[Company Information](index=2&type=section&id=Company%20Information) This chapter provides an overview of the company's basic organizational structure, key management members, professional advisors, and registration and operation locations, offering a foundation for understanding corporate governance and operations [Board of Directors](index=3&type=section&id=Board%20of%20Directors) The Board of Directors comprises executive, non-executive, and independent non-executive directors, with Mr. Kong Jian serving as Chairman - Board members include Mr. Kong Jian (Chairman), Ms. Jiang Xianmin, Ms. Zhang Yanping (Executive Directors), Mr. Ma Biao, Mr. Kong Shuangquan (Non-executive Directors), and Ms. Hou Aijun (Chief Independent Non-executive Director), Mr. Liang Weiye, Mr. Liang Yiye (Independent Non-executive Directors)[3](index=3&type=chunk) [Supervisors](index=3&type=section&id=Supervisors) The Board of Supervisors includes Ms. Peng Ling, Ms. Kong Qian, and Mr. Chen Liang - The Board of Supervisors members are Ms. Peng Ling, Ms. Kong Qian, Mr. Chen Liang[3](index=3&type=chunk) [Joint Company Secretaries](index=3&type=section&id=Joint%20Company%20Secretaries) Mr. Liu Siyu and Ms. Yuan Yingxin serve as Joint Company Secretaries - The Joint Company Secretaries are Mr. Liu Siyu, Ms. Yuan Yingxin[3](index=3&type=chunk) [Authorized Representatives](index=3&type=section&id=Authorized%20Representatives) Mr. Kong Jian and Ms. Yuan Yingxin are the Authorized Representatives - The Authorized Representatives are Mr. Kong Jian, Ms. Yuan Yingxin[3](index=3&type=chunk) [Audit Committee](index=3&type=section&id=Audit%20Committee) The Audit Committee is chaired by Ms. Hou Aijun, with Mr. Kong Shuangquan and Mr. Liang Weiye as members - The Audit Committee Chairman is Ms. Hou Aijun, with members Mr. Kong Shuangquan, Mr. Liang Weiye[3](index=3&type=chunk) [Remuneration Committee](index=3&type=section&id=Remuneration%20Committee) The Remuneration Committee is chaired by Mr. Liang Yiye, with Mr. Kong Jian and Mr. Liang Weiye as members - The Remuneration Committee Chairman is Mr. Liang Yiye, with members Mr. Kong Jian, Mr. Liang Weiye[3](index=3&type=chunk) [Nomination Committee](index=3&type=section&id=Nomination%20Committee) The Nomination Committee is chaired by Mr. Kong Jian, with Mr. Liang Yiye and Ms. Hou Aijun as members - The Nomination Committee Chairman is Mr. Kong Jian, with members Mr. Liang Yiye, Ms. Hou Aijun[3](index=3&type=chunk) [Auditor](index=3&type=section&id=Auditor) The company's auditor is Deloitte Touche Tohmatsu - The auditor is Deloitte Touche Tohmatsu[3](index=3&type=chunk) [Legal Advisors](index=3&type=section&id=Legal%20Advisors) The company is advised by Messrs. Chow Chun Hin & Co. on Hong Kong law and Commerce & Finance Law Offices on PRC law - Hong Kong legal advisor is Messrs. Chow Chun Hin & Co., PRC legal advisor is Commerce & Finance Law Offices[3](index=3&type=chunk) [Principal Banks](index=4&type=section&id=Principal%20Banks) The company's principal banks include Agricultural Bank of China Limited Beijing Free Trade Zone Zhangjiawan Design Town Branch and China Construction Bank Corporation (Beijing Desheng Branch) - Principal banks include Agricultural Bank of China and China Construction Bank[4](index=4&type=chunk) [Headquarters and Principal Place of Business in China](index=4&type=section&id=Headquarters%20and%20Principal%20Place%20of%20Business%20in%20China) The company's headquarters and principal place of business in China are located at No. 3 Guangtong Street, Industrial Development Zone, Tongzhou District, Beijing - Headquarters and principal place of business in China are located at No. 3 Guangtong Street, Industrial Development Zone, Tongzhou District, Beijing[4](index=4&type=chunk) [Principal Place of Business in Hong Kong](index=4&type=section&id=Principal%20Place%20of%20Business%20in%20Hong%20Kong) The company's principal place of business in Hong Kong is located at Room 1922, 19/F, Lee Garden One, 33 Hysan Avenue, Causeway Bay, Hong Kong - Principal place of business in Hong Kong is located at Room 1922, 19/F, Lee Garden One, 33 Hysan Avenue, Causeway Bay, Hong Kong[4](index=4&type=chunk) [Registered Office](index=4&type=section&id=Registered%20Office) The company's registered office is located at No. 3 Guangtong Street, Industrial Development Zone, Tongzhou District, Beijing, China - Registered office is located at No. 3 Guangtong Street, Industrial Development Zone, Tongzhou District, Beijing, China[4](index=4&type=chunk) [H Share Registrar](index=4&type=section&id=H%20Share%20Registrar) The H Share Registrar is Tricor Investor Services Limited - The H Share Registrar is Tricor Investor Services Limited[4](index=4&type=chunk) [Stock Code](index=4&type=section&id=Stock%20Code) The company's stock code is 2480 - The stock code is 2480[4](index=4&type=chunk) [Company Website](index=4&type=section&id=Company%20Website) The company's website is www.luzhubiotech.com - The company website is www.luzhubiotech.com[4](index=4&type=chunk) [Listing Date](index=4&type=section&id=Listing%20Date) The company's listing date was May 8, 2023 - The listing date was May 8, 2023[4](index=4&type=chunk) [Financial and Operational Data Summary](index=5&type=section&id=Financial%20and%20Operational%20Data%20Summary) This chapter summarizes the company's operating results and financial position for the six months ended June 30, 2025, showing a significant narrowing of losses but a decrease in net assets compared to the same period in 2024 Operating Results Summary for the Six Months Ended June 30 | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Other income | 4,850 | 9,732 | (50.2) | | Other expenses | (585) | (189) | 209.5 | | Net other gains and losses | 2,405 | 6,255 | (61.6) | | Impairment loss recognized on property, plant and equipment | (5,441) | – | 100.0 | | Administrative expenses | (25,801) | (44,962) | (42.6) | | Research and development expenses | (50,273) | (80,376) | (37.5) | | Finance costs | (2,725) | (398) | 584.7 | | Loss before tax | (77,570) | (109,938) | (29.4) | | Income tax expense | – | – | – | | Loss and total comprehensive expenses for the period | (77,570) | (109,938) | (29.4) | | Basic loss per share (RMB) | (0.39) | (0.54) | (27.8) | | Diluted loss per share (RMB) | (0.39) | (0.54) | (27.8) | Financial Position Summary as of June 30, 2025 | Indicator | As of June 30, 2025 (RMB thousand) | As of December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current assets | 613,642 | 577,587 | | Current assets | 461,433 | 472,876 | | Current liabilities | 97,637 | 98,857 | | Net current assets | 363,796 | 374,019 | | Non-current liabilities | 238,307 | 98,015 | | Net assets | 739,131 | 853,591 | [Company Profile](index=6&type=section&id=Company%20Profile) The company is a biotechnology firm focused on developing innovative human vaccines and therapeutic biologics to prevent and control infectious diseases, and treat cancer and autoimmune diseases - The company is dedicated to developing innovative human vaccines and therapeutic biologics to prevent and control infectious diseases, and treat cancer and autoimmune diseases[7](index=7&type=chunk) - As of June 30, 2025, the product pipeline includes three clinical-stage investigational products (core product LZ901) and six pre-clinical stage investigational products[7](index=7&type=chunk) - As of June 30, 2025, the company holds seven invention patents in seven countries, with two pending applications related to its core product in Europe and the UK[7](index=7&type=chunk) [Management Discussion and Analysis](index=7&type=section&id=Management%20Discussion%20and%20Analysis) This chapter details the company's business development, R&D progress, financial performance, liquidity, and future strategic plans during the reporting period, highlighting LZ901's clinical trial progress and reasons for financial data changes [Business Review](index=7&type=section&id=Business%20Review) The company made significant R&D progress, particularly with core product LZ901's BLA submission in China and Phase I completion in the US, while other pipeline products advanced, emphasizing capabilities in protein engineering, bispecific antibody platforms, and quality assurance [R&D of Investigational Products](index=7&type=section&id=R%26D%20of%20Investigational%20Products) The company has established an innovative precision protein engineering platform, enabling drug development across the entire lifecycle, and possesses an independently developed next-generation bispecific antibody platform, Fabite®, laying the foundation for a diversified product pipeline - Established an innovative precision protein engineering platform, laying the foundation for the development of human vaccines, monoclonal antibodies, and bispecific antibody investigational products[9](index=9&type=chunk) - Independently developed next-generation bispecific antibody platform Fabite®, featuring fully controllable mechanism of action and administration, stable for over three years[9](index=9&type=chunk) - Built a diversified and advanced product pipeline through the Fabite® and mammalian expression technology platforms[10](index=10&type=chunk) [LZ901](index=7&type=section&id=LZ901) LZ901, the world's first recombinant zoster vaccine with a tetrameric molecular structure, has completed Phase III enrollment and BLA submission in China, with commercialization expected in 2026, and completed Phase I clinical site studies in the US, with Phase I completion planned for Q3 2025 - LZ901 is an independently developed recombinant zoster vaccine and core product, the world's first with a tetrameric molecular structure[11](index=11&type=chunk) - Phase III clinical trials initiated in China in September 2023, with enrollment of **26,000** subjects completed in January 2024[12](index=12&type=chunk) - BLA for LZ901 submitted to the NMPA in January 2025, with commercialization in China expected in 2026[12](index=12&type=chunk) - Phase I clinical trial site studies for LZ901 completed in the US in H1 2024, with Phase I completion planned for Q3 2025[13](index=13&type=chunk) [K3](index=8&type=section&id=K3) K3, a recombinant human anti-tumor necrosis factor-α monoclonal antibody injection, is a biosimilar to Humira® that has completed Phase I clinical trials in China, with Phase III trials expected to start as early as H2 2026 - K3 is a recombinant human anti-tumor necrosis factor-α monoclonal antibody injection, a biosimilar to Humira®, used for treating autoimmune diseases[14](index=14&type=chunk) - Phase I clinical trials completed in China in December 2019, with Phase III clinical trials expected to commence as early as H2 2026[14](index=14&type=chunk) [K193](index=8&type=section&id=K193) K193, the world's first CD19/CD3 bispecific antibody with an asymmetric structure, is for treating B-cell leukemia and lymphoma, with Phase I clinical trials initiated in China and expected to complete in 2026 - K193 is the world's first CD19/CD3 bispecific antibody with an asymmetric structure, for treating B-cell leukemia and lymphoma[15](index=15&type=chunk) - Developed based on the Fabite® platform, it exhibits high in vitro and in vivo anti-tumor activity and optimized formulation stability[15](index=15&type=chunk) - Phase I clinical trials initiated in China in December 2019, with completion expected in 2026[15](index=15&type=chunk) [Updates on Other Pre-clinical Stage Investigational Products](index=8&type=section&id=Updates%20on%20Other%20Pre-clinical%20Stage%20Investigational%20Products) As of June 30, 2025, the company has six investigational products in pre-clinical stages, covering recombinant vaccines and bispecific antibodies - As of June 30, 2025, there are six pre-clinical stage investigational products, including recombinant varicella vaccine, recombinant RSV vaccine, recombinant HSV-1 vaccine, recombinant HSV-2 vaccine, K333 bispecific antibody, and K1932 bispecific antibody[16](index=16&type=chunk) Product Pipeline Overview (As of June 30, 2025) | Product Type | Product Pipeline | Indication | Pre-clinical | Phase I | Phase II | Phase III | BLA | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Recombinant Vaccine | LZ901 | Herpes Zoster | China | ✓ | ✓ | ✓ | ✓ | | Recombinant Vaccine | LZ901 | Herpes Zoster | US | ✓ | | | | | Recombinant Vaccine | Recombinant Varicella Vaccine | Varicella | China | | | | | | Recombinant Vaccine | Recombinant RSV Vaccine | RSV-induced Lower Respiratory Tract Disease | China | | | | | | Recombinant Vaccine | Recombinant HSV-1 Vaccine | HSV-1-induced Oral Herpes | China | | | | | | Recombinant Vaccine | Recombinant HSV-2 Vaccine | HSV-2-induced Genital Herpes | China | | | | | | Monoclonal Antibody | K3 | Ankylosing Spondylitis, Rheumatoid Arthritis, Plaque Psoriasis | China | ✓ | | | | | Bispecific Antibody | K193 | Relapsed/Refractory B-cell Lymphoma/Leukemia | China | ✓ | | | | | Bispecific Antibody | K333 | Myeloid Leukemia | China | | | | | | Bispecific Antibody | K1932 | Relapsed/Refractory B-cell Lymphoma | China | | | | | [Research and Development](index=9&type=section&id=Research%20and%20Development) The company's internal R&D team of 18 personnel possesses comprehensive product discovery capabilities from pre-clinical research to manufacturing process development, supporting a diversified product pipeline - The internal R&D team consists of **18** personnel, possessing comprehensive in-house product discovery capabilities[21](index=21&type=chunk) - R&D capabilities cover recombinant protein design and optimization, expansion, culture, and harvesting, supporting a diversified product pipeline[21](index=21&type=chunk) [Manufacturing and Quality Assurance](index=10&type=section&id=Manufacturing%20and%20Quality%20Assurance) The company has R&D and manufacturing facilities in Beijing and Zhuhai, with new facilities under construction in Beijing, and its manufacturing and quality control teams are professionally trained and adhere to GMP standards - Possesses R&D and manufacturing facilities in Beijing and Zhuhai, with new R&D and manufacturing facilities under construction in Beijing, totaling approximately **45,072.87 square meters**[22](index=22&type=chunk) - The manufacturing team comprises **57** personnel, and the quality control team comprises **57** personnel, all professionally trained and adhering to GMP standards[22](index=22&type=chunk) [Future and Outlook](index=10&type=section&id=Future%20and%20Outlook) The company plans to actively advance clinical development of pipeline drugs (especially core product LZ901), rapidly progress other pre-clinical products, formulate domestic and international commercialization strategies, and expand its product pipeline through independent development and collaborations - Actively promote the clinical development of core product LZ901[23](index=23&type=chunk) - Rapidly advance the development of pre-clinical investigational products such as recombinant varicella vaccine, recombinant RSV vaccine, recombinant HSV-1 vaccine, recombinant HSV-2 vaccine, K333, and K1932[23](index=23&type=chunk) - Formulate strategic plans to promote domestic and international commercialization, and expand the product pipeline through independent development and/or collaborations[23](index=23&type=chunk) [Financial Review](index=11&type=section&id=Financial%20Review) For the six months ended June 30, 2025, the company's pre-tax loss decreased by 29.4% year-on-year to RMB 77.6 million, primarily due to significant reductions in administrative and R&D expenses, despite lower other income and net gains, and a substantial increase in finance costs [Other Income](index=12&type=section&id=Other%20Income) Other income decreased by 50.2% year-on-year to RMB 4.9 million, mainly due to a reduction in government grants - Other income decreased by **50.2%** from approximately **RMB 9.7 million** in the same period of 2024 to approximately **RMB 4.9 million** in the same period of 2025[25](index=25&type=chunk) - Primarily due to a reduction in government grants[25](index=25&type=chunk) Components of Other Income | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Sales revenue of VZV vaccine immunogenicity test kits | 1,473 | 650 | | Government grants (property and equipment) | 1,507 | 1,267 | | Government grants (right-of-use assets) | 1,335 | 1,335 | | Government grants (others) | 155 | 4,718 | | Interest income from bank balances and time deposits | 370 | 1,752 | | Interest income from lease deposits | 10 | 10 | | **Total** | **4,850** | **9,732** | [Other Expenses](index=13&type=section&id=Other%20Expenses) Other expenses increased by 209.5% year-on-year to RMB 0.6 million, primarily reflecting increased costs of sold immunoassay kits - Other expenses increased by **209.5%** from approximately **RMB 0.2 million** in the same period of 2024 to approximately **RMB 0.6 million** in the same period of 2025[27](index=27&type=chunk) - Primarily reflecting increased costs of sold immunoassay kits[27](index=27&type=chunk) [Net Other Gains and Losses](index=13&type=section&id=Net%20Other%20Gains%20and%20Losses) Net other gains decreased by 61.6% year-on-year to RMB 2.4 million, mainly due to reduced fair value gains on financial assets at fair value through profit or loss and lower net foreign exchange gains - Net other gains decreased by **61.6%** from approximately **RMB 6.3 million** in the same period of 2024 to approximately **RMB 2.4 million** in the same period of 2025[28](index=28&type=chunk) - Primarily due to reduced fair value gains on financial assets at fair value through profit or loss and lower net foreign exchange gains[28](index=28&type=chunk) Components of Net Other Gains and Losses | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Fair value gains on financial assets at fair value through profit or loss | 3,531 | 5,309 | | Net foreign exchange (losses) gains | (1,126) | 975 | | Loss on early termination of lease | – | (29) | | **Total** | **2,405** | **6,255** | [Administrative Expenses](index=13&type=section&id=Administrative%20Expenses) Administrative expenses decreased by 42.6% year-on-year to RMB 25.8 million, primarily due to the absence of share-based payment amortization expenses in 2025 - Administrative expenses decreased by **42.6%** from approximately **RMB 45.0 million** in the same period of 2024 to approximately **RMB 25.8 million** in the same period of 2025[30](index=30&type=chunk) - Primarily due to the absence of share-based payment amortization expenses in 2025[30](index=30&type=chunk) [Research and Development Expenses](index=13&type=section&id=Research%20and%20Development%20Expenses) R&D expenses decreased by 37.5% year-on-year to RMB 50.3 million, mainly due to reduced expenses from the LZ901 Phase III clinical trial conducted in China - R&D expenses decreased by **37.5%** from approximately **RMB 80.4 million** in the same period of 2024 to approximately **RMB 50.3 million** in the same period of 2025[31](index=31&type=chunk) - Primarily due to reduced expenses from the LZ901 Phase III clinical trial conducted in China[31](index=31&type=chunk) [Finance Costs](index=14&type=section&id=Finance%20Costs) Finance costs significantly increased by 584.7% year-on-year to RMB 2.7 million, primarily due to the company obtaining additional bank loans - Finance costs increased by **584.7%** from approximately **RMB 0.4 million** in the same period of 2024 to approximately **RMB 2.7 million** in the same period of 2025[32](index=32&type=chunk) - Primarily due to the Group obtaining additional bank loans[32](index=32&type=chunk) [Loss Before Tax](index=14&type=section&id=Loss%20Before%20Tax) Loss before tax decreased by 29.4% year-on-year to RMB 77.6 million, primarily influenced by the combined effect of the aforementioned expense changes - Loss before tax decreased by **29.4%** from approximately **RMB 109.9 million** in the same period of 2024 to approximately **RMB 77.6 million** in the same period of 2025[33](index=33&type=chunk) [Income Tax Expense](index=14&type=section&id=Income%20Tax%20Expense) No income tax expense was incurred as the company recorded a loss during the reporting period - No income tax expense was incurred as the Group recorded a loss for the six months ended June 30, 2024 and 2025[34](index=34&type=chunk) [Liquidity and Capital Resources](index=14&type=section&id=Liquidity%20and%20Capital%20Resources) The company experienced a decrease in cash balance and a significant increase in bank borrowings, leading to a higher gearing ratio, while capital expenditures decreased significantly, with no material contingent liabilities or foreign exchange hedging transactions [Bank Balances and Cash](index=14&type=section&id=Bank%20Balances%20and%20Cash) Bank balances and cash decreased by approximately RMB 39.9 million to RMB 100.2 million, primarily due to share repurchases - Bank balances and cash decreased by approximately **RMB 39.9 million** to approximately **RMB 100.2 million** as of June 30, 2025[35](index=35&type=chunk) - Primarily due to the Company's share repurchases during the six months ended June 30, 2025[35](index=35&type=chunk) - Bank borrowings increased to approximately **RMB 207.3 million** (December 31, 2024: approximately RMB 54.9 million), of which approximately **RMB 11.5 million** is repayable within one year[35](index=35&type=chunk) [Pledged Assets](index=14&type=section&id=Pledged%20Assets) As of June 30, 2025, the company's properties, including offices, laboratories, production bases, and construction in progress, have been pledged as collateral for bank borrowings and bank financing - Properties (including offices, laboratories, production bases, and construction in progress) have been pledged as collateral for bank borrowings and bank financing[37](index=37&type=chunk) [Contingent Liabilities](index=15&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the company had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities[38](index=38&type=chunk) [Gearing Ratio](index=15&type=section&id=Gearing%20Ratio) As of June 30, 2025, the gearing ratio was 31.2%, an increase from 18.7% as of December 31, 2024 - As of June 30, 2025, the gearing ratio was **31.2%** (December 31, 2024: **18.7%**)[39](index=39&type=chunk) [Capital Commitments](index=15&type=section&id=Capital%20Commitments) Capital commitments decreased from approximately RMB 38.3 million as of December 31, 2024, to approximately RMB 7.4 million as of June 30, 2025, primarily due to the completion of certain construction projects - Capital commitments decreased from approximately **RMB 38.3 million** as of December 31, 2024, to approximately **RMB 7.4 million** as of June 30, 2025[40](index=40&type=chunk) - Primarily due to the completion of certain construction projects during the six months ended June 30, 2025[40](index=40&type=chunk) [Foreign Exchange](index=15&type=section&id=Foreign%20Exchange) The company primarily operates in China, facing foreign exchange fluctuation risks between RMB and other currencies (mainly HKD), but has not entered into any currency hedging transactions - The Group primarily operates in the PRC and is exposed to foreign exchange risk arising from various currencies (mainly related to HKD)[41](index=41&type=chunk) - The Group did not enter into any currency hedging transactions during the six months ended June 30, 2025[41](index=41&type=chunk) [Material Investments, Acquisitions and Disposals](index=15&type=section&id=Material%20Investments%2C%20Acquisitions%20and%20Disposals) For the six months ended June 30, 2025, the company had no material investments, acquisitions, or disposals of subsidiaries, associates, and joint ventures - For the six months ended June 30, 2025, the Group had no material investments, acquisitions, or disposals of subsidiaries, associates, and joint ventures[42](index=42&type=chunk) [Future Plans for Material Investments or Capital Assets](index=15&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) As of June 30, 2025, the company had no specific plans for material capital expenditures, investments, or capital assets, and any future plans will be announced in accordance with the Listing Rules - As of June 30, 2025, the Group had no specific plans for material capital expenditures, investments, or capital assets[43](index=43&type=chunk) [Interim Dividend](index=16&type=section&id=Interim%20Dividend) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[44](index=44&type=chunk) [Use of Net Proceeds from Global Offering](index=16&type=section&id=Use%20of%20Net%20Proceeds%20from%20Global%20Offering) The net proceeds from the company's H-share global offering, approximately HKD 241.6 million, are primarily allocated for clinical development, manufacturing, and commercialization of core product LZ901, clinical development of K3, and construction of Zhuhai Phase II commercial production facilities, expected to be fully utilized by the end of 2027 - The total net proceeds from the global offering were approximately **HKD 241.6 million**[45](index=45&type=chunk) - The net proceeds are expected to be fully utilized by the end of 2027[47](index=47&type=chunk) Use of Net Proceeds from Global Offering (As of June 30, 2025) | Use of Proceeds | Allocation of Net Proceeds from Global Offering (HKD million) | Percentage of Total Net Proceeds (%) | Unutilized Amount as of June 30, 2025 (HKD million) | Expected Timeline for Full Utilization of Remaining Net Proceeds from Global Offering | | :--- | :--- | :--- | :--- | :--- | | For clinical development, manufacturing, and commercialization of core product LZ901 | 140.7 | 58.2 | 46.0 | By end of 2026 | | For clinical development and manufacturing of K3 | 53.4 | 22.1 | 53.4 | By end of 2027 | | For construction of Zhuhai Phase II commercial production facilities | 38.8 | 16.1 | 0.1 | By end of 2026 | | For working capital and other general corporate purposes | 8.7 | 3.6 | 5.5 | By end of 2026 | | **Total** | **241.6** | **100.0** | **105.0** | | [Employees and Remuneration Policy](index=17&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the company employed 197 full-time employees, with 67.5% engaged in R&D, and maintains an evaluation system, competitive remuneration, training, and social insurance and housing provident fund contributions for PRC employees - As of June 30, 2025, the Group employed **197** full-time employees[48](index=48&type=chunk) Number of Employees by Function (As of June 30, 2025) | Function | Number of Employees | Percentage (%) | | :--- | :--- | :--- | | Management and General Administration (including Finance Department) | 37 | 18.8 | | Research and Development (including Manufacturing Department and Quality Control Department) | 133 | 67.5 | | Medical Affairs and Clinical Operations | 9 | 4.6 | | Engineering | 18 | 9.1 | | **Total** | **197** | **100.0** | - The company has an evaluation system, provides competitive salaries and bonuses, and emphasizes employee training[48](index=48&type=chunk) [Financing and Treasury Policy](index=17&type=section&id=Financing%20and%20Treasury%20Policy) The company adopts a sound and conservative financing and treasury policy aimed at maintaining optimal financial health, the most economical financing costs, and minimal financial risk, with regular reviews of funding needs - Adopts a sound and conservative financing and treasury policy aimed at maintaining optimal financial health, the most economical financing costs, and minimal financial risk[49](index=49&type=chunk) - Cash and cash equivalents are typically deposited with financial institutions with low credit risk, and funding needs are regularly reviewed[49](index=49&type=chunk) [Other Information](index=15&type=section&id=Other%20Information) This chapter covers various non-financial information for the reporting period, including equity disclosures for directors and major shareholders, employee incentive schemes, corporate governance compliance, securities transactions, litigation, share repurchases, and changes in board members [Interests and Short Positions of Directors, Supervisors and Chief Executive in Shares, Underlying Shares or Debentures](index=18&type=section&id=Interests%20and%20Short%20Positions%20of%20Directors%2C%20Supervisors%20and%20Chief%20Executive%20in%20Shares%2C%20Underlying%20Shares%20or%20Debentures) As of June 30, 2025, the company's directors, supervisors, and chief executive held long positions in the company's shares and underlying shares, with Mr. Kong Jian and Ms. Zhang Yanping holding a significant proportion as controlling shareholders [Interests in Shares and Underlying Shares](index=18&type=section&id=Interests%20in%20Shares%20and%20Underlying%20Shares) Discloses beneficial interests, spousal interests, and controlled corporation interests of directors and supervisors in the company's H-shares, with Mr. Kong Jian and Ms. Zhang Yanping collectively holding a significant proportion of the company's total issued share capital Interests of Directors/Supervisors in H-shares (As of June 30, 2025) | Name of Director/Supervisor | Nature of Interest | Number of H-shares | Approximate Percentage of Total Issued Share Capital (H-shares) of the Company | | :--- | :--- | :--- | :--- | | Mr. Kong | Beneficial Interest | 58,294,513 | 28.79% | | Mr. Kong | Spouse's Interest | 20,200,000 | 9.98% | | Mr. Kong | Interest in Controlled Corporation | 15,526,700 | 7.67% | | Ms. Zhang | Beneficial Interest | 20,200,000 | 9.98% | | Ms. Zhang | Spouse's Interest | 73,821,213 | 36.46% | | Ms. Jiang | Beneficial Interest | 4,000,000 | 1.98% | | Mr. Ma Biao | Interest in Controlled Corporation | 51,721,196 | 25.55% | | Ms. Peng Ling | Interest in Controlled Corporation | 12,307,500 | 6.08% | | Ms. Kong Qian | Beneficial Interest | 550,000 | 0.27% | | Mr. Chen Liang | Beneficial Interest | 400 | 0.0002% | - Mr. Kong and Ms. Zhang are spouses and are deemed to be interested in each other's shares under the SFO[50](index=50&type=chunk) [Interests in Associated Corporations](index=19&type=section&id=Interests%20in%20Associated%20Corporations) As of June 30, 2025, no director, supervisor, or chief executive held any interests or short positions in the shares, underlying shares, or debentures of any associated corporation of the company - As of June 30, 2025, no director, supervisor, or chief executive of the Company held any interests or short positions in the shares, underlying shares, or debentures of any associated corporation of the Company[51](index=51&type=chunk) [Interests and Short Positions of Substantial Shareholders in Shares and Underlying Shares](index=20&type=section&id=Interests%20and%20Short%20Positions%20of%20Substantial%20Shareholders%20in%20Shares%20and%20Underlying%20Shares) Discloses interests and short positions of substantial shareholders, other than directors, supervisors, and the chief executive, in the company's shares and underlying shares, including Hengqin Luzhu Limited Partnership, Beijing E-Town, Yitang Saiying, Beijing Saisheng, and CCB International Capital Management (Tianjin) Co., Ltd Interests of Substantial Shareholders in H-shares (As of June 30, 2025) | Name of Shareholder | Nature of Interest | Number of H-shares | Approximate Percentage of Total Issued Share Capital (H-shares) of the Company | | :--- | :--- | :--- | :--- | | Hengqin Luzhu Limited Partnership | Beneficial Interest | 12,307,500 | 6.08% | | Beijing Luzhu Kangrui | Interest in Controlled Corporation | 12,307,500 | 6.08% | | Beijing E-Town | Beneficial Interest | 19,645,000 | 9.70% | | Beijing E-Town Phase II | Beneficial Interest | 18,324,696 | 9.05% | | Yitang Saiying | Interest in Controlled Corporation | 37,969,696 | 18.76% | | Saiding Fangde | Interest in Controlled Corporation | 37,969,696 | 18.76% | | Saideruibo | Interest in Controlled Corporation | 37,969,696 | 18.76% | | Mr. Ma Jianan | Interest in Controlled Corporation | 37,969,696 | 18.76% | | Beijing Saisheng | Beneficial Interest | 13,751,500 | 6.79% | | CCB International Capital Management (Tianjin) Co., Ltd. | Beneficial Interest | 11,367,675 | 5.62% | | CCB International (China) Co., Ltd. | Interest in Controlled Corporation | 11,367,675 | 5.62% | | CCB International (Holdings) Limited | Interest in Controlled Corporation | 11,367,675 | 5.62% | | CCB Financial Holdings Limited | Interest in Controlled Corporation | 11,367,675 | 5.62% | | CCB International Group Holdings Limited | Interest in Controlled Corporation | 11,367,675 | 5.62% | | China Construction Bank | Interest in Controlled Corporation | 11,367,675 | 5.62% | | Central Huijin Investment Ltd. | Interest in Controlled Corporation | 11,367,675 | 5.62% | | Herui Venture Capital Fund Management (Shenzhen) Co., Ltd. | Interest in Controlled Corporation | 10,000,744 | 4.94% | | Mr. Chen Ruolin | Interest in Controlled Corporation | 10,000,744 | 4.94% | | Mr. Wang Zhixian | Interest in Controlled Corporation | 10,000,744 | 4.94% | [Employee Incentive Schemes](index=22&type=section&id=Employee%20Incentive%20Schemes) The company has an employee incentive scheme adopted prior to listing, granting interests through Hengqin Luzhu Limited Partnership, and the 2025 Share Award Scheme became effective in June 2025 to incentivize and retain talent, though no awards have been granted as of the reporting period end [Pre-IPO Employee Incentive Scheme](index=22&type=section&id=Pre-IPO%20Employee%20Incentive%20Scheme) The company adopted an employee incentive scheme on December 15, 2021, granting interests through Hengqin Luzhu Limited Partnership to eligible participants, with all interests granted prior to listing - The employee incentive scheme was adopted on December 15, 2021, prior to listing, and does not involve the grant of new shares or options to subscribe for new shares[57](index=57&type=chunk) - Eligible participants were granted interests in Hengqin Luzhu Limited Partnership, the Group's employee incentive platform, with all interests granted prior to listing[57](index=57&type=chunk) [2025 Share Award Scheme](index=22&type=section&id=2025%20Share%20Award%20Scheme) The 2025 Share Award Scheme became effective on June 13, 2025, aiming to provide ownership interests to selected participants and incentivize their contributions, but no awards were granted during the six months ended June 30, 2025, with 19,922,983 H-shares remaining available for grant - The 2025 Share Award Scheme became effective on June 13, 2025, aiming to incentivize selected participants and attract and retain outstanding employees[58](index=58&type=chunk) - No awards were granted under the 2025 Share Award Scheme during the six months ended June 30, 2025[58](index=58&type=chunk) - As of June 30, 2025, the number of shares available for grant under the 2025 Share Award Scheme remained **19,922,983 H-shares**[58](index=58&type=chunk) [Compliance with Corporate Governance Code](index=23&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company is committed to maintaining high standards of corporate governance and has adopted the Corporate Governance Code; although the roles of Chairman and General Manager are combined by Mr. Kong Jian, deviating from the code, the Board believes this structure does not affect the balance of power and will continue to review its effectiveness - The Company has adopted the Corporate Governance Code as its own corporate governance code and is committed to maintaining high standards of corporate governance[59](index=59&type=chunk) - Mr. Kong Jian holds both the positions of Chairman of the Board and General Manager, which deviates from code provision C.2.1, but the Board believes this structure does not affect the balance of power and responsibilities[59](index=59&type=chunk) - The Board will continue to review the effectiveness of the Group's corporate governance structure from time to time[59](index=59&type=chunk) [Compliance with Model Code for Securities Transactions](index=23&type=section&id=Compliance%20with%20Model%20Code%20for%20Securities%20Transactions) The company has adopted the Model Code set out in Appendix C3 of the Listing Rules and confirms that all directors and supervisors have complied with it as of June 30, 2025 - The Company has adopted the Model Code set out in Appendix C3 of the Listing Rules to regulate all dealings in the Company's securities by directors, supervisors, and relevant employees[61](index=61&type=chunk) - All directors and supervisors have confirmed their compliance with the applicable standards set out in the Model Code up to June 30, 2025[61](index=61&type=chunk) [Material Litigation and Arbitration](index=23&type=section&id=Material%20Litigation%20and%20Arbitration) For the six months ended June 30, 2025, the company had no material litigation or arbitration - For the six months ended June 30, 2025, the Group had no material litigation or arbitration[62](index=62&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=24&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) The company repurchased 1,759,200 H-shares for approximately HKD 39.7 million during the reporting period, holding them as treasury shares potentially for the 2025 Share Award Scheme, with further repurchases occurring after the reporting period - During the reporting period, the Company repurchased a total of **1,759,200 H-shares** for a total consideration of approximately **HKD 39.7 million** (approximately **RMB 36.9 million**)[64](index=64&type=chunk) - As of June 30, 2025, the Company held a total of **3,219,200 treasury H-shares**, which may be used to fund the 2025 Share Award Scheme[64](index=64&type=chunk) - After June 30, 2025, and up to the latest practicable date, the Company further repurchased a total of **316,600 H-shares** in July 2025 for a total consideration of approximately **HKD 6.8 million**[64](index=64&type=chunk) [Audit Committee and Review of Financial Report](index=24&type=section&id=Audit%20Committee%20and%20Review%20of%20Financial%20Report) The Audit Committee, comprising three members with Ms. Hou Aijun as Chair, oversees financial reporting, internal controls, and risk management, and has reviewed the unaudited interim consolidated results for the six months ended June 30, 2025, confirming compliance with accounting principles and disclosure requirements - The Audit Committee comprises three members, with Ms. Hou Aijun as Chairman, and Mr. Liang Weiye possessing appropriate accounting or relevant financial management expertise[66](index=66&type=chunk) - The Audit Committee has reviewed the Company's unaudited interim consolidated results for the six months ended June 30, 2025, and confirmed compliance with applicable accounting principles, standards, and requirements[66](index=66&type=chunk) - The interim results are unaudited but have been reviewed by the independent auditor, Deloitte Touche Tohmatsu, in accordance with Hong Kong Standard on Review Engagements 2410[66](index=66&type=chunk) [Changes in Information of Directors and Supervisors](index=25&type=section&id=Changes%20in%20Information%20of%20Directors%20and%20Supervisors) At the Annual General Meeting on June 12, 2025, shareholders approved the election and re-election of members for the Fifth Session of the Board of Directors and Board of Supervisors, with Ms. Hou Aijun designated as the Chief Independent Non-executive Director - Shareholders approved the election and re-election of directors for the Fifth Session of the Board of Directors and supervisors for the Board of Supervisors[67](index=67&type=chunk) - The Fifth Session of the Board of Directors includes Executive Directors Mr. Kong, Ms. Zhang, and Ms. Peng Ling; Non-executive Directors Mr. Ma Biao and Mr. Kong Shuangquan; and Independent Non-executive Directors Ms. Hou Aijun, Mr. Liang Weiye, and Mr. Liang Yiye[67](index=67&type=chunk) - Ms. Hou Aijun was also designated as the Chief Independent Non-executive Director, effective from June 27, 2025[68](index=68&type=chunk) [Rights of Directors and Supervisors to Purchase Shares or Debentures](index=25&type=section&id=Rights%20of%20Directors%20and%20Supervisors%20to%20Purchase%20Shares%20or%20Debentures) During or at the end of the six months ended June 30, 2025, neither the company nor any of its subsidiaries entered into any arrangements enabling directors or supervisors to benefit from purchasing shares or debentures of the company or any other body corporate, and no such rights were granted to or exercised by any director, supervisor, their spouse, or children under 18 - During or at the end of the six months ended June 30, 2025, no arrangements were entered into enabling directors or supervisors to benefit from purchasing shares or debentures of the Company or any other body corporate[69](index=69&type=chunk) [Events After Reporting Period](index=25&type=section&id=Events%20After%20Reporting%20Period) Other than those disclosed in this report, no material events affecting the company occurred after June 30, 2025, up to the date of this report - Other than those disclosed in this report, no material events affecting the Group occurred after June 30, 2025, up to the date of this report[70](index=70&type=chunk) [Review Report on Condensed Consolidated Financial Statements](index=25&type=section&id=Review%20Report%20on%20Condensed%20Consolidated%20Financial%20Statements) Deloitte Touche Tohmatsu reviewed the company's condensed consolidated financial statements for the six months ended June 30, 2025, concluding that they found no matters indicating the financial statements were not prepared in all material respects in accordance with International Accounting Standard 34 - Deloitte Touche Tohmatsu has reviewed the Company's condensed consolidated financial statements, conducted in accordance with Hong Kong Standard on Review Engagements 2410[71](index=71&type=chunk)[72](index=72&type=chunk) - The review concluded that nothing has come to our attention that causes us to believe the condensed consolidated financial statements are not prepared, in all material respects, in accordance with International Accounting Standard 34[73](index=73&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=26&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement presents the company's condensed consolidated profit or loss and other comprehensive income for the six months ended June 30, 2025, showing a total loss and comprehensive expenses of RMB 77,570 thousand, a narrowing from RMB 109,938 thousand in the prior year Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Other income | 4,850 | 9,732 | | Other expenses | (585) | (189) | | Net other gains and losses | 2,405 | 6,255 | | Impairment loss recognized on property, plant and equipment | (5,441) | – | | Administrative expenses | (25,801) | (44,962) | | Research and development expenses | (50,273) | (80,376) | | Finance costs | (2,725) | (398) | | Loss before tax | (77,570) | (109,938) | | Income tax expense | – | – | | Loss and total comprehensive expenses for the period | (77,570) | (109,938) | | Basic loss per share (RMB) | (0.39) | (0.54) | | Diluted loss per share (RMB) | (0.39) | (0.54) | [Condensed Consolidated Statement of Financial Position](index=27&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement presents the company's condensed consolidated financial position as of June 30, 2025, showing total assets of RMB 1,075,075 thousand and net assets of RMB 739,131 thousand, a decrease from December 31, 2024 Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Indicator | As of June 30, 2025 (RMB thousand) | As of December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Non-current assets** | | | | Right-of-use assets | 97,135 | 99,504 | | Property, plant and equipment | 502,813 | 457,588 | | Intangible assets | 8,615 | 8,329 | | Prepayments, deposits and other receivables | 3,074 | 12,166 | | Investment in an associate | 1,000 | – | | Time deposits | 1,005 | – | | **Total non-current assets** | **613,642** | **577,587** | | **Current assets** | | | | Materials | 4,398 | 5,735 | | Prepayments, deposits and other receivables | 15,640 | 13,461 | | Financial assets at fair value through profit or loss | 342,176 | 313,554 | | Cash and cash equivalents | 99,219 | 140,126 | | **Total current assets** | **461,433** | **472,876** | | **Current liabilities** | | | | Prepayments received and other payables | 86,168 | 97,037 | | Bank borrowings | 11,469 | 1,820 | | **Total current liabilities** | **97,637** | **98,857** | | **Net current assets** | **363,796** | **374,019** | | **Total assets less current liabilities** | **977,438** | **951,606** | | **Non-current liabilities** | | | | Lease liabilities | 12,992 | 12,619 | | Deferred government grants | 29,460 | 32,302 | | Bank borrowings | 195,855 | 53,094 | | **Total non-current liabilities** | **238,307** | **98,015** | | **Net assets** | **739,131** | **853,591** | | **Capital and reserves** | | | | Share capital | 202,450 | 202,450 | | Reserves | 536,681 | 651,141 | | **Total equity** | **739,131** | **853,591** | [Condensed Consolidated Statement of Changes in Equity](index=28&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This statement presents the company's condensed consolidated changes in equity for the six months ended June 30, 2025, showing a decrease in total equity from RMB 853,591 thousand to RMB 739,131 thousand, primarily due to loss for the period and share repurchases Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30) | Item | Share Capital (RMB thousand) | Share Premium (RMB thousand) | Treasury Shares (RMB thousand) | Share-based Payment Reserve (RMB thousand) | Accumulated Losses (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | As of January 1, 2025 (audited) | 202,450 | 2,621,518 | (32,305) | – | (1,938,072) | 853,591 | | Loss and total comprehensive expenses for the period | – | – | – | – | (77,570) | (77,570) | | Repurchase of shares | – | – | (36,890) | – | – | (36,890) | | As of June 30, 2025 (unaudited) | 202,450 | 2,621,518 | (69,195) | – | (2,015,642) | 739,131 | | As of January 1, 2024 (audited) | 202,450 | 2,448,245 | – | 139,770 | (1,769,837) | 1,020,628 | | Loss and total comprehensive expenses for the period | – | – | – | – | (109,938) | (109,938) | | Equity-settled share-based payments recognized | – | – | – | 33,503 | – | 33,503 | | Vested shares granted | – | 173,273 | – | (173,273) | – | – | | As of June 30, 2024 (unaudited) | 202,450 | 2,621,518 | – | – | (1,879,775) | 944,193 | [Condensed Consolidated Statement of Cash Flows](index=29&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This statement presents the company's condensed consolidated cash flows for the six months ended June 30, 2025, showing a net decrease in cash and cash equivalents of RMB 39,781 thousand, primarily due to net cash used in operating and investing activities Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net cash used in operating activities | (75,285) | (44,955) | | Net cash used in investing activities | (77,024) | (35,742) | | Net cash from financing activities | 112,528 | 9,522 | | Net decrease in cash and cash equivalents | (39,781) | (71,175) | | Cash and cash equivalents at beginning of period | 140,126 | 257,891 | | Effect of foreign exchange rate changes | (1,126) | 975 | | Cash and cash equivalents at end of period | 99,219 | 187,691 | [Notes to the Condensed Consolidated Financial Statements](index=30&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This chapter provides detailed notes to the condensed consolidated financial statements, explaining the basis of preparation, significant accounting policies, components and reasons for changes in various financial data, as well as important information on related party transactions and capital commitments [1. General Information](index=31&type=section&id=1.%20General%20Information) The company is primarily engaged in the research, development, and production of vaccines and therapeutic biologics in China, with RMB as its functional currency - The Group is principally engaged in the research, development, and production of vaccines and therapeutic biologics in the People's Republic of China[81](index=81&type=chunk) - The condensed consolidated financial statements are presented in RMB, which is also the Company's functional currency[81](index=81&type=chunk) [2. Basis of Preparation](index=31&type=section&id=2.%20Basis%20of%20Preparation) The condensed consolidated financial statements are 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 - The condensed consolidated financial statements are 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[82](index=82&type=chunk) [3. Significant Accounting Policies](index=31&type=section&id=3.%20Significant%20Accounting%20Policies) The condensed consolidated financial statements are prepared on a historical cost basis, except for certain financial instruments measured at fair value, with accounting policies consistent with the 2024 annual consolidated financial statements, with minor additions/changes due to the application of amendments to IFRS accounting standards - The condensed consolidated financial statements are prepared on a historical cost basis, except for certain financial instruments measured at fair value[83](index=83&type=chunk) - The accounting policies and methods of computation are the same as those presented in the annual consolidated financial statements for the year ended December 31, 2024, except for additions/changes to accounting policies due to the application of amendments to IFRS accounting standards[83](index=83&type=chunk) - The application of amendments to IFRS accounting standards had no significant impact on the financial position and performance for this interim period and prior periods[84](index=84&type=chunk) [4. Segment Information](index=32&type=section&id=4.%20Segment%20Information) The company has only one operating and reportable segment, and all non-current assets (excluding financial instruments) are located in mainland China, thus no geographical information analysis is presented - The Group has only one operating and reportable segment[85](index=85&type=chunk) - The Group did not record any revenue for the six months ended June 30, 2025[85](index=85&type=chunk) - As of June 30, 2025, all of the Group's non-current assets (excluding financial instruments) are located in mainland China[85](index=85&type=chunk) [5. Other Income](index=32&type=section&id=5.%20Other%20Income) Other income decreased by 50.2% from approximately RMB 9.7 million in the same period of 2024 to approximately RMB 4.9 million in the same period of 2025, primarily due to a reduction in government grants Components of Other Income | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Sales revenue of VZV vaccine immunogenicity test kits | 1,473 | 650 | | Government grants related to property and equipment | 1,507 | 1,267 | | Government grants related to right-of-use assets | 1,335 | 1,335 | | Government grants (others) | 155 | 4,718 | | Interest income from bank balances and time deposits | 370 | 1,752 | | Interest income from lease deposits | 10 | 10 | | **Total** | **4,850** | **9,732** | - The decrease in other income was primarily due to a reduction in government grants[86](index=86&type=chunk) [6. Net Other Gains and Losses](index=33&type=section&id=6.%20Net%20Other%20Gains%20and%20Losses) Net other gains decreased by 61.6% from approximately RMB 6.3 million in the same period of 2024 to approximately RMB 2.4 million in the same period of 2025, primarily due to reduced fair value gains on financial assets at fair value through profit or loss and lower net foreign exchange gains Components of Net Other Gains and Losses | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Fair value gains on financial assets at fair value through profit or loss | 3,531 | 5,309 | | Net foreign exchange (losses) gains | (1,126) | 975 | | Loss on early termination of lease | – | (29) | | **Total** | **2,405** | **6,255** | - The decrease in net other gains was primarily due to reduced fair value gains on financial assets and lower net foreign exchange gains[87](index=87&type=chunk) [7. Finance Costs](index=33&type=section&id=7.%20Finance%20Costs) Finance costs increased significantly by 584.7% from approximately RMB 0.4 million in the same period of 2024 to approximately RMB 2.7 million in the same period of 2025, primarily due to increased interest on bank borrowings Components of Finance Costs | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest on bank borrowings | 2,814 | 135 | | Interest on lease liabilities | 373 | 356 | | Total borrowing costs | 3,187 | 491 | | Less: Amount capitalized in construction in progress | (462) | (93) | | **Total** | **2,725** | **398** | - The significant increase in finance costs was primarily due to increased interest on bank borrowings[88](index=88&type=chunk) [8. Income Tax Expense](index=34&type=section&id=8.%20Income%20Tax%20Expense) No income tax expense was incurred as the company generated tax losses during the reporting period; as of June 30, 2025, estimated unused tax losses were approximately RMB 789,760 thousand - No provision for PRC income tax was made as the Company and its PRC subsidiaries generated tax losses during both periods[89](index=89&type=chunk) - As of June 30, 2025, the Group's estimated unused tax losses were approximately **RMB 789,760 thousand**[89](index=89&type=chunk) - Deferred tax assets were recognized for approximately **RMB 16,911 thousand** of these losses, with the remaining approximately **RMB 772,849 thousand** unrecognized[89](index=89&type=chunk) [9. Loss for the Period](index=35&type=section&id=9.%20Loss%20for%20the%20Period) This note details the expenses contributing to the loss for the period, including staff costs, depreciation and amortization, impairment losses on property, plant and equipment, and material and subcontracting costs for R&D activities Loss for the Period is Stated After Charging (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Total staff costs | 17,358 | 48,752 | | Depreciation of right-of-use assets | 2,369 | 2,401 | | Depreciation of property, plant and equipment | 11,645 | 10,498 | | Amortization of intangible assets | 123 | 123 | | Less: Capitalized in construction in progress | (429) | (643) | | Total depreciation and amortization | 13,708 | 12,379 | | Impairment loss recognized on property, plant and equipment | 5,441 | – | | Short-term lease expenses | 16 | 32 | | Material costs included in R&D expenses | 3,448 | 3,729 | | Subcontracting costs included in R&D expenses | 28,774 | 51,290 | - Total staff costs decreased from **RMB 48,752 thousand** in 2024 to **RMB 17,358 thousand** in 2025, primarily due to no equity-settled share-based payments in 2025[91](index=91&type=chunk) - Impairment loss on property, plant and equipment of **RMB 5,441 thousand** was recognized[91](index=91&type=chunk) [10. Dividends](index=35&type=section&id=10.%20Dividends) No dividends were paid, declared, or proposed during the interim period - No dividends were paid, declared, or proposed during the interim period[92](index=92&type=chunk) [11. Loss Per Share](index=36&type=section&id=11.%20Loss%20Per%20Share) Basic and diluted loss per share attributable to owners of the company was RMB (0.39), a narrowing from RMB (0.54) in the prior year Loss Per Share Calculation (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Loss for the period attributable to owners of the Company | (77,570) | (109,938) | | Weighted average number of ordinary shares for basic and diluted loss per share (thousand shares) | 200,406 | 202,450 | | Basic loss per share (RMB) | (0.39) | (0.54) | | Diluted loss per share (RMB) | (0.39) | (0.54) | [12. Property, Plant and Equipment](index=36&type=section&id=12.%20Property%2C%20Plant%20and%20Equipment) During this interim period, the company's construction in progress in Beijing and Zhuhai increased by RMB 54,164 thousand and RMB 7,924 thousand, respectively, while an impairment loss of RMB 5,441 thousand was recognized due to equipment upgrades and replacements - During this interim period, construction in progress for the Group's R&D and commercial production facilities in Beijing increased by **RMB 54,164 thousand**[94](index=94&type=chunk) - Construction in progress for commercial production facilities in Zhuhai increased by **RMB 7,924 thousand**[94](index=94&type=chunk) - The Group recognized an impairment loss of **RMB 5,441 thousand** on property, plant and equipment during this period, due to the recoverable amount of these assets being lower than their carrying amount as a result of equipment upgrades and replacements[94](index=94&type=chunk) [13. Prepayments, Deposits and Other Receivables](index=37&type=section&id=13.%20Prepayments%2C%20Deposits%20and%20Other%20Receivables) As of June 30, 2025, total prepayments, deposits, and other receivables amounted to RMB 18,714 thousand, a decrease from RMB 25,627 thousand as of December 31, 2024 Components of Prepayments, Deposits and Other Receivables | Item | As of June 30, 2025 (RMB thousand) | As of December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Recoverable VAT | 7,905 | 5,627 | | Prepayments for purchase of property, plant and equipment | 2,659 | 11,815 | | Prepayments to suppliers and service providers | 5,452 | 6,629 | | Lease deposits | 361 | 351 | | Receivables for test kits | 733 | - | | Others | 1,604 | 1,205 | | **Total** | **18,714** | **25,627** | | Non-current | 3,074 | 12,166 | | Current | 15,640 | 13,461 | [14. Investment in an Associate](index=38&type=section&id=14.%20Investment%20in%20an%20Associate) During this period, the company invested RMB 1,000 thousand in Beijing Rumeng Biotechnology Co., Ltd., holding a 34% ownership and able to exercise significant influence, thus accounted for using the equity method - During this period, the Group invested **RMB 1,000,000** in Rumeng[96](index=96&type=chunk) - The Group holds a **34%** ownership interest in this entity and is able to exercise significant influence over it, thus the investment in this entity is accounted for using the equity method[96](index=96&type=chunk) Investment in an Associate (As of June 30, 2025) | Item | As of June 30, 2025 (RMB thousand) | As of December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of investment in an associate | 1,000 | – | [15. Prepayments Received and Other Payables](index=38&type=section&id=15.%20Prepayments%20Received%20and%20Other%20Payables) As of June 30, 2025, total prepayments received and other payables amounted to RMB 86,168 thousand, a decrease from RMB 97,037 thousand as of December 31, 2024 Components of Prepayments Received and Other Payables | Item | As of June 30, 2025 (RMB thousand) | As of December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Payables for acquisition of property, plant and equipment | 51,725 | 48,437 | | Payables for R&D activities | 29,911 | 41,808 | | Payables for intangible assets | 520 | 1,327 | | Accrued salaries and other allowances | 2,400 | 5,091 | | Other taxes payable | 1,270 | 154 | | Others | 342 | 220 | | **Total** | **86,168** | **97,037** | - Payables are primarily denominated in RMB, with some in USD and HKD[97](index=97&type=chunk) [16. Bank Borrowings](index=39&type=section&id=16.%20Bank%20Borrowings) As of June 30, 2025, total bank borrowings significantly increased to RMB 207,324 thousand from RMB 54,914 thousand as of December 31, 2024, primarily for the construction of R&D and commercial production facilities, and are guaranteed by an executive director and their spouse Analysis of Bank Borrowings (As of June 30, 2025) | Item | As of June 30, 2025 (RMB thousand) | As of December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current | 195,855 | 53,094 | | Current | 11,469 | 1,820 | | **Total** | **207,324** | **54,914** | - Obtained bank borrowings of **RMB 200,000,000** for the construction of Beijing R&D and commercial production facilities, of which **RMB 91,730,000** has been drawn down[98](index=98&type=chunk) - Obtained bank loan financing of **RMB 300,000,000** for the Zhuhai R&D construction project, of which **RMB 110,416,000** has been drawn down[99](index=99&type=chunk) - Both long-term borrowings are guaranteed by Mr. Kong Jian, an executive director of the Company, and his spouse, Ms. Zhang Yanping, and are secured by certain leased land, construction in progress, and properties[99](index=99&type=chunk) [17. Deferred Government Grants](index=40&type=section&id=17.%20Deferred%20Government%20Grants) As of June 30, 2025, deferred government grants amounted to RMB 29,460 thousand, a decrease from RMB 32,302 thousand as of December 31, 2024, primarily due to transfers to profit or loss Changes in Deferred Government Grants (For the six months ended June 30) | Item | Property and Equipment (RMB thousand) | Right-of-use Assets (RMB thousand) | R&D Activities (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | As of January 1, 2025 (audited) | 28,298 | 4,004 | – | 32,302 | | Deferred government grants transferred to profit or loss | (1,507) | (1,335) | – | (2,842) | | As of June 30, 2025 (unaudited) | 26,791 | 2,669 | – | 29,460 | | As of January 1, 2024 (audited) | 21,593 | 6,674 | 9,400 | 37,667 | | Deferred government grants transferred to profit or loss | (1,267) | (1,335) | – | (2,602) | | As of June 30, 2024 (unaudited) | 20,326 | 5,339 | 9,400 | 35,065 | - Government grants include compensation for capital expenditures on property and equipment, right-of-use assets, and subsidies for R&D activities[101](index=101&type=chunk) [18. Share Capital/Treasury Shares](index=41&type=section&id=18.%20Share%20Capital%2FTreasury%20Shares) The company's share capital remained unchanged, but treasury shares increased due to repurchases; as of June 30, 2025, the company held 3,219,200 treasury H-shares for a total consideration of RMB 36,890 thousand Share Capital (As of June 30, 2025) | Item | Number of Shares (thousand shares) | Share Capital (RMB thousand) | | :--- | :--- | :--- | | As of January 1, 2024, June 30, 2024, January 1, 2025, and June 30, 2025 | 202,450 | 202,450 | - For the six months ended June 30, 2025, the Company repurchased a total of **1,759,200** of its own ordinary shares through the Stock Exchange, for a total consideration of **RMB 36,890,000**[103](index=103&type=chunk) - As of the end of the reporting period, all repurchased **3,219,200 shares** were held as treasury shares[103](index=103&type=chunk) [19. Share-based Payment Transactions](index=41&type=section&id=19.%20Share-based%20Payment%20Transactions) This note details the company's employee incentive scheme implemented in

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，概不就因本公告全部或任何部分內容所產生或因依 賴該等內容而引致的任何損失承擔任何責任。 Tuya Inc. 塗鴉智能* （於開曼群島註冊成立以不同投票權控制的有限責任公司） （香港聯交所股份代號：2391） （紐約證券交易所股票代碼：TUYA） 截至2025年6月30日止六個月中期業績公告 全球領先雲平台服務提供商Tuya Inc.（「Tuya」或「本公司」，聯交所代號：2391及 紐交所代號：TUYA）今日公佈本公司、其附屬公司及合併聯屬實體（「本集團」） 截至2025年6月30日止六個月（「報告期」）的未經審計財務業績連同截至2024年6 月30日止六個月之比較數字。 截至2025年6月30日止六個月的財務摘要 * 僅供識別 1 • 總收入為154.8百萬美元，同比增長約14.7%（截至2024年6月30日止六個 月：134.9百萬美元）。 • 平台即服務（「PaaS」）收入為111.9百萬美元，同比增長約12.0%（截至2024 年6月30日止六個月：99.9百萬美元）。 • 軟件即 ...

[Chairman's Statement](index=1&type=section&id=Chairman's%20Statement) [Global Economy and Business Challenges](index=1&type=section&id=Global%20Economy%20and%20Business%20Challenges) In the first half of 2025, the global economy and trade were impacted by US tariff policies and geopolitical changes, posing severe challenges to the global apparel industry and the Group's business - The global economy and trade were significantly affected by aggressive US tariff policies and geopolitical changes, leading to severe and difficult challenges for the global apparel industry, with the Group's business inevitably experiencing deeper impacts[2](index=2&type=chunk) - The Group implemented deeper reforms, actively promoted the "Dali Culture" of adapting to new times and laws, and actively explored new markets to seize growth opportunities in emerging and high-end markets[3](index=3&type=chunk) Key Financial Indicators for H1 2025 | Indicator | Amount (HKD) | | :--- | :--- | | Profit attributable to shareholders | 41.7 million | | Ratio of non-current liabilities to shareholders' equity | 39.3% | | Current ratio | 1.2 | | Basic earnings per share | 0.14 | | Net asset value per share | 10.36 | | Interim dividend | 0.035/share | [Strategic Direction and Future Outlook](index=2&type=section&id=Strategic%20Direction%20and%20Future%20Outlook) The Group focuses on sustainable new products, technological innovation (AI and digital transformation), and stable management of the "Dali International Industrial Park" project, aiming for long-term development with flexible strategies - Dali focuses on the low-carbon economy, circular fashion, and healthy lifestyles, promoting the research and development of high-performance and recyclable new materials, and developing more innovative products in sports fashion and daily wear[5](index=5&type=chunk) - The Group continues to advance AI and digital transformation, with the core objective of enhancing supply chain speed and rapid response capabilities, strengthening quick response, and promoting design and R&D innovation[5](index=5&type=chunk) - The "Dali International Industrial Park" project maintains stable operations, laying a solid foundation for the long-term development of high-tech talent and resources, with the Group pursuing development with a long-term and forward-looking perspective[5](index=5&type=chunk) [Performance](index=3&type=section&id=Performance) [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement reports the unaudited condensed consolidated profit or loss and other comprehensive income for the six months ended June 30, 2025, showing year-on-year decreases in total revenue, profit for the period, and EPS, but a turnaround from loss to profit in total comprehensive income Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (HKD thousand) | 2024 (HKD thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | 1,507,792 | 1,643,045 | -8.23% | | Operating Gross Profit | 288,312 | 337,983 | -14.70% | | Profit Before Tax | 44,209 | 67,348 | -34.37% | | Profit for the Period | 42,067 | 53,081 | -20.75% | | Total Comprehensive Income (Expense) for the Period | 74,801 | (30,637) | Turnaround from loss to profit | | Profit Attributable to Shareholders of the Company | 41,747 | 53,305 | -21.68% | | Basic Earnings Per Share | HKD 0.14 | HKD 0.17 | -17.65% | [Unaudited Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement provides the unaudited condensed consolidated financial position as of June 30, 2025, presenting the period-end balances of total assets, total liabilities, and shareholders' equity, reflecting changes in the company's asset structure and solvency Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Indicator | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | Change | | :--- | :--- | :--- | :--- | | Non-current Assets | 4,121,906 | 4,012,922 | +2.72% | | Current Assets | 2,138,741 | 2,166,125 | -1.26% | | Current Liabilities | 1,839,570 | 1,836,301 | +0.18% | | Net Current Assets | 299,171 | 329,824 | -9.30% | | Net Assets | 3,165,859 | 3,091,058 | +2.42% | | Equity Attributable to Shareholders of the Company | 3,190,866 | 3,116,385 | +2.39% | [Notes to the Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [Basis of Preparation](index=7&type=section&id=Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in accordance with HKAS 34 "Interim Financial Reporting" issued by the HKICPA and applicable disclosure requirements of Appendix D2 of the HKEX Listing Rules - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of Appendix D2 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[12](index=12&type=chunk) [Significant Accounting Policies](index=7&type=section&id=Significant%20Accounting%20Policies) The report is prepared on a historical cost basis, with accounting policies consistent with the prior year's financial report, except for investment properties and some financial instruments measured at fair value, and new/revised standards having no material impact - The condensed consolidated financial statements have been prepared on a historical cost basis, except for investment properties and certain financial instruments which are measured at fair value, and the accounting policies are consistent with those used in the preparation of the Group's annual financial statements for the year ended December 31, 2024[13](index=13&type=chunk) - The application of the revised Hong Kong Financial Reporting Standards has no material impact on the Group's financial position and financial performance for the current period and prior periods and/or the disclosures contained in these condensed consolidated financial statements[14](index=14&type=chunk) [Revenue and Segment Information](index=8&type=section&id=Revenue%20and%20Segment%20Information) This section details the Group's revenue by customer contracts and geographical areas, as well as revenue and results for the two business segments: garment manufacturing and trading, and property investment and development, explaining the calculation of segment profit Total Revenue and Geographical Breakdown (For the six months ended June 30) | Indicator | 2025 (HKD thousand) | 2024 (HKD thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | 1,507,792 | 1,643,045 | -8.23% | | Revenue from China | 848,670 | 955,137 | -11.14% | | Revenue from USA | 233,556 | 213,707 | +9.29% | | Revenue from Europe | 184,066 | 195,125 | -5.77% | | Revenue from Other Regions | 241,500 | 279,076 | -13.46% | Segment Revenue and Results (For the six months ended June 30) | Segment | 2025 Revenue (HKD thousand) | 2024 Revenue (HKD thousand) | 2025 Result (HKD thousand) | 2024 Result (HKD thousand) | | :--- | :--- | :--- | :--- | :--- | | Garment Manufacturing and Trading | 1,477,516 | 1,577,545 | 41,511 | 73,467 | | Property Investment and Development | 30,276 | 65,500 | (843) | 13,772 | - Segment profit refers to the profit earned by each segment but excludes fair value changes of derivative financial instruments and investment properties, certain central administrative expenses, and other expenses, primarily used for resource allocation and performance evaluation[19](index=19&type=chunk) [Other Net Gains and Losses](index=10&type=section&id=Other%20Net%20Gains%20and%20Losses) This section discloses other net gains and losses for the six months ended June 30, 2025, primarily influenced by fair value changes of investment properties and derivative financial instruments, showing a significant year-on-year increase Other Net Gains and Losses (For the six months ended June 30) | Indicator | 2025 (HKD thousand) | 2024 (HKD thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Fair Value Change of Investment Properties | 28,969 | 3,436 | +743.0% | | Fair Value Change of Derivative Financial Instruments | 3,641 | (1,261) | Turnaround from loss to gain | | Net Exchange Gain | 1,749 | 1,028 | +70.1% | | Total | 33,608 | 2,582 | +1209.4% | [Finance Costs](index=10&type=section&id=Finance%20Costs) This section discloses finance costs for the six months ended June 30, 2025, primarily comprising interest on bank loans and overdrafts, with the total amount decreasing year-on-year Finance Costs (For the six months ended June 30) | Indicator | 2025 (HKD thousand) | 2024 (HKD thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Interest on Bank Loans and Overdrafts | 35,752 | 42,242 | -15.36% | | Total Borrowing Costs | 36,304 | 43,168 | -15.90% | | Less: Amount Capitalized for Qualifying Assets | (2,836) | (1,714) | +65.46% | | Total | 33,468 | 41,454 | -19.27% | [Income Tax Expense](index=11&type=section&id=Income%20Tax%20Expense) This section discloses income tax expense for the six months ended June 30, 2025, showing significant decreases in tax expenses for both Hong Kong and Mainland China, leading to a substantial reduction in total tax expense Income Tax Expense (For the six months ended June 30) | Tax Source | 2025 (HKD thousand) | 2024 (HKD thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Hong Kong | 2,006 | 5,566 | -63.90% | | Mainland China | 504 | 12,975 | -96.12% | | Total Current Period Tax Expense | 2,510 | 18,541 | -86.47% | | Total Income Tax Expense | 2,142 | 14,267 | -84.99% | [Profit for the Period](index=11&type=section&id=Profit%20for%20the%20Period) This section explains certain items deducted from or included in the profit for the period, including depreciation, inventory provisions, and interest income, reflecting changes in cost structure and revenue sources Items Deducted From (Included In) Profit for the Period (For the six months ended June 30) | Item | 2025 (HKD thousand) | 2024 (HKD thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Depreciation of Property, Plant and Equipment | 35,033 | 28,528 | +22.80% | | Depreciation of Right-of-Use Assets | 3,019 | 2,832 | +6.60% | | Net Provision for (Reversal of) Inventory | 536 | (10,701) | Turnaround from reversal to provision | | Interest Income | (4,462) | (9,769) | -54.34% | [Earnings Per Share](index=12&type=section&id=Earnings%20Per%20Share) This section provides data for the calculation of basic and diluted earnings per share for the six months ended June 30, 2025, showing a year-on-year decrease in EPS and explaining the assumptions for diluted EPS calculation Earnings Per Share Calculation Data (For the six months ended June 30) | Indicator | 2025 (HKD thousand/shares) | 2024 (HKD thousand/shares) | YoY Change | | :--- | :--- | :--- | :--- | | Profit Attributable to Shareholders of the Company | 41,747 | 53,305 | -21.68% | | Number of Ordinary Shares (thousands) | 305,616 | 305,616 | 0% | | Basic and Diluted Earnings Per Share | HKD 0.14 | HKD 0.17 | -17.65% | - In calculating diluted earnings per share for the six months ended June 30, 2025, and June 30, 2024, the exercise of share options was not assumed as the exercise price of these share options was higher than the average market price of the shares[24](index=24&type=chunk) [Dividends](index=12&type=section&id=Dividends) This section discloses the interim dividend distribution for the six months ended June 30, 2025, which remained consistent with the prior year, and notes that no final dividend was declared - The Board declared an interim dividend of **HKD 0.035 per share** for the six months ended June 30, 2025, which is the same as the dividend for the six months ended June 30, 2024[25](index=25&type=chunk) - No final dividend for the year ended December 31, 2024, was declared or paid during this interim period[25](index=25&type=chunk) [Trade and Other Receivables](index=13&type=section&id=Trade%20and%20Other%20Receivables) This section describes the composition of trade and other receivables and credit period policies, providing an aging analysis as of June 30, 2025, showing that receivables within 90 days constitute the largest portion - Trade and other receivables primarily include receivables from garment sales and property leases, with credit terms granted to garment trading customers mainly ranging from **30 to 90 days**[26](index=26&type=chunk) Aging Analysis of Trade and Other Receivables (As of June 30, 2025) | Aging | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | | :--- | :--- | :--- | | Within 90 days | 550,341 | 584,142 | | 91 to 180 days | 34,154 | 33,112 | | 181 to 360 days | 18,491 | 23,746 | | Over 360 days | 18,049 | 6,083 | | Total | 621,035 | 647,083 | [Trade and Other Payables](index=13&type=section&id=Trade%20and%20Other%20Payables) This section provides an aging analysis of trade and other payables as of June 30, 2025, indicating that payables within 90 days represent the largest share, with a significant amount of accrued purchases Aging Analysis of Trade and Other Payables (As of June 30, 2025) | Aging | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | | :--- | :--- | :--- | | Within 90 days | 421,903 | 392,707 | | 91 to 180 days | 46,435 | 48,252 | | 181 to 360 days | 13,061 | 4,244 | | Over 360 days | 11,033 | 12,563 | | Accrued Purchases | 191,894 | 218,112 | | Total | 684,326 | 675,878 | [Management Discussion and Analysis](index=14&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=14&type=section&id=Business%20Review) Facing a complex international landscape, the Group deepened digital management, implemented sustainable development strategies, optimized market and customer structures, expanded into new markets, and continuously advanced AI technology to enhance production efficiency and product innovation - The Group adheres to a management philosophy of steady progress and continuous innovation, actively optimizing market and customer structures and exploring emerging market opportunities through deepened digital management and sustainable development strategies[29](index=29&type=chunk) - The Group continuously advances the application of AI technology, significantly enhancing production flexibility and cost control through smart workshops and process automation, while accurately forecasting market trends[29](index=29&type=chunk) - In sustainable development, the Group actively practices green concepts, providing one-stop solutions and enhancing product durability through "Innocell" fabric technology and "Silkology" patented technology[30](index=30&type=chunk) - The Hangzhou "Dali International Industrial Park," despite being affected by the domestic real estate downturn, maintained stable rental income and gradually leveraged its platform value for technological and industrial synergy[30](index=30&type=chunk) [Financial Review](index=15&type=section&id=Financial%20Review) This section summarizes the Group's H1 2025 performance, noting year-on-year decreases in revenue and gross profit, but significant growth in other net gains, increased administrative and selling expenses as a percentage of revenue, reduced finance costs, and a decline in EPS Key Financial Performance (For the six months ended June 30) | Indicator | 2025 (HKD) | 2024 (HKD) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 1.5078 billion | 1.643 billion | -8.23% | | Gross Profit | 288.3 million | 338 million | -14.70% | | Gross Profit Margin | 19.1% | 20.6% | -1.5 percentage points | | Profit for the Period | 42.1 million | 53.1 million | -20.72% | | Other Net Gains | 33.6 million | 2.6 million | +1209.4% | | Basic Earnings Per Share | 0.14 | 0.17 | -17.65% | | Net Asset Value Per Share (2025/06/30) | 10.36 | 10.11 (2024/12/31) | +2.47% | Revenue Breakdown by Region (For the six months ended June 30) | Region | 2025 Revenue (HKD) | 2025 Share | 2024 Revenue (HKD) | 2024 Share | | :--- | :--- | :--- | :--- | :--- | | China | 848.7 million | 56.3% | 955.1 million | 58.1% | | USA and Europe | 417.6 million | 27.7% | 408.8 million | 24.9% | | Other Countries | 241.5 million | 16.0% | 279.1 million | 17.0% | - Finance costs decreased from **HKD 41.5 million** in the first six months of 2024 to **HKD 33.5 million** in the first six months of 2025, primarily due to a reduction in interest on bank loans and overdrafts[32](index=32&type=chunk) [Segment Information](index=16&type=section&id=Segment%20Information) This section provides revenue and segment results by major business and region, detailing operational highlights and strategic directions for garment manufacturing and trading, and property investment and development businesses [Garment Manufacturing and Trading Business](index=16&type=section&id=Garment%20Manufacturing%20and%20Trading%20Business) The garment manufacturing and trading business experienced year-on-year declines in revenue and profit, but the Group continues to optimize operational performance and gain market recognition through sustainable development practices, enhanced process efficiency, and digital transformation Garment Manufacturing and Trading Business Performance (For the six months ended June 30) | Indicator | 2025 (HKD thousand) | 2024 (HKD thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 1,477,516 | 1,577,545 | -6.47% | | Profit | 41,511 | 73,467 | -43.50% | - The Group has systematically integrated sustainable development practices into its comprehensive product development and manufacturing framework, continuously optimizing operational performance through enhanced process efficiency and digital transformation[34](index=34&type=chunk) [Property Investment and Development](index=16&type=section&id=Property%20Investment%20and%20Development) The property investment and development business saw a significant year-on-year decrease in revenue, but the completion of Phase II of the Hangzhou "Dali International Industrial Park" is expected to generate stable rental income and long-term development returns through optimized enterprise portfolios and industrial synergy Property Investment and Development Business Performance (For the six months ended June 30) | Indicator | 2025 (HKD thousand) | 2024 (HKD thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 30,276 | 65,500 | -53.77% | | Profit | (843) | 13,772 | Turnaround from profit to loss | - With the completion of Phase II of the Hangzhou "Dali International Industrial Park," the Group continues to optimize its tenant portfolio, attracting diverse high-quality talent and capital to build an innovative ecosystem that promotes collaborative R&D and technological development[35](index=35&type=chunk) [Environmental, Social and Governance (ESG) Responsibility](index=17&type=section&id=Environmental%2C%20Social%20and%20Governance%20(ESG)%20Responsibility) The Group deeply integrates sustainable development into its core business strategy, actively promotes green transformation, innovative recycling technologies, and high-value-added product R&D, setting six-year sustainability goals, while also focusing on employee development, fair management, and integrity culture - The Group deeply integrates sustainable development concepts into its core business strategy, actively establishing strategic alliances with global fashion brands to jointly promote the industry's green transformation and build a sustainable fashion circular model[36](index=36&type=chunk) - In green product development, the Group implements green sustainable development concepts, with its INNOCELL®T2T series products providing comprehensive fashion circular solutions for the industry and initiating a pilot production line for textile waste recycling[37](index=37&type=chunk) - The Group has set six-year sustainable development goals covering green energy, diversity and inclusion, safe workplace, community integration, and social contribution, with specific action plans formulated[37](index=37&type=chunk) - The Group adheres to its core values of "Achieving Self and Others, Benefiting Self and Others," valuing employee development, fostering a harmonious, inclusive, equal, and respectful work environment, and implementing competitive compensation strategies[37](index=37&type=chunk) - The Group upholds principles of integrity, maintaining zero tolerance for any corruption and fraudulent activities, regularly providing anti-corruption training for new employees and board members, and establishing transparent and compliant internal complaint channels and customer privacy protection systems[38](index=38&type=chunk) [Financial Position and Risk Management](index=18&type=section&id=Financial%20Position%20and%20Risk%20Management) This section details the Group's cash and bank balances, bank loan composition and usage, debt ratios, and current ratios, analyzing foreign currency risk, pledged assets, capital expenditures, capital commitments, and contingent liabilities, emphasizing a robust capital base and liquidity management Liquidity and Debt Ratios (As of June 30, 2025) | Indicator | June 30, 2025 (HKD) | December 31, 2024 (HKD) | Change | | :--- | :--- | :--- | :--- | | Total Cash and Cash Equivalents, Short-term Bank Deposits, and Other Financial Assets at FVTPL | 573 million | 593.8 million | -3.50% | | Bank Loans | 1.623 billion | 1.6 billion | +1.44% | | Ratio of Non-current Liabilities to Shareholders' Equity | 39.3% | 40.2% | -0.9 percentage points | | Current Ratio | 1.2 | 1.2 | No change | - Bank loans are primarily used for various property construction and development projects, as well as fixed asset investments for developing and upgrading production facilities in Mainland China[39](index=39&type=chunk) - Net cash inflow from operating activities was approximately **HKD 69.1 million**, and management is confident in the Group's ability to maintain good working capital and liquidity levels[39](index=39&type=chunk) - Foreign currency risk is mainly related to RMB and USD; as HKD is pegged to USD, the Group considers the related foreign exchange risk to be minimal[40](index=40&type=chunk) - The Group has pledged property, plant and equipment of **HKD 31.6 million**, investment properties of **HKD 2.1952 billion**, and certain deposits of **HKD 122.1 million** for bank borrowings[41](index=41&type=chunk) Capital Expenditures and Commitments (As of June 30, 2025) | Item | H1 2025 (HKD) | H1 2024 (HKD) | June 30, 2025 (HKD) (Commitment) | December 31, 2024 (HKD) (Commitment) | | :--- | :--- | :--- | :--- | :--- | | Investment in Manufacturing Capacity and Environmental Equipment | 34.2 million | 47.7 million | - | - | | Investment in Property Development and Construction Projects | 40.3 million | 36.8 million | - | - | | Capital Expenditure Commitments (Unreflected) | - | - | 261.4 million | 394.4 million | - As of June 30, 2025, the Group had no significant contingent liabilities[44](index=44&type=chunk) [Other Information](index=19&type=section&id=Other%20Information) [Human Resources](index=19&type=section&id=Human%20Resources) The Group employs approximately 5,000 staff, with management highly prioritizing employee development through robust training programs, performance appraisal frameworks, and competitive compensation and benefits to enhance professional capabilities and team cohesion - As of June 30, 2025, the Group employed approximately **5,000 staff**[45](index=45&type=chunk) - Management highly values employee development, enhancing professional capabilities and knowledge through sound training programs, comprehensive performance appraisal frameworks, and competitive compensation strategies[45](index=45&type=chunk) [Interim Dividend](index=19&type=section&id=Interim%20Dividend) The Board declared an interim dividend of HKD 0.035 per share for the six months ended June 30, 2025, totaling approximately HKD 10.697 million, consistent with the prior year - The Board declared an interim dividend of **HKD 0.035 per share** for the six months ended June 30, 2025, totaling approximately **HKD 10.697 million**[46](index=46&type=chunk) - The dividend will be paid on October 3, 2025, to shareholders whose names appear on the register of members on September 12, 2025[46](index=46&type=chunk) [Closure of Register of Members](index=19&type=section&id=Closure%20of%20Register%20of%20Members) To determine eligibility for the interim dividend, the company will suspend its share transfer registration from September 11 to September 12, 2025 - The company's share transfer registration will be suspended from Thursday, September 11, 2025, to Friday, September 12, 2025, both days inclusive, to determine shareholders entitled to the interim dividend[47](index=47&type=chunk) [Corporate Governance](index=19&type=section&id=Corporate%20Governance) For the six-month accounting period ended June 30, 2025, the company applied and complied with all principles and applicable code provisions of the Corporate Governance Code set out in Appendix C1 of the HKEX Listing Rules - For the six-month accounting period ended June 30, 2025, the company applied and complied with all principles and applicable code provisions of the Corporate Governance Code set out in Appendix C1 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[48](index=48&type=chunk) [Review by Audit Committee](index=20&type=section&id=Review%20by%20Audit%20Committee) The company's Audit Committee has reviewed the Group's unaudited condensed consolidated financial information and interim report for the six months ended June 30, 2025 - The company's Audit Committee has reviewed the Group's unaudited condensed consolidated financial information and interim report for the six months ended June 30, 2025[49](index=49&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) During the six-month period ended June 30, 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the six-month period ended June 30, 2025, the company did not redeem any of its listed securities, and neither the company nor its subsidiaries purchased or sold any of the company's listed securities[50](index=50&type=chunk) [Publication of Results Announcement and Interim Report](index=20&type=section&id=Publication%20of%20Results%20Announcement%20and%20Interim%20Report) The results announcement has been published on the company's and HKEX websites, and the interim report will be published and dispatched to shareholders on or before September 30, 2025 - This announcement is published on the company's website (www.highfashion.com.hk) and the HKEX website (www.hkexnews.hk)[51](index=51&type=chunk) - The 2025 Interim Report will be published and dispatched to the company's shareholders on or before Tuesday, September 30, 2025[51](index=51&type=chunk) [Appointment of Nomination Committee Members](index=20&type=section&id=Appointment%20of%20Nomination%20Committee%20Members) Ms. Leung Wing Man and Mr. Wong Chun Cheong were appointed as members of the Nomination Committee effective August 26, 2025 - Effective August 26, 2025, Ms. Leung Wing Man, a non-executive director, and Mr. Wong Chun Cheong, an independent non-executive director, were appointed as members of the company's Nomination Committee[52](index=52&type=chunk)

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，概不就因本公告全部或任 何部分內容所產生或因依賴該等內容而引致的任何損失承擔任何責任。 財務摘要 1 • 本集團於報告期的收益約人民幣701.86百萬元，較截至2024年6月30日止六 個月的收益約人民幣640.75百萬元增加約9.54%。 • 本集團於報告期的毛利約人民幣168.44百萬元，較截至2024年6月30日止六 個月的毛利約人民幣165.16百萬元增加約1.99%。 • 本集團於報告期的純利約人民幣74.60百萬元，較截至2024年6月30日止六個 月的純利約人民幣51.79百萬元增加約44.05%。 • 報告期內，本公司權益股東應佔每股股份基本及攤薄盈利分別約人民幣0.06 元及人民幣0.06元，而截至2024年6月30日止六個月的每股股份基本及攤薄 盈利分別約人民幣0.04元及人民幣0.04元。 • 於2025年6月30日，本集團的資產負債率為23.0%，而於2024年12月31日則為 28.2%。 • 董事會不建議就截至2025年6月30日止六個月派付中期股息（截至2024 ...

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。 承董事會命 元續科技控股有限公司 主席、行政總裁兼執行董事 蔡水理 新加坡，二零二五年八月二十六日 METASURFACE TECHNOLOGIES HOLDINGS LIMITED 元 續 科技控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：8637） 截至二零二五年六月三十日止六個月的 中期業績公告 元續科技控股有限公司（「本公司」）董事會（「董事」）欣然宣佈本公司及其附屬公司 （「本集團」）截至二零二五年六月三十日止六個月的未經審核中期財務業績。本公告 載有本公司截至二零二五年六月三十日止六個月的中期業績全文，連同二零二四年 同期的比較數字，符合聯交所GEM證券上市規則關於中期業績初步公告所附資料 的相關規定。 於本公告日期，本公司之執行董事為拿督斯里蔡水理先生、余偉娟女士及蘇振裕先 生；本公司之非執行董事為程章金先生；以及獨立非執行董事為陳志強先生、洪勇 勝先生及田揚康先生。 – 1 ...

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佈的內容概不負責，對其準確性或 完整性亦不發表任何聲明，並明確表示，概不會就因本公佈之全部或任何部份內容而產生或因倚 賴該等內容而引致之任何損失承擔任何責任。 ROAD KING INFRASTRUCTURE LIMITED 路勁基建有限公司 * （於百慕達註冊成立之有限公司 ） （股 份 代號：1098） 截至二零二五年六月三十日止六個月 中期業績公佈 | 摘要 | | | | --- | --- | --- | | | 截至六月三十日止六個月 | | | | 二零二五年 | 二零二四年 | | 物業銷售額（包括合資及聯營企業項目） | 人民幣52.32億元 | 人民幣73.04億元 | | 物業交付額（包括合資及聯營企業項目） | 人民幣63.67億元 | 人民幣221.35億元 | | 印尼高速公路項目路費收入 | 港幣8.78億元 | 港幣9.19億元 | | 本公司擁有人應佔虧損 | 港幣20.34億元 | 港幣10.27億元 | | | 二零二五年 | 二零二四年 | | | 六月三十日 | 十二月三十一日 | | 資產總額 | 港幣533.2 ...

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。 Tuya Inc. 塗鴉智能* 本公告乃根據香港聯合交易所有限公司證券上市規則第13.09條及證券及期貨條 例（香港法例第571章）第XIVA部刊發。 1 Tuya Inc.（「Tuya」或「本公司」）欣然宣佈本公司及其附屬公司及合併聯屬實體 （「本集團」）截至2025年6月30日止三個月的未經審計簡明合併業績。 本公告載有前瞻性陳述。該等陳述乃根據《1995年美國私人證券訴訟改革法案》的 「安全港」條文作出。前瞻性陳述並非歷史事實的陳述，包括有關本公司信念及期 望的陳述。前瞻性陳述涉及固有風險及不確定因素，而多項因素可能導致實際結 果與任何前瞻性陳述所載者有重大差異。在若干情況下，前瞻性陳述可透過「可 能」、「將會」、「預期」、「預計」、「目標」、「旨在」、「估計」、「擬」、「計劃」、「相 信」、「潛在」、「繼續」、「很可能」等字眼或語句或其他類似表述予以識別。有關 該等及其他風險、不確定因素或因素的 ...

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。 Lingbao Gold Group Company Ltd. 靈寶黃金集團股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：3330） 截至二零二五年六月三十日止六個月 中期業績公佈 靈寶黃金集團股份有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然公佈本公司及其 附屬公司（統稱「本集團」或「我們」）截至二零二五年六月三十日止六個月（「本期間」）的未 經審核中期業績。此中期財務業績已經本公司審核委員會（「審核委員會」）審閱。另外， 本集團之外部核數師已按照香港會計師公會（「香港會計師公會」）頒佈的香港審閱工作準 則第2410號「實體的獨立核數師審閱中期財務資料」審閱中期財務報告。 – 1 – 簡明綜合損益表 截至二零二五年六月三十日止六個月 — 未經審核 （以人民幣元表示） | | | 截至 | 截至 | | --- | --- | --- | --- | | | | 二零 ...

[Financial Summary](index=1&type=section&id=Financial%20Summary) [Key Financial and Operational Highlights](index=1&type=section&id=Key%20Financial%20and%20Operational%20Highlights) Dexin Services Group Co., Ltd. faced challenges in the first half of 2025, with declines in revenue, profit, and gross margin, alongside decreases in GFA under management and contracted GFA, and no interim dividend recommended Key Financial and Operational Data for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 443.0 | 473.2 | -6.4% | | Gross Profit | 94.4 | 101.5 | -7.0% | | Gross Margin | 21.3% | 21.5% | -0.2% | | Profit | 34.6 | 42.5 | -18.6% | | Basic EPS | RMB 0.039 | RMB 0.045 | -13.3% | | GFA Under Management (million sq.m.) | 38.3 | 39.6 | -3.2% | | Contracted GFA (million sq.m.) | 41.4 | 44.8 | -7.7% | | Interim Dividend | None | None | - | [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [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 experienced declines in both revenue and profit in H1 2025, primarily due to increased cost of sales, net other losses, and a significant reduction in finance income, resulting in an **18.6%** year-on-year decrease in profit for the period Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 442,992 | 473,228 | -6.4% | | Cost of sales | (348,579) | (371,697) | -6.2% | | Gross profit | 94,413 | 101,531 | -7.0% | | Other income | 818 | 1,354 | -39.6% | | Net other (losses) / gains | (1,190) | 667 | -278.4% | | Selling and marketing expenses | (2,158) | (5,908) | -63.5% | | Administrative expenses | (31,698) | (39,748) | -20.2% | | Impairment loss on trade and other receivables | (13,239) | (10,964) | 20.8% | | Operating profit | 47,122 | 46,783 | 0.7% | | Net finance income | 401 | 9,056 | -95.6% | | Profit before tax | 47,523 | 55,839 | -14.9% | | Income tax expense | (12,879) | (13,355) | -3.6% | | Profit and total comprehensive income for the period | 34,644 | 42,484 | -18.6% | | Profit attributable to owners of the Company | 34,138 | 42,169 | -19.0% | | Basic earnings per share (RMB) | 0.039 | 0.045 | -13.3% | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets slightly decreased, and net current assets declined, but total assets less current liabilities and net assets both increased, indicating financial stability Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 177,335 | 39,747 | 346.1% | | Current assets | 1,210,915 | 1,301,360 | -7.0% | | Current liabilities | 653,348 | 640,874 | 2.0% | | Net current assets | 557,567 | 660,486 | -15.6% | | Total assets less current liabilities | 734,902 | 700,233 | 4.9% | | Non-current liabilities | 10,135 | 10,000 | 1.3% | | Net assets | 724,767 | 690,233 | 5.0% | | Total equity | 724,767 | 690,233 | 5.0% | [Notes to the Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [General Information and Accounting Policies](index=6&type=section&id=General%20Information%20and%20Accounting%20Policies) Dexin Services Group Co., Ltd. was incorporated in the Cayman Islands in 2020, listed on the HKEX in 2021, and primarily provides property management and value-added services in China; this period's financial statements adopt 2024 accounting policies and new HKFRS effective January 1, 2025, without significant changes - The Company was incorporated in the Cayman Islands on October 22, 2020, and listed on the Main Board of the Hong Kong Stock Exchange on July 15, 2021[9](index=9&type=chunk) - The Group is primarily engaged in providing property management services, non-owner value-added services, and community value-added services in China[9](index=9&type=chunk) - The adoption of new and revised Hong Kong Financial Reporting Standards in the current period did not result in significant changes to accounting policies, financial statement presentation, or reported amounts[11](index=11&type=chunk) [Revenue Breakdown](index=7&type=section&id=Revenue%20Breakdown) The Group's total revenue for H1 2025 was **RMB 443.0 million**, a **6.4%** year-on-year decrease, with property management services remaining the primary source, but non-owner and community value-added services revenue significantly declined Revenue by Service Type (For the six months ended June 30) | Service Type | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Property management services | 408,417 | 413,438 | -1.2% | | Non-owner value-added services | 13,813 | 19,835 | -30.4% | | Community value-added services | 20,762 | 39,955 | -48.0% | | **Total** | **442,992** | **473,228** | **-6.4%** | Revenue by Timing of Recognition (For the six months ended June 30) | Timing of Recognition | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Over time | 438,676 | 452,535 | -3.0% | | At a point in time | 4,316 | 20,693 | -79.1% | | **Total** | **442,992** | **473,228** | **-6.4%** | - All of the Group's revenue is derived from China[14](index=14&type=chunk) [Segment Information](index=7&type=section&id=Segment%20Information) Management reviews the Group's business operations as a single operating segment, with all revenue and non-current assets located in China - The Group is primarily engaged in providing property management services, community value-added services, and non-owner value-added services, which management reviews as a single operating segment[16](index=16&type=chunk) - All of the Group's revenue and non-current assets are located in China[16](index=16&type=chunk)[17](index=17&type=chunk) [Other Income and Expenses](index=8&type=section&id=Other%20Income%20and%20Expenses) The Group's other income, primarily from government grants, decreased in H1 2025, while net other losses significantly increased due to losses from derecognizing subsidiaries and associates Other Income (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Government grants | 721 | 1,141 | -36.9% | | VAT deductions | 97 | 213 | -54.4% | | **Total** | **818** | **1,354** | **-39.6%** | Net Other (Losses) / Gains (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Exchange losses | (33) | (894) | -96.3% | | Loss on derecognition of a subsidiary | (651) | — | - | | Loss on derecognition of an associate | (524) | — | - | | Others | 18 | 1,561 | -98.8% | | **Total** | **(1,190)** | **667** | **-278.4%** | [Net Finance Income](index=9&type=section&id=Net%20Finance%20Income) The Group's net finance income significantly decreased by **95.6%** in H1 2025, primarily due to a sharp reduction in interest income from loans Net Finance Income (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Interest income from bank deposits | 119 | 251 | -52.6% | | Interest income from loans | 711 | 9,378 | -92.4% | | Interest expense on borrowings | (419) | (473) | -11.4% | | Interest expense on lease liabilities | (10) | (100) | -90.0% | | **Net finance income** | **401** | **9,056** | **-95.6%** | [Income Tax Expense](index=9&type=section&id=Income%20Tax%20Expense) The Group's income tax expense slightly decreased in H1 2025, mainly due to deferred tax, with the Company exempt in Cayman Islands and BVI, while mainland China operations are taxed at applicable rates, and some high-tech enterprises enjoy a **15%** preferential rate Income Tax Expense (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Current tax | 16,189 | 16,096 | 0.6% | | Deferred tax | (3,310) | (2,741) | 20.7% | | **Total** | **12,879** | **13,355** | **-3.6%** | - The Company is exempt from income tax in the Cayman Islands and British Virgin Islands, and its Hong Kong operations have no assessable profits[21](index=21&type=chunk)[22](index=22&type=chunk) - The general corporate income tax rate in mainland China is **25%**, while high-tech enterprises, such as Hangzhou Xier Technology Co., Ltd., enjoy a **15%** preferential tax rate[23](index=23&type=chunk) [Profit and Total Comprehensive Income for the Period](index=10&type=section&id=Profit%20and%20Total%20Comprehensive%20Income%20for%20the%20Period) The Group's profit for the period is accounted for after deducting various expenses, including significant changes in directors' remuneration and depreciation of property, plant, and equipment Profit Deductions for the Period (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Directors' remuneration | 1,113 | 1,797 | -38.1% | | Depreciation of property, plant and equipment and right-of-use assets | 2,027 | 5,394 | -62.5% | | Depreciation of investment properties | 3,476 | — | - | | Amortisation of intangible assets | 327 | 291 | 12.4% | | Loss on disposal of property, plant and equipment / write-off of property, plant and equipment | 383 | 60 | 538.3% | [Dividends and Earnings Per Share](index=10&type=section&id=Dividends%20and%20Earnings%20Per%20Share) The Board does not recommend an interim dividend for H1 2025, and basic earnings per share were **RMB 0.039**, a **13.3%** year-on-year decrease - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (2024 interim: none)[25](index=25&type=chunk) Earnings Per Share (For the six months ended June 30) | Indicator | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company (RMB thousand) | 34,138 | 42,169 | -19.0% | | Weighted average number of ordinary shares in issue (thousand shares) | 882,554 | 930,360 | -5.1% | | Basic earnings per share (RMB) | 0.039 | 0.045 | -13.3% | - Diluted loss per share is not presented as the Company has no outstanding potential ordinary shares[26](index=26&type=chunk) [Trade and Other Receivables and Prepayments](index=11&type=section&id=Trade%20and%20Other%20Receivables%20and%20Prepayments) As of June 30, 2025, total trade and other receivables and prepayments were **RMB 916.2 million**, a **15%** decrease from year-end 2024, with increased impairment provisions for trade receivables and loans reflecting credit risk from the real estate downturn Trade and Other Receivables and Prepayments (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade receivables (net of impairment) | 506,357 | 430,135 | 17.7% | | Other receivables (net of impairment) | 360,464 | 349,574 | 3.1% | | Prepayments | 43,999 | 50,918 | -13.6% | | Loans receivable (net of impairment) | 5,388 | 246,818 | -97.8% | | **Total** | **916,208** | **1,077,445** | **-15.0%** | Ageing Analysis of Trade Receivables (As of June 30) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | 0 to 180 days | 230,020 | 223,164 | 3.1% | | 181 to 365 days | 173,042 | 61,410 | 181.8% | | 1 to 2 years | 77,631 | 120,911 | -35.8% | | 2 to 3 years | 48,726 | 78,685 | -38.0% | | 3 to 4 years | 51,875 | 14,025 | 269.9% | | Over 4 years | 18,142 | 8,081 | 124.5% | | **Total** | **599,436** | **506,276** | **18.4%** | - Due to the borrower's failure to repay loans, the Company realized **RMB 139.05 million** from mortgaged parking spaces and acquired properties to offset the remaining **RMB 99.04 million** in loans[29](index=29&type=chunk) [Trade and Other Payables](index=13&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, the Group's total trade and other payables were **RMB 417.3 million**, a slight increase of **2.0%** from year-end 2024 Trade and Other Payables (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade payables | 192,992 | 195,442 | -1.2% | | Other payables | 224,343 | 213,795 | 4.9% | | **Total** | **417,335** | **409,237** | **2.0%** | Ageing Analysis of Trade Payables (As of June 30) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Within 1 year | 177,727 | 185,353 | -4.1% | | 1 to 2 years | 10,471 | 4,378 | 139.2% | | 2 to 3 years | 350 | 3,504 | -90.0% | | Over 3 years | 4,444 | 2,207 | 101.4% | | **Total** | **192,992** | **195,442** | **-1.2%** | [Share Capital and Repurchases](index=14&type=section&id=Share%20Capital%20and%20Repurchases) As of June 30, 2025, the Company's issued and fully paid share capital comprised **917,881,000 shares** with a par value of **RMB 7,564 thousand**; during the period, the Company repurchased **270,000 shares** for a total consideration of **HKD 205,200** Issued and Fully Paid Share Capital (As of June 30) | Date | Number of Ordinary Shares (shares) | Par Value of Ordinary Shares (HKD) | Equivalent Amount (RMB thousand) | | :--- | :--- | :--- | :--- | | January 1, 2024 | 937,308,000 | 9,373,080 | 7,738 | | Shares repurchased and cancelled | (19,427,000) | (194,270) | (174) | | December 31, 2024 and January 1, 2025 | 917,881,000 | 9,178,810 | 7,564 | | June 30, 2025 | 917,881,000 | 9,178,810 | 7,564 | - For the period ended June 30, 2025, the Group repurchased a total of **270,000 ordinary shares** listed on the Stock Exchange for a total consideration of approximately **RMB 210,000**[34](index=34&type=chunk) [Events After Reporting Period](index=14&type=section&id=Events%20After%20Reporting%20Period) Subsequent to the reporting period, the Group, through its wholly-owned subsidiary, entered into an agreement to acquire **100% equity** in Deqing Moganshan Ruijing Real Estate Co., Ltd., primarily engaged in hotel operations and management, for **RMB 78 million** - On July 31, 2025, a subsidiary of the Group agreed to acquire **95% and 5% equity** in Deqing Moganshan Ruijing Real Estate Co., Ltd. for **RMB 78 million**[33](index=33&type=chunk) - Deqing Moganshan is primarily engaged in hotel operations and management, as well as providing catering services[33](index=33&type=chunk) - As of the date of this announcement, the transaction has not yet been completed[33](index=33&type=chunk) [Chairman's Report](index=15&type=section&id=Chairman's%20Report) [Industry Landscape and Company Performance](index=15&type=section&id=Industry%20Landscape%20and%20Company%20Performance) In H1 2025, as the property industry entered a new phase of "quality and efficiency restructuring," Dexin Services Group advanced against the trend, ranking **19th** among "China's Top 100 Property Service Enterprises" for the **12th consecutive year**, demonstrating resilience and vitality with multiple accolades - The property management industry is rapidly entering a new phase of "quality and efficiency restructuring," with cooling M&A activity and a surge in project exits and residential fee reductions[35](index=35&type=chunk) - Dexin Services has been recognized by China Index Academy as one of "China's Top 100 Property Service Enterprises" for **12 consecutive years**, with its ranking rising to **19th**[35](index=35&type=chunk) - The Group also received honors such as "Top 100 Comprehensive Strength Chinese Property Enterprises" and "Top 30 East China Property Enterprises"[35](index=35&type=chunk) [Strategic Expansion and Diversification](index=15&type=section&id=Strategic%20Expansion%20and%20Diversification) The Group focuses on deep cultivation in regional markets, expands high-quality second-hand residential projects, continuously diversifies into non-residential sectors, successfully bid for public construction projects like Hangzhou Xiaoshan Youth Palace, and deepens joint ventures with state-owned enterprises - The Group insists on expanding quality second-hand residential projects, forming a virtuous expansion model of "management benchmark demonstration—local reputation building—stock market competition"[36](index=36&type=chunk) - In the first half of the year, the Group successfully bid for key public construction projects such as Hangzhou Xiaoshan Youth Palace and customized intelligent operation and management solutions[36](index=36&type=chunk) - The Group deepened cooperation with Quzhou Jiaotou, a state-owned enterprise controlled by Quzhou SASAC in Zhejiang, taking over projects like Quzhou East Bus Station and the Science and Education Industrial Park canteen, expanding into transportation hubs and canteen catering sectors[37](index=37&type=chunk) - Professional service brand Shengjie Environment successfully bid for multiple landscaping maintenance projects, including Hangzhou Fuyang Sports Center[37](index=37&type=chunk) [Service Innovation and Digital Transformation](index=16&type=section&id=Service%20Innovation%20and%20Digital%20Transformation) The Group prioritizes service, enhancing satisfaction through customer visits and quality improvement initiatives, enriching residential home services, and launching a high-end commercial property service brand in the non-residential sector; concurrently, it actively promotes green and technological transformation, implements smart service scenarios, and strengthens digitalization for operational management decisions - Adhering to the "Good House, Good Community, Good Life" philosophy, the Group completed **1,929 community upgrade projects** through customer home visits and the "Zhi Ji Song Chun Feng" quality improvement initiative[38](index=38&type=chunk) - The residential home service system has been enriched to include in-home cleaning, plumbing and electrical repairs, and pet feeding; in the non-residential sector, the high-end commercial property service brand "Shi Pu Lian Hang" has been launched[38](index=38&type=chunk) - Promoting green and technological transformation, the Group has implemented smart service scenarios such as cleaning robots, smart delivery robots, and smart inspection systems in commercial office buildings and industrial parks[39](index=39&type=chunk) - The Hangzhou Dexin Center rooftop photovoltaic renovation project has been completed, expected to generate **700,000 kWh** annually and reduce carbon emissions by **700 tons**[39](index=39&type=chunk) - Strengthening digitalization, the Group integrated an employee digital portal to enhance agile response to emergencies and achieved data-driven management and full-lifecycle cash flow monitoring through business-finance integration[41](index=41&type=chunk) [Organizational Development and Future Outlook](index=17&type=section&id=Organizational%20Development%20and%20Future%20Outlook) The Group values employee care and development, fostering a "Zhi Ji" culture through the "Blue Ribbon" fund and star butler certification system, while enhancing efficiency through organizational reform, cost reduction, and risk compliance; looking ahead, the Company will focus on core capabilities, refine products, reasonably reduce costs, and seize opportunities from AI technology - The Group regards employees as valuable resources, caring for frontline service personnel through the "Blue Ribbon" fund and emphasizing employee development rights, encouraging learning through systems like the star butler certification[40](index=40&type=chunk) - Organizational reform is being carried out with a focus on "lean headquarters, strong frontline" to streamline hierarchy, enable rapid decision-making, and prioritize cost reduction and efficiency improvement, with pilot project cloud warehouses achieving efficient operation[40](index=40&type=chunk) - In the future, the Group will leverage its flexibility as a private enterprise to build core capabilities, refine products, reasonably reduce costs and enhance efficiency, and seize opportunities presented by the AI technology revolution[42](index=42&type=chunk) [Management Discussion and Analysis](index=19&type=section&id=Management%20Discussion%20and%20Analysis) [Overview and Financial Review](index=19&type=section&id=Overview%20and%20Financial%20Review) Dexin Services, a leading integrated property management service provider in Zhejiang Province, maintained stable operations in H1 2025, but total revenue decreased by **6.4%** year-on-year, primarily due to declines in non-owner and community value-added services revenue - Dexin Services was recognized by China Index Academy as a TOP **19** China Property Service Hundred Enterprises in 2025[43](index=43&type=chunk) - The Group's main businesses include property management services, non-owner value-added services, and community value-added services[43](index=43&type=chunk) Revenue Breakdown by Business Line (For the six months ended June 30) | Business Line | 2025 (RMB thousand) | % of Total | 2024 (RMB thousand) | % of Total | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Property management services | 408,417 | 92.2% | 413,438 | 87.4% | -1.2% | | Non-owner value-added services | 13,813 | 3.1% | 19,835 | 4.2% | -30.4% | | Community value-added services | 20,762 | 4.7% | 39,955 | 8.4% | -48.0% | | **Total** | **442,992** | **100.0%** | **473,228** | **100.0%** | **-6.4%** | [Property Management Services](index=20&type=section&id=Property%20Management%20Services) Property management services revenue decreased by **1.2%** year-on-year to **RMB 408.4 million**, with GFA under management declining by **3.2%** to **38.3 million sq.m.**, primarily due to project structure optimization, and independent third-party developed properties accounting for the largest share of GFA under management - Property management services revenue was approximately **RMB 408.4 million**, a **1.2%** year-on-year decrease[46](index=46&type=chunk) - Total GFA under management was approximately **38.3 million sq.m.**, a **3.2%** year-on-year decrease, primarily due to the Company optimizing its project structure to retain high-quality projects[46](index=46&type=chunk) Contracted GFA and GFA Under Management (As of June 30) | Indicator | 2025 (thousand sq.m.) | 2024 (thousand sq.m.) | Change (%) | | :--- | :--- | :--- | :--- | | Contracted GFA at period-end | 41,417 | 44,851 | -7.7% | | GFA under management at period-end | 38,291 | 39,563 | -3.2% | Total GFA Under Management and Revenue by Property Type (As of June 30) | Property Type | 2025 GFA (thousand sq.m.) | 2025 Revenue (RMB thousand) | 2024 GFA (thousand sq.m.) | 2024 Revenue (RMB thousand) | | :--- | :--- | :--- | :--- | | Properties developed by Dexin Group | 13,638 | 151,948 | 13,793 | 149,198 | | Jointly developed properties | 4,383 | 60,058 | 4,693 | 61,398 | | Independent third-party properties | 20,270 | 196,411 | 21,077 | 202,842 | | **Total** | **38,291** | **408,417** | **39,563** | **413,438** | Total GFA Under Management and Revenue by Region (As of June 30) | Region | 2025 GFA (thousand sq.m.) | 2025 Revenue (RMB thousand) | 2024 GFA (thousand sq.m.) | 2024 Revenue (RMB thousand) | | :--- | :--- | :--- | :--- | | Zhejiang Province | 26,170 | 295,602 | 26,064 | 304,742 | | Yangtze River Delta Region (excluding Zhejiang Province) | 7,169 | 69,881 | 8,439 | 67,885 | | Other regions | 4,952 | 42,934 | 5,060 | 40,811 | | **Total** | **38,291** | **408,417** | **39,563** | **413,438** | Total GFA Under Management and Revenue by Property Type (As of June 30) | Property Type | 2025 GFA (thousand sq.m.) | 2025 Revenue (RMB thousand) | 2024 GFA (thousand sq.m.) | 2024 Revenue (RMB thousand) | | :--- | :--- | :--- | :--- | | Residential properties | 31,139 | 300,403 | 30,405 | 283,945 | | Non-residential properties | 7,152 | 108,014 | 9,158 | 129,493 | | **Total** | **38,291** | **408,417** | **39,563** | **413,438** | [Non-Owner Value-Added Services](index=23&type=section&id=Non-Owner%20Value-Added%20Services) Non-owner value-added services revenue decreased by **30.4%** year-on-year to **RMB 13.8 million**, primarily due to the ongoing downturn in the real estate industry, leading to a significant reduction in sales venue services revenue - Non-owner value-added services revenue was approximately **RMB 13.8 million**, a **30.4%** year-on-year decrease, primarily due to the continuous downturn in the real estate industry and decreasing service demand from partner property developers[54](index=54&type=chunk) Non-Owner Value-Added Services Revenue Breakdown (For the six months ended June 30) | Service Type | 2025 Revenue (RMB thousand) | % of Total | 2024 Revenue (RMB thousand) | % of Total | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Sales venue services | 3,720 | 26.9% | 13,147 | 66.3% | -71.7% | | Pre-delivery inspection services | 6,934 | 50.2% | 4,735 | 23.9% | 46.4% | | Property inspection and repair services | 1,121 | 8.1% | 1,623 | 8.1% | -30.9% | | Commercial consulting services | 2,038 | 14.8% | 330 | 1.7% | 517.6% | | **Total** | **13,813** | **100.0%** | **19,835** | **100.0%** | **-30.4%** | [Community Value-Added Services](index=24&type=section&id=Community%20Value-Added%20Services) Community value-added services revenue sharply decreased by **48.0%** year-on-year to **RMB 20.8 million**, primarily due to significant reductions in smart community solutions, home beautification services, and community retail and home services revenue, reflecting fewer property delivery projects and intensified market competition - Community value-added services revenue was approximately **RMB 20.8 million**, a **48.0%** year-on-year decrease[56](index=56&type=chunk) Community Value-Added Services Revenue Breakdown (For the six months ended June 30) | Service Type | 2025 Revenue (RMB thousand) | % of Total | 2024 Revenue (RMB thousand) | % of Total | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Smart community solutions | 1,792 | 8.6% | 9,380 | 23.5% | -80.9% | | Property sales and co-sales services | 366 | 1.8% | 507 | 1.3% | -27.8% | | Community resource value-added services | 13,556 | 65.2% | 13,892 | 34.8% | -2.4% | | Club services | 957 | 4.6% | 815 | 2.0% | 17.4% | | Home beautification services | 342 | 1.7% | 1,482 | 3.7% | -76.9% | | Community retail and home services | 3,749 | 18.1% | 13,879 | 34.7% | -73.0% | | **Total** | **20,762** | **100.0%** | **39,955** | **100.0%** | **-48.0%** | - The decline in smart community solutions revenue is primarily due to a significant decrease in property delivery projects, leading to a corresponding drop in demand[57](index=57&type=chunk) - The decrease in home beautification services revenue is mainly due to the continuous downturn in the real estate market and a significant reduction in delivered projects[59](index=59&type=chunk) - The decline in community retail and home services revenue is primarily attributed to insufficient strategic positioning and resource allocation, decreased business development capabilities, and intense market competition in the retail sector[59](index=59&type=chunk) [Cost of Sales, Gross Profit and Gross Margin](index=25&type=section&id=Cost%20of%20Sales%2C%20Gross%20Profit%20and%20Gross%20Margin) Cost of sales decreased by **6.2%** year-on-year to **RMB 348.6 million**, gross profit declined by **7.0%** to **RMB 94.4 million**, and gross margin slightly decreased by **0.2%** to **21.3%**; gross margins for non-owner and community value-added services significantly increased, primarily due to personnel restructuring and cost control - Cost of sales was **RMB 348.6 million**, a **6.2%** year-on-year decrease, primarily due to a corresponding decline in costs as business service revenue decreased[60](index=60&type=chunk) - Gross profit was **RMB 94.4 million**, a **7.0%** year-on-year decrease; gross margin was **21.3%**, a **0.2%** year-on-year decrease[61](index=61&type=chunk) Gross Margin by Business Segment (For the year ended June 30) | Business Segment | 2025 Gross Margin (%) | 2024 Gross Margin (%) | Change (%) | | :--- | :--- | :--- | :--- | | Property management services | 19.1% | 19.4% | -0.3% | | Non-owner value-added services | 26.4% | 19.2% | 7.2% | | Community value-added services | 62.3% | 44.0% | 18.3% | | **Total** | **21.3%** | **21.5%** | **-0.2%** | - Gross margin for non-owner value-added services increased by **7.2%**, and for community value-added services by **18.3%**, primarily due to personnel restructuring and reduced labor costs[63](index=63&type=chunk) [Operating Expenses and Profitability](index=26&type=section&id=Operating%20Expenses%20and%20Profitability) Other income decreased, and net other losses increased; selling and marketing expenses and administrative expenses both significantly declined, but impairment loss on trade and other receivables increased, while net finance income sharply reduced, leading to an **18.6%** year-on-year decrease in net profit for the period - Other income decreased by **39.6%** to **RMB 0.8 million**, primarily due to a decline in government grant income[64](index=64&type=chunk) - Net other losses were **RMB 1.2 million** (H1 2024: net gains of **RMB 0.7 million**), primarily due to losses from derecognizing subsidiaries and associates[65](index=65&type=chunk) - Selling and marketing expenses decreased by **63.5%** to **RMB 2.2 million**, mainly due to the scaling down of non-owner value-added services and community value-added services businesses[66](index=66&type=chunk) - Administrative expenses decreased by **20.2%** to **RMB 31.7 million**, primarily due to organizational restructuring and optimized staffing[67](index=67&type=chunk) - Impairment loss on trade and other receivables increased by **20.8%** to **RMB 13.2 million**, primarily due to increased credit risk from the ongoing downturn in the real estate industry[68](index=68&type=chunk) - Net finance income decreased by **95.6%** to **RMB 0.4 million**, mainly because there was no interest income from loans provided to third parties in the current period[69](index=69&type=chunk) - Net profit for the period was **RMB 34.6 million**, an **18.6%** year-on-year decrease; net profit margin was **7.8%**, a **1.2%** year-on-year decrease[71](index=71&type=chunk) - Basic and diluted earnings per share were **RMB 0.039** per share[72](index=72&type=chunk) [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the Group's cash and cash equivalents decreased by **16.1%** to **RMB 169.6 million**, with a current ratio of **1.9 times** and a gearing ratio of **0.01**, indicating a stable financial position - Cash and cash equivalents were **RMB 169.6 million**, a **16.1%** decrease compared to December 31, 2024[75](index=75&type=chunk) - The current ratio (current assets / current liabilities) was **1.9 times** (December 31, 2024: **2.0 times**)[75](index=75&type=chunk) - Borrowings were **RMB 10.0 million** (December 31, 2024: **RMB 17.0 million**), and the gearing ratio was **0.01** (December 31, 2024: **0.02**)[75](index=75&type=chunk) [Other Information](index=29&type=section&id=Other%20Information) [Risk Management and Commitments](index=29&type=section&id=Risk%20Management%20and%20Commitments) The Group's operations are primarily denominated in RMB, with foreign exchange risk managed by closely monitoring exchange rate fluctuations; as of the reporting period, there were no capital commitments, financial guarantees, or other significant contingent liabilities - The vast majority of the Group's income and expenses are denominated in RMB, and foreign exchange risk is managed by closely monitoring exchange rate fluctuations[76](index=76&type=chunk) - As of June 30, 2025, the Group had no contracted capital commitments for which no provision had been made[77](index=77&type=chunk) - As of June 30, 2025, the Company, its subsidiaries, and associates had not provided any financial guarantees, guarantees for loans, or mortgages, nor did they have any other significant contingent liabilities[78](index=78&type=chunk) [Significant Investments and Subsequent Events](index=29&type=section&id=Significant%20Investments%20and%20Subsequent%20Events) During the reporting period, the Group disposed of a **49% stake** in Shandong Land Group (Heze) Dexin Asset Operation Co., Ltd., realizing **RMB 0.52 million**; subsequent to the period, the Group plans to use net proceeds from the global offering to acquire **100% equity** in Deqing Moganshan Ruijing Real Estate Co., Ltd. to expand business scale and diversify - During the reporting period, the Group disposed of a **49% stake** in Shandong Land Group (Heze) Dexin Asset Operation Co., Ltd., realizing **RMB 0.52 million**[79](index=79&type=chunk) - The Group intends to use part of the net proceeds from the listing to acquire property management companies to expand its business scale and market share[80](index=80&type=chunk) - On July 31, 2025, a subsidiary of the Group agreed to acquire **100% equity** in Deqing Moganshan Ruijing Real Estate Co., Ltd., primarily engaged in hotel operations and management, for **RMB 78 million**[81](index=81&type=chunk) - This acquisition will utilize **HKD 82.4 million** (approximately **RMB 75.0 million**) from the unutilized net proceeds of the global offering, with the remainder funded by internal resources[81](index=81&type=chunk) [Employees and Remuneration Policy](index=30&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had **2,770 employees**, with total staff costs of **RMB 124.8 million** for H1; the Company underwent organizational reform, optimized its structure, and established a comprehensive remuneration and multi-level training system to enhance service quality and organizational efficiency - As of June 30, 2025, the Group's total number of employees remained at **2,770**, with total staff costs for the first half of the year amounting to **RMB 124.8 million**[83](index=83&type=chunk) - In 2025, the Group underwent organizational reform, merging Jiangsu, Shanghai, and Anhui city companies to form the Su-Hu-Wan Regional Company and establishing a new Zhengzhou city company to optimize organizational structure and enhance operational efficiency[83](index=83&type=chunk) - The Group's remuneration system comprehensively considers local salary levels, industry trends, economic inflation, company operational efficiency, and individual employee performance, while providing comprehensive social insurance coverage[84](index=84&type=chunk) - The Group has established a comprehensive, multi-level, and multi-dimensional training system covering the entire employee career cycle, including the "Reserve Project Manager Training Program" and "New Torchbearer Management Trainee Program," and implemented a "Star Butler Certification" system[85](index=85&type=chunk)[86](index=86&type=chunk) [Share Option Scheme and Use of Proceeds](index=32&type=section&id=Share%20Option%20Scheme%20and%20Use%20of%20Proceeds) The Company adopted a share option scheme in 2021, but no options have been granted, exercised, cancelled, or lapsed since its adoption; the use of net proceeds from the global offering has been revised, with some allocated to loans for business partners, and remaining funds planned for business expansion and IT investments, with the expected utilization period extended to June 2026 - The Company adopted a share option scheme on June 21, 2021, but no share options have been granted, exercised, cancelled, or lapsed since its adoption date[87](index=87&type=chunk) - The net proceeds from the global offering were originally **HKD 763.5 million**, with approximately **65.0%** intended for expanding business scale and market share[88](index=88&type=chunk) - The Company previously provided a loan of up to **RMB 315 million** to business partner Hangzhou Ruiyang Supply Chain Management Co., Ltd., with part repaid and the remainder offset by realizing mortgaged assets and acquiring properties[89](index=89&type=chunk)[90](index=90&type=chunk) - As of December 31, 2024, unutilized net proceeds from the global offering amounted to approximately **HKD 138.0 million**, with **HKD 82.4 million** intended for business expansion and **HKD 55.6 million** for information technology investments[91](index=91&type=chunk) - The Directors believe that the acquisition of **100% equity** in Deqing Moganshan Ruijing Real Estate Co., Ltd. aligns with the intended use of proceeds for business expansion and diversification[92](index=92&type=chunk) - The expected timetable for all utilized net proceeds has been extended to on or before June 2026[92](index=92&type=chunk) Use of Net Proceeds from Global Offering and Revised Status (As of June 30, 2025) | Use of Proceeds | IPO Plan (HKD million) | Revised Allocation Dec 16, 2022 (HKD million) | Unutilized Jan 1, 2025 (HKD million) | Utilized During Period (HKD million) | Unutilized June 30, 2025 (HKD million) | Expected Timetable | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Expand business scale and market share | 496.0 | 83.7 | 82.4 | 0 | 82.4 | Before June 2026 | | Diversify and expand service offerings | 76.4 | 7.1 | 0 | 0 | 0 | N/A | | Invest in information technology and internal management systems | 76.4 | 70.2 | 55.6 | 0.6 | 55.0 | Before June 2026 | | Improve human resource management | 38.3 | 12.7 | 0 | 0 | 0 | N/A | | Working capital and general corporate purposes | 76.4 | 7.5 | 0 | 0 | 0 | N/A | | Loans to borrowers | N/A | 342.9 | 0 | 0 | 0 | N/A | | **Total** | **763.5** | **524.1** | **138.0** | **0.6** | **137.4** | | [Corporate Governance and Compliance](index=36&type=section&id=Corporate%20Governance%20and%20Compliance) The Board does not recommend an interim dividend, and the Company repurchased **270,000 shares** during the period; the Group is committed to maintaining high corporate governance standards, complying with the Corporate Governance Code and the Model Code for Securities Transactions by Directors, and its financial statements have been reviewed by the Audit Committee - The Board does not recommend the payment of any interim dividend for the reporting period (H1 2024: none)[94](index=94&type=chunk) - During the reporting period, the Company repurchased a total of **270,000 shares** on the Stock Exchange for a total consideration of **HKD 205,200**[95](index=95&type=chunk)[96](index=96&type=chunk) - The Company has complied with all applicable code provisions set out in the Corporate Governance Code[97](index=97&type=chunk) - All Directors confirm that they have complied with the Model Code for Securities Transactions by Directors of Listed Issuers during the reporting period[98](index=98&type=chunk) - The Company's Audit Committee has reviewed the accounting principles and policies adopted by the Group and discussed internal controls and financial reporting matters for the reporting period[99](index=99&type=chunk)

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 不就因本公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。 建業新生活有限公司 Central China New Life Limited （於 開 曼 群 島 註 冊 成 立 的 有 限 公 司） （股 份 代 號：9983） 截 至2025年6月30日止六個月中期業績公告 – 1 – • 截 至2025年6月30日止六個月的收入為人民幣1,433.8百 萬 元，較2024 年同期的人民幣1,482.9百萬元下降3.3%。 • 截 至2025年6月30日止六個月的淨利潤為人民幣112.2百 萬 元，較 2024年同期的淨利潤人民幣109.2百萬元增加2.8%。 • 截 至2025年6月30日止六個月的本公司股東應佔利潤為人民幣106.2 百 萬 元，較2024年同期的人民幣103.4百萬元增加2.7%。 • 截 至2025年6月30日止六個月的本公司股東應佔核心淨利潤1 為 人 民 幣147 ...