Financial Performance - For the six months ended June 30, 2025, the company reported revenue of RMB 676.7 million, an increase of 3.7% compared to RMB 652.8 million for the same period in 2024[7]. - Gross profit for the same period was RMB 497.8 million, a decrease of 3.4% from RMB 515.4 million in 2024[7]. - Operating profit decreased significantly by 68.1% to RMB 64.4 million from RMB 202.0 million year-on-year[7]. - Net profit attributable to shareholders was RMB 55.1 million, down 73.2% from RMB 205.6 million in the previous year[7]. - The company's revenue for the six months ended June 30, 2025, was approximately RMB 676.7 million, an increase of about RMB 23.9 million or approximately 3.7% compared to RMB 652.8 million in the same period of 2024[17]. - Revenue from the structural heart disease business was approximately RMB 271.5 million, a slight increase of about 0.1% compared to RMB 271.2 million in the same period of 2024, with left atrial appendage occluder sales increasing by approximately 14.7%[18]. - Revenue from the peripheral vascular business was approximately RMB 391.7 million, an increase of about 2.9% compared to RMB 380.7 million in the same period of 2024, with stent sales increasing by approximately 9.6%[20]. - Revenue from the electrophysiology business was approximately RMB 13.5 million, a significant increase of approximately 1,400.0% compared to RMB 0.9 million in the same period of 2024[21]. - The company's gross profit decreased by approximately 3.4% to about RMB 497.8 million, with a gross margin of approximately 73.6%, down 5.3 percentage points from 78.9% in the same period of 2024[22]. Assets and Liabilities - The company’s total assets increased by 8.8% to RMB 5,333.7 million as of June 30, 2025, compared to RMB 4,900.4 million at the end of 2024[7]. - The company’s non-current assets rose by 7.6% to RMB 2,760.4 million, while current assets increased by 10.2% to RMB 2,573.3 million[7]. - The total current liabilities as of June 30, 2025, were approximately RMB 993.3 million, up from RMB 815.6 million as of December 31, 2024, indicating an increase of about 21.8%[42]. - The company’s equity attributable to equity holders as of June 30, 2025, was approximately RMB 3,770.2 million, compared to RMB 3,494.5 million as of December 31, 2024, showing an increase of about 7.9%[47]. - The company’s cash and cash equivalents as of June 30, 2025, were approximately RMB 782.6 million, reflecting a 17.5% increase from RMB 665.8 million as of December 31, 2024[45]. Market and Sales - The domestic market accounted for approximately 74.1% of total revenue, while overseas markets contributed 25.9%[9]. - The company’s overseas sales increased by approximately 8.0% compared to the previous year, driven by active market expansion strategies[9]. - Revenue from Asia (excluding mainland China) and Europe accounted for approximately 11.4% and 11.0% of total revenue, respectively, for the six months ended June 30, 2025, compared to 10.9% and 10.0% in the same period of 2024[57]. Research and Development - Research and development efforts are focused on innovative medical devices to maintain competitive strength and provide better treatment options globally[12]. - The company submitted 73 patent applications and received approval for 41 patents during the six months ended June 30, 2025, bringing the total effective patent applications to 2,464, with 1,123 patents approved and valid[15]. - R&D expenses decreased by approximately 18.2% from RMB 139.9 million to approximately RMB 114.5 million, with total R&D costs dropping about 23.6% to approximately RMB 156.0 million[29]. - Research and development expenses for the period were RMB 114,459,000, reflecting the company's commitment to innovation[157]. - The company has developed a fourth-generation congenital heart disease occluder to meet diverse patient needs, with a focus on innovative technology for left atrial appendage occluders, anticipating continued global market growth due to the large population of atrial fibrillation patients[61]. Expenses and Costs - Sales and distribution expenses increased by approximately 67.3% from RMB 150.0 million for the six months ended June 30, 2024, to approximately RMB 250.9 million for the six months ended June 30, 2025, primarily due to increased employee costs[27]. - Administrative expenses rose by approximately 63.1% from RMB 72.6 million to approximately RMB 118.4 million during the same period, driven by higher employee costs[28]. - The company recognized approximately RMB 33,377,000 in share-based payment expenses for the six months ended June 30, 2025, compared to RMB 40,626,000 for the same period in 2024[195]. Investments - The company has invested RMB 10.0 million in a mixed fund, with the fair value of this investment as of June 30, 2025, being approximately RMB 13.5 million[25]. - The fair value of the company's investment in the 2018 equity fund was approximately RMB 9.2 million as of June 30, 2025, reflecting a positive outlook for the healthcare sector[24]. - The company has agreed to invest a total of RMB 150.0 million in Jianhu Medical Technology (Suzhou) Co., Ltd., acquiring a 30% equity stake upon completion of all investment phases[52]. - The company made an investment of RMB 132,000,000 in an associate company during the period[150]. - The company’s capital injection into Yuanxin Technology totaled RMB 202,000,000 as part of the B round agreement, reducing its equity stake from 57.44% to 49.64%[188]. Corporate Governance - The company has adopted the corporate governance code and has complied with all relevant provisions during the reporting period[78]. - The audit committee, consisting of three independent non-executive directors, has reviewed the interim report and confirmed compliance with accounting standards and legal requirements[82]. - The company is committed to creating value for patients, healthcare institutions, and shareholders through continuous focus on innovation and operational optimization[76]. Employee Information - As of June 30, 2025, the total employee cost, including director remuneration, was approximately RMB 359.6 million, up from RMB 228.2 million in the same period of 2024[64]. - The company has 1,273 full-time employees as of June 30, 2025, a decrease from 1,392 employees as of December 31, 2024[64]. - The company has a comprehensive employee compensation policy that includes performance-based bonuses, transportation and meal allowances, and various insurance benefits[65]. - The company has established a union to protect employee rights and promote stable and healthy development[66]. Share Options and Awards - The total number of options that may be issued under the share option plan is capped at 462,929,240 shares, which is 10% of the issued share capital as of September 17, 2021[94]. - The total number of options granted as of June 30, 2025, is 193,320,000, with 95,309,600 options remaining unexercised[105]. - The company plans to continue its stock option program to incentivize key personnel and align their interests with shareholders[105]. - The 2019 Share Award Scheme aims to retain talent and attract suitable individuals for the group's further development[116]. - The 2022 Share Award Scheme was adopted on March 3, 2022, and aims to recognize and reward contributions from eligible participants[123][124]. Future Outlook - The global medical device industry continues to show significant growth opportunities driven by demographic changes, technological advancements, and increasing healthcare demand[75]. - The company will maintain a focus on international business expansion while ensuring overall operational efficiency and a commitment to technological innovation[75]. - The company plans to continue investing in new technology development and product upgrades to meet evolving market demands[75].

截至二零二五年六月三十日止六個月期間（「回顧期」），本集團的營業總收入約為 人民幣 166,439,568.86 元，較去年同期下降約 24.19%。 截至二零二五年六月三十日止六個月期間，歸屬於母公司股東的淨虧損為人 民幣 12,265,085.76 元，對比去年同期歸屬於母公司股東的淨虧損為人民幣 15,475,193.51 元，業績虧損略有收窄。 2025 中期報告書 財務摘要 截至二零二五年六月三十日止六個月期間的每股基本虧損約為人民幣 0.015 元（二 零二四年同期：每股基本虧損約為人民幣 0.020 元）。 建議不派付截至二零二五年六月三十日止六個月之中期股息。 1 南京三寶科技股份有限公司 財務資料 未經審核中期業績 南京三寶科技股份有限公司（「本公司」）董事會（「董事會」）公佈本公司及其附屬公司（統 稱「本集團」）截至二零二五年六月三十日止六個月的未經審核綜合業績，連同截至 二零二四年的比較數字如下： （除特別註明外，於本報告中，本公司的財務資料均以人民幣（「人民幣」）元列示。） 合併資產負債表 於二零二五年六月三十日 | | | 二零二五年 | 二零二四年 | | --- | --- | ...

2025 中期報告 公司簡介 稀 美 資 源 控 股 有 限 公 司（「本公司」，連 同 其 附 屬 公 司 統 稱「本集團」或「稀美資源」或「我 們」）於 二 零 二 零 年 三 月 在 香 港 聯 合 交 易 所 有 限 公 司（「聯交所」）主 板 成 功 上 市。目 前 本 集 團 已 經 分 別 在 廣 東 省、貴 州 省、湖 南 省 合 計 建 成 六 大 生 產 基 地。於 二 零 二 二 年，全 球 鋰 電 產 業 鏈 龍 頭 企 業 江 西 贛 鋒 鋰 業 集 團 股 份 有 限 公 司（「贛 鋒 鋰 業」）成 為 本 公 司 戰 略 股 東，佔 比16.7%；另 於 二 零 二 四 年 十 一 月 子 公 司 稀 美 資 源（廣 東）有 限 公 司（「稀美廣 東」）獲 得 金 石 製 造 業 轉 型 升 級 新 材 料 基 金（有 限 合 夥）六 千 萬 人 民 幣 的 注 資，該 等 注 資 將 為 本 公 司 在 資 金、 技 術 和 資 源 上 獲 得 有 力 支 持。 本 集 團 的 歷 史 始 於 二 零 零 六 年 五 月 九 日，是 中 華 人 民 共 和 國（「中 國」）鉭 ...

[Financial Highlights](index=3&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) The Group achieved robust financial growth in the first half of 2025, with profit for the period increasing by 11.4% year-on-year, alongside increases in basic earnings per share and dividends, improved cost-to-income ratio, and enhanced returns on assets and equity, demonstrating strong operational efficiency and capital management Key Financial Indicators for H1 2025 (HKD million) | Indicator | June 30, 2025 | June 30, 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Net operating income before impairment allowances | 40,022 | 35,336 | +13.3% | | Operating profit | 28,394 | 25,134 | +13.0% | | Profit for the period | 22,796 | 20,463 | +11.4% | | Profit attributable to equity holders of the Company | 22,152 | 20,040 | +10.5% | | Basic earnings per share (HKD) | 2.0952 | 1.8954 | +10.5% | | Dividend per share (HKD) | 0.580 | 0.570 | +1.8% | | Total assets | 4,399,822 | 4,194,408 (Dec 31, 2024) | +4.9% (compared to end of last year) | | Equity and reserves attributable to equity holders of the Company | 347,059 | 338,716 (Dec 31, 2024) | +2.5% (compared to end of last year) | Key Financial Ratios for H1 2025 (%) | Ratio | June 30, 2025 | June 30, 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Return on average total assets | 1.05 | 1.00 | +0.05 percentage points | | Return on average equity attributable to equity holders | 12.92 | 12.39 | +0.53 percentage points | | Cost-to-income ratio | 20.76 | 22.98 | -2.22 percentage points | | Loan-to-deposit ratio | 59.48 | 61.55 (Dec 31, 2024) | -2.07 percentage points (compared to end of last year) | | Total capital ratio | 25.69 | 22.00 (Dec 31, 2024) | +3.69 percentage points (compared to end of last year) | [Management Discussion and Analysis](index=3&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) This chapter elaborates on the Group's financial performance, operating conditions, risk management strategies, and a detailed review of each business segment for the first half of 2025, demonstrating robust profit growth, optimized cost management, sound asset quality, and ample liquidity amidst a complex global economic environment [Summary of Financial Performance and Condition](index=4&type=section&id=%E8%B2%A1%E5%8B%99%E8%A1%A8%E7%8F%BE%E5%8F%8A%E7%8B%80%E6%B3%81%E6%91%98%E8%A6%81) In the first half of 2025, the Group's profit for the period increased by 11.4% year-on-year to HKD 22.796 billion, with improved returns on average equity and total assets, while net interest margin was affected by lower market interest rates but partially mitigated by optimizing deposit structure, leading to a better cost-to-income ratio of 20.76%, stable asset quality with an impaired loan ratio of 1.02%, significantly enhanced capital ratios due to Basel III implementation, and ample liquidity Key Financial Results Summary for H1 2025 (HKD billion) | Indicator | H1 2025 | H2 2024 | H1 2024 | | :--- | :--- | :--- | :--- | | Profit for the period | 227.96 | 186.55 | 204.63 | | Return on average equity attributable to equity holders (%) | 12.92 | 10.94 | 12.39 | | Return on average total assets (%) | 1.05 | 0.91 | 1.00 | | Basic earnings per share (HKD) | 2.0952 | 1.7208 | 1.8954 | | Dividend per share (HKD) | 0.5800 | 1.4190 | 0.5700 | Key Financial Ratios for H1 2025 (%) | Ratio | H1 2025 | H2 2024 | H1 2024 | | :--- | :--- | :--- | :--- | | Net interest margin | 1.34 | 1.46 | 1.46 | | Adjusted net interest margin | 1.54 | 1.67 | 1.61 | | Cost-to-income ratio | 20.76 | 26.10 | 22.98 | | Impaired loan ratio | 1.02 | 1.05 | 1.06 | | Total capital ratio | 25.69 | 22.00 (Dec 31, 2024) | 22.17 (June 30, 2024) | | Tier 1 capital ratio | 23.69 | 20.02 (Dec 31, 2024) | 20.05 (June 30, 2024) | | Common Equity Tier 1 capital ratio | 23.69 | 20.02 (Dec 31, 2024) | 20.05 (June 30, 2024) | - Net interest margin was 1.34%, and adjusted net interest margin, including funding income or costs from foreign exchange swap contracts, was **1.54%**, a year-on-year decrease of 7 basis points, primarily due to lower market interest rates compared to the same period last year, though partially mitigated by optimizing the Group's deposit structure[11](index=11&type=chunk) - The cost-to-income ratio improved by **2.22 percentage points** year-on-year to **20.76%**, maintaining a relatively favorable level within the local banking industry[12](index=12&type=chunk) - The total capital ratio was **25.69%**, with both the Tier 1 capital ratio and Common Equity Tier 1 capital ratio at **23.69%**, primarily influenced by the decrease in risk-weighted assets following the effective implementation of the Basel III final reform package[16](index=16&type=chunk) - The average Liquidity Coverage Ratio for the first and second quarters of 2025 and the quarter-end Net Stable Funding Ratio both met regulatory requirements, indicating ample liquidity[17](index=17&type=chunk) [Operating Environment](index=6&type=section&id=%E7%B6%93%E7%87%9F%E7%92%B0%E5%A2%83) In the first half of 2025, global economic growth faced pressure with a shift towards looser monetary policies, while Mainland China's economy showed strong fundamentals and Hong Kong's economy grew steadily with good performance in merchandise trade and service exports, maintaining a stable financial system, active stock market, buoyant IPO market, and improved property market sentiment - Global trade uncertainty increased, global economic growth faced pressure, and monetary policies in most economies shifted towards easing[19](index=19&type=chunk) - Mainland China's economy demonstrated strong fundamentals, with stable growth in production and foreign trade, key industries returning to expansion, and steady growth in investment and consumption demand[19](index=19&type=chunk) - Hong Kong's economy grew steadily, with faster growth in merchandise trade and continued expansion in service exports, leading Moody's to upgrade Hong Kong's credit rating outlook to "stable"[19](index=19&type=chunk) - Hong Kong's financial system remained stable, the HKD exchange rate was steady, total bank deposits continued to grow, the stock market was active with the Hang Seng Index rising **20.0%** from end-2024, and IPO fundraising increased **sevenfold** year-on-year[19](index=19&type=chunk)[20](index=20&type=chunk) - Hong Kong's property market sentiment improved, with the private residential property price index rising for three consecutive months, and government stamp duty adjustments positively impacting price stability and transaction volume[20](index=20&type=chunk) [Consolidated Financial Review](index=7&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) In the first half of 2025, the Group's net operating income before impairment allowances increased by 13.3% year-on-year to HKD 40.022 billion, driven by growth in net interest income, net fee and commission income, and net trading gain, resulting in a 11.4% year-on-year increase in profit for the period to HKD 22.796 billion and a 10.5% increase in profit attributable to equity holders to HKD 22.152 billion Financial Highlights for H1 2025 (HKD million) | Indicator | June 30, 2025 | Dec 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Net operating income before impairment allowances | 40,022 | 35,917 | 35,336 | | Operating expenses | (8,310) | (9

[Company Information](index=2&type=section&id=Company%20Information) [Board of Directors and Committee Members](index=3&type=section&id=1.1%20Board%20of%20Directors%20and%20Committee%20Members) The company's board, comprising executive, non-executive, and independent non-executive directors, experienced changes in independent director appointments and committee chairpersons during the reporting period - Mr. Sun Han-hui resigned as **independent non-executive director and from multiple committee roles** on May 27, 2025[3](index=3&type=chunk) - Dr. Cheng Li-lan was appointed as **independent non-executive director, Audit Committee Chairman, and other committee member** on May 27, 2025[3](index=3&type=chunk) - Ms. Ni Hong was appointed as **Remuneration Committee Chairman** on May 27, 2025[3](index=3&type=chunk) [Company Contact and Registration Information](index=3&type=section&id=1.2%20Company%20Contact%20and%20Registration%20Information) The company secretary is Ms. Liu Qihua, with Mr. Zhou Yuan and Ms. Liu Qihua as authorized representatives, and its headquarters are in Beijing, China, with a registered office in the Cayman Islands - The company secretary is **Ms. Liu Qihua**, and authorized representatives are **Mr. Zhou Yuan and Ms. Liu Qihua**[4](index=4&type=chunk) - Headquarters and principal place of business in China are located at No. 18 Xueqing Road, Haidian District, Beijing, China[4](index=4&type=chunk) - The registered office is at PO Box 309, Ugland House, Grand Cayman KY1-1104, Cayman Islands[4](index=4&type=chunk) [Professional Advisors and Services](index=4&type=section&id=1.3%20Professional%20Advisors%20and%20Services) The company's auditor is PwC, with legal advisors covering Hong Kong, US, and Cayman Islands law, and Guotai Junan Securities as compliance advisor - The auditor is PricewaterhouseCoopers[4](index=4&type=chunk) - Legal advisors cover Hong Kong, US, and Cayman Islands law[5](index=5&type=chunk) - The compliance advisor is Guotai Junan Capital Limited[5](index=5&type=chunk) [Share Information and Website](index=4&type=section&id=1.4%20Share%20Information%20and%20Website) The company's stock codes are 2390 on SEHK and ZH on NYSE, with its official website being ir.zhihu.com - SEHK stock code: **2390**, NYSE stock code: **ZH**[5](index=5&type=chunk) - Company website: ir.zhihu.com[5](index=5&type=chunk) [Key Highlights](index=5&type=section&id=Key%20Highlights) [Financial Performance Summary](index=5&type=section&id=2.1%20Financial%20Performance%20Summary) For the six months ended June 30, 2025, total revenue decreased by 23.7% to RMB 1,446.6 million, but operating and net losses significantly narrowed, achieving a net profit of RMB 62.4 million and an adjusted net profit of RMB 98.3 million, turning losses into profits Key Financial Data for the Six Months Ended June 30 (RMB in thousands) | Metric | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 1,446,559 | 1,894,673 | (23.7)% | | Gross Profit | 899,287 | 1,100,023 | (18.2)% | | Operating Loss | (143,609) | (408,619) | (64.9)% | | Net Profit / (Loss) | 62,372 | (246,391) | N/A | | Adjusted Operating Loss | (106,501) | (340,686) | (68.7)% | | Adjusted Net Profit / (Loss) | 98,280 | (180,283) | N/A | [Operational Data Summary](index=5&type=section&id=2.2%20Operational%20Data%20Summary) For the six months ended June 30, 2025, average monthly subscribing members were 13.7 million, a 6.7% decrease year-over-year Average Monthly Subscribing Members for the Six Months Ended June 30 (in millions) | Metric | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Average Monthly Subscribing Members | 13.7 | 14.7 | (6.7)% | [Non-GAAP Financial Measures](index=6&type=section&id=2.3%20Non-GAAP%20Financial%20Measures) The company uses non-GAAP financial measures like adjusted operating loss and adjusted net profit/(loss) to exclude share-based compensation, intangible asset amortization from acquisitions, and non-GAAP tax effects, providing a clearer view of operational performance and period-over-period comparison - Non-GAAP financial measures exclude share-based compensation expenses, amortization of intangible assets from business acquisitions, and non-GAAP tax effects[9](index=9&type=chunk) Reconciliation of GAAP and Non-GAAP Financial Measures (RMB in thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Operating Loss | (143,609) | (408,619) | | Add: Share-based compensation expenses | 30,128 | 58,453 | | Add: Amortization of intangible assets from business acquisitions | 6,980 | 9,480 | | Adjusted Operating Loss | (106,501) | (340,686) | | Net Profit / (Loss) | 62,372 | (246,391) | | Add: Share-based compensation expenses | 30,128 | 58,453 | | Add: Amortization of intangible assets from business acquisitions | 6,980 | 9,480 | | Add: Non-GAAP adjustments for income tax effects | (1,200) | (1,825) | | Adjusted Net Profit / (Loss) | 98,280 | (180,283) | [Business Review and Outlook](index=7&type=section&id=Business%20Review%20and%20Outlook) [Business Review for the Reporting Period](index=7&type=section&id=3.1%20Business%20Review%20for%20the%20Reporting%20Period) In the first half of 2025, Zhihu achieved profitability under both GAAP and non-GAAP measures, deepened strategic adjustments to enhance community trustworthiness, fostered high-quality content, a trusted creator network, and AI capabilities, while significantly improving its gross margin to 62.2% - In the first half of 2025, the company achieved profitability under both GAAP and non-GAAP measures, with an adjusted net profit of **RMB 98.3 million**, compared to an adjusted net loss of RMB 180.3 million in the same period of 2024[14](index=14&type=chunk) - Gross margin increased to **62.2%**[14](index=14&type=chunk) - The company continued to deepen its strategic adjustments, focusing on enhancing the trustworthiness of the Zhihu community and promoting the synergistic development of high-quality content, a trusted creator network, and AI capabilities[14](index=14&type=chunk) [Financial and Strategic Highlights](index=7&type=section&id=3.1.1%20Financial%20and%20Strategic%20Highlights) In the first half of 2025, the company achieved profitability and improved gross margin, consolidating its long-term competitive advantage through resource reallocation, organizational optimization, and enhanced user experience, while focusing on high-quality content, trusted creators, and AI synergy - Achieved an adjusted net profit of **RMB 98.3 million** in the first half of 2025, with gross margin rising to **62.2%**[14](index=14&type=chunk) - Deepened strategic adjustments, focusing on enhancing **community trustworthiness**, including resource reallocation, organizational optimization, and improved user experience[14](index=14&type=chunk) [AI Progress](index=7&type=section&id=3.1.2%20AI%20Progress) Zhihu views AI as a historic opportunity, with its community becoming a hub for AI-related topics, accelerating investments in AI applications, launching new features like Zhihu Direct Answer, and leveraging AI to enhance content identification, moderation, paid membership promotion, and vocational training sales efficiency - Zhihu community has become a **center for AI-related topics**, with high-quality professional content increasingly cited by leading external AI large models and AI search engines[16](index=16&type=chunk) - Zhihu Direct Answer active usage penetration significantly increased, and a public knowledge base was launched to **enhance user experience and reduce AI hallucinations**[17](index=17&type=chunk) - AI applied to content identification, content moderation, paid membership promotion, and vocational training sales services, comprehensively **improving operational efficiency**[17](index=17&type=chunk) [Zhihu Content Ecosystem](index=8&type=section&id=3.1.3%20Zhihu%20Content%20Ecosystem) Zhihu continues to produce high-quality content, enhancing content quality through its TopicRank algorithm and trusted content model, with cumulative platform content reaching 911.4 million items by June 30, 2025, a 9.7% year-over-year increase, while also commercializing short-form novel IPs and expanding into mid-to-long-form novels - Based on the TopicRank algorithm, a trusted content model is built, combining AI capabilities with community interaction to dynamically identify and classify content quality[18](index=18&type=chunk) - As of June 30, 2025, cumulative platform content reached **911.4 million items**, a **9.7% year-over-year increase**[18](index=18&type=chunk) - High-quality short-form novel IP commercialization potential unleashed, successfully entering the **short-drama market**, and expanding content supply to mid-to-long-form novels[19](index=19&type=chunk) [Zhihu Users and Creators](index=9&type=section&id=3.1.4%20Zhihu%20Users%20and%20Creators) In the first half of 2025, monthly active users remained stable with increased engagement and core user retention, and significantly longer daily active user visit durations, despite average monthly subscribing members decreasing by 6.7% to 13.7 million, while professional creators grew by 26.9% and AI-powered content creators' activity continued to rise - Monthly active user base remained stable, with **significantly increased monthly active user engagement, core user retention, and daily active user visit duration**[22](index=22&type=chunk) Average Monthly Subscribing Members (in millions) | Metric | 2025上半年 | 2024上半年 | Change (%) | | :--- | :--- | :--- | :--- | | Average Monthly Subscribing Members | 13.7 | 14.7 | (6.7)% | - The number of certified honorary creators increased by **26.9% year-over-year**, and the activity of AI-powered high-end content creators continued to increase[23](index=23&type=chunk) [Monetization Model](index=10&type=section&id=3.1.5%20Monetization%20Model) Total revenue for the first half of 2025 decreased by 23.7% to RMB 1,446.6 million, with paid membership services remaining the largest revenue source but declining by 7.1%, and vocational training revenue also decreasing as the company shifts towards new social interaction and knowledge-sharing driven models 2025年上半年總收入及付費會員收入（人民幣百萬元） | Metric | 2025上半年 | 2024上半年 | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 1,446.6 | 1,894.7 | (23.7)% | | Paid Membership Services Revenue | 819.8 | 882.4 | (7.1)% | | Vocational Training Services Revenue | 156.6 | 279.1 | (43.9)% | - Paid membership services remain the largest revenue source, but a decrease in average monthly subscribing members led to a **slight revenue reduction**[26](index=26&type=chunk) - Vocational training service revenue decreased primarily due to strategic optimization of self-operated course products and acquired businesses, shifting towards **new social interaction and knowledge-sharing driven models**[26](index=26&type=chunk) [Material Events After Reporting Period](index=10&type=section&id=3.2%20Material%20Events%20After%20Reporting%20Period) No material events occurred after the reporting period and up to the latest practicable date that could impact the company, other than those disclosed in this interim report - No material events occurred after June 30, 2025, and up to the latest practicable date that could impact the Group[27](index=27&type=chunk) [Business Outlook](index=10&type=section&id=3.3%20Business%20Outlook) For the second half, the company will deepen user engagement, enhance high-quality content creation, improve its commercial ecosystem, and prioritize accelerating AI integration across the platform and expanding trusted content and services to broader applications beyond the community - For the second half, the company will deepen user engagement, enhance high-quality content creation, improve its commercial ecosystem, and continue to focus on core user experience and community trustworthiness[28](index=28&type=chunk) - Prioritize two key areas: accelerating AI integration across the entire platform, and expanding trusted content and services to broader application scenarios beyond the community[28](index=28&type=chunk) [Management Discussion and Analysis](index=11&type=section&id=Management%20Discussion%20and%20Analysis) [Consolidated Operating Results](index=11&type=section&id=4.1%20Consolidated%20Operating%20Results) For the six months ended June 30, 2025, total revenue was RMB 1,446.6 million, a 23.7% year-over-year decrease, while operating loss significantly narrowed by 64.9% to RMB 143.6 million, and net profit reached RMB 62.4 million, reversing the net loss from the prior year Consolidated Operating Results for the Six Months Ended June 30 (RMB in thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Total Revenue | 1,446,559 | 1,894,673 | | Cost of Revenue | (547,272) | (794,650) | | Gross Profit | 899,287 | 1,100,023 | | Total Operating Expenses | (1,042,896) | (1,508,642) | | Operating Loss | (143,609) | (408,619) | | Investment Income | 160,185 | 38,713 | | Net Profit / (Loss) | 62,372 | (246,391) | | Net Profit / (Loss) Attributable to Zhihu Shareholders | 62,388 | (247,585) | - Operating loss decreased by **64.9%** from RMB 408.6 million in the same period of 2024 to **RMB 143.6 million**[31](index=31&type=chunk) - Net profit was **RMB 62.4 million**, compared to a net loss of RMB 246.4 million in the same period of 2024[31](index=31&type=chunk) [Revenue Analysis](index=12&type=section&id=4.2%20Revenue%20Analysis) Total revenue for the first half of 2025 was RMB 1,446.6 million, a 23.7% year-over-year decrease, with paid membership remaining the largest revenue source at 56.7% of total revenue but declining by 7.1%, and marketing services and vocational training revenues also decreasing due to service product optimization and strategic adjustments Revenue by Business Line for the Six Months Ended June 30 (RMB in thousands) | Revenue Source | 2025 (RMB) | 2025 (%) | 2024 (RMB) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Marketing Services | 419,737 | 29.0 | 674,521 | 35.6 | | Paid Membership | 819,848 | 56.7 | 882,376 | 46.6 | | Vocational Training | 156,631 | 10.8 | 279,069 | 14.7 | | Others | 50,343 | 3.5 | 58,707 | 3.1 | | Total | 1,446,559 | 100.0 | 1,894,673 | 100.0 | - Marketing services revenue decreased primarily due to the company's continuous proactive optimization of service product offerings, with **profitability improvement as a strategic core**[36](index=36&type=chunk) - Paid membership revenue slightly decreased primarily due to a **decline in average monthly subscribing members**[36](index=36&type=chunk) - Vocational training revenue decreased primarily due to the company's **strategic optimization of self-operated course products and acquired businesses**[36](index=36&type=chunk) [Costs and Gross Profit](index=13&type=section&id=4.3%20Costs%20and%20Gross%20Profit) Cost of revenue decreased by 31.1% year-over-year to RMB 547.3 million, primarily due to reduced content and operational costs, personnel expenses, and cloud services and bandwidth costs, leading to a gross margin increase from 58.1% in 2024 to 62.2% in the first half of 2025, reflecting enhanced commercialization and operational efficiency - Cost of revenue decreased by **31.1%** to **RMB 547.3 million**, primarily due to reduced content and operational costs, personnel-related expenses, and lower cloud services and bandwidth costs resulting from improved technological efficiency[38](index=38&type=chunk) Cost of Revenue Details for the Six Months Ended June 30 (RMB in thousands) | Cost of Revenue Item | 2025 (RMB) | 2025 (%) | 2024 (RMB) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Content and Operational Costs | 280,040 | 19.4 | 396,159 | 20.9 | | Cloud Services and Bandwidth Costs | 80,323 | 5.6 | 129,163 | 6.8 | | Staff Costs | 72,406 | 5.0 | 119,657 | 6.3 | | Payment Processing Fees | 70,531 | 4.9 | 87,199 | 4.6 | | Others | 43,972 | 2.9 | 62,472 | 3.3 | | Total | 547,272 | 37.8 | 794,650 | 41.9 | - Gross margin increased from **58.1%** in the same period of 2024 to **62.2%** in the first half of 2025, primarily due to enhanced commercialization capabilities and improved operational efficiency[41](index=41&type=chunk) [Operating Expenses](index=14&type=section&id=4.4%20Operating%20Expenses) Total operating expenses for the first half of 2025 decreased by 30.9% year-over-year to RMB 1,042.9 million, with significant reductions in sales and marketing, research and development, and general and administrative expenses, driven by disciplined promotional spending, improved R&D efficiency, and lower expected credit loss provisions - Total operating expenses decreased by **30.9%** to **RMB 1,042.9 million**[42](index=42&type=chunk) - Sales and marketing expenses decreased by **27.7%** to **RMB 646.9 million**, primarily due to more disciplined promotional spending and reduced personnel-related expenses[42](index=42&type=chunk) - Research and development expenses decreased by **29.3%** to **RMB 287.5 million**, primarily due to improved R&D efficiency[42](index=42&type=chunk) - General and administrative expenses decreased by **47.6%** to **RMB 108.5 million**, primarily due to a decrease in the allowance for expected credit losses on accounts receivable[42](index=42&type=chunk) [Profitability Metrics](index=14&type=section&id=4.5%20Profitability%20Metrics) Both operating loss and adjusted operating loss significantly narrowed, while net profit and adjusted net profit turned profitable, with investment income substantially increasing due to unrealized gains from fair value remeasurement of an investment in a private company - Operating loss decreased by **64.9%** from RMB 408.6 million to **RMB 143.6 million**[43](index=43&type=chunk) - Adjusted operating loss decreased by **68.7%** from RMB 340.7 million to **RMB 106.5 million**[44](index=44&type=chunk) - Investment income increased to **RMB 160.2 million**, primarily due to unrealized gains from fair value remeasurement of an investment

BANK OF CHONGQING CO., LTD.* 重慶銀行股份有限公司* （ 於 中 華 人 民 共 和 國 註 冊 成 立 的 股 份 有 限 公 司 ） （股份代號：1963） 二零二五年中期報告 目錄 | 1. | 重要提示 | | 3 | | --- | --- | --- | --- | | 2. | 釋義 | | 4 | | 3. | 公司簡介 | | 5 | | 4. | 財務摘要 | | 8 | | 5. | 管理層討論與分析 | | 12 | | | 5.1 | 概述 | 12 | | | 5.2 | 業務綜述 | 13 | | | 5.3 | 財務報表分析 | 23 | | | 5.4 | 貸款質量分析 | 41 | | | 5.5 | 分部經營業績 | 48 | | | 5.6 | 根據監管要求披露的其他信息 | 49 | | | 5.7 | 控股子公司和參股公司情況 | 51 | | | 5.8 | 風險管理 | 53 | | | 5.9 | 資本管理 | 60 | | | 5.10 | 環境與展望 | 65 | | 6. | 重要事項 | | 66 | | 7. | 股本變動 ...

Financial Performance - Revenue for the six months ended June 30, 2025, was HK$350,413,000, a decrease of 7.7% compared to HK$379,577,000 in the same period of 2024[11]. - Gross profit for the same period was HK$94,640,000, down from HK$109,402,000, reflecting a decline of 13.5%[11]. - Loss before tax for the period was HK$45,628,000, slightly improved from a loss of HK$46,816,000 in 2024, indicating a reduction of 2.5%[11]. - Loss for the period attributable to equity holders was HK$45,450,000, compared to HK$46,804,000 in the previous year, showing a decrease of 2.9%[11]. - Basic and diluted loss per share for the period was HK$5.16, marginally better than HK$5.32 in the same period last year[11]. - Total comprehensive loss for the period attributable to owners of the company was HK$45,371,000, down from HK$50,410,000, reflecting a decrease of 10.1%[13]. - The company reported a loss of HK$45,450,000 for the period ended June 30, 2025[16]. - The consolidated loss attributable to owners of the Company amounted to approximately HK$45.5 million, slightly narrowing from approximately HK$46.8 million in the same period last year[78]. Income and Expenses - Other income and gains, net, increased to HK$20,846,000 from HK$15,410,000, representing a growth of 35.5%[11]. - Distribution expenses decreased to HK$56,385,000 from HK$62,209,000, a reduction of 9.7%[11]. - Administrative expenses slightly decreased to HK$103,655,000 from HK$105,506,000, a decline of 1.8%[11]. - Advertising income decreased to HK$208,389,000, a decline of 15.5% from HK$246,649,000 in the previous year[34]. - Circulation income slightly decreased to HK$64,187,000 from HK$66,983,000, representing a drop of 2.7%[34]. - Bank interest income fell to HK$8,311,000, down 25.5% from HK$11,165,000 in the prior period[37]. - The total tax credit for the period was HK$178,000, compared to HK$12,000 in the prior year, representing a significant increase in tax credits[45]. Assets and Liabilities - Total non-current assets decreased from HK$1,203,093,000 as of December 31, 2024, to HK$1,174,481,000 as of June 30, 2025, representing a decline of approximately 2.4%[14]. - Current assets decreased from HK$735,011,000 as of December 31, 2024, to HK$709,863,000 as of June 30, 2025, a reduction of about 3.4%[14]. - Total current liabilities decreased from HK$162,571,000 as of December 31, 2024, to HK$155,173,000 as of June 30, 2025, reflecting a decrease of approximately 4.5%[14]. - Net assets decreased from HK$1,631,294,000 as of December 31, 2024, to HK$1,585,923,000 as of June 30, 2025, a decline of about 2.8%[14]. - Total equity decreased from HK$1,631,294,000 as of January 1, 2025, to HK$1,585,923,000 as of June 30, 2025, a decrease of approximately 2.8%[17]. - The company’s retained profits decreased from HK$637,507,000 as of January 1, 2025, to HK$594,656,000 as of June 30, 2025, a reduction of about 6.7%[17]. - The company’s cash and bank balances increased slightly from HK$516,306,000 as of December 31, 2024, to HK$522,493,000 as of June 30, 2025, an increase of approximately 1.4%[14]. - Deferred tax liabilities remained unchanged at HK$133,413,000 as of June 30, 2025[14]. - The company’s lease liabilities increased from HK$7,392,000 as of December 31, 2024, to HK$9,605,000 as of June 30, 2025, an increase of approximately 30.0%[14]. Cash Flow - The Group's net cash flows from operating activities decreased to HK$8,073,000 from HK$10,522,000, reflecting a decline of 23.3%[20]. - Cash and cash equivalents at the end of the period were HK$153,689,000, down 26.8% from HK$209,675,000 at the end of June 2024[20]. - The Group's cash and cash equivalents at the beginning of the period were HK$224,350,000, compared to HK$230,232,000 at the start of the previous year[20]. Trade Receivables and Payables - Trade receivables decreased to HK$135,414,000 as of June 30, 2025, down from HK$173,242,000 as of December 31, 2024, reflecting a reduction of approximately 21.8%[55]. - The net carrying amount of trade receivables after impairment was HK$122,290,000, compared to HK$158,200,000 at the end of 2024, showing a decline of about 22.7%[55]. - The total trade payables increased to HK$26,805,000 as of June 30, 2025, compared to HK$25,930,000 at the end of 2024, reflecting a rise of about 3.4%[63]. Strategic Initiatives and Market Position - The Group implemented stringent cost-control measures, including workforce optimization, to mitigate the impact of weak market conditions[78]. - The Group's new media platform, "Sing Tao Headline," introduced an A.I.-driven recommendation system, effectively increasing click-through rates and user engagement[84]. - More than half of advertising budgets in Hong Kong were allocated to mobile devices, desktop platforms, and social media in 2025, prompting the Group to accelerate its new media initiatives[83]. - The Group's strategic upgrade of its new media platform has laid a solid foundation for readership expansion in the Greater Bay Area and across Mainland China[84]. - The "Praise Quest" initiative was launched to recognize positive actions in the community, including a program to reward young individuals excelling in holistic development[85]. - The Group plans to continuously optimize resource allocation and operational models while actively promoting digital transformation and content innovation[103][106]. - A new premium segment targeting elite individuals will be launched, alongside expansion into education and health business areas[103][106]. - The application of A.I., big data, and cloud technologies will be enhanced to improve content production efficiency and advertising conversion capabilities[103][106]. - The Group aims to strengthen community engagement through strategic event planning and promotional initiatives leveraging the "Sing Tao" brand[103][106]. Corporate Governance and Compliance - The audit committee reviewed the unaudited condensed consolidated financial statements for the Period, focusing on risk management and internal control systems[139]. - The Company has complied with the Corporate Governance Code throughout the Period[135]. - The Company confirmed compliance with the Model Code for directors' securities transactions throughout the Period[138]. Share Options and Securities - The outstanding share options granted under the 2012 Scheme of the Company are detailed for the current period[122]. - No share options were granted under the 2023 Scheme since its adoption, with a total of 88,054,301 shares potentially issuable under all schemes as of January 1, 2025, and June 30, 2025[124]. - During the Period, a total of 6,100,000 share options lapsed, leaving 6,000,000 options outstanding as of June 30, 2025[133]. - The exercise price for the share options ranges from HK$1.010 to HK$1.160, with fair values of HK$0.321 and HK$0.380 per share respectively[133]. - The Company did not purchase, sell, or redeem any of its listed securities during the Period, and held no treasury shares as of June 30, 2025[134].

公司資料 董事會 周星先生 （主席） * 姚望女士 （於 * 2025年6月20日獲委任） 王效釘先生# 簡家宜女士# 柯世鋒先生* 謝如傑先生* 曾華光先生** 厲放博士** 宮少林博士** Michael Charles VITERI先生** 朱琦先生** 張日忠先生* （於2025年6月20日辭任） 投資委員會 周星先生 姚望女士 （於2025年6月20日獲委任） 王效釘先生 簡家宜女士 張日忠先生 （於2025年6月20日辭任） 審計委員會 曾華光先生 厲放博士 朱琦先生 提名委員會 周星先生 曾華光先生 厲放博士 公司秘書 梁創順先生 投資經理 招商局中國投資管理有限公司 香港皇后大道東1號 太古廣場3期1604-09室 核數師 畢馬威會計師事務所 註冊公眾利益實體核數師 香港中環遮打道10號 太子大廈8樓 法律顧問 史密夫 • 斐爾律師事務所 諸立力律師行 胡關李羅律師行 主要往來銀行 中國工商銀行（亞洲）有限公司 招商銀行股份有限公司 股份過戶登記處 香港中央證券登記有限公司 香港灣仔皇后大道東183號 合和中心17樓1712-1716室 總辦事處及主要營業地點 香港皇后大道東1號 太古廣場3期 ...

股份代號 : 0366 Stock Code : 0366 2025 中期報告 Interim Report 2025 目錄 | | 頁次 | | --- | --- | | 管理層討論及分析 | | | 業務回顧及展望 | 2 | | 財務回顧 | 6 | | 中期簡明綜合財務資料 | | | 綜合損益表 | 7 | | 綜合全面收益表 | 8 | | 綜合財務狀況表 | 9 | | 綜合權益變動表 | 11 | | 簡明綜合現金流量表 | 12 | | 簡明綜合財務資料附註 | 14 | | 其他資料 | 25 | 陸氏集團（越南控股）有限公司 二零二五年中期報告 1 管理層討論及分析 業務回顧及展望 二零二五年上半年，全球經濟展現韌性，但也面臨重大挑戰。政治兩極化、經濟脆弱性、持續的戰爭以及氣候災害等 挑戰相互交織。在越南，年內關鍵發展包括美國聲稱會對越南實施超高關稅，與及63個省份將合併為34個省份及直 轄市，預計將對越南經濟和社會發展產生重大影響。二零二五年上半年期間，美元兌越南盾維持強勢，導致貨幣貶值 影響。本集團的主要業務位於越南、香港及中國。在此環境下，本集團的各項業務在期內受到不同程度的影響 ...

[Company Information](index=4&type=section&id=Company%20Information) [Board of Directors](index=4&type=section&id=Board%20of%20Directors) The Board of Directors experienced changes in executive and non-executive appointments, including a new chairman - Mr. Tang Hung Kong, Ms. Leung Li, and Mr. Wong Oi Chun ceased to be executive directors on **March 14, 2025**[4](index=4&type=chunk) - Mr. Chan Yuen Lung was appointed executive director and chairman on **May 20, 2025**[4](index=4&type=chunk) - Ms. Shen Tai Ju ceased to be a non-executive director on **June 12, 2025**[4](index=4&type=chunk) [Audit Committee](index=4&type=section&id=Audit%20Committee) The Audit Committee comprises three independent non-executive directors, with Mr. Tsang Ching Fung as chairman - Audit Committee members include Mr. Tsang Ching Fung (Chairman), Mr. Lo Shing Shan, and Mr. Chow Yick, all independent non-executive directors[4](index=4&type=chunk) [Remuneration Committee](index=4&type=section&id=Remuneration%20Committee) The Remuneration Committee consists of three members, chaired by Mr. Chow Yick - Remuneration Committee members include Mr. Chow Yick (Chairman), Mr. Lo Shing Shan, and Mr. Tsang Ching Fung[4](index=4&type=chunk) [Nomination Committee](index=4&type=section&id=Nomination%20Committee) The Nomination Committee chairman changed from Mr. Tang Hung Kong to Mr. Lo Shing Shan, with Mr. Chow Yick and Mr. Tsang Ching Fung added as members - Mr. Lo Shing Shan was appointed chairman of the Nomination Committee on **March 14, 2025**[4](index=4&type=chunk) - Mr. Tang Hung Kong ceased to be the former chairman of the Nomination Committee on **March 14, 2025**[4](index=4&type=chunk) [Compliance Officer](index=4&type=section&id=Compliance%20Officer) Mr. Tang Hung Kong ceased to be the Compliance Officer on March 14, 2025 - Mr. Tang Hung Kong ceased to be the Compliance Officer on **March 14, 2025**[4](index=4&type=chunk) [Authorized Representatives](index=4&type=section&id=Authorized%20Representatives) The Authorized Representative position saw multiple changes, including the cessation of Mr. Tang Hung Kong and Mr. Kwan Ka Man, the temporary appointment and cessation of Mr. Li Tao, and the appointments of Mr. Chan Yuen Lung and Mr. Ngai Tsz Hin - Mr. Tang Hung Kong ceased to be an Authorized Representative on **March 14, 2025**[4](index=4&type=chunk) - Mr. Chan Yuen Lung was appointed an Authorized Representative on **May 20, 2025**[4](index=4&type=chunk) - Mr. Ngai Tsz Hin was appointed an Authorized Representative on **July 15, 2025**[4](index=4&type=chunk) [Company Secretary](index=5&type=section&id=Company%20Secretary) The Company Secretary changed from Mr. Kwan Ka Man to Mr. Ngai Tsz Hin - Mr. Kwan Ka Man resigned as Company Secretary on **July 15, 2025**[5](index=5&type=chunk) - Mr. Ngai Tsz Hin was appointed Company Secretary on **July 15, 2025**[5](index=5&type=chunk) [Auditor](index=5&type=section&id=Auditor) The company's auditor is BDO Limited - The company's auditor is **BDO Limited**[6](index=6&type=chunk) [Registered Office](index=5&type=section&id=Registered%20Office) The company's registered office is located in the Cayman Islands - The registered office is located at Windward 3, Regatta Office Park, PO Box 1350, Grand Cayman KY1-1108, Cayman Islands[6](index=6&type=chunk) [Head Office and Principal Place of Business in Hong Kong](index=5&type=section&id=Head%20Office%20and%20Principal%20Place%20of%20Business%20in%20Hong%20Kong) The company's head office and principal place of business in Hong Kong are located at Central Plaza, Wan Chai, Hong Kong - The head office and principal place of business in Hong Kong are located at Unit 3902, 39/F, Central Plaza, 18 Harbour Road, Wan Chai, Hong Kong[6](index=6&type=chunk) [Principal Share Registrar and Transfer Office](index=5&type=section&id=Principal%20Share%20Registrar%20and%20Transfer%20Office) The company's principal share registrar and transfer office is located in the Cayman Islands - The principal share registrar and transfer office is **Ocorian Trust (Cayman) Limited**[6](index=6&type=chunk) [Hong Kong Share Registrar and Transfer Office](index=5&type=section&id=Hong%20Kong%20Share%20Registrar%20and%20Transfer%20Office) The company's Hong Kong share registrar and transfer office is Tricor Investor Services Limited - The Hong Kong share registrar and transfer office is **Tricor Investor Services Limited**[6](index=6&type=chunk) [Principal Bankers](index=5&type=section&id=Principal%20Bankers) The company's principal bankers include DBS Bank (Hong Kong) Limited and Hang Seng Bank Limited - The principal bankers are **DBS Bank (Hong Kong) Limited** and **Hang Seng Bank Limited**[6](index=6&type=chunk) [Company Website](index=5&type=section&id=Company%20Website) The company's official website is www.dragonkinggroup.com - The company website is **www.dragonkinggroup.com**[6](index=6&type=chunk) [Stock Code](index=5&type=section&id=Stock%20Code) The company's stock code is 8493 - The company's stock code is **8493**[6](index=6&type=chunk) [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income for the Six Months Ended June 30, 2025 | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 9,428 | 43,161 | | Cost of inventories consumed | (2,500) | (12,086) | | Gross profit | 6,928 | 31,075 | | Other income and net gains | 3 | 26 | | Staff costs | (6,278) | (18,521) | | Depreciation of property, plant and equipment | (414) | (399) | | Rental and related expenses | (3,466) | (4,541) | | Other operating expenses | (7,550) | (8,027) | | Finance costs | (608) | (1,046) | | Loss before tax | (11,385) | (1,433) | | Income tax expense | – | – | | Loss and total comprehensive expense for the period attributable to owners of the Company | (11,385) | (1,433) | | Loss per share (HK cents) | (4.65) | (0.62) | [Unaudited Condensed Consolidated Statement of Financial Position](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Unaudited Condensed Consolidated Statement of Financial Position as at June 30, 2025 | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | **Non-current assets** | | | | Property, plant and equipment | 25,084 | 25,501 | | Total non-current assets | 25,255 | 25,672 | | **Current assets** | | | | Inventories | 2,117 | 2,221 | | Trade receivables | 180 | 220 | | Prepayments, deposits and other receivables | 18,749 | 15,836 | | Cash and cash equivalents | 688 | 6,891 | | Total current assets | 22,010 | 25,444 | | **Current liabilities** | | | | Trade payables | 36,048 | 36,113 | | Other payables and accrued expenses | 41,895 | 37,770 | | Bank and other borrowings | 93,275 | 93,470 | | Amount due to a director | 2,767 | 3,814 | | Total current liabilities | 174,710 | 172,014 | | **Net current liabilities** | (152,700) | (146,570) | | **Total assets less current liabilities** | (127,445) | (120,898) | | **Net liabilities** | (127,445) | (120,898) | | **Total equity deficit** | (127,445) | (120,898) | - As at **June 30, 2025**, the Group's current liabilities exceeded current assets by approximately **HK$152.7 million**, with net liabilities of approximately **HK$127.4 million**, indicating significant uncertainty regarding going concern[16](index=16&type=chunk) [Unaudited Condensed Consolidated Statement of Changes in Equity](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) Unaudited Condensed Consolidated Statement of Changes in Equity for the Six Months Ended June 30, 2025 | Indicator | Share Capital (HK$ thousand) | Share Premium (HK$ thousand) | Other Reserves (HK$ thousand) | Capital Reserve (HK$ thousand) | Exchange Fluctuation Reserve (HK$ thousand) | Accumulated Losses (HK$ thousand) | Total Equity Deficit (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | As at January 1, 2024 (audited) | 20,736 | 90,912 | (43,224) | 42,703 | (143) | (213,363) | (102,379) | | Loss and total comprehensive expense for the period | – | – | – | – | – | (1,433) | (1,433) | | Placing of new shares (Note 14(a)) | 3,456 | 5,064 | – | – | – | – | 8,520 | | As at June 30, 2024 (unaudited) | 24,192 | 95,976 | (43,224) | 42,703 | (143) | (214,796) | (95,292) | | As at January 1, 2025 (audited) | 24,192 | 95,976 | (43,224) | 42,703 | (143) | (240,402) | (120,898) | | Loss and total comprehensive expense for the period | – | – | – | – | – | (11,385) | (11,385) | | Placing of new shares (Note 14(b)) | 4,838 | – | – | – | – | – | 4,838 | | As at June 30, 2025 (unaudited) | 29,030 | 95,976 | (43,224) | 42,703 | (143) | (251,787) | (127,445) | [Unaudited Condensed Consolidated Statement of Cash Flows](index=10&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) Unaudited Condensed Consolidated Statement of Cash Flows for the Six Months Ended June 30, 2025 | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Net cash (used in) / generated from operating activities | (9,679) | 1,105 | | Net cash generated from investing activities | 2 | 1 | | Net cash generated from financing activities | 3,474 | 5,974 | | Net (decrease) / increase in cash and cash equivalents | (6,203) | 7,080 | | Cash and cash equivalents at beginning of period | 6,891 | 1,014 | | Cash and cash equivalents at end of period | 688 | 8,094 | [Notes to the Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [1. General Information](index=11&type=section&id=1.%20General%20Information) This section outlines the company's registration details, principal place of business, and primary business activities, which involve operating and managing restaurants - The Company was incorporated as a limited liability company in the Cayman Islands on **August 8, 2016**[12](index=12&type=chunk) - The Group is principally engaged in the operation and management of restaurants[13](index=13&type=chunk) [2. Basis of Presentation and Principal Accounting Policies](index=11&type=section&id=2.%20Basis%20of%20Presentation%20and%20Principal%20Accounting%20Policies) This section briefly describes the basis of preparation for these interim financial statements, adhering to Hong Kong Financial Reporting Standards and GEM Listing Rules, noting no significant impact from new standards, but highlighting material uncertainties regarding going concern - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and GEM Listing Rules, with accounting policies consistent with the 2024 annual report, and new and revised standards having no significant impact[14](index=14&type=chunk)[15](index=15&type=chunk) - As at **June 30, 2025**, the Group's current liabilities exceeded current assets by approximately **HK$152.7 million**, with net liabilities of approximately **HK$127.4 million**, and cash and cash equivalents of only approximately **HK$688,000**, indicating significant uncertainty regarding going concern[16](index=16&type=chunk) - Management is actively seeking financing arrangements, implementing cost-saving measures, and planning to accelerate the opening of smaller, multi-cuisine restaurants and explore other catering opportunities to improve liquidity and financial position[17](index=17&type=chunk) [3. Estimates](index=13&type=section&id=3.%20Estimates) The preparation of interim financial statements involves management's judgments, estimates, and assumptions, with sources of estimation uncertainty consistent with those used in the prior year's consolidated financial statements - The preparation of interim financial statements requires management to make judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income, and expenses[20](index=20&type=chunk) [4. Financial Risk Management and Financial Instruments](index=13&type=section&id=4.%20Financial%20Risk%20Management%20and%20Financial%20Instruments) The Group is exposed to interest rate, credit, and liquidity risks, but risk management policies have not significantly changed since year-end, and the carrying amounts of receivables and payables are considered reasonable estimates of fair values - The Group's activities expose it to various financial risks: interest rate risk, credit risk, and liquidity risk[21](index=21&type=chunk) - There have been no changes in risk management policies since year-end, nor any significant changes in policies and practices for liquidity and capital risk management[22](index=22&type=chunk)[23](index=23&type=chunk) - The carrying amounts of receivables and payables are considered reasonable estimates of their fair values[24](index=24&type=chunk) [5. Revenue](index=14&type=section&id=5.%20Revenue) During the period, the Group's revenue, totaling **HK$9,428 thousand**, was entirely derived from Chinese restaurant operations in Hong Kong, representing a significant decrease compared to the prior year Revenue Breakdown (For the Six Months Ended June 30) | Category | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue from Chinese restaurant operations | 9,428 | 43,161 | | Geographical market (Hong Kong) | 9,428 | 43,161 | | Timing of revenue recognition (at a point in time) | 9,428 | 43,161 | - Performance obligations are satisfied when catering services are provided to customers, with trade terms primarily involving cash and credit card payments, and credit periods typically ranging from a few days to **60 days**[26](index=26&type=chunk) [6. Other Income and Net Gains](index=14&type=section&id=6.%20Other%20Income%20and%20Net%20Gains) Other income and net gains significantly decreased to **HK$3 thousand** during the period, primarily due to a reduction in miscellaneous income Other Income and Net Gains (For the Six Months Ended June 30) | Category | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Bank interest income | 2 | 1 | | Exchange gains | – | 1 | | Others | 1 | 24 | | **Total** | **3** | **26** | - Other income and net gains decreased by approximately **88.5%**, primarily due to a reduction in miscellaneous income during the period[28](index=28&type=chunk) [7. Loss for the Period](index=15&type=section&id=7.%20Loss%20for%20the%20Period) The loss for the period is stated after deducting auditor's remuneration and employee benefit expenses, with a significant reduction in employee benefit expenses compared to the prior period Loss for the Period Deductions (For the Six Months Ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Auditor's remuneration | 440 | 440 | | Employee benefit expenses (excluding directors' and chief executive's emoluments) | | | | Wages and salaries | 5,515 | 17,157 | | Contributions to pension schemes | 212 | 764 | | **Total employee benefit expenses** | **5,727** | **17,921** | [8. Income Tax Expense](index=15&type=section&id=8.%20Income%20Tax%20Expense) No provision for Hong Kong profits tax was made for the current or prior period, as estimated taxable profits were fully offset by tax losses brought forward from previous years - No provision for Hong Kong profits tax was made as the Group's estimated taxable profits for the relevant periods were fully offset by unutilised tax losses brought forward from prior years[31](index=31&type=chunk) - Hong Kong profits tax is calculated under a two-tiered profits tax rate regime, but there was no current Hong Kong tax for the current or prior period[31](index=31&type=chunk)[32](index=32&type=chunk) [9. Dividends](index=16&type=section&id=9.%20Dividends) The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of any interim dividend for the six months ended **June 30, 2025** (2024: nil)[33](index=33&type=chunk) [10. Loss Per Share](index=16&type=section&id=10.%20Loss%20Per%20Share) For the six months ended June 30, 2025, basic and diluted loss per share was **4.65 HK cents**, a significant increase from **0.62 HK cents** in the prior period, primarily due to expanded losses and an increased weighted average number of ordinary shares Loss Per Share Calculation (For the Six Months Ended June 30) | Indicator | 2025 (HK$ thousand/thousand shares) | 2024 (HK$ thousand/thousand shares) | | :--- | :--- | :--- | | Loss attributable to owners of the Company | (11,385) | (1,433) | | Weighted average number of ordinary shares | 244,860 | 232,046 | - No potential ordinary shares were in issue for the six months ended **June 30, 2025** and **2024**, hence no diluted (loss) earnings per share is presented[34](index=34&type=chunk) [11. Property, Plant and Equipment](index=16&type=section&id=11.%20Property,%20Plant%20and%20Equipment) For the six months ended June 30, 2025, the Group did not purchase any property, plant, and equipment - For the six months ended **June 30, 2025**, the Group did not purchase any property, plant and equipment (2024: nil)[35](index=35&type=chunk) [12. Trade Receivables](index=17&type=section&id=12.%20Trade%20Receivables) As at June 30, 2025, total trade receivables amounted to **HK$180 thousand**, a decrease from **HK$220 thousand** as at December 31, 2024, with the majority being overdue by more than **180 days** Ageing Analysis of Trade Receivables (As at June 30) | Ageing | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | 0 to 30 days | 10 | 50 | | Over 180 days | 170 | 170 | | **Total** | **180** | **220** | - Certain customers are granted credit periods ranging from a few days to **60 days**[36](index=36&type=chunk) [13. Trade Payables](index=17&type=section&id=13.%20Trade%20Payables) As at June 30, 2025, total trade payables were **HK$36,048 thousand**, largely consistent with **HK$36,113 thousand** as at December 31, 2024, with the vast majority being overdue by more than **90 days** Ageing Analysis of Trade Payables (As at June 30) | Ageing | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | 0 to 30 days | 72 | 171 | | 31 to 60 days | 73 | 20 | | 61 to 90 days | 69 | 64 | | Over 90 days | 35,834 | 35,858 | | **Total** | **36,048** | **36,113** | [14. Share Capital](index=18&type=section&id=14.%20Share%20Capital) As at June 30, 2025, the company's share capital increased to **HK$29,030 thousand** due to a placing of new shares, with a total of **290,304,000 shares** in issue Share Capital Movement (As at June 30) | Item | Number of Shares | HK$ thousand | | :--- | :--- | :--- | | As at January 1, 2024 | 207,360,000 | 20,736 | | Placing of new shares on February 22, 2024 | 34,560,000 | 3,456 | | As at December 31, 2024 and January 1, 2025 | 241,920,000 | 24,192 | | Placing of new shares on June 20, 2025 | 48,384,000 | 4,838 | | **As at June 30, 2025** | **290,304,000** | **29,030** | - The placing of **48,384,000 new shares** was completed on **June 20, 2025**, generating net proceeds of approximately **HK$4.55 million** and increasing share capital by **HK$4,838,400**[38](index=38&type=chunk) [Management Discussion and Analysis](index=19&type=section&id=Management%20Discussion%20and%20Analysis) [Business and Operations Review](index=19&type=section&id=Business%20and%20Operations%20Review) The Group primarily operates Cantonese restaurants, with one "Dragon Robe" brand restaurant in Hong Kong as at June 30, 2025, while two "Dragon King" brand restaurants closed in 2024 - The Group is a full-service Cantonese restaurant group operating Cantonese restaurants under its own brands[39](index=39&type=chunk) - During the period, the Group operated one full-service restaurant in Hong Kong, offering Cantonese cuisine under the "Dragon Robe" brand[40](index=40&type=chunk) - Due to lease expiry, the Group closed two other "Dragon King" brand restaurants in **April 2024** and **June 2024**, respectively[40](index=40&type=chunk) [Restaurant Operations](index=19&type=section&id=Restaurant%20Operations) - The Group is committed to providing customers with quality food, service, and a comfortable dining environment[40](index=40&type=chunk) - Currently operating one "Dragon Robe" brand Cantonese restaurant in Hong Kong, strategically located in a prime commercial area[40](index=40&type=chunk) [Financial Review](index=19&type=section&id=Financial%20Review) The Group's financial performance significantly deteriorated during the period, with substantial declines in revenue, gross profit, and other income, leading to a widened loss attributable to owners of the Company, primarily due to restaurant closures and challenging market conditions - Total revenue for the period was approximately **HK$9.4 million**, a decrease of approximately **78.2%** from **HK$43.2 million** in the prior period, mainly due to the closure of two restaurants in the prior period[41](index=41&type=chunk) - Gross profit for the period was approximately **HK$7.0 million**, a decrease of approximately **77.5%** from **HK$31.1 million** in the prior period[44](index=44&type=chunk) - Loss attributable to owners of the Company was approximately **HK$11.4 million**, compared to a loss of approximately **HK$1.4 million** in the prior period, with the increased loss primarily due to reduced revenue[51](index=51&type=chunk) [Revenue](index=19&type=section&id=Revenue) - Total revenue for the period was approximately **HK$9.4 million**, a decrease of approximately **78.2%** from **HK$43.2 million** in the prior period, mainly due to the closure of two restaurants in the prior period[41](index=41&type=chunk) Revenue Details (For the Six Months Ended June 30) | Brand | 2025 (HK$ thousand) | Percentage of Total Revenue (%) | 2024 (HK$ thousand) | Percentage of Total Revenue (%) | | :--- | :--- | :--- | :--- | :--- | | Dragon King* | – | – | 27,930 | 64.7 | | Dragon Robe | 9,428 | 100.0 | 15,231 | 35.3 | | **Total Revenue** | **9,428** | **100.0** | **43,161** | **100.0** | - "Dragon Robe" brand revenue decreased by approximately **38.1%** from approximately **HK$15.2 million** in the prior period to approximately **HK$9.4 million** in the current period, primarily due to a challenging business environment and weak market sentiment[43](index=43&type=chunk) [Gross Profit and Gross Margin](index=20&type=section&id=Gross%20Profit%20and%20Gross%20Margin) - Gross profit for the period was approximately **HK$7.0 million**, a decrease of approximately **77.5%** from **HK$31.1 million** in the prior period[44](index=44&type=chunk) - The overall gross margin for the period slightly increased by **1.5%** compared to the prior period, mainly due to reduced customer spending[44](index=44&type=chunk) [Other Income and Net Gains](index=21&type=section&id=Other%20Income%20and%20Net%20Gains) - The Group's other income and net gains decreased by approximately **88.5%** from approximately **HK$26,000** in the prior period to approximately **HK$3,000** in the current period[46](index=46&type=chunk) - This decrease was primarily due to a reduction in miscellaneous income during the period[46](index=46&type=chunk) [Staff Costs](index=21&type=section&id=Staff%20Costs) - Staff costs for the period were approximately **HK$6.3 million**, a decrease of approximately **65.9%** from **HK$18.5 million** in the prior period[47](index=47&type=chunk) - This decrease was due to the closure of certain restaurants in **April** and **June 2024**[47](index=47&type=chunk) [Depreciation of Right-of-Use Assets](index=21&type=section&id=Depreciation%20of%20Right-of-Use%20Assets) - The Group's depreciation of right-of-use assets is charged on a straight-line basis over the lease term, which generally ranges from two to three years[48](index=48&type=chunk) [Rental and Related Expenses](index=21&type=section&id=Rental%20and%20Related%20Expenses) - The Group's rental and related expenses decreased by approximately **22.2%** from approximately **HK$4.5 million** in the prior period to approximately **HK$3.5 million** in the current period[49](index=49&type=chunk) - This decrease was primarily due to the reduced number of restaurants operated by the Group in the first half of **2025** compared to the first half of **2024**[49](index=49&type=chunk) [Other Operating Expenses](index=21&type=section&id=Other%20Operating%20Expenses) - The Group's other operating expenses decreased by approximately **5.0%** from approximately **HK$8.0 million** in the prior period to approximately **HK$7.6 million** in the current period[50](index=50&type=chunk) - This decrease was primarily due to the closure of certain restaurants in **April** and **June 2024**[50](index=50&type=chunk) [Loss Attributable to Owners of the Company](index=22&type=section&id=Loss%20Attributable%20to%20Owners%20of%20the%20Company) - Loss attributable to owners of the Company was approximately **HK$11.4 million**, compared to a loss of approximately **HK$1.4 million** in the prior period[51](index=51&type=chunk) - This increased loss was primarily due to reduced revenue resulting from the closure of two restaurants[51](index=51&type=chunk) [Outlook](index=22&type=section&id=Outlook) The Hong Kong catering industry faces multiple challenges, including changing consumption patterns, rising costs, and a weak local economy; the Group will comprehensively review operations, diversify its restaurant portfolio, explore new opportunities, and continue cost control and efficiency improvements to navigate uncertainties and enhance shareholder value - The Hong Kong catering industry faces multiple challenges, including changing customer consumption patterns, rising food and labor costs, weak consumer spending, and the rise of takeaway and delivery services[52](index=52&type=chunk) - The Group will conduct a comprehensive review and integration of its operations, seizing opportunities to diversify its existing restaurant portfolio and expand its presence in the catering market[52](index=52&type=chunk) - The Group will continue to implement cost control and enhance operational efficiency, closely monitor market dynamics, adopt flexible operating strategies, strive to provide quality dining experiences for customers, and focus on its core business to drive sustainable development and enhance shareholder value[52](index=52&type=chunk) [Capital Structure](index=22&type=section&id=Capital%20Structure) As at June 30, 2025, the company's issued share capital increased to **HK$29,030,400** due to a placing of new shares, with net proceeds of approximately **HK$4.55 million** to be used for general working capital, business development, and debt repayment - On **June 2, 2025**, the Group entered into a placing agreement, whereby the Group conditionally agreed to place up to **48,384,000 placing shares** on a best effort basis[54](index=54&type=chunk) - On **June 20, 2025**, a total of **48,384,000 placing shares** were successfully placed to Mr. Lee Cheong Sun at a placing price of **HK$0.10** per placing share, generating net proceeds of approximately **HK$4.55 million**[54](index=54&type=chunk) - The net proceeds are intended to be used for the Group's general working capital (approximately **37.4%**), business development (approximately **44.0%**), and repayment of the Company's outstanding liabilities (approximately **18.6%**)[54](index=54&type=chunk) [Liquidity and Financial Resources](index=23&type=section&id=Liquidity%20and%20Financial%20Resources) The Group primarily funds its liquidity through operating cash and bank borrowings; as at June 30, 2025, bank and other borrowings were approximately **HK$93.3 million**, while cash and cash equivalents significantly decreased to approximately **HK$0.7 million** - The Group primarily funds its liquidity and capital requirements through cash generated from operations and bank and other borrowings[56](index=56&type=chunk) - As at **June 30, 2025**, the Group's bank and other borrowings were approximately **HK$93.3 million** (December 31, 2024: approximately **HK$93.5 million**)[56](index=56&type=chunk) - As at **June 30, 2025**, the Group's cash and cash equivalents were approximately **HK$0.7 million** (December 31, 2024: approximately **HK$6.9 million**)[56](index=56&type=chunk) [Gearing Ratio](index=24&type=section&id=Gearing%20Ratio) As at June 30, 2025, the Group's gearing ratio was approximately **376.0%**, largely consistent with **375.9%** as at December 31, 2024, indicating a high level of leverage - As at **June 30, 2025**, the Group's gearing ratio was approximately **376.0%** (December 31, 2024: approximately **375.9%**)[57](index=57&type=chunk) - The gearing ratio is calculated as net debt divided by capital and net debt[57](index=57&type=chunk) [Pledge of the Group's Assets](index=24&type=section&id=Pledge%20of%20the%20Group's%20Assets) As at June 30, 2025, the Group pledged buildings valued at approximately **HK$25.1 million** to secure certain bank facilities - As at **June 30, 2025**, the Group pledged buildings valued at approximately **HK$25.1 million** (December 31, 2024: approximately **HK$25.5 million**) to secure certain bank facilities granted to it[58](index=58&type=chunk) [Segment Information](index=24&type=section&id=Segment%20Information) The Group's segment information is disclosed in Note 5 to the unaudited condensed consolidated financial statements - The Group's segment information is disclosed in Note 5 to the unaudited condensed consolidated financial statements[59](index=59&type=chunk) [Material Investments Held, Material Acquisitions and Disposals of Subsidiaries and Affiliated Companies, and Plans for Material Investments or Capital Assets](index=24&type=section&id=Material%20Investments%20Held,%20Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%20and%20Affiliated%20Companies,%20and%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) Except as disclosed elsewhere in this interim report, the company held no material investments, made no material acquisitions or disposals of subsidiaries and affiliated companies, and had no other plans for material investments or capital assets during the period - During the period, the Company held no material investments, nor made any material acquisitions or disposals of subsidiaries and affiliated companies[60](index=60&type=chunk) - As at **June 30, 2025**, there were no other plans for material investments or capital assets[60](index=60&type=chunk) [Discloseable Transaction](index=25&type=section&id=Discloseable%20Transaction) The Company entered into a business introduction agreement with Garville Consultants Limited, paying a **HK$3 million** refundable earnest money to identify potential restaurant business sellers, and will pay a **5%** success fee upon successful acquisition, aiming to expand its business footprint and increase revenue - The Company entered into a business introduction agreement with Garville Consultants Limited, acting as an independent business intermediary to identify and introduce potential restaurant business sellers to the Group[61](index=61&type=chunk) - The Group paid a refundable amount of **HK$3,000,000** ("Refundable Deposit") upon signing the agreement, designated for obtaining due diligence information from potential restaurant sellers[61](index=61&type=chunk)[62](index=62&type=chunk) - Upon completion of any investment or acquisition involving a seller introduced by the introducer, the introducer will be entitled to a success fee equivalent to **5%** of the total investment or acquisition amount under the relevant transaction[61](index=61&type=chunk) [Foreign Exchange Risk](index=26&type=section&id=Foreign%20Exchange%20Risk) The Group's majority of income and expenses are denominated in HKD and RMB; due to insignificant RMB exchange rate fluctuations, the Group has no material foreign exchange risk and has not used financial instruments for hedging - The majority of the Group's income and expenses are denominated in **HKD** and **RMB**[65](index=65&type=chunk) - Historical RMB exchange rate fluctuations during the period were not significant, thus no material risk is expected from RMB transactions and balances[65](index=65&type=chunk) - The Group has no material foreign exchange risk and did not use any financial instruments for hedging purposes during the period[66](index=66&type=chunk) [Treasury Policy](index=26&type=section&id=Treasury%20Policy) The Board will continue to adopt a prudent policy in managing cash balances and maintaining a strong and robust liquidity position to capitalize on future growth opportunities - The Directors will continue to adopt a prudent policy in managing the Group's cash balances and maintaining a strong and robust liquidity position to ensure the Group is prepared to capitalize on future growth opportunities[67](index=67&type=chunk) [Contingent Liabilities](index=26&type=section&id=Contingent%20Liabilities) As at June 30, 2025, the Group had no material contingent liabilities - As at **June 30, 2025**, the Group had no material contingent liabilities (December 31, 2024: nil)[68](index=68&type=chunk) [Commitments](index=26&type=section&id=Commitments) As at June 30, 2025, the Group had no commitments - As at **June 30, 2025**, the Group had no commitments (December 31, 2024: nil)[69](index=69&type=chunk) [Interim Dividend](index=27&type=section&id=Interim%20Dividend) The Board does not recommend the payment of any interim dividend for the current period - The Board does not recommend the payment of any interim dividend for the current period (prior period: nil)[70](index=70&type=chunk) [Employees and Remuneration Policy](index=27&type=section&id=Employees%20and%20Remuneration%20Policy) As at June 30, 2025, the Group had **38 employees**, with total staff costs of approximately **HK$6.3 million**; the remuneration policy includes fixed salaries and variable bonuses, and a share option scheme to incentivize employees - As at **June 30, 2025**, the Group had approximately **38 employees** (June 30, 2024: **48 employees**)[71](index=71&type=chunk) - Total staff costs for the period (including directors' emoluments and mandatory provident fund contributions) were approximately **HK$6.3 million** (prior period: approximately **HK$18.5 million**)[71](index=71&type=chunk) - The Company's remuneration policy primarily comprises a fixed component (in the form of basic salary) and a variable component (including discretionary bonuses and other performance-based remuneration), and a share option scheme has been adopted to acknowledge and reward directors and employees who contribute to the Group's growth and development[71](index=71&type=chunk) [Competing Interests in Businesses](index=27&type=section&id=Competing%20Interests%20in%20Businesses) During the period, none of the Company's directors, controlling shareholders, substantial shareholders, or their close associates held any business or interest that competes with the Group's business - During the period, none of the Company's directors, controlling shareholders, substantial shareholders, or their respective close associates held any business or interest that competes or may compete with the Group's business[72](index=72&type=chunk) [Share Option Scheme](index=28&type=section&id=Share%20Option%20Scheme) The Company adopted a share option scheme on December 15, 2017, to incentivize directors, employees, and other stakeholders; the scheme is valid for ten years, with a maximum of **10%** of issued shares available for grant, and no more than **1%** to any single participant within any **12-month** period; no share options were granted, exercised, cancelled, or lapsed during the period - The Company conditionally adopted a share option scheme on **December 15, 2017**, pursuant to a written resolution passed by shareholders, aiming to incentivize and retain top talent[73](index=73&type=chunk) - The maximum number of shares that may be issued under the share option scheme is **10%** of all issued shares, and the total number of shares granted to any participant within any **12-month** period shall not exceed **1%** of the issued shares[74](index=74&type=chunk)[75](index=75&type=chunk) - The share option scheme will be valid for **10 years** from the adoption date; no share options were granted, exercised, cancelled, or lapsed during the period[76](index=76&type=chunk)[78](index=78&type=chunk) [Events After Reporting Period](index=30&type=section&id=Events%20After%20Reporting%20Period) On August 28, 2025, Dragon King International Group Limited, a wholly-owned subsidiary of the Company, entered into a non-legally binding memorandum of understanding with 1957 & Co. (Hospitality) Limited regarding the possible disposal of **70%** of the issued share capital of MANGO TREE (KOWLOON) LIMITED - On **August 28, 2025**, Dragon King International Group Limited, a direct wholly-owned subsidiary of the Company, entered into a non-legally binding memorandum of understanding with 1957 & Co. (Hospitality) Limited[79](index=79&type=chunk) - The memorandum of understanding concerns the possible disposal of **70%** of the issued share capital of MANGO TREE (KOWLOON) LIMITED[79](index=79&type=chunk) [Material Litigation](index=30&type=section&id=Material%20Litigation) The Group faces several material litigations, including Oriental E-Commerce Limited being ordered to pay **HK$2 million** for dishonored cheques, and wholly-owned subsidiary Fu Ju Limited being wound up for unpaid debts; another subsidiary, Yun Li Limited, reached a settlement with Strong Engineering Limited regarding renovation project payments - Oriental E-Commerce Limited (a wholly-owned subsidiary of the Company) was ordered to pay **HK$2,000,000** plus interest and legal costs to Chan Chun Kau & Co. Solicitors for dishonored cheques[80](index=80&type=chunk) - Wholly-owned subsidiary Fu Ju Limited was ordered to be wound up on **February 12, 2025**, for refusing to settle outstanding debts of approximately **HK$17,000**[81](index=81&type=chunk) - Yun Li Limited (a wholly-owned subsidiary of the Company) reached a settlement with Strong Engineering Limited regarding contract payments for certain renovation and refurbishment works at Dragon Robe[82](index=82&type=chunk)[83](index=83&type=chunk) [Other Information](index=32&type=section&id=Other%20Information) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares or Debentures of the Company](index=32&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20or%20Debentures%20of%20the%20Company) As at June 30, 2025, no directors or chief executive of the Company held any interests or short positions in the shares, underlying shares, or debentures of the Company or its associated corporations that are required to be disclosed to the Company and the Stock Exchange - As at **June 30, 2025**, no directors or chief executive of the Company held any interests or short positions in the shares, underlying shares, and debentures of the Company or its associated corporations that are required to be disclosed to the Company and the Stock Exchange[85](index=85&type=chunk) [Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares and Underlying Shares of the Company](index=32&type=section&id=Substantial%20Shareholders'%20and%20Other%20Persons'%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares%20of%20the%20Company) As at June 30, 2025, substantial shareholder Lee Cheong Sun held **48,384,000 ordinary shares** of the Company, representing approximately **16.67%** of the equity Substantial Shareholders' Long Positions in Ordinary Shares and Underlying Shares of the Company (As at June 30, 2025) | Name of Substantial Shareholder | Capacity/Nature of Interest | Number of Shares Held/Interested | Approximate Percentage of Shareholding (Note 1) | | :--- | :--- | :--- | :--- | | Lee Cheong Sun | Beneficial owner | 48,384,000 | 16.67% | - The approximate percentage of shareholding in this table is calculated based on the Company's **290,304,000 shares** in issue as at **June 30, 2025**[87](index=87&type=chunk) - Save as disclosed above, no other person or corporation held **5%** or more interest in the shares or underlying shares of the Company[87](index=87&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities or Sale of Treasury Shares](index=33&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities%20or%20Sale%20of%20Treasury%20Shares) During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and as at June 30, 2025, the Company held no treasury shares - During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[88](index=88&type=chunk) - As at **June 30, 2025**, the Company held no treasury shares[89](index=89&type=chunk) [Directors' Securities Transactions](index=33&type=section&id=Directors'%20Securities%20Transactions) All directors confirmed full compliance with the required standards of dealing set out in the GEM Listing Rules during the period, with no instances of non-compliance - All directors confirmed that, during the period, they fully complied with the required standards of dealing set out in Rules 5.48 to 5.67 of the GEM Listing Rules, and no instances of non-compliance occurred[90](index=90&type=chunk) [Corporate Governance Practices](index=34&type=section&id=Corporate%20Governance%20Practices) The Company deviated from corporate governance practices during the period, including the Nomination Committee lacking gender diversity, failure to purchase legal liability insurance for directors, and the absence of an established internal audit function - Following the cessation of former non-executive director Ms. Shen Tai Ju on **June 12, 2025**, the Board comprises directors of a single gender, deviating from Code Provision B.3.5 of the Corporate Governance Code[91](index=91&type=chunk) - The Company did not make appropriate insurance arrangements for potential legal actions against its directors during the period, deviating from Code Provision C.1.7 of the Corporate Governance Code[91](index=91&type=chunk) - The Group has not yet established its internal audit function, deviating from Code Provision D.2.2 of the Corporate Governance Code[92](index=92&type=chunk) [Use of Proceeds from Placing of New Shares Under General Mandate](index=35&type=section&id=Use%20of%20Proceeds%20from%20Placing%20of%20New%20Shares%20Under%20General%20Mandate) The placing of **48,384,000 shares** was completed on June 20, 2025, with net proceeds of approximately **HK$4.55 million** fully utilized for general working capital, business development, and repayment of outstanding liabilities - On **June 20, 2025**, the Company completed the placing of **48,384,000 shares** at a placing price of **HK$0.10** per share under the general mandate, with net proceeds of approximately **HK$4.55 million**[93](index=93&type=chunk) Use of Net Proceeds from Placing (For the Six Months Ended June 30, 2025) | Use of Net Proceeds | Net Proceeds (HK$ thousand) | Utilized Net Proceeds (HK$ thousand) | Unutilized Net Proceeds (HK$ thousand) | | :--- | :--- | :--- | :--- | | General working capital | 1,700 | 1,700 | – | | Business development | 2,000 | 2,000 | – | | Repayment of outstanding liabilities | 850 | 850 | – | | **Total** | **4,550** | **4,550** | **–** | - All shares issued under the placing were allotted to Mr. Lee Cheong Sun, an independent third party of the Company[95](index=95&type=chunk) [Changes in Directors](index=36&type=section&id=Changes%20in%20Directors) The Board experienced several changes during the period, including the removal of Mr. Tang Hung Kong, Ms. Leung Li, and Mr. Wong Oi Chun as executive directors due to prolonged absence from meetings, the resignation of Ms. Shen Tai Ju as a non-executive director, the appointment of Mr. Chan Yuen Lung as executive director and chairman, and adjustments to the roles of Mr. Li Tao and Mr. Lo Shing Shan - The executive directorships of Mr. Tang Hung Kong, Ms. Leung Li, and Mr. Wong Oi Chun were revoked, effective **March 14, 2025**, due to prolonged absence from Board meetings[97](index=97&type=chunk) - Mr. Chan Yuen Lung was appointed executive director and chairman of the Board on **May 20, 2025**[99](index=99&type=chunk) - Ms. Shen Tai Ju resigned as a non-executive director due to other business commitments, effective **June 12, 2025**[99](index=99&type=chunk) [Audit Committee](index=37&type=section&id=Audit%20Committee) The Audit Committee, composed of three independent non-executive directors, reviewed the Group's unaudited condensed consolidated financial statements for the period and deemed them compliant with applicable accounting standards, GEM Listing Rules, and adequately disclosed - The Audit Committee comprises three independent non-executive directors: Mr. Tsang Ching Fung (Chairman), Mr. Lo Shing Shan, and Mr. Chow Yick[102](index=102&type=chunk) - The Audit Committee reviewed the Group's unaudited condensed consolidated financial statements for the period and deemed them compliant with applicable accounting standards, GEM Listing Rules, and adequately disclosed[102](index=102&type=chunk)