Financial Statements [Interim Condensed Consolidated Statement of Profit or Loss](index=1&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) Revenue grew significantly by 51.7% to 215,096 thousand RMB, and loss attributable to owners narrowed by 25.8% to 4,221 thousand RMB Interim Condensed Consolidated Statement of Profit or Loss | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 215,096 | 141,811 | 51.7% | | Cost of Sales | (141,736) | (92,443) | 53.3% | | Gross Profit | 73,360 | 49,368 | 48.6% | | Operating Loss | (8,224) | (11,995) | -31.5% | | Loss for the Period Attributable to Owners of the Company | (4,221) | (5,683) | -25.8% | [Interim Condensed Consolidated Statement of Comprehensive Income](index=2&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) Basic and diluted loss per share attributable to owners narrowed to 0.66 RMB cents, with total comprehensive loss for the period slightly improving to 6,663 thousand RMB Interim Condensed Consolidated Statement of Comprehensive Income | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Loss per share attributable to owners of the Company for the period (RMB cents) | (0.66) | (0.89) | | Loss for the period | (4,221) | (5,683) | | Exchange differences on translation | (2,442) | (1,060) | | Total comprehensive loss attributable to owners of the Company for the period | (6,663) | (6,743) | [Interim Condensed Consolidated Statement of Financial Position](index=3&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) Total assets increased to 770,889 thousand RMB, primarily driven by current assets, while total liabilities rose and total equity slightly decreased Interim Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 770,889 | 737,678 | 4.5% | | Total Non-current Assets | 173,752 | 176,731 | -1.7% | | Total Current Assets | 597,137 | 560,947 | 6.4% | | Total Equity | 555,654 | 565,279 | -1.7% | | Total Liabilities | 215,235 | 172,399 | 24.8% | | Total Non-current Liabilities | 4,698 | 4,838 | -2.9% | | Total Current Liabilities | 210,537 | 167,561 | 25.6% | Notes to the Financial Information [General Information](index=5&type=section&id=1%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) The company specializes in the production, distribution, R&D, and sale of asphalt mixing plants and related equipment, listed on the HKEX Main Board since May 2015 - The company's core business involves the production, distribution, R&D, and sale of asphalt mixing plants and related equipment[7](index=7&type=chunk) - The company was listed on the Main Board of The Stock Exchange of Hong Kong Limited on **May 27, 2015**[8](index=8&type=chunk) [Basis of Preparation](index=5&type=section&id=2%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The interim condensed consolidated financial information is prepared under HKAS 34 'Interim Financial Reporting' and should be read with the 2024 annual financial statements - The interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[10](index=10&type=chunk) [Accounting Policies](index=5&type=section&id=3%20%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) Accounting policies align with 2024 annual financial statements, adopting new standards effective January 1, 2025, with no significant financial impact, and assessing unadopted standards - Adopted accounting policies are consistent with the 2024 annual financial statements, incorporating new and revised standards effective **January 1, 2025**, including HKAS 21 and HKFRS 1 (Amendments) "Lack of Exchangeability", which had no significant financial impact[11](index=11&type=chunk)[12](index=12&type=chunk) - Several new and revised standards not yet adopted are listed, including HKFRS 9, HKFRS 7, HKFRS 1, HKFRS 10, and HKAS 28, with effective dates mostly in **2026 or 2027**, and their potential impact is still under assessment[13](index=13&type=chunk)[14](index=14&type=chunk) [Estimates](index=6&type=section&id=4%20%E4%BC%B0%E8%A8%88) Significant judgments and estimation uncertainties for interim financial information are consistent with 2024 annual statements, with actual results potentially differing from estimates - Significant judgments and sources of estimation uncertainty in preparing the interim financial information are consistent with those applied in the 2024 annual consolidated financial statements[15](index=15&type=chunk) [Segment Information](index=6&type=section&id=5%20%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group operates a single segment, selling asphalt mixing plants and related equipment, with significant revenue growth in Mainland China and a decline overseas - The Group operates a single primary business segment: sales of asphalt mixing plants, spare parts, refurbished equipment, and other asphalt specialized equipment[16](index=16&type=chunk) Revenue by Product Type | Revenue Source | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Sales of asphalt mixing plants | 170,213 | 112,578 | | Sales of spare parts and refurbished equipment | 32,624 | 21,906 | | Sales of other asphalt specialized equipment | 12,259 | 7,327 | | **Total Revenue** | **215,096** | **141,811** | Revenue by Geographical Market | Revenue from External Customers (by Country) | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Mainland China | 198,656 | 97,388 | | Outside Mainland China | 16,440 | 44,423 | | **Total Revenue** | **215,096** | **141,811** | [Other Income and Other Gains/(Losses) – Net](index=8&type=section&id=6%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E2%88%95%EF%BC%88%E虧損%EF%BC%89%E6%B7%A8%E9%A1%8D) Other income and other gains – net significantly increased, driven by stable government grants and a reversal from exchange losses to gains Other Income and Other Gains/(Losses) – Net | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | Change (thousand RMB) | | :--- | :--- | :--- | :--- | | Government grants | 1,124 | 1,034 | 90 | | Net exchange gains/(losses) | 437 | (1,187) | 1,624 | | **Total** | **1,952** | **422** | **1,530** | [Operating Loss](index=8&type=section&id=7%20%E7%B6%93%E7%87%9F%E虧損) Operating loss narrowed, influenced by increased inventory costs and employee benefits, but offset by a significant reduction in trade receivables impairment Operating Loss Components | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Cost of inventories | 132,049 | 87,607 | | Employee benefit expenses | 38,502 | 33,511 | | Net impairment loss provision/(reversal) on trade receivables | 33 | (3,350) | | Net impairment loss provision/(reversal) on inventories | 5,515 | (3,199) | [Income Tax Expense](index=9&type=section&id=8%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Mainland China operations are subject to a 25% statutory tax rate, with Langfang Deji enjoying a 15% preferential rate as a 'High-Tech Enterprise', and no tax provision due to no taxable profit - Langfang Deji Machinery Technology Co., Ltd., as a "High and New Technology Enterprise", enjoys a preferential income tax rate of **15%**[27](index=27&type=chunk) - Eligible R&D expenditures are deductible with an additional **100%** tax deduction[27](index=27&type=chunk) [Loss Per Share](index=9&type=section&id=9%20%E6%AF%8F%E8%82%A1%E虧損) Basic loss per share narrowed to 0.66 RMB cents, driven by reduced loss attributable to owners, with diluted loss per share being identical due to no dilutive shares Loss Per Share Calculation | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Loss attributable to owners of the Company (thousand RMB) | (4,221) | (5,683) | | Weighted average number of ordinary shares issued | 638,516,000 | 639,408,000 | | Basic loss per share (RMB cents per share) | (0.66) | (0.89) | [Trade and Bills Receivables](index=10&type=section&id=10%20%E8%B2%A3%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E5%8F%8A%E6%87%89%E6%94%B6%E7%A5%A8%E6%93%9A) Total trade and bills receivables increased to 212,888 thousand RMB, driven by third-party receivables, with credit terms up to 18 months and impairment provisions based on risk Trade and Bills Receivables | Metric | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Total trade and bills receivables | 212,888 | 169,189 | | Trade receivables within 1 year | 207,566 | 147,779 | | Trade receivables over 3 years | 60,461 | 60,666 | - Customers are generally granted credit terms of up to **18 months**[30](index=30&type=chunk) [Trade and Other Payables and Contract Liabilities](index=11&type=section&id=11%20%E8%B2%A3%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85%E5%8F%8A%E5%90%88%E7%B4%84%E8%B2%A0%E5%82%B5) Total trade and other payables increased to 160,343 thousand RMB, with contract liabilities at 49,696 thousand RMB, and bills payable secured by pledged assets Trade and Other Payables and Contract Liabilities | Metric | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Trade payables | 60,568 | 26,307 | | Bills payable | 56,705 | 64,091 | | Contract liabilities | 49,696 | 41,320 | | Total trade and other payables | 160,343 | 125,302 | - Bills payable are secured by pledged bank deposits of approximately **20,080 thousand RMB**, buildings of **23,619 thousand RMB**, and land use rights of **4,116 thousand RMB**[31](index=31&type=chunk) [Share Capital, Share Premium and Other Reserves](index=12&type=section&id=12%20%E8%82%A1%E6%9C%AC%E3%80%81%E8%82%A1%E4%BB%BD%E6%BA%A2%E5%83%B9%E5%8F%8A%E5%85%B6%E4%BB%96%E5%84%B2%E5%82%99) Share capital remained unchanged, with some shares repurchased and cancelled; reserves include distributable share premium, capital reserve from shareholder contributions, and statutory reserves - For the six months ended June 30, 2025, the company repurchased a total of **5,184,000** of its own shares at a total cost of approximately **2,962 thousand RMB**[33](index=33&type=chunk) - The company cancelled a total of **12,424,000** repurchased shares with a total cost of approximately **7,795 thousand RMB** during the period[33](index=33&type=chunk) - The statutory general reserve can be used to compensate for losses from previous years and can be converted into capital in proportion to investors' existing equity[37](index=37&type=chunk) [Dividends](index=13&type=section&id=14%20%E8%82%A1%E6%81%AF) No interim dividends were paid, declared, or proposed by the board for the six months ended June 30, 2025 - For the six months ended June 30, 2025, no interim dividends were paid, declared, or proposed[39](index=39&type=chunk) Management Discussion and Analysis [Overview](index=14&type=section&id=%E6%A6%82%E8%A6%BD) The Group, a leading road construction machinery provider, achieved strong revenue and gross profit growth in H1 2025, driven by infrastructure investment and effective cost and inventory management - The Group is a leading market participant in the road construction and maintenance machinery industry in Mainland China and overseas markets[40](index=40&type=chunk) - Core products include asphalt mixing plants, encompassing conventional and recycling equipment, along with refurbishment services and advanced technologies like RAP crushing equipment and sand-making machines[40](index=40&type=chunk)[41](index=41&type=chunk) Key Financial Performance | Metric | H1 2025 (thousand RMB) | H1 2024 (thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 215,096 | 141,811 | 51.7% | | Gross Profit | 73,360 | 49,368 | 48.6% | [Business Development](index=15&type=section&id=%E6%A5%AD%E5%8B%99%E7%99%BC%E5%B1%95) The Group diversifies revenue by expanding asphalt-related businesses, investing in combustion technology and R&D, holding 262 registered patents and 31 software copyrights in China - Committed to developing asphalt-related businesses along the supply chain, seeking strategic partners for cooperative production and sales of asphalt mixtures[45](index=45&type=chunk) - Continuously conducting combustion technology research, developing burner combustion equipment, and providing technical support services, with **59** registered combustion technology patents and **4** pending registrations[46](index=46&type=chunk) - As of June 30, 2025, the Group holds **262** registered patents (including **16** invention patents and **8** design patents) and **31** software copyrights in China, with **29** patent applications pending approval[47](index=47&type=chunk) [Marketing and Awards](index=16&type=section&id=%E7%87%9F%E9%8A%B7%E5%8F%8A%E7%8D%8E%E9%A0%85) The Group enhanced brand image through industry events and online platforms, earning multiple industry and environmental awards for its specialized manufacturing and sustainability efforts - Participated in various promotional activities, technical seminars, and corporate social responsibility events, including the Chengdu Southwest Asphalt Recycling Mixing Equipment Technology Exchange Conference and the CTT Expo in Moscow[48](index=48&type=chunk) - In **May 2025**, ranked **45th** among the Top 50 Specialized Manufacturers in China's Construction Machinery Industry[48](index=48&type=chunk) - In **July and August 2025**, received the "Sustainable Development Institution Excellence Award" at the UN Sustainable Development Goals Hong Kong Achievement Awards 2025, and "Environmental Excellence Enterprise" and "10 Years+ Environmental Pioneer" honors at the BOC Hong Kong Corporate Environmental Leadership Awards[48](index=48&type=chunk) [Prospects](index=17&type=section&id=%E5%89%8D%E6%99%AF) The Group is optimistic about H2 2025 China road construction market, targeting global expansion in Asia and product diversification through strategic partnerships, led by new Board Chairman Ms. Cai Qunli - National infrastructure spending is projected to exceed **3 trillion RMB** in **2025**, with transportation development remaining a top priority[49](index=49&type=chunk) - Committed to global expansion, focusing on profitable Asian markets, particularly emerging markets like the Philippines and Indonesia[49](index=49&type=chunk) - Strengthening strategic cooperation with a Canadian company specializing in road construction vehicles to expand product offerings[49](index=49&type=chunk) - CEO Ms. Cai Qunli was appointed as the Board Chairman, effective **June 23, 2025**, and will lead the company towards long-term stable and sustainable growth in domestic and international markets[50](index=50&type=chunk) [Financial Review](index=18&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) This section reviews H1 2025 financial performance, showing total revenue growth of 51.7% and gross profit growth of 48.6%, with net loss attributable to owners narrowing to 4,221 thousand RMB Key Financial Metrics | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 215,096 | 141,811 | 51.7% | | Gross Profit | 73,360 | 49,368 | 48.6% | | Gross Profit Margin | 34.1% | 34.8% | -0.7 percentage points | | Net Loss Attributable to Owners of the Company | (4,221) | (5,683) | -25.8% | [Sales of Asphalt Mixing Plants](index=18&type=section&id=%E6%B7%BA%E9%9D%92%E6%B7%B7%E5%90%88%E6%96%99%E6%攪拌%E8%A8%AD%E5%82%99%E9%8A%B7%E5%94%AE) Asphalt mixing plant sales revenue grew 51.2% to 170,213 thousand RMB, driven by increased contracts and improved gross margin, with strong growth in conventional equipment and China market sales Sales of Asphalt Mixing Plants Performance | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Sales Revenue of Asphalt Mixing Plants | 170,213 | 112,578 | 51.2% | | Gross Profit | 61,108 | 34,773 | 75.7% | | Gross Profit Margin | 35.9% | 30.9% | 5.0 percentage points | | Number of Contracts | 23 | 10 | 13 | | Average Contract Value | 7,401 | 11,258 | -34.3% | Sales of Asphalt Mixing Plants by Equipment Type | Equipment Type | 2025 (thousand RMB) | 2024 (thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Recycling Equipment Revenue | 28,276 | 75,139 | -62.4% | | Recycling Equipment Gross Profit Margin | 35.4% | 31.6% | 3.8 percentage points | | Conventional Equipment Revenue | 141,937 | 37,439 | 279.1% | | Conventional Equipment Gross Profit Margin | 36.0% | 29.4% | 6.6 percentage points | Sales of Asphalt Mixing Plants by Region | Region | 2025 (thousand RMB) | 2024 (thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | China Sales Revenue | 160,269 | 73,800 | 117.2% | | China Sales Gross Profit Margin | 35.4% | 29.5% | 5.9 percentage points | | Overseas Sales Revenue | 9,944 | 38,778 | -74.4% | | Overseas Sales Gross Profit Margin | 43.8% | 33.5% | 10.3 percentage points | [Sales of Spare Parts and Components and Refurbished Equipment](index=20&type=section&id=%E9%9B%B6%E9%83%A8%E4%BB%B6%E5%8F%8A%E7%B5%84%E4%BB%B6%E4%BB%A5%E5%8F%8A%E7%B6%93%E6%94%B9%E9%80%A0%E8%A8%AD%E5%82%99%E9%8A%B7%E5%94%AE) Sales of spare parts, components, and refurbished equipment grew 48.9% to 32,624 thousand RMB, driven by increased demand for conventional equipment refurbishment, with gross margin slightly improving to 46.6% Sales of Spare Parts and Components and Refurbished Equipment Performance | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 32,624 | 21,906 | 48.9% | | Gross Profit | 15,194 | 9,989 | 52.1% | | Gross Profit Margin | 46.6% | 45.6% | 1.0 percentage points | [Sales of Other Asphalt Specialized Equipment](index=21&type=section&id=%E5%85%B6%E4%BB%96%E6%B7%BA%E9%9D%92%E5%B0%88%E9%96%80%E8%A8%AD%E5%82%99%E9%8A%B7%E5%94%AE) Other asphalt specialized equipment sales revenue grew 67.3% to 12,259 thousand RMB, with gross margin improving to 21.0%, driven by strategic partnerships and new product promotion Sales of Other Asphalt Specialized Equipment Performance | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 12,259 | 7,327 | 67.3% | | Gross Profit | 2,573 | 1,407 | 82.9% | | Gross Profit Margin | 21.0% | 19.2% | 1.8 percentage points | | Number of Contracts | 6 | 3 | 3 | - The Group has been the exclusive supplier of LiuGong Asphalt Equipment (LAP) series asphalt mixing plants since **May 2021**[61](index=61&type=chunk) - Actively promoting RAP crushing equipment and sand-making machines as new revenue sources and value-added services in both local and overseas asphalt mixing plant markets[62](index=62&type=chunk) [Other Income and Other Gains/(Losses) – Net](index=21&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E2%88%95%EF%BC%88%E虧損%EF%BC%89%E6%B7%A8%E9%A1%8D) Other income and other gains – net increased primarily due to a significant rise in net exchange gains, reversing prior year's losses - The increase in other income and other gains – net was primarily due to an increase in net exchange gains of **1.6 million RMB** (2024: exchange losses of **1.2 million RMB**)[63](index=63&type=chunk) [Distribution Costs](index=21&type=section&id=%E5%88%86%E9%8A%B7%E6%88%90%E6%9C%AC) Distribution costs increased by 52%, aligning with revenue growth, driven by higher logistics, sales staff, commissions, marketing, and warranty expenses - Distribution costs increased by **52%**, consistent with revenue growth, primarily driven by higher logistics expenses, sales and marketing staff costs, distributor commissions, marketing costs, and warranty costs[64](index=64&type=chunk) [Administrative Expenses](index=22&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) Administrative expenses rose 3.3%, mainly due to increased R&D and employee costs, partially offset by reduced legal and professional fees - Administrative expenses increased by **3.3%**, primarily due to higher R&D costs and employee costs[65](index=65&type=chunk) [Impairment Loss on Trade Receivables (Provision)/Reversal – Net](index=22&type=section&id=%E8%B2%A3%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E6%B8%9B%E5%80%BC%E虧損%EF%BC%88%E6%92%A5%E5%82%99%EF%BC%89%E2%88%95%E6%92%A5%E5%9B%9E%E6%B7%A8%E9%A1%8D) Net impairment loss provision for trade receivables was 33 thousand RMB, a significant reduction from prior year's reversal, due to recognizing expected credit losses on overdue receivables Impairment Loss on Trade Receivables | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Net impairment loss provision/(reversal) on trade receivables | 33 | (3,350) | [Share of Net Profit of an Associate](index=22&type=section&id=%E5%88%86%E4%BD%94%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E6%BA%A2%E5%88%A9%E6%B7%A8%E9%A1%8D) Share of net profit of an associate was 1,077 thousand RMB, mainly from Topu Financial Leasing (Shanghai) Co., Ltd., showing slight growth - Share of net profit of an associate was **1,077 thousand RMB**, primarily from the profit of Topu Financial Leasing (Shanghai) Co., Ltd[67](index=67&type=chunk) [Net Finance Income](index=22&type=section&id=%E8%B2%A1%E5%8B%99%E6%94%B6%E5%85%A5%E6%B7%A8%E9%A1%8D) Net finance income decreased, primarily due to lower interest income from bank deposits - Net finance income decreased primarily due to lower interest income from bank deposits[68](index=68&type=chunk) [Income Tax Expense](index=22&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense for the period was primarily due to deferred tax expense from warranty provisions - Income tax expense was primarily due to deferred tax expense arising from warranty provisions[69](index=69&type=chunk) [Loss Attributable to Owners of the Company](index=22&type=section&id=%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%93%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%94%E虧損) Loss attributable to owners narrowed to 4,221 thousand RMB, primarily due to increased revenue and gross profit Loss Attributable to Owners of the Company | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Loss attributable to owners of the Company | (4,221) | (5,683) | [Working Capital Management](index=22&type=section&id=%E7%87%9F%E9%81%8B%E8%B3%87%E9%87%91%E7%AE%A1%E7%90%86) Net current assets slightly decreased, current ratio fell to 2.8 times, with increased inventory and receivables, and slightly increased payables Working Capital Metrics | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Net Current Assets | 386,605 thousand RMB | 393,386 thousand RMB | -1.7% | | Current Ratio | 2.8 times | 3.3 times | -0.5 times | | Inventories | 219,295 thousand RMB | 212,960 thousand RMB | +3.0% | | Inventory Turnover Days | 276 days | 314 days | -38 days | | Trade and Bills Receivables | 212,888 thousand RMB | 169,189 thousand RMB | +25.8% | | Trade and Bills Receivables Turnover Days | 164 days | 131 days | +33 days | | Trade and Bills Payables | 117,273 thousand RMB | 90,398 thousand RMB | +29.7% | | Trade and Bills Payables Turnover Days | 133 days | 126 days | +7 days | [Liquidity and Financial Resources](index=23&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) The Group funds operations via internal cash and bank credit, with increased cash and pledged deposits, no borrowings, and operating cash flow turning positive - The Group generally funds its operations through internally generated cash flows and credit facilities granted by its principal bankers[74](index=74&type=chunk) Liquidity Position | Metric | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Cash and cash equivalents | 55,882 | 48,926 | | Pledged bank deposits | 24,986 | 21,672 | | Borrowings | Nil | Nil | - Net cash generated from operating activities was **19,485 thousand RMB** (2024: cash used in operating activities of **29,834 thousand RMB**)[75](index=75&type=chunk) [Capital Commitments](index=24&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) Contracted capital commitments for property, plant, and equipment were 663 thousand RMB, with guarantees for customer finance leases through Shanghai Topu up to 94,333 thousand RMB Capital Commitments | Metric | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Contracted – Property, plant and equipment | 663 | 648 | - The Group provides guarantees to Shanghai Topu for finance leases provided to customers for the purchase of the Group's equipment, with a maximum guarantee amount of **94,333 thousand RMB**[77](index=77&type=chunk) [Pledge of Assets](index=24&type=section&id=%E8%B3%87%E7%94%A2%E8%B3%AA%E6%8A%BC) Property, plant, and equipment, land use rights, and bank deposits were pledged to secure bills payable and bank financing as of June 30, 2025 - Property, plant and equipment (**23,619 thousand RMB**), land use rights (**4,116 thousand RMB**), and bank deposits (**24,986 thousand RMB**) are pledged to secure the Group's bills payable and bank financing[78](index=78&type=chunk) [Foreign Exchange Risk](index=24&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) The Group faces foreign exchange risk from USD and EUR denominated transactions, with management monitoring but no hedging instruments used during the period - The Group is exposed to foreign exchange risk arising from sales and purchases denominated in foreign currencies, including **USD** and **EUR**[79](index=79&type=chunk) - For the six months ended June 30, 2025, the Group did not use any financial instruments for hedging purposes[79](index=79&type=chunk) [Material Investments and Material Acquisitions or Disposals](index=24&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E5%8F%8A%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E6%88%96%E5%87%BA%E5%94%AE) The Group had no material investments, acquisitions, or disposals for the six months ended June 30, 2025 - For the six months ended June 30, 2025, the Group had no material investments or material acquisitions or disposals[80](index=80&type=chunk) [Employees and Remuneration Policy](index=25&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group had 352 employees with total staff costs of 38,502 thousand RMB, and remuneration is performance-based, with no share options granted Employee Information | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of Employees | 352 | 330 | | Total Staff Costs | 38,502 thousand RMB | 33,511 thousand RMB | - Remuneration policy is formulated based on employee performance, market conditions, business needs, and expansion plans, including salaries, discretionary bonuses, and provident fund scheme contributions[81](index=81&type=chunk) - No share options were granted for the six months ended June 30, 2025 and 2024[81](index=81&type=chunk) [Interim Dividends](index=25&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The board did not recommend any interim dividends for the six months ended June 30, 2025 - For the six months ended June 30, 2025, the board of directors did not recommend the payment of any interim dividends[82](index=82&type=chunk) [Purchase, Sale or Redemption of the Company’s Listed Securities](index=25&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%9A%84%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) The company repurchased 5,184,000 shares and cancelled 12,424,000 shares, with no sales of listed securities during the six months ended June 30, 2025 - The company repurchased a total of **5,184,000** of its own shares at a total cost of approximately **2,962 thousand RMB**[83](index=83&type=chunk) - The company cancelled **12,424,000** shares with a total value of approximately **7,795 thousand RMB**[83](index=83&type=chunk) [Corporate Governance](index=25&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The Group maintains high corporate governance, complying with Listing Rules, with the review committee confirming interim results and directors' compliance, and Ms. Cai Qunli appointed as Chairman - The company complies with all code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules, except for the roles of Chairman and Chief Executive Officer being combined by Ms. Cai Qunli, for which the Board has taken measures to maintain effective checks and balances[84](index=84&type=chunk) - All directors have confirmed compliance with the Model Code for Securities Transactions set out in Appendix C3 of the Listing Rules for the entire period of the six months ended June 30, 2025[85](index=85&type=chunk) - The interim results have been reviewed by the Audit Committee and by PricewaterhouseCoopers in accordance with Hong Kong Standard on Review Engagements 2410[86](index=86&type=chunk)[87](index=87&type=chunk) - Mr. Cai Hongneng resigned as Chairman and Executive Director of the company, and Ms. Cai Qunli was appointed as Chairman, effective **June 23, 2025**[88](index=88&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=27&type=section&id=%E5%88%8A%E7%99%BC%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%91%8A%E5%8F%8A%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) The interim results announcement is published on HKEX and company websites, with the interim report to be dispatched to shareholders in due course - The interim results announcement has been published on the website of Hong Kong Exchanges and Clearing Limited (www.hkexnews.hk) and the company's website (www.dgtechnology.com)[90](index=90&type=chunk) [Board of Directors](index=27&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83) As of the announcement date, the Board comprises four executive, two non-executive, and three independent non-executive directors, with Ms. Cai Qunli as Chairman - As of the announcement date, the company's executive directors are Ms. Cai Qunli, Mr. Cai Hanting, Mr. Liu Jingzhi, and Mr. Liu Jinzhi[92](index=92&type=chunk) - The non-executive directors are Mr. Chen Linghong and Mr. Alain Vincent Fontaine; the independent non-executive directors are Mr. Au Yeung Wai Lap, Mr. Li Wai Yat, and Mr. Fok Wai Shun[92](index=92&type=chunk)

簡明綜合損益及其他全面收益表 截至二零二五年六月三十日止六個月 | | | 截至 | 截至 | | --- | --- | --- | --- | | | | 二零二五年 | 二零二四年 | | | | 六月三十日 | 六月三十日 | | | 附註 | 止六個月 | 止六個月 | | | | 人民幣千元 | 人民幣千元 | | | | （未經審核）（未經審核） | | | 收入 | 3,4 | 506,538 | 423,868 | | 銷售成本 | | (329,470) | (263,246) | | 毛利 | | 177,068 | 160,622 | | 其他收入 | | 2,623 | 4,740 | | 其他收益及虧損 | 5 | 1,363 | 11,104 | | 銷售及分銷成本 | | (25,729) | (24,995) | | 行政開支 | | (82,300) | (79,989) | | 金融資產減值虧損淨值 | | 2,186 | (1,559) | | 應佔聯營公司業績 | | 141 | 228 | | 融資成本 | | (17,923) | (20,677) | | 除所得 ...

[Important Notice](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) This section outlines key disclosures including profit distribution, forward-looking statements, management's responsibility, and major risks [Profit Distribution Plan](index=2&type=section&id=%E5%88%A9%E6%BD%A4%E5%88%86%E9%85%8D%E9%A0%90%E6%A1%88) The company's board has approved the 2025 interim profit distribution plan, proposing a cash dividend of RMB 1.20 (tax inclusive) per 10 shares to A-share and H-share holders, totaling approximately RMB 1.012 billion, representing 29.23% of the net profit attributable to parent company shareholders for the first half 2025 Interim Profit Distribution Plan | Indicator | Amount/Ratio | | :--- | :--- | | Cash dividend per 10 shares | RMB 1.20 (tax inclusive) | | Total proposed cash dividend | RMB 1,012,211,857.32 | | % of H1 net profit attributable to parent company shareholders | 29.23% | - A-shares in the company's share repurchase special account will not participate in dividend distribution[5](index=5&type=chunk) [Risk Statement for Forward-Looking Statements](index=2&type=section&id=%E5%89%8D%E7%9E%BB%E6%80%A7%E9%99%B3%E8%BF%B0%E7%9A%84%E9%A2%A8%E9%9A%AA%E8%81%B2%E6%98%8E) The report may contain forward-looking statements, and investors should be aware of associated investment risks, not over-relying on them, as the company is not obligated to update or revise such statements publicly - Forward-looking statements (e.g., future plans and development strategies) in the report carry investment risks, and the company is not obligated to update them[5](index=5&type=chunk) [Board of Directors, Supervisory Committee, and Management Statement](index=2&type=section&id=%E4%B8%80%E3%80%81%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E6%9C%83%E3%80%81%E7%9B%A3%E4%BA%8B%E6%9C%83%E5%8F%8A%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%A3%E4%BA%8B%E3%80%81%E9%AB%98%E7%B4%9A%E7%AE%A1%E7%90%86%E4%BA%BA%E5%93%A1%E4%BF%9D%E8%AD%89%E5%8D%8A%E5%B9%B4%E5%BA%A6%E5%A0%B1%E5%91%8A%E5%85%A7%E5%AE%B9%E7%9A%84%E7%9C%9F%E5%AF%A6%E6%80%A7%E3%80%81%E6%BA%96%E7%A2%BA%E6%80%A7%E3%80%81%E5%AE%8C%E6%95%B4%E6%80%A7%EF%BC%8C%E4%B8%8D%E5%AD%98%E5%9C%A8%E8%99%9B%E5%81%87%E8%A8%98%E8%BC%89%E3%80%81%E8%AA%A4%E5%B0%8E%E6%80%A7%E9%99%B3%E8%BF%B0%E6%88%96%E9%87%8D%E5%A4%A7%E9%81%BA%E6%BC%8F%EF%BC%8C%E4%B8%A6%E6%89%BF%E6%93%94%E5%80%8B%E5%88%A5%E5%92%8C%E9%80%A3%E5%B8%B6%E7%9A%84%E6%B3%95%E5%BE%8B%E8%B2%AC%E4%BB%BB%E3%80%82) The company's board, supervisory committee, and all directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of the interim report content, assuming individual and joint legal responsibility - The company's Board, Supervisory Committee, and management declare the interim report content is true, accurate, and complete, assuming legal responsibility[6](index=6&type=chunk) - The 2025 interim financial report has been reviewed by KPMG, with data presented in RMB[6](index=6&type=chunk) [Major Risk Disclosures](index=3&type=section&id=%E5%8D%81%E3%80%81%E9%87%8D%E5%A4%A7%E9%A2%A8%E9%9A%AA%E6%8F%90%E7%A4%BA) The company's operations are influenced by macroeconomic factors, policies, and market fluctuations, facing inherent risks such as policy, market, credit, operational, liquidity, IT, reputation, and money laundering risks - The company's business is directly affected by macroeconomic conditions, financial policies, and capital market fluctuations[8](index=8&type=chunk) - Key risks include: policy risk, market risk, credit risk, operational risk, liquidity risk, information technology risk, reputation risk, and money laundering risk[9](index=9&type=chunk) - The company has established a comprehensive risk management system to cover and manage these risks[9](index=9&type=chunk) [Section 1 Definitions](index=6&type=section&id=%E7%AC%AC%E4%B8%80%E7%AF%80%E2%80%83%E9%87%8B%E7%BE%A9) This section provides definitions of common terms used throughout the report to ensure clarity and accurate understanding [Definitions of Common Terms](index=6&type=section&id=%E5%B8%B8%E7%94%A8%E8%A9%9E%E8%AA%9E%E9%87%8B%E7%BE%A9) This section defines common terms used in the report, including share types (A-shares, H-shares), company entities (Orient Securities, Group subsidiaries), regulatory bodies, laws, and business types, ensuring accurate report understanding - Defines core terms such as A-shares, H-shares, Board of Directors, Company/Our Company/Parent Company/Orient Securities, Group/Our Group/We[17](index=17&type=chunk)[18](index=18&type=chunk) - Clarifies the reporting period as January 1, 2025, to June 30, 2025[19](index=19&type=chunk) - Specifically notes that data in the report may have rounding differences[19](index=19&type=chunk) [Section 2 Company Profile and Key Financial Indicators](index=9&type=section&id=%E7%AC%AC%E4%BA%8C%E7%AF%80%E2%80%83%E5%85%AC%E5%8F%B8%E7%B0%A1%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B2%A1%E5%8B%99%E6%8C%87%E6%A8%99) This section provides an overview of the company's fundamental information, including registration details, contact information, stock overview, and key financial performance metrics [Company Information](index=9&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF) This section presents the company's basic registration details, legal representative, registered capital, and net capital, along with a detailed list of 84 business licenses covering securities, futures, asset management, and investment banking - Company Chinese name: 东方证券股份有限公司, English abbreviation: DFZQ[20](index=20&type=chunk) - Legal Representative: Gong Dexiong, General Manager: Lu Dayin[20](index=20&type=chunk) Company Registered Capital and Net Capital | Indicator | End of Current Reporting Period (RMB) | End of Previous Year (RMB) | | :--- | :--- | :--- | | Registered Capital | 8,496,645,292.00 | 8,496,645,292.00 | | Net Capital | 57,480,610,892.61 | 53,848,274,965.67 | - The company has a broad business scope, including securities business, securities investment consulting, futures introducing broker business, and holds **84 business licenses**[23](index=23&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk) [Contact Persons and Information](index=16&type=section&id=%E4%BA%8C%E3%80%81%E8%81%AF%E7%B9%AB%E4%BA%BA%E5%92%8C%E8%81%AF%E7%B9%AB%E6%96%B9%E5%BC%8F) This section provides contact information for the company's Board Secretary and Securities Affairs Representative, including names, addresses, phone numbers, faxes, and email addresses, for investor communication - Board Secretary is Wang Rufeng, Securities Affairs Representative is Li Tingting, both located at 11th Floor, 119 South Zhongshan Road, Huangpu District, Shanghai, China[31](index=31&type=chunk) [Brief Introduction to Basic Information](index=16&type=section&id=%E4%B8%89%E3%80%81%E5%9F%BA%E6%9C%AC%E6%83%85%E6%B3%81%E7%B0%A1%E4%BB%8B) This section outlines the company's registered and office addresses (including Hong Kong business address), website, email, and investor relations and brokerage customer service hotlines, providing essential contact and operational details - The company's registered and office address is Orient Securities Building, 119 South Zhongshan Road, Huangpu District, Shanghai, China, with a Hong Kong business address at 100 Queen's Road Central[32](index=32&type=chunk) - The company website is www.dfzq.com.cn, and the investor relations hotline is +86-021-63326373[32](index=32&type=chunk) [Information Disclosure and Document Availability](index=17&type=section&id=%E5%9B%9B%E3%80%81%E4%BF%A1%E6%81%AF%E6%8A%AB%E9%9C%B2%E5%8F%8A%E5%82%99%E7%BD%AE%E5%9C%B0%E9%BB%9E) This section lists the company's selected information disclosure newspapers and their website addresses, as well as the location where the interim report is available, ensuring transparency and accessibility of information - Company information disclosure newspapers include China Securities Journal, Shanghai Securities News, Securities Daily, and Securities Times[33](index=33&type=chunk) - The interim report is published on the SSE (www.sse.com.cn) and HKEX (www.hkexnews.hk) websites[33](index=33&type=chunk) [Company Stock Overview](index=17&type=section&id=%E4%BA%94%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E7%A5%A8%E7%B0%A1%E6%B3%81) This section provides the listing exchanges, stock abbreviations, and stock codes for the company's A-shares and H-shares, facilitating investor inquiry into trading information Company Stock Information | Stock Type | Listing Exchange | Stock Abbreviation | Stock Code | | :--- | :--- | :--- | :--- | | A-share | SSE | Orient Securities | 600958 | | H-share | HKEX | Orient Securities | 03958 | [Other Relevant Information](index=17&type=section&id=%E5%85%AD%E3%80%81%E5%85%B6%E4%BB%96%E6%9C%89%E9%97%9C%E8%B3%87%E6%96%99) This section discloses information on the domestic and international accounting firms, signing accountants, Chief Risk Officer and Compliance Director, domestic and international legal advisors, and A-share and H-share share registrars - The company engages KPMG Huazhen LLP (domestic) and KPMG (international) for auditing[35](index=35&type=chunk) - The Chief Risk Officer and Compliance Director is Jiang Helei[35](index=35&type=chunk) [Key Accounting Data and Financial Indicators](index=18&type=section&id=%E4%B8%83%E3%80%81%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E6%9C%83%E8%A8%88%E6%95%B8%E6%93%9A%E5%92%8C%E8%B2%A1%E5%8B%99%E6%8C%87%E6%A8%99) In H1 2025, the company's operating performance grew significantly, with revenue and other income increasing by 26.72% to RMB 12.325 billion, and net profit attributable to shareholders rising by 64.02% to RMB 3.463 billion Key Accounting Data (Consolidated) | Item | Jan-Jun 2025 (RMB '000) | Jan-Jun 2024 (RMB '000) | Current Period vs. Prior Period (%) | | :--- | :--- | :--- | :--- | | Revenue, other income and gains | 12,324,631 | 9,725,722 | 26.72 | | Profit before income tax | 4,293,630 | 2,271,075 | 89.06 | | Profit for the period－attributable to parent company shareholders | 3,463,071 | 2,111,371 | 64.02 | | Net cash (used in)/generated from operating activities | (12,843,799) | 514,675 | -2,595.52 | | Basic earnings per share (RMB/share) | 0.40 | 0.24 | 66.67 | | Weighted average return on net assets (%) | 4.27 | 2.66 | Increase of 1.61 percentage points | Scale Indicators (Consolidated) | Item | Jun 30, 2025 (RMB '000) | Dec 31, 2024 (RMB '000) | End of Current Period vs. End of Prior Year (%) | | :--- | :--- | :--- | :--- | | Total Assets | 437,358,182 | 417,736,375 | 4.70 | | Total Liabilities | 352,523,191 | 336,336,559 | 4.81 | | Equity attributable to parent company shareholders | 84,832,083 | 81,396,740 | 4.22 | | Net assets per share attributable to parent company shareholders (RMB/share) | 10.06 | 9.62 | 4.57 | | Asset-liability ratio (%) | 73.25 | 73.20 | Increase of 0.05 percentage points | Parent Company Net Capital and Risk Control Indicators | Item | End of Current Reporting Period (RMB '000) | End of Previous Year (RMB '000) | | :--- | :--- | :--- | | Net Capital | 57,480,611 | 53,848,275 | | Risk Coverage Ratio (%) | 436.72 | 373.48 | | Capital Leverage Ratio (%) | 18.59 | 18.13 | | Liquidity Coverage Ratio (%) | 192.24 | 202.82 | | Net Stable Funding Ratio (%) | 139.38 | 148.83 | [Differences in Accounting Data under Domestic and International Accounting Standards](index=20&type=section&id=%E5%A2%83%E5%85%A7%E5%A4%96%E6%9C%83%E8%A8%88%E6%BA%96%E5%89%87%E4%B8%8B%E6%9C%83%E8%A8%88%E6%95%B8%E6%93%9A%E5%B7%AE%E7%95%B0) The company's consolidated financial statements prepared under China Accounting Standards and International Financial Reporting Standards show no differences in net profit for January-June 2025 and net assets as of June 30, 2025, and December 31, 2024 - There are no differences in the company's net profit and net asset data under domestic and international accounting standards[42](index=42&type=chunk) [Section 3 Board of Directors' Report](index=21&type=section&id=%E7%AC%AC%E4%B8%89%E7%AF%80%E2%80%83%E8%91%A3%E4%BA%8B%E6%9C%83%E5%A0%B1%E5%91%8A) This section provides a comprehensive overview of the company's industry, business operations, core competencies, and key financial performance during the reporting period [Industry and Principal Business Overview](index=21&type=section&id=%E4%B8%80%E3%80%81%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%85%A7%E5%85%AC%E5%8F%B8%E6%89%80%E5%B1%AC%E8%A1%8C%E6%A5%AD%E5%8F%8A%E4%B8%BB%E7%87%9F%E6%A5%AD%E5%8B%99%E6%83%85%E6%B3%81%E8%AA%AA%E6%98%8E) In H1 2025, China's economy improved with capital market reforms, and the securities industry transformed towards high-quality development, with the company leveraging its "group-based, digital, international" strategy to build three major business systems - In H1 2025, China's economy improved, capital market reforms deepened, and the A-share market generally trended upwards, with the Beijing Stock Exchange 50 Index leading[43](index=43&type=chunk)[44](index=44&type=chunk)[45](index=45&type=chunk) - The securities industry accelerated its transformation towards high-quality development, with leading brokers expanding through M&A, and smaller brokers seeking specialized development[45](index=45&type=chunk) - The company is positioned as a comprehensive securities firm, offering full-range services including securities, futures, asset management, and investment banking[45](index=45&type=chunk) - Strategic drivers: Centered on “group-based, digital, and international”[45](index=45&type=chunk) - Business systems: Building large wealth, large investment banking, and large institutional business systems[47](index=47&type=chunk) - Business segments: Creating four major segments: wealth and asset management, investment banking and alternative investments, institutional and sales & trading, and international and other businesses[48](index=48&type=chunk) - Profit model: Through fee and commission income, interest income, investment gains, etc[48](index=48&type=chunk) [Discussion and Analysis of Operations](index=23&type=section&id=%E4%BA%8C%E3%80%81%E7%B6%93%E7%87%9F%E6%83%85%E6%B3%81%E7%9A%84%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) In H1 2025, the company actively implemented its new three-year strategic plan, focusing on wealth management, investment banking, and institutional services, achieving coordinated development in scale, efficiency, and quality across all business segments - The company, aiming to be a first-class modern investment bank, actively advanced its new three-year strategic plan, focusing on wealth management, investment banking, and institutional services, achieving coordinated development in scale, efficiency, and quality[49](index=49&type=chunk) [Wealth and Asset Management](index=24&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E8%B2%A1%E5%AF%8C%E5%8F%8A%E8%B3%87%E7%94%A2%E7%AE%A1%E7%90%86) Wealth and asset management segment continued to deepen its "buyer-side advisory" model, with steady growth in client base and assets under custody, and strong performance across fund advisory, brokerage asset management, private equity, and futures businesses - The company optimized its organizational structure for wealth management, establishing four branches to build a client-centric comprehensive service platform and advance towards a “buyer-side advisory” model[50](index=50&type=chunk) [Wealth Management](index=24&type=section&id=1%20%E8%B2%A1%E5%AF%8C%E7%AE%A1%E7%90%86) Wealth management business developed steadily amidst A-share market stabilization, with client accounts growing 7.52% to 3.139 million and assets under custody increasing 9.21% to RMB 959.3 billion - As of the end of the reporting period, the company's total client accounts reached **3.139 million**, a **7.52% increase** from the beginning of the year[52](index=52&type=chunk) - Total assets under custody were **RMB 959.3 billion**, a **9.21% increase** from the beginning of the year[52](index=52&type=chunk) - New clients increased by **228,000**, and new account assets introduced were **RMB 24.5 billion**, up **90%** and **45%** year-on-year, respectively[52](index=52&type=chunk) - Branch equity and fund trading market share was **1.35%**, an increase of **0.44 percentage points** year-on-year[52](index=52&type=chunk) - Non-money market product sales amounted to **RMB 11.728 billion**, a **24.54% increase** year-on-year[53](index=53&type=chunk) - Non-money market product holdings were **RMB 56.583 billion**, a **1.36% increase** from the beginning of the year[53](index=53&type=chunk) Group Financial Product Sales (RMB 100 million) | Product Type | Jan-Jun 2025 | Jan-Jun 2024 | | :--- | :--- | :--- | | Public Funds (incl. money market) | 873.50 | 541.62 | | Trust Plans | 19.87 | 20.76 | | Private Equity Funds | 4.76 | 1.08 | | Other Financial Products | 8.60 | 21.29 | | Total | 906.74 | 584.75 | - Retail high-net-worth clients numbered **8,985**, a **12.13% increase** from the beginning of the year, with total assets of **RMB 207.025 billion**, an **11.28% increase** from the beginning of the year[54](index=54&type=chunk) - The new-generation low-latency centralized trading system was successfully launched, significantly improving business processing efficiency and client service experience[56](index=56&type=chunk) - The Orient Winner APP introduced the Winner T0 strategy trading tool, Winner 50 fund strategy pool, and advisory zone services, enhancing client investment efficiency and satisfaction[56](index=56&type=chunk) [Fund Advisory Business](index=28&type=section&id=2%20%E5%9F%BA%E9%87%91%E6%8A%95%E9%A1%A7%E6%A5%AD%E5%8B%99) Fund advisory business developed steadily amid recovering demand for household wealth management, launching 28 portfolio strategies, with assets under management reaching RMB 14.925 billion and 110,400 existing clients - Fund advisory business launched **28 portfolio strategies**, covering three product lines: “Yue” series, “Ding” series, and customized series[58](index=58&type=chunk) - As of the end of the reporting period, fund advisory assets under management reached **RMB 14.925 billion**[58](index=58&type=chunk) - Existing client count was **110,400**, with a client retention rate of **52.83%** and a re-investment rate of **75.95%**[58](index=58&type=chunk) [Credit Trading Business](index=29&type=section&id=3%20%E4%BF%A1%E7%94%A8%E4%BA%A4%E6%98%93%E6%A5%AD%E5%8B%99) Credit trading business operated steadily amidst market fluctuations, with margin financing and securities lending balance at RMB 26.916 billion, a market share of 1.45% - As of the end of the reporting period, the total market balance of margin financing and securities lending was **RMB 1,850.452 billion**, a **0.76% decrease** from the end of the previous year[60](index=60&type=chunk) - The company's margin financing and securities lending balance was **RMB 26.916 billion**, with a market share of **1.45%** and an average maintenance guarantee ratio of **278.44%**[60](index=60&type=chunk) - The company's stock pledge business outstanding repurchase balance was **RMB 2.778 billion**, a **4.11% decrease** from the end of the previous year, all funded by proprietary capital[61](index=61&type=chunk) - Future plans include cultivating new profit growth points through structural optimization, refined management, and improved risk control measures[61](index=61&type=chunk) [Asset Management](index=30&type=section&id=4%20%E8%B3%87%E7%94%A2%E7%AE%A1%E7%90%86) Asset management business is conducted through Orient Asset Management, Huitianfu Fund, and Orient Capital, with AUM stabilizing and growing across public funds, private equity, and brokerage asset management - The company primarily conducts brokerage asset management through its wholly-owned subsidiary Orient Asset Management, fund management through its associate Huitianfu Fund, and private equity investment through its wholly-owned subsidiary Orient Capital[62](index=62&type=chunk) [(1) Brokerage Asset Management Business](index=30&type=section&id=%281%29%20%E5%88%B8%E5%95%86%E8%B3%87%E7%AE%A1%E6%A5%AD%E5%8B%99) Orient Asset Management accelerated its transformation in H1 2025, continuously improving its investment research, product, and sales systems, driving a stabilization and rebound in total AUM to RMB 233.781 billion - Orient Asset Management had several successful product launches, with Orient Red Core Value raising **RMB 1.991 billion** and Orient Red Yingfeng FOF raising over **RMB 6.5 billion**[65](index=65&type=chunk) - Its equity funds achieved an absolute return of **80.32% over 10 years**, ranking **2nd** in the industry; fixed-income funds achieved an absolute return of **35.98% over 7 years**, ranking among the **top 20**[65](index=65&type=chunk) Orient Asset Management AUM (RMB 100 million) | Product Type | As of Jun 30, 2025 | As of Dec 31, 2024 | | :--- | :--- | :--- | | Collective Asset Management Plans | 208.80 | 203.07 | | Single Asset Management Plans | 280.66 | 246.53 | | Special Asset Management Plans | 56.99 | 54.40 | | Brokerage Public Funds | 1,791.36 | 1,661.69 | | Total | 2,337.81 | 2,165.68 | [(2) Fund Management Business](index=33&type=section&id=%282%29%20%E5%9F%BA%E9%87%91%E7%AE%A1%E7%90%86%E6%A5%AD%E5%8B%99) Huitianfu Fund, adhering to the "long-term perspective" philosophy, managed approximately RMB 1.26 trillion in total assets, with non-money market public funds exceeding RMB 550 billion, actively expanding into AI and international markets - As of the end of the reporting period, Huitianfu Fund's total assets under management were approximately **RMB 1.26 trillion**, an increase of over **8.7%** from the beginning of the year[68](index=68&type=chunk) - Public fund assets, excluding money market funds, exceeded **RMB 550 billion**, an increase of approximately **11%** from the beginning of the year[68](index=68&type=chunk) - During the reporting period, **22 public funds** were established, with a total issuance size of approximately **RMB 11.2 billion**[68](index=68&type=chunk) - Successfully issued the **first domestic REIT for pharmaceutical warehousing and logistics** and the **first "commercial-to-rental housing" REITs project** in China[69](index=69&type=chunk) - Huitianfu CSI 300 ETF launched in the Brazilian market, becoming the **first ETF Connect product** between the SSE and B3[69](index=69&type=chunk) - The company was the **first to complete private deployment of the DeepSeek series open-source models** and successfully launched the "DeepSeek in Cash宝" service[69](index=69&type=chunk) [(3) Private Equity Investment Funds](index=35&type=section&id=%283%29%20%E7%A7%81%E5%8B%9F%E8%82%A1%E6%AC%8A%E6%8A%95%E8%B3%87%E5%9F%BA%E9%87%91) Orient Capital focused on tech innovation and M&A, expanding its fund-of-funds business in fundraising and targeting quality sectors like semiconductors, robotics & AI, and new energy in investments - Orient Capital focused on **tech innovation and M&A**[70](index=70&type=chunk) - As of the end of the reporting period, it managed **58 funds** with a total AUM of **RMB 18.91 billion**, adding **4 new funds** and **RMB 1.18 billion** in new scale[70](index=70&type=chunk) - It invested in **128 projects** with a total investment of **RMB 7.029 billion**, including **5 existing listed companies**[70](index=70&type=chunk) - During the reporting period, **2 target companies' IPO applications were approved**, and **3 target companies had filed IPO applications and were accepted**[70](index=70&type=chunk) [Futures Business](index=36&type=section&id=5%20%E6%9C%9F%E8%B2%A8%E6%A5%AD%E5%8B%99) Orient Futures actively responded to external challenges, with national futures market trading volume and value increasing by 17.82% and 20.68% respectively in H1 2025, achieving business growth and management optimization - In H1 2025, the national futures market's cumulative trading volume was **4.076 billion lots**, with a trading value of **RMB 339.73 trillion**, increasing by **17.82%** and **20.68%** year-on-year, respectively[72](index=72&type=chunk) - As of end-June, Orient Futures ranked **third** in brokered trading volume market share and client equity scale, and **fourth** in net profit[72](index=72&type=chunk) - Orient Futures accelerated its overseas expansion, providing personalized hedging and investment solutions for global clients[73](index=73&type=chunk) - It promoted financial technology to empower industry services, relying on four major fintech innovation platforms, including the Fanwei Intelligent Investment Research Platform and Orient Swift Extreme Trading System[73](index=73&type=chunk) [Investment Banking and Alternative Investments](index=37&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%E6%8A%95%E8%A1%8C%E5%8F%8A%E5%8F%A6%E9%A1%9E%E6%8A%95%E8%B3%87) The investment banking and alternative investments segment performed actively in H1 2025, with strong bond underwriting, active M&A advisory, and focused "early-stage, small-cap, hard tech" equity investments - The company primarily conducts investment banking through its Investment Banking Management Committee and Fixed Income Business Headquarters, and alternative investments through its wholly-owned subsidiary Orient Innovation[75](index=75&type=chunk)[83](index=83&type=chunk) [Investment Banking](index=37&type=section&id=1%20%E6%8A%95%E8%B3%87%E9%8A%80%E8%A1%8C) Investment banking showed new vitality amidst policy reforms, completing 10 equity financing projects and increasing bond underwriting volume by 28.00% to RMB 277.948 billion, ranking 9th - Completed **10 equity financing projects**, including **1 IPO** and **9 refinancing projects**, ranking **6th** in issuance volume[76](index=76&type=chunk) - Focused on two strategic sectors: technology and energy, with key layouts in new-generation information technology, biomedicine, high-end manufacturing, and new materials[77](index=77&type=chunk) - In H1, bond underwriting volume totaled **RMB 277.948 billion**, a **28.00% increase** year-on-year, ranking **9th** in the market[78](index=78&type=chunk) - Interest rate bond underwriting volume significantly increased by **48.08%** year-on-year, with book-entry interest-bearing government bonds, CDB, and ADBC bond underwriting all ranking **first** among brokers[79](index=79&type=chunk) - Actively participated in and underwrote tech innovation bonds issued by several companies, assisting in the successful issuance of CDB's first tech innovation bond[79](index=79&type=chunk) - Vigorously developed innovative products such as green bonds, rural revitalization corporate bonds, and small and micro financial bonds[79](index=79&type=chunk) Company's Underwriting Details for Various Bonds (RMB 100 million) | Transaction Item | H1 2025 Underwriting Count | H1 2025 Underwriting Amount | H1 2024 Underwriting Count | H1 2024 Underwriting Amount | | :--- | :--- | :--- | :--- | :--- | | Corporate Bonds | 195 | 603.40 | 172 | 577.69 | | Enterprise Bonds | 0 | 0 | 2 | 3.77 | | Financial Bonds | 50 | 482.76 | 23 | 221.12 | | Asset-Backed Securities | 24 | 50.67 | 45 | 61.28 | | Non-Financial Enterprise Debt Financing Instruments | 97 | 241.97 | 91 | 238.80 | | Local Government Bonds | 91 | 128.30 | 77 | 171.29 | | Total | 457 | 1,507.09 | 410 | 1,273.95 | - Actively responded to policy calls, highly valuing M&A financial advisory business, participating in the Guotai Haitong absorption merger project (the largest A+H dual-market absorption merger in China's capital market history)[81](index=81&type=chunk) - Focused on tech M&A, assisting in the progress or completion of projects such as Sci-Tech Innovation Board company Sanyou Medical's acquisition of Shuimu Tianpeng[81](index=81&type=chunk) [Alternative Investments](index=42&type=section&id=2%20%E5%8F%A6%E9%A1%9E%E6%8A%95%E8%B3%87) Orient Innovation dynamically optimized asset allocation under a prudent approach, enhancing income stability, with equity investment focusing on "early-stage, small-cap, hard tech" and special asset investments progressing steadily - Orient Innovation's equity investment had **105 existing projects** with a total scale of **RMB 4.39 billion**[83](index=83&type=chunk) - Cumulatively participated in **10 STAR Market follow-on investment projects**, investing **RMB 549 million**[83](index=83&type=chunk) - Special asset investment business had **31 existing projects** with a total scale of **RMB 2.271 billion**[83](index=83&type=chunk) [Institutional and Sales & Trading](index=43&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%E6%A9%9F%E6%A7%8B%E5%8F%8A%E9%8A%B7%E5%94%AE%E4%BA%A4%E6%98%93) The institutional and sales & trading segment performed steadily in H1 2025, with strong contributions from equity proprietary trading, significant growth in carbon finance, and leading positions in bond market-making - The company primarily conducts equity and non-equity proprietary trading through its Securities Investment Business Headquarters and Fixed Income Business Headquarters, client-driven business through its Financial Derivatives Headquarters and Fixed Income Business Headquarters, market-making through its Securities Investment Business Headquarters, Financial Derivatives Business Headquarters, and Fixed Income Business Headquarters, securities research services through its Securities Research Institute, and custody business through its Custody Business Headquarters[85](index=85&type=chunk)[88](index=88&type=chunk)[90](index=90&type=chunk)[94](index=94&type=chunk)[96](index=96&type=chunk) [Proprietary Trading](index=43&type=section&id=1%20%E8%87%AA%E7%87%9F%E6%8A%95%E8%B3%87) Proprietary trading strengthened its "multi-asset, multi-strategy, all-weather" approach amidst market volatility, with equity proprietary trading contributing well and non-equity proprietary trading showing steady growth and significant increases in interest rate swap and carbon finance trading volumes - Equity proprietary trading strengthened its “multi-asset, multi-strategy, all-weather” approach, achieving good performance contributions[85](index=85&type=chunk) - Non-equity proprietary trading saw interest rate swap trading volume increase by **221.32%** year-on-year, and non-equity ETF trading volume increase by **158%** year-on-year[86](index=86&type=chunk) - Carbon finance innovation business trading volume increased by nearly **5 times** year-on-year[86](index=86&type=chunk) - The company's self-developed Super Investment Management Platform (SIMP) has achieved full asset strategy pricing and automated trading, significantly improving investment and trading efficiency[86](index=86&type=chunk) [Client-Driven Business](index=44&type=section&id=2%20%E5%AE%A2%E9%9C%80%E6%A5%AD%E5%8B%99) Client-driven business continued to develop amidst industry standardization and increased competition, with OTC options and total return swaps showing significant trading volumes, and FICC client-driven revenue increasing - OTC option business trading volume was **RMB 5.963 billion**[88](index=88&type=chunk) - Total return swap business trading volume was **RMB 21.174 billion**, a **22.33% increase** year-on-year[89](index=89&type=chunk) - FICC client-driven revenue and its proportion further increased, achieving breakthroughs in customized financial institution services[89](index=89&type=chunk) [Market Making Business](index=45&type=section&id=3%20%E5%81%9A%E5%B8%82%E6%A5%AD%E5%8B%99) Market-making business deepened in equities, providing services for STAR Market, NEEQ, and BSE small and medium-sized enterprises, earning an A-rating as a STAR Market stock market maker from the SSE, and maintaining a leading position in bond market-making - The company provided market-making services for **10 STAR Market individual stocks**, receiving an **A-rating** as a STAR Market stock market maker from the SSE[91](index=91&type=chunk) - Equity option trading volume ranked among the **top in the industry**, with all product ratings generally maintaining **AA-level**[91](index=91&type=chunk) - Fund market-making product count reached **over 310**, an increase of over **29%** from the end of the previous year[92](index=92&type=chunk) - Market-making for financial bonds of the three policy banks continued to rank among the **top two** in the industry; SSE bond market-making for interest rate bonds and credit bonds ranked **first** and **fourth**, respectively[92](index=92&type=chunk) - During the reporting period, market-making was conducted for **17 bond ETFs** and **1 gold ETF**, with trading volume increasing by **158%** year-on-year[93](index=93&type=chunk) - Provided market-making quotes for **174 tech innovation bonds**, nearly double the number from the same period last year, and created the "Orient Securities Yangtze River Delta Tech Innovation Bond Basket" and "Orient Securities CDB Tech Innovation Bond Basket"[93](index=93&type=chunk) [Research Services](index=47&type=section&id=4%20%E7%A0%94%E7%A9%B6%E6%9C%8D%E5%8B%99) The Securities Research Institute comprehensively enhanced its research capabilities and quality, building a research system with macro as the guide, strategy as the core, and industry/company as the foundation, achieving RMB 128 million in public fund commission revenue - During the reporting period, the company published a total of **832 research reports** and provided **9,548 online and offline research roadshows** for institutional clients[95](index=95&type=chunk) - Achieved public fund commission (including special accounts, social security, and annuity seats) revenue of **RMB 128 million**, with public fund trading volume accounting for **2.26%**[95](index=95&type=chunk) [Custody Business](index=48&type=section&id=5%20%E8%A8%97%E7%AE%A1%E6%A5%AD%E5%8B%99) Custody business continuously improved its process system, deepened internal group synergy, built a classified and tiered service system, and enhanced standardized and personalized service capabilities, with outsourced securities product custody scale increasing by 8% - As of the end of the reporting period, the company's outsourced securities product custody scale increased by **8%** from the beginning of the year, with business developing steadily[97](index=97&type=chunk) [International and Other Businesses](index=49&type=section&id=%EF%BC%88%E5%9B%9B%EF%BC%89%E5%9C%8B%E9%9A%9B%E5%8F%8A%E5%85%B6%E4%BB%96%E6%A5%AD%E5%8B%99) International business, conducted through Orient Financial Holdings, Orient International and its subsidiaries, and Orient Futures Singapore subsidiary, showed "steady progress and dual improvement in quality and efficiency" amidst Hong Kong's economic recovery - Hong Kong subsidiaries' overall operations showed a positive trend of “steady progress and dual improvement in quality and efficiency,” with intermediary business becoming the main growth engine[98](index=98&type=chunk) - Custody client assets increased by **25%** from the beginning of the year, and Hong Kong stock trading volume **doubled** year-on-year[98](index=98&type=chunk) - Asset management business scale increased by **14%**, and was approved by the Hong Kong SFC to advise professional investors on virtual assets[99](index=99&type=chunk) - Investment banking's integrated domestic and international model achieved significant results, with bond investment banking completing **45 underwriting projects** and total underwriting volume increasing by **2 times** year-on-year; equity investment banking completed the IPO sponsorship of “Auntie's Tea” in Hong Kong, with Hong Kong IPO underwriting volume increasing by **4.5 times** year-on-year[99](index=99&type=chunk) - Orient Futures Singapore subsidiary actively promoted international expansion, developing brokerage business in Southeast Asia, South America, and parts of Europe[99](index=99&type=chunk) [Analysis of Core Competencies](index=51&type=section&id=%E4%B8%89%E3%80%81%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%85%A7%E5%85%AC%E5%8F%B8%E6%89%80%E5%B1%AC%E8%A1%8C%E6%A5%AD%E5%8F%8A%E4%B8%BB%E7%87%9F%E6%A5%AD%E5%8B%99%E6%83%85%E6%B3%81%E8%AA%AA%E6%98%8E) The company's core competencies lie in its excellent Party building culture, unique shareholder resources (Shenergy Group background), long-term brand advantages (asset management, public funds, fixed income, futures), professional talent team, and effective compliance and risk control system, all supporting its high-quality development - Excellent Party building culture: The **only securities firm Party committee** nationwide to be awarded “National Advanced Grassroots Party Organization” by the Organization Department of the CPC Central Committee[101](index=101&type=chunk) - Unique shareholder resources: Major shareholder Shenergy Group's energy background helps the company build an “energy investment bank, green investment bank”[101](index=101&type=chunk) - Long-term brand advantages: Leading positions in asset management (“Orient Red” brand), public funds (Huitianfu Fund), fixed income (interest rate bond underwriting, bond market making), and futures brokerage (fintech application)[102](index=102&type=chunk) - Professional talent team: Firmly advancing the “talent-driven company” strategy, building a financial talent team with “purity, professionalism, and combat effectiveness”[103](index=103&type=chunk) - Effective compliance and risk control: Adhering to “compliance-first, risk-based,” continuously rated **A-class** in securities firm classification for **16 consecutive years** (AA-class for 4 consecutive years), and included in the “white list”[103](index=103&type=chunk) [Key Operating Performance](index=52&type=section&id=%E5%9B%9B%E3%80%81%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%85%A7%E4%B8%BB%E8%A6%81%E7%B6%93%E7%87%9F%E6%83%85%E6%B3%81) In H1 2025, the company's total assets were RMB 437.358 billion, equity attributable to shareholders RMB 84.832 billion, and parent company net capital RMB 57.481 billion, all increasing from the end of the previous year - As of the end of the reporting period, the company's total assets were **RMB 437.358 billion**, a **4.70% increase** from the end of the previous year[104](index=104&type=chunk) - Equity attributable to parent company shareholders was **RMB 84.832 billion**, a **4.22% increase** from the end of the previous year[104](index=104&type=chunk) - Parent company net capital was **RMB 57.481 billion**, a **6.75% increase** from the end of the previous year[104](index=104&type=chunk) - During the reporting period, the company achieved net profit attributable to parent company shareholders of **RMB 3.463 billion**, a **64.02% increase** year-on-year[104](index=104&type=chunk) - Achieved revenue and other income of **RMB 12.325 billion**, a **26.72% increase** year-on-year[104](index=104&type=chunk) Segment Revenue and Profit Margin (RMB '000) | Segment | Segment Revenue and Other Income | Segment Expenses | Profit Margin (%) | YoY Change in Segment Revenue and Other Income (%) | YoY Change in Segment Expenses (%) | YoY Change in Profit Margin (percentage points) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Wealth and Asset Management | 5,052,448 | 4,338,381 | 15.68 | 15.53 | (1.46) | Increase of 10.90 | | Investment Banking and Alternative Investments | 992,555 | 401,781 | 65.30 | 33.42 | (37.54) | Increase of 50.61 | | Institutional and Sales & Trading | 5,055,255 | 2,225,288 | 55.98 | 29.89 | 7.85 | Increase of 9.00 | | International Business and Others | 2,450,635 | 2,623,761 | 1.34 | (28.20) | 23.73 | Decrease of 35.65 | - Changes in revenue and other income were primarily due to year-on-year increases in **investment gains from proprietary trading**, and **fee income from brokerage and investment banking**, as well as a year-on-year decrease in expenses such as **credit impairment losses**[108](index=108&type=chunk) - Commission and fee income was **RMB 5.129 billion**, accounting for **41.62%** of total revenue, an increase of **14.94%**[109](index=109&type=chunk) - Net investment gains were **RMB 4.020 billion**, accounting for **32.62%** of total revenue, an increase of **76.69%**[110](index=110&type=chunk) Revenue, Other Income and Gains Structure (RMB '000) | Item | Jan-Jun 2025 Amount | Jan-Jun 2025 Structure (%) | Jan-Jun 2024 Amount | Jan-Jun 2024 Structure (%) | Change in Amount | Change in Percentage (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Commission and Fee Income | 5,129,012 | 41.62 | 4,462,488 | 45.88 | 666,524 | 14.94 | | Interest Income | 2,765,256 | 22.43 | 2,776,347 | 28.55 | (11,091) | -0.40 | | Net Investment Gains | 4,020,355 | 32.62 | 2,275,382 | 23.40 | 1,744,973 | 76.69 | | Other Income and Gains | 410,008 | 3.33 | 211,505 | 2.17 | 198,503 | 93.85 | | Total Revenue and Other Income | 12,324,631 | 100.00 | 9,725,722 | 100.00 | 2,598,909 | 26.72 | - Total expenses were **RMB 8.373 billion**, a **9.03% increase** year-on-year, primarily due to increases in **employee costs, interest expenses, and commission and fee expenses**[113](index=113&type=chunk) - Credit impairment losses were **RMB -0.004 billion**, mainly due to a decrease in credit impairment losses related to stock pledge repurchase business[113](index=113&type=chunk) Total Expenses Structure (RMB '000) | Item | Jan-Jun 2025 | Jan-Jun 2024 | Change in Amount | Change in Percentage (%) | | :--- | :--- | :--- | :--- | :--- | | Employee Costs | 2,477,036 | 1,877,911 | 599,125 | 31.90 | | Interest Expenses | 2,303,021 | 2,082,326 | 220,695 | 10.60 | | Commission and Fee Expenses | 2,242,901 | 1,981,346 | 261,555 | 13.20 | | Depreciation and Amortization | 391,226 | 403,693 | (12,467) | -3.09 | | Other Expenses | 961,873 | 1,023,106 | (61,233) | -5.99 | | Credit Impairment Losses | (3,765) | 312,138 | (315,903) | -101.21 | | Other Impairment Losses | 271 | (1,115) | 1,386 | Not applicable | | Total | 8,372,563 | 7,679,405 | 693,158 | 9.03 | - Net decrease in cash and cash equivalents was **RMB 0.047 billion**[116](index=116&type=chunk) - Net cash used in operating activities was **RMB 12.844 billion**, primarily due to an increase in **financial assets at fair value through profit or loss and derivative financial assets**[117](index=117&type=chunk) - Net cash generated from investing activities was **RMB 13.973 billion**, primarily due to **net cash inflow from investments and disposal of financial investments**[117](index=117&type=chunk) - Net cash used in financing activities was **RMB 1.176 billion**, primarily due to **payment of interest on bonds, short-term payables, and borrowings, as well as dividends**[117](index=117&type=chunk) - As of the end of the reporting period, the Group's total assets were **RMB 437.358 billion**, total liabilities **RMB 352.523 billion**, and total equity **RMB 84.835 billion**[118](index=118&type=chunk) - Total assets increased by **4.70%**, mainly due to increases in **financial assets at fair value through profit or loss** and **equity instruments at fair value through other comprehensive income**[123](index=123&type=chunk) - Total liabilities increased by **4.81%**, and after deducting accounts payable to brokerage clients, the asset-liability ratio was **73.25%**[125](index=125&type=chunk) Borrowings and Bond Financing Details (RMB '000) | Item | Jun 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Issued Debt Securities | 59,190,632 | 60,734,318 | | Borrowings | 1,748,727 | 1,549,417 | | Short-term Debt Instruments | 4,130,895 | 5,678,905 | | Funds Borrowed | 29,327,263 | 39,194,625 | | Total | 94,397,517 | 107,157,265 | - The Group's investment in associates was **RMB 6.060 billion**, a **1.11% decrease** from the end of the previous year, mainly due to declared dividends and net decrease in investments by associates, partially offset by investment income recognized under the equity method[128](index=128&type=chunk) - During the reporting period, the company had no significant equity or non-equity investments, and no future plans for major investments or capital asset purchases[131](index=131&type=chunk) Key Subsidiary Financial Data (RMB 100 million) | Company Name | Company Type | Registered Capital | Total Assets | Net Assets | Operating Revenue | Operating Profit | Net Profit | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Orient Futures | Wholly-owned subsidiary | 48 | 952.34 | 63.88 | 8.15 | 3.22 | 2.63 | | Orient Capital | Wholly-owned subsidiary | 40 | 43.88 | 43.26 | 0.74 | 0.37 | 0.33 | | Orient Asset Management | Wholly-owned subsidiary | 3 | 49.15 | 43.01 | 6.67 | 2.38 | 1.99 | | Orient Innovation | Wholly-owned subsidiary | 75 | 91.07 | 88.31 | 3.23 | 2.80 | 2.23 | | Orient Financial Holdings | Wholly-owned subsidiary | 27.54 | 142.05 | 12.59 | 2.30 | 1.13 | 1.02 | - Important associate Huitianfu Fund Management Co., Ltd., in which the company holds a **35.412% equity stake**[135](index=135&type=chunk) - As of the end of the reporting period, Huitianfu Fund's total assets were **RMB 14.682 billion**, and net assets were **RMB 10.823 billion**; in H1 2025, it achieved a net profit of **RMB 0.480 billion**[135](index=135&type=chunk) - The company included certain structured entities in its consolidated scope, totaling **45** as of the end of the reporting period, with a combined net asset amount of **RMB 20.993 billion**[137](index=137&type=chunk) [Other Disclosure Matters](index=66&type=section&id=%E4%BA%94%E3%80%81%E5%85%B6%E4%BB%96%E6%8A%AB%E9%9C%B2%E4%BA%8B%E9%A0%85) Company has established a comprehensive risk management system covering market, credit, liquidity, operational, money laundering, technology, and reputation risks, effectively controlling various risks with no major violations - The company has established a comprehensive risk management system covering organizational, business, and risk dimensions, including market risk, credit risk, liquidity risk, operational risk, money laundering and terrorist financing risk, technology risk, and reputation risk[141](index=141&type=chunk) [Potential Risks Faced](index=66&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E5%8F%AF%E8%83%BD%E9%9D%A2%E5%B0%8D%E7%9A%84%E9%A2%A8%E9%9A%AA) The company's comprehensive risk management system covers seven major risks: market, credit, liquidity, operational, money laundering, technology, and reputation, effectively identifying, assessing, controlling, and responding to them - Market risk: Managed through asset-liability allocation, market risk limit system, dynamic stop-loss mechanisms, sensitivity analysis, scenario analysis, and stress testing[144](index=144&type=chunk) - As of the end of the reporting period, the company's overall Market Risk VaR (95%, 1-day) was **RMB 316 million**[146](index=146&type=chunk) - Credit risk: Established a credit risk management system for financing parties, counterparties, and issuers, implementing limit management and strengthening control through internal ratings, credit granting management, concentration management, and stress testing[147](index=147&type=chunk)[148](index=148&type=chunk) - Liquidity risk: Continuously improved the liquidity risk management system and internal management framework, with dedicated personnel responsible for dynamic monitoring, early warning, analysis, and reporting, ensuring liquidity coverage ratio and net stable funding ratio continuously meet regulatory requirements[150](index=150&type=chunk)[151](index=151&type=chunk] - Operational risk: Continuously improved the operational risk management system, forming an institutional management framework centered on the “Operational Risk Management Measures” and supported by three tool guidelines, establishing an operational risk identification and assessment mechanism[153](index=153&type=chunk) - Money laundering and terrorist financing risk: Deeply implemented the new “Anti-Money Laundering Law,” improved anti-money laundering decision-making and coordination mechanisms, strengthened identification and control of high-risk clients, and established a continuous due diligence framework[155](index=155&type=chunk) - Technology risk: Established an IT governance system with “Information Technology Governance” as the top-level design, clarifying governance objectives, organizational structure, and mechanisms, and continuously strengthening data security, system operations and maintenance, network security, and emergency management[156](index=156&type=chunk)[157](index=157&type=chunk) - Reputation risk: Strengthened public opinion monitoring, introduced AI disambiguation functions, established a six-in-one incident handling mechanism for monitoring, reporting, response, information release, evaluation, and improvement, and incorporated staff reputation into human resource management[159](index=159&type=chunk)[162](index=162&type=chunk) [Explanation of Non-Disclosure According to Standards](index=77&type=section&id=%E5%85%AD%E3%80%81%E5%9B%A0%E4%B8%8D%E9%81%A9%E7%94%A8%E6%BA%96%E5%89%87%E8%A6%8F%E5%AE%9A%E6%88%96%E5%9C%8B%E5%AE%B6%E7%A7%98%E5%AF%86%E3%80%81%E5%95%86%E6%A5%AD%E7%A7%98%E5%AF%86%E7%AD%89%E7%89%B9%E6%AE%8A%E5%8E%9F%E5%9B%A0%EF%BC%8C%E6%9C%AA%E6%8C%89%E6%BA%96%E5%89%87%E6%8A%AB%E9%9C%B2%E7%9A%84%E6%83%85%E6%B3%81%E5%92%8C%E5%8E%9F%E5%9B%A0%E8%AA%AA%E6%98%8E) The company did not disclose details of its proprietary securities investments due to commercial confidentiality, but the overall situation has been disclosed in relevant sections - Details of proprietary securities investments were not disclosed due to commercial confidentiality, but the overall situation has been disclosed in the report[163](index=163&type=chunk) [Section 4 Corporate Governance, Environment and Society](index=78&type=section&id=%E7%AC%AC%E5%9B%9B%E7%AF%80%E2%80%83%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86%E3%80%81%E7%92%B0%E5%A2%83%E5%92%8C%E7%A4%BE%E6%9C%83) This section details the company's corporate governance structure, changes in key personnel, employee policies, training, and efforts in social responsibility and rural revitalization [Changes in Directors, Supervisors, and Senior Management](index=78&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%A3%E4%BA%8B%E3%80%81%E9%AB%98%E7%B4%9A%E7%AE%A1%E7%90%86%E4%BA%BA%E5%93%A1%E8%AE%8A%E5%8B%95%E6%83%85%E6%B3%81) During the reporting period, Mr. Xie Weiqing resigned from his positions as non-executive director and member of the Board's Audit Committee due to work adjustments - Mr. Xie Weiqing resigned from his positions as non-executive director and member of the Board's Audit Committee on **July 18, 2025**[165](index=165&type=chunk) [Directors, Supervisors and Other Information](index=78&type=section&id=%E4%BA%8C%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%A3%E4%BA%8B%E5%8F%8A%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) The company's directors and supervisors strictly adhered to the "Model Code" for securities transactions, with no violations found, and no service contracts with directors or supervisors that would expire or be terminable within one year - All directors and supervisors strictly complied with the “Model Code” for company securities transactions, with no violations found[166](index=166&type=chunk) - Mr. Lu Weiming no longer serves as a director of Orient Financial Holdings (Hong Kong) Limited, and now serves as Chairman of Huitianfu Fund Management Co., Ltd[167](index=167&type=chunk) - Mr. Lu Dayin no longer concurrently serves as the company's Chief Information Officer, and now serves as Chairman of Orient Financial Holdings (Hong Kong) Limited[167](index=167&type=chunk) - Changes occurred in the concurrent positions of Mr. Xie Weiqing, Mr. Ren Zhixiang, Mr. Wu Hong, Ms. Du Xinhong, Mr. Shen Guangjun, and Ms. Ding Yan[171](index=171&type=chunk) - The company has not entered into any service contracts with any director or supervisor that would expire or be terminable by the employer within one year[170](index=170&type=chunk) [Employees and Remuneration Policy](index=80&type=section&id=%EF%BC%88%E5%9B%9B%EF%BC%89%E5%93%A1%E5%B7%A5%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the company had 8,082 employees, implementing a market-oriented, performance-driven remuneration system closely linked to risk management, and providing comprehensive employee benefits - As of June 30, 2025, the company had **8,082 employees** (including brokers)[172](index=172&type=chunk) - The company implements a market-oriented, performance-driven remuneration system, closely integrated with risk management[172](index=172&type=chunk) - Professional ethics, integrity, compliance and risk control effectiveness, social responsibility fulfillment, client service level, and long-term shareholder interests are incorporated into remuneration management[173](index=173&type=chunk) - The company has established various social insurances, housing provident funds, enterprise annuity schemes, and supplementary medical insurance schemes for employees[173](index=173&type=chunk) [Training Programs](index=81&type=section&id=%EF%BC%88%E4%BA%94%EF%BC%89%E5%9F%B9%E8%A8%93%E8%A8%88%E5%8A%83) The company conducts diverse training programs, focusing on political training for cadres, "Orient Spark" internal trainer development, and "Orient Forum" exchange and sharing, to enhance cadres' political literacy and performance capabilities - The company conducts diverse training programs, focusing on political training for cadres, “Orient Spark” internal trainer development, and “Orient Forum” exchange and sharing brands[174](index=174&type=chunk) [Other Corporate Governance Matters](index=81&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86%E5%85%B6%E4%BB%96%E6%83%85%E6%B3%81) The company strictly adheres to laws and regulations of its listing venues, continuously improving corporate governance to form a "three meetings and one layer" governance structure with clear responsibilities, effective checks and balances, and scientific decision-making - The company strictly complies with laws and regulations of its domestic and overseas listing venues, continuously improving corporate governance, forming a governance structure with clear responsibilities, effective checks and balances, and scientific decision-making[175](index=175&type=chunk) - During the reporting period, the “Articles of Association” were revised, and governance systems such as the “Market Value Management System” and “Board of Directors Supervision Work Management Measures” were formulated[176](index=176&type=chunk) - **1 general meeting**, **5 board meetings**, and **2 supervisory committee meetings** were held, along with multiple committee meetings, all conducted legally and effectively[176](index=176&type=chunk) - The company's Board of Directors consists of **15 directors**, including **3 executive directors, 6 non-executive directors, 5 independent non-executive directors, and 1 employee director**[178](index=178&type=chunk) - The Board has established a Strategy and Development Committee, Audit Committee, Compliance and Risk Management Committee, and Remuneration and Nomination Committee, all operating effectively[178](index=178&type=chunk) - The company's Supervisory Committee consists of **7 supervisors**, including **3 employee representative supervisors** and **4 shareholder representative supervisors**, overseeing the company's financial affairs, and the performance of the Board and senior management[179](index=179&type=chunk) - Senior management operates legally and compliantly in accordance with laws, regulations, and Board authorization[180](index=180&type=chunk) - The company highly values investor relations management, adhering to the philosophy of “sincerity, professionalism, and compliance,” and has established multi-dimensional communication channels[181](index=181&type=chunk) - In H1 2025, the company held **2 earnings briefings**, **2 analyst conferences**, participated in **19 broker strategy conferences**, and hosted **11 on-site and online research activities**, covering **279 domestic and international analysts and institutional investors**[182](index=182&type=chunk) - Awarded “Best Practice in Investor Relations Management for Listed Companies” by the China Association for Public Companies[182](index=182&type=chunk) - The company diligently performs information disclosure, strictly adhering to laws and regulations of its domestic and overseas listing venues to disclose company information truthfully, accurately, completely, timely, and fairly[186](index=186&type=chunk) [Profit Distribution or Capital Reserve Conversion Plan](index=88&type=section&id=%E5%9B%9B%E3%80%81%E5%88%A9%E6%BD%A4%E5%88%86%E9%85%8D%E6%88%96%E8%B3%87%E6%9C%AC%E5%85%AC%E7%A9%8D%E9%87%91%E8%BD%89%E5%A2%9E%E9%A0%90%E6%A1%88) The company's board has approved the 2025 interim profit distribution plan, proposing a cash dividend of RMB 1.20 (tax inclusive) per 10 shares to A-share and H-share holders, totaling approximately RMB 1.012 billion, representing 29.23% of the net profit attributable to parent company shareholders for H1 2025 Interim Profit Distribution Plan | Indicator | Amount/Ratio | | :--- | :--- | | Distribution or Conversion | Yes | | Dividend per 10 shares (RMB) (tax inclusive) | 1.20 | | Total proposed cash dividend | RMB 1,012,211,857.32 | | % of H1 2025 net profit attributable to parent company shareholders (consolidated) | 29.23% | - This profit distribution plan does not require shareholder approval, and the company will distribute it within two months from the date of the Board meeting[189](index=189&type=chunk) [Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=89&type=section&id=%E4%BA%94%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E6%AC%8A%E6%BF%80%E5%8B%B5%E8%A8%88%E5%8A%83%E3%80%81%E5%93%A1%E5%B7%A5%E6%8C%81%E8%82%A1%E8%A8%88%E5%8A%83%E6%88%96%E5%85%B6%E4%BB%96%E5%93%A1%E5%B7%A5%E6%BF%80%E5%8B%B5%E6%8E%AA%E6%96%BD%E7%9A%84%E6%83%85%E6%B3%81%E5%8F%8A%E5%85%B6%E5%BD%B1%E9%9F%BF) The company implemented an H-share employee stock ownership plan in 2020, which expired and terminated on July 12, 2025, with no other incentive measures existing during the reporting period - The company implemented an H-share employee stock ownership plan in **2020**, with **3,588 participants** and a total raised capital of **RMB 316.657 million**[190](index=190&type=chunk)[192](index=192&type=chunk) - The plan expired and terminated on **July 12, 2025**, and no longer holds the company's H-shares[193](index=193&type=chunk) - During the reporting period, the company had no other incentive measures[198](index=198&type=chunk) [Consolidating Poverty Alleviation Achievements and Rural Revitalization Efforts](index=91&type=section&id=%E5%85%AD%E3%80%81%E5%B7%A9%E5%9B%BA%E6%8B%93%E5%B1%95%E8%84%B1%E8%B2%A7%E6%94%BB%E5%A0%85%E6%88%90%E6%9E%9C%E3%80%81%E9%84%89%E6%9D%91%E6%8C%AF%E8%88%88%E7%AD%89%E5%B7%A5%E4%BD%9C%E5%85%B7%E9%AB%94%E6%83%85%E6%B3%81) During the reporting period, the company actively responded to national calls, continuously focusing on industrial assistance, public welfare assistance, and consumption assistance, deeply advancing the consolidation of poverty alleviation achievements and rural revitalization efforts - The company and its subsidiaries signed pairing assistance agreements with **50 regions**, continuously contributing to rural revitalization[199](index=199&type=chunk) - During the reporting period, a total of approximately **RMB 2.3459 million** was invested in **21 projects**, including industrial assistance, financial assistance, public welfare assistance, consumption assistance, intellectual assistance, and cultural assistance[199](index=199&type=chunk) [Section 5 Significant Matters](index=92&type=section&id=%E7%AC%AC%E4%BA%94%E7%AF%80%E2%80%83%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A0%85) This section details the company's fulfillment of commitments, major litigation, regulatory actions, related-party transactions, significant contracts, and other important post-reporting period events [Fulfillment of Commitments](index=92&type=section&id=%E4%B8%80%E3%80%81%E6%89%BF%E8%AB%BE%E4%BA%8B%E9%A0%85%E5%B1%A5%E8%A1%8C%E6%83%85%E6%B3%81) The company's actual controller, Shenergy Group, strictly fulfilled its commitments to avoid horizontal competition and regulate related-party transactions during the reporting period, ensuring the company's operational independence and fairness - Shenergy Group has issued a “Commitment Letter to Avoid Horizontal Competition” to the company, pledging not to engage in any business that competes with the company or its subsidiaries[200](index=200&type=chunk) - Shenergy Group committed to minimizing and regulating related-party

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。 Datang Environment Industry Group Co., Ltd.* 大 唐 環 境 產 業 集 團 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 ） （股 份 代 號：1272） 截至2025年6月30日止六個月的中期業績公告 財務及運營摘要 大唐環境產業集團股份有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此宣佈本公司 及其附屬公司（「本集團」或「我們」）截至2025年6月30日止六個月（「報告期」）的未經審計中 期財務業績以及2024年同期的可比較數字。本公司載於本業績公告的截至2025年6月30 日止六個月本集團的財務資料乃根據國際會計準則第34號「 中期財務報告 」以及香港聯合 交易所有限公司（「聯交所」）證券上市規則（「上市規則」）的披露規定而作出。 - 1 - • 截至2025年6月30日止六個月，本集 ...

瑞 昌 國 際 控 股 有 限 公 司（「本 公 司」或「瑞 昌 國 際」）董 事（「董 事」）會（「董 事 會」） 欣 然 宣 佈 本 公 司 及 其 附 屬 公 司（「本 集 團」）截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月（「報 告 期 間」）之 未 經 審 核 簡 明 綜 合 中 期 業 績，連 同 二 零 二 四 年 同 期 的 比 較 數 字，有 關 數 字 已 由 本 公 司 審 核 委 員 會（「審 核 委 員 會」）審 閱 及 授 權 於 二 零 二 五 年 八 月 二 十 九 日 刊 發。 財 務 摘 要 香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 告 的 內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示 概 不 就 因 本 公 告 全 部 或 任 何 部 分 內 容 而 產 生 或 因 倚 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 RUICHANG INTERNATIONAL HOLDINGS LIMITED ...

Summary Profit for the period significantly increased by 72.8% to HKD 13.06 million, despite a slight 0.6% revenue decrease to HKD 60.64 million, with no interim dividend recommended [Financial Highlights](index=1&type=section&id=Summary-Financial%20Highlights) Profit for the period significantly increased by 72.8% to HKD 13.06 million, despite a slight 0.6% revenue decrease to HKD 60.64 million, with no interim dividend recommended Key Financial Data for H1 2025 | Metric | Six Months Ended June 30, 2025 (HKD '000) | Six Months Ended June 30, 2024 (HKD '000) | | :--- | :--- | :--- | | Revenue | 60,640 | 60,979 | | Profit for the period | 13,058 | 7,555 | - Profit for the period increased by **72.8%** compared to the same period last year[2](index=2&type=chunk) - The Directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025[2](index=2&type=chunk) Condensed Consolidated Financial Statements The condensed consolidated financial statements detail the company's profit growth and changes in financial position, including key income and balance sheet metrics [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) Revenue reached HKD 60.64 million, with gross profit at HKD 27.57 million and profit for the period at HKD 13.06 million, resulting in basic EPS of HKD 1.62 cents, reflecting a 72.8% profit increase and 32.6% gross profit growth year-on-year Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Metric | 2025 (HKD '000) | 2024 (HKD '000) | | :--- | :--- | :--- | | Revenue | 60,640 | 60,979 | | Cost of sales | (33,067) | (40,191) | | Gross profit | 27,573 | 20,788 | | Other income | 1,564 | 1,188 | | Other gains and losses | 745 | 766 | | Selling and distribution costs | (2,382) | (2,510) | | Administrative expenses | (9,882) | (8,342) | | Research and development costs | (2,033) | (2,658) | | Profit before tax | 15,585 | 9,232 | | Tax | (2,527) | (1,677) | | Profit for the period | 13,058 | 7,555 | | Total comprehensive income for the period | 14,818 | 6,771 | | Basic earnings per share (HK cents) | 1.62 | 0.94 | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Total assets reached HKD 258.52 million, with net current assets at HKD 123.57 million and net assets at HKD 142.83 million, showing growth from year-end 2024 Condensed Consolidated Statement of Financial Position (As at) | Metric | June 30, 2025 (HKD '000) | December 31, 2024 (HKD '000) | | :--- | :--- | :--- | | Non-current assets | 22,948 | 23,317 | | Current assets | 235,567 | 222,154 | | Current liabilities | 112,000 | 115,633 | | Net current assets | 123,567 | 106,521 | | Net assets | 142,829 | 128,011 | | Total equity | 142,829 | 128,011 | - Inventories increased by **40.1%** from HKD **56.30 million** as of December 31, 2024, to HKD **78.89 million** as of June 30, 2025[4](index=4&type=chunk) - Bank balances and cash decreased by **36.5%** from HKD **59.53 million** as of December 31, 2024, to HKD **37.83 million** as of June 30, 2025[4](index=4&type=chunk) Notes to the Condensed Consolidated Financial Statements These notes provide detailed explanations on the company's general information, accounting policies, revenue, expenses, and financial position items for the interim period [1. General Information](index=4&type=section&id=1.%20General%20Information) Renheng Industrial Holdings, incorporated in the Cayman Islands and listed on HKEX, manufactures and sells tobacco machinery in China, co-controlled by Ms. Liu Li, with financial statements presented in HKD - The Company is an investment holding company, with its subsidiaries primarily engaged in the manufacturing and sale of tobacco machinery products in the People's Republic of China ('China')[5](index=5&type=chunk) - The Company is jointly controlled by LinkBest Capital Group Limited and Open Venture Global Limited, with Ms. Liu Li as the ultimate controlling shareholder[5](index=5&type=chunk) - The condensed consolidated financial statements are presented in HKD, which is different from the Company's functional currency, RMB[5](index=5&type=chunk) [2. Basis of Preparation](index=4&type=section&id=2.%20Basis%20of%20Preparation) The unaudited condensed consolidated financial statements were approved by the Board and Audit Committee, prepared under HKAS 34 and Listing Rules - The condensed consolidated financial statements for the six months ended June 30, 2025, are unaudited but have been approved by the Company's Board of Directors and Audit Committee[6](index=6&type=chunk) - The condensed consolidated financial statements have been prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the HKICPA and the applicable disclosure requirements of the Listing Rules of The Stock Exchange of Hong Kong Limited[6](index=6&type=chunk) [3. Accounting Policies](index=4&type=section&id=3.%20Accounting%20Policies) Prepared on a historical cost basis, accounting policies are consistent with prior annual statements, with no significant impact from new HKFRSs - The condensed consolidated financial statements are prepared on a historical cost basis[7](index=7&type=chunk) - The application of revised HKFRSs (HKAS 21 (Amendment) Lack of Exchangeability) during this interim period had no significant impact on the Group's financial position and performance for current and prior periods, or on the disclosures in these condensed consolidated financial statements[8](index=8&type=chunk) [4. Revenue and Segment Information](index=5&type=section&id=4.%20Revenue%20and%20Segment%20Information) Operating in a single segment of tobacco machinery, the Group generated HKD 60.64 million in revenue, primarily from construction contracts and pneumatic feeding systems, all from China Disaggregation of Revenue from Contracts with Customers and Segment Information | Product Type | Six Months Ended June 30, 2025 (HKD '000) | Six Months Ended June 30, 2024 (HKD '000) | | :--- | :--- | :--- | | Construction contracts | 52,582 | 56,525 | | Sales of pneumatic feeding systems | 8,058 | 3,785 | | Sales of other goods | – | 669 | | **Total** | **60,640** | **60,979** | - The Group's operating activities primarily constitute a single operating segment: the manufacturing and sale of tobacco machinery products[10](index=10&type=chunk) - All of the Group's revenue is derived from China, and the majority of its non-current assets are located in China[10](index=10&type=chunk) [5. Other Income](index=7&type=section&id=5.%20Other%20Income) Total other income increased by 31.6% to HKD 1.56 million, primarily from HKD 1.21 million in subsidies and HKD 0.36 million in bank interest Other Income (For the six months ended June 30) | Income Source | 2025 (HKD '000) | 2024 (HKD '000) | | :--- | :--- | :--- | | Subsidy income | 1,209 | 741 | | Bank interest income | 355 | 447 | | **Total** | **1,564** | **1,188** | - Government grants are recognized as income upon receipt, as they represent immediate unconditional financial assistance with no future related costs and are not related to any assets[13](index=13&type=chunk) [6. Other Gains and Losses](index=7&type=section&id=6.%20Other%20Gains%20and%20Losses) Total other gains and losses slightly decreased to HKD 0.75 million, driven by reduced net gains from scrap sales but offset by fair value gains on financial assets Other Gains and Losses (For the six months ended June 30) | Item | 2025 (HKD '000) | 2024 (HKD '000) | | :--- | :--- | :--- | | Net gain from sales of scrap, components and parts | 614 | 900 | | Fair value change gain on financial assets at FVTPL | 189 | – | | Net exchange loss | (58) | (134) | | **Total** | **745** | **766** | [7. Profit Before Tax](index=7&type=section&id=7.%20Profit%20Before%20Tax) Profit before tax significantly increased to HKD 15.59 million, driven by higher staff costs (HKD 9.47 million) and lower R&D costs (HKD 2.03 million) Components of Profit Before Tax (For the six months ended June 30) | Item | 2025 (HKD '000) | 2024 (HKD '000) | | :--- | :--- | :--- | | Directors' emoluments | 1,676 | 911 | | Total staff costs | 9,465 | 8,456 | | Auditor's remuneration | 574 | 542 | | Research and development costs expensed | 2,033 | 2,658 | | Depreciation of property, plant and equipment | 805 | 1,069 | | Depreciation of right-of-use assets | 201 | 157 | [8. Tax](index=8&type=section&id=8.%20Tax) Tax expense increased to HKD 2.53 million, with China's corporate income tax at 25%, but subsidiaries benefit from a 15% preferential rate as high-tech enterprises Components of Tax Expense (For the six months ended June 30) | Item | 2025 (HKD '000) | 2024 (HKD '000) | | :--- | :--- | :--- | | China corporate income tax – current | 978 | 1,840 | | Under-provision in prior years | (262) | – | | Deferred tax | 1,811 | (163) | | **Total** | **2,527** | **1,677** | - China corporate income tax is determined at a rate of **25%**, but the Chinese subsidiaries, as high-tech enterprises, enjoy a preferential tax rate of **15%**[17](index=17&type=chunk)[18](index=18&type=chunk) [9. Earnings Per Share](index=8&type=section&id=9.%20Earnings%20Per%20Share) Basic earnings per share significantly increased to HKD 1.62 cents, with no diluted EPS presented due to the absence of potential ordinary shares Earnings Per Share Calculation (For the six months ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company (HKD '000) | 13,058 | 7,555 | | Number of ordinary shares | 804,000,000 | 804,000,000 | | Basic earnings per share (HK cents) | 1.62 | 0.94 | - The Group did not present diluted earnings per share for both periods as there were no outstanding potential ordinary shares during either period[19](index=19&type=chunk) [10. Dividends](index=9&type=section&id=10.%20Dividends) The Board decided not to recommend any interim dividend for the six months ended June 30, 2025 - The Company's Directors decided not to pay any dividend for the interim period[20](index=20&type=chunk) [11. Inventories](index=9&type=section&id=11.%20Inventories) Total inventories significantly increased to HKD 78.89 million, with a notable rise in work-in-progress inventories Composition of Inventories (As at) | Item | June 30, 2025 (HKD '000) | December 31, 2024 (HKD '000) | | :--- | :--- | :--- | | Raw materials | 7,643 | 4,245 | | Work-in-progress | 71,249 | 52,051 | | **Total** | **78,892** | **56,296** | [12. Trade and Other Receivables](index=9&type=section&id=12.%20Trade%20and%20Other%20Receivables) Total trade and other receivables increased to HKD 60.45 million, with a notable rise in 0-90 day trade receivables (net of allowance) Trade and Other Receivables (As at) | Item | June 30, 2025 (HKD '000) | December 31, 2024 (HKD '000) | | :--- | :--- | :--- | | Trade receivables (net of allowance) | 40,374 | 35,711 | | Retention receivables (net of allowance) | 10,230 | 8,053 | | Other receivables from third parties (net of allowance) | 2,699 | 3,237 | | Prepayments and deposits | 6,393 | 1,572 | | Advances to staff | 756 | 807 | | **Total** | **60,452** | **49,380** | Aging Analysis of Trade Receivables (Net of allowance for credit losses) | Ageing | June 30, 2025 (HKD '000) | December 31, 2024 (HKD '000) | | :--- | :--- | :--- | | 0 to 90 days | 13,154 | 7,550 | | 91 to 365 days | 13,766 | 21,438 | | 1 to 2 years | 13,454 | 6,723 | | **Total** | **40,374** | **35,711** | - The Group generally grants its trade customers a credit period of three months[22](index=22&type=chunk) [13. Restricted Bank Deposits / Bank Balances and Cash / Time Deposits](index=10&type=section&id=13.%20Restricted%20Bank%20Deposits%20/%20Bank%20Balances%20and%20Cash%20/%20Time%20Deposits) Total restricted bank deposits, bank balances, and time deposits decreased to HKD 80.68 million, primarily used for settling bills and guaranteeing construction contracts Cash and Deposit Situation (As at) | Item | June 30, 2025 (HKD '000) | December 31, 2024 (HKD '000) | | :--- | :--- | :--- | | Restricted bank deposits | 30,348 | 19,848 | | Time deposits | 12,500 | 15,500 | | Bank balances and cash | 37,827 | 59,532 | | **Total** | **80,675** | **94,880** | - Restricted bank deposits bear interest at effective annual rates ranging from **0.65%** to **1.50%**, used for settling bills payable and guaranteeing certain construction contracts[23](index=23&type=chunk) - Time deposits have maturities ranging from over **3 months** to **36 months**, bearing interest at annual rates from **1.30%** to **3.20%**[23](index=23&type=chunk) [14. Trade and Other Payables](index=11&type=section&id=14.%20Trade%20and%20Other%20Payables) Total trade and other payables increased to HKD 46.23 million, driven by significant growth in trade payables and bills payable Trade and Other Payables (As at) | Item | June 30, 2025 (HKD '000) | December 31, 2024 (HKD '000) | | :--- | :--- | :--- | | Trade payables | 22,155 | 12,509 | | Bills payable | 9,814 | 7,521 | | Accrued warranty provision | 5,272 | 5,206 | | Accrued staff welfare expenses | 1,574 | 3,060 | | Other payables | 4,457 | 5,000 | | Other tax payables | 2,956 | 1,210 | | **Total** | **46,228** | **34,506** | Aging Analysis of Trade Payables and Bills Payable | Ageing | June 30, 2025 (HKD '000) | December 31, 2024 (HKD '000) | | :--- | :--- | :--- | | 0 to 90 days | 29,005 | 12,019 | | 91 to 365 days | 1,962 | 7,122 | | 1 to 2 years | 198 | 96 | | Over 2 years | 804 | 793 | | **Total** | **31,969** | **20,030** | - The average credit period for purchases of goods is **90 days**[24](index=24&type=chunk) Management Discussion and Analysis This section provides an overview of the Group's business, financial performance, future outlook, capital structure, and investment activities for the interim period [Business Overview](index=12&type=section&id=Business%20Overview) The Group manufactures and services tobacco machinery in China, holding a national license, with main revenue from flavoring, pneumatic feeding, and pre-pressing machinery - The Group is primarily engaged in the manufacturing and sale of tobacco machinery products in China, also providing maintenance, overhaul, and modification services for these products[25](index=25&type=chunk) - The Group has obtained a Tobacco Monopoly Production Enterprise License from the China National Tobacco Monopoly Administration, making it one of **35** licensed producers in China[25](index=25&type=chunk) - Revenue is primarily generated from three categories of specialized tobacco machinery products: flavoring and additive blending and feeding machinery, pneumatic feeding systems, and tobacco pre-pressing and packing machinery[25](index=25&type=chunk) [Financial Review](index=12&type=section&id=Financial%20Review) Profit surged 72.8% to HKD 13.06 million, driven by a significant gross profit margin increase to 45.5% and 112.9% sales growth in pneumatic feeding systems Financial Performance Overview (For the six months ended June 30) | Metric | 2025 (HKD '000) | 2024 (HKD '000) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Profit | 13,058 | 7,555 | +72.8% | | Gross profit | 27,573 | 20,788 | +32.6% | | Gross profit margin | 45.5% | 34.1% | +11.4 percentage points | - The gross profit margin for construction contracts of flavoring and additive blending and feeding machinery increased from **32.2%** to **45.8%**[27](index=27&type=chunk) - Sales of pneumatic feeding systems increased by approximately **112.9%** to HKD **8.06 million**[26](index=26&type=chunk) - Research and development costs decreased by **23.5%** to HKD **2.03 million**, while administrative expenses increased by **18.5%** to HKD **9.88 million**[29](index=29&type=chunk)[30](index=30&type=chunk) [Business Outlook](index=14&type=section&id=Business%20Outlook) The Group anticipates stable growth in the Chinese tobacco machinery sector, focusing on internal management, digital transformation, and technological innovation to capture new market opportunities and enhance shareholder value - The Chinese tobacco industry holds a pivotal position in economic development, and the tobacco machinery sector is expected to maintain stable growth in the coming years[31](index=31&type=chunk) - The Group will continue to strengthen and implement internal management, enhance internal controls, and promote internal digital management systems, such as deploying paperless design software and upgrading its integrated project management platform[31](index=31&type=chunk) - The Group will seize market opportunities related to specialized products, secure contracts in various machinery industries or new technology fields, and commit to pioneering key technological innovations in the customized automation machinery industry[32](index=32&type=chunk) [Capital Structure, Liquidity and Financial Resources](index=14&type=section&id=Capital%20Structure%2C%20Liquidity%20and%20Financial%20Resources) The Group maintains a stable capital structure with net current assets at HKD 123.57 million and bank balances at HKD 37.83 million, reporting no other borrowings or charges Liquidity and Financial Resources Overview (As at) | Metric | June 30, 2025 (HKD '000) | December 31, 2024 (HKD '000) | | :--- | :--- | :--- | | Net current assets | 123,567 | 106,521 | | Bank balances and cash | 37,827 | 59,532 | - The Group has no other borrowings, mortgages, or charges[33](index=33&type=chunk) [Significant Investments Held](index=15&type=section&id=Significant%20Investments%20Held) Investment activities primarily involved short-term time deposits and the acquisition of property, plant, and equipment - The Group's investment activities primarily include placing and withdrawing short-term time deposits and purchasing property, plant and equipment[34](index=34&type=chunk) [Significant Acquisitions and Disposals](index=15&type=section&id=Significant%20Acquisitions%20and%20Disposals) The Group did not undertake any significant acquisitions or disposals of subsidiaries during the six months ended June 30, 2025 - For the six months ended June 30, 2025, the Group had no significant acquisitions or disposals of subsidiaries[35](index=35&type=chunk) Other Information This section covers directors' and major shareholders' interests, competing interests, securities transactions, corporate governance, and the audit committee's review [Directors' and Chief Executive's Interests in Shares, Underlying Shares and Debentures](index=15&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures) Chairman and CEO Ms. Liu Li held 600,000,000 ordinary shares, representing 74.6% of issued capital, through her wholly-owned entities Directors' Interests in the Company's Ordinary Shares | Name | Capacity/Nature of Interest | Number of Issued Ordinary Shares Held | Approximate Percentage of the Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Ms. Liu Li | Interest in controlled corporations | 600,000,000 | 74.6% | - Ms. Liu Li wholly owns Open Venture Global Limited and LinkBest Capital Group Limited, which hold interests in **240,000,000** shares and **360,000,000** shares of the Company, respectively[36](index=36&type=chunk) [Major Shareholders' and Other Persons' Interests in Shares, Underlying Shares and Debentures](index=16&type=section&id=Major%20Shareholders'%20and%20Other%20Persons'%20Interests%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures) Major shareholders LinkBest Capital Group Limited and Open Venture Global Limited held 44.8% and 29.9% of shares respectively, both wholly owned by Ms. Liu Li Major Shareholders' Interests in the Company's Ordinary Shares | Shareholder Name | Capacity/Nature of Interest | Number of Issued Ordinary Shares Held | Approximate Percentage of the Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | LinkBest | Beneficial owner | 360,000,000 | 44.8% | | Open Venture | Beneficial owner | 240,000,000 | 29.9% | - Both LinkBest and Open Venture are wholly owned by Ms. Liu Li[37](index=37&type=chunk) [Competing Interests](index=16&type=section&id=Competing%20Interests) No Directors or their associates hold any interests in businesses that compete or may compete with the Group - No Directors or their respective associates have any interests in businesses that constitute or may constitute a competition with the Group's business[38](index=38&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=16&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) Neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities during the six months ended June 30, 2025 - 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[39](index=39&type=chunk) [Corporate Governance Code](index=17&type=section&id=Corporate%20Governance%20Code) The Company adopted all Corporate Governance Code provisions, except A.2.1, where Ms. Liu Li concurrently holds the Chairman and Chief Executive roles - The Company has adopted all code provisions set out in the Corporate Governance Code, except for code provision A.2.1 (the roles of Chairman and Chief Executive Officer being performed by the same individual)[40](index=40&type=chunk) - Ms. Liu Li concurrently holds the positions of Chairman and Chief Executive Officer of the Company[40](index=40&type=chunk) [Audit Committee](index=17&type=section&id=Audit%20Committee) The Audit Committee, chaired by Dr. Lam Ka Lai and comprising three independent non-executive directors, reviewed and approved the interim results for compliance and disclosure - The Audit Committee currently comprises three independent non-executive Directors and is chaired by Dr. Lam Ka Lai[41](index=41&type=chunk) - The Audit Committee has reviewed the interim results for the six months ended June 30, 2025, and is of the opinion that these results comply with applicable accounting standards and have made adequate disclosures[41](index=41&type=chunk)

火岩控股有限公司 FIRE ROCK HOLDINGS LIMITED ( 於 開 曼 群 島 註 冊 成 立 的 有 限 公司 ) 股份代號：1909 2025 中期報告 火岩控股有限公司 FIRE ROCK HOLDINGS LIMITED (Incorporated in the Cayman Islands with limited liability) Stock code：1909 2025 INTERIM REPORT 火 岩 控 股 有 限 公 司 FIRE R O CK H O L DIN GS LIMIT E D Interim Report 2025 中 期報告 釋義 公司資料 管理層討論與分析 企業管治及其他資料 簡明綜合損益及其他全面收益表（未經審核） 簡明綜合財務狀況表（未經審核） 簡明綜合權益變動表（未經審核） 簡明綜合現金流量表（未經審核） 未經審核簡明綜合財務報表附註 目 錄 2 5 29 30 釋義 | 「公司章程」 | 本公司於二零一六年一月二十四日有條件採納 | | --- | --- | | | 的章程細則（經不時修訂、補充及以其他方式修 | | | 改） | | 「 ...

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。 China International Capital Corporation Limited 中 國 國 際 金 融 股 份 有 限 公 司 中國，北京 2025年8月29日 於本公告日期，本公司執行董事為陳亮先生；非執行董事為張薇女士及孔令岩先生； 以及獨立非執行董事為吳港平先生、陸正飛先生、彼得 • 諾蘭先生及周禹先生。 目錄 | 釋義 | 002 | | --- | --- | | 重要提示 | 007 | | 公司簡介 | 009 | | 會計數據及財務指標摘要 | 011 | | 管理層討論與分析 | 014 | | 公司治理 | 086 | | 環境與社會責任 | 093 | | 重要事項 | 097 | | 股份變動及股東情況 | 106 | | 債券相關情況 | 113 | | 中期簡明合併財務報表審閱報告 | 133 | | 中期簡明合併財務報表 | 134 | | 備查文件目錄 | ...

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) [Overview of Interim Financial Performance](index=1&type=section&id=Overview%20of%20Interim%20Financial%20Performance) Xinken Intelligent Holdings Limited reported significant declines in revenue, profit, gross margin, and earnings per share for the six months ended June 30, 2025 Financial Highlights for the Six Months Ended June 30 | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 129,832 | 154,984 | -16.2 | | Gross Profit | 17,682 | 31,828 | -44.4 | | Gross Margin (%) | 13.6 | 20.5 | -6.9pp | | Profit for the Period | 2,249 | 12,974 | -82.7 | | Profit Attributable to Owners of the Company | 970 | 8,955 | -89.2 | | Earnings Per Share Attributable to Owners of the Company (RMB cents) | 0.38 | 3.58 | -89.4 | [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) Revenue decreased by **16.2%** to **RMB 129.8 million**, with gross profit falling **44.4%** and profit for the period sharply declining to **RMB 2.2 million**, driven by lower revenue and gross margin Key Data from Condensed Consolidated Statement of Profit or Loss | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 129,832 | 154,984 | -16.2 | | Cost of Sales | (112,150) | (123,156) | -8.9 | | Gross Profit | 17,682 | 31,828 | -44.4 | | Other Income | 3,136 | 3,450 | -9.0 | | Net Other Losses | (1,091) | (1,028) | +6.1 | | Selling and Distribution Expenses | (1,014) | (1,585) | -36.0 | | Administrative and Other Operating Expenses | (15,071) | (17,713) | -14.9 | | Net Impairment Loss on Financial Assets and Contract Assets | (553) | – | N/A | | Finance Costs | (142) | (536) | -73.5 | | Profit Before Tax | 2,947 | 14,416 | -79.5 | | Income Tax Expense | (698) | (1,442) | -51.6 | | Profit for the Period | 2,249 | 12,974 | -82.7 | | Profit Attributable to Owners of the Company | 970 | 8,955 | -89.2 | | Profit Attributable to Non-controlling Interests | 1,279 | 4,019 | -68.1 | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) Total comprehensive income for the period significantly decreased to **RMB 4.4 million**, primarily due to reduced profit and the impact of exchange differences and fair value changes of financial assets Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Profit for the Period | 2,249 | 12,974 | -82.7 | | Exchange differences arising from translation of the Company's financial statements to presentation currency | (695) | 1,492 | -146.6 | | Fair value changes of financial assets measured at fair value through other comprehensive income | 2,968 | (674) | N/A | | Exchange differences on translation of overseas operations | (112) | 1,517 | -107.4 | | Total other comprehensive income for the period | 2,161 | 2,335 | -7.4 | | Total comprehensive income for the period | 4,410 | 15,309 | -71.2 | | Total comprehensive income attributable to owners of the Company | 3,131 | 11,290 | -72.3 | | Total comprehensive income attributable to non-controlling interests | 1,279 | 4,019 | -68.1 | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Net assets increased to **RMB 293.5 million**, driven by a rise in net current assets to **RMB 206.4 million** and an improved current ratio of **5.9**, indicating enhanced liquidity Key Data from Condensed Consolidated Statement of Financial Position | Metric | 2025/06/30 (RMB thousands) | 2024/12/31 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | **Non-current Assets** | | | | | Property, Plant and Equipment | 88,341 | 102,723 | -14.0 | | Intangible Assets | 584 | 889 | -34.3 | | Prepayments, Deposits and Other Receivables | 3,631 | – | N/A | | Deferred Tax Assets | 1,364 | 1,295 | +5.3 | | Financial assets measured at fair value through other comprehensive income | 2,556 | 10,245 | -75.0 | | **Total Non-current Assets** | **96,476** | **115,152** | **-16.3** | | **Current Assets** | | | | | Inventories | 10,686 | 14,416 | -25.9 | | Trade and Bills Receivables and Contract Assets | 102,199 | 104,018 | -1.7 | | Prepayments, Deposits and Other Receivables | 7,622 | 8,900 | -14.3 | | Financial assets measured at amortised cost | 12,130 | 12,317 | -1.5 | | Financial assets measured at fair value through profit or loss | – | 13,423 | -100.0 | | Cash and Cash Equivalents | 115,676 | 73,719 | +56.9 | | **Total Current Assets** | **248,313** | **227,094** | **+9.3** | | **Current Liabilities** | | | | | Trade Payables | 14,101 | 15,106 | -6.7 | | Contract Liabilities | 3,378 | 2,693 | +25.4 | | Other Payables and Accruals | 14,672 | 23,930 | -38.7 | | Bank Borrowings | 3,000 | 3,250 | -7.7 | | Lease Liabilities | 1,965 | 3,404 | -42.3 | | Income Tax Payable | 227 | – | N/A | | Deferred Government Grants | 4,524 | 4,798 | -5.8 | | **Total Current Liabilities** | **41,867** | **53,181** | **-21.3** | | **Net Current Assets** | **206,446** | **173,913** | **+18.7** | | **Non-current Liabilities** | | | | | Lease Liabilities | 2,656 | 3,272 | -18.8 | | Deferred Government Grants | 6,601 | 8,767 | -24.7 | | Deferred Tax Liabilities | 209 | 128 | +63.3 | | **Total Non-current Liabilities** | **9,466** | **12,167** | **-22.2** | | **Net Assets** | **293,456** | **276,898** | **+6.0** | | **Total Equity** | **293,456** | **276,898** | **+6.0** | [Notes to the Condensed Consolidated Interim Financial Information](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Information) [1. General Information](index=6&type=section&id=1.%20General%20Information) Xinken Intelligent Holdings Limited, incorporated in the Cayman Islands and listed on the HKEX, primarily provides electronic manufacturing services and sells PCBA and electronic components - The Company was incorporated in the Cayman Islands on December 7, 2018, and listed on the Main Board of the Hong Kong Stock Exchange on October 18, 2019[10](index=10&type=chunk) - Its principal activities are the provision of electronic manufacturing services and the sale of printed circuit board assemblies (PCBA) and electronic components[11](index=11&type=chunk) - The Company's registered office and principal place of business have changed, with the Group's head office located in Shenzhen, China[10](index=10&type=chunk) [2. Basis of Preparation](index=6&type=section&id=2.%20Basis%20of%20Preparation) Interim financial information is prepared under HKAS 34 and Listing Rules, reviewed by the audit committee and external auditor - The interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and the Listing Rules of the Stock Exchange[12](index=12&type=chunk) - The interim financial information is unaudited but has been reviewed by the Audit Committee and the external auditor[12](index=12&type=chunk) - Except for financial assets measured at fair value, the interim financial information is prepared on a historical cost basis and presented in RMB[14](index=14&type=chunk) [3. Summary of Significant Accounting Policies](index=7&type=section&id=3.%20Summary%20of%20Significant%20Accounting%20Policies) Accounting policies align with the 2024 annual report, with new HKFRS adoptions like HKAS 21 and HKFRS 1 (Amendments) having no significant financial impact - Accounting policies are consistent with the 2024 annual report, but new/revised HKFRSs have been adopted for the first time[15](index=15&type=chunk) - Adoptions include HKAS 21 and HKFRS 1 (Amendments) "Lack of Exchangeability"[16](index=16&type=chunk) - The newly adopted standards have no significant impact on the Group's financial position and performance[16](index=16&type=chunk) [4. Revenue and Segment Information](index=8&type=section&id=4.%20Revenue%20and%20Segment%20Information) The Group operates a single reportable segment, electronic manufacturing services and PCBA sales, with revenue of **RMB 129.8 million** solely from China, indicating market concentration - The Group has only one reportable operating segment: the provision of electronic manufacturing services and the sale of PCBA and electronic components[19](index=19&type=chunk) Revenue by Geographical Location | Region | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | China | 129,832 | 154,875 | -16.2 | | United States | – | 109 | -100.0 | | **Total** | **129,832** | **154,984** | **-16.2** | Revenue by Revenue Recognition Method from Customer Contracts | Recognition Method | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Provision of electronic manufacturing services (recognised over time) | 72,510 | 154,984 | | Sale of PCBA and electronic components (recognised at a point in time) | 57,322 | – | | **Total** | **129,832** | **154,984** | [5. Other Income](index=9&type=section&id=5.%20Other%20Income) Other income slightly decreased to **RMB 3.1 million**, primarily comprising government grants for asset purchases and high-tech VAT deductions, and bank interest income Composition of Other Income | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Bank interest income | 255 | 201 | +26.9 | | Government grants | 2,862 | 3,108 | -7.9 | | Others | 19 | 141 | -86.5 | | **Total** | **3,136** | **3,450** | **-9.0** | - Government grants primarily include subsidies for the purchase of qualifying property, plant and equipment, and additional VAT deductions for high-tech enterprises[24](index=24&type=chunk) [6. Net Other Losses](index=9&type=section&id=6.%20Net%20Other%20Losses) Net other losses increased to **RMB 1.1 million**, mainly from disposal losses of property, plant and equipment and exchange losses, partially offset by interest income and fair value changes Composition of Net Other Losses | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest income from unlisted corporate bonds | 510 | 607 | | Interest income from amount due from an independent third party | 228 | 226 | | Dividend income from equity investments measured at fair value through other comprehensive income | 44 | – | | Fair value changes of financial assets measured at fair value through profit or loss | 228 | – | | Loss on disposal of property, plant and equipment, net | (1,921) | (584) | | Write-off of property, plant and equipment | (23) | – | | Net exchange losses | (125) | (1,275) | | Others | (32) | (2) | | **Total** | **(1,091)** | **(1,028)** | [7. Profit Before Tax](index=10&type=section&id=7.%20Profit%20Before%20Tax) Profit before tax significantly decreased to **RMB 2.9 million**, primarily due to changes in finance costs, staff costs, depreciation, and raw material costs Key Deductions from Profit Before Tax | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Finance costs | 142 | 536 | -73.5 | | Staff costs (including directors' emoluments) | 23,621 | 32,284 | -26.8 | | Human resources service expenses | 2,958 | 5,010 | -41.0 | | Cost of raw materials and consumables used | 62,968 | 56,007 | +12.4 | | Subcontracting fees | 10,390 | 10,459 | -0.7 | | Expenses recognised under short-term leases | 7,114 | 5,976 | +19.0 | | Utilities expenses | 507 | 3,628 | -86.0 | | Depreciation | 12,697 | 20,871 | -39.2 | | Amortisation | 305 | 246 | +24.0 | | Auditor's remuneration | 249 | 409 | -39.1 | | Professional fees | 2,903 | 3,315 | -12.5 | | Net provision for write-down of inventories | 1,303 | 99 | +1216.2 | | Impairment loss on financial assets and contract assets | 553 | – | N/A | - Staff costs (including directors' emoluments) decreased from **RMB 32.3 million** to **RMB 23.6 million**, primarily due to reductions in salaries, discretionary bonuses, allowances, and others[26](index=26&type=chunk) - Depreciation expenses decreased from **RMB 20.9 million** to **RMB 12.7 million**, while amortisation expenses increased from **RMB 0.2 million** to **RMB 0.3 million**[26](index=26&type=chunk)[28](index=28&type=chunk) [8. Income Tax Expense](index=12&type=section&id=8.%20Income%20Tax%20Expense) Income tax expense significantly decreased to **RMB 0.7 million** due to lower profit, with Chinese high-tech entities benefiting from a **15%** preferential tax rate Composition of Income Tax Expense | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current income tax - PRC Enterprise Income Tax | 686 | 1,557 | | Deferred tax - movement in temporary differences | 12 | (115) | | **Total income tax expense** | **698** | **1,442** | - The decrease in income tax expense was mainly due to the reduction in the Group's profit[64](index=64&type=chunk) - Shenzhen Xinken Intelligent and Chongqing Xinken Technology, as high-tech enterprises, enjoy a preferential tax rate of **15%**[32](index=32&type=chunk) [9. Earnings Per Share Attributable to Owners of the Company](index=13&type=section&id=9.%20Earnings%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Company) Basic and diluted earnings per share attributable to owners of the Company significantly decreased to **RMB 0.38 cents**, driven by a sharp decline in profit attributable to owners Earnings Per Share Calculation Data | Metric | 2025 (RMB thousands/thousand shares/RMB cents) | 2024 (RMB thousands/thousand shares/RMB cents) | | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company for the purpose of calculating basic and diluted earnings per share | 970 | 8,955 | | Weighted average number of ordinary shares for the purpose of calculating basic and diluted earnings per share (thousand shares) | 252,210 | 250,000 | | Basic and diluted earnings per share (RMB cents) | 0.38 | 3.58 | - As there were no potential dilutive ordinary shares in both the current and prior periods, diluted earnings per share are the same as basic earnings per share[35](index=35&type=chunk) [10. Dividends](index=13&type=section&id=10.%20Dividends) The Board does not recommend any dividend payments for the six months ended June 30, 2025 and 2024 - The Board does not recommend the payment of any dividends for the six months ended June 30, 2025 and 2024[36](index=36&type=chunk) [11. Trade and Bills Receivables and Contract Assets](index=14&type=section&id=11.%20Trade%20and%20Bills%20Receivables%20and%20Contract%20Assets) Net trade and bills receivables and contract assets slightly decreased to **RMB 102.2 million**, with contract assets representing unbilled services and trade receivables having a 30-120 day credit period Net Trade and Bills Receivables and Contract Assets | Item | 2025/06/30 (RMB thousands) | 2024/12/31 (RMB thousands) | | :--- | :--- | :--- | | Net contract assets | 13,524 | 19,364 | | Net trade receivables | 57,009 | 61,054 | | Bills receivables | 31,666 | 23,600 | | **Total** | **102,199** | **104,018** | - Contract assets refer to completed but unbilled electronic manufacturing services, which typically take one to four months to be reclassified to trade receivables[37](index=37&type=chunk) Ageing Analysis of Trade Receivables (Net of Loss Allowance) | Ageing | 2025/06/30 (RMB thousands) | 2024/12/31 (RMB thousands) | | :--- | :--- | :--- | | Less than 1 month | 37,756 | 33,459 | | 1 to 2 months | 16,280 | 22,580 | | 2 to 3 months | 2,133 | 3,780 | | 3 to 4 months | 185 | 663 | | Over 4 months | 655 | 572 | | **Total** | **57,009** | **61,054** | [12. Prepayments, Deposits and Other Receivables](index=15&type=section&id=12.%20Prepayments,%20Deposits%20and%20Other%20Receivables) Net current prepayments, deposits, and other receivables totaled **RMB 7.6 million**, with a **RMB 4.6 million** independent third-party receivable at **10%** interest, and a fully impaired receivable from Wan Hai Jin Yuan Composition of Prepayments, Deposits and Other Receivables | Item | 2025/06/30 (RMB thousands) | 2024/12/31 (RMB thousands) | | :--- | :--- | :--- | | **Current portion** | | | | Prepayments to suppliers | 873 | 1,544 | | Prepayments for consulting services | 365 | 926 | | Lease and other deposits | 676 | 1,413 | | Interest receivable from unlisted corporate bonds | 814 | 269 | | Interest receivable from amount due from an independent third party | 763 | 545 | | Other receivables | 148 | 150 | | Amount due from an independent third party | 4,560 | 4,630 | | Amount due from Wan Hai Jin Yuan Enterprise Management Co., Ltd. | 7,032 | 7,032 | | Less: Loss allowance | (7,609) | (7,609) | | **Net current portion** | **7,622** | **8,900** | | **Non-current portion** | | | | Prepayments for acquisition of property, plant and equipment | 3,631 | – | | **Total** | **11,253** | **8,900** | - The principal amount due from an independent third party is **HKD 5,000,000** (approximately **RMB 4.56 million**), unsecured, bearing interest at **10%** per annum, and repayable by October 27, 2025[40](index=40&type=chunk) - The amount due from Wan Hai Jin Yuan is unsecured, interest-free, and repayable on demand, with a full loss allowance of **RMB 7.03 million** provided[41](index=41&type=chunk) [13. Trade Payables](index=16&type=section&id=13.%20Trade%20Payables) Total trade payables decreased to **RMB 14.1 million**, unsecured and non-interest bearing, with normal credit terms of 30 to 90 days - Trade payables are unsecured, non-interest bearing, with normal credit terms ranging from 30 to 90 days[43](index=43&type=chunk) Ageing Analysis of Trade Payables | Ageing | 2025/06/30 (RMB thousands) | 2024/12/31 (RMB thousands) | | :--- | :--- | :--- | | Within 1 month | 8,897 | 11,046 | | 1 to 2 months | 4,226 | 2,823 | | 2 to 3 months | 938 | 1,077 | | Over 3 months | 40 | 160 | | **Total** | **14,101** | **15,106** | [14. Contract Liabilities, Other Payables and Accruals](index=16&type=section&id=14.%20Contract%20Liabilities,%20Other%20Payables%20and%20Accruals) Total contract liabilities, other payables, and accruals significantly decreased to **RMB 18.1 million**, mainly due to a substantial reduction in staff salaries and human resources service expenses Composition of Contract Liabilities, Other Payables and Accruals | Item | 2025/06/30 (RMB thousands) | 2024/12/31 (RMB thousands) | | :--- | :--- | :--- | | Contract liabilities | 3,378 | 2,693 | | Payables related to operating expenses | 2,090 | 3,433 | | Staff salaries and human resources service expenses payable | 5,971 | 12,621 | | Value-added tax and other taxes payable | 5,323 | 5,497 | | Other payables | 284 | 1,066 | | Accruals | 1,004 | 1,313 | | **Total** | **18,050** | **26,623** | - Staff salaries and human resources service expenses payable significantly decreased from **RMB 12.6 million** to **RMB 6.0 million**[44](index=44&type=chunk) [Business Review and Prospects](index=17&type=section&id=Business%20Review%20and%20Prospects) [Business Review](index=17&type=section&id=Business%20Review) As an EMS provider, the Group faced significant revenue decline of **16.2%** to **RMB 129.8 million** and net profit reduction to **RMB 2.2 million** due to China's economic challenges and customer contract terminations - The Group is an Electronic Manufacturing Services (EMS) provider, offering a full range of PCBA assembly and production services, including R&D, procurement, assembly, quality control, testing, logistics, and after-sales services[45](index=45&type=chunk) - During the interim period, the Chinese economy faced significant challenges, including US tariff policies, US-China trade negotiation uncertainties, real estate adjustments, and insufficient domestic demand, leading to intensified corporate competition[46](index=46&type=chunk) - Due to the termination of cooperation with certain customers, revenue decreased by **16.2%** year-on-year to **RMB 129.8 million**, and net profit fell from **RMB 13.0 million** to **RMB 2.2 million**[46](index=46&type=chunk) [Prospects](index=17&type=section&id=Prospects) The Group will adopt a cautious approach to expenditure and expansion, diversify customers and products, explore new revenue streams, and invest in internal capabilities for long-term sustainable development amidst economic challenges - The Group will maintain a cautious approach to expenditure and expansion to mitigate financial risks[47](index=47&type=chunk) - Actively diversify or expand customers and products, explore new revenue streams, and mitigate business risks[47](index=47&type=chunk) - Continuously invest in developing internal capabilities, keep abreast of the latest technological developments in the industry, seek more business opportunities, and explore other business segments and new opportunities[47](index=47&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=Management%20Discussion%20and%20Analysis) [Financial Review](index=18&type=section&id=Financial%20Review) This section reviews the company's interim financial performance, highlighting significant declines in overall revenue and profit due to market downturns and customer terminations, despite growth in automotive-related device revenue [Revenue by Customer Geographical Location](index=18&type=section&id=Revenue%20by%20Customer%20Geographical%20Location) Revenue is highly concentrated in China, totaling **RMB 129.8 million**, with no revenue from the United States during the interim period Revenue by Customer Geographical Location | Region | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | China | 129,832 | 154,875 | -16.2 | | United States | – | 109 | -100.0 | | **Total** | **129,832** | **154,984** | **-16.2** | [Revenue by Product Category](index=18&type=section&id=Revenue%20by%20Product%20Category) Telecommunication and IoT product revenues significantly declined by **26.3%** and **74.6%** respectively, while automotive-related device revenue grew **16.7%** and other revenue surged **668.1%** Revenue and Proportion by Product Category | Product Category | 2025 Revenue (RMB thousands) | 2024 Revenue (RMB thousands) | Change (%) | 2025 Proportion (%) | 2024 Proportion (%) | Change in Proportion (pp) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Telecommunication devices | 63,644 | 86,305 | (26.3) | 49.0 | 55.7 | (6.7) | | IoT products | 8,302 | 32,723 | (74.6) | 6.4 | 21.1 | (14.7) | | Automotive-related devices | 39,114 | 33,512 | 16.7 | 30.1 | 21.6 | 8.5 | | Others | 18,772 | 2,444 | 668.1 | 14.5 | 1.6 | 12.9 | | **Total** | **129,832** | **154,984** | **(16.2)** | **100.0** | **100.0** | – | - Revenue from telecommunication devices decreased by **26.3%**, primarily due to the termination of cooperation with certain customers over favorable pricing agreements[50](index=50&type=chunk) - Revenue from IoT products decreased by **74.6%**, mainly due to a sluggish consumer market and failure to reach favorable pricing agreements with customers[50](index=50&type=chunk) - Revenue from automotive-related devices increased by **16.7%**, primarily due to winning more customer orders through technology and quality[50](index=50&type=chunk) - Other revenue significantly increased by **668.1%**, mainly due to increased sales of IC materials during the interim period[51](index=51&type=chunk) [Revenue from Contracts with Customers within the Scope of HKFRS 15](index=19&type=section&id=Revenue%20from%20Contracts%20with%20Customers%20within%20the%20Scope%20of%20HKFRS%2015) Revenue recognition methods changed under HKFRS 15, with 2025 seeing a shift to point-in-time recognition for PCBA sales, reflecting revised customer contract terms to manage inventory and cash flow Revenue by HKFRS 15 Classification | Revenue Category | Recognition Basis | 2025 (RMB thousands) | 2025 Proportion (%) | 2024 (RMB thousands) | 2024 Proportion (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Provision of electronic manufacturing services | Recognised over time | 72,510 | 55.8 | 154,984 | 100.0 | | Sale of PCBA and electronic components | Recognised at a point in time | 57,322 | 44.2 | – | – | | **Total** | | **129,832** | **100.0** | **154,984** | **100.0** | - In 2024, some customers negotiated changes to contract terms to reduce inventory and alleviate cash flow pressure, leading to a change in revenue recognition methods[53](index=53&type=chunk) - Under the revised business terms, revenue from these customers is recognized upon delivery (i.e., when the customer obtains and receives the goods)[53](index=53&type=chunk) [Gross Profit and Gross Margin](index=20&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Gross profit significantly decreased by **44.4%** to **RMB 17.7 million**, with overall gross margin falling to **13.6%**, primarily due to reduced revenue and unavoidable fixed costs impacting all product categories - Gross profit decreased by **44.4%** to **RMB 17.7 million**, with the overall gross margin falling from **20.5%** to **13.6%**[55](index=55&type=chunk) Gross Profit and Gross Margin by Product Category | Product Category | 2025 Gross Profit (RMB thousands) | 2024 Gross Profit (RMB thousands) | Change (%) | 2025 Gross Margin (%) | 2024 Gross Margin (%) | Change (pp) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Telecommunication devices | 10,276 | 19,692 | (47.8) | 16.1 | 22.8 | (6.7) | | IoT products | 547 | 5,264 | (89.6) | 6.6 | 16.1 | (9.5) | | Automotive-related devices | 5,741 | 6,590 | (12.9) | 14.7 | 19.7 | (5.0) | | Others | 1,118 | 282 | 296.5 | 6.0 | 11.5 | (5.5) | | **Total** | **17,682** | **31,828** | **(44.4)** | **13.6** | **20.5** | **(6.9)** | - Gross profit from IoT product PCBA decreased by **89.6%**, with gross margin falling to **6.6%**, mainly due to reduced revenue and unavoidable fixed costs[58](index=58&type=chunk) [Other Income](index=21&type=section&id=Other%20Income) Other income for the interim period was **RMB 3.1 million**, slightly lower than last year, primarily from government grants and bank interest - Other income for the interim period was approximately **RMB 3.1 million**, mainly comprising government grants and bank interest income[59](index=59&type=chunk) [Net Other Losses](index=21&type=section&id=Net%20Other%20Losses) Net other losses were **RMB 1.1 million**, primarily from asset disposal losses and exchange differences, partially offset by unlisted corporate bond interest income - Net other losses for the interim period were approximately **RMB 1.1 million**, mainly including interest income from unlisted corporate bonds and loans, exchange differences, and losses on disposal of property, plant and equipment[60](index=60&type=chunk) [Selling and Distribution Expenses](index=21&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses decreased to **RMB 1.0 million**, representing **0.8%** of revenue, primarily due to reduced overall revenue - Selling and distribution expenses were approximately **RMB 1.0 million**, a year-on-year decrease of **36.0%**[5](index=5&type=chunk)[61](index=61&type=chunk) - The proportion of selling and distribution expenses to revenue decreased from **1%** in the same period of 2024 to **0.8%** in the interim period, mainly due to the Group's reduced revenue[61](index=61&type=chunk) [Administrative Expenses](index=21&type=section&id=Administrative%20Expenses) Administrative expenses decreased to **RMB 15.1 million**, primarily due to a reduction in staff costs - Administrative expenses were approximately **RMB 15.1 million**, a year-on-year decrease of **14.9%**[5](index=5&type=chunk)[62](index=62&type=chunk) - The decrease in administrative expenses was mainly attributable to reduced staff costs[62](index=62&type=chunk) [Finance Costs](index=22&type=section&id=Finance%20Costs) Finance costs significantly decreased to **RMB 0.1 million**, consistent with reduced loan balances and lease liabilities - Finance costs were approximately **RMB 0.1 million**, a year-on-year decrease of **73.5%**[5](index=5&type=chunk)[63](index=63&type=chunk) - The decrease in finance costs is consistent with the reduction in loan balances and lease liabilities[63](index=63&type=chunk) [Income Tax Expense](index=22&type=section&id=Income%20Tax%20Expense) Income tax expense decreased to **RMB 0.7 million**, primarily due to a reduction in the Group's profit - Income tax expense was approximately **RMB 0.7 million**, a year-on-year decrease of **51.6%**[5](index=5&type=chunk)[64](index=64&type=chunk) - The decrease in income tax expense was mainly due to the reduction in the Group's profit[64](index=64&type=chunk) [Profit for the Period](index=22&type=section&id=Profit%20for%20the%20Period) Net profit for the interim period significantly decreased to **RMB 2.2 million**, primarily influenced by various financial factors - Net profit for the interim period was approximately **RMB 2.2 million**, a year-on-year decrease of **82.7%**[5](index=5&type=chunk)[65](index=65&type=chunk) [Profit Attributable to Non-controlling Interests](index=22&type=section&id=Profit%20Attributable%20to%20Non-controlling%20Interests) Profit attributable to non-controlling interests decreased to **RMB 1.3 million**, primarily from the Chongqing factory's profit - Profit attributable to non-controlling interests was approximately **RMB 1.3 million**, a year-on-year decrease of **68.1%**[5](index=5&type=chunk)[66](index=66&type=chunk) - The profit for the interim period primarily originated from the Chongqing factory's profit[66](index=66&type=chunk) [Liquidity and Capital Resources](index=22&type=section&id=Liquidity%20and%20Capital%20Resources) This section analyzes improved liquidity, a low gearing ratio, changes in capital structure due to new share placement, insignificant foreign exchange risk, and capital expenditure for Shenzhen factory equipment, with no interim dividend recommended [Net Current Assets](index=22&type=section&id=Net%20Current%20Assets) Net current assets increased to **RMB 206.4 million**, and the current ratio improved to **5.9**, primarily due to proceeds from the share placement - Net current assets were approximately **RMB 206.4 million**, an increase of **18.7%** from December 31, 2024[8](index=8&type=chunk)[67](index=67&type=chunk) - The current ratio increased from approximately **4.3** as of December 31, 2024, to **5.9** as of June 30, 2025, mainly due to proceeds from the placement[67](index=67&type=chunk) [Borrowings and Charges on Assets](index=22&type=section&id=Borrowings%20and%20Charges%20on%20Assets) Bank borrowings slightly decreased to **RMB 3.0 million**, secured by property, plant and equipment with a carrying amount of **RMB 8.1 million** - Bank borrowings were approximately **RMB 3.0 million**, a decrease of **7.7%** from December 31, 2024[8](index=8&type=chunk)[68](index=68&type=chunk) - The borrowings are secured by property, plant and equipment with a carrying amount of approximately **RMB 8.1 million**[68](index=68&type=chunk) [Gearing Ratio](index=23&type=section&id=Gearing%20Ratio) The gearing ratio decreased to **2.6%**, maintaining a low level due to reduced borrowings and lease liabilities - The gearing ratio decreased from approximately **3.6%** as of December 31, 2024, to approximately **2.6%** as of June 30, 2025[69](index=69&type=chunk) - The gearing ratio remained at a low level due to low bank and other borrowings and lease liabilities[69](index=69&type=chunk) [Capital Structure](index=23&type=section&id=Capital%20Structure) The Group's capital structure remained unchanged except for a share placement, resulting in **300,000,000** issued ordinary shares of **HKD 0.01** each as of June 30, 2025 - Except for the placement of new shares, there were no changes to the Group's capital structure during the interim period[70](index=70&type=chunk) - Following the completion of the placement, as of June 30, 2025, the number of issued shares of the Company was **300,000,000** ordinary shares of **HKD 0.01** each[70](index=70&type=chunk) [Foreign Exchange Risk and Currency Risk](index=23&type=section&id=Foreign%20Exchange%20Risk%20and%20Currency%20Risk) The Group's assets, liabilities, and transactions are primarily denominated in RMB and HKD, with no significant foreign exchange risk identified by management - The Group's assets, liabilities, and transactions are primarily denominated in RMB and HKD[71](index=71&type=chunk) - Management believes there was no significant foreign exchange risk as of June 30, 2025[71](index=71&type=chunk) [Capital Expenditure](index=23&type=section&id=Capital%20Expenditure) Capital expenditure significantly decreased to **RMB 4.4 million**, primarily for equipment additions at the Shenzhen factory - Capital expenditure for the interim period was approximately **RMB 4.4 million**, a year-on-year decrease of **65.9%**[72](index=72&type=chunk) - Capital expenditure was primarily related to equipment additions at the Shenzhen factory[72](index=72&type=chunk) [Interim Dividends](index=23&type=section&id=Interim%20Dividends) The Board does not recommend an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[73](index=73&type=chunk) [Employees, Remuneration Policy and Training](index=23&type=section&id=Employees,%20Remuneration%20Policy%20and%20Training) The Group had **367** employees with total remuneration of **RMB 23.6 million**, a decrease from last year, with remuneration based on performance and regular training provided - As of June 30, 2025, the Group had **367** employees, with total remuneration of approximately **RMB 23.6 million**, a year-on-year decrease of **26.9%**[75](index=75&type=chunk) - The remuneration package includes basic salaries, allowances, bonuses, and contributions to mandatory provident funds or state-managed retirement benefit schemes[74](index=74&type=chunk) - The Group regularly provides comprehensive training and development opportunities for its employees[74](index=74&type=chunk) [Pension Schemes](index=24&type=section&id=Pension%20Schemes) Chinese subsidiary employees participate in state-operated defined contribution pension schemes, with Group contributions based on basic salary costs and immediately vested - Employees of the Group's subsidiaries established in China are required to participate in state-operated retirement benefit schemes (defined contribution plans) run by the Chinese government[76](index=76&type=chunk) - The Group makes contributions to the defined contribution plans as a certain percentage of basic salary costs, and these contributions are fully and immediately vested in the employees[76](index=76&type=chunk) [Capital Commitments](index=24&type=section&id=Capital%20Commitments) Capital commitments increased to **RMB 1.0 million**, primarily for acquiring machinery and equipment to enhance production efficiency - Capital commitments were approximately **RMB 1.0 million**, an increase of **150%** from December 31, 2024[77](index=77&type=chunk) - Capital commitments primarily relate to the acquisition of machinery and equipment to enhance production efficiency[77](index=77&type=chunk) [Significant Acquisitions, Disposals of Subsidiaries, Associates and Joint Ventures and Material Investments](index=24&type=section&id=Significant%20Acquisitions,%20Disposals%20of%20Subsidiaries,%20Associates%20and%20Joint%20Ventures%20and%20Material%20Investments) The Group made no significant acquisitions, disposals of subsidiaries, associates, joint ventures, or material investments during the interim period, other than those disclosed - During the interim period, the Group did not undertake any significant acquisitions, disposals of subsidiaries, associates and joint ventures, or material investments[78](index=78&type=chunk) [Contingent Liabilities](index=24&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no contingent liabilities - As of June 30, 2025, the Group had no contingent liabilities[79](index=79&type=chunk) [Use of Proceeds from Placing of New Shares under General Mandate](index=25&type=section&id=Use%20of%20Proceeds%20from%20Placing%20of%20New%20Shares%20under%20General%20Mandate) The Company completed a **HKD 13.1 million** share placement in June 2025, with proceeds allocated to new machinery, bank loan repayment, and general working capital, expected to be fully utilized by year-end - On June 13, 2025, the Company entered into a placing agreement with the placing agent to place up to **50,000,000** new shares at a placing price of **HKD 0.27** per share[80](index=80&type=chunk) - The placing was completed on June 23, 2025, with net proceeds of approximately **HKD 13.1 million**[80](index=80&type=chunk) Use of Proceeds from Placing | Intended Use | Net Proceeds (HKD millions) | Utilized (HKD millions) | Unutilized (HKD millions) | Expected Timeline for Full Utilization | | :--- | :--- | :--- | :--- | :--- | | Acquisition of new machinery for PCBA assembly and production at Shenzhen production plant | 4.4 | 4.4 | – | – | | Repayment of bank borrowings | 3.3 | – | 3.3 | By end of 2025 | | General working capital | 5.4 | – | 5.4 | By end of 2025 | | **Total** | **13.1** | **4.4** | **8.7** | | [Events After Reporting Period](index=26&type=section&id=Events%20After%20Reporting%20Period) The Board announced on August 1 that shareholding concentration no longer exists as of June 30, 2025, with no other significant events reported post-period - The Board announced on August 1 that, following analysis by an independent service provider, as of June 30, 2025, the Company's shareholding was not concentrated in the hands of a few shareholders[82](index=82&type=chunk) - The shareholding concentration situation described in the announcement dated March 18, 2020, no longer existed as of June 30, 2025[82](index=82&type=chunk) [Corporate Governance Practices](index=26&type=section&id=Corporate%20Governance%20Practices) The Company adheres to the Corporate Governance Code, though the Chairman and CEO roles are combined, with the Board ensuring sufficient safeguards for power balance - The Company has adopted and complied with the Corporate Governance Code set out in Appendix C1 of the Listing Rules[83](index=83&type=chunk) - Mr. Li Hao holds both the positions of Chairman of the Board and Chief Executive Officer, which deviates from Code Provision C.2.1 of the Corporate Governance Code[83](index=83&type=chunk) - The Board believes that, considering the nature of the business, Mr. Li Hao's experience, and the presence of independent non-executive directors, sufficient safeguards are in place to ensure a balance of power[83](index=83&type=chunk) [Share Option Scheme](index=27&type=section&id=Share%20Option%20Scheme) The Share Option Scheme, adopted in 2019 to incentivize contributors, has a ten-year validity with **5 years** remaining, and no options were granted during the interim period - The Share Option Scheme was conditionally adopted on September 20, 2019, to recognize and incentivize eligible participants who contribute to the Group[84](index=84&type=chunk) - Under the terms of the scheme, the maximum number of shares that may be granted shall not exceed **10%** of the issued shares on the Listing Date (i.e., **25,000,000** shares)[85](index=85&type=chunk) - The Share Option Scheme has a validity period of ten years, with approximately **5 years** remaining. No share options were granted during the interim period[86](index=86&type=chunk)[87](index=87&type=chunk) [Connected Transactions](index=27&type=section&id=Connected%20Transactions) The Company did not engage in any connected or continuing connected transactions requiring reporting, announcement, or independent shareholder approval under Listing Rule Chapter 14A - During the interim period, the Company did not enter into any connected transactions or continuing connected transactions subject to reporting, announcement, or independent shareholders' approval requirements under the Listing Rules[88](index=88&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=27&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20Listed%20Securities) Neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities, and no treasury shares were held as of June 30, 2025 - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the interim period[89](index=89&type=chunk) - As of June 30, 2025, the Company held no treasury shares[90](index=90&type=chunk) [Issue of Equity Securities](index=28&type=section&id=Issue%20of%20Equity%20Securities) The Company completed a placing in June 2025, issuing **50,000,000** new shares at **HKD 0.27** each, representing approximately **20.00%** of its issued share capital - On June 13, 2025, the Company entered into a placing agreement with the placing agent to place up to **50,000,000** new shares at a placing price of **HKD 0.27** per share[91](index=91&type=chunk) - The placing was completed on June 23, 2025, and **50,000,000** new shares were issued at the placing price[91](index=91&type=chunk) - The maximum number of placing shares represented approximately **20.00%** of the Company's entire issued share capital as of June 13, 2025[91](index=91&type=chunk) [Auditor](index=28&type=section&id=Auditor) PKF Hong Kong Limited, the Company's auditor, reviewed the Group's unaudited condensed consolidated interim financial information under HKSRE 2410 - The Company's auditor, PKF Hong Kong Limited, has reviewed the Group's interim financial information[92](index=92&type=chunk) - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410 issued by the Hong Kong Institute of Certified Public Accountants[92](index=92&type=chunk) [Audit Committee](index=28&type=section&id=Audit%20Committee) The Audit Committee, established in 2019 with three independent non-executive directors, oversees financial reporting and internal controls, and has reviewed the Group's interim results - The Audit Committee was established on September 20, 2019, with terms of reference in compliance with the Corporate Governance Code set out in Appendix C1 of the Listing Rules[93](index=93&type=chunk) - The Audit Committee comprises three independent non-executive directors: Mr. Zhou Jieting (Chairman), Mr. Huang Jianfei, and Ms. Mu Lingxia[93](index=93&type=chunk) - The Audit Committee has reviewed the Group's interim results for the six months ended June 30, 2025[94](index=94&type=chunk) [Model Code for Securities Transactions by Directors of Listed Issuers](index=28&type=section&id=Model%20Code%20for%20Securities%20Transactions%20by%20Directors%20of%20Listed%20Issuers) The Company adopted the Model Code for directors' securities transactions, with all directors confirming compliance during the interim period - The Company has adopted the Model Code set out in Appendix C3 of the Listing Rules as the code of conduct for directors' securities transactions[95](index=95&type=chunk) - All directors confirmed compliance with the Model Code throughout the interim period up to the date of this announcement[95](index=95&type=chunk) [Sufficiency of Public Float](index=29&type=section&id=Sufficiency%20of%20Public%20Float) The Company maintained a sufficient public float of at least **25%** of total issued shares, as required by Listing Rules, throughout the interim period - The Company has maintained a sufficient public float as required by the Listing Rules, i.e., not less than **25%** of the total issued shares[96](index=96&type=chunk) [Publication of Interim Results and Interim Report](index=29&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report) This interim results announcement will be published on the Stock Exchange and Company websites, with the interim report also distributed to shareholders and published online - This interim results announcement will be published on the Stock Exchange website (www.hkex.com.hk) and the Company's website (http://www.szxinken.com)[97](index=97&type=chunk) - The interim report will be sent to the Company's shareholders (upon request) in due course and published on the Stock Exchange and the Company's websites[97](index=97&type=chunk)

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) The group achieved significant revenue growth, turned gross loss into profit, and substantially reduced net loss for the six months ended June 30, 2025 Financial Highlights for the Six Months Ended June 30, 2025 | Metric | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Revenue | 11.4 | 5.4 | Increased by 113.4% | | Gross Profit/(Loss) | 1.3 | (1.6) | Turned from loss to profit | | Net Loss | (6.5) | (15.0) | Loss decreased by 56.7% | | Interim Dividend | Not recommended for payment | Nil | No change | [Interim Condensed Consolidated Financial Statements](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) This section presents the group's interim financial performance, position, and equity changes, highlighting significant improvements in profitability and asset management [Interim Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) The group achieved significant revenue growth, turned gross loss into profit, and substantially reduced its loss for the period Key Profit or Loss Statement Data | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Revenue | 11,446 | 5,364 | Increased by 113.4% | | Cost of sales | (10,155) | (6,970) | Increased by 45.7% | | Gross Profit/(Loss) | 1,291 | (1,606) | Turned from loss to profit | | Loss before tax | (6,467) | (15,034) | Loss decreased by 57.0% | | Loss for the period | (6,467) | (15,034) | Loss decreased by 57.0% | | Basic and diluted loss per share | (RMB 0.62 cents) | (RMB 1.45 cents) | Loss decreased by 57.2% | [Interim Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) The group's total comprehensive loss for the period significantly decreased, primarily due to reduced loss for the period, while exchange differences had a net negative impact on comprehensive income Key Comprehensive Income Statement Data | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Loss for the period | (6,467) | (15,034) | Loss decreased by 57.0% | | Exchange differences on translation of overseas operations | 1,158 | (541) | Turned from negative to positive | | Exchange differences on translation of the Company's financial statements | (1,236) | 615 | Turned from positive to negative | | Total comprehensive loss for the period | (6,545) | (14,960) | Loss decreased by 56.3% | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the group's current liabilities significantly increased, leading to a decrease in net current assets and net assets, despite a slight increase in total current assets Key Financial Position Statement Data | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Total non-current assets | 558 | 975 | Decreased by 42.8% | | Total current assets | 101,058 | 99,055 | Increased by 2.0% | | Total current liabilities | 27,271 | 18,879 | Increased by 44.5% | | Net current assets | 73,787 | 80,176 | Decreased by 8.0% | | Net assets | 71,728 | 78,273 | Decreased by 8.4% | [Interim Condensed Consolidated Statement of Changes in Equity](index=6&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) The group's total equity decreased due to the loss for the period and negative impact from exchange fluctuation reserve, reflecting overall financial performance Key Equity Movement Data | Metric | January 1, 2025 (RMB thousand) | June 30, 2025 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Total equity | 78,273 | 71,728 | Decreased by 8.4% | | Loss for the period | – | (6,467) | Led to equity decrease | | Exchange fluctuation reserve | (170) | (248) | Decreased by 78 thousand | | Accumulated losses | (249,660) | (256,127) | Increased by 6,467 thousand | [Notes to the Interim Condensed Consolidated Financial Information](index=7&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) This section provides detailed notes on the group's accounting policies, segment information, revenue, expenses, and financial position [Basis of Preparation and Changes in Accounting Policies and Disclosures](index=7&type=section&id=1.%20Basis%20of%20Preparation%20and%20Changes%20in%20Accounting%20Policies%20and%20Disclosures) This interim financial information is prepared in accordance with HKAS 34, consistent with annual financial statements, and new HKFRS amendments have no significant impact on the group - The interim condensed consolidated financial information is prepared in accordance with HKAS 34 Interim Financial Reporting and should be read in conjunction with the group's annual consolidated financial statements for the year ended December 31, 2024[11](index=11&type=chunk) - The adoption of amendments to HKFRS accounting standards (such as amendments to HKAS 21 and HKAS 1) had no **significant impact** on the group's interim condensed consolidated financial statements[12](index=12&type=chunk)[13](index=13&type=chunk) [Operating Segment Information](index=7&type=section&id=3.%20Operating%20Segment%20Information) The group operates in a single reportable segment, with all revenue and non-current assets concentrated in Mainland China - The group has only one reportable operating segment, and management monitors the group's overall operating results for decision-making purposes[14](index=14&type=chunk) - All of the group's revenue is generated from customers in Mainland China, and all non-current assets are located in Mainland China[15](index=15&type=chunk) [Revenue](index=7&type=section&id=4.%20Revenue) The group's total revenue significantly increased, primarily driven by a substantial rise in revenue from customer contracts, especially from web series distribution Revenue Analysis | Revenue Source | 2025 (RMB thousand) | 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Revenue from customer contracts | 11,440 | 2,909 | Increased by 293.2% | | Revenue from other sources (Non-executive producer license fees) | 6 | 2,455 | Decreased by 99.8% | | **Total Revenue** | **11,446** | **5,364** | **Increased by 113.4%** | Classification of Revenue from Customer Contracts | Category of Goods or Services | 2025 (RMB thousand) | 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Granting of TV series broadcasting rights licenses | 5,056 | 2,909 | Increased by 73.8% | | Distribution of web series | 6,384 | – | New business | | **Total** | **11,440** | **2,909** | **Increased by 293.2%** | - During the period, all of the group's revenue was generated from customers in Mainland China and recognized at a point in time[19](index=19&type=chunk)[20](index=20&type=chunk) [Loss Before Tax](index=8&type=section&id=5.%20Loss%20Before%20Tax) The group's loss before tax decreased primarily due to a significant drop in impairment losses on financial assets and reversal of prepayments under copyright co-investment arrangements, despite increased cost of sales Components of Loss Before Tax | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Cost of inventories sold | 10,155 | 6,890 | Increased by 47.4% | | Impairment of trade receivables | 803 | 5,096 | Decreased by 84.2% | | Reversal of prepayments under copyright co-investment arrangements | (740) | – | New reversal | | Share of loss of an associate | – | 438 | Decreased by 100% | [Income Tax and Dividends](index=9&type=section&id=6.%20Income%20Tax%20and%207.%20Dividends) The group incurred no income tax expense in the reporting period or prior period, and the board did not declare any interim dividend - The group incurred no income tax expense during the reporting period or the corresponding period last year[22](index=22&type=chunk) - The board did not declare any interim dividend during the reporting period (six months ended June 30, 2024: nil)[23](index=23&type=chunk) [Loss Per Share Attributable to Owners of the Parent](index=9&type=section&id=8.%20Loss%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Parent) The group's basic and diluted loss per share significantly decreased due to reduced loss for the period, with no potential dilutive ordinary shares outstanding Loss Per Share | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Basic and diluted loss per share | (RMB 0.62 cents) | (RMB 1.45 cents) | | Weighted average number of ordinary shares outstanding | 1,037,500,000 shares | 1,037,500,000 shares | - As of June 30, 2025 and 2024, the group had no outstanding potential dilutive ordinary shares[24](index=24&type=chunk) [Details of Assets and Liabilities](index=9&type=section&id=G.%20Details%20of%20Assets%20and%20Liabilities) This section details changes in the group's key assets and liabilities, including property, plant and equipment, trade receivables, trade payables, and share capital [Property, Plant and Equipment](index=9&type=section&id=9.%20Property,%20Plant%20and%20Equipment) The book value of property, plant and equipment decreased, primarily due to depreciation during the period Book Value of Property, Plant and Equipment | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Book value at period/year-end | 44 | 72 | Decreased by 38.9% | | Depreciation charged during the period/year | (28) | (91) | Depreciation decreased by 69.2% | [Trade Receivables](index=10&type=section&id=10.%20Trade%20Receivables) Net trade receivables increased significantly, driven by a substantial rise in receivables within three months, despite a decrease in older receivables Trade Receivables and Ageing Analysis | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Trade receivables (Gross) | 174,292 | 167,687 | Increased by 3.9% | | Impairment | (158,382) | (157,579) | Increased by 0.5% | | Trade receivables (Net) | 15,910 | 10,108 | Increased by 57.4% | | **Ageing analysis (Net):** | | | | | Within three months | 8,752 | 142 | Significantly increased | | One to two years | 4,428 | 7,603 | Decreased by 41.7% | [Trade Payables](index=10&type=section&id=11.%20Trade%20Payables) Total trade payables significantly increased, primarily due to a substantial rise in payables within three months Trade Payables and Ageing Analysis | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Total trade payables | 10,147 | 2,829 | Increased by 258.0% | | **Ageing analysis:** | | | | | Within three months | 7,318 | 75 | Significantly increased | | Two to three years | 2,829 | 2,626 | Increased by 7.7% | [Share Capital](index=11&type=section&id=12.%20Share%20Capital) The company's authorized and issued share capital remained unchanged, consisting of 1,037,500,000 ordinary shares Share Capital Composition | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Authorized share capital (USD thousand) | 50 | 50 | | Authorized share capital (RMB thousand) | 336 | 336 | | Issued and fully paid share capital (USD thousand) | 5 | 5 | | Issued and fully paid share capital (RMB thousand) | 36 | 36 | - The issued and fully paid share capital comprises 1,037,500,000 ordinary shares of USD 0.000005 each, remaining unchanged for both periods[28](index=28&type=chunk) [Contingent Liabilities and Commitments](index=11&type=section&id=13.%20Contingent%20Liabilities%20and%2014.%20Commitments) The group had no significant contingent liabilities or unfulfilled contracted capital commitments at the end of the reporting period - As of June 30, 2025, the group had no **significant contingent liabilities** (December 31, 2024: nil)[29](index=29&type=chunk) - As of June 30, 2025 and 2024, the group had no unfulfilled contracted capital commitments[30](index=30&type=chunk) [Related Party Transactions](index=11&type=section&id=15.%20Related%20Party%20Transactions) The group's related party transactions primarily involved remuneration paid to key management personnel, with a decrease compared to the prior period Key Management Personnel Remuneration | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Short-term employee benefits | 607 | 726 | Decreased by 16.4% | | Pension scheme contributions | 98 | 63 | Increased by 55.6% | | Total remuneration paid to key management personnel | 705 | 789 | Decreased by 10.6% | [Events After the Reporting Period](index=11&type=section&id=16.%20Events%20After%20the%20Reporting%20Period) No events with significant impact on the group have occurred since June 30, 2025 - No events with a **significant impact** on the group have occurred since June 30, 2025[32](index=32&type=chunk) [Management Discussion and Analysis](index=12&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews the group's business operations, financial performance, liquidity, and future outlook, highlighting key drivers and challenges [Business and Operations Review and Outlook](index=12&type=section&id=Business%20and%20Operations%20Review%20and%20Outlook) The group achieved substantial revenue growth, primarily from web series distribution, and successfully reduced net loss; it remains cautiously optimistic, focusing on web series and cost control amidst market challenges - The group primarily engages in licensing broadcasting rights for TV series or web series, investing in TV series and web series as a non-executive producer, and acting as a distribution agent[33](index=33&type=chunk) - Total revenue was approximately **RMB 11.4 million**, an increase of approximately **113.4%** compared to the prior period, mainly from licensing and distributing web series[33](index=33&type=chunk) - Net loss decreased to approximately **RMB 6.5 million** from approximately **RMB 15.0 million** in the prior period, still impacted by lower-than-expected web series revenue and delayed self-produced TV series broadcasting plans[33](index=33&type=chunk) - The group will closely monitor market conditions, explore opportunities in web series (including short web series) and TV series businesses, and maintain prudent financial management and cost control[35](index=35&type=chunk) [Financial Review](index=13&type=section&id=Financial%20Review) The group's financial performance significantly improved with substantial revenue growth and a return to gross profit, while impairment losses on financial assets and finance costs sharply decreased, collectively narrowing the loss for the period [Revenue](index=13&type=section&id=Revenue) Revenue increased significantly, primarily driven by higher income from licensing web series broadcasting rights - During the reporting period, the group recorded revenue of approximately **RMB 11.4 million**, an increase of approximately **113.4%** compared to the prior period[36](index=36&type=chunk) - The increase in revenue was primarily due to increased revenue from licensing web series broadcasting rights[36](index=36&type=chunk) [Cost of Sales and Gross Profit](index=13&type=section&id=Cost%20of%20Sales%20and%20Gross%20Profit) Cost of sales increased, leading to a positive gross profit, primarily driven by higher revenue from web series licensing Changes in Cost of Sales and Gross Profit | Metric | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Cost of sales | 10.2 | 7.0 | Increased by 45.7% | | Gross Profit/(Loss) | 1.3 | (1.6) | Turned from loss to profit | - The increase in cost of sales was primarily due to increased revenue from licensing web series broadcasting rights[37](index=37&type=chunk) [Other Income and Gains](index=13&type=section&id=Other%20Income%20and%20Gains) Other income and gains significantly increased during the reporting period Other Income and Gains | Metric | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Other income and gains | 0.9 | 0.2 | Increased by 350% | [Selling and Distribution Expenses](index=13&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses significantly increased, primarily driven by higher advertising costs Selling and Distribution Expenses | Metric | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Selling and distribution expenses | 2.7 | 0.6 | Increased by 337.4% | - The increase was primarily due to increased advertising expenses[39](index=39&type=chunk) [Administrative Expenses](index=14&type=section&id=Administrative%20Expenses) Administrative expenses decreased during the reporting period Administrative Expenses | Metric | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Administrative expenses | 5.2 | 7.3 | Decreased by 29.2% | [Impairment Losses on Financial Assets](index=14&type=section&id=Impairment%20Losses%20on%20Financial%20Assets) Impairment losses on financial assets significantly decreased, primarily due to the ageing of trade receivables Impairment Losses on Financial Assets | Metric | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Impairment losses on financial assets | 0.8 | 5.1 | Decreased by 84.3% | - The impairment losses were attributable to the ageing of trade receivables for the six months ended June 30, 2025[41](index=41&type=chunk) [Finance Costs](index=14&type=section&id=Finance%20Costs) Finance costs significantly decreased, mainly because the group had no fixed-return investment agreements with investors for TV series Finance Costs | Metric | 2025 (RMB thousand) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Finance costs | 10 | 0.2 | Decreased by 95% | - The decrease was primarily due to the group having no fixed-return investment agreements with investors for TV series during the reporting period[42](index=42&type=chunk) [Loss for the Reporting Period](index=14&type=section&id=Loss%20for%20the%20Reporting%20Period) Loss attributable to owners of the parent significantly decreased, driven by increased gross profit and reduced impairment losses Loss Attributable to Owners of the Parent | Metric | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Loss attributable to owners of the parent | 6.5 | 15.0 | Loss decreased by 56.7% | - The decrease in loss for the reporting period was primarily due to increased gross profit and reduced impairment losses on financial assets[43](index=43&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=14&type=section&id=Liquidity,%20Financial%20Resources%20and%20Capital%20Structure) The group's cash and net current assets decreased, but the gearing ratio improved, and management believes it has sufficient working capital for business development needs Key Liquidity and Capital Structure Data | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | 13.5 | 20.7 | Decreased by 34.8% | | Net current assets | 73.8 | 80.2 | Decreased by 8.0% | | Gearing ratio | 0.54% | 0.98% | Improved | | Equity attributable to owners of the parent | 71.7 | 78.3 | Decreased by 8.4% | - The decrease in equity attributable to owners of the parent was primarily due to the loss for the reporting period[45](index=45&type=chunk) - The group believes it has **sufficient working capital** to meet its funding requirements for business development[45](index=45&type=chunk) [Pledged Assets and Contingent Liabilities](index=15&type=section&id=Pledged%20Assets%20and%20Contingent%20Liabilities) The group had no pledged assets or significant contingent liabilities at the end of the reporting period - As of June 30, 2025, the group had no pledged assets[46](index=46&type=chunk) - As of June 30, 2025, the group had no **significant contingent liabilities**[47](index=47&type=chunk) [Employees, Remuneration Policy and Training](index=15&type=section&id=Employees,%20Remuneration%20Policy%20and%20Training) The group employed **22** full-time staff in China with employee costs of approximately **RMB 1.8 million**, offering competitive remuneration, benefits, training, and participating in MPF schemes - As of June 30, 2025, the group employed a total of **22** full-time employees, all located in China[48](index=48&type=chunk) - During the reporting period, the group's employee costs amounted to approximately **RMB 1.8 million**[49](index=49&type=chunk) - The group provides employees with competitive salaries, discretionary bonuses, and other incentives, participating in various local government-organized employee welfare schemes (including housing, retirement, and social insurance) and Mandatory Provident Fund schemes[49](index=49&type=chunk)[50](index=50&type=chunk) - The group provides induction training, regular on-the-job training, and organized training on TV series licensing and production during the reporting period[49](index=49&type=chunk)[52](index=52&type=chunk) [Significant Acquisitions and Disposals of Subsidiaries and Associates](index=16&type=section&id=Significant%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%20and%20Associates) The group did not undertake any significant acquisitions or disposals of subsidiaries and associates during the reporting period - The group had no **significant acquisitions or disposals** of subsidiaries and associates during the reporting period[54](index=54&type=chunk) [Significant Investments During the Reporting Period](index=16&type=section&id=Significant%20Investments%20During%20the%20Reporting%20Period) The group made no significant equity investments in other companies during the reporting period and has no current plans for future major investments or capital assets - During the reporting period, the group made no **significant investments** in the equity of any other companies[55](index=55&type=chunk) - The company currently has no other future plans regarding **significant investments** or capital assets[55](index=55&type=chunk) [Foreign Exchange Risk](index=16&type=section&id=Foreign%20Exchange%20Risk) Operating primarily in China with all transactions settled in RMB, the group faces limited foreign exchange fluctuation risk and uses no hedging instruments - The group operates in China, with all transactions settled in RMB, thus foreign currency fluctuation risk is essentially dependent on the RMB exchange rate performance[56](index=56&type=chunk) - During the reporting period, the group did not use any long-term contracts, currency borrowings, or other methods to hedge foreign currency risk[56](index=56&type=chunk) [Significant Litigation](index=16&type=section&id=Significant%20Litigation) As of the announcement date, the group was not involved in any significant litigation, arbitration, or claims - As of the date of this announcement, no member of the group was involved in any **significant litigation**, arbitration, or claims[57](index=57&type=chunk) [Other Information](index=16&type=section&id=Other%20Information) This section covers post-reporting period events, securities transactions, corporate governance, and director information [Events After Reporting Period](index=16&type=section&id=Events%20After%20Reporting%20Period) No significant events have occurred from the end of the reporting period up to the date of this announcement - No **significant events** have occurred from the end of the reporting period up to the date of this announcement[58](index=58&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=16&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20Listed%20Securities) The company and its subsidiaries did not purchase, sell, or redeem any of their listed securities during the reporting period - During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any of their listed securities[59](index=59&type=chunk) [Corporate Governance Practices](index=17&type=section&id=Corporate%20Governance%20Practices) The group is committed to high corporate governance standards, adopting the HKEX Corporate Governance Code, though some non-executive directors missed the AGM - The company has adopted the Corporate Governance Code set out in Appendix C1 to the HKEX Listing Rules and will continue to review and enhance its corporate governance practices[60](index=60&type=chunk) - Non-executive Director Mr. Shao Hui and Independent Non-executive Directors Mr. Xu Zongzheng, Ms. Liu Jingping, and Mr. Xian Guoming did not attend the company's Annual General Meeting held on May 30, 2025, due to other engagements[60](index=60&type=chunk) [Model Code for Securities Transactions](index=17&type=section&id=Model%20Code%20for%20Securities%20Transactions) The group's directors confirmed full compliance with the Model Code for Securities Transactions by Directors of Listed Issuers throughout the reporting period - All directors confirmed their full compliance with the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules throughout the reporting period[61](index=61&type=chunk) [Directors' Responsibility for Financial Statements](index=17&type=section&id=Directors%27%20Responsibility%20for%20Financial%20Statements) The directors confirmed their responsibility for preparing the company's financial statements and noted that the financial information in this announcement is unaudited - The directors confirmed their responsibility for preparing the company's financial statements[62](index=62&type=chunk) - The financial information contained in this announcement is unaudited[62](index=62&type=chunk) [Appointment of Chief Operating Officer and Marketing Director](index=17&type=section&id=Appointment%20of%20Chief%20Operating%20Officer%20and%20Marketing%20Director) Mr. Liu Tieqiang was appointed Chief Operating Officer, and Mr. Gui Xiaohua as Marketing Director, both effective July 22, 2025 - Executive Director Mr. Liu Tieqiang was appointed as the company's Chief Operating Officer effective July 22, 2025[63](index=63&type=chunk) - Mr. Gui Xiaohua was appointed as the company's Marketing Director effective July 22, 2025[64](index=64&type=chunk) [Auditor](index=18&type=section&id=Auditor) Ernst & Young resigned due to a fee disagreement, and BDO Limited was appointed as the new auditor - Ernst & Young resigned due to an inability to agree on audit fees for the financial year ending December 31, 2025, effective July 25, 2025[65](index=65&type=chunk) - BDO Limited was appointed as the company's new auditor on July 25, 2025[65](index=65&type=chunk) - The Board and Audit Committee confirmed no other disagreements or unresolved matters between Ernst & Young and the company, apart from the fee issue[65](index=65&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=18&type=section&id=Directors%27%20and%20Chief%20Executive%27s%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20or%20any%20Associated%20Corporation) This section discloses the interests of the company's directors and chief executive in the company's shares, primarily held through controlled corporations Directors' and Chief Executive's Shareholding Profile | Director's Name | Nature/Capacity of Interest | Number of Shares Held (L) | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Liu Naiyue | Interest in controlled corporation | 239,002,500 | 23.04% | | Ms. Liu Peiyao | Interest in controlled corporation | 239,002,500 | 23.04% | | Mr. Shao Hui | Interest in controlled corporation | 100,622,500 | 9.69% | - Mr. Liu Naiyue and Ms. Liu Peiyao are deemed to be interested in the shares beneficially owned by BLW Investment Limited due to a core shareholders' acting-in-concert deed[66](index=66&type=chunk) - Mr. Shao Hui is deemed to be interested in the shares beneficially owned by SDJZ Investment Limited[67](index=67&type=chunk) [Substantial Shareholders' Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company](index=19&type=section&id=Substantial%20Shareholders%27%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company) This section lists the interests of substantial shareholders, excluding directors and chief executives, in the company's shares, including beneficial owners, controlled corporations, and spouses Substantial Shareholders' Shareholding Profile | Name/Entity | Capacity/Nature of Interest | Number of Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | BLW Investment Limited | Beneficial owner | 239,002,500 | 23.04% | | Ms. Wei Xian | Interest in controlled corporation | 239,002,500 | 23.04% | | Mr. Bai Yang | Interest in controlled corporation | 239,002,500 | 23.04% | | Ms. Xie Jinhong | Spouse's interest | 239,002,500 | 23.04% | | Mr. Wu Tao | Interest in controlled corporation | 239,002,500 | 23.04% | | Ms. Chen Ying | Spouse's interest | 239,002,500 | 23.04% | | Suiyong International Limited | Beneficial owner | 110,010,000 | 10.60% | | Suiyong Holdings Limited | Interest in controlled corporation | 110,010,000 | 10.60% | | SDJZ Investment Limited | Beneficial owner | 100,622,500 | 9.69% | | Hangzhou Baihui Equity Investment Fund Partnership (Limited Partnership) | Interest as party to agreement | 100,622,500 | 9.69% | | Tibet Langrun Investment Management Co., Ltd. | Interest as party to agreement | 100,622,500 | 9.69% | | Ms. Lu Min | Spouse's interest | 100,622,500 | 9.69% | | JMJ Group Limited | Beneficial owner | 86,872,500 | 8.37% | | Mr. Xu Jun | Interest in controlled corporation | 86,872,500 | 8.37% | | Ms. Zhang Hui | Spouse's interest | 86,872,500 | 8.37% | | SYYT Investment Limited | Beneficial owner | 70,002,500 | 6.74% | | Mr. Sun Xianliang | Interest in controlled corporation | 70,002,500 | 6.74% | | Ms. Yu Jinmei | Spouse's interest | 70,002,500 | 6.74% | | Jinping Holding Limited | Beneficial owner | 54,997,500 | 5.30% | | Ms. Jin Ping | Interest in controlled corporation | 54,997,500 | 5.30% | | Mr. Yao Changhui | Spouse's interest | 54,997,500 | 5.30% | [Changes in Information of Directors and Chief Executive of the Company](index=21&type=section&id=Changes%20in%20Information%20of%20Directors%20and%20Chief%20Executive%20of%20the%20Company) This section outlines changes in the information of the company's directors and chief executive during the reporting period and up to the announcement date Changes in Directors' Information | Director's Name | Details | Effective Date | | :--- | :--- | :--- | | Dr. Huang Sile | Appointed as alternate director to Mr. Liu Naiyue | May 27, 2025 | | Dr. Huang Sile | Ceased to be alternate director to Mr. Liu Naiyue | May 30, 2025 | [Share Option Scheme](index=22&type=section&id=Share%20Option%20Scheme) The company has a share option scheme to reward contributors, capped at **10%** of issued shares, with no options granted, exercised, or outstanding as of the announcement date - The Share Option Scheme was conditionally adopted on December 12, 2019, to reward eligible participants who have contributed or may contribute to the group[75](index=75&type=chunk) - The maximum number of shares involved in share options shall not exceed **10%** of the issued shares on the listing date (i.e., **100,000,000 shares**)[75](index=75&type=chunk) - The Share Option Scheme will be valid and effective for a period of **ten years** from the adoption date, with approximately **4 years and 4 months** remaining[75](index=75&type=chunk) - As of the date of this announcement, no share options under the Share Option Scheme have been granted or agreed to be granted, exercised, cancelled, expired, or lapsed, nor are there any outstanding share options, warrants, or convertible instruments convertible into shares[76](index=76&type=chunk) [Continuing Disclosure Obligations under the Listing Rules](index=23&type=section&id=Continuing%20Disclosure%20Obligations%20under%20the%20Listing%20Rules) The company confirms no other continuing disclosure obligations under the Listing Rules beyond those disclosed in this announcement - Save as disclosed in this announcement, the company has no other disclosure obligations under Rules 13.20, 13.21, and 13.22 of the Listing Rules[78](index=78&type=chunk) [Review by Audit Committee](index=23&type=section&id=Review%20by%20Audit%20Committee) The Audit Committee reviewed the group's accounting principles, internal controls, and unaudited interim financial statements, deeming them compliant with applicable standards and adequately disclosed - The Audit Committee has reviewed the accounting principles and practices adopted by the group with the company's management and discussed internal controls and financial reporting matters, including the unaudited condensed consolidated financial statements for the six months ended June 30, 2025[79](index=79&type=chunk) - The Audit Committee is of the opinion that the financial information complies with applicable accounting standards, the Listing Rules, and legal requirements, and that adequate disclosures have been made[79](index=79&type=chunk) - The group's unaudited condensed consolidated interim financial statements have not been audited or reviewed by the company's external auditor[79](index=79&type=chunk) [By Order of the Board](index=23&type=section&id=By%20Order%20of%20the%20Board) This announcement is issued by Mr. Liu Naiyue, Chairman and Executive Director, on behalf of the Board, and lists the current Board composition - This announcement is issued by Mr. Liu Naiyue, Chairman and Executive Director of New Stone Culture Investment Limited, on behalf of the Board[80](index=80&type=chunk) - The Board comprises Executive Directors Mr. Liu Naiyue, Ms. Cai Xiaoxin, Ms. Liu Peiyao, Ms. Li Fang, Mr. Liu Tieqiang, and Mr. Qu Guohui; Non-executive Director Mr. Shao Hui; and Independent Non-executive Directors Mr. Xian Guoming, Mr. Xu Zongzheng, Mr. Zhong Mingshan, and Ms. Liu Jingping[81](index=81&type=chunk)