcement date[129]. Future Outlook - The company anticipates a complex external environment in 2026, with geopolitical uncertainties and macroeconomic recovery remaining uncertain[134]. - The company plans to focus on high-quality development, enhancing production capacity, and optimizing governance structures in 2026[135]. - The company is committed to enhancing efficiency, reducing costs, and innovating to improve production quality in 2025[48].

天璽曜11有限公司 （股份代號：1010） （於百慕達註冊成立之有限公司） 第二份 中期報告 2025 SECOND INTERIM REPORT 2025 Sky Blue 11 Company Limited (Incorporated in Bermuda with limited liability) (Stock code: 1010) Sky Blue �� Company Limited 天璽曜��有限公司 SECOND INTERIM REPORT 2025 第二份中期報告 目錄 1 天璽曜11有限公司 2 公司資料 3 管理層討論及分析 9 其他資料 12 簡明綜合中期損益表 13 簡明綜合中期全面收益表 14 簡明綜合中期財務狀況表 15 簡明綜合中期權益變動表 16 簡明綜合中期現金流量表 17 簡明綜合中期財務報表附註 公司資料 董事會 執行董事 李微娜女士 彭鎮城先生 張羽博士 附註1 提名委員會 陳霆畧先生 （主席） 附註2 程晴女士 王翔弘先生 宋冬林博士 附註1 陳霆畧先生 （主席） 附註2 程晴女士 王翔弘先生 宋冬林博士 附註1 薪酬委員會 獨立非執行董事 程晴女士 陳霆畧 ...

Financial Performance - For the fiscal year ending December 31, 2025, the net income was RMB 2,610.2 million, an increase of 0.4% compared to 2024[9]. - Shareholders' net profit rose by 17.5% to RMB 558.9 million from RMB 475.4 million in the previous year[9]. - Non-GAAP shareholders' net profit increased by 11.2% to RMB 611.9 million from RMB 550.2 million in 2024, primarily due to cost control strategies[9]. - Total revenue for 2024 is RMB 2,621,334 thousand, with a slight increase to RMB 2,629,787 thousand projected for 2025, reflecting a growth of 0.3%[11]. - Net income for 2024 is RMB 2,600,982 thousand, expected to rise to RMB 2,610,240 thousand in 2025, indicating a growth of 0.4%[11]. - Operating income is projected to increase significantly by 22.5%, from RMB 633,889 thousand in 2024 to RMB 776,664 thousand in 2025[11]. - Adjusted net income attributable to shareholders is expected to grow by 11.2%, from RMB 550,185 thousand in 2024 to RMB 611,920 thousand in 2025[11]. - Total revenue increased by 0.3% from RMB 2,621.3 million in 2024 to RMB 2,629.8 million in 2025, primarily due to increased performance fee income from overseas private equity products[41]. - Wealth management business total revenue decreased by 5.1% from RMB 1,808.4 million in 2024 to RMB 1,715.6 million in 2025, with total fundraising remaining stable at RMB 67 billion[42]. - The company’s total comprehensive income for the year ended December 31, 2025, is RMB 412,413, down from RMB 599,135 in 2024, reflecting a decrease of approximately 31.2%[109]. Revenue Sources - Revenue from public market securities increased by 15.5%, despite a 10.4% decline in private equity product contributions[14]. - The fundraising volume for public market securities increased by 42.9%, driven by a 107.2% growth in RMB-denominated private securities fund products[16]. - Revenue from domestic public market securities is expected to rise by 15.5%, from RMB 493.8 million in 2024 to RMB 570.3 million in 2025, primarily due to increased fundraising and performance fee income[33]. - Domestic asset management revenue is forecasted to decrease by 10.4%, from RMB 773.2 million in 2024 to RMB 693.1 million in 2025, attributed to a decline in the asset management scale of private equity products in mainland China[34]. - Revenue from domestic insurance is anticipated to drop by 56.6%, from RMB 43.2 million in 2024 to RMB 18.8 million in 2025, mainly due to reduced distribution of domestic insurance products[36]. - Revenue from overseas wealth management is projected to decline by 18.8%, from RMB 674.7 million in 2024 to RMB 547.5 million in 2025, primarily due to decreased fundraising income from distributed products[37]. - Overseas asset management revenue is expected to increase by 26.3%, from RMB 438.5 million in 2024 to RMB 553.9 million in 2025, driven by higher management and performance fee income from overseas investment products[38]. - Revenue from overseas heritage services is projected to grow by 28.8%, from RMB 138.9 million in 2024 to RMB 178.8 million in 2025, mainly due to increased fundraising from non-salaried brokers for overseas insurance products[39]. Cost Management - Operating expenses decreased by 6.8% due to the cost optimization plan implemented at the end of 2024[14]. - The company plans to focus on cost control, innovative customer acquisition strategies, and operational restructuring to enhance efficiency[14]. - Total operating costs and expenses decreased by 6.8% from RMB 1,967.1 million in 2024 to RMB 1,833.6 million in 2025[48]. - Operating costs in domestic asset management decreased by 36.3% from RMB 198.0 million in 2024 to RMB 126.2 million in 2025, attributed to cost control measures[49]. - Operating costs in overseas wealth management decreased by 28.9% from RMB 569.2 million in 2024 to RMB 404.9 million in 2025, due to cost control measures and reduced commission expenses[51]. - Wealth management operating costs decreased by 8.1% from RMB 1,456.7 million in 2024 to RMB 1,338.8 million in 2025, primarily due to reduced loss provisions related to long-term receivables and employee compensation cost control strategies[57]. - Total operating costs decreased by 6.8% from RMB 1,967.1 million in 2024 to RMB 1,833.6 million in 2025, mainly due to employee compensation cost control strategies[56]. Strategic Initiatives - The company established its global headquarters in Singapore and formed a strategic partnership with Tokyo Star Bank in Japan[6]. - The integration of AI into the company's global platform is expected to enhance operational efficiency and customer service capabilities[8]. - The company is focusing on adapting to a deflationary environment driven by technological innovation, shifting from inflation-hedging strategies[5][6]. - The company aims to expand its overseas wealth management team to increase its influence among global Chinese clients[9]. - The company is positioned at the crossroads of changing capital flows in Asia, leveraging regional challenges into long-term strategic advantages[6]. - The company is committed to optimizing its revenue mix towards asset management-driven and investment-oriented structures[8]. - The company plans to enhance its global product portfolio and investment capabilities to better serve a diverse customer base, focusing on high-quality, diversified investment opportunities[27]. - The company is actively exploring new business models and expanding insurance products beyond Hong Kong to enhance customer acquisition capabilities[22]. Legal and Compliance - The company has not faced any significant adverse legal, arbitration, or administrative proceedings that could impact its business or financial condition during the reporting period[99]. - The company has initiated a new settlement plan to resolve issues with the remaining affected customers, with limited acceptance reported as of December 31, 2025[100]. - The company has recognized a contingent liability of RMB 530.4 million related to potential settlements with investors affected by the "Chengxing Incident"[130]. - The company has 42 unresolved legal claims related to the Chengxing incident, with total claims exceeding RMB 138.1 million as of December 31, 2025[96]. - The audit committee has reviewed the unaudited annual performance for the year ending December 31, 2025, and recommended approval to the board[89]. - The company has confirmed compliance with the standards of the securities trading code during the reporting period[88]. Shareholder Returns - The board proposed a final dividend of RMB 306.0 million (approximately USD 44.4 million) for the year ended December 31, 2025, representing 50% of the net income attributable to shareholders under non-GAAP[104]. - The company has a dividend policy that aims to distribute at least 35% of the previous fiscal year's net income attributable to shareholders, subject to various factors[103]. - The company plans to distribute a final dividend of RMB 0.933 per share and a special dividend of RMB 0.933 per share, both equivalent to approximately $0.133, subject to shareholder approval at the upcoming annual general meeting[105]. - The company declared a final dividend of RMB 306 million for the year ending December 31, 2025, along with a special dividend of RMB 306 million, totaling RMB 612 million[138]. Capital Structure - The total assets of the company as of December 31, 2025, amounted to RMB 11.7 billion, with no interest-bearing debt, maintaining a robust capital structure[25]. - The company's leverage ratio remained stable at 15.0% as of December 31, 2025, unchanged from December 31, 2024[76]. - As of December 31, 2025, the company had cash and cash equivalents of RMB 4,360.9 million, sufficient to meet expected cash needs for at least the next 12 months[71]. - The company reported a total operating expense of RMB 1,833,576 for the year ended December 31, 2025, compared to RMB 1,967,093 in 2024, showing a reduction of about 6.8%[107]. Employee and Governance - The total number of employees as of December 31, 2025, was 1,778, with 27.9% in business development and 23.3% in back-office support[83]. - The company has adopted a share incentive plan in 2022 to enhance employee motivation and retention[85]. - The company maintained compliance with the Corporate Governance Code throughout the reporting period, ensuring high standards of corporate governance[86]. - The board of directors includes a diverse group of members, ensuring a range of insights and governance for strategic decision-making[142].