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 ...

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。 截至2025年6月30日止六個月之中期業績公告 及 派發截至2025年6月30日止六個月之中期股息 GF SECURITIES CO., LTD. 刊發中期業績 （於中華人民共和國註冊成立的股份有限公司） （股份代號：1776) 廣發証券股份有限公司（「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中期業績。本公告列載本公司2025 年中期報告全文，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 （「香港上市規則」)中有關中期業績初步公告附載的資料之要求。 本公司2025年中期報告將於2025年9月底之前分別刊載於香港交易及結算所有限 公司網站 www.hkexnews.hk 及本公司網站 www.gf.com.cn 。 廣發証券股份有限公司 2025年度中期股息 非居民企業股東在獲得股利之後，可以自行或通過委託代理人或代扣代 繳義務人， ...

[Corporate Information](index=3&type=section&id=Corporate%20Information) This section provides an overview of the company's governance structure, including board members, committees, and other essential corporate details [Board of Directors](index=3&type=section&id=Board%20of%20Directors) This section lists the Board of Directors of Emperor Industries Holdings Limited, including executive and independent non-executive directors, and discloses recent changes in directorship - Mr. Zhong Wenlong was appointed as an executive director on August 1, 2025[6](index=6&type=chunk)[7](index=7&type=chunk) - Mr. Zhang Jiawei resigned as an executive director on July 31, 2025[6](index=6&type=chunk)[7](index=7&type=chunk) [Committees](index=3&type=section&id=Committees) This section details the composition of the Audit, Nomination, and Remuneration Committees, all chaired by independent non-executive directors - The chairmen of the Audit, Nomination, and Remuneration Committees are all Mr. Li Changyue[6](index=6&type=chunk)[7](index=7&type=chunk) - The Audit Committee comprises four independent non-executive directors[6](index=6&type=chunk)[7](index=7&type=chunk) [Other Corporate Details](index=4&type=section&id=Other%20Corporate%20Details) This section provides basic information such as the company's authorized representatives, independent auditor, principal bankers, website, stock code, registered office, and share registrar - The company's stock code is **1950**[9](index=9&type=chunk)[10](index=10&type=chunk) - The company's website is **www.dwhl1950.com**[9](index=9&type=chunk)[10](index=10&type=chunk) - The independent auditor is Zhongrui Hexin Certified Public Accountants Limited[9](index=9&type=chunk)[10](index=10&type=chunk) [Management Discussion and Analysis](index=6&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews the company's financial performance, operational highlights, future outlook, liquidity, capital structure, and human resources for the reporting period [Business Review](index=6&type=section&id=Business%20Review) For the six months ended June 30, 2025, Emperor Industries Holdings Limited experienced a decrease in both revenue and net profit, primarily operating in faux leather chemicals and Chinese liquor businesses [Faux Leather Chemicals Business](index=6&type=section&id=Faux%20Leather%20Chemicals%20Business) Revenue from faux leather chemicals decreased by 6.6% to RMB 113,104,000, while gross profit margin improved due to lower raw material costs Faux Leather Chemicals Business Performance | Indicator | For the six months ended June 30, 2025 (RMB thousands) | For the six months ended June 30, 2024 (RMB thousands) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 113,104 | 121,034 | -6.6% | | Gross Profit | 26,137 | 23,551 | +11.0% | | Gross Profit Margin | 23.1% | 19.5% | +3.6 percentage points | | Selling and Distribution Expenses | 7,942 | 6,596 | +20.4% | | Segment Profit | 4,951 | 4,199 | +17.9% | - The increase in gross profit margin was primarily due to the overall decrease in raw material costs during the period[23](index=23&type=chunk)[28](index=28&type=chunk) [Chinese Liquor Business](index=7&type=section&id=Chinese%20Liquor%20Business) Chinese liquor business revenue decreased by 12.3% to RMB 149,785,000, with a significant decline in segment profit due to increased selling and distribution expenses Chinese Liquor Business Performance | Indicator | For the six months ended June 30, 2025 (RMB thousands) | For the six months ended June 30, 2024 (RMB thousands) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Segment Revenue | 149,785 | 170,795 | -12.3% | | Gross Profit | 99,940 | 116,111 | -14.0% | | Selling and Distribution Expenses as % of Segment Revenue | 56.5% | 54.0% | +2.5 percentage points | | Segment Profit | 11,350 | 19,817 | -42.7% | - The company promotes its Chinese liquor products through advertising on platforms like airports, railway stations, and online media, as well as by organizing tasting events and liquor exhibitions[27](index=27&type=chunk)[29](index=29&type=chunk) Group's Key Financial Indicators for H1 2025 | Indicator | For the six months ended June 30, 2025 (RMB thousands) | For the six months ended June 30, 2024 (RMB thousands) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 262,889 | 291,829 | -9.9% | | Gross Profit | 126,076 | 139,662 | -9.7% | | Net Profit | 15,334 | 20,530 | -25.3% | | Basic and Diluted Earnings Per Share | 1.93 cents | 2.85 cents | -32.3% | - Net profit decreased primarily due to increased selling and distribution expenses[16](index=16&type=chunk) - The Group primarily engages in the faux leather chemicals business and the Chinese liquor business[17](index=17&type=chunk)[21](index=21&type=chunk) [Prospects](index=8&type=section&id=Prospect) Despite global economic uncertainties, China's economy is expected to recover in 2025, prompting the Group to adjust its strategic goals to enhance market share through management, R&D, product diversification, and geographical expansion - China's economy is expected to recover in 2025, with government-directed stimulus measures and growing consumer spending supporting retail sales growth[32](index=32&type=chunk)[35](index=35&type=chunk) - The Group is adjusting its strategic objectives to increase market share through management initiatives, enhanced R&D capabilities, diversified product lines, and geographical expansion[33](index=33&type=chunk)[35](index=35&type=chunk) - The Chinese liquor business has repositioned its products under proprietary brands "Di Huang Chi" and "Di Long Chi" and established production partnerships with Huaxing Liquor and Datang Liquor[34](index=34&type=chunk)[36](index=36&type=chunk) - A strategic cooperation framework agreement was signed with Shanghai Jiuyue Youpin Commercial Management Co., Ltd. in August 2025 to jointly expand liquor and other food sales, aiming to establish a joint venture[37](index=37&type=chunk)[42](index=42&type=chunk) [Interim Dividend](index=9&type=section&id=Interim%20Dividend) The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of any interim dividend for the current period[39](index=39&type=chunk)[43](index=43&type=chunk) [Liquidity and Capital Resources](index=9&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's current assets were approximately RMB 652,560,000 and current liabilities were approximately RMB 213,407,000, resulting in a decrease in the current ratio from 3.58 times to 3.06 times, with a significant increase in the gearing ratio [Gearing Ratio](index=10&type=section&id=Gearing%20Ratio) As of June 30, 2025, the Group's gearing ratio significantly increased to 5.14% from 1.01% as of December 31, 2024 Gearing Ratio | Date | Gearing Ratio | | :--- | :--- | | June 30, 2025 | 5.14% | | December 31, 2024 | 1.01% | [Capital Expenditures](index=10&type=section&id=Capital%20expenses) During the reporting period, the Group's capital expenditures amounted to approximately RMB 12,049,000, primarily for the purchase of plant and equipment, a significant decrease from the prior year Capital Expenditures | Period | Amount (RMB thousands) | | :--- | :--- | | For the six months ended June 30, 2025 | 12,049 | | For the six months ended June 30, 2024 | 39,842 | [Capital Commitments](index=10&type=section&id=Capital%20Commitments) As of June 30, 2025, capital commitments not provided for in the condensed consolidated financial statements amounted to RMB 813,000, mainly for the purchase of plant and machinery and automation contracts, a decrease from year-end Capital Commitments | Date | Amount (RMB thousands) | | :--- | :--- | | June 30, 2025 | 813 | | December 31, 2024 | 1,451 | Liquidity Status | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Current Assets | 652,560 | 557,411 | | Current Liabilities | 213,407 | 155,653 | | Current Ratio | 3.06 times | 3.58 times | - As of June 30, 2025, bank borrowings amounted to approximately **RMB 66,500,000**, all bearing interest at floating rates[41](index=41&type=chunk)[44](index=44&type=chunk) [Capital Structure](index=10&type=section&id=Capital%20Structure) As of June 30, 2025, the company's issued ordinary shares totaled 720,000,000, with an authorized share capital of US$5,000,000, divided into 2,000,000,000 shares of US$0.0025 each, consistent with the prior year-end [Share Scheme](index=10&type=section&id=Share%20Scheme) The company adopted a share option scheme on February 10, 2020, with a maximum of 20,000,000 share options available for grant after share consolidation, with no options granted or authorization limit updated since adoption - The total number of share options available for grant under the share option scheme does not exceed **20,000,000** shares[56](index=56&type=chunk)[61](index=61&type=chunk) - Since the adoption date of the share option scheme, the authorized limit has not been updated, and no share options have been granted[57](index=57&type=chunk)[61](index=61&type=chunk) - As of June 30, 2025, the number of issued ordinary shares was **720,000,000**[49](index=49&type=chunk)[55](index=55&type=chunk) - The authorized share capital is **US$5,000,000**, divided into **2,000,000,000** shares of **US$0.0025** each[49](index=49&type=chunk)[55](index=55&type=chunk) [Investments](index=11&type=section&id=Investments) As of June 30, 2025, the Group's total carrying value of investments in shares of companies listed on the Stock Exchange decreased to approximately RMB 4,339,000, with realized fair value losses and unrealized fair value gains recorded during the period Total Investment in Listed Securities | Date | Amount (RMB thousands) | | :--- | :--- | | June 30, 2025 | 4,339 | | December 31, 2024 | 5,972 | Investment Performance (For the six months ended June 30, 2025) | Indicator | Amount (RMB thousands) | | :--- | :--- | | Realized fair value loss | (305) | | Unrealized fair value gain | 174 | | Dividends received | 255 | - The Board expects the stock market to remain volatile in the coming year, and the Group will continue to adopt prudent measures when making investment decisions in securities trading[66](index=66&type=chunk)[68](index=68&type=chunk) [Contingent Liabilities](index=13&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant hire purchase commitments, contingent liabilities, guarantees, or lawsuits against it - As of June 30, 2025, the Group recorded no significant hire purchase commitments, contingent liabilities, guarantees, or lawsuits against it[70](index=70&type=chunk)[75](index=75&type=chunk) [Foreign Exchange Risk and Management](index=13&type=section&id=Foreign%20Currency%20Risk%20and%20Management) The Group's sales and purchases are primarily denominated in RMB, with some foreign currency funds in HKD; the company is exploring measures to manage foreign exchange risk but has not entered into any hedging instruments as of June 30, 2025 - The Group's sales and purchases are primarily denominated in RMB, with some foreign currency funds denominated in HKD[71](index=71&type=chunk)[76](index=76&type=chunk) - The company is exploring and discussing measures to address foreign exchange risk, but as of June 30, 2025, no financial instruments have been entered into for foreign exchange hedging[71](index=71&type=chunk)[76](index=76&type=chunk) [Human Resources](index=13&type=section&id=Human%20Resources) As of June 30, 2025, the Group had approximately 202 employees, offering competitive remuneration and benefits, and participating in social security schemes in China and MPF in Hong Kong - As of June 30, 2025, the Group had approximately **202** employees[72](index=72&type=chunk)[77](index=77&type=chunk) - The Group participates in various local government-managed social security schemes for its employees in China and is a member of the Mandatory Provident Fund Scheme for its employees in Hong Kong[73](index=73&type=chunk)[77](index=77&type=chunk) [Sufficiency of Public Float](index=13&type=section&id=Sufficiency%20of%20Public%20Float) The company has maintained the public float as required by the Listing Rules at all times during the reporting period - During the reporting period, the company consistently maintained the public float required by the Listing Rules[74](index=74&type=chunk)[78](index=78&type=chunk) [Corporate Governance and Other Data](index=14&type=section&id=Corporate%20Governance%20and%20Other%20Data) This section details the company's adherence to corporate governance principles, directors' and substantial shareholders' interests, and other relevant post-reporting period events [Corporate Governance](index=14&type=section&id=Corporate%20Governance) The company has adopted the Corporate Governance Code but has deviations due to the absence of a chairman since May 25, 2022, affecting the segregation of duties and reporting lines - The company has strictly complied with the Corporate Governance Code from the listing date to the report date, with the following deviations: non-segregation of duties for Chairman and CEO, company secretary reporting to executive directors, and AGM chaired by an executive director[80](index=80&type=chunk)[81](index=81&type=chunk)[82](index=82&type=chunk)[86](index=86&type=chunk) - The company has been without a chairman since the resignation of the former chairman, Ms. Liu Jing, on May 25, 2022[81](index=81&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=15&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the period[83](index=83&type=chunk)[87](index=87&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors](index=15&type=section&id=Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) Following specific inquiries to all directors, the company confirms that all directors have complied with the Model Code for Securities Transactions by Directors during the reporting period - All directors have complied with the required standards set out in the Model Code during the period[84](index=84&type=chunk)[88](index=88&type=chunk) [Events After the Reporting Period](index=15&type=section&id=Events%20After%20the%20Reporting%20Period) Except as disclosed in this report, there have been no significant events after the review period and up to the date of this report that could materially affect the Group's operations and financial performance - Except as disclosed in this report, there have been no significant events after the review period and up to the date of this report that could materially affect the Group's operations and financial performance[85](index=85&type=chunk)[89](index=89&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures](index=16&type=section&id=Directors%27%20and%20Chief%20Executive%27s%20Interests%20and%20Short%20Positions%20in%20the%20Shares%2C%20Underlying%20Shares%20and%20Debentures) As of June 30, 2025, Executive Director Mr. Chen Hua held a 0.83% long position in shares through controlled corporations and spouse's interests, while Independent Non-Executive Director Mr. Huang Zhenming held a 0.56% long position Directors' Shareholdings | Name | Capacity/Nature of Interest | Number of Shares | Long/Short Position | Approximate Percentage of the Company's Shareholding | | :--- | :--- | :--- | :--- | :--- | | Mr. Chen Hua | Interest in controlled corporation and spouse's interest | 6,000,800 | Long Position | 0.83% | | Mr. Huang Zhenming | Beneficial owner | 4,000,000 | Long Position | 0.56% | - Mr. Chen Hua indirectly holds share interests through Sunlight Global Investment Limited and Lilian Global Investment Limited, wholly owned by his spouse, Ms. Liu Jing[93](index=93&type=chunk)[94](index=94&type=chunk)[95](index=95&type=chunk)[97](index=97&type=chunk) [Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares](index=17&type=section&id=Substantial%20Shareholders%27%20Interests%20and%20Short%20Positions%20in%20the%20Shares%20and%20Underlying%20Shares) As of June 30, 2025, apart from the directors and chief executive, Ms. Zheng Xiuyue was a substantial shareholder, holding a long position of 52,000,000 shares, representing 7.22% of the company's shareholding Substantial Shareholders' Shareholdings | Name | Capacity/Nature of Interest | Number of Shares | Long/Short Position | Approximate Percentage of the Company's Shareholding | | :--- | :--- | :--- | :--- | :--- | | Ms. Zheng Xiuyue | Beneficial owner | 52,000,000 | Long Position | 7.22% | [Directors' Interests in Competing Business](index=18&type=section&id=Directors%27%20Interest%20in%20Competing%20Business) At no time during the reporting period did any director or their close associates have an interest in any business that directly or indirectly competes or might have competed with the Group's business - No director or their close associates had any interest in any business that competes with the Group's business during the period[104](index=104&type=chunk)[108](index=108&type=chunk) [Interests of Directors (and their Connected Entities) in Material Transactions, Arrangements or Contracts](index=18&type=section&id=Interests%20of%20Directors%20%28and%20their%20Connected%20Entities%29%20in%20Material%20Transactions%2C%20Arrangements%20or%20Contracts) At year-end or at any time during the reporting period, no director or entity connected with a director had a material interest in any significant transaction, arrangement, or contract entered into by the company, its holding company, or any of its subsidiaries - No director or their connected entities had a material interest in any significant transaction, arrangement, or contract entered into by the company, its holding company, or any subsidiary during the period[101](index=101&type=chunk)[105](index=105&type=chunk)[109](index=109&type=chunk) [Audit Committee](index=18&type=section&id=Audit%20Committee) As of June 30, 2025, the Audit Committee members are all independent non-executive directors, having reviewed the interim financial report and key accounting policies, though the condensed consolidated interim financial report for this period is unaudited - The Audit Committee members include Mr. Li Changyue (Chairman), Mr. Ou Xijing, Mr. Huang Zhenming, and Ms. Zhou Xiaochun, all of whom are independent non-executive directors[102](index=102&type=chunk)[106](index=106&type=chunk) - The Audit Committee has reviewed the interim financial report and discussed internal controls, financial reporting matters, and the key accounting standards and policies adopted by the company[102](index=102&type=chunk)[107](index=107&type=chunk) - The condensed consolidated interim financial report for this period is unaudited[103](index=103&type=chunk)[107](index=107&type=chunk) [Update on Directors' Information](index=19&type=section&id=Update%20on%20Directors%27%20Information) Subsequent to the reporting period, Mr. Zhang Jiawei resigned as an executive director, and Mr. Zhong Wenlong was appointed as an executive director, effective August 1, 2025 - Mr. Zhang Jiawei has resigned as an executive director[110](index=110&type=chunk)[111](index=111&type=chunk) - Mr. Zhong Wenlong has been appointed as an executive director, effective August 1, 2025[110](index=110&type=chunk)[111](index=111&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=20&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20of%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group reported revenue of RMB 262,889,000, gross profit of RMB 126,076,000, and profit for the period of RMB 15,334,000, all showing a decrease compared to the prior year Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | For the six months ended June 30, 2025 (RMB thousands) | For the six months ended June 30, 2024 (RMB thousands) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 262,889 | 291,829 | -9.9% | | Cost of Sales | (136,813) | (152,167) | -10.09% | | Gross Profit | 126,076 | 139,662 | -9.73% | | Other Income | 1,764 | 2,042 | -13.61% | | Other Gains and Losses | 571 | 654 | -12.7% | | Net Loss on Financial Assets at FVTPL | (131) | (3,190) | -95.89% | | Selling and Distribution Expenses | (92,591) | (98,762) | -6.35% | | Administrative and General Expenses | (17,184) | (16,630) | +3.33% | | Share of Results of an Associate | (55) | (38) | +44.74% | | Finance Costs | (960) | (519) | +84.97% | | Profit Before Tax | 17,490 | 23,219 | -24.76% | | Income Tax Expense | (2,156) | (2,689) | -19.75% | | Profit for the Period | 15,334 | 20,530 | -25.31% | | Profit Attributable to Owners of the Company | 13,908 | 20,537 | -32.3% | | Non-controlling Interests | 1,426 | (7) | Significant increase | - Net other comprehensive income for the period was **RMB 434,000**, compared to a loss of **RMB 203,000** in the prior period, primarily from exchange differences on translating overseas operations[113](index=113&type=chunk) [Condensed Consolidated Statement of Financial Position](index=21&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets were RMB 923,477,000, total liabilities were RMB 218,125,000, and total equity was RMB 705,352,000, showing increases in total assets, total liabilities, and net assets compared to December 31, 2024 Key Data from Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | **Non-current Assets:** | | | | | Property, Plant and Equipment | 200,277 | 194,448 | Increase | | Right-of-use Assets | 59,037 | 59,583 | Decrease | | Investment in an Associate | 6,571 | 5,426 | Increase | | Prepayments | 2,332 | 8,116 | Decrease | | Deferred Tax Assets | 2,700 | 2,700 | No Change | | **Subtotal** | **270,917** | **270,273** | **Increase** | | **Current Assets:** | | | | | Inventories | 61,771 | 44,677 | Increase | | Trade and Bills Receivables | 274,505 | 241,274 | Increase | | Prepayments, Deposits and Other Receivables | 234,126 | 207,287 | Increase | | Financial Assets at FVTPL | 4,339 | 5,972 | Decrease | | Pledged Bank Deposits | – | 3,475 | Decrease | | Bank Balances and Cash | 77,819 | 54,726 | Increase | | **Subtotal** | **652,560** | **557,411** | **Increase** | | **Total Assets** | **923,477** | **827,684** | **Increase** | | **Current Liabilities:** | | | | | Trade and Bills Payables | 82,584 | 70,282 | Increase | | Other Payables and Accruals | 15,141 | 18,618 | Decrease | | Deferred Revenue | 487 | 487 | No Change | | Amounts Due to Related Companies | 47,555 | 463 | Significant increase | | Tax Payable | 1,140 | 1,303 | Decrease | | Bank Borrowings | 66,500 | 64,500 | Increase | | **Subtotal** | **213,407** | **155,653** | **Increase** | | **Non-current Liabilities:** | | | | | Deferred Revenue | 4,718 | 3,287 | Increase | | **Total Liabilities** | **218,125** | **158,940** | **Increase** | | **Total Equity** | **705,352** | **668,744** | **Increase** | - The current ratio decreased from approximately **3.58 times** as of December 31, 2024, to approximately **3.06 times** as of June 30, 2025[40](index=40&type=chunk)[44](index=44&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=23&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, total equity attributable to owners of the company increased from approximately RMB 644,094,000 as of January 1, 2025, to approximately RMB 654,965,000, with total comprehensive income for the period being RMB 15,768,000 Key Data from Condensed Consolidated Statement of Changes in Equity | Indicator | June 30, 2025 (RMB thousands) | January 1, 2025 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Share Capital | 12,705 | 12,705 | No Change | | Share Premium | 458,695 | 458,695 | No Change | | Capital Reserve | 59,188 | 62,659 | Decrease | | Statutory Reserve | 22,407 | 21,837 | Increase | | Exchange Reserve | (1,924) | (2,358) | Increase | | Retained Earnings | 103,894 | 90,556 | Increase | | **Total Equity Attributable to Owners of the Company** | **654,965** | **644,094** | **Increase** | | Non-controlling Interests | 50,387 | 24,650 | Increase | | **Total Equity** | **705,352** | **668,744** | **Increase** | - During the period, the company sold a 25% equity interest in a subsidiary to a third party for a cash consideration of **RMB 20,840,000**, resulting in a decrease in capital reserve of **RMB 3,471,000** and an increase in non-controlling interests of **RMB 24,311,000**[117](index=117&type=chunk)[118](index=118&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=24&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, the Group reported a net cash outflow from operating activities of RMB 23,227,000, a net cash outflow from investing activities of RMB 2,285,000, and a net cash inflow from financing activities of RMB 48,132,000, with cash and cash equivalents at period-end of RMB 77,819,000 Key Data from Condensed Consolidated Statement of Cash Flows | Indicator | For the six months ended June 30, 2025 (RMB thousands) | For the six months ended June 30, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Net Cash (Used in)/Generated from Operating Activities | (23,227) | 8,390 | Shift from inflow to outflow | | Net Cash Used in Investing Activities | (2,285) | (40,777) | Decrease in outflow | | Net Cash Generated from Financing Activities | 48,132 | 27,484 | Increase in inflow | | Net Increase/(Decrease) in Cash and Cash Equivalents | 22,620 | (4,903) | Shift from decrease to increase | | Cash and Cash Equivalents at End of Period | 77,819 | 43,766 | Increase | - In investing activities, expenditures for the purchase of property, plant, and equipment amounted to **RMB 6,265,000**, a significant decrease compared to the prior period[121](index=121&type=chunk) - In financing activities, proceeds from bank borrowings were **RMB 32,000,000**, repayment of bank borrowings was **RMB 30,000,000**, and repayment from related companies was **RMB 47,092,000**[121](index=121&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=25&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) These notes provide additional information and explanations to the condensed consolidated financial statements, clarifying accounting policies and specific items [General Information](index=25&type=section&id=General%20Information) Emperor Industries Holdings Limited, incorporated in the Cayman Islands, is an investment holding company whose subsidiaries primarily manufacture and sell faux leather chemicals and Chinese liquor, with its shares listed on the HKEX since March 12, 2020, and financial statements presented in RMB - The company is an investment holding company, and its subsidiaries are primarily engaged in the manufacturing and sale of faux leather chemicals and Chinese liquor[123](index=123&type=chunk)[127](index=127&type=chunk) - The company's shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on March 12, 2020[123](index=123&type=chunk)[127](index=127&type=chunk) - The consolidated financial statements are presented in RMB, which is the company's presentation currency[124](index=124&type=chunk)[127](index=127&type=chunk) [Basis of Preparation and Principal Accounting Policies](index=25&type=section&id=Basis%20of%20Preparation%20and%20Principal%20Accounting%20Policies) The condensed consolidated financial statements are prepared in accordance with IAS 34 and Appendix D2 of the Listing Rules, measured at historical cost except for financial assets at fair value through profit or loss, with consistent accounting policies applied as in the 2024 annual financial statements - The condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and the applicable disclosure requirements of Appendix D2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[125](index=125&type=chunk)[128](index=128&type=chunk) - The condensed consolidated financial statements have been prepared on a historical cost basis, except for financial assets at fair value through profit or loss, which are measured at revalued amounts or fair value where applicable[126](index=126&type=chunk)[128](index=128&type=chunk) - Except for additional accounting policy changes arising from the application of amended IFRSs, the accounting policies for the current period are consistent with those presented in the 2024 annual financial statements[130](index=130&type=chunk)[133](index=133&type=chunk) [Application of Amendments to International Financial Reporting Standards ("IFRSs")](index=26&type=section&id=Application%20of%20Amendments%20to%20International%20Financial%20Reporting%20Standards%20%28%22IFRSs%22%29) During this interim period, the Group first applied amended IFRSs, including IFRS 10 and IAS 28 (Amendments), issued by the IASB, which had no significant impact on the Group's financial performance or position - The Group has first applied IFRS 10 and IAS 28 (Amendments)[131](index=131&type=chunk)[132](index=132&type=chunk) - The application of the amended IFRSs had no significant impact on the Group's condensed consolidated financial performance and position for the current and prior periods[131](index=131&type=chunk)[132](index=132&type=chunk) [Segment Information](index=27&type=section&id=Segment%20Information) The Group's operating segments are primarily faux leather chemicals and Chinese liquor products, with most revenue generated from China, and segment performance detailed for both businesses Segment Revenue and Profit (For the six months ended June 30, 2025) | Segment | Revenue (RMB thousands) | Profit (RMB thousands) | | :--- | :--- | :--- | | Faux Leather Chemicals | 113,104 | 4,951 | | Chinese Liquor Products | 149,785 | 11,350 | | **Total** | **262,889** | **16,301** | Segment Revenue and Profit (For the six months ended June 30, 2024) | Segment | Revenue (RMB thousands) | Profit (RMB thousands) | | :--- | :--- | :--- | | Faux Leather Chemicals | 121,034 | 4,199 | | Chinese Liquor Products | 170,795 | 19,817 | | **Total** | **291,829** | **24,016** | Revenue by Geographical Location | Region | For the six months ended June 30, 2025 (RMB thousands) | For the six months ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | China | 261,150 | 289,844 | | Overseas | 1,739 | 1,985 | | **Total** | **262,889** | **291,829** | [Revenue](index=31&type=section&id=Revenue) Revenue represents amounts received and receivable from the sale of faux leather chemicals and Chinese liquor during the period, net of discounts, sales returns, and sales-related taxes Revenue Composition | Revenue Source | For the six months ended June 30, 2025 (RMB thousands) | For the six months ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Sale of faux leather chemicals | 113,104 | 121,034 | | Sale of Chinese liquor products | 149,785 | 170,795 | | **Total** | **262,889** | **291,829** | - Revenue is recognized at a point in time[147](index=147&type=chunk) [Other Income](index=32&type=section&id=Other%20Income) For the six months ended June 30, 2025, the Group's total other income amounted to RMB 1,764,000, primarily comprising government grants, dividend income, and revenue from raw material sales, with government grants decreasing from the prior period Other Income Composition | Income Item | For the six months ended June 30, 2025 (RMB thousands) | For the six months ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Bank interest income | 26 | 76 | | Dividend income | 255 | – | | Government grants | 1,210 | 1,782 | | Miscellaneous income | 40 | 18 | | Sale of raw materials | 233 | 166 | | **Total** | **1,764** | **2,042** | - Government grants refer to various forms of subsidies provided by local government authorities in China to compensate the Group for expenses incurred, with no unfulfilled conditions or contingencies[151](index=151&type=chunk)[152](index=152&type=chunk) [Other Gains and Losses](index=33&type=section&id=Other%20Gains%20and%20Losses) For the six months ended June 30, 2025, the Group's total other gains and losses amounted to RMB 571,000, primarily derived from tax refunds and exchange gains Other Gains and Losses Composition | Item | For the six months ended June 30, 2025 (RMB thousands) | For the six months ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Tax refunds | 532 | 636 | | Exchange gains | 39 | 18 | | **Total** | **571** | **654** | [Finance Costs](index=33&type=section&id=Finance%20Costs) For the six months ended June 30, 2025, the Group's finance costs amounted to RMB 960,000, primarily consisting of interest on bank borrowings repayable within one year, an increase from the prior period Finance Costs | Item | For the six months ended June 30, 2025 (RMB thousands) | For the six months ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest on bank borrowings | 960 | 519 | [Profit Before Tax](index=34&type=section&id=Profit%20Before%20Tax) For the six months ended June 30, 2025, the Group's profit before tax decreased to RMB 17,490,000 from RMB 23,219,000 in the prior period, with key expenses including staff costs, inventory costs, R&D expenses, and depreciation Profit Before Tax and Key Expenses | Item | For the six months ended June 30, 2025 (RMB thousands) | For the six months ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit Before Tax | 17,490 | 23,219 | | Directors' remuneration | 770 | 403 | | Staff costs (excluding directors' remuneration) | 8,478 | 9,955 | | Cost of inventories recognized as expense | 136,813 | 152,167 | | Research and development expenses | 3,914 | 4,142 | | Depreciation of property, plant and equipment | 6,220 | 5,334 | | Depreciation of right-of-use assets | 546 | 303 | | Short-term lease expenses | 571 | – | [Income Tax Expenses](index=35&type=section&id=Income%20Tax%20Expenses) For the six months ended June 30, 2025, the Group's income tax expense decreased to RMB 2,156,000 from RMB 2,689,000 in the prior period Income Tax Expenses | Item | For the six months ended June 30, 2025 (RMB thousands) | For the six months ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | China corporate income tax - Current income tax | 2,156 | 2,689 | [Earnings Per Share](index=35&type=section&id=Earnings%20Per%20Share) For the six months ended June 30, 2025, basic and diluted earnings per share attributable to owners of the company decreased to RMB 1.93 cents from RMB 2.85 cents in the prior period, with a weighted average of 720,000,000 ordinary shares outstanding Earnings Per Share | Indicator | For the six months ended June 30, 2025 (RMB cents) | For the six months ended June 30, 2024 (RMB cents) | | :--- | :--- | :--- | | Basic and diluted earnings per share | 1.93 | 2.85 | - The weighted average number of ordinary shares outstanding was **720,000,000** shares[161](index=161&type=chunk)[164](index=164&type=chunk) - Diluted earnings per share are the same as basic earnings per share as there were no dilutive potential ordinary shares outstanding during the period[161](index=161&type=chunk) [Dividends](index=36&type=section&id=Dividends) The Board of Directors did not declare an interim dividend for the six months ended June 30, 2025 - The Board of Directors did not declare an interim dividend for the six months ended June 30, 2025[165](index=165&type=chunk)[167](index=167&type=chunk) [Property, Plant and Equipment](index=36&type=section&id=Property%2C%20Plant%20and%20Equipment) For the six months ended June 30, 2025, the Group's cost of acquiring property, plant, and equipment was approximately RMB 12,049,000, a significant decrease from RMB 39,842,000 in the prior period Cost of Property, Plant and Equipment Acquisitions | Period | Amount (RMB thousands) | | :--- | :--- | | For the six months ended June 30, 2025 | 12,049 | | For the six months ended June 30, 2024 | 39,842 | [Trade and Bills Receivables](index=37&type=section&id=Trade%20and%20Bills%20Receivables) As of June 30, 2025, net trade and bills receivables increased to RMB 274,505,000 from December 31, 2024, with a portion of trade receivables over one year old and all bills receivables maturing within six months Net Trade and Bills Receivables | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade receivables (net) | 237,974 | 221,166 | | Bills receivables | 36,531 | 20,108 | | **Total** | **274,505** | **241,274** | Ageing Analysis of Trade Receivables (June 30, 2025) | Ageing | Amount (RMB thousands) | | :--- | :--- | | Within 30 days | 43,635 | | 31 to 90 days | 75,152 | | 91 to 180 days | 82,536 | | 181 to 365 days | 21,386 | | Over 1 year | 31,188 | | **Total** | **253,897** | - All bills receivables have a maturity period of less than **6 months**[172](index=172&type=chunk) [Prepayments, Deposits and Other Receivables](index=38&type=section&id=Prepayments%2C%20Deposits%20and%20Other%20Receivables) As of June 30, 2025, current prepayments, deposits, and other receivables totaled RMB 234,126,000, primarily comprising net other receivables and prepayments, with non-current prepayments of RMB 2,332,000 Current Prepayments, Deposits and Other Receivables | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Other receivables (net) | 40,624 | 395 | | Other tax receivables | – | 4,831 | | Deposits | 148 | 84 | | Prepayments | 193,354 | 201,977 | | **Total** | **234,126** | **207,287** | - Non-current prepayments primarily relate to prepayments for property, plant, and equipment, amounting to **RMB 2,332,000**[174](index=174&type=chunk) [Financial Assets at FVTPL](index=39&type=section&id=Financial%20Assets%20at%20FVTPL) As of June 30, 2025, financial assets at fair value through profit or loss primarily consisted of Hong Kong-listed equity securities totaling RMB 4,339,000, a decrease from December 31, 2024, and classified as current assets due to management's expectation of realization within twelve months Financial Assets at FVTPL | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Hong Kong-listed equity securities | 4,339 | 5,972 | - Listed equity securities are classified as current assets because management expects to realize these financial assets within **twelve months** after the reporting period[177](index=177&type=chunk) [Trade and Bills Payables](index=39&type=section&id=Trade%20and%20Bills%20Payables) As of June 30, 2025, total trade and bills payables increased to RMB 82,584,000 from December 31, 2024, with an average credit period of 30 to 90 days for trade payables and all bills payables maturing within six months Trade and Bills Payables | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade payables | 60,544 | 41,586 | | Bills payables | 22,040 | 28,696 | | **Total** | **82,584** | **70,282** | Ageing Analysis of Trade Payables (June 30, 2025) | Ageing | Amount (RMB thousands) | | :--- | :--- | | Within 30 days | 30,906 | | 31 to 90 days | 15,028 | | 91 to 180 days | 9,484 | | 181 to 365 days | 4,272 | | Over 1 year | 854 | | **Total** | **60,544** | - All bills payables have a maturity period of less than **6 months**[182](index=182&type=chunk) [Other Payables and Accruals](index=40&type=section&id=Other%20Payables%20and%20Accruals) As of June 30, 2025, total other payables and accruals decreased to RMB 15,141,000 from December 31, 2024, primarily including accrued staff costs, accrued expenses, other payables, other tax payables, and contract liabilities Other Payables and Accruals | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Accrued staff costs | 1,884 | 3,276 | | Accrued expenses and other payables | 10,188 | 10,586 | | Other tax payables | 274 | 1,841 | | Contract liabilities | 2,795 | 2,915 | | **Total** | **15,141** | **18,618** | [Bank Borrowings](index=41&type=section&id=Bank%20Borrowings) During this interim period, the Group incurred new bank loans of RMB 32,000,000 and repaid RMB 30,000,000, with total bank borrowings of RMB 66,500,000 as of June 30, 2025, all bearing floating interest rates and secured by certain right-of-use assets - New bank loans of **RMB 32,000,000** were incurred during the period[185](index=185&type=chunk) - As of June 30, 2025, total bank borrowings amounted to **RMB 66,500,000**, all bearing interest at floating rates[41](index=41&type=chunk)[185](index=185&type=chunk) - Bank borrowings are secured by certain right-of-use assets with a net book value of approximately **RMB 15,031,000**[185](index=185&type=chunk) [Share Capital](index=41&type=section&id=Share%20Capital) As of June 30, 2025, the company's authorized share capital was US$5,000,000, divided into 2,000,000,000 ordinary shares of US$0.0025 each, with 720,000,000 issued and fully paid shares totaling RMB 12,705,000, consistent with December 31, 2024 - The authorized share capital is **US$5,000,000**, divided into **2,000,000,000** ordinary shares of **US$0.0025** each[188](index=188&type=chunk) - The issued and fully paid share capital consists of **720,000,000** shares, totaling **RMB 12,705,000**[188](index=188&type=chunk) [Material Related Parties Transactions](index=42&type=section&id=Material%20Related%20Parties%20Transactions) During the reporting period, the Group conducted sales of faux leather chemicals to related party Hangzhou Shenlan Biomaterials Co., Ltd. amounting to RMB 2,235,000, and key management personnel compensation totaled RMB 1,551,000 Related Party Sales | Transacting Party | Transaction Content | For the six months ended June 30, 2025 (RMB thousands) | For the six months ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | :--- | | Hangzhou Shenlan Biomaterials Co., Ltd. | Sale of faux leather chemicals | 2,235 | 1,393 | Key Management Personnel Compensation | Item | For the six months ended June 30, 2025 (RMB thousands) | For the six months ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Salaries, allowances and benefits in kind | 1,493 | 2,798 | | Contributions to retirement benefit schemes | 58 | 44 | | **Total** | **1,551** | **2,842** | [Commitments](index=43&type=section&id=Commitments) As of June 30, 2025, the Group's capital commitments contracted but not provided for amounted to RMB 813,000, primarily for the purchase of property, plant, and equipment Capital Commitments | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Contracted but not provided for - Purchase of property, plant and equipment | 813 | 1,451 | [Fair Value Measurements of Financial Instruments](index=44&type=section&id=Fair%20Value%20Measurements%20of%20Financial%20Instruments) This section presents the Group's financial instruments measured at fair value at the end of the reporting period, including financial assets at FVTPL (HK-listed equity securities) and financial assets at FVOCI (bills receivables), classified into a three-level fair value hierarchy, with no transfers between levels or changes in valuation techniques during the period Fair Value Hierarchy Classification (June 30, 2025) | Item | Level 1 (RMB thousands) | Level 2 (RMB thousands) | Level 3 (RMB thousands) | Total (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Financial assets at FVTPL (Listed equity securities) | 4,339 | – | – | 4,339 | | Financial assets at FVOCI (Bills receivables) | – | 36,531 | – | 36,531 | Fair Value Hierarchy Classification (December 31, 2024) | Item | Level 1 (RMB thousands) | Level 2 (RMB thousands) | Level 3 (RMB thousands) | Total (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Financial assets at FVTPL (Listed equity securities) | 5,972 | – | – | 5,972 | | Financial assets at FVOCI (Bills receivables) | – | 20,108 | – | 20,108 | - There were no transfers between fair value hierarchy levels or changes in valuation techniques for financial instruments measured at fair value during the period[201](index=201&type=chunk)[202](index=202&type=chunk)

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) The company's H1 2025 revenue decreased by **5.4%** to **RMB 580.1 million**, while gross margin improved by **4.6 percentage points** to **34.6%**, and net profit declined by **52.7%** to **RMB 11.2 million** Key Financial Data for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 580.1 | 613.3 | -5.4% | | Gross Margin | 34.6% | 30.0% | +4.6 percentage points | | Net Profit | 11.2 | 23.7 | -52.7% | - Excluding the impact of terminated brand collaborations, revenue increased by **2.5%** year-on-year, indicating a slowdown in the decline trend[3](index=3&type=chunk) - Gross margin steadily improved, achieved through renegotiating transaction terms, adjusting product structure, and focusing on profitable sales channels[4](index=4&type=chunk) - Net profit declined by **52.7%**, but remained largely flat after excluding non-operating items, including equity transfer in the prior period and increased impairment losses[5](index=5&type=chunk) [Interim Condensed Consolidated Financial Statements](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) This section presents the company's interim condensed consolidated financial statements, including the statement of comprehensive income, statement of financial position, statement of changes in equity, and statement of cash flows for the reporting period [Interim Condensed Consolidated Statement of Comprehensive Income](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) During the reporting period, the company's revenue was **RMB 580.1 million**, gross profit was **RMB 200.5 million**, operating profit was **RMB 12.3 million**, and profit for the period was **RMB 11.2 million**, with basic and diluted earnings per share at **RMB 0.07** Summary of Interim Condensed Consolidated Statement of Comprehensive Income | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 580,075 | 613,304 | | Cost of Sales | (379,600) | (429,583) | | Gross Profit | 200,475 | 183,721 | | Selling and Marketing Expenses | (158,492) | (135,237) | | Operating Profit | 12,272 | 16,428 | | Profit for the Period | 11,203 | 23,709 | | Basic Earnings Per Share (RMB) | 0.07 | 0.15 | | Diluted Earnings Per Share (RMB) | 0.07 | 0.15 | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets were **RMB 1,178.6 million**, a slight decrease from December 31, 2024, with total equity at **RMB 737.8 million** and total liabilities at **RMB 440.7 million** Summary of Interim Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Assets | 1,178,556 | 1,189,953 | | Total Equity | 737,847 | 720,473 | | Total Liabilities | 440,709 | 469,480 | | Cash and Cash Equivalents | 364,716 | 438,576 | | Inventories | 298,730 | 264,986 | | Trade and Other Receivables | 270,235 | 233,873 | | Trade and Other Payables | 196,407 | 246,280 | [Interim Condensed Consolidated Statement of Changes in Equity](index=6&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) As of June 30, 2025, total equity attributable to owners of the company was **RMB 736.8 million**, an increase from the beginning of the year, primarily due to profit for the period and other comprehensive income Summary of Interim Condensed Consolidated Statement of Changes in Equity | Indicator | June 30, 2025 (RMB thousand) | January 1, 2025 (RMB thousand) | | :--- | :--- | :--- | | Total Equity Attributable to Owners of the Company | 736,840 | 719,467 | | Profit for the Period | 11,203 | – | | Other Comprehensive Income | 6,170 | – | [Interim Condensed Consolidated Statement of Cash Flows](index=7&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash outflow from operating activities was **RMB 90.2 million**, net cash outflow from investing activities was **RMB 0.6 million**, and net cash inflow from financing activities was **RMB 16.7 million**, with cash and cash equivalents at period-end totaling **RMB 364.7 million** Summary of Interim Condensed Consolidated Statement of Cash Flows | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Cash from Operating Activities | (90,177) | 88,648 | | Net Cash Used in Investing Activities | (570) | (8,728) | | Net Cash from Financing Activities | 16,709 | (52,808) | | Net Change in Cash and Cash Equivalents | (74,038) | 27,112 | | Cash and Cash Equivalents at Period-End | 364,716 | 365,413 | [Notes to the Interim Condensed Consolidated Financial Information](index=8&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) This section provides detailed notes to the interim condensed consolidated financial information, covering general information, basis of presentation, critical accounting estimates, financial risk management, segment information, revenue breakdown, expenses by nature, finance income and costs, income tax, earnings per share, inventories, trade and other receivables, borrowings, trade and other payables, dividends, and related party transactions [1 General Information](index=8&type=section&id=1%20General%20Information) The company was incorporated in the Cayman Islands on October 31, 2019, primarily engaging in B2B and B2C commodity sales, online brand operations, and digital marketing services in China, with its shares listed on the Main Board of the Hong Kong Stock Exchange on July 12, 2021 - Company's place of incorporation: Cayman Islands, date of incorporation: October 31, 2019[16](index=16&type=chunk) - Principal activities: Commodity sales (B2B and B2C), online brand operation services, and digital marketing services in China[16](index=16&type=chunk) - Listing information: Listed on the Main Board of the Hong Kong Stock Exchange on July 12, 2021[17](index=17&type=chunk) - This interim condensed consolidated financial information is unaudited and was approved by the Board of Directors on August 29, 2025[19](index=19&type=chunk)[20](index=20&type=chunk) [2 Basis of Presentation](index=8&type=section&id=2%20Basis%20of%20Presentation) The interim condensed consolidated financial statements are prepared in accordance with IAS 34, applying consistent accounting policies with the 2024 annual consolidated financial statements, with the initial adoption of IAS 21 amendment 'Lack of Exchangeability' having no material impact on performance or financial position - Basis of preparation: International Accounting Standard 34 – "Interim Financial Reporting"[24](index=24&type=chunk) - Accounting policies: Consistent with those applied in the annual consolidated financial statements as of December 31, 2024[21](index=21&type=chunk) - Initial adoption of IAS 21 amendment "Lack of Exchangeability" had no material impact on the Group's performance and financial position[21](index=21&type=chunk)[22](index=22&type=chunk) [3 Critical Accounting Estimates and Judgements](index=9&type=section&id=3%20Critical%20Accounting%20Estimates%20and%20Judgements) The company's critical accounting judgments and estimates have remained substantially unchanged since December 31, 2024 - Critical accounting judgments and estimates: Remained substantially unchanged since December 31, 2024[25](index=25&type=chunk) [4 Financial Risk Management and Financial Instruments](index=9&type=section&id=4%20Financial%20Risk%20Management%20and%20Financial%20Instruments) The Group is exposed to market risks (foreign exchange, interest rate), credit risk, and liquidity risk, with no changes in risk management policies since December 31, 2024, and fair value measurements of financial assets, including investments in private equity funds, are primarily based on unobservable inputs (Level 3) [4.1 Financial Risk Factors](index=9&type=section&id=4.1%20Financial%20Risk%20Factors) The Group's operations are exposed to various financial risks, including market, credit, and liquidity risks, with no changes in risk management policies since the last reporting period - The Group's operating activities are exposed to market risks (including foreign exchange risk and cash flow and fair value interest rate risk), credit risk, and liquidity risk[26](index=26&type=chunk) - There have been no changes in risk management policies since December 31, 2024[27](index=27&type=chunk) [4.2 Fair Value Estimation](index=9&type=section&id=4.2%20Fair%20Value%20Estimation) Fair value measurements are categorized into three levels based on input observability, with the Group's investments in private equity funds primarily valued using Level 3 unobservable inputs - Fair value hierarchy classification: Level 1 (quoted prices in inactive markets), Level 2 (observable inputs), Level 3 (unobservable inputs)[28](index=28&type=chunk) Financial Assets Measured at Fair Value (Investments in Private Equity Funds) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Investments in Private Equity Funds (Level 3) | 34,719 | 34,864 | - The Group's financial assets measured at fair value include investments in private equity funds, whose fair values are estimated based on unobservable inputs (Level 3)[31](index=31&type=chunk) - Valuation techniques include market quotes for similar instruments, discounted cash flow models, and unobservable inputs, with no changes in valuation techniques during the reporting period[32](index=32&type=chunk)[33](index=33&type=chunk) Movement in Level 3 Financial Assets (Investment Funds) | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Balance at January 1 | 34,864 | 35,414 | | Exchange Differences | (145) | 44 | | Balance at June 30 | 34,719 | 35,458 | [4.3 Fair Value of Financial Assets and Liabilities Measured at Amortized Cost](index=11&type=section&id=4.3%20Fair%20Value%20of%20Financial%20Assets%20and%20Liabilities%20Measured%20at%20Amortized%20Cost) Due to their short maturity, the carrying amounts of the Group's current financial assets and liabilities approximate their fair values - Due to their short maturity, the carrying amounts of the Group's current financial assets (including cash and cash equivalents, restricted cash, trade and other receivables) and financial liabilities (including borrowings, lease liabilities, trade and other payables) approximate their fair values[36](index=36&type=chunk) [5 Segment Information](index=11&type=section&id=5%20Segment%20Information) The Group's chief operating decision maker is the CEO, with its principal operations and non-current assets primarily located in China, and revenue predominantly generated from China, hence no segment information is presented - Chief operating decision maker: Chief Executive Officer[37](index=37&type=chunk) - The Group primarily conducts its business in China, with most non-current assets and revenue located in China[37](index=37&type=chunk) - Therefore, no segment information is presented for the six months ended June 30, 2025 and 2024[38](index=38&type=chunk) [6 Revenue](index=12&type=section&id=6%20Revenue) For the six months ended June 30, 2025, the Group's total revenue was **RMB 580.1 million**, primarily from B2B and B2C commodity sales and service provision, with revenue mainly generated in China and Customer A contributing over **10%** of total revenue [6.1 Revenue by Business Model](index=12&type=section&id=6.1%20Revenue%20by%20Business%20Model) The Group's revenue is primarily derived from B2B and B2C commodity sales, with a smaller portion from service provision Revenue by Business Model | Business Model | H1 2025 (RMB thousand) | H1 2025 (%) | H1 2024 (RMB thousand) | H1 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Commodity Sales (B2B) | 287,721 | 49.6 | 271,246 | 44.3 | | Commodity Sales (B2C) | 290,369 | 50.0 | 337,666 | 55.1 | | Service Provision | 1,985 | 0.4 | 4,392 | 0.6 | | **Total** | **580,075** | **100.0** | **613,304** | **100.0** | [6.2 Revenue by Geographical Market](index=12&type=section&id=6.2%20Revenue%20by%20Geographical%20Market) The Group's revenue for the reporting periods was predominantly generated within China - The Group's revenue for the six months ended June 30, 2025 and 2024 was primarily generated in China[42](index=42&type=chunk) [6.3 Major Customer Information](index=12&type=section&id=6.3%20Major%20Customer%20Information) Customer A was a significant contributor to the Group's total revenue in the first half of 2025 Major Customer Revenue | Customer | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Customer A | 180,982 | 196,072 | - Customer A contributed **RMB 181.0 million** in revenue in H1 2025, accounting for over **10%** of total revenue[44](index=44&type=chunk) [7 Expenses by Nature](index=12&type=section&id=7%20Expenses%20by%20Nature) For the six months ended June 30, 2025, cost of goods sold was **RMB 379.1 million**, selling and marketing expenses were **RMB 84.3 million**, and warehousing and logistics expenses were **RMB 50.9 million**, totaling **RMB 561.0 million** in expenses Expenses by Nature | Expense Category | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of Goods Sold | 379,149 | 429,094 | | Selling and Marketing Expenses | 84,332 | 45,794 | | Warehousing and Logistics Expenses | 50,915 | 60,197 | | Employee Benefit Expenses | 36,273 | 45,858 | | Depreciation and Amortization Expenses | 3,768 | 3,862 | | Office Expenses | 902 | 1,616 | | Auditor's Remuneration | 1,060 | 940 | | Others | 4,621 | 5,363 | | **Total** | **561,020** | **592,724** | [8 Finance Income and Costs](index=13&type=section&id=8%20Finance%20Income%20and%20Costs) For the six months ended June 30, 2025, net finance income was **RMB 1.3 million**, primarily comprising **RMB 4.5 million** in bank interest income and **RMB 3.2 million** in interest expense on borrowings Finance Income and Costs | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Bank Interest Income | 4,524 | 5,538 | | Interest Expense on Borrowings | (3,217) | (2,697) | | **Net Finance Income** | **1,307** | **2,841** | [9 Income Tax Expense](index=13&type=section&id=9%20Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense was **RMB 2.3 million**, primarily comprising current and deferred income tax, with the Group subject to varying tax rates across jurisdictions, including Hong Kong profits tax at **8.25%**/ **16.5%**, Japanese corporate income tax at approximately **30%**, and PRC corporate income tax at **25%** [9.1 Tax Rates in Various Jurisdictions](index=13&type=section&id=9.1%20Tax%20Rates%20in%20Various%20Jurisdictions) The Group operates under different tax regimes, with specific tax rates applicable in various jurisdictions such as Hong Kong, Japan, and China Income Tax Expense | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Current Income Tax | (5,106) | (4,243) | | Deferred Income Tax | 2,851 | (333) | | **Income Tax Expense** | **(2,255)** | **(4,576)** | - Cayman Islands and British Virgin Islands: No tax payable on income or capital gains[49](index=49&type=chunk)[50](index=50&type=chunk) - Hong Kong: Taxable profits up to **HKD 2,000,000** are taxed at **8.25%**, with the remainder at **16.5%**[51](index=51&type=chunk) - Japan: Effective statutory tax rate of approximately **30%**[52](index=52&type=chunk) - China: Corporate income tax at a general rate of **25%**; withholding tax rate of **5%** or **10%**[53](index=53&type=chunk)[54](index=54&type=chunk) [10 Earnings Per Share](index=14&type=section&id=10%20Earnings%20Per%20Share) For the six months ended June 30, 2025, basic and diluted earnings per share were **RMB 0.07**, a decrease from **RMB 0.15** in the prior year, with no potential dilutive ordinary shares during the period Earnings Per Share | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Profit Attributable to Owners of the Company (RMB thousand) | 11,203 | 24,422 | | Weighted Average Number of Ordinary Shares Issued | 165,894,700 | 165,894,700 | | Basic Earnings Per Share (RMB) | 0.07 | 0.15 | | Diluted Earnings Per Share (RMB) | 0.07 | 0.15 | - For the six months ended June 30, 2025 and 2024, the company had no potential dilutive ordinary shares, thus diluted earnings per share equal basic earnings per share[55](index=55&type=chunk) [11 Inventories](index=14&type=section&id=11%20Inventories) As of June 30, 2025, total inventories amounted to **RMB 298.7 million**, an increase from December 31, 2024, with an inventory provision of **RMB 7.4 million** Inventory Composition | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Goods | 306,102 | 272,852 | | Less: Provision | (7,372) | (7,866) | | **Total** | **298,730** | **264,986** | Movement in Inventory Provision | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | At Beginning of Period | 7,866 | 26,932 | | Expense During Period – Reversal from P&L | (823) | (9,851) | | Expense During Period – Exchange Differences | 329 | 519 | | **At End of Period** | **7,372** | **17,600** | [12 Trade and Other Receivables](index=15&type=section&id=12%20Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables were **RMB 270.2 million**, an increase from December 31, 2024, comprising **RMB 191.3 million** in trade receivables and **RMB 131.9 million** in other receivables, with total impairment provisions of **RMB 53.0 million** [12.1 Total Trade and Other Receivables](index=15&type=section&id=12.1%20Total%20Trade%20and%20Other%20Receivables) The total amount of trade and other receivables increased as of June 30, 2025, with a corresponding increase in impairment provisions Total Trade and Other Receivables | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables | 191,312 | 169,239 | | Other Receivables | 131,930 | 110,768 | | Less: Impairment Provisions | (53,007) | (46,134) | | **Total Trade and Other Receivables** | **270,235** | **233,873** | [12.2 Trade Terms and Credit Policy](index=15&type=section&id=12.2%20Trade%20Terms%20and%20Credit%20Policy) The Group primarily extends credit to customers, with credit periods generally ranging from 7 to 90 days, and maintains strict control over outstanding receivables without holding collateral - The Group's trade terms with customers are primarily credit-based, with credit periods generally 7 days from invoice date, extendable up to 90 days[59](index=59&type=chunk) - The Group seeks to maintain strict control over its outstanding receivables, with overdue balances regularly reviewed by senior management[59](index=59&type=chunk) - The Group does not hold any collateral or other credit enhancements for its trade receivables balances[59](index=59&type=chunk) [12.3 Ageing Analysis of Trade Receivables](index=15&type=section&id=12.3%20Ageing%20Analysis%20of%20Trade%20Receivables) The ageing analysis of trade receivables shows a significant portion due within three months, with a notable amount over one year Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 3 Months | 111,179 | 100,922 | | 3 to 6 Months | 15,557 | 3,868 | | 6 Months to 1 Year | 851 | 223 | | Over 1 Year | 63,725 | 64,226 | | **Total** | **191,312** | **169,239** | [12.4 Ageing Analysis of Other Receivables](index=16&type=section&id=12.4%20Ageing%20Analysis%20of%20Other%20Receivables) The majority of other receivables are due within three months, with a smaller portion outstanding for over one year Ageing Analysis of Other Receivables | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 3 Months | 128,930 | 107,610 | | 3 to 6 Months | – | 158 | | 6 Months to 1 Year | – | 3,000 | | Over 1 Year | 3,000 | – | | **Total** | **131,930** | **110,768** | [12.5 Movement in Impairment Provisions](index=16&type=section&id=12.5%20Movement%20in%20Impairment%20Provisions) Impairment provisions for trade and other receivables increased during the period, reflecting additional deductions from profit or loss Movement in Impairment Provisions for Trade and Other Receivables | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | At Beginning of Period | 46,134 | 34,894 | | Expense During Period – Deducted from P&L | 6,838 | 3,756 | | Expense During Period – Exchange Differences | 35 | (25) | | **At End of Period** | **53,007** | **38,625** | Composition of Impairment Provisions for Trade and Other Receivables | Category | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables | 5,905 | 3,542 | | Other Receivables | 933 | 214 | | **Total** | **6,838** | **3,756** | [13 Borrowings](index=16&type=section&id=13%20Borrowings) As of June 30, 2025, the Group's total borrowings amounted to **RMB 223.4 million**, comprising **RMB 187.7 million** in secured or guaranteed borrowings and **RMB 35.7 million** in unsecured borrowings Borrowings Composition | Borrowing Type | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Secured or Guaranteed (Current Portion) | 186,200 | 168,000 | | Secured or Guaranteed (Non-Current Portion) | 1,488 | 4,697 | | Unsecured (Current Portion) | 9,919 | – | | Unsecured (Non-Current Portion) | 25,792 | 23,608 | | **Total Borrowings** | **223,399** | **200,398** | [14 Trade and Other Payables](index=17&type=section&id=14%20Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables were **RMB 196.4 million**, a decrease from December 31, 2024, with trade payables at **RMB 129.1 million** and other payables at **RMB 49.2 million** Trade and Other Payables Composition | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Payables | 129,070 | 179,673 | | Other Payables | 49,188 | 38,467 | | Accrued Salaries | 11,236 | 21,345 | | Other Taxes Payable | 6,726 | 6,539 | | Interest Payable | 187 | 256 | | **Total** | **196,407** | **246,280** | Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 3 Months | 95,378 | 44,005 | | 3 to 6 Months | 53 | 135,668 | | 6 Months to 1 Year | 33,639 | – | | **Total** | **129,070** | **179,673** | [15 Dividends](index=18&type=section&id=15%20Dividends) The Board resolved not to declare an interim dividend for the six months ended June 30, 2025 (H1 2024: **HKD 0.25** per share), while a final dividend of **HKD 0.5** per share for the year ended December 31, 2024, was paid on July 16, 2025 - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025 (H1 2024: **HKD 0.25**)[63](index=63&type=chunk) - The company declared a dividend of **HKD 0.5** per share for the year ended December 31, 2024, which was paid on July 16, 2025[63](index=63&type=chunk) [16 Related Party Transactions](index=18&type=section&id=16%20Related%20Party%20Transactions) The Group engages in related party transactions with its controlling shareholder Mr. Wang Yong, shareholder TCI, and its associates, primarily involving sales of goods, purchases of goods and services, provision of deposits, borrowings, and receivables/payables [16.1 Names and Relationships of Related Parties](index=18&type=section&id=16.1%20Names%20and%20Relationships%20of%20Related%20Parties) Key related parties include the controlling shareholder, a significant shareholder, and an associate of the Group's supply chain entity - Mr. Wang Yong: Controlling shareholder of the Group[64](index=64&type=chunk) - Transcosmos Inc (TCI): Shareholder of the Group[64](index=64&type=chunk) - Shanghai Xuyi Industrial Co., Ltd.: An associate of Uquhu Supply Chain[64](index=64&type=chunk)[66](index=66&type=chunk) [16.2 Details of Related Party Transactions](index=18&type=section&id=16.2%20Details%20of%20Related%20Party%20Transactions) Transactions with related parties include sales and purchases of goods and services, provision of deposits, and borrowings, with corresponding balances in receivables and payables Related Party Transactions | Transaction Type | Related Party | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | :--- | | Sales of Goods and Service Provision | Shanghai Xuyi | – | 49 | | Return of Goods | Shanghai Xuyi | (60) | – | | Purchases of Goods and Services | TCI | 31,893 | 23,171 | | Deposits Provided | Shanghai Xuyi | 48,000 | 50,000 | | Borrowings | Uquhu International Hong Kong | – | 18,290 | Related Party Transaction Balances | Balance Type | Related Party | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | :--- | | Trade Receivables | Shanghai Xuyi | 61,141 | 61,209 | | Other Receivables | TCI | 5,336 | 2,663 | | Trade Payables | TCI | 7,760 | 4,658 | | Other Payables | TCI | 32 | 347 | | Dividends Receivable | Uquhu International Hong Kong | 20,139 | 20,139 | [Management Discussion and Analysis](index=20&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the company's performance, a detailed analysis of key financial data, and insights into liquidity and financial resources for the reporting period [Overview](index=20&type=section&id=Overview) In H1 2025, despite steady economic growth and intensified market competition in China, the company strategically restructured its brand portfolio, actively expanded into the health sector by introducing new health brands and investing in its own health brands, optimized brand operations by enhancing supply chain efficiency and expanding overseas markets, with its own brand Vanpearl contributing **RMB 14.0 million** in revenue and forming a strategic partnership with Novo Xinyuan Probio - Market environment: China's economy experienced steady growth, but consumer price sensitivity continued to rise, intensifying industry competition and leading to a "price-for-volume" deep involution pattern[68](index=68&type=chunk) - Strategic initiatives: Systematically reviewed the brand matrix, actively expanded into the health sector, introduced new health business brands, and increased strategic investment in proprietary health brands such as Vanpearl[68](index=68&type=chunk)[70](index=70&type=chunk) - Brand operation services: Optimized low-gross-margin brands and channels, deepened cooperation with core brand partners, continuously expanded overseas markets, and improved supply chain operational efficiency[69](index=69&type=chunk) - Newly introduced health brands contributed **RMB 12.5 million** in revenue[69](index=69&type=chunk) - Proprietary health food brand Vanpearl achieved sales revenue of **RMB 14.0 million**[70](index=70&type=chunk) - Revenue from Douyin, Pinduoduo, and overseas businesses accounted for **12.4%** of the Group's total revenue, an increase of **1.3 percentage points** year-on-year[69](index=69&type=chunk) Key Financial Indicators for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 580.1 | 613.3 | -5.4% | | Gross Margin | 34.6% | 30.0% | +4.6 percentage points | | Net Profit | 11.2 | 23.7 | -52.7% | [Analysis of Key Financial Data](index=21&type=section&id=Analysis%20of%20Key%20Financial%20Data) This section provides a detailed analysis of key financial metrics including revenue, gross profit and margin, operating profit, and earnings per share, noting a slowdown in revenue decline driven by improved existing brand operational efficiency and new brand incubation, significant gross margin growth due to optimized transaction terms, product structure adjustments, and channel profit restructuring, and a decrease in operating profit and EPS impacted by increased impairment losses and termination of certain brand collaborations [Revenue](index=21&type=section&id=Revenue) Overall revenue for H1 2025 decreased by **5.4%** year-on-year, but the decline trend slowed due to improved operational efficiency of existing brands and the successful incubation of new health food brands - Overall revenue for H1 2025 was **RMB 580.1 million**, a **5.4%** decrease year-on-year, with the decline trend slowing[72](index=72&type=chunk) - The slowdown in revenue decline was primarily due to: improved operational efficiency of existing brands and strengthened cooperation in beauty and personal care; and the newly incubated proprietary health food brand contributing **RMB 14.0 million** in revenue (a **729.1%** year-on-year increase)[72](index=72&type=chunk) - The revenue decline was partly due to: strategic adjustments in cooperation, leading to the termination of collaboration with a personal care brand[72](index=72&type=chunk) Sales of Goods and Services Revenue by Product Category | Product Category | H1 2025 (RMB thousand) | H1 2025 (%) | H1 2024 (RMB thousand) | H1 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Adult Personal Care Products | 357,390 | 61.5 | 399,409 | 65.3 | | Infant and Child Personal Care Products | 44,464 | 7.7 | 63,236 | 10.3 | | Beauty Products | 58,144 | 10.0 | 50,899 | 8.3 | | Health Products | 86,902 | 15.0 | 60,816 | 9.9 | | Others | 31,190 | 5.4 | 34,552 | 5.6 | | Service Provision | 1,985 | 0.4 | 4,392 | 0.6 | | **Total** | **580,075** | **100.0** | **613,304** | **100.0** | - Health product sales revenue increased by **42.9%** year-on-year, primarily due to **RMB 14.0 million** contributed by the newly incubated proprietary health food brand Vanpearl and an additional **RMB 12.5 million** from newly introduced health brands[77](index=77&type=chunk) - Service revenue decreased by **54.8%** year-on-year, mainly due to the termination of certain e-commerce operation businesses with no growth[77](index=77&type=chunk) [Gross Profit and Gross Margin](index=23&type=section&id=Gross%20Profit%20and%20Gross%20Margin) The overall gross margin increased by **4.6 percentage points** to **34.6%**, driven by optimized transaction terms, product structure adjustments, and a focus on high-margin channels - Overall gross margin was **34.6%**, an increase of **4.6 percentage points** from **30.0%** in the prior period[78](index=78&type=chunk) - Gross margin improvement was primarily due to: strengthened collaboration with brand partners and optimized transaction terms for key products; continuous optimization of product structure, with an increased sales proportion of high-margin health products; and restructuring of channel profit, increasing the revenue share from high-margin channels[78](index=78&type=chunk) Gross Profit and Gross Margin by Business Model | Business Model | H1 2025 (RMB thousand) | H1 2025 (%) | H1 2024 (RMB thousand) | H1 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Commodity Sales (B2B) | 41,809 | 14.5 | 40,748 | 15.0 | | Commodity Sales (B2C) | 157,085 | 54.1 | 139,434 | 41.3 | | Service Provision | 1,581 | 79.6 | 3,539 | 80.6 | | **Total** | **200,475** | **34.6** | **183,721** | **30.0** | Gross Profit and Gross Margin by Product Category | Product Category | H1 2025 (RMB thousand) | H1 2025 (%) | H1 2024 (RMB thousand) | H1 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Adult Personal Care Products | 110,456 | 30.9 | 100,001 | 25.0 | | Infant and Child Personal Care Products | 16,664 | 37.5 | 20,978 | 33.2 | | Beauty Products | 19,407 | 33.4 | 17,543 | 34.5 | | Health Products | 36,112 | 41.6 | 24,710 | 40.6 | | Others | 16,255 | 52.1 | 16,950 | 49.1 | | Service Provision | 1,581 | 79.6 | 3,539 | 80.6 | | **Total** | **200,475** | **34.6** | **183,721** | **30.0** | - Gross margin for adult personal care products increased by **5.9 percentage points**, primarily due to deeper cooperation with brand partners, improved transaction terms, and channel structure upgrades[80](index=80&type=chunk) - Gross margin for health products increased by **1.0 percentage point**, mainly due to higher gross margins from newly introduced health brands and proprietary health food brands, as well as ample supply of high-margin products in cross-border health categories[81](index=81&type=chunk) [Operating Profit and Earnings Per Share](index=24&type=section&id=Operating%20Profit%20and%20Earnings%20Per%20Share) Operating profit decreased by **RMB 4.1 million** to **RMB 12.3 million**, primarily due to increased impairment losses and the termination of certain brand collaborations, while basic earnings per share also declined - Operating profit was **RMB 12.3 million**, a year-on-year decrease of **RMB 4.1 million**[82](index=82&type=chunk) - The decrease in operating profit was mainly due to an increase in impairment losses of **RMB 3.1 million** compared to the prior period, and the termination of cooperation with certain brands[82](index=82&type=chunk) - Excluding the impact of terminating cooperation with a specific brand, overall operating profit increased by **13.6%** year-on-year[82](index=82&type=chunk) - Basic earnings per share were **RMB 0.07**, compared to **RMB 0.15** in the prior period[82](index=82&type=chunk) [Liquidity and Financial Resources](index=24&type=section&id=Liquidity%20and%20Financial%20Resources) The Group primarily meets its cash requirements through cash generated from operations and bank borrowings, with cash and cash equivalents at **RMB 364.7 million** as of June 30, 2025, and a low gearing ratio indicating financial stability, while this section also covers capital expenditure, significant investments, employee policies, foreign exchange risk, receivables management, and contingent liabilities [Cash Flows](index=24&type=section&id=Cash%20Flows) Net cash outflow from operating activities was **RMB 90.2 million**, primarily due to increased inventory purchases for new brand launches and extended collection cycles for B2B trade receivables, while financing activities generated net cash inflow Cash Flow Summary | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Cash from Operating Activities | (90,177) | 88,648 | | Net Cash Used in Investing Activities | (570) | (8,728) | | Net Cash from Financing Activities | 16,709 | (52,808) | | Cash and Cash Equivalents at Period-End | 364,716 | 365,413 | - Net cash used in operating activities was **RMB 90.2 million**, primarily due to increased inventory purchases for new brand launches and extended collection cycles for trade receivables from expanded B2B business[84](index=84&type=chunk) - Net cash used in investing activities was **RMB 0.6 million**, mainly for the purchase of intangible asset software[85](index=85&type=chunk) - Net cash from financing activities was **RMB 16.7 million**, primarily due to increased funding needs for new business expansion, leading to a net increase in borrowings[85](index=85&type=chunk) [Capital Structure](index=25&type=section&id=Capital%20Structure) The Group maintains a low gearing ratio and ample cash balance, indicating a robust capital structure - As of June 30, 2025, the Group's gearing ratio was **-18.6%** (December 31, 2024: **-32.5%**), indicating a low level of borrowings and a relatively abundant cash balance on hand[86](index=86&type=chunk) [Bank and Other Borrowings, Charges on Assets](index=25&type=section&id=Bank%20and%20Other%20Borrowings%2C%20Charges%20on%20Assets) The Group's total borrowings primarily consist of bank loans, with a significant portion secured or guaranteed, and maintains substantial unutilized bank facilities - As of June 30, 2025, the Group's total borrowings amounted to **RMB 223.4 million**, primarily comprising bank borrowings[87](index=87&type=chunk) - Of this, **RMB 187.7 million** in borrowings are guaranteed by the company and its subsidiaries, with interest rates primarily fixed[87](index=87&type=chunk) - As of June 30, 2025, the Group's unutilized bank facilities amounted to **RMB 155.4 million**[88](index=88&type=chunk) [Capital Expenditure and Capital Commitments](index=26&type=section&id=Capital%20Expenditure%20and%20Capital%20Commitments) The Group incurred minimal capital expenditure during the reporting period and had no significant capital commitments as of June 30, 2025 - For the six months ended June 30, 2025, the Group's capital expenditure was **RMB 0.6 million** (H1 2024: zero)[89](index=89&type=chunk) - As of June 30, 2025, the Group had no significant capital commitments[89](index=89&type=chunk) [Future Plans for Material Investments and Capital Assets](index=26&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) The Group has no other significant plans for material investments or capital assets as of the reporting date - As of June 30, 2025, the Group had no other plans for material investments and capital assets[90](index=90&type=chunk) [Material Investments Held](index=26&type=section&id=Material%20Investments%20Held) The Group did not hold any material investments in the equity of other companies during the reporting period - For the six months ended June 30, 2025, the Group did not hold any material investments in the equity of any other companies[91](index=91&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=26&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) The Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period - For the six months ended June 30, 2025, the Group did not undertake any material acquisitions or disposals of subsidiaries, associates, and joint ventures[92](index=92&type=chunk) [Employees and Remuneration Policy](index=26&type=section&id=Employees%20and%20Remuneration%20Policy) The Group maintains a stable workforce of 199 employees, primarily in China and Japan, with a competitive remuneration policy and no significant labor disputes - As of June 30, 2025, the Group had a total of **199** employees, mostly located in China, with some in Japan[93](index=93&type=chunk) - The remuneration policy is competitive, including salaries, discretionary bonuses, and benefit plans, along with various internal and external training opportunities[93](index=93&type=chunk) - The company maintains stable employee relations and has not experienced any strikes or other labor disputes that significantly impacted the Group's business activities[93](index=93&type=chunk) [Foreign Exchange Risk](index=26&type=section&id=Foreign%20Exchange%20Risk) The Group's primary foreign exchange risk arises from fluctuations in the US Dollar and Japanese Yen against the Renminbi, as most transactions are settled in RMB - The Group primarily operates in mainland China, with most transactions settled in Renminbi[94](index=94&type=chunk) - The foreign exchange risk borne by the Group primarily arises from fluctuations in the exchange rates of the US Dollar and Japanese Yen against the Renminbi[94](index=94&type=chunk) [Trade and Other Receivables](index=27&type=section&id=Trade%20and%20Other%20Receivables) Trade receivables increased due to expanded B2B business, leading to higher impairment provisions, while other receivables also rose due to extended rebate settlement cycles with key suppliers and risks associated with office lease termination - As of June 30, 2025, trade receivables were **RMB 191.3 million**, an increase of **RMB 22.1 million** from December 31, 2024, primarily due to the expanded B2B business on Tmall and JD[95](index=95&type=chunk) - Impairment provisions for trade receivables were **RMB 48.1 million**, an increase of **RMB 5.9 million** from December 31, 2024, mainly due to impairment provisions for Shanghai Xuyi[95](index=95&type=chunk) - The overall trade receivables turnover days remained at a healthy **41.9 days** (December 31, 2024: **38.1 days**)[95](index=95&type=chunk) - Related party receivables (Shanghai Xuyi) balance was **RMB 61.1 million**, accounting for **31.9%** of total trade receivables, with total expected credit loss provisions of **RMB 42.0 million** recognized[96](index=96&type=chunk) - Other receivables increased to **RMB 131.9 million**, up **RMB 21.1 million**, primarily due to extended rebate settlement cycles with major suppliers based on long-term strategic cooperation and mutual benefit principles[97](index=97&type=chunk) - Impairment provisions for other receivables were **RMB 4.9 million**, an increase of **RMB 1.0 million**, mainly due to risks in recovering office deposits from early termination of the Shanghai office lease[97](index=97&type=chunk) [Contingent Liabilities](index=27&type=section&id=Contingent%20Liabilities) The Group had no significant contingent liabilities for the six months ended June 30, 2025 - For the six months ended June 30, 2025, the Group had no significant contingent liabilities[98](index=98&type=chunk) [Events After the Reporting Period](index=27&type=section&id=Events%20After%20the%20Reporting%20Period) There have been no material events after the reporting period up to the date of this announcement - The Group had no material events after June 30, 2025, and up to the date of this announcement[99](index=99&type=chunk) [No Material Changes](index=28&type=section&id=No%20Material%20Changes) There have been no material changes in the company's business since the publication of its latest annual report - There have been no material changes in the company's business since the publication of its latest annual report for the year ended December 31, 2024[100](index=100&type=chunk) [Other Information](index=28&type=section&id=Other%20Information) This section provides additional information on the company's outlook, corporate governance practices, directors' securities transactions, interim dividend, audit committee, and the utilization of listing proceeds [Outlook](index=28&type=section&id=Outlook) In H2 2025, the Group plans to accelerate the incubation of its own brands in health food and skincare, expand into Southeast Asian and North American markets, and support refined operations with a digital platform to achieve long-term sustainable growth - Brand incubation: Accelerate the incubation of proprietary brands in health food, skincare, and other areas, co-creating brands with quality partners to build a diversified product matrix[102](index=102&type=chunk) - Overseas expansion: Prioritize expansion into Southeast Asian and North American markets through cross-border DTC, key pharmacy chains, and local KOL ecosystem linkages to enhance brand awareness and penetration[102](index=102&type=chunk) - Refined operations: Leverage a digital middle platform to establish a closed-loop data system across R&D, supply chain, and marketing, implementing refined product selection, flexible supply chain, and precise targeting to continuously optimize cost structure and user experience[102](index=102&type=chunk) [Corporate Governance Practices](index=29&type=section&id=Corporate%20Governance%20Practices) The company is committed to maintaining high standards of corporate governance, having adopted the Corporate Governance Code in Appendix C1 of the Listing Rules, with Mr. Wang Yong serving as both Chairman and CEO, a deviation from Code Provision C.2.1, which the Board believes provides strong and consistent leadership and sufficient checks and balances for the company's development - The company has adopted the Corporate Governance Code as set out in Appendix C1 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited as its governance code[103](index=103&type=chunk) - The roles of Chairman of the Board and Chief Executive Officer of the company are currently held by Mr. Wang Yong, which deviates from Code Provision C.2.1 of the Corporate Governance Code[103](index=103&type=chunk)[104](index=104&type=chunk) - The Board believes this structure provides strong and consistent leadership for the Group and facilitates the effective implementation of the Group's business strategies, with sufficient checks and balances within the Board[104](index=104&type=chunk)[105](index=105&type=chunk) [Standard Code for Securities Transactions by Directors](index=30&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules, and all directors have confirmed compliance with its standards 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 of the Listing Rules[106](index=106&type=chunk) - Following specific enquiries 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[106](index=106&type=chunk) [Interim Dividend](index=30&type=section&id=Interim%20Dividend) The Board resolved not to declare any interim dividend for the six months ended June 30, 2025 (H1 2024: **HKD 0.25**) - The Board resolved not to declare any interim dividend for the six months ended June 30, 2025 (H1 2024: **HKD 0.25**)[107](index=107&type=chunk) [Audit Committee](index=30&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors with Mr. Wu Jinhua as Chairman, is primarily responsible for reviewing financial information and overseeing financial reporting, risk management, and internal control procedures, and has reviewed the Group's unaudited interim results - The Audit Committee members include three independent non-executive directors: Mr. Wu Jinhua (Chairman), Mr. Wei Hang, and Ms. Xin Honghua[108](index=108&type=chunk) - The primary responsibilities of the Audit Committee are to review the company's financial information and oversee the company's financial reporting system, risk management, and internal control procedures[108](index=108&type=chunk) - The Audit Committee, together with the Board, has reviewed the Group's unaudited condensed consolidated interim results for the six months ended June 30, 2025[108](index=108&type=chunk) [Use of Proceeds from Listing](index=30&type=section&id=Use%20of%20Proceeds%20from%20Listing) Net proceeds from the listing, approximately **HKD 320 million**, have been utilized according to the prospectus and the revised plan announced on December 23, 2024, with **HKD 7 million** utilized as of June 30, 2025, and the remaining **HKD 43 million** expected to be fully used by December 31, 2027 - The total net proceeds from the listing, approximately **HKD 320 million**, have been utilized according to the plan disclosed in the prospectus and the announcement dated December 23, 2024[109](index=109&type=chunk)[110](index=110&type=chunk) Use and Application of Listing Proceeds (as of June 30, 2025) | Item | Revised Allocation (HKD million) | Unutilized as of Dec 31, 2024 (HKD million) | Utilized in H1 2025 (HKD million) | Unutilized as of June 30, 2025 (HKD million) | Expected Timeline | | :--- | :--- | :--- | :--- | :--- | :--- | | Investment in social media marketing and advertising, development of proprietary brands, enrichment of brand portfolio, and strengthening of supply chain management | 174 | 5 | 5 | 174 | Not applicable | | Enrichment of health product brands and product categories | 50 | 0 | 0 | 50 | Not applicable | | Strengthening technology systems and data analytics capabilities | 22 | 3 | 2 | 21 | On or before December 31, 2027 | | Seeking strategic investments in technology companies and O2O service providers | 0 | 0 | 0 | 0 | Not applicable | | Working capital and general corporate purposes | 32 | 0 | 0 | 32 | Not applicable | | Acquisitions and strategic investments/collaborations with brands in health and beauty sectors | 42 | 42 | 0 | 0 | On or before December 31, 2027 | | **Total** | **320** | **50** | **7** | **277** | | - The remaining net proceeds are expected to be fully utilized on or before December 31, 2027[110](index=110&type=chunk) [Acknowledgement](index=32&type=section&id=Acknowledgement) The Board expresses its sincere gratitude to the company's shareholders, customers, management, and employees for their strong support of the Group - The Board extends its heartfelt thanks to the company's shareholders, customers, management, and employees for their strong support of the Group[112](index=112&type=chunk) [Board of Directors](index=32&type=section&id=Board%20of%20Directors) The Board of Directors comprises executive, non-executive, and independent non-executive directors - Executive Directors: Mr. Wang Yong, Mr. Shen Yu, and Ms. Chen Weiwei[113](index=113&type=chunk) - Non-Executive Director: Mr. Nakayama Kuniaki[113](index=113&type=chunk) - Independent Non-Executive Directors: Mr. Wu Jinhua, Mr. Wei Hang, and Ms. Xin Honghua[113](index=113&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 就 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。 Well Link Securities Holdings Limited 立橋證券控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：8350） 截 至2025年6月30日止六個月 中期業績公告 立 橋 證 券 控 股 有 限 公 司（「本公司」）之 董 事（「董 事」）會（「董事會」）欣 然 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 計 業 績。本 公 告 列 載 本 公 司2025年 中 期 報 告 全 文，乃 符 合 香 港 聯 合 交 易 所 有 限 公 司GEM證券上市規則 （「 GEM上市規則」）中 有 關 中 期 業 績 初 步 公 告 附 載 的 資 料 之 要 求。本 公 司 將 於 適當時候發送2025年 中 ...

GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在主板上 市的公司帶有較高投資風險。有意投資的人士應了解投資於該等公司的潛在風險， 並應經過審慎周詳的考慮後方作出投資決定。 CHINA HONGGUANG HOLDINGS LIMITED 中國宏光控股有限公司 (於開曼群島註冊成立的有限公司) 股份代號: 8646 2025 中期報告 香港聯合交易所有限公司（「聯交所」）GEM之特色 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於主板買賣之 證券承受較大的市場波動風險，同時無法保證在GEM買賣的證券會有高流通量的市 場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，對其準確性或完整 性亦不發表任何聲明，並明確表示，概不對因本報告全部或任何部分內容而產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 本報告資料乃遵照聯交所GEM證券上巿規則（「GEM上市規則」）的規定而刊載，旨在 提供有關中國宏光控股有限公司（「本公司」連同附屬公司，統稱「本集團」）的資料； 本公司董事（統稱「董事」，各為一名「董事」）願就本報告共同及個別承擔全部責任。 各董事在作出一切合理查詢 ...