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 ...

[Condensed Consolidated Financial Statements](index=1&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, Jiujiuwang Food International Limited's profit significantly decreased, primarily due to the combined impact of reduced gross profit, lower selling and administrative expenses, and changes in net other income Profit or Loss Summary | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 162,533 | 181,556 | | Cost of sales | (124,591) | (127,397) | | Gross profit | 37,942 | 54,159 | | Other income, gains or (losses), net | 2,228 | (2,340) | | Selling expenses | (12,316) | (15,186) | | Administrative expenses | (16,522) | (18,345) | | Finance costs | (6,354) | (6,984) | | Profit before tax | 4,978 | 11,304 | | Tax | (897) | (3,482) | | Profit for the period | 4,081 | 7,822 | | Profit for the period attributable to owners of the Company | 4,081 | 7,822 | | Earnings per share attributable to owners of the Company (RMB cents) | 0.5 | 1.0 | - Profit for the period decreased by **47.95%** year-on-year, from **RMB 7.8 million** in 2024 to **RMB 4.1 million** in 2025[4](index=4&type=chunk)[6](index=6&type=chunk) - Basic and diluted earnings per share decreased from **RMB 1.0 cent** in 2024 to **RMB 0.5 cent** in 2025[6](index=6&type=chunk) [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's net current assets, total assets less current liabilities, and total equity all increased, reflecting a robust financial position Financial Position Summary | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **Assets** | | | | Non-current assets | 334,480 | 348,426 | | Current assets | 328,645 | 381,020 | | **Liabilities** | | | | Current liabilities | 65,299 | 199,548 | | Non-current liabilities | 196,509 | 133,060 | | **Equity** | | | | Total equity | 401,317 | 396,838 | | Net current assets | 263,346 | 181,472 | | Total assets less current liabilities | 597,826 | 529,898 | - Net current assets increased by **45.1%** from **RMB 181,472 thousand** as of December 31, 2024, to **RMB 263,346 thousand** as of June 30, 2025[7](index=7&type=chunk) - Current liabilities significantly decreased by **67.2%** from **RMB 199,548 thousand** as of December 31, 2024, to **RMB 65,299 thousand** as of June 30, 2025[7](index=7&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=4&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [1. Basis of Preparation](index=4&type=section&id=1.%20Basis%20of%20Preparation) The interim financial statements are prepared in accordance with Appendix 16 of the HKEX Listing Rules and HKAS 34, presented in RMB thousands, with accounting policies consistent with the 2024 annual financial statements, except for changes noted in Note 2 - The interim financial statements are prepared in accordance with Appendix 16 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 "Interim Financial Reporting"[8](index=8&type=chunk) - The statements are presented in **RMB thousands** and adopt the same accounting policies as the 2024 annual financial statements, with expected changes to be reflected in the 2025 annual financial statements[8](index=8&type=chunk)[9](index=9&type=chunk) [2. Application of Revised Hong Kong Financial Reporting Standards](index=4&type=section&id=2.%20Application%20of%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards) This interim period saw the first-time application of revised HKFRSs issued by the HKICPA, including HKAS 21 (Amendment) "Lack of Exchangeability", which had no material impact on the Group's financial position or performance - This interim period saw the first-time application of revised Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants, including HKAS 21 (Amendment) "Lack of Exchangeability"[10](index=10&type=chunk) - The application of these new standards had no material impact on the Group's financial position or performance[10](index=10&type=chunk) [3. Operating Segments](index=5&type=section&id=3.%20Operating%20Segments) The Group primarily operates a single segment, the sale of confectionery products, with all operations and non-current assets located in China, and despite a decline in total revenue, revenue from Asia excluding China increased - The Group currently operates a single operating segment, revenue from the sale of confectionery products, and therefore has no separately reportable segments[11](index=11&type=chunk) - The Group's operations and non-current assets are all located in China[12](index=12&type=chunk) Revenue by Geographical Region | Region | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | China | 148,058 | 160,805 | | Asia (excluding China) | 6,622 | 6,310 | | Europe | 5,289 | 10,609 | | Others | 2,564 | 3,832 | | **Total** | **162,533** | **181,556** | - Revenue from a single major customer A increased by **26.4%** to **RMB 42,984 thousand** in the first half of 2025, with its proportion of total sales rising from **16.1%** to **26.4%**[15](index=15&type=chunk) [4. Revenue](index=6&type=section&id=4.%20Revenue) The Group's total revenue decreased by **10.5%** year-on-year, primarily due to reduced sales of own-brand products, which was not offset by increased OEM product sales Revenue by Product Type | Product Type | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | OEM products | 65,232 | 57,318 | | Own-brand products - KUSA | 89,477 | 109,662 | | Own-brand products - LABULA | 6,325 | 11,837 | | Own-brand products - JIUJIUWANG | 1,499 | 2,739 | | **Total Revenue** | **162,533** | **181,556** | - Total revenue decreased by **10.5%** from **RMB 181,556 thousand** in 2024 to **RMB 162,533 thousand** in 2025[16](index=16&type=chunk) - OEM product revenue increased by **13.8%** year-on-year, while own-brand product (KUSA, LABULA, JIUJIUWANG) revenues all decreased[16](index=16&type=chunk) [5. Other Income, Gains or (Losses), Net](index=7&type=section&id=5.%20Other%20Income,%20Gains%20or%20(Losses),%20Net) Net other income, gains or (losses) for the period shifted from a net loss in 2024 to a net gain in 2025, mainly driven by reduced losses from sale and leaseback transactions and a reversal of expected credit losses on trade receivables Other Income, Gains or (Losses), Net | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Bank interest income | 126 | 123 | | Exchange gains | 102 | 443 | | Rental income | 414 | 63 | | Government grants | 232 | 86 | | Reversal of expected credit losses on trade receivables | 1,354 | – | | Loss from sale and leaseback transactions | – | (3,055) | | **Total** | **2,228** | **(2,340)** | - Net other income, gains or (losses) shifted from **RMB (2,340) thousand** in 2024 to **RMB 2,228 thousand** in 2025, primarily due to reduced losses from sale and leaseback transactions and a reversal of expected credit losses on trade receivables[17](index=17&type=chunk) [6. Finance Costs](index=7&type=section&id=6.%20Finance%20Costs) The Group's finance costs remained relatively stable during the reporting period, showing a slight decrease, primarily comprising interest expenses on bank borrowings and lease liabilities Finance Costs | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest expense on bank borrowings | 5,134 | 5,763 | | Interest expense on lease liabilities | 1,220 | 1,221 | | **Total** | **6,354** | **6,984** | - Finance costs decreased by **9.02%** from **RMB 6,984 thousand** in 2024 to **RMB 6,354 thousand** in 2025[18](index=18&type=chunk) [7. Profit Before Tax](index=7&type=section&id=7.%20Profit%20Before%20Tax) Profit before tax significantly decreased, primarily due to the combined impact of inventory costs, depreciation of property, plant and equipment, depreciation of right-of-use assets, and employee benefit expenses Profit Before Tax Components | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Inventory costs recognized as expenses | 117,779 | 126,170 | | Depreciation of property, plant and equipment | 10,443 | 8,524 | | Depreciation of right-of-use assets | 3,501 | 1,334 | | Employee benefit expenses (including directors' emoluments) | 12,510 | 18,557 | - Profit before tax decreased by **55.96%** from **RMB 11,304 thousand** in 2024 to **RMB 4,978 thousand** in 2025[4](index=4&type=chunk) [8. Tax](index=8&type=section&id=8.%20Tax) The Group's tax expense significantly decreased, mainly due to lower taxable profit, with Chinese subsidiaries subject to a 25% corporate income tax rate and no provision for taxable profit in Hong Kong Tax Expense | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | China corporate income tax | 897 | 3,482 | - Tax expense decreased by **74.2%** from **RMB 3,482 thousand** in 2024 to **RMB 897 thousand** in 2025[21](index=21&type=chunk) - Chinese subsidiaries are subject to a corporate income tax rate of **25%**, while no provision for profits tax was made in Hong Kong due to no estimated taxable profit[21](index=21&type=chunk)[22](index=22&type=chunk) [9. Dividends](index=8&type=section&id=9.%20Dividends) The Board of Directors decided not to declare any dividends for the six months ended June 30, 2025, consistent with the same period in 2024 - The Board of Directors does not recommend the payment of any dividend for the six months ended June 30, 2025 (2024: nil)[24](index=24&type=chunk) [10. Earnings Per Share Attributable to Owners of the Company](index=9&type=section&id=10.%20Earnings%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Company) Both basic and diluted earnings per share attributable to owners of the Company were **RMB 0.5 cent**, a decrease from the prior year, with basic and diluted earnings being identical due to the absence of potential dilutive ordinary shares Earnings Per Share Calculation Data | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit | 4,081 | 7,822 | | Weighted average number of ordinary shares (thousand shares) | 792,000 | 792,000 | | Basic and diluted earnings per share (RMB cents) | 0.5 | 1.0 | - Diluted earnings per share are the same as basic earnings per share due to the absence of potential dilutive ordinary shares[27](index=27&type=chunk) [11. Property, Plant and Equipment](index=9&type=section&id=11.%20Property,%20Plant%20and%20Equipment) As of June 30, 2025, the Group's property, plant and equipment carrying value slightly decreased, with some assets pledged as collateral for bank credit facilities, and no new acquisitions during the period - As of June 30, 2025, buildings and plant and machinery with a carrying value of approximately **RMB 137,653 thousand** were pledged as collateral for the Group's bank credit facilities (December 31, 2024: **RMB 143,905 thousand**)[28](index=28&type=chunk) - For the six months ended June 30, 2025, the Group did not incur any payments for the acquisition of property, plant and equipment (2024: **RMB 389 thousand**)[28](index=28&type=chunk) [12. Trade Receivables](index=9&type=section&id=12.%20Trade%20Receivables) The Group's trade receivables significantly increased, primarily concentrated within 30 days, while the provision for expected credit losses decreased, reflecting changes in accounts receivable management and collection Trade Receivables | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade receivables | 116,534 | 77,440 | | Less: Provision for expected credit losses | (8,854) | (10,208) | | **Net** | **107,680** | **67,232** | - Net trade receivables increased by **60.17%** from **RMB 67,232 thousand** as of December 31, 2024, to **RMB 107,680 thousand** as of June 30, 2025[29](index=29&type=chunk) Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 30 days | 47,721 | 10,443 | | 31 to 60 days | 15,577 | 11,882 | | 61 to 90 days | 14,830 | 8,048 | | 91 to 180 days | 17,103 | 31,552 | | 181 to 365 days | 12,449 | 5,307 | | **Total** | **107,680** | **67,232** | - The net provision for expected credit losses saw a reversal of **RMB 1,354 thousand** in the first half of 2025, reducing the year-end provision balance to **RMB 8,854 thousand**[31](index=31&type=chunk) [13. Prepayments and Other Receivables](index=11&type=section&id=13.%20Prepayments%20and%20Other%20Receivables) Total prepayments and other receivables significantly decreased, primarily due to a substantial reduction in prepayments for raw material purchases Prepayments and Other Receivables | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Prepayments | 60,681 | 122,641 | | Other receivables | 4,674 | 5,327 | | **Total** | **65,355** | **127,968** | - Total prepayments decreased by **50.5%** from **RMB 122,641 thousand** as of December 31, 2024, to **RMB 60,681 thousand** as of June 30, 2025[32](index=32&type=chunk) [14. Trade and Other Payables](index=11&type=section&id=14.%20Trade%20and%20Other%20Payables) Total trade and other payables significantly decreased, primarily due to a substantial reduction in amounts payable to a director Trade and Other Payables | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total trade payables | 1,511 | 3,637 | | Accrued expenses and other payables | 6,868 | 3,984 | | Amount due to a director | 4,865 | 40,866 | | **Total** | **13,244** | **48,487** | - Total trade and other payables decreased by **72.7%** from **RMB 48,487 thousand** as of December 31, 2024, to **RMB 13,244 thousand** as of June 30, 2025[34](index=34&type=chunk) - Amount due to a director significantly decreased from **RMB 40,866 thousand** to **RMB 4,865 thousand**[34](index=34&type=chunk) [15. Share Capital](index=12&type=section&id=15.%20Share%20Capital) The Company's share capital structure remained stable during the reporting period, with no changes in authorized share capital or issued and fully paid share capital Share Capital Structure | Item | June 30, 2025 (thousand shares/thousand USD) | December 31, 2024 (thousand shares/thousand USD) | | :--- | :--- | :--- | | Authorized share capital (number of shares) | 2,000,000 | 2,000,000 | | Authorized share capital (USD) | 200 | 200 | | Issued and fully paid share capital (number of shares) | 792,000 | 792,000 | | Issued and fully paid share capital (USD) | 80 | 80 | | Presented in condensed consolidated statement of financial position (RMB thousands) | 532 | 532 | - As of June 30, 2025, the Company's share capital structure showed no significant changes, with **792,000 thousand** issued shares, amounting to **RMB 532 thousand**[35](index=35&type=chunk) [16. Pledged Assets](index=12&type=section&id=16.%20Pledged%20Assets) A portion of the Group's assets, including buildings, plant and machinery, and right-of-use assets, has been pledged to banks as collateral for borrowings, with the total pledged value slightly decreasing Carrying Value of Pledged Assets | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Buildings | 102,594 | 104,773 | | Plant and machinery | 35,059 | 39,132 | | Right-of-use assets | 20,802 | 21,094 | | **Total** | **158,455** | **164,999** | - The total carrying value of pledged assets decreased from **RMB 164,999 thousand** as of December 31, 2024, to **RMB 158,455 thousand** as of June 30, 2025[37](index=37&type=chunk) [17. Significant Related Party Transactions](index=13&type=section&id=17.%20Significant%20Related%20Party%20Transactions) Key management personnel remuneration slightly increased, while the amount payable to a director significantly decreased, with this amount being unsecured, interest-free, and repayable on demand Key Management Personnel Remuneration | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Salaries, allowances and benefits in kind | 1,290 | 1,260 | | Retirement scheme contributions | 85 | 38 | | **Total** | **1,375** | **1,298** | - The amount due to a director (Mr Zheng Zhenzhong) decreased from **RMB 40,866 thousand** as of December 31, 2024, to **RMB 4,865 thousand** as of June 30, 2025[38](index=38&type=chunk) - The amount due to a director is unsecured, interest-free, and repayable on demand[38](index=38&type=chunk) [Management Discussion and Analysis](index=14&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review and Outlook](index=14&type=section&id=Business%20Review%20and%20Outlook) Jiujiuwang Food International Limited, a Chinese confectionery manufacturer, primarily produces and sells gum-based candies, pressed candies, aerated candies, and hard candies, with profit declining in the reporting period due to reduced gross profit, lower selling and administrative expenses, and changes in net other income - The Group is a confectionery manufacturer in China, producing and selling gum-based candies, pressed candies, aerated candies, and hard candies[39](index=39&type=chunk) - Group profit decreased from **RMB 7.8 million** in 2024 to **RMB 4.1 million** in 2025, primarily due to the net effect of reduced gross profit (lower own-brand product sales), changes in net other income, decreased selling expenses, and decreased administrative expenses[40](index=40&type=chunk) [Financial Review](index=14&type=section&id=Financial%20Review) The Group experienced a decline in both revenue and gross profit during the reporting period, mainly due to reduced sales of own-brand products, indicating overall profitability pressure despite controlled selling and administrative expenses - Revenue decreased by **10.5%** year-on-year to **RMB 162.5 million**, primarily due to reduced sales of own-brand products[41](index=41&type=chunk) - Gross profit decreased by **30.1%** year-on-year to **RMB 37.9 million**, with gross profit margin declining from **29.8%** to **23.3%**, mainly due to lower sales volume of own-brand products (which typically have higher gross margins than OEM products)[43](index=43&type=chunk) - Net other income and gains shifted from a net loss of **RMB 2.3 million** in 2024 to a net gain of **RMB 2.2 million** in 2025, primarily due to reduced losses from sale and leaseback transactions[44](index=44&type=chunk) - Selling expenses decreased by **19.1%** to **RMB 12.3 million**, mainly due to reduced marketing and promotion expenses[45](index=45&type=chunk) - Administrative expenses decreased by **11.5%** to **RMB 16.2 million**, primarily due to reduced travel expenses[46](index=46&type=chunk) - Income tax expense decreased to **RMB 0.9 million**, mainly due to lower taxable profit[47](index=47&type=chunk) - Finance costs remained stable at approximately **RMB 6.7 million**[48](index=48&type=chunk) - Profit for the period was **RMB 4.1 million**, a decrease from **RMB 7.8 million** in the same period last year[49](index=49&type=chunk) [Principal Risks and Uncertainties](index=16&type=section&id=Principal%20Risks%20and%20Uncertainties) The Group faces several key risks, including reliance on a few OEM customers, performance of third-party distributors, lack of long-term contracts, raw material price volatility, pandemic impacts, and risks of foodborne illness and product liability claims - A significant portion of revenue is derived from a few major OEM customers, posing customer concentration risk[50](index=50&type=chunk) - Reliance on third-party distributors for own-brand product sales means termination or non-renewal of distribution agreements could lead to a substantial decrease in sales[50](index=50&type=chunk) - The Group generally does not enter into long-term contracts or contracts specifying minimum purchase amounts with customers[50](index=50&type=chunk) - Fluctuations in raw material prices, availability, and quality could lead to production delays and increased cost of sales[54](index=54&type=chunk) - The business is susceptible to foodborne illness claims and product liability claims, posing potential reputational risks[54](index=54&type=chunk) [Future Plans for Material Investments and Capital Assets](index=17&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) As of June 30, 2025, the Group had no other material investment and capital asset plans - As of June 30, 2025, the Group had no other material investment and capital asset plans[51](index=51&type=chunk) [Liquidity and Financial Resources](index=17&type=section&id=Liquidity%20and%20Financial%20Resources) The Group's capital structure remained stable, with a decrease in cash and cash equivalents, but a significant reduction in the gearing ratio due to decreased bank borrowings and lease liabilities, indicating improved financial leverage. The Group continuously monitors credit risk and faces no significant foreign exchange risk - The Company's capital structure showed no significant changes during the reporting period[52](index=52&type=chunk) - Cash and cash equivalents decreased by approximately **8.7%** to **RMB 21.3 million**, primarily due to repayment of bank borrowings[53](index=53&type=chunk) - Total borrowings decreased to **RMB 225.8 million** (December 31, 2024: **RMB 255.2 million**)[54](index=54&type=chunk) - The gearing ratio decreased to approximately **60.8%** (December 31, 2024: approximately **70.2%**), mainly due to reduced bank borrowings and lease liabilities[57](index=57&type=chunk) - Pledged assets include right-of-use assets, buildings, and plant and machinery, with a total carrying value of **RMB 158,455 thousand**[56](index=56&type=chunk) - The Board of Directors does not recommend the declaration of dividends[58](index=58&type=chunk) - The Group has no material capital commitments, material acquisitions or disposals of subsidiaries, material investments, or contingent liabilities[60](index=60&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk) - The Group does not face significant exchange rate fluctuation risks and holds no foreign exchange contracts or other financial derivative instruments[64](index=64&type=chunk) - Credit risk primarily arises from trade receivables, other receivables, and cash and cash equivalents, managed through credit limits, monitoring procedures, and expected credit loss models[65](index=65&type=chunk)[66](index=66&type=chunk)[67](index=67&type=chunk)[68](index=68&type=chunk) [Employees and Remuneration Policies](index=20&type=section&id=Employees%20and%20Remuneration%20Policies) The Group's employee count slightly decreased, with remuneration policies based on market terms, individual performance, qualifications, and experience. The Group prioritizes employee training and maintains good working relationships - As of June 30, 2025, the Group had **385 employees** (December 31, 2024: **386 employees**)[70](index=70&type=chunk) - Employee remuneration is determined with reference to market terms and based on individual performance, qualifications, and experience; directors' remuneration is reviewed and determined by the Remuneration Committee[70](index=70&type=chunk) - The Group has adopted a share option scheme to incentivize employees, directors, and other participants[70](index=70&type=chunk) - The Group provides various training to employees, including internal professional development seminars and safety training programs[71](index=71&type=chunk) [Litigation](index=21&type=section&id=Litigation) As of June 30, 2025, the Group was not involved in any material litigation or arbitration - As of June 30, 2025, the Group was not involved in any material litigation or arbitration, nor were there any outstanding or threatened material litigations or claims[72](index=72&type=chunk) [Prospects](index=21&type=section&id=Prospects) The Group aims to achieve sustainable growth and strengthen its position as a Chinese confectionery manufacturer through capacity expansion, production line machinery replacement, enhanced e-commerce marketing and distribution networks, and continuous product development - The business objective is to achieve sustainable growth and consolidate its position as a confectionery manufacturer in China[73](index=73&type=chunk) - Planned strategies include: (i) capacity expansion; (ii) replacement of existing production line machinery; (iii) strengthening marketing and increasing sales through e-commerce channels, expanding the distribution network; and (iv) expanding and enhancing product offerings through continuous product development[73](index=73&type=chunk) - Emphasis will be placed on procuring and introducing new production lines, acquiring new equipment and machinery to replace existing ones, and striving to enhance product quality to meet consumer preferences[74](index=74&type=chunk) - Marketing companies will be engaged to promote brands, consolidate market position, enhance brand awareness, and increase sales and improve the distribution network through e-commerce channels[75](index=75&type=chunk) [Corporate Governance and Other Information](index=22&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Corporate Governance Practices](index=22&type=section&id=Corporate%20Governance%20Practices) The Company is committed to maintaining high corporate governance standards and complies with the Corporate Governance Code in Appendix 14 of the Listing Rules, with the exception of the Chairman and Chief Executive Officer being the same person, which deviates from Code Provision A.2.1 - The Company has adopted and complied with all applicable code provisions of the Corporate Governance Code set out in Appendix 14 of the Listing Rules during the period[77](index=77&type=chunk) - Mr Zheng Zhenzhong serves as both Chairman and Chief Executive Officer, deviating from Code Provision A.2.1 of the Corporate Governance Code, but the Board believes this arrangement is in the Group's best interest and has sufficient safeguards to ensure a balance of power[78](index=78&type=chunk) [Directors' Securities Transactions](index=22&type=section&id=Directors'%20Securities%20Transactions) The Company has adopted a code of conduct for directors' securities transactions no less exacting than that set out in Appendix 10 of the Listing Rules, and all directors confirmed compliance during the reporting period - The Company has adopted a code of conduct regarding directors' securities transactions, with terms no less exacting than the required standard of dealings set out in Appendix 10 of the Listing Rules[79](index=79&type=chunk) - All directors have confirmed compliance with the required standard of dealings and the Company's code of conduct throughout the review period[79](index=79&type=chunk) [Disclosure of Directors' Information Pursuant to Rule 13.51B(1) of the Listing Rules](index=23&type=section&id=Disclosure%20of%20Directors'%20Information%20Pursuant%20to%20Rule%2013.51B(1)%20of%20the%20Listing%20Rules) For the six months ended June 30, 2025, no changes in directors' information required disclosure under Rule 13.51B(1) of the Listing Rules - For the six months ended June 30, 2025, no changes in directors' information required disclosure under Rule 13.51B(1) of the Listing Rules[80](index=80&type=chunk) [Competing Business](index=23&type=section&id=Competing%20Business) The directors are unaware of any business or interest owned by any director, controlling shareholder, or their close associates that competes or may compete with the Group's business during the reporting period - The directors are unaware of any business or interest owned by any director, controlling shareholder, or their respective close associates that competes or may compete with the Group's business during the reporting period[81](index=81&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company](index=23&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company) As of June 30, 2025, Mr Zheng Guosi and Mr Zheng Zhenzhong each held a **72.75%** equity interest in the Company's ordinary shares, primarily through controlled corporations and parties acting in concert. They also held **100%** beneficial ownership in associated corporations Directors' and Chief Executive's Interests in the Company's Shares | Director Name | Capacity | Number of Ordinary Shares | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr Zheng Guosi | Interest in controlled corporation; interest held jointly with other persons | 576,179,908 | 72.75% | | Mr Zheng Zhenzhong | Interest in controlled corporation; interest held jointly with other persons | 576,179,908 | 72.75% | - Mr Zheng Guosi beneficially owns **25.46%** of the shares through Xiejia Limited, and Mr Zheng Zhenzhong beneficially owns **21.82%** of the shares through Jianeng International Limited[84](index=84&type=chunk) - Mr Zheng Zhenzhong, Mr Zheng Guosi, and Mr Zheng Guodian are parties acting in concert and are therefore deemed to have an interest in the shares held by each other[84](index=84&type=chunk) Directors' Long Positions in Shares of Associated Corporations | Director Name | Name of Associated Corporation | Capacity | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr Zheng Guodian | Haisen International Limited | Beneficial owner | 100% | | Mr Zheng Guosi | Xiejia Limited | Beneficial owner | 100% | | Mr Zheng Zhenzhong | Jianeng International Limited | Beneficial owner | 100% | [Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company](index=26&type=section&id=Substantial%20Shareholders'%20and%20Other%20Persons'%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company) As of June 30, 2025, Xiejia, Haisen, and Jianeng, as beneficial owners, along with Ms Wu Zihong, Mr Zheng Guodian, Ms Hong Mali, and Ms Su Li, as spouses' interests or interests in controlled corporations, all held significant long positions in the Company's shares Substantial Shareholders' and Other Persons' Long Positions in the Company's Shares | Shareholder Name/Entity | Capacity | Number of Ordinary Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Xiejia | Beneficial owner | 201,662,968 | 25.46% | | Ms Wu Zihong | Spouse's interest | 576,179,908 | 72.75% | | Haisen | Beneficial owner | 201,662,968 | 25.46% | | Mr Zheng Guodian | Interest in controlled corporation; interest held jointly with other persons | 576,179,908 | 72.75% | | Ms Hong Mali | Spouse's interest | 576,179,908 | 72.75% | | Jianeng | Beneficial owner | 172,853,972 | 21.82% | | Ms Su Li | Spouse's interest | 576,179,908 | 72.75% | - Ms Wu Zihong is the spouse of Mr Zheng Guosi, Ms Hong Mali is the spouse of Mr Zheng Guodian, and Ms Su Li is the spouse of Mr Zheng Zhenzhong; they are deemed to have an interest in the shares owned by their respective spouses under the Securities and Futures Ordinance[86](index=86&type=chunk)[91](index=91&type=chunk) - Mr Zheng Guodian beneficially owns **25.46%** of the shares through Haisen International Limited[86](index=86&type=chunk) [Share Option Scheme](index=27&type=section&id=Share%20Option%20Scheme) The Company adopted a share option scheme on February 18, 2021, to incentivize eligible participants and provide equity opportunities. As of June 30, 2025, no share options were granted, exercised, cancelled, or lapsed, and the scheme limit is **10%** of the issued shares - The share option scheme was adopted on February 18, 2021, to incentivize eligible participants and provide opportunities to own equity in the Company[88](index=88&type=chunk)[89](index=89&type=chunk) - Eligible participants include employees, executives, officers, directors, consultants, suppliers, customers, agents, and other individuals who have contributed to the Group[90](index=90&type=chunk)[94](index=94&type=chunk) - The scheme limit is **10%** of the total issued shares on the listing date, which is **79,200,000 shares**, and all unexercised share options shall not exceed **30%** of the issued shares from time to time[93](index=93&type=chunk)[96](index=96&type=chunk) - For the six months ended June 30, 2025, no share options were granted, exercised, cancelled, or lapsed under the share option scheme[88](index=88&type=chunk)[97](index=97&type=chunk) - Share options are exercisable within **10 years** from the date of grant and acceptance, with the subscription price not lower than the highest of the closing price on the grant date, the average closing price for the five business days immediately preceding the grant date, and the nominal value of the shares[99](index=99&type=chunk)[103](index=103&type=chunk)[106](index=106&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=31&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's ordinary shares - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's ordinary shares[104](index=104&type=chunk) [Events After Reporting Period](index=31&type=section&id=Events%20After%20Reporting%20Period) No significant events affecting the Group occurred after June 30, 2025, and up to the date of this announcement - No significant events affecting the Group occurred after June 30, 2025, and up to the date of this announcement[105](index=105&type=chunk) [Standard Code for Directors' Securities Transactions](index=32&type=section&id=Standard%20Code%20for%20Directors'%20Securities%20Transactions) The Group has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 of the Listing Rules as its code of conduct for directors' securities transactions, and all directors confirmed compliance during the reporting period - The Group has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 of the Listing Rules as its code of conduct for directors' securities transactions in shares[107](index=107&type=chunk) - Following specific enquiries with all directors, all directors have confirmed their compliance with the said code throughout the six months ended June 30, 2025[107](index=107&type=chunk) [Audit Committee](index=32&type=section&id=Audit%20Committee) The Company's Audit Committee, comprising 4 independent non-executive directors, has reviewed the Group's accounting principles, internal controls, financial reporting matters, and unaudited consolidated financial statements, deeming them compliant with applicable accounting standards and Listing Rules - The Audit Committee comprises 4 independent non-executive directors: Mr Wu Shiming, Mr Wang Linan, Mr Chen Congming, and Ms Liu Xuefeng[108](index=108&type=chunk) - The Audit Committee has reviewed the accounting principles and policies adopted by the Group, discussed internal controls and financial reporting matters, and the unaudited condensed consolidated financial statements for the six months ended June 30, 2025[108](index=108&type=chunk) - The Audit Committee believes that the relevant financial statements comply with applicable accounting standards and the Listing Rules and have made appropriate disclosures[108](index=108&type=chunk)

[Interim Condensed Consolidated Income Statement](index=1&type=section&id=Interim%20Condensed%20Consolidated%20Income%20Statement) The Group's unaudited interim condensed consolidated income statement for the six months ended June 30, 2025, shows an 8.6% year-on-year revenue increase, a significant improvement from operating loss to profit, and a substantial reduction in loss for the period | Indicator | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,817,904 | 1,673,274 | 8.6% | | Other income, net | 8,242 | 4,655 | 77.0% | | Operating profit / (loss) | 12,783 | (64,162) | Significant improvement | | Finance costs, net | (11,850) | (15,304) | -22.6% | | Profit / (loss) before income tax | 12,728 | (70,861) | Significant improvement | | Income tax expense | (16,139) | (10,774) | 49.8% | | Loss for the period | (3,411) | (81,635) | -95.8% | | Loss attributable to equity holders of the Company | (11,042) | (84,090) | -86.9% | | Basic loss per share (HK cents) | (1.51) | (11.52) | Significant improvement | | Diluted loss per share (HK cents) | (1.51) | (11.52) | Significant improvement | [Interim Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) The Group's total comprehensive loss for the six months ended June 30, 2025, significantly narrowed, primarily due to a positive shift from foreign currency exchange loss to gain, despite equity investments' fair value moving from gain to loss | Indicator | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Loss for the period | (3,411) | (81,635) | -95.8% | | Fair value (loss) / gain on equity investments at fair value through other comprehensive income, net of tax | (34,522) | 22,524 | Shift from gain to loss | | Currency translation differences | 34,646 | (19,359) | Shift from loss to gain | | Total comprehensive loss for the period | (3,287) | (78,470) | -95.8% | | Attributable to equity holders of the Company | (19,068) | (76,601) | -75.1% | | Non-controlling interests | 15,781 | (1,869) | Shift from loss to gain | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets increased from December 31, 2024, driven by higher current assets including trade and other receivables, inventories, short-term bank deposits, and cash equivalents, while total liabilities also rose and total equity slightly decreased | Indicator | June 30, 2025 (HKD thousands) | Dec 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total assets | 3,141,784 | 2,905,646 | 8.1% | | Total non-current assets | 613,566 | 648,330 | -5.4% | | Total current assets | 2,528,218 | 2,257,316 | 12.0% | | Inventories | 668,033 | 624,358 | 7.0% | | Trade and other receivables | 1,175,177 | 1,058,228 | 11.0% | | Short-term bank deposits | 95,737 | 59,075 | 62.1% | | Cash and cash equivalents | 534,877 | 467,438 | 14.4% | | Total liabilities | 1,669,957 | 1,418,563 | 17.7% | | Total current liabilities | 1,611,754 | 1,354,392 | 19.0% | | Trade and other payables | 772,201 | 670,464 | 15.2% | | Bank borrowings | 681,103 | 567,920 | 19.9% | | Total equity | 1,471,827 | 1,487,083 | -1.0% | [Notes to the Financial Statements](index=6&type=section&id=Notes%20to%20the%20Financial%20Statements) This section details the basis of preparation for interim financial information, changes in significant accounting policies, segment operating performance, finance costs, income tax expense, earnings per share calculation, dividend policy, and aging analysis of trade receivables and payables, along with share capital structure [Basis of Preparation](index=6&type=section&id=Basis%20of%20Preparation) - The unaudited interim condensed consolidated financial information is prepared in accordance with Appendix D2 of the Listing Rules of the Stock Exchange of Hong Kong and HKAS 34 'Interim Financial Reporting', and should be read in conjunction with the 2024 annual financial statements[11](index=11&type=chunk) [Significant Accounting Policies](index=6&type=section&id=Significant%20Accounting%20Policies) - The Group adopted amendments to HKAS 21 and HKFRS 1 'Lack of Exchangeability' from January 1, 2025, with no impact on amounts recognized in prior or current periods[13](index=13&type=chunk) - New and revised standards and interpretations issued but not yet adopted include 'Annual Improvements to HKFRS Standards – Volume 11' and 'Amendments to Classification and Measurement of Financial Instruments', with the Group currently assessing their potential impact[14](index=14&type=chunk)[15](index=15&type=chunk) [Segment Information](index=7&type=section&id=Segment%20Information) - The Group operates in two segments: Trading and Distribution (trading and distribution of chemicals, materials, and equipment used in manufacturing printed circuit boards and electronic products) and Original Product Manufacturing (manufacturing of electrical and electronic products)[16](index=16&type=chunk) 2025 H1 Segment Results | Segment | Revenue (HKD thousands) | Segment Results (HKD thousands) | Segment Operating Profit / (Loss) (HKD thousands) | | :--- | :--- | :--- | :--- | | Trading and Distribution | 1,063,693 | 68,009 | 69,063 | | Original Product Manufacturing | 877,533 | (46,138) | (58,466) | | Consolidated | 1,817,904 | 12,783 | 933 | 2024 H1 Segment Results | Segment | Revenue (HKD thousands) | Segment Results (HKD thousands) | Segment Operating Profit / (Loss) (HKD thousands) | | :--- | :--- | :--- | :--- | | Trading and Distribution | 846,430 | 13,093 | 14,457 | | Original Product Manufacturing | 915,884 | (67,967) | (84,694) | | Consolidated | 1,673,274 | (64,162) | (79,466) | Segment Assets and Liabilities (June 30, 2025) | Segment | Segment Assets (HKD thousands) | Segment Liabilities (HKD thousands) | | :--- | :--- | :--- | | Trading and Distribution | 1,462,869 | 491,198 | | Original Product Manufacturing | 1,523,915 | 1,122,423 | | Others | 155,000 | 56,336 | | Consolidated | 3,141,784 | 1,669,957 | Segment Assets and Liabilities (December 31, 2024) | Segment | Segment Assets (HKD thousands) | Segment Liabilities (HKD thousands) | | :--- | :--- | :--- | | Trading and Distribution | 1,314,982 | 417,762 | | Original Product Manufacturing | 1,370,951 | 920,966 | | Others | 219,713 | 79,835 | | Consolidated | 2,905,646 | 1,418,563 | [Net Finance Costs](index=10&type=section&id=Net%20Finance%20Costs) | Indicator | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Interest income | 2,821 | 3,604 | -21.7% | | Interest expense | (14,671) | (18,908) | -22.4% | | Finance costs, net | (11,850) | (15,304) | -22.6% | [Income Tax Expense](index=11&type=section&id=Income%20Tax%20Expense) - No provision for Hong Kong profits tax has been made as carried forward tax losses are sufficient to offset estimated assessable profits[20](index=20&type=chunk) - Chinese subsidiaries are subject to enterprise income tax at a rate of **25%**, while Taiwanese subsidiaries are subject to enterprise income tax at a rate of **20%**[20](index=20&type=chunk) | Tax Category | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | | :--- | :--- | :--- | | China enterprise income tax | 5,208 | 3,429 | | Taiwan enterprise income tax | 7,082 | 2,242 | | Other jurisdictions | 780 | 3,582 | | Withholding tax on dividends declared by subsidiaries | 3,072 | 1,521 | | Total income tax expense | 16,139 | 10,774 | [Loss Per Share](index=11&type=section&id=Loss%20Per%20Share) Basic Loss Per Share | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Loss attributable to equity holders of the Company (HKD thousands) | (11,042) | (84,090) | | Weighted average number of ordinary shares in issue (thousands) | 729,898 | 729,898 | | Basic loss per share (HK cents per share) | (1.51) | (11.52) | - Diluted loss per share for the six months ended June 30, 2025, and 2024, is equivalent to basic loss per share due to the anti-dilutive effect of share options[24](index=24&type=chunk) [Dividends](index=12&type=section&id=Dividends) - The Board resolved not to recommend the payment of any interim dividend for the six months ended June 30, 2025 (2024: **HKD zero**)[25](index=25&type=chunk) [Trade and Other Receivables](index=12&type=section&id=Trade%20and%20Other%20Receivables) - As of June 30, 2025, total trade and other receivables amounted to **HKD 1,095,931 thousand**, an increase from December 31, 2024[26](index=26&type=chunk)[27](index=27&type=chunk) - The Group grants trade customers credit periods ranging from **30 to 180 days**, with longer terms for some long-standing customers[26](index=26&type=chunk) Aging Analysis of Trade and Bills Receivables | Aging | June 30, 2025 (HKD thousands) | Dec 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | 0 to 30 days | 684,433 | 344,246 | | 31 to 60 days | 91,184 | 196,811 | | 61 to 90 days | 97,271 | 183,742 | | Over 90 days | 223,043 | 307,063 | | Total | 1,095,931 | 1,031,862 | [Trade and Other Payables](index=13&type=section&id=Trade%20and%20Other%20Payables) - As of June 30, 2025, total trade and other payables amounted to **HKD 604,598 thousand**, an increase from December 31, 2024[28](index=28&type=chunk)[29](index=29&type=chunk) Aging Analysis of Trade and Bills Payables | Aging | June 30, 2025 (HKD thousands) | Dec 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | 0 to 30 days | 279,350 | 230,549 | | 31 to 60 days | 146,486 | 121,362 | | 61 to 90 days | 75,187 | 81,808 | | Over 90 days | 103,575 | 91,190 | | Total | 604,598 | 524,909 | [Share Capital](index=13&type=section&id=Share%20Capital) Issued and Fully Paid Share Capital | Date | Number of Ordinary Shares | Share Capital (HKD thousands) | | :--- | :--- | :--- | | Dec 31, 2024, Jan 1, 2025, and June 30, 2025 | 729,897,964 | 72,990 | [Business Review and Outlook](index=14&type=section&id=Business%20Review%20and%20Outlook) The Group's revenue grew by **8.6%** in the first half of 2025, with a significant reduction in net loss, primarily driven by strong performance in the Trading and Distribution segment and improved operational efficiency in Original Product Manufacturing; the Group plans to continue optimizing cost structures, enhancing efficiency, and actively addressing market challenges [Business Review](index=14&type=section&id=Business%20Review) - Revenue for the first half of 2025 was **HKD 1.8 billion**, an increase of approximately **8.6%** compared to the same period last year[31](index=31&type=chunk) - Net loss attributable to equity holders of the Company was **HKD 11 million**, a significant improvement from **HKD 84.1 million** in the prior year period[31](index=31&type=chunk) - Positive performance was primarily driven by strong results in the Trading and Distribution segment, strategic responses to geopolitical pressures and global economic volatility in Original Product Manufacturing, and a decrease in net finance costs[31](index=31&type=chunk) - The Trading and Distribution segment's revenue was **HKD 0.9 billion**, a year-on-year increase of approximately **25.7%**, mainly due to increased demand for distributed products from Taiwanese and mainland Chinese subsidiaries, as well as customer inventory expansion and capital expenditure increases[31](index=31&type=chunk) - The Trading and Distribution segment recorded an operating profit of **HKD 69.1 million**, compared to **HKD 14.5 million** in the prior year period[31](index=31&type=chunk) - The Original Product Manufacturing segment's revenue was **HKD 0.88 billion**, a slight year-on-year decrease of approximately **4.2%**, impacted by geopolitical pressures and global economic volatility[32](index=32&type=chunk) - The Original Product Manufacturing segment recorded an operating loss of **HKD 58.5 million**, a reduction from **HKD 84.7 million** in the prior year period, primarily due to effective implementation of operational cost reduction plans and enhanced operational efficiency[32](index=32&type=chunk) [Financial Position](index=14&type=section&id=Financial%20Position) - As of June 30, 2025, the Group had secured total bank and other financing of **HKD 2.58 billion**, with **HKD 0.775 billion** utilized[33](index=33&type=chunk) - Consolidated net debt was **HKD 0.116 billion**, total equity was **HKD 1.472 billion**, and the net gearing ratio was **7.9%**[33](index=33&type=chunk) - The majority of the Group's sales are conducted in the same currency as the corresponding purchase transactions, and foreign exchange contracts have been entered into to hedge against exchange rate fluctuations[33](index=33&type=chunk) [Capital Structure](index=15&type=section&id=Capital%20Structure) - The Group's capital structure comprises bank borrowings, cash and cash equivalents, short-term bank deposits, and equity attributable to equity holders of the Company (including issued share capital and reserves)[34](index=34&type=chunk) [Human Resources](index=15&type=section&id=Human%20Resources) - As of June 30, 2025, the Group had a total of **3,428 employees**, with **175** based in Hong Kong, **2,446** in mainland China, and **807** overseas[35](index=35&type=chunk) - Employee remuneration is primarily determined by job performance, experience, and industry practice, with benefits including provident fund schemes, medical allowances, training programs, discretionary bonuses, and share options[35](index=35&type=chunk) [Outlook](index=15&type=section&id=Outlook) - The Trading and Distribution segment anticipates demand to remain largely stable in the second half of 2025, driven by current business inquiries and orders from customers expanding production capacity[36](index=36&type=chunk) - The Original Product Manufacturing segment expects moderate revenue growth in the second half of 2025, primarily benefiting from the continuous expansion of production scale and improved operational efficiency at its Mexican manufacturing facility[36](index=36&type=chunk) - The Group will continue to implement its long-term sustainable development strategy by streamlining underperforming business units and optimizing internal resource allocation to reduce overall operating costs and enhance efficiency[36](index=36&type=chunk) - Management will closely monitor market dynamics and make timely, data-driven strategic adjustments to address macroeconomic challenges and maintain a competitive advantage[36](index=36&type=chunk) [Corporate Governance and Others](index=15&type=section&id=Corporate%20Governance%20and%20Others) The Group did not purchase, sell, or redeem any listed securities during the reporting period, complied with the Corporate Governance Code with a deviation in directors' rotation, adopted a standard code for directors' securities transactions, and the Audit Committee reviewed financial reporting and internal controls [Purchase, Sale or Redemption of the Company's Listed Securities](index=15&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) - During the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[37](index=37&type=chunk) [Corporate Governance](index=16&type=section&id=Corporate%20Governance) - The Company complied with the Corporate Governance Code set out in Appendix C1 of the Listing Rules for the six months ended June 30, 2025, with the exception of Code Provision B.2.2[38](index=38&type=chunk) - The deviation relates to the Company's Articles of Association requiring all directors (except the Executive Chairman) to retire by rotation and be eligible for re-election at annual general meetings, whereas the Code requires each director to retire by rotation at least once every three years; the Board believes the current arrangement is in the best interest of the Company and its shareholders as a whole[38](index=38&type=chunk) - The Company has adopted a code of conduct for directors' securities transactions, the terms of which are no less exacting than the Model Code set out in Appendix C3 of the Listing Rules, and all directors have confirmed compliance[39](index=39&type=chunk) [Audit Committee](index=16&type=section&id=Audit%20Committee) - The Audit Committee, in conjunction with management, reviewed the accounting principles and practices adopted by the Group and discussed matters related to auditing, risk management, internal control systems, and financial reporting, including the unaudited interim condensed consolidated financial information for the six months ended June 30, 2025[40](index=40&type=chunk) [Publication of Results and Interim Report](index=17&type=section&id=Publication%20of%20Results%20and%20Interim%20Report) - This results announcement is published on the Company's website www.wkkintl.com/i_announcement_t.aspx and the Stock Exchange's website www.hkexnews.hk[41](index=41&type=chunk) - The 2025 Interim Report will be published on the aforementioned websites in due course[41](index=41&type=chunk) [Acknowledgements and Board Composition](index=17&type=section&id=Acknowledgements%20and%20Board%20Composition) - The Board extends its sincere gratitude to all employees, partners, and shareholders for their loyalty, support, and trust[41](index=41&type=chunk) - As of the date of this announcement, the Company's Executive Directors are Mr. Wong Chung Tong, Ms. Wong Ngai Kiu, Ms. Wong Yin Tak, and Mr. Cheung Shui Sun; the Independent Non-executive Directors are Mr. Tse Hung Chung, Dr. Leung Kam Fong, Dr. Ip Wai Kwong, and Mr. Lam Yiu Wing[43](index=43&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部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。 國泰海通證券股份有限公司 Guotai Haitong Securities Co., Ltd. （於中華人民共和國註冊成立的股份有限公司） （股份代號：02611） 截至2025年6月30日止六個月之中期業績公告 國泰海通證券股份有限公司（「本公司」）董事會（「董事會」）謹此宣佈本公司及其 附屬公司（「本集團」）截至2025年6月30日止六個月之未經審計中期業績。本公告 載列2025年中期報告全文，並符合香港聯合交易所有限公司證券上市規則中有關 中期業績初步公告附載的資料之要求。 本業績公告將分別在香港聯合交易所有限公司網站( www.hkexnews.hk )及本公司 網站( www.gtht.com )上刊發。 本公司將於適當時候在香港聯合交易所有限公司網站及本公司網站刊載2025年中 期報告，並將寄發予已提供指示表示欲收取印刷文本的本公司股東。 承董事會命 國泰海通證券股份有限公司 朱健 董事長 ...

[Company Information and Report Declaration](index=1&type=section&id=Company%20Information%20and%20Report%20Declaration) This section outlines the company's listing characteristics on GEM, emphasizing investment risks, and confirms directors' collective and individual responsibility for report accuracy [GEM Listing Characteristics and Disclaimer](index=2&type=section&id=GEM%20Listing%20Characteristics%20and%20Disclaimer) This section details the characteristics of the Hong Kong Stock Exchange's GEM market, highlighting its high-risk platform for SMEs and the directors' collective and individual responsibility for report accuracy - The GEM market is positioned as a listing platform for small and medium-sized companies with high investment risks, where securities may be subject to significant market volatility[2](index=2&type=chunk) - The Company's directors jointly and individually assume responsibility for the accuracy, completeness, and non-misleading nature of the report's information[2](index=2&type=chunk) [Report Overview and Availability](index=2&type=section&id=Report%20Overview%20and%20Availability) This report is the full interim report for Superman Intelligent Holdings Limited for the six months ended June 30, 2025, compliant with GEM Listing Rules and published on the HKEX and company website - This report is the interim report of Superman Intelligent Holdings Limited for the six months ended June 30, 2025[3](index=3&type=chunk) - The report complies with GEM Listing Rules and is available on the HKEX and the Company's website[3](index=3&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including the statement of profit or loss, financial position, changes in equity, and cash flows [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's revenue grew significantly by 72.8% to HKD 5,129 thousand, with gross profit increasing to HKD 3,398 thousand, yet high finance costs resulted in a loss of HKD 12,208 thousand Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | Six Months Ended June 30, 2025 (Thousand HKD) | Six Months Ended June 30, 2024 (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 5,129 | 2,968 | +72.8% | | Cost of sales | (1,731) | (1,419) | +22.0% | | Gross profit | 3,398 | 1,549 | +119.4% | | Operating loss | (392) | (3,167) | -87.6% | | Finance costs | (11,671) | (10,992) | +6.2% | | Loss for the period | (12,208) | (14,159) | -13.8% | | Loss for the period attributable to owners of the Company | (5,768) | (8,396) | -31.3% | | Basic and diluted loss per share (HK cents) | (0.92) | (1.38) | -33.3% | - Net other gains and losses turned from a net loss of **HKD 322 thousand** in the prior period to a net gain of **HKD 1,432 thousand**[5](index=5&type=chunk) - Administrative expenses increased by **36.8%** year-on-year to **HKD 5,829 thousand**[5](index=5&type=chunk) [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets decreased to HKD 20,978 thousand, facing challenges of capital deficiency and significantly increased net current liabilities, indicating sustained financial pressure Key Data from Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Total assets | 20,978 | 26,332 | -20.3% | | Cash and cash equivalents | 11,026 | 14,038 | -21.4% | | Capital deficiency attributable to owners of the Company | (77,345) | (77,334) | +0.01% | | Total capital deficiency | (171,933) | (161,949) | +6.2% | | Current liabilities | 190,451 | 43,058 | +342.3% | | Other borrowings (current) | 148,438 | 7,207 | +1959.6% | | Net current liabilities | (171,666) | (18,576) | +824.1% | - Trade payables significantly decreased from **HKD 5,524 thousand** to **HKD 1,293 thousand**[9](index=9&type=chunk) - Accruals and other payables increased from **HKD 19,541 thousand** to **HKD 29,060 thousand**[9](index=9&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, the total equity deficiency attributable to owners of the Company slightly increased from HKD (77,334) thousand to HKD (77,345) thousand, influenced by the loss for the period and exchange reserve changes, partially offset by new share issuance through debt capitalization Key Data from Condensed Consolidated Statement of Changes in Equity | Metric | January 1, 2025 (Thousand HKD) | June 30, 2025 (Thousand HKD) | Change (Thousand HKD) | | :--- | :--- | :--- | :--- | | Capital deficiency attributable to owners of the Company | (77,334) | (77,345) | (11) | | Non-controlling interests | (84,615) | (94,588) | (9,973) | | Share capital | 60,746 | 65,300 | +4,554 | | Accumulated losses | (673,539) | (679,307) | (5,768) | | New shares issued by way of debt capitalization | — | 7,195 | +7,195 | - Total comprehensive loss for the period was **HKD 17,179 thousand**, of which **HKD 7,206 thousand** was attributable to owners of the Company[10](index=10&type=chunk) - New shares issued by way of debt capitalization resulted in an increase of **HKD 4,554 thousand** in share capital and **HKD 2,641 thousand** in share premium, totaling **HKD 7,195 thousand**[10](index=10&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, the Group experienced negative net cash from operating activities, and cash outflows from investing and financing activities, leading to a net decrease of HKD 3,251 thousand in cash and cash equivalents, with the period-end balance at HKD 11,026 thousand Key Data from Condensed Consolidated Statement of Cash Flows | Metric | Six Months Ended June 30, 2025 (Thousand HKD) | Six Months Ended June 30, 2024 (Thousand HKD) | Change (Thousand HKD) | | :--- | :--- | :--- | :--- | | Net cash (used in) / generated from operating activities | (884) | 2,539 | (3,423) | | Net cash used in investing activities | (334) | (1,778) | +1,444 | | Net cash used in financing activities | (2,033) | (2,193) | +160 | | Net decrease in cash and cash equivalents | (3,251) | (1,432) | (1,819) | | Cash and cash equivalents at end of reporting period | 11,026 | 9,707 | +1,319 | - Operating cash flow shifted from a net inflow in the prior period to a net outflow of **HKD 884 thousand**[11](index=11&type=chunk) - Exchange rate changes had a positive impact of **HKD 239 thousand** on cash and cash equivalents, compared to a negative impact in the prior period[11](index=11&type=chunk) [Notes to the Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the unaudited condensed consolidated financial statements, covering general information, basis of preparation, segment information, and specific financial line items [General Information](index=9&type=section&id=General%20Information) Superman Intelligent Holdings Limited is incorporated in the Cayman Islands and re-domiciled in Bermuda, listed on the HKEX GEM, with its principal business in engineering products and services (robotics business), and financial statements presented in Thousand HKD - The Company was incorporated in the Cayman Islands, subsequently re-domiciled in Bermuda, and its shares are listed on the GEM of The Stock Exchange of Hong Kong Limited[12](index=12&type=chunk) - The Group's principal business is the provision of engineering products and related services (robotics business)[13](index=13&type=chunk) [Basis of Preparation and Going Concern](index=9&type=section&id=Basis%20of%20Preparation%20and%20Going%20Concern) Interim financial information is prepared in accordance with HKAS 34 and GEM Listing Rules. The Group faces significant going concern uncertainties due to net loss, capital deficiency, and net current liabilities, but has taken measures like new financing, operational improvements, and seeking additional funds - The interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 and the GEM Listing Rules[14](index=14&type=chunk) - The Group recorded a net loss of **HKD 12,208 thousand**, a capital deficiency of **HKD 171,933 thousand**, and net current liabilities of **HKD 171,666 thousand**, indicating significant uncertainties regarding its ability to continue as a going concern[15](index=15&type=chunk) - Measures taken to mitigate liquidity pressure include: securing new financing of approximately **HKD 21,924 thousand** from Huizhou Jinda Sheng Investment, actively improving operating performance of the robotics business, and seeking additional external funding[18](index=18&type=chunk) [Operating Segment Information](index=11&type=section&id=Operating%20Segment%20Information) The Group operates a single segment providing engineering products and related services (robotics products and automation system installation, support, and maintenance services), with all revenue and non-current assets derived from China and high customer concentration - The Group has only one operating segment: the provision of engineering products and related services, including robotics products and related installation, support, and maintenance services[20](index=20&type=chunk) - All of the Group's revenue and non-current assets are derived from and located in China[21](index=21&type=chunk) Revenue Contribution from Major Customers | Customer | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Customer A | 4,754 | — | | Customer C | — | 2,396 | [Revenue and Other Income](index=12&type=section&id=Revenue%20and%20Other%20Income) For the six months ended June 30, 2025, the Group's total revenue was HKD 5,129 thousand, primarily from engineering products and related services, with a small amount from wine sales, while other income, mainly interest income, slightly decreased year-on-year Revenue Composition | Revenue Source | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Provision of engineering products and related services | 5,119 | 2,968 | | Sales of wine | 10 | — | | **Total Revenue** | **5,129** | **2,968** | Other Income | Income Source | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Interest income | 47 | 56 | | Other income | 1 | — | | **Total Other Income** | **48** | **56** | [Net Other Gains and Losses](index=12&type=section&id=Net%20Other%20Gains%20and%20Losses) Net other gains and losses for the period turned from a net loss in the prior period to a net gain of HKD 1,432 thousand, primarily due to gains from financial liability revisions and reversal of write-down of obsolete inventories Composition of Net Other Gains and Losses | Item | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Gain on revision of financial liabilities | 728 | — | | Reversal of write-down of obsolete inventories | 723 | — | | Loss on disposal of property, plant and equipment | — | (322) | | Net exchange loss | (18) | — | | Others | (1) | — | | **Total** | **1,432** | **(322)** | [Composition of Operating Loss](index=13&type=section&id=Composition%20of%20Operating%20Loss) In the calculation of operating loss, staff costs (including salaries, allowances, and retirement benefit scheme contributions) significantly increased, while depreciation expenses decreased Major Deductions in Operating Loss | Item | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 25 | 53 | | Staff costs (salaries and other allowances) | 2,191 | 1,088 | | Staff costs (contributions to retirement benefit schemes) | 63 | 84 | - Total staff costs increased from **HKD 1,172 thousand** to **HKD 2,254 thousand**, an increase of approximately **92.3%**[26](index=26&type=chunk) [Finance Costs](index=13&type=section&id=Finance%20Costs) Finance costs for the period, primarily from interest on other borrowings, slightly increased year-on-year, reflecting the continuous impact of the company's borrowing scale or interest rates Finance Costs | Item | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Interest on other borrowings | 11,671 | 10,992 | - Finance costs increased by **6.2%** year-on-year, primarily consisting of interest on other borrowings[27](index=27&type=chunk) [Income Tax Expense](index=13&type=section&id=Income%20Tax%20Expense) The period recorded China corporate income tax expense of HKD 145 thousand, compared to no income tax expense in the prior period, mainly because the Group's Chinese subsidiary generated taxable profit this period, while no taxable profit was generated in Hong Kong or China previously Income Tax Expense | Item | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | China corporate income tax - Current tax | 145 | — | - Hong Kong profits tax is provided at **16.5%**, and China corporate income tax at **25%**[28](index=28&type=chunk) - China corporate income tax expense of **HKD 145 thousand** was incurred this period, with none in the prior period[30](index=30&type=chunk) [Interim Dividend](index=13&type=section&id=Interim%20Dividend) The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025, consistent with the prior period - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025[31](index=31&type=chunk) [Loss Per Share](index=14&type=section&id=Loss%20Per%20Share) For the six months ended June 30, 2025, the basic and diluted loss per share attributable to owners of the Company was HKD 0.92 cents, an improvement from HKD 1.38 cents in the prior period, mainly due to a reduction in the loss amount Loss Per Share | Metric | 2025 (HK cents) | 2024 (HK cents) | | :--- | :--- | :--- | | Basic and diluted loss per share | (0.92) | (1.38) | Weighted Average Number of Ordinary Shares | Metric | 2025 (Thousand shares) | 2024 (Thousand shares) | | :--- | :--- | :--- | | Weighted average number of ordinary shares used in calculating basic and diluted loss per share | 628,848 | 607,464 | - The Group had no outstanding potential dilutive ordinary shares in either period, thus basic and diluted loss per share are the same[32](index=32&type=chunk) [Property, Plant and Equipment](index=14&type=section&id=Property%2C%20Plant%20and%20Equipment) For the six months ended June 30, 2025, the Group purchased approximately HKD 368,800 in property, plant and equipment, with no new purchases in the prior period - Purchases of property, plant and equipment amounted to approximately **HKD 368,800** this period, with none in the prior period[33](index=33&type=chunk) [Trade Receivables](index=14&type=section&id=Trade%20Receivables) As of June 30, 2025, total trade receivables were HKD 5,800 thousand, a slight decrease from December 31, 2024, with the vast majority aged within 30 days, indicating efficient collection Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | 0-30 days | 5,747 | 5,971 | | Over 90 days | 53 | 61 | | **Total** | **5,800** | **6,032** | - The Group grants credit terms to customers for a maximum of **12 months**[34](index=34&type=chunk) [Share Capital](index=15&type=section&id=Share%20Capital) As of June 30, 2025, the Company's issued share capital increased to HKD 65,300 thousand, primarily through the issuance of new shares by way of debt capitalization to settle outstanding unsecured loans Movements in Share Capital | Item | Number of Shares (Thousand shares) | Amount (Thousand HKD) | | :--- | :--- | :--- | | Issued and fully paid at January 1, 2025 | 607,464 | 60,746 | | New shares issued by way of debt capitalization | 45,537 | 4,554 | | **Issued and fully paid at June 30, 2025** | **653,001** | **65,300** | - On April 7, 2025, the Company completed the allotment and issuance of **45,537,129 new shares** at **HKD 0.174 per share** to settle unsecured loans of approximately **HKD 7,923 thousand**[35](index=35&type=chunk) [Trade Payables](index=15&type=section&id=Trade%20Payables) As of June 30, 2025, total trade payables were HKD 1,293 thousand, a significant decrease from December 31, 2024, with most aged within 30 days, reflecting improved payment efficiency to suppliers Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | 0-30 days | 1,142 | 5,378 | | Over 90 days | 151 | 146 | | **Total** | **1,293** | **5,524** | - Suppliers generally grant credit terms for a maximum of **120 days**[36](index=36&type=chunk) [Commitments and Contingent Liabilities](index=16&type=section&id=Commitments%20and%20Contingent%20Liabilities) As of June 30, 2025, and December 31, 2024, the Group had no significant capital commitments or contingent liabilities - The Group had no significant capital commitments at the end of the reporting period or the previous year-end[37](index=37&type=chunk) - The Group had no significant contingent liabilities at the end of the reporting period or the previous year-end[39](index=39&type=chunk) [Major Non-Cash Transactions and Post-Reporting Period Events](index=16&type=section&id=Major%20Non-Cash%20Transactions%20and%20Post-Reporting%20Period%20Events) The main non-cash transaction for the period was the issuance of new shares by way of debt capitalization to settle unsecured loans, with no significant post-reporting period events - The major non-cash transaction was the issuance of **45,537,129 new shares** on April 7, 2025, to settle unsecured loans of approximately **HKD 7,923 thousand**[38](index=38&type=chunk) - No significant events occurred after the end of the reporting period[40](index=40&type=chunk) [Management Discussion and Analysis](index=17&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a comprehensive review of the Group's business and financial performance, liquidity, and future outlook, highlighting key operational and strategic developments [Business Review](index=17&type=section&id=Business%20Review) The Group primarily engages in the robotics business, including product development, sales, and related engineering services, with significant growth in engineering business revenue this period and active expansion into commercial patrol robots, special-purpose robots, and property management engineering installation services through its subsidiary Anze Intelligent Robotics Co., Ltd - The Group primarily provides robotics products and automation system equipment installation, support, and maintenance services[41](index=41&type=chunk) - Engineering business revenue grew by **72.8%**, contributing approximately **HKD 5.1 million** to total turnover[41](index=41&type=chunk) [Overview of Engineering Business](index=17&type=section&id=Overview%20of%20Engineering%20Business) The Group continues to develop and improve its robotics products and accelerate product commercialization, achieving significant revenue growth in its engineering business this period - The Group continues to develop and improve its robotics products, accelerating product commercialization at a faster pace[41](index=41&type=chunk) - During 2025, engineering business revenue grew by **72.8%**, contributing approximately **HKD 5.1 million** to total turnover[41](index=41&type=chunk) [Business Model and Products](index=17&type=section&id=Business%20Model%20and%20Products) The Group operates in mainland China through Shenzhen Anze Intelligent Robotics Co., Ltd., utilizing AI and robotics technology to produce commercial patrol robots and special-purpose robots, serving clients including unicorn robotics companies, property management firms, and public security agencies - The Group operates in the mainland China market through Shenzhen Anze Intelligent Robotics Co., Ltd. (Anze)[42](index=42&type=chunk) - Anze produces commercial patrol robots (with AI detection and recognition capabilities) and special-purpose robots (primarily sold to government agencies like public security bureaus for handling hazardous materials)[42](index=42&type=chunk) - Major clients include unicorn robotics companies, property management companies, and public security agencies in various provinces across mainland China[42](index=42&type=chunk) [Business Expansion](index=17&type=section&id=Business%20Expansion) Anze actively collaborates with existing property management clients to expand its business scope, offering customized equipment and robotics engineering installation services for applications such as parking lot patrols, infrastructure, community surveillance, and system integration - Anze actively collaborates with existing property management business clients to explore business opportunities[43](index=43&type=chunk) - Expanding its business scope to provide customized equipment and robotics engineering installation services for property management companies, applied in scenarios such as parking lot patrols, infrastructure, community surveillance, and system integration[43](index=43&type=chunk) [Financial Review](index=18&type=section&id=Financial%20Review) This period saw a significant 72.8% increase in turnover to HKD 5.1 million, with gross profit margin improving to 66.3%. Net other gains and losses turned profitable, but increased administrative expenses and finance costs resulted in a loss attributable to owners of the Company of HKD 5.8 million, albeit narrowed from the prior period Key Financial Review Data | Metric | Six Months Ended June 30, 2025 (Approx. Million HKD) | Six Months Ended June 30, 2024 (Approx. Million HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Turnover | 5.1 | 3.0 | +72.8% | | Gross profit | 3.4 | 1.5 | +126.7% | | Gross profit margin | 66.3% | 52.2% | +14.1pp | | Other gains and losses (net) | 1.4 (Net income) | (0.3) (Net loss) | Turnaround to profit | | Selling and distribution costs | 0.131 | 0.202 | -35.1% | | Administrative expenses | 5.8 | 4.3 | +36.8% | | Finance costs | 11.7 | 11.0 | +6.4% | | Loss attributable to owners of the Company | 5.8 | 8.4 | -31.0% | - Net other gains and losses recorded a net income of approximately **HKD 1.4 million**, primarily comprising gains from changes in financial liabilities and reversal of write-down of obsolete inventories[44](index=44&type=chunk) - The increase in administrative expenses was mainly due to higher staff costs and professional fees[45](index=45&type=chunk) [Liquidity and Financial Resources](index=19&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's total borrowings increased to HKD 150.9 million, mostly secured, with some bank balances frozen due to labor disputes. Total assets and cash and cash equivalents both decreased, indicating continued liquidity strain Borrowing Status | Borrowing Type | June 30, 2025 (Approx. Million HKD) | December 31, 2024 (Approx. Million HKD) | | :--- | :--- | :--- | | Total secured borrowings | 150.8 | 139.8 | | Unsecured borrowings | 0 | 7.2 | | **Total Borrowings** | **150.9** | **135.3** | - Secured borrowings are collateralized by equity interests in an indirect non-wholly owned subsidiary and bear interest at a fixed rate of **18%**[46](index=46&type=chunk) - Bank balances of approximately **HKD 131 thousand** were frozen due to labor disputes, and approximately **HKD 106 thousand** were denominated in RMB[46](index=46&type=chunk) - Total assets were approximately **HKD 21.0 million**, and cash and cash equivalents approximately **HKD 11.0 million**, both decreased from the previous year-end[47](index=47&type=chunk) [Share Capital and Gearing Ratio](index=19&type=section&id=Share%20Capital%20and%20Gearing%20Ratio) Share capital changed during the period, but the gearing ratio is not presented due to the Group's continuous capital deficiency - Details of share capital movements are set out in note 14 to the consolidated financial statements[48](index=48&type=chunk) - As the Group recorded a capital deficiency, the gearing ratio is not meaningful for presentation[49](index=49&type=chunk) [Foreign Exchange Risk and Employees](index=20&type=section&id=Foreign%20Exchange%20Risk%20and%20Employees) The Group currently does not use foreign currency derivatives to hedge foreign exchange risk, but management closely monitors and considers future hedging. As of June 30, 2025, the number of employees slightly decreased, but total staff costs significantly increased - The Group has not adopted foreign currency derivative instruments to hedge foreign exchange risk, and management will consider hedging when necessary[50](index=50&type=chunk) Employees and Staff Costs | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Number of employees | 11 | 12 | | Total staff costs (Approx. Million HKD) | 2.3 | 1.2 | - Staff remuneration, promotion, and salaries are assessed based on job responsibilities, performance, experience, and industry practice[51](index=51&type=chunk) [Material Investments, Acquisitions and Disposals](index=20&type=section&id=Material%20Investments%2C%20Acquisitions%20and%20Disposals) For the six months ended June 30, 2025, the Group did not undertake any material investments, or significant acquisitions or disposals of subsidiaries, associates, or affiliated companies - The Group had no material investments during the reporting period[52](index=52&type=chunk) - The Group had no material acquisitions or disposals of subsidiaries, associates, or affiliated companies during the reporting period[53](index=53&type=chunk) [Outlook](index=20&type=section&id=Outlook) The Company has made significant progress in engineering and automated production, and will continue to focus on enhancing product quality and technological innovation. It has launched new AI development and cloud computing products to seize market opportunities for sustainable growth, planning increased R&D investment, market expansion, and diversified business development - The Company has made significant progress in engineering and automated production, and will continue to focus on enhancing product quality and technological innovation[54](index=54&type=chunk) - New products, AI development and cloud computing, were launched in the fourth quarter of 2024, aiming to capture rapidly growing market opportunities[54](index=54&type=chunk) - In the future, the Board will continue to increase R&D investment, strengthen market expansion, and promote diversified business development[57](index=57&type=chunk) [Strategic Direction](index=20&type=section&id=Strategic%20Direction) The Company is committed to becoming a leading AI technology provider, driving market trends through continuous innovation and offering efficient, secure, and flexible cloud services - In AI development, the focus will be on developing intelligent solutions that enhance efficiency, reduce costs, and improve user experience[54](index=54&type=chunk) - In cloud computing, the commitment is to provide efficient, secure, and flexible cloud services, enhancing technological capabilities through strategic partnerships[56](index=56&type=chunk) [China AI Market Analysis](index=21&type=section&id=China%20AI%20Market%20Analysis) China's AI market is growing rapidly, projected to generate significant economic value for key industries by 2030. Despite slightly lower adoption than the global average, there is vast potential for monetization and economic value creation, prompting the company to strengthen technology-business integration and talent development - China's AI market is growing rapidly, projected to bring over **CNY 600 billion** in economic value to key industries by 2030[55](index=55&type=chunk) - China's AI adoption rate is **41%**, slightly below the global average, but there is still room for improvement in monetization and economic value creation[55](index=55&type=chunk) - The Company will focus on strengthening the integration of AI technology with business and enhancing AI-related talent development[55](index=55&type=chunk) [AI and Cloud Computing Development in the Next Five Years](index=21&type=section&id=AI%20and%20Cloud%20Computing%20Development%20in%20the%20Next%20Five%20Years) China's AI and cloud computing markets are expected to experience explosive growth in the next five years, with large AI models driving cloud computing development, projecting the cloud computing market to exceed CNY 2.1 trillion by 2027, and smart computing capacity to grow at a 52.3% CAGR - China's AI and cloud computing markets are expected to experience explosive growth in the next five years[56](index=56&type=chunk) - By 2027, China's cloud computing market is projected to exceed **CNY 2.1 trillion**, with smart computing capacity expected to grow at a CAGR of **52.3%**[56](index=56&type=chunk) - The 'East-to-West Computing Resource Transfer' project and the construction of smart computing centers will support industrial structure adjustment, establishing stronger computing capabilities and algorithmic infrastructure[56](index=56&type=chunk) [Other Information](index=22&type=section&id=Other%20Information) This section covers various other disclosures, including major shareholders' interests, directors' securities transactions, competing interests, share dealings, the audit committee's review, corporate governance practices, and board composition [Interests and Short Positions of Major Shareholders in Shares and Underlying Shares of the Company](index=22&type=section&id=Interests%20and%20Short%20Positions%20of%20Major%20Shareholders%20in%20Shares%20and%20Underlying%20Shares%20of%20the%20Company) As of June 30, 2025, several major shareholders and their associates held long positions in the Company's shares, with Mr. Su Zhi Tuan and his controlled entity, Tai Dong New Energy Holding Limited, being the largest shareholder with approximately 23.19% stake, and Ronshine Holdings Group Limited and its associates also holding a significant proportion Major Shareholders' Shareholding | Name of Shareholder | Nature of Interest | Total Number of Shares (Long Position) | Approximate Percentage of Shareholding (Long Position) | | :--- | :--- | :--- | :--- | | Mr. Su Zhi Tuan | Interest in controlled corporation | 151,425,197 | 23.19% | | Tai Dong New Energy Holding Limited | Beneficial owner | 151,425,197 | 23.19% | | Ronshine Holdings Group Limited | Interest in controlled corporation | 130,212,675 | 19.94% | | Mr. Huang Jian Hang | Beneficial owner | 89,970,697 | 13.78% | | Mr. Yang Jian Wei | Beneficial owner | 32,890,681 | 5.04% | - Mr. Su Zhi Tuan is deemed to be interested in **151,425,197 shares** through his wholly-owned Tai Dong New Energy Holding Limited[60](index=60&type=chunk) - Ronshine Holdings Group Limited indirectly holds shares in the Company through HKBridge Investment Limited, HKBridge Absolute Return Fund, L.P., and On Top Global Limited[60](index=60&type=chunk) [Securities Transactions by Directors](index=24&type=section&id=Securities%20Transactions%20by%20Directors) The Company has adopted a code of conduct for securities transactions by directors and relevant employees, and all directors confirmed compliance with this code and required standards during the reporting period after specific inquiries - The Company has adopted the 'Code for Securities Transactions by Directors' and the 'Code for Securities Transactions by Relevant Employees'[61](index=61&type=chunk) - All Directors confirmed compliance with the said codes of conduct and required standards for securities transactions for the six months ended June 30, 2025[61](index=61&type=chunk) [Competing Interests](index=24&type=section&id=Competing%20Interests) As of June 30, 2025, none of the directors, major shareholders, or their close associates held any interests in businesses that compete or may compete significantly with the Group's business - None of the Directors, major shareholders, or their close associates held any interests in businesses that compete or may compete significantly with the Group's business[62](index=62&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=24&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the reporting period[63](index=63&type=chunk) [Audit Committee](index=24&type=section&id=Audit%20Committee) The Audit Committee, composed of three independent non-executive directors, has reviewed the Group's unaudited condensed consolidated interim results for the six months ended June 30, 2025, and provided recommendations and opinions - The Audit Committee was established in accordance with Rules 5.28 to 5.29 of the GEM Listing Rules and comprises three independent non-executive directors[64](index=64&type=chunk) - The Audit Committee has reviewed the Group's interim results and provided recommendations and opinions[64](index=64&type=chunk) [Corporate Governance Code](index=24&type=section&id=Corporate%20Governance%20Code) The Company is committed to maintaining high standards of corporate governance and complied with the Corporate Governance Code set out in Appendix C1 of the GEM Listing Rules during the reporting period. The roles of Chairman and Chief Executive Officer are separate, but the CEO position is currently vacant, with executive directors jointly handling daily management - The Company has complied with the code provisions of the Corporate Governance Code set out in Appendix C1 of the GEM Listing Rules throughout the reporting period[65](index=65&type=chunk) - The roles of Chairman and Chief Executive Officer are segregated, with Mr. Su Chun Fai serving as Chairman[66](index=66&type=chunk) - As of the reporting date, the Company has not appointed a Chief Executive Officer and is seeking a suitable candidate, with daily management handled jointly by the executive directors[66](index=66&type=chunk) [Board Composition](index=25&type=section&id=Board%20Composition) As of the reporting date, the Board of Directors comprises two executive directors (including the Chairman), one non-executive director, and three independent non-executive directors - The Board comprises two executive directors (Mr. Su Chun Fai as Chairman, Mr. Fung Ching), one non-executive director (Ms. Li Ka Chai), and three independent non-executive directors (Mr. Tam Billy, Mr. Tsui Kwok Chun, and Mr. Sit Wai)[67](index=67&type=chunk)

[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) [Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group turned from profit to loss, with significant declines in revenue, gross profit, and profit before tax Metrics | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 732,906 | 3,206,463 | | Cost of Sales | (1,273,119) | (3,112,274) | | Gross (Loss) Profit | (540,213) | 94,189 | | Profit (Loss) Before Tax | (616,799) | 19,477 | | Profit (Loss) for the Period Attributable to Owners of the Company | (523,148) | 16,885 | | Basic (Loss) Earnings Per Share (RMB cents) | (87.19) | 2.81 | - Revenue for the period significantly decreased by **77.1%** from **RMB 3,206,463 thousand** to **RMB 732,906 thousand**[5](index=5&type=chunk) - Gross profit turned from a profit of **RMB 94,189 thousand** in the prior period to a loss of **RMB 540,213 thousand** in the current period[5](index=5&type=chunk) [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) [Statement of Financial Position](index=3&type=section&id=Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's net current liabilities and net liabilities significantly increased, indicating heightened liquidity pressure Metrics | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current Assets | 2,272,323 | 2,228,043 | | Current Assets | 1,030,213 | 1,488,609 | | Current Liabilities | 2,126,355 | 2,243,122 | | Net Current Liabilities | (1,096,142) | (754,513) | | Net Liabilities | (99,640) | 423,762 | | Bank Balances and Cash | 5,200 | 35,268 | | Restricted Bank Deposits | 129,906 | 179,431 | - Net current liabilities increased from **RMB 754,513 thousand** as of December 31, 2024, to **RMB 1,096,142 thousand** as of June 30, 2025[6](index=6&type=chunk) - Equity attributable to owners of the Company turned from **RMB 422,032 thousand** as of December 31, 2024, to a deficit of **RMB (101,370) thousand** as of June 30, 2025[7](index=7&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements%20Notes) [1. Basis of Preparation](index=5&type=section&id=1.%20Basis%20of%20Preparation) The condensed consolidated financial statements are prepared under HKAS 34, with the directors affirming the Group's going concern despite net current liabilities - As of June 30, 2025, the Group's current liabilities exceeded current assets by **RMB 1,096,142 thousand**, and it recorded net liabilities of **RMB 99,640 thousand**[9](index=9&type=chunk) - The Board adopted the going concern basis for preparing the statements, based on existing bank credit facilities (**RMB 1,646,358 thousand** utilized, **RMB 1,208,877 thousand** unutilized) and projected operating cash flows[10](index=10&type=chunk)[11](index=11&type=chunk) [2. Accounting Policies](index=6&type=section&id=2.%20Accounting%20Policies) The condensed consolidated financial statements are prepared on a historical cost basis, with new HKFRS standards having no material impact - The Group first applied revised HKFRS accounting standards issued by the HKICPA, including HKAS 21 (Revised) Lack of Exchangeability[13](index=13&type=chunk) - The application of new accounting standards had no material impact on the financial position and performance for the current and prior periods[13](index=13&type=chunk) [3. Revenue and Segment Information](index=7&type=section&id=3.%20Revenue%20and%20Segment%20Information) The Group operates a single segment, primarily producing and selling cold-rolled and galvanized steel products, with revenue significantly declining - The Group operates a single business segment, primarily engaged in the production and sale of cold-rolled and galvanized steel products, mainly in China[14](index=14&type=chunk) Revenue by Product Type | Product Type | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Sales of Cold-rolled Steel Products | 341,036 | 1,737,573 | | Sales of Galvanized Steel Products | 209,050 | 1,148,899 | | Sales of Hot-rolled Steel Products and Others | 182,820 | 319,991 | | **Total Revenue** | **732,906** | **3,206,463** | - The China market (including Hong Kong) contributed over **99.6%** of revenue, with minimal contribution from Southeast Asia[16](index=16&type=chunk)[59](index=59&type=chunk) [4. Financial Income and Costs](index=8&type=section&id=4.%20Financial%20Income%20and%20Costs) Net finance costs decreased to RMB (28,663) thousand for the six months ended June 30, 2025, mainly due to lower interest expenses on borrowings Net Financial Income and Costs | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Finance Costs | (29,472) | (53,216) | | Finance Income | 809 | 1,724 | | **Net Finance Costs** | **(28,663)** | **(51,492)** | - Net finance costs decreased by **44.5%** year-on-year, primarily due to lower interest expenses on borrowings[17](index=17&type=chunk)[72](index=72&type=chunk) [5. Income Tax (Credit) Expense](index=8&type=section&id=5.%20Income%20Tax%20(Credit)%20Expense) The Group recorded an income tax credit of RMB 93,651 thousand for the period, primarily due to deferred tax credits Income Tax (Credit) Expense | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current Tax Expense | – | 3,398 | | Deferred Tax | (93,651) | (806) | | **Income Tax (Credit) Expense for the Period** | **(93,651)** | **2,592** | - Income tax for the period shifted from an expense to a credit, mainly due to a deferred tax credit of **RMB 93,651 thousand**[18](index=18&type=chunk)[73](index=73&type=chunk) [6. Profit (Loss) and Total Comprehensive (Expense) Income for the Period](index=9&type=section&id=6.%20Profit%20(Loss)%20and%20Total%20Comprehensive%20(Expense)%20Income%20for%20the%20Period) The Group reported a loss attributable to owners of RMB 523,148 thousand, a stark contrast to the prior period's profit, influenced by various expenses Profit (Loss) and Total Comprehensive (Expense) Income for the Period | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit (Loss) and Total Comprehensive (Expense) Income for the Period Attributable to Owners of the Company | (523,148) | 16,885 | | Total Employee Benefit Expenses | 57,365 | 70,288 | | Depreciation of Property, Plant and Equipment (Net) | 4,244 | 7,128 | | Depreciation of Right-of-use Assets (Net) | 2,513 | 2,587 | | Cost of Inventories Recognized as an Expense | 1,273,119 | 3,112,274 | | Loss on Disposal of Property, Plant and Equipment | 4,780 | 139 | - Total employee benefit expenses for the period decreased by **18.4%** year-on-year to **RMB 57,365 thousand**[20](index=20&type=chunk) - Cost of inventories recognized as an expense significantly decreased by **59.1%** year-on-year to **RMB 1,273,119 thousand**[20](index=20&type=chunk) [7. Earnings (Loss) Per Share](index=10&type=section&id=7.%20Earnings%20(Loss)%20Per%20Share) Basic and diluted loss per share was RMB 87.19 cents for the period, reflecting a significant deterioration in performance Earnings (Loss) Per Share | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit (Loss) for the Period Used in Calculation | (523,148) | 16,885 | | Weighted Average Number of Ordinary Shares | 600,000,000 | 600,000,000 | | **Basic and Diluted (Loss) Earnings Per Share (RMB cents)** | **(87.19)** | **2.81** | - Due to the loss incurred for the period, the dilutive effect of share options was not assumed to be exercised, as the adjusted exercise price was higher than the average market price of the shares[22](index=22&type=chunk) [8. Dividends](index=10&type=section&id=8.%20Dividends) The Board did not recommend an interim dividend for the six months ended June 30, 2025, consistent with the prior period - No interim dividend was recommended for the six months ended June 30, 2025 (June 30, 2024: nil)[23](index=23&type=chunk)[99](index=99&type=chunk) [9. Property, Plant and Equipment and Right-of-use Assets](index=11&type=section&id=9.%20Property,%20Plant%20and%20Equipment%20and%20Right-of-use%20Assets) Capital expenditures for property, plant, and equipment significantly decreased, with no new land use rights acquired during the period - For the six months ended June 30, 2025, the Group acquired property, plant and equipment and incurred construction costs of **RMB 65,139 thousand**, a significant decrease from **RMB 432,236 thousand** in the prior period[24](index=24&type=chunk) - No new land use rights were acquired during the period, compared to the acquisition of new land use rights for a cash consideration of **RMB 41,613 thousand** in the prior period[24](index=24&type=chunk) [10. Trade and Other Receivables and Bills Receivable](index=11&type=section&id=10.%20Trade%20and%20Other%20Receivables%20and%20Bills%20Receivable) Total trade and bills receivables decreased, with a shift in the aging structure of bills receivable and some transferred with full recourse Trade and Other Receivables and Bills Receivable | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables (Net) | 38,468 | 44,577 | | Bills Receivable | 61,826 | 112,592 | | Prepayments to Suppliers | 480,042 | 541,000 | | Recoverable VAT | 129,898 | 127,988 | | Other Prepayments, Deposits and Other Receivables | 137,385 | 137,511 | | **Total** | **847,619** | **963,668** | - Total bills receivable decreased from **RMB 112,592 thousand** as of December 31, 2024, to **RMB 61,826 thousand** as of June 30, 2025[25](index=25&type=chunk) - As of June 30, 2025, bills receivable of **RMB 39,449 thousand** were transferred to banks and suppliers with full recourse, and the Group continues to recognize their carrying amount[27](index=27&type=chunk)[28](index=28&type=chunk) [11. Trade and Other Payables and Accrued Expenses](index=14&type=section&id=11.%20Trade%20and%20Other%20Payables%20and%20Accrued%20Expenses) Total trade and other payables and accrued expenses decreased, with notable reductions in construction payables and other tax payables Trade and Other Payables and Accrued Expenses and Accrued Expenses | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Payables | 121,142 | 113,481 | | Bills Payable | 73,237 | 80,000 | | Accrued Staff Costs | 11,285 | 24,060 | | Construction Payables | 81,136 | 144,248 | | Other Tax Payables | 2,422 | 22,384 | | **Total** | **314,333** | **423,414** | - Aging analysis of trade payables (excluding endorsed bills) showed a significant decrease in amounts within 30 days, while amounts within 181-365 days and over 1 year increased[31](index=31&type=chunk) - Total bills payable decreased from **RMB 80,000 thousand** as of December 31, 2024, to **RMB 73,237 thousand** as of June 30, 2025[33](index=33&type=chunk) [12. Amounts Due to Related Parties](index=15&type=section&id=12.%20Amounts%20Due%20to%20Related%20Parties) Amounts due to related parties decreased to RMB 1,201 thousand, representing non-trade, interest-free, unsecured balances repayable within twelve months Amounts Due to Related Parties | Related Party | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Mr. Xu | 958 | 3,014 | | Mr. Chen Chun Niu | 243 | 163 | | **Total** | **1,201** | **3,177** | - Amounts due to related parties are non-trade in nature, interest-free, unsecured, and repayable within twelve months from their respective dates[33](index=33&type=chunk) [13. Borrowings](index=16&type=section&id=13.%20Borrowings) Total borrowings slightly decreased to RMB 2,362,062 thousand, comprising secured and unsecured bank borrowings and secured borrowings from independent entities Total Borrowings | Borrowing Type | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Fixed-rate Borrowings | 2,204,722 | 2,207,722 | | Floating-rate Borrowings | 157,340 | 302,721 | | **Total Borrowings** | **2,362,062** | **2,510,443** | - Bank borrowings due within one year decreased from **RMB 1,257,356 thousand** as of December 31, 2024, to **RMB 905,909 thousand** as of June 30, 2025[34](index=34&type=chunk) - The secured portion of the Group's borrowings is collateralized by certain assets and equity interests in a subsidiary, with some borrowings also personally guaranteed by certain directors of the Company[35](index=35&type=chunk) [14. Share Capital](index=17&type=section&id=14.%20Share%20Capital) The company's issued share capital remained unchanged at 600,000,000 shares of HKD 0.01 each, totaling RMB 4,999 thousand Share Capital Details | Metric | Number of Shares | Share Capital (HKD thousand) | | :--- | :--- | :--- | | Authorized Share Capital | 8,000,000,000 | 80,000 | | Issued Share Capital | 600,000,000 | 6,000 | | Presented in Condensed Consolidated Statement of Financial Position (RMB thousand) | - | 4,999 | [15. Share-based Payments](index=17&type=section&id=15.%20Share-based%20Payments) The number of outstanding share options decreased due to forfeiture, with 15,163,632 options remaining unexercised at HKD 2.75 each Share Option Movements | Status | Number of Share Options | | :--- | :--- | | Outstanding as of January 1, 2024 and December 31, 2024 | 25,272,720 | | Forfeited during the period | (10,109,088) | | **Outstanding as of June 30, 2025** | **15,163,632** | - As of June 30, 2025, all **15,163,632** outstanding share options were exercisable at an exercise price of **HKD 2.75** per share[41](index=41&type=chunk)[42](index=42&type=chunk) [16. Capital Commitments](index=20&type=section&id=16.%20Capital%20Commitments) Capital commitments for property, plant, and equipment decreased to RMB 100,929 thousand as of June 30, 2025 Capital Commitments | Category | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Contracted but not provided for capital expenditure for acquisition of property, plant and equipment | 100,929 | 112,074 | [17. Pledge of Assets](index=20&type=section&id=17.%20Pledge%20of%20Assets) Certain borrowings are secured by the Group's assets, with a total carrying value of RMB 1,851,117 thousand as of June 30, 2025 Carrying Value of Pledged Assets | Asset Class | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables | – | 9,259 | | Property, Plant and Equipment | 1,499,037 | 1,451,558 | | Right-of-use Assets | 222,174 | 237,239 | | Restricted Bank Deposits | 129,906 | 179,431 | | **Total** | **1,851,117** | **1,877,487** | - Certain borrowings of the Group are secured by its assets, including property, plant and equipment, right-of-use assets, and restricted bank deposits[44](index=44&type=chunk) [18. Related Party Disclosures](index=21&type=section&id=18.%20Related%20Party%20Disclosures) The Group has outstanding balances and interest expenses with related parties, with some borrowings personally guaranteed by directors - Details of outstanding balances with related parties are disclosed in the condensed consolidated statement of financial position and Note 12[45](index=45&type=chunk) Related Party Transactions | Related Party | Nature of Transaction | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | :--- | | Hua Jin Holdings Pte. Ltd | Interest Expense on Lease Liabilities | 8 | 1 | | 东方溢进有限公司 | Interest Expense on Lease Liabilities | 11 | 12 | - Certain borrowings of the Group are personally guaranteed by certain directors of the Company[47](index=47&type=chunk) Key Management Personnel Remuneration | Remuneration Type | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Salaries, Allowances and Other Benefits | 2,647 | 2,817 | | Retirement Benefit Scheme Contributions | 91 | 152 | | Share-based Payment Expenses | – | 245 | | **Total** | **2,738** | **3,214** | [Management Discussion and Analysis](index=23&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=23&type=section&id=Business%20Review) The Group, a cold-rolled steel processor, expanded into port operations, but faced significant revenue and profit declines due to market contraction and tariffs - The Group is primarily engaged in processing hot-rolled steel coils into cold-rolled and galvanized steel products, and since 2024, in port operations and related services[49](index=49&type=chunk) - Huajin Port has invested approximately **RMB 750.0 million**, with three existing berths and an expected annual throughput of over **15 million tons**[50](index=50&type=chunk) - For the six months ended June 30, 2025, revenue was approximately **RMB 732.9 million**, a **77.1%** year-on-year decrease, with a loss attributable to owners of approximately **RMB 523.1 million**[52](index=52&type=chunk) - Combined sales volume of cold-rolled and galvanized steel products decreased by **78.6%**, primarily due to punitive tariffs imposed by major global importers on steel products, leading to significant declines in downstream customers' export sales volume and average selling prices[54](index=54&type=chunk)[66](index=66&type=chunk) [Financial Review](index=26&type=section&id=Financial%20Review) The Group's financial performance deteriorated significantly, with substantial declines in revenue, gross profit, and investment income, leading to a net loss [Revenue (Financial Review)](index=26&type=section&id=Revenue_FR) Revenue significantly decreased by 77.1% to RMB 732.9 million, driven by lower sales volumes and average selling prices of steel products Revenue Details | Product Type | 2025 (RMB thousand) | 2025 (%) | 2024 (RMB thousand) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Sales of Cold-rolled Steel Products | 341,036 | 46.6 | 1,737,573 | 54.2 | | Sales of Galvanized Steel Products | 209,050 | 28.5 | 1,148,899 | 35.8 | | Sales of Hot-rolled Steel Products and Others | 182,820 | 24.9 | 319,991 | 10.0 | | **Total Revenue** | **732,906** | **100.0** | **3,206,463** | **100.0** | - Cold-rolled steel product sales volume decreased by **78.3%** to **91,262 tons**, and galvanized steel product sales volume decreased by **79.1%** to **54,232 tons**[57](index=57&type=chunk) - Average selling price of cold-rolled steel products fell from **RMB 4,137** per ton to **RMB 3,737** per ton, and galvanized steel products from **RMB 4,437** per ton to **RMB 3,855** per ton[58](index=58&type=chunk) [Cost of Sales](index=28&type=section&id=Cost%20of%20Sales) Cost of sales decreased by 59.1% to RMB 1,273.1 million, primarily due to reduced direct material costs from lower sales volumes Cost of Sales Details | Category | 2025 (RMB thousand) | 2025 (%) | 2024 (RMB thousand) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Direct Materials | 1,118,522 | 87.9 | 2,865,012 | 92.1 | | Utilities | 32,470 | 2.6 | 104,919 | 3.4 | | Direct Labor | 35,331 | 2.8 | 47,511 | 1.5 | | Depreciation Expense | 49,958 | 3.9 | 46,294 | 1.5 | | Consumables | 32,020 | 2.4 | 43,089 | 1.4 | | Others | 4,818 | 0.4 | 5,449 | 0.1 | | **Total** | **1,273,119** | **100.0** | **3,112,274** | **100.0** | - Reduced direct material costs were the primary reason for the decrease in cost of sales, accounting for **87.9%** of total cost of sales[62](index=62&type=chunk) - Depreciation expense increased by **8.0%** to **RMB 50.0 million**, mainly due to increased depreciation of property, plant and equipment[64](index=64&type=chunk) [Gross (Loss) Profit](index=29&type=section&id=Gross%20(Loss)%20Profit) The Group recorded a gross loss of RMB 540.2 million, with a gross loss margin of 73.7%, a sharp reversal from the prior period's gross profit - The Group recorded a gross loss of approximately **RMB 540.2 million**, compared to a gross profit of approximately **RMB 94.2 million** in the prior period[66](index=66&type=chunk) - The gross loss margin was approximately **73.7%**, compared to a gross profit margin of **2.9%** in the prior period, mainly due to punitive tariffs, decreased export sales volume and prices of downstream customers, delayed or cancelled orders, and failure to meet minimum off-take requirements from steel mills[66](index=66&type=chunk) [Other Income, Other Gains and Losses (Net)](index=29&type=section&id=Other%20Income,%20Other%20Gains%20and%20Losses%20(Net)) Other income, other gains and losses turned into a net loss of RMB 2.1 million, mainly due to reduced VAT credits and derivative financial instrument gains - A net loss of approximately **RMB 2.1 million** was recorded for the period, compared to a net gain of **RMB 24.5 million** in the prior period[67](index=67&type=chunk) - Key reasons include a **RMB 17.2 million** reduction in additional VAT credit deductions, a **RMB 3.0 million** decrease in gains from commodity futures contract deposits, and an approximately **RMB 4.6 million** increase in loss on disposal of property, plant and equipment[68](index=68&type=chunk) [Selling Expenses](index=30&type=section&id=Selling%20Expenses) Selling expenses decreased by 17.9% to RMB 13.8 million, primarily attributable to the significant reduction in revenue - Selling expenses decreased by approximately **RMB 3.0 million**, or **17.9%**, to **RMB 13.8 million**[69](index=69&type=chunk) [Administrative Expenses](index=30&type=section&id=Administrative%20Expenses) Administrative expenses decreased by 13.3% to RMB 32.0 million, mainly due to reductions in salaries, consumables, and entertainment expenses - Administrative expenses decreased by approximately **RMB 4.9 million**, or **13.3%**, to **RMB 32.0 million**[70](index=70&type=chunk) - The main reasons were a decrease of approximately **RMB 1.9 million** in administrative salaries and employee benefits, **RMB 1.5 million** in consumables, and **RMB 1.5 million** in entertainment expenses[70](index=70&type=chunk) [Investment Income](index=30&type=section&id=Investment%20Income) Investment income was nil for the period, compared to RMB 6.1 million in the prior period, due to reduced realized gains from commodity futures - Investment income was nil for the period, compared to approximately **RMB 6.1 million** in the prior period, mainly from realized net gains on derivative financial instruments from commodity futures contracts[71](index=71&type=chunk) [Finance Costs](index=31&type=section&id=Finance%20Costs) Finance costs decreased by 44.5% to RMB 29.5 million, primarily due to a reduction in the general interest rates on most borrowings - Finance costs decreased by approximately **RMB 23.7 million**, or **44.5%**, to **RMB 29.5 million**[72](index=72&type=chunk) - The main reason was a decrease in the general interest rates on most borrowings[72](index=72&type=chunk) [Income Tax Expense](index=31&type=section&id=Income%20Tax%20Expense) The Group recorded a deferred tax credit of RMB 93.7 million for the period, a shift from the prior period's income tax expense - A deferred tax credit of approximately **RMB 93.7 million** was recorded for the period, compared to an income tax expense of approximately **RMB 3.4 million** and a deferred tax credit of approximately **RMB 0.8 million** in the prior period[73](index=73&type=chunk) [(Loss) Profit for the Period](index=31&type=section&id=(Loss)%20Profit%20for%20the%20Period) The Group reported a loss attributable to owners of RMB 523.1 million, a significant deterioration from the prior period's profit - Loss attributable to owners of the Company was approximately **RMB 523.1 million**, compared to a profit of approximately **RMB 16.9 million** in the prior period[74](index=74&type=chunk) [Liquidity and Financial Resources](index=31&type=section&id=Liquidity%20and%20Financial%20Resources) The Group's liquidity deteriorated with reduced cash, increased net current liabilities, and higher debt-to-asset ratio, despite available unused bank facilities Key Liquidity and Financial Resources Metrics | Metric | June 30, 2025 (RMB thousand/%) | December 31, 2024 (RMB thousand/%) | | :--- | :--- | :--- | | Bank Balances and Cash | 5,200 | 35,300 | | Restricted Bank Deposits | 129,900 | 179,400 | | Net Current Liabilities | 1,096,100 | 754,500 | | Net Liabilities | 99,600 | (423,800) (Net Assets) | | Current Ratio | 48.4% | 66.4% | | Total Borrowings | 2,362,100 | 2,510,400 | | Total Assets | 3,302,500 | 3,716,700 | | Debt-to-Asset Ratio | 71.5% | 67.5% | - Bank balances and cash decreased by **85.3%** to **RMB 5.2 million**, and restricted bank deposits decreased by **27.6%** to **RMB 129.9 million**[75](index=75&type=chunk) - The Group has approximately **RMB 1,208.8 million** in unused bank financing facilities, and directors expect all utilized bank financing facilities to be renewed upon maturity[77](index=77&type=chunk) - Certain borrowings are personally guaranteed by directors, and Mr. Xu agreed to provide necessary financial support to meet financial obligations for the next fifteen months[78](index=78&type=chunk) [Foreign Exchange Risk](index=32&type=section&id=Foreign%20Exchange%20Risk) The Group faces foreign exchange risk from USD to RMB fluctuations, with some revenue and bank balances denominated in foreign currencies - The Group faces foreign exchange risk from USD to RMB fluctuations, with some revenue from overseas sales settled in USD[79](index=79&type=chunk) - Bank balances denominated in USD, HKD, and SGD also pose foreign exchange risk[79](index=79&type=chunk) - The Group currently has no foreign exchange hedging policy, but management closely monitors and considers hedging significant foreign exchange risks[79](index=79&type=chunk) [Financial Instruments](index=32&type=section&id=Financial%20Instruments) The Group did not enter into any financial instruments for hedging purposes during the period, except for commodity futures contracts - The Group did not enter into any financial instruments for hedging purposes during the reporting period, except for commodity futures contracts[80](index=80&type=chunk) [Significant Acquisitions and Disposals](index=33&type=section&id=Significant%20Acquisitions%20and%20Disposals) The Group had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period - The Group had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period[81](index=81&type=chunk) [Borrowings (MDA)](index=33&type=section&id=Borrowings_MDA) Details of the Group's borrowings as of June 30, 2025, are provided in Note 13 to the condensed consolidated financial statements - Details of the Group's borrowings as of June 30, 2025, are provided in Note 13 to the condensed consolidated financial statements[82](index=82&type=chunk) [Capital Structure](index=33&type=section&id=Capital%20Structure_MDA) Details of the Group's share capital are provided in Note 14 to the condensed consolidated financial statements - Details of the share capital are provided in Note 14 to the condensed consolidated financial statements[83](index=83&type=chunk) [Capital Commitments (MDA)](index=33&type=section&id=Capital%20Commitments_MDA) Details of the Group's capital commitments are provided in Note 16 to the condensed consolidated financial statements - Details of capital commitments are provided in Note 16 to the condensed consolidated financial statements[84](index=84&type=chunk) [Pledge of Assets (MDA)](index=33&type=section&id=Pledge%20of%20Assets_MDA) Details of the Group's pledge of assets are provided in Note 17 to the condensed consolidated financial statements - Details of pledged assets are provided in Note 17 to the condensed consolidated financial statements[85](index=85&type=chunk) [Contingent Liabilities](index=33&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no contingent liabilities other than guarantees provided to banks - The Company provided guarantees to banks as collateral for financing facilities granted to certain subsidiaries in China[86](index=86&type=chunk) - As of June 30, 2025, the Group had not provided any guarantees to third parties and had no contingent liabilities[86](index=86&type=chunk) [Employees](index=34&type=section&id=Employees) The Group's total number of full-time employees and staff costs decreased, with no share-based payment expenses recognized for the period - The Group's total number of full-time employees decreased from **1,492** as of December 31, 2024, to **1,165** as of June 30, 2025[87](index=87&type=chunk) - For the six months ended June 30, 2025, total staff costs (including directors' emoluments) were approximately **RMB 56.6 million**, a decrease from **RMB 70.3 million** in the prior period[87](index=87&type=chunk) - No share-based payment expenses were recognized for the period, compared to approximately **RMB 0.2 million** recognized in the prior period[87](index=87&type=chunk) [Future Outlook](index=34&type=section&id=Future%20Outlook) The Group is strategically transforming its business model to a diversified, integrated industrial ecosystem, leveraging its port and industrial park assets - The Group plans to build a full industry chain ecosystem, transitioning its profit model from single cold-rolled coil production and sales to a diversified and integrated approach[88](index=88&type=chunk) [1. Leveraging Port Advantages to Expand Steel Handling and Integrated Services](index=34&type=section&id=Expand%20Port%20Steel%20Handling%20and%20Integrated%20Services) Huajin Port aims to become a major Greater Bay Area hub by expanding its steel handling capacity and introducing diversified services - Huajin Port has built three **30,000-ton** berths, with an annual throughput capacity of **20 million tons**, capable of handling all types of cargo including containers, steel coils, sections, and bulk goods[89](index=89&type=chunk) - Upon reaching full capacity, an annual handling volume of **18 to 20 million tons** is expected, significantly reducing the comprehensive cost of southbound steel through one-stop services[90](index=90&type=chunk) [2. Building a Full Metal Industry Chain Processing and Warehousing Platform](index=35&type=section&id=Build%20a%20Full%20Metal%20Industry%20Chain%20Processing%20and%20Warehousing%20Platform) Huajin Industrial Park will develop a digitalized processing and warehousing platform, including a modern metal futures and spot delivery warehouse - Huajin Industrial Park has an annual processing capacity of **3 million tons**, offering integrated processing and warehousing services[91](index=91&type=chunk) - In the future, an IoT platform integrating IoT, edge computing, and AI analysis will be built to achieve full-process digital management of goods and establish a modern public warehouse for metal futures and spot regulated trade delivery in the Greater Bay Area[91](index=91&type=chunk) [3. Developing Bulk Raw Material Trade for High-Calcium Stone and Construction Aggregates](index=35&type=section&id=Develop%20Bulk%20Raw%20Material%20Trade) The Group plans to expand bulk raw material trade, leveraging port advantages for direct sourcing and long-term partnerships with steel mills - Leveraging the port's navigation capacity and **600 mu** of rear yard resources, high-calcium stone and construction aggregates will be directly sourced from quality mining areas in Guangxi[92](index=92&type=chunk) - Through a 'two-way cargo flow' model, high-calcium stone and construction aggregates will be returned to steel mills, forming long-term partnerships and expanding market coverage in key national regions[93](index=93&type=chunk) [4. Expanding Logistics and Ferrous Metal Trading Market Services](index=36&type=section&id=Expand%20Logistics%20and%20Ferrous%20Metal%20Trading%20Market%20Services) The Group is expanding its logistics and developing an integrated online and offline metal trading market, including supply chain finance - The road transportation segment has been launched, with an estimated annual demand of **6 to 10 million tons** for road transportation within the park, expected to increase business revenue and profit[94](index=94&type=chunk) - The Group will promote supply chain finance businesses such as centralized steel procurement, financing trade, and consignment sales, and build an integrated online and offline metal trading market covering all types of steel products[94](index=94&type=chunk) [5. Diversifying Trade and Import and Export Businesses](index=36&type=section&id=Layout%20Diversified%20Trade%20and%20Import%20and%20Export%20Business) The Group plans to expand import and export trade across various bulk commodities to diversify revenue streams and mitigate operational risks - Plans to expand import and export businesses, open cross-border trade channels, leveraging the **30,000-ton** berth advantage[95](index=95&type=chunk) - Gradually expanding into bulk commodity trade areas such as various steel products, stainless steel, timber, grain, white sugar, and high-calcium stone, to diversify operational risks[95](index=95&type=chunk) [6. Strategic Vision](index=37&type=section&id=Strategic%20Vision) The Group aims to become a diversified industrial group, integrating port operations, metal processing, logistics, and trade for sustainable growth - Leveraging the river-sea intermodal transport advantages of the Xijiang Golden Waterway and Yamen Estuary, to build a diversified industrial group[96](index=96&type=chunk) - Future profitability will be achieved through diversified business synergy, realizing stable and sustainable growth[96](index=96&type=chunk) [Corporate Governance and Other Information](index=37&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Directors' Rights to Acquire Shares or Debentures](index=37&type=section&id=Directors'%20Rights%20to%20Acquire%20Shares%20or%20Debentures) No arrangements existed for directors to acquire shares or debentures, other than disclosed share option interests, during the period - Other than the disclosed share option interests, no other arrangements existed during the reporting period for directors and chief executives to benefit from acquiring shares or debentures[97](index=97&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=37&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) Neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities during the six months ended June 30, 2025 - Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the reporting period[98](index=98&type=chunk) [Interim Dividend (CGA)](index=37&type=section&id=Interim%20Dividend_CGA) The Board did not recommend an interim dividend for the six months ended June 30, 2025, consistent with the prior period - The Board did not recommend an interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[99](index=99&type=chunk) [Corporate Governance Practices](index=38&type=section&id=Corporate%20Governance%20Practices) The Company adhered to all applicable code provisions of the Corporate Governance Code during the reporting period - The Company adopted the Corporate Governance Code set out in Appendix 14 of the Listing Rules and complied with all applicable code provisions for the six months ended June 30, 2025[101](index=101&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors](index=38&type=section&id=Compliance%20with%20the%20Model%20Code) All directors confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers during the reporting period - All directors confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers during the reporting period[102](index=102&type=chunk) [Sufficiency of Public Float](index=38&type=section&id=Sufficiency%20of%20Public%20Float) The Company maintained the prescribed public float as required by the Listing Rules throughout the reporting period and up to the announcement date - The Company maintained the prescribed public float as required by the Listing Rules throughout the reporting period and up to the announcement date[103](index=103&type=chunk) [Audit Committee](index=39&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, reviewed and oversaw the Group's financial reporting process - The Audit Committee comprises three independent non-executive directors, with Mr. Chan Oi Fat as chairman[104](index=104&type=chunk) - The Audit Committee is responsible for reviewing and overseeing the Group's financial reporting process[104](index=104&type=chunk) [Review of Financial Statements](index=39&type=section&id=Review%20of%20Financial%20Statements) The Audit Committee reviewed the unaudited condensed consolidated financial statements and confirmed their fair presentation in accordance with applicable accounting standards - The Audit Committee reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025[105](index=105&type=chunk) - The Audit Committee is confident that the financial statements are prepared in accordance with applicable accounting standards and fairly present the financial position and results[105](index=105&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=39&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) The interim results announcement is published on the HKEX and company websites, with the interim report to follow for shareholders - This interim results announcement has been published on the HKEX website (www.hkexnews.hk) and the Company's website (www.huajin-hk.com)[106](index=106&type=chunk) - The interim report, containing all information required by the Listing Rules, will be dispatched to shareholders and published on the aforementioned websites in due course[106](index=106&type=chunk) [Events After Reporting Period](index=39&type=section&id=Events%20After%20Reporting%20Period) Changes in company secretary appointments occurred after the reporting period, ensuring compliance with Listing Rules - Mr. Wong Chak Keung resigned as company secretary and financial controller on July 3, 2025, causing the Company to temporarily not comply with Listing Rule 3.05[108](index=108&type=chunk) - Ms. Cheung Lai King was appointed on July 7, 2025, bringing the Company back into compliance with Listing Rule 3.05[108](index=108&type=chunk) - Ms. Lam Hoi Ki was appointed as company secretary on July 10, 2025, bringing the Company back into compliance with Listing Rule 3.28[108](index=108&type=chunk) [Acknowledgement](index=41&type=section&id=Acknowledgement) The Board expressed gratitude to shareholders, customers, suppliers, directors, and staff for their support and contributions - The Board extends its sincere gratitude to shareholders, customers, suppliers, directors, and all Group colleagues[110](index=110&type=chunk)

Company Announcements This section details the interim results announcement, dividend policy, and publication of the interim report [Interim Results Announcement](index=1&type=section&id=Interim%20Results%20Announcement) The Board announces the unaudited results for the six months ended June 30, 2025, including the full interim report - The Board of Directors announces the unaudited results for the six months ended June 30, 2025[3](index=3&type=chunk) - This announcement contains the full 2025 interim report, complying with HKEX Listing Rules[3](index=3&type=chunk) [Dividend Policy](index=1&type=section&id=Dividend%20Policy) The Board does not recommend an interim dividend for the six months ended June 30, 2025 - The Board does not recommend an interim dividend for the six months ended June 30, 2025[4](index=4&type=chunk) [Report Publication](index=1&type=section&id=Report%20Publication) This announcement is published on the HKEX and company websites, with the interim report to be dispatched to shareholders and published in due course - This announcement has been published on the HKEX website (www.hkexnews.hk) and the Company's website (http://moodytech-holdingltd.com)[5](index=5&type=chunk) - The 2025 interim report, containing all information required by the Listing Rules, will be dispatched to shareholders and published on the Company's and HKEX's respective websites in due course[5](index=5&type=chunk) Company Information This section provides details on the Board of Directors, various committees, and other essential corporate information [Board of Directors](index=3&type=section&id=Board%20of%20Directors) The Board includes Executive Directors Mr. Li Wanyuan (Acting Chairman), Mr. Liu Juntin (CEO), and Ms. Chen Zhenleng (appointed July 30, 2025), alongside Independent Non-executive Directors Mr. Zhou Runzhang, Mr. Li Gang, and Mr. Guo Xianwang, with Ms. Lin Yuxi having resigned as Executive Director on July 30, 2025 - Executive Directors include Mr. Li Wanyuan (Acting Chairman), Mr. Liu Juntin (Chief Executive Officer), and Ms. Chen Zhenleng (appointed on July 30, 2025)[8](index=8&type=chunk)[9](index=9&type=chunk) - Independent Non-executive Directors are Mr. Zhou Runzhang, Mr. Li Gang, and Mr. Guo Xianwang[8](index=8&type=chunk)[9](index=9&type=chunk) - Ms. Lin Yuxi resigned as an Executive Director on July 30, 2025[8](index=8&type=chunk)[9](index=9&type=chunk) [Committees](index=3&type=section&id=Committees) The Company has an Audit Committee, Remuneration Committee, Nomination Committee, and Regulatory Compliance Committee, all composed of Board members to ensure effective corporate governance - The Audit Committee is chaired by Mr. Zhou Runzhang, with members Mr. Li Gang and Mr. Guo Xianwang[8](index=8&type=chunk)[10](index=10&type=chunk) - The Remuneration Committee is chaired by Mr. Li Gang, with members Mr. Zhou Runzhang and Mr. Guo Xianwang[8](index=8&type=chunk)[10](index=10&type=chunk) - The Nomination Committee is chaired by Mr. Li Wanyuan, with members Mr. Zhou Runzhang, Mr. Li Gang, Mr. Guo Xianwang (appointed on June 30, 2025), and Ms. Chen Zhenleng (appointed on July 30, 2025)[9](index=9&type=chunk)[10](index=10&type=chunk) - The Regulatory Compliance Committee members are Mr. Li Wanyuan and Mr. Xie Guoxing, with Mr. Li Wanyuan serving as Chairman[9](index=9&type=chunk)[10](index=10&type=chunk) [Other Corporate Information](index=4&type=section&id=Other%20Corporate%20Information) The Company's auditor is Evergreen (Hong Kong) CPA Limited, with principal bankers including Bank of Quanzhou, Bank of China (Hong Kong), and The Bank of East Asia; the Company is registered in Bermuda, with its Hong Kong place of business in Infinitus Plaza, Sheung Wan, and stock code 1400 - The auditor is Evergreen (Hong Kong) CPA Limited[11](index=11&type=chunk)[12](index=12&type=chunk) - Principal bankers include Bank of Quanzhou Co., Ltd., Bank of China (Hong Kong) Limited, and The Bank of East Asia, Limited[11](index=11&type=chunk)[12](index=12&type=chunk) - The Company's stock code is 1400, listed on The Stock Exchange of Hong Kong Limited[12](index=12&type=chunk)[13](index=13&type=chunk) Management Discussion and Analysis This section provides a comprehensive review of the Group's business, industry, financial performance, liquidity, and future outlook [Business Review](index=5&type=section&id=Business%20Review) The Group's continuing operations revenue grew **57.5% to RMB 86.4 million** from elastic webbing and online advertising, but loss attributable to owners expanded **26.4% to RMB 18.7 million** 2025 First Half Business Performance | Indicator | 2025 First Half (RMB million) | 2024 First Half (RMB million) | Year-on-Year Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue from continuing operations | 86.4 | 54.9 | 31.5 | +57.5% | | Loss attributable to owners of the Company | 18.7 | 14.8 | 3.9 | +26.4% | | Loss per share | 0.0049 | 0.0041 | 0.0008 | +19.5% | - The overall increase in revenue was primarily due to increased sales of elastic webbing products and online advertising services during the period[14](index=14&type=chunk)[18](index=18&type=chunk) [Industry Review](index=5&type=section&id=Industry%20Review) In the first half of 2025, China's industrial output grew **6.4%**, per capita clothing consumption expenditure increased **2.1%**, and retail sales of apparel, footwear, headwear, and knitwear rose **3.1%**, indicating growth in related industries - In the first half of 2025, China's industrial output grew **6.4%** year-on-year[16](index=16&type=chunk)[19](index=19&type=chunk) - In the first half of 2025, China's per capita clothing consumption expenditure increased **2.1%** year-on-year, accelerating by **0.9 percentage points** compared to the first quarter[17](index=17&type=chunk)[19](index=19&type=chunk) - Total retail sales of apparel, footwear, headwear, and knitwear increased **3.1%** year-on-year, **1.8 percentage points** higher than the same period last year[17](index=17&type=chunk)[19](index=19&type=chunk) [Financial Review](index=6&type=section&id=Financial%20Review) Continuing operations revenue grew significantly, driven by digital marketing and elastic webbing, but increased exchange losses, staff costs, and rental expenses led to an expanded loss attributable to owners [Revenue](index=6&type=section&id=Revenue) The Group's revenue from continuing operations increased **57.5% to RMB 86.4 million**, with digital marketing services revenue growing **150%** and elastic webbing products revenue growing **54.8%**, while footwear, apparel, and other sales revenue slightly decreased Revenue Breakdown by Product Category | Product Category | 2025 First Half (RMB thousand) | % of Total Revenue (2025) | 2024 First Half (RMB thousand) | % of Total Revenue (2024) | Year-on-Year Change Rate | | :--- | :--- | :--- | :--- | :--- | :--- | | Footwear, Apparel and Others | 23,773 | 27.5% | 25,061 | 45.7% | -5.1% | | Elastic Webbing | 19,170 | 22.2% | 12,418 | 22.6% | +54.4% | | Digital Marketing Services | 43,490 | 50.3% | 17,393 | 31.7% | +150.0% | | **Total** | **86,433** | **100.0%** | **54,872** | **100.0%** | **+57.5%** | - Digital marketing services revenue grew significantly, with the Group having launched four new online advertising projects[23](index=23&type=chunk)[24](index=24&type=chunk) [Cost of Sales](index=7&type=section&id=Cost%20of%20Sales) The Group's cost of sales from continuing operations increased **56.4% to approximately RMB 76.0 million** year-on-year, largely consistent with the overall revenue growth Cost of Sales Breakdown by Product Category | Product Category | 2025 First Half (RMB thousand) | % of Total Cost of Sales (2025) | 2024 First Half (RMB thousand) | % of Total Cost of Sales (2024) | Year-on-Year Change Rate | | :--- | :--- | :--- | :--- | :--- | :--- | | Footwear and Apparel | 19,419 | 25.5% | 20,711 | 42.6% | -6.2% | | Elastic Webbing | 16,627 | 21.9% | 11,821 | 24.3% | +40.6% | | Digital Marketing Services | 39,981 | 52.6% | 16,071 | 33.1% | +148.8% | | **Total** | **76,027** | **100.0%** | **48,603** | **100.0%** | **+56.4%** | [Gross Profit](index=8&type=section&id=Gross%20Profit) The Group's gross profit increased **65.9% to RMB 10.4 million** year-on-year, with the gross profit margin improving from **11.4% to 12.0%**, mainly due to reduced production costs for elastic webbing Gross Profit Breakdown by Product Category | Product Category | 2025 First Half (RMB thousand) | Gross Profit Margin (2025) | 2024 First Half (RMB thousand) | Gross Profit Margin (2024) | Year-on-Year Change Rate | | :--- | :--- | :--- | :--- | :--- | :--- | | Footwear, Apparel and Others | 4,354 | 18.3% | 4,350 | 17.4% | +0.1% | | Elastic Webbing | 2,543 | 13.3% | 597 | 4.8% | +325.9% | | Digital Marketing Services | 3,509 | 8.1% | 1,322 | 7.6% | +165.4% | | **Total** | **10,406** | **12.0%** | **6,269** | **11.4%** | **+65.9%** | - The improvement in gross profit margin was primarily due to reduced production costs for elastic webbing, including staff costs and other consumable expenses[32](index=32&type=chunk)[35](index=35&type=chunk) [Other Income/(Expenses), Net](index=8&type=section&id=Other%20Income%2F%28Expenses%29%2C%20Net) Other income from continuing operations shifted from approximately **RMB 3.8 million** net income in the first half of 2024 to approximately **RMB 2.0 million** net expenses in the first half of 2025, primarily due to an exchange loss of approximately **RMB 2.4 million** recognized in the current period Other Income/(Expenses), Net | Indicator | 2025 First Half (RMB million) | 2024 First Half (RMB million) | Change | | :--- | :--- | :--- | :--- | | Other income/(expenses), net | (2.0) | 3.8 | Shift from income to expense | | Exchange gain/(loss) | Loss 2.4 | Gain 2.4 | Shift from gain to loss | - An exchange loss of approximately **RMB 2.4 million** was the primary reason, compared to an exchange gain of approximately **RMB 2.4 million** in the same period last year[33](index=33&type=chunk)[36](index=36&type=chunk) [Selling and Distribution Costs](index=8&type=section&id=Selling%20and%20Distribution%20Costs) Selling and distribution expenses from continuing operations increased **4.3% to approximately RMB 3.9 million** year-on-year, mainly due to higher transportation and promotion costs Selling and Distribution Costs | Indicator | 2025 First Half (RMB million) | 2024 First Half (RMB million) | Year-on-Year Change Rate | | :--- | :--- | :--- | :--- | | Selling and distribution expenses | 3.9 | 3.7 | +4.3% | - The increase was attributable to higher transportation and promotion costs[34](index=34&type=chunk)[37](index=37&type=chunk) [General and Administrative Expenses](index=9&type=section&id=General%20and%20Administrative%20Expenses) General and administrative expenses from continuing operations increased **31.1% to approximately RMB 14.0 million** year-on-year, primarily due to higher staff costs from new hires and increased rental expenses General and Administrative Expenses | Indicator | 2025 First Half (RMB million) | 2024 First Half (RMB million) | Year-on-Year Change Rate | | :--- | :--- | :--- | :--- | | General and administrative expenses | 14.0 | 10.7 | +31.1% | - Primarily due to increased staff costs from new hires and higher rental expenses during the period[38](index=38&type=chunk)[43](index=43&type=chunk) [Finance Costs](index=9&type=section&id=Finance%20Costs) Finance costs from continuing operations decreased **30% to approximately RMB 0.7 million** year-on-year, mainly due to reduced accrued interest expenses on bank borrowings Finance Costs | Indicator | 2025 First Half (RMB million) | 2024 First Half (RMB million) | Year-on-Year Change Rate | | :--- | :--- | :--- | :--- | | Finance costs | 0.7 | 1.0 | -30.0% | - Primarily due to reduced accrued interest expenses on the Group's bank borrowings during the period[39](index=39&type=chunk)[44](index=44&type=chunk) [Income Tax Expense](index=9&type=section&id=Income%20Tax%20Expense) Income tax expense of approximately **RMB 7,000** from continuing operations was recognized during the period, mainly for China corporate income tax provision Income Tax Expense | Indicator | 2025 First Half (RMB thousand) | 2024 First Half (RMB thousand) | | :--- | :--- | :--- | | Income tax expense | 7 | 4 | - Primarily refers to the provision for China corporate income tax during the period[40](index=40&type=chunk)[45](index=45&type=chunk) [Loss for the Period Attributable to Owners of the Company](index=9&type=section&id=Loss%20for%20the%20Period%20Attributable%20to%20Owners%20of%20the%20Company) Due to the aforementioned factors, the loss attributable to owners of the Company increased from approximately **RMB 14.8 million** in the first half of 2024 to approximately **RMB 18.7 million** in the first half of 2025 Loss for the Period Attributable to Owners of the Company | Indicator | 2025 First Half (RMB million) | 2024 First Half (RMB million) | Year-on-Year Change Rate | | :--- | :--- | :--- | :--- | | Loss attributable to owners of the Company | 18.7 | 14.8 | +26.4% | [Liquidity and Financial Resources](index=9&type=section&id=Liquidity%20and%20Financial%20Resources) The Group faces increased liquidity pressure from decreased cash balances, higher borrowings, and lower current and quick ratios, despite prudent financial management and limited foreign exchange risk [Borrowings](index=10&type=section&id=Borrowings) The Group's total borrowings increased to approximately **RMB 131.2 million**, mainly due to new borrowings of approximately **RMB 9.2 million** raised during the period, with all borrowings denominated in RMB and HKD Total Borrowings | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Total borrowings | 131.2 | 122.2 | +9.0 | - The increase in borrowings was primarily due to new borrowings of approximately **RMB 9.2 million** raised during the period[48](index=48&type=chunk)[49](index=49&type=chunk) - All borrowings are denominated in RMB and HKD[48](index=48&type=chunk)[49](index=49&type=chunk) [Net Current Liabilities and Working Capital](index=10&type=section&id=Net%20Current%20Liabilities%20and%20Working%20Capital) The Group's net current liabilities increased, and both the current ratio and quick ratio decreased, primarily due to a reduction in trade and other receivables Liquidity Ratios | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Current assets | 69,250 | 82,207 | | Current liabilities | (316,785) | (324,476) | | Net current liabilities | (247,535) | (242,269) | | Current ratio | 21.9% | 25.3% | | Quick ratio | 8.4% | 12.9% | - The decrease in the current ratio was primarily due to a reduction in trade and other receivables[51](index=51&type=chunk)[55](index=55&type=chunk) [Foreign Exchange Risk](index=10&type=section&id=Foreign%20Exchange%20Risk) The Group primarily operates in mainland China, with most revenue and expense transactions denominated and settled in RMB, resulting in limited foreign currency exchange risk - The Group primarily operates in mainland China, with most revenue and expense transactions denominated and settled in RMB, resulting in limited foreign currency exchange risk[52](index=52&type=chunk)[56](index=56&type=chunk) [Capital Expenditure](index=10&type=section&id=Capital%20Expenditure) For the six months ended June 30, 2025, the Group did not acquire any property, plant, and equipment - For the six months ended June 30, 2025 and 2024, the Group did not acquire any property, plant, and equipment[53](index=53&type=chunk)[57](index=57&type=chunk) [Pledge of Assets](index=10&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, certain land use rights, buildings, machinery, and equipment of the Group were pledged to secure bank financing for working capital - As of June 30, 2025 and 2024, certain land use rights, buildings, machinery, and equipment of the Group were pledged to secure bank financing for working capital[54](index=54&type=chunk)[58](index=58&type=chunk) [Contingent Liabilities](index=11&type=section&id=Contingent%20Liabilities) The Group has received claims from suppliers, customers, and borrowers regarding product quality and debt repayment, but the Directors believe the Group has strong defenses and does not anticipate any material adverse impact, thus no provision has been made - The Group has received claims from suppliers, customers, and borrowers regarding product quality and debt repayment[59](index=59&type=chunk)[63](index=63&type=chunk) - The Directors believe the Group has strong defenses against these claims and does not anticipate any material adverse impact, thus no provision has been made[59](index=59&type=chunk)[63](index=63&type=chunk) [Material Investments, Acquisitions and Disposals](index=11&type=section&id=Material%20Investments%2C%20Acquisitions%20and%20Disposals) As of June 30, 2025, the Company had no specific plans or agreements for the acquisition or disposal of subsidiaries, associates, or joint ventures - As of June 30, 2025, the Company had no specific plans for the acquisition or disposal of subsidiaries, associates, or joint ventures, nor had any negotiations, agreements, arrangements, or understandings been reached in this regard[60](index=60&type=chunk)[64](index=64&type=chunk) [Future Plans for Material Investments or Capital Assets](index=11&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) The Board currently has no future plans for material investments or capital assets but will continue to monitor the industry and regularly review business expansion plans - The Board currently has no future plans for material investments or capital assets[61](index=61&type=chunk)[65](index=65&type=chunk) - The Directors will continue to observe the industry and regularly review its business expansion plans to take necessary measures that are in the best interests of the Group and its shareholders[61](index=61&type=chunk)[65](index=65&type=chunk) [Human Resources](index=11&type=section&id=Human%20Resources) As of June 30, 2025, the Group's total headcount was **173**, an increase from the end of 2024, with the Group offering competitive remuneration and fostering a learning and sharing culture through employee training and team building Employee Headcount | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total employees | 173 | 165 | - The Group offers its employees a competitive remuneration package and may grant discretionary bonuses and share options based on individual and Group performance[62](index=62&type=chunk)[66](index=66&type=chunk) - The Group is committed to fostering a learning and sharing culture within the organization, emphasizing employee training and development, as well as team building[62](index=62&type=chunk)[66](index=66&type=chunk) Other Information This section covers interim dividends, securities transactions, future outlook, post-reporting period events, and corporate governance matters [Interim Dividend](index=12&type=section&id=Interim%20Dividend) The Board has resolved not to declare any dividend for the six months ended June 30, 2025 - For the six months ended June 30, 2025, the Board has resolved not to declare any dividend (2024: nil)[67](index=67&type=chunk)[73](index=73&type=chunk) [Purchase, Sale and Redemption of the Company's Listed Securities](index=12&type=section&id=Purchase%2C%20Sale%20and%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[68](index=68&type=chunk)[74](index=74&type=chunk) [Future Outlook](index=12&type=section&id=Future%20Outlook) The Group's management is actively exploring various business opportunities in Hong Kong and China to diversify risks from loss-making businesses and improve financial performance, with future plans including further financing, maintaining sales scale for footwear, apparel, and elastic webbing, and expanding digital marketing services - Management is actively exploring various business opportunities in Hong Kong and China to diversify risks from loss-making businesses and enhance financial performance and cash flow[69](index=69&type=chunk)[75](index=75&type=chunk) - Future business plans include: (i) undertaking further financing activities; (ii) maintaining the sales scale of footwear and apparel business and elastic webbing; and (iii) further expanding the scale of digital marketing and related services[71](index=71&type=chunk)[75](index=75&type=chunk) [Events After Reporting Period](index=12&type=section&id=Events%20After%20Reporting%20Period) Except as disclosed in Note 20 of this report, no significant events that could materially affect the Group's operations and financial performance have occurred from the end of the reporting period up to the date of this report - Except as disclosed in Note 20 of this report, no significant events that could materially affect the Group's operations and financial performance have occurred from the end of the reporting period up to the date of this report[72](index=72&type=chunk)[76](index=76&type=chunk) [Disclosure of Interests in Securities](index=13&type=section&id=Disclosure%20of%20Interests%20in%20Securities) As of June 30, 2025, and the date of this interim report, no Directors or chief executives held any disclosable interests or short positions in the Company's shares, underlying shares, or debentures, nor were the Directors aware of any substantial shareholders holding such disclosable interests or short positions - As of June 30, 2025, and the date of this interim report, no Directors or chief executives of the Company held any interests or short positions in the shares, underlying shares, and debentures of the Company, any member of its Group, or any associated corporation that are required to be notified to the Company and the HKEX[77](index=77&type=chunk)[79](index=79&type=chunk) - The Directors are not aware of any person (other than a Director or chief executive of the Company) who holds or is deemed to hold interests or short positions in the shares or underlying shares that are required to be disclosed to the Company and the HKEX[77](index=77&type=chunk)[80](index=80&type=chunk) [Related Party Transactions and Connected Transactions](index=13&type=section&id=Related%20Party%20Transactions%20and%20Connected%20Transactions) During the period ended June 30, 2025, no related party transactions or connected transactions occurred within the Group - During the period ended June 30, 2025, no related party transactions or connected transactions occurred[78](index=78&type=chunk)[81](index=81&type=chunk) [Sufficiency of Public Float](index=14&type=section&id=Sufficiency%20of%20Public%20Float) As of the date of this report, the Company has maintained a sufficient public float as required by the Listing Rules, with at least **25%** of its issued share capital held by the public - As of the date of this report, the Company has maintained a sufficient public float as required by the Listing Rules, with at least **25%** of its issued share capital held by the public[83](index=83&type=chunk)[88](index=88&type=chunk) [Directors' Interests in Competing Business](index=14&type=section&id=Directors%27%20Interests%20in%20Competing%20Business) As of June 30, 2025, none of the Company's Directors or their respective associates were engaged in any business that competes or is likely to compete with the Group's business, or had any other conflicts of interest with the Group - As of June 30, 2025, none of the Company's Directors or their respective associates were engaged in any business that competes or is likely to compete with the Group's business, or had any other conflicts of interest with the Group[84](index=84&type=chunk)[89](index=89&type=chunk) [Corporate Governance](index=14&type=section&id=Corporate%20Governance) The Company is committed to maintaining high standards of corporate governance and has complied with the Corporate Governance Code, except for Code Provision C.1.8, and will continue to review and strengthen its corporate governance practices [Corporate Governance Code](index=14&type=section&id=Corporate%20Governance%20Code) For the six months ended June 30, 2025, the Company complied with the Corporate Governance Code, except for Code Provision C.1.8, which pertains to insurance arrangements for Directors' legal actions - The Company has complied with the Code Provisions set out in Appendix C1 of the Listing Rules, except for Code Provision C.1.8[85](index=85&type=chunk)[90](index=90&type=chunk) - The Company currently believes there is no need to arrange insurance for potential legal actions against Directors but will monitor the situation and take necessary actions[86](index=86&type=chunk)[91](index=91&type=chunk) [Standard Securities Dealing Code for Directors](index=15&type=section&id=Standard%20Securities%20Dealing%20Code%20for%20Directors) The Company has adopted the Standard Code as set out in Appendix C3 of the Listing Rules as the code of conduct for Directors' securities transactions, and all Directors confirm compliance with the relevant standards - The Company has adopted the Standard Code as set out in Appendix C3 of the Listing Rules as the code of conduct for Directors' dealings in the Company's securities[92](index=92&type=chunk)[95](index=95&type=chunk) - All Directors confirm that they have complied with the required standards set out in the Standard Code regarding Directors' dealings in securities during the review period[92](index=92&type=chunk)[95](index=95&type=chunk) [Audit Committee](index=15&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive Directors, is responsible for reviewing and overseeing the Group's financial reporting process, risk management, and internal control systems - The Audit Committee comprises all three independent non-executive Directors, namely Mr. Zhou Runzhang (Chairman), Mr. Li Gang, and Mr. Guo Xianwang[93](index=93&type=chunk)[96](index=96&type=chunk) - The Audit Committee is responsible for reviewing and overseeing the Group's financial reporting process and monitoring risk management and internal control systems, providing advice and recommendations to the Board[93](index=93&type=chunk)[96](index=96&type=chunk) [Remuneration Committee](index=15&type=section&id=Remuneration%20Committee) The Remuneration Committee, composed of three independent non-executive Directors, is responsible for formulating the remuneration policy and structure for Directors and senior management - The Remuneration Committee comprises three independent non-executive Directors, namely Mr. Li Gang (Chairman), Mr. Zhou Runzhang, and Mr. Guo Xianwang[94](index=94&type=chunk)[97](index=97&type=chunk) - The Remuneration Committee is primarily responsible for formulating the Group's policy and structure for the remuneration of all Directors and senior management, and providing advice and recommendations to the Board[94](index=94&type=chunk)[97](index=97&type=chunk) [Nomination Committee](index=16&type=section&id=Nomination%20Committee) The Nomination Committee, consisting of five members, is responsible for reviewing the Board's structure, identifying qualified director candidates, assessing the independence of independent non-executive directors, and advising on director appointments and succession planning - The Nomination Committee comprises five members, with Mr. Li Wanyuan as Chairman[98](index=98&type=chunk)[101](index=101&type=chunk) - The Nomination Committee is primarily responsible for reviewing the Board's structure, size, and composition, identifying suitable individuals qualified to become Board members, assessing the independence of independent non-executive Directors, and providing recommendations to the Board on Director appointments and re-appointments, as well as succession planning for Directors[98](index=98&type=chunk)[101](index=101&type=chunk) [Regulatory Compliance Committee](index=16&type=section&id=Regulatory%20Compliance%20Committee) The Regulatory Compliance Committee, composed of two members, reports directly to the Board and is primarily responsible for ensuring business operations and activities comply with relevant laws and regulations - The Regulatory Compliance Committee comprises two members, namely Mr. Li Wanyuan (Chairman) and Mr. Xie Guoxing[99](index=99&type=chunk)[102](index=102&type=chunk) - This Committee reports directly to the Board and is primarily responsible for ensuring that business operations and activities comply with relevant laws and regulations[99](index=99&type=chunk)[102](index=102&type=chunk) [Review of Interim Results](index=16&type=section&id=Review%20of%20Interim%20Results) The Group's unaudited interim results for the six months ended June 30, 2025, have been reviewed by the Audit Committee - The Group's unaudited interim results for the six months ended June 30, 2025, have been reviewed by the Audit Committee[100](index=100&type=chunk)[102](index=102&type=chunk) Condensed Consolidated Financial Statements This section presents the Group's condensed consolidated financial statements, including the statement of profit or loss, financial position, changes in equity, and cash flows [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=16&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) Despite revenue growth from continuing operations, the Group's loss for the period expanded to **RMB 18.9 million**, with **RMB 18.7 million** attributable to owners, due to increased other expenses and discontinued operations losses Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | 2025 First Half (RMB thousand) | 2024 First Half (RMB thousand) | | :--- | :--- | :--- | | Revenue | 86,433 | 54,872 | | Cost of sales | (76,027) | (48,603) | | Gross profit | 10,406 | 6,269 | | Other income/(expenses), net | (2,022) | 3,777 | | Selling and distribution costs | (3,887) | (3,725) | | General and administrative expenses | (14,012) | (10,680) | | Operating loss | (9,565) | (4,408) | | Finance costs | (664) | (1,014) | | Loss before tax | (10,229) | (5,422) | | Income tax expense | (7) | (4) | | Loss for the period from continuing operations | (10,236) | (5,426) | | Loss for the period from discontinued operations | (8,638) | (10,892) | | **Loss for the period** | **(18,874)** | **(16,318)** | | Loss for the period attributable to owners of the Company | (18,693) | (14,803) | | Basic loss per share (RMB) | 0.0049 | 0.0041 | - Revenue from continuing operations grew **57.5%**, but operating loss expanded[103](index=103&type=chunk) - Loss from discontinued operations decreased but still significantly impacted the overall loss[103](index=103&type=chunk) [Condensed Consolidated Statement of Financial Position](index=20&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's net liabilities increased to **RMB 239.7 million**, with expanded net current liabilities and reduced cash balances indicating heightened liquidity pressure Summary of Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current assets | 39,358 | 39,915 | | Current assets | 69,250 | 82,207 | | Current liabilities | (316,785) | (324,476) | | Net current liabilities | (247,535) | (242,269) | | Non-current liabilities | 31,513 | 21,024 | | **Net liabilities** | **(239,690)** | **(223,378)** | | Bank and cash balances | 4,549 | 8,267 | | Trade and other receivables | 19,661 | 26,242 | | Borrowings (current + non-current) | 131,217 | 122,160 | - Net liabilities increased from approximately **RMB 223.4 million** as of December 31, 2024, to approximately **RMB 239.7 million** as of June 30, 2025[107](index=107&type=chunk) - Net current liabilities expanded, primarily due to a decrease in current assets, especially trade and other receivables and bank and cash balances[106](index=106&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=22&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) The total equity deficit attributable to owners expanded from **RMB 230.7 million** to **RMB 247.3 million** for the six months ended June 30, 2025, primarily due to the loss incurred during the period Changes in Equity Attributable to Owners of the Company | Indicator | June 30, 2025 (RMB thousand) | January 1, 2025 (RMB thousand) | | :--- | :--- | :--- | | Equity attributable to owners of the Company | (247,327) | (230,740) | | Loss for the period | (18,693) | - | | Other comprehensive income | 2,106 | - | - The total equity deficit attributable to owners of the Company expanded from approximately **RMB 230.7 million** at the beginning of the period to approximately **RMB 247.3 million** at the end of the period[109](index=109&type=chunk) - The loss for the period of approximately **RMB 18.7 million** was the primary reason for the decrease in equity[109](index=109&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=23&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) Net cash used in operating activities was **RMB 14.0 million** and in investing activities was **RMB 1.3 million**, leading to an overall **RMB 6.3 million decrease** in cash and cash equivalents despite **RMB 9.1 million** generated from financing activities Summary of Condensed Consolidated Statement of Cash Flows | Cash Flow Category | 2025 First Half (RMB thousand) | 2024 First Half (RMB thousand) | | :--- | :--- | :--- | | Net cash used in operating activities | (14,014) | (13,249) | | Net cash used in investing activities | (1,323) | (1,805) | | Net cash generated from/(used in) financing activities | 9,057 | (14,566) | | Net decrease in cash and cash equivalents | (6,280) | (488) | | Cash and cash equivalents at end of period | 4,549 | 13,519 | - Net cash used in operating activities increased, reflecting pressure on operating cash flow[111](index=111&type=chunk) - Financing activities shifted from cash used in the prior period to cash generated in the current period, primarily due to new borrowings[111](index=111&type=chunk) Notes to the Condensed Consolidated Financial Information This section provides detailed notes to the condensed consolidated financial information, covering accounting policies, segment data, and specific financial line items [General Information](index=24&type=section&id=General%20Information) Moody Technology Holdings Limited was incorporated in the Cayman Islands and continued in Bermuda, with its shares listed on the Main Board of the Hong Kong Stock Exchange; the Group primarily engages in footwear and apparel sales, fabric and elastic webbing design, manufacturing, and sales, and digital marketing services - The Company was incorporated in the Cayman Islands on April 29, 2013, and continued in Bermuda on May 24, 2019[112](index=112&type=chunk)[115](index=115&type=chunk) - The Company's shares have been listed on the Main Board of The Stock Exchange of Hong Kong Limited since April 25, 2014[112](index=112&type=chunk)[115](index=115&type=chunk) - The Group is principally engaged in (a) sales of footwear and apparel, (b) design, manufacture, and sales of fabrics and elastic webbing, and (c) provision of digital marketing services[113](index=113&type=chunk)[115](index=115&type=chunk) [Basis of Presentation](index=25&type=section&id=Basis%20of%20Presentation) The interim condensed consolidated financial statements are prepared in accordance with IAS 34 "Interim Financial Reporting" and the HKEX Listing Rules, presented on a going concern basis, as Directors believe the Group has sufficient resources to continue operations for at least 12 months - The interim condensed consolidated financial statements have been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[116](index=116&type=chunk)[120](index=120&type=chunk) - The Group prepares its financial statements on a going concern basis, as the Directors believe it is reasonable to expect the Group to have sufficient resources to continue operations for at least 12 months from the end of the reporting period[116](index=116&type=chunk)[120](index=120&type=chunk) [Adoption of New and Revised International Financial Reporting Standards](index=25&type=section&id=Adoption%20of%20New%20and%20Revised%20International%20Financial%20Reporting%20Standards) The accounting policies used to prepare the interim condensed consolidated financial statements are consistent with those of the 2024 annual consolidated financial statements, except for the adoption of new standards effective January 1, 2024; several amendments and interpretations first applied in 2025 had no impact on the Group's interim condensed consolidated financial statements - The accounting policies adopted in preparing the interim condensed consolidated financial statements are consistent with those followed in the preparation of the 2024 annual consolidated financial statements, except for the adoption of new standards effective January 1, 2024[118](index=118&type=chunk)[121](index=121&type=chunk) - Several amendments and interpretations were first applied in 2025 but had no impact on the Group's interim condensed consolidated financial statements[119](index=119&type=chunk)[121](index=121&type=chunk) [Segment Information](index=26&type=section&id=Segment%20Information) The Group has three reportable segments: footwear, apparel, and other sales; elastic webbing sales; and digital marketing services, each managed independently with consistent accounting policies, and over **90%** of non-current assets located in China - The Group has three reportable segments: footwear, apparel, and other sales; elastic webbing sales; and provision of digital marketing services[125](index=125&type=chunk) - Each business requires different technologies and marketing strategies, so strategic business units are managed independently[122](index=122&type=chunk)[124](index=124&type=chunk) - Over **90%** of the Group's non-current assets (excluding right-of-use assets and investment in an associate) are located in China[131](index=131&type=chunk) [Revenue](index=30&type=section&id=Revenue) The Group's revenue from continuing operations primarily derives from footwear, apparel, and other sales, elastic webbing sales, and digital marketing services, with digital marketing services experiencing the fastest growth and becoming the main revenue source Revenue by Business Segment | Business Segment | 2025 First Half (RMB thousand) | 2024 First Half (RMB thousand) | | :--- | :--- | :--- | | Footwear, apparel and other sales | 23,773 | 25,061 | | Elastic webbing sales | 19,170 | 12,418 | | Digital marketing services | 43,490 | 17,393 | | **Total** | **86,433** | **54,872** | - Digital marketing services revenue grew significantly, becoming the largest source of income for the period[136](index=136&type=chunk) [Finance Costs](index=30&type=section&id=Finance%20Costs) The Group's finance costs from continuing operations primarily consist of interest expenses on borrowings, amounting to **RMB 664 thousand** for the six months ended June 30, 2025, a decrease from the prior year Finance Costs Breakdown | Item | 2025 First Half (RMB thousand) | 2024 First Half (RMB thousand) | | :--- | :--- | :--- | | Interest expense on borrowings | 664 | 1,014 | - The decrease in finance costs was primarily due to reduced interest expenses on borrowings[135](index=135&type=chunk) [Income Tax Expense](index=31&type=section&id=Income%20Tax%20Expense) Income tax expense of approximately **RMB 7,000** from continuing operations was recognized during the period, mainly for China corporate income tax provision Income Tax Expense | Item | 2025 First Half (RMB thousand) | 2024 First Half (RMB thousand) | | :--- | :--- | :--- | | Income tax expense | 7 | 4 | - Income tax expense primarily refers to the provision for China corporate income tax[137](index=137&type=chunk)[138](index=138&type=chunk) [Loss for the Period](index=31&type=section&id=Loss%20for%20the%20Period) The loss for the period is derived after deducting cost of inventories, depreciation, staff costs, provision for expected credit losses on trade receivables, and net foreign currency exchange differences, with the latter shifting from a gain to a loss, negatively impacting the period's loss Key Components of Loss for the Period | Item | 2025 First Half (RMB thousand) | 2024 First Half (RMB thousand) | | :--- | :--- | :--- | | Cost of inventories | 32,771 | 32,486 | | Depreciation of property, plant and equipment | 1,575 | 2,086 | | Depreciation of right-of-use assets | 312 | 203 | | Staff costs | 6,191 | 4,661 | | Provision for expected credit losses on trade receivables | 50 | 49 | | Net foreign currency exchange differences | 2,405 | (2,376) | - Net foreign currency exchange differences shifted from a gain in the first half of 2024 to a loss in the first half of 2025, negatively impacting the loss for the period[139](index=139&type=chunk) - Staff costs increased significantly, reflecting the Group's increase in headcount[139](index=139&type=chunk) [Loss Per Share](index=32&type=section&id=Loss%20Per%20Share) For the six months ended June 30, 2025, basic loss per share attributable to owners of the Company was **RMB 0.0049**, an increase from **RMB 0.0041** in the prior year, with diluted loss per share being the same as basic loss per share due to the absence of potential dilutive shares Loss Per Share | Indicator | 2025 First Half | 2024 First Half | | :--- | :--- | :--- | | Basic loss per share (RMB) | 0.0049 | 0.0041 | | Diluted loss per share (RMB) | 0.0049 | 0.0041 | - As there were no potential dilutive shares for the six months ended June 30, 2025 and 2024, diluted loss per share was the same as basic loss per share[141](index=141&type=chunk) [Dividends](index=33&type=section&id=Dividends) The Company neither paid nor declared any dividends for the six months ended June 30, 2025 - The Company neither paid nor declared any dividends for the six months ended June 30, 2025 (2024: nil)[142](index=142&type=chunk)[145](index=145&type=chunk) [Property, Plant and Equipment](index=33&type=section&id=Property%20%2C%20Plant%20and%20Equipment) For the six months ended June 30, 2025, the Group acquired property, plant, and equipment amounting to approximately **RMB 1.3 million**, compared to no acquisitions in the prior year Property, Plant and Equipment Acquisitions | Item | 2025 First Half (RMB million) | 2024 First Half (RMB million) | | :--- | :--- | :--- | | Acquisition amount | 1.3 | 0 | - The Group acquired property, plant, and equipment of approximately **RMB 1.3 million** in the first half of 2025[143](index=143&type=chunk)[145](index=145&type=chunk) [Right-of-Use Assets](index=33&type=section&id=Right-of-Use%20Assets) As of June 30, 2025, the Group's right-of-use assets with a carrying amount of approximately **RMB 10.3 million** were pledged as collateral for certain bank borrowings Pledged Right-of-Use Assets | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Carrying amount of pledged right-of-use assets | 10.3 | 0.5 | - The carrying amount of pledged right-of-use assets increased significantly[144](index=144&type=chunk)[145](index=145&type=chunk) [Inventories](index=33&type=section&id=Inventories) As of June 30, 2025, the Group's total inventories amounted to **RMB 42.7 million**, a slight increase from the end of 2024, with a notable increase in finished goods inventories Inventories Breakdown | Inventory Category | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Raw materials | 3,288 | 6,654 | | Work in progress | 17,078 | 21,250 | | Finished goods | 22,336 | 12,333 | | **Total** | **42,702** | **40,237** | - Finished goods inventories increased significantly, while raw materials and work-in-progress inventories decreased[147](index=147&type=chunk) [Trade and Other Receivables](index=34&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2025, the Group's total trade and other receivables amounted to **RMB 19.7 million**, a decrease from the end of 2024, primarily due to higher provisions for prepayments and other receivables Trade and Other Receivables Breakdown | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables (net) | 15,804 | 15,125 | | Prepayments (net) | 215 | 1,172 | | Other receivables (net) | 3,002 | 9,010 | | Deposits | 640 | 935 | | **Total** | **19,661** | **26,242** | - Net trade receivables slightly increased, but net prepayments and other receivables significantly decreased[148](index=148&type=chunk) Trade Receivables Ageing Analysis | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 6 months | 14,287 | 13,429 | | Over 6 months but less than 12 months | 866 | 709 | | Over 12 months | 651 | 987 | | **Total** | **15,804** | **15,125** | [Trade and Other Payables](index=35&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, the Group's total trade and other payables amounted to **RMB 212.7 million**, a slight decrease from the end of 2024, with a significant increase in interest payable and a decrease in other payables and accrued expenses Trade and Other Payables Breakdown | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade payables | 35,800 | 34,584 | | Accrued payroll | 24,622 | 26,147 | | Interest payable | 96,483 | 88,218 | | Other payables and accrued expenses | 55,843 | 70,541 | | **Total** | **212,748** | **219,490** | - Interest payable increased significantly, while other payables and accrued expenses decreased[152](index=152&type=chunk) Trade Payables Ageing Analysis | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 3 months | 5,376 | 6,780 | | Over 3 months but less than 12 months | 2,620 | 0 | | Over 12 months | 27,804 | 27,804 | | **Total** | **35,800** | **34,584** | [Borrowings](index=36&type=section&id=Borrowings) As of June 30, 2025, the Group's total borrowings were **RMB 131.2 million**, of which approximately **RMB 97.0 million** in bank borrowings were overdue, with some borrowings secured by property, plant and equipment, right-of-use assets, and corporate guarantees from non-controlling shareholders Borrowings Breakdown | Borrowing Category | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Current borrowings | 102,501 | 103,469 | | Non-current borrowings | 28,716 | 18,691 | | **Total** | **131,217** | **122,160** | - Approximately **RMB 97.0 million** of bank borrowings were overdue, resulting in penalty interest expenses[159](index=159&type=chunk)[162](index=162&type=chunk) - Some bank borrowings are secured by property, plant and equipment, right-of-use assets, and corporate guarantees provided by non-controlling shareholders[160](index=160&type=chunk)[162](index=162&type=chunk) [Share Capital](index=38&type=section&id=Share%20Capital) As of June 30, 2025, the Company's issued and fully paid share capital comprised **3,801,767 thousand** shares with a par value of **HKD 0.10**, equivalent to **RMB 336,995 thousand**, following a placement of **200,000 thousand** new shares under a general mandate in 2024 Share Capital Composition | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of authorized ordinary shares (thousand shares) | 10,000,000 | 10,000,000 | | Number of issued and fully paid ordinary shares (thousand shares) | 3,801,767 | 3,801,767 | | Issued and fully paid share capital (RMB thousand) | 336,995 | 336,995 | - On June 5, 2024, the Company completed the placement of **200,000,000** new shares[167](index=167&type=chunk)[169](index=169&type=chunk) [Capital Commitments](index=39&type=section&id=Capital%20Commitments) The Group had no capital commitments as of June 30, 2025, and December 31, 2024 - The Group had no capital commitments as of June 30, 2025, and December 31, 2024[168](index=168&type=chunk)[169](index=169&type=chunk) [Related Party Transactions](index=39&type=section&id=Related%20Party%20Transactions) During the period ended June 30, 2025, the Group did not engage in any transactions with related parties - During the periods ended June 30, 2025 and 2024, no transactions with related parties occurred[169](index=169&type=chunk) [Events After the Reporting Period](index=40&type=section&id=Events%20After%20the%20Reporting%20Period) The Group agreed to sell a fabric manufacturing subsidiary for **HKD 1** on July 29, 2025, which had a **RMB 8.6 million net loss** and **RMB 282.7 million net current liabilities**, expecting a positive impact on the Group's financial position - On July 29, 2025, the Group agreed to sell the entire equity of Moody Group (International) Company Limited, which directly and indirectly owns subsidiaries engaged in the fabric manufacturing business (the "Disposal Group"), for **HKD 1**[170](index=170&type=chunk)[171](index=171&type=chunk)[172](index=172&type=chunk) - The Disposal Group incurred a net loss of approximately **RMB 8.6 million** for the six months ended June 30, 2025[174](index=174&type=chunk)[176](index=176&type=chunk) - The Disposal Group recorded net current liabilities of approximately **RMB 282.7 million** as of June 30, 2025, including bank borrowings and accrued interest totaling approximately **RMB 200.8 million**[174](index=174&type=chunk)[176](index=176&type=chunk) - Given the Disposal Group's net liabilities position, the disposal is expected to have a positive impact on the Group's financial position[175](index=175&type=chunk)[176](index=176&type=chunk)

Company Information [Company Profile](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E6%A6%82%E5%86%B5) SuperRobotics Holdings Limited (Stock Code: 8176) is a company incorporated in the Cayman Islands and continued in Bermuda, listed on GEM of The Stock Exchange of Hong Kong Limited - Company Name: **SuperRobotics Holdings Limited**[2](index=2&type=chunk) - Stock Code: **8176**[2](index=2&type=chunk) - Listing Venue: **GEM of The Stock Exchange of Hong Kong Limited**[3](index=3&type=chunk) - Report Type: **Interim Results Announcement for the six months ended June 30, 2025**[2](index=2&type=chunk) [Characteristics of GEM and Directors' Responsibilities](index=1&type=section&id=GEM%E5%B8%82%E5%9C%BA%E7%89%B9%E8%89%B2%E4%B8%8E%E8%91%A3%E4%BA%8B%E8%B4%A3%E4%BB%BB) GEM provides a listing platform for small and medium-sized companies with high investment risk, where securities may face significant market volatility and uncertain liquidity - GEM is positioned as a listing platform for **small and medium-sized companies with high investment risk**[3](index=3&type=chunk) - GEM securities may be subject to **significant market fluctuations** and **uncertain liquidity**[3](index=3&type=chunk) - Directors confirm the information in this report is **accurate, complete, not misleading or fraudulent**, and they assume **joint and several responsibility**[3](index=3&type=chunk) Interim Results [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, revenue significantly grew by 72.8% to HK$5,129 thousand, and gross profit increased to HK$3,398 thousand, leading to a narrowed operating loss Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 5,129 | 2,968 | +72.8% | | Cost of sales | (1,731) | (1,419) | +22.0% | | Gross profit | 3,398 | 1,549 | +119.4% | | Other income | 48 | 56 | -14.3% | | Reversal of impairment loss on trade receivables recognized | 944 | 836 | +12.9% | | Loss arising from changes in fair value of financial assets at fair value through profit or loss | (254) | (823) | -69.1% | | Net other gains and losses | 1,432 | (322) | N/A | | Selling and distribution costs | (131) | (202) | -35.1% | | Administrative expenses | (5,829) | (4,261) | +36.8% | | Operating loss | (392) | (3,167) | -87.6% | | Finance costs | (11,671) | (10,992) | +6.2% | | Loss before tax | (12,063) | (14,159) | -14.8% | | Income tax expense | (145) | — | N/A | | Loss for the period | (12,208) | (14,159) | -13.8% | | Total comprehensive loss for the period | (17,179) | (14,250) | +20.6% | | Loss per share (HK Cents) – Basic and diluted | (0.92) | (1.38) | -33.3% | - The decrease in **loss for the period** was primarily attributable to **increased revenue**[44](index=44&type=chunk) [Unaudited Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%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, total assets decreased to HK$20,978 thousand, net current liabilities significantly increased to HK$171,666 thousand, and total capital deficiency expanded to HK$171,933 thousand Condensed Consolidated Statement of Financial Position (As at June 30) | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Non-current assets | 2,193 | 1,850 | +18.5% | | Current assets | 18,785 | 24,482 | -23.2% | | Total assets | 20,978 | 26,332 | -20.3% | | **Equity and Liabilities** | | | | | Capital deficiency attributable to owners of the Company | (77,345) | (77,334) | +0.01% | | Non-controlling interests | (94,588) | (84,615) | +11.8% | | Total capital deficiency | (171,933) | (161,949) | +6.2% | | Current liabilities | 190,451 | 43,058 | +342.3% | | Non-current liabilities | 2,460 | 145,223 | -98.3% | | Total liabilities | 192,911 | 188,281 | +2.5% | | Net current liabilities | (171,666) | (18,576) | +824.1% | | Net liabilities | (171,933) | (161,949) | +6.2% | - The Group recorded a **capital deficiency of approximately HK$171,933 thousand** and **net current liabilities of approximately HK$171,666 thousand** as at June 30, 2025[15](index=15&type=chunk) - These conditions indicate the existence of **material uncertainties** that may cast **significant doubt on the Group's ability to continue as a going concern**[16](index=16&type=chunk) [Unaudited Condensed Consolidated Statement of Changes in Equity](index=6&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) For the six months ended June 30, 2025, total equity further expanded to a deficit of HK$171,933 thousand, primarily due to losses and exchange differences, partially offset by new share issuance from debt capitalization Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30) | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (HK$ Thousand) | | :--- | :--- | :--- | :--- | | Share capital | 65,300 | 60,746 | +4,554 | | Share premium | 509,827 | 507,186 | +2,641 | | Contributed surplus | 38,991 | 38,991 | 0 | | Exchange fluctuation reserve | (12,156) | (11,967) | -189 | | Accumulated losses | (679,307) | (663,360) | -15,947 | | Sub-total (Attributable to owners of the Company) | (77,345) | (68,404) | -8,941 | | Non-controlling interests | (94,588) | (76,314) | -18,274 | | Total equity | (171,933) | (144,718) | -27,215 | | Loss for the period (Attributable to owners of the Company) | (5,768) | (8,396) | +2,628 | | Other comprehensive loss for the period (Attributable to owners of the Company) | (1,438) | (2,236) | +798 | | Issue of new shares by way of debt capitalization | 7,195 | — | +7,195 | [Unaudited Condensed Consolidated Statement of Cash Flows](index=7&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the six months ended June 30, 2025, net cash outflow from operating activities was HK$884 thousand, leading to a net decrease of HK$3,251 thousand in cash and cash equivalents, with the period-end balance at HK$11,026 thousand Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (HK$ Thousand) | | :--- | :--- | :--- | :--- | | Net cash (used in) / generated from operating activities | (884) | 2,539 | -3,423 | | Net cash used in investing activities | (334) | (1,778) | +1,444 | | Net cash used in financing activities | (2,033) | (2,193) | +160 | | Net decrease in cash and cash equivalents | (3,251) | (1,432) | -1,819 | | Cash and cash equivalents at beginning of period | 14,038 | 12,003 | +2,035 | | Effect of foreign exchange rate changes | 239 | (864) | +1,103 | | Cash and cash equivalents at end of period | 11,026 | 9,707 | +1,319 | Notes to the Unaudited Condensed Consolidated Financial Statements [General Information](index=8&type=section&id=%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) SuperRobotics Holdings Limited, incorporated in the Cayman Islands and continued in Bermuda, is listed on GEM, with its principal business being robotics, and financial data presented in HK$ Thousand - The Company was **incorporated in the Cayman Islands** and **continued in Bermuda** as an exempted company[12](index=12&type=chunk) - The Company's shares are **listed on GEM of The Stock Exchange of Hong Kong Limited**[12](index=12&type=chunk) - The Group's principal business is the **provision of engineering products and related services** ("robotics business")[13](index=13&type=chunk) - The interim financial information is presented in **HK$ Thousand**, which is also the Company's functional currency[13](index=13&type=chunk) [Basis of Preparation](index=8&type=section&id=%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) Interim financial information is prepared under HKAS 34 and GEM Listing Rules, with management judgments and estimates, addressing significant going concern uncertainties through new financing and operational improvements - The interim financial information has been prepared in accordance with **Hong Kong Accounting Standard 34** and the applicable disclosure requirements of the **GEM Listing Rules**[14](index=14&type=chunk) - The Group recorded a **net loss of approximately HK$12,208 thousand**, a **capital deficiency of approximately HK$171,933 thousand**, and **net current liabilities of approximately HK$171,666 thousand**, indicating **material uncertainties that may cast significant doubt on its ability to continue as a going concern**[15](index=15&type=chunk)[16](index=16&type=chunk) - Measures taken include: entering into a **new financing agreement with Huizhou Jinda Sheng Investment Co., Ltd. for approximately HK$21,924 thousand**; actively improving operating performance and net cash inflow from robotics businesses in Hong Kong and China; and continuing to **seek additional funding from external sources and/or fundraising opportunities**[18](index=18&type=chunk) - The revised **HKFRS 21 and HKFRS 1 amendments** were first applied in this interim period, with **no material impact on financial position or performance**[16](index=16&type=chunk) [Operating Segments](index=10&type=section&id=%E7%B6%93%E7%87%9F%E5%88%86%E9%83%A8) The Group operates solely in the robotics business, providing engineering products and related services, with all revenue and non-current assets originating from China and high customer concentration - The Group has **one operating segment** in both years: the **provision of engineering products and related services (robotics business)**[20](index=20&type=chunk) - For engineering products, the Group provides **robotics products**; for engineering-related services, it offers **installation, support, and maintenance services for robotics and automation system equipment**[20](index=20&type=chunk) - All of the Group's **revenue and non-current assets are derived from and located in China**[21](index=21&type=chunk) Revenue Contribution from Major Customers (For the six months ended June 30) | Customer | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Customer A | 4,754 | — | | Customer B | N/A | 522 | | Customer C | — | 2,396 | [Revenue](index=11&type=section&id=%E6%94%B6%E5%85%A5) For the six months ended June 30, 2025, total revenue was HK$5,129 thousand, primarily from engineering products and services, with a small amount from alcoholic beverage sales Revenue Composition (For the six months ended June 30) | Source of Revenue | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Provision of engineering products and related services | 5,119 | 2,968 | | Sales of alcoholic beverages | 10 | — | | **Total Revenue** | **5,129** | **2,968** | [Other Income](index=11&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A) For the six months ended June 30, 2025, other income totaled HK$48 thousand, primarily from interest income, representing a slight decrease from the prior period Other Income (For the six months ended June 30) | Source of Income | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Interest income | 47 | 56 | | Other income | 1 | — | | **Total Other Income** | **48** | **56** | [Net Other Gains and Losses](index=11&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E5%8F%8A%E8%99%A7%E6%90%8D%E6%B7%A8%E9%A1%8D) For the six months ended June 30, 2025, the Group recorded net other gains and losses of HK$1,432 thousand, primarily from gains on financial liability modification and reversal of inventory write-downs Net Other Gains and Losses (For the six months ended June 30) | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Gain on modification of financial liabilities | 728 | — | | Reversal of write-down of obsolete inventories | 723 | — | | Loss on disposal of property, plant and equipment | — | (322) | | Net exchange loss | (18) | — | | Others | (1) | — | | **Total** | **1,432** | **(322)** | [Operating Loss](index=12&type=section&id=%E7%B6%93%E7%87%9F%E8%99%A7%E6%90%8D) For the six months ended June 30, 2025, operating loss significantly narrowed to HK$392 thousand, driven by revenue growth and reduced selling and distribution costs, despite increased staff costs Components of Operating Loss (For the six months ended June 30) | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 25 | 53 | | Staff costs (including directors' emoluments): | | | | - Salaries and other allowances | 2,191 | 1,088 | | - Contributions to retirement benefit schemes | 63 | 84 | [Finance Costs](index=12&type=section&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) For the six months ended June 30, 2025, finance costs totaled HK$11,671 thousand, primarily from interest on other borrowings, representing an increase from the prior period Finance Costs (For the six months ended June 30) | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Interest on other borrowings | 11,671 | 10,992 | [Income Tax Expense](index=12&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E6%94%AF%E5%87%BA) For the six months ended June 30, 2025, the Group recorded China corporate income tax expense of HK$145 thousand, with no provision for Hong Kong profits tax or 2024 China corporate income tax due to no assessable profits - Hong Kong profits tax is provided at **16.5%**, and China corporate income tax at **25%**[27](index=27&type=chunk) Income Tax Expense (For the six months ended June 30) | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | China corporate income tax - Current tax | 145 | — | - No provision was made for Hong Kong profits tax or China corporate income tax for 2024, as **no estimated assessable profits arose in Hong Kong or China** during the respective periods[29](index=29&type=chunk) [Interim Dividend](index=12&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board does not recommend an interim dividend for the six months ended June 30, 2025, consistent with the prior corresponding period - 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) [Loss Per Share](index=13&type=section&id=%E6%AF%8F%E8%82%A1%E8%99%A7%E6%90%8D) For the six months ended June 30, 2025, basic and diluted loss per share improved to 0.92 HK Cents from 1.38 HK Cents in the prior period, with no dilutive ordinary shares issued Loss Per Share (For the six months ended June 30) | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Loss for the period attributable to owners of the Company | (5,768) | (8,396) | | Weighted average number of ordinary shares (Thousand shares) | 628,848 | 607,464 | | Basic and diluted loss per share (HK Cents) | (0.92) | (1.38) | - The Group had **no potential dilutive ordinary shares in issue** during both periods, resulting in **identical basic and diluted loss per share**[31](index=31&type=chunk) [Property, Plant and Equipment](index=13&type=section&id=%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99) For the six months ended June 30, 2025, the Group acquired approximately HK$368,800 in property, plant and equipment, with no new acquisitions in the prior corresponding period - For the six months ended June 30, 2025, the Group acquired **property, plant and equipment of approximately HK$368,800** (six months ended June 30, 2024: nil)[32](index=32&type=chunk) [Trade Receivables](index=13&type=section&id=%E6%87%89%E6%94%B6%E8%B2%BF%E6%98%93%E8%B3%A6%E6%AC%BE) As of June 30, 2025, total trade receivables were HK$5,800 thousand, a slight decrease from December 31, 2024, with most receivables within 30 days and a maximum credit period of 12 months Ageing Analysis of Trade Receivables (As at June 30) | Ageing | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | 0-30 days | 5,747 | 5,971 | | 31-60 days | — | — | | 61-90 days | — | — | | Over 90 days | 53 | 61 | | **Total** | **5,800** | **6,032** | - The Group grants customers a **credit period of up to 12 months**[33](index=33&type=chunk) [Share Capital](index=14&type=section&id=%E8%82%A1%E6%9C%AC) As of June 30, 2025, issued share capital increased to HK$65,300 thousand, primarily through the issuance of 45,537 thousand new shares to capitalize approximately HK$7,923 thousand in unsecured loans Movements in Share Capital (As at June 30) | Item | Number of shares (Thousand shares) | Amount (HK$ Thousand) | | :--- | :--- | :--- | | Issued and fully paid as at January 1, 2025 | 607,464 | 60,746 | | Issue of new shares by way of debt capitalization | 45,537 | 4,554 | | **Issued and fully paid as at June 30, 2025** | **653,001** | **65,300** | - On April 7, 2025, the Company completed the allotment and issue of **45,537,129 new shares** to fully settle outstanding unsecured loans of approximately **HK$7,923 thousand** owed to a lender[34](index=34&type=chunk) [Trade Payables](index=14&type=section&id=%E6%87%89%E4%BB%98%E8%B2%BF%E6%98%93%E8%B3%A6%E6%AC%BE) As of June 30, 2025, total trade payables significantly decreased to HK$1,293 thousand from December 31, 2024, with most payables within 30 days and a maximum supplier credit period of 120 days Ageing Analysis of Trade Payables (As at June 30) | Ageing | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | 0-30 days | 1,142 | 5,378 | | 31-60 days | — | — | | 61-90 days | — | — | | Over 90 days | 151 | 146 | | **Total** | **1,293** | **5,524** | - Suppliers typically grant a **credit period of up to 120 days**[35](index=35&type=chunk) [Commitments](index=15&type=section&id=%E6%89%BF%E6%93%94) As at June 30, 2025 and December 31, 2024, the Group had no material capital commitments - As at June 30, 2025 and December 31, 2024, the Group had **no material capital commitments**[36](index=36&type=chunk) [Major Non-Cash Transactions](index=15&type=section&id=%E4%B8%BB%E8%A6%81%E9%9D%9E%E7%8F%BE%E9%87%91%E4%BA%A4%E6%98%93) On April 7, 2025, the Group completed a major non-cash transaction by capitalizing approximately HK$7,923 thousand in unsecured loans through the issuance of new shares - On April 7, 2025, the Company completed the allotment and issue of **45,537,129 new shares** to fully settle outstanding unsecured loans of approximately **HK$7,923 thousand** owed to a lender[37](index=37&type=chunk) [Contingent Liabilities](index=15&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As at June 30, 2025 and December 31, 2024, the Group had no material contingent liabilities - As at June 30, 2025 and December 31, 2024, the Group had **no material contingent liabilities**[38](index=38&type=chunk) [Events After the Reporting Period](index=15&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) No material events occurred after the reporting period - **No material events occurred after the reporting period**[39](index=39&type=chunk) Business Review and Outlook [Business Review](index=16&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group primarily offers robotics products and engineering services, continuously developing and commercializing products, with engineering business revenue growing by 72.8% to HK$5.1 million for the six months ended June 30, 2025 - The Group primarily provides **robotics products and installation, support, and maintenance services for automation system equipment** (collectively, "engineering business")[40](index=40&type=chunk) - At the end of the period, the Group continued to **develop and improve its robotics products** and accelerate their **commercialization**[40](index=40&type=chunk) - During 2025, engineering business revenue **grew by 72.8%**, contributing approximately **HK$5.1 million** to the Group's total turnover[40](index=40&type=chunk) [Business Model](index=16&type=section&id=%E6%A5%AD%E5%8B%99%E6%A8%A1%E5%BC%8F) The Group operates in Mainland China via Shenzhen Anze Intelligent Robotics Co., Ltd., producing commercial and special-purpose robots, expanding into property management engineering services, and serving robotics companies, property firms, and public security agencies - The Group primarily operates in the Mainland China market through its controlled subsidiary, **Shenzhen Anze Intelligent Robotics Co., Ltd.** ("Anze")[41](index=41&type=chunk) - Anze utilizes AI and robotics technology to produce **commercial patrol robots** (with patrol/monitoring, autonomous navigation, AI detection and recognition functions) and **special-purpose robots** (primarily sold to public security bureaus and other government agencies for handling dangerous explosives and chemicals)[41](index=41&type=chunk) - Anze's major customers include **robotics unicorn companies, property management companies, and public security bureaus** from various provinces in Mainland China[41](index=41&type=chunk) - Anze is expanding its business scope to provide **customized equipment and robotics engineering installation services for property management companies**, applied in scenarios such as parking lot patrol monitoring, infrastructure and elevator intercom systems, community surveillance, and system integration[42](index=42&type=chunk) [Financial Review](index=17&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) During the review period, turnover grew by 72.8% to HK$5.1 million, gross profit increased to HK$3.4 million with a 66.3% margin, and net other gains and losses turned profitable at HK$1.4 million Key Financial Indicators Comparison (For the six months ended June 30) | Indicator | 2025 (HK$ Million (approx.)) | 2024 (HK$ Million (approx.)) | Change (%) | | :--- | :--- | :--- | :--- | | Turnover | 5.1 | 3.0 | +72.8% | | Gross profit | 3.4 | 1.5 | +126.7% | | Gross profit margin | 66.3% | 52.2% | +14.1pp | | Other income | 0.048 | 0.056 | -14.3% | | Net other gains and losses | 1.4 (Net income) | (0.3) (Net loss) | N/A | | Selling and distribution costs | 0.131 | 0.202 | -35.1% | | Administrative expenses | 5.8 | 4.3 | +36.8% | | Finance costs | 11.7 | 11.0 | +6.4% | | Loss attributable to owners of the Company | 5.8 | 8.4 | -31.0% | - **Net other gains and losses** recorded a **net income of approximately HK$1.4 million**, primarily comprising a **realized gain of approximately HK$700 thousand** from changes in financial liabilities and a **reversal of write-down of obsolete inventories of approximately HK$700 thousand**[43](index=43&type=chunk) - The increase in **administrative expenses** was mainly due to **higher staff costs and professional fees**[44](index=44&type=chunk) - As at June 30, 2025, the Group's **total secured borrowings** amounted to approximately **HK$150.8 million** (December 31, 2024: approximately HK$139.8 million), bearing a **fixed interest rate of 18%**[45](index=45&type=chunk) - Bank balances of approximately **HK$131 thousand were frozen** due to labor disputes[45](index=45&type=chunk) - **Total assets** were approximately **HK$21.0 million**, and **cash and cash equivalents** were approximately **HK$11.0 million**[46](index=46&type=chunk) [Share Capital](index=18&type=section&id=%E8%82%A1%E6%9C%AC) Details of the Company's share capital movements during the review period are disclosed in the unaudited condensed consolidated statement of changes in equity and Note 14 to the consolidated financial statements - Details of the Company's **share capital movements** during the review period are set out in the **unaudited condensed consolidated statement of changes in equity on page 6** and **Note 14 to the consolidated financial statements**[47](index=47&type=chunk) [Gearing Ratio](index=18&type=section&id=%E8%B3%87%E6%9C%AC%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87) The gearing ratio is not presented as the Group recorded a capital deficiency attributable to owners of the Company at the end of the reporting period - As the Group recorded a **capital deficiency attributable to owners of the Company** as at June 30, 2025 and December 31, 2024, the **gearing ratio is not presented**[48](index=48&type=chunk) [Foreign Exchange Risk](index=19&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) The Group currently does not use foreign currency derivatives to hedge foreign exchange risk, but management closely monitors it and will consider hedging when necessary - The Group **does not use any foreign currency derivative instruments to hedge its foreign exchange risk**[49](index=49&type=chunk) - Management **closely monitors this risk** and will consider **hedging when necessary**[49](index=49&type=chunk) [Employees](index=19&type=section&id=%E5%83%B1%E5%93%A1) As of June 30, 2025, the Group employed 11 staff, with total staff costs of approximately HK$2.3 million, an increase from the prior period, and remuneration is based on responsibilities, performance, experience, and industry practices - As at June 30, 2025, the Group employed **11 employees** (June 30, 2024: 12 employees)[50](index=50&type=chunk) - For the six months ended June 30, 2025, total **staff costs** amounted to approximately **HK$2.3 million** (2024: approximately HK$1.2 million)[50](index=50&type=chunk) - Remuneration, promotion, and salaries are assessed based on **job responsibilities, performance, professional experience, and current industry practices**[50](index=50&type=chunk) [Material Investments](index=19&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) For the six months ended June 30, 2025, the Group had no material investments - For the six months ended June 30, 2025, the Group had **no material investments**[51](index=51&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates and Affiliated Companies](index=19&type=section&id=%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%E3%80%81%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E5%8F%8A%E8%81%AF%E5%B1%AC%E5%85%AC%E5%8F%B8) For the six months ended June 30, 2025, the Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or affiliated companies - For the six months ended June 30, 2025, the Group **did not undertake any material acquisitions or disposals of subsidiaries, associates, or affiliated companies**[52](index=52&type=chunk) [Outlook](index=19&type=section&id=%E5%B1%95%E6%9C%9B) The Company has made significant progress in engineering and automation, launching AI development and cloud computing products in Q4 2024, and will focus on product quality, technological innovation, AI integration, and secure cloud services for sustainable growth - The Company has made **significant progress in engineering and automated production**, establishing a **strong market position**[53](index=53&type=chunk) - In the fourth quarter of 2024, the Company officially launched a **new product: AI development and cloud computing**, aiming to **capture rapidly growing market opportunities**[53](index=53&type=chunk) - In AI development, the focus will be on developing **smart solutions that enhance efficiency, reduce costs, and improve user experience**, aiming to become a **leading AI technology provider**[53](index=53&type=chunk) - In cloud computing, the commitment is to provide **efficient, secure, and flexible cloud services**, enhancing technical capabilities and service levels through **strategic partnerships**[55](index=55&type=chunk) - Going forward, the Board will continue to **increase R&D investment, strengthen market expansion, and promote diversified business development**[56](index=56&type=chunk) [Analysis of AI Development in China Market](index=20&type=section&id=%E4%B8%AD%E5%9C%8B%E5%B8%82%E5%A0%B4%E7%9A%84%E4%BA%BA%E5%B7%A5%E6%99%BA%E8%83%BD%E7%99%BC%E5%B1%95%E7%9A%84%E5%88%86%E6%9E%90) China's AI market is rapidly expanding, offering significant growth opportunities by 2030, yet companies have room to improve AI monetization, prompting the Company to focus on AI-business integration and talent development - The **China AI market is growing rapidly**, projected to bring **significant growth opportunities for key industries by 2030**[54](index=54&type=chunk) - China's current AI adoption rate is **41%**, slightly below the global average, but still holds **immense growth potential**[54](index=54&type=chunk) - Only **9% of Chinese companies achieve over 10% revenue growth through AI**, compared to 19% in leading countries[54](index=54&type=chunk) - The Company will focus on **strengthening the integration of AI technology with its business** and **enhancing AI-related talent development** to achieve greater economic benefits[54](index=54&type=chunk) [AI and Cloud Computing Development in China Market Over the Next Five Years](index=20&type=section&id=AI%20and%20Cloud%20Computing%20Development%20in%20China%20Market%20Over%20the%20Next%20Five%20Years) China's AI and cloud computing market is set for explosive growth over the next five years, with the market projected to exceed RMB2.1 trillion by 2027, driven by large models and the "East-to-West Data Transmission" project - Over the next five years, China's **AI and cloud computing market is expected to experience explosive growth**[55](index=55&type=chunk) - China's cloud computing market is projected to **exceed RMB2.1 trillion by 2027**[55](index=55&type=chunk) - China's intelligent computing capacity is expected to grow at a **CAGR of 52.3% over the next five years**[55](index=55&type=chunk) - The launch of the **"East-to-West Data Transmission" project** and the construction of intelligent computing centers will support industrial restructuring and establish **stronger computing power and algorithm infrastructure**[55](index=55&type=chunk) Other Information [Interests and Short Positions of Substantial Shareholders in the Company's Shares and Underlying Shares](index=21&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E6%96%BC%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%82%A1%E4%BB%BD%E5%8F%8A%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E4%B9%8B%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) As of June 30, 2025, Mr. Su Zhi Tuan and Tai Dong New Energy Holding Limited held 23.19% of shares, Rongke Holdings Group Limited and its associates held 19.94%, Mr. Huang Jian Hang held 13.78%, and Mr. Yang Jian Wei and Ms. Fan Yu Lan jointly held 5.04% Substantial Shareholders' Shareholdings (As at June 30, 2025) | Name of Shareholder | Nature of Interest | Number of Shares (Long Position) | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Su Zhi Tuan | Interest in controlled corporation | 151,425,197 | 23.19% | | Tai Dong New Energy Holding Limited | Beneficial owner | 151,425,197 | 23.19% | | Hong Kong Bridge Investment Limited | Beneficial owner | 41,666,666 | 6.38% | | HKBridge Absolute Return Fund, L.P | Beneficial owner | 64,148,063 | 9.82% | | On Top Global Limited | Beneficial owner | 24,397,946 | 3.74% | | Rongke Holdings Group Limited | Interest in controlled corporation | 130,212,675 | 19.94% | | Mr. Huang Jian Hang | Beneficial owner | 89,970,697 | 13.78% | | Mr. Yang Jian Wei | Beneficial owner | 32,890,681 | 5.04% | | Ms. Fan Yu Lan | Beneficial owner | 27,919,684 | 4.28% | - The percentages are calculated based on **653,000,728 shares in issue as at June 30, 2025**[59](index=59&type=chunk) [Directors' Securities Transactions](index=23&type=section&id=%E8%91%A3%E4%BA%8B%E6%89%80%E9%80%B2%E8%A1%8C%E4%B9%8B%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93) The Company adopted a code of conduct for directors' and employees' securities transactions, and all directors confirmed compliance for the six months ended June 30, 2025 - The Company has adopted its own **code of conduct for securities transactions by directors and relevant employees**, with terms **no less exacting than the required standard of dealings** set out in Rules 5.48 to 5.67 of the GEM Listing Rules[60](index=60&type=chunk) - Following specific enquiries with all Directors, they have confirmed that they have **complied with the said code of conduct and the required standard of dealings** for directors' securities transactions for the six months ended June 30, 2025[60](index=60&type=chunk) [Competing Interests](index=23&type=section&id=%E7%AB%B6%E7%88%AD%E6%AC%8A%E7%9B%8A) As of June 30, 2025, no Directors, substantial shareholders, or their close associates held any interests in businesses that materially compete or are likely to compete with the Group's business - As at June 30, 2025, none of the Directors, substantial shareholders of the Company, or any of their respective close associates had **any interest in a business that competes or is likely to compete materially with the Group's business**[61](index=61&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=23&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%B9%8B%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 purchased, sold, or redeemed any of the Company's listed securities - For the six months ended June 30, 2025, **neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities**[62](index=62&type=chunk) [Audit Committee](index=23&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee, composed of three independent non-executive directors, reviewed the Group's unaudited condensed consolidated interim results for the six months ended June 30, 2025, and provided advice - The Audit Committee was established in accordance with **Rules 5.28 to 5.29 of the GEM Listing Rules**, with its **terms of reference defined in writing**[63](index=63&type=chunk) - The Audit Committee comprises **three independent non-executive Directors**: Mr. Xu Guo Jun (Chairman), Mr. Tam Billy, and Mr. Xue Wei[63](index=63&type=chunk) - The Audit Committee has **reviewed the Group's unaudited condensed consolidated interim results** for the six months ended June 30, 2025, and provided **advice and recommendations thereon**[63](index=63&type=chunk) [Corporate Governance Code](index=23&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The Company maintains high corporate governance standards, complying with GEM Listing Rules Appendix C1, with distinct roles for Chairman and CEO, though the CEO's duties are currently handled by executive directors - The Company has implemented **corporate governance measures**, emphasizing **integrity towards shareholders, quality of information disclosure, transparency, and accountability**[64](index=64&type=chunk) - 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 C1 to the GEM Listing Rules[64](index=64&type=chunk) - The roles of the Company's Chairman and Chief Executive Officer should be **separate and not performed by the same individual**[65](index=65&type=chunk) - As at June 30, 2025 and up to the date of this report, the Company **had not appointed a Chief Executive Officer** and was in the process of identifying a suitable candidate[65](index=65&type=chunk) - The duties of the Chief Executive Officer regarding the **day-to-day management of the Group's business are handled jointly by the executive Directors**[65](index=65&type=chunk) [Board of Directors](index=24&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83) As of this announcement date, the Board of Directors consists of two executive directors (including the Chairman), one non-executive director, and three independent non-executive directors - As at the date of this announcement, the Board comprises **two executive Directors**: Mr. Su Zhen Hui (Chairman) and Mr. Feng Zheng; **one non-executive Director**: Ms. Li Jia Qi; and **three independent non-executive Directors**: Mr. Tam Billy, Mr. Xu Guo Jun, and Mr. Xue Wei[66](index=66&type=chunk)

Revenue Performance - Revenue increased by approximately 51.7% from about HKD 15.0 million for the six months ended June 30, 2024, to about HKD 22.8 million for the same period in 2025, primarily due to improved performance in the design and renovation business[16]. - The design and renovation business accounted for 100% of the total revenue of HKD 22.8 million in 2025, with no revenue generated from the financial investment business[18]. - Revenue increased from approximately HKD 15.0 million for the six months ended June 30, 2024, to approximately HKD 22.8 million for the same period in 2025, representing a growth of about 51.7%[32]. - The group reported a total revenue of HKD 22,825,000 for the six months ended June 30, 2025, representing a 51.8% increase from HKD 15,046,000 in the same period of 2024[139]. - Revenue from design and decoration services was HKD 21,262,000, up from HKD 14,250,000, indicating a growth of 49.1%[139]. Financial Performance - The loss for the six months ended June 30, 2025, was approximately HKD 15.8 million, compared to a loss of about HKD 5.3 million for the same period in 2024[22]. - The company incurred a loss of HKD 15,777,000 for the six months ended June 30, 2025, compared to a loss of HKD 5,256,000 for the same period in 2024, indicating a challenging financial environment[151]. - The company reported a net loss attributable to shareholders of HKD 15,612,000 for the period, compared to HKD 5,879,000 in the previous year[112]. - Operating loss for the period was HKD 8,951,000, up from HKD 3,919,000 in the previous year, reflecting a deterioration in operational performance[112]. - The company recorded a total comprehensive loss of HKD 15,089,000 for the six months ended June 30, 2025, compared to a loss of HKD 5,724,000 for the same period in 2024[124]. Cost and Expenses - Sales and service costs increased by approximately 87.0% to about HKD 17.1 million for the six months ended June 30, 2025, compared to the same period in 2024[20]. - Selling and administrative expenses rose to approximately HKD 17.6 million in the six months ended June 30, 2025, up from HKD 13.7 million in 2024, mainly due to increased legal, professional, and marketing expenses[21]. - Financial costs surged to HKD 7,036,000 from HKD 1,287,000, highlighting increased borrowing expenses[112]. - The company’s total operating expenses increased to HKD 8,611,000 for the six months ended June 30, 2025, from HKD 4,888,000 in the same period of 2024, marking a rise of 76.5%[177]. Assets and Liabilities - The company's cash and cash equivalents decreased to approximately HKD 25.9 million as of June 30, 2025, down about 51.7% from HKD 53.6 million as of December 31, 2024[29]. - The debt-to-asset ratio increased to approximately 111.1% as of June 30, 2025, compared to 83.9% as of December 31, 2024, primarily due to increases in borrowings and convertible bonds[30]. - Total assets as of June 30, 2025, amounted to HKD 110,761,000, compared to HKD 89,797,000 at the end of 2024, showing growth in asset base[116]. - The total liabilities increased to HKD 148,665,000 as of June 30, 2025, compared to HKD 110,887,000 as of December 31, 2024[153]. Investment Activities - The financial investment business aims to seek opportunities for capital appreciation and cash flow returns in the Hong Kong stock market and overseas derivative markets[13]. - The group holds approximately HKD 58 million in equity investments, with notable holdings including HSBC Holdings Limited and China Ping An Insurance[53]. - The largest equity investment is in CK Hutchison Holdings Limited (00001.hk) with a fair value of HKD 815 million, representing 21.0% of total investments[56]. - The group reported a loss of HKD 270 million from BYD Company Limited (01211.hk), which represents a 3.0% stake in the company[56]. Future Outlook and Strategies - The management remains optimistic about the long-term prospects of the design and renovation business despite economic uncertainties[10]. - The company plans to continue seeking new orders and clients to strengthen its customer base in the design and renovation sector[14]. - The board is optimistic about the prospects of the financial investment business, which was established for the year ending December 31, 2023, and believes it will enhance financial performance and shareholder value[10]. - The company will actively monitor its performance and implement appropriate strategies in response to economic conditions[14]. Employee and Operational Metrics - The group has approximately 38 employees as of June 30, 2025, down from 39 employees as of December 31, 2024[52]. - The company is implementing various measures to enhance its overall sales network and effective cost control to improve profit margins and operating cash flow[129]. Dividends and Shareholder Returns - The company did not declare any interim dividend for the six months ended June 30, 2025, consistent with the previous year[44]. - The company received approximately HKD 379,000 in dividends during the reporting period[73].