| 公司資料 | 2 | | --- | --- | | 摘要 | 4 | | 管理層討論及分析 | 6 | | 企業管治 | 18 | | 其他資料 | 20 | | 中期財務報告審閱報告 | 56 | | 綜合損益表 | 57 | | 綜合全面收益表 | 58 | | 綜合財務狀況表 | 59 | | 綜合權益變動表 | 61 | | 簡明綜合現金流量表 | 63 | | 未經審計中期財務報告附註 | 65 | | 釋義 | 96 | 01 目錄 公司資料 董事會 執行董事 蔡宗建先生 （主席兼首席執行官） 許元先生 張竑先生 沈潔蕾女士 陳豐先生 非執行董事 池元先生 獨立非執行董事 甘偉民先生 李鳳女士 陳合火先生 （於二零二五年五月二十八日獲委任） 梁漢基博士 （於二零二五年五月二十八日辭任） 董事會委員會 審核委員會 甘偉民先生 （主席） 李鳳女士 陳合火先生 （於二零二五年五月二十八日獲委任） 梁漢基博士 （於二零二五年五月二十八日辭任） 提名委員會 陳合火先生 （主席） （於二零二五年五月二十八日獲委任） 蔡宗建先生 甘偉民先生 李鳳女士 梁漢基博士 （於二零二五年五月二十八日辭任） 薪酬委員 ...

[Corporate Information](index=2&type=section&id=Corporate%20Information) This section outlines the company's governance structure, including directors, committees, and key contact information [Directors and Committees](index=3&type=section&id=Directors%20and%20Committees) This section lists the company's executive and independent non-executive directors, along with the composition of its audit, remuneration, nomination, and strategy and development committees - Executive Directors include Mr. Gui Pinghu (Chairman), Ms. Zhang Yuan (CEO), and Ms. Zhu Feifei[2](index=2&type=chunk)[3](index=3&type=chunk) - Independent Non-Executive Directors include Mr. Yu Bo, Mr. Ye Bangyin, and Mr. Cheng Jianming[2](index=2&type=chunk)[3](index=3&type=chunk) - Mr. Ye Bangyin chairs the Audit Committee, Mr. Cheng Jianming chairs the Remuneration Committee, Mr. Yu Bo chairs the Nomination Committee, and Mr. Gui Pinghu chairs the Strategy and Development Committee[3](index=3&type=chunk)[4](index=4&type=chunk) [Company Contacts and Advisers](index=3&type=section&id=Company%20Contacts%20and%20Advisers) This section provides details on the company's joint company secretaries, registered office, Hong Kong principal place of business, authorized representatives, legal advisers, H-share registrar, principal bankers, and auditor - Joint Company Secretaries are Ms. Zhi Hui and Mr. You Zilin[3](index=3&type=chunk)[4](index=4&type=chunk) - The company's registered office and headquarters are in Nanjing, Jiangsu Province, China, with its principal place of business in Hong Kong at 40/F, Jardine House, 1 Connaught Place[3](index=3&type=chunk)[4](index=4&type=chunk) - The auditor is Ernst & Young, and the stock code is **3332**[7](index=7&type=chunk)[8](index=8&type=chunk) [Financial Highlights](index=5&type=section&id=Financial%20Highlights) This section presents a concise overview of the company's key financial performance indicators for the first half of 2025 [2025 First Half Financial Highlights](index=5&type=section&id=2025%20First%20Half%20Financial%20Highlights) The company's financial performance declined in the first half of 2025, with year-on-year decreases in revenue, gross profit, and profit for the period, reduced basic earnings per share, and no interim dividend declared 2025 First Half Financial Highlights | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | | Revenue | 332.4 | 370.2 | -10.2% | | Gross Profit | 243.4 | 268.7 | -9.4% | | Profit for the Period | 15.3 | 33.4 | -54.2% | | Basic Earnings Per Share | 1.62 cents | 3.53 cents | -54.0% | - The Board resolved not to declare any interim dividend for the six months ended June 30, 2025 (H1 2024: nil)[10](index=10&type=chunk) [Product Information](index=6&type=section&id=Product%20Information) This section details the company's extensive 'Good Health' product line, encompassing a wide range of nutritional supplements and health foods [Good Health Series](index=6&type=section&id=Good%20Health%20Series) The company's primary product line, 'Good Health,' offers a diverse range of nutritional and health supplements, including oyster essence, propolis, high calcium, CoQ10, grapeseed, glucosamine, green-lipped mussel, milk thistle, fish oil, bilberry lutein, collagen, stomach powder, immune powder, cranberry evening primrose oil, nasal capsules, throat lozenges, lactoferrin milk powder, probiotics, calcium-iron-zinc nutritional packs, and various children's products - The 'Good Health' series features a rich product line, including adult health supplements such as oyster essence capsules, propolis capsules, high calcium liquid calcium and vitamin D, CoQ10 capsules, grapeseed 55,000 capsules, glucosamine capsules, green-lipped mussel 6000 capsules, milk thistle capsules, fish oil capsules, high-concentration fish oil capsules, bilberry lutein capsules, and collagen capsules[13](index=13&type=chunk)[14](index=14&type=chunk)[16](index=16&type=chunk)[17](index=17&type=chunk)[18](index=18&type=chunk) - It also includes specialized functional products like stomach powder, Vilex Immune Powder, cranberry evening primrose oil capsules, Vilex Nasal Capsules, Vilex Throat Lozenges, lactoferrin milk powder, Little Monkey Lactoferrin Powder, Vilmin Compound Powder, and lactase milk powder[22](index=22&type=chunk)[24](index=24&type=chunk)[26](index=26&type=chunk) - Children's series products include calcium-iron-zinc nutritional packs, probiotic solid beverages, children's vision chewable tablets, children's immunity chewable tablets, children's growth chewable tablets, children's magnesium chewable tablets, children's algal oil DHA capsules, children's vision lutein chewable tablets, and gummy candy series[25](index=25&type=chunk)[26](index=26&type=chunk)[29](index=29&type=chunk)[31](index=31&type=chunk) [Management Discussion and Analysis](index=10&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a comprehensive review and analysis of the group's business operations, financial performance, and future outlook [Business Review](index=11&type=section&id=Business%20Review) In the first half of 2025, the group's performance declined due to global economic slowdown, trade policy uncertainties, and intensified industry competition, with revenue decreasing by 10.2% and profit by 54.2%, while the group focused on cross-border e-commerce for its 'Good Health' brand, enhancing promotion on platforms like Douyin and launching 11 new products - In the first half of 2025, the group's revenue was approximately **RMB 332.4 million**, a year-on-year decrease of **10.2%**[32](index=32&type=chunk)[35](index=35&type=chunk) - Profit for the period was approximately **RMB 15.3 million**, a year-on-year decrease of **54.2%**[32](index=32&type=chunk)[35](index=35&type=chunk) - The group focused on the 'Good Health' brand's cross-border e-commerce business, implementing a combined strategy of influencer marketing, external promotion, and live streaming on Douyin, alongside brand building and sales promotion through distributors, pharmacies, duty-free shops, and e-commerce platforms[33](index=33&type=chunk)[36](index=36&type=chunk) - For the six months ended June 30, 2025, the group launched **11 new products**, comprising **9** from the 'Good Health' series and **2** from the 'Living Nature' series[34](index=34&type=chunk)[36](index=36&type=chunk) [Financial Review](index=12&type=section&id=Financial%20Review) This section provides a detailed review of the group's financial performance for the first half of 2025, including specific data and reasons for changes in revenue, gross profit, other income and gains, selling and distribution expenses, administrative expenses, income tax expense, and profit for the period [Results Overview](index=12&type=section&id=Results%20Overview) In the first half of 2025, the group experienced significant declines in both revenue and profit, with a corresponding reduction in earnings per share 2025 First Half Performance Overview | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | | Revenue | 332.4 | 370.2 | -10.2% | | Profit for the Period | 15.3 | 33.4 | -54.2% | | Earnings Per Share | 1.62 cents | 3.53 cents | -54.0% | [Revenue Analysis](index=12&type=section&id=Revenue%20Analysis) The decrease in revenue is primarily attributed to reduced income from infant and child products sold through mainland China distributor platforms - Revenue for the first half of 2025 was approximately **RMB 332.4 million**, a decrease of approximately **RMB 37.8 million** or **10.2%** compared to the first half of 2024[40](index=40&type=chunk)[44](index=44&type=chunk) - The decrease in revenue was primarily due to lower income generated from infant and child products sold through domestic distributor platforms for the six months ended June 30, 2025[40](index=40&type=chunk)[44](index=44&type=chunk) [Gross Profit Analysis](index=12&type=section&id=Gross%20Profit%20Analysis) Gross profit decreased by 9.4% year-on-year, but the gross profit margin remained stable at approximately 73.2% Gross Profit and Gross Profit Margin | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | | Gross Profit | 243.4 | 268.7 | -9.4% | | Gross Profit Margin | 73.2% | 72.6% | +0.6% | [Other Income and Gains](index=12&type=section&id=Other%20Income%20and%20Gains) Other income and gains, primarily comprising rental income, government grants, and bank interest income, saw a slight year-on-year increase, mainly driven by higher bank interest income Other Income and Gains | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | | Other Income and Gains | 3.8 | 3.5 | +8.6% | - The increase was primarily due to higher bank interest income[42](index=42&type=chunk)[46](index=46&type=chunk) [Operating Expenses](index=13&type=section&id=Operating%20Expenses) Selling and distribution expenses increased by 2.4% year-on-year, rising to 7.1% of sales revenue, mainly due to increased investment in cross-border e-commerce promotion and staff expansion, while administrative expenses decreased by 2.4% year-on-year, with its proportion to sales revenue remaining largely stable Operating Expenses | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 190.7 | 186.3 | +2.4% | | Selling and Distribution Expenses as % of Revenue | 57.4% | 50.3% | +7.1% | | Administrative Expenses | 36.5 | 37.4 | -2.4% | | Administrative Expenses as % of Revenue | 11.0% | 10.1% | +0.9% | - The increase in selling and distribution expenses was primarily due to the group's continued vigorous development of the 'Good Health' brand's cross-border e-commerce channel business in the Chinese market, increased investment in sales promotion resources, and an expanded headcount in the cross-border e-commerce department[47](index=47&type=chunk)[50](index=50&type=chunk) [Income Tax Expense](index=13&type=section&id=Income%20Tax%20Expense) Income tax expense significantly decreased year-on-year, primarily due to a decline in the pre-tax profit of the New Zealand subsidiary, Good Health Products Limited Income Tax Expense | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | | Income Tax Expense | 2.5 | 6.9 | -63.8% | - The decrease in income tax expense was primarily attributable to the lower pre-tax profit of Good Health Products Limited, one of the company's New Zealand subsidiaries, for the six months ended June 30, 2025, compared to the same period last year[49](index=49&type=chunk)[52](index=52&type=chunk) [Profit for the Period](index=14&type=section&id=Profit%20for%20the%20Period) The combined effect of decreased revenue and an increased proportion of selling and distribution expenses led to a 54.2% year-on-year decline in profit for the period in the first half of 2025, with the profit margin falling from 9.0% to 4.6% Profit for the Period and Profit Margin | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | | Profit for the Period | 15.3 | 33.4 | -54.2% | | Profit Margin | 4.6% | 9.0% | -4.4% | - The decline in profit was primarily due to the combined impact of reduced revenue and an increased proportion of selling and distribution expenses relative to sales revenue[54](index=54&type=chunk)[57](index=57&type=chunk) [Other Comprehensive Income](index=14&type=section&id=Other%20Comprehensive%20Income) In the first half of 2025, the group recorded exchange gains of approximately **RMB 13.7 million**, primarily due to a significant appreciation of the New Zealand Dollar against the Renminbi, contrasting with an exchange loss in the prior period Exchange Differences | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Exchange differences on translation of foreign operations | 13.7 (gain) | -2.5 (loss) | - The exchange gain was primarily due to a significant appreciation of the New Zealand Dollar against the Renminbi[55](index=55&type=chunk)[58](index=58&type=chunk) [Liquidity and Capital Resources](index=14&type=section&id=Liquidity%20and%20Capital%20Resources) This section analyzes the group's cash flows, inventories, trade receivables, trade payables, foreign exchange risk, borrowings and asset pledges, gearing ratio, and capital expenditure and commitments [Cash Flow](index=14&type=section&id=Cash%20Flow) As of June 30, 2025, the group's cash and cash equivalents increased by approximately **RMB 31.6 million** compared to the end of 2024, primarily driven by net cash inflows from operating activities, financing activities, and exchange rate effects Changes in Cash and Cash Equivalents | Item | Amount (RMB million) | | :--- | :--- | | Increase in cash and cash equivalents from beginning to end of period | 31.6 | | Net cash inflow from operating activities | 9.5 | | Net cash outflow from investing activities | -0.03 | | Net cash inflow from financing activities | 17.7 | | Cash inflow from exchange rate effects | 4.4 | [Working Capital](index=15&type=section&id=Working%20Capital) Inventories decreased by 5.5%, mainly due to increased raw material demand from e-commerce channel development and enhanced procurement management; trade receivables increased by 49.2%, primarily from growth in cross-border e-commerce platform sales; and trade payables increased by 39.8% to meet increased production capacity needs for core products driven by cross-border e-commerce sales growth Changes in Working Capital Metrics | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | | Inventories | 112.5 | 119.1 | -5.5% | | Trade Receivables | 62.5 | 41.9 | +49.2% | | Trade Payables | 17.9 | 12.8 | +39.8% | - The decrease in inventories was primarily due to the vigorous development of the 'Good Health' e-commerce channel, leading to increased raw material usage to meet second-half e-commerce sales demand, coupled with strengthened raw material procurement management[60](index=60&type=chunk)[63](index=63&type=chunk) - The increase in trade receivables was mainly due to growth in sales revenue from cross-border e-commerce channels, particularly the increase in receivables from e-commerce platforms[61](index=61&type=chunk)[64](index=64&type=chunk) - The growth in trade payables was primarily due to the continuous increase in cross-border e-commerce sales, leading to increased procurement of raw materials required for production to boost output of certain core products in response to market demand[62](index=62&type=chunk)[65](index=65&type=chunk) [Debt and Gearing](index=16&type=section&id=Debt%20and%20Gearing) As of June 30, 2025, the group incurred new borrowings of **RMB 20 million** at an annual interest rate of **2.6%**, pledging approximately **RMB 1.5 million** in property as collateral, with the gearing ratio increasing to **21.1%** Borrowings and Gearing Ratio | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Borrowings | 20.0 | 0 | | Annual Interest Rate on Borrowings | 2.6% | - | | Net Book Value of Pledged Property | 1.5 | 0 | | Gearing Ratio | 21.1% | 18.7% | - The group has not adopted any hedging or alternative policies to manage foreign exchange risk, considering its exposure manageable[67](index=67&type=chunk)[72](index=72&type=chunk) [Capital Expenditure and Commitments](index=16&type=section&id=Capital%20Expenditure%20and%20Commitments) Capital expenditure for the first half of 2025 significantly decreased to **RMB 0.3 million**, with no material capital commitments or contingent liabilities Capital Expenditure | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Additions to Property, Plant and Equipment | 0.3 | 5.8 | - As of June 30, 2025, the group had no material capital commitments or contingent liabilities[71](index=71&type=chunk)[76](index=76&type=chunk) [Outlook](index=17&type=section&id=Outlook) For the second half of 2025, the global economy is expected to continue its trend of slowing growth, increasing regional divergence, trade fragmentation, and policy uncertainty, while China's economy faces structural breakthroughs and domestic demand challenges, but supply-side reform 2.0, accelerated commercialization of tech manufacturing (e.g., AI terminals, drones), stable employment, expanded domestic demand, high-level opening-up, and green low-carbon development policies will inject new vitality into high-quality development - In the first half of 2025, the global economy exhibited a complex landscape of escalating risks and uneven recovery, with global economic growth slowing and major institutions generally lowering their full-year growth forecasts[77](index=77&type=chunk)[79](index=79&type=chunk) - China's economy achieved better-than-expected growth amidst internal and external pressures but still faces challenges such as unresolved deflationary pressure, increasing employment pressure, and insufficient consumer confidence[77](index=77&type=chunk)[79](index=79&type=chunk) - In the second half of 2025, China's economic development will confront challenges of structural breakthroughs and domestic demand strengthening, but policies such as supply-side reform 2.0, accelerated commercialization of technology manufacturing (e.g., AI terminals, drones), stable employment, expanded domestic demand, high-level opening-up, and green low-carbon development will inject new vitality[78](index=78&type=chunk)[80](index=80&type=chunk) - The group's key priorities for the second half include vigorously developing e-commerce platforms to expand sales, optimizing promotion strategies, and accelerating new product R&D; strengthening supply chain management, developing quality suppliers, enhancing production capacity, and shortening production and procurement cycles; and optimizing promotional expenses to improve overall profitability[82](index=82&type=chunk)[84](index=84&type=chunk) [Human Resources Management](index=18&type=section&id=Human%20Resources%20Management) The group considers high-quality employees a key asset for success, providing regular training and corporate culture education, along with competitive compensation and benefits; as of June 30, 2025, the group employed **481** staff, with total salaries and related costs amounting to approximately **RMB 51.5 million** - The group continuously enhances employees' knowledge and skills in nutritional supplements, maternal and infant nutrition, and cross-border e-commerce operations and promotion through comprehensive training and corporate culture education[82](index=82&type=chunk)[83](index=83&type=chunk) - As of June 30, 2025, the group employed **481** staff (**350** in China, **128** in New Zealand, and **3** in Australia)[82](index=82&type=chunk)[83](index=83&type=chunk) Salaries and Related Costs | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Total Salaries and Related Costs | 51.5 | 51.7 | [Other Information](index=18&type=section&id=Other%20Information) This section covers shareholding details, securities transactions, director and supervisor information, corporate governance, investments, and interim dividend policy [Shareholding Information](index=19&type=section&id=Shareholding%20Information) This section discloses the interests and short positions of directors, supervisors, senior management, and substantial shareholders in the company's shares and related shares [Directors', Supervisors' and Chief Executives' Interests](index=19&type=section&id=Directors%27%2C%20Supervisors%27%20and%20Chief%20Executives%27%20Interests) As of June 30, 2025, Executive Director Mr. Gui Pinghu held a **54.84%** H-share interest in the company, with his spouse Ms. Wu Yanmei holding **5.60%**, and other directors and supervisors also holding minor H-share interests Shareholding of Directors, Supervisors, and Senior Management (June 30, 2025) | Name | Capacity | Nature of Interest | Class of Shares | Number of Shares Held | Approximate % of Total Share Capital | | :--- | :--- | :--- | :--- | :--- | :--- | | Mr. Gui Pinghu | Director | Beneficial Owner | H Shares | 518,937,108 | 54.84 | | Mr. Gui Pinghu | Director | Spouse's Interest | H Shares | 52,965,000 | 5.60 | | Ms. Zhang Yuan | Director | Beneficial Owner | H Shares | 6,817,550 | 0.72 | | Ms. Zhu Feifei | Director | Beneficial Owner | H Shares | 659,340 | 0.07 | | Ms. Yu Min | Supervisor | Beneficial Owner | H Shares | 409,340 | 0.04 | [Substantial Shareholders' Interests](index=21&type=section&id=Substantial%20Shareholders%27%20Interests) As of June 30, 2025, in addition to directors and supervisors, Ms. Wu Yanmei, Mr. Gui Ke, Derun Group (International) Holdings Limited, and its associates were substantial shareholders, holding **5%** or more of the company's shares Shareholding of Substantial Shareholders (June 30, 2025) | Name/Entity | Nature of Interest | Class of Shares | Number of Shares Held | Approximate % of Total Share Capital | | :--- | :--- | :--- | :--- | :--- | | Ms. Wu Yanmei | Beneficial Owner | H Shares | 52,965,000 | 5.60 | | Ms. Wu Yanmei | Spouse's Interest | H Shares | 518,937,108 | 54.84 | | Mr. Gui Ke | Beneficial Owner | H Shares | 65,923,000 | 6.97 | | Ms. Li Shi | Spouse's Interest | H Shares | 65,923,000 | 6.97 | | Derun Group (International) Holdings Limited | Beneficial Owner | H Shares | 59,121,600 | 6.25 | | Derun Group Holdings Limited | Controlled Corporation Interest | H Shares | 59,121,600 | 6.25 | | Ms. Guan Liwen | Controlled Corporation Interest | H Shares | 59,121,600 | 6.25 | | Ms. Guan Liwen | Spouse's Interest | H Shares | 404,000 | 0.04 | | Mr. Peng Shaoyan | Controlled Corporation Interest | H Shares | 59,121,600 | 6.25 | | Mr. Peng Shaoyan | Beneficial Owner | H Shares | 404,000 | 0.04 | [Securities Transactions](index=23&type=section&id=Securities%20Transactions) For the six months ended June 30, 2025, neither the company nor its subsidiaries purchased, redeemed, or sold any of the company's listed securities, nor did they hold any treasury shares - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, redeemed, or sold any of the company's listed securities[100](index=100&type=chunk)[105](index=105&type=chunk) - For the six months ended June 30, 2025, the group held no treasury shares[100](index=100&type=chunk)[105](index=105&type=chunk) [Directors and Supervisors Information](index=23&type=section&id=Directors%20and%20Supervisors%20Information) Executive Director Mr. Gui Pinghu was appointed as a director of Living Nature Natural Products Limited and Living Nature Limited on June 1, 2025, while Executive Director Ms. Zhang Yuan resigned from her directorships in both companies on the same date, with no other changes to director and supervisor information since the publication date of the 2024 annual report - Executive Director Mr. Gui Pinghu was appointed as a director of Living Nature Natural Products Limited and Living Nature Limited on **June 1, 2025**[101](index=101&type=chunk)[106](index=106&type=chunk) - Executive Director Ms. Zhang Yuan resigned as a director of Living Nature Natural Products Limited and Living Nature Limited on **June 1, 2025**[101](index=101&type=chunk)[106](index=106&type=chunk) - Save as disclosed, there have been no changes to the information on directors and supervisors since the publication date of the company's 2024 annual report[102](index=102&type=chunk)[106](index=106&type=chunk) [Corporate Governance](index=23&type=section&id=Corporate%20Governance) The company adopted the Model Code set out in Appendix C3 of the Listing Rules as the code of conduct for directors' securities transactions, with all directors and supervisors confirming compliance during the reporting period, and the company's corporate governance practices align with the principles and code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules - The company has adopted the Model Code set out in Appendix C3 of the Listing Rules of the Stock Exchange as the code of conduct for directors' dealings in the company's securities[103](index=103&type=chunk)[107](index=107&type=chunk) - All directors and supervisors have confirmed their compliance with the Model Code for the six months ended June 30, 2025, and up to the date of this interim report[103](index=103&type=chunk)[107](index=107&type=chunk) - The directors believe that the company has complied with the code provisions set out in Part 2 of the Corporate Governance Code contained in Appendix C1 of the Listing Rules for the six months ended June 30, 2025, and up to the date of this interim report[104](index=104&type=chunk)[108](index=108&type=chunk) [Investments and Events](index=24&type=section&id=Investments%20and%20Events) For the six months ended June 30, 2025, the company made no significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures, and no material events affecting the group occurred after the reporting period - For the six months ended June 30, 2025, there were no material investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures[109](index=109&type=chunk)[113](index=113&type=chunk) - No material events affecting the group occurred after the six months ended June 30, 2025, and up to the date of this interim report[110](index=110&type=chunk)[114](index=114&type=chunk) [Interim Dividend](index=24&type=section&id=Interim%20Dividend) The Board resolved not to declare any interim dividend for the six months ended June 30, 2025, consistent with the prior period - The Board resolved not to declare any interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[111](index=111&type=chunk)[115](index=115&type=chunk) [Audit Committee](index=24&type=section&id=Audit%20Committee) The company's Audit Committee reviewed the group's unaudited condensed consolidated interim results for the six months ended June 30, 2025, comprising three independent non-executive directors chaired by Mr. Ye Bangyin, with primary responsibilities including reviewing and monitoring financial reporting, internal controls, and risk management systems - The group's unaudited interim condensed consolidated financial results for the six months ended June 30, 2025, have been reviewed by the company's Audit Committee[112](index=112&type=chunk)[116](index=116&type=chunk) - The Audit Committee comprises three independent non-executive directors, Mr. Yu Bo, Mr. Ye Bangyin, and Mr. Cheng Jianming, with Mr. Ye Bangyin serving as Chairman[112](index=112&type=chunk)[116](index=116&type=chunk) - The primary responsibilities of the Audit Committee are to review and monitor the company's financial reporting, internal control, and risk management systems, and to assist the Board in fulfilling its audit responsibilities[112](index=112&type=chunk)[116](index=116&type=chunk) [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=24&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement presents the group's financial performance, including revenue, gross profit, and profit for the period, along with other comprehensive income [Consolidated Profit and Loss](index=24&type=section&id=Consolidated%20Profit%20and%20Loss) For the six months ended June 30, 2025, the group reported revenue of **RMB 332.4 million**, gross profit of **RMB 243.4 million**, profit for the period of **RMB 15.3 million**, and basic earnings per share of **1.62 cents**, with all metrics decreasing compared to the prior period Summary of Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 332,364 | 370,189 | | Cost of Sales | (88,975) | (101,503) | | Gross Profit | 243,389 | 268,686 | | Other Income and Gains | 3,819 | 3,492 | | Selling and Distribution Expenses | (190,710) | (186,263) | | Administrative Expenses | (36,462) | (37,420) | | Finance Costs | (1,672) | (1,723) | | Other Expenses | (561) | (6,439) | | Profit Before Tax | 17,803 | 40,333 | | Income Tax Expense | (2,481) | (6,924) | | Profit for the Period | 15,322 | 33,409 | | Exchange differences on translation of foreign operations | 13,689 | (2,523) | | Total Comprehensive Income for the Period | 29,011 | 30,886 | | Basic Earnings Per Share | 1.62 cents | 3.53 cents | [Interim Condensed Consolidated Statement of Financial Position](index=25&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement provides a snapshot of the group's assets, liabilities, and equity as of the reporting date [Consolidated Financial Position](index=25&type=section&id=Consolidated%20Financial%20Position) As of June 30, 2025, the group's total assets were **RMB 549.3 million**, net current assets were **RMB 250.2 million**, and net assets were **RMB 423.1 million**, with both total assets and net assets increasing compared to December 31, 2024 Summary of Interim Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 76,793 | 80,416 | | Investment Properties | 56,857 | 57,256 | | Right-of-use Assets | 37,426 | 37,117 | | Goodwill | 31,870 | 30,023 | | Other Intangible Assets | 130 | 912 | | Deferred Tax Assets | 12,518 | 12,288 | | Other Non-current Assets | 791 | 214 | | **Total Non-current Assets** | **216,385** | **218,226** | | **Current Assets** | | | | Inventories | 112,467 | 119,085 | | Trade Receivables | 62,482 | 41,902 | | Prepayments, Deposits and Other Receivables | 21,879 | 21,814 | | Cash and Cash Equivalents | 136,115 | 104,530 | | **Total Current Assets** | **332,943** | **287,331** | | **Total Assets** | **549,328** | **505,557** | | **Current Liabilities** | | | | Trade Payables | 17,868 | 12,750 | | Other Payables and Accruals | 36,213 | 44,145 | | Interest-bearing Loans and Borrowings | 20,000 | – | | Lease Liabilities | 4,759 | 4,286 | | Tax Payable | 3,908 | 7,958 | | **Total Current Liabilities** | **82,748** | **69,139** | | **Net Current Assets** | **250,195** | **218,192** | | **Total Assets Less Current Liabilities** | **466,580** | **436,418** | | **Non-current Liabilities** | | | | Lease Liabilities | 30,606 | 29,615 | | Deferred Tax Liabilities | 12,081 | 11,968 | | Provisions | 786 | 739 | | **Total Non-current Liabilities** | **43,473** | **42,322** | | **Net Assets** | **423,107** | **394,096** | | **Total Equity** | **423,107** | **394,096** | [Interim Condensed Consolidated Statement of Changes in Equity](index=26&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This statement details the changes in the group's equity attributable to owners of the parent during the reporting period [Consolidated Changes in Equity](index=26&type=section&id=Consolidated%20Changes%20in%20Equity) As of June 30, 2025, total equity attributable to owners of the parent was **RMB 423.1 million**, an increase of approximately **RMB 29 million** from the beginning of the year, primarily due to profit for the period and an increase in exchange fluctuation reserve Summary of Interim Condensed Consolidated Statement of Changes in Equity | Item | January 1, 2025 (Audited) (RMB thousand) | Profit for the Period (RMB thousand) | Exchange Differences (RMB thousand) | June 30, 2025 (Unaudited) (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Share Capital | 94,630 | – | – | 94,630 | | Capital Reserve | 544,223 | – | – | 544,223 | | Exchange Fluctuation Reserve | (23,201) | – | 13,689 | (9,512) | | Statutory Surplus Reserve | 55,902 | – | – | 55,902 | | Merger Reserve | (3,871) | – | – | (3,871) | | Other Reserves | (2,022) | – | – | (2,022) | | Asset Revaluation Reserve | 12,972 | – | – | 12,972 | | Accumulated Losses | (284,537) | 15,322 | – | (269,215) | | **Total Equity** | **394,096** | **15,322** | **13,689** | **423,107** | [Interim Condensed Consolidated Statement of Cash Flows](index=27&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This statement provides an overview of the group's cash inflows and outflows from operating, investing, and financing activities [Consolidated Cash Flows](index=27&type=section&id=Consolidated%20Cash%20Flows) For the six months ended June 30, 2025, the group generated net cash inflow of **RMB 9.5 million** from operating activities, net cash outflow of **RMB 0.03 million** from investing activities, net cash inflow of **RMB 17.7 million** from financing activities, with cash and cash equivalents totaling **RMB 136.1 million** at period-end Summary of Interim Condensed Consolidated Statement of Cash Flows | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Net cash generated from/(used in) operating activities | 9,480 | (32,287) | | Net cash used in investing activities | (32) | (5,135) | | Net cash generated from/(used in) financing activities | 17,726 | (2,272) | | Net increase/(decrease) in cash and cash equivalents | 27,174 | (39,694) | | Cash and cash equivalents at beginning of period | 104,530 | 117,556 | | Effect of foreign exchange rate changes, net | 4,411 | (884) | | Cash and cash equivalents at end of period | 136,115 | 76,978 | [Notes to the Interim Condensed Consolidated Financial Statements](index=28&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanatory notes to the interim condensed consolidated financial statements, covering accounting policies, segment information, and specific financial line items [Corporate and Group Information](index=29&type=section&id=Corporate%20and%20Group%20Information) The company, a joint stock company incorporated in China, primarily manufactures and sells nutritional supplements and health foods in China, Australia, and New Zealand, with notes detailing key subsidiaries including their place of registration, date of establishment, registered capital, and principal activities - The company is a joint stock company incorporated in the People's Republic of China, primarily engaged in the manufacture and sale of nutritional supplements and health foods in China, Australia, and New Zealand[123](index=123&type=chunk)[124](index=124&type=chunk)[125](index=125&type=chunk)[126](index=126&type=chunk) - Key subsidiaries include Nanjing ZhongSheng Bio-Technology Co., Ltd. (production, processing, and sale of health foods), New Good Health Nutrition (Nanjing) Co., Ltd. (retail of health foods and e-commerce operations), and Good Health Products Limited (New Zealand, production, processing, and sale of health foods)[128](index=128&type=chunk)[131](index=131&type=chunk) [Basis of Preparation and Changes to Accounting Policies](index=31&type=section&id=Basis%20of%20Preparation%20and%20Changes%20to%20Accounting%20Policies) The interim condensed consolidated financial statements are prepared in accordance with HKAS 34 and presented in RMB, with the first-time adoption of revised HKFRS accounting standards in this period having no material impact on financial information due to the convertibility of the group's transaction and functional currencies - The group's unaudited interim condensed consolidated financial statements for the six months ended June 30, 2025, have been prepared in accordance with Hong Kong Accounting Standard 34 Interim Financial Reporting and are presented in Renminbi[132](index=132&type=chunk)[133](index=133&type=chunk)[136](index=136&type=chunk) - This period marks the first-time adoption of revised Hong Kong Financial Reporting Standards accounting standards, specifically the amendments to Hong Kong Accounting Standard 21 'Lack of Exchangeability'[134](index=134&type=chunk)[135](index=135&type=chunk)[137](index=137&type=chunk) - As the currencies used for the group's transactions and the functional currencies used by group entities for translating the group's presentation currency are convertible, these amendments have had no impact on the interim condensed consolidated financial information[135](index=135&type=chunk)[137](index=137&type=chunk) [Operating Segment Information](index=32&type=section&id=Operating%20Segment%20Information) The group operates a single reportable segment, manufacturing and selling nutritional supplements and health foods in China, Australia, and New Zealand, with revenue primarily from mainland China, followed by New Zealand and Australia, and non-current assets also predominantly located in these regions - The group operates a single business unit based on its products and has a single reportable segment, which is the manufacture and sale of nutritional supplements and packaged health foods in China, Australia, and New Zealand[138](index=138&type=chunk)[139](index=139&type=chunk) Revenue Analysis by Major Market | Region | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Mainland China | 273,002 | 304,902 | | New Zealand | 52,571 | 52,862 | | Australia | 437 | 3,463 | | Other Countries | 6,354 | 8,962 | | **Total** | **332,364** | **370,189** | Geographical Distribution of Non-current Assets (excluding goodwill and deferred tax assets) | Region | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Mainland China | 134,373 | 138,178 | | New Zealand | 37,445 | 37,564 | | Australia | 179 | 173 | | **Total** | **171,997** | **175,915** | - No revenue from transactions with a single external customer accounted for **10%** or more of the group's revenue[144](index=144&type=chunk)[146](index=146&type=chunk) [Revenue, Other Income and Gains](index=34&type=section&id=Revenue%2C%20Other%20Income%20and%20Gains) Revenue primarily derives from goods sales, recognized at a specific point in time, while other income and gains mainly comprise bank interest income, government grants, reversal of impairment on trade receivables, net exchange differences, and rental income - Revenue refers to the net invoiced value of goods sold after deducting returns and trade discounts, and the value of services provided, all recognized at the point in time when goods or services are transferred[148](index=148&type=chunk)[150](index=150&type=chunk)[153](index=153&type=chunk) Analysis of Other Income and Gains | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Bank Interest Income | 798 | 572 | | Government Grants | 628 | 573 | | Reversal of Impairment on Trade Receivables | 163 | – | | Net Exchange Differences | 108 | – | | Rental Income | 1,899 | 2,089 | | Others | 223 | 258 | | **Total** | **3,819** | **3,492** | [Profit Before Tax](index=35&type=section&id=Profit%20Before%20Tax) Profit before tax is derived after deducting costs of inventories sold, staff costs, depreciation and amortization of various assets, lease payments, and R&D expenses, with a reversal of impairment on trade receivables and a net exchange gain recorded for the period Deductions from Profit Before Tax | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of Inventories Sold | 88,975 | 101,503 | | Staff Costs (excluding key management personnel remuneration) | 46,712 | 46,473 | | Depreciation of Right-of-use Assets | 1,486 | 1,554 | | Amortization of Intangible Assets | 811 | 1,003 | | Depreciation of Property, Plant and Equipment | 4,325 | 4,446 | | Lease Payments (not included in lease liabilities measurement) | 436 | 436 | | Trade Receivables (Reversal)/Impairment | (163) | 837 | | Net Exchange Differences | (108) | 4,737 | | Government Grants | (628) | (573) | | Research and Development Expenses | 440 | 416 | [Income Tax Expense](index=36&type=section&id=Income%20Tax%20Expense_Notes) Income tax expense for the first half of 2025 was **RMB 2.5 million**, a significant decrease from the prior period, with Chinese subsidiaries subject to a **25%** tax rate, New Zealand **28%**, and Australia **30%** Income Tax Expense | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Current — New Zealand | 2,318 | 8,218 | | Deferred | 163 | (1,294) | | **Total Tax Expense for the Period** | **2,481** | **6,924** | - Chinese subsidiaries are subject to an income tax rate of **25%**, New Zealand **28%**, and Australia **30%**[158](index=158&type=chunk)[160](index=160&type=chunk) [Dividend](index=36&type=section&id=Dividend_Notes) The Board resolved not to declare any interim dividend for the six months ended June 30, 2025, and no dividend has been proposed for the year ended December 31, 2024 - The Board resolved not to declare any interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[159](index=159&type=chunk)[161](index=161&type=chunk) - The Board has not proposed any dividend for the year ended December 31, 2024[159](index=159&type=chunk)[161](index=161&type=chunk) [Earnings Per Share](index=37&type=section&id=Earnings%20Per%20Share) Basic earnings per share are calculated based on the profit for the period attributable to ordinary equity holders of the parent and the weighted average number of ordinary shares outstanding, with no potential dilutive ordinary shares outstanding for the periods ended June 30, 2025, and 2024 - Basic earnings per share are calculated based on the profit for the period attributable to ordinary equity holders of the parent and the weighted average number of **946,298,370** ordinary shares outstanding during the period[162](index=162&type=chunk)[164](index=164&type=chunk) - For the periods ended June 30, 2025, and 2024, the group had no potential dilutive ordinary shares outstanding[163](index=163&type=chunk)[165](index=165&type=chunk) Basic Earnings Per Share Calculation | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit attributable to ordinary equity holders of the parent | 15,322 | 33,409 | | Weighted average number of ordinary shares outstanding | 946,298,370 | 946,298,370 | [Property, Plant and Equipment](index=38&type=section&id=Property%2C%20Plant%20and%20Equipment) Additions to property, plant, and equipment for the period amounted to **RMB 253 thousand**, a significant decrease from the prior period, with no impairment losses recognized for either period Additions to Property, Plant and Equipment | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Additions to Property, Plant and Equipment | 253 | 9,028 | - No impairment losses were recognized for property, plant, and equipment for the current or prior period[169](index=169&type=chunk) [Inventories](index=38&type=section&id=Inventories_Notes) As of June 30, 2025, the group's total inventories amounted to **RMB 112.5 million**, a **5.5%** decrease from the end of 2024, primarily driven by a reduction in raw materials Composition of Inventories | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Raw Materials | 7,032 | 18,332 | | Work-in-progress | 3,175 | 1,523 | | Finished Goods | 102,057 | 99,144 | | Purchased Goods | 203 | 86 | | **Total** | **112,467** | **119,085** | [Trade Receivables](index=38&type=section&id=Trade%20Receivables_Notes) As of June 30, 2025, the net book value of trade receivables was **RMB 62.5 million**, a **49.2%** increase from the end of 2024, with receivables within one month accounting for the largest proportion, and a reversal of impairment loss of **RMB 163 thousand** recorded for the period Net Book Value of Trade Receivables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables | 65,990 | 45,429 | | Impairment | (3,508) | (3,527) | | **Net Book Value** | **62,482** | **41,902** | Ageing Analysis of Trade Receivables (by invoice date) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 month | 44,046 | 38,962 | | 1 to 3 months | 17,834 | 2,543 | | 3 months to 1 year | 429 | 303 | | Over 1 year | 173 | 94 | | **Total** | **62,482** | **41,902** | Movement in Provision for Impairment Loss on Trade Receivables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Beginning of Year | 3,527 | 2,994 | | Accumulated Impairment Loss | (163) | 759 | | Exchange Adjustment | 144 | (226) | | **Total** | **3,508** | **3,527** | [Prepayments, Deposits and Other Receivables](index=40&type=section&id=Prepayments%2C%20Deposits%20and%20Other%20Receivables) As of June 30, 2025, total prepayments, deposits, and other receivables amounted to **RMB 21.9 million**, largely consistent with the end of 2024, with none of these assets being overdue or impaired Composition of Prepayments, Deposits and Other Receivables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Prepayments | 16,716 | 17,195 | | Right of Return Assets | 440 | 36 | | Deposits and Other Receivables | 4,723 | 4,583 | | **Total** | **21,879** | **21,814** | - None of the aforementioned assets are overdue or impaired, and they involve receivables with no recent history of default[179](index=179&type=chunk) [Cash and Cash Equivalents](index=41&type=section&id=Cash%20and%20Cash%20Equivalents_Notes) As of June 30, 2025, total cash and cash equivalents amounted to **RMB 136.1 million**, primarily comprising cash and bank balances, representing an increase from the end of 2024 Composition of Cash and Cash Equivalents | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Cash and Bank Balances | 127,480 | 95,937 | | Time Deposits | 8,635 | 8,593 | | **Cash and Cash Equivalents** | **136,115** | **104,530** | [Trade Payables](index=41&type=section&id=Trade%20Payables_Notes) As of June 30, 2025, total trade payables amounted to **RMB 17.9 million**, a **39.8%** increase from the end of 2024, with trade payables being interest-free and typically settled within 30 to 90 days Ageing Analysis of Trade Payables (by invoice date) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 month | 14,912 | 11,310 | | 1 to 3 months | 1,836 | 124 | | 3 months to 1 year | 360 | 556 | | Over 1 year | 760 | 760 | | **Total** | **17,868** | **12,750** | - Trade payables are interest-free and generally settled within 30 to 90 days[184](index=184&type=chunk) [Other Payables and Accruals](index=42&type=section&id=Other%20Payables%20and%20Accruals) As of June 30, 2025, total other payables and accruals amounted to **RMB 36.2 million**, a decrease from the end of 2024, primarily due to reductions in accrued payroll and refund liabilities Composition of Other Payables and Accruals | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Accrued Payroll | 12,285 | 22,480 | | Contract Liabilities | 11,725 | 10,075 | | Other Payables | 9,045 | 5,030 | | Refund Liabilities | 1,922 | 3,170 | | Other Taxes Payable | 1,236 | 3,390 | | **Total** | **36,213** | **44,145** | - Other payables are non-interest bearing[187](index=187&type=chunk) [Share Capital](index=43&type=section&id=Share%20Capital) As of June 30, 2025, the company had **946,298,370** issued and fully paid ordinary shares, with total share capital of **RMB 94.6 million**, consistent with the end of 2024 Share Capital Information | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Number of Issued and Fully Paid Ordinary Shares | 946,298,370 | 946,298,370 | | Share Capital | 94,630 | 94,630 | [Related Party Disclosures](index=43&type=section&id=Related%20Party%20Disclosures) This section discloses the remuneration of the group's key management personnel, including basic salaries and bonuses, social insurance, and housing provident fund contributions Key Management Personnel Remuneration | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Basic Salaries and Bonuses | 4,749 | 5,184 | | Social Insurance and Housing Provident Fund | 84 | 85 | | **Total Remuneration Paid to Key Management Personnel** | **4,833** | **5,269** | [Financial Instruments by Category](index=44&type=section&id=Financial%20Instruments%20by%20Category) As of June 30, 2025, total financial assets measured at amortized cost amounted to **RMB 203.3 million**, and total financial liabilities were **RMB 26.9 million** Financial Assets Measured at Amortized Cost | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables | 62,482 | 41,902 | | Financial Assets included in Prepayments, Deposits and Other Receivables | 4,723 | 4,583 | | Cash and Cash Equivalents | 136,115 | 104,530 | | **Total** | **203,320** | **151,015** | Financial Liabilities Measured at Amortized Cost | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Payables | 17,868 | 12,750 | | Financial Liabilities included in Other Payables and Accruals | 9,045 | 5,030 | | **Total** | **26,913** | **17,780** | [Fair Value and Fair Value Hierarchy of Financial Instruments](index=45&type=section&id=Fair%20Value%20and%20Fair%20Value%20Hierarchy%20of%20Financial%20Instruments) The carrying amounts of the group's financial instruments are reasonably approximate to their fair values, with no significant differences - The carrying amounts of the group's financial instruments are reasonably approximate to their fair values[195](index=195&type=chunk)[198](index=198&type=chunk) - Management assesses that the fair values of trade receivables, financial assets included in prepayments, deposits and other receivables, trade payables, and financial liabilities included in other payables and accruals do not differ significantly from their carrying amounts[196](index=196&type=chunk)[198](index=198&type=chunk) [Events After the Reporting Period](index=45&type=section&id=Events%20After%20the%20Reporting%20Period) No significant events affecting the group occurred after June 30, 2025 - No significant events affecting the group occurred after June 30, 2025[197](index=197&type=chunk)[199](index=199&type=chunk)

Financial Performance - For the six months ended June 30, 2025, the company reported revenue of RMB 621,460,000, a 27.5% increase from RMB 487,229,000 in the same period of 2024[13]. - The gross profit for the same period was RMB 217,312,000, compared to RMB 185,201,000 in 2024, reflecting a growth of 17.3%[13]. - The operating loss decreased to RMB 439,067,000 from RMB 530,386,000 year-over-year, indicating an improvement in operational efficiency[13]. - The adjusted net loss for the period was RMB 367,784,000, slightly higher than RMB 363,535,000 in 2024[13]. - The EBITDA adjusted loss for the period was RMB 323,144,000, compared to RMB 308,602,000 in 2024, indicating ongoing challenges in profitability[13]. - The overall gross profit for the six months ended June 30, 2025, was RMB 217.3 million, a 17.3% increase from RMB 185.2 million in the same period of 2024, with a gross margin of 35.0%, down from 38.0%[51]. - Operating loss for the six months ended June 30, 2025, was RMB 439,067,000, a decrease of 17.2% from RMB 530,386,000 in the previous year[58]. - The company's net financial income increased from RMB 7.6 million to RMB 10.2 million, primarily due to reduced interest expenses[59]. - The company reported a net loss of RMB 435,132,000 for the six months ended June 30, 2025, compared to a net loss of RMB 531,171,000 for the same period in 2024, indicating a reduction in losses of approximately 18.1%[152]. - The total comprehensive loss for the six months ended June 30, 2025, was RMB 450,565,000, down from RMB 540,055,000 in 2024, reflecting a reduction of 16.6%[155]. - Basic and diluted loss per share for the six months ended June 30, 2025, was RMB 0.94, compared to RMB 1.23 for the same period in 2024, indicating an improvement of 23.6%[155]. Revenue Breakdown - Revenue from educational intelligent robots and solutions accounted for 38.6% of total revenue, up from 33.1% in 2024, totaling RMB 239,819,000[14]. - Revenue from consumer-grade robots and other hardware reached RMB 260,051,000, representing 41.8% of total revenue, an increase from 35.8% in the previous year[14]. - Revenue from the education intelligent robot and intelligent robot solutions business increased by 48.8%, from RMB 161.2 million for the six months ending June 30, 2024, to RMB 239.8 million for the six months ending June 30, 2025[30]. - Revenue from consumer-grade robots and other hardware increased by 48.9% from RMB 174.7 million for the six months ending June 30, 2024, to RMB 260.1 million for the six months ending June 30, 2025[40]. - Revenue from logistics intelligent robots decreased by 5.7% to RMB 56.2 million, compared to RMB 59.6 million in the previous year, remaining relatively stable[47]. Research and Development - Research and development expenses for the six months ended June 30, 2025, were RMB 218.3 million, a decrease from RMB 227.5 million in the previous year, with R&D expenses accounting for 35.1% of revenue[54]. - The company is focusing on enhancing its technological capabilities and exploring strategic partnerships to strengthen its competitive position in the market[17]. - The company plans to focus on the development of the Walker S series industrial humanoid robots, enhancing key technologies such as integrated joints and collaborative intelligence[41]. - The company aims to continuously iterate its humanoid robot multimodal reasoning large model, leveraging high-quality industrial datasets for training and optimization[42]. - The company has implemented a data-driven hierarchical reinforcement learning framework, achieving a high-speed humanoid walking speed of 2 m/s, significantly improving the robot's mobility in real environments[24]. Technological Advancements - In the first half of 2025, the company achieved significant breakthroughs in core technologies for humanoid robots, laying a solid foundation for commercialization in industrial applications[20]. - The third-generation industrial humanoid robot Walker S2 was developed, featuring a hot-swappable autonomous battery system that allows for a 3-minute battery swap and 24/7 continuous operation[20]. - The upgraded BrainNet 2.0 architecture enables collaborative intelligence among humanoid robots, enhancing their operational capabilities in industrial scenarios[21]. - The company implemented a four-camera semantic VSLAM technology, improving stability and robustness in complex environments while simplifying deployment[22]. - The fourth-generation dexterous hand was developed, increasing fingertip load capacity by 100% to 12.5N, significantly improving operational flexibility[20]. Market Expansion and Strategy - The company plans to continue expanding its market presence and investing in new product development to drive future growth[17]. - The company is exploring the fifth-generation dexterous hand, which will feature richer multimodal perception capabilities and more flexible finger movements[20]. - The company is developing a cloud management platform and data management platform to support multi-robot collaborative operations and collective intelligence evolution[20]. - The company has established itself as a leader in formulating national standards for humanoid robots and embodied intelligence, contributing to the development of key technical requirements[20]. - The company has participated in over 70 industry events and competitions, covering nearly 3,000 participating teams and approximately 6,000 contestants, enhancing brand influence and internationalization[29]. Financial Position and Cash Flow - As of June 30, 2025, cash and cash equivalents amounted to approximately RMB 1,157.4 million, a decrease from RMB 1,191.0 million as of December 31, 2024[64]. - The company's leverage ratio improved to 57.2% as of June 30, 2025, down from 71.6% as of December 31, 2024, indicating better capital management[65]. - Total borrowings decreased from RMB 1,537.6 million as of December 31, 2024, to RMB 1,437.3 million as of June 30, 2025, primarily due to operational adjustments[70]. - Cash inflow from operating activities for the six months ended June 30, 2025, was RMB 705,737 thousand, an increase of 25.7% from RMB 560,890 thousand in 2024[158]. - Cash outflow from operating activities totaled RMB 1,076,551 thousand for the six months ended June 30, 2025, compared to RMB 988,048 thousand in 2024, representing an increase of 8.9%[158]. Corporate Governance and Structure - The company has adopted the corporate governance code as the basis for its governance practices, with a deviation from the code regarding the dual role of the CEO and Chairman[78]. - The board believes that the current structure, with a balance of executive and independent non-executive directors, is beneficial for management and aligns with the interests of the company and its shareholders[78]. - The company has made changes to its board and management structure, including the resignation and appointment of several directors effective June 27, 2025[82][84]. - The company has amended its articles of association, reflecting the cancellation of the supervisory board and related governance changes, approved at the extraordinary general meeting on June 3, 2025[80]. - The company has established a comprehensive employee compensation policy, including various benefits and a structured salary system[85]. Shareholder Information - As of June 30, 2025, the total issued share capital of the company is RMB 441,777,923, divided into 441,777,923 shares with a par value of RMB 1.00 each[129]. - The company did not recommend any interim dividend for the six months ended June 30, 2025, consistent with the previous period[131]. - Major shareholder Mr. Zhou Jian holds 33,186,040 domestic shares, representing 46.96% of the relevant class of shares[140]. - The total percentage of shares held by major shareholders exceeds 50%, indicating significant control over the company[140]. - The company has a diverse shareholder base, with multiple entities holding substantial stakes in both domestic and H shares[142].

[About Oceanwide Group](index=3&type=section&id=%E9%97%9C%E6%96%BC%E9%81%A0%E6%B4%8B) [Company Overview](index=3&type=section&id=%E9%97%9C%E6%96%BC%E9%81%A0%E6%B4%8B_%E6%A6%82%E8%A6%BD) Oceanwide Group is a Hong Kong-listed diversified industrial company focused on healthy architecture, with core businesses in property development, investment, management, and new ventures - Oceanwide Group's strategic vision is to be a "creator of healthy architecture and social value," aiming to be a diversified industrial company focused on core development and related new businesses[5](index=5&type=chunk) - Core businesses include residential development, property development and operation, property services, and full-chain construction services, expanding into elderly care apartments, data properties, logistics properties, and real estate funds[5](index=5&type=chunk) Land Reserve Overview | Indicator | Data | | :--- | :--- | | Land Reserve (as of June 30, 2025) | Approximately 27 million square meters | [Company Information](index=4&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) [Basic Information](index=4&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99_%E5%9F%BA%E6%9C%AC%E4%BF%A1%E6%81%AF) Oceanwide Group provides essential company details, including board composition, committee members, registered and principal business locations, key banks, auditors, legal advisors, share registrars, and listing information - The Board of Directors comprises executive, non-executive, and independent non-executive directors, with committees for audit, nomination, remuneration, strategy, and investment[8](index=8&type=chunk) - The company's registered office is in Hong Kong, with its principal place of business in Beijing, China[9](index=9&type=chunk) - The auditor is BDO Limited (Hong Kong), and the legal counsel is Paul Hastings LLP (Hong Kong)[9](index=9&type=chunk) [Financial and Operational Highlights](index=6&type=section&id=%E8%B2%A1%E5%8B%99%E5%8F%8A%E7%87%9F%E9%81%8B%E6%91%98%E8%A6%81) [Key Financial and Operational Data](index=6&type=section&id=%E8%B2%A1%E5%8B%99%E5%8F%8A%E7%87%9F%E9%81%8B%E6%91%98%E8%A6%81_%E9%97%9C%E9%8D%B5%E6%95%B8%E6%93%9A) Oceanwide Group's H1 2025 financial and operational performance faced challenges with significant declines in contracted sales and revenue, yet achieved a profit due to offshore debt restructuring gains H1 2025 Key Financial Data (RMB million) | Indicator (RMB million) | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Contracted Sales | 13,370 | 18,330 | -27% | | Revenue | 6,203 | 13,313 | -53% | | Gross Loss / (Profit) | -4,966 | 297 | Not Applicable | | Profit / (Loss) for the Period | 9,056 | -5,390 | Not Applicable | | Profit / (Loss) Attributable to Owners of the Company | 10,202 | -5,382 | Not Applicable | | Basic Earnings / (Loss) Per Share (RMB) | 1.171 | -0.707 | Not Applicable | | Gross Loss / (Profit) Margin (%) | -80% | 2% | -82 percentage points | | Net Profit / (Loss) Margin (%) | 147% | -40% | 187 percentage points | | Saleable GFA Sold (thousand square meters) | 849 | 1,514 | -44% | | Saleable GFA Delivered (thousand square meters) | 340 | 755 | -55% | Balance Sheet and Land Reserve (RMB million) | Indicator (RMB million) | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total Assets | 165,240 | 181,405 | -9% | | Equity Attributable to Owners of the Company | 4,117 | -12,659 | Not Applicable | | Cash Resources | 5,831 | 4,828 | 21% | | Net Gearing Ratio (%) | 743% | Not Applicable | Not Applicable | | Current Ratio (times) | 0.93 | 0.88 | 6% | | Land Reserve (thousand square meters) | 27,232 | 31,072 | -12% | [Chairman's Report](index=8&type=section&id=%E4%B8%BB%E5%B8%AD%E5%A0%B1%E5%91%8A) [2025 Interim Results](index=8&type=section&id=%E4%B8%BB%E5%B8%AD%E5%A0%B1%E5%91%8A_2025%E5%B9%B4%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE) Oceanwide Group's H1 2025 revenue decreased by 53% to RMB 6.203 billion, resulting in a gross loss, but a net profit attributable to owners of RMB 10.202 billion was achieved due to offshore debt restructuring gains H1 2025 Performance Overview (RMB) | Indicator (RMB) | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | 6.203 billion | 13.313 billion | -53% | | Gross Loss / (Profit) | -4.966 billion | 297 million | Not Applicable | | Profit Attributable to Owners of the Company | 10.202 billion | -5.382 billion | Not Applicable | | Basic Earnings Per Share | 1.171 | -0.707 | Not Applicable | | Diluted Earnings Per Share | 0.919 | -0.707 | Not Applicable | [Market Review and Outlook](index=8&type=section&id=%E4%B8%BB%E5%B8%AD%E5%A0%B1%E5%91%8A_%E5%B8%82%E5%A0%B4%E5%9B%9E%E9%A1%A7%E5%8F%8A%E5%B1%95%E6%9C%9B) China's real estate market continued its deep adjustment in H1 2025, with sales declining, and the industry is expected to transition towards asset-light operations and value-added services in the future - In H1 2025, national commercial property sales were approximately **RMB 4.4 trillion**, a **5.5% year-on-year decrease**, and a **52% decrease** compared to H1 2021[19](index=19&type=chunk) - The real estate market is expected to take time to recover in H2 2025, with industry risks still in the process of being cleared[19](index=19&type=chunk) - The industry will fully enter a new stage of improving quality and efficiency in existing assets, with commercial management, asset management, elderly care apartments, property services, and urban renewal businesses seeing rapid development opportunities[19](index=19&type=chunk) [Performance Review and Strategy](index=8&type=section&id=%E4%B8%BB%E5%B8%AD%E5%A0%B1%E5%9B%9E%E9%A1%A7%E8%88%87%E7%AD%96%E7%95%A5) In H1 2025, Oceanwide Group focused on operational stability and risk mitigation, achieving high-quality deliveries, completing offshore debt restructuring, advancing onshore debt restructuring, and accelerating asset-light business transformation - In H1 2025, approximately **12,000 residential units** were delivered across 23 cities nationwide, with overall delivery quality consistently ranking in the **industry TOP10** for three consecutive years[21](index=21&type=chunk) - Offshore debt restructuring officially became effective on March 27, 2025, reducing leverage by approximately **USD 4 billion** and significantly improving the balance sheet structure[23](index=23&type=chunk) - Oceanwide Holdings announced a comprehensive restructuring plan for onshore credit bonds on August 1, 2025, offering various settlement options including cash repurchase, equity economic interest rights, and asset-for-debt swaps[24](index=24&type=chunk) - Asset-light construction management business ranked **8th** in newly contracted area, entering the industry's first tier; elderly care apartment brand "Chunxuanmao" manages over **11,000 beds**; Oceanwide Services' market expansion significantly improved[25](index=25&type=chunk)[28](index=28&type=chunk) - ESG performance continues to lead, with GRESB and CDP Climate Change ratings being the highest among Chinese property developers, and green building projects accounting for over **75%** of the total[29](index=29&type=chunk) [Company Strategy for H2 2025](index=10&type=section&id=%E4%B8%BB%E5%B8%AD%E5%A0%B1%E5%91%8A_2025%E5%B9%B4%E4%B8%8B%E5%8D%8A%E5%B9%B4%E5%85%AC%E5%8F%B8%E7%AD%96%E7%95%A5) Oceanwide Group's H2 2025 strategy emphasizes high-quality delivery, sustainable operations through accelerated sales and asset disposal, enhanced cash flow management, and vigorous expansion of asset-light businesses - In H2, the company will continue to prioritize high-quality delivery, fully commit to sustainable operations, and vigorously expand asset-light businesses[30](index=30&type=chunk) - Sustainable operations include accelerating sales collection, increasing asset disposal and activation, strengthening cash flow management, and comprehensively enhancing debt risk resolution capabilities[30](index=30&type=chunk) - Vigorously expand asset-light businesses, developing construction management, commercial management, asset management, elderly care apartments, property services, and exploring urban renewal and distressed asset disposal[31](index=31&type=chunk) [Management Discussion and Analysis](index=12&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) [Financial Review](index=12&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90_%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) Oceanwide Group's H1 2025 revenue declined by 53% to RMB 6.203 billion, resulting in a gross loss, but a significant one-time non-cash gain from offshore debt restructuring led to a net profit Revenue Composition (RMB million) | Revenue Composition (RMB million) | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Property Development | 3,296 | 10,300 | -68% | | Property Investment | 144 | 181 | -20% | | Property Management and Related Services | 1,348 | 1,361 | -1% | | Other Real Estate Related Businesses | 1,415 | 1,471 | -4% | | **Total** | **6,203** | **13,313** | **-53%** | - Gross loss was **RMB 4.966 billion** (H1 2024: gross profit RMB 297 million), with a gross loss margin of approximately **80%**, mainly due to market adjustments and increased inventory impairment provisions[40](index=40&type=chunk) - The offshore debt restructuring gain of **RMB 31.756 billion** was a one-time non-cash gain, which was the primary reason for the profit attributable to owners of the company of **RMB 10.202 billion** for the period[42](index=42&type=chunk)[48](index=48&type=chunk) - Net impairment losses under the expected credit loss model significantly increased to **RMB 9.725 billion**, mainly due to provisions for trade and other receivables[45](index=45&type=chunk) [Financial Resources and Liquidity](index=14&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90_%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90%E5%8F%8A%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91) Oceanwide Group's total loans decreased significantly due to offshore debt restructuring, cash resources increased, and the current ratio improved, but the net gearing ratio remains high Loan Maturity (RMB million) | Loan Maturity (RMB million) | June 30, 2025 | Percentage | December 31, 2024 | Percentage | | :--- | :--- | :--- | :--- | :--- | | Due within 1 year | 41,676 | 62% | 65,935 | 67% | | Due in 1 to 2 years | 11,416 | 17% | 13,489 | 14% | | Due in 2 to 5 years | 5,489 | 8% | 13,285 | 13% | | Due in over 5 years | 8,416 | 13% | 5,664 | 6% | | **Total** | **66,997** | **100%** | **98,373** | **100%** | - Total cash resources increased to **RMB 5.831 billion**, and the current ratio was **0.93**[50](index=50&type=chunk) - The net gearing ratio was approximately **743%**, mainly due to the increase in total equity from offshore debt restructuring gains and a decrease in total loans[50](index=50&type=chunk) - As of June 30, 2025, the Group's total guarantees to banks for mortgage loans to property buyers, prior to completion of mortgage registration, amounted to **RMB 11.711 billion**[53](index=53&type=chunk) [Significant Acquisitions and Disposals of Subsidiaries, Associates, and Joint Ventures](index=16&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90_%E6%9C%89%E9%97%9C%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E3%80%81%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%90%88%E7%87%9F%E4%BC%81%E6%A5%AD%E7%9A%84%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE) Oceanwide Group disposed of a 23% equity interest in Beijing Shengyong Real Estate Investment Co., Ltd. for RMB 322 million in April 2025, retaining a 12% interest - On April 11, 2025, the company disposed of a **23% equity interest** in its associate, Beijing Shengyong Real Estate Investment Co., Ltd., for a consideration of **RMB 322,304,479.76**[56](index=56&type=chunk) - Following the disposal, the target company remains an associate of the company and is accounted for using the equity method[56](index=56&type=chunk) [Business Review](index=17&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90_%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The business review covers property development, investment properties, property management, and asset-light construction management, highlighting declines in development revenue and land bank, but growth in asset-light services - Property development revenue decreased by **68% year-on-year** to **RMB 3.296 billion**, and saleable GFA delivered decreased by **55%**[57](index=57&type=chunk) - Total contracted sales decreased by **27% year-on-year** to **RMB 13.370 billion**, but the average selling price increased by **41%** to **RMB 18,900 per square meter**[63](index=63&type=chunk) - Land reserve decreased to **27.232 million square meters**, with no new land acquisitions in H1[71](index=71&type=chunk) - Investment property revenue decreased by **20%** to **RMB 144 million**, but operations remained stable, and the asset-light strategy is actively pursued[82](index=82&type=chunk) - Oceanwide Services' total contracted GFA for property management services reached **121.6 million square meters**, and its asset-light construction management business, "Oceanwide Construction Management," ranked in the **TOP10** for new contract scale[86](index=86&type=chunk)[87](index=87&type=chunk) [Property Development](index=17&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90_%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7_%E7%89%A9%E6%A5%AD%E9%96%8B%E7%99%BC) Oceanwide Group's H1 2025 property development revenue and delivered area significantly decreased, while contracted sales also declined, but average selling price increased due to a focus on first and second-tier cities Property Development Key Data | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Property Development Revenue | 3.296 billion RMB | 10.300 billion RMB | -68% | | Saleable GFA Delivered | 340,000 square meters | 755,000 square meters | -55% | | Average Recognized Selling Price (excluding parking spaces) | 11,000 RMB/square meter | 15,000 RMB/square meter | -27% | Contracted Sales Key Data | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Contracted Sales | 13.370 billion RMB | 18.330 billion RMB | -27% | | Saleable GFA Sold | 849,000 square meters | 1,514,100 square meters | -44% | | Average Selling Price (excluding parking spaces) | 18,900 RMB/square meter | 13,400 RMB/square meter | +41% | Land Reserve Overview | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Land Reserve | 27,232,000 square meters | 31,072,000 square meters | -12% | | Attributable Portion of Land Reserve | 14,592,000 square meters | 16,464,000 square meters | -11% | | Average Land Cost | 6,400 RMB/square meter | 6,200 RMB/square meter | +3% | - Total GFA completed and total saleable GFA completed decreased by **84%** and **81%** respectively in H1[71](index=71&type=chunk) [Investment Properties](index=29&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90_%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7_%E6%8A%95%E8%B3%87%E7%89%A9%E6%A5%AD) Investment property revenue decreased by 20% in H1 2025, but operations remained stable, and the company continues to pursue an asset-light strategy for these assets Investment Property Revenue | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Investment Property Revenue | 144 million RMB | 181 million RMB | -20% | - As of June 30, 2025, the Group and its joint ventures and associates held over **23 operating investment properties**, with a total leasable area of approximately **3.565 million square meters**[82](index=82&type=chunk) - The investment property portfolio consists of **21% office buildings**, **48% logistics projects**, and **31% other properties** (commercial, parking spaces, etc.)[82](index=82&type=chunk) [Property Management and Related Services](index=31&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90_%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7_%E7%89%A9%E6%A5%AD%E7%AE%A1%E7%90%86%E5%8F%8A%E7%9B%B8%E9%97%9C%E6%9C%8D%E5%8B%99) Oceanwide Services maintained stable operations in H1 2025 with a slight revenue decrease, managing a total contracted GFA of 121.6 million square meters across 87 cities Property Management and Related Services Revenue | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Property Management and Related Services Revenue | 1.348 billion RMB | 1.361 billion RMB | -1% | - As of June 30, 2025, Oceanwide Services' total contracted GFA for property management services reached **121.6 million square meters**, and total GFA under management reached **93.5 million square meters**[86](index=86&type=chunk) [Asset-Light Construction Management Business](index=31&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90_%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7_%E8%BC%95%E8%B3%87%E7%94%A2%E4%BB%A3%E5%BB%BA%E6%A5%AD%E5%8B%99) Oceanwide Construction Management, the group's asset-light platform, provides comprehensive services across various property types and has entered the top tier of China's construction management firms by new contract scale - Oceanwide Construction Management provides full-process, full-chain services including consulting, product positioning, construction management, marketing, and quality delivery[87](index=87&type=chunk) - Oceanwide Construction Management ranked in the **TOP10** for newly signed scale among Chinese real estate construction management enterprises in H1 2025, entering the industry's first tier[87](index=87&type=chunk) [Other Information](index=32&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90_%E5%85%B6%E4%BB%96%E8%B3%87%E8%A8%8A) This section details principal risks, employee information, the auditor's disclaimer of conclusion due to going concern uncertainties, the completion of offshore debt restructuring, and ongoing onshore debt restructuring efforts - Principal risks include the performance of China's real estate market, economic conditions, changes in government policies, interest rate fluctuations, and exchange rate fluctuations[89](index=89&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk) - As of June 30, 2025, total employees were **12,218**, and employee compensation expenses decreased to **RMB 1.156 billion**[92](index=92&type=chunk) - The auditor issued a disclaimer of conclusion on the interim condensed consolidated financial statements, primarily due to multiple material uncertainties regarding going concern[93](index=93&type=chunk)[133](index=133&type=chunk) - Offshore debt restructuring became effective on March 27, 2025, involving the release of approximately **USD 6.315 billion** in covered debt and distribution of consideration[96](index=96&type=chunk) - Oceanwide Holdings announced a comprehensive restructuring plan for onshore credit bonds on August 1, 2025, and related bonds were suspended from trading on August 15[98](index=98&type=chunk)[99](index=99&type=chunk) - On July 16, 2025, the company and Oceanwide Services entered into a framework agreement for internal asset restructuring, returning **2,684 parking spaces** and resulting in the Group's net acquisition of approximately **36.18%** equity in the target assets[102](index=102&type=chunk) [Principal Risks and Uncertainties](index=32&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90_%E5%85%B6%E4%BB%96%E8%B3%87%E8%A8%8A_%E4%B8%BB%E8%A6%81%E9%A2%A8%E9%9A%AA%E5%8F%8A%E4%B8%8D%E6%98%8E%E6%9C%97%E5%9B%A0%E7%B4%A0) Oceanwide Group faces significant risks from China's volatile real estate market, economic conditions, government policies, interest rate fluctuations, and foreign exchange rate changes - Business and prospects are primarily dependent on the performance of the real estate market in mainland China, which is affected by various factors including social, political, economic, legal environment changes, and government policies[89](index=89&type=chunk) - Certain loans have floating interest rates, with the weighted average interest rate increasing to **5.84%** in H1 2025, exposing the company to interest rate fluctuation risk[90](index=90&type=chunk) - Approximately **15%** of loans are denominated in USD and HKD, exposing the company to net currency risk from exchange rate fluctuations[91](index=91&type=chunk) [Employees and Human Resources](index=32&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90_%E5%85%B6%E4%BB%96%E8%B3%87%E8%A8%8A_%E5%83%B1%E5%93%A1%E5%8F%8A%E4%BA%BA%E5%8A%9B%E8%B3%87%E6%BA%90) As of June 30, 2025, Oceanwide Group had 12,218 employees, a decrease from year-end 2024, primarily due to streamlining development and related business personnel Employee and Compensation Overview | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total Employees | 12,218 people | 12,586 people | -368 people | | Employee Compensation Expenses (RMB million) | 1,156 | 1,182 | -2.2% | - The decrease in employee numbers was mainly due to streamlining personnel in core development and related business segments[92](index=92&type=chunk) [Other Information Regarding Auditor's Disclaimer of Conclusion on 2025 Interim Condensed Consolidated Financial Statements](index=33&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90_%E5%85%B6%E4%BB%96%E8%B3%87%E8%A8%8A_%E6%9C%89%E9%97%9C%E6%A0%B8%E6%95%B8%E5%B8%AB%E5%B0%8D2025%E5%B9%B4%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E7%99%BC%E8%A1%A8%E7%9A%84%E4%B8%8D%E7%99%BC%E8%A1%A8%E7%B5%90%E8%AB%96%E7%9A%84%20%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) The auditor issued a disclaimer of conclusion on the H1 2025 interim financial statements due to multiple material uncertainties related to the group's ability to continue as a going concern - The auditor issued a disclaimer of conclusion on the 2025 interim condensed consolidated financial statements, primarily due to multiple uncertainties regarding going concern[93](index=93&type=chunk)[133](index=133&type=chunk) - Significant uncertainties regarding going concern include: current liabilities exceeding current assets by approximately **RMB 9.06 billion**, outstanding loans of approximately **RMB 14.03 billion**, outstanding onshore bonds of approximately **RMB 3.53 billion**, and approximately **RMB 11.97 billion** in borrowings that may be subject to accelerated repayment[129](index=129&type=chunk) - The validity of the going concern assumption depends on the successful implementation of the onshore debt restructuring plan, renewal of existing borrowings, securing additional new financing, resolving litigations, maintaining relationships with key contractors and suppliers, accelerating sales collection, and implementing cost control measures[131](index=131&type=chunk) [Completion of Overall Offshore Debt Management](index=34&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90_%E5%85%B6%E4%BB%96%E8%B3%87%E8%A8%8A_%E5%AE%8C%E6%88%90%E7%9B%B8%E9%97%9C%E5%A2%83%E5%A4%96%E5%82%B5%E5%8B%99%E4%B9%8B%E6%95%B4%E9%AB%94%E5%82%B5%E5%8B%99%E7%AE%A1%E7%90%86) Oceanwide Group's offshore debt restructuring became effective on March 27, 2025, reducing leverage by approximately USD 4 billion and significantly improving the balance sheet structure - Offshore debt restructuring officially became effective on **March 27, 2025**[96](index=96&type=chunk) - The restructuring involved the release of approximately **USD 6.315 billion** in covered debt, with consideration distributed to creditors including **USD 2.2 billion** in new debt (new loans and new notes) and **USD 4.115 billion** in mandatory convertible bonds and/or new perpetual securities[96](index=96&type=chunk) - Following the successful implementation of offshore debt restructuring, the Group's leverage was reduced by approximately **USD 4 billion**, significantly improving the balance sheet structure and substantially alleviating offshore liquidity pressure[96](index=96&type=chunk) [Information on Onshore Public Market Debt](index=34&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90_%E5%85%B6%E4%BB%96%E8%B3%87%E8%A8%8A_%E6%9C%89%E9%97%9C%E5%A2%83%E5%85%A7%E5%85%AC%E9%96%8B%E5%B8%82%E5%A0%B4%E5%82%B5%E5%8B%99%E7%9A%84%E7%9B%B8%E9%97%9C%E4%BF%A1%E6%81%AF) Oceanwide Holdings completed phased extensions for four onshore corporate bonds in H1 2025 and announced a comprehensive restructuring plan for onshore credit bonds on August 1, 2025 - Oceanwide Holdings completed phased extensions for **four onshore corporate bonds** in H1 2025[98](index=98&type=chunk) - Oceanwide Holdings announced a comprehensive restructuring plan for onshore credit bonds on **August 1, 2025**, offering various settlement options including cash repurchase, equity economic interest rights, and asset-for-debt swaps[98](index=98&type=chunk) - The **seven outstanding corporate bonds** of Oceanwide Holdings were suspended from trading on the Shanghai Stock Exchange starting **August 15, 2025**[99](index=99&type=chunk) [Significant Events After June 30, 2025](index=35&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90_%E5%85%B6%E4%BB%96%E8%B3%87%E8%A8%8A_%E6%88%AA%E8%87%B32025%E5%B9%B46%E6%9C%8830%E6%97%A5%E6%AD%A2%E6%9C%9F%E9%96%93%E5%BE%8C%E7%9A%84%E9%87%8D%E5%A4%A7%E4%BA%8B%E4%BB%B6) A significant post-reporting period event was the internal asset restructuring with Oceanwide Services on July 16, 2025, involving the return of 2,684 parking spaces to the Group - On **July 16, 2025**, the company and Oceanwide Services entered into a framework agreement for internal asset restructuring, involving the return of **2,684 parking spaces** to the Group[102](index=102&type=chunk) - The return will be conducted by revoking the original asset transfer, with the original transfer price of **RMB 323.2 million** to be settled through a long-term loan[102](index=102&type=chunk) - This transaction will result in the Group's net acquisition of approximately **36.18%** equity in the target assets[102](index=102&type=chunk) [Disclosure of Interests](index=36&type=section&id=%E6%AC%8A%E7%9B%8A%E6%8A%AB%E9%9C%B2) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares, and Debentures](index=36&type=section&id=%E6%AC%8A%E7%9B%8A%E6%8A%AB%E9%9C%B2_%E8%91%A3%E4%BA%8B%E5%8F%8A%E4%B8%BB%E8%A6%81%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%93%A1%E6%96%BC%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E5%8F%8A%E5%82%B5%E5%88%B8%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) This section discloses the interests and short positions of directors and the chief executive in the company's shares, underlying shares, and debentures as of June 30, 2025 Directors' Long Positions in Shares and Underlying Shares | Director Name | Capacity / Nature of Interest | Number of Shares Held | Percentage of Total Issued Share Capital of the Company (%) | | :--- | :--- | :--- | :--- | | Mr. Li Ming | Founder of a discretionary trust | 127,951,178 | 1.154% | | | Beneficiary of a trust | 14,914,200 | 0.135% | | | Beneficial owner | 65,445,000 | 0.590% | | Mr. Wang Honghui | Beneficial owner | 273,295 | 0.002% | | Mr. Cui Hongjie | Beneficial owner | 369,571 | 0.003% | | Mr. Han Xiaojing | Beneficial owner | 460,000 | 0.004% | [Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares and Underlying Shares](index=38&type=section&id=%E6%AC%8A%E7%9B%8A%E6%8A%AB%E9%9C%B2_%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E5%8F%8A%E5%85%B6%E4%BB%96%E4%BA%BA%E5%A3%AB%E6%96%BC%E8%82%A1%E4%BB%BD%E5%8F%8A%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) This section details the interests and short positions of substantial shareholders and other persons in the company's shares and underlying shares as of June 30, 2025 Substantial Shareholders' and Other Persons' Long Positions in Shares and Underlying Shares | Shareholder Name | Capacity / Nature of Interest | Number of Shares Held | Percentage of Total Issued Share Capital of the Company (%) | | :--- | :--- | :--- | :--- | | China Life Group | Interest in controlled corporation | 2,253,459,151 | 20.33% | | Dajia Insurance Group | Interest in controlled corporation | 2,252,646,115 | 20.32% | | HSBC Holdings plc | Interest in controlled corporation | 723,417,174 | 6.53% | | Walkers Fiduciary Limited | Interest in controlled corporation | 627,564,732 | 5.66% | [Corporate Governance and Other Information](index=39&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) [Compliance with Corporate Governance Code](index=39&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99_%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) Oceanwide Group adheres to good corporate governance practices and has complied with applicable code provisions, despite the combined roles of Chairman and CEO - The company has applied the principles of the Corporate Governance Code to its corporate governance framework and practices, and has complied with the applicable code provisions[113](index=113&type=chunk) - The roles of Chairman and Chief Executive Officer are combined, but the Board believes there is sufficient balance of power and enhanced efficiency in the company's daily operations[113](index=113&type=chunk) [Review of Interim Financial Information](index=39&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99_%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E5%AF%A9%E9%96%B1) The interim condensed consolidated financial statements for the six months ended June 30, 2025, have been reviewed by the auditor, BDO Limited - The interim condensed consolidated financial statements have been reviewed by the auditor, BDO Limited, and the review report is presented on pages 44 to 46 of the report[114](index=114&type=chunk) [Audit Committee](index=39&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99_%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee, comprising independent non-executive and non-executive directors, has reviewed the group's accounting policies, audit matters, internal controls, risk management, and financial reporting - The Audit Committee consists of three independent non-executive directors and two non-executive directors, with the chairman possessing professional accounting qualifications[115](index=115&type=chunk) - The committee has reviewed the Group's accounting policies, significant audit matters, internal controls, risk management, and financial reporting[115](index=115&type=chunk) [Interim Dividend](index=40&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99_%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board of Directors has resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board of Directors has resolved not to declare an interim dividend for the six months ended June 30, 2025[116](index=116&type=chunk) [Securities Transactions by Directors and Relevant Employees](index=40&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99_%E8%91%A3%E4%BA%8B%E5%8F%8A%E6%9C%89%E9%97%9C%E5%83%B1%E5%93%A1%E7%9A%84%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93) The company has adopted a code of conduct and confirmed directors' compliance with the Model Code and its own code regarding securities transactions - The company has adopted a code of conduct and confirmed that all directors have complied with the Model Code and the code of conduct during the reporting period[117](index=117&type=chunk) [Changes in Directors' Information](index=40&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99_%E8%91%A3%E4%BA%8B%E8%B3%87%E6%96%99%E8%AE%8A%E5%8B%95) This section outlines changes in directors' information from March 2025 to the reporting date, including re-appointments and changes in other public company directorships - Non-executive directors Mr. Zhang Zhongdang and Mr. Yu Zhiqiang renewed their advisory appointment letters[119](index=119&type=chunk) - Independent non-executive director Mr. Liu Jingwei's positions in other listed companies changed[119](index=119&type=chunk) [Share Option Scheme of the Company](index=40&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99_%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) The 2018 Share Option Scheme remains valid until August 5, 2028, with 17.4 million shares available for grant, representing approximately 0.15% of total issued share capital 2018 Share Option Scheme Overview | Participant Category | Date of Grant | Exercise Period | Exercise Price (HKD) | Unexercised as of Jan 1, 2025 (shares) | Lapsed during the period (shares) | Unexercised as of June 30, 2025 (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Director: Mr. Han Xiaojing | March 25, 2020 | March 25, 2021 to March 24, 2025 | 2.106 | 600,000 | (600,000) | – | - The number of share options available for grant under the 2018 Share Option Scheme is **17.4 million shares**, representing approximately **0.15%** of the total issued share capital[118](index=118&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=41&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99_%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B3%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) Neither the company nor its subsidiaries purchased, sold, or redeemed any of its listed securities during the review period, and no treasury shares were held as of June 30, 2025 - During the review period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[121](index=121&type=chunk) - As of June 30, 2025, the company did not hold any treasury shares[121](index=121&type=chunk) [Mandatory Convertible Bonds](index=41&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99_%E5%BC%B7%E5%88%B6%E5%8F%AF%E8%BD%89%E6%8F%9B%E5%82%B5%E5%88%B8) Oceanwide Group issued USD 2.927 billion in zero-coupon mandatory convertible bonds on March 27, 2025, as part of its offshore debt restructuring, with USD 1.233 billion already converted into shares - The company issued **USD 2,927,460,067** in aggregate principal amount of Series A, B, C, and D zero-coupon mandatory convertible bonds on **March 27, 2025**[122](index=122&type=chunk) - As of June 30, 2025, **USD 1,232,968,399** of mandatory convertible bonds had been converted, resulting in the issue and allotment of **3,468,531,088 shares**[123](index=123&type=chunk) - As of June 30, 2025, the aggregate principal amount of mandatory convertible bonds not yet converted was **USD 1,694,491,668**, which, if fully converted, would result in the issue of up to **3,066,508,812 shares**, representing approximately **27.66%** of the total issued shares[125](index=125&type=chunk) - Full conversion of mandatory convertible bonds will have a dilutive effect on major shareholders' holdings; for example, China Life Group's stake will decrease from **20.33% to 15.92%**[125](index=125&type=chunk) [Disclosure Pursuant to Rule 13.22 of the Listing Rules](index=43&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99_%E6%A0%B9%E6%93%9A%E4%B8%8A%E5%B8%82%E8%A6%8F%E5%89%87%E7%AC%AC13.22%E6%A2%9D%E7%9A%84%E6%8A%AB%E9%9C%B2) As of June 30, 2025, the total financial assistance provided by the Group to affiliated companies exceeded 8% of the asset ratio defined by Listing Rule 14.07(1) - As of June 30, 2025, the total financial assistance provided by the Group to affiliated companies exceeded **8%** of the asset ratio as defined by Listing Rule 14.07(1)[127](index=127&type=chunk) Pro Forma Consolidated Statement of Financial Position of Affiliated Companies (RMB million) | Pro Forma Consolidated Statement of Financial Position of Affiliated Companies (RMB million) | June 30, 2025 | | :--- | :--- | | Non-current Assets | 27,155 | | Current Assets | 71,280 | | Current Liabilities | (58,316) | | Non-current Liabilities | (34,340) | | **Net Assets** | **5,779** | [Review Report on Interim Condensed Consolidated Financial Statements](index=44&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E5%AF%A9%E9%96%B1%E5%A0%B1%E5%91%8A) [Basis for Disclaimer of Conclusion](index=44&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E5%AF%A9%E9%96%B1%E5%A0%B1%E5%91%8A_%E4%B8%8D%E7%99%BC%E8%A1%A8%E7%B5%90%E8%AB%96%E7%9A%84%E5%9F%BA%E6%BA%96) The auditor, BDO Limited, issued a disclaimer of conclusion on Oceanwide Group's H1 2025 interim condensed consolidated financial statements due to multiple material uncertainties regarding going concern - The auditor issued a disclaimer of conclusion on the interim condensed consolidated financial statements[133](index=133&type=chunk) - The basis for the disclaimer of conclusion is the existence of multiple material uncertainties regarding going concern[129](index=129&type=chunk)[131](index=131&type=chunk) - As of June 30, 2025, the Group's current liabilities exceeded current assets by approximately **RMB 9.06 billion**, total loans were approximately **RMB 67.0 billion**, of which current loans were approximately **RMB 41.68 billion**, while cash and cash equivalents were approximately **RMB 2.0 billion**[129](index=129&type=chunk) - The Group has outstanding loans with an aggregate principal amount of approximately **RMB 14.03 billion** and outstanding onshore bonds of approximately **RMB 3.53 billion**, and approximately **RMB 11.97 billion** in borrowings may be subject to accelerated repayment[129](index=129&type=chunk) - The onshore debt restructuring plan is still ongoing, and its successful implementation is uncertain[130](index=130&type=chunk)[131](index=131&type=chunk) [Interim Condensed Consolidated Financial Statements](index=47&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Interim Condensed Consolidated Statement of Profit or Loss](index=47&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) Oceanwide Group reported a profit of RMB 9.056 billion for H1 2025, primarily driven by a RMB 31.756 billion gain from offshore debt restructuring, despite a 53% revenue decline and gross loss Interim Condensed Consolidated Statement of Profit or Loss (RMB thousand) | Indicator (RMB thousand) | H1 2025 | H1 2024 (Restated) | | :--- | :--- | :--- | | Revenue | 6,203,069 | 13,313,451 | | Gross Loss / (Profit) | (4,966,164) | 296,808 | | Offshore Debt Restructuring Gain | 31,756,397 | – | | Profit / (Loss) for the Period | 9,056,157 | (5,390,396) | | Profit / (Loss) Attributable to Owners of the Company | 10,202,141 | (5,381,705) | [Interim Condensed Consolidated Statement of Comprehensive Income](index=48&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) Oceanwide Group's total comprehensive income for H1 2025 was RMB 9.551 billion, with RMB 10.707 billion attributable to owners, positively impacted by foreign exchange differences Interim Condensed Consolidated Statement of Comprehensive Income (RMB thousand) | Indicator (RMB thousand) | H1 2025 | H1 2024 (Restated) | | :--- | :--- | :--- | | Profit / (Loss) for the Period | 9,056,157 | (5,390,396) | | Exchange Differences | 496,686 | (133,173) | | Total Comprehensive Income / (Loss) for the Period | 9,551,310 | (5,880,805) | | Total Comprehensive Income / (Loss) Attributable to Owners of the Company | 10,706,576 | (5,900,271) | [Interim Condensed Consolidated Statement of Financial Position](index=49&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, Oceanwide Group's total assets decreased by 9% to RMB 165.24 billion, while equity attributable to owners turned positive to RMB 4.117 billion Interim Condensed Consolidated Statement of Financial Position (RMB thousand) | Indicator (RMB thousand) | June 30, 2025 | December 31, 2024 (Restated) | | :--- | :--- | :--- | | Total Non-current Assets | 45,451,226 | 50,234,407 | | Total Current Assets | 119,788,889 | 131,170,739 | | Total Current Liabilities | 128,849,857 | 148,357,977 | | Total Non-current Liabilities | 28,163,471 | 35,509,326 | | Equity Attributable to Owners of the Company | 4,117,119 | (12,659,291) | | Total Equity | 8,226,787 | (2,462,157) | [Interim Condensed Consolidated Statement of Changes in Equity](index=51&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) Equity attributable to owners shifted from a negative RMB 12.659 billion to a positive RMB 4.117 billion as of June 30, 2025, mainly due to H1 profit, currency exchange differences, and perpetual securities issued post-offshore debt restructuring Interim Condensed Consolidated Statement of Changes in Equity (RMB thousand) | Indicator (RMB thousand) | January 1, 2025 (Restated) | June 30, 2025 | | :--- | :--- | :--- | | Total Equity Attributable to Owners of the Company | (12,659,291) | 4,117,119 | | Profit for the Period | 10,202,141 | 10,202,141 | | Currency Translation Differences | 505,968 | 505,968 | | Perpetual Securities Issued After Offshore Debt Restructuring | – | 1,038,891 | | Permanent Subordinated Guaranteed Capital Instruments Derecognized After Offshore Debt Restructuring | – | 4,440,418 | [Interim Condensed Consolidated Statement of Cash Flows](index=53&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) Oceanwide Group generated net cash from operating activities of RMB 1.599 billion and from investing activities of RMB 920 million in H1 2025, while net cash used in financing activities was RMB 2.427 billion Interim Condensed Consolidated Statement of Cash Flows (RMB thousand) | Indicator (RMB thousand) | H1 2025 | H1 2024 (Restated) | | :--- | :--- | :--- | | Net Cash From Operating Activities | 1,599,738 | 170,500 | | Net Cash From Investing Activities | 920,003 | 291,646 | | Net Cash Used In Financing Activities | (2,426,929) | (744,587) | | Cash and Cash Equivalents at End of Period | 1,996,240 | 1,708,972 | [Notes to the Interim Condensed Consolidated Financial Statements](index=54&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) [General Information](index=54&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB_%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) Oceanwide Group Holdings Limited and its subsidiaries primarily engage in investment holding, property development, and property investment in China, with its shares listed on the Hong Kong Stock Exchange - The Group's principal activities are investment holding, property development, and property investment in China[142](index=142&type=chunk) - The company's shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited[142](index=142&type=chunk) [Basis of Preparation and Prior Period Adjustments](index=54&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB_%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96%E5%8F%8A%E9%81%8E%E5%BE%80%E5%B9%B4%E5%BA%A6%E8%AA%BF%E6%95%B4) The interim condensed consolidated financial statements are prepared in accordance with HKAS 34 and Listing Rules, with the auditor issuing a disclaimer of opinion on the 2024 annual financial statements due to going concern uncertainties - The interim condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and the Listing Rules[143](index=143&type=chunk) - The auditor's report on the annual financial statements for the year ended December 31, 2024, contained a disclaimer of opinion[144](index=144&type=chunk) - Multiple material uncertainties exist regarding going concern, including current liabilities exceeding current assets by approximately **RMB 9.06 billion**, outstanding loans of approximately **RMB 14.03 billion**, outstanding onshore bonds of approximately **RMB 3.53 billion**, and approximately **RMB 11.97 billion** in borrowings that may be subject to accelerated repayment[129](index=129&type=chunk)[145](index=145&type=chunk) - Management has formulated plans and measures, including actively negotiating onshore bond repayment arrangements, the effectiveness of offshore debt restructuring, discussing renewal of borrowings with existing lenders, seeking new financing sources (e.g., asset disposals), resolving litigations, maintaining relationships with key contractors and suppliers, accelerating sales collection, and controlling administrative costs[148](index=148&type=chunk)[151](index=151&type=chunk) - Perpetual bonds issued in 2019 (including principal of **RMB 2.359 billion** and interest of **RMB 320 million**, totaling **RMB 2.679 billion**) have been reclassified from non-controlling interests to borrowings, resulting in a reduction in total equity at the beginning and end of 2024[152](index=152&type=chunk)[153](index=153&type=chunk)[154](index=154&type=chunk) [Accounting Policies](index=60&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB_%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The accounting policies applied are consistent with the 2024 annual financial statements, with minor amendments to HKAS 21 and HKFRS 1 adopted, which are not expected to have a significant impact - The accounting policies applied are consistent with those adopted in the annual financial statements for the year ended December 31, 2024, with only amendments to HKAS 21 and HKFRS 1 adopted[156](index=156&type=chunk) [Estimates](index=60&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB_%E4%BC%B0%E8%A8%88) The preparation of interim condensed consolidated financial statements requires management judgments, estimates, and assumptions that affect reported amounts, and actual results may differ from these estimates - The preparation of financial statements requires management to make judgments, estimates, and assumptions, and actual results may differ from these estimates[159](index=159&type=chunk) [Financial Risk Management and Financial Instruments](index=60&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB_%E8%B2%A1%E5%8B%99%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86%E5%8F%8A%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7) The Group is exposed to market risks (foreign exchange, interest rate), credit risk, and liquidity risk, with detailed disclosures on non-derivative financial liabilities' contractual undiscounted cash flows and fair value measurements - The Group is exposed to market risks (foreign exchange risk, fair value interest rate risk, and cash flow interest rate risk), credit risk, and liquidity risk[160](index=160&type=chunk) Non-Derivative Financial Liabilities Maturity (RMB thousand) | Non-Derivative Financial Liabilities (RMB thousand) | Less than 1 year | 1 to 2 years | 2 to 5 years | Over 5 years | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | Loans (June 30, 2025) | 46,031,463 | 13,529,339 | 7,554,944 | 13,910,771 | 81,026,517 | | Loans (December 31, 2024) | 70,306,885 | 14,673,401 | 14,308,218 | 6,577,802 | 105,866,306 | - Fair value valuation of Level 3 financial instruments uses discounted cash flow, comparable transaction methods, and option pricing models, with key assumptions including future growth rates, discount rates, and recent market transactions[169](index=169&type=chunk) - The relationship between unobservable input data and fair value is: higher discount rate leads to lower fair value; higher expected volatility leads to lower fair value[213](index=213&type=chunk) [Segment Information](index=64&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB_%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) Management segments the business into property development (by geography), property investment, property management, and other businesses, with significant operating losses across segments in H1 2025 - Operating segments include property development (Beijing, Bohai Rim, East China, South China, Central China, West China regions), property investment, property management, and all other segments[171](index=171&type=chunk) Segment Revenue (RMB thousand) | Segment Revenue (RMB thousand) | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Property Development (Total) | 3,295,820 | 10,299,804 | | Property Investment | 143,540 | 181,307 | | Property Management | 1,347,545 | 1,361,476 | | Other Segments | 1,416,270 | 1,470,764 | | **Total** | **6,203,069** | **13,313,451** | Segment Operating Profit / (Loss) (RMB thousand) | Segment Operating Profit / (Loss) (RMB thousand) | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Property Development (Total) | (6,829,415) | (419,992) | | Property Investment | 121,340 | 101,690 | | Property Management | (44,779) | 56,415 | | Other Segments | (8,425,358) | (255,523) | | **Total** | **(15,169,221)** | **(530,420)** | [Property, Plant and Equipment and Land Use Rights](index=68&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB_%E7%89%A9%E6%A5%AD%E3%80%81%E6%A9%9F%E5%99%A8%E5%8F%8A%E8%A8%AD%E5%82%99%E4%BB%A5%E5%8F%8A%E5%9C%9F%E5%9C%B0%E4%BD%BF%E7%94%A8%E6%AC%8A) As of June 30, 2025, the net book value of property, plant and equipment was RMB 2.855 billion and land use rights was RMB 107.48 million, with significant impairment provisions made during the period Property, Plant and Equipment and Land Use Rights Net Book Value (RMB thousand) | Indicator (RMB thousand) | Property, Plant and Equipment | Land Use Rights | | :--- | :--- | :--- | | Net Book Value as of Jan 1, 2025 | 3,324,732 | 179,062 | | Net Book Value as of June 30, 2025 | 2,855,021 | 107,484 | | Impairment Provision (H1 2025) | (324,594) | – | - As of June 30, 2025, approximately **RMB 2.105 billion** of property, plant and equipment and approximately **RMB 52.211 million** of land use rights were pledged as collateral for loans[177](index=177&type=chunk)[178](index=178&type=chunk) [Intangible Assets](index=68&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB_%E7%84%A1%E5%BD%A2%E8%B3%87%E7%94%A2) As of June 30, 2025, the net book value of intangible assets was RMB 278.37 million, with additions of RMB 652 thousand and amortization of RMB 31.949 million during the period Intangible Assets Net Book Value (RMB thousand) | Indicator (RMB thousand) | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Book Value at Beginning of Period | 309,670 | 400,164 | | Additions | 652 | – | | Amortization | (31,949) | (21,315) | | Net Book Value at End of Period | 278,373 | 378,849 | [Investment Properties](index=69&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB_%E6%8A%95%E8%B3%87%E7%89%A9%E6%A5%AD) As of June 30, 2025, investment properties had a net book value of RMB 13.279 billion, with additions and transfers, but also fair value losses recognized in profit or loss Investment Properties Net Book Value (RMB thousand) | Indicator (RMB thousand) | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Book Value at Beginning of Period | 13,204,011 | 15,857,341 | | Additions | 107,910 | 139 | | Fair Value Changes Recognized in Profit or Loss | (643,676) | (292,770) | | Net Book Value at End of Period | 13,279,388 | 13,521,123 | - As of June 30, 2025, approximately **RMB 12.843 billion** of investment properties were pledged as collateral for loans[183](index=183&type=chunk) - The valuation technique for completed properties in Ganzhou changed from income capitalization method to cost method due to market environment changes[183](index=183&type=chunk) [Interests in Joint Ventures](index=70&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB_%E6%96%BC%E5%90%88%E7%87%9F%E4%BC%81%E6%A5%AD%E4%B9%8B%E6%AC%8A%E7%9B%8A) As of June 30, 2025, interests in joint ventures had a net book value of RMB 11.900 billion, impacted by dividend payments and a share of losses from joint ventures Changes in Interests in Joint Ventures (RMB thousand) | Indicator (RMB thousand) | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Beginning of Period | 13,315,357 | 18,679,921 | | Dividends | (536,600) | – | | Share of Results and Other Comprehensive Income of Joint Ventures | (1,204,584) | (936,629) | | End of Period | 11,900,313 | 14,042,011 | - As of June 30, 2025, approximately **RMB 6.837 billion** of interests in joint ventures were pledged as collateral for loans[184](index=184&type=chunk) [Interests in Associates](index=71&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB_%E6%96%BC%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E4%B9%8B%E6%AC%8A%E7%9B%8A) As of June 30, 2025, interests in associates had a net book value of RMB 2.754 billion, affected by capital contributions, dividends, disposals, and a share of losses from associates Changes in Interests in Associates (RMB thousand) | Indicator (RMB thousand) | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Beginning of Period | 3,951,093 | 3,915,886 | | Disposals | (409,782) | – | | Share of Results and Other Comprehensive Income of Associates | (349,107) | (235,946) | | End of Period | 2,754,129 | 3,693,972 | - As of June 30, 2025, approximately **RMB 1.097 billion** of interests in associates were pledged as collateral for loans[186](index=186&type=chunk) [Financial Assets at Fair Value Through Other Comprehensive Income](index=71&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB_%E6%8C%89%E5%85%AC%E5%B9%B3%E5%80%BC%E8%A8%88%E5%85%A5%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E7%9A%84%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2) As of June 30, 2025, total financial assets at fair value through other comprehensive income were RMB 478.459 million, primarily comprising unlisted and listed securities Financial Assets at Fair Value Through Other Comprehensive Income (RMB thousand) | Indicator (RMB thousand) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Listed Securities | 51,059 | 26,329 | | Unlisted Securities | 427,400 | 667,568 | | **Total** | **478,459** | **693,897** | - As of June 30, 2025, approximately **RMB 97.934 million** of these financial assets were pledged as collateral for borrowings[187](index=187&type=chunk) [Financial Assets at Fair Value Through Profit or Loss](index=72&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB_%E6%8C%89%E5%85%AC%E5%B9%B3%E5%80%BC%E8%A8%88%E5%85%A5%E6%90%8D%E7%9B%8A%E7%9A%84%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2) As of June 30, 2025, total financial assets at fair value through profit or loss were RMB 2.699 billion, mainly consisting of fund and bond investments and derivative financial instruments Financial Assets at Fair Value Through Profit or Loss (RMB thousand) | Indicator (RMB thousand) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Fund and Bond Investments | 2,464,569 | 3,118,436 | | Derivative Financial Instruments | 176,994 | 268,995 | | **Total** | **2,698,937** | **3,716,194** | - As of June 30, 2025, approximately **RMB 1.279 billion** of these financial assets were pledged as collateral for loans[189](index=189&type=chunk) [Trade and Other Receivables and Prepayments](index=72&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB_%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E5%8F%8A%E9%A0%90%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade and other receivables and prepayments were RMB 59.475 billion, with significant impairment provisions for trade and other receivables Total Trade and Other Receivables and Prepayments (RMB thousand) | Indicator (RMB thousand) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade Receivables | 4,136,805 | 4,443,710 | | Other Receivables and Prepayments | 55,337,976 | 60,056,862 | | **Total** | **59,474,781** | **64,500,572** | - Impairment provision for trade receivables was **RMB 1.378 billion**, and for other receivables was **RMB 21.831 billion**[192](index=192&type=chunk)[201](index=201&type=chunk) - As of June 30, 2025, approximately **RMB 316 million** of trade receivables, **RMB 671 million** of entrusted loans to third parties, **RMB 2.628 billion** of amounts due from third parties, **RMB 2.959 billion** of amounts due from joint ventures, and **RMB 1.243 billion** of amounts due from associates were pledged as collateral for loans[193](index=193&type=chunk)[196](index=196&type=chunk)[197](index=197&type=chunk) [Share Capital](index=77&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB_%E8%82%A1%E6%9C%AC) As of June 30, 2025, the company's total issued ordinary shares were 11,084,626,745, with share capital increasing by RMB 665 million due to the conversion of mandatory convertible bonds Share Capital Overview (RMB thousand) | Indicator | January 1, 2025 | June 30, 2025 | | :--- | :--- | :--- | | Number of Ordinary Shares | 7,616,095,657 | 11,084,626,745 | | Share Capital (RMB thousand) | 27,329,232 | 27,994,122 | | Shares Issued Upon Conversion of Mandatory Convertible Bonds (shares) | – | 3,468,531,088 | [Equity Securities](index=77&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB_%E8%82%A1%E6%9C%AC%E8%AD%89%E5%88%B8) The perpetual subordinated guaranteed capital securities issued in 2017 were derecognized due to offshore debt restructuring, and new perpetual securities of approximately USD 1.21 billion were issued on March 27, 2025 - The perpetual subordinated guaranteed capital securities issued in 2017 by Oceanwide Real Estate Bao Cai III Limited were derecognized on **March 27, 2025**, due to offshore debt restructuring[204](index=204&type=chunk) - To facilitate offshore debt restructuring, the company issued new perpetual securities with an initial principal amount of approximately **USD 1.21 billion** on the same date[204](index=204&type=chunk) [Loans](index=78&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB_%E8%B2%B8%E6%AC%BE) As of June 30, 2025, total loans decreased significantly to RMB 66.997 billion due to offshore debt restructuring, which involved derecognizing existing debt and recognizing new debt instruments at fair value Total Loans (RMB thousand) | Indicator (RMB thousand) | June 30, 2025 | December 31, 2024 (Restated) | | :--- | :--- | :--- | | Non-current Loans | 25,321,163 | 32,437,489 | | Current Loans | 41,675,694 | 65,935,047 | | **Total Loans** | **66,996,857** | **98,372,536** | - Offshore debt restructuring resulted in the derecognition of approximately **USD 6.38 billion** of existing debt and the recognition of new debt instruments at fair value, generating an offshore debt restructuring gain of **RMB 31.76 billion**[206](index=206&type=chunk)[209](index=209&type=chunk)[212](index=212&type=chunk) - As of June 30, 2025, approximately **RMB 24.730 billion** of bank borrowings, **RMB 4.191 billion** of trust company loans, **RMB 4.109 billion** of asset-backed securities, **RMB 662 million** of non-controlling interest loans, **RMB 2.637 billion** of loans from associates and joint ventures, and **RMB 4.120 billion** of loans from third parties were pledged[214](index=214&type=chunk)[215](index=215&type=chunk) [Trade and Other Payables](index=83&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB_%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade and other payables were RMB 47.252 billion, with trade payables at RMB 11.578 billion and significant amounts owed to joint ventures Trade and Other Payables (RMB thousand) | Indicator (RMB thousand) | June 30, 2025 | December 31, 2024 (Restated) | | :--- | :--- | :--- | | Trade Payables | 11,578,474 | 13,340,695 | | Amounts Due to Joint Ventures | 8,596,449 | 7,950,594 | | Amounts Due to Associates | 715,047 | 1,009,299 | | **Total** | **47,252,194** | **50,923,231** | - Among trade payables, amounts overdue for more than 3 years totaled **RMB 3.875 billion**[217](index=217&type=chunk) [Derivative Financial Instruments](index=84&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB_%E8%A1%8D%E7%94%9F%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7) As of June 30, 2025, derivative financial liabilities amounted to RMB 570.788 million, primarily representing the derivative component of mandatory convertible bonds issued in the offshore debt restructuring Derivative Financial Instruments (RMB thousand) | Indicator (RMB thousand) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Derivative Component of Mandatory Convertible Bonds | 570,788 | – | - The derivative component of mandatory convertible bonds was recognized on the effective date of the offshore debt restructuring[218](index=218&type=chunk) [Provisions](index=84&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB_%E6%92%A5%E5%82%99) As of June 30, 2025, total provisions were RMB 9.490 billion, mainly comprising litigation provisions and financial guarantee provisions for related parties and third parties, with a significant increase in the latter Total Provisions (RMB thousand) | Indicator (RMB thousand) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Litigation Provisions | 1,008,701 | 1,252,282 | | Financial Guarantee Provisions for Related Parties and Third Parties | 8,481,045 | 3,776,047 | | **Total** | **9,489,746** | **5,028,329** | - Financial guarantee provisions for related parties and third parties increased by **RMB 4.705 billion** during the period[219](index=219&type=chunk) - Multiple parties have filed lawsuits against the Group for unpaid loans, outstanding construction, and daily operating payables, with litigation provisions of approximately **RMB 1.01 billion** recognized[220](index=220&type=chunk) [Other Losses — Net](index=85&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB_%E5%85%B6%E4%BB%96%E8%99%A7%E6%90%8D%20%E2%80%94%20%E6%B7%A8%E9%A1%8D) In H1 2025, net other losses amounted to RMB 3.326 billion, primarily due to fair value changes in financial assets/liabilities, exchange losses, litigation provisions, and impairment losses on property, plant and equipment and goodwill Other Losses Net (RMB thousand) | Indicator (RMB thousand) | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Fair Value Changes of Financial Assets and Liabilities at Fair Value Through Profit or Loss | (1,422,241) | (238,463) | | Exchange Losses | (363,368) | (56,491) | | Litigation Provisions | (422,183) | – | | Impairment Losses on Property, Plant and

[Company Business Structure](index=3&type=section&id=%E5%85%AC%E5%8F%B8%E6%A5%AD%E5%8B%99%E6%9E%B6%E6%A7%8B) The Group's core businesses encompass real estate development, commercial property operations, and other services across mainland China, Hong Kong, Macau, and London [Overview of Company Business Structure](index=3&type=section&id=%E5%85%AC%E5%8F%B8%E6%A5%AD%E5%8B%99%E6%A7%8B%E6%A6%82%E8%BF%B0) The Group's main businesses include real estate development, commercial property operations, and other businesses, covering 85 major cities in mainland China, as well as Hong Kong, Macau, and London - The company's businesses are primarily divided into real estate development, commercial property operations, and other businesses[4](index=4&type=chunk) - Real estate development business covers **85 major cities** in mainland China, including Beijing, Shanghai, Guangzhou, Shenzhen, as well as Hong Kong and Macau[4](index=4&type=chunk)[5](index=5&type=chunk) - Commercial property operations and other businesses also operate in mainland China, Hong Kong, Macau, and London[4](index=4&type=chunk) [Financial Highlights](index=4&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) This section presents key financial performance indicators, including sales, profit, equity, and gearing ratio, for the first half of 2025 [Key Financial Indicators](index=4&type=section&id=%E9%97%9C%E9%8D%B5%E8%B2%A1%E5%8B%99%E6%8C%87%E6%A8%99) As of the first half of 2025, the company's contracted property sales decreased year-on-year to RMB 120.15 billion, and profit attributable to shareholders fell to RMB 8.6 billion, yet equity attributable to shareholders continued to grow, and the net gearing ratio remained at a healthy level Key Financial Data 1H21-1H25 | Indicator | 1H21 (RMB billion) | 1H22 (RMB billion) | 1H23 (RMB billion) | 1H24 (RMB billion) | 1H25 (RMB billion) | | :--- | :--- | :--- | :--- | :--- | :--- | | Contracted Property Sales | 207.21 | 138.50 | 180.18 | 148.38 | 120.15 | | Equity Attributable to Company Shareholders | 328.05 | 352.81 | 363.89 | 378.54 | 386.62 | | Profit Attributable to Company Shareholders | 20.78 | 16.74 | 13.49 | 10.31 | 8.60 | | Net Gearing Ratio (%) | 32.5 | 39.0 | 35.8 | 38.7 | 28.4 | - Contracted property sales in the first half of 2025 were **RMB 120.15 billion**, a decrease from **RMB 148.38 billion** in the first half of 2024[8](index=8&type=chunk) - Profit attributable to company shareholders decreased from **RMB 10.31 billion** in the first half of 2024 to **RMB 8.60 billion** in the first half of 2025[12](index=12&type=chunk) - The net gearing ratio significantly decreased to **28.4%** in the first half of 2025, better than **38.7%** in the first half of 2024[14](index=14&type=chunk) [Board of Directors and Committees](index=5&type=section&id=%E8%91%A3%E4%BA%8B%E5%B1%80%E5%8F%8A%E5%A7%94%E5%93%A1%E6%9C%83) This section details the composition of the Board of Directors and its various committees, ensuring effective corporate governance [Board Members and Committee Composition](index=5&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E6%88%90%E5%93%A1%E8%88%87%E5%A7%94%E5%93%A1%E6%9C%83%E6%A7%8B%E6%88%90) The company's Board of Directors comprises executive, non-executive, and independent non-executive directors, supported by Audit and Risk Management, Remuneration, Nomination, and Corporate Governance Committees to ensure effective corporate governance - Executive Directors include Yan Jianguo (Chairman), Zhang Zhichao (CEO), and Guo Guanghui (Vice President)[16](index=16&type=chunk) - Non-executive Directors include Zhuang Yong (Vice Chairman), Zhao Wenhai (resigned on January 22, 2025), and Ma Yao (appointed on January 22, 2025)[16](index=16&type=chunk) - Independent Non-executive Directors are Li Minbin, Chan Ka Keung, and Chan Ching Har, who also serve as chairpersons or members of the Audit and Risk Management, Remuneration, Nomination, and Corporate Governance Committees[16](index=16&type=chunk) [Company Information](index=6&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) This section provides essential corporate information, including company details, listing status, and key financial calendar dates [Basic Company Information](index=6&type=section&id=%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E4%BF%A1%E6%81%AF) This section provides essential company details including registered office, contact information, company secretary, share registrar, investor relations, public relations contacts, independent auditor, and principal bankers - The registered office is located at 10th Floor, Three Pacific Place, 1 Queen's Road East, Hong Kong[18](index=18&type=chunk) - The Company Secretary is Lam Wai Chun, and the Share Registrar is Tricor Secretaries Limited[19](index=19&type=chunk) - The independent auditor is Ernst & Young, and principal bankers include Agricultural Bank of China, Bank of China, and Bank of Communications[20](index=20&type=chunk) [Listing and Financial Calendar](index=7&type=section&id=%E4%B8%8A%E5%B8%82%E8%88%87%E8%B2%A1%E5%8B%99%E6%97%A5%E7%A8%8B) The company's shares are listed on the Hong Kong Stock Exchange, with the financial calendar disclosing the 2025 interim results announcement, ex-dividend date, share transfer book closure, and dividend record date - The company's shares are listed on The Stock Exchange of Hong Kong Limited, with stock code **00688**[22](index=22&type=chunk)[23](index=23&type=chunk) 2025 Financial Calendar | Event | Date | | :--- | :--- | | Interim Results Announcement | August 27, 2025 | | Ex-dividend Date | September 16, 2025 | | Book Closure for Share Transfers | September 18, 2025 | | Interim Dividend Record Date | September 18, 2025 | | Despatch of Dividend Warrants | October 3, 2025 | [Chairman's Report](index=8&type=section&id=%E4%B8%BB%E5%B8%AD%E5%A0%B1%E5%91%8A%E6%9B%B8) The Chairman's report reviews the Group's operating performance, financial stability, investment strategies, and future outlook for the first half of 2025 [Operating Review for 1H 2025](index=8&type=section&id=2025%E5%B9%B4%E4%B8%8A%E5%8D%8A%E5%B9%B4%E7%B6%93%E7%87%9F%E5%9B%9E%E9%A1%A7) Despite a continued downturn in the real estate market, the Group achieved contracted property sales of **RMB 120.15 billion** in the first half of 2025, ranking second in the industry, with revenue of **RMB 83.22 billion**, profit attributable to shareholders of **RMB 8.6 billion**, and an announced interim dividend of **HK 25 cents** per share, while focusing on first-tier cities and launching the 'China Overseas Good House Living OS System' to enhance product competitiveness - In the first half of 2025, the Group's series of companies achieved contracted property sales of **RMB 120.15 billion**, ranking second in the industry by sales volume[26](index=26&type=chunk) Key Financial Data for 1H 2025 | Indicator | Amount (RMB) | | :--- | :--- | | Unaudited Revenue | 83.22 billion | | Profit Attributable to Company Shareholders | 8.6 billion | | Core Profit Attributable to Company Shareholders | 8.78 billion | | Interim Dividend | HK 25 cents per share | - The Group's strong focus on first-tier cities resulted in contracted sales of **RMB 55.64 billion** in Hong Kong and five cities (Beijing, Shanghai, Guangzhou, Shenzhen), accounting for **53.7%**, with Beijing contributing **RMB 30.45 billion**[26](index=26&type=chunk) - Launched the 'China Overseas Good House Living OS System', with initial projects achieving strong sales against market trends, delivering **42,000 units** of high-quality homes in the first half, maintaining industry benchmark customer satisfaction[27](index=27&type=chunk) - In commercial property operations, **four new commercial projects** commenced operations, increasing total gross floor area by **150,000 square meters**, generating commercial property revenue of **RMB 3.54 billion**[27](index=27&type=chunk) [Stable Financial Position and Investment Strategy](index=9&type=section&id=%E7%A9%A9%E5%81%A5%E7%9A%84%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%88%87%E6%8A%95%E8%B3%87%E7%AD%96%E7%95%A5) The Group maintained a stable financial position during market adjustments, with both asset-liability ratio and net gearing ratio at 'green-light' levels and financing costs in the industry's lowest range, while precisely investing in high-tier city quality assets, acquiring **17 land parcels** with an attributable land acquisition amount of **RMB 40.11 billion** in the first half Financial Stability Indicators for 1H 2025 | Indicator | Value | | :--- | :--- | | Asset-Liability Ratio | 53.7% | | Net Gearing Ratio | 28.4% | | Interest-bearing Debt Reduced from Year-End | RMB 14.12 billion | | Bank Deposits and Cash Held | RMB 108.96 billion | | Average Financing Cost | 2.9% | | Selling and Administrative Expenses as % of Revenue | 3.8% | - The Group is the only mainland real estate listed company to receive an **A- rating** from two of the three major international rating agencies: S&P Global, Moody's, and Fitch[29](index=29&type=chunk) - In the first half, **17 land parcels** were acquired in **10 mainland Chinese cities and Hong Kong**, with a total land acquisition amount of **RMB 40.37 billion** and attributable land acquisition amount of **RMB 40.11 billion**, of which **52.1%** was for first-tier cities and Hong Kong[29](index=29&type=chunk) [Future Outlook and Growth Drivers](index=9&type=section&id=%E6%9C%AA%E4%BE%86%E5%B1%95%E6%9C%9B%E8%88%87%E7%99%BC%E5%B1%95%E6%8E%A8%E5%8B%95%E5%8A%9B) Despite the ongoing real estate market downturn, marginal improvements in downward pressure are observed, with the Group anticipating 'policy drivers,' 'market drivers,' and 'internal stable high-quality development drivers' to collectively stabilize the market, while continuing to focus on first-tier cities, acquiring large integrated projects through urban renewal and open markets, and advancing commercial public REITs issuance to unlock commercial asset value - Three drivers are expected to stabilize the real estate market: policy drivers, market drivers, and the Group's continuous stable and high-quality development drivers[30](index=30&type=chunk) - Policy drivers: The State Council executive meeting emphasized surveying existing land supply and ongoing real estate projects, optimizing policies, stabilizing expectations, stimulating demand, optimizing supply, and mitigating risks[30](index=30&type=chunk) - Market drivers: China's GDP grew by **5.3%** year-on-year in the first half, per capita disposable income increased by **5.3%** year-on-year, and urban renewal and shantytown redevelopment will drive incremental demand[32](index=32&type=chunk) - Group drivers: healthy financials, abundant cash, excellent asset quality, strong focus on first-tier cities, acquiring large integrated projects through urban renewal and open markets, with projects like Beijing CITIC City and Shanghai Jianguo East Road achieving strong sales against market trends[33](index=33&type=chunk) - In the second half, the Group will launch multiple projects in first-tier cities, and the issuance of its first commercial public REITs is progressing orderly, expected to unlock commercial asset value[33](index=33&type=chunk) - The company will adhere to its core values of 'customer-centricity, quality assurance, value creation' and its business philosophy of 'good products, good services, good returns, good corporate citizen'[34](index=34&type=chunk) [Management Discussion and Analysis](index=12&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) This section provides a detailed analysis of the Group's overall performance, business segments, financial resources, and sustainability efforts for the first half of 2025 [Overall Performance](index=12&type=section&id=%E6%95%B4%E9%AB%94%E8%A1%A8%E7%8F%BE) In the first half of 2025, the Group's revenue was **RMB 83.22 billion**, operating profit **RMB 12.12 billion**, and gross profit margin **17.4%**, with profit attributable to company shareholders at **RMB 8.6 billion**, core profit attributable to company shareholders at **RMB 8.78 billion**, and basic earnings per share at **RMB 0.79** Overall Financial Performance for 1H 2025 | Indicator | Amount (RMB) | | :--- | :--- | | Revenue | 83.22 billion | | Operating Profit | 12.12 billion | | Gross Profit Margin | 17.4% | | Selling and Administrative Expenses as % of Revenue | 3.8% | | Profit Attributable to Company Shareholders | 8.6 billion | | Core Profit Attributable to Company Shareholders | 8.78 billion | | Basic Earnings Per Share | 0.79 yuan | [Real Estate Development Business](index=12&type=section&id=%E6%88%BF%E5%9C%B0%E7%94%A2%E9%96%8B%E7%99%BC%E6%A5%AD%E5%8B%99) In the first half of 2025, the Group's contracted property sales reached **RMB 120.15 billion** with a sales area of **5.12 million square meters**, primarily driven by the Northern region, while real estate development revenue was **RMB 77.96 billion**, joint ventures and associates contributed **RMB 1.26 billion** in net profit, total completed gross floor area was **4.45 million square meters**, and **17 new land parcels** were acquired for a total land premium of **RMB 40.37 billion** Contracted Property Sales and Area by Region for 1H 2025 | Region | Contracted Property Sales (RMB billion) | Proportion (%) | Sales Area (million sq.m.) | Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | Southern Region | 15.56 | 13.0 | 0.523 | 10.2 | | Eastern Region | 21.22 | 17.7 | 0.783 | 15.3 | | Central-Western Region | 10.15 | 8.4 | 0.605 | 11.8 | | Northern Region | 44.16 | 36.8 | 1.376 | 26.9 | | Hong Kong, Macau & Overseas Region | 1.83 | 1.5 | 0.017 | 0.3 | | Subtotal for Company and Subsidiaries | 92.92 | 77.4 | 3.304 | 64.5 | | Group's Joint Ventures and Associates (excluding COHL) | 10.62 | 8.8 | 0.344 | 6.7 | | China Overseas Grand Oceans Group Ltd. | 16.61 | 13.8 | 1.472 | 28.8 | | Total | 120.15 | 100 | 5.120 | 100 | - Real estate development business revenue for the first half of 2025 was **RMB 77.96 billion**[41](index=41&type=chunk) - Joint ventures and associates contributed **RMB 1.26 billion** in net profit[42](index=42&type=chunk) - Total completed gross floor area during the period was **4.45 million square meters**, primarily concentrated in the Southern Region (**1.614 million square meters**) and Northern Region (**1.151 million square meters**)[42](index=42&type=chunk)[43](index=43&type=chunk) - Acquired **17 new land parcels** with a total gross floor area of **2.58 million square meters** and attributable land premium of **RMB 40.11 billion**[45](index=45&type=chunk)[46](index=46&type=chunk) - As of June 30, 2025, the Group's series of companies had a total land reserve gross floor area of **40.47 million square meters**[48](index=48&type=chunk) [Commercial Property Operations Business](index=15&type=section&id=%E5%95%86%E6%A5%AD%E7%89%A9%E6%A5%AD%E9%81%8B%E7%87%9F%E6%A5%AD%E5%8B%99) The Group's commercial property operations generated **RMB 3.54 billion** in revenue in the first half, with office income at **RMB 1.7 billion** and shopping mall income at **RMB 1.17 billion**, while office new leases covered **510,000 square meters** with a **76.9%** renewal rate, mature shopping centers achieved **96.2%** occupancy and sales and footfall growth of **6.7%** and **11.0%** respectively, Beijing COLI Dajixiang Commercial Complex grandly opened with over **200,000 visits** on its first day, and the company maintained its leading position in industry ratings Commercial Property Revenue Composition for 1H 2025 | Revenue Source | Amount (RMB billion) | | :--- | :--- | | Total Commercial Property Revenue | 3.54 | | Office Revenue | 1.70 | | Shopping Mall Revenue | 1.17 | | Long-term Apartment Revenue | 0.16 | | Hotel and Other Commercial Property Revenue | 0.51 | - Office business new signed leasing gross floor area was **510,000 square meters**, with a renewal rate of **76.9%**[49](index=49&type=chunk) - Mature shopping mall projects operating for over three years achieved an occupancy rate of **96.2%**, with sales increasing by **6.7%** and footfall by **11.0%** year-on-year[50](index=50&type=chunk) - Beijing COLI Dajixiang Commercial Complex opened with an occupancy rate of **95.5%** and over **200,000 visits** on its first day[50](index=50&type=chunk) - Received industry recognition including Winshang.com's 'Annual Commercial Real Estate Leading Enterprise' and CRIC's 'China Real Estate Commercial Management Comprehensive Strength Top 10'[50](index=50&type=chunk) [Other Businesses](index=16&type=section&id=%E5%85%B6%E4%BB%96%E6%A5%AD%E5%8B%99) The Group's other businesses generated **RMB 3.55 billion** in internal and external revenue in the first half, with external revenue at **RMB 1.71 billion**, and external revenue from material procurement and supply chain management services increasing by **55.1%** year-on-year to **RMB 1.52 billion** Other Business Revenue for 1H 2025 | Indicator | Amount (RMB billion) | | :--- | :--- | | Other Businesses Internal and External Revenue | 3.55 | | Other Businesses External Revenue | 1.71 | | External Revenue from Material Procurement and Supply Chain Management Services | 1.52 (up 55.1% YoY) | [Liquidity, Financial Resources, and Debt Structure](index=16&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E3%80%81%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90%E5%8F%8A%E5%82%B5%E5%8B%99%E7%B5%90%E6%A7%8B) The Group maintained a prudent financial strategy, adhering to 'green-light' indicators, with net current assets of **RMB 386.26 billion**, a current ratio of **2.6 times**, and a net gearing ratio of **28.4%** as of June 30, 2025, holding **RMB 108.96 billion** in bank deposits and cash, an average financing cost of **2.9%**, and total borrowings of **RMB 227.45 billion** with **7.6%** due within one year, while securing **RMB 26.54 billion** in domestic and overseas financing and repaying **RMB 39.94 billion** in debt, increasing RMB borrowings to **84.8%** Liquidity and Financial Indicators for 1H 2025 | Indicator | Value | | :--- | :--- | | Net Current Assets | RMB 386.26 billion | | Current Ratio | 2.6 times | | Net Gearing Ratio | 28.4% | | Bank Deposits and Cash | RMB 108.96 billion | | Average Financing Cost | 2.9% | | Total Borrowings | RMB 227.45 billion | | Proportion of Borrowings Due within One Year | 7.6% | | Proportion of RMB Borrowings | 84.8% (up 2.5 percentage points from end-2024) | - In the first half, domestic and overseas financing amounted to **RMB 26.54 billion**, while **RMB 39.94 billion** in debt was repaid early or at maturity, leading to a continuous decrease in overall interest-bearing debt[54](index=54&type=chunk) - Sales proceeds were **RMB 89.26 billion**, and total operating cash inflow was **RMB 96.88 billion**, maintaining net operating cash inflow[55](index=55&type=chunk) Maturity Profile of Interest-Bearing Debt as of June 30, 2025 (RMB billion) | Term | Bank and Other Borrowings | Guaranteed Notes and Corporate Bonds | | :--- | :--- | :--- | | Within one year | 13.90 | 3.50 | | One to two years | 17.79 | 8.32 | | Two to five years | 51.76 | 13.64 | | Five to ten years | 33.71 | 5.60 | | Over ten years | 66.72 | 12.51 | Distribution of Interest-Bearing Debt by Currency as of June 30, 2025 | Currency Type | Proportion (%) | | :--- | :--- | | RMB Bank and Other Borrowings | 65.3 | | RMB Guaranteed Notes and Corporate Bonds | 19.5 | | USD Guaranteed Notes | 10.8 | | HKD Bank Borrowings | 4.4 | [Contingent Liabilities](index=19&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group provided guarantees of **RMB 25.76 billion** for property buyers' bank mortgage loans and counter-indemnity undertakings of **RMB 2.25 billion** for construction contract guarantees, in addition to credit facility guarantees for associates, joint ventures, and other entities - Guarantees for property buyers' bank mortgage repayments amounted to **RMB 25.76 billion**[62](index=62&type=chunk) - Counter-indemnity undertakings for guarantees on certain construction contracts amounted to **RMB 2.25 billion**[62](index=62&type=chunk) - Guarantees provided to banks for utilized credit facilities of associates, joint ventures, and other entities amounted to **RMB 0.01 billion**, **RMB 8.32 billion**, and **RMB 0.27 billion**, respectively[62](index=62&type=chunk) [Pledged Assets](index=19&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group pledged certain assets with a carrying value of **RMB 111.32 billion** as collateral for its bank loans - As of June 30, 2025, the Group pledged assets with a carrying value of **RMB 111.32 billion** as collateral for bank loans[64](index=64&type=chunk) [Sustainable Development](index=19&type=section&id=%E5%8F%AF%E6%8C%81%E7%BA%8C%E7%99%BC%E5%B1%95) In the first half of 2025, the Group continuously improved its sustainable development performance, achieving multiple international ESG rating upgrades, including an **MSCI ESG rating of A**, ranking first in mainland real estate in S&P Global Corporate Sustainability Assessment, and first globally in LSEG's ESG score, while publishing the industry's first 'Climate Change White Paper,' promoting low-carbon retrofits and sustainable supply chains, and leading high-quality development through the 'China Overseas Good House Living OS System,' alongside optimizing human resource management and supporting rural revitalization - MSCI ESG rating upgraded from BBB to **A**, ranked first in mainland real estate in S&P Global Corporate Sustainability Assessment, and first-time inclusion in the 'S&P Global 2025 Sustainability Yearbook'[67](index=67&type=chunk) - Ranked **first globally** with a score of **88** in the London Stock Exchange Group (LSEG) ESG assessment[67](index=67&type=chunk) - First-time recipient of Extel's (formerly Institutional Investor) 'Most Honored Company' award in the Asian real estate sector for the 2025 Best Management Team rankings[67](index=67&type=chunk) - Published the industry's first 'Climate Change White Paper' and was the first to obtain third-party certification ISO 14064–1 for greenhouse gas emissions[68](index=68&type=chunk) - Promoted low-carbon retrofits for investment properties, built a sustainable supply chain, and launched the 'China Overseas Good House Living OS System'[68](index=68&type=chunk) - As of June 30, 2025, there were **690 green projects** with a total certified area exceeding **110 million square meters**[68](index=68&type=chunk) - Formulated an executive compensation plan linked to ESG performance and prepared to conduct human rights due diligence[69](index=69&type=chunk) - Supported rural revitalization in three counties in Gansu, with cumulative consumption assistance investment and sales driven amounting to **RMB 30 million**[69](index=69&type=chunk) - Customer satisfaction score of **90** in the first half of 2025, with **42,000 units** of high-quality residential properties delivered, achieving a perfect delivery rate of **40%**[74](index=74&type=chunk) - Revenue from green building or high-energy efficiency certified projects in the first half of 2025 was approximately **RMB 74.9 billion** and **RMB 0.273 billion** respectively, with **17 new green building certified projects** added, totaling **690**[74](index=74&type=chunk) - Affordable housing under construction covered **136,000 square meters**, newly completed area was **62,000 square meters**, and cumulative completed affordable housing area reached **14.37 million square meters**[74](index=74&type=chunk) - Employed **3,232 staff**, with an average of **45 training hours** per employee, maintaining **100%** coverage for employee health checks and supplementary medical insurance plans[76](index=76&type=chunk) [Condensed Consolidated Statement of Profit or Loss](index=25&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%94%B6%E7%9B%8A%E8%A1%A8) This statement presents the Group's revenue, profit, and earnings per share for the six months ended June 30, 2025, highlighting key financial changes [Condensed Consolidated Profit or Loss for 1H 2025](index=25&type=section&id=2025%E5%B9%B4%E4%B8%8A%E5%8D%8A%E5%B9%B4%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%94%B6%E7%9B%8A) For the six months ended June 30, 2025, the Group's revenue was **RMB 83.22 billion**, a year-on-year decrease of **4.27%**, operating profit was **RMB 12.12 billion**, down **24.51%** year-on-year, profit attributable to company shareholders was **RMB 8.6 billion**, a **16.62%** year-on-year decrease, and basic earnings per share was **RMB 0.79**, down **15.96%** year-on-year Key Data from Condensed Consolidated Statement of Profit or Loss (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 83,219,084 | 86,935,427 | -4.27 | | Cost of Sales | (68,759,238) | (67,757,556) | 1.48 | | Gross Profit | 14,459,846 | 19,177,871 | -24.50 | | Operating Profit | 12,123,904 | 16,058,509 | -24.51 | | Profit Before Tax | 12,998,405 | 16,183,761 | -19.68 | | Profit for the Period | 9,529,612 | 11,526,806 | -17.33 | | Profit Attributable to Company Shareholders | 8,599,034 | 10,313,630 | -16.62 | | Basic Earnings Per Share (RMB) | 0.79 | 0.94 | -15.96 | - Net fair value change of investment properties increased from **RMB 12.33 million** in 2024 to **RMB 66.12 million** in 2025[77](index=77&type=chunk) - Share of profits and losses of associates and joint ventures increased from **RMB 618.39 million** in 2024 to **RMB 1.257 billion** in 2025, a growth of **103.25%**[77](index=77&type=chunk) [Condensed Consolidated Statement of Comprehensive Income](index=26&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) This statement outlines the Group's comprehensive income for the six months ended June 30, 2025, including profit and other comprehensive income components [Condensed Consolidated Comprehensive Income for 1H 2025](index=26&type=section&id=2025%E5%B9%B4%E4%B8%8A%E5%8D%8A%E5%B9%B4%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A) For the six months ended June 30, 2025, the Group's total comprehensive income was **RMB 9.93 billion**, a year-on-year decrease of **10.45%**, with exchange differences on translation of financial statements of subsidiaries and associates turning from negative to positive, positively impacting comprehensive income Key Data from Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Profit for the Period | 9,529,612 | 11,526,806 | -17.33 | | Exchange differences on translation of financial statements of subsidiaries | 271,570 | (343,407) | Turned positive | | Exchange differences on translation of financial statements of associates | 128,997 | (94,984) | Turned positive | | Other comprehensive income for the period | 400,567 | (438,391) | Turned positive | | Total comprehensive income for the period | 9,930,179 | 11,088,415 | -10.45 | | Total comprehensive income attributable to company shareholders | 8,996,178 | 9,870,592 | -8.86 | | Total comprehensive income attributable to non-controlling interests | 934,001 | 1,217,823 | -23.29 | - Exchange differences on translation of financial statements of subsidiaries turned from a negative **RMB 343.41 million** in the first half of 2024 to a positive **RMB 271.57 million** in the first half of 2025[79](index=79&type=chunk) - Exchange differences on translation of financial statements of associates turned from a negative **RMB 94.98 million** in the first half of 2024 to a positive **RMB 129.00 million** in the first half of 2025[79](index=79&type=chunk) [Condensed Consolidated Statement of Financial Position](index=27&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) This statement details the Group's assets, liabilities, and equity as of June 30, 2025, reflecting its financial position [Condensed Consolidated Financial Position for 1H 2025](index=27&type=section&id=2025%E5%B9%B4%E4%B8%8A%E5%8D%8A%E5%B9%B4%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81) As of June 30, 2025, the Group's total assets less current liabilities were **RMB 656.447 billion**, a **2.03%** increase from end-2024, with equity attributable to company shareholders rising to **RMB 386.619 billion**, and net current assets growing to **RMB 386.255 billion**, though bank balances and cash decreased Key Data from Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 270,191,923 | 269,450,426 | 0.27 | | Current assets | 631,364,967 | 639,183,955 | -1.22 | | Current liabilities | 245,109,517 | 265,231,620 | -7.59 | | Net current assets | 386,255,450 | 373,952,335 | 3.29 | | Total assets less current liabilities | 656,447,373 | 643,402,761 | 2.03 | | Equity attributable to company shareholders | 386,619,202 | 380,610,977 | 1.58 | | Total equity | 417,744,826 | 401,829,998 | 3.96 | | Non-current liabilities | 238,702,547 | 241,572,763 | -1.19 | - Investment properties increased from **RMB 208.40 billion** at end-2024 to **RMB 210.31 billion** as of June 30, 2025[80](index=80&type=chunk) - Bank balances and cash decreased from **RMB 124.17 billion** at end-2024 to **RMB 108.96 billion** as of June 30, 2025[80](index=80&type=chunk) - Pre-sale proceeds remained stable at approximately **RMB 132.44 billion**[83](index=83&type=chunk) - Bank and other borrowings due within one year decreased from **RMB 16.63 billion** at end-2024 to **RMB 13.90 billion** as of June 30, 2025[83](index=83&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=29&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) This statement illustrates the changes in the Group's equity attributable to shareholders and non-controlling interests for the six months ended June 30, 2025 [Condensed Consolidated Changes in Equity for 1H 2025](index=29&type=section&id=2025%E5%B9%B4%E4%B8%8A%E5%8D%8A%E5%B9%B4%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95) For the six months ended June 30, 2025, total equity attributable to company shareholders increased to **RMB 386.619 billion**, with profit for the period at **RMB 8.599 billion** and non-controlling shareholders' capital contributions of **RMB 9.65 billion** significantly increasing non-controlling interests Key Data from Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Total attributable to company shareholders at beginning of period | 380,610,977 | 373,017,828 | | Profit for the period | 8,599,034 | 10,313,630 | | Total comprehensive income for the period | 8,996,178 | 9,870,592 | | Final dividend for 2024 | (2,987,953) | (4,536,107) | | Capital contributions from non-controlling shareholders | 9,650,000 | 2,462,336 | | Total attributable to company shareholders at end of period | 386,619,202 | 378,539,943 | | Non-controlling interests at end of period | 31,125,624 | 22,550,364 | | Total equity at end of period | 417,744,826 | 401,090,307 | - Capital contributions from non-controlling shareholders significantly increased from **RMB 2.462 billion** in the first half of 2024 to **RMB 9.65 billion** in the first half of 2025[86](index=86&type=chunk) - Exchange differences on translation of financial statements of subsidiaries and associates were both positive in the first half of 2025, positively impacting equity[86](index=86&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=31&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) This statement presents the Group's cash flows from operating, investing, and financing activities for the six months ended June 30, 2025 [Condensed Consolidated Cash Flows for 1H 2025](index=31&type=section&id=2025%E5%B9%B4%E4%B8%8A%E5%8D%8A%E5%B9%B4%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F) For the six months ended June 30, 2025, net cash flow from operating activities was **RMB 1.065 billion**, a significant year-on-year decrease, net cash flow used in investing activities was **RMB 1.779 billion**, and net cash flow used in financing activities was **RMB 14.294 billion**, resulting in a net decrease in cash and cash equivalents of **RMB 15.009 billion** at period-end Key Data from Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Activity Type | 2025 (RMB thousand) | 2024 (RMB thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net cash flow from operating activities | 1,064,890 | 3,451,509 | -69.15 | | Net cash flow used in investing activities | (1,779,460) | (3,356,943) | -47.00 | | Net cash flow used in financing activities | (14,294,402) | (5,482,522) | 160.72 | | Net decrease in cash and cash equivalents | (15,008,972) | (5,387,956) | 178.57 | | Cash and cash equivalents at end of period | 108,774,461 | 100,017,486 | 8.76 | - Net cash flow from operating activities decreased from **RMB 3.452 billion** in the first half of 2024 to **RMB 1.065 billion** in the first half of 2025, primarily due to an increase in properties and other inventories[87](index=87&type=chunk) - Net cash flow used in financing activities significantly increased, mainly due to higher repayments of bank and other borrowings, and redemption of guaranteed notes and corporate bonds[89](index=89&type=chunk) - Bank balances and cash at period-end were **RMB 108.957 billion**, including **RMB 24.37 billion** from regulated property pre-sale proceeds[89](index=89&type=chunk)[55](index=55&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=33&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section provides detailed notes to the condensed consolidated financial statements, covering general information, accounting policies, risk management, and specific financial items [1. General Information](index=33&type=section&id=1.%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) The Company is a Hong Kong-registered listed company, with China State Construction Engineering Corporation Limited as its ultimate holding company, primarily engaged in real estate development, commercial property operations, and other businesses across Hong Kong, Macau, and various major cities in mainland China - The Company is a public listed company incorporated in Hong Kong, with its shares listed on The Stock Exchange of Hong Kong Limited[90](index=90&type=chunk) - The ultimate holding company is China State Construction Engineering Corporation Limited, whose principal shareholder is the Chinese government[90](index=90&type=chunk) - The Group is principally engaged in real estate development, commercial property operations, and other businesses in locations including Hong Kong, Macau, Beijing, Shanghai, Guangzhou, and Shenzhen[90](index=90&type=chunk) [2. Basis of Preparation](index=34&type=section&id=2.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) These condensed consolidated financial statements are prepared in accordance with Appendix D2 of the Hong Kong Listing Rules and Hong Kong Accounting Standard 34 'Interim Financial Reporting,' presented on a historical cost basis, except for investment properties and financial assets at fair value through profit or loss, with RMB as the presentation currency - These condensed consolidated financial statements are prepared in accordance with Appendix D2 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 'Interim Financial Reporting'[91](index=91&type=chunk) - The statements are prepared on a historical cost basis, except for investment properties and financial assets at fair value through profit or loss, which are measured at fair value[91](index=91&type=chunk) - The presentation currency is Renminbi, which is also the functional currency of the Company[91](index=91&type=chunk) [3. Application of New and Revised Hong Kong Financial Reporting Standards](index=35&type=section&id=3.%20%E6%87%89%E7%94%A8%E6%96%B0%E7%B7%A8%E8%A3%BD%E5%8F%8A%E7%B6%93%E4%BF%AE%E8%A8%82%E9%A6%99%E6%B8%AF%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%BA%96%E5%89%87) During the period, the Group first applied HKAS 21 (Amendment) 'Lack of Exchangeability,' which had no significant impact on operating results or financial position, and has begun assessing the impact of other issued but not yet effective HKFRSs and amendments, which are not expected to have a material effect - First-time application of HKAS 21 (Amendment) 'Lack of Exchangeability' during the period had no significant impact[92](index=92&type=chunk) - Assessment of other issued but not yet effective HKFRSs and amendments has commenced, and they are not expected to have a material impact on operating results and financial position[93](index=93&type=chunk) [4. Financial Risk Management](index=36&type=section&id=4.%20%E9%87%91%E8%9E%8D%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86) The Group is exposed to financial risks from interest rates, foreign currency, credit, liquidity, and fair value, with no significant changes in risk management departments, policies, and procedures since year-end, and guaranteed notes and corporate bonds measured at market prices are classified as Level 1 - The Group is exposed to financial risks arising from interest rates, foreign currency, credit, liquidity, and fair value[95](index=95&type=chunk) - There have been no significant changes in the risk management department, policies, and procedures since the end of last year[96](index=96&type=chunk) - The fair value of guaranteed notes and corporate bonds is measured at market prices and classified as Level 1 within the three-level fair value hierarchy[100](index=100&type=chunk) [5. Estimates](index=37&type=section&id=5.%20%E4%BC%B0%E8%A8%88) In preparing the condensed consolidated financial statements, management makes judgments, estimates, and assumptions regarding the application of accounting policies and the reported amounts of assets, liabilities, income, and expenses, with the primary sources of estimation uncertainty remaining consistent with the 2024 annual consolidated financial statements - Management makes judgments, estimates, and assumptions in preparing the financial statements, and actual results may differ[101](index=101&type=chunk) - The key sources of significant judgments and estimation uncertainty are the same as those in the 2024 annual consolidated financial statements[101](index=101&type=chunk) [6. Revenue and Results](index=38&type=section&id=6.%20%E6%94%B6%E5%85%A5%E5%8F%8A%E6%A5%AD%E7%B8%BE) The Group's reportable segments are real estate development, commercial property operations, and other businesses, with real estate development revenue of **RMB 77.96 billion**, commercial property operations revenue of **RMB 3.54 billion**, and other businesses external revenue of **RMB 1.71 billion** in the first half of 2025, contributing to a total segment profit of **RMB 12.705 billion** - The Group's reportable segments include real estate development (property development and sales), commercial property operations (property leasing, hotel, and other commercial property operations), and other businesses (material procurement and supply chain management services, construction and planning design consulting services, and others)[102](index=102&type=chunk) Segment Revenue and Results for 1H 2025 | Segment | Segment Revenue from External Customers (RMB thousand) | Segment Profit (RMB thousand) | | :--- | :--- | :--- | | Real Estate Development Business | 77,962,227 | 10,667,202 | | Commercial Property Operations Business | 3,542,076 | 1,982,643 | | Other Businesses | 1,714,781 | 54,987 | | Total | 83,219,084 | 12,704,832 | - Reported segment profit for the first half of 2025 was **RMB 12.705 billion**, with consolidated profit before tax at **RMB 12.998 billion**[106](index=106&type=chunk) [7. Net Other Income, Gains and Losses](index=41&type=section&id=7.%20%E6%B7%A8%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E3%80%81%E6%94%B6%E7%9B%8A%E5%8F%8A%E虧%E6%90%8D) For the six months ended June 30, 2025, the Group's net other income, gains, and losses significantly increased to **RMB 0.794 billion** from **RMB 0.253 billion** in the prior-year period, primarily driven by bank deposit interest income, net foreign exchange gains, and gains from disposal of subsidiaries Net Other Income, Gains and Losses (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Total interest income | 626,777 | 881,361 | | Net foreign exchange gains/(losses) | 135,764 | (353,710) | | Impairment provision for properties held for sale | (305,733) | (456,259) | | Gain on disposal of a subsidiary | 261,641 | – | | Others | 75,364 | 181,720 | | Total | 793,813 | 253,112 | - Net foreign exchange gains turned from a loss of **RMB 353.71 million** in the first half of 2024 to a gain of **RMB 135.76 million** in the first half of 2025[107](index=107&type=chunk) - A gain on disposal of a subsidiary of **RMB 261.64 million** was recognized in the first half of 2025[107](index=107&type=chunk) [8. Finance Costs](index=41&type=section&id=8.%20%E8%B2%A1%E5%8B%99%E8%B2%BB%E7%94%A8) For the six months ended June 30, 2025, the Group's finance costs decreased to **RMB 0.382 billion** from **RMB 0.493 billion** in the prior-year period, with total finance costs at **RMB 3.658 billion**, of which **RMB 3.275 billion** was capitalized Finance Costs (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest on bank and other borrowings, guaranteed notes and corporate bonds | 3,546,080 | 4,723,007 | | Interest on amounts payable to joint ventures and non-controlling shareholders | 17,938 | 49,496 | | Interest on lease liabilities and other finance costs | 93,616 | 97,847 | | Total finance costs | 3,657,634 | 4,870,350 | | Less: Amount capitalized | (3,275,259) | (4,377,217) | | Net finance costs | 382,375 | 493,133 | - Interest expense on bank and other borrowings, guaranteed notes, and corporate bonds decreased by approximately **24.89%** year-on-year[108](index=108&type=chunk) - The proportion of capitalized amount to total finance costs was approximately **89.55%** in the first half of 2025, indicating that most interest expenses were capitalized[108](index=108&type=chunk) [9. Income Tax Expense](index=42&type=section&id=9.%20%E6%89%80%E5%BE%97%E7%A8%85%E8%B2%BB%E7%94%A8) For the six months ended June 30, 2025, the Group's income tax expense decreased to **RMB 3.469 billion** from **RMB 4.657 billion** in the prior-year period, with major taxes including PRC corporate income tax, PRC land appreciation tax, PRC withholding income tax, Hong Kong profits tax, and Macau income tax, and the Group has applied the mandatory exemption for deferred tax assets and liabilities related to Pillar Two income tax, expecting no significant impact Income Tax Expense (For the six months ended June 30) | Tax Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | PRC corporate income tax | 2,793,990 | 3,002,672 | | PRC land appreciation tax | 260,677 | 893,831 | | PRC withholding income tax | 56,465 | 31,758 | | Hong Kong profits tax | 14,597 | 18,453 | | Macau income tax | 2,521 | 2,406 | | Others | 12,176 | 14,504 | | Total current tax | 3,140,426 | 3,963,624 | | Deferred tax | 328,367 | 693,331 | | Total | 3,468,793 | 4,656,955 | - PRC land appreciation tax expense significantly decreased by approximately **70.84%** year-on-year[109](index=109&type=chunk) - The Group has applied the mandatory exemption for deferred tax assets and liabilities related to Pillar Two income tax and does not expect to face significant Pillar Two income tax impacts[113](index=113&type=chunk) [10. Profit for the Period](index=44&type=section&id=10.%20%E6%9C%AC%E6%9C%9F%E9%96%93%E6%BA%A2%E5%88%A9) For the six months ended June 30, 2025, profit for the period was after deducting depreciation of property, plant, and equipment of **RMB 0.229 billion**, cost of properties and other inventories recognized as expense of **RMB 66.527 billion**, and staff costs of **RMB 1.022 billion** Items Deducted from Profit for the Period (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 229,280 | 240,777 | | Cost of properties and other inventories recognized as expense | 66,527,440 | 65,743,213 | | Staff costs (including directors' benefits and interests) | 1,021,805 | 1,245,554 | - Staff costs decreased by approximately **18.09%** year-on-year[114](index=114&type=chunk) [11. Earnings Per Share](index=44&type=section&id=11.%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) For the six months ended June 30, 2025, basic and diluted earnings per share were **RMB 0.79**, a decrease from **RMB 0.94** in the prior-year period, calculated based on profit attributable to company shareholders of **RMB 8.599 billion** and a weighted average of **10.945 billion** ordinary shares outstanding Earnings Per Share (For the six months ended June 30) | Indicator | 2025 (RMB) | 2024 (RMB) | | :--- | :--- | :--- | | Basic and diluted earnings per share | 0.79 | 0.94 | - Basic and diluted earnings per share are calculated based on profit attributable to company shareholders of **RMB 8.599 billion** (2024: **RMB 10.314 billion**)[115](index=115&type=chunk) - The weighted average number of ordinary shares outstanding during the period was **10.945 billion** shares, consistent with the prior-year period[115](index=115&type=chunk) [12. Dividends](index=45&type=section&id=12.%20%E8%82%A1%E6%81%AF) The Board of Directors declared an interim dividend of **HK 25 cents** per share for the six months ended June 30, 2025, amounting to approximately **RMB 2.517 billion**, while the 2024 final dividend of **HK 30 cents** per share was recognized during the period Dividends Recognized During the Period (For the six months ended June 30) | Dividend Type | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Final dividend for 2024 (HK 30 cents per share) | 2,987,953 | – | | Final dividend for 2023 (HK 45 cents per share) | – | 4,536,107 | - The Board of Directors declared an interim dividend of **HK 25 cents** per share (2024: **HK 30 cents** per share) for the six months ended June 30, 2025, amounting to approximately **RMB 2.517 billion**[116](index=116&type=chunk) [13. Investment Properties](index=45&type=section&id=13.%20%E6%8A%95%E8%B3%87%E7%89%A9%E6%A5%AD) For the six months ended June 30, 2025, the Group added **RMB 0.885 billion** in investment properties, with a net fair value change of **RMB 66.12 million**, while total carrying value of investment properties sold and derecognized was **RMB 2.005 billion**, and **RMB 2.789 billion** of properties held for sale were transferred to investment properties Movements in Investment Properties (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Additions to investment properties | 885,472 | 1,381,262 | | Net fair value change of investment properties | 66,120 | 12,330 | | Total carrying value of investment properties sold to third parties | 830,677 | 460,601 | | Total carrying value of investment properties derecognized due to disposal of a subsidiary | 1,274,724 | – | | Total carrying value of properties held for sale transferred to investment properties | 2,788,772 | – | - Net fair value change of investment properties significantly increased by approximately **436.25%** year-on-year[117](index=117&type=chunk) - The fair value measurements for the Group's investment properties are all classified as Level 3 within the three-level fair value hierarchy[119](index=119&type=chunk) [14. Trade and Other Receivables](index=46&type=section&id=14.%20%E8%B2%A3%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE) As of June 30, 2025, the Group's total trade and other receivables significantly increased to **RMB 7.825 billion** from **RMB 3.406 billion** at end-2024, with a notable rise in receivables aged 0-30 days, and management considers the expected credit risk of receivables to be very low Ageing Analysis of Trade Receivables (As of reporting period end) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 – 30 days | 3,884,021 | 424,195 | | 31 – 90 days | 140,524 | 262,063 | | Over 90 days | 1,702,660 | 903,910 | | Total trade receivables | 5,727,205 | 1,590,168 | | Other receivables – current portion | 2,097,376 | 1,815,902 | | Total | 7,824,581 | 3,406,070 | - Trade receivables aged 0-30 days increased from **RMB 0.424 billion** at end-2024 to **RMB 3.884 billion** as of June 30, 2025[121](index=121&type=chunk) - Management considers the expected credit risk of trade receivables to be very low, with limited concentration of credit risk[122](index=122&type=chunk) [15. Trade and Other Payables](index=47&type=section&id=15.%20%E8%B2%A3%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE) As of June 30, 2025, the Group's total trade and other payables decreased to **RMB 52.374 billion** from **RMB 55.601 billion** at end-2024, with a decrease in total trade payables but an increase in other payables Ageing Analysis of Trade Payables (As of reporting period end) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 – 30 days | 11,298,797 | 12,341,117 | | 31 – 90 days | 3,101,895 | 3,715,087 | | Over 90 days | 23,791,709 | 25,790,833 | | Total trade payables | 38,192,401 | 41,847,037 | | Other payables | 8,819,024 | 7,657,954 | | Retention money payable | 5,362,181 | 6,095,740 | | Total | 52,373,606 | 55,600,731 | - Total trade payables decreased from **RMB 41.847 billion** at end-2024 to **RMB 38.192 billion** as of June 30, 2025[123](index=123&type=chunk) - Other payables increased from **RMB 7.658 billion** at end-2024 to **RMB 8.819 billion** as of June 30, 2025[123](index=123&type=chunk) [16. Guaranteed Notes and Corporate Bonds](index=48&type=section&id=16.%20%E6%93%94%E4%BF%9D%E7%A5%A8%E6%93%9A%E5%8F%8A%E5%85%AC%E5%8F%B8%E5%82%B5%E5%88%B8) For the six months ended June 30, 2025, the Group issued low-interest guaranteed notes and corporate bonds with a total principal of **RMB 3.5 billion** at annual interest rates ranging from **1.80% to 2.38%**, while fully redeeming guaranteed notes and corporate bonds with a total redemption value of approximately **RMB 9.464 billion**, including both USD and RMB denominated bonds Guaranteed Notes and Corporate Bonds Issued During the Period | Issue Date | Principal (thousand) | Annual Interest Rate | Maturity Date | Carrying Value (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | April 14, 2025 | RMB 500,000 | 1.90% | April 14, 2030 | 500,000 | | April 14, 2025 | RMB 1,500,000 | 2.38% | April 14, 2035 | 1,500,000 | | April 29, 2025 | RMB 1,000,000 | 1.80% | April 29, 2030 | 1,000,000 | | April 29, 2025 | RMB 500,000 | 2.37% | April 29, 2035 | 500,000 | Guaranteed Notes and Corporate Bonds Fully Redeemed During the Period | Issue Date | Principal (thousand) | Annual Interest Rate | Redemption Date | Redemption Value (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | March 2, 2020 | USD 300,000 | 2.375% | March 2, 2025 | 2,163,583 | | January 14, 2022 | RMB 1,800,000 | 2.88% | January 14, 2025 | 1,800,000 | | April 7, 2022 | RMB 2,000,000 | 3.05% | April 7, 2025 | 2,000,000 | | May 10, 2022 | RMB 1,500,000 | 2.75% | May 12, 2025 | 1,500,000 | | May 27, 2022 | RMB 2,000,000 | 2.63% | May 27, 2025 | 2,000,000 | - The lower interest rates of bonds issued during the period help optimize financing costs[124](index=124&type=chunk) [17. Share Capital](index=48&type=section&id=17.%20%E8%82%A1%E6%9C%AC) As of June 30, 2025, the Company's issued and fully paid share capital was **RMB 74.035 billion**, with **10.945 billion** shares outstanding, consistent with end-2024, and while the Company has a share option scheme, no outstanding share options existed under the scheme as of June 30, 2025 Issued and Fully Paid Share Capital (As of reporting period end) | Indicator | June 30, 2025 | January 1, 2024 | | :--- | :--- | :--- | | Number of shares (thousand shares) | 10,944,884 | 10,944,884 | | Share capital (RMB thousand) | 74,035,443 | 74,035,443 | - The Company has a share option scheme designed to attract and retain high-caliber employees and promote the Group's long-term financial success[127](index=127&type=chunk) - As of January 1, 2025, and June 30, 2025, there were no outstanding share options under the Company's share option scheme[131](index=131&type=chunk) [18. Gain on Disposal of a Subsidiary](index=52&type=section&id=18.%20%E5%87%BA%E5%94%AE%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E6%94%B6%E7%9B%8A) On February 21, 2025, the Group disposed of its **100%** interest in Great Fortune Property Limited to a third party for a total consideration of **GBP 175 million** (equivalent to **RMB 1.602 billion**), recognizing a gain on disposal of **RMB 0.262 billion** - On February 21, 2025, the Group disposed of its **100%** interest in Great Fortune Property Limited for a total consideration of **GBP 175 million** (equivalent to **RMB 1.602 billion**)[134](index=134&type=chunk) - A gain on disposal of a subsidiary of **RMB 261.64 million** was recognized in the condensed consolidated statement of profit or loss[134](index=134&type=chunk) [19. Capital Commitments](index=52&type=section&id=19.%20%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) As of June 30, 2025, the Group's capital expenditure for investment properties not yet provided for in the condensed consolidated financial statements was **RMB 6.286 billion**, a slight decrease from end-2024 Capital Expenditure for Investment Properties (As of reporting period end) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Contracted but not provided for | 6,286,399 | 6,574,067 | [20. Financial Guarantees](index=53&type=section&id=20.%20%E8%B2%A1%E5%8B%99%E6%93%94%E4%BF%9D) As of June 30, 2025, the Group provided guarantees of **RMB 25.761 billion** for property buyers' bank mortgage repayments, a significant decrease from end-2024, in addition to counter-indemnity undertakings of **RMB 2.251 billion** for construction contract guarantees and credit facility guarantees for associates, joint ventures, and other entities Financial Guarantees (As of reporting period end) | Guaranteed Party | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Associates (utilized amount) | 14,599 | 31,145 | | Joint ventures (utilized amount) | 8,317,391 | 10,695,801 | | Other entities (utilized amount) | 273,833 | 264,737 | | Counter-indemnity undertakings for construction contracts | 2,251,203 | 1,716,493 | | Guarantees for property buyers' bank mortgage loans | 25,760,864 | 45,042,822 | - Guarantees for property buyers' bank mortgage repayments decreased from **RMB 45.043 billion** at end-2024 to **RMB 25.761 billion** as of June 30, 2025[138](index=138&type=chunk) - Counter-indemnity undertakings for construction contract guarantees increased[138](index=138&type=chunk) [21. Pledged Assets](index=54&type=section&id=21.%20%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group pledged assets with a carrying value of **RMB 111.324 billion** as collateral for its bank borrowings, a decrease from **RMB 138.662 billion** at end-2024 Carrying Value of Pledged Assets (As of reporting period end) | Asset Category | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Investment properties and property, plant and equipment | 108,638,463 | 100,847,606 | | Properties held for sale | 2,685,802 | 37,813,991 | | Total | 111,324,265 | 138,661,597 | - The carrying value of properties held for sale pledged as assets significantly decreased from **RMB 37.814 billion** at end-2024 to **RMB 2.686 billion** as of June 30, 2025[139](index=139&type=chunk) [22. Related Party Disclosures](index=55&type=section&id=22.%20%E9%97%9C%E8%81%AF%E6%96%B9%E6%8A%AB%E9%9C%B2) During the period, the Group engaged in several significant related party transactions with fellow subsidiaries, associates, and joint ventures, including engineering fees for property development projects, rental income, material procurement service income, and interest income/expenses, with total remuneration for the Company's directors and other key management personnel amounting to **RMB 12.129 million** Significant Related Party Transactions (For the six months ended June 30) | Transaction Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Engineering fees for property development projects with fellow subsidiaries | 1,607,648 | 1,483,573 | | Material procurement and supply chain management service income from fellow subsidiaries | 366,287 | 141,260 | | Trademark usage license fee income from associates | 145,435 | 183,200 | | Material procurement service income from associates | 349,546 | 267,563 | | Interest income from joint ventures | 32,468 | 58,885 | - Material procurement and supply chain management service income from fellow subsidiaries significantly increased by approximately **159.29%** year-on-year[140](index=140&type=chunk) Remuneration of Directors and Key Management Personnel (For the six months ended

Financial Performance - The Group's revenue for the first half of 2025 was approximately HK$3,570.9 million, with a profit attributable to owners of the Company of approximately HK$24.3 million[14]. - The total revenue of CR Construction Group Holdings Limited for the six months ended 30 June 2025 increased to approximately HK$3,570.9 million, up from approximately HK$2,773.2 million for the same period in 2024, representing a growth of about 28.7%[35]. - The total gross profit for the Group increased to approximately HK$295.4 million for the six months ended 30 June 2025, compared to approximately HK$188.1 million for the same period in 2024, reflecting a growth of approximately 57.1%[36]. - Profit attributable to owners of the Company for the six months ended 30 June 2025 amounted to approximately HK$24.3 million, down from approximately HK$35.8 million for the same period in 2024, indicating a decline of about 32.1%[36]. - Revenue for the six months ended June 30, 2025, increased to HK$3,570,868,000, up 28.7% from HK$2,773,188,000 in the same period of 2024[188]. - Gross profit for the period was HK$295,417,000, representing a 57.1% increase compared to HK$188,062,000 in 2024[188]. - Profit for the period decreased to HK$25,937,000, down 28.4% from HK$36,220,000 in the previous year[189]. Project and Contract Updates - The Group was awarded 9 new construction projects during the Reporting Period, with an aggregate original contract sum of approximately HK$5.3 billion[14]. - As of June 30, 2025, the Group had 57 projects on hand with an aggregate original contract sum of approximately HK$35.1 billion, including 9 new projects awarded during the reporting period totaling approximately HK$5.3 billion[41]. - The Group completed 4 projects during the reporting period with an aggregate original contract sum of approximately HK$3.3 billion[41]. - In the environmental operations segment, the Group had 2 projects with an aggregate original contract sum of approximately HK$5.5 million and 25 projects related to service concession arrangements[14]. - The Group has secured multiple contracts in the industrial wastewater treatment sector, including the Operation & Maintenance contract for the Anji Wastewater Treatment Plant Relocation Project[23]. Strategic Initiatives - The Group's strategy focuses on diversifying its business structure to create synergy between construction and environmental operations[14]. - The Group aims to enhance talent development through comprehensive training programs and personalized career paths[29]. - The Group plans to expand its presence in both domestic and overseas markets, focusing on opportunities in the Greater Bay Area and consolidating its operations in Malaysia and the United Kingdom[29]. - The Group's management is focused on raising standards and tightening risk control to ensure sustainable growth[15]. - The Group's strategic initiative to form a JV Company aims to explore opportunities in the environmental services and sewage treatment industries[105]. Operational Challenges - The construction sector continues to face challenges such as unstable property market sentiment, skilled labor shortages, and rising construction costs[15]. - The Group has implemented measures to improve resource allocation, cut costs, and enhance work productivity in response to economic challenges[15]. Awards and Recognition - The Group received a total of 68 honours during the Reporting Period, including the "Best Safety Culture Site" award by the Occupational Safety and Health Council[19]. - The Group received 68 honors during the reporting period, including awards for promoting environmental construction and efficient building applications[21]. Financial Position and Capital Management - The Group's capital expenditure during the reporting period was approximately HK$25.6 million, significantly higher than approximately HK$7 million in 2024[116]. - The Group's capital commitments as of June 30, 2025, amounted to approximately HK$24.6 million, up from approximately HK$1.2 million as of December 31, 2024[117]. - The Group reported net current assets of approximately HK$525.8 million as of June 30, 2025, down from approximately HK$565.5 million as of December 31, 2024[127]. - The Group's cash and cash equivalents decreased by approximately HK$92.2 million to approximately HK$238.6 million as of June 30, 2025, compared to HK$330.8 million as of December 31, 2024[127]. - The Group's gearing ratio was approximately 49.7%, an increase from 30.2% as of December 31, 2024[125]. Governance and Compliance - The Group has complied with all applicable code provisions of the Corporate Governance Code for the reporting period[139]. - The company has established an audit committee to oversee financial reporting and internal controls[145]. - The audit committee has reviewed the interim financial report for the six months ended June 30, 2025[145]. Shareholder Information - As of June 30, 2025, the company had a total of 500,000,000 issued shares[157]. - Zhejiang State-owned Capital Operation Company Limited holds 361,150,000 shares, representing approximately 72.23% of the company's shareholding[160]. - Ning Shing (Holdings) Company Limited holds 25,000,000 shares, representing approximately 5.00% of the company's shareholding[160]. - The Company has resolved not to declare an interim dividend for the six months ended June 30, 2025[103].

Company Information [Company Overview](index=3&type=section&id=Company%20Overview) iDreamSky Technology Holdings Limited (Stock Code: 1119), registered in the Cayman Islands, primarily engages in game development and operations, maintaining stable board and committee structures, legal counsel, auditor, registered office, headquarters, and principal place of business in Hong Kong during the reporting period - Company Name: iDreamSky Technology Holdings Limited (創夢天地科技控股有限公司)[1](index=1&type=chunk) - Stock Code: **1119**[1](index=1&type=chunk) - Registered Place: Cayman Islands[1](index=1&type=chunk) - Main Business: Game development and operations[109](index=109&type=chunk) - Chairman and CEO: Mr. Chen Xiangyu[5](index=5&type=chunk) - Auditor: PricewaterhouseCoopers[5](index=5&type=chunk) - Headquarters: 16th Floor, Unit 3, Block A, Kexing Science Park, No. 15 Keyuan Road, Nanshan District, Shenzhen, Guangdong, China[7](index=7&type=chunk) - Listing Date: December 6, 2018[7](index=7&type=chunk) Financial Highlights [Financial Performance Overview](index=5&type=section&id=Financial%20Performance%20Overview) For the six months ended June 30, 2025, the Company's revenue decreased by 18.9% year-on-year to 685,798 thousand RMB, but achieved a turnaround to a profit of 32,952 thousand RMB from a loss of 109,279 thousand RMB in the prior period, with adjusted profit for the period significantly increasing to 95,139 thousand RMB 2025 First Half Key Financial Data (Unaudited) | Indicator | 2025 (thousand RMB) | 2024 (thousand RMB) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 685,798 | 845,223 | -18.9% | | Gross Profit | 289,488 | 291,786 | -0.8% | | Profit/(Loss) Before Income Tax | 34,741 | (107,393) | Turned Loss into Profit | | Profit/(Loss) for the Period | 32,952 | (109,279) | Turned Loss into Profit | | Adjusted Profit for the Period | 95,139 | 3,297 | +2785.0% | Chairman's Report [Overall Performance and Strategy](index=6&type=section&id=Overall%20Performance%20and%20Strategy) In the first half of 2025, the Company focused on its core game business, driven by a "self-developed + overseas premium publishing" strategy, achieving a net profit turnaround and continuously enhancing operational quality and user value - Strategic Focus: Continuously focusing on the core game business, centered around the "self-developed + overseas premium publishing" dual-drive strategy[10](index=10&type=chunk) - Performance Highlights: Achieved a net profit turnaround, with dual improvements in operational quality and user value[10](index=10&type=chunk) [Overseas Premium Game Publishing Business](index=6&type=section&id=Overseas%20Premium%20Game%20Publishing%20Business) Overseas premium game publishing forms the Company's fundamental game business, with classic titles like "Subway Surfers," "Gardenscapes," and "Homescapes" maintaining steady growth through refined operations and IP collaborations, while new games like "Rush Royale," "Hole.io," and "Phantom Spirit War" offer rich reserves for future growth - Business Model: Over 10 years of experience in overseas premium game publishing, forming the Company's fundamental game business[11](index=11&type=chunk) - "Subway Surfers": Remains strong in its 13th year, introducing randomly generated maps and "Super Endless" mode, with a **paying ratio increase of nearly 30%** compared to 2024[11](index=11&type=chunk) - "Gardenscapes" and "Homescapes": Achieved steady growth, launching 6 versions and collaborating with multiple IPs in the first half, with Average Revenue Per Daily Active User (ARPDAU) increasing by **over 9%** year-on-year[12](index=12&type=chunk) - "War Robots": Demonstrated strong vitality and community engagement in 2025, with the "Sky Sword" version, a collaboration with the "Father of Gundam," achieving a record-high Average Revenue Per Daily Active User (ARPDAU) on its launch day, and the Fanbook community user base increasing by **over 36.6%** compared to the end of 2024[12](index=12&type=chunk) - New Game Reserves: "Rush Royale" generated nearly **300 million USD** in overseas gross billing, with global downloads exceeding **80 million**; "Hole.io" overseas gross billing surpassed **70 million USD**; "Phantom Spirit War" supports UGC content[13](index=13&type=chunk) [Self-Developed Business](index=7&type=section&id=Self-Developed%20Business) The self-developed PC version of "Calabiyau" saw its MAU increase by 9.9%, gross billing grow by 74.8%, and paying ratio and Average Revenue Per Monthly Active User (ARPMAU) rise by 23.2% and 59.0% respectively, through content optimization and commercialization adjustments; the mobile version completed three rounds of testing and is expected to launch within the year, while "Delta Force," co-developed with Tencent, has globally launched on PC and mobile, with its Daily Active User (DAU) scale exceeding 20 million in July - "Calabiyau" PC version: MAU increased by **9.9%**, gross billing grew by **74.8%**, paying ratio improved by **23.2%**, and Average Revenue Per Monthly Active User (ARPMAU) rose by **59.0%**[14](index=14&type=chunk) - "Calabiyau" Carnival: Successfully hosted a national university competition, attracting nearly **5,000 players**, with peak online live viewership exceeding **1 million**[14](index=14&type=chunk) - "Calabiyau" Mobile version: Completed three key tests, expected to launch domestically in 2025, with self-propagated new users accounting for **46.5%** of total new users during testing[16](index=16&type=chunk) - "Delta Force": Co-developed with Tencent, globally launched on PC and mobile, with Daily Active User (DAU) scale exceeding **20 million** in July, ranking among the top five in domestic Daily Active User (DAU) scale and top three in game gross billing[16](index=16&type=chunk) [AI Capabilities Fully Integrated into R&D and Operations](index=8&type=section&id=AI%20Capabilities%20Fully%20Integrated%20into%20R%26D%20and%20Operations) The Company is fully advancing the application of AI technology in R&D processes, user services, and gaming experiences, with AI code assistants developed in collaboration with Tencent Cloud improving R&D efficiency by over 30%, a self-developed AI code review platform enhancing code quality, the "Fengsheng" global AI user voice listening platform boosting operational efficiency and "Calabiyau" Steam positive review rate by 24%, and an AI customer service system achieving a 75% self-resolution rate and a 40% reduction in manual intervention - R&D Process: AI code assistants, in collaboration with Tencent Cloud, cover all technical development roles, improving overall R&D efficiency by **over 30%**[18](index=18&type=chunk) - Code Quality: A self-developed AI code review platform has been launched, enhancing code quality and game product quality[18](index=18&type=chunk) - User Services: The self-developed "Fengsheng" global AI user voice listening platform improves strategy response and operational iteration efficiency, boosting "Calabiyau" Steam positive review rate by **24%** and KOL engagement efficiency by **over 30%**[18](index=18&type=chunk) - AI Customer Service: Covers multiple platforms and languages, co-building a knowledge base with Alibaba Tongyi, achieving a **75%** self-resolution rate for high-frequency issues, a **40%** reduction in manual intervention, and **93%** accuracy[18](index=18&type=chunk) [Practicing Corporate Responsibility, Exploring "Games + Public Welfare" New Model](index=8&type=section&id=Practicing%20Corporate%20Responsibility%2C%20Exploring%20%E3%80%8CGames%20%2B%20Public%20Welfare%E3%80%8D%20New%20Model) The Company fulfills its corporate responsibility through a "Games + Public Welfare" model, exemplified by "Subway Surfers" launching a "Shenzhen 45th Anniversary" special edition to promote urban culture and tourism, and "Calabiyau" incorporating traditional Chinese cultural elements like shadow play art and the Chinese zodiac; the Company was again recognized as a "National Key Cultural Export Enterprise" in 2025 and actively participates in the "Pomegranate Seed Program" and "Green and Beautiful Guangdong Ecological Construction" - Cultural Promotion: "Subway Surfers" launched a "Shenzhen 45th Anniversary" special edition, contributing to cultural tourism integration and urban image building[20](index=20&type=chunk) - Integration of Traditional Culture: "Calabiyau" incorporates traditional cultural elements such as shadow play art, the Chinese zodiac, and traditional Chinese attire[20](index=20&type=chunk) - Accolades: Re-awarded "National Key Cultural Export Enterprise" in 2025[20](index=20&type=chunk) - Philanthropic Engagement: Collaborated with China Audio-Video and Digital Publishing Association to promote the "Pomegranate Seed Program," supporting the growth of youth in border and ethnic regions; participated in the "Green and Beautiful Guangdong Ecological Construction"[20](index=20&type=chunk) [Conclusion](index=9&type=section&id=Conclusion) The Chairman emphasized the Company's continued commitment to users, strengthening foundations, and persistent innovation, aiming to reward users with quality content and shareholders with long-term value, collectively creating a better future - Core Philosophy: Rooting in users, strengthening foundations, and persistent innovation are the sole paths for enterprises to navigate cycles and achieve value leaps[22](index=22&type=chunk) - Future Commitment: To reward users with quality content and shareholders with long-term value[22](index=22&type=chunk) Management Discussion and Analysis [Overall Financial Performance](index=10&type=section&id=

NICHE-TECH SEMICONDUCTOR MATERIALS LIMITED 駿碼半導體材料有限公司 (於開曼群島註冊成立之有限公司) (股份代號: 8490) 中期報告 2025 香港聯合交易所有限公司（「聯交所」）GEM（「GEM」）的特色 GEM的定位，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的公 司帶有較高投資風險。有意投資的人士應了解投資於該等公司的潛在風險，並應經過審慎周 詳的考慮後方作出投資決定。 目錄 | 2 | 簡明綜合損益及其他全面收益表 | | --- | --- | | 4 | 簡明綜合財務狀況表 | | 6 | 簡明綜合權益變動表 | | 7 | 簡明綜合現金流量表 | | 8 | 簡明綜合財務報表附註 | | 25 | 管理層討論及分析 | | 32 | 其他資料 | 簡明綜合損益及其他全面收益表 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於聯交所主板買賣之證 券承受較大的市場波動風險，同時無法保證在GEM買賣的證券會有高流通量的市場。 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， ...

中期報告 2025 2025 目錄 | | 頁碼 | | --- | --- | | 公司資料 | 2 | | 財務摘要 | 3 | | 管理層討論及分析 | 4 | | 企業管治及其他資料 | 18 | | 中期簡明綜合損益及其他全面收益表 | 26 | | 中期簡明綜合財務狀況表 | 28 | | 中期簡明綜合權益變動表 | 30 | | 中期簡明綜合現金流量表 | 31 | | 中期簡明綜合財務資料附註 | 32 | 1 滿貫集團控股有限公司 中期報告2025 公司資料 董事會 執行董事 王嘉俊先生 （主席兼行政總裁） 非執行董事 李家華女士 劉家安先生 梁艷女士 曹冉先生（委任於二零二五年七月一日生效） 吳君豪先生（委任於二零二五年七月一日生效） 胡楊先生（辭任於二零二五年七月一日生效） 獨立非執行董事 鍾兆華先生 陳嘉麗女士 麥仲康先生 審核委員會 陳嘉麗女士 （主席） 鍾兆華先生 麥仲康先生 薪酬委員會 麥仲康先生 （主席） 鍾兆華先生 陳嘉麗女士 提名委員會 鍾兆華先生 （主席） 陳嘉麗女士 麥仲康先生 企業管治委員會 王嘉俊先生 （主席） 鍾兆華先生 麥仲康先生 公司秘書 張玉存先生 (CPA ...

Interim Report 中期報告 2025 CONTENTS 目錄 | 2 | Corporate Information | 公司資料 | | --- | --- | --- | | 4 | Management Discussion and Analysis | 管理層討論及分析 | | 12 | Additional Information | 其他資料 | | 16 | Condensed Consolidated Statement of Profit or | 簡明合併損益及其他全面收益表 | | | Loss and Other Comprehensive Income | | | 19 | Condensed Consolidated Statement of Financial | 簡明合併財務狀況表 | | | Position | | | 21 | Condensed Consolidated Statement of Changes | 簡明合併權益變動表 | | | in Equity | | | 22 | Condensed Consolidated Statement of ...