[Corporate Information](index=4&type=section&id=Corporate%20Information) This section provides an overview of the company's governance structure, including board members, committee compositions, and other essential corporate details [Directors](index=4&type=section&id=Directors) The company's Board of Directors comprises executive, non-executive, and independent non-executive directors, with Mr. Lu Ningjiang serving as Chairman and CEO - Executive Directors: Mr. Lu Ningjiang (Chairman and Chief Executive Officer), Ms. Wu Lixia[11](index=11&type=chunk)[13](index=13&type=chunk) - Non-Executive Director: Mr. Hu Yonggang[11](index=11&type=chunk)[13](index=13&type=chunk) - Independent Non-Executive Directors: Mr. Chan Lik Shan, Mr. So Yin Wai, Mr. Pang Mingli (appointed on June 16, 2025), Mr. Zhao Xianming (resigned on April 1, 2025)[11](index=11&type=chunk)[13](index=13&type=chunk) [Committees](index=4&type=section&id=Committees) The company has an Audit Committee, Nomination Committee, and Remuneration Committee, with membership adjustments during the reporting period due to changes in independent non-executive directors - Audit Committee Chairman: Mr. Pang Mingli (appointed on June 16, 2025), Mr. Zhao Xianming (resigned on April 1, 2025)[11](index=11&type=chunk)[13](index=13&type=chunk) - Nomination Committee Chairman: Mr. Lu Ningjiang[12](index=12&type=chunk)[13](index=13&type=chunk) - Remuneration Committee Chairman: Mr. Pang Mingli (appointed on June 16, 2025), Mr. Zhao Xianming (resigned on April 1, 2025)[12](index=12&type=chunk)[13](index=13&type=chunk) [Other Key Information](index=4&type=section&id=Other%20Key%20Information) This section lists the company's corporate secretary, authorized representatives, share registrar, website, stock code, legal advisors, principal bankers, auditor, registered office, and principal place of business in Hong Kong - Company Secretary: Mr. Li Pak Chung[11](index=11&type=chunk)[13](index=13&type=chunk) - Stock Code: **01822**[14](index=14&type=chunk)[15](index=15&type=chunk) - Auditor: Evergreen (Hong Kong) CPA Limited[14](index=14&type=chunk)[15](index=15&type=chunk) [Management Discussion and Analysis](index=6&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews the group's operational performance, financial position, and strategic outlook, highlighting key business developments and financial metrics [BUSINESS REVIEW](index=6&type=section&id=BUSINESS%20REVIEW) The Group faced challenges in H1 2025 due to a sluggish China property market, leading to a significant decline in timber-related business revenue, while actively expanding into functional food and beverage business with initial success - The China property sector continued to struggle in H1 2025, with new housing starts declining, posing severe challenges to timber consumption and the Group's operating environment[17](index=17&type=chunk)[22](index=22&type=chunk) Timber-Related Business Revenue Changes | Business Type | H1 2025 (HK$) | H1 2024 (HK$) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Timber-Related Business Revenue | 133,000,000 | 170,300,000 | -21.9% | | Processing and Distribution of Furniture Timber | 120,200,000 | 152,500,000 | -21.2% | | Manufacturing and Sales of Antique Wooden Furniture and Other Timber Products | 12,800,000 | 17,800,000 | -28.1% | - The Group established Shenzhen Weijianbao Food Technology Co., Ltd. in Q4 2024 to commence functional food and beverage business, recording revenue of approximately **HK$10,800,000** during the reporting period[28](index=28&type=chunk)[30](index=30&type=chunk) - The China functional food market is projected to grow from approximately **US$36.77 billion in 2023** to approximately **US$67.69 billion in 2030**, with a **CAGR of approximately 9.1%**[27](index=27&type=chunk)[30](index=30&type=chunk) [Discontinued Operations](index=8&type=section&id=Discontinued%20Operations) The Group disposed of its car rental services business for HK$50,000 in October 2024, which was classified as a discontinued operation in the 2024 annual report - China's car rental services business was one of the Group's core businesses from 2014 to 2024[32](index=32&type=chunk)[37](index=37&type=chunk) - The Group disposed of Hongzhi Limited and its subsidiaries, engaged in car rental business, for **HK$50,000** on October 28, 2024[33](index=33&type=chunk)[37](index=37&type=chunk) - The car rental business segment was accounted for as a discontinued operation in the 2024 annual report, with comparative figures reclassified[34](index=34&type=chunk)[37](index=37&type=chunk) [FUTURE OUTLOOK](index=8&type=section&id=FUTURE%20OUTLOOK) Given the positive performance of the food and beverage business, the Group plans to further develop its functional food and beverage business in China and consider acquiring production facilities to support its own-brand products - The Group will further develop its functional food and beverage business in China through cooperation with key industry players and intellectual property development[35](index=35&type=chunk)[38](index=38&type=chunk) - The Group is considering acquiring production facilities for its own-brand food and beverage products, but no decision or final agreement has been made as of the interim report date[36](index=36&type=chunk)[38](index=38&type=chunk) [FINANCIAL REVIEW](index=9&type=section&id=FINANCIAL%20REVIEW) The Group's revenue decreased by 15.6% during the reporting period, primarily due to the timber-related business, leading to a decline in gross profit and gross margin; while selling and distribution expenses increased due to new business growth, administrative expenses decreased due to cost-saving measures, and liquidity significantly improved with a zero gearing ratio Key Financial Metrics Changes | Metric | H1 2025 (HK$ '000) | H1 2024 (HK$ '000, restated) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 143,800 | 170,300 | -15.6% | | Cost of Sales | 131,400 | 155,200 | -15.3% | | Gross Profit | 12,400 | 15,000 | -17.3% | | Gross Margin | 8.6% | 8.8% | -0.2 percentage points | | Selling and Distribution Expenses | 1,600 | 100 | +1500% | | Administrative Expenses | 10,400 | 14,400 | -27.8% | | Finance Costs | 300 | 500 | -40.0% | - The decrease in revenue was primarily due to lower turnover from the timber-related business[39](index=39&type=chunk)[43](index=43&type=chunk) - The increase in selling and distribution expenses was mainly due to marketing efforts for the food and beverage business segment[47](index=47&type=chunk)[52](index=52&type=chunk) - The decrease in administrative expenses was primarily due to the Group's cost-saving measures[48](index=48&type=chunk)[53](index=53&type=chunk) - As of June 30, 2025, cash and cash equivalents were approximately **HK$7,300,000** (December 31, 2024: approximately HK$700,000)[51](index=51&type=chunk)[56](index=56&type=chunk) Gearing Ratio | Metric | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | | :--- | :--- | :--- | | Total Bank and Other Borrowings | – | – | | Total Assets | 113,960 | 66,700 | | Gearing Ratio | 0% | 0% | [Share Consolidation](index=11&type=section&id=Share%20Consolidation) The company implemented a share consolidation of 10 shares into 1 share on June 18, 2024 - Pursuant to a resolution passed at the Annual General Meeting on June 14, 2024, the company consolidated every 10 shares of HK$0.01 each into 1 consolidated share of HK$0.10 each[59](index=59&type=chunk)[60](index=60&type=chunk) - The share consolidation became effective on **June 18, 2024**[59](index=59&type=chunk)[60](index=60&type=chunk) [Capital structure](index=12&type=section&id=Capital%20structure) As of June 30, 2025, the total number of issued ordinary shares was 822,438,680, with a total par value of approximately HK$82.2 million, a significant increase from the end of 2024 - As of June 30, 2025, the total number of ordinary shares of the company was **822,438,680** shares of HK$0.10 each (December 31, 2024: 411,219,340 shares of HK$0.10 each)[64](index=64&type=chunk)[69](index=69&type=chunk) - The total par value was approximately **HK$82.2 million** (December 31, 2024: approximately HK$41.1 million)[64](index=64&type=chunk)[69](index=69&type=chunk) [Charges on the Group assets](index=12&type=section&id=Charges%20on%20the%20Group%20assets) As of June 30, 2025, the Group had no assets pledged - As of June 30, 2025, the Group had no assets pledged (December 31, 2024: nil)[65](index=65&type=chunk)[70](index=70&type=chunk) [Foreign currency exposure](index=12&type=section&id=Foreign%20currency%20exposure) The Group's foreign exchange risk primarily arises from transactions denominated in currencies other than RMB, but the risk of exchange rate fluctuations is not considered significant, thus no hedging activities are undertaken - Foreign exchange risk primarily arises from revenue, costs, and borrowings denominated in currencies other than the functional currency of the Group's operating units (RMB)[66](index=66&type=chunk)[71](index=71&type=chunk) - The Group does not expect the risk of exchange rate fluctuations to be significant, and therefore has not undertaken any hedging activities[66](index=66&type=chunk)[71](index=71&type=chunk) [DIVIDENDS](index=12&type=section&id=DIVIDENDS) The Board does not recommend the payment of any dividends for the reporting period - The Board does not recommend the payment of any dividends for the reporting period (H1 2024: nil)[67](index=67&type=chunk)[72](index=72&type=chunk) [EMPLOYEES AND REMUNERATION POLICY](index=12&type=section&id=EMPLOYEES%20AND%20REMUNERATION%20POLICY) As of June 30, 2025, the Group employed 32 employees, with total staff costs of approximately HK$4.4 million; the remuneration policy is based on employee performance, qualifications, and market conditions, offering various benefits - As of June 30, 2025, the Group employed a total of **32 employees**[68](index=68&type=chunk)[73](index=73&type=chunk) - Total staff costs (including directors' emoluments) for the reporting period were approximately **HK$4.4 million**[68](index=68&type=chunk)[73](index=73&type=chunk) - Remuneration policy is determined with reference to individual employee's performance, qualifications, and experience, the Group's performance, and market conditions[68](index=68&type=chunk)[73](index=73&type=chunk) - The Group provides employees with discretionary bonuses, medical insurance, provident fund contributions, education allowances, and training[68](index=68&type=chunk)[73](index=73&type=chunk) [Other Information](index=13&type=section&id=Other%20Information) This section details shareholding interests, corporate governance practices, and other statutory disclosures, including director and substantial shareholder holdings [DIRECTORS' AND CHIEF EXECUTIVE'S INTERESTS AND SHORT POSITIONS IN THE SHARES, UNDERLYING SHARES AND DEBENTURES OF THE COMPANY OR ITS ASSOCIATED CORPORATIONS](index=13&type=section&id=DIRECTORS'%20AND%20CHIEF%20EXECUTIVE'S%20INTERESTS%20AND%20SHORT%20POSITIONS%20IN%20THE%20SHARES,%20UNDERLYING%20SHARES%20AND%20DEBENTURES%20OF%20THE%20COMPANY%20OR%20ITS%20ASSOCIATED%20CORPORATIONS) As of June 30, 2025, Mr. Lu Ningjiang, Chairman and CEO, held a **54.98% long position** in the company's shares through a controlled corporation Directors' Long Positions in the Company's Shares | Director's Name | Capacity/Nature of Interest | Total Number of Shares and Underlying Shares Held | Approximate Percentage of the Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Lu Ningjiang | Interest in controlled corporation | 452,169,170 (L) | 54.98% | - Mr. Lu Ningjiang beneficially owns the entire equity interest in Right Momentum Group Limited and is therefore deemed to be interested in the shares held by it[81](index=81&type=chunk) [SUBSTANTIAL SHAREHOLDERS' AND OTHER PERSONS' INTERESTS AND SHORT POSITIONS IN SHARES, UNDERLYING SHARES AND DEBENTURES OF THE COMPANY](index=15&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, substantial shareholders included Right Momentum Group Limited (controlled by Mr. Lu Ningjiang) and Mr. Zhang Zhengwu, holding **54.98%** and **6.59%** long positions in the company's shares, respectively Substantial Shareholders' Long Positions in Shares | Name of Substantial Shareholder/Person | Capacity/Nature of Interest | Total Number of Shares and Underlying Shares Held | Approximate Percentage of the Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Right Momentum | Beneficial owner | 452,196,170 (L) | 54.98% | | Zhang Zhengwu | Beneficial owner | 54,221,153 (L) | 6.59% | - The entire issued share capital of Right Momentum is **100% owned by Mr. Lu**[84](index=84&type=chunk) [SHARE OPTION SCHEME](index=16&type=section&id=SHARE%20OPTION%20SCHEME) The company's existing share option scheme, adopted in 2016, aims to reward eligible participants for their contributions to the Group's success and is valid until June 2026; no share options were granted or outstanding during the reporting period - The share option scheme was adopted on **June 3, 2016**, and is valid for **10 years**, until June 2, 2026[86](index=86&type=chunk)[90](index=90&type=chunk) - Eligible participants include employees, executives, suppliers, customers, consultants, and other individuals or entities who have contributed to the Group's development[87](index=87&type=chunk)[90](index=90&type=chunk) - The total number of shares that may be issued under the share option scheme is **3,240,687 shares**, representing **0.39%** of the total issued shares as of June 30, 2025[92](index=92&type=chunk)[95](index=95&type=chunk) - No share options were granted or outstanding under the share option scheme during the reporting period[93](index=93&type=chunk)[96](index=96&type=chunk) [ARRANGEMENTS TO PURCHASE SHARES OR DEBENTURES](index=17&type=section&id=ARRANGEMENTS%20TO%20PURCHASE%20SHARES%20OR%20DEBENTURES) During the reporting period, no rights to acquire shares or debentures of the company were granted to or exercised by any director or their associates, nor was the company a party to any such arrangements - During the reporting period, no rights to acquire benefits by way of acquisition of shares or debentures of the company were granted to any director or their respective spouses or minor children, nor were any such rights exercised by them[94](index=94&type=chunk)[97](index=97&type=chunk) - Neither the company nor any of its subsidiaries was a party to any arrangement to enable directors to acquire such rights in any other body corporate[94](index=94&type=chunk)[97](index=97&type=chunk) [MODEL CODE FOR SECURITIES TRANSACTIONS BY DIRECTORS](index=18&type=section&id=MODEL%20CODE%20FOR%20SECURITIES%20TRANSACTIONS%20BY%20DIRECTORS) The company has adopted the Model Code, and all directors confirmed compliance with it during the reporting period - The company has adopted the Model Code as its code for directors' dealings in the company's securities[98](index=98&type=chunk)[102](index=102&type=chunk) - All directors confirmed compliance with the required standards set out in the Model Code throughout the reporting period[98](index=98&type=chunk)[102](index=102&type=chunk) [PURCHASE, REDEMPTION OR SALE OF LISTED SECURITIES OF THE COMPANY](index=18&type=section&id=PURCHASE,%20REDEMPTION%20OR%20SALE%20OF%20LISTED%20SECU RITIES%20OF%20THE%20COMPANY) During the reporting period, neither the company nor any of its subsidiaries purchased, redeemed, or sold any of the company's listed securities - During the reporting period, neither the company nor any of its subsidiaries purchased, redeemed, or sold any of the company's listed securities[99](index=99&type=chunk)[103](index=103&type=chunk) [CORPORATE GOVERNANCE](index=18&type=section&id=CORPORATE%20GOVERNANCE) The company generally complied with the Corporate Governance Code during the reporting period, with two deviations: a non-executive director's absence from the AGM and the combined roles of Chairman and CEO - The company has complied with the Corporate Governance Code throughout the reporting period, with the following two exceptions[100](index=100&type=chunk)[104](index=104&type=chunk) - Non-executive Director Mr. Hu Yonggang was unable to attend the Annual General Meeting held on May 23, 2025, deviating from Code Provision C.1.5[100](index=100&type=chunk)[104](index=104&type=chunk) - The roles of Chairman and Chief Executive Officer are both held by Mr. Lu Ningjiang, deviating from Code Provision C.2.1, which the Board believes enhances efficiency in business strategy formulation and execution[101](index=101&type=chunk)[104](index=104&type=chunk) [INDEPENDENT NON-EXECUTIVE DIRECTORS](index=19&type=section&id=INDEPENDENT%20NON-EXECUTIVE%20DIRECTORS) Due to the resignation of Independent Non-Executive Director Mr. Zhao Xianming, the company failed to meet Listing Rule requirements regarding the number of INEDs and Audit Committee composition from April 1 to June 15, 2025, but subsequently regained compliance with the appointment of Mr. Pang Mingli - From April 1 to June 15, 2025, the company failed to comply with Listing Rules 3.10(1) (at least three independent non-executive directors) and 3.21 (Audit Committee with at least three non-executive members)[105](index=105&type=chunk)[107](index=107&type=chunk) - This was due to the resignation of Independent Non-Executive Director Mr. Zhao Xianming on April 1, 2025[105](index=105&type=chunk)[106](index=106&type=chunk) - On June 16, 2025, Mr. Pang Mingli was appointed as an Independent Non-Executive Director, and the company subsequently complied with the aforementioned Listing Rules[105](index=105&type=chunk)[106](index=106&type=chunk) [AUDIT COMMITTEE REVIEW](index=20&type=section&id=AUDIT%20COMMITTEE%20REVIEW) The Audit Committee has reviewed the accounting principles adopted by the Group and the unaudited condensed consolidated interim financial statements - The Audit Committee comprises three independent non-executive directors: Mr. Pang Mingli (Chairman), Mr. Chan Lik Shan, and Mr. So Yin Wai[108](index=108&type=chunk)[111](index=111&type=chunk) - The Audit Committee has reviewed with management the accounting principles adopted by the Group and the unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025[108](index=108&type=chunk)[111](index=111&type=chunk) [EVENTS AFTER THE REPORTING PERIOD](index=20&type=section&id=EVENTS%20AFTER%20THE%20REPORTING%20PERIOD) The Group had no other significant events after the reporting period - The Group had no other significant events after the reporting period[109](index=109&type=chunk)[112](index=112&type=chunk) [COMPARATIVE FIGURES](index=20&type=section&id=COMPARATIVE%20FIGURES) Comparative figures in the unaudited condensed consolidated interim financial statements have been reclassified to separately disclose discontinued operations from continuing operations - Comparative figures in the unaudited condensed consolidated interim financial statements have been reclassified to separately disclose discontinued operations from continuing operations[110](index=110&type=chunk)[113](index=113&type=chunk) [APPRECIATION](index=20&type=section&id=APPRECIATION) The Board expresses its gratitude for the support and efforts of its customers, shareholders, and employees - The Board takes this opportunity to express its appreciation for the long-term support from customers and shareholders and the dedicated efforts of its employees[114](index=114&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=21&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 [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=21&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group recorded a loss for the period of **HK$929 thousand**, a significant narrowing from the prior year (HK$2,361 thousand), primarily due to reduced losses from continuing operations and no longer incurring losses from discontinued operations Overview of Profit or Loss and Other Comprehensive Income | Metric | H1 2025 (HK$ '000) | H1 2024 (HK$ '000, restated) | | :--- | :--- | :--- | | Revenue (continuing operations) | 143,776 | 170,268 | | Cost of Sales | (131,416) | (155,244) | | Gross Profit | 12,360 | 15,024 | | Operating Profit | 596 | 552 | | Profit Before Tax | 269 | 44 | | Income Tax Expense | (1,198) | (1,809) | | Loss for the period from continuing operations | (929) | (1,765) | | Loss for the period from discontinued operations | – | (596) | | Loss for the period | (929) | (2,361) | | Total comprehensive loss for the period | (615) | (2,294) | Loss Per Share | Metric | H1 2025 (HK cents) | H1 2024 (HK cents, restated) | | :--- | :--- | :--- | | Basic loss per share (continuing and discontinued operations) | (0.13) | (0.47) | | Basic loss per share (continuing operations) | (0.13) | (0.35) | | Basic loss per share (discontinued operations) | Not applicable | (0.12) | [Unaudited Condensed Consolidated Statement of Financial Position](index=23&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets increased to **HK$113,960 thousand** and net assets increased to **HK$83,523 thousand**, primarily driven by significant increases in prepayments, deposits, and other receivables, as well as cash and bank balances Overview of Financial Position | Metric | June 30, 2025 (HK$ '000, unaudited) | December 31, 2024 (HK$ '000, audited) | | :--- | :--- | :--- | | Non-current Assets | 11,945 | 8,555 | | Current Assets | 102,015 | 58,145 | | Inventories | 1,267 | 1,173 | | Trade Receivables | 123 | 1,653 | | Prepayments, Deposits and Other Receivables | 93,342 | 54,613 | | Cash and Bank Balances | 7,283 | 706 | | Current Liabilities | 29,073 | 23,443 | | Trade Payables | 2,858 | 2,763 | | Other Payables and Accruals | 19,921 | 14,888 | | Net Current Assets | 72,942 | 34,702 | | Net Assets / Total Equity | 83,523 | 39,235 | [Unaudited Condensed Consolidated Statement of Changes in Equity](index=24&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) As of June 30, 2025, total equity attributable to owners of the company increased to **HK$83,523 thousand**, mainly due to a net amount of **HK$44,903 thousand** from the issuance of new shares after the rights issue Overview of Changes in Equity | Metric | January 1, 2025 (HK$ '000, audited) | June 30, 2025 (HK$ '000, unaudited) | | :--- | :--- | :--- | | Share Capital | 41,122 | 82,244 | | Share Premium | 136,339 | 140,120 | | Exchange Fluctuation Reserve | (3,947) | (3,633) | | Accumulated Losses | (134,279) | (135,208) | | **Total Equity** | **39,235** | **83,523** | - Net proceeds from the issuance of new shares after the rights issue amounted to **HK$44,903 thousand**[119](index=119&type=chunk) - Loss for the period was **HK$929 thousand**, and exchange fluctuation reserve increased by **HK$314 thousand**[119](index=119&type=chunk) [Unaudited Condensed Consolidated Statement of Cash Flows](index=26&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, the Group generated net cash outflow from operating activities, but financing activities generated significant net cash inflow due to the rights issue, ultimately leading to a substantial increase in cash and cash equivalents at period-end Overview of Cash Flows | Metric | H1 2025 (HK$ '000, unaudited) | H1 2024 (HK$ '000, unaudited) | | :--- | :--- | :--- | | Net cash used in operating activities | (27,915) | (3,759) | | Net cash used in investing activities | (5,989) | – | | Net cash generated from financing activities | 42,217 | 882 | | **Net increase in cash and cash equivalents** | **8,313** | **(2,877)** | | Cash and cash equivalents at beginning of period | 706 | 3,522 | | Effect of foreign exchange rate changes | (1,736) | 56 | | **Cash and cash equivalents at end of period** | **7,283** | **701** | - Net cash generated from financing activities primarily resulted from proceeds of **HK$44,903 thousand** from the issuance of new shares after the rights issue[122](index=122&type=chunk) [Notes to the Unaudited Condensed Consolidated Interim Financial Statements](index=27&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Interim%20Financial%20Statements) This section provides detailed notes to the unaudited condensed consolidated interim financial statements, explaining accounting policies, segment information, and key financial items [1. CORPORATE INFORMATION](index=27&type=section&id=1.%20CORPORATE%20INFORMATION) This note confirms the company's place of incorporation, listing location, and its principal businesses, including timber-related business and functional food and beverage business in China - The company was incorporated in the Cayman Islands, and its shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited[123](index=123&type=chunk)[124](index=124&type=chunk)[127](index=127&type=chunk) - The Group is principally engaged in (i) timber-related business (including processing and distribution of furniture timber and manufacturing and sales of antique wooden furniture and other timber products); and (ii) food and beverage business in China[125](index=125&type=chunk)[127](index=127&type=chunk) [2. BASIS OF PREPARATION](index=27&type=section&id=2.%20BASIS%20OF%20PREPARATION) These interim financial statements are prepared in accordance with HKAS 34 and the Listing Rules, consistent with prior year accounting policies; despite liquidity pressure, management has taken steps and secured financial support from the ultimate controlling party to maintain going concern - The unaudited condensed consolidated interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of the Listing Rules of the Stock Exchange[126](index=126&type=chunk)[128](index=128&type=chunk) - The Group recorded a loss of approximately **HK$929 thousand** and net cash outflow from operating activities of approximately **HK$27,915 thousand** during the reporting period, with relatively low cash and bank balances (approximately HK$7,283 thousand), significantly lower than current liabilities (approximately HK$29,073 thousand)[131](index=131&type=chunk)[135](index=135&type=chunk) - To mitigate liquidity pressure, management will improve operating cash flow by controlling administrative costs and capital expenditures, and the ultimate controlling party has agreed to provide financial support[132](index=132&type=chunk)[135](index=135&type=chunk) - The Board believes that the Group has sufficient financial resources to meet its debt repayments and financing needs for its operations in the foreseeable future, thus preparing the financial statements on a going concern basis is appropriate[136](index=136&type=chunk)[138](index=138&type=chunk) [3. OPERATING SEGMENT INFORMATION](index=29&type=section&id=3.%20OPERATING%20SEGMENT%20INFORMATION) The Group's operating segments include timber-related business, financing services and investments, and food and beverage business; the car rental business was disposed of in October 2024 and classified as a discontinued operation, with China being the Group's primary source of revenue - The Group's reportable operating segments are: (a) timber-related business segment; (b) financing services and investment segment; and (c) food and beverage segment[140](index=140&type=chunk) - The car rental business was disposed of on October 28, 2024, and has been accounted for as a discontinued operation in the interim financial statements[141](index=141&type=chunk)[142](index=142&type=chunk)[145](index=145&type=chunk) Segment Revenue (Sales of Goods) | Segment | H1 2025 (HK$ '000) | H1 2024 (HK$ '000) | | :--- | :--- | :--- | | Timber-related business | 132,984 | 170,268 | | Food and beverage | 10,792 | – | | **Total continuing operations** | **143,776** | **170,268** | Revenue by Geographical Location (Continuing Operations) | Region | H1 2025 (HK$ '000) | H1 2024 (HK$ '000, restated) | | :--- | :--- | :--- | | China | 130,941 | 152,425 | | Hong Kong | 12,835 | 17,843 | | **Total** | **143,776** | **170,268** | - During the reporting period, the Group did not record any customers with revenue amounting to **10% or more** of the Group's total revenue[152](index=152&type=chunk)[154](index=154&type=chunk) [4. REVENUE](index=33&type=section&id=4.%20REVENUE) The Group's revenue from continuing operations is entirely derived from the sale of goods, recognized at a point in time, primarily from the China market Disaggregation of Revenue from Contracts with Customers by Major Product or Service Line | Product or Service Line | H1 2025 (HK$ '000) | H1 2024 (HK$ '000) | | :--- | :--- | :--- | | Sale of goods | 143,776 | 170,268 | - All revenue is recognized at a point in time, primarily from the China market[159](index=159&type=chunk) [5. FINANCE COSTS](index=34&type=section&id=5.%20FINANCE%20COSTS) Finance costs for continuing operations primarily include interest on lease liabilities and bank charges, totaling **HK$327 thousand** in H1 2025, down from HK$508 thousand in H1 2024 Breakdown of Finance Costs | Item | H1 2025 (HK$ '000) | H1 2024 (HK$ '000, restated) | | :--- | :--- | :--- | | Interest on lease liabilities | 326 | 505 | | Bank charges | 1 | 3 | | **Total** | **327** | **508** | [6. PROFIT BEFORE TAX](index=34&type=section&id=6.%20PROFIT%20BEFORE%20TAX) The Group's profit before tax from continuing operations is derived after deducting cost of sales, depreciation, research and development costs, and other lease expenses; notably, **HK$2,021 thousand** in research and development costs were incurred in H1 2025 Items Deducted from Profit Before Tax | Item | H1 2025 (HK$ '000) | H1 2024 (HK$ '000, restated) | | :--- | :--- | :--- | | Cost of sales | 131,446 | 155,244 | | Depreciation of property, plant and equipment | 223 | 33 | | Depreciation of right-of-use assets | 2,389 | 2,637 | | Research and development costs | 2,021 | – | | Other lease expenses | 26 | 70 | - All research and development costs are expensed to profit or loss as incurred[165](index=165&type=chunk) [7. INCOME TAX EXPENSE](index=35&type=section&id=7.%20INCOME%20TAX%20EXPENSE) Income tax expense for continuing operations primarily consists of China corporate income tax, provided at a rate of **25%**, amounting to **HK$1,198 thousand** in H1 2025 Breakdown of Income Tax Expense | Item | H1 2025 (HK$ '000) | H1 2024 (HK$ '000) | | :--- | :--- | :--- | | Current - China corporate income tax | 1,198 | 1,809 | - China corporate income tax is provided at a rate of **25%**[169](index=169&type=chunk)[171](index=171&type=chunk) - No provision for Hong Kong profits tax or any other taxes has been made in the unaudited condensed consolidated interim financial statements[168](index=168&type=chunk)[171](index=171&type=chunk) [8. DIVIDEND](index=35&type=section&id=8.%20DIVIDEND) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (H1 2024: nil)[170](index=170&type=chunk)[172](index=172&type=chunk) [9. DISCONTINUED OPERATIONS](index=36&type=section&id=9.%20DISCONTINUED%20OPERATIONS) This note details the results and cash flows of the discontinued car rental business for H1 2024, which was disposed of in October 2024 - The Group entered into a sale and purchase agreement on October 28, 2024, to dispose of the disposal group (car rental business) to an independent third party[173](index=173&type=chunk) Overview of Discontinued Operations Results (H1 2024) | Item | Amount (HK$ '000) | | :--- | :--- | | Revenue - other sources | 4,822 | | Cost of services provided | (4,327) | | Selling expenses | (1) | | Administrative expenses | (400) | | Finance costs | (690) | | Loss before tax | (596) | | Income tax expense | – | | **Loss for the period** | **(596)** | Net Cash Flows from Discontinued Operations (H1 2024) | Item | Amount (HK$ '000) | | :--- | :--- | | Net cash inflow from operating activities | 506 | | Net cash flow from investing activities | – | | Net cash outflow from financing activities | (189) | | **Net cash inflow** | **317** | [10. LOSS PER SHARE](index=37&type=section&id=10.%20LOSS%20PER%20SHARE) This note details the calculation of basic loss per share, including losses from both continuing and discontinued operations; diluted loss per share is not presented due to the absence of potential dilutive shares Calculation of Basic Loss Per Share (Attributable to Owners of the Company) | Metric | H1 2025 (HK$ '000) | H1 2024 (HK$ '000, restated) | | :--- | :--- | :--- | | Loss for the purpose of calculating basic loss per share | (929) | (2,361) | | Loss for the period from discontinued operations | – | (596) | | Loss for the purpose of calculating basic loss per share from continuing operations | (929) | (1,765) | - The weighted average number of ordinary shares outstanding for the purpose of calculating basic loss per share was **721,801,778 shares** (H1 2024: 506,853,249 shares)[181](index=181&type=chunk) - Diluted loss per share is not presented as there were no potential dilutive shares outstanding for the six months ended June 30, 2025 and 2024[185](index=185&type=chunk)[186](index=186&type=chunk) [11. TRADE RECEIVABLES](index=39&type=section&id=11.%20TRADE%20RECEIVABLES) As of June 30, 2025, the Group's net trade receivables (after deducting allowance for expected credit losses) amounted to **HK$123 thousand**, a significant decrease from the end of 2024, with all receivables within 90 days Breakdown of Trade Receivables | Item | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | | :--- | :--- | :--- | | Trade receivables | 5,013 | 6,543 | | Less: Allowance for expected credit losses | (4,890) | (4,890) | | **Net amount** | **123** | **1,653** | - The Group generally grants credit periods of **0 to 90 days** to its customers[189](index=189&type=chunk) Ageing Analysis of Trade Receivables (Net) | Ageing | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | | :--- | :--- | :--- | | Within 90 days | 123 | 1,653 | | Over 90 days and within one year | – | – | [12. TRADE PAYABLES](index=40&type=section&id=12.%20TRADE%20PAYABLES) As of June 30, 2025, the Group's trade payables amounted to **HK$2,858 thousand**, with all amounts overdue by more than 365 days Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | | :--- | :--- | :--- | | Within 30 days | – | – | | 31 to 60 days | – | – | | 61 to 180 days | – | – | | 181 to 365 days | – | – | | Over 365 days | 2,858 | 2,763 | | **Total** | **2,858** | **2,763** | - Trade payables are interest-free and generally settled within **30 to 90 days** after month-end[196](index=196&type=chunk) [13. SHARE CAPITAL](index=41&type=section&id=13.%20SHARE%20CAPITAL) The company's issued share capital doubled due to a rights issue on March 27, 2025, issuing **411,219,340 new shares** and raising approximately **HK$44,903 thousand** in net proceeds Changes in Share Capital | Item | Number of Shares | Amount (HK$ '000) | | :--- | :--- | :--- | | Authorised share capital (HK$0.10 per share) | 2,000,000,000 | 200,000 | | Issued and fully paid at December 31, 2024 | 411,219,340 | 41,122 | | Net issuance of new shares after rights issue | 411,219,340 | 41,122 | | Issued and fully paid at June 30, 2025 | 822,438,680 | 82,244 | - On March 27, 2025, the company allotted and issued **411,219,340 shares** at a subscription price of **HK$0.111 per share** by way of a rights issue[199](index=199&type=chunk)[200](index=200&type=chunk) - The net proceeds from the rights issue amounted to approximately **HK$44,903 thousand**[199](index=199&type=chunk)[200](index=200&type=chunk) [14. RESERVES](index=42&type=section&id=14.%20RESERVES) This note explains the composition of the Group's reserves, including share premium, capital reserve, and exchange fluctuation reserve, and clarifies the reasons for their changes - The share premium account includes premiums on new share issues, amounts transferred from share option exercises, and is partly used for dividend payments, issue expenses, and offsetting accumulated losses[202](index=202&type=chunk)[209](index=209&type=chunk) - Capital reserve refers to the contributed capital surplus of companies comprising the Group, transferred to accumulated losses upon deconsolidation of an excluded company in 2023[203](index=203&type=chunk)[209](index=209&type=chunk) - Exchange fluctuation reserve comprises all exchange differences arising from the translation of financial statements of overseas operations[204](index=204&type=chunk)[206](index=206&type=chunk) [15. CAPITAL COMMITMENTS](index=42&type=section&id=15.%20CAPITAL%20COMMITMENTS) As of June 30, 2025, the Group's contracted but not yet incurred and provided capital commitments amounted to **HK$2,029 thousand**, primarily for property, plant, and equipment Breakdown of Capital Commitments | Item | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | | :--- | :--- | :--- | | Property, plant and equipment | 2,029 | – | [16. RELATED PARTY TRANSACTIONS](index=43&type=section&id=16.%20RELATED%20PARTY%20TRANSACTIONS) This note discloses the compensation of the Group's key management personnel, including directors' emoluments, which increased to **HK$1,271 thousand** in H1 2025 Key Management Personnel Compensation | Item | H1 2025 (HK$ '000) | H1 2024 (HK$ '000) | | :--- | :--- | :--- | | Short-term employee benefits | 1,253 | 1,080 | | Post-employment benefits | 18 | 9 | | **Total emoluments paid or payable to key management personnel** | **1,271** | **1,089** | [17. CONTINGENT LIABILITIES](index=43&type=section&id=17.%20CONTINGENT%20LIABILITIES) As of June 30, 2025, the Group had no significant contingent liabilities - The Group had no significant contingent liabilities as of June 30, 2025 (December 31, 2024: nil)[213](index=213&type=chunk)[217](index=217&type=chunk) [18. EVENTS AFTER THE REPORTING PERIOD](index=43&type=section&id=18.%20EVENTS%20AFTER%20THE%20REPORTING%20PERIOD) The Group had no other significant events after the reporting period - The Group had no other significant events after the reporting period[214](index=214&type=chunk)[218](index=218&type=chunk) [19. COMPARATIVE FIGURES](index=43&type=section&id=19.%20COMPARATIVE%20FIGURES) Comparative figures in the unaudited condensed consolidated interim financial statements have been reclassified to separately disclose discontinued operations from continuing operations - Comparative figures in the unaudited condensed consolidated interim financial statements have been reclassified to separately disclose discontinued operations from continuing operations[215](index=215&type=chunk)[219](index=219&type=chunk) [20. APPROVAL OF THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS](index=43&type=section&id=20.%20APPROVAL%20OF%20THE%20UNAUDITED%20CONDENSED%20CONSOLIDATED%20INTERIM%20FINANCIAL%20STATEMENTS) These unaudited condensed consolidated interim financial statements were approved and authorized for issue by the Board of Directors on August 29, 2025 - These unaudited condensed consolidated interim financial statements were approved and authorized for issue by the Board of Directors on **August 29, 2025**[216](index=216&type=chunk)[220](index=220&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全 部或任何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 CHINA LESSO GROUP HOLDINGS LIMITED 中 國 聯 塑 集 團 控 股 有 限 公 司 （ 於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 ） （股份代號：2128） 簡明綜合損益及其他全面收益表 截至2025年6月30日止六個月 截至2025年6月30日止六個月 中期業績公告 董事會欣然宣佈本集團截至2025年6月30日止六個月的綜合財務業績。 摘要 與截至2024年6月30日止六個月的財務業績相比： – 1 – ‧ 收入減少8.0%至人民幣124.75億元 ‧ 毛利減少5.7%至人民幣35.14億元 ‧ 期內溢利減少8.0%至人民幣9.35億元 ‧ 每股基本盈利維持在人民幣0.34元 ‧ 董事會已議決不宣派截至2025年6月30日止六個月之中期股息 | | | 截至6月30日止六個月 | | | --- | --- | --- | --- | | | | 2025 ...

Interim Results Announcement [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group turned from profit to loss, with a loss of RMB 48,583 thousand, primarily due to a significant increase in impairment losses on property, plant and equipment and right-of-use assets. Revenue decreased by 25.3% year-on-year, and gross profit decreased by 30.3% | Metric | Six Months Ended June 30, 2025 (RMB '000) | Six Months Ended June 30, 2024 (RMB '000) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 122,951 | 164,639 | -25.3 | | Cost of Sales | (95,543) | (125,337) | -23.8 | | Gross Profit | 27,408 | 39,302 | -30.3 | | Other Income | 11,338 | 8,592 | 31.9 | | Selling Expenses | (5,037) | (4,699) | 7.2 | | Impairment Loss on Property, Plant and Equipment and Right-of-Use Assets | (47,165) | (6,034) | 681.7 | | Operating (Loss)/Profit | (47,749) | 1,113 | -4390.5 | | Loss for the Period | (48,583) | (527) | -9100.0 | | (Loss)/Profit for the Period Attributable to Owners of the Company | (43,904) | 768 | -5828.9 | | Basic and Diluted (Loss)/Earnings Per Share (RMB cents) | (2.45) | 0.05 | -5000.0 | [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 total assets and net assets both decreased. Net current assets declined, but the current ratio remained healthy at 233%. Bank borrowings significantly reduced, indicating an improved debt structure | Metric | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | Change (RMB '000) | | :--- | :--- | :--- | :--- | | Non-current Assets | 217,070 | 217,548 | -478 | | Current Assets | 181,192 | 199,561 | -18,369 | | Current Liabilities | 77,750 | 48,151 | 29,599 | | Net Current Assets | 103,442 | 151,410 | -47,968 | | Total Assets Less Current Liabilities | 320,512 | 368,958 | -48,446 | | Net Assets | 312,676 | 363,690 | -51,014 | | Bank Balances and Cash | 39,607 | 63,585 | -23,978 | | Bank Borrowings | 8,000 | 18,000 | -10,000 | - The **current ratio was 233%**, and the **debt-to-equity ratio was 6.8%**[55](index=55&type=chunk) [Notes to the Interim Financial Report](index=5&type=section&id=Notes%20to%20the%20Interim%20Financial%20Report) This section details the basis of preparation, accounting policies, segment information, and specific changes and valuation methods for various assets and liabilities in the interim financial report, revealing the Group's asset impairment, revenue structure changes, and liquidity management under economic downturns [1. General Information](index=5&type=section&id=1.%20General%20Information) - The company is incorporated in the Cayman Islands, with shares listed on the Main Board of the Hong Kong Stock Exchange, primarily engaged in the design, development, production, sales, and marketing of cosplay products (costumes, wigs), lingerie, clothing/personal/home care products, and plant leasing[6](index=6&type=chunk) [2. Basis of Preparation](index=5&type=section&id=2.%20Basis%20of%20Preparation) - The condensed consolidated interim financial information is prepared in accordance with the Listing Rules of the Stock Exchange and Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants, is unaudited, and presented in RMB thousands[7](index=7&type=chunk)[8](index=8&type=chunk) [3. Adoption of Revised HKFRSs](index=5&type=section&id=3.%20Adoption%20of%20Revised%20HKFRSs) - The adoption of revised HKFRSs effective from January 1, 2025 (such as amendments to HKAS 21) had no significant impact on the results and financial position for the current and prior periods[9](index=9&type=chunk)[10](index=10&type=chunk) [4. Estimates and Judgements](index=6&type=section&id=4.%20Estimates%20and%20Judgements) - The accounting judgments, estimates, and assumptions made by management in preparing the financial information are consistent with those applied in the annual consolidated financial statements for the year ended December 31, 2024[12](index=12&type=chunk) [5. Segment Information](index=6&type=section&id=5.%20Segment%20Information) - The Group's operating segments are primarily categorized by product and service lines, including wigs, apparel and others, clothing/personal/home care products, and plant leasing[13](index=13&type=chunk) Revenue by Segment (RMB '000) | Segment | Revenue for Six Months Ended June 30, 2025 (RMB '000) | Revenue for Six Months Ended June 30, 2024 (RMB '000) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Wigs | 15,037 | 10,195 | 47.5 | | Apparel and Others | 91,708 | 137,994 | -33.5 | | Clothing, Personal, and Home Care Products | 16,206 | 16,450 | -1.5 | | Plant Leasing | – | – | Not Applicable | | **Total** | **122,951** | **164,639** | **-25.3** | Segment Results (RMB '000) | Segment | Segment Results for Six Months Ended June 30, 2025 (RMB '000) | Segment Results for Six Months Ended June 30, 2024 (RMB '000) | | :--- | :--- | :--- | | Wigs | (35,205) | (4,793) | | Apparel and Others | 15,538 | 20,315 | | Clothing, Personal, and Home Care Products | (19,993) | (5,411) | | Plant Leasing | 2,045 | (164) | | **Total** | **(37,615)** | **9,947** | [6. Revenue](index=9&type=section&id=6.%20Revenue) Revenue by Product Line (RMB '000) | Product Line | Six Months Ended June 30, 2025 (RMB '000) | Six Months Ended June 30, 2024 (RMB '000) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Wigs | 15,037 | 10,195 | 47.5 | | Apparel and Others | 91,708 | 137,994 | -33.5 | | Clothing, Personal, and Home Care Products | 16,206 | 16,450 | -1.5 | | **Total** | **122,951** | **164,639** | **-25.3** | Revenue by Business Type (RMB '000) | Business Type | Revenue for Six Months Ended June 30, 2025 (RMB '000) | Revenue for Six Months Ended June 30, 2024 (RMB '000) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Contract Manufacturing Service (CMS) Business | 74,810 | 95,011 | -21.3 | | Original Brand Manufacturing (OBM) Business | 48,141 | 69,628 | -30.9 | | **Total** | **122,951** | **164,639** | **-25.3** | [7. Other Income](index=10&type=section&id=7.%20Other%20Income) Other Income Details (RMB '000) | Item | Six Months Ended June 30, 2025 (RMB '000) | Six Months Ended June 30, 2024 (RMB '000) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Exchange Gain | 582 | 820 | -29.0 | | Bank Interest Income | 116 | 41 | 182.9 | | Government Grants | 1,383 | 670 | 106.4 | | Rental Income from Operating Leases of Investment Properties | 3,385 | 3,045 | 11.2 | | Income Related to Net Lease Investment | 112 | – | Not Applicable | | Public Business Income | 1,885 | 1,898 | -0.7 | | Subcontracting Income | 536 | 609 | -12.0 | | Gain on Disposal of Financial Assets at Fair Value Through Profit or Loss | – | 92 | -100.0 | | Others | 3,339 | 1,417 | 135.6 | | **Total** | **11,338** | **8,592** | **31.9** | [8. Profit/Loss before income tax](index=11&type=section&id=8.%20Profit%2FLoss%20before%20income%20tax) - The loss for the period was primarily affected by factors such as inventory costs, depreciation, amortization, research and development costs, and staff costs. Notably, depreciation of property, plant and equipment, investment properties, and right-of-use assets all showed significant changes[21](index=21&type=chunk) Components of Profit/Loss before Income Tax (RMB '000) | Item | Six Months Ended June 30, 2025 (RMB '000) | Six Months Ended June 30, 2024 (RMB '000) | | :--- | :--- | :--- | | Inventory Costs Recognized as Expense | 65,396 | 93,999 | | Depreciation of Property, Plant and Equipment | 4,312 | 7,844 | | Depreciation of Investment Properties | 836 | 1,758 | | Depreciation of Right-of-Use Assets | 1,829 | 97 | | Amortization of Intangible Assets | 630 | 630 | | Research and Development Costs | 15,245 | 13,611 | | Staff Costs | 34,908 | 33,544 | [9. Income Tax Expense](index=12&type=section&id=9.%20Income%20Tax%20Expense) - No provision for Hong Kong profits tax. The PRC corporate income tax rate is 25%, but some PRC subsidiaries (Party Culture Group Co., Ltd., Yiwu Party Apparel Co., Ltd., and Zhejiang Keli Technology Co., Ltd.) are certified as "High-New Technology Enterprises" and enjoy a preferential tax rate of 15% for three years[22](index=22&type=chunk)[23](index=23&type=chunk) Income Tax Expense Details (RMB '000) | Item | Six Months Ended June 30, 2025 (RMB '000) | Six Months Ended June 30, 2024 (RMB '000) | | :--- | :--- | :--- | | Current Tax - PRC Corporate Income Tax | – | (25) | | Deferred Tax | (388) | (1,433) | | **Income Tax Expense** | **(388)** | **(1,458)** | [10. Dividends](index=12&type=section&id=10.%20Dividends) - The Directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025 (2024: nil)[24](index=24&type=chunk) [11. Earnings/Loss per share](index=12&type=section&id=11.%20Earnings%2FLoss%20per%20share) Earnings/Loss per Share Details | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | (Loss)/Profit Attributable to Equity Holders of the Company (RMB '000) | (43,904) | 768 | | Weighted Average Number of Ordinary Shares in Issue ('000 shares) | 1,788,395 | 1,573,529 | | Basic and Diluted (Loss)/Earnings Per Share (RMB cents) | (2.45) | 0.05 | - Diluted loss/earnings per share is the same as basic loss/profit per share because the exercise price of share options was higher than the average market price of the shares[25](index=25&type=chunk) [12. Right-of-use assets](index=13&type=section&id=12.%20Right-of-use%20assets) Right-of-Use Assets (RMB '000) | Item | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Carrying Amount | 16,988 | 6,874 | | Beginning of Period/Year | 6,874 | 7,016 | | Additions | 19,164 | 5,272 | | Depreciation | (1,829) | (572) | | Impairment Loss | (7,221) | – | | End of Period/Year | 16,988 | 6,874 | - For the six months ended June 30, 2025, an impairment loss of **RMB 7,221 thousand** on right-of-use assets was recognized (2024: nil)[27](index=27&type=chunk) [13. Investment properties](index=13&type=section&id=13.%20Investment%20properties) Investment Properties Details | Item | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Carrying Amount | 32,892 | 33,728 | | Fair Value | 51,882 | 53,557 | | Estimated Rental Value (per sq. meter) | RMB 11.5 | RMB 12 | | Discount Rate | 6% | 6% | - The fair value of investment properties is determined using the income approach, classified as Level 3 fair value hierarchy, and valued by independent professional valuers[29](index=29&type=chunk)[30](index=30&type=chunk) [14. Property, plant and equipment](index=15&type=section&id=14.%20Property%2C%20plant%20and%20equipment) Property, Plant and Equipment Details (RMB '000) | Item | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Net Carrying Amount | 144,519 | 153,190 | | Additions | 35,585 | Not Applicable | | Impairment Loss | 39,944 | 6,034 | | Accumulated Depreciation | 130,352 | 86,096 | - For the six months ended June 30, 2025, an impairment loss of **RMB 39,944 thousand** on property, plant and equipment was recognized, a significant increase from the prior period, due to economic downturn and declining sales performance[31](index=31&type=chunk)[33](index=33&type=chunk) - The impairment loss amount is determined by the recoverable amount of the cash-generating units, using the value-in-use method, with key assumptions including sales growth rate, production line utilization rate, pre-tax discount rate (**23.0% to 23.5%**), and perpetual growth rate (**2% to 3%**)[32](index=32&type=chunk)[35](index=35&type=chunk) [15. Intangible assets](index=16&type=section&id=15.%20Intangible%20assets) Intangible Assets Details (RMB '000) | Item | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Net Carrying Amount | 2,626 | 3,256 | | Accumulated Amortization | 16,388 | 15,758 | | Amortization Expense for the Period | 630 | Not Applicable | - Intangible assets primarily include trademarks and patents, with an amortization expense of **RMB 630 thousand** for the period[34](index=34&type=chunk) [16. Inventories](index=16&type=section&id=16.%20Inventories) Inventories Details (RMB '000) | Item | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Raw Materials | 51,611 | 14,300 | | Work-in-progress | 1,015 | 2,805 | | Finished Goods | 3,303 | 5,057 | | **Total** | **55,929** | **22,162** | - Total inventories significantly increased, primarily due to a substantial rise in raw material inventories[34](index=34&type=chunk) [17. Trade and other receivables](index=17&type=section&id=17.%20Trade%20and%20other%20receivables) Trade and Other Receivables Details (RMB '000) | Item | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade Receivables (net of provision) | 52,778 | 8,218 | | Prepayments | 9,317 | 5,703 | | Other Tax Receivables | 6,856 | 2,370 | | **Total** | **77,491** | **20,401** | Aging of Trade Receivables (RMB '000) | Aging | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | 0 to 30 days | 40,048 | 4,228 | | 31 to 60 days | 12,599 | 658 | | 61 to 90 days | 11 | 1,368 | | 91 to 365 days | 88 | 1,964 | | Over 365 days | 32 | – | | **Total** | **52,778** | **8,218** | - Trade receivables significantly increased, primarily concentrated in the **0 to 30 days** aging category, with expected credit loss provisions rising from **RMB 5,996 thousand** to **RMB 6,481 thousand**[36](index=36&type=chunk)[37](index=37&type=chunk)[38](index=38&type=chunk) [18. Trade and other payables](index=18&type=section&id=18.%20Trade%20and%20other%20payables) Trade and Other Payables Details (RMB '000) | Item | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade Payables | 45,919 | 10,179 | | Accrued Salaries | 8,816 | 5,610 | | Other Tax Payables | 5,596 | 5,011 | | Other Payables | 1,786 | 2,487 | | **Total** | **62,117** | **23,287** | - Total trade and other payables significantly increased, primarily due to a substantial rise in trade payables[39](index=39&type=chunk) [Management Discussion and Analysis](index=19&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an in-depth analysis of the Group's financial performance, operating activities, future outlook, and significant events during the reporting period. The Group faced global economic challenges, leading to decreased revenue and gross profit margins, and recognized significant asset impairment losses. Concurrently, the Group actively adjusted its financial structure and sought business breakthroughs through measures such as property disposal and warrant issuance [Financial Review](index=19&type=section&id=Financial%20Review) [Revenue and Gross Profit Margin](index=19&type=section&id=Revenue%20and%20Gross%20Profit%20Margin) | Business Type | Revenue for Six Months Ended June 30, 2025 (RMB '000) | Revenue for Six Months Ended June 30, 2024 (RMB '000) | Revenue Change (%) | 2025 Gross Profit Margin (%) | 2024 Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | CMS Business | 74,810 | 95,011 | -21.3 | 22.7 | 23.8 | | OBM Business | 48,141 | 69,628 | -30.9 | 21.6 | 24.0 | | **Total** | **122,951** | **164,639** | **-25.3** | **22.3** | **23.9** | - Total revenue decreased by **25.3%**, primarily due to global economic challenges, the US Federal Reserve's slower pace of interest rate cuts, a stronger US dollar, trade conflicts, and geopolitical tensions, which adversely affected sales of cosplay costumes, wigs, and lingerie[41](index=41&type=chunk)[42](index=42&type=chunk) - Gross profit margin declined from **23.9% to 22.3%**, mainly due to reduced gross profit contribution from clothing care, cosplay costumes, and lingerie in the OBM business, reflecting intense market competition and consumer spending downgrades[43](index=43&type=chunk)[45](index=45&type=chunk) [Cost of Sales](index=20&type=section&id=Cost%20of%20Sales) - Cost of sales primarily includes raw material costs, direct labor costs, and production expenses (such as subcontracting payments, utilities, and social security for production staff)[46](index=46&type=chunk) [Other Income](index=21&type=section&id=Other%20Income_FR) - Other income increased by approximately **RMB 2.7 million** to **RMB 11.3 million**, mainly due to increased rental income from operating leases of investment properties and other rental income[47](index=47&type=chunk) [Selling Expenses](index=21&type=section&id=Selling%20Expenses) - Selling expenses as a percentage of revenue increased from **2.8% to 4.1%**, primarily due to increased advertising expenses for promoting clothing, personal, and home care product businesses[48](index=48&type=chunk) [Administrative and Other Operating Expenses](index=21&type=section&id=Administrative%20and%20Other%20Operating%20Expenses) - Administrative and other operating expenses decreased by approximately **RMB 1.2 million** to **RMB 33.8 million**, mainly due to reduced depreciation of property, plant and equipment[49](index=49&type=chunk) [Expected Credit Loss Provision for Trade Receivables](index=21&type=section&id=Expected%20Credit%20Loss%20Provision%20for%20Trade%20Receivables) - Expected credit loss provisions decreased, primarily due to a reduction in long-term overdue trade receivables[50](index=50&type=chunk) [Impairment Loss on Property, Plant and Equipment and Right-of-Use Assets](index=21&type=section&id=Impairment%20Loss%20on%20Property%2C%20Plant%20and%20Equipment%20and%20Right-of-Use%20Assets) - An impairment loss of approximately **RMB 47.2 million** on property, plant and equipment and right-of-use assets was recognized, mainly due to decreased turnover in cash-generating units such as wigs and clothing care, leading to a reduction in recoverable amounts[51](index=51&type=chunk) [Finance Costs](index=22&type=section&id=Finance%20Costs) - Finance costs increased by approximately **RMB 0.3 million** to **RMB 0.4 million**, primarily due to increased interest paid on short-term borrowings[52](index=52&type=chunk) [Income Tax](index=22&type=section&id=Income%20Tax) - Income tax expense decreased from **RMB 1.5 million** to **RMB 0.4 million**, primarily due to a reduction in operating profit[53](index=53&type=chunk) [Share of Loss of Associates](index=22&type=section&id=Share%20of%20Loss%20of%20Associates) - Share of loss of associates was **RMB 2 thousand**, related to an associate engaged in developing cultural tourism businesses[54](index=54&type=chunk) [Financial Resources and Liquidity](index=22&type=section&id=Financial%20Resources%20and%20Liquidity) - Total cash and cash equivalents decreased by approximately **RMB 24.0 million** to **RMB 39.6 million**. Total bank borrowings decreased from **RMB 18.0 million** to **RMB 8.0 million**[55](index=55&type=chunk) - The **current ratio was 233%**, and the **debt-to-equity ratio was 6.8%**[55](index=55&type=chunk) [Capital Expenditure](index=23&type=section&id=Capital%20Expenditure) - The Group invested approximately **RMB 35.6 million** in property, plant and equipment, primarily for expanding and upgrading its manufacturing and production base in Yichun City, Jiangxi Province[57](index=57&type=chunk) [Pledge of Assets](index=23&type=section&id=Pledge%20of%20Assets) - As of June 30, 2025, and December 31, 2024, the Group had no assets pledged[58](index=58&type=chunk) [Contingent Liabilities](index=23&type=section&id=Contingent%20Liabilities) - The Group had no significant contingent liabilities at the end of the reporting period[59](index=59&type=chunk) [Foreign Currency Risk](index=23&type=section&id=Foreign%20Currency%20Risk) - The Group faces currency risk from sales to overseas customers primarily denominated in USD and JPY, adopting a prudent approach and utilizing forward foreign exchange contracts to mitigate risk[60](index=60&type=chunk) [Employees and Remuneration Policy](index=23&type=section&id=Employees%20and%20Remuneration%20Policy) - As of June 30, 2025, the Group had approximately **1,175 employees**, with total staff costs of approximately **RMB 34.9 million**. The remuneration policy is regularly reviewed based on market practice, employee performance, and the Group's financial performance, with no significant changes[61](index=61&type=chunk) [Disposal of Property Holding Company and Leaseback of Property](index=24&type=section&id=Disposal%20of%20Property%20Holding%20Company%20and%20Leaseback%20of%20Property) - The company completed the disposal of a property holding company on April 30, 2025, for a consideration of **RMB 80,000,000**, constituting a very substantial disposal[62](index=62&type=chunk)[66](index=66&type=chunk) - Concurrently, the Group entered into a leaseback agreement with the buyer to lease back the property for three years with annually increasing rent, which constitutes a discloseable transaction[63](index=63&type=chunk)[64](index=64&type=chunk)[65](index=65&type=chunk) [Issue of Unlisted Warrants](index=25&type=section&id=Issue%20of%20Unlisted%20Warrants) - On March 26, 2025, the company entered into a warrant subscription agreement to issue warrants for up to **354,652,624 shares** at a subscription price of **HKD 1.00**, with an exercise period of five years[67](index=67&type=chunk) [Use of Proceeds](index=25&type=section&id=Use%20of%20Proceeds) - Net proceeds from the property disposal were approximately **RMB 79.5 million**, primarily allocated for expanding and upgrading manufacturing facilities, repaying borrowings, and general working capital[68](index=68&type=chunk)[69](index=69&type=chunk) Use of Proceeds from Property Disposal (RMB '000) | Purpose | Intended Net Amount (RMB '000) | Amount Utilized (RMB '000) | Unutilized Amount (RMB '000) | Expected Timeline | | :--- | :--- | :--- | :--- | :--- | | Expansion and Upgrade of Manufacturing and Production Facilities | 24,150 | 9,350 | 14,800 | December 2025 - June 2026 | | Repayment of Certain Group Borrowings | 18,000 | 18,000 | – | Not Applicable | | General Working Capital of the Group | 37,295 | 26,400 | 10,895 | December 2025 | | **Total** | **79,445** | **53,750** | **25,695** | | [Business Review](index=27&type=section&id=Business%20Review) - The Group's business is divided into two main categories: CMS (Contract Manufacturing Service) and OBM (Original Brand Manufacturing), with primary products including cosplay products, non-cosplay apparel (lingerie), and cleaning care products, also offering plant leasing[75](index=75&type=chunk)[76](index=76&type=chunk) Revenue by Business Category (RMB '000) | Business Category | Revenue for Six Months Ended June 30, 2025 (RMB '000) | Share of Total (%) | Revenue for Six Months Ended June 30, 2024 (RMB '000) | Share of Total (%) | Revenue Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | CMS Business | 74,810 | 60.8 | 95,011 | 57.7 | -21.3 | | OBM Business | 48,141 | 39.2 | 69,628 | 42.3 | -30.9 | | **Total** | **122,951** | **100.0** | **164,639** | **100.0** | **-25.3** | - Loss attributable to owners of the company was approximately **RMB 44.0 million**, primarily due to impairment losses recognized on property, plant and equipment and right-of-use assets during the period[78](index=78&type=chunk) [Business Outlook](index=28&type=section&id=Business%20Outlook) - Anticipated recovery in consumer spending and rising demand for affordable fashion are expected to stimulate exports, though inflation, increasing labor costs, and geopolitical tensions remain challenges. The Group will prioritize sustainable development and digital transformation, flexibly adjusting supply chain and pricing strategies to address trade policies and tariff impacts[79](index=79&type=chunk) - Following the issuance of unlisted warrants, subscribers are expected to facilitate potential business opportunities and investments of up to **USD 100 million**, significantly enhancing the company's financial position, liquidity, and long-term development capabilities[80](index=80&type=chunk) [Interim Dividend](index=29&type=section&id=Interim%20Dividend_MDA) - The Board resolved not to declare any interim dividend for the six months ended June 30, 2025 (2024: nil)[81](index=81&type=chunk) [Purchase, Redemption or Sale of the Company’s Listed Securities](index=29&type=section&id=Purchase%2C%20Redemption%20or%20Sale%20of%20the%20Company%E2%80%99s%20Listed%20Securities) - Neither the company nor its subsidiaries purchased, redeemed, or sold any of the company's listed securities for the six months ended June 30, 2025[82](index=82&type=chunk) [Other Information](index=29&type=section&id=Other%20Information) This section covers the company's compliance with corporate governance, standards for directors' securities transactions, review of interim results, and arrangements for report publication [Corporate Governance](index=29&type=section&id=Corporate%20Governance) - The company has adopted the Corporate Governance Code in Appendix C1 of the Listing Rules of the Stock Exchange and fully complied with its provisions during the reporting period[83](index=83&type=chunk) [Standard Code for Securities Transactions by Directors](index=29&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) - The company has adopted the Standard Code in Appendix C3 of the Listing Rules, and all Directors have confirmed compliance with the code during the review period[84](index=84&type=chunk) [Review of Interim Results and Interim Report](index=29&type=section&id=Review%20of%20Interim%20Results%20and%20Interim%20Report) - The company's Audit Committee, comprising three independent non-executive directors, has reviewed the Group's results and interim report for the six months ended June 30, 2025[85](index=85&type=chunk) [Publication of Interim Results and Interim Report](index=30&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report) - This announcement has been published on the websites of the Stock Exchange and the company, and the interim report will be dispatched to shareholders and published on the aforementioned websites in due course[86](index=86&type=chunk)

[Financial Highlights](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) The Group's H1 2025 revenue significantly decreased, but total comprehensive loss attributable to owners of the Company narrowed to RMB 1.8 million | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 12.9 | 157.3 | -91.8% | | Total comprehensive loss attributable to owners of the Company | 1.8 | 12.8 | -85.9% | - The Group's H1 2025 revenue significantly decreased by **91.8%** to **RMB 12.9 million**, but total comprehensive loss attributable to owners of the Company decreased by **85.9%** year-on-year to **RMB 1.8 million**[3](index=3&type=chunk) [Unaudited Interim Results Announcement](index=1&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE) This announcement presents the unaudited interim consolidated results for the six months ended June 30, 2025, reviewed by the Audit Committee - This announcement presents the unaudited interim consolidated results for the six months ended June 30, 2025, which have been reviewed by the Company's Audit Committee[4](index=4&type=chunk) [Unaudited Condensed Consolidated Statement of Comprehensive Income](index=2&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E7%B8%BD%E7%B6%9C%E5%90%88%E6%94%B6%E7%9B%8A%E8%A1%A8) Despite significantly lower revenue, the Group's H1 2025 operating performance turned profitable, substantially narrowing net loss and total comprehensive loss | Metric (RMB thousand) | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | 12,935 | 157,288 | -91.8% | | Cost of sales | (9,280) | (145,104) | -93.6% | | Gross Profit | 3,655 | 12,184 | -69.9% | | Other income | 532 | 17 | +3029.4% | | Net other gains or losses | 27,190 | 7,533 | +261.0% | | Operating profit/(loss) | 1,675 | (12,610) | Turnaround to profit | | Net loss for the period | (3,564) | (16,353) | -78.2% | | Total comprehensive loss for the period | (1,805) | (12,842) | -85.9% | - Despite a significant decrease in revenue, the Group's operating performance turned from loss to profit, and net loss for the period and total comprehensive loss for the period significantly narrowed due to a substantial increase in other gains, particularly the reversal of excess provision for accrued expenses[5](index=5&type=chunk)[7](index=7&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%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, total assets slightly increased, driven by rising non-current assets and ongoing investment in mine development | Metric (RMB thousand) | June 30, 2025 (Unaudited) | Dec 31, 2024 (Audited) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 1,034,999 | 1,015,981 | +1.9% | | Non-current Assets | 674,890 | 592,692 | +13.9% | | Current Assets | 360,109 | 423,289 | -14.9% | | Total Equity | 544,038 | 545,843 | -0.3% | | Total Liabilities | 490,961 | 470,138 | +4.4% | | Trade and Bills Receivables | 4,860 | 22,671 | -78.6% | | Prepayments and Other Receivables | 278,705 | 306,441 | -9.0% | | Cash and Cash Equivalents | 69,912 | 80,001 | -12.6% | | Amounts due to controlling shareholder and ultimate holding company | 374,303 | 267,127 | +40.1% | - The increase in non-current assets primarily reflects the Group's continuous investment in mine development, particularly in property, plant and equipment and right-of-use assets[8](index=8&type=chunk) [Notes to the Unaudited Condensed Consolidated Financial Information](index=6&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) These notes provide detailed explanations of the Group's business, accounting policies, and changes in financial metrics - The notes provide detailed explanations of the Group's business nature, accounting treatments, and the composition and reasons for changes in various financial metrics[10](index=10&type=chunk)[12](index=12&type=chunk)[13](index=13&type=chunk) [1. General Information](index=6&type=section&id=1.%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) Aide New Energy, incorporated in the Cayman Islands, primarily processes iron ore and sells minerals in China, listed on HKEX in 2012 - The Company's principal business involves iron ore processing and sales of iron concentrate and other minerals in China[10](index=10&type=chunk) - The Company's shares were listed on the Main Board of The Stock Exchange of Hong Kong on April 27, 2012[10](index=10&type=chunk) [2. Basis of Preparation](index=6&type=section&id=2.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) This interim financial information is prepared in accordance with HKAS 34 and applicable Listing Rules, and should be read in conjunction with the 2024 annual financial statements - The financial information is prepared in accordance with the Listing Rules and Hong Kong Accounting Standard 34[12](index=12&type=chunk) [3. Accounting Policies](index=6&type=section&id=3.%20%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The interim financial information is prepared on a historical cost basis, with new HKFRS amendments applied for the first time, which had no significant impact - The revised Hong Kong Financial Reporting Standard 21 "Lack of Exchangeability" was applied for the first time, but it did not have a significant financial impact[13](index=13&type=chunk) [4. Estimates](index=7&type=section&id=4.%20%E4%BC%B0%E8%A8%88) Management's judgments, estimates, and assumptions used in preparing this interim financial information are consistent with those applied in the 2024 annual consolidated financial statements - Significant judgments and estimates made by management in preparing the financial information are consistent with those of the previous year[15](index=15&type=chunk) [5. Segment Information](index=7&type=section&id=5.%20%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group operates in two segments: Mining and Ore Processing, and Mineral Products Trading, with the former contributing most of H1 2025 gross and net profit - The Group's business is divided into two major segments: "Mining and Ore Processing" and "Mineral Products Trading"[18](index=18&type=chunk) | Metric (RMB thousand) | Mining and Ore Processing (H1 2025) | Mineral Products Trading (H1 2025) | | :--- | :--- | :--- | | Revenue | 8,713 | 4,222 | | Gross Profit | 3,652 | 3 | | Net Profit/(Loss) | 2,334 | 74 | - In H1 2025, the Mining and Ore Processing segment contributed the majority of gross profit and net profit, while the Mineral Products Trading segment had extremely low gross profit[19](index=19&type=chunk) [6. Revenue](index=9&type=section&id=6.%20%E6%94%B6%E5%85%A5) H1 2025 total revenue significantly decreased by 91.8% to RMB 12.9 million, with processing service income now comprising 67.4% of total revenue | Revenue Source (RMB thousand) | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Trading - Sales of Crude Iron Powder | 3,404 | 27,327 | -87.5% | | Trading - Sales of Blended Coal | 818 | 119,125 | -99.3% | | Processing Service Income | 8,713 | 10,836 | -19.6% | | **Total Revenue** | **12,935** | **157,288** | **-91.8%** | - In H1 2025, processing service income accounted for **67.4%** of total revenue, while trading activity income decreased to **32.6%**, a stark contrast to the **93.1%** share of trading income in the prior year period[20](index=20&type=chunk) [7. Other Income](index=9&type=section&id=7.%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) Other income significantly increased to RMB 532 thousand in H1 2025, primarily due to higher government grants | Other Income Source (RMB thousand) | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Government Grants | 508 | 11 | +4518.2% | | Others | 24 | 6 | +300.0% | | **Total** | **532** | **17** | **+3029.4%** | - The increase in government grants was the primary reason for the substantial growth in other income during this period[20](index=20&type=chunk) [8. Net Other Gains or Losses](index=10&type=section&id=8.%20%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E6%88%96%E虧%E6%90%8D%E6%B7%A8%E9%A1%8D) Net other gains significantly increased to RMB 27.2 million in H1 2025, mainly from the reversal of excess provision for accrued expenses of Yangzhuang Iron Mine | Gain Source (RMB thousand) | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Reversal of excess provision for accrued expenses of Yangzhuang Iron Mine | 27,424 | – | | Gain on disposal of exploration rights | – | 7,547 | | Loss on disposal of property, plant and equipment | (234) | (14) | | **Total** | **27,190** | **7,533** | - In H1 2025, the reversal of excess provision for accrued expenses of Yangzhuang Iron Mine of **RMB 27,424 thousand** was the main driver for the significant increase in net other gains[22](index=22&type=chunk) [9. Net Finance Costs](index=11&type=section&id=9.%20%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC%E6%B7%A8%E9%A1%8D) Net finance costs decreased to RMB 1.8 million in H1 2025, primarily due to reduced interest expense on borrowings and reversal of discount on mining rights payables | Finance Cost Item (RMB thousand) | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Interest expense on borrowings | – | (701) | -100% | | Amounts payable for mining rights: reversal of discount | (2,003) | (2,750) | -27.2% | | Interest income from bank deposits | 237 | 584 | -59.5% | | **Net Finance Costs** | **(1,785)** | **(3,353)** | **-46.8%** | - Interest expense on borrowings decreased to **zero** in this period, which is a significant reason for the substantial reduction in net finance costs[23](index=23&type=chunk) [10. Income Tax Expense](index=11&type=section&id=10.%20%E6%89%80%E5%BE%97%E7%A8%85%E8%B2%BB%E7%94%A8) Income tax expense increased to RMB 3.5 million in H1 2025, mainly due to China enterprise income tax calculated at a 25% rate | Tax Type (RMB thousand) | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Current tax - Enterprise Income Tax | (3,545) | (1,751) | +102.5% | - China enterprise income tax is provided at a rate of **25%** on the assessable profits of the Group's subsidiaries in China, except for those incurring losses[24](index=24&type=chunk) [11. Loss Per Share](index=12&type=section&id=11.%20%E6%AF%8F%E8%82%A1%E虧%E6%90%8D) H1 2025 basic loss per share significantly narrowed to RMB 1.02 cents from RMB 4.68 cents, primarily due to reduced loss attributable to owners of the Company | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Loss attributable to owners of the Company (RMB thousand) | (3,564) | (16,353) | -78.2% | | Weighted average number of ordinary shares in issue | 349,785,528 | 349,785,528 | No change | | Basic loss per share (RMB cents) | (1.02) | (4.68) | -78.2% | - There were no dilutive instruments during the period, so diluted loss per share is not presented[27](index=27&type=chunk) [12. Dividends](index=12&type=section&id=12.%20%E8%82%A1%E6%81%AF) The Board resolved not to declare any interim dividend for the six months ended June 30, 2025, consistent with the prior year period - The Board resolved not to declare an interim dividend for H1 2025[28](index=28&type=chunk) [13. Trade and Bills Receivables](index=12&type=section&id=13.%20%E6%87%89%E6%94%B6%E8%B3%B4%E6%AC%BE%E5%8F%8A%E6%87%89%E6%94%B6%E7%A5%A8%E6%93%9A) As of June 30, 2025, net trade and bills receivables significantly decreased by 78.6% to RMB 4.9 million, mainly due to reduced short-term receivables | Ageing (RMB thousand) | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Within 3 months | 3,609 | 22,923 | -84.3% | | Over 1 year | 3,051 | 3,051 | No change | | **Net Trade Receivables** | **3,560** | **22,671** | **-84.3%** | | **Bills Receivables** | **1,300** | **–** | **New** | | **Total** | **4,860** | **22,671** | **-78.6%** | [14. Prepayments and Other Receivables](index=13&type=section&id=14.%20%E9%A0%90%E4%BB%98%E6%AC%BE%E9%A0%85%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) Total prepayments and other receivables decreased to RMB 278.7 million as of June 30, 2025, primarily due to reduced consideration receivable from disposal | Item (RMB thousand) | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Consideration receivable from disposal | 238,284 | 259,484 | -8.2% | | Trade deposits paid to suppliers | 3,405 | 8,496 | -59.9% | | Deductible input VAT | 19,383 | 12,622 | +53.6% | | Compensation receivable | 15,000 | 15,000 | No change | | **Total** | **278,705** | **306,441** | **-9.0%** | - Consideration receivable from disposal decreased by **RMB 20,000 thousand** and related taxes of **RMB 1,200 thousand**, which were deducted from the consideration receivable after the new mining permit was issued to the buyer[30](index=30&type=chunk) - Compensation receivable of **RMB 15,000 thousand** relates to a settlement agreement with a highway operator, with no significant risk of default[31](index=31&type=chunk) [15. Trade Payables](index=14&type=section&id=15.%20%E6%87%89%E4%BB%98%E8%B3%B4%E6%AC%BE) Total trade payables decreased by 42.2% to RMB 12.1 million as of June 30, 2025, mainly due to reductions in short-term and long-term payables | Ageing (RMB thousand) | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Within 6 months | 7,285 | 11,151 | -34.6% | | Over 1 year | 2,291 | 5,825 | -60.6% | | **Total** | **12,088** | **20,895** | **-42.2%** | [16. Capital Commitments](index=14&type=section&id=16.%20%E8%B3%87%E6%9C%AC%E6%89%BF%E8%AB%BE) As of June 30, 2025, the Group had no significant capital commitments, with the Zhuge Shangyu Titanium Iron Mine project having paid RMB 507.5 million in total costs | Item (RMB thousand) | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Capital commitments for property, plant and equipment | – | 9,400 | -100% | - The Zhuge Shangyu Titanium Iron Mine new processing and production line project has paid total costs of approximately **RMB 507,473 thousand**, with the total project cost adjusted down to **RMB 440,000 thousand**[34](index=34&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) The Group's revenue significantly decreased by 91.8%, but total comprehensive loss narrowed by 85.9% due to a reversal of accrued expenses - The Group actively responds to government calls, identifying wind, solar, and concentrated solar power as new economic growth points, and deepening the full industrial chain of titanium metal products like sponge titanium and high-purity titanium[36](index=36&type=chunk) [Business Review](index=15&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group's core business is iron and titanium iron ore in Shandong, China; H1 2025 revenue significantly decreased, but comprehensive loss narrowed - The Group's principal business involves iron ore and titanium iron ore exploration, mining, and processing, as well as mineral trading in Shandong Province, China[36](index=36&type=chunk) - Revenue significantly decreased by **91.8%** to **RMB 12.9 million**, primarily affected by mineral price fluctuations and reduced processing orders[36](index=36&type=chunk) - Total comprehensive loss decreased by **85.9%** to **RMB 1.8 million**, mainly benefiting from the reversal of excess provision for accrued expenses of Yangzhuang Iron Mine of **RMB 27.4 million**[37](index=37&type=chunk) [Summary of Work in the First Half of 2025](index=16&type=section&id=2025%E5%B9%B4%E4%B8%8A%E5%8D%8A%E5%B9%B4%E5%B7%A5%E4%BD%9C%E7%B8%BD%E7%B5%90) The Group advanced Brazilian crude powder processing, achieved RMB 6.171 million in coal trade revenue, and progressed Zhuge Shangyu mine construction and environmental initiatives - In H1, Brazilian crude powder toll processing volume reached **103 thousand tonnes**[38](index=38&type=chunk) - Coal and coal product trading achieved sales revenue of **RMB 6.171 million**[38](index=38&type=chunk) - The Zhuge Shangyu mine and beneficiation plant new project, with an investment of approximately **RMB 1.5 billion**, has largely completed civil works and steel structure installation, with future development towards unmanned and intelligent operations[38](index=38&type=chunk) - The Zhuge Shangyu 800,000 tonnes/year mining right has been processed, meeting legal conditions for the infrastructure construction period; the 10 million tonnes/year iron-titanium ore expansion project obtained an exploration permit[39](index=39&type=chunk) - Shandong Shengtai Mining Technology Co., Ltd. was recognized as a provincial "Innovative Small and Medium-sized Enterprise" and "Technological Innovation Enterprise," and the Zhuge Shangyu 10 million tonnes/year beneficiation project was designated a "Shandong Province Green Low-Carbon High-Quality Development Key Project"[39](index=39&type=chunk) [Shareholder Loans](index=18&type=section&id=%E8%82%A1%E6%9D%B1%E8%B2%B8%E6%AC%BE) Controlling shareholder and ultimate holding company advanced approximately RMB 107.2 million to the Group as interest-free, unsecured, non-fixed repayment term loans - Controlling shareholder Mr. Li Yunde and ultimate holding company Hongfa further advanced a total of approximately **RMB 107.176 million** to the Group[40](index=40&type=chunk) - These advances are interest-free, unsecured, and have no fixed repayment terms[40](index=40&type=chunk) [Financial Review](index=18&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) This section reviews the Group's H1 2025 financial performance, including product prices, revenue, costs, and explains the significant narrowing of total comprehensive loss - The Group's revenue significantly decreased by **91.8%**, primarily due to slower trading activities and reduced processing orders[41](index=41&type=chunk) - Total comprehensive loss decreased by **85.9%**, mainly benefiting from the reversal of excess provision for accrued expenses of Yangzhuang Iron Mine[51](index=51&type=chunk) [Prices of the Group's Products](index=18&type=section&id=%E6%9C%AC%E9%9B%86%E5%9C%98%E7%94%A2%E5%93%81%E7%9A%84%E5%83%B9%E6%A0%BC) In H1 2025, the Group did not produce iron concentrate, while average selling prices for crude iron powder and blended coal increased by 12.9% and 8.7% - No iron concentrate was produced or sold in H1 2025[42](index=42&type=chunk) | Traded Goods | H1 2025 Average Selling Price (RMB/tonne) | H1 2024 Average Selling Price (RMB/tonne) | Change (%) | | :--- | :--- | :--- | :--- | | Crude Iron Powder | 858.5 | 760.2 | +12.9% | | Blended Coal | 312.2 | 287.2 | +8.7% | [Revenue](index=19&type=section&id=%E6%94%B6%E5%85%A5) Total revenue for H1 2025 was RMB 12,935 thousand, a 91.8% year-on-year decrease, with processing service income significantly increasing its share to 67.4% | Revenue Source | H1 2025 (RMB thousand) | Share (%) | H1 2024 (RMB thousand) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Trading Activities Sales - Crude Iron Powder | 3,404 | 26.3% | 27,327 | 17.4% | | Trading Activities Sales - Blended Coal | 818 | 6.3% | 119,125 | 75.7% | | Processing Services | 8,713 | 67.4% | 10,836 | 6.9% | | **Total Revenue** | **12,935** | **100.0%** | **157,288** | **100.0%** | | Trading Volume (thousand tonnes) | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Crude Iron Powder | 4.0 | 35.9 | -88.9% | | Blended Coal | 2.6 | 414.8 | -99.4% | | **Total Volume** | **6.6** | **450.7** | **-98.5%** | [Cost of Sales](index=20&type=section&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC) H1 2025 total cost of sales significantly decreased by 93.6% to RMB 9.3 million, consistent with revenue decline, due to reduced trading volume and processing services | Cost of Sales Source | H1 2025 (RMB thousand) | Share (%) | H1 2024 (RMB thousand) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Cost of sales for trading activities | 4,219 | 45.5% | 136,852 | 94.3% | | Cost of sales for processing services | 5,061 | 54.5% | 8,252 | 5.7% | | **Total Cost of Sales** | **9,280** | **100.0%** | **145,104** | **100.0%** | - Total cost of sales decreased by **93.6%** to **RMB 9.3 million**, primarily due to a reduction in mineral trading volume of approximately **444.1 thousand tonnes** and decreased processing services[46](index=46&type=chunk) [Gross Profit and Gross Profit Margin](index=21&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) H1 2025 gross profit decreased by 69.9% to RMB 3.7 million, but overall gross profit margin increased to 28.3% due to higher-margin processing service income | Gross Profit Source | H1 2025 (RMB thousand) | Share (%) | H1 2024 (RMB thousand) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Gross profit from trading activities | 3 | 0.1% | 9,600 | 78.8% | | Gross profit from processing services | 3,652 | 99.9% | 2,584 | 21.2% | | **Total Gross Profit** | **3,655** | **100.0%** | **12,184** | **100.0%** | | Gross Profit Margin | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Gross profit margin from trading activities - Crude Iron Powder | 0.0% | 0.2% | | Gross profit margin from trading activities - Blended Coal | 0.2% | 8.0% | | Gross profit margin from processing services | 41.9% | 23.8% | | **Overall Gross Profit Margin** | **28.3%** | **7.7%** | - The improvement in overall gross profit margin is primarily attributable to the increased proportion of processing service income, which has a higher profit margin than trading activities[48](index=48&type=chunk) [Distribution Costs and Administrative Expenses](index=22&type=section&id=%E5%88%86%E9%8A%B7%E6%88%90%E6%9C%AC%E5%8F%8A%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) Distribution and administrative expenses decreased by 5.7% to RMB 29.8 million, mainly due to reduced distribution costs from the sharp decline in trading activities - Total distribution costs and administrative expenses decreased by **5.7%** to **RMB 29.8 million**[49](index=49&type=chunk) - Distribution costs decreased by **RMB 3.1 million**, primarily due to a sharp reduction in trading activities[49](index=49&type=chunk) [Net Finance Costs](index=22&type=section&id=%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC%E6%B7%A8%E9%A1%8D) Net finance costs decreased, primarily due to the absence of interest expense on borrowings in the current period, as all borrowings were fully repaid in 2024 - Net finance costs decreased, mainly because there were **no interest expenses on borrowings** in the current period, as all borrowings were fully repaid in 2024[50](index=50&type=chunk) [Total Comprehensive Income](index=22&type=section&id=%E7%B6%9C%E5%90%88%E6%94%B6%E7%9B%8A%E7%B8%BD%E9%A1%8D) H1 2025 total comprehensive loss attributable to owners of the Company significantly decreased by 85.9% to RMB 1.8 million, primarily due to a RMB 27.4 million reversal of accrued expenses - Total comprehensive loss attributable to owners of the Company decreased by **85.9%** to **RMB 1.8 million**[51](index=51&type=chunk) - The reduction in loss was mainly attributable to the **RMB 27.4 million** reversal of excess provision for accrued expenses of Yangzhuang Iron Mine[51](index=51&type=chunk) [Work Plan for the Second Half of 2025](index=23&type=section&id=2025%E5%B9%B4%E4%B8%8B%E5%8D%8A%E5%B9%B4%E5%B7%A5%E4%BD%9C%E8%A8%88%E5%8A%83) The Group plans to enhance mining, expand the titanium industry chain, advance Zhuge Shangyu low-carbon project, increase coal trade, and promote the 10 million tonnes/year iron-titanium ore expansion - The plan for H2 includes increasing coal and coal product trading volume to boost sales and profitability[52](index=52&type=chunk) - The Zhuge Shangyu mine is preparing to enter the infrastructure construction and mining phase, with plans to complete equipment installation and joint commissioning, and promote integrated industry-university-research development[52](index=52&type=chunk) - Focus will be placed on low-carbon, environmentally friendly, and sustainable new energy projects, with plans to adjust the industrial structure[52](index=52&type=chunk) - The Zhuge Shangyu 10 million tonnes/year iron-titanium ore expansion project will advance work such as defining the mining area boundaries and reviewing the development and utilization plan[52](index=52&type=chunk) [Other Information](index=24&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) Ongoing capital expenditures for Zhuge Shangyu Titanium Iron Mine development impacted liquidity, increasing the gearing ratio and decreasing the current ratio - The Group's ongoing capital expenditures for the Zhuge Shangyu Titanium Iron Mine development have led to a decrease in the current ratio[54](index=54&type=chunk) - The Group has **126 employees** and implements a share award scheme to recognize and incentivize talent[57](index=57&type=chunk)[61](index=61&type=chunk) [Liquidity and Financial Resources](index=24&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) As of June 30, 2025, total borrowings increased to RMB 374.3 million, cash was RMB 72.4 million, gearing ratio rose to 40.8%, and current ratio decreased to 0.87 times | Metric (RMB million) | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total Borrowings | 374.3 | 267.1 | +40.1% | | Cash and Bank Balances | 72.4 | 80.0 | -9.5% | | Financial Ratios | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Gearing Ratio | 40.8% | 32.9% | +7.9% | | Current Ratio | 0.87 times | 1.07 times | -0.20 times | - The decrease in the current ratio is primarily attributable to continuous capital expenditures for the development of the Zhuge Shangyu Titanium Iron Mine, funded by advances from the controlling shareholder[54](index=54&type=chunk) [Material Investments](index=24&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) As of June 30, 2025, the Group held no material investments - The Group held no material investments at the end of the reporting period[55](index=55&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=24&type=section&id=%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E3%80%81%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%90%88%E7%87%9F%E4%BC%81%E6%A5%AD%E7%9A%84%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE) For the six months ended June 30, 2025, the Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures - No material acquisition or disposal activities occurred during the reporting period[56](index=56&type=chunk) [Employees and Remuneration Policies](index=24&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group had 126 employees, with RMB 7.4 million in benefit expenses, offering pension plans, MPF, and a restricted share award scheme | Metric | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Number of Employees | 126 | 119 | +7 | | Employee Benefit Expenses (RMB million) | 7.4 | 6.8 (H1 2024) | +8.8% | - The Group provides retirement benefits for employees and has adopted a restricted share award scheme[57](index=57&type=chunk) [Pledged Assets](index=25&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group pledged RMB 2,500 thousand in time deposits as security for contractors - The Group has pledged **RMB 2,500 thousand** in time deposits to provide guarantees to contractors[58](index=58&type=chunk) [Foreign Exchange Risk](index=25&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) The Group's revenues, expenses, and monetary assets/liabilities are primarily denominated in RMB and HKD, with no current foreign exchange hedging policy - The Group primarily conducts transactions in RMB and HKD and currently has no foreign exchange hedging policy[59](index=59&type=chunk) [Contingent Liabilities](index=25&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had no material contingent liabilities - The Group had no material contingent liabilities at the end of the reporting period[60](index=60&type=chunk) [Share Award Scheme](index=25&type=section&id=%E8%82%A1%E4%BB%BD%E7%8D%8E%E5%8B%B5%E8%A8%88%E5%8A%83) The Group's 2020 restricted share award scheme incentivizes employees; as of June 30, 2025, the trustee held 501,000 restricted shares, with no new grants this period - The Group has a share award scheme aimed at recognizing and incentivizing employees[61](index=61&type=chunk) - As of June 30, 2025, the trustee held **501,000 restricted shares**, but no restricted shares were granted to employees during the period[61](index=61&type=chunk) - The maximum number of restricted shares available for grant under the scheme is **35,028,652 shares**[61](index=61&type=chunk) [Events After the Reporting Period](index=25&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 up to the date of this announcement - No material events occurred after the end of the reporting period up to the date of this announcement[62](index=62&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=26&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%9A%84%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) For the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities - The Company did not purchase, sell, or redeem any listed securities during the reporting period[63](index=63&type=chunk) [Standard Code for Securities Transactions by Directors](index=26&type=section&id=%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The Company has adopted and confirmed compliance with the Standard Code for Securities Transactions by Directors as set out in Appendix C3 of the Listing Rules - The Company's directors have complied with the Standard Code for Securities Transactions as set out in Appendix C3 of the Listing Rules[64](index=64&type=chunk) [Corporate Governance Practices](index=26&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A6%8F) The Company has adopted and believes it has complied with all relevant code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules - The Company has complied with the Corporate Governance Code as set out in Appendix C1 of the Listing Rules[65](index=65&type=chunk) [Audit Committee](index=26&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee, comprising four independent non-executive directors, has reviewed and approved this interim consolidated results, confirming its compliance with applicable standards and regulations - The Audit Committee, composed of four independent non-executive directors, has reviewed and approved these interim results[66](index=66&type=chunk) [Board of Directors](index=26&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83) The Board of Directors consists of Mr. Li Yunde as Chairman, Mr. Geng Guohua as CEO, Mr. Lang Weiguo as Executive Director, and four independent non-executive directors - The Board of Directors includes three executive directors and four independent non-executive directors[66](index=66&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 告 全部或任何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責 任。 Guan Chao Holdings Limited 冠轈控股有限公司 （於開曼群島註冊成立之有限公司） （股份代號：1872） 截 至2025年6月30日止六個月 中期業績公告 冠 轈 控 股 有 限 公 司（「本公司」）董 事（「董 事」）會（「董事會」）欣 然 公 佈 本 公 司 及 其 附 屬 公 司（統 稱「本集團」）截 至2025年6月30日止六個月之未經審計簡明綜合財 務 報 表，連 同2024年 之 相 應 期 間 比 較 數 字。 – 1 – 簡明綜合全面收益表 截 至2025年6月30日止六個月 | | | | | | | | | | | | | | | | | 截 | | 至6月30日止六個月 | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- ...

[Interim Results Announcement](index=1&type=section&id=%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%91%8A) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) The Group achieved a profit of HK$6,229 thousand from continuing operations, a significant improvement from a loss of HK$250,400 thousand in the prior period, despite a revenue decrease due to reduced big data services activity Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Continuing Operations) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 20,258 | 89,721 | | Gross Profit | 10,052 | 57,567 | | Profit/(Loss) Before Tax | 6,207 | (256,708) | | Profit/(Loss) for the Period from Continuing Operations | 6,229 | (250,400) | | Profit/(Loss) for the Period from Discontinued Operations | 4,897 | (109,570) | | Profit/(Loss) for the Period | 11,126 | (359,970) | | Profit/(Loss) for the Period Attributable to Owners of the Company | 27,362 | (226,005) | | Basic and Diluted Earnings/(Loss) Per Share (HK cents) | 2.57 | (21.21) | - Continuing operations turned from a loss of **HK$250,400 thousand** in the prior period to a profit of **HK$6,229 thousand**, indicating a significant improvement in operating performance[4](index=4&type=chunk) [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, total non-current assets significantly decreased to HK$23,989 thousand, while net current liabilities improved to HK$35,926 thousand, and the deficiency attributable to owners of the company narrowed to HK$45,273 thousand Condensed Consolidated Statement of Financial Position (Period End) | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Non-current Assets | 23,989 | 112,827 | | Current Assets | 188,363 | 436,383 | | Current Liabilities | 224,289 | 578,320 | | Net Current Liabilities | (35,926) | (141,937) | | Net Liabilities | (15,345) | (36,229) | | Deficiency Attributable to Owners of the Company | (45,273) | (54,339) | | Total Deficiency | (15,345) | (36,229) | - Net current liabilities significantly improved from **HK$141,937 thousand** as of December 31, 2024, to **HK$35,926 thousand** as of June 30, 2025[6](index=6&type=chunk) - Non-current assets significantly decreased, primarily due to financial assets at fair value through profit or loss reducing from **HK$86,836 thousand** to zero[6](index=6&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=6&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) [1 General Information and Basis of Preparation](index=6&type=section&id=1%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99%E5%8F%8A%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The Group, an investment holding company primarily engaged in big data services, completed the disposal of its discontinued third-party payment business and faces significant going concern uncertainties due to net current liabilities, net deficiency, and a substantial decline in continuing operations revenue, with directors implementing measures to ensure sustainability - The Company primarily engages in big data services and has disposed of its third-party payment services business, which is classified as a discontinued operation[9](index=9&type=chunk)[10](index=10&type=chunk) - As of June 30, 2025, the Group faces **net current liabilities of HK$35,926 thousand** and a **net deficiency of HK$15,345 thousand**, with a significant decline in revenue from continuing operations, indicating material uncertainty about its ability to continue as a going concern[10](index=10&type=chunk) - The Board has prepared cash flow forecasts and plans to implement measures such as equity financing, disposal of unlisted equity investments, negotiation of convertible bond settlements, and renewal of big data service license agreements to ensure the Group can operate on a going concern basis[12](index=12&type=chunk)[13](index=13&type=chunk) [2 Significant Accounting Policies](index=7&type=section&id=2%20%E4%B8%BB%E8%A6%81%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The condensed consolidated financial statements are prepared on a historical cost basis, with the first-time application of HKFRS accounting standards (amendments) having no material impact on financial position or performance - The financial statements are primarily prepared on a historical cost basis, with the first-time application of HKFRS accounting standards (amendments) having no material impact[14](index=14&type=chunk)[15](index=15&type=chunk) [3 Revenue](index=7&type=section&id=3%20%E6%94%B6%E7%9B%8A) Revenue from continuing operations (big data services) significantly decreased by approximately **77.4%** to **HK$20,258 thousand** in the first half of 2025 compared to **HK$89,721 thousand** in the same period of 2024 Revenue from Continuing Operations | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Data Analysis Services Revenue | 20,258 | 89,721 | - Revenue from continuing operations decreased significantly by **77.4%** year-on-year, primarily due to reduced big data services business activities[16](index=16&type=chunk) [4 Segment Information](index=8&type=section&id=4%20%E5%88%86%E9%A1%9E%E8%B3%87%E6%96%99) The Group's continuing operations are attributed to a single operating segment, big data services, following the termination of its third-party payment business, with no separate geographical segment analysis presented as revenue and non-current assets are primarily from China - The Group's continuing operations comprise a single operating segment, big data services, as the third-party payment services business has been terminated[17](index=17&type=chunk) - All revenue and non-current assets from continuing operations are primarily derived from China, hence no geographical segment information is provided[18](index=18&type=chunk) [5 Other Income and Net Gains or Losses](index=8&type=section&id=5%20%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E5%8F%8A%E虧%E6%90%8D%E6%B7%A8%E9%A1%8D) Net other income from continuing operations significantly improved to **HK$10,994 thousand** for the six months ended June 30, 2025, from a loss of **HK$45 thousand** in the prior period, primarily due to gains from derecognition of a subsidiary and net gains on lease termination Other Income and Net Gains or Losses | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Fair value change in financial assets at FVTPL – gains/(losses) | 961 | (87) | | Gain on derecognition of a subsidiary | 5,008 | – | | Net gain on lease termination | 5,163 | 46 | | Net exchange losses | (4) | (1) | | Others | (134) | (3) | | **Total** | **10,994** | **(45)** | - Other income and net gains or losses turned from a loss to a gain, primarily due to gains from derecognition of a subsidiary and net gains on lease termination[19](index=19&type=chunk) [6 Finance Costs](index=8&type=section&id=6%20%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) Finance costs for continuing operations slightly increased to **HK$3,097 thousand** for the six months ended June 30, 2025, primarily driven by effective interest expense on convertible bonds Finance Costs | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Interest on bank and other borrowings | 480 | 516 | | Interest on lease liabilities | 166 | 80 | | Effective interest expense on convertible bonds | 2,451 | 2,465 | | **Total** | **3,097** | **3,061** | [7 Profit/(Loss) Before Tax](index=9&type=section&id=7%20%E9%99%A4%E7%A8%85%E5%89%8D%E6%BA%A2%E5%88%A9%E2%88%95%EF%BC%88%E虧%E6%90%8D%EF%BC%89) Profit/(loss) before tax from continuing operations is stated after deducting/(crediting) items such as amortization of intangible assets, depreciation of property, plant and equipment, depreciation of right-of-use assets, and interest income Adjustments to Profit/(Loss) Before Tax | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Amortisation of intangible assets | 89 | 979 | | Depreciation of property, plant and equipment | 16 | 7,961 | | Depreciation of right-of-use assets | 609 | 2,323 | | Interest income | (121) | (222) | [8 Income Tax Credit](index=9&type=section&id=8%20%E6%89%80%E5%BE%97%E7%A8%85%E6%8A%B5%E5%85%8D) Income tax credit from continuing operations significantly decreased to **HK$22 thousand** for the six months ended June 30, 2025, from **HK$6,308 thousand** in the prior period, primarily due to a reduction in the reversal of deferred tax liabilities related to fair value adjustments of intangible assets Income Tax Credit | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Deferred tax credit | (22) | (6,308) | - Income tax credit significantly decreased, primarily due to a reduction in the reversal of deferred tax liabilities[21](index=21&type=chunk)[44](index=44&type=chunk) [9 Discontinued Operations](index=9&type=section&id=9%20%E5%B7%B2%E7%B5%82%E6%AD%A2%E6%A5%AD%E5%8B%99) The Group completed the disposal of its third-party payment services business (PAD (BVI)) on June 16, 2025, which is classified as a discontinued operation, achieving a profit of **HK$4,897 thousand** in the first half of 2025, primarily due to a **HK$33,867 thousand** gain on disposal, reversing a **HK$109,570 thousand** loss in the prior period - The Group completed the disposal of its third-party payment services business, PAD (BVI), on **June 16, 2025**, which is classified as a discontinued operation[22](index=22&type=chunk)[34](index=34&type=chunk) Profit/(Loss) for the Period from Discontinued Operations | Item | January 1, 2025 to June 16, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Loss from discontinued operations for the period | (28,970) | (109,570) | | Gain on disposal of discontinued operations | 33,867 | – | | **Total** | **4,897** | **(109,570)** | - Net cash flow from discontinued operations turned from an outflow of **HK$86,266 thousand** in the prior period of 2024 to an inflow of **HK$7,612 thousand** in the first half of 2025[25](index=25&type=chunk) [10 Earnings/(Loss) Per Share](index=11&type=section&id=10%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9%E2%88%95%EF%BC%88%E虧%E6%90%8D%EF%BC%89) Basic and diluted earnings per share from continuing operations significantly improved to **0.89 HK cents** for the six months ended June 30, 2025, from a loss of **18.21 HK cents** in the prior period, with discontinued operations also turning profitable at **1.7 HK cents** Earnings/(Loss) Per Share | Item | 2025 (HK cents) | 2024 (HK cents) | | :--- | :--- | :--- | | Basic and diluted from continuing operations | 0.89 | (18.21) | | Basic and diluted from discontinued operations | 1.7 | (3.0) | - The calculation of diluted earnings per share does not assume the exercise of convertible bonds and share options, as their exercise prices are higher than the average market price of shares or would result in a reduction in loss per share[26](index=26&type=chunk)[27](index=27&type=chunk) [11 Dividends](index=12&type=section&id=11%20%E8%82%A1%E6%81%AF) For the six months ended June 30, 2025, the Board did not pay, declare, or propose any interim dividends - No dividends were paid, declared, or proposed for the current period or the prior period[29](index=29&type=chunk)[39](index=39&type=chunk) [12 Trade and Other Receivables](index=12&type=section&id=12%20%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) Total trade and other receivables significantly decreased to **HK$49,350 thousand** as of June 30, 2025, from **HK$307,791 thousand** as of December 31, 2024, with trade receivables net of credit loss allowance at **HK$9,560 thousand** and no overdue balances at the reporting date Trade and Other Receivables | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade receivables (net) | 9,560 | 48,645 | | Other receivables, deposits and prepayments | 39,790 | 259,146 | | **Total** | **49,350** | **307,791** | - As of June 30, 2025, the Group had no overdue trade receivables balances[31](index=31&type=chunk) [13 Trade and Other Payables](index=13&type=section&id=13%20%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) Total trade and other payables significantly decreased to **HK$148,079 thousand** as of June 30, 2025, from **HK$336,983 thousand** as of December 31, 2024, with trade payables over 90 days forming the largest proportion Trade and Other Payables | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade payables | 108,244 | 133,250 | | Accrued staff costs | 7,738 | 23,370 | | Amounts due to merchants | – | 44,709 | | Unutilised float | – | 39,089 | | Other payables and accrued expenses | 32,097 | 96,565 | | **Total** | **148,079** | **336,983** | - Among trade payables, amounts overdue for **over 90 days** accounted for **HK$107,080 thousand**, representing a major component[33](index=33&type=chunk) [14 Disposal of a Subsidiary](index=14&type=section&id=14%20%E5%87%BA%E5%94%AE%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8) The Group disposed of its entire equity interest in PAD (BVI), a third-party payment services subsidiary, for a cash consideration of **HK$1** on June 16, 2025, resulting in a gain on disposal of **HK$33,867 thousand** - The Group disposed of its entire equity interest in PAD (BVI), which engages in third-party payment services, for a cash consideration of **HK$1**, completed on **June 16, 2025**[34](index=34&type=chunk) Net Liabilities and Gain on Disposal of PAD (BVI) | Item | Amount (HK$ thousand) | | :--- | :--- | | Net liabilities disposed of | (45,763) | | Gain on disposal | 33,867 | | Non-controlling interests | 31,273 | | Reserves released on disposal | (19,377) | | **Total consideration settled by cash** | **–*** | | Net cash outflow arising from disposal | (727) | [Management Discussion and Analysis](index=15&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) [Results and Financial Overview](index=15&type=section&id=%E6%A5%AD%E7%B8%BE%E5%8F%8A%E8%B2%A1%E5%8B%99%E6%A6%82%E8%A6%BD) For the six months ended June 30, 2025, revenue from continuing operations significantly decreased by **77.4%** to **HK$20,258 thousand** due to reduced big data services activity, yet continuing operations achieved a profit of **HK$6,229 thousand**, reversing a prior-period loss, primarily due to substantial reductions in impairment losses on intangible assets, distribution and selling expenses, administrative expenses, and research and development expenses, leading to a turnaround in earnings per share - Revenue from continuing operations decreased by **77.4%** year-on-year to **HK$20,258 thousand**, primarily due to a significant reduction in big data services business activities[38](index=38&type=chunk) - Continuing operations turned from a loss of **HK$250,400 thousand** in the prior period to a profit of **HK$6,229 thousand**, mainly due to significant reductions in impairment losses on intangible assets, distribution and selling expenses, administrative expenses, and research and development expenses[38](index=38&type=chunk) - Earnings per share from continuing operations turned from a loss of **18.21 HK cents** in the prior period to a profit of **0.89 HK cents**[38](index=38&type=chunk) [Interim Dividends](index=15&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board has resolved not to pay and not to recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board decided not to pay an interim dividend[39](index=39&type=chunk) [Business Review](index=15&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) [Big Data Services Business](index=15&type=section&id=%E5%A4%A7%E6%95%B8%E6%93%9A%E6%9C%8D%E5%8B%99%E6%A5%AD%E5%8B%99) LYGR Group, a subsidiary, provides AI-powered big data analytics and digital risk management solutions for retail financial services, but faced significant business contraction in H1 2025 due to economic headwinds, prompting cost-efficiency measures and expansion of its SaaS/PaaS cloud platform and AI large model capabilities into new sectors like education, culture, and telecom operators - LYGR Group provides digital risk management and other digital services for retail financial services, building SaaS/PaaS cloud platforms to offer AI-powered algorithmic solutions to key clients, including leading Chinese banks[40](index=40&type=chunk) - In the first half of 2025, the big data risk control business significantly contracted due to macroeconomic and regulatory impacts, with the industry entering a new normal of **"low gross profit, high compliance"**[41](index=41&type=chunk)[53](index=53&type=chunk) - The Group implemented cost reduction and efficiency improvement measures, and expanded its big data analysis services to multiple industries, including education, culture, and telecom operators[41](index=41&type=chunk)[54](index=54&type=chunk) [Overall Performance](index=16&type=section&id=%E6%95%B4%E9%AB%94%E8%A1%A8%E7%8F%BE) For the six months ended June 30, 2025, continuing operations saw significant declines in gross profit and gross margin, but a substantial increase in net other income, alongside significant reductions in impairment losses on intangible assets, distribution and selling expenses, administrative expenses, and R&D expenses, while finance costs slightly increased and income tax credit decreased Key Financial Performance Changes for Continuing Operations | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Gross Profit | 10,052 | 57,567 | Decreased by 82.5% | | Gross Margin | 49.6% | 64.2% | Decreased by 14.6 percentage points | | Other Income | 842 | 1,159 | Decreased by 27.4% | | Other Income and Net Gains or Losses | 10,994 | (45) | Turned from loss to gain | | Impairment Loss on Intangible Assets | 0 | 238,301 | Decreased by 100% | | Distribution and Selling Expenses | 1,844 | 25,469 | Decreased by 92.8% | | Administrative Expenses | 8,527 | 30,103 | Decreased by 71.7% | | Research and Development Expenses | 2,213 | 18,455 | Decreased by 88% | | Finance Costs | 3,097 | 3,061 | Increased by 1.2% | | Income Tax Credit | 22 | 6,308 | Decreased by 99.6% | - The decrease in gross profit and gross margin was primarily due to a significant reduction in big data services business activities[42](index=42&type=chunk) - The significant increase in other income was primarily due to gains from derecognition of a subsidiary and net gains on lease termination[42](index=42&type=chunk) [Liquidity, Financial Resources, Borrowings, Share Capital Structure, Charges on Assets and Foreign Exchange Fluctuation Risks](index=17&type=section&id=%E8%B3%87%E9%87%91%E6%B5%81%E5%8B%95%E6%80%A7%E3%80%81%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90%E3%80%81%E5%80%9F%E6%AC%BE%E3%80%81%E8%82%A1%E6%9C%AC%E7%B5%90%E6%A7%8B%E3%80%81%E8%B3%87%E7%94%A2%E6%8A%BC%E8%A8%98%E5%8F%8A%E5%8C%AF%E7%8E%87%E6%B3%A2%E5%8B%95%E7%9A%84%E9%A2%A8%E9%9A%AA) As of June 30, 2025, the Group experienced a significant reduction in non-current assets and an improvement in net current liabilities, with total debt substantially decreasing due to reduced borrowings, while maintaining stable gearing and current ratios, no asset pledges, and close monitoring of foreign exchange risks Liquidity and Debt Indicators | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Non-current Assets | 23,989 | 112,827 | | Net Current Liabilities | (35,926) | (141,937) | | Total Debt | 76,210 | 149,202 | | Borrowings | 12,617 | 80,683 | | Convertible Bonds | 62,909 | 60,458 | | Lease Liabilities | 684 | 8,061 | | Gearing Ratio | 1.1 times | 1.1 times | | Current Ratio | 0.8 times | 0.8 times | - All borrowings of approximately **HK$12,617 thousand** are repayable after one year[47](index=47&type=chunk) - Convertible bonds bear interest at **6% per annum**, with an additional **10% per annum** interest accruing upon default[46](index=46&type=chunk) - The Group has no assets pledged/charged and closely monitors foreign exchange risks[48](index=48&type=chunk) [Treasury Policy](index=18&type=section&id=%E5%BA%AB%E5%8B%99%E6%94%BF%E7%AD%96) The Group adopts a prudent financial management approach, committed to maintaining a sound liquidity position, mitigating credit risk through continuous credit assessments, and closely monitoring liquidity to meet funding requirements - The Group adopts a prudent treasury policy, maintaining sound liquidity, mitigating risks through credit assessments, and monitoring its liquidity position[50](index=50&type=chunk) [Employees](index=18&type=section&id=%E5%83%B1%E5%93%A1) As of June 30, 2025, the Group's employee count significantly decreased to **24** (December 31, 2024: **172**), with remuneration policies regularly reviewed to align with market conditions and individual performance - The number of employees significantly decreased from **172** to **24**[51](index=51&type=chunk) - The Group regularly reviews its remuneration policy to ensure alignment with market conditions and individual performance[51](index=51&type=chunk) [Material Investments, Acquisitions and Disposals](index=18&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E3%80%81%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E4%BA%8B%E9%A0%85) Apart from the disclosed disposal of a subsidiary, the Group had no other material investments, acquisitions, or disposals during the interim period - Apart from the disclosed disposal of a subsidiary, there were no other material investments, acquisitions, or disposals during the current period[52](index=52&type=chunk) [Prospects and Strategies](index=18&type=section&id=%E5%89%8D%E6%99%AF%E5%8F%8A%E7%AD%96%E7%95%A5) Facing macroeconomic challenges and a "low gross profit, high compliance" industry new normal, the Group achieved revenue in H1 2025 under business pressure and will continue cost reduction and efficiency improvement, leveraging its SaaS/PaaS cloud platform and AI large model capabilities to expand into education, culture, and telecom sectors, while focusing on "stabilizing finance," "diversifying," and "pioneering innovation" in H2 to develop new growth drivers - The Group will continue to implement cost reduction and efficiency improvement measures, leveraging its SaaS/PaaS cloud platform and AI large model capabilities to expand big data analysis services into multiple industries, including education, culture, and telecom operators[41](index=41&type=chunk)[54](index=54&type=chunk) - The Group will actively participate in the integrated development of public and social data, striving to gain a first-mover advantage in the new round of market access[54](index=54&type=chunk) - Looking ahead to the second half of the year, the Group's strategy focuses on **"stabilizing finance"** (lightweight transformation of credit risk control products), **"diversifying"** (deepening data analysis services in real economy sectors like education, culture, and operators), and **"pioneering innovation"** (accelerating vertical application iteration of industry large models, breaking through multimodal data fusion and automated compliance auditing)[55](index=55&type=chunk) [Other Information](index=19&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) [Purchase, Sale or Redemption of the Company's Listed Securities](index=19&type=section&id=%E8%B3%BC%E5%85%A5%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 - Neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities during the current period[56](index=56&type=chunk) [Changes in Directors' Information](index=20&type=section&id=%E8%91%A3%E4%BA%8B%E8%B3%87%E6%96%99%E8%AE%8A%E5%8B%95) For the six months ended June 30, 2025, Mr. Li Yunjiu was appointed as an executive director on February 14, 2025, and Dr. Wang Bangyi resigned as an executive director on July 23, 2025 Changes in Directors' Information | Director Name | Change Details | | :--- | :--- | | Mr. Li Yunjiu | Appointed as Executive Director on February 14, 2025 | | Dr. Wang Bangyi | Resigned as Executive Director on July 23, 2025 | [Corporate Governance and Other Information](index=20&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) The Company generally complies with the Corporate Governance Code, except for Code Provision C.2.1 regarding the separation of Chairman and CEO roles, with Chairman Mr. Gu Zhongli overseeing strategy and supervision while executive directors and senior management monitor daily operations, a structure the Board believes ensures a balance of power and authority - The Company complies with the Corporate Governance Code, except for Code Provision C.2.1 regarding the separation of roles between the Chairman and Chief Executive Officer[57](index=57&type=chunk)[58](index=58&type=chunk) - Following Dr. Wang Bangyi's resignation as CEO, the Company has no CEO position, with Chairman Mr. Gu Zhongli responsible for strategy formulation and supervision, while daily operations are monitored by executive directors and senior management[58](index=58&type=chunk) - All Directors confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers throughout the current period[59](index=59&type=chunk) [Review by Audit Committee](index=21&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83%E4%B9%8B%E5%AF%A9%E9%96%B1) The Audit Committee reviewed the Group's adopted accounting principles and practices, discussed internal controls and financial reporting matters, and examined the unaudited condensed consolidated financial statements for the six months ended June 30, 2025 - The Audit Committee reviewed accounting principles, internal controls, and financial reporting matters, and examined the unaudited condensed consolidated financial statements for the current period[60](index=60&type=chunk) [Publication of Interim Report on the HKEX Website](index=21&type=section&id=%E6%96%BC%E8%81%AF%E4%BA%A4%E6%89%80%E7%B6%B2%E7%AB%99%E5%88%8A%E7%99%BB%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) The 2025 interim report will be dispatched to shareholders and published on the HKEX website and the Company's website in due course - The 2025 interim report will be dispatched to shareholders and published on the HKEX and Company websites[61](index=61&type=chunk)

[Interim Results Summary](index=1&type=section&id=Interim%20Results%20Summary) This section provides a high-level overview of the Group's financial performance and key highlights for the interim period [Financial Summary](index=1&type=section&id=Financial%20Summary) The Group reported a loss attributable to shareholders of RMB 185.8 million and a 14.1% revenue decrease due to lower product prices Key Financial Indicators for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Loss attributable to shareholders | 185.8 | 129.7 | 56.1 (increase) | 43.25% | | Revenue | 1,100 | 1,280 | (180) (decrease) | -14.06% | | Net cash outflow from operating activities (before changes and interest/tax) | 32.8 | (62.9) (inflow) | (95.7) (decrease) | -152.15% | | Basic loss per share (RMB cents) | 3.08 | 2.15 | 0.93 (increase) | 43.26% | - Revenue decrease was primarily due to lower product selling prices[3](index=3&type=chunk) - The directors do not recommend paying any interim dividend[4](index=4&type=chunk) [Interim Results](index=2&type=section&id=Interim%20Results) This section presents the Group's unaudited condensed consolidated financial statements for the interim period [Unaudited Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) The Group's revenue decreased by 14.1% to RMB 1,099,955 thousand, with gross profit turning into a loss and period loss expanding Condensed Consolidated Statement of Profit or Loss (RMB thousand) | Indicator | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | 1,099,955 | 1,279,855 | | Cost of sales | (1,131,957) | (1,200,229) | | Gross profit/(loss) | (32,002) | 79,626 | | Operating profit/(loss) | (112,267) | (5,462) | | Finance costs | (102,629) | (110,385) | | Loss before tax | (214,896) | (115,847) | | Loss for the period | (194,281) | (135,073) | | Loss attributable to owners of the Company | (185,789) | (129,665) | | Basic loss per share (RMB cents) | (3.08) | (2.15) | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Total assets decreased, net current liabilities remained high at RMB 3,265,424 thousand, and total equity significantly reduced to RMB 165,304 thousand Condensed Consolidated Statement of Financial Position (RMB thousand) | Indicator | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | **Assets** | | | | Non-current assets | 4,424,935 | 4,401,085 | | Current assets | 431,482 | 1,012,722 | | **Total assets** | **4,856,417** | **5,413,807** | | **Equity** | | | | Equity attributable to owners of the Company | 217,430 | 403,219 | | Non-controlling interests | (52,126) | (43,634) | | **Total equity** | **165,304** | **359,585** | | **Liabilities** | | | | Non-current liabilities | 994,207 | 788,143 | | Current liabilities | 3,696,906 | 4,266,079 | | **Total liabilities** | **4,691,113** | **5,054,222** | | Net current liabilities | (3,265,424) | (3,253,357) | [Unaudited Condensed Consolidated Statement of Cash Flows](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) Operating cash inflow increased to RMB 177,295 thousand, but investing cash outflow significantly rose due to increased capital expenditures Condensed Consolidated Statement of Cash Flows (RMB thousand) | Indicator | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Net cash from operating activities | 199,535 | 113,343 | | Interest paid | (22,240) | (35,835) | | Net cash inflow from operating activities | 177,295 | 77,508 | | Net cash outflow from investing activities | (86,871) | (8,299) | | Net cash outflow from financing activities | (69,487) | (79,383) | | Increase/(decrease) in cash and cash equivalents | 20,937 | (10,174) | | Cash and cash equivalents at June 30 | 29,036 | 52,754 | - Significant increase in payments for property, plant and equipment and construction in progress led to a substantial rise in net cash outflow from investing activities[8](index=8&type=chunk) [Unaudited Consolidated Statement of Changes in Equity](index=6&type=section&id=Unaudited%20Consolidated%20Statement%20of%20Changes%20in%20Equity) Total equity attributable to owners of the Company significantly decreased to RMB 165,304 thousand due to an expanded net loss for the period Consolidated Statement of Changes in Equity (RMB thousand) | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total equity at beginning of period | 359,585 (January 1, 2025) | 911,815 (January 1, 2024) | | Net loss for the period | (194,281) | (135,073) | | Total equity at end of period | 165,304 | 778,606 | [Notes to the Financial Statements](index=7&type=section&id=Notes%20to%20the%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the Group's interim financial statements [1. Basis of Preparation](index=7&type=section&id=1.%20Basis%20of%20Preparation) The Group's core business is chemical production and sales in Mainland China, with financial statements prepared under HKAS 34 and Listing Rules - The Group's principal business is the production and sale of chemical products and chemical fertilizers in Mainland China[10](index=10&type=chunk) - The interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and Appendix 16 of the Listing Rules of the Stock Exchange[10](index=10&type=chunk) [2. Significant Accounting Policies](index=7&type=section&id=2.%20Significant%20Accounting%20Policies) Accounting policies are consistent with 2024, and despite net current liabilities, the going concern basis is adopted due to expected cash flows and loan restructuring - Significant accounting policies remain consistent with the 2024 annual financial statements[11](index=11&type=chunk) - The Group had **net current liabilities of RMB 3,696,906 thousand** as of June 30, 2025[11](index=11&type=chunk) - The directors adopted the going concern basis based on the assumption of positive cash flows from Guang'an and Dazhou plants and successful restructuring of bank loans[11](index=11&type=chunk) [3. Revenue](index=7&type=section&id=3.%20Revenue) Revenue, primarily from chemical and fertilizer sales in China, decreased by 14.1% to RMB 1,099,955 thousand, with methanol sales up and others down - Revenue represents the net amount received from the sale of chemical products and chemical fertilizers, after deducting returns, discounts, and value-added tax, primarily from China[13](index=13&type=chunk) Revenue by Product Category (RMB thousand) | Product | H1 2025 | % of Total | H1 2024 | % of Total | | :--- | :--- | :--- | :--- | :--- | | Urea | 305,929 | 27.8 | 355,449 | 27.8 | | Ammonia | 324,247 | 29.5 | 431,285 | 33.7 | | Methanol | 468,471 | 42.6 | 419,183 | 32.7 | | NMP | 222 | 0.0 | 2,149 | 0.2 | | DMF | 1,086 | 0.1 | 3,013 | 0.2 | | Others | – | – | 68,776 | 5.4 | | **Total** | **1,099,955** | **100** | **1,279,855** | **100** | [4. Reconciliation of Loss Before Tax to Cash Generated from Operations](index=8&type=section&id=4.%20Reconciliation%20of%20Loss%20Before%20Tax%20to%20Cash%20Generated%20from%20Operations) Loss before tax was RMB 214,896 thousand, while net cash from operations improved to RMB 199,535 thousand, driven by increased payables Reconciliation of Loss Before Tax to Cash Generated from Operations (RMB thousand) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Loss before tax | (214,896) | (115,847) | | Depreciation of property, plant and equipment | 82,725 | 71,886 | | Interest expense | 102,629 | 110,385 | | Operating cash flow before working capital changes | (32,832) | 62,913 | | Increase/(decrease) in trade and other payables | 154,371 | 210,882 | | Cash generated from operations | 199,555 | 132,569 | | Net cash generated from operations after tax | 199,535 | 113,343 | [5. Taxation](index=9&type=section&id=5.%20Taxation) No profits tax provision was made for non-PRC entities, while PRC subsidiaries face a 25% rate, with a tax deduction of RMB 20,615 thousand - The Group generated no taxable profits in the Cayman Islands, British Virgin Islands, or Hong Kong, and no provision for profits tax was made[16](index=16&type=chunk) - The applicable income tax rate for PRC subsidiaries is **25%**[17](index=17&type=chunk) Tax Deduction (RMB thousand) | Tax Category | H1 2025 | H1 2024 | | :--- | :--- | :--- | | PRC enterprise income tax | 20 | 26,258 | | Deferred income tax | (20,635) | (7,032) | | **Total** | **(20,615)** | **19,226** | [6. Earnings Per Share](index=9&type=section&id=6.%20Earnings%20Per%20Share) Basic and diluted loss per share expanded to RMB 3.08 cents, reflecting the increased loss for the period Earnings Per Share (RMB cents) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Loss for the period (RMB thousand) | (185,789) | (129,665) | | Basic loss per share (RMB cents) | (3.08) | (2.15) | | Diluted loss per share (RMB cents) | (3.08) | (2.15) | | Weighted average number of shares for basic earnings per share (thousand shares) | 6,028,043 | 6,028,043 | [7. Dividends](index=10&type=section&id=7.%20Dividends) The Board does not recommend paying any interim dividend for the six months ended June 30, 2025 - The Board does not recommend paying any interim dividend[20](index=20&type=chunk) [8. Trade and Other Receivables](index=10&type=section&id=8.%20Trade%20and%20Other%20Receivables) Total trade and other receivables decreased to RMB 156,008 thousand, with a typical credit period of zero to three months Trade and Other Receivables (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade receivables | 2,436 | 2,407 | | Prepayments, deposits for purchases and other deposits | 19,888 | 40,658 | | Bills receivable | 1,253 | 21 | | Other receivables | 132,431 | 151,693 | | **Total** | **156,008** | **194,779** | - The Group generally grants a credit period of zero to three months[21](index=21&type=chunk) [9. Trade and Other Payables](index=11&type=section&id=9.%20Trade%20and%20Other%20Payables) Total trade and other payables increased to RMB 830,231 thousand, primarily due to a significant rise in accruals and other payables Trade and Other Payables (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables | 50,030 | 41,812 | | Payables for construction work | 230,667 | 218,132 | | Accruals and other payables | 549,534 | 342,094 | | **Total** | **830,231** | **602,038** | Ageing Analysis of Trade Payables (RMB thousand) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Less than one year | 41,646 | 33,428 | | Over one year but not exceeding two years | 8,384 | 8,384 | | **Total** | **50,030** | **41,812** | [10. Borrowings](index=12&type=section&id=10.%20Borrowings) Total borrowings were RMB 2,165,310 thousand, mostly short-term, secured by fixed assets and deposits, with interest rates from 3.00% to 8.70% Analysis of Borrowings by Repayment Period (RMB thousand) | Repayment Period | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Less than one year | 1,925,926 | 2,720,656 | | One to two years | 128,373 | 74,290 | | Two to five years | 111,011 | – | | **Total borrowings** | **2,165,310** | **2,794,946** | | Included in current liabilities | (1,925,926) | (2,720,656) | | Included in non-current liabilities | 239,384 | 74,290 | - Borrowings are generally secured by certain fixed assets and pledged bank deposits of the Group[23](index=23&type=chunk) - Borrowings bear interest at annual rates ranging from **3.00% to 8.70%** (2024: 3.45% to 8.64%)[23](index=23&type=chunk) [11. Deferred Income Tax](index=13&type=section&id=11.%20Deferred%20Income%20Tax) Deferred tax assets increased to RMB 36,834 thousand from recognized losses, while deferred tax liabilities remained at RMB 114,033 thousand Deferred Income Tax Assets (RMB thousand) | Item | Amount | | :--- | :--- | | As of December 31, 2024 | 16,199 | | Recognized in profit or loss | 20,635 | | As of June 30, 2025 | 36,834 | Deferred Income Tax Liabilities (RMB thousand) | Item | Amount | | :--- | :--- | | As of December 31, 2024 | (114,033) | | As of June 30, 2025 | (114,033) | [Management Discussion and Analysis](index=14&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's perspective on the Group's financial performance, business operations, and future outlook [Financial Performance](index=14&type=section&id=Financial%20Performance) Revenue decreased by 14.1% to RMB 1,100 million due to lower prices, while loss attributable to shareholders expanded to RMB 185.8 million - Revenue was approximately **RMB 1,100 million**, a **14.1% decrease** from the same period last year, primarily due to lower product selling prices[26](index=26&type=chunk) - Loss attributable to shareholders was approximately **RMB 185.8 million**, an increase of **RMB 56.1 million** from the same period last year, mainly due to a decrease in gross profit margin[26](index=26&type=chunk)[27](index=27&type=chunk) - Total sales volume (excluding trading portion) reached approximately **546,000 tons**, a slight increase of approximately **1.3%** from the same period last year[26](index=26&type=chunk) - Gross profit margin decreased from approximately **6.2%** in the same period last year to **-2.9%**, mainly due to lower product market prices[27](index=27&type=chunk) [Business Review](index=15&type=section&id=Business%20Review) The Group enhanced efficiency and risk resistance through internal improvements, but operating performance was below expectations due to low product prices - The Group operated actively and steadily, enhancing production efficiency and risk resistance through technological improvements, cost control, and sales model adjustments[28](index=28&type=chunk) - In H1 2025, performance in safety, environmental protection, production, consumption, marketing, and cost control all improved further from the historical best levels of 2024[29](index=29&type=chunk) - Despite achieving historical best internal results, operating performance was slightly below expectations due to sluggish product selling prices[29](index=29&type=chunk) [Guang'an Jiuyuan Plant](index=16&type=section&id=Guang%27an%20Jiuyuan%20Plant) Guang'an Jiuyuan Plant resumed production, improving output and energy consumption, but operating performance was below expectations due to low selling prices - Guang'an Jiuyuan Plant resumed production on **January 3, 2025**, improving output and energy consumption through technological upgrades and cost control[30](index=30&type=chunk) - Despite achieving historical best results, operating performance fell short of expectations due to sluggish finished product selling prices[30](index=30&type=chunk) [Dazhou Jiuyuan Plant](index=16&type=section&id=Dazhou%20Jiuyuan%20Plant) Dazhou Jiuyuan Plant resumed production, achieving good output and energy consumption after overhaul, but operating performance was below expectations - Dazhou Jiuyuan Plant resumed production on **February 10**, achieving good levels of output and energy consumption through annual overhaul and continuous optimization[31](index=31&type=chunk) - Operating performance failed to meet expectations due to sluggish finished product selling prices[31](index=31&type=chunk) [Guang'an Jiuyuan Electronic Materials Plant](index=16&type=section&id=Guang%27an%20Jiuyuan%20Electronic%20Materials%20Plant) The plant was idled due to low demand, but optimization efforts significantly improved DMF stability and NMP capacity, reducing costs - Guang'an Jiuyuan Electronic Materials Plant was idled in the first half due to sluggish market demand[32](index=32&type=chunk) - Through equipment optimization and capacity-increasing technical modifications, DMF unit stability and NMP unit capacity were significantly improved, and production costs were effectively reduced[32](index=32&type=chunk) [Jiangsu Blue Planet Plant](index=17&type=section&id=Jiangsu%20Blue%20Planet%20Plant) The propylene oxide project's main construction is complete, entering commissioning, with an estimated annual new sales revenue of RMB 4 billion - The main construction of Jiangsu Blue Planet Environmental Technology Co., Ltd.'s propylene oxide project is largely complete, entering the commissioning, testing, and procedural stages[33](index=33&type=chunk) - After commissioning, this project is expected to generate approximately **RMB 4 billion** in new annual sales revenue[33](index=33&type=chunk) [Industry Review and Outlook](index=17&type=section&id=Industry%20Review%20and%20Outlook) H1 2025 saw volatile or sluggish markets for DMF, NMP, methanol, synthetic ammonia, and urea, characterized by oversupply and weak demand - In H1 2025, the domestic DMF market showed an 'M'-shaped trend, with overall market levels still below the same period last year, characterized by strong supply and weak demand[34](index=34&type=chunk) - The NMP market was sluggish, with mature recycling technology compressing the synthetic liquid market space, leading to severe supply-demand structural mismatch[37](index=37&type=chunk) - In H1 2025, the methanol market rose first then fell, dominated by macro-control and supply-demand structure, with ample supply and declining demand in Q2[39](index=39&type=chunk) - The synthetic ammonia market showed a trend of initial decline then rise then decline, with increased supply pressure and weak downstream demand[40](index=40&type=chunk)[41](index=41&type=chunk) - The urea market exhibited a phased characteristic of 'initial strength then weakness,' with high supply and weak demand in Q2, leading to volatile downward market trends[43](index=43&type=chunk) [Dimethylformamide (DMF)](index=17&type=section&id=Dimethylformamide%20(DMF)) DMF market saw an "M"-shaped trend with prices below last year, driven by strong supply, weak demand, and fluctuating seasonal factors - In H1 2025, domestic DMF total capacity was **1.8 million tons** (effective capacity **1.5 million tons**), with an industry operating rate of **48.5%**, and supply of approximately **437,000 tons**[34](index=34&type=chunk) - The market showed an 'M'-shaped trend, with overall prices lower than the same period last year, and transactions often involved price reductions due to strong supply and weak demand[34](index=34&type=chunk) - Demand before the Spring Festival drove prices up, followed by a decline after the holiday due to high prices and increased supply, then a rebound due to destocking and recovering downstream demand, but subsequently faced renewed pressure from high operating rates and reduced demand[35](index=35&type=chunk)[36](index=36&type=chunk) [N-Methylpyrrolidone (NMP)](index=18&type=section&id=N-Methylpyrrolidone%20(NMP)) NMP market was sluggish due to dominant recycling capacity compressing synthetic liquid space, though prices rose in June due to BDO and waste liquid shortages - In H1 2025, NMP synthetic liquid supply capacity was approximately **1.01 million tons**, with a capacity utilization rate of approximately **20%**, and recycling capacity approached **2.8 million tons**[37](index=37&type=chunk) - Recycling has dominated the NMP market, leading to a compression of the synthetic liquid market space[37](index=37&type=chunk) - After June, NMP prices significantly increased to their highest point in the first half at **RMB 10,200/ton** due to rising BDO prices and a shortage of NMP recycling waste liquid[37](index=37&type=chunk) [Methanol](index=18&type=section&id=Methanol) Methanol production increased, but the market saw an initial rise then fall, with ample supply and declining demand in Q2, despite a brief June surge - In H1 2025, domestic methanol production was approximately **42.74 million tons**, a **8%** year-on-year increase; average operating rate was **81%**, a **4%** year-on-year increase[38](index=38&type=chunk) - The market rose first then fell, with demand increasing in Q1; in Q2, influenced by macro factors, supply was ample while downstream demand declined, and prices bottomed out[39](index=39&type=chunk) - In June, influenced by the Middle East conflict, crude oil prices rose, and methanol market prices surged accordingly, but the upward trend lasted only about **10 days** before falling back[39](index=39&type=chunk) [Synthetic Ammonia](index=19&type=section&id=Synthetic%20Ammonia) Synthetic ammonia production increased, but the market saw a decline-rise-decline trend, with increased supply pressure and weak demand in Q2 - In H1 2025, domestic synthetic ammonia production was approximately **30.98 million tons**, a **4%** year-on-year increase; average industry operating rate was **79%**, a **1%** year-on-year decrease[40](index=40&type=chunk) - The market showed a trend of initial decline then rise then decline, with ample supply in January, firm prices in February due to downstream resumption, and rapid price increases in March due to reduced supply from maintenance units[40](index=40&type=chunk) - From April to June, resumed maintenance units increased supply pressure, the downstream phosphate compound fertilizer industry entered the off-season, and operating rates declined, leading to a downward market trend and bottoming out prices[41](index=41&type=chunk) [Urea](index=20&type=section&id=Urea) Urea production increased, but the market showed an "initial strength then weakness" trend, with high supply, weak demand, and falling prices in Q2 - In H1 2025, domestic urea production was approximately **35.67 million tons**, a **10%** year-on-year increase; average operating rate was approximately **84%**, a **6.7%** year-on-year increase[42](index=42&type=chunk) - The market exhibited a phased characteristic of 'initial strength then weakness,' with prices rising in Q1 due to strong export expectations and spring farming demand[43](index=43&type=chunk) - In Q2, high supply and weak demand led to volatile downward market trends, with export policies falling short of expectations, weak domestic demand, and continuously falling prices[43](index=43&type=chunk) [Strategies](index=20&type=section&id=Strategies) The Group implemented cost reduction and revenue enhancement strategies in H1 and will focus on supply, efficiency, sales, and new projects in H2 for sustainable development - In H1, production and operating costs were reduced through technological transformation and overhaul work, achieving historically low unit production consumption[44](index=44&type=chunk)[45](index=45&type=chunk) - Optimized the full-category bidding model, dynamically adjusted the bidding-to-order ratio, and controlled sales pace to maximize benefits[45](index=45&type=chunk) - H2 strategies include: ensuring raw material supply for production, promoting 'increasing revenue and reducing expenditure, cost reduction and efficiency improvement' measures, optimizing performance appraisal and salary reform, and strengthening employee training[45](index=45&type=chunk)[21](index=21&type=chunk) - Implemented sales model optimization, expanded high-quality customer base, developed new types of urea, improved the bidding model, and increased sales of differentiated urea[46](index=46&type=chunk) - Prepared for annual equipment overhauls, explored the feasibility of extending overhaul cycles from one year to two years, and reduced spare parts inventory[46](index=46&type=chunk) - Promoted new project approval, commencement, and construction, revitalized existing assets, achieved product upgrades, and transitioned from basic chemicals to fine chemicals[48](index=48&type=chunk) - Focused on 'two major projects': steam energy-saving renovation and synthetic ammonia energy-saving and carbon reduction renovation, and advanced the introduction of a second natural gas source for the industrial park[48](index=48&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=23&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) This section details the Group's liquidity position, available financial resources, and overall capital structure [Liquidity](index=23&type=section&id=Liquidity) The Group had net current liabilities of RMB 3,265,424 thousand, with current assets and liabilities detailed - As of June 30, 2025, the Group had **net current liabilities of approximately RMB 3,265,424 thousand**[47](index=47&type=chunk) Current Assets and Liabilities as of June 30, 2025 (RMB thousand) | Item | Amount | | :--- | :--- | | **Current Assets** | | | Cash and bank balances | 29,036 | | Restricted and pledged bank deposits | 60,918 | | Inventories | 185,520 | | Trade and other receivables | 156,008 | | **Current Liabilities** | | | Borrowings | 1,925,926 | | Amounts due to a related company | 837,257 | | Trade and other payables and other current liabilities | 933,723 | [Capital Commitments](index=24&type=section&id=Capital%20Commitments) The Group had outstanding capital commitments of approximately RMB 215,918 thousand as of June 30, 2025 - As of June 30, 2025, the Group had outstanding capital commitments of approximately **RMB 215,918 thousand**[50](index=50&type=chunk) [Financial Resources](index=24&type=section&id=Financial%20Resources) The Group held RMB 29,036 thousand in cash and RMB 60,918 thousand in restricted deposits, with no unutilized credit, planning to fund operations via existing balances and cash flows - As of June 30, 2025, the Group had cash and bank balances of approximately **RMB 29,036 thousand** and restricted and pledged bank deposits of approximately **RMB 60,918 thousand**[51](index=51&type=chunk) - The Group had no unutilized bank credit facilities[51](index=51&type=chunk) - The Company intends to fund future operations through existing bank balances and cash flows from operating activities[51](index=51&type=chunk) [Gearing Ratio](index=24&type=section&id=Gearing%20Ratio) The gearing ratio increased to **94%**, up from 88%, indicating a rise in net debt relative to total capital Gearing Ratio | Date | Gearing Ratio | | :--- | :--- | | June 30, 2025 | 94% | | December 31, 2024 | 88% | - The gearing ratio is calculated based on net debt divided by total capital[52](index=52&type=chunk) [Contingent Liabilities](index=24&type=section&id=Contingent%20Liabilities) The Group had no significant contingent liabilities as of June 30, 2025 - As of June 30, 2025, the Group had no significant contingent liabilities[53](index=53&type=chunk) [Other Information](index=24&type=section&id=Other%20Information) This section covers additional disclosures and information not presented elsewhere in the financial report [Material Acquisitions/Disposals](index=24&type=section&id=Material%20Acquisitions%2FDisposals) The Group had no material acquisitions or disposals during the six months ended June 30, 2025 - For the six months ended June 30, 2025, the Group had no material acquisitions or disposals[54](index=54&type=chunk) [Segment Information](index=24&type=section&id=Segment%20Information) No segment information is presented as the Group's operations are primarily in China and within a single business segment - The Group's operations are primarily conducted in China and fall under the same business segment, thus no segment information is presented[55](index=55&type=chunk) [Details of Future Plans for Material Investments or Capital Assets](index=25&type=section&id=Details%20of%20Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) No other material investment plans exist beyond the disclosed new production lines at Dazhou, Guang'an Chemical, Guang'an Materials, and Jiangsu Plants - Apart from the disclosed plans for three new production lines at Dazhou Plant, Guang'an Chemical Plant, and Guang'an Materials Plant, and the Jiangsu Plant, there are no other material investment plans[56](index=56&type=chunk) [Employees Information](index=25&type=section&id=Employees%20Information) The Group had 709 employees as of June 30, 2025, a decrease from 2024, with most based in China for production - As of June 30, 2025, the Group had a total of **709 employees** (2024: 821 employees), with **707** based in China[57](index=57&type=chunk) Employee Distribution by Function | Function | June 30, 2025 | 2024 | | :--- | :--- | :--- | | Management | 4 | 3 | | Finance and Administration | 109 | 112 | | Production | 588 | 693 | | Sales and Marketing and R&D | 8 | 13 | | **Total** | **709** | **821** | [Pledge of the Group's Assets](index=25&type=section&id=Pledge%20of%20the%20Group%27s%20Assets) Land use rights, buildings, equipment, mining rights, and bank deposits were pledged as collateral for borrowings and bills payable Value of Pledged Assets (RMB thousand) | Asset Category | June 30, 2025 | 2024 | | :--- | :--- | :--- | | Land use rights and buildings | 317,414 | 492,526 | | Plant and machinery | 650,105 | 912,999 | | Mining rights | 334,306 | 334,306 | | Bank deposits | 60,412 | 576,600 | - Fixed assets were pledged as collateral for the Group's borrowings and bills payable[58](index=58&type=chunk) [Foreign Exchange Risk](index=25&type=section&id=Foreign%20Exchange%20Risk) The Group faces foreign exchange risk from HKD-denominated loans, with management monitoring and considering hedging - The Group faces foreign exchange risk, primarily due to certain loans denominated in HKD[60](index=60&type=chunk) - Management monitors foreign exchange risk and considers hedging when necessary[60](index=60&type=chunk) [Share Option Scheme](index=26&type=section&id=Share%20Option%20Scheme) The Company has 363,992 thousand outstanding share options, with 186,312,259 options still available for grant under the scheme Details of Outstanding Share Options (thousand shares) | Option Category | Held as of January 1, 2025 | Forfeited/Lapsed during the period | Held as of June 30, 2025 | | :--- | :--- | :--- | :--- | | Directors (Shi Jianmin) | 300,000 | – | 300,000 | | Employees | 78,812 | (14,820) | 63,992 | | **Total** | **378,812** | **(14,820)** | **363,992** | - Exercise price for Option A is **HKD 0.151**, Option B is **HKD 0.141**, and Option C is **HKD 0.182**[61](index=61&type=chunk) - As of June 30, 2025, **186,312,259 share options** remained available for grant under the share option scheme adopted on October 23, 2020[62](index=62&type=chunk) [Outstanding Convertible Securities](index=27&type=section&id=Outstanding%20Convertible%20Securities) The Company has one outstanding convertible security, convertible into 7,700,000 thousand shares, which would significantly increase Mr. Tang Kwok Keung's shareholding Details of Outstanding Convertible Securities | Maturity Date | Conversion Price (HKD) | Number of Shares Convertible (thousand shares) | Redeemability | | :--- | :--- | :--- | :--- | | November 29, 2026 | 0.108 | 7,700,000 | None | Shareholding Structure Before and After Conversion of Outstanding Convertible Securities (Approximate) | Shareholder | Number of Shares Before Conversion | Percentage Before Conversion | Number of Shares After Conversion | Percentage After Conversion | | :--- | :--- | :--- | :--- | :--- | | Mr. Tang Kwok Keung | 169,800,000 | 2.82% | 7,869,800,000 | 57.33% | | Mr. Shi Jianmin | 107,000,000 | 1.78% | 107,000,000 | 0.78% | | Mr. Zhang Weihua | 500,000,000 | 8.29% | 500,000,000 | 3.64% | | Public Shareholders | 5,251,242,599 | 87.11% | 5,251,242,599 | 38.25% | | **Total** | **6,028,042,599** | **100.00%** | **13,728,042,599** | **100.00%** | - Assuming full conversion of all outstanding convertible securities, Mr. Tang Kwok Keung's shareholding would significantly increase[65](index=65&type=chunk) [Directors' Interests in the Company](index=29&type=section&id=Directors%27%20Interests%20in%20the%20Company) As of June 30, 2025, Mr. Tang Kwok Keung, Mr. Shi Jianmin, and Mr. Zhang Weihua held long positions in the Company's shares and underlying shares Directors' Long Positions in Shares and Underlying Shares of the Company | Director | Long Position in Shares (Beneficial Owner) | Long Position in Share Options and Convertible Bonds (Beneficial Owner) | Total Long Position in Shares and Underlying Shares | Interest in Issued Share Capital | | :--- | :--- | :--- | :--- | :--- | | Mr. Tang Kwok Keung | 169,800,000 | 7,700,000,000 | 7,869,800,000 | 130.55% | | Mr. Shi Jianmin | 107,000,000 | 300,000,000 | 407,000,000 | 6.75% | | Mr. Zhang Weihua | 500,000,000 | – | 500,000,000 | 8.29% | - Mr. Tang Kwok Keung holds certain shares through his wholly-owned Coherent Gallery International Limited[67](index=67&type=chunk) - Mr. Zhang Weihua indirectly owns certain shares through Jiangsu Kangtai Holding Group Co., Ltd[67](index=67&type=chunk) [Substantial Shareholders' Interests in the Company](index=30&type=section&id=Substantial%20Shareholders%27%20Interests%20in%20the%20Company) No other substantial shareholders' interests or short positions are known, apart from the disclosed directors' interests - Save for the disclosed directors' interests, the Company is not aware of any other persons having interests or short positions in the shares or underlying shares that would be required to be disclosed to the Company and the Stock Exchange under Part XV of the Securities and Futures Ordinance[68](index=68&type=chunk) [Other Persons' Interests in the Company](index=30&type=section&id=Other%20Persons%27%20Interests%20in%20the%20Company) No other persons are known to hold 5% or more voting rights in the Company's share capital, apart from disclosed directors' interests - Save for the disclosed directors' interests, the Company is not aware of any other persons having interests of **5% or more** in any class of share capital carrying voting rights at general meetings of the Company in all circumstances[69](index=69&type=chunk) [Directors' Interests in Competing Business](index=30&type=section&id=Directors%27%20Interests%20in%20Competing%20Business) No directors, management shareholders, or their associates held interests in competing businesses during the review period - During the review period, none of the Company's directors or management shareholders and their associates had any interests in businesses that compete or are likely to compete with the Company's business[70](index=70&type=chunk) [Going Concern and Mitigation Measures](index=31&type=section&id=Going%20Concern%20and%20Mitigation%20Measures) The Group faces bank litigations but has implemented measures to improve liquidity and restructured most bank loans - The Group is involved in certain litigations with banks and has taken multiple measures to improve its liquidity and financial position[71](index=71&type=chunk) - The Group has been negotiating with banks to renew or restructure loans, and most bank loans have been restructured[71](index=71&type=chunk) [Code for Securities Transactions by Directors](index=31&type=section&id=Code%20for%20Securities%20Transactions%20by%20Directors) The Company adopted and all directors complied with a code for securities transactions no less exacting than the required standard - The Company has adopted a code for securities transactions by directors no less exacting than the required standard[72](index=72&type=chunk) - The Company is not aware of any non-compliance by any director with the required standard for securities transactions and the code for securities transactions by directors[72](index=72&type=chunk) [Purchase, Sale or Redemption of Shares](index=31&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Shares) Neither the Company nor its subsidiaries purchased, sold, or redeemed any listed shares during the review period - During the review period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed shares[73](index=73&type=chunk) [Events After Reporting Period](index=31&type=section&id=Events%20After%20Reporting%20Period) No material events occurred after the reporting period end and up to the approval date of this announcement - There were no material events concerning the Group after the end of the reporting period and up to the date of approval of this announcement[74](index=74&type=chunk) [Audit Committee](index=31&type=section&id=Audit%20Committee) The Audit Committee reviewed the interim financial statements and discussed internal controls and financial reporting with management - The Audit Committee reviewed the Company's and the Group's unaudited interim financial statements for the six months ended June 30, 2025[76](index=76&type=chunk) - The Audit Committee comprises three independent non-executive directors: Mr. Xu Congcai, Mr. Le Yiren, and Ms. Lu Yi[75](index=75&type=chunk) [Corporate Governance](index=32&type=section&id=Corporate%20Governance) The Company has taken appropriate actions and complied with the Corporate Governance Code provisions in Appendix 14 of the Listing Rules - The Company has taken appropriate actions to comply with the Corporate Governance Code contained in Appendix 14 of the Listing Rules[77](index=77&type=chunk) - The Group has complied with the code provisions contained therein[77](index=77&type=chunk)

2025 中期報告 香港聯合交易所有限公司（「聯交所」）GEM（「GEM」）的特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司比起其他在聯交所 上市的公司帶有較高投資風險。有意投資人士應了解投資於該等公司的潛在風險， 並應經過審慎周詳的考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較在聯交所主板 買賣之證券承受較大市場波動風險，同時無法保證在GEM買賣的證券會有高流通 量的市場。 香港交易及結算所有限公司及聯交所對本報告之內容概不負責，對其準確性或完整 性亦不發表任何聲明，並明確表示概不就因本報告全部或任何部份內容而產生或因 倚賴該等內容而引致之任何損失承擔任何責任。 本報告的資料乃遵照GEM證券上市規則（「GEM上市規則」）而刊載，旨在提供有關 浙江升華蘭德科技股份有限公司（「本公司」）的資料。本公司董事（「董事」）願就本報告 所載資料共同及個別承擔全部責任。董事在作出一切合理查詢後，確認就其所知及 所信：(i)本報告所載資料在各重要方面均屬準確完備，沒有誤導或欺詐成份；及(ii) 且無遺漏其他事項，足以令致本報告或其所載任何陳述產生誤導。 概要 董事會（ ...

[Cover and Disclaimer](index=1&type=section&id=Cover%20and%20Disclaimer) [GEM Features and Disclaimer](index=1&type=section&id=GEM%20Features%20and%20Disclaimer) This semi-annual report for Tianjin TEDA Biomedical Engineering Co., Ltd. on GEM is confirmed by directors as accurate, with the Stock Exchange disclaiming responsibility - GEM is positioned as a listing market for small and medium-sized companies with **high investment risk**, where securities may be subject to **significant market volatility**[2](index=2&type=chunk) - The company's directors jointly and individually assume **full responsibility** for the information in this announcement, confirming its **accuracy, completeness, and absence of misleading content**[2](index=2&type=chunk) [Summary](index=2&type=section&id=Summary) [Financial Highlights](index=2&type=section&id=Financial%20Highlights) Group turnover increased by 7.01% and gross profit by 14.07%, but loss attributable to equity holders expanded to RMB 6.43 million, with no dividend recommended 2025 H1 Financial Highlights | Indicator | 2025 H1 (RMB) | 2024 H1 (RMB) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Consolidated Turnover | 226,407,014 | 211,568,049 | +7.01% | | Consolidated Gross Profit | 13,820,662 | 12,115,570 | +14.07% | | Loss Attributable to Equity Holders of the Company | (6,426,384) | (4,123,183) | Loss expanded | | Loss Per Share | 0.317 cents | 0.218 cents | Loss expanded | - The Board **does not recommend** the payment of a dividend for the six months ended June 30, 2025[4](index=4&type=chunk) [Semi-Annual Results (Unaudited)](index=3&type=section&id=Semi-Annual%20Results%20%28Unaudited%29) [Condensed Consolidated Income Statement](index=3&type=section&id=Condensed%20Consolidated%20Income%20Statement) Turnover increased to RMB 226.41 million and gross profit to RMB 13.82 million, but increased R&D and administrative expenses led to an expanded loss of RMB 8.43 million Condensed Consolidated Income Statement (For the six months ended June 30) | Indicator | 2025 (RMB) | 2024 (RMB) | | :--- | :--- | :--- | | Turnover | 226,407,014 | 211,568,049 | | Cost of Sales | (212,586,352) | (199,452,479) | | Gross Profit | 13,820,662 | 12,115,570 | | Other Expenses and Losses / Income, Net | 235,587 | (50,195) | | Selling and Distribution Costs | (3,960,302) | (7,053,114) | | Research and Development and Administrative Expenses | (16,551,751) | (8,559,614) | | Finance Costs | (1,973,895) | (1,977,660) | | (Loss) / Profit Before Tax | (8,429,699) | (5,525,013) | | Income Tax | – | – | | (Loss) / Profit for the Period | (8,429,699) | (5,525,013) | | (Loss) / Profit for the Period Attributable to Owners of the Company | (6,426,384) | (4,123,183) | | (Loss) / Profit for the Period Attributable to Non-controlling Interests | (2,003,313) | (1,401,830) | | Loss Per Share - Basic (RMB) | 0.317 cents | 0.218 cents | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Total assets increased to RMB 415.16 million, net current assets turned positive to RMB 29.71 million, and total equity grew to RMB 100.91 million Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Total Non-current Assets | 98,078,794 | 98,533,260 | | Total Current Assets | 317,084,756 | 233,993,789 | | Total Assets | 415,163,551 | 332,527,049 | | Total Current Liabilities | 287,372,895 | 279,065,167 | | Net Current Assets | 29,711,861 | (45,071,379) | | Total Non-current Liabilities | 26,884,872 | 25,021,945 | | Net Assets | 100,905,783 | 28,439,937 | | Equity Attributable to Owners of the Company | 96,618,228 | 22,149,069 | | Total Equity | 100,905,783 | 28,439,937 | [Condensed Consolidated Statement of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) Operating cash flow shifted to a net outflow of RMB 98.40 million, investing activities to a net inflow of RMB 6.72 million, and financing activities significantly increased to a net inflow of RMB 78.55 million Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Indicator | 2025 (RMB) | 2024 (RMB) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (98,397,585) | 8,044,015 | | Net Cash From Investing Activities | 6,718,101 | (748,742) | | Net Cash From Financing Activities | 78,550,043 | 4,970,000 | | Net Change in Cash and Bank Balances | (13,129,441) | 12,265,273 | | Cash and Bank Balances at End of Period | 52,270,511 | 18,199,595 | - Net cash inflow from financing activities primarily resulted from the issuance of shares, amounting to **RMB 81,190,043**[8](index=8&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [1. Basis of Presentation and Accounting Policies](index=7&type=section&id=1.%20Basis%20of%20Presentation%20and%20Accounting%20Policies) Financial statements are prepared under HKFRS and GEM Listing Rules on a going concern basis, with no significant impact from new standards - The financial statements are prepared under the **historical cost convention** and **Hong Kong Financial Reporting Standards**, on a **going concern basis**[9](index=9&type=chunk) - New and revised Hong Kong Financial Reporting Standards adopted during the period had **no significant impact** on the Group's unaudited operating results and financial position[9](index=9&type=chunk) [2. Revenue](index=7&type=section&id=2.%20Revenue) Total revenue reached RMB 226.41 million, with fertilizer products contributing RMB 182.99 million and elderly care and health business significantly growing to RMB 43.42 million Revenue Analysis (For the six months ended June 30) | Business Category | 2025 (RMB) | 2024 (RMB) | | :--- | :--- | :--- | | Fertilizer Products | 182,987,005 | 211,314,827 | | Elderly Care and Health | 43,420,010 | 253,222 | | Total | 226,407,014 | 211,568,049 | - Revenue from elderly care and health business **significantly increased** from **RMB 253,222** in 2024 to **RMB 43,420,010** in 2025[10](index=10&type=chunk) [3. Finance Costs](index=7&type=section&id=3.%20Finance%20Costs) Finance costs, mainly bank loan interest and charges, totaled RMB 1.97 million, remaining largely consistent with the prior year Finance Costs (For the six months ended June 30) | Item | 2025 (RMB) | 2024 (RMB) | | :--- | :--- | :--- | | Bank Loan Interest Expenses and Bank Charges | 1,973,895 | 1,977,660 | [4. Taxation](index=8&type=section&id=4.%20Taxation) Corporate income tax rate is 25%, with preferential rates for high-tech (15%) and small enterprises (5%), and zero income tax expense in Hong Kong and China - Guangdong Fulilong Compound Fertilizer Co., Ltd. enjoys a **15% preferential tax rate** as a high-tech enterprise[11](index=11&type=chunk) - Some Chinese subsidiaries qualify as small enterprises, enjoying a **5% preferential income tax rate**[11](index=11&type=chunk) Income Tax Expense (For the six months ended June 30) | Jurisdiction | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Hong Kong | – | – | | Other Jurisdictions | – | – | - Income tax expenses in Hong Kong and China were **zero** for the period[12](index=12&type=chunk) [5. Loss Per Share](index=9&type=section&id=5.%20Loss%20Per%20Share) Basic loss per share attributable to owners expanded to RMB 0.317 cents, up from RMB 0.218 cents, due to increased loss and weighted average shares Loss Per Share Calculation (For the six months ended June 30) | Indicator | 2025 (RMB) | 2024 (RMB) | | :--- | :--- | :--- | | Loss for Calculation of Basic Loss Per Share | (6,426,384) | (4,123,183) | | Weighted Average Number of Ordinary Shares | 2,024,487,845 | 1,894,500,000 | [6. Additions to Property, Plant and Equipment](index=9&type=section&id=6.%20Additions%20to%20Property%2C%20Plant%20and%20Equipment) Expenditure on property, plant, and equipment additions was approximately RMB 834,918, an increase from the prior year - The Group's expenditure on additions to property, plant and equipment during the period was approximately **RMB 834,918** (2024: RMB 613,742)[16](index=16&type=chunk) [7. Trade and Bills Receivables](index=10&type=section&id=7.%20Trade%20and%20Bills%20Receivables) Net trade receivables significantly increased to RMB 34.22 million, driven by a rise in receivables aged within three months, with ongoing credit assessments Trade and Bills Receivables (As of June 30) | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Trade Receivables, Net | 34,217,576 | 10,818,520 | Ageing Analysis of Trade Receivables (As of June 30) | Ageing | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Within 3 Months | 29,372,239 | 1,257,380 | | Over 3 Months but Within 6 Months | 62,237 | 3,717,203 | | Over 6 Months | 4,783,099 | 5,843,937 | [8. Prepayments and Other Receivables](index=11&type=section&id=8.%20Prepayments%20and%20Other%20Receivables) Total prepayments and other receivables increased to RMB 146.61 million, primarily driven by higher net other receivables and deposits and prepayments Prepayments and Other Receivables (As of June 30) | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Other Receivables, Net | 12,749,745 | 3,490,539 | | Deposits and Prepayments | 133,859,849 | 78,976,908 | | Total | 146,609,595 | 82,467,447 | [9. Trade Payables](index=11&type=section&id=9.%20Trade%20Payables) Total trade payables significantly increased to RMB 33.08 million, mainly due to a notable rise in payables aged within three months Ageing Analysis of Trade Payables (As of June 30) | Ageing | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Within 3 Months | 27,782,169 | 2,180,601 | | Over 3 Months but Within 6 Months | 20,467 | 166,500 | | Over 6 Months | 5,281,368 | 6,584,577 | | Total | 33,084,003 | 8,931,678 | [10. Other Payables and Accruals](index=12&type=section&id=10.%20Other%20Payables%20and%20Accruals) Total other payables and accruals increased to RMB 81.59 million, primarily driven by an increase in other payables Other Payables and Accruals (As of June 30) | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Other Payables | 58,578,315 | 31,008,970 | | Consideration for Acquisition of a Subsidiary | 2,206,900 | 2,206,900 | | Accruals | 4,141,108 | 6,278,834 | | Advances Received | 13,379,852 | 13,379,852 | | Amounts Due to Directors | 322,381 | 315,000 | | Social Welfare Fund Payable | 2,965,152 | 2,965,152 | | Total | 81,593,708 | 56,154,708 | [11. Share Capital](index=12&type=section&id=11.%20Share%20Capital) Authorized and issued share capital increased, with domestic shares growing significantly, bringing total par value to RMB 213.39 million Share Capital Structure (As of June 30) | Category | Number of Shares as of June 30, 2025 | Par Value as of June 30, 2025 (RMB thousands) | Number of Shares as of December 31, 2024 | Par Value as of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Authorized Share Capital | 2,133,900,000 | 213,390 | 1,894,500,000 | 189,450 | | Issued and Fully Paid Domestic Shares | 1,436,400,000 | 143,640 | 697,500,000 | 69,750 | | Issued and Fully Paid H Shares | 697,500,000 | 69,750 | 1,197,000,000 | 119,700 | | Total | 2,133,900,000 | 213,390 | 1,894,500,000 | 189,450 | [12. Capital Commitments](index=12&type=section&id=12.%20Capital%20Commitments) The Group had no significant capital commitments not provided for in the condensed consolidated financial statements as of June 30, 2025 - As of June 30, 2025, the Group had **no significant capital commitments** not provided for in its condensed consolidated financial statements[23](index=23&type=chunk) [13. Contingent Liabilities](index=12&type=section&id=13.%20Contingent%20Liabilities) The company provided guarantees for bank facilities to subsidiaries amounting to RMB 0, consistent with the prior year - The company has provided guarantees for bank facilities granted to certain subsidiaries amounting to **RMB 0** (June 2024: RMB 0)[24](index=24&type=chunk) [Interim Dividend](index=13&type=section&id=Interim%20Dividend) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board **does not recommend** the payment of an interim dividend for the six months ended June 30, 2025 (June 2024: nil)[25](index=25&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=13&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) Equity attributable to owners significantly increased from RMB 22.15 million to RMB 96.62 million, driven by share issuance despite a period loss Condensed Consolidated Statement of Changes in Equity (As of June 30) | Item | June 30, 2025 (RMB) | June 30, 2024 (RMB) | | :--- | :--- | :--- | | Balance at January 1 | 22,149,069 | 49,951,308 | | Net Profit Attributable to Equity Holders of the Company | (6,426,384) | (4,123,183) | | Issuance of Shares | 80,895,544 | 0 | | Balance at June 30 | 96,618,228 | 45,828,125 | - The issuance of shares resulted in an equity increase of **RMB 80,895,544**[26](index=26&type=chunk) [Management Discussion and Analysis](index=14&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=14&type=section&id=Business%20Review) The Group operates in bio-compound fertilizers, AI medical elderly care, and data services, focusing on large medical models and comprehensive data solutions - The Group's three major business areas are **bio-compound fertilizers, AI medical elderly care, and data services**[27](index=27&type=chunk) - The AI medical elderly care business collaborates with hospitals under Peking University Health Science Center to develop serious medical large models based on **millions of real patient cases**[27](index=27&type=chunk) - The data business, as a core ecological partner of Shenzhen Institute of Advanced Computing, provides end-to-end services including **data cleaning, database construction, and intelligent data analysis**[27](index=27&type=chunk) [Compound Fertilizer Business](index=15&type=section&id=Compound%20Fertilizer%20Business) H1 2025 saw structural adjustments in compound fertilizer raw materials, with rising potash prices and stable downstream demand, while the Group's business covers diverse products with comprehensive management - In H1 2025, potash prices increased by **15%-20%**, becoming the primary driver of rising compound fertilizer costs[29](index=29&type=chunk) - Downstream demand for compound fertilizers remained stable with progress, showing **strong resilience and vitality** in the economic crop sector[29](index=29&type=chunk) - The Group's compound fertilizer products include high-tower compound fertilizers, sulfur-based, chlorine-based, and nitrate-based types, characterized by **high nutrient content and environmental friendliness**[32](index=32&type=chunk) - Through informatization, the Group has established a comprehensive operational management model across five business segments: **procurement, production, marketing, logistics, and finance**[32](index=32&type=chunk) [Compound Fertilizer Industry Development](index=15&type=section&id=Compound%20Fertilizer%20Industry%20Development) H1 2025 saw structural adjustments in raw materials, with nitrogen prices falling, potash rising, and compound fertilizer prices fluctuating, while downstream demand remained resilient - Nitrogen fertilizer prices showed an overall **downward trend** in H1, constrained by overcapacity and export restrictions[29](index=29&type=chunk) - Tight potash supply dominated the market, with a **15%-20% increase** in H1, becoming the core driver of rising compound fertilizer costs[29](index=29&type=chunk) - Compound fertilizer prices exhibited a divergent trend of "**rising in Q1 and high-level fluctuations in Q2**"[29](index=29&type=chunk) - Downstream demand remained stable with progress, showing **extremely strong resilience and vitality** in the economic crop sector[29](index=29&type=chunk) - Market trends necessitate fertilizer enterprises to continuously **research and develop new products**, improve product quality and efficacy, and strengthen environmental protection facilities[31](index=31&type=chunk) [Group's Compound Fertilizer Business Development](index=16&type=section&id=Group%27s%20Compound%20Fertilizer%20Business%20Development) The Group's compound fertilizer business offers diverse products for various crops, supported by strategic procurement, sales-driven production, and multi-channel distribution - Products primarily include **high-tower compound fertilizers**, categorized by nutrient source (**sulfur-based, chlorine-based, nitrate-based**) and type (**high-concentration, micro-element, water-soluble, slow/controlled-release, seaweed, bio-fertilizers, crop-specific, horticultural fertilizers**)[32](index=32&type=chunk) - Procurement models include **strategic procurement and order-based procurement**, establishing long-term partnerships with major raw material suppliers[33](index=33&type=chunk) - Production is **sales-driven**, with bases in Weifang, Shandong and Dongguan, Guangdong, and expanded offerings of liquid and water-soluble compound fertilizers to meet market demand[33](index=33&type=chunk) - Marketing primarily uses **distributor networks**, established the well-known brand "Fulilong", and built e-commerce sales platforms[33](index=33&type=chunk) [AI Medical Elderly Care Business](index=18&type=section&id=AI%20Medical%20Elderly%20Care%20Business) The Group manages 50 elderly care institutions under 'Ruifu Elderly Care' and, through share placements and collaboration with Peking University, developed the bilingual 'Xihe-1' AI medical large model, trained on millions of real patient cases - The Group's core elderly care team has been engaged in elderly care since 1999, establishing the "**Ruifu Elderly Care**" brand and managing **50 elderly care institutions in Shanghai**[34](index=34&type=chunk) - In H1 2025, two rounds of share placements were completed, raising net proceeds of approximately **HKD 88.8 million** for purchasing and developing AI medical health software platforms[35](index=35&type=chunk) - Collaborated with hospitals under Peking University Health Science Center to establish Beijing Boya Quan Jian Smart Computing Technology Co., Ltd., focusing on the deep integration of **artificial intelligence and medical health technology**[36](index=36&type=chunk) - Jointly developed the bilingual "**Xihe-1**" medical large model with Peking University Third Hospital over ten years, trained on **millions of real patient cases** using closed-source data, achieving an accuracy rate of **over 90%**[37](index=37&type=chunk) - Key advantages of "**Xihe-1**" include training on closed data, **pathology evidence-driven decision-making**, and a dual engine of "**natural language interaction + traceable knowledge reasoning**" empowering clinical decisions[37](index=37&type=chunk)[38](index=38&type=chunk) - Jointly developed the "**Xihe-1**" pre-diagnosis and triage integrated machine with Xiamen Hongxin Electronics Technology Group subsidiary Suihong Huachuang, with plans for focused promotion in **grassroots medical care**[38](index=38&type=chunk) [Data Business](index=21&type=section&id=Data%20Business) The Group established Shenzhen Yishu Jingcheng Technology Co., Ltd. for data governance, providing high-quality data for AI medical models and full-process data services to clients, supported by strategic partnerships - Established controlling subsidiary Shenzhen Yishu Jingcheng Technology Co., Ltd. as an officially certified **core ecological partner of Shenzhen Institute of Advanced Computing**, engaging in data governance[40](index=40&type=chunk) - Yishu Jingcheng provides **high-quality data** for the company's AI medical large model training and offers external clients end-to-end services including **data cleaning, intelligent analysis, and customized model training**[40](index=40&type=chunk) - Achieved strategic cooperation with Peking University Third Hospital to jointly develop "**Xihe-1**" and acquire **millions of real patient cases** of closed-source medical data for training[40](index=40&type=chunk) - Signed a strategic cooperation agreement with China Telecom Digital Intelligence Technology Co., Ltd. Ningxia Branch to jointly build a **medical health ecosystem platform** and an "**AI + Medical Health**" industrial park[41](index=41&type=chunk) - Signed an ecological cooperation agreement with Shenzhen Institute of Advanced Computing, where Yishu Jingcheng handles client engagement and demand identification, and Shenzhen Institute of Advanced Computing provides technical support including **Yashan Database, Caishiqi Data Quality System, and Diaoyucheng Data Analysis System**[41](index=41&type=chunk) [Financial Performance Review](index=24&type=section&id=Financial%20Performance%20Review) Turnover grew 7.01%, gross profit 14.07%, and gross margin to 6.10%, but a 93.37% surge in R&D and administrative expenses led to an expanded loss Key Financial Indicators Change (For the six months ended June 30) | Indicator | 2025 (RMB) | 2024 (RMB) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Total Turnover | 226,407,014 | 211,568,049 | +7.01% | | Consolidated Gross Profit | 13,820,662 | 12,115,570 | +14.07% | | Operating Consolidated Gross Profit Margin | 6.10% | 5.73% | +0.37% | | Selling and Distribution Costs | 3,960,302 | 7,053,114 | -43.85% | | Research and Development and Administrative Expenses | 16,551,751 | 8,559,614 | +93.37% | | Finance Costs | 1,973,895 | 1,977,660 | -0.19% | | Loss Attributable to Equity Holders of the Company | 6,426,384 | 4,123,183 | Loss expanded | - The growth in operating revenue was primarily attributable to the **rapid development of the elderly care and health business segment**[42](index=42&type=chunk) - The decrease in selling and distribution costs was mainly due to **strengthened expense control**, achieving cost reduction and efficiency improvement through travel expense reimbursement system reform and refined channel management[43](index=43&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=25&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) Bank and cash balances were RMB 52.27 million, short-term borrowings decreased, total assets and equity grew, and financial health improved with lower debt ratios and a current ratio of 1.10 Liquidity and Capital Structure Indicators (As of June 30) | Indicator | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Bank and Cash Balances | 52,270,511 | 65,399,950 | | Short-term Borrowings | 83,830,000 | 134,670,000 | | Total Assets | 415,163,551 | 332,527,049 | | Shareholders' Equity | 100,905,783 | 28,439,937 | | Consolidated Debt-to-Asset Ratio | 0.76 | 0.91 | | Capital-to-Debt Ratio | 0.24 | 0.45 | | Current Ratio | 1.10 | 0.84 | - Primary funding sources were **bank financing and proceeds from share placements**[47](index=47&type=chunk) - Short-term borrowing interest rates ranged from **2.90% to 3.55%**[47](index=47&type=chunk) [Pledges of Assets and Contingent Liabilities](index=25&type=section&id=Pledges%20of%20Assets%20and%20Contingent%20Liabilities) As of June 30, 2025, the Group and company had contingent liabilities of RMB 0 for pledges and guarantees related to subsidiary bank loans - As of June 30, 2025, the Group and the company had contingent liabilities of **RMB 0** for pledges and guarantees provided for bank loans granted to its subsidiaries[49](index=49&type=chunk) [Foreign Currency Risk](index=25&type=section&id=Foreign%20Currency%20Risk) Foreign currency risk is minimal as all Group sales and payments are settled in RMB - All the Group's sales and payments are settled in **RMB**, thus the foreign currency risk faced is **minimal**[50](index=50&type=chunk) [Treasury Policy](index=25&type=section&id=Treasury%20Policy) Bank borrowings are RMB-settled and typically renewed annually, with cash balances deposited in licensed Chinese banks - The Group's bank borrowings are settled in **RMB** and generally **renewed for one year** upon maturity[51](index=51&type=chunk) - Any cash balances are deposited as funds in **licensed banks in China**[51](index=51&type=chunk) [Outlook](index=26&type=section&id=Outlook) The company will focus on R&D and commercialization of AI medical large models and data businesses, deepening partnerships to enhance existing elderly care services with AI - The company will continue to fully commit to the **R&D and commercialization** of AI medical large models and data businesses[52](index=52&type=chunk) - Deepen cooperation with top-tier hospitals like Peking University Third Hospital and Peking University People's Hospital, utilizing **real patient case data for model training**[52](index=52&type=chunk) - Deepen cooperation with Shenzhen Institute of Advanced Computing, providing **end-to-end data services** for medical institutions, enterprises, government departments, and industry AI applications[52](index=52&type=chunk) - Deeply empower existing elderly care services with AI medical technology to **enhance service efficiency and quality**[52](index=52&type=chunk) [Other Information](index=26&type=section&id=Other%20Information) [Directors' and Supervisors' Interests in Shares, Related Shares and Debentures](index=26&type=section&id=Directors%27%20and%20Supervisors%27%20Interests) As of June 30, 2025, no directors, supervisors, or senior executives held notifiable interests or short positions in the company's or its associated corporations' securities - As of June 30, 2025, **none** of the company's directors, supervisors, or other senior executives held any **notifiable interests or short positions** in the securities, related shares, or debentures of the company or its associated corporations that require notification to the company and the Stock Exchange[53](index=53&type=chunk) [Rights to Acquire Shares by Directors and Supervisors](index=27&type=section&id=Rights%20to%20Acquire%20Shares%20by%20Directors%20and%20Supervisors) No arrangements existed during the review period for directors, supervisors, or their associates to acquire benefits by purchasing company shares - At no time during the review period did the company, its subsidiaries, or holding companies enter into **no arrangements** enabling the company's directors and supervisors, or their respective spouses or children under 18, to acquire benefits by purchasing the company's shares[54](index=54&type=chunk) [Major Shareholders](index=27&type=section&id=Major%20Shareholders) As of June 30, 2025, three major shareholders each held over 9.50% equity, with another holding 6.33% Major Shareholders' Shareholding (As of June 30) | Shareholder Name | Capacity | Number of Ordinary Shares | Percentage of Share Capital | | :--- | :--- | :--- | :--- | | Tianjin Economic-Technological Development Area State-owned Assets Management Co., Ltd. | Beneficial Owner | 182,500,000 | 9.63% | | Shenzhen Xiangyong Investment Co., Ltd. | Beneficial Owner | 180,000,000 | 9.50% | | Shenzhen Aopai Technology Co., Ltd. | Beneficial Owner | 180,000,000 | 9.50% | | Dongguan Luye Fertilizer Co., Ltd. | Beneficial Owner | 120,000,000 | 6.33% | - All disclosed shares are **domestic shares**[55](index=55&type=chunk) [Competing Interests](index=28&type=section&id=Competing%20Interests) No directors, supervisors, management shareholders, or their associates had any competing interests or conflicts of interest with the Group's business during the period - For the six months ended June 30, 2025, none of the company's directors, supervisors, or management shareholders and their respective associates had any existing or potential **no competing interests** with the Group's business, or any other existing or potential **no other conflicts of interest** with the Group[57](index=57&type=chunk) [Audit Committee](index=28&type=section&id=Audit%20Committee) The Audit Committee, chaired by Ms. Gao Chun and comprising three independent non-executive directors, reviews financial reporting, external audit, internal controls, and risk assessment, having reviewed the interim results - The Audit Committee comprises three independent non-executive directors: Mr. Tu Xiangzhen, Mr. Wang Yongkang, and Ms. Gao Chun, with **Ms. Gao Chun as Chairperson**[58](index=58&type=chunk) - The Committee's primary responsibilities include **reviewing and overseeing the Group's financial reporting process**, and assessing the effectiveness of **external audit, internal controls, and risk assessment**[58](index=58&type=chunk) - The Audit Committee has **reviewed the Group's interim results and interim report** for the six months ended June 30, 2025[58](index=58&type=chunk) [Share Option Scheme](index=28&type=section&id=Share%20Option%20Scheme) The company did not approve any new share option schemes during the period ended June 30, 2025 - During the period ended June 30, 2025, the company **did not approve any new share option schemes**[59](index=59&type=chunk) [Contracts of Significance](index=29&type=section&id=Contracts%20of%20Significance) During H1 2025, the company had no contracts of significance regarding the management or administration of its overall or major businesses - During H1 2025, the company had **no contracts of significance** regarding the management or administration of its overall business or any major business[60](index=60&type=chunk) [Code of Conduct for Securities Transactions by Directors](index=29&type=section&id=Code%20of%20Conduct%20for%20Securities%20Transactions%20by%20Directors) The company adopted a directors' securities transaction code no less stringent than GEM Listing Rules, confirming no non-compliance during the review period - The company has adopted a code of conduct with terms **no less stringent** than the required dealing standards set out in Rules 5.48 to 5.67 of the GEM Listing Rules[61](index=61&type=chunk) - The company is **unaware of any non-compliance** by directors with the required dealing standards and its code of conduct for securities transactions during the review period[61](index=61&type=chunk) [Purchase, Sale or Redemption of Securities](index=29&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Securities) In H1 2025, the company completed two share placements, raising HKD 88.8 million for AI medical software and working capital, with no other share transactions - On February 19, 2025, one round of share placement was completed, allotting **135,900,000 shares** and raising net proceeds of approximately **HKD 50.5 million**, for purchasing and developing AI medical health software platforms and working capital[62](index=62&type=chunk) - On May 8, 2025, a new round of share placement was completed, allotting **103,500,000 shares** and raising net proceeds of approximately **HKD 38.3 million**, for medical health software platform development, working capital, and potential investment opportunities[62](index=62&type=chunk) - Other than the aforementioned placements, neither the company nor its subsidiaries **purchased, sold, or redeemed any shares** during the period[62](index=62&type=chunk) [Corporate Governance Code](index=30&type=section&id=Corporate%20Governance%20Code) The company complied with all Corporate Governance Code provisions except for the non-separation of Chairman and CEO roles, which the Board deems in the company's best interest for now - The company complied with all provisions of the Code during the review period, **except for Code Provision A.2.1** (which states that the roles of chairman and chief executive should be separate)[63](index=63&type=chunk) - The Board believes that Ms. Sun Li concurrently holding the roles of Chairperson and Chief Executive Officer is currently in the company's **best interest**, facilitating policy continuity and operational stability[63](index=63&type=chunk) - The company will **comply with Code Provision A.2.1 as soon as practicable** to enhance corporate governance transparency and independence[63](index=63&type=chunk) [Interim Dividend (Reiteration)](index=30&type=section&id=Interim%20Dividend%20%28Reiteration%29) The Board resolved not to declare any interim dividend for the six months ended June 30, 2025 - The Board resolved **not to declare any interim dividend** for the six months ended June 30, 2025[64](index=64&type=chunk) [Board and Contact Information](index=30&type=section&id=Board%20and%20Contact%20Information) This announcement, published by Chairperson Ms. Sun Li on August 29, 2025, lists directors and provides GEM and company website access information - This announcement was published by Ms. Sun Li, Chairperson of the Board, on **August 29, 2025**[65](index=65&type=chunk)[66](index=66&type=chunk) - The company's executive director is **Sun Li**; non-executive directors are **He Xin, Li Xueying, and Li Ximing**; independent non-executive directors are **Tu Xiangzhen, Wang Yongkang, and Gao Chun**[66](index=66&type=chunk)

香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位乃為相比其他在聯交所上市的公司帶有較高投資風險的中小型公司提供一 個上市的市場。有意投資者應了解投資於該等公司的潛在風險，並應經過審慎周詳考 慮後方作出投資決定。 由於GEM上市公司通常為中小型公司，在GEM買賣的證券可能會較於主板買賣的證券 承受較大的市場波動風險，同時無法保證在GEM買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，對其準確性或完整性 亦不發表任何聲明，並明確表示，概不對因本報告全部或任何部分內容而產生或因依 賴該等內容而引致的任何損失承擔任何責任。 本報告乃根據聯交所GEM證券上市規則（「GEM上市規則」）提供有關智雲國際控股有限 公司（「本公司」，連同其附屬公司統稱為「本集團」）的資料；本公司董事（「董事」）願就本 報告共同及個別承擔全部責任。 各董事在作出一切合理查詢後確認，就彼等所深知及確信，本報告所載資料於所有重 要方面均屬準確完整，並無誤導或欺詐成份；及並無遺漏任何其他事宜致使本報告內 任何陳述或本報告產生誤導。 1 智雲國際控股有限公司 二零二五年中期報告 | 目錄 | | | ...