[Company Information and Announcement Statement](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF%E4%B8%8E%E5%85%AC%E5%91%8A%E5%A3%B0%E6%98%8E) This section provides disclaimers and outlines the company's interim results announcement, reviewed by the audit committee [Disclaimer](index=1&type=section&id=%E5%85%8D%E8%B4%A3%E5%A3%B0%E6%98%8E) Hong Kong Exchanges and Clearing Limited makes no representation as to the accuracy or completeness of this announcement and expressly disclaims any liability for losses arising from reliance on its contents - Hong Kong Exchanges and Clearing Limited assumes no responsibility for the accuracy or completeness of this announcement[1](index=1&type=chunk) [Company Overview and Announcement Purpose](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E6%A6%82%E5%86%B5%E4%B8%8E%E5%85%AC%E5%91%8A%E7%9B%AE%E7%9A%84) Nanjing Leads Biolabs Co., Ltd. (the Company) is pleased to announce its unaudited interim condensed consolidated results for the six months ended June 30, 2025, which have been reviewed by the Company's audit committee - The Company announces its unaudited interim condensed consolidated results for the six months ended June 30, 2025[3](index=3&type=chunk) - The interim results have been reviewed by the Company's audit committee[3](index=3&type=chunk) [Business Highlights](index=2&type=section&id=%E4%B8%9A%E5%8A%A1%E6%91%98%E8%A6%81) The company achieved significant pipeline and operational progress, with core product LBL-024 showing promising clinical results and other products advancing [Overall Business Progress](index=2&type=section&id=%E6%95%B4%E4%BD%93%E4%B8%9A%E5%8A%A1%E8%BF%9B%E5%B1%95) The Company was listed on the Stock Exchange on July 25, 2025, and has made significant progress in advancing pipeline candidates and business operations during the reporting period and up to the announcement date - The Company was listed on the Stock Exchange on **July 25, 2025**[4](index=4&type=chunk) - During the reporting period and up to the announcement date, the Company made significant progress in advancing pipeline candidates and business operations[4](index=4&type=chunk) [Core Product Progress](index=2&type=section&id=%E6%A0%B8%E5%BF%83%E4%BA%A7%E5%93%81%E8%BF%9B%E5%B1%95) Core product Opatisumab (LBL-024) has achieved significant progress in both monotherapy and combination therapy clinical trials for various solid tumors, demonstrating encouraging efficacy and safety, especially in the treatment of extra-pulmonary neuroendocrine carcinoma - LBL-024 is the world's first 4-1BB targeted candidate to reach the registrational clinical stage for extra-pulmonary neuroendocrine carcinoma[5](index=5&type=chunk) - In **August 2025**, patient enrollment for the single-arm pivotal registrational clinical trial of LBL-024 monotherapy for extra-pulmonary neuroendocrine carcinoma was completed[5](index=5&type=chunk) - In the Ib/II phase clinical trial of LBL-024 combined with chemotherapy for first-line extra-pulmonary neuroendocrine carcinoma, the **Objective Response Rate (ORR) reached 75.0%** and the **Disease Control Rate (DCR) reached 92.3%**[5](index=5&type=chunk) [Opatisumab (PD-L1/4-1BB Bispecific Antibody LBL-024)](index=2&type=section&id=%E5%A5%A5%E5%B8%95%E6%9B%BF%E8%8B%8F%E7%B1%B3%E5%8D%95%E6%8A%97%EF%BC%88PD-L1%2F4-1BB%E5%8F%8C%E7%89%B9%E5%BC%82%E6%80%A7%E6%8A%97%E4%BD%93LBL-024%EF%BC%89) LBL-024 as monotherapy showed an Objective Response Rate of 33.3% and a Disease Control Rate of 51.1% in patients with advanced extra-pulmonary neuroendocrine carcinoma, with good safety; combination with chemotherapy also demonstrated high Objective Response Rate and Disease Control Rate in extra-pulmonary neuroendocrine carcinoma and small cell lung cancer, with plans to expand to more solid tumor indications - In the Phase I/IIa trial of LBL-024 monotherapy for extra-pulmonary neuroendocrine carcinoma, the **Objective Response Rate (ORR) was 33.3%** and the **Disease Control Rate (DCR) was 51.1%** among 45 evaluable patients[5](index=5&type=chunk) - In the Ib/II phase clinical trial of LBL-024 combined with chemotherapy for first-line extra-pulmonary neuroendocrine carcinoma, the **Objective Response Rate (ORR) was 75.0%** and the **Disease Control Rate (DCR) was 92.3%** among 52 efficacy-evaluable patients[5](index=5&type=chunk) - Phase II studies of LBL-024 combined with standard therapy for cholangiocarcinoma, hepatocellular carcinoma, melanoma, and ovarian cancer are planned to commence in the **third quarter of 2025**, with a Phase II study for triple-negative breast cancer to start in the second half of the year[6](index=6&type=chunk) [Progress of Other Selected Clinical-Stage Products](index=3&type=section&id=%E5%85%B6%E4%BB%96%E9%80%89%E5%AE%9A%E4%B8%B4%E5%BA%8A%E9%98%B6%E6%AE%B5%E4%BA%A7%E5%93%81%E8%BF%9B%E5%B1%95) The Company's multiple clinical-stage products have achieved positive progress, with LBL-034 demonstrating a high Objective Response Rate in multiple myeloma, LBL-007 showing significant combination efficacy in nasopharyngeal carcinoma, LBL-033 achieving disease stabilization in advanced malignant tumors, LBL-047 having submitted an FDA IND application, and LBL-051 entering into a collaboration with Oblenio Bio - In the Phase I/II trial of LBL-034 monotherapy for relapsed/refractory multiple myeloma, the **Objective Response Rate (ORR) reached 82.1%** at the 400-800 μg/kg dose level[7](index=7&type=chunk) - In the Phase II trial of LBL-007 combined with tislelizumab and chemotherapy for nasopharyngeal carcinoma, the **Objective Response Rate (ORR) reached 83.3%** and the **Disease Control Rate (DCR) reached 97.6%**[9](index=9&type=chunk) - LBL-047 has submitted an IND application to the FDA, with approval expected in **August 2025**[10](index=10&type=chunk) - LBL-051 has entered into a collaboration, exclusive option, and license agreement with Oblenio Bio, Inc., targeting an IND submission to the FDA in the **first quarter of 2026**[10](index=10&type=chunk) [LBL-034 (GPRC5D/CD3 Bispecific Antibody)](index=3&type=section&id=LBL-034%EF%BC%88GPRC5D%2FCD3%E5%8F%8C%E7%89%B9%E5%BC%82%E6%80%A7%E6%8A%97%E4%BD%93%EF%BC%89) LBL-034 demonstrated an 82.1% Objective Response Rate in the high-dose group (400-800 μg/kg) in Phase I/II trials for relapsed/refractory multiple myeloma, with good safety; updated data is planned for presentation at the 2025 ASH annual meeting, and Phase II patient enrollment has commenced - In the 400 μg/kg dose group (n=18) of LBL-034, the **Objective Response Rate (ORR) was 77.8%**, the rate of ≥Very Good Partial Response (VGPR) was **61.1%**, and the rate of ≥Complete Response (CR) was **44.4%**[7](index=7&type=chunk) - In the 800 μg/kg dose group (n=10) of LBL-034, the **Objective Response Rate (ORR) reached 90.0%**, with rates of ≥Very Good Partial Response (VGPR) and ≥Complete Response (CR) at **60.0%** and **50.0%**, respectively[7](index=7&type=chunk) - Updated data on LBL-034's comprehensive efficacy, safety, pharmacokinetics/pharmacodynamics, biomarkers, and exposure-response results are planned for presentation at the **2025 American Society of Hematology (ASH) annual meeting**[7](index=7&type=chunk) - The Company enrolled the first patient in the Phase II trial of LBL-034 in **August 2025**[7](index=7&type=chunk) [LBL-007 (LAG3 Monoclonal Antibody)](index=4&type=section&id=LBL-007%EF%BC%88LAG3%E5%8D%95%E5%85%8B%E9%9A%86%E6%8A%97%E4%BD%93%EF%BC%89) In the Phase II trial of LBL-007 combined with tislelizumab and chemotherapy for nasopharyngeal carcinoma, the Objective Response Rate reached 83.3% and the Disease Control Rate reached 97.6% among 42 evaluable patients, with a median Progression-Free Survival of 15.8 months and good safety - In the Phase II trial of LBL-007 combined with tislelizumab and chemotherapy for nasopharyngeal carcinoma, the **Objective Response Rate (ORR) reached 83.3%** (including 3 complete responses) and the **Disease Control Rate (DCR) reached 97.6%**[9](index=9&type=chunk) - The **median Progression-Free Survival (PFS) was 15.8 months**, and the **median Duration of Response (DoR) was 14.7 months**[9](index=9&type=chunk) [LBL-033 (MUC16/CD3 Bispecific Antibody)](index=4&type=section&id=LBL-033%EF%BC%88MUC16%2FCD3%E5%8F%8C%E7%89%B9%E5%BC%82%E6%80%A7%E6%8A%97%E4%BD%93%EF%BC%89) In the Phase I/II trial of LBL-033 monotherapy for advanced malignant tumors, 5 out of 20 evaluable patients achieved disease stabilization, with 1 maintaining stability for over 9 months; the maximum tolerated dose was not reached, and most adverse events were Grade 1 or 2 - In the Phase I/II trial of LBL-033 monotherapy for advanced malignant tumors, **5 out of 20 evaluable patients achieved disease stabilization**, with **1 patient maintaining stability for over 9 months**[9](index=9&type=chunk) - Only one dose-limiting toxicity was observed at the **10 mg/kg dose**, and the maximum tolerated dose was not reached[9](index=9&type=chunk) [LBL-049 (GDF15 Monoclonal Antibody)](index=4&type=section&id=LBL-049%EF%BC%88GDF15%E5%8D%95%E5%85%8B%E9%9A%86%E6%8A%97%E4%BD%93%EF%BC%89) LBL-049 completed Dose Range Finding (DRF) studies and cell line development in August 2025, and the Company is actively seeking global collaborations to enhance its clinical and commercial value - LBL-049 completed Dose Range Finding (DRF) studies and cell line development in **August 2025**[9](index=9&type=chunk) - The Company is actively seeking global partnerships with leading pharmaceutical companies to fully enhance the clinical and commercial value of LBL-049[9](index=9&type=chunk) [LBL-054-ADC (CDH17 ADC)](index=4&type=section&id=LBL-054-ADC%EF%BC%88CDH17%20ADC%EF%BC%89) LBL-054-ADC completed the identification of preclinical candidate (PCC) molecules in July 2025 - LBL-054-ADC completed the identification of preclinical candidate (PCC) molecules in **July 2025**[9](index=9&type=chunk) [LBL-054-TCE (CDH17/CD3 Bispecific Antibody)](index=4&type=section&id=LBL-054-TCE%EF%BC%88CDH17%2FCD3%E5%8F%8C%E7%89%B9%E5%BC%82%E6%80%A7%E6%8A%97%E4%BD%93%EF%BC%89) LBL-054-TCE completed the identification of preclinical candidate (PCC) molecules in July 2025 - LBL-054-TCE completed the identification of preclinical candidate (PCC) molecules in **July 2025**[9](index=9&type=chunk) [LBL-058 (DLL3/CD3 ADC)](index=4&type=section&id=LBL-058%EF%BC%88DLL3%2FCD3%20ADC%EF%BC%89) LBL-058 validated the TCE-ADC platform through in vitro and in vivo studies in July 2025 and is currently undergoing lead compound optimization - LBL-058 validated the TCE-ADC platform through in vitro and in vivo studies in **July 2025**[9](index=9&type=chunk) - Lead compound optimization is currently underway[9](index=9&type=chunk) [LBL-061 (EGFR/PD-L1 ADC)](index=4&type=section&id=LBL-061%EF%BC%88EGFR%2FPD-L1%20ADC%EF%BC%89) LBL-061 entered the IND-enabling stage in July 2025 - LBL-061 entered the IND-enabling stage in **July 2025**[9](index=9&type=chunk) [LBL-047 (Anti-BDCA2/TACI Bispecific Fusion Protein)](index=5&type=section&id=LBL-047%EF%BC%88%E6%8A%97BDCA2%2FTACI%E5%8F%8C%E7%89%B9%E5%BC%82%E6%80%A7%E8%9E%8D%E5%90%88%E8%9B%8B%E7%99%BD%EF%BC%89) LBL-047 has submitted an IND application to the FDA, with approval expected in August 2025, and the Company is actively seeking global collaborations to enhance its clinical and commercial value - LBL-047 has submitted an IND application to the FDA, with approval expected in **August 2025**[10](index=10&type=chunk) - The Company is actively seeking global partnerships with leading pharmaceutical companies to fully enhance the clinical and commercial value of LBL-047[10](index=10&type=chunk) [LBL-051 (CD19/BCMA/CD3 Trispecific Antibody)](index=5&type=section&id=LBL-051%EF%BC%88CD19%2FBCMA%2FCD3%E4%B8%89%E7%89%B9%E5%BC%82%E6%80%A7%E6%8A%97%E4%BD%93%EF%BC%89) In November 2024, the Company entered into a collaboration agreement with Oblenio Bio, Inc. to jointly develop and commercialize LBL-051, targeting an IND submission to the FDA in the first quarter of 2026 - On **November 5, 2024**, the Company entered into a collaboration, exclusive option, and license agreement with Oblenio Bio, Inc. (a newly formed US company by Aditum Bio) to develop and commercialize LBL-051[10](index=10&type=chunk) - Toxicology studies and CMC development for the IND-enabling stage are currently progressing on schedule, targeting an IND submission to the FDA in the **first quarter of 2026**[10](index=10&type=chunk) [Financial Highlights](index=6&type=section&id=%E8%B4%A2%E5%8A%A1%E6%91%98%E8%A6%81) The company's loss for the period decreased, driven by lower administrative expenses despite increased R&D costs for pipeline advancement [Key Financial Metrics](index=6&type=section&id=%E5%85%B3%E9%94%AE%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) For the six months ended June 30, 2025, the Company's loss decreased by 7.8% year-on-year to **RMB 166.4 million**, primarily due to a significant **39.0% decrease in administrative expenses**, though R&D costs increased by **56.9%** due to clinical progress of LBL-024 and LBL-034 Key Financial Metrics for the Six Months Ended June 30 | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Research and development costs | (131,811) | (83,999) | | Administrative expenses | (35,826) | (58,759) | | Fair value change of share repurchase obligation | – | (42,084) | | Loss for the period | (166,393) | (180,399) | - Loss for the period decreased by **RMB 14.0 million (7.8%)** from **RMB 180.4 million** in the same period of 2024 to **RMB 166.4 million** in the same period of 2025[11](index=11&type=chunk) - Research and development costs increased by **56.9%** to **RMB 131.8 million**, primarily due to BLA preparation for LBL-024 and accelerated clinical progress of LBL-024 and LBL-034[11](index=11&type=chunk) - Administrative expenses decreased by **39.0%** to **RMB 35.8 million**, mainly due to a reduction in share-based payment expenses, partially offset by an increase in listing expenses[12](index=12&type=chunk) [Management Discussion and Analysis](index=7&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E5%8F%8A%E5%88%86%E6%9E%90) Management discusses core strategies, product pipeline progress, proprietary technology platforms, and future development plans to address unmet clinical needs [Overview and Core Strategies](index=7&type=section&id=%E6%A6%82%E8%A7%88%E4%B8%8E%E6%A0%B8%E5%BF%83%E7%AD%96%E7%95%A5) The Company is a pioneer in next-generation immuno-oncology therapies, committed to transforming 'cold tumors' into 'hot tumors' by deploying various combination therapeutic strategies, including bispecific antibodies, T-cell engagers (TCEs), and antibody-drug conjugates (ADCs), to address the limitations of PD-1/PD-L1 inhibitors, and has established proprietary technology platforms such as X-body™ and LeadsBody™ - The Company is committed to addressing the limitations of PD-1/PD-L1 inhibitors through a core scientific strategy of transforming 'cold tumors' into 'hot tumors'[13](index=13&type=chunk) - Three major therapeutic strategies are deployed: utilizing agonists to deliver co-stimulatory signals (e.g., 4-1BB) to activate exhausted T cells; leveraging CD3-mediated activation of broad non-tumor-specific T cells; and actively targeting other resistance pathways (e.g., LAG-3)[13](index=13&type=chunk)[14](index=14&type=chunk) - Proprietary technology platforms including X-body™ (validated by LBL-024) and LeadsBody™ (validated by LBL-034 and LBL-033) have been established[13](index=13&type=chunk) [Product Pipeline](index=10&type=section&id=%E4%BA%A7%E5%93%81%E7%AE%A1%E7%BA%BF) The Company has 1 core product, LBL-024, and 13 other candidate drugs, of which 6 have entered clinical stages, covering oncology and autoimmune fields, and continues to advance multiple clinical trials and IND applications - As of **June 30, 2025**, the Company has **1 core product, LBL-024**, and **13 other candidate drugs**, of which **6 have successfully entered clinical stages**[15](index=15&type=chunk) Development Status of Selected Candidate Drugs (As of Announcement Date) | Category | Project | Target (Drug Type) | Line of Therapy/Indication | Current Status/Next Milestone | | :--- | :--- | :--- | :--- | :--- | | Oncology Clinical | LBL-024 | PD-L1/4-1BB (Bispecific Antibody) | Third-line and above extra-pulmonary neuroendocrine carcinoma | Patient enrollment completed in August 2025; BLA submission expected in Q3 2026 | | Oncology Clinical | LBL-034 | GPRC5D/CD3 (Bispecific Antibody) | Fourth-line and above multiple myeloma | Phase II trial patient enrollment initiated in August 2025 | | Oncology Clinical | LBL-007 | LAG3 (Monoclonal Antibody) | First-line nasopharyngeal carcinoma | Phase II trial expected to conclude in Q4 2025; collaboration with BeiGene terminated, global rights recovered | | Oncology Clinical | LBL-033 | MUC16/CD3 (Bispecific Antibody) | Second-line and above solid tumors | Phase I trial expected to conclude in Q3 2025 | | Preclinical | LBL-061 | EGFR/PD-L1 (ADC) | Non-small cell lung cancer, head and neck squamous cell carcinoma, and nasopharyngeal carcinoma | Entered IND-enabling stage in July 2025 | | Autoimmune | LBL-047 | BDCA2/TACI (Fusion Protein) | Autoimmune diseases | IND application submitted to FDA, approval expected in August 2025 | | Autoimmune | LBL-051 | CD19/BCMA/CD3 (Trispecific Antibody) | Autoimmune diseases | IND submission to FDA expected in Q1 2026 | [Business Review](index=12&type=section&id=%E4%B8%9A%E5%8A%A1%E5%9B%9E%E9%A1%B5) The Company continues to advance the development of multiple candidate drugs, with core product LBL-024 demonstrating encouraging efficacy and safety in both monotherapy and combination therapies for extra-pulmonary neuroendocrine carcinoma and small cell lung cancer. LBL-034 showed a high Objective Response Rate in multiple myeloma. Following the termination of the collaboration with BeiGene for LBL-007, the Company has regained its global development rights. Several preclinical products have also entered IND-enabling stages or completed PCC identification - LBL-024, as a core product, has demonstrated potential efficacy and safety in clinical trials for various solid tumors, including extra-pulmonary neuroendocrine carcinoma and small cell lung cancer[28](index=28&type=chunk) - In the Phase I/II trial of LBL-034 for relapsed/refractory multiple myeloma, the high-dose group (400-800 μg/kg) observed an **Objective Response Rate (ORR) of 82.1%**, without additional safety risks[44](index=44&type=chunk) - The collaboration with BeiGene regarding LBL-007 was terminated on **May 18, 2025**, and the Company has regained full global rights to develop, manufacture, and commercialize LBL-007[55](index=55&type=chunk) - Preclinical products such as LBL-061, LBL-054-ADC, and LBL-054-TCE have entered the IND-enabling stage or completed PCC identification[57](index=57&type=chunk)[59](index=59&type=chunk) [Core Product: Opatisumab (LBL-024)](index=12&type=section&id=%E6%A0%B8%E5%BF%83%E4%BA%A7%E5%93%81%EF%BC%9A%E5%A5%A5%E5%B8%95%E6%9B%BF%E8%8B%8F%E7%B1%B3%E5%8D%95%E6%8A%97%20(LBL-024)) LBL-024, as the world's first 4-1BB targeted drug to enter registrational clinical stage, has demonstrated significant efficacy and good safety in both monotherapy and combination chemotherapy for extra-pulmonary neuroendocrine carcinoma, with plans to expand to various solid tumors including non-small cell lung cancer, cholangiocarcinoma, and hepatocellular carcinoma - LBL-024 is the world's first registrational clinical-stage 4-1BB targeted candidate for extra-pulmonary neuroendocrine carcinoma, with patient enrollment for the single-arm pivotal registrational clinical trial completed in **August 2025**[28](index=28&type=chunk) - LBL-024 demonstrated superior efficacy compared to historical benchmarks in previously treated advanced neuroendocrine carcinoma patients, with an **Objective Response Rate (ORR) of 33.3%** and a **Disease Control Rate (DCR) of 51.1%**[30](index=30&type=chunk) - LBL-024 combined with chemotherapy for first-line extra-pulmonary neuroendocrine carcinoma achieved an **Objective Response Rate (ORR) of 75.0%** and a **Disease Control Rate (DCR) of 92.3%**[40](index=40&type=chunk) - LBL-024 combined with chemotherapy for first-line small cell lung cancer achieved an **Objective Response Rate (ORR) of 86.5%** and a **Disease Control Rate (DCR) of 96.2%**[43](index=43&type=chunk) [Monotherapy Efficacy and Safety Data](index=13&type=section&id=%E5%8D%95%E8%8D%AF%E7%96%97%E6%B3%95%E7%96%97%E6%95%88%E4%B8%8E%E5%AE%89%E5%85%A8%E6%80%A7%E6%95%B0%E6%8D%AE) LBL-024 monotherapy in 45 patients with second-line/third-line or above extra-pulmonary neuroendocrine carcinoma showed an Objective Response Rate of 33.3%, a Disease Control Rate of 51.1%, a median Overall Survival of 11.9 months, and no dose-limiting toxicities observed Efficacy Data Observed in Phase I/IIa Trial of LBL-024 Monotherapy for Second-line/Third-line or Above Extra-pulmonary Neuroendocrine Carcinoma (N=45) | Response | Complete Response n (%) | Partial Response n (%) | Stable Disease n (%) | Progressive Disease n (%) | Not Evaluable n (%) | Objective Response Rate n (%) | Disease Control Rate n (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total (n=45) | 3 (6.6)* | 12 (26.7) | 8 (17.8) | 21 (46.7) | 1 (2.2) | 15 (33.3) | 23 (51.1) | - As of **June 3, 2025**, the **median Overall Survival (OS) for the patient population with second-line or above extra-pulmonary neuroendocrine carcinoma was 11.9 months**[34](index=34&type=chunk) - No dose-limiting toxicities were observed at the highest tested dose of **25.0 mg/kg**, and the maximum tolerated dose was not reached; most adverse events were Grade 1 or 2 and manageable[28](index=28&type=chunk) [Combination Therapy Efficacy and Safety Data](index=16&type=section&id=%E8%81%94%E5%90%88%E7%96%97%E6%B3%95%E7%96%97%E6%95%88%E4%B8%8E%E5%AE%89%E5%85%A8%E6%80%A7%E6%95%B0%E6%8D%AE) LBL-024 combined with chemotherapy for first-line extra-pulmonary neuroendocrine carcinoma showed an Objective Response Rate of 75.0% and a Disease Control Rate of 92.3%; for first-line small cell lung cancer, the Objective Response Rate was 86.5% and the Disease Control Rate was 96.2%, with good safety and no dose-limiting toxicities observed - In the Ib/II phase trial of LBL-024 combined with chemotherapy for first-line extra-pulmonary neuroendocrine carcinoma, the **Objective Response Rate (ORR) was 75.0%** and the **Disease Control Rate (DCR) was 92.3%** among 52 efficacy-evaluable patients[40](index=40&type=chunk) - The **Objective Response Rate (ORR) reached 79.2%** in the **15 mg/kg dose group**, and **83.3%** in the Phase II dose optimization stage[40](index=40&type=chunk) - In the Phase II trial of LBL-024 combined with chemotherapy for first-line small cell lung cancer, the **Objective Response Rate (ORR) was 86.5%** and the **Disease Control Rate (DCR) was 96.2%** among 52 efficacy-evaluable patients[43](index=43&type=chunk) - No dose-limiting toxicities were observed during the Phase Ib dose escalation stage, and the maximum tolerated dose was not reached, with no unexpected safety signals identified[43](index=43&type=chunk) [Key Product: LBL-034 (GPRC5D/CD3 Bispecific Antibody)](index=18&type=section&id=%E4%B8%BB%E8%A6%81%E4%BA%A7%E5%93%81%EF%BC%9ALBL-034%20(GPRC5D%2FCD3%E5%8F%8C%E7%89%B9%E5%BC%82%E6%80%A7%E6%8A%97%E4%BD%93)) LBL-034 demonstrated an 82.1% Objective Response Rate in the high-dose group (400-800 μg/kg) in Phase I/II trials for relapsed/refractory multiple myeloma, also performing well in patients previously treated with BCMA CAR-T and other therapies, with manageable safety and the maximum tolerated dose not reached - In the Phase I/II trial of LBL-034 monotherapy for relapsed/refractory multiple myeloma, the **Objective Response Rate (ORR) reached 82.1%** at the 400-800 μg/kg dose level[44](index=44&type=chunk) LBL-034 Efficacy Results (Percentage of Responding Patients) | Dose Group | ORR | | :--- | :--- | | ≤80μg/kg (N=8) | 25.0% | | 200μg/kg (N=7) | 57.2% | | 400μg/kg (N=18) | 77.8% | | 800μg/kg (N=10) | 90.0% | | 1,200μg/kg (N=6) | 83.3% | - LBL-034 also demonstrated good efficacy in patients previously treated with BCMA CAR-T, BCMA-targeted therapies, or autologous stem cell transplantation[47](index=47&type=chunk) - No dose-limiting toxicities were observed at the highest dose of **1,200 μg/kg**, and the maximum tolerated dose was not reached[49](index=49&type=chunk) [Monotherapy Efficacy and Safety Data](index=18&type=section&id=%E5%8D%95%E8%8D%AF%E7%96%97%E6%B3%95%E7%96%97%E6%95%88%E4%B8%8E%E5%AE%89%E5%85%A8%E6%80%A7%E6%95%B0%E6%8D%AE) In patients with relapsed/refractory multiple myeloma, LBL-034's high-dose group (400-800 μg/kg) achieved an Objective Response Rate of up to 90.0%, showing significant clinical benefit even in heavily pre-treated patients, with good safety, most adverse events being Grade 1 or 2, and incidence significantly decreasing in subsequent treatment cycles - In the 400 μg/kg dose group (n=18) of LBL-034, the **Objective Response Rate (ORR) was 77.8%**, the rate of ≥Very Good Partial Response (VGPR) was **61.1%**, and the rate of ≥Complete Response (CR) was **44.4%**[44](index=44&type=chunk) - In the 800 μg/kg dose group (n=10) of LBL-034, the **Objective Response Rate (ORR) reached 90.0%**, with rates of ≥Very Good Partial Response (VGPR) and ≥Complete Response (CR) at **60.0%** and **50.0%**, respectively[44](index=44&type=chunk) - Most treatment-emergent adverse events were Grade 1 or 2, with almost all events occurring in the first cycle, and incidence significantly decreasing in subsequent treatment cycles[51](index=51&type=chunk) [Key Product: LBL-007 (LAG3 Monoclonal Antibody)](index=22&type=section&id=%E4%B8%BB%E8%A6%81%E4%BA%A7%E5%93%81%EF%BC%9ALBL-007%20(LAG3%E5%8D%95%E5%85%8B%E9%9A%86%E6%8A%97%E4%BD%93)) LBL-007 combined with tislelizumab and chemotherapy as first-line treatment for recurrent/metastatic nasopharyngeal carcinoma showed an Objective Response Rate of 83.3% and a Disease Control Rate of 97.6%, with a median Progression-Free Survival of 15.8 months and good safety. The collaboration with BeiGene has been terminated, and the Company has regained global rights to LBL-007 - In the Phase II trial of LBL-007 combined with tislelizumab and chemotherapy for nasopharyngeal carcinoma, the **Objective Response Rate (ORR) reached 83.3%** and the **Disease Control Rate (DCR) reached 97.6%** among 42 patients[55](index=55&type=chunk) - The **median Progression-Free Survival (PFS) was 15.8 months**, and the **median Duration of Response (DoR) was 14.7 months**[55](index=55&type=chunk) - On **May 18, 2025**, the Company's collaboration with BeiGene regarding LBL-007 was terminated, and the Company has regained full global rights to develop, manufacture, and commercialize LBL-007[55](index=55&type=chunk) [Key Product: LBL-033 (MUC16/CD3 Bispecific Antibody)](index=23&type=section&id=%E4%B8%BB%E8%A6%81%E4%BA%A7%E5%93%81%EF%BC%9ALBL-033%20(MUC16%2FCD3%E5%8F%8C%E7%89%B9%E5%BC%82%E6%80%A7%E6%8A%97%E4%BD%93)) In the Phase I/II trial of LBL-033 monotherapy for advanced malignant tumors, 5 out of 20 evaluable patients achieved disease stabilization, with 1 maintaining stability for over 9 months, and good safety, with most common adverse events being Grade 1 or 2 - In the Phase I/II trial of LBL-033 monotherapy for advanced malignant tumors, **5 out of 20 evaluable patients achieved disease stabilization**, with **1 patient maintaining stability for over 9 months**[56](index=56&type=chunk) - Only one dose-limiting toxicity was observed at the **10 mg/kg dose**, and the maximum tolerated dose was not reached; the most common adverse events were Grade 1 or 2[56](index=56&type=chunk) [Other Clinical-Stage Products (LBL-019, LBL-015)](index=23&type=section&id=%E5%85%B6%E4%BB%96%E4%B8%B4%E5%BA%8A%E9%98%B6%E6%AE%B5%E4%BA%A7%E5%93%81%20(LBL-019,%20LBL-015)) LBL-019 (TNFR2 monoclonal antibody) is being developed for solid tumors, promoting T-cell proliferation by activating downstream signaling pathways. LBL-015 (PD-1/TGF-βR2 fusion protein) is a dual-function therapeutic designed to enhance anti-tumor immune responses by dually blocking the PD-1/PD-L1 axis and TGF-β signaling pathway - LBL-019, by binding to TNFR2, preferentially stimulates **CD8+ T cell expansion by over 200%** and increases **CD4+ T cells by 30%**[56](index=56&type=chunk) - LBL-015 is designed as a dual-function therapeutic, capable of effectively binding to PD-1 and TGF-β1, blocking PD-1/PD-L1 and PD-1/PD-L2 interactions, as well as the TGF-β signaling pathway[57](index=57&type=chunk) [Preclinical Stage Products (LBL-061, LBL-054-ADC, LBL-054-TCE, LBL-058, LBL-043, LBL-049)](index=24&type=section&id=%E4%B8%B4%E5%89%8D%E9%98%B6%E6%AE%B5%E4%BA%A7%E5%93%81%20(LBL-061,%20LBL-054-ADC,%20LBL-054-TCE,%20LBL-058,%20LBL-043,%20LBL-049)) Multiple preclinical products have advanced: LBL-061 entered IND-enabling stage; LBL-054-ADC and LBL-054-TCE completed PCC identification; LBL-058 validated the TCE-ADC platform and is undergoing lead compound optimization; LBL-043 and LBL-049 completed DRF studies and cell line development - LBL-061 (EGFR/PD-L1 ADC) entered the IND-enabling stage in **July 2025**[57](index=57&type=chunk) - LBL-054-ADC (CDH17 ADC) completed the identification of preclinical candidate (PCC) molecules in **July 2025**[57](index=57&type=chunk) - LBL-054-TCE (CDH17/CD3 bispecific antibody) completed the identification of preclinical candidate (PCC) molecules in **July 2025**[59](index=59&type=chunk) - LBL-058 (DLL3/CD3 ADC) validated the TCE-ADC platform through in vitro and in vivo studies in **July 2025** and is currently undergoing lead compound optimization[58](index=58&type=chunk) - LBL-049 (GDF15 monoclonal antibody) completed Dose Range Finding (DRF) studies and cell line development in **August 2025**[61](index=61&type=chunk) [Autoimmune Products (LBL-051, LBL-047)](index=26&type=section&id=%E8%87%AA%E8%BA%AB%E5%85%8D%E7%96%AB%E4%BA%A7%E5%93%81%20(LBL-051,%20LBL-047)) LBL-051 (CD19/BCMA/CD3 trispecific antibody) aims to treat B-cell and autoantibody-driven autoimmune diseases and has partnered with Oblenio Bio. LBL-047 (anti-BDCA2/TACI bispecific fusion protein) has submitted an IND application to the FDA, with approval expected in August 2025, for the treatment of autoimmune diseases such as systemic lupus erythematosus - LBL-051 (CD19/BCMA/CD3 trispecific antibody) is designed to treat B-cell and autoantibody-driven autoimmune diseases and has entered into a collaboration agreement with Oblenio Bio, Inc.[61](index=61&type=chunk) - LBL-047 (anti-BDCA2/TACI bispecific fusion protein) has submitted an IND application to the FDA, with approval expected in **August 2025**, for the treatment of systemic lupus erythematosus, cutaneous lupus erythematosus, IgA nephropathy, and scleroderma[61](index=61&type=chunk) [Proprietary Technology Platforms](index=27&type=section&id=%E4%B8%93%E6%9C%89%E6%8A%80%E6%9C%AF%E5%B9%B3%E5%8F%B0) The Company has developed three proprietary technology platforms: LeadsBody™ (CD3 T-cell engager), X-body™ (4-1BB engager), and TOPiKinectics™ (ADC), utilizing advanced antibody engineering to achieve highly specific, low-toxicity, and efficient drug design to address unmet clinical needs - The Company has developed the LeadsBody™ platform (CD3 T-cell engager platform), X-body™ platform (4-1BB engager platform), and TOPiKinectics™ platform (ADC platform)[62](index=62&type=chunk) - The LeadsBody™ platform optimizes the ratio and affinity of tumor-associated antigens to the CD3 binding domain, enabling conditional T-cell redirection and activation, thereby reducing off-target toxicity[62](index=62&type=chunk) - The X-body™ platform designs bispecific antibodies with a 2:2 structure, balancing affinity to achieve conditional 4-1BB activation within the tumor microenvironment, thereby reducing systemic toxicity[66](index=66&type=chunk) - The TOPiKinectics™-ADC platform incorporates innovations such as Fc-silent antibodies, stable conjugates, cleavable/hydrophilic linkers, and Exatecan, aiming to improve therapeutic index, stability, and pharmacokinetic properties[66](index=66&type=chunk) [LeadsBody™ Platform (CD3 T-cell Engager Platform)](index=27&type=section&id=LeadsBody%E2%84%A2%E5%B9%B3%E5%8F%B0%20(CD3%20T-cell%20engager%E5%B9%B3%E5%8F%B0)) The LeadsBody™ platform employs diverse molecular designs to optimize the ratio and affinity of tumor-associated antigens to the CD3 binding domain, enabling conditional T-cell redirection and activation, effectively killing target cells while reducing cytokine secretion, and has successfully developed LBL-034 and LBL-033 - The LeadsBody™ platform allows for diverse modifications to the molecular design of CD3-targeting bispecific antibodies, including controlling binding strength, fine-tuning CD3 affinity, conditional T-cell redirection and activation mechanisms, and different spatial structures[62](index=62&type=chunk) - Advantages of this platform include optimizing the ratio and affinity of antigen to CD3 binding domains to reduce off-target toxicity, structural optimization to minimize cytokine secretion, and demonstrating durable anti-tumor effects in both in vitro and in vivo studies[62](index=62&type=chunk) - Through the LeadsBody™ platform, LBL-034 (GPRC5D/CD3 bispecific antibody) and LBL-033 (MUC16/CD3 bispecific antibody) have been successfully developed[62](index=62&type=chunk) [X-body™ Platform (4-1BB Engager Platform)](index=28&type=section&id=X-body%E2%84%A2%E5%B9%B3%E5%8F%B0%20(4-1BB%20engager%E5%B9%B3%E5%8F%B0)) The X-body™ platform utilizes advanced antibody engineering to design bispecific antibodies with a 2:2 structure, balancing the affinity between tumor-associated antigens and 4-1BB to achieve conditional activation of 4-1BB receptors in the tumor microenvironment, enhancing immune response while reducing systemic toxicity, and has successfully developed core product LBL-024 - The X-body™ platform utilizes advanced antibody engineering to create differentiated bispecific antibodies with a 2:2 structure, featuring high yield, high purity, and excellent developability[66](index=66&type=chunk) - This platform can balance the affinity between tumor-associated antigens and 4-1BB, promoting 4-1BB receptor cross-linking and activation only when bound to antigens at the tumor site, thereby reducing systemic toxicity[66](index=66&type=chunk) - Through the X-body™ platform, Opatisumab (4-1BB/PD-L1 bispecific antibody LBL-024) has been successfully developed[66](index=66&type=chunk) [TOPiKinectics™ Platform (ADC Platform)](index=28&type=section&id=TOPiKinectics%E2%84%A2%E5%B9%B3%E5%8F%B0%20(ADC%E5%B9%B3%E5%8F%B0)) The TOPiKinectics™-ADC platform aims to overcome the resistance and safety challenges of existing ADCs through innovations such as Fc-silent antibodies, stable conjugates, cleavable/hydrophilic linkers, and more potent topoisomerase I inhibitor Exatecan, enhancing therapeutic index, stability, and pharmacokinetic properties - The TOPiKinectics™-ADC platform aims to overcome the resistance of existing ADCs and improve patients' quality of life[66](index=66&type=chunk) - This platform incorporates several key innovations, including Fc-silent antibodies, stable conjugates, cleavable/hydrophilic linkers, and Exatecan (a more potent topoisomerase I inhibitor with lower sensitivity to multi-drug resistance)[66](index=66&type=chunk) - TOPiKinectics™-ADC features an improved therapeutic index, excellent stability, and enhanced pharmacokinetic properties[66](index=66&type=chunk) [Future Developments](index=29&type=section&id=%E6%9C%AA%E6%9D%A5%E5%8F%91%E5%B1%95) The Company will continue to advance its product pipeline, with a particular focus on rapidly expanding the indications for core product LBL-024. It will adhere to an asset-light strategy, combining its own pilot production facilities with CDMO collaborations, and actively seek global partnerships to maximize product market value, with future plans to establish an internal sales team in China and strengthen global business development capabilities - The Company will continue to advance its preclinical assets and clinical-stage products, with a particular focus on rapidly expanding the indications for core product LBL-024[67](index=67&type=chunk) - It will adhere to an asset-light strategy, combining its own GMP-compliant pilot production facilities with collaborations with reputable Contract Development and Manufacturing Organizations (CDMOs)[67](index=67&type=chunk)[68](index=68&type=chunk) - It will continue to focus on forging partnerships with leading global industry players to leverage their international clinical development capabilities, distribution channels, and sales and marketing capabilities[69](index=69&type=chunk) - In the long term, plans include establishing an internal sales and marketing team in the domestic Chinese market and potentially initiating selected clinical trials in the United States to generate high-quality data[69](index=69&type=chunk) [Financial Review](index=30&type=section&id=%E8%B4%A2%E5%8A%A1%E5%9B%9E%E9%A1%B5) A detailed review of financial performance, including revenue, expenses, loss, capital structure, and employee-related costs [Revenue](index=30&type=section&id=%E6%94%B6%E5%85%A5) For the six months ended June 30, 2025 and 2024, the Group recorded zero revenue - For the six months ended June 30, 2024 and 2025, the Group recorded **zero revenue**[71](index=71&type=chunk) [Other Income and Gains](index=30&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A) For the six months ended June 30, 2025, other income and gains amounted to **RMB 5.6 million**, a slight decrease from **RMB 5.8 million** in the same period of 2024, primarily due to reduced government grants and the absence of net foreign exchange gains, though bank interest income increased Other Income and Gains (For the Six Months Ended June 30) | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Government grants related to income | 164 | 520 | | Bank interest income | 5,425 | 4,402 | | Net foreign exchange gains | – | 914 | | **Total** | **5,589** | **5,836** | - Other income and gains decreased from **RMB 5.8 million** in the same period of 2024 to **RMB 5.6 million** in the same period of 2025[73](index=73&type=chunk) [Research and Development Costs](index=30&type=section&id=%E7%A0%94%E5%8F%91%E6%88%90%E6%9C%AC) For the six months ended June 30, 2025, research and development costs significantly increased by **56.9%** year-on-year to **RMB 131.8 million**, primarily due to BLA preparation for LBL-024 and accelerated clinical progress of LBL-024 and LBL-034 Research and Development Costs (For the Six Months Ended June 30) | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Clinical trial expenses | 33,877 | 17,147 | | Staff costs | 28,936 | 30,797 | | Preclinical and CMC expenses | 41,395 | 13,268 | | Depreciation and amortization expenses | 9,214 | 11,862 | | Materials and consumables costs | 8,949 | 3,120 | | Share-based payment expenses | 1,289 | 1,058 | | Others | 8,151 | 6,747 | | **Total** | **131,811** | **83,999** | - Research and development costs increased by **56.9%** from **RMB 84.0 million** in the same period of 2024 to **RMB 131.8 million** in the same period of 2025[76](index=76&type=chunk) - The primary reasons for the increase include higher CMC development milestone expenses (related to LBL-024 BLA preparation) and increased clinical development expenses (due to accelerated patient enrollment and clinical progress for LBL-024 and LBL-034)[76](index=76&type=chunk) [Administrative Expenses](index=31&type=section&id=%E8%A1%8C%E6%94%BF%E5%BC%80%E6%94%AF) For the six months ended June 30, 2025, administrative expenses decreased by **39.0%** year-on-year to **RMB 35.8 million**, primarily due to a reduction in share-based payment expenses, partially offset by an increase in listing expenses Administrative Expenses (For the Six Months Ended June 30) | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Professional service fees | 14,755 | 6,687 | | Staff costs | 11,864 | 10,318 | | Share-based payment expenses | 3,749 | 36,720 | | Depreciation and amortization expenses | 1,676 | 1,661 | | General office expenses | 1,445 | 2,088 | | Lease charges | 222 | 186 | | Others | 2,115 | 1,099 | | **Total** | **35,826** | **58,759** | - Administrative expenses decreased by **39.0%** from **RMB 58.8 million** in the same period of 2024 to **RMB 35.8 million** in the same period of 2025[77](index=77&type=chunk) - The primary reason for the decrease was a reduction in share-based payment expenses, partially offset by an increase in listing expenses incurred in the first half of 2025[77](index=77&type=chunk) [Finance Costs](index=32&type=section&id=%E8%9E%8D%E8%B5%84%E6%88%90%E6%9C%AC) For the six months ended June 30, 2025, finance costs increased to **RMB 3.6 million**, primarily due to a **RMB 1.0 million** increase in interest expenses resulting from a moderate growth in bank borrowings - Finance costs increased from **RMB 2.4 million** in the same period of 2024 to **RMB 3.6 million** in the same period of 2025[78](index=78&type=chunk) - Primarily due to a **RMB 1.0 million** increase in interest expenses resulting from a moderate growth in bank borrowings[78](index=78&type=chunk) [Income Tax Expense](index=32&type=section&id=%E6%89%80%E5%BE%97%E7%A8%8E%E5%BC%80%E6%94%AF) For the six months ended June 30, 2025 and 2024, the Group recognized no income tax expense, as neither the Company nor its subsidiaries had estimated taxable profits - For the six months ended June 30, 2024 and 2025, the Group recognized **no income tax expense**[79](index=79&type=chunk) [Loss for the Period](index=32&type=section&id=%E6%9C%9F%E5%86%85%E4%BA%8F%E6%8D%9F) For the six months ended June 30, 2025, the Group's loss decreased from **RMB 180.4 million** in the same period of 2024 to **RMB 166.4 million**, primarily due to the combined impact of increased research and development costs and decreased administrative expenses - The Group's loss decreased from **RMB 180.4 million** in the same period of 2024 to **RMB 166.4 million** in the same period of 2025[80](index=80&type=chunk) [Non-IFRS Measures](index=32&type=section&id=%E9%9D%9E%E5%9B%BD%E9%99%85%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A%E5%87%86%E5%88%99%E8%AE%A1%E9%87%8F) The Company uses adjusted loss as a non-IFRS measure to eliminate the impact of fair value changes in share repurchase obligations, share-based payment expenses, and listing expenses, providing investors with a clearer comparison of operating performance. As of June 30, 2025, the adjusted loss was **RMB 148.6 million**, an increase from **RMB 94.4 million** in the same period of 2024 - The Company uses adjusted loss as a non-IFRS measure to eliminate the impact of fair value changes in share repurchase obligations, share-based payment expenses, and listing expenses[81](index=81&type=chunk) Reconciliation of Loss to Adjusted Loss (For the Six Months Ended June 30) | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Loss for the period | (166,393) | (180,399) | | Add: Fair value change of share repurchase obligation | – | 42,084 | | Add: Share-based payment expenses | 5,038 | 37,778 | | Add: Listing expenses | 12,796 | 6,095 | | **Adjusted loss for the period** | **(148,559)** | **(94,442)** | [Significant Acquisitions and Disposals](index=33&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B4%AD%E5%8F%8A%E5%87%BA%E5%94%AE%E4%BA%8B%E9%A1%B9) During the reporting period, the Group did not undertake any significant acquisitions or disposals of subsidiaries, associates, or joint ventures - During the reporting period, the Group did not undertake any significant acquisitions or disposals of subsidiaries, associates, or joint ventures[85](index=85&type=chunk) [Capital Structure, Liquidity and Financial Resources](index=33&type=section&id=%E8%B5%84%E6%9C%AC%E7%BB%93%E6%9E%84%E3%80%81%E6%B5%81%E5%8A%A8%E8%B5%84%E9%87%91%E5%8F%8A%E8%B4%A2%E5%8A%A1%E8%B5%84%E6%BA%90) As of June 30, 2025, the Company's cash and cash equivalents and financial assets at fair value through profit or loss totaled **RMB 451.7 million**, a decrease from **RMB 538.7 million** at the end of 2024, primarily due to cash outflows for R&D, operations, and listing expenses, partially offset by new bank borrowings. The Company's net current assets decreased from **RMB 197.97 million** at the end of 2024 to **RMB 36.78 million** - As of **June 30, 2025**, cash and cash equivalents and financial assets at fair value through profit or loss totaled **RMB 451.7 million**, a decrease from **RMB 538.7 million** as of December 31, 2024[86](index=86&type=chunk) - Net current assets decreased from **RMB 197.97 million** as of December 31, 2024, to **RMB 36.78 million** as of June 30, 2025[116](index=116&type=chunk) - As of **June 30, 2025**, the Company had unutilized bank loan facilities of approximately **RMB 150.0 million**[87](index=87&type=chunk) [Gearing Ratio](index=33&type=section&id=%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E6%AF%94%E7%8E%87) As of June 30, 2025, the Company was in a net cash position, thus the gearing ratio is not applicable - As of **June 30, 2025**, the Company was in a net cash position, thus the gearing ratio is not applicable[89](index=89&type=chunk) [Indebtedness](index=33&type=section&id=%E5%80%BA%E5%8A%A1) As of June 30, 2025, the Company's unsecured bank borrowings increased to **RMB 280.2 million**, with all borrowings bearing fixed interest rates ranging from **2.4% to 3.1%**. Lease liabilities increased to **RMB 19.4 million**, primarily due to new lease contracts and renewed leases - As of **June 30, 2025**, unsecured bank borrowings amounted to **RMB 280.2 million**, an increase from **RMB 255.2 million** as of December 31, 2024[90](index=90&type=chunk) - All bank borrowings bear fixed interest rates ranging from **2.4% to 3.1%**[90](index=90&type=chunk) - Lease liabilities increased from **RMB 11.3 million** as of December 31, 2024, to **RMB 19.4 million** as of June 30, 2025, primarily due to new lease contracts and renewed leases[91](index=91&type=chunk) [Capital Commitments](index=34&type=section&id=%E8%B5%84%E6%9C%AC%E6%89%BF%E8%AF%BA) As of June 30, 2025, the Company's contracted but unprovided capital commitments amounted to **RMB 0.7 million**, an increase from **RMB 0.1 million** at the end of 2024, primarily for the acquisition of property, plant and equipment, and other intangible assets - As of **June 30, 2025**, contracted but unprovided capital commitments amounted to **RMB 0.7 million**, an increase from **RMB 0.1 million** as of December 31, 2024[92](index=92&type=chunk) [Contingent Liabilities](index=34&type=section&id=%E6%88%96%E6%9C%89%E8%B4%9F%E5%80%BA) As of June 30, 2025, the Group had no contingent liabilities - As of **June 30, 2025**, the Group had **no contingent liabilities**[93](index=93&type=chunk) [Pledge of Assets](index=34&type=section&id=%E8%B5%84%E4%BA%A7%E8%B4%A8%E6%8A%BC) As of June 30, 2025, the Group had no pledge of assets - As of **June 30, 2025**, the Group had **no pledge of assets**[94](index=94&type=chunk) [Foreign Exchange Risk](index=34&type=section&id=%E5%A4%96%E6%B1%87%E9%A3%8E%E9%99%A9) The Group's financial assets and liabilities are exposed to foreign currency risk, with no current foreign currency hedging policy, but management monitors and considers hedging significant foreign currency risks when necessary - Certain financial assets and liabilities of the Group are denominated in foreign currencies of the respective Group entities, exposing them to foreign currency risk[95](index=95&type=chunk) - The Company currently has no foreign currency hedging policy, but management monitors foreign exchange risk and will consider hedging significant foreign currency risks when necessary[95](index=95&type=chunk) [Significant Investments Held](index=34&type=section&id=%E6%89%80%E6%8C%81%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B5%84) As of June 30, 2025, the Group held no significant investments - As of **June 30, 2025**, the Group held **no significant investments**[96](index=96&type=chunk) [Employees and Remuneration Policy](index=34&type=section&id=%E9%9B%87%E5%91%98%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group had **192 employees**, with total employee benefit expenses of **RMB 49.0 million**, a year-on-year decrease primarily due to reduced share-based payment expenses. The Company offers competitive salaries, bonuses, and share incentives, along with continuous education and training programs for employees - As of **June 30, 2025**, the Group had a total of **192 employees**[97](index=97&type=chunk) - Total employee benefit expenses for the six months ended June 30, 2025, amounted to **RMB 49.0 million**, a decrease from **RMB 82.0 million** in the same period of 2024, primarily due to a reduction in share-based payment expenses[97](index=97&type=chunk) - The Company provides employees with competitive salaries, bonuses, and share-based payment remuneration, and has made contributions to social security insurance funds and housing provident funds in accordance with applicable laws[98](index=98&type=chunk) [Corporate Governance](index=35&type=section&id=%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB) The company maintains compliance with corporate governance standards, with specific disclosures on board structure and securities trading [Compliance with Corporate Governance Code](index=35&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%88%99) The Company has complied with the Corporate Governance Code since its listing date, with one deviation where Dr. Kang serves as both Chairman and CEO. The Board believes this arrangement ensures consistent internal leadership and decision-making efficiency and will review it in due course - Since the listing date and up to the date of this announcement, the Board believes the Company has complied with all applicable code provisions of the Corporate Governance Code, except for a deviation from code provision C.2.1 (roles of Chairman and Chief Executive should be separate)[100](index=100&type=chunk) - Currently, Dr. Kang serves as both Chairman of the Board and Chief Executive Officer, an arrangement the Board believes ensures consistent internal leadership for the Group, leading to more effective and efficient overall strategic planning[101](index=101&type=chunk) [Compliance with Model Code](index=35&type=section&id=%E9%81%B5%E5%AE%88%E6%A0%87%E5%87%86%E5%AE%88%E5%88%99) The Company has adopted a code of conduct for securities transactions no less exacting than the Model Code. Since the listing date, all Directors and Supervisors have confirmed compliance with this code, and the Company has not identified any non-compliance by employees - The Company has adopted a code of conduct for securities transactions by Directors, Supervisors, and employees, with terms no less exacting than the required standards set out in the Model Code[103](index=103&type=chunk) - Since the listing date and up to the date of this announcement, all Directors and Supervisors have individually confirmed compliance with the Company's code of conduct for securities transactions by Directors, Supervisors, and employees[104](index=104&type=chunk) [Other Corporate Changes](index=36&type=section&id=%E5%85%B6%E4%BB%96%E5%85%AC%E5%8F%B8%E5%8F%98%E5%8A%A8) Mr. Du Yilong was appointed as the Lead Independent Non-executive Director, and Ms. Du Jiliu was appointed as a member of the Nomination Committee, both effective from the listing date - Mr. Du Yilong has been appointed as the Lead Independent Non-executive Director of the Company, effective from the listing date[105](index=105&type=chunk) - Independent Non-executive Director Mr. Du Yilong is no longer a member of the Nomination Committee; Independent Non-executive Director Ms. Du Jiliu has been appointed as a member of the Nomination Committee, effective from the listing date[105](index=105&type=chunk) [Other Important Information](index=36&type=section&id=%E5%85%B6%E4%BB%96%E9%87%8D%E8%A6%81%E4%BF%A1%E6%81%AF) Key information on global offering proceeds, audit committee review, significant post-reporting events, and interim dividend policy [Use of Proceeds](index=36&type=section&id=%E6%89%80%E5%BE%97%E6%AC%BE%E9%A1%B9%E7%94%A8%E9%80%94) The Company was listed on July 25, 2025, with net proceeds from the global offering (after accounting for the over-allotment option and full exercise of the greenshoe option) of approximately **HKD 1,363.1 million**, to be used for purposes outlined in the prospectus. As of the end of the reporting period, the net proceeds had not yet been utilized - Net proceeds from the global offering (after accounting for the over-allotment option and full exercise of the greenshoe option) of approximately **HKD 1,363.1 million** will be used for the purposes set out in the prospectus[107](index=107&type=chunk) - As of **June 30, 2025**, the Company had not yet been listed on the Stock Exchange, thus the net proceeds from the global offering were not utilized during the reporting period[107](index=107&type=chunk) [Audit Committee](index=37&type=section&id=%E5%AE%A1%E6%A0%B8%E5%A7%94%E5%91%98%E4%BC%9A) The Audit Committee, comprising three members, has reviewed the accounting principles and practices adopted by the Group and discussed internal controls, risk management, and financial reporting matters with management, concluding that the interim results comply with relevant accounting standards and are appropriately disclosed - The Audit Committee comprises three members: Ms. Du Jiliu (Chairperson), Dr. Chen Renhai, and Mr. Du Yilong[108](index=108&type=chunk) - The Audit Committee has reviewed the interim financial results for the six months ended June 30, 2025, and is of the opinion that they comply with relevant accounting standards, rules, and regulations, and have been appropriately disclosed[108](index=108&type=chunk) [Events After Reporting Period](index=37&type=section&id=%E6%8A%A5%E5%91%8A%E6%9C%9F%E9%97%B4%E5%90%8E%E9%87%8D%E5%A4%A7%E4%BA%8B%E4%BB%B6) After the reporting period, the Company's shares were listed on the Main Board of the Stock Exchange on July 25, 2025, with net proceeds from the global offering of approximately **HKD 1,179.3 million**. On August 6, 2025, the over-allotment option was fully exercised, generating additional net proceeds of approximately **HKD 183.8 million**. Furthermore, LBL-024 completed patient enrollment, preclinical products LBL-061, LBL-054-ADC, and LBL-054-TCE advanced to IND-enabling stages, and LBL-047 received FDA IND approval - On **July 25, 2025**, the Company's shares were listed on the Main Board of the Stock Exchange, with net proceeds from the global offering of approximately **HKD 1,179.3 million**[109](index=109&type=chunk) - On **August 6, 2025**, the over-allotment option was fully exercised, and the Company received additional net proceeds of approximately **HKD 183.8 million** from the issuance of over-allotted shares[109](index=109&type=chunk) - In **August 2025**, patient enrollment for the registrational single-arm pivotal clinical trial of LBL-024 for extra-pulmonary neuroendocrine carcinoma was completed[110](index=110&type=chunk) - In **July and August 2025**, preclinical products such as LBL-061, LBL-054-ADC, and LBL-054-TCE advanced to the IND-enabling stage, and LBL-047 received FDA IND approval[110](index=110&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=37&type=section&id=%E8%B4%AD%E4%B9%B0%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B5%8E%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AF%81%E5%88%B8) As the Company was not listed during the reporting period, relevant disclosures are not applicable. Since the listing date, neither the Company nor any of its subsidiaries has purchased, sold, or redeemed any of its listed securities - As the Company was not listed on the Stock Exchange during the reporting period, relevant disclosures are not applicable[111](index=111&type=chunk) - Since the listing date and up to the date of this announcement, neither the Company nor any of its subsidiaries has purchased, sold, or redeemed any of the Company's securities listed on the Stock Exchange[111](index=111&type=chunk) [Interim Dividend](index=38&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[112](index=112&type=chunk) [Publication of Interim Results and Interim Report](index=38&type=section&id=%E5%88%8A%E5%8F%91%E4%B8%AD%E6%9C%9F%E4%B8%9A%E7%BB%A9%E5%8F%8A%E4%B8%AD%E6%9C%9F%E6%8A%A5%E5%91%8A) This interim results announcement has been published on the Stock Exchange website and the Company's website. The interim report will be dispatched to shareholders and published on the Stock Exchange and Company websites in due course - This interim results announcement is published on the Stock Exchange website (www.hkexnews.hk) and the Company's website (www.leadsbiolabs.com)[113](index=113&type=chunk) - The Company's interim report for the six months ended June 30, 2025, will be dispatched to the Company's shareholders and published on the Stock Exchange and the Company's website in due course[113](index=113&type=chunk) [Acknowledgement](index=38&type=section&id=%E8%87%B4%E8%B0%A2) The Board, on behalf of the Company, sincerely thanks shareholders and business partners for their trust and support, and employees for their tireless efforts and dedication - The Board sincerely thanks shareholders and business partners for their continuous trust and support, and employees for their tireless efforts and dedication[114](index=114&type=chunk) [Financial Statements](index=39&type=section&id=%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) Presents the interim condensed consolidated financial statements, including profit or loss, financial position, and explanatory notes [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=39&type=section&id=%E4%B8%AD%E6%9C%9F%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E6%8D%9F%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the Company recorded a loss for the period of **RMB 166.4 million**, a narrowing from **RMB 180.4 million** in the prior year's corresponding period, primarily due to the combined impact of increased research and development costs and decreased administrative expenses Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the Six Months Ended June 30) | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Other income and gains | 5,589 | 5,836 | | Research and development costs | (131,811) | (83,999) | | Administrative expenses | (35,826) | (58,759) | | Fair value gains on financial assets at fair value through profit or loss | 470 | 1,006 | | Finance costs | (3,632) | (2,399) | | Other expenses | (1,183) | – | | Fair value change of share repurchase obligation | – | (42,084) | | Loss before tax | (166,393) | (180,399) | | Income tax expense | – | – | | **Loss for the period** | **(166,393)** | **(180,399)** | | Other comprehensive income for the period (Exchange differences on translation of overseas operations) | 666 | 12 | | **Total comprehensive loss for the period** | **(165,727)** | **(180,387)** | | Loss per share (basic and diluted) | (1.06) | (1.22) | - Loss for the period was **RMB 166,393 thousand**, a decrease from **RMB 180,399 thousand** in the same period of 2024[115](index=115&type=chunk) - Basic and diluted loss per share was **RMB (1.06)**, an improvement from **RMB (1.22)** in the same period of 2024[115](index=115&type=chunk) [Interim Condensed Consolidated Statement of Financial Position](index=40&type=section&id=%E4%B8%AD%E6%9C%9F%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5%E8%A1%A8) As of June 30, 2025, the Company

[Report Cover and Legal Disclaimers](index=1&type=section&id=%E6%8A%A5%E5%91%8A%E5%B0%81%E9%9D%A2%E5%8F%8A%E6%B3%95%E5%BE%8B%E5%A3%B0%E6%98%8E) This section presents the report cover, GEM listing features, disclaimers, and directors' responsibilities regarding the report's content [Report Cover](index=1&type=section&id=%E6%8A%A5%E5%91%8A%E5%B0%81%E9%9D%A2) The report pertains to Top Standard Corporation, stock code 8510, and is for the year 2025 - The report pertains to Top Standard Corporation, stock code **8510**, and is for the year **2025**[1](index=1&type=chunk) [GEM Listing Characteristics and Disclaimer](index=2&type=section&id=GEM%E4%B8%8A%E5%B8%82%E7%89%B9%E8%89%B2%E5%8F%8A%E5%85%8D%E8%B4%A3%E5%A3%B0%E6%98%8E) The GEM market provides a listing platform for small and medium-sized enterprises with higher investment risks, potential market volatility, and low liquidity, with HKEX and SEHK disclaiming responsibility for this report - The GEM market is positioned for small and medium-sized enterprises, entailing higher investment risks, potential for significant market fluctuations, and low liquidity risks[2](index=2&type=chunk) - Hong Kong Exchanges and Clearing Limited and the Stock Exchange of Hong Kong Limited bear no responsibility for the report's content, make no representation, and accept no liability for any loss[2](index=2&type=chunk) [Directors' Responsibility Statement](index=2&type=section&id=%E8%91%A3%E4%BA%8B%E8%B4%A3%E4%BB%BB%E5%A3%B0%E6%98%8E) The company's directors collectively and individually assume full responsibility for the report's information, confirming its accuracy, completeness, and absence of misleading or fraudulent content or omissions - The company's directors collectively and individually assume full responsibility for the information in this report[3](index=3&type=chunk) - The directors confirm that the information in the report is accurate, complete, not misleading or fraudulent in all material aspects, and free from omissions[3](index=3&type=chunk) [Financial Highlights](index=3&type=section&id=%E8%B4%A2%E5%8A%A1%E6%91%98%E8%A6%81) This section provides a concise overview of the group's key financial performance indicators [Financial Highlights](index=3&type=section&id=%E8%B4%A2%E5%8A%A1%E6%91%98%E8%A6%81) For the six months ended June 30, 2025, the Group's revenue significantly increased by 108.0% to approximately HKD 10.4 million, while loss attributable to owners narrowed to approximately HKD 0.6 million Financial Highlights for the Six Months Ended June 30, 2025 | Indicator | 2025 (HKD) | 2024 (HKD) | Year-on-year change | | :--- | :--- | :--- | :--- | | Unaudited Revenue | 10,400,000 | 5,000,000 | Increased by 108.0% | | Unaudited Loss Attributable to Owners of the Company | (600,000) | (3,100,000) | Loss narrowed | [Condensed Consolidated Financial Statements](index=4&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents the Group's condensed consolidated statements of profit or loss, financial position, changes in equity, and cash flows [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=4&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E6%8D%9F%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E5%85%A5%E8%A1%A8) For the six months ended June 30, 2025, the Group's revenue grew significantly, and while still reporting a loss, it substantially narrowed compared to the prior year, with basic loss per share also decreasing Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the Six Months Ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Revenue | 10,385 | 4,982 | Increased by 108.47% | | Loss before tax | (290) | (4,045) | Loss narrowed | | Loss for the period | (290) | (4,045) | Loss narrowed | | Loss for the period attributable to owners of the Company | (558) | (3,132) | Loss narrowed | | Basic and diluted loss per share (HK cents) | (0.28) | (1.89) | Loss narrowed | [Condensed Consolidated Statement of Financial Position](index=6&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5%E8%A1%A8) As of June 30, 2025, the Group's non-current and current assets decreased, while net current liabilities and net liabilities increased, indicating ongoing financial challenges with negative shareholders' equity Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Non-current assets | 1,444 | 1,817 | Decreased by 20.53% | | Current assets | 4,539 | 4,595 | Decreased by 1.22% | | Current liabilities | 20,477 | 23,068 | Decreased by 11.23% | | Net current liabilities | (15,938) | (18,473) | Deficit narrowed | | Net liabilities | (20,850) | (20,491) | Deficit widened | | Equity attributable to owners of the Company | (12,154) | (11,527) | Deficit widened | [Condensed Consolidated Statement of Changes in Equity](index=8&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E6%9D%83%E7%9B%8A%E5%8F%98%E5%8A%A8%E8%A1%A8) For the six months ended June 30, 2025, the loss attributable to owners of the Company was HKD 558 thousand, leading to an increase in accumulated losses and a widened total deficit of HKD 20,850 thousand Condensed Consolidated Statement of Changes in Equity (For the Six Months Ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Loss for the period attributable to owners of the Company | (558) | (3,132) | Loss narrowed | | Accumulated losses | (131,826) | (121,467) | Loss widened | | Total deficit | (20,850) | (8,269) | Deficit widened | [Condensed Consolidated Statement of Cash Flows](index=9&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the six months ended June 30, 2025, net cash outflow from operating activities was HKD 470 thousand, net cash inflow from investing activities was HKD 6 thousand, and net cash outflow from financing activities was HKD 1,114 thousand, resulting in a decrease in cash and cash equivalents to HKD 922 thousand at period-end Condensed Consolidated Statement of Cash Flows (For the Six Months Ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Net cash (used in) / generated from operating activities | (470) | 1,139 | Changed from inflow to outflow | | Net cash (used in) / generated from investing activities | 6 | (92) | Changed from outflow to inflow | | Net cash used in financing activities | (1,114) | (2,545) | Outflow decreased | | Net decrease in cash and cash equivalents | (1,578) | (1,497) | Decrease widened | | Cash and cash equivalents at end of period | 922 | 942 | Slightly decreased | [Notes to the Condensed Consolidated Financial Statements](index=11&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%99%84%E6%B3%A8) This section provides detailed explanatory notes supporting the condensed consolidated financial statements, covering general information, accounting policies, and specific financial items [General Information](index=11&type=section&id=%E4%B8%80%E8%88%AC%E8%B5%84%E6%96%99) Top Standard Corporation was incorporated in the Cayman Islands in 2016, listed on GEM in Hong Kong in 2018, and primarily operates restaurants and online wine sales, with JSS Group Corporation as a major shareholder - The Company was incorporated in the Cayman Islands on February 11, 2016, and listed on GEM of the Stock Exchange of Hong Kong on February 13, 2018[13](index=13&type=chunk) - The Company is an investment holding company, with its subsidiaries primarily engaged in restaurant operations and online sales of alcoholic beverages[14](index=14&type=chunk) - JSS Group Corporation is a major shareholder of the Company, wholly owned by Mr. Chu Ka Fai, an executive director[13](index=13&type=chunk) [Basis of Preparation and Principal Accounting Policies](index=11&type=section&id=%E7%BC%96%E5%88%B6%E5%9F%BA%E5%87%86%E5%8F%8A%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96) The 2025 interim financial statements are prepared under Hong Kong GAAP and GEM Listing Rules, consistent with 2024 annual policies, though auditors express no opinion on going concern uncertainties - The 2025 interim financial statements are prepared in accordance with Hong Kong Generally Accepted Accounting Principles (including Hong Kong Accounting Standard 34) and the GEM Listing Rules[15](index=15&type=chunk) - The accounting policies adopted are consistent with those used in the 2024 annual audited consolidated financial statements, but auditors express no opinion on multiple uncertainties related to going concern[16](index=16&type=chunk) [Going Concern Assumption](index=12&type=section&id=%E6%8C%81%E7%BB%AD%E7%BB%8F%E8%90%A5%E5%81%87%E8%AE%BE) The Group faces going concern risks due to current liabilities exceeding current assets and total liabilities exceeding total assets, with management planning business expansion, new brand introduction, external financing, and group restructuring to mitigate liquidity pressure Going Concern Financial Position | Indicator | 2025 (HKD) | 2024 (HKD) | | :--- | :--- | :--- | | Current liabilities exceeding current assets | 15,938,000 | 18,473,000 | | Total liabilities exceeding total assets | 20,850,000 | 20,491,000 | | Cash and cash equivalents | 922,000 | 2,585,000 | - Management plans to expand its catering business and develop gift, floral arrangement, and event decoration services, while also introducing a renowned Hong Kong restaurant brand to Malaysia[17](index=17&type=chunk) - The newly introduced brand Miss J has contributed approximately **HKD 3,484,000** in revenue, while existing brands Sushi Mew, Sushi Qubey, and Aori Ramen collectively contributed approximately **HKD 6,833,000** in revenue[17](index=17&type=chunk) - The Group will continue to seek other financing options, consider group restructuring, including securing new investments, negotiating with creditors, evaluating potential mergers or collaborations, and reorganizing operations to enhance efficiency and reduce costs[17](index=17&type=chunk) [Revenue and Segment Information](index=13&type=section&id=%E6%94%B6%E5%85%A5%E5%8F%8A%E5%88%86%E9%83%A8%E8%B5%84%E6%96%99) The Group's revenue primarily stems from catering services, which significantly increased to HKD 10,317 thousand for the six months ended June 30, 2025, while online wine sales decreased, with Malaysia being the main revenue source Revenue Composition (For the Six Months Ended June 30) | Revenue Source | 2025 (HKD thousands) | 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Catering services revenue | 10,317 | 4,757 | Increased by 116.88% | | Online sales of alcoholic beverages | 68 | 225 | Decreased by 69.78% | | Total | 10,385 | 4,982 | Increased by 108.47% | - The Group has two operating and reportable segments: catering services revenue and online sales of alcoholic beverages under the MOW brand[23](index=23&type=chunk) Revenue by Geographical Region (For the Six Months Ended June 30) | Region | 2025 (HKD thousands) | 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Hong Kong | 68 | 225 | Decreased by 69.78% | | Malaysia | 10,317 | 4,757 | Increased by 116.88% | | Total | 10,385 | 4,982 | Increased by 108.47% | [Finance Costs](index=15&type=section&id=%E8%9E%8D%E8%B5%84%E6%88%90%E6%9C%AC) For the six months ended June 30, 2025, the Group's finance costs, primarily from interest on lease liabilities, slightly decreased compared to the prior year Finance Costs (For the Six Months Ended June 30) | Source of Finance Costs | 2025 (HKD thousands) | 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Interest on lease liabilities | 544 | 610 | Decreased by 10.82% | [Income Tax Expense](index=16&type=section&id=%E6%89%80%E5%BE%97%E7%A8%8E%E5%BC%80%E6%94%AF) No Hong Kong profits tax provision was made as the Group did not generate assessable profits in either reporting period - The Group did not generate assessable profits for the six months ended June 30, 2024, and 2025, thus no provision for Hong Kong profits tax was made[30](index=30&type=chunk) [Dividends](index=16&type=section&id=%E8%82%A1%E6%81%AF) No dividends were paid or declared by the Company for the six months ended June 30, 2025 - No dividends were paid or declared by the Company for the six months ended June 30, 2025 (2024: Nil)[31](index=31&type=chunk) [Loss Per Share](index=16&type=section&id=%E6%AF%8F%E8%82%A1%E4%BA%8F%E6%8D%9F) For the six months ended June 30, 2025, the loss attributable to owners of the Company narrowed, reducing basic loss per share from 1.89 HK cents to 0.28 HK cents, with no diluted loss per share presented due to the absence of potential ordinary shares Loss Per Share (For the Six Months Ended June 30) | Indicator | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Loss attributable to owners of the Company (HKD thousands) | (558) | (3,123) | Loss narrowed | | Weighted average number of ordinary shares in issue (thousands) | 199,066 | 165,888 | Increased by 20% | | Basic loss per share (HK cents) | (0.28) | (1.89) | Loss narrowed | - Diluted loss per share information is not presented as there were no potential ordinary shares in issue for both periods[35](index=35&type=chunk) [Property and Equipment](index=17&type=section&id=%E7%89%A9%E4%B8%9A%E5%8F%8A%E8%AE%BE%E5%A4%87) For the six months ended June 30, 2025, the Group did not acquire any property and equipment, unlike the prior year which saw minor acquisitions Acquisition of Property and Equipment (For the Six Months Ended June 30) | Indicator | 2025 (HKD) | 2024 (HKD) | | :--- | :--- | :--- | | Acquisition of property and equipment | 0 | 100,000 | [Trade and Other Receivables, Deposits and Prepayments](index=17&type=section&id=%E8%B4%B8%E6%98%93%E5%BA%94%E6%94%B6%E6%AC%BE%E9%A1%B9%E3%80%81%E6%8C%89%E9%87%91%E5%8F%8A%E9%A2%84%E4%BB%98%E6%AC%BE%E9%A1%B9) As of June 30, 2025, the Group's trade and other receivables, deposits, and prepayments totaled HKD 3,548 thousand, an increase from December 31, 2024, with a significant rise in trade receivables aged over 90 days Trade and Other Receivables, Deposits and Prepayments (As of June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Trade receivables | 1,902 | 640 | Increased by 197.19% | | Deposits, prepayments and other receivables | 1,646 | 1,444 | Increased by 14.00% | | Total | 3,548 | 2,084 | Increased by 70.25% | Ageing Analysis of Trade Receivables (As of June 30) | Ageing | 2025 (HKD thousands) | 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | 0 to 30 days | 717 | 517 | Increased by 38.68% | | Over 90 days | 727 | 39 | Increased by 1764.10% | [Share Capital](index=18&type=section&id=%E8%82%A1%E6%9C%AC) The Company completed a share consolidation on January 18, 2024, merging ten HKD 0.01 shares into one HKD 0.1 share, and a new share placement on November 7, 2024, issuing 33,177,600 shares for net proceeds of approximately HKD 3.3 million, increasing issued share capital to HKD 19,906 thousand - On January 18, 2024, the Company completed a share consolidation, merging every ten shares of **HKD 0.01** par value into one share of **HKD 0.1** par value[40](index=40&type=chunk) - On November 7, 2024, the Company completed a placement of **33,177,600** new shares at a placement price of **HKD 0.1** per share, generating net proceeds of approximately **HKD 3,300,000**[40](index=40&type=chunk) Changes in Share Capital (As of June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Issued and fully paid share capital | 19,906 | 16,589 | Increased by 19.99% | [Trade and Other Payables and Accrued Charges](index=19&type=section&id=%E8%B4%B8%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E5%BA%94%E4%BB%98%E6%AC%BE%E9%A1%B9%E5%8F%8A%E5%BA%94%E8%AE%A1%E8%B4%B9%E7%94%A8) As of June 30, 2025, the Group's trade and other payables and accrued charges totaled HKD 10,614 thousand, a slight increase from December 31, 2024, with a high proportion of trade payables aged over 90 days Trade and Other Payables and Accrued Charges (As of June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Trade payables | 4,770 | 3,914 | Increased by 21.87% | | Other payables and accrued charges | 5,844 | 6,239 | Decreased by 6.33% | | Total | 10,614 | 10,153 | Increased by 4.54% | Ageing Analysis of Trade Payables (As of June 30) | Ageing | 2025 (HKD thousands) | 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Over 90 days | 3,225 | 2,300 | Increased by 40.22% | [Bank and Other Borrowings](index=20&type=section&id=%E9%93%B6%E8%A1%8C%E5%8F%8A%E5%85%B6%E4%BB%96%E5%80%9F%E6%AC%BE) As of June 30, 2025, the Group's other borrowings were HKD 871 thousand, a significant decrease from December 31, 2024, with all borrowings repayable within one year at an effective annual interest rate of 14.68% and guaranteed by non-controlling interests and a subsidiary Bank and Other Borrowings (As of June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Other borrowings | 871 | 1,718 | Decreased by 49.29% | - The effective annual interest rate for the Group's other bank borrowings is **14.68%**[43](index=43&type=chunk) - Other borrowings are guaranteed by Focus Supernova Sdn. Bhd, a non-controlling interest of the Company, and Noble Triumph Limited, a subsidiary of the Company[44](index=44&type=chunk) [Related Party Transactions](index=21&type=section&id=%E5%85%B3%E8%BF%9E%E6%96%B9%E4%BA%A4%E6%98%93) For the six months ended June 30, 2025, remuneration for executive directors and other key management personnel significantly increased Key Management Personnel Remuneration (For the Six Months Ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Short-term benefits | 432 | 120 | Increased by 260% | | Post-employment benefits | 17 | 6 | Increased by 183.33% | | Total | 449 | 126 | Increased by 256.35% | [Fair Value Measurement](index=21&type=section&id=%E5%85%AC%E5%B9%B3%E5%80%BC%E8%AE%A1%E9%87%8F) As of June 30, 2025, and December 31, 2024, there were no material differences between the carrying amounts and fair values of all financial assets and liabilities - There were no material differences between the carrying amounts and fair values of all financial assets and financial liabilities[47](index=47&type=chunk) [Events After the Reporting Period](index=21&type=section&id=%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%90%8E%E4%BA%8B%E9%A1%B9) The Company's directors are unaware of any significant post-reporting period events other than those disclosed in this report - No significant events after the reporting period have occurred other than those disclosed in this report[48](index=48&type=chunk) [Litigation](index=21&type=section&id=%E8%AF%89%E8%AE%BC) Apart from litigation disclosed in the annual report and this interim report, the Group had no other significant litigation during the six months ended June 30, 2025 - Other than the disclosed litigation, there was no other significant litigation during the six months ended June 30, 2025[49](index=49&type=chunk) [Comparative Figures](index=21&type=section&id=%E6%AF%94%E8%BE%83%E6%95%B0%E5%AD%97) Certain comparative figures have been reclassified to align with the current period's presentation - Certain comparative figures have been reclassified to conform with the presentation for the current period[50](index=50&type=chunk) [Approval of Interim Condensed Consolidated Financial Statements](index=21&type=section&id=%E6%89%B9%E5%87%86%E4%B8%AD%E6%9C%9F%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) The interim condensed consolidated financial statements were approved and authorized for issue by the Board of Directors on August 29, 2025 - The interim condensed consolidated financial statements were approved and authorized for issue by the Board of Directors on August 29, 2025[51](index=51&type=chunk) [Management Discussion and Analysis](index=22&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E5%8F%8A%E5%88%86%E6%9E%90) This section provides an overview of the Group's business and financial performance, liquidity, and outlook [Business Review](index=22&type=section&id=%E4%B8%9A%E5%8A%A1%E5%9B%9E%E9%A1%B1) The Group primarily operates restaurants in Southeast Asia and online wine sales in Hong Kong, with revenue increasing by 108.0% to approximately HKD 10.4 million for the six months ended June 30, 2025, driven by Malaysian restaurant business growth - The Group primarily operates restaurants in Southeast Asia and online sales of alcoholic beverages in Hong Kong[52](index=52&type=chunk) Revenue Growth (For the Six Months Ended June 30) | Indicator | 2025 (HKD) | 2024 (HKD) | Growth Rate | | :--- | :--- | :--- | :--- | | Revenue | 10,400,000 | 5,000,000 | 108.0% | - The increase in revenue was primarily due to increased revenue generated from restaurant operations in Malaysia[52](index=52&type=chunk) [Financial Review](index=23&type=section&id=%E8%B4%A2%E5%8A%A1%E5%9B%9E%E9%A1%B1) The Group experienced significant revenue growth and a narrowed loss, but changes in raw material, staff costs, and depreciation expenses collectively impacted overall financial performance [Revenue](index=23&type=section&id=%E6%94%B6%E5%85%A5) For the six months ended June 30, 2025, the Group's revenue increased to approximately HKD 10.4 million, primarily driven by growth in its Malaysian restaurant business Revenue (For the Six Months Ended June 30) | Indicator | 2025 (HKD) | 2024 (HKD) | | :--- | :--- | :--- | | Revenue | 10,400,000 | 5,000,000 | - The increase in revenue was primarily due to increased revenue generated from restaurant operations in Malaysia[53](index=53&type=chunk) [Other Gains and Losses](index=23&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E5%8F%8A%E4%BA%8F%E6%8D%9F) For the six months ended June 30, 2025, the Group recorded no other gains or losses, compared to a small net other loss in the prior year Other Gains and Losses (For the Six Months Ended June 30) | Indicator | 2025 (HKD) | 2024 (HKD) | | :--- | :--- | :--- | | Other gains or losses | 0 | (3,000) | [Raw Materials and Consumables Used](index=23&type=section&id=%E5%B7%B2%E4%BD%BF%E7%94%A8%E5%8E%9F%E6%9D%90%E6%96%99%E5%8F%8A%E8%80%97%E6%9D%90) Raw materials and consumables used increased from approximately HKD 1.7 million to HKD 4.4 million, primarily due to increased sales Raw Materials and Consumables Used (For the Six Months Ended June 30) | Indicator | 2025 (HKD) | 2024 (HKD) | Change | | :--- | :--- | :--- | :--- | | Raw materials and consumables used | 4,400,000 | 1,700,000 | Increased by 158.82% | - The increase was primarily due to increased sales[55](index=55&type=chunk) [Staff Costs](index=24&type=section&id=%E5%91%98%E5%B7%A5%E6%88%90%E6%9C%AC) Staff costs increased from approximately HKD 2.0 million to HKD 3.3 million, primarily due to the hiring of new employees for restaurants Staff Costs (For the Six Months Ended June 30) | Indicator | 2025 (HKD) | 2024 (HKD) | Change | | :--- | :--- | :--- | :--- | | Staff costs | 3,300,000 | 2,000,000 | Increased by 65% | - The increase was due to the hiring of new employees for the restaurants[56](index=56&type=chunk) [Depreciation](index=24&type=section&id=%E6%8A%98%E6%97%A7) Depreciation significantly decreased from approximately HKD 1.9 million to HKD 0.1 million, primarily due to impairment losses recognized on property, equipment, and right-of-use assets as of December 31, 2024 Depreciation (For the Six Months Ended June 30) | Indicator | 2025 (HKD) | 2024 (HKD) | Change | | :--- | :--- | :--- | :--- | | Depreciation | 100,000 | 1,900,000 | Decreased by 94.74% | - The decrease in depreciation was primarily due to the recognition of impairment losses on certain of the Group's property, equipment, and right-of-use assets as of December 31, 2024[57](index=57&type=chunk) [Finance Costs](index=24&type=section&id=%E8%9E%8D%E8%B5%84%E6%88%90%E6%9C%AC) For the six months ended June 30, 2025, finance costs remained stable at approximately HKD 0.5 million Finance Costs (For the Six Months Ended June 30) | Indicator | 2025 (HKD) | 2024 (HKD) | | :--- | :--- | :--- | | Finance costs | 500,000 | 600,000 | [Loss and Total Comprehensive Expense](index=24&type=section&id=%E4%BA%8F%E6%8D%9F%E5%8F%8A%E5%85%A8%E9%9D%A2%E5%BC%80%E6%94%AF%E6%80%BB%E9%A2%9D) For the six months ended June 30, 2025, loss and total comprehensive expense significantly decreased to approximately HKD 0.3 million and HKD 0.4 million, respectively, influenced by the aforementioned factors Loss and Total Comprehensive Expense (For the Six Months Ended June 30) | Indicator | 2025 (HKD) | 2024 (HKD) | Change | | :--- | :--- | :--- | :--- | | Loss | 300,000 | 4,000,000 | Loss narrowed | | Total comprehensive expense | 400,000 | 4,000,000 | Loss narrowed | - The decrease in loss and total comprehensive expense was primarily due to the combined effect of the factors discussed above[59](index=59&type=chunk) [Basic Loss Per Share](index=24&type=section&id=%E6%AF%8F%E8%82%A1%E5%9F%BA%E6%9C%AC%E4%BA%8F%E6%8D%9F) For the six months ended June 30, 2025, basic loss per share significantly narrowed to approximately 0.28 HK cents, consistent with the overall trend of reduced losses Basic Loss Per Share (For the Six Months Ended June 30) | Indicator | 2025 (HK cents) | 2024 (HK cents) | Change | | :--- | :--- | :--- | :--- | | Basic loss per share | 0.28 | 1.89 | Loss narrowed | [Reserves](index=24&type=section&id=%E5%82%A8%E5%A4%87) Changes in the Group's reserves for the six months ended June 30, 2025, are detailed in the condensed consolidated statement of changes in equity - Changes in the Group's reserves for the six months ended June 30, 2025, are presented in the unaudited condensed consolidated statement of changes in equity[61](index=61&type=chunk) [Liquidity and Financial Resources](index=25&type=section&id=%E6%B5%81%E5%8A%A8%E8%B5%84%E9%87%91%E5%8F%8A%E8%B4%A2%E5%8A%A1%E8%B5%84%E6%BA%90) As of June 30, 2025, the Group had total assets of approximately HKD 6.0 million, a current ratio of approximately 0.2 times, bank balances and cash of approximately HKD 922 thousand, and total interest-bearing borrowings of approximately HKD 871 thousand, with a zero gearing ratio due to negative owners' equity Liquidity and Financial Resources (As of June 30) | Indicator | 2025 (HKD) | 2024 (HKD) | Change | | :--- | :--- | :--- | :--- | | Total assets | 6,000,000 | 6,400,000 | Decreased by 6.25% | | Total liabilities | 26,800,000 | 26,900,000 | Decreased by 0.37% | | Shareholders' deficit | 20,900,000 | 20,500,000 | Deficit widened | | Current ratio | 0.2 times | 0.2 times | Remained stable | | Bank balances and cash | 922,000 | 2,600,000 | Decreased by 64.54% | | Total interest-bearing borrowings | 871,000 | 1,700,000 | Decreased by 48.76% | - The Group's gearing ratio was zero as of June 30, 2025, due to negative owners' equity[62](index=62&type=chunk) [Foreign Exchange Risk](index=25&type=section&id=%E5%A4%96%E6%B1%87%E9%A3%8E%E9%99%A9) The Group is exposed to foreign exchange risk arising from Singapore Dollar and Malaysian Ringgit, which it manages by regularly reviewing net foreign exchange exposure and entering into currency hedging arrangements as appropriate - The Group is exposed to foreign exchange risk arising from Singapore Dollar and Malaysian Ringgit[63](index=63&type=chunk) - The Group manages its foreign exchange risk by regularly reviewing its net foreign exchange exposure and entering into currency hedging arrangements when necessary to mitigate the impact of exchange rate fluctuations[63](index=63&type=chunk) [Capital Structure](index=25&type=section&id=%E8%B5%84%E6%9C%AC%E6%9E%B6%E6%9E%84) The Group's share capital consists solely of ordinary shares, with issued share capital of HKD 19,906,560 as of June 30, 2025, comprising 199,065,600 shares of HKD 0.1 par value each - The Group's share capital comprises solely ordinary shares[64](index=64&type=chunk) Issued Share Capital (As of June 30) | Indicator | 2025 (HKD) | | :--- | :--- | | Issued share capital | 19,906,560 | | Number of shares | 199,065,600 | | Par value per share | 0.1 | [Borrowings](index=26&type=section&id=%E5%80%9F%E6%AC%BE) As of June 30, 2025, the Group had interest-bearing borrowings of approximately HKD 871 thousand at an effective interest rate of 14.68%, with amounts due to related parties of approximately HKD 3.3 million and to non-controlling interests of approximately HKD 6.5 million Borrowings (As of June 30) | Indicator | 2025 (HKD) | 2024 (HKD) | Change | | :--- | :--- | :--- | :--- | | Interest-bearing borrowings | 871,000 | 1,700,000 | Decreased by 48.76% | | Amounts due to related parties | 3,300,000 | 3,600,000 | Decreased by 8.33% | | Amounts due to non-controlling interests | 6,500,000 | 5,500,000 | Increased by 18.18% | - The effective interest rate for the Group's other bank borrowings is **14.68%**, and no interest rate hedging was utilized[65](index=65&type=chunk) [Pledge of Assets](index=26&type=section&id=%E8%B5%84%E4%BA%A7%E6%8A%B5%E6%8A%BC) The Group had no pledge of assets as of December 31, 2024, and June 30, 2025 - The Group had no pledge of assets as of December 31, 2024, and June 30, 2025[66](index=66&type=chunk) [Employees and Remuneration Policy](index=26&type=section&id=%E9%9B%87%E5%91%98%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group's total number of employees increased to 52, with total staff costs rising to approximately HKD 3.3 million, and remuneration policy based on job nature, qualifications, experience, and performance assessment Number of Employees and Staff Costs (As of June 30) | Indicator | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Total number of employees | 52 persons | 48 persons | Increased by 4 persons | | Total staff costs (For the six months ended June 30) | 3,300,000 HKD | 2,000,000 HKD | Increased by 65% | - Employee remuneration is commensurate with job nature, qualifications, and experience, with salaries and wages reviewed annually based on performance appraisals and other relevant factors[67](index=67&type=chunk) [Material Acquisitions and Disposals](index=27&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B4%AD%E5%8F%8A%E5%87%BA%E5%94%AE) For the six months ended June 30, 2025, the Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures - The Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures for the six months ended June 30, 2025[68](index=68&type=chunk) [Contingent Liabilities](index=27&type=section&id=%E6%88%96%E7%84%B6%E8%B4%9F%E5%80%BA) The Group faces several lawsuits and claims related to outstanding rent and salaries, potentially incurring additional interest and penalties, but has obtained legal advice indicating no additional interest or penalties are payable beyond amounts already provided - The Group has received several lawsuits and claims from various parties related to outstanding rent and salaries[69](index=69&type=chunk) - The Group has obtained legal advice indicating that no additional interest or penalties are payable beyond the amounts provided in other payables and accrued charges, and salaries payable and provisions[69](index=69&type=chunk) [Capital Commitments](index=27&type=section&id=%E8%B5%84%E6%9C%AC%E6%89%BF%E6%8B%85) The Group had no significant capital commitments as of December 31, 2024, and June 30, 2025 - The Group had no significant capital commitments as of December 31, 2024, and June 30, 2025[70](index=70&type=chunk) [Dividends](index=27&type=section&id=%E8%82%A1%E6%81%AF) The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025[71](index=71&type=chunk) [Material Investments and Plans for Capital Assets](index=27&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B5%84%E5%8F%8A%E8%B5%84%E6%9C%AC%E8%B5%84%E4%BA%A7%E8%AE%A1%E5%88%92) Apart from disclosures in this report, the Group held no material investments as of December 31, 2024, and June 30, 2025, and had no other plans involving significant investments and capital assets - The Group held no material investments as of December 31, 2024, and June 30, 2025[72](index=72&type=chunk) - The Group had no other plans involving significant investments and capital assets as of the date of this report[72](index=72&type=chunk) [Principal Risks and Uncertainties](index=28&type=section&id=%E4%B8%BB%E8%A6%81%E9%A3%8E%E9%99%A9%E5%8F%8A%E4%B8%8D%E7%A1%AE%E5%AE%9A%E5%9B%A0%E7%B4%A0) This section outlines the key risks and uncertainties facing the Group, including economic dependencies and cost control challenges [Principal Risks and Uncertainties](index=28&type=section&id=%E4%B8%BB%E8%A6%81%E9%A3%8E%E9%99%A9%E5%8F%8A%E4%B8%8D%E7%A1%AE%E5%AE%9A%E5%9B%A0%E7%B4%A0) The Group's principal risks include reliance on economic conditions in Malaysia and Hong Kong, and challenges in cost control due to fluctuations in rent, raw materials, and staff costs - The Group's revenue is primarily derived from Malaysia and Hong Kong, exposing it to risks from unfavorable local economic conditions or additional restrictions[73](index=73&type=chunk) - Rental expenses, raw material and consumable costs, and staff costs constitute a significant portion of operating costs, with fluctuating food ingredient prices and high rental costs potentially impacting cost control[73](index=73&type=chunk) [Prospects](index=29&type=section&id=%E5%89%8D%E6%99%AF) This section outlines the Group's future strategies and outlook for business development and profitability [Prospects](index=29&type=section&id=%E5%89%8D%E6%99%AF) The Group is optimistic about the future development of its Malaysian catering business and will continue to explore new opportunities in Southeast Asia, including gift, floral arrangement, and event decoration services, to diversify revenue and enhance profitability - The **108.0%** revenue growth reflects the significant success of the Group's strategy to expand into overseas markets, with plans for continued further expansion in the future[74](index=74&type=chunk) - The Group is optimistic about the future development of its Malaysian catering business and believes its restaurants will generate more revenue in the future[74](index=74&type=chunk) - The Group will continue to explore new business opportunities in Southeast Asia, including gift, floral arrangement, and event decoration services, to maintain its market position and diversify and stabilize revenue streams[74](index=74&type=chunk) - The Group will strive to reduce costs and enhance resource allocation efficiency to enable its restaurants to become profitable and maintain profitability and market competitive advantages[74](index=74&type=chunk) [Corporate Governance and Other Information](index=30&type=section&id=%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B5%84%E6%96%99) This section details the Group's corporate governance practices, directors' and shareholders' interests, and other relevant information [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares, and Debentures](index=30&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E4%B8%BB%E8%A6%81%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%91%98%E4%BA%8E%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E5%85%B3%E8%82%A1%E4%BB%BD%E5%8F%8A%E5%80%BA%E6%9D%83%E8%AF%81%E7%9A%84%E6%9D%83%E7%9B%8A%E5%8F%8A%E6%B7%A1%E4%BB%93) As of June 30, 2025, Executive Director Mr. Chu Ka Fai held a 23.20% equity interest in the Company through his wholly-owned JSS Group Corporation Directors' Interests in the Company's Shares (As of June 30) | Name | Capacity/Nature of interest | Number of shares | Approximate percentage of shareholding (%) | | :--- | :--- | :--- | :--- | | Mr. Chu Ka Fai | Interest in controlled corporation | 46,188,800 | 23.20% | - Mr. Chu Ka Fai holds an equity interest in the Company through his wholly-owned JSS Group Corporation[75](index=75&type=chunk) Directors' Interests in Shares of Associated Corporations (As of June 30) | Name | Name of associated corporation | Capacity/Nature of interest | Number of shares | Approximate percentage of shareholding (%) | | :--- | :--- | :--- | :--- | | Mr. Chu Ka Fai | JSS Group | Beneficial owner | 1,000 | 100% | [Directors' Rights to Acquire Shares or Debentures](index=31&type=section&id=%E8%91%A3%E4%BA%8B%E6%94%B6%E8%B4%AD%E8%82%A1%E4%BB%BD%E6%88%96%E5%80%BA%E6%9D%83%E8%AF%81%E7%9A%84%E6%9D%83%E5%88%A9) For the six months ended June 30, 2025, neither the Company nor its subsidiaries entered into any arrangements enabling directors to acquire benefits through shares or debentures of the Company or any other corporation - Neither the Company nor any of its subsidiaries entered into any arrangements enabling directors to acquire benefits by means of acquiring shares or debentures of the Company or any other corporation[77](index=77&type=chunk) [Substantial Shareholders' and Other Shareholders' Interests and Short Positions in Shares and Underlying Shares](index=32&type=section&id=%E4%B8%BB%E8%A6%81%E5%8F%8A%E5%85%B6%E4%BB%96%E8%82%A1%E6%9D%B1%E4%BA%8E%E8%82%A1%E4%BB%BD%E5%8F%8A%E7%9B%B8%E5%85%B3%E8%82%A1%E4%BB%BD%E7%9A%84%E6%9D%83%E7%9B%8A%E5%8F%8A%E6%B7%A1%E4%BB%93) As of June 30, 2025, Lazarus Securities Pty Ltd and JSS Group each held 23.20% of shares, Hng Bok Chuan held 16.67%, Axis Motion Limited held 11.57%, and Focus Dynamics Group Berhad held 9.65% Substantial Shareholders' and Other Shareholders' Interests in the Company's Shares (As of June 30) | Name | Capacity/Nature of interest | Number of shares | Approximate percentage of shareholding (%) | | :--- | :--- | :--- | :--- | | Lazarus Securities Pty Ltd | Beneficial owner | 46,188,800 | 23.20% | | JSS Group | Beneficial owner | 46,188,800 | 23.20% | | Hng Bok Chuan | Beneficial owner | 33,177,600 | 16.67% | | Axis Motion Limited | Beneficial owner | 23,040,000 | 11.57% | | Focus Dynamics Group Berhad | Beneficial owner | 19,200,000 | 9.65% | [Purchase, Sale or Redemption of the Company's Listed Securities](index=33&type=section&id=%E8%B4%AD%E4%B9%B0%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B5%8E%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%9A%84%E4%B8%8A%E5%B8%82%E8%AF%81%E5%88%B8) For the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, nor issued or exercised any convertible securities, options, warrants, or similar rights - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[79](index=79&type=chunk) - Neither the Company nor any of its subsidiaries issued or granted any convertible securities, options, warrants, or similar rights, nor were any such rights exercised[79](index=79&type=chunk) [Competing Interests](index=33&type=section&id=%E7%AB%9E%E4%BA%89%E6%9D%83%E7%9B%8A) As of June 30, 2025, no director, controlling shareholder, or their close associates were deemed to have any interest in businesses competing or potentially competing with the Group's business - No director, controlling shareholder of the Company, or their respective close associates were deemed to have any interest in businesses that directly or indirectly compete or may compete with the Group's business[80](index=80&type=chunk) [Corporate Governance](index=33&type=section&id=%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB) The Company did not participate in any activities subject to the continuous disclosure requirements under GEM Listing Rules 17.22 and 17.24 - The Company did not participate in any activities subject to the continuous disclosure requirements under GEM Listing Rules 17.22 and 17.24[81](index=81&type=chunk) [Directors' Securities Transactions](index=33&type=section&id=%E8%91%A3%E4%BA%8B%E8%AF%81%E5%88%B8%E4%BA%A4%E6%98%93) The Company adopted a code of conduct for directors' securities transactions no less stringent than GEM Listing Rules, confirming no non-compliance for the six months ended June 30, 2025 - The Company has adopted a code of conduct for directors' securities transactions with terms no less stringent than the required standard of dealings set out in Rules 5.48 to 5.67 of the GEM Listing Rules[82](index=82&type=chunk) - For the six months ended June 30, 2025, there was no non-compliance with the required standard of dealings concerning directors' securities transactions[82](index=82&type=chunk) [Compliance with Corporate Governance Code](index=34&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%88%99) The Company complied with the Corporate Governance Code, though the roles of Chairman and Chief Executive Officer are combined in Mr. Chu Ka Fai, an arrangement the Board believes is in the Group's best interest for effective strategy execution - The Group has complied with the Corporate Governance Code, except that the roles of Chairman and Chief Executive Officer are combined in Mr. Chu Ka Fai, deviating from Code Provision C.2.1[83](index=83&type=chunk) - The Board believes that combining the two roles in Mr. Chu Ka Fai is in the best interest of the Group, helping to maintain and strengthen the Group's philosophy, ensure consistent leadership, and effectively perform executive functions[83](index=83&type=chunk) [Changes in Directors' Biographical Details](index=34&type=section&id=%E8%91%A3%E4%BA%8B%E5%B1%A5%E5%8E%86%E8%AF%A6%E6%83%85%E5%8F%98%E5%8A%A8) For the six months ended June 30, 2025, there were no changes in directors' biographical details requiring disclosure under GEM Listing Rule 17.50A(1), other than those disclosed in this report - For the six months ended June 30, 2025, there were no changes in directors' biographical details requiring disclosure under GEM Listing Rule 17.50A(1)[84](index=84&type=chunk) [Audit and Risk Management Committee](index=35&type=section&id=%E5%AE%A1%E6%A0%B8%E5%8F%8A%E9%A3%8E%E9%99%A9%E7%AE%A1%E7%90%86%E5%A7%94%E5%91%98%E4%BC%9A) The Company established an Audit and Risk Management Committee, comprising three independent non-executive directors, responsible for monitoring compliance, reviewing internal control reports, and overseeing financial reporting and risk management systems, and has reviewed this interim report's financial information - The Audit and Risk Management Committee comprises three independent non-executive directors, with Mr. Tang Chiu Ming as Chairman[85](index=85&type=chunk) - The Committee's primary responsibilities include monitoring compliance, reviewing internal control reports, and reviewing and overseeing the financial reporting process, risk management procedures, and internal control systems[85](index=85&type=chunk) - The Audit and Risk Management Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025, and confirmed their preparation in compliance with applicable accounting principles and Stock Exchange requirements[85](index=85&type=chunk) [Events After the Reporting Period](index=35&type=section&id=%E6%8A%A5%E5%91%8A%E6%9C%9F%E9%97%B4%E5%90%8E%E4%BA%8B%E9%A1%B9) Apart from disclosures in Note 16 to the condensed consolidated financial statements, the directors are unaware of any significant events requiring disclosure that occurred after June 30, 2025, and up to the date of this report - Other than those disclosed in Note 16 to the condensed consolidated financial statements, the directors are unaware of any significant events requiring disclosure that occurred after June 30, 2025, and up to the date of this report[86](index=86&type=chunk) [Board Approval](index=35&type=section&id=%E8%91%A3%E4%BA%8B%E4%BC%9A%E6%89%B9%E5%87%86) This report was approved by the Board of Directors on August 29, 2025, represented by Mr. Chu Ka Fai, Chairman and Executive Director - This report was approved by the Board of Directors on August 29, 2025, represented by Mr. Chu Ka Fai, Chairman and Executive Director[87](index=87&type=chunk) - As of the date of this report, the executive directors are Mr. Chu Ka Fai and Mr. Ying Kan Man; the independent non-executive directors are Mr. Tang Chiu Ming, Ms. Ding Wai Yuk, and Mr. Zuo Tifen[87](index=87&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之內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告 全部或任何部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。 LEGEND STRATEGY INTERNATIONAL HOLDINGS GROUP COMPANY LIMITED 朸濬國際集團控股有限公司 （於開曼群島註冊成立之有限公司） （股份代號：1355） 截至二零二五年六月三十日止六個月期間 之中期業績公告 朸濬國際集團控股有限公司（「本公司」）及其附屬公司（統稱「本集團」）董事 （「董事」）會（「董事會」）欣然宣佈本集團截至二零二五年六月三十日止六個 月期間之未經審核簡明綜合財務業績（「中期業績」）。本公告載列本公司截至 二零二五年六月三十日止六個月期間之中期報告（「中期報告」）全文，有關 內容乃根據香港聯合交易所有限公司（「聯交所」）證券上市規則之相關規定 而編製。中期業績已經董事會審核委員會審閱。本公告將刊登於本公司網站 (www.legend-strategy.com)及聯交所網站(www.hkexnews.hk)。中期報告的印刷 版本將適時寄 ...

Financial Performance - For the six months ended June 30, 2025, the company reported a net loss of RMB 38.199 million, compared to a net loss of RMB 36.077 million for the same period in 2024, representing an increase in loss of approximately 5.9%[3] - Total revenue for the reporting period was RMB 5.035 million, a decrease from RMB 1.782 million in the same period of 2024, indicating a decline of approximately 71.7%[3] - The total comprehensive loss for the period was RMB 38.199 million, compared to RMB 36.077 million in the previous year, indicating a worsening financial position[3] - The company reported a basic loss per share of RMB 0.25 for the current period, compared to a loss of RMB 0.34 per share in the same period last year[3] - Government subsidies received amounted to RMB 17,000 thousand for the six months ended June 30, 2025, compared to RMB 38,000 thousand for the same period in 2024[15] - Financial income for the six months ended June 30, 2025, was RMB 5,018,000 thousand, an increase from RMB 1,744,000 thousand in the same period of 2024[15] - The company recorded a net loss of approximately RMB 38.2 million in the reporting period, up from approximately RMB 36.1 million for the six months ended June 30, 2024[66] Expenses - Research and development expenses amounted to RMB 37.708 million, compared to RMB 28.767 million in the previous year, reflecting an increase of about 31.1%[3] - Administrative expenses were RMB 15.270 million, up from RMB 12.678 million in the prior year, marking an increase of approximately 20.5%[3] - Total research and development expenses for the reporting period amounted to approximately RMB 28.8 million, with employee costs contributing approximately RMB 8.2 million[61] - Administrative expenses for the reporting period were approximately RMB 12.7 million, reflecting a decrease due to reduced costs associated with the company's listing[62] - Financial costs increased to approximately RMB 0.8 million in the reporting period, primarily due to increased interest expenses on bank loans[63] Assets and Liabilities - Total assets decreased from RMB 516,589 thousand to RMB 483,807 thousand, a decline of approximately 6.35%[7] - Current assets net value decreased from RMB 448,852 thousand to RMB 413,991 thousand, a decline of about 7.76%[7] - Total liabilities increased from RMB 492,998 thousand to RMB 488,066 thousand, a decrease of about 1.23%[7] - The company reported a total equity of RMB 481,266 thousand, down from RMB 511,938 thousand, a decrease of about 5.98%[8] - The debt-to-asset ratio increased to approximately 13.73% as of June 30, 2025, compared to 8.7% as of December 31, 2024[71] Cash Flow - The cash and cash equivalents as of June 30, 2025, were approximately RMB 171 million, a decrease from RMB 79 million as of December 31, 2024[3] - Cash and cash equivalents totaled approximately RMB 171 million as of June 30, 2025, an increase of approximately 116% from approximately RMB 79.0 million as of December 31, 2024[67] Strategic Initiatives - The company is focusing on expanding its market presence and enhancing its product offerings through ongoing research and development initiatives[2] - The company has not provided specific guidance for future performance but indicated a commitment to improving operational efficiency and financial performance[2] - The company is exploring potential strategic partnerships and acquisitions to bolster its market position and drive growth[2] Research and Development - The company focuses on the discovery, development, and commercialization of biopharmaceuticals for cancer and autoimmune diseases, with three core products: IAH0968, IAP0971, and IAE0972[27] - The company is focused on developing regulatory immune microenvironments through direct modulation of innate and adaptive immune systems[10] - The company is developing antibody-cytokine fusion proteins to overcome limitations of traditional cytokine therapies, aiming to enhance anti-tumor effects and address the needs of cancer patients[29] - The company has a diverse product pipeline with multiple candidates in various clinical stages, including IAP0971 and IAE0972, targeting different cancers and autoimmune diseases[41] Clinical Trials - IAH0968 is an antibody-dependent cellular cytotoxicity (ADCC) enhanced monoclonal antibody currently in Phase II clinical trials for colorectal cancer and gastric cancer[27] - The company has initiated Phase II clinical trials for IAE0972 targeting head and neck squamous cell carcinoma and nasopharyngeal carcinoma[27] - IAP0971, a self-developed dual-target PD-1 antibody, showed good safety at a dose of 200μg/kg in Phase I trials for advanced malignancies, with no observed dose-limiting toxicities (DLT) or maximum tolerated doses (MTD)[34] - The company has initiated a Phase II and III clinical trial for IAE0972 in combination with chemotherapy for recurrent or metastatic HNSCC and NPC, with the first patient dosed in May 2025[38] Corporate Governance - The company has adopted corporate governance principles and has complied with all applicable rules during the reporting period[81] - The audit committee consists of three independent non-executive directors, ensuring compliance with corporate governance standards[84] - The audit committee has reviewed the interim results for the reporting period and expressed no dissent[85] Employee and Training - The group had a total of 128 employees as of June 30, 2025, with total compensation costs of approximately RMB 18.1 million during the reporting period, compared to approximately RMB 28.5 million for the six months ending June 30, 2024[79] - The group emphasizes employee training to enhance technical and product knowledge, offering various training courses for different positions[79] - The company has established a performance evaluation system to determine salary increases, bonuses, or promotions for employees[79] Future Plans - The company plans to utilize the net proceeds from the global offering fully by the end of 2028, based on the progress of core product development[77] - The company aims to focus on the development of antibody cell fusion proteins to strengthen its position in drug development[54] - The company plans to expand GMP-compliant production facilities to increase production capacity and build a commercial team[54]

[Introduction and Disclaimers](index=1&type=section&id=Introduction%20and%20Disclaimers) [Company and Report Overview](index=1&type=section&id=General%20Information) This announcement presents Top Standard Corporation's unaudited interim results for the six months ended June 30, 2025, with the Board assuming full responsibility for its accuracy and completeness - The Board of Top Standard Corporation released the unaudited interim results announcement for the six months ended June 30, 2025[3](index=3&type=chunk) - This announcement complies with the GEM Listing Rules of the Stock Exchange regarding preliminary announcements of interim results[3](index=3&type=chunk) - The Board collectively and individually assumes full responsibility for the information in this announcement, confirming its accuracy, completeness, and absence of misleading or fraudulent content[5](index=5&type=chunk) [GEM Market Characteristics and Disclaimer](index=2&type=section&id=GEM%20Characteristics%20and%20Disclaimer) The GEM market offers a listing platform for SMEs with higher investment risks, and the Stock Exchange disclaims responsibility for this report's content or any resulting losses - The GEM market is positioned as a listing platform for small and medium-sized enterprises, carrying relatively **higher investment risks** that investors should prudently assess[6](index=6&type=chunk) - GEM securities may be subject to significant market volatility and do not guarantee high liquidity[6](index=6&type=chunk) - Hong Kong Exchanges and Clearing Limited and the Stock Exchange are not responsible for this report's content, make no statement as to its accuracy or completeness, and accept no liability for any loss arising from reliance on it[6](index=6&type=chunk) [Financial Summary](index=3&type=section&id=Financial%20Summary) [Key Financial Highlights](index=3&type=section&id=Key%20Financial%20Highlights) For the six months ended June 30, 2025, the Group's revenue significantly increased by **108.0%** to approximately **HK$10,400,000**, while loss attributable to owners narrowed to approximately **HK$600,000** Financial Summary for the Six Months Ended June 30 | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 10,400 | 5,000 | 108.0% | | Loss attributable to owners of the Company | (600) | (3,100) | -80.6% | [Interim Results (Unaudited)](index=4&type=section&id=Interim%20Results%20(Unaudited)) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's revenue grew significantly, but it still recorded a loss, which substantially narrowed from the prior year, while exchange differences led to an increase in other comprehensive expenses Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the Six Months Ended June 30) | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Revenue | 10,385 | 4,982 | 108.4% increase | | Loss before tax | (290) | (4,045) | 92.8% loss narrowing | | Loss for the period | (290) | (4,045) | 92.8% loss narrowing | | Loss attributable to owners of the Company | (558) | (3,132) | 82.2% loss narrowing | | Basic and diluted loss per share (HK cents) | (0.28) | (1.89) | 85.2% loss narrowing | - Exchange differences arising from the translation of overseas operations changed from HK$4 thousand in 2024 to **(HK$69) thousand** in 2025, increasing total comprehensive expenses for the period[10](index=10&type=chunk) [Condensed Consolidated Statement of Financial Position](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's non-current and current assets both decreased, leading to a reduction in total assets, while net current liabilities and total liabilities slightly improved, but the company remains in a negative equity position Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Non-current assets | 1,444 | 1,817 | 20.5% decrease | | Current assets | 4,539 | 4,595 | 1.2% decrease | | Net current liabilities | (15,938) | (18,473) | 13.7% deficit narrowing | | Net liabilities | (20,850) | (20,491) | 1.7% deficit widening | | Equity attributable to owners of the Company | (12,154) | (11,527) | 5.4% deficit widening | - Trade receivables, deposits, and prepayments increased by **151.1%** from HK$1,125 thousand as of December 31, 2024, to **HK$2,825 thousand** as of June 30, 2025[11](index=11&type=chunk) - Cash and cash equivalents decreased by **64.3%** from HK$2,585 thousand as of December 31, 2024, to **HK$922 thousand** as of June 30, 2025[11](index=11&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, accumulated losses attributable to owners of the Company continued to increase, non-controlling interests' losses improved, but the overall total deficit slightly widened Condensed Consolidated Statement of Changes in Equity (For the Six Months Ended June 30) | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Loss for the period attributable to owners of the Company | (558) | (3,132) | 82.2% loss narrowing | | (Loss)/profit attributable to non-controlling interests | 268 | (913) | Shift from loss to profit | | Total deficit | (20,850) | (12,310) | 69.4% deficit widening | - Accumulated losses attributable to owners of the Company increased from **(HK$121,467) thousand** as of January 1, 2024, to **(HK$131,826) thousand** as of June 30, 2025[13](index=13&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, the Group experienced net cash outflow from operating activities, net cash inflow from investing activities, and net cash outflow from financing activities, resulting in a significant decrease in cash and cash equivalents at period-end Condensed Consolidated Statement of Cash Flows (For the Six Months Ended June 30) | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Net cash (used in)/generated from operating activities | (470) | 1,139 | Shift from inflow to outflow | | Net cash (used in)/generated from investing activities | 6 | (92) | Shift from outflow to inflow | | Net cash used in financing activities | (1,114) | (2,545) | 56.3% decrease in outflow | | Net decrease in cash and cash equivalents | (1,578) | (1,497) | 5.4% increase in decrease | | Cash and cash equivalents at end of period | 922 | 942 | 2.1% decrease | - Repayment of bank borrowings and lease liabilities constituted the primary components of cash outflow from financing activities[14](index=14&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [1 General Information](index=11&type=section&id=1%20General%20Information) Top Standard Corporation, incorporated in the Cayman Islands and listed on the Hong Kong Stock Exchange GEM in 2018, primarily operates restaurants and online wine sales, with its major shareholder, JSS Group, wholly owned by Executive Director Mr. Chu Ka Fai - Top Standard Corporation was incorporated in the Cayman Islands on February 11, 2016, and listed on the GEM of the Hong Kong Stock Exchange on February 13, 2018[17](index=17&type=chunk) - The Company is an investment holding company, and its subsidiaries are primarily engaged in restaurant operations and online wine sales[18](index=18&type=chunk) - JSS Group Corporation, the Company's major shareholder, is wholly owned by Mr. Chu Ka Fai, an executive director[17](index=17&type=chunk) [2 Basis of Preparation and Principal Accounting Policies](index=11&type=section&id=2%20Basis%20of%20Preparation%20and%20Principal%20Accounting%20Policies) These interim financial statements are prepared in accordance with Hong Kong GAAP and GEM Listing Rules, presented in HK$ thousand, and the company faces going concern uncertainties, which the Board addresses through business expansion, new brand introductions, and seeking external financing - These interim financial statements are prepared in accordance with Hong Kong Generally Accepted Accounting Principles (including HKAS 34) and the GEM Listing Rules, presented in **HK$ thousand**[19](index=19&type=chunk)[20](index=20&type=chunk) - As of June 30, 2025, the Company's current liabilities exceeded current assets by **HK$15,938,000**, and total liabilities exceeded total assets by **HK$20,850,000**, indicating a material uncertainty related to going concern[21](index=21&type=chunk) - Management plans to improve the financial position by expanding the catering business, introducing renowned Hong Kong restaurant brands to Malaysia, developing gift/floristry/event decoration businesses, and seeking other financing options and group restructuring[21](index=21&type=chunk) [3 Revenue and Segment Information](index=13&type=section&id=3%20Revenue%20and%20Segment%20Information) The Group's revenue, primarily from catering services, recorded significant growth, while online wine sales revenue decreased, with Malaysia being the main revenue contributor and Hong Kong contributing less Revenue Sources (For the Six Months Ended June 30) | Revenue Source | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Catering services revenue | 10,317 | 4,757 | 116.9% increase | | Online wine sales | 68 | 225 | 69.8% decrease | | **Total** | **10,385** | **4,982** | **108.4% increase** | Revenue by Geographical Region (For the Six Months Ended June 30) | Region | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Hong Kong | 68 | 225 | 69.8% decrease | | Malaysia | 10,317 | 4,757 | 116.9% increase | | **Total** | **10,385** | **4,982** | **108.4% increase** | - The Group has two operating and reportable segments: catering services revenue and online wine sales under the MOW brand[27](index=27&type=chunk) [4 Finance Costs](index=15&type=section&id=4%20Finance%20Costs) For the six months ended June 30, 2025, the Group's finance costs, primarily from interest on lease liabilities, slightly decreased compared to the same period last year Finance Costs (For the Six Months Ended June 30) | Finance Cost Source | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Interest on lease liabilities | 544 | 610 | 10.98% decrease | [5 Income Tax Expense](index=16&type=section&id=5%20Income%20Tax%20Expense) No provision for Hong Kong profits tax has been made as the Group did not generate any assessable profits in either reporting period - The Group did not generate any assessable profits for the six months ended June 30, 2024, and 2025[34](index=34&type=chunk) - Consequently, no provision for Hong Kong profits tax has been made in the consolidated financial statements[34](index=34&type=chunk) [6 Dividends](index=16&type=section&id=6%20Dividends) No dividends were paid or declared by the Company for the six months ended June 30, 2025 - No dividends were paid or declared by the Company for the six months ended June 30, 2025 (2024: nil)[35](index=35&type=chunk) [7 Loss Per Share](index=16&type=section&id=7%20Loss%20Per%20Share) For the six months ended June 30, 2025, the loss attributable to owners of the Company significantly narrowed, leading to a substantial reduction in basic loss per share, with no diluted loss per share presented due to the absence of potential ordinary shares Loss Per Share (For the Six Months Ended June 30) | Indicator | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Loss attributable to owners of the Company (HK$ Thousand) | (558) | (3,123) | 82.1% loss narrowing | | Weighted average number of ordinary shares in issue (Thousand shares) | 199,066 | 165,888 | 19.9% increase | | Basic loss per share (HK cents) | (0.28) | (1.89) | 85.2% loss narrowing | - No diluted loss per share information is presented as there were no outstanding potential ordinary shares in either reporting period[39](index=39&type=chunk) [8 Property and Equipment](index=17&type=section&id=8%20Property%20and%20Equipment) For the six months ended June 30, 2025, the Group did not acquire any property and equipment - For the six months ended June 30, 2025, the Group did not acquire any property and equipment (2024: HK$100,000)[40](index=40&type=chunk) [9 Trade and Other Receivables, Deposits and Prepayments](index=17&type=section&id=9%20Trade%20and%20Other%20Receivables,%20Deposits%20and%20Prepayments) As of June 30, 2025, the Group's total trade and other receivables, deposits, and prepayments significantly increased, primarily driven by growth in trade receivables Trade and Other Receivables, Deposits and Prepayments (As of June 30) | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Trade receivables | 1,902 | 640 | 197.2% increase | | Deposits, prepayments and other receivables | 1,646 | 1,444 | 14.0% increase | | **Total** | **3,548** | **2,084** | **70.2% increase** | - Trade receivables overdue for more than 90 days significantly increased from **HK$39 thousand** as of December 31, 2024, to **HK$727 thousand** as of June 30, 2025[42](index=42&type=chunk) [10 Share Capital](index=18&type=section&id=10%20Share%20Capital) The Company's share capital underwent a share consolidation on January 18, 2024, where every ten HK$0.01 par value shares were consolidated into one HK$0.1 par value share, followed by an increase in issued share capital due to a new share placement completed on November 7, 2024 - On January 18, 2024, the Company conducted a share consolidation, where every ten shares of HK$0.01 par value were consolidated into one share of **HK$0.1 par value**[44](index=44&type=chunk) - On November 7, 2024, the Company completed the placement of **33,177,600 new shares**, with net proceeds of approximately **HK$3,300,000**[44](index=44&type=chunk) Issued and Fully Paid Share Capital | Date | Number of Shares | Par Value (HK$ Thousand) | | :--- | :--- | :--- | | January 1, 2024 (Audited) | 1,658,880,000 | 16,589 | | December 31, 2024 (Audited)/June 30, 2025 (Unaudited) | 199,065,600 | 19,906 | [11 Trade and Other Payables and Accrued Expenses](index=19&type=section&id=11%20Trade%20and%20Other%20Payables%20and%20Accrued%20Expenses) As of June 30, 2025, the Group's total trade and other payables and accrued expenses slightly increased, with a notable rise in trade payables Trade and Other Payables and Accrued Expenses (As of June 30) | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Trade payables | 4,770 | 3,914 | 21.9% increase | | Other payables and accrued expenses | 5,844 | 6,239 | 6.3% decrease | | **Total** | **10,614** | **10,153** | **4.5% increase** | - Trade payables overdue for more than 90 days increased by **40.2%** from HK$2,300 thousand as of December 31, 2024, to **HK$3,225 thousand** as of June 30, 2025[45](index=45&type=chunk) [12 Bank and Other Borrowings](index=20&type=section&id=12%20Bank%20and%20Other%20Borrowings) As of June 30, 2025, the Group's other borrowings significantly decreased, with all borrowings repayable within one year at an effective annual interest rate of 14.68% Bank and Other Borrowings (As of June 30) | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Other borrowings | 871 | 1,718 | 49.3% decrease | - All borrowings are repayable within one year, with an effective annual interest rate of **14.68%**[47](index=47&type=chunk) - Other borrowings are guaranteed by non-controlling interest Focus Supernova Sdn. Bhd and subsidiary Noble Triumph Limited[48](index=48&type=chunk) [13 Related Party Transactions](index=21&type=section&id=13%20Related%20Party%20Transactions) For the six months ended June 30, 2025, key management personnel remuneration increased Key Management Personnel Remuneration (For the Six Months Ended June 30) | Remuneration Type | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Short-term benefits | 432 | 120 | 260.0% increase | | Post-employment benefits | 17 | 6 | 183.3% increase | | **Total** | **449** | **126** | **256.3% increase** | [14 Fair Value Measurement](index=21&type=section&id=14%20Fair%20Value%20Measurement) As of June 30, 2025, and December 31, 2024, there were no material differences between the carrying amounts and fair values of all financial assets and liabilities - There were no material differences between the carrying amounts and fair values of financial assets and financial liabilities[51](index=51&type=chunk) [15 Events After the Reporting Period](index=21&type=section&id=15%20Events%20After%20the%20Reporting%20Period) Except as disclosed in this report, the Company's directors believe no significant events occurred after the reporting period - Except as disclosed in this report, no significant events after June 30, 2025, and up to the date of this report have occurred for the Company or the Group[52](index=52&type=chunk) [16 Litigation](index=21&type=section&id=16%20Litigation) For the six months ended June 30, 2025, the Group faced no other significant litigation beyond those disclosed in the annual report and this interim report - For the six months ended June 30, 2025, no other significant litigation was brought against or was ongoing for the Group, other than those already disclosed[53](index=53&type=chunk) [17 Comparative Figures](index=21&type=section&id=17%20Comparative%20Figures) Certain comparative figures have been reclassified to align with the current period's presentation - Certain comparative figures have been reclassified to align with the current period's presentation[54](index=54&type=chunk) [18 Approval of the Interim Condensed Consolidated Financial Statements](index=21&type=section&id=18%20Approval%20of%20the%20Interim%20Condensed%20Consolidated%20Financial%20Statements) The interim condensed consolidated financial statements were approved and authorized for issue by the Board on August 29, 2025 - The interim condensed consolidated financial statements were approved and authorized for issue by the Board on August 29, 2025[55](index=55&type=chunk) [Management Discussion and Analysis](index=22&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=22&type=section&id=Business%20Review) The Group primarily operates restaurants in Southeast Asia and online wine sales in Hong Kong, with revenue significantly increasing by **108.0%** for the six months ended June 30, 2025, mainly driven by growth in its Malaysian restaurant business - The Group's principal businesses are operating restaurants in Southeast Asia and online wine sales in Hong Kong[56](index=56&type=chunk) Revenue Growth (For the Six Months Ended June 30) | Indicator | 2025 (HK$) | 2024 (HK$) | Growth Rate | | :--- | :--- | :--- | :--- | | Revenue | 10,400,000 | 5,000,000 | 108.0% | - Revenue growth is primarily attributable to increased revenue generated from restaurant operations in Malaysia[56](index=56&type=chunk) [Financial Review](index=23&type=section&id=Financial%20Review) The Group experienced significant revenue growth, accompanied by increased raw material and staff costs, while depreciation expenses substantially decreased due to impairment losses, finance costs remained stable, and overall loss and total comprehensive expenses, along with basic loss per share, significantly narrowed Key Financial Indicator Changes (For the Six Months Ended June 30) | Indicator | 2025 (HK$) | 2024 (HK$) | Change | | :--- | :--- | :--- | :--- | | Revenue | 10,400,000 | 5,000,000 | 108.0% increase | | Raw materials and consumables used | 4,400,000 | 1,700,000 | 158.8% increase | | Staff costs | 3,300,000 | 2,000,000 | 65.0% increase | | Depreciation | 100,000 | 1,900,000 | 94.7% decrease | | Finance costs | 500,000 | 600,000 | 16.7% decrease | | Loss and total comprehensive expenses | 400,000 | 4,000,000 | 90.0% decrease | | Basic loss per share (HK cents) | 0.28 | 1.89 | 85.2% decrease | - The decrease in depreciation is primarily due to the recognition of impairment losses on certain property, equipment, and right-of-use assets as of December 31, 2024[61](index=61&type=chunk) - The reduction in total loss and comprehensive expenses is mainly due to the combined effect of the aforementioned factors[63](index=63&type=chunk) [Liquidity and Financial Resources](index=25&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's total assets and bank balances and cash both decreased, with the current ratio remaining at **0.2 times**, total interest-bearing borrowings reduced, but the debt-to-asset ratio remained zero due to negative equity Liquidity and Financial Resources Overview (As of June 30) | Indicator | 2025 (HK$) | 2024 (HK$) | Change | | :--- | :--- | :--- | :--- | | Total assets | 6,000,000 | 6,400,000 | 6.3% decrease | | Total liabilities | 26,800,000 | 26,900,000 | 0.4% decrease | | Shareholders' deficit | 20,900,000 | 20,500,000 | 1.9% increase | | Current ratio | 0.2 times | 0.2 times | Unchanged | | Bank balances and cash | 922,000 | 2,600,000 | 64.6% decrease | | Total interest-bearing borrowings | 871,000 | 1,700,000 | 48.8% decrease | | Debt-to-asset ratio | Zero | Zero | Unchanged (due to negative equity) | [Foreign Exchange Risk](index=25&type=section&id=Foreign%20Exchange%20Risk) The Group faces foreign exchange risk arising from transactions denominated in Singapore Dollars and Malaysian Ringgit, which it manages by regularly reviewing net foreign exchange exposure and implementing hedging measures as appropriate - The Group is exposed to foreign exchange risk arising from transactions denominated in Singapore Dollars and Malaysian Ringgit[67](index=67&type=chunk) - The Group manages foreign exchange risk by regularly reviewing its net foreign exchange exposure and entering into currency hedging arrangements when necessary[67](index=67&type=chunk) [Capital Structure](index=25&type=section&id=Capital%20Structure) As of June 30, 2025, the Company's issued share capital was **HK$19,906,560**, comprising **199,065,600 ordinary shares** with a par value of **HK$0.1** each - The Group's capital structure consists solely of ordinary shares[68](index=68&type=chunk) Issued Share Capital (As of June 30) | Indicator | Amount | | :--- | :--- | | Issued share capital | HK$19,906,560 | | Number of shares | 199,065,600 shares | | Par value per share | HK$0.1 | [Borrowings](index=26&type=section&id=Borrowings) As of June 30, 2025, the Group's interest-bearing borrowings significantly decreased, amounts due to related parties slightly declined, while amounts due to non-controlling interests increased Borrowings (As of June 30) | Indicator | 2025 (HK$) | 2024 (HK$) | Change | | :--- | :--- | :--- | :--- | | Interest-bearing borrowings | 871,000 | 1,700,000 | 48.8% decrease | | Amounts due to related parties | 3,300,000 | 3,600,000 | 8.3% decrease | | Amounts due to non-controlling interests | 6,500,000 | 5,500,000 | 18.2% increase | - The effective annual interest rate for the Group's other bank borrowings is **14.68%**, with no interest rate hedging utilized[69](index=69&type=chunk) [Pledge of Assets](index=26&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, and December 31, 2024, the Group had no pledged assets - The Group had no pledged assets as of December 31, 2024, and June 30, 2025[70](index=70&type=chunk) [Employees and Remuneration Policy](index=26&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group's total number of employees increased to **52 persons**, with a corresponding rise in total staff costs, and remuneration policy is based on job nature, qualifications, experience, and performance assessment Employee Count and Staff Costs (As of June 30) | Indicator | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Total number of employees | 52 persons | 48 persons | 8.3% increase | | Total staff costs | HK$3,300,000 | HK$2,000,000 | 65.0% increase | - Salaries and wages are reviewed annually based on performance assessment and other relevant factors, offering competitive remuneration packages and bonuses[71](index=71&type=chunk) [Significant Acquisitions and Disposals](index=27&type=section&id=Significant%20Acquisitions%20and%20Disposals) For the six months ended June 30, 2025, the Group did not undertake any significant acquisitions or disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, the Group had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures[72](index=72&type=chunk) [Contingent Liabilities](index=27&type=section&id=Contingent%20Liabilities) The Group faces several lawsuits and claims related to overdue rent and salaries, for which legal advice has been obtained, concluding that no additional interest or penalties are required beyond the amounts already provided for - The Group has received several lawsuits and claims related to overdue rent and salaries[73](index=73&type=chunk) - The Group has obtained legal advice, concluding that no additional interest or penalties are required beyond the amounts stated in other payables and accrued expenses, salaries payable, and provisions[73](index=73&type=chunk) [Capital Commitments](index=27&type=section&id=Capital%20Commitments) As of June 30, 2025, and December 31, 2024, the Group had no significant capital commitments - The Group had no significant capital commitments as of December 31, 2024, and June 30, 2025[74](index=74&type=chunk) [Dividends](index=27&type=section&id=Dividends) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[75](index=75&type=chunk) [Material Investments and Capital Asset Plans](index=27&type=section&id=Material%20Investments%20and%20Capital%20Asset%20Plans) Except as disclosed in this report, the Group held no material investments and had no other plans involving significant investments and capital assets - Except as disclosed in this report, the Group held no material investments as of December 31, 2024, and June 30, 2025[76](index=76&type=chunk) - The Group has no other plans involving material investments and capital assets as of the date of this report[76](index=76&type=chunk) [Key Risks and Uncertainties](index=28&type=section&id=Key%20Risks%20and%20Uncertainties) The Group's primary risks include high reliance on the Malaysian and Hong Kong markets and challenges in cost control due to fluctuations in rent, raw material, and staff costs - The Group's revenue primarily originates from Malaysia and Hong Kong, exposing it to adverse economic conditions caused by natural disasters, epidemics, economic downturns, and other events[77](index=77&type=chunk) - Rental expenses, raw material and consumable costs, and staff costs constitute a significant portion of operating costs, with fluctuating food ingredient prices and commercial property lease costs being major uncertainties[77](index=77&type=chunk) [Outlook](index=29&type=section&id=Outlook) The Group is optimistic about the future development of its Malaysian catering business and will continue to explore new business opportunities in Southeast Asia, such as gift, floristry, and event decoration services, to diversify revenue and enhance profitability - The **108.0% revenue growth** reflects the significant success of the Group's strategy to expand into overseas markets, with plans for continued future expansion[78](index=78&type=chunk) - The Group is optimistic about the future development of its Malaysian catering business and believes its restaurants will generate more revenue[78](index=78&type=chunk) - The Group will continue to explore new business opportunities in Southeast Asia, including gift, floristry, and event decoration services, to diversify and stabilize revenue streams, while striving to reduce costs and improve efficiency to achieve profitability[78](index=78&type=chunk) [Corporate Governance and Other Information](index=30&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Directors' and Chief Executive's Interests in Shares, Underlying Shares and Debentures](index=30&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests) As of June 30, 2025, Mr. Chu Ka Fai, Chairman and Executive Director, held a **23.20%** share interest in the Company through JSS Group, which he wholly owns Directors' Interests in the Company's Shares (As of June 30) | Name | Capacity/Nature of Interest | Number of Shares | Approximate Percentage of Holding (%) | | :--- | :--- | :--- | :--- | | Mr. Chu Ka Fai | Interest in controlled corporation | 46,188,800 | 23.20% | - Mr. Chu Ka Fai wholly owns JSS Group Corporation and is therefore deemed to be interested in all shares held by JSS Group[79](index=79&type=chunk) Directors' Interests in Shares of Associated Corporations (As of June 30) | Name | Name of Associated Corporation | Capacity/Nature of Interest | Number of Shares | Approximate Percentage of Holding (%) | | :--- | :--- | :--- | :--- | | Mr. Chu Ka Fai | JSS Group | Beneficial owner | 1,000 | 100% | [Directors' Rights to Acquire Shares or Debentures](index=31&type=section&id=Directors'%20Rights%20to%20Acquire%20Shares%20or%20Debentures) For the six months ended June 30, 2025, neither the Company nor its subsidiaries entered into any arrangements enabling directors to acquire benefits by acquiring shares or debentures - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries entered into any arrangements enabling directors to acquire benefits by acquiring shares or debentures of the Company or any other corporation[81](index=81&type=chunk) [Substantial and Other Shareholders' Interests in Shares and Underlying Shares](index=32&type=section&id=Substantial%20Shareholders'%20Interests) As of June 30, 2025, Lazarus Securities Pty Ltd and JSS Group were substantial shareholders of the Company, each holding a **23.20%** share interest Substantial and Other Shareholders' Interests in the Company's Shares (As of June 30) | Name | Capacity/Nature of Interest | Number of Shares | Approximate Percentage of Holding (%) | | :--- | :--- | :--- | :--- | | Lazarus Securities Pty Ltd | Beneficial owner | 46,188,800 | 23.20% | | JSS Group | Beneficial owner | 46,188,800 | 23.20% | | Hng Bok Chuan | Beneficial owner | 33,177,600 | 16.67% | | Axis Motion Limited | Beneficial owner | 23,040,000 | 11.57% | | Focus Dynamics Group Berhad | Beneficial owner | 19,200,000 | 9.65% | [Purchase, Sale or Redemption of the Company's Listed Securities](index=33&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20Listed%20Securities) For the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities, nor issued or exercised any convertible securities, options, warrants, or similar rights - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[83](index=83&type=chunk) - Neither the Company nor any of its subsidiaries issued or granted any convertible securities, options, warrants, or similar rights, nor were any such rights exercised[83](index=83&type=chunk) [Competing Interests](index=33&type=section&id=Competing%20Interests) As of June 30, 2025, no director or controlling shareholder held any interest in a business that competes with the Group's business - As of June 30, 2025, no director or controlling shareholder of the Company held any interest in a business that directly or indirectly competes with the Group's business[84](index=84&type=chunk) [Corporate Governance](index=33&type=section&id=Corporate%20Governance) The Company has not participated in any activities subject to the continuing disclosure requirements under Rules 17.22 and 17.24 of the GEM Listing Rules - The Company has not participated in any activities subject to the continuing disclosure requirements under Rules 17.22 and 17.24 of the GEM Listing Rules[85](index=85&type=chunk) [Directors' Securities Transactions](index=33&type=section&id=Directors'%20Securities%20Transactions) The Company has adopted a code of conduct for directors' securities transactions and confirmed no non-compliance with the required dealing standards for the six months ended June 30, 2025 - The Company has adopted a code of conduct for directors' securities transactions, with terms no less exacting than the required dealing standards set out in Rules 5.48 to 5.67 of the GEM Listing Rules[86](index=86&type=chunk) - For the six months ended June 30, 2025, there was no instance of non-compliance with the required dealing standards for directors' securities transactions[86](index=86&type=chunk) [Compliance with Corporate Governance Code](index=34&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Company has complied with the Corporate Governance Code, though the roles of Chairman and Chief Executive are combined in Mr. Chu Ka Fai, an arrangement the Board believes is in the Group's best interest and ensures effective execution of business strategies - The Company has complied with the Corporate Governance Code, with a deviation from Code Provision C.2.1, which stipulates that the roles of chairman and chief executive should be separate[87](index=87&type=chunk) - Mr. Chu Ka Fai holds both Chairman and Chief Executive roles, an arrangement the Board believes is in the Group's best interest, helping to maintain and strengthen the Group's philosophy and ensure consistent leadership[87](index=87&type=chunk) - The Board believes that, given its composition of individuals with diverse professional backgrounds and experience, the balance of power and authority is adequately ensured[87](index=87&type=chunk) [Changes in Directors' Biographical Details under GEM Listing Rule 17.50A(1)](index=34&type=section&id=Changes%20in%20Directors'%20Biographical%20Details) For the six months ended June 30, 2025, there were no changes in directors' biographical details requiring disclosure under GEM Listing Rule 17.50A(1), other than those disclosed in this report - For the six months ended June 30, 2025, there were no changes in directors' biographical details requiring disclosure under GEM Listing Rule 17.50A(1)[88](index=88&type=chunk) [Audit and Risk Management Committee](index=35&type=section&id=Audit%20and%20Risk%20Management%20Committee) The Company has established an Audit and Risk Management Committee, comprising three independent non-executive directors, responsible for overseeing compliance, reviewing internal controls, financial reporting, and external auditors, and the committee has reviewed these interim results - The Audit and Risk Management Committee comprises three independent non-executive directors, with Mr. Tang Chiu Ming as Chairman[89](index=89&type=chunk) - Its primary responsibilities include overseeing compliance, reviewing internal controls, risk management, financial reporting, and external auditors[89](index=89&type=chunk) - The Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025, confirming their preparation in compliance with applicable accounting principles and Stock Exchange requirements[89](index=89&type=chunk) [Events After Reporting Period](index=35&type=section&id=Events%20After%20Reporting%20Period) Except as disclosed in Note 16 to the condensed consolidated financial statements, the directors are unaware of any significant events after June 30, 2025, requiring disclosure - Except as disclosed in Note 16 to the condensed consolidated financial statements, the directors are unaware of any significant events occurring after June 30, 2025, and up to the date of this report that require disclosure[90](index=90&type=chunk) [By Order of the Board](index=35&type=section&id=Approval%20by%20the%20Board) This report was issued by Mr. Chu Ka Fai, Chairman and Executive Director of Top Standard Corporation, by order of the Board on August 29, 2025 - This report was issued by Mr. Chu Ka Fai, Chairman and Executive Director of Top Standard Corporation, by order of the Board on August 29, 2025[91](index=91&type=chunk)

中國星集團有限公司 （於百慕達註冊成立之有限公司） （股份代號：326） 香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈全部或任何 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。 截至二零二五年六月三十日止六個月 中期業績公佈 中期業績 中國星集團有限公司（「本公司」）董事會（「董事會」）提呈本公司及其附屬公司（「本 集團」）截至二零二五年六月三十日止六個月之未經審核簡明綜合業績連同比較數 字如下： 1 簡明綜合收入表 截至二零二五年六月三十日止六個月 | | | 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） | （未經審核） | | 收益 | 4 | 256,521 | 193,317 | | 銷售成本 | | (180,130) | (135,376) | | 毛利 | | 76,391 | 57,941 | | 其他收益及其他收入 | 5 | 5,275 ...

[Summary](index=1&type=section&id=%E6%91%98%E8%A6%81) Mega-Info Holdings Limited reported interim results for the six months ended June 30, 2025, with revenue up 7.7% to RMB 70,766,000, but a net loss of approximately RMB 38,575,000, a significant decrease of 9,624.7% from the prior period's profit, and no interim dividend recommended | Metric | Six Months Ended June 30, 2025 (RMB '000) | Six Months Ended June 30, 2024 (RMB '000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 70,766 | 65,733 | 7.7% | | (Loss)/Profit for the Period | (38,575) | 405 | -9,624.7% | - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025[2](index=2&type=chunk) [Condensed Consolidated Financial Statements](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the condensed consolidated financial statements, including the income statement and balance sheet, reflecting the group's financial performance and position [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, group revenue increased by 7.7%, but a significant rise in cost of sales and services, sharp decline in gross profit, and various asset impairment provisions led to a net loss of RMB 38,575,000 for the period, with basic loss per share of RMB 0.074 | Metric | Six Months Ended June 30, 2025 (RMB '000) | Six Months Ended June 30, 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue | 70,766 | 65,733 | | Cost of sales and services | (60,828) | (44,413) | | Gross profit | 9,938 | 21,320 | | Net other income | 3,027 | 4,210 | | Net impairment loss allowance for trade receivables | (616) | (560) | | Impairment loss allowance for property, plant and equipment | (4,868) | – | | Impairment loss allowance for intangible assets | (9,938) | – | | Impairment loss allowance for prepayments | (2,473) | – | | Research and development expenses | (10,201) | (9,034) | | Selling and distribution expenses | (6,946) | (4,222) | | Administrative expenses | (14,244) | (11,155) | | Finance costs | (386) | (130) | | (Loss)/Profit before tax | (36,707) | 429 | | Income tax | (1,868) | (24) | | (Loss)/Profit for the period attributable to owners of the Company | (38,575) | 405 | | Total comprehensive income for the period attributable to owners of the Company | (39,126) | 523 | | (Loss)/Earnings per share – basic and diluted | (RMB 0.074) | RMB 0.001 | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the group's net current assets and total equity both decreased, with total non-current assets slightly down and total current assets declining due to reduced inventories, trade receivables, and cash equivalents, while total current liabilities also decreased, but total non-current liabilities significantly increased due to a substantial rise in lease liabilities | Metric | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | **Non-current assets** | | | | Property, plant and equipment | 6,320 | 11,352 | | Intangible assets | 21,907 | 24,114 | | Total non-current assets | 77,953 | 79,235 | | **Current assets** | | | | Inventories | 31,867 | 33,730 | | Trade receivables | 46,211 | 67,349 | | Cash and cash equivalents | 169,589 | 172,352 | | Total current assets | 296,566 | 330,956 | | **Current liabilities** | | | | Trade payables | 12,945 | 17,963 | | Bank borrowings | 12,000 | 10,000 | | Total current liabilities | 34,562 | 38,609 | | **Non-current liabilities** | | | | Lease liabilities | 8,189 | 141 | | Total non-current liabilities | 8,296 | 795 | | **Equity** | | | | Net assets/Total equity | 331,661 | 370,787 | [Notes to the Condensed Consolidated Interim Financial Statements](index=5&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section provides detailed notes to the condensed consolidated interim financial statements, explaining the accounting policies, significant estimates, and other relevant financial information [General Information](index=5&type=section&id=1.%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) Mega-Info Holdings Limited, incorporated in the Cayman Islands and listed on the Main Board of HKEX, primarily engages in investment holding, with its subsidiaries focusing on R&D, design, development, and sales of compatible printer consumable chips, and trading of integrated circuits and other printer consumable components - The Company was incorporated in the Cayman Islands on June 22, 2016, and listed on the Main Board of the Stock Exchange of Hong Kong[6](index=6&type=chunk) - The Group's principal activities are investment holding, and its subsidiaries are engaged in the research and development, design, development, and sales of compatible printer consumable chips, as well as the trading of integrated circuits and other printer consumable components[6](index=6&type=chunk) [Basis of Preparation](index=5&type=section&id=2.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The condensed consolidated interim financial statements are prepared in accordance with HKAS 34 and HKEX Listing Rules, presented in RMB, and have been reviewed by BDO Limited - The condensed consolidated interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and presented in RMB[7](index=7&type=chunk) - These statements are unaudited but have been reviewed by BDO Limited in accordance with Hong Kong Standard on Review Engagements 2410[8](index=8&type=chunk) [Changes in Accounting Policies](index=6&type=section&id=3.%20%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E8%AE%8A%E5%8B%95) The Group has applied several revised HKFRSs, including amendments to HKAS 21 and HKFRS 1, but these changes have no significant impact on the condensed consolidated interim financial statements - The Group has applied several revised Hong Kong Financial Reporting Standards, including amendments to HKAS 21 and HKFRS 1[9](index=9&type=chunk) - These amendments have no significant impact on the condensed consolidated interim financial statements[12](index=12&type=chunk) [Revenue and Segment Reporting](index=7&type=section&id=4.%20%E6%94%B6%E5%85%A5%E5%8F%8A%E5%88%86%E9%83%A8%E5%A0%B1%E5%91%8A) The Group operates as a single operating segment with all revenue derived from customer contracts; for the six months ended June 30, 2025, chip sales revenue decreased, but trading of integrated circuits and other printer consumable components revenue significantly increased, with a notable rise in overseas customer revenue - The Group has identified one operating segment and no segment information is presented[13](index=13&type=chunk) | Product Category | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Sales of chips | 35,484 | 60,443 | | Trading of integrated circuits and other printer consumable components | 35,282 | 5,290 | | **Total Revenue** | **70,766** | **65,733** | | External Revenue by Customer Location | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | China | 30,225 | 52,331 | | Overseas | 40,541 | 13,402 | | **Total Revenue** | **70,766** | **65,733** | | Non-current Assets by Asset Location | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | China | 32,639 | 29,511 | | Overseas | 620 | 923 | | **Total** | **33,259** | **30,434** | [Net Other Income](index=8&type=section&id=5.%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E6%B7%A8%E9%A1%8D) For the six months ended June 30, 2025, the Group's net other income decreased to RMB 3,027,000, primarily due to reduced government grants and the absence of net exchange gains, but with new gains from derecognition of intangible assets | Net Other Income | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Bank interest income | 1,920 | 2,074 | | Net exchange gains | – | 474 | | Government grants | 58 | 1,619 | | Gain on derecognition of intangible assets | 833 | – | | Miscellaneous income | 216 | 43 | | **Total** | **3,027** | **4,210** | - Government grants mainly include subsidies for the Group's innovation projects and VAT refunds[19](index=19&type=chunk) [(Loss)/Profit Before Tax](index=9&type=section&id=6.%20%E9%99%A4%E7%A8%85%E5%89%8D%EF%BC%88%E虧%E6%90%8D%EF%BC%89%E2%88%95%E5%88%A9%E6%BD%A4) For the six months ended June 30, 2025, the Group shifted from profit to a loss before tax of RMB 36,707,000, primarily impacted by increased cost of inventories sold, amortization of intangible assets, R&D expenses, and various asset impairment provisions | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Carrying amount of inventories sold | 54,138 | 39,256 | | Amortisation of intangible assets | 2,110 | 1,725 | | Depreciation of property, plant and equipment | 1,039 | 1,042 | | Depreciation of right-of-use assets | 1,425 | 788 | | Net impairment loss allowance for trade receivables | 616 | 560 | | Impairment loss allowance for property, plant and equipment | 1,586 | – | | Impairment loss allowance for right-of-use assets | 3,282 | – | | Impairment loss allowance for intangible assets | 9,938 | – | | Impairment loss allowance for prepayments | 2,473 | – | | Research and development expenses (non-staff costs) | 10,201 | 4,594 | | Staff costs | 8,557 | 12,193 | - The Group recognized impairment losses of **RMB 17,279,000** during the period due to intensified competition in the compatible printer consumable chip industry leading to lower gross profit margins[21](index=21&type=chunk) [Income Tax](index=10&type=section&id=7.%20%E6%89%80%E5%BE%97%E7%A8%85) For the six months ended June 30, 2025, the Group's income tax expense significantly increased to RMB 1,868,000, primarily due to the imposition of withholding tax, while its Chinese subsidiary, Zhuhai Mega-Info, enjoys a preferential income tax rate of 15% as a high-tech enterprise | Income Tax Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | PRC Enterprise Income Tax – current year | 114 | 42 | | PRC Enterprise Income Tax – prior years (over)/under provision | (106) | 46 | | Deferred tax – charged/(credited) to profit or loss during the period | 10 | (64) | | Deferred tax – withholding tax | 1,850 | – | | **Income Tax Expense** | **1,868** | **24** | - The increase in income tax expense was mainly due to the imposition of a withholding tax arising from dividends paid by Zhuhai Mega-Info to its direct holding company outside PRC, Hong Kong Mega-Info Technology Co., Limited[24](index=24&type=chunk)[55](index=55&type=chunk) - Zhuhai Mega-Info, a subsidiary of the Group, enjoys a preferential income tax rate of **15%** as a high-tech enterprise during the period[24](index=24&type=chunk) [Dividends](index=10&type=section&id=8.%20%E8%82%A1%E6%81%AF) The Board does not recommend any interim dividend for the six months ended June 30, 2025, following a final dividend of RMB 9,286,000 paid on June 28, 2024, for the year ended December 31, 2023 - The Board does not recommend the payment of any dividends for the six months ended June 30, 2025 and 2024[26](index=26&type=chunk) - On June 28, 2024, the Company paid a final dividend totaling **RMB 9,286,000** to owners for the year ended December 31, 2023[26](index=26&type=chunk) [Basic and Diluted (Loss)/Earnings Per Share](index=11&type=section&id=9.%20%E6%AF%8F%E8%82%A1%E5%9F%BA%E6%9C%AC%E5%8F%8A%E6%94%A4%E8%96%84%EF%BC%88%E虧%E6%90%8D%EF%BC%89%E2%88%95%E7%9B%88%20%E5%88%A9) For the six months ended June 30, 2025, the loss for the period attributable to owners of the Company was RMB 38,575,000, resulting in a basic and diluted loss per share of RMB 0.074, with diluted and basic earnings per share being the same due to the absence of potential dilutive ordinary shares | Metric | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | (Loss)/Profit for the period attributable to owners of the Company | (38,575) | 405 | | Weighted average number of ordinary shares ('000 shares) | 518,750 | 518,750 | | (Loss)/Earnings per share – basic and diluted | (RMB 0.074) | RMB 0.001 | - As there were no potential dilutive ordinary shares for the Group for the six months ended June 30, 2025 and 2024, the diluted and basic earnings per share were the same[28](index=28&type=chunk) [Trade Receivables](index=12&type=section&id=10.%20%E8%B2%A1%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, net trade receivables decreased to RMB 46,211,000, primarily due to reduced turnover in the compatible printer consumable chip business, with the Group offering credit terms of 30 to 120 days | Trade Receivables | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade receivables | 50,958 | 71,477 | | Less: Loss allowance for trade receivables | (4,747) | (4,128) | | **Net** | **46,211** | **67,349** | - All trade receivables are expected to be recovered within one year, with credit terms ranging from **30 to 120 days**[29](index=29&type=chunk) | Ageing Analysis (by invoice date) | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within 90 days | 25,601 | 47,125 | | 91 to 180 days | 12,468 | 10,754 | | Over 180 days | 8,142 | 9,470 | | **Total** | **46,211** | **67,349** | [Trade Payables](index=13&type=section&id=11.%20%E8%B2%A1%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, trade payables decreased to RMB 12,945,000, primarily due to reduced raw material purchases, with supplier credit terms typically ranging from 30 to 60 days | Trade Payables | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade payables | 12,945 | 17,963 | - Credit terms granted by suppliers typically range from **30 to 60 days**[30](index=30&type=chunk) | Ageing Analysis (by invoice date) | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within 30 days | 6,813 | 13,686 | | 31 to 90 days | 4,265 | 1,759 | | Over 90 days | 1,867 | 2,518 | | **Total** | **12,945** | **17,963** | [Share Capital](index=13&type=section&id=12.%20%E8%82%A1%E6%9C%AC) As of June 30, 2025, the number and amount of the Company's issued and fully paid ordinary shares remained unchanged at 518,750,000 shares, totaling RMB 4,325,000 | Number of Shares ('000 shares) | Amount (RMB '000) | | :--- | :--- | | 518,750 | 4,325 | - As of June 30, 2025, the number and amount of issued and fully paid ordinary shares remained consistent with January 1, 2024, and December 31, 2024[32](index=32&type=chunk) [Management Discussion and Analysis](index=14&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) This section provides a comprehensive review of the Group's business operations and financial performance, along with an outlook on future strategies and plans [Business Review](index=14&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group primarily engages in R&D, design, development, and sales of compatible printer consumable chips and IoT-related chips, also providing trading services for integrated circuits and other printer consumable components, facing intense competition in the former and early market development in the latter, with online sales initiated to expand reach - The Group primarily engages in the research and development, design, development, and sales of compatible printer consumable chips (applied in desktop laser, inkjet, and commercial printers) and IoT-related chips (such as Hall sensors, power management ICs, and battery charging management ICs)[33](index=33&type=chunk) - The Group also engages in the trading of integrated circuits and other printer consumable components, and provides chip technology and design services[33](index=33&type=chunk) [Compatible Printer Consumable Chip Business](index=14&type=section&id=%E5%85%BC%E5%AE%B9%E6%89%93%E5%8D%B0%E6%A9%9F%E8%80%97%E6%9D%90%E8%8A%AF%E7%89%87%E6%A5%AD%E5%8B%99) The compatible printer consumable chip business faces intense competition, with sales volume increasing but average selling price dropping significantly by 56.7%, leading to narrower gross margins, and a notable decrease in new R&D chip numbers due to reduced new printer model development by manufacturers - Shipments in China's printer peripheral market decreased by **5.5%** year-on-year in the first half of 2025[34](index=34&type=chunk) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Sales Volume ('000 units) | 7,673 | 7,136 | | Average Selling Price per Chip (RMB) | 3.5 | 8.1 | | YoY Change (Sales Volume) | +7.5% | | | YoY Change (Average Selling Price) | -56.7% | | | Number of Successfully Developed Chips | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Desktop Laser Printers | 59 | 297 | | Desktop Inkjet Printers | 48 | 51 | | Commercial Printers | – | 45 | | **Total** | **107** | **393** | [IoT Chip Business](index=15&type=section&id=%E7%89%A9%E8%81%AF%E7%B6%B2%E8%8A%AF%E7%89%87%E6%A5%AD%E5%8B%99) The Group has developed various IoT chips and products, successfully launching 11 new products, and despite the vast market, this business is in its early stages of production and market development, yet to achieve economies of scale, prompting increased market promotion efforts - The Group has developed a series of IoT chips, including Hall sensor chips, power chips, and battery charging management integrated circuits, and provides IoT solutions[37](index=37&type=chunk) - During the period, **11 new IoT chips and products** were successfully developed, including **4 Low Dropout (LDO) regulator chips**, **3 Silicon Carbide Metal-Oxide-Semiconductor Field-Effect Transistors (SiCMOS)**, and **4 types of IoT smart hardware**[37](index=37&type=chunk) - While the IoT chip market is vast, the Group has just entered this market and is still in the early stages of production and market development, yet to achieve economies of scale[38](index=38&type=chunk) [Trading of Integrated Circuits and Other Printer Consumable Components](index=16&type=section&id=%E8%B2%B7%E8%B3%A3%E9%9B%86%E6%88%90%E9%9B%BB%E8%B7%AF%E5%8F%8A%E5%85%B6%E4%BB%96%E6%89%93%E5%8D%B0%E6%A9%9F%E8%80%97%E6%9D%90%E7%B5%84%E4%BB%B6) The Group trades integrated circuits and other printer consumable components as a complementary service to customers, and launched an online sales business in 2024, selling compatible printer cartridges, toners, and other consumables under the "Baolitong" brand - The Group engages in the trading of integrated circuits and other printer consumable components (including plastic parts and toners) as complementary services provided to customers[39](index=39&type=chunk) - The Group commenced online sales business in 2024, primarily selling compatible printer cartridges, toners, and other finished printer consumables under the "Baolitong" brand[39](index=39&type=chunk) [Financial Review](index=16&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) This period's financial performance shows that despite overall revenue growth, the Group shifted from profit to loss due to a significant decline in gross margin from compatible printer consumable chip business, coupled with increased asset impairment provisions, R&D, selling, and administrative expenses, resulting in reduced net current assets and total equity [Revenue](index=16&type=section&id=%E6%94%B6%E5%85%A5) For the six months ended June 30, 2025, the Group's overall revenue increased by 7.7% to RMB 70.8 million, with sales of compatible printer consumable chips significantly decreasing by 53.4%, while sales of other chips grew by 238.7%, and trading of integrated circuits and other printer consumable components surged by 566.9%, notably with online sales increasing by 60.6% | Product Category | 2025 (RMB '000) | % of Total Revenue | 2024 (RMB '000) | % of Total Revenue | | :--- | :--- | :--- | :--- | :--- | | Sales of compatible printer consumable chips | 26,993 | 38.1 | 57,935 | 88.2 | | Sales of other chips | 8,491 | 12.0 | 2,508 | 3.8 | | Trading of integrated circuits and other printer consumable components | 35,282 | 49.9 | 5,290 | 8.0 | | **Total** | **70,766** | **100** | **65,733** | **100** | - Revenue from sales of compatible printer consumable chips decreased by approximately **53.4%**, mainly due to lower sales revenue from laser printer chips and inkjet printer chips[42](index=42&type=chunk) - Sales of other chips increased by approximately **238.7%**, primarily due to increased sales of Metal-Oxide-Semiconductor Field-Effect Transistors (transistors used to control current)[43](index=43&type=chunk) - Revenue from trading of integrated circuits and other printer consumable components increased by approximately **566.9%**, mainly due to increased sales of compatible printer cartridges and printer consumable components, with online sales growing by **60.6%** to **RMB 3.7 million**[44](index=44&type=chunk) [Cost of Sales and Services](index=18&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E6%9C%8D%E5%8B%99%E6%88%90%E6%9C%AC) For the six months ended June 30, 2025, cost of sales and services increased to RMB 60.8 million, primarily driven by higher direct material costs due to increased sales of integrated circuits and other printer consumable components - Cost of sales and services increased from approximately **RMB 44.4 million** to approximately **RMB 60.8 million**[45](index=45&type=chunk) - The increase was mainly due to higher direct material costs driven by increased sales of integrated circuits and other printer consumable components[45](index=45&type=chunk) [Gross Profit and Gross Profit Margin](index=18&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) The Group's overall gross profit decreased by 53.4% to RMB 9.9 million, with the gross profit margin falling from 32.4% to 14.0%; while the compatible printer consumable chip business saw a significant decline in gross profit and margin, the other chip business improved, but the trading of integrated circuits and other printer consumable components experienced a margin decrease due to a higher proportion of low-margin products | Product Category | 2025 Gross Profit (RMB '000) | 2025 Gross Profit Margin (%) | 2024 Gross Profit (RMB '000) | 2024 Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Sales of compatible printer consumable chips | 6,893 | 25.5 | 20,707 | 35.7 | | Sales of other chips | 1,321 | 15.6 | (117) | (4.7) | | Trading of integrated circuits and other printer consumable components | 1,724 | 4.9 | 730 | 13.8 | | **Total** | **9,938** | **14.0** | **21,320** | **32.4** | - Gross profit from compatible printer consumable chips decreased, mainly due to intense industry competition and sales of lower-margin chips for older printer models[47](index=47&type=chunk) - Gross profit margin for sales of other chips increased due to higher gross profit margins from new IoT chips and products, such as Metal-Oxide-Semiconductor Field-Effect Transistors and temperature and humidity meters[48](index=48&type=chunk) - Gross profit margin for trading of integrated circuits and other printer consumable components decreased, mainly due to a higher proportion of lower-margin printer consumable components in sales[49](index=49&type=chunk) [Net Other Income](index=19&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E6%B7%A8%E9%A1%8D) For the six months ended June 30, 2025, net other income decreased by 28.1% to RMB 3.0 million, primarily due to delayed government grants - Net other income decreased by approximately **28.1%** from approximately **RMB 4.2 million** to approximately **RMB 3.0 million**[50](index=50&type=chunk) - The decrease was mainly due to delayed government grants[50](index=50&type=chunk) [Impairment Loss Allowance for Assets](index=20&type=section&id=%E8%B3%87%E7%94%A2%E6%B8%9B%E5%80%BC%E虧%E6%90%8D%E6%92%A5%E5%82%99) Due to operating losses, the Group recognized impairment loss allowances for property, plant and equipment, intangible assets, and prepayments during the period, totaling approximately RMB 17.3 million | Impairment Loss Allowance Item | 2025 (RMB million) | | :--- | :--- | | Property, plant and equipment | 4.9 | | Intangible assets | 9.9 | | Prepayments | 2.5 | | **Total** | **17.3** | [Research and Development Expenses](index=20&type=section&id=%E7%A0%94%E7%99%BC%E9%96%8B%E6%94%AF) Research and development expenses increased by 12.9% to RMB 10.2 million, primarily due to the recognition of more R&D expenses upon completion of IoT projects - Research and development expenses increased by approximately **12.9%** from approximately **RMB 9.0 million** to approximately **RMB 10.2 million**[52](index=52&type=chunk) - The increase was mainly due to the recognition of more research and development expenses upon completion of IoT projects[52](index=52&type=chunk) [Selling and Distribution Expenses](index=20&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E5%88%86%E9%8A%B7%E9%96%8B%E6%94%AF) Selling and distribution expenses increased by 64.5% to RMB 6.9 million, primarily due to increased marketing activities and hiring of more marketing staff to strengthen new business developments such as IoT chips and online sales - Selling and distribution expenses increased by approximately **64.5%** from approximately **RMB 4.2 million** to approximately **RMB 6.9 million**[53](index=53&type=chunk) - The increase was mainly due to more marketing activities to strengthen the Group's new business developments, such as IoT chips and online sales, and the hiring of more marketing staff[53](index=53&type=chunk) [Administrative Expenses](index=20&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) Administrative expenses increased by 27.7% to RMB 14.2 million, primarily due to the change of China headquarters and the write-off of raw material costs - Administrative expenses increased by approximately **27.7%** from approximately **RMB 11.2 million** to approximately **RMB 14.2 million**[54](index=54&type=chunk) - The increase was mainly due to the change of China headquarters and the write-off of raw material costs[54](index=54&type=chunk) [Income Tax Expense](index=20&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense significantly increased by 7,683.3% to RMB 1.9 million, primarily due to the imposition of withholding tax arising from dividends paid by Zhuhai Mega-Info to its Hong Kong holding company - Income tax expense increased by approximately **7,683.3%** from approximately zero to approximately **RMB 1.9 million**[55](index=55&type=chunk) - The increase was due to the imposition of a withholding tax arising from dividends paid by Zhuhai Mega-Info to its direct holding company outside PRC, Hong Kong Mega-Info Technology Co., Limited[55](index=55&type=chunk) [Net Profit and Net Profit Margin](index=20&type=section&id=%E7%B4%94%E5%88%A9%E5%8F%8A%E7%B4%94%E5%88%A9%E7%8E%87) The Group recorded a net loss attributable to owners of the Company of approximately RMB 38.6 million for the period, with the net profit margin turning from 0.6% to negative 54.5%, primarily due to reduced gross profit from the compatible printer consumable chip business and increased other expenses - The Group recorded a net loss attributable to owners of the Company of approximately **RMB 38.6 million** for the period, compared to a net profit attributable to owners of the Company of approximately **RMB 0.4 million** in the corresponding period of 2024[56](index=56&type=chunk) - The net profit margin turned from **0.6%** for the six months ended June 30, 2024, to **negative 54.5%** for the period[56](index=56&type=chunk) - This was mainly due to reduced gross profit from the compatible printer consumable chip business and increased other expenses[56](index=56&type=chunk) [Net Current Assets](index=21&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E7%94%A2%E6%B7%A8%E5%80%BC) As of June 30, 2025, net current assets decreased to RMB 262.0 million, primarily due to reductions in inventories, trade receivables, bank deposits, and cash equivalents, despite a decrease in current liabilities | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Net current assets | 262.0 | 292.3 | | Current assets | 296.6 | 331.0 | | Current liabilities | 34.6 | 38.6 | - The decrease in current assets was mainly due to reductions in inventories, trade receivables, bank deposits, and cash and cash equivalents[57](index=57&type=chunk) - The decrease in current liabilities was mainly due to reductions in trade payables, accrued expenses, and other payables[57](index=57&type=chunk) [Property, Plant and Equipment](index=21&type=section&id=%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99) The net book value of property, plant and equipment decreased from approximately RMB 11.4 million as of December 31, 2024, to approximately RMB 6.3 million as of June 30, 2025, despite an increase in right-of-use assets due to a new office lease | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Net book value of property, plant and equipment | 6.3 | 11.4 | - The net book value of property, plant and equipment decreased, despite an increase in right-of-use assets due to the entering into of a new office lease[58](index=58&type=chunk) [Intangible Assets](index=21&type=section&id=%E7%84%A1%E5%BD%A2%E8%B3%87%E7%94%A2) The net book value of intangible assets decreased to RMB 21.9 million, primarily due to asset impairment provisions | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Net book value of intangible assets | 21.9 | 24.1 | - The decrease was mainly due to asset impairment provisions[59](index=59&type=chunk) [Inventories](index=21&type=section&id=%E5%AD%98%E8%B2%A8) Inventories slightly decreased to RMB 31.9 million, primarily due to reducing inventory amounts to their estimated net realizable value | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Inventories | 31.9 | 33.7 | - The decrease was mainly due to reducing inventory amounts to their estimated net realizable value[60](index=60&type=chunk) [Trade Receivables](index=21&type=section&id=%E8%B2%A1%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) Trade receivables decreased to RMB 46.2 million, primarily due to reduced turnover in the compatible printer consumable chip business | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Trade receivables | 46.2 | 67.3 | - The decrease was mainly due to reduced turnover in the compatible printer consumable chip business[61](index=61&type=chunk) [Deposits, Prepayments and Other Receivables](index=21&type=section&id=%E6%8C%89%E9%87%91%E3%80%81%E9%A0%90%E4%BB%98%E6%AC%BE%E9%A0%85%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) Deposits, prepayments, and other receivables increased to RMB 27.7 million, primarily due to prepayments for new office renovation | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Deposits, prepayments and other receivables | 27.7 | 26.8 | - The increase was mainly due to prepayments for new office renovation[62](index=62&type=chunk) [Trade Payables](index=21&type=section&id=%E8%B2%A1%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) Trade payables decreased to RMB 12.9 million, primarily due to reduced raw material purchases | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Trade payables | 12.9 | 18.0 | - The decrease was mainly due to reduced raw material purchases[63](index=63&type=chunk) [Outlook and Future Plans](index=22&type=section&id=%E5%B1%95%E6%9C%9B%E5%8F%8A%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) The Group anticipates an uncertain economic outlook and continued price pressure from intense competition in the compatible printer consumable chip industry, thus it will advance its IoT business development strategy, leverage R&D to expand its business footprint, and diversify sales platforms through online stores for overseas markets, with no significant investment or acquisition plans for capital assets as of June 30, 2025 - The pace of China's economic development, the Sino-US trade dispute, regional military conflicts, and interest rate trends are expected to continue to affect global economic development, indirectly impacting the demand for compatible printer consumable chips[65](index=65&type=chunk) - Excessive competition among compatible printer consumable chip manufacturers will continue to depress the selling prices of compatible printer consumable chips[65](index=65&type=chunk) - The Group will continue to promote its IoT business development strategy, leverage its R&D capabilities to expand its business footprint, and has established online stores to diversify its sales platforms and sell products overseas[66](index=66&type=chunk) - As of June 30, 2025, the Group had no plans for any significant investments or acquisitions of capital assets[67](index=67&type=chunk) [Other Financial Information](index=23&type=section&id=%E5%85%B6%E4%BB%96%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99) This section covers additional financial details, including liquidity, capital structure, asset pledges, contingent liabilities, and human resources, offering a comprehensive view of the Group's financial health and operational aspects [Liquidity and Financial Resources](index=23&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) The Group primarily funds its operations through cash generated from operations, debt financing, and proceeds from its listing; as of June 30, 2025, cash and cash equivalents and bank deposits decreased, as did net current assets and net assets, but the directors believe the Group has sufficient working capital for the next 12 months - The Group primarily funds its operations through cash generated from operations, debt financing, and proceeds from its listing[68](index=68&type=chunk) | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Cash and cash equivalents | 169.6 | 172.4 | | Bank deposits | 60.0 | 70.0 | | Net current assets | 262.0 | 292.3 | | Net assets | 331.7 | 370.8 | - The Directors believe that the Group has sufficient working capital to meet its liquidity requirements for the current period and at least the next **12 months**[68](index=68&type=chunk) [Capital Structure](index=23&type=section&id=%E8%B3%87%E6%9C%AC%E7%B5%90%E6%A7%8B) As of June 30, 2025, the Group's total bank borrowings increased to RMB 12 million, and the gearing ratio rose to 3.6%, which, despite the increase, remains low, indicating a sound financial position | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Total bank borrowings | 12.0 | 10.0 | | Gearing ratio | 3.6% | 2.7% | - Bank borrowings are denominated in RMB, interest-bearing, and unsecured, and the Group has not encountered any difficulties in utilizing its credit bank financing[69](index=69&type=chunk) - The increase in the gearing ratio was mainly due to the Group's increased bank borrowings for working capital needs during the period, but the low level of borrowings indicates a sound financial position[70](index=70&type=chunk) [Pledge of Assets](index=24&type=section&id=%E8%B3%87%E7%94%A2%E8%B3%AA%E6%8A%BC) As of June 30, 2025, the Group had not pledged any of its assets - As of June 30, 2025, the Group had not pledged any of its assets[71](index=71&type=chunk) [Contingent Liabilities](index=24&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025 and 2024, the Group had no significant contingent liabilities - As of June 30, 2025 and 2024, the Group had no significant contingent liabilities[72](index=72&type=chunk) [Material Acquisitions and Disposals by the Group](index=24&type=section&id=%E6%9C%AC%E9%9B%86%E5%9C%98%E7%9A%84%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE) During the period, the Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures - During the period, the Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures[73](index=73&type=chunk) [Material Investments](index=24&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) As of June 30, 2025, the Group did not hold any material investments - As of June 30, 2025, the Group did not hold any material investments[74](index=74&type=chunk) [Foreign Exchange Risk](index=24&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) Most of the Group's assets, liabilities, and cash flows are denominated in RMB, with some assets in USD or HKD, exposing it to exchange rate fluctuations between RMB and USD or HKD; no hedging activities were undertaken during the period, nor are any intended in the near future - Most of the Group's assets, liabilities, and cash flows are denominated in RMB, while some assets, such as cash and cash equivalents and trade receivables, are denominated in USD or HKD[75](index=75&type=chunk) - During the period, changes in the exchange rates of RMB against USD or HKD did not result in any significant translation impact[75](index=75&type=chunk) - During the period, the Group did not engage in any hedging activities, nor does it intend to do so in the near future[75](index=75&type=chunk) [Human Resources](index=24&type=section&id=%E4%BA%BA%E5%8A%9B%E8%B3%87%E6%BA%90) As of June 30, 2025, the Group had approximately 157 full-time employees and implements various HR policies, including onboarding and regular training, and incentivizes staff through remuneration, bonuses, pension schemes, and share option plans - As of June 30, 2025, the Group had approximately **157 full-time employees**, with **142 based in China** and **15 based in Taiwan and Hong Kong**[76](index=76&type=chunk) - The Group provides new employees with onboarding orientation and regular training, and has adopted a share option scheme as part of its incentive program[76](index=76&type=chunk) [Dividends](index=24&type=section&id=%E8%82%A1%E6%81%AF) The Board 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 six months ended June 30, 2025[77](index=77&type=chunk) [Other Information](index=25&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) This section covers additional disclosures, including directors' and substantial shareholders' interests, share option schemes, corporate governance practices, and other relevant information [Disclosure of Interests](index=25&type=section&id=%E6%AC%8A%E7%9B%8A%E6%8A%AB%E9%9C%B2) As of June 30, 2025, Mr. Zheng and Mr. Lin, as directors and chief executives, held shares in the Company, while major shareholders including GMTL (wholly owned by Mr. Zheng), Zhonghao (wholly owned by Mr. Yu), and Mr. Lin held 10% or more interests in the Company | Director's Name | Capacity/Nature of Interest | Number of Shares (L) | Approximate % of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Zheng | Interest of controlled corporation | 151,812,500 | 29.27% | | Mr. Lin | Beneficial owner | 86,250,000 | 16.63% | | Shareholder Name | Capacity/Nature of Interest | Number of Shares (L) | Approximate % of Shareholding | | :--- | :--- | :--- | :--- | | GMTL | Beneficial owner | 151,812,500 | 29.27% | | Mr. Zheng | Interest of controlled corporation | 151,812,500 | 29.27% | | Zhonghao | Beneficial owner | 97,500,000 | 18.80% | | Mr. Yu | Interest of controlled corporation | 97,500,000 | 18.80% | | Mr. Lin | Beneficial owner | 86,250,000 | 16.63% | [Share Option Scheme](index=27&type=section&id=%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) The Company adopted a share option scheme on February 26, 2021, to grant options to eligible persons to subscribe for shares, but no options have been granted under the scheme since its adoption - The Company conditionally adopted a share option scheme on February 26, 2021, to offer the grant of share options to eligible persons to subscribe for shares[83](index=83&type=chunk) - No share options have been granted by the Company under the share option scheme since its adoption[84](index=84&type=chunk) [Arrangements for Directors to Purchase Shares or Debentures](index=27&type=section&id=%E8%91%A3%E4%BA%8B%E8%B3%BC%E8%B2%B7%E8%82%A1%E4%BB%BD%E6%88%96%E5%82%B5%E6%AC%8A%E8%AD%89%E7%9A%84%E5%AE%89%E6%8E%92) During the period, no directors or their associates were granted or exercised any rights to acquire benefits by purchasing shares or debentures of the Company, nor did the Company enter into any such arrangements - During the period, no directors or their respective spouses or minor children were granted any rights to acquire benefits by purchasing shares or debentures of the Company, nor did they exercise such rights[85](index=85&type=chunk) - Neither the Company, its holding company, nor any of its subsidiaries entered into any arrangements that would enable directors to acquire benefits by purchasing shares or debt securities of the Company or any other corporation[85](index=85&type=chunk) [Interests of Directors and Substantial Shareholders in Competing Businesses](index=28&type=section&id=%E8%91%A3%E4%BA%8B%E8%88%87%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E6%96%BC%E7%AB%B6%E7%88%AD%E6%AC%8A%E7%9B%8A%E7%9A%84%E6%AC%8A%E7%9B%8A) During the period, no directors or their close associates (other than members of the Group) disclosed any interests in businesses that compete or might directly or indirectly compete with the Group's business - During the period, no directors or their respective close associates (other than members of the Group) were required to disclose any interests in businesses that compete or might directly or indirectly compete with the Group's business under Rule 8.10 of the Listing Rules[86](index=86&type=chunk) [Sufficiency of Public Float](index=28&type=section&id=%E8%B6%B3%E5%A4%A0%E7%9A%84%E5%85%AC%E7%9C%BE%E6%8C%81%E8%82%A1%E9%87%8F) During the period, the Company maintained the public float as required by the Listing Rules - During the period, the Company maintained the public float as required by the Listing Rules[87](index=87&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=28&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[88](index=88&type=chunk) [Going Concern](index=28&type=section&id=%E6%8C%81%E7%BA%8C%E7%B6%93%E7%87%9F) Based on its current financial position and available financing, the Group has sufficient financial resources to continue operating as a going concern for the foreseeable future, thus the financial statements have been prepared on a "going concern" basis - Based on its current financial position and available financing, the Group has sufficient financial resources to continue operating as a going concern for the foreseeable future[89](index=89&type=chunk) - The financial statements in this announcement have been prepared on a "going concern" basis[89](index=89&type=chunk) [Use of Net Proceeds from Listing](index=28&type=section&id=%E4%B8%8A%E5%B8%82%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%8D%E6%B7%A8%E9%A1%8D%E7%94%A8%E9%80%94) The Group received net proceeds of approximately RMB 98.5 million from its global offering; as of June 30, 2025, approximately RMB 30.5 million of unutilized net proceeds remained, with their expected utilization period extended and some uses changed to adapt to market conditions and business development strategies - The Group received net proceeds of approximately **HK$118 million** (approximately **RMB 98.5 million**) from its global offering and the exercise of the over-allotment option[90](index=90&type=chunk) - The unutilized net proceeds from the global offering as of December 31, 2024, amounted to approximately **HK$47.3 million**[91](index=91&type=chunk) | Intended Use of Net Proceeds from Global Offering | Allocation Disclosed in Prospectus (RMB million) | Revised Allocation of Unutilized Net Proceeds (RMB million) | Actual Amount Utilized as of June 30, 2025 (RMB million) | Unutilized Net Proceeds as of June 30, 2025 (RMB million) | | :--- | :--- | :--- | :--- | :--- | | Strengthening the Group's product development capabilities and product diversification | 50.7 | 9.5 | 9.0 | 0.5 | | Acquisition of integrated circuit design companies | 16.6 | – | – | – | | Expanding the compatible printer consumable industry footprint through forward vertical expansion | 16.6 | – | – | – | | Expanding the compatible printer consumable industry footprint through online channels | – | 30.3 | 3.3 | 27.0 | | Strengthening sales and marketing efforts | 2.5 | – | – | – | | Strengthening back-office functions | 2.5 | – | – | – | | General working capital | 9.9 | 4.0 | 1.0 | 3.0 | | **Total** | **98.5** | **43.8** | **13.3** | **30.5** | [Corporate Governance Practices](index=30&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A6%8F) The Board is committed to adhering to the Corporate Governance Code and has adopted various measures to enhance internal control systems, ongoing professional training for directors, and other standard practices, with the Company complying with the code provisions in Appendix C1 of the Listing Rules during the period - The Board is committed to adhering to the corporate governance principles set out in the Corporate Governance Code contained in Appendix C1 of the Listing Rules[93](index=93&type=chunk) - During the period, the Company complied with the code provisions set out in Appendix C1 of the Listing Rules[94](index=94&type=chunk) [Standard Code for Securities Transactions](index=30&type=section&id=%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules, and all directors have confirmed full compliance with the code during the period - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules[95](index=95&type=chunk) - All Directors have confirmed that they have fully complied with the required dealing standards set out in the Model Code throughout the period[95](index=95&type=chunk) [Review by Audit Committee](index=31&type=section&id=%E7%B6%93%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83%E5%AF%A9%E9%96%B1) The Audit Committee, established on February 26, 2021, and comprising three independent non-executive directors, has reviewed the Company's unaudited financial statements, interim results announcement, and interim report for the period, confirming that its accounting treatments comply with applicable standards and Listing Rules - The Audit Committee was established on February 26, 2021, with three members, all of whom are independent non-executive directors, and Mr. Li Wah Hung is the chairman[96](index=96&type=chunk) - The Audit Committee has reviewed the Company's unaudited financial statements, interim results announcement, and interim report for the period, and has confirmed that the accounting treatments adopted by the Company comply with applicable standards and Listing Rules[96](index=96&type=chunk) [Events After the Reporting Period](index=31&type=section&id=%E6%9C%89%E9%97%9C%E6%9C%9F%E9%96%93%E5%BE%8C%E7%9A%84%E4%BA%8B%E9%A0%85) There have been no significant events after the reporting period up to the date of this announcement - There have been no significant events after the reporting period up to the date of approval of this announcement[97](index=97&type=chunk) [Definitions](index=32&type=section&id=%E9%87%8B%E7%BE%A9) This section provides definitions for key terms and abbreviations used in this announcement to ensure readers have a clear understanding of the report's content

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。 1 公司基本情況簡介 1.1 基本情況簡介 股票名稱： 中國中鐵（A股） 中國中鐵（H股） 股票代碼： 601390 390 股票上市交易所： 上海證券交易所 香港聯合交易所有限公司 註冊地址： 中國北京市豐台區南四環西路128號院1號樓918 郵政編碼： 100070 網址： www.crec.cn 電子郵件： ir@crecg.com - 1 - 1.2 聯繫方式 | 姓名： | 馬永紅（董事會秘書） | 段銀華（證券事務代表） | | --- | --- | --- | | 地址： | 中國北京市海淀區復興路69號中國中鐵廣場A座 | | | 郵政編碼： | 100039 | | | 電話： | 86-10-5187 8413 | | | 傳真： | 86-10-5187 8417 | | | 電子郵件： | ir@crecg.com | dyh@crecg.com | 2 財務摘要 本中期業績公 ...

[Company Information and Performance Overview](index=1&type=section&id=Company%20Information%20and%20Performance%20Overview) This section provides an overview of the Group's financial performance and position, highlighting key changes in income, expenses, assets, and liabilities [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's revenue and profit significantly decreased, primarily due to weak domestic consumer demand. Revenue decreased by 21.8% year-on-year, profit for the period decreased by 25.8%, and basic earnings per share fell to RMB 3.55 cents Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (RMB thousands) | Indicator | 2025 (Unaudited) | 2024 (Unaudited) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 153,886 | 196,868 | -21.8% | | Cost of Sales | (93,552) | (118,480) | -21.0% | | Gross Profit | 60,334 | 78,388 | -23.1% | | Other Income | 2,115 | 920 | +130.0% | | Selling and Distribution Expenses | (2,267) | (2,377) | -4.6% | | Administrative and Other Operating Expenses | (14,385) | (18,717) | -23.1% | | Finance Costs | (3,440) | (1,745) | +97.1% | | Profit Before Tax | 42,357 | 56,469 | -25.0% | | Income Tax Expense | (6,599) | (8,261) | -20.2% | | **Profit for the Period** | **35,758** | **48,208** | **-25.8%** | | Basic Earnings Per Share Attributable to Owners of the Company (RMB cents) | 3.55 | 4.78 | -25.7% | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's non-current assets significantly increased by 203%, primarily due to construction in progress for a new production base and land acquisition. Concurrently, non-current liabilities surged by nearly 50 times due to increased interest-bearing borrowings, leading to a modest increase in total net assets and total equity Condensed Consolidated Statement of Financial Position (RMB thousands) | Indicator | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current Assets | 370,819 | 122,412 | +203.0% | | Current Assets | 520,525 | 568,192 | -8.4% | | Current Liabilities | 134,534 | 127,100 | +5.8% | | Net Current Assets | 385,991 | 441,092 | -12.5% | | Total Assets Less Current Liabilities | 756,810 | 563,504 | +34.3% | | Non-current Liabilities | 158,993 | 3,148 | +4950.0% | | **Net Assets** | **597,817** | **560,356** | **+6.7%** | | **Total Equity** | **597,817** | **560,356** | **+6.7%** | - Non-current assets significantly increased, primarily due to growth in property, plant and equipment (construction in progress) and right-of-use assets[6](index=6&type=chunk) - Non-current liabilities substantially increased, mainly due to a significant rise in interest-bearing borrowings[7](index=7&type=chunk) [Notes to the Financial Statements](index=5&type=section&id=Notes%20to%20the%20Financial%20Statements) This section details the Group's accounting policies, segment information, and specific breakdowns of revenue, expenses, and balance sheet items [1. Company Information and Basis of Preparation](index=5&type=section&id=1.%20Company%20Information%20and%20Basis%20of%20Preparation) Zhongbao New Material Group Co., Ltd. was incorporated in the Cayman Islands in 2022 and listed on the Hong Kong Stock Exchange in 2023, primarily engaged in the development and production of biodegradable plastic products and non-biodegradable automotive plastic components in China. This interim report adopts accounting policies consistent with the 2024 annual report, with no significant impact from new standards - The Company was incorporated in the Cayman Islands on January 21, 2022, and listed on the Main Board of The Stock Exchange of Hong Kong on March 31, 2023[8](index=8&type=chunk) - The Group is principally engaged in the development and production of biodegradable plastic products and non-biodegradable automotive plastic components in China[8](index=8&type=chunk) - The ultimate controlling parties are Ms. Zhang Yuqiu and Mr. Shan Yuzhu[9](index=9&type=chunk) [2. Principal Accounting Policies](index=5&type=section&id=2.%20Principal%20Accounting%20Policies) The accounting policies applied in the Group's interim financial statements are consistent with those used in the 2024 financial statements, and newly adopted IFRS and amendments have no significant impact on the financial position and performance for the period - The accounting policies and methods of computation used in the preparation of the interim financial statements are consistent with those applied in the preparation of the 2024 financial statements[11](index=11&type=chunk) - The new/revised International Financial Reporting Standards (IFRS) accounting standards applied for the first time during this interim period had no significant impact on the Group's financial position and performance[12](index=12&type=chunk)[13](index=13&type=chunk) [3. Segment Information](index=6&type=section&id=3.%20Segment%20Information) The Group's operating segments include biodegradable plastic products and non-biodegradable automotive plastic components. Biodegradable plastic products are the primary revenue source, but both segments experienced a decline in revenue and performance this period. Almost all revenue, assets, and liabilities originate from China [Segment Revenue and Results](index=6&type=section&id=Segment%20Revenue%20and%20Results) For the six months ended June 30, 2025, the biodegradable plastic products segment generated RMB 143.9 million in revenue, while the non-biodegradable automotive plastic components segment generated RMB 9.98 million, with both segments experiencing a year-on-year decline in revenue Segment Revenue and Results (RMB thousands) | Indicator | June 30, 2025 (Unaudited) | June 30, 2024 (Unaudited) | | :--- | :--- | :--- | | **Development and Manufacturing of Biodegradable Plastic Products** | | | | Segment Revenue | 143,910 | 183,776 | | Segment Cost of Sales | (87,550) | (110,761) | | Segment Results | 56,360 | 73,015 | | **Development and Manufacturing of Non-biodegradable Automotive Plastic Components** | | | | Segment Revenue | 9,976 | 13,092 | | Segment Cost of Sales | (6,002) | (7,719) | | Segment Results | 3,974 | 5,373 | | **Total** | | | | Segment Revenue | 153,886 | 196,868 | | Segment Results (Gross Profit) | 60,334 | 78,388 | [Segment Assets and Liabilities](index=9&type=section&id=Segment%20Assets%20and%20Liabilities) As of June 30, 2025, the biodegradable plastic products segment had assets of RMB 374.3 million and liabilities of RMB 40.5 million. The non-biodegradable automotive plastic components segment had assets of RMB 30.3 million and liabilities of RMB 0.34 million. Both total assets and total liabilities increased compared to the end of 2024 Segment Assets and Liabilities (RMB thousands) | Indicator | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | **Development and Manufacturing of Biodegradable Plastic Products** | | | | Reportable Segment Assets | 374,316 | 142,426 | | Reportable Segment Liabilities | 40,483 | 40,471 | | Capital Expenditure | 146,710 | 3,322 | | **Development and Manufacturing of Non-biodegradable Automotive Plastic Components** | | | | Reportable Segment Assets | 30,282 | 36,032 | | Reportable Segment Liabilities | 342 | 1,009 | | Capital Expenditure | – | 62 | | **Total** | | | | Reportable Segment Assets | 891,344 | 690,604 | | Reportable Segment Liabilities | 293,527 | 130,248 | | Capital Expenditure | 146,710 | 34,635 | [Geographical Information](index=10&type=section&id=Geographical%20Information) All the Group's revenue from external customers and almost all assets and liabilities are located in China - For the six months ended June 30, 2025 and 2024, all the Group's revenue from external customers was derived from China[21](index=21&type=chunk) - Almost all the Group's assets and liabilities are located in China[21](index=21&type=chunk) [Major Customer Information](index=10&type=section&id=Major%20Customer%20Information) Customer A is one of the Group's major customers, with its contribution from biodegradable plastic products declining in the first half of 2025 Major Customer Revenue (RMB thousands) | Customer | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Customer A (Development and Manufacturing of Biodegradable Plastic Products) | 21,179 | 28,171 | [4. Revenue](index=10&type=section&id=4.%20Revenue) During the period, the Group's total revenue was RMB 153.9 million, a 21.8% decrease from RMB 196.9 million in the prior period, primarily due to weak domestic consumer demand and a shift in shopping habits towards online purchases, resulting in reduced orders from existing customers like chain supermarkets Revenue Composition (RMB thousands) | Product Category | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Development and Production of Biodegradable Plastic Products | 143,910 | 183,776 | | Development and Production of Non-biodegradable Automotive Plastic Components | 9,976 | 13,092 | | **Total Revenue** | **153,886** | **196,868** | [5. Other Income](index=10&type=section&id=5.%20Other%20Income) Other income significantly increased by 133.3% to RMB 2.1 million during the period, primarily benefiting from increased government grants and the recovery of previously written-off receivables Other Income (RMB thousands) | Item | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Interest Income | 645 | 525 | | Government Grants | 925 | 395 | | Recovery of written-off receivables | 545 | – | | **Total** | **2,115** | **920** | - The increase in other income was mainly due to increased government grants (from **RMB 0.4 million** to **RMB 0.9 million**) and the recognition of recovered written-off receivables (**RMB 0.5 million**)[56](index=56&type=chunk) [6. Components of Profit Before Tax](index=11&type=section&id=6.%20Components%20of%20Profit%20Before%20Tax) During the period, finance costs doubled due to increased interest-bearing borrowings, while staff costs and R&D expenses decreased, and depreciation of property, plant and equipment increased Items Deducted from Profit Before Tax (RMB thousands) | Item | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | **Finance Costs** | | | | Interest on bank loans | 3,440 | 1,492 | | Interest on lease liabilities | – | 253 | | **Staff Costs** | | | | Salaries, discretionary bonuses, allowances and other benefits in kind | 4,070 | 5,752 | | Contributions to defined contribution plans | 1,354 | 1,344 | | **Other Items** | | | | Cost of inventories | 92,476 | 117,331 | | Amortisation of intangible assets | 5 | 5 | | Depreciation of property, plant and equipment | 6,678 | 5,053 | | Depreciation of right-of-use assets | 201 | 2,280 | | Research and development expenses | 6,354 | 12,107 | | Short-term lease expenses recognised | 862 | 90 | | Net allowance for (reversal of) loss allowance for trade receivables | (191) | 42 | - Finance costs increased by approximately **100%** year-on-year, primarily due to an increase in the balance of interest-bearing borrowings[24](index=24&type=chunk)[59](index=59&type=chunk) - Research and development expenses decreased by approximately **RMB 5.7 million**, mainly due to the reduction in R&D projects in collaboration with Changchun Institute of Applied Chemistry as major projects were completed in 2024[58](index=58&type=chunk) [7. Taxation](index=12&type=section&id=7.%20Taxation) The Group's income tax expense decreased by 20.5% year-on-year to RMB 6.6 million, primarily due to a decline in profit before tax. Jilin Kaishun, as a high-tech enterprise, enjoys a preferential tax rate of 15% Income Tax Expense (RMB thousands) | Item | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Current tax - PRC Enterprise Income Tax | 6,658 | 8,241 | | Deferred tax - Changes in temporary differences | (59) | 20 | | **Total income tax expense for the period** | **6,599** | **8,261** | - The decrease in income tax expense was mainly due to a reduction in profit before tax[60](index=60&type=chunk) - Jilin Kaishun New Material Co., Ltd., as a high-tech enterprise, enjoys a preferential tax rate of **15%**, with this qualification approved until December 31, 2026[29](index=29&type=chunk) [8. Earnings Per Share](index=13&type=section&id=8.%20Earnings%20Per%20Share) For the six months ended June 30, 2025, basic earnings per share attributable to owners of the Company was RMB 3.55 cents, a decrease from RMB 4.78 cents in the prior period. Diluted earnings per share is the same as basic earnings per share due to the absence of dilutive potential ordinary shares Earnings Per Share (RMB thousands/share) | Indicator | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Profit attributable to owners of the Company for the purpose of calculating basic earnings per share | 35,534 | 47,834 | | Weighted average number of ordinary shares for the purpose of calculating basic earnings per share | 1,000,000,000 | 1,000,000,000 | | **Basic Earnings Per Share Attributable to Owners of the Company (RMB cents)** | **3.55** | **4.78** | - As there were no dilutive potential ordinary shares for the six months ended June 30, 2025 and 2024, diluted earnings per share was the same as basic earnings per share[30](index=30&type=chunk) [9. Dividends](index=13&type=section&id=9.%20Dividends) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 and 2024 - The directors of the Company do not recommend the payment of an interim dividend for the six months ended June 30, 2025 and 2024[31](index=31&type=chunk) [10. Property, Plant and Equipment](index=13&type=section&id=10.%20Property,%20Plant%20and%20Equipment) As of June 30, 2025, the Group's property, plant and equipment significantly increased, primarily due to total construction in progress costs of approximately RMB 136.7 million - For the six months ended June 30, 2025, the Group's total construction in progress costs were approximately **RMB 136,734,000** (2024: nil)[32](index=32&type=chunk) [11. Trade and Other Receivables](index=14&type=section&id=11.%20Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables decreased by 22.2% to RMB 95.9 million, primarily due to lower trade receivables from reduced revenue, partially offset by increased VAT from significant capital expenditures Trade and Other Receivables (RMB thousands) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Trade receivables (from third parties, net of loss allowance) | 77,994 | 114,405 | | Other receivables (prepayments, other deposits and receivables, VAT and other recoverable taxes) | 17,881 | 8,909 | | **Total** | **95,875** | **123,314** | Ageing Analysis of Trade Receivables (Net of loss allowance, RMB thousands) | Ageing | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Within 30 days | 27,151 | 43,776 | | 31 to 60 days | 26,514 | 37,771 | | 61 to 90 days | 24,329 | 30,280 | | Over 90 days | – | 2,578 | | **Total** | **77,994** | **114,405** | - Trade and other receivables decreased primarily due to a reduction of approximately **RMB 36.4 million** in trade receivables from lower revenue, partially offset by an increase of approximately **RMB 11.5 million** in input VAT due to significant capital expenditures[66](index=66&type=chunk) [12. Trade and Other Payables](index=15&type=section&id=12.%20Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables decreased by 3.3% to RMB 52.4 million, mainly due to reductions in trade payables, salaries payable, and accrued expenses, partially offset by an increase in the amount due to a director Trade and Other Payables (RMB thousands) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Trade payables (due to third parties) | 40,825 | 41,480 | | Other payables (salaries payable, VAT and other taxes payable, amount due to a director, accrued expenses and other payables) | 11,615 | 12,697 | | **Total** | **52,440** | **54,177** | Ageing Analysis of Trade Payables (RMB thousands) | Ageing | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Within 30 days | 21,483 | 26,095 | | 31 to 60 days | 19,342 | 15,227 | | 61 to 90 days | – | 158 | | **Total** | **40,825** | **41,480** | - Trade and other payables decreased primarily due to reductions in trade payables, salaries payable, and accrued expenses, partially offset by an increase of approximately **RMB 2.6 million** in the amount due to a director for operating purposes[67](index=67&type=chunk) [13. Interest-bearing Borrowings](index=16&type=section&id=13.%20Interest-bearing%20Borrowings) As of June 30, 2025, the Group's total interest-bearing borrowings significantly increased to RMB 238.3 million, with a notable rise in the non-current portion. Borrowings are primarily secured by assets such as patents, leased land, buildings, and construction in progress, and are personally guaranteed by an executive director Details of Interest-bearing Borrowings (RMB thousands) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Secured borrowings - bank and other loans | 213,341 | 57,250 | | Unsecured borrowings - bank and other loans | 25,000 | 14,760 | | **Total** | **238,341** | **72,010** | | Current portion | 80,964 | 70,724 | | Non-current portion | 157,377 | 1,286 | Repayment Schedule of Borrowings (RMB thousands) | Repayment Period | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Within one year | 80,964 | 70,724 | | Over one year but not exceeding two years | 157,377 | 1,286 | | **Total** | **238,341** | **72,010** | - Secured borrowings bear interest at a weighted average effective annual interest rate of approximately **4.15%** (December 31, 2024: 4.41%)[39](index=39&type=chunk) - Unsecured borrowings bear interest at an effective annual interest rate of **3.95%** (December 31, 2024: 10.9%)[39](index=39&type=chunk) - Secured borrowings are pledged by patents, leased land, buildings, and construction in progress, and are personally guaranteed by Mr. Shan Yuzhu, an executive director[39](index=39&type=chunk) [14. Related Party Transactions](index=18&type=section&id=14.%20Related%20Party%20Transactions) During the period, the total remuneration for the Group's key management personnel (including directors) was RMB 641 thousand, a decrease from the prior period Key Management Personnel Remuneration (RMB thousands) | Item | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Salaries, allowances, discretionary bonuses and other benefits in kind | 519 | 770 | | Contributions to defined contribution plans | 122 | 119 | | **Total** | **641** | **889** | [15. Commitments](index=19&type=section&id=15.%20Commitments) As of June 30, 2025, the Group's capital expenditure commitments significantly increased to RMB 144.1 million, primarily for the acquisition of property, plant and equipment, while short-term lease commitments also rose Capital Expenditure Commitments (RMB thousands) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Contracted but not provided for (net of deposits paid for acquisition of property, plant and equipment) | 144,138 | – | | Leased land | – | 9,976 | | **Total** | **144,138** | **9,976** | - The Group has short-term lease commitments of approximately **RMB 1,293,000** (December 31, 2024: RMB 962,000)[43](index=43&type=chunk) [Business and Financial Review](index=20&type=section&id=Business%20and%20Financial%20Review) This section reviews the Group's strategic transformation, market conditions, operational highlights, and a detailed analysis of financial performance and liquidity [Business Review](index=20&type=section&id=Business%20Review) Since 2015, the Group has diversified from non-biodegradable automotive plastic components to biodegradable plastic products in response to environmental policies, listing in 2023. During the period, the company consolidated production to Changchun, invested in new facilities, and continued R&D. Despite weak domestic consumer demand, government policy support and market expansion offer long-term growth potential for biodegradable plastics [Company Profile and Strategic Transformation](index=20&type=section&id=Company%20Profile%20and%20Strategic%20Transformation) Since 2015, the Group has diversified its business from non-biodegradable automotive plastic components to biodegradable plastic products in response to China's environmental policies, and was listed on the Main Board of the Hong Kong Stock Exchange on March 31, 2023 - Since 2015, the Group has gradually diversified its business towards the development and manufacturing of biodegradable plastic products in response to China's environmental policies and regulations[44](index=44&type=chunk) - The Company's shares were listed on the Main Board of The Stock Exchange of Hong Kong on March 31, 2023, successfully raising net proceeds of approximately **HKD 155.4 million**[44](index=44&type=chunk) [Product Portfolio and Market Distribution](index=20&type=section&id=Product%20Portfolio%20and%20Market%20Distribution) The Group primarily develops and produces biodegradable plastic products in Northeast China, with a product portfolio including biodegradable roll-on fruit and vegetable bags, shopping bags, and stretch films, of which approximately 90.4% of revenue comes from customers in Northeast China - The Group is primarily engaged in the development and production of biodegradable plastic products in Northeast China, with a product portfolio including biodegradable roll-on fruit and vegetable bags, shopping bags, and stretch films[45](index=45&type=chunk) - During the period, approximately **90.4%** of biodegradable products were sold to customers in Northeast China (prior period: approximately 79.9%)[45](index=45&type=chunk) [Production Base Integration and Expansion](index=21&type=section&id=Production%20Base%20Integration%20and%20Expansion) To enhance production capacity and optimize production lines, the Group consolidated its production to the main Changchun production base in Jilin Province, China, by the end of 2024, acquired a piece of land in January 2025, and subsequently entered into a contract in June 2025 to construct a new production base, expected to commence trial operation in November 2025 - By the end of 2024, the Group relocated all machinery and equipment and terminated the leases for its Dongguan and Anji factories, consolidating and centralizing production at its main Changchun production base in Jilin Province, China[45](index=45&type=chunk) - In January 2025, the acquisition of a **31,615 square meter** plot of land in Jiutai Economic Development Zone, Changchun City, was completed, and in June 2025, a construction contract was entered into for a new production base with a total gross floor area of approximately **80,298 square meters**[46](index=46&type=chunk) - The new production base is expected to commence trial operation and production in **November 2025**, aiming for strategic integration, cost efficiency, market restructuring, enhanced production control capabilities, and resource optimization[46](index=46&type=chunk)[47](index=47&type=chunk) [Research and Development and Industry Standards](index=21&type=section&id=Research%20and%20Development%20and%20Industry%20Standards) The Group continuously invests in R&D, collaborating with Changchun Institute of Applied Chemistry to improve product performance and cost-effectiveness, and participated in formulating the national standard "GB/T 38082–2019" for biodegradable plastic shopping bags - The Group collaborates with Changchun Institute of Applied Chemistry on R&D for biodegradable plastic products to improve product performance and cost-effectiveness[47](index=47&type=chunk) - The Group participated in the discussion and formulation of the national standard "GB/T 38082–2019" for biodegradable plastic shopping bags, which remains the sole national standard for such products in China[47](index=47&type=chunk) - The Group is also a member of relevant plastic production industry associations in China to respond to market trends and promote business development[48](index=48&type=chunk) [Market Outlook and Challenges](index=21&type=section&id=Market%20Outlook%20and%20Challenges) The Chinese government continues to advance environmental policies, with an expanded ban on non-biodegradable plastic bags expected by the end of 2025, driving rapid growth in the biodegradable plastics market. Despite an optimistic market outlook, the Group's revenue declined this period due to weak domestic consumer demand and shifting shopping habits - The Chinese government continues to implement environmental policies, with the ban on non-biodegradable plastic bags expected to expand to major commercial venues by the end of **2025**, driving increased demand for biodegradable plastic products[49](index=49&type=chunk) - According to reports, China's production capacity for biodegradable plastic shopping bags grew by over **20%** annually from 2020 to 2024, with total market output reaching nearly **500,000 tonnes** in 2024, and market size exceeding **RMB 10 billion**, projected to surpass **RMB 60 billion** by 2030[50](index=50&type=chunk) - The Group's revenue decreased by approximately **21.8%** during the period, primarily due to weak domestic consumer demand and a shift in shopping habits from physical stores to online purchases, resulting in reduced orders from existing customers[50](index=50&type=chunk) - Despite challenges, the Group maintains a cautiously optimistic outlook on the long-term prospects of the biodegradable plastic products industry, believing that government support, increased consumer environmental awareness, and market expansion will lay a foundation for positive growth[51](index=51&type=chunk) [Financial Review](index=22&type=section&id=Financial%20Review) During the period, the Group's revenue and gross profit both declined due to weak domestic consumer demand, but other income significantly grew from government grants and receivable recoveries. Administrative and R&D expenses decreased, but finance costs doubled due to increased borrowings, ultimately leading to a decline in profit for the period. On the balance sheet, non-current assets substantially increased due to new production base construction, while trade receivables decreased and trade payables slightly declined [Income Statement Analysis](index=22&type=section&id=Income%20Statement%20Analysis) Revenue and gross profit both decreased during the period, with a corresponding reduction in cost of sales. Other income significantly grew due to government grants and receivable recoveries. Administrative and R&D expenses decreased, but finance costs doubled due to increased borrowings, and income tax expense declined due to reduced profit before tax, ultimately leading to a 25.7% decrease in profit for the period - Revenue decreased by **21.8%** to **RMB 153.9 million**, primarily due to weak domestic consumer demand and a shift in shopping habits towards online purchases, resulting in a decline in chain supermarket orders[52](index=52&type=chunk) - Cost of sales decreased by **21.0%** to **RMB 93.6 million**, mainly due to lower production and raw material costs resulting from reduced revenue[53](index=53&type=chunk) - Gross profit decreased by **23.1%** to **RMB 60.3 million**, with the gross profit margin remaining stable at approximately **39.2%** (prior period: 39.8%)[54](index=54&type=chunk)[55](index=55&type=chunk) - Other income increased by **133.3%** to **RMB 2.1 million**, primarily due to increased government grants and the recovery of previously written-off receivables[56](index=56&type=chunk) - Administrative and other operating expenses decreased by **23.0%** to **RMB 14.4 million**, mainly due to a reduction in R&D expenditure of approximately **RMB 5.7 million**, partially offset by an increase in legal and professional fees of approximately **RMB 1.1 million**[58](index=58&type=chunk) - Finance costs increased by **100.0%** to **RMB 3.4 million**, primarily due to an increase in the balance of interest-bearing borrowings[59](index=59&type=chunk) - Profit for the period decreased by **25.7%** to **RMB 35.8 million**, mainly due to lower gross profit resulting from reduced revenue, partially offset by a decrease in administrative and other operating expenses[61](index=61&type=chunk) [Statement of Financial Position Analysis](index=24&type=section&id=Statement%20of%20Financial%20Position%20Analysis) Property, plant and equipment significantly increased due to construction in progress for a new production base. Right-of-use assets rose due to land acquisition. Deposits paid for property, plant and equipment acquisitions substantially increased. Inventories grew due to maintaining higher raw material levels. Trade and other receivables decreased due to lower revenue, partially offset by increased VAT. Trade and other payables slightly declined, influenced by a combination of factors - Property, plant and equipment increased to **RMB 251.3 million** (end of 2024: RMB 121.2 million), primarily due to an increase of approximately **RMB 136.7 million** in construction in progress for the new production base[62](index=62&type=chunk) - Right-of-use assets increased to **RMB 10.8 million** (end of 2024: RMB 1.0 million), resulting from the completion of land acquisition in January 2025[63](index=63&type=chunk) - Deposits paid for the acquisition of property, plant and equipment amounted to approximately **RMB 108.5 million** (end of 2024: nil), mainly for construction contracts and plant machinery for the new production base[64](index=64&type=chunk) - Inventories increased to **RMB 25.7 million** (end of 2024: RMB 22.2 million), due to maintaining higher raw material levels during the procurement process to control costs[65](index=65&type=chunk) - Trade and other receivables decreased by **22.2%** to **RMB 95.9 million**, primarily due to lower trade receivables from reduced revenue, but offset by an increase in input VAT due to significant capital expenditures[66](index=66&type=chunk) - Trade and other payables decreased by **3.3%** to **RMB 52.4 million**, mainly due to reductions in trade payables, salaries payable, and accrued expenses, partially offset by an increase in the amount due to a director[67](index=67&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=25&type=section&id=Liquidity,%20Financial%20Resources%20and%20Capital%20Structure) The Group maintains adequate liquidity, with cash and cash equivalents of approximately RMB 399.0 million. However, a significant increase in interest-bearing borrowings led to the gearing ratio rising from 12.9% to 39.9%. The Group implements prudent treasury policies, faces no significant exchange rate risk or contingent liabilities, but capital commitments have substantially increased [Cash and Borrowings](index=25&type=section&id=Cash%20and%20Borrowings) As of June 30, 2025, the Group's cash and cash equivalents were approximately RMB 399.0 million, a slight decrease from the end of 2024. Total interest-bearing borrowings significantly increased to RMB 238.3 million - As of June 30, 2025, the Group maintained cash and cash equivalents totaling approximately **RMB 399.0 million** (December 31, 2024: RMB 422.7 million)[68](index=68&type=chunk) - As of June 30, 2025, the Group's interest-bearing borrowings amounted to approximately **RMB 238.3 million** (December 31, 2024: RMB 72.0 million)[68](index=68&type=chunk) [Gearing Ratio and Treasury Policy](index=26&type=section&id=Gearing%20Ratio%20and%20Treasury%20Policy) The Group's gearing ratio increased from 12.9% at the end of 2024 to 39.9% as of June 30, 2025, primarily due to increased interest-bearing borrowings. The company implements prudent treasury policies to maintain flexibility and manage risks - As of June 30, 2025, the Group's gearing ratio was approximately **39.9%** (December 31, 2024: approximately 12.9%), with the increase primarily due to an increase in interest-bearing borrowings of approximately **RMB 166.3 million**[69](index=69&type=chunk) - The Group implements a prudent treasury policy to mitigate credit risk and meet financing needs through credit assessments and liquidity monitoring[70](index=70&type=chunk) [Exchange Rate Risk and Asset Pledges](index=26&type=section&id=Exchange%20Rate%20Risk%20and%20Asset%20Pledges) The vast majority of the Group's transactions, assets, and liabilities are denominated in RMB, resulting in no significant exchange rate risk, and no hedging was undertaken during the period. As of June 30, 2025, the Group's interest-bearing borrowings and lease liabilities are secured by assets such as buildings, construction in progress, leased land, and patents - The vast majority of the Group's transactions, assets, and liabilities are denominated in RMB, resulting in no significant exchange rate risk, and no financial instruments were used to hedge exchange rate risk during the period[71](index=71&type=chunk) Group Asset Pledges (RMB thousands) | Pledged Assets | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Buildings | 18,272 | 19,035 | | Construction in progress | 136,734 | – | | Leased land | 10,669 | 768 | | Patents | 66 | 73 | | **Total** | **165,741** | **19,876** | [Contingent Liabilities and Capital Commitments](index=27&type=section&id=Contingent%20Liabilities%20and%20Capital%20Commitments) As of June 30, 2025 and 2024, the Group had no contingent liabilities. Capital commitments significantly increased to RMB 144.1 million, primarily for the acquisition of property, plant and equipment - As of June 30, 2025 and 2024, the Group had no contingent liabilities[73](index=73&type=chunk) - As of June 30, 2025, the Group's capital commitments amounted to approximately **RMB 144.1 million** (December 31, 2024: approximately RMB 10.0 million)[74](index=74&type=chunk) [Material Investments, Acquisitions and Disposals](index=27&type=section&id=Material%20Investments,%20Acquisitions%20and%20Disposals) During the period, the Group entered into a construction contract with a contractor to build a new production base in Jiutai Economic Development Zone, Changchun City, for a total consideration of approximately RMB 236.7 million, which constitutes a major transaction. Other than this, the Group had no other material investments, acquisitions, or disposals - Jilin Kaishun, a subsidiary of the Company, entered into a construction contract with Henan Naiwo Construction Engineering Co., Ltd. to build a production base in Jiutai Economic Development Zone, Changchun City, for a total consideration of approximately **RMB 236.7 million**[75](index=75&type=chunk) - The transactions contemplated under this construction contract constitute a major transaction for the Company, subject to the reporting, announcement, circular, and shareholder approval requirements under Chapter 14 of the Listing Rules[75](index=75&type=chunk) - Other than the above, the Group did not undertake any other material investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures during the period[75](index=75&type=chunk) [Interim Dividend](index=27&type=section&id=Interim%20Dividend) The Board does not recommend the declaration of an interim dividend for the current period - The Board does not recommend the declaration of an interim dividend for the current period (prior period: nil)[76](index=76&type=chunk) [Other Information](index=28&type=section&id=Other%20Information) This section covers human resources, the utilization of IPO proceeds, the share option scheme, compliance, and administrative matters [Human Resources](index=28&type=section&id=Human%20Resources) As of June 30, 2025, the Group had 157 employees, a decrease from the prior year, with total staff costs of approximately RMB 5.4 million. Remuneration policies are set by the Remuneration Committee, and a share option scheme is in place to incentivize employees and directors - As of June 30, 2025, the Group had **157** employees, compared to 188 as of June 30, 2024, with all employees based in China[77](index=77&type=chunk) - During the period, total staff costs (including directors' remuneration and retirement benefit costs) were approximately **RMB 5.4 million**, compared to approximately RMB 7.1 million in the prior period[77](index=77&type=chunk) - The Group has a share option scheme to grant share options to employees and directors as incentives[77](index=77&type=chunk) [Use of Proceeds](index=28&type=section&id=Use%20of%20Proceeds) The Company's IPO net proceeds were approximately HKD 155.4 million. On March 28, 2025, the Board resolved to change the use of certain unutilized net proceeds from "establishing a Huizhou production base in Southeast China" to "establishing a new production base on Changchun land." As of June 30, 2025, most proceeds have been utilized, with the remaining approximately HKD 4.7 million expected to be used by December 2025 - The Company's net proceeds from its listing were approximately **HKD 155.4 million**[78](index=78&type=chunk) - On March 28, 2025, the Board resolved to change the use of unutilized net proceeds from "establishing a Huizhou production base in Southeast China" to "establishing a new production base on Changchun land"[78](index=78&type=chunk)[79](index=79&type=chunk) Use of Proceeds and Utilization (HKD thousands) | Original Use of Proceeds as Disclosed in Prospectus | Original Allocation | Change in Use | Revised Allocation | Utilized as of June 30, 2025 | Unutilized as of June 30, 2025 | Expected Timeline for Utilizing Unutilized Net Proceeds | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Expansion of biodegradable plastic product production line at Changchun production base | 51,743 | Same | 51,743 | 51,743 | – | Not applicable | | Establishment of Huizhou production base in Southeast China | 51,588 | Establishment of new production base on Changchun land | 51,588 | 51,588 | – | Not applicable | | Strengthening the Group's R&D capabilities and upgrading existing R&D equipment | 6,682 | Same | 6,682 | 6,682 | – | Not applicable | | Funding the Group's R&D projects | 33,253 | Same | 33,253 | 33,253 | – | Not applicable | | Strengthening the Group's IT systems | 4,662 | Same | 4,662 | – | 4,662 | Expected to be utilized by December 2025 | | General working capital | 7,458 | Same | 7,458 | 7,458 | – | Not applicable | | **Total** | **155,386** | | **155,386** | **150,724** | **4,662** | | - As of June 30, 2025, unutilized net proceeds of approximately **HKD 4.7 million** have been deposited in licensed banks in China and are expected to be utilized by **December 2025**[79](index=79&type=chunk)[80](index=80&type=chunk) [Share Option Scheme](index=30&type=section&id=Share%20Option%20Scheme) The Company adopted a share option scheme on March 9, 2023, to incentivize eligible persons. The scheme is valid for 10 years, with the total number of shares available for issue not exceeding 10% of the issued shares. Options have a minimum 12-month vesting period, and the subscription price must not be lower than the highest of the share's nominal value, closing price on the offer date, and average closing price of the preceding five business days. As of this announcement date, no share options have been granted, exercised, cancelled, or lapsed - The Share Option Scheme was adopted on **March 9, 2023**, and became effective after the listing date for a period of **10 years**, aiming to incentivize eligible persons[81](index=81&type=chunk)[93](index=93&type=chunk) - The maximum number of shares that may be issued upon exercise of all share options shall not exceed **10%** of the shares in issue on the listing date, i.e., **100,000,000 shares**[82](index=82&type=chunk) - Share options have a minimum vesting period of **12 months**, and the subscription price shall not be less than the highest of the nominal value of the share, the closing price on the offer date, and the average closing price for the five business days immediately preceding the offer date[86](index=86&type=chunk)[87](index=87&type=chunk) - From the adoption date up to the date of this announcement, no share options have been granted, exercised, cancelled, or lapsed under the Share Option Scheme[94](index=94&type=chunk) [Securities Transactions and Public Float](index=34&type=section&id=Securities%20Transactions%20and%20Public%20Float) During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities. The Company has maintained an adequate public float of not less than 25% of its total issued shares since the listing date - During the period and up to the date of this announcement, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[96](index=96&type=chunk) - From the listing date up to the date of this announcement, the Company has maintained an adequate public float, with such holdings being not less than **25%** of the Company's total issued shares[99](index=99&type=chunk) [Compliance with Laws and Regulations and Corporate Governance](index=35&type=section&id=Compliance%20with%20Laws%20and%20Regulations%20and%20Corporate%20Governance) The Group has complied with relevant laws and regulations materially affecting its business and operations, with no significant breaches during the period. The Company continues to comply with all code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules and has adjusted Nomination Committee members in response to code revisions - The Group has complied with relevant laws and regulations that have a material impact on its business and operations, with no significant breaches during the period[101](index=101&type=chunk) - The Company has consistently complied with all code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules[102](index=102&type=chunk) - In response to revisions to the Corporate Governance Code, Mr. Li Xiquan, an independent non-executive director, ceased to be a member of the Nomination Committee, and Ms. Zhang Yuqiu, an executive director, was appointed to replace him, effective from **June 30, 2025**[103](index=103&type=chunk) [Events After Reporting Period](index=36&type=section&id=Events%20After%20Reporting%20Period) No significant events affecting the Group have occurred from the end of the period up to the date of this announcement - No significant events affecting the Group have occurred from the end of the period up to the date of this announcement[105](index=105&type=chunk) [Audit Committee and Review of Financial Statements](index=36&type=section&id=Audit%20Committee%20and%20Review%20of%20Financial%20Statements) The Company's Audit Committee has reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2025, and confirmed their preparation in accordance with applicable accounting standards - The Audit Committee members include Mr. Leung Tsz Wing (Chairman), Dr. Lai King Yin, and Dr. Song Xiaofeng (all independent non-executive directors)[106](index=106&type=chunk) - The Audit Committee has reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025, and is satisfied that they were prepared in accordance with applicable accounting standards[106](index=106&type=chunk) [Publication of Results Announcement and Interim Report](index=36&type=section&id=Publication%20of%20Results%20Announcement%20and%20Interim%20Report) This results announcement has been published on the Stock Exchange's website and the Company's website, and the interim report will be published in due course - This results announcement has been published on the Stock Exchange's website (www.hkexnews.hk) and the Company's website (http://www.jl-ks.cn)[107](index=107&type=chunk) - The Company's interim report for the six months ended June 30, 2025, will be published on the aforementioned websites in due course[107](index=107&type=chunk)

Financial Performance - For the six months ended June 30, 2025, the company reported a revenue of HKD 894,967,000 from property development, a decrease of approximately 11.5% compared to HKD 1,010,36,000 in the same period of 2024[4] - The company recorded a net loss of HKD 245,990,000 for the period, significantly improved from a loss of HKD 859,224,000 in the same period of 2024[4] - The group's total revenue for the review period was approximately HKD 1,466,423,000, representing an increase of about 103% compared to the same period in 2024[30] - Property development revenue during the review period was approximately HKD 894,967,000, significantly higher than HKD 101,036,000 in the same period of 2024[30] - The group's gross profit increased from approximately HKD 544,864,000 to about HKD 1,010,124,000, primarily due to the rise in property development revenue[32] - The group reported a loss of approximately HKD 245,990,000 during the review period, a significant decrease from a loss of HKD 859,224,000 for the six months ending June 30, 2024, primarily due to increased property development revenue[41] - The group incurred a pre-tax loss of HKD 60,072,000 for the six months ended June 30, 2025, compared to a pre-tax loss of HKD 865,109,000 for the same period in 2024, showing a significant improvement[72][81] Assets and Liabilities - Total assets as of June 30, 2025, amounted to HKD 33,196,132,000, an increase from HKD 32,781,140,000 as of December 31, 2024[4] - The total liabilities as of June 30, 2025, were HKD 30,126,488,000, compared to HKD 29,521,670,000 as of December 31, 2024[4] - The group's bank and other borrowings amounted to approximately HKD 14,479,412,000 as of June 30, 2025, compared to HKD 13,944,416,000 as of December 31, 2024[44] - The group's debt-to-asset ratio was 82% as of June 30, 2025, compared to 81% on December 31, 2024[45] - The group's current liabilities net amount was approximately HKD 11.36 billion[60] - Non-current assets totaled HKD 16.69 billion as of June 30, 2025, compared to HKD 16.14 billion in the previous year[57] - Current assets amounted to HKD 16.51 billion as of June 30, 2025, slightly down from HKD 16.64 billion in the previous year[57] Project Development - The company aims to strengthen its position as a "city renewal expert" by focusing on strategic partnerships and enhancing product quality[6] - The "New City Yujing" project covers an area of approximately 280,836 square meters with a total saleable building area of about 310,716 square meters, and has delivered a cumulative building area of approximately 262,683 square meters by June 30, 2025[12] - The "Zhuguang Yunling Lake" project has a total saleable building area of approximately 110,417 square meters, with cumulative deliveries reaching about 44,053 square meters by June 30, 2025[13] - The "Tianhu Yujing" project has a total saleable building area of approximately 186,894 square meters, with cumulative deliveries of about 140,100 square meters by June 30, 2025[14] - The "Yujing Yayuan" project has a total saleable building area of approximately 38,005 square meters, with cumulative deliveries of about 36,283 square meters by June 30, 2025[15] - The "Huacheng Yujing Garden" project has a total saleable building area of approximately 108,675 square meters, with cumulative deliveries of about 87,849 square meters by June 30, 2025[16] - The "Tianying Project" has a total saleable building area of approximately 59,679 square meters, with cumulative deliveries of about 52,843 square meters by June 30, 2025[17] - The "Meizhou Chaotang Project" has a first phase saleable building area of approximately 34,202 square meters, with a designated hotel area of about 7,389 square meters for long-term investment[18] - The "Zhuguang New City International" project has a total saleable building area of approximately 28,909 square meters, with service apartments totaling about 25,693 square meters delivered by June 30, 2025[19] - The "Zhukong International Center" has a total saleable building area of approximately 109,824 square meters, with 45,588 square meters of office space and parking sold by June 30, 2025[20] Revenue Streams - The project management services segment recorded revenue of approximately HKD 506,853,000 during the review period, compared to HKD 514,231,000 in the same period of 2024, indicating a slight decrease[25] - Rental income from properties, including the Mediterranean Hotel and Zhu Control International Center, totaled approximately HKD 36,142,000, a decrease of about 50% compared to HKD 72,706,000 in the same period of 2024[26] - The company operates two hotels, generating total revenue of approximately HKD 28,461,000 during the review period, down from HKD 35,693,000 for the six months ending June 30, 2024[27] - The property development segment generated revenue of HKD 894,967,000, while the hotel operations segment contributed HKD 64,603,000, indicating strong performance in property sales[72] Financial Management and Strategy - The company aims to maintain sufficient land reserves and precise urban planning to support its development needs for at least the next three to five years[21] - The company will continue to explore investment and development opportunities in Chinese cities with growth potential and optimal investment value[21] - The group plans to focus on enhancing its strategy of "optimizing structure, strengthening capabilities, and improving quality" to overcome challenges in the Chinese real estate market[29] - The company is focused on expanding its project management services to increase revenue sources[25] - The company is seeking high-quality properties with value-added potential for long-term investment purposes[26] - The company has been actively discussing extending the repayment dates of its borrowings with relevant financial institutions[60] - The company has implemented measures to alleviate cash flow pressure and improve liquidity, including active communication with lenders regarding loan repayment schedules[61] - The company is in discussions with banks for refinancing existing loans and obtaining additional credit facilities if necessary[64] Employee and Governance - The group maintained a good relationship with its employees, with most senior management having worked for the company for many years, indicating stability in management[53] - The group employed 599 employees as of June 30, 2025, a decrease from 642 employees as of December 31, 2024, representing a reduction of approximately 6.7%[52] - The company has complied with the applicable corporate governance codes, although it noted a delay in appointing new independent non-executive directors due to ongoing searches for suitable candidates[91][92] - The Audit Committee consists of three independent non-executive directors who reviewed the accounting principles and policies adopted by the Group[94] Tax and Compliance - The group reported a tax expense of HKD 185,918,000 for the six months ended June 30, 2025, compared to a tax credit of HKD (5,885,000) for the same period in 2024[83] - The company reported a significant increase in tax expenses related to land appreciation tax in China, rising to HKD 156,587,000 for the six months ended June 30, 2025, from HKD 2,741,000 in the same period of 2024[83] - The interim financial information has been prepared in accordance with Hong Kong Accounting Standard 34, and does not include all disclosures required for annual financial statements[65] - The new amendments to accounting standards effective from January 1, 2025, will not have a significant impact on the interim financial statements[69]