香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈 全部或任何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責 任。 鈞濠集團有限公司 GRAND FIELD GROUP HOLDINGS LIMITED (股份代號：���) （於百慕達註冊成立之有限公司） 補充公佈 有關截至二零二四年十二月三十一日止年度年報的進一步資料 茲提述鈞濠集團有限公司（「本公司」）截至二零二四年十二月三十一日止年度 之年報（「二零二四年年報」）。除文義另有所指外，本公佈所用詞彙與二零二四 年年報所定義者具有相同涵義。 董事會謹此向本公司股東及潛在投資者提供以下有關購股權計劃之補充資 料，該計劃詳載於二零二四年年報「董事會報告書」標題為「購股權計劃」一節。 可供發行之股份總數 截至二零二四年年報日期，根據購股權計劃可供發行之股份總數為1,224,777 股，約佔本公司已發行股份總數之10%。 1 可供授予購股權總數之變動 於二零一九年六月十日舉行之本公司股東週年大會（「股東週年大會」）上， 股東批准將股份購股權計劃下授予購股權之10%計劃授權 ...

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分內容而產生或因依賴該等內容而引致的任 何損失承擔任何責任。 ZHONGTAI FUTURES Company Limited 中泰期貨股份有限公司 （在中華人民共和國註冊成立的股份有限公司） 截 至2025年6月30日 止六個月之中期業績公告 中 泰 期 貨 股 份 有 限 公 司（「本公司」）董 事 會（「董 事 會」）謹 此宣佈本公司及其附屬公司 （「本 集 團」）截 至2025年6月30日 止 六 個 月 之 未 經 審 計 綜 合 中 期 業 績，連 同2024年 同 期 的 比 較 數 字。本 業 績 公 告 列 載 本 公 司2025年 中 期 報 告 全 文，並 符 合《香 港聯合交 易 所 有 限 公 司 證 券 上 市 規 則》中 有 關 中 期 業 績 初 步 公 告 附 載 的 資 料 之 披 露 要 求。 本業績公告在香港聯合交易所有限公司網 站（www.hkexnews.hk）及 本 公 司 網 站 （www.ztqh.com）上 刊 ...

Interim Financial Statements [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For H1 2025, revenue increased 19.6% to **16.7 million SGD**, with loss attributable to owners narrowing to **0.65 million SGD** Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Metric | 2025 (SGD) | 2024 (SGD) | | :--- | :--- | :--- | | Revenue | 16,738,006 | 13,989,129 | | Cost of sales and services | (12,180,894) | (10,585,156) | | Gross Profit | 4,557,112 | 3,403,973 | | Other income | 182,956 | 193,371 | | Other gains — net | 74,930 | 216,104 | | Reversal of expected credit losses on trade receivables | 158,116 | – | | Selling and distribution expenses | (154,811) | (116,517) | | Administrative expenses | (5,216,278) | (4,939,100) | | Operating Loss | (397,975) | (1,242,169) | | Finance costs | (161,058) | (123,554) | | Loss Before Tax | (559,033) | (1,365,723) | | Income tax (expense)/credit | (87,239) | 31,687 | | Loss for the period attributable to owners of the Company | (646,272) | (1,334,036) | | Total Comprehensive Loss | (661,079) | (1,333,809) | | Basic and diluted loss per share (SGD cents) | (0.06) | (0.13) | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As at June 30, 2025, total assets slightly decreased due to lower cash, with equity and liabilities remaining stable Condensed Consolidated Statement of Financial Position (As at June 30) | Metric | 2025 (SGD) | 2024 (SGD) | | :--- | :--- | :--- | | **ASSETS** | | | | Total Non-current Assets | 24,109,889 | 24,492,306 | | Total Current Assets | 31,919,572 | 31,774,971 | | **Total Assets** | **56,029,461** | **56,267,277** | | **EQUITY** | | | | Total Equity attributable to owners of the Company | 39,722,450 | 40,383,529 | | **LIABILITIES** | | | | Total Non-current Liabilities | 10,274,535 | 10,436,627 | | Total Current Liabilities | 6,032,476 | 5,447,121 | | **Total Liabilities** | **16,307,011** | **15,883,748** | | **Total Equity and Liabilities** | **56,029,461** | **56,267,277** | Notes to the Condensed Consolidated Interim Financial Statements [1 General Information](index=5&type=section&id=1%20General%20Information) Beng Soon Machinery Holdings Limited was incorporated in 2018, listed in 2019, and operates demolition services in Singapore - The Company was incorporated in the Cayman Islands on April 6, 2018, and listed on the Main Board of the Stock Exchange of Hong Kong on November 8, 2019[7](index=7&type=chunk) - The Group's principal activities are providing demolition services, selling inventory, and leasing machinery in Singapore[7](index=7&type=chunk) - The condensed consolidated interim financial statements are presented in Singapore Dollars ("SGD"), the Company's functional currency[8](index=8&type=chunk) [2 Basis of Preparation and Significant Accounting Policies](index=5&type=section&id=2%20Basis%20of%20Preparation%20and%20Significant%20Accounting%20Policies) This section outlines the basis of preparation for interim financial statements, adhering to IAS 34 and HKEX Listing Rules - The unaudited condensed consolidated interim financial statements are prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and the applicable disclosure requirements of Appendix D2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[10](index=10&type=chunk) - The accounting policies applied are consistent with those applied in the annual financial statements for the year ended December 31, 2024, except as described in Note 3[11](index=11&type=chunk) - Income tax for the six months ended June 30, 2025 and 2024, is accrued using the tax rate applicable to the expected total annual profit[11](index=11&type=chunk) [3 Adoption of New and Revised IFRSs](index=6&type=section&id=3%20Adoption%20of%20New%20and%20Revised%20IFRSs) The Group has consistently applied all new and revised IFRSs during the period but has not yet adopted those issued but not yet effective - The Group has consistently applied all new and revised International Financial Reporting Standards and amendments issued by the International Accounting Standards Board and the IFRS Interpretations Committee throughout the period[12](index=12&type=chunk) - The Group has not early adopted any new and revised IFRSs that have been issued but are not yet effective[12](index=12&type=chunk) - The Group is currently assessing the impact of adopting these new and revised IFRSs on its results and financial position[12](index=12&type=chunk) [4 Financial Risk Management and Capital Risk Management](index=6&type=section&id=4%20Financial%20Risk%20Management%20and%20Capital%20Risk%20Management) The Group aims to safeguard its ability to continue as a going concern and provide returns to shareholders by optimizing its capital structure - The Group's objective in managing capital is to safeguard its ability to continue as a going concern, provide returns to shareholders, and benefit other stakeholders, while maintaining an optimal capital structure to reduce the cost of capital[13](index=13&type=chunk) Capital Management (As at June 30) | Metric | 2025 (SGD) | 2024 (SGD) | | :--- | :--- | :--- | | Lease liabilities | 11,466,999 | 11,281,148 | | Less: Cash and cash equivalents | (13,190,225) | (14,061,636) | | Net cash | (1,723,226) | (2,780,488) | | Total equity | 39,722,450 | 40,383,529 | | Total capital | 37,999,224 | 37,603,041 | | Gearing ratio | Not applicable | Not applicable | - Financial assets at fair value through profit or loss primarily consist of keyman insurance contracts, whose fair value is determined by their cash surrender value[16](index=16&type=chunk)[17](index=17&type=chunk)[19](index=19&type=chunk) [5 Revenue](index=8&type=section&id=5%20Revenue) The Group's revenue primarily derives from providing demolition services, with total revenue increasing by 19.6% to **16.7 million SGD** Revenue Breakdown (For the six months ended June 30) | Revenue Source | 2025 (SGD) | 2024 (SGD) | | :--- | :--- | :--- | | Revenue recognized from providing demolition services | 16,209,621 | 12,830,654 | | Others | 528,385 | 1,158,475 | | **Total Revenue** | **16,738,006** | **13,989,129** | - Revenue from providing demolition services includes net amounts directly paid by project owners, proceeds from the disposal of scrap materials from demolition sites, and proceeds from earth disposal[22](index=22&type=chunk) [6 Other Income and Other Gains — Net](index=9&type=section&id=6%20Other%20Income%20and%20Other%20Gains%20%E2%80%94%20Net) Other income slightly decreased, while other gains net significantly reduced, mainly due to lower gains from asset disposal Other Income and Other Gains — Net (For the six months ended June 30) | Item | 2025 (SGD) | 2024 (SGD) | | :--- | :--- | :--- | | **Other income:** | | | | Interest income | 116,697 | 166,778 | | Government grants | 42,259 | 2,593 | | Rental income from investment properties | 24,000 | 24,000 | | **Total Other Income** | **182,956** | **193,371** | | **Other gains/(losses) — net:** | | | | Gain on disposal of property, plant and equipment | 72,000 | 213,888 | | Fair value gain on financial assets at fair value through profit or loss | 2,889 | 2,812 | | Net foreign exchange gain/(loss) | 41 | (596) | | **Total Other Gains — Net** | **74,930** | **216,104** | [7 Loss Before Tax](index=9&type=section&id=7%20Loss%20Before%20Tax) Loss before tax significantly narrowed to **559,033 SGD** in H1 2025, influenced by employee benefits and depreciation Loss Before Tax Components (For the six months ended June 30) | Item | 2025 (SGD) | 2024 (SGD) | | :--- | :--- | :--- | | Employee benefits expense (including directors' emoluments) | 5,440,847 | 6,136,918 | | Depreciation | 1,919,997 | 2,130,363 | | Auditor's remuneration | 35,020 | 35,681 | | Short-term lease related expenses | 335,784 | 321,437 | - Employee benefits expense primarily includes wages, salaries, bonuses, other benefits, and retirement benefit costs[25](index=25&type=chunk) [8 Finance Costs](index=10&type=section&id=8%20Finance%20Costs) The Group's finance costs increased to **161,058 SGD** in H1 2025 from **123,554 SGD** in H1 2024 Finance Costs (For the six months ended June 30) | Item | 2025 (SGD) | 2024 (SGD) | | :--- | :--- | :--- | | Finance costs | 161,058 | 123,554 | [9 Income Tax Expense/(Credit)](index=11&type=section&id=9%20Income%20Tax%20Expense%2F%28Credit%29) The Group recorded an income tax expense of **87,239 SGD** in H1 2025, compared to a credit of **31,687 SGD** in H1 2024 Income Tax Expense/(Credit) (For the six months ended June 30) | Item | 2025 (SGD) | 2024 (SGD) | | :--- | :--- | :--- | | Current tax — Singapore | 18,222 | – | | Deferred tax — Singapore | 69,017 | (31,687) | | **Income Tax Expense/(Credit)** | **87,239** | **(31,687)** | - Singapore corporate tax expense is provided at a rate of 17% on the estimated assessable profit[27](index=27&type=chunk) - No provision for Hong Kong profits tax was made as the Group had no assessable profit for both periods[27](index=27&type=chunk) [10 Loss Per Share](index=11&type=section&id=10%20Loss%20Per%20Share) Basic loss per share improved to **0.06 SGD cents** in H1 2025 from **0.13 SGD cents** in H1 2024 Loss Per Share (For the six months ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Loss attributable to owners of the Company (SGD) | (646,272) | (1,334,036) | | Weighted average number of ordinary shares in issue | 1,000,000,000 | 1,000,000,000 | | **Basic loss per share (SGD cents)** | **(0.06)** | **(0.13)** | - Diluted loss per share is equal to basic loss per share as there are no outstanding potential dilutive ordinary shares[30](index=30&type=chunk) [11 Trade Receivables](index=12&type=section&id=11%20Trade%20Receivables) Net trade receivables slightly increased to **4,425,701 SGD** as at June 30, 2025, with a typical 30-day credit period Trade Receivables (As at June 30) | Item | 2025 (SGD) | 2024 (SGD) | | :--- | :--- | :--- | | Trade receivables from third parties | 4,507,584 | 4,452,676 | | Less: Provision for expected credit losses on trade receivables | (384,432) | (542,548) | | **Subtotal** | **4,123,152** | **3,910,128** | | Retention monies | 302,549 | 439,831 | | **Total** | **4,425,701** | **4,349,959** | Aging Analysis of Trade Receivables (As at June 30) | Aging | 2025 (SGD) | 2024 (SGD) | | :--- | :--- | :--- | | Within 30 days | 2,914,265 | 3,142,811 | | 31 to 60 days | 494,866 | 331,582 | | 61 to 90 days | 431,895 | 394,650 | | 91 to 120 days | 282,126 | 41,085 | | **Total** | **4,123,152** | **3,910,128** | [12 Deposits, Prepayments and Other Receivables](index=13&type=section&id=12%20Deposits%2C%20Prepayments%20and%20Other%20Receivables) Total deposits, prepayments, and other receivables significantly increased to **2,012,262 SGD** as at June 30, 2025, driven by prepayments Deposits, Prepayments and Other Receivables (As at June 30) | Item | 2025 (SGD) | 2024 (SGD) | | :--- | :--- | :--- | | Deposits paid to third parties | 117,190 | 90,930 | | Loans to staff | 5,451 | 3,200 | | Prepayments | 1,868,522 | 151,626 | | Other receivables | 21,099 | 38 | | **Total Current Portion** | **2,012,262** | **245,794** | [13 Cash and Cash Equivalents](index=13&type=section&id=13%20Cash%20and%20Cash%20Equivalents) Cash and cash equivalents decreased to **13,190,225 SGD** as at June 30, 2025, mainly due to reductions in bank cash and fixed deposits Cash and Cash Equivalents (As at June 30) | Item | 2025 (SGD) | 2024 (SGD) | | :--- | :--- | :--- | | Cash at bank | 1,985,225 | 2,056,636 | | Cash on hand | 5,000 | 5,000 | | Unsecured fixed deposits with banks | 11,200,000 | 12,000,000 | | **Total** | **13,190,225** | **14,061,636** | [14 Trade and Other Payables](index=13&type=section&id=14%20Trade%20and%20Other%20Payables) Total trade and other payables increased to **3,704,875 SGD** as at June 30, 2025, primarily driven by higher trade payables Trade and Other Payables (As at June 30) | Item | 2025 (SGD) | 2024 (SGD) | | :--- | :--- | :--- | | Trade payables | 2,620,479 | 1,874,765 | | Accrued expenses | 831,004 | 829,362 | | Other payables | 253,392 | 538,981 | | **Total** | **3,704,875** | **3,243,108** | Aging Analysis of Trade Payables (As at June 30) | Aging | 2025 (SGD) | 2024 (SGD) | | :--- | :--- | :--- | | Up to 30 days | 1,720,629 | 1,159,905 | | 31 to 60 days | 717,950 | 564,361 | | 61 to 90 days | 176,961 | 131,113 | | 91 to 120 days | 4,939 | 19,386 | | **Total** | **2,620,479** | **1,874,765** | [15 Share Capital](index=14&type=section&id=15%20Share%20Capital) The Company's authorized and issued share capital remained unchanged as at June 30, 2025 Share Capital Movement (As at June 30) | Item | Number of Shares | Share Capital (HKD/SGD) | | :--- | :--- | :--- | | **Authorized:** | | | | Ordinary shares of HKD0.01 each | | | | December 31, 2024 and June 30, 2025 | 10,000,000,000 | 100,000,000 | | **Issued and fully paid:** | | | | Ordinary shares of HKD0.01 each | | | | December 31, 2024 and June 30, 2025 | 1,000,000,000 | 1,742,159 | [16 Other Reserves](index=15&type=section&id=16%20Other%20Reserves) Total other reserves slightly decreased to **21,623,843 SGD** as at June 30, 2025, due to exchange differences from foreign operations Movement in Other Reserves Attributable to Owners of the Company (As at June 30) | Item | Share Premium (SGD) | Other Reserves (SGD) | Exchange Fluctuation Reserve (SGD) | Total (SGD) | | :--- | :--- | :--- | :--- | :--- | | January 1, 2024 | 2,000,000 | 19,853,646 | (163,808) | 21,689,838 | | Exchange differences arising from translation of foreign operations | – | – | (62,699) | (62,699) | | Exchange differences realised on derecognition of a subsidiary | – | – | 11,511 | 11,511 | | December 31, 2024 and January 1, 2025 | 2,000,000 | 19,853,646 | (214,996) | 21,638,650 | | Exchange differences arising from translation of foreign operations | – | – | (14,807) | (14,807) | | **June 30, 2025** | **2,000,000** | **19,853,646** | **(229,803)** | **21,623,843** | [17 Dividends](index=15&type=section&id=17%20Dividends) No dividends were paid, declared, or proposed during the period, nor have any been declared since the end of the interim period[38](index=38&type=chunk) [18 Capital Commitments](index=15&type=section&id=18%20Capital%20Commitments) As at June 30, 2025, the Group had no capital commitments[39](index=39&type=chunk) [19 Performance Guarantees](index=15&type=section&id=19%20Performance%20Guarantees) The Group held performance guarantees totaling **3,402,071 SGD** for project completion and **300,000 SGD** for foreign worker employment regulations - The Group has performance guarantees issued by banks and insurance companies for the completion of works amounting to **3,402,071 SGD** (December 31, 2024: **3,559,071 SGD**)[40](index=40&type=chunk) - The Group has performance guarantees issued under Regulation 12 of the Employment of Foreign Manpower (Work Passes) Regulations amounting to **300,000 SGD** (December 31, 2024: **305,000 SGD**)[40](index=40&type=chunk) [20 Events After the Reporting Period](index=15&type=section&id=20%20Events%20After%20the%20Reporting%20Period) As at the date of this announcement, there have been no significant events after the reporting period for the Company or the Group[41](index=41&type=chunk) Management Discussion and Analysis [Overall Review and Business Review](index=16&type=section&id=Overall%20Review%20and%20Business%20Review) The Group is a leading demolition service provider in Singapore, holding licenses for unlimited bidding, with 10 projects completed and 7 ongoing in H1 2025 - The Group is an established and leading demolition service provider in Singapore, operating in both public and private sectors for over 30 years[43](index=43&type=chunk) - The Group holds CR03 "Demolition" workhead (Single Grade), CW01 "General Building" workhead (C3 grade), and CW02 "Civil Engineering" workhead (C1 grade) licenses, with the Single Grade license and General Builder Class 1 license allowing the Group to tender for demolition projects of unlimited tender/contract value[44](index=44&type=chunk) - In H1 2025, the Group completed ten projects, including three factory buildings, three commercial buildings, two industrial facilities, one power plant, and one reinstatement of temporary occupation land[45](index=45&type=chunk) - As at June 30, 2025, the Group had seven ongoing demolition projects, including three factory building projects, one industrial building, one commercial building, one school building, and one residential building[48](index=48&type=chunk) [Outlook and Prospects](index=20&type=section&id=Outlook%20and%20Prospects) Singapore's construction sector is booming, with **47 billion to 53 billion SGD** in contracts projected for 2025, driving demolition demand - The Building and Construction Authority of Singapore forecasts **47 billion SGD to 53 billion SGD** in construction contracts to be awarded in 2025, indicating sustained demand for public infrastructure projects[52](index=52&type=chunk) - Demand in the demolition industry has significantly increased, with government incentives, such as grants for adopting advanced demolition techniques and methods, further stimulating growth in the sector[54](index=54&type=chunk) - The Group has focused on capitalizing on these opportunities, advancing its strategic projects, and exploring new partnerships to enhance shareholder value[55](index=55&type=chunk) [Revenue](index=22&type=section&id=Revenue_MDA) In H1 2025, the Group's revenue increased 19.3% to approximately **16.7 million SGD**, primarily from demolition projects - The Group's revenue for H1 2025 was approximately **16.7 million SGD**, an increase of approximately 19.3% from approximately **14.0 million SGD** in H1 2024, due to the completion of more projects contributing higher revenue during the period[56](index=56&type=chunk) Revenue Breakdown by Nature of Work Undertaken (For the six months ended June 30) | Item | 2025 (thousand SGD) | 2024 (thousand SGD) | | :--- | :--- | :--- | | Net contract amount | 8,151 | 2,772 | | Proceeds from disposal of scrap materials | 7,590 | 9,931 | | Proceeds from earth disposal | 469 | 127 | | Other revenue | 528 | 1,159 | | **Total Revenue** | **16,738** | **13,989** | [Cost of Sales and Services](index=23&type=section&id=Cost%20of%20Sales%20and%20Services) Cost of sales and services increased 15.1% to approximately **12.2 million SGD** in H1 2025, mainly due to increased subcontractor involvement - The Group's cost of sales and services increased by 15.1% from approximately **10.6 million SGD** in H1 2024 to approximately **12.2 million SGD** in H1 2025[60](index=60&type=chunk) - This increase was primarily due to increased subcontractor involvement in projects[60](index=60&type=chunk) Cost of Sales and Services Breakdown (For the six months ended June 30) | Item | 2025 (thousand SGD) | 2024 (thousand SGD) | | :--- | :--- | :--- | | Direct labour costs | 2,042 | 1,681 | | Depreciation | 1,376 | 1,155 | | Raw materials, consumables and other expenses | 2,953 | 2,973 | | Subcontractor fees | 4,537 | 1,986 | | Repair and maintenance expenses | 364 | 487 | | Transportation expenses | 86 | 1,295 | | Others | 823 | 1,008 | | **Total Cost of Sales and Services** | **12,181** | **10,585** | [Gross Profit and Gross Profit Margin](index=23&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) Gross profit increased 35.3% to **4.6 million SGD** in H1 2025, with the gross profit margin rising to 27.2% due to improved contract margins - The Group's gross profit increased by approximately **1.2 million SGD** or 35.3% from approximately **3.4 million SGD** in H1 2024 to approximately **4.6 million SGD** in H1 2025[61](index=61&type=chunk) - The Group recorded a gross profit margin of approximately **27.2%** in H1 2025, compared to **24.3%** in H1 2024[61](index=61&type=chunk) - The increase in the Group's gross profit margin was due to improved profit margins on contract amounts[61](index=61&type=chunk) [Administrative Expenses](index=23&type=section&id=Administrative%20Expenses) Administrative expenses increased 6.1% to approximately **5.2 million SGD** in H1 2025, mainly comprising staff costs and depreciation - The Group's administrative expenses in H1 2025 were approximately **5.2 million SGD**, an increase of **0.3 million SGD** or 6.1% from approximately **4.9 million SGD** in H1 2024[62](index=62&type=chunk) - Administrative expenses primarily include staff costs and depreciation costs for the Group's property, office equipment, and motor vehicles[62](index=62&type=chunk) [Other Income](index=24&type=section&id=Other%20Income_MDA) Other income remained stable at **0.2 million SGD** in H1 2025, primarily from interest income and government grants - In H1 2025, the Group's other income was **0.2 million SGD**, showing no significant change compared to H1 2024[63](index=63&type=chunk) - The main sources of income during the period were interest income from bank deposits and government grants[63](index=63&type=chunk) [Other Gains](index=24&type=section&id=Other%20Gains_MDA) Other gains decreased to **0.1 million SGD** in H1 2025, mainly due to reduced gains from asset disposal - In H1 2025, the Group's other gains were **0.1 million SGD** (H1 2024: **0.2 million SGD**)[64](index=64&type=chunk) - This decrease was primarily due to reduced gains from the disposal of property, plant, and equipment[64](index=64&type=chunk) [Finance Costs](index=24&type=section&id=Finance%20Costs_MDA) Finance costs remained stable at approximately **0.2 million SGD** in H1 2025 compared to H1 2024[65](index=65&type=chunk) [Income Tax Expense](index=24&type=section&id=Income%20Tax%20Expense_MDA) Income tax expense was **87,000 SGD** in H1 2025, compared to a **32,000 SGD** credit in H1 2024, due to current tax and deferred tax asset recognition - In H1 2025, the Group's income tax expense was **87,000 SGD** (H1 2024: income tax credit of **32,000 SGD**)[66](index=66&type=chunk) - This increase was primarily due to current tax expense in Singapore and the recognition of deferred tax assets for tax losses during the period[66](index=66&type=chunk) [Loss Attributable to Owners of the Company](index=24&type=section&id=Loss%20Attributable%20to%20Owners%20of%20the%20Company) Loss attributable to owners of the Company narrowed to approximately **0.7 million SGD** in H1 2025 from **1.3 million SGD** in H1 2024[67](index=67&type=chunk) [Capital Structure, Liquidity and Financial Resources](index=24&type=section&id=Capital%20Structure%2C%20Liquidity%20and%20Financial%20Resources) The Group maintains a robust financial position with stable cash flow, recording a net cash position and net current assets of approximately **25.9 million SGD** - The Group's capital structure comprises debt (including borrowings and obligations under finance leases), net of bank deposits, bank balances, cash, and equity attributable to owners of the Group (including share capital and reserves)[68](index=68&type=chunk) - The Group recorded a net cash position as at June 30, 2025 and December 31, 2024, thus the gearing ratio, calculated as debt divided by total equity, is not applicable[70](index=70&type=chunk) - The Group's net current assets were approximately **25.9 million SGD**, a decrease of approximately **0.4 million SGD** or 1.5% from **26.3 million SGD** as at December 31, 2024[72](index=72&type=chunk) - The Group's cash and cash equivalents as at June 30, 2025 were approximately **13.2 million SGD**, compared to **14.1 million SGD** as at December 31, 2024[72](index=72&type=chunk) [Treasury Policy](index=25&type=section&id=Treasury%20Policy) The Group's financing and treasury activities are centrally managed, with bank borrowings in SGD at floating rates, and no speculative derivative transactions - The Group's financing and treasury activities are centrally managed and controlled at the corporate level[71](index=71&type=chunk) - The Company's bank borrowings are denominated in SGD and bear interest at floating rates[71](index=71&type=chunk) - It is the Company's policy not to enter into derivative transactions for speculative purposes[71](index=71&type=chunk) [Contingent Liabilities](index=26&type=section&id=Contingent%20Liabilities) As at June 30, 2025, the Group had no significant contingent liabilities or pending litigations[73](index=73&type=chunk) [Capital Commitments](index=26&type=section&id=Capital%20Commitments_MDA) As at June 30, 2025, the Group had no capital commitments[74](index=74&type=chunk) [Significant Acquisitions or Disposals of Subsidiaries and Affiliated Companies](index=26&type=section&id=Significant%20Acquisitions%20or%20Disposals%20of%20Subsidiaries%20and%20Affiliated%20Companies) In H1 2025, the Group did not undertake any significant acquisitions or disposals of subsidiaries, associates, or joint ventures[75](index=75&type=chunk) [Future Plans for Material Investments or Capital Assets](index=26&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) As at June 30, 2025, the Group had no specific plans for material investments or capital assets for the coming year[76](index=76&type=chunk) [Employee Information and Remuneration Policy](index=26&type=section&id=Employee%20Information%20and%20Remuneration%20Policy) As at June 30, 2025, the Group had 130 employees, with remuneration based on market practice and an adopted share option scheme - As at June 30, 2025, the Group had 130 employees, a decrease of one from the number of employees as at December 31, 2024[77](index=77&type=chunk) - Remuneration offered to employees generally includes salaries and bonuses, determined with reference to market practice and individual employee's performance, qualifications, and position[77](index=77&type=chunk) - The Company has adopted a share option scheme, under which share options may be granted to directors and eligible employees as incentives[77](index=77&type=chunk) [Results and Interim Dividend](index=26&type=section&id=Results%20and%20Interim%20Dividend) The Group's H1 2025 results are presented in the financial statements, and no interim dividend is recommended - The Group's results for H1 2025 and its financial position are set out in the unaudited condensed consolidated financial statements on pages 1 to 4 of this announcement[78](index=78&type=chunk) - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[79](index=79&type=chunk) [Material Investments Held](index=27&type=section&id=Material%20Investments%20Held) As at June 30, 2025, the Group held no material investments other than those disclosed in this interim results announcement[80](index=80&type=chunk) [Pledge of the Group's Assets](index=27&type=section&id=Pledge%20of%20the%20Group's%20Assets) Leasehold land and buildings with a carrying value of approximately **4.0 million SGD** were pledged as collateral for credit facilities - As at June 30, 2025, the Group's leasehold land and buildings with a carrying value of approximately **4.0 million SGD** (December 31, 2024: **4.2 million SGD**) were pledged to a licensed bank as collateral for credit facilities granted to the Group[81](index=81&type=chunk) [Foreign Exchange Risk](index=27&type=section&id=Foreign%20Exchange%20Risk) The Group operates primarily in Singapore, with most income and expenses in SGD, thus incurring no significant foreign exchange risk - The Group operates its business in Singapore, and the majority of its income and expenses are denominated in SGD, which is the Company's functional currency[82](index=82&type=chunk) - The Group does not have significant foreign exchange risk and does not use any financial instruments for hedging[82](index=82&type=chunk) [Use of Proceeds from Listing](index=27&type=section&id=Use%20of%20Proceeds%20from%20Listing) Net listing proceeds of approximately **77.5 million HKD** were utilized as planned, with **2.5 million HKD** remaining for excavator purchases - The net proceeds from the listing, approximately **77.5 million HKD**, have been utilized in accordance with the intended allocation set out in the prospectus[83](index=83&type=chunk) Allocation Details of Net Proceeds from Listing and Utilized Net Proceeds (For H1 2025) | Use of Net Proceeds | Intended Amount (thousand HKD) | Unutilized Net Proceeds as at beginning of H1 2025 (thousand HKD) | Net Proceeds utilized during H1 2025 (thousand HKD) | Unutilized Net Proceeds as at end of H1 2025 (thousand HKD) | | :--- | :--- | :--- | :--- | :--- | | Purchase of excavators and accessories to strengthen the fleet | 51,200 | 10,988 | 8,499 | 2,489 | | Repayment of bank borrowings | 13,500 | – | – | – | | Recruitment of additional staff | 9,100 | – | – | – | | Engagement of professional consultants to review internal management systems | 2,200 | 668 | 668 | – | | General working capital of the Group | 1,500 | – | – | – | | **Total** | **77,500** | **11,656** | **9,167** | **2,489** | - As at June 30, 2025, the unutilized net proceeds of approximately **2.5 million HKD** are expected to be fully utilized for the purchase of excavators of different capacities and their accessories on or before December 31, 2025[84](index=84&type=chunk) Other Information [Corporate Governance](index=29&type=section&id=Corporate%20Governance) The Company maintains high corporate governance standards, complying with Listing Rules, with the Chairman and CEO roles combined for effective management - The Company has adopted the code provisions set out in the Corporate Governance Code contained in Appendix C1 to the Listing Rules[85](index=85&type=chunk) - The Company has complied with all code provisions of the Corporate Governance Code for H1 2025, except for a deviation from code provision C.2.1 regarding the segregation of the roles of chairman and chief executive[85](index=85&type=chunk) - The Board believes that Mr. Tan's dual role as Chairman and Chief Executive Officer allows for efficient management and business development, serving the Group's best interests, and the presence of three independent non-executive directors enhances the Board's independence[85](index=85&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company or any Associated Corporation](index=30&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20or%20any%20Associated%20Corporation) As at H1 2025, Mr. Tan Chee Beng held a **50.56%** long position in the Company's shares, with no other directors holding relevant interests Directors' and Chief Executive's Long Positions in Shares (As at end of H1 2025) | Name | Capacity/Nature of Interest | Number of Shares | Percentage of Equity Interest | | :--- | :--- | :--- | :--- | | Mr. Tan Beng Chee | Interest in controlled corporation (Note 2) | 341,700,000 | 34.17% | | Mr. Tan Beng Chee | Spouse's interest (Note 3) | 163,900,000 | 16.39% | | **Total** | | **505,600,000** | **50.56%** | - Mr. Tan beneficially owns all issued shares of TCB Investment Holdings Limited, which holds 34.17% of the shares[88](index=88&type=chunk) - Mr. Tan is the spouse of Ms. Lee Peck Kim, who holds 16.39% of the shares[88](index=88&type=chunk) - As at the end of H1 2025, no director or chief executive of the Company had or was deemed to have any interests or short positions in the shares, underlying shares, or debentures of the Company or its associated corporations as recorded in the register required under Section 352 of the Securities and Futures Ordinance[89](index=89&type=chunk) [Major Shareholders' Interests and Short Positions in Shares and Underlying Shares](index=31&type=section&id=Major%20Shareholders'%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares) Major shareholders TCB Investment Holdings Limited and K Luxe Holdings Limited held **34.17%** and **16.39%** long positions, respectively, as at H1 2025 Major Shareholders' Long Positions in Shares (As at end of H1 2025) | Name/Company Name | Capacity/Nature of Interest | Number of Shares | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | TCB Investment Holdings Limited | Beneficial owner | 341,700,000 | 34.17% | | K Luxe Holdings Limited | Beneficial owner | 163,900,000 | 16.39% | | Ms. Lee Peck Kim | Interest in controlled corporation (Note 1) | 505,600,000 | 50.56% | | Ms. Lee Peck Kim | Spouse's interest (Note 2) | 505,600,000 | 50.56% | - Ms. Lee beneficially owns all issued shares of K Luxe, which holds 16.39% of the shares[90](index=90&type=chunk) - Ms. Lee is the spouse of Mr. Tan and is therefore deemed or taken to be interested in the shares in which Mr. Tan has an interest[90](index=90&type=chunk) [Rights to Acquire Shares or Debentures by Directors](index=32&type=section&id=Rights%20to%20Acquire%20Shares%20or%20Debentures%20by%20Directors) In H1 2025, no arrangements were made for directors to acquire shares or debentures of the Company or any other body corporate[92](index=92&type=chunk) [Directors' Interests in Competing Business](index=32&type=section&id=Directors'%20Interests%20in%20Competing%20Business) As at the date of this announcement, no director or controlling shareholder held any competing business or interest with the Group's operations[93](index=93&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) In H1 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[94](index=94&type=chunk) [Share Option Scheme](index=32&type=section&id=Share%20Option%20Scheme) The Company adopted a share option scheme in 2019 to attract talent, with **100,000,000** shares available, but no options were granted or exercised - The Company conditionally approved and adopted a share option scheme on October 15, 2019, which will be valid for a period of ten years from the adoption date[95](index=95&type=chunk) - The share option scheme aims to attract and retain the best personnel, provide additional incentives to the Group's employees, directors, consultants, advisors, distributors, contractors, suppliers, agents, customers, business partners, and service providers, and promote the success of the Group's business[95](index=95&type=chunk) - As at the beginning and end of H1 2025, the total number of shares of the Company available for issue under the share option scheme was **100,000,000** shares, representing 10% of the Company's issued share capital[96](index=96&type=chunk) - As at the end of H1 2025, no share options had been granted, exercised, cancelled, or lapsed under the share option scheme, and there were no outstanding share options[96](index=96&type=chunk) [Standard of Dealings by Directors in Securities](index=33&type=section&id=Standard%20of%20Dealings%20by%20Directors%20in%20Securities) The Company adopted the Listing Rules' Model Code for directors' securities transactions, with all directors confirming compliance in H1 2025[97](index=97&type=chunk) [Handling and Dissemination of Inside Information](index=33&type=section&id=Handling%20and%20Dissemination%20of%20Inside%20Information) The Group strictly adheres to SFO and Listing Rules for inside information disclosure, prohibiting unauthorized use and ensuring prompt reporting to the Board - The Group recognizes its obligations under the provisions of Part XIVA of the Securities and Futures Ordinance and the Listing Rules regarding the disclosure of inside information to the public[98](index=98&type=chunk) - The Group strictly prohibits its directors and employees from unauthorized use of confidential or inside information for their own benefit or that of others[98](index=98&type=chunk) - Any inside information and any information that may constitute inside information will be promptly identified, assessed, and reported to the Board for a decision on whether disclosure is required[98](index=98&type=chunk) [Audit Committee](index=33&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, reviewed and approved the Group's H1 2025 interim financial results - The Audit Committee comprises three independent non-executive directors, namely Mr. Leung Yau Wan, Mr. Leung Kei Wai, and Mr. Wee Chorng Kien[99](index=99&type=chunk) - Mr. Leung Yau Wan serves as the Chairman of the Audit Committee and possesses the appropriate professional qualifications and financial expertise as required by Rules 3.10(2) and 3.21 of the Listing Rules[99](index=99&type=chunk) - The Group's interim financial results for the six months ended June 30, 2025, are unaudited but have been reviewed and approved by the Audit Committee[100](index=100&type=chunk) [By Order of the Board](index=34&type=section&id=By%20Order%20of%20the%20Board) This announcement was issued by Chairman and CEO TAN CHEE BENG on August 29, 2025, with the Board comprising four executive and three independent non-executive directors - This announcement was issued by TAN CHEE BENG, Chairman and Chief Executive Officer of BENG SOON MACHINERY HOLDINGS LIMITED, on August 29, 2025[102](index=102&type=chunk)[103](index=103&type=chunk) - The Company's Board of Directors comprises four executive directors (Mr. Tan Chee Beng, Mr. Tan Wei Leong, Ms. Tang Ling Ling, and Mr. Cheong Kam Fai) and three independent non-executive directors (Mr. Leung Yau Wan, Mr. Leung Kei Wai, and Mr. Wee Chorng Kien)[103](index=103&type=chunk)

XINTE ENERGY CO., LTD. 新特能源股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：1799） 截 至2025年6月30日止六個月之 中期業績公告 財務摘要 新特能源股份有限公司（「本公司」）董事會（「董事會」）欣然宣佈本公司及其附 屬公司（「本集團」）截至2025年6月30日止六個月（「報告期」）之未經審核合併中 期業績，連同2024年同期的比較數字。該業績乃按照中華人民共和國（「中國」） 企業會計準則以及《香港聯合交易所有限公司證券上市規則》（「上市規則」）的 披露要求而編製。 – 1 – ‧ 截至2025年6月30日止六個月，本集團營業收入為人民幣7,310.83百萬元， 較上年同期下降37.74%。 ‧ 截至2025年6月30日止六個月，本集團虧損總額為人民幣235.22百萬元， 上年同期虧損總額為人民幣941.21百萬元。 ‧ 截至2025年6月30日止六個月，本集團歸屬於上市公司股東的淨虧損為 人民幣256.29百萬元，上年同期歸屬於上市公司股東的淨虧損為人民幣 887.02百萬元。 ‧ 截至2025年6月30日止六個月，基本每股虧損為人民幣0.18元，上年 ...

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 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。 K2 F&B HOLDINGS LIMITED （於開曼群島註冊成立的有限公司） | | | | | | | | | | | | | | | 截 | | | 至6月30日 | 止 | 六 | | 個 月 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | 2025年 | | | | 2024年 | | | | | | | ...

[Financial Summary](index=1&type=section&id=Financial%20Summary) [Overview of Financial Summary](index=1&type=section&id=Financial%20Summary_Overview) The Group's turnover decreased by 2.5% year-on-year, with profit attributable to equity holders declining by 29.0%, despite a 61.0% Q2 sequential increase, and EPS was RMB 39.71 cents Key Financial Indicators | Indicator | H1 2025 (CNY) | H1 2024 (CNY) | YoY Change | | :--- | :--- | :--- | :--- | | Turnover | 11.573 billion | 11.867 billion | -2.5% | | Profit attributable to equity holders of the Company | 1.894 billion | 2.668 billion | -29.0% | | Basic and diluted earnings per share | 39.71 cents | 55.92 cents | -29.0% | - Profit attributable to equity holders of the Company in the second quarter increased by **61.0%** quarter-on-quarter compared to the first quarter[4](index=4&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) During the reporting period, the Group's turnover was RMB 11.573 billion, a 2.5% year-on-year decrease, with operating costs declining, leading to significant gross profit growth, but overall profit and comprehensive income decreased due to increased income tax expense and changes in other comprehensive income Key Financial Metrics | Indicator | H1 2025 (RMB Thousand) | H1 2024 (RMB Thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Turnover | 11,573,025 | 11,866,805 | -2.5% | | Operating costs | (8,032,727) | (8,910,497) | -9.8% | | Gross profit | 3,834,078 | 2,662,528 | +43.9% | | Profit before tax | 3,388,650 | 2,409,328 | +40.6% | | Income tax expense | (313,650) | (553,847) | -43.4% | | Profit for the period | 2,834,803 | 2,095,678 | +35.3% | | Total comprehensive income for the period | 3,156,296 | 1,963,148 | +60.8% | - Profit for the period attributable to equity holders of the Company was **RMB 1,894,278 thousand**, a **29.0%** year-on-year decrease[6](index=6&type=chunk) [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets reached RMB 84.406 billion, a 4.15% increase from the end of 2024, with both non-current and current assets growing, notably a significant increase in cash and cash equivalents, while total liabilities increased, but the net debt-to-equity ratio decreased Key Financial Position Metrics | Indicator | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | Change | | :--- | :--- | :--- | :--- | | Total assets | 84,405,848 | 81,042,317 | +4.15% | | Non-current assets | 71,832,079 | 71,506,603 | +0.45% | | Current assets | 12,573,769 | 9,535,714 | +31.87% | | Total liabilities | 44,601,842 | 42,057,160 | +6.05% | | Total equity | 39,804,006 | 38,985,157 | +2.09% | | Cash and cash equivalents | 7,655,589 | 5,661,734 | +35.22% | - The net debt-to-equity ratio decreased from **78%** at the end of 2024 to **75%** as of June 30, 2025, primarily due to an increase in cash and cash equivalents[94](index=94&type=chunk) [Notes](index=6&type=section&id=Notes) [Company Information](index=6&type=section&id=Company%20Information) The Company is a joint stock limited company incorporated in China, primarily engaged in investment holding, oil product transportation, vessel chartering, LNG, LPG, and chemical transportation, with China COSCO Shipping Corporation Limited as its ultimate parent company, listed on the Shanghai Stock Exchange and Hong Kong Stock Exchange - The Group's principal businesses include oil product transportation, vessel chartering, LNG transportation, LPG transportation, and chemical transportation[15](index=15&type=chunk) - China COSCO Shipping Corporation Limited is the ultimate parent company of the Company[10](index=10&type=chunk) - The Company's A shares and H shares are listed on the Shanghai Stock Exchange and the Hong Kong Stock Exchange, respectively[10](index=10&type=chunk) [Basis of Preparation and Accounting Policies](index=6&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) The interim financial information is prepared in accordance with HKAS 34 and the Listing Rules, using the historical cost basis, and during the reporting period, the Group completed a business combination under common control, integrating the controlling shareholder's chemical logistics supply chain business, with the acquired entities' operating results restated retrospectively, and adopted amendments to HKFRS for the first time, which had no significant impact - The interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 and Appendix D2 of the Listing Rules, and measured on a historical cost basis[13](index=13&type=chunk)[18](index=18&type=chunk) - The Group approved the integration of the controlling shareholder's chemical logistics supply chain business, involving Dalian Investment and COSCO Shipping (Shanghai) businesses, on October 14, 2024, and completed the acquisition on October 31, 2024, which is considered a business combination under common control[14](index=14&type=chunk)[16](index=16&type=chunk) - The operating results of the acquired entities have been retrospectively restated in the condensed consolidated statement of profit or loss and other comprehensive income, condensed consolidated statement of financial position, etc[17](index=17&type=chunk) [Estimates](index=8&type=section&id=Estimates) The preparation of interim financial information involves management's judgments, estimates, and assumptions regarding the application of accounting policies and the amounts of assets and liabilities, with key estimates relating to the estimated useful lives, residual values, and depreciation expenses of vessels, which are adjusted based on business models, asset management policies, industry practices, and market changes - Management is required to make judgments and estimates regarding the estimated useful lives, residual values, and depreciation expenses of vessels, which affect depreciation expenses[22](index=22&type=chunk) - Estimates for the estimated useful lives and residual values of vessels refer to factors such as business models, asset management policies, industry practices, expected usage, maintenance, and technical or commercial obsolescence[22](index=22&type=chunk) [Revenue and Segment Information](index=8&type=section&id=Revenue%20and%20Segment%20Information) The Group's revenue and segment information are presented by business segments (oil product transportation, LNG transportation, LPG transportation, chemical transportation) and geographical segments (domestic, international), with oil product transportation remaining the primary revenue source, but LNG transportation showing significant growth in turnover and performance - The Group's business segments include oil product transportation (including vessel chartering), LNG transportation, LPG transportation, and chemical transportation[25](index=25&type=chunk) Revenue and Performance by Principal Business | Business Segment | H1 2025 Turnover (RMB Thousand) | H1 2024 Turnover (RMB Thousand) | YoY Turnover Change | H1 2025 Performance (RMB Thousand) | H1 2024 Performance (RMB Thousand) | YoY Performance Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Oil Product Transportation | 10,028,775 | 10,613,285 | -5.5% | 1,973,164 | 3,271,286 | -39.7% | | LNG Transportation | 1,244,020 | 958,442 | +29.8% | 617,159 | 498,578 | +23.8% | | LPG Transportation | 140,316 | 110,960 | +26.5% | 29,516 | 24,335 | +21.3% | | Chemical Transportation | 159,914 | 184,118 | -13.1% | 42,689 | 39,879 | +7.0% | | **Total** | **11,573,025** | **11,866,805** | **-2.5%** | **2,662,528** | **3,834,078** | **-30.6%** | Revenue and Performance by Geographical Segment | Geographical Segment | H1 2025 Turnover (RMB Thousand) | H1 2024 Turnover (RMB Thousand) | YoY Turnover Change | H1 2025 Performance (RMB Thousand) | H1 2024 Performance (RMB Thousand) | YoY Performance Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Domestic | 2,889,637 | 3,026,155 | -4.5% | 695,845 | 738,509 | -5.8% | | International | 8,683,388 | 8,840,650 | -1.8% | 1,966,683 | 3,095,569 | -36.5% | | **Total** | **11,573,025** | **11,866,805** | **-2.5%** | **2,662,528** | **3,834,078** | **-30.6%** | [Business Segments](index=9&type=section&id=Business%20Segments) Oil product transportation business experienced declines in both turnover and performance, while LNG transportation achieved significant growth, and LPG transportation also maintained growth, with chemical transportation turnover decreasing but performance increasing - Oil product transportation turnover decreased by **5.5%** year-on-year, and performance decreased by **39.7%** year-on-year[28](index=28&type=chunk) - LNG transportation turnover significantly increased by **29.8%** year-on-year, and performance increased by **23.8%**[28](index=28&type=chunk) - Chemical transportation turnover decreased by **13.1%** year-on-year, but performance increased by **7.0%** year-on-year[28](index=28&type=chunk) [Geographical Segments](index=10&type=section&id=Geographical%20Segments) Both domestic and international transportation experienced declines in turnover and performance, with international transportation showing a larger decrease in performance - Domestic transportation turnover decreased by **4.5%** year-on-year, and performance decreased by **5.8%**[32](index=32&type=chunk) - International transportation turnover decreased by **1.8%** year-on-year, and performance decreased by **36.5%**[32](index=32&type=chunk) [Other Income and Gains, Net](index=11&type=section&id=Other%20Income%20and%20Gains,%20Net) During the reporting period, the Group's other income and gains, net, amounted to RMB 387 million, a significant year-on-year increase of 61.1%, primarily driven by increased subsidy income and gains from disposal of property, plant, and equipment Other Income and Gains, Net | Item | H1 2025 (RMB Thousand) | H1 2024 (RMB Thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Total other income | 286,874 | 167,634 | +71.1% | | Subsidies | 176,501 | 46,538 | +279.3% | | Total other gains, net | 100,377 | 72,733 | +38.0% | | Gains/(losses) on disposal of property, plant and equipment, net | 74,191 | (19) | Significant increase | | **Total** | **387,251** | **240,367** | **+61.1%** | - Subsidy income significantly increased from **RMB 46,538 thousand** in H1 2024 to **RMB 176,501 thousand** in H1 2025[34](index=34&type=chunk) [Finance Costs](index=12&type=section&id=Finance%20Costs) During the reporting period, the Group's finance costs were RMB 708 million, a slight year-on-year increase of 1.7%, with total interest expenses increasing, but partially offset by a corresponding increase in capitalized interest Finance Costs | Item | H1 2025 (RMB Thousand) | H1 2024 (RMB Thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Interest expense on bank and other loans and borrowings | 712,677 | 753,058 | -5.4% | | Interest on lease liabilities | 24,907 | 23,100 | +7.8% | | Exchange losses/(gains), net | 25,072 | (2,102) | Significant change | | Less: Capitalized interest | (29,245) | (26,179) | +11.7% | | **Total finance costs** | **707,673** | **695,740** | **+1.7%** | - The capitalization rate for interest expenses on borrowings for vessel construction ranged from **2.25% to 6.19%**, a decrease compared to the same period last year[36](index=36&type=chunk) [Income Tax Expense](index=12&type=section&id=Income%20Tax%20Expense) During the reporting period, the Group's income tax expense was RMB 314 million, a significant year-on-year decrease of 43.4%, primarily due to a reduction in current income tax provision in China, as well as an increase in deferred tax assets and a decrease in deferred tax liabilities Income Tax Expense | Item | H1 2025 (RMB Thousand) | H1 2024 (RMB Thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Current income tax - China | 216,606 | 468,902 | -53.8% | | Deferred income tax assets (increase)/decrease | (33,508) | 18,448 | Significant change | | Deferred income tax liabilities increase | 122,865 | 154,975 | -20.8% | | **Total income tax expense** | **313,650** | **553,847** | **-43.4%** | - The Group continues to assess the tax impact of the OECD Pillar Two legislative template and currently has no significant current income tax risks in relevant jurisdictions[39](index=39&type=chunk)[40](index=40&type=chunk) [Earnings Per Share](index=13&type=section&id=Earnings%20Per%20Share) During the reporting period, the Company's basic and diluted earnings per share were both RMB 39.71 cents, a decrease from RMB 55.92 cents in the prior year, with diluted earnings equal to basic earnings as the exercise price of share options was higher than the average market price of shares Earnings Per Share | Indicator | H1 2025 (RMB Cents/Share) | H1 2024 (RMB Cents/Share) | YoY Change | | :--- | :--- | :--- | :--- | | Basic earnings per share | 39.71 | 55.92 | -29.0% | | Diluted earnings per share | 39.71 | 55.92 | -29.0% | - Diluted earnings per share are equal to basic earnings per share, as the exercise price of share options was higher than the average market price of shares, resulting in no dilutive effect[42](index=42&type=chunk) [Basic Earnings](index=13&type=section&id=Basic%20Earnings) Basic earnings per share are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of ordinary shares outstanding during the period - Profit attributable to equity holders of the Company was **RMB 1,894,278 thousand**, with a weighted average of **4,770,776,395** ordinary shares outstanding[41](index=41&type=chunk) [Diluted Earnings](index=13&type=section&id=Diluted%20Earnings) Diluted earnings are the same as basic earnings because no share options were assumed to be exercised during the period, as their exercise price was higher than the average market price of shares - No share options were assumed to be exercised when calculating diluted earnings per share, as their exercise price was higher than the average market price of shares[42](index=42&type=chunk) [Dividends](index=13&type=section&id=Dividends) The Company decided not to implement an interim profit distribution for the first half of 2025, whereas an interim dividend of RMB 0.22 per share was distributed in the first half of 2024, and the 2024 final dividend of RMB 0.21 per share was approved at the AGM on June 30, 2025, but not yet paid during the reporting period - The Company decided not to implement an interim profit distribution for the first half of 2025[43](index=43&type=chunk) - An interim dividend of **RMB 0.22 per share** was distributed in the first half of 2024[43](index=43&type=chunk) - The 2024 final dividend of **RMB 0.21 per share** was approved but not yet paid during the reporting period[43](index=43&type=chunk) [Management Discussion and Analysis](index=14&type=section&id=Management%20Discussion%20and%20Analysis) [Description of Principal Businesses, Operating Model, and Industry Conditions During the Reporting Period](index=14&type=section&id=Description%20of%20Principal%20Businesses,%20Operating%20Model,%20and%20Industry%20Conditions%20During%20the%20Reporting%20Period) The Group primarily engages in the maritime transportation of bulk liquid dangerous goods such as crude oil, refined oil, LNG, LPG, and chemicals, with oil tanker and LNG transportation as its core businesses, operating in a cyclical, volatile, capital-intensive, and strictly regulated shipping industry, maintaining a leading position in global oil tanker capacity and China's oil and gas import transportation, while actively expanding its LPG and chemical transportation businesses - The Group's core businesses are oil tanker transportation and LNG transportation, providing maritime transportation services for bulk liquid dangerous goods such as crude oil, refined oil, LNG, LPG, and chemicals[44](index=44&type=chunk) - The shipping industry is characterized by strong cyclicality, high freight rate volatility, high capital intensity, and a strict regulatory environment[45](index=45&type=chunk)[46](index=46&type=chunk) - The Group ranks first globally in oil tanker capacity, owning and controlling **157** oil tankers with **23.448 million DWT**; its LNG fleet operates **52** vessels with **8.763 million CBM**[48](index=48&type=chunk)[51](index=51&type=chunk) [Industry and Its Characteristics](index=14&type=section&id=Industry%20and%20Its%20Characteristics) The shipping industry, in which the Group operates, is a core component of global economic activity, responsible for transporting most oil, natural gas, and chemical products, characterized by strong cyclicality, high freight rate volatility, high capital intensity, and strict regulation, demanding extremely high standards for transportation equipment and safety measures - The shipping industry is capital-intensive, requiring significant capital investment for vessel construction, maintenance, and operation, with a longer return on investment cycle[46](index=46&type=chunk) - LNG transportation demands extremely high standards for equipment insulation and safety measures, with LNG vessels recognized internationally as "three-high" products (high technology, high added value, high reliability)[46](index=46&type=chunk) - The shipping industry is subject to strict regulation by organizations such as the International Maritime Organization (IMO), increasing operational costs and complexity[46](index=46&type=chunk) [The Group's Competitive Position and Operating Model in the Industry](index=16&type=section&id=The%20Group's%20Competitive%20Position%20and%20Operating%20Model%20in%20the%20Industry) The Group ranks first globally in oil tanker capacity with a comprehensive fleet, operating oil product transportation through various methods including spot, time charter, COA contracts, and POOL operations; in LNG transportation, the Group is a leader in the Chinese market and a significant global participant, with its LNG fleet primarily serving long-term charters for stable revenue; LPG and chemical transportation businesses expand the Group's energy transportation footprint, leveraging COSCO Shipping Group's resources to provide full-chain logistics solutions - The Group's oil tanker capacity ranks first globally, owning and controlling **157** oil tankers with **23.448 million DWT**, making it the world's most comprehensive oil tanker owner by vessel type[48](index=48&type=chunk) - The Group is a leader in China's LNG transportation business, with all operational LNG vessels serving long-term charters, ensuring relatively stable revenue[51](index=51&type=chunk) - LPG and chemical transportation businesses have expanded the Group's operational footprint in energy transportation and extended into the energy and chemical logistics supply chain[54](index=54&type=chunk) [Analysis of International and Domestic Energy Shipping Market During the Reporting Period](index=18&type=section&id=Analysis%20of%20International%20and%20Domestic%20Energy%20Shipping%20Market%20During%20the%20Reporting%20Period) In H1 2025, the international oil shipping market saw volatile but rising freight rates, particularly for VLCCs, influenced by OPEC+ production adjustments, geopolitical events, and US tariff policies, while refined oil freight rates declined year-on-year; domestic crude oil transportation increased, but refined oil transportation decreased; the global LNG trade grew slightly, with significant European import demand, leading to spot charter rate pressure but a stable mid-to-long-term market; the LPG market maintained stable supply and demand, with Middle East supply increases boosting demand; the domestic chemical shipping market faced pressure, while international freight rates gradually recovered after a downturn - In H1 2025, international crude oil tanker freight rates showed "high-frequency, wide-range, short-duration" volatility due to geopolitical events, with the average TCE for the representative VLCC route TD3C at **USD 40,370/day**, a **41%** quarter-on-quarter increase[57](index=57&type=chunk) - International refined oil tanker freight rates declined year-on-year, with the average TCE for the representative LR2 route TC1 at approximately **USD 29,636/day**, a **47%** decrease from the prior year[59](index=59&type=chunk) - Global LNG trade volume increased slightly by **1.7%**, with European LNG imports rising by **34.4%** year-on-year, and the US maintaining its position as the largest exporter[62](index=62&type=chunk) - In the international LPG market, increased supply from the Middle East boosted demand, and domestic LPG, butadiene, and propylene total seaborne volume increased by **8.3%** year-on-year[65](index=65&type=chunk)[66](index=66&type=chunk) [International Oil Shipping Market](index=18&type=section&id=International%20Oil%20Shipping%20Market) In H1 2025, international oil supply and demand showed "increased supply, stable demand," with stable crude oil seaborne trade, the Middle East and Russia remaining key exporters, limited VLCC newbuild deliveries and insufficient scrapping leading to volatile but rising freight rates due to geopolitical influences, and refined oil trade flows reshaping with new Asian refining capacity contrasting with European and American refinery closures, resulting in year-on-year freight rate declines - In H1 2025, global oil supply increased by **1.58 million barrels/day**, and consumption increased by **0.66 million barrels/day**[55](index=55&type=chunk) - **2** VLCC newbuilds were delivered and **2** were scrapped, with new orders accounting for **11.5%** of the global VLCC fleet[57](index=57&type=chunk) - Refined oil seaborne trade volume decreased by approximately **4.5%** overall, with LR2/Aframax and MR vessel types becoming the main deliveries, and new orders accounting for **17.3%** and **16.0%** of their respective fleet capacities[58](index=58&type=chunk)[59](index=59&type=chunk) [Domestic Oil Shipping Market](index=20&type=section&id=Domestic%20Oil%20Shipping%20Market) In H1 2025, the total domestic crude oil transportation market volume increased by approximately 11% year-on-year, with a significant increase in transit crude oil cargo, while the refined oil seaborne trade volume faced pressure and declined due to structural changes in domestic gasoline consumption - The total domestic crude oil market transportation volume was approximately **47 million tons**, a year-on-year increase of approximately **11%**[60](index=60&type=chunk) - Refined oil seaborne trade volume faced pressure, and market transportation volume declined[61](index=61&type=chunk) [LNG Shipping Market](index=21&type=section&id=LNG%20Shipping%20Market) In H1 2025, global LNG trade volume increased slightly by 1.7%, with European imports significantly rising due to restocking demand, while LNG fleet supply saw accelerated scrapping of older vessels and a 47% increase in newbuild deliveries, leading to weak spot market charter rate recovery but a relatively stable mid-to-long-term time charter market - Global LNG trade volume reached **208 million tons**, a year-on-year increase of approximately **1.7%**[62](index=62&type=chunk) - European LNG imports reached **56.12 million tons**, a year-on-year increase of **34.4%**[62](index=62&type=chunk) - **28** LNG carriers were delivered in the first half, a **47%** year-on-year increase, leading to weak spot market charter rate recovery[63](index=63&type=chunk)[64](index=64&type=chunk) [LPG Shipping Market](index=22&type=section&id=LPG%20Shipping%20Market) In H1 2025, international LPG supply and demand were generally stable, with increased supply from the Middle East boosting global transportation demand, while domestic LPG demand grew slightly, and total domestic seaborne volume for LPG, butadiene, and propylene increased by 8.3% year-on-year, with the coastal domestic market less affected by international trade, providing support for capacity demand - New LPG production capacity in the Middle East is expected to see a significant increase of **14-16 million tons/year** between 2025 and 2026[65](index=65&type=chunk) - Domestic LPG, butadiene, and propylene total seaborne volume was **2.7278 million tons**, a year-on-year increase of **8.3%**[66](index=66&type=chunk) [Chemical Shipping Market](index=22&type=section&id=Chemical%20Shipping%20Market) In H1 2025, the domestic chemical shipping market faced pressure due to weak demand in the petrochemical industry and rising costs, while international freight rates gradually recovered after a downturn, and the number of global stainless steel chemical tankers increased - The domestic chemical shipping market faced overall pressure, with international freight rates gradually recovering from June after a downturn in March-May[67](index=67&type=chunk) - As of the end of June 2025, there were **1,457** global stainless steel chemical tankers, an increase of **18** vessels from the end of 2024[67](index=67&type=chunk) [Review of Operating Performance During the Reporting Period](index=23&type=section&id=Review%20of%20Operating%20Performance%20During%20the%20Reporting%20Period) In H1 2025, the Group's transportation volume and turnover volume both increased, but revenue from principal activities decreased by 2.5% year-on-year, and profit attributable to equity holders of the Company decreased by 29.0%, with EBITDA declining by 12.5%, yet the Group achieved stable operating performance through six measures including enhancing customer collaboration, deepening domestic synergy, securing international LNG projects, promoting technological innovation, strengthening risk control, and solidifying safety management Key Operating Performance Metrics | Indicator | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Transportation volume (excluding time charter) | 94.48 million tons | - | +13.1% | | Transportation turnover volume (excluding time charter) | 342.7 billion ton-miles | - | +18.8% | | Revenue from principal activities | 11.57 billion CNY | - | -2.5% | | Profit attributable to equity holders of the Company | 1.89 billion CNY | - | -29.0% | | EBITDA | 5.07 billion CNY | - | -12.5% | - The Group implemented six measures to navigate the complex market environment, including enhancing customer collaboration, deepening domestic synergy, securing international LNG projects, promoting technological innovation, strengthening risk control, and solidifying safety management[69](index=69&type=chunk) [Revenue from Principal Activities](index=24&type=section&id=Revenue%20from%20Principal%20Activities) By transportation type, total oil product transportation revenue decreased by 5.5% year-on-year, with a 11.1 percentage point decline in gross profit margin; LNG transportation revenue increased by 29.8% year-on-year, with a slight decrease in gross profit margin; LPG transportation revenue increased by 26.5% year-on-year, with a decrease in gross profit margin; chemical transportation revenue decreased by 13.1%, but gross profit margin increased by 5.0 percentage points; by geographical segment, domestic transportation revenue decreased by 4.5%, and international transportation revenue decreased by 1.8% Principal Activities by Industry or Product | Industry or Product | Revenue (RMB Thousand) | Operating Cost (RMB Thousand) | Gross Profit Margin (%) | YoY Revenue Change (%) | YoY Operating Cost Change (%) | YoY Gross Profit Margin Change (Percentage Points) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Oil Product Transportation | 10,028,775 | 8,055,611 | 19.7 | (5.5) | 9.7 | (11.1) | | LNG Transportation | 1,244,020 | 626,861 | 49.6 | 29.8 | 36.3 | (2.4) | | LPG Transportation | 140,316 | 110,800 | 21.0 | 26.5 | 27.9 | (0.9) | | Chemical Transportation | 159,914 | 117,225 | 26.7 | (13.1) | (18.7) | 5.0 | | **Total** | **11,573,025** | **8,910,497** | **23.0** | **(2.5)** | **10.9** | **(9.3)** | Principal Activities by Geographical Segment | Geographical Segment | Revenue (RMB Thousand) | Operating Cost (RMB Thousand) | Gross Profit Margin (%) | YoY Revenue Change (%) | YoY Operating Cost Change (%) | YoY Gross Profit Margin Change (Percentage Points) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Domestic Transportation | 2,889,637 | 2,193,792 | 24.1 | (4.5) | (4.1) | (0.3) | | International Transportation | 8,683,388 | 6,716,705 | 22.6 | (1.8) | 16.9 | (12.4) | | **Total** | **11,573,025** | **8,910,497** | **23.0** | **(2.5)** | **10.9** | **(9.3)** | [Shipping Business – Oil, Gas, and Chemical Transportation](index=25&type=section&id=Shipping%20Business%20–%20Oil,%20Gas,%20and%20Chemical%20Transportation) In oil shipping, the Group saw declines in foreign trade oil shipping revenue and gross profit but maintained a strong VLCC fleet layout and expanded global operations for smaller vessel types by strengthening refined fleet operations and expanding quality customers; domestic oil shipping revenue and gross profit also decreased, but market share was consolidated through customer relationship maintenance and deepened synergy; LNG shipping business saw an increase in profit attributable to equity holders, with improved operational efficiency through strict vessel construction control and strengthened crew pool development; LPG shipping revenue and gross profit increased, actively cultivating the international market and exploring the ethylene and ammonia sectors; chemical shipping revenue decreased but gross profit increased, with enhanced efficiency through new customer expansion and optimized route planning [Foreign Trade Oil Shipping Business](index=25&type=section&id=Foreign%20Trade%20Oil%20Shipping%20Business) In H1 2025, foreign trade oil shipping revenue decreased by 5.5% year-on-year, and transportation gross profit decreased by 48.9% year-on-year, with gross profit margin declining by 15.2 percentage points, as the Group strengthened refined fleet operations, expanded quality customers, maintained a favorable VLCC fleet route layout, expanded global operations for smaller vessel types, and opportunistically converted between domestic and foreign trade - Foreign trade oil shipping revenue was **RMB 7.29 billion**, a **5.5%** year-on-year decrease; transportation gross profit was **RMB 1.30 billion**, a **48.9%** year-on-year decrease; gross profit margin was **17.9%**, a **15.2** percentage point year-on-year decrease[72](index=72&type=chunk) - The VLCC fleet maintained a favorable route layout, with over **20%** of routes in Brazil and North America eastbound, and continued cooperation with major international oil companies[72](index=72&type=chunk) - Smaller vessel types expanded global operations, focusing on the US Gulf-Europe transatlantic route while also considering the Mediterranean market[74](index=74&type=chunk) [Domestic Trade Oil Shipping Business](index=26&type=section&id=Domestic%20Trade%20Oil%20Shipping%20Business) In H1 2025, domestic trade oil shipping revenue decreased by 5.5% year-on-year, and transportation gross profit decreased by 6.9% year-on-year, with gross profit margin declining by 0.4 percentage points, as the Group maintained long-term cooperative relationships with major domestic oil companies and private refineries, actively addressed domestic trade demands from foreign trade customers, and deepened synergy with joint ventures and associates to consolidate market share - Domestic trade oil shipping revenue was **RMB 2.74 billion**, a **5.5%** year-on-year decrease; transportation gross profit was **RMB 0.67 billion**, a **6.9%** year-on-year decrease; gross profit margin was **24.4%**, a **0.4** percentage point year-on-year decrease[73](index=73&type=chunk) - Continuously maintained long-term cooperative relationships with major domestic oil companies and private refineries to ensure stable basic cargo sources[75](index=75&type=chunk) - Deepened synergy with joint ventures and associates, increasing offshore oil transportation share through cargo exchange[75](index=75&type=chunk) [LNG Shipping Business](index=27&type=section&id=LNG%20Shipping%20Business) In H1 2025, the LNG shipping segment contributed RMB 424 million in profit attributable to equity holders of the Company, a 5.7% year-on-year increase, as the Group strictly monitored vessel construction, delivered 2 high-quality LNG carriers, and strengthened crew pool development to enhance independent vessel management capabilities and operational efficiency - The LNG shipping segment contributed **RMB 424 million** in profit attributable to equity holders of the Company, a **5.7%** year-on-year increase[76](index=76&type=chunk) - Delivered **2** high-quality LNG carriers and continued to provide safe and efficient transportation services to customers[79](index=79&type=chunk) - Strengthened crew pool development, building a high-quality crew team through order-based training and crew transformation[79](index=79&type=chunk) [LPG Shipping Business](index=27&type=section&id=LPG%20Shipping%20Business) In H1 2025, the LPG fleet achieved transportation revenue of RMB 140 million, a 26.5% year-on-year increase; transportation gross profit of RMB 30 million, a 21.3% year-on-year increase; and a gross profit margin of 21.0%, a 0.9 percentage point year-on-year decrease, as the Group deeply cultivated the international VLGC transportation market, actively explored the ethylene and ammonia market, and promoted small triangular route planning to enhance operational efficiency - The LPG fleet's transportation revenue was **RMB 140 million**, a **26.5%** year-on-year increase; transportation gross profit was **RMB 30 million**, a **21.3%** year-on-year increase[77](index=77&type=chunk) - Deeply cultivated the international VLGC transportation market across multiple dimensions, engaging with leading international traders, energy giants, and major domestic importers[78](index=78&type=chunk) - Actively explored the ethylene and ammonia market, seeking diversified cooperation paths[82](index=82&type=chunk) [Chemical Shipping Business](index=28&type=section&id=Chemical%20Shipping%20Business) In H1 2025, the chemical fleet achieved transportation revenue of RMB 160 million, a 13.1% year-on-year decrease; transportation gross profit of RMB 40 million, a 7.0% year-on-year increase; and a gross profit margin of 26.7%, a 5.0 percentage point year-on-year increase, as the Group vigorously expanded new customers, diversified cargo sources and routes, optimized route planning, and increased cooperation with major international customers, actively promoting COA signings - The chemical fleet's transportation revenue was **RMB 160 million**, a **13.1%** year-on-year decrease; transportation gross profit was **RMB 40 million**, a **7.0%** year-on-year increase; gross profit margin was **26.7%**, a **5.0** percentage point year-on-year increase[80](index=80&type=chunk) - Vigorously expanded new customers for chemical transportation, actively diversifying cargo sources and routes, and optimizing route planning[81](index=81&type=chunk) - Increased cooperation with major international customers and traders, and actively promoted multiple COA signings[81](index=81&type=chunk) [Cost Structure of Principal Activities](index=29&type=section&id=Cost%20Structure%20of%20Principal%20Activities) In H1 2025, the Group's total operating costs for principal activities amounted to RMB 8.910 billion, a 10.9% year-on-year increase, with port charges and vessel charter fees significantly increasing in oil tanker transportation costs, while repair expenses decreased, and LNG transportation costs increased year-on-year due to new project commissioning, leading to higher depreciation, crew, and repair expenses Cost Structure of Principal Activities | Item | H1 2025 (RMB Thousand) | H1 2024 (RMB Thousand) | YoY Change (%) | H1 2025 Share (%) | | :--- | :--- | :--- | :--- | :--- | | Total Oil Tanker Transportation Costs | 8,055,611 | 7,341,999 | 9.7 | 100.0 | | - Fuel costs | 2,604,758 | 2,536,452 | 2.7 | 32.3 | | - Port charges | 519,737 | 369,043 | 40.8 | 6.5 | | - Vessel charter fees | 1,751,291 | 1,212,380 | 44.5 | 21.8 | | - Repair expenses | 82,768 | 179,322 | (53.8) | 1.0 | | Total LNG Transportation Costs | 626,861 | 459,864 | 36.3 | 100.0 | | - Depreciation expenses | 294,346 | 251,621 | 17.0 | 47.0 | | LPG Transportation Costs | 110,800 | 86,625 | 27.9 | 100.0 | | Chemical Transportation Costs | 117,225 | 144,239 | (18.7) | 100.0 | | **Total** | **8,910,497** | **8,032,727** | **10.9** | **-** | - In oil tanker transportation costs, port charges and vessel charter fees increased by **40.8%** and **44.5%** year-on-year, respectively, while repair expenses decreased by **53.8%** year-on-year[87](index=87&type=chunk) - LNG transportation costs increased by **36.3%** year-on-year, primarily due to the commissioning of PetroChina's national projects, leading to increased depreciation, crew, and repair expenses[84](index=84&type=chunk) [Operating Performance of Joint Ventures and Associates](index=30&type=section&id=Operating%20Performance%20of%20Joint%20Ventures%20and%20Associates) In H1 2025, the Group's two major joint venture and associate shipping companies achieved total operating revenue of approximately RMB 1.823 billion and net profit attributable to parent company of approximately RMB 931 million, a 4.8% year-on-year increase, with the Group recognizing investment income of approximately RMB 633 million, a 3.9% year-on-year increase - The Group's major joint venture and associate shipping companies achieved operating revenue of approximately **RMB 1.823 billion** and net profit attributable to parent company of approximately **RMB 931 million**, a **4.8%** year-on-year increase[85](index=85&type=chunk) - The Group recognized investment income from joint ventures and associates of approximately **RMB 633 million**, a **3.9%** year-on-year increase[85](index=85&type=chunk) Operating Performance of Major Joint Ventures and Associates | Company Name | Shareholding Ratio | Transportation Turnover Volume (Billion Ton-Miles) | Operating Revenue (RMB Thousand) | Net Profit Attributable to Parent Company (RMB Thousand) | | :--- | :--- | :--- | :--- | :--- | | CLNG (Joint Venture) | 50% | 38.324 | 574,508 | 501,586 | | Shanghai Beihai Shipping Co., Ltd. (Associate) | 40% | 13.240 | 1,248,658 | 429,000 | [Financial Position Analysis](index=31&type=section&id=Financial%20Position%20Analysis) The Group's net cash generated from operating activities decreased by 17% year-on-year, with capital commitments primarily for vessel construction and purchase contracts maturing from 2025 to 2028; the net debt-to-equity ratio decreased by 3 percentage points to 75%, mainly due to increased cash and cash equivalents; accounts receivable and contract assets significantly increased, as did accounts payable; the Group holds interest rate swap contracts to hedge cash flow interest rate risk and has both secured and unsecured bank and other interest-bearing loans; contingent liabilities primarily involve performance guarantees for LNG vessel construction and charter contracts; management monitors foreign exchange and interest rate risks [Net Cash Generated from Operating Activities](index=31&type=section&id=Net%20Cash%20Generated%20from%20Operating%20Activities) During the reporting period, the Group's net cash generated from operating activities was RMB 3.080 billion, a decrease of approximately 17% compared to the prior year Net Cash Generated from Operating Activities | Indicator | H1 2025 (RMB Thousand) | H1 2024 (RMB Thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Net cash generated from operating activities | 3,079,612 | 3,692,453 | -17.0% | [Capital Commitments](index=31&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group's approved and contracted but unprovided capital commitments for vessel construction and purchase totaled RMB 19.309 billion, an 11.4% increase from the end of 2024, with these commitments maturing from 2025 to 2028 Capital Commitments | Item | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | Change | | :--- | :--- | :--- | :--- | | Vessel construction and purchase | 19,308,950 | 17,330,060 | +11.4% | - Capital commitments are due from **2025 to 2028**[91](index=91&type=chunk) [Capital Structure](index=31&type=section&id=Capital%20Structure) As of June 30, 2025, the Group's net debt-to-equity ratio was 75%, a 3 percentage point decrease from the end of 2024, primarily due to an increase in cash and cash equivalents, which amounted to RMB 7.656 billion, a 35.22% year-on-year increase Capital Structure | Indicator | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | Change | | :--- | :--- | :--- | :--- | | Total debt | 37,451,179 | 36,165,624 | +3.55% | | Less: Cash and cash equivalents | (7,655,589) | (5,661,734) | +35.22% | | Net debt | 29,795,590 | 30,503,890 | -2.32% | | Total equity | 39,804,006 | 38,985,157 | +2.09% | | Net debt-to-equity ratio | 75% | 78% | -3 percentage points | - Cash and cash equivalents balance was **RMB 7,655,589 thousand**, an increase of **RMB 1,993,855 thousand** from the end of last year, representing a **35.22%** increase[93](index=93&type=chunk) [Accounts Receivable, Bills Receivable, and Contract Assets](index=33&type=section&id=Accounts%20Receivable,%20Bills%20Receivable,%20and%20Contract%20Assets) As of June 30, 2025, total accounts receivable and bills receivable amounted to RMB 1.284 billion, a significant 110.6% increase from the end of 2024, and total contract assets amounted to RMB 1.275 billion, a 44.3% increase from the end of 2024 Accounts Receivable, Bills Receivable, and Contract Assets | Item | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | Change | | :--- | :--- | :--- | :--- | | Total accounts receivable and bills receivable | 1,284,044 | 609,630 | +110.6% | | Total contract assets | 1,275,334 | 883,802 | +44.3% | - Among accounts receivable and bills receivable, the aging within one year accounted for the highest proportion, at **RMB 1,274,152 thousand**[96](index=96&type=chunk) [Accounts Payable](index=34&type=section&id=Accounts%20Payable) As of June 30, 2025, total accounts payable amounted to RMB 2.190 billion, a 10.8% increase from the end of 2024, with accounts payable to third parties and accounts payable to fellow subsidiaries being the main components Accounts Payable | Item | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | Change | | :--- | :--- | :--- | :--- | | Accounts payable to third parties | 1,327,077 | 1,108,230 | +19.7% | | Accounts payable to fellow subsidiaries | 845,389 | 848,743 | -0.4% | | **Total accounts payable** | **2,189,940** | **1,977,008** | **+10.8%** | - Among accounts payable, the aging within one year accounted for the highest proportion, at **RMB 2,027,643 thousand**[98](index=98&type=chunk) [Derivative Financial Instruments](index=35&type=section&id=Derivative%20Financial%20Instruments) As of June 30, 2025, the Group held interest rate swap contracts with a total notional principal of approximately USD 651 million, used to hedge cash flow risk from floating-rate bank loans, and both non-current derivative financial instrument assets and liabilities changed - The Group held interest rate swap contracts with a total notional principal of approximately **USD 651,049,000**, used to hedge cash flow risk from floating-rate bank loans[99](index=99&type=chunk) Derivative Financial Instruments | Item | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Total non-current derivative financial instrument assets | 88,108 | 202,052 | | Total non-current derivative financial instrument liabilities | 9,336 | – | [Bank and Other Interest-Bearing Loans](index=36&type=section&id=Bank%20and%20Other%20Interest-Bearing%20Loans) As of June 30, 2025, the Group's current portion of bank and other interest-bearing loans was RMB 9.212 billion, and the non-current portion was RMB 24.827 billion, with some bank loans secured by vessels, totaling approximately RMB 23.210 billion in net book value of mortgaged vessels Bank and Other Interest-Bearing Loans | Item | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Bank and other interest-bearing loans – current portion | 9,211,815 | 5,483,647 | | Bank and other interest-bearing loans – non-current portion | 24,826,984 | 27,039,085 | - The Group's bank loans are secured by **35** vessels and **6** vessels under construction, with a total net book value of approximately **RMB 23.210 billion** and **RMB 4.465 billion**, respectively[105](index=105&type=chunk) [Contingent Liabilities and Guarantees](index=37&type=section&id=Contingent%20Liabilities%20and%20Guarantees) The Group has various contingent liabilities and guarantees, primarily involving performance guarantees for LNG vessel construction and charter contracts, as well as financial guarantees for bank loans of joint ventures, with significant total guarantee amounts, all having clear guarantee periods and scopes - The Company provides performance guarantees for charter contracts of non-wholly owned subsidiary associates, not exceeding **USD 8,200,000**[107](index=107&type=chunk) - The Company provides performance guarantees for shipbuilding contracts (**USD 276,120,000**) and charter contracts (**USD 6,400,000** and **EUR 4,500,000**) for wholly-owned subsidiary joint ventures[107](index=107&type=chunk) - The Company provides financial guarantees for bank loans of **3** wholly-owned subsidiary joint ventures, with an actual guarantee amount of **USD 248,891,000**[107](index=107&type=chunk) [Foreign Exchange Risk Management](index=38&type=section&id=Foreign%20Exchange%20Risk%20Management) The Group operates globally and is primarily exposed to foreign exchange risk from USD and HKD against RMB, with management monitoring foreign exchange risk and utilizing forward foreign exchange contracts to hedge part of the risk when necessary - The Group is primarily exposed to foreign exchange risk from **USD** and **HKD** against **RMB**[108](index=108&type=chunk) - Management monitors foreign exchange risk and considers utilizing forward foreign exchange contracts for hedging[108](index=108&type=chunk) [Interest Rate Risk Management](index=38&type=section&id=Interest%20Rate%20Risk%20Management) The Group's interest rate risk primarily arises from borrowings, with receivables and borrowings bearing floating interest rates, and management monitors capital market conditions and enters into interest rate swap contracts to optimize the ratio of fixed-rate to floating-rate borrowings - The Group's interest rate risk primarily arises from borrowings bearing **floating interest rates**[109](index=109&type=chunk) - Management enters into interest rate swap contracts to achieve an optimal ratio of fixed-rate to floating-rate borrowings[109](index=109&type=chunk) [Fleet Development](index=38&type=section&id=Fleet%20Development) In H1 2025, the Group paid approximately RMB 1.465 billion for vessel construction progress payments and vessel purchases; as of June 30, 2025, the Group, its joint ventures, and associates operated a total of 247 vessels and had 57 vessels under construction, covering oil tankers, LNG, LPG, and chemical fleets - In H1 2025, the Group paid approximately **RMB 1.465 billion** for vessel construction progress payments and vessel purchases[110](index=110&type=chunk) Fleet Composition (as of June 30, 2025) | Fleet Type | Operating Vessels (Number) | Operating Vessels (Million DWT/CBM) | Average Age | Vessels Under Construction (Number) | Vessels Under Construction (Million DWT/CBM) | | :--- | :--- | :--- | :--- | :--- | :--- | | Oil Tanker Fleet | 174 | 24.591 | 12.8 | 18 | 2.961 | | LNG Vessel Fleet | 53 | 8.937 | 6.5 | 35 | 6.285 | | LPG Vessel Fleet | 12 | 0.126 | 14.0 | 2 | 0.015 | | Chemical Fleet | 8 | 0.073 | 4.9 | 2 | 0.021 | | **Total** | **247** | **-** | **-** | **57** | **-** | [Outlook and Key Initiatives for the Second Half of 2025](index=40&type=section&id=Outlook%20and%20Key%20Initiatives%20for%20the%20Second%20Half%20of%202025) In H2 2025, the oil tanker market supply-demand dynamics are expected to diverge, with VLCCs benefiting from fewer newbuild deliveries and potentially outperforming smaller vessel types in freight rates; LNG supply will continue to grow, supporting trade and seaborne demand, but spot charter rates will have limited upside, and the time charter market will remain relatively stable; LPG and chemical shipping market freight rates are expected to recover; the Group's key initiatives for H2 include improving its global hub network, enhancing core business profitability, optimizing digital supply chain products, adhering to technological innovation and green transformation, leveraging the five-year plan for strategic leadership, and strengthening risk control - In the second half, VLCC vessel types are expected to have a relatively stable fundamental outlook due to limited newbuild deliveries, while smaller vessel types may face freight rate pressure due to newbuild deliveries[115](index=115&type=chunk) - Global LNG supply is expected to continue growing, with new liquefaction capacity reaching **37 million tons/year**, supporting trade and seaborne demand, but **62** new LNG vessels will enter the market in the second half, limiting upside for spot charter rates[115](index=115&type=chunk) - LPG and chemical shipping market freight rates are expected to recover, driven by the traditional peak season and increased scrapping activity[116](index=116&type=chunk)[117](index=117&type=chunk) - Key initiatives for the second half include improving the global hub network, enhancing core business profitability, optimizing digital supply chain products, adhering to technological innovation and green transformation, leveraging the five-year plan for strategic leadership, and strengthening risk control[118](index=118&type=chunk)[119](index=119&type=chunk)[120](index=120&type=chunk) [Industry Supply-Demand Landscape and Development Trends](index=40&type=section&id=Industry%20Supply-Demand%20Landscape%20and%20Development%20Trends) In H2 2025, the international oil shipping market's VLCC segment will continue to benefit from fewer newbuild deliveries, with freight rates potentially outperforming smaller vessels; global oil demand growth will further slow, and OPEC+ production increases are expected to materialize in the second half; domestic crude oil transportation demand may continue structural adjustments; global LNG supply is expected to continue growing, but spot charter rates will have limited upside, and the time charter market will remain relatively stable; LPG and chemical shipping market freight rates are expected to recover, with increased scrapping of older vessels - In the second half, only **5** VLCC newbuilds are expected to be delivered, while approximately **18** Suezmax, **30** Aframax/LR2, and **67** MR vessel types will be delivered, respectively[114](index=114&type=chunk) - Global liquefaction capacity is projected to increase by **37 million tons/year** in 2025, the largest increase in recent years, but **62** new LNG vessels are expected to enter the market in the second half[115](index=115&type=chunk) - The international LPG market is expected to see a **1.4%** year-on-year increase in full-year trade volume, with VLGC capacity tightening and freight rates potentially rising further[116](index=116&type=chunk) [Key Initiatives for the Second Half](index=43&type=section&id=Key%20Initiatives%20for%20the%20Second%20Half) The Group will focus on its principal activities in the second half, enhancing end-to-end service capabilities by improving its global hub network, and strengthening the profitability of its oil tanker, LNG, LPG, and chemical transportation segments; simultaneously, it will optimize digital supply chain products, accelerate digital transformation, adhere to technological innovation and green and low-carbon transformation, scientifically plan medium-to-long-term green development paths, leverage the five-year plan for strategic leadership, and comprehensively strengthen risk control and hidden danger investigation and rectification - Improve the global hub network, focusing on strengthening cargo integration capabilities and safety assurance systems in key trade hubs such as the Middle East, Singapore, Europe, and America[118](index=118&type=chunk) - The oil tanker transportation segment will strengthen efforts in the Mediterranean region and Canadian routes; the LNG transportation segment will continue to track potential high-quality projects and enhance independent operation and vessel management capabilities; the LPG transportation segment will deepen ties with core customers and optimize return cargo matching; the chemical transportation segment will continue to consolidate COA cooperation with core customers[119](index=119&type=chunk) - Optimize the digital supply chain collaboration platform, complete the development and launch of the "COSCO Shipping Energy" digital supply chain product, and expand artificial intelligence application scenarios[119](index=119&type=chunk) - Actively carry out green and low-carbon and digital intelligence scientific research projects, jointly promote the demonstration and verification of large oil tanker wing sails, and conduct in-vessel demonstration research on ship carbon capture devices[119](index=119&type=chunk) - Successfully conclude the "14th Five-Year Plan" and scientifically formulate the "15th Five-Year Plan" for development, clarifying strategic directions and development strategies[119](index=119&type=chunk) - Control compliance operating risks, comprehensively ensure production safety, prevent financial management risks, deepen foreign exchange risk management, and strictly adhere to the "risk neutral" principle[120](index=120&type=chunk) [Other Significant Matters](index=45&type=section&id=Other%20Significant%20Matters) [Proposed Issuance of A Shares to Specific Subscribers](index=45&type=section&id=Proposed%20Issuance%20of%20A%20Shares%20to%20Specific%20Subscribers) The Company proposes to issue no more than 1,431,232,918 A shares to no more than 35 specific subscribers, a plan approved by the general meeting of shareholders on April 11, 2025, but still subject to approval by the China Securities Regulatory Commission - The Company proposes to issue no more than **1,431,232,918 A shares** to no more than **35** specific subscribers[121](index=121&type=chunk) - This issuance plan has been approved by the general meeting of shareholders but is subject to approval by the China Securities Regulatory Commission to become effective[121](index=121&type=chunk) [Purchase, Sale, and Redemption of the Company's Listed Securities](index=46&type=section&id=Purchase,%20Sale,%20and%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, and no treasury shares were held at the end of the reporting period - During the reporting period, neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities[124](index=124&type=chunk) - As of the end of the reporting period, the Company did not hold any treasury shares[124](index=124&type=chunk) [Compliance with Corporate Governance Code](index=46&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Company's Board of Directors adheres to corporate governance principles, with the Chairman and CEO roles held by different individuals, and five specialized Board committees established; the Directors believe that the Company has complied with the code provisions set out in Appendix C1 of the Listing Rules during the reporting period - The Company's Board Chairman and Chief Executive Officer are held by different individuals to maintain independence and balanced judgment[125](index=125&type=chunk) - The Company has established an Audit Committee, Remuneration and Appraisal Committee, Nomination Committee, Strategy Committee, and Risk and Compliance Management Committee[125](index=125&type=chunk) - The Directors believe that the Company has complied with the code provisions set out in Appendix C1 of the Listing Rules during the reporting period[125](index=125&type=chunk) [Audit Committee](index=47&type=section&id=Audit%20Committee) The Company's Audit Committee, composed of two independent non-executive directors and one non-executive director, is responsible for reviewing financial reporting procedures and internal controls, and has reviewed this interim results announcement and met with the independent auditor - The Audit Committee is composed of Mr. Huang Weide (Chairman), Mr. Wang Wei, and Mr. Zhao Jinsong[126](index=126&type=chunk) - The Audit Committee has reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025, and this interim results announcement[126](index=126&type=chunk) [Remuneration and Appraisal Committee](index=47&type=section&id=Remuneration%20and%20Appraisal%20Committee) The Company's Remuneration and Appraisal Committee, composed of three independent non-executive directors, has adopted relevant provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules - The Remuneration and Appraisal Committee is composed of Mr. Li Runsheng (Chairman), Mr. Huang Weide, and Mr. Wang Zuwen[127](index=127&type=chunk) - The Committee has adopted relevant provisions consistent with the Corporate Governance Code set out in Appendix C1 of the Listing Rules[127](index=127&type=chunk) [Nomination Committee](index=47&type=section&id=Nomination%20Committee) The Company's Nomination Committee, composed of three independent non-executive directors and one non-executive director, is responsible for reviewing the Board structure, identifying suitable director candidates, and assessing the independence of independent non-executive directors - The Nomination Committee is composed of Mr. Wang Zuwen (Chairman), Ms. Zhou Chongyi, Mr. Huang Weide, and Mr. Li Runsheng[128](index=128&type=chunk) - The Committee is responsible for reviewing the Board's structure, size, composition, and diversity policy, and identifying individuals with suitable qualifications to serve as directors[128](index=128&type=chunk) [Strategy Committee](index=48&type=section&id=Strategy%20Committee) The Company's Strategy Committee, composed of two executive directors, three non-executive directors, and two independent non-executive directors, is responsible for deliberating investment projects, acquisition and disposal plans, and evaluating post-investment effects, while also reviewing the Company's overall strategy, sustainable development, environmental, social, and governance strategies, and business development directions - The Strategy Committee is composed of Mr. Ren Yongqiang (Chairman), Mr. Zhu Maijin, Mr. Wang Shuqing, Mr. Wang Wei, Ms. Zhou Chongyi, Mr. Li Runsheng, and Mr. Zhao Jinsong[129](index=129&type=chunk) - The Committee is responsible for considering, evaluating, and deliberating investment projects and recommending significant investment plans, acquisition and disposal projects to the Board, and reviewing the Company's overall strategy, sustainable development, environmental, social, and governance strategies, and business development directions[129](index=129&type=chunk) [Risk and Compliance Management Committee](index=48&type=section&id=Risk%20and%20Compliance%20Management%20Committee) The Company's Risk and Compliance Management Committee, composed of one executive director and two independent non-executive directors, is responsible for deliberating risk control strategies and major risk control solutions, reviewing the effectiveness of risk management, and guiding the promotion of the Company's legal system construction - The Risk and Compliance Management Committee is composed of Mr. Zhao Jinsong (Chairman), Mr. Ren Yongqiang, and Mr. Wang Zuwen[130](index=130&type=chunk) - The Committee deliberates risk control strategies and major risk control solutions, reviews the effectiveness of the Company's risk management, and guides the promotion of the Company's legal system construction[130](index=130&type=chunk) [Compliance with Appendix C3 of the Listing Rules, Model Code for Securities Transactions by Directors of Listed Issuers](index=48&type=section&id=Compliance%20with%20Appendix%20C3%20of%20the%20Listing%20Rules,%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors%20of%20Listed%20Issuers) The Company has adopted the Model Code as the code for directors' securities transactions and confirms that all directors, supervisors, and senior management have complied with its provisions during the reporting period - The Company has adopted the Model Code set out in Appendix C3 of the Listing Rules as the code for directors' securities transactions[131](index=131&type=chunk) - All directors, supervisors, and senior management have complied with the provisions of the Model Code during the reporting period[131](index=131&type=chunk) [Employee Information](index=49&type=section&id=Employee%20Information) As of June 30, 2025, the Group had a total of 8,218 employees, with employee costs of approximately RMB 1.63 billion during the reporting period; the Company's remuneration policy is linked to operating efficiency, and operating management personnel receive regular training - As of June 30, 2025, the Group had a total of **8,218** employees[132](index=132&type=chunk) - During the reporting period, the Group's employee costs were approximately **RMB 1.63 billion**[132](index=132&type=chunk) - The Company's remuneration policy is linked to operating performance and profitability, and operating management personnel receive regular training[132](index=132&type=chunk) [Profit Distribution Plan for the Current Reporting Period](index=49&type=section&id=Profit%20Distribution%20Plan%20for%20the%20Current%20Reporting%20Period) The Company's 2025 Annual General Meeting authorized the Board of Directors to decide on the 2025 interim profit distribution plan; after comprehensive consideration, the Company decided not to implement an interim profit distribution for 2025 - The Company's Annual General Meeting has approved authorizing the Board of Directors to decide on the specific interim profit distribution plan for 2025[133](index=133&type=chunk) - After comprehensive consideration, the Company decided not to implement an interim profit distribution for 2025[134](index=134&type=chunk) [Major Acquisitions and Disposals of Subsidiaries, Associates, and Joint Ventures](index=49&type=section&id=Major%20Acquisitions%20and%20Disposals%20of%20Subsidiaries,%20Associates,%20and%20Joint%20Ventures) During the reporting period, the Group had no major acquisitions or disposals of subsidiaries, associates, or joint ventures - During the reporting period, the Group had no major acquisitions or disposals of subsidiaries, associates, or joint ventures[135](index=135&type=chunk) [Major Investments and Future Plans for Major Investments and Capital Assets](index=50&type=section&id=Major%20Investments%20and%20Future%20Plans%20for%20Major%20Investments%20and%20Capital%20Assets) As of June 30, 2025, the Group had not invested in any investee company whose fair value accounted for 5% or more of the Group's total assets, thus there were no major investments during the reporting period, nor any recent plans for major investments and capital assets - As of June 30, 2025, the Group had not invested in any investee company whose fair value accounted for **5%** or more of the Group's total assets[136](index=136&type=chunk) - During the reporting period, the Group had no major investments, nor any recent plans for major investments and capital assets[136](index=136&type=chunk) [Events After the Reporting Period](index=50&type=section&id=Events%20After%20the%20Reporting%20Period) After the reporting period, the Company's proposed issuance of A shares to specific subscribers was approved by the Shanghai Stock Exchange and received registration approval from the China Securities Regulatory Commission; the registration for issuing medium-term no

[Financial Highlights](index=1&type=section&id=%E8%B2%A1%20%E5%8B%99%20%E6%91%98%20%E8%A6%81) The company reported a 6.6% increase in total revenue and a 33.4% rise in net profit attributable to owners for the first half of 2025, with an interim dividend of 3 HK cents per share 2025 First Half Key Financial Data | Metric | 2025 (HK$'000) | 2024 (HK$'000) | Year-on-Year Growth (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 2,796,200 | 2,623,900 | 6.6% | | Gross Profit | 162,200 | 143,400 | 13.1% | | Net Profit Attributable to Owners of the Company | 48,500 | 36,300 | 33.4% | | Basic Earnings Per Share | 10.44 HK cents | 7.73 HK cents | 35.1% | | Diluted Earnings Per Share | 10.38 HK cents | 7.72 HK cents | 34.4% | - The Board resolved to declare an interim dividend of **3 HK cents per share** for the six months ended June 30, 2025, which is higher than **2 HK cents per share** in the same period of 2024[3](index=3&type=chunk) [Condensed Consolidated Financial Statements](index=3&type=section&id=%E7%B0%A1%20%E6%98%8E%20%E7%B6%9C%20%E5%90%88%20%E8%B2%A1%20%E5%8B%99%20%E5%A0%B1%20%E8%A1%A8) [Condensed Consolidated Statement of Profit or Loss](index=3&type=section&id=%E7%B0%A1%20%E6%98%8E%20%E7%B6%9C%20%E5%90%88%20%E6%90%8D%20%E7%9B%8A%20%E8%A1%A8) For the six months ended June 30, 2025, the Group's revenue increased by 6.6% to HK$2,796.2 million, gross profit grew by 13.1% to HK$162.2 million, and net profit attributable to owners significantly rose by 33.4% to HK$48.5 million, with basic earnings per share increasing to 10.44 HK cents Key Data from Condensed Consolidated Statement of Profit or Loss | Metric | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Revenue | 2,796,194 | 2,623,869 | | Cost of Sales | (2,633,954) | (2,480,450) | | Gross Profit | 162,240 | 143,419 | | Other Income | 11,236 | 9,041 | | Trade Receivables (Impairment Loss)/Reversal of Impairment Loss | (1,913) | 7,748 | | Research and Development Expenses | (17,757) | (16,767) | | Administrative Expenses | (36,370) | (36,060) | | Selling and Distribution Expenses | (57,071) | (51,370) | | Share of Results of Associates | 7,668 | 3,581 | | Finance Costs | (13,001) | (15,730) | | Profit Before Tax | 55,566 | 45,229 | | Income Tax Expense | (7,003) | (8,312) | | Profit for the Period | 48,563 | 36,917 | | Profit Attributable to Owners of the Company | 48,458 | 36,326 | | Non-controlling Interests | 105 | 591 | | Basic Earnings Per Share (HK cents) | 10.44 | 7.73 | | Diluted Earnings Per Share (HK cents) | 10.38 | 7.72 | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=4&type=section&id=%E7%B0%A1%20%E6%98%8E%20%E7%B6%9C%20%E5%90%88%20%E6%90%8D%20%E7%9B%8A%20%E5%8F%8A%20%E5%85%B6%20%E4%BB%96%20%E5%85%A8%20%E9%9D%A2%20%E6%94%B6%20%E5%85%A5%20%E8%A1%A8) For the six months ended June 30, 2025, the Group's profit for the period was HK$48.563 million, with total other comprehensive income of -HK$4.828 million, resulting in a total comprehensive income of HK$54.275 million, a significant increase from the prior year Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Profit for the Period | 48,563 | 36,917 | | Other Comprehensive Income: | | | | Exchange differences arising from translation of overseas operations | (5,115) | 5,712 | | Share of other comprehensive income of associates | 287 | – | | Other comprehensive income for the period (net of tax) | (4,828) | 5,712 | | Total Comprehensive Income for the Period | 54,275 | 32,089 | | Total Comprehensive Income Attributable to Owners of the Company | 54,136 | 31,566 | | Non-controlling Interests | 139 | 523 | [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=%E7%B0%A1%20%E6%98%8E%20%E7%B6%9C%20%E5%90%88%20%E8%B2%A1%20%E5%8B%99%20%E7%8B%80%20%E6%B3%81%20%E8%A1%A8) As of June 30, 2025, the Group's total net assets increased to HK$968.511 million, with current assets significantly rising to HK$1,901.506 million driven by inventory and trade receivables growth, while current liabilities also increased, leading to a decrease in the current ratio from 1.84 times to 1.47 times Key Data from Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 5,379 | 6,083 | | Right-of-use Assets | 6,313 | 9,368 | | Goodwill | 20,159 | 20,159 | | Intangible Assets | 4,728 | 4,737 | | Investments in Associates | 129,443 | 121,011 | | Deferred Tax Assets | 1,697 | 1,304 | | Total Non-current Assets | 362,532 | 354,841 | | **Current Assets** | | | | Inventories | 421,562 | 190,118 | | Trade and Bills Receivables | 1,114,965 | 658,354 | | Bank and Cash Balances | 160,204 | 239,455 | | Total Current Assets | 1,901,506 | 1,339,075 | | **Current Liabilities** | | | | Trade and Bills Payables | 580,252 | 341,874 | | Bank and Other Borrowings | 605,303 | 303,659 | | Total Current Liabilities | 1,293,007 | 728,941 | | **Non-current Liabilities** | | | | Lease Liabilities | 2,669 | 546 | | Bank and Other Borrowings | 2,530 | 1,974 | | Total Non-current Liabilities | 5,199 | 2,520 | | **Total Equity** | | | | Equity Attributable to Owners of the Company | 967,928 | 959,332 | | Non-controlling Interests | 444 | 583 | | Total Equity | 968,511 | 959,776 | - As of June 30, 2025, the current ratio decreased from **1.84 times** as of December 31, 2024, to **1.47 times**[69](index=69&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=7&type=section&id=%E7%B0%A1%20%E6%98%8E%20%E7%B6%9C%20%E5%90%88%20%E8%B2%A1%20%E5%8B%99%20%E5%A0%B1%20%E8%A1%A8%20%E9%99%84%20%E8%A8%BB) [1. Basis of Preparation](index=7&type=section&id=1.%20%E7%B7%A8%20%E8%A3%BD%20%E5%9F%BA%20%E6%BA%96) The condensed consolidated financial statements are prepared in accordance with HKAS 34 "Interim Financial Reporting" and the Listing Rules, adopting consistent accounting policies and methods as the 2024 annual financial statements - The condensed consolidated financial statements are prepared in accordance with HKAS 34 and the Listing Rules, adopting consistent accounting policies and methods as the 2024 annual financial statements[10](index=10&type=chunk) [2. New and Revised Hong Kong Financial Reporting Standards](index=7&type=section&id=2.%20%E6%96%B0%20%E8%A8%82%20%E5%8F%8A%20%E7%B6%93%20%E4%BF%AE%20%E8%A8%82%20%E9%A6%99%20%E6%B8%AF%20%E8%B2%A1%20%E5%8B%99%20%E5%A0%B1%20%E5%91%8A%20%E6%BA%96%20%E5%89%87%20%E6%9C%83%20%E8%A8%88%20%E6%BA%96%20%E5%89%87) The Group first applied the amendments to HKAS 21 "Lack of Exchangeability" from January 1, 2025, which did not result in changes to accounting policies or retrospective adjustments - The Group first applied the amendments to HKAS 21 "Lack of Exchangeability" from January 1, 2025, but this adoption did not change accounting policies or require retrospective adjustments[11](index=11&type=chunk) [3. Segment Information](index=7&type=section&id=3.%20%E5%88%86%20%E9%83%A8%20%E8%B3%87%20%E6%96%99) The Group's key operating decision-makers (Directors) review internal reports based on product categories, identifying authorized distribution and hybrid distribution as two reportable segments, with segment profit used for resource allocation and performance assessment, excluding unallocated expenses, share of results of associates, and fair value gains on financial assets [Information on Reportable Segment Profit or Loss](index=8&type=section&id=%E5%8F%AF%20%E5%A0%B1%20%E5%91%8A%20%E5%88%86%20%E9%83%A8%20%E6%90%8D%20%E7%9B%8A%20%E7%9A%84%20%E8%B3%87%20%E6%96%99) Reportable Segment Profit or Loss Data | Metric | 2025 Authorized Distribution (HK$'000) | 2025 Hybrid Distribution (HK$'000) | 2025 Total (HK$'000) | 2024 Authorized Distribution (HK$'000) | 2024 Hybrid Distribution (HK$'000) | 2024 Total (HK$'000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue from External Customers | 2,754,011 | 42,183 | 2,796,194 | 2,597,847 | 26,022 | 2,623,869 | | Segment Profit | 40,657 | 5,328 | 45,985 | 31,092 | 2,473 | 33,565 | Reconciliation of Consolidated Profit for the Period to Segment Profit | Metric | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Total Reportable Segment Profit | 45,985 | 33,565 | | Unallocated Expenses | (6,648) | (1,682) | | Fair Value Gain on Financial Assets at Fair Value Through Profit or Loss | 1,558 | 1,453 | | Share of Results of Associates | 7,668 | 3,581 | | Consolidated Profit for the Period | 48,563 | 36,917 | [Geographical Information](index=9&type=section&id=%E5%9C%B0%20%E5%8D%80%20%E8%B3%87%20%E6%96%99) Revenue from External Customers (by Operating Location) | Region | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Hong Kong | 1,432,163 | 1,322,132 | | China | 941,204 | 879,383 | | Singapore | 414,791 | 416,603 | | Japan | 506 | 70 | | Others | 7,530 | 5,681 | | Consolidated Total | 2,796,194 | 2,623,869 | [4. Revenue](index=10&type=section&id=4.%20%E6%94%B6%20%E5%85%A5) The Group's revenue primarily derives from the sale of electronic components, totaling HK$2,796.194 million for the six months ended June 30, 2025, all recognized at a point in time, with authorized distribution being the main source, showing significant growth in optoelectronic display, communication products, and optical communication businesses, while storage products and smart display businesses experienced a decline Disaggregation of Revenue from Contracts with Customers | Category of Goods or Services/Sales Channel | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | **Sale of Electronic Components** | **2,796,194** | **2,623,869** | | **Timing of Revenue Recognition:** | | | | At a point in time | 2,796,194 | 2,623,869 | | **Sales Channel/Product Line:** | | | | **Authorized Distribution** | | | | — Optoelectronic Display | 500,380 | 329,107 | | — Storage Products | 553,555 | 645,724 | | — Communication Products | 404,330 | 277,050 | | — Smart Vision | 593,557 | 551,212 | | — Smart Display | 334,129 | 444,514 | | — Optical Communication | 211,136 | 170,966 | | — Others | 156,924 | 179,274 | | **Hybrid Distribution** | 42,183 | 26,022 | - Revenue from the sale of electronic components is recognized when control of the goods is transferred (i.e., when goods are delivered to the port of delivery specified in the sales agreement or to the customer's designated location), with a general credit period of 0 to 120 days after delivery[20](index=20&type=chunk) [5. Income Tax Expense](index=11&type=section&id=5.%20%E6%89%80%20%E5%BE%97%20%E7%A8%85%20%E8%B2%BB%20%E7%94%A8) For the six months ended June 30, 2025, the Group's income tax expense was HK$7.003 million, a decrease from HK$8.312 million in the prior year, primarily comprising Hong Kong profits tax, PRC enterprise income tax, and Singapore enterprise income tax Composition of Income Tax Expense | Tax Category | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | **Current Tax** | | | | Hong Kong Profits Tax | 4,247 | 6,282 | | PRC Enterprise Income Tax | 2,246 | 353 | | Singapore Enterprise Income Tax | 669 | 507 | | Others | 81 | – | | Total Current Tax | 7,000 | 7,385 | | **Deferred Tax** | 1,312 | (382) | | **Total Income Tax Expense** | **8,312** | **7,003** | [6. Profit for the Period](index=11&type=section&id=6.%20%E6%9C%9F%20%E9%96%93%20%E5%88%A9%20%E6%BD%A4) The Group's profit for the period is stated after deducting total staff costs of HK$62.050 million (an 8.9% year-on-year increase), amortization of intangible assets, depreciation of property, plant and equipment, depreciation of right-of-use assets, and cost of inventories, with discretionary bonuses significantly increasing by 90.0% to HK$19.478 million Items Deducted in Arriving at Profit for the Period | Item | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | **Total Staff Costs** | **62,050** | **56,958** | | - Salaries, wages and other allowances | 36,143 | 39,966 | | - Discretionary bonuses | 19,478 | 10,278 | | - Contributions to retirement benefit schemes | 6,429 | 6,714 | | Amortization of intangible assets (included in selling and distribution expenses) | 790 | 790 | | Depreciation of property, plant and equipment | 1,176 | 1,047 | | Depreciation of right-of-use assets | 4,577 | 4,747 | | Cost of inventories recognized as an expense (excluding inventory provision) | 2,624,272 | 2,474,796 | | Provision for inventories (included in cost of sales) | 9,682 | 5,654 | [7. Dividends](index=12&type=section&id=7.%20%E8%82%A1%20%E6%81%AF) During the interim period, a final dividend of 10 HK cents per share, totaling HK$46.109 million, was declared and paid to owners of the company, and the Board resolved to declare an interim dividend of 3 HK cents per share, totaling HK$14.660 million, for 2025, exceeding the 2 HK cents per share in the prior year - A final dividend of **10 HK cents per share**, totaling **HK$46.109 million**, for the year ended December 31, 2024, was declared and paid to owners of the company (2024: **5 HK cents per share**, totaling **HK$23.469 million**, for the year ended December 31, 2023)[23](index=23&type=chunk) - The Board resolved to declare an interim dividend of **3 HK cents per share** for the six months ended June 30, 2025 (2024: **2 HK cents per share**), totaling **HK$14.660 million** (2024: **HK$9.774 million**)[23](index=23&type=chunk) [8. Earnings Per Share](index=12&type=section&id=8.%20%E6%AF%8F%20%E8%82%A1%20%E7%9B%88%20%E5%88%A9) For the six months ended June 30, 2025, basic earnings per share were 10.44 HK cents and diluted earnings per share were 10.38 HK cents, both showing an increase from the prior year, with earnings per share calculated based on profit attributable to owners of the company and the weighted average number of ordinary shares Earnings Per Share Calculation Data | Metric | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Profit attributable to owners of the Company | 48,458 | 36,326 | | **Number of Shares** | | | | Weighted average number of ordinary shares for basic earnings per share | 464,017,770 | 469,780,068 | | Effect of potential dilutive ordinary shares arising from restricted share units | 2,972,376 | 1,000,000 | | Weighted average number of ordinary shares for diluted earnings per share | 466,990,146 | 470,780,068 | [9. Trade and Bills Receivables](index=13&type=section&id=9.%20%E8%B2%BF%20%E6%98%93%20%E6%87%89%20%E6%94%B6%20%E6%AC%BE%20%E9%A0%85%20%E5%8F%8A%20%E6%87%89%20%E6%94%B6%20%E7%A5%A8%20%E6%93%9A) As of June 30, 2025, trade receivables (net of allowance for credit losses) amounted to HK$1,094.718 million, with the majority being current, and bills receivables totaled HK$20.247 million, while the Group's credit period generally ranges from 0 to 120 days, with strict monitoring of outstanding receivables Ageing Analysis of Trade and Bills Receivables | Ageing | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | **Trade Receivables:** | | | | Not yet due | 1,021,522 | 599,910 | | 0–60 days | 73,150 | 44,189 | | 61–120 days | 46 | 836 | | Over 120 days | – | 2 | | **Total Trade Receivables** | **1,094,718** | **644,937** | | **Bills Receivables:** | | | | 0–60 days | 20,247 | 13,417 | - As of June 30, 2025, trade receivables of **HK$381.663 million** and bills receivables of **HK$20.247 million** were discounted to banks on a full recourse basis[27](index=27&type=chunk) [10. Trade and Bills Payables](index=13&type=section&id=10.%20%E8%B2%BF%20%E6%98%93%20%E6%87%89%20%E4%BB%98%20%E6%AC%BE%20%E9%A0%85%20%E5%8F%8A%20%E6%87%89%20%E4%BB%98%20%E7%A5%A8%20%E6%93%9A) As of June 30, 2025, total trade and bills payables significantly increased to HK$580.252 million from HK$341.874 million as of December 31, 2024, with a credit period ranging from 0 to 60 days, and the 0-30 day ageing category accounting for the largest proportion Ageing Analysis of Trade and Bills Payables | Ageing | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | 0–30 days | 511,747 | 274,623 | | 31–60 days | 43,000 | 48,047 | | 61–90 days | 14,323 | 11,980 | | Over 90 days | 11,182 | 7,224 | | **Total** | **580,252** | **341,874** | - The credit period for trade payables ranges from **0 to 60 days**[28](index=28&type=chunk) [11. Bank and Other Borrowings](index=14&type=section&id=11.%20%E9%8A%80%20%E8%A1%8C%20%E5%8F%8A%20%E5%85%B6%20%E4%BB%96%20%E5%80%9F%20%E8%B2%B8) As of June 30, 2025, the Group's total bank and other borrowings significantly increased to HK$607.277 million from HK$306.189 million as of December 31, 2024, primarily comprising secured bank loans and secured bank supplier financing arrangements Composition of Bank and Other Borrowings | Borrowing Category | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Secured bank loans | 280,510 | 95,540 | | Secured bank supplier financing arrangements | 321,329 | 205,305 | | Other borrowings (secured) | 5,438 | 5,344 | | **Total** | **607,277** | **306,189** | Repayment Schedule of Bank and Other Borrowings | Repayment Period | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Within one year | 81,573 | 50,121 | | Over one year but not exceeding two years | 1,106 | 1,126 | | Over two years but not exceeding five years | 868 | 1,404 | | **Total** | **83,547** | **52,651** | | Portion of bank and other borrowings with repayment on demand clause (presented under current liabilities) | 523,730 | 253,538 | | **Total** | **607,277** | **306,189** | | Less: Amounts settled within 12 months (presented under current liabilities) | (605,303) | (303,659) | | Amounts settled after 12 months | 1,974 | 2,530 | [Management Discussion and Analysis](index=15&type=section&id=%E7%AE%A1%20%E7%90%86%20%E5%B1%A4%20%E8%A8%8E%20%E8%AB%96%20%E5%8F%8A%20%E5%88%86%20%E6%9E%90) [Business Review](index=15&type=section&id=%E6%A5%AD%20%E5%8B%99%20%E5%9B%9E%20%E9%A1%A7) In the first half of 2025, the global economy faced high volatility, low growth, and strong divergence, yet China's economy showed resilience, with AI technology penetration and emerging market demand driving a slight increase in the consumer electronics market and rapid development in the semiconductor industry due to the AI computing power revolution, leading the Group to actively adjust its business layout and achieve total sales of HK$2,796.2 million, a 6.6% year-on-year increase, and gross profit of HK$162.2 million, a 13.1% year-on-year increase [Overall Economic and Industry Environment](index=15&type=section&id=%E6%95%B4%E9%AB%94%E7%B6%93%E6%BF%9F%E5%8F%8A%E8%A1%8C%E6%A5%AD%E7%92%B0%E5%A2%83) - The 2025 global economic growth forecast was revised downwards from **2.8%** to **2.4%**, with global merchandise trade volume expected to shrink by **0.2%**, and North America being the most affected region[33](index=33&type=chunk) - In the first half of 2025, China's GDP grew by **5.3%** year-on-year, foreign trade exports maintained steady growth, high-end manufacturing performed outstandingly, and overall freight exports increased by **7.2%**[34](index=34&type=chunk) - Driven by AI technology penetration, growing demand in emerging markets, and pro-consumption policies, the global consumer electronics market saw a slight overall increase in Q1 2025[35](index=35&type=chunk) - From January to May 2025, the global semiconductor market size accumulated to **US$283.3 billion**, a year-on-year increase of **20.5%**, with sales growth in the Americas reaching **45.2%**[36](index=36&type=chunk) [Company Strategy Adjustment and Performance](index=17&type=section&id=%E5%85%AC%E5%8F%B8%E6%88%B0%E7%95%A5%E8%AA%BF%E6%95%B4%E5%8F%8A%E6%A5%AD%E7%B8%BE) - The company made targeted adjustments and deployments, including actively expanding business areas highly related to AI infrastructure and applications, such as optical module devices, robot vacuum cleaners, edge AI SoCs, and algorithm applications, while optimizing consumer electronics business[37](index=37&type=chunk) Group Overall Performance | Metric | 2025 First Half (HK$ Million) | Year-on-Year Growth (%) | | :--- | :--- | :--- | | Sales | 2,796.2 | 6.6% | | Gross Profit | 162.2 | 13.1% | [Smart Vision](index=17&type=section&id=%E6%99%BA%20%E6%85%A7%20%E8%A6%96%20%E8%A6%BA) Smart Vision business focuses on core scenarios such as smart vision, anti-theft alarms, and access control, providing chips and full-stack technical solutions, and enhancing prevention and control efficiency and expanding application scenarios through AI algorithms - The Smart Vision business focuses on core scenarios such as smart vision, anti-theft alarms, and access control, providing chips and full-stack technical solutions, and enhancing prevention and control efficiency and expanding application scenarios through AI algorithms[37](index=37&type=chunk) Smart Vision Business Sales | Metric | 2025 First Half (HK$ Million) | Year-on-Year Growth (%) | | :--- | :--- | :--- | | Sales | 593.6 | 7.7% | [Optoelectronic Display](index=18&type=section&id=%E5%85%89%20%E9%9B%BB%20%E9%A1%AF%20%E7%A4%BA) The Optoelectronic Display business primarily sells driver, TCON, and power chips used in monitors, commercial displays, TV LCD modules, laptop screens, and mobile phone display modules, benefiting from strong demand for large-sized TV panels stimulated by China's "national subsidy policy" - The Optoelectronic Display business primarily sells driver, TCON, and power chips used in monitors, commercial displays, TV LCD modules, laptop screens, and mobile phone display modules[38](index=38&type=chunk) - Benefiting from China's "national subsidy policy" stimulating strong demand for large-sized TV panels, panel shipments increased, driving up demand for display driver chips[38](index=38&type=chunk) Optoelectronic Display Business Sales | Metric | 2025 First Half (HK$ Million) | Year-on-Year Growth (%) | | :--- | :--- | :--- | | Sales | 500.4 | 52.0% | [Storage Products](index=18&type=section&id=%E5%AD%98%20%E5%84%B2%20%E7%94%A2%20%E5%93%81) Storage is a core segment of semiconductor chips, with HBM (High Bandwidth Memory) becoming a key growth engine, but traditional consumer electronics DRAM market demand remains weak, leading to underperforming results for this business unit in the first half of the year - Storage is a core segment of semiconductor chips, with HBM (High Bandwidth Memory) becoming a core growth engine, but demand for traditional consumer electronics ordinary DRAM market is weak[39](index=39&type=chunk) - The storage chips sold by this business unit are primarily used in the consumer electronics sector, leading to lower-than-expected performance in the first half of the year[39](index=39&type=chunk) Storage Products Business Sales | Metric | 2025 First Half (HK$ Million) | Year-on-Year Change (%) | | :--- | :--- | :--- | | Sales | 553.6 | -14.3% | [Smart Display](index=19&type=section&id=%E6%99%BA%20%E6%85%A7%20%E9%A1%AF%20%E7%A4%BA) The Smart Display business primarily provides SoC main control chips for flat-panel TVs and commercial display products, experiencing a decline in sales in the first half of the year due to increased localization rates of mid-to-low-end SoC chips and client adjustments - The Smart Display business primarily provides SoC main control chips for flat-panel TVs and commercial display products[40](index=40&type=chunk) - Sales for this business unit declined in the first half of the year due to increased localization rates of mid-to-low-end SoC chips and client adjustments[40](index=40&type=chunk) Smart Display Business Sales | Metric | 2025 First Half (HK$ Million) | Year-on-Year Change (%) | | :--- | :--- | :--- | | Sales | 334.1 | -24.8% | [Communication Products](index=19&type=section&id=%E9%80%9A%20%E8%A訊%20%E7%94%A2%20%E5%93%81) In the first half of 2025, the global cellular IoT module market significantly recovered, with RedCap module costs plummeting, driving a 50% surge in shipments, and this business unit's 5G PA and small-capacity MCP shipments maintained stable growth, driven by the RedCap demand explosion and accelerated domestic substitution - In the first half of 2025, the global cellular IoT module market significantly recovered, with RedCap module costs plummeting, driving a **50% surge** in shipments[41](index=41&type=chunk) - Driven by the dual factors of RedCap demand explosion and accelerated domestic substitution, this business unit's 5G PA and small-capacity MCP shipments maintained stable growth[41](index=41&type=chunk) Communication Products Business Sales | Metric | 2025 First Half (HK$ Million) | Year-on-Year Growth (%) | | :--- | :--- | :--- | | Sales | 404.3 | 45.9% | [Optical Communication](index=20&type=section&id=%E5%85%89%20%E9%80%9A%20%E8%A8%8A) In the first half of 2025, the global optical communication module market, particularly data center optical modules, showed strong growth driven by the explosion of AI computing power demand, continuous expansion of data centers, and accelerated technological iteration, with 800G optical modules being deployed significantly faster than the previous generation 400G products, becoming the core driver of market growth - In the first half of 2025, the global optical communication module market, especially data center optical modules, showed strong growth driven by the explosion of AI computing power demand, continuous expansion of data centers, and accelerated technological iteration[42](index=42&type=chunk) - The deployment speed of **800G optical modules** was significantly faster than the previous generation **400G products**, becoming the core driver of market growth in the first half of the year[42](index=42&type=chunk) Optical Communication Business Sales | Metric | 2025 First Half (HK$ Million) | Year-on-Year Growth (%) | | :--- | :--- | :--- | | Sales | 211.1 | 23.5% | [Hybrid Distribution](index=20&type=section&id=%E6%B7%B7%20%E5%90%88%20%E5%88%86%20%E9%8A%B7) In the first half of 2025, the semiconductor industry's destocking neared its end, with supply and demand tending towards a weak balance, and terminal customers' demand for spot and urgent orders generally remaining low, yet this business unit achieved stable recovery by actively expanding overseas markets, improving internal data matching transaction mechanisms, and utilizing online and offline synergistic promotion strategies to acquire customers - In the first half of 2025, the semiconductor industry's destocking neared its end, with supply and demand tending towards a weak balance, and terminal customers' demand for spot and urgent orders generally remaining low[43](index=43&type=chunk) - This business unit achieved stable recovery by actively expanding overseas markets, improving internal data matching transaction mechanisms, and utilizing online and offline synergistic promotion strategies to acquire customers[43](index=43&type=chunk) Hybrid Distribution Business Sales | Metric | 2025 First Half (HK$ Million) | Year-on-Year Growth (%) | | :--- | :--- | :--- | | Sales | 42.2 | 62.1% | [Outlook](index=21&type=section&id=%E5%B1%95%20%E6%9C%9B) Looking ahead to the second half of 2025, the global economy still faces challenges, but the AI-driven semiconductor industry is expected to continue growing, with China's economic development momentum strengthening, and the cultivation of new quality productive forces and consumption upgrades being key growth drivers, leading the Group to maintain a cautiously optimistic outlook for business development in the second half, focusing on expanding new AI application opportunities and continuously expanding the scale of its distribution business [Global Economic and Industry Outlook](index=21&type=section&id=%E5%85%A8%E7%90%83%E7%B6%93%E6%BF%9F%E5%8F%8A%E8%A1%8C%E6%A5%AD%E5%B1%95%E6%9C%9B) - The 2025 global GDP growth rate was revised downwards from the late 2024 forecast of **2.7%~3.3%** to **2.3%~2.4%**, marking the lowest level since the 2008 financial crisis[44](index=44&type=chunk) - The global electronics industry size is expected to grow by **6.9%** to **US$2.719 trillion** in 2025, with the server/storage market growing by as much as **27.9%**[44](index=44&type=chunk) - The global semiconductor chip sales target for 2025 was raised to **US$700.9 billion** (an **11.2%** year-on-year increase), and is expected to further grow by **8.5%** to **US$760.7 billion** in 2026, with logic chips and memory becoming core growth engines[44](index=44&type=chunk) [China Market Outlook](index=21&type=section&id=%E4%B8%AD%E5%9C%8B%E5%B8%82%E5%A0%B4%E5%B1%95%E6%9C%9B) - In the first half of 2025, China's GDP grew by **5.3%**, exceeding market expectations, leading several foreign institutions to raise their full-year growth forecasts[45](index=45&type=chunk) - China's economic growth is driven by the cultivation of new quality productive forces like AI and low-altitude economy, breakthroughs in green and low-carbon technologies stimulating investment, and consumption upgrades unleashing domestic demand potential[45](index=45&type=chunk) - China's semiconductor industry is rapidly making breakthroughs supported by policies and capacity expansion, with integrated circuit imports growing by **7.2%** year-on-year[45](index=45&type=chunk) [Overall Business Outlook](index=21&type=section&id=%E6%95%B4%E9%AB%94%E6%A5%AD%E5%8B%99%E5%B1%95%E6%9C%9B) - Despite structural challenges in the global semiconductor chip industry in the second half of 2025, the outlook is generally clear, and combined with stable growth policies and continuous funding in the domestic market, the Group maintains a cautiously optimistic view on the industry's business development in the second half[46](index=46&type=chunk) [Smart Vision Outlook](index=22&type=section&id=%E6%99%BA%20%E6%85%A7%20%E8%A6%96%20%E8%A6%BA) In Q1 2025, global smart camera shipments increased by 4.6%, with Asia-Pacific and Latin America showing the fastest growth, and in-car cameras are becoming a core growth engine for the smart vision business, with the global market expected to reach US$27.3 billion in 2025, and single-vehicle installations increasing to 8–12 units, as smart vision applications accelerate penetration into new areas such as smart wearables, smart glasses, 3D industrial vision, in-car, and robotics, leading the Group to be optimistic about achieving its business goals in the second half - In Q1 2025, global smart camera market shipments increased by **4.6%** year-on-year, with Asia-Pacific and Latin America markets showing the fastest growth[47](index=47&type=chunk) - In-car cameras are becoming the core growth engine for the smart vision business, with the global market expected to reach **US$27.3 billion** in 2025, and single-vehicle installations increasing to **8–12 units**[48](index=48&type=chunk) - Smart vision application scenarios are accelerating penetration into new areas such as smart wearables, smart glasses, 3D industrial vision, in-car, and robotics, leading the Group to be optimistic about achieving its business goals in the second half[48](index=48&type=chunk) [Optoelectronic Display Outlook](index=23&type=section&id=%E5%85%89%E9%9B%BB%E9%A1%AF%E7%A4%BA%E5%B1%95%E6%9C%9B) Omdia forecasts that overall shipments of medium and large-sized panels will increase by 2.6% year-on-year in 2025, a significant slowdown from 2024, but the termination of Windows 10 service and Windows 11's optimization for 4K/HDR displays are expected to drive a rebound in IT panel demand, with the e-sports monitor market also achieving a 12.4% year-on-year growth, leading the Group to maintain a cautiously optimistic outlook for its optoelectronic display business performance in the second half - Omdia expects overall shipments of medium and large-sized panels to increase by **2.6%** year-on-year in 2025, a significant slowdown from 2024[49](index=49&type=chunk) - The termination of Windows 10 service and Windows 11's optimization for 4K/HDR displays are expected to drive a rebound in IT panel demand, with the e-sports monitor market also achieving a **12.4%** year-on-year growth[49](index=49&type=chunk) - The Group maintains a cautiously optimistic outlook for its optoelectronic display business performance in the second half[49](index=49&type=chunk) [Storage Products Outlook](index=23&type=section&id=%E5%AD%98%20%E5%84%B2%20%E7%94%A2%20%E5%93%81%20%E5%B1%95%20%E6%9C%9B) The breakthrough of AI large model parameters to the trillion-level will drive a surge in demand for storage chips, with Yole expecting the global storage market size to reach US$200 billion in 2025, and DRAM and Nand flash prices are still expected to rise in the second half, with market demand driven by AI and year-end peak season recovery, but consumer electronics demand remains uncertain, leading this business unit to maintain a cautiously optimistic outlook for its storage products business performance in the second half - The breakthrough of AI large model parameters to the trillion-level will drive a surge in demand for storage chips, with Yole expecting the global storage market size to reach **US$200 billion** in 2025[50](index=50&type=chunk) - DRAM and Nand flash prices are still expected to rise in the second half, with market demand driven by AI and year-end peak season recovery, but consumer electronics demand remains uncertain[50](index=50&type=chunk) - This business unit maintains a cautiously optimistic outlook for its storage products business performance in the second half[50](index=50&type=chunk) [Smart Display Outlook](index=24&type=section&id=%E6%99%BA%20%E6%85%A7%20%E9%A1%AF%20%E7%A4%BA%20%E5%B1%95%20%E6%9C%9B) In the second half of 2025, the global TV market is expected to face overall pressure while undergoing structural upgrades, with the Chinese market potentially becoming a significant highlight, as technological upgrades lead structural changes, with 4K/8K TV penetration exceeding 80%, and smart TV picture quality chips + AI large models being the future development trend, but TV shipments may decrease year-on-year in the second half, and new technologies will contribute to business growth but with limited financial impact, leading the Group to maintain a cautious attitude towards achieving its performance goals in the second half - In the second half of 2025, the global TV market is expected to face overall pressure while undergoing structural upgrades, with the Chinese market potentially becoming a significant highlight[51](index=51&type=chunk) - Technological upgrades lead structural changes, with **4K/8K TV** penetration exceeding **80%**, and smart TV picture quality chips + AI large models being the future development trend[52](index=52&type=chunk) - TV shipments may decrease year-on-year in the second half, and new technologies will contribute to business growth but with limited financial impact, leading the Group to maintain a cautious attitude towards achieving its performance goals in the second half[52](index=52&type=chunk) [Communication Products Outlook](index=24&type=section&id=%E9%80%9A%20%E8%A8%8A%20%E7%94%A2%20%E5%93%81%20%E5%B1%95%20%E6%9C%9B) Emerging markets, stimulated by policy subsidies, will become the main growth driver for the communication market, with large-scale commercialization of 5G RedCap, AI-upgraded smart modules, and vehicle-to-everything (V2X) scenarios being core growth engines, and with rising storage chip prices and volumes, along with increased 4G/5G PA shipments, supporting this business unit's performance in the second half, the Group maintains an optimistic outlook for its performance in the second half - Emerging markets, stimulated by policy subsidies, will become the main growth driver for the communication market, with large-scale commercialization of **5G RedCap**, AI-upgraded smart modules, and vehicle-to-everything (V2X) scenarios being core growth engines[53](index=53&type=chunk) - With rising storage chip prices and volumes, along with increased 4G/5G PA shipments, supporting this business unit's performance in the second half, the Group maintains an optimistic outlook for its performance in the second half[53](index=53&type=chunk) [Optical Communication Outlook](index=25&type=section&id=%E5%85%89%20%E9%80%9A%20%E8%A8%8A%20%E5%B1%95%20%E6%9C%9B) The growth momentum of the data center optical module market will continue, with the mass production of NVIDIA GB300 servers and Huawei's all-optical interconnection solution driving an explosion in demand for 1.6T and 800G optical modules, and LightCounting expects data center optical component revenue to exceed US$16 billion in 2025, a year-on-year increase of up to 60%, leading the Group to maintain an optimistic outlook for business growth in the second half, benefiting from rapid short-term market demand and a continuously positive long-term market view - The growth momentum of the data center optical module market will continue, with the mass production of NVIDIA GB300 servers and Huawei's all-optical interconnection solution driving an explosion in demand for **1.6T** and **800G optical modules**[54](index=54&type=chunk) - LightCounting expects data center optical component revenue to exceed **US$16 billion** in 2025, a year-on-year increase of up to **60%**[54](index=54&type=chunk) - Benefiting from rapid short-term market demand and a continuously positive long-term market view, the Group maintains an optimistic outlook for business growth in the second half[54](index=54&type=chunk) [Hybrid Distribution Outlook](index=25&type=section&id=%E6%B7%B7%20%E5%90%88%20%E5%88%86%20%E9%8A%B7%20%E5%B1%95%20%E6%9C%9B) In the second half of 2025, semiconductor industry inventory is expected to return to healthy levels, but supply chain fluctuations will persist, with storage chips continuing to experience shortages and price increases due to AI demand and original factory capacity adjustments, and the year-end peak season will create new structural opportunities, leading this business unit to leverage its self-built data matching transaction system and expand overseas resources, maintaining a cautiously optimistic outlook for achieving its hybrid distribution business goals in the second half - In the second half of 2025, semiconductor industry inventory is expected to return to healthy levels, but supply chain fluctuations will persist, with storage chips continuing to experience shortages and price increases due to AI demand and original factory capacity adjustments[55](index=55&type=chunk) - The year-end peak season will create new structural opportunities, and this business unit will leverage its self-built data matching transaction system and expand overseas resources[55](index=55&type=chunk) - The Group maintains a cautiously optimistic outlook for achieving its hybrid distribution business goals in the second half[55](index=55&type=chunk) [Overall Strategic Focus](index=26&type=section&id=%E6%95%B4%E9%AB%94%E6%88%B0%E7%95%A5%E9%87%8D%E9%BB%9E) The Group will continue to deepen its authorized distribution, hybrid distribution, value-added technology, and optical communication chip manufacturing layout, improve its domestic and international business network, promote digitalization, and cultivate "all-round" distribution capabilities, with a future focus on expanding new AI application opportunities, paying attention to cross-border payment changes brought by the popularization of digital currencies and stablecoins, continuously expanding the scale of its distribution business, promoting the growth of value-added technology business, and achieving diversified and synergistic business development - The Group will continue to deepen its authorized distribution, hybrid distribution, value-added technology, and optical communication chip manufacturing layout, improve its domestic and international business network, promote digitalization, and cultivate "all-round" distribution capabilities[58](index=58&type=chunk) - Future focus will be on expanding new AI application opportunities, paying attention to cross-border payment changes brought by the popularization of digital currencies and stablecoins, continuously expanding the scale of its distribution business, promoting the growth of value-added technology business, and achieving diversified and synergistic business development[58](index=58&type=chunk) [Financial Review](index=27&type=section&id=%E8%B2%A1%20%E5%8B%99%20%E5%9B%9E%20%E9%A1%A7) This section provides a detailed review of the Group's financial performance for the first half of 2025, including revenue, gross profit, various expenses, and net profit, comparing them with the prior year and explaining the main reasons for changes [Revenue](index=27&type=section&id=%E6%94%B6%20%E5%85%A5) Revenue Performance | Metric | 2025 First Half (HK$ Million) | 2024 First Half (HK$ Million) | Year-on-Year Growth (%) | | :--- | :--- | :--- | | Revenue | 2,796.2 | 2,623.9 | 6.6% | - The increase in revenue was primarily due to increased sales from the authorized distribution business[59](index=59&type=chunk) [Gross Profit](index=27&type=section&id=%E6%AF%9B%20%E5%88%A9) Gross Profit Performance | Metric | 2025 First Half (HK$ Million) | 2024 First Half (HK$ Million) | Year-on-Year Growth (%) | | :--- | :--- | :--- | | Gross Profit | 162.2 | 143.4 | 13.1% | | Gross Profit Margin | 5.8% | 5.5% | 0.3 percentage points | - The increase in gross profit margin was primarily due to increased sales from the hybrid distribution business[60](index=60&type=chunk) [Research and Development Expenses](index=27&type=section&id=%E7%A0%94%20%E7%99%BC%20%E8%B2%BB%20%E7%94%A8) Research and Development Expenses | Metric | 2025 First Half (HK$ Million) | 2024 First Half (HK$ Million) | Year-on-Year Growth (%) | | :--- | :--- | :--- | | Research and Development Expenses | 17.8 | 16.8 | 5.9% | - The increase in research and development expenses was primarily due to increased staff costs for R&D personnel[61](index=61&type=chunk) [Administrative, Selling and Distribution Expenses](index=27&type=section&id=%E8%A1%8C%20%E6%94%BF%E3%80%81%E9%8A%B7%20%E5%94%AE%20%E5%8F%8A%20%E5%88%86%20%E9%8A%B7%20%E8%B2%BB%20%E7%94%A8) Administrative, Selling and Distribution Expenses | Metric | 2025 First Half (HK$ Million) | 2024 First Half (HK$ Million) | % of Revenue (2025) | % of Revenue (2024) | | :--- | :--- | :--- | :--- | :--- | | Total Expenses | 93.4 | 87.4 | 3.3% | 3.3% | - The increase in expenses was primarily due to increased staff costs for selling and distribution personnel[62](index=62&type=chunk) [Finance Costs](index=27&type=section&id=%E8%B2%A1%20%E5%8B%99%20%E8%B2%BB%20%E7%94%A8) Finance Costs | Metric | 2025 First Half (HK$ Million) | 2024 First Half (HK$ Million) | Year-on-Year Change (%) | | :--- | :--- | :--- | | Finance Costs | 13.0 | 15.7 | -17.2% | - The decrease in finance costs was primarily due to a reduction in bank and other borrowings used for the Group's operations[63](index=63&type=chunk) [Profit for the Period](index=28&type=section&id=%E6%9C%9F%20%E9%96%93%20%E5%88%A9%20%E6%BD%A4) Profit for the Period Performance | Metric | 2025 First Half (HK$ Million) | 2024 First Half (HK$ Million) | Year-on-Year Growth (%) | | :--- | :--- | :--- | | Profit for the Period | 48.6 | 36.9 | 31.5% | | Net Profit Margin | 1.7% | 1.4% | 0.3 percentage points | [Profit Attributable to Owners of the Company](index=28&type=section&id=%E6%9C%AC%20%E5%85%AC%20%E5%8F%B8%20%E6%93%81%20%E6%9C%89%20%E4%BA%BA%20%E6%87%89%20%E4%BD%94%20%E6%B7%A8%20%E5%88%A9%20%E6%BD%A4) Profit Attributable to Owners of the Company | Metric | 2025 First Half (HK$ Million) | 2024 First Half (HK$ Million) | Year-on-Year Growth (%) | | :--- | :--- | :--- | | Net Profit | 48.5 | 36.3 | 33.4% | [Use of Proceeds from Global Offering](index=28&type=section&id=%E5%85%A8%20%E7%90%83%20%E7%99%BC%20%E5%94%AE%20%E6%89%80%20%E5%BE%97%20%E6%AC%BE%20%E9%A0%85%20%E7%94%A8%20%E9%80%94) The company was listed in 2016, with net proceeds from the global offering of approximately HK$205.8 million, of which approximately HK$181.9 million had been utilized as of June 30, 2025, with the remaining HK$23.9 million primarily allocated for upgrading, further developing, and maintaining the Group's e-commerce platform and improving its technological infrastructure, expected to be fully utilized by December 31, 2025 [Overview of Proceeds](index=28&type=section&id=Overview%20of%20Proceeds) - The company was listed on October 7, 2016, with net proceeds from the global offering of approximately **HK$205.8 million**[66](index=66&type=chunk) - As of June 30, 2025, approximately **HK$181.9 million** had been utilized, and the unutilized net proceeds were placed as deposits with banks[66](index=66&type=chunk) [Detailed Use of Proceeds](index=29&type=section&id=Detailed%20Use%20of%20Proceeds) Details of Use of Proceeds from Global Offering | Use of Proceeds | Net Proceeds (HK$ Million) | Amount Utilized as of June 30, 2025 (HK$ Million) | Remaining Amount (HK$ Million) | Expected Timeline for Utilization of Remaining Net Proceeds | | :--- | :--- | :--- | :--- | :--- | | Recruitment of new staff for sales and marketing and business development, and upgrading of warehouse facilities | 20.6 | 20.6 | 0.0 | – | | Advertising and marketing activities for promoting e-commerce platform, Chip Globe program, and new products | 41.2 | 41.2 | 0.0 | – | | Upgrading, further developing, and maintaining the Group's e-commerce platform and improving technological infrastructure | 41.2 | 17.3 | 23.9 | Expected to be fully utilized by December 31, 2025 | | For research and development | 20.6 | 20.6 | 0.0 | – | | Funding for potential acquisitions or investments in e-commerce or electronics industry businesses or companies | 61.7 | 61.7 | 0.0 | – | | General working capital | 20.5 | 20.5 | 0.0 | – | | **Total** | **205.8** | **181.9** | **23.9** | | - The timeline for the utilization of net proceeds was delayed due to rapid technological changes, US-China trade tensions, social unrest in Hong Kong, and the COVID-19 pandemic in recent years[70](index=70&type=chunk) [Liquidity and Financial Resources](index=30&type=section&id=%E6%B5%81%20%E5%8B%95%20%E8%B3%87%20%E9%87%91%20%E5%8F%8A%20%E8%B2%A1%20%E5%8B%99%20%E8%B3%87%20%E6%BA%90) The Group's primary funding sources are cash from operating activities and bank credit, with total bank and cash balances of HK$328.1 million and outstanding bank and other borrowings of HK$607.3 million as of June 30, 2025, resulting in an increased gearing ratio to 62.7% and a decreased current ratio to 1.47 times, while trade receivables, payables, and inventory turnover periods remained at reasonable levels [Cash and Bank Balances](index=30&type=section&id=Cash%20and%20Bank%20Balances) Total Bank and Cash Balances | Metric | June 30, 2025 (HK$ Million) | December 31, 2024 (HK$ Million) | | :--- | :--- | :--- | | Total restricted and unrestricted bank and cash balances | 328.1 | 432.3 | [Bank and Other Borrowings](index=30&type=section&id=Bank%20and%20Other%20Borrowings) Outstanding Bank and Other Borrowings | Metric | June 30, 2025 (HK$ Million) | December 31, 2024 (HK$ Million) | | :--- | :--- | :--- | | Outstanding bank and other borrowings | 607.3 | 306.2 | Gearing Ratio | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gearing Ratio | 62.7% | 31.9% | [Bank Facilities and Unused Amounts](index=30&type=section&id=Bank%20Facilities%20and%20Unused%20Amounts) Bank Facilities and Unused Amounts | Metric | June 30, 2025 (HK$ Million) | December 31, 2024 (HK$ Million) | | :--- | :--- | :--- | | Total bank facilities | 2,601.3 | 2,323.6 | | Unused amounts | 1,994.0 | 2,017.4 | [Current Assets and Liabilities](index=30&type=section&id=Current%20Assets%20and%20Liabilities) Current Assets and Liabilities | Metric | June 30, 2025 (HK$ Million) | December 31, 2024 (HK$ Million) | | :--- | :--- | :--- | | Current Assets | 1,901.5 | 1,339.1 | | Current Liabilities | 1,293.0 | 728.9 | | Current Ratio | 1.47 times | 1.84 times | [Trade Receivables Turnover Period](index=30&type=section&id=Trade%20Receivables%20Turnover%20Period) Trade Receivables Turnover Period | Metric | 2025 First Half (Days) | 2024 First Half (Days) | | :--- | :--- | :--- | | Trade Receivables Turnover Period | 57 | 53 | [Trade Payables Turnover Period](index=31&type=section&id=Trade%20Payables%20Turnover%20Period) Trade Payables Turnover Period | Metric | 2025 First Half (Days) | 2024 First Half (Days) | | :--- | :--- | :--- | | Trade Payables Turnover Period | 32 | 24 | [Inventory Turnover Period](index=31&type=section&id=Inventory%20Turnover%20Period) Inventory Turnover Period | Metric | 2025 First Half (Days) | 2024 First Half (Days) | | :--- | :--- | :--- | | Inventory Turnover Period | 21 | 15 | [Foreign Exchange Risk](index=31&type=section&id=%E5%A4%96%20%E5%8C%AF%20%E9%A2%A8%20%E9%9A%AA) The Group's transactions are primarily denominated in USD and RMB, recording a net exchange loss of approximately HK$1.0 million for the six months ended June 30, 2025, and while currently not adopting a foreign currency hedging policy, it will consider using foreign exchange forward contracts to mitigate significant foreign exchange risks Net Exchange Loss | Metric | 2025 First Half (HK$ Million) | 2024 First Half (HK$ Million) | | :--- | :--- | :--- | | Net Exchange Loss | 1.0 | 0.1 | - The Group currently does not adopt any foreign currency hedging policy but will consider using foreign exchange forward contracts to mitigate significant foreign exchange risks[72](index=72&type=chunk) [Pledged Assets](index=31&type=section&id=%E8%B3%87%20%E7%94%A2%20%E6%8A%B5%20%E6%8A%BC) As of June 30, 2025, the Group had pledged financial assets, factored trade receivables, and bank deposits totaling approximately HK$681.3 million as collateral for bank borrowings and financing arrangements Pledged Assets | Asset Category | June 30, 2025 (HK$ Million) | December 31, 2024 (HK$ Million) | | :--- | :--- | :--- | | Financial assets at fair value through profit or loss | 131.7 | 130.1 | | Factored trade receivables | 381.7 | 99.0 | | Bank deposits | 167.9 | 192.9 | [Capital Commitments and Contingent Liabilities](index=31&type=section&id=%E8%B3%87%20%E6%9C%AC%20%E6%89%BF%20%E6%93%94%20%E5%8F%8A%20%E6%88%96%20%E7%84%B6%20%E8%B2%A0%20%E5%82%B5) As of June 30, 2025, the Group had no significant capital commitments or contingent liabilities - As of June 30, 2025, the Group had no significant capital commitments or contingent liabilities[74](index=74&type=chunk) [Material Investments Held](index=31&type=section&id=%E6%89%80%20%E6%8C%81%20%E6%9C%89%20%E7%9A%84%20%E9%87%8D%20%E5%A4%A7%20%E6%8A%95%20%E8%B3%87) Except for the disclosed financial assets and investments in associates, the Group held no other material investments during this interim period - Except for the financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income disclosed above, and investments in associates as stated in the condensed consolidated statement of financial position, the Group held no other material investments for the six months ended June 30, 2025[75](index=75&type=chunk) [Material Acquisitions and Disposals of Subsidiaries and Associates](index=31&type=section&id=%E6%9C%89%20%E9%97%9C%20%E9%99%84%20%E5%B1%AC%20%E5%85%AC%20%E5%8F%B8%20%E5%8F%8A%20%E8%81%AF%20%E7%87%9F%20%E5%85%AC%20%E5%8F%B8%20%E7%9A%84%20%E9%87%8D%20%E5%A4%A7%20%E6%94%B6%20%E8%B3%BC%20%E5%8F%8A%20%E5%87%BA%20%E5%94%AE%20%E4%BA%8B%20%E9%A0%85) The Group did not undertake any material acquisitions or disposals of subsidiaries and associates for the six months ended June 30, 2025 - The Group did not undertake any material acquisitions or disposals of subsidiaries and associates for the six months ended June 30, 2025[76](index=76&type=chunk) [Corporate Governance and Other Information](index=32&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) [Purchase, Sale or Redemption of Listed Securities](index=32&type=section&id=%E8%B3%BC%20%E8%B2%B7%E3%80%81%E5%87%BA%20%E5%94%AE%20%E6%88%96%20%E8%B3%96%20%E5%9B%9E%20%E4%B8%8A%20%E5%B8%82%20%E8%AD%89%20%E5%88%B8) 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 for the six months ended June 30, 2025[77](index=77&type=chunk) [Events After 30 June 2025](index=32&type=section&id=2025%E5%B9%B46%E6%9C%8830%E6%97%A5%20%E5%BE%8C%20%E4%BA%8B%20%E9%A0%85) As of the date of this announcement, the Group had no significant post-balance sheet events requiring disclosure after June 30, 2025 - As of the date of this announcement, the Group had no significant post-balance sheet events requiring disclosure after June 30, 2025[78](index=78&type=chunk) [Compliance with Corporate Governance Code](index=32&type=section&id=%E9%81%B5%20%E5%AE%88%20%E4%BC%81%20%E6%A5%AD%20%E7%AE%A1%20%E6%B2%BB%20%E5%AE%88%20%E5%89%87) The company has adopted the Corporate Governance Code set out in Appendix C1 of the Listing Rules, and except for Code Provision C.2.1 (separation of roles for Chairman and Chief Executive), the company has complied with all applicable code provisions during the reporting period, with the Board believing that the current arrangement of the same person holding both Chairman and Chief Executive roles ensures internal leadership consistency and efficient strategic planning, and will continue to review this structure - The company has complied with the applicable code provisions of the Corporate Governance Code for the six months ended June 30, 2025, except for Code Provision C.2.1[79](index=79&type=chunk) - The company deviates from Code Provision C.2.1 because Mr. Tian Weidong currently holds both the Chairman and Chief Executive roles, and the Board believes this arrangement ensures internal leadership consistency and more effective and efficient overall strategic planning for the Group[80](index=80&type=chunk) [Standard Securities Dealing Code](index=33&type=section&id=%E8%AD%89%20%E5%88%B8%20%E4%BA%A4%20%E6%98%93%20%E6%A8%99%20%E6%BA%96%20%E5%AE%88%20%E5%89%87) The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules, and all Directors have confirmed full compliance with the Model Code during the reporting period - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules, and all Directors have confirmed full compliance with the Model Code for the six months ended June 30, 2025[81](index=81&type=chunk) [Audit Committee](index=33&type=section&id=%E5%AF%A9%20%E6%A0%B8%20%E5%A7%94%20%E5%93%A1%20%E6%9C%83) The Audit Committee, comprising three independent non-executive Directors, is primarily responsible for reviewing and monitoring the Group's financial reporting process and internal control system, and has reviewed the interim results, discussing financial statements, independent review results, accounting policies, and internal control matters with the auditors and management - The Audit Committee, comprising three independent non-executive Directors, is primarily responsible for reviewing and monitoring the Group's financial reporting process and internal control system[82](index=82&type=chunk) - The Audit Committee has reviewed the Group's interim results for the six months ended June 30, 2025, and discussed relevant matters with the external auditors and management[82](index=82&type=chunk) [Publication of Interim Report](index=33&type=section&id=%E5%88%8A%20%E7%99%BC%20%E4%B8%AD%20%E6%9C%9F%20%E5%A0%B1%20%E5%91%8A) This announcement has been published on the HKEXnews website and the company's website, and the interim report for the six months ended June 30, 2025, will be dispatched to shareholders and published on the HKEXnews and company websites in due course - This announcement has been published on the HKEXnews website (www.hkexnews.hk) and the company's website (www.smart-core.com.hk)[83](index=83&type=chunk) - The company's interim report for the six months ended June 30, 2025, will be dispatched to shareholders and published on the HKEXnews and company websites in due course[83](index=83&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不對因本公告全部或任何部份內容而產生或因倚賴 該等內容而引致的任何損失承擔任何責任。 Jiayuan Services Holdings Limited 佳源服務控股有限公司 （於開曼群島註冊成立之有限公司） （股份代號：1153） 截至2025年6月30日止六個月中期業績公告 佳源服務控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈本公司 及其附屬公司（統稱「本集團」）截至2025年6月30日止六個月的合併中期業績，連 同截至上一財政年度同期的比較數字如下： 1 中期簡明合併全面收益表 （截至2025年6月30日止六個月） 截至6月30日止六個月 | | 附註 | 2025年 | 2024年 | | --- | --- | --- | --- | | | | 人民幣千元 | 人民幣千元 | | | | （未經審核）（未經審核） | | | 收入 | 4 | 417,044 | 434,364 | | 服務及銷售成本 | | (283,738) | (288,349) | ...

Financial Performance - For the six months ended June 30, 2025, the company reported revenue of RMB 1,024.7 million, representing a year-on-year increase of 31.0% compared to RMB 782.5 million in 2024[6]. - Gross profit for the same period was RMB 359.9 million, up 43.1% from RMB 251.5 million in the previous year[6]. - The company recorded a net loss of approximately RMB 48.0 million, a significant reduction of 91.3% compared to a loss of RMB 550.3 million in the same period last year[9]. - The adjusted net loss (non-IFRS measure) was approximately RMB 11.9 million, narrowing by 94.0% from RMB 197.2 million year-on-year[9]. - Revenue increased by approximately 31.0% from RMB 782.5 million for the six months ended June 30, 2024, to RMB 1,024.7 million for the six months ended June 30, 2025[19]. - Gross profit rose from RMB 251.5 million to RMB 359.9 million, with the overall gross margin improving from 32.1% to 35.1%[23]. - The company's net loss narrowed from RMB 550.3 million for the six months ended June 30, 2024, to RMB 48.0 million for the six months ended June 30, 2025, primarily due to increased revenue from robotic solutions and reduced interest expenses on redeemed liabilities[31]. - Adjusted net loss (non-IFRS measure) decreased by 94.0% from RMB 197.2 million for the six months ended June 30, 2024, to RMB 11.9 million for the six months ended June 30, 2025, reflecting the same reasons for the narrowed operating loss[32]. - EBITDA (non-IFRS measure) improved from a loss of RMB 522.966 million for the six months ended June 30, 2024, to a loss of RMB 24.445 million for the six months ended June 30, 2025, driven by increased revenue from warehousing robotic solutions[37]. Revenue Sources - Non-mainland China revenue reached RMB 815.1 million, accounting for 79.5% of total revenue, driven by strong demand from core verticals such as e-commerce and logistics[8]. - Revenue from robot solution sales increased by approximately 31.5%, from RMB 778.7 million to RMB 1,023.7 million, driven by higher delivery volumes and increased order quantities[20]. - Revenue from RaaS services decreased by approximately 71.5%, from RMB 3.8 million to RMB 1.1 million, due to strategic business adjustments[21]. - The company’s revenue primarily comes from the sale of robotic solutions and RaaS services, which include design, sales, installation, and debugging of robotic hardware and software solutions[61]. Expenses and Costs - R&D expenses increased from approximately RMB 133.1 million to RMB 147.2 million, reflecting increased investment in new technology research[24]. - Sales and marketing expenses grew from approximately RMB 229.7 million to RMB 240.2 million, driven by higher marketing, exhibition, and travel costs[25]. - Administrative expenses rose significantly from approximately RMB 87.6 million to RMB 134.8 million, primarily due to increased personnel costs and professional fees related to the IPO[26]. - The total salary cost for the six months ended June 30, 2025, is RMB 348.4 million, compared to RMB 306.0 million for the same period in 2024, indicating a 13.8% increase[49]. - Employee costs rose to RMB 348,422 thousand, an increase of 14% from RMB 305,974 thousand in 2024[68]. - The cost of inventory sold was RMB 664,808 thousand, up 27% from RMB 523,059 thousand in the previous year[78]. Cash Flow and Liquidity - As of June 30, 2025, the total cash and cash equivalents, along with time deposits, amounted to RMB 725.6 million, a decrease of approximately RMB 10.4 million from RMB 736.0 million as of December 31, 2024[38]. - The company's adjusted net current assets (excluding redeemable liabilities) were approximately RMB 457.3 million as of June 30, 2025, down from approximately RMB 572.8 million as of December 31, 2024[38]. - Cash used in operating activities for the six months ended June 30, 2025, was RMB 110,069,000, a reduction from RMB 281,658,000 in the same period of 2024, reflecting improved cash flow management[54]. - The company generated net cash from financing activities of RMB 130,871,000 for the six months ended June 30, 2025, compared to a net cash used of RMB 100,587,000 in the same period of 2024[54]. - The company’s cash and cash equivalents decreased by RMB 38,088,000 for the six months ended June 30, 2025, compared to a decrease of RMB 445,779,000 in the same period of 2024[54]. Debt and Liabilities - Total borrowings increased to RMB 563.5 million as of June 30, 2025, compared to RMB 413.9 million as of December 31, 2024, primarily due to working capital needs[39]. - As of June 30, 2025, the company's total liabilities amounted to RMB 6,292,230,000, with current liabilities at RMB 6,570,134,000, primarily due to redeemable liabilities[57]. - The total amount of redeemable liabilities decreased to RMB 7,027.5 million as of June 30, 2025, from RMB 7,048.6 million as of December 31, 2024[86]. - The company's capital debt ratio is 80.1%, up from 75.0% on December 31, 2024[44]. - The group's total capital debt ratio stands at 269.9% as of June 30, 2025, compared to 295.0% on December 31, 2024[44]. Corporate Governance and Future Plans - The company has complied with all applicable provisions of the Corporate Governance Code, except for the separation of the roles of Chairman and CEO[104]. - The board believes that having the same person serve as both Chairman and CEO is beneficial for unified leadership and effective strategic planning[104]. - The company plans to utilize the net proceeds from the offering according to the future plans outlined in the prospectus[102]. - There are no significant future plans for investments or capital assets beyond those disclosed in the prospectus[43]. - The company did not declare or pay any dividends during the reporting period, consistent with its historical practice since incorporation[91]. - The company has not declared an interim dividend for the six months ended June 30, 2025[107]. - The audit committee has reviewed the unaudited interim results for the six months ended June 30, 2025, and discussed accounting policies and internal controls with senior management[105]. - The company has not yet implemented the execution plans mentioned in the prospectus as the new proceeds were received after June 30, 2025[102]. Market and Operational Highlights - The company secured orders totaling RMB 1,759.8 million in the first half of 2025, an increase of 30.1% compared to the same period in 2024[8]. - The company has delivered over 66,000 robots to more than 40 countries and regions, with a customer repurchase rate exceeding 80%[7]. - The establishment of a wholly-owned subsidiary focused on embodied intelligence technology was completed on July 30, 2025, to enhance R&D capabilities[13]. - The company plans to deepen its global market presence and expand its customer base by enhancing local sales and service teams[14]. - The Hyper + core algorithm platform supports the scheduling of over 5,000 robots, showcasing the company's technological advancements in the robotics sector[12].

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。 2025年中期業績公告 概 要 本公司於2025年6月30日的財務狀況及截至2025年6月30日止六個月期 間 的 經 營 結 果 如 下： 註： 增 減 比 例 採 用 元 版 數 據 計 算。 – 1 – • 營業收入為2,375.33億 元， 較2024年上半年的2,988.42億元減少 613.09億 元（降 幅20.52%）。 • 利潤總額為52.79億 元，較2024年上半年的56.81億元減少4.02億 元（降 幅7.08%）。 • 歸屬上市公司股東淨利潤為30.99億 元，較2024年上半年的41.50億 元減少10.51億 元（降 幅25.31%）。 • 基本每股收益為0.09元，2024年上半年的基本每股收益為0.11元。 • 資產總額於2025年6月30日為8,574.06億元，較2024年12月31日的8,080 ...