[Company Overview](index=3&type=section&id=Company%20Overview) Yida China Holdings Limited, established in 1988, is a leading business park developer and operator in China, offering services including park development, property sales, entrusted operation management, and construction. - Yida China, established in 1988, is China's largest business park developer and a leading operator[7](index=7&type=chunk) - Core businesses include business park development and operation, sales of supporting residential and office properties, entrusted operation management, and construction, decoration, and landscaping services[7](index=7&type=chunk) - The company successfully developed and operates Dalian Software Park and other parks using an "industry-city integration" model, serving nearly **80 Fortune Global 500 companies**[7](index=7&type=chunk)[8](index=8&type=chunk) - The company's vision is to become "China's leading business park operator" and implement a nationwide development strategy of "light asset-driven, heavy and light asset combined"[8](index=8&type=chunk) [Company Information](index=4&type=section&id=Company%20Information) This section provides essential information about Yida China Holdings Limited, including its board members, joint company secretaries, authorized representatives, board committee compositions, registered office, headquarters, and stock code. - The Board of Directors includes Mr. Jiang Xiuwen (Chairman and CEO), Mr. Lu Jianhua (Vice Chairman), and several executive, non-executive, and independent non-executive directors[10](index=10&type=chunk) - Mr. Chen Yichuan chairs the Audit Committee, Mr. Guo Shaomu chairs the Remuneration Committee, and Mr. Jiang Xiuwen chairs the Nomination Committee[10](index=10&type=chunk) - The company is registered in the Cayman Islands, with its China headquarters in Dalian and principal place of business in Hong Kong located in Wan Chai[10](index=10&type=chunk)[11](index=11&type=chunk) - The company's stock code is **3639**, and its official website is www.yidachina.com[12](index=12&type=chunk) [Chairman's Report](index=6&type=section&id=Chairman%27s%20Report) The Chairman's Report reviews Yida China's operating performance and market environment for the first half of 2025, outlining strategies for the second half. 2025 First Half Key Financial Data | Indicator | Amount (RMB million) | | :--- | :--- | | Revenue | 700 | | Gross Profit | 100 | | Gross Profit Margin | 14.2% | | Net Loss Attributable to Owners of the Company | 776 | - The real estate market continued its deep adjustment in the first half of 2025, with declining land auction transaction volumes and contracted GFA[19](index=19&type=chunk) - The company faced prominent debt risks during the period, with management focusing on improving operations and resolving debt risks to implement key initiatives[19](index=19&type=chunk) - Second-half outlook: Macro policies are expected to strengthen, but market demand, housing price expectations, and supply of quality real estate projects remain weak; the company will focus on core business drivers, accelerate destocking of existing projects, and revitalize assets to improve its debt-to-asset ratio[20](index=20&type=chunk) [Management Discussion and Analysis](index=8&type=section&id=Management%20Discussion%20and%20Analysis) This section details Yida China's business operations and financial performance for the first half of 2025, highlighting revenue changes across segments, expanded net loss, and increased liquidity pressure. [Business Review](index=8&type=section&id=Business%20Review) This section reviews Yida China's performance across its five core business segments: business park held property operations, property sales, business park operations management, construction, decoration and landscaping, and land reserve. [Business Park Held Property Operations](index=8&type=section&id=Business%20Park%20Held%20Property%20Operations) In the first half of 2025, Yida China held four wholly-owned business parks and a 50% interest in Wuhan Software New City, with total GFA of approximately 1.929 million sq.m., experiencing an 11.2% decrease in rental income due to lower occupancy. - The Group wholly owns four business parks: Dalian Software Park, Dalian Science and Technology City, Yida Information Software Park, and Dalian Tiandi, and holds a **50% interest in Wuhan Software New City**[22](index=22&type=chunk) - Total GFA of completed held properties is approximately **1.929 million sq.m.**, with leasable area of approximately **1.373 million sq.m.**[22](index=22&type=chunk) Business Park Rental Income | Indicator | 2025 First Half (RMB million) | 2024 First Half (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Rental Income | 216 | 243 | -11.2% | - The decrease in rental income is primarily due to a decline in occupancy rates, with approximately **28,000 sq.m.** of leased area returned by park clients due to international relations and geopolitical impacts[22](index=22&type=chunk)[24](index=24&type=chunk) - During the period, **11 new client enterprises** were added, with new contracted area of approximately **7,000 sq.m.**, and client stickiness was enhanced through industrial resource introduction and diversified value-added services[24](index=24&type=chunk)[25](index=25&type=chunk) [Property Sales](index=9&type=section&id=Property%20Sales) In the first half of 2025, Yida China focused on asset revitalization, debt risk control, and sales collection amidst a deeply adjusting real estate market, achieving contracted sales of RMB 415 million. - The real estate market continued its deep adjustment and transformation, with the company focusing on "asset revitalization, debt risk control, sales collection, and project construction"[26](index=26&type=chunk) 2025 First Half Property Sales Data | Indicator | Amount/Value | | :--- | :--- | | Contracted Sales Amount | RMB 415 million | | Contracted Sales Area | 34,100 sq.m. | | Contracted Sales Average Price | RMB 12,148/sq.m. | | Sales Revenue | RMB 212 million | | Sales Revenue YoY Change | +20.8% | | Sales Revenue Average Price | RMB 11,077/sq.m. | | Sales Revenue Average Price YoY Change | -39.7% | - The increase in sales revenue was mainly due to an increase in delivered projects during the period, while the decrease in average sales price was due to a different product mix compared to the same period in 2024, primarily lower-priced ordinary residential products and apartments[27](index=27&type=chunk) - Major sales projects are primarily located in Dalian, accounting for **82.2% of contracted sales amount**[26](index=26&type=chunk) [Business Park Operations Management](index=11&type=section&id=Business%20Park%20Operations%20Management) The Group is committed to developing smart park investment promotion and operations, with entrusted management area of approximately 219,000 sq.m. in the first half of 2025, generating RMB 87 million in revenue. - The Group is committed to developing smart park investment promotion and smart park operations, building a national industrial investment network matrix[30](index=30&type=chunk) 2025 First Half Business Park Operations Management Revenue | Indicator | 2025 First Half (RMB million) | 2024 First Half (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 87 | 100 | -13.2% | - The decrease in revenue was mainly due to clients scaling down their business operations during the period[30](index=30&type=chunk)[45](index=45&type=chunk) [Construction, Decoration and Landscaping](index=11&type=section&id=Construction%2C%20Decoration%20and%20Landscaping) Facing a downturn in the real estate industry, this business segment continued to contract, but Yida China recorded RMB 185 million in revenue, a 25.3% increase, primarily due to increased output from external projects. - The real estate industry is generally declining, and the market for this business segment continues to contract[31](index=31&type=chunk) - The company employs multiple methods to strictly control costs, optimizing organizational structure through a digital management platform to enhance per capita efficiency[31](index=31&type=chunk) 2025 First Half Construction, Decoration and Landscaping Revenue | Indicator | 2025 First Half (RMB million) | 2024 First Half (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 185 | 148 | +25.3% | - The increase in revenue was mainly attributable to increased output from external projects completed during the period[31](index=31&type=chunk)[46](index=46&type=chunk) [Land Reserve](index=11&type=section&id=Land%20Reserve) As of June 30, 2025, Yida China's total land reserve GFA was approximately 6.47 million sq.m., with Dalian accounting for 77.1%, and business parks comprising 87.6% of the total. Land Reserve Overview as of June 30, 2025 | Indicator | Total GFA (sq.m.) | Attributable GFA (sq.m.) | | :--- | :--- | :--- | | Total | 6,474,612 | 5,958,111 | | Dalian Proportion | 77.1% | 83.8% | | Business Park Proportion | 87.6% | 86.6% | - Land reserve is primarily concentrated in Dalian, with business park projects accounting for the vast majority[32](index=32&type=chunk)[33](index=33&type=chunk) [Financial Review](index=16&type=section&id=Financial%20Review) This section provides a detailed review of Yida China's financial performance for the first half of 2025, noting a slight increase in total revenue but a significant decline in gross profit and an expanded net loss. 2025 First Half Revenue Breakdown | Revenue Source | 2025 First Half (RMB thousand) | % of Total | 2024 First Half (RMB thousand) | % of Total | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Property Sales Revenue | 212,200 | 30.3% | 175,623 | 26.3% | +20.8% | | Rental Income | 216,387 | 30.9% | 243,798 | 36.5% | -11.2% | | Business Park Operations Management Service Income | 86,889 | 12.4% | 100,080 | 15.0% | -13.2% | | Construction, Decoration and Landscaping Income | 184,932 | 26.4% | 147,564 | 22.2% | +25.3% | | **Total** | **700,408** | **100.0%** | **667,065** | **100.0%** | **+5.0%** | 2025 First Half Gross Profit and Gross Profit Margin | Indicator | 2025 First Half (RMB thousand) | 2024 First Half (RMB thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 99,701 | 189,347 | -47.3% | | Gross Profit Margin | 14.2% | 28.4% | -14.2 percentage points | - The decrease in gross profit and gross profit margin was mainly due to a different product mix recognized during the period, with corresponding gross profit lower than the same period in 2024[48](index=48&type=chunk) 2025 First Half Key Profit and Loss Item Changes | Indicator | 2025 First Half (RMB thousand) | 2024 First Half (RMB thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Cost of Sales | 600,707 | 477,718 | +25.7% | | Selling and Marketing Expenses | 27,920 | 23,363 | +19.5% | | Administrative Expenses | 50,752 | 58,255 | -12.9% | | Other Net Losses | (101,800) | (58,461) | +74.1% | | Fair Value (Loss)/Gain on Investment Properties | (123,899) | 233 | Turned from gain to loss | | Net Finance Costs | 505,433 | 399,786 | +26.4% | | Income Tax Expense | 70,010 | 16,191 | +332.4% | | Loss for the Period | (778,342) | (361,429) | Loss widened | | Net Loss Attributable to Owners of the Company | (775,538) | (360,118) | Loss widened | - Fair value of investment properties turned from gain to loss, mainly due to business relocation of certain international clients and cost-saving measures by some clients leading to multiple tenant departures from the parks[52](index=52&type=chunk) - Net finance costs increased primarily due to higher interest expenses and reduced capitalized interest during the period[53](index=53&type=chunk) - Income tax expense significantly increased, mainly due to higher land appreciation tax provision resulting from land appreciation tax settlement for properties sold during the period[56](index=56&type=chunk) [Liquidity, Financial and Capital Resources](index=18&type=section&id=Liquidity%2C%20Financial%20and%20Capital%20Resources) As of June 30, 2025, Yida China's cash and bank balances were approximately RMB 441 million, with restricted cash of RMB 255 million, and total bank and other borrowings of RMB 11.605 billion, indicating increased liquidity pressure. Cash Position as of June 30, 2025 | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Cash and Bank Balances | 440,872 | 373,802 | | Restricted Cash | 254,919 | 217,550 | Debt Overview as of June 30, 2025 | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Bank and Other Borrowings | 11,605,345 | 11,670,884 | | Repayable within one year or on demand | 11,551,811 | 11,618,346 | | Repayable in the second year | 53,534 | 52,538 | | Net Gearing Ratio | 168.6% | 152.6% | - The net gearing ratio increased by **16 percentage points** from the end of 2024, indicating rising debt pressure[63](index=63&type=chunk) - The company's functional currency is RMB, but it holds HKD and USD-denominated cash and bank balances, as well as USD and HKD-denominated borrowings, exposing it to foreign exchange risk[65](index=65&type=chunk) - Contingent liabilities include guarantees for customer mortgage financing of approximately **RMB 132 million** and guarantees for joint venture bank loans of approximately **RMB 48.78 million**[66](index=66&type=chunk) - As of June 30, 2025, the Group had **300 full-time employees**, a decrease from **348** at the end of 2024[67](index=67&type=chunk) - The Board resolved not to declare any interim dividend for the period[69](index=69&type=chunk) [Disclosure of Interests](index=21&type=section&id=Disclosure%20of%20Interests) This section discloses the interests and short positions of directors, chief executives, and substantial shareholders in the company's shares and related shares as of June 30, 2025. Interests of Directors and Chief Executives in the Company's Shares | Director Name | Capacity/Nature of Interest | Number of Shares Held (L) | Approximate % of Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Jiang Xiuwen | Interest in controlled corporation | 68,600,000 | 2.65% | | Mr. Wang Gang | Interest in controlled corporation | 69,200,000 | 2.68% | Interests of Substantial Shareholders in the Company's Shares | Shareholder Name | Capacity/Nature of Interest | Number of Shares Held (L) | Approximate % of Issued Share Capital | | :--- | :--- | :--- | :--- | | Jiayou (International) Investment Co., Ltd. | Beneficial owner | 1,581,485,750 | 61.20% | | Jiahua (Holdings) Investment Co., Ltd. | Interest of a corporation controlled by a substantial shareholder | 1,581,485,750 | 61.20% | | Shanghai Pinzui Enterprise Management Co., Ltd. | Interest of a corporation controlled by a substantial shareholder | 1,581,485,750 | 61.20% | | CMIG Jiaye Investment Co., Ltd. | Interest of a corporation controlled by a substantial shareholder | 1,581,485,750 | 61.20% | | China Minsheng Investment Corp., Ltd. | Interest of a corporation controlled by a substantial shareholder | 1,581,485,750 | 61.20% | | Yang Meili | Joint and several receivers | 516,764,000 | 19.99% | | Chen Mingxiao | Joint and several receivers | 516,764,000 | 19.99% | | Sun Yin Huan | Founder of a discretionary trust | 241,400,000 | 9.34% | | TMF (Cayman) Ltd. | Trustee | 241,400,000 | 9.34% | | Right Ying Holdings Limited | Interest in controlled company | 241,400,000 | 9.34% | | Zhenghong Management Co., Ltd. | Beneficial owner | 241,400,000 | 9.34% | - **516,764,000 shares** held by Jiayou (International) Investment Co., Ltd. have been charged to Andu and joint and several receivers were appointed in May 2022[78](index=78&type=chunk)[97](index=97&type=chunk) [Corporate Governance and Other Information](index=24&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section outlines Yida China's corporate governance practices, including compliance with the Corporate Governance Code, directors' securities transaction standards, and audit committee composition. - The company complies with the Corporate Governance Code, though the roles of Chairman and Chief Executive Officer are combined and held by Mr. Jiang Xiuwen, which the Board believes is in the company's best interest[80](index=80&type=chunk) - The Audit Committee comprises three independent non-executive directors, chaired by Mr. Chen Yichuan, and has reviewed and approved the interim results[83](index=83&type=chunk)[84](index=84&type=chunk) - The company faces Andu arbitration involving total payment obligations of approximately **US$209 million**, and despite a settlement agreement, the respondents have not fulfilled all payment obligations[85](index=85&type=chunk)[86](index=86&type=chunk) - Dalian Service Outsourcing Base Development Co., Ltd., a wholly-owned subsidiary, was convicted of bribery due to a former employee's actions[87](index=87&type=chunk) - The company's 2022 senior notes defaulted due to failure to pay consent fees and interest on time, leading to an acceleration notice and a winding-up petition that was subsequently withdrawn[90](index=90&type=chunk)[91](index=91&type=chunk) - The company has multiple material loan agreement defaults, including liquidity difficulties of the controlling shareholder, detention of a former executive director, delayed payment of senior notes, non-fulfillment of the Andu arbitration award, and overdue subsidiary loans, resulting in **RMB 6.445 billion** in outstanding borrowings and an additional **RMB 5.107 billion** potentially subject to immediate repayment[93](index=93&type=chunk)[95](index=95&type=chunk) - The controlling shareholder, China Minsheng Investment Corp., Ltd. or its subsidiaries, must beneficially own **35% or more** of the total outstanding shares of the company, otherwise the outstanding balance of total payment obligations will become due[96](index=96&type=chunk) [Condensed Consolidated Statement of Profit or Loss](index=29&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, Yida China recorded revenue of RMB 700 million, a 5.0% increase year-on-year, but a significant rise in cost of sales led to a 47.3% decrease in gross profit to RMB 99.7 million. Condensed Consolidated Statement of Profit or Loss Summary (For the six months ended June 30, 2025) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 700,408 | 667,065 | | Cost of Sales | (600,707) | (477,718) | | Gross Profit | 99,701 | 189,347 | | Fair Value (Loss)/Gain on Investment Properties | (123,899) | 233 | | Other Net Losses | (101,800) | (58,461) | | Finance Costs | (505,433) | (399,786) | | Loss Before Income Tax | (708,332) | (345,238) | | Income Tax Expense | (70,010) | (16,191) | | Loss for the Period | (778,342) | (361,429) | | Loss Attributable to Owners of the Company | (775,538) | (360,118) | | Basic and Diluted Loss Per Share (RMB cents) | (30.01) | (13.94) | [Condensed Consolidated Statement of Comprehensive Income](index=30&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, Yida China's total comprehensive loss for the period was RMB 778 million, consistent with the loss for the period, indicating no other comprehensive income or loss reclassifiable to profit or loss. Condensed Consolidated Statement of Comprehensive Income Summary (For the six months ended June 30, 2025) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Loss for the Period | (778,342) | (361,429) | | Other comprehensive loss that may be reclassified to profit or loss in subsequent periods | – | – | | Total Comprehensive Loss for the Period | (778,342) | (361,429) | | Attributable to Owners of the Company | (775,538) | (360,118) | | Attributable to Non-controlling Interests | (2,804) | (1,311) | [Condensed Consolidated Statement of Financial Position](index=31&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, Yida China's total assets were RMB 33.883 billion, largely stable from year-end 2024, while total liabilities increased to RMB 27.261 billion, with current liabilities reaching RMB 24.985 billion, expanding the net current liabilities to RMB 11.585 billion. Condensed Consolidated Statement of Financial Position Summary (As of June 30, 2025) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Assets** | | | | Total Non-current Assets | 20,482,986 | 20,649,343 | | Investment Properties | 16,206,539 | 16,340,772 | | Prepayments for Land Acquisitions | 2,985,975 | 2,985,975 | | Total Current Assets | 13,400,044 | 13,230,643 | | Completed Properties Held for Sale | 8,643,961 | 7,498,371 | | Cash and Cash Equivalents | 185,953 | 156,254 | | Restricted Cash | 254,919 | 217,548 | | **Liabilities** | | | | Total Non-current Liabilities | 2,275,475 | 2,308,088 | | Total Current Liabilities | 24,985,337 | 24,170,923 | | Interest-bearing Bank and Other Borrowings (Current) | 11,551,811 | 11,618,346 | | Other Payables and Accrued Charges | 5,580,902 | 5,046,744 | | **Equity** | | | | Total Equity | 6,622,218 | 7,400,975 | | Net Current Liabilities | (11,585,293) | (10,940,280) | - Net current liabilities expanded from **RMB 10.940 billion** at the end of 2024 to **RMB 11.585 billion**, indicating further increased liquidity pressure[103](index=103&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=33&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, Yida China's total equity decreased from RMB 7.401 billion at the beginning of the year to RMB 6.622 billion, primarily due to a net loss of RMB 776 million attributable to owners of the company. Condensed Consolidated Statement of Changes in Equity Summary (For the six months ended June 30, 2025) | Indicator | January 1, 2025 (RMB thousand) | Loss for the Period (RMB thousand) | June 30, 2025 (RMB thousand) | | :--- | :--- | :--- | :--- | | Total Equity Attributable to Owners of the Company | 7,265,501 | (775,538) | 6,489,548 | | Non-controlling Interests | 135,474 | (2,804) | 132,670 | | **Total Equity** | **7,400,975** | **(778,342)** | **6,622,218** | - The decrease in total equity is primarily attributable to the net loss recorded during the period[104](index=104&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=34&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, Yida China's net cash flow from operating activities significantly increased to RMB 252 million, while net cash used in investing activities was RMB 31.165 million and net cash used in financing activities was RMB 191 million. Condensed Consolidated Statement of Cash Flows Summary (For the six months ended June 30, 2025) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Cash Flows from Operating Activities | 251,653 | 124,339 | | Net Cash Flows (Used in)/Generated from Investing Activities | (31,165) | 105,559 | | Net Cash Flows Used in Financing Activities | (190,789) | (225,481) | | Net Increase in Cash and Cash Equivalents | 29,699 | 4,417 | | Cash and Cash Equivalents at End of Period | 185,953 | 179,464 | - Net cash flow from operating activities significantly increased year-on-year, mainly due to a decrease in properties under development, a decrease in completed properties held for sale, and an increase in trade payables and contract liabilities[106](index=106&type=chunk) - Investing activities shifted from cash inflow in the prior year to cash outflow, primarily due to an increase in restricted cash[107](index=107&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=36&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the condensed consolidated financial statements, covering company and group information, basis of preparation, accounting policies, and financial risk management. [Company and Group Information](index=36&type=section&id=Company%20and%20Group%20Information) Yida China Holdings Limited was incorporated in the Cayman Islands in 2007 and primarily engages in property development, property investment, business park operations management, and construction in mainland China. - The Company was incorporated in the Cayman Islands on November 26, 2007, as an investment holding company[108](index=108&type=chunk) - The Group primarily engages in property development, property investment, business park operations management, property construction, decoration, and landscaping in mainland China[108](index=108&type=chunk) - The holding company is Jiayou (International) Investment Co., Ltd., and the ultimate holding company is China Minsheng Investment Corp., Ltd[108](index=108&type=chunk) [Basis of Preparation](index=36&type=section&id=Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in accordance with HKAS 34 and should be read in conjunction with the annual consolidated financial statements, with significant going concern uncertainties highlighted. - As of June 30, 2025, the Group's current liabilities exceeded current assets by **RMB 11.585 billion**, with current borrowings of **RMB 11.552 billion** and cash and cash equivalents of only **RMB 186 million**[110](index=110&type=chunk) - As of June 30, 2025, borrowings with an aggregate principal amount of **RMB 6.445 billion** remained unsettled[110](index=110&type=chunk) - Dalian Shengbei Development Co., Ltd., a subsidiary, failed to repay overdue loan principal of approximately **RMB 194 million**, resulting in an enforcement notice from the Shanghai Financial Court[110](index=110&type=chunk) - The Group failed to fulfill its settlement agreement with Andu, with an outstanding balance (including accrued interest) of **RMB 1.523 billion** payable to Andu, which may file a winding-up petition with the court[111](index=111&type=chunk) - These default events could lead to immediate repayment demands for certain other borrowings totaling **RMB 5.107 billion**[111](index=111&type=chunk) - Management has formulated plans and measures, including negotiating with Andu, renewing and extending loan repayments with lenders, accelerating property sales and collections, and seeking asset disposals, to mitigate liquidity pressure[112](index=112&type=chunk)[114](index=114&type=chunk) - Despite mitigation measures, significant uncertainties remain regarding the Group's ability to continue as a going concern[115](index=115&type=chunk)[118](index=118&type=chunk) [Accounting Policies](index=39&type=section&id=Accounting%20Policies) The accounting policies adopted in these condensed consolidated financial statements are consistent with those of the 2024 annual consolidated financial statements, with no material impact from new or revised HKFRSs. - The accounting policies adopted in preparing the condensed consolidated financial statements are consistent with those of the 2024 annual consolidated financial statements, with no material impact or retrospective adjustments required[116](index=116&type=chunk) - There are no new or revised Hong Kong Financial Reporting Standards, amendments to existing standards, or interpretations that are not yet effective and are expected to have a significant impact on the Group's financial position and operating results[117](index=117&type=chunk) [Critical Accounting Judgments and Key Sources of Estimation Uncertainty](index=40&type=section&id=Critical%20Accounting%20Judgments%20and%20Key%20Sources%20of%20Estimation%20Uncertainty) The preparation of condensed consolidated financial statements requires management to make judgments, estimates, and assumptions that affect the application of accounting policies and reported amounts. - The preparation of financial statements requires management to make judgments, estimates, and assumptions, and actual results may differ from these estimates[119](index=119&type=chunk) - The significant judgments and estimates made during the period are consistent with those applied in the 2024 annual financial statements[119](index=119&type=chunk) [Financial Risk Management Objectives and Policies](index=40&type=section&id=Financial%20Risk%20Management%20Objectives%20and%20Policies) The Group faces market, interest rate, foreign currency, credit, and liquidity risks, which are monitored, but no foreign currency hedging policy is currently in place. [Market Risk](index=40&type=section&id=Market%20Risk) The Group's assets primarily consist of land held for development for sale, investment properties, properties under development, and completed properties held for sale, which may not be immediately realizable if the property market significantly declines. - The Group's assets are primarily property-related, and a significant downturn in the property market may prevent immediate realization of these assets[121](index=121&type=chunk) [Interest Rate Risk](index=40&type=section&id=Interest%20Rate%20Risk) The Group's primary interest rate risk stems from long-term debt obligations, with floating-rate borrowings exposed to cash flow interest rate risk and fixed-rate borrowings to fair value interest rate risk. - The Group's primary interest rate risk relates to long-term debt obligations, with floating-rate borrowings exposed to cash flow interest rate risk and fixed-rate borrowings to fair value interest rate risk[123](index=123&type=chunk) - The Group does not use any interest rate swaps to hedge interest rate risk[123](index=123&type=chunk) Interest Rate Sensitivity Analysis (Impact on Loss Before Income Tax) | Currency | Basis Point Increase/(Decrease) | June 30, 2025 (RMB thousand) | | :--- | :--- | :--- | | RMB | 50 | (1,425) | | RMB | (50) | 1,425 | [Foreign Currency Risk](index=41&type=section&id=Foreign%20Currency%20Risk) The Group's functional currency is RMB, but it holds USD and HKD-denominated short-term deposits and borrowings, exposing it to foreign currency risk, with no current hedging policy. - The Group's functional currency is RMB, but it holds USD and HKD-denominated financial assets and liabilities, exposing it to foreign currency risk[126](index=126&type=chunk) - The Chinese government imposes controls on the conversion of RMB into foreign currencies and the remittance of foreign currencies out of mainland China, which may affect the Group's ability to obtain necessary foreign exchange[125](index=125&type=chunk)[126](index=126&type=chunk) - The Group currently has no foreign currency hedging policy[127](index=127&type=chunk) - A **9% depreciation/appreciation** of RMB against USD would result in an increase/decrease in loss before income tax for the period of **RMB 272 million**, respectively[127](index=127&type=chunk) [Credit Risk](index=42&type=section&id=Credit%20Risk) The Group's credit risk primarily arises from trade receivables and other receivables, managed through expected credit loss provisions. - The Group's credit risk primarily arises from trade receivables and other receivables, managed through expected credit loss provisions[128](index=128&type=chunk) Impairment Provision for Trade Receivables (June 30, 2025) | Ageing | Expected Loss Rate | Gross Carrying Amount (RMB thousand) | Expected Credit Loss Provision (RMB thousand) | | :--- | :--- | :--- | :--- | | Within one year | 7.34% | 276,059 | 20,267 | | One to two years | 15.54% | 71,559 | 11,120 | | Over two years | 74.39% | 141,621 | 105,356 | | **Total** | | **489,239** | **136,743** | Impairment Provision for Other Receivables (June 30, 2025) | Category | Expected Credit Loss Rate | Gross Carrying Amount (RMB thousand) | Loss Provision (RMB thousand) | | :--- | :--- | :--- | :--- | | Amounts due from related parties (Stage 1) | 0.10% | 32,222 | (32) | | Receivables for primary land development (Stage 3) | 52.85% | 737,321 | (389,697) | | Others (Stage 1) | 0.94% | 318,597 | (2,996) | | Others (Stage 3) | 73.93% | 139,858 | (103,392) | | **Total** | | **1,227,998** | **(496,117)** | [Liquidity Risk](index=46&type=section&id=Liquidity%20Risk) The Group monitors funding shortage risk using liquidity planning tools and balances funding through bank and other borrowings, with most financial liabilities due within one year or on demand. - The Group uses liquidity planning tools to monitor funding shortage risk and balances funding through bank and other borrowings[135](index=135&type=chunk) Maturity Analysis of Financial Liabilities (June 30, 2025) | Liability Category | On Demand or Within One Year (RMB thousand) | Second Year (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | | Interest-bearing Bank and Other Borrowings | 12,064,690 | 56,674 | 12,121,364 | | Trade Payables | 3,488,702 | – | 3,488,702 | | Other Payables and Accrued Charges | 5,004,493 | – | 5,004,493 | | Lease Liabilities | 2,416 | 1,501 | 9,068 | | **Total** | **20,560,301** | **58,175** | **20,623,627** | | Maximum Amount of Financial Guarantees Issued | 181,163 | – | 181,163 | [Capital Management](index=47&type=section&id=Capital%20Management) The Group's capital management aims to ensure continuous operation, maintain a sound capital ratio, and generate returns for shareholders, with a net gearing ratio of 168.6% as of June 30, 2025. - Capital management objectives are to ensure the ability to continue as a going concern, maintain a sound capital ratio, and generate returns for shareholders[137](index=137&type=chunk) - The Group monitors capital using the net gearing ratio, calculated as net debt divided by total equity[137](index=137&type=chunk) Net Gearing Ratio | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Debt | 11,164,473 | 11,297,082 | | Total Equity | 6,622,218 | 7,400,975 | | Net Gearing Ratio | 168.6% | 152.6% | [Operating Segment Information](index=48&type=section&id=Operating%20Segment%20Information) The Group is organized into five reportable operating segments: property development, property investment, business park operations management, construction, decoration and landscaping, and other segments, with management monitoring each segment's performance for resource allocation. - The Group is divided into five reportable operating segments: property development, property investment, business park operations management, construction, decoration and landscaping, and other segments[138](index=138&type=chunk)[140](index=140&type=chunk) Segment Results (For the six months ended June 30, 2025) | Segment | Revenue (RMB thousand) | Segment Results (RMB thousand) | | :--- | :--- | :--- | | Property Development | 212,200 | (218,963) | | Property Investment | 216,387 | 22,900 | | Business Park Operations Management | 86,889 | (587) | | Construction, Decoration and Landscaping | 184,932 | (5,296) | | Others | – | (1,389) | | **Total** | **700,408** | **(203,335)** | - No geographical information is presented as all external customer revenue and most segment assets are located in mainland China[142](index=142&type=chunk) [Revenue](index=50&type=section&id=Revenue) The Group's revenue sources include property sales, rental income, business park operations management services, and construction, decoration and landscaping, totaling RMB 700 million for the six months ended June 30, 2025. - Revenue sources include property sales, rental income, business park operations management service income, and construction, decoration and landscaping income[143](index=143&type=chunk) Revenue Analysis (For the six months ended June 30, 2025) | Revenue Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue from contracts with customers recognized at a point in time (Property sales) | 212,200 | 175,623 | | Revenue from contracts with customers recognized over time (Services) | 271,821 | 247,644 | | Revenue from other sources (Rental) | 216,387 | 243,798 | | **Total Revenue** | **700,408** | **667,065** | [Other Income](index=51&type=section&id=Other%20Income) For the six months ended June 30, 2025, the Group's other income totaled RMB 2.641 million, primarily comprising interest income and government grants, representing a decrease from the same period in 2024. Other Income Breakdown (For the six months ended June 30, 2025) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest Income | 436 | 444 | | Government Grants | 2,205 | 4,721 | | **Total** | **2,641** | **5,165** | [Expenses by Nature](index=51&type=section&id=Expenses%20by%20Nature) For the six months ended June 30, 2025, the Group's total cost of sales, selling and marketing expenses, and administrative expenses amounted to RMB 679 million, a significant increase from RMB 559 million in the prior year. Analysis of Expenses by Nature (For the six months ended June 30, 2025) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of Properties Sold | 257,497 | 171,599 | | Cost of Other Services Provided | 250,659 | 239,260 | | Direct Operating Expenses Arising from Investment Properties that Generate Rental Income | 92,551 | 66,859 | | Employee Benefit Expenses | 30,955 | 34,505 | | Depreciation | 5,317 | 6,602 | | Amortization of Intangible Assets | 1,573 | 2,585 | | Advertising | 2,605 | 2,106 | | Other Fees and Expenses | 37,346 | 34,388 | | **Total** | **679,379** | **559,336** | [Other Net Losses](index=52&type=section&id=Other%20Net%20Losses) For the six months ended June 30, 2025, the Group recorded other net losses of approximately RMB 102 million, a significant increase from RMB 58.461 million in the prior year, primarily due to late payment penalties. Other Net Losses Breakdown (For the six months ended June 30, 2025) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Foreign Exchange Gain/(Loss) | 14,307 | (19,590) | | Late Payment Penalties | (119,748) | – | | Others | 3,641 | (38,871) | | **Total** | **(101,800)** | **(58,461)** | - The increase in other net losses was mainly due to **RMB 119 million** in late payment penalties incurred during the period[147](index=147&type=chunk) [Finance Costs](index=52&type=section&id=Finance%20Costs) For the six months ended June 30, 2025, the Group's finance costs totaled RMB 505 million, an increase from RMB 400 million in the prior year, primarily due to higher interest on bank and other borrowings and reduced capitalized interest. Finance Costs Breakdown (For the six months ended June 30, 2025) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest on Bank and Other Borrowings | 556,028 | 529,166 | | Interest on Lease Liabilities | 386 | 537 | | Less: Capitalized Interest | (50,981) | (129,917) | | **Total** | **505,433** | **399,786** | - The increase in finance costs was mainly due to higher interest expenses and reduced capitalized interest[148](index=148&type=chunk) [Income Tax Expense](index=53&type=section&id=Income%20Tax%20Expense) For the six months ended June 30, 2025, the Group's income tax expense significantly increased to RMB 70.01 million, a 332.4% rise from RMB 16.191 million in the prior year, primarily due to higher land appreciation tax provision. Income Tax Expense Analysis (For the six months ended June 30, 2025) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | China Corporate Income Tax | 9,982 | 7,418 | | China Land Appreciation Tax | 90,190 | (494) | | Deferred Tax (Current Period) | (30,162) | 9,267 | | **Total Tax Expense for the Period** | **70,010** | **16,191** | - The significant increase in income tax expense was mainly due to higher land appreciation tax provision resulting from land appreciation tax settlement for properties sold during the period[150](index=150&type=chunk) [Interim Dividend](index=53&type=section&id=Interim%20Dividend) The Company resolved not to declare any interim dividend for the six months ended June 30, 2025, consistent with the prior year. - The Company resolved not to declare any interim dividend for the six months ended June 30, 2025[151](index=151&type=chunk) [Loss Per Share Attributable to Ordinary Equity Holders of the Company](index=53&type=section&id=Loss%20Per%20Share%20Attributable%20to%20Ordinary%20Equity%20Holders%20of%20the%20Company) For the six months ended June 30, 2025, the basic and diluted loss per share attributable to ordinary equity holders of the Company was RMB 30.01 cents, an increase from RMB 13.94 cents in the prior year. Loss Per Share (For the six months ended June 30, 2025) | Indicator | 2025 (RMB cents) | 2024 (RMB cents) | | :--- | :--- | :--- | | Basic and Diluted Loss Per Share | (30.01) | (13.94) | - The calculation of basic loss per share is based on the loss for the period attributable to ordinary equity holders of the Company of **RMB 776 million** and the weighted average of **2.584 billion** ordinary shares in issue during the periods[152](index=152&type=chunk) [Property, Plant and Equipment](index=53&type=section&id=Property%2C%20Plant%20and%20Equipment) As of June 30, 2025, buildings valued at RMB 9.883 million were pledged to financial institutions as security for loans granted to the Group. - As of June 30, 2025, buildings valued at **RMB 9.883 million** were pledged to financial institutions as security for loans granted to the Group[153](index=153&type=chunk) [Investment Properties](index=54&type=section&id=Investment%20Properties) As of June 30, 2025, the Group's investment properties totaled RMB 16.207 billion, slightly down from the beginning of the year, with a net fair value adjustment loss of RMB 124 million due to tenant departures. Movement in Investment Properties (As of June 30, 2025) | Item | Amount (RMB thousand) | | :--- | :--- | | At January 1, 2025 | 16,340,772 | | Additions | 152 | | Disposals | (10,486) | | Net Loss from Fair Value Adjustment | (123,899) | | At June 30, 2025 | 16,206,539 | - The net loss from fair value adjustment was mainly due to business relocation of certain international clients and cost-saving requirements by some clients to move operations to lower-cost regions, leading to multiple tenant departures from the parks during the period[52](index=52&type=chunk)[154](index=154&type=chunk) - Investment properties valued at **RMB 14.130 billion** were pledged to banks as collateral for loans granted to the Group[154](index=154&type=chunk) - Some investment properties are subject to sale and transfer restrictions, requiring them to be held for at least **15 years**[155](index=155&type=chunk) [Land Held for Development for Sale](index=55&type=section&id=Land%20Held%20for%20Development%20for%20Sale) As of June 30, 2025, the Group's land held for development for sale had a carrying amount of RMB 790 million, with RMB 728 million pledged to banks as security for loans. Movement in Land Held for Development for Sale (As of June 30, 2025) | Item | Amount (RMB thousand) | | :--- | :--- | | Carrying amount at beginning of period/year | 789,963 | | Additions | 486 | | Carrying amount at end of period/year | 790,449 | - Land held for development for sale valued at **RMB 728 million** was pledged to banks as security for bank and other loans granted to the Group[157](index=157&type=chunk) [Prepayments, Deposits and Other Receivables](index=55&type=section&id=Prepayments%2C%20Deposits%20and%20Other%20Receivables) As of June 30, 2025, the Group's total carrying amount of prepayments, deposits, and other receivables was RMB 1.203 billion, with a non-current portion of RMB 348 million. Prepayments, Deposits and Other Receivables (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Prepayments | 471,373 | 467,137 | | Gross Deposits and Other Receivables | 1,227,998 | 1,344,453 | | Less: Impairment Provision | (496,117) | (496,580) | | **Carrying Amount at End of Period/Year** | **1,203,254** | **1,315,010** | | Current Portion | (855,630) | (948,173) | | Non-current Portion | 347,624 | 366,837 | - Other receivables include amounts due from associates of **RMB 32.149 million** and amounts due from joint ventures of **RMB 5.98 million**[158](index=158&type=chunk)[159](index=159&type=chunk) - Other receivables include amounts advanced to local government authorities for primary land development of certain land parcels in Dalian, China, totaling **RMB 348 million**[159](index=159&type=chunk) [Trade Receivables](index=56&type=section&id=Trade%20Receivables) As of June 30, 2025, the Group's total trade receivables amounted to RMB 558 million, with an impairment provision of RMB 182 million, resulting in a net amount of RMB 375 million. Trade Receivables (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Gross Trade Receivables | 557,623 | 502,814 | | Less: Impairment Provision | (182,493) | (180,428) | | **Net Amount** | **375,130** | **322,386** | Ageing Analysis of Trade Receivables (As of June 30, 2025) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within one year | 276,059 | 205,416 | | One to two years | 71,559 | 54,475 | | Over two years | 210,005 | 242,923 | | **Total** | **557,623** | **502,814** | [Cash and Cash Equivalents and Restricted Cash](index=57&type=section&id=Cash%20and%20Cash%20Equivalents%20and%20Restricted%20Cash) As of June 30, 2025, the Group's total cash and bank balances were RMB 441 million, comprising restricted cash of RMB 255 million and cash and cash equivalents of RMB 186 million. Cash and Cash Equivalents and Restricted Cash (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Cash and Bank Balances | 440,872 | 373,802 | | Less: Restricted Cash | (254,919) | (217,548) | | **Cash and Cash Equivalents** | **185,953** | **156,254** | - Restricted cash includes guarantee deposits from property pre-sale proceeds placed in designated bank accounts (**RMB 24.82 million**) and deposits placed in designated bank accounts according to contracts and local government regulations (**RMB 230 million**)[164](index=164&type=chunk) [Contract Liabilities](index=57&type=section&id=Contract%20Liabilities) The Group's contract liabilities primarily represent amounts received from pre-sale property buyers and amounts payable to contract customers at the end of the reporting period. - Contract liabilities primarily represent amounts received from pre-sale property buyers and amounts payable to contract customers[163](index=163&type=chunk) Contract Liabilities (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Contract Liabilities | 1,367,420 | 1,253,652 | [Trade Payables](index=58&type=section&id=Trade%20Payables) As of June 30, 2025, the Group's total trade payables were RMB 3.489 billion, an increase from RMB 3.345 billion at the end of 2024, with a significant portion due within one year. Ageing Analysis of Trade Payables (As of June 30, 2025) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within one year | 1,721,783 | 2,231,487 | | Over one year | 1,766,919 | 1,113,431 | | **Total** | **3,488,702** | **3,344,918** | - Trade payables are interest-free and unsecured[165](index=165&type=chunk) [Other Payables and Accrued Charges](index=58&type=section&id=Other%20Payables%20and%20Accrued%20Charges) As of June 30, 2025, the Group's total other payables and accrued charges amounted to RMB 5.581 billion, an increase from RMB 5.047 billion at the end of 2024, including RMB 1.523 billion payable to Andu. Other Payables and Accrued Charges (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Employee Benefits Payable | 107,995 | 108,514 | | Accrued Charges | 2,027,155 | 1,716,610 | | Other Payables | 3,445,752 | 3,221,620 | | **Carrying Amount at End of Period/Year** | **5,580,902** | **5,046,744** | - Other payables include amounts due to Andu of **RMB 1.523 billion**, bearing an annual interest rate of **21.9%**, and the Group's failure to fulfill the settlement agreement may lead to a winding-up petition by Andu[166](index=166&type=chunk) [Interest-bearing Bank and Other Borrowings](index=59&type=section&id=Interest-bearing%20Bank%20and%20Other%20Borrowings) As of June 30, 2025, the Group's total interest-bearing bank and other borrowings were RMB 11.605 billion, with the current portion being RMB 11.552 billion, largely due within one year or on demand. Interest-bearing Bank and Other Borrowings (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Current** | | | | Secured Bank Loans | 5,072,665 | 5,340,153 | | Secured Other Borrowings | 4,263,965 | 4,119,741 | | Unsecured Other Borrowings | 2,215,181 | 2,158,452 | | **Non-current** | | | | Unsecured Other Borrowings | 53,534 | 52,538 | | **Total** | **11,605,345** | **11,670,884** | - The current portion includes principal amounts of **RMB 2.544 billion** of borrowings originally due after June 30, 2026, reclassified as current liabilities due to going concern uncertainties[168](index=168&type=chunk) - Certain bank and other loans of the Group are secured by properties under development, investment properties, land held for development for sale, completed properties held for sale, buildings, or corporate guarantees[170](index=170&type=chunk) - The senior notes defaulted due to failure to pay consent fees and interest, leading to accelerated repayment, with a carrying amount of **RMB 1.782 billion**[168](index=168&type=chunk)[169](index=169&type=chunk) - Other borrowings include loans from related parties (Shanghai Jiayue Medical Investment Management Co., Ltd. and Jiahua (Holdings) Investment Co., Ltd.) with a principal amount of **RMB 663 million**[170](index=170&type=chunk) [Share Capital](index=62&type=section&id=Share%20Capital) As of June 30, 2025, the Company's authorized share capital was 50 billion shares of US$0.01 par value each, with 2.584 billion issued and fully paid ordinary shares, totaling RMB 159 million. Share Capital (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Authorized Share Capital (50 billion shares of US$0.01 par value each) | 3,124,300 | 3,124,300 | | Issued and Fully Paid Share Capital (2.584 billion shares of US$0.01 par value each) | 159,418 | 159,418 | [Financial Guarantees](index=62&type=section&id=Financial%20Guarantees) As of June 30, 2025, the Group's financial guarantees included a maximum liability of RMB 132 million for property buyers' mortgage financing and RMB 48.781 million for joint venture bank loans. - The Group's maximum liability for mortgage financing provided to property buyers is **RMB 132 million**[172](index=172&type=chunk) - The Group provided guarantees for bank loans granted to its joint ventures amounting to **RMB 48.781 million**[172](index=172&type=chunk) - The Directors believe that the fair value of the financial guarantee contracts was not material upon initial recognition, and the likelihood of default is very low, thus no value has been recognized[173](index=173&type=chunk) [Pledged Assets](index=63&type=section&id=Pledged%20Assets) The Group's bank and other loans are secured by various pledged assets, as detailed in Note 24, "Interest-bearing Bank and Other Borrowings". - The Group's bank and other loans are secured by various pledged assets, details of which are set out in Note 24[174](index=174&type=chunk) [Operating Lease Arrangements as Lessor](index=63&type=section&id=Operating%20Lease%20Arrangements%20as%20Lessor) The Group leases out its investment properties under operating lease arrangements with lease terms ranging from one to twenty years, with total future minimum rentals receivable of RMB 740 million as of June 30, 2025. - The Group leases out its investment properties under operating lease arrangements, with lease terms ranging from **one to twenty years**[175](index=175&type=chunk) Total Future Minimum Rentals (As of June 30, 2025) | Period | Amount (RMB thousand) | | :--- | :--- | | Within one year | 213,293 | | In the second to fifth years | 319,289 | | After five years | 207,187 | | **Total** | **739,769** | [Commitments](index=63&type=section&id=Commitments) As of June 30, 2025, the Group's total contracted but unprovided capital commitments amounted to RMB 3.126 billion, primarily for capital expenditures on investment properties under construction and properties under development in mainland China. Capital Commitments (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Capital expenditure for investment properties under construction and properties under development | 3,120,765 | 3,285,535 | | Capital contribution to a joint venture | 5,040 | 5,040 | | **Total** | **3,125,805** | **3,290,575** | [Related Party Transactions](index=64&type=section&id=Related%20Party%20Transactions) Aside from transactions already detailed in other sections of the condensed consolidated financial statements, there were no other significant related party transactions for the six months ended June 30, 2025 and 2024. - Aside from the transactions already detailed, there were no other significant related party transactions during the period[178](index=178&type=chunk) [Financial Instruments by Category](index=64&type=section&id=Financial%20Instruments%20by%20Category) As of June 30, 2025, the Group's total financial assets measured at amortized cost were RMB 1.548 billion, while total financial liabilities measured at amortized cost were RMB 20.105 billion. Financial Assets Measured at Amortized Cost (As of June 30, 2025) | Item | Amount (RMB thousand) | | :--- | :--- | | Trade Receivables | 375,130 | | Deposits and Other Receivables | 731,881 | | Restricted Cash | 254,919 | | Cash and Cash Equivalents | 185,953 | | **Total** | **1,547,883** | Financial Liabilities Measured at Amortized Cost (As of June 30, 2025) | Item | Amount (RMB thousand) | | :--- | :--- | | Trade Payables | 3,488,702 | | Other Payables and Accrued Charges | 5,004,493 | | Interest-bearing Bank and Other Borrowings | 11,605,345 | | Lease Liabilities | 6,714 | | **Total** | **20,105,254** | [Fair Value and Fair Value Hierarchy of Financial Instruments](index=66&type=section&id=Fair%20Value%20and%20Fair%20Value%20Hierarchy%20of%20Financial%20Instruments) As of June 30, 2025, the Group's assets measured at fair value primarily consisted of investment properties, totaling RMB 15.695 billion, all classified as Level 3 in the fair value hierarchy. Assets Measured at Fair Value (June 30, 2025) | Item | Level 1 (RMB thousand) | Level 2 (RMB thousand) | Level 3 (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Investment Properties | – | – | 15,694,768 | 15,694,768 | - The fair value measurement of investment properties uses internal valuations and involves external valuers, classified as Level 3 in the fair value hierarchy[184](index=184&type=chunk)[185](index=185&type=chunk) - The fair values of other receivables and the non-current portion of interest-bearing bank and other borrowings approximate their carrying amounts[183](index=183&type=chunk) [Definitions](index=68&type=section&id=Definitions) This section provides definitions for key terms and abbreviations used in the report to ensure a clear understanding of its content

Financial Performance - Revenue for the six months ended June 30, 2025, was HK$103,007,000, a significant increase of 124.5% compared to HK$45,999,000 for the same period in 2024[13] - Gross profit for the reporting period was HK$16,054,000, down 11% from HK$18,031,000 in the prior year[13] - Operating profit decreased to HK$3,079,000, a decline of 71.6% from HK$10,843,000 in the first half of 2024[13] - Profit for the period was HK$1,540,000, representing a decrease of 84.5% compared to HK$9,949,000 in the same period last year[13] - Total comprehensive income for the period was HK$3,667,000, down 54.7% from HK$8,109,000 in the previous year[15] - Basic and diluted earnings per share decreased to 0.2 HK cents from 1.2 HK cents in the first half of 2024[15] - The profit for the period ended June 30, 2025, was HK$1,540,000, compared to HK$9,949,000 for the same period in the previous year, indicating a decrease of approximately 84.5%[21] - Profit attributable to owners of the Company was approximately HK$1.5 million for the Reporting Period, down from approximately HK$9.9 million for 1H 2024[160] Expenses and Costs - Selling and distribution expenses increased to HK$3,532,000, up 243.5% from HK$1,028,000 in 2024[13] - Administrative expenses rose to HK$8,564,000, an increase of 14% from HK$7,531,000 in the previous year[13] - Finance costs increased significantly to HK$946,000 from HK$10,000 in the same period last year[13] - The cost of inventories and consumables rose sharply to HK$82,197,000 in 2025 from HK$23,055,000 in 2024, indicating an increase of about 257%[51] - The Group's costs of sales increased by approximately 210.7% or HK$59.0 million to HK$87.0 million for the Reporting Period, primarily due to increased revenue from machinery and minerals[152] Assets and Liabilities - As of June 30, 2025, total assets increased to HK$169,454,000 from HK$167,967,000 as of December 31, 2024, representing a growth of approximately 0.87%[16] - Current assets rose to HK$141,003,000, up from HK$145,088,000, indicating a decrease of about 2.5%[18] - Trade receivables increased significantly to HK$33,060,000, compared to HK$24,764,000, reflecting a growth of approximately 33.5%[16] - Total equity attributable to owners of the Company reached HK$139,097,000, up from HK$135,430,000, marking an increase of about 2.47%[21] - Non-current liabilities decreased to HK$1,522,000 from HK$2,162,000, a reduction of approximately 29.6%[18] - Current liabilities decreased to HK$28,835,000 from HK$30,375,000, showing a decline of about 5.1%[18] Cash Flow - For the six months ended June 30, 2025, the company reported a net cash used in operating activities of HK$8,382,000, a significant decrease from the net cash generated of HK$8,304,000 in the same period of 2024[29] - The company incurred a net cash used in investing activities of HK$10,280,000, compared to only HK$129,000 in the prior year, primarily due to the acquisition of a life insurance contract costing HK$8,528,000[29] - Financing activities generated a net cash inflow of HK$10,781,000, a recovery from a net cash outflow of HK$24,247,000 in the previous year, largely due to bank borrowings raised amounting to HK$46,713,000[29] - The total cash and cash equivalents at the end of the period were HK$51,362,000, an increase from HK$38,748,000 at the end of June 2024[29] - Cash and cash equivalents decreased to HK$51,362,000 from HK$59,452,000, a decline of about 13.5%[16] Business Operations - The company is an investment holding company primarily engaged in the manufacturing and trading of slewing rings, mechanical parts, and components, as well as trading of machineries and minerals[31] - The Group is a leading premium slewing ring manufacturer in the PRC, also providing mechanical parts and components for construction and mining sites[93] - The Group expanded its product offerings to include mechanical parts such as sprockets, track shoes, and rollers, alongside slewing rings, on an ODM basis[95] - The Group has developed new products since 2020 to meet customer needs and seize business opportunities[94] - The Group has been supplying slewing rings under OEM basis to leading suppliers in Japan for over 10 years, enhancing its sourcing capabilities[95] Market Conditions - The global economic situation has continued to deteriorate in 2025, affecting the Group's business environment[97] - The economic recovery in Hong Kong and the PRC has not met expectations due to various challenges, including the property market slump[97] - The overall economic environment remains challenging, with high interest rates and uncertainties affecting global business conditions[99] - The Group's management emphasizes the importance of identifying new business opportunities to navigate market competition and economic uncertainties[99] Shareholder Returns - The company paid dividends totaling HK$16,000,000 during the period[21] - The Board does not recommend the payment of an interim dividend for the reporting period, reflecting a conservative approach to cash distribution[60] - The Board does not recommend the payment of an interim dividend for the reporting period, consistent with the previous year[188] Regulatory and Compliance - The company is currently assessing the impact of new accounting standards that have been issued but are not yet effective, which may affect future reporting periods[37] - The company’s legal reserve requires a minimum allocation of 10% of the after-tax profits before distributing dividends to shareholders, ceasing once the total reserve exceeds 50% of the registered capital[26] - The company has not established any agreements or purchased instruments to hedge against foreign exchange risks, primarily involving USD and RMB[189] - The company closely monitors exchange rate fluctuations to manage foreign exchange risks[189] - The directors believe that foreign exchange risk related to USD is not significant due to the peg of HKD to USD[190] Employee and Management - As of June 30, 2025, the Group had 97 employees, an increase from 84 employees as of December 31, 2024[175] - Key management compensation for the six months ended June 30, 2025, was HK$1,437,000, an increase from HK$1,329,000 in the same period of 2024[87]

Financial Performance - The company reported revenue of approximately RMB 1,389,200,000 for the six months ended June 30, 2025, a decrease of about 15.2% compared to RMB 1,638,100,000 for the same period in 2024[9]. - Profit attributable to ordinary shareholders was RMB 171,700,000, an increase from RMB 129,500,000 in the previous year, resulting in earnings per share of RMB 0.17 compared to RMB 0.13[9]. - The company recorded a net profit attributable to ordinary shareholders of approximately RMB 171.7 million for the current period, compared to RMB 129.5 million in the same period of 2024, representing a year-on-year increase of 32.5%[26]. - Earnings per share for the current period were RMB 0.17, up from RMB 0.13 in the first half of 2024, indicating a growth of 30.8%[26]. - Total comprehensive income for the period was RMB 212,792,000, significantly higher than RMB 116,779,000 in the previous year, driven by better operational performance[74]. - The company reported a profit of RMB 171,747,000 for the six months ended June 30, 2025, compared to RMB 129,516,000 for the same period in 2024, reflecting improved profitability[73]. Revenue Breakdown - Steel pipe sales accounted for approximately 90.9% of total revenue, with domestic sales contributing 23.1% and overseas sales 76.9%[12][15]. - Revenue from property development and investment was approximately RMB 126,200,000, with a gross profit of RMB 19,100,000, marking a significant increase from zero in the previous year[21][22]. - The steel pipe segment generated revenue of RMB 1,262,474,000, down 22.9% from RMB 1,637,661,000 in the previous year[96]. - The property development and investment segment reported revenue of RMB 126,709,000, significantly up from RMB 480,000 in the prior year[96]. - Revenue from customer contracts included RMB 1,262,474,000 from the manufacturing and sale of welded steel pipes, down from RMB 1,597,409,000 in 2024, representing a decline of 21%[105][106]. Cost and Expenses - Gross profit from steel pipe sales was approximately RMB 235,800,000, a decrease of about 23.1% from RMB 306,800,000 in the previous year, maintaining a gross margin of approximately 18.7%[17]. - Selling and distribution expenses decreased by approximately 29.5% to RMB 21,700,000, attributed to reduced commissions and consulting fees[23]. - Administrative expenses rose by approximately 43.8% to RMB 139,300,000, mainly due to increased R&D costs[23]. - Financing costs decreased by approximately 6.1% to RMB 54,600,000, due to a reduction in average borrowing balances[23]. - The cost of goods sold for the six months ended June 30, 2025, was RMB 966,752,000, a decrease of 22.7% compared to RMB 1,250,491,000 for the same period in 2024[119]. - Research and development expenses increased significantly to RMB 62,484,000 for the six months ended June 30, 2025, compared to RMB 16,173,000 in the same period of 2024, reflecting a growth of 286.5%[119]. Assets and Liabilities - The company's total borrowings as of June 30, 2025, amounted to approximately RMB 1,697.4 million, a decrease from RMB 1,865 million as of December 31, 2024[48]. - The company's asset-liability ratio as of June 30, 2025, was approximately 27.0%, a slight decrease from 28.7% as of December 31, 2024, reflecting improved financial stability[48]. - Total assets as of June 30, 2025, amounted to RMB 6,289,169,000, a decrease from RMB 6,505,939,000 as of June 30, 2024[94]. - Total liabilities were RMB 4,837,246,000, compared to RMB 5,266,808,000 in the previous year, indicating a reduction in financial obligations[94]. - Non-current liabilities decreased to RMB 1,042,982,000 from RMB 1,153,886,000, showing a reduction in long-term debt obligations[72]. Cash Flow and Financing - Operating cash flow for the six months ended June 30, 2025, was RMB 155,449,000, up from RMB 116,281,000 in 2024, indicating a growth of 33.7%[76]. - The company secured new bank loans totaling RMB 13,500,000 and renewed existing loans of RMB 69,800,000, indicating ongoing efforts to maintain liquidity[82]. - The company’s financing activities resulted in a net cash outflow of RMB (201,881,000) for the six months ended June 30, 2025, compared to RMB (29,545,000) in 2024, indicating increased financing pressures[77]. - The company anticipates sufficient funds to meet its debt obligations in the next 12 months, supported by positive cash flow from its steel pipe business and ongoing real estate sales[81]. Market Position and Strategy - The company anticipates that the construction of oil and gas pipelines will continue to be supported by China's focus on energy security and the promotion of clean energy, despite ongoing global uncertainties[34]. - The company is positioned to benefit from the ongoing construction of oil and gas pipelines, as major pipeline projects are expected to be completed and put into operation in 2024[36]. - The company plans to participate in more global oil and gas engineering projects to expand its customer base and market share, aiming to become a leading global steel pipe manufacturer[40]. - The company aims to meet the "dual carbon" strategic goals of peak carbon emissions by 2030 and carbon neutrality by 2060, focusing on green low-carbon development and expanding its insulation pipe business to meet demand for green products[39]. Corporate Governance - The company has complied with all corporate governance codes during the reporting period, ensuring effective management and decision-making[61]. - The audit committee reviewed the unaudited interim results for the six months ended June 30, 2025, ensuring the adequacy and effectiveness of internal controls and financial reporting systems[65]. Shareholder Information - The company does not recommend any interim dividend for the six months ending June 30, 2025, consistent with the previous period[43]. - The total number of shares available for issuance under the share option scheme is capped at 101,114,200 shares, which is 10% of the issued share capital as of the adoption date[58][60]. - Bournam Profits Limited holds 701,911,000 shares, representing 69.42% of the company's issued share capital, fully owned by Mr. Chen Chang[55][57].

Financial Performance - For the six months ended June 30, 2025, the company reported revenue of RMB 3.586 billion, a decrease of RMB 593 million or 14.19% compared to RMB 4.179 billion in the same period last year[10]. - The net profit for the same period was RMB 239 million, down RMB 132 million or 35.58% from RMB 371 million year-on-year[10]. - The total operating profit for the six months was RMB 294 million, down from RMB 423 million in the same period last year[11]. - Gross profit for the same period was RMB 693 million, down RMB 122 million or 14.97% from RMB 815 million year-on-year, with a gross margin of 19.32%, slightly down from 19.51%[17]. - Investment income for the six months was RMB 442.7 million, down RMB 270.8 million or 37.95% from RMB 713.5 million year-on-year, primarily due to a decrease in net profit from joint ventures[22]. - The company reported a total comprehensive income of ¥242,728,519.50 for the current period[107]. Revenue Breakdown - The design, surveying, and consulting segment generated revenue of RMB 1.994 billion, a slight decrease of RMB 25 million or 1.24% from RMB 2.018 billion in 2024[14]. - The engineering contracting segment's revenue was RMB 1.593 billion, a significant decline of RMB 568 million or 26.28% from RMB 2.161 billion in the previous year[15]. - The urban rail transit engineering segment earned RMB 1.410 billion, down RMB 109 million or 7.18% from RMB 1.519 billion in the prior year[14]. - The industrial and civil construction and municipal engineering segment saw an increase in revenue to RMB 583 million, up RMB 85 million or 17.07% from RMB 498 million year-on-year[14]. Operational Efficiency and Strategy - The company aims to enhance its operational efficiency and quality amid a challenging investment environment in the urban rail transit sector[10]. - The company is focusing on expanding into emerging businesses such as intelligent computing, photovoltaic, autonomous driving, and urban renewal[14]. - The company aims to stabilize the design consulting market and expand into new business areas such as urban renewal and digital intelligence[42]. - The company plans to enhance project management and ensure high-quality performance on existing projects, focusing on cities like Beijing and Guangzhou[43]. - The company is committed to improving cash flow and reducing project settlement scales to ensure financial stability[45]. Cash Flow and Liquidity - The net cash outflow from operating activities was RMB 1.039 billion, compared to RMB 721.1 million in the previous year, indicating a significant increase in cash outflow[27]. - Cash and cash equivalents decreased from CNY 3.16 billion to CNY 1.93 billion, reflecting a significant reduction in liquidity[85]. - Cash inflow from operating activities totaled ¥3,159,428,242.64, down from ¥4,344,606,218.62, indicating a decline of about 27.3% year-over-year[100]. - Cash outflow from operating activities was ¥4,199,230,404.84, compared to ¥5,065,682,628.81, a decrease of approximately 17.1% year-over-year[100]. Debt and Liabilities - As of June 30, 2025, the group had interest-bearing borrowings of RMB 6.658 billion, with a debt-to-equity ratio of 82.99%[31]. - The group's total borrowings as of June 30, 2025, were RMB 6.658 billion, with interest rates ranging from 1.81% to 4.90%[33]. - Total liabilities decreased from CNY 16,608,520,711.14 to CNY 15,609,231,104.36, a decrease of about 6.01%[92]. Research and Development - The group's R&D expenses decreased to RMB 1.419 billion, a reduction of RMB 57.4 million or 3.89% from RMB 1.476 billion in the previous year[20]. - The company reported a significant reduction in research and development expenses to ¥141,896,162.94 from ¥147,640,596.66, a decrease of approximately 3.9% year-over-year[96]. Market and Industry Trends - The urban rail transit industry is shifting from rapid growth to high-quality development, emphasizing technological innovation and operational efficiency[48]. - The surveying and mapping industry is expected to maintain growth in 2025, driven by technological advancements and policy support, despite facing intense market competition[51]. - The focus of urban development is shifting from expansion to quality improvement, with an emphasis on urban renewal and infrastructure upgrades[59]. Governance and Compliance - The company has established a governance structure that includes a shareholders' meeting, board of directors, supervisory board, and senior management[75]. - The company has adopted the "Standard Code" as the securities trading code for directors and supervisors[75]. - The company has made amendments to its Articles of Association to improve its governance structure[77]. Shareholder Information - 城建集团 holds 571,031,118 shares, representing 59.44% of the domestic shares and 42.34% of the total issued share capital[70]. - 京投公司 holds 87,850,942 shares, representing 9.14% of the domestic shares and 6.51% of the total issued share capital[70]. - The company is actively taking measures to restore public float, including potential A-share issuance and negotiations with major shareholders to sell their shares back to the public[81]. Accounting and Financial Reporting - The company has not changed its accounting policies during the reporting period, and the financial statements are prepared in accordance with Chinese accounting standards[196]. - The financial statements are prepared based on the accrual basis of accounting, in accordance with the current enterprise accounting standards[130]. - The interim financial statements for the six months ending June 30, 2025, were reviewed by the auditor, Dahua CPA, confirming compliance with accounting standards[79].

[Company Information](index=3&type=section&id=Company%20Information) [Executive Directors](index=3&type=section&id=Executive%20Directors) This section lists the company's executive directors, including Mr. Chen Yonghui (Chairman and CEO), Mr. Huang Fangjie, Mr. Li Hairong, and Mr. Guo Haiqiu - Executive directors include Mr. Chen Yonghui (Chairman and Chief Executive Officer), Mr. Huang Fangjie, Mr. Li Hairong, and Mr. Guo Haiqiu[3](index=3&type=chunk) [Independent Non-Executive Directors](index=3&type=section&id=Independent%20Non-Executive%20Directors) This section lists the company's independent non-executive directors, including Mr. Du Jianqing, Ms. Wu Ruifeng, and Professor Wu Jintao - Independent non-executive directors include Mr. Du Jianqing, Ms. Wu Ruifeng, and Professor Wu Jintao[3](index=3&type=chunk) [Audit Committee](index=3&type=section&id=Audit%20Committee) This section details the composition of the company's Audit Committee, chaired by Ms. Wu Ruifeng, with Mr. Du Jianqing and Professor Wu Jintao as members - The Audit Committee is chaired by Ms. Wu Ruifeng, with members including Mr. Du Jianqing and Professor Wu Jintao[3](index=3&type=chunk) [Remuneration Committee](index=3&type=section&id=Remuneration%20Committee) This section details the composition of the company's Remuneration Committee, chaired by Professor Wu Jintao, with Mr. Guo Haiqiu and Ms. Wu Ruifeng as members - The Remuneration Committee is chaired by Professor Wu Jintao, with members including Mr. Guo Haiqiu and Ms. Wu Ruifeng[3](index=3&type=chunk) [Nomination Committee](index=3&type=section&id=Nomination%20Committee) This section details the composition of the company's Nomination Committee, chaired by Mr. Chen Yonghui, with Mr. Du Jianqing and Professor Wu Jintao as members - The Nomination Committee is chaired by Mr. Chen Yonghui, with members including Mr. Du Jianqing and Professor Wu Jintao[3](index=3&type=chunk) [Legal Adviser as to Hong Kong Law](index=3&type=section&id=Legal%20Adviser%20as%20to%20Hong%20Kong%20Law) The company's legal adviser as to Hong Kong law is Zhong Lun Law Firm (Limited Liability Partnership) - The company's Hong Kong legal adviser is Zhong Lun Law Firm (Limited Liability Partnership)[3](index=3&type=chunk) [Joint Company Secretaries](index=3&type=section&id=Joint%20Company%20Secretaries) The company's joint company secretaries are Ms. Ge Ping and Ms. Lin Zhiqin - The joint company secretaries are Ms. Ge Ping and Ms. Lin Zhiqin[3](index=3&type=chunk) [Authorised Representatives](index=3&type=section&id=Authorised%20Representatives) The company's authorised representatives are Mr. Chen Yonghui and Ms. Lin Zhiqin - The authorised representatives are Mr. Chen Yonghui and Ms. Lin Zhiqin[3](index=3&type=chunk) [Stock Code](index=3&type=section&id=Stock%20Code) The company's stock code is 2392 - The company's stock code is 2392[3](index=3&type=chunk) [Company Website](index=3&type=section&id=Company%20Website) The company's website is https://ir.wxchina.com/ - The company's website is https://ir.wxchina.com/[3](index=3&type=chunk) [Registered Office](index=3&type=section&id=Registered%20Office) The company's registered office is located in the Cayman Islands - The registered office is located at Harneys Fiduciary (Cayman) Limited, Grand Cayman KY1-1002, Cayman Islands[3](index=3&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 in Haizhu District, Guangzhou, China - The headquarters and principal place of business in China are located at Room 904, 9/F, No. 38 Haizhou Road, Haizhu District, Guangzhou, Guangdong Province, China[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 in Jardine House, Central, Hong Kong - The principal place of business in Hong Kong is located at 4/F, Jardine House, 1 Connaught Place, Central, Hong Kong[4](index=4&type=chunk) [Principal Share Registrar and Transfer Office](index=4&type=section&id=Principal%20Share%20Registrar%20and%20Transfer%20Office) The company's principal share registrar and transfer office is located in the Cayman Islands - The principal share registrar and transfer office is located at Harneys Fiduciary (Cayman) Limited, Grand Cayman KY1-1002, Cayman Islands[4](index=4&type=chunk) [Hong Kong Share Registrar](index=4&type=section&id=Hong%20Kong%20Share%20Registrar) The company's Hong Kong share registrar is Computershare Hong Kong Investor Services Limited - The Hong Kong share registrar is Computershare Hong Kong Investor Services Limited[4](index=4&type=chunk) [Auditor](index=4&type=section&id=Auditor) The company's auditor is PricewaterhouseCoopers - The auditor is PricewaterhouseCoopers[4](index=4&type=chunk) [Principal Bankers](index=4&type=section&id=Principal%20Bankers) The company's principal banker is China Merchants Bank - The principal banker is China Merchants Bank[4](index=4&type=chunk) [Financial Highlights](index=5&type=section&id=Financial%20Highlights) [Summary of Condensed Consolidated Statement of Comprehensive Income](index=5&type=section&id=Summary%20of%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's revenue decreased by 36.5% year-on-year to RMB410,907 thousand, gross profit decreased by 26.0% to RMB74,950 thousand, operating loss expanded to RMB26,968 thousand, loss attributable to owners of the company was RMB25,874 thousand, and loss per share was RMB0.048 Summary of Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Revenue | 410,907 | 647,469 | | Gross Profit | 74,950 | 101,249 | | Operating Loss | (26,968) | (4,106) | | Loss Before Tax | (29,084) | (5,912) | | Loss Attributable to Owners of the Company | (25,874) | (6,444) | | Loss Per Share (RMB per share) | (0.048) | (0.012) | [Summary of Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Summary%20of%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets were RMB624,742 thousand, a slight decrease from the end of 2024, with equity attributable to owners of the company at RMB306,665 thousand and total liabilities at RMB325,273 thousand Summary of Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Non-current Assets | 32,569 | 39,765 | | Current Assets | 592,173 | 594,043 | | Total Assets | 624,742 | 633,808 | | Equity Attributable to Owners of the Company | 306,665 | 331,621 | | Non-controlling Interests | (7,196) | (3,552) | | Total Equity | 299,469 | 328,069 | | Non-current Liabilities | 2,137 | 8,026 | | Current Liabilities | 323,136 | 297,713 | | Total Liabilities | 325,273 | 305,739 | | Total Equity and Liabilities | 624,742 | 633,808 | [Business Review and Outlook](index=6&type=section&id=Business%20Review%20and%20Outlook) [Business Review](index=6&type=section&id=Business%20Review) During the reporting period, the company's revenue decreased by 36.5% year-on-year to RMB410.9 million due to domestic telecom industry regulatory policy adjustments, while focusing on AI+SaaS business to improve gross profit margin and achieve positive operating cash flow, continuing to strengthen technological innovation and provide digital intelligence services to customers in finance, FMCG, government & enterprise, and TMT sectors - In the first half of the year, the global digital economy maintained strong growth, with AI technology transitioning from breakthroughs to large-scale applications, empowering various industries[6](index=6&type=chunk) - Domestic revenue from PaaS and some SaaS services declined due to adjustments in domestic telecom industry regulatory policies[6](index=6&type=chunk) - Overseas cloud communication business achieved rapid customer and revenue growth, covering Southeast Asia, Latin America, East Asia, and the Middle East regions[6](index=6&type=chunk) First Half Revenue Scale | Indicator | H1 2025 (RMB million) | YoY Change | | :--- | :--- | :--- | | Revenue Scale | 410.9 | -36.5% | - Continued focus on AI+SaaS business led to a steady increase in gross profit margin, driving up the overall gross profit margin[7](index=7&type=chunk) - The Board adopted prudent and strict financial controls and strengthened cash flow management, resulting in positive operating cash flow in the first half of 2025[7](index=7&type=chunk) - During the reporting period, **410 authorized patents and computer software copyrights** were obtained, with **11 new additions**, maintaining product competitive advantages[7](index=7&type=chunk) - Provided digital intelligence transformation and upgrade services to a cumulative total of **2,351 customers** across four major industries: finance, FMCG, government & enterprise, and TMT[7](index=7&type=chunk) [SaaS Business](index=7&type=section&id=SaaS%20Business) SaaS business, comprising marketing cloud, sales cloud, and customer service cloud, generated RMB245.0 million in revenue, a 32.9% year-on-year decrease due to telecom policy impacts and proactive reduction of loss-making projects, while its gross profit margin improved to 26.5% SaaS Business Revenue and Gross Profit Margin | Indicator | H1 2025 (RMB million) | YoY Change | Gross Profit Margin | | :--- | :--- | :--- | :--- | | SaaS Revenue | 245.0 | -32.9% | 26.5% | | Gross Profit Margin YoY Increase | - | - | 3.4 percentage points | - Total revenue from core customers accounted for **95.0%** of total customer revenue, with an average contribution of **RMB1.3 million** per core customer[8](index=8&type=chunk) - The number of continuously focused SaaS customers reached **1,558**, with an average contribution of **RMB1.1 million** per SaaS core customer[8](index=8&type=chunk) [Marketing Cloud](index=7&type=section&id=Marketing%20Cloud) Marketing Cloud revenue decreased by 38.1% to RMB189.7 million due to telecom regulatory policy adjustments, while its ICC platform completed latest protocol adaptations for mainstream telecom operators, upgraded 5G messaging capabilities, increased trusted computing adaptations to 14 items, and achieved over 90% project win rate Marketing Cloud Revenue | Indicator | H1 2025 (RMB million) | YoY Change | | :--- | :--- | :--- | | Marketing Cloud Revenue | 189.7 | -38.1% | - ICC (Integrated Communication Center) completed the latest protocol adaptation for direct connection mode with mainstream domestic telecom operators, and **5G messaging capabilities were fully upgraded**[9](index=9&type=chunk) - ICC improved its trusted computing ecosystem, increasing trusted computing adaptations to **14 items**, completed HarmonyOS adaptation for components like Jiyan and iPush, and achieved a project win rate of **over 90%**[9](index=9&type=chunk) [Sales Cloud](index=8&type=section&id=Sales%20Cloud) Sales Cloud revenue decreased by 33.6% to RMB28.6 million due to proactive reduction of loss-making projects, but its gross profit margin improved, with core product [Smart 100] enhancing functions and adding configuration components, and Smart U-Customer upgrading based on Huawei Ascend AI ecosystem and DeepSeek large model to achieve 'second-level response' and multi-language versions Sales Cloud Revenue and ARR Contribution | Indicator | H1 2025 (RMB million) | YoY Change | ARR Contribution | | :--- | :--- | :--- | :--- | | Sales Cloud Revenue | 28.6 | -33.6% | 62.9% | | ARR Contribution YoY Increase | - | - | 12.4 percentage points | - Sales Cloud's core product [Smart 100] added plug-and-play configuration components such as 'Super Forms' and 'Surveys'[12](index=12&type=chunk) - Smart U-Customer was fully upgraded based on Huawei Ascend AI ecosystem and DeepSeek large model, achieving 'second-level response' for customer profile analysis and business opportunity prediction, and released multi-language versions[12](index=12&type=chunk) - Based on self-developed Xuantao large model and open-source large models like DeepSeek, AI products such as **SKU Super Model** and **'AI Reshoot Detective'** were launched, increasing the number of AI standard products to **12**[13](index=13&type=chunk) - Multiple AI agents such as 'Development Assistant', 'Market Survey Assistant', and 'Voice Operation Assistant' were built based on the aPaaS platform, and Smart U-Customer's business assistant 'Smart Xiao Xuan' has been successfully implemented[13](index=13&type=chunk) - AIoT Smart Refrigerator continued to expand offline terminal store coverage, iterated sales promotion application scenarios, and optimized customer advertising costs[14](index=14&type=chunk) [Customer Service Cloud](index=9&type=section&id=Customer%20Service%20Cloud) Customer Service Cloud revenue significantly increased by 71.7% to RMB26.6 million, with its post-loan management SaaS business gaining market share and seat scale growing by 19.9%, while contact points expanded from outbound calls to all-touchpoints, integrating DeepSeek and other open-source large models to develop a speech configuration robot that reduces workload by 90% Customer Service Cloud Revenue and Seat Scale Growth | Indicator | H1 2025 (RMB million) | YoY Change | | :--- | :--- | :--- | | Customer Service Cloud Revenue | 26.6 | +71.7% | | Seat Scale YoY Increase | - | +19.9% | - Customer Service Cloud's contact points expanded from outbound calls to all-touchpoints, achieving breakthroughs in new contact methods such as SMS and flash messages for post-loan management[15](index=15&type=chunk) - Integrated DeepSeek and other open-source large models to develop a speech configuration robot, which has been implemented for customers and can help reduce **90%** of speech configuration workload[15](index=15&type=chunk) - Reached a strategic cooperation with Tencent Cloud to collaborate on AI products and services, cloud communication, and smart retail[15](index=15&type=chunk) - Partnered with Huawei Ascend to jointly upgrade and iterate product versions, with data-related products already launched on Guangzhou and Shenzhen Data Exchanges[15](index=15&type=chunk) [Business Outlook](index=10&type=section&id=Business%20Outlook) For the second half of 2025, the company will continue to deepen its 'product standardization, refined operations, and business globalization' strategy, prioritizing profit to achieve high-quality development, focusing on enriching core product standardized components, strengthening key AI product operations, innovating AI+finance application scenarios, and emphasizing domestic and international ecosystem building to enhance market responsiveness - Deeply implement the 'AI+' initiative, with large models and AI agents fully integrating into the real economy[16](index=16&type=chunk) - In the second half of the year, the company will deepen its development goals of 'product standardization, refined operations, and business globalization', prioritizing profit to achieve high-quality development[16](index=16&type=chunk) [Enrich Core Product Standardized Components to Enhance Profit Margins](index=10&type=section&id=Enrich%20Core%20Product%20Standardized%20Components%20to%20Enhance%20Profit%20Margins) The company will focus on enhancing the standardization of core products across all business lines by extracting common requirements to create more standardized product components, coupled with standardized delivery processes, to optimize delivery cycles, reduce project costs, and increase profit margins, while also enriching the AI standard product matrix based on customer business scenario needs to achieve rapid product scaling - Focus on enhancing the standardization of core products across all business lines, creating more standardized product components to optimize delivery cycles, reduce project costs, and **increase profit margins**[16](index=16&type=chunk) - Continue to enrich the AI standard product matrix based on actual customer business scenario needs, aiming for rapid product scaling[16](index=16&type=chunk) [Strengthen Key AI Product Operations and Innovate AI+Finance Application Scenarios](index=10&type=section&id=Strengthen%20Key%20AI%20Product%20Operations%20and%20Innovate%20AI%2BFinance%20Application%20Scenarios) The company will strengthen market expansion and operations for key AI products like SKU Super Model and 'AI Reshoot Detective' to establish them as star AI products, while solidifying AI+consumer technology applications and developing AI product applications for the financial industry, including intelligent agent development, smart customer service optimization, and digital humans, to deepen customer cooperation - Strengthen market expansion and operations for key AI products such as **SKU Super Model** and **'AI Reshoot Detective'**, aiming to build them into the company's star AI products[17](index=17&type=chunk) - Leverage customer resources in the financial industry to develop AI product applications for the financial sector, including intelligent agent development, smart customer service optimization and upgrades, and digital humans[17](index=17&type=chunk) [Emphasize Domestic and International Ecosystem Building to Enhance Market Responsiveness](index=10&type=section&id=Emphasize%20Domestic%20and%20International%20Ecosystem%20Building%20to%20Enhance%20Market%20Responsiveness) The company will continue to build its ecosystem, maintaining close ties with upstream and downstream partners, strengthening interaction and cooperation with telecom operators, cloud vendors, and peers in the second half of the year to promote stable group business development, and plans to achieve localized operations in some overseas regions to deepen cooperation with resource providers and further expand customer base - Continuously build the ecosystem, strengthening interaction and cooperation with telecom operators, cloud vendors, and peers to promote stable group business development[18](index=18&type=chunk) - Plan to achieve localized operations in some overseas regions, deepening cooperation with resource providers and further expanding customer sources[18](index=18&type=chunk) [Management Discussion and Analysis](index=10&type=section&id=Management%20Discussion%20and%20Analysis) [Financial Overview](index=11&type=section&id=Financial%20Overview) This section analyzes the company's financial performance during the reporting period, with total revenue decreasing by 36.5% to RMB410.9 million due to domestic telecom industry regulatory policy adjustments, leading to a decline in both PaaS and SaaS revenues, but an increase in SaaS business's proportion and overall gross profit margin to 18.2%, while operating expenses decreased, and loss attributable to owners of the company expanded to RMB25.9 million - The Group's total revenue decreased by **36.5%** to **RMB410.9 million**, primarily due to adjustments in domestic telecom industry regulatory policies[19](index=19&type=chunk) - SaaS business accounted for **59.6%** of total revenue (H1 2024: 56.4%), while PaaS accounted for **40.4%** (H1 2024: 43.6%)[19](index=19&type=chunk) Segment Revenue Details (For the six months ended June 30) | Segment | 2025 (RMB'000) | 2025 (%) | 2024 (RMB'000) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | PaaS | 165,951 | 40.4 | 282,411 | 43.6 | | SaaS | 244,956 | 59.6 | 365,058 | 56.4 | | Total | 410,907 | 100.0 | 647,469 | 100.0 | Gross Profit and Gross Profit Margin (For the six months ended June 30) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | 2025 Gross Profit Margin | 2024 Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | | Overall Gross Profit | 75,000 | 101,200 | 18.2% | 15.6% | | PaaS Gross Profit Margin | - | - | 6.0% | 6.0% | | SaaS Gross Profit Margin | - | - | 26.5% | 23.1% | - Loss attributable to owners of the company for the period was **RMB25.9 million**, an increase from **RMB6.4 million** in the same period of 2024, primarily due to increased telecom industry regulation leading to reduced sales of PaaS and some SaaS services[33](index=33&type=chunk) [Revenue](index=11&type=section&id=Revenue) The Group's revenue primarily derives from PaaS and SaaS operating segments, with total revenue decreasing by 36.5% to RMB410.9 million for the six months ended June 30, 2025, mainly due to domestic telecom industry regulatory policy adjustments, and SaaS revenue proportion increasing to 59.6% - The Group's revenue is derived from two operating segments, PaaS and SaaS, with SaaS being the larger segment, accounting for **59.6%**[19](index=19&type=chunk) Segment Revenue (For the six months ended June 30) | Segment | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | PaaS | 165,951 | 282,411 | | SaaS | 244,956 | 365,058 | | Total | 410,907 | 647,469 | - PaaS revenue decreased by **41.2%** to **RMB166.0 million**, primarily due to adjustments in domestic telecom industry regulatory policies[20](index=20&type=chunk) - SaaS revenue decreased by **32.9%** to **RMB245.0 million**, mainly due to the company's proactive reduction of loss-making projects[22](index=22&type=chunk) SaaS Revenue Breakdown (For the six months ended June 30) | Solution | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Marketing Cloud | 189,743 | 306,495 | | Sales Cloud | 28,590 | 43,061 | | Customer Service Cloud | 26,623 | 15,502 | | Total | 244,956 | 365,058 | [Cost of Sales](index=12&type=section&id=Cost%20of%20Sales) For the six months ended June 30, 2025, the Group's cost of sales decreased by 38.5% to RMB336.0 million, consistent with the reduction in PaaS and SaaS businesses, primarily due to lower telecom resources, labor, and outsourced implementation costs - The Group's cost of sales decreased by **38.5%** to **RMB336.0 million**, consistent with the reduction in PaaS and SaaS businesses[23](index=23&type=chunk) - PaaS cost of sales decreased by **41.2%** to **RMB156.0 million**, primarily due to lower telecom resource costs[23](index=23&type=chunk) - SaaS cost of sales decreased by **35.9%** to **RMB180.0 million**, primarily due to reduced telecom resource costs, labor costs, and outsourced implementation costs[23](index=23&type=chunk) [Gross Profit and Gross Profit Margin](index=13&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) For the six months ended June 30, 2025, the Group's overall gross profit decreased by 26.0% to RMB75.0 million, but the overall gross profit margin increased from 15.6% to 18.2%, with PaaS gross profit margin remaining at 6.0% and SaaS gross profit margin increasing to 26.5% due to improved profitability of the core SaaS business Gross Profit and Gross Profit Margin (For the six months ended June 30) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | 2025 Gross Profit Margin | 2024 Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | | Overall Gross Profit | 75,000 | 101,200 | 18.2% | 15.6% | | PaaS Gross Profit Margin | - | - | 6.0% | 6.0% | | SaaS Gross Profit Margin | - | - | 26.5% | 23.1% | [Selling and Distribution Expenses](index=13&type=section&id=Selling%20and%20Distribution%20Expenses) For the six months ended June 30, 2025, selling and distribution expenses decreased by 2.1% to RMB48.8 million, primarily due to reduced business entertainment and travel expenses for sales and marketing personnel Selling and Distribution Expenses (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 48.8 | 49.9 | -2.1% | [Administrative Expenses](index=13&type=section&id=Administrative%20Expenses) For the six months ended June 30, 2025, administrative expenses decreased by 2.1% to RMB22.9 million, primarily due to reduced employee benefit expenses Administrative Expenses (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Administrative Expenses | 22.9 | 23.4 | -2.1% | [Research and Development Expenses](index=13&type=section&id=Research%20and%20Development%20Expenses) For the six months ended June 30, 2025, research and development expenses decreased by 12.8% to RMB28.6 million, primarily due to effective optimization of R&D processes and organization Research and Development Expenses (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Research and Development Expenses | 28.6 | 32.8 | -12.8% | [Net Impairment Loss on Financial Assets](index=13&type=section&id=Net%20Impairment%20Loss%20on%20Financial%20Assets) For the six months ended June 30, 2025, net impairment loss on financial assets slightly increased by 0.7% to RMB2.7 million Net Impairment Loss on Financial Assets (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Net Impairment Loss on Financial Assets | 2.7 | 2.7 | +0.7% | [Other Income](index=13&type=section&id=Other%20Income) For the six months ended June 30, 2025, other income decreased by 42.9% to RMB1.6 million, primarily due to reduced government grants and VAT refunds Other Income (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Other Income | 1.6 | 2.9 | -42.9% | [Finance Costs—Net](index=14&type=section&id=Finance%20Costs%E2%80%94Net) For the six months ended June 30, 2025, net finance costs were RMB2.1 million, an increase from RMB1.8 million in the same period of 2024 Finance Costs—Net (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Finance Costs—Net | 2.1 | 1.8 | [Income Tax Expense](index=14&type=section&id=Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense was RMB0.2 million, consistent with the same period in 2024 Income Tax Expense (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Income Tax Expense | 0.2 | 0.2 | [Loss Attributable to Owners of the Company for the Period](index=14&type=section&id=Loss%20Attributable%20to%20Owners%20of%20the%20Company%20for%20the%20Period) During the reporting period, the Group recorded a loss attributable to owners of the company of RMB25.9 million, an increase from RMB6.4 million in the same period of 2024, primarily due to increased telecom industry regulation leading to reduced sales of PaaS and some SaaS services in the first half of 2025 Loss Attributable to Owners of the Company (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Loss Attributable to Owners of the Company | 25.9 | 6.4 | - The expanded loss was primarily due to increased telecom industry regulation in the first half of 2025, leading to a corresponding reduction in PaaS and some SaaS sales[33](index=33&type=chunk) [Liquidity and Financial Resources](index=14&type=section&id=Liquidity%20and%20Financial%20Resources) This section outlines the company's liquidity and financial resources, noting an increase in cash and cash equivalents, a slight decrease in total debt but a slight increase in the gearing ratio, with no significant contingent liabilities, capital commitments, major investments, or M&A activities during the reporting period, and no assets pledged - The Group adopts prudent financial management policies, actively monitors its liquidity position, and maintains adequate financial resources[34](index=34&type=chunk) [Cash and Cash Equivalents](index=14&type=section&id=Cash%20and%20Cash%20Equivalents) As of June 30, 2025, the Group's cash and cash equivalents were RMB94.6 million, a 32.4% increase from RMB71.4 million as of December 31, 2024 Cash and Cash Equivalents | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 94.6 | 71.4 | +32.4% | [Indebtedness](index=15&type=section&id=Indebtedness) As of June 30, 2025, the Group's total borrowings were RMB143,619 thousand, lease liabilities were RMB7,320 thousand, and total indebtedness was RMB150,939 thousand, a slight decrease from the end of 2024 Debt Composition | Indicator | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Borrowings | 143,619 | 144,040 | | Lease Liabilities | 7,320 | 15,224 | | Total | 150,939 | 159,264 | [Contingent Liabilities](index=15&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities (December 31, 2024: nil)[37](index=37&type=chunk) [Capital Commitments](index=15&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group had no capital commitments - As of June 30, 2025, the Group had no capital commitments (December 31, 2024: nil)[38](index=38&type=chunk) [Gearing Ratio](index=15&type=section&id=Gearing%20Ratio) As of June 30, 2025, the Group's gearing ratio was 50.4%, a slight increase from 48.5% at the end of 2024 Gearing Ratio | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gearing Ratio | 50.4% | 48.5% | [Exchange Rate Fluctuation Risk](index=15&type=section&id=Exchange%20Rate%20Fluctuation%20Risk) The Group primarily conducts business in RMB and had no significant non-RMB assets or liabilities as of June 30, 2025, nor had it entered into any forward foreign exchange contracts to hedge foreign exchange risk - The Group primarily operates in RMB, has no significant non-RMB assets or liabilities, and has not entered into any forward foreign exchange contracts to hedge foreign exchange risk[40](index=40&type=chunk) [Material Investments](index=15&type=section&id=Material%20Investments) During the reporting period, the Group did not make any material investments - During the reporting period, the Group did not make any material investments[41](index=41&type=chunk) [Material Acquisitions and Disposals](index=16&type=section&id=Material%20Acquisitions%20and%20Disposals) During the reporting period, the Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures - During the reporting period, the Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures[42](index=42&type=chunk) [Pledge of Assets](index=16&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group had not pledged any of its assets - As of June 30, 2025, the Group had not pledged any of its assets (December 31, 2024: nil)[43](index=43&type=chunk) [Plans for Future Material Investments and Capital Assets](index=16&type=section&id=Plans%20for%20Future%20Material%20Investments%20and%20Capital%20Assets) As of June 30, 2025, the Group had no plans for future material investments and capital assets other than those disclosed in this report, but will continue to seek investment opportunities that align with the overall interests of shareholders - As of June 30, 2025, the Group had no plans for future material investments and capital assets other than those disclosed in this report[44](index=44&type=chunk) - The Group will continue to seek investment opportunities that align with the overall interests of shareholders[44](index=44&type=chunk) [Other Information](index=17&type=section&id=Other%20Information) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company or its Associated Corporations](index=17&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20or%20its%20Associated%20Corporations) This section discloses the interests of the company's directors and chief executive in the shares, underlying shares, and debentures of the company or its associated corporations as of June 30, 2025, with Mr. Chen Yonghui, Mr. Huang Fangjie, and Mr. Li Hairong, as parties acting in concert, collectively holding 53.35% of the share interests, and Mr. Guo Haiqiu holding 2.41% Directors' and Chief Executive's Share Interests | Director's Name | Capacity/Nature of Interest | Number of Shares Held | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | | Mr. Chen Yonghui | Interest in controlled corporation and parties acting in concert | 298,932,230 | 53.35% | | Mr. Huang Fangjie | Interest in controlled corporation and parties acting in concert | 298,932,230 | 53.35% | | Mr. Li Hairong | Interest in controlled corporation and parties acting in concert | 298,932,230 | 53.35% | | Mr. Guo Haiqiu | Interest in controlled corporation | 13,500,000 | 2.41% | - Mr. Chen Yonghui, Mr. Huang Fangjie, and Mr. Li Hairong are parties acting in concert with each other[47](index=47&type=chunk) [Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares of the Company](index=19&type=section&id=Substantial%20Shareholders'%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares%20of%20the%20Company) This section discloses the interests of substantial shareholders in the company's shares and underlying shares as of June 30, 2025, with Zhenghao Global, Honghan Global, and Shangying Global holding 18.02%, 11.83%, and 10.67% of shares respectively, Baoya Group Holdings Limited and its controlled person Mr. Song Xiaohu holding 9.53%, and Guangzhou Xuandong and its controlled person Ms. Ge Ping holding 5.62% Substantial Shareholders' Share Interests | Shareholder Name/Name | Capacity/Nature of Interest | Number of Shares Held | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | | Zhenghao Global | Beneficial owner | 100,968,000 | 18.02% | | Honghan Global | Beneficial owner | 66,311,770 | 11.83% | | Shangying Global | Beneficial owner | 55,542,460 | 10.67% | | Baoya Group Holdings Limited | Beneficial owner | 53,417,170 | 9.53% | | Mr. Song Xiaohu | Interest in controlled corporation | 53,417,170 | 9.53% | | Guangzhou Xuandong | Beneficial owner | 31,500,000 | 5.62% | | Ms. Ge Ping | Interest in controlled corporation | 31,500,000 | 5.62% | [Use of Proceeds from Global Offering](index=20&type=section&id=Use%20of%20Proceeds%20from%20Global%20Offering) This section details the use of net proceeds of approximately HKD163.3 million from the company's global offering, with most funds utilized as described in the prospectus, including for enhancing aPaaS and cPaaS platforms, developing DI capabilities, improving AI capabilities, strengthening SaaS solutions, increasing sales and marketing capabilities, and working capital, while HKD16.4 million remains unutilized under strategic investments and acquisitions - Net proceeds from the global offering of approximately **HKD163.3 million** have been and are intended to be used in the manner set out in the prospectus[51](index=51&type=chunk) Status of Use of Net Proceeds from Global Offering (As of June 30, 2025) | Item | Net Proceeds (HKD million) | Utilized as of June 30, 2025 (HKD million) | Unutilized as of June 30, 2025 (HKD million) | | :--- | :--- | :--- | :--- | | Enhance aPaaS and cPaaS platforms | 13.2 | 13.2 | 0.0 | | Develop DI capabilities | 5.6 | 5.6 | 0.0 | | Improve AI capabilities | 5.6 | 5.6 | 0.0 | | Provide omni-channel marketing cloud solutions | 25.4 | 25.4 | 0.0 | | Strengthen sales cloud solutions | 28.5 | 28.5 | 0.0 | | Consolidate customer service cloud solutions | 11.4 | 11.4 | 0.0 | | Enhance brand in finance, government & enterprise, and internet industries | 24.5 | 24.5 | 0.0 | | Promote brand in large consumer, retail, and healthcare industries and establish relevant industry research institutions | 4.9 | 4.9 | 0.0 | | Expand sales and after-sales service teams | 19.6 | 19.6 | 0.0 | | Strategic investments and acquisitions | 16.4 | 0.0 | 16.4 | | Working capital and general corporate purposes | 8.2 | 8.2 | 0.0 | | Total | 163.3 | 146.9 | 16.4 | - The Board will continue to evaluate the plan for utilizing the unutilized net proceeds and may revise it based on market conditions and business development needs[53](index=53&type=chunk) [Share Award Scheme](index=21&type=section&id=Share%20Award%20Scheme) The company adopted the 2022 Restricted Share Award Scheme on December 1, 2022, to incentivize and retain core employees, with the trustee holding 21,894,000 awarded shares and 48,453,050 shares available for grant as of June 30, 2025, and the scheme having a validity period of approximately seven years and three months, with vesting, lapse, and cancellation changes for awarded shares of Mr. Li Hairong and Group employees during the reporting period - The 2022 Restricted Share Award Scheme aims to provide selected participants with opportunities to acquire ownership interests in the company, encouraging and retaining them to serve the Group[54](index=54&type=chunk) - As of June 30, 2025, the total number of awarded shares held by the trustee under the scheme was **21,894,000 shares**[54](index=54&type=chunk) - As of June 30, 2025, the number of awarded shares available for grant under the 2022 Restricted Share Award Scheme was **48,453,050 shares**[54](index=54&type=chunk) Details of Changes in 2022 Restricted Share Award Scheme (As of June 30, 2025) | Category/Name of Grantee | Grant Date | Closing Price Immediately Before Grant Date (HKD) | Awarded Shares Not Yet Vested as of January 1, 2025 | Vested | Lapsed | Cancelled | Awarded Shares Not Yet Vested as of June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Mr. Li Hairong | September 27, 2024 | 0.66 | 390,000 | — | — | — | 390,000 | | Group Employees | January 6, 2023 | 3.00 | 3,108,000 | 1,257,000 | 241,000 | — | 1,610,000 | | Group Employees | September 27, 2024 | 0.66 | 3,028,000 | — | 113,000 | — | 2,915,000 | | Total | - | - | 6,526,000 | 1,257,000 | 354,000 | — | 4,915,000 | [Employee Remuneration and Employment Relationship](index=23&type=section&id=Employee%20Remuneration%20and%20Employment%20Relationship) As of June 30, 2025, the Group had 609 employees, with total employee costs of RMB86.1 million, a decrease from the same period last year, and the company offers competitive remuneration, bonuses, and share-based compensation, along with comprehensive training programs to maintain staff quality - As of June 30, 2025, the Group had **609 employees**[59](index=59&type=chunk) Total Employee Costs (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Total Employee Costs | 86.1 | 98.3 | - The company provides employees with competitive remuneration, bonuses, and share-based compensation, along with comprehensive training programs[59](index=59&type=chunk) [Changes in Directors' Biographical Details as Required by Rule 13.51B(1) of the Listing Rules](index=23&type=section&id=Changes%20in%20Directors'%20Biographical%20Details%20as%20Required%20by%20Rule%2013.51B(1)%20of%20the%20Listing%20Rules) From the publication date of the 2024 annual report until the date of this report, there were no changes in directors' biographical details requiring disclosure under Rule 13.51B(1) of the Listing Rules - From the publication date of the 2024 annual report until the date of this report, there were no changes in directors' biographical details requiring disclosure under Rule 13.51B(1) of the Listing Rules[60](index=60&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors](index=24&type=section&id=Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The company has adopted the Model Code as the code of conduct for directors' securities transactions, and all directors confirmed strict compliance with the code during the reporting period after inquiry - The company has adopted the Model Code as the code of conduct for directors' securities transactions, and all directors confirmed strict compliance during the reporting period[62](index=62&type=chunk) [Compliance with the Corporate Governance Code](index=24&type=section&id=Compliance%20with%20the%20Corporate%20Governance%20Code) The company complied with all applicable Corporate Governance Code provisions during the reporting period, except for a deviation from Code Provision C.2.1 (roles of Chairman and Chief Executive should be separate), as the Board believes Mr. Chen Yonghui's dual role benefits business prospects and operational efficiency, with sufficient safeguards to ensure power balance within the Board - The company complied with all applicable Corporate Governance Code provisions, except for a deviation from Code Provision C.2.1 (roles of Chairman and Chief Executive should be separate)[63](index=63&type=chunk) - The Board believes that Mr. Chen Yonghui's dual role as Chairman and Chief Executive Officer benefits business prospects and operational efficiency, with three independent non-executive directors providing independent insights to ensure power balance[63](index=63&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=24&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) The company repurchased 376,000 shares for a total consideration of HKD357,013.14 during the reporting period under the repurchase mandate, holding them as treasury shares, with a total of 422,500 shares repurchased for HKD408,033.53 up to the date of this report, and neither the company nor its subsidiaries purchased, sold, or redeemed any of its listed securities during the reporting period - The Directors have been granted a general mandate to repurchase shares not exceeding **10%** of the total issued shares[64](index=64&type=chunk) Share Repurchase Details (During the Reporting Period up to the Date of this Report) | Repurchase Month | Number of Shares Repurchased | Total Consideration Paid (HKD) | | :--- | :--- | :--- | | January 2025 | 99,000 | 86,072.23 | | February 2025 | 30,500 | 32,042.69 | | March 2025 | — | — | | April 2025 | 87,000 | 81,907.86 | | May 2025 | 69,500 | 65,438.47 | | June 2025 | 90,000 | 91,551.89 | | July 2025 | 46,500 | 51,020.39 | | August 2025 (up to the Latest Practicable Date) | — | — | | Total | 422,500 | 408,033.53 | - During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[66](index=66&type=chunk) [Interim Dividend](index=25&type=section&id=Interim%20Dividend) The Board does not recommend the payment of an interim dividend for the reporting period - The Board does not recommend the payment of an interim dividend for the reporting period (for the six months ended June 30, 2024: nil)[67](index=67&type=chunk) [Audit Committee](index=25&type=section&id=Audit%20Committee) The Audit Committee has reviewed the Group's unaudited condensed consolidated interim results for the reporting period and is satisfied that they have been prepared in accordance with applicable accounting standards and the Listing Rules, with adequate disclosures and no objections to the accounting treatment - The Audit Committee has reviewed the Group's unaudited condensed consolidated interim results and is satisfied that they have been prepared in accordance with applicable accounting standards and the Listing Rules, with adequate disclosures and no objections to the accounting treatment[68](index=68&type=chunk) [Contractual Arrangements](index=26&type=section&id=Contractual%20Arrangements) The Board has reviewed the Group's overall performance under the contractual arrangements and believes that the Group has complied in all material respects with the contractual arrangements disclosed in the prospectus and the Foreign Investment Law of the People's Republic of China, with no updates to contractual arrangements or qualification requirements, nor any new contractual arrangements entered into, renewed, or re-entered into during the reporting period - The Board has reviewed the Group's overall performance under the contractual arrangements and believes that it has complied with the contractual arrangements disclosed in the prospectus and the Foreign Investment Law of the People's Republic of China in all material respects[69](index=69&type=chunk) - During the reporting period, there were no updates to contractual arrangements or qualification requirements, nor any new contractual arrangements entered into, renewed, or re-entered into[69](index=69&type=chunk) [Events After the Reporting Period](index=26&type=section&id=Events%20After%20the%20Reporting%20Period) No significant events affecting the Group occurred from the end of the reporting period up to the date of this report - No significant events affecting the Group occurred from the end of the reporting period up to the date of this report[70](index=70&type=chunk) [Condensed Consolidated Interim Statement of Comprehensive Income](index=26&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Comprehensive%20Income) [Details of Condensed Consolidated Interim Statement of Comprehensive Income](index=26&type=section&id=Details%20of%20Condensed%20Consolidated%20Interim%20Statement%20of%20Comprehensive%20Income) This table presents the condensed consolidated interim statement of comprehensive income for the six months ended June 30, 2025, and the corresponding period in 2024, detailing revenue, cost of sales, gross profit, various operating expenses, net impairment loss on financial assets, other income, net finance costs, income tax expense, and loss and total comprehensive loss for the period Condensed Consolidated Interim Statement of Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Revenue | 410,907 | 647,469 | | Cost of Sales | (335,957) | (546,220) | | Gross Profit | 74,950 | 101,249 | | Selling and Distribution Expenses | (48,789) | (49,854) | | Administrative Expenses | (22,853) | (23,353) | | Research and Development Expenses | (28,598) | (32,790) | | Net Impairment Loss on Financial Assets | (2,744) | (2,726) | | Other Income | 1,636 | 2,867 | | Other (Losses)/Gains — Net | (570) | 501 | | Operating Loss | (26,968) | (4,106) | | Finance Income | 101 | 578 | | Finance Costs | (2,217) | (2,384) | | Finance Costs — Net | (2,116) | (1,806) | | Loss Before Income Tax | (29,084) | (5,912) | | Income Tax Expense | (154) | (228) | | Loss and Total Comprehensive Loss for the Period | (29,238) | (6,140) | | Loss Attributable to Owners of the Company | (25,874) | (6,444) | | Non-controlling Interests | (3,364) | 304 | | Basic and Diluted Loss Per Share | (0.048) | (0.012) | [Condensed Consolidated Interim Statement of Financial Position](index=27&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Financial%20Position) [Details of Condensed Consolidated Interim Statement of Financial Position](index=27&type=section&id=Details%20of%20Condensed%20Consolidated%20Interim%20Statement%20of%20Financial%20Position) This table presents the condensed consolidated interim statement of financial position as of June 30, 2025, and December 31, 2024, detailing non-current assets, current assets, total assets, equity attributable to owners of the company, non-controlling interests, total equity, non-current liabilities, current liabilities, and total liabilities Condensed Consolidated Interim Statement of Financial Position | Indicator | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | **Assets** | | | | Non-current Assets | 32,569 | 39,765 | | Current Assets | 592,173 | 594,043 | | **Total Assets** | **624,742** | **633,808** | | **Equity** | | | | Equity Attributable to Owners of the Company | 306,665 | 331,621 | | Non-controlling Interests | (7,196) | (3,552) | | **Total Equity** | **299,469** | **328,069** | | **Liabilities** | | | | Non-current Liabilities | 2,137 | 8,026 | | Current Liabilities | 323,136 | 297,713 | | **Total Liabilities** | **325,273** | **305,739** | | **Total Equity and Liabilities** | **624,742** | **633,808** | [Condensed Consolidated Interim Statement of Changes in Equity](index=29&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Changes%20in%20Equity) [Details of Condensed Consolidated Interim Statement of Changes in Equity](index=29&type=section&id=Details%20of%20Condensed%20Consolidated%20Interim%20Statement%20of%20Changes%20in%20Equity) This table presents the condensed consolidated interim statement of changes in equity for the six months ended June 30, 2025, and the corresponding period in 2024, including opening balances, loss for the period, share-based payments, share exercises, share repurchases, non-controlling interest contributions, and dividends, across share capital, share premium, other reserves, accumulated losses, non-controlling interests, and total equity Condensed Consolidated Interim Statement of Changes in Equity (For the six months ended June 30, 2025) | Indicator | Share Capital (RMB'000) | Share Premium (RMB'000) | Other Reserves (RMB'000) | Accumulated Losses (RMB'000) | Total (RMB'000) | Non-controlling Interests (RMB'000) | Total Equity (RMB'000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Balance as of January 1, 2025 | 360 | 440,616 | (40,411) | (68,944) | 331,621 | (3,552) | 328,069 | | Loss for the period | — | — | — | (25,874) | (25,874) | (3,364) | (29,238) | | Share-based payments | — | — | 516 | — | 516 | — | 516 | | Exercise of shares related to employee share scheme | — | 1,121 | (390) | — | 731 | — | 731 | | Share repurchase | — | — | (329) | — | (329) | — | (329) | | Transactions with non-controlling interests - capital contribution | — | — | — | — | — | 20 | 20 | | Transactions with non-controlling interests - dividends | — | — | — | — | — | (300) | (300) | | Balance as of June 30, 2025 | 360 | 441,737 | (40,614) | (94,818) | 306,665 | (7,196) | 299,469 | Condensed Consolidated Interim Statement of Changes in Equity (For the six months ended June 30, 2024) | Indicator | Share Capital (RMB'000) | Share Premium (RMB'000) | Other Reserves (RMB'000) | Accumulated Losses (RMB'000) | Total (RMB'000) | Non-controlling Interests (RMB'000) | Total Equity (RMB'000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Balance as of January 1, 2024 | 360 | 439,569 | (31,474) | (72,490) | 335,965 | 3,055 | 339,020 | | Loss for the period | — | — | — | (6,444) | (6,444) | 304 | (6,140) | | Share-based payments | — | — | 1,176 | — | 1,176 | — | 1,176 | | Purchase of shares related to employee share scheme | — | — | (8,308) | — | (8,308) | — | (8,308) | | Exercise of shares related to employee share scheme | — | 1,047 | (242) | — | 805 | — | 805 | | Balance as of June 30, 2024 | 360 | 440,616 | (38,848) | (78,934) | 323,194 | 3,359 | 326,553 | [Condensed Consolidated Interim Statement of Cash Flows](index=31&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Cash%20Flows) [Details of Condensed Consolidated Interim Statement of Cash Flows](index=31&type=section&id=Details%20of%20Condensed%20Consolidated%20Interim%20Statement%20of%20Cash%20Flows) This table presents the condensed consolidated interim statement of cash flows for the six months ended June 30, 2025, and the corresponding period in 2024, detailing net cash flows from operating, investing, and financing activities, as well as the net increase/(decrease) in cash and cash equivalents and their period-end balances Condensed Consolidated Interim Statement of Cash Flows (For the six months ended June 30) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Net Cash From/(Used In) Operating Activities | 30,779 | (74,110) | | Net Cash Used In Investing Activities | (162) | (9,487) | | Net Cash Used In Financing Activities | (7,402) | (14,643) | | Net Increase/(Decrease) in Cash and Cash Equivalents | 23,215 | (98,240) | | Cash and Cash Equivalents at Beginning of Period | 71,413 | 192,278 | | Cash and Cash Equivalents at End of Period | 94,561 | 94,074 | [Notes to the Condensed Consolidated Interim Financial Information](index=33&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Information) [1 General Information](index=33&type=section&id=1%20General%20Information) This section provides basic company information, including its registration location, principal business activities, ultimate controlling shareholders, and ultimate holding company, noting its primary engagement in providing smart customer relationship management (CRM) services in the People's Republic of China - Xuanwu Cloud Technology Holdings Limited was incorporated in the Cayman Islands on **April 26, 2021**[83](index=83&type=chunk) - The Group is principally engaged in providing smart customer relationship management (CRM) services in the People's Republic of China[83](index=83&type=chunk) - The ultimate controlling shareholders are Mr. Chen Yonghui, Mr. Huang Fangjie, and Mr. Li Hairong, who have entered into an agreement to act in concert with each other[83](index=83&type=chunk) [2 Basis of Preparation](index=33&type=section&id=2%20Basis%20of%20Preparation) This condensed consolidated interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting', is unaudited, and should be read in conjunction with the financial statements for the year ended December 31, 2024 - This condensed consolidated interim financial information has been prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting'[86](index=86&type=chunk) - This condensed consolidated interim financial information is unaudited and should be read in conjunction with the financial statements for the year ended December 31, 2024[85](index=85&type=chunk)[86](index=86&type=chunk) [3 Accounting Policies](index=34&type=section&id=3%20Accounting%20Policies) This section describes the accounting policies adopted by the Group, which are consistent with those applied in the preparation of the financial statements for the year ended December 31, 2024, except for the adoption of new and revised standards, none of which have had a significant impact on the condensed consolidated interim financial information, nor are new standards not yet effective expected to have a material impact - The accounting policies applied are consistent with those applied in the preparation of the Group's financial statements for the year ended December 31, 2024, except for the adoption of new and revised standards[87](index=87&type=chunk) - The adoption of new and revised standards (such as amendments to HKAS 21 and HKFRS 1) had no significant impact on the Group's condensed consolidated interim financial information[87](index=87&type=chunk) - New standards and amendments not yet effective (such as amendments to HKFRS 18 and HKFRS 19) are not expected to have a significant impact on the Group's condensed consolidated interim financial information[88](index=88&type=chunk) [4 Critical Accounting Estimates and Judgements](index=35&type=section&id=4%20Critical%20Accounting%20Estimates%20and%20Judgements) This section highlights that the preparation of interim financial information requires management to make judgments, estimates, and assumptions affecting the application of accounting policies and the amounts reported in the financial statements, and actual results may differ from these estimates, with the primary sources of estimation uncertainty being the same as those applied in the financial statements for the year ended December 31, 2024 - In preparing the interim financial information, management is required to make judgments, estimates, and assumptions that affect the application of accounting policies and the amounts reported in the financial statements[89](index=89&type=chunk) - The key judgments and major sources of estimation uncertainty are the same as those applied in the Group's financial statements for the year ended December 31, 2024[89](index=89&type=chunk) [5 Financial Risk Management](index=35&type=section&id=5%20Financial%20Risk%20Management) The Group is exposed to market risks (including foreign exchange risk, price risk, cash flow and fair value interest rate risk), credit risk, and liquidity risk, and this interim financial information does not include all financial risk management information required in annual financial statements, with no changes in risk management department or policies since the year-end - The Group is exposed to market risks (including foreign exchange risk, price risk, cash flow and fair value interest rate risk), credit risk, and liquidity risk[90](index=90&type=chunk) - There have been no changes in the risk management department or risk management policies since the year-end[91](index=91&type=chunk) [6 Segment Information](index=36&type=section&id=6%20Segment%20Information) The Group's operating segments are divided into CRM PaaS services and CRM SaaS services, with the chief operating decision maker assessing performance based on gross profit for each segment, reporting PaaS revenue of RMB165,951 thousand and SaaS revenue of RMB244,956 thousand for the six months ended June 30, 2025, and SaaS gross profit of RMB64,999 thousand and PaaS gross profit of RMB9,951 thousand - The Group's operating segments are CRM PaaS services and CRM SaaS services[93](index=93&type=chunk)[94](index=94&type=chunk) - The chief operating decision maker assesses the performance of the operating segments based on their gross profit[94](index=94&type=chunk) Segment Performance (For the six months ended June 30, 2025) | Segment | Revenue (RMB'000) | Cost of Sales (RMB'000) | Gross Profit (RMB'000) | | :--- | :--- | :--- | :--- | | PaaS | 165,951 | (156,000) | 9,951 | | SaaS | 244,956 | (179,957) | 64,999 | | Total | 410,907 | (335,957) | 74,950 | Segment Performance (For the six months ended June 30, 2024) | Segment | Revenue (RMB'000) | Cost of Sales (RMB'000) | Gross Profit (RMB'000) | | :--- | :--- | :--- | :--- | | PaaS | 282,411 | (265,456) | 16,955 | | SaaS | 365,058 | (280,764) | 84,294 | | Total | 647,469 | (546,220) | 101,249 | [7 Revenue](index=39&type=section&id=7%20Revenue) The Group's revenue primarily comprises proceeds from providing PaaS and SaaS, with PaaS revenue of RMB165,951 thousand and SaaS revenue of RMB244,956 thousand for the six months ended June 30, 2025, and most revenue recognized at a point in time, with contract liabilities of RMB62,158 thousand - Revenue primarily comprises proceeds from providing PaaS and SaaS[98](index=98&type=chunk) Revenue by Category (For the six months ended June 30) | Category | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | PaaS | 165,951 | 282,411 | | SaaS | 244,956 | 365,058 | | Total | 410,907 | 647,469 | Revenue by Recognition Timing (For the six months ended June 30) | Recognition Timing | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | At a point in time | 390,237 | 629,875 | | Over time | 20,670 | 17,594 | | Total | 410,907 | 647,469 | Contract Liabilities | Indicator | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Contract Liabilities | 62,158 | 37,535 | [8 Expenses by Nature](index=40&type=section&id=8%20Expenses%20by%20Nature) This section details expenses included in cost of sales, selling and distribution expenses, research and development expenses, and administrative expenses, with total expenses of RMB436,197 thousand for the six months ended June 30, 2025, and telecom resource costs being the largest component at RMB321,281 thousand Expenses by Nature (For the six months ended June 30) | Expense Category | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Telecom resource costs | 321,281 | 516,683 | | Employee benefit expenses | 86,137 | 98,332 | | Travel and entertainment expenses | 6,536 | 8,284 | | Outsourced customer service expenses | 5,746 | 5,590 | | Depreciation and amortization expenses | 4,724 | 4,984 | | Infrastructure and equipment expenses | 3,916 | 3,542 | | Professional service fees | 3,294 | 2,711 | | Marketing and promotion expenses | 929 | 1,383 | | Taxes and other levies | 837 | 1,219 | | Conference and office expenses | 653 | 914 | | Outsourced implementation costs | 330 | 5,751 | | Lease payments for short-term leases | 240 | 246 | | Auditor's remuneration | 75 | 9 | | Others | 1,499 | 2,569 | | Total | 436,197 | 652,217 | [9 Employee Benefit Expenses](index=41&type=section&id=9%20Employee%20Benefit%20Expenses) For the six months ended June 30, 2025, total employee benefit expenses were RMB86,137 thousand, a decrease from the same period last year, comprising RMB75,730 thousand for salaries, wages, and bonuses, RMB9,891 thousand for social insurance and other employee benefits, and RMB516 thousand for share-based payments Employee Benefit Expenses (For the six months ended June 30) | Expense Category | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Salaries, wages and bonuses | 75,730 | 85,592 | | Social insurance expenses, housing benefits and other employee benefits | 9,891 | 11,564 | | Share-based payments | 516 | 1,176 | | Total | 86,137 | 98,332 | - Employees of the Group's PRC subsidiaries participate in defined contribution retirement schemes, contributing a certain percentage of their salaries[101](index=101&type=chunk) [10 Other Income](index=41&type=section&id=10%20Other%20Income) For the six months ended June 30, 2025, other income was RMB1,636 thousand, a decrease from RMB2,867 thousand in the same period last year, primarily due to reduced government grants and VAT refunds Other Income (For the six months ended June 30) | Income Category | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | VAT refunds | 1,294 | 1,505 | | Government grants | 123 | 1,123 | | Others | 219 | 239 | | Total | 1,636 | 2,867 | - VAT refund policy allows software enterprises to enjoy VAT refunds for the portion of actual tax burden exceeding **3%** of sales when selling self-developed software[104](index=104&type=chunk) - Government grants primarily include growth incentives for first-time transition from below-scale to above-scale enterprises in Guangzhou Development Zone (Huangpu District) and subsidies for promoting high-quality development of commercial services in Guangzhou City[104](index=104&type=chunk) [11 Other (Losses)/Gains — Net](index=42&type=section&id=11%20Other%20(Losses)%2FGains%20%E2%80%94%20Net) For the six months ended June 30, 2025, other net losses were RMB570 thousand, compared to net gains of RMB501 thousand in the same period of 2024, primarily comprising net loss on disposal of property, plant and equipment, fair value gains on financial assets, and foreign exchange losses Other (Losses)/Gains — Net (For the six months ended June 30) | Category | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Net loss on disposal of property, plant and equipment | (2) | (1) | | Net fair value gains on financial assets at fair value through profit or loss | 276 | 513 | | Net foreign exchange (losses)/gains | (67) | 36 | | Others | (777) | (47) | | Total | (570) | 501 | [12 Finance Costs — Net](index=43&type=section&id=12%20Finance%20Costs%20%E2%80%94%20Net) For the six months ended June 30, 2025, net finance costs were RMB2,116 thousand, an increase from RMB1,806 thousand in the same period of 2024, primarily consisting of interest expense on borrowings Finance Costs — Net (For the six months ended June 30) | Category | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Finance income - interest income from bank deposits | 101 | 578 | | Finance costs - interest expense on lease liabilities | (91) | (250) | | Finance costs - interest expense on borrowings | (2,126) | (2,134) | | Finance Costs — Net | (2,116) | (1,806) | [13 Income T

由於GEM上市之公司普遍為中小型公司，在GEM買賣之證券可能會較於聯交所主板買賣之證券承受較大 市場波動風險，同時無法保證在GEM買賣之證券會有高流通量之市場。 香港交易及結算所有限公司及聯交所對本報告之內容概不負責，對其準確性或完整性亦不發表任何聲明， 並明確表示概不就因本報告全部或任何部份內容而產生或因依賴該等內容而引致之任何損失承擔任何責 任。 香港聯合交易所有限公司（「聯交所」）GEM的特點 AV策劃推廣（控股）有限公司（「本公司」）各董事（「董事」）對本報告共同及個別承擔全部責任。本報告載有 遵照聯交所GEM證券上市規則（「GEM上市規則」）之規定，提供有關本公司及其附屬公司（統稱「本集團」或 「我們」）之資料。董事在作出一切合理查詢後確認，就彼等所深知及確信，本報告所載資料在所有重大方 面均屬正確及完整且並無誤導或欺詐成分，且並無遺漏其他事項，致使本報告所載任何聲明或本報告產生 誤導。 GEM之定位乃為中小型公司提供一個上市的市場，此等公司相比起其他在聯交所上市之公司帶有較高投 資風險。有意投資人士應了解投資於該等公司之潛在風險，並應經過審慎周詳之考慮後方作出投資決定。 目錄 | 財務摘要 | 2 ...

[Corporate Mission](index=2&type=section&id=Corporate%20Mission) [Corporate Mission Statement](index=2&type=section&id=Corporate%20Mission%20Statement) Hengan International's mission is 'Pursuing Health, Growing Together,' aspiring to be a world-class household consumer products enterprise - Hengan International's mission is 'Pursuing Health, Growing Together,' guided by the corporate spirit of **'Integrity, Endeavor, Innovation, and Dedication'**[5](index=5&type=chunk)[6](index=6&type=chunk) - The company aims to build an efficient management team and high-quality workforce, ultimately becoming a **world-class household consumer products enterprise**[5](index=5&type=chunk)[6](index=6&type=chunk) [Corporate Information](index=3&type=section&id=Corporate%20Information) [Board of Directors and Key Personnel](index=3&type=section&id=Board%20of%20Directors%20and%20Key%20Personnel) Hengan International's board and key personnel are detailed, noting the passing of Vice Chairman Mr. Xu Lianjie on April 17, 2025 - Vice Chairman Mr. Xu Lianjie passed away on **April 17, 2025**[8](index=8&type=chunk)[9](index=9&type=chunk) - Executive Directors include Shi Wenbo (Chairman), Xu Qingliu (CEO), Xu Dazuo, Shi Huangjian, Xu Qingchi, Li Weiliang, and Xu Wenmo[8](index=8&type=chunk)[9](index=9&type=chunk) - Independent Non-Executive Directors include Wong Ying Kay, Ho Kwai Ching, Paul Hill, and Chen Chuang[8](index=8&type=chunk)[9](index=9&type=chunk) [Advisors and Offices](index=3&type=section&id=Advisors%20and%20Offices) The company's auditors are Deloitte Touche Tohmatsu, with legal advisors including Reed Smith Richards Butler and Global Law Office, and offices in Cayman Islands, Jinjiang, and Hong Kong - The auditor is **Deloitte Touche Tohmatsu**[9](index=9&type=chunk) - Legal advisors include **Reed Smith Richards Butler** in Hong Kong, **Global Law Office** in China, and **Maples and Calder (Hong Kong) LLP** in the Cayman Islands[8](index=8&type=chunk)[9](index=9&type=chunk) - The company's shares are listed on The Stock Exchange of Hong Kong Limited under stock code **1044**[11](index=11&type=chunk)[13](index=13&type=chunk) [Financial Highlights](index=5&type=section&id=Financial%20Highlights) [Key Financial Performance](index=5&type=section&id=Key%20Financial%20Performance) Hengan International's H1 2025 saw slight declines in revenue, operating profit, and profit attributable to equity holders, accompanied by a decrease in gross profit margin Key Financial Data for the Six Months Ended June 30, 2025 | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 11,808,232 | 11,835,893 | (0.2%) | | Gross Profit Margin | 32.3% | 33.3% | -1.0pp | | Operating Profit | 1,757,339 | 1,895,891 | (7.3%) | | Profit Attributable to Equity Holders of the Company | 1,372,894 | 1,408,992 | (2.6%) | | Basic Earnings Per Share | RMB1.206 | RMB1.234 | - | | Annualized Return on Equity | 12.9% | 13.5% | -0.6pp | - Finished goods turnover remained at **38 days**, while trade and bills receivables turnover shortened from **39 days to 37 days**[15](index=15&type=chunk) [Revenue Contribution by Product Category](index=5&type=section&id=Revenue%20Contribution%20by%20Product%20Category) In H1 2025, tissue products' revenue contribution increased from 58.7% to 60.8%, while hygiene products' share decreased from 32.6% to 28.0% Revenue Contribution Comparison for H1 2024 and H1 2025 | Product Category | H1 2025 Contribution | H1 2024 Contribution | | :--- | :--- | :--- | | Tissue Products | 60.8% | 58.7% | | Hygiene Products | 28.0% | 32.6% | | Other | 11.2% | 8.7% | - Tissue product revenue contribution significantly increased, becoming the **Group's primary revenue source**[16](index=16&type=chunk)[17](index=17&type=chunk) [Report on Review of Condensed Consolidated Financial Statements](index=6&type=section&id=Report%20on%20Review%20of%20Condensed%20Consolidated%20Financial%20Statements) [Auditor's Review and Conclusion](index=6&type=section&id=Auditor's%20Review%20and%20Conclusion) Deloitte Touche Tohmatsu reviewed Hengan International's H1 2025 condensed consolidated financial statements, concluding no material issues regarding HKAS 34 compliance, with 2024 data reviewed by another auditor - Deloitte Touche Tohmatsu reviewed, rather than audited, the condensed consolidated financial statements[18](index=18&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk) - The review concluded that no matters came to the auditor's attention that caused them to believe the financial statements were not prepared in all material respects in accordance with **HKAS 34**[22](index=22&type=chunk)[24](index=24&type=chunk) - Comparative financial data for the corresponding period in 2024 was reviewed by another auditor, who issued an unmodified review conclusion on **August 19, 2024**[23](index=23&type=chunk)[25](index=25&type=chunk) [Interim Condensed Consolidated Statement of Profit or Loss](index=8&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) [Profit or Loss Performance](index=8&type=section&id=Profit%20or%20Loss%20Performance) For H1 2025, the Group's revenue slightly decreased, sales costs rose, and gross profit declined, leading to a 7.3% drop in operating profit and a 2.6% decrease in profit attributable to equity holders despite reduced finance costs Key Profit or Loss Statement Data for the Six Months Ended June 30, 2025 | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 11,808,232 | 11,835,893 | (0.2%) | | Cost of Sales | (7,996,703) | (7,899,651) | 1.2% | | Gross Profit | 3,811,529 | 3,936,242 | (3.2%) | | Selling and Distribution Costs | (1,879,365) | (1,796,725) | 4.6% | | Administrative Expenses | (733,720) | (675,571) | 8.6% | | Operating Profit | 1,757,339 | 1,895,891 | (7.3%) | | Finance Costs — Net | (56,056) | (160,305) | (65.0%) | | Profit Before Income Tax | 1,701,480 | 1,735,847 | (2.0%) | | Profit for the Period | 1,368,762 | 1,403,267 | (2.5%) | | Profit Attributable to Equity Holders of the Company | 1,372,894 | 1,408,992 | (2.6%) | | Basic Earnings Per Share | RMB1.206 | RMB1.234 | (2.3%) | - Net impairment losses on financial assets decreased from **RMB 70.663 million** to **RMB 57.463 million**, a **18.7% decrease**[27](index=27&type=chunk) - Other income and net gains significantly increased by **22.6%** to **RMB 616.358 million**[27](index=27&type=chunk) [Interim Condensed Consolidated Statement of Comprehensive Income](index=9&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) [Comprehensive Income Performance](index=9&type=section&id=Comprehensive%20Income%20Performance) For H1 2025, profit for the period was RMB 1.369 billion, a 2.5% decrease year-on-year, with net other comprehensive expense of RMB 53.455 million, primarily due to exchange differences, resulting in a total comprehensive income of RMB 1.315 billion Key Comprehensive Income Statement Data for the Six Months Ended June 30, 2025 | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Profit for the Period | 1,368,762 | 1,403,267 | (2.5%) | | Other Comprehensive (Expense) Income | (53,455) | 18,446 | - | | Total Comprehensive Income for the Period | 1,315,307 | 1,421,713 | (7.4%) | | Attributable to Equity Holders of the Company | 1,311,55

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之內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不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。 除了年報中提供的資料之外，本公司董事會（「董事會」） 希望謹此向本公司 股東及潛在投資者提供以下與本公司於二零二三年六月三十日採納購股權計劃 有關的額外資料：即「最短期限」（見補充公告及購股權計劃的界定）指的是 就購股權而言，該期限從要約日期開始，到緊接其一週年之前的一天結束。 除上文所披露者外，年報以及補充公告所載的所有其他資料均保持不變，並就 所有目的而言繼續有效。本公告為年報以及補充公告的補充，應與前述兩者一 併閱讀。 承董事會命 中國宏光控股有限公司 主席兼執行董事 林偉珊 香港，二零二五年九月十二日 於本公告日期，執行董事為魏佳坤先生、林偉珊女士及李婉娜女士；以及獨立非執行董事為毛淑 娥女士、賈小剛先生及吳勇先生。 本公告資料乃遵照香港聯合交易所有限公司GEM證券上巿規則的規定而刊載，旨在提供有關本公 司的資料；本公司各董事願就本公告共同及個別承擔全部責任。各董事在作出一切合理查詢後， 確認就 ...

（股份代號：1199） （於百慕達註冊成立之有限公司） 2025 中期報告 聚力創新 譜華章 攜手同行 三十載 (Z:\09. IR\166338 COSCO IR25\cover\Cosco IR25 cover) 關於中遠海運港口有限公司 中遠海運港口圍繞「The Ports for ALL」品牌理念，以「鏈接世界、創享價值」為企業使命，從客戶需求出 發，不斷提升現有全球網絡的服務效能，持續推進關鍵節點港口及物流資源佈局，以港為媒，接通全 球航線服務世界貿易，努力為各方創造共贏共享平台，致力成為「以客戶為中心的全球領先港口物流 服務商」。 目錄 | 財務摘要 | 3 | | --- | --- | | 業務回顧 | 4 | | 財務回顧 | 8 | | 展望 | 12 | | 第一次中期股息 | 13 | | 權益披露 | 14 | | 股票期權計劃 | 14 | | 董事於股份、相關股份及債券的 | 14 | | 權益 | | | 本公司股本中的主要權益 | 16 | | 企業管治及其他資料 | 17 | | 遵守企業管治守則 | 17 | | 董事會下設委員會 | 17 | | 董事進行證券交易之標準 ...

中期報告 INTERIM REPORT 2025 CONTENTS 目錄 | 公司資料 | 2 | Corporate Information | | --- | --- | --- | | 財務摘要 | 4 | Financial Highlights | | 管理層討論與分析 | 5 | Management Discussion and Analysis | | 中期簡明綜合收益表 | 17 | Interim Condensed Consolidated Income Statement | | 中期簡明綜合全面收益表 | 18 | Interim Condensed Consolidated Statement of Comprehensive Income | | 中期簡明綜合資產負債表 | 19 | Interim Condensed Consolidated Balance Sheet | | 中期簡明綜合權益變動表 | 21 | Interim Condensed Consolidated Statement of Changes in Equity | | 中期簡明綜合現金流量表 | 22 ...