Financial Performance - The group achieved a record high in revenue and profit for the first half of 2025, with revenue and other income reaching HKD 14.08 billion, a 33% increase compared to HKD 10.62 billion in the first half of 2024[18]. - Shareholder profit amounted to HKD 8.52 billion, reflecting a 39% increase from HKD 6.13 billion in the same period last year[18]. - The main business revenue rose by 34% to HKD 12.95 billion, driven by record trading volumes in the spot and stock options markets[19]. - EBITDA for the first half of 2025 was HKD 10.94 billion, a 43% increase from HKD 7.66 billion in the previous year, with an EBITDA margin of 79%, up 6 percentage points[18]. - Basic earnings per share increased by 39% to HKD 6.74, compared to HKD 4.84 in the first half of 2024[19]. - The operating profit for the first half of 2025 was HKD 10,196 million, up from HKD 6,125 million in the first half of 2024[121]. - The total comprehensive income for the six months ended June 30, 2025, was HKD 9,045 million, compared to HKD 6,179 million in 2024, marking a 46.5% increase[186]. Trading Activity - The average daily trading amount of equity securities on the exchange was HKD 222.8 billion for the six months ending June 30, 2025, up 122% from HKD 100.3 billion in the same period of 2024[20]. - The average daily trading amount for the Stock Connect (Shanghai and Shenzhen) was RMB 171.3 billion, a 32% increase from RMB 130.2 billion in the previous year[20]. - The average daily trading amount of the Hong Kong Stock Connect reached HKD 111.0 billion, a significant increase of 196% from HKD 37.5 billion in the same period last year[20]. - The average daily trading amount in the securities market reached HKD 240.2 billion, a year-on-year increase of 118%[34]. - The average daily trading volume of LME metal contracts increased by 3% year-on-year, maintaining robust trading activity despite market volatility[37]. - The average daily trading amount for the Shanghai-Hong Kong Stock Connect reached RMB 171.3 billion, a 32% increase compared to the first half of 2024[60]. - The average daily trading volume of derivative contracts reached 1,700,322 contracts, an 11% increase compared to the first half of 2024, setting a new half-year record[82]. Operating Expenses - Operating expenses increased by 6% to HKD 2.97 billion, primarily due to a HKD 90 million fine paid to the FCA related to the 2022 nickel market incident[18]. - Operating expenses increased by 5% due to higher employee costs, but were partially offset by a decrease in charitable donations[24]. - The company’s operating expenses increased to HKD 2,973 million, compared to HKD 2,794 million in the previous year, reflecting a rise of 6.4%[185]. - Operating expenses increased by 22% in H1 2025, primarily due to a one-time FCA fine of $90 million and legal costs of $50 million related to the nickel market incident[94]. Capital Expenditure - The company announced a capital expenditure of HKD 1.81 billion for the purchase of a permanent headquarters property[19]. - Capital expenditure for the headquarters property was HKD 1.805 billion, marking a significant investment in company infrastructure[25]. - The company completed the acquisition of three full floors of the Trading Plaza for HKD 1.8 billion as part of its strategy to establish a permanent headquarters, with a total investment of HKD 6.3 billion planned for the entire project[110]. - The group incurred capital expenditures of HKD 2,559 million for the acquisition of the Hong Kong Stock Exchange headquarters property during the period[189]. Market Developments - The company plans to implement new measures to enhance market competitiveness and attractiveness in the second half of 2025, including shortening the settlement cycle for the spot market[4]. - The company has received a record number of new stock listing applications in the past six months, indicating strong market interest[4]. - The introduction of the "Tech Company Fast Track" aims to assist technology and biotech companies in preparing for listings more efficiently, enhancing market quality and transparency[39]. - The launch of the first Hang Seng Tech Index call options ETF and the first individual stock leveraged and inverse products further strengthens Hong Kong's position as a leading ETP market in the region[39]. Charity and Community Initiatives - The first half of 2025 saw a significant increase in donations from the Hong Kong Stock Exchange Charity Fund, rising 160% to HKD 78 million[19]. - The company plans to allocate at least HKD 25 million for a new flagship charity program focused on supporting caregivers as part of its community initiatives[115]. Governance and Compliance - Hong Kong Exchanges and Clearing Limited (HKEX) has complied with all provisions of the Corporate Governance Code, except for the rotation of directors as per B.2.2, for the six months ending June 30, 2025[152]. - The company has adopted the Standard Code as its code of conduct for directors in securities trading, with all directors confirming compliance for the six months ending June 30, 2025[154]. - The audit committee, along with external auditors, has reviewed the unaudited condensed consolidated financial statements for the six months ending June 30, 2025[139]. Shareholder Information - The interim dividend declared for the year ending December 31, 2025, is HKD 6.00 per share[171]. - The record date for the interim dividend is September 5, 2025, with the payment date set for September 16, 2025[172]. - The company purchased a total of 53,767 shares for a total amount of HKD 19 million under the share incentive plan during the six months ended June 30, 2025[168].

( 於開曼群島註冊成立的有限公司) 股份代號 : 8043 中 期 報 告 2025 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM之定位，乃為相比起其他在聯交所上市之公司帶有較高投資風險之中小型公司提供一個上市之市場。有 意投資者應了解投資於該等公司之潛在風險，並應經過審慎周詳之考慮後方作出投資決定。 因GEM上市公司普遍為中小型公司，在GEM買賣之證券可能會較在主板買賣之證券承受較大之市場波動風 險，同時無法保證在GEM買賣之證券會有高流通量之市場。 香港交易及結算所有限公司及聯交所對本報告之內容概不負責，對其準確性或完整性亦不發表任何聲明，並明 確表示概不就因本報告全部或任何部分內容而產生或因依賴該等內容而引致之任何損失承擔任何責任。 本報告的資料乃遵照聯交所GEM證券上市規則（「GEM上市規則」）的規定提供有關Atlinks Group Limited（「本公 司」，連同其附屬公司統稱「本集團」或「我們」）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。董事經作出一切合理查詢後確認，就彼等所深知及確信，本報告所載資料在各重大方面均屬準確 及完整，且並無誤導或欺詐成分 ...

[Company Information and Financial Highlights](index=1&type=section&id=I.%20Company%20Information%20and%20Financial%20Highlights) [Company Basic Information](index=1&type=section&id=1.1%20Company%20Basic%20Information) Gilstongroup Limited is a company incorporated in the Cayman Islands, with its shares listed on the Hong Kong Stock Exchange - Company Name: Gilstongroup Limited (Stock Code: 2011)[2](index=2&type=chunk) - Place of Incorporation: Cayman Islands[2](index=2&type=chunk) - Place of Listing: Hong Kong Stock Exchange[2](index=2&type=chunk) [Financial Highlights](index=1&type=section&id=1.2%20Financial%20Highlights) For the six months ended June 30, 2025, revenue increased by 21.3% to HK$194,615 thousand, profit for the period surged by 193.2% to HK$30,882 thousand, and basic earnings per share rose to 4.6 HK cents Financial Highlights for the Six Months Ended June 30 | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 194,615 | 160,386 | 21.3% | | Gross Profit | 99,349 | 88,910 | 11.7% | | Gross Profit Margin | 51.0% | 55.4% | (7.9%) | | Profit for the period | 30,882 | 10,533 | 193.2% | | Profit for the period attributable to owners of the Company | 26,372 | 10,846 | 143.1% | | Basic earnings per share (HK cents) | 4.6 | 1.9 | 142.1% | | Diluted earnings per share (HK cents) | 4.5 | 1.8 | 150.0% | Statement of Financial Position Highlights as at June 30, 2025 | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 597,064 | 551,788 | 8.2% | | Cash and cash equivalents | 120,585 | 141,480 | (14.8%) | | Total equity attributable to owners of the Company | 213,826 | 180,866 | 18.2% | [Condensed Consolidated Financial Statements](index=2&type=section&id=II.%20Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=2.1%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the company reported revenue of HK$194,615 thousand and cost of sales of HK$95,266 thousand, resulting in a gross profit of HK$99,349 thousand, with profit for the period significantly increasing to HK$30,882 thousand due to income tax credit Key Data from Condensed Consolidated Statement of Profit or Loss | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 194,615 | 160,386 | | Cost of sales | (95,266) | (71,476) | | Gross Profit | 99,349 | 88,910 | | Profit before tax | 28,694 | 24,082 | | Income tax credit/(expense) | 2,188 | (13,549) | | Profit for the period | 30,882 | 10,533 | | Profit for the period attributable to owners of the Company | 26,372 | 10,846 | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=2.2%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, total comprehensive income for the period significantly increased to HK$36,609 thousand, driven by higher profit for the period and exchange differences from translating PRC subsidiaries' financial statements Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Profit for the period | 30,882 | 10,533 | | Exchange differences arising from translation of financial statements of PRC subsidiaries | 5,727 | (1,949) | | Total comprehensive income for the period | 36,609 | 8,584 | | Total comprehensive income for the period attributable to owners of the Company | 31,674 | 9,146 | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=2.3%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As at June 30, 2025, total assets increased to HK$597,064 thousand, with growth in both non-current and current assets, while total current and non-current liabilities slightly decreased, leading to a significant increase in net assets and total equity attributable to owners of the Company Key Data from Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | **Non-current assets** | | | | Property, plant and equipment | 65,834 | 50,903 | | Right-of-use assets | 59,018 | 64,231 | | Prepayments and lease deposits | 172,267 | 164,749 | | **Current assets** | | | | Inventories | 38,411 | 36,393 | | Trade and other receivables | 130,947 | 67,048 | | Cash and cash equivalents | 120,585 | 141,480 | | **Current liabilities** | | | | Trade and other payables | 128,933 | 114,904 | | Bank borrowings | 27,968 | 19,082 | | **Non-current liabilities** | | | | Bank borrowings | 94,325 | 95,409 | | Lease liabilities | 67,140 | 72,694 | | **Equity** | | | | Total equity attributable to owners of the Company | 213,826 | 180,866 | | Total equity | 230,488 | 192,593 | [Notes to the Condensed Consolidated Interim Financial Statements](index=6&type=section&id=III.%20Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) [General Information and Basis of Preparation](index=6&type=section&id=3.1%20General%20Information%20and%20Basis%20of%20Preparation) These interim financial statements are prepared in accordance with the HKEX Listing Rules and HKAS 34, involving judgments, estimates, and assumptions where actual results may differ - The Company is an exempted company incorporated in the Cayman Islands, with its shares listed on the Hong Kong Stock Exchange[9](index=9&type=chunk) - The financial statements are prepared in accordance with the HKEX Listing Rules and HKAS 34[10](index=10&type=chunk) [Significant Accounting Policies and Changes](index=6&type=section&id=3.2%20Significant%20Accounting%20Policies%20and%20Changes) The condensed consolidated interim financial statements adopt the same accounting policies as the 2024 annual financial statements, with the only change being the adoption of amendments to HKAS 21 "Lack of Exchangeability," which had no significant impact on the Group's financial statements - Accounting policies are consistent with the 2024 annual financial statements, except for changes required to be adopted for the 2025 annual financial statements[11](index=11&type=chunk) - Amendments to HKAS 21 "Lack of Exchangeability" became effective on January 1, 2025, with no significant impact on the Group[12](index=12&type=chunk) [Segment Reporting](index=7&type=section&id=3.3%20Segment%20Reporting) The Group manages its business by business line and geographical area, having added a property management services segment since September 2023, now primarily operating two segments: zipper manufacturing and sales, and property management services - The Group manages its business by business line and geographical area[13](index=13&type=chunk) - A new operating and reportable segment for property management services in Mainland China was added since September 2023[13](index=13&type=chunk) - Management assesses segment performance based on revenue less directly attributable selling and service costs, distribution expenses, and administrative expenses[14](index=14&type=chunk) [Business Segments](index=7&type=section&id=3.3.1%20Business%20Segments) For the six months ended June 30, 2025, zipper business revenue was HK$129,011 thousand and property management services revenue was HK$65,604 thousand, with the latter contributing significantly to profit despite higher depreciation and non-current asset additions Business Segment Revenue and Profit | Segment | 2025 Revenue (HK$ thousand) | 2025 Profit (HK$ thousand) | 2024 Revenue (HK$ thousand) | 2024 Profit (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Manufacturing and sales of zippers | 129,011 | 11,137 | 115,115 | 4,189 | | Provision of property management services | 65,604 | 29,733 | 45,271 | 43,551 | | **Total** | **194,615** | **40,870** | **160,386** | **47,740** | [Reconciliation of Segment Results](index=9&type=section&id=3.3.2%20Reconciliation%20of%20Segment%20Results) For the six months ended June 30, 2025, reportable segment profit was HK$40,870 thousand, which, after adjustments for other income and losses, interest expenses, share-based payments, and unallocated head office expenses, resulted in a consolidated profit before tax of HK$28,694 thousand Reconciliation of Segment Results | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Reportable segment revenue | 194,615 | 160,386 | | Consolidated revenue | 194,615 | 160,386 | | Reportable segment profit from external customers | 40,870 | 47,740 | | Other income and (losses)/gains, net | 3,232 | (4,186) | | Interest on lease liabilities | (2,214) | (1,952) | | Interest expense on loans | (2,128) | (4) | | Share-based payments | (1,285) | (5,525) | | Unallocated head office and corporate expenses | (9,781) | (11,991) | | **Consolidated profit before tax** | **28,694** | **24,082** | [Revenue](index=9&type=section&id=3.4%20Revenue) The Group's principal activities are manufacturing and selling zippers, slider heads, and related products, and providing property management services, with total revenue of HK$194,615 thousand for the six months ended June 30, 2025 - The Group's principal activities are manufacturing and selling zippers, slider heads, and other related products[17](index=17&type=chunk) Major Revenue Categories | Revenue Category | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Sales of goods (zippers in rolls and slider heads, others) | 129,011 | 115,115 | | Service income (property management fee income) | 65,604 | 45,271 | | **Total Revenue** | **194,615** | **160,386** | [Profit Before Tax](index=10&type=section&id=3.5%20Profit%20Before%20Tax) Profit before tax is influenced by staff costs, other income and losses, and depreciation and amortization; staff costs slightly decreased, other income net turned from loss to gain, and depreciation and amortization significantly increased due to investment property additions [Staff Costs](index=10&type=section&id=3.5.1%20Staff%20Costs) For the six months ended June 30, 2025, total staff costs were HK$61,767 thousand, a slight decrease from the prior period, primarily due to reduced salaries and benefits, offset by increased contributions to defined contribution retirement plans Staff Costs Composition | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Salaries, wages and other benefits | 51,370 | 54,199 | | Contributions to defined contribution retirement plans | 9,112 | 4,976 | | Share-based payments | 1,285 | 5,525 | | **Total** | **61,767** | **64,700** | [Other Income and (Losses)/Gains, Net](index=10&type=section&id=3.5.2%20Other%20Income%20and%20%28Losses%29%2FGains,%20Net) For the six months ended June 30, 2025, other income and gains, net, amounted to HK$3,232 thousand, a significant improvement from a loss of HK$4,186 thousand in the prior period, mainly due to increased net foreign exchange gains and a substantial reduction in losses from disposal of property, plant and equipment Other Income and (Losses)/Gains, Net | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Interest income | 355 | 141 | | Loss on disposal of property, plant and equipment | (27) | (5,783) | | Government grants | 183 | 158 | | Net foreign exchange gains | 1,480 | 991 | | Others | 1,241 | 307 | | **Total** | **3,232** | **(4,186)** | [Other Items](index=10&type=section&id=3.5.3%20Other%20Items) For the six months ended June 30, 2025, total depreciation and amortization significantly increased to HK$31,010 thousand, primarily due to higher depreciation of investment properties, while impairment loss provision for inventories substantially decreased and cost of services provided significantly rose Key Data for Other Items | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Depreciation and amortization | 31,010 | 12,080 | | - Property, plant and equipment | 6,225 | 6,012 | | - Intangible assets | 136 | 173 | | - Right-of-use assets | 7,198 | 5,895 | | - Investment properties | 17,451 | – | | Provision for impairment loss on inventories | 195 | 1,980 | | Cost of services provided | 20,223 | 1,168 | | Cost of inventories | 75,043 | 70,309 | [Income Tax](index=11&type=section&id=3.6%20Income%20Tax) For the six months ended June 30, 2025, the company recorded an income tax credit of HK$2,188 thousand, compared to an expense of HK$13,549 thousand in the prior period, with its PRC subsidiary, Kaiyi Guangdong, enjoying a preferential income tax rate of 15% as a high-tech enterprise until 2025 Income Tax | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Current tax - PRC Enterprise Income Tax | (2,188) | 13,699 | | Deferred tax | – | (150) | | **Total** | **(2,188)** | **13,549** | - Kaiyi Guangdong, as a high-tech enterprise, enjoys a preferential income tax rate of **15% until 2025**, with the normal tax rate being 25%[22](index=22&type=chunk) - Dividends paid by PRC resident enterprises to non-PRC resident enterprise investors are subject to a **10% withholding income tax**, which can be reduced to 5% for eligible Hong Kong tax residents[22](index=22&type=chunk) [Earnings Per Share](index=12&type=section&id=3.7%20Earnings%20Per%20Share) For the six months ended June 30, 2025, basic earnings per share were 4.6 HK cents and diluted earnings per share were 4.5 HK cents, both significantly increasing from the prior period due to higher profit attributable to owners of the Company Basis for Earnings Per Share Calculation | Item | 2025 (HK$ thousand/share) | 2024 (HK$ thousand/share) | | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company for basic and diluted EPS calculation | 26,372 | 10,846 | | Weighted average number of ordinary shares for basic EPS calculation | 574,497,800 | 572,842,888 | | Effect of potential dilutive ordinary shares on share options | 6,633,384 | 15,513,355 | | Weighted average number of ordinary shares for diluted EPS calculation | 581,131,184 | 588,356,243 | [Trade and Other Receivables](index=13&type=section&id=3.8%20Trade%20and%20Other%20Receivables) As at June 30, 2025, total trade and other receivables significantly increased to HK$303,214 thousand from December 31, 2024, with trade receivables and bills receivable rising to HK$99,110 thousand and prepayments also increasing substantially Ageing Analysis of Trade and Other Receivables | Ageing | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Within 1 month | 46,168 | 24,060 | | Over 1 month but within 2 months | 31,074 | 20,174 | | Over 2 months but within 3 months | 12,161 | 8,902 | | Over 3 months | 9,707 | 9,970 | | **Total Trade Receivables and Bills Receivable** | **99,110** | **63,106** | Prepayments and Other Receivables | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Prepayments (property, plant and equipment, investment properties, others) | 198,166 | 163,973 | | Lease deposits | 3,989 | 3,882 | | Others | 1,949 | 836 | | **Total** | **303,214** | **231,797** | [Trade and Other Payables](index=14&type=section&id=3.9%20Trade%20and%20Other%20Payables) As at June 30, 2025, total trade and other payables increased to HK$128,933 thousand from December 31, 2024, with growth in trade payables, salaries and staff welfare payable, accrued expenses, and payables for property, plant and equipment purchases Ageing Analysis of Trade and Other Payables | Ageing | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Within 1 month | 6,166 | 4,409 | | Over 1 month but within 3 months | 9,788 | 6,414 | | Over 3 months but within 6 months | 1,969 | 697 | | Over 6 months | 828 | 1,349 | | **Total Trade Payables** | **18,751** | **12,869** | Other Payables | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Salaries and staff welfare payable | 32,438 | 33,392 | | Accrued expenses | 19,958 | 20,613 | | Payables for purchase of property, plant and equipment | 19,010 | 3,010 | | Other tax payables | 3,450 | 8,434 | | Contract liabilities | 1,123 | 986 | | Other payables | 31,396 | 2,180 | | Deposits received | – | 31,916 | | Prepayments under HKFRS 16 | 2,807 | 1,504 | | **Total** | **128,933** | **114,904** | [Dividends](index=14&type=section&id=3.10%20Dividends) The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2025, consistent with the prior period - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (2024: nil)[28](index=28&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=IV.%20Management%20Discussion%20and%20Analysis) [Business Review and Outlook](index=15&type=section&id=4.1%20Business%20Review%20and%20Outlook) The Group successfully turned losses into profits during the reporting period through operational strategy adjustments and diversified development, achieving significant growth in profit attributable to owners of the Company, and will continue to explore innovation, adapt flexibly, and address challenges in the zipper business [Overall Business Performance](index=15&type=section&id=4.1.1%20Overall%20Business%20Performance) For the six months ended June 30, 2025, profit attributable to owners of the Company was approximately HK$26,370 thousand, a substantial increase from HK$10,850 thousand in the prior period, mainly due to higher revenue and profit sharing from direct operation of Jiajinlong Auto City - Profit attributable to owners of the Company increased from approximately **HK$10,850 thousand** in the prior period of 2024 to approximately **HK$26,370 thousand** in 2025[30](index=30&type=chunk) - The increase in profit is primarily due to direct operation of Jiajinlong Auto City, resulting in higher revenue and profit sharing[30](index=30&type=chunk) [Zipper Business](index=15&type=section&id=4.1.2%20Zipper%20Business) The zipper business primarily serves Chinese apparel brands and OEMs for some internationally renowned apparel brands, with the Group maintaining close cooperation to provide zippers and other apparel accessories - Zipper business customers are mainly Chinese apparel brands and OEMs for some internationally renowned apparel brands[29](index=29&type=chunk) - The Group maintains close cooperation with apparel brands, providing zippers and apparel accessories[29](index=29&type=chunk) [Jiajinlong Auto City Business](index=15&type=section&id=4.1.3%20Jiajinlong%20Auto%20City%20Business) Since January 2025, the Group has directly operated Jiajinlong Auto City by subscribing to 90% of Shenzhen Jiajinlong Industrial Development Co., Ltd.'s equity, with the land use rights renewed for up to five years and actively pursuing a 20-year renewal - Since January 2025, the Group has directly operated Jiajinlong Auto City business by subscribing to **90% equity** of Shenzhen Jiajinlong Industrial Development Co., Ltd[29](index=29&type=chunk) - The land use rights for Jiajinlong Auto City have been renewed for a maximum of **five years**, and the Group is actively seeking a **20-year renewal**[32](index=32&type=chunk) [Future Outlook and Strategies](index=15&type=section&id=4.1.4%20Future%20Outlook%20and%20Strategies) Facing a complex and challenging economic environment, the Group will continue to explore innovation, adapt flexibly, leverage its strengths, and build a solid foundation for sustainable development, while maintaining a conservative stance on the zipper business and enhancing competitiveness through capacity integration, process improvement, and strengthened financial and talent management - The Group will continue to explore innovation, adapt flexibly, leverage its strengths, and is committed to building a solid and sustainable development foundation[31](index=31&type=chunk) - A conservative approach is adopted for the zipper business, with plans to enhance competitiveness through integrating existing production capacity, increasing automation, improving processes and product quality, strict cost control, and strengthening financial and talent management[33](index=33&type=chunk)[34](index=34&type=chunk) [Financial Review](index=17&type=section&id=4.2%20Financial%20Review) For the six months ended June 30, 2025, the Group's revenue increased by 21.3%, primarily due to the expansion of property management business, while distribution costs and administrative expenses both increased, but profit attributable to owners of the Company and profit margin significantly improved [Revenue Analysis](index=17&type=section&id=4.2.1%20Revenue%20Analysis) For the six months ended June 30, 2025, total revenue was approximately HK$194,600 thousand, a 21.3% increase year-on-year, with significant contributions from property management business and a 12.1% growth in zipper business revenue - Total revenue was approximately **HK$194,600 thousand**, an increase of approximately **21.3%** compared to the prior period of 2024, mainly due to the expansion of new property management business[35](index=35&type=chunk) Total Revenue by Business Segment | Business Segment | 2025 (HK$ thousand) | 2025 (%) | 2024 (HK$ thousand) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Zipper Business | 129,011 | 66.3 | 115,115 | 71.8 | | Property Management Business | 65,604 | 33.7 | 45,271 | 28.2 | | **Total Revenue** | **194,615** | **100.0** | **160,386** | **100.0** | - Zipper business revenue was approximately **HK$129,000 thousand**, an increase of approximately **12.1%** compared to the prior period of 2024[38](index=38&type=chunk) [Expenses and Costs](index=18&type=section&id=4.2.2%20Expenses%20and%20Costs) Distribution costs increased by 21.7% to approximately HK$13,400 thousand, mainly due to increased sales activities and advertising, while administrative expenses rose by 16.3% to approximately HK$56,200 thousand, primarily due to the consolidation of property management business - Distribution costs increased by approximately **21.7%** to approximately **HK$13,400 thousand**, mainly due to increased sales activities and advertising[39](index=39&type=chunk) - Administrative expenses increased by approximately **16.3%** to approximately **HK$56,200 thousand**, primarily due to the consolidation of property management business[39](index=39&type=chunk) [Profitability](index=18&type=section&id=4.2.3%20Profitability) For the six months ended June 30, 2025, profit attributable to owners of the Company was approximately HK$26,400 thousand, a significant increase from HK$10,800 thousand in the prior period, with the profit margin attributable to owners of the Company rising to approximately 13.6% (2024: 6.8%) - Profit attributable to owners of the Company increased from approximately **HK$10,800 thousand** in the prior period of 2024 to approximately **HK$26,400 thousand** in 2025[40](index=40&type=chunk) - The profit margin attributable to owners of the Company increased to approximately **13.6%** (2024: 6.8%)[40](index=40&type=chunk) [Connected Transactions](index=18&type=section&id=4.3%20Connected%20Transactions) The Group has several connected transactions involving land and building leases with related parties, including properties in Hong Kong, a Zhejiang production base, and a Guangdong factory, all assessed by independent property valuers with monthly rents deemed fair and reasonable at market rates - Renewed lease agreement for Hong Kong property with Shengdian Limited (owned by Mr. Xu Xipeng and Mr. Xu Xinan), with a monthly rent of **HK$52,600**[41](index=41&type=chunk) - Renewed lease agreement for Zhejiang production base with Foshan Nanhai Jinheming Investment Co., Ltd. (owned by Mr. Xu Xipeng and Mr. Xu Xinan), with a monthly rent of **RMB607,000**[42](index=42&type=chunk) - Renewed lease agreement for Guangdong factory with Mr. Xu Xipeng and Mr. Xu Xinan, with a monthly rent of **RMB428,980**[42](index=42&type=chunk) - Lease agreement for PRC property (Zhejiang production base) with Kaiyi Jingmen (owned by Mr. Xu Xipeng and Mr. Xu Xinan), with a monthly rent of **RMB969,735**, for a term until August 31, 2029[45](index=45&type=chunk) [High-Tech Enterprise Recognition and Tax Incentives](index=20&type=section&id=4.4%20High-Tech%20Enterprise%20Recognition%20and%20Tax%20Incentives) Kaiyi Guangdong, an 85%-owned subsidiary of the Company, continues to be recognized as a high-tech enterprise, enjoying a preferential income tax rate of 15% in China until 2025, compared to the normal rate of 25% - Kaiyi Guangdong continues to be recognized as a high-tech enterprise[44](index=44&type=chunk) - Kaiyi Guangdong is eligible for a preferential income tax rate of **15% until 2025**, with the normal tax rate being 25%[44](index=44&type=chunk) [Liquidity and Capital Resources](index=21&type=section&id=4.5%20Liquidity%20and%20Capital%20Resources) The Group is committed to ensuring sufficient funds for operational needs and improving capital utilization efficiency; as at June 30, 2025, net cash outflow from operating activities significantly decreased, the gearing ratio declined, and bank borrowings slightly increased [Cash Flow](index=21&type=section&id=4.5.1%20Cash%20Flow) For the six months ended June 30, 2025, net cash outflow from operating activities was approximately HK$1,400 thousand, a significant reduction from the prior period, while net cash outflow from investing activities slightly increased, and net cash outflow from financing activities significantly decreased, resulting in a reduction of cash and cash equivalents by approximately HK$20,900 thousand - Net cash outflow from operating activities was approximately **HK$1,400 thousand** (2024: outflow of HK$10,820 thousand), mainly due to an increase in trade payables[47](index=47&type=chunk) - Net cash outflow from investing activities was approximately **HK$20,600 thousand** (2024: HK$18,500 thousand), primarily attributable to payments for property, plant and equipment[47](index=47&type=chunk) - Net cash outflow from financing activities was approximately **HK$7,600 thousand** (2024: HK$20,870 thousand)[47](index=47&type=chunk) - Cash and cash equivalents decreased by approximately **HK$20,900 thousand** to **HK$120,600 thousand**[47](index=47&type=chunk) [Gearing Ratio and Bank Borrowings](index=21&type=section&id=4.5.2%20Gearing%20Ratio%20and%20Bank%20Borrowings) The Group's gearing ratio decreased from 60.1% in 2024 to 53.1% in 2025, with total bank borrowings slightly increasing to approximately HK$122,300 thousand, some of which are unsecured, bear fixed interest rates, and are guaranteed and pledged by subsidiary directors and their associates - The gearing ratio was **53.1%** (2024: 60.1%)[49](index=49&type=chunk) - Total bank borrowings were approximately **HK$122,300 thousand** (2024: approximately HK$114,490 thousand)[50](index=50&type=chunk) - Of these, **HK$19,194 thousand** were unsecured, bore a fixed interest rate of **3.5%**, and were guaranteed and pledged by subsidiary directors and their associates[50](index=50&type=chunk) [Net Current Assets](index=22&type=section&id=4.5.3%20Net%20Current%20Assets) As at June 30, 2025, net current assets increased to HK$90,300 thousand, an increase of approximately HK$31,100 thousand from December 31, 2024, with major components including inventories, trade and other receivables, and cash and cash equivalents - Net current assets increased by approximately **HK$31,100 thousand** from approximately HK$59,200 thousand as at December 31, 2024, to **HK$90,300 thousand** as at June 30, 2025[51](index=51&type=chunk) - Major components of current assets include inventories of approximately **HK$38,400 thousand**, trade and other receivables of approximately **HK$125,400 thousand**, and cash and cash equivalents of approximately **HK$120,600 thousand**[51](index=51&type=chunk) [Pledged Assets](index=22&type=section&id=4.5.4%20Pledged%20Assets) As at June 30, 2025, the Group had no pledged assets - The Group had no pledged assets as at June 30, 2025[52](index=52&type=chunk) [Contingent Liabilities](index=22&type=section&id=4.6%20Contingent%20Liabilities) Two of the Group's subsidiaries face two alleged product infringement lawsuits, with plaintiffs claiming a total of RMB2,000,000 for economic losses and reasonable expenses, and demanding cessation of production and destruction of inventory; management believes these lawsuits will not have a material impact on the financial position or performance - Two subsidiaries are facing two alleged product infringement lawsuits[53](index=53&type=chunk) - Plaintiffs are claiming a total of **RMB2,000,000** for economic losses and reasonable expenses, and demanding cessation of production and destruction of inventory[53](index=53&type=chunk) - Management believes that any liabilities arising from these cases will not have a material impact on the Group's financial position or performance[54](index=54&type=chunk) [Foreign Currency Risk](index=23&type=section&id=4.7%20Foreign%20Currency%20Risk) Individual companies within the Group have limited foreign currency risk, with most transactions denominated in their functional currencies, and no hedging against exchange rate fluctuation risk was undertaken for the six months ended June 30, 2025 - Individual companies within the Group have limited foreign currency risk, with most transactions denominated in their functional currencies[55](index=55&type=chunk) - The Group did not hedge against exchange rate fluctuation risk for the six months ended June 30, 2025[55](index=55&type=chunk) [Employees](index=23&type=section&id=4.8%20Employees) As at June 30, 2025, the Group had 696 full-time employees, a decrease from the prior period, with staff costs of approximately HK$61,800 thousand, slightly lower than the prior period, mainly due to increased workers from human resource integration and share-based payments - As at June 30, 2025, the Group had **696 full-time employees** (June 30, 2024: 753 employees)[56](index=56&type=chunk) - For the six months ended June 30, 2025, staff costs were approximately **HK$61,800 thousand** (prior period of 2024: approximately HK$64,700 thousand)[56](index=56&type=chunk) - The increase in staff costs was mainly due to an increase in the number of workers from human resource integration and share-based payments[56](index=56&type=chunk) [Interim Dividends](index=23&type=section&id=4.9%20Interim%20Dividends) The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025[57](index=57&type=chunk) [Events After Reporting Period](index=23&type=section&id=4.10%20Events%20After%20Reporting%20Period) The application for renewal of Jiajinlong Auto City's land use rights is ongoing, with a transitional period granted until July 15, 2028, potentially extending to July 15, 2030, and the Group is actively assisting the lessee in processing the 20-year renewal - The application for renewal of Jiajinlong Auto City's land use rights is still in progress[58](index=58&type=chunk) - A transitional period has been granted until **July 15, 2028**, and may be unconditionally extended to **July 15, 2030**[58](index=58&type=chunk) - The operating period of Jiajinlong Auto City has been extended to **July 15, 2030**, but may be affected by the renewal of land use rights[58](index=58&type=chunk) [Corporate Governance and Other Information](index=24&type=section&id=V.%20Corporate%20Governance%20and%20Other%20Information) [Share Option Scheme](index=24&type=section&id=5.1%20Share%20Option%20Scheme) The Company adopted a new share option scheme to incentivize eligible participants, with the total number of shares involved in granted options capped at 10% of the total issued shares, or 55,776,480 options, and no granted options were cancelled for the six months ended June 30, 2025 - The Company adopted a new share option scheme to incentivize eligible participants[60](index=60&type=chunk) - Under the scheme, the total number of shares involved in granted options is capped at **10% of the total issued shares**, or **55,776,480 options**[60](index=60&type=chunk) - No granted share options were subsequently cancelled for the six months ended June 30, 2025[61](index=61&type=chunk) [Compliance with Corporate Governance Code](index=24&type=section&id=5.2%20Compliance%20with%20Corporate%20Governance%20Code) For the six months ended June 30, 2025, the Company complied with all provisions of the Corporate Governance Code, except for certain independent non-executive directors who were unable to attend the Annual General Meeting due to personal reasons - The Company complied with all provisions of the Corporate Governance Code, except that certain independent non-executive directors were unable to attend the Annual General Meeting on June 19, 2025, due to personal reasons[62](index=62&type=chunk) [Directors and Relevant Employees' Compliance with Model Code](index=24&type=section&id=5.3%20Directors%20and%20Relevant%20Employees%27%20Compliance%20with%20Model%20Code) The Company has adopted the Model Code as the code of conduct for directors' securities transactions, requiring all directors to confirm compliance, and has also adopted a code of conduct for relevant employees' securities transactions, requiring their adherence - The Company has adopted the Model Code as the code of conduct for directors' securities transactions, and all directors have confirmed compliance[63](index=63&type=chunk) - The Company has adopted a code of conduct for relevant employees' securities transactions, requiring their compliance[64](index=64&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=25&type=section&id=5.4%20Purchase,%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) For 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 - For 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[65](index=65&type=chunk) [Audit Committee](index=25&type=section&id=5.5%20Audit%20Committee) The Group's unaudited interim results for the six months ended June 30, 2025, have been reviewed by the Board's Audit Committee - The Group's unaudited interim results for the six months ended June 30, 2025, have been reviewed by the Board's Audit Committee[66](index=66&type=chunk) [Publication of Interim Results and Interim Report](index=25&type=section&id=5.6%20Publication%20of%20Interim%20Results%20and%20Interim%20Report) This interim results announcement has been published on the HKEX website and the Company's website, and the interim report will be made available to shareholders and accessible online in due course - This interim results announcement has been published on the HKEX website (www.hkexnews.hk) and the Company's website (https://www.irasia.com/listco/hk/gilstongroup/)[67](index=67&type=chunk) - The interim report for the six months ended June 30, 2025, will be made available to shareholders and accessible online in due course[67](index=67&type=chunk) [Definitions](index=25&type=section&id=5.7%20Definitions) This section provides definitions for key terms used in the report, including Board, Corporate Governance Code, Company, Directors, Group, HK$, Listing Rules, OEM, PRC, RMB, Main Board, Model Code, SFO, Shares, Shareholders, and Stock Exchange - Provides definitions for key terms used in the report[68](index=68&type=chunk)[71](index=71&type=chunk)[72](index=72&type=chunk)

(於香港註冊成立的有限公 司 ) 股份代號: 8191 2025 報告 中期 目錄 | 公司資料 | 2 | | --- | --- | | 財務摘要 | 3 | | 未經審核簡明綜合損益及其他全面收益表 | 4 | | 未經審核簡明綜合財務狀況表 | 5 | | 未經審核簡明綜合權益變動表 | 7 | | 未經審核簡明綜合現金流量表 | 8 | | 未經審核簡明綜合財務報表附註 | 9 | | 管理層討論及分析 | 30 | 公司資料 註冊辦事處 香港金鐘夏愨道18號 海富中心1期 6樓603室 香港總辦事處 香港金鐘夏愨道18號 海富中心1期 6樓603室 中華人民共和國（「中國」）主要營業地點 中國廣東省 韶關市仁化縣工業園 授權代表 黃長樂先生 鄺麟基先生 執行董事 黃長樂先生 劉加勇先生（於二零二五年八月十一日辭任） 黃建澄先生 獨立非執行董事 錢小瑜女士 張偉賢先生 郭恩生先生 合規主任 黃建澄先生 主要往來銀行 中國農業銀行股份有限公司 中國工商銀行股份有限公司 審核委員會 張偉賢先生 （主席） 錢小瑜女士 郭恩生先生 薪酬委員會 郭恩生先生 （主席） 黃長樂先生 張偉賢先生 提名委員會 卓佳證 ...

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) The group experienced a decrease in revenue and gross profit, with a decline in gross margin primarily due to reduced RV sales and promotional pricing Financial Highlights for the Six Months Ended June 30, 2025 | Metric | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Change (RMB million) | Change Percentage | Primary Reason | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 411.7 | 422.0 | -10.3 | -2.4% | Decrease in RV sales | | Gross Profit | 121.6 | 134.9 | -13.3 | -9.9% | Decrease in RV sales | | Gross Margin | 29.5% | 32.0% | -2.5% | - | Promotional pricing strategy for newly launched RVs | | Cost of Sales | 290.1 | 287.1 | +3.0 | +1.0% | - | [Definitions and Technical Terms](index=2&type=section&id=Definitions%20and%20Technical%20Terms) This section provides definitions for key terms and technical vocabulary used throughout the report [Business Review](index=4&type=section&id=Business%20Review) The group optimized its RV product lines, expanded into new international markets, and reinforced its leading position in Australia and New Zealand [Products and Brands](index=4&type=section&id=Products%20and%20Brands) The group optimized its RV product line during the reporting period, adding 5 new models and discontinuing 5, maintaining a total of 50 models, with total deliveries decreasing by 4.2% year-over-year - **Five new RV models** (SRP14, SRP17, SRP20, SRV19, and SRV22) were introduced, while five models (SRP18, SRT20F, SRC23, SRS12, and SRL196 under the Regent brand) were discontinued as part of a brand repositioning plan[7](index=7&type=chunk) - As of June 30, 2025, the company offers **50 RV models** across nine series under three brands: Snowy River (mid-range bestseller), Regent (luxury brand, temporarily withdrawn for repositioning), and NEWGEN (semi-off-road brand)[7](index=7&type=chunk) RV Deliveries for H1 2025 | Brand | H1 2025 Deliveries (units) | H1 2024 Deliveries (units) | Year-over-Year Change (units) | Year-over-Year Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Snowy River | 1,247 | 1,234 | +13 | +1.1% | | Regent | 25 | 78 | -53 | -67.9% | | NEWGEN | 95 | 115 | -20 | -17.4% | | **Total** | **1,367** | **1,427** | **-60** | **-4.2%** | [Orders on Hand](index=5&type=section&id=Orders%20on%20Hand) As of June 30, 2025, the group's total RV orders on hand and contract value both increased year-over-year, primarily driven by a significant increase in Snowy River brand orders Comparison of RV Orders on Hand | Brand | Order Volume as of June 30, 2025 (units) | Contract Value as of June 30, 2025 (AUD) | Order Volume as of June 30, 2024 (units) | Contract Value as of June 30, 2024 (AUD) | | :--- | :--- | :--- | :--- | :--- | | Snowy River | 1,535 | 88,498,765.3 | 1,236 | 66,806,000 | | Regent | 17 | 1,108,581.2 | 77 | 4,924,000 | | NEWGEN | 61 | 3,428,319.7 | 158 | 8,973,000 | [Hybrid Travel Trailers](index=5&type=section&id=Hybrid%20Travel%20Trailers) In H1 2025, the Snowy River brand launched the SRH-Hybrid 2025 series of hybrid travel trailers in Australia and New Zealand, targeting the high-end off-road market with six models emphasizing cost-effectiveness, durability, advanced technology, and luxury - The Snowy River SRH-Hybrid 2025 series of hybrid travel trailers (**six models**) was officially launched in Australia and New Zealand in H1 2025[10](index=10&type=chunk) - This series targets the high-end off-road market, designed for families, couples, and solo travelers, offering **high cost-effectiveness, durability, advanced technology, and luxury**[10](index=10&type=chunk) - Technical features include an SRT-Range inspired chassis, SR-Explore suspension system, Pedders springs and shock absorbers, and an independent water and electricity supply system, ensuring off-road stability and off-grid endurance[10](index=10&type=chunk) [European Market Expansion](index=6&type=section&id=European%20Market%20Expansion) The group established a dedicated task force to actively pursue European market expansion, including reviewing manufacturing resources, screening acquisition targets, negotiating with dealers, and conducting market demand surveys, aiming for significant breakthroughs in key European markets within the next five years, focusing on Type B RVs and new energy RVs - A dedicated task force has been established to advance European market expansion, focusing on acquisition implementation, product finalization, EU certification, and customer development[12](index=12&type=chunk) - The task force has conducted a comprehensive review of European manufacturing resources, initially screened potential acquisition targets, and engaged in preliminary discussions with European dealers and RV rental providers[12](index=12&type=chunk) - Significant breakthroughs are anticipated in key European markets within the next five years, with **Type B RV products** as the entry point, and new energy RVs to be introduced when market opportunities mature[12](index=12&type=chunk) [Canadian Market Expansion](index=6&type=section&id=Canadian%20Market%20Expansion) The group initiated a collaboration project with Canadian partners to expand into the North American market in two phases, currently designing three RV prototypes compliant with Canadian regulations, registering brands, protecting intellectual property, and engaging local dealer networks - A collaboration project with Canadian partners has been initiated to expand into the North American market in two phases: RV prototype design and exhibition area planning, followed by exhibition promotion and brand implementation[13](index=13&type=chunk) - During the reporting period, design for **three RV prototype models** compliant with Canadian regulations was initiated, and exhibition scale, RV prototype layout, and marketing strategies were coordinated[13](index=13&type=chunk) - Canadian brand registration procedures and intellectual property protection measures have been initiated, with preliminary contact made with local dealer networks[13](index=13&type=chunk) [Continuing to Strengthen Our Leading Position in the Australian and New Zealand Markets](index=7&type=section&id=Continuing%20to%20Strengthen%20Our%20Leading%20Position%20in%20the%20Australian%20and%20New%20Zealand%20Markets) Australia and New Zealand remain the group's largest market and strategic cornerstone, where market leadership is continuously strengthened through expanded coverage, deepened product localization, enhanced after-sales service, and optimized dealer management, with future plans to deepen hybrid model strategy as a pivot for North American and European expansion - Australia and New Zealand are the group's **largest market** and a crucial cornerstone for its strategic internationalization process[14](index=14&type=chunk) - Market coverage is expanded through self-operated stores and dealer networks, while product localization, after-sales service systems, and dealer management mechanisms are enhanced to improve customer experience and brand reputation[14](index=14&type=chunk) - Continuous investment in R&D diversifies the product portfolio, including the launch of **hybrid and pop-top RV models** to meet market demand[14](index=14&type=chunk) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=8&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement presents the group's financial performance, including revenue, expenses, and profit for the period, reflecting a decline in profitability compared to the prior year Summary of Consolidated Statement of Profit or Loss and Other Comprehensive Income (Six Months Ended June 30) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 411,723 | 421,973 | | Cost of Sales | (290,094) | (287,070) | | Gross Profit | 121,629 | 134,903 | | Other Income / (Loss) | 17,585 | (2,667) | | Selling and Distribution Expenses | (52,766) | (32,184) | | Administrative Expenses | (31,577) | (35,605) | | Research and Development Expenses | (11,850) | (5,625) | | Reversal / (Provision) for Impairment Loss on Trade Receivables | 744 | (21) | | Operating Profit | 43,765 | 58,801 | | Finance Costs | (6,143) | (4,796) | | Profit Before Tax | 37,622 | 54,005 | | Income Tax | (6,625) | (13,575) | | Profit for the Period | 30,997 | 40,430 | | Profit Attributable to Equity Holders of the Company | 30,700 | 39,532 | | Basic and Diluted Earnings Per Share (RMB) | 0.03 | 0.05 | | Total Comprehensive Income for the Period | 28,101 | 39,870 | [Consolidated Statement of Financial Position](index=10&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) This statement provides a snapshot of the group's assets, liabilities, and equity as of the reporting date, showing changes in liquidity and capital structure Summary of Consolidated Statement of Financial Position (As of June 30, 2025) | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 19,697 | 19,782 | | Right-of-use Assets | 73,471 | 72,707 | | Intangible Assets | 211 | 237 | | Deferred Tax Assets | 29,778 | 23,774 | | **Current Assets** | | | | Inventories | 272,855 | 228,103 | | Trade and Other Receivables | 137,405 | 54,382 | | Prepayments | 92,452 | 28,479 | | Financial Assets at Fair Value Through Profit or Loss | 110,210 | — | | Restricted Cash | 182,755 | 103,144 | | Cash and Cash Equivalents | 24,949 | 29,263 | | **Current Liabilities** | | | | Trade and Other Payables | 377,052 | 314,757 | | Contract Liabilities | 11,134 | 12,276 | | Loans and Borrowings | 111,826 | 89,017 | | Lease Liabilities | 21,589 | 11,136 | | Current Tax | 23,732 | 18,451 | | Provisions | 3,603 | 3,699 | | Net Current Assets / (Liabilities) | 271,690 | (5,965) | | **Non-current Liabilities** | | | | Loans and Borrowings | 272 | 381 | | Lease Liabilities | 60,937 | 66,902 | | Provisions | 3,498 | 3,999 | | **Net Assets** | **330,140** | **39,253** | | Total Equity | 330,140 | 39,253 | [Notes to the Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures for the condensed consolidated financial statements, covering accounting policies, significant events, and financial instrument details [General Information](index=12&type=section&id=General%20Information) Newgonow RV Co., Ltd. was incorporated in the Cayman Islands on May 17, 2022, primarily engaged in RV manufacturing and export to Australia, with shares listed on the Hong Kong Stock Exchange on January 13, 2025 - The company was incorporated in the Cayman Islands on **May 17, 2022**, primarily engaged in manufacturing and exporting RVs to Australia, and selling them in Australia and New Zealand[20](index=20&type=chunk) - The company's shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on **January 13, 2025**[21](index=21&type=chunk) [Basis of Preparation](index=12&type=section&id=Basis%20of%20Preparation) This interim financial report is prepared in accordance with HKFRS 34 and HKEX Listing Rules, applying consistent accounting policies with the 2024 annual financial statements, and includes explanations for significant events and transactions affecting the group's financial position and performance - This interim financial report is prepared in accordance with the Listing Rules of the Hong Kong Stock Exchange and Hong Kong Accounting Standard 34 "Interim Financial Reporting"[22](index=22&type=chunk) - The basis of preparation is consistent with the accounting policies adopted in the 2024 annual financial statements, except for changes in accounting policies expected to be reflected in the 2025 annual financial statements[22](index=22&type=chunk) [Changes in Accounting Policies](index=13&type=section&id=Changes%20in%20Accounting%20Policies) The group applied amendments to HKAS 21 "The Effects of Changes in Foreign Exchange Rates—Lack of Exchangeability" during this period, which had no material impact on the interim report due to the absence of relevant foreign currency transactions, and no new accounting standards or interpretations not yet effective were applied - The group has applied the amendments to Hong Kong Accounting Standard 21 "The Effects of Changes in Foreign Exchange Rates—Lack of Exchangeability," but it had **no material impact** on this interim report[23](index=23&type=chunk) - No new accounting standards or interpretations not yet effective were applied during this accounting period[24](index=24&type=chunk) [Revenue](index=13&type=section&id=Revenue) The group's primary revenue source is the manufacturing and sale of RVs, with total revenue of RMB 411.7 million for the six months ended June 30, 2025, comprising RMB 367.6 million from RV sales, RMB 35.4 million from used RV sales, and RMB 8.8 million from other income - The group is primarily engaged in the manufacturing and sale of RVs[25](index=25&type=chunk) Revenue from Contracts with Customers by Major Product or Service Line | Product or Service Line | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Sale of RVs | 367,571 | 396,893 | | Sale of Used RVs | 35,359 | 23,396 | | Other | 8,793 | 1,684 | | **Total** | **411,723** | **421,973** | [Income Tax](index=14&type=section&id=Income%20Tax) For the six months ended June 30, 2025, the group's income tax expense was RMB 6.6 million, a 51.5% decrease from RMB 13.6 million in the prior year, primarily due to reduced profit Income Tax Expense | Tax Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current Tax - China Corporate Income Tax | 12,791 | 14,710 | | Current Tax - Australia Income Tax | — | 3,741 | | Deferred Tax - Temporary Differences Arising | (6,166) | (4,876) | | **Income Tax Expense** | **6,625** | **13,575** | [Earnings Per Share](index=14&type=section&id=Earnings%20Per%20Share) Basic and diluted earnings per share for the six months ended June 30, 2025, decreased to RMB 0.03 from RMB 0.05 in the prior year, based on profit attributable to equity holders and the weighted average number of ordinary shares, with no anti-dilutive effect from share options during the period Comparison of Earnings Per Share | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Profit Attributable to Ordinary Equity Holders of the Company (RMB) | 30,700,000 | 39,532,000 | | Weighted Average Number of Ordinary Shares (shares) | 942,762,000 | 720,000,000 | | Basic and Diluted Earnings Per Share (RMB) | 0.03 | 0.05 | - For the six months ended June 30, 2025, diluted earnings per share were the same as basic earnings per share, as unexercised share options under the share option scheme had an anti-dilutive effect[29](index=29&type=chunk) [Trade and Other Receivables](index=15&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables significantly increased to RMB 137.4 million from RMB 54.4 million on December 31, 2024, primarily due to new third-party loans and deposits, with all trade receivables expected to be recovered within one year Composition of Trade and Other Receivables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables, Net of Loss Allowance | 42,695 | 37,706 | | Value Added Tax and Goods and Services Tax Recoverable | 8,208 | 8,850 | | Loans to Third Parties | 42,846 | — | | Deposits | 29,294 | 1,109 | | Others | 14,362 | 6,717 | | **Total** | **137,405** | **54,382** | Aging Analysis of Trade Receivables | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 90 days | 39,208 | 25,869 | | Over 90 days but less than 180 days | 1,325 | 4,679 | | Over 180 days but less than 360 days | 711 | 6,600 | | Over 360 days | 1,451 | 558 | | **Total** | **42,695** | **37,706** | [Financial Assets at Fair Value Through Profit or Loss](index=15&type=section&id=Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As of June 30, 2025, the group recognized new wealth management products totaling RMB 110.2 million as financial assets at fair value through profit or loss, with no such assets on December 31, 2024 Financial Assets at Fair Value Through Profit or Loss | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Wealth Management Products | 110,210 | — | [Trade and Other Payables](index=16&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables increased to RMB 377.1 million from RMB 314.8 million on December 31, 2024, primarily driven by an increase in bills payable and trade payables to third parties, with most expected to be settled within one year Composition of Trade and Other Payables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Bills Payable | 79,373 | 53,247 | | Trade Payables to Related Parties | 2,877 | 7,131 | | Trade Payables to Third Parties | 237,765 | 182,834 | | Accrued Wages and Other Benefits | 22,460 | 19,713 | | Value Added Tax, Goods and Services Tax and Miscellaneous Taxes Payable | 14,399 | 10,767 | | Listing Expenses Payable | 834 | 26,375 | | Accrued Expenses | 8,218 | 7,304 | | Advances from Related Parties | 10,085 | 7,182 | | Other Payables | 1,041 | 204 | | **Total** | **377,052** | **314,757** | Aging Analysis of Trade Payables and Bills Payable | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 year | 221,629 | 242,581 | | 1 to 2 years | 98,068 | 613 | | 2 to 3 years | 318 | 18 | | **Total** | **320,015** | **243,212** | [Dividends](index=16&type=section&id=Dividends) Neither the company nor its subsidiaries paid or declared any dividends for the six months ended June 30, 2025, consistent with the prior year - For the six months ended June 30, 2025, neither the company nor its current subsidiaries paid or declared any dividends[33](index=33&type=chunk) [Management Discussion and Analysis](index=17&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the group's financial performance and position, highlighting key operational and financial trends, and discussing future outlook and strategies [Financial Analysis](index=17&type=section&id=Financial%20Analysis) The group experienced a decline in revenue and profit during the reporting period, primarily due to reduced RV sales and promotional pricing strategies, while other income significantly increased from exchange gains, sales and distribution expenses rose due to store expansion, R&D expenses grew substantially from new projects, and administrative expenses decreased due to reduced listing expenses [Revenue](index=17&type=section&id=Revenue) The group's total revenue decreased by 2.4% due to lower RV sales, despite a 30.2% increase in direct sales revenue and a 51.3% increase in used RV sales revenue Revenue Comparison | Revenue Category | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Change Percentage | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | 411.7 | 422.0 | -2.4% | Decrease in RV sales | | RV Sales Revenue | 367.6 | 396.9 | -7.4% | Decrease in RV sales | | Direct Sales Revenue | 188.0 | 144.4 | +30.2% | Increase in direct RV sales (610 units vs 438 units) | | Used RV Sales Revenue | 35.4 | 23.4 | +51.3% | Launch of used RV trade-in program | [Cost of Sales](index=17&type=section&id=Cost%20of%20Sales) Cost of sales remained relatively stable, primarily comprising raw material costs, employee costs, transportation and handling expenses, and indirect costs Cost of Sales Comparison | Metric | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Change Percentage | | :--- | :--- | :--- | | Cost of Sales | 290.1 | 287.1 | +1.0% | - Cost of sales remained relatively stable, primarily comprising raw material costs, employee costs, transportation and handling expenses, and indirect costs[35](index=35&type=chunk) [Gross Profit and Gross Margin](index=17&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Gross profit decreased by 9.9% due to lower RV sales, and gross margin declined by 2.5% primarily attributable to promotional pricing strategies for newly launched RVs Gross Profit and Gross Margin Comparison | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change Percentage | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Gross Profit (RMB million) | 121.6 | 134.9 | -9.9% | Decrease in RV sales | | Gross Margin | 29.5% | 32.0% | -2.5% | Promotional pricing strategy for newly launched RVs | [Other Income / (Loss)](index=18&type=section&id=Other%20Income%20%2F%20%28Loss%29) Other income significantly increased to RMB 17.6 million from a loss of RMB 2.7 million in the prior year, primarily due to foreign exchange gains from AUD to RMB fluctuations Other Income / (Loss) Comparison | Metric | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Primary Reason | | :--- | :--- | :--- | :--- | | Other Income / (Loss) | 17.6 | (2.7) | Foreign exchange gains from AUD to RMB fluctuations | [Selling and Distribution Expenses](index=18&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses increased by 64.0% due to the addition of two self-operated stores and corresponding advertising and promotional expenses Selling and Distribution Expenses Comparison | Metric | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Change Percentage | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 52.8 | 32.2 | +64.0% | Addition of two self-operated stores and increased advertising and promotional expenses | [Administrative Expenses](index=18&type=section&id=Administrative%20Expenses) Administrative expenses decreased by 11.2% due to the absence of one-off listing expenses, despite an increase in employee costs from a larger headcount Administrative Expenses Comparison | Metric | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Change Percentage | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Administrative Expenses | 31.6 | 35.6 | -11.2% | Absence of one-off listing expenses, partially offset by increased employee costs due to higher headcount | [Research and Development Expenses](index=18&type=section&id=Research%20and%20Development%20Expenses) Research and development expenses significantly increased by 112.5% due to the initiation of more new travel trailer and electric RV R&D projects Research and Development Expenses Comparison | Metric | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Change Percentage | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Research and Development Expenses | 11.9 | 5.6 | +112.5% | Initiation of more new travel trailer and electric RV R&D projects | [Reversal / (Provision) for Impairment Loss on Trade Receivables](index=19&type=section&id=Reversal%20%2F%20%28Provision%29%20for%20Impairment%20Loss%20on%20Trade%20Receivables) A reversal of impairment loss on trade receivables of RMB 0.744 million was recorded, compared to a provision of RMB 0.021 million in the prior year, primarily due to a reduction in long-aged trade receivables Reversal / (Provision) for Impairment Loss on Trade Receivables Comparison | Metric | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | Primary Reason | | :--- | :--- | :--- | :--- | | Reversal / (Provision) for Impairment Loss | 744 | (21) | Reduction in long-aged trade receivables | [Finance Costs](index=19&type=section&id=Finance%20Costs) Finance costs increased by 27.1% due to newly obtained bank borrowings Finance Costs Comparison | Metric | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Change Percentage | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Finance Costs | 6.1 | 4.8 | +27.1% | Newly obtained bank borrowings | [Income Tax](index=19&type=section&id=Income%20Tax) Income tax decreased by 51.5% due to a reduction in profit Income Tax Comparison | Metric | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Change Percentage | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Income Tax | 6.6 | 13.6 | -51.5% | Decrease in profit | [Profit for the Period](index=19&type=section&id=Profit%20for%20the%20Period) Profit for the period decreased by RMB 9.4 million to RMB 31.0 million from RMB 40.4 million in the prior year Profit for the Period Comparison | Metric | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Profit for the Period | 31.0 | 40.4 | -9.4 | [Liquidity and Capital Resources](index=19&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the group's net current assets turned positive, primarily benefiting from global offering proceeds, while total loans and borrowings increased, and the gearing ratio remained positive, with the company regularly monitoring liquidity needs and having no significant capital commitments or future major investment plans [Liquidity and Capital Resources](index=19&type=section&id=Liquidity%20and%20Capital%20Resources) The group's net current assets turned positive, primarily due to the proceeds from the global offering Net Current Assets Comparison | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Primary Reason | | :--- | :--- | :--- | :--- | | Net Current Assets | 271.7 | (6.0) | Receipt of global offering proceeds | [Loans and Borrowings](index=19&type=section&id=Loans%20and%20Borrowings) Total loans and borrowings increased to RMB 112.1 million, comprising secured loans from financing partners, unsecured short-term bank loans, and secured short-term bank loans Total Loans and Borrowings Comparison | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Total Loans and Borrowings | 112.1 | 89.4 | - Loans and borrowings primarily include: **RMB 65.2 million** in secured loans and borrowings from financing partners; **RMB 9.9 million** in unsecured short-term bank loans from commercial banks; and **RMB 36.7 million** in secured short-term bank loans from commercial banks[47](index=47&type=chunk) [Gearing Ratio](index=20&type=section&id=Gearing%20Ratio) The group's gearing ratio remained positive as of June 30, 2025, and December 31, 2024, calculated as net debt divided by capital plus net debt - As of June 30, 2025, and December 31, 2024, the group's gearing ratio was **positive**[48](index=48&type=chunk) - The gearing ratio is calculated as net debt divided by capital plus net debt, where net debt includes loans and borrowings, trade and other payables, and lease liabilities, less cash and cash equivalents, and restricted cash[48](index=48&type=chunk) [Inventory Policy](index=20&type=section&id=Inventory%20Policy) The group's policy is to regularly monitor liquidity needs, ensuring sufficient cash reserves and committed financing facilities to meet both short-term and long-term liquidity requirements - The group's policy is to regularly monitor liquidity needs, ensuring sufficient cash reserves and adequate committed financing facilities to meet both short-term and long-term liquidity requirements[49](index=49&type=chunk) [Restricted Cash and Pledged Assets](index=20&type=section&id=Restricted%20Cash%20and%20Pledged%20Assets) Restricted cash primarily serves as lease deposits and collateral for loans, borrowings, and bills payable Restricted Cash Comparison | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Restricted Bank Deposits | 182.8 | 103.1 | - Restricted cash is primarily used for lease deposits and pledged as collateral for loans and borrowings, as well as bills payable[50](index=50&type=chunk) [Future Plans for Material Investments and Capital Assets](index=20&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) As of June 30, 2025, the group had no specific plans for material investments and acquisitions of capital assets - As of June 30, 2025, the group had **no specific plans** for material investments and acquisitions of capital assets[51](index=51&type=chunk) [Capital Commitments and Capital Expenditures](index=20&type=section&id=Capital%20Commitments%20and%20Capital%20Expenditures) As of June 30, 2025, the group had no significant capital commitments, with capital expenditures for the purchase of property, plant, and equipment decreasing to RMB 2.3 million - As of June 30, 2025, the group had **no significant capital commitments**[52](index=52&type=chunk) Capital Expenditures Comparison | Metric | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | | :--- | :--- | :--- | | Capital Expenditures (Purchase of Property, Plant and Equipment) | 2.3 | 3.0 | [Contingent Liabilities and Guarantees](index=20&type=section&id=Contingent%20Liabilities%20and%20Guarantees) The maximum amount of guarantees issued increased to RMB 30.7 million, and the company utilized financial instruments like foreign exchange swaps to mitigate foreign currency risks Maximum Amount of Guarantees Issued Comparison | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Maximum Amount of Guarantees Issued | 30.7 | 24.8 | - The company utilized financial instruments such as foreign exchange swaps to mitigate foreign currency risks during the reporting period[54](index=54&type=chunk) [Material Investments, Significant Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=21&type=section&id=Material%20Investments%2C%20Significant%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) For the six months ended June 30, 2025, the company did not undertake any significant acquisitions or disposals of subsidiaries, associates, or joint ventures, nor any other material investments (valued at 5% or more of total assets) - For the six months ended June 30, 2025, the company did not undertake any significant acquisitions or disposals of subsidiaries, associates, or joint ventures[55](index=55&type=chunk) - Apart from disclosable transactions, the company did not have any material investments (valued at 5% or more of total assets) during the reporting period[55](index=55&type=chunk) [Employees](index=21&type=section&id=Employees) The group's total headcount increased to 803, with a majority in production and supply chain, and maintains a stable, proactive workforce through training and a comprehensive compensation structure Employee Headcount and Functional Distribution | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Number of Employees | 803 | 722 | | Number of Employees in China | 565 | - | | Number of Employees in Australia | 238 | - | | Function | Number of Employees | Percentage of Total Employees | | :--- | :--- | :--- | | Production and Supply Chain | 591 | 73.6% | | Sales and Marketing | 55 | 6.9% | | General and Administrative Support | 98 | 12.2% | | Product Development and Technology | 59 | 7.4% | | **Total** | **803** | **100.0%** | - The group believes that maintaining a stable and proactive workforce is key to business success and regularly invests in employee training[57](index=57&type=chunk) - Employee compensation structure includes salaries, benefits, and bonuses, with standard employee benefit plans provided in accordance with local laws and regulations in China and Australia[58](index=58&type=chunk) [Purchase, Redemption or Sale of Listed Securities](index=22&type=section&id=Purchase%2C%20Redemption%20or%20Sale%20of%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities from the listing date up to June 30, 2025, and no treasury shares were held - From the listing date up to June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[59](index=59&type=chunk) - As of June 30, 2025, the company held no treasury shares[59](index=59&type=chunk) [Use of Net Proceeds from Listing](index=22&type=section&id=Use%20of%20Net%20Proceeds%20from%20Listing) The net proceeds from the global offering were approximately HKD 253.4 million, with HKD 16.9 million utilized and HKD 236.5 million unutilized as of the announcement date, and the board resolved to change the use of unutilized proceeds, placing idle funds into short-term interest-bearing deposits or other short-term wealth management products - The net proceeds from the global offering were approximately **HKD 253.4 million**, with approximately **HKD 16.9 million** utilized and approximately **HKD 236.5 million** unutilized as of the announcement date[60](index=60&type=chunk) - The board resolved to change the use of unutilized net proceeds and to place idle funds into short-term interest-bearing deposits or other short-term wealth management products[61](index=61&type=chunk) Comparison of Original and Revised Use of Net Proceeds from Listing (HKD million) | Purpose | Original Total | Revised Total | First Year Post-Listing (Revised) | Second Year Post-Listing (Revised) | Third Year Post-Listing (Revised) | | :--- | :--- | :--- | :--- | :--- | :--- | | Establishment of New Production Base and Upgrade of Existing Production Facilities | 160.4 | 65.4 | — | 48.4 | 17.0 | | — Construction of New Production Base in Zhejiang, China | 152.0 | 57.0 | — | 40.0 | 17.0 | | — Upgrade of Existing Production Facilities | 8.4 | 8.4 | — | 8.4 | — | | Strengthening Sales and Distribution Network | 42.4 | 102.5 | 2.9 | 54.8 | 44.8 | | — Opening New Self-operated and/or Joint Venture Stores | 8.4 | 8.5 | 2.9 | 2.8 | 2.8 | | — Potential Acquisition of Third-party Offline Stores | 34.0 | 94.0 | — | 52.0 | 42.0 | | Product Research and Development | 25.3 | 60.2 | 5.5 | 26.6 | 28.1 | | Working Capital and General Corporate Purposes | 25.3 | 25.3 | 8.5 | 8.5 | 8.5 | | **Total** | **253.4** | **253.4** | **16.9** | **138.3** | **98.4** | [Compliance with Corporate Governance Code](index=23&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company generally complied with the Corporate Governance Code, with a noted deviation regarding the combined roles of Chairman and CEO, and addressed a disclosable transaction that constituted a temporary deviation from the use of proceeds [Deviation from Code Provision C.2.1 of the Corporate Governance Code](index=24&type=section&id=Deviation%20from%20Code%20Provision%20C.2.1%20of%20the%20Corporate%20Governance%20Code) The company deviates from Code Provision C.2.1 of the Corporate Governance Code, with Mr. Miao Xuezhong serving as both Chairman and Chief Executive Officer, an arrangement the board believes fosters consistent internal leadership and efficient strategic planning without compromising power balance - The roles of Chairman and Chief Executive Officer are combined and held by **Mr. Miao Xuezhong**, deviating from Code Provision C.2.1 of the Corporate Governance Code[64](index=64&type=chunk) - The board believes this arrangement ensures consistent internal leadership and enables more effective and efficient overall strategic planning for the group[64](index=64&type=chunk) [Disclosable Transactions](index=24&type=section&id=Disclosable%20Transactions) Regent RV PTY LTD, a wholly-owned subsidiary, subscribed to USD bond-linked notes and the Apollo Multi-Asset Growth Fund in February 2025, constituting disclosable transactions that were not timely notified or announced, and represented a temporary deviation from the use of proceeds, attributed to unintentional oversight and misunderstanding of listing rules, with redemption notices issued and no expected losses - Regent RV PTY LTD, a wholly-owned subsidiary of the company, subscribed to **USD 9 million** in USD bond-linked notes and **USD 6.4 million** in the Apollo Multi-Asset Growth Fund on February 11 and 12, 2025, respectively[65](index=65&type=chunk) - These subscriptions constituted disclosable transactions, which the company failed to timely notify or announce, and represented a temporary deviation from the original intended use of net proceeds as stated in the prospectus[65](index=65&type=chunk) - The company has issued a notice to redeem the fund and decided to redeem the notes at maturity (February 11, 2026), with **no losses expected**[66](index=66&type=chunk) [Standard of Conduct for Directors' Securities Transactions](index=25&type=section&id=Standard%20of%20Conduct%20for%20Directors'%20Securities%20Transactions) The company adopted the Model Code for Securities Transactions by Directors of Listed Issuers as its code of conduct for directors' securities dealings, and all directors confirmed full compliance from the listing date up to June 30, 2025 - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules as its code of conduct for directors' dealings in the company's securities[68](index=68&type=chunk) - All directors confirmed full compliance with all relevant provisions of the Model Code from the listing date up to June 30, 2025[68](index=68&type=chunk) [Audit Committee](index=25&type=section&id=Audit%20Committee) The company established an Audit Committee comprising three independent non-executive directors, responsible for reviewing and overseeing financial reporting, risk management, and internal control systems, and confirmed that the unaudited interim consolidated financial statements for the six months ended June 30, 2025, comply with accounting standards - The Audit Committee comprises three independent non-executive directors: **Ms. Wu Yongqian** (Chairperson), **Mr. Yu Mingyang**, and **Ms. He Jie**[69](index=69&type=chunk) - Its primary responsibilities include reviewing and overseeing the group's financial reporting process, risk management, and internal control systems, and reviewing financial information[69](index=69&type=chunk) - The Audit Committee has reviewed the unaudited interim consolidated financial statements for the six months ended June 30, 2025, and believes they are prepared in compliance with applicable accounting standards and requirements[69](index=69&type=chunk) [Material Events After the Reporting Period](index=25&type=section&id=Material%20Events%20After%20the%20Reporting%20Period) On August 29, 2025, the company published announcements regarding changes in use of proceeds, temporary deviation from use of proceeds, disclosable transactions, and revisions to existing annual caps and proposed new annual caps for continuing connected transactions, with no other material events affecting the company since June 30, 2025 - On **August 29, 2025**, the company published announcements concerning (i) changes in the use of proceeds; (ii) temporary deviation from the use of proceeds; and (iii) disclosable transactions, as well as announcements regarding revisions to existing annual caps and proposed new annual caps for continuing connected transactions[70](index=70&type=chunk) - Save for the aforementioned matters, no other material events affecting the company have occurred from June 30, 2025, up to the date of this announcement[71](index=71&type=chunk) [Dividends](index=26&type=section&id=Dividends) The board does not recommend the declaration of any interim dividend for the six months ended June 30, 2025, consistent with no dividends paid or declared for the prior corresponding period - For the six months ended June 30, 2025, the board does not recommend the declaration of any interim dividend[72](index=72&type=chunk) - For the six months ended June 30, 2024, no dividends were paid or declared[72](index=72&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=26&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This results announcement has been published on the HKEXnews website and the company's website, and the interim report for the six months ended June 30, 2025, will be published on the same websites and dispatched to shareholders as appropriate - This results announcement has been published on the HKEXnews website (www.hkexnews.hk) and the company's website (www.newgonowrv.hk)[73](index=73&type=chunk) - The company's interim report for the six months ended June 30, 2025, will be published on the aforementioned websites and dispatched to the company's shareholders as appropriate[73](index=73&type=chunk) [By Order of the Board](index=26&type=section&id=By%20Order%20of%20the%20Board) This announcement is issued by Mr. Miao Xuezhong, Executive Director, Chairman, and Chief Executive Officer, on behalf of the board, whose members include executive and independent non-executive directors - This announcement is issued by **Mr. Miao Xuezhong**, Executive Director, Chairman, and Chief Executive Officer, on behalf of the board[74](index=74&type=chunk) - As of the date of this announcement, the board members include Executive Directors Mr. Miao Xuezhong, Mr. Liu Tao, Ms. Liu Qin, and Mr. Andrew Robert Crank; and Independent Non-executive Directors Mr. Yu Mingyang, Ms. He Jie, and Ms. Wu Yongqian[74](index=74&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不 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 就 因 本 公 佈 全 部 或 任 何 部 分 內 容 而 產 生 或 因 倚 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 HONG WEI (ASIA) HOLDINGS COMPANY LIMITED 8191 本 公 佈 列 載 本 公 司 該 時 段 之 財 務 摘 要 及 二 零 二 五 年 中 期 報 告（「報 告」）全 文，符 合香港聯合交易所有限公司GEM證 券 上 市 規 則（「GEM上市規則」）中 有 關 該 時 段 初 步 財 務 業 績 公 佈 附 載 之 資 料 之 要 求。 載有GEM上市規則規定資料之本公司報告之印刷本將寄發予本公司股東，並可於 香港聯合交易所有限公司網站www.hkexnews.hk及本公司網站www.hongweiasia.com 內 查 閱。 承董事會命 鴻 偉（亞 洲）控 股 有 限 公 司 主 席 黃長樂 香 港，二 零 二 五 年 八 月 三 十 一 ...

（於開曼群島註冊成立的有限公司） （股份代號：1961） 截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月 的 中 期 業 績 公 告 多 牛 科 技 國 際（開 曼）集 團 有 限 公 司（「本 公 司」）董 事（「董 事」）會（「董 事 會」） 宣 佈 本 公 司 及 其 附 屬 公 司（統 稱「本 集 團」）截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月（「二 零 二 五 年 上 半 年」）的 未 經 審 核 中 期 簡 明 合 併 業 績，連 同 二 零 二 四 年 同 期 的 比 較 數 字。 香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 告 之 內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示 概 不 就 因 本 公 告 全 部 或 任 何 部 份 內 容 而 產 生 或 因 依 賴 該 等 內 容 而 引 致 之 任 何 損 失 承 擔 任 何 責 任。 Infinities Technology International (Cayman) ...

[2025 Interim Results Announcement](index=1&type=section&id=2025%20Interim%20Results%20Announcement) [Company Information](index=1&type=section&id=Company%20Information) The report presents the unaudited condensed consolidated financial statements of New City Development Group Limited for the six months ended June 30, 2025 - Company Name: **New City Development Group Limited** (NEW CITY DEVELOPMENT GROUP LIMITED)[2](index=2&type=chunk) - Stock Code: **0456**[2](index=2&type=chunk) - Reporting Period: Six months ended **June 30, 2025** (Interim Results)[2](index=2&type=chunk) [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the group's condensed consolidated financial statements, including income, comprehensive income, financial position, equity changes, and cash flows [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the Group's revenue significantly decreased, leading to reduced gross profit, an expanded operating loss, and a wider loss for the period, while basic loss per share narrowed Condensed Consolidated Statement of Profit or Loss Key Data (For the six months ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 28,312 | 56,461 | -49.85% | | Cost of sales and services | (2,750) | (22,357) | -87.69% | | Gross profit | 25,562 | 34,104 | -25.05% | | Other income | 435 | 4,643 | -90.64% | | Net other gains and losses | (7,546) | 1,735 | -535.04% | | Administrative and other operating expenses | (31,467) | (46,861) | -32.85% | | Operating loss | (13,016) | (6,379) | 104.06% | | Finance costs | (2,254) | (5,361) | -57.99% | | Loss before tax | (15,270) | (11,740) | 30.07% | | Loss for the period | (15,270) | (11,740) | 30.07% | | Attributable to owners of the Company | (5,409) | (10,727) | -49.58% | | Attributable to non-controlling interests | (9,861) | (1,013) | 873.45% | | Basic loss per share (HK cents) | (3.97) | (9.15) | -56.50% | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group recorded a total comprehensive loss of HKD 53,073 thousand, a reduction from the prior year, mainly due to decreased exchange differences on overseas operations Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data (For the six months ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Loss for the period | (15,270) | (11,740) | 30.07% | | Exchange differences on translation of overseas operations | (37,803) | (49,835) | -24.14% | | Total comprehensive income for the period | (53,073) | (61,575) | -13.73% | | Attributable to owners of the Company | (45,726) | (45,199) | 1.17% | | Attributable to non-controlling interests | (7,347) | (16,376) | -55.13% | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets and liabilities increased, net current assets grew significantly, but net assets decreased due to changes in borrowing structure and reduced equity reserves Condensed Consolidated Statement of Financial Position Key Data | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 733,074 | 723,694 | 1.29% | | Current assets | 920,070 | 886,103 | 3.83% | | Current liabilities | 338,448 | 666,974 | -49.27% | | Net current assets | 581,622 | 219,129 | 165.42% | | Total assets less current liabilities | 1,314,696 | 942,823 | 39.44% | | Non-current liabilities | 1,087,535 | 669,415 | 62.46% | | Net assets | 227,161 | 273,408 | -16.99% | | Total equity | 227,161 | 273,408 | -16.99% | | Share capital | 30,274 | 23,449 | 29.11% | | Reserves | 258,767 | 304,492 | -15.02% | | Non-controlling interests | (61,880) | (54,533) | 13.47% | - Current liabilities significantly decreased, primarily due to adjustments in borrowing structure, with borrowings due within one year falling from **HKD 420,878 thousand** to **HKD 21,821 thousand**[5](index=5&type=chunk) - Non-current liabilities significantly increased, mainly due to the portion of borrowings due in the second to fifth years rising from **HKD 123,037 thousand** to **HKD 662,462 thousand**[6](index=6&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, the Group's total equity decreased from HKD 273,408 thousand on January 1, 2025, to HKD 227,161 thousand, primarily due to comprehensive loss for the period and exchange reserve movements, despite new share issuance Condensed Consolidated Statement of Changes in Equity Key Data (For the six months ended June 30) | Indicator | June 30, 2025 (HKD thousands) | January 1, 2025 (HKD thousands) | Change (HKD thousands) | | :--- | :--- | :--- | :--- | | Share capital | 30,274 | 23,449 | 6,825 | | Share premium | 600,011 | 600,011 | 0 | | Contributed surplus | 4,755 | 4,755 | 0 | | Exchange reserve | (131,412) | (125,506) | (5,906) | | Fair value reserve | – | – | 0 | | Statutory reserve | 18,604 | 18,604 | 0 | | Retained profits | (233,191) | (193,372) | (39,819) | | Total attributable to owners of the Company | 289,039 | 327,941 | (38,902) | | Non-controlling interests | (61,880) | (54,533) | (7,347) | | Total equity | 227,161 | 273,408 | (46,247) | - Net proceeds of approximately **HKD 6,825 thousand** were raised from new share issuance for general working capital[7](index=7&type=chunk) - Total comprehensive loss for the period was **HKD 53,072 thousand**, negatively impacting equity[7](index=7&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash from operating activities significantly decreased, net cash used in investing activities slightly increased, and net cash used in financing activities substantially reduced, leading to a smaller net increase in cash and cash equivalents Condensed Consolidated Statement of Cash Flows Key Data (For the six months ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net cash from operating activities | 9,167 | 57,842 | -84.15% | | Net cash used in investing activities | (654) | (466) | 40.34% | | Net cash used in financing activities | (2,727) | (19,436) | -85.97% | | Net increase in cash and cash equivalents | 5,786 | 37,939 | -84.75% | | Cash and cash equivalents at June 30 | 10,105 | 9,518 | 6.17% | - Net cash used in financing activities significantly decreased, primarily due to interest paid falling from **HKD 16,686 thousand** in 2024 to **zero** in 2025[8](index=8&type=chunk) [Notes to the Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes on the unaudited condensed consolidated financial statements, covering company information, basis of preparation, new accounting standards, and segment information [Company Information](index=8&type=section&id=Company%20Information) The Company, incorporated in the Cayman Islands, primarily engages in property development and investment, and retail and consumer-related businesses in China, with interim financial statements reviewed by the audit committee - The Company was incorporated in the Cayman Islands on **August 10, 1998**[9](index=9&type=chunk) - The Group's principal activities are property development and investment in China, and retail and consumer-related businesses[9](index=9&type=chunk) - The condensed consolidated financial statements are unaudited but have been reviewed by the Audit Committee and approved for publication by the Board[9](index=9&type=chunk) [Basis of Preparation](index=8&type=section&id=Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in accordance with HKAS 34 "Interim Financial Reporting" and the disclosure requirements of the HKEX Listing Rules - The basis of preparation follows **HKAS 34 "Interim Financial Reporting"** and the **HKEX Listing Rules**[10](index=10&type=chunk) [Adoption of New and Revised Hong Kong Financial Reporting Standards](index=8&type=section&id=Adoption%20of%20New%20and%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards) The Group first applied the amendments to HKAS 21 "Lack of Exchangeability" during this period, which had no significant impact on its financial position, performance, or disclosures - The amendments to **HKAS 21 "Lack of Exchangeability"** were first applied during this period[11](index=11&type=chunk) - The amendments had no significant impact on the Group's financial position and performance for the current and prior periods[11](index=11&type=chunk) [Operating Segment Information](index=9&type=section&id=Operating%20Segment%20Information) The Group has two reportable segments: property development and investment, and retail and consumer-related businesses, with the former contributing all revenue and segment profit in H1 2025 - The Group has two reportable segments: **property development and investment**, and **retail and consumer-related businesses**[12](index=12&type=chunk) Reportable Segment Profit or Loss and Assets and Liabilities (For the six months ended June 30) | Indicator | Property Development and Investment (HKD thousands) | Retail and Consumer-Related Businesses (HKD thousands) | Total (HKD thousands) | | :--- | :--- | :--- | :--- | | **H1 2025** | | | | | Revenue from external customers | 28,312 | – | 28,312 | | Segment profit | 25,562 | – | 25,562 | | Segment assets (June 30, 2025) | 1,148,460 | 11,515 | 1,159,975 | | Segment liabilities (June 30, 2025) | 889,656 | 8,033 | 897,689 | | **H1 2024** | | | | | Revenue from external customers | 30,065 | 26,396 | 56,461 | | Segment profit | 15,732 | 18,372 | 34,104 | | Segment assets (December 31, 2024) | 1,444,790 | 34,771 | 1,479,561 | | Segment liabilities (December 31, 2024) | 872,266 | 7,880 | 880,146 | - The Group's revenue from external customers and over **90%** of non-current assets are located in China[15](index=15&type=chunk) [Revenue](index=11&type=section&id=Revenue) For the six months ended June 30, 2025, the Group's revenue was entirely from rental income and related management services, unlike the prior year which also included sales from retail and consumer-related businesses in Mainland China Revenue Analysis (For the six months ended June 30) | Revenue Source | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Rental income and related management service income | 28,312 | 30,065 | | Sales from retail and consumer-related businesses in Mainland China | – | 26,396 | | **Total** | **28,312** | **56,461** | [Other Income](index=11&type=section&id=Other%20Income) For the six months ended June 30, 2025, other income significantly decreased, primarily due to a large amount of other income in the prior period, with only interest income in the current period Other Income Analysis (For the six months ended June 30) | Income Source | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Interest income | 435 | 19 | | Other | – | 4,624 | | **Total** | **435** | **4,643** | [Net Other Gains and Losses](index=12&type=section&id=Net%20Other%20Gains%20and%20Losses) For the six months ended June 30, 2025, the Group recorded a net other loss of HKD 7,546 thousand, mainly due to fair value losses on financial assets and net foreign exchange losses Net Other Gains and Losses (For the six months ended June 30) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Fair value (loss) / gain on financial assets | (12,709) | 3,235 | | Net foreign exchange loss | 5,163 | (1,500) | | **Total** | **(7,546)** | **1,735** | [Finance Costs](index=12&type=section&id=Finance%20Costs) For the six months ended June 30, 2025, finance costs significantly decreased, primarily due to reduced interest expenses on bank borrowings Finance Costs Analysis (For the six months ended June 30) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Interest on bank borrowings | 2,252 | 5,356 | | Interest on lease liabilities | 2 | 5 | | **Total** | **2,254** | **5,361** | [Income Tax Expense](index=12&type=section&id=Income%20Tax%20Expense) The Group incurred no assessable profits in Hong Kong or Mainland China, resulting in no income tax expense for both the current and prior periods - The Group generated no assessable profits in Hong Kong and China, hence no income tax expense[19](index=19&type=chunk) [Loss for the Period](index=13&type=section&id=Loss%20for%20the%20Period) The loss for the period was primarily impacted by depreciation of property, plant and equipment, and right-of-use assets Loss for the Period Deductions (For the six months ended June 30) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 2,114 | 1,833 | | Depreciation of right-of-use assets | – | 3,141 | [Dividends](index=13&type=section&id=Dividends) The Board does not recommend an interim dividend for the period, consistent with the prior year - The Board does not recommend an interim dividend (2024: **nil**)[21](index=21&type=chunk) [Loss Per Share](index=13&type=section&id=Loss%20Per%20Share) For the six months ended June 30, 2025, basic loss per share was 3.97 HK cents, narrowing from 9.15 HK cents in the prior year, mainly due to reduced loss attributable to owners and an increased weighted average number of ordinary shares Loss Per Share Calculation (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Loss attributable to owners of the Company (HKD thousands) | (5,409) | (10,727) | | Weighted average number of ordinary shares for basic loss per share | 138,245,044 | 117,245,044 | | Basic loss per share (HK cents) | (3.97) | (9.15) | - Diluted loss per share is the same as basic loss per share as there were no potential dilutive events[25](index=25&type=chunk) [Property, Plant and Equipment](index=14&type=section&id=Property%2C%20Plant%20and%20Equipment) For the six months ended June 30, 2025, the Group's acquisitions of property, plant and equipment amounted to approximately HKD 25,329 thousand, a significant decrease from the prior year Property, Plant and Equipment Acquisitions (For the six months ended June 30) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Acquisitions of property, plant and equipment | 25,329 | 75,383 | [Investment Properties](index=14&type=section&id=Investment%20Properties) As of June 30, 2025, the Group's total carrying value of investment properties increased to HKD 664,567 thousand, primarily comprising properties in Guangzhou and Luoyang, with the latter's land use change application confirmed Investment Properties Carrying Value (As of June 30) | Property Type | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Investment properties in Guangzhou (fair value) | 596,819 | 585,362 | | Investment properties in Luoyang (cost) | 67,748 | 66,447 | | **Total Carrying Value** | **664,567** | **651,809** | - Guangzhou Property One and Guangzhou Property Two are both pledged for bank borrowings[28](index=28&type=chunk) - The application for changing the land use of Luoyang Property to commercial and residential mixed-use has been confirmed by the local government, awaiting official project commencement approvals[29](index=29&type=chunk)[30](index=30&type=chunk) [Guangzhou Property One](index=15&type=section&id=Guangzhou%20Property%20One) Guangzhou Property One, accounted for at fair value, is pledged for bank borrowings and is subject to government acquisition, with compensation negotiations ongoing - Guangzhou Property One is pledged for bank borrowings, with a carrying value of approximately **HKD 537,310 thousand**[28](index=28&type=chunk) - Guangzhou Property One has been included in the government's new central axis Haizhu area urban renewal project acquisition scope, with compensation negotiations underway[28](index=28&type=chunk) [Guangzhou Property Two](index=15&type=section&id=Guangzhou%20Property%20Two) Guangzhou Property Two, accounted for at fair value, is pledged for bank borrowings and leased out under operating leases for rental income - Guangzhou Property Two is pledged for bank borrowings, with a carrying value of approximately **HKD 59,509 thousand**[28](index=28&type=chunk) [Luoyang Property](index=15&type=section&id=Luoyang%20Property) Construction of Luoyang Property was delayed due to land policy changes; the Group successfully applied for a land use change to commercial and residential mixed-use and is actively communicating with government departments for project commencement approval - Luoyang Property construction was delayed; an application to change the project's land use to commercial and residential mixed-use has been submitted to the local government[28](index=28&type=chunk)[29](index=29&type=chunk) - The public consultation period for the land use change has expired, and planning conditions have been confirmed[30](index=30&type=chunk) - Luoyang Property is pledged for bank borrowings, with a carrying value of approximately **HKD 67,748 thousand**[30](index=30&type=chunk) [Financial Assets at Fair Value Through Profit or Loss](index=16&type=section&id=Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As of June 30, 2025, the Group's financial assets at fair value through profit or loss primarily consisted of investments in listed company shares, which experienced a decrease in market value Financial Assets at Fair Value Through Profit or Loss (HKD thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Investments in listed company shares, market value in Taiwan | 52,994 | 61,866 | [Prepayments, Deposits and Other Receivables](index=16&type=section&id=Prepayments%2C%20Deposits%20and%20Other%20Receivables) As of June 30, 2025, the total amount of prepayments, deposits, and other receivables increased, mainly due to the growth in other receivables Prepayments, Deposits and Other Receivables (HKD thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Prepayments | 334,763 | 331,542 | | Deposits | 20,995 | 20,993 | | Other receivables (net of impairment allowance) | 63,450 | 35,559 | | **Total Current Portion** | **398,213** | **367,101** | - Prepayments for Luoyang Property amounted to approximately **HKD 6,905 thousand**, and for Zhuhai Property approximately **HKD 315,161 thousand**[34](index=34&type=chunk) - A deposit of **HKD 20,000 thousand** was paid to New Century International Trade (Beijing) Co., Ltd. for due diligence on exploring project investment opportunities[34](index=34&type=chunk) [Borrowings](index=18&type=section&id=Borrowings) As of June 30, 2025, the Group's total borrowings slightly increased, but the current portion significantly decreased while the non-current portion substantially increased, reflecting a shift towards long-term borrowing structure and extended maturity dates for several bank loans Borrowings Analysis (HKD thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Bank Loan One | 397,206 | 391,947 | | Bank Loan Two | 28,839 | 28,286 | | Bank Loan Three | 258,238 | 253,818 | | **Total** | **684,283** | **674,051** | | Current portion (within one year or on demand) | 21,821 | 420,878 | | Non-current portion (second to fifth year) | 662,462 | 123,037 | | Non-current portion (over five years) | – | 130,136 | - Maturity dates for several bank loans have been extended, such as Guangzhou Bank loans extended to **November 20, 2026**, and Guangzhou Rural Commercial Bank loans advanced to **December 20, 2027**, and **May 20, 2027**[35](index=35&type=chunk)[36](index=36&type=chunk) - Multiple borrowings are secured by properties and equity interests, and guaranteed by related parties and directors[35](index=35&type=chunk)[36](index=36&type=chunk) [Bank Loan One (Guangzhou Bank Loan)](index=18&type=section&id=Bank%20Loan%20One%20(Guangzhou%20Bank%20Loan)) Guangzhou Bank Loan, totaling approximately HKD 397,206 thousand, is secured by Luoyang Property, Zhuhai Property, and subsidiary shares, guaranteed by related parties and individuals, with maturity extended to November 20, 2026 - Guangzhou Bank Loan is secured by legal charges over Luoyang Property, Zhuhai Property, and the entire issued share capital of Zhuhai Tengshun and Luoyang Wanheng[35](index=35&type=chunk) - The loan is guaranteed by Guangdong Changliu, Guangdong Changyang, and non-controlling shareholders, and personally guaranteed by Mr. Han and others[35](index=35&type=chunk) - Maturity dates for several Guangzhou Bank loans have been extended to **November 20, 2026**[35](index=35&type=chunk)[36](index=36&type=chunk) [Bank Loan Two (Guangzhou Rural Commercial Bank Loan)](index=19&type=section&id=Bank%20Loan%20Two%20(Guangzhou%20Rural%20Commercial%20Bank%20Loan)) Guangzhou Rural Commercial Bank Loan, totaling approximately HKD 28,839 thousand, is secured by Guangzhou Property Two and subsidiary equity interests, guaranteed by related parties and individuals, with full repayment advanced to December 20, 2027 - The loan is secured by legal charges over Guangzhou Property Two and **100%** equity interest in Guangzhou Youchang[36](index=36&type=chunk) - Guaranteed by Guangdong Changliu, Guangzhou Youchang, Guangzhou Lianwei, and personally by Mr. Han[36](index=36&type=chunk) - The full repayment date has been advanced to **December 20, 2027**[36](index=36&type=chunk) [Bank Loan Three (Guangzhou Rural Commercial Bank Loan)](index=19&type=section&id=Bank%20Loan%20Three%20(Guangzhou%20Rural%20Commercial%20Bank%20Loan)) Guangzhou Rural Commercial Bank Loan, totaling approximately HKD 258,238 thousand, is secured by Guangdong Changliu's property and personally guaranteed by Mr. Han, with full repayment advanced to May 20, 2027 - The loan is secured by Guangdong Changliu's property and personally guaranteed by Mr. Han[36](index=36&type=chunk) - The full repayment date has been advanced to **May 20, 2027**[36](index=36&type=chunk) [Share Capital](index=20&type=section&id=Share%20Capital) As of June 30, 2025, the Company's issued share capital increased due to the issuance of 21,000,000 new shares, raising net proceeds of approximately HKD 6,825 thousand Share Capital Movement (As of June 30) | Item | Number of Shares | Amount (HKD thousands) | | :--- | :--- | :--- | | As of January 1, 2025 (audited) | 117,245,044 | 23,449 | | Issuance of new shares | 21,000,000 | 6,825 | | As of June 30, 2025 (unaudited) | 138,245,044 | 30,274 | - On January 17, 2025, the Company issued **21,000,000 new shares** at **HKD 0.325 per share**, raising net proceeds of approximately **HKD 6,825 thousand**, intended for general working capital[38](index=38&type=chunk) [Contingent Liabilities](index=20&type=section&id=Contingent%20Liabilities) Group subsidiaries are involved in two legal proceedings, ordered to pay approximately RMB 57 million and an additional RMB 24 million in overdue payments, and are seeking to apply for retrial at the China High Court - Group subsidiaries Guangdong Changyang and Guangdong Changliu are defendants in **two legal proceedings**[39](index=39&type=chunk) - The first case was ordered to pay approximately **RMB 57 million**, and the second case an additional **RMB 24 million** in overdue payments[39](index=39&type=chunk) - The subsidiaries have sought China legal opinion, believing there are sufficient grounds to apply for a retrial at the China High Court[39](index=39&type=chunk) [Management Discussion and Analysis](index=21&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a review of the Group's business, financial performance, outlook, and key financial metrics for the reporting period [Business Review](index=21&type=section&id=Business%20Review) For the six months ended June 30, 2025, the Group recorded revenue of approximately HKD 28,312 thousand and a loss after tax of approximately HKD 15,270 thousand Business Review Key Data (For the six months ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Revenue | 28,312 | 56,461 | | Loss after tax | 15,270 | 11,740 | [Continuing Connected Transactions](index=21&type=section&id=Continuing%20Connected%20Transactions) A subsidiary of the Company entered into new lease agreements with companies indirectly wholly-owned by connected persons, constituting continuing connected transactions - New Xie Service Co., Ltd., a wholly-owned subsidiary of the Company, entered into new lease agreements with Yongchengxin Investment Co., Ltd., Yongjiaxin Investment Co., Ltd., and Jiacheng Jiaxin International Property Management (Hong Kong) Co., Ltd[41](index=41&type=chunk) - These transactions constitute continuing connected transactions under **Chapter 14A of the Listing Rules**[41](index=41&type=chunk) [Outlook and Prospects](index=21&type=section&id=Outlook%20and%20Prospects) The Group adopts "New Life, New City" as its future business development theme, aiming to integrate property management, retail and consumer, investment properties, and property development segments to meet daily needs - The Group adopts **"New Life, New City"** as its future business development theme[42](index=42&type=chunk) - The goal is to integrate businesses such as Guangzhou property management, Mainland China retail and consumer, Luoyang investment properties, and Zhuhai property development[42](index=42&type=chunk) [Leasing and Property Management Business in Guangzhou](index=21&type=section&id=Leasing%20and%20Property%20Management%20Business%20in%20Guangzhou) Guangdong Changliu Investment Co., Ltd., as the primary operating unit, saw a slight decrease in profits from rental and related management services compared to the prior year, but it remains a core business activity for the Group - Guangdong Changliu's profits from rental and related management services slightly decreased compared to the prior year[43](index=43&type=chunk) - The leasing business will continue to be one of the Group's principal business activities[43](index=43&type=chunk) [Retail and Consumer-Related Businesses in Mainland China](index=22&type=section&id=Retail%20and%20Consumer-Related%20Businesses%20in%20Mainland%20China) The Group's retail and consumer-related businesses in Mainland China were restructured at the end of 2024, and the Group will cautiously monitor market changes to steadily expand into more promising business models in the second half of the year - Retail and consumer-related businesses in Mainland China were restructured at the end of **2024** in response to changes in the Chinese economy[44](index=44&type=chunk) - The Group will cautiously monitor structural market changes and emerging opportunities, planning to steadily expand into more promising business models starting from the second half of the year[44](index=44&type=chunk) [Investment Properties in Luoyang](index=22&type=section&id=Investment%20Properties%20in%20Luoyang) The development of Luoyang Property continues to advance, with the land use successfully changed to commercial and residential mixed-use, and the Group is actively communicating with government departments for official project commencement approvals - Luoyang Property's construction plan has been submitted, revised, and a construction land permit obtained[45](index=45&type=chunk) - The application to change the project's land use to commercial and residential mixed-use has been successfully approved, and planning conditions confirmed[45](index=45&type=chunk)[46](index=46&type=chunk) - The Group is actively communicating with relevant government departments, awaiting official approvals required to commence the project[46](index=46&type=chunk) [Property Development in Zhuhai](index=22&type=section&id=Property%20Development%20in%20Zhuhai) The Group is closely monitoring adjustments in the Chinese real estate market, will prudently decide on the next steps for the Zhuhai property development project, and maintains an optimistic long-term market outlook - The Group is monitoring the pace of development in the Chinese real estate market to determine the next steps for the Zhuhai property project[47](index=47&type=chunk) - The Group remains optimistic about the long-term Chinese real estate market while observing market dynamics to make favorable business decisions[47](index=47&type=chunk) [Acquisition of Concrete Mixer Trucks](index=23&type=section&id=Acquisition%20of%20Concrete%20Mixer%20Trucks) The Company agreed to acquire 70 concrete mixer trucks for approximately HKD 13,056 thousand, aiming to diversify into concrete logistics and transportation services as an additional revenue source, with payment extended to December 31, 2025 - The Company agreed to purchase **70 concrete mixer trucks** for a total consideration of **RMB 12,011,520.00** (approximately **HKD 13,056,000.00**)[48](index=48&type=chunk) - The consideration will be settled by issuing and allotting **17,000,000 new shares** at an issue price of **HKD 0.768 per share**[48](index=48&type=chunk) - This aims to diversify the business into concrete logistics and transportation services as an additional revenue source. The payment deadline has been extended to **December 31, 2025**[49](index=49&type=chunk) [Financial Review](index=23&type=section&id=Financial%20Review) During the review period, the Group's revenue and loss for the period were HKD 28,312 thousand and HKD 15,270 thousand, respectively, with a basic loss per share of 3.97 HK cents Financial Review Key Data (For the six months ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Revenue | 28,312 | 56,461 | | Loss for the period | 15,270 | 11,740 | | Basic loss per share (HK cents) | 3.97 | 9.15 | [Dividends](index=23&type=section&id=Dividends) The Board does not recommend an interim dividend, consistent with the prior year - The Board does not recommend an interim dividend (2024: **nil**)[51](index=51&type=chunk) [Liquidity, Financial Resources and Capital Requirements](index=24&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Requirements) As of June 30, 2025, the Group's total assets and liabilities increased, cash and bank balances rose, and the current ratio significantly improved to 2.72 Liquidity Key Data | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Total assets | 1,653,144 | 1,609,797 | | Total liabilities | 1,425,984 | 1,336,389 | | Cash and bank balances | 10,105 | 8,459 | | Current ratio | 2.72 | 1.33 | [Gearing Ratio](index=24&type=section&id=Gearing%20Ratio) As of June 30, 2025, the gearing ratio was 81%, a slight increase from 78% as of December 31, 2024 Gearing Ratio | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gearing ratio (liabilities / equity) | 81% | 78% | [Exchange Rate Risk](index=24&type=section&id=Exchange%20Rate%20Risk) The Group's principal operations are in China and Hong Kong, with primary operating currencies being HKD and RMB, and it closely monitors RMB exchange rate fluctuations and assesses exchange risk - The Group's principal operating currencies are **HKD** and **RMB**[54](index=54&type=chunk) - The Company regularly and closely monitors RMB exchange rate fluctuations and continuously assesses exchange rate risk[54](index=54&type=chunk) [Capital Structure](index=24&type=section&id=Capital%20Structure) There have been no changes to the Company's capital structure - There have been no changes to the Company's capital structure[55](index=55&type=chunk) [Pledge of Assets](index=24&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group pledged investment properties and properties under development for sale in Guangzhou, Luoyang, and Zhuhai as collateral for bank borrowings - The Group pledged investment properties and properties under development for sale in Guangzhou, Luoyang, and Zhuhai as collateral for bank borrowings[56](index=56&type=chunk) [Material Investments, Major Acquisitions and Disposals, and Future Plans for Material Investments or Capital Assets](index=24&type=section&id=Material%20Investments%2C%20Major%20Acquisitions%20and%20Disposals%2C%20and%20Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) Apart from the disclosed acquisition of concrete mixer trucks, the Company had no other material investments, major acquisitions, or disposals during the review period - Apart from the disclosed acquisition of concrete mixer trucks, the Company had no other material investments or major acquisitions and disposals during the review period[57](index=57&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=25&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed shares during the review period - Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed shares during the review period[58](index=58&type=chunk) [Contingent Liabilities](index=25&type=section&id=Contingent%20Liabilities) Details of contingent liabilities are disclosed in Note 19 to the financial statements - Details of contingent liabilities are set out in **Note 19** of this announcement[59](index=59&type=chunk) [Commitments](index=25&type=section&id=Commitments) As of June 30, 2025, the Group had no commitments - As of June 30, 2025, the Group had no commitments[60](index=60&type=chunk) [Other Information](index=25&type=section&id=Other%20Information) This section covers corporate governance, employee information, directors' and major shareholders' interests in securities, and the audit committee's review [Corporate Governance](index=25&type=section&id=Corporate%20Governance) The Company complied with the Corporate Governance Code during the review period, with some deviations regarding the Chairman also being CEO and non-executive directors lacking specific terms, but the Board deems the current structure adequate for operational oversight - The Company's Chairman is also the Chief Executive Officer, deviating from **Code Provision A.2.1**[61](index=61&type=chunk) - The Company's non-executive directors do not have specific terms of appointment, deviating from **Code Provisions A.4.1 and A.4.2**[61](index=61&type=chunk) - The Chairman of the Board is not required to retire by rotation or be counted in the number of directors subject to annual retirement, deviating from **Code Provision A.4.2**[62](index=62&type=chunk) [Employees](index=26&type=section&id=Employees) As of June 30, 2025, the Group employed approximately 46 staff in Hong Kong and China, offering a competitive remuneration package - As of June 30, 2025, the Group employed approximately **46 staff** in Hong Kong and China[63](index=63&type=chunk) - The Group provides employees with a competitive remuneration package, reviewed annually[63](index=63&type=chunk) [Directors' Interests and Short Positions in Shares, Underlying Shares and Debentures](index=26&type=section&id=Directors%27%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures) As of June 30, 2025, Executive Director Mr. Han Junran held long positions in the Company's shares and underlying shares, including controlled corporation interests and beneficial owner interests Directors' Long Positions in the Company's Shares and Underlying Shares (As of June 30, 2025) | Director Name | Capacity / Nature of Interest | Number of Shares and Underlying Shares Held | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Han Junran | Interest in controlled corporation | 37,733,255 | 27.29% | | Mr. Han Junran | Beneficial owner | 32,521,754 | 23.52% | - Junyi Investment Co., Ltd., wholly-owned by Executive Director Mr. Han Junran, holds **37,733,255 shares**[64](index=64&type=chunk) [Substantial Shareholders' and Other Persons' Interests in Shares and Underlying Shares](index=27&type=section&id=Substantial%20Shareholders%27%20and%20Other%20Persons%27%20Interests%20in%20Shares%20and%20Underlying%20Shares) As of June 30, 2025, besides directors' interests, Junyi Investment Co., Ltd. and Qilu International Funds SPC (acting for Zhongtai Dingfeng Classified Fund SP) were substantial shareholders, holding 27.29% and 50.82% of shares, respectively Substantial Shareholders' Long Positions in the Company's Shares (As of June 30, 2025) | Name | Capacity | Number of Shares and Underlying Shares Held | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Junyi Investment Co., Ltd. | Beneficial owner | 37,733,255 | 27.29% | | Qilu International Funds SPC (acting for and on behalf of Zhongtai Dingfeng Classified Fund SP) | Holder of security interest | 70,255,009 | 50.82% | | Zhongtai International Asset Management Limited | Investment manager | 70,255,009 | 50.82% | - Junyi Investment Co., Ltd. is wholly-owned by Executive Director Mr. Han Junran[66](index=66&type=chunk) - Qilu International Funds SPC is an investment fund managed by Zhongtai International Asset Management Limited[66](index=66&type=chunk) [Standard Code for Securities Transactions by Directors](index=28&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company adopted the Model Code set out in Appendix 10 of the Listing Rules, and all directors confirmed compliance during the review period - The Company has adopted the **Model Code** set out in **Appendix 10 of the Listing Rules**[68](index=68&type=chunk) - All directors confirmed compliance with the Model Code during the review period[68](index=68&type=chunk) [Audit Committee](index=28&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, reviewed the Group's accounting principles, practices, internal controls, and condensed consolidated financial statements - The Audit Committee comprises three independent non-executive directors: **Mr. Chan Yiu Tung**, **Mr. Zhang Jing**, and **Mr. Leung Kwai Wah**[69](index=69&type=chunk) - The Audit Committee reviewed the Group's accounting principles and practices, and discussed internal controls and the condensed consolidated financial statements[69](index=69&type=chunk) [Board of Directors](index=28&type=section&id=Board%20of%20Directors) As of the announcement date, the Board of Directors comprises two executive directors and five independent non-executive directors - The Board of Directors comprises two executive directors (**Mr. Han Junran** and **Mr. Luo Min**) and five independent non-executive directors (**Mr. Chan Yiu Tung**, **Dr. Au Yeung Ching Yu**, **Mr. Leung Kwai Wah**, **Mr. Zhang Jing**, and **Mr. Luo Zhen**)[71](index=71&type=chunk)

[Interim Results Highlights](index=1&type=section&id=Interim%20Results%20Highlights) Inspur Digital Enterprise Technology Co., Ltd. announced its unaudited consolidated results for the six months ended June 30, 2025, with revenue growing by 4.88% and profit attributable to owners of the Company increasing by 73.26% to RMB 16.04 cents per basic share Key Financial Highlights for H1 2025 | Metric | June 30, 2025 (thousand RMB) | June 30, 2024 (thousand RMB) | YoY Growth Rate | | :----- | :--------------------------- | :--------------------------- | :-------------- | | Revenue | 4,343,457 | 4,141,171 | 4.88% | | Profit attributable to owners of the Company | 183,142 | 105,702 | 73.26% | | Basic earnings per share | 16.04 cents | 9.26 cents | 73.22% | [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's unaudited consolidated financial statements for the six months ended June 30, 2025, including statements of profit or loss, comprehensive income, financial position, changes in equity, and cash flows, with comparisons to prior periods [Consolidated Statement of Profit or Loss](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the company's revenue increased by 4.88%, gross profit by 11.32%, and both profit before tax and profit attributable to owners of the Company achieved significant growth Key Data from Consolidated Statement of Profit or Loss (thousand RMB) | Metric | June 30, 2025 | June 30, 2024 | | :----- | :------------ | :------------ | | Revenue | 4,343,457 | 4,141,171 | | Gross Profit | 1,014,906 | 911,681 | | Profit before tax | 186,000 | 106,708 | | Profit for the period attributable to owners of the Company | 183,142 | 105,702 | | Basic earnings per share (RMB cents) | 16.04 | 9.26 | [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company reported a profit for the period of **184,248 thousand RMB** and total comprehensive income of **181,523 thousand RMB**, primarily impacted by exchange differences Key Data from Consolidated Statement of Comprehensive Income (thousand RMB) | Metric | June 30, 2025 | June 30, 2024 | | :----- | :------------ | :------------ | | Profit for the period | 184,248 | 105,971 | | Exchange differences arising on translation to presentation currency | (2,725) | (219) | | Total comprehensive income for the period | 181,523 | 105,752 | [Consolidated Statement of Financial Position](index=4&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets less current liabilities increased to **2,927,318 thousand RMB**, with net current assets remaining robust and other intangible assets within non-current assets showing significant growth Key Data from Consolidated Statement of Financial Position (thousand RMB) | Metric | June 30, 2025 | December 31, 2024 | | :----- | :------------ | :---------------- | | Total non-current assets | 1,806,701 | 1,755,615 | | Total current assets | 7,016,782 | 6,349,181 | | Total current liabilities | 5,896,165 | 5,283,199 | | Net current assets | 1,120,617 | 1,065,982 | | Total equity | 2,696,902 | 2,584,747 | - Other intangible assets increased from **73,026 thousand RMB** as of December 31, 2024, to **114,250 thousand RMB** as of June 30, 2025, indicating increased investment in intangible assets[7](index=7&type=chunk) - Trade and bills receivables increased from **3,141,322 thousand RMB** as of December 31, 2024, to **3,381,462 thousand RMB** as of June 30, 2025[7](index=7&type=chunk) - Under borrowings, current borrowings increased from zero as of December 31, 2024, to **730,650 thousand RMB** as of June 30, 2025, and non-current borrowings also increased from zero to **19,847 thousand RMB**[8](index=8&type=chunk) [Consolidated Statement of Changes in Equity](index=6&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, total equity attributable to owners of the Company increased to **2,623,280 thousand RMB**, primarily due to increased profit for the period, alongside dividend distributions and share-based payment recognition Key Data from Consolidated Statement of Changes in Equity (thousand RMB) | Metric | June 30, 2025 | January 1, 2024 | | :----- | :------------ | :-------------- | | Total equity attributable to owners of the Company | 2,623,280 | 2,047,564 | | Profit for the period | 183,142 | 105,702 | | Dividends | (84,229) | (31,255) | - In the first half of 2025, the company recognized **3,400 thousand RMB** for equity-settled share-based payments and an increase of **11,461 thousand RMB** from share issuance proceeds[9](index=9&type=chunk) [Consolidated Statement of Cash Flows](index=7&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, cash outflows from operating and investing activities increased, but a substantial increase in cash inflows from financing activities significantly narrowed the net decrease in cash and cash equivalents Key Data from Consolidated Statement of Cash Flows (thousand RMB) | Metric | June 30, 2025 | June 30, 2024 | | :----- | :------------ | :------------ | | Cash flows used in operating activities | (881,040) | (742,250) | | Cash flows used in investing activities | (70,414) | (4,156) | | Cash flows from financing activities | 900,447 | 10,722 | | Net decrease in cash and cash equivalents | (51,007) | (735,684) | | Bank balances and cash at end of period | 859,481 | 528,704 | [Notes to the Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) This section details the basis of preparation, significant accounting policies, composition and changes in financial statement line items, and related party transactions, providing essential context for understanding the financial data [General Information](index=8&type=section&id=General%20Information) Inspur Digital Enterprise Technology Co., Ltd. is incorporated in the Cayman Islands, listed on the Hong Kong Stock Exchange, with Inspur Group Co., Ltd. as its ultimate holding company, focusing on enterprise management software, cloud services, and IoT solutions - The Company is an investment holding company, with its subsidiaries primarily engaged in enterprise management software, cloud services, and IoT solutions[12](index=12&type=chunk) - The functional currency and presentation currency of the Company's consolidated financial statements are both RMB[12](index=12&type=chunk) [Significant Accounting Policies](index=8&type=section&id=Significant%20Accounting%20Policies) The consolidated financial statements are prepared on a historical cost basis, except for investment properties and financial instruments measured at fair value, with consistent accounting policies and no material impact from new HKFRS amendments - The consolidated financial statements are prepared on a historical cost basis, except for investment properties and financial instruments measured at fair value[13](index=13&type=chunk) - The accounting policies and methods of computation adopted for the consolidated financial statements for the six months ended June 30, 2025, are consistent with those presented in the annual financial statements for the year ended December 31, 2024[13](index=13&type=chunk) [Application of Amendments to Hong Kong Financial Reporting Standards](index=9&type=section&id=Application%20of%20Amendments%20to%20Hong%20Kong%20Financial%20Reporting%20Standards) Amendments to Hong Kong Financial Reporting Standards, including HKAS 21 (Amendment) Lack of Exchangeability, first applied in this interim period, have no material impact on the Group's financial performance or position - The application of amendments to Hong Kong Financial Reporting Standards in this interim period has no material impact on the Group's financial performance and position for the current and prior periods, and/or on the disclosures in these condensed consolidated financial statements[14](index=14&type=chunk) [Revenue and Segment Information](index=10&type=section&id=Revenue%20and%20Segment%20Information) The company's revenue primarily derives from three business segments: Cloud Services, Management Software, and IoT Solutions, with Cloud Services showing significant growth as the main driver, while Management Software and IoT Solutions experienced slight revenue declines Segment Revenue and Profit (June 30, 2025, thousand RMB) | Segment | Revenue | Profit | | :------ | :------ | :----- | | Cloud Services | 1,273,911 | 19,916 | | Management Software | 1,197,849 | 184,778 | | IoT Solutions | 1,871,697 | 17,923 | Segment Revenue and Profit (June 30, 2024, thousand RMB) | Segment | Revenue | Profit | | :------ | :------ | :----- | | Cloud Services | 980,201 | (70,738) | | Management Software | 1,201,892 | 173,955 | | IoT Solutions | 1,959,078 | 20,394 | [Other Income](index=12&type=section&id=Other%20Income) For the six months ended June 30, 2025, the company's total other income decreased to **60,108 thousand RMB** from **94,416 thousand RMB** in the prior period, primarily due to reduced government grants and rental income Composition of Other Income (thousand RMB) | Item | June 30, 2025 | June 30, 2024 | | :--- | :------------ | :------------ | | Government grants | 20,633 | 46,727 | | Rental income | 10,865 | 20,300 | | VAT refunds | 18,172 | 16,613 | [Income Tax Expense](index=12&type=section&id=Income%20Tax%20Expense) For the six months ended June 30, 2025, the company's income tax expense increased to **1,752 thousand RMB** from **737 thousand RMB** in the prior period, mainly due to current PRC Enterprise Income Tax and under-provision in prior years Composition of Income Tax Expense (thousand RMB) | Item | June 30, 2025 | June 30, 2024 | | :--- | :------------ | :------------ | | PRC Enterprise Income Tax (current) | 864 | 5,565 | | Under-provision in prior years: PRC Enterprise Income Tax | 888 | (11,028) | [Profit for the Period](index=13&type=section&id=Profit%20for%20the%20Period) For the six months ended June 30, 2025, the company's profit for the period was **184,248 thousand RMB**, with inventory costs recognized as cost of sales at **1,762,075 thousand RMB** and total depreciation and amortization expenses at **27,072 thousand RMB** Profit for the Period Related Deductions/Additions (thousand RMB) | Item | June 30, 2025 | June 30, 2024 | | :--- | :------------ | :------------ | | Cost of inventories recognized as cost of sales | 1,762,075 | 1,834,047 | | Depreciation of property, plant and equipment | 15,325 | 15,686 | | Amortization of other intangible assets | 11,747 | 9,567 | [Dividends](index=13&type=section&id=Dividends) The Board of Directors recommends no dividend distribution for the six months ended June 30, 2025, consistent with the prior period - The Board of Directors recommends no dividend distribution for the six months ended June 30, 2025[21](index=21&type=chunk) [Earnings Per Share](index=14&type=section&id=Earnings%20Per%20Share) For the six months ended June 30, 2025, basic earnings per share attributable to owners of the Company were **16.04 RMB cents**, and diluted earnings per share were **15.97 RMB cents**, both showing significant growth compared to the prior period Earnings Per Share Calculation Data | Metric | June 30, 2025 | June 30, 2024 | | :----- | :------------ | :------------ | | Profit for the period attributable to owners of the Company (thousand RMB) | 183,142 | 105,702 | | Number of ordinary shares for basic EPS calculation (thousand shares) | 1,141,950 | 1,141,921 | | Weighted average number of ordinary shares for diluted EPS calculation (thousand shares) | 1,147,106 | 1,142,072 | [Trade and Bills Receivables](index=15&type=section&id=Trade%20and%20Bills%20Receivables) As of June 30, 2025, the company's total trade and bills receivables increased to **3,381,462 thousand RMB**, with a notable increase in receivables aged over 180 days Trade Receivables Aging Analysis (thousand RMB) | Aging | June 30, 2025 | December 31, 2024 | | :---- | :------------ | :---------------- | | 0 to 30 days | 1,277,583 | 1,609,251 | | Over 180 days | 1,151,616 | 645,036 | - The company provides average credit terms of **30 to 210 days** to its trade customers[23](index=23&type=chunk) [Amounts Due from Ultimate Holding Company and Fellow Subsidiaries](index=15&type=section&id=Amounts%20Due%20from%20Ultimate%20Holding%20Company%20and%20Fellow%20Subsidiaries) As of June 30, 2025, amounts due from the ultimate holding company and fellow subsidiaries totaled **618,574 thousand RMB**, a slight decrease from December 31, 2024 Amounts Due from Related Parties (thousand RMB) | Item | June 30, 2025 | December 31, 2024 | | :--- | :------------ | :---------------- | | Amounts due from ultimate holding company | 22,878 | 19,728 | | Amounts due from fellow subsidiaries | 595,696 | 619,497 | [Contract Assets and Contract Liabilities](index=16&type=section&id=Contract%20Assets%20and%20Contract%20Liabilities) As of June 30, 2025, the company's current contract assets significantly increased to **1,550,763 thousand RMB**, and current contract liabilities rose to **1,322,970 thousand RMB**, primarily related to software development business Contract Assets and Contract Liabilities (thousand RMB) | Item | June 30, 2025 | December 31, 2024 | | :--- | :------------ | :---------------- | | Current – Software development contract assets | 1,550,763 | 1,059,191 | | Current – Software development contract liabilities | 1,322,970 | 1,144,112 | [Impairment Assessment of Financial Assets](index=16&type=section&id=Impairment%20Assessment%20of%20Financial%20Assets) For the six months ended June 30, 2025, the company recognized total impairment losses of **30,884 thousand RMB** for trade receivables and contract assets, a significant increase from the prior period Impairment Losses (thousand RMB) | Item | June 30, 2025 | June 30, 2024 | | :--- | :------------ | :------------ | | Trade receivables | 13,384 | 680 | | Contract assets | 17,500 | 8,273 | [Trade and Other Payables](index=17&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, the company's total trade payables were **2,537,081 thousand RMB**, a slight decrease from December 31, 2024, with a significant increase in payables aged over 90 days Trade Payables Aging Analysis (thousand RMB) | Aging | June 30, 2025 | December 31, 2024 | | :---- | :------------ | :---------------- | | 0 to 60 days | 1,261,585 | 2,079,506 | | Over 90 days | 1,186,201 | 493,253 | [Amounts Due to Ultimate Holding Company and Fellow Subsidiaries](index=17&type=section&id=Amounts%20Due%20to%20Ultimate%20Holding%20Company%20and%20Fellow%20Subsidiaries) As of June 30, 2025, amounts due to the ultimate holding company and fellow subsidiaries totaled **348,030 thousand RMB**, an increase from December 31, 2024 Amounts Due to Related Parties (thousand RMB) | Item | June 30, 2025 | December 31, 2024 | | :--- | :------------ | :---------------- | | Amounts due to ultimate holding company | 45,723 | 2,488 | | Amounts due to fellow subsidiaries | 302,307 | 333,196 | [Borrowings](index=18&type=section&id=Borrowings) As of June 30, 2025, the company incurred new bank borrowings of **750,497 thousand RMB**, comprising current and non-current portions, with effective annual interest rates ranging from **2.50% to 3.30%** Composition of Borrowings (thousand RMB) | Item | June 30, 2025 | December 31, 2024 | | :--- | :------------ | :---------------- | | Current bank borrowings | 730,650 | — | | Non-current bank borrowings | 19,847 | — | - The Group's bank borrowings have effective annual interest rates ranging from **2.50% to 3.30%**[33](index=33&type=chunk) [Share Capital of the Company](index=18&type=section&id=Share%20Capital%20of%20the%20Company) As of June 30, 2025, the company's issued ordinary share capital increased to **10,813 thousand RMB**, with the number of shares rising to **1,143,785 thousand shares** Share Capital Information | Metric | June 30, 2025 | June 30, 2024 | | :----- | :------------ | :------------ | | Share capital (thousand RMB) | 10,813 | 10,796 | | Number of shares (thousand shares) | 1,143,785 | 1,141,921 | [Related Party Transactions/Balances](index=19&type=section&id=Related%20Party%20Transactions%2FBalances) The company engages in various related party transactions with its ultimate holding company, Inspur Group, and its subsidiaries, including supply, sales agency, procurement, utility, leasing, and travel services, alongside a financial services agreement with Inspur Group Finance Co., Ltd Related Party Transactions (thousand RMB) | Transaction Type | June 30, 2025 | June 30, 2024 | | :--------------- | :------------ | :------------ | | Supply transactions | 164,871 | 249,497 | | Sales agency transactions (cumulative transaction amount) | 109,815 | 307,181 | | Purchase transactions | 165,247 | 240,209 | - The company entered into a framework financial services agreement with Inspur Group Finance Co., Ltd., providing deposit, loan financing, settlement, and other financial services, with maximum daily deposit balances and total loan financing not exceeding **500,000,000 RMB**[37](index=37&type=chunk) - As of June 30, 2025, the company's daily deposit balance and cumulative borrowings with Inspur Finance Co., Ltd. did not exceed the respective limits[37](index=37&type=chunk) [Financial Review](index=21&type=section&id=Financial%20Review) This section provides a detailed review and analysis of the financial performance during the reporting period, focusing on changes and drivers in revenue, gross profit, expenses, other income, investment income, and overall profit and financial liquidity [Revenue](index=21&type=section&id=Revenue) During the reporting period, the company's revenue grew by **4.88%** to **4,343,457 thousand RMB**, with cloud services revenue increasing by **29.96%** as the primary driver, accounting for **51.54%** of software and cloud services revenue, while management software and IoT solutions revenue slightly decreased Revenue and Segment Revenue (thousand RMB) | Item | June 30, 2025 | June 30, 2024 | YoY Growth Rate | | :--- | :------------ | :------------ | :-------------- | | Revenue | 4,343,457 | 4,141,171 | 4.88% | | Cloud Services business revenue | 1,273,911 | 980,201 | 29.96% | | Management Software business revenue | 1,197,849 | 1,201,892 | -0.34% | | IoT Solutions business revenue | 1,871,697 | 1,959,078 | -4.46% | [Gross Profit](index=22&type=section&id=Gross%20Profit) During the reporting period, the company's gross profit increased by **11.32%** to **1,014,906 thousand RMB**, with the overall gross profit margin improving by **1.35 percentage points** to **23.37%** Gross Profit and Gross Profit Margin (thousand RMB) | Metric | June 30, 2025 | June 30, 2024 | | :----- | :------------ | :------------ | | Gross Profit | 1,014,906 | 911,681 | | Overall Gross Profit Margin | 23.37% | 22.02% | [Administrative, Research and Development, and Selling Expenses](index=22&type=section&id=Administrative%2C%20Research%20and%20Development%2C%20and%20Selling%20Expenses) During the reporting period, administrative expenses slightly decreased due to reduced personnel costs; R&D expenses remained largely flat at **439,748 thousand RMB** in total; and selling and distribution expenses increased by **4.97%** due to higher sales-related personnel costs Various Expenses (thousand RMB) | Expense Type | June 30, 2025 | June 30, 2024 | Change | | :----------- | :------------ | :------------ | :----- | | Administrative expenses | 199,444 | 200,318 | -0.44% | | Research and development expenses | 397,502 | 435,791 | -8.79% (reported expense) | | Selling and distribution expenses | 256,939 | 244,763 | 4.97% | - Capitalized R&D expenses for the period amounted to **42,246 thousand RMB**, with total R&D expenditure of **439,748 thousand RMB**, remaining largely consistent with the prior period[42](index=42&type=chunk) [Other Income/Other Net Gains from Operations](index=23&type=section&id=Other%20Income%2FOther%20Net%20Gains%20from%20Operations) During the reporting period, other income/other net gains decreased by **36.34%** to **60,108 thousand RMB**, primarily due to reduced government grants and investment property rental income, as the Jinan property was converted for internal company use Other Income/Other Net Gains (thousand RMB) | Item | June 30, 2025 | June 30, 2024 | Change | | :--- | :------------ | :------------ | :----- | | Total other income/other net gains | 60,108 | 94,416 | -36.34% | | Government grants | 20,633 | 46,727 | -55.84% | | Investment property rental income | 10,865 | 20,300 | -46.48% | [Share of Profits from Associates and Joint Ventures](index=23&type=section&id=Share%20of%20Profits%20from%20Associates%20and%20Joint%20Ventures) During the reporting period, share of profits from associates increased by **5.41%** to **3,778 thousand RMB**, while share of profits from joint ventures significantly grew to **3,378 thousand RMB** Share of Profits from Associates and Joint Ventures (thousand RMB) | Item | June 30, 2025 | June 30, 2024 | | :--- | :------------ | :------------ | | Share of profits from associates | 3,778 | 3,584 | | Share of profits from joint ventures | 3,378 | 268 | [Profit Before Tax](index=23&type=section&id=Profit%20Before%20Tax) During the reporting period, the company's profit before tax increased to **186,000 thousand RMB**, primarily driven by the cloud services business turning profitable and growth in the management software segment's operating profit Profit Before Tax and Key Drivers (thousand RMB) | Metric | June 30, 2025 | June 30, 2024 | | :----- | :------------ | :------------ | | Profit before tax | 186,000 | 106,708 | | Operating profit from Cloud Services business | 19,916 | (70,738) | | Operating profit from Management Software business segment | 184,778 | 173,955 | [Profit Attributable to Owners of the Company](index=24&type=section&id=Profit%20Attributable%20to%20Owners%20of%20the%20Company) During the reporting period, profit attributable to owners of the Company significantly increased to **183,142 thousand RMB**, primarily due to the cloud services business turning profitable and growth in management software business profit, with both basic and diluted earnings per share showing substantial improvement Profit Attributable to Owners of the Company and Earnings Per Share (thousand RMB/cents) | Metric | June 30, 2025 | June 30, 2024 | | :----- | :------------ | :------------ | | Profit attributable to owners of the Company | 183,142 | 105,702 | | Basic earnings per share (RMB cents) | 16.04 | 9.26 | | Diluted earnings per share (RMB cents) | 15.97 | 9.26 | [Financial Resources and Liquidity](index=24&type=section&id=Financial%20Resources%20and%20Liquidity) As of June 30, 2025, the company's current assets were **7,016,782 thousand RMB**, current liabilities were **5,896,165 thousand RMB**, and the current ratio was **1.19 times**, indicating a sound financial position, with new bank borrowings and loans from Inspur Group Finance Co., Ltd Key Financial Resources and Liquidity Data (thousand RMB) | Metric | June 30, 2025 | December 31, 2024 | | :----- | :------------ | :---------------- | | Current assets | 7,016,782 | 6,349,181 | | Current liabilities | 5,896,165 | 5,283,199 | - The Group's current assets were **1.19 times** its current liabilities (December 31, 2024: **1.20 times**)[47](index=47&type=chunk) - The Group's borrowings from banks amounted to **750,497 thousand RMB**, and borrowings from Inspur Group Finance Co., Ltd. amounted to **280,957 thousand RMB**[47](index=47&type=chunk) [Business Review](index=25&type=section&id=Business%20Review) During the reporting period, the company adhered to its "AI First" strategy, fully embracing large AI model technology, continuously developing AI-native enterprise software and solutions, and making progress across its cloud services, management software, and IoT solutions businesses to support enterprise digital transformation [Overall Business Strategy](index=25&type=section&id=Overall%20Business%20Strategy) The company adheres to an "AI First" strategy, fully embracing large AI model technology with a focused, intelligent, ecological, and global development philosophy to create AI-native enterprise software and full-stack tool services, facilitating comprehensive digital transformation for businesses - The Group adheres to an "AI First" strategy, fully embracing large AI model technology, continuously developing Inspur Haiyue large models and full-stack tool services for the enterprise service sector, creating AI-native Haiyue enterprise software[51](index=51&type=chunk) - During the reporting period, over ten new products were released, including Haiyue Large Model V3.0, Haiyue Business AI V1.0, Haiyue PaaS Platform V8.0, and Haiyue inSuite Standard Edition V5.0[52](index=52&type=chunk) - Focusing on core ERP localization, the company improved its international support foundation, built a unified translation management system, and supports multiple accounting standards and parallel ledgers[52](index=52&type=chunk) - Continuously deepening its presence in the central and state-owned enterprise market, the company has assisted **86 central enterprises**, **190 China Top 500 companies**, and over **1.2 million enterprises** in achieving comprehensive digital transformation[53](index=53&type=chunk) [Cloud Services Business](index=27&type=section&id=Cloud%20Services%20Business) Cloud services business revenue increased by **29.96%** to **1,273,911 thousand RMB**, becoming a key revenue growth driver, with the company launching AI-driven innovative products and solutions across large enterprise, high-growth enterprise, and SME markets - Cloud services business revenue achieved substantial growth, recording **1,273,911 thousand RMB**, a **29.96%** year-on-year increase[54](index=54&type=chunk) [Large Enterprise Market](index=27&type=section&id=Large%20Enterprise%20Market) For large enterprises, the company implemented its "AI First" strategy, launching Haiyue Large Model V3.0, Inspur Haiyue Business AI V1.0, Inspur Haiyue PaaS Platform V8.0, and intelligent ERP GS Cloud and HCM products, offering AI-native, multi-modal, low-code intelligent solutions, and maintaining a leading position in the state-owned asset supervision platform market - Haiyue Large Model V3.0 was released, overcoming technical challenges in AI enterprise-level application scenarios, adopting a composite AI strategy integrating multiple models, modalities, and large/small models to provide trusted AI capabilities[56](index=56&type=chunk) - The Haiyue Large Model is the first enterprise service vertical domain large model in China to complete "dual registration" for both model and algorithm, ranking first in both market position and development capability within China's enterprise service vertical domain large model market[56](index=56&type=chunk) - Inspur Haiyue Business AI V1.0 was released, offering over **100 out-of-the-box scenario intelligent agents** covering more than **40 high-value scenarios** such as finance, supply chain, and project management[57](index=57&type=chunk) - Inspur Haiyue PaaS Platform V8.0 was released, building an AI-driven, one-stop, decomposable PaaS platform product system with the Haiyue Large Model as its intelligent core, ranking first in China's low-code software market[58](index=58&type=chunk) - Inspur Haiyue Large Enterprise Intelligent ERP GS Cloud reconstructed software based on an AI-native architecture, improved product internationalization capabilities, and signed strategic clients such as China Energy Engineering Group and China National Supply and Marketing Cooperatives[59](index=59&type=chunk) - Inspur Haiyue HCM launched the new generation HR intelligent agent Moirai, winning multiple industry awards and ranking among the top three in China's human capital application software market share[60](index=60&type=chunk) - The Intelligent State-owned Assets Online Supervision Platform V8.0 was released, promoting deep integration of AI with state-owned asset supervision, achieving the highest market share in state-owned asset supervision and serving **22 provincial-level State-owned Assets Supervision and Administration Commissions**[61](index=61&type=chunk) [High-Growth Enterprise Market](index=33&type=section&id=High-Growth%20Enterprise%20Market) The company officially launched Inspur Haiyue inSuite Standard Edition V5.0 for high-growth enterprises, deeply integrating AI technology to provide end-to-end integrated solutions for R&D, production, supply, sales, and finance, supporting domestic databases, and achieving strong market expansion in discrete manufacturing, life sciences, and food processing industries - Inspur Haiyue inSuite Standard Edition V5.0 deeply integrates AI technology, achieving breakthroughs in both "out-of-the-box" functionality and "deep customization" through its self-developed vertical domain large model engine[62](index=62&type=chunk) - The product supports domestic databases, asynchronous non-blocking coroutine mode, lightweight deployment, and efficient collaboration, tailored for high-growth enterprises[62](index=62&type=chunk) - Significant market expansion results were achieved in the high-growth enterprise markets of discrete manufacturing, life sciences, and food processing industries[62](index=62&type=chunk) [SME Market](index=34&type=section&id=SME%20Market) Inspur Yiyun focused on SME's integrated business-finance-invoice-tax needs, launching Cloud Business-Finance V6.0 to create a lightweight and transparent user experience with a "1+N" core product system, introducing "Yunyixiao Intelligent Assistant" for five core scenario services, and expanding collaborations with strategic clients like Bank of Communications and Postal Savings Bank - Inspur Yiyun released Cloud Business-Finance V6.0, achieving seamless multi-product integration based on a micro-frontend architecture, unifying the interface, and building a "1+N" core product system[63](index=63&type=chunk) - The "Yunyixiao Intelligent Assistant" was launched, creating an intelligent business-finance expert digital human, offering five core scenario services: intelligent procurement, intelligent taxation, intelligent operations, financial report interpretation, and intelligent Q&A[63](index=63&type=chunk) - Inspur Yiyun deepened its presence in the financial industry, continuing in-depth cooperation with strategic clients such as Bank of Communications and Postal Savings Bank, and launching products on ecological platforms like DingTalk and WPS[63](index=63&type=chunk) [Management Software Business](index=35&type=section&id=Management%20Software%20Business) Management software business revenue was **1,197,849 thousand RMB**, a slight decrease of **0.34%** year-on-year, with the company leveraging the intelligence of the Haiyue Large Model to continuously innovate in digital finance, core ERP, communication information, and digital services, enhancing enterprise operational intelligence - Management software business recorded revenue of **1,197,849 thousand RMB**, a **0.34%** decrease compared to the prior period[64](index=64&type=chunk) [Digital Finance and Core ERP](index=35&type=section&id=Digital%20Finance%20and%20Core%20ERP) In digital finance, the company enhanced financial shared service operational capabilities and expanded treasury management business scenarios, while in core ERP, it developed an integrated supply chain planning system, upgraded the MRP calculation engine, and ranked first among domestic vendors in the supply chain planning software market - In digital finance, the company enhanced financial shared service operational capabilities, developing features such as credit large models, intelligent quality inspection, digital employees, and billing management, assisting financial shared service centers in transforming from cost centers to profit centers[64](index=64&type=chunk) - In core ERP, an integrated supply chain planning system was developed, including intelligent demand forecasting, production and sales collaboration, and MRP intelligent optimization, with a fully upgraded MRP calculation engine supporting efficient computation for ultra-large BOMs[64](index=64&type=chunk) - The company ranked first among domestic vendors in the supply chain planning software market (IDC), signing strategic clients such as Dongfang Electric, COFCO Group, and China National Heavy Duty Truck Group during the reporting period[64](index=64&type=chunk) [Communication Information](index=36&type=section&id=Communication%20Information) The communication information business focused on key areas such as low-altitude economy, autonomous networks, computing power networks, large models, and data centers, launching products like the Low-Altitude Intelligent Network Integrated Operation Service Platform V2.0 and Intelligent Computing Center Intelligent O&M Platform V1.0, and receiving the TM Forum Open API Diamond Award - The Low-Altitude Intelligent Network Integrated Operation Service Platform V2.0 was released, aiming for "networked intelligent management, multi-domain perception, collaborative security, and industrial development"[65](index=65&type=chunk) - The Intelligent Computing Center Intelligent O&M Platform V1.0 was released, providing comprehensive, efficient, and intelligent O&M solutions for intelligent computing data centers[65](index=65&type=chunk) - Communication Information received the TM Forum Open API Diamond Award, the highest honor in the field, ranking third globally[65](index=65&type=chunk) [Digital Services](index=37&type=section&id=Digital%20Services) The digital services business deeply implemented an innovation-driven development strategy, participating for the first time in the national standard formulation for "Automation Systems and Integration - Digital Twin Framework for Manufacturing," actively expanding into the central and state-owned enterprise market, and achieving steady business growth through in-depth cooperation with strategic clients like Haier Group and Zowee Technology - Digital Services participated for the first time in the national standard formulation for "Automation Systems and Integration - Digital Twin Framework for Manufacturing"[66](index=66&type=chunk) - Actively expanding into the central and state-owned enterprise market, successfully signing clients such as COFCO Group, Aluminum Corporation of China, and China Energy Engineering Group[66](index=66&type=chunk) [IoT Solutions Business](index=37&type=section&id=IoT%20Solutions%20Business) IoT solutions business revenue was **1,871,697 thousand RMB**, a year-on-year decrease of **4.46%**, with the company continuing to deepen its presence in intelligent manufacturing, intelligent grain storage, and communication information, while actively expanding into overseas markets - IoT solutions business recorded revenue of **1,871,697 thousand RMB**, a **4.46%** year-on-year decrease[67](index=67&type=chunk) [Intelligent Manufacturing](index=38&type=section&id=Intelligent%20Manufacturing) Targeting sub-sectors like large-scale equipment manufacturing, discrete manufacturing, and process manufacturing, the company developed comprehensive intelligent manufacturing solutions for industries such as power transmission and transformation, coal machinery, and CNC machine tools, possessing capabilities in production line design, automated logistics design, and integrated factory equipment and automation solutions, with Inspur Haiyue MOM solutions holding the leading market share in equipment manufacturing - Developed comprehensive intelligent manufacturing solutions for multiple industries, including power transmission and transformation, coal machinery, and CNC machine tools, further solidifying its leading capability in intelligent manufacturing solutions for the machinery manufacturing sector[68](index=68&type=chunk) - Developed automated production line solutions for the fastener industry, automated logistics scheduling solutions, and automated production feeding solutions, fully supporting the in-depth implementation of intelligent factories[68](index=68&type=chunk) - Inspur Haiyue MOM solutions held the leading market share in China's equipment manufacturing sector (including shipbuilding, infrastructure equipment, power transmission and transformation, etc.) (IDC)[68](index=68&type=chunk) [Intelligent Grain Storage](index=39&type=section&id=Intelligent%20Grain%20Storage) The company launched "Intelligent Grain Storage Large Model V3.0" and "Grain Enterprise Operations Management Intelligent Agent Cluster," achieving breakthroughs in AI-powered intelligent scenarios based on private large models to enhance market competitiveness, completed localization of hardware products like integrated storage control cabinets and AI all-in-one machines, and signed clients such as Fujian Provincial Reserve Grain Management Co., Ltd - "Intelligent Grain Storage Large Model V3.0" and "Grain Enterprise Operations Management Intelligent Agent Cluster" were released, achieving a breakthrough from 0 to 1 in product intelligent scenarios based on private large models[69](index=69&type=chunk) - Completed the localization of hardware products such as integrated storage control cabinets, AI all-in-one storage machines, and AI IoT gateways for storage, and upgraded the integrated control cabinet architecture to reduce costs by one-third[69](index=69&type=chunk) - Signed contracts with Fujian Provincial Reserve Grain Management Co., Ltd. and Anhui Provincial Reserve Grain Management Co., Ltd., deepening its presence in the digital transformation of the grain industry[69](index=69&type=chunk) [Communication Information and Overseas Market Expansion](index=40&type=section&id=Communication%20Information%20and%20Overseas%20Market%20Expansion) Communication Information signed and commenced several major projects in operations support and data centers, including the Ya'an Data Lake Medical-Industrial and Industry-Education Integration Training Base Intelligent Computing Center project, achieving significant overseas market expansion with cooperation agreements signed with Beta Industrial and the first data center and intelligent project launched in Algeria - The contract for the Ya'an Data Lake Medical-Industrial and Industry-Education Integration Training Base Intelligent Computing Center project was signed, marking the maturity of modular data center products for large-scale market deployment[70](index=70&type=chunk) - Communication Information achieved significant overseas market expansion, signing cooperation agreements with companies such as Beta Industrial, Clear Vision, BMC, and Mobily[70](index=70&type=chunk) - The Algeria Medical Data Center and Informatization Project was signed and commenced, representing Communication Information's first data center and intelligent project in the Northwest Africa region[70](index=70&type=chunk) [Future Outlook and Strategy](index=41&type=section&id=Future%20Outlook%20and%20Strategy) The Group will adhere to its "AI First" strategy, accelerating AI empowerment across all industries, businesses, and processes, leveraging first-class products, services, and full-stack solutions to enable high-quality enterprise development, consolidate and expand its advantages in the central and state-owned enterprise market, initiate overseas operations, and enhance organizational support capabilities, striving to become a world-class software enterprise - The Group will adhere to its "AI First" strategy, accelerating AI empowerment across all industries, businesses, and processes[71](index=71&type=chunk) - Empowering high-quality enterprise development with first-class products, services, and full-stack solutions, further consolidating and expanding its advantages in the central and state-owned enterprise market, and initiating overseas operations[71](index=71&type=chunk) - Enhancing organizational support capabilities to safeguard the company's high-quality development and striving to open a new chapter in becoming a world-class software enterprise[71](index=71&type=chunk) [Other Information](index=25&type=section&id=Other%20Information) This section provides supplementary information on the company's employees, pledge of assets, share transactions, competing interests, and share option scheme [Employee Information](index=25&type=section&id=Employee%20Information) As of June 30, 2025, the Group had **8,146 employees**, with total employee remuneration of **881,793 thousand RMB** during the reporting period, determined by performance and capability, alongside mandatory provident funds, medical coverage, and continuing education Employee Information | Metric | June 30, 2025 | | :----- | :------------ | | Total number of employees | 8,146 | | Total employee remuneration (thousand RMB) | 881,793 | [Pledge of Assets](index=25&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group's bank deposits of **46,292 thousand RMB** were pledged, a decrease from **99,291 thousand RMB** as of December 31, 2024 Pledged Bank Deposits (thousand RMB) | Date | Amount | | :--- | :----- | | June 30, 2025 | 46,292 | | December 31, 2024 | 99,291 | [Purchase, Sale or Redemption of Shares](index=41&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Shares) During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's shares - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's shares[72](index=72&type=chunk) [Competing Interests](index=41&type=section&id=Competing%20Interests) During the reporting period, none of the Company's directors, general managers, substantial shareholders, or their respective associates held any interests in businesses competing or potentially competing with the Group's business - During the reporting period, none of the Company's directors, general managers, substantial shareholders, or their respective associates held any interests in businesses competing or potentially competing with the Group's business[73](index=73&type=chunk) [Share Option Scheme](index=41&type=section&id=Share%20Option%20Scheme) The Company adopted a new share option scheme on November 23, 2018, with **27,406,000 shares** available for issue and outstanding under the scheme as of the end of the reporting period - The Company adopted a new share option scheme on November 23, 2018[74](index=74&type=chunk) - As of the end of the reporting period, the number of shares available for issue and outstanding under the share option scheme was **27,406,000**[74](index=74&type=chunk) [Corporate Governance](index=42&type=section&id=Corporate%20Governance) This section outlines the company's corporate governance practices, including the composition and responsibilities of the Audit Committee, and compliance with the Code on Corporate Governance Practices and the Model Code for Securities Transactions by Directors [Audit Committee](index=42&type=section&id=Audit%20Committee) The company established an Audit Committee in accordance with the Listing Rules, primarily responsible for reviewing and overseeing the financial reporting process and internal control systems, comprising three independent non-executive directors with Mr. Wong Lit Cho as Chairman - The Audit Committee is primarily responsible for reviewing and overseeing the Group's financial reporting process and internal control systems[75](index=75&type=chunk) - The Audit Committee comprises three independent non-executive directors: Mr. Wong Lit Cho, Ms. Zhang Ruijun, and Mr. Ding Xiangqian, with Mr. Wong Lit Cho serving as Chairman[75](index=75&type=chunk) [Code on Corporate Governance Practices](index=42&type=section&id=Code%20on%20Corporate%20Governance%20Practices) As of June 30, 2025, the Group has complied with the provisions of the Code on Corporate Governance Practices set out in Appendix 14 to the Main Board Listing Rules - As of June 30, 2025, the Group has complied with the provisions of the Code on Corporate Governance Practices set out in Appendix 14 to the Main Board Listing Rules[77](index=77&type=chunk) [Standard of Dealings in Securities by Directors](index=42&type=section&id=Standard%20of%20Dealings%20in%20Securities%20by%20Directors) The Group has complied with the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix 10 to the Listing Rules, and all directors confirmed compliance during the reporting period - The Group has complied with the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix 10 to the Listing Rules[78](index=78&type=chunk) - All directors have complied with the standards set out in the Model Code for the six months ended June 30, 2025[78](index=78&type=chunk)

[Interim Results Overview](index=1&type=section&id=Interim%20Results%20Overview) This section presents a summary of the company's financial performance and position for the interim period, highlighting key profit and loss and balance sheet figures [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's loss before tax from continuing operations significantly widened to HKD 1,463,115 thousand, a substantial increase from HKD 243,082 thousand in the prior year, with a total loss for the period of HKD 1,420,821 thousand and basic loss per share of HKD 229.12 cents, primarily due to impairment losses on non-financial assets Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (HKD Thousand) | 2024 (HKD Thousand) (Restated) | | :--- | :--- | :--- | | Revenue | 168,128 | 181,890 | | Cost of sales and services | (214,636) | (263,813) | | Other income, gains and losses, net | 1,544 | (7,348) | | Impairment losses on non-financial assets | (1,272,227) | – | | Finance costs | (73,698) | (93,159) | | Loss before tax from continuing operations | (1,463,115) | (243,082) | | Loss for the period from continuing operations | (1,429,789) | (239,839) | | Profit for the period from discontinued operations | 8,968 | 129,914 | | Loss for the period | (1,420,821) | (109,925) | | Total comprehensive loss for the period | (1,421,981) | (152,471) | | Basic loss per share (HK Cents) | (229.12) | (17.73) | | Loss per share from continuing operations (HK Cents) | (230.57) | (38.68) | [Interim Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets less current liabilities significantly decreased to HKD 1,755,043 thousand from HKD 3,208,562 thousand on December 31, 2024, with net assets also falling from HKD 3,037,991 thousand to HKD 1,616,010 thousand, mainly due to loss for the period and non-financial asset impairment Interim Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | | :--- | :--- | :--- | | Total non-current assets | 4,316,012 | 5,721,522 | | Total current assets | 128,084 | 159,686 | | Total current liabilities | 2,689,053 | 2,672,646 | | Net current liabilities | (2,560,969) | (2,512,960) | | Total assets less current liabilities | 1,755,043 | 3,208,562 | | Total non-current liabilities | 139,033 | 170,571 | | Net assets | 1,616,010 | 3,037,991 | | Total equity | 1,616,010 | 3,037,991 | [Notes to the Financial Statements](index=5&type=section&id=Notes%20to%20the%20Financial%20Statements) This section provides detailed explanations and breakdowns of the figures presented in the interim financial statements, including accounting policies, revenue, segment information, and significant financial events [1. Basis of Preparation](index=5&type=section&id=1.%20Basis%20of%20Preparation) The interim financial information is prepared in accordance with HKAS 34 and presented in HKD, with the company facing severe going concern uncertainties including a net current liability of HKD 2.56 billion, a loss for the period of HKD 1.42 billion, and HKD 2.057 billion in bank borrowings potentially callable due to loan covenant breaches, while actively seeking bank and controlling shareholder support and adjusting business strategy to focus on non-gaming operations for revenue growth and cost control - The company recorded **net current liabilities of approximately HKD 2,561,000,000** and a **net loss of approximately HKD 1,420,800,000** for the six months ended June 30, 2025[10](index=10&type=chunk) - The company failed to comply with loan covenants regarding minimum net assets and debt ratios, potentially leading to the immediate repayment of approximately **HKD 2,056,600,000 in bank borrowings**[11](index=11&type=chunk)[14](index=14&type=chunk) - The company's new service agreement with SJM Resorts will terminate on December 31, 2025, ceasing gaming operations, prompting a strategic shift to focus on non-gaming businesses, optimizing Macau Fisherman's Wharf facilities, enhancing experiences, and increasing flexibility for large-scale events to boost non-gaming revenue[10](index=10&type=chunk)[16](index=16&type=chunk) - The company is actively seeking waivers from banks for loan covenant breaches and requesting the controlling shareholder not to demand repayment of a **HKD 50,000,000 shareholder loan**, while also considering fundraising activities[16](index=16&type=chunk)[21](index=21&type=chunk) [2. Changes in Accounting Policies and Disclosures](index=8&type=section&id=2.%20Changes%20in%20Accounting%20Policies%20and%20Disclosures) This period's financial information adopts revised Hong Kong Financial Reporting Standards for the first time, with HKAS 21 (Amendment) "Lack of Exchangeability" having no impact on the interim condensed consolidated financial information as all the Group's transaction currencies are exchangeable - HKAS 21 (Amendment) "Lack of Exchangeability" has **no impact** on the interim condensed consolidated financial information[20](index=20&type=chunk) [3. Revenue](index=9&type=section&id=3.%20Revenue) For the six months ended June 30, 2025, total non-gaming revenue from continuing operations was HKD 168,128 thousand, a **7.6% decrease** from HKD 181,890 thousand in the prior year, with both hotel room and food and beverage revenues declining Revenue Analysis from Continuing Operations (For the six months ended June 30) | Revenue Source | 2025 (HKD Thousand) | 2024 (HKD Thousand) (Restated) | | :--- | :--- | :--- | | Hotel room revenue | 86,931 | 92,342 | | Building management services income | 13,249 | 11,275 | | Food and beverage | 46,548 | 49,770 | | Others | 1,129 | 5,282 | | Investment property franchise income | 20,271 | 23,221 | | Total non-gaming revenue | 168,128 | 181,890 | [4. Segment Information](index=9&type=section&id=4.%20Segment%20Information) The company categorizes its operations into gaming (discontinued operations) and non-gaming (continuing operations) segments; as of June 30, 2025, the gaming segment reported a loss of HKD 9,418 thousand, while the non-gaming segment incurred a loss of HKD 1,343,656 thousand, primarily due to significant impairment losses in the non-gaming segment, with gaming operations set to cease on December 31, 2025 - Gaming operations will terminate by December 31, 2025, with revenue recognized based on **gaming net win**[25](index=25&type=chunk) Revenue and Results Analysis by Operating and Reportable Segments for Continuing Operations (For the six months ended June 30) | Segment | 2025 Revenue (HKD Thousand) | 2025 Loss (HKD Thousand) | 2024 Revenue (HKD Thousand) (Restated) | 2024 Profit/(Loss) (HKD Thousand) (Restated) | | :--- | :--- | :--- | :--- | :--- | | Gaming | 175,072 | (9,418)* | 208,511 | 39,973 | | Non-gaming | 188,164 | (1,343,656) | 199,612 | (108,942) | | Consolidated Revenue | 343,200 | – | 390,401 | – | | Loss before tax from continuing operations | (1,463,115) | – | (243,082) | – | - The non-gaming segment loss includes significant impairment losses of **HKD 1,004,584 thousand for property and equipment** and **HKD 267,190 thousand for right-of-use assets**[26](index=26&type=chunk) [5. Impairment Losses on Non-financial Assets](index=12&type=section&id=5.%20Impairment%20Losses%20on%20Non-financial%20Assets) Due to the impending expiry of the new service agreement and SJM Resorts' decision not to renew gaming operations, the company conducted an impairment assessment on non-current non-financial assets of its Macau cash-generating unit, recording total impairment losses of HKD 1,272,227 thousand, primarily related to property and equipment and right-of-use assets Analysis of Impairment Losses on Non-financial Assets (For the six months ended June 30) | Impairment Item | 2025 (HKD Thousand) | | :--- | :--- | | Deposits paid | 453 | | Property and equipment | 1,004,584 | | Right-of-use assets | 267,190 | | Total impairment losses | 1,272,227 | - The impairment loss is primarily due to SJM Resorts' decision not to continue gaming operations at the Legend Palace Casino after the service agreement expires on **December 31, 2025**[29](index=29&type=chunk) [6. Finance Costs](index=13&type=section&id=6.%20Finance%20Costs) For the six months ended June 30, 2025, total finance costs from continuing operations decreased to HKD 73,698 thousand from HKD 93,159 thousand in the prior year, primarily due to lower interest on bank borrowings Analysis of Finance Costs (For the six months ended June 30) | Finance Cost Item | 2025 (HKD Thousand) | 2024 (HKD Thousand) (Restated) | | :--- | :--- | :--- | | Interest on bank borrowings | 59,136 | 72,311 | | Interest on other borrowings | 13,607 | 17,266 | | Interest on lease liabilities | 2,475 | 2,431 | | Amortisation of finance costs for bank borrowings and other finance costs | (1,520) | 1,151 | | Total finance costs | 73,698 | 93,159 | [7. Loss Before Tax](index=13&type=section&id=7.%20Loss%20Before%20Tax) Loss before tax from continuing operations is primarily influenced by factors such as depreciation of property and equipment, depreciation of right-of-use assets, and net franchise income from investment properties Components of Loss Before Tax (For the six months ended June 30) | Item | 2025 (HKD Thousand) | 2024 (HKD Thousand) (Restated) | | :--- | :--- | :--- | | Cost of inventories sold | 22,065 | 26,806 | | Depreciation of investment properties | 8,997 | 8,997 | | Depreciation of property and equipment | 87,829 | 127,367 | | Depreciation of right-of-use assets | 20,298 | 22,381 | | Loss on disposal of property and equipment | 47 | 9,978 | | Net franchise income from investment properties | (11,274) | (14,224) | [8. Income Tax Credit](index=14&type=section&id=8.%20Income%20Tax%20Credit) For the six months ended June 30, 2025, continuing operations recorded an income tax credit of HKD 33,326 thousand, a significant increase from HKD 3,243 thousand in the prior year Analysis of Income Tax Credit (For the six months ended June 30) | Item | 2025 (HKD Thousand) | 2024 (HKD Thousand) (Restated) | | :--- | :--- | :--- | | Deferred tax credit | 33,336 | 3,253 | | Total tax credit for the period from continuing operations | 33,326 | 3,243 | | Total tax expense for the period from discontinued operations | – | (15,481) | | Total tax credit/(expense) | 33,326 | (12,238) | [9. Discontinued Operations](index=14&type=section&id=9.%20Discontinued%20Operations) For the six months ended June 30, 2025, profit from discontinued operations was HKD 8,968 thousand, a significant decrease from HKD 129,914 thousand in the prior year, primarily due to reduced profit from Macau gaming-related operations and the completed disposal of the Laos business in May 2024 Profit for the Period from Discontinued Operations (For the six months ended June 30) | Discontinued Operations | 2025 (HKD Thousand) | 2024 (HKD Thousand) (Restated) | | :--- | :--- | :--- | | Discontinued Macau gaming-related operations | 8,968 | 54,879 | | Discontinued Laos operations | – | 75,035 | | Profit for the period from discontinued operations | 8,968 | 129,914 | - Macau gaming-related operations will cease upon the expiry of the new service agreement on **December 31, 2025**[35](index=35&type=chunk) - The Laos business was disposed of in **May 2024** to concentrate resources on Macau operations[39](index=39&type=chunk) [10. Dividends](index=17&type=section&id=10.%20Dividends) The Board of Directors decided not to declare any dividends for the 2025 interim period - The Board of Directors decided **not to declare any interim dividends** for the six months ended June 30, 2025 (2024: nil)[41](index=41&type=chunk) [11. Loss Per Share](index=18&type=section&id=11.%20Loss%20Per%20Share) For the six months ended June 30, 2025, basic loss per share significantly increased to HKD 229.12 cents from HKD 17.73 cents in the prior year, primarily due to the widening loss from continuing operations Calculation of Basic Loss Per Share (For the six months ended June 30) | Loss Source | 2025 (HKD Thousand) | 2024 (HKD Thousand) (Restated) | | :--- | :--- | :--- | | From continuing operations | (1,429,823) | (239,839) | | From discontinued Macau gaming-related operations | 9,002 | 54,879 | | From discontinued Laos operations | – | 75,035 | | Total loss | (1,420,821) | (109,925) | | Weighted average number of ordinary shares (Thousand Shares) | 620,119 | 620,119 | [12. Trade and Other Receivables, Deposits and Prepayments](index=19&type=section&id=12.%20Trade%20and%20Other%20Receivables,%20Deposits%20and%20Prepayments) As of June 30, 2025, total trade and other receivables, deposits, and prepayments were HKD 93,791 thousand, comparable to HKD 94,236 thousand on December 31, 2024, with **HKD 5,077 thousand** of trade receivables overdue for more than one year Trade and Other Receivables, Deposits and Prepayments (As of June 30) | Item | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | | :--- | :--- | :--- | | Trade receivables (net of impairment) | 58,583 | 59,345 | | Other receivables (net of impairment) | 15,707 | 18,277 | | Deposits and prepayments | 19,501 | 16,614 | | Total | 93,791 | 94,236 | Ageing Analysis of Trade Receivables (Net of impairment allowance) | Ageing | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | | :--- | :--- | :--- | | Within 3 months | 52,630 | 53,541 | | Over 1 year | 5,077 | 5,077 | [13. Trade and Other Payables](index=20&type=section&id=13.%20Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables increased to HKD 292,270 thousand from HKD 266,087 thousand on December 31, 2024, primarily due to an increase in other miscellaneous accrued expenses Trade and Other Payables (As of June 30) | Item | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | | :--- | :--- | :--- | | Trade payables | 41,304 | 33,837 | | Construction payables and retention money | 17,493 | 16,307 | | Other payables | 76,915 | 73,827 | | Tenant deposits received | 27,124 | 27,323 | | Accrued staff costs | 37,464 | 37,203 | | Other miscellaneous accrued expenses | 91,970 | 77,590 | | Total | 292,270 | 266,087 | [14. Comparative Amounts](index=20&type=section&id=14.%20Comparative%20Amounts) Comparative figures in the unaudited condensed consolidated statement of profit or loss and other comprehensive income have been restated to reflect discontinued operations as if they had been discontinued at the beginning of the comparative period - Comparative figures have been **restated** to reflect the impact of discontinued operations[49](index=49&type=chunk) [Independent Auditor's Report](index=21&type=section&id=Independent%20Auditor's%20Report) This section contains the independent auditor's assessment of the interim financial information, including a disclaimer of conclusion due to significant going concern uncertainties [Basis for Disclaimer of Conclusion](index=21&type=section&id=Basis%20for%20Disclaimer%20of%20Conclusion) The auditor is unable to express a conclusion due to multiple going concern uncertainties, including substantial net current liabilities, a loss for the period, bank borrowings potentially callable due to covenant breaches, and the impending termination of the gaming service agreement; despite management's proposed plans, their successful implementation remains highly uncertain - The auditor cannot conclude on the appropriateness of the going concern basis due to significant uncertainties, including **net current liabilities of HKD 2,561,000,000**, a **loss for the period of HKD 1,420,800,000**, and **HKD 2,056,600,000 in bank borrowings** potentially callable due to loan covenant breaches[50](index=50&type=chunk)[51](index=51&type=chunk) - The company's operations providing services to gaming operators will cease upon the service agreement's expiry on **December 31, 2025**, further exacerbating going concern uncertainties[50](index=50&type=chunk) - The validity of the going concern assumption hinges on the company's ability to successfully change its business strategy, secure ongoing support from creditor banks and the controlling shareholder, and timely complete fundraising activities[51](index=51&type=chunk) [Disclaimer of Conclusion](index=22&type=section&id=Disclaimer%20of%20Conclusion) Due to the potential interplay and cumulative impact of various uncertainties related to going concern, the auditor is unable to express a conclusion on the interim financial information - The auditor cannot form a conclusion on the interim financial information due to the potential interplay and cumulative impact of various uncertainties related to going concern on the interim financial information[52](index=52&type=chunk) [Management Discussion and Analysis](index=22&type=section&id=Management%20Discussion%20and%20Analysis) This section offers management's perspective on the company's interim financial performance, operational highlights, future outlook, liquidity, and human resources [Interim Results Overview](index=22&type=section&id=Interim%20Results%20Overview) For the six months ended June 30, 2025, revenue from gaming services (discontinued operations) decreased by **16.0% year-on-year to HKD 175.1 million**, while total non-gaming revenue (continuing operations) decreased by **7.6% year-on-year to HKD 168.1 million**, primarily due to declines in hotel room and food and beverage revenues Performance of Gaming Services (Discontinued Operations) (For the six months ended June 30) | Indicator | 2025 (HKD Thousand) | 2024 (HKD Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Rolling chip turnover | 2,438,411 | 2,171,282 | 12.3 | | Net win | 318,312 | 379,111 | (16.0) | | Win rate | 13.05% | 17.46% | (4.4) | | Reported revenue | 175,072 | 208,511 | (16.0) | Revenue Composition of Non-Gaming (Continuing Operations) (For the six months ended June 30) | Revenue Source | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Hotel room revenue | 86,931 | 92,342 | | Investment property franchise income | 20,271 | 23,221 | | Building management services income | 13,249 | 11,275 | | Food and beverage | 46,548 | 49,770 | | Others | 1,129 | 5,282 | | Total | 168,128 | 181,890 | Key Hotel Operating Data (For the six months ended June 30) | Hotel | 2025 Occupancy Rate (%) | 2025 Average Daily Rate (HKD) | 2025 Revenue Per Available Room (HKD) | | :--- | :--- | :--- | :--- | | Legend Palace Hotel | 91.7 | 942 | 855 | | Harbourview Hotel | 88.8 | 766 | 680 | | Hotel | 2024 Occupancy Rate (%) | 2024 Average Daily Rate (HKD) | 2024 Revenue Per Available Room (HKD) | | :--- | :--- | :--- | :--- | | Legend Palace Hotel | 90.8 | 951 | 863 | | Harbourview Hotel | 89.1 | 779 | 694 | [Adjusted EBITDA](index=24&type=section&id=Adjusted%20EBITDA) For the six months ended June 30, 2025, the company's total adjusted EBITDA significantly decreased to HKD 34,694 thousand from HKD 106,791 thousand in the prior year, with adjusted EBITDA from continuing operations shifting from a profit of HKD 18,700 thousand to a loss of approximately HKD 100 thousand, mainly due to a reduction in property tax accrual reversals Reconciliation of Adjusted EBITDA to Profit/(Loss) for the Period (For the six months ended June 30, 2025) | Item | Discontinued Macau Gaming-Related Operations (HKD Thousand) | Continuing Operations (HKD Thousand) | Total (HKD Thousand) | | :--- | :--- | :--- | :--- | | Profit/(Loss) for the period | 8,968 | (1,429,789) | (1,420,821) | | Finance costs | 4,066 | 73,698 | 77,764 | | Depreciation and amortisation | 5,653 | 117,124 | 122,777 | | Impairment losses | 16,003 | 1,272,246 | 1,288,249 | | Income tax credit | – | (33,326) | (33,326) | | Adjusted EBITDA | 34,819 | (125) | 34,694 | Reconciliation of Adjusted EBITDA to Profit/(Loss) for the Period (For the six months ended June 30, 2024) | Item | Discontinued Macau Gaming-Related Operations (HKD Thousand) | Discontinued Laos Operations (HKD Thousand) | Continuing Operations (HKD Thousand) | Total (HKD Thousand) | | :--- | :--- | :--- | :--- | :--- | | Profit/(Loss) for the period | 54,879 | 75,035 | (239,839) | (109,925) | | Finance costs | 4,089 | 138 | 93,159 | 97,386 | | Depreciation and amortisation | 7,275 | 9,865 | 158,746 | 175,076 | | Impairment losses | 4 | (81) | 31 | (46) | | Income tax expense/(credit) | 385 | 15,096 | (3,243) | 12,238 | | Gain on disposal of Laos operations | – | (77,912) | – | (77,912) | | Adjusted EBITDA | 66,640 | 21,465 | 18,686 | 106,791 | - Adjusted EBITDA from continuing operations recorded a **loss of approximately HKD 100 thousand**, a decrease of approximately **HKD 18,800 thousand** compared to a profit of approximately HKD 18,700 thousand in the prior period, primarily due to a **HKD 15,300 thousand reversal of property tax accruals** in the prior period that was not recorded this period[63](index=63&type=chunk) [Dividends](index=27&type=section&id=Dividends) The Board of Directors decided not to declare any interim dividends for the six months ended June 30, 2025 - The Board of Directors will **not declare any interim dividends** for the six months ended June 30, 2025 (2024: nil)[65](index=65&type=chunk) [Outlook](index=27&type=section&id=Outlook) The company maintains a cautiously optimistic outlook on Macau's tourism, retail, and F&B sectors, noting increased visitor numbers but decreased hotel occupancy and retail sales; with gaming operations ceasing by end-2025, the company aims to mitigate impact by optimizing Macau Fisherman's Wharf facilities, enhancing outdoor entertainment, and developing sports spaces to focus on non-gaming businesses - Macau's total visitor arrivals increased by **15.0%** from **16.7 million** in the first two quarters of 2024 to **19.2 million** in the same period of 2025[66](index=66&type=chunk) - Monthly average hotel occupancy rates only increased by approximately **5.1%**, while total retail sales decreased by **8.9%**, indicating a more rational consumption pattern among tourists and locals[66](index=66&type=chunk) - The gaming service agreement will **not be renewed** upon its expiry on **December 31, 2025**, which is expected to impact the company but will be mitigated by improving non-gaming business revenue[66](index=66&type=chunk) - The company will continue to allocate resources to optimize Macau Fisherman's Wharf facilities, enhance the waterfront integrated resort experience, and explore further synergies, including hosting large-scale events, to advance Macau's goals as a "City of Performing Arts" and "City of Sports"[68](index=68&type=chunk) [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company's net assets decreased by approximately HKD 1,422,000 thousand to HKD 1,616,000 thousand, primarily due to the loss for the period; cash and bank balances were HKD 21,700 thousand, while total outstanding borrowings were approximately HKD 2,396,000 thousand, with the net gearing ratio significantly rising from **77.4%** on December 31, 2024, to **146.8%**, reflecting increased liquidity pressure - As of June 30, 2025, the consolidated net assets attributable to owners of the company were approximately **HKD 1,616,000,000**, a decrease of approximately **HKD 1,422,000,000** from December 31, 2024[69](index=69&type=chunk) - Cash and bank balances were approximately **HKD 21,700,000**, while total outstanding borrowings were approximately **HKD 2,396,000,000**[10](index=10&type=chunk)[70](index=70&type=chunk)[71](index=71&type=chunk) - The net gearing ratio significantly increased from **77.4%** on December 31, 2024, to **146.8%** on June 30, 2025[73](index=73&type=chunk) - Certain company assets, including investment properties, buildings, right-of-use assets, trade receivables, and bank deposits, have been **pledged to secure credit facilities and electricity**[72](index=72&type=chunk) [Purchase, Sale or Redemption of Listed Shares](index=29&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20Listed%20Shares) For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any listed shares - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries **purchased, sold, or redeemed any shares**[74](index=74&type=chunk) [Employees and Remuneration Policy](index=29&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had approximately 1,140 employees, with about 325 in gaming operations whose salaries are paid by SJM Resorts but monitored and fully reimbursed by the Group; the company is committed to maintaining a stable workforce, with remuneration policies based on qualifications, performance, experience, and market trends, offering benefits like retirement and medical subsidies - As of June 30, 2025, the Group had a total of approximately **1,140 employees**, of whom approximately **325 were gaming operations employees**[75](index=75&type=chunk) - Employee remuneration is determined by individual qualifications, job performance, industry experience, responsibilities, and relevant market trends, with various benefits provided[75](index=75&type=chunk) [Corporate Governance](index=30&type=section&id=Corporate%20Governance) This section outlines the company's adherence to corporate governance principles and explains any deviations from the established code [Compliance with Corporate Governance Code](index=30&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) For the six months ended June 30, 2025, the company has complied with the Corporate Governance Code, with the exception of Code Provision C.2.1 - The company has complied with the Corporate Governance Code for the six months ended June 30, 2025, **except for Code Provision C.2.1**[76](index=76&type=chunk) [Code Provision C.2.1](index=30&type=section&id=Code%20Provision%20C.2.1) Mr. Li Chi Keung serves concurrently as the company's Chairman and Chief Executive Officer, deviating from the Corporate Governance Code's requirement for distinct roles; the Board believes this structure provides strong and consistent leadership with sufficient safeguards to ensure a balance of power - Mr. Li Chi Keung concurrently holds the roles of Chairman of the Board and Chief Executive Officer, deviating from **Code Provision C.2.1** of the Corporate Governance Code[77](index=77&type=chunk) - The Board believes this structure provides **strong and consistent leadership**, with sufficient safeguards ensured by the balanced composition of executive and independent non-executive directors on the Board and oversight by various committees[77](index=77&type=chunk) [Events After Reporting Period](index=30&type=section&id=Events%20After%20Reporting%20Period) Other than those disclosed in this announcement, there were no significant events after the reporting period requiring adjustment to the financial statements or materially impacting the Group's current condition - There were **no other significant events** after the reporting period requiring adjustment to the financial statements or materially impacting the Group's current condition[78](index=78&type=chunk) [Review of Unaudited Interim Condensed Consolidated Financial Information](index=31&type=section&id=Review%20of%20Unaudited%20Interim%20Condensed%20Consolidated%20Financial%20Information) The company's unaudited interim condensed consolidated financial information for the six months ended June 30, 2025, has been reviewed by the Audit Committee and by the independent auditor in accordance with Hong Kong Standard on Review Engagements 2410; the Audit Committee believes the interim results comply with relevant accounting standards, rules, and regulations - The interim condensed consolidated financial information has been **reviewed by the Audit Committee** and by the independent auditor in accordance with **Hong Kong Standard on Review Engagements 2410**[79](index=79&type=chunk) - The Audit Committee believes the interim results comply with relevant accounting standards, rules, and regulations, and have been **appropriately disclosed**[79](index=79&type=chunk) [Definitions](index=31&type=section&id=Definitions) This section provides key terms and their definitions used in this announcement to ensure consistent understanding of the report's content [Board of Directors](index=33&type=section&id=Board%20of%20Directors) This section lists the company's Board of Directors members as of the announcement date, including executive, non-executive, and independent non-executive directors - As of the date of this announcement, the executive directors are Mr. Li Chi Keung and Ms. Lam Shu Yan; the non-executive directors are Ms. Ho Chiu Lin, Mr. Li Chun Tak, and Mr. Wong Chi Man; and the independent non-executive directors are Mr. Lau Yee Keung, Mr. Mak Ka Wing, and Ms. Ma Cheuk Ling[82](index=82&type=chunk)