[Company Information and Financial Summary](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF%E4%B8%8E%E8%B4%A2%E5%8A%A1%E6%91%98%E8%A6%81) [Company Overview](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E6%A6%82%E8%A7%88) Duiba Group Limited (Stock Code: 1753) announced its unaudited interim results for the six months ended June 30, 2025, with the company incorporated in the Cayman Islands and listed on the Main Board of the Hong Kong Stock Exchange - Duiba Group Limited (Stock Code: 1753) announced its unaudited interim results for the six months ended June 30, 2025[2](index=2&type=chunk)[3](index=3&type=chunk) - The company was incorporated in the Cayman Islands, and its shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on May 7, 2019[3](index=3&type=chunk)[14](index=14&type=chunk) [Summary of Financial Information](index=1&type=section&id=%E8%B4%A2%E5%8A%A1%E8%B5%84%E6%96%99%E6%91%98%E8%A6%81) For the six months ended June 30, 2025, the company's total revenue decreased by **23.7%** year-on-year, primarily due to lower revenue from user operation SaaS platform business and internet advertising business Summary of Financial Information for the Six Months Ended June 30 | Indicator | 2025 (thousands of RMB) | 2024 (thousands of RMB) | | :--- | :--- | :--- | | Revenue from User Operation SaaS Platform Business | 89,574 | 116,965 | | Revenue from Internet Advertising Business | 230,251 | 318,169 | | Other Revenue | 29,798 | 23,125 | | **Total Revenue** | **349,623** | **458,259** | | **Year-on-Year Change in Revenue** | **-23.7%** | - | - The company's revenue for the six months ended June 30, 2025, decreased by approximately **23.7%** compared to the same period in 2024[3](index=3&type=chunk) [Non-HKFRS Measures](index=1&type=section&id=%E9%9D%9E%E9%A6%99%E6%B8%AF%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A%E5%87%86%E5%88%99%E8%AE%A1%E9%87%8F%E6%8C%87%E6%A0%87) The company uses "adjusted loss for the period" as a non-HKFRS measure to supplement its condensed consolidated financial statements, reflecting operating performance by adding back share-based payments, with an adjusted loss of **RMB 24,522 thousand** for H1 2025, widening year-on-year - The company uses "adjusted loss for the period," a non-HKFRS measure, as an additional financial indicator to eliminate the impact of items not reflecting operating performance[4](index=4&type=chunk) Adjusted Loss for the Period | Indicator | 2025 (thousands of RMB) | 2024 (thousands of RMB) | | :--- | :--- | :--- | | Loss for the period | (26,728) | (19,078) | | Add: Share-based payments | 2,206 | 1,465 | | **Adjusted Loss for the Period** | **(24,522)** | **(17,613)** | - Adjusted loss for the period is defined as loss for the period plus share-based payments, and is not a measure required or presented under HKFRS[5](index=5&type=chunk) [Unaudited Interim Condensed Consolidated Financial Statements](index=3&type=section&id=%E6%9C%AA%E7%BB%8F%E5%AE%A1%E6%A0%B8%E4%B8%AD%E6%9C%9F%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=%E7%BB%BC%E5%90%88%E6%8D%9F%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the company recorded a loss for the period of **RMB 26,728 thousand**, a wider loss compared to the prior year, with basic and diluted loss per share of **RMB 2.5 cents** Summary of Consolidated Statement of Profit or Loss and Other Comprehensive Income for the Six Months Ended June 30 | Indicator | 2025 (thousands of RMB) | 2024 (thousands of RMB) | | :--- | :--- | :--- | | Revenue | 349,623 | 458,259 | | Cost of Sales | (292,373) | (396,757) | | Gross Profit | 57,250 | 61,502 | | Other Income and Gains | 35,927 | 29,270 | | Selling and Distribution Expenses | (46,547) | (41,305) | | Administrative Expenses | (49,916) | (52,521) | | Net Impairment Loss on Financial Assets | (10,581) | (9,211) | | Other Expenses | (1,398) | (167) | | Finance Costs | (9,644) | (6,919) | | Share of Loss of an Associate (net of tax) | (1,439) | (176) | | Loss Before Tax | (26,348) | (19,527) | | Income Tax (Expense) / Credit | (380) | 449 | | **Loss for the Period** | **(26,728)** | **(19,078)** | | Total Comprehensive Loss for the Period | (28,822) | (15,885) | | Loss per Share Attributable to Ordinary Equity Holders of the Parent (RMB) | (0.025) | (0.018) | [Consolidated Statement of Financial Position](index=5&type=section&id=%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5%E8%A1%A8) As of June 30, 2025, the company's total equity was **RMB 1,298,619 thousand**, a slight decrease from the end of 2024, with net current assets remaining high but interest-bearing bank borrowings significantly increasing Summary of Consolidated Statement of Financial Position as of June 30 | Indicator | 2025 (thousands of RMB) | 2024 (thousands of RMB) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 4,960 | 2,171 | | Investment in an Associate | 234,373 | 234,922 | | Total Non-current Assets | 306,989 | 401,547 | | **Current Assets** | | | | Trade Receivables | 805,249 | 723,783 | | Prepayments, Other Receivables and Other Assets | 379,091 | 584,592 | | Cash and Cash Equivalents | 433,393 | 280,750 | | Total Current Assets | 2,221,797 | 1,969,233 | | **Current Liabilities** | | | | Trade Payables | 90,549 | 82,207 | | Interest-bearing Bank Borrowings | 855,815 | 667,164 | | Total Current Liabilities | 1,229,668 | 1,044,168 | | **Net Current Assets** | **992,129** | **925,065** | | **Total Equity** | **1,298,619** | **1,325,235** | [Consolidated Statement of Cash Flows](index=7&type=section&id=%E7%BB%BC%E5%90%88%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the six months ended June 30, 2025, net cash flows from operating activities turned into a net inflow of **RMB 86.0 million**, primarily due to a decrease in prepayments, with cash and cash equivalents significantly increasing at period-end Summary of Consolidated Statement of Cash Flows for the Six Months Ended June 30 | Indicator | 2025 (thousands of RMB) | 2024 (thousands of RMB) | | :--- | :--- | :--- | | Net Cash Flows from / (Used in) Operating Activities | 86,000 | (374,925) | | Net Cash Flows (Used in) / from Investing Activities | 165,020 | (94,154) | | Net Cash Flows from Financing Activities | 161,571 | 153,264 | | Net Increase / (Decrease) in Cash and Cash Equivalents | 153,417 | (56,641) | | Cash and Cash Equivalents at End of Period | 433,393 | 232,033 | - Net cash inflow from operating activities was **RMB 86.0 million**, compared to a net cash outflow from operating activities of **RMB 374.9 million** in H1 2024, primarily due to a decrease in prepayments as of June 30, 2025, compared to the balance as of December 31, 2024[11](index=11&type=chunk)[55](index=55&type=chunk) [Notes to the Unaudited Interim Condensed Consolidated Financial Information](index=10&type=section&id=%E6%9C%AA%E7%BB%8F%E5%AE%A1%E6%A0%B8%E4%B8%AD%E6%9C%9F%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E8%B5%84%E6%96%99%E9%99%84%E6%B3%A8) [Company Information and Basis of Preparation](index=10&type=section&id=%E5%85%AC%E5%8F%B8%E8%B5%84%E6%96%99%E4%B8%8E%E7%BC%96%E5%88%B6%E5%9F%BA%E5%87%86) Duiba Group Limited is an investment holding company incorporated in the Cayman Islands, with subsidiaries primarily engaged in user operation SaaS platform and internet advertising businesses, and interim financial information is prepared in RMB under HKAS 34 - The Company is an investment holding company, and its subsidiaries are principally engaged in user operation Software as a Service (SaaS) platform business and internet advertising business[14](index=14&type=chunk) - The unaudited interim condensed consolidated financial information has been prepared in accordance with Hong Kong Accounting Standard 34 Interim Financial Reporting and is presented in RMB[15](index=15&type=chunk) [Changes in Accounting Policies and Disclosures](index=10&type=section&id=%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%8F%8A%E6%8A%AB%E9%9C%B2%E5%8F%98%E5%8A%A8) This period's financial information first adopted amendments to HKFRS accounting standards, with amendments to HKAS 21 regarding lack of exchangeability having no impact on the interim condensed consolidated financial information - The accounting policies adopted in preparing the unaudited interim condensed consolidated financial information are consistent with those applied in the preparation of the Group’s annual consolidated financial statements for the year ended December 31, 2024, except for the adoption of amendments to HKFRS accounting standards issued by the Hong Kong Institute of Certified Public Accountants for the first time for the current period’s financial information[16](index=16&type=chunk) - The amendments to HKAS 21 regarding lack of exchangeability have no impact on the interim condensed consolidated financial information as the currencies in which the Group transacts are exchangeable into the presentation currency[17](index=17&type=chunk) [Operating Segment Information](index=11&type=section&id=%E7%BB%8F%E8%90%A5%E5%88%86%E9%83%A8%E8%B5%84%E6%96%99) The Group has only one reportable operating segment, with all revenue and non-current assets derived from China; during the reporting period, the top two customers contributed significantly to revenue, but the third largest customer's revenue fell below the **10%** disclosure threshold - The Group does not classify its business units by product, but has only one reportable operating segment[18](index=18&type=chunk) - All of the Group’s revenue is derived from customers in China, and all non-current assets are located in China[19](index=19&type=chunk) Major Customer Revenue Contribution | Customer | 2025 (thousands of RMB) | 2024 (thousands of RMB) | | :--- | :--- | :--- | | Customer 1 | 59,484 | 68,140 | | Customer 2 | 55,768 | 62,437 | | Customer 3 | Not applicable* | 46,327 | *The corresponding revenue from this customer is not disclosed as it did not individually account for 10% or more of the Group's revenue during the reporting period. [Revenue, Other Income and Gains](index=11&type=section&id=%E6%94%B6%E5%85%A5%E3%80%81%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A) The Group's revenue primarily comes from user operation SaaS platform and internet advertising businesses, both of which saw year-on-year declines in H1 2025, while other income and gains mainly include interest income and government grants Revenue Analysis | Business | 2025 (thousands of RMB) | 2024 (thousands of RMB) | | :--- | :--- | :--- | | User Operation SaaS Platform Business | 89,574 | 116,965 | | Internet Advertising Business | 230,251 | 318,169 | | Other | 29,798 | 23,125 | | **Total** | **349,623** | **458,259** | Other Income and Gains | Item | 2025 (thousands of RMB) | 2024 (thousands of RMB) | | :--- | :--- | :--- | | Interest Income | 7,392 | 13,224 | | Government Grants | 20,134 | 11,594 | | Investment Income from Financial Assets at Fair Value Through Profit or Loss | 7,239 | 87 | | **Total** | **35,927** | **29,270** | [Loss Before Tax](index=13&type=section&id=%E7%A8%85%E5%89%8D%E8%99%A7%E6%8D%9F) The Group's loss before tax is primarily affected by cost of sales, selling and distribution expenses, administrative expenses, net impairment loss on financial assets, and R&D costs, with both net impairment loss on financial assets and finance costs increasing in H1 2025 Major Deductions / (Additions) to Loss Before Tax | Item | 2025 (thousands of RMB) | 2024 (thousands of RMB) | | :--- | :--- | :--- | | Cost of Inventories Sold | 58,646 | 89,899 | | Cost of Services Provided | 233,727 | 306,858 | | Depreciation of Property, Plant and Equipment | 327 | 1,069 | | Net Impairment Loss on Financial Assets | 10,581 | 9,211 | | Research and Development Costs | 22,892 | 23,802 | | Employee Benefit Expenses | 66,771 | 64,878 | - Amortisation of intangible assets for the six months ended June 30, 2025, is included in "Administrative expenses"[25](index=25&type=chunk) - Net fair value loss on financial assets at fair value through profit or loss is included in "Other expenses"[26](index=26&type=chunk) [Income Tax](index=14&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85) The Group's income tax expense consists mainly of current tax and deferred tax, with a total tax expense of **RMB 380 thousand** for H1 2025, compared to a credit in the prior year Total Income Tax Expense / (Credit) for the Period | Item | 2025 (thousands of RMB) | 2024 (thousands of RMB) | | :--- | :--- | :--- | | Current Tax | (1,089) | 613 | | Deferred Tax | 1,469 | (1,062) | | **Total Income Tax Expense / (Credit) for the Period** | **380** | **(449)** | - The current tax credit for the six months ended June 30, 2025, was due to adjustments to the provisional tax calculation for the previous year resulting from the application of revised tax rates[28](index=28&type=chunk) [Dividends](index=14&type=section&id=%E8%82%A1%E6%81%AF) The Board does not recommend the declaration of any interim dividend for the reporting period - The Board does not recommend the declaration of any interim dividend for the reporting period (for the six months ended June 30, 2024: nil)[29](index=29&type=chunk) [Loss Per Share Attributable to Ordinary Equity Holders of the Parent](index=14&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%99%AE%E9%80%9A%E6%9D%83%E7%9B%8A%E6%8C%81%E6%9C%89%E4%BA%BA%E5%BA%94%E5%8D%A0%E6%AF%8F%E8%82%A1%E4%B8%B5%E6%8D%9F) For H1 2025, basic loss per share attributable to ordinary equity holders of the parent was **RMB 2.5 cents**, a widening of the loss from **RMB 1.8 cents** in the prior year Loss Per Share Calculation | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Loss attributable to ordinary equity holders of the parent for basic and diluted loss per share calculation (RMB) | (26,728,000) | (19,078,000) | | Weighted average number of ordinary shares in issue for basic loss per share calculation | 1,067,437,500 | 1,063,154,500 | | **Basic and Diluted Loss Per Share (RMB)** | **(0.025)** | **(0.018)** | [Property, Plant and Equipment](index=15&type=section&id=%E7%89%A9%E4%B8%9A%E3%80%81%E5%8E%82%E6%88%BF%E5%8F%8A%E8%AE%BE%E5%A4%87) As of June 30, 2025, the carrying amount of the company's property, plant and equipment increased to **RMB 4,960 thousand**, primarily due to increased additions during the period Changes in Carrying Amount of Property, Plant and Equipment | Item | 2025 (thousands of RMB) | 2024 (thousands of RMB) | | :--- | :--- | :--- | | Carrying Amount at Beginning of Period/Year | 2,171 | 2,796 | | Additions | 3,131 | 1,100 | | Depreciation Charged During Period/Year | (327) | (1,632) | | Disposals | (15) | (93) | | **Carrying Amount at End of Period/Year** | **4,960** | **2,171** | [Investment in an Associate](index=15&type=section&id=%E6%96%BC%E4%B8%80%E9%96%93%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E4%B9%8B%E6%8A%95%E8%B3%87) As of June 30, 2025, the Group held a **19%** equity interest in Zhejiang Gushang Intelligent Technology Co., Ltd., with a carrying amount of **RMB 234,373 thousand**, primarily engaged in project operations Investment in an Associate | Indicator | 2025 (thousands of RMB) | 2024 (thousands of RMB) | | :--- | :--- | :--- | | Investment in an Associate | 234,373 | 234,922 | | **Company Name** | **Zhejiang Gushang Intelligent Technology Co., Ltd.** | | | **Group's Share of Ownership Interest Percentage** | **19%** | | | **Principal Business** | **Project Operations** | | [Trade Receivables](index=15&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, net trade receivables were **RMB 805,249 thousand**, an increase from the end of 2024, with credit terms mainly 30 to 90 days and overdue balances regularly reviewed by senior management Trade Receivables | Indicator | 2025 (thousands of RMB) | 2024 (thousands of RMB) | | :--- | :--- | :--- | | Trade Receivables | 877,502 | 785,455 | | Less: Impairment of Trade Receivables | (72,253) | (61,672) | | **Net Amount** | **805,249** | **723,783** | - Trade receivables are non-interest bearing, with credit terms mainly 30 to 90 days, and overdue balances are regularly reviewed by senior management[34](index=34&type=chunk) Aging Analysis of Trade Receivables | Aging | 2025 (thousands of RMB) | 2024 (thousands of RMB) | | :--- | :--- | :--- | | 0 to 30 Days | 217,897 | 354,265 | | 31 to 90 Days | 231,012 | 178,194 | | 91 to 180 Days | 192,010 | 47,071 | | 181 to 365 Days | 109,842 | 129,118 | | 1 to 2 Years | 54,488 | 15,135 | | **Total** | **805,249** | **723,783** | [Trade Payables](index=16&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, trade payables were **RMB 90,549 thousand**, an increase from the end of 2024, are interest-free, and generally settled within 60 days Trade Payables | Indicator | 2025 (thousands of RMB) | 2024 (thousands of RMB) | | :--- | :--- | :--- | | Trade Payables | 90,549 | 82,207 | Aging Analysis of Trade Payables | Aging | 2025 (thousands of RMB) | 2024 (thousands of RMB) | | :--- | :--- | :--- | | 0 to 180 Days | 42,434 | 51,571 | | 181 to 365 Days | 22,878 | 3,555 | | 1 to 2 Years | 5,120 | 6,897 | | 2 to 3 Years | 8,057 | 8,028 | | Over 3 Years | 12,060 | 12,156 | | **Total** | **90,549** | **82,207** | - Trade payables are interest-free and generally settled within 60 days[37](index=37&type=chunk) [Share Capital](index=16&type=section&id=%E8%82%A1%E6%9C%AC) As of June 30, 2025, the company's number of issued shares was **1,076,823,200**, with share capital and share premium remaining stable Overview of Share Capital Changes | Item | Number of Shares | Share Capital (thousands of RMB) | Share Premium (thousands of RMB) | Total (thousands of RMB) | | :--- | :--- | :--- | :--- | :--- | | As of December 31, 2024, January 1, 2025, and June 30, 2025 | 1,076,823,200 | 70 | 1,942,530 | 1,942,600 | [Management Discussion and Analysis](index=17&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E5%8F%8A%E5%88%86%E6%9E%90) [Business Review](index=17&type=section&id=%E4%B8%9A%E5%8A%A1%E5%9B%9E%E9%A1%BE) Duiba Group is a leading user operation SaaS service provider and internet advertising platform operator in China, offering full-lifecycle operation services to customers in finance and internet industries; during this period, both paid customer numbers and new contract value for SaaS platform business decreased, and internet advertising revenue also significantly reduced - The Company is a leading user operation Software as a Service (SaaS) service provider and internet advertising platform operator in China, providing full-lifecycle operation services for user growth, activity retention, and traffic monetization to tens of thousands of customers[40](index=40&type=chunk) [User Operation SaaS Platform Business](index=17&type=section&id=%E7%94%A8%E6%88%B7%E8%BF%90%E8%90%A5SaaS%E5%B9%B3%E5%8F%B0%E4%B8%9A%E5%8A%A1) The user operation SaaS platform business aims to help enterprises attract and retain online users through various tools; as of June 30, 2025, both paid customer numbers and new contract value decreased year-on-year, leading to a **23.4%** reduction in business revenue - As of June 30, 2025, the number of paying customers using fee-based user operation SaaS services was **487** (H1 2024: **531**), including **128** financial industry customers (H1 2024: **170**)[42](index=42&type=chunk) - For the six months ended June 30, 2025, the number of new contracts (including renewals) for the user operation SaaS platform business reached **177** (H1 2024: **224**), with a total value of **RMB 50.4 million** (H1 2024: **RMB 75.5 million**)[42](index=42&type=chunk) User Operation SaaS Platform Business Financial Performance | Indicator | 2025 (thousands of RMB) | 2024 (thousands of RMB) | | :--- | :--- | :--- | | Revenue | 89,574 | 116,965 | | Cost of Sales | (61,547) | (98,244) | | Selling and Distribution Expenses | (25,832) | (22,365) | | Administrative Expenses (excluding R&D expenses) | (11,543) | (15,596) | | Research and Development Expenses | (16,692) | (14,203) | | **Segment Loss** | **(26,040)** | **(33,443)** | [Internet Advertising Business](index=18&type=section&id=%E4%BA%92%E8%81%94%E7%B6%B2%E5%BB%A3%E5%91%8A%E6%A5%AD%E5%8B%99) The Group's internet advertising business aggregates App scenario traffic, systematically operates activity content, and monetizes large-scale traffic using big data and AI technology; for H1 2025, revenue from this business decreased by approximately **27.6%**, primarily charged under the CPC model - The Group's internet advertising business aggregates traffic from various App scenarios, systematically operates activity content, and monetizes large-scale traffic through advertising[45](index=45&type=chunk) - For the six months ended June 30, 2025, revenue from the internet advertising business decreased by approximately **27.6%** to **RMB 230.3 million** (H1 2024: **RMB 318.2 million**)[46](index=46&type=chunk) - Most revenue is derived from the CPC (cost-per-click) model, where charges are incurred only when viewers interact with advertising tools and are directed to the advertiser's designated page[45](index=45&type=chunk) [Research and Development](index=19&type=section&id=%E7%A0%94%E5%8F%91) As of June 30, 2025, the R&D department had **133** employees, accounting for **26.7%** of the Group's total employees, with R&D expenses slightly decreasing year-on-year - As of June 30, 2025, the number of employees in the R&D department was **133** (June 30, 2024: **145**), accounting for approximately **26.7%** of the Group's total employees (June 30, 2024: approximately **33.4%**)[47](index=47&type=chunk) - The Group's R&D expenses decreased by approximately **3.8%** from **RMB 23.8 million** in H1 2024 to **RMB 22.9 million** in H1 2025[47](index=47&type=chunk) [Financial Review](index=19&type=section&id=%E8%B4%A2%E5%8A%A1%E5%9B%9E%E9%A1%BE) Affected by industry uncertainties, the Group's total revenue for H1 2025 decreased by **23.7%** year-on-year, gross profit declined by **6.8%**, and loss for the period widened; however, operating cash flow turned positive, while the gearing ratio increased - In H1 2025, due to the continuous uncertainty in industry growth, advertisers' budget plans became more conservative, leading to a further reduction in the scale of the internet advertising business and a further decline in the company's profitability[48](index=48&type=chunk) [Revenue](index=19&type=section&id=%E6%94%B6%E5%85%A5) For the six months ended June 30, 2025, the Group's total revenue was **RMB 349.6 million**, a **23.7%** year-on-year decrease, primarily due to reduced revenue from internet advertising and user operation SaaS platform businesses - For the six months ended June 30, 2025, the Group recorded total revenue of **RMB 349.6 million**, a decrease of approximately **23.7%** compared to **RMB 458.3 million** in H1 2024[49](index=49&type=chunk) - Revenue from the internet advertising business decreased by approximately **27.6%** to **RMB 230.3 million**, and revenue from the user operation SaaS platform business decreased by approximately **23.4%** to **RMB 89.6 million**[49](index=49&type=chunk) [Gross Profit](index=20&type=section&id=%E6%AF%9B%E5%88%A9) For H1 2025, the Group's gross profit was **RMB 57.3 million**, a **6.8%** year-on-year decrease, while the gross profit margin improved to **16.4%**, mainly due to higher gross profit margins in both user operation SaaS platform and internet advertising businesses - For the six months ended June 30, 2025, the Group recorded gross profit of **RMB 57.3 million**, a decrease of approximately **6.8%** compared to **RMB 61.5 million** in H1 2024[50](index=50&type=chunk) - The gross profit margin was approximately **16.4%** (H1 2024: approximately **13.4%**), with gross profit margins for user operation SaaS platform business and internet advertising business being approximately **31.3%** and **8.4%** respectively (H1 2024: approximately **16.0%** and **6.5%** respectively)[50](index=50&type=chunk) [Selling and Distribution Expenses](index=20&type=section&id=%E9%94%80%E5%94%AE%E5%8F%8A%E5%88%86%E9%94%80%E5%BC%80%E6%94%AF) For H1 2025, selling and distribution expenses increased by **12.6%** to **RMB 46.5 million**, with its percentage of total revenue rising to **13.3%**, primarily due to an increase in sales and operations employees - For the six months ended June 30, 2025, the Group recorded selling and distribution expenses of **RMB 46.5 million**, an increase of approximately **12.6%** compared to **RMB 41.3 million** in H1 2024[51](index=51&type=chunk) - The percentage of selling and distribution expenses to the Group's total revenue increased to approximately **13.3%** (H1 2024: approximately **9.0%**), mainly due to the increase in the number of the Group's sales and operations employees to **303** as of June 30, 2025 (H1 2024: **235**)[51](index=51&type=chunk) [Administrative Expenses](index=20&type=section&id=%E8%A1%8C%E6%94%BF%E5%BC%80%E6%94%AF) For H1 2025, administrative expenses decreased by **5.0%** to **RMB 49.9 million**, mainly due to stricter internal controls, while its percentage of total revenue increased to **14.3%** due to reduced total revenue - For the six months ended June 30, 2025, the Group recorded administrative expenses of **RMB 49.9 million**, a decrease of approximately **5.0%** compared to **RMB 52.5 million** in H1 2024, primarily due to stricter internal controls on related expenses in H1 2025[52](index=52&type=chunk) - The percentage of administrative expenses to the Group's total revenue increased to approximately **14.3%** (H1 2024: approximately **11.5%**), mainly due to the decrease in total revenue during the current period[52](index=52&type=chunk) [Loss for the Period](index=20&type=section&id=%E6%9C%9F%E5%86%85%E4%B8%B5%E6%8D%9F) For H1 2025, loss attributable to shareholders of the company was **RMB 26.7 million**, with basic loss per share of **RMB 2.5 cents**, indicating a widening loss year-on-year - For the six months ended June 30, 2025, loss attributable to shareholders of the company was **RMB 26.7 million** (H1 2024: loss attributable to shareholders of **RMB 19.1 million**)[53](index=53&type=chunk) - Basic loss per share of the company was **RMB 2.5 cents** (H1 2024: basic loss per share of the company was **RMB 1.8 cents**)[53](index=53&type=chunk) [Adjusted Loss for the Period](index=20&type=section&id=%E7%BB%8F%E8%B0%83%E6%95%B4%E6%9C%9F%E5%86%85%E4%B8%B5%E6%8D%9F) The Group's adjusted loss for the period was **RMB 24.5 million**, a widening from **RMB 17.6 million** in the prior year - The Group's adjusted loss for the period was **RMB 24.5 million** (H1 2024: adjusted loss for the period of **RMB 17.6 million**)[54](index=54&type=chunk) [Cash Flows](index=21&type=section&id=%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F) For H1 2025, net cash inflow from operating activities was **RMB 86.0 million**, primarily due to a decrease in prepayments, contrasting with a net outflow in the prior year - For the six months ended June 30, 2025, net cash inflow from operating activities was **RMB 86.0 million** (H1 2024: net cash outflow from operating activities of **RMB 374.9 million**), with this change primarily due to a decrease in prepayments as of June 30, 2025, compared to the balance as of December 31, 2024[55](index=55&type=chunk) [Gearing Ratio](index=21&type=section&id=%E8%B5%84%E6%9C%AC%E8%B4%9F%E5%80%BA%E6%AF%94%E7%8E%87) As of June 30, 2025, the Group's gearing ratio was approximately **37.9%**, an increase from **34.5%** as of June 30, 2024, mainly due to increased interest-bearing bank borrowings - As of June 30, 2025, the Group's gearing ratio was approximately **37.9%**, compared to approximately **34.5%** as of June 30, 2024, primarily due to an increase in the Group's interest-bearing bank borrowings during the current period[56](index=56&type=chunk) - The gearing ratio is calculated as net debt divided by total capital plus net debt, where net debt includes interest-bearing bank borrowings, trade payables, and other payables and accrued items, less cash and cash equivalents[56](index=56&type=chunk) [Liquidity and Capital Structure](index=21&type=section&id=%E6%B5%81%E5%8A%A8%E8%B5%84%E9%87%91%E5%8F%8A%E8%B5%84%E6%9C%AC%E6%9E%B6%E6%9E%84) The Group's daily working capital primarily comes from internal operating activities and bank borrowings; as of June 30, 2025, cash and cash equivalents were approximately **RMB 433.4 million**, with interest-bearing bank borrowings of **RMB 855.8 million** - The Group's daily working capital is primarily sourced from cash flows generated from internal operating activities and bank borrowings[57](index=57&type=chunk) - As of June 30, 2025, the Group had cash and cash equivalents of approximately **RMB 433.4 million** (as of June 30, 2024: approximately **RMB 232.0 million**)[57](index=57&type=chunk) - As of June 30, 2025, the Group's interest-bearing bank borrowings amounted to **RMB 855.8 million**, bearing interest in RMB[57](index=57&type=chunk) [Capital Commitments](index=21&type=section&id=%E8%B5%84%E6%9C%AC%E6%89%BF%E6%8B%85) As of June 30, 2025, the Group had no significant capital commitments - As of June 30, 2025, the Group had no significant capital commitments[58](index=58&type=chunk) [Foreign Exchange Risk Management](index=21&type=section&id=%E5%A4%96%E6%B1%87%E9%A3%8E%E9%99%A9%E7%AE%A1%E7%90%86) The Group has transactional currency exposure from shares issued in currencies other than the functional currency of operating units, but currently does not intend to hedge, continuously monitoring economic conditions and foreign exchange risk - The Group has transactional currency exposure arising from shares issued in currencies other than the functional currency of the operating units[59](index=59&type=chunk) - Currently, the Group does not intend to hedge its exposure to foreign exchange fluctuations, but senior management continuously monitors economic conditions and foreign exchange risk, considering appropriate hedging measures when necessary[59](index=59&type=chunk) [Significant Acquisitions, Disposals of Subsidiaries, Associates and Joint Ventures, and Material Investments](index=22&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B4%AD%E3%80%81%E5%87%BA%E5%94%AE%E9%99%84%E5%B1%9E%E5%85%AC%E5%8F%B8%E3%80%81%E8%81%94%E8%90%A5%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%90%88%E8%90%A5%E4%BC%81%E4%B8%9A%E5%8F%8A%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B5%84) As of June 30, 2025, the Group held a **19.0%** equity interest in Zhejiang Gushang Intelligent Technology Co., Ltd., with a carrying amount of **RMB 234.4 million**, representing approximately **9.3%** of total assets, with no other significant acquisitions, disposals, or investments during the period - As of June 30, 2025, the Group, through its wholly-owned subsidiaries, held an aggregate **19.0%** equity interest in Zhejiang Gushang Intelligent Technology Co., Ltd., with a total carrying amount of **RMB 234.4 million**[60](index=60&type=chunk) - Gushang Intelligent Technology's principal business includes the construction of buildings and parking lots in Hangzhou Zijingang Science and Technology City, with the topping-out ceremony completed in December 2023[60](index=60&type=chunk) - As of June 30, 2025, the carrying amount of the investment in Gushang Intelligent Technology accounted for approximately **9.3%** of the Group's total assets, with no other significant acquisitions, disposals, or investments during the current period[60](index=60&type=chunk) [Future Plans for Material Investments or Capital Assets](index=22&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B5%84%E6%88%96%E8%B5%84%E6%9C%AC%E8%B5%84%E4%BA%A7%E4%B9%8B%E6%9C%AA%E6%9D%A5%E8%AE%A1%E5%88%92) As of June 30, 2025, the Group had no specific plans for any material investments or acquisitions of capital assets outside the ordinary course of business - As of June 30, 2025, the Group had no specific plans for any material investments or acquisitions of capital assets outside the ordinary course of business[61](index=61&type=chunk) [Contingent Liabilities](index=22&type=section&id=%E6%88%96%E6%9C%89%E8%B4%9F%E5%80%BA) Hengfei Holding Limited initiated legal proceedings against the company and executive director Mr. Chen Xiaoliang; on August 26, 2025, the Hong Kong High Court ruled in favor of the plaintiff, ordering the company to pay damages to be assessed, while claims against Mr. Chen Xiaoliang were dismissed - Hengfei Holding Limited commenced legal proceedings against the Company and Mr. Chen Xiaoliang, a shareholder and executive director, alleging improper retention, delayed return, and failure or refusal to return the plaintiff's share certificates in the Company, causing losses[62](index=62&type=chunk) - As of June 30, 2025, the Directors believed that the Company had a valid defense against the claim and that the amount of the claim could not be reliably estimated, thus no provision was made (other than for legal and other costs)[62](index=62&type=chunk) - On August 26, 2025, the Court of First Instance of the High Court of Hong Kong ruled in favor of the plaintiff, ordering the Company to pay damages (to be assessed separately) and legal costs; the plaintiff's claims against Mr. Chen Xiaoliang were dismissed[63](index=63&type=chunk) [Pledge of Assets](index=23&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group recorded pledged deposits of **RMB 519.4 million** as collateral for interest-bearing bank borrowings, an increase from the end of 2024 - As of June 30, 2025, the Group recorded pledged deposits of **RMB 519.4 million** as collateral for interest-bearing bank borrowings (as of December 31, 2024: **RMB 379.5 million**)[64](index=64&type=chunk) [Events After Reporting Period](index=23&type=section&id=%E6%9C%9F%E5%90%8E%E4%BA%8B%E9%A0%85) On August 26, 2025, the Hong Kong High Court ruled on the legal proceedings initiated by Hengfei Holding Limited against the company and Mr. Chen Xiaoliang, as detailed in the "Contingent Liabilities" section - On August 26, 2025, the Court of First Instance of the High Court of Hong Kong ruled on the legal proceedings initiated by Hengfei Holding Limited against the Company and Mr. Chen Xiaoliang, a shareholder and executive director[65](index=65&type=chunk) [Organization and Talent Assurance](index=23&type=section&id=%E7%BB%84%E7%BB%87%E4%B8%8E%E4%BA%BA%E6%89%8D%E4%BF%9D%E9%9A%9C) As of June 30, 2025, the Group had **498** employees, with staff costs and employee benefits expenses of approximately **RMB 68.8 million**; the company prioritizes identifying and developing high-potential talent and incentivizes them through share options and share awards - As of June 30, 2025, the Group had **498** employees (December 31, 2024: **493**), including **81** sales employees, **62** administrative employees, **222** operations employees, and **133** R&D employees[66](index=66&type=chunk) - Staff costs and employee benefits expenses for the six months ended June 30, 2025, were approximately **RMB 68.8 million** (H1 2024: approximately **RMB 66.8 million**)[66](index=66&type=chunk) - Identifying and developing high-potential talent has been a top priority for the company's management this year, with incentives provided through the granting of share options and share awards[66](index=66&type=chunk) [Social Responsibility](index=23&type=section&id=%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB) Adhering to the philosophy of "serving the people and giving back to society," the Group actively contributes to society, donating **RMB 24 thousand** to the Hangzhou Dianzi University Education Development Foundation during this period - The Group adheres to the philosophy of "serving the people and giving back to society," actively seeking opportunities to contribute to society and create a better living environment for local communities[67](index=67&type=chunk) - The Group donated **RMB 24 thousand** to the Hangzhou Dianzi University Education Development Foundation during the current period[67](index=67&type=chunk) [Future Outlook](index=23&type=section&id=%E6%9C%AA%E6%9D%A5%E5%B1%95%E6%9C%9B) Looking ahead to H2 2025, the overall growth of the internet advertising industry is expected to be limited; the Group will focus on internal cost reduction and efficiency improvement while expanding business capabilities to increase revenue from non-internet advertising businesses - Due to the significant impact of macroeconomic conditions on advertisers' budgets and preferences, the Group's internet advertising business experienced a slight decline in revenue and gross profit for the six months ended June 30, 2025[68](index=68&type=chunk) - Looking ahead to H2 2025, the overall growth of the internet advertising industry is expected to be very limited[68](index=68&type=chunk) - The Group will focus on internal cost reduction and efficiency improvement while striving to expand its business capabilities and increase revenue from non-internet advertising businesses[68](index=68&type=chunk) [Other Information](index=24&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) [Interim Dividend](index=24&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board does not recommend the declaration of any interim dividend for the current period - The Board does not recommend the declaration of any interim dividend for the current period (H1 2024: nil)[69](index=69&type=chunk) [Corporate Governance Practices](index=24&type=section&id=%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A7%84) The company is committed to maintaining high standards of corporate governance and has adopted the Corporate Governance Code in Appendix C1 of the Listing Rules; despite the Chairman and CEO being the same person, the Board believes this arrangement enhances decision-making efficiency and execution, establishing sufficient balance of power and appropriate safeguards - The Company has adopted the Corporate Governance Code as set out in Appendix C1 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited as its own corporate governance code[70](index=70&type=chunk) - Mr. Chen Xiaoliang currently holds the positions of Chairman and Chief Executive Officer of the Company, and the Board believes this arrangement will enhance decision-making efficiency and execution processes[70](index=70&type=chunk) - The Board believes that a sufficient balance of power and appropriate safeguards have been established, and Mr. Chen Xiaoliang holding both positions will not negatively impact the balance of power and authority between the Board and the Company's senior management team[72](index=72&type=chunk) [Standard Code for Securities Transactions](index=25&type=section&id=%E8%AF%81%E5%88%B8%E4%BA%A4%E6%98%93%E6%A0%87%E5%87%86%E5%AE%88%E5%88%99) The company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers in Appendix C3 of the Listing Rules, and all directors have confirmed compliance during the reporting period - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules as its own code of conduct for directors' securities transactions[73](index=73&type=chunk) - Following specific inquiries with all Directors, each Director has confirmed compliance with the required standards set out in the Standard Code for the six months ended June 30, 2025[73](index=73&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=25&type=section&id=%E8%B4%AD%E4%B9%B0%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B5%8E%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AF%81%E5%88%B8) During the period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities, and as of June 30, 2025, the company held no treasury shares - During the current period, neither the Company nor any of its subsidiaries or consolidated affiliated entities purchased, sold, or redeemed any of the Company's listed securities[74](index=74&type=chunk) - As of June 30, 2025, the Company held no treasury shares[74](index=74&type=chunk) [Audit Committee](index=25&type=section&id=%E5%AE%A1%E6%A0%B8%E5%A7%94%E5%91%98%E4%BC%9A) The Board's Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025, in conjunction with the company's management - The Board's Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025, in conjunction with the company's management[75](index=75&type=chunk) [Publication of Interim Results and 2025 Interim Report on HKEX and Company Website](index=25&type=section&id=%E4%BA%8E%E8%81%94%E4%BA%A4%E6%89%80%E5%8F%8A%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%BD%91%E7%AB%99%E5%88%8A%E7%99%BB%E4%B8%AD%E6%9C%9F%E4%B8%9A%E7%BB%A9%E5%8F%8A2025%E5%B9%B4%E4%B8%AD%E6%9C%9F%E6%8A%A5%E5%91%8A) This interim results announcement has been published on the HKEX website and the company's website, and the 2025 interim report containing all information required by the Listing Rules will be dispatched to shareholders and published in due course - This interim results announcement has been published on the HKEX website (https://www.hkexnews.hk) and the Company's website (http://www.duiba.cn)[76](index=76&type=chunk) - The 2025 interim report, containing all information required by the Listing Rules, will be dispatched to shareholders and published on the HKEX and the Company's respective websites in due course[76](index=76&type=chunk) [Composition of the Board of Directors](index=25&type=section&id=%E8%91%A3%E4%BA%8B%E4%BC%9A%E6%9E%84%E6%88%90) As of the announcement date, the Board comprises executive directors Mr. Chen Xiaoliang, Mr. Zhu Jiangbo, and Mr. Cheng Peng; non-executive director Ms. Yang Jiaqing; and independent non-executive directors Mr. Gan Weimin, Dr. Gao Fuping, and Dr. Shi Jianxun - As of the date of this announcement, the Board comprises executive directors Mr. Chen Xiaoliang, Mr. Zhu Jiangbo, and Mr. Cheng Peng; non-executive director Ms. Yang Jiaqing; and independent non-executive directors Mr. Gan Weimin, Dr. Gao Fuping, and Dr. Shi Jianxun[77](index=77&type=chunk)

[Company Announcements and Financial Highlights](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E5%85%AC%E5%91%8A%E5%8F%8A%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) The company announced its unaudited interim results for the six months ended June 30, 2025, showing significant revenue and profit growth, a narrowed loss per share, and continued share suspension [Interim Results Announcement](index=1&type=section&id=%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%91%8A) LET Group Holdings Limited announced its unaudited condensed consolidated interim results for the six months ended June 30, 2025, highlighting significant growth in key financial metrics while its shares remain suspended - The Board of Directors announced the unaudited condensed consolidated interim results for the six months ended June 30, 2025[4](index=4&type=chunk) - The company's shares will remain suspended from trading[3](index=3&type=chunk) [Financial Highlights](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) For the six months ended June 30, 2025, the company's total revenue increased by 65% to approximately HK$313 million, gross profit rose by 14%, profit attributable to equity holders significantly increased, and basic loss per share narrowed Financial Highlights for the Six Months Ended June 30, 2025 | Metric | June 30, 2025 (Thousand HKD) | June 30, 2024 (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 312,855 | 189,910 | +65% | | Gross Profit | 116,141 | 102,267 | +14% | | Profit Attributable to Equity Holders | 99,540 | 58,883 | +69% | | Basic Loss Per Share Attributable to Equity Holders (HK cents) | (0.49) | (1.09) | Loss narrowed | - Total revenue increased by **65%** to approximately **HK$312.86 million**[4](index=4&type=chunk) - Gross profit increased by **14%** to approximately **HK$116.14 million**[4](index=4&type=chunk) - Profit attributable to equity holders was approximately **HK$99.54 million**, a significant increase from the same period last year[4](index=4&type=chunk) [Condensed Consolidated Financial Statements](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the condensed consolidated financial statements, including the statement of profit or loss and other comprehensive income, and the statement of financial position, for the reporting period [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the company reported significant revenue growth and a substantial increase in profit for the period, primarily driven by a positive shift in other income, gains, and losses, despite higher finance costs Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Extract) | Metric | June 30, 2025 (Thousand HKD) | June 30, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Revenue | 312,855 | 189,910 | | Cost of Sales | (196,714) | (87,643) | | Gross Profit | 116,141 | 102,267 | | Other Income, Gains and Losses | 227,011 | (169,837) | | Finance Costs | (15,439) | (3,234) | | Profit Before Tax | 183,759 | 25,630 | | Profit for the Period | 173,161 | 18,569 | | Basic Loss Per Share Attributable to Equity Holders (HK cents) | (0.49) | (1.09) | - Profit for the period significantly increased from **HK$18.57 million** in the same period of 2024 to **HK$173.16 million** in 2025[5](index=5&type=chunk) - Total other comprehensive income (expense) shifted from a **HK$97.15 million** expense in 2024 to an **HK$88.34 million** income in 2025, primarily due to exchange differences[5](index=5&type=chunk) [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the company's total non-current assets increased, mainly driven by growth in property, operating rights, and equipment, while net current assets decreased, but total equity continued to grow Condensed Consolidated Statement of Financial Position (Extract) | Metric | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Total Non-Current Assets | 7,125,264 | 6,337,536 | | Total Current Assets | 1,164,816 | 1,304,796 | | Total Current Liabilities | 904,484 | 588,412 | | Net Current Assets | 260,332 | 716,384 | | Total Equity | 4,764,655 | 4,503,154 | | Total Equity | 4,764,655 | 4,503,154 | - Property, operating rights, and equipment increased from **HK$4.63 billion** as of December 31, 2024, to **HK$5.41 billion** as of June 30, 2025[7](index=7&type=chunk) - Net current assets decreased from **HK$716.38 million** as of December 31, 2024, to **HK$260.33 million** as of June 30, 2025[8](index=8&type=chunk) [Notes to the Financial Statements](index=6&type=section&id=%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section provides detailed notes to the condensed consolidated financial statements, covering general information, accounting policies, segment reporting, and other financial items [General Information](index=6&type=section&id=%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) The company, incorporated in the Cayman Islands and listed on the Hong Kong Stock Exchange, primarily engages in investment holding, hotel and casino operations in the Philippines and Russia, trade in Russia, and property development in Japan - The company's principal activities include investment holding and operations in the Philippines, Russia, and Japan[10](index=10&type=chunk) - Mr. Lo Yan Yee is the ultimate controlling party of the company[9](index=9&type=chunk) [Basis of Preparation and Going Concern](index=6&type=section&id=%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96%E5%8F%8A%E6%8C%81%E7%BA%8C%E7%B6%93%E7%87%9F) The condensed consolidated financial statements are prepared in accordance with HKAS 34, with significant going concern uncertainties identified, including net cash outflows from operations, loan defaults, and funding shortfalls for the main hotel and casino project, which the Board is actively addressing - The Group generated net cash outflows from operating activities of approximately **HK$165.76 million** for the six months ended June 30, 2025[11](index=11&type=chunk) - The company defaulted on the repayment of other borrowings totaling **HK$137.5 million**, which remained unpaid after the reporting period[11](index=11&type=chunk) - The main hotel and casino project is expected to be completed in the third quarter of 2026, but the remaining available bank financing may be insufficient for completion, requiring additional funds[12](index=12&type=chunk) - The Group has implemented several plans and measures to mitigate liquidity risks, including negotiating with lenders, disposing of non-core assets, enhancing non-current assets, controlling operating expenses, and seeking alternative financing[15](index=15&type=chunk) [Basis of Preparation](index=6&type=section&id=%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of Appendix D2 to the Listing Rules - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting'[11](index=11&type=chunk) [Going Concern Uncertainties and Mitigation Measures](index=6&type=section&id=%E6%8C%81%E7%BA%8C%E7%B6%93%E7%87%9F%E4%B8%8D%E7%A2%BA%E5%AE%9A%E6%80%A7%E5%8F%8A%E7%B7%A9%E8%A7%A3%E6%8E%AA%E6%96%BD) The company faces significant uncertainties regarding operating cash outflows, loan defaults, and insufficient funding for capital commitments; management is actively negotiating with lenders, planning non-core asset disposals, controlling expenses, and seeking new financing to ensure going concern - The Group generated net cash outflows from operating activities of approximately **HK$165.76 million** for the six months ended June 30, 2025[11](index=11&type=chunk) - The company defaulted on the repayment of other borrowings totaling **HK$137.5 million**[11](index=11&type=chunk) - The main hotel and casino project is expected to be completed in the third quarter of 2026, but the remaining available bank financing may be insufficient for completion, requiring additional funds[12](index=12&type=chunk) - The Board has considered future liquidity and funding sources, implementing measures such as negotiating with lenders, disposing of non-core assets, controlling operating expenses, and identifying other debt and/or equity financing[14](index=14&type=chunk)[15](index=15&type=chunk) [Significant Accounting Policies](index=8&type=section&id=%E4%B8%BB%E8%A6%81%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The Group first applied revised HKFRSs, effective January 1, 2025, during this interim period, which had no material impact on the financial position or performance of current and prior periods - The Group first applied revised Hong Kong Financial Reporting Standards, including amendments to HKAS 21 'Lack of Exchangeability', for the six months ended June 30, 2025[16](index=16&type=chunk) - The application of revised HKFRSs had no material impact on the Group's financial position or performance for the current and prior periods[16](index=16&type=chunk) [Revenue and Segment Information](index=8&type=section&id=%E6%94%B6%E5%85%A5%E5%8F%8A%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group's operating segments include integrated resorts in the Philippines and Russia, Russian trade business, and Japanese property development; total revenue significantly increased for the six months ended June 30, 2025, primarily from Russian integrated resorts and trade, with no revenue from Philippine and Japanese segments - The Group's operating segments include integrated resorts in the Philippines and Russian Federation, trade business in the Russian Federation, and property development[18](index=18&type=chunk) [Operating Segments](index=8&type=section&id=%E7%B6%93%E7%87%9F%E5%88%86%E9%83%A8) The Group's operating segments primarily focus on integrated resort development and operation in the Philippines, hotel gaming and trade business in the Russian Federation, and property development in Japan - Key operating segments include integrated resorts in the Philippines, hotel and gaming operations in the Russian Federation, trade business in the Russian Federation, and property development in Japan[18](index=18&type=chunk) [Revenue Breakdown](index=9&type=section&id=%E6%94%B6%E5%85%A5%E6%8B%86%E5%88%86) For the six months ended June 30, 2025, total revenue was HK$312.86 million, a 64.8% increase year-on-year, with Russian Federation integrated resorts contributing HK$212.73 million and Russian Federation trade business contributing HK$100.13 million, while Philippine and property development segments generated no revenue Revenue by Operating Segment | Segment | June 30, 2025 (Thousand HKD) | June 30, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Integrated Resorts in the Philippines | – | – | | Integrated Resorts in the Russian Federation | 212,725 | 189,910 | | Trade Business in the Russian Federation | 100,130 | – | | Property Development | – | – | | **Total Revenue** | **312,855** | **189,910** | - Trade business in the Russian Federation contributed **HK$100.13 million** in revenue during the first half of 2025, compared to zero in the same period last year[20](index=20&type=chunk) [Segment Results](index=11&type=section&id=%E5%88%86%E9%83%A8%E6%A5%AD%E7%B8%BE) For the six months ended June 30, 2025, the Russian Federation integrated resorts segment reported a profit of HK$62.17 million, while the Philippine integrated resorts segment recorded a loss of HK$54.25 million, and the trade business segment incurred a loss of HK$3.09 million Results by Operating Segment | Segment | June 30, 2025 (Thousand HKD) | June 30, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Integrated Resorts in the Philippines | (54,247) | (43,044) | | Integrated Resorts in the Russian Federation | 62,166 | 41,745 | | Trade Business in the Russian Federation | (3,092) | – | | Property Development | (119) | (436) | | **Profit Before Tax** | **183,759** | **25,630** | - The Russian Federation integrated resorts segment's results increased from **HK$41.75 million** in the same period of 2024 to **HK$62.17 million** in 2025[24](index=24&type=chunk) [Segment Assets and Liabilities](index=12&type=section&id=%E5%88%86%E9%83%A8%E8%B3%87%E7%94%A2%E5%8F%8A%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Philippine integrated resorts segment held the highest total assets at HK$6.72 billion and the largest segment liabilities at HK$3.15 billion, while assets in the Russian trade business segment significantly increased Assets and Liabilities by Operating Segment | Segment | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | **Segment Assets** | | | | Integrated Resorts in the Philippines | 6,717,056 | 6,162,413 | | Integrated Resorts in the Russian Federation | 1,121,228 | 1,098,352 | | Trade Business in the Russian Federation | 33,773 | – | | Property Development | 409,819 | 372,327 | | **Segment Liabilities** | | | | Integrated Resorts in the Philippines | 3,154,053 | 2,757,038 | | Integrated Resorts in the Russian Federation | 140,314 | 136,723 | | Trade Business in the Russian Federation | – | – | | Property Development | 83 | 80 | - Segment assets for trade business in the Russian Federation increased from zero as of December 31, 2024, to **HK$33.77 million** as of June 30, 2025[25](index=25&type=chunk) [Other Income, Gains and Losses](index=13&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E3%80%81%E6%94%B6%E7%9B%8A%E5%8F%8A%E虧%E6%90%8D) For the six months ended June 30, 2025, other income, gains, and losses significantly shifted from a loss to a substantial gain, primarily driven by a large increase in net exchange gains Other Income, Gains and Losses | Metric | June 30, 2025 (Thousand HKD) | June 30, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Bank Interest Income | 28,609 | 15,175 | | Net Exchange Gains (Losses) | 197,929 | (185,325) | | **Total** | **227,011** | **(169,837)** | - Net exchange gains shifted from a **HK$185.33 million** loss in the same period of 2024 to a **HK$197.93 million** gain in 2025, primarily contributing to the positive change in other income, gains, and losses[27](index=27&type=chunk) [Finance Costs](index=14&type=section&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) For the six months ended June 30, 2025, total finance costs significantly increased, mainly due to higher interest on bank and other borrowings, with a portion of these costs capitalized Finance Costs | Metric | June 30, 2025 (Thousand HKD) | June 30, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Interest on Bank Borrowings | 66,141 | 51,850 | | Interest on Other Borrowings | 13,721 | 588 | | Interest on Lease Liabilities | 17,960 | 18,058 | | Total Finance Costs | 100,335 | 74,114 | | Less: Capitalized in Property, Operating Rights and Equipment under Construction | (84,896) | (70,880) | | **Finance Costs Expensed** | **15,439** | **3,234** | - Interest on bank borrowings increased from **HK$51.85 million** in the same period of 2024 to **HK$66.14 million** in 2025[29](index=29&type=chunk) - Interest on other borrowings significantly increased from **HK$0.59 million** in the same period of 2024 to **HK$13.72 million** in 2025[29](index=29&type=chunk) [Profit for the Period Items](index=15&type=section&id=%E6%9C%9F%E5%85%A7%E6%BA%A2%E5%88%A9%E9%A0%85%E7%9B%AE) For the six months ended June 30, 2025, profit for the period was achieved after deducting items such as depreciation, directors' emoluments, staff costs, and cost of sales, with total staff costs and operating expenses for trade business showing significant increases Profit for the Period After Charging (Crediting) Items | Metric | June 30, 2025 (Thousand HKD) | June 30, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Total Depreciation | 78,840 | 79,518 | | Total Depreciation Expensed | 31,246 | 30,481 | | Directors' Emoluments | 6,689 | 6,227 | | Total Staff Costs | 132,480 | 107,842 | | Total Staff Costs Expensed | 121,632 | 101,927 | | Cost of Sales – Operating Expenses for Gaming and Hotel Operations | 93,492 | 87,643 | | Cost of Sales – Operating Expenses for Trade Business | 103,222 | – | - Total staff costs increased from **HK$107.84 million** in the same period of 2024 to **HK$132.48 million** in 2025[30](index=30&type=chunk) - Operating expenses for trade business were **HK$103.22 million** in the first half of 2025, compared to zero in the same period last year[30](index=30&type=chunk) [Income Tax Expense](index=16&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, income tax expense increased, primarily due to a significant rise in Russian withholding tax; the company's tax policies vary across jurisdictions, with no provisions made in some regions due to the absence of taxable profits or losses Income Tax Expense | Tax Type | June 30, 2025 (Thousand HKD) | June 30, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Philippine Withholding Tax | 614 | 2,938 | | Russian Withholding Tax | 9,859 | 4,044 | | Russian Corporate Tax | 125 | 79 | | **Total** | **10,598** | **7,061** | - Russian withholding tax increased from **HK$4.04 million** in the same period of 2024 to **HK$9.86 million** in 2025[31](index=31&type=chunk) - No corporate income tax provision was made for subsidiaries incorporated in the Philippines and Japan, as they did not earn taxable profits or incur losses[35](index=35&type=chunk)[37](index=37&type=chunk) [Dividends](index=17&type=section&id=%E8%82%A1%E6%81%AF) No dividends were proposed, declared, or paid by the company for the six-month periods ended June 30, 2025, and 2024 - No dividends were proposed, declared, or paid for the six-month periods ended June 30, 2025, and 2024[40](index=40&type=chunk) [Loss Per Share](index=18&type=section&id=%E6%AF%8F%E8%82%A1%E虧%E6%90%8D) For the six months ended June 30, 2025, basic loss per share attributable to equity holders narrowed to 0.49 HK cents, down from 1.09 HK cents in the prior year, with diluted loss per share also decreasing accordingly Loss Per Share Calculation | Metric | June 30, 2025 (Thousand HKD) | June 30, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Loss for Basic Loss Per Share Attributable to Equity Holders | (34,252) | (75,280) | | Loss for Diluted Loss Per Share | (38,168) | (99,421) | | Weighted Average Number of Ordinary Shares | 6,936,972,746 | 6,936,972,746 | | Basic Loss Per Share (HK cents) | (0.49) | (1.09) | | Diluted Loss Per Share (HK cents) | (0.55) | (1.43) | - Basic loss per share attributable to equity holders narrowed from **1.09 HK cents** in the same period of 2024 to **0.49 HK cents** in 2025[41](index=41&type=chunk) [Prepayments and Deposits for Non-Current Assets](index=19&type=section&id=%E9%9D%9E%E6%B5%81%E5%8B%95%E8%B3%87%E7%94%A2%E9%A0%90%E4%BB%98%E6%AC%BE%E5%8F%8A%E6%8C%89%E9%87%91) As of June 30, 2025, total prepayments and deposits for non-current assets increased to HK$369.65 million, primarily due to deposits for the construction of the main hotel and casino Prepayments and Deposits for Non-Current Assets | Metric | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Deposits for Construction of Main Hotel and Casino | 365,228 | 297,905 | | Deposits for Purchase of Property, Operating Rights and Equipment | 13,270 | 15,675 | | Less: Impairment Provision | (8,847) | (8,847) | | **Total** | **369,651** | **304,733** | - Deposits for the construction of the main hotel and casino increased from **HK$297.91 million** as of December 31, 2024, to **HK$365.23 million** as of June 30, 2025[43](index=43&type=chunk) [Other Receivables and Prepayments](index=19&type=section&id=%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E5%8F%8A%E9%A0%90%E4%BB%98%E6%AC%BE) As of June 30, 2025, total other receivables and prepayments increased to HK$524.80 million, primarily due to an increase in recoverable indirect taxes and other deposits Other Receivables and Prepayments | Metric | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Other Receivables | 9,057 | 4,955 | | Recoverable Indirect Taxes | 345,790 | 314,397 | | Other Deposits | 70,340 | 2,118 | | Prepayments | 99,743 | 73,690 | | Less: Impairment Provision | (135) | (135) | | **Total** | **524,795** | **395,025** | - Recoverable indirect taxes (primarily input VAT paid by Suntrust for the main hotel and casino construction) increased from **HK$314.40 million** as of December 31, 2024, to **HK$345.79 million** as of June 30, 2025[44](index=44&type=chunk) [Trade and Other Payables](index=20&type=section&id=%E6%87%89%E4%BB%98%E8%B3%A6%E6%AC%BE%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE) As of June 30, 2025, total trade and other payables significantly increased to HK$883.71 million, primarily due to substantial increases in construction costs payable and interest payable Trade and Other Payables | Metric | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Trade Payables | 1

Revenue and Profitability - Revenue for the six months ended June 30, 2025, was RMB 4,176,000, a decrease of 69.1% compared to RMB 13,524,000 for the same period in 2024[4] - The profit attributable to owners of the company was RMB 885,804,000, compared to a loss of RMB 21,685,000 in the previous year[4] - Basic and diluted earnings per share for the period were RMB 1.32, compared to a loss per share of RMB 0.04 in 2024[4] - The company's revenue decreased from approximately RMB 135 million in the first half of 2024 to about RMB 42 million in the first half of 2025, representing a decline of approximately 69%[38] - The group turned a loss of approximately RMB 21.7 million in the first half of 2024 into a profit of approximately RMB 885.8 million in the first half of 2025, mainly due to the aforementioned sale generating other income[56] Financial Position - Total assets less current liabilities amounted to RMB (69,587,000) as of June 30, 2025, compared to RMB (912,054,000) as of December 31, 2024[6] - The company reported a net cash balance of RMB 10,699,000 as of June 30, 2025[10] - The total financial liabilities measured at fair value through profit or loss amounted to RMB 59,534,000 as of June 30, 2025[10] - Following the restructuring and sale of the subsidiary, the company's net debt improved significantly from approximately RMB 930.4 million to about RMB 70.7 million as of June 30, 2025[38] - Trade and other receivables decreased from approximately RMB 114.3 million on December 31, 2024, to approximately RMB 3.8 million on June 30, 2025, a decline of 96.7%[57] - Trade and other payables decreased from approximately RMB 874.9 million on December 31, 2024, to approximately RMB 17.9 million on June 30, 2025[58] - As of June 30, 2025, the group had no bank borrowings, compared to approximately RMB 28.8 million on December 31, 2024[59] Operational Changes and Strategy - The company is actively seeking new clients and potential new funding through various channels, including issuing new shares[12] - The company aims to shift from long-term government contracts to shorter cycle projects to reduce financial pressure and improve cash flow[44] - The company maintains a light-asset business model, focusing on subcontracting to reduce procurement costs and improve operational flexibility[45] - The company has established long-term partnerships with developers and engineering firms, enhancing its ability to secure projects[44] - The company plans to continue optimizing operational efficiency while maintaining comprehensive project management control through its subcontracting model[45] Challenges and Risks - The company has faced significant uncertainty regarding its ability to continue as a going concern due to outstanding debts and ongoing litigation[11] - The company faced significant challenges due to the weak macroeconomic environment and ongoing litigation affecting its operations[38] Asset Management - Contract assets for construction services amounted to RMB 3,809,000 as of June 30, 2025, compared to RMB 766,797,000 as of December 31, 2024[28] - The company has no trade receivables as of June 30, 2025, compared to RMB 688,722,000 as of December 31, 2024[25] - All non-current assets are located in China as of June 30, 2025, consistent with the previous year[17] Cash Flow and Liquidity - The company reported cash and cash equivalents of RMB 10,699,000 as of June 30, 2025, a significant increase from RMB 507,000 as of December 31, 2024[29] - The current ratio improved to 21.0% as of June 30, 2025, from 17.5% on December 31, 2024[66] Corporate Governance - The company has adopted new and revised Hong Kong Financial Reporting Standards, which did not result in significant changes to its accounting policies[13] - The company has no income tax expenses for the six months ended June 30, 2025, as it operates overseas and is not subject to Hong Kong profits tax[21] - The board did not recommend the distribution of an interim dividend for the period ending June 30, 2025[65]

[Company Information and Financial Summary](index=1&type=section&id=Company%20Information%20and%20Financial%20Summary) This section presents the company's unaudited interim financial results, including key statements and highlights [Company Overview](index=1&type=section&id=1.1%20Company%20Overview) Zall Smart Commerce Group Ltd. announced its unaudited interim results for the six months ended June 30, 2025 - The company, Zall Smart Commerce Group Ltd., stock code 2098, is incorporated in the Cayman Islands[2](index=2&type=chunk) [Condensed Consolidated Interim Income Statement](index=1&type=section&id=1.2%20Condensed%20Consolidated%20Interim%20Income%20Statement) Revenue grew significantly, but gross profit and profit before tax declined; profit and basic EPS increased Condensed Consolidated Interim Income Statement Key Data (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 90,921,475 | 68,276,396 | +33.2% | | Cost of Sales | (90,644,136) | (67,912,566) | +33.5% | | Gross Profit | 277,339 | 363,830 | -23.8% | | Other Net Income | 19,093 | 55,065 | -65.3% | | Selling and Distribution Expenses | (147,551) | (122,849) | +20.1% | | Administrative and Other Expenses | (200,553) | (193,692) | +3.5% | | Net Impairment Loss | 18,132 | (42,596) | N/A | | Operating Profit | 272,207 | 354,292 | -23.2% | | Finance Income | 125,523 | 122,803 | +2.2% | | Finance Costs | (293,809) | (338,891) | -13.3% | | Profit Before Tax | 106,570 | 138,632 | -23.1% | | Profit for the Period | 69,972 | 40,760 | +71.7% | | Profit Attributable to Equity Holders of the Company | 97,051 | 49,817 | +94.8% | | Basic and Diluted Earnings Per Share (RMB cents) | 0.78 | 0.40 | +95.0% | [Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=1.3%20Condensed%20Consolidated%20Interim%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) Profit for the period significantly increased, but total comprehensive income slightly decreased due to foreign exchange differences Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income Key Data (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit for the Period | 69,972 | 40,760 | | Other Comprehensive Loss for the Period (Exchange Differences) | (32,221) | (2,682) | | Total Comprehensive Income for the Period | 37,751 | 38,078 | | Total Comprehensive Income Attributable to Equity Holders of the Company | 64,830 | 47,135 | [Condensed Consolidated Interim Statement of Financial Position](index=4&type=section&id=1.4%20Condensed%20Consolidated%20Interim%20Statement%20of%20Financial%20Position) Non-current assets and total assets slightly increased, net current liabilities improved but remained negative, and total equity remained stable Condensed Consolidated Interim Statement of Financial Position Key Data (As of June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Investment Properties | 25,194,024 | 24,879,292 | | Total Non-current Assets | 27,222,086 | 26,866,732 | | **Current Assets** | | | | Inventories | 4,328,550 | 3,975,854 | | Trade and Other Receivables | 28,562,645 | 26,286,928 | | Pledged Bank Deposits | 7,494,483 | 10,014,072 | | Cash and Cash Equivalents | 1,531,290 | 1,545,952 | | Total Current Assets | 42,560,212 | 42,618,024 | | **Current Liabilities** | | | | Trade and Other Payables | 18,380,210 | 18,755,310 | | Contract Liabilities | 16,872,656 | 14,924,656 | | Interest-bearing Borrowings | 9,640,129 | 11,568,152 | | Total Current Liabilities | 46,733,251 | 47,343,087 | | Net Current Liabilities | (4,173,039) | (4,725,063) | | **Non-current Liabilities** | | | | Interest-bearing Borrowings | 4,044,646 | 3,263,285 | | Deferred Tax Liabilities | 4,602,303 | 4,510,741 | | Total Non-current Liabilities | 8,668,343 | 7,798,716 | | **Total Equity** | 14,380,704 | 14,342,953 | [Notes to the Financial Statements](index=6&type=section&id=Notes%20to%20the%20Financial%20Statements) This section details financial statement notes, covering accounting policies, segment reporting, and key items [Basis of Preparation and Going Concern](index=6&type=section&id=2.1%20Basis%20of%20Preparation%20and%20Going%20Concern) Interim financial information is prepared on a going concern basis despite net current liabilities, with management addressing liquidity challenges - This condensed consolidated interim financial information is prepared in accordance with applicable disclosure provisions of the HKEX Listing Rules and IAS 34 'Interim Financial Reporting'[8](index=8&type=chunk) - As of June 30, 2025, the Group had net current liabilities of approximately **RMB 4.173 billion**, indicating significant uncertainty, but the Board is confident in meeting financial obligations for the next 12 months, thus preparing on a going concern basis[9](index=9&type=chunk)[11](index=11&type=chunk) - The company has implemented measures to manage liquidity, including improving supply chain management and trading business revenue, investment property rental income, negotiating loan extensions or refinancing with banks, considering share placements, and disposing of non-core businesses and assets[10](index=10&type=chunk)[13](index=13&type=chunk) [Changes in Accounting Policies](index=7&type=section&id=2.2%20Changes%20in%20Accounting%20Policies) IAS 21 (Amendment) was applied, but had no material impact as the Group did not engage in relevant transactions - The Group applied IAS 21 (Amendment) 'The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability' in this accounting period, but it had no material impact as no foreign currency transactions involving non-exchangeable currencies were conducted[12](index=12&type=chunk) [Revenue and Segment Reporting](index=8&type=section&id=2.3%20Revenue%20and%20Segment%20Reporting) The Group's main businesses include developing and operating large consumer goods wholesale markets and providing supply chain management and trading services, with total revenue reaching RMB 90.921 billion - The Group's primary business involves developing and operating large consumer goods wholesale markets in China and providing supply chain management and trading services, e-commerce services, financial services, warehousing, and logistics services for online and offline customers[14](index=14&type=chunk) - The Group manages its business through two reportable segments: property development and related services, and supply chain management and trading[16](index=16&type=chunk)[19](index=19&type=chunk) [Revenue Breakdown](index=8&type=section&id=2.3.1%20Revenue%20Breakdown) Supply chain management and trading revenue significantly increased, while property sales and rental income decreased Revenue Breakdown (For the six months ended June 30) | Revenue Source | 2025 (RMB thousands) | 2024 (RMB thousands) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Sales of Properties and Related Services | 45,952 | 54,321 | -15.4% | | Supply Chain Management and Trading Business | 90,693,400 | 68,047,691 | +33.3% | | Others (from contracts with customers) | 1,733 | 9,688 | -82.1% | | **Total Revenue from Contracts with Customers** | **90,741,085** | **68,111,700** | **+33.2%** | | Gross Rental Income from Investment Properties | 116,961 | 122,416 | -4.4% | | Financing Income | 24,987 | 31,029 | -19.5% | | Others (other sources) | 38,442 | 11,251 | +241.7% | | **Total Revenue from Other Sources** | **180,390** | **164,696** | **+9.5%** | | **Total Revenue** | **90,921,475** | **68,276,396** | **+33.2%** | - The total transaction price allocated to the remaining performance obligations under existing contracts of the Group was **RMB 188.534 million**, expected to be recognized within 1 to 24 months[18](index=18&type=chunk) [Segment Reporting](index=9&type=section&id=2.3.2%20Segment%20Reporting) Supply chain management and trading revenue grew but incurred a loss, while property development remained profitable Reportable Segment Results (For the six months ended June 30) | Indicator | Property Development and Related Services (2025) | Property Development and Related Services (2024) | Supply Chain Management and Trading (2025) | Supply Chain Management and Trading (2024) | | :--- | :--- | :--- | :--- | :--- | | Reportable Segment Revenue (RMB thousands) | 163,148 | 176,698 | 90,756,594 | 68,090,010 | | Reportable Segment Profit/(Loss) (RMB thousands) | 71,529 | 64,380 | (109,948) | (54,301) | | Net Gain from Investment Property Valuation (RMB thousands) | 305,747 | 294,534 | – | – | - Supply chain management and trading segment revenue significantly increased but turned from profit to loss, primarily affected by finance costs and impairment losses[21](index=21&type=chunk) [Geographical Segment Information](index=11&type=section&id=2.3.3%20Geographical%20Segment%20Information) Mainland China remains the primary revenue source, with significant growth in Singapore market revenue Geographical Segment Revenue and Designated Non-current Assets (As of June 30) | Region | Revenue from External Customers (2025, RMB thousands) | Revenue from External Customers (2024, RMB thousands) | Designated Non-current Assets (2025, RMB thousands) | Designated Non-current Assets (2024, RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | China | 58,703,618 | 55,935,779 | 26,668,642 | 26,255,302 | | Singapore | 32,217,857 | 12,340,617 | 2,044 | 2,044 | | **Total** | **90,921,475** | **68,276,396** | **26,670,686** | **26,257,346** | [Other Net Income](index=12&type=section&id=2.4%20Other%20Net%20Income) Other net income significantly decreased by 65.3%, mainly due to reduced government grants and fair value changes Other Net Income Details (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net change in fair value of financial instruments at FVTPL | 18,400 | 33,103 | | Government grants | 5,982 | 22,291 | | Cancellation of purchase orders and penalties for product defects | (4,263) | – | | Others | (1,026) | (329) | | **Total** | **19,093** | **55,065** | [Profit Before Tax](index=12&type=section&id=2.5%20Profit%20Before%20Tax) Profit before tax was influenced by finance income and costs, depreciation, staff costs, R&D, and impairment losses [Finance Income and Costs](index=12&type=section&id=2.5.1%20Finance%20Income%20and%20Costs) Finance income slightly increased, while finance costs significantly decreased, mainly due to interest waivers Finance Income and Costs (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Finance Income | | | | Interest income from bank deposits | (125,523) | (122,803) | | Finance Costs | | | | Interest on interest-bearing borrowings | 257,249 | 338,215 | | Interest on lease liabilities | 621 | 520 | | Other borrowing costs | 1,907 | 2,963 | | Less: Capitalised into properties under development | (37,462) | (42,839) | | Bank charges and others | 68,970 | 42,906 | | Net exchange losses/(gains) | 2,524 | (2,874) | | **Total Finance Income** | **(125,523)** | **(122,803)** | | **Total Finance Costs** | **293,809** | **338,891** | [Other Expense Details](index=13&type=section&id=2.5.2%20Other%20Expense%20Details) Total depreciation and amortization decreased, staff costs increased, R&D costs remained stable, and impairment losses reversed Other Expense Details (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Amortisation of intangible assets | 18,653 | 20,611 | | Depreciation of property, plant and equipment | 14,787 | 19,076 | | Depreciation of right-of-use assets | 8,980 | 11,393 | | **Total Depreciation and Amortisation** | **42,420** | **51,080** | | Salaries, wages and other benefits | 136,454 | 119,102 | | Contributions to defined contribution retirement plans | 9,950 | 10,479 | | **Total Staff Costs** | **146,404** | **129,581** | | Research and development costs | 7,223 | 7,255 | | Net impairment losses under ECL model | (27,034) | (15,341) | [Income Tax](index=13&type=section&id=2.6%20Income%20Tax) Income tax expense significantly decreased due to reversal of prior year over-provision for China corporate income tax Income Tax Details (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current tax (China corporate income tax) | 14,561 | 22,635 | | Current tax (China land appreciation tax) | – | 1,015 | | Over-provision in prior years (China corporate income tax) | (151,121) | – | | Deferred tax | 173,158 | 74,222 | | **Total Income Tax** | **36,598** | **97,872** | - Some Chinese subsidiaries enjoy preferential corporate income tax rates of **15% or 9%** under specific development strategies or enterprise regulations[28](index=28&type=chunk) - The Group expects Pillar Two rules to have no material impact on its income tax position, as Singapore's effective tax rate exceeds 15% and China has not yet implemented relevant legislation[29](index=29&type=chunk) [Earnings Per Share](index=15&type=section&id=2.7%20Earnings%20Per%20Share) Basic earnings per share increased by 95% to RMB 0.78 cents, driven by higher profit attributable to equity holders Earnings Per Share (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit attributable to ordinary equity holders of the Company (RMB thousands) | 97,051 | 49,817 | | Weighted average number of ordinary shares in issue (thousands) | 12,399,506 | 12,399,506 | | Basic and diluted earnings per share (RMB cents) | 0.78 | 0.40 | - Unexercised share options did not result in potential diluted ordinary shares, as their exercise price exceeded the average market price of ordinary shares for the periods[32](index=32&type=chunk) [Investment Properties](index=15&type=section&id=2.8%20Investment%20Properties) Investment properties were revalued, recognizing a net fair value gain, with a significant portion pledged for borrowings - Investment properties were revalued by independent valuers as of June 30, 2025, recognizing a net fair value gain of **RMB 305.747 million**[33](index=33&type=chunk) - As of June 30, 2025, the Group had pledged completed investment properties and investment properties under development with a total carrying amount of **RMB 11.961 billion** for interest-bearing borrowings[33](index=33&type=chunk) [Property, Plant and Equipment](index=15&type=section&id=2.9%20Property%2C%20Plant%20and%20Equipment) New right-of-use assets and property additions were recognized, with some buildings lacking certificates or being pledged - For the six months ended June 30, 2025, the Group recognized new right-of-use assets of **RMB 5.185 million** and additions to property, plant and equipment totaling **RMB 19.939 million**[34](index=34&type=chunk) - As of June 30, 2025, certain buildings with a net carrying amount of **RMB 45.375 million** lacked property ownership certificates, and buildings with a net carrying amount of **RMB 28.275 million** were pledged[34](index=34&type=chunk) [Trade and Other Receivables](index=16&type=section&id=2.10%20Trade%20and%20Other%20Receivables) Total trade and other receivables increased to RMB 28.563 billion, with trade receivables and advances to suppliers as main components Trade and Other Receivables Details (As of June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade receivables (net of loss allowance) | 10,097,931 | 8,725,888 | | Loans and factoring receivables (net of loss allowance) | 1,225,829 | 1,282,860 | | Advances to suppliers | 15,439,028 | 13,981,971 | | Other receivables, deposits and prepayments | 1,799,857 | 2,296,209 | | **Total** | **28,562,645** | **26,286,928** | - As of June 30, 2025, the Group pledged other receivables of **RMB 250,000** for interest-bearing borrowings[35](index=35&type=chunk) [Ageing Analysis of Trade Receivables](index=16&type=section&id=2.10.1%20Ageing%20Analysis%20of%20Trade%20Receivables) Total trade receivables were RMB 10.098 billion, with the majority (96.6%) aged within six months Ageing Analysis of Trade Receivables (As of June 30) | Ageing | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 6 months | 9,754,517 | 7,739,161 | | Over 6 months but within 12 months | 234,728 | 821,325 | | Over 12 months | 108,686 | 165,402 | | **Total** | **10,097,931** | **8,725,888** | [Loans and Factoring Receivables](index=16&type=section&id=2.10.2%20Loans%20and%20Factoring%20Receivables) Total loans and factoring receivables were RMB 1.226 billion, mostly aged within six months, with secured loans being a larger proportion Loans and Factoring Receivables Details (As of June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Secured loans receivable (net of loss allowance) | 1,087,346 | 1,106,477 | | Factoring receivables (net of loss allowance) | 138,483 | 176,383 | | **Total** | **1,225,829** | **1,282,860** | Ageing Analysis of Loans and Factoring Receivables (As of June 30) | Ageing | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 6 months | 1,142,061 | 1,077,822 | | Over 6 months but within 12 months | 30,335 | 117,935 | | Over 12 months | 53,433 | 87,103 | | **Total** | **1,225,829** | **1,282,860** | [Trade and Other Payables](index=17&type=section&id=2.11%20Trade%20and%20Other%20Payables) Total trade and other payables decreased slightly to RMB 18.380 billion, with most aged within six months Trade and Other Payables Details (As of June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade payables and bills payable | 13,531,298 | 14,779,661 | | Receipts in advance | 71,914 | 76,313 | | Other payables and accrued expenses | 4,776,998 | 3,899,336 | | **Total** | **18,380,210** | **18,755,310** | Ageing Analysis of Trade Payables and Bills Payable (As of June 30) | Ageing | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 6 months | 12,112,634 | 13,737,077 | | Over 6 months but within 12 months | 1,223,104 | 727,534 | | Over 12 months | 195,560 | 315,050 | | **Total** | **13,531,298** | **14,779,661** | - Pledged bank deposits of **RMB 7.189 billion** were used as collateral for bills payable as of June 30, 2025[40](index=40&type=chunk) [Interest-bearing Borrowings](index=18&type=section&id=2.12%20Interest-bearing%20Borrowings) Total interest-bearing borrowings decreased by 7.7% to RMB 13.685 billion, with current borrowings remaining high Interest-bearing Borrowings Carrying Amount Analysis (As of June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | **Current** | | | | Bank and other financial institution loans | 3,912,200 | 4,985,867 | | Other loans | 1,937,089 | 1,996,716 | | Loans from entities controlled by ultimate holding company | 20,000 | 20,000 | | Discounted bank acceptance bills | 3,770,840 | 4,565,569 | | **Total Current** | **9,640,129** | **11,568,152** | | **Non-current** | | | | Bank and other financial institution loans | 2,184,043 | 1,316,019 | | Other loans | 1,860,603 | 1,947,266 | | **Total Non-current** | **4,044,646** | **3,263,285** | | **Total** | **13,684,775** | **14,831,437** | [Bank and Other Financial Institution Loans](index=19&type=section&id=2.12.1%20Bank%20and%20Other%20Financial%20Institution%20Loans) Total bank and other financial institution loans amounted to RMB 6.096 billion, mostly secured/guaranteed, with some repayable on demand Bank and Other Financial Institution Loans Details (As of June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Secured/guaranteed | 5,319,765 | 5,124,272 | | Unsecured | 776,478 | 1,177,614 | | **Total** | **6,096,243** | **6,301,886** | - As of June 30, 2025, **RMB 159.4 million** in bank and other financial institution loans were repayable on demand due to breaches of financial covenants[43](index=43&type=chunk) - As of June 30, 2025, **RMB 3.732 billion** in bank and other financial institution loans were secured by Group assets with a total carrying amount of **RMB 12.439 billion**[42](index=42&type=chunk) [Other Loans](index=20&type=section&id=2.12.2%20Other%20Loans) Total other loans amounted to RMB 3.798 billion, all unsecured, with fixed annual interest rates from 4.00% to 12.00% - As of June 30, 2025, total other loans amounted to **RMB 3.798 billion**, all unsecured, bearing fixed annual interest rates ranging from **4.00% to 12.00%**[44](index=44&type=chunk) [Loans from Entities Controlled by Ultimate Holding Company](index=20&type=section&id=2.12.3%20Loans%20from%20Entities%20Controlled%20by%20Ultimate%20Holding%20Company) Loans from entities controlled by the ultimate holding company amounted to RMB 20 million, unsecured, with a fixed annual interest rate of 5% - Loans from entities controlled by the ultimate holding company amounted to **RMB 20 million**, unsecured, bearing a fixed annual interest rate of **5%**[46](index=46&type=chunk) [Discounted Bank Acceptance Bills](index=20&type=section&id=2.12.4%20Discounted%20Bank%20Acceptance%20Bills) The Group held discounted bank acceptance bills of RMB 3.771 billion, retaining all risks and rewards, thus recognizing them in full - The Group held discounted bank acceptance bills of **RMB 3.771 billion**, retaining all risks and rewards, including default risk, and thus continues to recognize these instruments in full[46](index=46&type=chunk) [Capital, Reserves and Dividends](index=21&type=section&id=2.13%20Capital%2C%20Reserves%20and%20Dividends) The Group aims to ensure continuous operation and shareholder returns, managing capital structure through various adjustments and monitoring the adjusted net debt to capital ratio [Dividends](index=21&type=section&id=2.13.1%20Dividends) The Board does not recommend an interim dividend for the six months ended June 30, 2025, and no final dividend was approved for the prior fiscal year - The Board does not recommend an interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[50](index=50&type=chunk) - For the six months ended June 30, 2025, no final dividend was approved or paid for the prior fiscal year (six months ended June 30, 2024: nil)[48](index=48&type=chunk) [Capital Management](index=21&type=section&id=2.13.2%20Capital%20Management) The Group manages its capital structure by monitoring the adjusted net debt to capital ratio, which increased to 33.43% - The Group's primary objective in managing capital is to safeguard its ability to continue as a going concern, providing returns to shareholders and stakeholders by pricing products and services commensurate with risk and obtaining financing at reasonable cost[49](index=49&type=chunk) Adjusted Net Debt to Capital Ratio (As of June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Total borrowings | 13,710,993 | 14,861,164 | | Less: Pledged bank deposits | (7,494,483) | (10,014,072) | | Less: Cash and cash equivalents | (1,531,290) | (1,545,952) | | Adjusted Net Debt | 4,685,220 | 3,301,140 | | Total equity attributable to equity holders of the Company | 14,016,047 | 13,951,217 | | **Adjusted Net Debt to Capital Ratio** | **33.43%** | **23.66%** | [Management Discussion and Analysis](index=23&type=section&id=Management%20Discussion%20and%20Analysis) This section discusses the Group's business review, operating results, liquidity, and future outlook [Business Review](index=23&type=section&id=3.1%20Business%20Review) The Group's business primarily consists of consumer goods wholesale trade and supply chain management and trading, continuously deepening digital-real integration and expanding new business models - The Group's business is primarily divided into two major segments: consumer goods wholesale trade and supply chain management and trading[14](index=14&type=chunk) [Consumer Goods Wholesale Trade](index=23&type=section&id=3.1.1%20Consumer%20Goods%20Wholesale%20Trade) Hankoubei International Trade City focuses on market upgrades, developing new models, and deepening integration to build a national commodity supply chain base - Hankoubei International Trade City has formed **30 large-scale comprehensive specialized market clusters**, accelerating its development into 'China's largest and world-leading' supply chain management and commercial logistics platform[52](index=52&type=chunk) - Hankoubei continues to innovate, introducing diversified commercial resources, accelerating the construction of new experiential consumption transaction scenarios, and deepening digital-real integration to promote the vigorous development of live e-commerce[53](index=53&type=chunk)[55](index=55&type=chunk) - Hankoubei and SF Group jointly built the Huahu Airport Hankoubei Cargo Station, achieving three-dimensional empowerment of 'aviation hub + commercial market + intelligent manufacturing technology' and accelerating 'one-stop overseas' channels for advantageous industries[54](index=54&type=chunk) [Supply Chain Management and Trading](index=25&type=section&id=3.1.2%20Supply%20Chain%20Management%20and%20Trading) The Group operates B2B platforms for agricultural products, chemical plastics, steel, and energy, enhancing efficiency and risk management through digital innovation - The Group has built and operates a matrix of B2B trading platforms for agricultural products, chemical plastics, steel, and energy[57](index=57&type=chunk) - Zhongnongwang (agricultural products B2B platform) achieved operating revenue of **RMB 24.5 billion**, strengthening domestic sugar supply chain control and expanding into high-value-added areas like coffee and spices through digital empowerment[58](index=58&type=chunk)[59](index=59&type=chunk) - Huashuhui (chemical and plastic B2B platform) achieved operating revenue of approximately **RMB 10.1 billion**, with **56,088 cumulative customers**, by refining distribution strategies, adding aromatic product channels, and building a TMS system for logistics efficiency[60](index=60&type=chunk)[61](index=61&type=chunk) - Zhuoganglian (ferrous bulk commodity platform) built an ecosystem of smart trading and supply chain services, collaborating with **16 financial institutions** and deploying **32 standard warehouses** across **260 cities**, achieving operating revenue of approximately **RMB 7.5 billion**[62](index=62&type=chunk) - CIC (World Commodity Intelligent Trading Center) achieved operating revenue of approximately **RMB 32.2 billion**, with **16,965 registered users** and transaction volume exceeding **USD 37.5 billion**, by leveraging blockchain technology to reduce international trade risks[63](index=63&type=chunk) [Future Outlook](index=28&type=section&id=3.2%20Future%20Outlook) Zall Smart Commerce will enhance digital technology, build a comprehensive service architecture, and extend its reach across the industry chain to create a collaborative ecosystem - Zall Smart Commerce will increase digital technology R&D and application, building a "B2B transaction services + supply chain services + digital technology cloud services" architecture focused on "new trade models" using big data and AI[64](index=64&type=chunk) - The company will leverage industrial advantages to extend service reach across the industry chain, enhancing operational efficiency and value, strengthening stability and resilience, and collaborating with partners to build an open, collaborative, and win-win industrial ecosystem[64](index=64&type=chunk) [Investment Portfolio](index=29&type=section&id=3.3%20Investment%20Portfolio) The Group holds listed equity securities in Fullshare Holdings Limited, recognizing an unrealized holding loss, with this investment being a minimal proportion of total assets Listed Equity Investment Portfolio (As of June 30) | Investee Company Name | Stock Code | Number of Shares Held | Effective Equity Interest | Acquisition Cost (RMB thousands) | Carrying Amount (RMB thousands) | Unrealized Holding Loss (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Fullshare Holdings Limited | 00607 | 11,819,250 | 1.86% | 620,157 | 4,419 | 1,053 | - For the six months ended June 30, 2025, the Group recognized an unrealized holding loss of approximately **RMB 1.1 million**, with this investment's carrying amount accounting for less than **0.01%** of the Group's total assets[65](index=65&type=chunk) [Operating Results](index=30&type=section&id=3.4%20Operating%20Results) Operating revenue significantly increased, but gross profit margin declined, while profit for the period grew due to reduced income tax and lower finance costs [Operating Revenue](index=30&type=section&id=3.4.1%20Operating%20Revenue) Total revenue increased by 33.2% to RMB 90.9215 billion, primarily driven by expanded supply chain management and trading business - The Group's revenue increased by approximately **33.2%** from approximately **RMB 68.2764 billion** for the six months ended June 30, 2024, to approximately **RMB 90.9215 billion** for the six months ended June 30, 2025, primarily due to increased revenue from supply chain management and trading business[67](index=67&type=chunk) - For the six months ended June 30, 2025, revenue from the Group's supply chain management and trading business contributed approximately **99.7%** of total turnover, an increase of approximately **33.3%** year-on-year[68](index=68&type=chunk) - The Group's rental income decreased from approximately **RMB 122.4 million** to approximately **RMB 117.0 million**, mainly due to a decrease in leased area during the reporting period[69](index=69&type=chunk) - Revenue from sales of properties and related services decreased by approximately **15.4%** from approximately **RMB 54.3 million** to approximately **RMB 46.0 million**, primarily due to a decrease in delivered property gross floor area[71](index=71&type=chunk) [Cost of Sales and Gross Profit](index=31&type=section&id=3.4.2%20Cost%20of%20Sales%20and%20Gross%20Profit) Cost of sales increased with revenue, but gross profit decreased by 23.8% to RMB 277.3 million, with gross profit margin falling to 0.3% - The Group's cost of sales increased by approximately **33.5%** from approximately **RMB 67.9126 billion** to approximately **RMB 90.6441 billion**, consistent with the increase in revenue[72](index=72&type=chunk) - The Group's gross profit decreased by approximately **23.8%** from approximately **RMB 363.8 million** to approximately **RMB 277.3 million**, with the gross profit margin falling from **0.5% to 0.3%**, primarily due to a decrease in the gross profit margin of the supply chain management and trading business[73](index=73&type=chunk) [Other Net Income](index=32&type=section&id=3.4.3%20Other%20Net%20Income) Other net income significantly decreased by 65.3% to RMB 19.1 million, due to reduced government grants and fair value changes - The Group's other net income decreased by approximately **65.3%** from approximately **RMB 55.1 million** to **RMB 19.1 million**, primarily due to reduced government grants, lower net gain from fair value changes of forward contracts, and non-recognition of prior period contingent consideration net gain[74](index=74&type=chunk) [Selling and Distribution Expenses](index=32&type=section&id=3.4.4%20Selling%20and%20Distribution%20Expenses) Selling and distribution expenses increased by 20.1% to RMB 147.6 million, primarily due to increased promotion expenses - The Group's selling and distribution expenses increased by approximately **20.1%** from **RMB 122.8 million** to approximately **RMB 147.6 million**, mainly due to an increase in promotion expenses of approximately **RMB 25.3 million**[75](index=75&type=chunk) [Administrative and Other Expenses](index=32&type=section&id=3.4.5%20Administrative%20and%20Other%20Expenses) Administrative and other expenses increased by 3.5% to RMB 200.6 million, influenced by increased staff costs and reduced professional fees and depreciation - The Group's administrative and other expenses increased by approximately **3.5%** from approximately **RMB 193.7 million** to approximately **RMB 200.6 million**, primarily due to increased staff costs, decreased professional fees, and decreased depreciation expenses[76](index=76&type=chunk) [Net Impairment Losses under ECL Model](index=32&type=section&id=3.4.6%20Net%20Impairment%20Losses%20under%20ECL%20Model) The Group reversed expected credit losses of RMB 18.1 million, a significant improvement from prior period impairment losses - For the six months ended June 30, 2025, the Group reversed impairment losses under the expected credit loss model of approximately **RMB 18.1 million**, compared to recognizing impairment losses of approximately **RMB 42.6 million** in the prior period, primarily due to improved impairment losses on various receivables[77](index=77&type=chunk) [Net Gain from Investment Property Valuation](index=33&type=section&id=3.4.7%20Net%20Gain%20from%20Investment%20Property%20Valuation) Net gain from investment property valuation increased by 3.8% to RMB 305.7 million, primarily due to new properties transferred to investment properties - Net gain from investment property valuation increased by approximately **3.8%** from approximately **RMB 294.5 million** to approximately **RMB 305.7 million**, primarily due to new properties transferred to investment properties during the period[78](index=78&type=chunk) [Finance Income and Costs](index=33&type=section&id=3.4.8%20Finance%20Income%20and%20Costs) Finance income slightly increased by 2.2%, while finance costs significantly decreased by 13.3% due to interest waivers - The Group's finance income increased by approximately **2.2%** from approximately **RMB 122.8 million** to approximately **RMB 125.5 million**, while finance costs decreased by approximately **13.3%** from approximately **RMB 338.9 million** to approximately **RMB 293.8 million**, primarily due to a waiver of interest on interest-bearing borrowings[79](index=79&type=chunk) [Share of Net (Loss)/Profit of Associates and Joint Ventures](index=33&type=section&id=3.4.9%20Share%20of%20Net%20(Loss)%2FProfit%20of%20Associates%20and%20Joint%20Ventures) Share of net loss from associates increased, while share of net profit from joint ventures turned positive due to increased profit from one joint venture - Share of net loss from associates for the six months ended June 30, 2025, was approximately **RMB 4.8 million**, compared to a net profit of approximately **RMB 0.7 million** in the prior period, primarily due to increased net losses from certain associates[80](index=80&type=chunk) - The Group's share of net profit from joint ventures for the six months ended June 30, 2025, was approximately **RMB 7.4 million**, compared to a net loss of approximately **RMB 0.2 million** in the prior period, primarily due to increased profit from one joint venture[81](index=81&type=chunk) [Income Tax](index=34&type=section&id=3.4.10%20Income%20Tax) Income tax decreased by 62.6% to RMB 36.6 million, primarily due to the reversal of over-provision for China corporate income tax - Income tax decreased by approximately **62.6%** from approximately **RMB 97.9 million** to approximately **RMB 36.6 million**, primarily due to the reversal of over-provision for China corporate income tax of approximately **RMB 40.0 million** in prior years[82](index=82&type=chunk) [Profit for the Period](index=34&type=section&id=3.4.11%20Profit%20for%20the%20Period) The Group's profit for the period significantly increased by 71.7% to RMB 70.0 million - For the six months ended June 30, 2025, the Group recorded a net profit of approximately **RMB 70.0 million**, an increase of approximately **71.7%** compared to approximately **RMB 40.8 million** in the prior period[83](index=83&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=3.5%20Liquidity%20and%20Capital%20Resources) Net current liabilities improved but remained negative, total equity remained stable, and the company is managing liquidity through various measures - As of June 30, 2025, the Group's net current liabilities were approximately **RMB 4.173 billion** (December 31, 2024: approximately **RMB 4.7251 billion**) and total equity was approximately **RMB 14.3807 billion** (December 31, 2024: approximately **RMB 14.343 billion**)[84](index=84&type=chunk) - The Group is implementing measures to manage liquidity and improve its financial position, including increasing operating cash inflows, negotiating debt extensions or refinancing, considering equity financing, and disposing of non-core assets[84](index=84&type=chunk) [Cash Position and Treasury Policy](index=34&type=section&id=3.5.1%20Cash%20Position%20and%20Treasury%20Policy) Cash and cash equivalents were approximately RMB 1.5313 billion, with regular monitoring of funding and financial position - As of June 30, 2025, the Group's cash and cash equivalents were approximately **RMB 1.5313 billion** (December 31, 2024: approximately **RMB 1.546 billion**)[85](index=85&type=chunk) [Interest-bearing Borrowings](index=35&type=section&id=3.5.2%20Interest-bearing%20Borrowings) Total interest-bearing borrowings decreased by 7.7% to RMB 13.6848 billion, with most denominated in RMB - The Group's total interest-bearing borrowings decreased by approximately **7.7%** from approximately **RMB 14.8314 billion** as of December 31, 2024, to approximately **RMB 13.6848 billion** as of June 30, 2025[86](index=86&type=chunk) [Net Gearing Ratio](index=35&type=section&id=3.5.3%20Net%20Gearing%20Ratio) The net gearing ratio increased from 23.7% to 33.4%, primarily due to an increase in adjusted net debt - The Group's net gearing ratio increased from approximately **23.7%** to approximately **33.4%**, primarily due to an increase in adjusted net debt, despite decreases in total borrowings and pledged bank deposits[87](index=87&type=chunk) [Foreign Exchange Risk](index=35&type=section&id=3.5.4%20Foreign%20Exchange%20Risk) Sales are primarily denominated in RMB, and future exchange rate fluctuations are not expected to have a material impact, with no hedging instruments used - The Group's sales are primarily denominated in RMB, and the Board does not expect future exchange rate fluctuations to have a material impact on the business, with no financial instruments used for hedging as of June 30, 2025[88](index=88&type=chunk) [Pledged Assets](index=35&type=section&id=3.5.5%20Pledged%20Assets) The Group pledged assets totaling RMB 16.210 billion for interest-bearing borrowings and RMB 7.1891 billion for bills payable - As of June 30, 2025, the Group had pledged assets with a total carrying amount of approximately **RMB 16.210 billion** as collateral for interest-bearing borrowings, and approximately **RMB 7.1891 billion** as collateral for bills payable[89](index=89&type=chunk) [Material Acquisitions and Disposals](index=35&type=section&id=3.6%20Material%20Acquisitions%20and%20Disposals) The Group had no material acquisitions or disposals during the reporting period and will continue to seek opportunities to dispose of non-core assets - For the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries, associates, and/or joint ventures[90](index=90&type=chunk) - The Group will continue to seek opportunities to dispose of non-core assets and businesses to enhance liquidity and allocate resources to its core businesses[90](index=90&type=chunk) [Material Investments Held](index=36&type=section&id=3.7%20Material%20Investments%20Held) The Group's investment properties form the core of its offline markets, with ongoing investment and upgrades planned for Hankoubei International Trade City - Investment properties constitute the main part of the Group's offline markets, and the Group will continue to invest in and upgrade Hankoubei International Trade City to enhance market value through modern facilities and professional management[91](index=91&type=chunk) [Contingent Liabilities](index=36&type=section&id=3.8%20Contingent%20Liabilities) The Group provided mortgage financing guarantees for pre-sold property buyers and financial guarantees for third parties - As of June 30, 2025, guarantees provided for mortgage financing granted to buyers of the Group's properties amounted to approximately **RMB 68.8 million**[93](index=93&type=chunk) - The Group provided financial guarantees to third parties amounting to approximately **RMB 67.1 million**[93](index=93&type=chunk) [Events After Reporting Period](index=37&type=section&id=3.9%20Events%20After%20Reporting%20Period) As of the announcement date, the Group had no significant events after the reporting period - As of the date of this announcement, the Group had no significant events after the reporting period[95](index=95&type=chunk) [Employees and Remuneration Policy](index=37&type=section&id=3.10%20Employees%20and%20Remuneration%20Policy) The Group employed 1,558 full-time employees, with employee benefit expenses of RMB 146.4 million, and has incentive schemes in place - As of June 30, 2025, the Group employed a total of **1,558** full-time employees, with employee benefit expenses of approximately **RMB 146.4 million** for the six months ended June 30, 2025[96](index=96&type=chunk) - The Group has adopted a share option scheme and a share award scheme to provide incentives, but no new share options or awarded shares have been granted as of June 30, 2025[96](index=96&type=chunk)[97](index=97&type=chunk) [Other Information](index=37&type=section&id=Other%20Information) This section covers corporate governance, compliance, significant events, and board composition [Compliance with Corporate Governance Code](index=37&type=section&id=4.1%20Compliance%20with%20Corporate%20Governance%20Code) The Company has adopted and complied with the Corporate Governance Code set out in Appendix C1 Part 2 of the HKEX Listing Rules - The Company has adopted and complied with the Corporate Governance Code set out in Part 2 of Appendix C1 to the HKEX Listing Rules for the six months ended June 30, 2025[98](index=98&type=chunk) [Compliance with Model Code for Securities Transactions by Directors](index=38&type=section&id=4.2%20Compliance%20with%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all directors confirmed compliance - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 to the Listing Rules, and all Directors confirmed compliance for the six months ended June 30, 2025[99](index=99&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=38&type=section&id=4.3%20Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the reporting period - 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[100](index=100&type=chunk) [Review of Interim Results](index=38&type=section&id=4.4%20Review%20of%20Interim%20Results) The Review Committee has reviewed the Group's unaudited condensed consolidated interim results and discussed key financial reporting matters - The Review Committee has reviewed the Group's unaudited condensed consolidated interim results for the six months ended June 30, 2025, in accordance with Listing Rules 3.21 and 3.22 and its written terms of reference[101](index=101&type=chunk) [Interim Dividend](index=38&type=section&id=4.5%20Interim%20Dividend) The Board does not recommend an interim dividend for the six months ended June 30, 2025 - The Board does not recommend an interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[102](index=102&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=39&type=section&id=4.6%20Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This interim results announcement is published on the HKEX and Company websites, with the interim report to follow - This interim results announcement is published on the HKEX website and the Company's website, and the interim report will be published and dispatched to shareholders in due course[103](index=103&type=chunk) [Board Composition](index=39&type=section&id=4.7%20Board%20Composition) As of the announcement date, the Board of Directors comprises eight members, including five executive and three independent non-executive directors - As of the announcement date, the Board of Directors comprises eight members, including five executive directors and three independent non-executive directors[105](index=105&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告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告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。 Tianqi Lithium Corporation 天齊鋰業股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：9696） 截至2025年6月30日止六個月之未經審核中期業績公告 天齊鋰業股份有限公司（「本公司」）董事會（「董事會」）謹此宣佈本公司及其附屬 公司截至2025年6月30日止六個月之未經審核綜合業績。本公告列載本公司2025 年中期業績全文，並符合香港聯合交易所有限公司（「香港聯交所」）證券上市規則 中有關中期業績初步公告附載資料之相關要求。 釋義 DEFINITIONS | 「雅保」 | 指 | Albemarle Corporation，美國紐約證券交易所上市公司，其透過RT Lithium持 | | --- | --- | --- | | | | 有文菲爾德49%的股權，是全球重要的鋰產品生產企業之一 | | "Albemarle" | | Albemarle Co ...

Report Overview and Company Information [Announcement Statement](index=1&type=section&id=1.1.%20Announcement%20Statement) This announcement presents China Eastern Airlines' H1 2025 interim results, prepared under IAS 34, cautioning against over-reliance on these results for future performance prediction - This announcement presents the interim results of China Eastern Airlines Corporation Limited and its subsidiaries for the six months ended June 30, 2025[4](index=4&type=chunk) - The interim financial results were approved by the Board and the Audit and Risk Management Committee on August 29, 2025, and prepared in accordance with International Accounting Standard 34[4](index=4&type=chunk) - The report explicitly states that interim financial results do not necessarily indicate full-year and future performance, and investors should not over-rely on them[4](index=4&type=chunk) [Company Information](index=10&type=section&id=1.2.%20Company%20Information) China Eastern Airlines Corporation Limited, established in 1995, primarily operates civil aviation businesses including passenger, cargo, and mail transport, controlled by China Eastern Airholding Co. Ltd - China Eastern Airlines Corporation Limited was established in China on April 14, 1995, primarily operating civil aviation businesses[14](index=14&type=chunk) - The Company's controlling entity is China Eastern Airholding Co. Ltd., a state-owned enterprise[14](index=14&type=chunk) - The Company's A-shares and H-shares are listed on the Shanghai Stock Exchange and The Stock Exchange of Hong Kong Limited, respectively[15](index=15&type=chunk) [Basis of Preparation and Accounting Policies](index=10&type=section&id=1.3.%20Basis%20of%20Preparation%20and%20Accounting%20Policies) These condensed consolidated financial statements are prepared under IAS 34 and should be read with the 2024 annual consolidated financial statements, with the Board maintaining a going concern basis despite a net loss of RMB 1.59 billion and current liabilities exceeding current assets by RMB 95.13 billion - These condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and should be read in conjunction with the 2024 annual consolidated financial statements[18](index=18&type=chunk) - For the six months ended June 30, 2025, the Group incurred a net loss of **RMB 1.59 billion**, with current liabilities exceeding current assets by approximately **RMB 95.13 billion**[18](index=18&type=chunk) - The Board continues to prepare the financial statements on a going concern basis, supported by sufficient bank credit facilities, a sound credit profile, and projected net cash inflows from operating activities[18](index=18&type=chunk)[19](index=19&type=chunk) - Revisions to International Financial Reporting Standards were first applied during this interim period but did not have a significant impact on the financial position and performance[21](index=21&type=chunk) Condensed Consolidated Financial Statements [Condensed Consolidated Income Statement](index=2&type=section&id=2.1.%20Condensed%20Consolidated%20Income%20Statement) The Group's revenue grew to RMB 66.822 billion in H1 2025, with operating profit significantly increasing to RMB 484 million, yet a pre-tax loss of RMB 1.531 billion and a net loss attributable to equity holders of RMB 1.431 billion resulted in a basic loss per share of RMB 0.06, a substantial reduction in loss from the prior year Condensed Consolidated Income Statement Key Data (For the six months ended June 30) | Metric | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Revenue | 66,822 | 64,199 | 4.09% | | Other operating income and gains | 3,391 | 3,200 | 5.97% | | Total operating expenses | (69,729) | (67,359) | 3.52% | | Operating profit | 484 | 40 | 1110.00% | | Loss before tax | (1,531) | (2,841) | -46.11% | | Loss for the period | (1,592) | (3,099) | -48.62% | | Net loss attributable to equity holders of the Company | (1,431) | (2,768) | -48.30% | | Basic loss per share (RMB) | (0.06) | (0.12) | -50.00% | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=2.2.%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) The Group's total comprehensive loss for H1 2025 significantly narrowed to RMB 1.611 billion from RMB 3.295 billion in the prior year, with other comprehensive income items, including cash flow hedges and equity investment fair value changes, resulting in a net loss of RMB 19 million after tax Condensed Consolidated Statement of Comprehensive Income Key Data (For the six months ended June 30) | Metric | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Loss for the period | (1,592) | (3,099) | -48.62% | | Other comprehensive income, net of tax | (19) | (196) | -90.31% | | Total comprehensive income for the period | (1,611) | (3,295) | -51.11% | | Total comprehensive income attributable to equity holders of the Company | (1,450) | (2,956) | -50.95% | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=2.3.%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets were RMB 284.727 billion, a 2.11% increase from year-end 2024, with non-current assets comprising 92.55%, while net assets decreased to RMB 42.018 billion due to current liabilities exceeding current assets by approximately RMB 95.13 billion Condensed Consolidated Statement of Financial Position Key Data (As of June 30) | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Non-current assets | 263,513 | 259,739 | 1.45% | | Current assets | 21,214 | 19,103 | 11.05% | | Current liabilities | 116,348 | 114,003 | 2.06% | | Net current liabilities | (95,134) | (94,900) | 0.25% | | Non-current liabilities | 126,361 | 121,188 | 4.27% | | Net assets | 42,018 | 43,651 | -3.74% | | Total equity | 42,018 | 43,651 | -3.74% | - As of June 30, 2025, the Group's current liabilities exceeded current assets by approximately **RMB 95.13 billion**[7](index=7&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=6&type=section&id=2.4.%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) As of June 30, 2025, equity attributable to the Company's equity holders decreased to RMB 40.802 billion from RMB 42.774 billion at year-end 2024, primarily due to a period loss of RMB 1.431 billion, share repurchases of RMB 522 million, and perpetual bond interest of RMB 348 million, partially offset by a RMB 500 million capital injection from non-controlling interests in subsidiaries Condensed Consolidated Statement of Changes in Equity Key Data (For the six months ended June 30) | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Equity attributable to equity holders of the Company | 40,802 | 42,774 | -4.61% | | Non-controlling interests | 1,216 | 877 | 38.65% | | Total equity | 42,018 | 43,651 | -3.74% | - In H1 2025, the net loss attributable to equity holders of the Company was **RMB 1.431 billion**[9](index=9&type=chunk) - Share repurchases during the period resulted in a **RMB 522 million** reduction in equity[9](index=9&type=chunk) - Non-controlling interests in subsidiaries contributed **RMB 500 million** in capital[9](index=9&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=2.5.%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) The Group's net cash from operating activities increased by 17.06% to RMB 12.547 billion in H1 2025, while net cash used in investing activities significantly decreased to RMB 3.826 billion, and net cash used in financing activities was RMB 9.215 billion, resulting in a period-end cash and cash equivalents balance of RMB 3.599 billion, a decrease of RMB 494 million from the beginning of the period Condensed Consolidated Statement of Cash Flows Key Data (For the six months ended June 30) | Metric | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Net cash generated from operating activities | 12,547 | 10,718 | 17.06% | | Net cash used in investing activities | (3,826) | (7,329) | -47.80% | | Net cash used in financing activities | (9,215) | (11,522) | -20.02% | | Net decrease in cash and cash equivalents | (494) | (8,133) | -93.93% | | Cash and cash equivalents at end of period | 3,599 | 3,713 | -3.07% | - Cash generated from operating activities primarily amounted to **RMB 12.634 billion**, after deducting income tax paid of **RMB 87 million**[11](index=11&type=chunk) - The decrease in net cash used in investing activities was mainly due to **RMB 3.976 billion** received from the transfer of purchase rights[11](index=11&type=chunk) Notes to the Financial Statements [Segment Information](index=12&type=section&id=3.1.%20Segment%20Information) The Group primarily operates through its aviation business segment, which contributes the vast majority of revenue but incurs significant pre-tax losses, with most revenue generated domestically and international route income showing significant growth, while the aviation business experiences seasonal fluctuations with the second half of the year typically being a peak demand period [Business Segment Performance and Assets](index=12&type=section&id=3.1.1.%20Business%20Segment%20Performance%20and%20Assets) In H1 2025, the aviation business segment generated RMB 66.650 billion in revenue, accounting for the majority of total revenue, but reported a pre-tax loss of RMB 1.767 billion, a reduction from the prior year, while other business segments contributed minor profits, and the aviation business segment held the largest share of total assets at RMB 267.092 billion Segment Performance (For the six months ended June 30) | Metric | Aviation Business Segment (RMB million) | Other Business Segment (RMB million) | Total (RMB million) | | :--- | :--- | :--- | :--- | | 2025 Segment Revenue | 66,650 | 172 | 66,822 | | 2024 Segment Revenue | 64,044 | 155 | 64,199 | | 2025 Reported Segment Loss/Profit before Tax | (1,767) | 39 | (1,531) | | 2024 Reported Segment Loss/Profit before Tax | (3,155) | 168 | (2,841) | Segment Assets (As of June 30) | Metric | Aviation Business Segment (RMB million) | Other Business Segment (RMB million) | Total (RMB million) | | :--- | :--- | :--- | :--- | | June 30, 2025 Reported Segment Assets | 267,092 | 4,237 | 282,485 | | December 31, 2024 Reported Segment Assets | 261,705 | 4,275 | 276,600 | - Unallocated assets primarily include investments in associates and joint ventures, and derivative financial instruments[32](index=32&type=chunk) [Geographical Revenue Distribution and Seasonality](index=14&type=section&id=3.1.2.%20Geographical%20Revenue%20Distribution%20and%20Seasonality) In H1 2025, the Group's revenue primarily originated from mainland China, with international route revenue increasing by 20.34% year-on-year, indicating a recovery in the international market, while the aviation business is seasonal, with the second half of the year typically being the peak demand period Geographical Revenue Distribution (For the six months ended June 30) | Region | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Mainland China | 44,036 | 44,961 | -2.06% | | Hong Kong, Macau and Taiwan | 1,839 | 1,831 | 0.44% | | International | 20,947 | 17,407 | 20.34% | | Total | 66,822 | 64,199 | 4.09% | - The Group's aviation business experiences seasonal fluctuations, with holidays in the second half of each year being peak demand periods, and H1 revenue and performance typically lower than H2[34](index=34&type=chunk) [Revenue and Other Operating Income](index=16&type=section&id=3.2.%20Revenue%20and%20Other%20Operating%20Income) In H1 2025, the Group's total revenue was RMB 66.822 billion, predominantly from customer contracts, with passenger revenue as the main source and significant growth in international passenger revenue, while other operating income and gains totaled RMB 3.391 billion, primarily from code-share revenue Revenue Analysis (For the six months ended June 30) | Revenue Source | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Revenue from contracts with customers | 66,713 | 64,077 | 4.11% | | Revenue from other sources | 109 | 122 | -10.66% | | Total Revenue | 66,822 | 64,199 | 4.09% | Revenue from Contracts with Customers Breakdown (For the six months ended June 30) | Service Type | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Passenger revenue | 61,813 | 59,338 | 4.17% | | Cargo and mail revenue | 2,577 | 2,371 | 8.70% | | International and regional revenue | 20,947 | 17,407 | 20.34% | Other Operating Income and Gains (For the six months ended June 30) | Item | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Code-share revenue | 2,335 | 2,320 | 0.65% | | Route subsidies | 96 | 323 | -70.28% | | Other subsidy income | 692 | 307 | 125.41% | | Total | 3,391 | 3,200 | 5.97% | [Finance Costs and Taxation](index=18&type=section&id=3.3.%20Finance%20Costs%20and%20Taxation) In H1 2025, the Group's finance costs decreased by 28.24% year-on-year to RMB 2.216 billion, primarily due to reduced interest on lease liabilities and net exchange losses, while income tax expense significantly decreased by 76.4% to RMB 61 million, mainly due to a smaller pre-tax loss and preferential tax rates for some subsidiaries Finance Costs (For the six months ended June 30) | Item | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Interest on lease liabilities | 1,115 | 1,540 | -27.60% | | Interest on bank borrowings | 1,059 | 1,084 | -2.29% | | Net exchange losses | 9 | 378 | -97.62% | | Total finance costs | 2,216 | 3,088 | -28.24% | Income Tax Expense (For the six months ended June 30) | Item | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Current income tax | 50 | 90 | -44.44% | | Deferred income tax | 11 | 168 | -93.45% | | Total income tax expense | 61 | 258 | -76.40% | - Some subsidiaries, such as Eastern Airlines Yunnan, Eastern Airlines E-commerce, and Eastern Airlines Technology Application Research Center, enjoy a **15% preferential income tax rate**[42](index=42&type=chunk)[43](index=43&type=chunk) [Loss Per Share and Dividends](index=19&type=section&id=3.4.%20Loss%20Per%20Share%20and%20Dividends) In H1 2025, the basic loss per share attributable to the Company's equity holders significantly narrowed to RMB 0.06 from RMB 0.12 in the prior year, and the Board did not recommend an interim dividend Loss Per Share (For the six months ended June 30) | Metric | 2025 (RMB) | 2024 (RMB) | Change | | :--- | :--- | :--- | :--- | | Basic loss per share | (0.06) | (0.12) | -50.00% | - Basic loss per share is calculated based on the consolidated loss attributable to equity holders of the Company of **RMB 1.431 billion** and the weighted average number of ordinary shares outstanding of **22.182 billion shares**[45](index=45&type=chunk) - The Board recommended no interim dividend for the six months ended June 30, 2025[44](index=44&type=chunk) [Notes to Key Items in the Statement of Financial Position](index=20&type=section&id=3.5.%20Notes%20to%20Key%20Items%20in%20the%20Statement%20of%20Financial%20Position) This section details key items in the Group's statement of financial position, including property, plant and equipment, right-of-use assets, intangible assets, trade and other receivables/payables, borrowings, share capital, and capital commitments, with varying changes reflecting the Group's activities in fleet expansion, asset transfers, debt management, and capital expenditures [Property, Plant and Equipment](index=20&type=section&id=3.5.1.%20Property,%20Plant%20and%20Equipment) As of June 30, 2025, the carrying amount of property, plant and equipment was RMB 105.572 billion, a 2.17% increase from the beginning of the period, primarily due to additions and transfers from right-of-use assets, partially offset by depreciation and disposals Carrying Amount of Property, Plant and Equipment (As of June 30) | Item | June 30, 2025 (RMB million) | January 1, 2025 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Aircraft, engines and flight equipment | 87,443 | 85,683 | 2.05% | | Others | 18,129 | 17,647 | 2.73% | | Total | 105,572 | 103,330 | 2.17% | - Additions during the period amounted to **RMB 4.452 billion**, with **RMB 4.044 billion** transferred from right-of-use assets[47](index=47&type=chunk) - Depreciation for the period amounted to **RMB 6.072 billion**[47](index=47&type=chunk) [Right-of-Use Assets](index=21&type=section&id=3.5.2.%20Right-of-Use%20Assets) As of June 30, 2025, the carrying amount of right-of-use assets was RMB 115.781 billion, a 3.09% increase from the beginning of the period, mainly due to new leases increasing right-of-use assets by RMB 14.064 billion, partially offset by transfers to property, plant and equipment and depreciation Carrying Amount of Right-of-Use Assets (As of June 30) | Item | June 30, 2025 (RMB million) | January 1, 2025 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Aircraft, engines and flight equipment | 109,891 | 108,298 | 1.47% | | Others | 5,890 | 4,135 | 42.46% | | Total | 115,781 | 112,433 | 3.09% | - Right-of-use assets increased by **RMB 14.064 billion** during the period[48](index=48&type=chunk) - Depreciation for the period amounted to **RMB 6.764 billion**[48](index=48&type=chunk) [Intangible Assets](index=21&type=section&id=3.5.3.%20Intangible%20Assets) As of June 30, 2025, the carrying amount of intangible assets was RMB 11.613 billion, a slight increase from the beginning of the period, with goodwill accounting for the vast majority, primarily arising from the acquisition of Shanghai Airlines to enhance competitiveness and synergy Carrying Amount of Intangible Assets (As of June 30) | Item | June 30, 2025 (RMB million) | January 1, 2025 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Goodwill | 11,272 | 11,272 | 0.00% | | Others | 341 | 331 | 3.02% | | Total | 11,613 | 11,603 | 0.09% | - Goodwill primarily arose from the acquisition of Shanghai Airlines, aiming to enhance air transport competitiveness, achieve synergies, and promote the development of Shanghai as an international shipping center[49](index=49&type=chunk) [Trade and Other Receivables and Payables](index=22&type=section&id=3.5.4.%20Trade%20and%20Other%20Receivables%20and%20Payables) As of June 30, 2025, trade and other receivables totaled RMB 3.051 billion, a 56.54% increase from year-end 2024, primarily concentrated within 90 days, while trade and other payables amounted to RMB 15.610 billion, a 7.54% increase from year-end 2024, with the largest proportion due within 91-180 days Trade and Other Receivables (As of June 30) | Item | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Trade and other receivables | 3,154 | 2,047 | 54.08% | | Less: Impairment allowance | (103) | (98) | 5.10% | | Net amount | 3,051 | 1,949 | 56.54% | Trade and Other Payables (As of June 30) | Ageing | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Within 90 days | 5,875 | 3,388 | 73.42% | | 91 to 180 days | 9,480 | 10,838 | -12.53% | | Total | 15,610 | 14,515 | 7.54% | [Borrowings and Share Capital](index=23&type=section&id=3.5.5.%20Borrowings%20and%20Share%20Capital) As of June 30, 2025, the Group's total borrowings amounted to RMB 105.808 billion, a 2.55% increase from year-end 2024, with RMB 55.456 billion as non-current and RMB 50.352 billion as current, after repaying RMB 3.5 billion in bonds during the period, while total share capital remained at RMB 22.291 billion, comprising A-shares and H-shares with equal rights Total Borrowings (As of June 30) | Item | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Non-current portion | 55,456 | 53,598 | 3.47% | | Current portion | 50,352 | 49,576 | 1.57% | | Total | 105,808 | 103,174 | 2.55% | - The Group's bank borrowings are secured by related aircraft with a carrying amount of **RMB 21.253 billion**[52](index=52&type=chunk) - During the period, the Group repaid three-year medium-term notes totaling **RMB 3.5 billion**[52](index=52&type=chunk) Share Capital Structure (As of June 30) | Share Type | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | A-shares | 17,114 | 17,114 | | H-shares | 5,177 | 5,177 | | Total | 22,291 | 22,291 | [Commitments](index=25&type=section&id=3.5.6.%20Commitments) As of June 30, 2025, the Group's total capital expenditure commitments were RMB 74.550 billion, a 14.20% decrease from year-end 2024, with commitments for aircraft, engines, and flight equipment accounting for the vast majority, and significant expenditures expected within the next three years Capital Expenditure Commitments (As of June 30) | Item | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Aircraft, engines and flight equipment | 71,878 | 81,464 | -11.76% | | Other property, plant and equipment | 2,630 | 5,252 | -49.92% | | Investments | 42 | 174 | -75.86% | | Total | 74,550 | 86,890 | -14.20% | Expected Expenditure for Aircraft, Engines and Flight Equipment Commitments (As of June 30) | Period | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Within 1 year | 22,567 | 27,736 | | Second year | 20,341 | 21,518 | | Third year | 14,159 | 15,191 | | Over 3 years | 14,811 | 17,019 | | Total | 71,878 | 81,464 | [Related Party Transactions](index=26&type=section&id=3.6.%20Related%20Party%20Transactions) The Group engaged in extensive transactions with related parties, including China Eastern Airholding Co. Ltd. and its subsidiaries, and other state-owned enterprises, covering procurement of products and services, provision of services, leasing, and financial services, with pricing primarily based on market rates or mutual agreement, and significant balances of receivables and payables with related parties, notably Eastern Airlines Logistics and Eastern Airlines Leasing, as of June 30, 2025 [List of Related Parties](index=27&type=section&id=3.6.1.%20List%20of%20Related%20Parties) The Group's related parties include associates, joint ventures, entities under common control, and other companies where the Company's key management personnel hold positions, such as Eastern Airlines Finance, Shanghai Pratt & Whitney, Eastern Airlines Logistics, TravelSky, and Air France-KLM - Related parties include Eastern Airlines Group Finance Co., Ltd., Shanghai Pratt & Whitney Aircraft Engine Maintenance Co., Ltd., Eastern Airlines Logistics Co., Ltd., TravelSky Technology Limited, and others[60](index=60&type=chunk) - Related party relationships encompass associates, joint ventures, entities under common control, and companies where key management personnel hold positions[60](index=60&type=chunk) [Details of Related Party Transactions](index=28&type=section&id=3.6.2.%20Details%20of%20Related%20Party%20Transactions) In H1 2025, the Group conducted various transactions with related parties, with major expenditures in procuring products and services including aircraft and engine maintenance, and catering and cabin supplies, while exclusive operating transport revenue related to passenger aircraft cargo business was a primary source of service income, and significant leasing activities involved settling aircraft and engine lease liabilities and increasing right-of-use assets from new leases, all transacted at mutually agreed prices Major Related Party Transactions (For the six months ended June 30) | Nature of Transaction | Related Party | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | :--- | | Procurement of catering and cabin supplies | Eastern Airlines Food | 1,586 | 1,545 | | Aircraft and engine maintenance and repair expenses | Shanghai Pratt & Whitney | 2,074 | 1,613 | | Acceptance of civil aviation information network services | TravelSky | 695 | 361 | | Exclusive operating transport revenue related to passenger aircraft cargo business | Eastern Airlines Logistics | 2,577 | 2,371 | | Settlement of aircraft and engine lease liabilities | Eastern Airlines Leasing | 3,233 | 6,505 | | Increase in right-of-use assets due to new leases (aircraft and engines) | Eastern Airlines Leasing | 6,678 | 462 | | Interest expense on perpetual bonds | China Eastern Airholding Co. Ltd. | 348 | 294 | - The prices for the Group's procurement and provision of services to related parties, as well as leasing service prices, are determined through mutual negotiation[70](index=70&type=chunk)[71](index=71&type=chunk) [Related Party Balances](index=33&type=section&id=3.6.3.%20Related%20Party%20Balances) As of June 30, 2025, the Group's total receivables from related parties amounted to RMB 1.101 billion, with Eastern Airlines Logistics being the largest contributor, while total payables to related parties were RMB 3.429 billion, primarily to TravelSky and Shanghai Pratt & Whitney, and Eastern Airlines Leasing accounted for the highest proportion of lease liabilities, with significant balances also existing for short-term deposits, loans, and borrowings with related parties Receivables from Related Parties (As of June 30) | Related Party | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Eastern Airlines Logistics | 1,047 | 682 | 53.52% | | Total | 1,101 | 748 | 47.19% | Payables to Related Parties (As of June 30) | Related Party | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | TravelSky | 1,598 | 985 | 62.23% | | Shanghai Pratt & Whitney | 932 | 642 | 45.17% | | Total | 3,429 | 2,423 | 41.52% | Short-term Deposits, Loans and Borrowings with Related Parties (As of June 30) | Item | Related Party | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | :--- | | Short-term deposits | Eastern Airlines Finance | 2,032 | 2,774 | | Short-term borrowings | China Eastern Airholding Co. Ltd. | 1,701 | 1,701 | | Long-term borrowings | China Eastern Airholding Co. Ltd. | 6,904 | 1,001 | - As of June 30, 2025, the Group's bonds guaranteed by China Eastern Airholding Co. Ltd. amounted to **RMB 1.535 billion**[86](index=86&type=chunk) [Fair Value Estimation of Financial Instruments](index=37&type=section&id=3.7.%20Fair%20Value%20Estimation%20of%20Financial%20Instruments) The Group measures the fair value of financial instruments using a three-level hierarchy, with the total fair value of equity investments designated at fair value through other comprehensive income, derivative financial instruments, and financial assets at fair value through profit or loss amounting to RMB 1.734 billion as of June 30, 2025, where the fair value of unlisted equity investments is estimated using market-based valuation techniques, and for other financial instruments not measured at fair value, their fair values approximate their carrying amounts, except for long-term borrowings Fair Value Measurement of Financial Instruments (As of June 30) | Item | Level 1 (RMB million) | Level 2 (RMB million) | Level 3 (RMB million) | Total (RMB million) | | :--- | :--- | :--- | :--- | :--- | | Equity investments designated at fair value through other comprehensive income | 203 | – | 1,368 | 1,571 | | Derivative financial instruments | – | 27 | – | 27 | | Financial assets at fair value through profit or loss | 136 | – | – | 136 | | Total | 339 | 27 | 1,368 | 1,734 | - The fair value of unlisted equity investments is estimated using market-based valuation techniques, considering comparable companies, price multiples, and liquidity discounts[94](index=94&type=chunk)[96](index=96&type=chunk) Long-term Borrowings Fair Value vs. Carrying Amount (As of June 30) | Item | Carrying Amount (RMB million) | Fair Value (RMB million) | | :--- | :--- | :--- | | Long-term borrowings | 55,456 | 55,680 | [Reconciliation of Cash Generated from Operations](index=41&type=section&id=3.8.%20Reconciliation%20of%20Cash%20Generated%20from%20Operations) In H1 2025, the Group's cash generated from operations was RMB 12.634 billion, derived by adjusting the pre-tax loss of RMB 1.531 billion for non-cash items like depreciation, amortization, and interest expense, and changes in working capital, resulting in net cash generated from operating activities of RMB 12.547 billion Reconciliation of Cash Generated from Operations (For the six months ended June 30) | Item | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Loss before tax | (1,531) | (2,841) | | Depreciation of property, plant and equipment | 6,072 | 5,272 | | Depreciation of right-of-use assets | 6,764 | 7,456 | | Interest expense | 2,207 | 2,710 | | Increase in operating receivables | (1,807) | (1,130) | | Increase/(decrease) in operating payables | 995 | (892) | | Cash generated from operations | 12,634 | 10,835 | | Net cash flow from operating activities | 12,547 | 10,718 | - Cash generated from operations is primarily influenced by non-cash items such as depreciation, amortization, interest expense, and changes in working capital[103](index=103&type=chunk) Operating Data Analysis [Passenger Traffic Data](index=42&type=section&id=4.1.%20Passenger%20Traffic%20Data) In H1 2025, the Group's passenger business experienced overall growth, with Available Seat Kilometers (ASK) and Revenue Passenger Kilometers (RPK) increasing by 7.48% and 12.24% year-on-year, respectively, and international routes showing significant growth, leading to an improved load factor of 84.81%, however, passenger yield per RPK decreased by 7.22% overall, with domestic routes experiencing the largest decline Passenger Traffic Data (For the six months ended June 30) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Available Seat Kilometers (ASK) (million) | 155,022.29 | 144,237.41 | 7.48% | | －Domestic routes | 101,528.31 | 100,449.48 | 1.07% | | －International routes | 50,303.48 | 40,444.61 | 24.38% | | Revenue Passenger Kilometers (RPK) (million) | 131,477.90 | 117,143.47 | 12.24% | | －Domestic routes | 87,717.88 | 82,670.69 | 6.11% | | －International routes | 41,145.20 | 31,959.54 | 28.74% | | Passengers carried (thousand) | 73,169.63 | 67,729.34 | 8.03% | | Passenger load factor (%) | 84.81 | 81.22 | 3.59pts | | －Domestic routes | 86.40 | 82.30 | 4.10pts | | －International routes | 81.79 | 79.02 | 2.77pts | | Passenger yield per RPK (RMB) | 0.488 | 0.526 | -7.22% | | －Domestic routes | 0.488 | 0.530 | -7.92% | [Cargo Traffic Data](index=43&type=section&id=4.2.%20Cargo%20Traffic%20Data) In H1 2025, the Group's cargo business saw Available Freight Ton Kilometers (AFTK) and Revenue Freight Ton Kilometers (RFTK) increase by 9.30% and 8.24% year-on-year, respectively, with significant growth in international cargo volume, though the cargo load factor slightly decreased, while cargo yield per FTK overall increased by 0.45%, with domestic routes showing faster growth Cargo Traffic Data (For the six months ended June 30) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Available Freight Ton Kilometers (AFTK) (million) | 5,223.40 | 4,778.83 | 9.30% | | －Domestic routes | 1,953.93 | 1,952.84 | 0.06% | | －International routes | 3,185.33 | 2,726.27 | 16.84% | | Revenue Freight Ton Kilometers (RFTK) (million) | 1,932.25 | 1,785.17 | 8.24% | | －Domestic routes | 466.42 | 469.56 | -0.67% | | －International routes | 1,452.17 | 1,301.93 | 11.54% | | Cargo and mail carried (million kg) | 530.65 | 510.64 | 3.92% | | Cargo and mail load factor (%) | 36.99 | 37.36 | -0.37pts | | Cargo yield per FTK (RMB) | 1.334 | 1.328 | 0.45% | | －Domestic routes | 0.682 | 0.650 | 4.92% | [Overall Traffic Data](index=44&type=section&id=4.3.%20Overall%20Traffic%20Data) In H1 2025, the Group's Available Ton Kilometers (ATK) and Revenue Ton Kilometers (RTK) increased by 7.97% and 11.89% year-on-year, respectively, with international routes leading the growth, and the overall load factor improved to 70.43%, with domestic routes performing strongly, however, the yield per RTK decreased by 6.86% overall, with domestic routes experiencing the largest decline Overall Traffic Data (For the six months ended June 30) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Available Ton Kilometers (ATK) (million) | 19,175.40 | 17,760.19 | 7.97% | | －Domestic routes | 11,091.48 | 10,993.30 | 0.89% | | －International routes | 7,712.65 | 6,366.28 | 21.15% | | Revenue Ton Kilometers (RTK) (million) | 13,505.80 | 12,071.12 | 11.89% | | －Domestic routes | 8,184.71 | 7,724.18 | 5.96% | | －International routes | 5,078.22 | 4,113.20 | 23.46% | | Overall load factor (%) | 70.43 | 67.97 | 2.46pts | | －Domestic routes | 73.79 | 70.26 | 3.53pts | | Revenue per Ton Kilometer (RMB) | 4.940 | 5.304 | -6.86% | | －Domestic routes | 5.270 | 5.713 | -7.75% | Fleet Management and Planning [Fleet Structure](index=45&type=section&id=5.1.%20Fleet%20Structure) As of June 30, 2025, the Company operated 816 aircraft, with a net increase of 12 during H1, and the fleet structure continues to optimize, with the number of domestically produced C919 aircraft increasing to 11 and an average fleet age of 9.2 years, demonstrating the Company's commitment to green development and scaled operation of domestic large aircraft - As of June 30, 2025, the Company operated a total of **816 aircraft**[109](index=109&type=chunk) - In H1 2025, the Company introduced **24 aircraft** and retired **12 aircraft**, resulting in a net increase of **12 aircraft**[108](index=108&type=chunk) - As the global launch customer for the C919 aircraft, the Company operated a total of **11 C919 aircraft** as of June 30, 2025[108](index=108&type=chunk) Fleet Structure (As of June 30, 2025) | Aircraft Type | Subtotal (aircraft) | Owned (aircraft) | Finance Lease (aircraft) | Operating Lease (aircraft) | Average Age (years) | | :--- | :--- | :--- | :--- | :--- | :--- | | Wide-body passenger aircraft | 109 | 58 | 46 | 5 | 9.0 | | Narrow-body passenger aircraft | 680 | 298 | 184 | 198 | 9.6 | | Regional passenger aircraft | 27 | 15 | 12 | 0 | 2.4 | | Total passenger aircraft | 816 | 371 | 242 | 203 | 9.2 | [Fleet Planning](index=60&type=section&id=5.2.%20Fleet%20Planning) The Group plans to continuously optimize its fleet structure from H2 2025 to 2027, focusing on introducing domestically produced C919 and C909 aircraft while gradually phasing out some A320 and B737 series aircraft, with a significant net increase in passenger aircraft expected over the next three years to support business development and green transformation Aircraft Introduction and Retirement Plan from H2 2025 to 2027 (Units: aircraft) | Aircraft Type | H2 2025 Introduction | H2 2025 Retirement | 2026 Introduction | 2026 Retirement | 2027 Introduction | 2027 Retirement | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | C919 | 9 | – | 10 | – | 10 | – | | C909 | 8 | – | – | – | – | – | | Total COMAC passenger aircraft | 17 | – | 10 | – | 10 | – | | Total Airbus passenger aircraft | 11 | 9 | 24 | 17 | 18 | 14 | | Total Boeing passenger aircraft | 6 | 3 | 2 | 7 | 13 | 12 | | Total passenger aircraft | 34 | 12 | 36 | 24 | 41 | 26 | - The Group will optimize and adjust its aircraft introduction and retirement plans as external environment and market conditions change[151](index=151&type=chunk) Operating Review and Strategic Outlook [Operating Review](index=46&type=section&id=6.1.%20Operating%20Review) In H1 2025, despite a complex external environment, the Company's total transport turnover and passenger volume increased by 11.89% and 8.03% respectively, operating revenue grew by 4.09%, and net loss attributable to shareholders significantly narrowed by 48.30%, with notable progress in safety, market development, cost control, brand service, and reform and innovation, particularly in international route expansion and domestic large aircraft operations - In H1 2025, the Company completed a total transport turnover of **13.506 billion ton-kilometers** and carried **73.16963 million passengers**, representing year-on-year increases of **11.89%** and **8.03%**, respectively[112](index=112&type=chunk) - Operating revenue reached **RMB 66.822 billion**, a year-on-year increase of **4.09%**, and the net loss attributable to shareholders was **RMB 1.431 billion**, a significant reduction of **RMB 1.337 billion** year-on-year[112](index=112&type=chunk) [Safety Operations](index=46&type=section&id=6.1.1.%20Safety%20Operations) The Company maintained overall stable safety operations in H1, with 1.3508 million safe flight hours and 0.5190 million take-offs and landings, increasing by 5.28% and 2.24% year-on-year, respectively, by continuously reinforcing safety production responsibilities, strengthening the safety operation system, and enhancing professional teams to ensure "absolute safety" - In H1 2025, the Company achieved **1.3508 million safe flight hours** and **0.5190 million take-offs and landings**, representing year-on-year increases of **5.28%** and **2.24%**, respectively[113](index=113&type=chunk) - The Company continuously improved its all-staff safety production responsibility system, refined safety responsibility lists, and strengthened its safety management, production operation, flight training, and maintenance systems[113](index=113&type=chunk) - Safety education day activities were deeply carried out, skill competitions were held, and psychological health work for pilots was strengthened to build a high-quality aircrew team[114](index=114&type=chunk) [Operating Efficiency](index=47&type=section&id=6.1.2.%20Operating%20Efficiency) The Company's operating efficiency continued to improve in H1, focusing on the Shanghai hub, increasing market share to 43.1%, and international transfer passengers by 25.3%, actively expanding its international network with 14 new international and regional routes, innovating "aviation+" marketing models to boost online sales revenue by 30% and new retail revenue by 24.77%, enhancing belly cargo revenue through passenger-cargo synergy, and meticulously controlling landing fees and jet fuel costs via the cost management committee - As of the end of June 2025, the market share in Shanghai was **43.1%**, a year-on-year increase of **1.2 percentage points**; international transfer passengers reached **4.955 million**, a year-on-year increase of **25.3%**[115](index=115&type=chunk) - **14 new international and regional routes** were opened, making it the domestic airline with the most international destinations[115](index=115&type=chunk) - In H1 2025, online sales revenue reached **RMB 6.1 billion**, a year-on-year increase of **30%**; new retail revenue exceeded **RMB 2.258 billion**, a year-on-year increase of **24.77%**[116](index=116&type=chunk) - Passenger aircraft belly cargo revenue was **RMB 2.577 billion**, a year-on-year increase of **8.69%**[117](index=117&type=chunk) - Through meticulous control, passenger bridge fees and bridge-mounted equipment costs saved approximately **RMB 11 million** compared to the same period last year[117](index=117&type=chunk) [Brand Service](index=48&type=section&id=6.1.3.%20Brand%20Service) The Company fully implemented the "Four Refinements" service concept, ranking in the "Annual Central Enterprise Brand Building Benchmarking TOP30 List" for the fifth consecutive year, successfully supported the Harbin Asian Winter Games and launched the "Asian Winter Games" themed livery aircraft, and as the global launch operator of the C919 aircraft, its fleet expanded to 11 aircraft with over 30,000 safe flight hours, further enhancing brand value through improved service quality, innovative specialized services, and social responsibility fulfillment - The Company ranked in the "Annual Central Enterprise Brand Building Benchmarking TOP30 List" for the **fifth consecutive year** and was again recognized as a TOP10 brand in "Brand Finance's Most Valuable Airline Brands in the World"[118](index=118&type=chunk) - Successfully completed transportation service support for the Harbin Asian Winter Games and launched the "Asian Winter Games" themed livery aircraft[118](index=118&type=chunk) - As the global launch operator of the C919 aircraft, its fleet expanded to **11 aircraft**, operating **14 routes**, with over **30,000 safe flight hours**[118](index=118&type=chunk) - Opened foreign language customer service hotlines in English, French, German, Russian, Japanese, and Korean, establishing a global service support system[119](index=119&type=chunk) - Launched personalized services such as "Star Wing Escort," "Online Meal Selection," "Eastern Exclusive," and "Small Animals in Cabin"[119](index=119&type=chunk) [Reform, Transformation, and Digitalization](index=49&type=section&id=6.1.4.%20Reform,%20Transformation,%20and%20Digitalization) The Company deepened reforms in key areas, outlining 43 tasks and 127 reform measures, accelerated digital transformation by establishing an "AI+" special working group, making progress in smart safety, marketing, maintenance, travel, and ground services, and continuously strengthened technological innovation by forming four company-level technology innovation laboratories to empower business development through technology - Defined **43 tasks** and **127 reform measures** for further comprehensive deepening of reforms, deepening marketing system reform, and promoting integrated marketing management in the Yangtze River Delta regional market[120](index=120&type=chunk) - Established a digital transformation working group and an "AI+" special working group to advance digital applications in smart safety, smart marketing, smart maintenance, smart travel, and smart ground services[121](index=121&type=chunk) - Formed an aviation transport service industry chain technology innovation alliance, collaborating with **15 enterprises** on scientific and technological innovation, and established **4 company-level technology innovation laboratories**[121](index=121&type=chunk) [Outlook for H2 2025](index=58&type=section&id=6.2.%202025%20H2%20Outlook) In H2 2025, the Company will continue to target its annual objectives, focusing on solidifying safety foundations, enhancing operational quality, improving corporate governance effectiveness, and accelerating reform and innovation, through measures such as strengthening system construction, opening new routes, refining cost control, upgrading service standards, promoting the C919 service brand, reinforcing compliance management, and deepening digital transformation - In H2, the Company will resolutely strengthen its safety foundation, reinforcing system construction, hazard investigation, and grassroots development[145](index=145&type=chunk) - Efforts will be made to improve operational quality, focusing on hub construction, network layout (opening Shanghai-South America routes, exploring emerging markets in the Middle East, Africa, and South America), and deepening cost reduction and efficiency enhancement[146](index=146&type=chunk) - Corporate governance effectiveness will be enhanced by strengthening Board construction, compliance management, and risk prevention and control[148](index=148&type=chunk) - Reform and innovation will be accelerated, deepening key reform projects and implementing scientific and technological innovation and digital transformation achievements[149](index=149&type=chunk) Financial Position and Risk Management [Operating Revenue and Expense Analysis](index=52&type=section&id=7.1.%20Operating%20Revenue%20and%20Expense%20Analysis) In H1 2025, the Group's main business revenue was RMB 66.822 billion, a 4.09% year-on-year increase, with passenger revenue accounting for 96% and international route passenger revenue growing by 21.78%, while cargo revenue increased by 8.69%, and total operating costs rose by 3.52% to RMB 69.729 billion, with jet fuel costs decreasing due to lower oil prices, but landing fees, salaries, and maintenance expenses all increased Operating Revenue (For the six months ended June 30) | Revenue Item | 2025 (RMB billion) | 2024 (RMB billion) | Year-on-year Growth | | :--- | :--- | :--- | :--- | | Main business revenue | 66.822 | 64.199 | 4.09% | | Transport revenue | 64.390 | 61.718 | 4.34% | | Passenger revenue | 61.813 | 59.338 | 4.17% | | －Domestic route passenger revenue | 41.286 | 42.167 | -2.09% | | －International route passenger revenue | 18.750 | 15.397 | 21.78% | | Cargo revenue | 2.577 | 2.371 | 8.69% | Operating Expenses (For the six months ended June 30) | Expense Item | 2025 (RMB billion) | 2024 (RMB billion) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Total operating costs | 69.729 | 67.359 | 3.52% | | Aircraft fuel costs | 21.411 | 23.292 | -8.08% | | Aircraft landing fees | 9.622 | 8.236 | 16.83% | | Salaries, wages and benefits | 14.020 | 12.624 | 11.06% | | Aircraft maintenance expenses | 3.276 | 3.042 | 7.69% | - Aircraft fuel costs decreased primarily due to a **12.42% decline in crude oil prices**, offsetting the cost increase from a **4.96% rise in fuel consumption**[127](index=127&type=chunk) [Other Operating Income and Net Loss](index=54&type=section&id=7.2.%20Other%20Operating%20Income%20and%20Net%20Loss) In H1 2025, the Group's other operating income increased by 5.97% year-on-year to RMB 3.391 billion, primarily driven by growth in code-share revenue, while the net loss attributable to the Company's equity holders significantly narrowed by 48.30% to RMB 1.431 billion from RMB 2.768 billion in the prior year Other Operating Income and Net Loss (For the six months ended June 30) | Metric | 2025 (RMB billion) | 2024 (RMB billion) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Other operating income | 3.391 | 3.200 | 5.97% | | Net loss attributable to equity holders of the Company | (1.431) | (2.768) | -48.30% | | Loss per share (RMB) | (0.06) | (0.12) | -50.00% | - The increase in other operating income was mainly due to growth in passenger traffic, increased capacity deployment, and higher code-share revenue[129](index=129&type=chunk) [Liquidity and Capital Structure](index=54&type=section&id=7.3.%20Liquidity%20and%20Capital%20Structure) As of June 30, 2025, the Group's total assets were RMB 284.727 billion, with a debt-to-asset ratio of 85.24%, an increase of 0.90 percentage points from year-end 2024, and current liabilities exceeding current assets, resulting in net current liabilities of RMB 95.134 billion, while total interest-bearing debt amounted to RMB 181.439 billion, with RMB-denominated debt accounting for 86.73% and USD-denominated debt for 11.69% Liquidity and Capital Structure (As of June 30) | Metric | June 30, 2025 (RMB billion) | December 31, 2024 (RMB billion) | Change | | :--- | :--- | :--- | :--- | | Total assets | 284.727 | 278.842 | 2.11% | | Debt-to-asset ratio | 85.24% | 84.34% | 0.90pts | | Total current assets | 21.214 | 19.103 | 11.05% | | Total current liabilities | 116.348 | 114.003 | 2.06% | | Net current liabilities | (95.134) | (94.900) | 0.25% | Interest-bearing Debt by Currency (As of June 30) | Currency | June 30, 2025 Amount (RMB million) | Proportion (%) | December 31, 2024 Amount (RMB million) | Proportion (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | RMB | 157,357 | 86.73 | 148,070 | 84.15 | 6.27 | | USD | 21,209 | 11.69 | 25,166 | 14.30 | -15.72 | | Other | 2,873 | 1.58 | 2,733 | 1.55 | 5.12 | | Total | 181,439 | 100.00 | 175,969 | 100.00 | 3.11 | - The Group's interest-bearing debt comprises **49.65% fixed-rate** and **50.35% floating-rate** debt[137](index=137&type=chunk) [Interest Rate and Exchange Rate Risks](index=56&type=section&id=7.4.%20Interest%20Rate%20and%20Exchange%20Rate%20Risks) The Group's interest-bearing debt is primarily denominated in USD and RMB, making it sensitive to interest rate fluctuations, with no new interest rate swap contracts entered into in H1 2025 and outstanding notional amounts of approximately USD 18 million at period-end, while foreign currency interest-bearing debt totaled RMB 24.082 billion, with USD accounting for 88.07%, exposing the Group to significant exchange rate fluctuations, and outstanding notional amounts of approximately USD 295 million in forward foreign exchange contracts at period-end for hedging purposes - The Group's interest-bearing debt consists of **49.65% fixed-rate** and **50.35% floating-rate** debt[137](index=137&type=chunk) - In H1 2025, the Group did not enter into new interest rate swap contracts, with outstanding notional amounts of approximately **USD 18 million** at period-end[137](index=137&type=chunk) - As of June 30, 2025, the Group's total foreign currency interest-bearing debt amounted to **RMB 24.082 billion**, with USD-denominated debt accounting for **88.07%**[138](index=138&type=chunk) - Outstanding notional amounts of forward foreign exchange contracts at period-end were approximately **USD 295 million**, used to hedge against USD exchange rate fluctuations[138](index=138&type=chunk) [Jet Fuel Prices and Asset Mortgages](index=57&type=section&id=7.5.%20Jet%20Fuel%20Prices%20and%20Asset%20Mortgages) Jet fuel cost is one of the Group's largest operating expenses, with price fluctuations significantly impacting profitability, and no jet fuel hedging transactions were conducted in H1 2025, while as of June 30, 2025, the original value of assets pledged for some of the Group's bank loans was RMB 34.064 billion, with no significant contingent liabilities - Jet fuel cost is one of the Group's largest operating expenses, and its price fluctuations have a significant impact on profitability[139](index=139&type=chunk) - In H1 2025, the Group did not engage in jet fuel hedging transactions, and there were no outstanding jet fuel hedging contracts at period-end[139](index=139&type=chunk) - As of June 30, 2025, the original value of assets pledged for some of the Group's bank loans was **RMB 34.064 billion**[140](index=140&type=chunk) - As of June 30, 2025, the Group had no significant contingent liabilities[141](index=141&type=chunk) Corporate Governance and Significant Matters [Corporate Governance](index=50&type=section&id=8.1.%20Corporate%20Governance) The Company continuously improved its modern enterprise system with Chinese characteristics, launched a special action plan for corporate governance, revised supporting systems for the Board and shareholders' meetings, and optimized Board composition, while in market value management, it formulated a "Market Value Management System" and proceeded with share repurchases, acquiring a total of 173.23 million A-shares and H-shares for approximately RMB 542 million as of June 30, 2025, and strengthened risk control in finance, internal control, and compliance - The Company launched a special action plan to improve its corporate governance system, breaking down **5 types of tasks** into **22 detailed measures**[122](index=122&type=chunk) - Systematically revised relevant supporting systems for the Board, shareholders' meetings, Party Committee, and General Manager's Office, improving the corporate governance system with the Articles of Association as its core[122](index=122&type=chunk) - Formulated the "Market Value Management System," and as of June 30, 2025, the Company repurchased a total of **173.2319 million A-shares and H-shares**, investing approximately **RMB 542 million**[123](index=123&type=chunk) - Continuously strengthened risk control in key areas and major businesses, preventing and resolving financial, internal control, and compliance risks[124](index=124&type=chunk) [Legal and Regulatory Matters](index=58&type=section&id=8.2.%20Legal%20and%20Regulatory%20Matters) As of June 30, 2025, the Board found no significant legal and regulatory matters impacting the Group and was unaware of any violations of relevant laws and regulations - As of June 30, 2025, the Board found no significant matters impacting the Group and was unaware of any violations of laws and regulations that would have a material impact on the Group[143](index=143&type=chunk) [Share Structure and Dividends](index=61&type=section&id=8.3.%20Share%20Structure%20and%20Dividends) As of June 30, 2025, the Company's total share capital was 22.291 billion shares, with A-shares accounting for 76.78% and H-shares for 23.22%, all being unrestricted tradable shares, and the Board did not recommend an interim dividend for the half-year ended June 30, 2025 Share Structure (As of June 30, 2025) | Share Type | Total Shares | Approximate Equity Proportion (%) | | :--- | :--- | :--- | | A-shares | 17,114,518,793 | 76.78 | | H-shares | 5,176,777,777 | 23.22 | | Total Shares | 22,291,296,570 | 100.00 | - All A-shares and H-shares are unrestricted tradable shares[152](index=152&type=chunk) - The Board did not recommend an interim dividend for the half-year ended June 30, 2025[153](index=153&type=chunk) [Securities Transactions and Litigation](index=61&type=section&id=8.4.%20Securities%20Transactions%20and%20Litigation) As of June 30, 2025, the Company repurchased 89.5539 million A-shares (approximately RMB 337 million) and 83.6780 million H-shares (approximately HKD 222 million) for cancellation, as authorized by the general meeting of shareholders, with no other purchases, sales, or redemptions of listed securities by the Group during this period, and no significant litigation, arbitration, or claims - As of June 30, 2025, the Company repurchased **89.5539 million A-shares** on the Shanghai Stock Exchange, with a total repurchase price of approximately **RMB 337 million**[154](index=154&type=chunk) - **83.6780 million H-shares** were repurchased on the Hong Kong Stock Exchange, with a total repurchase price of approximately **HKD 222 million**[154](index=154&type=chunk) - All repurchased shares will be cancelled in accordance with the law[154](index=154&type=chunk) - For the six months ended June 30, 2025, the Group had no significant litigation, arbitration, or claims[155](index=155&type=chunk) [Audit and Risk Management Committee](index=62&type=section&id=8.5.%20Audit%20and%20Risk%20Management%20Committee) The Audit and Risk Management Committee reviewed the Group's adopted accounting principles and methods, discussed internal control and financial reporting matters with the Board, including the consolidated results for the six months ended June 30, 2025, and expressed no disagreement with the accounting principles and methods adopted by the Group - The Audit and Risk Management Committee reviewed the accounting principles and methods adopted by the Group and discussed internal control and financial reporting matters[157](index=157&type=chunk) - The Committee had no disagreement with the accounting principles and methods adopted by the Group[158](index=158&type=chunk) [Personnel Changes](index=57&type=section&id=8.6.%20Personnel%20Changes) As of June 30, 2025, the Group employed 85,196 employees, with several changes in Board and Supervisory Committee members during the reporting period, including Liu Tiexiang's departure as Vice Chairman and General Manager, Cheng Guowei's election as a Director and appointment as Chairman of the Board's Planning, Development and Digitalization Committee, and the departure of Supervisory Committee Chairman Guo Junxiu and some supervisors due to the abolition of the Supervisory Committee, additionally, He Xiaoqun and Li Zhiyong were appointed as Deputy General Managers - As of June 30, 2025, the Group employed **85,196 employees**[142](index=142&type=chunk) Key Personnel Changes (H1 2025) | Name | Position Held | Change | Reason for Change | Date of Change | | :--- | :--- | :--- | :--- | :--- | | Liu Tiexiang | Vice Chairman, Director, General Manager | Departure | Work adjustment | August 26, 2025 | | Cheng Guowei | Director | Election | Shareholder meeting election | February 12, 2025 | | Guo Junxiu | Chairman of Supervisory Committee | Departure | Abolition of Supervisory Committee | August 29, 2025 | | He Xiaoqun | Deputy General Manager | Appointment | Board appointment | January 17, 2025 | | Li Zhiyong | Deputy General Manager | Appointment | Board appointment | June 23, 2025 | [Other Significant Matters](index=66&type=section&id=8.7.%20Other%20Significant%20Matters) On June 24, 2025, the Company signed an agreement to transfer its 20% equity interest in New Shanghai International Tower to Eastern Airlines Assets for approximately RMB 286 million, and as of July 31, 2025, the Company had cumulatively repurchased 204 million shares, representing 0.9132% of total shares, with A-share repurchases totaling approximately RMB 337 million and H-share repurchases approximately HKD 311 million, while actual amounts of continuing connected transactions remained within annual limits - The Company plans to transfer its **20% equity interest** in New Shanghai International Tower to Eastern Airlines Assets for approximately **RMB 286 million**[163](index=163&type=chunk) - As of July 31, 2025, the Company had cumulatively repurchased **204 million shares**, representing **0.9132%** of total shares, with A-share repurchases amounting to approximately **RMB 337 million** and H-share repurchases approximately **HKD 311 million**[163](index=163&type=chunk) H1 2025 Continuing Connected Transactions vs. Annual Caps (RMB million) | Transaction Item | H1 2025 Actual Amount | 2025 Continuing Connected Transaction Annual Cap | | :--- | :--- | :--- | | Maximum daily deposit balance | 7,537 | 17,000 | | Total aircraft and engine lease payments | 6,429 | USD 4.6 billion or equivalent RMB | | Exclusive operating transport service fees for passenger aircraft cargo business - amount received | 2,577 | 8,800 | | Aviation information technology services - amount paid | 695 | 1,050 |

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 對 因 本 公 告 全 部 或 任 何 部 份 內 容 而 產 生 或 因 倚 賴 該 等 內 容 而 引 致 之 任 何 損 失 承 擔 任 何 責 任。 Landsea Green Life Service Company Limited 朗詩綠色生活服務有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1965） 截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月 之 中 期 業 績 公 告 業 績 摘 要 截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月（「本 期 間」），本 集 團 業 績 如 下： – 1 – | | | | | | | | | | | | | | | | 至 | | | | 止 | | 個 | | | | 截 | 六 | 月 | 三 | 十 | 日 | | | | 月 | 六 | | | | | | | | | -- ...

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的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任 何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 （ 於 開 曼 群 島 註 冊 成 立 的 有 限 公 司） （ 前 稱Wisdom Sports Group 智 美 體 育 集 團 ） （股份代號：1661） 截至2025年6月30日止6個月中期業績公告 財務摘要 中國前沿科技集團（「本公司」或「中國前沿科技」）董事（「董事」）會（「董事會」） 謹此發佈本公司及其附屬公司（統稱「本集團」）截至2025年6月30日止6個月期間的 未經審核合併中期業績連同2024年同期的比較數字。 1 簡明合併損益及其他綜合收益表 截至2025年6月30日止6個月 | | | 截至6月30日止6個月 | | | --- | --- | --- | --- | | | | 2025年 | 2024年 | | | 附註 | 人民幣千元 | 人民幣千元 | | | | （未經審核） | （未經審核） | | 收入 | 4 | 18,244 | 22,356 | | 服務成本 ...

香港交易及結算所有限公司以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 會 就 因 本 公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。 TA YANG GROUP HOLDINGS LIMITED 大 洋 集 團 控 股 有 限 公 司（「本公司」）董 事（「董 事」）會（「董事會」）公 佈 本 公 司 及 其 附 屬 公 司（統 稱「本集團」）截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月 的 未 經 審 核 簡 明 綜 合 中 期 業 績 及 財 務 狀 況，連 同 上 一 年 同 期 的 比 較 數 字 如 下。 簡明綜合損益表 | 截至六月三十日止六個月 | 二零二五年 | 二零二四年 | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 附 | 註 | 千港元 | 千港元 | （未 | 經 | 審 | 核） | ...

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的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 告 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。 Hilong Holding Limited 海隆控股有限公司* （於 開 曼 群 島 註 冊 成 立 之 有 限 公 司） （股 份 代 號：1623） 截至二零二五年六月三十日止六個月的 中期業績公告 及 提名委員會組成變更 財務摘要 提名委員會組成變更 自 二 零 二 五 年 八 月 二 十 九 日 起，非 執 行 董 事 張 姝 嫚 女 士 及 獨 立 非 執 行 董 事 黃 文 宗 先 生 已 獲 委 任 為 提 名 委 員 會 成 員。 * 僅供識別 – 1 – • 截至二零二五年六月三十日止六個月的收入約為人民幣2,322.5百 萬 元， 較二零二四年同期減少約5.8%。 • 截至二零二五年六月三十日止六個月的毛利約為人民幣401.4百 萬 元， 較二零二四年同期減少約30.6%。 • 董事會決議不會就截至二零二五年六月三十日止六個月 ...