[Company Information](index=5&type=section&id=Company%20Information) The company's board comprises three executive and four independent non-executive directors, ensuring governance independence, with its registered office in the Cayman Islands and main operations in Hong Kong - The company's board of directors consists of **3 executive directors** (Mr. Wong Tze Chui, Mr. Pong Kin Yee, Mr. Li Kai Leung) and **4 independent non-executive directors** (Dr. Chan Kin Keung, Mr. Ng Chun Fai, Mr. Yu Man Yiu, Ms. Wong Tsui Yu)[9](index=9&type=chunk) - The Audit Committee, Remuneration Committee, and Nomination Committee are all chaired by independent non-executive directors, ensuring the independence of corporate governance[9](index=9&type=chunk) - The company is registered in the Cayman Islands, with its principal place of business, headquarters, and main operating location in Wong Chuk Hang, Hong Kong[10](index=10&type=chunk) - The company's website is www.classifiedgroup.com.hk, and its stock code is **08232**[10](index=10&type=chunk) [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, revenue was **HK$17,008 thousand**, a **4.3% decrease** year-on-year, with loss and total comprehensive income attributable to owners of the company at **HK$2,983 thousand**, largely consistent with the prior period Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | June 30, 2025 (HK$ Thousand) | June 30, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Revenue | 17,008 | 17,777 | | Other income | 79 | 206 | | Other gains and losses | 767 | (1) | | Loss before tax | (2,983) | (2,996) | | Loss and total comprehensive income attributable to owners of the company for the period | (2,983) | (2,996) | | Basic and diluted loss per share (HK Cents) | (5.35) | (5.37) | - Revenue decreased by **4.3% year-on-year**, reflecting challenging operating conditions[12](index=12&type=chunk) - Despite the decline in revenue, the loss for the period remained largely consistent with the prior period, as other gains and losses shifted from a net loss to a net gain[12](index=12&type=chunk) [Unaudited Condensed Consolidated Statement of Financial Position](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total non-current assets were **HK$883 thousand**, total current assets **HK$25,355 thousand**, and total current liabilities **HK$19,712 thousand**, resulting in a net asset value of **HK$6,526 thousand**, a decrease from **HK$9,509 thousand** at December 31, 2024 Key Data from Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Non-current assets | 883 | 1,267 | | Current assets | 25,355 | 26,075 | | Current liabilities | 19,712 | 17,797 | | Net current assets | 5,643 | 8,278 | | Net assets | 6,526 | 9,509 | - Net assets decreased from **HK$9,509 thousand** at December 31, 2024, to **HK$6,526 thousand** at June 30, 2025, primarily due to the loss incurred during the period[13](index=13&type=chunk)[14](index=14&type=chunk) - Current liabilities increased by **HK$1,915 thousand**, while current assets decreased by **HK$720 thousand**, leading to a significant decline in net current assets[13](index=13&type=chunk) [Unaudited Condensed Consolidated Statement of Changes in Equity](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, total equity attributable to owners of the company decreased from **HK$9,509 thousand** at the beginning of the period to **HK$6,526 thousand** at the end, primarily due to a **HK$2,983 thousand** loss incurred during the period Key Data from Condensed Consolidated Statement of Changes in Equity | Indicator | January 1, 2025 (HK$ Thousand) | June 30, 2025 (HK$ Thousand) | | :--- | :--- | :--- | | Share capital | 11,150 | 11,150 | | Share premium | 133,445 | 133,445 | | Other reserves | 766 | 766 | | Accumulated losses | (135,852) | (138,835) | | Total equity attributable to owners of the company | 9,509 | 6,526 | - Accumulated losses increased by **HK$2,983 thousand**, directly leading to an equivalent reduction in total equity attributable to owners of the company[14](index=14&type=chunk) - Share capital, share premium, and other reserves remained unchanged during the reporting period[14](index=14&type=chunk) [Unaudited Condensed Consolidated Statement of Cash Flows](index=10&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash used in operating activities was **HK$694 thousand**, net cash from investing activities **HK$879 thousand**, and net cash used in financing activities **HK$751 thousand**, resulting in a significant decrease in period-end bank balances and cash to **HK$249 thousand** from **HK$815 thousand** at the beginning of the period Key Data from Condensed Consolidated Statement of Cash Flows | Indicator | June 30, 2025 (HK$ Thousand) | June 30, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Net cash used in operating activities | (694) | (684) | | Net cash from investing activities | 879 | 259 | | Net cash used in financing activities | (751) | (5,490) | | Net decrease in cash and cash equivalents | (566) | (5,915) | | Cash and cash equivalents at end of period | 249 | 270 | - Net cash from investing activities significantly increased, primarily due to gains from the disposal of property, plant, and equipment[16](index=16&type=chunk) - Net cash used in financing activities significantly decreased, mainly due to an increase in advances from directors, compared to repayment of directors' advances in the prior period[16](index=16&type=chunk) - Period-end bank balances and cash decreased by **HK$566 thousand** from the beginning of the period, indicating cash flow pressure[16](index=16&type=chunk) [Notes to the Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the financial statements, covering general company information, accounting policies, revenue and segment information, income and expense breakdowns, balance sheet item changes, share capital, and related party transactions, offering context and detail for understanding the interim results - The company primarily engages in restaurant operations in Hong Kong[18](index=18&type=chunk) - The financial statements are presented in Hong Kong Dollars and comply with HKAS 34 and the GEM Listing Rules[19](index=19&type=chunk)[20](index=20&type=chunk) - The application of new and revised HKFRSs had no significant impact on the financial statements for the current period[22](index=22&type=chunk) [1. General Information](index=11&type=section&id=1.%20General%20Information) This section outlines Classified Group (Holdings) Limited's registration, listing status, principal place of business, and its subsidiaries' restaurant operations in Hong Kong - The company was incorporated in the Cayman Islands on **October 24, 2014**, and listed on GEM of the Hong Kong Stock Exchange on **July 11, 2016**[17](index=17&type=chunk) - The company is an investment holding company, with its subsidiaries primarily engaged in restaurant operations in Hong Kong[18](index=18&type=chunk) [2. Basis of Preparation and Presentation](index=11&type=section&id=2.%20Basis%20of%20Preparation%20and%20Presentation) The interim financial statements are prepared in accordance with HKAS 34 and the Hong Kong Companies Ordinance disclosure requirements, complying with GEM Listing Rules, and have been reviewed by the Audit Committee but not audited by external auditors - The interim financial statements are prepared in accordance with **HKAS 34** and the **GEM Listing Rules**[20](index=20&type=chunk) - The statements are unaudited but have been reviewed by the Audit Committee, which concurred with the accounting principles and practices adopted[20](index=20&type=chunk) [3. Principal Accounting Policies](index=12&type=section&id=3.%20Principal%20Accounting%20Policies) The condensed consolidated financial statements are prepared on a historical cost basis, with accounting policies and methods consistent with the prior year, except for changes resulting from new and revised HKFRSs - The financial statements are prepared on a **historical cost basis**[21](index=21&type=chunk) - Accounting policies are largely consistent with the prior year, with changes only due to new and revised Hong Kong Financial Reporting Standards[21](index=21&type=chunk) [4. Application of Hong Kong Financial Reporting Standards](index=12&type=section&id=4.%20Application%20of%20Hong%20Kong%20Financial%20Reporting%20Standards) The Group adopted all new and revised HKFRSs effective for accounting periods beginning on or after January 1, 2025, with no significant impact on the condensed consolidated financial statements - The Group has adopted all new and revised Hong Kong Financial Reporting Standards effective on or after **January 1, 2025**[22](index=22&type=chunk) - The application of these new standards had no significant impact on the condensed consolidated financial statements[22](index=22&type=chunk) [5. Revenue and Segment Information](index=12&type=section&id=5.%20Revenue%20and%20Segment%20Information) The Group's revenue primarily derives from operating casual restaurants and bakeries, with revenue for the six months ended June 30, 2025, at **HK$17,008 thousand**, a **4.3% decrease** year-on-year, and segment loss expanding - The Group's operating and reportable segment is the operation of casual restaurants and bakeries ("Casual")[23](index=23&type=chunk) - Revenue refers to amounts received and receivable for services rendered and goods sold (net of discounts)[23](index=23&type=chunk) [Segment Revenue and Results](index=13&type=section&id=Segment%20Revenue%20and%20Results) Segment revenue for the casual dining and bakery business decreased, leading to an expanded segment loss for the period | Indicator | June 30, 2025 (HK$ Thousand) | June 30, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Revenue | 17,008 | 17,777 | | Segment loss | (1,608) | (1,368) | - Casual segment revenue decreased by **HK$769 thousand** year-on-year, and segment loss expanded by **HK$240 thousand**[24](index=24&type=chunk) [Segment Assets and Liabilities](index=14&type=section&id=Segment%20Assets%20and%20Liabilities) Both casual segment assets and liabilities decreased, with a notable reduction in segment liabilities | Indicator | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Segment assets | 4,267 | 5,136 | | Segment liabilities | 7,056 | 10,789 | - Both casual segment assets and liabilities decreased, with segment liabilities significantly reduced by **HK$3,733 thousand**[25](index=25&type=chunk)[26](index=26&type=chunk) [6. Other Income](index=16&type=section&id=6.%20Other%20Income) For the six months ended June 30, 2025, total other income was **HK$79 thousand**, a significant decrease from **HK$206 thousand** in the prior period, primarily due to a reduction in "other" category income Other Income Details | Item | June 30, 2025 (HK$ Thousand) | June 30, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Interest income | – | 3 | | Others | 19 | 143 | | Management fee income from associated companies | 60 | 60 | | **Total** | **79** | **206** | - Other income decreased by **HK$127 thousand** year-on-year, a **61.6% reduction**[28](index=28&type=chunk) [7. Other Gains and Losses](index=16&type=section&id=7.%20Other%20Gains%20and%20Losses) For the six months ended June 30, 2025, the Group recorded net other gains of **HK$767 thousand**, primarily from the net gain on disposal of property, plant, and equipment, compared to a net loss of **HK$1 thousand** in the prior period Other Gains and Losses Details | Item | June 30, 2025 (HK$ Thousand) | June 30, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Net gain on disposal of property, plant and equipment | 768 | – | | Net foreign exchange loss | (1) | (1) | | **Total** | **767** | **(1)** | - The disposal of property, plant, and equipment generated a net gain of **HK$768 thousand**, which was the primary source of other gains for the period[29](index=29&type=chunk) [8. Finance Costs](index=16&type=section&id=8.%20Finance%20Costs) For the six months ended June 30, 2025, finance costs were **HK$72 thousand**, a significant decrease from **HK$187 thousand** in the prior period, primarily consisting of interest on lease liabilities Finance Costs Details | Item | June 30, 2025 (HK$ Thousand) | June 30, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Interest on lease liabilities | (72) | (187) | - Finance costs decreased by **HK$115 thousand** year-on-year, a **61.5% reduction**, primarily due to lower interest on lease liabilities[30](index=30&type=chunk) [9. Loss Before Tax](index=17&type=section&id=9.%20Loss%20Before%20Tax) For the six months ended June 30, 2025, loss before tax was **HK$2,983 thousand**, largely consistent with **HK$2,996 thousand** in the prior period, primarily driven by raw materials, staff costs, depreciation, rent, and other operating expenses Major Components of Loss Before Tax | Item | June 30, 2025 (HK$ Thousand) | June 30, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Raw materials and consumables used in restaurant operations | (4,455) | (4,335) | | Operating lease payments for leased land and buildings | (520) | (483) | - Despite reduced finance costs, increased operating expenses such as raw materials and consumables, and lease payments, resulted in loss before tax remaining largely consistent with the prior period[12](index=12&type=chunk)[32](index=32&type=chunk) [10. Tax](index=17&type=section&id=10.%20Tax) For the six months ended June 30, 2025, and 2024, the Group had no taxable profits, thus no provision for Hong Kong Profits Tax was made - The Group had no taxable profits during the reporting period[33](index=33&type=chunk) - No provision for Hong Kong Profits Tax was made[33](index=33&type=chunk) [11. Dividends](index=17&type=section&id=11.%20Dividends) During the interim period, the company neither paid, declared, nor proposed any dividends, with the Board deciding against any dividend payment for this period - The company neither paid, declared, nor proposed any dividends during the reporting period[34](index=34&type=chunk) [12. Loss Per Share](index=18&type=section&id=12.%20Loss%20Per%20Share) For the six months ended June 30, 2025, basic and diluted loss per share attributable to owners of the company was **5.35 HK cents**, a slight improvement from **5.37 HK cents** in the prior period, with no dilutive potential ordinary shares issued Loss Per Share Calculation Data | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Loss for the period attributable to owners of the company (HK$ Thousand) | (2,983) | (2,996) | | Weighted average number of ordinary shares (Thousand Shares) | 55,750 | 55,750 | | **Basic and diluted loss per share (HK Cents)** | **(5.35)** | **(5.37)** | - Loss per share slightly narrowed, reflecting a marginal reduction in total loss[37](index=37&type=chunk) - The company had no dilutive potential ordinary shares issued during the reporting period[35](index=35&type=chunk) [13. Movements in Property, Plant and Equipment](index=19&type=section&id=13.%20Movements%20in%20Property%2C%20Plant%20and%20Equipment) During the interim period, the Group disposed of approximately **HK$32,000** of property, plant, and equipment, with no such disposals in the prior period - Property, plant, and equipment disposals amounted to approximately **HK$32 thousand** in the current period[38](index=38&type=chunk) - There were no disposals of property, plant, and equipment in the prior period[38](index=38&type=chunk) [14. Trade and Other Receivables, Deposits and Prepayments](index=19&type=section&id=14.%20Trade%20and%20Other%20Receivables%2C%20Deposits%20and%20Prepayments) As of June 30, 2025, total trade and other receivables, deposits, and prepayments were **HK$3,215 thousand**, a slight decrease from **HK$3,292 thousand** at December 31, 2024, with trade receivables primarily related to credit card settlements with typical 7-day credit terms Details of Trade and Other Receivables, Deposits and Prepayments | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Trade receivables from restaurant operations | 192 | 217 | | Rental deposits | 1,793 | 2,027 | | Other deposits | 414 | 476 | | Prepayments and other receivables | 816 | 572 | | **Total** | **3,215** | **3,292** | Ageing Analysis of Trade Receivables from Restaurant Operations | Ageing | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | 0 to 30 days | 135 | 180 | | 31 to 60 days | 4 | 7 | | 61 to 90 days | 1 | 4 | | Over 90 days | 52 | 26 | | **Total** | **192** | **217** | - Trade receivables primarily represent amounts settled by customers via credit cards, with settlement periods typically within **7 days** after the transaction date[39](index=39&type=chunk) [15. Trade and Other Payables and Accrued Charges](index=20&type=section&id=15.%20Trade%20and%20Other%20Payables%20and%20Accrued%20Charges) As of June 30, 2025, total trade and other payables and accrued charges increased to **HK$8,582 thousand** from **HK$7,751 thousand** at December 31, 2024, with credit terms for goods purchased ranging from **30 to 90 days** Details of Trade and Other Payables and Accrued Charges | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Trade payables | 1,655 | 1,772 | | Accrued staff-related costs | 1,888 | 1,565 | | Other payables and accrued charges | 5,039 | 4,414 | | **Total** | **8,582** | **7,751** | Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | 0 to 30 days | 630 | 838 | | 31 to 60 days | 764 | 726 | | 61 to 90 days | 124 | 136 | | Over 90 days | 137 | 72 | | **Total** | **1,655** | **1,772** | - Accrued staff-related costs and other payables and accrued charges increased, leading to a rise in the total amount[43](index=43&type=chunk) [16. Share Capital](index=22&type=section&id=16.%20Share%20Capital) As of June 30, 2025, the company's authorized share capital was **HK$40,000 thousand**, with issued and fully paid share capital of **HK$11,150 thousand**, comprising **55,750,000 shares**, unchanged from the prior period and year-end Share Capital Details | Item | Par value per ordinary share (HK$) | Number of shares | Amount (HK$ Thousand) | | :--- | :--- | :--- | :--- | | Authorized share capital | 0.2 | 200,000,000 | 40,000 | | Issued and fully paid share capital | 0.2 | 55,750,000 | 11,150 | - The share capital structure remained stable during the reporting period, with no new issuances or repurchases[46](index=46&type=chunk) [17. Related Party Transactions](index=22&type=section&id=17.%20Related%20Party%20Transactions) The Group engaged in various related party transactions during the reporting period, including catering income from directors and Ponti Wine Cellars, management fee income from Way Wise Limited, and management fees and goods purchases from Ponti Wine Cellars Related Party Transactions Details | Item | June 30, 2025 (HK$ Thousand) | June 30, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Catering income from directors of the company | 1 | 3 | | Catering income from Ponti Wine Cellars | 2 | 5 | | Management fee income from Way Wise Limited | 60 | 60 | | Management fees paid to Ponti Wine Cellars | 387 | 462 | | Purchase of goods from Ponti Wine Cellars | 64 | 100 | - Ponti Wine Cellars is controlled by director Mr. Pong Kin Yee and his family, while Way Wise Limited has Mr. Pong as a shareholder and director[50](index=50&type=chunk)[51](index=51&type=chunk) - Remuneration for key management personnel was **HK$210 thousand** in both reporting periods[51](index=51&type=chunk) [Management Discussion and Analysis](index=24&type=section&id=Management%20Discussion%20and%20Analysis) Management discusses challenges in Hong Kong's F&B sector, including rising costs and changing consumer patterns, noting a decline in company revenue, and outlines strategies to enhance profitability through expanding delivery, improving facilities, cost control, and diversifying operational risks - Hong Kong's F&B industry faces a challenging business environment, with rising pressures from food costs, rent, utilities, and labor expenses[52](index=52&type=chunk) - The company has implemented cost-saving measures, including reducing staff costs, negotiating with suppliers, increasing marketing efforts, and expanding its takeaway product lines[52](index=52&type=chunk) - The company will address challenges with flexible marketing strategies and efficient operational responsiveness, continuously adjusting its business model[52](index=52&type=chunk) [Industry Review](index=24&type=section&id=Industry%20Review) Hong Kong's F&B sector continues to face challenges from rising costs and cautious consumer spending, with management anticipating ongoing adverse impacts on industry and Group performance, prompting the implementation of cost-saving and sales-boosting measures - Hong Kong's F&B industry faces continuous pressure from rising food costs, rent, utilities, and labor expenses[52](index=52&type=chunk) - Economic uncertainty leads to cautious customer spending and price sensitivity for dining out, impacting restaurant revenue[52](index=52&type=chunk) - The company has implemented cost-saving measures, such as reducing staff costs, negotiating with suppliers, increasing marketing, and expanding its takeaway product lines[52](index=52&type=chunk) [Business Review](index=24&type=section&id=Business%20Review) The Group primarily operates "Classified" European casual cafes and "Rise by Classified" modern bakeries, reporting net revenue of approximately **HK$17.0 million** for the six months ended June 30, 2025, a **4.3% decrease** year-on-year - "Classified" is a European casual cafe specializing in artisanal bread, cheese, and fine wines[53](index=53&type=chunk) - "Rise by Classified" is a modern bakery brand focusing on pastries, beverages, and locally sourced retail products[53](index=53&type=chunk) - For the six months ended June 30, 2025, net revenue was approximately **HK$17.0 million**, a **4.3% year-on-year decrease**[53](index=53&type=chunk) [Future Prospects](index=25&type=section&id=Future%20Prospects) Hong Kong's F&B sector is expected to remain challenging, facing high operating costs, changing consumer patterns, lease renewal difficulties, food price volatility, and labor shortages; the Group plans to expand takeaway options, upgrade facilities, monitor raw material costs, and diversify restaurant concepts to mitigate risks - Key risks include changing customer consumption patterns (e.g., avoiding dining out, cross-border travel), difficulties in finding commercially attractive locations, and potential challenges in lease renewals[56](index=56&type=chunk) - Operations may be affected by food raw material prices (including imported food impacted by exchange rate fluctuations) and future labor shortages[56](index=56&type=chunk) - Response strategies include expanding takeaway product lines, improving existing restaurant facilities, monitoring raw material quotations, and opening diverse restaurant concepts to diversify risk[56](index=56&type=chunk)[57](index=57&type=chunk) [Financial Review](index=26&type=section&id=Financial%20Review) For the six months ended June 30, 2025, total turnover was approximately **HK$17.0 million**, a **4.3% year-on-year decrease** due to changing consumer spending and a restaurant closure; total loss attributable to owners of the company was approximately **HK$3.0 million**, consistent with the prior period despite net gains from asset disposal and closure of a loss-making restaurant - Total turnover decreased by **4.3% year-on-year** to **HK$17.0 million**, primarily due to changes in consumer spending patterns and the closure of one restaurant[58](index=58&type=chunk) - Total loss attributable to owners of the company was approximately **HK$3.0 million**, consistent with the prior period[58](index=58&type=chunk) - Despite a net gain of **HK$0.77 million** from the disposal of property, plant, and equipment and the closure of a loss-making restaurant, the loss remained consistent with the prior period[58](index=58&type=chunk) [Financial Resources, Liquidity and Capital Structure](index=26&type=section&id=Financial%20Resources%2C%20Liquidity%20and%20Capital%20Structure) As of June 30, 2025, the Group's current assets were **HK$25.4 million** and current liabilities **HK$19.7 million**, with both current and quick ratios declining, a **0% debt-to-equity ratio**, and a capital structure primarily composed of equity attributable to owners, showing no significant changes during the reporting period Liquidity Ratios | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current assets (HK$ Million) | 25.4 | 26.1 | | Current liabilities (HK$ Million) | 19.7 | 17.8 | | Current ratio | 1.29 | 1.46 | | Quick ratio | 0.18 | 0.23 | | Debt-to-equity ratio | 0% | 0% | - Both the current ratio and quick ratio decreased, indicating a weakening in short-term solvency[60](index=60&type=chunk) - The capital structure consists of equity attributable to owners of the company, with no significant changes during the reporting period[61](index=61&type=chunk) [Foreign Currency Risk](index=27&type=section&id=Foreign%20Currency%20Risk) The Group's transactions are predominantly denominated in Hong Kong Dollars, thus it does not face significant foreign exchange risk - The majority of the Group's transactions are denominated in Hong Kong Dollars[62](index=62&type=chunk) - The Group does not face significant foreign exchange risk[62](index=62&type=chunk) [Capital Commitments](index=27&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group had no significant capital commitments - The Group had no significant capital commitments at the end of the reporting period[63](index=63&type=chunk) [Contingent Liabilities](index=27&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no contingent liabilities - The Group had no contingent liabilities at the end of the reporting period[64](index=64&type=chunk) [Employees and Remuneration Policy](index=27&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group employed **50 staff** in Hong Kong, a decrease of **2** from the prior period, with remuneration policies based on market terms, individual performance, qualifications, and experience, including discretionary bonuses and other benefits - As of June 30, 2025, the Group had **50 employees**, a decrease from **52** in the prior period[65](index=65&type=chunk) - Remuneration is determined based on market terms, individual performance, qualifications, and experience, including discretionary bonuses, medical insurance, and retirement benefits[65](index=65&type=chunk) [Other Information](index=28&type=section&id=Other%20Information) This section discloses significant events during and after the reporting period, including no listed securities transactions or share option schemes, changes in directors' and major shareholders' interests (notably a post-period change in controlling shareholder and mandatory cash offer), corporate governance, and Audit Committee operations - No purchases, sales, or redemptions of the company's listed securities occurred during the reporting period[69](index=69&type=chunk) - A significant change in shareholding occurred after the reporting period, with an offeror acquiring **65.7%** of the company's shares, triggering a mandatory unconditional cash offer[81](index=81&type=chunk) - The company has entered into a new six-year lease agreement to operate a Chinese restaurant[82](index=82&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=28&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the six months ended June 30, 2025, or up to the date of this report - Neither the company nor its subsidiaries engaged in any purchase, sale, or redemption of listed securities during the reporting period or up to the date of this report[69](index=69&type=chunk) [Share Option Scheme](index=28&type=section&id=Share%20Option%20Scheme) As of the date of this report, the company had not granted any share options under its share option scheme - The company has not granted any share options[70](index=70&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in the Shares, Underlying Shares and Debentures of the Company and its Associated Corporations](index=29&type=section&id=Directors%27%20and%20Chief%20Executive%27s%20Interests%20and%20Short%20Positions%20in%20the%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20and%20its%20Associated%20Corporations) As of June 30, 2025, executive directors Mr. Wong Tze Chui and Mr. Pong Kin Yee held **24.8%** and **40.9%** of the company's shares, respectively, through controlled corporations; post-period, their controlled entities sold most of their shares, resulting in a change of company control Directors' Long Positions in the Company's Ordinary Shares | Name of Director | Capacity/Nature of interest | Number of shares held | Approximate percentage of shareholding | | :--- | :--- | :--- | :--- | | Mr. Wong Tze Chui | Interest in controlled corporation | 13,843,692 | 24.8% | | Mr. Pong Kin Yee | Interest in controlled corporation | 22,771,433 | 40.9% | - After the reporting period, entities controlled by Mr. Wong Tze Chui and Mr. Pong Kin Yee sold a total of **36,615,125 shares** of the company (representing **65.7%** of the issued share capital) to One Wood Group (BVI) Limited[71](index=71&type=chunk) [Substantial Shareholders' and Other Persons' Interests and Short Positions in the Shares, Underlying Shares and Debentures of the Company](index=30&type=section&id=Substantial%20Shareholders%27%20and%20Other%20Persons%27%20Interests%20and%20Short%20Positions%20in%20the%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company) As of June 30, 2025, Wiltshire Global Limited and Peyton Global Limited were substantial shareholders, holding **24.8%** and **40.9%** of shares respectively, with VMS Investment Group Limited holding **6.1%**; post-period, Wiltshire Global Limited and Peyton Global Limited sold most of their shares Substantial Shareholders' Long Positions in the Company's Ordinary Shares | Name | Capacity/Nature of interest | Number of shares held | Approximate percentage of shareholding | | :--- | :--- | :--- | :--- | | Wiltshire Global Limited | Beneficial owner | 13,843,692 | 24.8% | | Ms. Li Yuen Ching | Interest of spouse | 13,843,692 | 24.8% | | Peyton Global Limited | Beneficial owner | 22,771,433 | 40.9% | | Ms. Cheng Chi Man | Interest of spouse | 22,771,433 | 40.9% | | VMS Investment Group Limited | Beneficial owner | 3,400,000 | 6.1% | | Ms. Mak Siu Han | Interest in controlled corporation | 3,400,000 | 6.1% | - After the reporting period, Wiltshire Global Limited and Peyton Global Limited sold their combined **65.7%** stake to One Wood Group (BVI) Limited[74](index=74&type=chunk)[76](index=76&type=chunk) [Directors' Interests in Competing Business](index=32&type=section&id=Directors%27%20Interests%20in%20Competing%20Business) Except as disclosed in the prospectus, directors are unaware of any business or interest that constitutes or may constitute competition to the Group's business during the reporting period, nor any other conflicts of interest - Directors had no known interests or conflicts of interest that constituted competition to the Group's business during the reporting period[77](index=77&type=chunk) [Audit Committee](index=32&type=section&id=Audit%20Committee) Established on June 14, 2016, the Audit Committee comprises four independent non-executive directors, chaired by Mr. Yu Man Yiu, responsible for reviewing financial reports, providing recommendations, and overseeing financial reporting and internal control procedures, and has reviewed these interim results - The Audit Committee comprises four independent non-executive directors, with Mr. Yu Man Yiu serving as Chairman[78](index=78&type=chunk) - Key responsibilities include reviewing financial reports, providing recommendations, and overseeing financial reporting and internal control procedures[78](index=78&type=chunk) - The Audit Committee has reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025[78](index=78&type=chunk) [Directors' Securities Transactions](index=32&type=section&id=Directors%20Securities%20Transactions) The company has adopted a code of conduct for directors' securities transactions, with terms no less stringent than GEM Listing Rules, and all directors have confirmed compliance with the required dealing standards and code of conduct - The company has adopted a stringent code of conduct for directors' securities transactions[79](index=79&type=chunk) - All directors have complied with the relevant dealing standards and code of conduct[79](index=79&type=chunk) [Corporate Governance](index=33&type=section&id=Corporate%20Governance) The company is committed to maintaining high corporate governance standards; despite a deviation from Code Provision C.2.1 where the roles of Chairman and Chief Executive are not separated (Mr. Wong Tze Chui serves as Chairman with no CEO), the Board believes this does not impair Group management and will review the structure periodically - The company is committed to maintaining high standards of corporate governance[80](index=80&type=chunk) - There is a deviation from Code Provision C.2.1 of the Corporate Governance Code, where the roles of Chairman and Chief Executive are not separated[80](index=80&type=chunk) - The Board believes this vacancy does not impair Group management and will review the structure periodically[80](index=80&type=chunk) [Events After Reporting Period](index=33&type=section&id=Events%20After%20Reporting%20Period) Two significant post-reporting period events include the sale of **65.7%** of the company's shares by major shareholders, leading to a change in control and a mandatory unconditional cash offer, and the company entering a new six-year lease agreement for a Chinese restaurant, involving approximately **HK$16.8 million** in right-of-use assets - On **July 21, 2025**, major shareholders sold **65.7%** of the company's shares to One Wood Group (BVI) Limited, resulting in a change of controlling interest[81](index=81&type=chunk) - Pursuant to the Takeovers Code, the offeror is required to make a mandatory unconditional cash offer for the company at **HK$1.318 per share**[81](index=81&type=chunk) - On **August 27, 2025**, the company entered into a six-year lease agreement to operate a Chinese restaurant, recognizing right-of-use assets totaling approximately **HK$16.8 million**[82](index=82&type=chunk)

[Announcement Information and Financial Summary](index=1&type=section&id=I.%20公告信息与财务摘要) [Company Information and Announcement Overview](index=1&type=section&id=1.1%20公司信息与公告概览) Symphony Holdings Limited (Stock Code: 01223) released its unaudited interim results for the six months ended June 30, 2025, which have been reviewed by the company's Audit Committee - Symphony Holdings Limited (Stock Code: 01223) announced its unaudited interim results for the six months ended June 30, 2025[2](index=2&type=chunk)[3](index=3&type=chunk) - The report has been reviewed by the company's Audit Committee[3](index=3&type=chunk) [Financial Summary](index=1&type=section&id=1.2%20财务摘要) During the period, the Group's EBITDA slightly increased, losses narrowed significantly, total comprehensive income attributable to owners turned profitable, and net assets also grew Key Financial Indicators Comparison (For the six months ended June 30) | Metric | 2025 (in thousands HKD) | 2024 (in thousands HKD) | Change | | :--- | :--- | :--- | :--- | | Net Assets | 2,345,200 | 2,319,000 | +1.1% | [Condensed Consolidated Financial Statements](index=2&type=section&id=II.%20简明综合财务报表) [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=2.1%20简明综合损益表) For the six months ended June 30, 2025, the Group's revenue slightly decreased, but losses for the period narrowed significantly year-on-year due to controlled cost of sales and finance costs, leading to a reduction in basic and diluted loss per share Key Data from Condensed Consolidated Statement of Profit or Loss (For the six months ended June 30) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Basic and Diluted Loss Per Share | (0.45) HK cents | (0.95) HK cents | -52.6% | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=2.2%20简明综合全面收益表) During the period, the Group's total comprehensive income improved significantly, turning from a negative value in the prior-year period to a positive one, mainly due to the positive impact of exchange differences on translation of foreign operations Key Data from Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Metric | 2025 (in thousands HKD) | 2024 (in thousands HKD) | Change | | :--- | :--- | :--- | :--- | | Total comprehensive income for the period attributable to owners of the Company | 45,405 | (83,537) | Turnaround | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=2.3%20简明综合财务状况表) As of June 30, 2025, the Group's net assets and net current assets both increased, and the current ratio improved, indicating enhanced financial stability Key Data from Condensed Consolidated Statement of Financial Position (As of period end) | Metric | June 30, 2025 (in thousands HKD) | Dec 31, 2024 (in thousands HKD) | Change | | :--- | :--- | :--- | :--- | | Total Equity | 2,345,243 | 2,318,961 | +1.1% | [Notes to the Condensed Consolidated Financial Statements](index=6&type=section&id=III.%20简明综合财务报表附注) [General Information](index=6&type=section&id=3.1%20一般资料) Symphony Holdings Limited was incorporated in Bermuda in 1993, listed on the Hong Kong Stock Exchange in 1995, and its principal businesses include brand promotion, retail, and financial services, with the ultimate controlling party being the company's Chairman, Mr Cheng Tun Nei - Symphony Holdings Limited was incorporated in Bermuda on November 24, 1993, and has been listed on the Main Board of The Stock Exchange of Hong Kong Limited since March 1, 1995[9](index=9&type=chunk) - The ultimate controlling party is Mr Cheng Tun Nei, the Chairman and a director of the Company[9](index=9&type=chunk) - The Group's principal businesses include brand promotion (SKINS trademark, healthcare products, Japanese sake distribution), retail (outlet management, property investment), and financial services (securities brokerage, margin financing, money lending, financial advisory)[10](index=10&type=chunk)[12](index=12&type=chunk) [Basis of Preparation and Accounting Policies](index=6&type=section&id=3.2%20编制基础与会计政策) The interim condensed consolidated financial statements are prepared in accordance with HKAS 34 and the Listing Rules, follow the accounting policies of the 2024 annual financial statements, and changes in accounting policies this period had no material impact on the financial position [Basis of Preparation](index=6&type=section&id=3.2.1%20编制基础) The interim condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 issued by the HKICPA and the applicable disclosure requirements of the Hong Kong Stock Exchange Listing Rules, and are presented in Hong Kong dollars - The interim condensed consolidated financial statements have been prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[10](index=10&type=chunk) - The interim condensed consolidated financial statements are presented in Hong Kong dollars[11](index=11&type=chunk) [Changes in Accounting Policies](index=7&type=section&id=3.2.2%20会计政策变动) The Group has adopted amendments to Hong Kong Financial Reporting Standards effective January 1, 2025, but these amendments did not have any material impact on the financial performance and position for the current and prior periods - The Group has adopted amendments to Hong Kong Financial Reporting Standards which are effective for the financial year beginning on January 1, 2025[13](index=13&type=chunk) - The application of the amendments to HKFRSs in the current period has had **no material impact** on the Group's financial performance and position for the current and prior periods and/or on the disclosures set out in these interim condensed consolidated financial statements[13](index=13&type=chunk) [Segment Information](index=8&type=section&id=3.3%20分部资料) The Group's business is divided into three reportable segments—Brand Promotion, Retail, and Financial Services—in accordance with HKFRS 8, with information on revenue, results, assets, and liabilities regularly provided to the chief operating decision-maker [Segment Revenue and Results](index=8&type=section&id=3.3.1%20分部收入及业绩) The Retail segment is the main contributor to the Group's revenue and profit, while both the Brand Promotion and Financial Services segments recorded losses during the period, with the loss from Financial Services widening Segment Revenue and Results (For the six months ended June 30, 2025) | Segment | Revenue (in thousands HKD) | Results (in thousands HKD) | | :--- | :--- | :--- | | Consolidated Total | 148,229 | 6,951 | Segment Revenue and Results (For the six months ended June 30, 2024) | Segment | Revenue (in thousands HKD) | Results (in thousands HKD) | | :--- | :--- | :--- | | Consolidated Total | 150,324 | 12,173 | - Revenue from the Retail segment was primarily generated from the China market (**HK$94,825 thousand**), with the main product and service being commission income from franchise sales (**HK$94,468 thousand**)[20](index=20&type=chunk) - Revenue from the Financial Services segment was primarily generated from Hong Kong (**HK$5,596 thousand**), with the main product and service being interest income (**HK$5,596 thousand**)[21](index=21&type=chunk) [Segment Assets](index=12&type=section&id=3.3.2%20分部资产) The Retail segment holds the largest asset base in the Group, with total assets approaching HK$3 billion as of June 30, 2025, reflecting its core position in the Group's business Segment Assets (As of period end) | Metric | June 30, 2025 (in thousands HKD) | Dec 31, 2024 (in thousands HKD) | | :--- | :--- | :--- | | Total Consolidated Assets | 4,440,464 | 4,415,961 | [Segment Liabilities](index=13&type=section&id=3.3.3%20分部负债) The Retail segment has the largest liabilities, which decreased during the period, while liabilities for the Financial Services segment increased Segment Liabilities (As of period end) | Metric | June 30, 2025 (in thousands HKD) | Dec 31, 2024 (in thousands HKD) | | :--- | :--- | :--- | | Total Consolidated Liabilities | 2,095,221 | 2,097,000 | [Other Income and Gains](index=13&type=section&id=3.4%20其他收入及收益) Other income and gains for the period increased significantly by 42.8%, mainly driven by the reversal of tax provisions and an increase in reimbursement income from outlet operations, which offset the decrease in government grants and interest income Other Income and Gains (For the six months ended June 30) | Metric | 2025 (in thousands HKD) | 2024 (in thousands HKD) | Change | | :--- | :--- | :--- | :--- | | Total | 35,724 | 25,009 | +42.8% | [Finance Costs](index=13&type=section&id=3.5%20融资成本) Finance costs for the period decreased significantly by 18.9% year-on-year, primarily due to a reduction in interest expenses on bank loans Finance Costs (For the six months ended June 30) | Metric | 2025 (in thousands HKD) | 2024 (in thousands HKD) | Change | | :--- | :--- | :--- | :--- | | Total | 39,687 | 48,945 | -18.9% | [Loss Before Income Tax Expense](index=14&type=section&id=3.6%20除所得税开支前亏损) The loss before income tax expense narrowed substantially during the period, mainly due to improvements in items such as depreciation, amortization, cost of inventories, and interest income, despite an increase in the fair value loss on financial assets Factors Affecting Loss Before Income Tax Expense (For the six months ended June 30) | Metric | 2025 (in thousands HKD) | 2024 (in thousands HKD) | Change | | :--- | :--- | :--- | :--- | | Fair value loss on financial assets at FVTPL | 2,518 | 571 | +341.0% | [Income Tax Expense](index=15&type=section&id=3.7%20所得税开支) Income tax expense for the period increased by 50.8% year-on-year, primarily due to an increase in provisions for China Enterprise Income Tax, with minor changes in Hong Kong Profits Tax and overseas taxes Income Tax Expense (For the six months ended June 30) | Metric | 2025 (in thousands HKD) | 2024 (in thousands HKD) | Change | | :--- | :--- | :--- | :--- | | Total | 5,387 | 3,572 | +50.8% | - Hong Kong Profits Tax is calculated using a two-tiered system, with a rate of 8.25% on the first HK$2 million and 16.5% on the remainder[30](index=30&type=chunk) - The statutory rate for China Enterprise Income Tax is 25%, but rental income from subsidiaries engaged in property investment is subject to a 10% withholding tax rate[31](index=31&type=chunk) [Dividends](index=16&type=section&id=3.8%20股息) The Board does not recommend an interim dividend for the period; the company approved a final dividend of HK$0.005 per share for FY2024 on June 20, 2025, totaling approximately HK$14.871 million - The Board of Directors does not recommend the payment of any interim dividend for the period[34](index=34&type=chunk) - The company approved the payment of a final dividend for the financial year ended December 31, 2024, of **HK$0.005 per ordinary share**, totaling approximately **HK$14,871,000**, on June 20, 2025[34](index=34&type=chunk) [Loss Per Share](index=17&type=section&id=3.9%20每股亏损) The basic and diluted loss per share for the period was 0.45 HK cents, a significant narrowing from 0.95 HK cents in the same period last year, reflecting the Group's improved loss position Loss Per Share (For the six months ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Basic and Diluted Loss Per Share (HK cents) | (0.45) | (0.95) | - For the six months ended June 30, 2025 and 2024, the Company had no potential dilutive ordinary shares, therefore, diluted loss per share is the same as basic loss per share[35](index=35&type=chunk) [Trade and Other Receivables](index=18&type=section&id=3.10%20贸易及其他应收账款) As of June 30, 2025, total trade and other receivables increased slightly, but net trade receivables decreased, with a significant portion of trade receivables still aged over 90 days Trade and Other Receivables (As of period end) | Metric | June 30, 2025 (in thousands HKD) | Dec 31, 2024 (in thousands HKD) | | :--- | :--- | :--- | | Total Trade and Other Receivables | 132,343 | 127,231 | Ageing Analysis of Trade Receivables (Net of loss allowance) | Ageing | June 30, 2025 (in thousands HKD) | Dec 31, 2024 (in thousands HKD) | | :--- | :--- | :--- | | Over 90 days | 8,181 | 8,919 | [Advances to Margin Clients](index=19&type=section&id=3.11%20提供予保证金融资客户之垫款) As of June 30, 2025, advances to margin clients decreased slightly, are primarily secured by listed equity securities, and no loss allowance was recognized during the period Advances to Margin Clients (As of period end) | Metric | June 30, 2025 (in thousands HKD) | Dec 31, 2024 (in thousands HKD) | | :--- | :--- | :--- | | Total | 123,657 | 126,610 | - The advances are secured by listed equity securities, bear interest at rates ranging from HKD Prime Rate to Prime Rate plus 3% per annum, and are repayable on demand[38](index=38&type=chunk) - **No loss allowance was recognized** for the current and prior periods as there were no significant default events and the fair value of the collateral was sufficient to cover the loan balance[39](index=39&type=chunk) [Loans Receivable](index=19&type=section&id=3.12%20应收贷款) As of June 30, 2025, total loans receivable increased, primarily secured by mortgages over borrowers' properties and listed equity securities in Hong Kong, with annual interest rates ranging from 5% to 18% Loans Receivable (As of period end) | Metric | June 30, 2025 (in thousands HKD) | Dec 31, 2024 (in thousands HKD) | | :--- | :--- | :--- | | Net Value | 50,360 | 45,734 | - Loans receivable are secured by mortgages over borrowers' properties and listed equity securities in Hong Kong, bear interest at 5% to 18% per annum, and are repayable within one year or on demand[40](index=40&type=chunk) [Trade and Other Payables](index=20&type=section&id=3.13%20贸易及其他应付账款) As of June 30, 2025, total trade and other payables remained stable compared to the end of last year, with a decrease in trade payables from segments other than financial services Trade and Other Payables (As of period end) | Metric | June 30, 2025 (in thousands HKD) | Dec 31, 2024 (in thousands HKD) | | :--- | :--- | :--- | | Total Trade and Other Payables | 349,199 | 349,459 | Ageing Analysis of Trade Payables (Excluding Financial Services Segment) | Ageing | June 30, 2025 (in thousands HKD) | Dec 31, 2024 (in thousands HKD) | | :--- | :--- | :--- | | Over 90 days | 463 | 717 | [Management Discussion and Analysis](index=21&type=section&id=IV.%20管理层讨论与分析) [Business Review](index=21&type=section&id=4.1%20业务回顾) Facing a complex global economic environment, Symphony Holdings achieved strong performance in its retail business through strategic business layout and digital transformation, realized cross-domain synergy in its brand business, and maintained prudent operations with stable returns in its financial business [Retail Business](index=21&type=section&id=4.1.1%20零售业务) The core retail brand "SIMPLY OUTLETS" performed strongly in the Xiamen and Shenyang markets, achieving new sales highs and business format optimization, while driving digital transformation through AI market analysis and WeChat Channel live streaming, earning multiple industry recognitions - Xiamen "SIMPLY OUTLETS" achieved the "over 100 million in the first month" milestone for the fourth consecutive year, with upgraded international sports brand flagships setting new regional performance records[43](index=43&type=chunk) - Shenyang "SIMPLY OUTLETS" optimized its brand mix by introducing top-tier international brands, achieving breakthrough sales performance during holidays[43](index=43&type=chunk) - Digital transformation proved effective, with an AI market analysis system improving operational decision-making precision and WeChat Channel live streaming boosting member interaction and sales conversion rates[43](index=43&type=chunk) [Brand Promotion Business](index=21&type=section&id=4.1.2%20品牌推广业务) The brand business achieved cross-domain synergy, with SKINS optimizing its global strategic layout and deepening partnerships, healthcare business SBT expanding cross-border e-commerce channels, and Japanese sake brand "Hakuryu" strengthening high-end catering channels and overseas market promotion - Sport compression wear brand **SKINS** optimized its global strategy, focusing resources on core markets, restructuring its supply chain, and deepening collaborations with international athletes and top-tier events[44](index=44&type=chunk) - Healthcare business **SBT** successfully expanded its cross-border e-commerce channels, accelerating its penetration into the Southeast Asian market[44](index=44&type=chunk) - Japanese sake brand **"Hakuryu"** focused on strengthening high-end catering channels and exposure at industry exhibitions to enhance brand awareness as production capacity increased[45](index=45&type=chunk) [Financial Services Business](index=22&type=section&id=4.1.3%20金融服务业务) The financial business adhered to prudent operating principles, improved its risk management system, expanded its high-quality client base, and benefited from the capital market recovery, delivering performance in line with expectations and providing stable income support for the Group - The financial business adhered to prudent operating principles, expanding its high-quality client base while improving its risk management system[45](index=45&type=chunk) - Benefiting from the capital market recovery in the first half of the year, business performance was in line with expectations, providing stable income support for the Group[45](index=45&type=chunk) [Financial Review](index=22&type=section&id=4.2%20财务回顾) During the period, the Group's overall revenue slightly decreased, but through cost control and the reversal of tax provisions, both EBITDA and total comprehensive income increased, losses narrowed significantly, and the financial position improved markedly [Interim Results Overview](index=22&type=section&id=4.2.1%20中期业绩概览) During the period, the Group's overall revenue slightly decreased by 1.4%, but EBITDA grew by 2.2%, loss for the period narrowed by 52.2%, total comprehensive income attributable to owners of the Company turned profitable, and net assets increased by 1.1% Interim Results Overview (For the six months ended June 30) | Metric | 2025 (in thousands HKD) | 2024 (in thousands HKD) | Change | | :--- | :--- | :--- | :--- | | Total comprehensive income attributable to owners of the Company | 45,400 | (83,500) | Turnaround | - Net assets increased from approximately HK$2,319.0 million as of December 31, 2024, to approximately **HK$2,345.2 million** as of June 30, 2025[46](index=46&type=chunk) [Segmental Performance Analysis](index=22&type=section&id=4.2.2%20分部业绩分析) The Brand Promotion segment's revenue decreased by 13.2% and its loss widened, the Retail segment's revenue grew by 1.4% but its profit slightly declined, and the Financial Services segment's revenue fell by 7.2% as its loss widened Segment Revenue and Results (For the six months ended June 30) | Segment | Revenue 2025 (in thousands HKD) | Revenue 2024 (in thousands HKD) | Revenue Change | Results 2025 (in thousands HKD) | Results 2024 (in thousands HKD) | Results Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Financial Services | 8,300 | 8,900 | -7.2% | (1,900) | (400) | Loss Widened | - The gross profit margin of the Brand Promotion segment increased from approximately 57.7% in the same period of 2024 to approximately **62.5%** in the current period[47](index=47&type=chunk) [Cost of Sales and Gross Profit](index=23&type=section&id=4.2.3%20销售成本及毛利) Cost of sales for the period decreased by 23.0% year-on-year, leading to a slight increase in gross profit by 0.1% to approximately HK$140.7 million Cost of Sales and Gross Profit (For the six months ended June 30) | Metric | 2025 (in thousands HKD) | 2024 (in thousands HKD) | Change | | :--- | :--- | :--- | :--- | | Gross Profit | 140,700 | 140,500 | +0.1% | [Other Income and Gains](index=23&type=section&id=4.2.4%20其他收入及收益) Other income and gains for the period increased significantly by 42.8%, primarily driven by an increase in reimbursement income from outlets and government grants Other Income and Gains (For the six months ended June 30) | Metric | 2025 (in thousands HKD) | 2024 (in thousands HKD) | Change | | :--- | :--- | :--- | :--- | | Other income and gains | 35,700 | 25,000 | +42.8% | [Distribution and Selling Expenses](index=24&type=section&id=4.2.5%20分销及销售开支) Distribution and selling expenses for the period increased by 11.0% year-on-year, mainly due to higher advertising and promotion expenses and employee costs Distribution and Selling Expenses (For the six months ended June 30) | Metric | 2025 (in thousands HKD) | 2024 (in thousands HKD) | Change | | :--- | :--- | :--- | :--- | | Distribution and selling expenses | 29,700 | 26,800 | +11.0% | [Administrative Expenses](index=24&type=section&id=4.2.6%20行政开支) Administrative expenses for the period increased by 7.2% year-on-year, mainly influenced by factors such as employee costs, PRC tax surcharges, and professional fees Administrative Expenses (For the six months ended June 30) | Metric | 2025 (in thousands HKD) | 2024 (in thousands HKD) | Change | | :--- | :--- | :--- | :--- | | Administrative expenses | 69,400 | 64,800 | +7.2% | [Finance Costs](index=24&type=section&id=4.2.7%20融资成本) Finance costs for the period decreased by 18.9% year-on-year, primarily due to a reduction in interest expenses on bank loans Finance Costs (For the six months ended June 30) | Metric | 2025 (in thousands HKD) | 2024 (in thousands HKD) | Change | | :--- | :--- | :--- | :--- | | Finance costs | 39,700 | 48,900 | -18.9% | [Fair Value Loss on Financial Assets at FVTPL](index=24&type=section&id=4.2.8%20按公平价值列入损益的金融资产公平价值亏损) The fair value loss on financial assets at fair value through profit or loss for the period increased by approximately HK$1.9 million year-on-year to approximately HK$2.5 million Fair Value Loss on Financial Assets (For the six months ended June 30) | Metric | 2025 (in thousands HKD) | 2024 (in thousands HKD) | Change | | :--- | :--- | :--- | :--- | | Fair value loss | 2,500 | 600 | +316.7% | [Income Tax Expense](index=24&type=section&id=4.2.9%20所得税开支) Income tax expense for the period increased by 50.8% year-on-year to approximately HK$5.4 million Income Tax Expense (For the six months ended June 30) | Metric | 2025 (in thousands HKD) | 2024 (in thousands HKD) | Change | | :--- | :--- | :--- | :--- | | Income tax expense | 5,400 | 3,600 | +50.8% | [Loss for the Period Attributable to Owners of the Company](index=24&type=section&id=4.2.10%20本公司拥有人应占期内亏损) The loss for the period attributable to owners of the Company decreased significantly to approximately HK$13.3 million, mainly due to the combined effect of increased other income and gains and reduced finance costs Loss for the Period Attributable to Owners of the Company (For the six months ended June 30) | Metric | 2025 (in thousands HKD) | 2024 (in thousands HKD) | Change | | :--- | :--- | :--- | :--- | | Loss for the period attributable to owners of the Company | (13,300) | (28,400) | -53.2% | - The reduction in loss was mainly due to the combined effect of an increase in other income and gains and a decrease in finance costs resulting from the fall in HIBOR[57](index=57&type=chunk) [Market Information](index=25&type=section&id=4.3%20市场信息) During the period, revenue from China, Hong Kong, and other Asian countries accounted for 95.2% of total revenue, indicating the Group's business is highly concentrated in the Asian market - Revenue from China, Hong Kong, and other Asian countries accounted for approximately **95.2%** of total revenue (prior-year period: approx 94.7%)[58](index=58&type=chunk) - The remaining 4.8% (prior-year period: approx 5.3%) of revenue was derived from the United States and other countries[58](index=58&type=chunk) [Liquidity and Financial Resources](index=25&type=section&id=4.4%20流动资金及财务资源) As of June 30, 2025, the Group's bank balances and cash decreased slightly, but the current ratio improved significantly to 1.26, indicating enhanced liquidity, while the gearing ratio rose modestly Liquidity and Financial Resources (As of period end) | Metric | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Current Ratio | 1.26 | 1.10 | +14.5% | - The Group's floating-rate bank loans carried annual interest rates ranging from approximately 1.79% to 6.81%, lower than the 1.92% to 7.83% in the same period last year[60](index=60&type=chunk) [Pledge of Assets](index=25&type=section&id=4.5%20资产质押) As of June 30, 2025, the Group had pledged various assets, including land, buildings, investment properties, right-of-use assets, and assets held for sale, as well as shares of certain subsidiaries and corporate/personal guarantees, to secure banking facilities - The Group has pledged leasehold land and buildings, outlet buildings, investment properties, right-of-use assets, and assets classified as held for sale with a total carrying amount of approximately **HK$3,363.8 million**[62](index=62&type=chunk) - In addition, shares of certain subsidiaries, corporate guarantees, and a personal guarantee provided by a director were also pledged to secure banking facilities[62](index=62&type=chunk) [Capital Commitments](index=26&type=section&id=4.6%20资本承担) As of June 30, 2025, the Group's capital commitments related to the construction of the Shenyang outlet building were approximately HK$6.1 million, a decrease from the end of the previous year Capital Commitments (As of period end) | Item | June 30, 2025 (in thousands HKD) | Dec 31, 2024 (in thousands HKD) | | :--- | :--- | :--- | | Construction costs for Shenyang outlet building | 6,100 | 8,100 | [Capital Expenditure](index=26&type=section&id=4.7%20资本开支) Capital expenditure for the period increased significantly to approximately HK$3.1 million, primarily for the purchase of property, plant and equipment, and the construction of the Shenyang outlet building Capital Expenditure (For the six months ended June 30) | Metric | 2025 (in thousands HKD) | 2024 (in thousands HKD) | Change | | :--- | :--- | :--- | :--- | | Capital Expenditure | 3,100 | 600 | +416.7% | [Contingent Liabilities](index=26&type=section&id=4.8%20或然负债) The Group has potential tax penalties arising from the overdue submission of PRC Enterprise Income Tax returns to the PRC tax authorities, but management considers the amount not to be material, and the vendor has undertaken to indemnify the related tax liabilities - The Group has potential tax penalties arising from the overdue submission of PRC Enterprise Income Tax returns to the PRC tax authorities[66](index=66&type=chunk) - Management considers the potential penalty amount not to be material, and the vendor has undertaken to indemnify any tax liabilities arising from the late submission of tax returns prior to the completion date of the acquisition[32](index=32&type=chunk) [Employees and Remuneration Policies](index=26&type=section&id=4.9%20雇员及薪酬政策) As of June 30, 2025, the Group's total number of employees decreased to 249, and employee costs (excluding directors' remuneration) decreased by 7.3% year-on-year; the Group offers competitive salaries, discretionary bonuses, share options, and other benefits Employees and Remuneration (For the six months ended June 30) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Employee Costs (excluding directors' remuneration) (in thousands HKD) | 27,100 | 29,300 | -7.3% | - The Group offers competitive remuneration packages, discretionary bonuses, employee share options, insurance, medical schemes, and pension plans to eligible employees[67](index=67&type=chunk) [Treasury Policies](index=26&type=section&id=4.10%20库务政策) The Group is mainly exposed to foreign currency risk arising from monetary assets and liabilities denominated in Renminbi and US dollars; management monitors foreign exchange risk from time to time but did not enter into any financial derivatives for hedging purposes during the period - The Group is primarily exposed to foreign currency risk from monetary assets and liabilities denominated in Renminbi and US dollars arising from its sales and purchase activities[68](index=68&type=chunk) - During the period, the Group did not enter into any financial derivatives for hedging purposes, but management monitors foreign exchange risk from time to time and will take appropriate measures when there are significant exchange rate fluctuations[68](index=68&type=chunk) [Interim Dividend](index=26&type=section&id=4.11%20中期股息) The Board of Directors has resolved not to declare any interim dividend for the period - The Board of Directors has resolved not to declare any interim dividend for the period[69](index=69&type=chunk) [Material Acquisitions, Disposals, Significant Investments, and Future Plans for Significant Investments](index=27&type=section&id=4.12%20重大收购、出售、重大投资以及重大投资之未来计划) During the period, the company acquired a 15% equity interest in Shin Ito Brand Distribution Limited for US$0.6 million, making it a wholly-owned subsidiary, to gain full control and grow the "SKINS" business, thereby enhancing operational efficiency and profitability - On February 25, 2025, the Company acquired 600,000 shares (representing 15% of its entire issued shares) of Shin Ito Brand Distribution Limited for **US$0.6 million** (approximately HK$4.7 million)[70](index=70&type=chunk) - Upon completion of the acquisition, the Company holds 100% of the equity interest in Shin Ito, making it a wholly-owned subsidiary of the Company[70](index=70&type=chunk) - The Board believes the acquisition will enhance flexibility in Shin Ito's strategic direction and daily management, improve the Group's operational efficiency, and plans to grow the "SKINS" business through brand repositioning, product development, and distribution network upgrades[72](index=72&type=chunk) [Future Prospects](index=28&type=section&id=4.13%20未来前景) Looking ahead to the second half of the year, the Group will capitalize on China's economic policy dividends, with the retail segment focusing on consumption upgrades and digital transformation, and the brand business implementing differentiated development paths to address market changes and optimize operational efficiency from a solid foundation - The Group will seize policy dividends from the Chinese government, such as expanding domestic demand and optimizing the consumption environment, to deepen its strategic layout and drive high-quality development[75](index=75&type=chunk) - The retail segment will strengthen its "youthful and diversified" brand layout by introducing international luxury brands and emerging local designer brands, while deepening its omni-channel digital transformation[75](index=75&type=chunk) - The brand business will implement differentiated development paths: **SKINS** will advance the development of mass-market product lines, **SBT** will explore the health management market in the Greater Bay Area and Southeast Asia, and **"Hakuryu"** sake will accelerate promotion in key and North American markets[76](index=76&type=chunk) [Other Information](index=29&type=section&id=V.%20其他信息) [Purchase, Sale or Redemption of the Company's Listed Securities](index=29&type=section&id=5.1%20购买、出售或赎回本公司的已上市证券) 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[77](index=77&type=chunk) [Events After the Reporting Period](index=29&type=section&id=5.2%20报告期后事项) As of the date of this announcement, no significant events affecting the Group have occurred after the reporting period - No significant events affecting the Group have occurred after June 30, 2025, and up to the date of this announcement[78](index=78&type=chunk) [Corporate Governance Practices](index=29&type=section&id=5.3%20企业管治常规) The Company has complied with the Corporate Governance Code as set out in Appendix C1, Part 2 of the Listing Rules during the period, with a deviation where the roles of Chairman and Chief Executive Officer are held by the same individual, and a past issue of an independent non-executive director serving for an extended period, which has since been resolved by appointing a new independent non-executive director - The Company has complied with the Corporate Governance Code as set out in Appendix C1, Part 2 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited during the period[79](index=79&type=chunk) - **Deviation**: The roles of Chairman and Chief Executive Officer are both held by Mr Cheng Tun Nei; the Board believes this arrangement provides strong and consistent leadership[80](index=80&type=chunk) - The issue of an independent non-executive director serving for an extended period has been resolved: following the appointment of Ms Ma Yin Fan on June 20, 2025, the Company has re-complied with Code Provision B.2.4(b) of the Corporate Governance Code[80](index=80&type=chunk) [Review of Interim Results](index=30&type=section&id=5.4%20审阅中期业绩) The Company's Audit Committee has reviewed with management the accounting policies and practices adopted by the Group and discussed financial reporting matters, including the interim results announcement and interim report - The Company's Audit Committee, comprising three independent non-executive directors, has reviewed with management the accounting policies and practices adopted by the Group[81](index=81&type=chunk) - The Audit Committee has discussed audit, internal control, and financial reporting matters, including the review of the Group's interim results announcement and interim report for the period[81](index=81&type=chunk) [Publication of Interim Results and Interim Report](index=30&type=section&id=5.5%20刊发中期业绩及中期报告) This announcement is published on the websites of the Stock Exchange and the Company, and the unaudited interim report for the period containing all information required by the Listing Rules will be dispatched to shareholders and made available on or before September 30, 2025 - This announcement is published on the website of the Stock Exchange at www.hkexnews.hk and on the Company's website at www.symphonyholdings.com[82](index=82&type=chunk) - The unaudited interim report for the period containing all information required by the Listing Rules will be dispatched to the Company's shareholders and made available on the above websites on or before September 30, 2025[82](index=82&type=chunk) [Board of Directors](index=30&type=section&id=5.6%20董事会成员) As of the date of this announcement, the Board of Directors consists of four executive directors and three independent non-executive directors, with Mr Cheng Tun Nei serving as Chairman and Chief Executive Officer - The Board of Directors comprises executive directors Mr Cheng Tun Nei (Chairman and Chief Executive Officer), Mr Chan Kar Lee, Mr Li Chang Ming, and Ms Fung Kim Wan[83](index=83&type=chunk) - The independent non-executive directors are Mr Shum Pui Kay, Mr Wah Wang Kei, and Ms Ma Yin Fan[83](index=83&type=chunk)

[Interim Results Announcement](index=1&type=section&id=Interim%20Results%20Announcement) This report presents the unaudited interim financial statements for the six months ended June 30, 2025, including management's discussion and analysis, and other relevant disclosures [GEM Features and Disclaimer](index=1&type=section&id=GEM%20Features%20and%20Disclaimer) This section outlines the GEM market's role as a listing platform for SMEs, noting its higher investment risks, while the Stock Exchange disclaims responsibility for this announcement's content, and directors assume full accountability for its accuracy - The GEM market provides a listing platform for small and medium-sized companies, but it carries higher investment risks[3](index=3&type=chunk) - Hong Kong Exchanges and Clearing Limited and the Stock Exchange are not responsible for the content of this announcement and make no representations regarding it[3](index=3&type=chunk) - The company's directors collectively and individually assume full responsibility for this announcement, confirming the information is accurate, complete, and not misleading[3](index=3&type=chunk) [Interim Results (Unaudited)](index=2&type=section&id=Interim%20Results%20%28Unaudited%29) This section presents the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025, including the statement of profit or loss and other comprehensive income, statement of financial position, statement of changes in equity, and statement of cash flows, reflecting operational performance, financial condition, and cash flows during the period [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&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 significantly increased, but operating loss and loss for the period both substantially widened, primarily due to losses from the disposal of a joint venture and an associate, alongside increased administrative expenses Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 300,562 | 214,841 | | Cost of sales and services | (252,873) | (183,031) | | Gross profit | 47,689 | 31,810 | | Operating loss | (60,089) | (11,923) | | Loss before tax | (50,746) | (12,563) | | Loss for the period | (29,102) | (14,690) | | Loss for the period attributable to owners of the Company | (28,372) | (6,049) | | Basic and diluted loss per share (cents per share) | (1.87) | (0.40) | - Loss on disposal of a joint venture was **RMB 16,142 thousand**, and loss on partial disposal of an associate was **RMB 22,097 thousand**[4](index=4&type=chunk) - Administrative expenses increased from **RMB 37,866 thousand** in 2024 to **RMB 62,567 thousand** in 2025[4](index=4&type=chunk) [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets and net assets slightly decreased, but net current assets significantly increased, indicating an improvement in liquidity Condensed Consolidated Statement of Financial Position Key Data | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total assets | 5,330,276 | 5,516,277 | | Current assets | 1,172,380 | 1,101,413 | | Current liabilities | 870,873 | 1,037,109 | | Net current assets | 301,507 | 64,304 | | Net assets | 3,960,620 | 3,964,803 | - Investment in associates decreased from **RMB 2,597,989 thousand** as of December 31, 2024, to **RMB 2,354,557 thousand** as of June 30, 2025[6](index=6&type=chunk) - Cash and cash equivalents increased from **RMB 147,634 thousand** as of December 31, 2024, to **RMB 183,040 thousand** as of June 30, 2025[6](index=6&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) Total equity for the period slightly decreased, primarily due to a negative total comprehensive income for the period, accompanied by a reduction in non-controlling interests Condensed Consolidated Statement of Changes in Equity Key Data | Indicator | June 30, 2025 (RMB thousands) | January 1, 2025 (RMB thousands) | | :--- | :--- | :--- | | Equity attributable to owners of the Company | 3,710,875 | 3,709,800 | | Non-controlling interests | 249,745 | 255,003 | | Total equity | 3,960,620 | 3,964,803 | - Total comprehensive income for the period was **RMB (533) thousand**, compared to **RMB 12,247 thousand** in the same period last year[8](index=8&type=chunk) - Non-controlling interests decreased by **RMB 5,258 thousand** during the period[8](index=8&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, the Group experienced net cash outflow from operating activities, but a significant increase in net cash inflow from investing activities ultimately led to a net increase in cash and cash equivalents Condensed Consolidated Statement of Cash Flows Key Data | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net cash (used in)/from operating activities | (100,772) | 155,028 | | Net cash from/(used in) investing activities | 243,380 | (189,609) | | Net cash (used in)/from financing activities | (107,980) | 54,126 | | Net increase in cash and cash equivalents | 34,628 | 19,545 | | Cash and cash equivalents at end of period | 183,040 | 176,155 | - Net cash from investing activities shifted from an outflow in the prior period to an inflow this period, likely related to the disposal of associate shares[9](index=9&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the condensed consolidated financial statements, covering general information, accounting policies, revenue breakdown, segment information, finance costs, taxation, loss per share, dividends, receivables and payables, share capital, related party transactions, and financial guarantees, offering context and specifics for understanding the financial data [General Information](index=8&type=section&id=General%20Information) The Company is a Sino-foreign joint stock limited liability company incorporated in China, with H shares listed on GEM, primarily engaged in investment holding, while its subsidiaries operate diverse businesses including tourism, wine, metal products, and LED devices - The Company's H shares are listed on GEM, with its principal business being investment holding[10](index=10&type=chunk) - Subsidiary businesses encompass tourism and leisure, wine production and sales, metal product sales and procurement, and LED device sales and production[10](index=10&type=chunk) [Basis of Preparation and Significant Accounting Policies](index=8&type=section&id=Basis%20of%20Preparation%20and%20Significant%20Accounting%20Policies) The condensed consolidated financial statements are prepared in accordance with HKAS 34 and the GEM Listing Rules, reviewed by the audit committee, with no material impact on accounting policies or reported amounts from new and revised HKFRSs adopted this period - The condensed consolidated financial statements are prepared in accordance with HKAS 34 and the GEM Listing Rules[11](index=11&type=chunk) - The adoption of new and revised HKFRSs had no material impact on the Group's accounting policies or reported amounts[11](index=11&type=chunk) - The condensed consolidated financial statements are unaudited but have been reviewed by the Audit Committee[12](index=12&type=chunk) [Revenue](index=9&type=section&id=Revenue) Total revenue for the period increased by 39.9% year-on-year, primarily driven by significant growth in metal product sales and shuttle bus services, with tourism and leisure services also showing substantial improvement Revenue from Contracts with Customers by Major Product or Service Line | Product or Service Line | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Metal products | 190,238 | 128,573 | | Shuttle bus services | 68,680 | 56,187 | | LED devices | 26,539 | 25,646 | | Tourism and leisure services | 11,169 | 182 | | Wine and related products | 3,887 | 4,253 | | Others | 49 | – | | **Total Revenue** | **300,562** | **214,841** | - Revenue from metal products increased by **48.0%** year-on-year, serving as the primary driver of revenue growth this period[14](index=14&type=chunk) - Tourism and leisure services revenue significantly increased from **RMB 182 thousand** to **RMB 11,169 thousand**[14](index=14&type=chunk) [Other Gains, Income and Losses, Net](index=9&type=section&id=Other%20Gains%2C%20Income%20and%20Losses%2C%20Net) Net other gains, income, and losses for the period resulted in a loss of RMB 1,817 thousand, an expansion of the loss compared to the prior period, mainly due to net losses in the "Others" category Other Gains, Income and Losses, Net | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Bank interest income | 456 | 556 | | Government grants | 25 | 247 | | Tax incentives | 199 | 1,788 | | Others | (2,497) | (2,962) | | **Total** | **(1,817)** | **(371)** | - Government grants and tax incentives both significantly decreased compared to the same period last year[15](index=15&type=chunk) [Segment Information](index=10&type=section&id=Segment%20Information) The Group operates four reportable segments: tourism development, investment holding, trading of metal products, and sales and production of LED devices, with metal product trading contributing the most revenue, investment holding showing significant growth in share of profits of associates, and China (excluding Hong Kong) being the primary source of revenue - The Group has four reportable segments: tourism development, investment holding, trading of metal products, and sales and production of LED devices[17](index=17&type=chunk) Segment Revenue and Profit/Loss | Segment | 2025 Revenue (RMB thousands) | 2024 Revenue (RMB thousands) | 2025 Segment (Loss)/Profit (RMB thousands) | 2024 Segment Profit/(Loss) (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Tourism Development | 79,849 | 56,369 | (1,652) | 5,821 | | Investment Holding | – | – | (14,042) | 19,727 | | Trading of Metal Products | 190,238 | 128,573 | 3,072 | 1,867 | | Sales and Production of LED Devices | 26,539 | 25,646 | (6,936) | (6,614) | | All Other Segments | 3,936 | 4,253 | (1,169) | (437) | | **Total** | **300,562** | **214,841** | **(20,727)** | **20,364** | - Share of profits of associates increased from **RMB 22,859 thousand** in 2024 to **RMB 30,247 thousand** in 2025[19](index=19&type=chunk) Geographical Revenue and Non-current Assets | Region | 2025 Revenue (RMB thousands) | 2024 Revenue (RMB thousands) | 2025 Non-current Assets (RMB thousands) | 2024 Non-current Assets (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | China (excluding Hong Kong) | 296,675 | 203,201 | 3,348,586 | 3,596,161 | | United States | 3,887 | 4,253 | 14,612 | 15,072 | | Singapore | – | 7,387 | – | – | | Hong Kong | – | – | – | 1 | | **Total** | **300,562** | **214,841** | **3,363,198** | **3,611,234** | - Revenue from Customer A (Metal Products Trading segment) increased from **RMB 86,959 thousand** in 2024 to **RMB 190,238 thousand** in 2025[24](index=24&type=chunk) [Finance Costs, Net](index=13&type=section&id=Finance%20Costs%2C%20Net) Net finance costs for the period amounted to RMB 19,896 thousand, a decrease from the prior period, primarily comprising interest on bank and other borrowings and foreign exchange losses Finance Costs, Net | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest on bank, other borrowings and lease liabilities | 19,181 | 22,855 | | Net foreign exchange losses | 715 | 590 | | **Total** | **19,896** | **23,445** | - Interest expenses on bank, other borrowings, and lease liabilities decreased[26](index=26&type=chunk) [Income Tax Credit/Expense](index=14&type=section&id=Income%20Tax%20Credit%2FExpense) The period recorded an income tax credit of RMB 21,644 thousand, primarily due to adjustments for over-provision in prior years in China, a stark contrast to the income tax expense in the same period last year Income Tax Credit/Expense | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current tax – China | 1,118 | 2,696 | | Over-provision in prior years – China | (22,217) | – | | Deferred tax | (547) | (571) | | **Total** | **(21,644)** | **2,127** | - Over-provision in prior years in China of **RMB 22,217 thousand** was the main reason for the income tax credit this period[27](index=27&type=chunk) - The Company's subsidiaries established in China are generally subject to income tax at a rate of **25%**[28](index=28&type=chunk) [Loss for the Period](index=14&type=section&id=Loss%20for%20the%20Period) The loss for the period is presented after deducting expenses such as amortization of other intangible assets and depreciation Loss for the Period Deducted Items | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Amortisation of other intangible assets | 6,766 | 6,796 | | Depreciation | 15,068 | 14,645 | [Loss Per Share](index=14&type=section&id=Loss%20Per%20Share) For the six months ended June 30, 2025, basic and diluted loss per share attributable to owners of the Company significantly increased to RMB 1.87 cents, primarily due to the expanded loss for the period Loss Per Share | Indicator | 2025 (RMB) | 2024 (RMB) | | :--- | :--- | :--- | | Basic and diluted loss per share (cents per share) | (1.87) | (0.40) | | Loss for the period attributable to owners of the Company | 28,372,000 | 6,049,000 | | Weighted average number of ordinary shares in issue | 1,514,464,000 | 1,514,464,000 | - Basic and diluted loss per share are identical, with no adjustments made[30](index=30&type=chunk) [Dividends](index=14&type=section&id=Dividends) The Board of Directors 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 (2024: nil)[30](index=30&type=chunk) [Property, Plant and Equipment](index=15&type=section&id=Property%2C%20Plant%20and%20Equipment) During the period, the Group made additions to property, plant and equipment amounting to approximately RMB 5.90 million - Additions to property, plant and equipment during the period amounted to approximately **RMB 5.90 million**[31](index=31&type=chunk) [Trade and Other Receivables](index=15&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables slightly increased, with the aging analysis of trade receivables showing that most are due within three months, indicating diversified credit risk Trade and Other Receivables | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade and bills receivables (net) | 168,278 | 168,602 | | Other receivables (net) | 762,967 | 757,239 | | Prepayments to suppliers | 3,259 | 11,058 | | Prepayments | 38,003 | 2,077 | | **Total** | **972,507** | **938,976** | Aging Analysis of Trade Receivables | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Less than 3 months | 135,029 | 118,720 | | 3 to 6 months | 32,096 | 49,356 | | 6 to 12 months | 720 | 526 | | Over 1 year | 433 | – | | **Total** | **168,278** | **168,602** | - The credit period granted to customers is generally three months, and there is no excessive concentration of credit risk[32](index=32&type=chunk) [Trade and Other Payables](index=16&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables decreased, mainly due to a reduction in accrued expenses and other payables, with the aging analysis of trade payables showing a significant portion due over one year Trade and Other Payables | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade payables | 104,999 | 107,384 | | Contract liabilities | 2,024 | 1,236 | | Accrued expenses and other payables | 169,134 | 219,538 | | Dividends payable | 21,194 | 21,313 | | Salaries and staff welfare payable | 12,221 | 11,439 | | Amounts due to associates | 74 | 2,794 | | Amounts due to related parties | 6,177 | 6,327 | | **Total** | **315,823** | **370,031** | Aging Analysis of Trade Payables | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | 0 to 90 days | 22,995 | 38,769 | | 91 to 180 days | 67 | 966 | | 181 to 360 days | 21,379 | 1,918 | | Over 1 year | 60,558 | 65,731 | | **Total** | **104,999** | **107,384** | [Share Capital](index=17&type=section&id=Share%20Capital) The Company's registered, issued, and fully paid share capital remained unchanged during the period, comprising both unlisted shares and H shares Share Capital Composition | Share Class | Number of Shares (thousand shares) | Amount (RMB thousands) | | :--- | :--- | :--- | | Unlisted shares | 700,000 | 70,000 | | H shares | 814,464 | 81,446 | | **Total** | **1,514,464** | **151,446** | - The par value per share is **RMB 0.10**[34](index=34&type=chunk) [Significant Related Party Transactions](index=17&type=section&id=Significant%20Related%20Party%20Transactions) This section discloses balances with related parties and key management personnel remuneration, with the latter showing a decrease compared to the prior period Balances with Related Parties | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Amounts due from associates | 460 | 390 | | Amounts due to associates | 74 | 2,794 | | Amounts due to related companies controlled by Peking University | 5,732 | 5,882 | Key Management Personnel Remuneration | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Short-term employee benefits | 1,729 | 2,121 | | Post-employment benefits | 254 | 257 | | **Total** | **1,983** | **2,378** | [Financial Guarantees](index=18&type=section&id=Financial%20Guarantees) The Group provided financial guarantees of RMB 100 million for bank facilities granted to an associate, which has fully drawn down the facilities - The Group issued two guarantees for bank facilities granted to an associate, with a maximum limit of **RMB 100,000,000**[36](index=36&type=chunk) - The associate has drawn down **RMB 100,000,000** of the facilities[36](index=36&type=chunk) [Capital Commitments](index=18&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group's contracted but unprovided capital commitments for property, plant and equipment significantly increased, alongside committed capital contributions to an associate Capital Commitments | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Contracted but not provided for – property, plant and equipment | 98,192 | 69,270 | | Committed capital contributions to an associate | 3,478 | 3,478 | - Capital commitments for property, plant and equipment increased by approximately **41.7%** year-on-year[37](index=37&type=chunk) [Management Discussion and Analysis](index=19&type=section&id=Management%20Discussion%20and%20Analysis) This section details the Group's performance and strategies across tourism development, investment holding, LED device sales and production, metal product trading, and other businesses, reviewing financial conditions, liquidity, significant investments, and risk management, while also outlining future challenges and opportunities [Business Review](index=19&type=section&id=Business%20Review) The Group's diversified businesses include tourism development, investment holding, LED device sales and production, metal product trading, and other ventures; tourism benefited from favorable weather, investment holding involved arbitration and disposal of shares in Qingniao Fire, LED business attracted new investors, and vocational education expansion is planned [Tourism Development](index=19&type=section&id=Tourism%20Development) The Group's tourism business in Nanyue District, Hunan Province, benefited from favorable weather, with visitor and pilgrim numbers increasing by approximately 19% year-on-year; additionally, the Group plans to establish a joint venture in Gansu Province to invest in sightseeing rail transit and supporting facilities to expand tourism project investments - For the six months ended June 30, 2025, the number of visitors and pilgrims to Hengshan Scenic Area increased by approximately **19%** year-on-year[39](index=39&type=chunk) - The Company's non-wholly owned subsidiary, Chuanqi Tourism (Hunan) Co Ltd, will invest **RMB 49 million** to establish a joint venture for the development and operation of sightseeing rail transit, sightseeing buses, and supporting facilities within the Zha Ga Na Scenic Area in Diebu County, Gansu Province[40](index=40&type=chunk) [Investment Holding](index=19&type=section&id=Investment%20Holding) The Group's investment holding business includes private equity funds, semiconductor materials and display device companies, shares in Qingniao Fire, and other financial assets; regarding the disposal of Qingniao Fire shares, an arbitration award requires the buyer to return 70,044,000 shares, and the Group has sold 20,000,000 Qingniao Fire shares under the disposal authorization, with net proceeds of approximately RMB 232.1 million to be used for debt repayment - Investment holding business primarily includes private equity funds, semiconductor materials and display device companies, and shares in Qingniao Fire Co Ltd[41](index=41&type=chunk) - The Beijing Arbitration Commission ruled that the buyer must return **70,044,000** shares of Qingniao Fire to the Company[44](index=44&type=chunk) - The Company has sold a total of **20,000,000** shares of Qingniao Fire under the disposal authorization, with gross proceeds of approximately **RMB 233.4 million** and net proceeds of approximately **RMB 232.1 million**[49](index=49&type=chunk) - The net proceeds from the disposal will be used to repay the Group's bank and other borrowings to strengthen its liquidity position[48](index=48&type=chunk) - As of the date of this announcement, the Group holds **186,569,363** shares of Qingniao Fire, representing approximately **21.4%** equity interest[50](index=50&type=chunk) [Sales and Production of LED Devices](index=22&type=section&id=Sales%20and%20Production%20of%20LED%20Devices) The Company, through Guangdong Xinrui Liuming Optoelectronics Co Ltd, engages in the R&D, production, and sales of high-end ceramic high-power LED devices and modules; recently, Guangdong Liuming received an investment of RMB 50.63 million, which will support its growth and development - Primarily engaged in the R&D, production, and sales of high-end ceramic high-power LED devices and modules, focusing on special light source applications[51](index=51&type=chunk) - Investors injected **RMB 50.63 million** into Guangdong Liuming, reducing the Group's effective equity interest in Guangdong Liuming from **94%** to approximately **62.98%**[52](index=52&type=chunk) [Metal Products Trading](index=23&type=section&id=Metal%20Products%20Trading) During the period, the Group engaged in the sale and procurement of metal products in China - The Group engaged in the sale and procurement of metal products in China during the period[53](index=53&type=chunk) [Other Businesses](index=23&type=section&id=Other%20Businesses) The Group operates a winery in the United States and has completed the acquisition of a 70% equity interest in Beijing Qingniao Vocational Education Technology Development Co Ltd to expand into vocational education and diversify its business - The Group operates a winery in Virginia, USA, producing and selling wine and related products[54](index=54&type=chunk) - The acquisition of a **70%** equity interest in Beijing Qingniao Vocational Education Technology Development Co Ltd for a consideration of **RMB 13.05 million** has been completed, aiming to diversify business into vocational education[54](index=54&type=chunk) [Prospects](index=24&type=section&id=Prospects) Looking ahead to the second half of 2025, global economic growth is expected to remain sluggish, posing challenges for the Group with weakening local consumption and reduced demand for products and services; in response, the Group will implement cost control, enhance operational efficiency, expand new customer bases and product portfolios, and prudently evaluate potential investment opportunities to maintain profitability and competitive advantages - Global economic growth is expected to remain sluggish in the second half of 2025, and the Group will face weakening local consumer spending and reduced demand for products and services[55](index=55&type=chunk) - The Group will implement measures including closely monitoring and controlling costs, improving operational efficiency, and expanding new customer segments and product portfolios[55](index=55&type=chunk) - The Group will continue to adopt a prudent approach to explore and evaluate potential investment opportunities, aiming to achieve a balanced and diversified investment portfolio[55](index=55&type=chunk) [Financial Review](index=24&type=section&id=Financial%20Review) This section provides a detailed financial review of the Group's business segments, highlighting significant growth in total revenue and gross profit, but also a substantial increase in loss attributable to owners of the Company due to several non-recurring losses, including an alleged misappropriation event, disposal of an associate, and a joint venture loss [Tourism Development (Financial)](index=24&type=section&id=Tourism%20Development%20%28Financial%29) Tourism development business revenue increased by 41.7% year-on-year, primarily due to improved performance after being adversely affected by extreme weather in the prior period; however, the Group recorded a loss of approximately RMB 24 million due to an alleged misappropriation of funds by a cashier - Tourism development business revenue was approximately **RMB 79.8 million**, an increase of **41.7%** compared to the same period in 2024[56](index=56&type=chunk) - The Group recorded a loss of approximately **RMB 24 million** due to an alleged misappropriation event, which is currently under forensic investigation[57](index=57&type=chunk) [Investment Holding (Financial)](index=25&type=section&id=Investment%20Holding%20%28Financial%29) Segment total assets for investment holding business decreased by 5.7%, primarily due to the disposal of 20,000,000 shares in associate Qingniao Fire, resulting in a recorded loss of approximately RMB 22.1 million - Segment total assets for investment holding business decreased by **5.7%** to approximately **RMB 4.0255 billion**[58](index=58&type=chunk) - A loss of approximately **RMB 22.1 million** was recorded due to the partial disposal of an equity interest in an associate[58](index=58&type=chunk) [Sales and Production of LED Devices (Financial)](index=25&type=section&id=Sales%20and%20Production%20of%20LED%20Devices%20%28Financial%29) Revenue from the sales and production of LED devices business was approximately RMB 26.5 million, representing a 3.5% year-on-year increase - Revenue from the sales and production of LED devices business was approximately **RMB 26.5 million**, an increase of **3.5%** year-on-year[59](index=59&type=chunk) [Metal Products Trading (Financial)](index=25&type=section&id=Metal%20Products%20Trading%20%28Financial%29) Revenue from metal products trading business was approximately RMB 190.2 million, a 48.0% year-on-year increase, primarily attributed to higher transaction volumes; however, gross profit margin decreased to 1.5% due to market competition and price fluctuations - Revenue from metal products trading business was approximately **RMB 190.2 million**, an increase of **48.0%** year-on-year[60](index=60&type=chunk) - Gross profit margin decreased from **2.1%** in 2024 to **1.5%** in the current period[60](index=60&type=chunk) [Other Businesses (Financial)](index=25&type=section&id=Other%20Businesses%20%28Financial%29) Winery business revenue remained largely stable year-on-year, amounting to approximately RMB 3.9 million - Winery business revenue was approximately **RMB 3.9 million**, remaining largely stable year-on-year[61](index=61&type=chunk) [Revenue and Gross Profit](index=25&type=section&id=Revenue%20and%20Gross%20Profit) The Group's total revenue increased by 39.9% year-on-year to RMB 300.6 million, and gross profit grew by 49.9% to RMB 47.7 million, mainly driven by improved tourism development business and increased metal product trading volume - Total revenue was approximately **RMB 300.6 million**, an increase of **39.9%** compared to the same period in 2024[62](index=62&type=chunk) - Gross profit increased by **49.9%** to approximately **RMB 47.7 million**[62](index=62&type=chunk) [Loss on Disposal of a Joint Venture](index=25&type=section&id=Loss%20on%20Disposal%20of%20a%20Joint%20Venture) The Group recorded a loss of approximately RMB 16.1 million due to the dissolution of an immaterial joint venture, primarily resulting from the reclassification of exchange reserves to profit or loss - A loss of approximately **RMB 16.1 million** was recorded due to the dissolution of an immaterial joint venture[63](index=63&type=chunk) [Loss on Partial Disposal of an Associate](index=26&type=section&id=Loss%20on%20Partial%20Disposal%20of%20an%20Associate) The Group recorded a loss of approximately RMB 22.1 million due to the partial disposal of associate Qingniao Fire under the disposal authorization - A loss of approximately **RMB 22.1 million** was recorded due to the partial disposal of associate Qingniao Fire[64](index=64&type=chunk) [Finance Costs, Net (Financial)](index=26&type=section&id=Finance%20Costs%2C%20Net%20%28Financial%29) Net finance costs amounted to approximately RMB 19.9 million, primarily comprising interest on bank and other borrowings, interest on lease liabilities, and net exchange differences - Finance costs were approximately **RMB 19.9 million**, a decrease from **RMB 23.4 million** in the same period last year[65](index=65&type=chunk) [Share of Profits of Associates](index=26&type=section&id=Share%20of%20Profits%20of%20Associates) The Group's share of profits of associates increased by 32.3% year-on-year to approximately RMB 30.2 million, mainly due to the relatively unsatisfactory financial performance of associates in the prior period - Share of profits of associates was approximately **RMB 30.2 million**, an increase of **32.3%** year-on-year[66](index=66&type=chunk) [Share of Losses of Joint Ventures](index=26&type=section&id=Share%20of%20Losses%20of%20Joint%20Ventures) The Group's share of losses of joint ventures was approximately RMB 1 million, an increase compared to the prior period - Share of losses of joint ventures was approximately **RMB 1 million**, compared to **RMB 54 thousand** in the same period last year[67](index=67&type=chunk) [Income Tax Credit/Expense (Financial)](index=26&type=section&id=Income%20Tax%20Credit%2FExpense%20%28Financial%29) The period recorded an income tax credit of approximately RMB 21.6 million, primarily comprising net China corporate income tax credit and deferred tax credit - Income tax credit for the period was approximately **RMB 21.6 million**, compared to an expense of **RMB 2.2 million** in the same period last year[68](index=68&type=chunk) [Loss Attributable to Owners of the Company](index=26&type=section&id=Loss%20Attributable%20to%20Owners%20of%20the%20Company) Loss attributable to owners of the Company significantly increased by 369.0% year-on-year to approximately RMB 28.4 million, primarily due to several non-recurring losses including an alleged misappropriation event, partial disposal of an associate, and dissolution of a joint venture - Loss attributable to owners of the Company was approximately **RMB 28.4 million**, an increase of **369.0%** year-on-year[69](index=69&type=chunk) - Primarily attributed to: a loss of approximately **RMB 24 million** from an alleged misappropriation event, a loss of approximately **RMB 22.1 million** from the partial disposal of Qingniao Fire, and a loss of approximately **RMB 16.1 million** from the dissolution of an immaterial joint venture[69](index=69&type=chunk) [Financial Position](index=27&type=section&id=Financial%20Position) The Group's current ratio increased to 1.35 and gearing ratio decreased to 22.8%, indicating improved liquidity and reduced financial leverage, mainly due to a decrease in bank and other borrowings Financial Ratios | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current ratio | 1.35 | 1.06 | | Gearing ratio | 22.8% | 25.0% | - The increase in current ratio and decrease in gearing ratio were primarily due to a reduction in the Group's bank and other borrowings during the period[70](index=70&type=chunk) [Significant Acquisitions and Disposals of Subsidiaries and Affiliated Companies](index=27&type=section&id=Significant%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%20and%20Affiliated%20Companies) Aside from those already disclosed in this report, the Group had no other significant acquisitions or disposals of subsidiaries and affiliated companies requiring disclosure during the period - For the six months ended June 30, 2025, the Group did not undertake any significant acquisitions or disposals requiring disclosure under the GEM Listing Rules[71](index=71&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=27&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) The Group primarily relies on internal financial resources and corporate borrowings for operations, with cash and cash equivalents of approximately RMB 183.0 million at period-end; total outstanding borrowings were approximately RMB 901.4 million, mostly due within one year, bearing fixed and floating interest rates - As of June 30, 2025, the Group had cash and cash equivalents of approximately **RMB 183.0 million**[72](index=72&type=chunk) - The Group's total outstanding borrowings amounted to approximately **RMB 901.4 million**[72](index=72&type=chunk) Outstanding Borrowings Repayment Schedule | Repayment Period | Amount (RMB thousands) | | :--- | :--- | | Within one year | 534,800 | | One to two years | 84,100 | | Two to five years | 178,000 | | More than five years | 104,500 | | **Total** | **901,400** | - Approximately **RMB 556.4 million** bears interest at fixed rates, and approximately **RMB 345.0 million** bears interest at floating rates, with annual interest rates ranging from zero to **5.4%**[72](index=72&type=chunk) [Significant Investments Held](index=27&type=section&id=Significant%20Investments%20Held) The Group holds financial assets totaling approximately RMB 758.7 million, representing 14.2% of total assets, primarily including a 13.7% equity interest in Shanghai Xianyao Display Technology Co Ltd; the Group's investment strategy is to diversify risk, seize market opportunities, and plans to invest in industries such as tourism and leisure, new materials, semiconductors, and high-end equipment manufacturing - The Group holds financial assets at fair value through other comprehensive income and at fair value through profit or loss totaling approximately **RMB 758.7 million**, representing **14.2%** of total assets[74](index=74&type=chunk) - Holds a **13.7%** equity interest in Shanghai Xianyao Display Technology Co Ltd, with a fair value of approximately **RMB 712.8 million**[75](index=75&type=chunk) - The investment strategy is to diversify assets and businesses into promising industries, including tourism and leisure, new materials, semiconductor products and technology, and high-end equipment manufacturing[75](index=75&type=chunk) [Future Plans for Material Investments or Capital Assets](index=28&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) As of June 30, 2025, the Group had no material investment plans other than those already disclosed - As of June 30, 2025, the Group had no material investment plans[76](index=76&type=chunk) [Contingent Liabilities](index=28&type=section&id=Contingent%20Liabilities) The Group has contingent liabilities of approximately RMB 100 million for guarantees provided for bank facilities granted to an associate - The Group has contingent liabilities of approximately **RMB 100 million** for guarantees provided for bank facilities granted to an associate[77](index=77&type=chunk) [Foreign Currency Risk](index=28&type=section&id=Foreign%20Currency%20Risk) The Group is exposed to foreign currency risks from USD, RMB, and HKD, but due to most business activities being denominated in RMB, there is a natural hedge, thus no foreign currency hedging policy has been formulated - The Group is exposed to foreign currency risks from USD, RMB, and HKD[79](index=79&type=chunk) - The Group has not formulated a foreign currency hedging policy, as turnover and most production costs are denominated in RMB, providing a natural hedge[79](index=79&type=chunk) [Pledge of Assets](index=29&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group has pledged fixed assets of approximately RMB 197.7 million, investment properties of approximately RMB 333.6 million, and equity interests in an associate as collateral for bank and other borrowings - Fixed assets of approximately **RMB 197.7 million** have been pledged as collateral[80](index=80&type=chunk) - Investment properties of approximately **RMB 333.6 million** have been pledged as collateral[80](index=80&type=chunk) - Equity interests in an associate have been pledged as collateral[80](index=80&type=chunk) [Employees and Remuneration Policies](index=29&type=section&id=Employees%20and%20Remuneration%20Policies) As of the end of the reporting period, the Group employed 740 staff, a 23.3% increase from the end of 2024; staff costs, including directors' emoluments, were approximately RMB 38.3 million, consistent with the increase in headcount, and the Group offers competitive remuneration packages and prioritizes workplace safety - The Group employed **740** staff, an increase of **23.3%** from the end of 2024[81](index=81&type=chunk) - Staff costs (including directors' emoluments, employee salaries, and contributions to retirement benefit schemes) were approximately **RMB 38.3 million**, an increase from **RMB 32.9 million** in the same period last year[81](index=81&type=chunk) - The Group provides employees with a competitive remuneration package, including medical and outbound insurance, and makes adequate and timely contributions to pension and MPF schemes[81](index=81&type=chunk) [Other Information](index=29&type=section&id=Other%20Information) This section discloses the interests of directors, supervisors, and chief executives, as well as substantial shareholders, in the company's shares, confirms compliance with corporate governance practices and the code for securities transactions by directors, and states that no listed securities were purchased, redeemed, or sold during the period, also outlining the audit committee's responsibilities [Directors', Supervisors' and Chief Executive's Interests and Short Positions in Shares and Underlying Shares](index=29&type=section&id=Directors%27%2C%20Supervisors%27%20and%20Chief%20Executive%27s%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares) As of June 30, 2025, Supervisor Ms Zhou Min held approximately 13.56% of the Company's issued unlisted shares through a trust, and Executive Director Mr Liu Ziyi beneficially owned approximately 0.37% of the Company's issued H shares Directors', Supervisors' and Chief Executive's Long Positions in Shares | Name | Capacity | Interests in Unlisted Shares (thousand shares) | Interests in H Shares (thousand shares) | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | :--- | | Ms Zhou Min | Beneficiary of a trust | 205,414 | – | 13.56% | | Mr Liu Ziyi | Beneficial owner | – | 3,000 | 0.20% | [Rights of Directors and Supervisors to Acquire Shares](index=30&type=section&id=Rights%20of%20Directors%20and%20Supervisors%20to%20Acquire%20Shares) During the period, no rights to acquire benefits by way of acquisition of shares in the Company were granted to or exercised by the directors and supervisors or their respective spouses or minor children - At no time during the period were any rights to acquire benefits by way of acquisition of shares in the Company granted to or exercised by the directors and supervisors or their respective spouses or minor children[84](index=84&type=chunk) [Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares and Underlying Shares](index=31&type=section&id=Substantial%20Shareholders%27%20and%20Other%20Persons%27%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares) As of June 30, 2025, several substantial shareholders and other persons held significant interests in the Company's issued share capital, including Peking University and its associated entities, Shenzhen Yingtai Industrial Investment Co Ltd and its associated entities, Zhai Yong and his associated entities, Heng Huat Investments Limited and its associated entities, Mongolia Energy Corporation Limited and its associated entities, and Huang Taomei and her associated entities Substantial Shareholders' and Other Persons' Long Positions in Shares | Shareholder Name | Capacity | Interests in Unlisted Shares (thousand shares) | Interests in H Shares (thousand shares) | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | :--- | | Peking University | Interest of controlled corporation | 85,000 | – | 5.61% | | Shenzhen Yingtai Industrial Investment Co Ltd | Beneficial owner | 115,000 | – | 7.59% | | Zhai Yong | Interest of controlled corporation | 130,000 | – | 8.58% | | Heng Huat Investments Limited | Interest of controlled corporation | 205,414 | – | 13.56% | | Mongolia Energy Corporation Limited | Interest of controlled corporation | 84,586 | – | 5.58% | | Asia Development Capital (HK) Limited | Beneficial owner | – | 126,214 | 8.33% | [Competing Interests](index=33&type=section&id=Competing%20Interests) As of June 30, 2025, no directors, supervisors, or their respective associates had any interests in businesses that compete or are likely to compete with the Group's businesses - No directors and supervisors and their respective associates had any interests in businesses that compete or are likely to compete with the Group's businesses[90](index=90&type=chunk) [Corporate Governance Practices](index=34&type=section&id=Corporate%20Governance%20Practices) The Board believes that the Company has complied with all code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the GEM Listing Rules for the six months ended June 30, 2025 - The Company has complied with all code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the GEM Listing Rules[92](index=92&type=chunk) [Purchase, Redemption or Sale of the Company's Listed Securities](index=34&type=section&id=Purchase%2C%20Redemption%20or%20Sale%20of%20the%20Company%27s%20Listed%20Securities) Neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities during the six months ended June 30, 2025 - Neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities during the six months ended June 30, 2025[93](index=93&type=chunk) [Code of Conduct Regarding Securities Transactions by Directors](index=34&type=section&id=Code%20of%20Conduct%20Regarding%20Securities%20Transactions%20by%20Directors) Upon enquiry, all directors have complied with the code of conduct for securities transactions adopted by the Company and the required standards of dealing set out in the GEM Listing Rules for the six months ended June 30, 2025 - All directors have complied with the code of conduct for securities transactions adopted by the Company and the required standards of dealing set out in the GEM Listing Rules[94](index=94&type=chunk) [Audit Committee](index=34&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors with Mr Tang Xuan as chairman, convened a meeting to review and approve the content of the Group's interim results report for the six months ended June 30, 2025 - The Audit Committee comprises three independent non-executive directors, with Mr Tang Xuan as chairman[95](index=95&type=chunk) - The Audit Committee has reviewed the Group's interim results report for the six months ended June 30, 2025[95](index=95&type=chunk) [Chairman of the Board and Date](index=34&type=section&id=Chairman%20of%20the%20Board%20and%20Date) This announcement was issued by Ms Zheng Zhong, Chairman of the Board, on August 29, 2025 - The Chairman of the Board is Zheng Zhong[95](index=95&type=chunk) - The announcement date is August 29, 2025[96](index=96&type=chunk)

[Performance and Operations Summary](index=1&type=section&id=%E6%A5%AD%E7%B8%BE%E5%8F%8A%E7%87%9F%E9%81%8B%E6%91%98%E8%A6%81) The company reported a net loss attributable to owners, primarily due to non-cash items, while enhancing brand exposure and achieving significant e-commerce sales growth H1 2025 Performance Summary ('000 HKD) | Metric | Amount ('000 HKD) | | :--- | :--- | | Revenue | 604,528 | | Gross Profit | 442,309 | | Loss Attributable to Owners | 57,959 | - Loss attributable to owners was primarily impacted by non-recurring, unrealized, and non-cash items, including fair value decreases in investment properties in Mainland China and Hong Kong, impairment of other assets in Shenzhen, and impairment provisions for right-of-use assets, totaling approximately **HKD 22.1 million**[3](index=3&type=chunk) - Increased brand exposure through celebrity endorsement effectively boosted sales of the Embry Form brand[3](index=3&type=chunk) - Enhanced e-commerce platform operations led to a **7.6% year-on-year increase** in overall e-commerce sales to **HKD 236.8 million**[3](index=3&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) [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the company reported revenue of HKD 604,528 thousand and gross profit of HKD 442,309 thousand, with a loss attributable to owners of HKD 57,959 thousand due to fair value changes in investment properties and asset impairments, resulting in a basic loss per share of 13.72 HK cents Condensed Consolidated Statement of Profit or Loss ('000 HKD) | Metric | June 30, 2025 ('000 HKD) | June 30, 2024 ('000 HKD) | Change | | :--- | :--- | :--- | :--- | | Revenue | 604,528 | 631,392 | -4.3% | | Cost of Sales | (162,219) | (153,068) | +6.0% | | Gross Profit | 442,309 | 478,324 | -7.5% | | Other Income and Gains, Net | 16,823 | 9,824 | +71.2% | | Selling and Distribution Expenses | (408,005) | (422,004) | -3.3% | | Administrative Expenses | (75,265) | (80,196) | -6.1% | | Fair Value Changes of Investment Properties | (14,349) | (43,674) | -67.2% | | Impairment of Other Assets | (5,484) | (22,065) | -75.1% | | Impairment of Right-of-Use Assets | (2,162) | (8,737) | -75.2% | | Loss Before Tax | (54,157) | (99,269) | -45.4% | | Income Tax Credit/(Expense) | (3,802) | 17,034 | N/A | | Loss for the Period Attributable to Owners of the Company | (57,959) | (82,235) | -29.5% | | Basic Loss Per Share (HK cents) | (13.72) | (19.47) | -29.5% | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the company's loss for the period was HKD 57,959 thousand, but total comprehensive income attributable to owners turned positive at HKD 4,858 thousand, significantly improving from a total comprehensive expense in the prior year, driven by exchange differences and revaluation surplus Condensed Consolidated Statement of Comprehensive Income ('000 HKD) | Metric | June 30, 2025 ('000 HKD) | June 30, 2024 ('000 HKD) | Change | | :--- | :--- | :--- | :--- | | Loss for the Period | (57,959) | (82,235) | -29.5% | | Exchange Differences Arising from Translation of Foreign Operations | 59,132 | (45,817) | N/A | | Revaluation Surplus | 4,915 | 3,341 | +47.1% | | Deferred Tax Charged to Revaluation Reserve | (1,230) | (835) | +47.3% | | Total Comprehensive Income/(Expense) for the Period Attributable to Owners of the Company | 4,858 | (125,546) | N/A | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the Group's total assets less current liabilities amounted to HKD 2,042,574 thousand, with net assets of HKD 1,727,410 thousand, reflecting an increase in net current assets and a significant rise in cash and cash equivalents Condensed Consolidated Statement of Financial Position ('000 HKD) | Metric | June 30, 2025 ('000 HKD) | December 31, 2024 ('000 HKD) | Change | | :--- | :--- | :--- | :--- | | Total Non-Current Assets | 1,653,224 | 1,634,025 | +1.2% | | Total Current Assets | 803,303 | 731,186 | +9.9% | | Total Current Liabilities | 413,953 | 415,698 | -0.4% | | Net Current Assets | 389,350 | 315,488 | +23.4% | | Total Assets Less Current Liabilities | 2,042,574 | 1,949,513 | +4.8% | | Total Non-Current Liabilities | 315,164 | 226,961 | +38.9% | | Net Assets | 1,727,410 | 1,722,552 | +0.3% | | Cash and Cash Equivalents | 212,742 | 163,434 | +30.2% | | Trade Receivables | 61,725 | 38,015 | +62.4% | | Trade and Bills Payables | 37,025 | 39,020 | -5.1% | [Notes](index=5&type=section&id=%E9%99%84%E8%A8%BB) [Basis of Preparation](index=5&type=section&id=1.1%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The condensed consolidated financial statements are prepared in accordance with the HKEX Listing Rules and HKAS 34 "Interim Financial Reporting" and should be read in conjunction with the 2024 annual consolidated financial statements - The financial statements are prepared in accordance with the Hong Kong Listing Rules and Hong Kong Accounting Standard 34 "Interim Financial Reporting"[8](index=8&type=chunk) - The condensed consolidated financial statements are prepared on a historical cost basis, except for investment properties which are measured at fair value[9](index=9&type=chunk) [Changes in Accounting Policies and Disclosures](index=5&type=section&id=1.2%20%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E8%AE%8A%E5%8B%95%E5%8F%8A%E6%8A%AB%E9%9C%B2) The revised HKAS 21 "Lack of Exchangeability" was adopted for the first time this period, with no significant impact on the prepared and presented results and financial position - The revised Hong Kong Accounting Standard 21 "Lack of Exchangeability" was adopted for the first time[10](index=10&type=chunk) - The adoption of the new standard had no significant impact on the results and financial position of past or current accounting periods[10](index=10&type=chunk) [Revenue and Segment Information](index=6&type=section&id=2.%20%E6%94%B6%E7%9B%8A%E5%8F%8A%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) For the six months ended June 30, 2025, total revenue from contracts with customers was HKD 604,528 thousand, primarily from the Mainland China market, accounting for 96.4% Revenue Analysis ('000 HKD) | Item | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Sale of Goods | 604,528 | 631,392 | Revenue by Geographical Market ('000 HKD) | Geographical Market | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Mainland China | 582,494 | 611,286 | | Hong Kong | 14,800 | 17,581 | | Others | 7,234 | 2,525 | | **Total Revenue from Contracts with Customers** | **604,528** | **631,392** | [Other Income and Gains, Net](index=6&type=section&id=3.%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A%EF%BC%8C%E6%B7%A8%E9%A1%8D) For the six months ended June 30, 2025, other income and gains, net, amounted to HKD 16,823 thousand, a significant increase from the prior year, primarily due to a shift from exchange loss to gain Other Income and Gains, Net ('000 HKD) | Item | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Subsidy Income | 2,469 | 207 | | Gross Rental Income from Operating Leases of Investment Properties | 8,276 | 8,276 | | Bank Interest Income | 970 | 1,415 | | Exchange Differences, Net | 2,503 | (4,698) | | **Total** | **16,823** | **9,824** | [Other Expenses](index=7&type=section&id=4.%20%E5%85%B6%E4%BB%96%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, total other expenses amounted to HKD 486 thousand, primarily severance payments, representing a significant decrease from the prior year Other Expenses ('000 HKD) | Item | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Loss on Disposal/Write-off of Property, Plant and Equipment Items, Net | - | 16 | | Severance Payments | 486 | 1,479 | | **Total** | **486** | **1,495** | [Finance Costs](index=7&type=section&id=5.%20%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) For the six months ended June 30, 2025, total finance costs were HKD 7,538 thousand, mainly comprising interest on interest-bearing bank borrowings and lease liabilities, showing a decrease from the prior year Finance Costs ('000 HKD) | Item | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Interest on Interest-Bearing Bank Borrowings | 6,547 | 8,028 | | Interest on Lease Liabilities | 991 | 1,218 | | **Total** | **7,538** | **9,246** | [Loss Before Tax](index=7&type=section&id=6.%20%E9%99%A4%E7%A8%85%E5%89%8D%E虧%E6%90%8D) The Group's loss before tax has been reduced by various expenses, including cost of inventories sold, depreciation of fixed assets, depreciation of right-of-use assets, lease payments, advertising and counter decoration expenses, and impairment of right-of-use assets Loss Before Tax Deductions ('000 HKD) | Item | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Cost of Inventories Sold | 162,219 | 153,068 | | Depreciation of Fixed Assets | 18,889 | 26,398 | | Depreciation of Right-of-Use Assets | 14,682 | 18,027 | | Lease Payments Not Included in Lease Liabilities | 103,126 | 112,897 | | Advertising and Counter Decoration Expenses | 81,774 | 68,875 | | Impairment of Right-of-Use Assets | 2,162 | 8,737 | [Income Tax](index=8&type=section&id=7.%20%E6%89%80%E5%BE%97%E7%A8%85) For the six months ended June 30, 2025, the Group recorded an income tax expense of HKD 3,802 thousand, compared to an income tax credit of HKD 17,034 thousand in the prior year, primarily due to changes in deferred tax Income Tax ('000 HKD) | Item | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Current Tax – Mainland China | - | - | | Deferred Tax Expense/(Credit) | 3,802 | (17,034) | | **Total Tax Expense/(Credit) for the Period** | **3,802** | **(17,034)** | [Loss Per Share Attributable to Owners of the Company](index=8&type=section&id=8.%20%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%93%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%B5%E6%AF%8F%E8%82%A1%E虧%E6%90%8D) For the six months ended June 30, 2025, the basic loss per share attributable to owners of the company narrowed to 13.72 HK cents from 19.47 HK cents in the prior year, with share options having an anti-dilutive effect and thus not adjusting the total basic loss per share Loss Per Share Calculation ('000 HKD) | Item | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Loss for the Purpose of Calculating Basic Earnings Per Share | (57,959) | (82,235) | | Number of Ordinary Shares Outstanding During the Year | 422,416,638 | 422,416,638 | | Basic Loss Per Share (HK cents) | (13.72) | (19.47) | - Share options had an anti-dilutive effect, thus not adjusting the total basic loss per share[18](index=18&type=chunk) [Property, Plant and Equipment](index=8&type=section&id=9.%20%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99) As of June 30, 2025, the net book value of property, plant and equipment was HKD 615,902 thousand, with additions of HKD 3,497 thousand and depreciation provision of HKD 18,889 thousand during the period Property, Plant and Equipment Net Book Value Movement ('000 HKD) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Book Value at Beginning of Period/Year | 617,954 | 814,841 | | Additions | 3,497 | 8,325 | | Depreciation Provision for the Period/Year | (18,889) | (51,672) | | Exchange Adjustments | 23,447 | (24,678) | | **Book Value at End of Period/Year** | **615,902** | **617,954** | [Trade Receivables](index=9&type=section&id=10.%20%E6%87%89%E6%94%B6%E8%B2%BF%E6%98%93%E8%B3%AC%E6%AC%BE) As of June 30, 2025, the Group's total trade receivables amounted to HKD 65,651 thousand, with the majority due within 90 days, and an impairment provision of HKD 3,926 thousand Trade Receivables Ageing Analysis ('000 HKD) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 90 Days | 59,288 | 35,021 | | 91 to 180 Days | 2,176 | 2,733 | | 181 to 360 Days | 981 | 1,640 | | Over 360 Days | 3,206 | 3,471 | | **Total** | **65,651** | **42,865** | | Less: Impairment Provision | (3,926) | (4,850) | | **Net** | **61,725** | **38,015** | [Trade and Bills Payables](index=9&type=section&id=11.%20%E6%87%89%E4%BB%98%E8%B2%BF%E6%98%93%E8%B3%AC%E6%AC%BE%E5%8F%8A%E6%87%89%E4%BB%98%E7%A5%A8%E6%93%9A) As of June 30, 2025, the Group's total trade and bills payables amounted to HKD 37,025 thousand, with the highest proportion due within 90 days Trade and Bills Payables Ageing Analysis ('000 HKD) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 90 Days | 33,545 | 35,218 | | 91 to 180 Days | 1,098 | 1,736 | | 181 to 360 Days | 806 | 814 | | Over 360 Days | 1,576 | 1,252 | | **Total** | **37,025** | **39,020** | [Commitments](index=9&type=section&id=12.%20%E6%89%BF%E6%93%94) As of June 30, 2025, the Group's contracted commitments for the acquisition of property, plant and equipment amounted to HKD 106,450 thousand, an increase from the end of 2024 Commitments ('000 HKD) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Contracted Commitments for Acquisition of Property, Plant and Equipment | 106,450 | 102,346 | [Management Discussion and Analysis](index=10&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) [Business and Operations Review](index=10&type=section&id=%E6%A5%AD%E5%8B%99%E5%8F%8A%E7%87%9F%E9%81%8B%E5%9B%9E%E9%A1%A7) In H1 2025, facing a complex international environment and challenges in the Chinese economy, the Group responded to market changes and improved operational efficiency through a multi-brand strategy, strengthened e-commerce operations, optimized sales networks, increased product R&D, and green production [Macroeconomic Environment](index=10&type=section&id=%E5%AE%8F%E8%A7%80%E7%B6%93%E6%BF%9F%E7%92%B0%E5%A2%83) In H1 2025, global economic recovery was weak, and while China's GDP grew by 5.3% year-on-year, domestic demand remained soft, with an uneven recovery in the consumer market, and the intimate apparel retail environment remained challenging - In H1 2025, China's GDP grew by **5.3% year-on-year**, but domestic demand was weak, and consumer market recovery was uneven[22](index=22&type=chunk) - Total retail sales of consumer goods increased by **5.0% year-on-year**, with clothing, footwear, headwear, and knitwear categories growing by only **3.1%**, indicating a challenging retail operating environment for intimate apparel[22](index=22&type=chunk) [Brand Management](index=10&type=section&id=%E5%93%81%E7%89%8C%E7%AE%A1%E7%90%86) Leveraging a multi-brand strategy, the Group adjusted marketing for seven brands, consolidating its flagship brand Embry Form, and effectively enhanced brand exposure and e-commerce sales through celebrity endorsement and optimized social media operations, achieving a 7.6% year-on-year increase in e-commerce channel sales, while actively promoting green development initiatives - Implemented a multi-brand strategy, managing seven brands including Embry Form and Fandecie, to consolidate the flagship brand Embry Form[24](index=24&type=chunk) - Collaborated with celebrity endorser Song Yi, strengthened social media operations, and expanded diverse online content platforms, effectively enhancing brand exposure and traffic[24](index=24&type=chunk) - E-commerce channel sales increased by **7.6% year-on-year**, accounting for **39% of the Group's total revenue**, with content-driven e-commerce models (e.g., Douyin, WeChat Channels live streaming) contributing significantly[25](index=25&type=chunk) - Actively practiced green development concepts, launched environmental protection month activities and "Old Clothes for New" projects, reinforcing the image of "the preferred brand for green, healthy, high-quality intimate apparel"[25](index=25&type=chunk) [Sales Network](index=11&type=section&id=%E9%8A%B7%E5%94%AE%E7%B6%B2%E7%B5%B1) To counter weak physical retail consumption, the Group strategically closed offline stores, reducing net retail points by 50 to 761, while expanding online sales and synchronizing online and offline product information to optimize inventory allocation and management - Strategically closed offline stores, resulting in a net reduction of **50 retail points** to **761** (629 counters, 132 specialty stores)[26](index=26&type=chunk) - Intensified efforts to expand the online shopping market and implemented online mirror stores with synchronized product information with offline stores, optimizing inventory allocation and management[26](index=26&type=chunk) [Product Design and Research & Development](index=11&type=section&id=%E7%94%A2%E5%93%81%E8%A8%AD%E8%A8%88%E5%8F%8A%E7%A0%94%E7%99%BC) The Group continuously upgrades product design, uses green and environmentally friendly materials, and increases online product development to tap into the youth market, launching several new product series and securing 11 new patents in China, including three invention patents, bringing the total to 145 patents - Adhered to excellent product quality and comfortable wearing experience, using green, environmentally friendly, and pollution-free raw materials[27](index=27&type=chunk) - Increased online product development, optimizing product diversity, adaptability, and cost-effectiveness, launching several popular new product series[28](index=28&type=chunk) - During the period, **3 invention patents**, **6 utility model patents**, and **2 design patents** were granted in China, bringing the total to **145 patents** as of June 30, 2025[29](index=29&type=chunk) - Launched a new product series, "Fengchao Cup," using bio-based environmentally friendly materials and 3D large-hole honeycomb structure, embodying green and low-carbon principles[28](index=28&type=chunk) [Production Capacity](index=12&type=section&id=%E7%94%A2%E8%83%BD%E5%8A%9B) The Group operates production bases in Shandong and Jiangsu, equipped with intelligent finished goods and material warehouses, and adjusts supply flexibly through supply chain resources, with the Shandong Industrial Park utilizing geothermal heat pumps and other technologies for eco-friendly, low-carbon production, and independently developing automatic underwear packaging machines using biodegradable plastics - Established production bases in Shandong and Jiangsu, equipped with intelligent finished goods and material warehouses, flexibly adjusting supply[30](index=30&type=chunk) - The Shandong Industrial Park utilizes geothermal heat pumps and other technologies for eco-friendly, low-carbon production, and independently developed automatic underwear packaging machines using biodegradable plastics[30](index=30&type=chunk) [Human Resources](index=13&type=section&id=%E4%BA%BA%E5%8A%9B%E8%B3%87%E6%BA%90) The Group prioritizes employee training and welfare, reviews internal management culture to enhance belonging, and improves production technology with automated logistics systems to boost efficiency, with 3,865 employees and total staff costs of HKD 202,923 thousand as of June 30, 2025 - Prioritized employee training, welfare, and internal management culture to enhance employee belonging[31](index=31&type=chunk) - Improved production technology, coupled with automated logistics systems, to enhance production efficiency and alleviate cost pressures[31](index=31&type=chunk) Human Resources Data | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of Employees | 3,865 | 3,949 | | Total Staff Costs ('000 HKD) | 202,923 | 210,021 | [Financial Position Review](index=14&type=section&id=%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E5%9B%9E%E9%A1%A7) In H1 2025, the Group's revenue decreased by 4.3%, and gross profit margin fell to 73.2%, yet losses narrowed, driven by significant e-commerce sales growth, reduced operating expenses, and a substantial decrease in investment property impairment, maintaining robust liquidity despite an increased gearing ratio [Revenue](index=14&type=section&id=%E6%94%B6%E7%9B%8A) During the period, turnover was HKD 604,528 thousand, a 4.3% year-on-year decrease, with e-commerce platform sales growing 7.6% to HKD 236,828 thousand, accounting for 39.2% of total revenue, and flagship brand Embry Form contributing 64.7% of total revenue with a 1.5% increase, while women's intimate apparel remained the core product line, representing 83.7% of revenue Revenue Overview ('000 HKD) | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Turnover | 604,528 | 631,392 | -4.3% | | E-commerce Platform Sales | 236,828 | N/A | +7.6% | | Retail Turnover | 346,363 | N/A | -11.9% | | Mainland China Market Turnover | 582,494 | N/A | -3.2% (Fixed Exchange Rate) | - E-commerce sales increased from **34.9%** of total revenue in the prior year to **39.2%**[32](index=32&type=chunk) Revenue by Brand ('000 HKD) | Brand | H1 2025 | Proportion | Change | | :--- | :--- | :--- | :--- | | Embry Form | 391,105 | 64.7% | +1.5% | | Other Brands | 206,189 | 34.1% | N/A | Revenue by Product Line ('000 HKD) | Product Line | H1 2025 | Proportion | | :--- | :--- | :--- | | Intimate Apparel | 505,936 | 83.7% | | Sleepwear | 72,568 | 12.0% | | Swimwear | 9,020 | 1.5% | [Gross Profit](index=14&type=section&id=%E6%AF%9B%E5%88%A9) During the period, gross profit was approximately HKD 442,309 thousand, a 7.5% year-on-year decrease, with the overall gross profit margin falling by 2.6 percentage points to 73.2%, primarily due to increased promotional efforts and higher discount rates Gross Profit Overview ('000 HKD) | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Gross Profit | 442,309 | 478,324 | -7.5% | | Gross Profit Margin | 73.2% | 75.8% | -2.6 percentage points | - The decrease in gross profit margin was mainly due to the Group's increased promotional efforts and higher discount rates to drive sales volume and stabilize overall turnover[34](index=34&type=chunk) [Operating Expenses](index=15&type=section&id=%E7%B6%93%E7%87%9F%E9%96%8B%E6%94%AF) Selling and distribution expenses decreased by 3.3% year-on-year to HKD 408,005 thousand, primarily due to reduced rent and staff wages from fewer stores, while administrative expenses decreased by 6.1% year-on-year to HKD 75,265 thousand Operating Expenses ('000 HKD) | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 408,005 | 422,004 | -3.3% | | As % of Revenue | 67.5% | 66.8% | +0.7 percentage points | | Administrative Expenses | 75,265 | 80,196 | -6.1% | | As % of Revenue | 12.5% | 12.7% | -0.2 percentage points | - The decrease in selling and distribution expenses was mainly due to a reduction in the number of counters and specialty stores, leading to lower related rental expenses and sales staff wages[35](index=35&type=chunk) - The Group continued to invest resources in sales and marketing, including hiring endorsers and coordinating promotional activities, to enhance brand awareness and drive future sales[35](index=35&type=chunk) [Fair Value Changes of Investment Properties and Impairment of Other Assets](index=15&type=section&id=%E6%8A%95%E8%B3%87%E7%89%A9%E6%A5%AD%E5%85%AC%E5%B9%B3%E5%80%BC%E8%AE%8A%E5%8B%95%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E7%94%A2%E6%B8%9B%E5%80%BC) During the period, the fair value of investment properties decreased by approximately HKD 14,349 thousand, and other asset impairments amounted to approximately HKD 5,484 thousand, both significantly lower than the prior year, reflecting a subdued property market but alleviated impairment pressure Fair Value Changes of Investment Properties and Impairment of Other Assets ('000 HKD) | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Decrease in Fair Value of Investment Properties | 14,349 | 43,674 | -67.2% | | Impairment of Other Assets | 5,484 | 22,065 | -75.1% | - The reduction in impairment was mainly due to the continued subdued property market in Mainland China and Hong Kong, but the magnitude of impairment narrowed[36](index=36&type=chunk) [Impairment of Right-of-Use Assets and Other Expenses](index=15&type=section&id=%E4%BD%BF%E7%94%A8%E6%AC%8A%E8%B3%87%E7%94%A2%E6%B8%9B%E5%80%BC%E5%8F%8A%E5%85%B6%E4%BB%96%E9%96%8B%E6%94%AF) The Group made an impairment provision of approximately HKD 2,162 thousand for right-of-use assets related to specialty stores and counters, with other expenses totaling HKD 486 thousand, both significantly lower than the prior year Impairment of Right-of-Use Assets and Other Expenses ('000 HKD) | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Impairment Provision for Right-of-Use Assets | 2,162 | 8,737 | -75.2% | | Other Expenses | 486 | 1,495 | -67.5% | [Income Tax](index=15&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85) During the period, income tax expense was approximately HKD 3,802 thousand, compared to an income tax credit of HKD 17,034 thousand in the prior year Income Tax ('000 HKD) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Income Tax Expense/(Credit) | 3,802 | (17,034) | [Loss](index=15&type=section&id=%E虧%E6%90%8D) The loss attributable to owners of the company was HKD 57,959 thousand, a reduction from HKD 82,235 thousand in the prior year, primarily due to operating losses, fair value changes in investment properties, and impairment of other assets Loss Attributable to Owners of the Company ('000 HKD) | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Loss Attributable to Owners | 57,959 | 82,235 | -29.5% | - The narrowing of loss was mainly attributable to operating losses, fair value changes of investment properties, and impairment of other assets[39](index=39&type=chunk) [Liquidity and Financial Resources](index=15&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 maintained a robust financial position, with cash and cash equivalents increasing to HKD 212,742 thousand, while interest-bearing bank borrowings rose to HKD 402,561 thousand, leading to an increased gearing ratio of 23.3% Liquidity and Financial Resources ('000 HKD) | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 212,742 | 163,434 | +30.2% | | Interest-Bearing Bank Borrowings | 402,561 | 323,253 | +24.5% | | Equity Attributable to Owners of the Company | 1,727,410 | 1,722,552 | +0.3% | | Gearing Ratio | 23.3% | 18.8% | +4.5 percentage points | [Capital Expenditure](index=16&type=section&id=%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF) Capital expenditure for the period amounted to HKD 3,497 thousand, primarily for vehicles and computer software, with capital expenditure commitments totaling HKD 106,450 thousand as of June 30, 2025 Capital Expenditure and Commitments ('000 HKD) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Capital Expenditure | 3,497 | 5,615 | | Capital Expenditure Commitments (Period-end) | 106,450 | 102,346 (December 31, 2024) | - Capital expenditure was primarily for vehicles and computer software[41](index=41&type=chunk) [Pledges of the Group's Assets](index=16&type=section&id=%E6%9C%AC%E9%9B%86%E5%9C%98%E7%9A%84%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group pledged investment properties, buildings, and right-of-use assets in Hong Kong and Changzhou, as well as buildings in Shenzhen, to banks for financing loans, with a total net book value of approximately HKD 429,975 thousand - Investment properties, buildings, and right-of-use assets in Hong Kong and Changzhou (net book values of **HKD 227,874 thousand**, **HKD 186,546 thousand**, and **HKD 14,325 thousand** respectively) were pledged to banks[42](index=42&type=chunk) - Buildings in Shenzhen (net book value of **HKD 1,234 thousand**) were pledged to banks[42](index=42&type=chunk) [Capital Structure](index=16&type=section&id=%E8%B3%87%E6%9C%AC%E7%B5%90%E6%A7%8B) As of June 30, 2025, the company's total issued share capital was HKD 4,224 thousand, comprising 422,416,638 ordinary shares with a par value of HKD 0.01 each, consistent with the end of 2024 Capital Structure ('000 HKD) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Issued Share Capital | 4,224 | 4,224 | | Number of Ordinary Shares | 422,416,638 | 422,416,638 | [Material Investments, Acquisitions and Disposals of Subsidiaries and Associates](index=16&type=section&id=%E6%89%80%E6%8C%81%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E3%80%81%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E5%8F%8A%E9%97%9C%E8%81%AF%E5%85%AC%E5%8F%B8) During the period, the Group held no material investments and made no material acquisitions or disposals of subsidiaries and associates - No material investments, acquisitions, or disposals of subsidiaries and associates occurred during the period[44](index=44&type=chunk) [Foreign Exchange Risk](index=16&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) The Group primarily conducts trading transactions in Hong Kong Dollars and Renminbi and does not use derivative financial instruments to hedge against foreign exchange fluctuation risks - Primarily conducts trading transactions in Hong Kong Dollars and Renminbi[45](index=45&type=chunk) - Does not use derivative financial instruments to hedge against foreign exchange fluctuation risks[45](index=45&type=chunk) [Contingent Liabilities](index=16&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group provided bank guarantees of HKD 646 thousand for property leases and utility deposits, with no other significant contingent liabilities or litigation Contingent Liabilities ('000 HKD) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Bank Guarantees (Property Leases and Utility Deposits) | 646 | 646 | - Aside from bank guarantees, there are no other significant contingent liabilities or litigation[46](index=46&type=chunk) [Outlook](index=17&type=section&id=%E5%89%8D%E6%99%AF) Looking ahead to the second half, while global economic recovery remains weak and the Chinese economy faces internal and external pressures, it is expected to continue its recovery trajectory, with the intimate apparel industry facing intense competition and consumers seeking quality and value, prompting the Group to deepen online product development, enhance product adaptability, strengthen collaboration with low-carbon suppliers, and fully launch eco-friendly products, while optimizing business strategies to seize e-commerce growth opportunities, reinforce social media and e-commerce platform operations, consolidate online retail advantages, and continue celebrity endorsement strategies, alongside flexible capacity and supply chain resource allocation, utilizing intelligent warehousing and logistics to improve supply efficiency and delivery speed, and promoting energy conservation and emission reduction - Looking ahead to the second half, global economic recovery momentum is weak, and the Chinese economy faces internal and external pressures, but is expected to continue its recovery trend[47](index=47&type=chunk) - The intimate apparel industry faces fierce competition, with expected performance lagging the overall consumer market as consumers become more rational, seeking products that combine quality and value[47](index=47&type=chunk) - The Group will continue to deepen online product development, enhance product adaptability, strengthen cooperation with low-carbon suppliers, and fully launch eco-friendly products[47](index=47&type=chunk) - Future plans include optimizing business strategies, seizing e-commerce growth opportunities, strengthening social media and e-commerce platform operations, consolidating online retail advantages, and continuing celebrity endorsement strategies[48](index=48&type=chunk) - In terms of production, the Group will flexibly allocate production capacity and supply chain resources, utilize intelligent warehousing and logistics to improve supply efficiency and delivery speed, and promote energy conservation and emission reduction[48](index=48&type=chunk) [Other Information](index=18&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) [Review of Interim Financial Information](index=18&type=section&id=%E5%AF%A9%E9%96%B1%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99) The Audit Committee has reviewed the Group's adopted accounting principles, interim financial statements, risk management, internal controls, and financial reporting matters, and the external auditor has reviewed the condensed consolidated financial statements in accordance with Hong Kong Standard on Review Engagements 2410 - The Audit Committee has reviewed accounting principles, interim financial statements, risk management, internal controls, and financial reporting matters[49](index=49&type=chunk) - The external auditor has reviewed the condensed consolidated financial statements in accordance with Hong Kong Standard on Review Engagements 2410[49](index=49&type=chunk) [Interim Dividend](index=18&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board of Directors resolved on August 29, 2025, not to declare an interim dividend for the six months ended June 30, 2025, to conserve cash and maintain the Group's long-term financial strength - The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025[50](index=50&type=chunk) - No dividend is declared to conserve cash and maintain the Group's long-term financial strength[23](index=23&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=18&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%E7%9A%84%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, and as of June 30, 2025, the company held no treasury shares - No purchase, sale, or redemption of any of the company's listed securities occurred during the period[51](index=51&type=chunk) - As of June 30, 2025, the company held no treasury shares[52](index=52&type=chunk) [Compliance with Corporate Governance Code](index=18&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The Directors believe that the company has complied with all applicable code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules during the period - The company has complied with all applicable code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules[53](index=53&type=chunk) [Standard Code for Securities Transactions](index=18&type=section&id=%E9%80%B2%E8%A1%8C%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 a code of conduct for securities transactions by Directors and employees consistent with Appendix C3 of the Listing Rules, and all Directors and senior management have confirmed compliance with this code - The company has adopted a code of conduct for securities transactions by Directors and employees consistent with Appendix C3 of the Listing Rules[54](index=54&type=chunk) - All Directors and senior management have confirmed compliance with the code for securities transactions[54](index=54&type=chunk) [Publication of 2025 Interim Results Announcement and Interim Report](index=18&type=section&id=%E5%88%8A%E7%99%BC%E4%BA%8C%E9%9B%B6%E4%BA%8C%E4%BA%94%E5%B9%B4%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%91%8A%E5%8F%8A%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) This results announcement has been published on the websites of Hong Kong Exchanges and Clearing Limited and the company, and the 2025 interim report containing all information required by the Listing Rules will be published in due course - The results announcement has been published on the websites of Hong Kong Exchanges and the company[54](index=54&type=chunk) - The 2025 interim report will be published on the aforementioned websites in due course[54](index=54&type=chunk)

[Summary](index=1&type=section&id=%E6%91%98%E8%A6%81) The company's revenue and gross profit saw slight increases, while profit for the period and adjusted net profit experienced double-digit growth | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 362,551 | 355,716 | 1.9 | | Gross Profit | 236,762 | 235,921 | 0.4 | | Profit for the Period | 256,334 | 213,119 | 20.3 | | Adjusted Net Profit | 241,516 | 224,779 | 7.4 | [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%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) This statement details the group's financial performance, showing revenue, costs, and various profit metrics for the reporting periods | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 362,551 | 355,716 | | Cost of Sales | (125,789) | (119,795) | | Gross Profit | 236,762 | 235,921 | | Other Income | 48,267 | 24,057 | | Selling and Distribution Costs | (709) | (1,078) | | Administrative Expenses | (16,608) | (36,661) | | Operating Profit | 267,712 | 222,239 | | Finance Costs | (6,407) | (6,375) | | Profit Before Tax | 261,305 | 215,864 | | Income Tax | (4,971) | (2,745) | | Profit for the Period | 256,334 | 213,119 | | Total Comprehensive Income for the Period | 247,628 | 217,658 | | Basic and Diluted Earnings Per Share (RMB cents) | 15.9 | 13.2 | [Consolidated Statement of Financial Position](index=3&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) This statement presents the group's assets, liabilities, and equity as of the reporting dates, highlighting changes in financial position | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Non-current Assets | 3,855,379 | 3,928,626 | | Current Assets | 865,423 | 920,120 | | Current Liabilities | 213,327 | 576,581 | | Net Current Assets | 652,096 | 343,539 | | Total Assets Less Current Liabilities | 4,507,475 | 4,272,165 | | Non-current Liabilities | 537,800 | 551,829 | | Net Assets | 3,969,675 | 3,720,336 | | Share Capital | 12,952 | 12,952 | | Reserves | 3,956,723 | 3,707,384 | | Total Equity | 3,969,675 | 3,720,336 | [Notes to the Unaudited Interim Financial Report](index=4&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E9%99%84%E8%A8%BB) This section provides supplementary information on the interim financial report's basis of preparation, accounting policy changes, revenue, expenses, and balance sheet items [1 Basis of Preparation](index=4&type=section&id=1%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The interim financial report is prepared in accordance with HKEX Listing Rules and IAS 34, and has been reviewed by KPMG - The report is prepared in accordance with **International Accounting Standard 34**, and has been reviewed by **KPMG**[8](index=8&type=chunk)[9](index=9&type=chunk) [2 Changes in Accounting Policies](index=4&type=section&id=2%20%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E8%AE%8A%E5%8B%95) The group adopted amendments to IAS 21, "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability," with no material impact on this interim report - The group applied the amendments to **International Accounting Standard 21**, but they had no material impact on the interim financial report[10](index=10&type=chunk) [3 Revenue and Segment Reporting](index=4&type=section&id=3%20%E6%94%B6%E5%85%A5%E5%8F%8A%E5%88%86%E9%83%A8%E5%A0%B1%E5%91%8A) Group revenue, primarily from tuition and boarding fees, totaled RMB 362.55 million, entirely from China, with education services as the sole operating segment Revenue Sources | Revenue Source | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Tuition Fees | 335,862 | 328,607 | | Boarding Fees | 26,689 | 27,109 | | **Total** | **362,551** | **355,716** | - All group revenue and non-current assets are located in China, with education services as the sole operating segment[13](index=13&type=chunk)[14](index=14&type=chunk) [4 Other Income](index=5&type=section&id=4%20%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A) Other income significantly increased by 100.4% to RMB 48.267 million, driven by higher rental, property management, service, and financial asset interest income, along with operating surpluses from Anhui and Jiangsu schools Other Income Items | Other Income Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Rental and Property Management Income | 14,951 | 12,345 | | Service Income | 11,941 | 7,270 | | Government Grants | 395 | 550 | | Interest Income from Financial Assets Measured at Amortized Cost | 10,835 | 7,067 | | Operating Surplus/(Deficit) from Anhui and Jiangsu Schools | 10,167 | (3,123) | | Others | (22) | (52) | | **Total** | **48,267** | **24,057** | [5 Profit Before Tax](index=6&type=section&id=5%20%E9%99%A4%E7%A8%85%E5%89%8D%E6%BA%A2%E5%88%A9) Profit before tax is primarily influenced by finance costs, staff costs, and other items such as depreciation, amortization, and net exchange gains or losses - Profit before tax is net of finance costs, staff costs, and other operating expenses[16](index=16&type=chunk)[18](index=18&type=chunk) [5(a) Finance Costs](index=6&type=section&id=5(a)%20%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) Finance costs, mainly interest expenses on loans and borrowings, amounted to RMB 6.407 million, remaining largely consistent with the prior period Finance Cost Items | Finance Cost Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest Expense on Loans and Borrowings | 6,407 | 6,375 | [5(b) Staff Costs](index=6&type=section&id=5(b)%20%E5%93%A1%E5%B7%A5%E6%88%90%E6%9C%AC) Total staff costs increased by 5.3% to RMB 93.175 million, comprising salaries, wages, other benefits, defined contribution retirement plan contributions, and equity-settled share-based payment expenses Staff Cost Items | Staff Cost Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Salaries, Wages and Other Benefits | 84,620 | 78,645 | | Defined Contribution Retirement Plan Contributions | 6,844 | 5,714 | | Equity-settled Share-based Payment Expenses | 1,711 | 4,102 | | **Total** | **93,175** | **88,461** | [5(c) Other Items](index=6&type=section&id=5(c)%20%E5%85%B6%E4%BB%96%E9%A0%85%E7%9B%AE) Other items decreased significantly by 51.8% to RMB 16.965 million, primarily due to a net exchange gain reversing a prior-period loss, offsetting increased depreciation and amortization Other Items | Other Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Depreciation of Property, Plant and Equipment | 30,057 | 24,281 | | Amortization of Intangible Assets | 1,159 | 1,127 | | Depreciation of Right-of-use Assets | 1,278 | 1,278 | | Net Exchange (Gain)/Loss | (16,529) | 7,558 | | Auditor's Remuneration | 1,000 | 1,000 | | **Total** | **16,965** | **35,244** | [6 Income Tax](index=7&type=section&id=6%20%E6%89%80%E5%BE%97%E7%A8%85) Income tax expense increased by 85.2% to RMB 4.971 million, mainly due to higher taxable profit in China, with potential future tax implications for academic education services Income Tax Items | Income Tax Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Provision for China Income Tax for the Period | 4,971 | 2,745 | - The group's schools currently do not pay income tax on academic education service revenue, but this may change due to future policy updates[19](index=19&type=chunk)[21](index=21&type=chunk) [7 Earnings Per Share](index=7&type=section&id=7%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) Basic and diluted earnings per share for the six months ended June 30, 2025, were RMB 15.9 cents, up from RMB 13.2 cents, driven by increased profit for the period Earnings Per Share (RMB cents) | Earnings Per Share (RMB cents) | 2025 | 2024 | | :--- | :--- | :--- | | Basic and Diluted | 15.9 | 13.2 | - Diluted earnings per share are the same as basic earnings per share due to the anti-dilutive effect of share options during the reporting period[20](index=20&type=chunk) [8 Other Non-current Assets](index=8&type=section&id=8%20%E5%85%B6%E4%BB%96%E9%9D%9E%E6%B5%81%E5%8B%95%E8%B3%87%E7%94%A2) Other non-current assets, totaling RMB 2.929 billion, primarily consist of investment prepayments and advances to Anhui and Jiangsu schools, showing a slight increase Other Non-current Asset Items | Other Non-current Asset Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Investment Prepayments | 660,000 | 660,000 | | Advances to Anhui and Jiangsu Schools | 2,269,737 | 2,230,700 | | **Total** | **2,929,737** | **2,890,700** | - Investment prepayments represent the first installment for the acquisition of Jiangsu School, and advances are for campus construction, both unsecured and interest-free[22](index=22&type=chunk) [9 Trade Receivables](index=8&type=section&id=9%20%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) Trade receivables decreased to RMB 1.150 million from RMB 2.137 million at the end of 2024, with no provision for doubtful debts Trade Receivables | Trade Receivables | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within One Year | 1,150 | 2,137 | [10 Prepayments, Deposits and Other Receivables](index=8&type=section&id=10%20%E9%A0%90%E4%BB%98%E6%AC%BE%E9%A0%85%E3%80%81%E6%8C%89%E9%87%91%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) Prepayments, deposits, and other receivables increased to RMB 247.941 million from RMB 228.101 million, mainly due to an increase in the balance due from Jiangsu School Prepayments, Deposits and Other Receivables | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Prepayments and Deposits | 202,530 | 201,838 | | Other Receivables | 45,411 | 26,263 | | **Total** | **247,941** | **228,101** | - Prepayments and deposits primarily include a balance of **RMB 200 million** due from Jiangsu School[23](index=23&type=chunk) [11 Long-term Bank Deposits, Cash and Bank Balances](index=9&type=section&id=11%20%E9%95%B7%E6%9C%9F%E9%8A%80%E8%A1%8C%E5%AE%9A%E6%9C%9F%E5%AD%98%E6%AC%BE%E3%80%81%E7%8F%BE%E9%87%91%E5%8F%8A%E9%8A%80%E8%A1%8C%E7%B5%90%E9%A4%98) Long-term bank deposits, cash, and bank balances decreased to RMB 856.332 million from RMB 1.019 billion, with bank deposit interest rates ranging from 1.85% to 3.31% Long-term Bank Deposits, Cash and Bank Balances | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Long-term Bank Deposits | 240,000 | 330,000 | | Bank Deposits | 476,100 | 548,100 | | Cash and Cash Equivalents | 140,232 | 141,782 | | **Total** | **856,332** | **1,019,882** | - Bank deposit annual interest rates range from **1.85% to 3.31%** (December 31, 2024: 1.45% to 3.55%)[24](index=24&type=chunk) [12 Loans and Borrowings](index=9&type=section&id=12%20%E8%B2%B8%E6%AC%BE%E5%8F%8A%E5%80%9F%E6%AC%BE) Total loans and borrowings slightly decreased to RMB 589.410 million from RMB 601.849 million, comprising unsecured bank loans and loans from related parties Loans and Borrowings | Loan Type | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Unsecured Bank Loans (within one year or on demand) | 51,610 | 50,020 | | Unsecured Bank Loans (after one year but within two years) | 56,290 | 62,880 | | Related Party Loans (after one year but within two years) | 216,132 | – | | Related Party Loans (after two years but within five years) | 169,623 | 293,555 | | Related Party Loans (after five years) | 95,755 | 195,394 | | **Total** | **589,410** | **601,849** | - Unsecured bank loans bear interest at an annual rate of **2.70%**, while related party loans bear interest at an annual rate of **2.00%**[25](index=25&type=chunk)[26](index=26&type=chunk) [13 Contract Liabilities](index=10&type=section&id=13%20%E5%90%88%E7%B4%84%E8%B2%A0%E5%80%B5) Contract liabilities significantly decreased to RMB 10.987 million, primarily due to the recognition of tuition and boarding fees as revenue Contract Liabilities | Contract Liability Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Tuition Fees | 2,061 | 327,088 | | Boarding Fees | 8,926 | 34,957 | | **Total** | **10,987** | **362,045** | [14 Other Payables](index=10&type=section&id=14%20%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) Other payables decreased to RMB 141.744 million from RMB 152.114 million, including amounts due to suppliers, accrued staff costs, and accrued interest Other Payables | Other Payable Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Amounts Due to Suppliers | 67,664 | 62,055 | | Miscellaneous Expenses Collected from Students | 6,635 | 6,643 | | Accrued Staff Costs | 19,802 | 25,381 | | Accrued Expenses | 4,986 | 4,274 | | Accrued Interest | 28,008 | 23,535 | | Others | 14,649 | 30,226 | | **Total** | **141,744** | **152,114** | - All other payables are expected to be settled within one year[28](index=28&type=chunk) [15 Share Capital, Reserves and Dividends](index=10&type=section&id=15%20%E8%82%A1%E6%9C%AC%E3%80%81%E5%84%B2%E5%82%99%E5%8F%8A%E8%82%A1%E6%81%AF) This section covers interim dividend policy, prior-year approved dividends, changes in share option schemes, and the group's capital management strategy aimed at ensuring going concern and shareholder returns - The Board does not recommend the payment of an interim dividend for the reporting period[29](index=29&type=chunk) [15(a) Dividends Payable to Equity Shareholders of the Company Attributable to the Interim Period](index=10&type=section&id=15(a)%20%E4%B8%AD%E6%9C%9F%E6%9C%9F%E9%96%93%E6%87%89%E4%BB%98%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%AC%8A%E7%9B%8A%E8%82%A1%E6%9D%B1%E7%9A%84%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 paying an interim dividend for the reporting period[29](index=29&type=chunk) [15(b) Dividends Approved in Respect of the Previous Financial Year Attributable to Equity Shareholders of the Company in the Interim Period](index=10&type=section&id=15(b)%20%E4%B8%AD%E6%9C%9F%E6%9C%9F%E9%96%93%E5%B7%B2%E6%89%B9%E5%87%86%E4%B8%8A%E5%80%8B%E8%B2%A1%E6%94%BF%E5%B9%B4%E5%BA%A6%E6%87%89%E4%BB%98%E6%AC%8A%E7%9B%8A%E8%82%A1%E6%9D%B1%E7%9A%84%E8%82%A1%E6%81%AF) No final dividend for the previous financial year was approved for the six months ended June 30, 2025, compared to HKD 6.32 cents per share in the prior period Dividend (Per Ordinary Share) | Dividend (Per Ordinary Share) | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Final Dividend for Previous Financial Year (HK cents) | 0 | 6.32 | | Corresponding Amount | – | 92,609 | [15(c) Equity-settled Share-based Transactions](index=11&type=section&id=15(c)%20%E8%82%A1%E6%AC%8A%E7%B5%90%E7%AE%97%E4%BB%A5%E8%82%A1%E4%BB%BD%E7%82%BA%E5%9F%BA%E7%A4%8E%E7%9A%84%E4%BA%A4%E6%98%93) No share options were exercised during the period, while 21.6 million options vested and 3 million expired, leaving 134.8 million outstanding as of June 30, 2025 - No share options were exercised during the reporting period, while **21.6 million** share options vested and **3 million** expired[32](index=32&type=chunk) - As of June 30, 2025, the company had **134.8 million** outstanding share options[32](index=32&type=chunk) [15(d) Capital Management](index=11&type=section&id=15(d)%20%E8%B3%87%E6%9C%AC%E7%AE%A1%E7%90%86) The group manages its capital structure using the gearing ratio to ensure its ability to continue as a going concern and maximize shareholder returns - The group monitors its capital structure using the **gearing ratio**, aiming to ensure its ability to continue as a going concern and generate returns for shareholders[33](index=33&type=chunk) [Business Overview](index=12&type=section&id=%E6%A5%AD%E5%8B%99%E6%A6%82%E8%A6%BD) China Xinhua Education Group Limited is a leading private higher education institution in the Yangtze River Delta, providing quality applied academic and vocational education services - China Xinhua Education Group Limited is a leading private higher education institution in the Yangtze River Delta region, committed to providing high-quality applied academic and secondary vocational education services[35](index=35&type=chunk)[36](index=36&type=chunk) - The group actively responds to the national strategy of building a strong education nation, continuously improving educational quality, with graduate employment rates generally higher than the provincial average[35](index=35&type=chunk)[36](index=36&type=chunk) [Business Review and Operational Update](index=13&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7%E5%8F%8A%E9%81%8B%E7%87%9F%E6%9B%B4%E6%96%B0) During the reporting period, the group maintained stable student enrollment, increased continuing education students, and made significant progress in professional development, talent acquisition, collaborations, and campus investments [Student Enrollment](index=13&type=section&id=%E5%9C%A8%E6%A0%A1%E7%94%9F%E4%BA%BA%E6%95%B8) For the 2024/25 academic year, full-time student enrollment was approximately 43,014, a 1.48% decrease, while continuing education enrollment reached 20,149, an increase of 1.88% Student Enrollment | Student Type | 2024/25 Academic Year (Number of Students) | Year-on-Year Change (%) | | :--- | :--- | :--- | | Full-time Students | 43,014 | -1.48 | | Continuing Education Students | 20,149 | 1.88 | [Operational Updates and Highlights](index=13&type=section&id=%E7%B6%93%E7%87%9F%E6%9B%B4%E6%96%B0%E5%8F%8A%E4%BA%AE%E9%BB%9E) The group achieved notable progress in professional construction, talent development, exchange and cooperation, and campus infrastructure, enhancing its educational and social service capabilities - The group boasts **4 national-level first-class undergraduate programs** and **14 provincial-level first-class undergraduate programs**, with student awards in provincial-level and above academic competitions increasing by **206.7%**[38](index=38&type=chunk) - Implementing a "talent-driven education" strategy, the group has cultivated and introduced over **340 doctoral teachers**, and Xinhua College was approved as an Anhui Province postdoctoral research workstation[38](index=38&type=chunk) - Actively promoting industry-university and local government cooperation, the group established a School of Music, co-built a Smart Modern Industry College, and expanded international exchanges, launching undergraduate preparatory program enrollment with the University of Malaya[38](index=38&type=chunk) - Continuous investment in education has improved campus infrastructure, with new laboratories, upgraded smart classrooms, and the development of AI intelligent agents for smart student affairs and digital counselors[40](index=40&type=chunk) - The group actively contributes to social services by adding an off-campus teaching site for Northwestern Polytechnical University's continuing higher education and introducing a new drone application technology program[40](index=40&type=chunk) [Future Outlook](index=14&type=section&id=%E6%9C%AA%E4%BE%86%E5%B1%95%E6%9C%9B) The group will align with the national "Education Powerhouse" strategy, reform talent cultivation, strengthen disciplines, optimize campus environments, build a smart education ecosystem, and deepen cooperation to enhance brand influence - The group will implement the "Outline for Building a Strong Education Nation" to cultivate high-quality applied talents[39](index=39&type=chunk) - It will continuously strengthen dynamic adjustment of disciplines, cultivate more national-level first-class courses and programs, and enhance students' comprehensive quality and employment competitiveness[41](index=41&type=chunk) - The "talent-driven education" strategy will continue to be implemented to cultivate a professional and high-quality teaching team[42](index=42&type=chunk) - Focusing on smart campus construction, the group will strengthen data platforms and large education models to promote the digital and intelligent transformation of education[43](index=43&type=chunk) - Deepening industry-university and local government cooperation, expanding industry-academia-research collaboration, and increasing international student enrollment under the "Belt and Road" initiative will enhance its international brand[44](index=44&type=chunk) [1. Implement Policy Directives to Support the Construction of a Strong Education Nation](index=14&type=section&id=%E4%B8%80%E3%80%81%E8%B2%A3%E5%BE%B9%E6%94%BF%E7%AD%96%E7%B2%BE%E7%A5%9E%EF%BC%8C%E5%8A%A9%E5%8A%9B%E6%95%99%E8%82%B2%E5%BC%B7%E5%9C%8B%E5%BB%BA%E8%A8%AD) The group will actively respond to the "Outline for Building a Strong Education Nation," focusing on moral education to cultivate high-quality applied talents with strong practical skills, international perspectives, and innovative spirit - The group will implement the "Outline for Building a Strong Education Nation" to cultivate socialist builders and successors who are well-rounded in moral, intellectual, physical, aesthetic, and labor education[39](index=39&type=chunk) [2. Focus on Talent Cultivation, Provide Quality Resources and Services](index=15&type=section&id=%E4%BA%8C%E3%80%81%E5%9C%8D%E7%B9%9E%E4%BA%BA%E6%89%8D%E5%9F%B9%E9%A4%8A%EF%BC%8C%E6%8F%90%E4%BE%9B%E5%84%AA%E8%B3%AA%E8%B3%87%E6%BA%90%E5%92%8C%E6%9C%8D%E5%8B%99) The group will align with industry transformation needs, continuously adjust disciplines, cultivate first-class courses and programs, deepen applied talent cultivation reforms, and optimize campus facilities - Continuously strengthen dynamic adjustment of disciplines, cultivating more national-level first-class courses and first-class programs[41](index=41&type=chunk) - Deepen reform and innovation in applied talent cultivation models, enhancing students' comprehensive quality and employment competitiveness[41](index=41&type=chunk) [3. Focus on Capability Building, Effectively Leverage the Role of Talent-Driven Education](index=15&type=section&id=%E4%B8%89%E3%80%81%E8%81%9A%E7%84%A6%E8%83%BD%E5%8A%9B%E5%9F%B9%E9%A4%8A%EF%BC%8C%E6%9C%89%E6%95%88%E7%99%BC%E6%8F%B2%E4%BA%BA%E6%89%8D%E5%BC%B7%E6%A0%A1%E4%BD%9C%E7%94%A8) The group will continue to implement its "Talent-Driven Education" strategy, prioritizing talent development through tiered training to build a professional and high-quality teaching team - Continuously implement the "talent-driven education" development strategy, focusing on cultivating teachers' comprehensive abilities in teaching, research, and practice[42](index=42&type=chunk) [4. Promote Technology Application, Build a New Smart Education Ecosystem](index=15&type=section&id=4.%20%E6%8E%A8%E9%80%B2%E6%8A%80%E8%A1%93%E6%87%89%E7%94%A8%EF%BC%8C%E6%A7%8B%E5%BB%BA%E6%99%BA%E6%85%A7%E6%95%99%E8%82%B2%E6%96%B0%E7%94%9F%E6%85%8B) The group will focus on smart campus construction, strengthen data platforms and large education models, promote digital and intelligent transformation of curriculum and teaching, and expand AI applications in education - Strengthen data platform and large education model construction, promoting the digital and intelligent upgrade of curriculum, textbooks, and teaching systems[43](index=43&type=chunk) - Increase the application of artificial intelligence in professional construction, teaching reform, and quality assessment to enhance talent cultivation efficiency through digital intelligence in education[43](index=43&type=chunk) [5. Strengthen Cooperative Education, Enhance Brand Influence](index=15&type=section&id=5.%20%E5%8A%A0%E5%BC%B7%E5%90%88%E4%BD%9C%E8%BE%A6%E5%AD%B8%EF%BC%8C%E6%8F%90%E5%8D%87%E5%93%81%E7%89%8C%E5%BD%B1%E9%9F%BF%E5%8A%9B) The group will deepen industry-university and local government collaborations, achieve breakthroughs in industry-academia-research, strengthen core technology research, and expand international student enrollment under the "Belt and Road" initiative - Deepen industry-university and local government cooperation models, achieving new breakthroughs in industry-academia-research collaboration, such as the construction of modern industry colleges and future technology institutes[44](index=44&type=chunk) - Expand international student enrollment under the "Belt and Road" initiative, actively apply for Sino-foreign cooperative education programs, and continuously build an international brand[44](index=44&type=chunk) [Financial Review](index=16&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) During the period, revenue slightly increased, other income significantly rose, and both cost of sales and gross profit grew, while selling and distribution and administrative expenses decreased, leading to double-digit growth in profit for the period and adjusted net profit - Revenue slightly increased by **1.9%**, other income significantly grew by **100.4%**, and profit for the period increased by **20.3%**[45](index=45&type=chunk)[46](index=46&type=chunk)[55](index=55&type=chunk) - Selling and distribution costs decreased by **36.4%**, and administrative expenses decreased by **54.8%**, primarily due to reduced student recruitment expenses, depreciation, amortization, and exchange losses[49](index=49&type=chunk)[50](index=50&type=chunk) [Revenue](index=16&type=section&id=%E6%94%B6%E5%85%A5) Group revenue slightly increased by 1.9% to RMB 362.6 million, primarily driven by an increase in average tuition fees Revenue | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 362,600 | 355,700 | 1.9 | - Revenue growth was primarily due to an increase in average tuition fees[45](index=45&type=chunk) [Other Income](index=16&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A) Other income significantly increased by 100.4% to RMB 48.3 million, primarily due to improved operations Other Income | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Other Income | 48,300 | 24,100 | 100.4 | - The significant increase in other income was primarily due to improved operations[46](index=46&type=chunk) [Cost of Sales](index=16&type=section&id=%E4%B8%BB%E7%87%9F%E6%A5%AD%E5%8B%99%E6%88%90%E6%9C%AC) Cost of sales increased by 5.0% to RMB 125.8 million, mainly due to continuous increases in teaching investment Cost of Sales | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Cost of Sales | 125,800 | 119,800 | 5.0 | - The increase in cost of sales was mainly due to continuous increases in teaching investment[47](index=47&type=chunk) [Gross Profit](index=16&type=section&id=%E6%AF%9B%E5%88%A9) Gross profit slightly increased by 0.4% to RMB 236.8 million, primarily benefiting from improved management and economies of scale from resource integration Gross Profit | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 236,800 | 235,900 | 0.4 | - Gross profit growth primarily benefited from improved management and economies of scale resulting from resource integration[48](index=48&type=chunk) [Selling and Distribution Costs](index=16&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E5%88%86%E9%8A%B7%E6%88%90%E6%9C%AC) Selling and distribution costs decreased by 36.4% to RMB 0.7 million, mainly due to reduced student recruitment expenses, depreciation, and amortization Selling and Distribution Costs | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Selling and Distribution Costs | 700 | 1,100 | -36.4 | - The decrease in selling and distribution costs was mainly due to reduced student recruitment expenses, depreciation, and amortization[49](index=49&type=chunk) [Administrative Expenses](index=16&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) Administrative expenses decreased by 54.8% to RMB 16.6 million, primarily due to a reduction in exchange losses Administrative Expenses | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 16,600 | 36,700 | -54.8 | - The decrease in administrative expenses was primarily due to a reduction in exchange losses[50](index=50&type=chunk) [Finance Costs](index=17&type=section&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) Finance costs for the period were RMB 6.4 million, showing no significant difference compared to the same period last year Finance Costs | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Finance Costs | 6,400 | 6,400 | 0.0 | [Profit Before Tax](index=17&type=section&id=%E9%99%A4%E7%A8%85%E5%89%8D%E6%BA%A2%E5%88%A9) Profit before income tax increased by 21.0% to RMB 261.3 million, primarily due to higher taxable profit in China Profit Before Tax | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Profit Before Tax | 261,300 | 215,900 | 21.0 | - The increase in profit before tax was primarily due to higher taxable profit in China[53](index=53&type=chunk) [Income Tax](index=17&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85) Income tax increased by 85.2% to RMB 5.0 million, primarily due to higher taxable income in China Income Tax | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Income Tax | 5,000 | 2,700 | 85.2 | - The increase in income tax was primarily due to higher taxable income in China[54](index=54&type=chunk) [Profit for the Period](index=17&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%85%A7%E6%BA%A2%E5%88%A9) Profit for the period increased by 20.3% to RMB 256.3 million, resulting from the combined impact of various financial factors Profit for the Period | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Profit for the Period | 256,300 | 213,100 | 20.3 | [Adjusted Net Profit](index=17&type=section&id=%E7%B6%93%E8%AA%BF%E6%95%B4%E6%B7%A8%E6%BA%A2%E5%88%A9) Adjusted net profit increased by 7.4% to RMB 241.5 million, a key supplementary measure of operating performance that excludes exchange gains/losses and share-based payment expenses Adjusted Net Profit | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Profit for the Period | 256,334 | 213,119 | 20.3 | | Add: Net Exchange (Gain)/Loss | (16,529) | 7,558 | - | | Add: Share-based Payment Expenses | 1,711 | 4,102 | - | | **Adjusted Net Profit** | **241,516** | **224,779** | **7.4** | - Adjusted net profit, which excludes exchange gains/losses and share-based payment expenses, is a key supplementary measure of the group's operating performance[56](index=56&type=chunk) [Working Capital and Capital Resources](index=18&type=section&id=%E7%87%9F%E9%81%8B%E8%B3%87%E9%87%91%E5%8F%8A%E8%B3%87%E6%9C%AC%E4%BE%86%E6%BA%90) The group primarily funds its operations through cash and cash equivalents generated from operating activities, with total long-term bank deposits, cash, and bank balances of RMB 856.3 million as of June 30, 2025 - The group primarily funds its operations through cash and cash equivalents generated from operating activities[58](index=58&type=chunk) Long-term Bank Deposits, Cash and Bank Balances | Indicator | June 30, 2025 (RMB thousands) | | :--- | :--- | | Long-term Bank Deposits, Cash and Bank Balances | 856,300 | [Net Current Assets](index=18&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E7%94%A2%E6%B7%A8%E9%A1%8D) Net current assets increased by 89.8% to RMB 652.1 million, primarily due to changes in contract liabilities, other payables, and accrued expenses exceeding the decrease in current assets Net Current Assets | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Net Current Assets | 652,100 | 343,500 | 89.8 | - The increase in net current assets was primarily due to changes in contract liabilities, other payables, and accrued expenses exceeding the decrease in current assets[59](index=59&type=chunk) [Capital Expenditure](index=18&type=section&id=%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF) Capital expenditure for the period significantly decreased to RMB 49.2 million, primarily for building construction, school facilities, and equipment, funded mainly by operating cash flow Capital Expenditure | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Capital Expenditure | 49,200 | 101,700 | - Capital expenditure was primarily used for the construction of buildings and school facilities, as well as the purchase of equipment and software, mainly funded by cash generated from operating activities[60](index=60&type=chunk) [Bank Loans and Other Borrowings](index=18&type=section&id=%E9%8A%80%E8%A1%8C%E8%B2%B8%E6%AC%BE%E5%8F%8A%E5%85%B6%E4%BB%96%E5%80%9F%E6%AC%BE) As of June 30, 2025, the group's total bank loans and borrowings from related parties amounted to RMB 589.4 million Bank Loans and Other Borrowings | Indicator | June 30, 2025 (RMB thousands) | | :--- | :--- | | Bank Loans and Borrowings from Related Parties | 589,400 | [Contingent Liabilities, Guarantees and Litigation](index=18&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%80%B5%E3%80%81%E6%擔%E4%BF%9D%E5%8F%8A%E8%A8%B4%E8%A8%9F) As of June 30, 2025, the group had no unrecorded material contingent liabilities, guarantees, or litigation against it - As of the end of the reporting period, the group had no unrecorded material contingent liabilities, guarantees, or litigation[62](index=62&type=chunk) [Gearing Ratio](index=18&type=section&id=%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87) The group's gearing ratio decreased from 23.3% to 15.9%, primarily due to a greater reduction in total liabilities than in total assets Gearing Ratio | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Liabilities (RMB thousands) | 751,127 | 1,128,410 | | Total Assets (RMB thousands) | 4,720,802 | 4,848,746 | | Gearing Ratio (%) | 15.9 | 23.3 | - The decrease in the gearing ratio was primarily due to a greater reduction in total liabilities than in total assets[63](index=63&type=chunk) [Future Plans for Material Investments and Capital Assets](index=18&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E7%9A%84%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) As of June 30, 2025, and up to the date of this announcement, the group had no other material investment and capital asset plans - As of the end of the reporting period, the group had no other material investment and capital asset plans[64](index=64&type=chunk) [Material Acquisitions and Disposals of Subsidiaries and Associates](index=19&type=section&id=%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E5%8F%8A%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E7%9A%84%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE) Except as disclosed in this announcement, there were no material acquisitions or disposals of subsidiaries and associates during the reporting period - During the reporting period, the company had no material acquisitions or disposals of subsidiaries and associates[65](index=65&type=chunk) [Material Investments Held by the Group](index=19&type=section&id=%E6%9C%AC%E9%9B%86%E5%9C%98%E6%8C%81%E6%9C%89%E7%9A%84%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) Except as disclosed in this announcement, the group held no other material investments during the reporting period - During the reporting period, the group held no other material investments[66](index=66&type=chunk) [Foreign Exchange Risk Management](index=19&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86) The group's functional currency is RMB, with most income and expenses denominated in RMB, and management continuously monitors foreign exchange risk - The group's functional currency is RMB, with most income and expenses denominated in RMB, and management continuously monitors foreign exchange risk[67](index=67&type=chunk) [Pledge of Assets](index=19&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the group had not pledged any assets - As of the end of the reporting period, the group had not pledged any assets[68](index=68&type=chunk) [Human Resources](index=19&type=section&id=%E4%BA%BA%E5%8A%9B%E8%B3%87%E6%BA%90) As of June 30, 2025, the group had approximately 3,035 employees, a 21.3% increase, all located in China and participating in local government social security plans Number of Employees | Indicator | June 30, 2025 (Number of Persons) | June 30, 2024 (Number of Persons) | Change (%) | | :--- | :--- | :--- | :--- | | Number of Employees | 3,035 | 2,501 | 21.3 | - The group maintains good working relationships with its employees, with no significant labor disputes during the reporting period[69](index=69&type=chunk) [Off-balance Sheet Commitments and Arrangements](index=19&type=section&id=%E8%B3%87%E7%94%A2%E8%B2%A0%E5%80%B5%E8%A1%A8%E5%A4%96%E6%89%BF%E6%93%94%E5%8F%8A%E5%AE%89%E6%8E%92) As of June 30, 2025, the group had not entered into any off-balance sheet transactions - As of the end of the reporting period, the group had not entered into any off-balance sheet transactions[70](index=70&type=chunk) [Events After the Reporting Period](index=19&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) No events occurred after June 30, 2025, up to the date of this announcement, that would have a material impact on the group - No events occurred after the reporting period that would have a material impact on the group[71](index=71&type=chunk) [Interim Dividend](index=19&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 reporting period - The Board does not recommend paying an interim dividend for the reporting period[72](index=72&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=19&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 reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities, and there were no treasury shares - During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities[73](index=73&type=chunk) - As of June 30, 2025, the company held no treasury shares[74](index=74&type=chunk) [Corporate Governance and Publication](index=20&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%88%8A%E7%99%BC) The group is committed to maintaining high standards of corporate governance, adhering to the Corporate Governance Code and the Model Code for Securities Transactions by Directors, and has reviewed and discussed its interim results - The group is committed to maintaining high standards of corporate governance and complies with the Corporate Governance Code[76](index=76&type=chunk) - The Audit Committee has reviewed the interim results and confirmed compliance with applicable accounting standards, laws, and regulations[75](index=75&type=chunk) [Audit Committee Review of Interim Results](index=20&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83%E5%AF%A9%E9%96%B1%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE) The Audit Committee, with management and KPMG, reviewed the interim results, confirming compliance with applicable accounting standards, laws, and regulations - The Audit Committee, together with management and independent auditor KPMG, reviewed the interim results[75](index=75&type=chunk) - The Audit Committee concluded that the interim results comply with applicable accounting standards, laws, and regulations, and are appropriately disclosed[75](index=75&type=chunk) [Corporate Governance Code](index=20&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The group adopted and complied with all applicable code provisions of the Corporate Governance Code during the reporting period, appointing new Nomination Committee members in response to revisions - The group has complied with all applicable code provisions under the Corporate Governance Code during the reporting period[76](index=76&type=chunk) - In response to the revised Corporate Governance Code, the Board has appointed new members to the Nomination Committee[76](index=76&type=chunk) [Standard Code for Securities Transactions by Directors](index=20&type=section&id=%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%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 adopted the Model Code as the standard for directors' securities transactions, and all directors confirmed compliance during the reporting period - All directors confirmed compliance with the Standard Code for Securities Transactions by Directors during the reporting period[77](index=77&type=chunk) [Publication of Interim Results and Interim Report](index=20&type=section&id=%E5%88%8A%E7%99%BC%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%8F%8A%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) This announcement has been published on the HKEX and company websites, with the interim report to be issued and sent to shareholders requesting printed copies - This announcement has been published on the websites of Hong Kong Exchanges and Clearing Limited and the company[78](index=78&type=chunk) [Definitions](index=21&type=section&id=%E9%87%8B%E7%BE%A9) This section provides definitions for key terms and abbreviations used throughout the report to ensure clear understanding of the content - This section provides definitions for key terms and abbreviations used in the report to ensure clear understanding[79](index=79&type=chunk)[82](index=82&type=chunk)

[Company Profile](index=4&type=section&id=1%20Company%20Profile) The bank's legal Chinese name is Shengjing Bank Co., Ltd., with its registered office in Shenyang, Liaoning, China - The bank's legal Chinese name is Shengjing Bank Co., Ltd., abbreviated as Shengjing Bank[7](index=7&type=chunk) - Registered and office address: No. 109 Beizhan Road, Shenhe District, Shenyang City, Liaoning Province, China[7](index=7&type=chunk) - H-share registrar: Hong Kong Registrars Limited[9](index=9&type=chunk) - Auditor: Crowe (HK) CPA Limited[9](index=9&type=chunk) [Financial Highlights](index=6&type=section&id=2%20Financial%20Highlights) This section provides a concise overview of the bank's key financial performance, asset/liability, profitability, asset quality, and capital adequacy indicators for the reporting period Operating Results (H1 2025 vs H1 2024) | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Income | 4,325,668 | 4,560,146 | (5.1) | | Profit Before Tax | 754,150 | 650,980 | 15.8 | | Net Profit | 508,470 | 591,690 | (14.1) | | Net Profit Attributable to Equity Holders of the Bank | 493,537 | 576,594 | (14.4) | Major Asset/Liability Indicators (June 30, 2025 vs December 31, 2024) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 1,128,181,308 | 1,122,776,226 | 0.5 | | Total Loans and Advances | 514,872,706 | 500,592,244 | 2.9 | | Total Liabilities | 1,047,732,812 | 1,042,578,840 | 0.5 | | Total Customer Deposits | 791,469,266 | 780,589,201 | 1.4 | Profitability Indicators (H1 2025 vs H1 2024) | Indicator | H1 2025 (%) | H1 2024 (%) | Change (percentage points) | | :--- | :--- | :--- | :--- | | Return on Average Total Assets | 0.09 | 0.11 | (0.02) | | Return on Average Equity | 1.28 | 1.48 | (0.20) | | Net Interest Spread | 1.16 | 1.20 | (0.04) | | Net Interest Margin | 0.81 | 0.80 | 0.01 | | Cost-to-Income Ratio | 53.95 | 57.58 | (3.63) | Asset Quality Indicators (June 30, 2025 vs December 31, 2024) | Indicator | June 30, 2025 (%) | December 31, 2024 (%) | Change (percentage points) | | :--- | :--- | :--- | :--- | | Non-Performing Loan Ratio | 2.69 | 2.68 | 0.01 | | Provision Coverage Ratio | 157.00 | 157.00 | – | | Loan Loss Reserve Ratio | 4.22 | 4.21 | 0.01 | Capital Adequacy Ratio Indicators (June 30, 2025 vs December 31, 2024) | Indicator | June 30, 2025 (%) | December 31, 2024 (%) | Change (percentage points) | | :--- | :--- | :--- | :--- | | Core Tier 1 Capital Adequacy Ratio | 9.85 | 10.26 | (0.41) | | Tier 1 Capital Adequacy Ratio | 11.72 | 12.24 | (0.52) | | Capital Adequacy Ratio | 14.08 | 14.69 | (0.61) | [Management Discussion and Analysis](index=9&type=section&id=3%20Management%20Discussion%20and%20Analysis) This section provides an in-depth analysis of the bank's overall business performance, financial statements, and risk management strategies, along with its future outlook and development plans [Overall Business Performance](index=9&type=section&id=3.1%20Overall%20Business%20Performance) In the first half of 2025, Shengjing Bank achieved steady growth in total assets, deposits, and loans, optimizing its asset and liability structure while strengthening risk management Asset and Liability Scale Growth (As of June 30, 2025 vs End of Last Year) | Indicator | June 30, 2025 (RMB billions) | End of Last Year (RMB billions) | Growth (%) | | :--- | :--- | :--- | :--- | | Total Assets | 11,281.81 | 11,227.76 | 0.5 | | Total Deposits | 7,914.69 | 7,805.89 | 1.4 | | Total Loans | 5,148.73 | 5,005.92 | 2.9 | - Technology-driven loans increased by **39.6%** compared to the end of last year[16](index=16&type=chunk) - Green loans increased by **29.5%** compared to the end of last year[16](index=16&type=chunk) - Inclusive small and micro enterprise loans increased by **17.6%** compared to the end of last year[16](index=16&type=chunk) - Launched mobile banking version 7.0, adding **277,300** new mobile banking users in H1 2025[16](index=16&type=chunk) - Non-performing loan ratio was **2.69%**, an increase of **0.01 percentage points** from the end of last year[17](index=17&type=chunk) - Provision coverage ratio was **157.00%**, consistent with the end of last year[17](index=17&type=chunk) [Financial Statement Analysis](index=11&type=section&id=3.2%20Financial%20Statement%20Analysis) Financial statement analysis reveals a 14.1% year-on-year decrease in net profit for H1 2025, primarily due to lower interest income from declining asset yields and reduced non-interest income from market rate fluctuations [Income Statement Analysis](index=11&type=section&id=3.2.1%20Income%20Statement%20Analysis) In H1 2025, Shengjing Bank's net profit decreased by 14.1% year-on-year, mainly due to reduced interest income from declining asset yields and lower non-interest income from market rate fluctuations [Operating Income](index=12&type=section&id=3.2.1.1%20Operating%20Income) In H1 2025, Shengjing Bank's operating income decreased by 5.1% year-on-year to RMB 4.326 billion, primarily due to a decline in non-interest income influenced by market interest rate fluctuations Operating Income Change | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Operating Income | 4,325,668 | 4,560,146 | (234,478) | (5.1) | | Net Non-Interest Income | 940,281 | 1,324,358 | (384,077) | (29.0) | | Net Interest Income | 3,385,387 | 3,235,788 | 149,599 | 4.6 | - The decrease in operating income was mainly due to a year-on-year decline in non-interest income affected by market interest rate fluctuations[20](index=20&type=chunk) - Net interest income increased year-on-year, partially offsetting the decline in non-interest income[20](index=20&type=chunk) [Net Interest Income](index=12&type=section&id=3.2.1.2%20Net%20Interest%20Income) In H1 2025, Shengjing Bank's net interest income increased by 4.6% year-on-year to RMB 3.385 billion, driven by a larger decrease in interest expense compared to interest income Net Interest Income Change | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | 3,385,387 | 3,235,788 | 149,599 | 4.6 | | Interest Income | 15,603,519 | 16,442,995 | (839,476) | (5.1) | | Interest Expense | (12,218,132) | (13,207,207) | 989,075 | (7.5) | [Net Interest Margin and Net Interest Spread](index=13&type=section&id=3.2.1.3%20Net%20Interest%20Margin%20and%20Net%20Interest%20Spread) In H1 2025, Shengjing Bank's net interest spread was 1.16%, a decrease of 0.04 percentage points, while net interest margin was 0.81%, an increase of 0.01 percentage points Net Interest Spread and Net Interest Margin | Indicator | Six Months Ended June 30, 2025 (%) | Six Months Ended June 30, 2024 (%) | Change (percentage points) | | :--- | :--- | :--- | :--- | | Net Interest Spread | 1.16 | 1.20 | (0.04) | | Net Interest Margin | 0.81 | 0.80 | 0.01 | Interest Income Change Analysis (2025 vs 2024) | Interest-Earning Assets | Change due to Volume (RMB thousands) | Change due to Rate (RMB thousands) | Net Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Loans and Advances to Customers | 507,881 | (1,086,762) | (578,881) | | Financial Investments | 236,780 | (425,189) | (188,409) | | Deposits with Central Bank | (42,286) | (281) | (42,567) | | Due from and Placements with Banks and Other Financial Institutions | (71,813) | (6,295) | (78,108) | | Financial Assets Held Under Resale Agreements | 64,724 | (16,235) | 48,489 | | **Total Interest Income Change** | **695,286** | **(1,534,762)** | **(839,476)** | Interest Expense Change Analysis (2025 vs 2024) | Interest-Bearing Liabilities | Change due to Volume (RMB thousands) | Change due to Rate (RMB thousands) | Net Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Borrowings from Central Bank | 3,511 | (1,292) | 2,219 | | Customer Deposits | 336,162 | (1,030,696) | (694,534) | | Due to and Placements from Banks and Other Financial Institutions | 405,579 | (305,526) | 100,053 | | Financial Assets Sold Under Repurchase Agreements | (290,956) | (183,902) | (474,858) | | Debt Securities Issued | 126,912 | (48,867) | 78,045 | | **Total Interest Expense Change** | **581,208** | **(1,570,283)** | **(989,075)** | - Net interest income change: **RMB 114 million** from volume change, **RMB 35 million** from rate change, totaling **RMB 150 million**[31](index=31&type=chunk) [Interest Income](index=17&type=section&id=3.2.1.4%20Interest%20Income) In H1 2025, Shengjing Bank's interest income decreased by 5.1% year-on-year to RMB 15.604 billion, primarily due to lower interest income from loans and advances - In H1 2025, interest income was **RMB 15.604 billion**, a year-on-year decrease of **RMB 839 million**, or **5.1%**[35](index=35&type=chunk) - The main reason was a year-on-year decrease in interest income from loans and advances to customers[35](index=35&type=chunk) - In H1 2025, interest income from loans and advances to customers was **RMB 11.679 billion**, a year-on-year decrease of **RMB 579 million**, or **4.7%**[37](index=37&type=chunk) - Interest income from loans and advances to customers accounted for **74.9%** of total interest income, an increase of **0.4 percentage points** year-on-year[37](index=37&type=chunk) - Average yield on corporate loans decreased from **4.92%** to **4.74%**, and on personal loans from **5.68%** to **4.42%**[37](index=37&type=chunk) - In H1 2025, interest income from financial investments was **RMB 3.308 billion**, a year-on-year decrease of **RMB 188 million**, or **5.4%**[38](index=38&type=chunk) - In H1 2025, interest income from financial assets held under resale agreements was **RMB 124 million**, a year-on-year increase of **RMB 48 million**, or **64.2%**[40](index=40&type=chunk) [Interest Expense](index=20&type=section&id=3.2.1.5%20Interest%20Expense) In H1 2025, Shengjing Bank's interest expense decreased by 7.5% year-on-year to RMB 12.218 billion, mainly due to significant reductions in interest expense from deposits and repurchase agreements - In H1 2025, interest expense was **RMB 12.218 billion**, a year-on-year decrease of **RMB 989 million**, or **7.5%**[41](index=41&type=chunk) - The main reasons were year-on-year decreases in interest expense from customer deposits and financial assets sold under repurchase agreements[41](index=41&type=chunk) - In H1 2025, interest expense from customer deposits was **RMB 10.062 billion**, a year-on-year decrease of **RMB 695 million**, or **6.5%**[44](index=44&type=chunk) - The decrease in interest expense from customer deposits was mainly due to the deepening interest rate marketization reform and the bank's continuous strengthening of liability quality management to reduce funding costs[44](index=44&type=chunk) - Average interest rate on corporate demand deposits decreased from **1.53%** to **1.04%**, and on personal demand deposits from **0.20%** to **0.07%**[45](index=45&type=chunk) - In H1 2025, interest expense from financial assets sold under repurchase agreements was **RMB 588 million**, a year-on-year decrease of **RMB 475 million**, or **44.7%**[47](index=47&type=chunk) [Net Non-Interest Income](index=23&type=section&id=3.2.1.6%20Non-Interest%20Income) In H1 2025, Shengjing Bank's net non-interest income decreased by 29.0% year-on-year, despite a significant increase in net fee and commission income, due to reduced net trading gains and net investment income Net Non-Interest Income Change | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Non-Interest Income | 940,281 | 1,324,358 | (384,077) | (29.0) | - In H1 2025, net fee and commission income was **RMB 213 million**, a year-on-year increase of **RMB 194 million**, or **1,003.3%**[49](index=49&type=chunk) - The growth in net fee and commission income was mainly due to the bank's active promotion of business transformation and reduction of business cooperation fee expenses[49](index=49&type=chunk) - In H1 2025, net trading losses were **RMB 237 million**, a year-on-year decrease of **RMB 821 million**, or **77.6%**[51](index=51&type=chunk) - The decrease in net trading losses was mainly due to foreign exchange business costs and changes in fair value revaluation[51](index=51&type=chunk) - In H1 2025, net investment income was **RMB 883 million**, a year-on-year decrease of **RMB 1.459 billion**, or **62.3%**[52](index=52&type=chunk) - The decrease in net investment income was mainly due to reduced net gains from disposal of debt assets[52](index=52&type=chunk) [Operating Expenses](index=25&type=section&id=3.2.1.7%20Operating%20Expenses) In H1 2025, Shengjing Bank's operating expenses decreased by 10.4% year-on-year to RMB 2.486 billion, with notable reductions in staff costs, rent, property management fees, and other general and administrative expenses Total Operating Expenses Change | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Operating Expenses | 2,486,359 | 2,773,695 | (287,336) | (10.4) | - In H1 2025, staff costs were **RMB 1.443 billion**, a year-on-year decrease of **RMB 15 million**, or **1.0%**[56](index=56&type=chunk) - The decrease in staff costs was mainly due to year-on-year reductions in salaries, bonuses, allowances, and social insurance contributions[56](index=56&type=chunk) - In H1 2025, rent and property management fees were **RMB 42 million**, a year-on-year decrease of **RMB 25 million**, or **37.1%**[59](index=59&type=chunk) - In H1 2025, other general and administrative expenses were **RMB 461 million**, a year-on-year decrease of **RMB 273 million**, or **37.2%**[61](index=61&type=chunk) [Asset Impairment Losses](index=27&type=section&id=3.2.1.8%20Asset%20Impairment%20Losses) In H1 2025, Shengjing Bank's asset impairment losses decreased by 4.4% year-on-year to RMB 1.085 billion, driven by a substantial reduction in financial investment impairment losses despite an increase in loan impairment losses Total Asset Impairment Losses Change | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total | 1,085,159 | 1,135,471 | (50,312) | (4.4) | - In H1 2025, impairment losses on loans and advances to customers were **RMB 902 million**, a year-on-year increase of **RMB 153 million**, or **20.4%**[63](index=63&type=chunk) - In H1 2025, impairment losses on financial investments were **RMB 155 million**, a year-on-year decrease of **RMB 835 million**, or **84.3%**[63](index=63&type=chunk) [Income Tax Expense](index=28&type=section&id=3.2.1.9%20Income%20Tax%20Expense) In H1 2025, Shengjing Bank's income tax expense amounted to RMB 246 million - In H1 2025, income tax expense was **RMB 246 million**[64](index=64&type=chunk) [Statement of Financial Position Analysis](index=28&type=section&id=3.2.2%20Statement%20of%20Financial%20Position%20Analysis) As of June 30, 2025, Shengjing Bank's total assets and liabilities both saw slight increases, with shareholders' equity also rising marginally, reflecting ongoing optimization of its asset and liability structure [Assets](index=28&type=section&id=3.2.2.1%20Assets) As of June 30, 2025, Shengjing Bank's total assets increased by 0.5% to RMB 1,128.181 billion, with loans and advances, financial investments, and cash as primary components - As of June 30, 2025, total assets were **RMB 1,128.181 billion**, an increase of **RMB 5.405 billion** or **0.5%** from the end of last year[65](index=65&type=chunk) - Major components: net loans and advances to customers (**49.1%**), financial investments (**38.5%**), and cash and deposits with central bank (**5.8%**)[65](index=65&type=chunk) - As of June 30, 2025, total loans and advances to customers were **RMB 514.873 billion**, an increase of **RMB 14.280 billion** or **2.9%** from the end of last year[68](index=68&type=chunk) - Loans and advances to customers accounted for **45.6%** of total assets, an increase of **1.0 percentage point** from the end of last year[68](index=68&type=chunk) - Corporate loans (including bill discounts) were **RMB 393.833 billion**, an increase of **2.0%**[71](index=71&type=chunk) - Personal loans were **RMB 121.040 billion**, an increase of **5.6%**[72](index=72&type=chunk) - Personal consumer loans increased from **RMB 60.144 billion** to **RMB 68.897 billion**[69](index=69&type=chunk) - As of June 30, 2025, financial investments balance was **RMB 431.004 billion**, a decrease of **RMB 25.968 billion** or **5.7%** from the end of last year[77](index=77&type=chunk) - Financial investments accounted for **38.2%** of total assets, a decrease of **2.5 percentage points** from the end of last year[77](index=77&type=chunk) - Financial investments at fair value through profit or loss decreased by **11.18%**[79](index=79&type=chunk) - Financial investments at fair value through other comprehensive income decreased by **24.83%**[79](index=79&type=chunk) - Financial investments at amortized cost increased by **3.10%**[80](index=80&type=chunk) [Liabilities](index=36&type=section&id=3.2.2.2%20Liabilities) As of June 30, 2025, Shengjing Bank's total liabilities increased by 0.5% to RMB 1,047.733 billion, with deposits being the largest component, and issued bonds showing significant growth - As of June 30, 2025, total liabilities were **RMB 1,047.733 billion**, an increase of **RMB 5.154 billion** or **0.5%** from the end of last year[84](index=84&type=chunk) - Major components: customer deposits (**78.2%**), due to and placements from banks and other financial institutions (**9.1%**), and financial assets sold under repurchase agreements (**6.2%**)[84](index=84&type=chunk) - As of June 30, 2025, total customer deposits were **RMB 791.469 billion**, an increase of **RMB 10.880 billion** or **1.4%** from the end of last year[86](index=86&type=chunk) - Customer deposits accounted for **75.5%** of total liabilities, an increase of **0.6 percentage points** from the end of last year[86](index=86&type=chunk) - Personal deposits increased by **RMB 21.045 billion**, or **3.8%**, from the end of last year[86](index=86&type=chunk) - Corporate deposits decreased by **RMB 12.179 billion** from the end of last year[86](index=86&type=chunk) - As of June 30, 2025, total debt securities issued were **RMB 23.390 billion**, an increase of **RMB 4.652 billion** or **24.8%** from the end of last year[89](index=89&type=chunk)[91](index=91&type=chunk) - The balance of interbank certificates of deposit issued was **RMB 12.391 billion**, an increase of **RMB 4.652 billion** from the end of last year[91](index=91&type=chunk) [Shareholders' Equity](index=40&type=section&id=3.2.2.3%20Shareholders%20Equity) As of June 30, 2025, Shengjing Bank's total shareholders' equity increased by 0.3% to RMB 80.448 billion, with an increase in retained earnings partially offset by decreases in investment revaluation reserves and non-controlling interests - As of June 30, 2025, total shareholders' equity was **RMB 80.448 billion**, an increase of **RMB 251 million** or **0.3%** from the end of last year[92](index=92&type=chunk) Shareholders' Equity Composition | Indicator | June 30, 2025 (RMB thousands) | % of Total | December 31, 2024 (RMB thousands) | % of Total | | :--- | :--- | :--- | :--- | :--- | | Share Capital | 8,796,680 | 10.9 | 8,796,680 | 11.0 | | Capital Reserve | 26,943,067 | 33.5 | 26,957,822 | 33.6 | | Surplus Reserve | 7,577,198 | 9.4 | 7,537,771 | 9.4 | | General Reserve | 14,890,179 | 18.5 | 14,846,802 | 18.5 | | Investment Revaluation Reserve | (2,610,850) | (3.2) | (2,561,420) | (3.2) | | Retained Earnings | 24,483,453 | 30.4 | 24,072,720 | 30.0 | | Non-Controlling Interests | 406,432 | 0.5 | 583,472 | 0.7 | [Loan Quality Analysis](index=41&type=section&id=3.2.3%20Loan%20Quality%20Analysis) Shengjing Bank continued to optimize its credit structure and strengthen risk control during the reporting period, resulting in a slight increase in the non-performing loan ratio to 2.69% [Five-Category Loan Classification](index=41&type=section&id=3.2.3.1%20Loan%20Five-Category%20Classification) As of June 30, 2025, Shengjing Bank's total non-performing loans amounted to RMB 13.829 billion, with a non-performing loan ratio of 2.69%, a slight increase of 0.01 percentage points from the end of last year Non-Performing Loan Status | Indicator | June 30, 2025 (RMB thousands) | % of Total | December 31, 2024 (RMB thousands) | % of Total | | :--- | :--- | :--- | :--- | :--- | | Non-Performing Loans | 13,828,539 | 2.69 | 13,437,687 | 2.68 | | Normal Loans | 480,840,294 | 93.4 | 467,100,612 | 93.4 | [Loan Concentration](index=42&type=section&id=3.2.3.2%20Loan%20Concentration) As of June 30, 2025, Shengjing Bank's corporate loans were primarily concentrated in five industries, with the top ten single borrowers' loans all classified as normal Industry Loan Concentration (As of June 30, 2025) | Industry | Loan Amount (RMB thousands) | % of Total | Non-Performing Loan Amount (RMB thousands) | Non-Performing Loan Ratio (%) | | :--- | :--- | :--- | :--- | :--- | | Wholesale and Retail Trade | 148,359,870 | 28.9 | 6,068,540 | 4.09 | | Leasing and Business Services | 67,086,574 | 13.0 | 573,411 | 0.85 | | Real Estate | 39,316,526 | 7.6 | 476,285 | 1.21 | | Manufacturing | 36,849,974 | 7.2 | 1,275,244 | 3.46 | | Construction | 12,630,407 | 2.5 | 682,867 | 5.41 | - The total loan balance for the top five industries was **RMB 304.243 billion**, accounting for **59.1%** of total loans and advances[102](index=102&type=chunk) - Loans to the top ten single borrowers were all classified as normal[103](index=103&type=chunk) [Non-Performing Loan Distribution by Product Type](index=45&type=section&id=3.2.3.3%20Non-Performing%20Loan%20Distribution%20by%20Product%20Type) As of June 30, 2025, Shengjing Bank's non-performing loan ratio was 2.69%, with corporate NPLs decreasing and personal NPLs increasing, particularly in housing mortgages and consumer loans - As of June 30, 2025, the bank's non-performing loan ratio was **2.69%**[104](index=104&type=chunk) - As of June 30, 2025, the non-performing loan ratio for corporate loans was **2.51%**, a decrease from **2.62%** as of December 31, 2024[105](index=105&type=chunk) - As of June 30, 2025, the non-performing loan ratio for personal loans was **3.26%**, an increase from **2.90%** as of December 31, 2024[105](index=105&type=chunk) - The non-performing loan ratio for housing mortgage loans increased from **3.66%** to **4.34%**[104](index=104&type=chunk) - The non-performing loan ratio for personal consumer loans increased from **2.23%** to **2.41%**[104](index=104&type=chunk) [Capital Adequacy Ratio Analysis](index=46&type=section&id=3.2.4%20Capital%20Adequacy%20Ratio%20Analysis) As of June 30, 2025, Shengjing Bank's core Tier 1 capital adequacy ratio was 9.85%, Tier 1 capital adequacy ratio was 11.72%, and total capital adequacy ratio was 14.08%, all meeting regulatory requirements despite a slight decrease Capital Adequacy Ratio Indicators | Indicator | June 30, 2025 (%) | December 31, 2024 (%) | Change (percentage points) | | :--- | :--- | :--- | :--- | | Core Tier 1 Capital Adequacy Ratio | 9.85 | 10.26 | (0.41) | | Tier 1 Capital Adequacy Ratio | 11.72 | 12.24 | (0.52) | | Capital Adequacy Ratio | 14.08 | 14.69 | (0.61) | - All capital adequacy ratios met regulatory requirements[106](index=106&type=chunk) [Segment Information](index=48&type=section&id=3.2.5%20Segment%20Information) Shengjing Bank primarily operates within China, with corporate banking being the largest revenue contributor, followed by retail banking and treasury business [Geographical Segments](index=48&type=section&id=3.2.5.1%20Geographical%20Segments) Shengjing Bank primarily operates within China, with the Northeast region being its main source of operating income, accounting for 88.2% of the total Geographical Segment Operating Income (H1 2025) | Region | Operating Income (RMB thousands) | % of Total | | :--- | :--- | :--- | | Northeast Region | 3,815,898 | 88.2 | | North China Region | 370,665 | 8.6 | | Other | 139,105 | 3.2 | [Business Segments](index=49&type=section&id=3.2.5.2%20Business%20Segments) In H1 2025, Shengjing Bank's corporate banking business accounted for the highest proportion of operating income at 64.2%, with retail banking and treasury business following at 18.0% and 16.0% respectively Business Segment Operating Income (H1 2025 vs H1 2024) | Business Segment | 2025 (RMB thousands) | % of Total | 2024 (RMB thousands) | % of Total | | :--- | :--- | :--- | :--- | :--- | | Corporate Banking Business | 2,777,012 | 64.2 | 2,533,834 | 55.6 | | Retail Banking Business | 777,878 | 18.0 | 1,128,556 | 24.7 | | Treasury Business | 693,624 | 16.0 | 879,821 | 19.3 | [Off-Balance Sheet Commitments](index=49&type=section&id=3.2.6%20Off-Balance%20Sheet%20Commitments) As of June 30, 2025, Shengjing Bank's total off-balance sheet credit commitments amounted to RMB 49.933 billion, a 16.2% decrease from the end of last year, primarily due to reductions in bank acceptance bills and letters of credit Credit Commitment Details (As of June 30, 2025 vs December 31, 2024) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Bank Acceptance Bills | 20,845,550 | 27,928,425 | (7,082,875) | (25.4) | | Letters of Guarantee Issued | 3,620,595 | 3,711,906 | (91,311) | (2.5) | | Letters of Credit Issued | 3,309,192 | 4,854,949 | (1,545,757) | (31.8) | | Unused Credit Card Limits | 22,157,752 | 23,059,759 | (902,007) | (3.9) | | **Total** | **49,933,089** | **59,555,039** | **(9,621,950)** | **(16.2)** | [Business Review](index=50&type=section&id=3.3%20Business%20Review) In H1 2025, Shengjing Bank comprehensively advanced the transformation and upgrading of its corporate, retail, and treasury banking businesses, focusing on serving the real economy, enhancing digital operations, and improving profitability [Corporate Banking Business](index=50&type=section&id=3.3.1%20Corporate%20Banking%20Business) Shengjing Bank's corporate banking business returned to its roots, focusing on its core responsibilities and implementing a "strengthen Shenyang, expand Liaoning, specialize outside, uplift county areas" strategy to achieve high-quality growth [Corporate Deposits](index=50&type=section&id=3.3.1.1%20Corporate%20Deposits) Shengjing Bank prioritized basic deposit growth by enhancing settlement fund ratios, deepening engagement with quality clients, strengthening client linkage marketing, and optimizing branch services - As of June 30, 2025, the bank's corporate deposit balance was **RMB 196.643 billion**[117](index=117&type=chunk) - Operating model: Implemented a "digital + comprehensive" operating model, strengthening client linkage marketing to increase the number of basic customer accounts[116](index=116&type=chunk) - Service system: Improved the classified and tiered service system for corporate clients, leveraging the upgraded corporate business integrated management platform to enhance digital management and service capabilities[117](index=117&type=chunk) [Corporate Loans](index=51&type=section&id=3.3.1.2%20Corporate%20Loans) Shengjing Bank's corporate loan business supported the real economy and national strategies, with significant credit allocation to Liaoshen region and substantial growth in technology-driven and green loans - Corporate loan balance (excluding bill discounts) was **RMB 346.404 billion**, an increase of **RMB 8.522 billion** or **2.5%** from the end of last year[118](index=118&type=chunk) - Credit allocation: Credit extended to "five key areas" and major enterprises in key sectors such as agriculture and manufacturing accounted for **65.9%**[118](index=118&type=chunk) - Technology-driven enterprise loans: Increased by **39.6%** from the end of last year[118](index=118&type=chunk) - Green credit: Increased by **29.5%** from the end of last year[118](index=118&type=chunk) [Transaction Banking](index=52&type=section&id=3.3.1.3%20Transaction%20Banking) Shengjing Bank's transaction banking business aligned with national policies, served the real economy, and enhanced comprehensive revenue by integrating products, enriching service offerings, and driving digital transformation - Transaction banking on- and off-balance sheet assets: As of June 30, 2025, equivalent to **RMB 39.958 billion**[119](index=119&type=chunk) - Transaction banking intermediary business income: **RMB 86 million**[119](index=119&type=chunk) [Retail Banking Business](index=52&type=section&id=3.3.2%20Retail%20Banking%20Business) Shengjing Bank's retail banking business focused on "strengthening foundations, optimizing structure, and enhancing efficiency" to build a new development paradigm, driving both quality and effectiveness [Personal Deposits](index=52&type=section&id=3.3.2.1%20Personal%20Deposits) Shengjing Bank's personal deposit business, centered on customer needs, achieved stable growth through a "digital + comprehensive" operating model, a balance between volume and price, and continuous optimization of deposit structure - Personal deposit balance: As of June 30, 2025, **RMB 576.093 billion**, an increase of **RMB 21.045 billion** or **3.8%** from the end of last year[123](index=123&type=chunk) - Strategy: Implemented a "digital + comprehensive" operating model, adhered to a "volume-price balance" strategy, and continuously optimized the deposit structure[121](index=121&type=chunk)[123](index=123&type=chunk) [Personal Loans](index=53&type=section&id=3.3.2.2%20Personal%20Loans) Shengjing Bank actively responded to national policies to boost consumption, upgrading personal loan services by focusing on key livelihood areas, innovating products, and enhancing risk management through advanced models - Personal loan balance: As of June 30, 2025, **RMB 121.040 billion**, an increase of **RMB 6.407 billion** or **5.6%** from the end of last year[124](index=124&type=chunk) - Policy response: Actively responded to national policies to expand domestic demand and boost consumption, formulating the "Shengjing Bank Action Plan for Developing Consumer Finance to Boost Consumption"[124](index=124&type=chunk) - Product innovation: Launched "Shengshan Loan" credit-based consumer loans and upgraded "Parking Space Loan"[124](index=124&type=chunk) - Risk management: Initiated a risk model quantitative upgrade project, applying advanced statistical and machine learning algorithms[124](index=124&type=chunk) [Debit Cards](index=54&type=section&id=3.3.2.3%20Debit%20Cards) Shengjing Bank innovated debit card products, creating a "basic card + featured card" matrix to serve diverse customer segments, particularly focusing on social security cardholders and expanding scenario-based ecosystems - Total debit cards issued: As of June 30, 2025, **21.4342 million** cards, an increase of **337,800** cards from the end of last year[125](index=125&type=chunk) - Total consumption transaction volume: **RMB 4.447 billion**[125](index=125&type=chunk) - Product strategy: Built a "basic card + featured card" dual-track product matrix, focusing on social security-related livelihood customer segments[125](index=125&type=chunk) [Asset Management](index=54&type=section&id=3.3.2.4%20Asset%20Management) Shengjing Bank's asset management business adhered to a "steady progress, steady improvement" philosophy, enhancing R&D innovation and building a comprehensive product portfolio with diverse maturities - Proprietary wealth management product scale: As of June 30, 2025, **RMB 38.746 billion**[128](index=128&type=chunk) - Intermediary business income: **RMB 100 million**[128](index=128&type=chunk) - Investment strategy: Adhered to a "small-amount, diversified, decentralized" investment strategy, optimized portfolio asset allocation, and actively sought high-quality assets aligned with green and tech-innovation themes[126](index=126&type=chunk)[128](index=128&type=chunk) [Treasury Business](index=55&type=section&id=3.3.3%20Treasury%20Business) Shengjing Bank's treasury business enhanced its trading profitability and strengthened interbank client channels by building a sustainable multi-asset, multi-strategy trading framework and an interbank client ecosystem - Trading framework: Constructed a multi-asset, multi-strategy active trading system, integrating macroeconomic fundamental judgments with micro-level trading[129](index=129&type=chunk) - Interbank cooperation: Built an interbank client ecosystem, increasing the number of interbank cooperative institutions and diversifying cooperation models[129](index=129&type=chunk) [Specialized Institutions and Subsidiaries](index=56&type=section&id=3.3.4%20Specialized%20Institutions%20and%20Subsidiaries) Shengjing Bank's specialized institutions and subsidiaries actively implemented the national inclusive finance strategy, enhancing financial services for small and micro enterprises, transforming credit card business, and strengthening risk control in consumer finance [Small Enterprise Financial Services Center](index=56&type=section&id=3.3.4.1%20Small%20Enterprise%20Financial%20Services%20Center) Shengjing Bank's Small Enterprise Financial Services Center deepened its inclusive finance strategy by refining service systems, strengthening financing coordination mechanisms, and increasing support for rural revitalization - Strategic deployment: Deeply implemented the national inclusive finance "grand article" strategic deployment[130](index=130&type=chunk) - Service system: Formulated the "Shengjing Bank 2025 Inclusive Business Development Guidance Opinion" to improve a multi-level, broad-coverage, and sustainable financial service system[130](index=130&type=chunk) - Financing coordination: Deepened the financing coordination mechanism supporting small and micro enterprises, establishing a "two-list" system[130](index=130&type=chunk) - Rural revitalization: Increased financial support for rural revitalization, applying characteristic credit products such as "Liaonong Loan" and "Shengchan Loan"[130](index=130&type=chunk) - Product innovation: Innovated and developed the digital inclusive product "Shengke Loan" to enhance product risk control capabilities[131](index=131&type=chunk) [Credit Card Center](index=57&type=section&id=3.3.4.2%20Credit%20Card%20Center) Shengjing Bank's Credit Card Center pursued a "1 stable, 1 improvement, 2 growth" strategy, integrating into the broader retail banking system, enhancing asset deployment, and refining digital risk control - Strategic objectives: Focused on the "1 stable, 1 improvement, 2 growth" strategic objectives, promoting credit card business transformation and integration into the broader retail banking operating system[132](index=132&type=chunk) - Asset deployment: Improved the auto finance business system, expanded cooperation networks with quality 4S stores, and iterated consumer finance products[132](index=132&type=chunk) - Customer management: Strengthened refined customer management, deployed offline high-frequency merchant scenarios, and activated consumption potential[132](index=132&type=chunk) - Risk control system: Improved the digital autonomous risk control system, promoted the application of big data and artificial intelligence technologies to enhance risk calculation accuracy and efficiency[132](index=132&type=chunk)[133](index=133&type=chunk) - Cumulative credit cards issued: As of June 30, 2025, **2.6955 million** cards, an increase of **71,500** cards or **2.7%** from the end of last year[133](index=133&type=chunk) [Shengyin Consumer Finance Co., Ltd.](index=58&type=section&id=3.3.4.3%20Shengyin%20Consumer%20Finance%20Co.,%20Ltd.) Shengyin Consumer Finance Co., Ltd. adjusted its business structure, strengthened risk control, and maintained a positive operating performance in a complex market environment, adhering to inclusive finance principles - Operating status: Faced with a complex market environment, the company's operating performance continued to improve, with all regulatory indicators meeting requirements[134](index=134&type=chunk) - Operating direction: Adhered to its core responsibilities, maintained an inclusive finance operating direction, continuously reduced various costs, and offered interest rate concessions to the public[134](index=134&type=chunk) - Strategic exploration: Continuously explored "technology finance, green finance, inclusive finance, elderly care finance, and digital finance"[134](index=134&type=chunk) [Distribution Channels](index=59&type=section&id=3.3.5%20Distribution%20Channels) Shengjing Bank continuously upgraded its distribution channels, transforming offline branches into comprehensive operating models, enriching e-banking functions, and integrating information technology into strategic development [Offline Channels](index=59&type=section&id=3.3.5.1%20Offline%20Channels) Shengjing Bank continued to transform and upgrade its offline branches to serve the real economy, creating comprehensive operating models that enhance convenience, government services, and elderly-friendly services - Number of branches: As of June 30, 2025, a total of **213** institutional branches[135](index=135&type=chunk) - Branch transformation: Built comprehensive operating branches, promoting the decentralization of inclusive finance and personal loan businesses, and conducting integrated operations for "corporate + personal," "assets + liabilities," and "settlement + financing"[135](index=135&type=chunk) - Service capabilities: Strengthened the construction of "non-financial +" scenarios, continuously enhancing branch convenience, government services, and elderly-friendly service capabilities[135](index=135&type=chunk) [E-Banking](index=59&type=section&id=3.3.5.2%20E-Banking) Shengjing Bank's e-banking services continued to improve, with corporate online banking adding new features and personal mobile banking launching version 7.0, leading to increased users and transaction volumes - Cumulative corporate online banking customers: As of June 30, 2025, **105,000** customers[137](index=137&type=chunk) - Corporate online banking transaction volume: **3.2266 million** transactions, a year-on-year increase of **21.3%**[137](index=137&type=chunk) - Cumulative corporate online banking transaction amount: **RMB 2,885.223 billion**, a year-on-year increase of **47.7%**[137](index=137&type=chunk) - Corporate online banking functional enhancements: Launched 18 new functions, including online payment, online signing for corporate mobile banking, and interbank time deposits[136](index=136&type=chunk) - Personal mobile banking: Launched mobile banking version 7.0, optimizing and upgrading **142** functions[138](index=138&type=chunk) - Cumulative personal mobile banking users: As of June 30, 2025, **4.8280 million** users, an increase of **6.1%** from the end of last year[138](index=138&type=chunk) - Personal mobile banking monthly active users: **1.0795 million** users, a year-on-year increase of **8.7%**[138](index=138&type=chunk) [Information Technology and R&D](index=60&type=section&id=3.3.5.3%20Information%20Technology%20and%20R%26D) Shengjing Bank's IT and R&D efforts were deeply integrated into its strategic planning, establishing a real-time monitoring system, innovating data governance, and accelerating the construction of a digital ecosystem - Operations monitoring: Successfully built a "real-time monitoring + automated inspection + intelligent early warning" three-in-one operations monitoring system[140](index=140&type=chunk) - Data governance: Innovatively established a "four-dimensional system" for data governance, achieving online management of metadata, implementation of data standards, and full-process quality monitoring[140](index=140&type=chunk) - Digital ecosystem: Fully committed to building an integrated "finance + life + government affairs" digital ecosystem, accelerating the construction of a full-scenario acquiring ecosystem[140](index=140&type=chunk) - Technology application: Focused on deploying RPA technology and artificial intelligence applications, achieving automated reporting of personal settlement accounts and large-scale application of intelligent marketing models and customer tags[140](index=140&type=chunk) [Risk Management](index=61&type=section&id=3.4%20Risk%20Management) Shengjing Bank enhanced its comprehensive risk management capabilities in line with its new three-year strategic plan, strengthening credit, operational, and market risk controls while advancing digital transformation [Credit Risk Management](index=62&type=section&id=3.4.1%20Credit%20Risk%20Management) Shengjing Bank maintained its market positioning, prioritized "five key areas" for business development, and strictly adhered to credit risk bottom lines by optimizing credit asset structure and enhancing asset quality - Strategic vision: Focused on the strategic vision of "being a good bank that benefits enterprises and people," adhering to the market positioning of "serving the local economy, serving small and medium-sized enterprises, and serving urban and rural residents"[143](index=143&type=chunk) - Policy guidance: Issued industry lending policies, strengthened risk control in key business areas, and guided credit resources to precise allocations[143](index=143&type=chunk) - Approval team: Established a specialized review and approval team to enhance the professionalism and scientific nature of approval decisions[143](index=143&type=chunk) - Control strategy: Implemented a credit control strategy with both support and pressure, deeply analyzing the risk status of existing credit clients[143](index=143&type=chunk) [Operational Risk Management](index=63&type=section&id=3.4.2%20Operational%20Risk%20Management) Shengjing Bank continuously established effective operational risk control mechanisms, adhering to a "three lines of defense" governance framework, and promoting proactive and refined operational risk management - Governance framework: Adhered to the "three lines of defense" operational risk governance framework, establishing effective operational risk control mechanisms[144](index=144&type=chunk) - Prevention awareness: Strengthened operational risk prevention awareness, fostering a mindset of "compliance first, risk upfront"[144](index=144&type=chunk) - Tool system: Improved the operational risk tool system, unified risk identification and control assessment standards, and clarified key risk indicator monitoring and early warning processes[144](index=144&type=chunk) - Supervision and inspection: Strengthened operational risk supervision and inspection, integrating various special inspections to thoroughly investigate and rectify management loopholes[144](index=144&type=chunk) [Market Risk Management](index=64&type=section&id=3.4.3%20Market%20Risk%20Management) Shengjing Bank steadily advanced its market risk management system, optimizing risk limits, strengthening daily monitoring, and progressing with system development to ensure stable and controllable market risk - Limit management: Reviewed and optimized market risk limits, formulating annual limit plans and related policies[145](index=145&type=chunk) - Daily monitoring: Strengthened daily monitoring and management of limits, actively responding to changes in the external environment and market fluctuations[145](index=145&type=chunk) - System development: Steadily advanced the market risk management system project, ensuring the completeness and reliability of information systems[145](index=145&type=chunk) [Interest Rate Risk in Banking Book Management](index=64&type=section&id=3.4.4%20Interest%20Rate%20Risk%20in%20Banking%20Book%20Management) Shengjing Bank maintained a prudent interest rate risk appetite, establishing a comprehensive management system that uses repricing gap analysis, sensitivity analysis, and stress testing to control risk levels - Management system: Established a comprehensive interest rate risk management system for the banking book, employing repricing gap analysis, net interest income and economic value sensitivity analysis, and stress testing methods[146](index=146&type=chunk) - Limit management: Strictly implemented the interest rate risk limit management mechanism for the banking book, continuously strengthening monitoring and analysis[146](index=146&type=chunk) - Strategy: Implemented duration adjustment strategies aligned with interest rate trends, and reasonably utilized interest rate pricing and internal funds transfer pricing (FTP) tools[146](index=146&type=chunk) [Liquidity Risk Management](index=65&type=section&id=3.4.5%20Liquidity%20Risk%20Management) Shengjing Bank's liquidity risk management adhered to prudent principles, establishing a comprehensive framework and system, and enhancing its resilience through limit monitoring, stress testing, and emergency mechanisms - Management principles: Liquidity risk appetite adhered to principles of capital, return, and risk matching, generally positioned as prudent and stable[147](index=147&type=chunk) - Management mechanisms: Established comprehensive limit early warning monitoring, stress testing, and emergency management mechanisms, strengthening daily cash flow management[147](index=147&type=chunk) - Funding sources: Actively expanded stable and diversified funding sources, strengthening the cornerstone effect of steady growth in general deposits[147](index=147&type=chunk) - Long-term management: Strengthened the "three-tier regular reserve + emergency reserve" long-term liquidity management mechanism[147](index=147&type=chunk) [Information Technology Risk Management](index=65&type=section&id=3.4.6%20Information%20Technology%20Risk%20Management) In H1 2025, Shengjing Bank continuously strengthened its information technology security system by establishing robust policies, building integrated data security platforms, and conducting comprehensive risk assessments - Security system: Continuously improved the information technology security system, with the technology, risk, and audit "three lines of defense" departments fulfilling their respective duties[148](index=148&type=chunk) - Policy development: Established and improved the information technology policy system, formulating the "Shengjing Bank 2025–2027 Information Security System Construction Plan"[148](index=148&type=chunk) - Platform construction: Built an integrated data security platform, a software development security management platform, and a security configuration verification and hardening system[148](index=148&type=chunk) - Security management: Ensured full-lifecycle secure development management, covering system security requirements, development design, testing and evaluation, and acceptance and deployment stages[148](index=148&type=chunk) [Reputational Risk Management](index=66&type=section&id=3.4.7%20Reputational%20Risk%20Management) Shengjing Bank refined its proactive reputational risk management mechanisms based on principles of foresight, alignment, comprehensiveness, and effectiveness, actively maintaining a positive brand image - Management principles: Focused on "foresight, alignment, comprehensiveness, and effectiveness" management principles, improving the normalized proactive reputational risk management mechanism[149](index=149&type=chunk) - Public opinion control: Conducted full-process public opinion control, including real-time monitoring, scientific analysis and judgment, dynamic tracking and early warning, and timely response and disposal[149](index=149&type=chunk) - Brand building: Strengthened brand system construction, promoting the "Sheng" series brands such as "Sheng Pioneer," "Shengqing," "Sheng Youth," and "Sheng Reading"[149](index=149&type=chunk) [Compliance Risk Management](index=66&type=section&id=3.4.8%20Compliance%20Risk%20Management) Shengjing Bank actively managed compliance risk by strengthening its management system, implementing a "positive norms, negative prohibitions, and penalties for violations" mechanism, and dynamically tracking regulatory changes - Management mechanism: Established a compliance management mechanism of "positive norms, negative prohibitions, and penalties for violations"[150](index=150&type=chunk) - Party building leadership: Led the entire bank in implementing the three-year compliance action plan under Party building guidance, clarifying the concept of "risk-based, compliance first"[150](index=150&type=chunk) - Policy adherence: Dynamically tracked changes in regulatory policies, clarified policy directions, and proactively adhered to regulations[151](index=151&type=chunk) - Supervision and inspection: Increased internal inspections and audit supervision, adhering to the principle of "horizontal reach, vertical depth, and full coverage"[151](index=151&type=chunk) [Anti-Money Laundering Risk Management](index=67&type=section&id=3.4.9%20Anti-Money%20Laundering%20Risk%20Management) Shengjing Bank deepened its anti-money laundering risk management by implementing the new Anti-Money Laundering Law, optimizing suspicious transaction monitoring models, and strengthening talent development and public awareness - Management philosophy: Deeply implemented the "risk-based" work philosophy, continuously deepening anti-money laundering risk management[152](index=152&type=chunk) - System development: Deeply implemented the requirements of the new "Anti-Money Laundering Law of the People's Republic of China" and other laws and regulations, continuously internalizing external regulations[152](index=152&type=chunk) - Monitoring system: Continuously optimized risk monitoring systems, such as suspicious transaction monitoring indicator models[152](index=152&type=chunk) - Talent reserve: Strengthened anti-money laundering talent reserve and professional梯隊 construction through head office centralized management and branch "bi-weekly" training[153](index=153&type=chunk) [Country Risk Management](index=68&type=section&id=3.4.10%20Country%20Risk%20Management) Shengjing Bank integrated country risk management into its comprehensive risk framework, establishing a robust control system that includes scientific measurement, monitoring, and annual internal risk ratings - Management system: Integrated country risk management into the comprehensive risk management system, establishing a complete country risk management control system[154](index=154&type=chunk) - Measurement and monitoring: Scientifically conducted country risk measurement and monitoring, accurately measuring the bank's overseas claims and liabilities[154](index=154&type=chunk) - Rating: Conducted annual internal comprehensive country risk ratings for countries and regions where overseas claims business has been or will be carried out[154](index=154&type=chunk) - System improvement: Improved country risk management policies, timely revising relevant policies[154](index=154&type=chunk) [Future Outlook and Development Strategy](index=69&type=section&id=3.5%20Future%20Outlook%20and%20Development%20Strategy) Shengjing Bank anticipates continued economic recovery in China, with opportunities in technology, green, and inclusive finance, and will pursue high-quality development guided by its "good bank" vision and regional strategies - Macroeconomic assessment: In H1 2025, the economy operated steadily with progress, GDP grew by **5.3%** year-on-year, and monetary policy was moderately loose[155](index=155&type=chunk) - Development opportunities: Key areas such as technological innovation, green transformation, and inclusive finance will continue to create development opportunities for the banking industry[156](index=156&type=chunk) - Strategic vision: Adhered to the strategic vision of "being a good bank that benefits enterprises and people"[156](index=156&type=chunk) - Strategic main line: Focused on the strategic main line of "strengthening Party building leadership and achieving high-quality development"[156](index=156&type=chunk) - Regional development strategy: Continued to deepen the implementation of the "strengthen Shenyang, expand Liaoning, specialize outside, uplift county areas" regional development strategy[156](index=156&type=chunk) - Key areas: Empowered the real economy through technology finance, practiced responsibility through green finance, and solidified foundations through inclusive finance, deepening regional operations and specialized capability building[156](index=156&type=chunk) [Share Capital Changes and Shareholder Information](index=70&type=section&id=4%20Share%20Capital%20Changes%20and%20Shareholder%20Information) This section details changes in the bank's share capital, including the holdings of major domestic and H-share shareholders, their interests, and information on ultimate controllers [Top Ten Domestic Shareholder Holdings](index=71&type=section&id=4.1%20Top%20Ten%20Domestic%20Shareholder%20Holdings) As of the latest practicable date, Shengjing Financial Holdings was the largest domestic shareholder with 20.79% equity, and the top ten domestic shareholders collectively held 50.12% of the total shares Top Ten Domestic Shareholder Holdings (As of the Latest Practicable Date) | No. | Shareholder Name | Shareholder Nature | Total Shares Held | % of Total Share Capital | Number of Pledged Shares | | :--- | :--- | :--- | :--- | :--- | :--- | | 1 | Shenyang Shengjing Financial Holdings Investment Group Co., Ltd. | State-owned | 1,829,225,327 | 20.79 | 0 | | 2 | Shenyang Hengxin State-owned Assets Management Group Co., Ltd. | State-owned | 479,933,014 | 5.46 | 0 | | 3 | Liaoning Huibao International Investment Group Co., Ltd. | Private | 400,000,000 | 4.55 | 400,000,000 | | 5 | Quzhou Xinan Development Co., Ltd. | State-owned | 300,000,000 | 3.41 | 80,000,000 | | **Total** | | | **4,409,158,341** | **50.12** | **480,000,000** | [Interests and Short Positions of Major Shareholders and Other Persons](index=72&type=section&id=4.2%20Interests%20and%20Short%20Positions%20of%20Major%20Shareholders%20and%20Other%20Persons) As of June 30, 2025, Shengjing Financial Holdings and Shenyang Hengxin were major domestic shareholders, while several entities and individuals held significant H-share interests, some indirectly through controlled corporations Domestic Shareholder Major Interests (As of June 30, 2025) | Shareholder Name | Nature of Interest | Number of Domestic Shares Held | % of Total Domestic Shares | % of Total Share Capital of the Bank | | :--- | :--- | :--- | :--- | :--- | | Shengjing Financial Holdings | Beneficial Owner | 1,829,225,327 | 28.33 | 20.79 | | Shenyang Hengxin | Beneficial Owner | 479,933,014 | 7.43 | 5.46 | | Shenyang Industrial Investment Development Group Co., Ltd. | Interest in Controlled Corporation | 479,933,014 | 7.43 | 5.46 | H-Share Major Interests (As of June 30, 2025) | Shareholder Name | Nature of Interest | Number of H-Shares Held | % of Total H-Shares | % of Total Share Capital of the Bank | | :--- | :--- | :--- | :--- | :--- | | Zhengbang Holdings Limited | Beneficial Owner | 400,000,000 | 17.09 | 4.55 | | Sun Chuhong | Interest in Controlled Corporation / Beneficial Owner | 420,898,500 | 17.98 | 4.78 | | Future Capital Group Limited | Beneficial Owner | 400,000,000 | 17.09 | 4.55 | | PEAK TRUST COMPANY-NV | Trustee | 406,761,000 | 17.38 | 4.62 | | Zhang Songqiao | Interest in Controlled Corporation / Beneficial Owner | 324,651,500 | 13.87 | 3.69 | [Shareholders Holding 5% or More of Total Share Capital](index=77&type=section&id=4.3%20Shareholders%20Holding%205%25%20or%20More%20of%20Total%20Share%20Capital) As of the end of the reporting period, Shengjing Financial Holdings and Shenyang Hengxin were major shareholders, holding 20.79% and 5.46% of the total share capital, respectively - Shengjing Financial Holdings held **1,829,225,327** domestic shares, accounting for **20.79%** of the total share capital[171](index=171&type=chunk) - Shenyang Hengxin held **479,933,014** domestic shares, accounting for **5.46%** of the total share capital[171](index=171&type=chunk) [Domestic Major Shareholders and Their Ultimate Controllers](index=77&type=section&id=4.4%20Domestic%20Major%20Shareholders%20and%20Their%20Ultimate%20Controllers) As of the end of the reporting period, Shengjing Financial Holdings and Shenyang Hengxin were the bank's major domestic shareholders, both ultimately controlled by the Shenyang State-owned Assets Supervision and Administration Commission Domestic Major Shareholders and Ultimate Controllers (As of the End of the Reporting Period) | Shareholder Name | Shareholding Ratio | Controlling Shareholder | Ultimate Controller | | :--- | :--- | :--- | :--- | | Shengjing Financial Holdings | 20.79% | Shenyang State-owned Assets Supervision and Administration Commission | Shenyang State-owned Assets Supervision and Administration Commission | | Shenyang Hengxin | 5.46% | Shenyang Industrial Investment Development Group Co., Ltd. | Shenyang State-owned Assets Supervision and Administration Commission | [Bonds Issued](index=78&type=section&id=4.5%20Bonds%20Issued) Details of the bank's issued bonds are provided in the "Bonds Issued" section of the Management Discussion and Analysis and Note 29 to the Interim Financial Statements - Details of issued bonds can be found in the "Bonds Issued" section of the "Management Discussion and Analysis" chapter and Note 29 to the "Notes to Interim Financial Statements" chapter[174](index=174&type=chunk) [Purchase, Redemption, and Sale of Listed Securities](index=78&type=section&id=4.6%20Purchase,%20Redemption,%20and%20Sale%20of%20Listed%20Securities) During the reporting period, Shengjing Bank and its subsidiaries did not purchase, redeem, or sell any of the bank's listed securities, and held no treasury shares at period-end - During the reporting period, the bank and its subsidiaries did not purchase, redeem, or sell any of the bank's listed securities[175](index=175&type=chunk) - As of the end of the reporting period, the bank did not hold any treasury shares[176](index=176&type=chunk) [Directors, Supervisors, Senior Management, and Employees](index=79&type=section&id=5%20Directors,%20Supervisors,%20Senior%20Management,%20and%20Employees) This section provides an overview of the bank's governance structure, including the composition of its Board of Directors, Board of Supervisors, and senior management, along with details on employee remuneration and training [Basic Information of Directors, Supervisors, and Senior Management](index=79&type=section&id=5.1%20Basic%20Information%20of%20Directors,%20Supervisors,%20and%20Senior%20Management) As of June 30, 2025, Shengjing Bank's Board of Directors comprised 5 executive, 4 non-executive, and 5 independent non-executive directors, while the Board of Supervisors included 3 shareholder, 3 external, and 3 employee supervisors - Board of Directors members: Including Sun Jin (Chairman), Liu Xu (President) and 3 other executive directors, Sun Zhenyu and 3 other non-executive directors, and Wang Mo and 4 other independent non-executive directors[177](index=177&type=chunk) - Board of Supervisors members: Including Liu Yan (Chairman of the Board of Supervisors) and 2 other shareholder supervisors, Xing Tiancai and 2 other external supervisors, and Yu Xiaolong and 2 other employee supervisors[177](index=177&type=chunk) - Senior management: Including Sun Yingpin (Assistant President), Bao Hong (Chief Financial Officer), and Zhou Zhi (Board Secretary)[177](index=177&type=chunk) [Interests and Short Positions of Directors, Supervisors, and Chief Executive in Shares, Underlying Shares, and Debentures of the Bank](index=80&type=section&id=5.2%20Interests%20and%20Short%20Positions%20of%20Directors,%20Supervisors,%20and%20Chief%20Executive%20in%20Shares,%20Underlying%20Shares,%20and%20Debentures%20of%20the%20Bank) As of the latest practicable date, none of Shengjing Bank's directors, supervisors, or chief executive, or their associates, held any disclosable interests or short positions in the bank's shares, underlying shares, or debentures - None of the bank's directors, supervisors, or chief executive, or their respective associates, held any interests or short positions in the shares, underlying shares, and debentures of the bank or its associated corporations that needed to be notified to the bank and the Hong Kong Stock Exchange[179](index=179&type=chunk) [Changes in Directors, Supervisors, and Senior Management](index=80&type=section&id=5.3%20Changes%20in%20Directors,%20Supervisors,%20and%20Senior%20Management) During the reporting period, there were changes in Shengjing Bank's Board of Directors and Board of Supervisors, including the resignation of Mr. Wang Jun and Mr. Niu Jiao, and the election of Mr. Li Weiming and Mr. Ma Lijun - Mr. Wang Jun resigned as a non-executive director and member of the Board's Audit Committee due to reaching the statutory retirement age[180](index=180&type=chunk) - Mr. Li Weiming was elected as a non-executive director of the bank's Eighth Board of Directors, with his qualification pending approval by the Liaoning Financial Regulatory Bureau[180](index=180&type=chunk) - Mr. Niu Jiao resigned as an employee supervisor and member of the Nomination Committee due to work arrangements[180](index=180&type=chunk) - Mr. Ma Lijun was elected as an employee supervisor of the bank[180](index=180&type=chunk) [Securities Transactions by Directors and Supervisors](index=81&type=section&id=5.4%20Securities%20Transactions%20by%20Directors%20and%20Supervisors) Shengjing Bank adopted the "Securities Dealing Rules" and confirmed that all directors and supervisors complied with these rules, which meet or exceed the standards of the Listing Rules Appendix C3 - The bank adopted the "Shengjing Bank Co., Ltd. Securities Dealing Rules for Directors, Supervisors, and Key Employees" ("Securities Dealing Rules"), with standards no lower than those in Appendix C3 of the Listing Rules[182](index=182&type=chunk) - All directors and supervisors confirmed that they complied with the Securities Dealing Rules throughout the reporting period[182](index=182&type=chunk) [Employees, Remuneration Policy, and Training Programs](index=81&type=section&id=5.5%20Employees,%20Remuneration%20Policy,%20and%20Training%20Programs) As of June 30, 2025, Shengjing Bank Group had 8,469 employees, with a market- and value-oriented remuneration policy that includes deferred payment for key personnel, and extensive training programs - Total employees: As of June 30, 2025, the Group had a total of **8,469** employees[183](index=183&type=chunk) - Remuneration policy: Adhered to market-oriented and value-oriented principles, establishing a diversified remuneration system, and implementing deferred payment for senior management and personnel in positions with significant risk influence[183](index=183&type=chunk) - Training programs: In H1 2025, a total of **11,421** training sessions were conducted, totaling **12,969** hours, with **200,584** participants[183](index=183&type=chunk) [Significant Matters](index=82&type=section&id=6%20Significant%20Matters) This section covers significant corporate governance, financial, and operational matters, including compliance with governance codes, dividend policies, related party transactions, and legal proceedings [Corporate Governance Code](index=82&type=section&id=6.1%20Corporate%20Governance%20Code) Shengjing Bank is committed to enhancing corporate governance transparency and accountability, complying with the Listing Rules Appendix C1 Corporate Governance Code and disclosure requirements for inside information - Compliance status: During the reporting period, the bank complied with the code provisions set out in Appendix C1 of the Listing Rules, "Corporate Governance Code," and the Listing Rules regarding disclosure of inside information[184](index=184&type=chunk) - Directors' attendance at general meetings: Mr. He Peng, Ms. Yang Xiu, Ms. Wang Hongmei, Mr. Wang Mo, Ms. Lü Dan, Mr. Chen Bainan, Ms. Wang Lan, and Mr. Huang Weiqiang attended the 2024 Annual General Meeting held on June 13, 2025[184](index=184&type=chunk) [Profit and Dividends](index=82&type=section&id=6.2%20Profit%20and%20Dividends) Shengjing Bank wil

[Financial Performance](index=1&type=section&id=Financial%20Performance) This section provides an overview of the Group's financial results, including condensed consolidated statements of profit or loss, comprehensive income, and financial position [Condensed Consolidated Statement of Profit or Loss](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) The Group's revenue decreased, but profit for the period significantly increased due to fair value gains on financial assets and lower finance costs | Metric | 2025 (RMB '000) | 2024 (RMB '000) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 2,502,643 | 2,832,300 | -11.64% | | Gross Profit | 1,205,070 | 1,441,217 | -16.40% | | Fair value gains/(losses) on financial assets at FVTPL, net | 538,781 | (12,272) | Significant improvement | | Finance Costs | (937,746) | (1,033,707) | -9.28% | | Profit before tax | 603,782 | 185,089 | +226.22% | | Profit for the period | 475,677 | 78,469 | +506.25% | | Profit/(loss) for the period attributable to owners of the Company | 49,600 | (363,152) | Turned profitable | | Basic and diluted earnings/(loss) per share | RMB0.82 cents | RMB(6.03) cents | Turned profitable | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) Total comprehensive income significantly increased due to higher profit for the period, despite negative impacts from fair value changes and exchange differences | Metric | 2025 (RMB '000) | 2024 (RMB '000) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Profit for the period | 475,677 | 78,469 | +506.25% | | Other comprehensive income/(loss) for the period | 54,482 | (53,377) | Turned profitable | | Total comprehensive income for the period | 530,159 | 25,092 | +2012.80% | | Total comprehensive income/(loss) for the period attributable to owners of the Company | 104,281 | (382,725) | Turned profitable | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Total assets and net assets increased, with a significant improvement in net current assets, reflecting a robust financial position | Metric | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Total non-current assets | 39,987,718 | 41,008,163 | -2.50% | | Total current assets | 27,543,482 | 25,166,199 | +9.45% | | Total current liabilities | 17,944,058 | 20,550,048 | -12.68% | | Net current assets | 9,599,424 | 4,616,151 | +107.96% | | Net assets | 17,922,190 | 17,758,041 | +0.92% | | Total equity | 17,922,190 | 17,758,041 | +0.92% | [Notes to the Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the condensed consolidated financial statements, covering company information, accounting policies, segment reporting, and specific financial asset and liability disclosures [Company Information and Basis of Preparation](index=6&type=section&id=Company%20Information%20and%20Basis%20of%20Preparation) This section details company information, the basis of interim financial statement preparation, including compliance with HKAS, presentation currency changes, and new HFRS adoption - The Company is an exempted company incorporated in Bermuda, with its shares listed on the Hong Kong Stock Exchange[8](index=8&type=chunk) - The interim financial statements are prepared in accordance with **Hong Kong Accounting Standard 34 "Interim Financial Reporting"** issued by the HKICPA[9](index=9&type=chunk) - The presentation currency of the consolidated financial statements changed from HKD to **RMB** from the year ended December 31, 2024, applied retrospectively to reflect the Group's primary operations and RMB-denominated transactions in mainland China[10](index=10&type=chunk) [Operating Segment Information](index=8&type=section&id=Operating%20Segment%20Information) The Group operates four reportable segments: Industrial, Standardized, Non-standard Investment, and Licensed Financial Services, with performance assessed by adjusted profit before tax - The Group operates **four reportable segments**: Industrial Investment, Standardized Investment, Non-standard Investment, and Licensed Financial Services[15](index=15&type=chunk)[17](index=17&type=chunk) Segment Revenue and Results (For the six months ended June 30) | Segment | 2025 Revenue (RMB '000) | 2024 Revenue (RMB '000) | 2025 Results (RMB '000) | 2024 Results (RMB '000) | | :--- | :--- | :--- | :--- | :--- | | Industrial Investment | 2,399,627 | 2,404,830 | 402,351 | 325,937 | | Standardized Investment | 14,607 | 74,392 | 406,126 | (26,471) | | Non-standard Investment | 58,617 | 313,273 | (176,989) | 63,354 | | Licensed Financial Services | 29,792 | 39,805 | 25,037 | (86,333) | | Total | 2,502,643 | 2,832,300 | 656,525 | 276,487 | - Over **90%** of the Group's revenue and assets are generated or located in China, thus no geographical segment information is presented[23](index=23&type=chunk)[24](index=24&type=chunk) [Revenue](index=12&type=section&id=Revenue) Revenue primarily from electricity sales and entrusted operation services, with photovoltaic power generation as the largest contributor, but overall customer contract revenue and interest income decreased Revenue from Contracts with Customers (For the six months ended June 30) | Revenue Source | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Photovoltaic power generation business | 1,299,207 | 1,341,417 | | Wind power business | 729,634 | 672,693 | | Entrusted operation services | 25,916 | 21,147 | | Construction and related services | 9,141 | 24,819 | | Provision of clean heating services | 335,729 | 344,754 | | Consultancy service income | – | 3,609 | | Brokerage business income | 4,401 | 4,543 | | Asset management and performance income | 315 | 400 | | **Total revenue from contracts with customers** | **2,404,343** | **2,413,382** | | Finance lease income | – | 48 | | Interest income from money lending business | 15,388 | 25,513 | | Interest income from debt investments | 28,968 | 313,273 | | Interest income from financial assets at FVTPL | 12,958 | 5,692 | | Interest income from financial assets at FVOCI | 40,986 | 74,392 | | **Total Revenue** | **2,502,643** | **2,832,300** | - In H1 2025, revenue recognized over time significantly increased to **RMB338,357 thousand** (2024: RMB7,945 thousand), while revenue recognized at a point in time decreased[25](index=25&type=chunk) [Other Gains and Losses, Net](index=13&type=section&id=Other%20Gains%20and%20Losses%2C%20Net) Net other gains and losses significantly decreased, primarily due to a shift from exchange gains to losses, partially offset by debt restructuring gains | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Exchange (losses)/gains, net | (69,207) | 46,442 | | Loss on disposal of finance lease receivables | (18,050) | – | | Debt restructuring gain | 99,362 | – | | Gain on extinguishment of debt | – | 43,671 | | **Total** | **12,105** | **81,198** | [Impairment Losses on Financial Assets](index=14&type=section&id=Impairment%20Losses%20on%20Financial%20Assets) Net impairment losses on financial assets reversed decreased, driven by increased reversals for finance lease receivables but reduced reversals for loans and trade receivables | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Finance lease receivables | 57,334 | 1,583 | | Loans receivable | (4,181) | 25,294 | | Trade and other receivables | 1,197 | 54,845 | | **Total** | **54,350** | **81,722** | [Finance Costs](index=14&type=section&id=Finance%20Costs) Total finance costs decreased, primarily due to reduced interest on bank borrowings, bonds, and lease liabilities | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Interest on bank borrowings | 829,309 | 845,943 | | Interest on other borrowings | 70,194 | 78,206 | | Interest on bonds | 79,987 | 115,545 | | Interest on lease liabilities | 57,951 | 115,745 | | **Total finance costs** | **1,037,441** | **1,155,439** | | Less: Finance costs included in cost of sales and services | (98,727) | (118,698) | | Less: Interest capitalised | (968) | (3,034) | | **Net finance costs** | **937,746** | **1,033,707** | [Components of Profit Before Tax](index=15&type=section&id=Components%20of%20Profit%20Before%20Tax) This section details income and expenses affecting profit before tax, including employee benefits, fair value changes, electricity sales costs, and depreciation, with significant improvement in FVTPL financial asset gains Key Income/Expense Items (For the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Total employee benefit expenses | 148,929 | 141,913 | | Fair value (gains)/losses on financial assets at FVTPL, net | (538,781) | 12,272 | | Cost of electricity sales and entrusted operation services | 901,259 | 867,087 | | Depreciation of property, plant and equipment | 699,879 | 625,963 | | Depreciation of right-of-use assets | 70,997 | 109,713 | [Income Tax Expense](index=17&type=section&id=Income%20Tax%20Expense) Income tax expense increased due to higher PRC corporate income tax and Hong Kong profits tax, and a shift from deferred tax income to expense | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | PRC corporate income tax | 127,211 | 137,400 | | Hong Kong profits tax | 399 | 5,420 | | Deferred tax | 495 | (36,239) | | **Total income tax expense** | **128,105** | **106,620** | - Certain subsidiaries enjoy **preferential corporate income tax rates** in China due to their engagement in photovoltaic and wind power station operations[38](index=38&type=chunk) [Earnings/(Loss) Per Share](index=18&type=section&id=Earnings%2F%28Loss%29%20Per%20Share) Basic and diluted earnings per share attributable to owners of the Company turned from a loss to a profit | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Profit/(loss) for the period attributable to owners of the Company (RMB '000) | 49,600 | (363,152) | | Weighted average number of ordinary shares ('000 shares) | 6,019,431 | 6,019,431 | | Basic and diluted earnings/(loss) per share (RMB cents) | 0.82 | (6.03) | [Dividends](index=18&type=section&id=Dividends) The Board decided not to declare any interim dividend for the current reporting period, consistent with the prior year - The Board will not declare any interim dividend for the current period, consistent with the prior period (for the six months ended June 30, 2024: nil)[41](index=41&type=chunk) [Property, Plant and Equipment](index=19&type=section&id=Property%2C%20Plant%20and%20Equipment) Additions to property, plant and equipment significantly increased, reflecting growth in capital expenditure | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Additions to property, plant and equipment | 474,242 | 136,420 | [Interests in Associates](index=19&type=section&id=Interests%20in%20Associates) Total interests in associates decreased due to reduced listed investment costs, but increased share of post-acquisition profit and exchange adjustments | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Cost of unlisted investments | 2,181,082 | 2,181,082 | | Cost of listed investments | 3,365,754 | 4,552,173 | | Share of post-acquisition profit and other comprehensive income | 77,746 | 26,747 | | Total interests in associates | 5,678,655 | 6,748,437 | [Financial Assets at Fair Value Through Other Comprehensive Income](index=20&type=section&id=Financial%20Assets%20at%20Fair%20Value%20Through%20Other%20Comprehensive%20Income) Total financial assets at fair value through other comprehensive income slightly decreased, driven by minor changes in unlisted equity investments and bonds | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Subtotal non-current assets | 853,972 | 868,011 | | Subtotal current assets | 3,378,361 | 3,404,179 | | **Total** | **4,232,333** | **4,272,190** | - The Group designates certain listed equity as measured at fair value through other comprehensive income, intending to hold them for the **long term**[44](index=44&type=chunk) [Financial Assets at Fair Value Through Profit or Loss](index=21&type=section&id=Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) Total financial assets at fair value through profit or loss significantly increased, driven by a substantial rise in listed equity investments held for trading | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Listed equity investments held for trading | 1,733,747 | 31,958 | | Investment funds held for trading | 180,984 | 178,132 | | Other investment funds | 553,773 | 553,173 | | Unlisted equity investments | 616,462 | 601,088 | | **Total** | **3,085,281** | **1,364,658** | [Finance Lease Receivables](index=22&type=section&id=Finance%20Lease%20Receivables) Carrying amount of finance lease receivables remained stable, all maturing within one year | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within one year | 293,319 | 294,019 | | **Carrying amount of finance lease receivables** | **293,319** | **294,019** | [Loans Receivable](index=22&type=section&id=Loans%20Receivable) Total loans receivable (net of impairment) decreased, mainly due to fewer 2-5 year loans, but more loans maturing within 90 days | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Gross loans receivable | 3,542,146 | 3,755,715 | | Less: Provision for impairment losses | (436,880) | (432,772) | | **Net amount** | **3,105,266** | **3,322,943** | | Due within 90 days | 933,292 | 851,105 | | Due in 2 to 5 years | 596,671 | 1,643,970 | [Contract Assets](index=23&type=section&id=Contract%20Assets) Total contract assets increased, primarily driven by growth in electricity price subsidies receivable | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Electricity price subsidies receivable | 728,435 | 659,052 | | Construction contracts | 34,859 | 31,029 | | **Total** | **763,294** | **690,081** | - Electricity price subsidies receivable represent renewable energy central government subsidies in China to be invoiced and settled after photovoltaic and wind power projects are listed for national subsidies[48](index=48&type=chunk) [Trade and Other Receivables](index=24&type=section&id=Trade%20and%20Other%20Receivables) Total trade and other receivables increased, driven by growth in electricity price subsidies receivable, but other receivables decreased | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade receivables | 1,631,474 | 1,606,035 | | Electricity price subsidies receivable | 8,153,340 | 7,168,375 | | Prepayments | 825,073 | 849,370 | | Deposits and other receivables | 1,737,352 | 2,257,843 | | **Total** | **13,552,175** | **13,022,150** | | Current assets | 12,702,061 | 12,166,002 | - The aging analysis of electricity price subsidies receivable indicates that the portion over **2 years old** accounts for the largest share, totaling **RMB4,120,090 thousand**[52](index=52&type=chunk) - The Group generally grants **30 to 90 days** credit to customers and accepts settlement by bank and commercial bills with **90 to 180 days** terms[52](index=52&type=chunk) [Trade Payables and Bills Payable](index=26&type=section&id=Trade%20Payables%20and%20Bills%20Payable) Total trade payables and bills payable slightly decreased, with an increase in amounts due within 90 days but a significant reduction in 181-day to 1-year maturities | Aging | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within 90 days | 19,728 | 9,862 | | 181 days to 1 year | 44,326 | 149,555 | | Over 2 years | 578,077 | 519,421 | | **Total** | **873,567** | **890,344** | - Trade payables and bills payable are generally settled within terms of **30 to 180 days**[54](index=54&type=chunk) [Borrowings](index=27&type=section&id=Borrowings) Total borrowings increased, driven by significant growth in non-current bank borrowings and bonds, while current borrowings decreased | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Bank borrowings | 34,994,528 | 32,086,591 | | Bonds | 4,949,596 | 5,026,320 | | Other borrowings | 4,996,563 | 5,926,528 | | **Total borrowings** | **44,940,687** | **43,039,439** | | Non-current liabilities | 29,836,627 | 25,875,627 | | Current liabilities | 15,104,060 | 17,163,812 | - The Group's borrowings are secured by various methods, including guarantees from Shandong Hi-Speed Group, the Company and/or its subsidiaries, pledges of financial assets, trade receivables, contract assets, property, plant and equipment, concession rights, bank deposits, and equity interests in subsidiaries[57](index=57&type=chunk) [Comparative Amounts](index=28&type=section&id=Comparative%20Amounts) Certain comparative amounts have been reclassified and restated to ensure consistency with the current period's presentation and accounting treatment - Certain comparative amounts have been reclassified and restated to ensure consistency with the current period's presentation and accounting treatment[56](index=56&type=chunk) [Management Discussion and Analysis](index=29&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's perspective on the Group's performance, market conditions, strategic initiatives, business segment reviews, financial resources, and future outlook [Market Review](index=29&type=section&id=Market%20Review) Global economy showed multipolar divergence with AI as a core growth engine; China's GDP grew 5.3% with structural optimization and green development - In H1 2025, the global economy showed multipolar divergence, with **artificial intelligence** emerging as a core growth engine[58](index=58&type=chunk) - China's H1 GDP grew by **5.3%** year-on-year, demonstrating stable economic operation, accelerated structural optimization, and increased contribution from new growth drivers[58](index=58&type=chunk) [Group Strategy and Operations](index=29&type=section&id=Group%20Strategy%20and%20Operations) The Group focuses on clean energy and intelligent computing, optimizing industrial operations, reducing traditional investments, and building a "precise investment-risk control-efficient exit" system - The Group focuses on strategic emerging industries like **clean energy** and **intelligent computing centers**, driving industrial operational optimization and upgrading[59](index=59&type=chunk) - As of June 30, 2025, the Group's total asset scale was approximately **RMB67.531 billion**, with emerging industry investment assets at **RMB51.976 billion**, representing **76.97%** of the total[60](index=60&type=chunk) - The Group prudently reduced exposure to traditional investment businesses, focusing on structured investment and financing across key industry value chains, and accelerating existing risk asset revitalization[60](index=60&type=chunk) [Business Review](index=30&type=section&id=Business%20Review) Business segments showed mixed performance, with significant profit growth in industrial investment, a turnaround in standardized investment, losses in non-standard investment, and improved licensed financial services [Industrial Investment Business](index=30&type=section&id=Industrial%20Investment%20Business) Industrial investment profit grew significantly, driven by the "Electricity-Computing Integration" strategy, successful new energy projects, and strong performance from 21Vianet - The Group fully empowers electricity-computing ecosystem enterprises, accelerating the implementation of the **"Electricity-Computing Integration" strategy**[61](index=61&type=chunk) - The new energy sector added over **350 MW** of development indicators, with Shandong Hi-Speed New Energy Group Limited having **4.9 GW** of new energy power generation projects under construction and approved[62](index=62&type=chunk) - The first "Electricity-Computing Integration" demonstration project, the Ulanqab source-grid-load-storage integration project, is progressing smoothly, with data center Phase I in commercial operation and Phase II advancing steadily[63](index=63&type=chunk) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Industrial Investment segment profit | 402,351 | 325,937 | [Standardized Investment Business](index=32&type=section&id=Standardized%20Investment%20Business) Despite severe market volatility, standardized investment achieved a turnaround to profit through a cautious fair value investment strategy - In H1 2025, global markets experienced severe volatility, with US Treasury yields fluctuating by over **50 basis points**[65](index=65&type=chunk) - The standardized fixed income portfolio maintained **low position levels** by adhering to a cautious investment strategy[65](index=65&type=chunk) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Standardized Investment business profit/(loss) at fair value | 508,000 | (28,000) | [Non-standard Investment Business](index=32&type=section&id=Non-standard%20Investment%20Business) Non-standard investment prioritized mitigating existing risks, reducing credit exposure through debt restructuring and asset revitalization, resulting in decreased revenue and a loss - The Group prioritized mitigating existing risks, implementing multiple measures to reduce credit exposure in existing non-standard investment businesses[66](index=66&type=chunk) - The Group prudently seized investment opportunities, focusing on strategic industrial investment directions and seeking potential target companies in new energy and new infrastructure sectors[66](index=66&type=chunk) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Non-standard Investment business profit/(loss) | (177,000) | 63,000 | [Licensed Financial Services](index=33&type=section&id=Licensed%20Financial%20Services) Licensed financial services recorded a profit, a significant improvement from a prior-period loss, primarily due to impairment reversals in finance lease business - The Group holds **Hong Kong SFC licenses** for regulated activities 1, 4, 5, 6, and 9, a Hong Kong money lender's license, and PRC licenses for QFLP fund management and finance leasing[68](index=68&type=chunk) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Licensed Financial Services business profit/(loss) | 25,000 | (86,000) | | Impairment reversal for finance lease business | 57,000 | - | [Outlook](index=33&type=section&id=Outlook) Global economy faces weak recovery with AI momentum; China will expand domestic demand and transform industries; the Group will capitalize on AI and build an "Electricity-Computing Integration" ecosystem - In H2 2025, the global economy is expected to maintain a weak recovery, with the **artificial intelligence revolution** injecting new momentum for growth[69](index=69&type=chunk) - The Chinese government will expand domestic demand, fostering a favorable financial environment for industrial transformation through moderately loose monetary and proactive fiscal policies[69](index=69&type=chunk) - The Group will seize national strategic opportunities and technological revolution trends, fully capitalizing on **AI development** to build a unique **"Electricity-Computing Integration"** emerging industry ecosystem[70](index=70&type=chunk) [Liquidity and Financial Resources](index=34&type=section&id=Liquidity%20and%20Financial%20Resources) The Group maintains ample liquidity, with increased cash, total assets, and borrowings, a slight rise in gearing, and ongoing monitoring of FX risks and capital commitments [Cash and Total Borrowings](index=34&type=section&id=Cash%20and%20Total%20Borrowings) Cash and cash equivalents, total assets, and total borrowings all increased, indicating expanded business scale and increased financing activities | Metric | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Total cash and cash equivalents | 4,576,636 | 4,308,390 | | Total assets | 67,531,200 | 66,174,362 | | Total borrowings | 44,940,687 | 43,039,439 | | Total equity attributable to owners of the Company | 443,542 | 1,117 | - Outstanding borrowings include bank borrowings of approximately **RMB34.99 billion**, bonds of approximately **RMB4.95 billion**, and other borrowings of approximately **RMB5.00 billion**[72](index=72&type=chunk) [Gearing Ratio](index=35&type=section&id=Gearing%20Ratio) The gearing ratio slightly increased, indicating a minor rise in leverage | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gearing Ratio | 66.55% | 65.04% | [Foreign Exchange Risk Management](index=35&type=section&id=Foreign%20Exchange%20Risk%20Management) The Group primarily faces RMB foreign exchange risk, deemed insignificant by management, with no hedging instruments used during the period - The Group primarily faces **RMB foreign exchange risk** and monitors its fluctuation impact[74](index=74&type=chunk) - Management considers the foreign exchange risk impact **insignificant** and did not use any financial or hedging instruments during the reporting period[74](index=74&type=chunk) [Pledge of Assets](index=36&type=section&id=Pledge%20of%20Assets) Certain bills payable, lease liabilities, and borrowings were secured by various assets and guarantees - Pledges include guarantees from Shandong Hi-Speed Group, the Company and/or its subsidiaries, pledges of financial assets, trade receivables, contract assets, property, plant and equipment, concession rights, bank deposits, and equity interests in subsidiaries and associates[75](index=75&type=chunk)[77](index=77&type=chunk) [Contingent Liabilities and Capital Commitments](index=36&type=section&id=Contingent%20Liabilities%20and%20Capital%20Commitments) No significant contingent liabilities, but contracted capital commitments exist for clean energy projects and joint venture capital injections | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Capital commitments for developing clean energy projects | 372,542 | 495,010 | | Capital commitments for injecting capital into joint ventures | 482,336 | 332,336 | [Significant Acquisitions and Disposals](index=37&type=section&id=Significant%20Acquisitions%20and%20Disposals) The Group further acquired Shandong Hi-Speed New Energy Group Limited equity, increasing its stake to 56.97%, and subsequently reached 60.66% after a mandatory cash offer - The Company further acquired a **13.52%** equity interest in Shandong Hi-Speed New Energy Group Limited for **HK$540,759,493.04**, increasing its stake from **43.45% to 56.97%**[78](index=78&type=chunk) - Following the offer's close, the Company and its concert parties' interest in Shandong Hi-Speed New Energy Group Limited increased to approximately **60.66%**[80](index=80&type=chunk) [Issue of Debt Securities](index=38&type=section&id=Issue%20of%20Debt%20Securities) The Group issued a US$500 million guaranteed bond and an RMB500 million medium-term note for refinancing and general corporate purposes - Coastal Emerald Limited issued **US$500 million** principal amount of **4.60% guaranteed bonds**, with net proceeds of approximately **US$498 million**[81](index=81&type=chunk) - A Shandong Hi-Speed New Energy Group Limited subsidiary issued **RMB500 million** principal amount of **2.30% medium-term notes**, with net proceeds of approximately **RMB499 million**[81](index=81&type=chunk) [Employees and Remuneration Policy](index=38&type=section&id=Employees%20and%20Remuneration%20Policy) Employee count decreased, but total staff costs increased; the Group focuses on attracting and retaining talent with competitive remuneration and development opportunities | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Number of employees | 1,899 | 2,160 | | Total staff costs (RMB billion) | 1.489 | 1.419 | - The Group formulates internal remuneration policies, offering competitive compensation packages based on qualifications, experience, market levels, and individual expertise[84](index=84&type=chunk) - The Group provides social insurance, housing provident fund, mandatory provident fund, statutory and additional leave benefits, and awards bonuses and incentives to outstanding employees[84](index=84&type=chunk) [Other Information](index=39&type=section&id=Other%20Information) This section covers additional disclosures including post-reporting period events, dividend policy, share dealings, corporate governance practices, and supplemental information on continuing connected transactions [Events After the Reporting Period](index=39&type=section&id=Events%20After%20the%20Reporting%20Period) Post-period, the Group disclosed two EPC contracts with Shandong Hi-Speed Group associates, aggregated and disclosed as connected transactions per Listing Rules - Feixian Zhuoneng New Energy signed the Feixian EPC contract with the joint contractor, with a total contract price of **RMB58,550,787.83**[87](index=87&type=chunk) - Transactions under the Feixian EPC contract and Yangzhou Weichai EPC contract are connected, aggregated per Listing Rules, and subject to reporting and announcement requirements[89](index=89&type=chunk)[91](index=91&type=chunk) [Dividends](index=41&type=section&id=Dividends) The Board reiterated its decision not to declare an interim dividend for the reporting period, consistent with the prior year - The Board did not declare an interim dividend for the reporting period (prior period: nil)[92](index=92&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=41&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the Company nor any subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the reporting period - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[93](index=93&type=chunk) [Corporate Governance](index=41&type=section&id=Corporate%20Governance) The Company complied with the Corporate Governance Code, with the Audit Committee reviewing financial statements and internal controls - The Company complied with all applicable code provisions of the **Corporate Governance Code** in Appendix C1 of the Listing Rules during the reporting period[94](index=94&type=chunk) - The Audit Committee reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025, confirming compliance with applicable accounting standards and requirements[96](index=96&type=chunk) - The Directors confirmed compliance with the **Model Code for Securities Transactions by Directors of Listed Issuers** in Appendix C3 of the Listing Rules throughout the reporting period[97](index=97&type=chunk) [Supplemental Information on Continuing Connected Transactions](index=42&type=section&id=Supplemental%20Information%20on%20Continuing%20Connected%20Transactions) This section provides supplemental information on 2024 continuing connected transactions, comparing actual amounts against annual caps for factoring and electricity sales agreements Actual Transaction Amounts for 2024 Continuing Connected Transactions | No | Transaction | Annual Cap (RMB '000) | Actual Transaction Amount (RMB '000) | | :--- | :--- | :--- | :--- | | (I) | Factoring Agreement – Provision of recourse factoring financing services | 252,200 | 223,690 | | (II) | 2023 Electricity Sales Agreement – Sale of electricity generated from photovoltaic power stations | 4,045 | 770 | | (III) | 2022 Electricity Sales Agreement – Sale of electricity to Beijing Enterprises Water Group Limited | 30,988 | 14,790 |

[Performance Summary](index=1&type=section&id=%E6%91%98%E8%A6%81) The Group's unaudited condensed consolidated results for the six months ended June 30, 2025, show decreased revenue and gross profit, a shift from profit to loss, and a basic loss per share of RMB 0.06 cents | Indicator | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Revenue | 29,306.1 | 32,825.2 | | Gross Profit | 514.2 | 821.6 | | Profit/(Loss) for the period | (5.8) | 147.8 | | (Loss)/Profit for the period attributable to owners of the Company | (9.9) | 77.4 | | Basic (Loss)/Profit per share | RMB (0.06) cents | RMB 0.43 cents | - For the six months ended June 30, 2025, revenue decreased by **10.72%** to **RMB 29,306,100,000** compared to the same period in 2024[4](index=4&type=chunk) - For the six months ended June 30, 2025, gross profit decreased by **37.41%** to **RMB 514,215,000** compared to the same period in 2024[4](index=4&type=chunk) [Condensed Consolidated Financial Statements](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the Group's condensed consolidated financial statements for the period [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) This section details the Group's financial performance for the six months ended June 30, 2025, showing a shift from profit to loss compared to the prior year | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 29,306,100 | 32,825,163 | | Cost of sales | (28,791,885) | (32,003,601) | | Gross profit | 514,215 | 821,562 | | Other income | 31,727 | 20,831 | | Selling expenses | (24,811) | (16,191) | | Administrative expenses | (305,687) | (335,015) | | Other operating expenses | (17,637) | (22,819) | | Net reversal of impairment losses under expected credit loss model | 1,087 | 698 | | Other gains and losses | 40,042 | 25,464 | | Finance costs | (235,240) | (257,744) | | Share of loss of associates | (674) | (450) | | Profit before tax | 3,022 | 236,336 | | Income tax expense | (8,786) | (88,576) | | (Loss)/Profit and total comprehensive (expense)/income for the period | (5,764) | 147,760 | | (Loss)/Profit and total comprehensive (expense)/income for the period attributable to owners of the Company | (9,900) | 77,442 | | Non-controlling interests | 4,136 | 70,318 | | (Loss)/Profit per share – Basic and diluted | RMB (0.06) cents | RMB 0.43 cents | [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) This section presents the Group's assets, liabilities, and equity as of June 30, 2025, showing an increase in net current assets but a slight decrease in net assets compared to December 31, 2024 | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Non-current assets** | | | | Property, plant and equipment | 8,498,402 | 8,790,387 | | Right-of-use assets | 866,951 | 855,593 | | Exploration and evaluation assets | 5,280 | 5,280 | | Intangible assets | 500,583 | 533,803 | | Interests in associates | 7,407 | 8,081 | | Deferred tax assets | 154,667 | 157,765 | | Other deposits | 75,171 | 75,196 | | **Total non-current assets** | **10,108,461** | **10,426,105** | | **Current assets** | | | | Inventories | 14,933,637 | 12,215,866 | | Trade and bills receivables | 61,280 | 85,587 | | Other deposits | 632,674 | 531,260 | | Prepayments and other receivables | 604,826 | 1,013,953 | | Derivative financial instruments | 27,577 | 63,551 | | Structured bank deposits | 500,000 | – | | Restricted bank deposits | 3,762 | 3,219 | | Cash, deposits and bank balances | 1,878,029 | 1,532,031 | | **Total current assets** | **18,641,785** | **15,445,467** | | **Current liabilities** | | | | Trade payables | 4,658,976 | 2,456,859 | | Other payables and accrued expenses | 1,268,855 | 1,481,762 | | Contract liabilities | 138,922 | 218,834 | | Bank and other borrowings | 7,551,798 | 8,130,983 | | Lease liabilities | 15,028 | 5,779 | | Derivative financial instruments | 24,390 | 20,211 | | Early retirement obligations | 5,208 | 10,650 | | Current income tax liabilities | 474 | 2,864 | | **Total current liabilities** | **13,663,651** | **12,327,942** | | **Net current assets** | **4,978,134** | **3,117,525** | | **Total assets less current liabilities** | **15,086,595** | **13,543,630** | | **Non-current liabilities** | | | | Other payables | 380,252 | 375,039 | | Bank and other borrowings | 8,406,701 | 6,899,371 | | Lease liabilities | 132,640 | 117,980 | | Bills payable | 1,244,012 | 1,223,012 | | Provision for mine reclamation, restoration and dismantling | 101,043 | 99,901 | | Deferred income | 114,797 | 115,413 | | Early retirement obligations | 26,400 | 26,400 | | **Total non-current liabilities** | **10,405,845** | **8,857,116** | | **Net assets** | **4,680,750** | **4,686,514** | | **Capital and reserves** | | | | Share capital | 727,893 | 727,893 | | Share premium and reserves | 2,345,818 | 2,355,718 | | **Equity attributable to owners of the Company** | **3,073,711** | **3,083,611** | | Non-controlling interests | 1,607,039 | 1,602,903 | | **Total equity** | **4,680,750** | **4,686,514** | [Notes to the Condensed Consolidated Financial Statements](index=5&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%E9%99%84%E8%A8%BB) This section provides explanatory notes to the condensed consolidated financial statements [1. General Information](index=5&type=section&id=1.%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) This section introduces China Daye Non-Ferrous Metals Mining Limited's basic information, including its registration, listing, main businesses, and holding companies - The Company's principal activities are investment holding, and its subsidiaries are principally engaged in ore mining and processing and sales/trading of metal products[8](index=8&type=chunk) - The functional currency of the Company is Renminbi[9](index=9&type=chunk) [2. Basis of Preparation](index=5&type=section&id=2.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) This section explains that the condensed consolidated financial statements are prepared in accordance with HKAS 34 and Listing Rules, on a going concern basis, with sufficient working capital for the next 12 months - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and the applicable disclosure requirements of the Listing Rules[10](index=10&type=chunk) - The directors believe the Group will have sufficient working capital to fund its normal operations for the next twelve months, thus prepared on a going concern basis[10](index=10&type=chunk) [3. Principal Accounting Policies](index=5&type=section&id=3.%20%E4%B8%BB%E8%A6%81%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) This section briefly states that the financial statements are prepared on a historical cost basis, with no significant impact from the first-time application of revised HKFRS accounting standards - The condensed consolidated financial statements are prepared on a historical cost basis, except for certain financial instruments measured at fair value where applicable[11](index=11&type=chunk) - The application of revised HKFRS accounting standards had no significant impact on the Group's financial performance, position, and/or disclosures for the current and prior periods[12](index=12&type=chunk) [4. Revenue](index=6&type=section&id=4.%20%E6%94%B6%E5%85%A5) This section analyzes the Group's revenue by product, service, and geographical location, showing mainland China as the primary source Revenue by Product and Service Category | Product and Service Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Sales of goods | 29,296,097 | 32,806,937 | | Provision of services | 10,003 | 18,226 | | **Total Revenue** | **29,306,100** | **32,825,163** | Sales of Goods Breakdown | Sales of Goods Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Cathode copper | 23,047,740 | 27,736,350 | | Other copper products | 330,701 | 243,112 | | Gold and other gold products | 3,024,809 | 1,534,245 | | Silver and other silver products | 2,128,495 | 2,853,446 | | Sulfuric acid and sulfur concentrate | 569,082 | 163,003 | | Iron ore | 85,814 | 105,630 | | Others | 109,456 | 171,151 | | **Total Sales of Goods** | **29,296,097** | **32,806,937** | Revenue by Customer Location | Customer Location | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Mainland China | 25,934,568 | 32,275,614 | | Hong Kong | 728,466 | 196,893 | | Others | 2,643,066 | 352,656 | | **Total Revenue** | **29,306,100** | **32,825,163** | [5. Segment Information](index=6&type=section&id=5.%20%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) This section states that no operating segment information is presented due to the lack of further specific financial data, with all non-current assets located in mainland China - The Company's chief operating decision-maker reviews revenue by individual product and service categories, and no further specific financial information is provided, thus no operating segment information is presented[14](index=14&type=chunk) - All of the Group's non-current assets (excluding financial instruments and deferred tax assets) are located in mainland China by geographical location[15](index=15&type=chunk) [6. Other Income](index=7&type=section&id=6.%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) This section lists the Group's other income sources for the six months ended June 30, 2025, primarily including interest income, recognized deferred income, and government grants, with government grants showing a significant year-on-year increase | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest income from banks | 337 | 564 | | Interest income from CNMC Finance Co., Ltd. | 5,248 | 4,005 | | Recognized deferred income | 7,991 | 7,717 | | Other government grants | 17,128 | 7,998 | | Others | 1,023 | 547 | | **Total** | **31,727** | **20,831** | - Government grants for the six months ended June 30, 2025, mainly for domestic and foreign trade incentive funds, increased compared to the same period last year[17](index=17&type=chunk) [7. Net Reversal of Impairment Losses under Expected Credit Loss Model](index=7&type=section&id=7.%20%E9%A0%90%E6%9C%9F%E4%BF%A1%E8%B2%B8%E6%90%8D%E5%A4%B1%E6%A8%A1%E5%BC%8F%E4%B8%8B%E5%B7%B2%E6%92%A5%E5%9B%9E%E6%B8%9B%E5%80%BC%E虧%E6%90%8D%E6%B7%A8%E9%A1%8D) This section discloses the Group's net reversal of impairment losses for trade and other receivables under the expected credit loss model, with the net reversal amount increasing year-on-year | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables | 987 | 899 | | Other receivables | 100 | (201) | | **Total** | **1,087** | **698** | [8. Other Gains and Losses](index=8&type=section&id=8.%20%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E5%8F%8A%E虧%E6%90%8D) This section details the Group's other gains and losses for the period, primarily including gains on disposal of right-of-use assets, write-off of property, plant and equipment, and net exchange gains, with net exchange gains being the largest contributor | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Loss on disposal of property, plant and equipment | – | (12,430) | | Gain on disposal of right-of-use assets | 1,914 | – | | Write-off of property, plant and equipment | (3,555) | (110) | | Net exchange gains | 41,683 | 38,004 | | **Total** | **40,042** | **25,464** | [9. Finance Costs](index=8&type=section&id=9.%20%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) This section discloses the Group's finance costs for the six months ended June 30, 2025, primarily interest on bank and other borrowings, with total finance costs decreasing by 8.73% year-on-year due to lower bank loan interest rates | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest on bank and other borrowings | 191,847 | 212,504 | | Interest on loans from Daye Non-Ferrous Metals Group Holding Co., Ltd. and its subsidiaries | 14,023 | 14,300 | | Interest on loans from finance companies | 3,920 | 1,549 | | Interest on loans from a fellow subsidiary | – | 4,311 | | Interest on lease liabilities | 3,308 | 3,129 | | Interest on bills payable | 21,000 | 21,116 | | Reversal of interest on provision for mine reclamation, restoration and dismantling | 1,142 | 835 | | **Total** | **235,240** | **257,744** | - Finance costs decreased by **8.73%** compared to the previous period, primarily due to lower bank loan interest rates year-on-year[57](index=57&type=chunk) [10. Income Tax Expense](index=8&type=section&id=10.%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) This section details the Group's income tax expense for the period, including PRC corporate income tax and deferred tax, with total income tax expense significantly decreasing year-on-year | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | PRC corporate income tax | 5,688 | 66,019 | | Deferred tax | 3,098 | 22,557 | | **Total** | **8,786** | **88,576** | [11. (Loss)/Profit for the Period](index=9&type=section&id=11.%20%E6%9C%9F%E5%85%A7%EF%BC%88%E虧%E6%90%8D%EF%BC%89%E2%88%95%E6%BA%A2%E5%88%A9) This section provides the main components of the loss/profit for the period, including depreciation and amortization, capitalized inventory, employee benefit expenses, and a detailed breakdown of cost of sales Total Depreciation and Amortization | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 343,194 | 380,536 | | Depreciation of right-of-use assets | 19,929 | 16,908 | | Amortization of intangible assets | 35,706 | 35,465 | | **Total Depreciation and Amortization** | **398,829** | **432,909** | Employee Benefit Expenses | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Salaries, wages and benefits | 434,031 | 403,875 | | Contributions to retirement benefit schemes | 51,105 | 53,047 | | **Total Staff Costs** | **485,136** | **456,922** | Composition of Cost of Sales | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of inventories recognized as expense | 28,778,386 | 31,994,754 | | Direct operating expenses incurred for services provided | 13,499 | 8,847 | | **Total** | **28,791,885** | **32,003,601** | [12. Dividends](index=9&type=section&id=12.%20%E8%82%A1%E6%81%AF) This section states that no dividends were paid or proposed to the Company's shareholders during the current interim period and the prior interim period - No dividends were paid or proposed to the Company's shareholders during the current interim period and the prior interim period[23](index=23&type=chunk) [13. (Loss)/Profit Per Share](index=10&type=section&id=13.%20%E6%AF%8F%E8%82%A1%EF%BC%88%E虧%E6%90%8D%EF%BC%89%E2%88%95%E6%BA%A2%E5%88%A9) This section provides the data required to calculate basic and diluted loss/profit per share, showing a basic loss per share of RMB (0.06) cents (Loss)/Profit Per Share Calculation Data | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | (Loss)/Profit for the period attributable to owners of the Company used for calculating basic and diluted (loss)/profit per share | (9,900) | 77,442 | | Weighted average number of ordinary shares for calculating basic and diluted (loss)/profit per share (thousand shares) | 17,895,580 | 17,895,580 | [14. Trade and Bills Receivables](index=10&type=section&id=14.%20%E6%87%89%E6%94%B6%E8%B2%BF%E6%98%93%E6%AC%BE%E9%A0%85%E5%8F%8A%E6%87%89%E6%94%B6%E7%A5%A8%E6%93%9A) This section discloses the Group's trade and bills receivables as of June 30, 2025, and their aging analysis, showing a decrease in total trade receivables, with receivables within one year accounting for the largest proportion Total Trade and Bills Receivables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables | 100,531 | 126,637 | | Less: Provision for credit losses | (41,214) | (42,382) | | **Net Trade Receivables** | **59,317** | **84,255** | | Bills receivables | 1,963 | 1,332 | | **Total Trade and Bills Receivables** | **61,280** | **85,587** | Aging Analysis of Trade and Bills Receivables | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 year | 35,733 | 66,286 | | Over 1 year but within 2 years | 7,491 | 1,245 | | Over 2 years | 18,056 | 18,056 | | **Total** | **61,280** | **85,587** | [15. Trade Payables](index=11&type=section&id=15.%20%E6%87%89%E4%BB%98%E8%B2%BF%E6%98%93%E6%AC%BE%E9%A0%85) This section discloses the Group's aging analysis of trade payables as of June 30, 2025, showing a significant increase in payables within one year, reflecting changes in working capital management or procurement activities Aging Analysis of Trade Payables | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 year | 4,640,482 | 2,440,717 | | Over 1 year but within 2 years | 15,191 | 12,958 | | Over 2 years but within 3 years | 1,313 | 1,215 | | Over 3 years | 1,990 | 1,969 | | **Total** | **4,658,976** | **2,456,859** | [Management Discussion and Analysis](index=12&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 management's discussion and analysis of the Group's financial condition and results of operations [Review of First Half Year Operations](index=12&type=section&id=%E4%B8%80%E3%80%81%E4%B8%8A%E5%8D%8A%E5%B9%B4%E5%B7%A5%E4%BD%9C%E5%9B%9E%E9%A1%A7) In the first half of 2025, the company overcame challenges to exceed expectations in core indicators, maintaining a "stable yet progressive, quality and efficiency improving" operational trend - In the first half of the year, the company overcame challenges such as tight raw material supply and continuously declining copper concentrate processing fees, exceeding expectations in core indicators like main product output, resource assurance, cost control, and operating efficiency[32](index=32&type=chunk) 2025 First Half Year Main Product Output and Year-on-Year Change | Product | 2025 H1 Output | YoY Change | | :--- | :--- | :--- | | Mine Copper | Approx. 9,700 tonnes | Increase approx. 17.44% | | Cathode Copper | Approx. 343,200 tonnes | Decrease approx. 18.57% | | Precious Metal Products | Approx. 311.23 tonnes | Decrease approx. 0.87% | | Chemical Products | Approx. 1,355,600 tonnes | Increase approx. 13.36% | | Iron Concentrate | Approx. 109,300 tonnes | Increase approx. 27.00% | | Molybdenum Concentrate | Approx. 19.90 tonnes | Decrease approx. 10.12% | [Seizing Opportunities for Stable and Increased Production, Deeply Activating Development Momentum](index=12&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E6%90%B6%E6%8A%93%E6%A9%9F%E9%81%87%E7%A9%A9%E7%94%A2%E5%A2%9E%E7%94%A2%EF%BC%8C%E7%99%BC%E5%B1%95%E5%8B%95%E8%83%BD%E6%B7%B1%E5%BA%A6%E6%BF%80%E6%B4%BB) The company seized opportunities from high market prices for key products, boosting production to achieve stable and increased output, with several products exceeding planned targets - Seized opportunities from high market prices for copper, gold, silver, and sulfuric acid products, boosting production to achieve stable and increased output[33](index=33&type=chunk) - Gold, silver, sulfuric acid, mine copper, and iron concentrate production exceeded planned targets[33](index=33&type=chunk) [Addressing Losses and Overcoming Difficulties with Both Symptoms and Root Causes, Continuously Improving Operational Quality](index=13&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%E6%B2%BB%E虧%E8%84%AB%E5%9B%B0%E6%A8%99%E6%9C%AC%E5%85%BC%E6%B2%BB%EF%BC%8C%E7%B6%93%E7%87%9F%E8%B3%AA%E9%87%8F%E6%8C%81%E7%BA%8C%E6%94%B9%E5%96%84) The Group significantly improved operational quality by enhancing efficiency, strengthening process control, and implementing cost reduction measures, leading to increased crude copper output and improved recovery rates - Smelters and Yangxin Hongsheng Copper Co., Ltd. ("Yangxin Hongsheng") leveraged their respective advantages and collaborated to organize high-load production, improving overall operational efficiency, with crude copper output increasing by **9%** year-on-year[34](index=34&type=chunk) - Through strengthened process control, the comprehensive copper recovery rate at both plants increased by **0.18 percentage points** compared to the previous year[34](index=34&type=chunk) - Tonglüshan Mine, Fengshan Copper Mine, and Tongshankou Mine strengthened control over the "three rates" in mining, reducing unit production costs by **16%**, **5%**, and **8%** respectively year-on-year[34](index=34&type=chunk) - Yangxin Hongsheng's unit variable costs for cathode copper and sulfuric acid decreased by **17%** and **20%** respectively against budget targets; the smelter's unit variable cost for sulfuric acid decreased by **6%** against budget targets; and the precious metals branch's unit variable cost for anode mud decreased by **10%** against budget targets[34](index=34&type=chunk) [Dual Focus on Increasing Reserves and Production, Effectively Enhancing Resource Assurance](index=13&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%E5%A2%9E%E5%84%B2%E4%B8%8A%E7%94%A2%E9%9B%99%E5%90%91%E7%99%BC%E5%8A%9B%EF%BC%8C%E8%B3%87%E6%BA%90%E4%BF%9D%E9%9A%9C%E6%9C%89%E6%95%88%E5%A2%9E%E5%BC%B7) The company simultaneously focused on releasing mine capacity and increasing exploration and reserves, effectively enhancing mineral resource assurance through large-panel mechanized mining, optimizing mining methods, and deep exploration - Tonglüshan Mine implemented large-panel mechanized mining, increasing mining capacity to **400 tonnes per day**, and completed the main shaft hoisting system upgrade, increasing hoisting capacity by **10%** compared to design values[35](index=35&type=chunk) - In the first half of the year, a total of **16,811 meters** of production exploration was completed, adding **470,000 tonnes** of copper ore, achieving **117%** of the annual plan[36](index=36&type=chunk) - Implemented deep exploration on the northern edge of Fengshan Copper Mine, predicting an additional **2.84 million tonnes** of copper ore and **25,300 tonnes** of copper metal; advanced peripheral exploration of Xinjiang Sarike Copper Mine, estimating an additional **3.31 million tonnes** of copper ore and **12,500 tonnes** of copper metal in the southern ore belt[36](index=36&type=chunk) [Technology-Driven Breakthrough in New Materials, Accelerating Cultivation of Innovation Momentum](index=14&type=section&id=%EF%BC%88%E5%9B%9B%EF%BC%89%E7%A7%91%E6%8A%80%E9%A9%85%E5%8B%95%E6%96%B0%E6%9D%90%E6%96%99%E7%A0%B4%E5%B1%80%EF%BC%8C%E5%88%B5%E6%96%B0%E5%8B%95%E8%83%BD%E5%8A%A0%E9%80%9F%E5%9F%B9%E8%82%B2) The Group made progress in technological innovation, including completing kilogram-scale verification tests for 5N grade gold and silver, determining the preparation process for 3N selenium, and launching trial operation of the Tongshankou Mine integrated control platform - Completed kilogram-scale verification tests for **5N grade gold and silver**, successfully establishing the preparation process for high-purity gold and silver products[37](index=37&type=chunk) - Determined the preparation process for **3N selenium**, completed the design of the 3N selenium preparation project, and is currently undertaking on-site construction[37](index=37&type=chunk) - The Tongshankou Mine integrated control platform was launched for trial operation, and pilot construction of intelligent equipment operation and maintenance systems was carried out at the headquarters and some plants/mines[37](index=37&type=chunk) - Commissioned the nation's first roller-cutter rock tunneling machine at Tongshankou Mine, filling a gap in China's non-full-face hard rock tunneling equipment field[37](index=37&type=chunk) [Solidifying the Bottom Line of Safety and Compliance, Continuously Strengthening the Foundation for Development](index=15&type=section&id=%EF%BC%88%E4%BA%94%EF%BC%89%E7%AF%89%E7%89%A2%E5%AE%89%E5%85%A8%E5%90%88%E8%A6%8F%E5%BA%95%E7%B7%9A%EF%BC%8C%E7%99%BC%E5%B1%95%E6%A0%B9%E5%9F%BA%E6%8C%81%E7%BA%8C%E5%A0%8E%E5%AF%A6) The company achieved "zero" fatalities in production safety and zero occupational diseases, with a 50% reduction in injury accidents, and met environmental compliance targets, while continuously improving its legal compliance management system - Achieved "zero" fatalities in production safety, zero occupational diseases, and a **50%** reduction in injury accidents year-on-year in the first half[38](index=38&type=chunk) - Achieved targets for sudden environmental incidents and environmental penalties in the first half, with major pollutant emissions around **30%** of annual control targets[38](index=38&type=chunk) - Conducted **79** compliance inspections in the first half, rectifying **19** non-compliant issues in procurement, sales, and other segments[39](index=39&type=chunk) - The company faces challenges such as the need to enhance resource assurance, an unstable foundation for loss reduction (affected by continuously low copper concentrate processing fees), and delays in project investment plan implementation[39](index=39&type=chunk) [Second Half Year Work Plan](index=16&type=section&id=%E4%B8%8B%E5%8D%8A%E5%B9%B4%E5%B7%A5%E4%BD%9C%E9%83%A8%E7%BD%B2) Facing complex international situations and market pressures, the company will strive to win the battle against losses and exceed loss reduction targets, guided by high-quality development principles - In the second half of the year, the international situation is complex and volatile, the global copper concentrate supply gap is expanding, import processing fees remain low, and there is increased likelihood of downward pressure on main product prices, making overall operational challenges significantly greater than in the first half[40](index=40&type=chunk) - The company will deeply understand the high-quality development principle of "effective operations, growth potential, and development value," striving to exceed loss reduction targets[40](index=40&type=chunk) [Winning the Battle Against Losses and Overcoming Difficulties, Ensuring Achievement of Annual Loss Reduction Targets](index=16&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E6%89%93%E8%B4%8F%E6%B2%BB%E虧%E8%84%AB%E5%9B%B0%E7%A1%AC%E4%BB%97%EF%BC%8C%E7%A2%BA%E4%BF%9D%E5%85%A8%E5%B9%B4%E6%B8%9B%E虧%E7%9B%AE%E6%A8%99%E9%81%94%E6%88%90) In the second half, the company will ensure the achievement of annual loss reduction targets through stable and increased production, deep excavation of cost reduction and efficiency improvement, precise judgment to seize opportunities, and activating existing assets to release value - Mining units should seize the favorable opportunity of high metal prices, strengthen exploration and prospecting, coordinate permit processing, and stably increase production to exceed planned output targets[40](index=40&type=chunk) - Smelting units should ensure balanced supply, production, and sales, strengthen preventive inspections and operational maintenance of key and critical equipment, ensuring high operating and load rates[40](index=40&type=chunk) - Consolidate the positive trend of cost reduction, further tightening and implementing cost control responsibilities across all personnel, elements, and processes, focusing on optimizing quota standards for new technologies and equipment, precise energy consumption control, and reducing repair costs[41](index=41&type=chunk) - Both plants should dynamically calculate the breakeven point for smelting efficiency, striving for overproduction and quick sales at high prices, and vigorously push for the implementation of decision-making projects to ensure early production and benefits from project investments[41](index=41&type=chunk) - Strengthen policy tracking and research, actively seek various subsidies and special policy funds to be implemented and realized, strictly control and reduce the scale of outsourced business, and improve internal resource coordination efficiency and effectiveness[42](index=42&type=chunk) [Deepening Actions to Increase Reserves and Production, Solidifying the Foundation of Resource Assurance](index=17&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%E6%B7%B1%E5%8C%96%E5%A2%9E%E5%84%B2%E4%B8%8A%E7%94%A2%E8%A1%8C%E5%8B%95%EF%BC%8C%E7%AF%89%E7%89%A2%E8%B3%87%E6%BA%90%E4%BF%9D%E9%9A%9C%E6%A0%B9%E5%9F%BA) The company will accelerate the implementation of key resource projects to maximize mine capacity and comprehensively enhance resource assurance capabilities through maintenance optimization, equipment maintenance, mining method improvements, and expanding raw material acquisition channels - Accelerate the implementation of resource projects such as deep exploration of Tonglüshan copper-iron mine below -800 meters, expansion of Sarike copper mine's northern section, and supplementary detailed exploration of Fengshan copper mine below -550 meters[43](index=43&type=chunk) - Tonglüshan Mine will coordinate maintenance work, accelerate underground infrastructure progress, and vigorously carry out recovery of residual ore resources in pillars[43](index=43&type=chunk) - Expand resource acquisition channels, intensify domestic mine contract fulfillment and market development, stabilize the procurement volume of gold-bearing high-sulfur concentrate for Yangxin Hongsheng, and strive to add 1-2 local mining enterprises and anode plate suppliers, increasing the proportion of domestic mine procurement for smelters to over **22%**[44](index=44&type=chunk) [Accelerating Technology Empowerment for New Materials, Cultivating and Strengthening Development Momentum](index=18&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%E6%8F%90%E9%80%9F%E7%A7%91%E6%8A%80%E8%B3%A6%E8%83%BD%E6%96%B0%E6%9D%90%E6%96%99%EF%BC%8C%E5%9F%B9%E8%82%B2%E5%A3%AF%E5%A4%A7%E7%99%BC%E5%B1%95%E5%8B%95%E8%83%BD) The company will lead with technological innovation to drive industrial transformation and upgrading towards high-end, intelligent, and green development, accelerating new material projects, building intelligent factory benchmarks, and strengthening innovation incentive mechanisms to attract and cultivate highly skilled talents - The precious metals branch should accelerate technical research on precious metal recycling from copper anode mud treatment systems, speed up the construction and commissioning of the **3N selenium** production line, aiming to achieve an output value of **RMB 10 million** within the year[45](index=45&type=chunk) - Advance the construction of Yangxin Hongsheng's "dark factory," completing the application of slag selection and batching process scenarios within the year; accelerate the progress of the smelter's intelligent transformation phase two, completing the upgrade and iteration of the smart operation center within the year[45](index=45&type=chunk) - Fully implement the "Science and Technology Achievement Award Management Measures," explore new talent introduction models such as headhunting recommendations, and recruit mid-to-high-level professional and technical talents[46](index=46&type=chunk) [Deepening Reform Efforts, Activating Internal Development Momentum](index=19&type=section&id=%EF%BC%88%E5%9B%9B%EF%BC%89%E6%B7%B1%E5%8C%96%E6%94%B9%E9%9D%A9%E6%94%BB%E5%A0%85%EF%BC%8C%E6%BF%80%E6%B4%BB%E7%99%BC%E5%B1%95%E5%85%A7%E7%94%9F%E5%8B%95%E5%8A%9B) The company will activate internal development momentum by improving incentive and restraint mechanisms, deepening the "three systems" reform, promoting rigid application of assessment results, improving management personnel mechanisms, and strengthening position management - Deepen the implementation of new operational responsibility systems for all levels of management, emphasizing performance contributions, strengthening incentives and restraints, and reasonably widening income gaps[47](index=47&type=chunk) - Deepen the "three systems" reform, promote rigid application of assessment results, improve management personnel mechanisms; further strengthen position management, implement differentiated staffing, and employ multiple measures to select outstanding talents[47](index=47&type=chunk) [Strengthening Risk Prevention and Control Management, Strictly Adhering to the Bottom Line of Compliant Operations](index=19&type=section&id=%EF%BC%88%E4%BA%94%EF%BC%89%E5%BC%B7%E5%8C%96%E9%A2%A8%E9%9A%AA%E9%98%B2%E6%8E%A7%E7%AE%A1%E7%90%86%EF%BC%8C%E5%9A%B4%E5%AE%88%E5%90%88%E8%A6%8F%E9%81%8B%E7%87%9F%E5%BA%95%E7%B7%9A) The company will strictly implement regulatory requirements and internal control systems, building a robust risk defense line with rigid constraints and enhancing prevention and control effectiveness with precise management, providing solid assurance for the company's high-quality development - Prevent market operational risks: optimize the export layout of cathode copper and sulfuric acid, strictly control risks related to futures hedging, and Yangxin Hongsheng should continue to work hard to obtain processing trade qualifications[48](index=48&type=chunk) - Prevent safety and environmental risks: closely monitor key areas such as tailings dams, open-pit slopes, smelting, construction, equipment safety, and fire protection, strictly investigate and rectify safety hazards, and promote dynamic elimination of hazards[48](index=48&type=chunk) - Prevent compliance management risks: deepen the construction of a full-level compliance system, establish a normalized working mechanism for dynamic updates of laws and regulations and identification and interpretation of compliance obligations[48](index=48&type=chunk) - Prevent quality management risks: improve a market-oriented quality demand system, solidify the foundation of standardized management, strengthen the application of measurement data, and enhance closed-loop management, responsibility implementation, and target control capabilities[49](index=49&type=chunk) - Strengthen organizational assurance: consolidate responsibility chains, strengthen assessment incentives, and build synergistic efforts to ensure high-quality completion of annual targets and tasks[49](index=49&type=chunk) [Safety and Environmental Protection Work Status](index=20&type=section&id=%E5%AE%89%E5%85%A8%E7%92%B0%E4%BF%9D%E5%B7%A5%E4%BD%9C%E6%83%85%E6%B3%81) This section reports on the Group's safety and environmental protection initiatives and performance [Rectification of Central Environmental Protection Inspection](index=20&type=section&id=%E4%B8%AD%E5%A4%AE%E7%92%B0%E4%BF%9D%E7%9D%A3%E5%AF%9F%E6%95%B4%E6%94%B9%E6%83%85%E6%B3%81) All rectification measures from the company's central environmental protection inspection were completed and verified by the end of 2024, receiving high praise from the Ministry of Ecology and Environment during an on-site review in February 2025 - All rectification measures from the company's central environmental protection inspection were completed and verified by the end of **2024**[50](index=50&type=chunk) - In February **2025**, the Ministry of Ecology and Environment conducted an on-site review of the company's rectification of typical environmental inspection cases, giving high praise[50](index=50&type=chunk) [Safety and Environmental Protection Work Status in the First Half of 2025](index=20&type=section&id=%E4%BA%8C%E9%9B%B6%E4%BA%8C%E4%BA%94%E5%B9%B4%E4%B8%8A%E5%8D%8A%E5%B9%B4%E5%AE%89%E5%85%A8%E7%92%B0%E4%BF%9D%E5%B7%A5%E4%BD%9C%E6%83%85%E6%B3%81) In the first half of the year, the company continuously strengthened its safety system and standardization, achieving zero production safety fatalities and zero sudden environmental incidents, with all safety and environmental binding indicators met - In the first half of the year, the company continuously strengthened its safety system and standardization, achieving **zero** production safety fatalities and **zero** sudden environmental incidents, and received no environmental administrative penalties[51](index=51&type=chunk) - Consolidated primary responsibility chains, with the company signing safety production target responsibility letters with each production unit, revising the headquarters department's safety and environmental responsibility清单, and incorporating all-staff safety and environmental responsibilities into monthly performance assessments[52](index=52&type=chunk) - Focused on fundamental improvements, revised **8** systems including the "Management Measures for Investigation and Rectification of Major Accident Hazards," reported and received over **236** accident hazards in the first half, and completed the closed-loop rectification of **28** major accident hazards[53](index=53&type=chunk) - Intelligent mine construction and technology-driven safety and environmental protection achieved phased results, with **111** key intelligent construction projects, **67** of which have been completed, with a cumulative investment of **RMB 146 million**[54](index=54&type=chunk) - Basic management reached a new level, completing the underground mining safety permit application for Tongshankou Mine **40 days** ahead of schedule, fully implementing the three-level safety officer system in mines, with **27** three-level safety officers and **79** machine-level safety officers[55](index=55&type=chunk) - Focused on cultural leadership, conducted **4,208** safety warning education trainings, **4,533** online trainings on resumption of work and production, with **98%** participation rate in all-staff hazard identification[56](index=56&type=chunk) [Financial Review](index=24&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) This section summarizes the Group's main changes in revenue, gross profit, and finance costs for the first half of 2025 and their reasons Key Financial Indicators Change | Indicator | 2025 H1 | 2024 H1 | Change Rate | | :--- | :--- | :--- | :--- | | Revenue | Approx. RMB 29,306,100,000 | Approx. RMB 32,825,163,000 | Decrease 10.72% | | Gross Profit | Approx. RMB 514,215,000 | Approx. RMB 821,562,000 | Decrease 37.41% | | Finance Costs | Approx. RMB 235,240,000 | Approx. RMB 257,744,000 | Decrease 8.73% | - Revenue decreased primarily due to the concentrated and accelerated release of smelting capacity domestically and internationally, coupled with tight copper concentrate supply, leading to continuously low smelting processing fees, and reduced product output[57](index=57&type=chunk) - Gross profit decreased primarily due to reduced revenue and narrowed profit margins[57](index=57&type=chunk) - Finance expenses decreased primarily due to lower bank loan interest rates year-on-year[57](index=57&type=chunk) [Other Information](index=24&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) This section provides other relevant information about the Group's operations and governance [Details of Material Acquisitions and Disposals](index=24&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E7%9A%84%E8%A9%B3%E6%83%85) During the period ended June 30, 2025, the Group had no material investments, acquisitions, or disposals - During the period ended June 30, 2025, the Group had no material investments[58](index=58&type=chunk) [Performance and Prospects of Material Investments](index=24&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E7%9A%84%E8%A1%A8%E7%8F%BE%E5%92%8C%E5%89%8D%E6%99%AF) In the first half of 2025, the company primarily invested in non-ferrous metal resource development, mine digitalization and intelligent construction, optimization of smelting production processes, and research and industrialization of high-value-added products, aiming to enhance mineral resource assurance, total factor productivity, and product added value - In the first half of 2025, the company primarily invested in non-ferrous metal resource development, mine digitalization and intelligent construction, optimization of smelting production processes, and research and industrialization of high-value-added products[59](index=59&type=chunk) - Investment objectives include enhancing mineral resource assurance, total factor productivity, and inherent safety levels of mines, promoting the transformation of traditional industries towards the mid-to-high end of the industrial chain, and extending the precious metal industrial chain and researching and developing new materials[59](index=59&type=chunk) [Capital Structure, Liquidity and Financial Resources](index=25&type=section&id=%E8%B3%87%E6%9C%AC%E6%9E%B6%E6%A7%8B%E3%80%81%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) As of June 30, 2025, the Group's restricted bank deposits, cash, and bank balances were approximately RMB 1.882 billion, with a current ratio of 1.36 and a gearing ratio of 503.25%, an increase from the end of 2024, mainly due to increased capital tied up in inventories as Yangxin Hongsheng resumed production Liquidity and Financial Resources Indicators | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Restricted bank deposits, cash and bank balances | Approx. RMB 1,881,791,000 | Approx. RMB 1,535,250,000 | | Current assets | Approx. RMB 18,641,785,000 | Approx. RMB 15,445,467,000 | | Current liabilities | Approx. RMB 13,663,651,000 | Approx. RMB 12,327,942,000 | | Current ratio | 1.36 | 1.25 | | Net debt | Approx. RMB 15,468,388,000 | Approx. RMB 14,841,875,000 | | Equity attributable to owners of the Company | Approx. RMB 3,073,711,000 | Approx. RMB 3,083,611,000 | | Gearing ratio | 503.25% | 481.31% | - The increase in gearing ratio was mainly due to the impact of increased capital tied up in inventories as Yangxin Hongsheng resumed production at the beginning of the year[62](index=62&type=chunk) [Borrowings](index=25&type=section&id=%E5%80%9F%E6%AC%BE) As of June 30, 2025, the Group's total debt was approximately RMB 17.203 billion, with most borrowings denominated in RMB and bearing fixed interest rates, and no derivative financial instruments used to hedge interest rate risk Total Borrowings and Composition | Item | June 30, 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Total debt (including non-current and current bank and other borrowings and bills payable) | Approx. 17,202,511 | Approx. 16,253,366 | | Bank and other borrowings (due within one year) | Approx. 7,551,798 | Approx. 8,130,983 | | Bank and other borrowings (due after one year) | Approx. 8,406,701 | Approx. 6,899,371 | - Most of the Group's bank and other borrowings are denominated in Renminbi and bear fixed interest rates[63](index=63&type=chunk) - The Group did not use derivative financial instruments to hedge its interest rate risk during the period[63](index=63&type=chunk) [Employees and Remuneration Policy](index=25&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group had 5,177 employees, with total staff costs of approximately RMB 485 million, and remuneration reviewed periodically based on market terms, individual qualifications, and performance Employee Count and Costs | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Number of employees | 5,177 | 5,551 | | Total staff costs | Approx. RMB 485,136,000 | Approx. RMB 456,922,000 | - The remuneration package is generally determined based on market terms, individual qualifications, and performance, and is reviewed periodically based on individual merit and other market factors[64](index=64&type=chunk) [Foreign Exchange Risk](index=26&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) The Group faces foreign exchange risk primarily involving the US dollar due to international procurements and borrowings, managed by regularly reviewing net foreign exchange exposure and potentially using derivative financial instruments - The Group faces foreign exchange risk primarily involving the US dollar, as certain international procurements and borrowings are denominated in US dollars[65](index=65&type=chunk) - The Group manages foreign exchange risk by regularly reviewing its net foreign exchange exposure and may enter into derivative financial instruments such as currency forward contracts, currency swap contracts, and currency option contracts[65](index=65&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=26&type=section&id=%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E3%80%81%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%90%88%E7%87%9F%E5%85%AC%E5%8F%B8%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E4%BA%8B%E9%A0%85) For the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures[66](index=66&type=chunk) [Contingent Liabilities](index=26&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had no contingent liabilities - As of June 30, 2025, the Group had no contingent liabilities[67](index=67&type=chunk) [Pledge of Assets](index=26&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, other deposits of approximately RMB 633 million were placed with futures exchanges and certain financial institutions as collateral for commodity derivative contracts Pledged Assets | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Other deposits (as collateral for commodity derivative contracts) | Approx. 632,674 | Approx. 531,260 | [Purchase, Sale or Redemption of Listed Securities](index=26&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%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries redeemed, purchased, or sold any of the Company's listed securities - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries redeemed, purchased, or sold any of the Company's listed securities[69](index=69&type=chunk) [Interim Dividend](index=26&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025 - The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025[70](index=70&type=chunk) [Share Capital](index=26&type=section&id=%E8%82%A1%E6%9C%AC) As of June 30, 2025, the Company's total issued and fully paid ordinary shares were 17,895,579,706 shares, with a par value of HKD 0.05 per share, and total issued share capital of approximately RMB 728 million Share Capital Details | Item | June 30, 2025 | | :--- | :--- | | Total issued and fully paid ordinary shares | 17,895,579,706 shares | | Par value per share | HKD 0.05 | | Total issued share capital | Approx. RMB 727,893,000 | [Audit Committee and Independent Auditor Review](index=27&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83%E5%8F%8A%E7%8D%A8%E7%AB%8B%E6%A0%B8%E6%95%B8%E5%B8%AB%E5%AF%A9%E9%96%B1) The Company's Audit Committee, comprising three independent non-executive directors, oversees financial reporting and internal controls, and the independent auditor, BDO Limited, has reviewed the interim financial statements - The Audit Committee, comprising three independent non-executive directors, is responsible for reviewing and overseeing the Group's financial reporting process and internal controls[72](index=72&type=chunk) - The independent auditor, BDO Limited, has reviewed the Group's condensed consolidated interim financial statements for the six months ended June 30, 2025[72](index=72&type=chunk) [Standard Code for Securities Transactions by Directors](index=27&type=section&id=%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E4%B9%8B%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The Company has adopted the Model Code for directors' securities transactions, and all directors confirmed compliance for the six months ended June 30, 2025 - The Company has adopted the Model Code set out in Appendix 10 of the Listing Rules as the standard for directors' securities transactions[73](index=73&type=chunk) - All directors have confirmed their compliance with the required standards of the Model Code for the six months ended June 30, 2025[73](index=73&type=chunk) [Compliance with Corporate Governance Code](index=27&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) Throughout the six months ended June 30, 2025, the Company has complied with the code provisions of the Corporate Governance Code set out in Appendix 14 of the Listing Rules - Throughout the six months ended June 30, 2025, the Company has complied with the code provisions of the Corporate Governance Code set out in Appendix 14 of the Listing Rules[74](index=74&type=chunk) [Continuing Connected Transactions and Revision of Annual Caps for Continuing Connected Transactions](index=27&type=section&id=%E6%8C%81%E7%BA%8C%E9%97%9C%E9%80%A3%E4%BA%A4%E6%98%93%E5%8F%8A%E4%BF%AE%E8%A8%82%E6%8C%81%E7%BA%8C%E9%97%9C%E9%80%A3%E4%BA%A4%E6%98%93%E4%B9%8B%E5%B9%B4%E5%BA%A6%E4%B8%8A%E9%99%90) This section discloses revisions to annual caps for several continuing connected transactions between the company and China Nonferrous Metals Mining Group and the parent group, primarily involving service provision and product sales, due to business growth and one-off large orders - The annual cap for the China Nonferrous Metals Mining Services Framework Agreement for the year ending December 31, 2025, has been revised to **RMB 34,500,000**, due to an expected decrease in transaction amounts[75](index=75&type=chunk) - The annual cap for the China Nonferrous Metals Mining Group Sales Framework Agreement for the year ending December 31, 2025, has been revised to **RMB 11,000,000**, due to a one-off cathode copper order exceeding the original cap[78](index=78&type=chunk) - The annual cap for the Parent Group Services Framework Agreement for the year ending December 31, 2025, has been revised to **RMB 10,000,000**, considering the Group's business growth and undertaking of new businesses[80](index=80&type=chunk) [Publication of this Performance Announcement and Interim Report](index=29&type=section&id=%E5%88%8A%E7%99%BC%E6%9C%AC%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%91%8A%E5%8F%8A%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) This section provides information on the publication channels for this performance announcement and interim report, including the websites of The Stock Exchange of Hong Kong Limited and the Company - This performance announcement is published on the website of The Stock Exchange of Hong Kong Limited www.hkexnews.hk and the Company's website www.hk661.com[83](index=83&type=chunk) - The interim report for the six months ended June 30, 2025, will be dispatched to the Company's shareholders[83](index=83&type=chunk) [Acknowledgements](index=29&type=section&id=%E8%87%B4%E8%AC%9D) The Company Chairman expresses sincere gratitude to all colleagues, management, and staff for their contributions to the Group's continuous development, and to shareholders, suppliers, customers, and business partners for their unwavering support - The Company Chairman expresses sincere gratitude to all colleagues, management, staff, shareholders, suppliers, customers, and business partners[84](index=84&type=chunk) [Board of Directors](index=29&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83) This section lists the members of the Board of Directors as of the announcement date (August 29, 2025), including three executive directors and three independent non-executive directors - As of August 29, 2025, the Board of Directors includes three executive directors: Mr. Xiao Shuxin, Mr. Zhang Jinzhong, and Ms. Zhang Aijun; and three independent non-executive directors: Ms. Liu Fang, Mr. Wang Qihong, and Mr. Kong Hua[85](index=85&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示 概 不 就 因 本 公 告 全 部 或 任 何 部 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。 Forward Fashion (International) Holdings Company Limited 尚 晉（國 際）控股有限公司 （股份代號：2528） （於開曼群島註冊成立的有限公司） 截 至2025年6月30日止六個月 之未經審核中期業績 尚 晉（國 際）控 股 有 限 公 司（「本公司」）董 事 會（「董事會」）欣 然 宣 佈 本 公 司 及 其 附 屬 公 司（「本集團」）截 至2025年6月30日止六個月之未經審核綜合財務報表連同 截 至2024年6月30日 止 六 個 月 之 比 較 數 字。財 務 資 料 已 獲 董 事 會 批 准。 | 財務摘要 | | | | | --- | --- | --- | --- | | | | 截 至2025年 | 截 至2 ...

嘉進投資國際有限公司 * (Incorporated in Bermuda with limited liability) （於百慕達註冊成立之有限公司） (Stock Code 股份代號：00310) INTERIM RESULTS (UNAUDITED) FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2025 截至2025年6月30日止六個月期間之中期業績（未經審核） The Board of Prosperity Investment Holdings Limited (the "Company") hereby announces the unaudited consolidated results of the Company and its subsidiaries (collectively the "Group") for the six months period ended 30 June 2025. This condensed consolidated financial information has been reviewed by the Com ...