CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") G E M h a s b e e n p o s i t i o n e d a s a m a r k e t designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration. Given the companies listed on GEM are ...

2025半年度報告 (A 股 : 600585 H 股 : 00914) Anhui Conch Cement Company Limited 半年度報告 Anhui Conch Cement Company Limited (A Share: 600585 H Share: 00914) 2025 INTERIM REPORT 重要提示 一、 本公司董事會及董事、高級管理人員保證本報告內容的真實、準確、完整，不存在虛假記載、 誤導性陳述或重大遺漏，並承擔個別和連帶的法律責任。 安徽海螺水泥股份有限公司 Interim Report 2025 二、 公司全體董事出席第十屆董事會第二次會議。 重要提示 安徽海螺水泥股份有限公司 半年度報告2025 1 三、 本半年度報告未經審計。 四、 本公司負責人楊軍先生、主管會計工作負責人虞水先生及會計機構負責人凡展先生聲明：保證 本報告中財務報告的真實、準確、完整。 五、 經本公司第十屆董事會第二次會議審議的2025年度中期利潤分配方案為：每股派發現金紅利 0.24元人民幣（含稅），不實施公積金轉增股本。 六、 前瞻性陳述的風險聲明：本半年度報告涉及的未來經營發展規劃等前 ...

[HIGHLIGHTS OF 2025 INTERIM RESULTS](index=2&type=section&id=HIGHLIGHTS%20OF%202025%20INTERIM%20RESULTS) This section provides a concise overview of the company's key financial performance indicators for the first half of 2025 2025 Interim Results Highlights | Indicator | H1 2025 (HK$ million) | H1 2024 (HK$ million) | | :--- | :--- | :--- | | Revenue | 121.0 | 122.7 | | Operating Profit | 34.3 | 34.0 | | Profit for the Period | 41.8 | 40.7 | | Basic Earnings Per Share (HK cents) | 5.26 | 5.12 | | Interim Dividend Per Share (HK cents) | 3.7 | 3.7 | [Financial Highlights](index=4&type=section&id=Financial%20Highlights) This section presents a detailed summary of the company's financial performance and position for the first half of 2025 Financial Highlights (For the six months ended June 30, 2025) | Indicator | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 121,045 | 122,652 | | Operating Profit | 34,251 | 33,952 | | Profit Before Tax | 47,366 | 46,003 | | Profit for the Period | 41,773 | 40,693 | | Profit Attributable to Ordinary Equity Holders of the Company | 41,773 | 40,693 | | Earnings Per Share (HK cents) Basic | 5.26 | 5.12 | | Earnings Per Share (HK cents) Diluted | 5.26 | 5.12 | | Interim Dividend Per Share (HK cents) | 3.7 | 3.7 | | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Total Assets | 530,471 | 536,137 | | Net Assets | 369,808 | 378,795 | - Basic earnings per share for H1 2025 was **5.26 HK cents**, an increase of **0.14 HK cents** from **5.12 HK cents** in the same period of 2024[6](index=6&type=chunk)[7](index=7&type=chunk) - The interim dividend per share for 2025 was **3.7 HK cents**, consistent with 2024, representing a payout ratio of **70.4%** of profit attributable to ordinary equity holders of the Company[6](index=6&type=chunk)[7](index=7&type=chunk) [Chairman's Statement](index=5&type=section&id=Chairman%27s%20Statement) The Chairman's statement provides an overview of the company's performance, market conditions, and future outlook [Overall Performance and Market Outlook](index=6&type=section&id=Overall%20Performance%20and%20Market%20Outlook) Despite market uncertainties from US tariff policy changes and geopolitical tensions, the Group achieved relatively good results in H1 2025, with increased pre-tax and after-tax profit due to higher-than-budgeted interest income and strict cost control - In H1 2025, the Group's turnover was **HK$121.0 million** (2024: **HK$122.7 million**), and operating profit was **HK$34.3 million** (2024: **HK$34.0 million**)[9](index=9&type=chunk)[11](index=11&type=chunk) - Higher-than-budgeted interest income was generated due to a slower-than-expected reduction in interest rates[9](index=9&type=chunk)[11](index=11&type=chunk) - Through continuous stringent cost control, profit before tax reached **HK$47.4 million** (2024: **HK$46.0 million**), and profit after tax was **HK$41.8 million** (2024: **HK$40.7 million**)[9](index=9&type=chunk)[11](index=11&type=chunk) - Hong Kong's external trade performance is expected to remain positive, with continued growth momentum in the GETS and GETS-related services sub-segments[15](index=15&type=chunk)[18](index=18&type=chunk) - The Identity Management segment is anticipated to rebound, and the Supply Chain Solutions sub-segment has a series of potential new projects to be implemented in the second half of the year[15](index=15&type=chunk)[18](index=18&type=chunk) - An interim dividend of **3.7 HK cents** per share for H1 2025 is recommended, consistent with the previous year[20](index=20&type=chunk)[22](index=22&type=chunk) [Management Discussion and Analysis](index=9&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an in-depth analysis of the company's operational and financial performance during the reporting period [Business Review](index=9&type=section&id=Business%20Review) This section reviews the Group's business segment performance in H1 2025, noting slight revenue decline in e-commerce but profit growth, slower recovery in identity management with new opportunities, and improved overall other services driven by GETS-related services [E-Commerce Business Review](index=9&type=section&id=E-Commerce%20Business%20Review) E-commerce revenue slightly decreased by 1.5% to HK$84.0 million, but segment profit grew by 1.5% to HK$27.6 million, driven by GETS price premium despite lower transaction volume, while the Group develops a new digital platform 'T+' for value-added services E-Commerce Business Performance (H1 2025) | Indicator | H1 2025 (HK$ million) | H1 2024 (HK$ million) | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | 84.0 | 85.2 | -1.5% | | GETS Sub-segment Revenue | 74.8 | 74.6 | +0.3% | | Supply Chain Solutions Sub-segment Revenue | 9.2 | 10.6 | -13.8% | | Segment Profit | 27.6 | 27.1 | +1.5% | - The total number of import and export trade declarations in Hong Kong decreased by **3.7%** year-on-year, and GETS transaction volume declined by **7.4%**, primarily due to geopolitical tensions and uncertainties surrounding US tariff policies[26](index=26&type=chunk)[29](index=29&type=chunk) - The GETS sub-segment achieved sustained revenue growth through premium pricing for quality services and a market-leading customer base, offsetting the impact of declining transaction volume[26](index=26&type=chunk)[29](index=29&type=chunk) - Revenue from Supply Chain Solutions sub-segment projects decreased by **HK$1.4 million** year-on-year, attributed to a subdued market sentiment and longer lead times for customer order confirmation[26](index=26&type=chunk)[29](index=29&type=chunk) - The Group is developing a new generation digital platform, "T+", aiming to transform from a GETS provider to a comprehensive value-added service provider for Hong Kong's trade community[31](index=31&type=chunk)[36](index=36&type=chunk) - The GETS sub-segment is expected to perform stably, and the Supply Chain Solutions sub-segment is anticipated to improve due to new orders[27](index=27&type=chunk)[30](index=30&type=chunk) [Identity Management ("IDM") Business Review](index=10&type=section&id=Identity%20Management%20%28%22IDM%22%29%20Business%20Review) Identity Management revenue declined 2.7% to HK$21.6 million and segment profit dropped 59.9% to HK$1.0 million, but new digital certificate solutions and government contracts lay a foundation for future growth, with improved product features expected in Q3 Identity Management Business Performance (H1 2025) | Indicator | H1 2025 (HK$ million) | H1 2024 (HK$ million) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 21.6 | 22.2 | -2.7% | | Segment Profit | 1.0 | 2.4 | -59.9% | - Recurring maintenance and support service revenue decreased by **HK$1.1 million**, while project revenue increased by **HK$0.5 million**[34](index=34&type=chunk)[37](index=37&type=chunk) - A digital certificate solution has been officially recognized by a major financial regulator in Hong Kong for remote account opening[35](index=35&type=chunk)[37](index=37&type=chunk) - A significant multi-year commercial arrangement has been established with a Hong Kong government department to design, implement, and issue a new type of digital certificate[35](index=35&type=chunk)[37](index=37&type=chunk) - Significant progress has been made in digital account opening and mobile security solutions, based on 2024 R&D investments, with new product enhancements expected to be launched in Q3 2025[38](index=38&type=chunk)[41](index=41&type=chunk) - The Identity Management business is expected to show clear signs of improvement starting from H2 2025[39](index=39&type=chunk)[41](index=41&type=chunk) [Other Services Business Review](index=11&type=section&id=Other%20Services%20Business%20Review) Other Services revenue increased 1.9% to HK$15.5 million and segment profit grew 6.6% to HK$9.7 million, driven by strong GETS-related services, particularly PAObank referral income, despite continued pressure on smart POS business due to local retail downturn Other Services Business Performance (H1 2025) | Indicator | H1 2025 (HK$ million) | H1 2024 (HK$ million) | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | 15.5 | 15.2 | +1.9% | | Segment Profit | 9.7 | 9.1 | +6.6% | | Smart POS and Related Business Revenue | 4.1 | 4.8 | -14.6% | | GETS-related Services Revenue | 11.4 | 10.4 | +10.0% | - Smart POS and related business performance declined by approximately **16%** year-on-year, primarily due to ongoing disruptions in the local retail sector, the US-China tariff war, and changes in consumer spending patterns[43](index=43&type=chunk)[46](index=46&type=chunk) - The Group has implemented restructuring and cost control measures to mitigate adverse impacts on profitability[43](index=43&type=chunk)[46](index=46&type=chunk) - Revenue from the GETS-related services sub-segment increased, mainly driven by a **73.9%** rise in referral income from the partnership with PAObank[45](index=45&type=chunk)[47](index=47&type=chunk) - GETS-related services are expected to continue achieving stable results, with referral income from PAObank steadily increasing, leading to an overall improvement in other services business in the second half of the year[48](index=48&type=chunk)[53](index=53&type=chunk) [Financial Review](index=13&type=section&id=Financial%20Review) This section reviews the Group's H1 2025 financial performance, covering revenue, operating expenses, profit, dividends, liquidity, financial position, capital commitments, and employee information, highlighting slight revenue decline but operating profit growth through cost control and stable interim dividend [Revenue and Operating Expenses](index=13&type=section&id=Revenue%20and%20Operating%20Expenses) Group revenue decreased by 1.3% to HK$121.0 million, while operating expenses before depreciation also fell by 1.3% to HK$82.9 million due to stringent cost control, resulting in a slight 0.9% increase in operating profit to HK$34.3 million Revenue and Operating Expenses (H1 2025) | Indicator | H1 2025 (HK$ million) | H1 2024 (HK$ million) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 121.0 | 122.7 | -1.3% | | Operating Expenses Before Depreciation | 82.9 | 84.0 | -1.3% | | Employee Costs | 54.3 | 55.8 | -2.7% | | Other Operating Expenses | 17.6 | 18.0 | -1.8% | | Procurement Costs | 10.9 | 10.2 | +7.2% | | Depreciation Expense | 3.9 | 4.7 | -17.0% | | Operating Profit | 34.3 | 34.0 | +0.9% | [Other Net Income and Profit](index=13&type=section&id=Other%20Net%20Income%20and%20Profit) Net other income rose 9.3% to HK$12.9 million, primarily due to a foreign exchange gain reversal, partially offset by a 20.2% decrease in interest income, leading to a 2.7% increase in after-tax profit to HK$41.8 million and basic/diluted EPS of 5.26 HK cents Other Net Income and Profit (H1 2025) | Indicator | H1 2025 (HK$ million) | H1 2024 (HK$ million) | YoY Change | | :--- | :--- | :--- | :--- | | Other Net Income | 12.9 | 11.8 | +9.3% | | Foreign Exchange Gain/(Loss) | 3.4 (Gain) | (0.1) (Loss) | Reversal from Loss to Gain | | Interest Income | 9.5 | 11.9 | -20.2% | | Share of Profit of an Associate | 0.2 | 0.3 | -33.3% | | Profit Before Tax | 47.4 | 46.0 | +3.0% | | Tax | (5.6) | (5.3) | +5.7% | | Profit After Tax | 41.8 | 40.7 | +2.7% | | Basic Earnings Per Share (HK cents) | 5.26 | 5.12 | +0.14 | | Diluted Earnings Per Share (HK cents) | 5.26 | 5.12 | +0.14 | [Dividend](index=14&type=section&id=Dividend) The Board declared an interim dividend of 3.7 HK cents per share for H1 2025, consistent with 2024, representing a payout ratio of 70.4% of profit attributable to ordinary equity holders - An interim dividend of **3.7 HK cents** per share for H1 2025 was declared, consistent with 2024[57](index=57&type=chunk)[62](index=62&type=chunk) - The interim dividend payout ratio was **70.4%** of the profit attributable to ordinary equity holders of the Company[57](index=57&type=chunk)[62](index=62&type=chunk) [Liquidity and Financial Position](index=14&type=section&id=Liquidity%20and%20Financial%20Position) As of June 30, 2025, the Group maintained strong liquidity with total cash and bank deposits of HK$453.3 million and no borrowings, despite a slight decrease in total assets and net assets primarily due to the 2024 final dividend distribution Liquidity and Financial Position (As of June 30, 2025) | Indicator | June 30, 2025 (HK$ million) | December 31, 2024 (HK$ million) | | :--- | :--- | :--- | | Total Cash and Bank Deposits | 453.3 | 453.1 | | Total Assets | 530.5 | 536.1 | | Net Assets | 369.8 | 378.8 | | Borrowings | None | None | - The decrease in net assets was primarily due to the distribution of the 2024 final dividend of **HK$50.9 million**[59](index=59&type=chunk)[63](index=63&type=chunk) - No financial instruments were invested during the period, and surplus cash reserves were placed in bank deposits to enhance returns[58](index=58&type=chunk)[63](index=63&type=chunk) [Material Acquisitions or Disposals](index=14&type=section&id=Material%20Acquisitions%20or%20Disposals) During the six months ended June 30, 2025, the Group did not undertake any material acquisitions or disposals related to subsidiaries or associated companies - No material acquisitions or disposals of subsidiaries or associated companies occurred during the period[60](index=60&type=chunk)[64](index=64&type=chunk) [Capital and Reserves](index=15&type=section&id=Capital%20and%20Reserves) As of June 30, 2025, the Group's capital and reserves attributable to shareholders totaled HK$369.8 million, a decrease of HK$9.0 million from year-end 2024, primarily due to the distribution of the 2024 final dividend Capital and Reserves (As of June 30, 2025) | Indicator | June 30, 2025 (HK$ million) | December 31, 2024 (HK$ million) | YoY Change | | :--- | :--- | :--- | :--- | | Capital and Reserves Attributable to Shareholders | 369.8 | 378.8 | -9.0 | [Charges on Assets and Contingent Liabilities](index=15&type=section&id=Charges%20on%20Assets%20and%20Contingent%20Liabilities) As of June 30, 2025, the Group held two bank guarantees totaling HK$2.2 million issued to the government, secured by deposit charges, with no other asset charges or contingent liabilities - Two bank guarantees totaling **HK$2.2 million** are secured by deposit charges to ensure the Group's performance[66](index=66&type=chunk)[72](index=72&type=chunk) - Other than the above, the Group has no other asset charges[67](index=67&type=chunk)[73](index=73&type=chunk) [Capital Commitments](index=15&type=section&id=Capital%20Commitments) As of June 30, 2025, outstanding capital commitments not provided for in the financial statements amounted to HK$0.4 million, primarily for computer equipment procurement, a significant reduction from HK$1.9 million at year-end 2024 Capital Commitments (As of June 30, 2025) | Indicator | June 30, 2025 (HK$ million) | December 31, 2024 (HK$ million) | | :--- | :--- | :--- | | Capital Commitments | 0.4 | 1.9 | - Capital commitments are primarily related to the Group's procurement of computer equipment[68](index=68&type=chunk)[74](index=74&type=chunk) [Employees and Remuneration Policy](index=15&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 222 employees with related costs of HK$54.3 million, maintaining a remuneration policy based on market levels, offering benefits like medical insurance and MPF, and incentive schemes including commissions, awards, and bonuses Employees and Remuneration (H1 2025) | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Number of Employees | 222 | 233 | | Employee-related Costs (HK$ million) | 54.3 | 55.8 | - The remuneration policy is determined based on market levels and offers various benefits and incentive schemes[69](index=69&type=chunk)[75](index=75&type=chunk) [Exposure to Fluctuation in Exchange Rates and Related Hedges](index=15&type=section&id=Exposure%20to%20Fluctuation%20in%20Exchange%20Rates%20and%20Related%20Hedges) As of June 30, 2025, the Group had no foreign exchange exposure or related hedging instruments, except for investments in entities incorporated in China and Macau and cash and bank deposits denominated in USD - No other foreign exchange risks or hedging instruments exist, apart from investments in China and Macau entities and USD-denominated cash[70](index=70&type=chunk)[76](index=76&type=chunk) [Disclosure of Directors' Interests](index=16&type=section&id=Disclosure%20of%20Directors%27%20Interests) This section details the interests and short positions of the company's directors and chief executives in shares, underlying shares, and debentures [Directors' and Chief Executives' Interests and Short Positions in Shares, Underlying Shares and Debentures](index=16&type=section&id=Directors%27%20and%20Chief%20Executives%27%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures) This section discloses the long positions of the company's directors and chief executives in shares, underlying shares, and debentures of the company or its associated corporations as of June 30, 2025, including personal, corporate, and share option interests Aggregate Long Positions of Directors and Chief Executives in Shares and Underlying Shares (As of June 30, 2025) | Director's Name | Personal Interests | Corporate Interests | Sub-total | Number of Underlying Shares | Total | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Dr. Lee Nai Hsi | – | 196,798,000 (1) | 196,798,000 | 100,000 | 196,898,000 | 24.78% | | Dr. Lee Kwok Bun | – | 101,125,000 (2) | 101,125,000 | 100,000 | 101,225,000 | 12.74% | | Mr. Zhai Diqiang | – | – | – | 100,000 | 100,000 | 0.01% | | Mr. Chow Tak Hee (4) | – | – | – | 100,000 | 100,000 | 0.01% | | Mr. Cheng Chun Chung | 2,755,843 | – | 2,755,843 | 8,300,000 | 11,055,843 | 1.39% | - Dr. Lee Nai Hsi indirectly holds a significant number of shares through TAL Apparel Limited and Eastex (HK) Limited[82](index=82&type=chunk) - Interests in underlying shares represent share options granted to directors under the company's share option scheme[82](index=82&type=chunk) - Mr. Chow Tak Hee retired as an Independent Non-executive Director after the Annual General Meeting on May 16, 2025[82](index=82&type=chunk) [Share Option Scheme](index=18&type=section&id=Share%20Option%20Scheme) The 2014 Share Option Scheme expired on May 8, 2024, but granted unexercised options remain valid, aiming to attract and retain talent and incentivize employees to contribute to the Group's success, with no changes in options during H1 2025 and 43,700,000 options outstanding - The 2014 Share Option Scheme expired on **May 8, 2024**, but granted unexercised share options remain valid[83](index=83&type=chunk)[86](index=86&type=chunk) - The scheme's purpose is to attract and retain the best employees and provide additional incentives to promote the Group's success[85](index=85&type=chunk)[88](index=88&type=chunk) - As of the date of this interim report, the total number of shares that may be issued under the 2014 Share Option Scheme is **34,875,000 shares**, representing approximately **4.39%** of the issued shares[90](index=90&type=chunk)[92](index=92&type=chunk) Movements in Share Options (For the six months ended June 30, 2025) | Category | Number of Share Options Outstanding as at January 1, 2025 | Number of Share Options Granted During the Period | Number of Share Options Exercised During the Period | Number of Share Options Cancelled During the Period | Number of Share Options Lapsed Due to Termination of Employment/Expiry of Ten-year Exercise Period During the Period | Number of Share Options Outstanding as at June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Directors | 8,300,000 | – | – | – | – | 8,300,000 | | Employees | 11,400,000 | – | – | – | – | 11,400,000 | | Former Employees | 24,000,000 | – | – | – | – | 24,000,000 | | **Total** | **43,700,000** | **–** | **–** | **–** | **–** | **43,700,000** | - No new share options were granted during the period[95](index=95&type=chunk)[96](index=96&type=chunk)[97](index=97&type=chunk) [Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares](index=23&type=section&id=Substantial%20Shareholders%27%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares) This section discloses the long positions of substantial shareholders, excluding directors and chief executives, in the company's shares as of June 30, 2025, including Pine Tree Holdings Ltd., TAL Apparel Limited, and Eastex (HK) Limited Aggregate Long Positions of Substantial Shareholders in Shares (As of June 30, 2025) | Substantial Shareholder | Registered Shareholder | Corporate Interests | Number of Shares | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | :--- | | Pine Tree Holdings Ltd. | – | 101,125,000 | 101,125,000 | 12.73% | | TAL Apparel Limited | 101,125,000 | – | 101,125,000 | 12.73% | | Eastex (HK) Limited | 95,673,000 | – | 95,673,000 | 12.04% | - The interest disclosed by Pine Tree Holdings Ltd. pertains to the same batch of shares disclosed by its wholly-owned subsidiary, TAL Apparel Limited[108](index=108&type=chunk) - Dr. Lee Nai Hsi is the sole shareholder and director of Eastex (HK) Limited and is therefore deemed to have an interest in the shares held by Eastex[108](index=108&type=chunk) [Corporate Governance](index=25&type=section&id=Corporate%20Governance) This section outlines the company's commitment to maintaining high standards of corporate governance and compliance with relevant codes [Compliance with the Corporate Governance Code](index=25&type=section&id=Compliance%20with%20the%20Corporate%20Governance%20Code) The company is committed to maintaining high corporate governance standards and confirms full compliance with all applicable code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules for the six months ended June 30, 2025 - The Company is committed to maintaining high standards of corporate governance and confirms compliance with all applicable code provisions[109](index=109&type=chunk)[112](index=112&type=chunk) [The Board](index=25&type=section&id=The%20Board) The Board comprises two executive, three non-executive (including Chairman), and three independent non-executive directors, responsible for overseeing the company's overall management and operations, with all directors maintaining high attendance at two meetings held during H1 2025 - The Board consists of **2** executive directors, **3** non-executive directors, and **3** independent non-executive directors[110](index=110&type=chunk)[113](index=113&type=chunk) - The Company has entered into employment contracts with executive directors and service contracts with non-executive and independent non-executive directors, each for a term of **three years**[111](index=111&type=chunk)[113](index=113&type=chunk) Board Meeting Attendance (For the six months ended June 30, 2025) | Director's Name | Meetings Attended/Eligible to Attend | | :--- | :--- | | Dr. Lee Nai Hsi | 2/2 | | Dr. Lee Kwok Bun | 2/2 | | Mr. Yuen Wing Sang | 2/2 | | Mr. Zhai Diqiang | 2/2 | | Mr. Chow Tak Hee (1) | 1/1 | | Ms. Cheung Ho Ling | 2/2 | | Mr. Lam Suen Wu | 2/2 | | Mr. Yuen Man Chung | 2/2 | | Mr. Cheng Chun Chung | 2/2 | - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all directors have confirmed compliance[116](index=116&type=chunk) [Audit and Governance Committee](index=27&type=section&id=Audit%20and%20Governance%20Committee) The unaudited interim results and report for the six months ended June 30, 2025, have been reviewed by the company's external auditor, KPMG, and the Board's Audit and Governance Committee - The interim results and report have been reviewed by external auditor KPMG and the Audit and Governance Committee[118](index=118&type=chunk)[119](index=119&type=chunk) [Changes of Directors' and Chief Executives' Information Pursuant to Rule 13.51B(1) of the Listing Rules](index=27&type=section&id=Changes%20of%20Directors%27%20and%20Chief%20Executives%27%20Information%20Pursuant%20to%20Rule%2013.51B%281%29%20of%20the%20Listing%20Rules) Changes in directors' and chief executives' information since the 2024 annual report include Mr. Chow Tak Hee's retirement as independent non-executive director, Mr. Zhai Diqiang's appointment as Remuneration Committee Chairman and other external roles, Mr. Cheng Chun Chung's appointment to the Enterprise Support Scheme Vetting Committee, and Dr. Lee Nai Hsi's stepping down as Chairman of the Board of Trustees of Lee Woo Sing College, CUHK - Mr. Chow Tak Hee retired as an Independent Non-executive Director, effective after the 2025 Annual General Meeting[120](index=120&type=chunk) - Mr. Zhai Diqiang was appointed as Chairman of the Remuneration Committee and as an Independent Non-executive Director of Capital Strategic Investment Limited[120](index=120&type=chunk) - Mr. Cheng Chun Chung was appointed as a member of the Enterprise Support Scheme Vetting Committee under the Innovation and Technology Fund[120](index=120&type=chunk) - Dr. Lee Nai Hsi stepped down as Chairman of the Board of Trustees of Lee Woo Sing College, The Chinese University of Hong Kong[120](index=120&type=chunk) [Other Information](index=28&type=section&id=Other%20Information) This section provides additional information on interim dividends, securities transactions, and share registrar closure dates [Interim Dividend](index=28&type=section&id=Interim%20Dividend) The Board declared an interim dividend of 3.7 HK cents per share for the six months ended June 30, 2025, consistent with the previous year, payable on October 8, 2025, to shareholders on record as of September 22, 2025, representing a 70.4% payout ratio of profit attributable to shareholders - An interim dividend of **3.7 HK cents** per share for H1 2025 was declared, consistent with 2024[121](index=121&type=chunk)[124](index=124&type=chunk) - The interim dividend is expected to be paid on **October 8, 2025**, with a payout ratio of **70.4%**[121](index=121&type=chunk)[124](index=124&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=28&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of its listed securities - Neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities during the period[122](index=122&type=chunk)[125](index=125&type=chunk) [Closure of Register of Members](index=28&type=section&id=Closure%20of%20Register%20of%20Members) The company's share transfer registration will be suspended from September 22 to September 24, 2025, to determine eligibility for the interim dividend, with all transfer forms due by 4:30 p.m. on September 19, 2025 - Share transfer registration will be suspended from **September 22 to September 24, 2025**, to determine eligibility for the interim dividend[123](index=123&type=chunk)[126](index=126&type=chunk) - The deadline for share transfer registration is **4:30 p.m. on September 19, 2025**[123](index=123&type=chunk)[126](index=126&type=chunk) [Independent Review Report](index=29&type=section&id=Independent%20Review%20Report) This section presents the independent review report on the interim financial information, confirming compliance with accounting standards [Introduction](index=29&type=section&id=Introduction) KPMG has reviewed Tradelink Electronic Commerce Limited's interim financial report for the six months ended June 30, 2025, confirming its compliance with the Listing Rules of The Stock Exchange of Hong Kong Limited and HKAS 34 'Interim Financial Reporting' issued by the HKICPA, with directors responsible for its preparation and presentation - KPMG has reviewed the interim financial report[129](index=129&type=chunk)[131](index=131&type=chunk) - The interim financial report complies with the Listing Rules and HKAS 34 'Interim Financial Reporting'[129](index=129&type=chunk)[131](index=131&type=chunk) - Directors are responsible for the preparation and presentation of the interim financial report[129](index=129&type=chunk)[131](index=131&type=chunk) [Scope of review](index=30&type=section&id=Scope%20of%20review) The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410, primarily involving inquiries of personnel responsible for financial and accounting matters, and analytical and other review procedures, with a scope significantly smaller than an audit, thus no audit opinion is expressed - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410[133](index=133&type=chunk)[135](index=135&type=chunk) - The scope of the review is smaller than an audit, therefore no audit opinion is expressed[133](index=133&type=chunk)[135](index=135&type=chunk) [Conclusion](index=30&type=section&id=Conclusion) Based on the review, KPMG found no matters suggesting that the interim financial report for the six months ended June 30, 2025, is not prepared, in all material respects, in accordance with HKAS 34 'Interim Financial Reporting' - No matters were found to suggest that the interim financial report was not prepared in material respects according to HKAS 34[134](index=134&type=chunk)[136](index=136&type=chunk) [Consolidated Statement of Profit or Loss (Unaudited)](index=31&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20%28Unaudited%29) This section presents the unaudited consolidated statement of profit or loss, detailing the company's revenues, expenses, and net profit for the six months ended June 30, 2025 Consolidated Statement of Profit or Loss (Unaudited) (For the six months ended June 30, 2025) | Indicator | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 121,045 | 122,652 | | Procurement Costs | (10,938) | (10,202) | | Employee Costs | (54,306) | (55,832) | | Depreciation | (3,915) | (4,710) | | Other Operating Expenses | (17,635) | (17,956) | | Operating Profit | 34,251 | 33,952 | | Other Net Income | 12,887 | 11,793 | | Share of Results of an Associate | 228 | 258 | | Profit Before Tax | 47,366 | 46,003 | | Tax | (5,593) | (5,310) | | Profit for the Period | 41,773 | 40,693 | | Basic Earnings Per Share (HK cents) | 5.26 | 5.12 | | Diluted Earnings Per Share (HK cents) | 5.26 | 5.12 | [Consolidated Statement of Profit or Loss and Other Comprehensive Income (Unaudited)](index=32&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income%20%28Unaudited%29) This section provides the unaudited consolidated statement of profit or loss and other comprehensive income, showing the total comprehensive income for the six months ended June 30, 2025 Consolidated Statement of Profit or Loss and Other Comprehensive Income (Unaudited) (For the six months ended June 30, 2025) | Indicator | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Profit for the Period | 41,773 | 40,693 | | Exchange Differences on Translation of Financial Statements of Operations Outside Hong Kong | 25 | 14 | | Total Comprehensive Income for the Period | 41,798 | 40,707 | [Consolidated Statement of Financial Position (Unaudited)](index=33&type=section&id=Consolidated%20Statement%20of%20Financial%20Position%20%28Unaudited%29) This section presents the unaudited consolidated statement of financial position, outlining the company's assets, liabilities, and equity as of June 30, 2025 Consolidated Statement of Financial Position (Unaudited) (As of June 30, 2025) | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 26,582 | 25,583 | | Goodwill | 9,976 | 9,976 | | Interests in an Associate | 5,502 | 5,274 | | Deferred Tax Assets | 639 | 606 | | **Current Assets** | | | | Trade Receivables and Contract Assets | 14,009 | 23,872 | | Other Receivables, Prepayments and Other Contract Costs | 20,229 | 17,265 | | Tax Recoverable | 191 | 509 | | Bank Deposits | 402,207 | 376,767 | | Cash and Cash Equivalents | 51,136 | 76,285 | | **Current Liabilities** | | | | Trade Creditors, Contract Liabilities and Other Payables | 150,600 | 150,170 | | Tax Payable | 5,048 | 2,401 | | **Non-current Liabilities** | | | | Provision for Long Service Payments | 2,104 | 2,104 | | Deferred Tax Liabilities | 2,611 | 2,275 | | Other Payables | 300 | 392 | | **Net Assets** | **369,808** | **378,795** | | **Total Equity** | **369,808** | **378,795** | [Consolidated Statement of Changes in Equity (Unaudited)](index=35&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity%20%28Unaudited%29) This section provides the unaudited consolidated statement of changes in equity, detailing movements in share capital, reserves, and retained earnings for the six months ended June 30, 2025 Consolidated Statement of Changes in Equity (Unaudited) (For the six months ended June 30, 2025) | Indicator | Share Capital (HK$ thousand) | Capital Reserve (HK$ thousand) | Exchange Reserve (HK$ thousand) | Other Reserve (HK$ thousand) | Retained Profits (HK$ thousand) | Total Equity (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | As at January 1, 2025 | 296,093 | 4,439 | (113) | 12 | 78,364 | 378,795 | | Dividends Approved in Prior Year | – | – | – | – | (50,857) | (50,857) | | Equity-settled Share-based Transactions | – | 72 | – | – | – | 72 | | Profit for the Period | – | – | – | – | 41,773 | 41,773 | | Other Comprehensive Income for the Period | – | – | 25 | – | – | 25 | | As at June 30, 2025 | 296,093 | 4,511 | (88) | 12 | 69,280 | 369,808 | [Condensed Consolidated Cash Flow Statement (Unaudited)](index=37&type=section&id=Condensed%20Consolidated%20Cash%20Flow%20Statement%20%28Unaudited%29) This section presents the unaudited condensed consolidated cash flow statement, summarizing cash flows from operating, investing, and financing activities for the six months ended June 30, 2025 Condensed Consolidated Cash Flow Statement (Unaudited) (For the six months ended June 30, 2025) | Indicator | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 43,359 | 37,093 | | Net Cash Used in Investing Activities | (17,052) | (95,972) | | Net Cash Used in Financing Activities | (51,456) | (50,660) | | Net Decrease in Cash and Cash Equivalents | (25,149) | (109,539) | | Cash and Cash Equivalents at January 1 | 76,285 | 276,335 | | Cash and Cash Equivalents at June 30 | 51,136 | 166,796 | | **Analysis of Cash and Cash Equivalents** | | | | Bank Deposits Maturing Within Three Months | 39,969 | 156,015 | | Cash and Bank Balances | 11,167 | 10,781 | [Notes to the Unaudited Interim Financial Report](index=38&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Financial%20Report) This section provides detailed notes and explanations supporting the unaudited interim financial statements, covering accounting policies, segment information, and financial position details [1 Basis of preparation](index=38&type=section&id=1%20Basis%20of%20preparation) This interim financial report is prepared in accordance with applicable disclosure provisions of the Listing Rules of The Stock Exchange of Hong Kong Limited and HKAS 34 'Interim Financial Reporting' issued by the HKICPA, is unaudited but reviewed by KPMG, and adopts consistent accounting policies with the 2024 annual financial statements - The interim financial report complies with the Listing Rules and HKAS 34 'Interim Financial Reporting'[149](index=149&type=chunk)[153](index=153&type=chunk) - The report is unaudited but has been reviewed by KPMG[154](index=154&type=chunk)[159](index=159&type=chunk) - The accounting policies adopted in preparing the interim financial report are consistent with those used in the 2024 annual financial statements[150](index=150&type=chunk)[153](index=153&type=chunk) [2 Changes in accounting policies](index=39&type=section&id=2%20Changes%20in%20accounting%20policies) The Group applied HKAS 21 (Revised) 'The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability' during the period, but these amendments had no material impact as the Group did not engage in foreign currency transactions where the currency was not exchangeable, and no new standards or interpretations not yet effective were adopted - HKAS 21 (Revised) was applied, but with no material impact[157](index=157&type=chunk)[160](index=160&type=chunk) - No new standards or interpretations not yet effective were adopted during the period[158](index=158&type=chunk)[161](index=161&type=chunk) [3 Revenue](index=40&type=section&id=3%20Revenue) The Group's principal business involves providing Government Electronic Trading Services (GETS) for processing trade-related official documents, with all revenue falling within the scope of HKFRS 15 'Revenue from Contracts with Customers' - The principal business is providing Government Electronic Trading Services (GETS)[162](index=162&type=chunk)[165](index=165&type=chunk) - All revenue falls within the scope of HKFRS 15 'Revenue from Contracts with Customers'[163](index=163&type=chunk)[165](index=165&type=chunk) [4 Segment reporting](index=40&type=section&id=4%20Segment%20reporting) The Group identifies three reportable segments: E-Commerce, Identity Management, and Other Services, with this section presenting revenue and segment profit by recognition timing and segment for the periods ended June 30, 2025 and 2024, and no geographical information is presented as the vast majority of revenue and operating profit are derived from Hong Kong operations - The Group has three reportable segments: E-Commerce, Identity Management, and Other Services[164](index=164&type=chunk)[166](index=166&type=chunk)[167](index=167&type=chunk) Revenue and Profit by Timing of Revenue Recognition and Segment (For the six months ended June 30, 2025) | Segment | Revenue at a Point in Time (HK$ thousand) | Revenue Over Time (HK$ thousand) | Revenue from External Customers (HK$ thousand) | Segment Profit (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | E-Commerce | 67,600 | 16,351 | 83,951 | 27,554 | | Identity Management | 4,413 | 17,218 | 21,631 | 960 | | Other Services | 8,204 | 7,259 | 15,463 | 9,652 | | **Total** | **80,217** | **40,828** | **121,045** | **38,166** | Revenue and Profit by Timing of Revenue Recognition and Segment (For the six months ended June 30, 2024) | Segment | Revenue at a Point in Time (HK$ thousand) | Revenue Over Time (HK$ thousand) | Revenue from External Customers (HK$ thousand) | Segment Profit (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | E-Commerce | 67,113 | 18,098 | 85,211 | 27,140 | | Identity Management | 3,157 | 19,085 | 22,242 | 2,393 | | Other Services | 8,326 | 6,873 | 15,199 | 9,129 | | **Total** | **78,596** | **44,056** | **122,652** | **38,662** | - The vast majority of the Group's revenue and operating profit are derived from Hong Kong operations, so no geographical information is presented[173](index=173&type=chunk) [5 Profit before taxation](index=43&type=section&id=5%20Profit%20before%20taxation) This section details the composition of profit before taxation for the six months ended June 30, 2025, including a breakdown of employee costs, depreciation, and other operating expenses Profit Before Taxation Components (For the six months ended June 30, 2025) | Item | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | **Employee Costs** | | | | Defined Contribution Retirement Plan Contributions | 1,463 | 1,527 | | Equity-settled Share-based Payment Expenses | 72 | 38 | | Salaries, Wages and Other Benefits | 52,771 | 54,267 | | **Total Employee Costs** | **54,306** | **55,832** | | **Depreciation** | | | | Owned Property, Plant and Equipment | 2,868 | 3,244 | | Right-of-use Assets | 1,047 | 1,466 | | **Total Depreciation** | **3,915** | **4,710** | | **Other Operating Expenses** | | | | Auditor's Remuneration | 669 | 657 | | Directors' Fees and Emoluments | 800 | 1,067 | | Equipment Management Fees | 2,460 | 2,451 | | Repair and Maintenance Expenses | 2,889 | 2,728 | | Office Lease and Utilities | 1,880 | 1,845 | | Consulting Fees | 2,140 | 1,436 | | Telecommunication Costs | 869 | 856 | | Promotion and Marketing Expenses | 322 | 260 | | Listing Expenses | 523 | 539 | | Legal and Professional Fees | 950 | 1,099 | | Service Fees Paid to Business Partners | 1,223 | 993 | | Impairment Loss on Trade Receivables and Contract Assets | 824 | 2,129 | | Others | 2,086 | 1,896 | | **Total Other Operating Expenses** | **17,635** | **17,956** | [6 Other net income](index=44&type=section&id=6%20Other%20net%20income) This section outlines the components of other net income for the six months ended June 30, 2025, primarily comprising interest income and net foreign exchange gains/losses, with a positive impact from the reversal of foreign exchange losses to gains during the period Other Net Income (For the six months ended June 30, 2025) | Item | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Interest Income | 9,478 | 11,883 | | Net Foreign Exchange Gain/(Loss) | 3,409 | (90) | | **Total** | **12,887** | **11,793** | [7 Taxation](index=44&type=section&id=7%20Taxation) This section details the tax components for the six months ended June 30, 2025, including current tax (Hong Kong Profits Tax) and deferred tax, with Hong Kong Profits Tax provision calculated at an estimated annual effective rate of 16.5% under the two-tiered profits tax regime Taxation (For the six months ended June 30, 2025) | Item | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Current Tax – Hong Kong Profits Tax | 5,290 | 5,346 | | Deferred Tax | 303 | (36) | | **Income Tax Expense** | **5,593** | **5,310** | - Hong Kong Profits Tax provision is calculated at an estimated annual effective tax rate of **16.5%**[182](index=182&type=chunk)[184](index=184&type=chunk) - The Company is subject to a two-tiered profits tax regime, with the first **HK$2 million** of assessable profits taxed at **8.25%** and the remainder at **16.5%**[183](index=183&type=chunk)[184](index=184&type=chunk) [8 Dividends](index=45&type=section&id=8%20Dividends) This section detailed dividends payable to ordinary equity holders for the six months ended June 30, 2025, including the declared interim dividend and the final dividend approved and paid for the previous financial year Dividends (For the six months ended June 30, 2025) | Item | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Interim Dividend of 3.7 HK cents per share Declared After the Interim Period | 29,401 | 29,401 | | Final Dividend of 6.4 HK cents per share for the Financial Year Ended December 31, 2024, Approved and Paid in the Subsequent Interim Period | 50,857 | 50,062 | - The interim dividend was not recognized as a liability at the end of the reporting period[186](index=186&type=chunk) [9 Earnings per share](index=46&type=section&id=9%20Earnings%20per%20share) This section explains the calculation of basic and diluted earnings per share, which are identical at 5.26 HK cents due to the absence of potential dilutive shares - Basic earnings per share is calculated based on profit attributable to ordinary equity holders of the Company of **HK$41,773,000** and the weighted average number of ordinary shares outstanding during the period of **794,634,000 shares**[188](index=188&type=chunk)[190](index=190&type=chunk) - As the Company has no potential dilutive shares, basic earnings per share is the same as diluted earnings per share, both at **5.26 HK cents**[188](index=188&type=chunk)[190](index=190&type=chunk) [10 Property, plant and equipment](index=46&type=section&id=10%20Property%2C%20plant%20and%20equipment) This section presents the net book value and movements of property, plant, and equipment as of June 30, 2025, including additions, disposals, and depreciation, with major items comprising leasehold improvements, platform hardware and software, and computer and office equipment Movements in Net Book Value of Property, Plant and Equipment (As of June 30, 2025) | Item | Property, Plant and Equipment (HK$ thousand) | Ownership Interests in Land and Buildings Held for Own Use (HK$ thousand) | Other Properties Leased for Own Use (HK$ thousand) | Total (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Net Book Value as at January 1, 2025 | 20,577 | 3,619 | 1,387 | 25,583 | | Additions | 4,960 | – | – | 4,960 | | Disposals | (46) | – | – | (46) | | Depreciation | (2,921) | (487) | (507) | (3,915) | | Net Book Value as at June 30, 2025 | 22,570 | 3,132 | 880 | 26,582 | [11 Deferred taxation](index=47&type=section&id=11%20Deferred%20taxation) This section discloses the components and movements of deferred tax assets and liabilities recognized in the consolidated statement of financial position, primarily arising from depreciation allowances in excess of related depreciation and credit loss provisions Movements in Deferred Tax Assets/(Liabilities) (As of June 30, 2025) | Item | Depreciation Allowances in Excess of Related Depreciation (HK$ thousand) | Credit Loss Provision (HK$ thousand) | Total (HK$ thousand) | | :--- | :--- | :--- | :--- | | As at January 1, 2025 | (2,275) | 606 | (1,669) | | (Charged to)/Credited to Profit or Loss | (336) | 33 | (303) | | As at June 30, 2025 | (2,611) | 639 | (1,972) | Deferred Tax Assets and Liabilities (As of June 30, 2025) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Deferred Tax Assets | 639 | 606 | | Deferred Tax Liabilities | (2,611) | (2,275) | | **Net** | **(1,972)** | **(1,669)** | [12 Trade receivables and contract assets](index=48&type=section&id=12%20Trade%20receivables%20and%20contract%20assets) This section provides details on trade receivables and contract assets as of June 30, 2025, including amounts net of loss allowance and an aging analysis of trade receivables, with all expected to be recovered within one year Trade Receivables and Contract Assets (As of June 30, 2025) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade Receivables, Net of Loss Allowance | 11,383 | 21,259 | | Contract Assets, Net of Loss Allowance | 2,626 | 2,613 | | **Total** | **14,009** | **23,872** | Aging Analysis of Trade Receivables (As of June 30, 2025) | Aging | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Less than One Month | 4,531 | 10,854 | | One to Three Months | 3,754 | 5,096 | | Three to Twelve Months | 3,098 | 5,309 | | **Total** | **11,383** | **21,259** | - All trade receivables and contract assets are expected to be recovered within one year[200](index=200&type=chunk)[202](index=202&type=chunk) [13 Other receivables, prepayments and other contract costs](index=49&type=section&id=13%20Other%20receivables%2C%20prepayments%20and%20other%20contract%20costs) This section states that all other receivables, prepayments, and other contract costs are expected to be recovered or recognized as expenses within one year - All other receivables, prepayments, and other contract costs are expected to be recovered or recognized as expenses within one year[203](index=203&type=chunk)[207](index=207&type=chunk) [14 Trade creditors, contract liabilities and other payables](index=49&type=section&id=14%20Trade%20creditors%2C%20contract%20liabilities%20and%20other%20payables) This section details the composition of trade creditors, contract liabilities, and other payables as of June 30, 2025, including customer deposits, accrued expenses, and lease liabilities, with an aging analysis showing most trade creditors are due within one month Trade Creditors, Contract Liabilities and Other Payables (As of June 30, 2025) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade Creditors | 6,855 | 7,065 | | Customer Deposits Received | 97,763 | 100,151 | | Accrued Expenses and Other Payables | 23,774 | 31,289 | | Contract Liabilities | 21,315 | 10,551 | | Lease Liabilities | 1,193 | 1,506 | | **Total** | **150,900** | **150,562** | | – Non-current | 300 | 392 | | – Current | 150,600 | 150,170 | Aging Analysis of Trade Creditors (As of June 30, 2025) | Aging | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Less than One Month | 6,627 | 6,944 | | One to Three Months | 161 | 121 | | Over Three Months | 67 | – | | **Total** | **6,855** | **7,065** | - Customer deposits received are refundable on demand[212](index=212&type=chunk)[215](index=215&type=chunk) [15 Equity-settled share-based transactions](index=50&type=section&id=15%20Equity-settled%20share-based%20transactions) This section details the terms and conditions of the 2014 Share Option Scheme, including the number of options granted to directors, employees, and former employees, vesting conditions, and contractual life, with fair value calculated using the Black-Scholes model, and no new options granted during H1 2025 - The 2014 Share Option Scheme expired on **May 8, 2024**, but granted share options remain valid[214](index=214&type=chunk)[216](index=216&type=chunk) - Share options typically vest over **12 months (25%)**, **24 months (50%)**, **36 months (75%)**, and **48 months (100%)** from the grant date[219](index=219&type=chunk)[223](index=223&type=chunk)[227](index=227&type=chunk)[231](index=231&type=chunk)[235](index=235&type=chunk)[239](index=239&type=chunk) - The fair value of share options is calculated using the Black-Scholes model, referencing historical volatility and expected dividends[240](index=240&type=chunk)[243](index=243&type=chunk) - No new share options were granted during the six months ended June 30, 2025[242](index=242&type=chunk)[244](index=244&type=chunk) [16 Share capital](index=57&type=section&id=16%20Share%20capital) This section presents the issued and fully paid ordinary share capital as of June 30, 2025, noting that the company's ordinary shares have no par value under Section 135 of the Hong Kong Companies Ordinance and all ordinary shares have equal interests in the company's residual assets Share Capital (As of June 30, 2025) | Item | June 30, 2025 (thousand shares) | June 30, 2025 (HK$ thousand) | December 31, 2024 (thousand shares) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Ordinary Shares, Issued and Fully Paid | 794,634 | 296,093 | 794,634 | 296,093 | - The Company's ordinary shares have no par value, and all ordinary shares have equal interests in the Company's residual assets[248](index=248&type=chunk)[252](index=252&type=chunk) [17 Capital commitments](index=58&type=section&id=17%20Capital%20commitments) As of June 30, 2025, outstanding capital commitments not provided for in the financial statements amounted to HK$416,000, primarily for computer equipment procurement, a significant reduction from HK$1,936,000 at year-end 2024 Capital Commitments (As of June 30, 2025) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Capital Commitments | 416 | 1,936 | - Capital commitments are primarily related to the Group's procurement of computer equipment[249](index=249&type=chunk)[253](index=253&type=chunk) [18 Charges on assets and contingent liabilities](index=58&type=section&id=18%20Charges%20on%20assets%20and%20contingent%20liabilities) Under contract terms with the government, the Group obtained two bank guarantees totaling HK$2,176,000 for proper contract performance, secured by deposit charges, with no other asset charges - Two bank guarantees totaling **HK$2,176,000** are secured by deposit charges to ensure the Group's performance[250](index=250&type=chunk)[254](index=254&type=chunk) [19 Non-adjusting events after the reporting period](index=58&type=section&id=19%20Non-adjusting%20events%20after%20the%20reporting%20period) Subsequent to the reporting period, the directors recommended an interim dividend of 3.7 HK cents per share for the six months ended June 30, 2025, amounting to HK$29,401,000, which was not recognized as a liability at the reporting period end - The directors recommended an interim dividend of **3.7 HK cents** per share for the six months ended June 30, 2025, amounting to **HK$29,401,000**[251](index=251&type=chunk)[255](index=255&type=chunk) - This dividend was not recognized as a liability at the end of the reporting period[251](index=251&type=chunk)[255](index=255&type=chunk) [Property Held for Own Use](index=59&type=section&id=Property%20Held%20for%20Own%20Use) This section lists the property held by the company for its own use, including its address and approximate gross floor area Property Held for Own Use (As of June 30, 2025) | Address | Approximate Gross Floor Area (square feet) | | :--- | :--- | | 11th and 12th Floors, Block B, Regent Centre, 63 Wo Yi Hop Road, Kwai Chung, Hong Kong | 44,532 | [Investor Relations and Key Dates](index=60&type=section&id=Investor%20Relations%20and%20Key%20Dates) This section provides important dates for investors, company listing information, and contact details for investor relations [Financial Calendar](index=60&type=section&id=Financial%20Calendar) This section provides key financial dates, including the period for suspension of share transfer registration and the interim dividend payment date Financial Calendar | Item | Date | | :--- | :--- | | Suspension of Register of Members | September 22, 2025 – September 24, 2025 (both days inclusive) | | Interim Dividend Payment Date | Expected to be paid on October 8, 2025 | [Listings](index=60&type=section&id=Listings) The company's shares have been listed on the Main Board of The Stock Exchange of Hong Kong Limited since October 28, 2005 - The Company's shares have been listed on the Main Board of The Stock Exchange of Hong Kong since **October 28, 2005**[262](index=262&type=chunk)[264](index=264&type=chunk) [2025 Interim Report](index=60&type=section&id=2025%20Interim%20Report) Printed English and Chinese versions of the 2025 Interim Report are available and can also be downloaded from the company's website and HKEXnews website - The 2025 Interim Report is available in English and Chinese versions for download on the company's website and HKEXnews website[263](index=263&type=chunk)[265](index=265&type=chunk) [Stock Code](index=60&type=section&id=Stock%20Code) The company's stock code on The Stock Exchange of Hong Kong Limited is 536 - The Company's stock code is **536**[264](index=264&type=chunk)[266](index=266&type=chunk) [Investor Relations](index=60&type=section&id=Investor%20Relations) The company encourages two-way communication with institutional and individual investors, providing detailed contact information for Ms. Winnie Wong, Vice President (Marketing & Corporate Communications) - The Investor Relations contact person is Ms. Winnie Wong, Vice President (Marketing & Corporate Communications)[264](index=264&type=chunk)[266](index=266&type=chunk) [Corporate Information](index=61&type=section&id=Corporate%20Information) This section provides essential corporate details, including the Board of Directors, Board Committees, senior management, and contact information [Board of Directors](index=61&type=section&id=Board%20of%20Directors) This section lists the members of the company's Board of Directors, including the Chairman and Non-executive Directors, Non-executive Directors, Independent Non-executive Directors, and Executive Directors - The Board of Directors includes Dr. Lee Nai Hsi (Chairman and Non-executive Director), Dr. Lee Kwok Bun (Non-executive Director), Mr. Yuen Wing Sang (Non-executive Director), Mr. Zhai Diqiang (Independent Non-executive Director), Ms. Cheung Ho Ling (Independent Non-executive Director), Mr. Lam Suen Wu (Independent Non-executive Director), Mr. Yuen Man Chung (Executive Director and Chief Executive Officer), and Mr. Cheng Chun Chung (Executive Director and Chief Operating Officer)[267](index=267&type=chunk)[268](index=268&type=chunk)[269](index=269&type=chunk)[270](index=270&type=chunk) - Mr. Chow Tak Hee retired as an Independent Non-executive Director on **May 16, 2025**[268](index=268&type=chunk)[270](index=270&type=chunk) [Board Committees](index=61&type=section&id=Board%20Committees) This section lists the Board's committees and their members, including the Audit and Governance Committee, Remuneration Committee, and Nomination Committee, noting the dissolution of the Investment Committee on May 16, 2025 - Board committees include the Audit and Governance Committee, Remuneration Committee, and Nomination Committee[268](index=268&type=chunk)[270](index=270&type=chunk) - The Investment Committee was dissolved on **May 16, 2025**[269](index=269&type=chunk)[270](index=270&type=chunk) - Mr. Zhai Diqiang was appointed as Chairman of the Remuneration Committee[269](index=269&type=chunk)[270](index=270&type=chunk) [Senior Management](index=62&type=section&id=Senior%20Management) This section lists the company's senior management, including Mr. Yuen Man Chung (Chief Executive Officer), Mr. Cheng Chun Chung (Chief Operating Officer) and Ms. Pang Kit Fong (Chief Financial Officer) - Senior management includes Mr. Yuen Man Chung (Chief Executive Officer), Mr. Cheng Chun Chung (Chief Operating Officer), and Ms. Pang Kit Fong (Chief Financial Officer)[271](index=271&type=chunk)[272](index=272&type=chunk) [Company Secretary](index=62&type=section&id=Company%20Secretary) The company secretary is Mr. Ho Kai Tak - The Company Secretary is Mr. Ho Kai Tak[271](index=271&type=chunk)[272](index=272&type=chunk) [Auditor](index=62&type=section&id=Auditor) The company's auditor is KPMG, a registered Public Interest Entity Auditor under the Accounting and Financial Reporting Council Ordinance - The auditor is KPMG[271](index=271&type=chunk)[272](index=272&type=chunk) [Bankers](index=62&type=section&id=Bankers) The company's bankers are Dah Sing Bank Limited and The Hongkong and Shanghai Banking Corporation Limited - The bankers are Dah Sing Bank Limited and The Hongkong and Shanghai Banking Corporation Limited[271](index=271&type=chunk)[272](index=272&type=chunk) [Registered Office](index=62&type=section&id=Registered%20Office) The company's registered office is located at 11th and 12th Floors, Block B, Regent Centre, 63 Wo Yi Hop Road, Kwai Chung, Hong Kong - The registered office is located at 11th and 12th Floors, Block B, Regent Centre, 63 Wo Yi Hop Road, Kwai Chung, Hong Kong[272](index=272&type=chunk)[273](index=273&type=chunk) [Share Registrar](index=62&type=section&id=Share%20Registrar) The company's share registrar is Hong Kong Central Share Registry Limited, located at Rooms 1712–1716, 17th Floor, Hopewell Centre, 183 Queen's Road East, Wanchai, Hong Kong - The share registrar is Hong Kong Central Share Registry Limited[272](index=272&type=chunk)[273](index=273&type=chunk)

[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 section provides an overview of the Group's operational performance, financial position, and future outlook. [Business Review](index=3&type=section&id=%E4%B8%9A%E5%8A%A1%E5%9B%9E%E9%A1%BE) The Group's foundation piling business demonstrated strong performance during the review period, achieving significant growth in turnover and profit, with several major contracts in hand Key Financial Data for Foundation Piling Business | Indicator | As of June 30, 2025 (HKD) | As of June 30, 2024 (HKD) | Change | | :--- | :--- | :--- | :--- | | Turnover | 1.15 billion | 1.009 billion | 14% increase | | Profit | 38 million | 19 million | 100% increase | - Major contracts include the Sai Yee Street commercial project; housing/residential projects in Mei Tin, Shap Pat Heung, Choi Shun Street, Kwok Shui Road, Tung Chung Area 50, Rose Street, Kai Tak Area 2A Site 2; West Kowloon Married Police Quarters; and Tseung Kwan O Integrated Market[7](index=7&type=chunk) [Outlook](index=3&type=section&id=%E5%89%8D%E6%99%AF) The company anticipates a challenging construction industry in 2025 with slow real estate market recovery, but the Hong Kong Northern Metropolis Development Plan offers significant opportunities for infrastructure and property development - The outlook for the construction industry in 2025 remains challenging, with the real estate market not yet significantly rebounding[8](index=8&type=chunk) - The government's proposed Northern Metropolis Development will be a "new engine" for Hong Kong's future, with accelerated implementation driving infrastructure and property development, providing substantial opportunities[8](index=8&type=chunk) - The company is committed to continuous improvement, enhancing operational efficiency and effectiveness to seize emerging opportunities[8](index=8&type=chunk) [Financial Review](index=4&type=section&id=%E8%B4%A2%E5%8A%A1%E5%9B%9E%E9%A1%BE) As of June 30, 2025, the Group's cash on hand increased, total assets and net assets slightly decreased, total liabilities reduced, maintaining a net cash position with zero gearing ratio Key Financial Position Indicators | Indicator | June 30, 2025 (HKD) | December 31, 2024 (HKD) | Change | | :--- | :--- | :--- | :--- | | Cash on Hand | 930 million | 887 million | 4.85% increase | | Total Assets | 1.858 billion | 1.915 billion | 2.98% decrease | | Net Assets | 1.19 billion | 1.239 billion | 3.95% decrease | | Total Liabilities | 668 million | 676 million | 1.18% decrease | | Interest-bearing Borrowings | 92 million | 104 million | 11.54% decrease | - The Group maintains a **net cash position** with a **zero gearing ratio**[10](index=10&type=chunk) [Financing and Financial Policies](index=4&type=section&id=%E8%9E%8D%E8%B5%84%E5%8F%8A%E8%B4%A2%E5%8A%A1%E6%94%BF%E7%AD%96) The Group maintains prudent financing and financial policies, a robust capital structure, and ample cash flow, with surplus funds primarily held in bank deposits and currency risks closely monitored - Maintains **prudent financing and financial policies**, a **robust capital structure**, and **ample cash flow**[11](index=11&type=chunk) - Surplus funds are held as deposits with leading banks, and borrowings are denominated in HKD with floating interest rates[11](index=11&type=chunk) - Currency risks are closely monitored, with forward contracts considered when necessary[11](index=11&type=chunk) [Capital Expenditure and Commitments](index=4&type=section&id=%E8%B5%84%E6%9C%AC%E5%BC%80%E6%94%AF%E5%8F%8A%E8%B5%84%E6%9C%AC%E6%89%BF%E6%8B%85) During the review period, the Group invested HKD 4 million in machinery and equipment and had capital commitments of HKD 3 million, primarily funded by internal resources Capital Expenditure and Commitments | Indicator | Amount (HKD) | | :--- | :--- | | Investment for six months ended June 30, 2025 | 4 million | | Capital Commitments as of June 30, 2025 | 3 million | - Capital expenditure is primarily funded by **internal resources**[12](index=12&type=chunk) [Pledge of Assets](index=4&type=section&id=%E8%B5%84%E4%BA%A7%E6%8A%B5%E6%8A%BC) As of June 30, 2025, office properties with a book value of approximately HKD 103 million and bank deposits of HKD 5 million were pledged to banks as security for installment loans Pledged Assets | Asset Type | Amount (HKD) | | :--- | :--- | | Office Properties | 103 million | | Bank Deposits | 5 million | - These assets are pledged to banks as security for the Group's installment loans[13](index=13&type=chunk) [Contingent Liabilities](index=4&type=section&id=%E6%88%96%E7%84%B6%E8%B4%9F%E5%80%BA) The Group's contingent liabilities related to corporate guarantees for performance bonds decreased from approximately HKD 354 million as of December 31, 2024, to approximately HKD 288 million as of June 30, 2025 Changes in Contingent Liabilities | Indicator | June 30, 2025 (HKD) | December 31, 2024 (HKD) | Change | | :--- | :--- | :--- | :--- | | Guarantees related to performance bonds | 288 million | 354 million | 18.64% decrease | [Remuneration Policy and Employment](index=5&type=section&id=%E8%96%AA%E9%85%AC%E6%8C%87%E5%BC%95%E5%8F%8A%E8%81%98%E7%94%A8) As of June 30, 2025, the Group employed approximately 716 staff, with remuneration policies based on market levels and employee performance, offering benefits such as provident funds, medical insurance, training, and share options Number of Employees | Date | Number of Employees | | :--- | :--- | | June 30, 2025 | Approximately 716 employees | - Remuneration policy is primarily determined based on prevailing market salary levels and the performance of each business unit and relevant employees[15](index=15&type=chunk) - Other benefits provided include provident funds, medical insurance, and training, with employees also eligible for share options under the share option scheme[15](index=15&type=chunk) [Interim Dividend](index=5&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board has resolved to declare an interim dividend of HKD 0.02 per share for the six months ended June 30, 2025, doubling from the same period last year Interim Dividend | Period | Dividend Per Share (HKD) | | :--- | :--- | | Six months ended June 30, 2025 | 0.02 | | Six months ended June 30, 2024 | 0.01 | - The interim dividend will be paid on **September 26, 2025**, to shareholders whose names appear on the register of members on **September 5, 2025**[16](index=16&type=chunk) [Closure of Register of Members](index=5&type=section&id=%E6%9A%82%E5%81%9C%E5%8A%9E%E7%90%86%E8%82%A1%E4%BB%BD%E8%BF%87%E6%88%B7%E7%99%BB%E8%AE%B0%E6%89%8B%E7%BB%AD) To determine eligibility for the interim dividend, the company will suspend the registration of share transfers from September 4 to September 5, 2025 - The registration of share transfers will be suspended from **Thursday, September 4, 2025**, to **Friday, September 5, 2025**[17](index=17&type=chunk) - All share transfer documents must be lodged with the Hong Kong Share Registrar no later than **4:30 p.m. on Wednesday, September 3, 2025**[17](index=17&type=chunk) [Corporate Governance](index=6&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) This section details the company's adherence to corporate governance principles and the structure of its oversight committees. [Compliance Statement](index=6&type=section&id=%E5%90%88%E8%A7%84%E5%A3%B0%E6%98%8E) The company has fully complied with the Corporate Governance Code set out in Appendix C1 of the HKEX Listing Rules during the review period and up to the report date - The company has fully complied with the code provisions of the Corporate Governance Code set out in Appendix C1 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[20](index=20&type=chunk) [Audit Committee](index=6&type=section&id=%E5%AE%A1%E6%A0%B8%E5%A7%94%E5%91%98%E4%BC%9A) The Audit Committee, comprising four independent non-executive directors with Mr. Li Kit Chi as Chairman, is responsible for reviewing and overseeing the Group's financial reporting, risk management, internal control systems, and compliance - The Audit Committee comprises four independent non-executive directors: Mr. Li Kit Chi (Chairman), Mr. Lung Tze Ming, Ms. Kwok Man Wai, and Ms. Yeung Ching[21](index=21&type=chunk) - Its primary responsibilities include reviewing and overseeing the financial reporting system, risk management, and internal control systems of the Company and its subsidiaries, reviewing the Group's financial information and compliance, and providing advice and recommendations to the Board[21](index=21&type=chunk) - The unaudited condensed interim financial statements for the six months ended June 30, 2025, have been reviewed by the Audit Committee[22](index=22&type=chunk) [Model Code](index=6&type=section&id=%E6%A0%87%E5%87%86%E5%AE%88%E5%88%99) The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules, and all directors confirmed full compliance during the review period - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules as the code of conduct for directors' securities transactions[23](index=23&type=chunk) - All directors confirmed that they have fully complied with the required standards set out in the Model Code during the review period[23](index=23&type=chunk) [Other Information](index=7&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) This section provides details on directors' and substantial shareholders' interests, share option schemes, and securities transactions. [Directors' and Chief Executive's Interests and Short Positions in Shares and Underlying Shares](index=7&type=section&id=%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%91%98%E4%BA%8E%E8%82%A1%E4%BB%BD%E5%8F%8A%E7%9B%B8%E5%85%B3%E8%82%A1%E4%BB%BD%E4%B9%8B%E6%9D%83%E7%9B%8A%E5%8F%8A%E5%A5%BD%E5%80%89) As of June 30, 2025, Mr. Fung Chiu Chak, Victor indirectly beneficially owned 168,380,000 shares, with no other directors or chief executives holding disclosable interests or short positions Directors' Long Positions in Shares | Director Name | Number of Shares Indirectly Beneficially Owned | | :--- | :--- | | Mr. Fung Chiu Chak, Victor | 168,380,000 shares | - Save for Mr. Fung Chiu Chak, Victor, no other directors or chief executives held any interests or short positions in the shares, underlying shares, or debentures of the Company or any of its associated corporations that are required to be recorded or notified to the Company and the Stock Exchange[25](index=25&type=chunk) [Share Option Scheme](index=8&type=section&id=%E8%B4%AD%E8%82%A1%E6%9D%83%E8%AE%A1%E5%88%92) The company operates a share option scheme to incentivize eligible participants; all 155,100,000 granted options lapsed during the six months ended June 30, 2025, with no outstanding options at period-end - The company currently operates a share option scheme adopted on **December 3, 2020**, aimed at providing incentives and rewards to eligible participants who contribute to the Group's successful operations[27](index=27&type=chunk) Movements in Share Options (Six Months Ended June 30, 2025) | Participant Category | Outstanding as of January 1, 2025 | Lapsed as of June 30, 2025 | Outstanding as of June 30, 2025 | | :--- | :--- | :--- | :--- | | Directors (Fung Chiu Chak, Victor; Chiu Chin Hung; Lau Kin Fai) | 43,000,000 options | (43,000,000) options | – | | Employees (Total) | 112,100,000 options | (112,100,000) options | – | | **Total** | **155,100,000 options** | **(155,100,000) options** | **–** | - All **155,100,000 share options** lapsed effective **May 25, 2025**, and there were **no outstanding share options** under the scheme as of **June 30, 2025**[31](index=31&type=chunk) [Substantial Shareholders' Interests in Shares and Underlying Shares](index=11&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E6%96%BC%E8%82%A1%E4%BB%BD%E5%8F%8A%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E4%B9%8B%E6%9D%83%E7%9B%8A) As of June 30, 2025, Blackstone Group Management L.L.C. and its associates, Times Holdings II Limited, Chen's Group International Limited and its associates, China Communications Construction Company Limited and its associates, and Mr. Fung Chiu Chak, Victor and his associates were substantial shareholders holding 5% or more of the company's issued share capital Substantial Shareholders' Long Positions in Shares (As of June 30, 2025) | Name | Capacity | Number of Shares Held | Approximate Percentage of Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Blackstone Group Management L.L.C. and others(1) | Interest in controlled corporation | 2,356,146,781 shares | 70.00% | | Times Holdings II Limited | Beneficial owner | 2,291,316,850 shares | 68.07% | | Chen Wai Wai and others(3) | Executor or administrator | 235,106,000 shares | 6.98% | | Chen's Group International Limited and others(4) | Interest in controlled corporation | 235,106,000 shares | 6.98% | | China Communications Construction Company Limited and others(5) | Interest in controlled corporation | 171,000,000 shares | 5.08% | | Mr. Fung Chiu Chak, Victor(6) | Interest in controlled corporation | 168,380,000 shares | 5.00% | [Purchase, Sale or Redemption of the Company's Listed Securities](index=12&type=section&id=%E8%B4%AD%E4%B9%B0%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B5%8E%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B9%8B%E4%B8%8A%E5%B8%82%E8%AF%81%E5%88%B8) Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the reporting period - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the period[37](index=37&type=chunk) [Unaudited Condensed Interim Financial Statements](index=13&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the Group's unaudited condensed interim financial statements, including the consolidated statement of profit or loss, comprehensive income, financial position, changes in equity, and cash flows. [Consolidated Statement of Profit or Loss](index=13&type=section&id=%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the Group achieved significant growth in both revenue and profit for the period, with basic earnings per share increasing to 1.01 HK cents Key Data from Consolidated Statement of Profit or Loss | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 1,150,289 | 1,009,389 | +13.96% | | Gross Profit | 54,130 | 31,093 | +74.08% | | Profit Before Tax | 33,962 | 10,373 | +227.41% | | Profit for the Period | 34,141 | 10,704 | +218.96% | | Basic Earnings Per Share | 1.01 HK cents | 0.32 HK cents | +215.63% | [Consolidated Statement of Comprehensive Income](index=14&type=section&id=%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the Group's total comprehensive income for the period significantly increased to 34,834 thousand HKD, primarily driven by profit growth and a positive shift in exchange differences Key Data from Consolidated Statement of Comprehensive Income | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Profit for the Period | 34,141 | 10,704 | +218.96% | | Exchange differences arising from translation of overseas operations | 693 | (567) | Shift from negative to positive | | Total Comprehensive Income for the Period | 34,834 | 10,137 | +243.63% | [Consolidated Statement of Financial Position](index=15&type=section&id=%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, the Group's total non-current and current assets both decreased, while current liabilities slightly increased, resulting in a reduction in both net current assets and net assets Key Data from Consolidated Statement of Financial Position | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 211,567 | 240,577 | -12.06% | | Total Current Assets | 1,646,065 | 1,674,916 | -1.72% | | Total Current Liabilities | 582,765 | 574,479 | +1.44% | | Net Current Assets | 1,063,300 | 1,100,437 | -3.37% | | Net Assets | 1,189,907 | 1,239,224 | -3.98% | [Consolidated Statement of Changes in Equity](index=17&type=section&id=%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) For the six months ended June 30, 2025, the Group's total equity changed due to increased profit for the period and transfer of share option reserve upon lapse, but decreased due to dividends paid Key Data from Consolidated Statement of Changes in Equity | Indicator | January 1, 2025 (thousand HKD) | June 30, 2025 (thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Total Equity | 1,239,224 | 1,189,907 | -3.98% | | Profit for the Period | – | 34,141 | +34,141 | | Transfer of share option reserve upon lapse of share options | – | – | Share option reserve decreased by 27,457, retained profits increased by 27,457 | | Dividends Declared and Paid | – | (84,151) | -84,151 | [Consolidated Statement of Cash Flows](index=19&type=section&id=%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the six months ended June 30, 2025, the Group's net cash flow from operating activities significantly increased, cash flow from investing activities shifted from net outflow to net inflow, but net cash outflow from financing activities increased, leading to a net increase in cash and cash equivalents Key Data from Consolidated Statement of Cash Flows | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 136,245 | 15,245 | +793.73% | | Net Cash Flow from Investing Activities | 24,294 | (141,795) | Shift from net outflow to net inflow | | Net Cash Flow from Financing Activities | (105,037) | (71,861) | Net outflow increased by 46.16% | | Net Increase/(Decrease) in Cash and Cash Equivalents | 55,502 | (198,411) | Shift from net decrease to net increase | | Cash and Cash Equivalents at End of Period | 787,693 | 369,318 | +113.29% | [Notes to the Unaudited Condensed Interim Financial Statements](index=21&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section provides detailed notes and explanations supporting the unaudited condensed interim financial statements. [1. Company Information](index=21&type=section&id=1.%20%E5%85%AC%E5%8F%B8%E8%B5%84%E6%96%99) Tysan Group Holdings Limited primarily engages in foundation piling, site investigation, and property development and investment, with its shares listed on the Main Board of the Hong Kong Stock Exchange, and its ultimate holding company is The Blackstone Group Inc - The company and its subsidiaries are principally engaged in **foundation piling and site investigation**, as well as **property development and investment**[57](index=57&type=chunk) - The company's shares are listed on the **Main Board of The Stock Exchange of Hong Kong Limited**[57](index=57&type=chunk) - The company's ultimate holding company is **The Blackstone Group Inc.**[57](index=57&type=chunk) [2. Basis of Preparation and Changes in Accounting Policies](index=21&type=section&id=2.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96%E5%8F%8A%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E4%B9%8B%E8%AE%8A%E5%8B%95) The unaudited condensed interim financial statements are prepared in accordance with the HKEX Listing Rules and HKAS 34, with consistent accounting policies from the previous year, and newly adopted HKFRS amendments having no significant financial impact - The statements are prepared in accordance with the applicable disclosure provisions of the Listing Rules of The Stock Exchange of Hong Kong Limited and HKAS 34 'Interim Financial Reporting' issued by the Hong Kong Institute of Certified Public Accountants[58](index=58&type=chunk) - The accounting policies adopted in the preparation of these statements are consistent with those applied in the consolidated financial statements for the year ended December 31, 2024[58](index=58&type=chunk) - The adoption of the revised Hong Kong Financial Reporting Standards has had no significant financial impact on the Group's unaudited condensed interim financial statements[60](index=60&type=chunk) [3. Segment Information](index=22&type=section&id=3.%20%E5%88%86%E9%A1%9E%E8%B3%87%E6%96%99) The Group's operating segments are foundation piling, property development and investment, and corporate and others, with foundation piling being the primary revenue source and achieving significant profit growth in the first half of 2025 - The Group's operating segments are organized and managed independently based on their business nature and the products and services provided[61](index=61&type=chunk) Segment Revenue and Results (Six Months Ended June 30) | Segment | 2025 Revenue (thousand HKD) | 2024 Revenue (thousand HKD) | 2025 Results (thousand HKD) | 2024 Results (thousand HKD) | | :--- | :--- | :--- | :--- | :--- | | Foundation Piling | 1,150,289 | 1,009,389 | 38,093 | 18,761 | | Property Development and Investment | – | – | (434) | (473) | | Corporate and Others | – | – | (15,804) | (19,005) | | **Consolidated** | **1,150,289** | **1,009,389** | **21,855** | **(717)** | [4. Revenue](index=23&type=section&id=4.%20%E6%94%B6%E7%9B%8A) The Group's revenue primarily derives from construction services under customer contracts, totaling 1,150,289 thousand HKD for the six months ended June 30, 2025, all from the Hong Kong market and recognized over time as services are transferred Revenue Analysis (Six Months Ended June 30) | Revenue Source | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Revenue from customer contracts | 1,150,139 | 1,009,389 | | Gross rental income from machinery leasing | 150 | – | | **Total** | **1,150,289** | **1,009,389** | - All revenue is derived from construction services in the **Hong Kong market** and recognized **over time** as services are transferred[65](index=65&type=chunk)[66](index=66&type=chunk) [5. Other Income and Gains](index=25&type=section&id=5.%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E7%9B%88%E5%88%A9) For the six months ended June 30, 2025, the Group's total other income and gains amounted to 19,124 thousand HKD, mainly comprising interest income, scrap sales, and reversal of impairment on trade receivables, but decreased compared to the same period last year Other Income and Gains (Six Months Ended June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Interest income | 14,266 | 14,380 | | Sales of scrap materials | 3,560 | 2,482 | | Sales of site facilities | – | 4,200 | | Insurance claims | – | 1,287 | | Government grants | 66 | – | | Exchange gains, net | 233 | 8 | | Reversal of impairment on trade receivables | 785 | 76 | | Others | 214 | 250 | | **Total** | **19,124** | **22,683** | [6. Profit Before Tax](index=25&type=section&id=6.%20%E9%99%A4%E7%A8%85%E5%89%8D%E6%BA%A2%E5%88%A9) The Group's profit before tax is achieved after deducting items such as depreciation, loss on disposal and write-off, and impairment of contract assets, while benefiting from reversal of impairment on trade receivables and foreign exchange gains Profit Before Tax Adjustments (Six Months Ended June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 25,725 | 28,930 | | Depreciation of right-of-use assets | 7,930 | 7,575 | | Loss on disposal and write-off of property, plant and equipment items | 430 | 982 | | Reversal of impairment on trade receivables | (785) | (76) | | Impairment of contract assets | 23 | 109 | | Foreign exchange differences, net | (233) | (8) | [7. Income Tax](index=26&type=section&id=7.%20%E6%89%80%E5%BE%97%E7%A8%85) Hong Kong profits tax is provided at 16.5% (with a portion at 8.25%), and other regions in China are taxed at applicable rates; for the six months ended June 30, 2025, the Group obtained a total tax credit of 179 thousand HKD - Hong Kong profits tax is provided at **16.5%** on the estimated assessable profits arising in Hong Kong during the period, with a portion of the first **HKD 2,000,000** for eligible entities taxed at **8.25%**[71](index=71&type=chunk) Income Tax Credit (Six Months Ended June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Current tax provision (Hong Kong) | 1,790 | 2,238 | | Current tax provision (Other regions) | – | 8 | | Deferred tax | (1,969) | (2,577) | | **Total Tax Credit for the Period** | **(179)** | **(331)** | [8. Dividends](index=27&type=section&id=8.%20%E8%82%A1%E6%81%AF) The Board has approved an interim dividend of HKD 0.02 per ordinary share for the six months ended June 30, 2025, totaling approximately 67,321 thousand HKD, an increase from the same period last year Dividend Declaration (Six Months Ended June 30) | Dividend Type | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Interim dividend (HKD 0.02 per share) | 67,321 | 33,660 | - The final dividend for the year ended December 31, 2024 (HKD 0.025 per share, totaling approximately **84,151 thousand HKD**) was approved on **May 26, 2025**, and paid on **June 24, 2025**[77](index=77&type=chunk) - The interim dividend has not been recognized in the unaudited condensed interim financial statements[77](index=77&type=chunk) [9. Earnings Per Share Attributable to Ordinary Equity Holders of the Company](index=27&type=section&id=9.%20%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%99%AE%E9%80%9A%E8%82%A1%E8%82%A1%E6%9D%B1%E6%87%89%E5%8D%A0%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) For the six months ended June 30, 2025, basic earnings per share were 1.01 HK cents, consistent with diluted earnings per share, as share options had no dilutive effect on basic earnings per share Earnings Per Share (Six Months Ended June 30) | Indicator | 2025 (HK cents) | 2024 (HK cents) | | :--- | :--- | :--- | | Basic Earnings Per Share | 1.01 | 0.32 | | Diluted Earnings Per Share | 1.01 | 0.32 | - Basic earnings per share are calculated based on the profit for the period attributable to ordinary equity holders of the Company of **34,141,000 HKD** and **3,366,035,709 ordinary shares** in issue during the period[75](index=75&type=chunk) - No diluted adjustment has been made to the presented basic earnings per share as the effect of share options is not dilutive to the basic earnings per share amount presented[75](index=75&type=chunk) [10. Property, Plant and Equipment](index=27&type=section&id=10.%20%E7%89%A9%E6%A5%AD%E3%80%81%E6%A9%9F%E5%99%A8%E5%8F%8A%E8%A8%AD%E5%82%99) During the period, the Group acquired property, plant, and equipment totaling 3,632 thousand HKD and disposed of or wrote off items with a net book value of 443 thousand HKD, resulting in a loss of 430 thousand HKD Movements in Property, Plant and Equipment (Six Months Ended June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Additions to property, plant and equipment | 3,632 | 19,894 | | Net book value of disposals and write-offs | 443 | 1,161 | | Net loss on disposals and write-offs | 430 | 982 | [11. Trade Receivables](index=28&type=section&id=11.%20%E6%87%89%E6%94%B6%E8%B2%BF%E6%98%93%E8%B3%A6%E6%AC%BE) The Group's credit policy adheres to industry standards, with an average credit period of within 30 days; as of June 30, 2025, the net book value of trade receivables was 215,213 thousand HKD, with the vast majority due within 90 days - The Group's credit policy adheres to local industry standards, with an average general credit period of **within 30 days** granted to trade customers[78](index=78&type=chunk) Ageing Analysis of Trade Receivables (As of Reporting Period End) | Ageing | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Within 90 days | 211,714 | 147,078 | | 91 to 180 days | 2,851 | 432 | | 181 to 365 days | – | – | | Over 365 days | 648 | 652 | | **Total** | **215,213** | **148,162** | [12. Trade Payables, Retention Payables, Accruals and Provisions](index=29&type=section&id=12.%20%E6%87%89%E4%BB%98%E8%B2%BF%E6%98%93%E8%B3%A6%E6%AC%BE%E3%80%81%E6%87%89%E4%BB%98%E4%BF%9D%E5%9B%BA%E9%87%91%E3%80%81%E6%87%89%E8%A8%88%E6%AC%BE%E9%A0%85%E5%8F%8A%E6%92%A5%E5%82%99) As of June 30, 2025, the Group's total trade payables were 221,004 thousand HKD, with the majority due within 90 days; retention payables, accruals, and provisions totaled 279,003 thousand HKD Ageing Analysis of Trade Payables (As of Reporting Period End) | Ageing | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Within 90 days | 220,784 | 252,951 | | 91 to 180 days | 196 | 180 | | Over 180 days | 24 | 23 | | **Total Trade Payables** | **221,004** | **253,154** | Other Payables (As of Reporting Period End) | Item | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Retention Payables | 52,924 | 49,435 | | Accruals | 199,621 | 186,175 | | Provisions | 28,458 | 26,307 | | **Total** | **502,007** | **515,071** | - The general repayment period for trade payables is **90 days**, and retention payables for construction contracts are typically due within **one year** after the completion of construction works[81](index=81&type=chunk) [13. Share Capital](index=29&type=section&id=13.%20%E8%82%A1%E6%9C%AC) As of June 30, 2025, the company's authorized share capital was 600,000 thousand HKD, and its issued and fully paid share capital was 336,603 thousand HKD, comprising 3,366,035,709 ordinary shares of HKD 0.10 each Share Capital Structure (As of Reporting Period End) | Item | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Authorized Share Capital (6,000,000,000 shares) | 600,000 | 600,000 | | Issued and Fully Paid Share Capital (3,366,035,709 shares) | 336,603 | 336,603 | [14. Contingent Liabilities](index=30&type=section&id=14.%20%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group's guarantees for performance bonds related to construction projects amounted to 287,509 thousand HKD, a decrease from the end of 2024 Contingent Liabilities (As of Reporting Period End) | Item | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Guarantees for performance bonds related to construction projects | 287,509 | 354,156 | [15. Commitments](index=30&type=section&id=15.%20%E6%89%BF%E6%93%94) As of June 30, 2025, the Group had contractual commitments of 2,760 thousand HKD related to property, plant, and equipment Contractual Commitments (As of Reporting Period End) | Item | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Property, Plant and Equipment | 2,760 | 2,431 | [16. Related Party Transactions and Balances](index=30&type=section&id=16.%20%E9%97%9C%E9%80%A3%E4%BA%BA%E5%A3%AB%E4%BA%A4%E6%98%93%E5%8F%8A%E7%B5%90%E5%AD%98) For the period ended June 30, 2025, key management personnel remuneration was 22,208 thousand HKD; contract assets included 236 thousand HKD receivable from Tysan Building Construction Company Limited, controlled by Executive Director Mr. Fung Chiu Chak, Victor Related Party Transactions (For the Period Ended June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Key management personnel remuneration | 22,208 | 22,181 | Related Party Balances (As of Reporting Period End) | Item | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Amount due from Tysan Building Construction Company Limited (Contract assets) | 236 | 236 | - Tysan Building Construction Company Limited is controlled by Mr. Fung Chiu Chak, Victor, an Executive Director of the Company[86](index=86&type=chunk) [Company Information](index=31&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) This section provides essential contact and governance details for the company, including its board, committees, and professional advisors. [Board of Directors](index=31&type=section&id=%E8%91%A3%E4%BA%8B%E5%B1%80) The Board of Directors comprises executive, non-executive, and independent non-executive directors, with Mr. Wai Tsang Pang as Chairman and Mr. Fung Chiu Chak, Victor as Vice Chairman - Executive Directors include Mr. Fung Chiu Chak, Victor (Vice Chairman), Mr. Chiu Chin Hung, and Mr. Lau Kin Fai[87](index=87&type=chunk) - Non-executive Directors include Mr. Wai Tsang Pang (Chairman), Mr. Cao Wenwei, Mr. Yuen Pak Man, Ms. Gu Ye, and Ms. Hou Xiangjia[87](index=87&type=chunk) - Independent Non-executive Directors include Mr. Lung Tze Ming, Mr. Li Kit Chi, Ms. Kwok Man Wai, and Ms. Yeung Ching[87](index=87&type=chunk) [Committees](index=31&type=section&id=%E5%A7%94%E5%91%98%E4%BC%9A) The company has an Audit Committee, Remuneration Committee, and Nomination Committee, each with a defined chairman and members - The Audit Committee is chaired by Mr. Li Kit Chi, with members including Mr. Lung Tze Ming, Ms. Kwok Man Wai, and Ms. Yeung Ching[87](index=87&type=chunk) - The Remuneration Committee is chaired by Mr. Lung Tze Ming, with members including Mr. Wai Tsang Pang, Mr. Fung Chiu Chak, Victor, Mr. Yuen Pak Man, Mr. Li Kit Chi, Ms. Kwok Man Wai, and Ms. Yeung Ching[87](index=87&type=chunk) - The Nomination Committee is chaired by Mr. Wai Tsang Pang, with members including Mr. Fung Chiu Chak, Victor, Mr. Yuen Pak Man, Mr. Lung Tze Ming, Mr. Li Kit Chi, Ms. Kwok Man Wai, and Ms. Yeung Ching[87](index=87&type=chunk) [Management and Professional Advisors](index=31&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%82%E5%8F%8A%E4%B8%93%E4%B8%9A%E9%A1%BE%E9%97%AE) Ms. Yip Pui Shan serves as Financial Controller, and Ms. Wong Suk Han as Company Secretary; Ernst & Young is the auditor, and Conyers, Dill & Pearman and Reed Smith Richards Butler are legal advisors - The Financial Controller is Ms. Yip Pui Shan, and the Company Secretary is Ms. Wong Suk Han[87](index=87&type=chunk) - The auditor is Ernst & Young, and legal advisors are Conyers, Dill & Pearman and Reed Smith Richards Butler[87](index=87&type=chunk) - Principal bankers include Agricultural Bank of China Limited Hong Kong Branch, Bank of Communications (Hong Kong) Limited, China Construction Bank (Asia) Corporation Limited, Hang Seng Bank Limited, Shanghai Commercial Bank Limited, and The Hongkong and Shanghai Banking Corporation Limited[87](index=87&type=chunk) [Contact Information](index=31&type=section&id=%E8%81%94%E7%B3%BB%E6%96%B9%E5%BC%8F) The company's registered office is in Bermuda, its head office and principal place of business are in Wong Chuk Hang, Hong Kong, and its Hong Kong Share Registrar is Tricor Secretaries Limited - The registered office is located at Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda[87](index=87&type=chunk) - The head office and principal place of business are located at 20th Floor, One Island South, 2 Heung Yip Road, Wong Chuk Hang, Hong Kong[88](index=88&type=chunk) - The Hong Kong Share Registrar is Tricor Secretaries Limited, located at 17th Floor, Far East Finance Centre, 16 Harcourt Road, Hong Kong[88](index=88&type=chunk) - The Stock Exchange stock code is **687**, and the company website is **www.tysan.com**[88](index=88&type=chunk)

中期報告 2025 重要提示 公司擬以實施權益分派股權登記日（具體日期將在權益分派實施公告中明確）登記的總股本為基數，向全體股東派發現 金紅利。截至 2025 年 6 月 30 日，公司總股本為 28,698,864,088 股，以此為基數按每股派發人民幣 0.11 元（含稅）的現 金紅利計算，合計擬派發現金紅利人民幣 31.57 億元（含稅）。如在公司利潤分配方案公告披露之日起至實施權益分派 股權登記日期間，因可轉債轉股╱回購股份╱股權激勵授予股份回購註銷╱重大資產重組股份回購註銷等致使公司 總股本發生變動的，公司擬維持分配總額不變，相應調整每股分配比例。如後續總股本發生變化，將另行公告具體 調整情況。該利潤分配預案尚需經股東會審議通過。 六、 前瞻性陳述的風險聲明 本報告存在一些基於對未來政策和經濟走勢的主觀假設和判斷而做出的預見性陳述，受諸多可變因素影響，實際結 果或趨勢可能會與這些預見性陳述出現差異。 本報告中所涉及的未來計劃、發展戰略等前瞻性描述，不構成公司對投資者的實質承諾，敬請投資者注意投資風險。 公司存在的風險因素主要有戰略風險、市場風險、產品質量風險、匯率風險、境外經營風險、產業結構調整風險 ...

Important Notice [Board Statement and Financial Report Preparation](index=3&type=section&id=Board%20Statement%20and%20Financial%20Report%20Preparation) The board and senior management guarantee the interim report's truthfulness and completeness; financial statements are unaudited and prepared under Chinese and International/Hong Kong accounting standards - The company's board of directors and senior management guarantee the **truthfulness, accuracy, and completeness** of this interim report and assume legal responsibility[7](index=7&type=chunk) - Financial reports are prepared according to **Chinese Enterprise Accounting Standards** and **International/Hong Kong Financial Reporting Accounting Standards**, and are unaudited[7](index=7&type=chunk) [Interim Dividend Distribution](index=3&type=section&id=Interim%20Dividend%20Distribution) The board decided to distribute a 2025 interim dividend of HKD 0.73 per share (tax inclusive), declared in HKD, with A-share dividends paid in RMB - The board decided to distribute a **2025 interim dividend of HKD 0.73 per share** (tax inclusive)[7](index=7&type=chunk) - Dividends will be valued and declared in HKD, with A-share dividends paid in RMB and H-share dividends paid in HKD[7](index=7&type=chunk) [Forward-Looking Statements and Risk Warnings](index=4&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Warnings) The report contains forward-looking statements, where actual results may differ significantly due to macroeconomic, oil and gas price, and climate change uncertainties - The report contains forward-looking statements, and actual results may differ significantly due to uncertainties such as macroeconomic and political factors, crude oil and natural gas price fluctuations, climate change, and environmental policies[9](index=9&type=chunk) - The company cannot guarantee that expected performance or developments will be achieved, or that they will have the anticipated effect on the company[10](index=10&type=chunk) [Definitions of Common and Technical Terms](index=5&type=section&id=Definitions%20of%20Common%20and%20Technical%20Terms) The report provides definitions for common and technical terms in the oil and gas industry, along with unit abbreviations and conversion ratios, to aid reader comprehension Common and Technical Terms Definitions | Term | Definition | | :--- | :--- | | Exploration Well | An exploratory well drilled into a formation to detect petroleum reserves, including wells drilled to obtain geological and geophysical parameters | | Appraisal Well | An exploratory well drilled in a discovered petroleum area for commercial value assessment | | Wildcat Well | Includes exploration wells and appraisal wells | | Upstream Business | Oil and gas exploration, development, production, and sales | | Proved Reserves | The estimated quantities of crude oil or natural gas that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic, operating conditions, and government regulations | | Reasonable Certainty | Means that as more geological, engineering, and economic data become available over time, the estimated ultimate recovery is more likely to increase or remain unchanged | | Reserve Replacement Ratio | The total increase in proved reserves divided by the net production for a specified year | | Reserve Life | Proved reserves divided by the net production for a specified year | | Seismic | Refers to seismic exploration, a geophysical exploration method that uses differences in underground medium elasticity and density to generate wave impedance, which is then received and processed to reflect and infer the properties and morphology of underground rock formations | | Proved Geological Reserves | Estimated oil and gas quantities in exploitable reservoirs, confirmed by drilling industrial oil and gas flows and subsequent evaluation, with high certainty | | Unconventional Oil and Gas | Refers to oil and gas resources that cannot achieve natural industrial production with traditional techniques, requiring new technologies to improve reservoir permeability or fluid viscosity for economic extraction, typically continuous or quasi-continuous accumulations, including tight oil and gas, shale oil and gas, coalbed methane, and natural gas hydrates | Unit Abbreviations | Abbreviation | Unit | | :--- | :--- | | Bbl | Barrel | | Bcf | Billion cubic feet | | BOE | Barrel of oil equivalent | | Mbbls | Thousand barrels | | Mboe | Thousand barrels of oil equivalent | | Mcf | Thousand cubic feet | | Mmboe | Million barrels of oil equivalent | | Mmbbls | Million barrels | **Conversion Ratios:** 1 ton of crude oil is approximately 7.21 barrels, and 1 cubic meter of natural gas is approximately 35.26 cubic feet Company Profile [Company Overview and Business Scope](index=7&type=section&id=Company%20Overview%20and%20Business%20Scope) CNOOC Limited is China's largest offshore crude oil and natural gas producer and one of the world's largest independent oil and gas exploration and production companies, primarily engaged in the exploration, development, production, and sale of crude oil and natural gas - The company was incorporated in Hong Kong in August 1999, listed on the Hong Kong Stock Exchange in February 2001, listed A-shares on the Shanghai Stock Exchange in April 2022, and added an RMB counter on the Hong Kong Stock Exchange in June 2023[14](index=14&type=chunk) - The company is China's largest offshore crude oil and natural gas producer and one of the world's largest independent oil and gas exploration and production companies[14](index=14&type=chunk) - Its main business involves the exploration, development, production, and sale of crude oil and natural gas, with assets distributed across China's offshore areas and in Asia, Africa, North America, South America, Oceania, and Europe[14](index=14&type=chunk) [Basic Information and Contact Details](index=7&type=section&id=Basic%20Information%20and%20Contact%20Details) This section provides the company's Chinese abbreviation, CEO, company secretary, registered and office addresses, contact numbers, email, website, and information disclosure newspapers and websites CNOOC Limited Basic Information | Item | Content | | :--- | :--- | | Company Chinese Abbreviation | 中國海油 (CNOOC) | | Company CEO | Zhou Xinhuai | | Company Secretary | Xu Yugao | | Company Chinese Name | 中國海洋石油有限公司 | | Company English Name | CNOOC Limited | | Contact Address | No. 25, Chaoyangmen North Street, Dongcheng District, Beijing | | Phone | (8610)8452 0883 | | Email | ir@cnooc.com.cn | - The company's designated A-share information disclosure newspapers are China Securities Journal, Shanghai Securities News, Securities Times, and Securities Daily[16](index=16&type=chunk) - The websites for interim report publication are www.sse.com.cn and www.hkexnews.hk[16](index=16&type=chunk) Financial Highlights [Key Accounting Data](index=9&type=section&id=Key%20Accounting%20Data) In the first half of 2025, the company's operating revenue, pre-tax profit, net profit attributable to parent company shareholders, and net cash flow from operating activities all decreased year-on-year, while net assets attributable to parent company shareholders and total assets increased at period-end Key Accounting Data for H1 2025 (million RMB) | Key Accounting Data | Current Period (Jan-Jun) | Prior Year Period | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 207,608 | 226,770 | (8) | | Pre-tax Profit | 94,659 | 105,776 | (11) | | Net Profit Attributable to Parent Company Shareholders | 69,533 | 79,731 | (13) | | Net Profit Attributable to Parent Company Shareholders (Excluding Non-recurring Items) | 69,353 | 79,197 | (12) | | Net Cash Flow from Operating Activities | 109,182 | 118,554 | (8) | | Net Assets Attributable to Parent Company Shareholders (Period-end) | 786,468 | 747,548 | 5 | | Total Assets (Period-end) | 1,118,957 | 1,056,281 | 6 | [Key Financial Indicators](index=9&type=section&id=Key%20Financial%20Indicators) In the first half of 2025, the company's basic and diluted earnings per share both decreased by 13% year-on-year, and the weighted average return on net assets decreased by 2.37 percentage points Key Financial Indicators for H1 2025 | Key Financial Indicators | Current Period (Jan-Jun) | Prior Year Period | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 1.46 | 1.68 | (13) | | Diluted Earnings Per Share (RMB/share) | 1.46 | 1.68 | (13) | | Basic Earnings Per Share (Excluding Non-recurring Items) (RMB/share) | 1.46 | 1.66 | (12) | | Weighted Average Return on Net Assets (%) | 8.90 | 11.27 | Decreased by 2.37 percentage points | | Weighted Average Return on Net Assets (Excluding Non-recurring Items) (%) | 8.88 | 11.20 | Decreased by 2.32 percentage points | Chairman's Statement [First Half Operating Review](index=10&type=section&id=First%20Half%20Operating%20Review) In H1 2025, facing complex external conditions and fluctuating oil prices, the company effectively managed market volatility through reserve and production growth, technological innovation, green transition, and efficiency improvements, laying a foundation for annual targets - Facing severe and complex external conditions and downward pressure from international oil price fluctuations, the company focused on its core oil and gas business, responding to market volatility through **reserve and production growth, technological innovation, green transition, and quality and efficiency improvements**[19](index=19&type=chunk) - Oil and gas exploration yielded fruitful results, with **5 new discoveries** in China's offshore areas, continuous reserve additions in Guyana deepwater, and the first signing of a new oil exploration block contract in Kazakhstan[19](index=19&type=chunk) - Multiple major projects were successfully brought online, with net production reaching **384.6 million BOE**, a **6.1% year-on-year increase**, including a **12.0% significant increase in natural gas production**[19](index=19&type=chunk) [Technological Innovation and Green Development](index=10&type=section&id=Technological%20Innovation%20and%20Green%20Development) The company focuses on technological innovation, achieving breakthroughs in geophysical exploration, complex reservoir fine water injection, and intelligent drilling and completion, while advancing digital transformation and deploying "AI+" scenarios, and promoting integrated oil and gas with new energy development for new energy-saving and carbon reduction achievements - Key technologies for reserve and production growth were tackled, with breakthroughs in geophysical exploration technology and comprehensive advancement of intelligent drilling and completion construction[20](index=20&type=chunk) - Digital transformation was strengthened, with the deployment and implementation of "AI+" key scenarios, and the "Deep Sea No. 1" smart gas field was recognized as one of China's first batch of **excellent-level smart factories**[20](index=20&type=chunk) - The company adheres to integrated oil and gas and new energy development, continuously strengthening energy substitution, actively recovering offshore flare gas, and commissioning China's first offshore CCUS project[20](index=20&type=chunk) [Financial Performance and Future Outlook](index=11&type=section&id=Financial%20Performance%20and%20Future%20Outlook) In the first half, the company achieved a net profit attributable to parent company shareholders of RMB 69.5 billion, maintained good control over per-barrel main costs, and decided to distribute an interim dividend, committing to strategic focus to achieve full-year targets - In the first half, per-barrel main costs were well controlled, achieving a **net profit attributable to parent company shareholders of RMB 69.5 billion**[21](index=21&type=chunk) - The board decided to distribute a **2025 interim dividend of HKD 0.73 per share** (tax inclusive), emphasizing sharing development achievements with shareholders[21](index=21&type=chunk) - Looking ahead to the second half, the company will maintain strategic focus, strengthen confidence and determination, and make every effort to complete the full-year targets, rewarding shareholders with better performance[21](index=21&type=chunk) Business Review [Overview](index=12&type=section&id=Overview) As an upstream company focused on oil and gas exploration, development, and production, CNOOC faced wide fluctuations in international oil prices in H1 2025, achieving oil and gas net production growth through reserve and production increases, technological innovation, green development, and efficiency improvements, despite a decrease in oil and gas sales revenue and net profit attributable to parent company shareholders - The company is China's main offshore oil and gas producer and one of the world's largest independent oil and gas exploration and development companies[23](index=23&type=chunk) - In the first half of 2025, approximately **69.3% of the company's net production** came from China, with overseas oil and gas assets accounting for approximately **41.7% of total assets**[23](index=23&type=chunk) - The average price of international Brent crude oil **decreased by 15.1% year-on-year**[23](index=23&type=chunk) Key Operating Data for H1 2025 | Indicator | Amount/Ratio | | :--- | :--- | | Oil and Gas Sales Revenue | RMB 171,745 million (-7.2% YoY) | | Net Profit Attributable to Parent Company Shareholders | RMB 69,533 million (-12.8% YoY) | | Oil and Gas Net Production | 384.6 million BOE (+6.1% YoY) | | Natural Gas Production | Significantly increased by 12.0% YoY | [Exploration](index=13&type=section&id=Exploration) In the first half, the company continued to intensify exploration efforts, making 5 new discoveries in China's offshore areas and a significant breakthrough in metamorphic rock buried hill exploration in the Beibu Gulf Basin; overseas, new block contracts were signed in Iraq and Kazakhstan, with continuous reserve additions in Guyana deepwater - **5 new discoveries** were made in China's offshore areas: Longkou 25-1, Jinzhou 27-6, Caofeidian 22-3, Weizhou 10-5, and Weizhou 10-5 South[25](index=25&type=chunk) - A new discovery, Weizhou 10-5 South, was made in the Beibu Gulf Basin, achieving a **major breakthrough** in the first metamorphic rock buried hill exploration area in China's South China Sea[25](index=25&type=chunk) - Overseas, oil contracts were signed for Iraq Block 7 and Kazakhstan Zhylyoi Block, with continuous reserve additions through 3D exploration in Guyana deepwater[25](index=25&type=chunk) [Engineering Construction and Development Production](index=14&type=section&id=Engineering%20Construction%20and%20Development%20Production) The company efficiently advanced capacity building in the first half, with multiple new projects successfully brought online, and the full commissioning of Deep Sea No. 1 Phase II driving significant natural gas production growth; oil and gas net production reached a new historical high for the same period, with both China and overseas production increasing - Projects such as Bozhong 26-6 Oilfield Development (Phase I), Brazil Buzios 7, Mero 4, and "Deep Sea No. 1" Phase II were successfully brought online[26](index=26&type=chunk) - In the first half, oil and gas net production reached a **new historical high for the same period**, totaling **384.6 million BOE**, a **6.1% year-on-year increase**[26](index=26&type=chunk) - China's oil and gas net production was **266.5 million BOE**, a **7.6% year-on-year increase**; overseas oil and gas net production was **118.1 million BOE**, a **2.8% year-on-year increase**[27](index=27&type=chunk) Production Summary for H1 2025 (million BOE) | Region | H1 2025 Total Oil & Gas | H1 2024 Total Oil & Gas | | :--- | :--- | :--- | | China | 266.5 | 247.6 | | Overseas | 118.1 | 114.9 | | Total | 384.6 | 362.6 | **Production Mix:** Petroleum Liquids: 77.0% (+4.5% YoY) Natural Gas: 23.0% (+12.0% YoY) [Technological Innovation](index=16&type=section&id=Technological%20Innovation) The company continuously strengthens R&D in its core oil and gas business, enhancing independent innovation capabilities, achieving significant progress in seismic data acquisition, intelligent multi-zone injection technology, and intelligent drilling and completion, while improving efficiency and intelligence through digital transformation - Industrialized promotion of advanced seismic data acquisition technology and large-scale application of advanced processing technology significantly improved the quality of deep seismic data[29](index=29&type=chunk) - Large-scale application of cabled/wireless intelligent multi-zone injection technology helped reduce China's offshore oilfield natural decline rate to **9.5%**, a historical best[29](index=29&type=chunk) - The "Deep Sea No. 1" smart gas field was awarded the title of "National Excellent Smart Factory" in China, becoming the **only upstream unit in the oil and petrochemical sector** to receive this honor[29](index=29&type=chunk) - Deployment and implementation of "AI+" key scenarios achieved precise tracing of marine oil spills and efficient emergency response to typhoon disasters[29](index=29&type=chunk) [Green and Low Carbon](index=16&type=section&id=Green%20and%20Low%20Carbon) The company achieved new progress in energy saving and carbon reduction, consuming over 500 million kWh of green electricity in the first half, building China's first offshore "zero-flaring" oil production platform, and commissioning China's first offshore CCUS project, promoting new energy and new industry development - In the first half, over **500 million kWh of green electricity** was consumed, and the recovery and utilization of existing flare gas exceeding 10,000 cubic meters/day was completed[30](index=30&type=chunk) - China's first offshore "zero-flaring" oil production platform was built in the Bozhong 34-2/4 oilfield[30](index=30&type=chunk) - The "Haiyou Guanlan" deep-sea floating wind power platform has been stably operating for two years, with cumulative power generation of **47 million kWh**[30](index=30&type=chunk) - China's first offshore CCUS project was commissioned at Enping 15-1 platform, pioneering a new model of marine energy circular utilization that "drives oil with carbon and fixes carbon with oil"[30](index=30&type=chunk) [Rural Revitalization](index=17&type=section&id=Rural%20Revitalization) In the first half, the company invested RMB 70.55 million and launched 25 assistance projects covering industrial, talent, cultural, ecological revitalization, and living environment improvement, contributing to comprehensive rural revitalization - In the first half, **RMB 70.55 million** in assistance funds was invested, and **25 assistance projects** were launched[31](index=31&type=chunk) - Assistance projects cover multiple areas, including industrial revitalization, talent revitalization, cultural revitalization, ecological revitalization, and living environment improvement[31](index=31&type=chunk) Risk Management and Internal Control [Risk Management System](index=18&type=section&id=Risk%20Management%20System) The company highly values risk management, internal control, and compliance management; the board is responsible for establishing and maintaining an appropriate and effective system, with a Risk Control and Compliance Committee overseeing implementation and reporting regularly to the board - The company's board of directors ensures the establishment and maintenance of an appropriate and effective risk management and internal control system, and strengthens the construction of the compliance management system[33](index=33&type=chunk) - The company's Risk Control and Compliance Committee is responsible for organizing and implementing comprehensive risk management and internal control work, and reports regularly to the Audit Committee and the board of directors[33](index=33&type=chunk) [Risk Factors](index=18&type=section&id=Risk%20Factors) The company's operations face multiple risks, including macroeconomic and policy changes, intensified market competition, HSSE risks in operations, technological R&D challenges, customer and supplier concentration, financial exchange rate fluctuations, management influence, and legal compliance and international sanctions - Macroeconomic and policy risks: geopolitical changes, trade frictions, changes in international political and economic situations (e.g., impact of Russia-Ukraine conflict on Arctic LNG 2 LLC), oil and gas system reforms, climate change, and environmental policies[35](index=35&type=chunk)[36](index=36&type=chunk)[37](index=37&type=chunk)[38](index=38&type=chunk) - Market risks: fluctuations in crude oil and natural gas prices, increasing market competition (including alternative energy sources)[39](index=39&type=chunk)[40](index=40&type=chunk) - Operational risks: HSSE risks, deviations in forward-looking judgments of oil and gas prices, failure to realize expected returns from M&A and divestitures, limited control over joint operations, high concentration of customers and suppliers, inability to realize undeveloped reserves, technological R&D and deployment risks, cybersecurity and IT infrastructure damage, infrastructure and indigenous rights risks faced by Canadian operations, and risks related to connected transactions[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk)[44](index=44&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk)[47](index=47&type=chunk)[48](index=48&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk) - Financial risks: exchange rate fluctuation risks, foreign exchange control risks[52](index=52&type=chunk)[53](index=53&type=chunk) - Management risks: influence of controlling shareholder CNOOC Group on company decisions[54](index=54&type=chunk) - Legal risks: risks of violating anti-corruption, anti-fraud, anti-money laundering, and corporate governance laws and regulations, and risks of violating data security-related laws and regulations[55](index=55&type=chunk)[56](index=56&type=chunk) - Sanction risks: changes in US sanction policies may adversely affect the company's business, partners, and investor perception[57](index=57&type=chunk) [Overall Risk Response Measures](index=24&type=section&id=Overall%20Risk%20Response%20Measures) The company actively builds a risk management system comparable to international leading energy companies, continuously improves internal control, and implements coordinated, classified responses to major risks, forming a full-process risk management mechanism of "prevention, in-process control, and post-event evaluation" - The company actively builds a risk management system comparable to international leading energy companies and continuously improves its risk management and internal control systems[58](index=58&type=chunk) - It implements coordinated management and classified responses to various major risks, forming a full-process risk management mechanism of "prevention before the event, control during the event, and evaluation after the event"[58](index=58&type=chunk) Corporate Governance Report [Directors' Interests](index=25&type=section&id=Directors'%20Interests) As of June 30, 2025, except for Mr. Zhao Chongkang holding some H-shares, no current or resigned directors and chief executives held other disclosable interests or short positions in the company's shares or related shares during the reporting period Directors' H-share Holdings (as of June 5, 2025) | Director Name | Nature of Interest | Number of H-shares Held | Approximate Percentage of Total Issued H-shares | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | :--- | | Zhao Chongkang | Beneficial Interest | 1,650,000 | 0.004% | 0.003% | - As of June 30, 2025, within the six months ended, the company did not grant any rights to subscribe for its shares, related shares, or debentures to any other person, nor did any other person exercise such rights[60](index=60&type=chunk) [Major Shareholders' Interests](index=26&type=section&id=Major%20Shareholders'%20Interests) As of June 30, 2025, CNOOC (BVI) Limited, Overseas Oil & Gas Corporation, Ltd. (OOGC), and CNOOC Group were the company's major shareholders, holding most of the company's issued shares Major Shareholders' Interests (as of June 30, 2025) | Shareholder Name | Number of H-shares Held | Approximate Percentage of Total Issued H-shares | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | :--- | | CNOOC (BVI) Limited | 28,772,727,268 | 64.60% | 60.54% | | Overseas Oil & Gas Corporation, Ltd. ("OOGC") | 28,772,727,273 | 64.60% | 60.54% | | CNOOC Group | 29,530,451,273 | 66.30% | 62.13% | - CNOOC (BVI) Limited is a direct wholly-owned subsidiary of OOGC, and OOGC is a direct wholly-owned subsidiary of CNOOC Group[61](index=61&type=chunk) [Audit Committee](index=27&type=section&id=Audit%20Committee) The Audit Committee has reviewed the accounting standards and practices adopted by the company and its subsidiaries and consulted on matters such as risk management, internal control, and financial reporting; the H1 2025 interim results are unaudited but have been reviewed by Ernst & Young - The Audit Committee has reviewed the accounting standards and practices adopted by the company and its subsidiaries and consulted on matters such as risk management, internal control, and financial reporting[63](index=63&type=chunk) - The interim results for the six months ended June 30, 2025, are unaudited but have been reviewed by Ernst & Young in accordance with Hong Kong Standard on Review Engagements 2410[63](index=63&type=chunk) [Repurchase, Sale or Redemption of Listed Securities](index=27&type=section&id=Repurchase,%20Sale%20or%20Redemption%20of%20Listed%20Securities) In the first half of 2025, CNOOC Petroleum North America ULC, an indirect wholly-owned subsidiary, repurchased and cancelled some unlisted bonds; the company or any of its subsidiaries did not repurchase, sell, or redeem its listed securities, nor did it hold any treasury shares CNOOC Petroleum North America ULC Bond Repurchase (as of June 30, 2025) | Issuer | Maturity Date | Coupon Rate | Face Value (USD) | Repurchased Face Value (USD) | Repurchase Percentage | Amount Outstanding (USD) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | CPNA | March 15, 2032 | 7.875% | 314,572,000 | 400,000 | 0.13% | 314,172,000 | | CPNA | May 15, 2037 | 6.400% | 752,452,000 | 4,204,000 | 0.56% | 748,248,000 | - The aforementioned bonds are not listed on the Hong Kong Stock Exchange or the Shanghai Stock Exchange[64](index=64&type=chunk) - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries repurchased, sold, or redeemed its listed securities, nor did it hold any treasury shares[65](index=65&type=chunk) [Corporate Governance Code and Directors' Securities Dealing Standards](index=27&type=section&id=Corporate%20Governance%20Code%20and%20Directors'%20Securities%20Dealing%20Standards) The company has complied with all code provisions in Part 2 of Appendix C1 to the HKEX Listing Rules throughout the first half of 2025; all directors confirmed compliance with the company's Code of Conduct and Standard Code regarding securities dealings - The company has complied with all code provisions contained in Part 2 of Appendix C1 to the HKEX Listing Rules for the six months ended June 30, 2025[66](index=66&type=chunk) - All directors of the company confirmed that they have complied with the standards required by the company's Code of Conduct and Standard Code for the six months ended June 30, 2025[67](index=67&type=chunk) [Changes in Directors' Information](index=28&type=section&id=Changes%20in%20Directors'%20Information) Since the date of the most recent annual report until the date of this interim report, there have been multiple changes in the company's board members and their committee roles, including the appointment of Mr. Zhang Chuanjiang as the new Chairman, and adjustments or retirements of several directors - Wang Dehua was appointed as a member of the Audit Committee, and Mu Xiuping was appointed as Chief Financial Officer and re-designated as an Executive Director[68](index=68&type=chunk) - Wang Dongjin ceased to be Chairman and Non-executive Director, and Zhao Chongkang retired as an Independent Non-executive Director[68](index=68&type=chunk) - Chen Zeming was appointed as an Independent Non-executive Director and a member of the Audit Committee and Remuneration Committee[68](index=68&type=chunk) - Zhang Chuanjiang was appointed as a Non-executive Director, Chairman, Chairman of the Nomination Committee, and Chairman of the Strategy and Sustainable Development Committee[68](index=68&type=chunk) [Interim Dividend Distribution Plan and Share Transfer Registration](index=29&type=section&id=Interim%20Dividend%20Distribution%20Plan%20and%20Share%20Transfer%20Registration) The board decided to distribute a 2025 interim dividend of HKD 0.73 per share (tax inclusive); to be eligible for the dividend, H-share transfer registration will be suspended from September 15 to September 19, 2025 - The board decided to distribute a **2025 interim dividend of HKD 0.73 per share** (tax inclusive)[70](index=70&type=chunk) - The H-share shareholder register will be closed from Monday, September 15, 2025, to Friday, September 19, 2025, and H-share transfer registration will be suspended[71](index=71&type=chunk) - The interim dividend will be distributed on or around Friday, October 17, 2025[71](index=71&type=chunk) [Withholding Tax on Dividends for Overseas Non-Resident Enterprises](index=30&type=section&id=Withholding%20Tax%20on%20Dividends%20for%20Overseas%20Non-Resident%20Enterprises) As a Chinese resident enterprise, the company will withhold and pay 10% enterprise income tax on the 2025 interim dividends distributed to non-resident enterprise H-share holders; eligible resident enterprises or non-resident enterprises enjoying tax treaty benefits may apply for reduction or exemption - The company has been identified as a resident enterprise of the People's Republic of China and is required to **withhold and pay 10% enterprise income tax**[72](index=72&type=chunk) - For H-share holders registered under non-individual names (including Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect investors), the company will distribute dividends after deducting 10% enterprise income tax[72](index=72&type=chunk)[73](index=73&type=chunk) - No individual income tax will be withheld for natural person H-share holders[72](index=72&type=chunk) - Non-resident enterprises that qualify as resident enterprises or are subject to a tax rate lower than 10% under a tax treaty may submit supporting documents to apply for reduction or exemption[73](index=73&type=chunk) Management Discussion and Analysis [Core Competitiveness Analysis](index=32&type=section&id=Core%20Competitiveness%20Analysis) The company possesses a rich oil and gas resource base and industry-leading production growth capabilities, dominates offshore oil and gas exploration and development in China, masters a complete set of offshore oil and gas technologies, demonstrates strong cost control, robust financial performance, and a diversified asset structure, while steadily advancing green and low-carbon development - The company possesses a **rich resource base**, with a reserve replacement ratio consistently above **130%** for many years and reserve life stable at **10 years**[75](index=75&type=chunk) - The company is the **most significant oil and natural gas producer** in China's offshore areas, with extensive experience in oil and gas exploration and development and comprehensive offshore production facilities[76](index=76&type=chunk) - A **complete offshore oil and gas exploration, development, and production technology system** has been established, with breakthroughs in key engineering technologies for ultra-deepwater oil and gas field development at 1,500 meters[77](index=77&type=chunk) - The cost control system is well-developed, with **industry-leading per-barrel profitability**, robust financial condition, and a low asset-liability ratio[78](index=78&type=chunk) - The company has a global layout of oil and gas assets, possessing a **diversified asset structure**, with interests in several world-class oil and gas projects in Guyana and Brazil[79](index=79&type=chunk) - The company adheres to offshore new energy business as its core, promoting the integrated development of new energy and oil and gas production, and steadily advancing zero-carbon and negative-carbon industries[80](index=80&type=chunk) [Operating Performance](index=33&type=section&id=Operating%20Performance) In H1 2025, the company's operating revenue and net profit attributable to parent company shareholders decreased due to falling oil prices, but this was partially offset by increased reserves and production and cost control; operating expenses, exploration expenses, depreciation, depletion, and amortization, and selling and administrative expenses all increased, while per-barrel cost indicators decreased H1 2025 Oil and Gas Sales Revenue, Price, and Volume (million RMB) | Indicator | H1 2025 | H1 2024 | Change Amount | Change Ratio (%) | | :--- | :--- | :--- | :--- | :--- | | Oil and Gas Sales Revenue | 171,745 | 185,112 | (13,367) | (7.2) | | Petroleum Liquids Sales Revenue | 143,998 | 161,256 | (17,258) | (10.7) | | Natural Gas Sales Revenue | 27,747 | 23,856 | 3,891 | 16.3 | | Sales Volume (million BOE) | 373.8 | 356.1 | 17.7 | 5.0 | | Petroleum Liquids Sales Volume (million barrels) | 290.0 | 282.1 | 7.9 | 2.8 | | Natural Gas Sales Volume (billion cubic feet) | 489.2 | 431.1 | 58.1 | 13.5 | | Realized Price of Petroleum Liquids (USD/barrel) | 69.15 | 80.32 | (11.17) | (13.9) | | Realized Price of Natural Gas (USD/thousand cubic feet) | 7.90 | 7.79 | 0.11 | 1.4 | - Operating revenue was **RMB 207,608 million**, a **year-on-year decrease of 8.4%**, mainly due to falling oil prices, partially offset by increased sales volume[81](index=81&type=chunk) - Operating expenses were **RMB 18,277 million**, a **year-on-year increase of 4.7%**; per-barrel operating expense was **USD 6.76/BOE**, a **year-on-year decrease of 0.7%**[82](index=82&type=chunk) - Exploration expenses were **RMB 5,233 million**, a **year-on-year increase of 11.2%**, mainly due to increased risk exploration efforts[83](index=83&type=chunk) - Depreciation, depletion, and amortization were **RMB 39,318 million**, a **year-on-year increase of 4.7%**; per-barrel depreciation, depletion, and amortization (excluding oilfield abandonment costs) was **USD 13.89/BOE**, a **year-on-year decrease of 0.4%**[84](index=84&type=chunk) - Selling and administrative expenses were **RMB 5,329 million**, a **year-on-year increase of 2.1%**; per-barrel selling and administrative expense was **USD 1.91/BOE**, a **year-on-year decrease of 6.4%**[85](index=85&type=chunk) - Net exchange gain was **RMB 1,204 million**, a **year-on-year increase of 323.8%**, mainly due to fluctuations in the USD to HKD exchange rate[86](index=86&type=chunk) - Income tax expense was **RMB 25,066 million**, a **year-on-year decrease of 3.7%**, primarily due to a decrease in overall pre-tax profit[87](index=87&type=chunk) - Net profit attributable to parent company shareholders was **RMB 69,533 million**, a **year-on-year decrease of 12.8%**, partially mitigating the adverse impact of declining international oil prices[88](index=88&type=chunk) [Assets, Liabilities, and Equity](index=35&type=section&id=Assets,%20Liabilities,%20and%20Equity) As of June 30, 2025, the company's financial position remained robust; total assets and total liabilities both increased, with current assets primarily affected by increased cash and time deposits, current liabilities by increased dividends payable, and non-current liabilities by increased oilfield abandonment provisions Assets, Liabilities, and Equity (million RMB) | Item | June 30, 2025 | December 31, 2024 | Change Ratio (%) | | :--- | :--- | :--- | :--- | | Current Assets | 321,489 | 264,609 | 21.5 | | Non-current Assets | 797,468 | 791,672 | 0.7 | | Total Assets | 1,118,957 | 1,056,281 | 5.9 | | Current Liabilities | 136,146 | 118,875 | 14.5 | | Non-current Liabilities | 194,436 | 187,970 | 3.4 | | Total Liabilities | 330,582 | 306,845 | 7.7 | | Equity Attributable to Parent Company Shareholders | 786,468 | 747,548 | 5.2 | | Total Equity | 788,375 | 749,436 | 5.2 | - Current assets increased by **21.5%**, mainly due to an increase in cash and cash equivalents and time deposits with maturities between three months and one year[89](index=89&type=chunk) - Current liabilities increased by **14.5%**, mainly due to an increase in dividends payable[90](index=90&type=chunk) - Non-current liabilities increased by **3.4%**, mainly due to an increase in oilfield abandonment provisions[90](index=90&type=chunk) [Cash Flow Situation](index=36&type=section&id=Cash%20Flow%20Situation) In H1 2025, the company's cash flow remained healthy; net cash flow from operating activities decreased due to lower oil prices, net cash outflow from investing activities decreased due to increased cash inflow from subsidiary disposals, and net cash outflow from financing activities decreased due to reduced debt repayments Cash Flow Situation (million RMB) | Item | Current Period | Prior Year Period | Change Ratio (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 109,182 | 118,554 | (7.9) | | Net Cash Flow from Investing Activities | (73,783) | (78,802) | (6.4) | | Net Cash Flow from Financing Activities | (22,451) | (30,322) | (26.0) | - Net cash inflow from operating activities decreased by **7.9% year-on-year**, mainly due to a decrease in cash inflow from oil and gas sales resulting from lower international oil prices[92](index=92&type=chunk) - Net cash outflow from investing activities decreased by **6.4% year-on-year**, mainly due to an increase in cash inflow from the disposal of subsidiaries[92](index=92&type=chunk) - Net cash outflow from financing activities decreased by **26.0% year-on-year**, mainly due to a decrease in cash paid for debt repayment in the current period[92](index=92&type=chunk) [Capital Expenditures](index=36&type=section&id=Capital%20Expenditures) In the first half, the company completed capital expenditures of RMB 57.6 billion, an 8.8% decrease from the same period last year, primarily due to reductions in development investment and capitalized production Capital Expenditures (million RMB) | Item | H1 2025 | H1 2024 | Change Amount | Change Ratio (%) | | :--- | :--- | :--- | :--- | :--- | | Exploration Investment | 9,094 | 9,240 | (146) | (1.6) | | Development Investment | 36,273 | 40,221 | (3,948) | (9.8) | | Capitalized Production | 11,631 | 12,511 | (880) | (7.0) | | Other | 602 | 1,153 | (551) | (47.8) | | Total | 57,600 | 63,125 | (5,525) | (8.8) | [Capital Gearing Ratio and Asset Pledges](index=37&type=section&id=Capital%20Gearing%20Ratio%20and%20Asset%20Pledges) As of June 30, 2025, the company's capital gearing ratio was 8.4%, a decrease of 2.5 percentage points from the end of last year, further optimizing financial leverage; detailed information on pledged assets can be found in Note 9 to the financial statements - As of June 30, 2025, the company and its subsidiaries' capital gearing ratio was **8.4%**, a **decrease of 2.5 percentage points** from the end of last year[94](index=94&type=chunk) - For the company's pledged assets, please refer to Note 9 to the interim unaudited condensed consolidated financial statements[95](index=95&type=chunk) [Second Half Work Plan](index=37&type=section&id=Second%20Half%20Work%20Plan) In the second half, the company will focus on value exploration, consolidate the resource base for reserve and production growth, strengthen the safety production line, achieve quality and efficiency improvements in capacity building, and enhance lean management to maintain cost competitiveness and continuously improve value creation capabilities - In the second half, the focus will be on **value exploration**, concentrating on key areas to continuously consolidate the resource base for reserve and production growth[96](index=96&type=chunk) - The safety production line will be strengthened to achieve **quality and efficiency improvements in capacity building**, ensuring the completion of annual production and operation targets[96](index=96&type=chunk) - Lean management will be enhanced to maintain **cost competitive advantages** and continuously improve value creation capabilities[96](index=96&type=chunk) [Use of Proceeds from Listing](index=38&type=section&id=Use%20of%20Proceeds%20from%20Listing) The company's net proceeds from its 2022 A-share listing were RMB 32,099 million, primarily used for development projects in Guyana, Liuhua, Lingshui, and Lufeng oilfields, and to supplement working capital; most funds have been utilized by the end of the reporting period, with the remainder expected to be used by December 31, 2025 - The company completed its initial public offering of RMB ordinary shares and listing on the Shanghai Stock Exchange on April 21, 2022, with net proceeds of **RMB 32,099 million**[97](index=97&type=chunk) Use of Proceeds from Listing (as of June 30, 2025, million RMB) | Planned Use of Proceeds | Committed Investment Amount | Utilized Proceeds | Unutilized Proceeds | Expected Timeline | | :--- | :--- | :--- | :--- | :--- | | Guyana Payara Oilfield Development Project | 5,200.00 | 5,200.00 | – | | | Liuhua 11-1/4-1 Oilfield Secondary Development Project | 6,500.00 | 5,264.72 | 1,235.28 | | | Guyana Liza Oilfield Phase II Development Project | 2,200.00 | 2,200.00 | – | | | Lufeng Oilfield Group Regional Development Project | 3,500.00 | 3,171.25 | 328.75 | Expected to be utilized by December 31, 2025 | | Lingshui 17-2 Gas Field Development Project | 3,000.00 | 2,985.20 | 14.80 | | | Lufeng 12-3 Oilfield Development Project | 1,000.00 | 1,000.00 | – | | | Qinhuangdao 32-6/Caofeidian 11-1 Oilfield Group Shore Power Application Project | 1,000.00 | 826.86 | 173.14 | | | Liuda 6-2 Oilfield Development Project | 500.00 | 500.00 | – | | | Supplement Working Capital | 9,199.09 | 9,175.34 | 23.75 | | | Total | 32,099.09 | 30,323.38 | 1,775.70 | | Financial Report [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=39&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) In H1 2025, the company achieved a net profit of RMB 69,593 million, with net profit attributable to parent company shareholders of RMB 69,533 million, and basic and diluted earnings per share of RMB 1.46, all showing a decrease from the prior year period H1 2025 Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (million RMB) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue | 207,608 | 226,770 | | Operating Profit | 95,102 | 105,542 | | Profit Before Tax | 94,659 | 105,776 | | Income Tax Expense | (25,066) | (26,031) | | Net Profit | 69,593 | 79,745 | | Net Profit Attributable to Company Shareholders | 69,533 | 79,731 | | Total Other Comprehensive (Expense)/Income, Net of Tax | (1,970) | 1,468 | | Total Comprehensive Income for the Period | 67,623 | 81,213 | | Basic Earnings Per Share (RMB) | 1.46 | 1.68 | | Diluted Earnings Per Share (RMB) | 1.46 | 1.68 | [Interim Condensed Consolidated Statement of Financial Position](index=41&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets reached RMB 1,118,957 million, total liabilities were RMB 330,582 million, and equity attributable to company shareholders was RMB 786,468 million, maintaining a robust financial position Interim Condensed Consolidated Statement of Financial Position (million RMB) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Non-current Assets | 797,468 | 791,672 | | Current Assets | 321,489 | 264,609 | | Total Assets | 1,118,957 | 1,056,281 | | Current Liabilities | 136,146 | 118,875 | | Non-current Liabilities | 194,436 | 187,970 | | Total Liabilities | 330,582 | 306,845 | | Equity Attributable to Company Shareholders | 786,468 | 747,548 | | Total Equity | 788,375 | 749,436 | [Interim Condensed Consolidated Statement of Changes in Equity](index=43&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, the company's total equity increased from RMB 749,436 million at the beginning of the period to RMB 788,375 million, primarily driven by current period profit, partially offset by dividend distribution and exchange translation differences - As of June 30, 2025, equity attributable to company shareholders was **RMB 786,468 million**, an increase from **RMB 747,548 million** as of January 1, 2025[105](index=105&type=chunk) - Current period profit was **RMB 69,533 million**, net other comprehensive expense was **RMB (1,970) million**, and the 2024 final dividend distributed was **RMB (28,672) million**[105](index=105&type=chunk) [Interim Condensed Consolidated Statement of Cash Flows](index=44&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) In H1 2025, the company's net cash inflow from operating activities was RMB 109,182 million, net cash outflow from investing activities was RMB 73,783 million, net cash outflow from financing activities was RMB 22,451 million, and the period-end cash and cash equivalents balance was RMB 94,137 million Interim Condensed Consolidated Statement of Cash Flows (million RMB) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Cash Inflow from Operating Activities | 109,182 | 118,554 | | Net Cash Outflow from Investing Activities | (73,783) | (78,802) | | Net Cash Outflow from Financing Activities | (22,451) | (30,322) | | Net Increase in Cash and Cash Equivalents | 12,948 | 9,430 | | Cash and Cash Equivalents at Period-end | 94,137 | 142,960 | [Notes](index=45&type=section&id=Notes) The financial statement notes provide detailed explanations of the company's organizational structure, accounting policies, segment information, taxes, earnings per share, dividends, property, plant and equipment, intangible assets, accounts receivable and payable, borrowings, share capital, subsidiary disposals, related party transactions, commitments and contingencies, and financial instruments [Company Organization and Principal Activities](index=45&type=section&id=Company%20Organization%20and%20Principal%20Activities) The company was established in Hong Kong in 1999, primarily engaged in crude oil and natural gas exploration, development, production, and sales; its ultimate controlling company is China National Offshore Oil Corporation, and it lists interests in major subsidiaries, joint ventures, and associates - The company and its subsidiaries are primarily engaged in **crude oil and natural gas exploration, development, production, and sales activities**[108](index=108&type=chunk) - The company's ultimate controlling company is **China National Offshore Oil Corporation**, established in China[109](index=109&type=chunk) - Interests in major directly or indirectly controlled subsidiaries, joint ventures, and associates, such as CNOOC China Limited, CNOOC International Limited, and Arctic LNG 2 LLC, are listed[109](index=109&type=chunk)[110](index=110&type=chunk)[111](index=111&type=chunk) [Basis of Preparation and Accounting Policies](index=48&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) The interim condensed consolidated financial statements are prepared in accordance with IAS 34/HKAS 34 and the HKEX Listing Rules, and should be read in conjunction with the annual financial statements; accounting policies and calculation methods adopted in this period are consistent with the prior year, with no significant impact from newly revised standards - These interim condensed consolidated financial statements are prepared in accordance with **International Accounting Standard 34/Hong Kong Accounting Standard 34** and the **Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited**[114](index=114&type=chunk) - The accounting policies and methods of computation adopted in the preparation of these interim condensed consolidated financial statements are **consistent with those followed in the annual financial statements** for the year ended December 31, 2024[116](index=116&type=chunk) - The adoption of revised International Financial Reporting Standards/Hong Kong Financial Reporting Standards during the period had **no significant impact** on the accounting policies, disclosures, or amounts recognized in the interim condensed consolidated financial statements of the company and its subsidiaries[116](index=116&type=chunk) [Oil and Gas Sales Revenue and Trading Revenue](index=49&type=section&id=Oil%20and%20Gas%20Sales%20Revenue%20and%20Trading%20Revenue) Oil and gas sales revenue refers to revenue from oil and gas sales less royalties and obligations to governments and other mineral right owners, while trading revenue refers to revenue from selling crude oil and natural gas attributable to foreign partners and through subsidiaries, both recognized upon delivery of oil and gas to customers - Oil and gas sales revenue is the revenue derived from oil and gas sales less royalties and obligations to governments and other mineral right owners[117](index=117&type=chunk) - Trading revenue refers to the revenue from the sale of crude oil and natural gas attributable to foreign partners under petroleum product sharing contracts and the sale of crude oil and natural gas through the company's subsidiaries[117](index=117&type=chunk) - Both oil and gas sales revenue and trading revenue are recognized when crude oil and natural gas are delivered to customers, i.e., when the customer obtains control of the crude oil and natural gas, and the company and its subsidiaries have a present right to payment and it is highly probable that the consideration will be collected[117](index=117&type=chunk) [Segment Information](index=50&type=section&id=Segment%20Information) The company discloses its principal activities through three operating segments: exploration and production, trading business, and corporate business; in H1 2025, 63% of the company's sales revenue came from customers in China - The company and its subsidiaries disclose their principal activities through three operating segments: **exploration and production, trading business, and corporate business**[118](index=118&type=chunk) Total Segment Revenue (million RMB) | Segment | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Exploration and Production | 176,440 | 188,102 | | Trading Business | 31,134 | 36,652 | | Corporate | 655 | 572 | | Eliminations | (621) | 1,444 | | Consolidated | 207,608 | 226,770 | - **63%** (H1 2024: 62%) of the sales revenue recognized by the company and its subsidiaries in the interim condensed consolidated statement of profit or loss and other comprehensive income was from customers in China[120](index=120&type=chunk) [Finance Costs](index=51&type=section&id=Finance%20Costs) In H1 2025, the company's interim condensed consolidated statement of profit or loss and other comprehensive income recognized an increase in the discounted value of abandonment provisions over time of approximately RMB 1,911 million - For the six months ended June 30, 2025, the increase in the discounted value of abandonment provisions recognized in the interim condensed consolidated statement of profit or loss and other comprehensive income was approximately **RMB 1,911 million** (H1 2024: approximately RMB 1,614 million)[121](index=121&type=chunk) [Taxation](index=51&type=section&id=Taxation) The company and its subsidiaries are subject to various taxes, including 16.5% Hong Kong and 25% China income tax (15% for high-tech enterprises), as well as VAT, resource tax, urban maintenance and construction tax, education surcharge, special oil gain levy, and mining rights transfer fees; the company is evaluating the potential impact of Pillar Two income tax - The company is subject to **16.5% income tax** on taxable profits arising or derived in Hong Kong and is recognized as a resident enterprise in China, subject to **25% China enterprise income tax**[122](index=122&type=chunk) - CNOOC Deepwater Development Limited has been re-recognized as a high-tech enterprise and is eligible for a **15% enterprise income tax rate** from 2024 to 2026[122](index=122&type=chunk) - The special oil gain levy rate is determined by the monthly weighted average price of crude oil for oil extraction enterprises, with a threshold of **USD 65/barrel**, implementing a 5-tier progressive ad valorem levy with rates ranging from **20% to 40%**[125](index=125&type=chunk) - Effective May 1, 2023, the company is required to pay mining rights transfer fees at rates ranging from **0.3% to 0.8%** of sales revenue, depending on the type of mineral resource, for exploration and exploitation of mineral resources within the territory and jurisdictional waters of the People's Republic of China[127](index=127&type=chunk) [Earnings Per Share](index=53&type=section&id=Earnings%20Per%20Share) In H1 2025, the profit used to calculate basic and diluted earnings per ordinary share was RMB 69,533 million, with a weighted average number of ordinary shares of 47,529,953,984, resulting in basic and diluted earnings per share of RMB 1.46 Earnings Per Share Calculation (million RMB) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit used to calculate basic and diluted earnings per ordinary share | 69,533 | 79,731 | | Weighted average number of ordinary shares used to calculate basic and diluted earnings per share | 47,529,953,984 | 47,566,763,984 | | Earnings per share - Basic and Diluted (RMB) | 1.46 | 1.68 | - The company had no dilutive potential ordinary shares for the six months ended June 30, 2025, and June 30, 2024[128](index=128&type=chunk) [Dividends](index=54&type=section&id=Dividends) The board declared an interim dividend of HKD 0.73 per share (tax inclusive) on August 27, 2025, totaling approximately RMB 31,602 million (tax inclusive); as a Chinese resident enterprise, the company will withhold 10% enterprise income tax on dividends distributed to non-resident enterprise H-share holders - On August 27, 2025, the board declared an interim dividend of **HKD 0.73 per share** (tax inclusive) to shareholders[129](index=129&type=chunk) - Based on the number of shares issued on the board's declaration date, the total is approximately **HKD 34,697 million** (tax inclusive) (approximately **RMB 31,602 million** (tax inclusive))[129](index=129&type=chunk) - As a Chinese resident enterprise, the company is required to **withhold enterprise income tax at a rate of 10%** when distributing dividends to non-resident enterprises (as defined by the Enterprise Income Tax Law of the People's Republic of China)[129](index=129&type=chunk) [Property, Plant and Equipment and Right-of-Use Assets](index=54&type=section&id=Property,%20Plant%20and%20Equipment%20and%20Right-of-Use%20Assets) In H1 2025, the company and its subsidiaries acquired approximately RMB 58,241 million in property, plant and equipment, and recognized RMB 1,316 million in right-of-use assets and RMB 1,312 million in lease liabilities; interests in the Australia North West Shelf (NWS) project have been pledged as collateral - For the six months ended June 30, 2025, the company and its subsidiaries acquired property, plant and equipment totaling approximately **RMB 58,241 million**[130](index=130&type=chunk) - At the commencement date of the leases, the company and its subsidiaries recognized **right-of-use assets of RMB 1,316 million** and **lease liabilities of RMB 1,312 million**[130](index=130&type=chunk) - The company and its subsidiaries' interests in the Australia North West Shelf ("NWS") project have been pledged as collateral for the company and its subsidiaries' liabilities related to that project to other partners and operators[130](index=130&type=chunk) [Intangible Assets](index=55&type=section&id=Intangible%20Assets) The company's intangible assets include software and others, right-of-use for natural gas production and processing facilities in the NWS project, trade transportation and storage contracts, mining exploration and exploitation rights, and goodwill; these assets are amortized using different methods based on their nature, with future oil and gas prices and production forecasts considered as key assumptions in assessing value in use - The company and its subsidiaries' intangible assets include **software and others, right-of-use for natural gas production and processing facilities in the NWS project, trade transportation and storage contracts, mining exploration and exploitation rights, and goodwill**[131](index=131&type=chunk) - Intangible assets related to natural gas processing rights are amortized using the **unit-of-production method** based on the total proved reserves of the related assets when commercial production of liquefied natural gas commences[131](index=131&type=chunk) - Key assumptions in assessing the value in use of the overall exploration and production assets include, but are not limited to, **future oil and gas prices, future production forecasts, future capital expenditures, future operating expense forecasts, and the determination of discount rates**[131](index=131&type=chunk) [Accounts Receivable](index=56&type=section&id=Accounts%20Receivable) As of June 30, 2025, the company's total accounts receivable amounted to RMB 45,111 million, with a bad debt provision of RMB 103 million; the vast majority of customers have good credit quality and repayment records, with no significant overdue accounts Accounts Receivable Aging and Related Bad Debt Provision Analysis (million RMB) | Aging | Accounts Receivable as of June 30, 2025 | Bad Debt Provision as of June 30, 2025 | Provision Rate (%) as of June 30, 2025 | | :--- | :--- | :--- | :--- | | Within 1 year | 45,013 | 51 | 0.11 | | 1 to 2 years | 4 | 4 | 100.00 | | 2 to 3 years | 6 | 3 | 50.00 | | Over 3 years | 88 | 45 | 51.14 | | Total | 45,111 | 103 | 0.23 | - The vast majority of customers have **good credit quality and repayment records**, and there are no significant overdue accounts[133](index=133&type=chunk) [Accounts Payable and Accrued Expenses](index=57&type=section&id=Accounts%20Payable%20and%20Accrued%20Expenses) As of June 30, 2025, the company's total accounts payable and accrued expenses amounted to RMB 70,644 million, of which RMB 63,961 million was payable to suppliers and partners; the vast majority of these accounts are within six months and are non-interest bearing Accounts Payable and Accrued Expenses (million RMB) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Amounts payable to suppliers and partners | 63,961 | 57,874 | | Amounts payable to third-party traders | 6,683 | 1,811 | | Total | 70,644 | 59,685 | - As of June 30, 2025, and December 31, 2024, the vast majority of accounts payable and accrued expenses were **within six months** and were **non-interest bearing**[134](index=134&type=chunk) [Bank and Other Borrowings](index=57&type=section&id=Bank%20and%20Other%20Borrowings) As of June 30, 2025, the company's short-term bank and other borrowings were RMB 1,328 million, and long-term bank and other borrowings were RMB 60,568 million; all bonds are fully and unconditionally guaranteed by the company, with no defaults occurring during the period Short-term Bank and Other Borrowings (million RMB) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Short-term bank and other borrowings | – | 4,303 | | Bank and other borrowings due within one year | 1,328 | 15,781 | | Total | 1,328 | 20,084 | Long-term Bank and Other Borrowings (million RMB) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Tangguh LNG Project Loan Phase III | 1,777 | 2,020 | | General borrowings | 3,711 | 3,766 | | Bonds | 55,080 | 55,457 | | Total | 60,568 | 61,243 | - All mentioned bonds are provided with a **full and unconditional guarantee** by the company[137](index=137&type=chunk) - During the period, there were **no defaults** on the principal, interest, or repayment terms of long-term bank borrowings[138](index=138&type=chunk) [Share Capital](index=59&type=section&id=Share%20Capital) As of June 30, 2025, the company's issued and fully paid share capital was 47,529,953,984 shares, equivalent to RMB 75,180 million; there were no changes in the number of shares or share capital amount during the period Issued and Fully Paid Share Capital (million RMB) | Item | Number of Shares | Equivalent of Issued Share Capital | | :--- | :--- | :--- | | As of January 1, 2024 | 47,566,763,984 | 75,180 | | Shares repurchased and cancelled | (36,810,000) | – | | As of December 31, 2024, and June 30, 2025 | 47,529,953,984 | 75,180 | | Of which: Shares listed on HKEX | 44,539,953,984 | | | Shares listed on SSE | 2,990,000,000 | | - For the six months ended June 30, 2025, there were **no changes** in the number of shares or the amount of share capital of the company[139](index=139&type=chunk) [Disposal of Subsidiaries](index=60&type=section&id=Disposal%20of%20Subsidiaries) As of June 30, 2025, CNOOC Energy Holdings U.S.A. Inc., a subsidiary of CNOOC International Ltd., has completed the closing of the 100% equity sale and purchase agreement in the United States - As of June 30, 2025, CNOOC Energy Holdings U.S.A. Inc., a subsidiary of the company's subsidiary CNOOC International Ltd. in the United States, completed the closing of the 100% equity sale and purchase agreement for CNOOC Holdings U.S.A. Inc. with an INEOS Energy subsidiary, signed in December 2024[140](index=140&type=chunk) [Related Party Transactions](index=60&type=section&id=Related%20Party%20Transactions) The company engages in a series of ongoing connected transactions with its ultimate controlling company, CNOOC Group, and its associates, including service provision and product sales, with pricing principles following government pricing or market rates; transactions also occur with CNOOC Finance Company Limited and other state-owned enterprises - The company is a subsidiary of CNOOC Group, and transactions between the company and CNOOC Group and its associates are identified as related party transactions[141](index=141&type=chunk)[142](index=142&type=chunk) - The company has entered into a comprehensive framework agreement with CNOOC Group, covering the provision of exploration, development, production, sales, management, and ancillary services, as well as the sale of oil and natural gas products and green power products[142](index=142&type=chunk)[143](index=143&type=chunk) - The basic pricing principle for related party transactions is determined through fair negotiation, based on normal commercial terms or better terms, referencing prevailing local market conditions, and adhering to government pricing or market rates[144](index=144&type=chunk)[145](index=145&type=chunk) Summary of Transactions with CNOOC Group and/or its Associates (million RMB) | Transaction Type | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Provision of Services (Exploration, Development, Production, Management, FPSO Lease) | 44,288 | 46,837 | | Sale of Oil and Natural Gas Products and Green Power Products | 116,320 | 130,791 | | Interest Income from Deposits with Finance Company | 149 | 169 | | Balance of Deposits with Finance Company (Period-end) | 21,948 | 21,922 | | Amounts Payable to CNOOC Group and Associates (Period-end) | 48,000 | 40,577 | | Borrowings from CNOOC Group and Associates (Period-end) | 1,320 | 5,630 | | Amounts Receivable from its Associates (Period-end) | 20,437 | 18,567 | - Revenue from sales to CNOOC Group and/or its associates accounted for **56% of total revenue**[147](index=147&type=chunk) - A series of transactions were conducted with other state-owned enterprises, including sales of oil and natural gas, purchases of property, plant and equipment and other assets, receipt of services, and deposits[150](index=150&type=chunk) [Commitments and

Company Business Structure [Overview of Company Business Structure](index=3&type=section&id=%E5%85%AC%E5%8F%B8%E4%B8%9A%E5%8A%A1%E6%9E%B6%E6%9E%84%E6%A6%82%E8%A7%88) This chapter outlines the company's core business layout in Mainland China, Hong Kong, Macau, and other regions, primarily covering construction general contracting, prefabricated construction, civil engineering, infrastructure asset operation, and curtain wall systems, noting that curtain wall business is operated through a listed subsidiary - The company's business scope is extensive, covering Mainland China, Hong Kong, Macau, and other regions, primarily including **construction general contracting**, **prefabricated construction**, **civil engineering**, **infrastructure asset operation**, **investment-driven contracting**, and **MEP engineering**[5](index=5&type=chunk) - Curtain wall systems and operation management businesses are operated through the listed subsidiary China State Construction Engineering Corporation Limited (Stock Code: 00830)[5](index=5&type=chunk) Board of Directors and Committees [Composition of Board and Committee Members](index=4&type=section&id=%E8%91%A3%E4%BA%8B%E5%B1%80%E4%B8%8E%E5%A7%94%E5%91%98%E4%BC%9A%E6%88%90%E5%91%98%E6%9E%84%E6%88%90) This chapter introduces the composition of the company's Board of Directors, including the Chairman and Executive Director, Non-executive Directors, Executive Directors, and Independent Non-executive Directors, and details the members and chairmen of the Audit, Remuneration, Nomination, and Sustainable Development Committees - Board members include Chairman and Executive Director Zhang Haipeng, Non-executive Directors Yan Jianguo, Ye Nan, Executive Directors Wang Xiaoguang (Chief Executive Officer), Kong Xiangzhao, and Independent Non-executive Directors Wang Huizhen, Chen Zizheng, Chen Fan[7](index=7&type=chunk) - The company has established an Audit Committee (Chairman Wang Huizhen), a Remuneration Committee (Chairman Chen Fan), a Nomination Committee (Chairman Chen Fan), and a Sustainable Development Committee (Chairman Wang Xiaoguang)[7](index=7&type=chunk)[8](index=8&type=chunk)[9](index=9&type=chunk)[10](index=10&type=chunk) Company Information [Company Basic Information and Financial Calendar](index=5&type=section&id=%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E4%BF%A1%E6%81%AF%E4%B8%8E%E8%B4%A2%E5%8A%A1%E6%97%A5%E8%AA%8C) This chapter provides basic contact information for the company's authorized representatives, company secretary, principal share registrar, registered office, Hong Kong head office, and principal place of business, along with auditor, principal bankers, listing information, and key financial dates for investors and the public - Authorized Representatives are Zhang Haipeng and Yan Jianguo, Company Secretary is Gao Xiaofeng[11](index=11&type=chunk) - Auditor is Ernst & Young, the company's shares are listed on the Stock Exchange of Hong Kong Limited with stock code 03311[12](index=12&type=chunk)[13](index=13&type=chunk) - The financial calendar includes the interim results announcement on August 20, 2025, ex-dividend date on September 16, 2025, interim dividend record date on September 17, 2025, and payment date on October 10, 2025[13](index=13&type=chunk) Chairman's Report [Business Review](index=6&type=section&id=%E4%B8%9A%E5%8A%A1%E5%9B%9E%E9%A1%A7) In H1 2025, amidst global economic uncertainties, China's economy maintained resilient growth of 5.3%, while the Group adhered to high-quality development, actively explored new growth drivers, strengthened technological application, consolidated its leading position in Hong Kong and Macau markets, innovated business models in Mainland China, and expanded its curtain wall business into Singapore, achieving steady overall performance growth - In H1 2025, China's GDP increased by **5.3%**, exceeding the **5.0%** policy target; Hong Kong's GDP increased by **3.1%**, and Macau's GDP increased by **1.8%**[14](index=14&type=chunk) - The Group's core objective is high-quality development, actively seeking new growth points, and strengthening technological moats and promoting construction technology applications[14](index=14&type=chunk) 2025 H1 Key Financial Data | Indicator | Amount (RMB) | | :--- | :--- | | New Contracts Awarded | 92.551 billion Yuan (RMB) | | Unaudited Revenue | 56.643 billion Yuan (RMB) (increased by 0.1%) | | Profit Attributable to Shareholders | 5.259 billion Yuan (RMB) (increased by 5.1%) | | Basic Earnings Per Share | 1.01 Yuan (RMB) | | Interim Dividend | 34 cents (HKD) per share | | Payout Ratio | approximately 31.1% | [Market Performance](index=7&type=section&id=%E5%B8%82%E5%9C%BA%E8%A1%A8%E7%8E%B0) The Group consolidated its leading position in Hong Kong and Macau, actively participating in public housing construction and Northern Metropolis projects, benefiting from Macau's tourism economy, while in Mainland China, it optimized management, promoted regional deep cultivation and MiC technology penetration, and expanded BIPV projects in Singapore and Mainland China through China State Construction Engineering Corporation Limited in the curtain wall market - Hong Kong market: Actively participates in public housing construction, secured two projects in Kam Sheung Road, Yuen Long, New Territories, adopting MiC technology to serve public livelihood; maintaining a leading position in the Northern Metropolis development[16](index=16&type=chunk) - Macau market: Benefiting from the booming tourism economy, secured multiple hotel renovation projects; M8 Macau No. 8 project won an international property award[16](index=16&type=chunk) - Mainland China market: Optimized management methods, promoted regional deep cultivation, the "order-based" model was first implemented in Dongguan and Jinan; MiC technology penetrated the market, secured projects including the comprehensive renovation of Beijing No. 14 Middle School and Guangzhou Nansha resettlement housing, and the Guangzhou project successfully obtained plot ratio incentives[17](index=17&type=chunk) - Curtain wall market: China State Construction Engineering Corporation Limited consolidated its core business in Hong Kong and Macau, expanded curtain wall inspection, maintenance, and upgrade services; deepened its presence in the Singapore market, secured the Changi Airport Terminal 2 hotel BIPV project; secured the largest single-unit BIPV project in China – Shenzhen Qianhai Huafa Ice and Snow World project[18](index=18&type=chunk) [Sustainable Development Management](index=8&type=section&id=%E5%8F%AF%E6%8C%81%E7%BB%AD%E5%8F%91%E5%B1%95%E7%AE%A1%E7%90%86) The Group actively practices the new development concepts of innovation, coordination, and green development, increasing R&D investment in zero-carbon buildings and green building materials, pioneering hydrogen energy application in Hong Kong's construction industry, while actively participating in social welfare initiatives with outstanding contributions from its volunteer team, and has received numerous honors in ESG ratings, maintaining industry leadership - The Group deeply practices the new development concepts of innovation, coordination, green, openness, and sharing, increases technological R&D investment in zero-carbon buildings and green building materials, actively utilizing clean energy[19](index=19&type=chunk) - China State Construction Hong Kong held the first hydrogen energy application launch ceremony in Hong Kong's construction industry, pioneering hydrogen energy application[19](index=19&type=chunk) - The Group has received multiple honors in sustainable development, including an MSCI ESG rating upgrade to **BBB**, selected for the FTSE4Good Index for **9 consecutive years**, included in S&P Global's "Sustainability Yearbook (China Edition)" for **3 consecutive years**; Mainland China ESG rating maintained at **AA**, both ranking first in the industry[20](index=20&type=chunk) [Risk Management](index=9&type=section&id=%E9%A3%8E%E9%99%A9%E7%AE%A1%E6%8E%A7) The Group aims to prevent and mitigate major risks, closely monitoring key areas and critical links, continuously improving system and mechanism construction, proactively analyzing and dynamically monitoring various risk changes, and promptly taking preventive and response measures, having revised its "Anti-Corruption Policy" and "Supplier Code of Conduct" this year to continuously enhance compliance assurance - The Group aims to prevent and mitigate major risks, improving system and mechanism construction, dynamically monitoring risks, and enhancing risk prevention and control levels[21](index=21&type=chunk) - Revised the "Anti-Corruption Policy" to prevent and combat corruption, maintaining a culture of integrity; Revised the "Supplier Code of Conduct" to standardize supplier behavior[21](index=21&type=chunk) [Financial Management](index=10&type=section&id=%E8%B4%A2%E5%8A%A1%E7%AE%A1%E7%90%86) In H1 2025, the Group's financial position remained robust, operating cash flow remained positive, and comprehensive financing costs continued to decline; China Orient Asset Management (International) Holding Limited became a strategic shareholder, strengthening the capital base; as of June 30, 2025, cash on hand was ample, net gearing ratio significantly decreased, and unutilized bank credit facilities were abundant - In H1 2025, the Group's financial position remained robust, operating cash flow remained positive, and comprehensive financing costs continued to decline[23](index=23&type=chunk) - China Orient Asset Management (International) Holding Limited became a strategic shareholder by subscribing to the Group's shares, expanded the capital base, and enhanced financial strength[23](index=23&type=chunk) 2025 H1 Key Financial Indicators as of June 30 | Indicator | Amount (RMB) | Change (vs Dec 31, 2024) | | :--- | :--- | :--- | | Cash on Hand | 33.197 billion Yuan (RMB) | increased | | Proportion of Total Assets | 12.0% | - | | Net

中期報告 Interim Report 2025 中期報告 Contents 目錄 | Corporate Information | 公司資料 | 2 | | --- | --- | --- | | Business Overview and Outlook | 業務回顧及展望 | 6 | | Financial Summary | 財務概要 | 20 | | Management Discussion and Analysis | 管理層討論與分析 | 21 | | Corporate Governance and Other Information | 企業管治及其他資料 | 30 | | Independent Review Report | 獨立審閱報告 | 51 | | Interim Condensed Consolidated Statement | 中期簡明綜合損益表 | 53 | | of Profit or Loss | | | | Interim Condensed Consolidated Statement | 中期簡明綜合全面收益表 | 54 | | of Comprehensi ...

[Company Information](index=3&type=section&id=Company%20Information) [Board of Directors and Committees](index=3&type=section&id=Board%20of%20Directors%20and%20Committees) The company's Board of Directors comprises executive, non-executive, and independent non-executive directors, with established audit, remuneration, nomination, and strategy & investment committees to ensure sound corporate governance - The Board members include executive directors such as Mr. Hou Xiaonan (CEO & President) and Mr. Huang Yan (Senior Vice President), non-executive directors like Mr. Pu Haitao (Chairman), and independent non-executive directors such as Ms. Yu Chuyuan[3](index=3&type=chunk) - The company has established Audit, Remuneration, Nomination, and Strategy & Investment Committees, each with clearly defined chairpersons and members[3](index=3&type=chunk) [Key Contacts and Offices](index=3&type=section&id=Key%20Contacts%20and%20Offices) The company is registered in the Cayman Islands, with its China headquarters in Shanghai and a principal place of business in Hong Kong, detailing important contact information for legal advisors, auditors, share registrars, and principal bankers - The company's registered office is in the Cayman Islands, with its China headquarters and principal place of business in Pudong New Area, Shanghai, and its principal place of business in Hong Kong located in Central[3](index=3&type=chunk)[4](index=4&type=chunk)[5](index=5&type=chunk) - Legal advisors are Clifford Chance and Maples and Calder, and the auditor is PricewaterhouseCoopers[3](index=3&type=chunk) - The Hong Kong share registrar is Computershare Hong Kong Investor Services Limited, and the principal bank is Bank of Communications Shanghai Huangpu Sub-branch[5](index=5&type=chunk) [Financial Performance Summary](index=5&type=section&id=Financial%20Performance%20Summary) [Key Financial Data for H1 2025](index=5&type=section&id=Key%20Financial%20Data%20for%20H1%202025) The company's H1 2025 revenue decreased by 23.9% year-on-year, and gross profit fell by 22.6%, yet operating profit and profit for the period significantly increased by 92.7% and 68.6% respectively, while non-IFRS profit attributable to equity holders decreased by 27.7% Financial Performance Summary for the Six Months Ended June 30 (RMB thousands) | Metric | 2025 (Unaudited) | 2024 (Unaudited) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 3,190,584 | 4,190,933 | -23.9% | | Gross Profit | 1,612,384 | 2,083,230 | -22.6% | | Operating Profit | 875,799 | 454,449 | 92.7% | | Profit Before Income Tax | 999,044 | 602,996 | 65.7% | | Profit for the Period | 849,565 | 503,932 | 68.6% | | Profit Attributable to Equity Holders of the Company | 849,755 | 504,303 | 68.5% | | Non-IFRS Profit Attributable to Equity Holders of the Company | 507,807 | 702,061 | -27.7% | [Chairman's Report](index=6&type=section&id=Chairman%27s%20Report) [Content Ecosystem and IP Strategy](index=6&type=section&id=Content%20Ecosystem%20and%20IP%20Strategy) The Chairman's report highlights the steady development of Yuewen's online reading content ecosystem in H1 2025, with an active creative community and continued focus on premium content strategy, leading to dominant market positions for multiple IP adaptations - In H1 2025, Yuewen's online reading content ecosystem developed steadily, with a vibrant creative community appealing to both veteran and emerging writers[7](index=7&type=chunk) - The company adheres to a premium content strategy, with **6** of the Top 10 long-form dramas by cumulative effective views across the network in H1 adapted from Yuewen IP; among animated works, **8** were adapted from Yuewen IP[7](index=7&type=chunk) - The self-produced premium drama "Drug Storm" launched on Tencent Video, with its popularity index exceeding **28,000**, receiving positive reviews from mainstream media[7](index=7&type=chunk) [AI Technology and New Business Expansion](index=6&type=section&id=AI%20Technology%20and%20New%20Business%20Expansion) AI technology significantly accelerated content internationalization, with AI-translated works accounting for over 35% of WebNovel's total novel revenue, while the company actively explores AI applications in various IP content forms and seizes new opportunities in short-form dramas and IP derivatives - AI technology significantly accelerated content internationalization, with AI-translated works accounting for over **35%** of WebNovel platform's total novel revenue during the period[7](index=7&type=chunk) - The company continues to deepen the integration of AI and content operations, launching more AI-assisted creation tools on the "Writer Assistant" creative platform and exploring AI applications in various IP content forms such as animation, video, and audiobooks[7](index=7&type=chunk) - Actively seizing new opportunities in short-form dramas and IP derivatives, the hit rate of short-form dramas significantly increased, with IP derivatives business GMV reaching **RMB 480 million** in H1, close to last year's full-year total[8](index=8&type=chunk) [Policy Impact and Future Outlook](index=6&type=section&id=Policy%20Impact%20and%20Future%20Outlook) New policies from the National Radio and Television Administration are expected to benefit the long-term sustainable development of content creation and film/TV business, with the company strengthening new business layouts and actively exploring AI applications for evergreen growth - The "Guangdian 21 Articles" new policy issued by the National Radio and Television Administration is expected to benefit industry content creation, work distribution, and online scheduling, aiding the long-term sustainable development of the film and TV business[8](index=8&type=chunk) - The company will leverage its rich IP reserves, deep industry insights, and cross-domain synergies to optimize the industry landscape, strengthen new business layouts such as short-form dramas and IP derivatives, and actively explore AI applications[8](index=8&type=chunk) [CEO's Report](index=8&type=section&id=CEO%27s%20Report) [IP Industry Trends and Company Position](index=8&type=section&id=IP%20Industry%20Trends%20and%20Company%20Position) H1 2025 saw explosive growth and ecosystem restructuring in China's IP industry, marked by prominent premium IP value, the rise of short-form dramas, and popular IP derivatives, positioning Yuewen to lead industry upgrades with its unique status and IP innovation capabilities - In H1 2025, China's IP industry experienced explosive growth and ecosystem restructuring, with key trends including the prominent value of premium IP, the rise of short-form dramas as a new monetization channel, and the widespread popularity of physical IP derivatives[11](index=11&type=chunk)[14](index=14&type=chunk) - The company, with its unique industry position, excellent IP innovation capabilities, and abundant IP reserves, is poised to deeply lead the leapfrog upgrade of China's IP ecosystem and open up new growth curves[11](index=11&type=chunk) [IP Creation and Online Business Growth](index=8&type=section&id=IP%20Creation%20and%20Online%20Business%20Growth) The online reading content ecosystem continued to thrive, with significant increases in new writers and novels, strong growth in revenue from quality works and writers, boosting user community activity, and driving growth in online business revenue and monthly paying users (MPU) - In H1 2025, the online reading platform added approximately **200 thousand writers** and **410 thousand novels**, with approximately **20 billion** new characters added[12](index=12&type=chunk) - The number of newly signed works with revenue exceeding **RMB 1 million** increased by **63%** year-on-year in H1, and the number of newly signed writers achieving average subscriptions exceeding ten thousand increased by **45%** year-on-year[12](index=12&type=chunk) - Online business revenue increased by **2.3%** year-on-year to **RMB 1.99 billion**, and MPU increased by **4.5%** year-on-year to **9.2 million people**[13](index=13&type=chunk) [IP Visualization Achievements](index=9&type=section&id=IP%20Visualization%20Achievements) The company achieved significant results in premium film/TV, animation, comics, and short-form dramas, with excellent performance from multiple IP-adapted series and animation sequels, maintaining leading positions in comic IPs, and strong growth in short-form drama business with a significantly increased hit rate - In H1, multiple Yuewen IP-adapted premium TV dramas were launched, such as "Guose Fanghua" and "Drug Storm," ranking first in popularity on their respective platforms, with **6** of the Top 10 long-form dramas by cumulative effective views across the network adapted from Yuewen IP[15](index=15&type=chunk) - In the animation sector, classic animated series sequels like "Battle Through the Heavens" performed outstandingly, with **8** of the Top 10 animated works by network-wide popularity in H1 adapted from Yuewen IP[15](index=15&type=chunk) - In the comic sector, classic IPs like "Under One Person" and "Fox Spirit Matchmaker" maintained their leading positions, while new works such as "Dao Gui Yi Xian" and "Gao Wu Jin Hua" showed impressive performance[16](index=16&type=chunk) - The short-form drama business experienced strong growth, with a significantly increased hit rate, the highest single project revenue exceeded **RMB 80 million**, total network-wide views surpassed **3 billion**, and over **2,000** online literature IPs were made available for short-form drama adaptation[17](index=17&type=chunk) [IP Commercialization and Monetization](index=10&type=section&id=IP%20Commercialization%20and%20Monetization) The IP derivatives business achieved leapfrog development, with H1 GMV reaching RMB 480 million, nearly matching last year'

Sunny Optical Technology (Group) Company Limited 舜宇光學科技（ 集團) 有限公司 2025 Interim Report 中報 Interim Report 2025 中報 CONTENTS 目錄 2 Corporate Profile 公司簡介 3 Financial Summary 財務概要 4 Management Discussion and Analysis 管理層討論與分析 28 Other Information 其他資料 46 Report on Review of Condensed Consolidated Financial Statements 簡明綜合財務報表審閱報告 48 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income 簡明綜合損益及其他全面收益表 50 Condensed Consolidated Statement of Financial Position 簡明綜合財務狀況表 52 Condensed Conso ...