[Financial Summary](index=1&type=section&id=Financial%20Summary) For the six months ended June 30, 2025, the company reported significant declines in revenue and gross profit, shifting from profit to loss, with net assets increasing by 7.4% from year-end 2024 Key Financial Performance Indicators for the Six Months Ended June 30, 2025 | Indicator | June 30, 2025 (RMB Million) | June 30, 2024 (RMB Million) | Change (RMB Million) | Change Rate (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 201.3 | 379.0 | (177.7) | -46.9% | | Gross Profit | 11.8 | 21.7 | (9.9) | -45.6% | | Profit/Loss for the Period | (11.8) (Loss) | 0.3 (Profit) | (12.1) | Shift from profit to loss | | Net Assets (Period-end) | 511.4 | 476.0 (December 31, 2024) | 35.4 | +7.4% | - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025, consistent with the same period in 2024[4](index=4&type=chunk) [Interim Results](index=2&type=section&id=Interim%20Results) The company's interim results show a significant decline in financial performance, with revenue and gross profit decreasing, leading to a net loss for the period [Unaudited Condensed Consolidated Statement of Comprehensive Income](index=2&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the company experienced a significant decline in revenue and gross profit, leading to a shift from operating profit to loss, resulting in a net loss and basic loss per share of RMB 1.98 cents Key Data from Condensed Consolidated Statement of Comprehensive Income | Indicator | June 30, 2025 (RMB Thousand) | June 30, 2024 (RMB Thousand) | Change (RMB Thousand) | Change Rate (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 201,276 | 379,026 | (177,750) | -46.9% | | Cost of Revenue | (189,435) | (357,353) | 167,918 | -47.0% | | Gross Profit | 11,841 | 21,673 | (9,832) | -45.4% | | Administrative Expenses | (19,587) | (20,164) | 577 | -2.9% | | Operating (Loss)/Profit | (10,947) | 3,644 | (14,591) | Shift from profit to loss | | (Loss)/Profit Before Income Tax | (12,114) | 3,500 | (15,614) | Shift from profit to loss | | (Loss)/Profit and Total Comprehensive (Loss)/Income for the Period Attributable to Owners of the Company | (11,810) | 335 | (12,145) | Shift from profit to loss | | Basic (Loss)/Earnings Per Share (RMB Cents) | (1.98) | 0.07 | (2.05) | Shift from profit to loss | [Unaudited Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets and liabilities decreased, while total equity increased, primarily due to a rise in other reserves, leading to a 7.4% increase in net assets compared to the end of 2024 Key Data from Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | Change (RMB Thousand) | Change Rate (%) | | :--- | :--- | :--- | :--- | :--- | | Total Assets | 1,590,668 | 1,648,128 | (57,460) | -3.5% | | Non-current Assets | 68,817 | 70,844 | (2,027) | -2.9% | | Current Assets | 1,521,851 | 1,577,284 | (55,433) | -3.5% | | Total Equity | 511,403 | 475,976 | 35,427 | +7.4% | | Total Liabilities | 1,079,265 | 1,172,152 | (92,887) | -7.9% | | Non-current Liabilities | 110 | 23,389 | (23,279) | -99.5% | | Current Liabilities | 1,079,155 | 1,148,763 | (69,608) | -6.1% | [Notes](index=5&type=section&id=Notes) This section provides detailed notes on the company's general information, accounting policies, revenue, expenses, and financial position items [General Information](index=5&type=section&id=General%20Information) The company is an investment holding company incorporated in the Cayman Islands, primarily engaged in construction services in China, with its shares listed on the Main Board of the Hong Kong Stock Exchange on January 9, 2024 - The Company is an investment holding company primarily engaged in providing construction services in the People's Republic of China[9](index=9&type=chunk) - The Company's shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on January 9, 2024[10](index=10&type=chunk) [Basis of Preparation and Accounting Policies](index=5&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) The interim financial statements are prepared in accordance with HKAS 34, consistent with the accounting policies used for the annual consolidated financial statements as of December 31, 2024, with no significant impact from new or revised standards - The unaudited condensed consolidated interim financial statements have been prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[11](index=11&type=chunk) - The accounting policies adopted are consistent with those followed in the consolidated financial statements for the year ended December 31, 2024, and new or revised standards have no significant impact on the Group's results and financial position[11](index=11&type=chunk) [Revenue and Segment Information](index=6&type=section&id=Revenue%20and%20Segment%20Information) The Group primarily provides construction services, identified as a single operating segment, with revenue significantly decreasing to RMB 201,276 thousand for the six months ended June 30, 2025, from RMB 379,026 thousand in the prior year - The Group is principally engaged in providing construction services to customers and is determined by the Directors to be one operating segment[12](index=12&type=chunk)[13](index=13&type=chunk) Construction Service Revenue | Period | Revenue (RMB Thousand) | | :--- | :--- | | For the six months ended June 30, 2025 | 201,276 | | For the six months ended June 30, 2024 | 379,026 | - All revenue is derived from external customers in Mainland China[17](index=17&type=chunk) [Expenses by Nature](index=7&type=section&id=Expenses%20by%20Nature) For the six months ended June 30, 2025, total expenses (including cost of revenue and administrative expenses) significantly decreased to RMB 209,022 thousand from RMB 377,517 thousand in the prior period, primarily due to lower costs for raw materials, labor subcontracting, and equipment usage Details of Expenses by Nature | Expense Category | June 30, 2025 (RMB Thousand) | June 30, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Raw materials and consumables used | 100,513 | 146,025 | | Employee benefits expenses and labor subcontracting costs | 66,050 | 131,015 | | Professional construction subcontracting costs | 26,917 | 55,089 | | Equipment and machinery usage costs | 5,262 | 32,074 | | Design and testing service costs | 1,141 | 2,597 | | Depreciation and amortization expenses | 2,614 | 1,910 | | Listing expenses | — | 1,563 | | Total | 209,022 | 377,517 | [Net Finance Costs](index=7&type=section&id=Net%20Finance%20Costs) For the six months ended June 30, 2025, net finance costs increased from RMB 144 thousand to RMB 1,167 thousand, primarily due to higher factoring and bank borrowing interest expenses, coupled with reduced bank deposit interest income Details of Net Finance Costs | Item | June 30, 2025 (RMB Thousand) | June 30, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Interest income from bank deposits | 67 | 554 | | Factoring interest expenses | (290) | (32) | | Bank borrowing interest expenses | (939) | (652) | | Lease liabilities interest expenses | (5) | (14) | | Net finance costs | (1,167) | (144) | [Income Tax (Credit)/Expense](index=8&type=section&id=Income%20Tax%20%28Credit%29%2FExpense) For the six months ended June 30, 2025, the company recorded an income tax credit of RMB 304 thousand, compared to an expense of RMB 3,165 thousand in the prior period, mainly influenced by changes in deferred income tax Details of Income Tax (Credit)/Expense | Item | June 30, 2025 (RMB Thousand) | June 30, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Current income tax | 423 | 2,444 | | Deferred income tax | (727) | 721 | | Income tax (credit)/expense | (304) | 3,165 | [Loss/Earnings Per Share](index=8&type=section&id=Loss%2FEarnings%20Per%20Share) For the six months ended June 30, 2025, the company reported a basic loss per share of RMB 1.98 cents, compared to earnings per share of RMB 0.07 cents in the prior period, primarily due to the shift from profit to loss Loss/Earnings Per Share Data | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | (Loss)/Profit attributable to owners of the Company (RMB Thousand) | (11,810) | 335 | | Weighted average number of ordinary shares in issue | 597,281,768 | 509,142,857 | | Basic (Loss)/Earnings Per Share (RMB Cents) | (1.98) | 0.07 | - Diluted (loss)/earnings per share is equal to basic (loss)/earnings per share as there were no dilutive potential ordinary shares outstanding for the six months ended June 30, 2025 and 2024[22](index=22&type=chunk) [Dividends](index=8&type=section&id=Dividends) For the six months ended June 30, 2025, the company neither paid nor declared any dividends, consistent with the prior period - For the six months ended June 30, 2025, the Company neither paid nor declared any dividends (June 30, 2024: nil)[23](index=23&type=chunk) [Contract Assets and Trade Receivables](index=9&type=section&id=Contract%20Assets%20and%20Trade%20Receivables) As of June 30, 2025, net contract assets slightly decreased to RMB 980,253 thousand, while net trade receivables remained stable at RMB 241,175 thousand compared to year-end 2024, though the proportion of 1-2 year aged receivables increased Net Contract Assets and Trade Receivables | Item | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Net contract assets | 980,253 | 1,016,678 | | Net trade receivables | 241,175 | 240,360 | Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Within 1 year | 136,381 | 177,332 | | 1 to 2 years | 82,311 | 43,179 | | Over 2 years | 35,284 | 29,097 | | Total | 253,976 | 249,608 | [Trade and Other Payables](index=10&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables decreased to RMB 953,902 thousand from RMB 1,104,475 thousand at year-end 2024, primarily due to a significant reduction in trade payables within one year Total Trade and Other Payables | Item | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Trade payables | 935,075 | 1,086,289 | | Other payables and accrued expenses | 18,827 | 18,186 | | Total | 953,902 | 1,104,475 | Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Within 1 year | 129,255 | 284,479 | | 1 to 2 years | 388,539 | 369,326 | | Over 2 years | 417,281 | 432,484 | | Total | 935,075 | 1,086,289 | [Bank Borrowings](index=10&type=section&id=Bank%20Borrowings) As of June 30, 2025, total bank borrowings increased to RMB 69,582 thousand, all reclassified as current liabilities with no non-current portion, showing a significant rise in fixed-rate borrowings and the first appearance of unsecured borrowings Changes in Bank Borrowing Structure | Item | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Current bank borrowings | 69,582 | 33,008 | | Non-current bank borrowings | — | 23,346 | | Total | 69,582 | 56,354 | | Secured bank borrowings (fixed rate) | 40,000 | 30,028 | | Secured bank borrowings (floating rate) | — | 26,326 | | Unsecured bank borrowings (fixed rate) | 29,582 | — | - As of June 30, 2025, all bank borrowings were current liabilities due within one year, whereas on December 31, 2024, a portion was non-current[26](index=26&type=chunk) [Commitments](index=11&type=section&id=Commitments) As of June 30, 2025, the Group's capital commitments remained stable at RMB 5,000 thousand, consistent with year-end 2024, primarily for contracted but unprovided unlisted equity securities Capital Commitments | Item | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Contracted but not provided for: unlisted equity securities | 5,000 | 5,000 | [Management Discussion and Analysis](index=12&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the company's business operations, financial performance, liquidity, capital resources, and human resources for the reporting period [Business Review](index=12&type=section&id=Business%20Review) The company is a private general contracting construction enterprise in China, holding five Grade-I and six Grade-II construction qualifications, offering services including building, municipal, foundation, and specialized contracting, and has been recognized as a 'Shenzhen Top 500 Enterprise' for several consecutive years - The Company is a developing private general contracting construction enterprise in China, holding five Grade-I and six Grade-II construction contracting qualifications[28](index=28&type=chunk) - The Company primarily provides services including building construction, municipal public utility engineering, foundation engineering, and specialized contracting[28](index=28&type=chunk) - The Company has been selected as a "Shenzhen Top 500 Enterprise" for consecutive years from 2020 to 2024[28](index=28&type=chunk) [Financial Review](index=12&type=section&id=Financial%20Review) During the period, the company's revenue and gross profit significantly declined due to fewer construction projects, leading to a shift from profit to loss, with administrative expenses slightly decreasing but finance costs substantially increasing [Revenue](index=12&type=section&id=Revenue) For the six months ended June 30, 2025, the company's revenue significantly decreased by 46.9% year-on-year to RMB 201.3 million, primarily due to fewer construction projects, with building and municipal engineering revenues declining, while specialized contracting revenue surged by 501.3% - The Group's revenue decreased by approximately **RMB 177.7 million or 46.9%** from approximately RMB 379.0 million for the six months ended June 30, 2024, to approximately **RMB 201.3 million** for the six months ended June 30, 2025, primarily due to a reduction in construction projects[29](index=29&type=chunk) Revenue Breakdown by Project Type | Project Type | 2025 (RMB Thousand) | 2025 (%) | 2024 (RMB Thousand) | 2024 (%) | Change Rate (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Building construction projects | 103,518 | 51.4 | 246,900 | 65.1 | -58.1% | | Municipal public utility projects | 74,283 | 36.9 | 126,144 | 33.3 | -41.1% | | Foundation engineering projects | 2,009 | 1.0 | 2,412 | 0.6 | -16.7% | | Specialized contracting projects | 21,466 | 10.7 | 3,570 | 1.0 | +501.3% | | Total | 201,276 | 100.0 | 379,026 | 100.0 | -46.9% | - Revenue from specialized contracting projects significantly increased by **501.3%**, mainly due to the commencement of several projects with relatively higher contract values during the period[34](index=34&type=chunk) [Cost of Revenue](index=14&type=section&id=Cost%20of%20Revenue) For the six months ended June 30, 2025, cost of revenue decreased by 47.0% year-on-year to RMB 189.4 million, consistent with the decline in revenue, with raw material and labor subcontracting costs remaining the primary components - Cost of revenue for the six months ended June 30, 2025, decreased by approximately **RMB 167.9 million or 47.0%** compared to the same period last year, consistent with the decrease in revenue resulting from fewer construction projects[36](index=36&type=chunk) Cost of Revenue Breakdown by Nature | Cost Category | 2025 (RMB Thousand) | 2025 (%) | 2024 (RMB Thousand) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Raw materials cost | 100,513 | 53.1 | 146,025 | 40.9 | | Labor subcontracting cost | 52,939 | 27.9 | 118,278 | 33.1 | | Professional construction subcontracting cost | 26,917 | 14.2 | 55,089 | 15.4 | | Equipment and machinery usage cost | 5,262 | 2.8 | 32,074 | 9.0 | | Other project costs | 3,804 | 2.0 | 5,887 | 1.6 | | Total cost of revenue | 189,435 | 100.0 | 357,353 | 100.0 | [Gross Profit and Gross Profit Margin](index=15&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) Total gross profit decreased by 45.4% year-on-year, but the overall gross profit margin slightly increased to 5.9%, with building engineering project margins rising due to final settlement revenue recognition, while municipal engineering project margins declined due to lower margins on new projects Gross Profit and Gross Profit Margin by Project Type | Project Type | 2025 Gross Profit (RMB Thousand) | 2025 Gross Profit Margin (%) | 2024 Gross Profit (RMB Thousand) | 2024 Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Building construction projects | 7,003 | 6.8 | 14,905 | 6.0 | | Municipal public utility projects | 3,509 | 4.7 | 6,433 | 5.1 | | Foundation engineering projects | 119 | 5.9 | 147 | 6.1 | | Specialized contracting projects | 1,210 | 5.6 | 188 | 5.3 | | Total | 11,841 | 5.9 | 21,673 | 5.7 | - The gross profit margin for building construction projects increased from **6.0% to 6.8%**, primarily due to revenue recognition after final settlement for certain projects[37](index=37&type=chunk) - The gross profit margin for municipal public utility projects decreased from **5.1% to 4.7%**, mainly due to the commencement of several new projects with relatively lower gross profit margins during the period[38](index=38&type=chunk) [Administrative Expenses](index=15&type=section&id=Administrative%20Expenses) For the six months ended June 30, 2025, administrative expenses decreased by 2.9% to RMB 19.6 million, primarily due to no listing expenses recognized in the period, partially offset by increased depreciation of property, plant, and equipment - Administrative expenses decreased by approximately **RMB 0.6 million or 2.9%** for the six months ended June 30, 2025, primarily due to no listing expenses recognized during the period[41](index=41&type=chunk) [Finance Costs](index=16&type=section&id=Finance%20Costs) For the six months ended June 30, 2025, finance costs increased, primarily due to higher bank borrowing and factoring interest expenses, coupled with reduced bank deposit interest income - The increase in finance costs was primarily due to higher bank borrowing and factoring interest expenses, as well as a decrease in bank deposit interest income[42](index=42&type=chunk) [Income Tax Credit/(Expense)](index=16&type=section&id=Income%20Tax%20Credit%2F%28Expense%29) Income tax credit/(expense) primarily comprises corporate income tax and changes in deferred tax assets - Income tax credit/(expense) primarily comprises corporate income tax and changes in deferred tax assets[43](index=43&type=chunk) [Loss/Profit and Total Comprehensive Loss/Income for the Period](index=16&type=section&id=Loss%2FProfit%20and%20Total%20Comprehensive%20Loss%2FIncome%20for%20the%20Period) The Group shifted from profit to loss for the period, primarily due to decreased revenue and gross profit, and the recognition of impairment losses on trade and other receivables and contract assets - The Group shifted from a profit of approximately **RMB 0.3 million** for the six months ended June 30, 2024, to a loss of approximately **RMB 11.8 million** for the six months ended June 30, 2025[44](index=44&type=chunk) - The shift to loss was primarily due to decreased revenue and gross profit, as well as the recognition of impairment losses on trade and other receivables and contract assets[44](index=44&type=chunk) [Liquidity and Capital Resources](index=16&type=section&id=Liquidity%20and%20Capital%20Resources) The company's cash and cash equivalents remained stable, while total bank borrowings increased and were reclassified as current liabilities, leading to a higher gearing ratio, yet maintaining a net cash position, with ongoing liquidity risk monitoring and no significant foreign exchange exposure [Cash Flow](index=16&type=section&id=Cash%20Flow) As of June 30, 2025, the company's cash and cash equivalents were approximately RMB 99.7 million, a slight increase from year-end 2024, primarily utilized for daily operations and project-related working capital needs Cash and Cash Equivalents | Date | Amount (RMB Million) | | :--- | :--- | | June 30, 2025 | 99.7 | | December 31, 2024 | 96.7 | [Bank Borrowings](index=16&type=section&id=Bank%20Borrowings) As of June 30, 2025, current bank borrowings increased to RMB 69.6 million, with no non-current portion, showing a significant rise in fixed-rate borrowings and the first appearance of unsecured borrowings Bank Borrowing Structure | Item | June 30, 2025 (RMB Million) | December 31, 2024 (RMB Million) | | :--- | :--- | :--- | | Current bank borrowings | 69.6 | 33.0 | | Non-current bank borrowings | — | 23.3 | | Fixed-rate borrowings | 69.6 | 30.0 | | Floating-rate borrowings | — | 26.3 | [Gearing Ratio](index=17&type=section&id=Gearing%20Ratio) As of June 30, 2025, the gearing ratio increased to 13.6% from 11.8% at year-end 2024 Gearing Ratio | Date | Gearing Ratio (%) | | :--- | :--- | | June 30, 2025 | 13.6 | | December 31, 2024 | 11.8 | [Net Debt to Equity Ratio](index=17&type=section&id=Net%20Debt%20to%20Equity%20Ratio) The net debt to equity ratio is not applicable as the Group maintained a net cash position on both reporting dates - The net debt to equity ratio is not applicable as of June 30, 2025, and December 31, 2024, because the Group maintained a net cash position on both dates[48](index=48&type=chunk) [Prepayments to Suppliers](index=17&type=section&id=Prepayments%20to%20Suppliers) The Group's prepayments to suppliers primarily consist of advances to raw material suppliers and labor subcontractors, maintaining a policy of providing prepayments based on agreed percentages - The Group's prepayments to suppliers primarily consist of prepayments to raw material suppliers and labor subcontractors[49](index=49&type=chunk) - The Company maintains a policy of providing prepayments based on agreed percentages to ensure timely payments to workers[49](index=49&type=chunk) [Treasury Management](index=17&type=section&id=Treasury%20Management) The Group maintains sufficient cash and bank financing, with management continuously reviewing trade receivables and liquidity to manage liquidity risk - The Group maintains sufficient levels of cash and bank financing for its trading activities in the ordinary course of business[50](index=50&type=chunk) - Management closely monitors the Group's liquidity position to ensure its funding needs are met[50](index=50&type=chunk) [Capital Expenditure and Commitments](index=17&type=section&id=Capital%20Expenditure%20and%20Commitments) For the six months ended June 30, 2025, the Group incurred no capital expenditure, with capital commitments remaining at RMB 5.0 million - For the six months ended June 30, 2025, the Group incurred no capital expenditure (June 30, 2024: RMB 4.6 million)[51](index=51&type=chunk) Capital Commitments | Date | Amount (RMB Million) | | :--- | :--- | | June 30, 2025 | 5.0 | | December 31, 2024 | 5.0 | [Foreign Exchange Risk](index=17&type=section&id=Foreign%20Exchange%20Risk) The Group's majority of revenue and expenses are denominated in RMB, expecting no significant foreign exchange risk, and currently does not use financial instruments for hedging - The Group's majority of revenue and expenses are denominated in RMB, the functional currency of the Company, and is not expected to face any significant foreign exchange risk that could materially impact its operating results[52](index=52&type=chunk) - The Group has not used any financial instruments to hedge its current foreign exchange risk[52](index=52&type=chunk) [Pledge of Assets](index=18&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, land and buildings with a net book value of approximately RMB 43.6 million were pledged as collateral for certain interest-bearing bank borrowings Net Book Value of Pledged Assets | Date | Amount (RMB Million) | | :--- | :--- | | June 30, 2025 | 43.6 | | December 31, 2024 | 44.7 | - The pledged assets serve as collateral for certain interest-bearing bank borrowings[53](index=53&type=chunk) [Human Resources](index=18&type=section&id=Human%20Resources) As of June 30, 2025, the Group had 244 employees with total employee costs of approximately RMB 13.1 million, maintaining good employee relations and offering competitive remuneration and welfare programs - As of June 30, 2025, the Group had **244 employees**, all located in China[54](index=54&type=chunk) Total Employee Costs | Period | Amount (RMB Million) | | :--- | :--- | | For the six months ended June 30, 2025 | 13.1 | | For the six months ended June 30, 2024 | 12.7 | - The Group has established various welfare programs in accordance with Chinese laws and regulations and local government policies, including basic medical insurance, unemployment insurance, and other related insurances[54](index=54&type=chunk) [Prospects and Future Plans](index=18&type=section&id=Prospects%20and%20Future%20Plans) This section outlines the company's future outlook, driven by favorable government policies, and its plans for significant investments or acquisitions to expand market share [Prospects](index=18&type=section&id=Prospects) Driven by the '14th Five-Year Plan' and Guangdong Province's construction industry development plan, China's construction service demand is expected to grow, with Guangdong's construction market output value projected to increase at a CAGR of 5% to 8%, enabling the company to consolidate and expand its market share - The "14th Five-Year Plan for National Economic and Social Development" proposes accelerating infrastructure construction in China, including transportation, water conservancy, and energy, while the Guangdong Provincial Government has also issued a five-year development plan for the construction industry, anticipating continued growth in demand for construction services[55](index=55&type=chunk) - The total output value of Guangdong Province's construction market increased at a compound annual growth rate of approximately **9.4%** from 2020 to 2024, reaching approximately **RMB 2,636.4 billion** in 2024, and is expected to continue growing at a compound annual growth rate of approximately **5% to 8%**[55](index=55&type=chunk) - The Company will leverage its extensive experience and knowledge to consolidate and expand its construction service offerings, increase market share, and seize more opportunities[55](index=55&type=chunk) [Plans for Material Investments or Acquisitions of Capital Assets in the Future](index=19&type=section&id=Plans%20for%20Material%20Investments%20or%20Acquisitions%20of%20Capital%20Assets%20in%20the%20Future) The company plans to use approximately RMB 27.7 million from the net proceeds of new share subscriptions for potential acquisitions of construction companies with municipal public utility qualifications, with no legally binding agreements or specific targets identified yet - The Company plans to use approximately **RMB 27.7 million** of the net proceeds from the subscription of new shares for the potential acquisition of one or more construction companies with relevant qualifications and licenses for municipal public utility projects[56](index=56&type=chunk) - As of the date of this announcement, the Group has not entered into any letters of intent or legally binding agreements for such acquisitions, nor has it identified any specific acquisition targets[56](index=56&type=chunk) [Other Disclosures](index=19&type=section&id=Other%20Disclosures) This section provides additional disclosures regarding contingent liabilities, use of share issue proceeds, interim dividends, post-balance sheet events, corporate governance, and other compliance matters [Contingent Liabilities](index=19&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities (December 31, 2024: nil)[57](index=57&type=chunk) [Use of Proceeds from Share Issue](index=19&type=section&id=Use%20of%20Proceeds%20from%20Share%20Issue) The company utilized RMB 41.3 million of the RMB 77.3 million net IPO proceeds for project capital and working capital, with the remaining RMB 36.0 million allocated for equipment acquisition and staff recruitment; additionally, RMB 19.5 million from the RMB 47.2 million net proceeds of new share subscriptions in January 2025 was used for general working capital, and RMB 27.7 million for potential construction company acquisitions Use of Proceeds from Initial Public Offering | Use | Allocation as per Prospectus (RMB Million) | Utilized as of June 30, 2025 (RMB Million) | Unutilized as of June 30, 2025 (RMB Million) | Expected Timeline | | :--- | :--- | :--- | :--- | :--- | | Funding capital requirements and cash flow for certain projects | 35.3 | 35.3 | — | Not applicable | | Acquisition of equipment and machinery | 31.9 | — | 31.9 | Before December 31, 2025 | | Recruitment of additional staff | 5.4 | 1.3 | 4.1 | Before December 31, 2026 | | Working capital and other general corporate purposes | 4.7 | 4.7 | — | Not applicable | | Total | 77.3 | 41.3 | 36.0 | | Use of Proceeds from Subscription of New Shares under General Mandate | Use | Net Proceeds (RMB Million) | Utilized as of June 30, 2025 (RMB Million) | Unutilized as of June 30, 2025 (RMB Million) | Expected Timeline | | :--- | :--- | :--- | :--- | :--- | | Potential acquisition of construction companies | 27.7 | — | 27.7 | Before December 31, 2025 | | General working capital | 19.5 | 19.5 | — | Not applicable | | Total | 47.2 | 19.5 | 27.7 | | [Interim Dividends](index=20&type=section&id=Interim%20Dividends) The Directors do not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Directors do not recommend the payment of any interim dividend for the six months ended June 30, 2025[60](index=60&type=chunk) [Events After the Reporting Period](index=20&type=section&id=Events%20After%20the%20Reporting%20Period) On July 2, 2025, the company entered into agreements with six subscribers to subscribe for a total of 123,552,000 shares at HK$0.61 per share, with the subscription completed on July 17, 2025 - On July 2, 2025, the Company entered into six subscription agreements with six subscribers, respectively, to subscribe for a total of **123,552,000 shares** of the Company at a subscription price of **HK$0.61 per share**[61](index=61&type=chunk) - The subscription was completed on July 17, 2025[61](index=61&type=chunk) [Corporate Governance Practices](index=20&type=section&id=Corporate%20Governance%20Practices) The Board has reviewed the company's corporate governance practices and is satisfied that the company has complied with the principles and code provisions of the Corporate Governance Code in Appendix C1 Part 2 of the Listing Rules - The Board has reviewed the Company's corporate governance practices and is satisfied that the Company has complied with the principles and code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules[62](index=62&type=chunk) [Standard Code for Directors' Securities Transactions](index=21&type=section&id=Standard%20Code%20for%20Directors'%20Securities%20Transactions) The company has adopted a code of conduct for directors' securities transactions no less exacting than the Standard Code in Appendix C3 of the Listing Rules, with all directors confirming compliance and no non-compliance incidents identified - The Company has adopted a code of conduct for directors' securities transactions, the terms of which are no less exacting than the required standard set out in the Standard Code in Appendix C3 of the Listing Rules[63](index=63&type=chunk) - All Directors confirmed that they have complied with the required standards set out in the Standard Code and its code of conduct for directors' securities transactions for the six months ended June 30, 2025[63](index=63&type=chunk) [Competing Interests](index=21&type=section&id=Competing%20Interests) As of June 30, 2025, and up to the date of this announcement, no controlling shareholder, director, or their close associates held any interest in businesses competing directly or indirectly with the Group's operations - As of the six months ended June 30, 2025, and up to the date of this announcement, none of the controlling shareholders, Directors, or their respective close associates had any interest in any business that directly or indirectly competes with the Group's business[64](index=64&type=chunk) [Compliance Adviser's Interests](index=21&type=section&id=Compliance%20Adviser's%20Interests) The company has appointed Rich Harvest Finance Limited as its compliance adviser, and other than the compliance adviser agreement, neither the compliance adviser nor its directors, employees, or close associates have any notifiable interests related to the company - The Company has appointed Rich Harvest Finance Limited as its compliance adviser[65](index=65&type=chunk) - Save for the compliance adviser agreement entered into between the Company and the compliance adviser, neither the compliance adviser nor its directors, employees, or close associates have any interests in relation to the Company that need to be disclosed to the Company[65](index=65&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=21&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[66](index=66&type=chunk) [Audit Committee](index=21&type=section&id=Audit%20Committee) The Board's Audit Committee has reviewed the Group's adopted accounting principles and policies, internal controls, and financial reporting matters, including the unaudited condensed consolidated interim financial statements and interim results for the six months ended June 30, 2025 - The primary responsibilities of the Board's Audit Committee are to review and supervise the Group's financial reporting process and internal control and risk management systems[67](index=67&type=chunk) - The Audit Committee has reviewed the accounting principles and policies adopted by the Group, its internal controls, and financial reporting matters, including the unaudited condensed consolidated interim financial statements and the interim results for the six months ended June 30, 2025[67](index=67&type=chunk)[68](index=68&type=chunk) [Publication of Interim Report](index=22&type=section&id=Publication%20of%20Interim%20Report) The company's interim report for the six months ended June 30, 2025, containing all information required by the Listing Rules, will be timely provided to shareholders and published on the HKEX and company websites - The Company's interim report for the six months ended June 30, 2025, containing all information required by the Listing Rules, will be timely provided to the Company's shareholders and published on the HKEX and the Company's website in accordance with the Listing Rules[69](index=69&type=chunk)

[Performance Highlights](index=3&type=section&id=Performance%20Highlights) The Group's revenue increased by 7.6% for the six months ended June 30, 2025, but gross profit decreased by 1.8%, leading to a net loss attributable to shareholders of RMB 3.005 million [Overview of Key Financial Performance](index=3&type=section&id=Performance%20Highlights) For the six months ended June 30, 2025, the Group's revenue increased by 7.6%, but gross profit decreased by 1.8%, with gross margin falling to 37.2%, resulting in a loss attributable to shareholders of approximately RMB 3.005 million and basic loss per share of RMB 0.078, with no interim dividend declared Performance Highlights for H1 2025 | Interim Dividend | Zero | Zero | No Change | [Unaudited Condensed Consolidated Interim Results](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Interim%20Results) This section presents the unaudited condensed consolidated financial statements, including the statement of comprehensive loss, statement of financial position, statement of changes in equity, and statement of cash flows [Condensed Consolidated Statement of Comprehensive (Loss) / Income](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20(Loss)%20%2F%20Income) During the reporting period, revenue grew by 7.6% to RMB 98.023 million, but a 14.0% increase in cost of sales led to a 1.8% decline in gross profit, with the company turning from a profit of RMB 2.805 million to a loss of RMB 3.005 million Condensed Consolidated Statement of Comprehensive (Loss) / Income (For the six months ended June 30) | Basic (Loss) / Earnings Per Share (RMB) | (0.078) | 0.073 | Turned from Profit to Loss | [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets increased to RMB 345 million, total liabilities rose to RMB 230 million primarily due to increased borrowings, and total shareholders' equity slightly decreased to RMB 116 million Condensed Consolidated Statement of Financial Position (As of June 30) | Total Liabilities (RMB) | 229,653,652 | 219,288,040 | 4.7% Increase | [Condensed Consolidated Statement of Changes in Equity](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, total equity decreased from RMB 118.7 million to RMB 115.7 million, primarily due to a loss of RMB 3.005 million and other comprehensive loss of RMB 6,598 during the period Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30) | Total Equity (RMB) | 115,682,426 | 118,694,270 | Decrease of 3,011,844 | [Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, the company reported a net cash outflow of RMB 0.341 million from operating activities and RMB 3.765 million from investing activities, offset by a net cash inflow of RMB 7.583 million from financing activities, with cash and cash equivalents increasing to RMB 19.862 million at period-end Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Cash and Cash Equivalents at Period-End (RMB) | 19,862,374 | 27,318,038 | [Notes to the Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the unaudited condensed consolidated financial statements, covering general information, basis of preparation, accounting policies, segment information, and specific financial line items [1 General Information](index=9&type=section&id=1%20General%20Information) Zhejiang Chang'an Renheng Technology Co., Ltd. and its subsidiaries specialize in bentonite fine chemicals for various industries, established in China in 2000 and listed on the GEM in 2015 - The Group's core business involves the development, production, and sale of bentonite fine chemicals, with products applied in paper-making, metallurgy, and other fields[10](index=10&type=chunk) - The company was established in China on December 4, 2000, and listed on the GEM of the Stock Exchange on January 16, 2015[10](index=10&type=chunk)[12](index=12&type=chunk) [2 Basis of Preparation](index=10&type=section&id=2%20Basis%20of%20Preparation) The interim financial information is prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and GEM Listing Rules disclosure requirements, to be read in conjunction with annual financial statements - The interim financial information is prepared in accordance with International Accounting Standard 34 and the GEM Listing Rules[14](index=14&type=chunk) [3 Accounting Policies](index=10&type=section&id=3%20Accounting%20Policies) The accounting policies adopted in this reporting period are consistent with the 2024 annual financial statements, with no significant impact expected from newly revised International Financial Reporting Standards - Accounting policies are consistent with the 2024 annual financial statements, and new revised standards are not expected to have a significant impact[15](index=15&type=chunk)[17](index=17&type=chunk) [4 Segment Information](index=11&type=section&id=4%20Segment%20Information) The Group's entire business activity is focused on the production and sale of bentonite products, which management considers a single operating segment, thus no segment information is presented - The Group operates in a single operating segment, which is the production and sale of bentonite products[18](index=18&type=chunk) [5 Revenue](index=11&type=section&id=5%20Revenue) For the six months ended June 30, 2025, total revenue increased by 7.6% to RMB 98.023 million, driven by significant growth in Bidi powder and high-quality calcium-based bentonite, while paper-making and other chemical revenues declined Revenue by Product Category (For the six months ended June 30) | Total (RMB '000) | 98,023 | 100.0 | 91,123 | 100.0 | 7.6% Increase | - The decrease in revenue from paper-making chemicals was primarily due to a 12.7% decrease in sales volume[45](index=45&type=chunk) - The significant increase in revenue from Bidi powder and high-quality calcium-based bentonite was mainly due to increased sales volume[47](index=47&type=chunk) [6 Other Income – Net](index=12&type=section&id=6%20Other%20Income%20%E2%80%93%20Net) For the six months ended June 30, 2025, other income – net decreased to RMB 0.545 million from RMB 1.048 million in the prior year, primarily due to a significant reduction in government grants Other Income – Net (For the six months ended June 30) | Total (RMB) | 544,721 | 1,048,497 | 48.1% Decrease | [7 Finance Costs – Net](index=12&type=section&id=7%20Finance%20Costs%20%E2%80%93%20Net) For the six months ended June 30, 2025, finance costs – net increased to RMB 3.871 million, primarily due to higher interest expenses, partially offset by foreign exchange gains Finance Costs – Net (For the six months ended June 30) | Finance Costs – Net (RMB) | (3,871,417) | (3,140,291) | 23.3% Increase | [8 Profit/Loss for the Period](index=13&type=section&id=8%20Profit%2FLoss%20for%20the%20Period) The loss for the period was primarily influenced by non-cash expenses such as depreciation and amortization, with increases in depreciation and amortization of leasehold improvements (Loss) / Profit for the Period Deductions (For the six months ended June 30) | Amortization of Leasehold Improvements (RMB) | 1,577,272 | 1,212,070 | 30.1% Increase | [9 Income Tax Expense](index=13&type=section&id=9%20Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense increased to RMB 0.312 million, with the company and certain subsidiaries benefiting from preferential tax rates as high-tech or small-profit enterprises, while US operations are taxed at 21% Income Tax Expense (For the six months ended June 30) | Income Tax Expense (RMB) | (311,549) | (232,794) | 34.7% Increase | - The Company and Yangyuan Renheng Fine Clay Co., Ltd. enjoy a preferential tax rate of **15%** as high-tech enterprises[28](index=28&type=chunk)[29](index=29&type=chunk) - Zhejiang Chang'an Renheng Chemical Co., Ltd., as a small-profit enterprise, enjoys a preferential income tax rate of **20%**[29](index=29&type=chunk) - Income tax for US operations is calculated at the prevailing rate of **21%**[29](index=29&type=chunk) [10 (Loss) / Earnings Per Share](index=15&type=section&id=10%20(Loss)%20%2F%20Earnings%20Per%20Share) For the six months ended June 30, 2025, the company reported a basic loss per share of RMB 0.078, a reversal from the prior year's earnings per share of RMB 0.073, with no potential dilutive effects on ordinary shares Basic (Loss) / Earnings Per Share (For the six months ended June 30) | Basic (Loss) / Earnings Per Share (RMB) | (0.078) | 0.073 | - For the six months ended June 30, 2025 and 2024, diluted (loss) / earnings per share were the same as basic (loss) / earnings per share, with no potential dilutive effects[31](index=31&type=chunk) [11 Dividends](index=15&type=section&id=11%20Dividends) The Board resolved not to declare any interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board resolved not to declare an interim dividend for the first half of 2025[32](index=32&type=chunk) [12 Property, Plant and Equipment](index=15&type=section&id=12%20Property%2C%20Plant%20and%20Equipment) For the six months ended June 30, 2025, the Group acquired property, plant and equipment of approximately RMB 10.657 million, a decrease compared to the same period last year Acquisition of Property, Plant and Equipment (For the six months ended June 30) | Acquisition Amount (RMB) | 10,656,702 | 14,035,835 | 24.1% Decrease | [13 Trade and Other Receivables, Prepayments and Other Current Assets](index=16&type=section&id=13%20Trade%20and%20Other%20Receivables%2C%20Prepayments%20and%20Other%20Current%20Assets) As of June 30, 2025, the net amount of trade and other receivables, prepayments, and other current assets was RMB 84.351 million, largely consistent with the end of 2024, with a slight decrease in net trade receivables and an increase in prepayments, and a typical credit period of 90 to 180 days Trade and Other Receivables, Prepayments and Other Current Assets (As of June 30) | Total Net Amount (RMB) | 84,351,417 | 84,016,939 | 0.4% Increase | - The credit period for trade receivables is generally **90 to 180 days**, and impairment provisions have been made[38](index=38&type=chunk) [14 Trade and Other Payables](index=18&type=section&id=14%20Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables amounted to RMB 38.274 million, a slight decrease from the end of 2024, with an increase in trade payables and a decrease in salaries and welfare payable to employees Trade and Other Payables (As of June 30) | Total (RMB) | 38,273,516 | 39,221,460 | 2.4% Decrease | - Ageing analysis of trade payables shows that amounts due within six months account for the highest proportion[40](index=40&type=chunk) [Management Discussion and Analysis](index=19&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an in-depth review of the Group's market and industry, business operations, financial performance, liquidity, capital structure, and future development strategies [Market and Industry Review](index=19&type=section&id=Market%20and%20Industry%20Review) The Group specializes in bentonite fine chemicals for diverse applications, operating within a growing Chinese non-metallic mineral market supported by policies promoting high-value mineral functional materials and a modernizing paper-making industry - The Group's core business is bentonite fine chemicals, with products widely used in paints and coatings, paper-making, water treatment, oilfields, and other applications[41](index=41&type=chunk) - China's demand for non-metallic mineral products is in a growth opportunity period, with policies encouraging the development of mineral functional materials for emerging industries such as national defense, new energy, and environmental protection[41](index=41&type=chunk) - The bentonite industry is evolving towards high quality, high efficiency, and high utilization through technological R&D and innovation, transforming from "resource advantage" to "technological advantage" and "economic advantage"[42](index=42&type=chunk) [Business Review](index=20&type=section&id=Business%20Review) In the first half of 2025, the Group focused on promoting bentonite products for paints, oilfields, and putty mortar, securing supply contracts with major oil companies, while its US subsidiary successfully passed its mining permit review - In the first half of 2025, the Group focused on promoting bentonite for paints and coatings, bentonite for oilfields, putty mortar, and other products[44](index=44&type=chunk) - Bentonite products for oilfields have secured supply contracts with companies such as Sinopec and PetroChina[44](index=44&type=chunk) - The US subsidiary operated normally and successfully passed its mining permit review[44](index=44&type=chunk) - The Group's R&D expenses for the first half of the year were approximately **RMB 6.265 million**[44](index=44&type=chunk) [Financial Review](index=21&type=section&id=Financial%20Review) This section provides a detailed review of various financial indicators during the reporting period, including revenue, cost of sales, gross profit, various expenses, and the final profit or loss, along with an analysis of the main reasons for these changes [Revenue](index=21&type=section&id=Revenue) Total revenue increased by 7.6% during the reporting period, with significant growth in Bidi powder and high-quality calcium-based bentonite, while paper-making chemicals and other chemicals experienced declines Revenue Changes by Product Category (For the six months ended June 30) | Other Chemicals (RMB '000) | 1,685 | 2,610 | -925 | -35.4% | - | [Cost of Sales](index=23&type=section&id=Cost%20of%20Sales) Cost of sales increased by 14.0% year-on-year to RMB 61.516 million, primarily due to higher average purchase prices and consumption of CPAM, along with increases in manufacturing overheads and direct labor costs Cost of Sales Composition and Changes (For the six months ended June 30) | Total (RMB '000) | 61,516 | 100.0 | 53,939 | 100.0 | +7,577 | +14.0% | - The increase in raw material costs was primarily due to higher average purchase prices and consumption of CPAM (a key raw material for bentonite products)[49](index=49&type=chunk) [Gross Profit and Gross Margin](index=24&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Gross profit decreased by 1.8% to RMB 36.507 million, with gross margin falling from 40.8% to 37.2%, mainly due to changes in product mix and increased cost of sales from higher raw material and energy prices Gross Profit and Gross Margin Changes (For the six months ended June 30) | Gross Margin | 37.2% | 40.8% | -3.6 percentage points | - | - The decrease in gross margin was mainly due to changes in the sales product mix and higher average prices of raw materials and energy[53](index=53&type=chunk) [Distribution Costs](index=24&type=section&id=Distribution%20Costs) Distribution costs increased by 31.5% year-on-year to RMB 17.011 million, primarily driven by higher transportation expenses Distribution Costs Changes (For the six months ended June 30) | Distribution Costs (RMB '000) | 17,011 | 12,938 | +4,073 | +31.5% | - The increase in distribution costs was primarily due to higher transportation expenses[54](index=54&type=chunk) [Administrative Expenses](index=24&type=section&id=Administrative%20Expenses) Administrative expenses increased by 14.5% year-on-year to RMB 12.654 million, mainly due to higher staff costs and professional fees Administrative Expenses Changes (For the six months ended June 30) | Administrative Expenses (RMB '000) | 12,654 | 11,048 | +1,606 | +14.5% | - The increase in administrative expenses was primarily due to higher staff costs and professional fees[55](index=55&type=chunk) [Research and Development Expenses](index=25&type=section&id=Research%20and%20Development%20Expenses) Research and development expenses decreased by 22.3% year-on-year to RMB 6.265 million, primarily due to reduced work on environmental R&D projects with Jilin Petrochemical Design Institute Research and Development Expenses Changes (For the six months ended June 30) | Research and Development Expenses (RMB '000) | 6,265 | 8,068 | -1,803 | -22.3% | - The decrease in R&D expenses was primarily due to reduced work on environmental R&D projects with Jilin Petrochemical Design Institute[56](index=56&type=chunk) [Other Income – Net](index=25&type=section&id=Other%20Income%20%E2%80%93%20Net) Other income – net decreased by 48.0% year-on-year to RMB 0.545 million, primarily due to a significant reduction in government grants Other Income – Net Changes (For the six months ended June 30) | Other Income – Net (RMB '000) | 545 | 1,048 | -503 | -48.0% | - The decrease in other income – net was primarily due to government grants falling from **RMB 1.191 million** to **RMB 0.347 million**[57](index=57&type=chunk) [Finance Costs – Net](index=25&type=section&id=Finance%20Costs%20%E2%80%93%20Net) Finance costs – net increased by 23.3% year-on-year to RMB 3.871 million, primarily due to an increase in average bank borrowings Finance Costs – Net Changes (For the six months ended June 30) | Finance Costs – Net (RMB '000) | 3,871 | 3,140 | +731 | +23.3% | - The increase in finance costs – net was primarily due to an increase in average bank borrowings[58](index=58&type=chunk) [Income Tax Expense](index=25&type=section&id=Income%20Tax%20Expense) Income tax expense increased by 34.7% year-on-year to RMB 0.312 million Income Tax Expense Changes (For the six months ended June 30) | Income Tax Expense (RMB '000) | 312 | 233 | +79 | +34.7% | [(Loss) / Profit for the Period Attributable to Owners of the Company](index=25&type=section&id=(Loss)%20%2F%20Profit%20for%20the%20Period%20Attributable%20to%20Owners%20of%20the%20Company) Due to the combined effect of various factors, the (loss) / profit for the period attributable to owners of the Company turned from a profit of RMB 2.805 million in the same period last year to a loss of RMB 3.005 million (Loss) / Profit for the Period Attributable to Owners of the Company (For the six months ended June 30) | (Loss) / Profit for the Period Attributable to Owners of the Company (RMB '000) | (3,005) | 2,805 | Turned from Profit to Loss | [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) The Group primarily relies on cash from operations and bank borrowings for working capital, with RMB 19.862 million in cash and cash equivalents as of June 30, 2025, and sufficient resources for the next twelve months - The Group primarily meets its working capital requirements through cash generated from operations and long-term and short-term bank borrowings[61](index=61&type=chunk) - The weighted average effective annual interest rates for bank borrowings and other borrowings were **4.29%** and **4.22%** respectively[61](index=61&type=chunk) Cash and Cash Equivalents (As of June 30) | Cash and Cash Equivalents at Period-End (RMB) | 19,862,000 | 27,318,038 | - During the reporting period, cash and cash equivalents increased by approximately **RMB 3.531 million**, primarily contributed by net cash inflow from financing activities of **RMB 7.583 million**[62](index=62&type=chunk) [Capital Structure](index=26&type=section&id=Capital%20Structure) As of June 30, 2025, the Group's total borrowings were approximately RMB 184.6 million, an increase from the end of 2024, with smooth renewal of bank loans during the reporting period Total Borrowings (As of June 30) | Total Borrowings (RMB) | 184,604,000 | 172,958,000 | 6.7% Increase | [Gearing Ratio](index=27&type=section&id=Gearing%20Ratio) As of June 30, 2025, the Group's gearing ratio increased to 142.4% from 132.0% at the end of 2024, primarily due to a decrease in total equity Gearing Ratio (As of June 30) | Gearing Ratio | 142.4% | 132.0% | 10.4 percentage points increase | - The increase in gearing ratio was primarily due to a decrease in total equity[64](index=64&type=chunk) [Pledge of Assets](index=27&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group's assets pledged to banks amounted to approximately RMB 13.477 million, a decrease from the end of 2024 Total Pledged Assets (As of June 30) | Total Pledged Assets (RMB) | 13,477,000 | 15,463,000 | 12.8% Decrease | [Capital Expenditure](index=27&type=section&id=Capital%20Expenditure) During the reporting period, the Group's capital expenditure was approximately RMB 10.657 million, primarily for the acquisition of plant and equipment and construction in progress, a decrease compared to the same period last year Capital Expenditure (For the six months ended June 30) | Capital Expenditure (RMB) | 10,657,000 | 14,036,000 | 24.1% Decrease | [Exchange Rate Risk](index=27&type=section&id=Exchange%20Rate%20Risk) The Group's primary business is in China, with transactions mainly in RMB and a few in HKD, posing a risk of changes in China's exchange rate policy, though the Group considers the fluctuation risk among HKD, USD, and RMB to be insignificant without hedging - The Group's primary business is in China, with transactions denominated in RMB and a few amounts in HKD[67](index=67&type=chunk) - RMB is not freely convertible, posing a risk of changes in the Chinese government's exchange rate policy[67](index=67&type=chunk) - The Group has not entered into hedging transactions and considers the exchange rate fluctuation risk to be insignificant[67](index=67&type=chunk) [Contingent Liabilities, Legal and Potential Proceedings](index=27&type=section&id=Contingent%20Liabilities%2C%20Legal%20and%20Potential%20Proceedings) As of June 30, 2025, the Group had no significant contingent liabilities, legal proceedings, or potential proceedings - The Group has no significant contingent liabilities, legal proceedings, or potential proceedings[68](index=68&type=chunk) [Material Acquisitions and Disposals](index=28&type=section&id=Material%20Acquisitions%20and%20Disposals) For the six months ended June 30, 2025, the Group did not undertake any material acquisitions or disposals - No material acquisitions or disposals occurred during the reporting period[69](index=69&type=chunk) [Going Concern](index=28&type=section&id=Going%20Concern) Based on its current financial position and available financing, the Group has sufficient financial resources to continue as a going concern for the foreseeable future - The Group possesses sufficient financial resources to support its continued operations[70](index=70&type=chunk) [Future Developments](index=28&type=section&id=Future%20Developments) The Group plans to develop three strategic new bentonite product series focusing on high-value, green applications, while expanding into overseas markets like North America, Europe, and Southeast Asia, driven by innovation to create shareholder value - Strategic new product development focuses on three series: organic bentonite, water-based bentonite, and inorganic gels[71](index=71&type=chunk) - Emphasis is placed on green and environmentally friendly product R&D, developing bentonite products for deep, ultra-deep, and offshore drilling[71](index=71&type=chunk) - Key focus on developing overseas customer markets in North America, Europe, Southeast Asia, and expanding foreign trade business[71](index=71&type=chunk) [Other Information](index=29&type=section&id=Other%20Information) This section covers human resources, directors' and substantial shareholders' interests, related party transactions, corporate governance, and post-reporting period events [Human Resources and Training](index=29&type=section&id=Human%20Resources%20and%20Training) As of June 30, 2025, the Group employed 232 staff with total costs of approximately RMB 17.637 million, adhering to a "people-oriented" management philosophy to enhance efficiency through rigorous selection, incentives, and regular evaluations Number of Employees and Staff Costs (As of June 30) | Total Staff Costs (RMB '000) | 17,637 | 16,959 | - The Group adopts a "people-oriented" management philosophy, enhancing employee efficiency through rigorous selection, incentive mechanisms, and regular evaluations[72](index=72&type=chunk) [Directors', Supervisors' and Chief Executive's Interests in Shares, Debentures and Underlying Shares of the Company or any Associated Corporation](index=30&type=section&id=Directors'%2C%20Supervisors'%20and%20Chief%20Executive's%20Interests%20in%20Shares%2C%20Debentures%20and%20Underlying%20Shares%20of%20the%20Company%20or%20any%20Associated%20Corporation) As of June 30, 2025, Mr. Zhang Youlian held 50.05% of the company's shares, Ms. Zhang Jinhua held 1.04%, and Supervisor Mr. Xu Qinshi held 0.26% through his spouse, with no other disclosable interests Directors'/Supervisors' Long Positions in Ordinary Shares of the Company (As of June 30) | Mr. Xu Qinshi | Spouse's Interest | 100,000 | 0.26% | [Substantial Shareholders' and Other Persons' Interests in Shares and Underlying Shares](index=31&type=section&id=Substantial%20Shareholders'%20and%20Other%20Persons'%20Interests%20in%20Shares%20and%20Underlying%20Shares) As of June 30, 2025, Ms. Yu Hua held 9.31% of the Company's shares, qualifying her as a substantial shareholder, in addition to the interests of Directors, Supervisors, and Chief Executives Substantial Shareholders' Long Positions in Shares of the Company (As of June 30) | Ms. Yu Hua | Beneficial Owner | 3,576,000 | 9.31% | [Directors' and Supervisors' Rights to Acquire Shares or Debentures](index=32&type=section&id=Directors'%20and%20Supervisors'%20Rights%20to%20Acquire%20Shares%20or%20Debentures) During the reporting period, no Director or Supervisor, or their spouse or minor children, was granted or exercised any right to acquire shares or debentures of the Company - During the reporting period, no Director or Supervisor or their associates were granted or exercised any right to acquire shares or debentures of the Company[76](index=76&type=chunk) [Connected Transactions](index=32&type=section&id=Connected%20Transactions) During the reporting period, the Group did not enter into any connected transactions or continuing connected transactions requiring disclosure under the GEM Listing Rules - No disclosable connected transactions occurred during the reporting period[77](index=77&type=chunk) [Directors', Supervisors' and Controlling Shareholders' Interests in Competing Businesses and Conflicts of Interest](index=32&type=section&id=Directors'%2C%20Supervisors'%20and%20Controlling%20Shareholders'%20Interests%20in%20Competing%20Businesses%20and%20Conflicts%20of%20Interest) During the reporting period, no Director, Supervisor, or controlling shareholder and their associates engaged in any business that competes or is likely to compete with the Group's business, or had any conflicts of interest - No Directors, Supervisors, controlling shareholders, or their associates had competing businesses or conflicts of interest[78](index=78&type=chunk) [Public Float](index=32&type=section&id=Public%20Float) During the reporting period, at least 25% of the Company's issued share capital was held by public shareholders, in compliance with regulations - At least **25%** of the Company's issued share capital is held by public shareholders[79](index=79&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=32&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During the reporting period, neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities[80](index=80&type=chunk) [Capital Commitments](index=32&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group's capital commitments amounted to approximately RMB 1.254 million, a decrease from the end of 2024 Capital Commitments (As of June 30) | Capital Commitments (RMB) | 1,254,000 | 1,672,000 | 25.0% Decrease | [Dividends](index=33&type=section&id=Dividends) The Board resolved not to declare any interim dividend for the six months ended June 30, 2025 - The Board resolved not to declare an interim dividend for the first half of 2025[82](index=82&type=chunk) [Corporate Governance Practices](index=33&type=section&id=Corporate%20Governance%20Practices) The Company strives for corporate governance compliance but deviates on the combined roles of Chairman and Chief Executive and the absence of directors' and officers' liability insurance, with the Board believing strong leadership and independent directors balance power, and liability insurance under consideration - The Company complies with the Corporate Governance Code, with two deviations: combined roles of Chairman and Chief Executive (Code Provision C.2.1) and no directors' and officers' liability insurance (Code Provision C.1.8)[83](index=83&type=chunk)[84](index=84&type=chunk) - The Board believes that combining the roles of Chairman and Chief Executive provides strong and consistent leadership, and the presence of independent non-executive directors balances power[83](index=83&type=chunk) - Proposals from various underwriters for directors' and officers' liability insurance are under consideration[84](index=84&type=chunk) [Standard Code for Securities Transactions](index=34&type=section&id=Standard%20Code%20for%20Securities%20Transactions) The Company has adopted a standard code for securities transactions no less exacting than required by the GEM Listing Rules, with all Directors confirming full compliance during the reporting period - The Company has adopted a standard code for securities transactions, and all Directors have confirmed full compliance[85](index=85&type=chunk) [Nomination Committee](index=34&type=section&id=Nomination%20Committee) The Company's Nomination Committee, established in 2014, revised its terms of reference on June 30, 2025, and comprises Mr. Fan Fang, Mr. Zhang Lei, and Mr. Tang Jingyan, with Mr. Tang serving as Chairman - The Nomination Committee was established in 2014 and revised its terms of reference on June 30, 2025[86](index=86&type=chunk) - The committee members include Mr. Fan Fang, Mr. Zhang Lei, and Mr. Tang Jingyan, with Mr. Tang serving as Chairman[86](index=86&type=chunk) [Audit Committee](index=34&type=section&id=Audit%20Committee) The Company's Audit Committee, established in 2014, comprises Mr. Zhang Lei (Chairman), Mr. Chen Jianping, and Mr. Tang Jingyan, all independent non-executive directors, and has reviewed the interim report and financial statements, confirming compliance with accounting standards and GEM Listing Rules - The Audit Committee was established in 2014, comprising Mr. Zhang Lei (Chairman), Mr. Chen Jianping, and Mr. Tang Jingyan[87](index=87&type=chunk) - The committee has reviewed this interim report and financial statements, confirming compliance with accounting standards and GEM Listing Rules requirements[88](index=88&type=chunk) [Events After the Reporting Period](index=35&type=section&id=Events%20After%20the%20Reporting%20Period) As of the date of this report, there were no significant events after the reporting period - No significant events occurred after the reporting period[89](index=89&type=chunk) [Disclosure of Information](index=35&type=section&id=Disclosure%20of%20Information) The Company will dispatch the interim report to shareholders and publish it on the Company's website and the Stock Exchange's website at the appropriate time - The interim report will be dispatched to shareholders and published on the Company's website www.renheng.com and the Stock Exchange's website www.hkexnews.hk[90](index=90&type=chunk)

[Management Discussion and Analysis](index=3&type=section&id=Management%20Discussion%20and%20Analysis) [Results, Business Review and Prospects](index=3&type=section&id=RESULTS,%20BUSINESS%20REVIEW%20AND%20PROSPECTS) The Group achieved significant revenue and gross profit growth in H1 2025, successfully turning from loss to profit, primarily driven by strong medical products business performance and fair value gains from securities investments. Despite a decline in money lending business revenue, the Group's overall profitability significantly improved [Results](index=3&type=section&id=Results) The Group's H1 2025 revenue increased by 23.2% to HK$27.1 million, gross profit by 23.5% to HK$8.4 million, with gross margin slightly up to 30.9%. Net other losses of HK$22.9 million in the prior period turned into a gain of HK$3.4 million, leading to a profit attributable to owners of HK$1.1 million, reversing a HK$25.4 million loss - Distribution costs increased by **HK$0.3 million** to **HK$2.5 million**, consistent with the growth in medical products business revenue[14](index=14&type=chunk)[17](index=17&type=chunk) - Administrative expenses increased by **HK$0.5 million** to **HK$6.4 million**, a year-on-year increase of **8.5%**[14](index=14&type=chunk)[17](index=17&type=chunk) - Finance costs increased to **HK$1.8 million**, primarily due to interest on bonds payable[15](index=15&type=chunk)[17](index=17&type=chunk) [Business Review](index=4&type=section&id=Business%20Review) The Group's main businesses include medical products, plastic products, money lending, and securities investment. In H1 2025, medical products business revenue and segment profit significantly grew, becoming the primary revenue source. Money lending business revenue and segment loss both worsened. Securities investment business swung to a significant profit, but the Group plans to diversify its portfolio to mitigate risks - The Group's principal businesses are the manufacturing and sale of medical equipment products, manufacturing and sale of plastic mold products, money lending, and securities investment[7](index=7&type=chunk)[11](index=11&type=chunk) [Medical Products Business](index=4&type=section&id=Medical%20Products%20Business) The medical products business performed strongly in H1 2025, with revenue up 35.6% year-on-year to HK$22.1 million, accounting for 81.3% of total group revenue, and segment profit doubling to HK$3.3 million. Growth was mainly due to strategic expansion of service coverage and product portfolio diversification. The Group will continue to streamline processes, control costs, and actively explore business opportunities Medical Products Business Performance | Metric | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 22,100 | 16,300 | +35.6% | | Percentage of total group revenue | 81.3% | - | - | | Segment Profit | 3,300 | 1,700 | +94.1% | - Sales growth was primarily attributable to the Group's initial implementation of strategic plans to expand service coverage and diversify its product portfolio[16](index=16&type=chunk)[18](index=18&type=chunk) - The Group will continue to implement strategies to streamline and outsource business processes, strictly control costs, ensure efficient resource utilization, and actively explore potential business opportunities to expand its customer base and product service portfolio[19](index=19&type=chunk)[21](index=21&type=chunk) [Money Lending Business](index=5&type=section&id=Money%20Lending%20Business) The money lending business recorded loan interest income of HK$5.1 million in H1 2025, a 10.5% year-on-year decrease, accounting for 18.7% of total group revenue. Segment loss expanded to HK$1.3 million. Outstanding principal and interest on loans receivable increased to HK$152.7 million. The Group will continue to adopt prudent credit control procedures to balance business growth and risk management Money Lending Business Performance | Metric | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Loan interest income | 5,100 | 5,700 | -10.5% | | Percentage of total group revenue | 18.7% | - | - | | Segment Loss | 1,300 | 700 | +85.7% | | Outstanding principal and interest on loans receivable (period end) | 152,700 | 149,600 (31 December 2024) | +2.1% | - The Group will continue to develop this business by adopting prudent credit control procedures and maintaining a balanced strategy between business growth and risk management[20](index=20&type=chunk)[22](index=22&type=chunk) [Securities Investment](index=6&type=section&id=Securities%20Investment) The securities investment business swung to a significant profit in H1 2025, recording net unrealized and realized gains of HK$3.4 million, compared to a loss of HK$22.9 million in the prior period. Segment profit also turned to HK$3.4 million. As of June 30, 2025, the Group held 27 Hong Kong-listed equity securities with a fair value of HK$75.6 million. Given market volatility, the Group plans to diversify its investment portfolio to mitigate risks and will adopt a prudent investment approach Securities Investment Business Performance | Metric | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Net unrealized and realized gains | 3,400 (Gain) | (22,900) (Loss) | Swung to profit | | Segment Profit/(Loss) | 3,400 (Profit) | (22,900) (Loss) | Swung to profit | | Fair value of Hong Kong-listed equity securities held (period end) | 75,600 | - | - | | Number of Hong Kong-listed equity securities held (period end) | 27 | - | - | - The Group intends to diversify its investment portfolio to reduce concentration and investment risks, and will closely monitor the performance of this business[25](index=25&type=chunk)[26](index=26&type=chunk) - The Group will continue to adopt a prudent investment approach, aiming to enhance capital utilization and generate additional investment returns from idle funds[25](index=25&type=chunk)[26](index=26&type=chunk) Details of Principal Held-for-Trading Investments (as at June 30, 2025) | Company Name/Stock Code | Equity Percentage | Realized and Unrealized (Losses)/Gains (HK$ thousand) | Fair Value (HK$ thousand) | Percentage of Total Group Assets | | :--- | :--- | :--- | :--- | :--- | | China Investment and Finance Group Limited (1226) | 1.7% | 3,034 | 10,338 | 5.7% | | Others | - | 411 | 65,276 | 36.1% | | **Total** | - | **3,445** | **75,614** | **41.8%** | [Prospects](index=9&type=section&id=Prospects) Facing economic recovery and financial market volatility in 2025, the Group will maintain a diversified business portfolio, continuously formulate, evaluate, and revise existing business strategies to promote development and stabilize adverse impacts. The Group will focus on effective allocation of funds and resources, actively reallocating assets, capital, and personnel, and continuously conducting performance evaluations. Concurrently, the Group will prioritize maintaining liquidity, controlling costs, and enhancing operational efficiency, while actively exploring new profitable businesses and investment opportunities to maximize shareholder value and returns - The Group will adhere to a diversified business portfolio, focusing on formulating, evaluating, and revising existing business strategies to promote business development and stabilize any adverse impacts[33](index=33&type=chunk)[35](index=35&type=chunk) - The Group will be committed to effective and adequate allocation of funds and resources, and will actively reallocate its assets, capital, and human resources in response to market changes, industry conditions, and operating performance[33](index=33&type=chunk)[35](index=35&type=chunk) - The Group will focus on maintaining liquidity through effective working capital management and cost control, while maintaining a lean organizational structure to enhance operational efficiency[33](index=33&type=chunk)[35](index=35&type=chunk) - The Group will continue to explore and leverage every potential profitable business and investment opportunity, as well as new growth potential, to generate and maximize shareholder value and returns and maintain sustainable growth[34](index=34&type=chunk)[35](index=35&type=chunk) Key Financial Performance of the Group in H1 2025 | Metric | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 27,100 | 22,000 | +23.2% | | Gross Profit | 8,400 | 6,800 | +23.5% | | Gross Margin | 30.9% | 30.8% | +0.1pp | | Net Other Gains/(Losses) | 3,400 (Gain) | (22,900) (Loss) | Swung to profit | | Profit/(Loss) attributable to owners of the Company | 1,100 (Profit) | (25,400) (Loss) | Swung to profit | [Financial Review](index=10&type=section&id=FINANCIAL%20REVIEW) As of June 30, 2025, the Group's consolidated net assets increased to HK$61.3 million, cash and bank balances increased, but the current ratio slightly decreased. The Group had no borrowings from financial institutions, but bonds payable increased, with the gearing ratio maintained at 43.8%. The Group had no significant contingent liabilities or asset pledges, and limited foreign currency exposure [Capital structure](index=10&type=section&id=Capital%20structure) As of June 30, 2025, the Group's consolidated net assets were approximately HK$61.3 million, an increase of HK$1.2 million from the end of 2024. The number of ordinary shares issued remained unchanged at 967,551,792 shares Capital Structure Overview | Metric | 30 June 2025 (HK$ thousand) | 31 December 2024 (HK$ thousand) | Change (HK$ thousand) | | :--- | :--- | :--- | :--- | | Consolidated Net Assets | 61,300 | 60,100 | +1,200 | | Number of ordinary shares issued | 967,551,792 shares | 967,551,792 shares | No change | [Debt structure](index=10&type=section&id=Debt%20structure) As of June 30, 2025, the Group had no borrowings from financial institutions. Cash and bank balances increased to HK$6.2 million. Total bonds payable increased to HK$33.0 million, including several unlisted bonds with different maturity dates. The gearing ratio remained at 43.8% - The Group's total borrowings from financial institutions were **zero**[39](index=39&type=chunk)[43](index=43&type=chunk) Debt Structure Overview | Metric | 30 June 2025 (HK$ thousand) | 31 December 2024 (HK$ thousand) | Change (HK$ thousand) | | :--- | :--- | :--- | :--- | | Total cash and bank balances | 6,200 | 4,600 | +1,600 | | Bonds payable | 33,000 | 30,000 | +3,000 | | Gearing ratio | 43.8% | 43.8% | No change | - Bonds payable include unlisted bonds maturing in July 2025, July 2026, March 2030, and May 2030[40](index=40&type=chunk)[43](index=43&type=chunk) [Working capital and liquidity](index=11&type=section&id=Working%20capital%20and%20liquidity) As of June 30, 2025, the Group's current ratio was 2.1, a slight decrease from 2.3 at the end of 2024 Current Ratio | Metric | 30 June 2025 | 31 December 2024 | | :--- | :--- | :--- | | Current ratio | 2.1 | 2.3 | [Contingent liabilities and charges](index=11&type=section&id=Contingent%20liabilities%20and%20charges) As of June 30, 2025, and December 31, 2024, the Group had no assets pledged for bank facilities or other borrowings, nor any significant contingent liabilities - The Group had no assets pledged as security for bank facilities and other borrowings[45](index=45&type=chunk)[50](index=50&type=chunk) - The Group had no significant contingent liabilities[45](index=45&type=chunk)[50](index=50&type=chunk) [Foreign currency exposure](index=11&type=section&id=Foreign%20currency%20exposure) The Group's monetary assets, liabilities, and transactions are primarily denominated in USD, RMB, and HKD. Due to the HKD's peg to the USD and the relatively stable RMB to HKD exchange rate, the Group's potential foreign currency risk is relatively limited - The Group's monetary assets, liabilities, and transactions are primarily denominated in USD, RMB, and HKD[46](index=46&type=chunk)[51](index=51&type=chunk) - As the HKD is pegged to the USD and the exchange rate of RMB against HKD remained relatively stable during the period, the Group's potential foreign currency risk is relatively limited[46](index=46&type=chunk)[51](index=51&type=chunk) [Employees and Remuneration Policies](index=11&type=section&id=EMPLOYEES%20AND%20REMUNERATION%20POLICIES) As of June 30, 2025, the Group's number of employees remained at 30. Employee remuneration policy is based on performance and experience, referencing industry practices, including salaries, insurance, mandatory provident fund, share option schemes, medical coverage, housing allowances, and discretionary bonuses Number of Employees | Metric | 30 June 2025 | 31 December 2024 | | :--- | :--- | :--- | | Number of employees | 30 | 30 | - Employee remuneration packages include salaries, insurance, mandatory provident fund, share option schemes, medical coverage, housing allowances, and discretionary bonuses[47](index=47&type=chunk)[52](index=52&type=chunk) [Interim Dividend](index=11&type=section&id=INTERIM%20DIVIDEND) The Company's Board of Directors does not recommend paying an interim dividend for the six months ended June 30, 2025, consistent with the prior period - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (June 30, 2024: nil)[48](index=48&type=chunk)[53](index=53&type=chunk) [Corporate Governance and Other Information](index=12&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company and its Associated Corporations](index=12&type=section&id=DIRECTORS'%20AND%20CHIEF%20EXECUTIVE'S%20INTERESTS%20AND%20SHORT%20POSITIONS%20IN%20SHARES,%20UNDERLYING%20SHARES%20AND%20DEBENTURES%20OF%20THE%20COMPANY%20AND%20ITS%20ASSOCIATED%20CORPORATIONS) As of June 30, 2025, to the knowledge of the Directors and Chief Executive, no Directors or Chief Executive had interests or short positions in the shares, underlying shares, and/or debentures of the Company or any of its associated corporations that were required to be notified to the Company and the Stock Exchange under the SFO or the Listing Rules Model Code - No Directors or Chief Executive had interests or short positions in the shares, underlying shares, and/or debentures of the Company or any of its associated corporations that were required to be notified[56](index=56&type=chunk)[57](index=57&type=chunk) [Share Options](index=13&type=section&id=SHARE%20OPTIONS) The Company's share option scheme adopted in 2015 expired on June 29, 2025. For the six months ended June 30, 2025, share options granted to Directors and certain employees in 2020 lapsed, significantly reducing the number of shares available for issue. Currently, 48,360,000 shares remain available for issue under the share option scheme, representing 5.0% of issued shares - The Company's share option scheme adopted on June 30, 2015, expired at the close of business on June 29, 2025[70](index=70&type=chunk)[71](index=71&type=chunk) Overview of Share Option Movements (for the six months ended June 30, 2025) | Category | Outstanding as at 1 January 2025 | Lapsed/Forfeited during the period | Outstanding as at 30 June 2025 | | :--- | :--- | :--- | :--- | | Directors (Zhang Hengxin, Jia Minghui, Ouyang Mingxian) | 11,172,000 | (11,172,000) | 0 | | Employees (granted in 2020) | 26,068,000 | (26,068,000) | 0 | | Employees (granted in 2022) | 48,360,000 | 0 | 48,360,000 | | **Total** | **85,600,000** | **(37,240,000)** | **48,360,000** | Number of Shares Available for Issue under Share Option Scheme | Metric | 30 June 2025 | 31 December 2024 | | :--- | :--- | :--- | | Number of shares available for issue | 48,360,000 shares | 182,355,179 shares | | Percentage of issued shares | 5.0% | 18.8% | [Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares and Underlying Shares of the Company](index=17&type=section&id=SUBSTANTIAL%20SHAREHOLDERS'%20AND%20OTHER%20PERSONS'%20INTERESTS%20AND%20SHORT%20POSITIONS%20IN%20SHARES%20AND%20UNDERLYING%20SHARES%20OF%20THE%20COMPANY) As of June 30, 2025, to the knowledge of the Directors and Chief Executive, no person or company (other than Directors or Chief Executive) had interests or short positions in the shares or underlying shares of the Company that were required to be entered in the register, or directly/indirectly held 5% or more interests - No person or company (other than the Directors or Chief Executive of the Company) had interests or short positions in the shares or underlying shares of the Company that were required to be entered in the register, or directly or indirectly held 5% or more interests[77](index=77&type=chunk)[80](index=80&type=chunk) [Corporate Governance](index=17&type=section&id=CORPORATE%20GOVERNANCE) For the six months ended June 30, 2025, the Company has consistently complied with all code provisions of the Corporate Governance Code set out in Appendix 14 to the Listing Rules - The Company has complied with all code provisions of the Corporate Governance Code for the six months ended June 30, 2025[78](index=78&type=chunk)[81](index=81&type=chunk) [Model Code for Securities Transactions by Directors](index=17&type=section&id=MODEL%20CODE%20FOR%20SECURITIES%20TRANSACTIONS%20BY%20DIRECTORS) The Company has adopted the Model Code for Securities Transactions by Directors, as set out in Appendix 10 to the Listing Rules, as its code of conduct for directors' securities transactions. Following specific inquiries, all Directors confirmed full compliance with the code for the six months ended June 30, 2025 - The Company has adopted the Model Code as its code of conduct for Directors' securities transactions[79](index=79&type=chunk)[82](index=82&type=chunk) - All Directors have confirmed their full compliance with the required standards set out in the Model Code for the six months ended June 30, 2025[79](index=79&type=chunk)[82](index=82&type=chunk) [Audit Committee](index=18&type=section&id=AUDIT%20COMMITTEE) The Company's Audit Committee, comprising three independent non-executive directors, has reviewed the accounting principles and practices adopted by the Group with management and discussed financial reporting matters, including the unaudited interim results for the six months ended June 30, 2025 - The Audit Committee, comprising three independent non-executive directors, has reviewed the accounting principles and practices adopted by the Group and discussed financial reporting matters, including the unaudited interim results[83](index=83&type=chunk)[84](index=84&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=18&type=section&id=PURCHASE,%20SALE%20OR%20REDEMPTION%20OF%20THE%20COMPANY'S%20LISTED%20SECURITIES) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[85](index=85&type=chunk) [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=19&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group swung to a profit of HK$1.148 million for H1 2025, compared to a loss of HK$25.429 million in the prior period. Revenue increased by 23.3% year-on-year to HK$27.144 million, and gross profit grew by 23.5% to HK$8.376 million. Basic and diluted earnings per share were HK0.12 cents, compared to a loss per share of HK2.63 cents in the prior period Summary of Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 27,144 | 22,007 | | Cost of sales and services | (18,768) | (15,225) | | Gross Profit | 8,376 | 6,782 | | Other gains or losses | 3,445 | (22,892) | | Distribution costs | (2,490) | (2,230) | | Administrative expenses | (6,388) | (5,939) | | Finance costs | (1,795) | (1,150) | | Profit/(Loss) before income tax | 1,148 | (25,429) | | Profit/(Loss) for the period | 1,148 | (25,429) | | Total comprehensive income/(loss) attributable to owners of the Company | 1,148 | (25,429) | | Basic and diluted earnings/(loss) per share | HK0.12 cent | HK(2.63) cent | [Interim Condensed Consolidated Statement of Financial Position](index=20&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total net assets were HK$61.276 million, a slight increase from the end of 2024. Total current assets increased to HK$180.795 million, primarily driven by an increase in held-for-trading investments. Total current liabilities also rose, leading to a small increase in net current assets. Bonds payable in non-current liabilities increased Summary of Interim Condensed Consolidated Statement of Financial Position | Metric | 30 June 2025 (HK$ thousand) | 31 December 2024 (HK$ thousand) | | :--- | :--- | :--- | | Inventories | 16,036 | 11,409 | | Held-for-trading investments | 75,614 | 59,373 | | Trade and other receivables | 82,919 | 83,965 | | Cash and cash equivalents | 6,226 | 4,583 | | **Total current assets** | **180,795** | **159,330** | | Trade and other payables | 86,429 | 68,302 | | **Total current liabilities** | **86,429** | **68,302** | | Net current assets | 94,366 | 91,028 | | Bonds payable (non-current) | 33,090 | 30,900 | | **Net assets** | **61,276** | **60,128** | | Share capital | 48,378 | 48,378 | | Reserves | 12,898 | 11,750 | | **Total equity** | **61,276** | **60,128** | [Interim Condensed Consolidated Statement of Changes in Equity](index=21&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, the Group's total equity increased to HK$61.276 million, primarily due to a profit of HK$1.148 million recorded during the period. The lapse of share options resulted in a decrease of HK$5.068 million in the share option reserve, with a corresponding reduction in accumulated losses Summary of Interim Condensed Consolidated Statement of Changes in Equity | Metric | Share Capital (HK$ thousand) | Share Premium (HK$ thousand) | Share Option Reserve (HK$ thousand) | Accumulated Losses (HK$ thousand) | Total (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | | As at 1 January 2025 (audited) | 48,378 | 480,639 | 14,277 | (483,166) | 60,128 | | Lapse of share options | – | – | (5,068) | 5,068 | – | | Profit and total comprehensive income for the period | – | – | – | 1,148 | 1,148 | | **As at 30 June 2025 (unaudited)** | **48,378** | **480,639** | **9,209** | **(476,950)** | **61,276** | | As at 1 January 2024 (audited) | 48,378 | 480,639 | 14,277 | (481,933) | 61,361 | | Loss and total comprehensive loss for the period | – | – | – | (25,429) | (25,429) | | **As at 30 June 2024 (unaudited)** | **48,378** | **480,639** | **14,277** | **(507,362)** | **35,932** | [Interim Condensed Consolidated Statement of Cash Flows](index=22&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, the Group's cash and cash equivalents increased by HK$1.643 million, with a period-end balance of HK$6.226 million. Net cash generated from operating activities was HK$504 thousand, net cash used in investing activities was HK$1.861 million, and net cash generated from financing activities was HK$3.000 million Summary of Interim Condensed Consolidated Statement of Cash Flows | Metric | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Net cash generated from/(used in) operating activities | 504 | (3,358) | | Net cash (used in)/generated from investing activities | (1,861) | 234 | | Net cash generated from financing activities | 3,000 | – | | Net increase/(decrease) in cash and cash equivalents | 1,643 | (3,124) | | Cash and cash equivalents at 1 January | 4,583 | 7,716 | | **Cash and cash equivalents at 30 June** | **6,226** | **4,592** | [Notes to the Interim Condensed Consolidated Financial Statements](index=23&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Statements) [1. General Information](index=23&type=section&id=1.%20GENERAL%20INFORMATION) Juntai Holdings Limited was incorporated in Bermuda in 1994 and listed on the Main Board of the Hong Kong Stock Exchange in 1996. The Group primarily engages in the manufacturing and sale of medical equipment products, manufacturing and sale of plastic mold products, money lending, and securities investment - The Company was incorporated in Bermuda on August 19, 1994, and has been listed on the Main Board of The Stock Exchange of Hong Kong Limited since November 28, 1996[92](index=92&type=chunk)[96](index=96&type=chunk) - The Group is principally engaged in (i) manufacturing and sale of medical equipment products; (ii) manufacturing and sale of plastic mold products; (iii) money lending; and (iv) securities investment[93](index=93&type=chunk)[96](index=96&type=chunk) [2. Basis of Preparation and Accounting Policies](index=23&type=section&id=2.%20BASIS%20OF%20PREPARATION%20AND%20ACCOUNTING%20POLICIES) The interim condensed consolidated financial statements are prepared in accordance with Appendix 16 of the Listing Rules and HKAS 34 'Interim Financial Reporting', and have been reviewed by the Audit Committee. Accounting policies are consistent with the annual financial statements for the year ended December 31, 2024, and new and revised HKFRSs adopted in the current period have not resulted in significant changes - The interim condensed consolidated financial statements are prepared in accordance with the applicable disclosure requirements of Appendix 16 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the Hong Kong Institute of Certified Public Accountants[94](index=94&type=chunk)[97](index=97&type=chunk) - The interim condensed consolidated financial statements are unaudited but have been reviewed by the Company's Audit Committee[94](index=94&type=chunk)[97](index=97&type=chunk) - The adoption of new and revised Hong Kong Financial Reporting Standards has not resulted in significant changes to the Group's accounting policies or the amounts reported for the current and prior accounting periods[100](index=100&type=chunk)[103](index=103&type=chunk) [3. Segment Information](index=24&type=section&id=3.%20SEGMENT%20INFORMATION) The Group has four reportable segments: medical products business, plastic products business, money lending business, and securities investment. In H1 2025, the medical products business and securities investment segments achieved profits, with securities investment's swing to profit contributing significantly; the money lending business recorded a loss. The plastic products business had no revenue. The allocation of segment assets and liabilities shows medical products, money lending, and securities investment as major asset holders - The Group has four reportable segments: medical products business, plastic products business, money lending business, and securities investment[105](index=105&type=chunk)[107](index=107&type=chunk) Revenue and Results by Reportable Segment (for the six months ended June 30, 2025) | Segment | Revenue (HK$ thousand) | Segment Profit/(Loss) (HK$ thousand) | | :--- | :--- | :--- | | Medical equipment business | 22,080 | 3,288 | | Plastic products business | – | – | | Money lending business | 5,064 | (1,296) | | Securities investment | – | 3,445 | | **Total** | **27,144** | **5,437** | Assets and Liabilities by Reportable Segment (as at June 30, 2025) | Segment | Reportable Segment Assets (HK$ thousand) | Reportable Segment Liabilities (HK$ thousand) | | :--- | :--- | :--- | | Medical equipment business | 26,727 | 63,372 | | Plastic products business | 51 | 13,348 | | Money lending business | 77,449 | 60 | | Securities investment | 75,614 | – | | **Total** | **179,841** | **76,780** | [4. Other Income and Other Gains or Losses](index=29&type=section&id=4.%20OTHER%20INCOME%20AND%20OTHER%20GAINS%20OR%20LOSSES) For the six months ended June 30, 2025, the Group recorded net other gains of HK$3.445 million, primarily from fair value changes in held-for-trading investments, successfully reversing a loss of HK$22.897 million in the prior period Details of Other Income and Other Gains or Losses | Item | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Fair value changes in held-for-trading investments – gains/(losses) | 3,445 | (22,897) | | Interest income | – | 5 | | **Total** | **3,445** | **(22,892)** | [5. Finance Costs](index=29&type=section&id=5.%20FINANCE%20COSTS) For the six months ended June 30, 2025, the Group's finance costs were HK$1.795 million, an increase from HK$1.150 million in the prior period, primarily due to interest on bonds payable Details of Finance Costs | Item | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Interest on bonds payable | 1,795 | 1,150 | [6. Profit/(Loss) Before Income Tax](index=30&type=section&id=6.%20PROFIT/(LOSS)%20BEFORE%20INCOME%20TAX) For the six months ended June 30, 2025, the Group's profit before income tax was HK$1.148 million, successfully reversing a loss of HK$25.429 million in the prior period. This was mainly due to control over expenses such as staff costs and inventory costs recognized as expenses Composition of Profit/(Loss) Before Income Tax | Item | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Staff costs (including directors' emoluments) | | | | - Salaries, wages and other benefits | 1,587 | 1,447 | | - Contributions to defined contribution retirement plans | 30 | 30 | | **Total staff costs** | **1,617** | **1,477** | | Depreciation of property, plant and equipment | – | – | | Cost of inventories recognized as an expense | 18,768 | 15,225 | [7. Income Tax Credit](index=30&type=section&id=7.%20INCOME%20TAX%20CREDIT) For the six months ended June 30, 2025, the Group recorded no income tax credit. No Hong Kong profits tax provision was made for both periods as Group entities did not generate estimated taxable profits or have sufficient tax losses carried forward to offset them - The Group did not derive any estimated taxable profits or have sufficient tax losses brought forward to offset estimated taxable profits for the periods ended June 30, 2025 and 2024, hence no Hong Kong profits tax provision was made for both periods[129](index=129&type=chunk)[130](index=130&type=chunk) [8. Interim Dividend](index=31&type=section&id=8.%20INTERIM%20DIVIDEND) During the reporting period, the Company's Board of Directors did not recommend paying an interim dividend for the six months ended June 30, 2025, consistent with the prior period - The Company's Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 and 2024[131](index=131&type=chunk)[132](index=132&type=chunk) [9. Earnings/(Loss) Per Share](index=31&type=section&id=9.%20EARNING/(LOSS)%20PER%20SHARE) For the six months ended June 30, 2025, basic earnings per share attributable to owners of the Company were HK0.12 cents, successfully reversing a loss per share of HK2.63 cents in the prior period. Diluted earnings per share were the same as basic earnings per share due to the absence of potentially dilutive ordinary shares Earnings/(Loss) Per Share Calculation Data | Metric | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Profit/(Loss) for the period for the purpose of calculating basic earnings/(loss) per share | 1,148 | (25,429) | | Weighted average number of ordinary shares in issue (thousand shares) | 967,551 | 967,551 | | **Basic earnings/(loss) per share** | **HK0.12 cent** | **HK(2.63) cent** | - As there were no ordinary shares with potential dilutive effect in issue for the six months ended June 30, 2025 and 2024, the diluted earnings/(loss) per share was the same as the basic earnings/(loss) per share[136](index=136&type=chunk)[140](index=140&type=chunk) - The outstanding share options of the Company as at June 30, 2025 and 2024 had an anti-dilutive effect and were therefore not included in the calculation of diluted earnings/(loss) per share[137](index=137&type=chunk)[140](index=140&type=chunk) [10. Movements in Property, Plant and Equipment](index=32&type=section&id=10.%20MOVEMENTS%20IN%20PROPERTY,%20PLANT%20AND%20EQUIPMENT) For the six months ended June 30, 2025, the Group incurred no depreciation expense on property, plant, and equipment, consistent with the prior period - For the six months ended June 30, 2025, the Group incurred depreciation expense on property, plant and equipment of approximately **nil** (for the six months ended June 30, 2024: nil)[138](index=138&type=chunk)[141](index=141&type=chunk) [11. Held-for-trading Investments](index=32&type=section&id=11.%20HELD-FOR-TRADING%20INVESTMENTS) Held-for-trading investments primarily refer to equity securities listed in Hong Kong, which are classified as financial assets measured at fair value through profit or loss - Held-for-trading investments represent equity securities listed in Hong Kong[139](index=139&type=chunk)[142](index=142&type=chunk) - These investments are classified as financial assets measured at fair value through profit or loss[139](index=139&type=chunk)[142](index=142&type=chunk) [12. Trade and Other Receivables](index=33&type=section&id=12.%20TRADE%20AND%20OTHER%20RECEIVABLES) As of June 30, 2025, the Group's net trade receivables were HK$4.465 million, a decrease from the end of 2024. Net loans receivable increased to HK$77.449 million, with all loan contracts maturing within 12 months and annual interest rates ranging from 6% to 12%. The Group maintains strict control over loans receivable to mitigate credit risk Details of Trade and Other Receivables | Item | 30 June 2025 (HK$ thousand) | 31 December 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade receivables from contracts with customers (net) | 4,465 | 7,575 | | Loans receivable (net) | 77,449 | 74,385 | | Deposits, prepayments and other receivables | 1,005 | 2,005 | | **Total trade and other receivables** | **82,919** | **83,965** | - The Group grants credit terms of up to **90 to 180 days** to its trade customers[147](index=147&type=chunk) - The contractual maturity dates of loans receivable are all within **12 months**, with annual interest rates ranging from **6% to 12%** (31 December 2024: 4% to 12%)[149](index=149&type=chunk)[150](index=150&type=chunk) [13. Trade and Other Payables](index=35&type=section&id=13.%20TRADE%20AND%20OTHER%20PAYABLES) As of June 30, 2025, the Group's total trade payables were HK$63.372 million, a significant increase from the end of 2024. Trade payables over 6 months accounted for the largest proportion. Accruals and other payables included amounts due to Titron Group Holdings Limited and the vendor of Delong Group, which are unsecured, interest-free, and repayable on demand Details of Trade and Other Payables | Item | 30 June 2025 (HK$ thousand) | 31 December 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade payables | 63,372 | 45,477 | | Amount due to Titron Group Holdings Limited | 1,700 | 1,700 | | Amount due to a vendor | 7,500 | 7,500 | | Interest payable | 3,308 | 2,690 | | Amounts due to directors of certain subsidiaries | 7,375 | 7,375 | | Accruals and other payables | 3,174 | 3,560 | | **Total** | **86,429** | **68,302** | Ageing Analysis of Trade Payables (by invoice date) | Ageing | 30 June 2025 (HK$ thousand) | 31 December 2024 (HK$ thousand) | | :--- | :--- | :--- | | Within 3 months | – | – | | Over 3 months but within 6 months | 10,202 | – | | Over 6 months | 53,170 | 45,477 | | **Total** | **63,372** | **45,477** | - The average credit period granted by suppliers for trade purchases is up to **90 days**[156](index=156&type=chunk) - Amounts due to Titron Group Holdings Limited and the vendor of Delong Group are unsecured, interest-free, and repayable on demand[157](index=157&type=chunk)[158](index=158&type=chunk) [14. Share Capital](index=36&type=section&id=14.%20SHARE%20CAPITAL) As of June 30, 2025, the Company's authorized share capital was 80,000,000,000 shares, amounting to HK$400,000 thousand. The issued and fully paid share capital was 967,551,792 shares, amounting to HK$48,378 thousand, remaining unchanged from the end of 2024 Details of Share Capital | Item | Number of Shares | Amount (HK$ thousand) | | :--- | :--- | :--- | | Authorized share capital (as at 30 June 2025 and 31 December 2024) | 80,000,000,000 | 400,000 | | Issued and fully paid share capital (as at 30 June 2025 and 31 December 2024) | 967,551,792 | 48,378 | [15. Related Party Transactions](index=37&type=section&id=15.%20RELATED%20PARTY%20TRANSACTIONS) For the six months ended June 30, 2025, the total remuneration for the Group's key management personnel (directors and other key management members) was HK$426 thousand, a slight increase from the prior period Key Management Personnel Remuneration | Item | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Salaries and short-term employee benefits | 426 | 408 | | Post-employment benefits | – | – | | **Total** | **426** | **408** | [16. Capital Commitments](index=37&type=section&id=16.%20CAPITAL%20COMMITMENTS) As of June 30, 2025, and December 31, 2024, the Group had no significant capital commitments - As at June 30, 2025 and December 31, 2024, the Group had no significant capital commitments[164](index=164&type=chunk)[166](index=166&type=chunk) [17. Events After the Reporting Period](index=37&type=section&id=17.%20EVENTS%20AFTER%20THE%20REPORTING%20PERIOD) As of the date of this report, no significant events have occurred after the six months ended June 30, 2025 - As of the date of this report, there were no significant events after the six months ended June 30, 2025[165](index=165&type=chunk)[167](index=167&type=chunk)

Report Overview [Summary](index=2&type=section&id=Summary) The Group reported revenue of HKD 4.50 million and profit of HKD 7.03 million for the six months ended June 30, 2025, with basic earnings per share of 0.09 HK cents, and no dividend recommended Summary of Financial Performance | Metric | Amount (HKD thousand) | | :--- | :--- | | Revenue | 4,501 | | Profit | 7,027 | | Profit attributable to owners of the Company | 6,975 | | Basic earnings per share | 0.09 HK cents | - The Directors do not recommend the payment of a dividend for the six months ended June 30, 2025[7](index=7&type=chunk) [Characteristics of GEM and Disclaimer](index=1&type=section&id=Characteristics%20of%20GEM%20and%20Disclaimer) This section highlights the GEM market's investment risks for small and medium-sized companies and clarifies the Stock Exchange's non-responsibility for the announcement's content - The GEM market is positioned as a listing platform for small and medium-sized companies, carrying higher investment risks, and securities may be subject to significant market volatility[2](index=2&type=chunk) - Hong Kong Exchanges and Clearing Limited and the Stock Exchange take no responsibility for the contents of this announcement, and the Directors of the Company jointly and severally accept full responsibility for the information[2](index=2&type=chunk) Interim Results (Unaudited) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group achieved a profit for the six months ended June 30, 2025, reversing a prior-year loss, mainly driven by the reversal of impairment loss on car purchase prepayments despite reduced revenue Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Metric | 2025 (HKD thousand) | 2024 (HKD thousand) | | :--- | :--- | :--- | | Revenue | 4,501 | 20,343 | | Other income and gains/(losses) – net | 34 | 114 | | Reversal of impairment loss on trade receivables | 779 | – | | Reversal of impairment loss on prepayments for car purchases | 18,642 | – | | Profit/(loss) before income tax | 6,916 | (11,311) | | Profit/(loss) for the period from continuing operations | 7,027 | (11,282) | | Loss for the period from discontinued operations | – | (1,700) | | Profit/(loss) for the period | 7,027 | (12,982) | | Profit/(loss) attributable to owners of the Company | 6,975 | (12,973) | | Basic earnings/(loss) per share | 0.09 HK cents | (0.17) HK cents | - Profit for the period was primarily attributable to the reversal of impairment loss on prepayments for car purchases of approximately **HKD 18,642 thousand**[8](index=8&type=chunk) [Condensed Consolidated Statement of Financial Position](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets and net assets increased, with an improved net current liabilities position indicating reduced liquidity pressure Condensed Consolidated Statement of Financial Position (As at June 30, 2025) | Metric | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | | :--- | :--- | :--- | | Non-current assets | 46,750 | 67,430 | | Current assets | 90,507 | 50,320 | | Total assets | 137,257 | 117,750 | | Current liabilities | 112,567 | 100,963 | | Net current liabilities | (22,060) | (50,643) | | Net assets | 22,762 | 14,770 | | Equity attributable to owners of the Company | 22,812 | 14,870 | - Total current liabilities exceeded total current assets by approximately **HKD 22,060 thousand**, an improvement from **HKD 50,643 thousand** at the end of 2024[11](index=11&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) The Group's equity attributable to owners increased from HKD 14,870 thousand to HKD 22,812 thousand for the six months ended June 30, 2025, reflecting period profit and other comprehensive income Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30) | Item | June 30, 2025 (HKD thousand) | January 1, 2024 (HKD thousand) | | :--- | :--- | :--- | | Balance at beginning of period/year | 14,870 | 118,052 | | Profit/(loss) for the period | 6,975 | (12,973) | | Other comprehensive income/(loss) for the period | 967 | (3,076) | | Total comprehensive income/(loss) for the period | 7,942 | (16,049) | | Balance at end of period/year | 22,812 | 102,003 | [Condensed Consolidated Statement of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, the Group experienced net cash outflows across operating, investing, and financing activities, leading to a decrease in cash and cash equivalents Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Item | 2025 (HKD thousand) | 2024 (HKD thousand) | | :--- | :--- | :--- | | Net cash (used in)/generated from operating activities | (1,010) | 7,728 | | Net cash used in investing activities | (10) | (23) | | Net cash used in financing activities | (3,000) | (1,713) | | Net (decrease)/increase in cash and cash equivalents | (4,020) | 5,992 | | Cash and cash equivalents at beginning of period | 13,532 | 19,554 | | Cash and cash equivalents at end of period | 9,512 | 25,546 | Notes to the Financial Statements [General Information](index=10&type=section&id=General%20Information) The Company, incorporated in the Cayman Islands, primarily engages in car trading and securities trading, having terminated its Hong Kong brokerage services and changed its functional currency to RMB on July 9, 2024 - The Group primarily engages in car trading, providing agency services and procurement of accessories in China, and trading of listed securities in Hong Kong[17](index=17&type=chunk) - The Hong Kong brokerage and securities margin financing services business was terminated on **July 9, 2024**, and the functional currency was changed from HKD to RMB[17](index=17&type=chunk) - Mr. Wang Jiawei, Chairman and Executive Director of the Company, is the ultimate controlling party[16](index=16&type=chunk) [Basis of Preparation](index=11&type=section&id=Basis%20of%20Preparation) The unaudited condensed consolidated financial statements are prepared under HKAS 34 on a going concern basis, with the Board implementing plans to ensure sufficient working capital despite current liabilities exceeding assets - The 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[19](index=19&type=chunk) - The Group's total current liabilities exceeded total current assets by approximately **HKD 22,060 thousand**, but the Board considers the going concern basis appropriate[20](index=20&type=chunk) - To address liquidity issues, the Company plans to dispose of Huayi Property Limited for **HKD 29,000 thousand**, using proceeds to repay borrowings, and implement measures to enhance sales network and control costs[22](index=22&type=chunk) [Revenue](index=12&type=section&id=Revenue) For the six months ended June 30, 2025, the Group's revenue of HKD 4,501 thousand primarily came from car trading as a principal, significantly lower than the prior year, with no accessory procurement income Revenue Breakdown (For the six months ended June 30) | Major Product or Service Line | 2025 (HKD thousand) | 2024 (HKD thousand) | | :--- | :--- | :--- | | Car trading as a principal by the Group | 4,501 | 19,715 | | Agency and service fee income from accessory procurement | – | 628 | | **Total Revenue** | **4,501** | **20,343** | - All revenue is recognized at a point in time[23](index=23&type=chunk) [Segment Information](index=13&type=section&id=Segment%20Information) The Group's reportable segments include car trading and listed securities trading, with the car trading segment generating HKD 4,501 thousand in revenue and HKD 16,794 thousand in profit for the first half of 2025 - The Group's reportable segments include: car trading, providing agency services and procurement of accessories; trading of listed securities; and the discontinued brokerage and securities margin financing services[25](index=25&type=chunk) Revenue and Results Analysis by Reportable Segment (For the six months ended June 30) | Segment | 2025 Revenue (HKD thousand) | 2025 Profit/(Loss) (HKD thousand) | 2024 Revenue (HKD thousand) | 2024 Loss (HKD thousand) | | :--- | :--- | :--- | :--- | :--- | | Car trading, agency services and accessory procurement | 4,501 | 16,794 | 20,343 | (1,739) | | Trading of listed securities | – | (208) | – | (80) | | Brokerage and securities margin financing services (discontinued) | – | – | 157 | (1,698) | | **Total** | **4,501** | **7,027** | **20,500** | **(12,982)** | - All revenue from external customers is derived from China[28](index=28&type=chunk) [Other Income and Gains/(Losses) – Net](index=14&type=section&id=Other%20Income%20and%20Gains%2F(Losses)%20%E2%80%93%20Net) For the six months ended June 30, 2025, the Group's net other income and gains totaled HKD 34 thousand, mainly from bank interest and sundry income, partially offset by net exchange losses Other Income and Gains/(Losses) – Net (For the six months ended June 30) | Item | 2025 (HKD thousand) | 2024 (HKD thousand) | | :--- | :--- | :--- | | Bank interest income | 35 | 42 | | Sundry income | 97 | 109 | | Fair value gain on financial assets at fair value through profit or loss – listed equity securities | – | 24 | | Net exchange (loss)/gain | (98) | 76 | | Loss on disposal of financial assets at fair value through profit or loss | – | (137) | | **Other income and gains/(losses) – net** | **34** | **114** | [Income Tax Credit](index=16&type=section&id=Income%20Tax%20Credit) The Group recorded a deferred tax credit of HKD 111 thousand for the period, with no income tax provision due to tax losses incurred by group companies Income Tax Credit (For the six months ended June 30) | Item | 2025 (HKD thousand) | 2024 (HKD thousand) | | :--- | :--- | :--- | | Deferred tax credit | (111) | (29) | - No provision for Hong Kong profits tax and PRC enterprise income tax was made as group companies incurred tax losses during the period[33](index=33&type=chunk) [Discontinued Operations](index=16&type=section&id=Discontinued%20Operations) The Group completed the disposal of Sinofortune BVI on July 9, 2024, terminating its brokerage services, resulting in no revenue or loss from discontinued operations during the current period - The Group disposed of its subsidiary Sinofortune BVI on **July 9, 2024**, terminating its brokerage and securities margin financing services business[34](index=34&type=chunk) Loss for the Period from Discontinued Operations (For the six months ended June 30) | Item | 2025 (HKD thousand) | 2024 (HKD thousand) | | :--- | :--- | :--- | | Revenue | – | 157 | | Loss before income tax | – | (1,700) | | Loss for the period from discontinued operations | – | (1,700) | [Earnings/(Loss) Per Share](index=17&type=section&id=Earnings%2F(Loss)%20Per%20Share) Basic earnings per share attributable to owners of the Company improved from a loss of 0.17 HK cents to a profit of 0.09 HK cents, with no diluted earnings per share presented Basic Earnings/(Loss) Per Share (For the six months ended June 30) | Item | 2025 (HK cents) | 2024 (HK cents) | | :--- | :--- | :--- | | From continuing and discontinued operations | 0.09 | (0.17) | | From continuing operations | 0.09 | (0.15) | | From discontinued operations | – | (0.02) | - Diluted earnings/(loss) per share for the six months ended June 30, 2025 and 2024 were not presented as there were no potential ordinary shares in issue for both periods[42](index=42&type=chunk) [Trade Receivables](index=18&type=section&id=Trade%20Receivables) As of June 30, 2025, the Group's net trade receivables were HKD 218 thousand, primarily from car trading and all current, benefiting from a HKD 779 thousand impairment loss reversal Trade Receivables (As at June 30, 2025) | Item | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | | :--- | :--- | :--- | | Gross receivables | 1,526 | 2,038 | | Less: Impairment loss recognized | (1,308) | (2,038) | | **Net amount** | **218** | **–** | - Trade receivables from car trading are due within **120 days** from the invoice date, with all outstanding amounts at period-end due within **0 to 30 days**[44](index=44&type=chunk)[45](index=45&type=chunk) Movement in Impairment Loss on Trade Receivables | Item | For the six months ended June 30, 2025 (HKD thousand) | For the year ended December 31, 2024 (HKD thousand) | | :--- | :--- | :--- | | At beginning of period/year | 2,038 | 1,672 | | (Reversal of)/impairment loss recognized during period/year | (779) | 429 | | At end of period/year | 1,308 | 2,038 | [Prepayments, Deposits and Other Receivables](index=20&type=section&id=Prepayments%2C%20Deposits%20and%20Other%20Receivables) As of June 30, 2025, the Group's prepayments, deposits, and other receivables totaled HKD 109,474 thousand, including significant car purchase deposits, with a HKD 18,642 thousand impairment loss reversal Prepayments, Deposits and Other Receivables (As at June 30, 2025) | Item | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | | :--- | :--- | :--- | | Deposits paid for car purchases for resale | 103,177 | 74,300 | | Less: Impairment loss recognized | (57,449) | (75,781) | | Other receivables | 63,257 | 83,271 | | **Total** | **109,474** | **83,879** | Movement in Impairment Loss on Deposits Paid for Car Purchases for Resale | Item | For the six months ended June 30, 2025 (HKD thousand) | For the year ended December 31, 2024 (HKD thousand) | | :--- | :--- | :--- | | At beginning of period/year | 75,781 | – | | (Reversal of)/impairment loss recognized during period/year | (18,642) | 75,805 | | At end of period/year | 57,449 | 75,781 | [Amounts Due to Directors](index=21&type=section&id=Amounts%20Due%20to%20Directors) Amounts due to Directors are unsecured, interest-free, and repayable on demand - Amounts due to Directors are unsecured, interest-free, and repayable on demand[49](index=49&type=chunk) [Share Capital and Premium](index=21&type=section&id=Share%20Capital%20and%20Premium) As of June 30, 2025, the Company's issued share capital was approximately HKD 77,489 thousand, comprising 7,748,958,120 shares of HKD 0.01 par value each Share Capital and Premium (As at June 30, 2025) | Item | Number of Shares (thousand shares) | Ordinary Shares (HKD thousand) | Share Premium (HKD thousand) | Total (HKD thousand) | | :--- | :--- | :--- | :--- | :--- | | As at January 1, 2025 and June 30, 2025 | 7,748,958 | 77,489 | 1,673,299 | 1,750,788 | - The Company's authorized ordinary share capital is **10,000,000,000 shares** with a par value of **HKD 0.01** each[50](index=50&type=chunk) [Dividends](index=21&type=section&id=Dividends) The Directors do not recommend a dividend payment for the six months ended June 30, 2025 - The Directors of the Company do not recommend the payment of a dividend for the six months ended June 30, 2025[50](index=50&type=chunk) Business and Financial Review [Business Review](index=22&type=section&id=Business%20Review) For the six months ended June 30, 2025, the Group reported HKD 4.50 million in revenue, a significant decrease due to market competition, but achieved HKD 7.03 million profit primarily from impairment loss reversal on car purchase prepayments Business Performance Comparison (For the six months ended June 30) | Metric | 2025 (HKD million) | 2024 (HKD million) | Change (HKD million) | | :--- | :--- | :--- | :--- | | Revenue | 4.50 | 20.34 | (15.84) | | Profit/(Loss) | 7.03 | (12.98) | 20.01 | | Basic earnings/(loss) per share | 0.09 HK cents | (0.17) HK cents | 0.26 HK cents | - The decrease in revenue was primarily due to intense price competition in the China market, geopolitical tensions, and global trade restrictions[52](index=52&type=chunk)[54](index=54&type=chunk) - The Group has invested in the new drug development market in China, with one new drug entering Phase II clinical trials[53](index=53&type=chunk) [Prospects](index=23&type=section&id=Prospects) The Group plans to diversify its customer base, introduce new energy vehicles, explore China's new drug development market, and improve its financial position through a property sale and leaseback arrangement - Chongqing Shengyu Hongjia International Trade Co., Ltd. has increased its customer base to **135 clients** and is in negotiations with **44 clients**, striving to reduce customer reliance[55](index=55&type=chunk) - The Group plans to leverage the global green transformation and technological advancements in the automotive industry to introduce more new energy vehicles to its customers[56](index=56&type=chunk) - The Company has entered into an agreement to dispose of its entire equity interest in Huayi Property Limited for a total consideration of **HKD 29 million**, and will lease back the property for **two years** at a monthly rent of **HKD 130,000**[57](index=57&type=chunk) [Financial Review](index=25&type=section&id=Financial%20Review) As of June 30, 2025, the Group's current assets were HKD 90.51 million, with an improved current ratio of 0.8 times and a decreased gearing ratio of 501.9%, alongside HKD 9.51 million in cash and HKD 25 million in borrowings Key Financial Indicators (As at June 30, 2025) | Metric | June 30, 2025 (HKD million) | December 31, 2024 (HKD million) | | :--- | :--- | :--- | | Current assets | 90.51 | 50.32 | | Bank balances and cash | 9.51 | 13.53 | | Total borrowings | 25.00 | 28.00 | | Equity attributable to owners of the Company | 22.81 | 14.87 | | **Current Ratio** | **0.8 times** | **0.5 times** | | **Gearing Ratio** | **501.9%** | **692.6%** | - Equity attributable to owners of the Company increased by **53.4%** to approximately **HKD 22.81 million**[59](index=59&type=chunk) [Share Capital](index=25&type=section&id=Share%20Capital) As of June 30, 2025, the Company's authorized share capital was HKD 100,000,000, with issued share capital of approximately HKD 77,489,581 comprising 7,748,958,120 shares - The Company's authorized share capital is **HKD 100,000,000**, and its issued share capital is approximately **HKD 77,489,581**[60](index=60&type=chunk) [Foreign Exchange Risk](index=25&type=section&id=Foreign%20Exchange%20Risk) The Group manages foreign exchange risk through local business cash flows and had no significant unhedged foreign exchange exposure from interest rate mismatches as of June 30, 2025 - The Group manages foreign exchange risk arising from its overseas operations by using cash flows generated from local business transactions to meet local business and investment needs[61](index=61&type=chunk) - As of June 30, 2025, the Group had no significant unhedged foreign exchange exposure due to interest rate mismatches[61](index=61&type=chunk) [Employee Information](index=25&type=section&id=Employee%20Information) As of June 30, 2025, the Group employed 36 staff with total costs of approximately HKD 5.27 million, and its remuneration policy is annually reviewed Employee Information | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of employees | 36 | 38 | | Total staff costs (for the period ended June 30) | HKD 5.27 million | HKD 6.52 million | - Remuneration packages include basic salary, MPF, medical benefits, and discretionary bonuses, reviewed annually to ensure alignment with industry standards[62](index=62&type=chunk) [Pledged Assets](index=26&type=section&id=Pledged%20Assets) As of June 30, 2025, the Group's leasehold land and buildings, with a carrying amount of approximately HKD 17.07 million, were pledged for credit facilities - The Group's leasehold land and buildings with a carrying amount of approximately **HKD 17.07 million** were pledged as security for credit facilities granted to the Group[64](index=64&type=chunk) [Contingent Liabilities](index=26&type=section&id=Contingent%20Liabilities) The Group had no contingent liabilities as of June 30, 2025, and December 31, 2024 - The Group had no contingent liabilities[65](index=65&type=chunk) [Significant Investments, Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=26&type=section&id=Significant%20Investments%2C%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) The Company entered an agreement to dispose of Huayi Property Limited, a major transaction requiring shareholder approval and remaining uncompleted as of the announcement date - The Company has entered into a formal agreement with an independent third party, Advantage Property Limited, for the disposal of its entire equity interest in Huayi Property Limited[66](index=66&type=chunk) - This disposal constitutes a major disposal transaction for the Company and therefore requires shareholder approval at an extraordinary general meeting, which has not been completed as of the date of this announcement[66](index=66&type=chunk) Corporate Governance and Other Information [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company](index=26&type=section&id=Directors%27%20and%20Chief%20Executive%27s%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company) As of June 30, 2025, Directors and the Chief Executive held interests in the Company's shares, with Chairman Mr. Wang Jiawei holding 27.40%, and no other disclosable interests or short positions Directors' Shareholding Summary | Director Name | Capacity | Number of Shares Held | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Wang Jiawei | Beneficial owner | 2,123,395,935 | 27.40% | | Li Yu Mei | Beneficial owner | 2,780,127 | 0.04% | | Liu Run Tong | Beneficial owner | 2,646,000 | 0.03% | - Save as disclosed above, none of the Directors or Chief Executive of the Company had any interests or short positions in the shares, underlying shares or debentures of the Company or any associated corporation that were required to be notified to the Company and the Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the Securities and Futures Ordinance[68](index=68&type=chunk) [Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares and Underlying Shares of the Company](index=27&type=section&id=Substantial%20Shareholders%27%20and%20Other%20Persons%27%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares%20of%20the%20Company) As of June 30, 2025, the Company was unaware of any substantial shareholders or other persons, beyond the Directors, holding disclosable interests or short positions in its shares - Save for the Directors, the Company is not aware of any person who had interests or short positions in the shares or underlying shares which were required to be disclosed to the Company and the Stock Exchange pursuant to Divisions 2 and 3 of Part XV of the Securities and Futures Ordinance[69](index=69&type=chunk) [Competing Interests](index=28&type=section&id=Competing%20Interests) The Directors confirm that as of June 30, 2025, no Directors, controlling shareholders, or their associates had any competing business or conflicts of interest with the Group - The Directors are not aware of any business or interest of any Director, controlling shareholder, or their respective associates that competes or may compete with the Group's business, nor any other conflicts of interest between such persons and the Group, existing or potential[72](index=72&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=28&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Listed%20Securities) Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the reporting period - During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[73](index=73&type=chunk) [Compliance with the Corporate Governance Code](index=28&type=section&id=Compliance%20with%20the%20Corporate%20Governance%20Code) The Company complied with the GEM Listing Rules Corporate Governance Code, except for a deviation from code provision C.2.1 where Mr. Wang Jiawei holds both Chairman and Chief Executive roles - The Company has applied and complied with all the principles and code provisions set out in Appendix C1 to the GEM Listing Rules Corporate Governance Code[74](index=74&type=chunk) - There is a deviation from code provision C.2.1 (the roles of Chairman and Chief Executive should be separate), as Mr. Wang Jiawei concurrently holds both positions[75](index=75&type=chunk) [Directors' Securities Transactions](index=28&type=section&id=Directors'%20Securities%20Transactions) The Company adopted a stringent code of conduct for Directors' securities transactions, with all Directors confirming compliance during the period - The Company has adopted a code of conduct regarding Directors' securities transactions, the terms of which are no less stringent than the required standard set out in Rules 5.48 to 5.67 of the GEM Listing Rules[76](index=76&type=chunk) - Following specific enquiry with all Directors, they confirmed compliance with the Company's code of conduct regarding Directors' securities transactions during the year[76](index=76&type=chunk) [Audit Committee](index=29&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive Directors, reviewed and deemed the Group's financial statements compliant with applicable accounting standards, overseeing financial reporting and internal controls - The Audit Committee comprises Professor Zhang Benzheng, Mr. Li Jianxing, and Professor Chen Shuwen, all independent non-executive Directors[78](index=78&type=chunk) - The primary responsibilities of the Audit Committee are to review and oversee the Group's financial reporting process and internal control procedures[77](index=77&type=chunk) - The Audit Committee has reviewed the Group's financial statements for the six months ended June 30, 2025, and considers them to have been prepared in compliance with applicable accounting standards[78](index=78&type=chunk) [Board Approval and Publication Date](index=29&type=section&id=Board%20Approval%20and%20Publication%20Date) This announcement was approved and authorized for publication by the Board on August 29, 2025, listing the Executive, Non-executive, and Independent Non-executive Directors as of that date - This announcement was approved and authorized for publication by the Board on **August 29, 2025**[79](index=79&type=chunk) - As of the date of this announcement, the Executive Directors are Mr. Wang Jiawei and Ms. Li Yu Mei, the Non-executive Director is Mr. Liu Run Tong, and the Independent Non-executive Directors are Professor Zhang Benzheng, Mr. Li Jianxing, Professor Chen Shuwen, and Mr. Li Guan Qun[80](index=80&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性或完整性亦不發表 任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因依賴該等內容而引致之任何損失承擔任何 責任。 Evergrande Property Services Group Limited 恒大物業集團有限公司 （於開曼群島註冊成立的有限責任公司） （股份代號：6666） 截 至 2025 年 6 月 30 日止六個月 未經審核之中期業績公告 財務摘要 截至2025年6月30日止六個月： 董事會不建議就截至2025年6月30日止六個月派付任何中期股息。 – 1 – ‧ 本集團營業收入約人民幣6,646.6百萬元，同比增長約6.9%。 ‧ 本集團毛利潤約人民幣1,198.7百萬元；毛利率約18.0%，同比下降約2.2個百分點。 ‧ 本集團淨利潤約人民幣491.2百萬元；淨利率約7.4%，同比下降約0.6個百分點。 ‧ 本公司擁有人應佔利潤約人民幣472.3百萬元，每股基本盈利約人民幣0.04元。 簡明綜合損益及其他全面收益表 | | | 截至6月30日止六個月 | | | --- | --- | --- | ...

Company Information and Report Overview [Company Basic Information](index=1&type=section&id=1.1%20Company%20Basic%20Information) Zhejiang Chang'an Renheng Technology Co., Ltd. (stock code: 8139) is a company incorporated in the People's Republic of China, primarily engaged in the development, production, and sale of bentonite fine chemicals - Company Name: Zhejiang Chang'an Renheng Technology Co., Ltd., Stock Code: **8139**[1](index=1&type=chunk) - Main Business: Development, production, and sale of bentonite fine chemicals, including paper chemicals, bentonite for metallurgical pellets, and high-quality calcium-based clay[10](index=10&type=chunk) - Established on **December 4, 2000**, and restructured into a joint-stock company on **December 31, 2008**[10](index=10&type=chunk)[11](index=11&type=chunk) [GEM Characteristics and Directors' Responsibility Statement](index=1&type=section&id=1.2%20GEM%20Characteristics%20and%20Directors'%20Responsibility%20Statement) The report highlights that the GEM market offers listing opportunities for small and medium-sized companies, but with higher investment risks and market volatility, and directors are jointly and individually responsible for the accuracy, completeness, and non-misleading nature of the announcement's information - GEM Market Positioning: Provides a listing market for small and medium-sized companies, with higher investment risks and potentially greater market volatility[2](index=2&type=chunk) - Directors' Responsibility: Directors confirm the announcement's information is accurate, complete, not misleading or fraudulent, and without omissions[3](index=3&type=chunk) [Performance Highlights](index=2&type=section&id=1.3%20Performance%20Highlights) For the six months ended June 30, 2025, the company's revenue increased by 7.6% year-on-year, but gross profit decreased by 1.8%, with gross margin falling to 37.2%, resulting in a loss of approximately **RMB 3.005 million** and basic loss per share of **RMB 0.078**, with no interim dividend declared 2025 H1 Performance Highlights | Indicator | 2025 H1 (RMB) | 2024 H1 (RMB) | Year-on-year change | | :--- | :--- | :--- | :--- | | Revenue | 98,023,000 | 91,123,000 | Increase 7.6% | | Gross profit | 36,507,000 | 37,184,000 | Decrease 1.8% | | Gross margin | 37.2% | 40.8% | Decrease 3.6 percentage points | | Loss / Profit attributable to equity holders of the Company for the period | (3,005,000) | 2,805,000 | Shift from profit to loss | | Basic Loss / Earnings per share | (0.078) | 0.073 | Shift from profit to loss | | Interim Dividend | Zero | Zero | No declaration | Unaudited Condensed Consolidated Financial Statements [Consolidated Statement of Comprehensive Loss / Income](index=3&type=section&id=2.1%20Consolidated%20Statement%20of%20Comprehensive%20Loss%20%2F%20Income) For the six months ended June 30, 2025, revenue increased to **RMB 98.0227 million**, but increased cost of sales, distribution costs, and administrative expenses led to a decrease in gross profit, resulting in a loss of **RMB 3.0052 million** for the period Key Data from Consolidated Statement of Comprehensive Loss / Income | Indicator | 2025 H1 (RMB) | 2024 H1 (RMB) | | :--- | :--- | :--- | | Revenue | 98,022,700 | 91,123,166 | | Cost of sales | (61,515,653) | (53,939,153) | | Gross profit | 36,507,047 | 37,184,013 | | Distribution costs | (17,011,145) | (12,938,361) | | Administrative expenses | (12,653,893) | (11,048,469) | | Research and development expenses | (6,264,694) | (8,068,052) | | Operating profit | 1,177,720 | 6,177,628 | | Finance costs – net | (3,871,417) | (3,140,291) | | Loss / Profit before income tax | (2,693,697) | 3,037,337 | | Income tax expense | (311,549) | (232,794) | | Loss / Profit attributable to equity holders of the Company for the period | (3,005,246) | 2,804,543 | | Basic Loss / Earnings per share | (0.078) | 0.073 | [Consolidated Statement of Financial Position](index=4&type=section&id=2.2%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets slightly increased, non-current assets remained stable, and current assets, including inventories, trade and other receivables, and cash and cash equivalents, all grew, while total equity slightly decreased and total liabilities increased, mainly due to a significant rise in current borrowings Key Data from Consolidated Statement of Financial Position | Indicator | 2025-06-30 (RMB) | 2024-12-31 (RMB) | | :--- | :--- | :--- | | Total assets | 345,336,078 | 337,982,310 | | Non-current assets | 149,071,870 | 146,955,912 | | Current assets | 196,264,208 | 191,026,398 | | Total equity | 115,682,426 | 118,694,270 | | Total liabilities | 229,653,652 | 219,288,040 | | Non-current liabilities | 14,520,565 | 21,274,123 | | Current liabilities | 215,133,087 | 198,013,917 | - Current borrowings increased from **RMB 158.19 million** at the end of 2024 to **RMB 176.24 million** at the end of June 2025, primarily contributing to the increase in current liabilities[7](index=7&type=chunk) [Consolidated Statement of Changes in Equity](index=6&type=section&id=2.3%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, total equity decreased from **RMB 118.694 million** at the beginning of the period to **RMB 115.682 million**, mainly due to a loss of **RMB 3.0052 million** and other comprehensive loss of **RMB 6,598** during the period Key Data from Consolidated Statement of Changes in Equity | Indicator | 2025-01-01 (RMB) | 2025-06-30 (RMB) | | :--- | :--- | :--- | | Share capital | 38,400,000 | 38,400,000 | | Other reserves | 50,342,050 | 50,335,452 | | Retained earnings | 29,952,220 | 26,946,974 | | Total equity | 118,694,270 | 115,682,426 | - A loss of **RMB 3.005 million** and other comprehensive loss of **RMB 6,598** for the period led to a decrease in total equity[8](index=8&type=chunk) [Consolidated Statement of Cash Flows](index=7&type=section&id=2.4%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash flow from operating activities turned from a net inflow to a net outflow of **RMB 0.3407 million**, net cash outflow from investing activities slightly decreased, while net cash inflow from financing activities significantly increased, with cash and cash equivalents at period-end rising to **RMB 19.8624 million** Key Data from Consolidated Statement of Cash Flows | Indicator | 2025 H1 (RMB) | 2024 H1 (RMB) | | :--- | :--- | :--- | | Net cash (used in) / generated from operating activities | (340,739) | 11,427,084 | | Net cash used in investing activities | (3,764,645) | (3,998,033) | | Net cash generated from financing activities | 7,582,914 | 5,100,483 | | Net increase in cash and cash equivalents | 3,477,530 | 12,529,534 | | Cash and cash equivalents at end of period | 19,862,374 | 27,318,038 | - Net cash flow from operating activities shifted from a net inflow of **RMB 11.4271 million** in the same period of 2024 to a net outflow of **RMB 0.3407 million** in the first half of 2025[9](index=9&type=chunk) - Net cash inflow from financing activities increased from **RMB 5.1005 million** in the same period of 2024 to **RMB 7.5829 million** in the first half of 2025[9](index=9&type=chunk) Notes to the Financial Statements [General Information](index=8&type=section&id=3.1%20General%20Information) This section provides basic information about the company and its subsidiaries, including their main business, establishment history, controlling shareholder, registered address, and listing status - The Group is primarily engaged in the development, production, and sale of bentonite fine chemicals[10](index=10&type=chunk) - The controlling shareholder is **Mr. Zhang Youlian**[10](index=10&type=chunk) - The Company was listed on the GEM of the Stock Exchange on **January 16, 2015**[12](index=12&type=chunk) [Basis of Preparation and Accounting Policies](index=8&type=section&id=3.2%20Basis%20of%20Preparation%20and%20Accounting%20Policies) The interim financial information is prepared in accordance with IAS 34 and GEM Listing Rules, with accounting policies consistent with the 2024 annual financial statements, and new IFRS amendments are not expected to have a significant impact on the Group's performance or financial position - Basis of Preparation: International Accounting Standard 34 "Interim Financial Reporting" and the GEM Listing Rules[14](index=14&type=chunk) - Accounting Policies: Consistent with those adopted in the annual financial statements for the year ended **December 31, 2024**[15](index=15&type=chunk) - Impact of New Standards: Directors estimate that the newly revised International Financial Reporting Standards will have no significant impact on the Group's performance and financial position[15](index=15&type=chunk)[17](index=17&type=chunk) [Segment Information](index=9&type=section&id=3.3%20Segment%20Information) All of the Group's business activities revolve around the production and sale of bentonite products, which management considers a single operating segment, thus no segment information is presented - Operating Segment: The Group has only one operating segment, which is the production and sale of bentonite products[18](index=18&type=chunk) [Revenue Breakdown](index=9&type=section&id=3.4%20Revenue%20Breakdown) For the six months ended June 30, 2025, the company's total revenue was **RMB 98.0227 million**, with organic bentonite as the primary source, significant growth in "Bidi powder" and high-quality calcium-based clay, and a decrease in paper chemicals and other products Revenue by Product Category | Product | 2025 H1 (RMB) | 2024 H1 (RMB) | | :--- | :--- | :--- | | Organic bentonite | 52,981,658 | 47,778,559 | | Paper chemicals | 17,085,650 | 19,653,930 | | Inorganic gel | 15,144,080 | 14,926,620 | | Dry strength agent | 5,854,968 | 5,137,843 | | Bidi powder | 2,991,464 | 207,618 | | High-quality calcium-based clay | 2,280,351 | 807,965 | | Others | 1,684,529 | 2,610,631 | | **Total revenue** | **98,022,700** | **91,123,166** | [Other Income – Net](index=10&type=section&id=3.5%20Other%20Income%20%E2%80%93%20Net) For the six months ended June 30, 2025, other income net was **RMB 0.5447 million**, a decrease from **RMB 1.0485 million** in the prior year, primarily due to reduced government grants Other Income – Net | Item | 2025 H1 (RMB) | 2024 H1 (RMB) | | :--- | :--- | :--- | | Government grants – cost-related | 346,610 | 993,846 | | Government grants – asset-related | – | 196,734 | | Others | 198,111 | (142,083) | | **Total** | **544,721** | **1,048,497** | - Total government grants decreased from **RMB 1.1906 million** in the same period of 2024 to **RMB 0.3466 million** in the first half of 2025[21](index=21&type=chunk) [Finance Costs – Net](index=10&type=section&id=3.6%20Finance%20Costs%20%E2%80%93%20Net) For the six months ended June 30, 2025, finance costs net increased to **RMB 3.8714 million** from **RMB 3.1403 million** in the prior year, mainly due to higher interest expenses Finance Costs – Net | Item | 2025 H1 (RMB) | 2024 H1 (RMB) | | :--- | :--- | :--- | | Finance income – interest income from bank deposits | 28,712 | 49,628 | | Finance costs – interest expenses | (3,895,296) | (3,251,827) | | Finance costs – exchange gains on borrowings, cash and cash equivalents – net | 53,872 | 61,908 | | Finance costs – interest expense on lease liabilities | (58,705) | – | | **Finance costs – net** | **(3,871,417)** | **(3,140,291)** | - Interest expenses increased from **RMB 3.2518 million** in the same period of 2024 to **RMB 3.8953 million** in the first half of 2025[22](index=22&type=chunk) [Loss / Profit Before Income Tax](index=11&type=section&id=3.7%20Loss%20%2F%20Profit%20Before%20Income%20Tax) For the six months ended June 30, 2025, the company reported a loss before income tax of **RMB 2.6937 million**, compared to a profit of **RMB 3.0373 million** in the prior year, with increased depreciation and amortization of leasehold improvements Loss / Profit for the period after charging the following | Item | 2025 H1 (RMB) | 2024 H1 (RMB) | | :--- | :--- | :--- | | Depreciation | 3,484,314 | 3,211,070 | | Amortisation of prepaid lease payments for land | 107,992 | 91,254 | | Amortisation of mining rights | 57,800 | 57,800 | | Amortisation of leasehold improvements | 1,577,272 | 1,212,070 | [Income Tax Expense](index=11&type=section&id=3.8%20Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense increased to **RMB 0.3115 million**, with the company and some subsidiaries enjoying a 15% preferential tax rate for high-tech enterprises, some subsidiaries a 20% preferential tax rate for small low-profit enterprises, and US operations taxed at 21% Income Tax Expense | Item | 2025 H1 (RMB) | 2024 H1 (RMB) | | :--- | :--- | :--- | | Current income tax | (131,862) | (232,794) | | Deferred income tax | (179,687) | – | | **Income tax expense** | **(311,549)** | **(232,794)** | - The Company and its subsidiary, Yangyuan Renheng Fine Clay Co., Ltd., enjoy a **15%** preferential tax rate as high-tech enterprises[24](index=24&type=chunk) - The subsidiary, Zhejiang Chang'an Renheng Chemical Co., Ltd., enjoys a **20%** preferential income tax rate as a small low-profit enterprise[25](index=25&type=chunk) - Profits from the United States are subject to income tax at a rate of **21%**[25](index=25&type=chunk) [Loss / Earnings Per Share](index=12&type=section&id=3.9%20Loss%20%2F%20Earnings%20Per%20Share) For the six months ended June 30, 2025, the company reported a basic loss per share of **RMB 0.078**, compared to earnings per share of **RMB 0.073** in the prior year, with diluted loss per share being the same as basic loss per share due to the absence of potentially dilutive ordinary shares Loss / Earnings Per Share | Indicator | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Loss / Profit attributable to equity holders of the Company (RMB) | (3,005,246) | 2,804,543 | | Weighted average number of ordinary shares in issue | 38,400,000 | 38,400,000 | | Basic Loss / Earnings per share (RMB per share) | (0.078) | 0.073 | - Diluted Loss / Earnings per share is the same as basic Loss / Earnings per share, as there are no potentially dilutive ordinary shares[28](index=28&type=chunk) [Dividends](index=12&type=section&id=3.10%20Dividends) The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board of Directors resolved not to declare any interim dividend for the six months ended **June 30, 2025**[29](index=29&type=chunk) [Property, Plant and Equipment](index=12&type=section&id=3.11%20Property%2C%20Plant%20and%20Equipment) For the six months ended June 30, 2025, the Group acquired property, plant, and equipment totaling approximately **RMB 10.6567 million**, a decrease from **RMB 14.0358 million** in the prior year Acquisition of Property, Plant and Equipment | Item | 2025 H1 (RMB) | 2024 H1 (RMB) | | :--- | :--- | :--- | | Acquisition of property, plant and equipment | 10,656,702 | 14,035,835 | [Trade and Other Receivables, Prepayments and Other Current Assets](index=13&type=section&id=3.12%20Trade%20and%20Other%20Receivables%2C%20Prepayments%20and%20Other%20Current%20Assets) As of June 30, 2025, net trade and other receivables, prepayments, and other current assets totaled **RMB 84.3514 million**, a slight increase from the end of 2024, with a decrease in net trade receivables but a significant increase in prepayments, and credit terms generally ranging from 90 to 180 days Trade and Other Receivables, Prepayments and Other Current Assets | Item | 2025-06-30 (RMB) | 2024-12-31 (RMB) | | :--- | :--- | :--- | | Trade receivables – net | 69,060,244 | 71,606,234 | | Other receivables – net | 2,189,385 | 2,714,251 | | Prepayments | 12,733,150 | 8,898,261 | | Other current assets | 368,638 | 798,193 | | **Total** | **84,351,417** | **84,016,939** | Ageing Analysis of Trade Receivables | Ageing | 2025-06-30 (RMB) | 2024-12-31 (RMB) | | :--- | :--- | :--- | | Within 180 days | 54,315,596 | 54,627,569 | | 180 days to 1 year | 12,710,874 | 12,961,088 | | 1 year to 2 years | 4,223,054 | 6,699,565 | | 2 years to 3 years | 226,813 | 262,213 | | Over 3 years | 2,972,837 | 3,317,986 | | **Total** | **74,449,174** | **77,868,421** | - Credit terms granted to customers generally range from **90 to 180 days**[33](index=33&type=chunk) [Trade and Other Payables](index=15&type=section&id=3.13%20Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables were **RMB 38.2735 million**, a slight decrease from the end of 2024, with an increase in trade payables and a decrease in accrued staff salaries and benefits Trade and Other Payables | Item | 2025-06-30 (RMB) | 2024-12-31 (RMB) | | :--- | :--- | :--- | | Trade payables | 21,910,049 | 18,994,736 | | Other payables | 10,559,412 | 11,612,247 | | Accrued staff salaries and benefits | 4,318,431 | 7,395,042 | | Accrued taxes (excluding income tax) | 1,485,624 | 1,219,435 | | **Total** | **38,273,516** | **39,221,460** | Ageing Analysis of Trade Payables | Ageing | 2025-06-30 (RMB) | 2024-12-31 (RMB) | | :--- | :--- | :--- | | Within 6 months | 18,477,698 | 15,225,818 | | 6 months to 1 year | 38,169 | 99,152 | | 1 year to 2 years | 37,605 | 75,116 | | 2 years to 3 years | 33,552 | 22,291 | | Over 3 years | 3,323,025 | 3,572,359 | | **Total** | **21,910,049** | **18,994,736** | Operating and Financial Review [Market and Industry Review](index=16&type=section&id=4.1%20Market%20and%20Industry%20Review) China's non-metallic mineral product demand is in a growth opportunity period, with rapid development in the bentonite industry and diverse products, while national policies encourage classified mining, technological innovation, and deep processing to promote high-value development, and the paper industry is moving towards efficiency, quality, and low consumption - China's non-metallic mineral product demand is in a growth opportunity period characterized by "quality and quantity improvement in traditional sectors, accelerated expansion in emerging sectors, and effective promotion of demand and supply"[36](index=36&type=chunk) - The bentonite industry has successfully developed products such as edible oil decolorizing agents, drilling mud viscosifiers, and mycotoxin detoxifiers[36](index=36&type=chunk) - National plans guide the classified mining of bentonite mineral resources, enhancing technological R&D and deep processing capabilities to transform "resource advantages" into "technological advantages" and "economic advantages"[37](index=37&type=chunk) - The paper industry continues to develop towards a modern large-scale industry characterized by high efficiency, high quality, high benefits, low consumption, and low emissions[38](index=38&type=chunk) [Business Review](index=17&type=section&id=4.2%20Business%20Review) In the first half of 2025, the Group focused on promoting bentonite for paints and coatings, bentonite for oilfields, and putty mortar products, securing supply contracts with major oil companies for oilfield bentonite, while its US subsidiary operated normally and successfully passed mining permit reviews, with R&D expenses of approximately **RMB 6.265 million** - Business Focus: Promoting bentonite for paints and coatings, bentonite for oilfields, and putty mortar products[39](index=39&type=chunk) - Market Expansion: Oilfield bentonite products have secured supply contracts with companies such as **Sinopec** and **PetroChina**[39](index=39&type=chunk) - Subsidiary Operations: The US subsidiary operates normally, and Yangyuan Renheng Fine Clay Co., Ltd. successfully passed its mining permit review[39](index=39&type=chunk) - R&D Investment: R&D expenses for the first half of 2025 were approximately **RMB 6.265 million**[39](index=39&type=chunk) [Revenue Analysis](index=18&type=section&id=4.3%20Revenue%20Analysis) For the six months ended June 30, 2025, total revenue increased by **7.6%** year-on-year, with significant growth in organic bentonite, "Bidi powder" (up **1338.0%**), and high-quality calcium-based clay, while paper chemicals and other chemicals saw a decrease Revenue and Proportion by Product Category | Product | 2025 H1 (RMB Thousand) | Proportion (%) | 2024 H1 (RMB Thousand) | Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | Organic bentonite | 52,982 | 54.1 | 47,778 | 52.4 | | Paper chemicals | 17,086 | 17.4 | 19,654 | 21.6 | | Inorganic gel | 15,144 | 15.4 | 14,927 | 16.4 | | Dry strength agent | 5,855 | 6.0 | 5,138 | 5.6 | | Bidi powder | 2,991 | 3.1 | 208 | 0.2 | | High-quality calcium-based clay | 2,280 | 2.3 | 808 | 0.9 | | Others | 1,685 | 1.7 | 2,610 | 2.9 | | **Total** | **98,023** | **100.0** | **91,123** | **100.0** | - Organic bentonite revenue increased by **10.9%** to **RMB 52.982 million**, primarily due to increased sales volume[41](index=41&type=chunk) - "Bidi powder" revenue significantly increased by **1338.0%** to **RMB 2.991 million**[41](index=41&type=chunk) - Paper chemicals revenue decreased by **13.1%** to **RMB 17.086 million**, primarily due to decreased sales volume[40](index=40&type=chunk) [Cost of Sales Analysis](index=19&type=section&id=4.4%20Cost%20of%20Sales%20Analysis) For the six months ended June 30, 2025, cost of sales increased by **14.0%** year-on-year to **RMB 61.516 million**, with raw material costs being the main component, increasing by **13.9%** due to higher average purchase unit prices and consumption of CPAM Cost of Sales Breakdown | Item | 2025 H1 (RMB Thousand) | Proportion (%) | 2024 H1 (RMB Thousand) | Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | Raw material costs | 48,058 | 78.1 | 42,180 | 78.2 | | Manufacturing overhead costs | 9,166 | 14.9 | 7,929 | 14.7 | | Direct labor costs | 3,322 | 5.4 | 3,021 | 5.6 | | Others | 970 | 1.6 | 809 | 1.5 | | **Total** | **61,516** | **100.0** | **53,939** | **100.0** | - Cost of sales increased by **14.0%** to **RMB 61.516 million**[43](index=43&type=chunk) - Raw material costs increased by **13.9%** to **RMB 48.058 million**, primarily due to an increase in the average purchase unit price and consumption of CPAM (a key raw material for bentonite products)[44](index=44&type=chunk) [Gross Profit and Gross Margin](index=20&type=section&id=4.5%20Gross%20Profit%20and%20Gross%20Margin) For the six months ended June 30, 2025, gross profit decreased by **1.8%** year-on-year to **RMB 36.507 million**, and gross margin declined from **40.8%** to **37.2%**, mainly due to changes in the sales product mix and higher average costs of raw materials and energy Gross Profit and Gross Margin | Indicator | 2025 H1 (RMB) | 2024 H1 (RMB) | | :--- | :--- | :--- | | Gross profit | 36,507,000 | 37,184,000 | | Gross margin | 37.2% | 40.8% | - The decrease in gross margin was primarily due to changes in the sales product mix and higher average costs of raw materials and energy compared to the previous year[46](index=46&type=chunk) [Expense Analysis](index=20&type=section&id=4.6%20Expense%20Analysis) This section details changes in distribution costs, administrative expenses, and research and development expenses, with distribution and administrative costs increasing, while R&D expenses significantly decreased due to reduced project work [Distribution Costs](index=20&type=section&id=4.6.1%20Distribution%20Costs) For the six months ended June 30, 2025, distribution costs increased by **31.5%** year-on-year to **RMB 17.011 million**, primarily due to higher transportation expenses Distribution Costs | Indicator | 2025 H1 (RMB) | 2024 H1 (RMB) | | :--- | :--- | :--- | | Distribution costs | 17,011,000 | 12,938,000 | - The increase in distribution costs was primarily due to higher transportation expenses[47](index=47&type=chunk) [Administrative Expenses](index=20&type=section&id=4.6.2%20Administrative%20Expenses) For the six months ended June 30, 2025, administrative expenses increased by **14.5%** year-on-year to **RMB 12.654 million**, mainly due to higher staff costs and professional fees Administrative Expenses | Indicator | 2025 H1 (RMB) | 2024 H1 (RMB) | | :--- | :--- | :--- | | Administrative expenses | 12,654,000 | 11,048,000 | - The increase in administrative expenses was primarily due to higher staff costs and professional fees[48](index=48&type=chunk) [Research and Development Expenses](index=20&type=section&id=4.6.3%20Research%20and%20Development%20Expenses) For the six months ended June 30, 2025, research and development expenses decreased by **22.3%** year-on-year to **RMB 6.265 million**, mainly due to reduced work on environmental R&D projects with Jilin Petrochemical Design Institute Research and Development Expenses | Indicator | 2025 H1 (RMB) | 2024 H1 (RMB) | | :--- | :--- | :--- | | Research and development expenses | 6,265,000 | 8,068,000 | - The decrease in research and development expenses was primarily due to reduced work on environmental R&D projects with Jilin Petrochemical Design Institute[49](index=49&type=chunk) [Other Income – Net](index=21&type=section&id=4.7%20Other%20Income%20%E2%80%93%20Net) For the six months ended June 30, 2025, other income net was **RMB 0.545 million**, a decrease from **RMB 1.048 million** in the prior year, primarily due to reduced government grants Other Income – Net | Indicator | 2025 H1 (RMB) | 2024 H1 (RMB) | | :--- | :--- | :--- | | Other income – net | 545,000 | 1,048,000 | - The decrease in other income net was primarily due to government grants reducing from **RMB 1.191 million** to **RMB 0.347 million**[50](index=50&type=chunk) [Finance Costs – Net](index=21&type=section&id=4.8%20Finance%20Costs%20%E2%80%93%20Net) For the six months ended June 30, 2025, finance costs net increased to **RMB 3.871 million**, primarily due to an increase in average bank borrowings Finance Costs – Net | Indicator | 2025 H1 (RMB) | 2024 H1 (RMB) | | :--- | :--- | :--- | | Finance costs – net | 3,871,000 | 3,140,000 | - The increase in finance costs net was primarily due to an increase in average bank borrowings[51](index=51&type=chunk) [Income Tax Expense](index=21&type=section&id=4.9%20Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense was **RMB 0.312 million**, an increase from **RMB 0.233 million** in the prior year Income Tax Expense | Indicator | 2025 H1 (RMB) | 2024 H1 (RMB) | | :--- | :--- | :--- | | Income tax expense | 312,000 | 233,000 | [Loss / Profit Attributable to Equity Holders of the Company for the Period](index=21&type=section&id=4.10%20Loss%20%2F%20Profit%20Attributable%20to%20Equity%20Holders%20of%20the%20Company%20for%20the%20Period) Due to the combined effect of the aforementioned factors, the loss attributable to equity holders of the Company for the six months ended June 30, 2025, was **RMB 3.005 million**, compared to a profit of **RMB 2.805 million** in the prior year Loss / Profit Attributable to Equity Holders of the Company for the Period | Indicator | 2025 H1 (RMB) | 2024 H1 (RMB) | | :--- | :--- | :--- | | Loss / Profit attributable to equity holders of the Company for the period | (3,005,000) | 2,805,000 | Financial Position and Future Outlook [Liquidity and Sources of Funds](index=21&type=section&id=5.1%20Liquidity%20and%20Sources%20of%20Funds) The Group primarily meets its working capital needs through cash generated from operations and long-term and short-term bank borrowings, with cash and cash equivalents totaling **RMB 19.862 million** as of June 30, 2025, and the Board believes the Group has sufficient working capital for at least the next twelve months - Sources of Funds: Primarily from cash generated from operations, long-term and short-term bank borrowings, and other borrowings[54](index=54&type=chunk) - The weighted average effective annual interest rates for bank borrowings and other borrowings were **4.29%** and **4.22%**, respectively[54](index=54&type=chunk) Cash and Cash Equivalents | Indicator | 2025-06-30 (RMB) | | :--- | :--- | | Cash and cash equivalents | 19,862,000 | - The Group's cash and cash equivalents increased by approximately **RMB 3.531 million**, primarily contributed by net cash inflow from financing activities[55](index=55&type=chunk) [Capital Structure and Indebtedness](index=22&type=section&id=5.2%20Capital%20Structure%20and%20Indebtedness) As of June 30, 2025, the Group's total borrowings were approximately **RMB 184.6 million**, an increase from the end of 2024, and the Group encountered no difficulties in renewing bank loans during the reporting period Total Borrowings | Indicator | 2025-06-30 (RMB) | 2024-12-31 (RMB) | | :--- | :--- | :--- | | Total borrowings | 184,604,000 | 172,958,000 | - The Group encountered no difficulties in renewing bank loans with lenders during the reporting period[56](index=56&type=chunk) [Gearing Ratio](index=22&type=section&id=5.3%20Gearing%20Ratio) As of June 30, 2025, the Group's gearing ratio was **142.4%**, an increase from **132.0%** at the end of 2024, primarily due to an increase in total equity Gearing Ratio | Indicator | 2025-06-30 | 2024-12-31 | | :--- | :--- | :--- | | Gearing ratio | 142.4% | 132.0% | - The increase in the gearing ratio was primarily due to an increase in total equity[57](index=57&type=chunk) [Pledge of Assets](index=22&type=section&id=5.4%20Pledge%20of%20Assets) As of June 30, 2025, the Group pledged assets including buildings, fixtures and fittings, land use rights, and time deposits totaling approximately **RMB 13.477 million** to banks, a decrease from **RMB 15.463 million** at the end of 2024 Pledge of Assets | Indicator | 2025-06-30 (RMB) | 2024-12-31 (RMB) | | :--- | :--- | :--- | | Total pledged assets | 13,477,000 | 15,463,000 | [Capital Expenditure](index=22&type=section&id=5.5%20Capital%20Expenditure) For the six months ended June 30, 2025, the Group's capital expenditure was approximately **RMB 10.657 million**, a decrease from **RMB 14.036 million** in the prior year Capital Expenditure | Indicator | 2025 H1 (RMB) | 2024 H1 (RMB) | | :--- | :--- | :--- | | Capital expenditure | 10,657,000 | 14,036,000 | [Exchange Rate Risk](index=23&type=section&id=5.6%20Exchange%20Rate%20Risk) The Group's primary business is in China, with transactions mainly in RMB, and most assets and liabilities denominated in RMB; despite the non-convertibility of RMB posing exchange rate risk, the Group believes its exposure to exchange rate fluctuations among HKD, USD, and RMB is not significant and has not engaged in hedging transactions - Primary Business and Transaction Currency: Within mainland China, conducted in **RMB**[60](index=60&type=chunk) - Exchange Rate Risk: RMB is not freely convertible, posing a risk that actions by the Chinese government could affect exchange rates[60](index=60&type=chunk) - Risk Assessment: The Group believes its exposure to exchange rate fluctuations among **HKD**, **USD**, and **RMB** is not significant[60](index=60&type=chunk) - Hedging Strategy: The Group has not entered into any hedging transactions to manage foreign currency fluctuation risks[60](index=60&type=chunk) [Contingent Liabilities, Legal and Potential Proceedings](index=23&type=section&id=5.7%20Contingent%20Liabilities%2C%20Legal%20and%20Potential%20Proceedings) As of June 30, 2025, the Group had no significant contingent liabilities, legal proceedings, or potential proceedings - The Group had no significant contingent liabilities, legal proceedings, or potential proceedings[61](index=61&type=chunk) [Significant Acquisitions and Disposals](index=23&type=section&id=5.8%20Significant%20Acquisitions%20and%20Disposals) For the six months ended June 30, 2025, the Group did not undertake any significant acquisitions or disposals - The Group did not undertake any significant acquisitions or disposals[62](index=62&type=chunk) [Going Concern](index=23&type=section&id=5.9%20Going%20Concern) Based on its current financial position and available financing, the Group has sufficient financial resources to continue operating for the foreseeable future, thus the financial statements are prepared on a going concern basis - The Group has sufficient financial resources to continue operating for the foreseeable future, and the financial statements are prepared on a going concern basis[63](index=63&type=chunk) [Future Development](index=23&type=section&id=5.10%20Future%20Development) The Group will continue to focus on high-value and high-end utilization of bentonite and its associated minerals, develop strategic new products like organic bentonite, water-based bentonite, and inorganic gels, emphasize green and environmentally friendly product development, and target overseas markets such as North America, Europe, and Southeast Asia, driven by profit and innovation to maximize shareholder value - Product Strategy: Continue to focus on transitioning bentonite from traditional low-value, low-end utilization to high-value, high-end utilization, and research and develop bentonite mineral functional materials and related products[64](index=64&type=chunk) - New Product Development: Develop high-solid rheological additives for coatings, high-solid oil-based pesticide suspending agents, bentonite products for deep, ultra-deep, and offshore drilling, and focus on green and environmentally friendly product R&D[65](index=65&type=chunk) - Market Expansion: Focus on developing overseas customer markets in North America, Europe, Southeast Asia, and expanding foreign trade business[65](index=65&type=chunk) - Development Strategy: Adhere to a profit-centric approach, driven by innovation, actively developing new products, and opening new markets[65](index=65&type=chunk) Corporate Governance and Shareholder Information [Human Resources and Training](index=24&type=section&id=6.1%20Human%20Resources%20and%20Training) As of June 30, 2025, the Group had **232** employees with total staff costs of approximately **RMB 17.637 million**, adhering to a "people-oriented" management philosophy and enhancing employee efficiency and performance through strict selection, annual sales guidelines, quarterly marketing strategies, and various incentive mechanisms Number of Employees and Staff Costs | Indicator | 2025-06-30 | 2024 H1 (RMB) | | :--- | :--- | :--- | | Total number of employees | 232 | - | | Total staff costs | 17,637,000 | 16,959,000 | - Management Philosophy: Adhering to a "people-oriented" approach, building a management and development platform[66](index=66&type=chunk) - Performance Management: Annually issuing sales guidelines, formulating quarterly marketing strategies, and implementing various incentive mechanisms to enhance employee work efficiency[66](index=66&type=chunk) [Interests of Directors, Supervisors and Chief Executive](index=25&type=section&id=6.2%20Interests%20of%20Directors%2C%20Supervisors%20and%20Chief%20Executive) As of June 30, 2025, Mr. Zhang Youlian held **50.05%** of the company's shares, Ms. Zhang Jinhua held **1.04%**, and Mr. Xu Qinshi held **0.26%** through his spouse; no other directors, supervisors, or chief executive held disclosable interests in shares or related shares Long Positions of Directors / Supervisors in the Ordinary Shares of the Company | Name of Director / Supervisor | Nature of interest | Number of shares in the Company held | Approximate percentage of issued share capital | | :--- | :--- | :--- | :--- | | Mr. Zhang Youlian | Beneficial owner | 19,220,600 | 50.05% | | Ms. Zhang Jinhua | Beneficial owner | 398,400 | 1.04% | | Mr. Xu Qinshi (i) | Spouse's interest | 100,000 | 0.26% | - Save as disclosed above, no other directors or supervisors and chief executive held any interests or short positions required to be registered or notified to the Stock Exchange[68](index=68&type=chunk) [Interests of Substantial Shareholders and Other Persons](index=26&type=section&id=6.3%20Interests%20of%20Substantial%20Shareholders%20and%20Other%20Persons) As of June 30, 2025, apart from directors, supervisors, and the chief executive, Ms. Yu Hua was the only other person holding **5%** or more interest in the company, with **9.31%** of the shares Long Positions of Substantial Shareholders and Other Persons in Shares | Name of Shareholder | Nature of interest | Total number of shares in the Company held | Approximate percentage of issued share capital | | :--- | :--- | :--- | :--- | | Ms. Yu Hua | Beneficial owner | 3,576,000 | 9.31% | - Save as disclosed above, no other persons held any interests or short positions required to be registered[69](index=69&type=chunk) [Rights of Directors and Supervisors to Acquire Shares or Debentures](index=26&type=section&id=6.4%20Rights%20of%20Directors%20and%20Supervisors%20to%20Acquire%20Shares%20or%20Debentures) During the reporting period, no director, supervisor, or their spouse or minor children were granted or exercised any rights to acquire shares or debentures of the company - During the reporting period, no director or supervisor or their respective spouses or minor children were granted or exercised any rights to acquire shares or debentures of the Company[70](index=70&type=chunk) [Connected Transactions](index=26&type=section&id=6.5%20Connected%20Transactions) During the reporting period, the Group did not enter into any connected transactions or continuing connected transactions requiring disclosure under the GEM Listing Rules - The Group did not enter into any connected transactions or continuing connected transactions requiring disclosure under the GEM Listing Rules[71](index=71&type=chunk) [Interests of Directors, Supervisors and Controlling Shareholders in Competing Businesses and Conflicts of Interest](index=26&type=section&id=6.6%20Interests%20of%20Directors%2C%20Supervisors%20and%20Controlling%20Shareholders%20in%20Competing%20Businesses%20and%20Conflicts%20of%20Interest) During the reporting period, no director, supervisor, controlling shareholder, or their associates engaged in any business competing or likely to compete with the Group's business, or held any interests that would create a conflict of interest with the Group - No director, supervisor, or controlling shareholder or their respective associates engaged in any business competing or likely to compete with the Group's business, or held any interests therein that would create a conflict of interest with the Group[72](index=72&type=chunk) [Public Float](index=27&type=section&id=6.7%20Public%20Float) From the reporting period to the date of this announcement, at least **25%** of the Company's issued share capital was held by public shareholders - At least **25%** of the Company's issued share capital is held by public shareholders[73](index=73&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=27&type=section&id=6.8%20Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[74](index=74&type=chunk) [Capital Commitments](index=27&type=section&id=6.9%20Capital%20Commitments) As of June 30, 2025, the Group's capital commitments were approximately **RMB 1.254 million**, a decrease from **RMB 1.672 million** at the end of 2024 Capital Commitments | Indicator | 2025-06-30 (RMB) | 2024-12-31 (RMB) | | :--- | :--- | :--- | | Capital commitments | 1,254,000 | 1,672,000 | [Dividends](index=27&type=section&id=6.10%20Dividends) The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board of Directors resolved not to declare any interim dividend for the six months ended **June 30, 2025**[76](index=76&type=chunk) [Corporate Governance Practices](index=27&type=section&id=6.11%20Corporate%20Governance%20Practices) The Company is committed to complying with the Corporate Governance Code but has deviations regarding the combined roles of Chairman and Chief Executive and directors' and officers' liability insurance; the Board believes the current structure is beneficial and is considering liability insurance proposals - The Company complies with all applicable provisions of the Corporate Governance Code, but with two deviations[77](index=77&type=chunk) - Deviation from Code Provision C.2.1: The roles of Chairman and Chief Executive are combined and held by **Mr. Zhang Youlian**, which the Board believes provides strong and consistent leadership[77](index=77&type=chunk) - Deviation from Code Provision C.1.8: Directors' and officers' liability insurance covering directors' liabilities arising from legal proceedings was not purchased during the reporting period, as the Board required time to consider the proposal[78](index=78&type=chunk) [Standard Code for Securities Transactions](index=28&type=section&id=6.12%20Standard%20Code%20for%20Securities%20Transactions) The Company has adopted a standard code for securities transactions no less exacting than the GEM Listing Rules, and all directors have confirmed full compliance with the code after inquiry - The Company has adopted a standard code for securities transactions no less exacting than the GEM Listing Rules[79](index=79&type=chunk) - All directors confirmed full compliance with the required dealing standards set out in the Standard Code during the reporting period[79](index=79&type=chunk) [Nomination Committee](index=28&type=section&id=6.13%20Nomination%20Committee) The Company's Nomination Committee was established on March 26, 2014, with its terms of reference revised on June 30, 2025, and comprises Mr. Fan Fang (Executive Director), Mr. Zhang Lei, and Mr. Tang Jingyan (Independent Non-executive Directors), with Mr. Tang serving as Chairman - The Nomination Committee was established on **March 26, 2014**, and its terms of reference were revised on **June 30, 2025**[80](index=80&type=chunk) - Committee Members: **Mr. Fan Fang** (Executive Director), **Mr. Zhang Lei**, and **Mr. Tang Jingyan** (Independent Non-executive Directors)[80](index=80&type=chunk) - Chairman: **Mr. Tang Jingyan**[80](index=80&type=chunk) [Audit Committee](index=28&type=section&id=6.14%20Audit%20Committee) The Company's Audit Committee, established on March 26, 2014, comprises Mr. Zhang Lei (Chairman), Mr. Chen Jianping, and Mr. Tang Jingyan (all Independent Non-executive Directors), with primary duties including reviewing financial reports, internal control effectiveness, external auditor independence, and audit process effectiveness, and has reviewed the interim financial statements - The Audit Committee was established on **March 26, 2014**, and its terms of reference have been set out in compliance with the Corporate Governance Code[81](index=81&type=chunk) - Committee Members: **Mr. Zhang Lei** (Chairman), **Mr. Chen Jianping**, and **Mr. Tang Jingyan** (all Independent Non-executive Directors)[81](index=81&type=chunk) - Primary Responsibilities: Providing independent review and oversight of financial reporting, reviewing the effectiveness of internal controls, ensuring the independence of external auditors, and the effectiveness of the audit process[81](index=81&type=chunk) - The unaudited consolidated financial statements of the Company for the six months ended **June 30, 2025**, have been reviewed[82](index=82&type=chunk) Post-Reporting Period Events and Information Disclosure [Events After the Reporting Period](index=29&type=section&id=7.1%20Events%20After%20the%20Reporting%20Period) As of the date of this announcement, the Group has no significant events after the reporting period - As of the date of this announcement, there are no significant events after the reporting period[83](index=83&type=chunk) [Information Disclosure](index=29&type=section&id=7.2%20Information%20Disclosure) The Company will dispatch the interim report for the six months ended June 30, 2025, to shareholders in due course and will publish it on the company's website and the Stock Exchange's website - The interim report will be dispatched to shareholders and published on the Company's website www.renheng.com and the Stock Exchange's website www.hkexnews.hk[84](index=84&type=chunk)

[Mid-term Results Announcement](index=1&type=section&id=Mid-term%20Results%20Announcement) [Financial Summary](index=1&type=section&id=Financial%20Summary) Unaudited H1 2025 interim results show revenue growth, increased gross profit, and a significantly narrowed loss Financial Summary for the Six Months Ended June 30 | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 181,907 | 173,335 | +4.9% | | Gross Profit | 37,359 | 32,705 | +14.2% | | Gross Margin | 20.5% | 18.9% | +1.6pp | | Loss Before Tax | (21,461) | (37,940) | -43.4% | | Loss for the Period | (21,958) | (37,935) | -42.1% | | Loss for the Period Attributable to Owners of the Company | (19,286) | (32,579) | -40.8% | | Basic Loss Per Share (RMB) | (0.01) | (0.09) | -88.9% | [Condensed Consolidated Statement of Financial Position](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets slightly decreased, with stable non-current assets and improved equity and net current liabilities Key Data from Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 585,165 | 596,131 | -1.8% | | Total Non-current Assets | 462,297 | 460,766 | +0.3% | | Total Current Assets | 122,868 | 135,365 | -9.2% | | Total Equity | 191,642 | 210,252 | -8.8% | | Total Liabilities | 393,523 | 385,879 | +2.0% | | Net Current Liabilities | (109,400) | (118,937) | -8.0% | [Condensed Consolidated Statement of Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) The Group's revenue grew, gross profit improved, losses significantly narrowed, and net finance income turned positive Key Data from Condensed Consolidated Statement of Comprehensive Income | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 181,907 | 173,335 | +4.9% | | Sales and Service Costs | (144,548) | (140,630) | +2.8% | | Gross Profit | 37,359 | 32,705 | +14.2% | | Operating Loss | (23,529) | (28,524) | -17.5% | | Net Finance Income/(Costs) | 2,068 | (9,416) | from negative to positive | | Loss Before Income Tax | (21,461) | (37,940) | -43.4% | | Loss and Total Comprehensive Expense for the Period | (21,958) | (37,935) | -42.1% | | Loss for the Period Attributable to Owners of the Company | (19,286) | (32,579) | -40.8% | [Notes to the Condensed Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [General Information](index=5&type=section&id=General%20Information) China Singularity Guofeng Holdings Limited, registered in the Cayman Islands and listed in Hong Kong, primarily engages in investment holding and operates appliance retail, liquor, and education businesses in China - The company was incorporated in the Cayman Islands on February 5, 2008, and listed on the Hong Kong Stock Exchange from March 25, 2010[6](index=6&type=chunk) - The Group's principal activities include retail and repair services for home appliances, mobile phones, computers, imported and general merchandise; liquor business; and education and training services[7](index=7&type=chunk) - Greatssjy Co., Ltd. is the direct and ultimate holding company, with Mr. Yuan Li as the ultimate controlling party[6](index=6&type=chunk) [Basis of Preparation and Principal Accounting Policies](index=6&type=section&id=Basis%20of%20Preparation%20and%20Principal%20Accounting%20Policies) The condensed consolidated financial statements are prepared under HKAS 34 and Listing Rules, using a going concern basis and historical cost, with no significant impact from the first-time application of revised HKAS 21 - The condensed consolidated 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 Listing Rules of the Stock Exchange[8](index=8&type=chunk) - The revised Hong Kong Financial Reporting Standards (HKAS 21 Amendment "Lack of Exchangeability") were applied for the first time, but had no significant impact on the financial position and performance for the current and prior periods[9](index=9&type=chunk) [Trade Receivables](index=7&type=section&id=Trade%20Receivables) As of June 30, 2025, net trade receivables significantly increased by 152.3% to RMB 21,189 thousands, driven by a rise in receivables within 90 days, alongside an increase in credit loss provisions Trade Receivables Changes | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Gross Trade Receivables | 24,048 | 9,491 | +153.4% | | Provision for Credit Losses | (2,859) | (1,094) | +161.3% | | Net Trade Receivables | 21,189 | 8,397 | +152.3% | - Trade receivables within 90 days increased from **RMB 7,805 thousands** as of December 31, 2024, to **RMB 20,067 thousands** as of June 30, 2025[11](index=11&type=chunk) [Share Capital](index=9&type=section&id=Share%20Capital) As of June 30, 2025, the company's issued and fully paid ordinary shares and total share capital increased due to the issuance of award shares Changes in Issued and Fully Paid Share Capital | Indicator | June 30, 2025 (thousand shares) | December 31, 2024 (thousand shares) | Change | | :--- | :--- | :--- | :--- | | Number of Issued Ordinary Shares | 1,812,055,508 | 1,805,728,508 | +6,327,000 shares | | Equivalent Amount (RMB thousands) | 254,040 | 253,128 | +912 | - On May 27, 2025, **6,327,000 award shares** were issued due to share vesting[12](index=12&type=chunk) [Trade and Bills Payables](index=10&type=section&id=Trade%20and%20Bills%20Payables) As of June 30, 2025, total trade and bills payables slightly increased by 1.9%, with trade payables rising and bills payables decreasing Changes in Trade and Bills Payables | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Trade Payables | 27,991 | 22,714 | +23.2% | | Bills Payables | 6,200 | 10,850 | -42.8% | | Total | 34,191 | 33,564 | +1.9% | - Most major suppliers have credit terms ranging from **15 to 60 days**[13](index=13&type=chunk) [Borrowings](index=11&type=section&id=Borrowings) As of June 30, 2025, total Group borrowings increased to RMB 129,817 thousands, primarily driven by an increase in non-current borrowings, including unsecured loans from shareholders, former shareholders, and other third parties, with interest rates between 3% and 5.5% Borrowings Total Changes | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current Borrowings | 129,817 | 100,287 | +29.4% | | Current Borrowings | — | 9,479 | -100% | | Total Borrowings | 129,817 | 109,766 | +18.3% | - All borrowings are unsecured, with fixed interest rates ranging from **3.0% to 5.5%**[18](index=18&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk) [Loans from Shareholders](index=12&type=section&id=Loans%20from%20Shareholders) As of June 30, 2025, shareholder loans from Shengxing International totaled approximately RMB 72,956 thousands in principal and RMB 12,388 thousands in interest, bearing an annual interest rate of 4.5% and due on May 23, 2027 Shengxing International Loan Changes | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Shengxing International Group Limited | 85,344 | 85,010 | - As of June 30, 2025, borrowings from Shengxing International totaled approximately **RMB 72,956 thousands** in principal and **RMB 12,388 thousands** in interest, bearing an annual interest rate of **4.5%** and repayable on May 23, 2027[18](index=18&type=chunk) [Loans from Former Shareholders](index=14&type=section&id=Loans%20from%20Former%20Shareholders) As of June 30, 2025, borrowings from Chongqing Shengsheng increased to RMB 18,705 thousands, bearing annual interest rates of 3% to 3.5% with various maturity dates Chongqing Shengsheng Loan Changes | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Chongqing Shengsheng | 18,705 | 3,219 | +481.0% | - The borrowings are unsecured, bear annual interest rates of **3% to 3.5%**, and mature between November 2027 and April 2028[19](index=19&type=chunk) [Other Borrowings](index=14&type=section&id=Other%20Borrowings) Total other borrowings increased to RMB 25,768 thousands, including loans from independent third party Mr. Wu Jipeng (extended to 2028), Guangdong Shengrong (extended to 2027), and related party Mr. Yuan Yang Other Borrowings Changes | Borrower | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Independent Third-Party Loans | 20,646 | 20,566 | +0.4% | | Related Party (Mr. Yuan Yang) | 5,122 | 971 | +427.5% | | Total | 25,768 | 21,537 | +19.6% | - The loan from Mr. Wu Jipeng was extended on February 14, 2025, to December 31, 2028, bearing an annual interest rate of **5.5%**[20](index=20&type=chunk) - The repayment date for interest and amortized cost of Guangdong Shengrong's loan was extended to November 26, 2027[20](index=20&type=chunk) - Borrowings from Mr. Yuan Yang (brother of ultimate controlling party Mr. Yuan Li) bear an annual interest rate of **4%** and mature between October 2027 and February 2028[20](index=20&type=chunk) [Revenue and Segment Information](index=16&type=section&id=Revenue%20and%20Segment%20Information) The Group's revenue primarily comes from home appliance sales, liquor sales, and education services, with education revenue significantly growing, home appliance revenue stable, and liquor revenue declining - Revenue represents the fair value of consideration received or receivable from the sale of goods and provision of education and training services, net of discounts and sales-related taxes[21](index=21&type=chunk) - The Group's reportable and operating segments include home appliance business, liquor business, and education business[24](index=24&type=chunk) [Revenue Classification](index=16&type=section&id=Revenue%20Classification) As of June 30, 2025, total revenue increased by 4.9% year-on-year, with education services revenue surging by 119.3%, home appliance sales growing by 5.1%, and liquor sales declining by 52.6% Revenue by Type of Goods and Services | Type of Goods and Services | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Home Appliance Sales | 124,049 | 118,492 | +5.1% | | Liquor Sales | 17,215 | 36,308 | -52.6% | | Provision of Education Services | 40,643 | 18,535 | +119.3% | | **Total Revenue** | **181,907** | **173,335** | **+4.9%** | - Revenue recognized at a point in time was **RMB 141,264 thousands**, and revenue recognized over a period of time was **RMB 40,643 thousands**[23](index=23&type=chunk) [Segment Performance Analysis](index=18&type=section&id=Segment%20Performance%20Analysis) For the six months ended June 30, 2025, all home appliance, liquor, and education segments recorded operating losses, with education having the largest loss, and home appliance and liquor segments turning from profit to loss year-on-year Segment Performance Analysis | Segment | 2025 Segment Performance (RMB thousands) | 2024 Segment Performance (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Home Appliance Business | (3,726) | 11,472 | from profit to loss | | Liquor Business | (3,324) | 2,902 | from profit to loss | | Education Business | (8,227) | (17,775) | loss narrowed | | **Total** | **(15,277)** | **(3,401)** | **loss widened** | - In the first half of 2025, loss before income tax was **RMB (21,461) thousands**, significantly narrowing from **RMB (37,940) thousands** in the same period of 2024[26](index=26&type=chunk)[27](index=27&type=chunk) [Segment Assets and Liabilities](index=19&type=section&id=Segment%20Assets%20and%20Liabilities) As of June 30, 2025, the education business held the largest segment assets, while the home appliance business had the largest segment liabilities Segment Assets and Liabilities (June 30, 2025) | Segment | Segment Assets (RMB thousands) | Segment Liabilities (RMB thousands) | | :--- | :--- | :--- | | Home Appliance Business | 116,635 | 134,063 | | Liquor Business | 19,693 | 18,683 | | Education Business | 447,644 | 90,337 | | **Total** | **583,972** | **243,083** | - As of June 30, 2025, total assets were **RMB 585,165 thousands**, and total liabilities were **RMB 393,523 thousands**[28](index=28&type=chunk) [Other Income](index=20&type=section&id=Other%20Income) For the six months ended June 30, 2025, other income significantly decreased by 96.7% to RMB 135 thousands, mainly due to reduced rental income from investment properties and other income Other Income Changes | Category | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Rental Income from Investment Properties | — | 1,155 | -100% | | Event Income | 51 | 247 | -79.4% | | Others | 84 | 2,709 | -96.9% | | **Total** | **135** | **4,111** | **-96.7%** | [Other Net Gains and Losses](index=20&type=section&id=Other%20Net%20Gains%20and%20Losses) For the six months ended June 30, 2025, the Group recorded other net gains of RMB 177 thousands, compared to a net loss of RMB 3.1 millions in the prior year, primarily due to the reversal of inventory write-downs Other Net Gains and Losses Changes | Category | 2025 (RMB thousands) | 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Reversal/(Write-down) of Inventory | 454 | (53) | from loss to profit | | Loss on Disposal of Subsidiaries | — | (3,313) | loss eliminated | | **Total** | **177** | **(3,136)** | **from loss to profit** | [Deductions from Loss Before Income Tax](index=21&type=section&id=Deductions%20from%20Loss%20Before%20Income%20Tax) For the six months ended June 30, 2025, sales and service costs, employee benefit expenses, and depreciation of right-of-use assets increased, while depreciation of property, plant, and equipment and investment properties decreased Major Deduction Items Changes | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Sales and Service Costs | 144,548 | 140,630 | +2.8% | | Employee Benefit Expenses | 22,800 | 21,163 | +7.7% | | Depreciation of Right-of-Use Assets | 3,576 | 2,592 | +37.9% | | Depreciation of Property, Plant and Equipment | 391 | 838 | -53.3% | | Depreciation of Investment Properties | — | 792 | -100% | [Net Finance Income/(Costs)](index=21&type=section&id=Net%20Finance%20Income%2F%28Costs%29) For the six months ended June 30, 2025, the Group recorded net finance income of RMB 2.1 millions, compared to net finance costs of RMB 9.4 millions in the prior year, mainly due to increased foreign exchange gains on borrowings and interest income from loans receivable Net Finance Income/(Costs) Changes | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Interest on Other Borrowings | 2,107 | 7,347 | -71.3% | | Foreign Exchange (Gain)/Loss on Borrowings | (1,525) | 1,778 | from loss to gain | | Interest on Lease Liabilities | 403 | 583 | -30.9% | | Interest Income from Bank Deposits | (148) | (292) | -49.3% | | Interest Income from Loans Receivable | (2,905) | — | new income | | **Net Finance Income/(Costs)** | **(2,068)** | **9,416** | **from cost to income** | [Income Tax Expense/(Credit)](index=22&type=section&id=Income%20Tax%20Expense%2F%28Credit%29) For the six months ended June 30, 2025, the Group recorded an income tax expense of RMB 497 thousands, compared to an income tax credit of RMB 5 thousands in the prior year, primarily due to insufficient prior year provision for China corporate income tax Income Tax Expense/(Credit) Changes | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | China Corporate Income Tax | 573 | (5) | from credit to expense | | Deferred Tax – Current Year | (76) | — | new credit | | **Income Tax Expense/(Credit)** | **497** | **(5)** | **from credit to expense** | - The statutory tax rate for Chinese subsidiaries is **25%**, but Beijing Shengsheng Chuangye Technology Co., Ltd. is subject to a **15%** corporate income tax rate due to its high-tech enterprise certificate[38](index=38&type=chunk) [Basic and Diluted Loss Per Share](index=23&type=section&id=Basic%20and%20Diluted%20Loss%20Per%20Share) For the six months ended June 30, 2025, basic loss per share significantly narrowed to RMB 0.01, mainly due to reduced loss attributable to owners of the company and an increased weighted average number of ordinary shares outstanding Basic Loss Per Share Changes | Indicator | 2025 (RMB) | 2024 (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Loss Attributable to Owners of the Company (thousands) | (19,286) | (32,579) | -40.8% | | Weighted Average Number of Ordinary Shares Outstanding (thousand shares) | 1,806,952 | 370,690 | +387.5% | | **Basic Loss Per Share** | **(0.01)** | **(0.09)** | **-88.9%** | - For the six months ended June 30, 2025 and 2024, diluted loss per share was the same as basic loss per share, as there were no potential dilutive ordinary shares[41](index=41&type=chunk) [Interim Dividend](index=23&type=section&id=Interim%20Dividend) For the six months ended June 30, 2025, the Board of Directors did not recommend the payment of any interim dividend - For the six months ended June 30, 2025, the company did not declare or propose any interim dividend[42](index=42&type=chunk) [Management Discussion and Analysis](index=24&type=section&id=Management%20Discussion%20and%20Analysis) [Market Review](index=24&type=section&id=Market%20Review) In H1 2025, China's economy demonstrated resilience amid complex conditions, with GDP growing by 5.3%, driven by coordinated macro policies, strong infrastructure and manufacturing investment, steady consumption recovery, and better-than-expected foreign trade exports - China's GDP reached **RMB 66.05 trillion** in H1 2025, a year-on-year increase of **5.3%**[43](index=43&type=chunk) - Infrastructure investment (excluding real estate) grew by **6.6%**, and manufacturing investment increased by **7.5%** year-on-year[43](index=43&type=chunk) - Total retail sales of consumer goods reached **RMB 24.55 trillion**, growing by **5%**[43](index=43&type=chunk) [Business Review and Operating Performance](index=24&type=section&id=Business%20Review%20and%20Operating%20Performance) The diversified Group continues to optimize operations in liquor, training, and home appliance businesses, strategically contracting inefficient liquor channels, innovating in training, and focusing on smart and high-end home appliances - The Group is committed to enhancing overall operational efficiency and core competitiveness, continuously advancing its liquor, training, and home appliance retail businesses[44](index=44&type=chunk) [Liquor Business](index=24&type=section&id=Liquor%20Business) Facing deep industry adjustments, liquor business revenue declined by 52.6% year-on-year, as the Group strategically optimized its structure, exited inefficient distributors, focused on high-margin products, and built a three-dimensional distribution network and OMO ecosystem through the "Shengyouhui" platform Liquor Business Revenue Changes | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Liquor Sales Revenue | 17,215 | 36,308 | -52.6% | - Strategic contraction of inefficient channels, focusing on high-quality, affordable sauce-flavor liquor, resulting in short-term loss of mass market sales but improving long-term customer quality[45](index=45&type=chunk) - Innovatively built a "three-dimensional distribution network" system (Shengyouhui partners, special distributors, regional distributors), deepened online-offline integration (OMO) ecological collaborative operations, and integrated parent company student resources to create a "education-community-liquor" business closed loop[47](index=47&type=chunk) - Ren Shen Guofeng Winery, a subsidiary, specializes in high-end and custom-sealed Shengjiu products, with the Shengjiu brand recognized as a "Top Ten Influential Brand of 2025"[48](index=48&type=chunk) [Training Business](index=27&type=section&id=Training%20Business) Despite challenges in the financial education sector, the Group's training business achieved revenue of RMB 40.64 millions, a significant 119.3% year-on-year increase, by integrating online and offline models, collaborating with governments, and developing a smart assessment system with Maifushi Training Business Revenue Changes | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Training Revenue | 40,643 | 18,535 | +119.3% | - Integrated "online knowledge payment + offline practical sandbox" model, utilizing the Jiowei Wealth curriculum system and Shengsheng Engine SaaS tools, now covering over **180,000 corporate students**[50](index=50&type=chunk) - Actively collaborated with various local governments to conduct "SME Digital Transformation Matching Activities," increasing market penetration in third and fourth-tier cities[50](index=50&type=chunk) - Jointly developed a smart assessment system with Maifushi (02556.HK), significantly improving the conversion rate of customized courses through precise analysis of corporate financial data and deep diagnosis of pain points[50](index=50&type=chunk) [Home Appliance Business](index=28&type=section&id=Home%20Appliance%20Business) Benefiting from national "trade-in" policies, home appliance business achieved total revenue of RMB 124 millions, a 5.1% year-on-year increase, by focusing on high-end, smart, and green development, upgrading technology, and expanding market coverage through regional KOLs and omni-channel upgrades Home Appliance Business Revenue Changes | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total Home Appliance Revenue | 124,049 | 118,492 | +5.1% | - National "expanded trade-in" policy drives structural growth, with the central government allocating **RMB 81 billion** in special funds, for the first time including digital products like mobile phones and tablets in the subsidy scope[51](index=51&type=chunk) - Significant achievements in high-end traditional home appliances, with technology upgrades driving an **18% increase** in average transaction value[52](index=52&type=chunk) - Mobile phone ecosystem leverages national subsidies to focus on high-end Apple/Huawei models, with subsidiary Xinhuiyin expanding regional coverage through regional KOL fission model, achieving a monthly compound growth rate of **67.3%**[52](index=52&type=chunk) [Financial Review](index=29&type=section&id=Financial%20Review) The Group's overall financial performance improved, with revenue and gross profit growth, significantly narrowed operating and pre-tax losses, and improved net current liabilities, though total borrowings increased and the gearing ratio slightly rose - For the six months ended June 30, 2025, the Group's revenue, gross profit, operating loss, loss before income tax, and loss attributable to owners of the company all showed significant improvement[53](index=53&type=chunk)[56](index=56&type=chunk)[61](index=61&type=chunk)[63](index=63&type=chunk)[65](index=65&type=chunk) [Revenue](index=29&type=section&id=Revenue) For the six months ended June 30, 2025, the Group's revenue was approximately RMB 181.9 millions, a 4.9% increase from the prior year Revenue Changes | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 181.9 | 173.3 | +4.9% | [Cost of Sales](index=29&type=section&id=Cost%20of%20Sales) For the six months ended June 30, 2025, cost of sales was approximately RMB 144.5 millions, a 2.8% increase from the prior year, primarily due to increased sales volume Cost of Sales Changes | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Cost of Sales | 144.5 | 140.6 | +2.8% | [Gross Profit](index=29&type=section&id=Gross%20Profit) For the six months ended June 30, 2025, gross profit was approximately RMB 37.4 millions, a 14.2% increase from the prior year Gross Profit Changes | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 37.4 | 32.7 | +14.2% | [Other Income](index=30&type=section&id=Other%20Income) For the six months ended June 30, 2025, other income significantly decreased by 96.7% to RMB 135 thousands Other Income Changes | Indicator | 2025 (RMB thousands) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Other Income | 135 | 4.1 | -96.7% | [Other Net Gains and Losses](index=30&type=section&id=Other%20Net%20Gains%20and%20Losses) For the six months ended June 30, 2025, other net gains of RMB 177 thousands were recorded, compared to a net loss of RMB 3.1 millions in the prior year Other Net Gains and Losses Changes | Indicator | 2025 (RMB thousands) | 2024 (RMB millions) | Change | | :--- | :--- | :--- | :--- | | Other Net Gains and Losses | 177 | (3.1) | from loss to profit | [Selling and Marketing Expenses](index=30&type=section&id=Selling%20and%20Marketing%20Expenses) For the six months ended June 30, 2025, selling and marketing expenses decreased by 25.8% to RMB 30.8 millions Selling and Marketing Expenses Changes | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Selling and Marketing Expenses | 30.8 | 41.5 | -25.8% | [Administrative Expenses](index=30&type=section&id=Administrative%20Expenses) For the six months ended June 30, 2025, administrative expenses increased by 38.8% to RMB 30.0 millions Administrative Expenses Changes | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 30.0 | 21.6 | +38.8% | [Operating Loss](index=30&type=section&id=Operating%20Loss) For the six months ended June 30, 2025, operating loss decreased by 17.5% to RMB 23.5 millions Operating Loss Changes | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Loss | (23.5) | (28.5) | -17.5% | [Net Finance Income/(Costs)](index=31&type=section&id=Net%20Finance%20Income%2F%28Costs%29) For the six months ended June 30, 2025, net finance income of RMB 2.1 millions was recorded, compared to net finance costs of RMB 9.4 millions in the prior year Net Finance Income/(Costs) Changes | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change | | :--- | :--- | :--- | :--- | | Net Finance Income/(Costs) | 2.1 | (9.4) | from cost to income | [Loss Before Income Tax](index=31&type=section&id=Loss%20Before%20Income%20Tax) For the six months ended June 30, 2025, loss before income tax decreased by 43.4% to RMB 21.5 millions Loss Before Income Tax Changes | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Loss Before Income Tax | (21.5) | (37.9) | -43.4% | [Income Tax (Expense)/Credit](index=31&type=section&id=Income%20Tax%20%28Expense%29%2FCredit) For the six months ended June 30, 2025, an income tax expense of RMB 497 thousands was recorded, compared to an income tax credit of RMB 5 thousands in the prior year Income Tax (Expense)/Credit Changes | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Income Tax (Expense)/Credit | 497 | (5) | from credit to expense | [Loss Attributable to Owners of the Company](index=31&type=section&id=Loss%20Attributable%20to%20Owners%20of%20the%20Company) For the six months ended June 30, 2025, loss attributable to owners of the company decreased by 40.8% to RMB 19.3 millions Loss Attributable to Owners of the Company Changes | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Loss Attributable to Owners of the Company | (19.3) | (32.6) | -40.8% | [Cash and Cash Equivalents](index=31&type=section&id=Cash%20and%20Cash%20Equivalents) As of June 30, 2025, cash and cash equivalents decreased by 9.7% to RMB 25.0 millions Cash and Cash Equivalents Changes | Indicator | June 30, 2025 (RMB millions) | December 31, 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 25.0 | 27.7 | -9.7% | [Inventories](index=32&type=section&id=Inventories) As of June 30, 2025, inventories increased by 9.6% to RMB 49.2 millions Inventories Changes | Indicator | June 30, 2025 (RMB millions) | December 31, 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Inventories | 49.2 | 44.9 | +9.6% | [Prepayments, Deposits and Other Receivables](index=32&type=section&id=Prepayments%2C%20Deposits%20and%20Other%20Receivables) As of June 30, 2025, prepayments, deposits, and other receivables decreased by 51.1% to RMB 21.3 millions Prepayments, Deposits and Other Receivables Changes | Indicator | June 30, 2025 (RMB millions) | December 31, 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Prepayments, Deposits and Other Receivables | 21.3 | 43.6 | -51.1% | [Trade and Bills Receivables](index=32&type=section&id=Trade%20and%20Bills%20Receivables) As of June 30, 2025, trade and bills receivables increased by 152.3% to RMB 21.2 millions Trade and Bills Receivables Changes | Indicator | June 30, 2025 (RMB millions) | December 31, 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Trade and Bills Receivables | 21.2 | 8.4 | +152.3% | [Trade and Bills Payables](index=32&type=section&id=Trade%20and%20Bills%20Payables) As of June 30, 2025, trade and bills payables increased by 1.9% to RMB 34.2 millions Trade and Bills Payables Changes | Indicator | June 30, 2025 (RMB millions) | December 31, 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Trade and Bills Payables | 34.2 | 33.6 | +1.9% | [Gearing Ratio](index=32&type=section&id=Gearing%20Ratio) As of June 30, 2025, the gearing ratio was 67.2%, an increase from 64.7% as of December 31, 2024 Gearing Ratio Changes | Indicator | June 30, 2025 | December 31, 2024 | Change (pp) | | :--- | :--- | :--- | :--- | | Gearing Ratio | 67.2% | 64.7% | +2.5pp | [Liquidity, Financial Resources and Capital](index=33&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital) As of June 30, 2025, the Group's cash and cash equivalents decreased, net current liabilities improved, but interest-bearing borrowings increased, primarily denominated in RMB and HKD, with fixed interest rates between 3.0% and 5.5% Liquidity Status | Indicator | June 30, 2025 (RMB millions) | December 31, 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 25.0 | 27.7 | -9.7% | | Net Current Liabilities | (109.4) | (119.0) | -8.1% | | Interest-Bearing Borrowings | 129.8 | 109.8 | +18.2% | - Interest-bearing borrowings are denominated in RMB and HKD, with fixed interest rates ranging from **3.0% to 5.5%**[72](index=72&type=chunk) [Foreign Currency and Treasury Policy](index=33&type=section&id=Foreign%20Currency%20and%20Treasury%20Policy) The Group's revenue and most expenses are denominated in RMB, with no forward contracts currently in place to hedge foreign exchange risk, though the Board closely monitors and may consider adopting a hedging policy in the future - All of the Group's revenue and most expenses are denominated in **RMB**[73](index=73&type=chunk) - For the six months ended June 30, 2025, the Group had not entered into any forward contracts to hedge foreign exchange risk, nor did it have a foreign currency hedging policy[73](index=73&type=chunk) [Litigation](index=34&type=section&id=Litigation) The Group is involved in two significant lawsuits, including Nanjing Haihuitong's attempt to revoke the equity transfer of Anhui Sihai and a final judgment against Huainan Jianle Investment, which may lead to the disposal of Anhui Sihai's equity, though directors believe no material adverse impact will occur - Involved in a lawsuit filed by Nanjing Haihuitong Supply Chain Services Co., Ltd., seeking to revoke the gratuitous transfer of **65% equity** in Anhui Sihai Huiyin Home Appliance Sales Co., Ltd. by Yangzhou Laitai Commercial Group Co., Ltd[74](index=74&type=chunk) - The judgment in the lawsuit involving Huainan Jianle Investment Co., Ltd. has become effective, potentially leading to the disposal of Anhui Sihai's equity[74](index=74&type=chunk) - The directors believe that the related lawsuits will not have a material adverse impact on the Group[74](index=74&type=chunk) [Employment and Remuneration Policy](index=34&type=section&id=Employment%20and%20Remuneration%20Policy) The Group's remuneration policy is comparable to industry peers, with management receiving base salaries and discretionary performance bonuses, other employees receiving base salaries and monthly performance bonuses, and all employees participating in social security schemes - Remuneration policy is comparable to industry peers, with management receiving fixed base salaries and discretionary performance bonuses after assessment[76](index=76&type=chunk) - The Group participates in various social security schemes for its employees[76](index=76&type=chunk) [Human Resources](index=35&type=section&id=Human%20Resources) As of June 30, 2025, the Group had 279 employees, a 1.41% decrease from December 31, 2024 Employee Count Changes | Indicator | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Employee Count | 279 | 283 | -1.41% | [Significant Investments](index=35&type=section&id=Significant%20Investments) As of June 30, 2025, the Group held no significant investments whose fair value exceeded 5% of total assets - As of June 30, 2025, the Group held no significant investments whose fair value exceeded **5%** of the Group's total assets[78](index=78&type=chunk) [Future Material Investments and Capital Asset Plans](index=35&type=section&id=Future%20Material%20Investments%20and%20Capital%20Asset%20Plans) As of June 30, 2025, the Group had no identified and legally binding contracts for future material investments and capital asset plans for the coming year - As of June 30, 2025, the Group had no identified and legally binding contracts for future material investments and capital asset plans for the coming year[79](index=79&type=chunk) [Future Outlook](index=35&type=section&id=Future%20Outlook) [Macroeconomic Outlook](index=35&type=section&id=Macroeconomic%20Outlook) In H2 2025, China's economy is expected to continue its moderate recovery, achieving steady progress, with full-year GDP growth projected to reach around 5%, as policies maintain strategic focus and provide timely support - China's economy is expected to continue its moderate recovery in H2 2025, achieving steady progress[80](index=80&type=chunk) - Full-year GDP growth for 2025 is projected to reach around **5%**, largely meeting the preset target of approximately **5.1%**[80](index=80&type=chunk) [Liquor Business Outlook](index=36&type=section&id=Liquor%20Business%20Outlook) The liquor business will focus on "strengthening foundations, restructuring, and innovating" by upgrading advertising strategies, expanding channels, leveraging top think tanks, and empowering the entire chain with AI technology to deepen industry positioning and reshape the intelligent brewing value system - The liquor business will adopt "strengthening foundations, restructuring, and innovating" as its strategic core, focusing on deep cultivation of production areas, digital transformation of channels, product innovation breakthroughs, and cultural marketing upgrades[81](index=81&type=chunk) - Advertising strategies will upgrade from "broad coverage" to "precise targeting," forming a dual-track system of precise penetration of high-end customer groups and deep coverage of experiential scenarios in sinking markets[81](index=81&type=chunk) - Channel expansion will involve regional fission, achieving deep penetration into consumer hinterlands through an "OMO new retail model + experience centers + pre-warehouses"[82](index=82&type=chunk) - AI technology will be integrated across the entire value chain, migrating Maifushi's Tforce large model to brewing to improve premium liquor yield and blending consistency, and using AI to analyze private domain user behavior data for personalized tasting videos and custom liquor recommendations[83](index=83&type=chunk) [Home Appliance Business Outlook](index=37&type=section&id=Home%20Appliance%20Business%20Outlook) The home appliance business will capitalize on peak consumption season opportunities, focusing on high-end, smart, and green development through product structure optimization, policy benefit conversion, niche market exploration, and service chain upgrades to build a resilient supply chain matrix and achieve robust growth - The industry is undergoing channel transformation (Douyin interest e-commerce, Xiaohongshu content marketing, integration of offline channels with home scenarios) and policy-driven growth (the fourth round of **RMB 69 billion** consumer product trade-in subsidies for 2025 will be disbursed in October)[84](index=84&type=chunk) - The Group will precisely position itself for consumption upgrades, increasing the proportion of high-end smart home appliances, deeply exploring Gen Z's demand for "aesthetic justice" and "lazy tech," and the elderly's preference for health functions, to optimize the product matrix and improve gross margins[85](index=85&type=chunk) - Deep conversion of policy benefits, closely following the "trade-in" expansion policy, adjusting product strategy to focus on high-efficiency and smart categories[85](index=85&type=chunk) - Full-cycle service chain upgrade, creating a closed-loop solution for "selection-installation-old appliance recycling"[85](index=85&type=chunk) [Training Business Outlook](index=38&type=section&id=Training%20Business%20Outlook) The training business will seize opportunities in the financial education market, advance AI technology migration and blockchain applications to create a dedicated financial AI assistant, and deepen ecological synergy and regional penetration by replicating the Shengyouhui private domain operation model to expand market share - The financial education market is expected to exceed **RMB 100 billion** in 2025, with increased vitality in the private economy and intergenerational transitions in SMEs generating significant demand for high-end customized courses[86](index=86&type=chunk) - Advance AI technology migration and blockchain applications, transferring vertical large model capabilities from the liquor business to training scenarios to create a dedicated financial AI assistant[87](index=87&type=chunk) - Introduce blockchain technology to build a verifiable credit archive for the entire chain of corporate learning, practice, and financing, enhancing service credibility[87](index=87&type=chunk) - Deepen ecological synergy and regional penetration, replicating the successful Shengyouhui private domain operation model, promoting high-net-worth liquor customers to the financial education curriculum, and leveraging **280 regional centers** to radiate into third and fourth-tier city markets[87](index=87&type=chunk) [AI Strategy](index=39&type=section&id=AI%20Strategy) The Group actively explores establishing AI as a strategic emerging business segment, planning to offer data intelligence services and e-commerce operation management solutions externally, and collaborating with Maifushi to develop vertical industry AI models for internal business scenarios, aiming to make AI a technology-driven growth engine - The Group actively explores establishing Artificial Intelligence (AI) as a strategic new business segment[88](index=88&type=chunk) - Plans to externally provide data intelligence services and e-commerce operation management solutions, including user behavior analysis, AI content generation, and precise matching algorithms[88](index=88&type=chunk) - Collaborates with Maifushi to explore and develop vertical industry AI models for internal business scenarios (liquor brewing, home appliance marketing, training diagnostics), such as an intelligent brewing monitoring system for liquor[88](index=88&type=chunk) - The AI business aims to form a synergistic cycle with the three main businesses, feeding back to improve internal operational efficiency and opening up independent profit growth points by outputting standardized technical products externally[89](index=89&type=chunk) [Overall Strategy and Synergy](index=40&type=section&id=Overall%20Strategy%20and%20Synergy) The Group will seize China's economic development opportunities, using liquor as a foundation for channel expansion and intelligent brewing, home appliances as an engine for policy benefits, training as a link for OMO and regional integration, and actively exploring AI commercialization to achieve synergistic innovation and long-term value growth across its four business segments - Seize the opportunities of China's stable and improving economic development, deepening channel fission and intelligent brewing upgrades with the liquor business as its foundation[89](index=89&type=chunk) - Drive with the home appliance business, capitalizing on policy benefits to optimize supply chain resilience[89](index=89&type=chunk) - Accelerate OMO ecosystem and regional penetration integration with the training business as a link[89](index=89&type=chunk) - Actively explore strategic applications and commercialization paths for AI technology, continuously forging core competitiveness through synergistic innovation and resource cross-pollination across the four business segments[89](index=89&type=chunk) [Other Information](index=40&type=section&id=Other%20Information) [Compliance with the Corporate Governance Code](index=40&type=section&id=Compliance%20with%20the%20Corporate%20Governance%20Code) For the six months ended June 30, 2025, the company generally complied with the Corporate Governance Code, with the only exception being Chairman Mr. Yuan Li's absence from the AGM due to other business commitments, with Executive Director Mr. Zhuang Liangbao serving as chairman - The company generally complied with the code provisions of the Corporate Governance Code during the reporting period and up to the date of this announcement[90](index=90&type=chunk) - Chairman Mr. Yuan Li did not attend the Annual General Meeting due to other business commitments, with Executive Director Mr. Zhuang Liangbao serving as chairman, which was the only instance of non-compliance with code provision F.1.3[90](index=90&type=chunk) [Audit Committee](index=41&type=section&id=Audit%20Committee) For the six months ended June 30, 2025, the Audit Committee, comprising three independent non-executive directors, met Listing Rules requirements and reviewed the Group's accounting principles, internal controls, and interim results - The Audit Committee comprises three independent non-executive directors, including one with professional qualifications or relevant financial management expertise, in compliance with the Listing Rules[91](index=91&type=chunk) - The Audit Committee's primary responsibilities include reviewing financial information and reporting procedures, internal control procedures, and risk management systems, and it has reviewed the unaudited interim results for the six months ended June 30, 2025[91](index=91&type=chunk) [Sufficiency of Public Float](index=41&type=section&id=Sufficiency%20of%20Public%20Float) For the six months ended June 30, 2025, and up to the date of this announcement, the company consistently maintained a sufficient public float - For the entire period of the six months ended June 30, 2025, and up to the date of this announcement, the company consistently maintained a sufficient public float[92](index=92&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=41&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) For the six months ended June 30, 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities, and there were no treasury shares - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[93](index=93&type=chunk) - As of June 30, 2025, the company held no treasury shares[93](index=93&type=chunk) [Significant Events After Reporting Period](index=42&type=section&id=Significant%20Events%20After%20Reporting%20Period) On July 10, 2025, the Group entered into a letter of intent with an independent third party to acquire 100% equity in a Chinese AI technology company specializing in interest e-commerce AI empowerment services, aiming to provide AI technical support for the Group's liquor and education and training segments - On July 10, 2025, the Group entered into a non-legally binding letter of intent with an independent third party to acquire **100% equity** in a Chinese AI technology company specializing in AI empowerment services for interest e-commerce[94](index=94&type=chunk) - This acquisition aims to provide AI technical support for the Group's liquor and education and training segments[94](index=94&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=42&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) The company's 2025 interim report will be dispatched to shareholders (upon request) and published on the HKEXnews website and the company's website in due course - The 2025 interim report will be dispatched to shareholders (upon request) and published on the HKEXnews website (www.hkexnews.hk) and the company's website (www.qidianguofeng.cn) in due course[95](index=95&type=chunk) [By Order of the Board](index=42&type=section&id=By%20Order%20of%20the%20Board) This announcement was signed and released by Board Chairman Mr. Yuan Li on August 29, 2025, with the Board comprising four executive directors, one non-executive director, and three independent non-executive directors - This announcement was signed and released by Board Chairman Mr. Yuan Li on August 29, 2025[96](index=96&type=chunk) - The Board comprises four executive directors (Yuan Li, Sun Yue, Yuan Lijun, Zhuang Liangbao), one non-executive director (Wang Xianfu), and three independent non-executive directors (Zhang Yihua, Chen Rui, Deng Zhongjun)[96](index=96&type=chunk)

香港交易及結算所有限公司和香港聯合交易所有限公司對本公佈的內容概不 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 佈 全 部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 POWERLONG REAL ESTATE HOLDINGS LIMITED 寶龍地產控股有限公司 （於 開 曼 群 島 註 冊 成 立 之 有 限 責 任 公 司） （股 份 代 號：1238） 截 至2025年6月30日止六個月中期業績公佈 業績摘要 截 至2025年6月30日止六個月 – 1 – • 合約銷售額約為人民幣3,723百 萬 元，合 約 銷 售 面 積 約 為316,718平 方 米； • 收入約為人民幣13,251百 萬 元，較2024年同期下降約15.3%； • 租金收入及提供商業運營服務及住宅物業管理服務收入約為人民幣2,144 百 萬 元，較2024年同期下降約1.4%； • 毛利率上升約2.4個百分點至約15.3%。 寶龍地產控股有限公司（「本公司」或「寶 龍」）董 事（「董 事」）會（「董事會」）欣然公佈 本公司及其附 ...

香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 告 的 內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 告 全 部 或 任 何 部 份 內 容 而 產 生 或 因 倚 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 BHCC HOLDING LIMITED （於開曼群島註冊成立的有限公司） （股份代號：1552） 截 至2025年6月30日 止 六 個 月 之 中 期 業 績 公 告 BHCC Holding Limited（「本 公 司」）董 事 會（「董 事 會」）謹 此 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（「本 期 間」）的 未 經 審 核 綜 合 業 績，連 同2024年 同 期（「前 期 間」）的 比 較 數 字。簡 明 綜 合 中 期 財 務 報 表 未 經 審 核，惟 已 經 由 本 公 司 審 核 委 員 會（「審 核 委 員 會」）審 閱。 – ...

[Summary](index=1&type=section&id=Summary) Agile Group reported RMB 13.574 billion in revenue and a RMB 8.030 billion loss attributable to owners for the first half of 2025, with presales reaching RMB 5.17 billion and total borrowings decreasing by RMB 1.475 billion [Financial Summary](index=1&type=section&id=Financial%20Summary) Agile Group reported RMB 13.574 billion in revenue and a RMB 8.030 billion loss attributable to owners for the first half of 2025 Key Financial Indicators for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Revenue | 13,574 | 21,137 | | Gross Loss | (919) | (1,870) | | Loss for the Period | (7,387) | (8,900) | | Loss Attributable to Owners of the Company | (8,030) | (9,674) | | Basic Loss Per Share (RMB Yuan) | (1.591) | (1.917) | [Business Summary](index=2&type=section&id=Business%20Summary) The Group's presales reached RMB 5.17 billion, with a 29.62 million sq.m. land bank, and total borrowings decreased by RMB 1.475 billion - The Group's presales amounted to **RMB 5.17 billion**, corresponding to a cumulative presales GFA of **552,000 sq.m.**, with an average presales price of **RMB 9,363 per sq.m.**[5](index=5&type=chunk) - As of June 30, 2025, the Group held a land bank with an estimated total GFA of **29.62 million sq.m.** across 73 cities and regions, at an average land cost of **RMB 2,338 per sq.m.**[5](index=5&type=chunk) - Revenue contributions from property development, property management, and other businesses were **45.0%**, **47.2%**, and **7.8%**, respectively[5](index=5&type=chunk) - As of June 30, 2025, the Group's total borrowings decreased by **RMB 1.475 billion** compared to December 31, 2024[5](index=5&type=chunk) - As of June 30, 2025, the Group's total cash and bank balances amounted to **RMB 5.507 billion**[5](index=5&type=chunk) [Chairman's Report](index=3&type=section&id=Chairman's%20Report) The Chairman's Report provides an overview of the Group's business performance, strategic outlook, and expresses gratitude to stakeholders [Business Review](index=3&type=section&id=Business%20Review) The Group reported RMB 13.574 billion in revenue and a RMB 0.919 billion gross loss, with presales down 42.5% amid market pressure Revenue Composition for H1 2025 | Business Type | Revenue (RMB 100 million) | Proportion | | :--- | :--- | :--- | | Property Development | 61.10 | 45.0% | | Property Management | 64.08 | 47.2% | | Other Businesses | 10.56 | 7.8% | | **Total** | **135.74** | **100%** | - The Group's overall gross loss was **RMB 0.919 billion**, with a gross loss margin of **6.8%**[6](index=6&type=chunk) - As of June 30, 2025, the Group's net gearing ratio was **127.7%**, and total cash and bank balances were **RMB 5.507 billion**[6](index=6&type=chunk) - Affected by property market policies and buyer confidence, the Group's total presales amounted to **RMB 5.17 billion**, a **42.5% year-on-year decrease**; presales GFA was **552,000 sq.m.**, a **14.6% year-on-year decrease**; and average presales price was **RMB 9,363 per sq.m.**, a **32.7% year-on-year decrease**[7](index=7&type=chunk) - The Group cumulatively delivered **6,700 units** across 24 cities, with a total delivered area exceeding **504,600 sq.m.**, fulfilling its delivery commitments[8](index=8&type=chunk) [Outlook](index=4&type=section&id=Outlook) The Group expects property policies to stabilize demand and optimize supply, focusing on key city clusters and accelerating offshore debt restructuring - Property policies are expected to focus on "stabilizing demand, optimizing supply, and preventing risks," gradually improving the market environment[10](index=10&type=chunk) - The Group will continue to accelerate property presales and deliveries, adopting a prudent strategy for development in key city clusters such as the Pearl River Delta and Yangtze River Delta[10](index=10&type=chunk) - As of June 30, 2025, the Group's land bank was approximately **29.62 million sq.m.**, with the Pearl River Delta accounting for about **26% (7.67 million sq.m.)** and the Yangtze River Delta for about **6% (1.75 million sq.m.)**[10](index=10&type=chunk) - The Group will further advance offshore debt restructuring, aiming to present a preliminary restructuring plan by the end of 2025, and accelerate communication with offshore creditors to improve financial conditions and ensure sustainable operations[10](index=10&type=chunk) [Acknowledgement](index=4&type=section&id=Acknowledgement) The Chairman expresses sincere gratitude to all stakeholders for their unwavering support and dedication to the Group's development - The Chairman, on behalf of the Board, extends sincere gratitude to shareholders, customers, all employees, and other stakeholders for their unwavering support and dedication to the Group's continued development[11](index=11&type=chunk) [Results](index=5&type=section&id=Results) This section presents the Group's condensed interim consolidated financial statements, including profit or loss, comprehensive income, and financial position [Condensed Interim Consolidated Statement of Profit or Loss](index=5&type=section&id=Condensed%20Interim%20Consolidated%20Statement%20of%20Profit%20or%20Loss) The Group reported RMB 13.574 billion in revenue, a 35.8% decrease, with a RMB 8.030 billion loss attributable to owners for H1 2025 Condensed Interim Consolidated Statement of Profit or Loss (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 13,574,487 | 21,136,953 | | Cost of sales | (14,493,054) | (23,007,033) | | Gross loss | (918,567) | (1,870,080) | | Other income and gains, net | 76,964 | 258,515 | | Selling and marketing expenses | (204,024) | (664,416) | | Administrative expenses | (703,466) | (924,553) | | Net impairment losses on financial and contract assets | (1,357,332) | (83,867) | | Other expenses | (1,770,794) | (1,571,027) | | Finance costs, net | (361,335) | (497,781) | | Share of loss of investments accounted for using the equity method | (61,042) | (265,830) | | Loss before income tax | (5,299,596) | (5,619,039) | | Income tax expense | (2,087,893) | (3,281,250) | | Loss for the period | (7,387,489) | (8,900,289) | | Loss attributable to owners of the Company | (8,030,343) | (9,673,862) | | Basic loss per share (RMB Yuan) | (1.591) | (1.917) | [Condensed Interim Consolidated Statement of Comprehensive Income](index=6&type=section&id=Condensed%20Interim%20Consolidated%20Statement%20of%20Comprehensive%20Income) The Group reported a RMB 7.387 billion loss for the period and a total comprehensive loss of RMB 8.426 billion attributable to owners for H1 2025 Condensed Interim Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Loss for the period | (7,387,489) | (8,900,289) | | Other comprehensive (loss)/income for the period, net of tax | (395,672) | 169,502 | | Total comprehensive loss for the period | (7,783,161) | (8,730,787) | | Total comprehensive loss attributable to owners of the Company | (8,426,360) | (9,560,184) | - In H1 2025, exchange differences on translation resulted in an other comprehensive loss of **RMB 0.396 billion**, compared to an income of **RMB 26.6 million** in H1 2024[17](index=17&type=chunk) [Condensed Interim Consolidated Statement of Financial Position](index=7&type=section&id=Condensed%20Interim%20Consolidated%20Statement%20of%20Financial%20Position) The Group's total assets decreased to RMB 182.390 billion, with total liabilities at RMB 149.561 billion and total equity at RMB 32.829 billion Condensed Interim Consolidated Statement of Financial Position (As of June 30) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | **ASSETS** | | | | Total non-current assets | 68,925,454 | 71,073,558 | | Total current assets | 113,464,159 | 124,421,972 | | **TOTAL ASSETS** | **182,389,613** | **195,495,530** | | **EQUITY** | | | | Capital and reserves attributable to owners of the Company | 1,952,951 | 10,343,591 | | Perpetual capital securities | 15,848,370 | 15,317,290 | | Non-controlling interests | 15,027,258 | 14,618,155 | | **TOTAL EQUITY** | **32,828,579** | **40,279,036** | | **LIABILITIES** | | | | Total non-current liabilities | 17,110,628 | 18,163,831 | | Total current liabilities | 132,450,406 | 137,052,663 | | **TOTAL LIABILITIES** | **149,561,034** | **155,216,494** | | **TOTAL EQUITY AND LIABILITIES** | **182,389,613** | **195,495,530** | - As of June 30, 2025, capital and reserves attributable to owners of the Company significantly decreased from **RMB 10.344 billion** on December 31, 2024, to **RMB 1.953 billion**[22](index=22&type=chunk) [Notes](index=9&type=section&id=Notes) This section provides detailed notes on the Group's financial statements, covering general information, accounting policies, segment data, and specific financial line items [General Information](index=9&type=section&id=General%20Information) Agile Group Holdings Limited, incorporated in the Cayman Islands, primarily engages in property development and management in China, listed on HKEX since 2005 - The Company was incorporated in the Cayman Islands on July 14, 2005, primarily engaged in investment holding, with its subsidiaries mainly involved in property development and property management in China[23](index=23&type=chunk) - The Company's shares have been listed on The Stock Exchange of Hong Kong Limited since December 15, 2005[24](index=24&type=chunk) [Basis of Preparation](index=9&type=section&id=Basis%20of%20Preparation) Interim financials, prepared under HKAS 34, show a RMB 7.387 billion net loss and significant uncertainties due to overdue borrowings, but the Board affirms going concern - For the six months ended June 30, 2025, the Group recorded a net loss of **RMB 7.387 billion**[25](index=25&type=chunk) - As of June 30, 2025, the Group had cash and bank balances (including restricted cash) of **RMB 5.507 billion** and short-term borrowings of **RMB 37.869 billion**[25](index=25&type=chunk) - As of June 30, 2025, principal and interest on bank borrowings, other borrowings, and senior notes were not repaid by their scheduled due dates, indicating significant uncertainty[25](index=25&type=chunk) - The Board has implemented measures to improve liquidity, including advancing offshore borrowing restructuring, refinancing existing borrowings, accelerating property presales and collections, controlling administrative costs and capital expenditures, and seeking to dispose of non-core properties and businesses[27](index=27&type=chunk) - The Board believes that, after considering the aforementioned plans and measures, the Group will have sufficient working capital for the twelve months from June 30, 2025, and is satisfied that the condensed interim consolidated financial statements are prepared on a going concern basis[28](index=28&type=chunk) [Application of Revised Hong Kong Financial Reporting Standards](index=10&type=section&id=Application%20of%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards) The Group adopted revised HKFRS, including HKAS 21 (Amendment) "Lack of Exchangeability," with no significant impact on financial reporting - The Group first applied revised Hong Kong Financial Reporting Standards issued by the HKICPA during this period, including HKAS 21 (Amendment) "Lack of Exchangeability"[29](index=29&type=chunk) - The application of these revised standards had no significant impact on the Group's accounting policies, financial position, and performance presentation and/or disclosure[29](index=29&type=chunk) [Operating Segment Information](index=11&type=section&id=Operating%20Segment%20Information) The Group's three segments reported varied results, with property development incurring a RMB 4.788 billion operating loss, and total assets at RMB 182.390 billion - The Group is divided into three business segments: property development, property management, and other businesses, with associates and joint ventures primarily engaged in property development and property management[31](index=31&type=chunk) - The majority of the Group's consolidated revenue and results are derived from the PRC market, and most of its non-current assets are also located in the PRC[32](index=32&type=chunk) Segment Results for H1 2025 (RMB thousand) | Segment | Total Segment Sales | Sales to External Customers | Operating (Loss)/Profit | | :--- | :--- | :--- | :--- | | Property Development | 6,109,762 | 6,109,762 | (4,787,548) | | Property Management | 6,437,397 | 6,408,082 | 540,010 | | Other | 1,056,643 | 1,056,643 | (629,681) | | **The Group** | **13,603,802** | **13,574,487** | **(4,877,219)** | Segment Assets, Liabilities and Capital Expenditure for H1 2025 (RMB thousand) | Indicator | Property Development | Property Management | Other | The Group | | :--- | :--- | :--- | :--- | :--- | | Segment Assets | 90,806,635 | 17,947,165 | 64,046,553 | 172,514,234 | | Segment Liabilities | 13,546,948 | 6,904,052 | 54,882,728 | 75,047,609 | | Capital Expenditure | 8,988 | 55,747 | 124,718 | 189,453 | [Revenue, Other Income and Gains, Net](index=15&type=section&id=Revenue,%20Other%20Income%20and%20Gains,%20Net) The Group's revenue reached RMB 13.574 billion, primarily from property sales and management, while other income and gains significantly decreased Revenue Analysis (For the six months ended June 30) | Source of Income | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Property sales | 6,109,762 | 12,466,227 | | Property management services | 6,408,082 | 6,856,366 | | Other | 969,644 | 1,701,274 | | Gross rental income from investment properties under operating leases | 86,999 | 113,086 | | **Total revenue** | **13,574,487** | **21,136,953** | Other Income and Gains, Net Analysis (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest income | 27,706 | 70,023 | | Government grants | 36,272 | 14,897 | | Gains on disposal of intangible assets, property, plant and equipment and right-of-use assets | – | 71,411 | | Net exchange gains | 7,049 | 35,766 | | **Total** | **76,964** | **258,515** | [Other Expenses](index=17&type=section&id=Other%20Expenses) Other expenses increased by 12.7% to RMB 1.771 billion, mainly driven by a substantial rise in losses from losing control over subsidiaries Other Expenses Analysis (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Loss on disposal of joint ventures and associates | 232,413 | 649,174 | | Loss arising from loss of control over subsidiaries | 1,342,262 | 12,655 | | Fair value loss on investment properties | 15,118 | 76,571 | | **Total** | **1,770,794** | **1,571,027** | - Losses arising from loss of control over subsidiaries significantly increased from **RMB 12.655 million** in H1 2024 to **RMB 1.342 billion** in H1 2025[50](index=50&type=chunk) [Finance Costs, Net](index=18&type=section&id=Finance%20Costs,%20Net) Net finance costs decreased by 27.4% to RMB 0.361 billion, driven by reduced capitalized interest and exchange losses, and exchange gains on borrowings Finance Costs, Net Analysis (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Total interest expense | 1,815,112 | 2,178,785 | | Exchange (gains)/losses on borrowings | (215,183) | 189,738 | | Less: Interest and exchange losses capitalized | (1,238,694) | (1,869,081) | | **Finance costs, net** | **361,335** | **497,781** | - Exchange on borrowings shifted from a loss of **RMB 0.190 billion** in H1 2024 to a gain of **RMB 0.215 billion** in H1 2025[52](index=52&type=chunk) - Capitalized interest and exchange losses decreased from **RMB 1.869 billion** in H1 2024 to **RMB 1.239 billion** in H1 2025[52](index=52&type=chunk) [Income Tax Expense](index=18&type=section&id=Income%20Tax%20Expense) Income tax expense decreased to RMB 2.088 billion, with the Group benefiting from various preferential tax policies in mainland China - The Group benefits from a **15% preferential corporate income tax rate** for high-tech enterprises, Zhuhai Hengqin (Free Trade Zone), western cities, and Hainan Free Trade Port in mainland China[53](index=53&type=chunk)[54](index=54&type=chunk)[56](index=56&type=chunk) - Subsidiaries providing environmental services enjoy a "three-year corporate income tax exemption, three-year half reduction" policy[54](index=54&type=chunk) Income Tax Expense Analysis (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Corporate income tax | 305,097 | 752,919 | | PRC land appreciation tax | 1,187,760 | 1,387,895 | | Deferred income tax | 595,036 | 1,140,436 | | **Income tax expense** | **2,087,893** | **3,281,250** | [Dividends](index=19&type=section&id=Dividends) The Board does not recommend any interim dividend for the six months ended June 30, 2025, or 2024 - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025, and 2024[58](index=58&type=chunk) [Loss Per Share](index=19&type=section&id=Loss%20Per%20Share) Basic and diluted loss per share improved to RMB 1.591, calculated based on loss attributable to owners and 5.046 billion weighted average shares Loss Per Share Calculation (For the six months ended June 30) | Indicator | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Loss attributable to owners of the Company (RMB thousand) | (8,030,343) | (9,673,862) | | Weighted average number of ordinary shares in issue (thousand shares) | 5,046,048 | 5,046,048 | | Basic and diluted loss per share (RMB Yuan) | (1.591) | (1.917) | - The Group had no potential ordinary shares with dilutive effect in issue for the six months ended June 30, 2025, and 2024[60](index=60&type=chunk) [Trade and Other Receivables](index=20&type=section&id=Trade%20and%20Other%20Receivables) Total trade receivables were RMB 11.076 billion (RMB 9.387 billion net), and other receivables were RMB 45.190 billion (RMB 40.454 billion net) Trade and Other Receivables (As of June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Total trade receivables | 11,076,234 | 11,054,674 | | Less: Impairment allowance for trade receivables | (1,689,636) | (1,663,224) | | **Total trade receivables, net** | **9,386,598** | **9,391,450** | | Total other receivables | 45,190,472 | 44,997,279 | | Less: Impairment allowance for other receivables | (4,736,943) | (3,803,560) | | **Total other receivables, net** | **40,453,529** | **41,193,719** | | Trade and other receivables - current portion | 44,554,033 | 45,268,843 | Trade Receivables Ageing Analysis (As of June 30) | Ageing | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 90 days | 4,924,668 | 5,597,286 | | Over 90 days and within 365 days | 3,004,432 | 2,233,285 | | Over 365 days | 3,147,134 | 3,224,103 | | **Total** | **11,076,234** | **11,054,674** | [Trade and Other Payables](index=21&type=section&id=Trade%20and%20Other%20Payables) Total trade and other payables amounted to RMB 52.471 billion, with trade payables at RMB 21.576 billion and other payables at RMB 30.950 billion Trade and Other Payables (As of June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade payables | 21,576,387 | 21,721,016 | | Total other payables | 30,899,885 | 30,458,095 | | **Total trade and other payables** | **52,471,155** | **52,408,808** | | Trade and other payables - current portion | 47,656,732 | 47,622,434 | Trade Payables Ageing Analysis (As of June 30) | Ageing | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 90 days | 3,629,053 | 4,359,418 | | Over 90 days and within 180 days | 4,233,181 | 4,405,056 | | Over 180 days and within 365 days | 3,927,876 | 4,329,235 | | Over 365 days | 9,786,277 | 8,627,307 | | **Total** | **21,576,387** | **21,721,016** | [Management Discussion and Analysis](index=22&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an in-depth analysis of the Group's financial performance, operational highlights, liquidity, and future strategies [Overall Performance](index=22&type=section&id=Overall%20Performance) Revenue decreased by 35.8% to RMB 13.574 billion, with a RMB 8.030 billion loss attributable to owners, primarily due to challenging market conditions and impairment losses Overall Performance for H1 2025 | Indicator | H1 2025 (RMB 100 million) | H1 2024 (RMB 100 million) | Year-on-year change | | :--- | :--- | :--- | :--- | | Revenue | 135.74 | 211.37 | -35.8% | | Operating loss | (48.77) | (48.55) | +0.4% | | Loss for the period | (73.87) | (89.00) | -17.0% | | Loss attributable to owners of the Company | (80.30) | (96.74) | -17.0% | | Basic loss per share (RMB Yuan) | (1.591) | (1.917) | -17.0% | - Key reasons for the loss included a challenging property operating environment, impairment losses on financial and contract assets, and losses arising from loss of control over subsidiaries[68](index=68&type=chunk) [Land Bank](index=22&type=section&id=Land%20Bank) The Group's land bank totaled 29.62 million sq.m. across 73 cities, with a competitive average land cost of RMB 2,338 per sq.m. - As of June 30, 2025, the Group held a land bank with an estimated total GFA of **29.62 million sq.m.** across 73 cities[69](index=69&type=chunk) - The land bank is distributed across South China, East China, Western China, Central China, Hainan, Yunnan, Northeast China, North China, Hong Kong, and overseas, with an average land cost of **RMB 2,338 per sq.m.**[69](index=69&type=chunk) [Property Development and Sales](index=23&type=section&id=Property%20Development%20and%20Sales) Property development sales revenue decreased by 51.0% to RMB 6.110 billion, with total presales at RMB 5.17 billion and a 552,000 sq.m. presales GFA - During the review period, the Group's recognized property development sales revenue was **RMB 6.110 billion**, a **51.0% decrease** compared to H1 2024[71](index=71&type=chunk) - Total recognized sales GFA was **470,000 sq.m.**, a **59.6% decrease** compared to H1 2024[71](index=71&type=chunk) - The Group, together with its joint ventures and associates, and real estate projects managed by the Group and sold under the "Agile" brand, achieved total presales of **RMB 5.17 billion**, corresponding to a cumulative presales GFA of **552,000 sq.m.** and an average presales price of **RMB 9,363 per sq.m.**[110](index=110&type=chunk) [Property Management](index=23&type=section&id=Property%20Management) Property management revenue decreased by 6.5% to RMB 6.408 billion, with GFA under management down 10.4% to 516.7 million sq.m. - During the review period, the Group's property management revenue was **RMB 6.408 billion**, a **6.5% decrease** compared to H1 2024[72](index=72&type=chunk) - As of June 30, 2025, the Group's total GFA under management was **516.7 million sq.m.**, a **10.4% decrease** compared to June 30, 2024[72](index=72&type=chunk) - The property management business focused on four core tasks: "stable development, enhanced quality, accelerated collections, and improved efficiency," leveraging lean management and quality improvement to ensure healthy and sustainable business development[111](index=111&type=chunk) [Other Businesses](index=23&type=section&id=Other%20Businesses) Other businesses, including property construction and environmental services, generated RMB 1.056 billion in income, a 41.8% year-on-year decrease - Other businesses primarily include property construction services, green ecological landscaping services, smart home and decoration services, environmental protection services, and commercial management services[73](index=73&type=chunk) - During the review period, the Group's other income was **RMB 1.056 billion**, a **41.8% decrease** compared to H1 2024[73](index=73&type=chunk) [Cost of Sales](index=23&type=section&id=Cost%20of%20Sales) Cost of sales decreased by 37.0% to RMB 14.493 billion, mainly due to reduced recognized sales GFA, encompassing various operational expenses - The Group's cost of sales primarily refers to direct costs arising from property development and property management activities, including construction, decoration and design costs, land use rights costs, capitalized interest costs, employee benefit expenses, cleaning expenses, security expenses, and tax surcharges[74](index=74&type=chunk) - During the review period, the Group's cost of sales was **RMB 14.493 billion**, a **37.0% decrease** compared to H1 2024, primarily due to a reduction in recognized sales GFA[74](index=74&type=chunk) [Gross Loss](index=24&type=section&id=Gross%20Loss) The Group's gross loss decreased by 50.9% to RMB 0.919 billion, resulting in a gross loss margin of 6.8% - During the review period, the Group's gross loss was **RMB 0.919 billion**, a **50.9% decrease** compared to H1 2024[76](index=76&type=chunk) - During the review period, the Group's gross loss margin was **6.8%**[76](index=76&type=chunk) [Other Income and Gains, Net](index=24&type=section&id=Other%20Income%20and%20Gains,%20Net) Other income and gains, net, decreased by 70.2% to RMB 0.077 billion, mainly due to reductions in interest income, asset disposal gains, and exchange gains - During the review period, the Group's other income and gains, net, was a gain of **RMB 0.077 billion**, a **70.2% decrease** compared to H1 2024[77](index=77&type=chunk) - The decrease primarily resulted from a **RMB 0.046 billion reduction** in interest income, no gains on disposal of intangible assets recorded in the current period (compared to **RMB 0.071 billion** in the prior year), and a **RMB 0.029 billion decrease** in exchange gains[79](index=79&type=chunk) [Selling and Marketing Expenses](index=24&type=section&id=Selling%20and%20Marketing%20Expenses) Selling and marketing expenses decreased by 69.3% to RMB 0.204 billion, primarily due to effective cost control measures - During the review period, the Group's selling and marketing expenses were **RMB 0.204 billion**, a **69.3% decrease** compared to H1 2024, primarily due to the Group's effective control over selling and marketing costs[77](index=77&type=chunk) [Administrative Expenses](index=24&type=section&id=Administrative%20Expenses) Administrative expenses decreased by 23.9% to RMB 0.703 billion, primarily attributed to the Group's stringent cost control measures - During the review period, the Group's administrative expenses were **RMB 0.703 billion**, a **23.9% decrease** compared to H1 2024, primarily due to the Group's stringent cost control during the period[78](index=78&type=chunk) [Other Expenses](index=25&type=section&id=Other%20Expenses) Other expenses increased by 12.7% to RMB 1.771 billion, mainly driven by higher losses from losing control over subsidiaries - During the review period, the Group's other expenses were **RMB 1.771 billion**, a **12.7% increase** compared to H1 2024, primarily due to increased losses arising from loss of control over subsidiaries[80](index=80&type=chunk) [Finance Costs, Net](index=25&type=section&id=Finance%20Costs,%20Net) Net finance costs decreased by 27.4% to RMB 0.361 billion, driven by reduced capitalized interest and exchange losses, and lower interest expenses due to decreased average borrowing balances - During the review period, the Group's net finance costs were **RMB 0.361 billion**, a **27.4% decrease** compared to H1 2024[81](index=81&type=chunk) - The decrease primarily resulted from a **33.7% reduction** in capitalized interest and exchange losses to **RMB 1.239 billion**, and a **16.4% decrease** in interest expenses to **RMB 1.814 billion**, the latter mainly due to lower average borrowing balances[84](index=84&type=chunk) [Share of Loss of Investments Accounted for Using the Equity Method](index=25&type=section&id=Share%20of%20Loss%20of%20Investments%20Accounted%20for%20Using%20the%20Equity%20Method) Share of loss from equity-accounted investments decreased by 77.0% to RMB 0.061 billion - During the review period, the share of loss of investments accounted for using the equity method was **RMB 0.061 billion**, a **77.0% decrease** compared to H1 2024[81](index=81&type=chunk) [Loss Attributable to Owners of the Company](index=25&type=section&id=Loss%20Attributable%20to%20Owners%20of%20the%20Company) Loss attributable to owners of the Company decreased by 17.0% to RMB 8.030 billion for the period ended June 30, 2025 - For the period ended June 30, 2025, the loss attributable to owners of the Company was **RMB 8.030 billion**, a **17.0% decrease** compared to H1 2024[82](index=82&type=chunk) [Liquidity, Financial and Capital Resources](index=25&type=section&id=Liquidity,%20Financial%20and%20Capital%20Resources) Total cash and bank balances were RMB 5.507 billion, total borrowings RMB 47.442 billion, and gearing ratio rose to 127.7%, with overdue payments and commitments posing challenges [Cash Position and Available Funds](index=25&type=section&id=Cash%20Position%20and%20Available%20Funds) Total cash and bank balances were RMB 5.507 billion, with RMB 3.093 billion in cash and equivalents, and RMB 2.414 billion restricted for various guarantees Cash Position (As of June 30) | Item | 2025 (RMB 100 million) | 2024 (RMB 100 million) | | :--- | :--- | :--- | | Total cash and bank balances | 55.07 | 71.89 | | Cash and cash equivalents | 30.93 | 42.31 | | Restricted cash | 24.14 | 29.58 | - Restricted cash primarily includes guarantee deposits for mortgage loans, guarantee deposits for presales property construction, and accident compensation[85](index=85&type=chunk) [Borrowings](index=26&type=section&id=Borrowings) Total borrowings decreased to RMB 47.442 billion, but the gearing ratio rose to 127.7%, with overdue payments potentially triggering accelerated repayment demands Borrowings Repayment Schedule (As of June 30) | Type of Borrowing | Within 1 year (RMB million) | Over 1 year and within 2 years (RMB million) | Over 2 years and within 5 years (RMB million) | Subtotal (RMB million) | | :--- | :--- | :--- | :--- | :--- | | Bank and other borrowings | 23,874 | 2,953 | 990 | 27,817 | | Senior notes | 12,499 | – | – | 12,499 | | Domestic corporate bonds, etc | 1,496 | 5,405 | 225 | 7,126 | | **Total** | **37,869** | **8,358** | **1,215** | **47,442** | - As of June 30, 2025, the Group's total borrowings were **RMB 47.442 billion**, a **decrease of RMB 1.474 billion** compared to December 31, 2024[5](index=5&type=chunk)[86](index=86&type=chunk)[87](index=87&type=chunk) - The gearing ratio (net borrowings divided by total equity) increased from **103.6%** as of December 31, 2024, to **127.7%** as of June 30, 2025[90](index=90&type=chunk) - As of June 30, 2025, principal and interest on bank borrowings, other borrowings, and senior notes were not repaid by their scheduled due dates, and creditors may demand accelerated repayment[90](index=90&type=chunk) [Currency Risk](index=27&type=section&id=Currency%20Risk) The Group primarily operates in RMB, with some foreign currency-denominated assets and liabilities, but no foreign currency forward contracts - The Group primarily conducts its business in RMB, with some bank deposits, bank loans, and senior notes denominated in **HKD, USD, and MYR**[91](index=91&type=chunk) - As of June 30, 2025, the Group had not entered into any foreign currency forward contracts[92](index=92&type=chunk) [Borrowing Costs](index=27&type=section&id=Borrowing%20Costs) Total borrowing costs decreased by 16.4% to RMB 1.814 billion, with the effective borrowing interest rate falling to 7.38% - During the review period, the Group's total borrowing costs (excluding interest expenses on lease liabilities) were **RMB 1.814 billion**, a **16.4% decrease** compared to H1 2024, primarily due to lower average borrowing balances[93](index=93&type=chunk) - The Group's effective borrowing interest rate during the review period was **7.38%** (H1 2024: **7.96%**)[93](index=93&type=chunk) [Contingent Liabilities and Financial Guarantees](index=28&type=section&id=Contingent%20Liabilities%20and%20Financial%20Guarantees) The Group's contingent liabilities include RMB 32.781 billion in mortgage loan guarantees, RMB 1.932 billion for associates, RMB 11.316 billion for joint ventures, and RMB 7.290 billion for third-party loans - As of June 30, 2025, the Group provided mortgage loan guarantees for property buyers, with outstanding guarantee amounts of **RMB 32.781 billion**[95](index=95&type=chunk) - The Group provided loan guarantees for associates, with an attributable guarantee amount of **RMB 1.932 billion**[96](index=96&type=chunk) - The Group provided loan guarantees for joint ventures, with an attributable guarantee amount of **RMB 11.316 billion**[97](index=97&type=chunk) - The Group provided guarantees for loan financing of **RMB 7.290 billion** to certain independent third parties[97](index=97&type=chunk) [Commitments](index=28&type=section&id=Commitments) Capital commitments include RMB 14.544 billion for property development, RMB 0.916 billion for land acquisition, and RMB 0.001 billion for property, plant, and equipment - As of June 30, 2025, the Group's capital commitments for property development activities amounted to **RMB 14.544 billion**[98](index=98&type=chunk) - The Group's committed land acquisition premium payments amounted to **RMB 0.916 billion**[98](index=98&type=chunk) - The Group's capital commitments for the purchase of property, plant and equipment amounted to **RMB 0.001 billion**[98](index=98&type=chunk) [Major Investments Held, Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures, and Future Plans for Material Investments or Capital Assets](index=29&type=section&id=Major%20Investments%20Held,%20Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries,%20Associates%20and%20Joint%20Ventures,%20and%20Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) The Group disposed of its entire stake in Guangdong Zhujiangqiao Biotechnology Co., Ltd., with no other major investments, acquisitions, or disposals during the period - Agile New Investment, a wholly-owned subsidiary of the Company, disposed of approximately **21.1632% equity** in Guangdong Zhujiangqiao Biotechnology Co., Ltd. for a consideration of **RMB 191.219 million**[101](index=101&type=chunk) - Agile New Investment entered into a repurchase agreement with the target company to repurchase approximately **4.7360% equity** through a targeted capital reduction for a consideration of **RMB 42.792 million**[101](index=101&type=chunk) - Upon completion of the transactions, the Group will no longer hold any shares in the target company[101](index=101&type=chunk) - Other than the aforementioned disclosures, there were no other major investments held, material acquisitions or disposals of subsidiaries, associates, and joint ventures, nor any other plans for material investments or capital asset additions during the period[102](index=102&type=chunk) [Comprehensive Debt Management](index=29&type=section&id=Comprehensive%20Debt%20Management) Facing liquidity pressure, the Group failed to pay USD 483 million senior note interest and is actively negotiating an offshore debt restructuring plan, aiming for a consensual arrangement by end-2025 - The Company failed to pay interest on its **USD 483 million 6.05% senior notes** due May 13, 2024, and anticipates being unable to meet all payment obligations under its offshore indebtedness[103](index=103&type=chunk) - The Group has initiated discussions and negotiations with various classes of offshore creditors to formulate specific terms for an offshore debt restructuring plan[105](index=105&type=chunk) - The goal is to reach a consensual restructuring arrangement with the majority of the Group's key offshore creditors by the end of 2025[105](index=105&type=chunk) - The Company will issue further announcements as appropriate, in accordance with the Listing Rules and other regulations, to inform shareholders and other investors of any material developments regarding comprehensive offshore debt management[106](index=106&type=chunk) [Other Information](index=30&type=section&id=Other%20Information) This section covers additional disclosures including post-reporting period events, employee information, dividend policy, and corporate governance matters [Events After the Reporting Period](index=30&type=section&id=Events%20After%20the%20Reporting%20Period) The Group reported no other significant events after the reporting period - The Group had no other significant events after the reporting period[107](index=107&type=chunk) [Employees and Remuneration Policy](index=30&type=section&id=Employees%20and%20Remuneration%20Policy) The Group employed 84,105 individuals, with total remuneration costs of RMB 2.924 billion, guided by market levels and employee performance - As of June 30, 2025, the Group had a total of **84,105 employees**, with **84,079** located in mainland China[108](index=108&type=chunk) - For the six months ended June 30, 2025, total remuneration costs (including directors' emoluments) were **RMB 2.924 billion**, a decrease compared to H1 2024[108](index=108&type=chunk) - The Group determines employee remuneration based on market levels, employee performance, and contributions, offering comprehensive welfare programs and career development opportunities[108](index=108&type=chunk) [Interim Dividends](index=31&type=section&id=Interim%20Dividends) The Board does not recommend any interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025[113](index=113&type=chunk) [Review of Interim Results](index=31&type=section&id=Review%20of%20Interim%20Results) Interim results for H1 2025 were not independently audited, but the Audit Committee reviewed them, including accounting principles and internal controls - The Group's interim results for the six months ended June 30, 2025, were not audited or reviewed by the Company's independent auditors[114](index=114&type=chunk) - The Company's Audit Committee has reviewed the unaudited interim results and the adopted accounting principles and practices, and discussed internal controls and financial reporting matters[114](index=114&type=chunk) [Compliance with the Standard Code for Securities Transactions by Directors](index=32&type=section&id=Compliance%20with%20the%20Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company adopted a directors' securities transaction code, with all directors confirming full compliance during the review period - The Company has adopted a code for securities transactions by its directors, with terms no less exacting than the required standards set out in Appendix C3 of the Listing Rules[116](index=116&type=chunk) - Following specific enquiries with all directors, each director has confirmed to the Company that they fully complied with the code for securities transactions by directors for the six months ended June 30, 2025[116](index=116&type=chunk) [Compliance with the Corporate Governance Code](index=32&type=section&id=Compliance%20with%20the%20Corporate%20Governance%20Code) The Company complied with the Corporate Governance Code, except for the combined Chairman and CEO roles, which the Board believes provides unified leadership - For the six months ended June 30, 2025, the Company complied with all code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules, except for Code Provision C.2.1[117](index=117&type=chunk) - The roles of Chairman and Chief Executive Officer are combined and held by Mr. Chan Cheuk Lin, which the Board believes provides strong and unified leadership for the Group's development[117](index=117&type=chunk) - The Board believes that other Board members have sufficient authority to review and/or monitor the exercise of power by the Chairman of the Board and the Chief Executive Officer of the Company[117](index=117&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=32&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20Listed%20Securities) Guangzhou Panyu Agile exchanged RMB 0.5 billion of Public Bond I for restructuring bonds and redeemed RMB 50 million, also fully redeeming RMB 0.18 billion of Public Bond II - Guangzhou Panyu Agile Real Estate Development Co., Ltd. fully exchanged **RMB 0.5 billion** of Public Bond I due in 2025 for restructuring exchange bonds, and Public Bond I was delisted on April 8, 2025[118](index=118&type=chunk) - On July 2, 2025, Panyu Agile redeemed **RMB 50 million** of restructuring exchange bonds at a consideration of principal plus accrued interest[118](index=118&type=chunk) - On June 26, 2025, Panyu Agile fully redeemed **RMB 0.18 billion** of Public Bond II due in 2025 at a consideration of principal plus accrued interest, and it was delisted on the same day[120](index=120&type=chunk) - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of its listed securities[120](index=120&type=chunk) [Publication of Interim Results and Interim Report on the Company's, HKEX and SGX Websites](index=33&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report%20on%20the%20Company's,%20HKEX%20and%20SGX%20Websites) This announcement is published on the Company's, HKEX, and SGX websites, with the full interim report to follow for shareholders - This announcement has been published on the websites of the Company (www.agile.com.cn), The Stock Exchange of Hong Kong Limited (www.hkex.com.hk), and Singapore Exchange Limited (www.sgx.com)[121](index=121&type=chunk) - The Company's interim report for the six months ended June 30, 2025, containing all information required by the Listing Rules, will be dispatched to the Company's shareholders and published on the aforementioned websites in due course[121](index=121&type=chunk) [Board of Directors](index=33&type=section&id=Board%20of%20Directors) As of this announcement, the Board of Directors consists of nine members, including executive, non-executive, and independent non-executive directors - As of the date of this announcement, the Board of Directors comprises nine members: Mr. Chan Cheuk Lin (Chairman and President), Mr. Wong Fung Chiew, Ms. Yue Yuan (Executive Directors), Mr. Chan Cheuk Hung, Mr. Chan Cheuk Hei, Mr. Chan Cheuk Nam (Non-executive Directors), Mr. Kwong Chi Keung, Mr. Hui Chiu Chung, and Dr. Poon Suk Lung (Independent Non-executive Directors)[122](index=122&type=chunk)[123](index=123&type=chunk)[124](index=124&type=chunk)