Financial Performance - Revenue for the six months ended June 30, 2025, was RMB 14,787,000, a decrease of 55.4% compared to RMB 33,123,000 in 2024[9]. - Gross profit for the same period was RMB 13,747,000, down 51.5% from RMB 28,330,000 in 2024[9]. - Net loss for the six months was RMB 54,041,000, a reduction of 23.4% compared to RMB 70,560,000 in 2024[9]. - The company's revenue for the reporting period was RMB 148 million, a decrease of 55.4% compared to RMB 331 million for the six months ended June 30, 2024, primarily due to fluctuations in sales volume from the product "Ulitide Long Injection" following a strategic adjustment[58]. - Total operating revenue for the first half of 2025 was RMB 14,787 thousand, a decrease of 55.5% compared to RMB 33,123 thousand in the same period of 2024[113]. - Net loss for the first half of 2025 was RMB 54,041 thousand, an improvement from a net loss of RMB 70,560 thousand in the same period of 2024, representing a reduction of 23.4%[114]. - Basic earnings per share for the first half of 2025 was RMB (0.15), an improvement from RMB (0.20) in the same period of 2024[114]. Research and Development - Research and development expenses amounted to RMB 41,343,000, a decrease of 24.3% from RMB 54,645,000 in 2024[9]. - The company has one commercialized product and 19 items in its research and development pipeline as of the report date[10]. - The core product, Youtidelong injection, was approved by the National Medical Products Administration in 2021 for treating recurrent or metastatic breast cancer[10]. - Clinical trials for new indications of Youtidelong are progressing well, including two Phase III registration studies for non-small cell lung cancer and breast cancer[11]. - The company is expanding its research pipeline, including a Phase II clinical study for first-line treatment of advanced pancreatic cancer[11]. - The company is advancing the development of UTD capsules with ongoing Phase II/III clinical trials for triple-negative breast cancer, advanced gastric cancer, and advanced ovarian cancer[13]. - The company has received IND approval for the Phase II-III trial of UTD capsules in advanced gastric cancer and ovarian cancer, with patient recruitment ongoing[13]. - The ongoing clinical trials reflect the company's commitment to expanding treatment options for patients with difficult-to-treat cancers[31]. Clinical Trials and Product Development - The Phase III trial for UTD injection in HER2-negative breast cancer has enrolled 2/3 of the target patients, with a low incidence of adverse events, indicating good safety[14]. - In the Phase II trial for advanced NSCLC, the overall response rate (ORR) was 19.0% and the disease control rate (DCR) was 81.0%, with a median progression-free survival (PFS) of 4.4 months[15]. - The ongoing Phase III trial for UTD injection in advanced NSCLC has completed approximately 40% of patient enrollment, with manageable adverse events reported[19]. - In the Phase II trial for advanced gastric and esophageal cancer, the combination of UTD with PD-1 inhibitors showed an ORR of 65.2% and a complete response rate (CBR) of 100% in the gastric cancer cohort[19]. - The safety profile of UTD injection in various trials has been favorable, with no treatment-related deaths reported[19]. - The clinical trial of UTD1 combined with bevacizumab for HER2-negative breast cancer brain metastases showed a CNS-ORR of 42.6% and a median PFS of 7.7 months[26]. - The trial for UTD1 combined with capecitabine for breast cancer brain metastases has commenced in the U.S., marking a significant step in the company's international strategy[31]. - The ongoing IIT trial for Uterodalon capsules combined with Capecitabine in advanced breast cancer has shown an ORR of over 54.8% and a CBR of 83.9%[37]. Financial Position and Cash Flow - Cash and cash equivalents as of June 30, 2025, were RMB 468,565,000, a slight increase of 0.4% from RMB 466,636,000 at the end of 2024[9]. - The current ratio improved to 9.8 as of June 30, 2025, compared to 8.8 as of December 31, 2024, indicating better short-term financial stability[70]. - The net value of current assets decreased by 6.8% to RMB 578.1 million as of June 30, 2025, from RMB 620.1 million as of December 31, 2024, due to funding for R&D activities and facility construction[72]. - The company's cash and cash equivalents, along with financial assets, totaled RMB 569.4 million as of June 30, 2025, a decrease of 6.3% from RMB 607.6 million as of December 31, 2024[74]. - Cash inflows from operating activities for the first half of 2025 were RMB 23,955 thousand, down from RMB 38,501 thousand in 2024, representing a decrease of approximately 37.8%[119]. - Cash outflows from operating activities increased to RMB 123,163 thousand in 2025 from RMB 107,963 thousand in 2024, marking an increase of about 14.1%[120]. - The ending cash and cash equivalents balance as of June 30, 2025, was RMB 457,288 thousand, compared to RMB 375,370 thousand at the end of June 2024, indicating an increase of approximately 21.8%[120]. Shareholder Information and Corporate Governance - Tang Li holds a total of 45,304,515 shares, representing 15.86% of the company's total equity, as of June 30, 2025[82]. - Qiu Rongguo also holds 45,304,515 shares, equivalent to 15.86% of the company's total equity, as of June 30, 2025[82]. - Major shareholders include Tang Li and Qiu Rongguo, each with 29.47% and 15.86% of the non-listed shares, respectively[84]. - The company has implemented employee incentive plans in November 2020, January 2021, and January 2022 to recognize and motivate employee contributions[79]. - The company has adopted the corporate governance code of the Hong Kong Stock Exchange as its governance standard[97]. - The board of directors has resolved not to recommend any interim dividend for the six months ended June 30, 2025, consistent with the previous period[102]. Regulatory and Compliance - The company’s financial statements are prepared in accordance with the Chinese Accounting Standards and relevant regulations[128]. - The statutory tax rate for the company's subsidiaries in China is 25%, with a preferential rate of 15% applied during the reporting period[146]. - The company obtained a high-tech enterprise certificate on October 29, 2024, allowing it to enjoy a 15% corporate income tax rate for three years[148]. - The audit committee has reviewed the interim financial statements for the reporting period and confirmed compliance with applicable accounting standards and regulations[104]. - The company plans to enhance communication with compliance advisors to ensure adherence to listing rules and regulations[95].

Financial Performance - Total revenue for the six months ended June 30, 2025, was RMB 328.3 million, a year-on-year increase of 1.3%[9] - Gross profit decreased by 17.3% to RMB 93.3 million compared to RMB 112.7 million in the same period last year[9] - The company reported a loss before tax of RMB 114.6 million, an increase of 36.4% from RMB 84.0 million in the previous year[9] - Adjusted net loss for the period was RMB 74.5 million, a 120.0% increase from RMB 33.8 million in the previous year[9] - Operating loss increased by 36.2% from RMB 84.5 million for the six months ended June 30, 2024, to RMB 115.1 million for the six months ended June 30, 2025[38] - Net loss for the period increased by 37.0% from RMB 82.9 million for the six months ended June 30, 2024, to RMB 113.6 million for the six months ended June 30, 2025[41] - The company reported a basic and diluted loss per share of RMB 1.80, compared to RMB 1.31 in the previous year[121] - The company’s total comprehensive loss for the period was RMB 110,535 thousand, compared to a total comprehensive income of RMB 154,507 thousand in the prior year, highlighting a downturn in overall financial performance[128] User and Market Metrics - The number of registered users reached 34.9 million, while registered drivers totaled 7.1 million[13] - The total gross transaction value (GTV) for the period was RMB 709.2 million, with 5.5 million completed transport orders[13] - The company achieved significant growth in overseas markets, with Hong Kong growing by 15.6% and India by 25.2%[13] - The strategic focus on international expansion resulted in overseas markets contributing 79.2% of total revenue[12] - Revenue from enterprise services reached RMB 233.9 million, reflecting a robust growth of 10.5% year-on-year, and accounted for 71.2% of total revenue[25] Expenses and Cost Management - Sales and marketing expenses decreased by 39.4% from RMB 69.3 million for the six months ended June 30, 2024, to RMB 42.0 million for the six months ended June 30, 2025[31] - General and administrative expenses decreased by 3.7% from RMB 77.4 million for the six months ended June 30, 2024, to RMB 74.5 million for the six months ended June 30, 2025[32] - Research and development expenses increased by 385.3% from RMB 11.6 million for the six months ended June 30, 2024, to RMB 56.3 million for the six months ended June 30, 2025[33] - Employee benefits expenses for the six months ended June 30, 2025, were RMB 79.0 million, a decrease of 15.3% from RMB 93.3 million in 2024[59] Cash Flow and Capital Expenditures - Operating cash used in the first half of 2025 was RMB 115.8 million[20] - Capital expenditures for the six months ended June 30, 2025, amounted to RMB 6.0 million[20] - Cash and cash equivalents amounted to RMB 129.2 million as of June 30, 2025[48] - The company recorded net cash from investing activities of RMB 51,052 thousand for the six months ended June 30, 2025, down from RMB 206,236 thousand in 2024[50] - The ending cash and cash equivalents balance as of June 30, 2025, was RMB 126,389 thousand, down from RMB 359,735 thousand at the end of June 30, 2024, indicating a significant cash reduction[128] Shareholder and Equity Information - Major shareholders include 58同城 with a 37.72% stake and 姚先生 with a 38.59% stake in the company[82] - As of June 30, 2025, the total number of issued ordinary shares was 62,894,739[79] - The company did not declare any interim dividend for the six months ending June 30, 2025[72] - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period[75] Strategic Initiatives and Acquisitions - The company announced the acquisition of 100% equity in Bestar Information Technology Co., Ltd. for HKD 11,922,600 on June 12, 2025[64] - The company aims to seek strategic alliances, investments, and acquisitions in overseas markets, with 20% of the proceeds (HKD 110.9 million) allocated for this purpose[76] - On August 12, 2025, the company completed the acquisition of 100% equity of BITS Solution Limited for a total consideration of HKD 11,922,600, enhancing its capabilities in AI chatbot systems and CRM integration[196] Financial Position and Assets - Total assets decreased to RMB 486,490 thousand from RMB 621,118 thousand at the end of 2024, reflecting a decline of 21.7%[122] - Total liabilities decreased to RMB 300,596 thousand from RMB 324,304 thousand, a reduction of 7.3%[124] - The company’s equity attributable to owners decreased to RMB 189,058 thousand from RMB 299,426 thousand, a decline of 37.0%[122] - The company recognized an impairment loss of RMB 39,000,000 on goodwill during the six months ended June 30, 2025[160] Stock Options and Incentive Plans - The company granted a total of 10,413,446 stock options under the share incentive plan prior to its listing on June 24, 2022[108] - As of June 30, 2025, the number of unexercised stock options granted was 7,638,624, with an average exercise price ranging from $0.001 to $7.8[111] - The company has not granted any new stock options or incentives under the share incentive plan during the reporting period, resulting in zero potential shares to be issued[115] - The total number of stock options under the GoGoVan Cayman plan is capped at 14,901,508 shares, with a vesting period of three years[179] Related Party Transactions - The company provided services to related parties, generating RMB 37 thousand in revenue for the six months ended June 30, 2025[192] - The company incurred rental expenses of RMB 1,919 thousand to entities controlled by Daojia Limited for the six months ended June 30, 2025[192] - The company has maintained a consistent approach to related party transactions, with receivables and payables reflecting stable operational relationships[193]

2025 中報 2025 Interim Report 目錄 | 2 | 公司資料 | | --- | --- | | 4 | 財務摘要 | | 5 | 管理層討論及分析 | | 16 | 其他資料 | | 26 | 中期簡明綜合損益及其他全面收益表 | | 27 | 中期簡明綜合財務狀況表 | | 29 | 中期簡明綜合權益變動表 | | 30 | 中期簡明綜合現金流量表 | | 32 | 中期簡明綜合財務資料附註 | | 45 | 釋義 | 1 上海百心安生物技術股份有限公司 二零二四年年報 公司資料 董事會 執行董事 汪立先生 （董事長、首席執行官兼總經理） 王雲磬先生 （首席財務官、董事會秘書兼聯席公司秘書） 王佩麗女士 獨立非執行董事 陳軼青先生 魯旭波先生 蔣一斐先生 審核委員會 陳軼青先生 （主席） 魯旭波先生 蔣一斐先生 薪酬委員會 魯旭波先生 （主席） 陳軼青先生 蔣一斐先生 提名委員會 蔣一斐先生 （主席） 魯旭波先生 王佩麗女士 （於2025年3月28日任命） 汪立先生 （2025年3月28日起不再擔任成員） 監事 蔡濤先生 （主席） 朱磊先生 王君毅先生 聯席公司秘書 王雲磬先生 郭兆 ...

[Company Information](index=3&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) [Board of Directors and Management](index=3&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E5%8F%8A%E7%AE%A1%E7%90%86%E5%B1%A4) This section discloses the composition of the company's Board of Directors (including executive, non-executive, and independent non-executive directors), Supervisory Committee, and various committees (Audit, Nomination, Remuneration and Appraisal, Strategy) - The Board of Directors includes executive directors Dr. WANG QINGHUA (Chairman), Ms. JIANG Fan, Ms. XU Wenjie, Mr. HUANG Bing; non-executive directors Mr. HO KYUNG SHIK, Mr. HENG Lei; and independent non-executive directors Mr. TAO Wuping, Dr. SONG Ruilin, Mr. CHEN Xiangrong[4](index=4&type=chunk) - The Supervisory Committee members include Mr. LE Jianjun, Dr. LI Yuanpeng, and Ms. SHAO Anna[4](index=4&type=chunk) - Mr. CHEN Xiangrong chairs the Audit Committee, Dr. WANG QINGHUA chairs the Nomination Committee, Mr. TAO Wuping chairs the Remuneration and Appraisal Committee, and Dr. WANG QINGHUA chairs the Strategy Committee[4](index=4&type=chunk) [Registration and Contact Information](index=3&type=section&id=%E6%B3%A8%E5%86%8C%E5%8A%9E%E4%BA%8B%E5%A4%84) This section provides detailed contact information including the company's registered office, headquarters and principal place of business in China, principal place of business in Hong Kong, compliance adviser, legal advisers, auditor, H Share registrar, principal bankers, stock code, and company website - The registered office and principal place of business in China are both located at Room 409, Block H, Creative Building, Self-numbered No. 2 Tengfei 2nd Street, Sino-Singapore Guangzhou Knowledge City, Huangpu District, Guangzhou, Guangdong Province, China[4](index=4&type=chunk) - The principal place of business in Hong Kong is located at 40/F, Dah Sing Financial Centre, 248 Queen's Road East, Wan Chai, Hong Kong[4](index=4&type=chunk) - The auditor is Ernst & Young, and the H Share registrar is Tricor Investor Services Limited[5](index=5&type=chunk) - The company's stock code is **2591**, and its website is www.innogenpharm.com[5](index=5&type=chunk) [Financial Highlights](index=5&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) [Key Financial Data](index=5&type=section&id=%E8%B4%A2%E5%8A%A1%E6%91%98%E8%A6%81%E8%A1%A8%E6%A0%BC) For the six months ended June 30, 2025, the company recorded its first revenue of **RMB 56,446 thousand**, but loss for the period expanded to **RMB 122,470 thousand**, primarily due to increased R&D and selling expenses, with net assets decreasing from the end of 2024 Key Financial Data for the Six Months Ended June 30, 2025 (RMB thousand) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | 56,446 | – | N/A | | Cost of sales | (5,956) | – | N/A | | Gross profit | 50,490 | – | N/A | | Other income and gains | 5,242 | 12,104 | -56.69% | | R&D expenses | (99,082) | (51,905) | +90.89% | | Administrative expenses | (31,555) | (30,098) | +4.84% | | Selling and distribution expenses | (44,038) | – | N/A | | Loss before tax | (122,470) | (75,275) | +62.69% | | Loss for the period | (122,470) | (75,275) | +62.69% | Balance Sheet Summary as of June 30, 2025 and December 31, 2024 (RMB thousand) | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Non-current assets | 81,805 | 95,585 | -14.32% | | Current assets | 857,088 | 839,215 | +2.13% | | Non-current liabilities | 14,456 | 72 | +19977.78% | | Current liabilities | 241,718 | 138,257 | +74.84% | | Net assets | 682,719 | 796,471 | -14.30% | [Management Discussion and Analysis](index=6&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) [Business Review](index=6&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) Since its establishment, the company has focused on drug pipelines for diabetes and other metabolic diseases, with its core product, Isepaglutide α, approved and commercialized in China, while actively pursuing global expansion and multi-indication clinical trials - Since its establishment in 2014, the company has built a pipeline of drug candidates for diabetes and other metabolic diseases, with **Isepaglutide α** as its core product[7](index=7&type=chunk) - Isepaglutide α was approved in China in January 2025 for the treatment of Type 2 Diabetes (T2D) and commercialized in February 2025[7](index=7&type=chunk)[11](index=11&type=chunk) - Isepaglutide α received BLA approval in Macau in June 2025, with BLA applications submitted in Southeast Asian countries and planned submissions in Latin America in the second half of the year[8](index=8&type=chunk)[11](index=11&type=chunk) - Phase IIb/III clinical trials for Isepaglutide α in obesity and overweight started in China in March 2025, expected to complete in Q4 2026; Phase II clinical trials commenced in Australia in August 2025 with the first patient enrolled[8](index=8&type=chunk)[12](index=12&type=chunk) - IND for Isepaglutide α in MASH was approved by FDA (March 2023) and NMPA (March 2025), with plans to initiate multi-center Phase IIa clinical trials in the US and China in 2026[8](index=8&type=chunk)[14](index=14&type=chunk) - Early-stage pipeline includes YN014 (AD), YN401 (T1D/T2D), YN209 (MASH), YN203 (T2D), and YN202 (obesity and overweight), all in IND preparation or submission phase, with IND applications expected in 2025-2026[8](index=8&type=chunk)[15](index=15&type=chunk)[16](index=16&type=chunk) [Financial Review](index=9&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) During the reporting period, the company achieved its first revenue of **RMB 56.4 million**, primarily from Isepaglutide α sales, with a **gross margin of 89.4%**, but increased R&D and selling and distribution expenses led to an expanded loss for the period - For the six months ended June 30, 2025, the company's revenue was **RMB 56.4 million**, primarily from the sales of Isepaglutide α in the Chinese market[21](index=21&type=chunk) - Cost of sales was **RMB 6.0 million**, gross profit was **RMB 50.5 million**, and the **gross margin was 89.4%**, mainly because manufacturing costs prior to commercial launch were recognized as R&D expenses[22](index=22&type=chunk)[23](index=23&type=chunk) Details of Other Income and Gains (RMB thousand) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Total other income and gains | 5,242 | 12,104 | -56.69% | | Of which: Gain on termination of lease contracts | – | 4,152 | -100% | | Investment income from financial assets | 3,169 | 5,418 | -41.51% | - R&D expenses increased by **90.89%** from **RMB 51.9 million** in the same period of 2024 to **RMB 99.1 million** in 2025, primarily due to increased raw material costs for Isepaglutide α production process improvements and CRO fees for clinical trials[28](index=28&type=chunk) - Administrative expenses remained relatively stable, increasing from **RMB 30.1 million** in the same period of 2024 to **RMB 31.6 million** in 2025[30](index=30&type=chunk) - Selling and distribution expenses increased from zero in the same period of 2024 to **RMB 44.0 million** in 2025, mainly due to marketing and promotion and the expansion of the commercialization team after the launch of Isepaglutide α[31](index=31&type=chunk) - Other expenses decreased from **RMB 4.5 million** in the same period of 2024 to **RMB 3.1 million** in 2025, primarily due to losses from the disposal of pilot production facilities and equipment in 2024, while in 2025 mainly due to impairment losses on prepayments and donations[32](index=32&type=chunk) - Finance costs decreased from **RMB 0.9 million** in the same period of 2024 to **RMB 0.4 million** in 2025, mainly due to reduced interest expenses on lease liabilities after the termination of the Shanghai factory lease[33](index=33&type=chunk) [Liquidity and Capital Resources](index=13&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E6%BA%90) The company's net current assets decreased due to increased current liabilities, particularly trade payables, leading to a higher gearing ratio and a significant increase in interest-bearing bank borrowings to support operations - Net current assets decreased from **RMB 701.0 million** as of December 31, 2024, to **RMB 615.4 million** as of June 30, 2025, primarily due to an increase in current liabilities[34](index=34&type=chunk) - Current liabilities increased from **RMB 138.3 million** as of December 31, 2024, to **RMB 241.7 million** as of June 30, 2025, mainly due to increased payables for CDMO production and process improvement services[34](index=34&type=chunk) - As of June 30, 2025, the gearing ratio was approximately **27%**, higher than **15%** as of December 31, 2024[35](index=35&type=chunk) - Interest-bearing bank borrowings increased from **RMB 9.9 million** as of December 31, 2024, to **RMB 40.0 million** as of June 30, 2025, primarily from new commercial bank borrowings[36](index=36&type=chunk) - As of June 30, 2025, the company had no significant investments, no major mergers and acquisitions, no contingent liabilities, and capital commitments of **RMB 28.2 million**[37](index=37&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk) - The company faces foreign exchange risk, but currently has no hedging policy, and management will continue to monitor it[43](index=43&type=chunk) [Employee Remuneration and Relationships](index=14&type=section&id=%E5%83%B1%E5%93%A1%E8%96%AA%E9%85%AC%E5%8F%8A%E9%97%9C%E4%BF%82) As of June 30, 2025, the company had 105 employees, with total remuneration costs significantly increasing due to the expansion of the commercialization team, emphasizing talent recruitment, training, competitive compensation, and equity incentives - As of June 30, 2025, the Group had **105 employees**, with total remuneration costs significantly increasing to **RMB 45.7 million** from **RMB 28.6 million** in the same period, primarily due to the expansion of the commercialization team[44](index=44&type=chunk) - The commercialization team comprises **84 members**, including **39 internal staff** and **45 outsourced team members**[44](index=44&type=chunk) - The company enters into individual employment contracts with employees covering salaries, bonuses, benefits, confidentiality obligations, and intellectual property ownership, also offering equity incentives and promotion opportunities[45](index=45&type=chunk) [Post-Reporting Period Events and Future Developments](index=15&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) Post-reporting period, the company's H shares were listed on the HKEX Main Board on August 15, 2025, with net proceeds of approximately HKD 634.7 million, which will be used to advance Isepaglutide α's global expansion, multi-indication clinical development, and inclusion in the National Medical Insurance Drug List - On August 15, 2025, the company's H shares were listed on the Main Board of the Stock Exchange, with a global offering of **36,556,400 H shares** at an offer price of **HKD 18.68 per share**[46](index=46&type=chunk)[48](index=48&type=chunk) - The net proceeds from the global offering were approximately **HKD 634.7 million**, to be used for the purposes stated in the prospectus, with no changes to the intended use[48](index=48&type=chunk)[49](index=49&type=chunk) - Looking ahead to the second half of 2025, the company plans to actively advance the global expansion of Isepaglutide α for T2D treatment, progress its clinical development for obesity and overweight indications, and continue efforts for its inclusion in the National Medical Insurance Drug List[47](index=47&type=chunk) - The Board does not recommend the payment of an interim dividend for the interim report[50](index=50&type=chunk) [Corporate Governance and Other Information](index=17&type=section&id=%E5%85%AC%E5%8F%B8%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) [Compliance with Corporate Governance Code](index=17&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The company has adopted and complied with the Corporate Governance Code since its listing date, with the Chairman and CEO roles held by Dr. WANG QINGHUA, an arrangement the Board believes enhances strategic planning and decision-making efficiency - The company has adopted and complied with the principles and code provisions of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules since its listing date[51](index=51&type=chunk) - Dr. WANG QINGHUA serves concurrently as the Chairman and General Manager of the company, an arrangement the Board believes ensures internal leadership consistency and efficiency in strategic planning and implementation[51](index=51&type=chunk) [Standard Securities Dealing Code for Directors and Supervisors](index=17&type=section&id=%E9%81%B5%E5%AE%88%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) Since its listing date, the company has adopted a code of conduct no less stringent than the Standard Code, confirming that all directors and supervisors have complied with it - The company has adopted the Standard Code and established a code of conduct no less stringent than the Standard Code to regulate securities dealings by directors, supervisors, and relevant employees since its listing date[53](index=53&type=chunk) - Following inquiry, all directors and supervisors confirmed their continuous compliance with the code of conduct since the listing date[54](index=54&type=chunk) [Disclosure of Interests of Directors, Supervisors and Chief Executive](index=18&type=section&id=%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%A3%E4%BA%8B%E5%8F%8A%E6%9C%80%E9%AB%98%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%93%A1%E5%9C%A8%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%88%96%E5%85%B6%E7%9B%B8%E8%81%AF%E6%B3%95%E5%9C%98%E4%B9%8B%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E5%8F%8A%E5%82%B5%E6%AC%8A%E8%AD%89%E4%B9%8B%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) As of June 30, 2025, H shares were not yet listed, but disclosed Dr. WANG QINGHUA's beneficial ownership, controlled corporate interests, and joint interests in the company's unlisted shares and H shares, totaling approximately **33.19%** of the total issued share capital - As of June 30, 2025, H shares were not yet listed, thus Part XV of the Securities and Futures Ordinance was not applicable[56](index=56&type=chunk) Dr. WANG QINGHUA's Shareholding (as of the date of this Interim Report) | Nature of Interest | Class of Shares | Number of Shares (L) | Approximate Percentage of Shareholding in Relevant Class | Approximate Percentage of Total Issued Share Capital | | :--- | :--- | :--- | :--- | :--- | | Beneficial Owner | Unlisted Shares | 9,243,911 | 25.30% | 10.12% | | | H Shares | 36,975,645 | 8.80% | | | Interest in Controlled Corporation | Unlisted Shares | 15,624,993 | 42.77% | 17.10% | | | H Shares | 62,499,977 | 14.87% | | | Jointly Held Interest with Another Person | Unlisted Shares | 5,450,720 | 14.92% | 5.97% | | | H Shares | 21,802,880 | 5.19% | | - Dr. WANG QINGHUA, through beneficial ownership, controlled corporate interests, and acting-in-concert agreements, collectively holds approximately **33.19%** (10.12% + 17.10% + 5.97%) of the company's total issued share capital[56](index=56&type=chunk)[59](index=59&type=chunk) [Disclosure of Interests of Substantial Shareholders](index=19&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E6%96%BC%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%82%A1%E4%BB%BD%E5%8F%8A%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E4%B8%AD%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) This section discloses substantial shareholders, excluding directors, supervisors, and the chief executive, holding 5% or more of the company's shares or related shares, including various investment entities and individuals - As of June 30, 2025, H shares were not yet listed on the Stock Exchange, therefore the provisions of Part XV of the Securities and Futures Ordinance were not applicable to the company[58](index=58&type=chunk) Substantial Shareholders' Shareholding (as of the date of this Interim Report) | Name / Designation | Nature of Interest | Class of Shares | Number of Shares1 | Approximate Percentage of Shareholding in Relevant Class2 | Approximate Percentage of Total Issued Share Capital3 | | :--- | :--- | :--- | :--- | :--- | :--- | | Hong Kong Innogen Pharmaceutical Technology Co., Ltd. | Beneficial Owner | Unlisted Shares | 2,550,044 (L) | 6.98% | 2.79% | | Hong Kong Yiyun Pharmaceutical Technology Co., Ltd. | Beneficial Owner | Unlisted Shares | 5,450,720 (L) | 14.92% | 5.97% | | Shanghai Nuotang Biotechnology Co., Ltd. | Interest in Controlled Corporation | Unlisted Shares | 13,074,949 (L) | 35.79% | 14.31% | | Jingde (Guangzhou) Equity Investment Partnership (Limited Partnership) | Beneficial Owner | H Shares | 26,556,444 (L) | 6.32% | 5.81% | | KIP KIS SEA-CHINA Fund | Interest in Controlled Corporation | H Shares | 26,556,444 (L) | 6.32% | 5.81% | | KOREA INVESTMENT & SECURITIES Co., Ltd | Interest in Controlled Corporation | H Shares | 26,556,444 (L) | 6.32% | 5.81% | | Korea Investment Partners (Shanghai) Venture Capital Management Co., Ltd. | Interest in Controlled Corporation | H Shares | 41,731,556 (L) | 9.93% | 9.14% | | KOREA INVESTMENT PARTNERS Co., Ltd. | Interest in Controlled Corporation | H Shares | 41,731,556 (L) | 9.93% | 9.14% | | KOREA INVESTMENT HOLDINGS Co., Ltd. | Interest in Controlled Corporation | H Shares | 41,731,556 (L) | 9.93% | 9.14% | | Cowin China Growth Fund II, L.P. | Beneficial Owner | H Shares | 26,556,444 (L) | 6.32% | 5.81% | | ZHENG Weihe | Interest in Controlled Corporation | H Shares | 43,971,131 (L) | 10.46% | 9.63% | | HUANG Li | Interest in Controlled Corporation | H Shares | 43,971,131 (L) | 10.46% | 9.63% | | Palace Investments Pte. Ltd. | Beneficial Owner | H Shares | 25,344,931 (L) | 6.03% | 5.55% | | Temasek Holdings (Private) Limited | Interest in Controlled Corporation | H Shares | 25,344,931 (L) | 6.03% | 5.55% | | Guangzhou Industrial Investment Biomedical and Health Special Parent Fund Partnership (Limited Partnership) | Beneficial Owner | H Shares | 22,594,783 (L) | 5.38% | 4.95% | | Guangzhou Industrial Investment Holding Group Co., Ltd. | Interest in Controlled Corporation | H Shares | 22,594,783 (L) | 5.38% | 4.95% | | CICC Qide (Xiamen) Innovative Biomedical Venture Capital Partnership (Limited Partnership) | Beneficial Owner | Unlisted Shares | 2,353,008 (L) | 6.44% | 0.52% | | Henan Provincial Department of Finance | Interest in Controlled Corporation | Unlisted Shares | 2,353,008 (L) | 6.44% | 0.52% | | Jiangsu Taizhou Everbright Industrial Investment Partnership (Limited Partnership) | Beneficial Owner | Unlisted Shares | 2,413,342 (L) | 6.61% | 0.53% | | China Everbright Limited | Interest in Controlled Corporation | Unlisted Shares | 2,413,342 (L) | 6.61% | 0.53% | [Public Float](index=26&type=section&id=%E8%B6%B3%E5%A4%A0%E5%85%AC%E7%9C%BE%E6%8C%81%E8%82%A1%E9%87%8F) As of September 26, 2025, the company maintained a sufficient public float as required by the Listing Rules - As of September 26, 2025, the company maintained a sufficient public float of at least **25%** as required by the Listing Rules[71](index=71&type=chunk) [Audit Committee Review](index=27&type=section&id=%E5%AF%A9%E8%A8%88%E5%A7%94%E5%93%A1%E6%9C%83%E5%AF%A9%E9%96%B1) The Audit Committee has reviewed the unaudited interim financial information for the reporting period and deemed it compliant with relevant accounting standards and regulations - The Audit Committee has reviewed the unaudited interim financial information for the reporting period and the accounting principles and practices adopted by the Group as set out in this interim report[72](index=72&type=chunk) - The Audit Committee is of the opinion that the Group's unaudited interim financial information for the reporting period complies with relevant accounting standards, laws, and regulations[72](index=72&type=chunk) [Dealings in Listed Securities](index=27&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) From the listing date to the date of this interim report, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities, nor held any treasury shares - From the listing date to the date of this interim report, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[73](index=73&type=chunk) - From the listing date to the date of this interim report, the company held no treasury shares[74](index=74&type=chunk) [Interests in Competing Business](index=27&type=section&id=%E6%96%BC%E7%AB%B6%E7%88%AD%E6%A5%AD%E5%8B%99%E7%9A%84%E6%AC%8A%E7%9B%8A) From the company's H share listing date to the date of this interim report, no director or supervisor had any disclosable direct or indirect interest in any business competing or likely to compete with the Group's business - From the company's H share listing date to the date of this interim report, no director or supervisor had any disclosable direct or indirect interest in any business competing or likely to compete with the Group's business[75](index=75&type=chunk) [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=28&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E5%85%A5%E8%A1%A8) [Profit or Loss Statement Overview](index=28&type=section&id=%E6%8D%9F%E7%9B%8A%E8%A1%A8%E6%A6%82%E8%A7%88) For the six months ended June 30, 2025, the company recorded its first revenue of **RMB 56,446 thousand**, but due to significant increases in R&D, selling, and distribution expenses, the loss for the period expanded to **RMB 122,470 thousand** Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (RMB thousand) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | 56,446 | – | N/A | | Cost of sales | (5,956) | – | N/A | | Gross profit | 50,490 | – | N/A | | Other income and gains | 5,242 | 12,104 | -56.69% | | R&D expenses | (99,082) | (51,905) | +90.89% | | Administrative expenses | (31,555) | (30,098) | +4.84% | | Selling and distribution expenses | (44,038) | – | N/A | | Loss before tax | (122,470) | (75,275) | +62.69% | | Loss for the period | (122,470) | (75,275) | +62.69% | | Loss per share attributable to ordinary equity holders of the parent (RMB) | (0.29) | (0.18) | +61.11% | [Interim Condensed Consolidated Statement of Financial Position](index=29&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) [Balance Sheet Overview](index=29&type=section&id=%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8%E6%A6%82%E8%A7%88) As of June 30, 2025, total assets slightly increased, but current and non-current liabilities significantly rose, leading to a decrease in net assets, while cash and cash equivalents remained stable Interim Condensed Consolidated Statement of Financial Position (RMB thousand) | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Non-current assets | 81,805 | 95,585 | -14.32% | | Current assets | 857,088 | 839,215 | +2.13% | | **Total assets** | **938,893** | **934,800** | **+0.44%** | | Non-current liabilities | 14,456 | 72 | +19977.78% | | Current liabilities | 241,718 | 138,257 | +74.84% | | **Total liabilities** | **256,174** | **138,329** | **+85.19%** | | Net assets | 682,719 | 796,471 | -14.30% | | Cash and cash equivalents | 538,292 | 526,511 | +2.24% | [Interim Condensed Consolidated Statement of Changes in Equity](index=30&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) [Equity Changes Overview](index=30&type=section&id=%E6%9D%83%E7%9B%8A%E5%8F%98%E5%8A%A8%E6%A6%82%E8%A7%88) As of June 30, 2025, the company's total equity decreased to **RMB 682,719 thousand** due to the loss for the period and share-based payments Interim Condensed Consolidated Statement of Changes in Equity (RMB thousand) | Metric | June 30, 2025 | January 1, 2024 | Change | | :--- | :--- | :--- | :--- | | Total equity at beginning of period | 796,471 | 705,125 | +12.95% | | Total comprehensive loss for the period | (122,470) | (75,275) | +62.69% | | Equity-settled share-based payments recognized | 8,718 | 4,764 | +83.00% | | Shares issued | – | 250,000 | -100% | | Total equity at end of period | 682,719 | 884,614 | -22.82% | [Interim Condensed Consolidated Statement of Cash Flows](index=31&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) [Cash Flow Overview](index=31&type=section&id=%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E6%A6%82%E8%A7%88) For the six months ended June 30, 2025, net cash used in operating activities was **RMB 86,852 thousand**, net cash generated from investing activities was **RMB 72,342 thousand**, net cash generated from financing activities was **RMB 26,478 thousand**, resulting in a net increase in cash and cash equivalents of **RMB 11,968 thousand** at period-end Interim Condensed Consolidated Statement of Cash Flows (RMB thousand) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Net cash used in operating activities | (86,852) | (80,052) | +8.50% | | Net cash generated from investing activities | 72,342 | 137,477 | -47.40% | | Net cash generated from financing activities | 26,478 | 247,322 | -89.29% | | Net increase in cash and cash equivalents | 11,968 | 304,747 | -96.07% | | Cash and cash equivalents at end of period | 538,292 | 462,651 | +16.35% | [Notes to the Interim Condensed Consolidated Financial Information](index=33&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) [Company Information and Basis of Preparation](index=33&type=section&id=1.%20%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) The company, established in China in 2014, primarily engages in pharmaceutical product R&D and commercialization, with its H shares listed on the HKEX Main Board on August 15, 2025. The interim financial information is prepared in accordance with HKAS 34 and newly adopted revised HKFRSs, with no significant impact - The company was established in China on December 5, 2014, primarily engaged in pharmaceutical product research and development and commercialization[81](index=81&type=chunk)[82](index=82&type=chunk) - The company's H shares were listed on the Main Board of the Stock Exchange on August 15, 2025[83](index=83&type=chunk) - The interim condensed consolidated financial information is prepared in accordance with Hong Kong Accounting Standard 34 and newly adopted revised Hong Kong Financial Reporting Standards, with no significant impact on the financial information[84](index=84&type=chunk)[85](index=85&type=chunk)[86](index=86&type=chunk) [Operating Segments and Geographical Information](index=34&type=section&id=3.%20%E7%B6%93%E7%87%9F%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The company operates as a single operating segment, focusing solely on pharmaceutical sales, and does not present geographical information as almost all non-current assets and revenue are derived from China - The Group's business is solely the sale of pharmaceutical products, and the chief operating decision-maker reviews overall performance, thus there is only a single operating segment[87](index=87&type=chunk) - Almost all non-current assets and all revenue are derived from China, therefore no geographical information is presented[88](index=88&type=chunk) [Details of Revenue, Other Income and Gains](index=34&type=section&id=4.%20%E6%94%B6%E5%85%A5%E3%80%81%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A) For the six months ended June 30, 2025, the company recorded its first revenue from customer contracts of **RMB 56,446 thousand**, entirely from mainland China pharmaceutical sales, while total other income and gains decreased by **56.69%** year-on-year due to lower gain on lease termination and investment income in 2024 Revenue Details (RMB thousand) | Category | 2025 | 2024 | | :--- | :--- | :--- | | Revenue from contracts with customers | 56,446 | – | | Sales of pharmaceutical products | 56,446 | – | | Mainland China | 56,446 | – | Details of Other Income and Gains (RMB thousand) | Category | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Investment income from financial assets at fair value through profit or loss | 3,169 | 5,418 | -41.51% | | Bank interest income | 1,892 | 1,848 | +2.38% | | Gain on termination of lease contracts | – | 4,152 | -100% | | Total other income and gains | 5,242 | 12,104 | -56.69% | [Details of Other Expenses](index=35&type=section&id=5.%20%E5%85%B6%E4%BB%96%E9%96%8B%E6%94%AF) Other expenses decreased from **RMB 4,503 thousand** in the same period of 2024 to **RMB 3,102 thousand** in 2025, primarily due to losses from the disposal of property and equipment in 2024, while 2025 mainly saw impairment losses on prepayments and donations Details of Other Expenses (RMB thousand) | Category | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Impairment losses, net of reversal | 1,574 | 45 | +3400% | | Loss on disposal of property and equipment | – | 4,451 | -100% | | Donations | 1,341 | – | N/A | | Total | 3,102 | 4,503 | -31.11% | [Components of Loss Before Tax](index=36&type=section&id=6.%20%E9%99%A4%E7%A8%85%E5%89%8D%E虧%E6%90%8D) Loss before tax was primarily influenced by depreciation and amortization, lease-related expenses, listing expenses, exchange losses, and significantly increased employee benefit expenses Components of Loss Before Tax (RMB thousand) | Category | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 1,337 | 1,282 | +4.29% | | Amortisation of intangible assets | 2,225 | 6,079 | -63.40% | | Depreciation of right-of-use assets | 560 | 2,248 | -75.00% | | Interest on lease liabilities | 149 | 858 | -82.63% | | Listing expenses | 9,794 | – | N/A | | Total employee benefit expenses | 45,690 | 28,551 | +60.03% | | Of which: Share-based payment expenses | 8,718 | 4,764 | +83.00% | [Details of Finance Costs](index=36&type=section&id=7.%20%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) Finance costs decreased by **51.20%** year-on-year, mainly due to a significant reduction in interest on lease liabilities, while interest on bank and other borrowings increased Details of Finance Costs (RMB thousand) | Category | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Interest on bank and other borrowings | 276 | 15 | +1740% | | Interest on lease liabilities | 149 | 858 | -82.63% | | Total | 425 | 873 | -51.20% | [Income Tax and Dividends](index=37&type=section&id=8.%20%E6%89%80%E5%BE%97%E7%A8%85) The company's Chinese subsidiaries are subject to a 25% corporate income tax rate, with no income tax expense recognized during the reporting period, and no dividends paid or declared - The corporate income tax rate for Chinese subsidiaries is **25%**[94](index=94&type=chunk) - No income tax expense was recognized during the reporting period[76](index=76&type=chunk) - The company neither paid nor declared any dividends for the six months ended June 30, 2025[95](index=95&type=chunk) [Loss Per Share](index=37&type=section&id=10.%20%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%99%AE%E9%80%9A%E6%AC%8A%E7%9B%8A%E6%8C%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%94%E6%AF%8F%E8%82%A1%E虧%E6%90%8D) For the six months ended June 30, 2025, basic and diluted loss per share was **RMB 0.29**, an increase from **RMB 0.18** in the same period of 2024 Loss Per Share Calculation (RMB/share) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Loss attributable to ordinary equity holders of the parent (RMB thousand) | (122,470) | (75,275) | +62.69% | | Weighted average number of ordinary shares in issue during the period (thousand shares) | 420,263 | 419,021 | +0.30% | | Basic and diluted loss per share (RMB/share) | (0.29) | (0.18) | +61.11% | - The Group had no potentially dilutive ordinary shares in issue, thus the basic loss per share amount was not adjusted[97](index=97&type=chunk) [Property, Plant and Equipment](index=37&type=section&id=11.%20%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99) During the reporting period, the company incurred **RMB 4,160 thousand** in costs for purchasing property, plant, and equipment, with no impairment losses recognized - For the six months ended June 30, 2025, the Group's cost for purchasing property, plant, and equipment was **RMB 4,160 thousand**[99](index=99&type=chunk) - No impairment losses were recognized during the reporting period[100](index=100&type=chunk) [Leases](index=38&type=section&id=12.%20%E7%A7%9F%E8%B3%83) As a lessee, the company primarily leases office buildings for 5 to 10 years, with new right-of-use assets and lease liabilities recognized during the reporting period, along with related depreciation and interest expenses - The Group has entered into lease contracts for office buildings used in its operations, with lease terms generally ranging from **5 to 10 years**[101](index=101&type=chunk) Changes in Right-of-Use Assets (RMB thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | At beginning of period | – | 36,863 | | Additions | 17,906 | – | | Depreciation expense | (560) | (2,248) | | At end of period | 17,346 | – | Changes in Lease Liabilities (RMB thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Carrying amount at beginning of period | – | 45,586 | | Additions | 17,906 | – | | Interest accretion recognized during the period | 149 | 858 | | Lease payments | (1,174) | (1,663) | | Carrying amount at end of period | 16,881 | – | [Prepayments and Other Receivables](index=39&type=section&id=13.%20%E9%A0%90%E4%BB%98%E6%AC%BE%E9%A0%85%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) Non-current prepayments and other receivables decreased, while current prepayments and other receivables significantly increased, primarily driven by growth in recoverable VAT, supplier prepayments, and other receivables Prepayments and Other Receivables (RMB thousand) | Category | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Non-current total | 24,608 | 58,191 | -57.71% | | Current total (net of impairment allowance) | 77,463 | 13,300 | +482.43% | | Of which: Other receivables | 53,256 | 1,215 | +4283.13% | | Impairment allowance | (1,726) | (165) | +946.06% | [Trade Receivables](index=40&type=section&id=14.%20%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, the company recorded its first trade receivables of **RMB 8,599 thousand**, all due within one year Ageing Analysis of Trade Receivables (RMB thousand) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within one year | 8,599 | – | [Financial Assets at Fair Value Through Profit or Loss](index=40&type=section&id=15.%20%E6%8C%89%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E8%A8%88%E5%85%A5%E6%90%8D%E7%9B%8A%E7%9A%84%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2) The company's wealth management products are mandatorily classified as financial assets at fair value through profit or loss, amounting to **RMB 150,040 thousand** as of June 30, 2025, a decrease from the end of 2024 Financial Assets at Fair Value Through Profit or Loss (RMB thousand) | Category | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Wealth management products | 150,040 | 225,192 | -33.37% | - These wealth management products, issued by mainland Chinese banks, are mandatorily classified as financial assets at fair value through profit or loss because their contractual cash flows are not solely payments of principal and interest[105](index=105&type=chunk) [Cash and Cash Equivalents](index=40&type=section&id=16.%20%E7%8F%BE%E9%87%91%E5%8F%8A%E7%8F%BE%E9%87%91%E7%AD%89%E5%83%B9%E7%89%A9) As of June 30, 2025, the company's cash and cash equivalents totaled **RMB 538,292 thousand**, a slight increase from the end of 2024, all denominated in RMB Cash and Cash Equivalents (RMB thousand) | Category | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Cash at bank | 538,322 | 526,541 | +2.24% | | Pledged deposits | 30 | 30 | 0% | | Cash and cash equivalents | 538,292 | 526,511 | +2.24% | [Trade Payables](index=41&type=section&id=17.%20%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, trade payables significantly increased to **RMB 136,312 thousand**, all due within one year Ageing Analysis of Trade Payables (RMB thousand) | Ageing | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Within one year | 136,312 | 91,045 | +49.72% | [Other Payables and Accruals](index=41&type=section&id=18.%20%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85%E5%8F%8A%E6%87%89%E8%A8%88%E8%B2%BB%E7%94%A8) Current other payables and accruals significantly increased, primarily due to growth in accrued meeting expenses, CSO deposits, and other payables Other Payables and Accruals (RMB thousand) | Category | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Non-current other payables | 72 | 72 | 0% | | Current total | 62,884 | 37,312 | +68.53% | | Of which: Accrued meeting expenses | 14,319 | – | N/A | | CSO deposits | 16,800 | – | N/A | | Other payables | 8,935 | 6,365 | +40.38% | [Interest-bearing Bank Borrowings](index=42&type=section&id=19.%20%E8%A8%88%E6%81%AF%E9%8A%80%E8%A1%8C%E5%80%9F%E6%AC%BE) Interest-bearing bank borrowings significantly increased to **RMB 40,025 thousand**, all unsecured bank loans bearing interest at **2.11% to 3.00%** per annum and repayable within one year Interest-bearing Bank Borrowings (RMB thousand) | Category | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Unsecured bank loans | 40,025 | 9,900 | +304.29% | - The bank loans are unsecured, bear interest at an annual rate of **2.11% to 3.00%**, and are repayable within one year[110](index=110&type=chunk) [Share Capital](index=43&type=section&id=20.%20%E8%82%A1%E6%9C%AC) As of June 30, 2025, the company's issued and fully paid share capital was **RMB 420,263 thousand**, consistent with the end of 2024, following a **RMB 250,000 thousand** capital injection from B+ round investors in 2024, of which **RMB 22,595 thousand** was credited to share capital Summary of Share Capital Changes (RMB thousand) | Metric | June 30, 2025 | January 1, 2024 | | :--- | :--- | :--- | | Number of shares in issue | 420,262,949 | 397,668,166 | | Share capital | 420,263 | 397,668 | - In 2024, B+ round investors injected **RMB 250,000 thousand** into the company, of which **RMB 22,595 thousand** was credited to share capital[111](index=111&type=chunk) [Share-based Payments](index=44&type=section&id=21.%20%E8%82%A1%E4%BB%BD%E7%82%BA%E5%9F%BA%E7%A4%8E%E7%9A%84%E4%BB%98%E6%AC%BE) The company approved an employee incentive scheme in March 2023, granting restricted shares with a 25% annual vesting schedule. As of June 30, 2025, **6,064,206 restricted shares** remained unexercised, and share-based payment expenses totaled **RMB 8,718 thousand** - The employee incentive scheme was approved on March 28, 2023, granting restricted shares to promote the Group's operational success[112](index=112&type=chunk) - Restricted shares vested at a rate of **25%** on December 31, 2023, 2024, 2025, and 2026, respectively, while Dr. Wang's shares vested fully in September 2023[113](index=113&type=chunk) Changes in Restricted Shares (shares) | Metric | June 30, 2025 | January 1, 2024 | | :--- | :--- | :--- | | Unexercised at beginning of period | 6,704,206 | 9,028,426 | | Forfeited during the period | (640,000) | (1,897,000) | | Unexercised at end of period | 6,064,206 | 6,704,206 | - For the six months ended June 30, 2025, share-based payment expenses amounted to **RMB 8,718 thousand**[114](index=114&type=chunk) [Commitments and Related Party Transactions](index=45&type=section&id=22.%20%E6%89%BF%E8%AB%BE) As of the reporting period end, the company's capital commitments totaled **RMB 28,189 thousand**, primarily for purchasing property, plant, and equipment. No related party transactions occurred during the period, but key management personnel remuneration is disclosed Contractual Commitments (RMB thousand) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Contracted but not provided for purchase of property, plant and equipment | 28,189 | 24,893 | - During the reporting period, the Group had no transactions with related parties[116](index=116&type=chunk) Key Management Personnel Remuneration (RMB thousand) | Category | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Fees | 330 | 50 | +560% | | Salaries and bonuses | 4,675 | 4,031 | +16.00% | | Share-based payment expenses | 2,665 | 6,099 | -56.30% | | Total | 7,850 | 10,396 | -24.50% | [Fair Value of Financial Instruments](index=45&type=section&id=24.%20%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E7%9A%84%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E5%8F%8A%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E7%AD%89%E7%B4%9A) The company's wealth management products are measured at fair value through profit or loss, categorized as Level 2 in the fair value hierarchy, amounting to **RMB 150,040 thousand** as of June 30, 2025 Financial Assets Measured at Fair Value (RMB thousand) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Wealth management products | 150,040 | 225,192 | - The fair value of wealth management products is derived using discounted cash flows based on expected rates of return, classified as Level 2 in the fair value hierarchy[106](index=106&type=chunk)[118](index=118&type=chunk) [Events After Reporting Period and Approval of Financial Statements](index=46&type=section&id=25.%20%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) The company's H shares were listed on the HKEX Main Board on August 15, 2025, and the Board approved and authorized the publication of the financial statements on August 29, 2025 - The company's H shares were listed on the Main Board of the Stock Exchange on August 15, 2025[119](index=119&type=chunk) - The Board approved and authorized the publication of the financial statements on August 29, 2025[120](index=120&type=chunk) [Definitions](index=47&type=section&id=%E9%87%8B%E7%BE%A9) [Glossary of Terms](index=47&type=section&id=%E6%9C%AF%E8%AF%AD%E5%AE%9A%E4%B9%89) This section provides definitions for key terms and abbreviations used in the report, covering professional vocabulary related to corporate governance, finance, product development, and market, ensuring clear understanding of the report content - Provides definitions for key terms and abbreviations used in the report, such as 'Audit Committee', 'Board', 'CDMO', 'Corporate Governance Code', 'China', 'Company', 'Corresponding period', 'CRO', 'CSO', 'Directors', 'Dr. Wang', 'Global Offering', 'Group', 'H Shares', 'HKD', 'HKAS', 'HKFRSs', 'Hong Kong', 'Listing', 'Listing Date', 'Listing Rules', 'Standard Code', 'Prospectus', 'Reporting Period', 'RMB', 'R&D', 'Shares', 'Shareholders', 'Stock Exchange', 'Supervisors', 'Treasury Shares', 'Unlisted Shares', and '%'[121](index=121&type=chunk)[122](index=122&type=chunk)[123](index=123&type=chunk)

浙江零跑科技股份有限公司 ZHEJIANG LEAPMOTOR TECHNOLOGY CO., LTD. 2025 中期報告 目錄 | 公司資料 | 2 | | --- | --- | | 主要摘要 | 4 | | 管理層討論及分析 | 6 | | 其他資料 | 16 | | 中期財務資料的審閱報告 | 38 | | 中期簡明合併損益表 | 39 | | 中期簡明合併全面收益╱（虧損）表 | 40 | | 中期簡明合併資產負債表 | 41 | | 中期簡明合併權益變動表 | 43 | | 中期簡明合併現金流量表 | 44 | | 中期簡明合併財務資料附註 | 45 | | 釋義 | 88 | 浙江零跑科技股份有限公司 | 2025中期報告 2 公司資料 董事 執行董事 朱江明先生 （創始人、董事長兼首席執行官） 曹力先生 （高級副總裁） 周洪濤先生 （高級副總裁） 非執行董事 Grégoire Olivier先生 Douglas Ostermann先生 金宇峰先生 獨立非執行董事 付于武先生 萬家樂女士 沈林華先生 監事 姚甜芝女士 莫承銳先生 吳燁鋒先生 （於2025年6月25日辭任） 趙志定先生 （於20 ...

Financial Performance - Revenue for the six months ended June 30, 2025, decreased by 9% to approximately HKD 122.8 million compared to HKD 135.3 million in 2024[13] - Profit attributable to owners of the company for the same period fell by 56% to approximately HKD 8.2 million from HKD 18.5 million in 2024[13] - Basic and diluted earnings per share decreased to HKD 0.58 from HKD 1.31, representing a 56% decline[5] - The group's total revenue decreased by 9% to approximately HKD 122,800,000 for the six months ended June 30, 2025, compared to approximately HKD 135,300,000 in the same period of 2024[16] - The total number of bottles sold during the period decreased to approximately 4.8 million, down from approximately 5.2 million in 2024[16] - Gross profit for the same period was HKD 47,277,000, down from HKD 48,767,000, reflecting a decline of 3.1%[77] - Operating profit decreased significantly to HKD 7,462,000, compared to HKD 17,044,000 in the previous year, representing a decline of 56.2%[77] - The company reported a profit of HKD 7,729,000 for the six months ended June 30, 2025, a decrease of 57.0% compared to HKD 17,978,000 in the same period of 2024[80] - Total comprehensive income for the period was HKD 13,432,000, down from HKD 15,359,000 year-on-year, reflecting a decline of 12.5%[80] Cost and Expenses - Increased promotional and advertising expenses contributed to the decline in operating profit during the first half of 2025[14] - Distribution costs accounted for approximately 23% of the group's revenue, up from 16% in 2024, attributed to increased marketing resources[24] - Management expenses represented 15% of the group's revenue, an increase from 11% in 2024, due to rising employee and related costs[25] - Distribution costs increased to HKD 27,855,000 from HKD 21,442,000, an increase of 29.9%[77] - Management expenses rose to HKD 17,966,000, compared to HKD 14,307,000, an increase of 25.5%[77] Financial Stability - The total equity attributable to owners of the company increased to HKD 318.5 million from HKD 310.0 million[5] - The debt-to-asset ratio improved to 34% from 44%, reflecting better financial stability[5][6] - The group maintains a strong financial position with no borrowings and minimal exposure to interest rate fluctuations[28] - The debt-to-asset ratio as of June 30, 2025, was approximately 34%, a decrease from 44% on December 31, 2024, indicating improved financial stability[58] - The company’s liabilities decreased to HKD 177,487,000 from HKD 256,204,000, a reduction of 30.7%[82] Market and Product Development - The company continues to focus on enhancing equipment and strengthening market promotion to capture growth potential in the Chinese wine market[4] - Dynasty Wines currently manufactures and sells over 100 types of wine products, catering to various consumer preferences[4] - The company launched over 100 wine products under the "Wang Chao" brand, catering to diverse consumer preferences in the Chinese wine market[31] - New product launches included the mid-to-high-end "Wang Chao Year of the Snake Red Wine," which integrates Chinese zodiac culture to attract younger consumers[31] - The company introduced the "Tian Yang Tea Wine Series" and "Wang Chao Bai Fu VSOP Brandy" at the 112th National Sugar and Wine Trade Fair, enhancing its product matrix[32] - The group is committed to diversifying its wine products to meet various consumer demands, focusing on low-alcohol and non-alcoholic wines to capture market trends[49] - The Tianxia Winery project in Ningxia is set to launch new products reflecting local characteristics, adhering to strict production standards[49] E-commerce and Marketing - E-commerce sales were expanded through traditional platforms like JD.com and Tmall, as well as innovative channels such as Xiaohongshu and Douyin, improving market penetration among younger consumers[35] - The overall e-commerce sales revenue declined due to market competition, but the company believes online platforms enhance brand promotion and overall business potential[36] - The company is actively promoting AI live streaming models across various channels to enhance brand exposure and sales[51] - The company plans to adjust its e-commerce distribution structure and expand its coverage in the second half of 2025, aiming for sales growth through a multi-store matrix model[51] Employee and Compensation - The total employee compensation and related costs amounted to approximately HKD 23,900,000 as of June 30, 2025, an increase from HKD 23,300,000 in 2024, primarily due to an increase in the number of employees and temporary labor[53] - The company employed 243 staff members as of June 30, 2025, compared to 238 a year earlier, reflecting a commitment to maintaining a skilled workforce[53] - The company reported short-term employee benefits of HKD 1,625,000 for the six months ended June 30, 2025, compared to HKD 1,688,000 for the same period in 2024, a decrease of about 3.7%[139] Governance and Shareholder Information - The board does not recommend any interim dividend payment to shareholders for the six months ending June 30, 2025[62] - As of June 30, 2025, major shareholders include Heng Ming Group Limited with 39.62% and Tianjin Food Group Limited with 42.80% of the voting shares[65] - The company has adhered to the corporate governance code and standards as of June 30, 2025[73] - The company approved a compensation agreement at a special general meeting held on July 25, 2025, indicating ongoing corporate governance activities[142]

Financial Performance - The total revenue for the six months ended June 30, 2025, was HKD 444,500,000, an increase of 17.4% compared to HKD 378,500,000 for the same period in 2024[13]. - Revenue for the six months ended June 30, 2025, was HKD 444,541,000, an increase of 17.4% compared to HKD 378,542,000 for the same period in 2024[56]. - The company reported a loss before tax of HKD 115,901,000, compared to a loss of HKD 36,676,000 in the previous year, indicating a significant increase in losses[56]. - The net loss for the six months ended June 30, 2025, was approximately HKD 115,500,000, compared to a net loss of HKD 36,800,000 for the same period in 2024[17]. - Total comprehensive loss for the six months was HKD 88,441,000, compared to HKD 47,648,000 in the previous year, reflecting a worsening financial position[58]. - Basic and diluted loss per share for the period was HKD 2.02, compared to HKD 0.79 in the same period last year[56]. Revenue Breakdown - The mining business generated revenue of HKD 110,600,000, while the supply chain business saw a decrease in revenue from HKD 328,000,000 to HKD 290,400,000[13]. - Revenue for the supply chain business was HKD 289,842,000, a decrease of 11.3% from HKD 326,800,000 in the previous year[79]. - Revenue from iron ore mining and selection was HKD 110,580,000, with no prior year comparison available[79]. Cost and Expenses - Direct costs and operating expenses increased significantly from HKD 361,500,000 to HKD 421,600,000, and administrative expenses rose from HKD 24,000,000 to HKD 71,000,000[15]. - The company reported total expenses of HKD 118.82 million for the mining project, with operating expenses of HKD 92.87 million and capital expenditures of HKD 25.95 million for the six months ended June 30, 2025[39]. - The company incurred an expected credit loss of HKD 4,773,000 during the period, compared to a reversal of HKD 3,163,000 in the previous year[56]. Assets and Liabilities - The company's total liabilities as of June 30, 2025, were HKD 1,309,321,000, with the supply chain business accounting for HKD 453,593,000[83]. - The company's net asset value decreased to HKD 515,762,000 from HKD 604,203,000, showing a decline in overall equity[61]. - The company's intangible assets increased to HKD 209,000,000, including mining rights valued at HKD 208,600,000[19]. - The company's cash and cash equivalents as of June 30, 2025, were HKD 20,700,000, a slight decrease from HKD 21,700,000 as of December 31, 2024[25]. Financial Ratios - The debt-to-equity ratio increased to 150.2% as of June 30, 2025, compared to 127.9% as of December 31, 2024, primarily due to significant losses during the period[25]. - The current ratio decreased to 0.53 from 0.75, mainly due to a substantial increase in borrowings due within one year[26]. Operational Challenges - The supply chain business faced significant challenges, with revenue slowing or even decreasing compared to the same period last year[8]. - The hotel management and catering services segment recorded a revenue decrease of approximately 14% compared to the same period in 2024, primarily due to a slowdown in consumer recovery and increased competition[9]. - The hotel management and catering services segment continues to incur losses, mainly due to fair value losses on investment properties[9]. - The iron ore mining and processing business experienced downward pressure due to unfavorable price changes and high fixed costs[8]. Strategic Initiatives - The group continues to focus on enhancing credit control measures and monitoring receivables to mitigate financial risks[8]. - The group plans to improve product and service quality in the hotel and catering market to maintain competitiveness[10]. - The group is actively seeking new potential customers to diversify revenue sources in its supply chain business[8]. - The group is implementing prudent and flexible strategies to enhance cost efficiency and optimize operational management[9]. - The group aims to release mining capacity to effectively dilute high fixed costs[8]. Shareholder Information - Major shareholders include Tengle Holdings and Yuerong Holdings, each holding 980,000,000 shares, representing 17.41% of total shares[42]. - Zongchuan Investment Holdings holds 950,000,000 shares, accounting for 16.87% of total shares[42]. - The total number of shares outstanding as of June 30, 2025, is 5,630,000,000[46]. Legal and Financial Obligations - The company is facing a legal lawsuit from the bank for the repayment of the loan, totaling approximately RMB 294,300,000, including principal and interest[49]. - The company is negotiating with the bank to extend the repayment period and aims for an amicable settlement[50]. - The company has ongoing litigation regarding outstanding loans totaling approximately RMB 318,794,000 (approximately HKD 337,954,000)[72]. Employee and Management Changes - The group employed approximately 520 staff as of June 30, 2025, compared to about 280 employees a year earlier, indicating an increase of approximately 85.7%[34]. - Changes in the board of directors include the appointment of new independent non-executive directors and the resignation of several executive directors[45][47]. Investment and Capital Expenditures - Capital expenditures for property, plant, and equipment investments reached approximately HKD 28.2 million for the six months ended June 30, 2025, a significant increase from HKD 2.7 million for the same period in 2024, representing a growth of over 900%[30]. - The company has not disclosed any other individuals or corporations with interests in its shares as of June 30, 2025[43].

股份代號 : 1959 (於開曼群島註冊成立的有限公司) 2025 2025 中期報告 Stock code: 1959 (incorporated in the Cayman Islands with limited liability) INTERIM REPORT 中期報告 Interim Report 2025 目錄 2 公司資料 4 管理層討論及分析 13 其他資料 25 中期簡明綜合損益表 26 中期簡明綜合全面收益表 27 中期簡明綜合財務狀況表 29 中期簡明綜合權益變動表 31 中期簡明綜合現金流量表 33 中期簡明綜合財務資料附註 公司資料 董事會 執行董事 羅厚杰先生 （主席兼行政總裁） 陳華泉先生 李惠芳女士 獨立非執行董事 李偉強先生 李衛寧先生 嚴斐女士 授權代表 羅厚杰先生 陳毅奮先生 聯席公司秘書 陳毅奮先生 梁潔心女士 審核委員會 李偉強先生 （主席） 李衛寧先生 嚴斐女士 薪酬委員會 李衛寧先生 （主席） 陳華泉先生 李偉強先生 提名委員會 羅厚杰先生 （主席） 李衛寧先生 嚴斐女士 註冊辦事處 Cricket Square Hutchins Drive PO Box 26 ...

Financial Performance - Revenue from Continuing Operations for the six months ended June 30, 2025, was RMB 1,089,414, an increase from RMB 493,413 in the same period of 2024[28]. - Gross profit from Continuing Operations rose to RMB 237,156 in the first half of 2025, up from RMB 139,188 in 2024[30]. - Operating profit from Continuing Operations improved to RMB 76,855 in the first half of 2025, compared to an operating loss of RMB 5,195 in the same period of 2024[35]. - Profit before taxation increased to RMB 42,394 in 2025 from RMB 816 in 2024, showing a substantial improvement[128]. - The total comprehensive loss for the period was RMB 193,745 in 2025, compared to a comprehensive income of RMB 77,705 in 2024[129]. - Basic loss per share for the period was RMB (5.08) cents in 2025, down from RMB 1.62 cents in 2024, reflecting a decline in profitability[131]. - The company reported a profit of RMB 24,245 from continuing operations in the first half of 2025, contrasting with a loss of RMB 43,023 in the same period of 2024[129]. - The company experienced a loss from discontinued operations of RMB 150,321 in 2025, compared to a profit of RMB 86,045 in 2024[131]. Coal Production and Trading - For the six months ended June 30, 2025, the Group's coal trading volume reached 3,897,000 tonnes, a significant increase from 2,407,000 tonnes in the same period of 2024, representing a growth of 62.0%[22]. - The Group produced 2,490,000 tonnes of coal from Indonesia, while coal production from China decreased to 1,407,000 tonnes, down from 2,407,000 tonnes in 2024[22]. - The average monthly coal trading volume increased to 650,000 tonnes in the first half of 2025, compared to 401,000 tonnes in the same period of 2024, representing a growth of 62%[28]. - Total washed coal production for the six months ended June 30, 2025, was 2,594,000 tonnes, an increase of 8.7% from 2,387,000 tonnes in the same period of 2024[68]. - The Sumber Daya Energi coal mine in South Kalimantan, Indonesia, produced 2,049,000 tonnes in the first half of 2025, significantly up from 755,000 tonnes in the same period of 2024[65]. Discontinued Operations - The Group completed the disposal of 100% equity interest in the Disposal Group for a consideration of RMB 30,000,000, which held five coal mines in China, effective July 11, 2025[21]. - The operation of the Disposal Group has been classified as discontinued operations, while the remaining operations are classified as continuing operations[21]. - Loss after taxation from Discontinued Operations was RMB 193,734 in the first half of 2025, compared to a profit of RMB 103,830 in the same period of 2024[39]. - Loss from Discontinued Operations increased to RMB 150,321,000 in 2025 from a profit of RMB 86,045,000 in 2024, primarily due to the depletion of coal reserves in China[41]. Strategic Initiatives - The management discussion highlights ongoing efforts in market expansion and potential new strategies for growth in the coal sector[21]. - The Group aims to maintain a reasonable level of gearing and borrowing costs moving forward[38]. - The strategic shift from pure coal production to "resource value management" aims to optimize capital efficiency and maximize shareholder returns[112]. - The Group's innovative model includes attracting strategic investors to take over equity interests after completing mine infrastructure, allowing for premium exits and reinvestment[112]. Assets and Liabilities - Current assets increased significantly to RMB 5,789,135,000 as of June 30, 2025, compared to RMB 2,075,584,000 as of December 31, 2024[74]. - Total liabilities rose to RMB 6,255,543,000 as of June 30, 2025, from RMB 5,143,084,000 as of December 31, 2024[77]. - The gearing ratio increased to 65.8% as of June 30, 2025, compared to 59.6% as of December 31, 2024, reflecting the repayment of loans and the disposal of Discontinued Operations[77]. - The Group's total capital expenditure for Continuing Operations was RMB 397.6 million for the six months ended June 30, 2025, down from RMB 481.4 million in the same period of 2024[78]. Operational Efficiency - The Group's logistics services ensure the delivery of coal to customers worldwide, enhancing operational efficiency[18]. - The management emphasizes the importance of the integrated coal supply chain as a key factor for the Group's success[18]. - The company plans to focus on resource optimization and operational efficiency following the disposal of its Chinese coal mines[56]. - The designed washing capacity of the coal washing system at SDE Mine I is approximately 600,000 tons per month, with plans for a new jigging system to add 300,000 tonnes monthly capacity in the second half of 2025[108]. Employee and Governance - As of June 30, 2025, the Group employed 4,962 employees and has implemented a performance-based reward system[120]. - The Group has complied with the Corporate Governance Code throughout the six months ended June 30, 2025[119].

Market Trends and Opportunities - The healthcare management group reported a significant market trend towards "quality upgrades" and "structural optimization" in the social hospital sector, facing both unprecedented opportunities and severe challenges[18]. - The company noted that policy incentives continue to be released, with increasing emphasis on specialization, digitization, and high-end development paths[18]. - The healthcare sector is experiencing a shift from homogeneous competition to differentiated development, driven by rising consumer demand for high-end medical services and the integration of internet healthcare with traditional services[18]. - The digital transformation in healthcare is becoming essential, with AI-assisted diagnosis, surgical robots, and electronic medical record systems emerging as core competitive technologies[18]. - Investment logic is shifting from scale expansion to value-based healthcare, with capital favoring specialized chains, emerging specialties, and smart healthcare sectors[18]. - The introduction of DRG/DIP payment reforms and international certification requirements has raised industry entry barriers, while differentiated positioning policies provide space for private hospitals to avoid competition with public hospitals[18]. Company Strategy and Focus - The company is adapting to stricter healthcare cost control measures and increasing competition for talent, alongside the expansion of public hospitals[18]. - The company is focusing on expanding its market presence in central and western regions of China, moving away from coastal concentration[18]. - The management team emphasized the importance of compliance capabilities, technological barriers, and brand effects in attracting investment[18]. - The company is committed to enhancing service quality and efficiency through technological empowerment, expanding service boundaries and innovation space[18]. - The group is focusing on a specialized deep cultivation strategy to enhance competitive advantages in key specialty areas[19]. - The group plans to leverage digital transformation, emphasizing AI, big data, and telemedicine to improve healthcare quality and operational efficiency[19]. - The group aims to strengthen its brand through international certifications and transparent operations, integrating brand building with healthcare quality improvement[19]. - The group is actively participating in public health services and charity initiatives, embedding social responsibility into its development strategy[21]. - The group has submitted 30 new technology and project applications, with 13 new technologies passing ethical review, indicating a commitment to research and development[37]. Financial Performance - The group's consolidated revenue for the six months ended June 30, 2025, was RMB 346.8 million, a decrease of RMB 68.4 million or 16.5% compared to RMB 415.2 million for the same period in 2024[24]. - Outpatient visits totaled 717,563, down 31,158 or 4.2% from 748,721 in the previous year[24]. - Inpatient visits decreased to 22,811, a reduction of 6,407 or 21.9% from 29,218 in the previous year[24]. - The average outpatient cost increased by 3.3% to RMB 310.4, while the average inpatient cost decreased by 18.9% to RMB 5,269.5[27]. - The group reported a 15.8% decrease in pharmaceutical sales revenue, totaling RMB 138.8 million compared to RMB 164.7 million in the previous year[38]. - Total revenue decreased by 16.5% from RMB 415.2 million in the six months ended June 30, 2024, to RMB 346.8 million in the six months ended June 30, 2025[41]. - Inpatient medical service revenue fell by 36.7% from RMB 189.9 million to RMB 120.2 million, primarily due to a decrease in inpatient visits and average costs[42]. - Outpatient medical service revenue slightly decreased by 1.0% from RMB 224.9 million to RMB 222.7 million, attributed to a reduction in outpatient visits[42]. - Gross profit decreased by 36.1% from RMB 71.6 million to RMB 45.8 million, with gross margin declining from 17.3% to 13.2%[45]. - Administrative expenses increased by 8.3% from RMB 38.7 million to RMB 41.9 million, mainly due to higher employee benefits and depreciation[47]. - Net financial costs rose from RMB 3.7 million to RMB 4.2 million, primarily due to increased foreign exchange losses[48]. - Income tax expense decreased from RMB 7.8 million to a tax credit of RMB 0.1 million, reflecting a reduction in pre-tax profits[49]. - The company reported a net loss of RMB 0.7 million for the six months ended June 30, 2025, compared to a profit of RMB 20.3 million in the same period of 2024, resulting in a net loss margin of -0.2%[50]. Assets and Liabilities - Current assets increased by 142.0% from RMB 4.6 million to RMB 11.1 million, mainly due to net cash generated from operating activities exceeding cash used in financing activities[52]. - Inventory decreased by 54.6% from RMB 39.6 million to RMB 18.0 million, primarily due to the consumption of stock accumulated for the Spring Festival[53]. - Trade payables decreased from RMB 100.7 million as of December 31, 2024, to RMB 96.0 million as of June 30, 2025, a reduction of RMB 4.7 million due to increased payments during the reporting period[57]. - Accrued expenses and other payables decreased from RMB 107.8 million as of December 31, 2024, to RMB 93.3 million as of June 30, 2025, a decrease of RMB 14.5 million primarily due to increased employee compensation and benefits payments[58]. - The company's debt-to-asset ratio as of June 30, 2025, was 37.3%, down from 40.6% as of December 31, 2024[68]. - The company had no contingent liabilities or guarantees that would significantly impact its financial position or operations as of June 30, 2025[59]. - Lease liabilities related to leased properties amounted to approximately RMB 1.1 million as of June 30, 2025[60]. Cash Flow and Financing Activities - Net cash generated from operating activities increased from RMB 57.3 million for the six months ended June 30, 2024, to RMB 80.7 million for the six months ended June 30, 2025, mainly due to the settlement of receivables from the medical insurance bureau[63]. - Net cash flow from investing activities improved from an outflow of RMB 23.0 million for the six months ended June 30, 2024, to an inflow of RMB 9.0 million for the six months ended June 30, 2025, primarily due to proceeds from the sale of land use rights amounting to RMB 19.1 million[64]. - Net cash used in financing activities increased from RMB 14.0 million for the six months ended June 30, 2024, to RMB 61.3 million for the six months ended June 30, 2025, mainly due to repayment of bank loans of RMB 32.6 million and increased purchases of existing shares under the restricted share unit plan by approximately RMB 17.4 million[65]. - The net increase in cash and cash equivalents was RMB 28.3 million for the six months ended June 30, 2025, compared to RMB 20.4 million for the same period in 2024[62]. - The company did not use any derivative financial instruments to hedge against foreign exchange risks during the reporting period, managing such risks through close monitoring of exchange rate fluctuations[67]. Shareholder Information and Stock Options - Major shareholders include Cao Junming and Sun Mingyan, each holding 384,383,500 shares, representing 64.06% of the total shares[76]. - Rubrical Investment holds 73,595,050 shares, accounting for 12.27% of the total shares[76]. - Sunny Rock has a stake of 310,788,450 shares, which is 51.80% of the total shares[76]. - The total number of shares issued by the company is 600,000,000 as of June 30, 2025[76]. - The stock option plan was approved on June 17, 2020, and is valid for ten years[82]. - The maximum number of shares that can be issued under the stock option plan cannot exceed 30% of the company's issued share capital[85]. - Each participant in the stock option plan is limited to a maximum of 1% of the company's issued share capital in any 12-month period[88]. - Any grant of stock options to connected persons must be approved by independent non-executive directors[89]. - The stock option plan aims to incentivize employees and directors for their contributions to the company[83]. - The company has established a broad participant base for the stock option plan to enhance overall performance and share price[83]. - The total number of shares that may be issued under the share option plan shall not exceed 10% of the shares already issued on the date of listing, amounting to 60,000,000 shares[90]. - The company may seek shareholder approval to expand the general plan limit, but the total number of shares issued under the share option plan cannot exceed 10% of the issued shares as of the approval date[90]. - No share options have been granted, agreed to be granted, exercised, cancelled, or lapsed under the share option plan as of the date of this interim report[94]. Restricted Share Unit Plans - The purpose of the 2022 Restricted Share Unit Plan is to recognize and incentivize participants for their contributions and to attract suitable employees for further development of the group[96]. - Participants in the 2022 Restricted Share Unit Plan include employees or senior officers of the group, including executive, non-executive, and independent non-executive directors[100]. - The total value of shares granted under the plan must exceed HKD 5 million or any higher amount specified by the exchange[97]. - The plan will remain effective for a period of ten years from August 22, 2022, or until an earlier termination date determined by the board or committee[102]. - Unvested restricted share units will be forfeited and automatically cancelled upon certain events, including termination of employment or service[104]. - The company must issue a circular to shareholders regarding any grant of share options to major shareholders or independent non-executive directors, requiring them to abstain from voting[92]. - The exercise price of shares under the share option plan will be determined by the board but shall not be less than HKD 1.00 per option granted[93]. - The total number of existing shares to be purchased under the 2023 Restricted Share Unit Plan will not exceed 5% of the company's issued share capital as of May 9, 2023, which is a maximum of 30,000,000 shares[122]. - The maximum total number of shares involved in granting rewards to selected participants cannot exceed 1% of the company's issued share capital as of May 9, 2023[122]. - As of the date of this interim report, no Restricted Share Units have been granted under the 2023 Restricted Share Unit Plan[123]. - The 2023 Restricted Share Unit Plan was adopted on May 9, 2023, to recognize and incentivize participants for their contributions[110]. - The plan will remain effective for a period of ten years from May 9, 2023, or until an earlier termination date determined by the board or committee[116]. - The committee managing the 2023 Restricted Share Unit Plan has the discretion to grant conditional rights to shares or equivalent cash to selected participants at any time during the plan's term[115]. - Participants in the 2023 Restricted Share Unit Plan include employees of any entity or hospital acquired by the group from the adoption date until the plan's expiration[114]. - The company is prohibited from granting rewards during the period of one month prior to the announcement of financial performance[120]. - The trustee may not hold more than 10% of the total issued shares at any time[122]. - The company will have the right to instruct the trustee to repurchase shares from participants under certain conditions[118]. Global Offering and Utilization of Proceeds - The company raised approximately HKD 264.8 million by issuing 150,000,000 shares at HKD 2.10 per share during the global offering[126]. - As of June 30, 2025, the company has utilized HKD 195.6 million of the net proceeds from the global offering, leaving HKD 69.2 million unutilized[127]. - 29.5% of the net proceeds (HKD 78.0 million) is allocated for the expansion of the company's first-phase building, which is fully utilized[127]. - 26.1% of the net proceeds (HKD 69.2 million) is earmarked for acquiring hospitals to expand the company's business, with no funds utilized yet[127]. Employee Information - Employee costs for the six months ended June 30, 2025, amounted to approximately RMB 107.2 million, a decrease from RMB 118.1 million for the same period in 2024[143]. - The total number of employees as of June 30, 2025, was approximately 1,844, down from 1,953 a year earlier[143]. - The company did not recommend any interim dividend for the six months ended June 30, 2025[142]. - No major investments or acquisitions were made during the reporting period[133]. - The company repurchased a total of 8,962,000 shares at a total cost of approximately HKD 18.90 million during February 2025[132]. - As of June 30, 2025, the unutilized net proceeds from the global offering were deposited as short-term demand deposits[129]. Summary of Financial Metrics - Revenue for the six months ended June 30, 2025, was RMB 346,820,000, a decrease of 16.5% compared to RMB 415,178,000 for the same period in 2024[151]. - Gross profit for the same period was RMB 45,801,000, down 36.1% from RMB 71,621,000 in 2024[151]. - Operating profit decreased significantly to RMB 3,489,000 from RMB 31,833,000, reflecting a decline of 89.0%[151]. - The net loss for the period was RMB 676,000, compared to a profit of RMB 20,263,000 in the previous year[151]. - Total assets as of June 30, 2025, were RMB 894,729,000, down from RMB 974,003,000 at the end of 2024, representing a decrease of 8.1%[154]. - Current assets decreased to RMB 335,963,000 from RMB 384,981,000, a decline of 12.7%[154]. - Cash and cash equivalents increased to RMB 286,780,000 from RMB 258,498,000, an increase of 10.9%[154]. - Total liabilities decreased to RMB 333,918,000 from RMB 395,080,000, a reduction of 15.4%[156]. - The company’s equity attributable to owners decreased to RMB 554,896,000 from RMB 573,005,000, a decline of 3.2%[154]. - The company reported a basic and diluted loss per share of RMB (0.00), compared to earnings per share of RMB 0.04 in the previous year[151]. - For the six months ended June 30, 2025, the operating cash flow generated was RMB 82,485,000, an increase of 21.5% compared to RMB 67,839,000 for the same period in 2024[162]. - The net cash generated from operating activities for the first half of 2025 was RMB 80,653,000, up 40.5% from RMB 57,341,000 in the prior year[162]. - Total revenue for the six months ended June 30, 2025, was RMB 346,820,000, a decrease of 16.5% from RMB 415,178,000 in the same period of 2024[180]. - Revenue from treatment and comprehensive medical services was RMB 204,171,000, down 18.3% from RMB 250,041,000 in the previous year[180]. - The estimated settlement rate for inpatient service revenue was recorded at 86.00%, compared to 93.36% for the year ended December 31, 2024[180]. - Cash and cash equivalents increased by RMB 28,329,000, compared to an increase of RMB 20,404,000 in the same period last year[162]. - The total cash and cash equivalents at the end of the reporting period was RMB 286,780,000, up from RMB 260,203,000 at the end of June 2024[162]. - The company incurred net cash used in financing activities of RMB 61,346,000 for the first half of 2025, compared to RMB 13,962,000 in the same period of 2024[162]. - The company’s borrowings from banks and other financial institutions amounted to RMB 78,400,000, a decrease from RMB 111,000,000 in the previous year[162]. - The company reported a nominal amount of approximately RMB 69,270,000 for inpatient service revenue, expected to be confirmed by the medical insurance bureau in 2026[180]. - The actual final settlement rate for inpatient service revenue in 2024 was 90.46%, a decrease from 98.04% in 2023, resulting in a revenue reduction of RMB 5,037,000 for the six months ending June 30, 2025[181]. - Medical compensation losses amounted to RMB 801,000 for the six months ending June 30, 2025, down from RMB 1,273,000 in the same period of 2024[183]. - Total financial costs for the six months ending June 30, 2025, were RMB 4,198,000, an increase from RMB 3,746,000 in the same period of 2024[184]. - The company reported a loss attributable to owners of RMB 673,000 for the six months ending June 30, 2025, compared to a profit of RMB 20,042,000 in the same period of 2024[192]. - The company did not declare an interim dividend for the six months ending June 30, 2025, consistent with the previous year[194]. - The net book value of property, plant, and equipment as of June 30, 2025, was RMB 496,591,000, down from RMB 525,001,000 at the end of 2024[196]. - The net book value of right-of-use assets as of June 30, 2025, was RMB 54,490,000, unchanged from