[CORPORATE INFORMATION](index=2&type=section&id=CORPORATE%20INFORMATION) [Directors](index=2&type=section&id=Directors) The report details the company's Board of Directors, including executive, non-executive, and independent non-executive directors, along with the composition of its audit, remuneration, and nomination committees - The Board of Directors comprises Executive Directors Mr. Sang Kangqiao (Chairman) and Mr. Xu Wenze, Non-executive Director Ms. Chen Wenting, and Independent Non-executive Directors Mr. Lam Ka Tak, Mr. Xu Zhihao, and Mr. Huang Chengs[3](index=3&type=chunk)[4](index=4&type=chunk) - The Audit Committee is chaired by Mr. Lam Ka Tak, the Remuneration Committee by Mr. Huang Chengs, and the Nomination Committee by Mr. Sang Kangqiao[3](index=3&type=chunk)[4](index=4&type=chunk) [Registered Office and Principal Place of Business](index=3&type=section&id=Registered%20Office%20and%20Principal%20Place%20of%20Business) The company is registered in the Cayman Islands with its principal place of business located in Far East Finance Centre, Harcourt Road, Hong Kong - The company's registered office is in the Cayman Islands, with its principal place of business in Hong Kong at Unit 25B03, 25/F, Far East Finance Centre, 16 Harcourt Road[5](index=5&type=chunk)[6](index=6&type=chunk) [Principal Bankers and Auditor](index=3&type=section&id=Principal%20Bankers%20and%20Auditor) The company's principal bankers include Hang Seng Bank, CITIC Bank International, and ICBC (Asia), with Deloitte Touche Tohmatsu as its auditor - Principal bankers include Hang Seng Bank, CITIC Bank International, and Industrial and Commercial Bank of China (Asia)[6](index=6&type=chunk)[7](index=7&type=chunk) - The auditor is Deloitte Touche Tohmatsu, Certified Public Accountants and Registered Public Interest Entity Auditor[6](index=6&type=chunk)[7](index=7&type=chunk) [Stock Code and Company's Website](index=3&type=section&id=Stock%20Code%20and%20Company%27s%20Website) The company's stock code is **1483**, and its official website is www.netago.hk - The company's stock code is **1483**[6](index=6&type=chunk)[7](index=7&type=chunk) - The company's website is www.netago.hk[6](index=6&type=chunk)[7](index=7&type=chunk) [FINANCIAL HIGHLIGHTS](index=4&type=section&id=FINANCIAL%20HIGHLIGHTS) For the six months ended June 30, 2025, the company's revenue grew **73.0%** to **HK$181 million**, achieving a turnaround to profit from continuing operations and a significant increase in profit attributable to equity holders to **HK$47.535 million** from a loss in the prior period, with no dividends declared 2025 Interim Financial Highlights | Metric | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 180,697 | 104,428 | +73.0% | | Profit from Continuing Operations (Attributable to Shareholders) | 22,670 | (4,225) | Turnaround to profit | | Profit Attributable to Equity Holders | 47,535 | (4,811) | Turnaround to profit | | Basic and Diluted EPS from Continuing Operations | 3.1 HK cents | - | - | | Basic and Diluted EPS | 6.4 HK cents | - | - | | Dividend | None | None | - | [INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2025](index=5&type=section&id=INTERIM%20RESULTS%20FOR%20THE%20SIX%20MONTHS%20ENDED%2030%20JUNE%202025) [CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20COMPREHENSIVE%20INCOME) For the six months ended June 30, 2025, the company's revenue surged **73.0%** to **HK$181 million**, gross profit increased nearly fourfold, continuing operations achieved a **HK$22.67 million** profit, and discontinued operations recorded a **HK$24.865 million** profit primarily from subsidiary disposal gains, resulting in a **HK$47.349 million** total comprehensive income attributable to equity holders, a turnaround from loss Condensed Consolidated Statement of Comprehensive Income (Six Months Ended June 30) | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 180,697 | 104,428 | +73.0% | | Cost of Revenue | (147,258) | (97,334) | +51.3% | | Gross Profit | 33,439 | 7,094 | +371.4% | | General and Administrative Expenses | (27,564) | (12,113) | +127.5% | | Selling and Marketing Expenses | (9,834) | - | New | | Gain/(Loss) on Disposal of Financial Assets at Fair Value Through Profit or Loss | 21,033 | (1,041) | Turnaround to profit | | Fair Value Gain/(Loss) on Financial Assets at Fair Value Through Profit or Loss | 3,696 | 616 | +500.0% | | Operating Profit/(Loss) | 20,940 | (5,801) | Turnaround to profit | | Finance Income – Net | (1,742) | 902 | Loss widened | | Profit/(Loss) Before Income Tax | 19,198 | (4,899) | Turnaround to profit | | Income Tax Expense | (808) | (2,179) | -62.9% | | Profit/(Loss) from Continuing Operations | 18,390 | (7,078) | Turnaround to profit | | Profit/(Loss) from Discontinued Operations | 24,865 | (586) | Turnaround to profit | | Profit/(Loss) for the Period | 43,255 | (7,664) | Turnaround to profit | | Profit/(Loss) Attributable to Owners of the Company | 47,535 | (4,811) | Turnaround to profit | | Non-controlling Interests | (4,280) | (2,853) | +50.0% | | Total Comprehensive Income/(Expense) Attributable to Owners of the Company | 47,349 | (9,957) | Turnaround to profit | [CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION](index=9&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20FINANCIAL%20POSITION) As of June 30, 2025, total assets slightly increased, non-current assets decreased due to reduced intangible and deferred tax assets, while current assets significantly grew, driven by trade receivables and cash and cash equivalents, leading to an increase in total equity and a slight decrease in total liabilities from reduced non-current liabilities Condensed Consolidated Statement of Financial Position (As of June 30) | Metric | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | **ASSETS** | | | | | Total Non-current Assets | 307,164 | 388,820 | -21.0% | | Property, Plant and Equipment | 2,160 | 4,585 | -52.9% | | Deferred Tax Assets | - | 6,137 | -100.0% | | Intangible Assets | 282,985 | 356,714 | -20.7% | | Total Current Assets | 675,068 | 588,688 | +14.7% | | Trade Receivables | 209,080 | 140,731 | +48.6% | | Financial Assets at Fair Value Through Profit or Loss | 35,275 | 94,707 | -62.8% | | Cash and Cash Equivalents | 324,702 | 210,486 | +54.3% | | **TOTAL ASSETS** | **982,232** | **977,508** | **+0.5%** | | **EQUITY** | | | | | Equity Attributable to Owners of the Company | 346,746 | 317,820 | +9.1% | | Non-controlling Interests | 26,314 | 30,594 | -14.0% | | **TOTAL EQUITY** | **373,060** | **348,414** | **+7.1%** | | **LIABILITIES** | | | | | Total Non-current Liabilities | 83,418 | 182,244 | -54.2% | | Total Current Liabilities | 525,754 | 446,850 | +17.7% | | Trade Payables | 40,013 | 14,425 | +177.4% | | Shareholder Loans | 122,016 | 119,085 | +2.5% | | Related Party Loans | 3,512 | 11,277 | -68.9% | | **TOTAL LIABILITIES** | **609,172** | **629,094** | **-3.2%** | | **TOTAL EQUITY AND LIABILITIES** | **982,232** | **977,508** | **+0.5%** | [CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY](index=12&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CHANGES%20IN%20EQUITY) For the six months ended June 30, 2025, equity attributable to owners increased from **HK$318 million** at the beginning of the period to **HK$347 million**, primarily due to profit contributions, despite share repurchases and currency translation differences Condensed Consolidated Statement of Changes in Equity (Six Months Ended June 30) | Metric | June 30, 2025 (HK$ thousand) | Jan 1, 2024 (HK$ thousand) | Change (HK$ thousand) | | :--- | :--- | :--- | :--- | | **Equity Attributable to Owners of the Company** | | | | | Share Capital | 7,395 | 7,950 | (555) | | Share Premium | 559,440 | 628,837 | (69,397) | | Reserves | (220,089) | (318,967) | 98,878 | | **Subtotal** | **346,746** | **317,820** | **28,926** | | Non-controlling Interests | 26,314 | 30,594 | (4,280) | | **Total Equity** | **373,060** | **348,414** | **24,646** | | Profit/(Loss) for the Period | 47,535 | (4,811) | 52,346 | | Currency Translation Differences | (186) | (5,146) | 4,960 | | Shares Repurchased | (69,952) | - | (69,952) | | Disposal of Subsidiaries | 52,404 | - | 52,404 | [CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS](index=13&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CASH%20FLOWS) For the six months ended June 30, 2025, net cash outflow from operating activities decreased, net cash inflow from investing activities significantly increased, and net cash flow from financing activities shifted from inflow to outflow, with cash and cash equivalents notably rising **54.3%** to **HK$325 million** at period-end Condensed Consolidated Statement of Cash Flows (Six Months Ended June 30) | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | | :--- | :--- | :--- | :--- | | Net Cash (Outflow)/Inflow from Operating Activities | (23,561) | (71,205) | 47,644 | | Net Cash Inflow from Investing Activities | 139,967 | 13,472 | 126,495 | | Net Cash Inflow/(Outflow) from Financing Activities | (10,848) | 115,889 | (126,737) | | Increase/(Decrease) in Cash and Cash Equivalents | 105,558 | 58,156 | 47,402 | | Cash and Cash Equivalents at Beginning of Period | 210,486 | 245,234 | (34,748) | | Currency Translation Differences | 8,658 | (1,874) | 10,532 | | Cash and Cash Equivalents at End of Period | 324,702 | 301,516 | 23,206 | [NOTES TO THE INTERIM FINANCIAL INFORMATION](index=14&type=section&id=NOTES%20TO%20THE%20INTERIM%20FINANCIAL%20INFORMATION) [1. GENERAL INFORMATION](index=14&type=section&id=1.%20GENERAL%20INFORMATION) The company was incorporated in the Cayman Islands in 2013 and listed on the Main Board of the Hong Kong Stock Exchange, primarily engaged in investment holding, with subsidiaries in media advertising and marketing, environmental maintenance, and trading businesses - The company was incorporated in the Cayman Islands on June 20, 2013, and listed on the Main Board of The Stock Exchange of Hong Kong[40](index=40&type=chunk)[41](index=41&type=chunk)[43](index=43&type=chunk) - Its principal business is investment holding, with subsidiaries engaged in media advertising and marketing, environmental maintenance, and trading businesses[41](index=41&type=chunk)[43](index=43&type=chunk) [2. BASIS OF PREPARATION AND MATERIAL ACCOUNTING POLICIES](index=15&type=section&id=2.%20BASIS%20OF%20PREPARATION%20AND%20MATERIAL%20ACCOUNTING%20POLICIES) The interim financial information is prepared in accordance with HKAS 34 and the historical cost convention, with accounting policies consistent with the 2024 annual consolidated financial statements, except for new HKFRS amendments effective this period - The interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' and on a historical cost basis[44](index=44&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk) - This period, the Group first applied amendments to Hong Kong Financial Reporting Standards issued by the HKICPA, which had no significant impact on the financial position and performance[48](index=48&type=chunk)[49](index=49&type=chunk) [3. SEGMENT INFORMATION](index=17&type=section&id=3.%20SEGMENT%20INFORMATION) The company's continuing operations are segmented into environmental maintenance, media advertising and marketing, and trading, with media advertising and marketing revenue significantly increasing this period while environmental maintenance revenue declined, and property leasing and medical device sales businesses were disposed of and classified as discontinued operations - The Group's continuing operations are divided into three segments: environmental maintenance, media advertising and marketing, and trading businesses[54](index=54&type=chunk)[55](index=55&type=chunk) - The property leasing business was disposed of during

[Announcement Overview](index=1&type=section&id=Announcement%20Overview) This announcement provides supplementary information regarding the share option scheme in the 2024 annual report and confirms other details remain unchanged [Disclaimer and Company Information](index=1&type=section&id=Disclaimer%20and%20Company%20Information) This section outlines the disclaimer from HKEX and provides basic registration details for SV Vision Limited - Hong Kong Exchanges and Clearing Limited assumes no responsibility for the content of this announcement and makes no statement regarding its accuracy or completeness[1](index=1&type=chunk) - Company name: SV Vision Limited, incorporated in the Cayman Islands, stock code: **8429**[2](index=2&type=chunk) [Purpose of Supplementary Announcement](index=1&type=section&id=Purpose%20of%20Supplementary%20Announcement) This announcement supplements the 'Share Option Scheme' section of SV Vision Limited's 2024 annual report - This announcement supplements SV Vision Limited's annual report for the year ended December 31, 2024[3](index=3&type=chunk)[4](index=4&type=chunk) - The supplementary content focuses on the 'Share Option Scheme' section within the Directors' Report of the annual report[4](index=4&type=chunk) [Supplementary Details on Share Option Scheme](index=1&type=section&id=Supplementary%20Details%20on%20Share%20Option%20Scheme) The share option scheme has no minimum vesting period, but the Board may impose conditions like minimum holding periods or performance targets - The Share Option Scheme does not set any minimum vesting period requirement[5](index=5&type=chunk) - The Board may, at its absolute discretion, select and stipulate grant conditions, including but not limited to any minimum period for which share options must be held and/or any performance targets that must be achieved before exercise[5](index=5&type=chunk) [Statement on Unchanged Information](index=1&type=section&id=Statement%20on%20Unchanged%20Information) This supplementary announcement does not affect other information in the 2024 annual report, which remains unchanged except as disclosed - The information contained in this supplementary announcement does not affect other information presented in the 2024 annual report[5](index=5&type=chunk) - Save as disclosed above, all other information in the 2024 annual report remains unchanged[5](index=5&type=chunk) [Board Members and Compliance Statement](index=1&type=section&id=Board%20Members%20and%20Compliance%20Statement) This section lists the Board members and confirms compliance with GEM Listing Rules, with directors assuming full responsibility for the announcement's accuracy - The Board members include: Executive Director Ms. Wu Chan Tak Tsz; Non-executive Director Mr. Chow Sai Yiu; Independent Non-executive Directors Mr. Yip Tin Chi, Mr. Hung Hing Lun, and Mr. Cao Yu[5](index=5&type=chunk) - The information in this announcement is published in compliance with the Rules Governing the Listing of Securities on GEM of The Stock Exchange of Hong Kong Limited[5](index=5&type=chunk) - The Directors collectively and individually accept full responsibility for the information contained in this announcement, confirming it is accurate, complete, and not misleading or fraudulent in all material respects[5](index=5&type=chunk) [Announcement Publication Details](index=1&type=section&id=Announcement%20Publication%20Details) This announcement will be published on the HKEX website and the company's website for at least seven days - This announcement will be published on the 'Latest Listed Company Announcements' page of the website of The Stock Exchange of Hong Kong Limited (https://www.hkexnews.hk) for at least seven consecutive days from its publication date[6](index=6&type=chunk) - This announcement will also be published on the Company's website (https://svvision.io)[6](index=6&type=chunk)

中期報告 2025 股份代號 : 0086 關於我們 新鴻基有限公司（香港聯交所股份代號：86）（「新鴻基公司」或 「本公司」，連同其附屬公司「本集團」）是一家領先的香港金融機 構，在另類投資和財富管理領域備受肯定。新鴻基公司成立於 1969年，其多元化的投資組合，涵蓋公開市場、信貸和另類投資 策略（其中包括房地產和私募股權），締造長期經風險調整回報。 憑藉其紮根亞洲的傳承，新鴻基公司支持和培育該地區優秀且具 專業能力的新晉資產管理公司，賦能他們實現卓越表現。新鴻基 公司亦利用其長久以來建立的投資業務專長和豐富資源，透過其 家族辦公室解決方案，為理念一致的合作伙伴和超高淨值投資者 提供量身定製的投資解決方案。截至2025年6月30日，本集團的 資產總值約為377億港元。 目錄 2 管理層討論及分析 18 董事之權益 21 主要股東及其他人士之權益 22 企業管治 23 其他資料 25 簡明綜合財務報表之審閱報告 26 簡明綜合財務報表 30 簡明綜合財務報表附註 51 公司資料 管理層討論及分析 財務摘要1 | | 截至下列日期 | | | 截至 | | --- | --- | --- | --- | --- ...

436 2025 INTERIM REPORT 中期業績報告 Contents 目錄 2 Corporate Information 公司資料 5 Management Discussion and Analysis 管理層討論及分析 5 Financial Highlights 財務摘要 6 Business Review 業務回顧 11 Financial Review 財務回顧 26 Corporate Governance and Other Information 企業管治及其他資料 43 Report on Review of Interim Financial Report 中期財務報告之審閱報告 45 Condensed Consolidated Statement of Profit or Loss 簡明綜合損益表 46 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 47 Condensed Consolidated Statement of F ...

Tianjin Tianbao Energy Co., Ltd.* 天津天保能源股份有限公司 ( 於中華人民共和國註冊成立的股份有限公司 ) 股份代號 : 1671 * 僅供識別 中期報告 2025 Interim Report 2025 * For identication purposes only 天津天保能源股份有限公司 (a joint stock company incorporated in the People's Republic of China with limited liability) Stock Code : 1671 Tianjin Tianbao Energy Co., Ltd.* INTERIM REPO RT 中 期 報 告 2025 Tianjin Tianbao Energy Co., Ltd. * 天 津 天 保 能 源 股 份 截至2025年 6月30日止六個月 截至2024年 6月30日止六個月 0 200 400 600 800 1,000 178.7 988.8 有 限 公 司 目錄 | | 頁次 | | --- | --- | | 財務摘要 | 2 | | ...

[Corporate Information](index=4&type=section&id=Corporate%20Information) This section provides fundamental details about the company's governance, including board members, auditors, and stock exchange listing information [Corporate Information](index=4&type=section&id=Corporate%20Information) This chapter provides basic information about the company's board members, company secretary, registered office, headquarters and principal place of business in Hong Kong, major banks, lawyers, auditors, share registrar, website, public relations consultant, and share information - Executive Directors include **Zhu Fugang (Chairman)**, **Liang Haidong (CEO)**, and **Huang Chaoxiong**[4](index=4&type=chunk) - The company's auditor is **KPMG**[8](index=8&type=chunk) - The company's shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited, stock code **1257**[11](index=11&type=chunk) [Financial Highlights](index=7&type=section&id=Financial%20Highlights) This section summarizes the key financial performance and position for the six months ended June 30, 2025, showing a decrease in revenue and EBITDA, but a significant increase in profit attributable to equity holders of the company, along with increases in total assets, shareholders' equity, and cash and bank balances [Financial Highlights](index=7&type=section&id=Financial%20Highlights) This chapter summarizes the key financial performance and financial position for the six months ended June 30, 2025, showing a decrease in revenue and EBITDA, but a significant increase in profit attributable to equity holders of the company, along with increases in total assets, shareholders' equity, and cash and bank balances 1H 2025 Financial Highlights | Metric | 1H 2025 (HKD thousands) | 1H 2024 (HKD thousands) | Change % | | :--- | :--- | :--- | :--- | | Revenue | 3,400,122 | 3,505,577 | -3% | | EBITDA | 974,366 | 1,100,415 | -11% | | Profit attributable to equity holders of the company | 190,791 | 143,925 | 33% | | Return on shareholders' funds — half-year (%) | 1.93 | 1.27 | 0.66 ppt | | Basic earnings per share (HK cents) | 9.23 | 6.97 | 33% | | **Financial Position (as of June 30)** | 2025 (HKD thousands) | 2024 (HKD thousands) | Change % | | Total assets | 37,739,969 | 36,331,601 | 4% | | Total liabilities | 25,302,524 | 24,669,301 | 3% | | Equity attributable to equity holders of the company | 10,142,825 | 9,609,839 | 6% | | Net asset value per share (HKD) | 4.91 | 4.65 | 6% | | Cash and bank balances | 2,610,492 | 1,673,716 | 56% | | Gearing ratio (%) | 67.04 | 67.90 | -0.86 ppt | | Current ratio (%) | 129.32 | 125.40 | 3.92 ppt | [Management Discussion and Analysis](index=8&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an in-depth analysis of the Group's operational performance, market expansion, technological innovation, operational management, risk management, ESG initiatives, financial performance, financing activities, and business outlook for the period [Operating Results](index=8&type=section&id=Operating%20Results) Despite the complex and volatile international economic environment, the Group achieved stable and improving operating results in the first half of 2025, actively responding to the national "dual carbon" strategy and "new quality productive forces" development direction, deepening its "second entrepreneurship" to transform into a technology-led environmental enterprise, and achieving both quality and efficiency through optimizing operational efficiency and exploring the "environmental protection + clean energy" model - The Group firmly implements the national "dual carbon" strategy and ecological civilization construction arrangements, fully promoting its transformation into a **technology-led environmental enterprise**[14](index=14&type=chunk) - As of June 30, 2025, the Group has implemented **142 environmental investment projects** with a total investment of approximately **RMB 30.65 billion**; it has cumulatively undertaken **70 light-asset projects** such as environmental remediation, involving a total contract value of approximately **RMB 1.855 billion**[16](index=16&type=chunk)[18](index=18&type=chunk) [Market Expansion](index=10&type=section&id=Market%20Expansion) The Group actively promotes its "second entrepreneurship" around the core development strategy of "technological, international, and ecological," focusing on "clean energy" as its primary business, strengthening the coordinated development of traditional advantageous businesses and emerging business demonstrations, and achieving significant progress in heating, bio-natural gas, environmental remediation, and power sales businesses, with continuous expansion of installed capacity for photovoltaic and wind power projects - Added annual heating capacity of **520,000 tons**, expanded the first bio-natural gas project, adding an annual bio-natural gas production capacity of **10 million cubic meters**[19](index=19&type=chunk)[20](index=20&type=chunk) - Added environmental remediation business contract value of approximately **RMB 128 million**, and power sales business completed contracted electricity volume of **750 million kWh** for the year[19](index=19&type=chunk)[20](index=20&type=chunk) - As of June 30, 2025, the total installed capacity of photovoltaic power generation projects reached **176.12 MW** (including 13 projects in Hong Kong with a total designed installed capacity of 3.60 MW), and the total installed capacity of wind power generation projects was **96 MW**[19](index=19&type=chunk)[20](index=20&type=chunk) [Technological Innovation](index=11&type=section&id=Technological%20Innovation) The Group firmly takes technological innovation as its core development engine, focusing on key areas such as bio-natural gas, biomass gasification for heating, and biomass-to-green methanol, collaborating with universities and research institutes like the Chinese Academy of Sciences to successfully develop and apply multiple cutting-edge technologies, and partnering with Alibaba Cloud to build a "Virtual Power Plant and Power Trading Auxiliary Decision Platform," continuously building core technological barriers and an industrial ecosystem - Key focus areas include bio-natural gas, biomass gasification for heating, biomass-to-green methanol, biomass-to-sugar, efficient and clean combustion of biomass boilers, and "virtual power plant + zero-carbon industrial park"[21](index=21&type=chunk)[22](index=22&type=chunk) - Developed efficient anaerobic fermentation technology for biomass to produce natural gas, achieving the first bio-natural gas project, and jointly built a "Virtual Power Plant and Power Trading Auxiliary Decision Platform" based on AI algorithm technology with Alibaba Cloud[21](index=21&type=chunk)[22](index=22&type=chunk) - As of June 30, 2025, the Group held a total of **128 authorized patents** (including 58 invention patents and 70 utility model patents), and **5 software copyrights**[21](index=21&type=chunk)[22](index=22&type=chunk) [Operations Management](index=12&type=section&id=Operations%20Management) The Group continuously strengthens its refined operational management capabilities, deepens cost reduction and efficiency improvement, actively expands the heating market and green certificate trading channels in biomass comprehensive utilization, optimizes fuel quality and procurement costs; in hazardous and solid waste treatment, it adopts a strategy of both quality improvement and efficiency enhancement and asset optimization to strengthen project risk resistance; and actively promotes centralized digital operation and maintenance management of zero-carbon photovoltaic projects to ensure safe production and compliance with emission standards - In biomass comprehensive utilization, actively expanded the heating market, continuously explored green certificate trading channels, and optimized both fuel quality and procurement costs by tapping into local fuel resources and strengthening quality control[23](index=23&type=chunk)[24](index=24&type=chunk) - In hazardous and solid waste treatment, adopted a strategy of both quality improvement and efficiency enhancement and asset optimization, strengthening the risk resistance of operating projects through organizational optimization, implementing "one enterprise, one policy," and promoting the disposal of inefficient and ineffective assets[23](index=23&type=chunk)[24](index=24&type=chunk) - Zero-carbon photovoltaic projects achieved centralized operation and maintenance management for **7 centralized and 72 distributed sites**, continuously improving photovoltaic operation and maintenance efficiency[23](index=23&type=chunk)[24](index=24&type=chunk) [Risk Management and ESG](index=13&type=section&id=Risk%20Management%20and%20ESG) The Group integrates comprehensive risk management into its development strategy, systematically addressing international political and economic changes and domestic transformation challenges, and incorporating ESG-related risks into key controls. During the review period, the Group deepened climate-related risk management, advanced TCFD work, and received multiple honors for its excellent ESG performance, while continuously deepening its social responsibility of opening environmental facilities to the public - Integrated comprehensive risk management into its development strategy, revised the "Risk Factor List" based on risk assessment results, and defined the scope of "key controlled risks"[25](index=25&type=chunk)[26](index=26&type=chunk) - Deepened climate-related risk management, advanced TCFD work, identified and assessed climate-related risks and opportunities through scenario analysis, and established a TCFD working group[27](index=27&type=chunk)[28](index=28&type=chunk) - Awarded "**2025 ESG Model Enterprise Award**," received the "**Plan Partner**" award from Plan International for the fourth time, and achieved improved ESG ratings from both Wind and China Securities Index[29](index=29&type=chunk) - As of June 30, 2025, the company had officially opened **47 projects** to the public, cumulatively held **79 offline public open-day events**, and received a total of **1,635 person-times**[30](index=30&type=chunk)[31](index=31&type=chunk) [Overview of Financial Performance](index=16&type=section&id=Overview%20of%20Financial%20Performance) In the first half of 2025, the Group's revenue was approximately HKD 3.40 billion, a year-on-year decrease of 3%; EBITDA was approximately HKD 974 million, a year-on-year decrease of 11%. However, profit attributable to equity holders of the company significantly increased by 33% year-on-year to approximately HKD 191 million, primarily due to cost reduction and efficiency improvement measures. The Group's financial indicators remained robust, with ample cash and bank balances 1H 2025 Financial Performance | Metric | 1H 2025 (HKD thousands) | 1H 2024 (HKD thousands) | Change % | | :--- | :--- | :--- | :--- | | Revenue | 3,400,122 | 3,505,577 | -3% | | EBITDA | 974,366 | 1,100,415 | -11% | | Profit attributable to equity holders of the company | 190,791 | 143,925 | 33% | | Basic earnings per share (HK cents) | 9.23 | 6.97 | 33% | - The decrease in revenue was mainly due to reduced construction service revenue, as well as the slower-than-expected recovery of the domestic hazardous and solid waste treatment market and intense industry competition leading to continuous decline in treatment unit prices[33](index=33&type=chunk)[35](index=35&type=chunk) - The increase in profit attributable to equity holders of the company was due to the Group's efforts to tap into cost reduction potential during the period, resulting in reduced operating costs[33](index=33&type=chunk)[35](index=35&type=chunk) - As of June 30, 2025, cash and bank balances were approximately **HKD 2.61 billion**, with available cash and unused bank loan facilities totaling approximately **HKD 9.692 billion**[32](index=32&type=chunk)[34](index=34&type=chunk) [Financing Activities](index=17&type=section&id=Financing%20Activities) In the first half of 2025, the Group actively engaged in financing activities, successfully issuing the first phase of carbon-neutral green asset-backed special plans (ABS) and two tranches of green medium-term notes, raising a total of RMB 2 billion, with proceeds primarily used to supplement working capital, repay interest-bearing loans, and invest in environmental projects, further optimizing its capital structure and liquidity - In January 2025, the first phase of the carbon-neutral green asset-backed special plan for renewable energy electricity price surcharge subsidies was established, with a priority asset-backed securities issuance size of **RMB 630 million** and a coupon rate of **1.79%**[37](index=37&type=chunk)[38](index=38&type=chunk) - In February 2025, the first tranche of 2025 green medium-term notes totaling **RMB 1 billion** was issued, with a maturity of 3+N years and a fixed annual coupon rate of **2.39%** for the first three interest-bearing years[39](index=39&type=chunk)[41](index=41&type=chunk) - In May 2025, the second tranche of 2025 green medium-term notes totaling **RMB 1 billion** was issued, with a maturity of 3+2 years and a coupon rate of **1.98%** per annum[40](index=40&type=chunk)[42](index=42&type=chunk) [Business Review](index=18&type=section&id=Business%20Review) The Group's total revenue in the first half of 2025 was approximately HKD 3.40 billion, with operating service revenue accounting for 94% and construction service revenue significantly decreasing by 74%. This chapter provides a detailed review of the operating conditions, financial performance, and key operating data for the four core business segments: biomass comprehensive utilization, hazardous and solid waste treatment, environmental remediation, and photovoltaic and wind power generation 1H 2025 Revenue Composition | Type of Revenue | 1H 2025 (HKD thousands) | 1H 2024 (HKD thousands) | Change % | % of Total Revenue (2025) | | :--- | :--- | :--- | :--- | :--- | | Construction Services | 46,488 | 178,507 | -74% | 1% | | Operating Services | 3,189,611 | 3,158,989 | 1% | 94% | | Finance Income | 164,023 | 168,081 | -2% | 5% | | **Total Revenue** | **3,400,122** | **3,505,577** | **-3%** | **100%** | [Biomass Integrated Utilization](index=20&type=section&id=Biomass%20Integrated%20Utilization) The Group's biomass integrated utilization business performed strongly in the first half of 2025, with EBITDA increasing by 15% year-on-year and net profit increasing by 31% year-on-year, primarily due to the focused development of heating business, improved fuel quality, and reduced operating costs. As of the end of the period, this segment had 57 projects, with a total designed installed power generation capacity of 1,069 MW, and a significant increase in steam supply - As of June 30, 2025, the Group had **57 biomass integrated utilization projects**, with a total investment of approximately **RMB 17.354 billion** and a total designed installed power generation capacity of **1,069 MW**[53](index=53&type=chunk) - In the first half of 2025, biomass integrated utilization projects contributed approximately **HKD 1.022 billion in EBITDA** (a year-on-year increase of **15%**) and approximately **HKD 626 million in net profit** (a year-on-year increase of **31%**)[54](index=54&type=chunk)[55](index=55&type=chunk) Biomass Integrated Utilization Key Operating Data | Metric | 1H 2025 | 1H 2024 | Change % | | :--- | :--- | :--- | :--- | | On-grid electricity (MWh) | 3,265,205 | 3,176,136 | 3% | | Biomass raw material processing volume (tons) | 3,742,000 | 3,883,000 | -4% | | Household waste processing volume (tons) | 2,074,000 | 2,057,000 | 1% | | Steam supply volume (tons) | 1,773,000 | 1,328,000 | 34% | [Hazardous and Solid Waste Treatment](index=22&type=section&id=Hazardous%20and%20Solid%20Waste%20Treatment) The Group's hazardous and solid waste treatment business faced a severe market situation in the first half of 2025, with EBITDA decreasing by 76% year-on-year and net loss increasing by 28% year-on-year, mainly due to weak market recovery, intensified industry competition, continuous pressure on treatment unit prices, and losses from the disposal of some inefficient assets. Despite these challenges, the Group continued to tap into potential for cost reduction and efficiency improvement, with a significant decrease in unit costs - As of June 30, 2025, the Group had **48 hazardous and solid waste treatment projects**, with a total investment of approximately **RMB 11.257 billion** and a total designed treatment capacity of approximately **2,334,876 tons per annum**[61](index=61&type=chunk) - In the first half of 2025, hazardous and solid waste treatment projects contributed approximately **HKD 26.738 million in EBITDA** (a year-on-year decrease of **76%**) and recorded a net loss of approximately **HKD 175 million** (an increase of **28%** compared to the loss in the same period last year)[62](index=62&type=chunk)[63](index=63&type=chunk) - The increase in loss was mainly due to the weak recovery of the domestic hazardous and solid waste treatment market, intensified industry competition, continuous pressure on treatment unit prices, sustained operating losses for some projects, and losses incurred from the disposal of inefficient and ineffective assets during the period[62](index=62&type=chunk)[63](index=63&type=chunk) Hazardous and Solid Waste Treatment Key Operating Data | Metric | 1H 2025 | 1H 2024 | Change % | | :--- | :--- | :--- | :--- | | Hazardous and solid waste treatment volume (tons) — harmless disposal | 212,000 | 217,000 | -2% | | Hazardous and solid waste treatment volume (tons) — resource comprehensive utilization | 27,300 | 30,200 | -10% | | Sales volume of resource utilization products (tons) | 7,300 | 6,500 | 12% | | On-grid electricity (MWh) | 13,039 | 14,023 | -7% | | Steam supply volume (tons) | 403,000 | 379,000 | 6% | [Environmental Remediation](index=24&type=section&id=Environmental%20Remediation) The Group's environmental remediation business recorded a loss before interest, tax, depreciation, and amortization (LBITDA) that increased by 820% year-on-year and a net loss that increased by 2,732% year-on-year in the first half of 2025, primarily due to slower-than-expected market development and goodwill impairment. Despite the challenges, the Group seized policy opportunities, actively expanded quality projects, and achieved year-on-year growth in contract value - As of June 30, 2025, the Group had **19 ongoing environmental remediation projects**, involving a total contract value of approximately **RMB 814 million**[69](index=69&type=chunk)[71](index=71&type=chunk) - In the first half of 2025, environmental remediation projects recorded an **LBITDA of approximately HKD 59.052 million** (an increase in loss of **820%** compared to the same period last year) and a **net loss of approximately HKD 68.064 million** (an increase in loss of **2,732%** compared to the same period last year)[70](index=70&type=chunk)[72](index=72&type=chunk) - The increase in loss was mainly due to slower-than-expected development of the environmental remediation market, sustained operating losses for projects, leading to goodwill impairment losses[70](index=70&type=chunk)[72](index=72&type=chunk) - During the review period, the Group seized policy opportunities, strengthened market layout and technological innovation, actively expanded quality projects, and achieved year-on-year growth in environmental remediation contract value[70](index=70&type=chunk)[72](index=72&type=chunk) [Photovoltaic and Wind Power Generation](index=26&type=section&id=Photovoltaic%20and%20Wind%20Power%20Generation) The Group's photovoltaic and wind power generation business saw both EBITDA and net profit decrease by 2% year-on-year in the first half of 2025, primarily due to reduced on-grid electricity from wind power projects affected by difficulties in electricity consumption in Shanxi Province, and increased maintenance costs. As of the end of the period, this segment had 33 photovoltaic projects and 2 wind power projects, with a total designed installed power generation capacity of 246.66 MW - As of June 30, 2025, the Group had **33 operational and completed photovoltaic power generation projects** and **2 operational wind power projects**, with a total designed installed power generation capacity of **246.66 MW**[73](index=73&type=chunk)[75](index=75&type=chunk) - In the first half of 2025, photovoltaic and wind power projects contributed approximately **HKD 86.761 million in EBITDA** (a year-on-year decrease of **2%**) and approximately **HKD 34.208 million in net profit** (a year-on-year decrease of **2%**)[74](index=74&type=chunk)[75](index=75&type=chunk) - The decrease in profit was mainly due to reduced on-grid electricity from wind power projects affected by difficulties in electricity consumption in Shanxi Province, and increased maintenance costs[74](index=74&type=chunk)[75](index=75&type=chunk) Photovoltaic and Wind Power Generation Key Operating Data | Metric | 1H 2025 | 1H 2024 | Change % | | :--- | :--- | :--- | :--- | | On-grid electricity (MWh) | 145,970 | 144,832 | 1% | [Business Outlook](index=27&type=section&id=Business%20Outlook) Looking ahead, the Group will adhere to the operating principle of "seeking progress while maintaining stability, and promoting stability through practical efforts," focusing on the "clean energy" strategy to build a dual-driven pattern of "strengthening traditional businesses + breakthroughs in emerging fields." The Group will accelerate the expansion of heating users, promote the implementation of high-value biomass utilization projects, and aim to become a leading enterprise in China's biomass energy industry during the "15th Five-Year Plan" period, forming a new multi-energy complementary pattern of "green electricity + green steam + green hydrogen + green methanol," while strengthening regional coordination and cost reduction and efficiency improvement, to achieve high-quality development driven by innovation - The Group will adhere to the operating principle of "**seeking progress while maintaining stability, and promoting stability through practical efforts**," focusing on "**clean energy**" as its primary business, and consolidating and deepening the achievements of the first half of the year[78](index=78&type=chunk)[79](index=79&type=chunk) - To address changes in renewable energy electricity price subsidy policies, the Group will build a dual-driven pattern of "**strengthening traditional businesses + breakthroughs in emerging fields**," with "**cogeneration + green empowerment**" as its core direction[82](index=82&type=chunk)[84](index=84&type=chunk) - Actively accelerate the expansion of heating users, promote the implementation of high-value utilization projects such as biomass-to-sugar, biomass-to-carbon, and bio-natural gas, breaking the single profit model[82](index=82&type=chunk)[84](index=84&type=chunk) - During the "**15th Five-Year Plan**" period, the Group will focus on the "**clean energy**" strategy, aiming to become a leading enterprise in China's biomass energy industry, forming a new multi-energy complementary pattern of "**green electricity + green steam + green hydrogen + green methanol**"[85](index=85&type=chunk)[87](index=87&type=chunk) [Financial Review](index=31&type=section&id=Financial%20Review) This chapter provides a detailed review of the Group's financial position, financial resources, indebtedness, foreign exchange risk, asset pledges, commitments, and contingent liabilities as of June 30, 2025. The Group's total assets and net assets both increased, the gearing ratio remained stable, cash flow was ample, and various financial risks were actively managed [Financial Position](index=31&type=section&id=Financial%20Position) As of June 30, 2025, the Group's total assets were approximately HKD 37.74 billion, and net assets were approximately HKD 12.44 billion, representing increases of 4% and 7% respectively compared to the end of 2024. Net asset value per share increased by 6% to HKD 4.91. The gearing ratio remained stable at 67.04%, and the current ratio increased to 129.32%, reflecting a prudent investment strategy and good liquidity June 30, 2025 Financial Position | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change % | | :--- | :--- | :--- | :--- | | Total Assets | 37,739,969 | 36,331,601 | 4% | | Net Assets | 12,437,445 | 11,662,300 | 7% | | Net Asset Value per Share (HKD) | 4.91 | 4.65 | 6% | | Gearing Ratio (%) | 67.04 | 67.90 | -0.86 ppt | | Current Ratio (%) | 129.32 | 125.40 | 3.92 ppt | [Financial Resources](index=31&type=section&id=Financial%20Resources) The Group adopts a prudent approach to cash and financial management, primarily funding operations through the issuance of medium-term notes, internal cash flow, and bank loans. As of June 30, 2025, cash and bank balances were approximately HKD 2.61 billion, a significant increase of approximately HKD 937 million compared to the end of 2024, indicating ample funds - As of June 30, 2025, the Group held cash and bank balances of approximately **HKD 2.61 billion**, an increase of approximately **HKD 937 million** (**56% growth**) compared to the end of 2024[89](index=89&type=chunk)[91](index=91&type=chunk) - Working capital primarily came from proceeds from the issuance of medium-term notes, internal cash flow, and bank loans[89](index=89&type=chunk)[91](index=91&type=chunk) [Indebtedness](index=32&type=section&id=Indebtedness) As of June 30, 2025, the Group's total outstanding loans were approximately HKD 21.914 billion, an increase of approximately HKD 913 million compared to the end of 2024. Loans were primarily denominated in RMB (98%), with fixed-rate and floating-rate loans accounting for 52% and 48% respectively. The Group had ample bank financing facilities, with approximately HKD 7.081 billion remaining undrawn June 30, 2025 Interest-Bearing Bank and Other Borrowings Maturity Profile | Maturity Period | June 30, 2025 (HKD millions) | December 31, 2024 (HKD millions) | | :--- | :--- | :--- | | Within 1 year | 8,901 | 7,718 | | 2nd year | 4,702 | 4,787 | | 3rd to 5th year | 5,782 | 5,571 | | After 5th year | 2,529 | 2,924 | | **Total** | **21,914** | **21,000** | - As of June 30, 2025, the Group's total outstanding loans were approximately **HKD 21.914 billion**, an increase of approximately **HKD 913 million** (**4% growth**) compared to the end of 2024[92](index=92&type=chunk)[93](index=93&type=chunk) - Loans were denominated in RMB and HKD, accounting for **98% and 2%** of the total respectively; fixed-rate and floating-rate loans accounted for **52% and 48%** respectively[92](index=92&type=chunk)[93](index=93&type=chunk) - Total bank loan facilities were **HKD 21.086 billion**, of which approximately **HKD 7.081 billion** remained undrawn[92](index=92&type=chunk)[93](index=93&type=chunk) [Foreign Exchange Risk](index=33&type=section&id=Foreign%20Exchange%20Risk) The company's presentation and functional currency is HKD, but as the Group's main business is in mainland China, over 95% of total investment and revenue are denominated in RMB, creating a natural hedge. The Group closely manages foreign exchange risk by reasonably matching various currency loans and employing appropriate financial instruments - The company's presentation and functional currency are HKD, but China is the Group's main business location, accounting for **over 95%** of total investment and revenue, with most assets, loans, and major transactions denominated in RMB, essentially forming a natural hedge[96](index=96&type=chunk)[97](index=97&type=chunk) - The Group closely manages foreign exchange risk by reasonably matching various currency loans, appropriately controlling non-local currency loans, and employing suitable financial instruments[96](index=96&type=chunk)[97](index=97&type=chunk) [Pledge of Assets](index=34&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, certain bank financing and other loans of the Group were secured by revenue rights under service concession arrangements, contract assets, intangible assets and receivables, bank deposits, property, plant and equipment, and right-of-use assets. The total net book value of pledged assets was approximately HKD 17.888 billion - As of June 30, 2025, the total net book value of pledged assets was approximately **HKD 17.888 billion**, used to secure certain bank financing and other loans of the Group[98](index=98&type=chunk)[103](index=103&type=chunk) [Commitments](index=34&type=section&id=Commitments) As of June 30, 2025, the Group had contractual purchase commitments for construction contracts of approximately HKD 36.885 million, and capital commitments related to capital injections into joint ventures, associates, and financial asset entities of HKD 45.558 million June 30, 2025 Commitments | Type of Commitment | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Contractual purchase commitments for construction contracts | 36,885 | 50,834 | | Capital commitments for capital injections into joint ventures, associates, and financial asset entities | 45,558 | 26,760 | [Contingent Liabilities](index=34&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no contingent liabilities - As of June 30, 2025, the Group had no contingent liabilities[100](index=100&type=chunk)[105](index=105&type=chunk) [Human Resources](index=34&type=section&id=Human%20Resources) As of June 30, 2025, the Group employed over 3,200 staff in Hong Kong and mainland China. Total staff costs for the six months ended June 30, 2025, were approximately HKD 294 million, a decrease from the same period last year. The Group determines remuneration based on qualifications, experience, job nature, and performance, and provides continuous training and other benefits - As of June 30, 2025, the Group employed **over 3,200 staff** in Hong Kong and mainland China[102](index=102&type=chunk)[107](index=107&type=chunk) - Total staff costs for the six months ended June 30, 2025, were approximately **HKD 294 million**, a decrease from **HKD 352 million** in the same period last year[102](index=102&type=chunk)[107](index=107&type=chunk) [Disclosure of Interests](index=35&type=section&id=Disclosure%20of%20Interests) This section details the interests and short positions in shares, underlying shares, and debentures held by the Company's directors, chief executive, and major shareholders as of June 30, 2025 [Interests of Directors and Chief Executive](index=35&type=section&id=Interests%20of%20Directors%20and%20Chief%20Executive) As of June 30, 2025, Mr. Song Jian (through his spouse) held 3,000 shares in the Company and 7,851 shares in Everbright Environment, the Company's listed intermediate holding company. Other than this, no other directors or chief executives had any disclosable interests or short positions in shares, underlying shares, and debentures Directors' Long Positions in the Company's Shares (as of June 30, 2025) | Name of Director | Capacity | Nature of Interest | Number of Shares Held | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | :--- | | SONG Jian (Note (i)) | Spouse's Interest | Family Interest (Note (ii)) | 3,000 | 0.0001% | Directors' Long Positions in Everbright Environment Shares (as of June 30, 2025) | Name of Director | Capacity | Nature of Interest | Number of Shares Held | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | :--- | | SONG Jian (Note (i)) | Spouse's Interest | Family Interest (Note (ii)) | 7,851 | 0.0001% | [Shareholders' Interests](index=37&type=section&id=Shareholders'%20Interests) As of June 30, 2025, major shareholders included China Everbright Green Holdings Co., Ltd., Everbright Environment, China Everbright Group, Central Huijin Investment Ltd., Ningbo Ningdian Investment Development Co., Ltd., Ningbo Energy Group Co., Ltd., and Ningbo Development Investment Group Co., Ltd., all holding long positions in the Company's shares, with China Everbright Group and Central Huijin Investment Ltd. holding over 70% of the shares Major Shareholders' Long Positions in the Company's Shares (as of June 30, 2025) | Name of Major Shareholder | Capacity | Nature of Interest | Long Position in Ordinary Shares and Approximate Percentage | | :--- | :--- | :--- | :--- | | China Everbright Green Holdings Co., Ltd. | Beneficial Owner | - | 1,440,000,000 (69.70%) | | Everbright Environment | Interest of Controlled Corporation | Corporate Interest | 1,440,000,000 (69.70%) | | China Everbright Group Limited | Interest of Controlled Corporation | Corporate Interest | 1,462,912,986 (70.81%) | | Guildford Limited | Interest of Controlled Corporation | Corporate Interest | 1,461,706,369 (70.75%) | | China Everbright Group | Interest of Controlled Corporation | Corporate Interest | 1,462,912,986 (70.81%) | | Central Huijin Investment Ltd. | Interest of Controlled Corporation | Corporate Interest | 1,462,912,986 (70.81%) | | Central Huijin Investment Ltd. | Interest of Controlled Corporation | Corporate Interest | 100,550,000 (4.87%) | | Ningbo Ningdian Investment Development Co., Ltd. | Beneficial Owner | - | 122,127,000 (5.91%) | | Ningbo Energy Group Co., Ltd. | Interest of Controlled Corporation | Corporate Interest | 191,554,000 (9.27%) | | Ningbo Development Investment Group Co., Ltd. | Interest of Controlled Corporation | Corporate Interest | 191,554,000 (9.27%) | [Corporate Governance and Other Information](index=41&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section covers changes in directors' information, compliance with corporate governance codes, interim dividend declarations, share transfer registration, dealings in listed securities, and the review of interim financial results [Changes in Directors' Information](index=41&type=section&id=Changes%20in%20Directors'%20Information) Effective July 25, 2025, Mr. Zhu Fugang was re-designated as Executive Director and Chairman of the Board, and Mr. Liang Haidong was appointed as Executive Director and Chief Executive Officer. Mr. Wang Silian, Mr. Wang Dianer, and Mr. Song Jian resigned from their directorships. Ms. Mao Jing's duties were changed, and she was appointed as a member of the Nomination Committee - Mr. Zhu Fugang was re-designated as Executive Director and Chairman of the Board and appointed as Chairman of the Nomination Committee on **July 25, 2025**[130](index=130&type=chunk) - Mr. Liang Haidong was appointed as Executive Director and Chief Executive Officer and a member of the Sustainability Committee on **July 25, 2025**[130](index=130&type=chunk) - Mr. Wang Silian, Mr. Wang Dianer, and Mr. Song Jian resigned from their directorships on **July 25, 2025**[130](index=130&type=chunk) [Compliance with Corporate Governance Code](index=42&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Company confirms that it has complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules for the six months ended June 30, 2025 - For the six months ended June 30, 2025, the Company has complied with all applicable code provisions set out in Part 2 of the Corporate Governance Code[131](index=131&type=chunk)[134](index=134&type=chunk) [Compliance with Model Code](index=42&type=section&id=Compliance%20with%20Model%20Code) The Company has adopted the Model Code as its code of conduct for directors' securities transactions and confirms that all directors have complied with the required standards set out in the Model Code throughout the review period - After specific inquiries with all directors, the Company confirmed that they have consistently complied with the required standards set out in the Model Code throughout the review period[132](index=132&type=chunk)[135](index=135&type=chunk) [Interim Dividend](index=42&type=section&id=Interim%20Dividend) The Board declared an interim dividend of 2.8 HK cents per share for the six months ended June 30, 2025, a twofold increase from the same period last year. The interim dividend payout ratio is 30.32% and will be paid in cash on or about October 14, 2025 Interim Dividend Distribution | Metric | 1H 2025 | 1H 2024 | Change | | :--- | :--- | :--- | :--- | | Interim Dividend per Share (HK cents) | 2.8 | 1.4 | 100% | | Interim Dividend Payout Ratio (%) | 30.32 | 20.1 | 10.22 ppt | [Closure of Register of Members](index=43&type=section&id=Closure%20of%20Register%20of%20Members) The Company's register of members will be closed from September 19 to September 23, 2025 (both days inclusive). To qualify for the interim dividend, all share transfer documents and relevant share certificates must be lodged with the Company's Hong Kong Share Registrar by 4:30 p.m. on September 18, 2025 - The Company's register of members will be closed from **September 19 to September 23, 2025**[137](index=137&type=chunk)[139](index=139&type=chunk) - To qualify for the interim dividend, all share transfer documents must be lodged by **4:30 p.m. on September 18, 2025**[137](index=137&type=chunk)[139](index=139&type=chunk) [Dealings in Listed Securities](index=43&type=section&id=Dealings%20in%20Listed%20Securities) During the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[138](index=138&type=chunk)[140](index=140&type=chunk) [Review of Interim Financial Results](index=44&type=section&id=Review%20of%20Interim%20Financial%20Results) The unaudited interim financial results of the Group for the six months ended June 30, 2025, have been reviewed by KPMG, the Company's auditor, in accordance with Hong Kong Standard on Review Engagements 2410 issued by the Hong Kong Institute of Certified Public Accountants, and have also been reviewed by the Company's Audit and Risk Management Committee - The Group's unaudited interim financial results for the six months ended June 30, 2025, have been reviewed by **KPMG**[141](index=141&type=chunk)[142](index=142&type=chunk) - The results have also been reviewed by the Company's Audit and Risk Management Committee[141](index=141&type=chunk)[142](index=142&type=chunk) [Interim Financial Report](index=45&type=section&id=Interim%20Financial%20Report) This section presents the Group's unaudited interim financial statements, including the consolidated statement of profit or loss, comprehensive income, financial position, changes in equity, cash flows, and detailed notes on accounting policies and key financial items [Consolidated Statement of Profit or Loss](index=45&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the Group's revenue decreased by 3% year-on-year to HKD 3.40 billion, but gross profit significantly increased due to reduced direct costs and operating expenses. Despite substantial impairment losses on goodwill and property, plant and equipment, profit attributable to equity holders of the company still grew by 33% year-on-year to HKD 191 million 1H 2025 Consolidated Statement of Profit or Loss Summary | Metric | 1H 2025 (HKD thousands) | 1H 2024 (HKD thousands) | | :--- | :--- | :--- | | Revenue | 3,400,122 | 3,505,577 | | Direct costs and operating expenses | (2,543,344) | (2,824,475) | | Gross profit | 856,778 | 681,102 | | Other income | 208,605 | 161,295 | | Impairment loss on goodwill and property, plant and equipment | (178,379) | – | | Administrative expenses | (316,569) | (222,428) | | Finance costs | (294,302) | (410,491) | | Profit before tax | 244,429 | 207,087 | | Profit attributable to equity holders of the company | 190,791 | 143,925 | | Basic earnings per share (HK cents) | 9.23 | 6.97 | [Consolidated Statement of Comprehensive Income](index=46&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's total comprehensive income significantly increased to HKD 453 million, primarily driven by the positive impact of exchange differences arising from the translation of overseas operations (HKD 337 million), despite a negative fair value change in receivables measured at fair value through other comprehensive income 1H 2025 Consolidated Statement of Comprehensive Income Summary | Metric | 1H 2025 (HKD thousands) | 1H 2024 (HKD thousands) | | :--- | :--- | :--- | | Profit for the period | 163,859 | 136,718 | | Exchange differences arising from translation of overseas operations | 336,716 | (159,132) | | Fair value change in receivables measured at fair value through other comprehensive income | (48,046) | 160,775 | | **Total comprehensive income for the period** | **452,529** | **138,361** | | Total comprehensive income attributable to equity holders of the company | 468,284 | 146,567 | [Consolidated Statement of Financial Position](index=47&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets increased to HKD 37.74 billion, primarily driven by an increase in current assets, especially trade and other receivables and contract assets. Goodwill has been fully impaired. Total equity attributable to equity holders of the company increased to HKD 10.143 billion, and the issuance of perpetual medium-term notes further strengthened the equity base June 30, 2025 Consolidated Statement of Financial Position Summary | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Total non-current assets | 23,280,840 | 23,414,866 | | Goodwill | – | 65,681 | | Intangible assets | 11,645,842 | 11,636,066 | | Contract assets (non-current) | 6,135,361 | 6,114,112 | | Total current assets | 14,459,129 | 12,916,735 | | Trade and other receivables, deposits and prepayments (current) | 7,145,987 | 6,984,231 | | Contract assets (current) | 4,346,731 | 3,878,841 | | Cash and cash equivalents | 2,556,964 | 1,635,651 | | Total current liabilities | 11,180,745 | 10,298,028 | | Total non-current liabilities | 14,121,779 | 14,371,273 | | **Net assets** | **12,437,445** | **11,662,300** | | Total equity attributable to equity holders of the company | 10,142,825 | 9,609,839 | | Perpetual medium-term notes | 2,179,788 | 1,900,700 | [Consolidated Statement of Changes in Equity](index=50&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) As of June 30, 2025, the Group's total equity increased to HKD 12.437 billion, a growth of approximately 6.6% compared to January 1, 2025. This increase was primarily driven by profit for the period, exchange differences arising from the translation of overseas operations, and the issuance of perpetual medium-term notes, partially offset by the repayment of perpetual medium-term notes and changes in non-controlling interests 1H 2025 Consolidated Statement of Changes in Equity Summary | Metric | January 1, 2025 (HKD thousands) | June 30, 2025 (HKD thousands) | | :--- | :--- | :--- | | Total equity attributable to equity holders of the company | 9,609,839 | 10,142,825 | | Perpetual medium-term notes | 1,900,700 | 2,179,788 | | Non-controlling interests | 151,761 | 114,832 | | **Total equity** | **11,662,300** | **12,437,445** | | Profit for the period | 190,791 | – | | Exchange differences arising from translation of overseas operations | 325,539 | – | | Fair value change in receivables measured at fair value through other comprehensive income | (48,046) | – | | Issuance of perpetual medium-term notes during the period | – | 1,064,896 | | Repayment of perpetual medium-term notes during the period | – | (806,982) | [Condensed Consolidated Statement of Cash Flows](index=52&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, the Group's net cash flow from operating activities was HKD 806 million, and net cash flow used in investing activities was HKD 260 million. Net cash flow from financing activities significantly improved to HKD 325 million, primarily due to new bank loans and the issuance of medium-term notes, ultimately leading to a net increase in cash and cash equivalents of HKD 871 million 1H 2025 Condensed Consolidated Statement of Cash Flows Summary | Type of Cash Flow | 1H 2025 (HKD thousands) | 1H 2024 (HKD thousands) | | :--- | :--- | :--- | | Net cash flows from operating activities | 805,777 | 1,001,916 | | Net cash flows used in investing activities | (259,692) | (331,000) | | Net cash flows from financing activities | 325,291 | (975,031) | | **Net increase in cash and cash equivalents** | **871,376** | **(304,115)** | | Cash and cash equivalents at end of period | 2,556,964 | 1,984,880 | [Notes to the Unaudited Interim Financial Report](index=55&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Financial%20Report) This section provides detailed notes to the unaudited interim financial report, covering accounting policies, segment information, revenue, finance costs, profit before tax, income tax, dividends, earnings per share, intangible assets and goodwill, trade and other receivables, contract assets, cash and deposits, trade and other payables, share capital, perpetual medium-term notes, commitments, related party transactions, bank financing and pledge of assets, and fair value of financial instruments, offering detailed explanations and analysis of key financial information [General Information and Accounting Policies](index=55&type=section&id=General%20Information%20and%20Accounting%20Policies) The Group's principal activities are construction, operation of biomass integrated utilization projects, hazardous and solid waste treatment projects, environmental remediation projects, and photovoltaic and wind power generation projects. The unaudited interim financial report is prepared in accordance with Hong Kong Accounting Standard 34 and the applicable disclosure requirements of the Listing Rules, and is consistent with the accounting policies adopted in the annual financial statements for the year ended December 31, 2024, except for changes in accounting policies expected to be reflected in the full-year financial statements for 2025 - The Group's principal activities are construction, operation of biomass integrated utilization projects, hazardous and solid waste treatment projects, environmental remediation projects, and photovoltaic and wind power generation projects[168](index=168&type=chunk)[170](index=170&type=chunk) - The interim financial report is prepared in accordance with Hong Kong Accounting Standard 34 and the Listing Rules, with accounting policies consistent with the 2024 annual financial statements, except for changes described in Note 2[169](index=169&type=chunk)[170](index=170&type=chunk)[171](index=171&type=chunk) [Changes in Accounting Policies](index=57&type=section&id=Changes%20in%20Accounting%20Policies) The Group has applied the amendments to Hong Kong Accounting Standard 21 "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability" issued by the Hong Kong Institute of Certified Public Accountants in the interim financial report for this accounting period, but these amendments had no significant impact on this interim report as the Group did not undertake any transactions denominated in a foreign currency that cannot be exchanged into another currency. The Group has not applied any new standards or interpretations that are not yet effective for this accounting period - The Group has applied the amendments to Hong Kong Accounting Standard 21 "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability," but with no significant impact[175](index=175&type=chunk)[178](index=178&type=chunk) - The Group has not applied any new standards or interpretations that are not yet effective for this accounting period[176](index=176&type=chunk)[178](index=178&type=chunk) [Operating Segment Information](index=57&type=section&id=Operating%20Segment%20Information) The Group is divided into four reportable segments based on business scope: biomass integrated utilization, hazardous and solid waste treatment, environmental remediation, and photovoltaic and wind power generation. Segment performance is primarily assessed based on "Adjusted EBITDA (non-GAAP measure)." This section provides revenue, assets, liabilities, and other key financial information for each segment, and indicates that revenue from local Chinese government authorities accounts for a larger proportion - The Group is divided into four reportable segments by business line: biomass integrated utilization, hazardous and solid waste treatment, environmental remediation, and photovoltaic and wind power generation[177](index=177&type=chunk)[179](index=179&type=chunk)[182](index=182&type=chunk) - Segment results are measured by "**Adjusted EBITDA (non-GAAP measure)**"[186](index=186&type=chunk)[188](index=188&type=chunk) 1H 2025 Segment Revenue and Results Summary | Segment | 1H 2025 Revenue (HKD thousands) | 1H 2024 Revenue (HKD thousands) | 1H 2025 Adjusted EBITDA (HKD thousands) | 1H 2024 Adjusted EBITDA (HKD thousands) | | :--- | :--- | :--- | :--- | :--- | | Biomass Integrated Utilization | 2,711,473 | 2,780,873 | 1,021,719 | 888,872 | | Hazardous and Solid Waste Treatment | 515,235 | 564,358 | 26,738 | 109,247 | | Environmental Remediation | 72,680 | 63,026 | (59,052) | 8,201 | | Photovoltaic and Wind Power Generation | 100,734 | 97,320 | 86,761 | 88,401 | | **Total** | **3,400,122** | **3,505,577** | **1,076,166** | **1,094,721** | - For the six months ended June 30, 2025, the Group transacted with two Chinese local government authorities, with each transaction individually accounting for **more than 10%** of the Group's revenue[192](index=192&type=chunk) [Revenue](index=63&type=section&id=Revenue) The Group's total revenue for the first half of 2025 was HKD 3.40 billion,同比減少3%。其中，建造服務收益大幅減少74%，而運營服務收益則微增1%。按地區市場劃分，中國內地仍是主要收益來源，香港和德國亦有少量貢獻 1H 2025 Revenue Analysis | Source of Revenue | 1H 2025 (HKD thousands) | 1H 2024 (HKD thousands) | | :--- | :--- | :--- | | Biomass integrated utilization project construction services | 46,488 | 178,507 | | Biomass integrated utilization project operating services | 2,502,922 | 2,436,265 | | Hazardous and solid waste treatment project operating services | 513,275 | 562,378 | | Environmental remediation project operating services | 72,680 | 63,026 | | Photovoltaic and wind power generation project operating services | 100,734 | 97,320 | | Total revenue from contracts with customers | 3,236,099 | 3,337,496 | | Finance income from service concession arrangements | 164,023 | 168,081 | | **Total Revenue** | **3,400,122** | **3,505,577** | - For the six months ended June 30, 2025, total construction service revenue, operating service revenue, and finance income from Chinese local government authorities amounted to **HKD 2.49 billion**[196](index=196&type=chunk) - By geographical market, mainland China was the primary source of revenue, with Hong Kong and Germany also contributing small amounts of revenue[198](index=198&type=chunk) [Finance Costs](index=66&type=section&id=Finance%20Costs) The Group's total finance costs for the first half of 2025 amounted to HKD 294 million, a year-on-year decrease of 28%. This was primarily due to a significant reduction in interest on bank and other borrowings, despite an increase in interest on medium-term notes and the incurrence of asset-backed securities right maintenance fees 1H 2025 Finance Costs Analysis | Type of Finance Costs | 1H 2025 (HKD thousands) | 1H 2024 (HKD thousands) | | :--- | :--- | :--- | | Interest on bank and other borrowings | 186,021 | 334,442 | | Interest on lease liabilities | 282 | 473 | | Interest on medium-term notes | 88,954 | 78,172 | | Asset-backed securities right maintenance fees | 19,307 | – | | Interest capitalized | (262) | (2,596) | | **Total** | **294,302** | **410,491** | - For the six months ended June 30, 2025, borrowing costs were capitalized at an annual interest rate ranging from **2.13% to 3.50%**[204](index=204&type=chunk) [Profit Before Tax](index=67&type=section&id=Profit%20Before%20Tax) The Group's profit before tax increased by 18% to HKD 244 million in the first half of 2025. Despite recognizing impairment losses on goodwill and property, plant and equipment totaling HKD 178 million, and an increase in employee benefit expenses, an increase in VAT refunds also had a positive impact on profit 1H 2025 Profit Before Tax Composition | Item | 1H 2025 (HKD thousands) | 1H 2024 (HKD thousands) | | :--- | :--- | :--- | | Amortization of intangible assets | 291,759 | 317,678 | | Depreciation of property, plant and equipment | 131,558 | 153,787 | | Interest income | (5,087) | (13,813) | | Government grants | (9,140) | (8,904) | | VAT refunds | (150,010) | (106,251) | | Cost of inventories consumed | 1,186,532 | 1,336,409 | | Credit losses | 13,000 | – | | Impairment loss on goodwill and property, plant and equipment | 178,379 | – | | Employee benefit expenses | 294,243 | 351,890 | - Due to poor operating performance and challenging market conditions, a full impairment loss of **HKD 65.816 million** was recognized for the goodwill of Everbright Ecological Remediation (Jiangsu) Co., Ltd[209](index=209&type=chunk)[210](index=210&type=chunk) - For certain hazardous and solid waste treatment projects that ceased operations, an impairment loss of **HKD 113 million** on property, plant and equipment was recognized[209](index=209&type=chunk)[210](index=210&type=chunk) [Income Tax](index=69&type=section&id=Income%20Tax) The Group's total income tax expense for the first half of 2025 was HKD 80.57 million, an increase from the same period last year. Chinese operations are taxed at a statutory rate of 25%, with some Chinese subsidiaries enjoying tax incentives. Management assessed that the global minimum tax reform (Pillar Two) currently poses no significant tax risk to the Group 1H 2025 Income Tax Analysis | Item | 1H 2025 (HKD thousands) | 1H 2024 (HKD thousands) | | :--- | :--- | :--- | | Current － Other locations | 100,758 | 66,004 | | Under/(over) provision in prior periods | 2,675 | (442) | | Deferred | (22,863) | 4,807 | | **Total tax expense for the period** | **80,570** | **70,369** | - Taxes on Chinese operations are calculated at a statutory rate of **25%** on taxable profits according to Chinese tax laws and regulations, with certain Chinese subsidiaries enjoying tax incentives[214](index=214&type=chunk)[215](index=215&type=chunk) - Based on management's assessment, the global minimum tax reform (Pillar Two) currently poses no significant tax risk to the Group[218](index=218&type=chunk) [Dividends](index=71&type=section&id=Dividends) The Board declared an interim dividend of 2.8 HK cents per ordinary share for the six months ended June 30, 2025, totaling approximately HKD 57.85 million, a twofold increase from 1.4 HK cents per share in the same period last year 1H 2025 Dividend Distribution | Type of Dividend | 1H 2025 (HKD thousands) | 1H 2024 (HKD thousands) | | :--- | :--- | :--- | | Interim dividend (per ordinary share) | 2.8 HK cents | 1.4 HK cents | | **Total** | **57,850** | **28,925** | [Earnings Per Share](index=72&type=section&id=Earnings%20Per%20Share) For the six months ended June 30, 2025, basic earnings per share attributable to equity holders of the company was 9.23 HK cents, a 33% increase from the same period last year. The earnings per share amount is calculated based on profit attributable to equity holders of the company of HKD 191 million and a weighted average number of ordinary shares of 2.066 billion. As there were no potentially dilutive ordinary shares during the period, basic and diluted earnings per share are the same 1H 2025 Earnings Per Share | Metric | 1H 2025 | 1H 2024 | Change % | | :--- | :--- | :--- | :--- | | Basic earnings per share (HK cents) | 9.23 | 6.97 | 33% | - No adjustments were made to the basic earnings per share amounts presented for the six months ended June 30, 2025 and 2024 when calculating diluted earnings per share, as there were no potentially dilutive ordinary shares for those periods[224](index=224&type=chunk)[225](index=225&type=chunk) [Intangible Assets and Goodwill](index=73&type=section&id=Intangible%20Assets%20and%20Goodwill) As of June 30, 2025, the net book value of intangible assets was HKD 11.646 billion, a slight increase from the end of 2024. Goodwill was fully impaired in the first half of 2025, with a net book value of zero, primarily due to poor operating performance and challenging market conditions June 30, 2025 Net Book Value of Intangible Assets and Goodwill | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Total intangible assets | 11,645,842 | 11,636,066 | | Goodwill | – | 65,681 | - In the first half of 2025, a full impairment loss of **HKD 65.816 million** was recognized for the goodwill of Everbright Ecological Remediation (Jiangsu) Co., Ltd., resulting in a zero net book value for goodwill[226](index=226&type=chunk) [Trade and Other Receivables, Deposits and Prepayments](index=74&type=section&id=Trade%20and%20Other%20Receivables,%20Deposits%20and%20Prepayments) As of June 30, 2025, the current portion of trade and other receivables, deposits, and prepayments increased to HKD 7.146 billion. Trade receivables are primarily due within 90 days from the invoice date. The loss allowance for trade receivables increased to HKD 208 million June 30, 2025 Trade and Other Receivables, Deposits and Prepayments Summary | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Trade receivables, net of loss allowance | 6,663,649 | 6,458,757 | | Other receivables, deposits and prepayments | 781,229 | 852,386 | | Amounts due from fellow subsidiaries | 3,357 | 3,838 | | Amounts due from joint ventures | 17,339 | 17,787 | | **Current portion** | **7,145,987** | **6,984,231** | - As of June 30, 2025, the loss allowance for trade receivables was **HKD 208 million**, an increase from the beginning of the year[233](index=233&type=chunk)[234](index=234&type=chunk) [Contract Assets](index=77&type=section&id=Contract%20Assets) As of June 30, 2025, the Group's contract assets (net of impairment) increased to HKD 10.482 billion, primarily comprising service concession arrangement assets, unbilled renewable energy electricity price subsidies, and environmental remediation contract assets. Service concession arrangement assets accrue interest at an annual rate of 4.65% to 6.60%, and unbilled renewable energy electricity price subsidies will be recovered after government administrative procedures are completed June 30, 2025 Contract Assets Summary | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Service concession arrangement assets | 6,525,979 | 6,494,201 | | Unbilled renewable energy electricity price subsidies | 3,530,348 | 3,106,104 | | Environmental remediation contract assets | 442,695 | 402,969 | | Impairment | (16,930) | (10,321) | | **Total (net of impairment)** | **10,482,092** | **9,992,953** | - Service concession arrangement assets accrue interest at an annual rate ranging from **4.65% to 6.60%**[237](index=237&type=chunk)[243](index=243&type=chunk) - Unbilled renewable energy electricity price subsidies will be invoiced and recovered after government administrative procedures are completed in accordance with notices jointly issued by the Ministry of Finance, the National Development and Reform Commission, and the National Energy Administration of the People's Republic of China[244](index=244&type=chunk)[246](index=246&type=chunk) [Cash and Cash Equivalents and Pledged Deposits](index=80&type=section&id=Cash%20and%20Cash%20Equivalents%20and%20Pledged%20Deposits) As of June 30, 2025, the Group's cash and bank balances increased to HKD 2.538 billion. After deducting pledged bank deposits and time deposits with maturities over three months, total cash and cash equivalents amounted to HKD 2.557 billion. Pledged bank deposits are primarily used to secure bank loans and performance guarantees June 30, 2025 Cash and Cash Equivalents and Pledged Deposits Summary | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Cash and bank balances | 2,538,295 | 1,602,969 | | Time deposits and pledged bank deposits | 72,197 | 70,747 | | **Subtotal** | **2,610,492** | **1,673,716** | | Less: Pledged bank deposits | (28,717) | (13,981) | | Less: Time deposits with maturities over three months | (24,811) | (24,084) | | **Cash and cash equivalents** | **2,556,964** | **1,635,651** | - Pledged bank deposits are primarily pledged as collateral for certain bank loans of the Group and for guarantees issued by certain banks to grantors regarding the Group's specific performance obligations under certain service concession agreements[250](index=250&type=chunk) [Trade and Other Payables and Accrued Expenses](index=81&type=section&id=Trade%20and%20Other%20Payables%20and%20Accrued%20Expenses) As of June 30, 2025, the current portion of trade and other payables and accrued expenses decreased to HKD 2.190 billion. Trade payables primarily include amounts due to third parties and fellow subsidiaries, with approximately HKD 378 million being construction payables for BOT and BOO arrangements June 30, 2025 Trade and Other Payables and Accrued Expenses Summary | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Trade payables - Third parties | 1,112,755 | 1,310,870 | | Trade payables - Fellow subsidiaries | 40,840 | 21,841 | | Other payables and accrued expenses | 1,060,140 | 1,187,301 | | Deferred income - Government grants | 187,759 | 167,948 | | **Current portion** | **2,190,254** | **2,497,415** | - As of June 30, 2025, total trade payables of **HKD 378 million** were construction payables for the Group's BOT and certain BOO arrangements[255](index=255&type=chunk)[256](index=256&type=chunk) [Share Capital](index=84&type=section&id=Share%20Capital) As of June 30, 2025, the Company's authorized share capital was 5 billion ordinary shares with a par value of USD 0.10 each, totaling HKD 3.892 billion. The issued and fully paid share capital was 2.066 billion ordinary shares, totaling HKD 1.608 billion, remaining unchanged from the end of 2024 June 30, 2025 Share Capital | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Authorized share capital (5 billion shares, USD 0.10 par value each) | 3,891,500 | 3,891,500 | | Issued and fully paid share capital (2.066 billion shares) | 1,608,029 | 1,608,029 | [Perpetual Medium-Term Notes](index=85&type=section&id=Perpetual%20Medium-Term%20Notes) As of June 30, 2025, the total perpetual medium-term notes increased to HKD 2.180 billion. During the period, the Company issued perpetual medium-term notes with a principal amount of RMB 1 billion (approximately HKD 1.068 billion) and repaid HKD 807 million. These notes have no maturity date, are redeemable at the Company's option, and distributions can be deferred at discretion June 30, 2025 Perpetual Medium-Term Notes Movement | Item | January 1, 2025 (HKD thousands) | June 30, 2025 (HKD thousands) | | :--- | :--- | :--- | | Total perpetual medium-term notes | 1,900,700 | 2,179,788 | | Issuance of perpetual medium-term notes during the period | – | 1,064,896 | | Repayment of perpetual medium-term notes during the period | – | (806,982) | - For the period ended June 30, 2025, the Company issued perpetual medium-term notes with a principal amount of **RMB 1 billion** (equivalent to approximately **HKD 1.068 billion**), with a distribution rate of **2.39% per annum** (for the first 3 years)[264](index=264&type=chunk) - Perpetual medium-term notes have no maturity date, are redeemable solely at the Company's option, and distributions can be deferred at discretion[264](index=264&type=chunk) [Commitments](index=86&type=section&id=Commitments) As of June 30, 2025, the Group had contractual purcha

[Company Information and Disclaimer](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF%E8%88%87%E5%85%8D%E8%B2%AC%E8%81%B2%E6%98%8E) [Financial Highlights](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) The Group's unaudited interim results for the six months ended June 30, 2025, show significant revenue growth, but a substantial increase in net loss and a decline in gross profit margin due to rising costs and expenses Financial Highlights for the Six Months Ended June 30, 2025 | Metric | 2025 (RMB'000) | 2024 (RMB'000) | Change (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 7,154 | 3,532 | 3,622 | 102.5% | | Gross Profit | 2,863 | 1,760 | 1,103 | 62.7% | | Net Loss Attributable to Owners of the Parent | (29,551) | (5,058) | (24,493) | 484.2% | | Gross Profit Margin | 40.0% | 49.8% | (9.8) percentage points | (19.7%) | [Interim Condensed Consolidated Financial Statements](index=2&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Interim Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) The Group experienced significant revenue growth, but increased cost of sales, finance costs, and share of loss from joint ventures led to a substantial expansion of loss before tax and loss for the period Key Data from Interim Condensed Consolidated Statement of Profit or Loss | Metric | 2025 (RMB'000) | 2024 (RMB'000) | Change (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 7,154 | 3,532 | 3,622 | 102.5% | | Cost of Sales | (4,291) | (1,772) | (2,519) | 142.1% | | Gross Profit | 2,863 | 1,760 | 1,103 | 62.7% | | Other Income | 13,816 | 22,461 | (8,645) | (38.5%) | | Administrative Expenses | (11,410) | (12,282) | 872 | (7.1%) | | Finance Costs | (28,897) | (15,187) | (13,710) | 90.3% | | Share of Loss of Joint Ventures | (5,117) | (714) | (4,403) | 616.7% | | Loss Before Tax | (27,899) | (4,016) | (23,883) | 594.7% | | Loss for the Period | (29,374) | (4,066) | (25,308) | 622.4% | | Loss Attributable to Owners of the Parent | (29,551) | (5,058) | (24,493) | 484.2% | | Basic and Diluted Loss Per Share | RMB (0.50) cents | RMB (0.09) cents | RMB (0.41) cents | 455.6% | [Interim Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) The Group's total comprehensive loss for the period increased to approximately **RMB 20.0 million** in 2025 from **RMB 15.9 million** in 2024, primarily due to an expanded loss for the period, despite a favorable shift in exchange differences Key Data from Interim Condensed Consolidated Statement of Comprehensive Income | Metric | 2025 (RMB'000) | 2024 (RMB'000) | Change (RMB'000) | | :--- | :--- | :--- | :--- | | Loss for the Period | (29,374) | (4,066) | (25,308) | | Exchange Differences on Translation of Overseas Operations | 9,336 | (11,846) | 21,182 | | Total Comprehensive Loss for the Period | (20,038) | (15,912) | (4,126) | | Total Comprehensive Loss Attributable to Owners of the Parent | (20,215) | (16,904) | (3,311) | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the Group's total non-current assets slightly increased, current assets grew, but net current liabilities expanded, resulting in a decrease in net assets Key Data from Interim Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | Change (RMB'000) | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 1,373,049 | 1,369,145 | 3,904 | | Total Current Assets | 718,095 | 682,436 | 35,659 | | Total Current Liabilities | 1,508,731 | 1,460,662 | 48,069 | | Net Current Liabilities | (790,636) | (778,226) | (12,410) | | Net Assets | 129,250 | 141,564 | (12,314) | | Total Equity | 129,250 | 141,564 | (12,314) | [Notes to the Interim Condensed Consolidated Financial Information](index=6&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) [Basis of Presentation and Going Concern](index=6&type=section&id=1.%20%E5%91%88%E5%88%97%E5%9F%BA%E6%BA%96) The Group's condensed consolidated financial statements, prepared under HKAS 34, face significant going concern uncertainties due to substantial net current liabilities and insufficient cash, though management has secured shareholder financial support - The Group recorded a net loss of approximately **RMB 27,988,000** for the six months ended June 30, 2025[10](index=10&type=chunk) - As of June 30, 2025, the Group's current liabilities exceeded its current assets by approximately **RMB 790,636,000**[10](index=10&type=chunk) - The Group's total interest-bearing bank and other borrowings amounted to approximately **RMB 591,308,000**, of which approximately **RMB 361,783,000** is due for repayment within the next twelve months, while unrestricted cash and cash equivalents were only approximately **RMB 2,452,000**[10](index=10&type=chunk) - Greenland Digital and Greenland Financial have agreed to provide sufficient financial support to the Group for a period of not less than 12 months from the approval date of the Company's audited consolidated financial statements for the period ended June 30, 2025, including debt-to-equity settlement, asset and business injection, etc[10](index=10&type=chunk) - Shareholders and related parties have committed not to demand repayment of borrowings and other payables owed by the Group as of June 30, 2025, until the Group is able to fulfill all other obligations[13](index=13&type=chunk) [Changes in Accounting Policies and Disclosures](index=7&type=section&id=2.%20%E6%9B%B4%E6%94%B9%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E5%8F%8A%E6%8A%AB%E9%9C%B2) The Group first applied HKFRS accounting standard amendments during the interim period, which had no significant impact on its financial position, performance, or disclosures for current or prior periods - The Group has first applied the amendments to HKAS 21 "Lack of Exchangeability"[14](index=14&type=chunk) - The application of the amendments to HKFRS accounting standards had no significant impact on the Group's financial position and performance[14](index=14&type=chunk) [Revenue and Other Income](index=8&type=section&id=3.%20%E6%94%B6%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) The Group's revenue from customer contracts more than doubled year-on-year, driven by new hydropower O&M services and growth in design and maintenance, while other income decreased due to reduced interest from contract revenue Revenue Analysis | Category | 2025 (RMB'000) | 2024 (RMB'000) | Change (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue from Contracts with Customers | 7,154 | 3,532 | 3,622 | 102.5% | | Construction Contracts | — | 860 | (860) | (100.0%) | | Design and Maintenance Services | 1,588 | 162 | 1,426 | 879.0% | | Operation and Maintenance Services for Hydropower Stations | 3,433 | — | 3,433 | N/A | | Rental Income | 2,133 | 2,510 | (377) | (15.0%) | | Total Other Income | 13,816 | 22,461 | (8,645) | (38.5%) | | Other Interest Income from Contract Revenue | 11,377 | 20,891 | (9,514) | (45.5%) | | Bargain Purchase Gain | 2,228 | — | 2,228 | N/A | [Finance Costs](index=9&type=section&id=4.%20%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) The Group's finance costs increased by **90.3%** during the reporting period, primarily due to a substantial rise in interest expenses on bank loans, overdrafts, and other borrowings Finance Costs Analysis | Category | 2025 (RMB'000) | 2024 (RMB'000) | Change (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Interest on Bank Loans, Overdrafts and Other Borrowings | 21,790 | 7,982 | 13,808 | 173.0% | | Interest on Lease Liabilities | 809 | 689 | 120 | 17.4% | | Interest on Corporate Bonds | 6,298 | 6,516 | (218) | (3.3%) | | Total Interest Expense | 28,897 | 15,187 | 13,710 | 90.3% | [Loss Before Tax](index=10&type=section&id=5.%20%E9%99%A4%E7%A8%85%E5%89%8D%E虧%E6%90%8D) The Group's loss before tax significantly expanded due to increased costs for services, employee benefits, depreciation, and contract asset impairment, alongside reduced interest income from revenue contracts Major Components of Loss Before Tax | Item | 2025 (RMB'000) | 2024 (RMB'000) | Change (RMB'000) | | :--- | :--- | :--- | :--- | | Cost of Services Provided | 4,291 | 947 | 3,344 | | Employee Benefit Expenses | 4,648 | 2,915 | 1,733 | | Depreciation of Property, Plant and Equipment | 3,125 | 2,711 | 414 | | Interest Income from Contract Revenue | (11,377) | (20,891) | 9,514 | | Trade Receivables (Reversal)/Impairment | (7,452) | 3,689 | (11,141) | | Contract Assets Impairment/(Reversal) | 5,220 | (4,356) | 9,576 | [Income Tax](index=10&type=section&id=6.%20%E6%89%80%E5%BE%97%E7%A8%85) The Group's income tax expense significantly increased during the reporting period, primarily driven by higher current tax expenses in mainland China Income Tax Expense Analysis | Category | 2025 (RMB'000) | 2024 (RMB'000) | Change (RMB'000) | | :--- | :--- | :--- | :--- | | Current - China (Expense for the Period) | 1,649 | 50 | 1,599 | | Deferred | (171) | — | (171) | | Total Tax Expense for the Period | 1,475 | 50 | 1,425 | - No provision for Hong Kong profits tax was made as the Group did not generate or earn any assessable profits in Hong Kong during the reporting period[20](index=20&type=chunk) [Dividends](index=11&type=section&id=7.%20%E8%82%A1%E6%81%AF) The Board does not recommend any interim dividend for the reporting period, consistent with the prior year - The Board does not recommend the payment of any interim dividend for the reporting period (six months ended June 30, 2024: nil)[22](index=22&type=chunk) [Loss Per Share Attributable to Owners of the Parent](index=11&type=section&id=8.%20%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%99%AE%E9%80%9A%E8%82%A1%E6%AC%8A%E7%9B%8A%E6%8C%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%B5%E6%AF%8F%E8%82%A1%E虧%E6%90%8D) The Group's basic and diluted loss per share attributable to owners of the parent significantly expanded, primarily due to a substantial increase in the loss for the period Loss Per Share Analysis | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Loss Attributable to Owners of the Parent (RMB'000) | (29,551) | (5,058) | (24,493) | | Weighted Average Number of Ordinary Shares in Issue for the Period (shares) | 5,939,364,760 | 5,821,809,957 | 117,554,803 | | Basic Loss Per Share (RMB cents) | (0.50) | (0.09) | (0.41) | | Diluted Loss Per Share (RMB cents) | (0.50) | (0.09) | (0.41) | [Trade Receivables](index=12&type=section&id=9.%20%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, the Group's total trade receivables increased, with significant growth in current receivables, though a high proportion remains overdue for over two years Aging Analysis of Trade Receivables | Aging | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | Change (RMB'000) | | :--- | :--- | :--- | :--- | | Current | 21,627 | 14,294 | 7,333 | | Overdue within One Year | 23,267 | 23,267 | 0 | | Overdue between One and Two Years | 3,362 | 3,363 | (1) | | Overdue between Two and Three Years | 5,882 | 5,880 | 2 | | Overdue over Three Years | 2,992 | 2,993 | (1) | | Total | 57,130 | 49,797 | 7,333 | - The Group's trade receivables primarily consist of amounts due from government agencies, with the remainder from real estate companies[27](index=27&type=chunk) [Contract Assets](index=13&type=section&id=10.%20%E5%90%88%E7%B4%84%E8%B3%87%E7%94%A2) As of June 30, 2025, the Group's contract assets balance remained stable, primarily from construction services, despite an increase in impairment provisions Contract Assets Analysis | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | Change (RMB'000) | | :--- | :--- | :--- | :--- | | Contract Assets from Construction Services | 1,117,036 | 1,108,665 | 8,371 | | Impairment | (420,171) | (414,951) | (5,220) | | Total | 696,865 | 693,714 | 3,151 | - Contract assets are initially recognized for revenue from construction services because consideration is only receivable upon successful completion of construction[28](index=28&type=chunk) - Retention money receivable is included in contract assets for construction services, with maturity dates generally between one and three years after the completion of the relevant construction work[28](index=28&type=chunk) [Trade Payables and Bills Payable](index=13&type=section&id=11.%20%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85%E5%8F%8A%E6%87%89%E4%BB%98%E7%A5%A8%E6%93%9A) As of June 30, 2025, the Group's total trade payables and bills payable slightly decreased, with the majority of amounts still overdue for over two years Aging Analysis of Trade Payables and Bills Payable | Aging | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | Change (RMB'000) | | :--- | :--- | :--- | :--- | | Within One Year | 2,485 | 3,486 | (1,001) | | Over One Year but Less Than Two Years | 603 | 3,976 | (3,373) | | Over Two Years | 547,705 | 566,621 | (18,916) | | Total | 550,793 | 574,083 | (23,290) | - Trade payables are non-interest bearing and generally settled in part within a six-month period based on completion progress[29](index=29&type=chunk) [Acquisition of a Subsidiary](index=14&type=section&id=12.%20%E6%94%B6%E8%B3%BC%E4%B8%80%E9%96%93%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8) The Company completed the acquisition of a **51%** equity interest in ZDX Energy Development Co., Ltd on March 26, 2025, with consideration paid by issuing new shares, resulting in a bargain purchase gain and vendor guarantees for performance and cash flow - The Company completed the acquisition of a **51%** equity interest in ZDX Energy Development Co., Ltd ("ZDX") on March 26, 2025[30](index=30&type=chunk) - The acquisition consideration was satisfied by issuing **219,354,839** new shares of the Company, with a fair value of **RMB 2,871,000**[30](index=30&type=chunk)[32](index=32&type=chunk) - The vendor provided a profit guarantee that the target group's aggregate net profit for the three years ending December 31, 2027, shall not be less than **RMB 11.0 million**[33](index=33&type=chunk) - The vendor further guaranteed that if the target group records a net cash outflow in any financial year during the performance guarantee period, it shall compensate in cash[34](index=34&type=chunk) - The acquisition of ZDX resulted in a bargain purchase gain of **RMB 2,228,000**[40](index=40&type=chunk) [Consideration Transferred](index=14&type=section&id=%E5%B7%B2%E8%BD%89%E8%AE%93%E4%BB%A3%E5%83%B9) The consideration transferred for the ZDX acquisition primarily comprised issued shares, accounting for the fair value of contingent consideration Consideration Transferred Components | Item | Amount (RMB'000) | | :--- | :--- | | Shares Issued | 2,871 | | Fair Value of Contingent Consideration | (47) | | Total | 2,824 | [Performance Guarantee](index=14&type=section&id=%E6%A5%AD%E7%B8%BE%E4%BF%9D%E8%AD%89) The vendor committed to the target group achieving a minimum aggregate net profit during the performance guarantee period, with a compensation mechanism for any shortfall - The vendor guaranteed that the target group's aggregate net profit for the three years ending December 31, 2027, shall not be less than **RMB 11.0 million**[33](index=33&type=chunk) - If the profit guarantee is not met, the vendor shall compensate the shortfall by transferring additional shares of the target company or in cash[33](index=33&type=chunk) [Cash Flow Guarantee](index=15&type=section&id=%E7%8F%BE%E9%87%91%E6%B5%81%E4%BF%9D%E8%AD%89) The vendor committed to providing cash compensation if the target group experiences net cash outflow during any financial year within the performance guarantee period - The vendor guaranteed that if the target group records a net cash outflow in any financial year during the performance guarantee period, it shall compensate in cash[34](index=34&type=chunk) [Company's Right of First Refusal](index=15&type=section&id=%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%9A%84%E5%84%AA%E5%85%88%E8%B3%BC%E8%B2%B7%E6%AC%8A) Upon expiry of the performance guarantee period, the Company holds a right of first refusal over the vendor's remaining shares in the target company - Upon the expiry of the performance guarantee period, the Company has a right of first refusal over the remaining **49.0%** shares of the target company that the vendor intends to transfer[35](index=35&type=chunk) [ZDX Business Overview and Acquisition Impact](index=15&type=section&id=ZDX%E4%B8%BB%E8%A6%81%E5%BE%9E%E4%BA%8B%E5%90%91%E4%BD%8D%E6%96%BC%E4%B8%AD%E8%8F%AF%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9C%8B%E7%9A%84%E6%B0%B4%E5%8A%9B%E7%99%BC%E9%9B%BB%E7%AB%99%E6%8F%90%E4%BE%9B%E7%87%9F%E9%81%8B%E5%8F%8A%E7%B6%AD%E8%AD%B7%E6%9C%8D%E5%8B%99%E3%80%82) ZDX primarily engages in the operation and maintenance of hydropower stations, and this acquisition brought cash, trade receivables, and prepayments to the Group, generating a bargain purchase gain - ZDX primarily engages in providing operation and maintenance services to hydropower stations located in the People's Republic of China[36](index=36&type=chunk) Impact of ZDX Acquisition on Assets and Liabilities | Item | Amount (RMB'000) | | :--- | :--- | | Cash and Cash Equivalents | 57 | | Trade Receivables | 5,751 | | Prepayments, Other Receivables and Other Assets | 4,115 | | Other Payables and Accrued Charges | (18) | | Total Identifiable Net Assets Acquired | 9,905 | | Non-controlling Interests (49%) | 4,853 | | Bargain Purchase Gain | 2,228 | [Comparative Information](index=16&type=section&id=13.%20%E6%AF%94%E8%BC%83%E8%B3%87%E6%96%99) Certain comparative figures have been reclassified to conform to the current year's presentation - Certain comparative figures have been reclassified to conform to the current year's presentation[41](index=41&type=chunk) [Industry Review](index=17&type=section&id=%E8%A1%8C%E6%A5%AD%E5%9B%9E%E9%A1%A7) China's urban landscape and greening industry is increasingly vital, driven by urbanization and ecological initiatives, accelerating digital transformation with smart garden systems; concurrently, the new energy sector is booming, forming a diversified energy supply system for green and low-carbon urban transformation - Urban landscape and greening are increasingly important in improving living environments, enhancing urban ecology, and promoting sustainable development, accelerating digital transformation with smart garden systems as a key management upgrade tool[42](index=42&type=chunk) - The new energy industry is experiencing vigorous development, with frequent green energy policies, accelerating technological iteration, and broad market prospects[43](index=43&type=chunk) - In the first half of 2025, new photovoltaic installed capacity reached a new high, distributed photovoltaics developed rapidly, energy storage systems were well-matched, charging pile layouts were optimized, and green energy application scenarios continued to expand[43](index=43&type=chunk) [Business Review](index=18&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group advanced project development, expanded new energy businesses, and strengthened compliance, but several PPP projects were suspended due to approval or negotiation issues, impacting revenue and gross profit margin, and expanding net loss, while also focusing on cost control and R&D [Project Progress and Financial Performance](index=18&type=section&id=%E6%9C%AC%E9%9B%86%E5%9C%98%E6%8C%81%E7%BA%8C%E9%97%9C%E6%B3%A8%E9%A0%85%E7%9B%AE%E9%80%B2%E5%B1%95%E6%83%85%E6%B3%81) The Group actively advanced project development and new energy businesses, but several PPP projects were suspended due to land use, compliance, settlement, or licensing issues, leading to increased revenue but expanded net loss and a declining gross profit margin - The Group actively expanded into new energy business areas, including photovoltaic projects[44](index=44&type=chunk) - As of June 30, 2025, the Guang'an Lingang Economic Development Zone Guanshenghu Ecological Wetland PPP Project, Kaifeng Xiangfu District Boda Luzhe Huiji River Wetland Park PPP Project, Mianzhu Municipal Tourism Construction PPP Project, and Quanzhou Botanical Garden PPP Project were all in a suspended state of construction[44](index=44&type=chunk)[45](index=45&type=chunk) Key Financial Performance During the Reporting Period | Metric | Amount/Ratio | | :--- | :--- | | Total Revenue | RMB 7.1 million | | Net Loss Attributable to Owners of the Parent | RMB 29.6 million | | Gross Profit Margin | 40.0% (down 9.8 percentage points year-on-year) | [PPP Project Suspension Reasons and Status](index=18&type=section&id=%E4%B8%8A%E8%BF%B0%E9%A0%85%E7%9B%AE%E7%9A%84%E6%9A%AB%E5%81%9C%E5%8E%9F%E5%9B%A0%E8%A9%B3%E6%83%85%E5%A6%82%E4%B8%8B) Multiple PPP projects were suspended due to missing land use approvals, incomplete compliance, ongoing settlement price negotiations, and unobtained logging permits or unresolved villager compensation - The Guang'an Lingang Economic Development Zone Guanshenghu Ecological Wetland PPP Project, involving construction on protected forest land, requires internal land use conversion approval from the local government, which is still being obtained[44](index=44&type=chunk) - The Mianzhu Municipal Tourism Construction PPP Project, involving multiple townships and committee offices, requires all relevant compliance approvals before the remaining construction work can be completed[45](index=45&type=chunk) - The Kaifeng Xiangfu District Huiji River Wetland Park PPP Project is in negotiations with the local government regarding the settlement price for completed works[45](index=45&type=chunk) - The Quanzhou Botanical Garden Project, involving large-scale forest felling and rural cemetery demolition, has not yet obtained the required logging permits, and the local government has not reached a settlement plan with villagers[45](index=45&type=chunk) [Cost Control](index=20&type=section&id=%E6%88%90%E6%9C%AC%E6%8E%A7%E5%88%B6) The Group implemented a refined project cost control model, establishing a unified supplier database, utilizing an OA system for strict budget management, and achieving cost reduction and efficiency through procurement platforms and operational team collaboration - The Group adopted a refined project cost control model, rather than the traditional extensive contracting system[47](index=47&type=chunk) - A unified supplier database for the entire Group was established, utilizing a self-developed project management information platform (OA system) to ensure all expenditures strictly adhere to budgeted management[47](index=47&type=chunk) - Support from well-known domestic enterprise procurement platforms was secured, fully opening up supply chain channels to achieve cost reduction and efficiency improvement[47](index=47&type=chunk) [Research and Development](index=20&type=section&id=%E7%A0%94%E7%A9%B6%E9%96%8B%E7%99%BC) The Group is committed to applying efficient, energy-saving, and clean green technologies, driving ecological projects through innovation, investing in a technology center, and strengthening industry-academia-research collaboration and intellectual property - The Group adheres to a design philosophy guided by efficient, energy-saving, and clean green technologies, aiming for internationally advanced and domestically leading standards[48](index=48&type=chunk) - Increased investment in establishing a technology center, focusing on independent development supplemented by introduction, digestion, and absorption, continuously strengthening industry-academia-research collaboration and intellectual property development[48](index=48&type=chunk) - Collaboration with high-quality technology enterprises in upstream and downstream industries to achieve shared technological resources and empower projects together[49](index=49&type=chunk) [Outlook](index=21&type=section&id=%E5%B1%95%E6%9C%9B) China's new energy installed capacity continues rapid growth, with non-fossil energy generation exceeding **60%** for the first time, while global electricity demand accelerates; the Group will leverage integrated solar storage and charging trends, integrate resources, enhance competitiveness, and commit to green and low-carbon transformation - China's new energy installed capacity continued its rapid growth in the first half of 2025, with non-fossil energy generation capacity exceeding **60%** for the first time by the end of May[50](index=50&type=chunk) - Global electricity demand is accelerating, with global electricity consumption increasing by nearly **1100 TWh** in 2024, a year-on-year growth of **4.3%**[50](index=50&type=chunk) - Renewable energy has become the primary source for meeting new electricity demand growth, accounting for **80%** of the global electricity generation increase in 2024[50](index=50&type=chunk) - Integrated photovoltaic storage and charging is gradually becoming a crucial development direction in the renewable energy sector, with extremely broad market prospects[51](index=51&type=chunk) - The Group will actively seize development trends in the new energy sector, integrate internal and external resources, explore cutting-edge technologies and innovative models, enhance competitiveness, and commit to promoting green and low-carbon transformation[52](index=52&type=chunk) [Bank and Other Borrowings](index=22&type=section&id=%E9%8A%80%E8%A1%8C%E5%8F%8A%E5%85%B6%E4%BB%96%E5%80%9F%E6%AC%BE) As of June 30, 2025, the Group's total outstanding bank and other borrowings increased Total Bank and Other Borrowings | Date | Amount (RMB'000) | | :--- | :--- | | June 30, 2025 | 591,308 | | December 31, 2024 | 576,527 | | Change | 14,781 | [Company Information](index=22&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) [Company Registration and Listing Information](index=22&type=section&id=%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%96%BC2013%E5%B9%B410%E6%9C%8822%E6%97%A5%E5%9C%A8%E9%96%8B%E6%9B%BC%E7%BE%A4%E5%B3%B6%E8%A8%BB%E5%86%8A%E6%88%90%E7%AB%8B) The Company was incorporated in the Cayman Islands in 2013 and listed on the Main Board of the Hong Kong Stock Exchange in 2014 - The Company was incorporated in the Cayman Islands as an exempted company on October 22, 2013[54](index=54&type=chunk) - The Company's shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on July 21, 2014[54](index=54&type=chunk) [Share Trading Activities](index=22&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%82%A1%E4%BB%BD) During the reporting period, neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities, and as of June 30, 2025, the Company held no treasury shares - During the entire reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities on the Stock Exchange[55](index=55&type=chunk) - As of June 30, 2025, the Company held no treasury shares[55](index=55&type=chunk) [Corporate Governance Summary](index=22&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E6%91%98%E8%A6%81) [Compliance with Corporate Governance Code](index=22&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E6%91%98%E8%A6%81) The Company is committed to high corporate governance standards, having adopted HKEX Corporate Governance Code principles and provisions, and complied with all applicable code provisions and Listing Rules' continuing obligations during the reporting period - The Company has adopted the principles and code provisions of the Corporate Governance Code set out in Appendix C1 to the Rules Governing the Listing of Securities on the Stock Exchange as the basis for its corporate governance practices[56](index=56&type=chunk) - During the entire reporting period, the Company complied with all applicable code provisions of the Corporate Governance Code and the continuing obligations of a listed issuer under the Listing Rules[56](index=56&type=chunk) [Chairman and Chief Executive Officer Roles](index=23&type=section&id=%E6%96%BC2025%E5%B9%B48%E6%9C%885%E6%97%A5%EF%BC%8C%E6%9E%97%E5%85%89%E9%9D%92%E5%85%88%E7%94%9F) Mr. Lin Guangqing was appointed Chairman of the Board on August 5, 2025, also serving as CEO, an arrangement deemed appropriate by the Board to ensure operational stability and enhance decision-making efficiency, subject to periodic review - Mr. Lin Guangqing was appointed Chairman of the Board on August 5, 2025, and concurrently holds both the positions of Chairman of the Board and Chief Executive Officer of the Company[57](index=57&type=chunk) - The Board believes that Mr. Lin concurrently holding both positions is an appropriate arrangement at this stage, helping to ensure operational stability, consistency in leadership and policy formulation, and enhancing decision-making efficiency and flexibility[57](index=57&type=chunk) - The Board will review the structure from time to time and consider appropriate actions when circumstances warrant[57](index=57&type=chunk) [Standard Code for Securities Transactions](index=23&type=section&id=%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The Company adopted the Standard Code in Appendix C3 of the Listing Rules for securities transactions by directors and employees with inside information, confirming all directors complied during the reporting period - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules as the code of conduct for directors' dealings in the Company's securities[58](index=58&type=chunk) - Following specific enquiries with all directors, all directors confirmed their compliance with the Standard Code throughout the reporting period[58](index=58&type=chunk) [Audit Committee and Dividends](index=24&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83%E5%8F%8A%E5%AF%A9%E9%96%B1%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Audit Committee Review](index=24&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83%E5%8F%8A%E5%AF%A9%E9%96%B1%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) The Company's Audit Committee reviewed the Group's accounting principles, policies, interim report, and unaudited consolidated interim results, deeming them compliant with applicable accounting standards and requirements - The Audit Committee comprises three members: Mr. Yang Yuanguang (Chairman), Mr. Dai Guoqiang, and Ms. Zhang Rui[59](index=59&type=chunk) - The Audit Committee has reviewed the accounting principles and policies adopted by the Group, the interim report, and the unaudited consolidated interim results, and is of the opinion that they were prepared in compliance with applicable accounting standards and requirements[59](index=59&type=chunk) [Interim Dividends](index=24&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board does not recommend any interim dividend for the reporting period, consistent with the prior year - The Board does not recommend the payment of any interim dividend for the reporting period (six months ended June 30, 2024: nil)[60](index=60&type=chunk) [Events After Reporting Period](index=24&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) [Acquisition of Subsidiary](index=24&type=section&id=%E6%96%BC2025%E5%B9%B48%E6%9C%8815%E6%97%A5%EF%BC%8C%E6%9C%AC%E5%85%AC%E5%8F%B8%E9%96%93%E6%8E%A5%E5%85%A8%E8%B3%87%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8) Subsequent to the reporting period, Hangzhou Beifeng Landscape Design Co., Ltd, an indirect wholly-owned subsidiary, agreed to acquire **100%** equity in Shanghai Greenland Senmao Greening Engineering Co., Ltd, which will become a wholly-owned subsidiary - On August 15, 2025, Hangzhou Beifeng Landscape Design Co., Ltd, an indirect wholly-owned subsidiary of the Company, entered into an equity transfer agreement with Greenland Group Senmao Landscape Co., Ltd to acquire **100%** equity interest in Shanghai Greenland Senmao Greening Engineering Co., Ltd[61](index=61&type=chunk) - Upon completion, Shanghai Greenland Senmao Greening Engineering Co., Ltd will become a wholly-owned subsidiary of the Company, and its financial results will be consolidated into the Group's accounts[61](index=61&type=chunk) [Proposed Share Consolidation and Change of Company Name](index=24&type=section&id=%E6%96%BC%202025%20%E5%B9%B48%20%E6%9C%88%2029%20%E6%97%A5%20%EF%BC%8C%E8%91%A3%20%E4%BA%8B%20%E6%9C%83%E5%BB%BA%20%E8%AD%B0) The Board proposed a share consolidation (ten into one), a change in board lot size, and a change of the Company's Chinese and English names to 'China Green Broad Ecological Technology Company Limited', all subject to shareholder approval - The Board proposed a share consolidation on the basis of consolidating every ten (10) issued and unissued existing shares of HK$0.025 par value each into one (1) consolidated share of HK$0.25 par value each[62](index=62&type=chunk) - It is proposed to change the Company's Chinese name to "中國綠博生態科技集團有限公司" and its English name to "China Green Broad Ecological Technology Company Limited"[62](index=62&type=chunk) - The above matters are subject to shareholder approval at a general meeting[63](index=63&type=chunk) [Publication of Interim Results and Board Information](index=25&type=section&id=%E5%88%8A%E7%99%BC%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%8F%8A2025%E5%B9%B4%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) [Publication of Interim Results](index=25&type=section&id=%E5%88%8A%E7%99%BC%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%8F%8A2025%E5%B9%B4%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) This announcement is published on the Company's and HKEX websites, and the 2025 interim report will be published and dispatched to shareholders in due course - This announcement is published on the Company's website (http://www.greenland-broadgreenstate.com.cn) and the HKEX website (http://www.hkexnews.hk)[64](index=64&type=chunk) - The Company's 2025 interim report will be published on the Company's and HKEX websites and dispatched to shareholders in due course in accordance with the Listing Rules[64](index=64&type=chunk) [Board Members Information](index=25&type=section&id=%E6%89%BF%E8%91%A3%E4%BA%8B%E6%9C%83%E5%91%BD) As of the announcement date, the Board comprises two executive directors (Mr. Lin Guangqing, Mr. Wang Yaoming) and three independent non-executive directors (Mr. Dai Guoqiang, Mr. Yang Yuanguang, Ms. Zhang Rui) - The executive directors are Mr. Lin Guangqing and Mr. Wang Yaoming[65](index=65&type=chunk) - The independent non-executive directors are Mr. Dai Guoqiang, Mr. Yang Yuanguang, and Ms. Zhang Rui[65](index=65&type=chunk)

[Corporate Information](index=3&type=section&id=Corporate%20Information) [Board of Directors and Committee Composition](index=3&type=section&id=Board%20of%20Directors%20and%20Committees) The company's board and committees saw changes, with Mr. Wong Shun Choi resigning and Ms. Xu Wenguan appointed as an independent non-executive director and committee chair - Independent Non-Executive Director Mr. Wong Shun Choi resigned on **June 19, 2025**[6](index=6&type=chunk)[9](index=9&type=chunk) - Ms. Xu Wenguan was appointed as an independent non-executive director on **June 19, 2025**, also serving as Chairman of the Nomination Committee and a member of the Audit and Remuneration Committees[6](index=6&type=chunk)[7](index=7&type=chunk)[8](index=8&type=chunk)[9](index=9&type=chunk)[10](index=10&type=chunk) [Company Contact and Operational Details](index=3&type=section&id=Company%20Contact%20and%20Operational%20Details) The company disclosed its company secretary, authorized representatives, registered office, principal place of business in Hong Kong, operational headquarters, share registrar, auditor, principal bankers, website, and investor relations contact - Mr. Cheung Chun Hei is the Company Secretary, and Mr. Cheung Chi Kai and Mr. Cheung Chun Hei are the Authorized Representatives[9](index=9&type=chunk)[10](index=10&type=chunk) - The auditor is PricewaterhouseCoopers, and principal bankers include Bank of China (Hong Kong), Wenzhou Bank, China Construction Bank, and MUFG Bank (Hong Kong Branch)[11](index=11&type=chunk)[12](index=12&type=chunk) [Financial Highlights](index=5&type=section&id=Financial%20Highlights) [Key Financial Performance Indicators](index=5&type=section&id=Key%20Financial%20Performance%20Indicators) For the six months ended June 30, 2025, revenue increased by 17% to RMB 198.3 million, operating profit grew by 24% to RMB 70.5 million, and profit attributable to shareholders rose by 15% to RMB 64.7 million, with basic earnings per share at RMB 0.033 2025 First Half Key Financial Data | Indicator | 2025 First Half (RMB million) | 2024 First Half (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 198.3 | 168.8 | +17% | | Other Income | 27.1 | 24.9 | +9% | | Operating Profit | 70.5 | 56.7 | +24% | | Profit Attributable to Shareholders | 64.7 | 56.1 | +15% | | Operating Profit Margin (%) | 35.6 | 33.6 | +2.0 ppt | | Net Profit Margin (%) | 32.6 | 33.2 | -0.6 ppt | | Basic Earnings Per Share (RMB) | 0.033 | 0.028 | +18% | [Key Financial Position Indicators](index=5&type=section&id=Key%20Financial%20Position%20Indicators) As of June 30, 2025, cash and cash equivalents were RMB 376.6 million, equity attributable to shareholders increased by 3% to RMB 784.2 million, the current ratio improved to 4.4 times, and the net debt-to-equity ratio remained in a net cash position 2025 June 30 Key Financial Position Data | Indicator | 2025 June 30 (RMB million) | 2024 December 31 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 376.6 | 476.2 | -21% | | Equity Attributable to Shareholders | 784.2 | 758.5 | +3% | | Current Ratio (times) | 4.4 | 3.4 | +29% | | Net Debt-to-Equity Ratio (%) | Net Cash | Net Cash | N/A | [Management Discussion and Analysis](index=6&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=6&type=section&id=Business%20Review) In the first half of 2025, the global economy faced uncertainty, while China's economy showed resilience with a 5.3% GDP growth, driven by "trade-in" policies and a growing but competitive e-commerce market, prompting the Group to adjust strategies to consolidate "Daphne" and cultivate "Daphne.Lab" for diversified and steady growth - In the first half of 2025, China's GDP grew by **5.3%** year-on-year, with total retail sales of consumer goods increasing by **5.0%**[18](index=18&type=chunk)[19](index=19&type=chunk)[21](index=21&type=chunk) - Consumers shifted towards rational consumption, prioritizing value-for-money, quality, and experience, with increased confidence in domestic brands[19](index=19&type=chunk)[21](index=21&type=chunk) - E-commerce market online retail sales grew by **8.5%** to **RMB 7.43 trillion**, but competition intensified, making content-driven platforms mainstream[20](index=20&type=chunk)[22](index=22&type=chunk) - The Group adopted a dual-focus strategy, consolidating the leading position of the "Daphne" brand while actively cultivating the "Daphne.Lab" brand[23](index=23&type=chunk)[26](index=26&type=chunk) [The Group's Performance](index=7&type=section&id=The%20Group%27s%20Performance) Despite market challenges, the Group achieved steady growth in revenue and operating profit in the first half of 2025 through robust forward-looking strategies and lean supply chain management, with increased basic earnings per share, but the Board does not recommend an interim dividend 2025 First Half Group Performance | Indicator | 2025 First Half (RMB million) | 2024 First Half (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 198.3 | 168.8 | +17% | | Operating Profit | 70.5 | 56.7 | +24% | | Basic Earnings Per Share (RMB) | 0.033 | 0.028 | +18% | - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[29](index=29&type=chunk)[31](index=31&type=chunk) [Brand Licensing and Distribution Business](index=8&type=section&id=Brand%20Licensing%20and%20Distribution%20Business) The "Daphne" brand successfully enhanced its influence and sales through a comprehensive refresh, appointing Song Qian as global ambassador, launching the "Free Rebirth" fashion campaign and "Cloud Soft" series, and expanding into children's shoes and bags, while actively deploying across multiple e-commerce platforms and prudently expanding its offline franchise network, leading to significant growth in licensing fee income and wholesale goods sales - The "Daphne" brand appointed renowned Chinese artist Song Qian as its global brand ambassador and launched the "Free Rebirth" fashion campaign, enhancing brand vitality and resonance with younger consumers[33](index=33&type=chunk)[34](index=34&type=chunk) - The original "Cloud Soft" series achieved significant sales with the endorsement of the ambassador, and the brand continued to expand product categories such as children's shoes and bags[33](index=33&type=chunk)[34](index=34&type=chunk) - The Group consolidated its influence on mainstream e-commerce platforms like "Tmall" and "JD.com" and achieved growth in emerging channels such as "Douyin" and "Pinduoduo," leveraging short videos and influencer collaborations to boost brand exposure[35](index=35&type=chunk)[37](index=37&type=chunk) Brand Licensing and Distribution Business Revenue | Revenue Category | 2025 First Half (RMB million) | 2024 First Half (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Licensing Fee Income | 85.2 | 68.6 | +24% | | Wholesale Sales under Licensing Arrangements | 102.7 | 91.5 | +12% | - As of June 30, 2025, the Group operated **116** physical stores (December 31, 2024: 111 stores) and **1,150** online stores (December 31, 2024: 790 stores), all operated by franchisees[39](index=39&type=chunk)[42](index=42&type=chunk) [Retail Business](index=11&type=section&id=Retail%20Business) The "Daphne.Lab" brand, with its bold and avant-garde aesthetic, high quality, and originality, gained favor among new-generation consumers and Korean and Chinese artists, driving continuous growth in e-commerce sales, while deepening brand cultural penetration through collaborations with trend artists, K-pop dance community events, and celebrity influencer partnerships, operating 2 directly-managed offline and 6 online stores, and enhancing market competitiveness by optimizing the supply chain - The "Daphne.Lab" brand, with its bold and avant-garde aesthetic, high quality, and originality, gained favor among new-generation consumers and Korean and Chinese artists, significantly enhancing its global influence[40](index=40&type=chunk)[43](index=43&type=chunk) - The brand collaborated with trend artists to launch the "Slightly Flower Lollipop Generation 2" co-branded slippers and organized K-pop dance community events to deepen the brand's K-pop cultural DNA penetration among Gen Z[41](index=41&type=chunk)[44](index=44&type=chunk) - The Group operates **2** directly-managed offline and **6** online "Daphne.Lab" stores, with the Chengdu pop-up store demonstrating ideal single-store operating efficiency[45](index=45&type=chunk)[47](index=47&type=chunk) - The Group continuously optimizes supply chain processes to enhance overall efficiency and ensure strict quality control, responding swiftly to market demands[46](index=46&type=chunk)[47](index=47&type=chunk) [Financial Review](index=13&type=section&id=Financial%20Review) The Group's total revenue for the first half of 2025 increased by 17% to RMB 198.3 million, driven by growth in licensing fee income, wholesale goods sales, and retail business, with gross profit margin on goods sales improving to 18.5% and operating profit increasing by 24%, while income tax expense significantly rose, leading to a 15% increase in profit attributable to shareholders [Revenue and Gross Profit](index=13&type=section&id=Revenue%20and%20Gross%20Profit) The Group's total revenue for the first half of 2025 increased by 17% year-on-year to RMB 198.3 million, with licensing fee income growing by 24%, wholesale goods sales by 12%, and retail business revenue by 20%, while the gross profit margin on goods sales improved from 17.2% to 18.5%, primarily due to better cost and inventory control 2025 First Half Revenue and Gross Profit | Revenue Category | 2025 First Half (RMB million) | 2024 First Half (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Licensing Fee Income | 85.2 | 68.6 | +24% | | Goods Sales – Wholesale | 102.7 | 91.5 | +12% | | Goods Sales – Retail | 10.4 | 8.7 | +20% | | Total Goods Sales | 113.1 | 100.2 | +13% | | Cost of Sales | (92.2) | (83.0) | +11% | | Gross Profit from Goods Sales | 20.9 | 17.2 | +22% | | Gross Profit Margin from Goods Sales | 18.5% | 17.2% | +1.3 ppt | | Total Revenue | 198.3 | 168.8 | +17% | | Total Gross Profit | 106.1 | 85.8 | +24% | - The increase in licensing fee income was primarily attributable to the overall increase in the quantity of footwear products and other product categories licensed to online franchisees[51](index=51&type=chunk)[56](index=56&type=chunk) - The gross profit margin on goods sales improved to **18.5%**, mainly due to better cost and inventory control[54](index=54&type=chunk)[57](index=57&type=chunk) [Other Income](index=14&type=section&id=Other%20Income) Other income for the first half of 2025 was approximately RMB 27.1 million, a 9% year-on-year increase, primarily comprising rental income from investment properties, which grew due to the recovery of long-overdue rents from certain tenants 2025 First Half Other Income | Income Category | 2025 First Half (RMB million) | 2024 First Half (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Other Income | 27.1 | 24.9 | +9% | | Total Rental Income | 20.9 | 19.3 | +8.3% | - The increase in total rental income was mainly due to the recovery of long-overdue rents from certain tenants[55](index=55&type=chunk)[58](index=58&type=chunk) [Operating Expenses](index=15&type=section&id=Operating%20Expenses) Operating expenses for the first half of 2025 were approximately RMB 62.7 million, an increase from RMB 54.0 million in the prior period, primarily due to higher marketing and promotion expenses and employee benefit expenses 2025 First Half Operating Expenses | Indicator | 2025 First Half (RMB million) | 2024 First Half (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Expenses | 62.7 | 54.0 | +16.1% | - The overall increase in operating expenses was primarily due to higher marketing and promotion expenses and employee benefit expenses[59](index=59&type=chunk)[64](index=64&type=chunk) [Operating Profit](index=15&type=section&id=Operating%20Profit) Operating profit for the first half of 2025 was approximately RMB 70.5 million, a 24% increase from RMB 56.7 million in the corresponding period of 2024 2025 First Half Operating Profit | Indicator | 2025 First Half (RMB million) | 2024 First Half (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Profit | 70.5 | 56.7 | +24% | [Finance Costs](index=15&type=section&id=Finance%20Costs) Finance costs for the first half of 2025 were approximately RMB 0.1 million, primarily interest on lease liabilities, representing a decrease from the prior period 2025 First Half Finance Costs | Indicator | 2025 First Half (RMB million) | 2024 First Half (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Interest on Lease Liabilities | 0.1 | 0.2 | -50% | [Income Tax Expense](index=15&type=section&id=Income%20Tax%20Expense) Income tax expense for the first half of 2025 was approximately RMB 5.8 million, a significant increase from RMB 0.7 million in the prior period, mainly due to the net effect of utilizing deferred tax assets and reversing deferred tax liabilities related to unremitted earnings from the previous year 2025 First Half Income Tax Expense | Indicator | 2025 First Half (RMB million) | 2024 First Half (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Income Tax Expense | 5.8 | 0.7 | +728.6% | - The increase in income tax expense was primarily due to the net effect of tax expenses arising from the utilization of deferred tax assets related to tax losses and the reversal of over-provision for deferred tax liabilities related to Chinese withholding tax on unremitted earnings from the previous year[62](index=62&type=chunk)[67](index=67&type=chunk) [Profit Attributable to Shareholders of the Company](index=15&type=section&id=Profit%20Attributable%20to%20Shareholders%20of%20the%20Company) Profit attributable to shareholders of the Company for the first half of 2025 was approximately RMB 64.7 million, a 15% year-on-year increase, with basic earnings per share at RMB 0.033 2025 First Half Profit Attributable to Shareholders | Indicator | 2025 First Half (RMB million) | 2024 First Half (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Profit Attributable to Shareholders | 64.7 | 56.1 | +15% | | Basic Earnings Per Share (RMB) | 0.033 | 0.028 | +18% | [Liquidity, Financial Resources and Capital Structure](index=16&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) As of June 30, 2025, the Group's cash and cash equivalents were approximately RMB 376.6 million, a 21% decrease from the end of 2024, primarily due to deposits into time deposits and dividends paid, while the net debt-to-equity ratio remained in a net cash position, the current ratio improved to 4.4 times, and management is confident in the sufficiency of future working capital 2025 First Half Cash and Cash Equivalents Movement | Indicator | 2025 First Half (RMB million) | 2024 First Half (RMB million) | | :--- | :--- | :--- | | Net Cash Inflow from Operating Activities | 38.5 | 45.9 | | Capital Expenditure | (0.2) | (0.4) | | Deposits into Time Deposits with Original Maturity over Three Months | (102.6) | – | | Dividends Paid to Shareholders of the Company | (35.8) | (14.9) | | Net (Decrease)/Increase in Cash and Cash Equivalents | (96.9) | 43.3 | - As of June 30, 2025, the Group's cash and cash equivalents were approximately **RMB 376.6 million**, a **21% decrease** from December 31, 2024[14](index=14&type=chunk)[69](index=69&type=chunk) - The Group maintained a net cash position for its net debt-to-equity ratio, and its current ratio further improved to **4.4 times** (December 31, 2024: 3.4 times)[14](index=14&type=chunk)[76](index=76&type=chunk)[80](index=80&type=chunk) - The Group held approximately **RMB 103.0 million** in time deposits with original maturity over three months and approximately **RMB 30.8 million** in certificates of deposit for treasury management to maximize the utilization of surplus cash[70](index=70&type=chunk)[72](index=72&type=chunk)[73](index=73&type=chunk)[75](index=75&type=chunk)[79](index=79&type=chunk) [Foreign Exchange Risk Management](index=17&type=section&id=Foreign%20Exchange%20Risk%20Management) The Group primarily faces foreign exchange risks related to HKD and USD, managed through regular review of net foreign exchange exposure, but no forward foreign exchange contracts were entered into for hedging in the first half of 2025, and exchange rate fluctuations may impact financial results - The Group primarily faces foreign exchange risks related to **HKD** and **USD**[77](index=77&type=chunk)[81](index=81&type=chunk) - The Group manages foreign exchange risk by regularly reviewing its net foreign exchange exposure, but no forward foreign exchange contracts were entered into for hedging during the six months ended June 30, 2025[78](index=78&type=chunk)[81](index=81&type=chunk) [Significant Investments and Capital Assets](index=18&type=section&id=Significant%20Investments%20and%20Capital%20Assets) As of June 30, 2025, the Group had no significant investments, future plans for significant investments or capital assets, or pledged or charged assets, with capital expenditure of approximately RMB 0.2 million during the period primarily for leasehold improvements and office equipment, and no significant capital commitments - As of June 30, 2025, the Group had no significant investments or future plans for significant investments and capital assets[82](index=82&type=chunk)[83](index=83&type=chunk)[89](index=89&type=chunk) - As of June 30, 2025, the Group had no pledged or charged assets[84](index=84&type=chunk)[90](index=90&type=chunk) - During the review period, capital expenditure was approximately **RMB 0.2 million**, primarily for leasehold improvements and office equipment, with no significant capital commitments[85](index=85&type=chunk)[91](index=91&type=chunk) [Contingent Liabilities](index=18&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, and December 31, 2024, the Group had no significant contingent liabilities[86](index=86&type=chunk)[92](index=92&type=chunk) [Human Resources](index=18&type=section&id=Human%20Resources) As of June 30, 2025, the Group's total number of employees was 113, with employee benefit expenses increasing by 11% year-on-year to RMB 25.6 million, mainly due to an increase in headcount, discretionary performance bonuses, and staff benefits and allowances, as the Group values talent and provides competitive remuneration, share options, bonuses, and various benefits and training - As of June 30, 2025, the Group's total number of employees was **113** (December 31, 2024: 109 employees)[87](index=87&type=chunk)[93](index=93&type=chunk) - Employee benefit expenses were approximately **RMB 25.6 million** (2024: RMB 23.1 million), an **11% increase** year-on-year, primarily due to an increase in headcount, discretionary performance bonuses, and staff benefits and allowances[87](index=87&type=chunk)[93](index=93&type=chunk) - The Group offers remuneration packages based on market conditions and individual capabilities, grants share options and discretionary performance bonuses to eligible employees, and provides retirement plans, medical insurance, staff purchase discounts, and training courses[88](index=88&type=chunk)[93](index=93&type=chunk) [Outlook](index=19&type=section&id=Outlook) Looking ahead to the second half of 2025, the global economic outlook remains complex, while China's economy maintains solid long-term fundamentals, with the retail industry transitioning towards value-driven consumption, prompting the Group to steadfastly execute its strategy, optimizing product development, category expansion, licensing and distribution, marketing, and supply chain management, and advancing its omnichannel strategy, with plans to launch new products at Paris and Shanghai Fashion Weeks, expand "Daphne" children's shoes and bags, and broaden "Daphne.Lab" presence in non-traditional retail shopping centers for sustainable growth - The Group remains optimistic about the long-term fundamentals of the Chinese retail market and will continue to adopt a diversified business model, integrating brand licensing, direct retail, and wholesale businesses[94](index=94&type=chunk)[95](index=95&type=chunk)[97](index=97&type=chunk) - The "Daphne" brand plans to launch new "Cloud Soft" series models in collaboration with designer brands during Paris Fashion Week in October, with global ambassadors leading Double Eleven live stream promotions[96](index=96&type=chunk)[98](index=98&type=chunk) - The "Daphne.Lab" brand plans to hold a fashion show and launch a designer brand collaboration series during Shanghai Fashion Week in October to strengthen its avant-garde fashion image[96](index=96&type=chunk)[98](index=98&type=chunk) - The Group will advance its omnichannel strategy, strengthening its online platform presence, and plans to expand "Daphne.Lab" retail points in non-traditional retail shopping centers in first-tier and new first-tier cities in the second half of the year[99](index=99&type=chunk)[101](index=101&type=chunk) [Condensed Consolidated Income Statement](index=21&type=section&id=Condensed%20Consolidated%20Income%20Statement) [Income Statement Summary](index=21&type=section&id=Income%20Statement%20Summary) For the six months ended June 30, 2025, the Group recorded revenue of RMB 198,297 thousand, gross profit of RMB 106,113 thousand, operating profit of RMB 70,518 thousand, profit for the period of RMB 64,599 thousand, of which profit attributable to shareholders of the Company was RMB 64,685 thousand Condensed Consolidated Income Statement (For the six months ended June 30, 2025) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 198,297 | 168,796 | | Cost of Sales | (92,184) | (83,027) | | Gross Profit | 106,113 | 85,769 | | Other Income | 27,114 | 24,948 | | Other (Losses)/Gains – Net | (638) | 703 | | Selling and Distribution Expenses | (29,431) | (20,587) | | General and Administrative Expenses | (33,815) | (34,563) | | Reversal of Impairment Loss on Financial Assets | 1,175 | 462 | | Operating Profit | 70,518 | 56,732 | | Finance Costs | (112) | (193) | | Share of Profit of an Associate | 31 | 53 | | Profit Before Income Tax | 70,437 | 56,592 | | Income Tax Expense | (5,838) | (732) | | Profit for the Period | 64,599 | 55,860 | | Profit Attributable to Shareholders of the Company | 64,685 | 56,055 | | Non-controlling Interests | (86) | (195) | | Basic Earnings Per Share (RMB) | 0.033 | 0.028 | | Diluted Earnings Per Share (RMB) | 0.032 | 0.028 | [Condensed Consolidated Statement of Comprehensive Income](index=22&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) [Comprehensive Income Statement Summary](index=22&type=section&id=Comprehensive%20Income%20Statement%20Summary) For the six months ended June 30, 2025, the Group's profit for the period was RMB 64,599 thousand, with other comprehensive loss of RMB 2,686 thousand due to exchange differences on translation of overseas operations, resulting in a total comprehensive income of RMB 61,913 thousand for the period Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30, 2025) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit for the Period | 64,599 | 55,860 | | Other Comprehensive (Loss)/Income | | | | Exchange Differences on Translation of Overseas Operations | (2,686) | 525 | | Total Comprehensive Income for the Period | 61,913 | 56,385 | | Attributable to Shareholders of the Company | 61,999 | 56,580 | | Non-controlling Interests | (86) | (195) | [Condensed Consolidated Balance Sheet](index=23&type=section&id=Condensed%20Consolidated%20Balance%20Sheet) [Balance Sheet Summary](index=23&type=section&id=Balance%20Sheet%20Summary) As of June 30, 2025, the Group's total assets were RMB 919,649 thousand, comprising non-current assets of RMB 384,098 thousand and current assets of RMB 535,551 thousand, with total liabilities of RMB 131,848 thousand, net assets of RMB 787,801 thousand, and equity attributable to shareholders of RMB 784,193 thousand Condensed Consolidated Balance Sheet (As of June 30, 2025) | Indicator | 2025 June 30 (RMB thousand) | 2024 December 31 (RMB thousand) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Investment Properties | 357,444 | 365,832 | | Property, Plant and Equipment | 3,779 | 4,209 | | Right-of-use Assets | 6,194 | 6,539 | | Interests in an Associate | 1,222 | 1,192 | | Deferred Income Tax Assets | 15,459 | 15,115 | | **Current Assets** | | | | Inventories | 4,798 | 4,388 | | Trade Receivables | 5,844 | 7,235 | | Deposits, Prepayments and Other Receivables | 14,447 | 20,015 | | Other Financial Assets | 133,819 | 30,477 | | Cash and Cash Equivalents | 376,643 | 476,170 | | **Current Liabilities** | | | | Trade Payables | 35,443 | 36,891 | | Accrued Charges and Other Payables | 42,350 | 38,212 | | Contract Liabilities | 14,652 | 54,081 | | Lease Liabilities | 3,990 | 3,126 | | Current Income Tax Liabilities | 23,935 | 24,624 | | **Non-current Liabilities** | | | | Lease Liabilities | 2,721 | 3,854 | | Deferred Income Tax Liabilities | 8,757 | 8,141 | | **Net Assets** | 787,801 | 762,243 | | **Equity Attributable to Shareholders** | 784,193 | 758,549 | | **Non-controlling Interests** | 3,608 | 3,694 | | **Total Equity** | 787,801 | 762,243 | [Condensed Consolidated Statement of Changes in Equity](index=24&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) [Equity Changes Summary](index=24&type=section&id=Equity%20Changes%20Summary) For the six months ended June 30, 2025, equity attributable to shareholders of the Company increased from RMB 758,549 thousand at the beginning of the period to RMB 784,193 thousand, primarily driven by profit for the period of RMB 64,685 thousand, partially offset by dividends paid of RMB 36,355 thousand and a decrease in exchange reserve Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30, 2025) | Indicator | Share Capital (RMB thousand) | Reserves (RMB thousand) | Non-controlling Interests (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | As of January 1, 2025 | 175,202 | 583,347 | 3,694 | 762,243 | | Profit/(Loss) for the Period | – | 64,685 | (86) | 64,599 | | Other Comprehensive Loss | – | (2,686) | – | (2,686) | | Total Comprehensive Income/(Loss) | – | 61,999 | (86) | 61,913 | | Dividends Declared or Paid | – | (36,355) | – | (36,355) | | As of June 30, 2025 | 175,202 | 608,991 | 3,608 | 787,801 | [Condensed Consolidated Statement of Cash Flows](index=25&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) [Cash Flow Statement Summary](index=25&type=section&id=Cash%20Flow%20Statement%20Summary) For the six months ended June 30, 2025, the Group's net cash inflow from operating activities was RMB 38,535 thousand, net cash outflow from investing activities was RMB 98,093 thousand, mainly due to deposits into time deposits with original maturity over three months, and net cash outflow from financing activities was RMB 37,376 thousand, primarily for dividends paid, resulting in cash and cash equivalents of RMB 376,643 thousand at period-end, a decrease of RMB 96,934 thousand from the beginning of the period Condensed Consolidated Statement of Cash Flows (For the six months ended June 30, 2025) | Activity Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Cash Inflow from Operating Activities | 38,535 | 45,918 | | Net Cash (Outflow)/Inflow from Investing Activities | (98,093) | 15,427 | | Net Cash Outflow from Financing Activities | (37,376) | (18,055) | | Net (Decrease)/Increase in Cash and Cash Equivalents | (96,934) | 43,290 | | Cash and Cash Equivalents as of January 1 | 476,170 | 366,273 | | Effect of Exchange Rate Changes | (2,593) | 637 | | Cash and Cash Equivalents as of June 30 | 376,643 | 410,200 | - Net cash outflow from investing activities was primarily due to deposits into time deposits with original maturity over three months of approximately **RMB 102,629 thousand**[115](index=115&type=chunk) - Net cash outflow from financing activities was primarily due to dividends paid to shareholders of the Company of approximately **RMB 35,791 thousand**[115](index=115&type=chunk) [Notes to the Condensed Consolidated Interim Financial Statements](index=26&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) [1 General Information](index=26&type=section&id=1%20General%20Information) Daphne International Holdings Limited and its subsidiaries are primarily engaged in the licensing, distribution, and sale of footwear products and accessories in Mainland China; the Company is incorporated in the Cayman Islands and listed on the Hong Kong Stock Exchange; these financial statements are presented in RMB and have been reviewed by the Audit Committee and approved for issue by the Board of Directors - The Group is primarily engaged in the licensing, distribution, and sale of footwear products and accessories in Mainland China[116](index=116&type=chunk)[122](index=122&type=chunk) - The condensed consolidated interim financial statements are unaudited, have been reviewed by the Audit Committee, and were approved for issue by the Board of Directors on **August 20, 2025**[118](index=118&type=chunk)[122](index=122&type=chunk) [2 Basis of Preparation](index=26&type=section&id=2%20Basis%20of%20Preparation) These condensed consolidated interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting," applying accounting policies consistent with the 2024 annual financial statements, and the first-time application of amendments to HKAS 21 and HKFRS 1 had no significant impact on operations or financial position - These financial statements are prepared in compliance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants[119](index=119&type=chunk)[123](index=123&type=chunk) - The Group first applied amendments to HKAS 21 and HKFRS 1 for the reporting period commencing **January 1, 2025**, which had no significant impact on its operations or financial position[120](index=120&type=chunk)[121](index=121&type=chunk)[123](index=123&type=chunk) [3 Revenue and Segment Information](index=27&type=section&id=3%20Revenue%20and%20Segment%20Information) The Group is primarily engaged in the licensing, distribution, and sale of footwear products and accessories in Mainland China, with executive directors identified as the chief operating decision-makers, and based on the assessment of overall revenue and profit/loss, the Group has only one reportable segment, with revenue primarily derived from licensing fee income and goods sales - The Group is primarily engaged in the licensing, distribution, and sale of footwear products and accessories in Mainland China and has only one reportable segment[124](index=124&type=chunk)[125](index=125&type=chunk)[127](index=127&type=chunk) 2025 First Half Revenue Composition | Revenue Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Licensing Fee Income | 85,153 | 68,575 | | Goods Sales | 113,144 | 100,221 | | **Total** | **198,297** | **168,796** | [4 Other Income](index=28&type=section&id=4%20Other%20Income) Total other income for the first half of 2025 was RMB 27,114 thousand, primarily comprising total rental income of RMB 20,941 thousand and interest income of RMB 5,487 thousand 2025 First Half Other Income Details | Income Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Rental Income | 20,941 | 19,281 | | Interest Income | 5,487 | 4,703 | | Government Grants | 9 | 553 | | Others | 677 | 411 | | **Total** | **27,114** | **24,948** | [5 Other (Losses)/Gains – Net](index=28&type=section&id=5%20Other%20%28Losses%29%2FGains%20%E2%80%93%20Net) Other (losses)/gains – net for the first half of 2025 was RMB (638) thousand, primarily including fair value gains on financial assets at fair value through profit or loss of RMB 230 thousand and net exchange losses of RMB (874) thousand 2025 First Half Other (Losses)/Gains – Net Details | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Fair Value Gains on Financial Assets at Fair Value Through Profit or Loss | 230 | 158 | | Gain on Disposal of Property, Plant and Equipment | 6 | – | | Net Exchange (Losses)/Gains | (874) | 545 | | **Total** | **(638)** | **703** | [6 Operating Profit](index=29&type=section&id=6%20Operating%20Profit) Operating profit for the first half of 2025 was stated after deducting various expenses, including cost of inventories sold of RMB 92,184 thousand, employee benefit expenses of RMB 25,613 thousand, and marketing and promotion expenses of RMB 11,117 thousand 2025 First Half Operating Profit Deductions | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Auditor's Remuneration | 1,003 | 1,083 | | Cost of Inventories Sold | 92,184 | 83,027 | | Depreciation of Investment Properties | 8,388 | 8,405 | | Depreciation of Property, Plant and Equipment | 675 | 520 | | Depreciation of Right-of-use Assets | 1,551 | 2,149 | | Employee Benefit Expenses | 25,613 | 23,129 | | Marketing and Promotion Expenses | 11,117 | 5,241 | [7 Finance Costs](index=29&type=section&id=7%20Finance%20Costs) Finance costs for the first half of 2025 amounted to RMB 112 thousand, entirely comprising interest on lease liabilities 2025 First Half Finance Costs Details | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest on Lease Liabilities | 112 | 193 | [8 Income Tax Expense](index=30&type=section&id=8%20Income%20Tax%20Expense) Income tax expense for the first half of 2025 was RMB 5,838 thousand, comprising current income tax of RMB 660 thousand and deferred income tax of RMB 5,178 thousand, recognized based on management's estimate of the weighted average annual effective income tax rate for the entire financial year 2025 First Half Income Tax Expense Details | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current Income Tax – Mainland China | 660 | 732 | | Deferred Income Tax | 5,178 | – | | **Total** | **5,838** | **732** | [9 Earnings Per Share](index=30&type=section&id=9%20Earnings%20Per%20Share) Basic earnings per share for the first half of 2025 was RMB 0.033, and diluted earnings per share was RMB 0.032, with the dilutive effect primarily stemming from the exercise of 49,621,345 share options 2025 First Half Earnings Per Share Calculation | Indicator | 2025 (Number of Shares) | 2024 (Number of Shares) | | :--- | :--- | :--- | | Weighted Average Number of Ordinary Shares in Issue | 1,978,598,429 | 1,978,598,429 | | Effect of Share Options Exercised | 49,621,345 | – | | Weighted Average Number of Shares Adjusted for Dilutive Effect | 2,028,219,774 | 1,978,598,429 | - For the six months ended June 30, 2025, **11,250,000** share options had no dilutive effect as their exercise price was higher than the average market price and were not included in the diluted earnings per share calculation[145](index=145&type=chunk)[148](index=148&type=chunk) [10 Dividends](index=31&type=section&id=10%20Dividends) For the first half of 2025, a final dividend of HKD 0.02 per share for the year ended December 31, 2024, totaling RMB 36,355 thousand, was declared or paid, and the Board does not recommend an interim dividend for the six months ended June 30, 2025 2025 First Half Dividend Payment | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Final Dividend Declared or Paid | 36,355 | 17,934 | - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[150](index=150&type=chunk) [11 Investment Properties](index=31&type=section&id=11%20Investment%20Properties) As of June 30, 2025, the net book value of investment properties was RMB 357,444 thousand, with depreciation of RMB 8,388 thousand during the period Investment Properties Net Book Value | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Book Value as of January 1 | 365,832 | 394,464 | | Depreciation | (8,388) | (8,405) | | Net Book Value as of June 30 | 357,444 | 386,059 | [12 Property, Plant and Equipment](index=32&type=section&id=12%20Property%2C%20Plant%20and%20Equipment) As of June 30, 2025, the net book value of property, plant and equipment was RMB 3,779 thousand, with additions of RMB 245 thousand and depreciation of RMB 675 thousand during the period Property, Plant and Equipment Net Book Value Movement | Item | Leasehold Improvements (RMB thousand) | Furniture, Fixtures and Equipment (RMB thousand) | Motor Vehicles (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Net Book Value as of January 1, 2025 | 2,664 | 977 | 568 | 4,209 | | Additions | 160 | 85 | – | 245 | | Depreciation | (500) | (94) | (81) | (675) | | Net Book Value as of June 30, 2025 | 2,324 | 968 | 487 | 3,779 | [13 Trade Receivables](index=33&type=section&id=13%20Trade%20Receivables) As of June 30, 2025, net trade receivables amounted to RMB 5,844 thousand, after deducting a loss allowance of RMB 8,283 thousand, with the aging analysis indicating an increase in receivables over 60 days Trade Receivables Net Amount and Aging Analysis | Item | 2025 June 30 (RMB thousand) | 2024 December 31 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables | 14,127 | 16,636 | | Less: Loss Allowance | (8,283) | (9,401) | | **Trade Receivables – Net** | **5,844** | **7,235** | | **Aging Analysis by Invoice Date** | | | | 0 to 30 Days | 2,794 | 5,433 | | 31 to 60 Days | 957 | 1,251 | | Over 60 Days | 2,093 | 551 | - The Group generally grants its trade customers a credit period of **30 to 60 days**[159](index=159&type=chunk) [14 Deposits, Prepayments and Other Receivables](index=34&type=section&id=14%20Deposits%2C%20Prepayments%20and%20Other%20Receivables) As of June 30, 2025, total deposits, prepayments, and other receivables amounted to RMB 14,447 thousand, primarily including recoverable value-added tax of RMB 9,518 thousand Deposits, Prepayments and Other Receivables Details | Item | 2025 June 30 (RMB thousand) | 2024 December 31 (RMB thousand) | | :--- | :--- | :--- | | Recoverable Value-Added Tax (Net of Impairment Loss) | 9,518 | 13,561 | | Deposits Paid | 2,059 | 3,162 | | Prepayments | 1,837 | 1,883 | | Rental Receivables | 3 | 248 | | Others | 1,030 | 1,161 | | **Total** | **14,447** | **20,015** | [15 Other Financial Assets](index=34&type=section&id=15%20Other%20Financial%20Assets) As of June 30, 2025, total other financial assets amounted to RMB 133,819 thousand, including certificates of deposit at fair value through profit or loss of RMB 20,707 thousand, and certificates of deposit measured at amortized cost of RMB 10,082 thousand and time deposits with original maturity over three months of RMB 103,030 thousand, primarily used for treasury management to achieve higher returns Other Financial Assets Details | Item | 2025 June 30 (RMB thousand) | 2024 December 31 (RMB thousand) | | :--- | :--- | :--- | | Financial Assets at Fair Value Through Profit or Loss – Certificates of Deposit | 20,707 | 20,477 | | Financial Assets Measured at Amortized Cost – Certificates of Deposit | 10,082 | 10,000 | | Financial Assets Measured at Amortized Cost – Time Deposits with Original Maturity over Three Months | 103,030 | – | | **Total** | **133,819** | **30,477** | - Certificates of deposit at fair value through profit or loss are tradable at any time before maturity and are classified as current assets[167](index=167&type=chunk) - Certificates of deposit measured at amortized cost are not tradable or redeemable before maturity[167](index=167&type=chunk) - As of June 30, 2025, the fair value of certificates of deposit was determined using observable market data and classified as Level 2 financial assets[175](index=175&type=chunk)[180](index=180&type=chunk) [16 Trade Payables](index=37&type=section&id=16%20Trade%20Payables) As of June 30, 2025, total trade payables amounted to RMB 35,443 thousand, with the carrying amount being the same as the fair value due to their short-term nature, and the aging analysis showing the highest proportion of payables within 0 to 30 days Trade Payables Aging Analysis | Aging | 2025 June 30 (RMB thousand) | 2024 December 31 (RMB thousand) | | :--- | :--- | :--- | | 0 to 30 Days | 33,074 | 34,729 | | 31 to 60 Days | 278 | 43 | | Over 60 Days | 2,091 | 2,119 | | **Total** | **35,443** | **36,891** | [17 Accrued Charges and Other Payables](index=38&type=section&id=17%20Accrued%20Charges%20and%20Other%20Payables) As of June 30, 2025, total accrued charges and other payables amounted to RMB 42,350 thousand, primarily including deposits received of RMB 13,251 thousand and accrued employee benefit expenses of RMB 11,849 thousand Accrued Charges and Other Payables Details | Item | 2025 June 30 (RMB thousand) | 2024 December 31 (RMB thousand) | | :--- | :--- | :--- | | Deposits Received | 13,251 | 11,984 | | Accrued Employee Benefit Expenses | 11,849 | 6,748 | | Accrued Charges | 8,540 | 10,203 | | Advances Received | 5,645 | 5,267 | | Other Taxes Payable | 1,873 | 2,598 | | Others | 1,192 | 1,412 | | **Total** | **42,350** | **38,212** | [18 Share Capital](index=38&type=section&id=18%20Share%20Capital) As of June 30, 2025, the Company's authorized share capital was 10,000,000 thousand shares, with issued and fully paid share capital of 1,978,599 thousand shares, amounting to RMB 175,202 thousand, and no changes in share capital occurred during the period Share Capital Composition | Item | 2025 (Thousand Shares) | 2025 (HKD thousand) | 2024 (Thousand Shares) | 2024 (HKD thousand) | | :--- | :--- | :--- | :--- | :--- | | Authorized Ordinary Shares of HKD 0.10 Each | 10,000,000 | 1,000,000 | 10,000,000 | 1,000,000 | | Issued and Fully Paid Ordinary Shares of HKD 0.10 Each | 1,978,599 | 175,202 | 1,978,599 | 175,202 | - There were no changes in the Company's share capital during the six months ended June 30, 2025[185](index=185&type=chunk) [19 Reserves](index=39&type=section&id=19%20Reserves) As of June 30, 2025, the Group's total reserves amounted to RMB 608,991 thousand, an increase from the beginning of the period, with profit for the period of RMB 64,685 thousand increasing retained earnings, but partially offset by dividends paid of RMB 36,355 thousand and a decrease in exchange reserve Reserves Movement Summary | Item | Share Premium (RMB thousand) | Capital Reserve (RMB thousand) | Merger Reserve (RMB thousand) | Share-Based Payment Reserve (RMB thousand) | Exchange Reserve (RMB thousand) | Statutory Reserve (RMB thousand) | Retained Earnings (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | As of January 1, 2025 | 128,943 | 2,554 | 347 | 8,504 | (39,367) | 150,612 | 331,754 | 583,347 | | Profit for the Period | – | – | – | – | – | – | 64,685 | 64,685 | | Other Comprehensive Loss | – | – | – | – | (2,686) | – | – | (2,686) | | Dividends Declared or Paid | – | – | – | – | – | – | (36,355) | (36,355) | | As of June 30, 2025 | 128,943 | 2,554 | 347 | 8,504 | (42,053) | 150,612 | 360,084 | 608,991 | [20 Share-Based Payment Transactions](index=40&type=section&id=20%20Share-Based%20Payment%20Transactions) As of June 30, 2025, a total of 129,350,000 share options remained unexercised under the 2013 Share Option Scheme, with a weighted average exercise price of HKD 0.24, and no share options were granted, cancelled, exercised, or lapsed during the period, nor were any share-based payment expenses incurred 2013 Share Option Scheme Movement | Item | 2025 Weighted Average Exercise Price (HKD) | 2025 Number of Share Options (Thousand Shares) | 2024 Weighted Average Exercise Price (HKD) | 2024 Number of Share Options (Thousand Shares) | | :--- | :--- | :--- | :--- | :--- | | As of January 1 | 0.24 | 129,350 | 0.25 | 129,450 | | Lapsed During the Period | – | – | 4.50 | (100) | | As of June 30 | 0.24 | 129,350 | 0.24 | 129,350 | | Exercisable as of June 30 | 0.24 | 129,350 | 0.26 | 93,920 | - During the six months ended June 30, 2025, no share options were granted, cancelled, exercised, or lapsed, and no share-based payment expenses were incurred as of June 30, 2025[191](index=191&type=chunk) [21 Events After the Reporting Period](index=40&type=section&id=21%20Events%20After%20the%20Reporting%20Period) From June 30, 2025, until the approval date of these condensed consolidated interim financial statements, the Directors were not aware of any significant events that would materially affect the Group - From June 30, 2025, until the approval date of these condensed consolidated interim financial statements, the Directors were not aware of any significant events that would materially affect the Group[192](index=192&type=chunk) [22 Related Party Transactions](index=41&type=section&id=22%20Related%20Party%20Transactions) The Group had no significant transactions with related companies in the first half of 2025, and total key management personnel compensation increased year-on-year to RMB 6,543 thousand - The Group had no significant transactions with related companies during the six months ended June 30, 2025[196](index=196&type=chunk) 2025 First Half Key Management Personnel Compensation | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Salaries, Allowances and Bonuses | 6,437 | 4,006 | | Retirement Benefit Costs | 106 | 33 | | Share-Based Payment Expenses | – | 225 | | **Total** | **6,543** | **4,264** | [Other Information](index=42&type=section&id=Other%20Information) [Purchase, Sale or Redemption of the Company's Shares](index=42&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Shares) During the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's shares - During the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's shares[197](index=197&type=chunk)[202](index=202&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates or Joint Ventures](index=42&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20or%20Joint%20Ventures) During the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures - During the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures[198](index=198&type=chunk)[203](index=203&type=chunk) [Securities Transactions by Directors](index=42&type=section&id=Securities%20Transactions%20by%20Directors) The Company's Directors confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers during the six months ended June 30, 2025, and the Company was not aware of any non-compliance by relevant senior officers and employees - All Directors confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers during the six months ended June 30, 2025[199](index=199&type=chunk)[204](index=204&type=chunk) - The Company was not aware of any non-compliance with the Model Code by relevant senior officers and employees[200](index=200&type=chunk)[204](index=204&type=chunk) [Interests of Directors and Chief Executive](index=42&type=section&id=Interests%20of%20Directors%20and%20Chief%20Executive) As of June 30, 2025, several Directors and the Chief Executive held long positions in the Company's shares and underlying shares, primarily through share options, with Mr. Wang Jungang holding 51,800,000 underlying shares, representing 2.62% of the total issued shares Directors' and Chief Executive's Long Positions in the Company's Shares and Underlying Shares | Director Name | Capacity | Number of Shares Held | Number of Underlying Shares | Total Interests | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | :--- | :--- | | Mr. Cheung Chi Kai | Personal Interest | – | 23,200,000 | 23,200,000 | 1.17 | | Mr. Cheung Chi Kiu | Personal Interest | – | 20,200,000 | 20,200,000 | 1.02 | | Mr. Wang Jungang | Personal Interest | – | 51,800,000 | 51,800,000 | 2.62 | | Ms. Cheung Yuen Huen | Personal and Spouse's Interest | 3,600,000 | 18,700,000 | 22,300,000 | 1.13 | - Interests in underlying shares refer to interests in the Company's underlying shares involved in share options granted to Directors[208](index=208&type=chunk)[210](index=210&type=chunk) [Interests of Substantial Shareholders](index=44&type=section&id=Interests%20of%20Substantial%20Shareholders) As of June 30, 2025, the Company was notified that several substantial shareholders held 5% or more interests in the Company's issued share capital, with Lucky Earn International Ltd. holding 26.66%, Lemon Water Limited holding 10.04%, and BIDIBI Limited holding 5.09% Substantial Shareholders' Long Positions in the Company's Shares and Underlying Shares | Shareholder Name | Capacity | Total Interests | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | | Lucky Earn International Ltd. | Beneficial Owner | 527,442,915 | 26.66 | | Lemon Water Limited | Beneficial Owner | 198,719,493 | 10.04 | | Mr. Wan Liujun | Interest in Controlled Corporation | 198,719,493 | 10.04 | | BIDIBI Limited | Beneficial Owner | 100,701,535 | 5.09 | | Mr. Yu Zhongyin | Interest in Controlled Corporation | 100,701,535 | 5.09 | | Mr. Yu Zhongsu | Interest in Controlled Corporation | 100,701,535 | 5.09 | | Mr. Liu Haibo | Beneficial Owner | 99,408,000 | 5.02 | - Lucky Earn International Ltd. is beneficially owned by Mr. Cheung Chi Kai (Chairman and Executive Director), Mr. Cheung Chi Kiu (Executive Director and Chief Executive Officer), Ms. Cheung Yuen Huen (Executive Director), and her elder sister, each holding **26%**, **26%**, **24%**, and **24%** respectively[215](index=215&type=chunk)[216](index=216&type=chunk) [Share Option Schemes](index=45&type=section&id=Share%20Option%20Schemes) The Company terminated the 2013 Share Option Scheme and adopted a new 2022 Share Option Scheme on May 25, 2022, aimed at incentivizing eligible participants, with the total number of shares under the 2022 Scheme capped at 10% of issued shares and a 1% limit for any single participant within 12 months; as of June 30, 2025, 129,350,000 share options remained unexercised under the 2013 Scheme, while no share options were granted or exercised under the 2022 Scheme - The Company terminated the 2013 Share Option Scheme and adopted a new 2022 Share Option Scheme on **May 25, 2022**, with a validity period of ten years[218](index=218&type=chunk)[220](index=220&type=chunk)[224](index=224&type=chunk) - The 2022 Scheme aims to grant share options to full-time or part-time employees, officers, or Directors of the Group as incentives or rewards[221](index=221&type=chunk)[224](index=224&type=chunk) - Under the 2022 Scheme, the total number of share options available for grant is **181,405,662** shares, representing approximately **9.17%** of the Company's issued shares[226](index=226&type=chunk)[229](index=229&type=chunk) - As of June 30, 2025, a total of **129,350,000** share options granted under the 2013 Scheme remained unexercised[235](index=235&type=chunk)[237](index=237&type=chunk) [Changes in Directors' Information](index=49&type=section&id=Changes%20in%20Directors%27%20Information) Since the date of the 2024 Annual Report, Independent Non-Executive Director Mr. Wong Shun Choi resigned, and Ms. Xu Wenguan was appointed as an Independent Non-Executive Director and Chairman of the Nomination Committee, also serving as a member of the Audit Committee and Remuneration Committee - Effective **June 19, 2025**, Mr. Wong Shun Choi resigned as an independent non-executive director, and Ms. Xu Wenguan was appointed as an independent non-executive director and Chairman of the Nomination Committee, also serving as a member of the Audit Committee and Remuneration Committee[242](index=242&type=chunk)[247](index=247&type=chunk) [Compliance with Corporate Governance Code](index=49&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) For the six months ended June 30, 2025, the Company complied with all applicable code provisions of the Corporate Governance Code and will continue to strengthen its corporate governance practices - For the six months ended June 30, 2025, the Company complied with all applicable code provisions contained in the Corporate Governance Code[243](index=243&type=chunk)[248](index=248&type=chunk) [Sufficiency of Public Float](index=49&type=section&id=Sufficiency%20of%20Public%20Float) For the six months ended June 30, 2025, and up to the date of this report, the Company maintained a sufficient public float, representing more than 25% of the Company's total issued share capital, in accordance with the Listing Rules - For the six months ended June 30, 2025, and up to the date of this report, the Company maintained a sufficient public float, representing more than **25%** of the Company's total issued share capital[245](index=245&type=chunk)[249](index=249&type=chunk) [Review of the Condensed Consolidated Interim Financial Statements](index=49&type=section&id=Review%20of%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) The Audit Committee reviewed the Group's unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025, and deemed them prepared in accordance with applicable accounting standards - The Audit Committee reviewed the Group's unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025, and considered them prepared in accordance with applicable accounting standards[246](index=246&type=chunk)[250](index=250&type=chunk)

2025 中期業績報告 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在聯交所上市的公司 帶有較高投資風險。有意投資的人士應了解投資於該等公司的潛在風險，並應經過審慎周詳的 考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於主板買賣之證券承受較大 的市場波動風險，同時無法保證在GEM買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，對其準確性或完整性亦不發表 任何聲明，並明確表示，概不對因本報告全部或任何部份內容而產生或因倚賴該等內容而引致 的任何損失承擔任何責任。 本報告的資料乃遵照《香港聯合交易所有限公司GEM證券上市規則》（「GEM上市規則」）而刊載， 旨在提供有關僑洋國際控股有限公司（「本公司」或「我們」）及其附屬公司（統稱「本集團」）的資料； 本公司董事（「董事」）願就本報告的資料共同及個別地承擔全部責任。各董事在作出一切合理查 詢後，確認就其所知及所信，本報告所載資料在各重要方面均屬準確完備，沒有誤導或欺詐成分， 且並無遺漏任何事項，足以令致本報告或其所 ...

Clarification Announcement Overview [Purpose and Background of the Announcement](index=1&type=section&id=Purpose%20and%20Background) This announcement clarifies an unintentional clerical error in Hybrid Kinetic Group Limited's 2024 annual report concerning major subsidiary details, with other report contents remaining unchanged - This announcement is a supplementary clarification to Hybrid Kinetic Group Limited's 2024 annual report published on June 5, 2025[3](index=3&type=chunk) - The clarification addresses an unintentional clerical error in Note 29 'Details of the Company's Major Subsidiaries' on page 123 of the 2024 annual report's consolidated financial statements[3](index=3&type=chunk) [Correction to Major Subsidiaries Details](index=1&type=section&id=Major%20Subsidiaries%20Correction) Corrected details of major subsidiaries are provided, including registration, capital, ownership, and principal business Corrected Details of Major Subsidiaries | Name | Place of Incorporation/Registration | Issued/Paid-up Share Capital | Percentage of Ownership Interest/Voting Rights (%) | Principal Business | | :--- | :--- | :--- | :--- | :--- | | Million Power Group Limited | Hong Kong | HKD 1 | 100% | Investment Holding | | Lianyungang Hybrid Kinetic New Energy Co., Ltd. | PRC | Registered Capital USD 27,000,000 | 60.21% | Development of Advanced Battery Materials | | Shanghai Hybrid Kinetic Financial Leasing Co., Ltd. | PRC | Registered Capital USD 31,500,000 | 100% | Provision of Financial Leasing Services | [Board Composition and Other Statements](index=2&type=section&id=Board%20Composition%20and%20Other%20Statements) The 2024 annual report's other information remains unchanged, and the announcement lists the board members as of the publication date - Except for the corrections disclosed herein, all other information contained in the 2024 annual report remains unchanged, and this clarification announcement should be read in conjunction with the annual report[4](index=4&type=chunk) - As of September 1, 2025, the Board comprises two executive directors (Mr. Shan Chuanlong, Mr. Kong Fanxian), two non-executive directors (Mr. Ruan Jian, Mr. Zheng Yu), and three independent non-executive directors (Ms. Pan Hong, Mr. Wu Wenchang, Mr. Yuan Weiqiang)[6](index=6&type=chunk)